Branding (01)

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What does branding mean?What does branding mean?

Transforming the product categoryTransforming the product category

Which are the first known instancesWhich are the first known instancesof branding?of branding?

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Brand QuizBrand Quiz

Identify the product behind these brands:Identify the product behind these brands:

1.1. D&GD&G

2.2. DKNY DKNY

3.3. Jimmy ChooJimmy Choo

4.4. YSLYSL

5.5. DiorDior

6.6. BalencigaBalenciga

7.7. GivenchyGivenchy8.8. Paloma PicassoPaloma Picasso

9.9. Coco ChanelCoco Chanel

10.10. Anais AnaisAnais Anais

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Brand QuizBrand Quiz

11.11. Moet Moet

12.12. Dom PerignonDom Perignon

13.13. BurberryBurberry

14.14. Zandra RhodesZandra Rhodes

15.15. BalmainBalmain

16.16. Mahlo BlahnikMahlo Blahnik

17.17. ChloeChloe

18.18. HermesHermes

19.19. Estee LauderEstee Lauder

20.20. CrossCross

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BrandingBranding

What does brand inject into a product & how isWhat does brand inject into a product & how islatter transformed?latter transformed?

1.1. What attributes materialize?What attributes materialize?

2.2. What advantages are created?What advantages are created?

3.3. What benefits emerge?What benefits emerge?4.4. What obsessions does it represent?What obsessions does it represent?

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Cont.Cont.

Brand is a longBrand is a long--term visionterm vision

1.1. Brand vision & purposeBrand vision & purpose

2.2. Brand valuesBrand values

3.3. Brand tone codes & personalityBrand tone codes & personality

4.4. Strategic image features (positioning)Strategic image features (positioning)5.5. Products within decided segmentsProducts within decided segments

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Cont.Cont.

Brand is a living memoryBrand is a living memory

Brand is a genetic programBrand is a genetic program

Brands endow products with meaningBrands endow products with meaning

Brand is a contract between product & market Brand is a contract between product & market

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Brand ContractBrand Contract

Closely monitor needs/expectations of potentialClosely monitor needs/expectations of potentialbuyersbuyers

React to technical & technological progressReact to technical & technological progress Provide both product volume & qualityProvide both product volume & quality

Control supply quantity & qualityControl supply quantity & quality

Deliver products to distributors etc. consistentlyDeliver products to distributors etc. consistently& according to requirement & according to requirement

Give meaning to brand & communicate it toGive meaning to brand & communicate it totarget market target market

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Service BrandsService Brands

Europcar, Hertz, VisaEuropcar, Hertz, Visa

Another exampleAnother example BankingBanking

Service brands are invisibleService brands are invisible so they depend onso they depend onimage of service providerimage of service provider

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Luxury Brands & GriffesLuxury Brands & Griffes

Griffe is a French term which means the fixedGriffe is a French term which means the fixedimage of a signature to be used as a trademarkimage of a signature to be used as a trademark

e.g. Yves St. Laurent or any designer line signede.g. Yves St. Laurent or any designer line signedby the designer. If it is produced without theby the designer. If it is produced without thetrademark signature, it becomes a luxury brand.trademark signature, it becomes a luxury brand.So Dunhill, Boss etc. are not griffes, they areSo Dunhill, Boss etc. are not griffes, they are

luxury brands. Nina Ricci has moved from griffeluxury brands. Nina Ricci has moved from griffeto luxury brand.to luxury brand.

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Brand PyramidBrand Pyramid

The griffeThe griffe

The luxury brandThe luxury brand

The upperThe upper--range brandrange brand

The brandThe brand

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Brand Awareness & DesireBrand Awareness & Desire

1.1. The buyers who still dream of a brand areThe buyers who still dream of a brand areaddicts. They should be rewarded.addicts. They should be rewarded.

2.2. The buyers who no longer dream areThe buyers who no longer dream aresaturated. Their desire must be revived.saturated. Their desire must be revived.

3.3. NonNon--buyers who dream but do not buy must buyers who dream but do not buy must be encouragedbe encouraged

4.4. Finally nonFinally non--buyers who do not dream & arebuyers who do not dream & areindifferent, fall outside the target segment.indifferent, fall outside the target segment.

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CoCo--brandingbranding

Also known as dual branding.Also known as dual branding.

New product launches clearly identify the brandsNew product launches clearly identify the brands

that cooperated to create & market them.that cooperated to create & market them.Compaq & Mattel brought out a line of hiCompaq & Mattel brought out a line of hi--tech/interactive toys.tech/interactive toys.

Many line extensions capitalize on the partnersMany line extensions capitalize on the partners

brand equity. Hagen Dazs launched a Baileysbrand equity. Hagen Dazs launched a Baileysflavored iceflavored ice--cream.cream.

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Cont.Cont.

To maximize their brand extension success rate,To maximize their brand extension success rate,many companies seek help from othermany companies seek help from other

companies brands whose established reputationcompanies brands whose established reputationhelps. Kellogg cohelps. Kellogg co--branded its cereals withbranded its cereals withHealthy Choice.Healthy Choice.

CoCo--branding may help usage extension. Inbranding may help usage extension. InEurope, Bacardi & Coke advertise togetherEurope, Bacardi & Coke advertise together

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Cont.Cont.

Ingredient coIngredient co--branding has becomebranding has becomecommonplace. Intel with Compaq is a commoncommonplace. Intel with Compaq is a commonexample.example.

Image reinforcement may also be a coImage reinforcement may also be a co--brandingbrandingobjective. Ariel & Whirlpool tied up to benefit objective. Ariel & Whirlpool tied up to benefit from each others equity & synergy.from each others equity & synergy.

Capitalizing on synergies among a no. of brandsCapitalizing on synergies among a no. of brandsis another cois another co--branding objective. Nestlebranding objective. Nestleshowcases all products to take on competition.showcases all products to take on competition.

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Cont.Cont.

