BRAND Any brand is a set of perceptions and images that represent a company, product or service brand is the identity

of a specific product, service, or business A brand can take many

forms, including a name, sign, symbol, color combination or slogan.

Brand is the personality that identifies a product, service or company (name, term, sign, symbol, or design, or combination of them) and how it relates to key constituencies: customers, staff, partners, investors etc.

There are different ways to look at the meaning of brand and branding in simple terms:

y y

y y y y y y Importance of Brands to Consumers  Identification of the source of the product  Assignment of responsibility to product maker  Risk reducer  Search cost reducer  Promise, bond, or pact with product maker  Symbolic device  Signal of quality Importance of Brands to Firms       Identification to simplify handling or tracing Legally protecting unique features Signal of quality level Endowing products with unique associations Source of competitive advantage Source of financial returns

A brand is a collection of perceptions in the mind of the consumer. Brand is everything what you want to communicate to consumers and what you communicate. By definition, brand is whatever the consumer thinks of when he or she hears your companys name. A brand is a promise. By identifying and authenticating a product or service it delivers a pledge of satisfaction and quality. Its a bundle of functional and emotional benefits A name with a reputation A mark of pride A simplifier of choice A product or service with an attitude

Simplicity

Imperessive

Distinctive

Essentials of Brand Personalities

Suggestive

Stable Life

Pleasant Association

BUILLDING A STRONG BRAND:-

There are four steps of building a strong brand. These are as follows: 1. Ensure identification of the brand with customers and as association of the brand in customers minds with a specific product class or customer need. 2. Firmly establish the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations with certain properties. 3. Elicit the proper customer responses to this brand identification and brand meaning. 4. Convert brand response to create an intense, active loyalty relationship between customers and the brand

Brand life cycle:Birth of the Brand Growth of the brand Maturity of the Brand Decline of the Brand Death of the Brand

1. Birth of the brand:  The Brand is introduced into the market  Publicity campaigns are launched to promote its functions, features, quality and usage and attract customers to try out or buy the products. 2. Growth of the brand:  The brand begins to build up its following among consumers during this stage.  The cumulative effect of marketing begins to show and the market share expands.  The company must further step up its advertising efforts, and the advertising must highlight the characteristics and value of the brand. 3. Maturity of the brand:  Brands have a considerable market share and have reached their sales peak, with growth beginning to slow down.  Brand influence at this stage is at its height and the kinds of marketing strategies to be adopted are many. 4. Decline of the brand: 3

y y

Brand awareness is high but sales are on the decline. Other characteristics include falling prices, weakening competitiveness and emergence of new products.

 Product Brand Most brands start as a product brand.  Category Brand - defined as having leading market share within a category.  Personality Brand - which establishes a strong brand personality that consumers identify with.  Experience Brand - which goes beyond traditional service and product excellence with a strong sense of uniqueness.  Ingredient Brand - which is actually a co-brand since it co-exists together with others who might be responsible for physically manufacturing products or delivering of the service.  Corporate Brand - After being extremely successful these brands become cash generating trademarks.  Global Brand - expanding geographically to become a global dominant leader.

ELEMENTS OF A BRAND 1. BRAND NAME

Certain factors should be considered before selecting a brand name. They are as follows: y y Distinguish the product from competitive brands Memorable and easy to pronounce 5

y y y y y y y y y y

Easy to say, spell and pronounce It should allude to the products uses, benefits, or special characteristics in a positive way Negative or offensive references should be avoided. Evoke positive mental image Evoke positive emotional reaction Suggest product function or benefits Simple Sound appropriate Be registrable (unique) Possibly, translate well in other languages too.

2. LOGO The company logo is the cornerstone of the firm's branding elements. For many firms the logo is the visual reminder of everything that the firm stands for. While a great logo won't necessarily build the firm, it plays a vital role in representing it. Conversely, a weak or confusing logo can detract from the value that the firm brings.

Elements of a Good Logo: It has a lasting value - trendy logos don't hold up over time. It is distinct - some amount of uniqueness, as long as it doesn't confuse, is valuable. Appeals to your target market - if your target market is partial to blue then it doesn't matter that you're not. Supports your USP - If you are trying to communicate your low low prices then your logo should support that image Legible - This seems pretty obvious but many people use typefaces and images that can't be printed or carried to a large sign. Your logo should clearly identify your company and it can't do that if people don't understand it.

y y y y y

Nike, McDonalds, etc.

3. SLOGANS, JINGLES, CHARACTERS, AND PACKAGING

y

Recognize the benefits of an effective jingle, slogan, character, and package design for a brand.

Use a slogan or jingle that i.e. audible to the ear and one which is catchy

WHY IS BRAND BUILDING DIFFICULT? It is difficult to build a strong brand in today's environment. The brand builder can be inhibited by substantial pressures and barriers, both internal and external. There are 8 different factors that make it difficult to build brands: y y y y y y y y Pressure to compete on price, Proliferation of competitors, Fragmenting markets and media, Complex branding strategies and brand relationships, The temptation to change identity/executions, Organizational, Pressure to invest elsewhere, Pressures for short-term results.

