 Christies Auction 2000

 Actress Judy Garland’s slippers from

‘Wizard of Oz’, was sold for over $80,000
(actual cost $12.50)
 Actor Christopher Reeve’s Super Man suit
fetched over $30,000.
 ‘Gilligan Island’s’ skipper hat was sold for
$8,000.

 It is the celebrity associations that led to such high prices

for these items which are otherwise trivial cost wise.
Brand Management
An Introduction
 Definitions of Brand

 American Marketing Association (AMA) -

A brand is a name, term, sign, symbol or

design or a combination of them ----- to
identify the goods and services of one seller
from those offered by another.
 Branding is all about creating differences
 Brand Elements – key to creating a brand.
 Choose a Name

 Logo

 Symbol

 Package

 Design

 or other attributes that distinguishes the product.

Definitions of Brand
 One of the most popular and potentially
important marketing concepts to arise in the
1980’s was the concept of Brand Equity.
 Fundamentally, branding is all about
endowing products and services with the
power of brand equity.
 The brand equity concept stresses the
importance of the role of brand in marketing
strategies.
 Why Do Brands
Matter?
Advantages of Branding to
consumers and also to firms.
ROLES THAT BRANDS PLAY
 Advantages for Consumers
 Identification of source of product: assignment of
responsibility to product maker. Past experiences and marketing
programmes help consumers to learn about brands and provide as a
short hand device.
 Risk reducer: Functional risk, physical risk (user), financial risk,
social risk, psychological risk (mental well being) & time risk
 Search cost reducer: consumers already know about quality ,
product characteristics of the brand it enables lesser search for
solutions.
 Promise, bond or pact with maker of product: helps in
building relationships.
 Symbolic device: Benefits may not be always functional Brands
allow consumers to project their self image
 Signal of quality
 ROLES THAT BRANDS PLAY
 Advantages for Firms
 Means of identification: fundamentally they help in the
identification of product and helps in accounting and
administration / operations.
 Legal protection for the invention/ the unique
features of your product.
 Signal of quality level to satisfied customers.

 Means of endowing products with unique

associations
 Source of competitive advantage
 Source of financial returns
 Three Levels Of Product (Old)

Installation
Core Product
Packaging
Brand
Name

Core
Features
benefit
or Warranty
service

Delivery &
Credit Quality Styling

Tangible
Product After sales Augmented
service Product
 Brand vs. Product
 Kotler defines 5 levels to a product (Air-conditioner)
 The Core Benefit (cooling & comfort)
 Generic product (Sufficient cooling capacity (ton), economic
electricity consumption, adequate fresh air intake etc)
 Expected product: (Adjustable cooling speeds, adjustable
louvers, removable air filters, aesthetic panels/looks, parts
& service warranty, split unit, non Freon refrigerant gas etc.)
 Augmented Product: Electric touch pad controls, display to
shoe indoor and outdoor temperature, automatic mode to
adjust temp based on outside temp. – personal liking)
 Potential product: Cooling balanced throughout room, low
price, low energy consumption.
 Five Levels Of Product

Expected Product Differentiation

Product
Common Core
Attributes Product

Brand Brand Basic Superior

Persona Name Features value
Potential Payment
Product Core terms /
Latest Benefit Credit
Style
Brand
Loyalty Image
Club Warranty A.S.S

Augmented Basic
Product Product
CRM / Services
Brand vs. Product -2
 Kotler: Competition essentially takes place at the
augmentation level as most firms can successfully
build satisfactory products (expected level).

