Strategic Brand Management

 The 1980s was turning point- in how

brands began to be viewed.
 Real value - outside the business itself
[Link] minds
 Not production capacity but brands (places
in consumer’s minds) imp.
 Since 1991, buzz word is brand equity.
 26 different ways to measure brand equity
in 1994.
 Price: earnings ratio - 20:25 times
Implications of strategic brand
management
 Brands treated as strategic [Link] that Brand bldg leads to
Business Bldg
 Top management paying close attention to brands . Marketing manager
& not brand managers decide innovation.
 End of dispersion &proliferation – Reducing brand portfolio means fewer
brands encompass more products . e.g. in 1991 Nestle launched 101 new
products worldwide but created only 5 new brands. Umbrella/ source
/master brands.
 Identity prevails over image
 Exploiting brand equity through leveraging. Only one product means
shrinking brand equity
 Brand equity vs price war. New rules of Brand Mgt-seduce customers
through shared values,innovations and experiences
 Addressing diversity of consumers and geographical mkts while managing
consistency
 Consistency vs change
 From transaction to relationships through functional,
emotional ,experiential and aspirational values
 Knowing it takes more than Brand name to build a Brand
What is a product

A product is anything that is offered to a market to satisfy a want or a

need. Products include physical goods, services, experiences, events, persons,
places, properties, organizations, activities,information and ideas .
• CORE BENEFIT
•BASIC PRODUCT - features, benefits, design & style, packaging, labelling,
brand name.
• EXPECTED PRODUCT - creates no preference
• AUGMENTED PRODUCT - total consumption system
• POTENTIAL PRODUCT
The 5 levels constitute customer value hierarchy with each level adding more
customer value.
BRAND

A BRAND IS ESSENTIALLY A SELLER’S PROMISE TO

CONSISTENTLY DELIVER A SPECIFIC SET OF FEATURES,
BENEFITS ,SERVICES AND VALUES TO BUYERS.A BRAND IS
ABOUT INTANGIBLE AND TANGIBLE ASSOCIATIONS
 A BRAND IS MORE THAN A PRODUCT

Organizational
Brand Personality
Associations
PRODUCT
Features
Benefits
Symbols
Country Style
of Origin Design
Brand name

User Package and Brand-Customer

labelling
Imagery Relationships

Self -Expressive Emotional

Functional Benefits
Benefits benefits
Meaning of Brand to a consumer ?

 Identifier
 Differentiator
 Signal of quality
 Promise of consistent delivery of quality
and values
 Symbol of Trust
 Risk reducer .No risk, no brand
 Unique set of benefits & associations
Functions of brand for the consumer
 Function Consumer benefit

 Practicality Savings of time and energy through identical

repurchasing and heuristics in overcrowded
market . Market with many brands and information

 Guarantee Surety of same quality no matter where

or when you buy the product or service.

 Optimisation Surety of decisionmaking of buying best product

/performer due to signal of quality and values

 Characterisation Confirmation of your self-image .

 Continuity Satisfaction brought about through familiarity and
intimacy

 Hedonistic Satisfaction linked to attractiveness of the brand,

logo, its [Link] status symbolness

 Ethical Satisfaction linked to the responsible behaviour of the

brand in its relationship with society (ecology,
employment, citizenship, advertising which doesn’t shock).
BRAND - MEANING

1. ATTRIBUTES
2. BENEFITS
3. VALUES
4. CULTURE
5. PERSONALITY(psychographics)
6. USER (Demographics)

DEEP V/S SHALLOW BRAND

 HOW VALUES AFFECT BRAND CHOICE

Functional Conditional Social

Value value value

BRAND CHOICE

Emotional Epistemic
Value Value
Self expressive ,
Symbolic ,aspirational
Value
What does Branding mean to
BRAND MANAGER ?
 Brands endow products with meaning
 Branding transforms product categories
 Brand is a long – term vision
 Brand is a living memory in consumers mind.
 Brand is a genetic program
Branding is raising new questions
for managers

 Classic strategic models talk about

product portfolios whereas in reality
companies have to manage their
brand portfolios.
 Real brand management begins with
a strategy & a consistent integrated
vision.
 Its central concept is brand identity.
 Underlying the brand is its programme

1. Why must this brand exist?

What would consumers be missing if the brand did not exist?
2. Standpoint.
From where does the brand speak?
3. Vision.
What is the brand’s vision of the future?
4. What are our values?
5. Mission.
What specific mission does the brand want to carry out in its market?
6. Know-how.
What is the brand’s specific know - how?
7. Territory.
Where can the brand legitimately carry out its mission, in which product category?
8. Typical products or actions.
Which products and actions best embody, best exemplify the brand’s values and vision?
9. Style and language.
What are the brand’s stylistic idiosyncrasies?
10. Reflection.
Whom are we addressing? What image do we want to render of the clients themselves?
Challenges facing Brand Builders
 Savvy customers-seek too much
information, comparision, variety and
bargaining power
 Decreasing brand loyalty
 Increased competition ,brand
proliferation and lack of
differentiation
 Media and market fragmentation and
increased expenditure
 Increasing sales promotion
expenditure & reduced advertising
expenditure
 WHY IS IT HARD IT BUILD BRANDS?

1. Pressure to
Compete on
Price
2. Proliferation
8. Short-Term of Competitors
Pressures of sales

7. Pressure to BUILDING 3. Fragmenting

Invest Elsewhere BRANDS Markets & Media

6. Bias Against
Innovation 4. Complex Brand
Strategies &
Relationships

5. Bias Toward
Changing
Strategies
Obstacles to Branding Principles

1) Current corporate accounting- treats any outlay

where payback is uncertain (e.g. advertising)
as an
expense not asset.
2) Annual accounting - brand managers judged on yearly
results.
3) Product based accounting-discourages product
managers from bolstering brand as a whole
4) Even though advertising agency has own network
of partner companies in charge of name research,
packaging, graphic identity, event, communications
(thus IMC), they cannot address strategic issues
like brand portfolio management.
5) Ad agency viewed as outsider
5) High turnover of brand managers
6) Failure to look at brand management as a system
& not piecemeal.
Seven Deadly Sins of Brand
Management
1) Failure to fully understand meaning of brand
2) Failure to live up to brand promise
3) Failure to adequately support the brand
(mktg expenses)
4) Failure to be patient with the brand (kellogs)
5) Failure to adequately control the brand
(proliferation-surf,wrong leverage-ponds)
6) Failure to properly balance consistency &
change
7) Failure to understand complexity of brand
equity measurement & management.
Some Brand Marketing tradeoffs

STRATEGIC FINANCIAL
Retaining customers vs. acquiring customers Short-run vs. long-run objectives
Brand expansion vs. brand fortification Sales-generating vs. brand-building activities
Product performance vs. brand image Accountable or measurable tactics vs. non-measurable
Points of parity vs. points of difference tactics
Quality maximization vs. cost minimization

TACTICAL ORGANIZATIONAL
Push vs. pull Global vs. local
Continuity vs. change Top down vs. bottom up
Classic vs. contemporary image Customization vs. standardization
Independent vs. universal image Internal vs. external
Twenty-First –Century Branding

1. Relying on brand awareness has become marketing fool’s

gold – Smart brands are more concerned with brand relevance and
brand resonance.
2. You have to know it before you can grow it – Most brands
don’t know who they are, where they’ve been, and where they’re
going.
3. Always remember the Spandex rule of brand expansion – Just
because you can doesn’t mean you should.
4. Great brands establish enduring customer relationships –
They have more to do with emotions and trust than with footwear
cushioning or the way a coffee bean is roasted.
5. Everything matters – Even your restroom.
6. All brands need good parents – Unfortunately, most brands
come from troubled homes.
7. Big is no excuse for being bad – Truly great brands use their
superhuman powers for good and place people and principles
before profits.
8. Relevance, simplicity, and humanity – Rather than technology –
will distinguish brands in the future.
 THE RULES OF DIFFERENT PRODUCT
CATEGORIES
1. FUNCTIONAL PRODUCTS - ROUTINE PURCHASES.
DETACHMENT ATTITUDE.
TO SUCCEED
• BRAND THAT PERFORMS WELL(FUNCTIONAL)
• COMPETITIVELY PRICED
• STRONG DISTRIBUTION -as easy substitutability
• AD PRESENCE-Peripheral route,repetition else create
involving situation
• AGGRESSIVE PROMOTIONAL ACTIVITY (mature
market)
THE RULES OF DIFFERENT PRODUCT
CATEGORIES
2. IMPULSE PRODUCTS
TO SUCCEED
• VERY BROAD AVAILABILITY - sales is in direct
response to product display ,don’t be constrained by brick
and mortar stores
• INSTANT PRODUCT IDENTITY - customer has only
split second to decide
• ATTRACTIVE DISPLAYS, PACKAGING
• ADVERTISING PRESENCE-continous
• SLOGAN BASED ADVERTISING
•PROVIDE MORE VARIETY (if variety creates more
impulse)
THE RULES OF DIFFERENT PRODUCT
CATEGORIES
3. CONSPICUOUS CONSUMPTION PRODUCTS
are products that are used to define & demonstrate one’s personality &
lifestyle. (cars, houses, cigarettes, drinks, clothes, interior decoration)

TO SUCCEED,
• A DISTINCT PRODUCT IMAGE -thru packaging, branding, styling,
design & ad.
•IMAGE IS WHAT YOU ARE SELLING, FUNCTIONAL
PERFORMANCE IS SECONDARY.
•MEASURESTHAT INCREASE GENERAL AWARENESS &
EMULATION. -sport sponsorships, celebrity usage & film placement.
•APPROPRIATE DISTRIBUTION & PRICING (NOT CHEAP)
THE RULES OF DIFFERENT PRODUCT
CATEGORIES
4. HIGH TICKET ITEMS- complex or dissonance reducing
LOW ON PEOPLE’S INTEREST LIST.(washing machines,water
purifiers)
TO SUCCEED,
• EXCELLENT COMPANY REPUTATION - TO BE IN
“CONSIDERATION SET”
• DON’T BE EXPENSIVE WITHOUT REASON.
• GOOD SERVICE REPUTATION
• DISTRIBUTION IN KEY OUTLETS.
•COMPARATIVE ADVERTISING
•DEALER TRAINING AND DEALER PAMPHLETS
•WARRANTIES AND GUARANTEES
THE RULES OF DIFFERENT PRODUCT
CATEGORIES
5. SERVICES

TO SUCCEED,
•SALES / SERVICE PERSONNEL – MOTIVATION &
TRAINING
•EVEN
CAPACITY UTILISATION AND YIELD
MANAGEMENT
•IMAGE& VISIBILITY THROUGH RIGHT
ATMOSPHERES & INTANGIBLES LIKE UNIFORM,
STATIONERY.
ROLE OF BRAND MANAGER
WHAT THE BRAND MANAGER’S JOB
ENTAILS

RESPONSIBILITIES IN
•MARKETING DEPARTMENT

•SALES DEPARTMENT

• PRODUCTION DEPARTMENT / MATERIALS

• FINANCE DEPARTMENT

• SENIOR MANAGEMENT
 BRAND MANAGER’S DUTIES

1. DAILY DUTIES - PRODUCT FACT BOOK, MONITORING

SALES ,COMPETITION.

2. SHORT-TERM DUTIES - MONITORING CUSTOMER SATISFACTION,

IMPROVING CUSTOMER VALUE, ANNUAL PLAN, PRODUCT
IMPROVEMENTS ETC.

