STRATEGIC BRAND MANAGEMENT - Google Groups

STRATEGIC BRAND MANAGEMENT

Prof. Abhilash Ponnam

Introduction and CBBE formation

With case: BARBIE

Meaning of BRAND

Brand is a name, term, sign, logo or symbol or a

combination of them intended to identify the offerings of

the seller and differentiate them from other offerings…

AMA

Product and Brand

Def: Need, want satisfying offering

Meaning of product:

Core benefit level: fundamental need

Generic product level: no frills version

Expected product level: expected version

Augmented product level: + additional features

Potential product level: Possible transformations

Two products which intend to satisfy same need / want might have same product meaning but may have different brand dimensions.

Can you site an example from CASE?

How brands contribute to value creation?

By creating perceived differences among products

through branding and by developing a loyal consumer

franchise, marketers create value that can translate to

financial profits

Brands signal benefits to consumers. Benefits are of two

kinds: functional and symbolic. Symbolic benefits allow

consumers to portray their self image

How Barbie brand adds value to toys?

Kinds of products

Search: Physical perception

Experience: Usage based perception

Credence: Belief only

Examples?

Brands signal quality in case of credence based goods

How was Barbie initially supposed to be positioned? What aspects of branding helped Barbie made parents believe that Barbie doll can serve the purpose?

Brands reduce risk

Functional risk

Physical risk: heath hazard

Financial risk: not worth the price

Social risk: embarrassment

Psychological risk: affects mental well being

Time risk: failure of product results in opportunity cost of

finding other satisfactory product

Which risk was targeted by feminists in early 1960s as

the one which Barbie was promoting?

________precedes management

Customer Based Brand Equity

Value attributed to brand by the consumer is CBBE

Differential effect of brand knowledge on

consumer response to marketing of a brand

What differentiates Barbie from any other toy doll? <bk>

How do you tap the consumer response to barbie as a

brand? / How was the name barbie leveraged? (pparbe)

Do you think that it is right strategy to undertake price

cuts to improve barbie sales? (de)

Foundation for CBBE

Explanation of Associative Network Theory

First Reading assignment: Keller‘s Paper on Brand Equity

formation and measurement

Brand knowledge consists of two components namely

awareness and image

Brand awareness: Recognition and Recall

Brand Image: Consumer perception of brand as reflected

by brand associations held in human memory.

Brand associations are informations pertaining to the

brand.

From the case, elucidate how kids perceive barbie, how

parents perceive barbie and how activisits perceive

barbie?

Sources of CBBE

CBBE occurs when consumer has high brand awareness

coupled with strong, unique favorable associations in memory.

Awareness:

Recognition: prior exposure

Recall: Ability to recall when product category is cued.

Advantages of brand awareness

Learning advantages: Reinforcing with additional

associations becomes very easy if brand awareness exists.

Ex: Manappuram Gold Loans

Consideration advantages: Increases the likelihood

that brand is considered for choice (is a part of

consideration set)

Ex: Shopping lists, memory based purchases

Choice advantages: Mere brand awareness might some

times result in choice in following cases:

Low involvement product categories

No product knowledge

Un-ablility to comprehend perceived differences across

brands: Low purchase motivation

How to increase B. Awareness

Increase familiarity using repeated exposure

Forging associations with product category

Forging associations with relevant purchase, consumption

cues.

What strategies did Barbie adopt to increase its awareness?

Strength of Associations

How deeply consumer thinks about product information

and relates it to existing brand knowledge

Factors strengthening brand associations:

1. Personal relevance

2. Consistency with which associations are presented

over time

Favorability of Brand Associations

Desirability:

Relevance

Distinctive

Credible

Deliverability:

Ability of the product to perform

Prospects of communicating the perf.

Sustainability of cmuncted perf. over time

Uniqueness of Brand Associations

Brands share associations with immediete product

category and broadly related product category

Why is CBBE of barbie eroding? What do you attribute it

to?

4 steps of Brand building: BRAND PYRAMID

Brand Salience

How easily is the brand evoked under various situations

Breadth: In which all situations?

Depth: How often? How likely?

Product Category Structure:

Brand

Product type non oh

Product category flav

Product class beverage

Brand Performance

How well the brand meets functional needs

What determines performance?

Primary ingredients and suppl. Features

Reliability, durability, servicability

Service effectiveness, efficiency, empathy

Style and design

Price

Brand Imagery

Ability of the brand to meet consumer‘s psychological and

social needs.

Depends upon the extrinsic properties of the product

Factors determining brand imagery:

User profiles

Purchase and usage situations

Personality and values

History, heritage and experiences

Brand judgments

Personal opinions or evaluations of the brand

What do consumers judge brand upon?

Quality

Credibility

Consideration

Superiority

Brand Feelings

Emotional responses / reactions

Kinds of feelings:

Warmth

Fun

Excitement

Security

Social approval

Self respect

Resonance

Psychological bonding with the brand

How?

Loyalty

Commitment

Attachment

Active engagement

Brand Identity Prism

Brand Physique

Physique encompasses all the palpable attributes of brand. It is often termed as outward face of brand.

How to identify Physique:

Look and feel of the product(s)/service(s) of the brand;

Specific characteristics that remain common in the entire product portfolio;

Specific traits/characteristics of the product without which brand is reduced to mere name.

Brand Physique of Kingfisher can be connoted with Zest, Youth and Luxury

Brand Personality

Brand personality can be measured in terms of human

personality traits which brand exhibits

Consumers prefer to choose brands with personalities

that match their own ideal personality

How to identify brand personality?

Personality of brand ambassador or any other person

who ideally represents corporate face of the brand. (e.g.,

most often in IT Companies, CEO serves as face of brand

in lieu of brand ambassador)

Events with which brand is associated.

Personality of Kingfisher: flamboyant, frivolous, yet

professional.

Brand Culture

Culture is the basic principle governing the brand in its outward side

How to identify culture:

Significance of name, slogan or logo type and how are they attributable to deep roots of branding;

Company Public Relations approach (PR); and

Corporate Social Responsibility.

Culture of Kingfisher: Passion for Success, Glocal Values and Promise of Growth.

Brand Relationship

brand relationship defines the mode of conduct that most

identifies the brand.

How to identify brand relationship:

Conduct of personnel at service points;

Steps taken towards maximizing customer satisfaction; and

Customer Relationship Management (CRM) approach.

Relationship of Kingfisher: exclusive, loyal and mesmerizing.

Brand Reflection

Reflection can be defined as perceived target with which the customer wants to be identified with

How to identify brand reflection:

Target segment appearing in the brand communication; and

Placement of product with respect to others in the retail outlet/market space.

Brand reflection of Kingfisher: young minded, luxury seeker and successful person.

Self Image

Self image is the target‘s own internal mirror when s/he

interacts with the brand.

How to identify self image:

Profile of target segment where most of the

product/service range of the brand fall into

Brand Nomenclature

Self Image of Kingfisher: chic, regal and a page 3 persona

Brand Positioning

Haagen Dazs Case

Definition of Positioning

Act of designing company‘s offerings and image so that it

occupies a distinct and valued place in the target

consumer‘s mind.

In modeling positioning, marketer needs to determine:

Who the target consumer is? __(1)

Who are the main competitors? __(2)

How is the brand similar to competitors?__(3)

How is the brand different from competitors? __(4)

(1) Consumer Segmentation

Market is set of buyers and potential buyers who have:

1. interest

2. income

3. access to a product

Segmentation divides market into groups of homogeneous

consumers who require similar marketing mixes.

Broad Classification of market segments:

Descriptive: Geographic, Psychographic Demographic etc

Behavioral: Usage rate, usage occasion, benefits sought etc

Criteria for a good segmentation

Identifiability (can it be easily identified)

Size (potential)

Accessibility (availability of media channels, distribution

outlets to reach that segment)

Responsiveness (possible reaction to tailored marketing

mix)

Segmentation of HD?

(2) Nature of competition

Competition can occur at benefit level than attribute level

Ex: Coca cola competes with soft drinks at category level

and all beverages at product class level and all

refreshments at benefit level.

Nature of competition for HD?

Frame of reference: Defining target segment and nature of

competition in formulating positioning

(4) Points of Difference

Similar to notion of USP and SCA

Ex: Aroma sealing package of Taj Mahal Tea processed with finest hand picked tea leaves

Ex: Big Bazaar: ―Is Se Sasta aur Accha Kahin Nahi‖

Points of difference can be intangible too!

Ex: Leela‘s Hotels: The essence of India

Ex: Amul: The taste of India

Points of difference in HD: before rp? After rp?

(3) Points of Parity Associations

Associations the brand shares with other brands

Category points of parity

Competitive points of parity

Category points of parity:

New products

Kellogs breakfast cereals

Zima

Competitive points of parity:

Negate the competitive points of difference:

Knorr: Good food matters

Maggi: Taste bhi health bhi

Positioning Guidelines

Defining and communicating competitive frame of

reference ___(1)

Choosing and establishing points of parity and points of

difference ___(2)

Defining and communicating the competitive frame of

reference:

Define category membership if the product is new to world

or new to market

How to communicate category membership

Communicate category benefits

Comparing to exemplars

Relying on product descriptor

(2) Choosing points of difference

Desirability: Relevance / Distinctiveness / Believability

Deliverability: Feasibility / Communicability / Sustainability

Ex: Ivory Bath Soap

Establishing POP and POD

Problem of negative correlation: Low price but High

quality, Luxury yet Performance.