 Theodore Levitt: “The new competition is not

between what companies produce in factories but
---------------------------------------- between what they
add to their factory output in the form of packaging,
services, advertising, customer advice, financing,
delivery / logistics, warehousing and other things
which people value”.
Branding
A brand is basically a product, but one that
adds other dimensions that differentiate it
from other products designed to satisfy the
same need.
 These differences may be tangible and
rational, or can be symbolic, emotional and
intangible (but related to what the brand
represent).
 Brand vs. Product - 3
 What distinguishes a brand from its unbranded
commodity and gives it its equity ----- is the sum
total of consumers perceptions and feelings
----------
 about the product attributes and how they
perform
 about the brand name, brand associations and
what it stands for
 and about the company associated with it.
 Brand vs. Product - 4
 Coca-cola, Marlboro, Colgate: understood
consumer motivations & desires and
created relevant and appealing images
surrounding their products

 Often these intangible image associations

are the only way by which you can
distinguish different brands.
Brand vs. Product - 5
 Creating a successful brand entails blending all
these various elements together:
 The product/service will have to be of high quality
and appropriate to consumer needs
 The brand name must be appealing and in tune
with consumers perceptions about the product.
 Packaging, pricing, promotion and all other
elements must similarly meet tests of
appropriateness, appeal and differentiation.
Can Anything Be
Branded?
Branding Applications
 Physical goods
 Components – Intel, Material – Dupont,
Chicken – Purdue, Venky’s etc.
 Services:

 American Express, FedEx, Marriot Hotels,

AC Nielsen, Goldman Sachs.
 Online Products & Services

 Google, Yahoo, Amazon.com, Bazee.com,

e-bay
Branding Applications
 People & Organizations
 Amitabh Bachan, Beckham, Michael Jordan
 Tata Steel, Infosys, Genpact
 Retailers & Distributors
 Wall-Mart, Sears, Metro, Mearsk,
 Geographic Locations
 Kerala, Singapore
 Ideas & Causes
 World Wild Life Fund
Commodity To Brand
 Marketers can benefit from branding whenever
consumers are in a choice situation.
 A commodity is a product so basic that it
cannot be physically differentiated in the minds
of consumers.
 Number of product categories that were seen
one time as commodities have seen the
emergence of highly differentiated brands.
Branding
 Brands are something that resides in the
minds of consumers ……..
 (include all other perceptions such as their
fantasies etc.)

 Branding (endowing products/services with

the power of brand) – Its all about creating
differences.
Branding
 The key to branding is that consumers must
be made to think that all brands in the
category are not the same.

 Itinvolves creating mental structures &

helping consumers organize their knowledge
about products/services which provides clarity
for customers in decision making.
 Brand as a short-hand
Branding
 Brand differences are often related to attributes
or benefits of the product itself. Gillette, Birla-White,
3M, Harpic, Surf, Colgate, LG-Golden Eye, Samsung,
Kelvinator, Godrej PUF etc.
 Other brands create competitive advantages
through non product related means. Pepsi, Lux,
Marlboro, Kingfisher, Onida, Boomer, M. Dew
 They have understood consumer motivations &
desires and created appealing images around
their products.
 Brand Promise
A brand is essentially a marketer’s promise
to provide predictable product or service
performance.
 Brand promise is the marketers vision of what
the brand must be and what it should do for the
consumers.
 True value and future prospects of a brand lies
with the customers.
 Their knowledge about the brand and their likely response
to company’s marketing activities which again will be based
on brand knowledge.
 Building Strong
Brands
What are the core aspects involved in
developing strong brands?
Models of Aaker, Kapferer & Keller
 BRAND ANATOMY
 David Aaker’s work on Brand personality leads
to Brand anatomy.
 It consists of an innermost level which is termed
as the “essence”.
 Followed by the next outer level, the “benefits”
and the final level, the “attributes”.
 David Aaker seems to treat essence to be
synonymous with Brand personality.
 Essence is the basic idea behind the brand

 When a brand is configured, it is important to get

its essence first.
BRAND ANATOMY -1
 Essence is the basic idea behind the brand.
 This essence translates into benefits .
 These benefits should be converted to specific
attributes.
 Ultimately it is these benefits and attributes that form
what he calls Brand Anatomy.
 For instance essence of a brand like Close-up is youth.
(Typically toothpaste uses the plank of dental health –
prevents cavities, dental decay prevention etc.).
 This essence translates into benefits like joy, fun,
energy & modernity.
 BRAND ANATOMY -2
 Close Up- Brand anatomy:
 The above mentioned benefits gets reflected in the attributes
of the product.
 The bright packaging of Close-Up signals modernity. Also the bright
colour and the gel reflect youth.
 The endorsement of close up Anthakshari is the celebration, joy and
energy dimension of the brand.