BRANDING - CONCEPTS

While studying brands and branding case studies will come across various terms and concepts relating to brands which most companies use in order to define their strategy for branding their product or service. Some of them are explained as below: y y Brand Width: It is the extension of the brand outside its original product category. Brand Length: It is the brands franchise in terms of age groups, consumer types and international appeal. Brand Depth: It is the brands ability to create consumer loyalty by offering variants in each element in the brand length.

Brand Weight: It is the influence of the brand in its category or market

ROLE OF BRANDS In a world where products, markets, and industry boundaries are in flux, a well-managed brand can be a prime source of strategic direction and competitive advantage. Today branding is such a strong force that anything from salt to lemon juice and water is branded. The following are the roles of branding which serve many purposes: y A brand identifies the seller or maker. A brand protects both the consumer and the producer from competitors who would attempt to provide products that appear to be identical. A brand reduces the primacy of price upon the purchase decision. It accentuates the bases of differentiation.

y y y

y y

y y

A brand is essentially a sellers promise to consistently deliver a specific set of features, benefits and services to the buyers. A brand gives the seller the opportunity to attract a loyal and profitable set of customers. Brand loyalty gives sellers some protection from competition and greater control in planning their marketing programs. Strong brands help build the corporate image, making it easier to launch and gain acceptance by distributors and customers. Managing a positive brand image creates opportunities to introduce new products that build on brand equity. It helps to attract and retain good employees and it improves the stockholders perceived value of your company.

Benefits of global branding

1. 2. 3. 4. 5. 6.

Economies of scale (production and distribution) Lower marketing costs Laying the groundwork for future extensions worldwide Maintaining consistent brand imagery Quicker identification and integration of innovations (discovered worldwide) Preempting international competitors from entering domestic markets or locking you out of other geographic markets 7. Increasing international media reach (especially with the explosion of the Internet) is an enabler 8. Increases in international business and tourism are also enablers

Types of brand names Brand names come Nin many styles. A few include: 1. Acronym: A name made of initials such as UPS or IBM 2. Descriptive: Names that describe a product benefit or function like Whole Foods or Airbus 3. Alliteration and rhyme: Names that are fun to say and stick in the mind like Reese's Pieces or Dunkin' Donuts 4. Evocative: Names that evoke a relevant vivid image like Amazon or Crest 5. Neologisms: Completely made-up words like Wii or Kodak 6. Foreign word: Adoption of a word from another language like Volvo or Samsung 7. Founders' names: Using the names of real people,and founder's name like Hewlett-Packard or Disney 8. Geography: Many brands are named for regions and landmarks like Cisco and Fuji Film 9. Personification: Many brands take their names from myth like Nike or from the minds of ad execs like Betty Crocker

BRAND EQUITY Brand equity is defined in terms of the marketing effects uniquely attributable to the brands -- for example, when certain outcomes result from the marketing of a product or service because of its brand name that would not occur if the same product or service did not have that name David Aaker defines brand equity as A set of assets and liabilities linked to a brands name and symbol that adds to or subtracts from the value provided by a product or service to a firm and/or that firms customers. The major asset categories are: 1. Brand loyalty:
a. Reduced marketing costs b. Trade leverage c. Attracting new customers Create awareness Reassurance

d. Time To Respond To Competitive Threats 2. Brand name awareness:a. b. c. Anchor to which other associations can be attached Familiarity liking Signal of substance/ commitment Brand to be considered Reason to buy Differentiate/ position Price Channel member interest Extensions

d.
a. b. c. d. e.

3. Perceived quality:-

4. Brand associations :a. b. c. d. e. Help process/ Retrieve information Reason to buy Create positive attitudes/feelings Extensions

Brand loyalists have the following mindsets y y y I am committed to this brand. I am willing to pay a higher price for this brand over other brands. I will recommend this brand to others.

BRAND AWARENESS

Awareness refers to the strength of a brands presence in the consumers mind. Awareness is measured according to the different ways in which consumers remember a brand, ranging from recognition to recall to top of the mind.

Brand Pyramid:

TOP OF MIND

BRAND AWARENESS

BRAND RECALL

BRAND IGNORANCE

Factors Affecting Brand Awareness:

Brand Awareness refers to the strength of a brands presence in the consumers mind. Awareness is measured according to the different ways in which consumers remember a brand, ranging from recognition to recall to top of the mind. Some of the major factors affecting brand awareness are: Brand Name: One of the most important factor affecting brand awareness is the brand name. Brand name plays an important part in creating awareness for a brand. Also whether the name is really very meaningful or completely baseless they both affect brand awareness. 10

Bacardi Breezers - flavoured aerated vodka based drink Fevi Stik - adhesive Centre Shock chewing gum. Advertising: Advertising also helps to create Brand awareness in a big way. Take any brand name Fevicol, Vicks, Pepsi all have used ads for creating awareness among their consumers. Celebrity:- Another important factor affecting Brand awareness is the celebrities endorsing the Brand. Whenever you see a celebrity you love endorsing a brand you tend to propagate the Brand.

Coca Cola experienced a tremendous increase in brand following post ad campaigns with Hrithik Roshan and Kaho Na Pyaar Hai. Parent Company:- To a large extent the parent company helps in promoting a brand. The parent company in many cases is so popular that its brand automatically become popular and people become aware about the product.

