Strategic Brand Management

What is a brand ?
A Brand is a name , term , sign ,symbol or
design or a combination of them , intended to
identify the goods or services of one seller or
a group of sellers and to differentiate then
from those of competitors.
Therefore a Brand is essentially a sellers
promise to consistently deliver a set of
features , benefits and services to the buyers.
 Difference between Product & Brand
In marketing, product is anything that can be offered to the market
that may satisfy the need, want, and demand of a certain individual
or market. It is also called as goods or service. Product is more than
just a material object.

On the other hand, brand is a symbolic manifestation of all the

information connected with a company, product, or service.

Note : A brand name can be used across several products product

lines product categories
 What is a brand?-What does it
convey?
A brand can convey up-to 6 levels of meaning:
1. Attributes -A brand first brings to mind certain product
attributes(advantages)
2. Benefits- Customers do not buy attributes, they buy
benefits.(benefits)
3. Values -A brand also says something about the producers
& buyers' values.
4. Culture-The brand may represent a certain culture. The
Mercedes represents German culture: organized, efficient,
high quality.
5. Personality -A brand also projects a personality
6. User (association ) -The brand suggests the kind of
consumer who buys or uses the product.
Note :

Perhaps the most distinctive skill of professional

marketers is their ability to :
create , maintain, Enhance & protect

brands !!!
 Why Brand .. ?
The purpose & significance
Helps Buyers.
Brand names tell the buyer something about
product quality.
Brand names also increase the shopper's
efficiency.
Brand names help call consumers' attention to
new products that might benefit them. A story
can be built around a brand.
 Why Brand .. ?
The purpose & significance
Helps Suppliers:
Systematize -The brand name makes it easier for
the supplier to process orders and track down
problems.
Protection-The supplier's brand name and
trademark provide legal protection for unique
production features that otherwise might be
copied by competitors.
Build Loyalty-Branding enables the supplier to
attract a loyal and profitable set of customers.
 Why Brand .. ?
The purpose & significance
Helps consumers and society:
Consistency in Quality- as a brand is a promise
to consistently deliver quality.
Increases innovation- for protection from
competition which leads to a larger choice
More & precise information -Branding helps
shoppers because it provides much more
information about products and where to find
them.
Why Brand? .
Why Not Brand..?
Benefits of product branding
Image is everything
Andre Agassi
 Brand Image
The term "brand image" gained popularity as evidence
began to grow that the feelings and images associated
with a brand were powerful purchase influencers,
though brand recognition, recall and brand identity.
It is based on the proposition that consumers buy not
only a product (commodity), but also the image
associations of the product, such as power, wealth,
sophistication, and most importantly identification and
association with other users of the brand.
Brand images are usually evoked by asking consumers
the first words/images that come to their mind when a
certain brand is mentioned
 Brand identity
Brand identity stems from an organization,
i.e., an organization is responsible for creating
a distinguished product with unique
characteristics.
Brand identity includes following elements -
Brand vision, brand culture, positioning,
personality, relationships, and presentations
 Brand identity
Brand identity is a bundle of mental and
functional associations with the brand.
Associations are not reasons-to-buy but
provide familiarity and differentiation thats
not replicable.
 Brand Equity

The differential effect that brand

knowledge has on consumer
response to the
marketing of that brand.

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 Brand Equity
Brand equity refers to the marketing effects or
outcomes that accrue to a product with its
brand name compared with those that would
accrue if the same product did not have the
brand name
 Equity Measurement
There are many ways to measure a brand:
Firm Level: Firm level approaches measure the brand as a
financial asset. Market capitalization - and then
subtract tangible assets and "measurable" intangible
assets- the residual would be the brand equity.
Product Level: The classic product level brand
measurement example is to compare the price of a no-
name or private label product to an "equivalent"
branded product. The difference in price, assuming all
things equal, is due to the brand
 Equity Measurement
Consumer Level: This approach seeks to map
the mind of the consumer to find out what
associations with the brand the consumer has.
This approach seeks to measure the
awareness (recall and recognition) and brand
image (the overall associations that the brand
has
 Branding

Endowing products and services

with the power of a brand.