CoCo--branding appears in sales promotions too.branding appears in sales promotions too.Companies find that Club Med vacations workCompanies find that Club Med vacations work

better than cash for consumer contests.better than cash for consumer contests. Loyalty programs increasingly use coLoyalty programs increasingly use co--brandingbranding

arrangements. Jet Airways tying up witharrangements. Jet Airways tying up withStanchart is a good example.Stanchart is a good example.

CoCo--branding may signal a trade marketingbranding may signal a trade marketingoperation. Danone created a special yogurt foroperation. Danone created a special yogurt forQuick (competitor to Big Mac).Quick (competitor to Big Mac).

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Brand identityBrand identity

The sum of the brandThe sum of the brand expressed as aexpressed as a product,product,

organization, person and symbol. So legendaryorganization, person and symbol. So legendary

brands would also be very good products (Machbrands would also be very good products (MachIII), have exemplary organizational values (3MIII), have exemplary organizational values (3Mepitomizes innovation), a distinct personalityepitomizes innovation), a distinct personality(Pepsi is young/vibrant) and a heritage (Coke(Pepsi is young/vibrant) and a heritage (Coke

symbolizes the American dream).symbolizes the American dream).

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Brand identityBrand identity

1.1. What is the brands particular vision & aim?What is the brands particular vision & aim?

2.2. What makes it different?What makes it different?

3.3. What need is the brand fulfilling?What need is the brand fulfilling?

4.4. What is its permanent nature?What is its permanent nature?

5.5. What are its values?What are its values?

6.6. What are the signs which make it What are the signs which make it recognizable?recognizable?

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Identity & ImageIdentity & Image

Image is on the receivers side, while identity isImage is on the receivers side, while identity ison the senders side. Image refers to the wayon the senders side. Image refers to the way

the target groups decode the signals emanatingthe target groups decode the signals emanatingfrom the brand. The purpose of identity is tofrom the brand. The purpose of identity is tospecify the brands meaning & aim. In Brandspecify the brands meaning & aim. In BrandManagement, identity precedes image; beforeManagement, identity precedes image; before

projecting an image to the public, you must projecting an image to the public, you must know exactly what you want to project.know exactly what you want to project.

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Positioning & its limitationsPositioning & its limitations

Evaluation & choice of positioning:Evaluation & choice of positioning:

1.1. Are products current looks & ingredientsAre products current looks & ingredients

compatible with the positioning?compatible with the positioning?2.2. How strong is assumed consumer motivationHow strong is assumed consumer motivationbehind the positioning?behind the positioning?

3.3. What size of market is involved?What size of market is involved?

4.4. Is this positioning credible?Is this positioning credible?5.5. Does it capitalize on a competitors actual orDoes it capitalize on a competitors actual or

latent weakness?latent weakness?

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Cont.Cont.

6. What financial means are required by such6. What financial means are required by suchpositioning?positioning?

7. Is this positioning specific & distinctive?7. Is this positioning specific & distinctive?8. Is it sustainable vs. competition?8. Is it sustainable vs. competition?

9. Does it provide some alternative solution, in9. Does it provide some alternative solution, incase of failure?case of failure?

10. Does it justify a price premium?10. Does it justify a price premium?

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Limitations of positioningLimitations of positioning

1.1. Focuses more on product & less on brand.Focuses more on product & less on brand.

2.2. Does not reveal all the brands richness of Does not reveal all the brands richness of

meaning or reflect all its potential.meaning or reflect all its potential.3.3. Allows communication to be entirely dictatedAllows communication to be entirely dictated

by creative whims & current fads.by creative whims & current fads.

4.4. Brand identity serves to offset the limitationsBrand identity serves to offset the limitationsof positioning.of positioning.

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Brand Identity PrismBrand Identity Prism

1.1. Physical qualities or physique, which is bothPhysical qualities or physique, which is boththe brands backbone & its tangible addedthe brands backbone & its tangible addedvalue. First step in developing a brand is tovalue. First step in developing a brand is todefine its physical aspect. E.g. Coke bottle is adefine its physical aspect. E.g. Coke bottle is adistinctive part of the Coke brand. So is thedistinctive part of the Coke brand. So is thedark liquid (no crystal Coke, though there is adark liquid (no crystal Coke, though there is acrystal Pepsi). External.crystal Pepsi). External.

2.2. Personality, or character. The way it speaks of Personality, or character. The way it speaks of the product shows what kind of person it the product shows what kind of person it would be if it were human. Internal.would be if it were human. Internal.

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Cont.Cont.

3. Culture, from which every product derives. It 3. Culture, from which every product derives. It means the set of values feeding the brandsmeans the set of values feeding the brands

inspiration. Product is concrete representation of inspiration. Product is concrete representation of this culture & means of communication. Majorthis culture & means of communication. Majorbrands are driven by a culture & in turn conveybrands are driven by a culture & in turn conveythis culture. In focusing too heavily onthis culture. In focusing too heavily on

personality, advertising has ignored this vitalpersonality, advertising has ignored this vitalfacet. E.g. Mercedes embodies German values,facet. E.g. Mercedes embodies German values,Coke stands for US & Sony for Japan.Coke stands for US & Sony for Japan.

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Cont.Cont.

Culture links brand to firm esp. when the 2 bearCulture links brand to firm esp. when the 2 bear

the same name. Nestle is not a fun & enjoyablethe same name. Nestle is not a fun & enjoyable

food brand; it is considered austere & puritan,food brand; it is considered austere & puritan,

because the degree of freedom of the brand isbecause the degree of freedom of the brand isoften reduced by the corporate culture of which it often reduced by the corporate culture of which it

is the most visible outward sign. Brand culture isis the most visible outward sign. Brand culture is

vital in launching new alcohol brands, since onevital in launching new alcohol brands, since onehas to implicitly reassure consumers (excitement has to implicitly reassure consumers (excitement--cumcum--fear factor). Banks too need this. Internal.fear factor). Banks too need this. Internal.

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Cont.Cont.

