BRAND MANAGEMENT

Dr. S. Saibaba
Associate Professor – Marketing
Alliance University
 What is a brand?

• For the American Marketing Association (AMA), a brand is a

“name, term, sign, symbol, or design, or a combination of
them, intended to identify the goods and services of one
seller or group of sellers and to differentiate them from those
of competition.”

• These different components of a brand that identify and

differentiate it are brand elements.

1.2
 Concept of branding
• For the consumers, a brand is a product. But
for the maker or the seller, a brand is an
identifier of its goods and services and a
promise of consistently delivering the
features/benefits that the consumers desire
from the brand.
 Significance of Branding
• Branding is one of the key issues and biggest
challenges in corporate and marketing strategies.
• A product that is not branded is a commodity, such
as sugar, rice, etc., and while purchasing a
commodity, one only considers its physical attributes
and benefits.
• A brand, on the other hand, is a ‘lens through which
the consumers view the product and the firm’.
• It is basically a product with added dimensions,
which make it different in some way or the other
from other products that satisfy the same needs
 Importance of Brands to Consumers
• Identification of the source of the product
• Assignment of responsibility to product maker
• Risk reducer
• Search cost reducer
• Promise, bond, or pact with product maker
• Symbolic device
• Signal of quality

1.5
 Importance of Brands to Firms
• Identification to simplify handling or tracing
• Legally protecting unique features
• Signal of quality level
• Endowing products with unique associations
• Source of competitive advantage
• Source of financial returns

1.6
 Can everything be branded?
• Ultimately a brand is something that resides in
the minds of consumers.
• The key to branding is that consumers
perceive differences among brands in a
product category.
• Even commodities can be branded:
– Coffee (Maxwell House), bath soap (Ivory), flour
(Gold Medal), beer (Budweiser), salt (Morton),
oatmeal (Quaker), pickles (Vlasic), bananas
(Chiquita), chickens (Perdue), pineapples (Dole),
and even water (Perrier)
1.7
 What can we brand?
• A service—for example, Life Insurance Corporation, State
Bank of India
• A product—for example, Nokia mobile, Lux soap, Knorr soup
• A store—for example, Big Bazaar, Shoppers Stop
• A place/geographic location—for example, Taj Mahal, India
(the Incredible India! campaign)
• A person—for example, Aamir Khan, Amitabh Bachchan
• An idea—for example, World Wildlife Fund
• An online organization—for example, Amazon, Make my Trip
• An organization—for example, UNICEF
 Branding Challenges and Opportunities

• Savvy customers
• Brand proliferation
• Media fragmentation
• Increased competition
• Increased costs
• Greater accountability

1.10
Brands are Key Intangibles in
most businesses
 Risk vs. Return
• The most established way to reduce risk is
through Powerful Brands-
• Proctor and Gamble paid £27 billion pounds
for the intangible assets of Gillette.

• Rita Clifton, Chairman of Inter-brand (2009)

account for a quarter of all global
“corporate wealth”.
 Successful Brands can…..
• Successful brand building helps profitability by
adding values that entice customers to buy.
• They also provide a firm base for expansion into
product improvements, variants, added services,
new countries and so on.
• They also protect companies against the growing
power of intermediaries.
• Last but not least, they help transform organisations
from being faceless bureaucracies to entities that are
attractive to work for and deal with.
Difference between a Product and a Brand

BRAND
Symbols
Brand
personality
Country of Scope
origin
Functional Attribute
benefits
User
PRODUCT imagery
Organizational
associations
Product
Quality/value uses

Emotional
Brand benefits
customer
relationship Self-expressive
benefits
The Importance of Added Values
 A better definition of Brand……..

A brand is a cluster of functional

and emotional values that
enables organizations to make a
promise about a unique and
welcomed experience.
Brands as Relationship Builders
Brand Consumerization Spectrum
The Five Forces Influencing
Brand Potential
 The Three C’s of Branding
• Clarity

• Consistency

• Constancy
 Brand Building Process
• Starts with a Quality Product
• Identify your Brand’s Singular Distinction, Define your
Message, and Position Your Brand Properly in the
Marketplace.
• Tap into Emotion
• Build the Image
• Market the Image
• Live the Message
• Measure Your Brand Equity Against the Competition
and Continue to Build and Refine Your Brand.
 Types of Brands