Separate the attributes: Head and Shoulders

Leverage equity of other entity: Coca Cola Splenda

Redefine the relationship: Positive Homeopathy

Product Categories

Wine

Hotel

Hospital

Real Estate (Stick to one product: Luxury Villas,

Apartments)

Malt Additives (like Horlicks, Boost etc)

What are core brand associations? (abst. Ben)

How do we elicit core brand associations ? (MM)

Brand Mantra:

A short 3 to 5 phrase which captures the essence of the

brand

Brand mantra should economically describe what brand is

and what it is not

Components of Brand Mantra

1. Brand function: Nature of the offerings

2. Descriptive modifier: Describes the nature of offerings

3. Emotional modifier: Describes the emotive aspect of

such offerings which brand provides

Nike: Authentic Athletic Performance

Disney: Fun Family Entertainment

Barbie?

HD?

King fisher?

Maggie?

Significance of Brand Mantras

Power from collective meaning

Succinctly captures brand‘s points of difference

Characteristics of good brand mantra

Communicate

Simplify (memorizable)

Inspire

Internal Branding

Internal Branding assists the organisation in aligning its

internal process and corporate culture with those of the

brand.

The objective of internal branding is to ensure that

employees transform espoused brand messages into

brand reality for customers and other stakeholders.

Importance of Internal Branding

Whether the positioning of their corporate brand is successful remains dependent on the employees‘ behaviours in producing and delivering the service.

Customer-facing employees exert a certain degree of influence on customers‘ and other stakeholders‘ perceptions about the brand and / or the organization, which determines the success of brand positioning.

Employees who are responsible for ful-filling the brand promise are required to deliver the service in a consistent manner to attain and maintain the desired identity, a coherent corporate image, and a corporate reputation.

Employees who are responsible for ful-filling the brand

promise are required to deliver the service in a

consistent manner to attain and maintain the desired

identity, a coherent corporate image, and a corporate

reputation.

Choosing Brand Elements to Build

Brand Equity

Tourism Malaysia Case

Assignment for Saturday

GROUP PRESENTATION 1 / REPORT 1

Introduce your company

Introduce your product(s) and assess COMPETITION

Introduce your targeted segment

POSITION your brand and speak about the significance of your brand positioning

Design BRAND ELEMENTS

Speak about the interpretation and significance of each brand element

PRINCIPLE: not more than 5 slides, not more than 5 minutes

Report due next Saturday

What are brand elements?

Brand names

Symbols

Logos

Punchlines

Packaging

Brand ambassadors / Spokesman

Characters

Criteria for choosing Brand elements

Memorability

Should facilitate easy recognition and recall

Meaningfulness:

Informs the nature of product category (descriptive)

Specific information about attributes or benefits of the

brand (Persuasion)

Likeability

Fun and interesting

Aesthetically pleasing

Rich imagery

Transferability

Can the logo be applicable for new products?

Can it work across geographic boundaries and cultures?

Adaptability

Flexible / Updatable

Protectability

Legally, competitively

http://tctechcrunch.files.wordpress.com/logo-microsoft.gif

Options and tactics for building brand

elements

Have multiple brand elements: To translate the meaning to

multiple cultures

BRAND NAME

A good brand name captures the central theme or key

associations of a product in compact fashion

Characteristics of a good brand name:

Easy to spell and pronounce /WYBOROWA vodka

Familiar and meaningful /

Uniqueness/ Differentiated:

Brand Naming Procedures

Define objectives (6 considerations)

Generate names

Screen names

Eliminate names that have

Double meaning,

Unpronounceable

Might lead to legal complications

Contradicts positioning

Trial study finalized names: Do research, seek consumer

opinion

Exhaustively research

Select

Some local examples:

Lips and Licks bakery

Alibaba 40 kababs steak house

Logos and Symbols

Word marked: LOGOS

Non word marked: SYMBOLS

Rationale?

Versatile

Transfer meaning across cultures

Adaptable over time

Characters Lively symbols

Rationale?

Draw attention

Enhance likeability

Foster relationship

Adaptable across product categories

Slogans

Short phrases that communicate descriptive information

about the brand

Just do it

Worlds local bank

A diamond is forever

Rationale?

Builds both awareness and image

Signifies performance

Jingles

Musical messages written around the brand

Intel inside

Hutch U and I

Packaging

Designing Marketing Programs to

build CBBE

Body Shop Case

Drivers of new economy

Digitalization and connectivity

Disintermediation and Reintermediation

Customization and Customerization

Industry convergence

MACRO Level Policy Changes

Privatization

De regularization

Globalization

Result?

New Capabilities

To Consumers

Greater variety

More information

More interaction with marketers

Easier accessibility of goods and services

To Companies

Greater geographic reach

More information on consumers and competitors

Better 2 way communication

Personalization of offerings

Integrating Marketing Programs and

Activities to build brand equity

Reference: Dunn Micheal and Davis Scott (2003), ―Building Brands from the

Inside‖, Marketing Management, June, pp.32 -37

Brand Touch Point:

Brand touch points are all of the different ways that an organization's brand

interacts with and makes an impression on customers, employees, and

other stakeholders. A touch point is represented by every action, tactic, or

strategy taken to reach a customer or stakeholder.

Classification of Touch Points:

Pre-purchase experience touch points represent the various ways potential customers interact with your brand prior to deciding to do business with your company.

Objectives:

Each pre-purchase touch point interaction should be designed to shape perceptions and expectations of the brand, heighten brand awareness, and drive its relevance.

They should also help prospects understand the brand's benefits over competing brands and the value it brings in fulfilling their personal wants and needs.


Purchase or usage experience touch points are those

that move a customer from considering your brand to

actually "purchasing" it.

Objectives:

The main objective of these paints of interaction is to

maximize the value prospects see in your offerings and

instill confidence that they have made the right decision in

choosing your brand.


Post-purchase experience touch points come into play

after the "sale" and should maximize the customer

experience.

Objectives:

The goals of post-purchase experience touch points are

to deliver on the brand promise, meet or exceed

customer performance and usage expectations, and

increase brand loyalty and advocacy.

Brand Strategy:

Identify those touch points that drive the desired brand experience and allocate your resources against them.

Steps to determine which touch points are to be leveraged:

Step 1: Classify

Step 2: Identify those touch points that drive the desired brand experience and allocate your resources against them.

Step 3: Prioritize the identified touch points and determine which will have an immediate effect on brand perception and experience.

Step 4: Implement and manage your high-impact touch points on an ongoing basis.

Touch Point planning

Reference:

Jenkinson Angus (2007), ―Evolutionary Implications for Touch point Planning as a Result of Neuroscience: A Practical Fusion of Database Marketing And Advertising‖, Database Marketing & Customer Strategy Management Vol. 14 (3), 164–185

Create experiences that evoke specific experience of brand

Each touch point should be designed to influence customer thinking by stimulating belief in a strong idea related to the brand‘s core value preposition

Stimulate or reawaken positive emotions that establish a specific positive relationship between the customer and the firm

Provide help and confirmation, caring for likely needs,

problems and questions of individual customer or

segments

Stimulate specific desired actions which do not appear

manipulative

Ensure consistency among all touch points so that a

unique brand experience is (re)created.

Image Formation Process

Gartner, William C, Journal of Travel and Tourism Marketing, 1994, 2(2),191 – 216

Image Components

Cognitive, Affective, Conative

Distinctly different but hierarchically inter-related

Based more on perception than reality

Cognitive Component:

Images derived from fact

Evaluation of known attributes of the product or the understanding of product in an intellectual way

Sum of beliefs and attitudes of an object leading to some internally accepted picture of its attributes

Amount of external stimuli received about an object is instrumental in forming cognitive image

Affective Component:

Motives determine what we wish to obtain from object

being considered

Affective component is related to motives that one has

for destination selection.

Affective component becomes operational from choice

set onwards

Conative component:

It is analogous to behavior because it is action

component.

Conative component‘s relationship with other

components is direct.

It depends upon the images developed during the

cognitive stage and evaluated during affective stage.

Cognitive Image Formation:

Agent is a force producing a specific effect.

Image formation process can be viewed as continuum of separate agents that act independently or in some combination to form destination image unique to the individual.

Agents only influence cognitive image component.

Overt Induced 1: (TV, Radio)

Traditional forms of advertising like TV, Radio, Bill boards, brochures etc

Person receiving the message is not confused over who is sending it

Generally characterized by low credibility and high market penetration

Overt Induced II: (Middle Men)

Information received or requested from organizations

(middlemen, wholesalers, retailers) who are not directly

associated with the source but have vested interest in

consumer decision making process

There exists a degree of control of destination promoters

over images projected through tour operators.

Generally characterized by high credibility and low

market penetration

Covert Induced I: (Ambassadors)

Second party endorsement of products via traditional

forms of advertising

Recognizable spokesman may be employed to deliver

brand messages to counter credibility problem, decrease

psychological and social risk and increase recall.

Spokesman could be a celebrity or a satisfied customer.