3. LONG-TERM DUTIES - MARKET OPPORTUNITIES, COMPETITIVE

STRATEGIES
4. MAIN ACTIVITIES- marketing plan,buyin top mgt and sales colleagues ,travel,
action research, action promotional activities,sales analysis

IDEALLY,
DAILY DUTIES - 45 - 55%
SHORT-TERM DUTIES - 20 - 30%

LONG-TERM DUTIES - 15 - 25%

 COMPARISON OF THE ROLES OF THE PRODUCT
MANAGER IN CONSUMER GOODS FIRMS AND
INDUSTRIAL GOODS FIRMS

ACTIVITY CONSUMER GOODS INDUSTRIAL GOODS

COMPANY COMPANY

1. Planning 1)Key duty 1)Key duty

2. Advertising 2)Creates plan 2)Limited role
3. Sales promotion 3)Originates, may manage 3)Suggests technical material
4. Merchandising 4)Recommends policies & plans 4)Limited role

5. Packaging, 5)Makes recommendations 5)Limited role

branding, labelling
6)Bid pricing, estimating, volume
[Link] 6)Studies and makes pricing
7. Product recommendations 7)Works with laboratories and may
development, new 7)Studies and makes approve modifications
products recommendations
8. Product line 8)Recommends changes 8)Recommends and may have
planning
9)Makes requests for studies authority over mix
9. Market research
 COMPARISON OF THE ROLES OF THE PRODUCT
MANAGER IN CONSUMER GOODS FIRMS AND
INDUSTRIAL GOODS FIRMS

ACTIVITY CONSUMER GOODS INDUSTRIAL

COMPANY GOODS
COMPANY

10. Production planning 10)Forecasts sales volume 10)Establishes mix and schedule
11. Inventories and 11)Estimates inventory needs 11)Estimates inventory needs
warehousing
12)Recommends channels of 12)May be primary technical
12. Field sales and distribution advisor to field
distribution
Strategic Brand
management process
 Strategic Brand Management Process

STEPS
Mental maps
Competitive frame of reference
Identify and Establish Points of parity and points of difference
Brand Positioning and Values Core brand values
Brand mantra

Plan and Implement Mixing and matching of brand elements

Brand Marketing Programs Integrating brand marketing activities
Leverage of secondary associations

Plan and Implement Brand value chain

Brand measurement Programs Brand audits
Brand tracking
Brand equity management system

Grow and Sustain Brand -product matrix

Brand Equity Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
Building Customer-Based Brand Equity
BRAND-BUILDING TOOLS AND OBJECTIVES

Choosing Brand Elements

Brand name Memorability

Logo Meaningfulness
Symbol Likability
Character Transferability
Packaging Adaptability
Slogan Protectability

Developing Marketing Programs

Product Tangible and intangible benefits
Price Value perceptions
Distribution channels Integrate “push and pull”
Communications Mix and match options

Leverage of Secondary Associations

Company
Country of origin Awareness
Channel of distribution Meaningfulness
Other brands Transferability
Endorsor
Event
Contd …

CONSUMER KNOWLEDGE EFFECTS BRANDING BENEFITS

Possible Outcomes
Brand Awareness

Depth Recall •
Greater loyalty.
Recognition
• Less vulnerability to competitive
marketing action and crises.
Breadth Purchase • Larger margins.
Consumption • More elastic response to price
decreases.
• More inelastic response to price
increases.

Brand Associations • Greater trade cooperation and

support.
Strong Relevance • Increased marketing
Consistency communication efficiency and
effectiveness.
Favorable Desirable • Possible licensing opportunities.
Deliverable
• More favorable brand extension
evaluations.
Points-of-parity
Unique
Points-of-difference
 Measuring Customer-Based Brand Equity

1. Brand Audit
A. Brand inventory
B. Brand exploratory

2. Brand Value Chain

A. Brand equity sources
B. Brand equity outcomes

3. Brand Equity Management System

A. Brand equity charter
B. Brand equity report
C. Brand equity responsibilities
 Managing Customer-Based Brand Equity

1. Define Brand Hierarchy

A. Principle of simplicity Employ as few levels as possible.

B. Principle of relevance Create abstract associations relevant to as

many products as possible .

C. Principle of differentiation Differentiate individual products and brands.

D. Principle of prominence Adjust prominence to affect perceptions of

product distance.

E. Principle of commodity Link common products through shared

brand elements .

2. Define Brand-Product Matrix

A. Brand extensions Establish new equity and enhance existing
equity

B. Brand portfolio Maximize coverage and minimize overlap

 Managing Customer-Based Brand Equity
Contd of Slide

3. Enhance Brand Equity over Time

A. Brand reinforcement Innovation in product design, manufacturing
and merchandising.

Relevance in user and usage imagery.

B. Brand revitalization “Back to basics” strategy.

“Reinvention” strategy.

4. Establish Brand Equity over Market Segments

A. Identify differences in How they purchase and use products .
consumer behavior What they know and feel about different
brands. .

B. Adjust branding program Choice of brand elements.

Nature of supporting marketing program.
Leverage of secondary associations.
Strategic Brand Analysis
 The objective of strategic brand analysis is to
precipitate & improve strategic decisions about the
brand such as brand identity specification,
product classes with which it should be
associated, role within organization’s brand
system & investment level that should support
it. Another objective is to identify key strategic
uncertainties that will affect brand strategy. It
involves
 a) Customer analysis
b) Competitive analysis
 c) Self – analysis
 Strategic imperative is to allocate resources by
classifying brands into divestment candidates,
milkers, & strategic brands.
 Strategic Brand Analysis

Customer Analysis Competitor Analysis

•Trends
•Motivations •Brand Image/position
•Segments
•Strengths/vulnerabilities
•Unmet needs

STRATEGIC
BRAND ANALYSIS

Self-Analysis
•Existing brand image
•Brand heritage
•Strengths/weaknesses

•The brand’s soul

•Links to other brands
Marketing plan

 Macroenvironment
A. Market analysis-size by volume,
value,penetration,per capita, regional
breakup, growth, seasonality,
competitive breakup, organized vs
unorganized retail (distribution)
breakup,branded vs unbranded
breakup
B. Other factors –Porter’s 5 forces,PESTLE
C. Consumer behavior-theories,secondary
syndicated research
Mktg plan (contd)

 Microenvironment
A. Company-
values,mission,[Link],SWOT
B. Brand –SWOT,equity,STP and Mktg Mix
inconsistencies
C. Customers
D. Mktg intermediaries
E. Competition-identity strategic competitors, qualitative
analysis(objectives,strategies,p,ositioning and mktg mix
effectivenessS/W of company and brand ,reaction
patterns,premises and assumptions that competior is making,
competitor position strategies(leader,follower,challenger),brand
equity, SOMkt-SOMind-SOHeart ,etc
F. Suppliers,community
Mktg plan (contd)

 Based on analysis
A. Issues,problems and opportunities-logic
B. Primary research to validate hypothesis or
throw new light/ideas
C. Objectives (sales goal,mktg goals), strategies-
new segments,repositioning,Ansoff’s
model,tactics(mktg mix elements)
D. Implementation and control
Brand equity
What is Brand Equity

Is set of assets & liabilities

linked to a brand, its name &
symbol, that add to or subtract
from the value provided by a
product or service to a firm and/or
to that firm’s customers.
Brand equity
 Brand equity is the added value endowed to products &
services. It is an important intangible asset that has
psychological & financial value to the firm.

 Customer based brand equity is the differential effect

that past brand knowledge has on consumer response
to the marketing of a brand. Thus power of brand lies in
minds of consumers & what they have
experienced/learned about brand over time.

 A brand is said to have positive customer-based brand equity

when consumers react more favorably to a product and
the way it is marketed when the brand is identified as
compared to when it is not.
 A brand with positive customer based brand equity results in
consumers more accepting of new brand extension, less
sensitive to price increase or withdrawal of advertising support
or more willing to seek brand in new distribution channel,trade
leverage,brand loyalty, competitive advantage .
Brand equity Contd of slide….

There are three key ingredients to this definition. First, brand

equity arises from differences in consumer response. If no
differences occur, then the brand name product can essentially
be classified as a commodity or generic version of the product.
Competition would then be probably be based on price.

Second, these differences in response are a result of consumer’s

knowledge about the brand .Brand knowledge consists of all
the thoughts, feelings, images, experiences, beliefs, and so on
that become associated with the brand. In particular, brands
must create strong, favorable, and unique brand associations
with customers.
Third, the differential response by consumers that makes up
the brand equity is reflected in perceptions, preferences,
and behavior related to all aspects of the marketing of a brand.

Consumer knowledge,feelings and actions is what drives the

differences that manifest themselves in brand equity. The
quality of investment rather than quantity is critical factor.
 Brand equity models
1) Brand Asset Valuator (BAV)– Young and Rubicam (Y&R).
Four key components or pillars
 Differentiation measures the degree to which a brand is seen as different
from others.
 Relevance measures the breadth of a brand’s appeal
 Esteem measures how well the brand is regarded and respected
 Knowledge measures how familiar and intimate consumers are with the
brand.

Differentiation and Relevance combine to determine Brand Strength.

These two pillars point to the brand’s future value, rather than just reflecting
its past. Esteem and Knowledge together create Brand Stature, which is
more of a “report card” on past performance.

New brands low on allpillars. Strong new brands high on D.,low on R and still
lower on E and K.
Leadership brands high on all four pillars .
Declining/eroding brands high on K but lower on E and even lower on R and D
Brand equity models Contd of Slide….

2) Aaker’s Model
a) Brand awareness
b) Perceived quality
c) Brand associations
d) Brand loyalty
e) Other proprietary assets e.g. patents,
trademarks, channel relationships
Brand equity models Contd of Slide….

3) Brandz –Millward Brown and [Link] on Brand

Dynamics pyramid. According to this model,Brand
building involves a sequential series of steps.
 Presence. Do I know about it?
 Relevance. Does it offer me something?
 Performance. Can it deliver?
 Advantage. Does it offer something
better than others?
 Bonding. Nothing else beats it.
 Brand equity models Contd of Slide….

4) Brand resonance Pyramid – Four steps to brand – building

involves 6 brand building blocks. The model emphasises
duality of brands-rational route to brand building (left) and
emotional route(right)
 Brand salience relates to how often and easily the brand is
evoked under various purchase or consumption situations.
 Brand performance relates to how the product or service
meets customers’ functional needs.
 Brand imagery deals with the extrinsic properties of the product
or service, including the ways in which the brand attempts to
meet customers’ psychological or social needs.
 Brand judgments focus on customers’ own personal
opinions and evaluations.
 Brand feelings are customers’ emotional responses and
reactions with respect to the brand.
 Brand resonance refers to the nature of the relationship that
customers have with the brand and the extent to which
customers feel that they are “in sync” with the
[Link] intensity or depth of psychological bond and
activity
 Brand Resonance Pyramid

4. Relationships
Intense
What about you and me?
active loyalty
Resonance

3. Response =
Positive,
What about you?
accessible reactions
Judgments Feelings

[Link] = Strong, favorable &

What are you? Unique brand
Performance Imagery associations

[Link] = Deep, broad

Salience
Who are you? brand awareness
Brand Equity(AAKER’s MODEL)

Note:
 Strong brands are managed not for general
awareness but for strategic awareness
i.e. to be remembered for right reasons &
avoid being remembered for wrong
reasons.
 Perceived quality  customer satisfaction
 ROI (having more impact than market
share, R&D or marketing expenditure)
 Brand loyalty is enhanced through loyalty
programmes, customer clubs & database
marketing.
 1) THE AWARENESS PYRAMID

Top
of Mind

Brand Recall

Brand Recognition

Unaware of Brand

Dominant brand is only brand recalled by high percentage of respondents

 The Value of Brand Awareness

Anchor to Which
Other Associations
Can Be Attached

BRAND Familiarity Liking

Signal of
AWARENESS Substance/Commitment

Brand to Be
considered
 Importance of Brand Awareness
- Brand awareness & familiarity sufficient for
favorable consumer response in low –
involvement products
- Brand awareness plays important role in consumer
decision-making through
learning ,consideration, choice advantage
- Brand recognition vs brand recall : Brand
recognition uses brand as a cue & brand recall
requires consumers to retrieve brand from
memory given product category, needs fulfilled,
purchase/usage situation as cue
- Brand awareness is created by increasing familiarity
of brand through repeated exposure (for brand
recognition) & strong associations (for brand
recall).
 Recognition Versus Recall: Graveyard Model

High
Graveyard
Mass
Brands
n
Recognitio

x
Niche Brand

Low Low Recall High

HOW TO ACHIEVE BRAND
AWARENESS
1) Be different, memorable
2) Involve a slogan or jingle
3) Symbol/logo exposure
4) Publicity
5) Event sponsorship
6) Consider brand extensions
7) Using cues - characters, package
8) Recall requires repetition
9) Recall bonus – Strong TOM results in
brand salience that can inhibit recall of
other brands.
2)Perceived quality
 Perceived quality can be defined as
customer’s perception of overall
quality or superiority of product or
service with respect to its intended,
purpose, relative to alternatives
 Perceived quality is different from:

1) Actual or objective quality

2) Product based quality –nature and
quantity of ingredients, features, services
included.
3) Manufacturing quality – zero defect goal.
 The Value of Perceived Quality

Reason- to-Buy
PERCEIVED Differentiate/Position
QUALITY
A Price Premium
Channel Member Interest
Brand Extensions
Quality Dimensions
Product Quality
[Link]: How well does a washing
machine clean clothes?
[Link]: Does a toothpaste have a
convenient dispenser?
[Link] with specifications: What
is the incidence of defects?
[Link]: Will the lawn mower work
properly each time it is used?
[Link]: How long will the lawn mover
last?
[Link]: Is the service system
efficient, competent, and convenient?
[Link] and finish: Does the product look and
feel like a quality product?
Contd of Slide …
Service Quality
[Link]: Do the physical facilities,
equipment, and appearance of personnel imply
quality?
[Link]: Will the accounting work to
performed dependably and accurately?
[Link](assurance): Does the repair
shop staff have the knowledge and skill to get
the job done right? Do they convey trust and
confidence?
[Link]: Is the sales staff willing to
help customers and provide prompt service?
[Link]: Does the bank provide caring,
individualized attention to its customers?
(A) How to deliver high quality

1) Commitment to quality
2) Quality culture – in organization, in
its norms of behaviours ,symbols &
values.
3) Customer Input
4) Measurement/Goals/Standards
5) Allow Employee Initiative
(B) Signals of High Quality (contd of
Slide)
 Actual quality must be translated into
perceived quality by offering signals/cues.
 Often key dimensions that are visible can be
pivotal in affecting perceptions about more
important dimensions which are difficult to
judge.
 e.g. Stereos – large size means better sound
 Tomato juice – thickness means quality.
 In addition to brand’s product features (intrinsic
cues), other brand associations like
advertising amount, brand name, price
(extrinsic cues) also influence perceived
quality.
 Price acts as a quality cue when other cues are
not available, unknowledgeable customers,
products like wine, perfume etc.
3) Brand Associations

Associations, image & positioning

 A brand association is anything “linked” in memory to a
brand.

 Association has level of strength which depends on many

experiences or exposures to communications & when
supported by network of other links

 A brand image is a set of brand associations organized in

a meaningful way.

 Brand Image or position represent perceptions which may

not reflect objective reality

 Brand image – many, varied, strong, favourable &

unique associations

 Brand Positioning - Brand Manager’s Intention on how

he would like his brand to be viewed by the consumers
which he tries to communicate through marketing mix.
Associative network memory model

 Nodes represent stored

information/concepts & links are
strengths of association.
 Information may be verbal, visual,
abstract, contextual.
 The Value of Brand Associations

Help Process/Retrieve Information

Differentiate/Position
ASSOCIATIONS
Reason-to-Buy

Create Positive Attitudes/Feelings

Basis for Extensions
 Creating Brand image
1) Strength of brand associations – Created through direct
experience (strongest), word of mouth, non-commercial
sources, brand elements, secondary associations,
marketing mix (weakest)
2) Favorability of brand associations – Choosing which
associations to link to brand requires careful analysis of
consumer & competition to determine optimal positioning
for brand.
 Favorability depends on perceived desirability which
in turn depends on relevance, distinctiveness &
believability as perceived by consumers
 The firm should also see whether it can deliver based on its
ability to perform, ability to communicate &
sustainability of the associations.
3) Uniqueness of brand associations – Unique selling
proposition (points of difference) may be product related or
non-product related creates “reason why”.
BRAND ASSOCIATIONS Product attributes
Intangibles

Country/geographic area

Customer benefits

Competitors Brand-name Relative price

and symbol

Product class Use/application

Lifestyle/personality Celebrity/person User/customer

4)The Loyalty Pyramid

Committed
Buyer

Likes the Brand –

Considers it a Friend

Satisfied Buyer
with switching costs

Satisfied/Habitual Buyer
No Reason to Change

Switchers/Price Sensitive
Indifferent-No Brand Loyalty
 The Value of Brand Loyalty
Reduced Marketing Costs
Reduced Marketing Costs

Trade Leverage
Trade Leverage
BRAND LOYALTY
Attracting New Customers:
•Brand Awareness Created
•Reassurance to New
Customers

Time to Respond to
Competitive Threats
 Creating and Maintaining Brand Loyalty

Treat the Customer Right

BRAND
Stay Close to the Customer LOYALTY
Measure/Manage
Customer Satisfaction
Create Switching Costs

Provide Extras
Measuring Brand Loyalty

1) Behaviour Measures
a) Repurchase rates.
b) Percentage of total purchases.
c) Number of brands purchased.
2) Measuring
satisfaction/dissatisfaction
3) Switching costs
a) Investment in a product
b) Risk of change
Measuring Brand Loyalty(contd)

4) Liking of the brand

a)Liking
b)Respect
c)Friendship
d)Trust
e)Willingness to pay premium
5) Commitment
a)Word of Mouth
b)Interaction with product and company
c)Importance to person’s activities & personality.
 The leverages of brand profitability

CORPORATE
RESOURCES

DISTRIBUTION
INVESTMENTS: MKTG INVESTMENTS TO INVESTMENTS
PRODUCTIVITY, R & D FORECAST CHANGES (proximity,availability)
KNOW-HOW, PATENTS OF CONSUMER VALUES AND
AND LIFE STYLES COMMUNICATION
INVESTMENTS

LEVEL OF BRAND RELEVANCE BRAND AWARENESS,

OBJECTIVE QUALITY AND ADAPTATION TO IMAGE, LIKING AND
COST OF QUALITY ITS PRESENT FAMILIARITY and
MARKET AVAILABILTY,
CONVINIENCE
 The leverages of brand profitability Contd of slide …

COMPETITION MARKET
-OTHER BRANDS PERCEIVED VALUE
- INVOLVEMENT
-DISTRIBUTOR VIS-À-VIS COMPETITION
-PRICE SENSITIVITY
OWN BRANDS - BUYING CRITERIA
- HARD DISCOUNT
BRANDS

INCREMENTAL
LEVEL 0F ATTRACTION COST ADVANTAGES
SUSTAINABLE AND LOYALTY DUE TO MARKET
PRICE PREMIUM LEADERSHIP

EXTENDING BRAND EQUITY

BEYOND ITS MARKET
From brand assets to brand equity
Brand
Awareness
+ Image
+ Perceived Quality
+ Evocations
+ Familiarity, Liking
____________________
= Brand Assets Brand added value,
perceived by consumers
minus Costs of branding
minus Costs of invested capital
__________________________
= Brand financial value
(Brand equity)

Brand assets are a non-monetary measurement while brand equity is a monetary one.
 From awareness to financial value

Brand assets Brand strength(mkt outcomes ) Brand value

Brand awareness Market share Net discounted cashflow attributable to

Brand reputation (attributes, Market leadership the brand after paying the cost of
benefits, competence, Market penetration capital invested to produce and run
know-how, etc) Share of requirements the business and the cost of marketing
Brand personality Growth rate
Brand deep values Loyalty rate
Brand imagery Price premium
Brand preference or attac-
hment
Patents and rights

- Brand assets are learnt mental associations & affects.

- Brand strength is a measure of behavioural status.
- Not all of this brand stature is due to brand assets.
- Brand value is Brand’s worth in future.
Brand Identity
The Brand Identity System
 Brand Identity is a unique set of associations that the
brand strategist aspires to create or maintain.
 These associations represent what the brand wants to
stand for (core values, personality traits, relationships, how
brand desires to be perceived) & imply a promise to
customers
 Brand identity should help establish a relationship between
the brand and the customer by generating a value
proposition involving functional, emotional, or self-
expressive benefits.
 Brand identity structure includes a

a)core identity- Soul of a brand, fundamental beliefs & values

of the brand & organization behind the brand. Central,timeless
essence of brand which remains constant as brand travels to
new markets and products
b) extended identity-extended brand identity elements
organized into cohesive and meaningful groups. Includes
elements that provide texture & completeness.
 Brand Identity Traps

Brand Brand
Image Positioning
Trap Trap

BRAND
IDENTITY
TRAPS

Product-
External Attribute
Perspective Fixation Trap
Trap
 Brand Planning Model

STRATEGIC BRAND ANALYSIS

Customer Analysis Competitor Analysis Self-Analysis
Trends Brand image/identity Existing brand image
Motivation Strengths, strategies Brand heritage
Unmet needs Vulnerabilities Strengths/capabilities
Segmentation Organization values

BRAND IDENTITY SYSTEM

BRAND IDENTITY
Extended
Core

Brand as Brand as Brand as Brand as

Product Organization Person Symbol
1. Product 7. Organization 9. Personality 11. Visual
scope attributes (e.g., genuine, imagery
2. Product (e.g., energetic, and
attributes Innovation, rugged) metaphors
3. Quality/ consumer [Link]- 12. Brand
value concern, customer heritage
4. Uses trustworthiness) relationships
5. Users 8. Local vs. (e.g., friend,
6. Country global adviser)
of Origin
 Brand Planning Model (Contd.)

VALUE PROPOSITION CREDIBILITY

Functional Emotional Self-expressive Support other brands
benefits benefits benefits

BRAND – CUSTOMER RELATIONSHIPS

BRAND IDENTITY IMPLEMENTATION SYSTEM

BRAND POSITIONING
-Subset of the brand identity and - To be actively communicated.
value proposition. - Providing competitive
-At a target audience. advantage.

EXECUTION
Generate alternatives Symbols and metaphors Testing

TRACKING
 Organizational Associations:
Organization behind the brand
How Organizational Associations Provide Value

THE ORGANIZATION
Culture/values
People
Programs
Assets/skills
Visibility

ORGANIZATIONAL ASSOCIATIONS
Environmentally sensitive Concern for customers.
Community orientation Presence/success.
Perceived quality Local vs. global.
Innovative

Value Credibility
Proposition Expert Internal Culture
or Customer Trustworthy Internal Culture
Relationship Clarity
Clarity
Liked
Buy-in
Buy-in
Brand Personality
 Brand Personality is set of human
characteristics associated with a given
brand.
 It includes such characteristics as
gender, age, socio-economic class;
lifestyle (activities, interests & opinions)
as well as human personality traits
(such as warmth, concern &
sentimentality) and brand–customer
relationships .
 Brand Personality Creates Brand Equity

BRAND PERSONALITY
HOW IT CREATES BRAND EQUITY

Relationship Functional Benefit

Self-Expression
Basis Model Representation
Model
Model
Brand Personality: Self expression
model
1) Actual self, ideal self, social self,
ideal social self
2) Brand helps to express a personality
therefore,
- feelings engendered by brand personality
- Brand as a “badge”
- Brand becomes part of self (extended
self)
3) Brand personality & self – expression
needs must fit.
Brand Personality: Relationship
Basis model
1) Brand a friend – aspirational or trusted.

2) What if the brand spoke to you –

snobbish/upscale, performance brands talking down, Power
brands flexing their muscles; intimidated brands showing
their inferiority.

