BA9251 BRAND MANAGEMENT LT P C3 0 0 3UNIT I INTRODUCTION 8Basics Understanding of Brands Definitions - Branding Concepts Functions of Brand - Significance of Brands Different Types of Brands Co branding Store brands.UNIT II BRAND STRATEGIES 10Strategic Brand Management process Building a strong brand Brand positioning Establishing Brand values Brand vision Brand Elements Branding for Global Markets Competing with foreign brands.UNIT III BRAND COMMUNICATIONS 8Brand image Building Brand Loyalty programmes Brand Promotion Methods Role of Brand ambassadors, celebraties On line Brand Promotions..UNIT IV BRAND EXTENSION 9Brand Adoption Practices Different type of brand extension Factors influencing Decision for extension Re-branding and re-launching.UNIT V BRAND PERFORMANCE 10Measuring Brand Performance Brand Equity Management - Global Branding strategies - Brand Audit Brand Equity Measurement Brand Leverage -Role of Brand Managers Branding challenges & opportunities Case Studies.TOTAL:45 PERIODSTEXT BOOKS1. Mathew, Brand Management Text & cases, MacMillan, 2008.2. Kevin Lane Keller, Strategic Brand Management: Building, Measuring and Managing,Prentice Hall, 3rd Edition, 2007.REFERENCES1. Tyboust and Kotter, Kellogg on Branding, Wiley, 20082. Lan Batey, Asain Branding A Great way to fly, PHI, Singapore, 2002.

UNIT I INTRODUCTION 8Basics Understanding of Brands Definitions - Branding Concepts Functions of Brand - Significance of Brands Different Types of Brands Co branding Store brands.

IntroductionBranding is a process employed by business and service organizations to create a unique identity and distinguished image for their products and services. In a competitive business world, there will be a good number of similar products offered by various organizations. As a result, consumers will have wide choice and they will be looking for information to make rational choices. In view of this, marketers use differentiation strategy, to gain the attention of the potential customer, and to create interest in them to prefer their product. The communication strategy requires brand support. It helps separate their product from the crowd of me-too products and make a favorable impact on the target customer.

Meaning and DefinitionIn the historical past, a way to tell one persons cattle from another was by means of a hot iron stamp. Accordingly, the practice of producers burning their mark (or brand) onto their products continued giving rise to the use of the word branding. The word brand is derived from the Old Norse brandr meaning to burn.

To have better understanding of the word brand, we have to consider it along with another related word- trade mark.

A brand is a Name, term, design, symbol, or any other feature that identifies one sellers good or service as distinct from those of other sellers.

A trademark is typically a name, word, phrase, logo, symbol, design, image, or a combination of these elements used by an individual, or business organization to identify that the product or service belongs legally to them. In other words, Trademarks serve to identify a particular business as the source of goods or services.

A trademark may be designated by the following symbols:

TM(for an unregistered trademark, that is, a mark used to promote or brand goods) SM(for an unregistered service mark, that is, a mark used to promote or brand services) (for a registered trademark) The owner of a registered trademark can challenge those who copy it or use it as it is without his or her permission, in the court of law. Legally, he or she can prevent unauthorized use of that trademark and punish those who misuse it.

The American Marketing Association (AMA) defines a brand as a name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.

The objectives that a good brand will achieve include:

Delivers the message clearly Confirms credibility of product or company Connects target prospects emotionally with the product or company Motivates the buyer to buy the product Concretes user loyalty

History of BrandingThe Italians were among the first to use brands, in the form of watermarks on paper in the 1200s. In the field of mass-marketing, branding originated in the 19th century with the advent of packaged goods. Factories put their logo or insignia on the packages, extending the meaning of brand to that of trademark. In the field of arts, even the signatures on paintings of famous artists like Leonardo Da Vinci can be viewed as an early branding tool.

Brands that became popularIt is the red triangle of the Bass & Company, a British brewery, and the green and gold packaging of Lyles Golden Syrup that have claims for being considered as the worlds first trademarks.

Campbell soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, Uncle Bens rice and Kelloggs breakfast cereal became popular famous among consumer products.

Theoretical basesAround 1900, James Walter Thompson published a house advertisement that provided commercial explanation of what we now know as branding. Companies soon adopted slogans,mascots, and jingles that began to appear on radio and television.

By the 1940s,manufacturers showed interest in knowing the perceptions and attitudes of customers toward brands and this had advanced the studies on brands and their relationship with customers from social, psychological and anthropological perspectives.

During 1980s, the modern branding practices appeared and concepts like brand identity, brand personality, brand value and brand equity, were employed to discuss branding effects.

The idea that consumers buy brands not only for products but also for their own psychological and social reasons is well promoted. Naomi Klein has described this development as brand equity mania.

In 1988, for example, Philip Morris purchased Kraft for six times what the company was worth on paper; the premium was paid for the brand equity or value.Brand vs UnbrandIs branding necessary? The answer is yes as well as no. Some companies sell their products without branding. It is called commodity strategy. We will now discuss the two strategies: commodity strategy and branding strategy.

Commodity StrategyThe unbranded products are referred to as commodities. Commodity describes products and services that posses two features:

Highly standardized: The quality, size, shape and other defining features of products are same.

Homogeneous: The differences between one product and another are not significant.

Examples are food grains, vegetables, fruits, edible oil, sugar, steel, and edibles. It is reported that as much as 75 per cent of the coconut oil consumed in rural households is unbranded.

When sold as commodities, the marketer can differentiate them in the following ways:

Grading: Those less familiar with the product cannot recognize quality and the grade specifications help them to choose the quality of their choice. Retailer image: Some consumers trust the retailer and buy the goods recommended by him or her. The perceived risk in buying the product available in different grades (also, the fear of adulteration) is reduced by the brand promises. This is the reason why consumers are shifting to branded goods.

Branding StrategyBranding can be a strategy when used to gain the acceptance of consumers and secure a competitive edge. Let us examine the arguments for and against it.

Branding Function:

1. It helps in product identification and gives 'distinctiveness' to the product. 2. Indirectly it denotes the quality or standards of a product. 3. It eliminated imitation products. 4. It ensures legal rights on the products. 5. It helps in advertising and packaging activities. 6. It helps to create and sustain brand loyalty to particular products. 7. It helps in price differentiations of products.

Types of names:Functional Names: The lowest common denominator of names, usually either named after a person, purely descriptive of what the company or product does, or a pre- or suffixed reference to functionality. (Dhara, Godrej, Bajaj)Invented Names: "Invented" as in a made-up name (AIRTEL, GOOGLE, WIPRO) or a non-English name that is not widely known.Experiential Names: A direct connection to something real, a part of direct human experience. Usually literal in nature, but presented with a touch of imagination. (Netscape, Microsoft)Evocative Names: These names are designed to evoke the positioning of a company or product rather than the goods and services or the experience of those goods and services. Removed from direct experience, but relevant evoking memories, stories, and many levels of association. (Tanishq, NIRMA)

Brand elements

Brands typically are made up of various elements, such as:

Name: The word or words used to identify a company, product, service, or concept.

Logo: The visual trademark that identifies the brand.

Tagline or Catchphrase: "The Quicker Picker Upper" is associated with Bounty paper towels.

Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand.

Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are trademarked elements of those brands.

Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink.

Sounds: A unique tune or set of notes can denote a brand. NBC's chimes are a famous example.

Scents: The rose-jasmine-musk scent of Chanel No. 5 is trademarked.

Tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and spices for fried chicken.

Movements: Lamborghini has trademarked the upward motion of its car doors.