4. Relationship, since brands are at the crux of 4. Relationship, since brands are at the crux of transactions/exchanges between people (esp.transactions/exchanges between people (esp.

the service sector). Nike bears a Greek namethe service sector). Nike bears a Greek namethat relates it to specific cultural values like thethat relates it to specific cultural values like theOlympic Games. IBM symbolizes orderliness &Olympic Games. IBM symbolizes orderliness &Apple friendliness. The relationship aspect isApple friendliness. The relationship aspect is

crucial for banks etc. External.crucial for banks etc. External.

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Cont.Cont.

5. Reflection, because its communication & most 5. Reflection, because its communication & most striking products build up over time. So brandstriking products build up over time. So brand

will always tend to build a reflection or an imagewill always tend to build a reflection or an imageof the buyer or user which it seems to beof the buyer or user which it seems to beaddressing. External.addressing. External.

6. Finally, brand speaks to our self 6. Finally, brand speaks to our self--image. Throughimage. Through

our attitude towards certain brands, we developour attitude towards certain brands, we developa certain inner relationship with ourselves.a certain inner relationship with ourselves.PorschePorsche try racing against yourself. Internal.try racing against yourself. Internal.

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Power of brand namesPower of brand names

In deciding to call it Apple, the founders wantedIn deciding to call it Apple, the founders wantedto emphasize the unconventional nature of theto emphasize the unconventional nature of the

brand; in refusing to idolize computer science,brand; in refusing to idolize computer science,Apple was completely overturning the humanApple was completely overturning the human--machine relationship. Machine was intended tomachine relationship. Machine was intended tobecome something to enjoy, rather than reverebecome something to enjoy, rather than revere

or fear. The brand name had in itself all theor fear. The brand name had in itself all theingredients to establish a new norm (whichingredients to establish a new norm (whichseems obviousseems obvious nownow).).

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Cont.Cont.

Nomen est omenNomen est omen

A name is an omen. Examining a brand nameA name is an omen. Examining a brand namethus amounts to decoding this omen, i.e. thethus amounts to decoding this omen, i.e. thebrands program, its area of legitimacy & knowbrands program, its area of legitimacy & know--how; as well as its scope of competence. Stronghow; as well as its scope of competence. Strong

brand names give words their own meaning e.g.brand names give words their own meaning e.g.Mercedes is a Spanish Christian name, but nowMercedes is a Spanish Christian name, but nowsymbolizes German efficiency.symbolizes German efficiency.

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Brand characters/emblemsBrand characters/emblems

Emblem is a brands capital equity. EmblemEmblem is a brands capital equity. Emblemserves to symbolize brand identity through aserves to symbolize brand identity through a

visual figure other than brand name to:visual figure other than brand name to:

1.1. Help identify & recognize brandHelp identify & recognize brand

2.2. Guarantee the brandGuarantee the brand

3.3. Give brand durabilityGive brand durability

4.4. Help differentiate & personalizeHelp differentiate & personalize

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Examples:Examples:

Mercedes insigniaMercedes insignia

Renaults diamondRenaults diamond

Nikes dashNikes dash Adidass 3 stripesAdidass 3 stripes

Nestles nest Nestles nest

Red grouse for Famous grouse whiskyRed grouse for Famous grouse whisky Lotus for IndiaLotus for India

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Brand CreatorBrand Creator

YSL designer wearYSL designer wear

Paloma Picassos perfumesPaloma Picassos perfumes

Coco Chanel designer wearCoco Chanel designer wear Shahnaz Husseins cosmeticsShahnaz Husseins cosmetics

Lacoste sportswearLacoste sportswear

Pierre Cardins accessoriesPierre Cardins accessories

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Brand potentialBrand potential

Not all the facets of brand identity areNot all the facets of brand identity areequally patent. Some are TOM, whileequally patent. Some are TOM, while

others are latent, concealed in certainothers are latent, concealed in certainunderlying signs of the brand.underlying signs of the brand.

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Launching new brandsLaunching new brands

If new brand does not convey its values fromIf new brand does not convey its values fromthe very start, it is unlikely to become a majorthe very start, it is unlikely to become a major

brand.brand. Choosing symbolic reference is as important asChoosing symbolic reference is as important as

deciding product reference.deciding product reference.

Successful launch requires that new brand beSuccessful launch requires that new brand be

treated as real brand from very start treated as real brand from very start not asnot asmere product name presented in advertising.mere product name presented in advertising.

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Cont.Cont.

The identity of strong brands is so strong that The identity of strong brands is so strong that companies often change their corporate name tocompanies often change their corporate name to

take on the name of their star brand (Sony wastake on the name of their star brand (Sony wasearlier known as Tokyo Tsuhin Kogyo).earlier known as Tokyo Tsuhin Kogyo).

Fena Ltd. was earlier called Syndet & ChemicalsFena Ltd. was earlier called Syndet & Chemicals

Ltd.Ltd.

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Determining products typical of brandDetermining products typical of brand

Not all products of a brand equally represent it.Not all products of a brand equally represent it.Only those which truly epitomize the brandsOnly those which truly epitomize the brands

identity should be used as support in a launchidentity should be used as support in a launchcampaign. Product features should also support campaign. Product features should also support the brands ideology. Compaq is expected tothe brands ideology. Compaq is expected tohave the latest gizmos, Mercedes cannot lookhave the latest gizmos, Mercedes cannot look

like Ambassador!like Ambassador!

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Cont.Cont.

For service brands, this task is tougher. SoFor service brands, this task is tougher. Sochoose the services which best exemplify thechoose the services which best exemplify the

brand. The tone communicated & the benefitsbrand. The tone communicated & the benefitsconveyed should not be chosen in isolation, but conveyed should not be chosen in isolation, but because they are the strategic traits of thebecause they are the strategic traits of thebrand you are building.brand you are building.

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Brand Campaign or Product Campaign?Brand Campaign or Product Campaign?

