Marketing Management II

1. Branding
Course: MBA
Subject: MM II
Unit: 3

3. Views on Brands
“A name, logo, or symbol that
evokes in customers a perception of
added value for which they will pay
a premium price.”
John Torella, J.C. Winters Group, Toronto
“A product with a personality.”
Chris Staples, Rethink, Vancouver
Marketing communications in any form has an impact
on customers’perceptions.

4. What is a brand ?
Branding is a combined effort of the company which is projected to
the consumer.
Company
Brand
Consumer
Marketing
Design

5. (1) Products and services have become so alike that they fail to
distinguish themselves by their quality, efficacy, reliability, assurance
and care. Brands add emotion and trust to these products and services,
thus providing clues that simplify consumers’ choice.
(2) These added emotions and trust help create a relationship between
brands and consumers, which ensures consumers’ loyalty to the brands.
(3) Brands create aspirational lifestyles based on these consumer
relationships. Associating oneself with a brand transfers these lifestyles
onto consumers.
(4) The branded lifestyles extol values over and above the brands’
product or service category that allow the brands to be extended into
other product and service categories. Thus saving companies the
trouble and costs of developing new brands, while entering new
lucrative markets.
(5) The combination of emotions, relationships, lifestyles and values
allows brand owners to charge a price premium for their products and
services, which otherwise are barely distinguishable from generics.
What is a brand ?

6. Brand Loyalty
“The degree of consumer attachment
to a brand.”
Recognition
Preference
Insistence
Awareness of name,
benefit and package
Is useful, consumer will
buy if available…evoked
set
Will search for; must have

7. The Role of Brands
Significance of Brands..
• Identify the maker
• Simplify product handling
• Organize accounting
• Signify quality
• Create barriers to entry
• Serve as a competitive advantage
• Secure price premium

8. What is Branding?
• Branding is endowing products
and services with the power of
the brand

9. What is Brand Equity?
• Brand equity is the added value endowed
on products and services, which may be
reflected in the way consumers, think,
feel and act with respect to the brand.

10. Advantages of Strong Brand
Improved perceptions of product
Greater loyalty
Less vulnerability to competitive marketing actions
Less vulnerability to crises
Larger margins
More inelastic
Greater trade cooperation
Increase marketing communications effectiveness
Possible licensing opportunities

11. What is a Brand Promise?
• A brand promise is the marketer’s
vision of what the brand must be and
do for consumers

12. Company
Product A
Product B
Product Packaging
Websites
Advertisements
A brand is a promise. A promise to achieve certain results, deliver a
certain experience, or act in a certain way. A promise that is conveyed
by everything people see, hear, touch, taste or smell about your
business.
logo
Integrity of Brand

14. Drivers of Brand Equity
• Brand elements
• Marketing Activities
• Meaning transference

16. •Brand Recognition / Equity
•Brand Preference / Loyalty
•Brand Insistence
__________________
•Brand Awareness
•Brand Association
Page 220

17. • Brand Recognition / Equity - awareness, loyalty, quality,
emotion
• Brand Preference / Loyalty - the degree to which
customers are committed to further purchases eg. I will
always buy Reebok (Brand Insistence)
________________________________________________
• Brand Awareness -your product is the first that comes to
mind in a certain product category
eg. Snapple ice tea, jeans-Levi’s, walkman - SONY
• Brand Association - the link to favourable images,
celebrities, geographic regions
ie. Red Strip - Jamaica, VW - Germany, Screech - NFLD
Bailey’s - Eire

18. • Brand Awareness -your product is the first
that comes to mind in a certain product
category
eg. Snapple ice tea, jeans-Levi’s, walkman -
SONY
Not in the text

19. • Brand Association - the link to favourable
images, celebrities, geographic regions
ie. Red Strip - Jamaica, VW - Germany,
Screech - NFLD
Bailey’s - Eire
• Paul Hogan - Subaru
• James Earl Jones (voice of CNN)
• Chihuahua - Taco Bell
• Jordan - Nike
• Julia Louis Dryfuss - Nice and Easy
• Candice Bergen - Sprint Canada

20. Brand Association - the link to favourable
images, celebrities, geographic regions
• white diamonds - liz taylor
• BMW Z3 - 007
• roots hats - olympics
• fubu - urban trend / hip hop
• right guard - Sir Charles
• Ru Paul - MAC Cosmetics
• Seinfeld - AMEX

21. • Brand Awareness -your product is the first that
comes to mind in a certain product category
eg. ice tea = Snapple, running shoes = Nike

23. The Nike’s case
• Reflects the popularity of a well-known TM
• The “Swoosh” is the well known symbol of Nike
• Originally Nike’s logo included also the shoemaker’s name
• At the end of the nineties, the Nike’s name disappeared
• The swoosh remained as the main identification symbol of
the shoemaker
• Today there is no need to include the brand into this logo
since the recognition of a simple swoosh automatically
brings our attention to Nike