Customer relationship management

Types of brand namesBrand names come in many styles. A few include:Initialism: A name made of initials such, as UPS or IBMDescriptive: Names that describe a product benefit or function, such as Whole Foods, Airbus or Toys R' UsAlliteration and rhyme: Names that are fun to say and stick in the mind, such as Reese's Pieces or Dunkin' DonutsEvocative: Names that evoke a relevant vivid image, such as Amazon or CrestNeologisms: Completely made-up words, such as KodakForeign word: Adoption of a word from another language, such as Volvo or SamsungFounders' names: Using the names of real people, (especially a founder's name), such as Hewlett-Packard, Dell, Disney, Stussy or MarsGeography: Many brands are named for regions and landmarks, such as Cisco and Fuji FilmPersonification: Many brands take their names from myths, such as Nike; or from the minds of ad execs, such as Betty CrockerPunny: Some brands create their name by using a silly pun, such as Lord of the Fries, Wok on Water or Eggs Eggscetera

The Types of Brands

Different types of brands work for different marketing approaches that your business might take. Basically, there are a few general types of brands that your business could fall into:

Product brands: Products (commodities) become branded products when you win awareness in the marketplace that your product has compelling characteristics that make it different and better than others in the product category.

Branding is a powerful tool that differentiates your offering in ways that create consumer preference and allow you to command premium pricing.

Service brands: Services are products that people buy sight-unseen. People buy services purely based on their trust that the person or business theyre buying from will deliver as promised. If you sell a service or run a service business, you absolutely, positively need to develop and manage a strong, positive brand image.

Business brands: You can brand your business, itself, in addition to or instead of branding your products or services.

If you can only build one brand and thats the best advice to any business thats short on marketing expertise or dollars make it a business brand because this brand can attract job applicants, investors, and (maybe most importantly) customers.

Personal brands: Whether you know it or not, you have a personal brand. If people know your name or recognize your face, they hold your brand image in their minds.

Personality brands: Personality brands are personal brands gone big-time. Theyre individual brands that are so large and strong that they not only deliver wide-reaching personal celebrity but also create significant value when associated with products or services. Think Martha Stewart, Emeril Lagasse, or Oprah, and you're on the right track. Sure, these are all just people, but their names are associated with a superior quality and subject expertise that speaks to their personality branding.

Co Branding:

Co-branding refers to several different marketing arrangements:

Co-branding, also called brand partnership, is when two companies form an alliance to work together, creating marketing synergy. As described in Co-Branding: The Science of Alliance:

"the term 'co-branding' is relatively new to the business vocabulary and is used to encompass a wide range of marketing activity involving the use of two (and sometimes more) brands. Thus co-branding could be considered to include sponsorships, where Marlboro lends it name to Ferrari or accountants Ernst and Young support the Monet exhibition."

Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to combine the strength of two brands, in order to increase the premium consumers are willing to pay, make the product or service more resistant to copying by private label manufacturers, or to combine the different perceived properties associated with these brands with a single product.

Store Brands:

Store brands are a line of products strategically branded by a retailer within a single brand identity. They bear a similarity to the concept of house brands, private label brands (PLBs) in the United States, own brands in the UK, and home brands in Australia and generic brands. They are distinct in that a store brand is managed solely by the retailer for sale in only a specific chain of store. The retailer will design the manufacturing, packaging and marketing of the goods in order to build on the relationship between the products and the store's customer base. Store-brand goods are generally cheaper than national-brand goods, because the retailer can optimize the production to suit consumer demand and reduce advertising costs. Goods sold under a store brand are subject to the same regulatory oversight as goods sold under a national brand.

Store brand products encompass all merchandise sold under a retail store's private label. That label can be the chain's own name or a brand name created exclusively by the retailer for their stores. In some cases, a store may belong to a wholesale buying group that owns labels that are available to the members of the group. These wholesaler-owned labels are referred to as controlled labels.

Store brand items are offered in just about every food and non-food grocery category: fresh, frozen and refrigerated food, canned and dry foods, snacks, ethnic specialties, pet foods, health and beauty care, over-the-counter drugs, cosmetics, household and laundry products, lawn and garden chemicals, paints, hardware, auto aftercare, stationery and house wares, among other sections of the store.

Manufacturers of store brand products fall into four general classifications: They are large national brand manufacturers that utilize their expertise and excess plant capacity to supply store brands. They are small, quality manufacturers that specialize in particular product lines and concentrate on producing store brands almost exclusively. Often these companies are owned by corporations that also produce national brands. They are major retailers and wholesalers that own their own manufacturing facilities and provide store brand products for themselves. And they are also regional brand manufacturers that produce private label products for specific markets.

Arguments forProvides confidence to buyers: Consumers of all types and areas are today aspiring for quality of life as a consequence of the development schemes of government and NGOs. The literate and illiterate, the urban and rural, men and women prefer to buy branded products. Even the poor prefer branded shampoos and hair oils sold in small volume sachets. To customers, brands symbolize quality. They think the perceived risk in buying will be lower.People are confident in buying brands like Lux, Lifebuoy, Fair& Lovely, Horlicks, Boost, Bournvita, Parachute, Navaratna, Sunsilk, Clinic plus, and Meera. Provides distinguishing identity: A brand name gives identity to a companys product. It helps recognition and processing jobs easy for the company, distributors and consumers. It thus saves costs and time in manufacturing, warehousing, transporting and order processing for the company when selling. Distributors can reap similar benefits in handling the products and selling them. Consumers find it easy to spot and select the product. eople can distinguish Coca cola, Pepsi and Thumsup. Though all of them are cola drinks, they differ in packaging and taste.Image gives competitive advantage: Brands earn recognition and reputation by their performance. The image helps the existing products in the line as well as new products. It gives a commanding position to the marketer to charge higher prices than competitors and to convince distributors to carry the products. Organisations interested in quality office furniture buy from Godrej. Men interested in buying quality suits buy from Raymond. Women interested in quality jewellery, buy from Tanishq.

Personality attracts consumers: Brands in course of their association with consumers develop personalities. Advertisers take this opportunity to match the personality of brands with that of prospects. It helps build brand loyaltya lasting companionship, a strong bondage between a brand and consumer. Marketers create a personality for the brands they sell. Raymond talks about complete man. Fair& Lovely presents woman as an achiever. Pleasure scooty of Hero Honda asks why boys should have all the fun and presents a liberated young girl.

Enhances value: By their popularity, brands not only enhance their value-in-use but also value-in-exchange. A company that has built brand image over a period of time by its incessant innovative efforts gets a reward for example, premium price offer for its brand from a competitor or interested entrepreneur willing to own it. Allows buying inertia-In industrial markets, quality, price and service are vital but in practice there is one over-riding issue which is seldom mentioned as a reason for choosing a company - that is because we have always bought from that company. Just consider the number of years people in industry have used the same companies as their main suppliers. It is not unusual for a supplier to have been used for five, ten or even twenty years. Arguments AgainstCategory competition: Most of the Indians are price conscious. As such, the competition is more of categories rather than brands. 70% of the population living in villages are less literate and gullible. As such, branded products are not affordable to many. The real competition is not among brands but categories. Notion of high prices: The common notion prevalent among rural and mid income consumers is branded products are high-priced ones. As such, they shun brands. Investment-returns doubtful: Brand building is not an easy task. It requires a great deal of long range investment. It is to be supported by R & D investment, advertising budget and dealer discounts. However, there is no assurance of returns. Many brands have failed. Many are struggling hard despite the good images they have built over a time. Image and personality are emotional nonsense: All the talk about brand personality and image are psychological fantasies created by marketers. No product sells on brand name. Only when it fulfils a need, does it stay and succeed in the market. The image of a product or brand cannot help other brands. When a person buys the product, the overriding considerations are cost (price and operational economics) and functional benefits Brand equity is sensible but not new: The brand equity concept replaces the old term good will. It is not something new to be argued in favour of a brand. It is the outcome of business built over a period. People trust Tata companies, Godrej, Mafatlal etc., as they were operating long since and offering reasonably good products. Customers prefer to buy from a local retailer who is known and sometimes buy on his or her recommendation.