Covert Induced II: (Ranking Agencies)

Second party endorsement through apparently unbiased

reports

Though consumer believes the message is from agent that

has no vested interest, the agent is in some ways

influenced by / manipulated by the source in a

development of projected image.

Example: Articles in newspapers, magazines about

destination from credible authors whose visitation,

publications expenses funded by destination promoters

There is no direct control over message by the source.

Autonomous: (News Reports)

Independently produced reports, documentaries and

news articles

Sub categories are news and popular culture ( movies,

non-news tv programming)

Has significant impact on image development

Promoters have no control over news content

High credibility and market penetration

Unsolicited Organic: (Your Friend‘s views)

Unrequested information received from individuals who

are believed to have no vested interest in the source.

Retention is generally low if the person has not requested

it and credibility depends upon the agent delivering the

information.

If the person has no previous personal exposure, this

form of information may have an impact

Solicited Organic: (Expert Opinion)

Requested information received from individuals who are

believed to have no vested interest in the source. Ex:

WoM

Characterized by high credibility

Organic:

Direct personal experience

Personalized Marketing

Marketing to individual consumer than to broad segments

of consumers

Kinds

Experiential Marketing

One to one Marketing

Permission Marketing

Relationship Marketing

Participatory Marketing

Experiential Marketing

Communicate not just benefits but also connect offering with unique experiences

Charge of Stuff: Commodity Business

Charge of Goods: Goods Business

Charge of Activities: Service Business

Charge of Customer time spent with you: Experience Business

Example: McDonalds, Disney World, Tourism, CCD, Barista… etc

Rules for Experiential Marketing

Plan for ―sensory‖ experiences

Think of consumption situations

Create holistic experiences which appeal both mind and

intellect

Leverage experiences into new platforms and to new

brand extensions

Be passionate about the brand

Examples: Singapore Airlines, Crayola Cryons

One – to – One Marketing

Principle: Treat each consumer uniquely by letting consumer directly speak to the company and customizing products that suits their needs

Ex: Ritz Carlton Hotel, Tesco Club Cards, Dell?

Permission Marketing

Principle : Attract consumer attention by giving some kind of inducement and then gradually converting them into consumers.

Strategies

Offer incentive

Teach the consumer about the product over time

Reinforce the permission in every contact

Incentivize to get more permission

Leverage permission to sales

Example:

Amazon.com, Alibris.com

Relationship Marketing

Rationale?

It costs 5 times to acquire new customer as much as

satisfying and retaining existing customers

Relationship Marketing:

Mass Customization

Aftermath Marketing

Loyalty Programs

Product Strategy

How consumers assess Perceived Quality?

Performance

FEATURES

Conformance Quality

Reliability

Durability

Serviceability

Style and Design

Brand Intangibles

Product Delivery and Installation

Promptness and Curtsey of Customer Service

Quality of Repair Service

Brand Imagery

Mc Kinsey‘s 3D Marketing

Functional Benefits

Process Benefits

Relationship Benefits

Pricing Strategy

Understanding Consumer Perception of Price

Internal Reference of Price

Fair Price

Last Paid Price

Upper Bound Price

Lower Bound Price

Competitive Price

Expected Future Price

Discounted Price

External Reference of Price

??

Factors influencing Value Based Pricing

Product Design and Delivery

Case of Louis Vuitton Moet Henesssey:

High Markups

Limited Availability

Company owned / operated merchandize stores

Strict QC

Advertising in Upscale Life style Mags

―In control of production => In control of quality

In control of distribution => In control of _____‖

Product Prices

Willingness to pay for a given product category

Undertake Price Segmentation

Example: Low Price Editions / Paper Back Editions (PHI)

HW: Read on EDLP

Production Costs

KANO Model

Channel Strategy

Design and management of intermediaries such as

wholesalers, distributors, brokers, and retailers

Channel Design:

Direct Channels: Company Customer

Indirect Channels: Company Intermediary Customer

Integrated Shopping Experiences:

Combine physical stores, Internet, telephone and catalogs

Which channel to choose?

Direct Channel.. When?

Product Information needs are high

Product Customization is high

QA is important

Purchase lot size is important

Logistics are important

Indirect Channel.. When?

Broad Assortment necessary

Availability is critical

After sales service is important

Risks of Hybrid Channels

Channel conflicts

Sabotage of one channel in favor of other channel

Strategies for Indirect Channels

Push Strategy: Incentivize ________?

Pull Strategy: Incentivize ________?

Retail Segmentation

Cooperative Advertising

Direct Channels Company owned retail outlets

Pros:

Customer awareness, education

Builds brand image

Cons:

Potential channel conflict

Web Strategies Surf online but purchase in store

Read on Private Labels: HW

Questions from the case:

1. Identify all the marketing concepts which were

endorsed by BS

2. What pricing strategy (policy) is adopted by BS?

3. What distributional strategy is adopted by BS?

4. Identify the direct and indirect distribution channels

utilized by BS

5. What is the reason behind adopting this kind of

distributional strategy?

Societal Marketing Concept

The societal marketing concept can be defined as the

organizations task which tries to identify the needs and

interests of the consumers and delivers quality services

or products as compared to its competitors and in a way

that consumer's and society's well being is maintained.

Societal Marketing

Social marketing uses commercial marketing theories,

tools and techniques to social issues

Questions on positioning

1. Why was the company repositioned?

2. Posterior to acquisition by Loreal, did the positioning

remain same?

3. Why was Loreal interested in acquiring BS

4. Were the apprehensions on deterioration of BI of BS

sustainable arguments?

IMC TO BUILD BE

Apple Case

How MC builds CBBE?

Creates awareness

Links POP & POD associations

Elicits +ve judgments, feelings

Results in Brand R_______?

New Media Environment

Emphasis of Internet

Burgeoning of User Created Content

TiVo (Set top Boxes) introduction

3 step model for judging ad effectiveness

Current brand knowledge

Desired brand knowledge

Does the ad help in reaching to desired BK

Persuasion Process

1. Exposure

2. Attention

3. Comprehension

4. Yielding (favorable response)

5. Intention

6. Behavior

Strategy

Target the right consumer

Use creative strategy for advertising

Ensure ad properly reflects the consumer‘s level of

understanding

Ad correctly positions the brand in terms of desirable

and deliverable POP and POD

Ad motives the consumer to consider the brand for

purchase

Ad creates strong associations so that they are elicited

during actual purchase situations

When should MC budgets be higher? Low channel support

Change in marketing program over time

Hard to reach segments

Complex consumer decision making

Non homogeneous consumer needs

Frequent product purchases in small quantities

When should MC budgets be lower? High unit value

Technical in nature

Requires demonstration

Must be customized

Purchased infrequently

When consumers can be easily identified

Marketing Communication Options

TV

Pros

Allows for sight, sound and motion

Wide reach

Ability to demonstrate product attributes better

Effectively portray user and usage imagery, brand personality and other brand intangibles

Cons

Fleeting elements are distractive

Large number of ads maketh consumer ignore them

Fragmentation of channels

High cost of production and placement

Message strategy: what ad wants to convey

Creative strategy: how it is conveyed

Radio

Good strategy for Radio Commercial

Identify your brand early in commercial

Identify it often

Promise a listener benefit early

Repeat it often

Print Cons

Static presentation

Pros

Can build user and usage imagery

Strategy

Is message clear at first glance?

Is the benefit in headline?

Is the illustration supportive?

Does the first line of ad communicate the head line?

Is the ad easy to read ad follow?

Is the product easily identified?

Is the brand or sponsor easily identified?

Other Communication Forms

Direct Response

Infomercials

Database marketing

Websites

Interactive ads

Mobile Marketing

Bill Boards and Posters

Movies (Product placement), Airlines, Lounges

POP

IMC Criteria

Coverage: Reach

Contribution: Stand alone effects of MC

Communality/ Consistency: Common meaning shared

with other communication options (encoding variability

principle)

Complementary: Extent of unique associations are

emphasized

Versatility: Extent to which MC is effective independently

across different target segments

Cost

Leveraging Secondary Brand

Associations to build Brand Equity

Cricketanment CASE

Brands themselves may be linked to other entities which have their own knowledge structures.

Other knowledge Structures:

Companies

Countries or other geographical areas

Channels of distribution

Other brands

Characters

Spokesman

Events

Third party sources

When are secondary brand associations

important?

Consumer lacks motivation

Consumer lacks knowledge / ability to judge product related

concerns

When can secondary brand associations be

“leveraged”?

Pop Star Kesha Rose Sebert to endorse a pan Indian NGO

involved in rural women health care (a)

Cummins: Industrial turbine manufacturer to sponsor FIFA (m)

Pandit Ustad Allah Rakha as brand ambassador of MTV? (t)

Strategies to leverage SBAs

Commonality leveraging strategy: Congruence with desired

brand associations

Katrina and Lux

John Abraham and Fair and Handsome

Vishwanathan Anand and NIIT

Complementarity leveraging strategy:

Hardly few or any common associations

Cons of leveraging SBAs

Loss of control over the brand

Managing the transfer process so that only relevant

secondary knowledge becomes linked to brand may be

difficult

What are the pros?

Next: Kinds of SBAs

Family or corporate brand as source of

brand equity

Pros:

Immediate transfer of equity of parent brand thru thru transfer of attributes, benefits, attitudes, people, relationships, programs, values and corporate credibility of parent brand

Cons:

-------?