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Branding strategy
 Devising Branding strategy
How to brand a new product is essentially
critical . There are 3 main choices :
1. It can use new brand elements for the new
product
2. It can apply existing brand elements
3. Combination of new & existing elements
 Brand extension- one of the most
common
Brand extension when a firm uses an
established brand for the new product
When the marketer combines a new brand
with an existing brand , this sort of a brand
extension can also be called as sub-brand
 Brand extension

Brand
extension

Line Category
extension extension
 Brand extension
They fall in 2 general categories :
Line extension- the parent brand covers a new
product within a product category, It currently
serves , such as with new flavors , colors , sizes ,
ingredients etc. eg: HULs lifebuoy has lifebuoy
care , lifebuoy total / deofresh etc
Category extension the parent brand is used to
enter a different category from the one it
currently serves. Eg: Honda has used its name in
cars , motorbikes, marine engines etc. their ad
you can fix six Hondas in 2 car garages Tata.
 Individual Names

Blanket family name

Branding (strategy )
decisions

Separate family names

Corporate name
combined with
individual product
name
 Branding ( Strategy) Decisions
1. Individual Names : P&G has several individual brands
in different product categories . Like Vicks(health
care), Whisper( hygiene), Arial & tide ( Fabric care)
Head & Shoulders & Pantene( hair care).
The companys reputation is not tied to the product if
the product fails , it does not hurt the company image
or brand.
Can be done for different products in different quality
lines eg: Kingfisher acquired air Deccan & rebranded it
as Simplify Deccan & retained Kingfishers brand
equity
Also called as House of Brands
 Branding ( Strategy) Decisions
Blanket family name : the blanket family name is
used across product categories.eg; Tata Salt , Tata
Nano , Tata Tea etc
The development cost is low no expenditure on
recognition building
Corporate image associations of innovativeness ,
trustworthiness, expertise can positively
influence customer evaluation/decision
Also called as Branded House
 Branding ( Strategy) Decisions
Separate family names for all products ; The
Aditya Birla group uses the name Hindalco
for aluminum: Ultratech for cement Grasim
& Graviera for suiting. Also Vedanta group
sesa goa etc
Each is building its own identity ( as against
image ) to establish itself in their respective
industries
 Branding ( Strategy) Decisions
Corporate name combined with individual
product name: eg: Kelloggs Rice Krispies :
Kelloggs corn flakes etc , also Sony & HP

Here although it is not a family brand it has

high Brand identity that it can case-in on
 Designing a Branding strategy

No. of levels of brand hierarchy

Desired awareness & image at each hierarchy
level
Decide on which products are to be introduced
Combining brand elements from different levels
Linking brand elements to multiple products
Developing an architecture
Adjustments to the marketing Program
 No. of levels of brand hierarchy
Principle of simplicity Employ as few levels as
possible

Principle of clarity Logic & relationship of all

brand elements employed must be obvious &
transparent . Points of differentiation should be
clear. It could help in
i. Retail interest generation
ii. Organize selling effort
iii. Cater to fragmented customer segments / tastes
 Desired awareness & image at each
hierarchy level
Principle of relevance Create abstract
associations that are relevant across as many
individual items as possible

Principle of differentiation Differential

individual items & brands . Mostly in the case
of individual brands
 Decide on which products are to be
introduced
Principle of growth Invest in market
penetration or expansion v/s product
development, depending on ROI opportunities

Principle of survival- Brand extensions must

achieve brand equity in their categories

Principle of synergy brand extensions

should increase the equity of the parent brand
 Combining brand elements from
different levels
Principle of prominence The relative
prominence of brand elements affect perceptions
of product distance and the image created for the
product .
Single entity- one product line offered . The
image of the product & entity is one.eg.Federal
express
Brand dominance strategic decision not to
relate brand and corporate name. eg. Philip
Morris & Malboro
 Combining brand elements from
different levels
Equal dominance links brand name with
corporate name but build a distinct image eg. GM
with its different car names Buick LeSabre ,
Buick Electra: Also Westside etc
Mixed Dominance sometimes individual
product names are dominant , sometimes the
corporate name. eg. Bosch uses its corporate
name on some products but not on some (like
Blaupunkt). Also redwood hotels : ITC hotels etc
Corporate dominance- corporate name is
supreme & applied in all product lines. Eg. Xerox
 Linking brand elements to multiple
products