• Functional brands
• Image brands
• Experience brands
 Branding challenges
• Intelligent and educated customers
• Growth of private labels
• Brand proliferation
• Increasing trade power
• Media fragmentation and the rise of new media
• Increasing cost of product introduction and support
• Increasing job turnover
 Overcoming branding challenges
• Brand equity
• Brand loyalty
– Brand switchers
– Habitual buyers
– Switching-cost loyal
– Friends of the brand
– Committed customers
Historical perspective of branding
Committed
Level 5
customer/consumer
Take pride in using the
‘Friendsbrand
of the brand’
Level 4 Recommend
Emotional attachmentbrand
withtothe
others
brand
Truly like the brand and consider it as a friend
‘Switching-cost loyal’
Level 3 Satisfied with the brand and have a switching cost
Competitors need to overcome switching cost

‘Habitual buyers’
Level 2 Satisfied buyers, absence of any dissatisfaction
Vulnerable to competitor’s stimulations

Brand switchers
Level 1 Indifferent to the brand name
Buying decision based on price, availability etc and
Brand name does not play a significant role in the purchase decisions
India's most-trusted brands of 2014
CUSTOMER-BASED
BRAND EQUITY
 What is Brand Equity?
• ‘Brand equity is a set of brand assets and
liabilities linked to a brand, its name, and
symbol, that adds value to or subtracts from
the value provided by a product or service to a
firm and/or to that firm’s customers’
(Aaker 1991).
•
 Customer-Based Brand Equity

• “The differential effect that brand knowledge

has on consumer response to the marketing of
that brand.”

Keller, 1993

2.42
 Customer-Based Brand Equity
• Differential effect
– Differences in consumer response
• Brand knowledge
– A result of consumers’ knowledge about the
brand
• Consumer response to marketing
– Choice of a brand
– Recall of copy points from an ad
– Response to a sales promotion
– Evaluations of a proposed brand extension

2.43
 Brand Equity as a “Bridge”
• Reflection of past investments in the marketing
of a brand
• Direction for future marketing actions or
programs

2.44
 Need for Building Brand Equity
• Brand equity has a positive influence on market
power.
• It positively impacts consumers’ willingness to pay
price premiums.
• It leads to ‘higher efficiency and effectiveness of their
marketing programs’.
• It positively impacts the company’s market share.
• It results in improved future profits and long-term
cash-flow.
• It can build brand loyalty, which in turn reduces
marketing costs.
 Need for Building Brand Equity
• It can deliver emotional, safety, prestige, or other
benefits that are important to consumers.
• It reduces the anticipated risk, enhances anticipated
confidence in the brand purchase decision, and
increases satisfaction with the brand.
• It leads to sustainable competitive advantage.
• It ultimately leads to marketing success for the
brand.
• Strong brand equity can help in achieving success for
new products launched as brand extensions.
Mahashian Di Hatti (The respected man's shop)
 Making a Brand Strong:
Brand Knowledge
• Brand knowledge is the key to creating brand
equity.
• Brand knowledge consists of a brand node in
memory with a variety of associations linked
to it.
• Brand knowledge has two components: brand
awareness and brand image.

2.48
 Sources of Brand Equity
• Brand awareness
– Brand recognition
– Brand recall
• Brand image
– Strong, favorable, and unique brand associations

2.49
 Brand Awareness Advantages
• Learning advantages
– Register the brand in the minds of consumers
• Consideration advantages
– Likelihood that the brand will be a member of the
consideration set
• Choice advantages
– Affect choices among brands in the consideration
set

2.50
 Establishing Brand Awareness
• Increasing the familiarity of the brand through
repeated exposure (for brand recognition)
• Forging strong associations with the
appropriate product category or other
relevant purchase or consumption cues (for
brand recall)

2.51
 Levels of brand awareness
Level 6: Opinion
about Brand

Level 5: Knowledge of
the Brand

Level 4: Brand
supremacy

Level 3: Top-of-the
mind recall

Level 2: Brand
recall

Level 1: Brand
recognition
 Creating a Positive Brand Image
• Brand Associations
– Does not matter which source of brand
association
– Need to be favorable, strong, and unique
– Marketers should recognize the influence of these
other sources of information by both managing
them as well as possible and by adequately
accounting for them in designing communication
strategies.