Whenever a brand is created, there are 2Whenever a brand is created, there are 2alternative strategiesalternative strategies to communicate theto communicate the

brands meaning either directly or by focusing onbrands meaning either directly or by focusing ona particular product. VW focused on Beetle,a particular product. VW focused on Beetle,because it was an original piece of workbecause it was an original piece of work totallytotallydifferent from the normal car culture. Tatadifferent from the normal car culture. Tata

however focuses on the Tata corporate brandhowever focuses on the Tata corporate brandname, because of the tremendous clout it name, because of the tremendous clout it commands.commands.

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Cont.Cont.

5 universal brand identity conditions:5 universal brand identity conditions:

1.1. Is it specificIs it specific

2.2. Is it wellIs it well--foundedfounded3.3. Is it motivatingIs it motivating

4.4. Does it capitalize on competitor weaknessDoes it capitalize on competitor weakness

5.5. Is it supported internally by allIs it supported internally by all

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Brand LanguageBrand Language

Allows brands to freely express their ideology.Allows brands to freely express their ideology.Serves as a means of decentralizing decisions.Serves as a means of decentralizing decisions.So it should specify:So it should specify:

1.1. Dominant features of styleDominant features of style

2.2. AudioAudio--visual characteristicsvisual characteristics e.g. a populare.g. a popularjingle or piece of music (Maggi/Airtel)jingle or piece of music (Maggi/Airtel)

3.3. Graphic layout & brands color codesGraphic layout & brands color codes4.4. Principles determining how brand & itsPrinciples determining how brand & itssignature (if any) can be usedsignature (if any) can be used

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Choosing strong brand nameChoosing strong brand name

To make a strong brand, any name can be usedTo make a strong brand, any name can be used(or almost any), provided there is consistent (or almost any), provided there is consistent

effort over time to give it meaning.effort over time to give it meaning. Brand name must be chosen with a view to theBrand name must be chosen with a view to the

brands future & destiny & not in relation to thebrands future & destiny & not in relation to thespecific market & product situation at the timespecific market & product situation at the time

of its birth. Think internationally too.of its birth. Think internationally too. Brand name should not describe what theBrand name should not describe what the

product does but reveal/suggest a difference.product does but reveal/suggest a difference.

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Brand awarenessBrand awareness

TOM: whether brand is first to come to mind inTOM: whether brand is first to come to mind inthe product categorythe product category

Unaided awareness: brand impact or the extent Unaided awareness: brand impact or the extent to which it is spontaneously associated withto which it is spontaneously associated withgiven product categorygiven product category

Aided awareness: specifically asking peopleAided awareness: specifically asking people

whether they have heard the brand namewhether they have heard the brand name

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Sustaining a brand long termSustaining a brand long term

Brand is a name product progress takes toBrand is a name product progress takes toaccess the market e.g. inclusion of enzymes inaccess the market e.g. inclusion of enzymes in

detergents is called Ariel & the progress indetergents is called Ariel & the progress inconvenience coffee is called Nescafe. Beforeconvenience coffee is called Nescafe. Beforelong, DOBs start copying these innovations, solong, DOBs start copying these innovations, sono brand can afford to get complacent e.g.no brand can afford to get complacent e.g.

Nescafe is generic with the coffee categoryNescafe is generic with the coffee categorybecause it never stopped innovating from 1945!because it never stopped innovating from 1945!

Same for Gillette.Same for Gillette.

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DOBDOB

Concept of DOB:Concept of DOB: Distributor Own BrandsDistributor Own Brands

1. Guilbert in France sells office stationery bought 1. Guilbert in France sells office stationery bought from 3M under its own store name!from 3M under its own store name!

2. DOBs are everywhere2. DOBs are everywhere automobiles, electricalautomobiles, electricalequipment, FMCG etc.equipment, FMCG etc.

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How to fight DOBHow to fight DOB

One way to renew product regularly is toOne way to renew product regularly is toupgrade it to current level of expectation e.g.upgrade it to current level of expectation e.g.detergent manufacturers making minor changesdetergent manufacturers making minor changesevery 2every 2--3 years.3 years.

Second is to integrate new/emerging needsSecond is to integrate new/emerging needswhile holding onto same positioning e.g. Volvowhile holding onto same positioning e.g. Volvo

Third is to constantly confirm ones superiorityThird is to constantly confirm ones superiorityon one particular axis e.g. shampoos extendingon one particular axis e.g. shampoos extendinginto creams, lotions etc. on the hair lossinto creams, lotions etc. on the hair lossplatformplatform

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Cont.Cont.

Fourth way lies in constantly strengthening theFourth way lies in constantly strengthening thebrands reputation in terms of WOM reports frombrands reputation in terms of WOM reports from

experts & opinion leaders.experts & opinion leaders. Finally, in multiFinally, in multi--brand companies, one must brand companies, one must prioritize i.e. accord the stronger brands more inprioritize i.e. accord the stronger brands more interms of innovativeness etc.terms of innovativeness etc.

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Invest in communicationInvest in communication

Communication is a powerful weapon to fight Communication is a powerful weapon to fight the confusion that DOBs seek to create in thethe confusion that DOBs seek to create in the

minds of the brands target audience. Sustainedminds of the brands target audience. Sustainedadvertising creates a barrier to entry. But youadvertising creates a barrier to entry. But youalso need constant product innovation, sincealso need constant product innovation, sinceadvertising alone cannot help.advertising alone cannot help.

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Remain within mainstream priceRemain within mainstream price

EDLP:EDLP:

Every Day Low PriceEvery Day Low Price

Instead of myriad promos, you stick to aInstead of myriad promos, you stick to aconsistent & constant low price all year round.consistent & constant low price all year round.Used by P&G to lure back customers lost due toUsed by P&G to lure back customers lost due toperceived high premiums. Brand has to stayperceived high premiums. Brand has to stay

within the core of the market, if it wants towithin the core of the market, if it wants tocontinue. Loyalty is not price insensitive.continue. Loyalty is not price insensitive.

