MODULE-1

Brand Fundamentals

Prof. Anand Narasimha

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In this Module we will learn about

Introduction to Brands- what is a brand, business
significance of brands, needs & benefits, brand awareness
and preference
Brand Positioning- concepts, types and formats
Brand Personality -values, semiotics, metaphors and
archetypes
Brand Equity- concepts & formats
Brand Loyalty- concepts & principles
Kapferer Brand Identity Prism- framework & caselet
Unilever Brand Key- framework & caselet
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Understanding the Basics of Branding

How much will you pay for these

A rock picked up from the street

A rock from the Great Wall of

China

A rock from the Berlin Wall

A rock from the Moon

Congratulations!
You just branded rocks.

Introduction to Brands

10

A Brand Story
The Buggy Whip

The Railroads

The Airlines
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Moral of the Story

Brand Marketing is not about products, services or processes.
Its about understanding & satisfying consumer needs, profitably.
Products & Processes are only the means, the end is the consumer need.
Brands which lack this vision, dont last

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 In our factories we make products,

in the supermarket we sell hope.
- Charles Revson, Founder of Revlon

I clothe egos.
- Gianni Versace, Fashion Designer

Were not in the watch business!

Were in the luxury business.
- President of Rolex

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Is NOKIA in the cell phone business?

NOKIA in 2050?
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In the year 2050,

water will only be available for drinking
and not for bathing or washing.
How will a Shampoo brand still keep itself relevant?

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What is a Brand?
The unique combination of product characteristics and
values, that have become attached to a product by
means of its name, packaging, advertising, pricing,
usage experience etc.
These differentiate it
from competitive brands in the consumers view.
A brand offers a benefit that fulfills a consumer need ,
in a way that is unique and different from
others.
A mixture of tangible and intangible
attributes,symbolized in
a trademark,which if
properly managed,creates preference
and
generates value.

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What is a Brand?
A Brand is a collection of images,
thoughts and feelings in persons mind

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Brand is a Two-way Pact

In return for your preference and loyalty, we

will give you a shortcut to the best purchase
decision.
We also understand that if we screw up,
the deals off!

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Your brand is what

people say about it,
when youre not there.
Jeff Bezos, Founder Amazon

Total Impression of a Brand

Users
Usage

Competitors

Distribution
Display

Products
Maker
History

BRAND

Price

Name
Packaging
Advertising
Promotion

Environment
Associations
People
WOM

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Manage
Perceptions

Create
Value: for
consumers/
stakeholders

Brandin
g

Drive Actions

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Lee Clow- Founder & Creative Director, Chiat-Day

Managing your brand marketing

is becoming more and more about
managing everything your company
does.

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Business Significance of Brands

Type of Society
Pre-industrial
Industrial
Post Industrial

Source of Wealth
Land & Labor
Factories & Capital
Brands & Ideas

The Brand is the Business!

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Any other definitions of a Brand?

Is IPL a Brand? Why/why-not?

Whats the anti-brand school of thought?

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Benefits/Needs

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Brand Benefits
Benefit fulfills a need.
Benefit belongs to the brand.
Need resides with the consumer.
Functional benefits : physical, tangible, real.
Color, Flavor, Shape, Size, Price.

Non-functional benefits : emotional/sensory,

intangible, perceived. Gentle, Caring, Sexy, Glamorous,
Macho
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Brand Benefits
Motivators : The reason why people buy a
product type/category
Soap gets you clean. A pen writes. A camera takes pictures.

Discriminator : Difference between brands,

functional or non-functional
Functional discriminator
Soap with deodorant. Soap with cold cream. Soap
with Olive Oil.

Non-functional discriminator
Indulgent, glamorous soap. Macho, hardworking soap.
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Benefit Map

POD

Cologne
Green
Rich Lather
Macho
Sexy
Young

Cake
Cleans
Price

Reputed Maker
Attractive Pack

Non-Discriminating

Points
of
Difference

Discriminating

Functional

Points
of
Parity
POP

Non-Functional
Lets do a Benefit Map for a Brand
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Types of Needs / Benefits

People
want to ..
SEEK health, time, money, popularity, better appearance,
security, praise, comfort, leisure, pride, advancement,
acceptance, enjoyment, self-confidence, prestige, status.

