Brand Management 210810

8/8/2019 Brand Management 210810

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` Brand Equity

` Brand Identity


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` Brand Equity It is a set of assets (and liabilities) linked to a brands

name and symbol that adds to (or subtracts from) the

value provided by a product or service to a firm and/ or

that firms customers. The major asset categories are:

x Brand Name Awareness

x Perceived Quality

x Brand Loyalty

x

Brand Association


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` Brand recognition Awareness and recall

Recognition does not involve

x Remembering where seen

x Remembering why it differs

` Brand Recall Associate brand with product category

The brand graveyard

` Brand Name Dominance Xerox

Kleenex

Escalator 1859 (Motor stair, electric stairway, moving

stairs)


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` Creating awareness Expensive so large brands tend to grow parent brand.

Use of new channels can lead to increased awareness

Get consumers to recall the brand for the right reasons


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Niche Brand

Graveyard

Recall

High

Low

Low High

Re

cogni

tio

n


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` Perceived quality drives financial performance

` Quality as a strategic thrust

` Perceived quality as a measure of Brand

Goodness` Create perception of quality

Define what quality means to a customer

Customer may not see areas of improvement in quality

Customers do not have time to do complete evaluationso using the right influences is important.


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` Loyalty and Brand Value Creates sales from loyal customers lifetime value of

customer

Costs less to retain customers than attract new ones

Creates an entry barrier to competitors

` Loyalty segmentation Non customers

Price switchers

Passively loyal

Fence sitters

Committed


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` Enhancing Loyalty Frequent Buyer program

Customer clubs

Database marketing


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` Symbol

` Celebrity

` Product features


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` Building Strong Brands why is it hard? Pressure to compete on price

Increase in competitors

Fragmentation of Markets and media

Complex brand relationships and strategies

Bias towards changing strategies

Bias against innovation

Pressure to invest elsewhere

Short term Pressures


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` Pressure to compete on price Strong retailers

Value sensitive customers

Reduced growth in each category

Overcapacity

` Increase in competition More number of competitors

Less market options open

x Drinks water, carbonated, juice, mixes, concentrates

Difficult to hold on to customers

New competitors take unusual steps


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` Fragmentation of media and markets

`

Complex Brand Strategies Earlier create a brand and it would get established

Now more complex many companies create sub brands

coke, coke light, caffeine free coke, etc

Need a clear vision of brand identity

` Bias towards changing strategies Change of brand identity


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` Bias against innovation Like to keep the same competitive scenario

Not to change any thing about the product or services

Creates a problem if there is an aggressive competitor

x Weight watchers vs Healthy choice

` Pressure to invest elsewhere Strong brands tend to reduce market spend

Invest this elsewhere Xerox


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` Short term pressures Quick return

Quick profits


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` Brand Identity It is a unique set of brand associations that the brand

desires to create or maintain. These associations

represent what the brand stands for and imply a promise

to the customers from the organisation

Brand identity structure includes a core and extended

identity


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` Brand Identity Traps Brand Image trap

Brand Position trap

External Perspective trap

Product attribute fixation trap


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` The Brand Image Trap Here the brand image becomes the brand identity

The Brand image should be only one of the inputs to be

considered for brand identity. This trap lets the customer dictate how he wants to see

the brand

Brand image is passive it sees the past (how the

customers see the brand) while Brand identity looks at

future (how the brand must be seen by customers)


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` Brand Position trap Brand position is that part of the Brand identity and value

proposition that is actively communicated to the target

audience and demonstrates an advantage over

competing brands

The problem occurs when the brand identity and brand

position are confused with each other


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External Perspective trap When organisations fail to understand the basic values

and purpose of brand identity

The internal communication of brand identity is not clear


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Product attribute fixation trap Tactical and strategic management of brand is focused

only on product attributes

` A Brand is more than the product


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` A Brand is more than the product

