Brand Management

Brand Promise Harish Bijoor Strategic Asset Nirmalya Kumar Functional, Economic & Emotional Value Propositions Deepak Jain A collection of perceptions held in the mind of the consumer Susan Fournier A name, term, sign, symbol or design, or their combination, intended to identify goods & services of a business or group of businesses and differentiate them from competitors Kotler A mixture of tangible and intangible attributes symbolised in a trademark, which, if properly managed, creates influence and generates value Interbrand Companys brand decision making: To Brand or Not to Brand?

Brand associations The brand stays as a set of associations in the mind of the customer eg Amul may mean- Indian, butter, milk, cheese, co-operative, value, or even the ads. These associations are stored as links to the brand that include the brand, company, category, visuals, celebrity, design, usage experience, feelings. These links help the customer prefer a brand over competitors but a negative link can be disastrous for the brand. Eg Cadbury is generic in India for milk chocolates and common associations could be dairy milk, taste, value, satisfaction, international quality etc but the negative association of the worm-controversy hurt the brand.

Creating a solid network of associations helps create a strong brand preference, where the customer demands for a brand and also knows what to expect with the brand. If the brands delivers on expectations, brand credibility builds up which helps deter competition and brand switching. Eg Titan, Nokia, Amul, Levis, Santro Customers brand decision making (Buying a Shirt upto Rs 1000) Brands Unknown Manzoni, Pedroni, Zegna, Known Louis Phillipe, Van Heusen, Arrow, Color Plus, Peter England, Dockers, Charagh Din, Oxemberg, Indian Terrain, Zodiac, Austin Reed, Allen Solly, JohnPlayer, Armani, M&S, Wills LS, Park Avenue,

Acceptable Louis Phillipe, Van Heusen, Arrow, Austin Reed, JohnPlayer,

Unacceptable Cambridge, Peter England, Oxemberg

Indifferent Allen Solly, CD, Dockers, Indian Terrain

Overlooked Armani, M&S, Wills, Zodiac, Color Plus, Arrow

Purchased Van Heusen

Not Purchased Louis Phillipe, Arrow, Austin Reed, JohnPlayer

The companys marketing efforts are focused on pushing the brand first into the known stage and then to take it up to the purchased stage. Surrounding the consumer with the right kind of links in an associated network, created through brand experiences and marketing communication helps form thoughts, feelings, images, beliefs, perceptions, opinions, and preferences. These links form strong associations deep into the mind of the customer which drives purchase preference.

Exercise: Create a customers brand decision making model and a companys brand decision making model for a company and a category, similar to the illustrations above Customer Based Brand Equity Pyramid- Keller (Brand Resonance Pyramid) Brand resonance characterized by strong brand & consumer connect, throusage & experience Strong resonant brands- increased loyalty & decreased vulnerability to competitive actions Brand challenge- ensure right customer experiences to create right brand knowledge Brand equity- customers develop differential towards a brand hence prefer it over others Understanding differential critical to interpret the past, design effective future programmes

Building resonance involves a series of steps Identity- Who are you- consumers begin to understand what a brand stands for, means Meaning- What are you- consumers link in/tangible associations, understand PoD & PoP Response- What about you- judge brands on credibility, expertise & trustworthiness Relationships- What about you and me- How to connect, create intense, active loyalty

Building blocks- structure to build brands with customers Salience- consumers brand recall in a purchase situation- depth & breadth of brand awareness Performance- What a brand does to meet customers' functional needs- intrinsic properties Imagery- Think abstractly than physically about brand, intangibles- extrinsic brand properties Judgments- Customer brand evaluation (performance+ imagery association)- brand opinions Feelings- emotional brand response/ reaction (mild/intense; +/-, or experiential / enduring) Experiential feelings (warmth, fun and excitement)- immediate & short-lived Enduring feelings (sense of security, social approval, self-respect), private, of day-to-day life

Resonance- Intense, active loyalty- customers feel a connect to brand, will miss it if it went away Nature of relationship, extent to which customers feel they are in sync with a brand Behavioural loyalty- repeat purchase rates Attitudinal attachment- intensity or depth of psychological bond customers have with a brand Active engagement- level of activity engendered by this loyalty Sense of community- extent to which customers seek brand info, events, loyal customers

Brand Positioning- Design firms offering & image to occupy distinct place in target customers mind Represent a distinctive big idea in the mind of the target market Identify different needs & groups in the market (segments) Target groups/markets it can satisfy in a superior way (targeting) Locate brand in the minds of consumers (positioning) Communicate (promotion) a value proposition to the target market that is distinctive, valuable & meaningful (differentiation)

Brand Ladder (How does a brand get into customers mind) Promise- Value proposition offered to customers, choice Affinity- Interest in the brand, differentials evident Brand Bonding- Perceived as delivering on promise Loyalty- +ve differential effect driving customer brand preference over identical competitive brands, willing to pay more /wait/ go places if unavailable Brand Equity- Brands financial value to the firm, includes sum total of factors besides sales. From a customers perspective, the reason why he chooses that brand over competition Promotional strategies revolve across various brand purchase stages Executing the brand identity

Brand identity- how company aims to identify or position brand. Built through logo, jingle, ads, celebrities, product trial, exposure etc. Label- post identity, brand remains a label in customers mind. Customer may not associate anything with the brand, nor be inclined to purchase it, yet may identify it, remember the ad, logo, celebrity, pack. Brand Image- how customer perceives the brand. What customer associates with the brand. Perception turns to position over time. Built by exposure to communications, word of mouth, product usage and experience, etc Brand congruence- Intended positioning (identity) should be congruent (match) with what exists in the consumers mind (image) Brand credibility- how well brand delivers on its promise Moov- Backaches, NokiaPerformance, Titan- value Brand Position- Distinct place or a deeper perception in the customers mind, achieved by exposure, association, usage, credibility. Positioning = combining internal (brand identity+ image) + outward brand expressions (guarantees, service, performance & packaging). The part of the brand identity and value proposition (central benefit) to be actively communicated to the target audience