How Does Branding Work?
The American Marketing Association defines
a brand 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 those of competitors.”
A brand is thus a product or service whose dimensions differentiate it in some way
from other products or services designed to satisfy the same need.
These differences may be functional, rational, or tangible—related to product
performance of the brand. They may also be more symbolic, emotional, or
intangible— related to what the brand represents or means in a more abstract sense
The role of brands
A brand is a promise between the firm and
the consumer.
Brands’ role for consumers Brands’ role for firms
• Set and fulfill expectations • Simplify product handling
• Reduce risk • Organize inventory & accounting
• Simplify decision making • Offer legal protection
• Take on personal meaning • Create brand loyalty
• Become part of identity • Secure competitive advantage
The Scope of Branding
Although firms provide the impetus to brand creation through marketing
programs and other activities,
ultimately a brand resides in the minds and
hearts of consumers
The Scope of Branding
For branding strategies to be successful and brand
value to be created, consumers must be convinced there are
meaningful differences among brands in the product or
service category.
Brand differences often relate to attributes or benefits of the
product itself.
Gillette, Merck, and 3M have led their product categories for decades, due in part to
continual innovation. Other brands create competitive advantages through
nonproduct-related means. Gucci, Chanel, and Louis Vuitton have become category
leaders by understanding consumer motivations and desires and creating relevant and
appealing images around their stylish products.
Branding is Universal (anything can be branded)
Physical good – Maggi Noodles , LUX soap
Services – Jet Airlines, United Airlines, AB Bank , Qubee etc
Retailers and distributors – Agora, Swopno, Mina Bazar etc
On-line product and services – google, e-bay, etc, Cell Bazar,
People and Organizations – Sakib Al Hassan.
Sports, Arts, and Entertainment – Cowboys?
Geographic Locations – Coxbazar, Kolkata.
Ideas and Causes – Family Planning, Blood Donation
Defining Brand Equity
Brand equity is the added value endowed to products
and services with consumers.
It may be reflected in the way consumers think, feel,
and act with respect to the brand, as well as in the
prices, market share, and profitability it commands.
There are three key ingredients of customer-
based brand equity
1. Brand equity arises from differences in consumer response.
If no differences occur, the brand-name product is essentially a
commodity, and competition will probably be based on price.
2. Differences in response are a result of consumers’ brand
knowledge, all the thoughts, feelings, images, experiences, and beliefs
associated with the brand. Brands must create strong, favorable, and unique
brand associations with customers, as have Toyota (reliability), Hallmark
(caring), and [Link] (convenience and wide selection).
3. Brand equity is reflected in perceptions, preferences, and behavior related to all
aspects of the marketing of a brand. Stronger brands earn greater revenue.
Marketing Advantages of Strong Brands
What is a Brand Promise?
A brand promise is the marketer’s
vision of what the brand must be and do
for consumers.
Brand equity drivers
1. Brand element [Link] Element Brand Element
or identity Choice Criteria
choices
I. Brand names I. Memorable
[Link]
II. Meaningful
[Link]
2. Product & III. Likable
[Link]
accompanying IV. Transferable
[Link]
marketing V. Adaptable
[Link]
3. Other associations VI. Protectable
Brand Brand Name
1.
2.
Coca Cola
Apple
Apple – Think different
Nokia – Connecting
people.
Element 3.
4.
5.
IBM
Microsoft
Intel
Slogans KFC – Finger lickin’
good
FeedEx The World on
6. Samsung Time
7. Toyota Nike – Just Do it
Characters
Logos
URLs
Symbols
11
Building Brand Equity
Brand element choice criteria
Memorable Transferable
Meaningful Adaptable
Likable Protectable
Meaningful
Swatch is a playful name as it combines the words Swiss
and Watch. Its is easy to associate the brand with the
product and anyone who hears about the brand could tell
they are doing watches. The logo is very simple but
distinctive. The Swiss flag represent quality and the know-
how of Swiss watchmaking.
Likable
How aesthetically appealing is the brand element? A recent
trend is for playful names that also offer
a readily available URL, especially for online brands like
Flickr, Instagram, Pinterest, Tumblr, Dropbox, and
others.
Transferable
Can the brand element introduce new products in the same or
different categories? Does it add to brand equity across geographic
boundaries and market segments?
Adaptable— How adaptable and updatable is the brand element?
Logos can easily be updated.
LEVERAGING
“Borrowing” some brand knowledge and depending on
the nature of associations or responses, some brand
equity
Unlike brand elements and communication strategies,
this is an indirect approach to build brand equity.