Benefits of Branding

ConsumersManufacturers

Identification of sourceMeans of identification for handling or tracing

Assignment of responsibilityLegal protection

Risk reducer functional, physical, financial, social, psychological, and timeSignal of quality to consumers

Search cost reducerEndowing product with unique association

Promise, bond, or pactCompetitive advantage

Symbolic, culturalSource of financial return

Signal of quality

UNIT II BRAND STRATEGIES 10Strategic Brand Management process Building a strong brand Brand positioning Establishing Brand values Brand vision Brand Elements Branding for Global Markets Competing with foreign brands.

Strategic Brand Management Process

The process of strategic brand management basically involves 4 steps:1. Identifying and establishing brand positioning.Brand Positioning is defined as the act of designing the company's offer and image so that it occupies a distinct and valued place in the target consumer's mind.Key Concepts: Points of difference: convinces consumers about the advantages and differences over the competitors

Mental Map: visual depiction of the various associations linked to the brand in the minds of the consumers

Core BrandAssociations: subset of associations i.e. both benefits and attributes which best characterize the brand.

Brand Mantra: that is the brand essence or the core brand promise also known as the Brand DNA.

2. Planning and Implementation of Brand Marketing ProgramsKey Concepts: Choosing Brand Elements: Different brand elements here are logos, images, packaging, symbols, slogans, etc. Since different elements have different advantages, marketers prefer to use different subsets and combinations of these elements.

Integrating the Brand into Marketing Activities and the Support Marketing Program: Marketing programs and activities make the biggest contributions and can create strong, favorable, and unique brand associations in a variety of ways.

Leveraging Secondary Associations: Brands may be linked to certain source factors such as countries, characters, sporting or cultural events,etc. In essence, the marketer is borrowing or leveraging some other associations for the brand to create some associations of the brand's own and them to improve it's brand equity.

3. Measuring and Interpreting Brand PerformanceKey Concepts: Brand Audit: Is assessment of the source of equity of the brand and to suggest ways to improve and leverage it.

Brand Value chain: Helps to better understand the financial impacts of the brand marketing investments and expenditures.

Brand Equity Measurement System: Is a set of tools and procedures using which marketers can take tactical decision in the short and long run.

4. Growing and Sustaining Brand Equity:Key Concepts: Defining the brand strategy: Captures the branding relationship between the various products /services offered by the firm using the tools of brand-product matrix, brand hierarchy and brand portfolio

Managing Brand Equity over time: Requires taking a long -term view as well as a short term view of marketing decisions as they will affect the success of future marketing programs.

Managing Brand Equity over Geographic boundaries, Market segments andCultures: Marketers need to take into account international factors, different types of consumersand the specific knowledge about the experience and behaviors of the new geographies ormarket segmentswhen expanding the brandoverseas or into new market segments.

Strong Brand:In general, strong brands possess the following personality attributes:

Trustworthy Authentic Reliable (I can always count on [brand]!) Admirable Appealing Honest Likable Popular Unique Believable Relevant Delivers high quality, well performing products and services Service-oriente Building strong brand personality requires special focus on packaging and advertising.

Packaging: Second major component of brand personality is the packaging factor. It communicates much about brand personality e.g. color association - Golden/Silver colors are used to represent premium products.

Advertising The contents shown in the ads communicate a very strong message that leaves a very strong and lasting impression in customers minds. The elements like layout, colour etc (in print ads) and visual appeal, music etc contribute to the brand personality. Mozart symphony played in Titan advertisement complements the brand personality of Titan as sophisticated, elegant one.

Social MediaBrands are breaking the barriers and reaching customers through social media. Customers are talking to brands and exchanging their views. Today the customers say: I know what you are doing brand.

In order to successfully give your brand a personality on Social Media, consider these first:

What is your brand? What would you like your brand to be seen as? Who would you like your brand to relate to the most?Once you have considered the above, you can then choose to respond to your consumers by keeping the following in mind

Voice-Choose the voice that you feel would fit your personality the most. For example, if your brand wants to be seen as the authority in your field and yet be accessible to consumers, keep all social media interactions civil and regular. However if you want to reach out to young people aged 16-25, you can adopt a friendlier and easy-going stance by having an ongoing conversation with them (always have an objective in mind while doing so).If you are targeting young people, you can adopt aHey man! Thanks for the compliment! tone. Politeness- Do note that just as the words Im Sorry goes a long way in rebuilding your reputation when crisis befalls, the words Thank You also go a long way in building up your brand personality when a customer has something nice to say about you on Social Media acknowledge compliments and thank them for their graciousness!

Giving - Another good point to add would be that you would try your best to continue giving your best to your customers.Brand Positioning: The marketing activity and process of identifying a market problem or opportunity, and developing a solution based on market research, segmentation and supporting data. Positioning may refer the position a business has chosen to carry out their marketing and business objectives. Positioning relates to strategy, in the specific or tactical development phases of carrying out an objective to achieve a business' or organization's goals, such as increasing sales volume, brand recognition, or reach in advertisingBrand positioning processEffective Brand Positioning is contingent upon identifying and communicating a brand's uniqueness, differentiation and verifiable value. It is important to note that "me too" brand positioning contradicts the notion of differentiation and should be avoided at all costs. This type of copycat brand positioning only works if the business offers its solutions at a significant discount over the other competitor(s).

Generally, the brand positioning process involves:

1. Identifying the business's direct competition (could include players that offer your product/service amongst a larger portfolio of solutions)

2. Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest, largest, the #1 provider, etc.)

3. Documenting the provider's own positioning as it exists today (may not exist if startup business)

4. Comparing the company's positioning to its competitors' to identify viable areas for differentiation

5. Developing a distinctive, differentiating and value-based positioning concept

6. Creating a positioning statement with key messages and customer value propositions to be used for communications development across the organisation

Positioning conceptsMore generally, there are three types of positioning concepts:

1. Functional positions

Solve problems

Provide benefits to customers

Get favorable perception by investors (stock profile) and lenders

2. Symbolic positions

Self-image enhancement

Ego identification

Belongingness and social meaningfulness

Affective fulfillment

3. Experiential positions

Provide sensory stimulation

Provide cognitive stimulation

Brand elements

Brands typically are made up of various elements, such as

Name: The word or words used to identify a company, product, service, or concept.

Logo: The visual trademark that identifies the brand.

Tagline or Catchphrase: "The Quicker Picker Upper" is associated with Bounty paper towels.

Graphics: The dynamic ribbon is a trademarked part of Coca-Cola's brand.

Shapes: The distinctive shapes of the Coca-Cola bottle and of the Volkswagen Beetle are trademarked elements of those brands.

Colors: Owens-Corning is the only brand of fiberglass insulation that can be pink.

Sounds: A unique tune or set of notes can denote a brand. NBC's chimes are a famous example.

Scents: The rose-jasmine-musk scent of Chanel No. 5 is trademarked.

Tastes: Kentucky Fried Chicken has trademarked its special recipe of eleven herbs and spices for fried chicken.

Movements: Lamborghini has trademarked the upward motion of its car doors.

Customer relationship management

Global Branding Marketers in India will catch up with the rest of the world, and adopt a global mindset. The mantrathink global; act local will be extended to brand global; market local. They seek to evolve brands that would have universal trust, appeal and a single-minded vision. Marketing programs that support the brands will respect local culture and global fashions.

Building a global brand requires more than just launching a web site that's accessible from almost anywhere in the world.

From language missteps to misunderstanding cultural norms, veteran branding expert Barbara E. Kahn has seen it all when it comes to the missteps of launching a brand across borders. Here, she shares five tips to help entrepreneurs avoid the pitfalls.

Related:The Secrets of 7 Successful Brands1. Understand customer behavior. Just because consumers have certain buying preferences or habits in one culture, doesn't mean that such preferences are universal. "It's astonishing how many retailers haven't made it because they haven't studied how consumers shop," she says.

In her book, Global Brand Power(Wharton Digital Press, 2013), Kahn cites Walmart's mistake in choosing locations in China that were near industrial parks when consumers were used to shopping closer to home instead of near work.