3) Brand as a active relationship

partner i.e. brand behavior affects the brand
customer relationship. eg. Constant activity,
involvement/engagement. A relationship of dependency
would be damaged by an out of stock condition.
Brand Personality: The functional
benefit representation model
 The brand personality can also play a more indirect role
by being a vehicle for representing & cueing functional
benefits & brand attributes. Eg mercedes sophistication
=cue
The Brand Personality Scale (BPS): The Big Five

 Sincerity (Bajaj,Tata, Hallmark, Kodak,Colgate,VIP)

-Down-To-Earth: family-oriented,small-town,conventional,
blue-collar, all-Indian
- Honest: sincere, real, ethical, thoughtful, caring
-Wholesome: original, genuine, ageless, classic, old-fashioned
-Cheerful: sentimental, friendly, warm, happy

 Excitement (Axe,Elle18, Centrefresh, Benetton)

-Daring: trendy, exciting, off-beat, flashy, provocative
-Spirited: cool, young, lively, outgoing, adventurous,
-Imaginative: unique, humorous, surprising, artistic, fun
-Up-To-Date: independent, contemporary, innovative,
aggressive
The Brand Personality Scale (BPS): The Big Five
Contd of Slide

 Competence (L&T,Intel, CNN, IBM)

-Reliable: hardworking, secure, efficient, trustworthy, careful
-Intelligent: technical, corporate, serious
- Successful: leader, confident, influential

 Sophistication (Lexus, Mercedes, Revlon)

-Upper Class: glamorous, good-looking, pretentious,
sophisticated
-Charming: feminine, smooth, sexy, gentle

 Ruggedness (Levi’s, Marlboro, Nike)

-Outdoorsy: masculine, Western, active, athletic
-Tough: rugged, strong, no-nonsense.
 How a Brand Personality is
created
Brand Personality Drivers

________________________________________________________________________

PRODUCT-RELATED NON-PRODUCT RELATED

CHARACTERISTICS CHARACTERISTICS

-Product category (Bank) - User imagery (Levi’s 501)

-Package (Gateway computers) - Sponsorships (Swatch)
-Price (Tiffany) -Symbol (Marlboro Country)
-Attributes (Coors Light) - Age (Elle18)
-Ad style (Obsession)
- Country of origin (Audi)
- Company image (The Body-

Shop)
-CEO (Bill Gates of Microsoft)
-Celebrity endorsers (Lux) .
 Brand Behavior and Brand Personality

BRAND BEHAVIOR PERSONALITY TRAITS

Frequent changes in position, Flighty, schizophrenic

product forms, symbols,

advertising, etc.
Frequent deals and coupons Cheap, uncultured
Advertises extensively Outgoing, popular

Strong customer service, easy-to-use Approachable

package, etc.
Continuity of characters, packaging Familiar, comfortable
High price, exclusive distribution, Snobbish, sophisticated
advertises in upscale magazines
Friendly advertising, endorsers Friendly
Association with cultural events, PBS Culturally aware.
 Brand Personality V/s User
imagery
 User imagery is defined as set of human characteristics
associated with typical user of brand.

- In most cases, brands is targeting a specific user profile & that

well developed user profile is primary driver of brand
personality
- For many brands, however, a significant difference between
brand personality & user imagery/personality can be
important to brand strategy.

e.g. Levis brand personality is driven largely by firm’s

heritage of providing clothes for miners & by brand
attribute (tough, durable, simple) & use contexts
(Western/cowboys).
In contrast Levi’s 501 user imagery driven by advertising
– tends to be urban, hip, contemporary, both male & female.
 User imagery can be driven by actual users or by promoting
idealized or stylized users in advertising or other marketing
efforts.
 Kapferer Brand Identity prism

Physique Personality
(Key product & brand (traits, lifestyle)
attributes) I
N
E T
X
E
T
E R
R N
N A
Relationship
A Culture
(relationship L
L (Core values)
of love, I
I friendship,
S respect, awe) S
A A
T
T
I
O I
N Self –image O
Reflection
(Belonging to a N
(of the user club)
profile’s ideal
concept)

PICTURE OF RECIPIENT
The identity prism
1 Physique – brand attributes, benefits, physical
facet (how does it look)
2 Personality – Character, What kind of person if
it were human
3 Culture – means set of values feeding the
brand’s inspiration (corporate; brand culture)
4 Relationship – how brand wishes to relate to
consumers
5 Reflection – user profile (demographic &
psychographic) that consumers would like to be
seen as a result of purchasing the brand.
6 Self – image – While reflection, is the target’s
outward mirror, the self – image is the target’s
own internal mirror ( I feel, I am --------)
Brand Building
 Aaker’s Ten Guidelines for Building Strong
1) Brand identity – brand as product, organization, person,
Brands
symbol.
2) Value proposition – functional, emotional & symbolic
3) Brand positioning – is the identity that is actively
communicated
4) Execution
5) Consistency over-time
6) Brand system – Brands in the portfolio should be
consistent & synergistic
7) Brand leverage – for line extensions & brand extensions
8) Tracking brand equity
9) Brand responsibility
10) Invest in brands – even when financial goals are not met.
Building a strong brand: brand building
blocks/
Brand laddering using brand resonance
pyramid
1) Who are you (brand identity)
2) What are you (brand meaning)
3) What do I think/feel about you (brand response)
4) What kind of association/connection would I like
to have with you (Brand relationships).
 Brand Building
Blocks/brand laddering

4. Relationships
Resonance What about you and
me ?

3. Response
Judgments Feelings What do I think/feel
about you ?

2. Meaning
What are you?
Performance Imagery

1. Identity
Salience Who are you?
Subdimensions of Brand –building Blocks

Resona-
nce
Loyalty
Attachment
Community
Engagement

Judgments Feelings
Warmth
Quality
Fun
Credibility
Excitement
Consideration
Security
Superiority
Social Approval
Self-respect

Performance Imagery
-Primary Characteristics -User Profiles.
and secondary Features .. -Purchase and usage
-Product reliability. situations.
durability, and -Personality and values.
serviceability. -History, heritage,
-Service effectiveness, and experiences .
efficiency, and empathy ..
-Style and Design.
-Price .

Salience

Brand Awareness – Recognition & Recall

Category Identification
Needs Satisfied
Brand Salience

Ahighly salient brand is one that has both

depth & breadth of brand awareness.
 Depthis likelihood that brand element will
come to mind & ease with which it does
so.
 Breadth of brand awareness concerns
range of purchase & usage situations in
which brand elements come to mind.
Brand performance
Attributes & benefits
1) Primary ingredients &
supplementary features
2) Product reliability, durability,
serviceability
3) Service effectiveness, efficiency,
empathy
4) Style & design
5) Price
Brand image

1) User profile
2) Purchase & usage situations
3) Personality & values
4) History, heritage &
experience
Brand judgements
 Brand judgements are opinions &
evaluations:
1) Brand quality
2) Brand credibility
a) Is brand competent, innovative, market leader(brand
expertise)
b) Dependable & keeping customer interests in mind
(brand trustworthiness)
c) Fun, interesting & worth spending time with (brand
likeability)
3) Brand consideration – how personally
relevant consumers find the brand.
4) Brand superiority
Brand feelings

 Brand feelings are customers’

emotional responses & reactions
1) Immediate & experiential –
warmth, fun, excitement
2) Enduring & private – security,
social approval, self-respect.
Brand resonance
 Refersto nature of relationships &
extent to which customers feel in
sync with brand.
 Dimensions

1) Behavioural loyalty
2) Attitudinal attachment
3) Sense of community
4) Active engagement
 Brand building blocks /Brand laddering

INTENSE, ACTIVE
Consumer LOYALTY
Brand
Resonance

POSITIVE,
Consumer ACCESSIBLE
Consumer REACTIONS
Feelings
Judgements

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

DEEP, BROAD
Brand Salience BRAND
AWARENESS
Brand Concept

 Means brand meaning i.e. which is the

different types of consumer needs brand
intends to satisfy/satisfies
 Tangible: Functional/ Rational
 Intangible :
 Emotional
 Experiential-sensory pleasure(sight,
taste, sound, smell or feel).
 Symbolic/aspirational-selfconcept,self-
enhancement, ego identifier, role position
or group membership
Defining & establishing brand
values
 1) Core brand values are the set of
abstract associations (attributes &
benefits) that characterize the 5 to 10
important aspects or dimensions of a
brand.
 Core brand values are identified through
mental maps
 2) Brand mantra is the heart & soul of
brand defined by short 3 to 5 word
phrases that capture essence or spirit of
brand positioning & brand value clearly
delineating what the brand is & what it is
not.
Brand Mantra
Brand function Descriptive modifier Emotional modifier

Disney Entertainment Family Fun

Nike Performance Athletic Authentic

 Brand mantras derive their power &

usefulness from their collective meaning
to employees & consumers.
 The extension of brand management

- Image advertising - Fanzines - Intercommunity events

Aspirational
- Co-branding - Web sites (brand + clients)
- Sponsorship - Virtual communities
fulfillment - Ethical growth
D
e - Advertising - Collector’s or systematic - One-to-one
p - In-store animations additions tied to an event - Recognition and service
t - Built-in experiential (Barbie, Lego etc.) - Co – creation
Experiential h product concepts
- Store tainment
Enhancement o - Street marketing
f
b
r
a - Product quality - Post-purchase promotions - Loyalty programmes
n (cards)
- Product advantage
Functional d
- Trial promotion
satisfaction

Time perspective of the relationship

Short - term transaction Re-purchase Long-term reciprocal
commitment
Brand positioning
BRAND
 POSITIONING-
Brand Positioning is the part of brand identity & value
Implementation
proposition that brand of Brand
manager Identity
decides to actively
communicate to target audience & that demonstrates an
advantage over competing brands .
 Positioning should be clear, competitive, correct for product & target
market, non-generic, believable
 Positioning a brand

What/Why? For whom?

When? Against whom?

 Brand Positioning

Subset of Identity/ Target Audience

Value Proposition Primary
Core Identity Secondary
Points of Leverage
Key benefits

BRAND
POSITIONING

Actively Communicate Create Advantage

Augment the Image Points of Superiority
Reinforce the Image Points of Parity
Diffuse the Image
 Selecting &
Creating brand
Positioning Decision

MBE-David Aaker
Self Analysis
Be Consistent with: Competitors’ Associations
Brand attributes Differentiate
Brand Perceptions

ASSOCIATIONS

Target Market
Provide Reason-to-Buy
Add Value
Identifying & Establishing brand
positioning
 Brand positioning is act of designing the company’s offer &
image so that it occupies, distinct & valued place in target
customers’ minds.
 Requires determining

1) Frame of reference
a) Target market
b) Main competitors

2) Points of parity of brand associations

3) Points of difference in brand associations

 It is important to establish POPs before PODs

 Challenge of positioning is convincing target market about negatively

correlated attributes & benefits e.g. taste v/s low calories.
Points of Parity(POP)

1)Points of Parity(POP)-
a) Category POP - Establishing category membership is very
important or customers can get confused.
Are associations consumers view as essential to be a legitimate &
credible offering within certain product or service category.
Thus, they are necessary but not sufficient condition for brand
choice.
3 ways to convey brand’s category membership is to rely on product
descriptors ,communicate category benefits, comparing to
exemplars(well known brands in a category),.
b) Competitive POP -associations designed to negate
competitors’ POD.
To achieve POP on a particular attribute or benefit, a sufficient number
of consumers must believe that the brand is good enough on that
dimension. There is a zone or range of tolerance or acceptance with
points of parity.
Points of Difference (POD)

2)Points of Difference(POD) – Strong, favorable,

unique associations.

Thus with POD, brand must demonstrate clear superiority .

PODs should have desirability criteria of relevance,

distinctiveness& believability & deliverability criteria of
feasibility, communicability & sustainability.
 How to evaluate and choose a brand positioning
 How strong is the assumed consumer motivation behind
this positioning?
 What size of market is involved by such a positioning?
 Is this positioning credible?
 Is this positioning specific and distinctive?
 Does it capitalize on a competitor’s actual or latent
weakness?
 Is this a sustainable positioning which cannot be imitated
by competitors?
 Does this positioning leave any possibility for an alternative
solution in case of failure?
 What financial means are required by such a positioning?
 Are the product’s current looks and ingredients compatible
with this positioning?
 Does this positioning justify a price premium?
Signaling the positioning
Signaling the positioning

1) The initial choice of brand elements – brand names,

URLs, symbols, logos, characters, spokespeople, slogans,
jingles, packages, and signage.
2) The product and service and all accompanying
marketing mix activities and supporting marketing
programs.
3) Other secondary associations indirectly transferred
to the brand by linking it to some other entity. (e.g., a
person, place, or thing).
Signaling the positioning
Identifying & managing signals
1. Brand elements
2. Product
3. Price
4. Place-Direct v/s indirect channels, brand image/store image
interplay, Push v/s pull strategies,segmentation of retail outlets, co-
operative advertising.
5. Advertising
6. Using promotions to strengthen associations eg. Happy meal or
Nescafe with Shaker
7. Using PR
8. People
9. Pace(Process)
10. Physical evidence(proof of performance )
11. Involving /engaging the customer
12. Events and causes
13. Endorsers
A) Signaling through Brand Elements-
Leveraging Brand elements to build brand
equity

 Brand name
 Symbols
 Slogans
 Jingles
Criteria for choosing brand elements
1) Memorability – easily recognized and
[Link] brand name, also easy to
pronounce.
2) Meaningfulness - descriptive & persuasive
3) Likeability – fun, rich visual & verbal imagery,
aesthetically appealing
4) Transferability – across product categories,
geographic boundaries & cultures
5) Adaptability – flexible, updatable
6) Protectability – legally and competitively
Choosing brand elements Contd of
slide ….
Developing brand name
Name-research procedures include
- Association tests (What images come to
mind?),
- Learning tests (How easily is the name
pronounced?),
- Memory tests (How well is the name
remembered?),
- Preference tests (Which names are
preferred?).
Criteria for Brand Name Selection

A proposed name should:

1. Be easy to learn and remember – it is helpful if it is unusual,
interesting, meaningful, emotional, pronounceable, spellable,
and/or if it involves a visual image.