2.53
 The Four Steps of Brand Building
1. Ensure identification of the brand with customers
and an association of the brand in customers’ minds
2. Establish the totality of brand meaning in the minds
of consumers
3. Elicit the proper customer responses to the brand
identification and brand meaning
4. Convert brand response to create an intense, active
loyalty relationship between customers and the
brand

2.54
Customer-Based Brand Equity Pyramid

4. RELATIONSHIPS =
RESONANCE What about you and me?

3. RESPONSE =
JUDGMENTS FEELINGS
What about you?

2. MEANING =
PERFORMANCE IMAGERY What are you?

1. IDENTITY =
SALIENCE
Who are you?
2.55
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES

SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, SITUATIONS
DURABILITY & SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
Customer-Based Brand Equity Model

Consumer- INTENSE, ACTIVE

LOYALTY
Brand
Resonance

RATIONAL &
Consumer Consumer EMOTIONAL
Judgments Feelings REACTIONS

POINTS-OF-
PARITY &
Brand Brand POINTS-OF-
Performance Imagery DIFFERENCE

DEEP, BROAD
Brand Salience BRAND
AWARENESS
 Sources of Brand Equity
Joint Perceived
Branding Advertising
programmes
spending Corporate
Brand Societal
knowledge Marketing

Brand
Brand elements
associations

Building
Brand Brand
Perceived Equity community
quality

Country-of-
origin
Brand
loyalty
Company
image
Endorsements
Events, third Distribution
party channels
 Brand Building Implications
• Customers own brands.
• Don’t take shortcuts with brands.
• Brands should have a duality (head and heart).
• Brands should have richness.
• Brand resonance provides important focus.

2.59
 Profit Brand
• Profit Brand is defined as ‘a long-term
profitable bond between an offering and
customers.
• This relationship is based on trust and loyalty,
backed by everyday operational excellence
and measured by customer equity’.
 A Profit Brand has six characteristics
• Attention
• Transactional Excellence
• Trust
• Loyalty
• Advocacy
• Profitability
 Three Es of Profit Branding

• Emotional Requirements

• Experiential Requirements

• Economic Requirements
 Profit Branding Process

• Find

• Keep

• Grow

• Profit
 Creating Customer Value
• Customer-brand relationships are the
foundation of brand resonance and building
a strong brand.
• The customer-based brand equity model
certainly puts that notion front and center.

2.64
Is a company consumer-centric?
1. Is the company looking for ways to take care of
you?
2. Does the company know its customers well
enough to differentiate between them?
3. Is someone accountable for customers?
4. Is the company managed for shareholder value?
5. Is the company testing new customer offers and
learning from the results?

Sources: Larry Selden and Geoffrey Colvin, 2004.

2.65
 Customer Equity

• Blattberg and Deighton (1996) offer eight guidelines as a

means of maximizing customer equity:

– Invest in highest-value customers first

– Transform product management into customer management
– Consider how add-on sales and cross-selling can increase customer
equity
– Look for ways to reduce acquisition costs
– Track customer equity gains and losses against marketing programs
– Relate branding to customer equity
– Monitor the intrinsic retainability of your customer
– Consider writing separate marketing plans—or even building two
marketing organizations—for acquisition and retention efforts

2.66
 Customer Equity
• The sum of lifetime values of all customers
• Customer lifetime value (CLV) is affected by
revenue and by the cost of customer
acquisition, retention, and cross-selling
• Consists of three components:
– Value equity
– Brand equity
– Relationship equity

Rust, Zeithamal & Lemon, 2004

2.67
 Customer Equity
• ‘Customer equity effectively explains success and
failure in business… The companies with the
highest retention rates also earn the best profits.
• Relative retention explains profits better than
market share, scale, cost, position or any other
variable associated with competitive advantage.’
Frederick F Reichheld and Thomas Teal,
The Loyalty Effect (1996)
 Advantages of Customer Equity
• Improved Profitability • Investment Insights
• Increased Accountability • Organizational Focus
• Segmentation Insights • Increased Advocacy
BRAND POSITIONING
 Seth Godin says………
• “Marketers are doing exactly the wrong thing:
they’re running more ads. They’re putting ads
on parking meters, in hotel elevators, in
washrooms. Because they think that the
answer to clutter is more clutter. That’s why
there’s so much spam in your email box.
Because marketers are desperate”.
 DIFFERENTIATE OR DIE
• To succeed, the first step is to position or
‘situate’ the brand in the target consumer’s
mind in such a way, that in his or her
perception of the brand, it is distinctive and
offers a persuasive customer value better than
its competitors. This is called competitive
advantage.
 Jack Trout says………
• “Positioning is how you differentiate yourself in the
mind of your prospect. It’s also a body of work on
how the mind works in the process of
communications”.
• Five most important elements in the positioning
process:
– Minds are limited
– Minds hate confusion
– Minds are insecure
– Minds don’t change
– Minds can lose focus
 Tupperware – The Brand
• Positioned on health and wellness platform