2. Position yourself properly. Good brand positioning includes truly understanding your competition and then looking at your competitive advantage. Who are the providers of similar products and services that you sell in this country? They may not be the same providers as in the U.S.

For example, if you sell athletic clothing, look at where people are buying their athletic clothing. It could be from specialty stores, online retailers, or sporting goods stores. If you have a high-end brand and you're going into a market where the preferred buying location is discount retailers, it may take a different strategy from the one you use in the U.S. "You need to understand how people shop and how your brand will fit into that mix," she says.

3. Know how your brand translates.A clever brand or product name in one language may translate into an embarrassing misstep in another. For example, the French cheese brand Kiri changed its name to Kibi in Iran because the former name means rotten or rank in Farsi -- not exactly the association you want for cheese.

In addition to ensuring that your brand translates well into other languages, consider which colors are favored in various markets. In the U.S., blues and greens are favored, while reds and yellows are frequently used in some Latin American countries and may be appealing and familiar to audience members from those areas.

4. Think broadly. Since your company may need to expand into offering new products based on regional market demands, it's important that your company name be broad enough to accommodate those changes.

"Boston Chicken changed its name to Boston Market because it had expanded into other foods," Kahn says. If your company name is Brian's Computers for example, consider whether that will be limiting in other markets if you also sell peripherals and services, she says.

5. Find good partners. Work with your attorney to protect your intellectual property overseas, filing the appropriate trademark and patent protections in the U.S. and elsewhere, if applicable. Find trade representatives who come recommended from colleagues or state or federal trade offices, since they're more likely to be reputable.

UNIT III BRAND COMMUNICATIONS 8Brand image Building Brand Loyalty programmes Brand Promotion Methods Role of Brand ambassadors, celebraties On line Brand Promotions.Brand Image:

The impression in the consumers' mind of a brand's total personality (real and imaginary qualities and shortcomings). Brand image is developed over time through advertising campaigns with a consistent theme, and is authenticated through the consumers' direct experience. See also corporate image.

Brand image is the current view of the customers about a brand. It can be defined as a unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the consumers perception about the product. It is the manner in which a specific brand is positioned in the market. Brand image conveys emotional value and not just a mental image. Brand image is nothing but an organizations character. It is an accumulation of contact and observation by people external to an organization. It should highlight an organizations mission and vision to all. The main elements of positive brand image are- unique logo reflecting organizations image, slogan describing organizations business in brief and brand identifier supporting the key values.

Brand image is the overall impression in consumers mind that is formed from all sources. Consumers develop various associations with the brand. Based on these associations, they form brand image. An image is formed about the brand on the basis of subjective perceptions of associations bundle that the consumers have about the brand. Volvo is associated with safety. Toyota is associated with reliability.

The idea behind brand image is that the consumer is not purchasing just the product/service but also the image associated with that product/service. Brand images should be positive, unique and instant. Brand images can be strengthened using brand communications like advertising, packaging, word of mouth publicity, other promotional tools, etc.

Brand image develops and conveys the products character in a unique manner different from its competitors image. The brand image consists of various associations in consumers mind - attributes, benefits and attributes. Brand attributes are the functional and mental connections with the brand that the customers have. They can be specific or conceptual. Benefits are the rationale for the purchase decision. There are three types of benefits: Functional benefits - what do you do better (than others ),emotional benefits - how do you make me feel better (than others), and rational benefits/support - why do I believe you(more than others). Brand attributes are consumers overall assessment of a brand.

Brand Loyalty

In marketing, brand loyalty refers to a consumer's commitment to repurchase or otherwise continue using a particular brand by repeatedly buying a product or service.

The American Marketing Association defines brand loyalty as: 1. ) "The situation in which a consumer generally buys the same manufacturer-originated product or service repeatedly over time rather than buying from multiple suppliers within the category" (sales promotion definition). 2. ) "The degree to which a consumer consistently purchases the same brand within a product class" (consumer behavior definition).

Aside from a consumer's ability to repurchase a brand, true brand loyalty exists when a. ) the customer is committed to the brand, and b. ) the customers have a high relative attitude toward the brand, which is then exhibited through repurchase behavior. For example, if Joe has brand loyalty to Company A, he will purchase Company A's products even if Company B's products are cheaper and/or of a higher quality.

Brand loyalty is viewed as a multidimensional construct, determined by several distinct psychological processes, such as the customers' perceived value, brand trust, satisfaction, repeat purchase behavior, and commitment. Commitment and repeated purchase behavior are considered as necessary conditions for brand loyalty, followed by perceived value, satisfaction, and brand trust.

Philip Kotler defines four customer-types that exhibit similar patterns of behavior:

a) Hardcore Loyals, who buy the brand all the time

b) Split Loyals, loyal to two or three brands

c) Shifting Loyals, moving from one brand to another

d) Switchers, with no loyalty (possibly "deal-prone," constantly looking for bargains, or "vanity prone," looking for something different).

Benefits of Brand Loyalty

The benefits of brand loyalty are longer tenure (or staying a customer for longer), and lower sensitivity to price. Recent research found evidence that longer-term customers were indeed less sensitive to price increases.

According to Andrew Ehrenberg, consumers buy "portfolios of brands. " They switch regularly between brands, often because they simply want a change. Thus, "brand penetration" or "brand share" reflects only a statistical chance that the majority of customers will buy that brand next time as part of a portfolio of brands. It does not guarantee that they will stay loyal.

By creating promotions and loyalty programs that encourage the consumer to take some sort of action, companies are building brand loyalty by offering more than just an advertisement. Offering incentives like big prizes creates an environment in which customers see the advertiser as more than just the advertiser. Individuals are far more likely to come back to a company that uses interesting promotions or loyalty programs than a company with a static message of "buy our brand because we're the best. "

Popular Loyalty Programs

Below are some of the most popular Loyalty Programs that are currently being used by major companies as a means of engaging their customers beyond traditional advertising.

Sweepstakes and Advergames

Branded digital games that engage consumers with prize incentives

Contests

Skill tests and user-generated promotions such as video and photo contests

Social Media Applications and Management

Develop promotions and offers within social media channels

Ongoing management and maintenance of brand Facebook pages and other social media

Customer Rewards Programs

Online points programs earn prizes for incremental purchase behavior (e.g., JetBlue's TrueBlue and American Airlines's AAdvantage frequet flyer programs)

My Coke Rewards, Pepsi Stuff, and the Marriott Rewards loyalty programs

Promotional auctions bid for prizes with points earned from incremental purchase behavior

Brand PromotionBrand promotion is a common marketing strategy intended to increase product awareness, customer loyalty, competitiveness, sales and overall company value. Businesses use it not only to show what is different or good about themselves and what's for sale, but also to keep that image alive for consumers. It usually focuses on elements that can stand the test of time, although businesses do adjust promotions based on what is happening in the market. The efforts required to be effective with these techniques require that marketers be passionate about what they're doing.

Objectives of Brand promotionThe main objectives of brand promotion are :

(i) To Promote Information: The firm provides the relevant information about its various brands offered in the market. Information relates to features, prices, special schemes, etc. of the brands.

(ii) To Differentiate the Product: Another main objective of brand promotion is 'brand differentiation' which means convincing the customers about the unmatchable features or merits of the particular brand. For example, Pepsi differentiates its brand by using the slogan "The choice of a new generation". Such differentiation helps to create 'Brand Loyalty' which means consumers are faithful to and continue to prefer a particular brand, e.g., Lux soap.

(iii) To Increase Demand: Brand promotion efforts aim at stimulating demand for a product. They persuade customers to buy more and more of the product so as to increase its sales and market share.

(iv) To Build Brand Equity: Brand equity means the power and value that a brand adds to a product. The utility of the brand is emphasized. Status oriented advertisements highlight the value of the brand and pride in its ownership. For example, utility of owning a Mercedes Benz car or LG air conditioner.