TATA always promotes it brand with its name along with the brand such as TATA INDICA, TATA INDIGO, TATA SALT. Sales Promotions And Offers: - It also helps in making the consumers aware of the brand. Some of the sales promotion activities that companies carry out help them in a big way to make their target aware of the brand.

Reliance India Mobiles Monsoon Hungama offer, wherein they offered their WLL services at an affordable price. 1st Mover Advantage: - Usually the company that enters a product category first has good awareness about its brand. Usually people tend to remember the first player to enter the market.

Parle products BISLERI in the packaged water segment. Public Relations: - The coverage that the fourth estate and magazines provide a brand also helps in building awareness about a brand.

The popularity of local restaurants such as J.W.Marriot has been boosted by the page 3 mentions in the Bombay Times supplement of The Times of India.

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Direct Selling: - Some of the companies use direct selling as a platform to create brand awareness.

Eureka Forbes water filter AQUA GUARD. Peer Group Opinion: - Peer group opinion also plays an important part in the whole brand awareness exercise. Usually people tend to discuss a lot about the brand and tend to share their experiences or some recent ads they have seen which in turn increases brand awareness of their peers.

When opting for cellular network services (irrespective of prepaid or billing), most people generally go by the opinions of their friends and colleagues. Recall Of Ads: - In some cases the brand awareness is also high due to specific ad recall, which is very high.

Amaron battery advertisement of race between tortoise and rabbit with the tagline LAST LONG REALLY LONG

Brand Recall A brand (Bisleri) is said to have recall if it comes to consumers minds when its product class (mineral water) is mentioned. It indicates stronger brand position in the mind. Still at a higher level is the top of the mind recall; it is the brand, which comes first to the mind. The top of mind awareness indicates a relative superiority a brand enjoys above others. Sometimes a brand becomes so dominant that it becomes the only recalled brand in the product category. Very few brands are able to achieve dominance. The cases may include Johnson & Johnson baby powder, Dettol antiseptic, Colgate and Cadbury.

Brand Name Dominance:

The ultimate awareness level is brand name dominance where in a recall task most customers can only provide the name of a single product. E.g. Band aid from Johnson & Johnson. In order to avoid losing a trademark a firm should begin protecting it early in its life, starting with the selection of the name itself. Sometimes it is helpful and even necessary to create a generic name so that the brand does not become one; the generic name copier helped Xerox protect its brand.

METHODS TO EVALUATE BRAND EQUITY

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Consumer based Cost Price

Historical Cost

Price premium

Brand knowledge

Replacement Cost

Equalisation price

Attribute rating

Market value method

COST-BASED METHODS
Historical Costs:
This is the money that has been spent on the brand till date. Suppose Rs.100 million have bean spent so far creating a brand called X'. The value at which the brand can be sold to another organization should be Rs.100 million. This appeals intuitively though there are several problems in using historical costs. First, a prospective buyer is interested in the future cash flows from a brand and the fact that 100 million was spent on brand 'X' does not guarantee the realization of even a fraction of that amount in future sales. Costs incurred in brands are no measure of the efficiency with which the money was spent. The R& D budgets of GM, Siemens, Philips, Xerox and IBM are much more than their respective Japanese competitors namely Honda, Hitachi, Sony, Canon and NEC. Yet the number of successful models produced by the Japanese far outnumber the ones produced by their western counterparts. Poorly spent finances hardly get translated into brand equity. Historical costs may or may not be an adequate measure of a brand's future potential even when the costs are adjusted to the current prices.

Replacement Costs: Consider 'a brand, say Colgate. How much would it cost to

create a brand with similar turnover, profitability, distribution reach, brand loyalty, etc? This cost is its brand equity.
To begin with, measuring each of the above costs is not very easy. Colgate has a turnover of over Rs.7000 million, a gross profit figure of Rs.150 chores, reaches at least 7 lakh retailers directly (many times this number indirectly) and finally is probably the most popular brand in the country. Promotional expenses on launch alone cost close to 7 Crores today for a national brand. Add to this the production, distribution and marketing overheads. A simple calculation can demonstrate this figure. 13

Consider the example of another brand, Close-Up. Close-Up has been in existence for some time now. Say Rs.200 crores was spent cumulatively on production and marketing over the years to achieve the present turnover. To this, add the amount for the brand loyalty and distribution equity it commands. Let us add another 50 crores to take care of that. In other words, the brand value of Close-up is 255 crores. Replacement cost = (Launch cost + production and administrative costs incurred over the years + brand premium acquired over the years due to brand loyalty, distribution, etc.) First, procedurally this is not very simple. Of course, it is better than historical cost because it considers todays costs. But this suffers again from the same setbacks as the previous method. What is the guarantee that if a brand is created at the cost be Rs.255 crores today it will obtain a market share of about 17% as Close-up did? This indeed is the million dollar question. Present costs (as in replacement cost method) are as bad indicators as past ones (as in historical cost method) as far as evaluating brand equity is concerned.

