BRAND MANAGEMENT

UNIT-I
INTRODUCTION
CONTENTS
DEFINITION
BRANDING CONCEPTS
SIGNIFICANCE OF BRANDS
DIFFERENT TYPES OF BRANDS
C0 BRANDING
STORE BRANDS
What is a Brand?
Name, term, sign, symbol, or design, or a
combination of them intended to identify the goods
and services of one seller or groups of sellers and to
differentiate them from those of competition. -
AMA
Not all products are brands.
Focus of Court et al. reading
Branding
Branding is the process by which companies
distinguish their product offerings from the
competitor.
It is the process of designing, planning and
communicating the name and the identity, in order
to build or manage the reputation of a brand



Why Brand?
Identify product
Reduce risk
Reduce consumer search cost
Signal quality
Legal protection
Create product associations
Differentiate product
1.6
Brands vs. Products
A product is anything we can offer to a
market for attention, acquisition, use, or
consumption that might satisfy a need or
want.
A product may be a physical good, a service,
a retail outlet, a person, an organization, a
place, or even an idea.

Four criteria for picking a good brand name
Fit the company or product image
A good brand
name should . . .
.
Describe product benefits
Be memorable, distinctive, and
positive
Have no legal restrictions
Product vs. Brand
A product is something
that is made in a factory

A brand is something that is
bought by a customer.
A product can be copied
by a competitor.
A brand is unique.
A product can be quickly
outdated.

A successful brand
is timeless.
Cont.
LEVELS OF PRODUCT
Core Product It is the fundamental benefit or service the
customer is really buying. E.g. A hotel guest is buying rest and
sleep.
Generic/Basic Product In this the hotel room includes a bed,
bathroom, towel desk, dresser and closet.
Expected Product At the third level the marketer prepares an
expected product a set of attributes expect a clean bed, fresh
towel, relative quietness.
Augmented Product - The customers desires beyond their
expectations providing a remote control television set, fresh
flowers, fine dining and room service.
Potential Product At the fifth level the potential product
encompasses future. E.g. the hotel guest finds a candy on the
pillow or a bowl of fruits or a video recorder with optional tapes.
LEVELS OF PRODUCT
Branding Strategies
Brand No Brand
Manufacturers
Brand
Private Brand
Individual
Brand
Family
Brand

Combi-
nation

Individual
Brand
Family
Brand
Combi-
nation
Manufacturers Brands Versus
Private Brands
Manufacturers
Brand
Private
Brand
The brand name of a manufacturer.
A brand name owned by a wholesaler or a retailer.
Also known as a private label or store brand.
Types of brand

There are two main types of brand manufacturer brands and own-
label brands.
Manufacturer brands
Manufacturer brands are created by producers and bear their chosen
brand name. The producer is responsible for marketing the brand. The
brand is owned by the producer.
By building their brand names, manufacturers can gain widespread
distribution (for example by retailers who want to sell the brand) and
build customer loyalty (think about the manufacturer brands that you
feel loyal to).
Private Label brands

Own-label brands are created and owned by businesses that operate
in the distribution channel often referred to as distributors.
Often these distributors are retailers, but not exclusively. Sometimes
the retailers entire product range will be own-label. Own-label
branding if well carried out can often offer the consumer
excellent value for money and provide the distributor with additional
bargaining power when it comes to negotiating prices and terms with
manufacturer brands.

Advantages of Private Brands
Earn higher profits
Less pressure to mark down prices
Ties customer to wholesaler or
retailer
Individual Brands Versus Family
Brands
Individual
Brand
Family
Brand
Using different brand names for different
products.
Marketing several different
products under the same
brand name.
Branding Policies
First question is whether to brand or not to brand.
Homogenous products are difficult to brand Branding
policies are:
I ndividual Branding: Naming each product differently
P&G, facilitates market segmentation and no overlap.
Overall Family Branding: All products are branded with
the same name, or part of a name, IE Nokia, promotion of
one item also promotes other items.
Line Family Branding: Within one product line.
COBRANDING
Co-branding, also called brand partnership, is when two companies
form an alliance to work together, creating marketing synergy. As
described in Co-Branding: The Science of Alliance:
Co-branding is an arrangement that associates a
single product or service with more than one brand name, or otherwise
associates a product with someone other than the principal producer.
The typical co-branding agreement involves two or more companies
acting in cooperation to associate any of various logos, color
schemes, or brand identifiers to a specific product that is contractually
designated for this purpose.

The object for this is to combine the strength of two brands, in
order to increase the premium consumers are willing to pay,
make the product or service more resistant to copying by private
label manufacturers, or to combine the different perceived
properties associated with these brands with a single product.
Types of Co-branding

i. Ingredient co-branding
ii. Promotional/Sponsorship Co-Branding
iii. Value Chain Co-Branding
Product Service Co-Branding,
Supplier-retailer, and
Alliance Co-Branding.
iv. Innovation-Based Co-Branding. Ex:Apple-Nike
v. Shared Product Equity Co-Branding

Ingredient Co-Branding
One or more of the brands
provides a distinctive ingredient
or component to the primary or
carrier brand. In this case, the
ingredient brand is subordinate
to the carrier brand.

