Branding and Positioning

Chapter 2

What is Branding?

• Assigning a name, phrase, design, symbols or a combination of these to a product, service, or a group of complimentary products

Discussion Points:• How important are brand names?• How important are brand names for

clothes? Why?• What additional product categories

are brand names important?• What product categories are brand

names not important?

What image is being conveyed by this Porsche advertisement?

What image is being conveyed by the Porsche Web site?

www.porsche.ca

Are the images consistent?

Brand Value – Customer Perspective

o Provides quality assurance in purchase decisions

o Reduces search time in purchase decisionso Provides psychological reinforcement and social

acceptance of purchases

Brand Value – Company Perspective

A strong brand can generate many benefits including:

o Positive customer feelings to new products and services

o Allows a company to charge more (if the brand is recognized and respected)

o Customer loyalty which may lead to more purchaseso Positive word of mouth endorsementso Higher level of channel powero The ability to attract quality employeeso More favourable ratings by financial observers and

analysts

Developing Brand ValueFrom introduction to post-purchase behaviouro Five dimensions:

o Brand awarenesso Associations customers make with brandso Attitudes customers have about the brand

performanceo Brand attachment by the customero Brand activity – how do customers use the

brand?

Discussion Exerciseo List the names of five brands you have a

negative impression of?

o Why is the brand(s) conceived negatively?

Successful Brand Development

o Commitment to the brando Market penetrationo Research and understanding the brand’s

target marketo Building effective expansion programs and

fending off competitors.

Video – Nike

Questions for Discussion:

o What do you think of Nike’s Brand Management?

o What can other athletic apparel company’s learn from Nike?

What’s Happening?

• http://m.techcrunch.com/2013/01/11/now-app/

Building Brand Equity

Brand Equity – The value that stakeholders assign to a brand over and above the value of an equal but unbranded product

o Research current brand imageo Decide what makes the brand uniqueo Communicate brand’s uniquenesso Spend on advertising/communicationo Deliver on uniqueness

Companies oftencreate product iconsto develop an identity for their products, and increase brand equity.

Why is the Mr. Clean icon an effective representative for its product?

Benefits of Brand Equity

o Higher priceso Higher gross marginso Reduces customer switchingo Greater demand for the producto Prevents erosion of market share

Types of Brandso Family brands

o Multiple products under one brando Transfer associations

o Brand extension o New good or service, usually related to the existing

brando Flanker brands

o New brand within current categoryo www.marriott.ca

o Co-brandingo Private Label Brands

Flanker Brands Sold by Procter & Gamble

Cosmetics CoverGirlMax Factor

Dish washing

Hair care

CascadeDawnIvoryJoy

AussieHead & ShouldersHerbal EssencesInfusion 23Pantene

Ingredient Branding

Cooperative Branding

Complementary Branding

Co- Branding

Forms of Co-Branding

Changes in Private Brands

1. Quality improvement.2. Lower prices.3. Higher store loyalty.4. Lower loyalty for manufacturer brands.5. Increase in advertising of private brands.6. Increase in quality of private brand in-store displays.

o Focus on core brandso Increase advertisingo Introduce new productso Focus on in-store selling, packagingo Use alternative methods of marketing

Strategies Used to Combat Private Labels (National Brands)

Successful Brand Extensionso Lipton tea – Lipton soup mixeso Kodak film – Kodak cameras and batterieso Ivory soap – Ivory shampoo, dishwashing liquido Barbie dolls – Barbie games, furniture, clotheso Honda bikes – Honda cars, lawnmowers,

generators

Unsuccessful Brand Extensionso Dunkin’ Donuts – Dunkin’ Donuts cerealo Harley Davidson Bikes – Harley Davidson

cigaretteso Levis Jeans – Levis business wearo Mr. Coffee coffee makers – Mr. Coffee coffee

Factors in Brand Management

o Maintaining a Brands ImageoConsistency is key

o Rejuvenating a BrandoMay be necessary if firm has encountered

negative publicityo Repositioning a Brand

oMay be necessary when a brands target market has shrunk or firm can no longer meet customer expectations

Positioningo The process of creating a perception in the

consumer’s mind regarding the nature of the company and its products relative to competitors

o A product’s position is based on two elements:o The product’s standing relative to the competitiono How the product is perceived by consumers

o Positioning is an important criteria in brand development

Positioning Strategieso Attributeso Competitorso Use or applicationo Price-quality relationshipo Product usero Product classo Cultural symbol