(v) To Stabilize Sales: Seasonal, cyclical and other fluctuations in demand affect sales. Brand promotion efforts seek to stabilize sales by minimizing the impact of such fluctuations. For example, Nescafe promoted its new brand of 'iced coffee' to increase sales during summer.

(vi) To Offset Competitors' Marketing Efforts: In a highly competitive market, even a well-established brand has to be promoted to retain market share. For example, Coca Cola and Pepsi keep on repeating their advertisements for their own brands of soft drinks so as to offset each other's efforts.

(vii) To Build Image: Brand promotion is also aimed at creating a positive image of the company offering its brands in the market. A company can build its prestige and goodwill by offering quality brands at reasonable prices and through satisfactory after-sale service

Methods of Brand Promotion:

Create a brand image, or logo. Widespread brand recognition is your goal, as it will give your business credibility and inspire others to spread the word about your business. Grow your brand by placing your logo in your business stationary, business cards, email signatures, brochures, signs, website and merchandising materials.Network. Meeting professionals from other, related businesses is an effective form of business promotion, as it provides you with opportunities to learn about your competitors, ask for referrals, form mutually beneficial partnerships in complementary industries and spread awareness about your business throughout a group of like-minded people. Network with other professionals in the following ways:

Attend networking group meetings. You can find networking groups and clubs on the Internet, in newspapers and in trade publications.

Introduce yourself to people at the meetings. Explain what it is your business does, what you offer that makes you stand out from your competition and what you are looking for in business relationships.

Ask relevant questions during group discussions. In addition to promoting your business, you can learn a lot at networking meetings. Additionally, asking open-ended questions encourages others to participate in the conversation, and sets you up for more introductions.

Advertise. Consider these methods for advertising your business: Signs. You may opt for storefront signs, billboards, marquee boards or street-side yard signs.

Print. Place print ads in magazines, newspapers, coupon books, trade journals and industry magazines. Choose print mediums that are suited to your business. For example, if you run a technology parts recycling warehouse, then you may consider placing ads in computer classifieds and technology magazines.

Commercials. Television and radio commercials are effective ways to promote your business to a broad audience, but they are relatively costly forms of advertising.

Build business partnerships with other organizations. In effect, piggyback off the success of another business. Taco Bell has recently unveiled the Doritos Locos Taco, which is a branding coup for both Taco Bell and Doritos. Whenever you think of one brand, the other brand comes to mind, and vice-versa. Business partnerships can be very effective advertising tools.

Rely on the power of social networks. Social networks have become the new darling of advertising because much of the legwork is being done by dedicated fans, for free. You could pay someone to advertise for you, or you could establish a social community of fans who advertise by word of mouth, at little or no cost. What's it going to be?

Offer freebies. Pass out merchandise with your company's name and/or logo on it to everyone you meet at networking events, trade shows, client meetings and even personal social gatherings. Things like pens, magnets and calendars are good merchandising ideas, as these tend to stay in use, and within view, for extensive periods of time.Develop relationships with your customers. Customers are people not numbers and it is important that you put consideration and effort into building personal relationships with them. For example, when you send out Christmas cards each year, you not only gain customer loyalty but you also inspire customers to promote your business to the people they know.\Brand AmbassadorBrand ambassador is a marketing term for a person employed by an organization or company to promote its products or services within the activity known as branding. The brand ambassador is meant to embody the corporate identity in appearance, demeanor, values and ethics.[1] The key element of brand ambassadors lies in their ability to use promotional strategies that will strengthen the customer-product/service relationship and influence a large audience to buy and consume more. Predominantly, a brand ambassador is known as a positive spokesperson appointed as an internal or external agent to boost product/service sales and create brand awareness. Today, brand ambassador as a term has expanded beyond celebrity branding to self branding or personal brand management. Professional figures such as good-will and non-profit ambassadors, promotional models, testimonials and brand advocates have formed as an extension of the same concept, taking into account the requirements of every companyCelebrity branding is a type of branding, or advertising, in which a celebrity becomes a brand ambassador and uses his or her status in society to promote a product, service or charity, and sometimes also appears as a promotional model.Celebrity branding can take several different forms, from a celebrity simply appearing in advertisements for a product, service or charity, to a celebrity attending PR events, creating his or her own line of products or services, or using his or her name as a brand. The most popular forms of celebrity brand lines are for clothing and fragrances. Many singers, models and film stars now have at least one licensed product or service which bears their name.

Celebrities often provide voice-overs for advertising. Some celebrities have distinct voices which are recognizable even when they are not visible on-screen. This is a more subtle way to add celebrity branding to a product or service. An example of such an advertising campaign is Sean Connery's voice-over for Level 3 Communications.

The use of a celebrity or sports professional can have a huge impact on a brand. For example, sales of Nike golf apparel and footwear doubled after Tiger Woods was signed up on a sponsorship deal.More recently, advertisers have begun attempting to quantify and qualify the use of celebrities in their marketing campaigns by evaluating their awareness, appeal, and relevance to a brand's image and the celebrity's influence on consumer buying behavior.

Celebrity branding is a global phenomenon and it assumes paramount importance in countries like India, where celebrities are given the status of demi Gods by the masses. There is a certain correlation between successful celebrity branding and brand endorsements.

Online Brand Promotion

EmailEmail marketing is still one of the most effective way of communicating with your customers or potential customers online if you have them in your database. A best practice is to divide your database into segments, for example: not likely to make a purchase, likely to purchase, recently purchased, purchased in the past. Tailor your messaging appropriately to your database and use all the data tracked by modern cloud email clients like MailChimp, Constant Contact, and Campaign Monitor to your advantage. Dont be afraid to get creative because in the time of automated nurturing, only the most relevant and attention-grabbing (in good taste) stand out.

Forums/Review SitesTheres a forum for that. Chances are there are people talking about products like yours on many of the review deal sites or forums online today. The best way to find relevant reviews is to do a quick search for [your product category] forum or [your brand] review. Also be sure to check out generic discussion pavillions like LinkedIn, Amazon, and Quora.

Responding to a forum post (especially a negative one) in a professional and helpful manner will make your brand look responsible and might even help drive traffic to your site. No brand will please all of its customers, but the ones that stand out go the extra mile to unruffle the feathers of unsatisfied customers and leave a great impression.

Social media/BlogsFinding the right mix of content has long been a challenging art to master and recently, it has been trending science. Coined by Joe Pulizzi of the Content Marketing Institute, the 4-1-1 rule is a good rule of thumb to use in social media: Every 6 pieces of content should be made up of 4 pieces of new content, 1 recycled piece, and 1 self-promotional piece.

A great way to begin to ramp up your social media presence is by simply sharing and socializing more often and in more places. Join and be active in relevant groups. Your followers will come as you become more integrated in communities.

Banner ads and remarketingYouve probably seen the banner ads of many sites youve visited recently on sites that carry top and/or sidebar ad spaces. Banner ads are an effective way to stay top of mind of your customers and drive remarketing traffic to your page. Again, the theme here is relevancy. An awesome way to stand out is to use the cookie information of specific pages your customers have visited and display the corresponding product they were browsing right there in the banner ad. When used knowledgeably, banner ads can yield tremendous ROI.

UNIT IV BRAND EXTENSION 9Brand Adoption Practices Different type of brand extension Factors influencing Decision for extension Re-branding and re-launchingAdoption:

Five-stage mental process all prospective customers go through from learning of a new product to becoming loyal customers or rejecting it. These stages are (1) Awareness: prospects come to know about a product but lack sufficient information about it; (2) Interest: they try to get more information; (3) Evaluation: they consider whether the product is beneficial; (4) Trial: they make the first purchase to determine its worth or usefulness; (5) Adoption/Rejection: they decide to adopt it, or look for something else. Another explanation is that the customer moves from a cognitive state (being aware and informed) to the emotional state (liking and preference) and finally to the behavioral or conative state

Adoption Process

It is a cognitive process through which all the consumers pass before actually purchasing the product. It is divided into 5 stages:

a. Awareness:When the potential consumers are apprised of the product but do not have a detailed knowledge about it.

b. Interest:When the product catches the consumers attention and she herself tries to discover more and more about it.

c. Evaluation:In this stage, the consumer has enough knowledge about the product and she considers its relative benefits and evaluates it in terms of various factors as cost, aesthetics, competitors offering, etc.

d. Trial:This is the stage when the consumer experiences the product and judges whether the claims are correct or not. Trials can be generated by sampling or by the consumer herself buying the product. Many new brands aim to reach this stage as soon as possible.

e. Adoption or Rejection decision:This is the stage when the consumer has made up her mind whether to remain with the product or switch back to her earlier product.