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Dominate to investDominate to invest

Behind every strong brand, there is a strongBehind every strong brand, there is a strongcompany.company.

Become an unchallenged leader of nicheBecome an unchallenged leader of nichemarkets, which competitors will then hesitate tomarkets, which competitors will then hesitate toenter.enter.

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Control the distribution systemControl the distribution system

The Levis criteria for retailers:The Levis criteria for retailers:

1.1. Must stock well known brandsMust stock well known brands

2.2. High quality ambienceHigh quality ambience3.3. Product range affecting Levis image must not Product range affecting Levis image must not

be found nearbybe found nearby

4.4. Service must be in tune with brandService must be in tune with brand

5.5. Shop must be fixed construction with adequateShop must be fixed construction with adequatespace for jeans for target audiencespace for jeans for target audience

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Create entry barriersCreate entry barriers

DOBs sprout when:DOBs sprout when:

1.1. There is high volume in market There is high volume in market

2.2. Offer hardly changesOffer hardly changes3.3. Brands are expensiveBrands are expensive

4.4. Customers perceive little riskCustomers perceive little risk

5.5. Technology is accessible at low cost Technology is accessible at low cost

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Main sources of entry barriersMain sources of entry barriers

Cost of productionCost of production

Mastering technology & qualityMastering technology & quality

Domination through image & communicationDomination through image & communication Line extensionLine extension

Branding immediatelyBranding immediately

Controlling relationships with opinion leadersControlling relationships with opinion leaders Controlling distributionControlling distribution

Legal recourseLegal recourse

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Adapting to marketAdapting to market

3 layers of brand:3 layers of brand:

11. Kernel. Kernel

Top of the pyramid & source of its identity.Top of the pyramid & source of its identity.Invisible, but imparts coherence & consistencyInvisible, but imparts coherence & consistency

2.2. CodesCodes

How the brand talks & which image it usesHow the brand talks & which image it uses

(middle level)(middle level)3.3. PromisesPromises

Positioning platform (bottom)Positioning platform (bottom)

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LOreal ErrorLOreal Error

Their perfume Fidji was amongst the top 5 whenTheir perfume Fidji was amongst the top 5 whenit was launched. After years of communicatingit was launched. After years of communicatinga woman is an island, her perfume is Fidji,a woman is an island, her perfume is Fidji,

LOreal tried to modernize the message byLOreal tried to modernize the message byrunning a campaign featuring a woman with arunning a campaign featuring a woman with asnake, with the slogan the perfume of snake, with the slogan the perfume of rediscovered paradise. Sales droppedrediscovered paradise. Sales dropped

drastically, because this interfered with thedrastically, because this interfered with thebrand essence which was the basic nature of brand essence which was the basic nature of women (Mallika Sherawat?).women (Mallika Sherawat?).

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Range ExtensionRange Extension

Multiplication of sizesMultiplication of sizes

Multiplication of flavorsMultiplication of flavors

Multiplication of ingredients (Diet Pepsi)Multiplication of ingredients (Diet Pepsi) Multiplication of generic forms (medicines)Multiplication of generic forms (medicines)

Multiplication of physical forms (liquid/powder)Multiplication of physical forms (liquid/powder)

Multiplication of product addMultiplication of product add--ons (shavingons (shaving

cream, foam, gel)cream, foam, gel) Multiplication of versions having specificMultiplication of versions having specific

application (shampoos)application (shampoos)

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Brand ArchitectureBrand Architecture

Product brandProduct brand

Line brandLine brand

Range brandRange brand Umbrella brandUmbrella brand

Source brandSource brand

Endorsing brandEndorsing brand

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Product brand strategyProduct brand strategy

Involves the assignment of a particular name toInvolves the assignment of a particular name to1 & only1 product as well as one exclusive1 & only1 product as well as one exclusive

positioning. As a result each new product positioning. As a result each new product receives its own brand name that belongs onlyreceives its own brand name that belongs onlyto it. E.g. P&Gto it. E.g. P&G Ariel, Vizir, Dash (allAriel, Vizir, Dash (alldetergents), Camay, Zest (soaps). Each product detergents), Camay, Zest (soaps). Each product

has a precise, wellhas a precise, well--defined positioning &defined positioning &occupies a particular segment of the market.occupies a particular segment of the market.

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Line brand strategyLine brand strategy

The line responds to the concern of offering oneThe line responds to the concern of offering onecoherent product under a single name bycoherent product under a single name by

proposing many complementary products. That proposing many complementary products. That these products are completely different for thethese products are completely different for theproducer makes no difference for the consumerproducer makes no difference for the consumerwho perceives them as related. E.g. a shampoowho perceives them as related. E.g. a shampoo

maker offering an oil & then a gel, all under themaker offering an oil & then a gel, all under thesame brand name (Clinic).same brand name (Clinic).

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Cont.Cont.

Advantages:Advantages:

1.1. Reinforces selling power of brand & creates aReinforces selling power of brand & creates a

strong brand imagestrong brand image2.2. Leads to ease of distribution for line extensionsLeads to ease of distribution for line extensions

3.3. Reduces launch costsReduces launch costs

*Warning!*Warning!

Extensions should be closely linked to existingExtensions should be closely linked to existingproduct concept.product concept.

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Range brand strategyRange brand strategy

Range brands bestow a single brand name &Range brands bestow a single brand name &promote through a single promise a range of promote through a single promise a range of

products belonging to the same area of products belonging to the same area of competence. Nestle is the best example of thiscompetence. Nestle is the best example of thiscategory. Such names throw light on thecategory. Such names throw light on theproducts & help structure the range in such aproducts & help structure the range in such a

way that it creates a criteria for segmentationway that it creates a criteria for segmentationeven on shop shelves.even on shop shelves.

