Branding Branding

Refers to the use of an exclusive name, symbol or Refers to the use of an exclusive name, symbol or design to identify a specific product or business. It is design to identify a specific product or business. It is used to differentiate itself from similar products used to differentiate itself from similar products offered by rival firms.offered by rival firms.

Brand developmentBrand development: Is a long term product strategy : Is a long term product strategy that involves strengthening the name and image of a that involves strengthening the name and image of a brand in order to boost its sales. Spending more on brand in order to boost its sales. Spending more on product promotional activities such as advertising, product promotional activities such as advertising, sales offer, free samples. sales offer, free samples.

BrandingBranding

Brand ExtensionBrand Extension: Refers to the use of an existing : Refers to the use of an existing brand name that is successful to launch a new or brand name that is successful to launch a new or modified product.modified product.

Generic Brand: Generic Brand: These are trade marks that have These are trade marks that have become synonymous with the name of the product become synonymous with the name of the product itself. Ex: Coke, Pepsi, Xerox. itself. Ex: Coke, Pepsi, Xerox.

Brand LoyaltyBrand Loyalty: Customer buy the same brand of : Customer buy the same brand of product time and time again. Ex: Apple company product time and time again. Ex: Apple company products, where customers buying i-pod and products, where customers buying i-pod and computer etc.computer etc.

TOK TOK

Discuss how business communicate with Discuss how business communicate with consumers or potential customers. Is language consumers or potential customers. Is language the only way business get their message the only way business get their message across?across?

Types of brandingTypes of branding

Family brandingFamily branding Product brandingProduct branding Company brandCompany brand Own-label brandOwn-label brand Manufacturer’s brandsManufacturer’s brands Global brandingGlobal branding

Family brandingFamily branding

This refers to marketing a range of products under a This refers to marketing a range of products under a single brand name. Ex: Sony, General Electric GE, single brand name. Ex: Sony, General Electric GE, Hewlett-Packard, Cadbury’s and Kellogg’s.Hewlett-Packard, Cadbury’s and Kellogg’s.

Businesses that use family branding as marketing Businesses that use family branding as marketing strategy can benefit from economics of scale.strategy can benefit from economics of scale.

By this they can also survey in market place by using By this they can also survey in market place by using brand extension strategy. Ex: Virgin Group uses this brand extension strategy. Ex: Virgin Group uses this name for airlines, mobiles, car sales, books, drinks name for airlines, mobiles, car sales, books, drinks etc.etc.

Family brandingFamily branding

Certain issues with family branding are:Certain issues with family branding are: Bad publicity of one product or business itself Bad publicity of one product or business itself

can lead to huge problem for all products can lead to huge problem for all products under the family brand.under the family brand.

Consistency in quality across all the products Consistency in quality across all the products under the family brand is a big challenge.under the family brand is a big challenge.

At the same time good name for one product At the same time good name for one product will promote all the products under it.will promote all the products under it.

Product brandingProduct branding

Within a family brand, there may be individual Within a family brand, there may be individual brands, also known as product branding.brands, also known as product branding.

This gives a brand a separate identity that is This gives a brand a separate identity that is distinct from the family brand name.distinct from the family brand name.

Ex: Toyota was able to use Lexus to reposition Ex: Toyota was able to use Lexus to reposition itself to cater more affluent customers. itself to cater more affluent customers.

Company brand (Corporate branding)Company brand (Corporate branding)

Company branding is a type of family branding. It Company branding is a type of family branding. It refers to the use of business’s name as the brand refers to the use of business’s name as the brand name. McDonald’s, Nike, Disney and Virgin are name. McDonald’s, Nike, Disney and Virgin are examples. It uses the company name as a strategy to examples. It uses the company name as a strategy to create brand recognition and loyalty.create brand recognition and loyalty.

Benefit by this is economics of large scale.Benefit by this is economics of large scale. Demerit by this is company brand might be ‘too’ Demerit by this is company brand might be ‘too’

successful that the name becomes synonymous with successful that the name becomes synonymous with the actual product. Ex: Band-Aid – Brand name / the actual product. Ex: Band-Aid – Brand name / Johnson & Johnson – Company / Adhesive bandageJohnson & Johnson – Company / Adhesive bandage

Own label brandOwn label brand Own label brands are the brands created and owned Own label brands are the brands created and owned

by distributors, such as warehouse and retailers. Ex: by distributors, such as warehouse and retailers. Ex: Super markets tend to have their own label brands for Super markets tend to have their own label brands for many of their products, such as Wal-Mart wines.many of their products, such as Wal-Mart wines.

Own label brands are also know as private label Own label brands are also know as private label brands. brands.

These products are low price because of home These products are low price because of home production with a benefit of economics of scale.production with a benefit of economics of scale.

Demerit of using own brand is that private labels tend Demerit of using own brand is that private labels tend to be seen by the public as low quality products that to be seen by the public as low quality products that are catered for price-sensitive consumers.are catered for price-sensitive consumers.

Manufacturer’s brandManufacturer’s brand

These are brands created by the producers rather than These are brands created by the producers rather than the distributors of a brand. Ex: Levis Strauss & co.the distributors of a brand. Ex: Levis Strauss & co.

Control supply chains strictly to ensure the only Control supply chains strictly to ensure the only designated supplies through official channels reach designated supplies through official channels reach distributors.distributors.

Levis Strauss &co created a strong brand as this can Levis Strauss &co created a strong brand as this can ensure that the business is resistant to buyers trying to ensure that the business is resistant to buyers trying to force the price down.force the price down.

This creates credibility for the stores selling these by This creates credibility for the stores selling these by this price will be more than the rival products.this price will be more than the rival products.

Global brandGlobal brand

As the world is getting smaller with wide range of technology As the world is getting smaller with wide range of technology facilities and improve in transport links international trade made facilities and improve in transport links international trade made easy.easy.

MNC established brands across globe, this made ADS campaign MNC established brands across globe, this made ADS campaign with global appeal and made economies of scale.with global appeal and made economies of scale.

Nokia is one of many MNC brand where the ADS campaign Nokia is one of many MNC brand where the ADS campaign applicable for all the countries. Another example is McDonalds applicable for all the countries. Another example is McDonalds with a catchy caption attracts all the countries.with a catchy caption attracts all the countries.

At the same time MNC should not go for generalized publicity At the same time MNC should not go for generalized publicity that does not appeal strongly local or regional taste and trends.that does not appeal strongly local or regional taste and trends.