Discuss WHY

Dabur Honey, Dabur Chawalprash, Dabur Real Fruit Juice

Tropicana fruit juice, Gatorade energy drink, Quaker Oats

Country of Origin as SBA

Fill up the blank:

Designed in Korea

Made in USA

Engineered in Germany

Bottled in Scotland

Brewed in France

______ in India

Channels of Distribution

Omega Watches:

Available in all leading watch outlets

Available in Hyderabad Central only

Levis Sears and Penny‘s RH Macy‘s case

Co branding as a SBA

micromax "MTVX360"

What is co-branding

Two or more brands are combined into a joint product or are marketed together in some fashion

Pros

Create more compelling POP and PODs

Open additional sales from new consumers

Accelerate adoption

Reduce cost of product introduction

Cons

Lack of control

Expensive

When co-branding?

Poorly differentiated product

Ingredient branding? Meaning and Example

SELF CHECK for Co-branding

What capabilities does the company not have

Resource constraits

Growth goals for next ___ years

SELF CHECK for Ingredient branding

Ingredient should offer superior performance

Ingredient should have advantages over existing

alternatives

Logo of ingredient brand should be recognizable by the

targeted audience

Push and Pull programs to promote branded ingredient

Licensing

Contractual agreements whereby firms can use the logos, characters and brand elements of other brands to market their own brand

Fashion retailer Bershka licenses Simpsons

Firms with little CBBE rely on the image of their Licensor

Corporate Trade Mark Licensing

Old Toledo licensed JEEP brand name

―Inappropriate licensing can dilute brand image‖

Celebrity endorsement

Amir Khan VS Amitab bachhan

Cons:

Endorsers can endorse so many products that they lack any specific product meaning or seen as opportunistic

No reasonable match between celebrity and product

Celebrity image tarnishes brand image

Consumers believe endorsement is for money and that they personally don‘t use the product

Celebrity detracts the message to be conveyed by the brand

Checklist

Choose well known celebrity whose associations are

relevant to the brand and hence transferable

There must be a logical fit between the person and the

brand

Advertising and communication program should

creatively use the celebrity that encourages relevant

association transfer only

HW:

Read Sports cultural and other events

Third party sources

Developing Brand Equity Measurement and

Management System

Emergence of Marketing Concept

Production Concept (1920s)

Firm should focus on those products that it could produce most efficiently

Creation of a supply of low-cost products would in and of itself create the demand for the products

Key Questions:

Can we produce the product?

Can we produce enough of it?

Sales Concept

(Western Industrialization: Post 1930’s)

Companies should not only would produce the products, but also would try to convince customers to buy them through advertising and personal selling.

Key Questions:

Can we sell the product?

Can we charge enough for it?

Marketing Concept (Post WW2)

What do customers want?

Can we develop products which can satisfy the consumers

How can we keep our customers satisfied in long run?

Strategy:

Focusing on customer needs before developing the product

Aligning all functions of the company to focus on those needs

Realizing a profit by successfully satisfying customer needs over the long-term

Measurement approaches to CBBE

Indirect approach: Assess the potential sources of CBBE

by identifying and tracking consumer brand knowledge

Direct approach: Measure the outcomes of brand equity

Brand Value Chain:

A structured approach to assess both the sources and

outcomes of CBBE.

Stage 1:

Marketing Program Investment:

Product research

Product development

Trade

Marketing communications

Employee training

Program quality multiplier:

Clarity

Relevance

Distinctiveness

Consistency

Stage 2

Customer mindset:

Awareness

Associations

Attitudes

Attachment

Activity

Market place conditions multiplier

Competitive superiority

Channel and other intermediary support

Customer size and profile

Stage 3:

Market Performance

Price premium

Price elasticity

Market share

Expansion success

Cost structure

Profitability

Investor sentiment multiplier

Market growth

Risk profile

Brand contribution to company‘s portfolio

Stage 4

Share holder value

P/E ratio

Stock price

Brand Tracking

Long term strategic orientation: Brand Audit

Short term tactical decisions: Brand Tracking

Tracking studies focus on how value is created

What to track in product brands?

Awareness

Associations

Imagery

Benefits

Specifically:

Functional performance

Convenience or ease of use

Brand Personality

Pricing and value component

Whom to track?

Users

Non Users

Channel Members

Sales People

What to Track?

Competition

Different segments

How to interpret tracking studies

Identify relevant brand associations

Associations that determine behavior (+,-)

PODs

Impact of various communications in image formation

Establishing BE Management System

1. Develop a brand equity charter

2. Assemble brand equity reports

3. Define brand equity responsibilities

Brand Equity Charter

Formalize the company‘s view of BE into a document

What should it contain?

Firms view of BE concept

Key brands and their scope

Actual and desired levels for each brand

Method of brand equity measurement

How brand equity should be managed

Guidelines in devising marketing programs

Guidelines on treatment of brand

Brand Equity Report

Status of the brand

Section 1

Internal and external measures of brand performance

Sources and outcomes of brand equity as revealed by tracking study

Section 2

Product shipments / CD

Category trends

Cost breakdowns

Price and Discount Schedules

Sales and Marketing Information

Profit assessments

Define BE Responsibilities

CBO

Managing marketing partners

Role of CBO

Champion and protect the brand: Look and Feel

Envision the future of the brand

Is accountable for:

Advertising

Positioning

Corporate communication

Consumer and market insights

Market Orientation

Reference: Reid Mike, Luxton Sandra, Mavondo Felix (2005), ―The Relationship

between Integrated Marketing Communication, Market Orientation and Brand

Orientation‖, Journal of Advertising, Vol.34, Issue 4,Winter, pp.11 - 23

Market Orientation suggests that all information on all

important buying influences permeates every corporate

function, and, in accordance, strategical and tactical

decisions are made interfunctionally and interdivisionally.

Elements of Market Orientation:

Customer Orientation: Active encouragement of customer comments and complaints, an after-sales service emphasis, regular evaluation of ways to create superior product/service value and regular measurement of customer satisfaction levels.

Competition Orientation: Regular monitoring of competitor activity, the collection and use of market information on competitors to develop marketing plans and using sales force to monitor and report competitor activity

Interfunctional Coordination: Sharing of market information across departments, interaction of marketing personnel with other departments and joint assessment of customer needs

Brand Orientation:

Brand Orientation:

Brand Orientation

―an approach in which processes of the organization

revolve around the creation, development and protection

of brand identity in an ongoing interaction with target

customers with the aim of achieving lasting competitive

advantage‖

How brand orientation is achieved

Focus on distinctiveness: Distinctiveness of a brand in the eyes of consumers is not a property of the actual product, but a product of communications of brand

Brand functionality or utility: Brand ulitity is not absolute attribute of a product or service because many products serve the same function, rather brand functionality is heavily influenced by brand communication

Value addition: Value is increasingly being created outside the physical product by factors such as interactions between organizations and customers, responsiveness of complaints and customer needs and expectations.

Symbolic capabilities of the brand in line with customer personality and values

Elements of BO

Shared brand vision: Brand is considered to be integral with other resources and competencies and there is an explicitly communicated vision with clear allocation of responsibility and authority

Shared brand functionality: brand communicates distinct functional attributes and benefits different from competition

Shared brand positioning: All communication related to the brand is linked to appropriate competitive positioning and value

Brand return on investment: Brand-oriented managers see brands as underpinning the orgnization‘s strategic resource base

Brand symbolism: brand has strong emotional and symbolic appeal and brand is the expression of customer‘s personality and values

Brand value-adding capability: Value is increasingly being created outside the physical product by factors such as interactions between organizations and customers, responsiveness of complaints and customer needs and expectations.

Measuring Sources of Brand Equity

Aaker’s (1991) Classification of brand

associations:

Product attributes

Intangibles

Customer benefits

Relative price

Use/ application

User/ customer

Celebrity/ person

Life style/ personality

Product class

Competitors

Keller’s (1993) classification: Brand associations could be classified into here major categories of

increasing scope: attributes, benefits and attitudes.

Attributes are descriptive features that characterize a product or service.

Attributes can be further classified into product related and non product related.

Benefits are the personal values customers attach to product or service attributes – that is, what consumers think the product or service can do for them.

Benefits can be further classified into functional, symbolic and experiential.

Brand attitudes are defined as consumers overall evaluations of the . brand.

Lets discuss about brand associations Reference: Supphellen Magne (2000), ―Understanding Core Brand Equity: Guidelines for In-depth Elicitation of Brand Associations‖, International Journal of Market Research, Vol.No. 42, Issue, 3, 319 -64.

Forms of brand associations:

Though Brand associations are generally considered to be verbal various other forms of memory associations exist which include visual, sensory and emotional.

In low involvement conditions, where individuals do not spend a lot of time and effort considering alternatives, emotional brand associations are often the dominating determinants of choice.

Characteristics of Brand Associations:

Most of the brand associations are unconscious as only a

minor proportion of the impression are subjected to

deliberate reasoning.

Associations are usually stored as metaphors. Metaphor is

description of thing in terms of different things.

Some associations are part of many clusters and some are

present only in some clusters which implies unless

specific situations are elicited brand associations cannot

be elicited.

