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Brands

What is a Brand ?
Tough Question
◦ Brands are intangible assets and conditional one
Simply put: brand is a name that influences **
buyers- It will exist only when it has acquired
the power to influence the market.
** Influence relies on
◦ REPRESENTATION –system of mental
association
◦ RELATIONSHIP-emotional relationship
◦ Keller
A brand is a system of signs and
symbols that engages the consumer in
an imaginary/symbolic process that
contributes tangible value to a
product offering.
 Customer empowerment:  Minimal differentiation
internet, media –Savvy  Increased competition
customers  Increasing costs of
 Brand proliferation-
production, promotion,
 Media fragmentation support
 Erosion of traditional  Focus on short-term
media and growth of new  Growth of private labels
platforms  Increasing trade power

The Challenges
PORTER’S UNLEASHED!
Even brand communication is shifting
SHARE SHARE OF CONVERSATION
OF
VOICE DIALOGUE
MONOLOGUE IDEA DRIVEN/LED
TV LED TV AS A PART OF 360
360 AROUND TV
Consumers Manufacturers

 Identification-source  ID to manage product


 Assigning responsibility to  Providing legal protection
manufacturer  Signalling quality
 Risk reducer- function,
 Endowing product with
physical, financial, social,
psychological, time unique associations
 Search cost reducer  Competitive advantage
 Promise, bond, pact  Financial returns
 Symbolic device
 Sign of quality

Why Brand ?
Brands are Living
System
BRAND CONCEPT (VALUE PROPOSITION)
TANGIBLE AND INTANGIBLE

PRODUCT/SERVICE
BRAND NAME, SYMBOLS SEMIOTIC
EXPERIENCE
INVARIANTS
exploring signs and symbols as if they behave like
a language, and within the context of culture
BRAND THEORY CLASSIFICATION
APPROACH KEYWORD BRAND CONSUMER MANAGERIAL SUPPORTING BRAND VALUE
PERSPECTIVE PERSPECTIVE KEYWORD THEME CREATION
ECONOMIC MARKETING MIX FUNCTIONAL ECONOMIC MAN CONTROL 4PS MARKETER
PRE 85 CONSUMER
IDENTITY CORPORATE CORPORATE STAKEHOLDER MONOLOGUE REPUTATION , AS ABOVE
MID 90S BRANDING, IMAGE IDENTITY
CONSUMER CBBE, BRAND COGNITIVE COMPUTER PROGRAMMING INFO-PROCESSING CONSUMER
1993 IMAGE PSYCHOLOGY MARKETER
PERSONALITY BRAND HUMAN PSYCHOLOGICAL SYMBOLIC PERSONALITY, MARKETER
1997 PERSONALITIES EXCHANGE CONSUMER SELF CONSUMER
RELATIONAL BRAND HUMAN EXISTENTIAL BEING FRIENDSHIP ANIMISM , AS ABOVE
1998 RELATIONSHIP RELATIONSHIP
THEORY
COMMUNITY 2001 BRAND SOCIAL TRIBE MEMBER DISCRETION CONSUMPTION MARKETER
COMMUNITIES, SUBCULTURE
INTERNET CONS CONS
CULTURAL GLOBALIZATION, CULTURAL HOMO MERCANS BIRD PRESPECTIVE CITIZEN-BRAND MARKETER
2000 ICONS, NO LOGO PROSPECT
CULTURE

CONSUMER

WHAT IS A BRAND ?
ASSETS-STRENGTHS-VALUE
Assets(learnt mental association and affects)
--- awareness, reputation, perceived value ,
personality, patents
Brand Strengths(status-behavioral)--- Market
share, leadership, penetration, growth, loyalty
rate, price premium
Brand value(future projection)--- Net
discounted cash flow- post cost of capital to
produce and run the business and the cost of
marketing
Classical Model of Consumer Choice
Need/opportunity recognition
Information search
Evaluation of alternatives
Purchase
Outcomes of purchase
Keywords in Brand Management
Architecture: structure organising the
portfolio : monolithic-individually branded
:endorsed brands
Audit: health-a. inventory –internal detailed
description as to how exactly the brand is
marketed b. exploratory- what the brand
means to the consumer
Community: social interactivity with the brand
via community . implies shift in negotiating
power
Culture: either organisational culture of brand
or brand’s role in the broader cultural landscape
Equity: value in terms of strategy or finance

