The document discusses key concepts in branding including brand name, brand mark, brand equity, and master brands. It provides examples of well-known master brands like Band-Aid and Crayola. The benefits of branding are outlined as distinguishing products, aiding repeat and new product sales through brand loyalty and image. Brand equity is defined and factors that contribute to brand equity and loyalty are explored. Strategies for branding like line extensions, brand extensions, and cobraning are also covered.
1. To Brand or Not to
Brand?
Concepts and Rules for Building the
Killer Brand
Module 4
2. Some Important Concepts…
• Brand Name: The part of a brand that can be
spoken including letters, words and numbers.
• Brand Mark: The elements of a brand that cannot
be spoken
• Brand Equity: The value of company and brands
names.
• Master Brand: A brand so dominant that it comes
to mind immediately when a product category,
use, attributes or benefit is mentioned.
3. A look at Master Brands
Baking Soda
Baking Soda Arm & Hammer
Arm & Hammer
Adhesive Bandages
Adhesive Bandages Band-Aid
Band-Aid
Rum
Rum Bacardi
Bacardi
Gelatin
Gelatin Jell-O
Jell-O
Soup
Soup Campbell’s
Campbell’s
Cream Cheese
Cream Cheese Philadelphia
Philadelphia
Crayons
Crayons Crayola
Crayola
Petroleum Jelly
Petroleum Jelly Vaseline
Vaseline
7. So what is it exactly…
• Attributes, benefits, values, culture,
personality and user
• Research techniques: word
associations, personifying the brand,
laddering up the brand essence
8. Benefits of Branding
• Branding distinguishes products from
competition
• Product Identification
• Aids in repeat sales
• Aids in new product sales
• Aids in attracting loyal customers and
segments
• It is the image, baby!
9. What is Brand Equity??
A set of assets and
liabilities linked to a brand’s name
and symbol that add or subtract
from the value provided by a
product or service to a firm and/ or
that firm’s customers.
Aaker, David A. (1991), Managing Brand Equity: Capitalizing on
the Value of a Brand Name, The Free Press, New York
10. ss
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A w
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i t i v e Equity ed
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Associations For more see:
Aaker, David A. (1995), Strategic
Market Management,
4th ed., Wiley, NY
11. The World’s 10 Most Valuable
Brands – Interbrand 8/5/02
Rank Brand Value (billions)
1 Coca Cola $69.6
2 Microsoft $64.1
3 IBM $51.2
4 GE $41.3
5 Intel $30.9
6 Nokia $30
7 Disney $29.3
8 McDonald’s $26.4
9 Marlboro $24.2
10 Mercedes $21
12.
13. Benefits of Brand Equity
• Leverage when bargaining with distributors
and retailers
• Charge higher price for product
• Launch extensions
• Some defense against price wars
• Brand valuation
15. Branding Decisions
• Brand or not to brand?
• Brand sponsor decision
• Brand name decision
• Brand strategy decision
• Brand repositioning decision
16. Branding Strategies
Brand
Brand No Brand
No Brand
Manufacturer’s
Manufacturer’s Private Brand
Private Brand
Brand
Brand
Individual
Individual Family
Family Combi-
Combi- Individual
Individual Family
Family Combi-
Combi-
Brand
Brand Brand
Brand nation
nation Brand
Brand Brand
Brand nation
nation
17. Brand Strategy Decisions
• Line extensions – • Multibrands –
existing brand to flanker brands
new sizes, forms, • Cobranding –
flavors etc. combination of two
• Brand extensions – or more brands
brand names • New brands
extended to new
product categories
19. So How do You Do This??
Some tips from “Brand Warfare:
10 Rules for Building the Killer
Brand” by David D’Alessandro
20. R1: It’s The Brand, Stupid
• Brand arrogance was once
commonplace
– Brands that were once invincible are shadows of
their former selves (ABC, CBS, NBC)
• The consumer revolution
– Consumer attitudes changed – don’t trust “big”
– Cheaper to enter business and create brands
(amazon - $300,000)
– Information access for consumers
• When the consumer rules, arrogance
kills
– The power of choice & importance of
differentiation
21. R2: Co dependency can be
Beautiful…
• People pay attention to brands – they
need them
• Brands save time
– Think OTC drugs
• Brands project the right image
– “No one can fault you for buying an IBM”
• Brands provide an identity
– Brand communities (Harley; Ebay); comfort
levels
22. R3: A Great Brand Message is Like a
Bucking Bronco – once you are on, don’t
let go…
• Brand New? Who is it going to be. Brand
Old? What is it and where should it go.
Which is easier??
• Its not the idea that rules, it’s the execution
• Brand message has to speak to consumers
• Keep it relevant and consistent
23. R4: If you want Great advertising, be
prepared to fight for it
• Beware of flatterers
• It is not necessarily good advertising that the
client is after
• Be memorable
• Don’t change the advertising because you
are bored with it.
24. R5: When it comes to sponsorships,
there is a sucker born every 30
seconds
• Get in for the right reasons
• Understand the players
– The event organizer, TV Networks, the
athletes and their entourages
• Look for a balance of power
25. R6: Don’t Confuse Sponsorship
with a Spectator Sport
• Use the sponsorship every day in every
way
• Set the right expectations
• Make sure you achieve something
measurable and real
26. R7: Do not allow scandal to destroy
in 30 days a brand that took 100
years to build
• Brand is destiny
• Do not allow your enemies to define you
• Do not stall. Do not allow the lawyers to
stall.
• You can run – but you cannot hide