Brand Contributions: This method tries to identify the value that is added by

the BRAND to the product. Brand contribution compares the profits earned by the brand with the profits earned by an unbranded or generic product in the same category. The difference between the two is treated as a measure of brand value. This, of course, is not acceptable as a price at which the brand can be sold. (The organization will demand several times this value for selling the brand.) This will be useful more as a measure of the brand's strength in the market in which operates. This when multiplied by a suitable integer yields brand equity.
K x (profits from the brand - profits for Brand equity = an unbranded product in tie same category)

PRICE-BASED METHODS
There are some methods, which measure brand equity with the retail price of the brand as the basis. Price Premium Method:

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This is done by comparing the difference between the retail price of the brand and the retail price of an unbranded product in the same category. Here again the difference will give an indication of brand equity. This measure will also give us an indication of Brand strength'' only. That is, higher the retailer premium that a brand can charge, greater is its equity in the minds of the customer. But this is less useful than the profit premium method in understanding brand strength because if we take the toothpaste market, there are brands at different prices. Comparing Colgate Total (the most expensive toothpaste) with an unbranded product will give it high brand equity as compared to Colgate Dental Cream. However, for the common man, Colgate means Colgate Dental Cretin only. How then can we accept higher brand equity for Total as compared to Colgate Dental Cream? Similarly, some toothpastes like Babool are deliberately priced low to penetrate the market. On the basis of the lower retail price premium it commands, it would not be right to say that Babool enjoys less brand equity than what say Promise does. Further, low priced brands like Nirma and Lifebuoy will have their brand equity close to zero if this method were adopted. Such a computation would be unrealistic

CUSTOMER-BASED METHODS
Another approach of measuring brand equity is making the customs knowledge of the brand the focus.

Brand Knowledge Method:

Brand knowledge can be expressed as a sum of brand awareness and brand image. Each of the parameters (i.e. brand recall/strength of brand associations/ attitudes/ user image) can be measured on a 1 to 10 scale. A weighted sum of these parameters will be the measure of brand equity.

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The approach in this method is as follows:

Take a particular brand. List all its attributes. Get ratings for each of these attributes on a 0-.10 scale from consumers. Sum up the scores. This represents the equity of the brand scale. Repeat a similar exercise on competing brands and we have the brand equity for all the brands.

Suppose one gets the following hypothetical scores for 4 talcum powder brands:

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Ponds Freshness Fragrance Long-Lasting Appearance Desirability 8 7 9 8 8 40

Cinthol 7 7 9 7 6 36

Liril 8 7 8 6 7 36

Gokul 6 8 6 5 6 31

If the scores are converted to a scale of 100, the total score for Ponds is 80, Cinthol 12, Liril 72 and Gokul 62. This score represents the Brand Equity. However, brand equity usually is more than what the attributes bestow on the brand. This becomes the limitation of the method. BRAND POSITIONING

A brand position is the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands. Positioning is a concept, which is commonly seen in marketing. Positioning is the act of designing the companys offerings and image to occupy a distinctive place in the target markets mind. The essence of brand positioning is achievement of valued distinction/differentiation in a consumers mind Positioning is not what you do to a product. But what you do to the mind of the prospect. That is, you position the product in the mind of the prospect.

Whether a brand owns a position or not could easily be found by a simple word association or word which immediately springs to mind as and when the brand is thought for when the word is thought of, the brand is recalled immediately.

Some of the well-positioned brands are:

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y y y y y

Raymonds: The Complete Man Fair and lovely: Fairness Woodland: Tough Shoes Dettol: Antiseptic Captain cook: Free Flow Salt

Brand positioning must make sure that:

y y y y y y y

Is it unique/distinctive vs. competitors ? Is it significant and encouraging to the niche market ? Is it appropriate to all major geographic markets and businesses ? Is the proposition validated with unique, appropriate and original products ? Is it sustainable - can it be delivered constantly across all points of contact with the consumer ? Is it helpful for organization to achieve its financial goals ? Is it able to support and boost up the organization

There are various positioning errors, such as1. Under positioning- This is a scenario in which the customers have a blurred and unclear idea of the brand. 2. Over positioning- This is a scenario in which the customers have too limited a awareness of the brand. 3. Confused positioning- This is a scenario in which the customers have a confused opinion of the brand. 4. Double Positioning- This is a scenario in which customers do not accept the claims of a brand.

POSITIONING STRATEGIES

A product can be positioned based on 2 main platforms: The Consumer and The Competitor. When the positioning is on the basis of CONSUMER, the campaigns and messages are always targeted to the consumer himself (the user of the product)

Peter England always campaigns their product concentrating on the consumer, the user of its product.
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Louis Philip also concentrates on this kind of campaigns. The other kind of positioning is on basis of COMPETITION. These campaigns are targeted towards competing with other players in the market. Dettol television commercials always concentrate on advertisements, which show that this product would give you more protection, then the others.
A number of positioning strategies might be employed in developing a promotional program. The 7 such strategies are discussed below:

POSITIONING BY PRODUCT ATTRIBUTES AND BENEFITS

Associating a product with an attribute, a product feature or a consumer feature. Sometimes a product can be positioned in terms of two or more attributes simultaneously. The price/ quality attribute dimension is commonly used for positioning the products.