Problems of Association Elicitations

Access: A majority of brand associations are unconscious; this

could reflect a lack of ability of the researchers to surpass the

conscious primary associations which are easily elicited.

Verbalization: Associations which are not verbal are

(generally) not subjected to active cognitive reasoning and not

readily communicable

Censoring: In spite of successful elicitation of hidden

unconscious associations, respondents might consciously or

subconsciously hold them and report only those associations

that comply with their desired identities.

Three general principles to minimize

problems of elicitation:

Principle 1: Focus groups are not sufficient, long personal

interviews are needed

Principle 2: Select portfolio of techniques that are

complementary with respect to the three problems of

access, verbalization and censoring

Principle 3: Validate elicited associations

Challenges of access and verbalization:

i. Include at least one visual technique:

Mood board technique: Respondents are instructed to

select pictures from magazines or newspapers that

represent what they think or feel about the brand.

Respondents describe the pictures, and associations are

derived from content analysis of the descriptions

ii. Include at least one object projective technique:

Object- projective techniques respondents are instructed

to describe the brand in terms of a car, an animal, a fabric

a vegetable, a celebrity etc. Such stimulus objects are well-

known and have rich associative networks.

iii. Use primary associations as a cue for secondary associations

and so on:

Snow-balling technique: Use primary associations as

stimulus words for subsequent probing of secondary

associations (e.g. ‗what do you associate with quality?‘). In

turn some important secondary associations may be used

as cues in third test and so on. This technique is especially

suited for gaining in-depth insight into the multifaceted

nature of primary associations.

iv. Probe for relevant situations:

Situation-projective technique: With this technique,

respondents are subjected to drawings of situations

involving brand (e.g. man driving Mercedes) and

instructed to describe the situations and the thoughts and

feelings of people involved.

v. Use real stimuli when practically possible:

The use of real stimuli may elicit extra associations. For

example, before asking users of a coffee brand about

associations, we let them have a taste of the coffee. The

result could be very rich descriptions of taste

experiences, emotions and social experiences involving

the brand. Other forms of real stimuli include brand

elements such as brand names, logos, symbols, brand

characters, slogans, jingles and packages.

vi. Use established scales for emotional and personality associations:

Scale of emotions:

Burke, M.C & Edell, J.A (1987) The impact of feelings on ad-based affect and cognitions. Journal of Marketing Research, 26, pp. 69-83

Personality Scale:

Aaker Jennifer (1997) Dimensions of brand personality, Journal of Marketing Research, 34, pp.347 -56

Mitigating Censoring Effects:

Person projective techniques: Using PPT, respondents are

instructed to report associations on behalf of some

person or figure belonging to the same group as the

respondent

Sample issues

Elicit associations from different types of customers (should

contain heavy, average, light and non-users) and from the

advertising people.

Divide the sample into two and include both users and non-

users: Don‘t run the all techniques on same sample, there

is a probability of getting similar response, also every

technique should have participants comprising of both

users and non-users.

Order of techniques:

Start with instructions and visual techniques and probe to

verbal techniques

Laddering Technique

Reference: Reynolds, T.J. and Gutman, J. (1988) ―Laddering Theory, Method,

Analysis and Interpretation‖ Journal of Advertising Research, Vol.28,

February, pp.11-31

STEP 1: Elicitation Distinction:

Preference Consumption Differences: Respondents, after providing a

preference order for, say, brands of coolers, might be asked to tell why they

prefer their most preferred brand to their second most preferred brand, or

more simply to say why one particular brand is their most preferred (or

second most preferred, least preferred, etc.)

Differences by Occasion: In most cases it is desirable to

present the respondent with a personally meaningful

context within which to make the distinctions.

For example, it might be suggested to a mother with

young children that she has been out shopping with her

children, and it being lunch time, she wants to stop for

lunch on the way home. Three convenience restaurants

could be compared for their suitability with respect to

this usage situation.

STEP 2: Selecting key distinctions to ladder:

Typically, a respondent can only mention 10 to 12

different distinctions for a given product category.

Interviewer can present a card with all the mentioned

distinctions on it and have the respondent rate the

relative importance of each, then select those with the

highest ratings

―Laddering refers to an in-depth, one-on-one interviewing

technique used to develop an understanding of how

consumers translate the attributes of products into

meaningful associations with respect to self, following

Means-End Theory. Linkages between the key perceptual

elements (is expressed by the respondents) across the

range of attributes (A), consequences (C) and values (V).‖

How to ladder

Evoke situational contexts: Respondent states he takes

more wine coolers in party than in private

Unblocking: Respondent states he likes full bodies taste of

wine cooler

What is so good about full bodied taste

Negative laddering: Why wouldn‘t you buy a 16 ounce

bottle when it is available

Age regression contrast probe: Ask as to whether the

respondent behavior has changed over time

Third person probe: Why do your friends drink wine

coolers?

Free Associations Technique

Ask subjects what comes to their mind when they think

of the brand

Provide an indication of strength, favorability and

uniqueness of brand associations

PROJECTIVE TECHNIQUES: NESCAFE STORY

BUBBLE EXERCISES

COMPARISION TASKS: If your BDM teacher was a bird

Zaltman Metaphor Elicitation Technique

Technique for eliciting interconnected constructs that

influence thought and behavior

Participants select images from their own sources that

reflect the research topic

Depth interview is performed upon the participant

thereafter

Interviewer does a guided conversation with the

participant

Story telling the content of each picture

Missing images and what‘s their relevance

Sort pictures into meaningful groups and name each group

Elicit constructs and their interconnections

Choose the most representative picture

Most opposite picture

Sensory images: color, smell, taste etc

Mental Map generation

Creation of summary image

Video recording of synopsis

Brand Personality

Qualitative method:

Description of brand as a person

Quantitative method:

Big 5

Quantitative Research Techniques

Brand Awareness

Recognition:

Missing letters

Distorted logos

Recall:

Situations: Healthy snack, Quick snack, Snack with friends

Missing letters: D_l_ e & G_b_ _n_

Brand Asset Valuator:

Reference: Agres, Stuart J. and Dubitsky, Tony M. (1996), ―Changing needs for brands‖, Journal of Advertising Research, Jan/Feb, pp. 21-30

4 Pillars of brand building:

Differentiation: ―Perceived distinctiveness of the brand from others and its reason for being‖

Relevance: It is the personal appropriateness of the brand. If a brand isn't personally appropriate to consumers, it is neither going to attract nor keep them—certainly not in any great numbers.

Esteem: How highly consumer regards the brand under consideration. Esteem can be explained by high quality and popularity.

Knowledge: Being aware about the brand and existence of belief of having an understanding about what the brand stands for.

Identifying where am I?

High on differentiation and low on other attributes: New

brand

High on esteem and low on relevance: Maturing brand

Differentiation > Relevance > Esteem > Knowledge: New

Strong Brand

Opposite pattern to the above: Fading Brand

Check my Health!

Growing brand: Esteem > Knowledge

Knowledge > Esteem => selling more to same consumer

at lower and lower prices ; + => with low quality

perceptions => Potential occurrence of discount selling.

Brand Image Assessment

Brands Service

Time Ambience Entertainment

Service

Staff Taste Customization

Sitting

Arrangement Hygiene

PD 3.25 3.50 3.25 2.75 4.00 3.00 2.75 3.50

DD 2.75 1.50 2.25 2.75 2.50 2.00 1.50 2.25

Sharmaji 2.25 2.25 2.50 2.50 1.75 2.50 2.50 2.50

Loventilla 1.75 2.75 2.00 2.00 1.75 2.50 3.25 1.75

Perceptual Mapping: Attribute based

Preference Mapping:

Dimension 1: Variety & Taste

Dimension 2: Ambience

Measuring outcomes of CBBE

Videocon Multibrand Strategy

Comparative Methods

Measure differential effect of brand knowledge

Two kinds: Brand based comparative, Marketing based comparative

Brand based comparative: Reaction to element of marketing program for the brand vis a vis fictitious brand

Market based comparative: Reaction to element of marketing program for a brand vis a vis reaction to element of marketing program when changed for the same brand

Brand based comparative approach

Example: Blind test

Fictitious product could also be a product category

leader or exemplar

Critique: Lacks realism

Marketing based Comparative Approach

Example: Dollar metric, Demand discount curve

Explore potential brand extensions

Critique: It is difficult to ascertain whether the changes in

marketing stimuli are caused because of brand knowledge

or changes in product category knowledge

Conjoint analysis:

Critique: unrealistic product profiles

Holistic Methods

Measures overall value of brand in financial terms or

utility terms

Residual approach: Preference for brand – Preference for

physical product

Valuation approach: Calculates financial value of the brand

Residual Approach Preference of branded product – Preference of physical product =

Preference for the brand

Swait and Colleagues equalization price: EP is a measure of the implicit value to the individual consumer of the brand in a market in which some degree of differentiation exists vis-à-vis its implicit value in a market characterized by no brand differentiation.

