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Brand

• Distinguishing goods of one producer from those of another.

• A product that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need.

• Name, term, logo or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers & to differentiate them from those of competition.

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Brand

• Naming – related (Tata Indica) or unrelated (Tide) to co. name, based on people (Armani), on places (New York Times), on animals/ birds (Dove , Kingfisher, Black Dog), on inherent product meaning (MTV), etc.

A brand could be a physical good (Kellog’s Corn Flakes), a service (Bank of America), a store (Shopper’s Stop), a person (M Jackson, Sachin Tendulkar), a place (Las Vegas, Macau), an organization/group (TCS, Red Cross, Beatles), an idea (Nuclear Disarmament).

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World’s Top Brands

• Nike• Budweiser• Toyota• Nescafe• McDonald’s• Citi• Apple

• Gillette• Coca Cola• Evian• Wal-mart• Google• Ford• Shell

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Brand Significance

To consumers Quality brands:• Assign performance responsibility to the

manufacturer/ marketer

• Save on search costs

• Allow them to project their self-image [Mercedes, Rolex]

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Brand Significance

• Reduce risks – Functional riskFinancial riskSocial risk

To firmsBrands:• Secure a competitive advantage• Are a source of financial returns

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Branding Challenges

Customers are aware about drawbacks:Have info from advertisements, media based prog. (consumer reports, websites like epinions.com, blogs)

High costs of traditional media

More clutter on traditional media

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Branding Challenges

Increased competition:- Brand extensions

[Airtel DTH, Videocon – TataSky]- Privatization [Private insurers & LIC]- Overseas brands [Foreign brands - Existing

brands eg. Maruti Suzuki – Fiat/ Ambassador]

- Low priced competitors (Local players)

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Assignment

Make a list of 5 brands and their competitors

in the Indian market.

What are the challenges that the 5 brands

have?

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Brand Equity

The added value to the firm, the trade or the consumer with which a given brand endows a product.

The sales and profit impact enjoyed as a result of prior years’ marketing efforts versus a comparable new brand.

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Customer Based Brand Equity (CBBE) Model

Objective of the model:

To find out

-what makes a brand strong

-how to build a strong brand

-what brand equity is

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Customer Based Brand Equity (CBBE) Model

- Power of a brand lies in what’s there in the customers’ minds.

- Differential effect that brand knowledge has on consumer response.

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Customer Based Brand Equity (CBBE) Model

Positive CBBE:When the brand is identified

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Customer Based Brand Equity (CBBE) Model

CBBE is based on the differences in the consumer responses that are a function of their knowledge of the brand.

Wills Chancellor Marlboro

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Brand Knowledge

Two components:Brand awareness – identifying brand in different conditions

Brand image – consumers’ perceptions about a brand

Eg. Apple computers – “user friendly”, “fun”, “innovative”.

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Brand Awareness

Two components:Brand recognition – consumer’s ability to confirm prior exposure to the brand when given the brand as a cue. [Reynolds among others]

Brand recall – consumer’s ability to retrieve the brand from memory when given the prod category or needs fulfilled by the category or purchase/ usage situation as a cue. [Amul when you want butter]

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Brand Image

Created by:Marketing programs

Consumer reports

Word of mouth [Amway]

Identification with the co. [TATA], country, channel of distribution, endorser, event.

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HP India’s Brand Strategy

Positive Customer Based Brand equity

Brand knowledge

Brand awareness [brand recognition & recall

(school contact programs, vans in rural areas)

Brand image [marketing prog (‘The computer is personal again’), endorser (Shahrukh Khan)]

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Abercrombie & Fitch

Michael Jeffries joined as CEO in 1992, transformed the conservative men’s clothing co. into a hep casual clothes emporium for 14-24 yr olds.

His approach:• Select good looking college and high school students as

the salespeople to match the lifestyle of its core customer base [charismatic people]

• Eye-catching advertising

Result:The no. of stores increased from 35 to more than 250today.

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AajTak

Started as a different news channel and created an image of ‘Sabse Tez’ against the conservative news channels.Approach:Informal news presentation (style, visuals & language)Opinionated & not report-based content Sensational/ scandalous news titles