Brand Extension:Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off. Organizations use this strategy to increase and leverage brand equity (definition: the net worth and long-term sustainability just from the renowned name). An example of a brand extension is Jello-gelatin creating Jello pudding pops. It increases awareness of the brand name and increases profitability from offerings in more than one product category.

A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals. Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess. Arm & Hammer leveraged its brand equity from basic baking soda into the oral care and laundry care categories. By emphasizing its key attributes, the cleaning and deodorizing properties of its core product, Arm & Hammer was able to leverage those attributes into new categories with success. Another example is Virgin Group, which was initially a record label that has extended its brand successfully many times; from transportation (aeroplanes, trains) to games stores and video stores such a Virgin Megastores.

In the 1990s, 81 percent of new products used brand extension to introduce new brands and to create sales. Launching a new product is not only time-consuming but also needs a big budget to create brand awareness and to promote a product's benefits. Brand extension is one of the new product development strategies which can reduce financial risk by using the parent brand name to enhance consumers' perception due to the core brand equity.

Types of brand extensionBrand extension research mainly focuses on consumer evaluation of extension and attitude toward the parent brand. In their 1990 model, Aaker and Keller provide a sufficient depth and breadth proposition to examine consumer behaviour and a conceptual framework. The authors use three dimensions to measure the fit of extension. First, the Complement refers to consumers taking two product classes (extension and parent brand product) as complementary in satisfying their specific needs.[10] Secondly, the Substitute indicates two products have the same user situation and satisfy the same needs, which means the product classes are very similar and that the products can act to replace each other. Lastly, the Transfer describes the relationship between extension product and manufacturer which reflects the perceived ability of any firm operating in the first product class to make a product in the second class The first two measures focus on the consumers demand and the last one focuses on the firms perceived ability.

From the line extension to brand extension, however, there are many different types of extension such as "brand alliance",[12] co-branding[13]

HYPERLINK "http://en.wikipedia.org/wiki/Brand_extension" \l "cite_note-14" [14] or brand franchise extension. Tauber (1988) suggests seven strategies to identify extension cases such as product with parent brands benefit, same product with different price or quality, etc. In his suggestion, it can be classified into two category of extension; extension of product-related association and non-product related association. Another form of brand extension is a licensed brand extension. In this scenario, the brand-owner works with a partner (sometimes a competitor), who takes on the responsibility of manufacturing and sales of the new products, paying a royalty every time a product is sold.

Types of Brand ExtensionsA brand name can be extended in three ways:

1. Extended to other items in the same product lineSunrise coffee was extended to other Sunrise Premium and Sunrise Extra coffee catering to different segments. This is called line extension. All are products in the same line-coffee.

2. Extended to items in a related product lineMaggi initially was a brand of noodles. Later, the brand name was Extended to other product lines in the related category food-Maggi Ketchup, Maggi Soup, etc. It is a case food items. This is called related brand extension or category extension.

3. Extended to items in an unrelated product line

The brand name Enfield, initially used for motorcycles, was later Extended to television and gensets. Here, the products belong to different and unrelated categories. It is a case of unrelated brand extension, or outside the category extension.

2. Extending a Brand name to products in a related line (Category extension) Here, the brand name is extended over different products, but the products are related in some way. In order words, they belong to a category. The Maggie example cited earlier fits this description. Dettol can be cited as another example.

Dettol :For years, Dettol has been a well known brand of Antiseptic lotion. When the company, Reckitt & Colman, decided to expand into new antiseptic products, they decided to launch them under the Dettol brand name, i.e., as brand extensions in related category. They felt that it would enable the new products to gain immediate identification as sister products of Dettol and they would easily move under the Dettol name. The Dettol brand name was extended to number of related products as shown below:

Dettol soap Antiseptic Soap

Dettol Plaster Antiseptic Bandage

Dettol Hand wash Antiseptic Wash

3. Extending a Brand Name to Products in an unrelated line (Outside category extension) : Here, the Brand Name is extended across completely new and unrelated products, falling under all together different product categories. It is here that brand extension is put to the severest test and the value of the brand is leveraged to the maximum. In other words, it is when a brand name is extended to products in unrelated lines that the reward, as well as the risk, is the maximum. The reward arises from the substantial savings in the cost and time involved in developing and all together new brand. We will understand this dimension when we analyses the basic condition for success of brand extensions.

ReBrandingRebranding is a marketing strategy in which a new name, term, symbol, design, or combination thereof is created for an established brand with the intention of developing a new, differentiated identity in the minds of consumers, investors, and competitors.[1]

HYPERLINK "http://en.wikipedia.org/wiki/Rebranding" \l "cite_note-2" [2] Often, this involves radical changes to a brand's logo, name, image, marketing strategy, and advertising themes. Such changes typically aim to reposition the brand/company, occasionally to distance itself from negative connotations of the previous branding, or to move the brand upmarket; they may also communicate a new message a new board of directors wishes to communicate.

Rebranding can be applied to new products, mature products, or even products still in development.

Product rebrandingAs for product offerings, when they are marketed separately to several target markets this is called market segmentation. When part of a market segmentation strategy involves offering significantly different products in each market, this is called product differentiation. This market segmentation/product differentiation process can be thought of as a form of rebranding. What distinguishes it from other forms of rebranding is that the process does not entail the elimination of the original brand image. Dexxa computer mice are rebranded Logitech devices sold at a lower price by Logitech in the low-end market segment without undercutting their mid-range products. Rebranding in this manner allows one set of engineering and QA to be used to create multiple products with minimal modifications and additional expense.

UNIT V BRAND PERFORMANCE 10Measuring Brand Performance Brand Equity Management - Global Branding strategies - Brand Audit Brand Equity Measurement Brand Leverage -Role of Brand Managers Branding challenges & opportunities Case Studies.

Brand Equity

Brand equity is a phrase used in the marketing industry which describes the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more money from products with that brand name than from products with a less well known name, as consumers believe that a product with a well-known name is better than products with less well-known names.

Some marketing researchers have concluded that brands are one of the most valuable assets a company has,[5] as brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. Elements that can be included in the valuation of brand equity include (but not limited to): changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values.

Consumers' knowledge about a brand also governs how manufacturers and advertisers market the brand.[7]

HYPERLINK "http://en.wikipedia.org/wiki/Brand_equity" \l "cite_note-8" [8] Brand equity is created through strategic investments in communication channels and market education and appreciates through economic growth in profit margins, market share, prestige value, and critical associations. Generally, these strategic investments appreciate over time to deliver a return on investment. This is directly related to marketing ROI. Brand equity can also appreciate without strategic direction. A Stockholm University study in 2011 documents the case of Jerusalem's city brand. The city organically developed a brand, which experienced tremendous brand equity appreciation over the course of centuries through non-strategic activities. A booming tourism industry in Jerusalem has been the most evident indicator of a strong ROI.

Brand equity is strategically crucial, but famously difficult to quantify. Many experts have developed tools to analyze this asset, but there is no universally accepted way to measure it. As one of the serial challenges that marketing professionals and academics find with the concept of brand equity, the disconnect between quantitative and qualitative equity values is difficult to reconcile. Quantitative brand equity includes numerical values such as profit margins and market share, but fails to capture qualitative elements such as prestige and associations of interest. Overall, most marketing practitioners take a more qualitative approach to brand equity because of this challenge

ConstructionThere are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level, and still others are at the consumer level.

Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset. For example, if you were to take the value of the firm, as derived by its market capitalizationand then subtract tangible assets and "measurable" intangible assetsthe residual would be the brand equity.[5] One high-profile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the basis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and reflects the risk profile, market leadership, stability and global reach of the brand.[12] Brand valuation modeling is closely related to brand equity, and a number of models and approaches have been developed by different consultancies. Brand valuation models typically combine a brand equity measure (e.g.: the proportion of sales contributed by "brand") with commercial metrics such as margin or economic profit.

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.[13] More recently a revenue premium approach has been advocated.[4] Marketing mix modeling can isolate "base" and "incremental" sales, and it is sometimes argued that base sales approximate to a measure of brand equity. More sophisticated marketing mix models have a floating base that can capture changes in underlying brand equity for a product over time.

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). Free association tests and projective techniques are commonly used to uncover the tangible and intangible attributes, attitudes, and intentions about a brand. Brands with high levels of awareness and strong, favorable and unique associations are high equity brands.

All of these calculations are, at best, approximations. A more complete understanding of the brand can occur if multiple measures are used.

Positive brand equity vs. negative brand equity

Brand equity is the positive effect of the brand on the difference between the prices that the consumer accepts to pay when the brand known compared to the value of the benefit received.

There are two schools of thought regarding the existence of negative brand equity. One perspective states brand equity cannot be negative, hypothesizing only positive brand equity is created by marketing activities such as advertising, PR, and promotion. A second perspective is that negative equity can exist, due to catastrophic events to the brand, such as a wide product recall or continued negative press attention (Blackwater or Halliburton, for example).

Colloquially, the term "negative brand equity" may be used to describe a product or service where a brand has a negligible effect on a product level when compared to a no-name or private label product.

Family branding vs. individual branding strategies

The greater a company's brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage the equity accumulated in the core brand. Aspects of brand equity include: brand loyalty, awareness, association[14] and perception of quality.

Examples

In the early 2000s in North America, the Ford Motor Company made a strategic decision to brand all new or redesigned cars with names starting with "F." This aligned with the previous tradition of naming all sport utility vehicles since the Ford Explorer with the letter "E." The Toronto Star quoted an analyst who warned that changing the name of the well known Windstar to the Freestar would cause confusion and discard brand equity built up, while a marketing manager believed that a name change would highlight the new redesign. The aging Taurus, which became one of the most significant cars in American auto history, would be abandoned in favor of three entirely new names, all starting with "F," the Five Hundred, Freestar, and Fusion. By 2007, the Freestar was discontinued without a replacement. The Five Hundred name was thrown out and Taurus was brought back for the next generation of that car in a surprise move by Alan Mulally.

In practice, brand equity is difficult to measure. Because brands are crucial assets, however, both marketers and academic researchers have devised means to contemplate their value.[10] Some of these techniques are described below.

Global Marketing Strategies: 1 Build a strong, consistent brand cultureIn the past, a rigid corporate structure was an important element of the global brand. Local markets were in charge of developing their own brand strategies.

However, in recent years building a consistent and strong brand culture that remains familiar to consumers wherever it is in the world has become a priority. Tony Effik, chief strategy officer at Publicis Modem, explains: A brand needs a single view of the world, a single philosophy.

The rise of digital channels has shifted the brand emphasis from structure to culture, believes Neil Taylor, creative director at language consultancy The Writer. He notes: Social media and viral marketing stop brands doing what they used to do, which was to manage brands in a command-and-control sort of way.

It becomes more important that your brand reflects your culture, rather than your guidelines. The brands that have done it well are those that have a strong culture of their own, says Taylor. ASmallWorld is an example of a business that has created a brand which is consistent around the globe (see case study below).

Language is an important element in ensuring a consistent brand culture, he adds, citing Innocent Drinks as a good example of a company that has successfully retained a distinctive tone of voice across markets. You read Innocent Drinks in French and it feels just as playful and cute as Innocent in English. Its the same personality.

2 Be borderless in your marketingWith the abundance of digital platforms, it is no longer possible for brands to follow different brand strategies in different countries. Companies are being forced to adopt a more unified marketing approach.

Marketers need to rethink the term glocal, explains Publicis Modems Tony Effik. Theodore Levitts think global, act local slogan doesnt work in a digital age in the same way, he argues. The way we do global campaigns had to change because digital doesnt respect borders, particularly now with social media. What were finding is that as content moves across borders, brand stories are crossing over internationally.

3 Build yourself an internal hubThe need for a unified marketing team is more important than ever. Involving marketers from across the global brand in the overall marketing strategy will engender overall cohesion, says Kip Knight, president of Knight Vision Marketing, who has set up marketing academies for global heavyweights such as PepsiCo and eBay while working at those companies.

He says: It doesnt work to simply hand somebody a strategy and say, well good luck with that. They have to feel like theyve had a chance to vet it, to debate it, ideally in person, with others that are equally responsible for the brand. Ultimately, theyve got to feel like they own it. Its not my strategy; its our strategy.

By taking this approach, marketers are much more likely to focus on the same goals for the brand, as opposed to feeling like theyve got to go and create their own version of this brand in the market, he adds.

4 Adopt a glocal structureTwo major global brands have recently challenged the local marketing structure that had become the norm. Instead they are adopting a more regional structure in a bid to become more unified.

Coke has scrapped its GB marketing director and simplified its operations in Europe by reducing the number of business units it has from ten to four.

Similarly, Kraft has decided that while a GB marketing director position will exist, marketing will be led centrally from Europe.

A spokesperson for Coca-Cola explains: The restructuring of marketing is simply part of this wider process. The changes will enable us to innovate more quickly and accelerate the increased coordination in our marketing already taking place in Europe and globally.

The ability to be both global and local is paramount for successful international campaigns, explains Wendy Clark, senior vice-president integrated marketing communications and capabilities at Coca-Cola. Coca-Cola has a legacy of leveraging global scale and local relevance. And we know how important it is to balance both.

The FIFA World Cup Campaign, and Cokes global Open Happiness campaign are examples of how its marketing works on a global scale. They are created so that they work across all territories, she adds.

5 Make consumers your co-creatorsDurexs Valle thinks that social media has helped to create the perfect environment for interactions. Its all about consumers advising each other, talking to each other, as well as talking to the brand. It all happens on a global scale and it all happens at the same time.

Consumers are creating virals and content for Durex, which then becomes widely available across the internet.

We cant have the illusion that because we are the manufacturers or the industry that we have control because that isnt the case anymore. What makes the difference is the degree of partnership. If we talk about a new way of operating or a new global brand, it will be a brand that is asking for opinion, that listens to consumers and asks for co-creation.

Cokes Clark agrees that making space for consumers is now a must. At Coca-Cola, were changing with our consumers. Were moving from polishing our content to perfection to leaving room for our consumers to add their voice.

Brand Audit:

WHAT IS A BRAND AUDIT ?Abrand audit is a thorough examination of a brands current position in the market compared to its competitors and a review of its effectiveness. It helps you determine the strength of your brand together with its weaknesses or inconsistencies and opportunities for improvement and new developments.

WHY DO A BRAND AUDIT ?Strong brands make more money. The stronger your brand, the more powerful your business. A powerful brand can inspire, captivate and engage your audience and consequently dramatically increase your bottom line. However, even strong brands need a reality check or health check to keep them on track.

A robust, consistent brand means you spend less money attracting new customers. Your current customers keep coming back to you and you are able to charge a premium price for your goods and services. A powerful brand also encourages referrals, be they online in the social engagement arena or offline in physical form, and are consequently a critical part of the brand and its profitability.