A common approach is setting the brand apart from competitors on the basis of the specific characteristics or benefits offered. Sometimes a product may be positioned on more than one product benefit. Marketers attempt to identify salient attributes (those that are important to consumers and are the basis for making a purchase decision) y y y y y Consider the example of Ariel that offers a specific benefit of cleaning even the dirtiest of clothes because of the micro cleaning system in the product. Colgate offers benefits of preventing cavity and fresh breath. Promise, Balsaras toothpaste, could break Colgates stronghold by being the first to claim that it contained clove, which differentiated it from the leader. Nirma offered the benefit of low price over Hindustan Levers Surf to become a success. Maruti Suzuki offers benefits of maximum fuel efficiency and safety over its competitors. This strategy helped it to get 60% of the Indian automobile market.

POSITIONING BY PRICE/ QUALITY

Marketers often use price/ quality characteristics to position their brands. One way they do it is with ads that reflect the image of a high-quality brand where cost, while not irrelevant, is considered secondary to the quality benefits derived from using the brand. Premium brands positioned at the high end of the market use this approach to positioning.
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Another way to use price/ quality characteristics for positioning is to focus on the quality or value offered by the brand at a very competitive price. Although price is an important consideration, the product quality must be comparable to, or even better than, competing brands for the positioning strategy to be effective. Parle Bisleri Bada Bisleri, same price ad campaign. POSITIONING BY USE OR APPLICATION Another way is to communicate a specific image or position for a brand is to associate it with a specific use or application. Surf Excel is positioned as stain remover Surf Excel hena! Also, Clinic All Clear Dare to wear Black.

POSITIONING BY PRODUCT CLASS

Often the competition for a particular product comes from outside the product class. For example, airlines know that while they compete with other airlines, trains and buses are also viable alternatives. Manufacturers of music CDs must compete with the cassettes industry. The product is positioned against others that, while not exactly the same, provide the same class of benefits.

POSITIONING BY PRODUCT USER Positioning a product by associating it with a particular user or group of users is yet another approach. Motography Motorola Mobile Ad
In this ad the persona of the user of the product is been positioned.

POSITIONING BY COMPETITOR
Competitors may be as important to positioning strategy as a firms own product or services. In todays market, an effective positioning strategy for a product or brand may focus on specific competitors. This

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approach is similar to positioning by product class, although in this case the competition is within the same product category.

Onida was positioned against the giants in the television industry through this strategy, ONIDA colour TV was launched with the message that all others were clones and only Onida was the leader. neighbours Envy, Owners Pride

POSITIONING BY CULTURAL SYMBOLS

An additional positioning strategy where in the cultural symbols are used to differentiate the brands. Examples would be Humara Bajaj, Tata Tea, Ronald McDonald. Each of these symbols has successfully differentiated the product it represents from competitors.

REPOSITIONING

Repositioning is changing the positioning of a brand. A particular positioning statement may not work with a brand.

Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. De-positioning involves attempting to change the identity of competing products, relative to the identity of your own product, in the collective minds of the target market.

For instance, Dettol toilet soap was positioned as a beauty soap initially. This was not in line with its core values. Dettol, the parent brand (anti-septic liquid) was known for its ability to heal cuts and gashes. The extension's 'beauty' positioning was not in tune with the parents germ-kill positioning. The soap, therefore, had to be repositioned as a germ-kill soap (bath for grimy occasions'') and it fared extremely well after repositioning. Here, the soap had to be repositioned for image mismatch. There are several other reasons for repositioning. Often falling or stagnant sales is responsible for repositioning exercises.

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After examining the repositioning of several brands from the Indian market, the following 9 types of repositioning have been identified. These are:

y y y y y y y y

Increasing relevance to the consumer Increasing occasions for use Making the brand serious Falling sales Bringing in new customers Making the brand contemporary Differentiate from other brands Changed market conditions

TOP REASONS TO REPOSITION A BRAND

Brand repositioning is necessary when one or more of the following conditions exist: y Your brand has a bad, confusing or nonexistent image. y The primary benefit your brand "owns" has evolved from a differentiating benefit to a cost-of-entry benefit. y Your organization is significantly altering its strategic direction. y Your organization is entering new businesses and the current positioning is no longer appropriate. y A new competitor with a superior value proposition enters your industry. y Competition has usurped your brand's position or rendered it ineffectual. y Your organization has acquired a very powerful proprietary advantage that must be worked into the brand positioning. y Corporate culture renewal dictates at least a revision of the brand personality

BRAND REPOSITIONING STRATEGIES

y y Corstjens and Doyle (1989) identified three types of repositioning strategies:

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y (1) Zero repositioning, which is not a repositioning at all since the firm maintains its initial strategy in the face of a changing environment; y (2) Gradual repositioning, where the firm performs incremental, continuous adjustments to its positioning strategy to reflect the evolution of its environment; (3) Radical repositioning that corresponds to a discontinuous shift towards a new target market and/or a new competitive advantage The benefits that can be derived from brand repositioning exercises can be summarized as: y Value over others y Updated personality y Relevant position The risks associated with such strategies are: y Loss of focus y Neglecting original customers y Losing credibility for the brand
y

Confusing the brand

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Branding is supposed to be the process by which the true character and purpose of the company is communicated. And this process is a strategy that is consistently applied through the entire firm, hopefully creating an aura of trust; an appreciation of your uniqueness; and a set of expectations in your customers, shareholders and employees. Everything is consistent--packaging, advertising, public relations Branding creates value beyond what's intrinsic in the product (or service, for that matter.) BRAND LOYALTY

What is Brand Loyalty?