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Source brand strategySource brand strategy

Identical to umbrella brand, except that theIdentical to umbrella brand, except that theproducts are directly named. Best example isproducts are directly named. Best example is

Dabur, which is the trusted source for a host of Dabur, which is the trusted source for a host of products, but names them distinctly e.g. Vatika,products, but names them distinctly e.g. Vatika,Hajmola, Real etc. The corporate brand isHajmola, Real etc. The corporate brand isendorsing the quality of merchandise & acts asendorsing the quality of merchandise & acts as

the guarantor.the guarantor.

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Endorsing brand strategyEndorsing brand strategy

One of the least expensive ways of givingOne of the least expensive ways of givingsubstance to a company name & allowing it tosubstance to a company name & allowing it to

achieve a minimal brand status. High quality of achieve a minimal brand status. High quality of these brands is guaranteed by the names of these brands is guaranteed by the names of major organizations. E.g. GM for cars, J&J formajor organizations. E.g. GM for cars, J&J forbaby products etc.baby products etc.

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Indian ScenarioIndian Scenario

Corporate Brand (Tata)Corporate Brand (Tata)

Umbrella Brand (Nestle)Umbrella Brand (Nestle)

Mother Brand (Colgate)Mother Brand (Colgate) Brand (Big Mac)Brand (Big Mac)

Remember, the process is cumulative!Remember, the process is cumulative!

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Choosing the appropriate brandingChoosing the appropriate brandingstrategystrategy

Choice of brand policy is not a stylistic exerciseChoice of brand policy is not a stylistic exercisebut more a strategic decision aimed at but more a strategic decision aimed at

promoting individual products & ranges as wellpromoting individual products & ranges as wellas capitalizing the brand in the long term.as capitalizing the brand in the long term.Criteria include:Criteria include:

1.1. Product/service in questionProduct/service in question

2.2. Consumer behaviorConsumer behavior3.3. Firms competitive positionFirms competitive position

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Cont.Cont.

Decision stems from recognition of the brandsDecision stems from recognition of the brandsrole as expected by the customer, comparedrole as expected by the customer, compared

with function & meaning of possible product,with function & meaning of possible product,range & line specific names & that of otherrange & line specific names & that of otherquality indicators such as packaging, catalogue,quality indicators such as packaging, catalogue,advertising & the retailers own recommendationadvertising & the retailers own recommendation

& advice.& advice.

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3M Strategy3M Strategy

Each innovation has to answer the following 4Each innovation has to answer the following 4questions:questions:

1.1. Is the product a radical innovation?Is the product a radical innovation?2.2. Is there a usable primary brand?Is there a usable primary brand?

3.3. Does the product justify a new primary brand?Does the product justify a new primary brand?

4.4. Does it justify a new secondary brand?Does it justify a new secondary brand?

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Product namesProduct names

1.1. Lacoste strategyLacoste strategy::

Brand transform everything it embraces,Brand transform everything it embraces,turning an article of everyday use into aturning an article of everyday use into aproduct of distinction.product of distinction.

2.2. Mercedes strategyMercedes strategy::

A, B, E class denote different models with theA, B, E class denote different models with theimage of Mercedes reflected in every model.image of Mercedes reflected in every model.

3.3. Nestle strategyNestle strategy::

Source brand naming.Source brand naming.

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Cont.Cont.

4.4. Lancome strategyLancome strategy: Uses a suffix ome after: Uses a suffix ome afterevery brand name to establish the link betweenevery brand name to establish the link betweenbrand & product.brand & product.

5.5. Clarins strategyClarins strategy: Uses multi as a prefix to all: Uses multi as a prefix to allits products because it is part of the coreits products because it is part of the coreidentity of the Clarins brand & not just anidentity of the Clarins brand & not just an

afterthought.afterthought.6.6. Dior strategyDior strategy: Allows extension w/o destabilizing: Allows extension w/o destabilizing

heart of brand.heart of brand.

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Cont.Cont.

7.7. P&G strategyP&G strategy::

Brands are fully autonomous & exist w/o anyBrands are fully autonomous & exist w/o any

reference to source or company. Examplesreference to source or company. Exampleswould be Ariel, Dash, Tide etc.would be Ariel, Dash, Tide etc.

* HLL uses the same strategy. Nestle & Cadbury* HLL uses the same strategy. Nestle & Cadbury

use exactly the reverse strategy.use exactly the reverse strategy.

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Some failures in brandSome failures in brand--productproductrelationshiprelationship

1.1. Brand simply disappears behind 1 of theBrand simply disappears behind 1 of theproducts & ceases to have an identity of itsproducts & ceases to have an identity of itsown e.g. Nina Ricci & L Air du Temps (itsown e.g. Nina Ricci & L Air du Temps (its

bestselling perfume).bestselling perfume).2.2. Brand product disconnection e.g. Corning doesBrand product disconnection e.g. Corning does

not gain from Pyrex (which is not perceived asnot gain from Pyrex (which is not perceived asa Corning brand).a Corning brand).

3.3. Breakdown due to individual financialBreakdown due to individual financialaccountability of brands, leading to theiraccountability of brands, leading to theirdemise due to minimal resource allocation.demise due to minimal resource allocation.

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Brand extensionBrand extension

2 types:2 types:

1.1. Related categories (Cinthol)Related categories (Cinthol)

2.2. Unrelated categories (Tata)Unrelated categories (Tata)

1 again can be of 2 types1 again can be of 2 types extension into sameextension into sameproduct category (Cinthol fresh/cologne) orproduct category (Cinthol fresh/cologne) orsimilar product category (Cinthol talcumsimilar product category (Cinthol talcumpowder)powder)

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Category related vs. Image relatedCategory related vs. Image related

Category related (line extension?):Category related (line extension?):

1.1. Ponds DFT to Ponds MagicPonds DFT to Ponds Magic2.2. CDC to Colgate gelCDC to Colgate gel

Image related:Image related:1.1. Cinthol soap to talcum powderCinthol soap to talcum powder

2.2. CDC to Colgate toothbrushCDC to Colgate toothbrush

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Unrelated (and inadvisable):Unrelated (and inadvisable):

1.1. Ceat Ceat tyres to financial servicestyres to financial services

2.2. HMTHMT watches to tractorswatches to tractors3.3. JK JK tyres to cement tyres to cement

4.4. WIPROWIPRO computers to lightingcomputers to lighting

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1.1. Innovation allows companies to monitor &Innovation allows companies to monitor &surpass customer expectations.surpass customer expectations.