WHAT ARE THE DELIVERABLES OF A BRAND AUDIT ?Essentially a brand audit will reveal how the customer perceives the brand, how the brand compares to the competition and how the brand has performed. The outputs will typically support the following:

Improve and refocus brand management efforts and congruency

Enhance internal staff brand awareness

Sharpen marketing communications both on and offline

Provide insight into your brand architecture, business structure and brand portfolio

Evaluate and refocus your brand positioning Ensure your brand collateral is congruent and delivers return on investment

Provide direction for your brand into the future

Secure and grow the value of your brand/business through consistent implementation of recommendations derived from brand audit findings

WHAT'S INVOLVED IN A BRAND AUDIT ?Wheninitiating a brand audit its important to define the brand audit objectives. A brand audit is typically a bespoke service because there are so many different components to an actual audit, all of which may not be relevant or required to conduct an appropriate evaluation of your brand performance.

The depth and extent of a brand audit is largely determined by the size of the brand, organisation, market, timescales and budget together with the size and power of your brand relative to the business and market in which you operate.

Brand Leverage

(Brand Leveraging) broadening a company's product range by introducing additional forms or types of products under a brand name which is already successful in another category. Also called Product Leveraging, Brand Extension and Franchise Extension.

Role of Brand Manager

Instilling a marketing led ethos throughout the business

Researching and reporting on external opportunities

Understanding current and potential customers

Managing the customer journey (customer relationship management)

Developing the marketing strategy and plan

Management of the marketing mix

Managing agencies

Measuring success

Managing budgets

Ensuring timely delivery

Writing copy

Approving images

Developing guidelines

Making customer focused decisions

Arguments for Provides confidence to buyers: Consumers of all types and areas are today aspiring for quality of life as a consequence of the development schemes of government and NGOs. The literate and illiterate, the urban and rural, men and women prefer to buy branded products. Even the poor prefer branded shampoos and hair oils sold in small volume sachets. To customers, brands symbolize quality. They think the perceived risk in buying will be lower.People are confident in buying brands like Lux, Lifebuoy, Fair& Lovely, Horlicks, Boost, Bournvita, Parachute, Navaratna, Sunsilk, Clinic plus, and Meera. Provides distinguishing identity: A brand name gives identity to a companys product. It helps recognition and processing jobs easy for the company, distributors and consumers. It thus saves costs and time in manufacturing, warehousing, transporting and order processing for the company when selling. Distributors can reap similar benefits in handling the products and selling them. Consumers find it easy to spot and select the product. eople can distinguish Coca cola, Pepsi and Thumsup. Though all of them are cola drinks, they differ in packaging and taste. Image gives competitive advantage: Brands earn recognition and reputation by their performance. The image helps the existing products in the line as well as new products. It gives a commanding position to the marketer to charge higher prices than competitors and to convince distributors to carry the products. Organisations interested in quality office furniture buy from Godrej. Men interested in buying quality suits buy from Raymond. Women interested in quality jewellery, buy from Tanishq.

Personality attracts consumers: Brands in course of their association with consumers develop personalities. Advertisers take this opportunity to match the personality of brands with that of prospects. It helps build brand loyaltya lasting companionship, a strong bondage between a brand and consumer. Marketers create a personality for the brands they sell. Raymond talks about complete man. Fair& Lovely presents woman as an achiever. Pleasure scooty of Hero Honda asks why boys should have all the fun and presents a liberated young girl.

Enhances value: By their popularity, brands not only enhance their value-in-use but also value-in-exchange. A company that has built brand image over a period of time by its incessant innovative efforts gets a reward for example, premium price offer for its brand from a competitor or interested entrepreneur willing to own it. Allows buying inertia-In industrial markets, quality, price and service are vital but in practice there is one over-riding issue which is seldom mentioned as a reason for choosing a company - that is because we have always bought from that company. Just consider the number of years people in industry have used the same companies as their main suppliers. It is not unusual for a supplier to have been used for five, ten or even twenty years. Arguments Against Category competition: Most of the Indians are price conscious. As such, the competition is more of categories rather than brands. 70% of the population living in villages are less literate and gullible. As such, branded products are not affordable to many. The real competition is not among brands but categories. Notion of high prices: The common notion prevalent among rural and mid income consumers is branded products are high-priced ones. As such, they shun brands. Investment-returns doubtful: Brand building is not an easy task. It requires a great deal of long range investment. It is to be supported by R & D investment, advertising budget and dealer discounts. However, there is no assurance of returns. Many brands have failed. Many are struggling hard despite the good images they have built over a time. Image and personality are emotional nonsense: All the talk about brand personality and image are psychological fantasies created by marketers. No product sells on brand name. Only when it fulfils a need, does it stay and succeed in the market. The image of a product or brand cannot help other brands. When a person buys the product, the overriding considerations are cost (price and operational economics) and functional benefits Brand equity is sensible but not new: The brand equity concept replaces the old term good will. It is not something new to be argued in favour of a brand. It is the outcome of business built over a period. People trust Tata companies, Godrej, Mafatlal etc., as they were operating long since and offering reasonably good products. Customers prefer to buy from a local retailer who is known and sometimes buy on his or her recommendation.

CASE STUDYTesco Goes High TechMoving up the value chain, it is now crafting products that will transform Tescos global business, especially developing mobile applications that drive online sales.

There are a variety of mobile applications being developed from Tesco HSC. Tesco has launched mobile grocery applications on the Android, iPhone, iPad, Nokia and Windows 7 platforms to enable the customer to shop while being mobile. These apps are engineered and maintained at the Tesco HSC, Sandeep Dhar, CEO said.

The Android application was developed completely by the Tesco HSC mobile engineering team and they have been involved in all feature releases after the initial release. The iPhone app is the first Tesco mobile app and has seen more than two million downloads since its launch. The mobile engineering team at the Bangalore centre has grown to 20 from zilch in less than a years time.

Mobile commerce is a growing segment and is an additional channel of shopping for our customers. In terms of sales, 8% of our online grocery orders touch a mobile phone with about half these orders being completed 100% on the phone. Looking at e-commerce as a whole, Tesco is UKs largest online retailer processing over five lakh orders a week, Dhar says. Since 2004, Tesco HSC - that now houses 6,000 people - has provided the technology and services backbone for a $100-billion business that serves 60 million customers.

India provides support to Tesco operations in the UK, the US, major European countries and growth markets such as Turkey, South Korea, Thailand and China. The shift from just a support base to one that manages mission-critical IT applications came a few years ago. Contributions out of the centre are now aligned to business goals of Tesco, says Dhar.

For example, he says, Tesco has deployed cutting-edge paperless picking technology at its warehouses: Employees entering the mammoth

distribution centres use a wrist device that could be swiped at the entrance of these warehouses. On swiping, each employee is given a task list for selection of a particular product from a warehouse section and the information regarding the store to which the products need to be delivered. Tesco HSC delivered the software and then ran this function.

Tescos global parent saves up to $100 million every year by outsourcing tech work to India. And it is this service centre that was responsible for implementing the Tesco Operating Model (TOM) in 2008 that lies at the heart of the companys global drive and consequent growth.

While Indias IT success story has spawned several instances where strategic moves have been supported from India, Tescos is a first in retail where business processes (and technology) meant for global implementation have been provided for, and sustained out of an India back-office centre, says Dhar. As a result, stores from China to the US use the same technology and process for buying merchandise, billing customers and managing stores.

Tescos local centre has become a successful global player in technology as it realised that the talent model is an important lever for captives to optimise in support of future growth. This means aligning its talent model to building a global pool of end-to-end IT skills and domain knowledge.

We have continued to build a strong workforce that is on the cutting edge of future retailing concepts with the ability to develop and enhance retail solutions based on functional and technical expertise. Our investment in talent development programmes has resulted in positive scores on employee surveys that confirm employee engagement is a leading indicator of our overall business success, he says. Dhar is excited about future applications coming out of the centre.

A user-friendly feature is bar code scanning support. You can now scan any grocery item with your iPhone and it will be automatically added to your Tesco Online shopping basket. Right where the user sees an interesting product - at a friends place or on a train - she can scan the bar code and add the product to the basket, buy it immediately or later.