2. Suggest the product class so that name recall will be high while
still being compatible with potential future uses of the name.

3. Support a symbol or slogan.

4. Suggest desired associations without being boring or trivial.

5. Not suggest undesired associations – it should be authentic,

credible, and comfortable and not raise false expectations.

6. Be distinctive – it should not be confused with competitors’

names.

7. Be available and protectable legally.

Note on brand names
 Non – meaningful names are more transferable

 High – imagery brand names (Frog, Ocean) are

more memorable than low-imagery names (Truth,
History)

 Choosing distinctive names is as important as

choosing simple, easy to pronounce, familiar,
meaningful, easy to remember

 Brand name should be chosen to communicate

performance related & abstract associations.
 Landor’s Brand Name Taxonomy
I. Descriptive
Describes function literally, generally unregisterable
Examples: Singapore Airlines, Global Crossing

II. Suggestive
Suggestive of a benefit or function
Examples: march FIRST, Agilent Technologies

III. Compounds
Combination of two or more, often unexpected,
words
Examples: redhat

IV. Classical
Based on Latin, Greek, or Sanskrit.
Example: Meritor

V. Arbitrary
Real words with no obvious tie-in to company
Example: Apple

VI. Fanciful
Coined words with no obvious meaning
Example: avanade
Symbols

When products & services are difficult to

differentiate, a symbol can be central
element of brand equity.
Symbols can be nearly anything,
including:
 Geometric shapes – Mercedes
 Things/animals – Kingfisher
 Packages – Calcium Sandoz
 Logos – Apple Computer’s apple with a bite out of it
 People – the Maytag repairman
 Scenes – Marlboro country
 Cartoon characters – Ronald Mcdonald,Pillsbury
Slogans
1) Slogan can be tailored to positioning
strategy
2) Can generate equity of its own
3) Can reinforce name or symbol
Slogan is most effective when it is specific,
to the point,
memorable(interesting,relevant, funny,
catchy etc) & linked to the brand.
Styling of branding elements has 4
dimensions:
a) Complexity(minimalism v/s
ornamentalism
b) Representation (realism v/s
abstraction)
c) Perceived movement (dynamic v/s
static)
d) Potency (loud/strong v/s soft/weak).
 B)Signaling thru activation(leveraging marketing
activities to build brand equity)
Brand concept
Target market
Values
Insight

Brand activation at Brand Brand activation Brand activation

retail prototype at contact through media

Brand Brand
lines Lines

Sub –brands Sub - brands

Product insight Product insight
Designing Holistic Marketing Activities

A brand contact can be defined as any

information-bearing experience a
customer or prospect has with the brand,
the product category, or the market that
relates to the marketer’s product or
service. Any of these experiences can be
positive or negative. The company must
put effort into managing these
experiences.
Designing Marketing Programme( Holistic
Marketing Activities )
1)Experiential marketing – sense, feel, think, act,
[Link] want to be entertained, stimulated,
emotionally affected & creatively challenged.
 The idea is not to sell something but to deliver a desirable
customer experience
2)One to one marketing (personalization)– focus
on individual consumer, respond to consumer dialogue via
interactivity & customized products
3)Permission marketing – through some kind of
incentive
4)Relationship marketing – loyalty programs
5) Integration-Intradepartment and interdepartment,IMC
5) Internalization – Internal branding is activities and
processes that help to inform and inspire employees. The
brand promise will not be delivered unless everyone in the
company lives the brand.
Integrating Communication
options
 Means choosing a variety of different communications
options that share common meaning & context but also
offer different complementary advantages.
Marketing Communications
options
1) Media advertising
2) Direct response advertising
3) Online advertising
4) Place advertising- OOH
5) Point of Purchase
6) Trade promotions
7) Consumer promotions
8) Event marketing & sponsorship
9) Publicity & PR
10) Personal selling.
IMC program should satisfy 6 criteria:

Proportion of audience reached by each communication

option
1) Coverage – (Proportion of audience reached
by each communication option. Main effects +
intersection effects of a communication option)
2) Contribution – relates to the inherent ability of
a marketing communication option to create
desired response.
3) Commonality – Consistent & cohesive meaning
of all communication options
4) Complementarity – different associations &
linkage emphasized by different communication
options e.g. advertising (awareness & attitudes)
& sales promotion (action).
5) Versatility – effectiveness for different
customer groups
Integrating Marketing Communications to
Build Brand equity
Information processing model of communications
Steps Pitfalls
1) Exposure media plan failure
2) Attention Boring creatives
3) Comprehension Lack of product category knowledge
4) Yielding Lack of positive attitude due to
irrelevant or unconvincing product
claims.
5) Intention Lack of immediate perceived need
6) Behaviour Failure to remember anything from ad
when confronted with available brands
in store.
Ideal campaign
Steps Ideal ad campaign
Exposure Right consumer should be
exposed to right message at right place
right time
Attention Creative strategy should make consumer
notice ad
Comprehension Ad should reflect consumer’s level of
understanding of product & brand
Yeilding Ad correctly positions on POP & POD
Intention Ad motivates consumers to consider purchase
Behaviour Ad creates strong brand associations
Designing an ad campaign
 Two dimensions
1) Message strategy or positioning of an
ad (What ad says of the brand)
2) Creative strategy (how ad expresses
the brand claims.)
 Factors in Designing Effective Advertising Campaigns

1)Define Positioning to Establish Brand Equity

Competitive frame of reference
Nature of competition
Target market
Point-of-parity attributes or benefits
Necessity
Competitive
Point-of-difference attributes or benefits
Desirable
Deliverable

2)Identify Creative Strategy to Communicate Positioning Concept

Informational (benefit elaboration)
Problem-solution
Demonstration
Product comparison
Testimonial (celebrity or unknown consumer)
Transformational (imagery portrayal)
Typical or aspirational usage situation
Typical or aspirational user of product
Brand personality and values
Motivational (“borrowed interest” techniques)
Humor
Warmth
Sex appeal
Music
Fear
Special effects
Factors creating weak brand links
1) Competitive clutter
2) Ad content & structure
3) Low consumer involvement
 Strategies
to strengthen
communication effect
1) Brand signatures
2) Ad retrieval cues
3) Media interactions
4) Ads over time.
C) Signalling thru secondary associations (Leveraging
Secondary Knowledge to build brand equity)

Involves linking brand to following

1) Companies (e.g. through branding strategies)
2) Countries or geographic areas (e.g. through
identification of product origin)
3) Channels of distribution (e.g. through channel
strategy)
4) Other brands (e.g. through co-branding, ingredient
branding,alliances,extensions)
5) Characters (e.g. through licensing)
6) Spokespersons (e.g. through endorsement,employees)
7) Events and causes (e.g. through sponsorship)
8) Other third-party sources (e.g. through awards or
reviews).
 Secondary Sources of Brand Knowledge

Ingredients Company

Alliances Extensions

Other
Brands Country
Employees of origin

People BRAND Places

Endorsers Things Channels

Third – party
Events Causes endorsements
Brand System
Managing brand systems
- Important because of proliferation of
brands & products within a single
company
- A brand system serves as a launching
platform for new products or brands &
as a foundation for all brands in the
system.
Goals of system is
1) Exploit commonalities.
2) Reduce brand identity damage due to use of brand in different
contexts & roles
3) Achieve clarity of product offerings
4) Facilitate change & adoption
5) Allocate resources.
 Brand system
Brand concept
(value proposition)

Brand name and symbols Product or service

Thus brand systems thinking results in
questions

1) Is separate brand justifiable? Is the

product sufficiently different to merit a
new brand name? Will a new name add
value?
2) Will the business support a new brand
name?
3) Is there confusion/overlap of brands and
products ?
4) Can synergy of brands and products be
created?.
5) Will an existing brand be placed at risk if it
is used on a new product?
BRAND HIERARCHY
 A brand hierarchy is a means of
summarizing the branding strategy by
displaying the number & nature of common
& distinctive brand elements across firms
products.
 Devising a branding strategy
1) Corporate or company brand
2) Family or Range brand or umbrella (branded
house) e.g. Maggie.
3) Individual brand or Product brand. (house of
brands)
4) Modifier – designating item or model
5) Hybrid branding – Co + Indiv, Indiv + Co,

Brand hierarchy may not be symmetric.

 Brand hierarchies

CORPORATE BRAND General Motors Nestle HP

RANGE BRAND Chevrolet Carnation HP Jet Brand

PRODUCT LINE BRAND Chevrolet Carnation LaserJet IV SE

Lumina Instant Breakfast

SUBBRAND Chevrolet Lumina Carnation LaserJet IV SE

Sports Coupe Instant Breakfast
Swiss Chocolate

BRANDED FEATURE/ Mr. Goodwrench NutraSweet Resolution

COMPONENT/SERVICE Service System Enhancement
Guidelines for brand hierarchy
decisions
1) Simplicity
2) Relevance
3) Differentiation
4) Prominence
5) Commonality.
Branding strategies

1) Product Brand strategy – e.g. P & G

2) Line brand strategy – e.g. Surf (only detergents)
3) Range brand strategy e.g. Maggie(all foods)
4) Umbrella brand strategy e.g. Tata.(all products)
5) Source brand strategy – Nestle Kit Kat
6) Endorsing brand strategy – Tractor from house of
Asian Paints
 Decision stems from recognition of the brand’s
role as expected by customer
Devising a Branding Strategy ( Contd)

- Brand extension – line extensions &

category extensions
- Parent brand & sub brand
- Brand line consists of all products –
original as well as line and category
extensions – sold under a particular brand.
- Brand mix (or brand assortment) is the
set of all brand lines that a particular seller
makes available to buyers.
- Licensed brands, co-branding,
ingredient branding.
 Brand Roles
Endorser Strategic
Brands

Driver
Subbrands

BRAND
ROLES
Silver
Bullets

Branded Benefits
•Features
•Components
•Service programs
Strategic Brands and their roles
Brand Roles

 Driverrole is that part of brand name that

drives the purchase decision. Eg. Sensor
Razor technology of Gillette; or in Pillsbury
Microwave Popcorn, Pillsbury is the driver
brand & Microwave Popcorn is only a
generic description.
 Endorser – provides support & credibility
to driver brand’s claims usually the
corporate brand eg. Gillette.
Driver & endorser brands

1) Corporate dominant (driver) brand

name
2) Brand dominant name
3) Endorsed brand – When driver brand
is endorsed by corporate/division/
subsidiary.
4) Dual brands – When two names are
given equal prominence eg. Cadbury’s
Dairy Milk Chocolate.
Subbrand Roles

 A sub brand is a brand that distinguishes a part

of the product line within the brand system. A
sub brand can be driver (General Mills Pop
Secret) or a descriptor brand (Pillsbury
Microwave Popcorn).
Sub brand Roles

1) Describes offers
Descriptor role communicates the product
class, feature, target segment or function of brand
eg. Oral B. Anti-Plaque rinse,Microsoft Office,
Prefix & Suffixes [Link]
2) Structure & Clarify options
Eg. Jet Airways, Jet Lite
3) Augment/ modify the identity by changing
association Surf excel.
4) Exploit market opportunities – Maggie Wheat
Atta Noodles
5) Support Vertical & horizontal extensions
Silver Bullets

A silver bullet is a sub brand or branded

benefit that is employed as a vehicle for
changing or supporting the brand image of
a parent brand.
 Videocon Bazooka,LG Golden eye
Branding (system) strategy
 Reflects the number & nature of common &
distinctive brand elements applied to different
products sold by firm. Thus, it involves deciding
which brand names, logos, symbols etc should be
applied to which products. Branding (System)
strategy is characterized by:
A) Breadth (i.e. in terms of brand-product
relationships &
brand extension strategy)
(B)Depth (i.e. in terms of product –brand
relationships & brand portfolio)- i.e. should firm
have multiple brands in same product category?
 General principle in designing brand portfolio is to
maximize market but to minimize brand overlap.
Designing & Implementing branding
(system) strategies
 The brand – product matrix is a useful tool to characterize the
product & branding strategy of firm. It is a graphical
representation of all brands & products sold by the firm.
Product
1 2 3 4
A

Brand
B

D
Designing & Implementing branding(system)
strategies Contd

- I row of the matrix = a brand line = original brand line

+ brand extensions
- 1column of matrix = Brand portfolio = set of all
brands & brand lines that a particular firm offers in
particular category
- A brand mix (or brand assortment) is set of all
brand lines that a particular seller makes available
to buyers.