a consumer perceives BE as the value added to


the functional product/service by associating it
with the brand name
Keller- build only via strong-favourable-unique
brand association and always in this order.
Essence: every brand has an identity which
contains an essence/DNA/Kernel/mantra. The
heart and soul of the brand, often abstract but
uncompromised.
◦ EMOTIONAL MODIFIER, DESCRIPTIVE MODIFIER, BRAND
FUNCTION
Extension: If brand is extended to a product
category or to clients in a way that does not
fully respect the core of the brand, both brands
risk dilution.
Genealogy: Brand through transition of culture-
success depends on how large role they play.
Icon: status
Identity: set of associations which is created
and maintained. Vision, uniqueness, clear-
cut-long lasting and permanent in nature
Loyalty: CA>>>CR
Personality: extroversion-agreeable-consci-
ousness/cultured-emotional stability-
openness- the rule of 5
Portfolio : range, - depends on architecture,
strategy and policy
Positioning: TOM, Al Reis
Relation: - how and why brand is consumed.
Brand as partners
Revitalization: finding and re-inventing the
brand vision for existing/new customers.
Strategy: enhancing internal and external
opps. For the brand –strategic, visionary and
proactive.
Stretch: identity –into NP categories, co-
branding, trick is not to dilute essence.
Co-branding: alliance, bundling
Corporate Brand: Brand House vs house
of brands
Employee Branding: living the brand-
Disney, Fedex
Employer Brand: HCL, Infosys, Google
Product Brand:
Service Brand: --the x-factor is highest
Viral Branding: consumers take over the
brand
Perception is more important than reality !
Brand Attributes Consumer Benefits

Involvement • Social language of the brand


• Self –enhancement
•Symbolic Meaning
• Self-positioning
Emotional •
•Personal authenticity transformation of experience
Realm • Safe choice
•Reassurance

Functional Realm Keeping promises of •Easy choice


performance •Certainty in an uncertain
world
•Replicability of satisfaction
Involvement: Factors driving this
Low High

inexpensive Price expensive

Purchase Frequency
Symbolic Meaning

Social
visibility
Time commitment

Potential to harm

Technical
complexity

No product is low involvement for every person all the time


Customer-based Brand Equity Model
Four Questions Customers ask of Brands
1. Who are you? (brand identity)
2. What are you? (brand meaning)
3. What about you? What do I think or feel
about you? (brand responses)
4. What about you and me? What kind of
association and how much of a
connection would I like to have with
you? (brand relationships)

2.26
Customer-Based Brand Equity Pyramid

4.4. RELATIONSHIPS
RELATIONSHIPS ==
RESONANCE What
Whatabout
aboutyou
youand
andme?
me?

3.3. RESPONSE
RESPONSE ==
JUDGMENTS FEELINGS What
Whatabout
aboutyou?
you?

2.2. MEANING
MEANING ==
PERFORMANCE IMAGERY What
Whatare
areyou?
you?

1.1. IDENTITY
IDENTITY ==
SALIENCE
Who
Whoare
areyou?
you?

2.27
Customer-Based Brand Equity Model

Consumer- INTENSE,
INTENSE,ACTIVE
ACTIVE
LOYALTY
LOYALTY
Brand
Resonance

RATIONAL
RATIONAL&&
Consumer Consumer EMOTIONAL
EMOTIONAL
Judgments Feelings REACTIONS
REACTIONS

POINTS-OF-
POINTS-OF-
PARITY
PARITY&&
Brand Brand POINTS-OF-
POINTS-OF-
Performance Imagery DIFFERENCE
DIFFERENCE

DEEP,
DEEP,BROAD
BROAD
Brand Salience BRAND
BRAND
AWARENESS
AWARENESS
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES


SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, DURABILITY SITUATIONS
& SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
Salience Dimensions
Depth of brand awareness
◦ Ease of recognition and recall
◦ Strength and clarity of category membership
Breadth of brand awareness
◦ Does the brand come to mind in a variety of
consumption situations? (Soft drinks have great
breadth)