Product

Scope

Attributes

Quality

Uses

Brand Personality

Emotional Benefits

Symbols

User Imagery

Brand Customer

Relationship

Organisational

Associations

Country of

Origin

Brand

Product


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` Limitations of Product Attribute Based Identities They do not differentiate

They are easy to copy

The customer is not a rational buyer

They limit brand extension strategies

Reduce strategic flexibility


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` Four Brand Identity perspectives To help brand manager to view different elements and

patterns in creating identity

Not all brands need to use all four

` These perspectives are Brand as a Product

Brand as an Organisation

Brand as a Person

Brand as a Symbol


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` Brand as a Product Association with product class

x Visa with credit cards

x Compaq with computers

x Band Aid with adhesive medicated tapes

x Issue arises when product class is expanded

x Initially HP had only HP Jet line for printers

x With Scanners and fax machine inclusion it was modified to

Scanjet and Fax Jet

x With the combination of all three (printer, scanner and fax) it

became office jet


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` Brand as a Product Product related Attributes

x Can create a value proposition by offering something extra

or better

x McDonalds worldwide consistency of product

x Wal-Mart consistent value for money products

Quality/ Value

x

A product related attribute important enough to considerseparately

x Quality is linked to price

x It is also product superiority


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` Brand as a Product Association with use occasion

x Some brands get associated with a use occasion

x Band-aid, Xerox,

Association with users

x To position a brand by type of user

x VLCC, Johnson's (baby products)

Link to a country or a region

x Linking to a country may add value

x Japanese products had value in electronics

x Germany in engineering products


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` Brand as an Organisation Focuses on organisational attributes rather than product

or service like

x Innovation

x Desire for quality if based on organisational culture rather

than on product attribute

x Concern for environment

These are usually for a set of product classes


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` Brand as a Personality Suggests the brand is more than just product attributes

It like a person and has communicate with the customer

in many human ways

It can help create a relationship with its customers


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` Brand as a Symbol They make it easy to recognize and recall

They are powerful and are easily remembered

Nike Swoosh, McDonalds Golden Arches, Mercedes

Benz 3 point emblem


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Str tegi r A lysis

Customer A lysis

Trends

Motivation

Unmet Needs

Segmentation

Competitor A lysis

Brand Image/ Identity

Strengths &

Strategies

Weaknesses

Self A lysis

Existing Brand Image

Strengths and

weaknesses

Organizational Values

RAND IDENTITY PLANNING MODEL


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Brand Id ntit

Brand a a

Product

Brand a an

Or anization

Brand a a

P r on

Brand a a

S mbol

Product scope

Product

attributes

Quality/ value Uses

Users

Organisation

attributes (eg

Innovation,

trustworthy, etc) Local vs Global

Personality

(genuine,

energetic,

rugged, etc) Brand

Customer

relationship

Visual imagery

Brand heritage

Valu propo ition Brand Cu tom r

R lation hip

Cr dibilit

Functional Benefits

Emotional Benefits

Self Expressive

benefits

Relationship Credibility with

customer

CoreExtended

Brand Identity System


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Brand Id ntit Impl m ntation

Brand Position

Subset of brand identity and value proposition

At a target audience

To be actively communicated

Providing a competitive advantage

Ex cution

Generate alternatives

Symbols and metaphors

Testing

Trackin


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` Brand Identity Core Identity

Extended Identity

` Identity elements are organised into enduring

patterns of meaning usually around Core Identity


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` Core Identity Timeless essence

Core that remains after you peel outer layers like an

onion

The core identity is central to meaning and success of

the brand remains constant even if brand moves to other

countries/ locations

x Lifebuoy Tandurusti ki raksha

x

Dettol 100% protectionx Nike Sports and Fitness


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` Core identity comes from the answers to What is the soul of the brand

What are the fundamental beliefs and values that drive

the brand

What are the competencies of the organisation behind

the brand

What does the organisation behind the brand stand for?