A product line is group of products within a product category

that are closely related, therefore they function similar or
are sold to same customer group or are marketed through
same type of outlets or priced in a given range.
 A product line may be composed of different brands or
single family brand or individual brand that has been line
extended
- A product mix (or product assortment) is symbolized by
all columns. Length,Breadth/width, depth of product
mix
Flankers
 Protective flankers or fighter brands are
typically used to create stronger points of
parity with competitors’ brands so that
more important (& more profitable)
flagship brands can retain their desired
positioning e.g. discount brands as flanker
brands.
Possible Special Roles of Brands in the Brand Portfolio

1. To attract a particular market segment not currently

being covered
by other brands of the firm.
2. To serve as a flanker and protect flagship brands.
3. To serve as a cash cow and be milked for profits.
4. To serve as a low-end entry-level product to attract new
customers to the brand franchise.
5. To serve as a high-end prestige product to add prestige and
credibility to the entire brand portfolio.
6. To increase shelf presence and retailer dependence in the
store.
7. To attract consumers seeking variety who may otherwise
have switched to another brand.
8. To increase internal competition within the firm.
9. To yield economies of scale in advertising, sales,
merchandising, and physical distribution.
Corporate Brand Image
Dimensions
 A company brand may evoke image of:
1) Performance or imagery attribute or
benefit associations, product attribute,
type of user, usage situation, overall
judgement
2) People & relationships
3) Values & Programs – e.g. socially
responsible, environmentally concerned
4) Corporate credibility – expertise,
trustworthiness, likeability.
Leveraging the
brand(Brand expansion
strategies)
 Leveraging the Brand

LEVERAGING
THE BRAND

Line Line Extensions(Stretching Brand Co-Branding

the Brand Extensions
Extensions Vertically) in different
(variants) in existing Product Classes
Product Class
In existing
Product Class

Stretching Stretching Ad Hoc Creating a

Down Up Brand Range
Extensions Brand
 Introducing & Naming
New Products & brand extensions

Same Name New Name

Multiple
Same Line extension branding
product
line

New product New

line Brand branding
extension
Line Extensions

Helps to:
1) Expand user base
2) Provide variety
3) Energize a brand
4) Manage true innovation
5) Block or inhibit competitors .
Line stretching Downwards
 Driving forces are increased sensitivity to price, retail low
priced brands, technological change.
 Moving down is easy, protecting brand is hard
 Using sub brands could be the strategy but there is risk of
cannibalization
 Will the identity stretch? – BMW 300, 500,700 series reflect
different sizes & price points. However still have same
identity of ultimate driving machine.
 But Mercedes identity being driven by prestige,exclusivity
had a problem of potential inconsistency.
 Creating a different personality – Parent Child relationship
e.g. John Deere Jr.
 Subtle association e.g. Tractor from house of Asian Paints.
 Line stretching Upwards
 Will the identity stretch
 Upscale entry as vehicle for downstream
enhancement i.e. enhancing core brand
identity through new associations.
 e.g. Lifebuoy to Lifebuoy Gold.
 Brand Extensions
The Good, bad &
ugly

The Good
The Brand Name More Good
Aids the The Extension
Extension Enhances
the Brand Name

EFFECTS OF
EXTENDING
A BRAND
TO A NEW
PRODUCT

More Ugly
New Brand
The Bad name is
The Brand Name foregone
Fails to Help
the extension
The Ugly
The Brand Name
Is Damaged
 Range Brands

BRAND EXTENSION RANGE BRANDS

DECISION FOCUS Incremental Strategic

DECISION SCOPE Product class Product class groupings

TIME FRAME Short term Long term

Advantages of Brand Extension
 Facilitate New Product Acceptance
 Improve brand image
 Reduce risk perceived by customers
 Increase the probability of gaining distribution and trial
 Increase efficiency of promotional expenditures
 Reduce costs of introductory and follow-up marketing programs
 Avoid cost of developing a new brand
 Allow for packaging and labeling efficiencies
 Permit consumer variety–seeking

 Provide Feedback Benefits to the Parent Brand and

Company
 Clarify brand meaning
 Enhance the parent brand image
 Bring new customers into brand franchise and increase market
coverage
 Revitalize the brand
 Permit subsequent extensions
Disadvantages of Brand Extension
 Can confuse or frustrate consumers
 Can encounter retailer resistance
 Can fail and hurt parent brand image
 Can succeed but cannibalize sales of
parent brand
 Can succeed but diminish identification
with any one category
 Can succeed but hurt the image of parent
brand
 Can dilute brand meaning
 Can cause the company to forgo the
chance to develop a new brand.
 Will brand extension succeed?
 Four assumptions must hold true:
1) Consumers have some awareness of & positive
associations about parent brand
2) At least some of these positive associations will be
evoked by the brand extension.
3) Negative associations are not transferred from
parent brand
4) Negative associations are not created by brand
extension
 Ultimate success of extension will depend on its
ability to both achieve some of its own brand
equity in new category as well as contribute to
equity of parent brand.
 Brand extensions must achieve desired POP and
POD. e.g. J&J aspirin for babies failed though J&J is
synonymous with babies. Though safety &
gentleness of aspirin was important, so was
getting fever down quickly J&J failed on POP.
 Steps in Successfully Introducing Brand Extensions

1. Define actual and desired consumer knowledge about the

brand (e.g., create mental map and identify key sources of
equity).
2. Identify possible extension candidates on basis of parent
brand associations and overall similarity or fit of extension to
the parent brand.
3. Evaluate the potential of the extension candidate to create
equity according to the three-factor model:
 Salience(strength) of parent brand associations
 Favorability of inferred extension associations
 Uniqueness of inferred extension associations
4. Evaluate extension candidate feedback effects according to
the four-factor model:
 How compelling the extension evidence is
 How consistent the extension evidence is
 How strong the extension evidence is
5. Consider possible competitive advantages as perceived by
consumers and possible reactions initiated by consumers.
6. Design marketing campaign to launch extension.
7. Evaluate extension success and effects on parent brand
Brand extension guidelines
1) Successful brand extensions occur when there
is perception of fit between parent brand &
extension product
2) Basis of fit: product related attributes &
benefits as well as non – product related
attributes & benefits related to common usage
situations or use types
3) High quality brands stretch farther than
average quality brands
4) A brand seen as prototypical of product
category can be difficult to extend
5) Concrete attribute associations more
difficult to extend than abstract benefit
associations.
Brand Extension fit
Two bases of fit
1) Transferability of skills & assets – e.g.
Toothpaste mouth wash
2) Complementarity – Moser Baer DVD
player & DVDS.
Ask customers:
a) What product classes brand name
can be extended to.
b) Note that brand should not be
extended to trivial product class having
little perceived differentiation
When does brand extension make
sense?
1) Strong brand associations provide
POD
2) When brand name provides only
name recognition & perceived quality
umbrella, often extension will be
vulnerable to competition.
3) Category will not support resources
needed to establish new name or new
name will not provide useful set of
associations.
 Brand extension also has an impact on the
consumer:
- in the trial rate, including a higher rate
(123 vs. 100);
- in the conversion rate (17 per cent vs 13
per cent);
- in the loyalty rate ( index of 161 vs 100 for
new brands).
 Success rate of two alternative branding policies

Market development

Growth Maturity

Launches of new brands 57% 43%

Launches of brand extensions 46% 68%

Attitudes of consumers to brand
extensions
Variables (Explaining25%)
1) Perceived quality of brand does not
guarantee positive opinions of extension
2) Feeling of transferability influences
3) Complementarity does not e.g. pasta
brand extending to tomato sauce is not
assumed
4) Product substitutability does not
guarantee e.g. Specs vs. contacts
5) High perceived quality x transferability;
 High perceived quality x complementarity;
 High perceived quality x substitutability has
positive influence
6) Perceived difficulty of extension is linked
positively only in intermediate levels of
difficulty. It is negative for extensions which
are too easy to manufacture or too difficult.
Attitudes of consumers to brand
extensions
Variables (Explaining25%) Contd of slide
Also
…
1) If brand is mainly functional, extension is
evaluated according to inherent links of perceived
similarity between category of original product &
that of extended product.
2) If brand is symbolic, extension is evaluated based
on its belongingness to the value system
 An extension is acceptable//liked when it fits with
the idea that consumers have of the mother-
brand.
 This feeling is based either on high perceived
similarity to the most typical product/products of
a brand (also called pivot products) or on the
coherence between extension & brand contract
(also called its concept or identity).
 Type of brand and ability to extend

Values

Interest

Know-how

Formula
Degree of
product dissimilarity
Product

(A) (B) (C) (D) (E)

Perimeters of brand extension

No-go area

Threats of brand’s capital asset

Extension zone

Latent potential

Outer core

Spontaneous associations

Inner core

Line
extension
A few classic errors
1) Having a restricted vision of the brand – take them
to be nothing more than descriptive names. Hence brand
extension is limited to few variations of main product.
2) Keeping brand locked up – not leveraging on it
3) Allowing past to determine future – Cadbury would not
have succeeded if it used this theory.
4) Harmful extensions e.g. lower quality segments
5) Opportunism & identity incoherence –Navratna Lal Tel,
Extra Cool & Light all talk of Cool -[Link] Surf
6) Protypical brands – e.g. Coca Cola, Levis, Lacoste should
not try to venture out.
7) The trap of mundane products
Brand reinforcement and revitalisation
strategies
Managing Brands Over Time--Why
Consistency is better?
1) Ownership of position
2) Ownership of identity symbol
3) Cost efficiencies
Resisting Pressures to Change Identities, Positions, and Executions
PRESSURES TO CHANGE IDENTITIES/EXECUTIONS
Brand Manager Mindset Strategic Misconceptions
•Problem solver/action orientation. - Current identity/execution is ineffective.
•High aspirations. - A new paradigm requires a new identity/execution

•Identity/execution owned - A superior identity/execution can be

by predecessor. found.

--Customers are bored with or tired of stodgy

identity/execution.

PRESSURES RESISTED

CONSISTENT BRAND IDENTITY,

POSITIONS AND EXECUTION

BENEFITS OF CONSISTENCY
Own position
Own Identity symbols
Cost efficiencies
Managing brands over-time
Reinforcing brand equity
1) Maintaining Consistency of marketing support –both amount
and kind.
2) Protecting Sources of brand equity Consistency does not
mean uniformity and no changes: Unless there is some change in
the marketing environment, however, there is little need to
deviate from a successful positioning. (change in consumers,
competition or company makes current strategic positioning of
brand less powerful) (e.g. changes that make POP & POD less
desirable or deliverable).
3) Fortifying V/s leveraging (reducing ad expenses, higher price
premiums, brand extensions)
4) Fine-tuning the supporting marketing program- Even brand
tactics should be changed when there is evidence that they are
not contributing to brand equity. Many tactical changes may be
necessary to maintain the strategic thrust and direction of the
brand. May require tactical shifts & changes to maintain strategic
trust & direction of brand & create same desired knowledge
structures in consumer’s minds. e.g. Prices may move up or down,
product features added/dropped brand extensions added,
withdrawn, different, creative strategies or slogans.
In making product changes to a brand, loyal consumers should
feel it is a better product not different. But product should not be
changed if brand meaning is too iconic.
How to preserve the superior image of
brand
1) Upgrade its current level of expectation
2) Integrate new & emerging needs while
holding onto same positioning.
3) Constantly confirm one’s superiority by
extending the line.
4) Adapting to one’s own customers who
themselves change & became more
experienced.
5) Investing in communication.
How to preserve the superior image of
brand Cont of Slide …

6) Creating entry barriers – cost of

production; mastering technology,
quality; domination through image &
communication; line/range
extensions, opinion leadership;
controlling distribution, legality.
7) From brand equity to customer
equity through customer dialogue,
relationship marketing, segmenting
customers.
8) Sustaining proximity with
influencers
9) Necessity of dual management
(glocal,relevance to different
segments etc)
Brand Revitalization

Changes in consumer tastes and preferences, the

emergence of new competitors or new technology, or any
new development in the marketing environment.

