S 12 Branding

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Branding and Brand Equity

Session 11

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Learning Outcomes

Describe the principles of branding and explain the

different types of brands

Understand the fundamentals of brand equity, and its

management.

Understand the important decisions in developing a

branding strategy.

Review Interbrands global ranking and Brand Equity

Indian Brands ranking

Review the 22 Immutable Laws of Branding

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Cinthol

Launched in 1956. Stayed as a single product for threedecades. Re-launched on freshness platform.

Variants such as Cinthol Lime, Cinthol Fresh, Cinthol

Cologne, Cinthol Deo, Cinthol Fresh Aqua.

Brand extension to include deodorant sprays and talcumpowder.

Main target Indian outdoor man.

Use of film stars as brand ambassadors to communicate the

freshness and deodorant promise.

Change in portfolio, communication, packaging and other

marketing mix keeping the same basic promise.

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Brand and Branding

4

A brandis a name, term, sign, symbol or design,or a combination of them, intended to identify the

goods or services of one seller or group of sellers

and to differentiate them from those of

competitors.

Branding is endowing products and services with

the power of the brand.

What was the origin of the word brand and branding?

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The Role of Brands

5

Identify themaker

Help indifferentiation

Developcustomer

loyalty

Assist inintegratedmarketing

communication

Signify qualityServe as a

competitiveadvantage

Secure pricepremium

Contribute tocorporateidentity

programme

Provide legalprotection

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Brand Equity

Measure of the value of a brand in terms of thecustomer viewpoint.

Three key ingredients of consumer based equity are:

Differences in consumer responses. Lack of differences

result in prices being the main deciding factor.Consumers brand knowledge through images,

experiences and beliefs.

Perceptions, preferences and behaviour.

It results in better prices, market shares andprofitability.

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Advantages of Strong Brands

7

Improved

perceptions of

product

performance.

Greater loyalty.Less vulnerability

to competitive

marketing actions.

Less vulnerabilityto marketing

crises.

Larger margins.

More inelasticconsumer

responses to price

changes.

Greater tradecooperation and

support.

Increasedmarketing

communication

effectiveness.

Additional brandextension

possibilities.

Possible licensingopportunities.

Greater financialmarket returns

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Brand Equity Models

Brand Asset Valuator (BAV)

Brandz

Brand Resonance Model

8

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Brand Asset Valuator

Developed by Young and Rubicam based on researchwith 800,000 customers across 51 countries.

It compares the brand equity of thousands of brands

across hundreds of categories.

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The Four Brand Pillars of BAV

Differentiationhas three important componentsDifferent (Standing Out) Unique (Brand Personality) and

Distinctive (Brand Prestige and Pricing Power)

As brands mature differentiation declines

Relevance is the factor that attracts and retains thecustomers. It is the staying power.

Esteemthe extent to which consumers like a brand and

hold it in high regard. It denotes popularity and quality.

KnowledgeCustomers have understood what the brand

stands for

Measuring the relationship among the four pillars is crucial

in diagnosing the health of the brand.

10

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Brand Strength and Brand Stature

11

Brand Asset

Valuator

Brand

Strength

Brand

Stature

Differentiation Relevance Esteem Knowledge

POTENTIAL FOR

GROWTH

CURRENT

STRENGTH

LEADING LAGGING

Brands ability to defend itself

and generate economic value

Brands pervasiveness in the market. It

declines after brand strength erodes.

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BAV Power Grid

12

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Brand Dynamics Pyramid

Nothing else beats itBonding

Does it offer some thingbetter than others?

Advantage

Can it deliver?Performance

Does it offer me

some thing ?Relevance

Do I knowabout it?Presence

Strong RelationshipHigh share of categoryexpenditure

Weak ShareLow share of category

expenditure

13 Developed by Millward Brown and WPP. Brand building follows a sequential seriesof steps, each contingent upon successfully accomplishing the preceding one

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Brand Resonance Pyramid

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Building Brand Equity

15

Brand elementsIntegrated marketing activities

Brand associations

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Brand Elements

16

Branding

Jingles..\Videos\AirTel Ad -

A.R.Rahman.mp4

..\Videos\Airtel old.flv

..\Videos\Boss FilmThe

Smartphone Network.mp4

Characters

Logos

URLs

Slogans

Brand Name

Symbols

www.amazon.com
http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Airtel%20old.flvhttp://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Boss%20Film%20%E2%80%93%20The%20Smartphone%20Network.mp4http://localhost/var/www/apps/conversion/tmp/Videos/Airtel%20old.flvhttp://localhost/var/www/apps/conversion/tmp/Videos/Airtel%20old.flvhttp://localhost/var/www/apps/conversion/tmp/Videos/Airtel%20old.flvhttp://localhost/var/www/apps/conversion/tmp/Videos/Airtel%20old.flvhttp://localhost/var/www/apps/conversion/tmp/Videos/Airtel%20old.flvhttp://localhost/var/www/apps/conversion/tmp/Videos/Airtel%20old.flvhttp://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4http://localhost/var/www/apps/conversion/tmp/Videos/AirTel%20Ad%20-%20A.R.Rahman.mp4

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Brand Elements

17

Brand element choice criteriaMemorable and short

Meaningful and credible

Likeable and appealing

Transferable across products and geographiesAdaptable and updatable

Protectableshould not become generic

Developing brand elements

Should be inherently descriptive and persuasive.

Should capture intangible benefitsLIC, Welcomgroup

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Designing Holistic Activities

18

Brands are built through different touch points andnot only through advertising.

Brand contacts are now being made through:

Consumer communities

Events marketingSponsorships

Interactions with company personnel

Social cause marketing

Integrated marketing activities across product,packaging, price, place and promotion.