• Health benefits of using TPW

• Traditional rasoi  Modern Kitchen

 INTRODUCTION
• Through a brand's positioning, a company tries to
build a sustainable competitive advantage on
product attribute(s) - tangible or intangible - in
the mind of the consumer.
• This advantage is designed to appeal to one or
more segments in that product category.
• To effectively position (or reposition) a brand, the
company must know how this brand is perceived
in relationship to other brands in the product
category.
 Brand Positioning

• It is the most basic of all strategic statements and provides

a blueprint for the marketing and development of a brand.
• Its purpose is to focus the efforts of all those involved in
marketing and development activities for the brand.
• It is an essential element of each brand's Marketing
Strategy and must precede the development of all brand
substrategies (i. e., creative, promotion, product, media
and packaging).
• - The Positioning Statement states the reason for the
brand's existence and once successfully established, it
should rarely be changed.
 Positioning statement
• Positioning statement is ‘the message that
communicates brand image to consumers… it
conveys to consumers how one firm’s offering
are differentiated from a competitors’ and
signals how the firm wishes to be seen or
perceived. A strong and consistent positioning
statement is necessary to stand out against
competitors and should help sharpen and
strengthen the brand identity’
 Positioning statement (contd.)
• The template of choice of the positioning statement was
authored by Geoffrey Moore (cited in The Beaupre Buzz,
2003) and is as follows:
– For (target customers)
– Who (have the following problem)
– Our product is a (describe the product or solution)
– That provides (cite the breakthrough capability)
– Unlike (reference competition),
– Our product/solution (describe the key point of competitive
differentiation)
• Nirula’s positioning statement “Nirula's is warm,
contemporary, accessible, eating place for families including
children and young adults, serving the widest variety of Indian
and International food, beverages and desserts, at affordable
prices. “
• Urban and Hauser (1993) state, "Positioning is
critical for a new product. Not only must a new
product deliver the benefits the customer needs,
but it must do so better than competition(p.
202)." In developing a positioning, the marketer
must consider four things:
– The target market..
– How the product is different or better than
competitors.
– The value of this difference to the target market.
– The ability to demonstrate or communicate this
difference to the target market.
 Segmentation
•Consumer based
Buying situation based

TARGETING
•Evaluate market segment
Select Market segment

Positioning
Strategy Identification of brand benefits

CHANGING CONSUMER SITUATIONAL ANALYSIS

TRENDS •Internal corporate analysis
Current positioning (if repositioning)
External market analysis
COMPETITOR
ANALYSIS

Analysis for differentiation

possibilities of the brand image
•POP
•POD

Selecting the strategy

 EFFECTIVE POSITIONING

• „Meaningful to consumers

• „Credible/believable

• „Unique to your brand

• „Durable over time

• „Identify competitors

• D
„ etermine most important attributes
consumers use in choosing a brand

• D
„ etermine consumers 'perceptions of
competitors
• „Determine perceptions of your brand

• „What is the ideal brand for your market

segments?

• „Assess best positioning strategy

• „Track image of brand over time

 PERCEPTUAL MAPPING

• „Ask consumers what their top criteria are in

choosing a product (desired attributes)
• „Which brands would they consider? (choice
alternatives)
• „How are these brands perceived on the
desired attributes?
 Repositioning strategies
Changing demographic trends and lifestyles
• The young Indian consumer
• Rising household income
• Spending habits and brand behaviour
• Rise of the Indian women as a consumer
• Changing consumer expectations
• Changing lifestyle
• Regional differences
 Repositioning strategies
PRODUCT
Same Different

Same Image Product

repositioning repositioning
TARGET
MARKET

Intangible Tangible
Different repositioning repositioning