Bright Bright colour

Attributes
packaging
Benefits
Fun Gel
Energetic (Youth)
Essence
Soft squeeze Joy
tube Modern Price

Endorsement of
Anthakshari
BRAND ANATOMY – 3
(Compiled YLR Moorthy)

Brand Essence Benefits Attributes

Coorg Coffee 100% Coffee Purity No Chicory

Little Hearts Romance Fun Heart shaped

Marlboro Macho Socially admired Strong tobacco

Mohawks shoe Modern Comfort Casual wear

Pepsi Youth Merriment Fizzy drink

Impact Bicycle Rebellion Trendiness Sleek Body

Elanza luggage Top-of-the-line Sophisticated Premium quality

Brand Identity Prism
Jean Noel Kapferer
 BRAND IDENTITY
 KAPFERER’S FRAMEWORK
 KAPFERER arranges elements of brand identity as a sum of
certain tangible and intangible elements.
 Both Aaker and Kapferer describe brand personality as a subset of
brand identity.
 Brand Identity Prism
Picture of sender

Physique Personality
Externalization

Internalization
Relationship Culture

Reflection Self-Image
Picture of recipient
 BRAND IDENTITY PRISM -2

 Elements of the Brand Identity prism

 Kapferer represents brand identity as a six sided
prism
 Six faces of the prism are

 1.Physique 2.Personality 3. Culture,

4.Relationship 5.Reflection & 6. Self Image.
 Physique: is the basis of the brand.
 The physique of Philips is technology and
reliability, while for the brand Tata it is trust. MRF it
will be strength & reliability.
 Brand Identity Prism -3

 1. Physique
 Brand first of all physical specifications &
qualities. It is brand’s back bone the tangible
values added.
 If brand is a flower then stem is its physique.

 Traditionally branding works on positioning

the product relying on certain key product
and brand attributes /benefits.
Physique

 The first step in defining a product is to

define its physical product – what is it
concretely? What does it look like? What
does it do?
 Picture of famous coca-cola bottle in its
cans.
 By showing the traditional bottle, coke
aims to remind us of its roots.
 Brand Identity Prism -2
 2. Brand Personality:
 It answers the question, “what happens to
this brand if it became a person”.
 It can be human being or animated objects
or animals.
 Brand has a personality. By communicating it
gradually builds up character.
 Highly used in advertising to bring / project
all the intangibles associated with brand.
Brand Personality:

 Ithas been the main focus of advertising

since 1970’s.
 Easiest way to creating personality is to
have a brand spokesperson.
 Brand identity is the personality facet of
the source. It should not be confused with
Self image which is a portrayal of the ideal
receiver.
 BRAND IDENTITY PRISM -5
 3. Culture :
 Brand is a culture. Every product do
represent this culture it derives & is a means
of communication.
 It is the set of values feeding the brand’s
inspiration. It refers to the basic principles
governing the brand in its outward signs.
 Mercedes embodies German values. Order prevails
even at 260 km/hr – landscape may be whizzing by,
but the Merc remains stable and unperturbed.
Culture

 Culture is what links a brand to the firm

when both share the same name.
 Because of its culture Nestle has not
succeeded in conveying the image of a
fun & enjoyable brand.
 Maggi does not carry Nestle Logo.
 Culture
 Symbolizes the organization, its country-of-origin
and the values it stand for.
 India is known for its traditional remedies which is
why Balsara, Dabur, Zandu evoke a good
response abroad.
 Germany for its precision engineering, Japan for
consumer electronics and US for services.
Mercedes Benz, Hitachi, Fed Ex, MC-Donald’s
benefit from this.
 IBM, Coca-cola, Nike and Levis stands for
American culture.
Culture