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Leveraging Secondary Associates

Brand Equity can also be builtby linking the brand to other

information in customer

memory

Links can be to:

CompanyGeography

Other brands

Characters

Endorsements

Sponsorships

Awards

19

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Brand Communities

A business strategy not a marketing strategy.Meant to serve the people that comprise them.

Cultivate the communities and the brand will grow.

Communities should have advocates as well as critics.

They should not concentrate only the opinion leadersbut build the community as a whole.

Social networks are only a tool and not the strategy.

Successful brand communities need not be manged

and controlled.

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Measuring Brand Equity

21

Marketing

ProgramInvestment

CustomerMind-set BrandPerformance ShareholderValueVALUESTAGES

Product

Communication

Trade

Employee

Other

Awareness

Associations

Attitudes

Attachments

Activities

Price premiums

Price elasticities

Market share

Expansion success

Cost structure

Profitability

Stock Price

P/E Ratio

Market

Capitalisation

Program

Multiplier

Customer

Multiplier

Market

Multiplier

Clarity

Relevance

Distinctiveness

Consistency

Competitive reactions

Channel support

Customer size and

profile

Market dynamics

Growth potential

Risk profile

Brand contribution

MULTIPLIERS

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Interbrand Brand Valuation Method

On a 100 point

scale using 10

dimensions

Net Operating Profit After Tax

Weighted average cost of Capital

Difference = Economic Profit

calculated for five year forecast

Demand for a brandin excess of demand

if unbranded

conducted through

survey, expert panel

and historical data

Inverse of brandstrength on an

algorithm scale

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Top Ten Global Brands - 2013

RANKLY

Rank BRANDVALUE

$ million CHANGE

1 2 Apple 98,316 +28%

2 4 Google 93,291 +34%

3 1 Coca Cola 79,213 +2%

4 3 IBM 78,808 +4%

5 5 Microsoft 59,546 +3%

6 6 GE 46,947 +7%

7 7 McDonalds 41,992 +5%

8 9 Samsung 39,610 +20%

9 8 Intel 37,257 -5%

10 10 Toyota 35,346 +17%

01-23 Source: Best Global Brands 2013 by Interbrands

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Indias Top Brands - 2014

24

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25

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26

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27

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28

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Branding

Types Names

29

Manufacturer Brands

Private Label Brands

Generic Brands

Individual names

Blanket family names

Corporate name individualname combination

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Devising a Branding Strategy

30

Develop new brand elementsApply some of the existing brand elements

Use a combination of old and new branding elements

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Branding Terms

31

All products sold under a particular brandBrand line

Assortment of all brand linesBrand mix

Specific brand lines made for a channelBranded variants

Use of an established brand to introduce a new productBrand extension

Combining new brand with an existing brand (parent brand)Sub-brand

Expansion within categoryLine extension

Expansion to other categoriesCategory extension

Licensing of brand namesLicensed product

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Brand Portfolio

32

A set of all brands and brand lines a particular firmoffers for sale in a particular category or marketsegment.Basic principle is to maximise customer coverage andavoid brand overlap.Ability to add or drop brands to maintain suitableportfolioRoles played by brands in portfolios:

Flankers

Cash cowsLow end entry levelHigh end prestige

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Brand Extensions

dvantages Disadvantages

33

Improved odds of new

product success

Cost reduction in launchRenew interest and

reinforce parent brand

Line extension trap

Brand dilution

Cannibalisation effectLosing out on building a new

strong brand

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Cobranding

34 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

IngredientBranding

CooperativeBranding

ComplementaryBranding

Types o f

Cobranding

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Brand Personality

Customers will align with brands which reflect their own personality

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The 22 Immutable Laws of Branding

The power of a brand is inversely

proportional to its scopeThe Law ofExpansion

A brand becomes stronger when

you narrow its focus

The Law of

Contraction

The birth of a brand is achieved

with publicity, not advertising

The Law ofPublicity

Once born, a brand needs

advertising to stay healthy

The Law of

Advertising

36

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A brand should strive to own a word in

the mind of the consumerThe Law of the

Word

The crucial ingredient in the success of

any brand is its claim to authenticity

The Law of

Credentials

Quality is important, but brands are not

built on quality alone

The Law ofQuality

A leading brand should promote the

category not the brand

The Law of the

Category

37

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In the long run a brand is nothing

more than a nameThe Law of the

Name

The easiest way to destroy a brand

is to put its name on every thing

The Law of

Extensions

In order to build the category, a

brand should welcome other brands

The Law ofFellowship

One of the fastest routes to failure is

giving a brand a generic name

The Law of the

Generic

38

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Brands are brands. Companies are

companies. There is a differenceThe Law of the

Company

What branding builds, sub-

branding destroys

The Law of

Sub-brands

There is a time and place to launch

a second brand

The Law ofSiblings

A brands logotype should be

designed to fit the eyes. Both eyes.

The Law of

Shape

39

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A brand should use a colour that is

opposite of its major competitorsThe Law of

Colour

There are no barriers to global branding.

A brand should know no borders.

The Law of

Borders

A brand is not built overnight. Success is

measured in decades, not years.

The Law ofConsistency

Brands can be changed, but only

infrequently and very carefully.

The Law of

Change

40

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No brand will live

forever. Euthanasia is

often the best solution

The Law of

Mortality

The most important

aspect of a brand is itssingle mindedness.

The Law of

Singularity

41

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Next Session

Whats in a Name Case

Deliverables

Single sheet by all studentsPower point by all groups

ReadingChapter 10

Documents

S 12 Branding