Park and Srinivasan‘s Method (1994)

Brand equity = overall preference - objective multi-attribute preference

Brand equity = (overall preference – subjective multi-attribute preference) + (subjective multi-attribute preference – objective multi-attribute preference)

Brand equity = (Non attribute based component) + (Attribute based component)

Critique:

Too many attributes, undesirable

Attributes could build brand equity

Research Note

CBBE as a measure of price premium

Dollar Metric by Aaker (1996): the amount a consumer is

willing to pay for a brand in comparison with another a

non-branded product offering similar features

Crimmins (2000) proposed that brand equity is the ―ratio of

the brands price to its competitor‘s price when both are

equally desirable to consumer, minus one.‖

Multi-attribute measurement of CBBE

Conjoint Analysis by Green and Wind (1975)

Survey based measure by Park and Srinivasan (1994)

CBBE as a combination of multiple convergent measures:

Agarwal and Rao (1996)

Psychometric Measurement

Yoo and Donthu (2001)

Netemeyer et al (2004)

My Experiment AMSJ (forthcoming)

Valuation Approaches

Why should brands be valued?

Mergers and acquisitions

Brand licensing

As collateral

Brand management decisions:

Allocate resources

Develop brand strategy

Prepare financial reports

BCG Matrix

Accounting perspective of branding

Intangible assets are any factors of production or

specialized resources that permit the company to earn cash

flows in excess of the return on tangible assets.

Ex: Patents, trademarks, licensing agreements

Why should brands appear on balance sheets?

Current approach to deduce the value of a

brand

Cost approach

Market approach

Income approach

Cost approach:

Amount of money required to reproduce or replace the brand.

Includes:

Costs for research and development

Test marketing

Advertising etc.

Criticism:

Doesn‘t indicate future profitability

Difficult to isolate investment in brand development from

other investments

Replacement also depends upon competitive, legal,

logistical obstacles and obviations

Market approach:

It is the present value of the future economic benefits to be derived by the owner of the asset.

It is the amount that can be exchanged today in lieu of selling the brand between willing buyer and willing seller in open market transaction

Criticism

Brands are transacted in open market

Income approach:

Discounted value for the future earning stream for the

brand

Three approaches:

1. Royalty earnings

2. Profit premiums

3. Total profitability due to brand name – cost of

maintenance – cost of taxation

Interbrand’s valuation methodology

Income based approach:

Steps:

1. Market segmentation and calculating value of the brand

in each segment

2. Financial role of brand: Calculate brand revenues –

operating costs – taxes – charge for capital employed

for each segment

3. Demand role of brand (role of branding index): Identify

various drivers of demand and determine the degree to

which each driver is influenced by brand.

4. Drive brand discount rate based on risk profile of its

expected future earnings

5. NPV of brand earnings discounted by brand discount

rate.

Designing and Implementing

Branding Strategies

Branding strategy / Branding architecture

Which brand elements can be applied to existing / new products

Branding strategies:

Branded house: Umbrella branding

House of brands: Collection of individual brands with different names

Role of branding strategy?

Clarify the meaning of the brand

Motivate consumers to purchase the product

Brand product matrix

Product 1 Product 2 Product 3 Product 4

Brand 1

Brand 2

Brand 3

Brand 4

Brand line: (row) products + category extensions (breadth)

• Longer brand lines decrease the consistency of associated brand image if all

products use same brand (Laura Ashley)

Brand portfolio: (column) set of brands that a firm offers for sale in particular

product category (depth)

• Any brand in the portfolio should not harm or decrease the equity of the others

Some definitions

Product line: -

• Product line is a group of products within a product category that are closely related because they function in similar type of outlets, or fall within same price range or marketed to same consumer groups

Product mix:-

All product lines that seller makes available to buyer

Brand mix:-

Set of all brand lines that particular seller makes available to buyers

Depth of branding strategy

To target different price segments

To target different channels of distribution

To target different geographical segments

To increase shelf presence

To increase retailer dependence

To attract consumer seeking variety

To increase internal competition within firm

To yield economics of scale in advertising, sales, merchandizing, and physical distribution

MANTRA?

Maximize market coverage but minimize brand overlap

Roles of brands

Flankers: To create competitive points of parity with competitive brands so that flagship brands can retain their positioning

Must not be very attractive

At the same time, they must not be abhorrent

Cash cows: yield profitability despite of no marketing support

Low end entry level or high end prestige level: traffic pullers

Brand Hierarchy

Corporate brand (Pepsi)

Family brand (Frito-Lay's)

Individual brand (Lays)

Modifier (Achari Aam)

Corporate Image Dimensions

Common product attributes, benefits or attitudes

People and relationships

Values and programs

Corporate credibility: expertise, trustworthiness, likability

Using cause marketing to build CBBE

Some revenue earned is contributed towards a specific cause

Advantages?

Builds corporate brand image

Builds awareness

Establishes brand credibility

Evoke brand feelings

Create sense of brand community

Elicit brand engagement

Designing cause marketing program

Associate cause with brand element (ronald mcdonald house charity)

Green marketing: Concern for environment

Green your product before you are forced to

Communicate environmental aspects of the products

Deliver on performance and price

Dramatize environmental benefits

Stress tangible benefits

Be consistent

Branding strategy

Corporate Dominant:

Corporate brand: Virgin Airlines, Virgin Mobiles

House brand: Dairy Milk Eclairs

Mixed Brand:

Dual brand: SURF Excel

Endorsed brand: 5 Star by Cadbury

Brand Dominant:

Mono brand: Lays

Furtive brand: Lexus

How should firm use different levels of

hierarchy?

Required:

Number of levels in the hierarchy

Desired brand awareness and brand image at each level

Combination of brand elements from different levels of

hierarchy

If at all one brand element can be linked to different

products

Deciding upon number of levels

Combining existing brand with a modifier = Sub branding

EX: Lenovo Think Pad, Horlicks Nutribars

Endorsement: Individual brand endorsed by parent / family

brand but not directly included in brand name. IPOD by Apple

Principle of simplicity:

Provide right amount of branding information.

Low involvement: 2 or 1

High involvement: More than 2

Deciding upon desired awareness and image

at each level

Principle of relevance:

Marketers should create associations that are relevant to as

many brands nested at the level below as possible.

Garnier: Apna Khayal Rahkna (Take care of yourself)

Principle of differentiation:

Marketers should distinguish brands at the same level as

much as possible.

P&G home care: Ariel and Tide.

Deciding upon combining brand elements

from different levels

Kinds of corporate product relationships:

Single entity: FedEx

(Individual) Brand dominance: Surf, Tide

Equal dominance: Tata Indica, Tata Tavera

Mixed Dominance: Cadbury Dairy Milk, Dairy Milk Eclairs,

Cadbury 5 Star

Corporate Dominance: IBM Software solutions and IBM

Server solutions

Principle of prominence:

Relative prominence of brand elements decide which

element(s) become the primary ones and which elements

become the secondary ones.

Linking brand elements to multiple

products

Principle of Commonality: More common brand

elements products share, more stronger the linkages

between the products.

McDonalds: Chicken McNuggets, Egg McMuffin, McVeg

Sandwich.

Developing a sustainable brand architecture

Adopt strong customer focus

Avoid over branding

Establish rules and conventions and be disciplined

Create broad and robust platforms

Selectively employ sub-brands as a means of

complementing and strengthening brands

Selectively extend brands to establish new brand equity

and enhance existing brand equity.

Introducing and Naming New

Products and Brand Extensions

―Only 2 out of 10 new products are generally successful‖

ANSOFF’S MATRIX

Brand Extension Kinds Terminology:

Brand Extension: Same brand name but new product, new variant (Ponds cold cream New, Ponds body lotion)

Sub brand: New brand name combined with existing brand name (Horlicks Nutribar)

Family brand: Parent brand associated with multiple brand extensions (Samsung)

Kinds:

Line Extension: Different flavor / ingredient / variety / form / size

Rin liquid detergent, Lenovo Think Pad X series (Tablet PCs)

Brand Extension: Same brand name but different product category

Samsung Mobiles, TVs now into Laptops

Forms of brand extension

Same product in different form (Rin liquid detergent)

Introduce products that contain the brand‘s distinctiveness

(taste, ingredient or component) (Dairy milk Éclairs)

Introduce companion products for the brand (Gillette shaving

cream to accompany Gillette Razors)

Introduce products that capitalize firm‘s perceived expertise

(Xerox DocuMate Scanners)

Introduce products that reflect the brand‘s distinctive benefits

(Dettol soap on the based upon expertise of Dettol Sanitizer)

Introduce products that capitalize the prestige of the brand

(Park Avenue deo capitalising on Park Avenue Clothing line)

Advantages of extensions

Facilitate new product acceptance

By improving brand image of the extension

By becoming a risk reducer (perceived risk)

By increasing the probability of gaining distribution and trial

By increasing efficiency of promotional expenditure

Reducing the cost of introductory and follow-up marketing

programs

By avoiding the cost of developing a new brand

By allowing for packaging and labeling efficiencies

By permitting variety seeking to consumers

(Suave: You don‘t have to spend a lot to get a lot)

Provide feedback benefits to the parent brand

Clarify brand meaning

What does Bata mean?

What does Lo‘real mean?

What does ICFAI mean?

Enhance parent brand image

Think pad Lenovo consumer electronics

Bring new consumers

Permit subsequent extensions

Reliance rage!