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` Core identity should contain elements that make

the brand Unique

Valuable


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` The Extended Identity It includes the texture and completeness

It add the details that help understanding the brand

It has the important elements of the marketing program

visible aspects


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` McDonalds Core Identity

x Value Offering: Value for money

x Product

x Buying experience given the price

xFood Qualityx Always hot,

x Good tasting

x Consistent across the world

x Service

x

Fast, Accurate, Friendly, Hassle freex Cleanliness

x Clean on both sides of the counter

x Usersx Family and Kids are focussed but serve a wide clientele


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` McDonalds Extended Identity

x Convenience

x Quick service

x

Close locationx Product Scope

x Fast food, Children's entertainment

x Sub Brands

x Big Mac, Happy meals,

x Brand Personality

x Family Oriented, genuine, wholesome, cheerful, fun

x Logo

x Golden Arches

x Character

x Ronald McDonald, McDonald toys and dolls


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` McDonalds Value Proposition

x Functional Benefits

x Good Tasting hamburgers, fries and drinks that provide value

x Extras like playgrounds, prizes, games, etc

x Emotional Benefits

x Kids fun Birthday parties, relation ship with Ronald McDonald

x Feeling of special family times

x Link to family events and experiences reinforced by emotional

advertising


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` Strong Brands have a Cohesive interpretable grouping

We must see how they fit with each other

We must see if they are meaningful or random


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` Brand Personality It is defined as the set of human characteristics

associated with a given brand.

It includes gender, age, socioeconomic class

Also it has human traits like warmth, concern and

sentimentality


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` Brand Personality Apple Young; IBM older

Guess sophisticated ; Wrangler Rugged

Nike Athletic; LA Gear more sophisticaed

` Brand personality stays unchanged with time

` Customers interact with Brands as persons if

brands are attached with meaningful products like

cars, clothes, etc


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` Measuring Brand Personality Demographics

x Age, gender, social class

Life style

x Activities, interests, opinions

Human personality traits

x Extrovert/ introvert, agreeableness, dependability


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` Study conducted in US for Brand Personality

Scale 1000 respondents

60 well known brands

114 Personality traits

` Five Personality traits emerged

` They represent almost 93% of the differences

between brands


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` The 5 personality traits Sincerity

Excitement

Competence

Sophistication

Ruggedness

` Kodak, Hallmark Sincerity

` Levis, Marlboro, Nike Ruggedness


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` However like humans most brands may have

some of more than one factor Nike Sincerity, excitement and competence

McDonalds Sincerity and competence


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` In order to give each of these five personality traits

a texture and a feel some qualifying

characteristics are given


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` Sincerity Kodak, Hallmark Down to earth

x family oriented, Conventional, blue collar

Honest

x Sincere, real, ethical, caring

Wholesome

xOriginal, genuine, ageless, classic

Cheerful

x Sentimental, friendly, warm, happy


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` Excitement Porsche, Nike, Benetton Daring

x Trendy, exciting, off beat, flashy, provocative

Spirited

x Young, lively, outgoing, Adventurous

Imaginative

xUnique, surprising, artistic, fun

Up to date

x Contemporary, innovative, independent


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` Competence CNN, IBM, Amex Reliable

x Hardworking, trustworthy, careful, secure

Intelligent

x Technical, corporate, serious

Successful

xLeader, confident, influential


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` Sophistication Lexus, Mercedes, Rvelon UpperClass

x Glamorous, good looking, pretentious, sophisticated

Charming

x Feminine, smooth, sexy, gentle

` Ruggedness Levis, Nike, Marlboro Outdoor

x Masculine, active, athletic Tough

x Rugged, strong, no nonsense


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` How do we create a Brand Personality Just like a person is affected by everything associated

with the person

x Friends

x Activities

x Clothes

x Manner of interaction

Similarly a brand is also affected by

x

Product characteristicsx Non- product characteristics


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Product R lat d Charact ri tic Non Product R lat d

