BRAND• A brand is a name, design, symbol, or any

other feature that identifies one seller’s goods or services as distinct from those of other sellers’.

• A legal term for brand is trademark. It identifies one item, a family of items, or all items of a seller. If it is used for the firm as a whole, it is called as trade name

BRAND• Brand as a name : Coca Cola, Pepsi etc• Brand is a term : General Motors• Brand is a design : The design of a chain

of shops. Eg. KFC• Brand is a symbol: Mercedes is

recognized by the symbol

BRAND• CHARACTERISTICS OF A BRAND1.Consistency2.Security3.Other functional and emotional attributes

BRAND• Advantages of a brand

o Helps in identificationo Stimulates the purchase decisiono Creates customer loyaltyo Helps the company to maintain leadership

position• Disadvantages of a brand

o Requires huge investmento Unsuccessful brand will bring negative image to

the company ( Prius by Toyota)o Customer may not be willing to pay higher price

due to the brand name

BRAND EQUITY• Brand equity is the set of assets linked to

a brand’s name and symbol that adds to the value provided by the product or a service to a firm and/or that firm’s customers

• The various components of brand equity are:o Brand loyaltyo Brand awarenesso Perceived qualityo Brand association

BRAND EQUITY• Brand Loyalty

o It is the consumer’s commitment to repurchase a product or service or word of mouth advocacy

o True brand loyalty implies that the consumer is willing to set aside their own desires in the interest of the brand

o This will help the producer to reduce the promotion cost

• Brand Awarenesso The number of customers exposed to the

brand name is called as brand awarenesso Higher the brand awareness, higher will be the

brand equity

BRAND EQUITY• Perceived Quality

o The customer perception about the actual quality level of the product

• Brand Associationso This explains the attribute of the brand that customer

associates with his/her belief. A person may associate the brand for power, strength or protectiveness

BRAND POSITIONING• Brand positioning means the creation of

an image in the mind of the customers• Brand managers use three levels of

positioning strategies to create the image in the minds of the customers. They are:o Product Attributeo Benefit o Beliefs and Values

BRAND NAME SELECTION• Philip Kotler gives six suggestions to create a

successful brand name. They are:o The name should suggests something about the

product benefits and quality . Eg Appy Fizzo Easy to pronounce, recognize and remember. Eg.

GE, 3M, Amulo The name should be distinctive. Eg: VIP, Chivas

Regalo The name should be extendable. Eg. Godrejo Should be easily translated into foreign language . o Should be capable of registration and legal protection

BRAND SPONSORSHIP• There are four options of sponsoring the

brand1.Manufacturer Brand2.Private Brand3.Licensing4.Co-Branding

BRAND SPONSORSHIP1.Manufacturer Brand• Brand owned by manufacturer and promoted

directly and indirectly is called as manufacturer brand

2. Private Brand (Store Brand)• These brands bearing the store name or store

selected vendor name• The basic ingredients of private labels are:a. It must be a unit packageb. Re-labeling

BRAND SPONSORSHIP3. Brand Licensing• It is the legal authorization by the trade marked brand

owner to allow another company to use its brand for a fee. Eg. Hugo Boss, Tommy Hilfiger, Lacoste etc

• The major advantages of licensing are low cost, free publicity and revenue from royalty fee

• The major limitation of branding is lack of manufacturing control

4.Co-Branding• Co-branding is the practice of using the established

brand names of two different companies on the same product

• The major advantage of co-branding is that the co-brand owners can promote brand leverage and can reduce the cost

BRAND DEVELOPMENT• The different strategies applied in brand

development can be shown as follows:

LINE EXTENSION BRAND EXTENSION

MULTI-BRANDS NEW BRANDS

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BRAND DEVELOPMENT1- LINE EXTENSION• Company uses its well known brand name to

introduce items in a given product category such as new forms, flavors, ingredients or package sizes

2-BRAND EXTENSION• A strategy in which company uses one of its

familiar brand names to new product category items

• Brand extension gives instant recognition to the brand

• Brand extension, if it fails, then it may hurt the parent brand reputation in the market

BRAND DEVELOPMENT3-MULTI BRANDS• The technique of introducing the product or items

in existing product category with a new brand name

• Eg. Hindustan Lever – Lux, Lifebuoy, Breeze etc4-NEW BRANDS• The strategy of coming out with new brand for

new category products.• In this strategy, company believes that existing

brands can not be extended to the new category• This require huge resources

PORTFOLIO DESIGN

1-BCG MATRIX or GROWTH SHARE MATRIXM

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P & G Brands ($1Billion)Gillette, variety of razors for men and women, shaving cream for men, body wash for men, shampoo for men, deodorant and anti-perspirant for menHead & Shoulders shampooIams dog and cat foodsOlay Personal and beauty productsOral-B inter-dental products, such as Oral-B GlidePampers & Pampers Kandoo disposable diapers and moist towelettes

P & G Brands ($1 Billion)

Pantene haircare productsTide variety of liquid and powder laundry detergents, stain remover for laundry and stain remover penWella hair care productsFebreze Odor control/Freshener

P & G Brands ($1billion)

Crest toothpasteDawn dishwashing detergentDowny fabric softener and dryer sheetsLenor fabric softenerDuracell batteries and flashlightsFusion five blade cartridge and razors.Gain fresh smelling liquid and powder laundry detergents, liquid fabric softener and dryer sheets