Examples
Dell with Intel chips (ingredient
brand)
In all cases the ingredient brands
identity structure is subordinate
to the carrier brand in the co-
branded identity structure.

PROMOTIONAL BRANDING
VALUE CHAIN COBRANDING
PRODUCT SERVICE COBRANDING
SUPPLIER-RETAILER
ALLIANCE CO-BRANDING
1. Coca-Cola

$67,000 million
Based in U.S.
Flagging appetite for soda has cut demand for Coke, but the
beverage giant has a raft of new products in the pipeline that
could reverse its recent slide.

2 Microsoft
$56,926 million
Based in U.S.
Threats from Google and Apple haven't yet offset the power of its
Windows and Office monopolies.

3 IBM

$56,201 million
Based in U.S. Having off-loaded its low-profit PC
business to Lenovo, IBM is marketing on the strategic
level to corporate leaders.

4.GE

$48,907 million
Based in U.S. The brand Edison built has extended its reach from
ovens to credit cards, and the "Ecomagination" push is making GE
look like a protector of the planet.
5.Intel

$32,319 million
Based in U.S. Profits and market share weren't the only things
slammed by rival AMD. Intel's brand value tumbled 9%, as it
loss business from high-profile customers.
6.Nokia
$30,131 million
Based in Finland .Fashionable designs and low-cost
models for the developing world enabled the mobile
phone maker to regain ground against competitors.
7.Toyota

$27,941 million
Based in Japan. Toyota is closing in on GM to become
the world's biggest automaker. A slated 10% increase
in U.S. sales this year will help even more.
8. Disney

$27,848 million
Based in U.S. New CEO Robert Iger expanded the brand by
buying animation hit-maker Pixar and beefing up digital
distribution of TV shows through the Internet and iPods.

9.McDonald's

$27,501 million
Based in U.S. A new healthy-living marketing campaignand
the premium-priced sandwiches and salads that came with
ithave led to a fourth year of sales gains.

10.Mercedes-Benz
$21,795 million
Based in Germany The new S-Class sedan and M-Class
SUV are helping repair a tarnished quality reputation.
High costs and weak margins will take longer to fix.

SIGNIFICANCE OF BRANDS
Importance of Brands to Consumers
Identification of the source of the product
Assignment of responsibility to product maker Choice
Risk reducer
Search cost reducer or shopping efficiency
Promise, bond, or pact with product maker
Symbolic device or relevance
Signal of quality and satisfaction

1.44
Reducing the Risks in Product Decisions
Consumers may perceive many different types of risks in buying
and consuming a product:
Functional riskThe product does not perform up to expectations.
Physical riskThe product poses a threat to the physical well-being or health
of the user or others.
Financial riskThe product is not worth the price paid.
Social riskThe product results in embarrassment from others.
Psychological riskThe product affects the mental well-being of the user.
Time riskThe failure of the product results in an opportunity cost of finding
another satisfactory product.
1.45
Importance of Brands to Firms
To firms, brands represent enormously valuable pieces of legal property, capable of
influencing consumer behavior, being bought and sold, and providing the security
of sustained future revenues.
Identification to simplify handling or tracing
Legally protecting unique features
Signal of quality level
Endowing products with unique associations
Source of competitive advantage
Attract loyal set of customers
Source of financial returns
Tool for implementing profitable segmentation e.g. P & G, Unilever
1.46
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 (BRU), bath soap (HAMAM), flour (Gold Medal),
salt (TATA), pickles (AACHI), bananas (Chiquita),
chickens (KFC), and even water (AUAFINA)
1.47
What is branded?
Physical goods
Services
Retailers and distributors
Online products and services
People and organizations
Sports, arts, and entertainment
Geographic locations
Ideas and causes
Brand Management
Brand management is the act of designing and
implementing marketing programs to build and
maintain brand equity.
Product
Price
Distribution
Communications
BRANDING AND
BRAND MANAGEMENT
Brand
Manufacturers
Brand
Private Brand
Individual
Brand
Family
Brand
Individual
Brand
Family
Brand
Multi-brand multi-product multi-brand multi-product
Greater loyalty

Less vulnerability to competitive
marketing actions and crises

Larger margins

More elastic response to price
increases

More inelastic response to
price increases

Increased marketing communica-
tion efficiency and effectiveness

Possible licensing opportunities

More favorable brand extension
evaluations
Figure 2-9
Building Customer-Based Brand Equity
TOOLS AND OBJECTIVES KNOWLEDGE EFFECTS BENEFI TS
Choosing Brand Elements (4)
Brand name
Logo Memorability
Symbol Meaningfulness
Character Transferability
Packaging Adaptability
Slogan Protectability
Brand Awareness (3)
Possible Outcome
Brand Associations (3)
Developing Marketing Programs (5 & 6)
Leverage of Secondary Associations (7)

Depth Recall
Recognition

Breadth Purchase
Consumption
Strong Relevance
Consistency

Favorable Desirable
Deliverable

Unique Point of parity
Point of difference
Product Functional & symbolic benefits
Price Value perceptions
Distribution channels Integrate Push & Pull
Communications Mix and match options
Company
Country of origin
Channel of distribution Awareness
Other brands Meaningfulness
Endorsor Transferability
Event
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