Decisions must then be made as to whether to retain the

same positioning or create a new positioning, and, if so,
which positioning to adopt. Sometimes the positioning is
still appropriate, it’s the actual marketing program that is
the source of the problem.
Brand Crises-Swift and sincere
Revitalising brands
 When prominent & admired brands have fallen on
hard times
a) Are key brand associations still positive & can function as
POP & POD
b) Should we retain same positioning or adopt new one.
1) Expanding brand awareness. Because, depth is rarely a
problem for fading brands. It is breadth that is problem.
Brand is thought of in very narrow ways. E.g. Burnol, Vicks.
Strategy is to look at market penetration (increase quantity
per usage, frequency of use, new usage opportunities,
faster replacement, completely different ways to use
brand).
2) Improving brand image – Through improving strength,
favourability & uniqueness of brand associations
a) Repositioning the brand
b) Changing brand elements
c) Changing marketing mix
d) Entering new markets
 2. Finding Revitalizing the Brand
New Uses
3. Entering
New markets

1.
Increasing 4. Repositioning
Usage the brand

BRAND
REVITALIZATION

7. Extending Augmenting the

the Brand Product/Service
6. Obsoleting
Existing Products
 Alternatives to revitalization
1) Milking option(Harvesting)
2) Exit/Divestment/Liquidation.
Milking strategy should be used

When:

1) Industry decline rate not steep.

Pockets of enduring demand exist
2) Price structure stable & profits
possible
3) Loyal Customer base
4) Brand provides economies of scale to
company.
 Search for fountain of youth :
How to Contemporize a brand identity
 Problem is acute for heritage brands.
Though considered sincere, they appear
stodgy, old-fashioned & tired.
 Strategies are:

1) Evolve an identity through

a) Symbols – eg. Pillsbury doughboy has got
livelier
b) Name – Kentucky fried chicken becomes
KFC
c) Slogans.
d) New product features (new,Improved)
Search for fountain of youth :
How to Contemporize a brand identity
Contd of Slide
2) Augment the identity
a) Product extension
b) Adding an emotional benefit
c) Use of sub brands
d) Adding user imagery.
Repositoning
Updating positioning over time

 Involves two main issues:

1) Laddering – how to deepen meaning of
brand from attributes to benefits,
consequences to abstract values
(personal goals, motivations)
 Reacting to competitive challenges.
Repositioning

 Why Change identities, positions,

executions?
 Rationale
1)IPE was poorly conceived.
2)IPE is obsolete – Customer needs
have changed eg fried is considered
unhealthy.
3)IPE appeals to a limited market -
Customer Segment dying /stagnant
4)IPE is not contemporary
5)IPE is undifferentiated from
competition
Adjustments to brand portfolio
1) Migration strategies are designed so that
consumers understand how various brands in
portfolio can satisfy their needs as they
(consumers) or the brands/products change over
time
e.g. Entry-level brands to higher versions
2) Acquiring new customers Challenge lies in
making brand relevant to vastly different cohort
groups especially when brand has strong
personality or user image associations.
 Strategy could be multiple marketing
communications program, brand extensions & sub
brands; new distribution outlets.
3) Retiring brands – retrenching a fading brand.
Challenge of growth in mature markets: Segments of
Consumers

Typical segments range from hell to paradise with a

mix of behavioural and emotional dimensions:
1. Those consumers who dislike the brand, even hate
it. It is really not part of their world.
2. Those who are not consumers because they
consider the brand is underperforming on a
sought attribute.
3. Those who simply are not consumers, without a
specific reason (simply the brand has nothing
salient to their eyes to induce trial).
4. Those who would like to buy but cannot (no
availability, no accessibility, price problem).
Challenge of growth in mature markets:
Segments of consumers Contd of slide …

5. Those who buy from time to time,

switching between brands.
6. Those who buy more often.
7. Those buyers who are involved,
engaged with the brand.
As soon as the brand is launched
everything must be done to create and
identify consumers in segments 6 and 7,
the heavy buyers and the involved
consumers.
Challenge of growth in mature markets

1) Growth through existing customers

- CRM & research
- Building volume per capita by addressing barriers to
consumption (e.g.. unhealthy drink)
- Growth through new uses & situations
- Growth through trading up
2) Line extensions – necessity & limits.
Challenge of growth in mature
markets Contd of slide …
3) Growth through innovations – Creating desire through
innovation of value.
4) Managing fragmented markets through
right amount of segmentation & customization.
5) Growth through cross selling
6) Growth through internalisation.
 Brand capital and customer capital: matching preferences and purchase behaviour

BRAND CAPITAL
Perceived superiority
YES NO

19% 35%

YES

SONY
CUSTOMER
CAPITAL
Usage

4% 42%

NO
Brand capital and customer capital: matching preferences
and purchase behaviour

Thus sustaining a brand long term means:

1) Nourish the perceived difference
2) Invest in communication
3) Remain within mainstream price
4) Dominate to invest
5) Control the distribution system
6) Create entry barriers
7) Reinforce brand loyalty
Handling name changes & brand transfers
Types of brand transfers

1) Name
2) Visual identity – colour, packaging,
logo, symbol, slogans
3) Physical product
4) Audio identity
5) Brand character
6) Consumer benefit or brand
positioning.
Managing brands over
boundaries
Managing brands over geographic
boundaries & market segments

 Rationale of going international

1) Slow growth & increased
competition in domestic markets
2) Growth & profit opportunities
overseas
3) Desire to reduce costs from
economies of scale
4) Need to diversify risk
5) Recognition of global mobility of
customers.
Advantages of Global Marketing
Programs(consistency over boundaries)

 Economies of scale in production and

distribution
 Lower marketing costs
 Power and scope
 Consistency in brand image
 Ability to leverage good ideas quickly and
efficiently
 Uniformity of marketing practices.
Disadvantages of Global Marketing
Programs
 Differences in consumer needs, wants, and
usage patterns for products
 Differences in consumer response to
marketing mix elements
 Differences in brand and product
development and the competitive
environment
 Differences in the legal environment
 Differences in marketing institutions
 Differences in administrative procedures.
Standardization versus
customization in global strategies
1) Standardization in strict sense
difficult
2) Standardization & Customization.
Blend global objectives with
local/regional concerns.
Global Brand Strategy

1) Identify differences in consumer

behaviour in each market (for e.g. how
consumers purchase, use products &
what they know & feel about brands).
2) Adjust the branding program (i.e.
through choice of brand elements;
nature of supporting marketing program
& leverage of secondary associations).
Note that secondary associations e.g.
country of origin may have more
leverage in new market than in domestic
market.
The Ten Commandments of Global
Branding
1. Understand similarities and differences in the
global branding landscape.
2. Don’t take shortcuts in brand building.
3. Establish marketing infrastructure.
4. Embrace integrated marketing
communications.
5. Cultivate brand partnerships.
6. Balance standardization and customization.
7. Balance global and local control.
8. Establish operable guidelines.
9. Implement a global brand equity
measurement system.
10. Leverage brand elements.
 Making brands go global
How country of origin impacts globalization tendencies

Subsidiary free Push towards No response

to decide (%) standardization (%) (%)

Germany 4.5 95.5 -

Great Britain 5.3 94.7 -

Japan 0.0 85.7 14.3

Switzerland 20.0 80.0 -

USA 5.7 77.2 17.1

France 24.0 69.0 7.0

Italy 30.0 60.0 10.0

Mean 12.9 81.0 6.1

 Which products lead to marketing standardization?
Same marketing Same marketing mix Marketing mix
mix in Europe within regions adapted per country
(%) (%) (%)

Luxury goods 64 28 8

Cosmetics 61 30.3 8.7

Hi-fi/TV/video 54.2 20.8 25

White goods 54.2 37.5 12.5

Detergents 53.8 30.8 15.4

Beverages 40 30 30

Textiles 39.1 39.1 21.8

Cars 35 35 30

Services 28.6 21.4 50

Business to – 25 16.7 58.3

Business

Food 23.5 50 26.5

Mean 40 34 26
What differences between countries would compel you to adapt the marketing mix of the brand?
Type of difference Necessary adaptation (%)
Legal differences 55

Competition 47

Consumption habits 41

Distribution structure 39

Brand awareness 38

Brand distribution level 37

Media audience 37

Marketing program success 34

Consumers’ needs 33

Media availability 32

Brand images 30.5

Norms for products manufacturing 27.5

Brand history 25.2

Lifestyle differences 25

Cultural differences 25

Subsidiary sales 23

Consumers’ buying power 22

Consumers’ age differences 12
 Which facets of the brand mix are most often globalised?
___________________________________________________________________

%
Logotype, trademark 93

Brand name 81

Product features 67

Packaging 53

After-sales service 48

Distribution channels 46

Sponsoring (arts) 32

Sponsoring (sports) 29

Advertising positioning 29

Advertising execution 25

Relative pricing 24

Direct marketing 18

Sales promotion 10
Brand Measurement
Measuring Brand Equity

There are two basic approaches to measuring brand equity.

An indirect approach assesses potential sources of brand
equity by identifying and tracking consumer brand
knowledge structures. A direct approach assesses the
actual impact of brand knowledge on consumer response to
different aspects of the marketing.

The two general approaches are complementary, and

marketers can employ both. In other words, for brand
equity to perform a useful strategic function and guide
marketing decisions, it is important for marketers to (1)
fully understand the sources of brand equity and how they
affect outcomes of interest, as well as (2) how these
sources and outcomes change, if at all, over time.

Brand audits are important for the former; brand tracking is

important for the latter.
Brand audits
A brand audit is a consumer-focused exercise that
involves a series of procedures to assess the health of the
brand, uncover its sources of brand equity, and suggest
ways to improve and leverage its equity. Brand audits
consist of two steps: the brand inventory and the brand
exploratory.

BRAND INVENTORY. The purpose of the brand inventory

is to provide a current, comprehensive profile of how all the
products and services sold by a company are marketed and
branded. Profiling each product or service requires
identifying all associated brand elements as well as the
supporting marketing program. It is also advisable to profile
competitive brands.

The brand inventory helps to suggest what consumers’

current perceptions may be based on.
Brand audits Contd of slide ….

BRAND EXPLORATORY. The brand exploratory

is research activity conducted to understand what
consumers think and feel about the brand and its
corresponding product category to identify
sources of brand equity.

The brand exploratory often employs qualitative

research techniques, such as word associations,
projective techniques visualization, brand
personification, and laddering, ethnography and
focus groups.
Brand Tracking

Tracking studies collect information from

consumers on a routine basis over time. Tracking
studies typically employ qualitative measures to
provide marketers with current information as to
how their brands and marketing programs are
performing on the basis of a number of key
dimensions. Tracking studies are a means of
understanding where, how much, and in what
ways brand value is being created.
The Measurement of Brand
Associations
What does the brand mean to you?
1) Indirect Qualitative Approaches:- Better
as respondents unwilling (as they feel
information is embarrassing, private),
unable (consumers don’t know real
reason)
In Projective techniques, goal is disguised
“Instead of focusing on brand, discussion
centers around use experience, decision
process, brand user, off- the- wall
perspective such as considering the brand
to be a person or animal. Also ambiguous
stimuli are used so there is freedom to
project experiences, attitudes &
perceptions.
 Determining Brand Meanings
Personal
Values
Free
Driving
Association
Choice Picture
Interpretation

How Brands
Are
The Brand
Perceived
as a
Differently
Person

UNDERSTANDING
BRAND
ASSOCIATIONS
INDIRECT METHODS

The Brand
as an Animal,
Describing the
Magazine,
Brand User
etc.