Principle of commonality The more

common elements products share the
stronger the link
Its best to use the brand element as is
 Developing an architecture

Brand architecture is the structure of brands

within an entity . The way the brands in a
companys portfolio are related to, and
differentiated from, one another.
Brand architecture may be defined as an
integrated process of brand building through
establishing brand relationships among
branding options in the competitive
environment
 Developing an architecture

In order to understand if the over-all architecture

is good , the following questions need to be asked
after carefully examining the brand portfolio &
hierarchy-
Do our brands have defined roles ?
Do brands collectively maximize coverage &
minimize overlap?
For the hierarchy does any brand have extension
potential?.. Within or outside its category ..
Adjustments to the marketing Program

Product design , pricing policies , distribution

strategies and marketing & communication
strategies/plans depend on the role of the
brand and its independencies with other
brands
The broader the category-gap the greater the
independence
STRATEGIES ACROSS P.L.C STAGES
PLC
PLC
PLC for an Industry
 Importance of PLC

Modify , alter , adjust ,change - Strategies

Time of entry of Fresh ( new ) product
launches
Need to extend stretch life cycle
Extend at which particular stage
Strategies through Life cycle stages
Introduction stage
Rapid skimming strategy the big-push method.
High price , high promotional spends largely
when customer awareness is low & firm requires
quick profits & potential competition is high
Slow skimming High price , low promotion
largely when potential customers are aware &
willing to pay . Also when potential competition
is limited
Strategies through Life cycle stages
Growth stage
Maintain the price balance with competitors
Expand network
Increase product usage multiple facilities
Entry in newer pastures ( markets)
Advertising aimed at product preference
Sub-brand for a quicker market response
Strategies through Life cycle stages
Maturity Stage
High levels of product modification
Carving niches
Pruning product lines
Repostioning
Strategies through Life cycle stages
Decline Stage

Dropping products if they do not make

economic sense
Diverting business attention on profitable ares
Optimize investments
 Brand Management - An Upper View
What is Brand Equity A discussion on Equity
Models
Building Brand Equity Choosing &
Developing Brand elements
Measuring Brand Equity Brand Value Chain
A discussion on distinguishing Brand
Valuation from Brand Equity
Managing Brand Equity Making Action to
Reinforce & Revitalize. Positioning
 Brand positioning
Brand positioning refers to target
consumers reason to buy your brand in
preference to others

In marketing, positioning has come to mean

the process by which marketers try to create
an image or identity in the minds of their
target market for its product, brand, or
organization
 Positioning concepts
There are three types of positioning concepts:
Functional positions
Solve problems
Provide benefits to customers
Get favorable perception by investors (stock profile) and lenders
Symbolic positions
Self-image enhancement
Ego identification
Belongingness and social meaningfulness
Affective fulfillment
Experiential positions
Provide sensory stimulation
Provide cognitive stimulation

NOTE: this is also called as Brand Concept Management (BCM)