Brand loyalty is a consumers preference to buy a particular brand in a product category. It occurs because consumers perceive that the brand offers the right product features, images or level of quality a the right price. This perception becomes the foundation for a new buying habit. Basically, consumer initially will make a trial purchase of the brand and, after satisfaction, tend to form habits and continue purchasing the same brand because the product is safe and familiar. Brand loyalists have the following mindset: I am committed to this brand. I am willing to pay a higher price for this brand over other brands. I will recommend this brand to others.

Why is Brand Loyalty Important to the Bottom Line?

There are three main reasons why brand loyalty is important:

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 Higher Sales Volume The average United States company loses half of its customers every five years, equating to a 13 percent annual loss of customers. This statistic illustrates the challenges companies face when trying to grow in competitive environments. Achieving even 1percent annual growth requires increasing sales to customers both existing and new, by 14 percent. Reducing customer loss can dramatically improve business growth and brand loyalty, which leads to consistent and even greater sales since the same brand is purchased repeatedly Premium Pricing Ability Studies show that as brand loyalty increases, consumers are less sensitive to price changes. Generally, they are willing to pay more for their preferred brand because they perceive some unique value in the brand that other alternatives do not provide. Additionally, bran loyalists buy less frequently on cents-off deals; these promotions only subsidize planned purchases Retain Rather than Seek Brand loyalists are willing to search for their favorite brand and are less sensitive to competitive promotions. The result is lower costs for advertising, marketing and distribution. Specifi cally, it costs four to six times as much to attract a new customer as it does to retain an old one.

few more points to keep in mind Develop an unbeatable product - if you want to keep customers, make sure they can get what the want from your product. Give customers an incentive to repeat-purchase - chances to win a prize, gifts with a certain number of proofs of purchase, in-pack discount coupons, etc. Stand behind your product if customers dont trust the product, they wont purchase it again. Know your trophy customers and treat them best of all remember the rule that 80 percent of sales will come from the top 20 percent of customers. Make it easier to buy your brand than competing brands availability and simplicity are keys in todays high-speed world. Customers appreciate convenience more than ever. Go to your customers - bring the product to customer when possible. Become a customer service champion seek to serve the customer and they will repeat-purchase again and againfew more points to keep in mind eat-purchase again and again

BRAND PERSONALITY
Brand Personality describes brands in terms of human characteristics. Brand personality is seen as a valuable factor in increasing brand engagement and brand attachment, in much the same way as people relate and bind to other people. Much of the work in the area of brand personality is based on translated theories of human personality and using similar measures of personality attributes and factors.. A brand personality defines how a brand is perceived by consumers, and therefore is extremely valuable to marketers and brand strategists, as it defines/differentiates the brand from all the others

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Why use brand personality? Helps gain an in-depth understanding of consumer perceptions of and attitudes towards the brand Can provide more insight than is gained by asking about attribute perceptions Can differentiate brands especially where brands are similar in product attributes In fact, it can define not only the brand but the product class context and experience Communicates the brand identity with richness and texture If the brand is specified only in terms of attribute associations, very little meaningful guidance is provided Builds long-term brand equity Differentiates the brand and makes it distinct from other competitive offerings Serves as a powerful relationship device

BRAND PERSONALITIES INTO SIX TYPES

1) Ritualistic brands brands associated with particular occasions: for e.g Crackers are associated with Diwali and Archies greeting cards with birthdays and anniversary 2) Symbol Brands:- The logo or the name of the brand is more important than what it contains 3) Heritage brands :- These are the brands that have pioneer advantage. Philips has a strong position in the audio system market because of its reputation 4) Exclusive brands:- These are termed loofor Snobbish brands. BMW 650 cc bikes, Maybach /Rolls Royce are meant for an exclusive clientile in India. Not everyone can buy them. 5) Belonging Brands:- Human Beings are constantly in need of being socially accepted. Brands which make the consumer a part of a larger family are belonging brands. A Levi Strauss jean puts a youth at par with youth in the rest of the world. A Ray-Ban sunglasses means a lot to the user 6) legendary brands :- Brands which have a great deal of history behind them and have achieved demi-god status are legendary brands. Coke, Marlboro, Lifebuoy, Lux. Factors Affecting Brand Personality Gender

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Age Socio-economic class Psychographic Emotional characteristics

There are various ways of creating brand personality. One way is to match the brand personality as closely as possible to that of the consumers or to a personality that they like. The process will be Define the target audience Find out what they need, want and like Build a consumer personality profile Create the product personality to match that profile

Creating Brand Personality In Accordance With the Consumer Self Construct 27

Step 1 -Uncover Internal Potential. Uncover internally what brand personality is viable for the company to create. The brand personality must be authentic, meaning that the personality must be in line with what the company is able to deliver and live up to. Step 2 -Uncover the Social and Individual Level Of Consumer Self. Uncover if the brand personality primarily helps consumers express the individual or social self. Step 3 -Elaborate The Understanding Of How The Brand Personality Interacts With Consumer Self. Uncover if the brand is used to express the individual self, explore if it is the actual, ideal or desired self the brand appeals to. Step 4 - Create and Alter the Brand Personality. Once the right brand personality appealing to the wanted group and type of consumer self has been created the brand must be continuously monitored. Brand personalities evolve and can be altered or diminished with the personality profiles of stereotypical consumers. This clinical process of how the brand evolves in interaction with the personality of different consumer target groups must be closely monitored and adjusted to make the best of the brand.