Disadvantages of brand extensions

Confusion

Consumers willing to sample when there were 6 flavors . than when there were 24

Retailer resistance

100 flavors of campbell soup

Can hurt parent brand image (Audi problem)

Extensions cannibalize the parent brand (Diet coke)

Diminish identification with any category (Wipro)

Can hurt the image of parent brand (Miller Lite hurts Miller High Life)

How consumers evaluate brand extensions?

Conditions requisite for favorable extension evaluation:

Positive associations about the parent brand

At least some of this positive associations should be

evoked by brand extension (Samsung Entertainment)

Negative associations should not be transferred from

parent brand

Negative associations should not be transferred to parent

brand (Budweiser Select depletes Budlight)

Creating positive image for an extension:

Consumer related factors analysis

APPLE ________________

Salience of parent brand associations in extension

context. (Does any info pertaining to apple come to your

mind in context with extension proposed)

Favorability of parent brand associations in extension

context (Good / Bad / Neutral evaluation of such info)

Uniqueness of parent brand associations in extension

context (Does any info give rise to competitive

advantage?)

Contributing to Parent Brand Equity

To contribute to parent brand equity, extension must strengthen favorable and unique associations with parent brand.

Evaluating the effects of extension on parent brand:

Compellingness of evidence about the benefit associations in extension context

To what extent consumers see performance in one product category as predictive of performance in other category (relevance)

Consistence of extension evidence

Strength of associations held about parent brand

Evaluating brand extension opportunities

Identify possible extension candidates

Evaluate the potential of extension candidate (point of

parity with parent brand BIC, competition analysis A&H)

Design marketing programs to launch extensions (Kodak

ultra life YR)

Evaluate the effects of extension on parent brand equity

Vertical Brand Extensions

Brand is extended to premium segments or value

segments

Upward extension improves brand image

Down ward extension should target value segment but

should not carry forward negative associations to the

parent brand

Advantage of upward extension

Improves brand image

Premium brand brings with it positive associations

DISADVANTAGES

Confuse customers with respect to price point

Downward extension might harm parent brand

Cannibalization of parent brand

Extension guidelines based upon

ACADEMIC RESEARCH

Recipe for a successful brand extension:

Parent brand should have favorable brand association

Consumers should perceive fit between pb and ext

Enough pops between pb and ext

Kinds of fit:

Attributes / Benefit based fit

Non product related attributes based fit

Brand Concept: Unique associations that arise from particular

combination of attributes, benefits and marketing efforts.

Match the following

LHS

a) Rolex

b)Timex

RHS

c) Stop watches, batteries and Calculators

d) Grand father clocks, Bracelets and Rings

Fit may be perceived based upon manufacturing commonalities or situational complementarities

Ex: HONDA Cars, Lawn movers M____s

Colgate tooth paste Tooth brush

High quality brands can stretch further than other brands

Brand that consumers see as prototypical for a product category can be difficult to extend outside the category

Example Xerox

Concrete attribute associations tend to be more difficult to extend than abstract benefit based associations

Consumers may transfer associations that are positive in

product class context but become negative in extension

context

Campbell sauce PREGO

It can be difficult to extend into a product class that

consumers see as easy to make

Successful extension helps brand to extend even further

Example: Reliance

An unsuccessful extension doesn‘t prevent a firm from

backtracking and introducing more similar extensions

Example: Kellogs Corn flakes Biscuits

Vertical extensions require sub branding strategies

Example: Court yard Mariot Marquis

Effective advertising strategy for extension is one that

emphasizes information about the extension than

reminding about parent brand.

Volkswagen’s IROC

What‘s a Sport‘s Coupe

Has closed body

Is performance car

Generally a small car

SCIROCCO

What are the positioning led reasons behind introduction

of IROC

What were the conducive market factors which enabled

the company to consider introducing IROC

What is the rationale behind naming Scirocco latest

variant as IROC

Can you identify measures taken up by VW to ensure

success of IROC

Managing Brands Over Time

Managing Brands Over Time

1. Reinforce brands: How to reinforce the core brand

associations of the brand over time?

2. Revitalizing brands: How to revive the fallen brands which

were once stars / cash cows?

3. Adjustments to brand portfolio: How to evaluate the

change in role of brands over period of time and adjust

your brand portfolio accordingly?

Two important aspects the marketer should consider in attempt to reinforce brands:

1. Consistency of nature in communicating about the brand

2. Extent of marketing support the brand receives

Inadequate marketing support:

Case 1

Plumbers, superstores,

Internet shopping

Case 2:

Branded stores pc

GATEWAY

isp

Consumer electronics

What does consistency mean?

Consistency in price?

Consistency in attributes?

Consistency in positioning?

Case 3:

Jack Daniel’s Consistency

http://www.north.com/blog/wp-content/uploads/zoom56.jpg

Protect key sources of brand equity

Case 4:

Intel

Floating decimal problem:

Miscalculations in rare instances

Core brand associations challenged!

Case 5:

Wonder Bread

Once staple bread

Delay in marketing action

Fine tuning supporting marketing programs

Case 6:

Failure to innovate

Smith Corona type writers

BRAND CONCEPT MANAGEMENT

Brand concept: Meaning to a brand derived from its basic consumer needs

Kinds of consumer needs:

Functional needs: basic motivations (physiological and safety)

Symbolic needs: social approval or ego identification

Experiential needs: sensory pleasure

Three stage process of BCM:

1. Introductory stage: Establish brand image and position

in market place

2. Elaboration stage: Sustain the perceived superiority to

competitors

3. Fortification stage: Link the brand image to other

products in different product classes.

Case 7:

Bacardi Rum

Increasing popularity of VODKA

Non product related imagery associations

Advice: Focus on user and usage imagery.

Changes in Pepsi Tagline

Pepsi Generation

Choice of a new generation

Gotta have it

Be young. Have fun. Drink PEPSI

Generation Next

Youngistan (India)

Revitalizing brands

Return to the roots to capture lost source of brand equity

kate moss

How to revitalize the brand

Check for the evidence that values exist and were part of

brand‘s magnetism in healthier days

Use qualitative techniques to revoke those associations

and check for its strength favorability and uniqueness

Decide upon positioning options (company based,

competition based or consumer based)

Kinds of positioning strategies:

Back to basics

Reinvention

Refreshing old sources of brand equity / Create new ones:

1. Improve recognition and recall during purchase and

consumption settings

2. Improve strength favorability and uniqueness of

associations that make up brand image

Expanding brand awareness

Identify additional or new usage opportunities:

Appropriateness of using brand more frequently (Colgate)

Remainders to consumers to actually use the brand as close as possible in time to those situations (Hit)

Identify new or completely different ways to use a brand:

Arm and Hammer: Baking soda, deodorizing properties

Tums: anti-acid + calcium suppliment

Improving brand image

Reposition the brand:

Establish more compelling points of difference (Barbie)

Intergenerational influence: influence of parents purchase

behavior on children (The Hindu)

Establish point of parity on key image dimensions

Change brand elements:

Abbreviating KFC

Enter new markets:

Brand product matrix (Repeat slide)

Product 1 Product 2 Product 3 Product 4

Brand 1

Brand 2

Brand 3

Brand 4

Brand line: (row) products + category extensions (breadth)

• Longer brand lines decrease the consistency of associated brand image if all

products use same brand (Laura Ashley)

Brand portfolio: (column) set of brands that a firm offers for sale in particular

product category (depth)

• Any brand in the portfolio should not harm or decrease the equity of the others

Adjustments to Brand Portfolio

Migration Strategy: BMW 3, 5, 7 Series

Acquiring new customers:

Challenge in acquiring new consumers when the brand is strongly associated with a particular consumer group. / product category Ex: Beetle / Dove

Multiple marketing communication programs <Beetle>

Brand Extensions and Sub-branding: Jeep SUV

New Distribution outlets: Sunglasses

Retiring Brands:

Reduce the number of variants

Consolidate brands

Discontinue the brands

Case Questions

What are the reasons for failure of old Beetle?

Why was Beetle re-launched? What were the conducive

factors for re-launch of Beetle?

Which positioning strategy was adopted while re-

launching Beetle?

Discuss POPs and PODs of new Beetle with old Beetle

Why did you think consumers fell in love with Beetle

brand?

Discuss the appropriateness of new beetle segmentation?

Managing brands over geographic

boundaries and market segments

Regionalization

Having separate marketing mixes for different regions of a country

Why regionalization?

Mass markets are splintering

Availability of computerized sales data from super market scanners

Ebullience of regional media

Pitfalls of regionalization

Production costs rise

Marketing efficiency may suffer

Brands national identity may be blurred

South India Vs North India

FOOD:

Tamarind and coconut

Spicy food

CLASSICAL MUSIC

Carnatic

APPAREL

Sarees and Dhotis

More milk based products

like Paneer, butter etc

Not very spicy

Hindustani

Salwars

Demographics South vs North

Population composition

Older population

Slightly more females

Income levels:

More wealther

Family Composition

4-5 in household

Younger population

Slightly more males

Less wealthier

In some areas 7-10

Some examples of regionalization

Coke free with Haleem during Ramzan

Sambar Noodles by Maggi

Cartoon Network / NGC programming now in Telugu

Regional film stars as brand ambassadors for national

brands.

Global marketing programs

One product formulation, one package design, one

advertising program, one pricing schedule and one

distribution plan for cost effectiveness.