Leveraging a brand means using the initial brand
platform to move in to other opportunities
Secondary brand knowledge by
linking the Brand to the
following
Example
Suppose
1. Companies Salmon – Alpine, Cross country Ski
bindings, Ski boots and Skis
2. Countries or other New Tennis racquet- “ The Avenger”
geographic areas [Link]: Avenger by Salmon
3. Channel of distribution [Link] of origin : European
Origin
4. Other Brands
[Link]: Upscale Professional
5. Characters tennis shops
6. Spokespersons [Link] co branding :Grip,
7. Events Frame, Strings-
[Link] player to endorse
8. Other third party sources [Link] tennis tournament
[Link] ratings from third parties
Devising a Branding Strategy
When a firm uses an established brand to introduce a new
1. Brand extension product, the product is called a brand extension.
2. Sub-brand
3. Parent brand When marketers combine a new brand with an existing brand,
4. Master/family brand the brand extension can also be called a sub-brand,
5. Line extension such as Hershey Kisses candy, Adobe Acrobat software, Toyota
6. Category extension Camry,automobiles, and American Express Blue cards.
7. Brand line
8. Brand mix The existing brand that gives birth to a brand extension or sub-
9. Branded variants brand is the parent brand.
10. Licensed product
If the parent brand is already associated with multiple products
through brand extensions, it can also be called a master brand
or family brand.
Brand extensions fall into two
general categories:
In a line extension, the
parent brand covers a new
product within a product
category it currently
serves, such as with new
flavors, forms,
colors, ingredients, and
package sizes.
line extension, the parent brand covers a new product within a product
Product Sizes
category it currently serves, such as with new flavors, forms, colors,
ingredients, and package sizes.
Pantene Pantene Pantene Etc.,
Colour
Bisleri White Black Pink
1.1 ltr
Bisleri
.5 ltr
Rasna Rasna Rasa Rose ,
Flavours Orange Mango etc
Bisleri
1.2 ltr
Bisleri
1.5 ltr
Colgate Colgate Colgate
Ingredient gel Herbal Salt etc.,
Bisleri
5 ltr
In a category extension, marketers use the parent brand to enter
a different product category,
Honda has used its company name to cover such different products as
automobiles, motorcycles, snowblowers, lawn mowers, marine engines,
and snowmobiles.
Ponds - Cold cream, Toilet soap Shampoo, Tooth paste, Moisturising
lotion, Talc & Face wash.
LG – Television, Refridgerators, Computer monitors, Microwaves, Air
Conditioners, Washing Machines & Mobile phones.
Park Avenue – Shirts, Shaving cream, Jeans, Belts, Perfumes, Soap
& Razar.
Alternative Branding Strategies
Individual or separate family Corporate umbrella or
brand names. company brand name
Proctor and Gamble TATA
VICKs LG
Ariel and Tide Samsung
Pantene GE
Head & Shoulders Sub-brand name
Rejoice Kellogg’s Rice Krispies,
Pampers Kellogg’s Raisin Bran, and
Kellogg’s Corn Flakes.
Brand Portfolios
The set of all brands and brand lines a particular firm offers for
sale in a particular category or market segment
Flankers Cash cows
Low-end entry level High-end prestige
Flanker or fighter brands are positioned with respect to
competitors’ brands so that more important (and more
profitable) flagship brands can retain their desired
Flankers positioning.
Some brands may be kept around despite dwindling sales
because they manage to maintain their profitability with
Cash cows virtually no marketing support. Companies can effectively
milk these “cash cow” brands by capitalizing on their
reservoir of brand equity.
The role of a relatively low-priced brand in the
portfolio often may be to attract customers to the
Low-end entry level brand franchise. Retailers like to feature these “traffic
builders” because they are able to trade up customers
to a higher-priced brand.
High-end prestige The role of a relatively high-priced brand often is to
add prestige and credibility to the entire portfolio.
What is a flanker brand?
A flanker brand is an extension/addition of another brand name by any company in the same product
line. Some major Companies have adopted this strategy to give various illusions/ concepts to their
customers. For example: Hindustan Unliver Limited has 3 detergent brands namely Surf Excel for
Premium segment customers, RIN for middle segment customers and Wheel for the lower segment
customers. Similarly, Toyota a famous car manufacturer from Japan mainly sells reasonably priced car
and not high-end luxury cars. The common person perceives Toyota as a brand that sells reasonably
affordable cars and offers basic comfort. While entering into the market for luxury cars, knowing the
customers perception of its cars durability and quality, it adopted the strategy of launching a new brand
‘Lexus’. Clearly, a new brand is designed to compete in the category or product line without
damaging the existing brands’ market share by targeting a different group of consumers.
Why is flanker branding important?
The advantages of flanker branding are:
•Attracting new set of the customers that are not served by existing product in the market.
•Protecting the company, in a situation when one of the brands fail, the other brand survives.
•Giving an opportunity to the brand owner of introducing products at a different price, higher/lower
under the flanker brand without affecting the price of the products under the existing brand.
•Using the brand as a defense i.e. to counter attack a competitor who attacks an existing brand with a
unique offering.
Brand Extensions
Introducing a host of new products under a firm’s strongest brand names
Improved odds of new-product success
Positive feedback effects
Risk of brand dilution
May harm parent brand
Firm forgoes creating new brand