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Level 1 Uncover Internal Potential

Strategic Brand Personality Analysis

Strategic Brand Personality Analysis

Customer Analysis
Trends Motivation Unmet Needs

Competitor Analysis
Brand image/ identity Strengths, strategies Vulnerabilities

Self Analysis
Existing brand image Brand heritage Strengths/capabilities Organization values

BRAND MANAGEMENT
Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity
A good brand name should: be legally protectable be easy to pronounce be easy to remember
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 be easy to recognize attract attention suggest product benefits (e.g.: Easy-Off) or suggest usage suggest the company or product image distinguish the product's positioning relative to the competition

Managing Existing Products Marketing strategies developed for initial product introduction almost certainly need to be revised as the product settles into the market. While commercialization may be the last step in the new product development process it is just the beginning of managing the product. Adjusting the products marketing strategy is required for many reasons including:
Changing customer tastes Domestic and foreign competitors Economic conditions Technological advances

Brand identity

Brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain
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A brand identity provides direction, purpose and meaning for the brand. It is central to a brands strategic vision and the driver of one of the four principal dimensions of brand equity:

Six Facets of Brand Identity 1. A brand has physical qualities or a physique  What does it do?  What does it look like? 2. A brand has its own personality  Spokesperson or figurehead role  What brand would be if it were a person 3. A brand has its own culture  Set of values feeding the brands inspiration  Country of origin 4. A brand has its own relationship y Exchanges between people and brand y Service sectors and retailers
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5. A brand is a reflection Produces a reflection or image of the buyer or user Different from target the describes brands potential buyer or user Customer is reflected as s/he wishes to be seen from using the brand Consumers use brands to built their own identities 6. A brand speaks to our self image y Self image is the targets own internal mirror y Attitude toward the brand fosters an inner relationship with self

Celebrity endorsement:
celebrity branding is a type of branding, or advertising, in which a celebrity uses his or her status in society to promote a product, service or charity. Celebrity branding can take several different forms, from a celebrity simply appearing in advertisements for a product, service or charity, to a celebrity attending PR events, creating his or her own line of products or services, and/or using his or her name as a brand. The most popular forms of celebrity brand lines are for clothing and fragrances. Many singers, models and film stars now have at least one licensed product or service which bears their name.

IS THERE A NEED FOR CELEBRITY 1. 2. 3. 4. 5. Attract attention More Credible Believable Awareness Add new edge USES OF CELEBRITY ENDORSEMENT Establishes credibility Attracts attention Associative benefits Psychographic connect Demographic connect Mass appeal

1. 2. 3. 4. 5. 6.

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HOW TO SELECT A CELEBRITY Fit with the advertising idea Celebrity Target audience match Celebrity values Costs of acquiring the celebrity Celebrity Product match Celebrity controversy risk Celebrity popularity Celebrity availability Celebrity physical attractiveness Celebrity credibility Celebrity prior endorsements Whether celebrity is a brand user Celebrity profession Celebrity equity membership status IMPACT OF CELEBRITY ENDORSEMENT ON BUYING DECISION Instant Awareness, knowledge about the brand and easy recall. Known products and names are sold more than unknown ones. Values and image of the brand is defined, highlighted and refreshed by the celebrity. The celebrity adds new edge and dimension to the brand. Credibility, trust, association, aspiration and connectivity to brand. More or less every consumer has a brand preference, each buyer would like to consume one of the highly acceptable recognizable, and reputed brands.

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Celebrity endorsements are impelled by virtue

of the following motives:

y y y y y y

Instant Brand Awareness and Recall. Celebrity values define, and refresh the brand image. Celebrities add new dimensions to the brand image. Instant credibility or aspiration PR coverage. Lack of ideas. Convincing clients