Advantages:

Economics of scale

Lower marketing costs

Consistency in brand image

Uniformity in marketing practices

Power and scope

Disadvantages of GMP

Difference in consumer needs, wants and usage patterns

for products

Differences in consumer response to marketing mix

elements

Price sensitivity

Social normative beliefs

Difference in brand and product development and

competitive environment

Differences in legal environment

Differences in marketing institutions

Demographic and Cultural Segments

Language problems in communication

Difficulty in collecting statistics relating to media habits

and buying behavior

A thorough analysis on cultural niche‘s required

Global Brand Strategy

Create different marketing programs to satisfy different market segments

Identify differences in consumer behavior

Adjust brand program accordingly

Brand Pyramid in Global Context

Create brand salience

Nivea: In Europe Crème, In Asia facial skin care brands

Crafting brand image

Bravia Example

Eliciting brand responses: Create proper balance and type

of emotional responses and brand feelings

Chevrolets Karvachout ad

Airtel‘s Bandhan

Cultivate resonance: Enough opportunities to buy and use

the product.

Tuborg

Global brand positioning Validity of mental map in new market?

Time is not valued in Arab countries

Arabs read from right to left

Arabs don‘t take interest on loan

Indians don‘t generally buy in bulk

Changes to be made to positioning

French people traditionally don‘t like fast food

Wine is not sophisticated but a house hold drink

French prefer buying anti-dandruff shampoos in pharmacies

Create new mental maps when ever required

Building Global CBBE

1.Understand similarities and differences in global land scape

1. DIFFERENCE: Developed vs. Developing markets:

Developed markets

more technologically advanced features,

stringent adherence to standards

better after sales service.

Developing markets

emphasis on coverage thru unorganized retail

emphasis on value for money

simplicity and efficiency

lower on diffusion on innovation hence can

command price premium

II. SIMILARITY: Life style

Western life style embraced all across the world by

youth, bro!

Standardized marketing communication can work for

youth oriented products

2. No shortcuts in building brand equity!

Kellogs headaches:

Indians don‘t prefer RTE breakfast

Asians believe only young have milk for breakfast

Brazilians don‘t eat breakfast

French have hot milk in breakfast

3. Establish marketing infrastructure

Mc Donalds exports potatoes from Russia

Donkeys are used to distribute Coke in Ladakh

Pepsi lost marketshare in Germany because it alienated

to major retailers: Tengelmann, Asko

4. Embrace Integrated Marketing Communications

Take charge of channels that speak to wider geographies but target same demographics.

Ex: Star TV in ASIA

SKY TV in Common Wealth Countries

MTV speaks to youth world wide

Use un-conventional channels when required

Ex: Tupper ware distribution is built around kitty parties

Colgate – Pomolive used Video vans in rural areas to

build awareness about the brand.

5. Cultivate brand partnerships

Ex: Lipton partnered with Pepsi Co.

Alternative ways to enter global market:

1. Export the brand to new market

2. Acquiring existing brand sold in new market but not

owned by the firm

3. By creating brand alliance with other firm

6. Balance standardization and customization

Which products shouldn‘t be standardized:

Ones that are strongly associated with culture of the

country

Food, entertainment

Which products should be standardized:

Functional, fashion, b2b, up class, products positioned on

COO.

7. Balance global and local control

Three approaches:

Centralization at head quarters

Decentralization at local markets

Mix of both

8. Establish operable guidelines

Deploy brand charters or code books

Practice internal branding

9. Implement global brand equity measurement system

Track the growth of the brand across countries

10. Use brand elements

All pototo chips which Pepsi owns are marketed under

LAYS

Strategy Terms

Brands &

Advertising

can be

globalized or

localized

Products & Services

can be standardized or customized

Product Adaptation

STANDARDIZE

Brand name

Product positioning

Warranties

Packaging

Advertising theme

CUSTOMIZE

Distribution

Personal selling

Pricing

Media selection

Standardize or Customize?

No one product for every country

Expensive to produce variety

Global branding, local usage

―Think global, act local‖ optimizes brand and product

adaptation

When is Product Standardization Best?

In markets with similar economies

If segments are customers, not countries

When lifestyles are similar

For industrial and hi-tech products

With centralized authority

Globalization & Standardization Criteria

Industry/Product

Category Factors

Company

competitive factors

Global/

standardized

Local/

customized

Cultural

Factors

Attitudes toward

foreign images

Matrix of Strategies

Standardized product

Localized communication

Levis Jeans, Coca Cola

Customized Product

Localized communication

Nestle Chocolate,

McDonald’s

Worldwide standardized

product and global

communication

Mont blanc pens, adidas

Customized product

Global communication

Dell

Qualities of Multi-Cultural

Advertisements

Recognize the culture of the category

Reflect the culture of the brand

Respect the culture of the consumer

Pricing

Similar (at par with exchange rates)

Based on PPP

Different (based on diffusion on Innovation)

Dell

India

Dell

US

CLOSING OBSERVATIONS

What makes up the differential response?

Strength of brand associations: How deep the person

thinks about a brand: relevence + consistency

Favorability of associations: Favorability of associations will

change according to context some times along with time

Uniqueness: Provide meaningful reasons as to why the

consumers should buy the product.

Determinants of brand knowledge

structures

Depth of brand awareness: recognition and recall

Breadth of brand awareness: no. of purchase situations in which brand comes into mind

Strong brand associations: relevant and consistent information fed over time

Favorable brand associations: connote distinct benefits which consumer desires

Unique brand associations: Negate competitive points of difference and establish category points of parity along with Points of difference.

Outcomes of brand equity

Loyalty

Less vulnerability to competitive actions

Less vulnerability to marketing crisis

Larger margins

Inelastic response to price increase

Elastic response to price decrease

Greater trade cooperation and support

Increase in marketing communication effectiveness

Possible licensing opportunities

Additional brand extension opportunities

Tactical Guidelines:

Design and Delivery of brand elements:

Complementarity: Short comings of one brand element

should be over come by other brand element

EX: Lipton Ice Tea

Consistency: All brand elements should be consistent upon

positioning communication of the brand.

Measuring Brand Equity

Based upon sources of brand knowledge measurement:

Qualitative research

Outcomes of brand equity: Quantitative research

Implementation of brand equity

measurement system:

Build brand charter

Have brand inventories: how brand is marketed and brand

exploratory: what consumers are thinking about the

brand

Conduct consumer tracking studies on routine basis

Assemble tracking survey results into report and

distribute it to members

Establish a person or department to oversee the

implementation of the brand equity charter and

recommendations.

What maketh a strong brand?

Make products that reinforce brand meaning

Position the products properly

Provide superior delivery of desired benefits

Employ full range of complementary brand elements

Measure consumer‘s perception of value and develop pricing strategy accordingly

Establish credibility and appropriate brand personality and imagery

Maintain innovation and relevance for the brand

Strategically design and implement brand portfolio

Implement brand equity management system to ensure marketing actions properly reflect brand equity concept

7 deadly sins of brand management

Failure to fully understand the meaning of the brand

Failure to live up to brand promise

Failure to adequately support the brand

Failure to be patient with the brand

Failure to adequately control the brand

Failure to balance consistency and change in the brand

Failure to understand the complexity of brand

measurement and management

Guidelines for B2B products

Adopt corporate or family branding strategy instead of

promoting at individual brand level

Build more product related associations

Emphasis on customer service

Confront with your prospective buyer face to face

Leverage equity of other companies that are customers

Develop tailored marketing and branding strategies for

influential decision makers in the system

High Tech Products

Characterstics:

Change rapidly

Continuous innovation

Have shorter life cycles

Tactics:

Establish rich brand image but not basis of product attributes

Create corporate credibility associations

Create secondary associations of quality (third party endorsements, leading consumer magazines)

Maintain array of family brands

Retailers

Brand individual departments (Sams Club)

Exploit manufacturer‘s brand equity

Establish equity in selection, purchase and delivery of

product offerings

Create multichannel shopping experiences

Small Business

Emphasize on building one or two brand associations

Focus the marketing program on one or two brand

associations

Employ a well integrated set of brand elements

Design creative brand building campaigns

Leverage as many secondary associations as possible

Online

Keep name simple

Generate strong customer pull

Choose selective brand positions

Maximize relationship marketing

Future branding priorities

Muti-dimensional brand elements

Please find us on face book, tweet us on twitter

Better brand equity measurement system

Managing brand equity: Internal brand management,

external brand management, bottom up brand

management and top down brand management

Adjust tradeoffs decisively

RELEVANCE SIMPLICITY AND HUMANITY WILL

DISTINGUISH BRANDS IN FUTURE

My take on Branding

Every product connotes a bundle of benefits.

Branding is all about promising and communicating those

benefits

Brand management is systematic effort to exemplify,

communicate and ensuring proper channelization of

benefits from marketer to consumer

Key role of brand manager is to identify salient benefits

and ensure that brand elements effectively communicate

those salient benefits

THANK YOU CLASS

Gosh, I have no farewell speech ready!

All I have to say is:

― Enough of Kotler, Keller and Aaker,

Now go catch up with friends, volleyball nets and cricket bets‖

Reach me at:

[email protected]

Mob: 8143344893

STRATEGIC BRAND MANAGEMENT - Google Groups

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