2.2. Extension allows economies of scale inExtension allows economies of scale inadvertising.advertising.

3.3. It is also the only way of defending the brandIt is also the only way of defending the brandat risk in the home market (esp. from DOBs)at risk in the home market (esp. from DOBs)

4.4. It gives access to accumulated image capital,It gives access to accumulated image capital,esp. during M&A.esp. during M&A.

5.5. It fuels image capital of brand.It fuels image capital of brand.

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Some paradoxes of extensionSome paradoxes of extension

Consumer distinguishes rather well the brandConsumer distinguishes rather well the brandfrom the product e.g. Mars realized this whenfrom the product e.g. Mars realized this whentheir ice cream bar clicked, though they felt theytheir ice cream bar clicked, though they felt theystood only for chocolates.stood only for chocolates.

Nielsen study proved the fallacy of mistakenlyNielsen study proved the fallacy of mistakenlyassuming that it is more cost effective to extend,assuming that it is more cost effective to extend,

since new products launched under new namessince new products launched under new namesend up with twice the market share of end up with twice the market share of extensions ( except for health & beauty).extensions ( except for health & beauty).

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ConclusionConclusion

Many managers confident in the productivity of Many managers confident in the productivity of brand extension, under assess the mediabrand extension, under assess the mediaadvertising budget. The golden rule is not to doadvertising budget. The golden rule is not to doso, since ceterus paribus, the extension willso, since ceterus paribus, the extension willalways enjoy a slight advantage over totally newalways enjoy a slight advantage over totally newlaunches.launches.

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Influence of extensions on brandInfluence of extensions on brandcapitalcapital

1.1. Some extensions take advantage of brandSome extensions take advantage of brandcapital. Product sells thanks to what it receivescapital. Product sells thanks to what it receivesfrom brand.from brand.

2.2. Other extensions destroy the brand capitalOther extensions destroy the brand capitalesp. if the extension is downwards.esp. if the extension is downwards.

3.3. Some extensions have a neutral effect on theSome extensions have a neutral effect on the

brand capital. The product is not out of placebrand capital. The product is not out of placebut in tune with what is expected from thebut in tune with what is expected from thebrand.brand.

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Cont.Cont.

4. Some extensions influence the meaning of the4. Some extensions influence the meaning of thebrand. When Tefal (home appliances) endorsedbrand. When Tefal (home appliances) endorsedtelephones it modernized itself through thesetelephones it modernized itself through these

extensions & acquired the tag of a brand that extensions & acquired the tag of a brand that brings together technology & aesthetics in thebrings together technology & aesthetics in theservice of the home.service of the home.

5. Some extensions are regenerating. They revive5. Some extensions are regenerating. They revive

the brand & its core & rethe brand & its core & re--express its base valuesexpress its base valuesin a new, stronger manner (Lacoste greenin a new, stronger manner (Lacoste greenblazer, Marlboro classic).blazer, Marlboro classic).

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Cont.Cont.

Some extensions, though not desired by theSome extensions, though not desired by thebrand are necessary to defend the brand capital.brand are necessary to defend the brand capital.Their purpose is to prevent the brand nameTheir purpose is to prevent the brand namefrom being used by others in another category.from being used by others in another category.So Cartier has diversified from watches to otherSo Cartier has diversified from watches to otherrelated products to defend its brand capital.related products to defend its brand capital.

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Extension errorsExtension errors

Restricted vision of brandRestricted vision of brand::

Brand extension program is limited to fewBrand extension program is limited to few

variations of main product, with no significant variations of main product, with no significant innovation.innovation.

Locking up the brandLocking up the brand::

Nestle thought Maggi was old & stopped usingNestle thought Maggi was old & stopped using

it for extensions, thus making it really old &it for extensions, thus making it really old &outdated in the mind of the consumer (identityoutdated in the mind of the consumer (identityjeopardized image).jeopardized image).

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Cont.Cont.

Harmful extensionsHarmful extensions::

In general, extension into lower qualityIn general, extension into lower qualitysegments is destructive. So Lycra, does not havesegments is destructive. So Lycra, does not havea sub brand, since it may imply different qualitya sub brand, since it may imply different qualitylevels.levels.

Opportunism & identity incoherenceOpportunism & identity incoherence::

China & cutlery in a Nina Ricci boutique does not China & cutlery in a Nina Ricci boutique does not make sense, since these items do not fit into themake sense, since these items do not fit into theparent brand image.parent brand image.

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Cont.Cont.

Prototypical brandsPrototypical brands::

In some markets, one brand may represent theIn some markets, one brand may represent the

entire product category e.g. Coke for colas &entire product category e.g. Coke for colas &Levis for jeans. So it becomes a prototypeLevis for jeans. So it becomes a prototypebrand. Such a brand should not venture intobrand. Such a brand should not venture intoterritories where other prototypes exist. Lacosteterritories where other prototypes exist. Lacoste

lost out when it tried to venture into jeanslost out when it tried to venture into jeansterritory (dominated by Levis).territory (dominated by Levis).

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Cont.Cont.

Trap of mundane productsTrap of mundane products::

Attaching the brand to a mundane product Attaching the brand to a mundane product

renders the brand artificial & only an act of renders the brand artificial & only an act of communication. Thomson did not benefit fromcommunication. Thomson did not benefit fromthe image of Thomson Industry when it tried tothe image of Thomson Industry when it tried tosell home appliances. That is why Videocon sellssell home appliances. That is why Videocon sells

appliances under a different set appliances under a different set--up.up.

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Cont.Cont.