 Brand culture plays an essential role in

differentiating the brand. This facet is the one
that helps to differentiate the luxury brands the
most because it refers to their source.
 Calvin Klein's minimalism, and Benetton's
controversy orientation provide a set of values
and different from that of Esprit.
 Cultural facets is the key to understanding the
differences between Nike, Reebok and Adidas.
 BRAND IDENTITY PRISM - 4
 4. Relationship:
 A brand is a relationship. Indeed, brands are often
at the crux of transactions and exchanges
between people.
 Its the hand shake between the consumer and the
organization.
 The relationship with Colgate is one of depe-
ndebility (oral hygiene) and that with Saffola
edible oil is one of safety.
 Relationship
 This is particularly true for brands in the service
sector and also for retailers.
 Yves Saint Laurent brand functions with charm:
the underlying idea of a love affair permeates
both its products and advertising.
 Christian Dior’s symbolizes another type of
relationship: one that is grandiose, ostentatious,
the desire to shine like gold.
 Relationship
 This facet defines the mode of conduct that
most people will identify with the brand.
 The way the brand acts, delivers services and
relates to its customers.
 Nike suggests a peculiar relationship based on
provocation, it encourages us to let loose (let’s
do it).
 IBM symbolizes orderliness, while Apple
conveys friendliness. Moulinex defines itself as
‘the friend of women’.
BRAND IDENTITY PRISM - 5
 5. Reflection:
 The consumers perception of what the brand
stands for. Pepsi stand for young, while Coke
cuts across all age groups.
 When asked on views about car brands, people
immediately answer in terms of the brand’s
perceived client type…. For young people, for
fathers; for show off’s; for old folks etc.
 Brand will always tend to build a reflection or an
image of the buyer or user.
 Reflection
 Reflection and target (group) often gets mixed up.
 Target describes the brand’s potential buyer or
user.
 Reflecting the customer is not the target group.

 Customer should be reflected as he/she wishes to

be seen as a result of using the brand.
 Pepsi for instance has a much higher clientele than
the 15-20 year old, narrow segment which its Ads
projects. How can such a paradox be explained.
Reflection
 How can such a paradox be explained
 For the younger segment (8-14 year olds) Pepsi
embodies their dream, of what they want to be
when they grow up.
 Youth identifies with the heroes.

 For adults they represent a certain way of life

and of certain values rather than of a narrowly
defined age group.
 Thus the brands brings in 40 year olds also to
identify with this special way of life.
 Reflection
 The confusion between reflection and target is
quite frequent and causes problems.
 Many managers show in their ads - their
consumers as the way they are.
 Fallacy behind this is - Consumers indeed use
brands to enhance their identity.
 In the ready-to-wear industry, the obsession to
look younger should concern the brand’s
reflection, and not necessarily their target.
 BRAND IDENTITY PRISM - 6
 6. Self Image:
 Finally a brand speaks to our self image.

 If reflection is targets outward mirror, self image is

the consumers internal mirror.
 What the consumer thinks of himself. Mercedes
owner tells himself that as he belong to the elite he
is treating himself to the best car.
 Porsche owners simply want to prove themselves
that they have the ability to buy such a car.
Self Image
 Even if you don’t practice any sports, Lacoste
clients inwardly picture themselves as members
of an elegant sports club –
 An open club with no race, sex or age
discrimination but endows its members with
distinction.
 This works because sports is universal.

 When two Harley Davidson customers meet,

they can strike up a conversation immediately
 BRAND IDENTITY PRISM
 Mahindra Maxx - Brand Prism
 Physique : Tough, spacious and economy

 Personality: Family man - dependable

 Relationship: Companion traveler

 Culture: Family values (caring)

 Reflection / user image: Semi urban business man

 Self image: Prudent (Smart choice).