2.30
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES


SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, DURABILITY SITUATIONS
& SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
Performance Dimensions
Primary ingredients and supplementary features
(Dove/Intel/Teflon)
Product reliability (consistency of performance
over time and from purchase to purchase),
durability, and serviceability (ease of repairing)

2.32
Performance Dimensions
Service effectiveness, efficiency (speed and
responsiveness), and empathy
Style and design
Price

2.33
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES


SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, DURABILITY SITUATIONS
& SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
Imagery Dimensions
User profiles
◦ Gender: Marlboro is masculine; Venus razors are feminine
◦ Age: Pepsi is very young
◦ Income: BMW is for yuppies
◦ Psychographic (lifestyle)
Purchase and usage situations
◦ Type of channel, specific stores, ease of purchase
◦ Time (day, week, month, year, etc.), location, and context of usage
Personality and values
◦ Sincerity, excitement, competence, sophistication, and ruggedness
History, heritage, and experiences
◦ Nostalgia
◦ Memories
2.35
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES


SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, DURABILITY SITUATIONS
& SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
Judgment Dimensions
Brand
 quality
Brand consideration
◦ Value
◦◦ Relevance
Satisfaction
 Brand
 Brand superiority
credibility
◦ Expertise
◦ Differentiation
◦ Trustworthiness
◦ Likeability (Is it fun, interesting….)

2.37
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES


SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, DURABILITY SITUATIONS
& SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
Feelings Dimensions
Warmth (Airtel, Vodafone)
Fun (Disney)
Excitement (Radio Mirchi, Fever 104)
Security (Dettol, J&J)
Social Approval (Mercedes)
Self-respect (Raymond)

2.39
Sub-Dimensions of CBBE Pyramid

LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PRIMARY CHARACTERISTICS & USER PROFILES


SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, DURABILITY SITUATIONS
& SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY & EMPATHY HISTORY, HERITAGE
STYLE AND DESIGN & EXPERIENCES
PRICE

CATEGORY IDENTIFICATION
NEEDS SATISFIED
Resonance Dimensions
Behavioral loyalty
◦ Frequency and amount of repeat purchases
Attitudinal attachment
◦ Love brand (favorite possessions; “a little pleasure”)
◦ Proud of brand
Sense of community
◦ Kinship
◦ Affiliation
Active engagement
◦ Seek information
◦ Join club
◦ Visit website, chat rooms

2.41
Brand Building Implications
Customers own brands.
Don’t take shortcuts with brands.
Brands should have a duality – head and heart.
Brands should have richness.
Brand resonance provides important focus to
Marketing.

2.42
Brand Identity
Identity
The identity “is a brand’s DNA
configuration, a particular set of brand
elements, blended in a unique way, which
determines how that brand will be
perceived in the marketplace” (Upshaw,
Laynn B)
Brand Identity is NOT
Brand Image
Identity precedes image
An image results from decoding a
message, extracting meaning, interpreting
signs
Image refers to how the brand is
‘actually’ perceived
Brand identity should reflect the brand’s
enduring qualities, even if they are not
salient in the brand image
Identity requires answering the following
questions
What is the brand’s particular vision and aim?
What makes it different?
What need is the brand fulfilling?
What is its permanent nature?
What are its value or values?
What is its field of competence? Of legitimacy?
What are the signs which make the brand
recognisable?
Brand identity perspectives
Brand identity
A brand’s identity can be viewed from four
perspectives:
◦ brand as product
◦ brand as organization
◦ brand as person
◦ brand as symbol
Viewed from these perspectives, the identity
develops texture and depth
Brand identity
Brand as Product
◦ Product Scope: Associations with product
class e.g. Dettol, Maggi, Frooti, Virgin,
Kingfisher, Philips, Apple. Recall when
product class is cued
◦ Product Attributes: Dove 1/4 moisturizing
cream; Free limo pickup and massage on
Virgin Atlantic
Brand as product
◦ Quality/value (Gillette: “The best a man
can get”)
◦ Use occasion (Burnol, Glucon D, Band
Aid, Raymond, Cadbury’s Celebrations,
Coke)
Brand as product
◦ Users (Saffola, Equal, Pepsi, Fair &
Lovely)
◦ Country of Origin or region
(Champagne: France; Automobile
engineering: Germany; Pizza: Italy;
Darjeeling Tea; Goan Feni and Port
Wine; Mathura ke pede; Lonavala ki
chiki; Bombay ka vada pav)
Brand as product
Brand “prototype’’
The brand actually injects its values in the
production and distribution process as
well as in the corollary services offered at
the point of sale
Brand identity
Brand as Organization
◦ Society/Community orientation
◦ Perceived quality (J&J)
◦ Innovation (Apple, Gillette, Sony)
◦ Concern for customers (Nokia’s handling of
battery crisis)
◦ Presence and success
◦ Local vs global
Brand identity
Brand as Person
◦ Personality (e.g. sincere/genuine, energetic,
rugged, competent, sophisticated, sense-of-
humour,...)
◦ Brand-customer relationships (e.g., friend,
adviser,…) (Very important for financial
brands especially)
Brand identity
Brand as symbol: Anything that
represents the brand
◦ Visual imagery and metaphors e.g. Nike
Swoosh, Golden arches, Mercedes star;
Ambuja cement logo, Onida Devil
◦ Brand heritage (Darjeeling Tea; Marlboro;
Seagram’s 100 Pipers; Heritage hotels in
India)
The identity structure
The Core Identity &
Extended Identity & Brand Essence
The identity structure