Dissecting In-Depth
the Decision Look at the
Process Use Experience
Contd of slide …
 Free association 
a) Word association with brand names,
slogans
b) Sentence completion
 Check strength of association
Measuring associations by scaling brand perceptions

Scaling approaches are more objective & reliable

It involves:
1) Representative sample of customers/identifying target
segment
2) Determining perceptual dimensions – both
attributes/benefits & user profile/use situations
Specifying competitive set – close competitors, competitors
considered, competitors in usage.
3) Determining important perceptual dimensions that
discriminate or are better predictors of purchase. (Conjoint
analysis)
4) Profiling brand associations vis-à-vis competition & vis-à-vis
ideal (desired Brand positioning).
BUYING POWER INDEX
(SEE APPENDIX NO.1)
ADVERTISING, MEDIA & SALES PROMOTION
 GOOD ADVERTISEMENT (Creative brief)

HAS FOUR PARTS-

1. CENTRAL PROMISE
2. FACTS TO SUPPORT
3. CUSTOMER ADDRESSED
4. TONE & ATMOSPHERE
 RECOGNISING GOOD ADVERTISING

1. STRATEGIC FIT WITH POSITIONING

2. DISTINCTIVE / EXCLUSIVE
3. COMPETITIVE
4. NON-GENERIC
5. PROVOCATIVE
6. CONTENT MORE IMPORTANT THAN STYLE
7. BOING FACTOR
8. BELIEVABLE LOGIC
9. VISUAL / VERBAL COHERENCE
10. CONSUMER EMPATHY
 FACTS TO SUPPORT

1. PRODUCT ITSELF - INGREDIANTS - REAL OR PERCEIVED

2. PEOPLE WHO MAKE IT
3. PACKAGING
4. WAY IT IS SOLD
5. ACTUAL CONSUMER REPORTS
6. PEOPLE WHO BUY IT
7. REGION
8. OPINION OF INDEPENDENT JUDGES
MEDIA BRIEF

• TARGET AUDIENCE
• ADVERTISING MESSAGE
• REACH V/S FREQUENCY
• MEDIA HABITS OF TARGET AUDIENCE
• TIMING OF CAMPAIGN
• REGIONAL WEIGHTS
• SHARE OF VOICE DESIRED IN EACH MARKET
•CREATIVE REQUIREMENTS - MINIMUM SIZE OR
LENGTH OF TIME
 JUDGING MEDIA PLANS

1. AGREED TARGET AUDIENCE

2. AGREED ADVERTISING MESSAGE
3. MEDIA DECISIONS
 AGREED TARGET AUDIENCE

QUESTIONS TO ASK
1. CAPTIVE SALES OR CONQUEST SALES
2. DEMOGRAPHIC CHARACTERISTICS
3. REGIONAL CHARACTERISTICS
4. PSYCHOLOGICAL CHARACTERISTICS
 MEDIA DECISIONS

1. REACH V/S FREQUENCY V/S IMPACT

2. MEDIA TYPES
3. SPECIFIC MEDIA VEHICLES
4. OPTIMAL FORMAT
5. MEDIA TIMING MACROSCHEDULING
MICROSCHEDULING
6. GEOGRAPHICAL MEDIA ALLOCATION
 REACH V/S FREQUENCY

REACH FREQUENCY
• BROAD UNDEFINED AUDIENCE • FORGETFUL AUDIENCE
• RAPIDLY EXPANDING MARKET • COMPLEX MESSAGE
• NEW PRODUCT • HIGHLY SEASONAL
• ANNOUNCEMENTS •RAPID CONSUMER USE-
• LOW CONSUMER USE-UP RATE UP RATE (FREQUENT
(INFREQUENTLY PURCHASE PURCHASE CYCLE)
PRODUCT) •STRONG LOYALTY TO
•STRONG CONSUMER LOYALTY COMPETITIVE BRAND
TO OUR BRAND • IMPULSE
• STRONG COMPETITORS
MEDIA TYPES DEPENDS ON

• MEDIA HABITS OF TARGET AUDIENCE

• BUDGETARY CONSTRAINTS
• PRODUCT CHARACTERISTICS
• TACTICAL FACTORS - COMPETITORS, TRADE
• INHERENT CHARACTERISTICS OF MEDIA
• MESSAGE
SPECIFIC MEDIA VEHICLES

•CIRCULATION, AUDIENCE (READERSHIP), EFFECTIVE

AUDIENCE, EFFECTIVE AD-EXPOSED AUDIENCE
• COST PER THOUSAND CRITERION
•ADJUSTMENT FOR AUDIENCE QUALITY &
AUDIENCE ATTENTION-PROBABILITY, EDITORIAL
QUALITY
• TRPs & QRPs
 CONTINUITY V/S BURSTS

CONTINUITY BURSTS

• FREQUENT PURCHASE PATTERN •INFREQUENT PURCHASE

PATTERN
• HIGH LEVEL OF IMPULSE BUYING
•STRONG LOYALTY TO
• EXPANDING MARKET BRAND
• NO BUDGET CONSTRAINTS • HEAVY LAUNCH WEIGHT
• BUDGET LIMITATIONS
TIMING DEPENDS ON

• BUYER TURNOVER
• PURCHASE FREQUENCY
• FORGETTING RATE
ADVERTISING PATTERNS

• CONTINUITY
• CONCENTRATION
• FLIGHTING
• PULSING
 HOW TO USE PROMOTIONS
EFFECTIVELY

1. OBJECTIVE - CONSUMERS, TRADE, SALESFORCE

2. UNDERSTAND WHAT EACH TYPE OF SALES PROMOTION
TOOL CAN OR CANNOT DO.
3. WHAT LENGTH OF TIME
4. COST EFFECTIVENESS
5. TEST
6. LOOK FOR CREATIVE EDGE
7. USE PROMOTIONS TO STRENGTHEN ADVERTISING
POSITIONING
FCB Planning Model
Thinking Feeling
High 1. Informative 2. Affective (feeler)
Involvement (thinker) Jewelry, cosmetics,
Car, house, motorcycles
furnishings,
products

Low 3. Habit Formation 4. Self satisfaction

Involvement (doer) (reactor)
Food, household Cigarettes, liquor,
items candy
GROWTH STRATEGIES

INTENSIVE GROWTH – (Ansoff’s Product / Market Expansion Grid )

INTEGRATIVE GROWTH – Backward, Forward, Horizontal

DIVERSIFICATION GROWTH – Concentric (Same technology /

Marketing synergy), Horizontal (Appeals to current customers), Conglomerate
(No relationship to the company’s current technology, products, or markets).
Forecasting & Demand Measurement
25
1

 Demand can be measured at 6 product levels (item, form,

line, company sales, industry sales, all sales), 5 space

levels (customer, territory, region, country, global) & 3

time levels (short-term, medium & long-term).

 Market can be defined as. 25
2
a) Potential market = interest in a market offer.

b) Available market = interest + income + access.

c) Qualified available market = interest + income + access +

qualifications (beer 21 yrs.)

d) Target market = part of qualified available market that company

decides to pursue.

e) Penetrated market

These definitions are a useful tool for market planning.

Market Demand
25
3

 Market demand for a product is the total

volume that would be bought by a defined
customer group in a defined geographical area
in a defined time period in a defined marketing
environment. (e.g. recession V/s prosperity)
under a defined marketing program. Hence,
market demand is a function.

 Market minimum (base sales) & market

potential (upper limit).
 25
 4
Market sensitivity of demand (expansible market V/s
non-expansible market)

 Organizations selling in non-expansible market must accept

the market size (level of primary demand for product
class) & direct effort to winning larger market share
(selective demand).

 Market penetration index (current level of market

demand vis-à-vis potential demand level) & company’s
share penetration index (current market share vis-à-vis
potential market share).
 Market forecast is market demand corresponding to one
level of industry marketing expenditure.
Company Demand
25
5

Company demand is company’s estimated share

of market demand at
alternative levels of company marketing effort in a
given time period. This
depends on size & effectiveness of marketing
expenditure relative to
competitors.

Company sales forecast is expected level of

company sales based on chosen
marketing plan and an assumed marketing
environment.
 25
 6
Sales quota is sales goal set for a product line, company
division or sales representative. Sales quota higher than
sales forecast.

 Sales budget is conservative estimate used for current

purchasing, production & cash flow decisions.

 Company sales potential is maximum company demand

as company marketing effort increases relative to
competition.
This will always be less than market potential.
Estimating Current Demand
25
7

1) Total Market Potential

a) Total Market Potential = Potential No. of Buyers

X Average Quantity purchased by a buyer X Price

b) Chain Method – Potential for sweetened milk

for urban adults = Urban population above 18
years X Personal discretionary income (urban) per
capita X Average percentage of discretionary
income spent on food X Average percentage of
amount spent on food that is spent on beverages
X Average percentage of amount spent on
beverages that is spent on dairy beverages X
Expected percentage of amount spent on dairy
beverages that will be spent on sweetened milk.
 25
2) 8
Market –Buildup Method – Identify all potential buyers
in each market & estimating their potential purchases
(based on some norm e.g. lathes per hundred employees
or per Rs. 1 million sales).

3) Multiple-factor Index Method – can use existing

market indices or develop own market indices based on
assumptions.
a) RK Swamy – BBDO Guide for urban markets uses 18
variables.
MICA Rural Market Ratings for rural markets uses 6
variables.

b) Developing own market indices.

 MULTIPLE FACTOR BUYING POWER
INDEX 25
9
Step 1.
Specific customer profile in terms of factors. E.g. Demographic
> 30 years
Economic MHI > 20,000
Step 2.
For each market, calculate percentage of each factor V/s total
e.g. Demographic % = Markets men > 30 years
All India men> 30 years
Step 3.
Determine importance weight of each factor
Demographic = 40%
Economic = 60%
Step 4.
BPI of a market = 0.4 X Demographic % + 0.6 X Economic
%
 CATEGORY DEVELOPMENT INDEX
26
ESTIMATED
SALES
0
(BASED ON ACTUAL
BPI BPI) SALES CDI

NATIONAL 100 2,00,000 2,00,000 -

MUMBAI 14 28,000 56,000 200

BANGALORE 7 14,000 42,000 300

DELHI 5 10,000 10,000 100

CALCUTTA 1 2,000 1,000 50

 BRAND DEVELOPMENT INDEX

SAY FIRM A HAS A MARKET SHARE OF 15% = 30,000 26

1
ESTIMATED
SALES
(BASED ON ACTUAL
BPI BPI) SALES BDI

100 30,000 60,000 -

NATIONAL

MUMBAI 14 4,200 8,400 200

BANGALORE 7 2,100 4,200 200

DELHI 5 1,500 2,250 150

CALCUTTA 1 300 300 100

Estimating Future Demand
26
2

1) Time series

2) Econometric Models of forecasting involving 3 stages –

macroeconomic forecast, industry forecast, company
sales forecast.

3) For business buyers-- buyer-intention surveys.

 26
All forecasts are based on 3

a) What people say – survey of buyer’s opinions or those

close to them.

b) What people do – test market.

c) What people have done – analysing records of past

buying behaviour or using time-series analysis or
statistical demand analysis.
Methods
1) Surveys of buyer’s intentions – eg. Consumer durables, 26
industrial products. Buyers should have clear intentions,4will
be implementing them, willing to disclose.

2) Composite of sales force opinion – need to take with

pinch of salt as pessimistic or optimistic. Also tend to be
unaware of larger economic developments. May deliberately
underestimate, or have no time.
To encourage better estimating ,share records of past
forecasts with actual sales & also description of company
assumptions on business outlook, competitor behaviour &
market plans. Benefits are that sales force best single group,
greater confidence & incentive to achieve (as self driven) &
the grass roots forecast provides detailed estimates broken
down by product, territory, customer & sales rep.

3) Expert Opinion – Dealers, Distributors, suppliers, marketing

consultants, Trade associations.
Group discussion method or pooling of individual estimates
or Delphi method.
4) Past-sales analysis –

a)
26
Time Series – break down past sales into trend, cycle, seasonal &
erratic & project into future. 5

b) Exponential smoothing consists of projecting the next period’s

sales by combining an average of past sales and the most recent
sales, giving more weight to the latter.

c) Statistical demand analysis consists of measuring the impact

level of each of a set of causal factors (e.g., income, marketing
expenditures, price) on the sales level.

d) Econometric analysis consists of building sets of equations that

describe a system, and proceeding to fit the parameters
statistically.

5) Market – test method- especially desirable in forecasting new

product sales or established product sales in new distribution
channel or territory.