Disadvantages of a celebrity endorsing a brand: The celebrity approach has a few serious risks: 1. The reputation of the celebrity may derogate after he/she has endorsed the product: Pepsi Cola's suffered with three tarnished celebrities - Mike Tyson, Madonna, and Michael Jackson. Since the behaviour of the celebrities reflects on the brand, celebrity endorsers may at times become liabilities to the brands they endorse. 2. The vampire effect: This terminology pertains to the issue of a celebrity overshadowing the brand. If there is no congruency between the celebrity and the brand, then the audience will remember the celebrity and not the brand. Examples are the campaigns of Dawn FrenchCable Association and Leonard RossiterCinzano. Both of these campaigns were aborted due to celebrities getting in the way of effective communication. Another example could be the Castrol commercial featuring Rahul Dravid. 3. Inconsistency in the professional popularity of the celebrity: The celebrity may lose his or her popularity due to some lapse in professional performances. For example, when Tendulkar went through a prolonged lean patch recently, the inevitable question that cropped up in corporate circles - is he actually worth it? The 2003 Cricket World Cup also threw up the Shane Warne incident, which caught Pepsi off guard. With the Australian cricketer testing positive for consuming banned substances and his subsequent withdrawal from the event, bang in the middle of the event, PepsiCo - the presenting sponsor of the World Cup 2003 - found itself on an uneasy wicket 4. Multi brand endorsements by the same celebrity would lead to overexposure: The novelty of a celebrity endorsement gets diluted if he does too many advertisements. This may be termed as commoditisation of celebrities, who are willing to endorse anything for big bucks. Example, MRF was among the early sponsors of Tendulkar with its logo emblazoned on his bat. But now Tendulkar endorses a myriad brands and the novelty of the Tendulkar-MRF campaign has scaled down. 5. Celebrities endorsing one brand and using another (competitor): Sainsburys encountered a problem with Catherina Zeta Jones, whom the company used for its recipe advertisements, when she was caught shopping in Tesco. A similar case happened with
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Britney Spears who endorsed one cola brand and was repeatedly caught drinking another brand of cola on tape. 1.6.Mismatch between the celebrity and the image of the brand: Celebrities manifest a certain persona for the audience. It is of paramount importance that there is an egalitarian congruency between the persona of the celebrity and the image of the brand. Each celebrity portrays a broad range of meanings, involving a specific personality and lifestyle. Madonna, for example, is perceived as a tough, intense and modern women associated with the lower middle class. The personality of Pierce Brosnan is best characterized as the perfect gentlemen, whereas Jennifer Aniston has the image of the good girl from next door.

Brand Identity 1 Brand identity develops from the source or the company. Brand message is tied together in terms of brand identity. The general meaning of brand identity is who you really are? Its nature is that it is substance oriented or strategic. Brand identity symbolizes firms reality.

Brand Image Brand image is perceived by the receiver or the consumer. Brand message is untied by the consumer in the form of brand image. The general meaning of brand image is How market perceives you? Its nature is that it is appearance oriented or tactical. Brand image symbolizes perception of consumers Brand image represents others view It is superficial. Image is looking back. Image is passive. It signifies what you have got. It is total consumers perception about the brand.

6 7 8 9 10 11

Brand identity represents your desire. It is enduring. Identity is looking ahead. Identity is active. It signifies where you want to be. It is total promise that a company makes to consumers.

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BRAND EXTENSION
BRAND EXTENSIONBrand extension is a part of brand management to diversify and leveraging the existing brandb y ent er in g i nt o n ew p r o du ct ca t egor y b y n ew p r odu ct d ev el op ment . P os it ive i ma g es a ndstrengths of existing brand / parent brand are leveraged to bring another success story for newproduct. Brand extension is increasingly used by companies as a part of strategy for productdevelopments. It is viewed as one of means to attain integrated brand architecture.

Need for Brand Extension  increasing competition between less & larger players with global aspirations and ability to communicate globally.  towards saturation of markets.  decreasing brand loyalty.  Saves cost  Helps leverage the strengths of the existing brand  It also helps build the brand into a Super brand  Cost of New launches  Promotional Efficiency  Consumer Benefits  Feedback effects  Returns Brand Extension Assumptions Consumers have some awareness of and positive associations about the brand in memory Some of these positive associations are evoked by the brand extension Negative associations are not transferred from the parent brand Negative associations are not created by the brand extension Disadvantages of Extensions Can confuse or frustrate consumers Can encounter retailer resistance Can fail and hurt parent brand image Can succeed but cannibalize sales of parent brand coke, diet coke Can succeed but diminish identification with any one category Canon photocopier, camera, office equipment; Virgin
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 Can succeed but hurt the image of the parent brand Factor affecting brand extension 1. Similarity 2. Reputation 3. Perceived risk 4. Innovativeness Types of brand extension:-

1. Co mpa nio n products :- The idea here is to capitalize on prod uct co mp le me ntarit y. The consu mer ma y view both the products joint ly 2. Product form extension A product launched in a different form usually means line extension, but if a different product form constitutes an entirely different product category.
y

LINE EXTENSION:Line Extension is the simplest form of Brand Extension. The idea is to make some addition to the line and cater to the different segments of users of the product. In Line Extension the key criteria are whether the core strengths of the parent brands can be leveraged for the new items Advantages of Line Extension

 Line Extension helps strengthen brand power and keep the brand live, modern and contemporary.  Changing consumer tastes can be accommodated through Line Extensions  Reduces risk associated with new product introduction  Line extensions provide a convenient route for infusing new values into an ongoing brand and gaining presence in new market Line Extension Risks  Line Confusion - Marketers sometimes add products to their line without sound logic and reasoning, without any clear role and goal. This may confuse the customers and the retailers and will affect the brands owner company in the long run.
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 Encourage Variety seeking Brand loyalty is every marketers dream. By line extension, customers practice and become the habitant of variety seeking. Hence it influence brand switching behaviors. The loyalty is thus weakened.  Success Myopia An idea may be a grand enough to be converted into a full-fledged independent brand. But the lure of extension seems to be so strong that the ideas are brought into the market as line extensions. This implies loss of a winning asset in the long-term.  Strained relations - When the lines expand, marketers tend to pressurize their trade partners such as wholesalers and retailers to carry the complete line in accordance with their wishes. The pressure appears to be applied more intensely at the retail level. The marketers seek adequate shelf space, promotion and information. But at the retailers end, it brings confusion and chaos.

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