BE

good parents, social, hospitable, up-to-date, creative,

influential, gregarious, efficient, trend setting,
authorities, house-proud.

DO

express their individuality, resist domination, satisfy curiosity,

emulate idols, appreciate beauty, acquire/collect things,
win affection/love, improve themselves.

SAVE time, money, work, discomfort, worry, doubts, risks,

embarrassment.
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Examples of brands/ads that target the various types of needs?

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Brand Awareness, Salience

& Preference

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Brand Awareness & Salience

Total Awareness

Aided Awareness

Unaided
Awareness
TOM
(top-of-mind)
Awareness

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Brand Awareness & Salience

Brand Awareness
Percentage of consumers/prospects who
recall the brand within a category
TOM is the critical measure spontaneous
recall/
top 3 mentions.
Brand Salience
Brands that come to mind at the time of
purchase
Share-of-mind

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Brand Preference
Preference Share
Percentage of consumers intending to buy your brand in their
next purchase. Also known as stochastic share
Market Share
- Percentage of consumers who actually buy your brand
- Brand sales as a percentage of total category sales
- By volume (units/tonnage) By value (Rupees / $)

Market Share is a subset of Preference Share

What can we conclude :

If a brands preference share & market share are nearly
equal?
If a brands preference share is significantly higher
than its
market share?

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Brand Repertoire Theory :

The Shortlist Principle

People dont always consider only one brand in a category.

They have a shortlist of acceptable brands (3 to 4),
within which they buy. A brand repertoire.

Brands may remain, enter or exit this shortlist over time.

Brand Task
- Enter repertoire and stay in it.
- Stimulate higher
share of repertoire purchases.

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Brand Decision Matrix

TOTAL SET

AWARE SET

CONSIDERED SET

CHOICE SET

A
B
C
D
E
F
G

A
B
C
D
E
F

A
B
C
D

G
UNAWARE SET

E
F

B
C
D
NON-CHOICE SET

INFEASIBLE SET

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Brand Positioning

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Brand Positioning
Unique, clear, desirable slot that a brand occupies in the
consumers mind, relative to competing brands.

WHAT?
Key Benefit

WHY?
Key Support

WHOM?
Key Target Group
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Unilever Format
Who am I?
Why buy me?
What do I do that others dont?
Why should you believe me?

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 Who am I?
The Babe-Magnet

Why buy me?

What do I do that others
dont?
I make regular guys sexually
irresistible to hot young
women
Why should you believe me?
Because my fragrances are so
seductive and tempting

Lets do one more

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Greys Format
XYZ (Brand Name) is a (product descriptor)
that is better than (competition),
for (target group), because (core benefit),
as a result of (support).

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Colgate Dental Cream is a family toothpaste

that is better than other family toothpastes
like Pepsodent, for active growing kids,
because it makes their teeth stronger
as a result of its calcium formulation and
dentist recommendation

Lets do one more

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One Word Equity (O.W.E) Saatchi &

Saatchi
What lies at the heart of the brand?
What makes it unique?
A single word to encapsulate the essence of
the brand.
Combines brand attributes & benefits, values
& personality to arrive at a single, simple idea.
Provides a blue-print for brand marketing
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Volvo- Safety

Ferrari- Edgy

BMW- Driving Pleasure

What are the OWEs of some other brands?

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BRAND CONSTRUCT

FUNCTIONAL REALITY
Key reason-to-believe this.

BRAND CORE
Core benefit that the
brand offers me.

EMOTIONAL EQUITY
Role of the brand in my life.

BRAND CHARACTER
Values that the brand
stands for.

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BRAND CONSTRUCT

FUNCTIONAL REALITY
Key reason-to-believe this.

Proven
germ-killing action

BRAND CORE
Core benefit that the
brand offers me.

Protection
from germs

EMOTIONAL EQUITY
Role of the brand in my life.

Keeping you
& India healthy

BRAND CHARACTER
Values that the brand
stands for.

Healthy
Smart
Hardworking
Efficient

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BRAND CONSTRUCT

FUNCTIONAL REALITY
Key reason-to-believe this.

Refreshing, uplifting
fragrances

BRAND CORE
Core benefit that the
brand offers me.

EMOTIONAL EQUITY
Role of the brand in my life.

Unstoppable Masti
Long-lasting
Freshness

BRAND CHARACTER
Values that the brand
stands for.