24. The “Swoosh”

25. Brand Challenges…..

26. Challenge of Cost

27. Challenge of consistency and
clutter
• Consistency: Everyone in the company has an
impact on the brand
• Clutter: Standing out and forming association
is difficult

28. CHALLENGES
• Savvy Customers
• Mature markets ( desktop PC’s )
• Difficulty in differentiation
• Short term performance orientation
• New communication options
• Brand proliferation

29. Media Fragmentation
• Cost
• Clutter
• Fragmentation
• Technology

30. Increased Competition
• Globalization
• Low priced competition
• Brand extensions
• Deregulation

31. Branding Strategy
• Both Tiger Woods
and Nike can be
considered brands

32. Brand Strategy
• Brand Positioning
• Brand Name Selection
• Brand Sponsorship
• Brand Development
• Three levels of
positioning:
– Product attributes
• Least effective
– Benefits
– Beliefs and values
• Taps into emotions
Key Decisions

33. Brand Positioning
• Brand Positioning: marketers need to position their brands clearly in
target customers’ minds
• Can position under product attributes
– The least desirable level for brand positioning because competitors can easily
copy attributes
– Customers are not necessarily interested in attributes but what those
attributes will do for them
• Can position by associating its name with a desirable benefit
• The strongest brands are positioned on strong beliefs and values
• When positioning a brand, the marketer should establish a mission for the
brand and a vision of what the brand must be and do

34. Branding Strategy

35. Product Positioned
on Emotions
MasterCard positions
its credit card based
on consumer
emotions

36. Brand Strategy
• Brand Positioning
• Brand Name
Selection
• Brand Sponsorship
• Brand Development
• Good Brand Names:
– Suggest something about the
product or its benefits
– Are easy to say, recognize and
remember
– Are distinctive
– Are extendable
– Translate well into other
languages
– Can be registered and legally
protected
Key Decisions

37. Brand Name Selection
• Desirable qualities for a brand name include:
1. It should be easy to pronounce, recognize,
and remember.
2. It should be distinctive.
3. It should suggest product’s benefits and
qualities.
4. It should be extendable.
5. It should translate easily into foreign
languages.
6. It should be capable of registration and
legal protection.

38. Boudreaux’s Butt Paste is a
real product that is used in
the treatment of diaper rash.
Evaluate this brand name
against the criteria for a
good brand name that were
previously discussed.
How does it fare? Explain.

39. Brand Strategy
• Brand Positioning
• Brand Name
Selection
• Brand Sponsorship
• Brand Development
• Manufacturer brands
• Private (store) brands
– Costly to establish and promote
– Higher profit margins
• Licensed brands
– Name and character licensing
has grown
• Co-branding
– Advantages / disadvantages
Key Decisions

40. Brand Sponsorship
• Brand Sponsorship: four sponsorship options
– Private Brands: store brand or distributor brand
– Manufacturer’s Brand: or national brand
– Licensed Brands: the brand name is licensed to
other products
– Co-Branding: when two established brand names of
different companies are used on the same product

41. Brand Strategy
• Brand Positioning
• Brand Name Selection
• Brand Sponsorship
• Brand Development
• Line extensions
– Minor changes to existing
products
• Brand extensions
– Successful brand names help
introduce new products
• Multibrands
– Multiple product entries in a
product category
• New brands
– New product category
Key Decisions

42. Brand Development
• Brand Development- 4 choices for brand development:
• Line Extensions
– Occur when a company introduces additional items in a given
product category under the same brand name, such as new flavors,
forms, colors, ingredients, or package sizes
• Brand Extension
– Involves the use of a successful brand name to launch new or
modified products in a new category—gives a new product instant
recognition and faster acceptance
• Multibrands
– Offers a way to establish different features and appeal to different
buying motives—additional brands in the same category—a
drawback is that each brand might only obtain a small portion of
market share and none may be very profitable
• New Brands
– A company may create a new brand name when it enters a new
product category for which none of the company’s current brand
names is appropriate

43. Brand rejuvenation
• Brand rejuvenation involves adding value to an existing brand by
improving product attributes and enhancing its overall appeal. It is
intended to re-focus the attention of consumers on an existing
brand. Brand rejuvenation helps overcome the consumer’s
boredom in seeing the same product on the shelves year after year.
A consumer’s psychological desire for changing is one key factor
behind brand rejuvenation.
• Quite often, we see ongoing brands appearing as; ’new’, ‘super’,
‘special’ ‘premium,’ deluxe, ‘extra strong’ and ‘fresh’,. They appear
in new shapes, new pack sizes, new containers, new colors and
flavors. Basically what happens here is an updating of brands. Corn
Products reintroduced Rex jam with pieces of fruit in it and packed
them in new containers. Cadbury’s 5 star chocolate bar received a
fill up through a new creamier and smoother version.