Extended Identity

Brand essence

Core Identity
The core identity
The most important elements of the brand
identity
Reflects the strategy and values of the
organization
Associations are likely to remain constant
as the brand travels to new markets and
products
McDonald’s: QSCV
The extended identity
Elements that provide texture and make
the brand holistic
Brand personality, logo, jingle, product
scope, characters, brand-consumer
relationship are some examples
Brand essence
A single thought that captures the soul of
the brand
Resonates with the consumer
Drives the brand value proposition
Differentiates the brand from competition
Timeless
Brand essence examples
Axe: Masculine attractiveness
Kodak: Family preservation
Amex: Sign of personal success
Nivea: Pure love and care
Nike: Excelling
McDonald’s: ?
Brand value proposition
“A brand’s value proposition is a
statement of the functional, emotional,
and self expressive benefits delivered by
the brand that provide value to the
customer. An effective value proposition
should lead to a brand-customer
relationship and drive purchase decisions”
(David Aaker)
Functional benefit
Most visible and common basis for a
value proposition
Benefit based on product attribute
Provides functional utility
Examples: Volvo is a safe car; Coke
provides refreshment and taste; Maruti
800 is a very basic car for transportation
Emotional benefit
When the purchase or use results in a
positive feeling the brand is said to
provide an emotional benefit
“Safe in a Volvo”
“Energetic and vibrant when drinking
Coke”
“Maruti 800: My first car”
Self-expressive benefit
Some brands become vehicles to express
a part of our self-identity
iPod: Cool quotient
Marlboro: Macho
Subhiksha/Big Bazar: Frugal prudence
Value propositions: BMW
Functional Benefits: A BMW car handles
well, even on ice
Emotional Benefits: Excited in a BMW
Self-Expressive Benefits: Sophisticated
and successful in a BMW
Marlboro brand identity
Brand Essence: Rugged individuality
Core identity: Cowboy imagery; American
heritage
Extended Identity:

- Brand Personality: Unshakable self- belief;


loner/aloof; no nonsense; independent; always
in control; fearless; leader
Marlboro brand identity
- Basis for relationship: Escape from the
pressure, stress of mundane life. Being
one with nature. Strong symbol of
freedom and adventure
- Line extensions: Red, Lights, Ultra
Lights, Menthol
- Brand extension: Marlboro Classics
(Clothing; accessories like belts, hats,…)
Marlboro brand identity
- Logo and attractive/distinctive packaging
- Imagery:
* Cowboys; Marlboro man; herding
livestock; Marlboro Country
* Horses; saddle; rugged terrain; jeans;
jackets; boots; hat
Liril brand identity
Brand essence: Come alive!
Core Identity: Lime freshness
Extended Identity:

- Product scope: Soaps, deo, talcum powder


- Personality: Bubbly exuberance
- User: Young, urban
- Associations: Karen Lunel, waterfall,
excitement
Liril brand identity
- Sensory: Predominantly lime fragrance,
soothing green colour

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