Brand Management

What is a brand ?

What a brand means to common person ? In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The Coca-Cola brand has the power to actually change an individual's taste! Coca-cola is the no.1 brand in the world. The first shape that was registered is the coca cola bottle.

Brand
A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service It is the sellers promise to deliver the same bundle of benefits/services consistently to buyers

Brands are much more than logos

What is a brand ?
(1) Products and services have become so alike that they fail to distinguish themselves by their quality, efficacy, reliability, assurance and care. Brands add emotion and trust to these products and services, thus providing clues that simplify consumers choice. (2) These added emotions and trust help create a relationship between brands and consumers, which ensures consumers loyalty to the brands. (3) Brands create aspirational lifestyles based on these consumer relationships. Associating oneself with a brand transfers these lifestyles onto consumers. (4) The branded lifestyles extol values over and above the brands product or service category that allow the brands to be extended into other product and service categories. Thus saving companies the trouble and costs of developing new brands, while entering new lucrative markets. (5) The combination of emotions, relationships, lifestyles and values allows brand owners to charge a price premium for their products and services, which otherwise are barely distinguishable from generics.

Brand Elements
Brand names

CHP: 9&12&13&20-6

URLs

Slogans

Elements Logos

Characters

Symbols

Brand Elements

20-7

Companies often create product icons to develop an identity for their products. Many made-up creatures and personalities, such as Fido and Zozo are widely recognized figures.

Brand Elements
Brand mark the part of the brand that is a symbol or brand name it may include distinctive coloring or lettering. It usually is not spoken

20-9

Brand Elements Sometimes it is only a music or jingle

CHP: 9&12&13&20-10

Brand Element Choice Criteria

Memorable Meaningful Likeability Transferable Adaptable Protectible

Types of Brands
National Brands owned and initiated by manufacturers. Ex: General Electric, Heinz, and Motorola. When consumers buy food products, they buy manufacturer brands nearly 75 percent of the time.

 Private Distributor Brands also called Private Brands, Store Brands, or Dealer Brands owned and initiated by wholesalers and retailers. Ex: Radio Shack and Kmart, Craftsman, Kirkland This type of brand can be controlled by retailers and it yields the highest profits.

 Generic Brands represent a general product category and do not carry a company or brand name. The packaging only describes the product pancake mix or paper towels
Often priced below branded products

Brand Equity
When a commodity becomes a brand, it is said to have equity. The premium a brand can command in the market The difference between the perceived value and the intrinsic value

Brand Power
Customer will change brands for price reasons Customer is satisfied. No reason to change. Customer is satisfied and would take pains to get the brand Customer values the brand and sees it as a friend Customer is devoted to the brand

Brand Equity Competitive Advantages

Reduced marketing costs Trade leverage Can charge a higher price Can easily launch brand extensions Can take some price competition

Managing Brand Equity

Brand Equity needs to be nourished and replenished. We must not flog the brand for equity to be diluted or dissipated Store brands

Advantages of branding
Easy for the seller to track down problems and process orders Provide legal protection of unique product features Branding gives an opportunity to attract loyal and profitable set of customers It helps to give a product category at different segments, having separate bundle of benefits It helps build corporate image It minimises harm to company reputation if the brand fails

Brand parity
Consumers buy from a set of acceptable/ preferred brands

Umbrella Brand
Products from different categories under one brand Dangerous to the brand if the principal brand fails Sometimes the company name is prefixed to the brand. In such cases the company name gives it legitimacy. The product name individualises it.

Naming the Brand

Product benefits Product qualities Easy to pronounce Should be distinctive Should not have poor meanings in other languages and countries

CHP: 9&12&13&20-22

Four Brand Strategies

Product Category Existing Existing Brand Name Line Extension New

Brand Extension

New

Multibrands

New Brands

Brand strategy
Line extension existing brand name extended to new sizes in the existing product category Brand extension brand name extended to new product categories Multibrands new brands in the same product category New brands new product in a different product category Cobrands brands bearing two or more well known brand names

Branding Strategies
Line Extension uses an existing brand name for an improved or new product in the product line.

Branding Strategies
Brand extension brand name
extended to new product categories Brand Dilution occurs when the original brand loses its strength in brand identity because it has been stretched to too many products.

Branding Strategies
Multibrands new brands in the same product category

Branding Strategies
New brands new product in a different product category

Branding Strategies
Co-brands combines one or more brands to increase customer loyalty and sales for each individual brand. Ex: Starbucks Coffee opens outlets in Barnes & Nobel Bookstores
hp-Compaq

Brand Repositioning
This may be required after a few years to face new competition and changing customer preferences