44. Brand Re-launch
• Relaunch Reintroducing a brand, product or service into a
specific market. The term implies that the company has
previously marketed the product but stopped marketing it. A
relaunched offering has usually been technically modified or
rebranded/repositioned

45. Brand proliferation…
• Brand proliferation is the opposite of brand extension. While in brand
extension, new items are added using an existing brand name and several
products are offered under the same brand name, in brand proliferation,
more items are brought in with new brand names. In other words, the firm
has several brands in the same product/product category. It means that
the list of independent brands swells up. For instance, Unilever has more
than 25 brands of ice creams and P&G has more than a dozen brands of
detergents.
• Brand proliferation can help expand the market as well as the company’s
market share in the category. It can also increase the company’s clout at
the retail level by offering variety. New brands also generate excitement of
the sales team of the company at the same time, however, there are also
many pitfalls in brand proliferation. More brands from a company’s stable
enhance competition in the market. It also paves the way for the
company’s brands to compete among themselves, a phenomenon known
as brand cannibalization.

46. Packaging
• How can we define Packaging?
• Kotler defines packaging as "all the activities of
designing and producing the container for a product."
Packaging can be defined as the wrapping material
around a consumer item that serves to contain,
identify, describe, protect, display, promote, and
otherwise make the product marketable and keep it
clean. Packaging is the outer wrapping of a product. It
is the intended purpose of the packaging to make a
product readily sellable as well as to protect it against
damage and prevent it from deterioration while
storing. Furthermore the packaging is often the most
relevant element of a trademark and conduces to
advertising or communication.

47. Importance of Packaging
• 1. Protection and preservation
• A basic function of package is to protect and preserve
the contents during transit from the manufacturer to
the ultimate consumer. It is the protection during
transport and distribution; From climatic effects (heat
and cold, moisture, vapour, drying atmospheres); from
hazardous substances and contaminants; and from
infestation. Protection is required against
transportation hazards spillage, dirt, ingress and egress
of moisture, insect infection, contamination by foreign
material, tampering pilferage etc. A package should
preserve the contents in 'Factory Fresh' condition
during the period of storage and transportation,
ensuring protection from bacteriological attacks,
chemical reaction etc.

48. • 2. Containment
• Most products must be contained before they
can be moved from one place to another. To
function successfully, the package must
contain the product. This containment
function of packaging makes a huge
contribution to protecting the environment. A
better packaging help to maintain the quality
of the product and reachability of the product
in the consumer's hand without spillages It
gives better image to the organisation.

49. • 3. Communication
• A major function of packaging is the communication of
the product. A package must communicate what it
sells. When international trade is involved and different
languages are spoken, the use of unambiguous, readily
understood symbols on the distribution package is
essential. It is the interest further that to get
appropriate communication to the consumer about the
product, how to use it and other utility informations.
Packaging protects the interests of consumers.
Information includes: quantity; price; inventory levels;
lot number; distribution routes; size; elapsed time
since packaging; colour; and merchandising and
premium data.

50. Labeling
• Display of information about a product on its
container, packaging, or the product itself. For
several types of consumer and industrial
products, the type and extent of information
that must be imparted by a label is governed
by the relevant safety and shipping laws.

51. Universal Product Code
• Twelve-digit barcode printed or affixed on
virtually everything sold in supermarkets or retail
stores, including books, magazines, candy, etc.,
for automatic checking-out at the cashier counter.
UPC not only identifies an item, it also provides
real time information on quantity sold, store
traffic pattern, and inventory and ordering
information. Introduced by IBM in 1973 for use in
electronic point-of-sale applications, it was
supplanted by European Article Numbering (EAN)
code in 1976.

52. Sources:-
• http://www.slideshare.net/jwayne2013/branding-ppt-16015717
• http://www.slideshare.net/muzamilquadir/branding-challenges-and-opportunities-16730942?related=1
• http://www.slideshare.net/rdhawthorne/chapter7-branding-cont
• http://www.citeman.com/2921-brand-rejuvenation-with-examples.html
• http://www.blackcoffee.com/brand-related/brand-terms/R/relaunch
• http://www.citeman.com/3193-brand-proliferation-and-the-other-strategies.html
• http://www.indianmba.com/Faculty_Column/FC337/fc337.html
• http://www.businessdictionary.com/definition/labeling.html
• http://www.businessdictionary.com/definition/Universal-Product-Code-UPC.html#ixzz3OxG9gL9y