Case of luxury goodsCase of luxury goods::

When a brand proliferates into uninspiringWhen a brand proliferates into uninspiringproducts such as cigarettes, handkerchiefs, tiesproducts such as cigarettes, handkerchiefs, tiesetc., its capital asset is drained. Cardin is theetc., its capital asset is drained. Cardin is thebest example of this foolishness.best example of this foolishness.

Complementarity is not guaranteeComplementarity is not guarantee::

Products do not determine extensionProducts do not determine extensionpossibilities, adherence to brands core identitypossibilities, adherence to brands core identitydoes so. Lacoste cannot enter jeans market.does so. Lacoste cannot enter jeans market.

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Marketing Mix of brand extensionsMarketing Mix of brand extensions

Foreseeing risks for brandForeseeing risks for brand::

Fisher price did not enter the childFisher price did not enter the child--carecareproduct segment, despite the obviousproduct segment, despite the obvious

opportunity.opportunity. Anticipating risks for extensionAnticipating risks for extension::

3 psychological assumptions:3 psychological assumptions:

1.1. +ves of brand will be transferred to new item+ves of brand will be transferred to new item

2.2. --ves will not be transferredves will not be transferred

3.3. +ve of brand will not become+ve of brand will not become ve of new itemve of new item

1 & 2 verified by research, comm. ensures 3.1 & 2 verified by research, comm. ensures 3.

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Cont.Cont.

NamesNames??

When extension is close to core, it should not When extension is close to core, it should not

receive specific brand name, when it is remote,receive specific brand name, when it is remote,it should.it should.

CoCo--brandingbranding::

Helps make extensions more credible. Compaq &Helps make extensions more credible. Compaq &

Mattel makes Compaqs extension credible.Mattel makes Compaqs extension credible.

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Cont.Cont.

Reinstating brand valuesReinstating brand values::Sales of standard product will decline if we get Sales of standard product will decline if we get carries away by extensions, so it is vital tocarries away by extensions, so it is vital toremind customers of your founding values.remind customers of your founding values.

Coherence of marketing mixCoherence of marketing mix::Extension should not be limited to merelyExtension should not be limited to merelybestowing names. It should be accompanied bybestowing names. It should be accompanied bya mktg. mix different from previous products.a mktg. mix different from previous products.

Pernod failed with peanuts due to perishability.Pernod failed with peanuts due to perishability.Should have changed the place P.Should have changed the place P.

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Cont.Cont.

When brand hides new product When brand hides new product::

In national launches of extensions, target In national launches of extensions, target

clientele might not even know that they areclientele might not even know that they aredealing with new products. Ad is well seen, but dealing with new products. Ad is well seen, but not the product. Celebrity endorsement not the product. Celebrity endorsement compounds the confusion & announcementscompounds the confusion & announcements

may be treated as simple reinforcements. Dabur,may be treated as simple reinforcements. Dabur,Hajmola & AB.Hajmola & AB.

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Brand PersonalityBrand Personality

1.1. Ritualistic brandsRitualistic brands Britannia MarieBritannia Marie tea timetea time

2.2. Symbol brandsSymbol brands Onida devilOnida devil

3.3. Heritage brandsHeritage brands pioneer brandspioneer brands PhilipsPhilipsaudioaudio

4.4. Exclusive brandsExclusive brands snobbishsnobbish BMW bikesBMW bikes

5.5. Belonging brandsBelonging brands Levi, RayLevi, Ray--BanBan

6.6. Legendary brandsLegendary brands -- MarlboroMarlboro

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Brand personality is the sum of all the significant Brand personality is the sum of all the significant tangible and intangible assets of a brand.tangible and intangible assets of a brand.

Little HeartsLittle Hearts essence is romance, benefit is funessence is romance, benefit is funand attributes would be heart and attributes would be heart--shaped biscuits!shaped biscuits!

Washing machineWashing machine sensory element is looks,sensory element is looks,emotional element is reliability, rational element emotional element is reliability, rational element

is no. of kgs of clothes it washes!is no. of kgs of clothes it washes!

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MaggiMaggi humorhumor

KSKS sensualitysensuality

Red & WhiteRed & White valourvalour Onida TVOnida TV -- irritationirritation

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Brand ImageBrand Image

ProviderProvider--driven imagedriven image Tata (steel to salt)Tata (steel to salt)

Product Product--driven imagedriven image the best a man can get!the best a man can get!

UserUser--driven imagedriven image lifestyle of userlifestyle of user Nivea, forNivea, forthe man who dares to show he caresthe man who dares to show he cares

Is image the same as personality? Well, image isIs image the same as personality? Well, image is

actually = product attributes +consumeractually = product attributes +consumerbenefits + brand personality! So personality isbenefits + brand personality! So personality isthe cause while image is the effect.the cause while image is the effect.

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Brand ImageBrand Image

Image and country of originImage and country of origin

Image and celebrity endorsement Image and celebrity endorsement

Image and imageryImage and imagery image is product seenimage is product seenfrom consumers perspective, imagery isfrom consumers perspective, imagery isconsumer seen from the products perspective!consumer seen from the products perspective!

Which prospective or current consumer will buyWhich prospective or current consumer will buyFiama di wills soap?Fiama di wills soap?

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Brand ImageryBrand Imagery

3 types:3 types:

1.1. Sacred (almost a ritual)Sacred (almost a ritual) Parachute hair oilParachute hair oil

2.2. Secular (break the routine)Secular (break the routine) Kit Kat Kit Kat 3.3. Mediating (1+2)Mediating (1+2) Grandma recommendingGrandma recommending

new brand instead of old onenew brand instead of old one CocoCoco--carecare

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Brand personalityBrand personality

Be single minded in communication of coreBe single minded in communication of corebrand valuesbrand values

LifebuoyLifebuoy tandurustitandurusti ColgateColgate ring of confidencering of confidence

BournvitaBournvita tan ki shakti, man ki shaktitan ki shakti, man ki shakti

GilletteGillette the best a man can get the best a man can get

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Branding (01)