 Measuring the positioning
Positioning is facilitated by a graphical
technique called perceptual mapping, various
survey techniques, and statistical techniques
like multi dimensional scaling, factor analysis,
conjoint analysis, and logit analysis.
Measuring the positioning- perceptual
mapping
Perceptual mapping
is a graphics
technique used by
asset marketers that
attempts to visually
display the
perceptions of
customers or
potential customers.
Typically the position
of a product, product
line, brand, or
company is displayed
relative to their
competition. E.g car
brands
perceptual mapping
 brand differentiation
The concept of Brand differentiation has become
very popular in the recent years. The brands want
to remain differentiated from other brands and
there are various ways they can achieve this aim.
The brand differentiation is basically brought by
positioning of brands. Positioning is the place
which the brand makes in the minds of the
customers or in market.
Brand differentiation can also be achieved by
unique selling position of the brand and for
increasing the brand value and brand equity.
 Differentiators
Price: Many brands attempt to Differentiate by being
the lowest priced provider. This is seldom a good
Differentiator because there's always someone else
who will try competing with you on price
Quality: When Quality alone is thought to be a
Differentiator you are not on strong footing. Others can
offer Quality as well. Also, Quality is hard to define
Customer Service: Here is another attribute that has
been adopted as a Differentiator which no longer has
the same power it once did because almost everyone is
providing it to some extent or another.
 Differentiators
Breadth of Line: Advertising that Lowes carries 24
brands of hammers does not motivate people to switch
from Home Depot. Breadth of Line can be a
convenience but it won't Differentiate
Leadership: This Differentiator must be earned. The
Leadership role is bestowed by the market, and once
the mantel is assumed, the brand can exploit its
position.
First in Category: By being the first to introduce a
product in a new category, your brand is the leader
unless you lose momentum
Heritage: Serving a market for a long time
 Differentiators
Product Superiority: Although Quality may be a part of
the superiority mix, it is usually performance that is
claimed under Product Superiority.
Brand "Owns" an Attribute: Ivory soap owns "It
Floats". Volvo owns "Safety".
Being the Newest: Here a brand will take the
precarious route of eternal product development and
introductions. A good example of a company that has
excelled as an innovator is Intel. They seem always to
be one step ahead, even obsoleting their own products
to be the first with the fastes
 Differentiating strategies
To avoid commodity trap
Competitive advantage : leverageable
advantages a company can use as a
springboard to new advantages
The competitive advantage should be seen as
a customer advantage e.g is speed is not a
priority then it does not result in a customer
advantage
 Examples of differentiation
Natures basket by Godrej Agrovet ltd.- high
end customers

Himalaya Drugs ayurvedic ingrediences

based on ancient traditional knowledge

Swatch color & youthful fashion

Brand Equity Models

Brand Asset Valuator

Aaker Model
BRANDZ
Brand Resonance

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Brand Asset Valuator
 Brand Asset Valuator
Differentiation degree to which a brand is seen
as different from the rest
Energy- Brands ability to meet future consumer
needs & attract new customers.
Relevance size of the brands franchise , but not
necessarily its profitability
Esteem- how well it is regarded & respected &
liked
Knowledge How familiar & intimate consumers
are with the brand
BAV
BAV Power Grid
 BrandZ
BrandZ is a brand equity database. It holds data from
over 650,000 consumers and professionals across 31
countries, comparing over 23,000 brands. The
database is used to estimate brand valuations, and
each year since 2006, has been used to generate a list
of the top 100 global brands.[
According to BrandZ, "Brand value is the financial value
of a brand defined as the sum of all earnings that a
brand is expected to generate
Marketing consultants Millward Brown & WPP have
developed the BRANDZ model of Brand strength at the
heart of it is the BrandDynamics pyramid
Aakers Model (assets & liabilities )
 Aakers Model
Former UC-Berkeley s Marketing professor David
Aaker views brand equity as the brand awareness
, brand loyalty & brand association that combine
to add to or subtract from the value provided by
a product or service.
He belives that a brand has a) core identity
elements & b) extended identity elements
Eg- Restaurant best in Fish food core identity
element
Informal environment & a relaxed lounge setting
extended elements
Brand Resonance
Brand Resonance
 Brand Resonance
Brand salience - How often and how easily
customers think of the brand under various
purchase or consumption circumstances
Brand performance how much/well does a
product or service meets customers functional
needs
Brand imagery- how does the brand attempt
to meet customers psychological & social
needs
 Brand Resonance
Brand judgments customers personal
opinions & evaluations
Brand feelings- are the customers emotional
responses and reactions in response to a
brand.
Brand Resonance the relationship customers
have with the brand does the customer feel
in sync with the brand. The objective is to
create actively loyal customers.
Equity Valuation