Fun
Zesty
Tribal
Trendy

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Lets do a Brand Construct

for another brand

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Positioning Varies
Across competing brands

Luxury

Fashion

Sport

Across time for a single brand : Repositioning

Home Remedy

Health Food

Medicine Chest

Dinning Table

Across consumers for a single brand

at a given time

Confidence

Convenience

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Types of Positioning
By Product Benefit

Tasty and Healthy Eating

For Strong Hair

By Application / Occasion

As a Dessert Ingredient

For Festive Occasions

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 By User Group

For the Jean Generation

For the Jugadu youth

By Cultural Symbolism

Cowboy- a symbol of American Machismo

Chocolate- riding on sweets as a symbol of

an auspicious beginning in Indian culture

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 By Price-Quality

Good food costs less at Sainsburys- great price value

Snob value- exclusive and premium

By Product Category/Type

Creating an anti-category- Uncola

Becoming generic to a category

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 By Competitor

AVIS V/S HERTZ- Repositioning the competition

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Give other examples of each of

the types of positioning

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Brand Personality

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Brand Personality
Sum total of a brands impression = Brand Personality.
Consumers buy a brand not only for what it does, but
who it is?
Brand as a friend / person = Brand Personification.
Personality is a Gestalt (whole is more than the sum of
its parts) of the brands values. It differentiates brands.
It makes consumers relate to the brand.

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Brand Values
Rational

Sensory

Emotional

Appeals
to the
reason
(Beliefs)

Appeals
to the
senses
(Reactions)

Appeals
to the
emotions
(Feelings)

sensible,
practical,
hardworking,
affordable
efficient

stylish,
sizzling,
tasty,
attractive

warm,
caring,
fun,
exciting,
trendy,
trusted

Symbolic
Appeals
to the
Self- image
(Associations
)
aspiring,
status,
cult figure,
macho

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Personality can be expressed as a metaphor

Taj Mahal Tea Bags

The Walkman of Teas

Axe Deo
The Babe Magnet

Cyrus Broacha
The Rajah of Rubbish
Meera Herbal Shampoo
from Khadi Bhavan
to Fab India
IKEA Furniture
Champagne on a Beer budget

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Lets try and express the personality

of some other brands as a metaphor

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Brand Sensorials
Sight. Sound. Scent. Touch.
Taste.
The five senses, portals to our
emotions
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Brand Semiotics
Semiotics is about how brands communicate and express
themselves through symbols and signs
Its about the symbolic meaning through various codes, signals
and cultural contexts that consumers associate with brands
It is a brands sign language
Semiotics create sensory engagement with the brand

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What do these symbols mean to you?

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Brand Personality- Checklist

Is our brands personality unique and
differentiated?
Is it authentic and real?
Does it energize and excite?
Does it create value?
Does it strike images in the targeted
customers mind, ones that resonate and
motivate preference?
Does it bring to life the brands promises,
products, services, and experiences?

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The 12 Archetypes
Any brand in the world falls under one of
the
12 archetypes
What is your brands current archetype?
Is there a need to stay with it or do you
wish to change it to something else?
As we go along, lets talk about Indian brands/persons
reflecting each archetype

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The Magician
It can happen!

Core Desire: knowledge of how the world or

universe works
Goal : make dreams come true
Strategy: develop vision and live it
Gift: finding win-win outcomes
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Rules are meant to be broken.

The Outlaw

Core Desire: irreverence or

revolution
Goal: to destroy what is not
working
Strategy: disrupt or shock

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The Creator
If it can be imagined, it can be created.

Core Desire: create something of

enduring value
Goal: give form to a vision
Strategy: develop artistic control and
skill
Gift: creativity and imagination

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The Sage
The truth will set you free.

Core Desire: the discovery of truth

Goal: to use intelligence and analysis to
understand the world
Strategy: seek out information and knowledge
Gift: wisdom, intelligence

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The Ruler

Power isnt everything. Its the only thing.

Core Desire: command and control

Goal: create a prosperous company or
community
Strategy: exert leadership
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The Regular Guy/Gal

All men and women are created equal.

Core Desire: connection with others

Goal: to belong, fit in
Strategy: develop simple-solid virtues, the
common touch
Gift: realism, empathy, lack of pretense

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The Lover
I only have eyes for you.

