7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
1/21
Chapter 1
Introduction
toBranding
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
2/21
Contents
Concept of branding
Significance of branding
How branding evolved Need to build strong brands
Key issues in branding
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
3/21
The status dilemma
Neha is a working woman, and she needs a lunch box
to carry to office. She remembers her father leaving
for work every morning clutching his colourless
stainless steel lunch box. But Neha shudders to evenvisualize the look on her colleagues faces if she
walks into office with such a lunch box. Neha has a
number of options available in the market to choose
from, but she needs bright trendy containers, whichcan keep the food fresh for longer periods of time.
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
4/21
Concept of branding
For the consumers, a brand is a product. But
for the maker or the seller, a brand is an
identifier of its goods and services and a
promise of consistently delivering the
features/benefits that the consumers desire
from the brand.
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
5/21
Brand to the rescue
Neha found exactly what she was looking for when her friendMeena brought her lunch box to office one day. Meena toldher about Tupperwarea global brand, recognized the worldover. Tupperware products were excellently designed and hadwon prestigious awards like the Red Dot award in 2009 (an
award for excellence in product design instituted by DesignZentrum Nordrhein Westfalen in Essen, Germany), and thecompany was also featured in Forbes.com Platinum 400Americas Best Big Companies List for the sixth time in a rowin 2009. Tupperware had a range of high quality, lightweight,
rust- and break-proof, colourful, airtight, stylish containers,which kept food fresh for longer, thus avoiding waste(Superbrands 2009). They were leak-proof as well, whichmeant that Neha could carry and store curry and gravy items.
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
6/21
Significance of Branding
Branding is one of the key issues and biggestchallenges in corporate and marketing strategies.
A product that is not branded is a commodity, suchas sugar, rice, etc., and while purchasing a
commodity, one only considers its physical attributesand benefits.
A brand, on the other hand, is a lens through whichthe consumers view the product and the firm.
It is basically a product with added dimensions,which make it different in some way or the otherfrom other products that satisfy the same needs
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
7/21
Brand defined
According to the American Marketing
Association, Brand is defined as:
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
competitors
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
8/21
Historical perspective of branding
Studies show that brands and branding are not a recent phenomenon.
In fact, branding has existed since ages and can be traced back to the timewhen human civilizations originated.
Early language was developed to convey information about two thingsreligion and business transactions. Business transactions (who isinvolved, what was transacted, and how much) were recorded usingsymbols.
These symbols were pictorial in nature (also known as brand marks,logotypes, or icons) and were sometimes accompanied by some text anduse of colour.
These early brands can be called proto-brands and their elements, i.e.,the use of a logo, text, and colour are important for brands even today(Moore and Reid 2008).
Take for example the logo of Anchor Electricals, which includes a pictorialsymbol, text, and red and white colour combination
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
9/21
Historical perspective of branding
Brand
Characteristics
Early Bronze IV
(22502000 BCE)
The Indus Valley
Middle Bronze
Age (20001500
BCE)
Shang China
Late Bronze
Age (1500
1000 BCE)
Cyprus
The Iron
Age
revolution
(1000500
BCE)
Tyre
The Iron
Age
(825336
BCE)
Greece
Moder
n Times
Information logistics
Information origin
Information quality
Image power
Image value
Image personality
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
10/21
The top 20 most trusted brands, 2010
Brand Rank (2010) Rank (2009) Brand Rank (2010) Rank (2009)
Nokia Mobile
Phones
1 1 Close Up 11 11
Colgate 2 2 Goodnight 12 21
Lux 3 3 Rin 13 43
Dettol 4 5 Tata Salt 14 7
Britannia 5 9 Pepsi 15 26
Lifebuoy 6 4 Maaza 16 46
Clinic Plus 7 15 Vodafone 17 30
Ponds 8 16 Maggi 18 35
Fair and Lovely 9 18 Glucon D 19 14
Pepsodent 10 8 Thums Up 20 39
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
11/21
What can we brand?
A servicefor example, Life Insurance Corporation, StateBank of India
A productfor example, Nokia mobile, Lux soap, Knorr soup
A storefor example, Big Bazaar, Shoppers Stop
A place/geographic locationfor example, Taj Mahal, India(the Incredible India! campaign)
A personfor example, Aamir Khan, Amitabh Bachchan
An ideafor example, World Wildlife Fund
An online organizationfor example, Amazon, Make my Trip An organizationfor example, UNICEF
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
12/21
Difference between a Product and a Brand
Attribute
Product
usesQuality/value
Functional
benefits
PRODUCT
Scope
BRAND
Self-expressive
benefits
Symbols
Emotional
benefits
User
imagery
Brand
personality
Organizational
associations
Brand
customerrelationship
Country of
origin
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
13/21
Rationale for Building a Brand
Benefits of Building Strong BrandsOrganizational Perspective
Identifier
Shorthand for information
Legal protection
Differential advantage Unique associations
Price premiums
Enhancing customer loyalty
Higher market share Inelastic response to price increase
As a barrier to entry of other brands
Can be bought and sold as an asset
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
14/21
Rationale for Building a Brand
Benefits of Building Strong Brands Customer Perspective
Source of identification
Heuristic or proxy for quality
Source of evaluation A tool to simplify decision making
Risk reducer Financial risk, performance risk, time risk, social risk,
psychological risk
Tool to express self image
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
15/21
Types of Brands
Functional brands
Image brands
Experience brands
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
16/21
Branding challenges
Intelligent and educated customers
Growth of private labels
Brand proliferation
Increasing trade power
Media fragmentation and the rise of new media
Increasing cost of product introduction and support
Increasing job turnover
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
17/21
Overcoming branding challenges
Brand equity
Brand loyalty
Brand switchers
Habitual buyers
Switching-cost loyal
Friends of the brand
Committed customers
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
18/21
Historical perspective of branding
Switching-cost loyalSatisfied with the brand and have a switching cost
Competitors need to overcome switching cost
Committed
customer/consumerTake pride in using the
brand
Recommend brand to othersFriends of the brand
Emotional attachment with the brandTruly like the brand and consider it as a friend
Level 2
Level 3
Level 4
Level 1
Level 5
Brand switchersIndifferent to the brand name
Buying decision based on price, availability etc and
Brand name does not play a significant role in the purchase decisions
Habitual buyers
Satisfied buyers, absence of any dissatisfaction
Vulnerable to competitors stimulations
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
19/21
Key issues in branding
Whether to brand or not
How to build brand equity
How to measure brand equity
Understanding customers and how they purchase a brand How to position the brand
Which marketing mix strategies to choose
How to design branding strategies
How to manage brands over time
How to manage brands across geographical boundaries
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
20/21
Quick Recapitulation
Concept of branding
Significance of branding
How branding evolved Need to build strong brands
Key issues in branding
7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding
21/21
Questions?