Charact ri tic

Pr t t r ( )

Package (computer ) Price ( ig azar)

Attri utes ( ( iet Coke)

User Imager ( evis )

ponsorships ymbol ( ike, ettol)

Age ( odak)

Countryoforigin (Audi)

Company image ( odyshop)

C ( ill atesof icrosoft)

Celebrity ndorsement

Brand P r onalit Driv r


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` Why do we use a Brand Personality Better understanding

x Brand manager can get understanding of customer

perceptions of the brand

It contributes to a differentiating identity

x Especially when product attributes are similar

x Canon created Rebel for its performance oriented camera

used in action context

x Use Andre Agassi independent, forceful, colourful


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` Why do we use a Brand Personality Guides Communication effort

x Brand personality concept communicates brand identity

x Helps brand communication, packaging, promotions, which

events to associate with, etc

Creates Brand Equity

x There are three models

x Self Expression Model

x Relationship Basis Model

x Functional benefit Model


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` For some group of customers brands become a

vehicle to express a part of their self identity

` People express self identity in many ways Job choice

Friends

Opinions

Activities

Lifestyles


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` Frugality can be expressed by buying a cheap

brand

` Purchase of a branded product provides a vehicle

to express a lifestyle and personality


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` How the brand helps in expressing personality Feelings created by the Brand Personality

x Just like a person a brand personality has feelings and

emotions

x Kodak warm, empatheticx Harley-Davidson powerful, strong

x Apple fun, innovative, technology

A warm person is more comfortable with a warm brand

Aggressive person will want an aggressive brnad


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` Brand as a Badge It serves as a persons statement

These are visible brands

They can have a significant social impact

Used for cars, clothes, cosmetics

People will judge from labels used the personality

` Brand becomes a part of the self A fulltime biker and his Harley-Davidson An Apple user who uses it all the time

A Nescafe drinker who has a this coffee all day


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` Some people may not aspire to become a

personality but may associate with one

` Consider personality types of persons who you

have relationships with Down to earth, family oriented, genuine, old-fashioned

Sincerity Kodak, Hallmark relationship similar to a

respected family member

Accomplished, influential, competent- (Competence)

Hewlett Packard, Wall street Journal respect for peoplewith accomplishment teacher, business leader


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` Friends Fun and irreverent

Serious and command respect

Some are comfortable to be with

So a focus on friend relationship can convey more than

just a brand personality

People live in a world of stress, alienation and clutter toescape we make meaningful friends


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` If brand speaks to you Natural tendency is to think of a brand as passive

Focus is on consumer perception, attitude and behaviour

towards the brand

Yet our relationships are affected by what the otherperson thinks about us

Some contexts

x Upscale brand with a snobbish feel

x

Performance brands talking down to customersx Power brands flexing their muscle Microsoft, IBM

x Intimidated brands showing their inferiority


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Nostalgic connection

x This brand reminds me of things I have done

x This brand will always remind me of a phase of my life

Intimacy

x I know a lot about the brandx I know a lot about the company that makes the brand

Partner quality

x I know this brand really appreciates me

x This brand treats me like a valued customer

` The first three are similar to brand loyality


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` To identify the part of the identity to be

communicated we Look in to the Core identity

Identify the points of leverage

Look in to the value proposition benefits that driverelationships


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` the Core identity It has the most unique and valuable aspects of the brand

Around each element of the core identity there can be

many brand elements which help us get execution

alternatives Also the communication must include the core identity so

that we do not stray from it


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` Identify points of leverage These are not necessarily linked to the core identity eg.

Ronald Mc Donald

Sometimes a sub brand feature or service can provide a

leverage point.


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` Look in to the value proposition benefits that drive

relationships

Nike functional benefit of improved performance and

A self expressive benefit of using a shoe that is endorsed

by a celebrity player


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Documents

Brand Management 210810