Components of Brand
Building Blocks
Customer Based Brand Equity
Model – Kevin L. Keller
Customer Base Brand Equity Pyramid

4. Relationships
(What about you & me?)
Resonance

3.Response
(What about you?)
Judgments Feelings

2. Meaning
Performance Imagery (What are you?)

1. Identity
Salience
(Who are you?)
 BUILDING A STRONG BRAND

 The Four Steps of Brand Building:

(Customer Based Brand Equity Model)
 They represent those basic questions that customers ask
about brands.
 1. Who are you? (Brand Identity) –
 Ensure identification of the brand in customers
minds by associating it with a particular product
class or need.
 2. What are you? (Brand Meaning) –

 Establish the Brand meaning in the minds of

consumers by strategically linking tangible and
intangible brand associations.
 BUILDING A STRONG BRAND -1
 The Four Steps of Brand Building:
 3. What do I think or feel about you?
(Brand Response)
 Elicit proper customer response to this brand
identification and brand response.
 4. What about you & me? (Brand Relationships)
 What kind of and to what degree of association I
like to have with you?
 Convert brand response to an intense, active
loyalty relationship between customers and the
brand.
 Brand Salience
 Achieving the right brand identity involves creating
brand salience with customers. It relates to aspects
of brand awareness.
 How easily & often the brand is evoked and the
circumstances leading to it? Is the brand at the top
of the mind or has it brand recall and brand
recognition?
 Brand awareness is not just knowing the brand. It
should link it with product/service category.
 Brand awareness provide identity by linking brand
elements to a product category and associated
consumption situations.
 Brand Salience
 The depth of brand awareness concerns the
likelihood and the ease at which a brand element
comes to the mind of the consumer.
 Breadth of brand awareness concerns the range of
purchase and usage situations in which the brand
element comes to the mind.
 A highly salient brand is one that has both depth
and breadth of brand awareness such that
customers make sufficient purchases and always
think about the brand across a variety of settings in
which it could possibly be consumed.
 Brand Performance
 The product itself is at the heart of brand equity.
Designing and delivering a product that fully satisfies
a customer needs/wants is a prerequisite for
successful marketing.
 Brand performance relates to the ways in which the

product or service attempts to meet customers more

functional needs.
 Brand performance transcends the ingredients and

features that make up the product / service to

encompass the aspects related to the brand that
augment these characteristics.
 Brand Performance
 Five important types of attributes and benefits
 1. Primary ingredients and supplementary features.

 2. Product reliability, durability & serviceability.

 3. Service effectiveness, efficiency and empathy.

 4. Style and design

 5. Price

 Some attribute are essential necessary for the

product to work, whereas other attributes are
supplementary features that allow for customization
or more personalized usage.
 Brand Imagery
 It deals with the extrinsic properties of the product or
service.
 Brand Imagery is about how people think abstractly

about the brand rather than what they think that the
brand actually do. It deals with the Intangibles.
 Refers more to the intangibles; 4 primary types are:

 1. User profiles

 2. Purchase & usage situations

 3. Personality & values

 4. History, heritage & experiences.

 Brand Imagery -2
 Brand imagery association based on the user type – may
result in a profiling of actual users or more aspirational or
idealized users.
 May be based on descriptive demographic factors (age,
gender, race, income) or more abstract psychographic
factors (lifestyle).
 Another set of associations is based on conditions when the
product should be bought and used.
 Purchase situation may be based on factors such as place
of buying (super markets, specialty stores) and ease of
purchase or any reward attached.
 usage based on when to use (time of year etc), occasion
(formal/informal; perk from home to outdoor snack) etc.
 Brand Imagery - 3
 Brands may also take on personality traits.
 Brand like a person can be characterized as being
modern, old fashioned, lively, exotic etc.
 Advertising is most influential in creating brand
personality as it can project the brand in the
usage/user based situation.
 Personification through brand characters (Marlboro cigarette,
Lux and Bollywood heroines) or using user imagery
(Mountain dew dudes) or product animation techniques
(Bajaj Kawasaki, Fido –Dido of 7-up)
 Consumers often choose and use brands that have a
personality that is consistent with their self concept.
Brand Imagery - 4
 Finally brands may take on associations to their
past and certain noteworthy events in the brand
history, heritage, country of origin etc.
 Creating strong, favorable and unique associations
is a challenge to marketers, but its essential for
building brand equity.
 Strong brands have established brand associations
 Volvo & Michelin (safety), Intel (performance & compatibility)
Marlboro (macho/ western imagery), Coke (American &
refreshment), BMW (Styling & performance), Nike
(innovation & peak athletic performance), Hall Mark (caring),
Harley Davidson (adventure), Close-up (youth) etc.
 Brand Judgments
 Customers personal opinions and evaluations of the
brand, based on the performance and all the imagery
associations.
 Brand Quality: an important factor that affect
consumer’s brand attitude is perceived quality.
 Brand Credibility: extent to which brand as a whole is
credible is from the three dimensions
 1. Brand Expertise – is the brand competent, innovative and a
market leader
 2. B. Trust worthiness: dependable and keeping customer
interests in mind.
 3. B. Likeability: fun, interesting & worth spending time with.
 Brand Judgments -2
 Brand Consideration: Eliciting favorable attitude
and perceptions of credibility will be insufficient if
customers do not seriously consider the brand for
purchase and usage.
 It is beyond awareness & deals with whether
customers include the brand in their choice set.
 Brand Superiority: Superiority relates to the extent to
which customers view the brand as unique and better
than other brands.
 A critical factor in building intense & active relation-
ships and depends on the unique brand associations
that make up the brand image.
 Brand Feelings
 Are customers emotional responses and reactions
with respect to the brand. (feelings evoked by the
marketing programmes for the brand).
 How does the brand affect customers feelings about
themselves and their relationship with others.
 These feelings can be mild or intense; negative or positive.
 Six important types of Brand building feelings
 1. Warmth (soothing type of feelings): makes one feel a
sense of calm, creates sentimental or affectionate feelings
toward the brand..
 2. Fun (upbeat type of feelings): makes on feel lighthearted,
joyous, playful and cheerful
 Brand Feelings
 Six important types of Brand building feelings
 3. Excitement (a different form of upbeat feeling):
this makes consumers feel a sense of elation,
excitement – being alive, being cool or sexy.
 4. Security: Brand produces feelings of safety,
comfort and self assurance. It takes of the worry &
concern.
 5. Social Approval: Consumers feel that others look
favorably on their appearance, behavior and so on.
 6. Self Respect: the brand makes consumer feel
better about themselves. Consumers feel a sense of
pride, accomplishment or fulfillment.
 Brand Resonance
 Final step – focuses on the ultimate relationship
and level of identification that the customer has with
the brand.
 Brand resonance refers to the nature of this
relationship and the extent to which customers feel
they are in sync with the brand.
 Examples of brands with high resonance – Harley Davidson,
Apple and e-Bay.
 Can be broken down into four categories
 1. Behavioral loyalty
 2. Attitudinal attachment
 3. Sense of community
 4. Active engagement
 Brand Resonance
 Behavioral loyalty is depicted in terms of repeated
purchase.
 It reflects on the share of the brand in the product
category volumes.
 The life time value of behavior customers can be
enormous (due to more frequent purchase than
someone who postpones the purchase and then
buys).
 Behavioral loyalty is not just sufficient for
resonance to occur. Customers should go on and
build a positive attitude by which they start to see
the brand as something special.
 Brand Resonance

 Loyalty requires a deep attitudinal attachment.

(90% of people who said they are satisfied to
highly s. did not buy the same brand of car next
time – Frederick Reichheld).
 Brand can also take a broader meaning to the
consumer in terms of a sense of community.
 Identification with a brand community gives
customers kinship or affiliation with others who
are associated with the brand.
Brand Resonance
 Finallythe strongest affirmation of brand loyalty
is when customers are willing to invest, time,
energy, money or other resources in the brand
beyond those expended during purchase or
consumption of the brand.
 Customers may join a club centered on the
brand, get updates, get to correspond with
other brand users etc.
 Strong attitudinal attachment and social identity
are necessary for active engagement to occur.