Core
Desire:
attain intimacy and experience
sensual
pleasure
Goal: being in a relationship with the people and
experiences
Strategy:
every way

become more and more attractive in

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The Jester
If I cant dance, I dont want to be part of your
revolution.

Core Desire: to live in the moment with full

enjoyment
Goal: to have a great time and lighten up
the world
Strategy: play, make jokes, be funny

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The Caregiver
The world needs me.

Core Desire: protect people

from harm
Goal: to help others
Strategy: do things for others
Gift: compassion, generosity

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The Innocent
Free to be you and me.

Core Desire: to experience the simple

pleasures of life
Goal: to be happy and kind
Strategy:

do things right and stay out of

the fast lane

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The Hero
Where theres a will theres a way.

Core Desire: prove ones worth through

courageous action
Goal: exert mastery in a way that improves the
world
Strategy: become strong, powerful and

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The Explorer

Dont fence me in.

Core Desire: the freedom to find out who you are

through exploring the world
Goal: to experience a better, more fulfilling life
Strategy: journey, seek out and experience new
things,

escape from entrapment

Gift: autonomy, ambition, free-spirit

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FREEDOM

EXPLORER
OUTLAW

JESTER

CREATOR
LOVER

SOCIALLY DRIVEN

INNER DIRECTED

CAREGIVER

HERO

MAGICIAN

REGULAR GUY

RULER
SAGE

ORDER

INNOCENT

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Brand Equity

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Brand Equity
Tangible, quantifiable, monetary value of a brand
Based on its loyalty, awareness, perceived quality, strong
associations and other assets like patents, trademarks,
channel relationships.
Brand as an asset on the balance sheet with a financial value.
Companies with strong brands seem to deliver greater
shareholder value.
Brand Value forms a significant share of companys
market valuation.

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Top Global Brands-2015

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85

IDQV - Interbrand
Impact
Differentiation
Quality
Value

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88

Aakers
Brand
Equity
Model

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Brand Loyalty

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Brand Loyalty
Paretos Law : 80 20 rule

20

80

80

20

Market

Users

- 20% of users constitute 80% of the market

Consumers who buy your brand most frequently and

stay with it (do not switch easily) are Brand Loyal.
It is 5 times more expensive to get a new customer
than retain an existing one.

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Types of Users
By quantity of use :
By frequency of use
By usage status
Potential

Light, Medium, Heavy

:

Occasional, Regular

: Non, Lapsed, Current, Intending,

First-time,Repeat

Brands with high loyalty tend to have more of heavy, regular,

current, repeat users (for FMCGs) and high share of
Intending Buyers (for Durables).

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A Transit Shampoo

Analysis of the brands usage patterns revealed that the brand

had a large proportion of occasional users (60%+)who used the brand only when they had a dandruff problem
and lapsed out once the problem was fixed.
These users saw H & S only as a clinical, anti-dandruff shampoo
and went back to their sexier, cosmetic shampoos after
getting rid of their dandruff.
This was making the brand suffer from not having a large enough base
of regular users, leading to weak loyalty.
The brand task was evident- how to convert a majority of these
occasional users into regular users.
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Loyalty Ladder
Champions the Brand

Advocate & Spokesman

Core Group
Likes the Brand

Satisfied Buyer

Frequent Buyer

No Loyalty

Committed buyer

No reason to change

With switching cost

Switcher,
Price-driven

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Loyalty Grid - FCB

CATEGORY INVOLVEMENT

Hi
Perfumes
Insurance

BRAND
LOYALTY

Hi

PREMIUM LOYALTY

Lo

Lo
Tea
Detergent
INERTIA LOYALTY

Holidays

Bulbs

Watches

Match Box

LATENT LOYALTY

WEAK LOYALTY

More examples of categories which depict the above

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The 4 Pillars of Brand Strategy

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Sir John Hegarty, Founder BBH

Were not here to sell.

Were here to make people want to buy.

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Watch this video and relate the concepts you have learnt to this ca
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businesscasestudies.co.uk/diesel/live-breathe-and-wear-p
assion/introduction.html#axzz3aBN93TAL

Learn more about Diesel by reading the case given in the link

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https://www.youtube.com/watch?v=y06qONlELGM

Watch this video and recap the concepts we have discussed in cla
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