Customer Behavior & Branding€¦ · takeover of Hutch by Vodafone in India. • This ad retains all the typical ad elements of Hutch such as the music, the pug, and the visuals to

www.drvkumar.com© Dr. V Kumar

Customer Behavior & Branding Course 21 BPGPpro 2018-19

V. Kumar, PhDRegents’ Professor,

Richard and Susan Lenny Distinguished Chair & Professor of Marketing, Executive Director, Center for Excellence in Brand & Customer Management,

and Director of the Ph.D. Program in MarketingJ. Mack Robinson College of Business, Georgia State University, Atlanta GA

andChang Jiang Scholar, HUST, Wuhan China.

Fellow, Hagler Institute for Advanced Study, TAMU, College Station, TX Senior Fellow, Indian School of Business, India

Brand ManagementOnline Module ‐ Level 2

1


Whatyouwilllearninthissection…

2

Whataretheelementsofbuildingeffectivebrands?

Howdocompaniesnameanddevelopbrands?

Whatstrategiesareusedtomanagebrands?


BuildingEffectiveBrands

3

MODULE1


WhatDoesEffectiveBrandBuildingInclude?

4

1. Naming Brands

2. Developing Brands

3. Managing Brands

4. Enhancing Brands

EFFECTIVEBRANDING


BrandNames

Likeanybrandelement,brandnamesmustbechosenwiththesixgeneralcriteriaofmemorability,meaningfulness,likability,transferability,adaptability,andprotectability inmind

5

EFFECTIVEBRANDING

Think about how the following brands fare on the 6 general criteria…


HowDoCompaniesNameBrands?Itdependsonthetypeofbrand…

6

FamilyBrands

ProductLineBrands

IndividualBrands

EFFECTIVEBRANDING

www.drvkumar.com© Dr. V Kumar 7

FamilyBrands•Firmusesitscorporatenametobrandallproducts•AlsoknownasUmbrellaBranding•Branddevelopmentcostsarelower•Canleadtogreaterintangiblevalueforthefirm•E.g.SamsungandTatauseasinglebrandforalltheirproductlines

EFFECTIVEBRANDING

Namingbrandsaccordingtotypeofbrand…


•Firmusesacombinationofthecompany&productlinenamestobrandproducts•Firmsusesdifferentbrandnamesfordifferentqualitylineswithinthesameproductclass•Corporatenamelegitimizes&individualnameindividualizestheproduct•E.g.Kellogg’sandDellusethistypeofbrandingapproach

ProductLineBrands

EFFECTIVEBRANDING

Namingbrandsaccordingtotypeofbrand(contd)…


•Firmchoosestobrandtheproductsbynotlinkingittotheparentbrand•Incaseofproductfailure,theparentbrandisnotseverelyaffected•E.g.UnileverandP&Gmarketproductslikedetergents,personalcareproducts,babycare,andhealthandwellnessproductsundervariousbrands

IndividualBrands

EFFECTIVEBRANDING

Namingbrandsaccordingtotypeofbrand(contd)…


BrandNamingGuidelinesBrandAwareness

– Simplicityandeaseofpronunciationandspelling

– Familiarityandmeaningfulness– Differentiated,distinctive,anduniqueness

10

EFFECTIVEBRANDING

BrandAssociations– Theexplicitandimplicitmeaningsconsumersextractfromitareimportant

– Inparticular,thebrandnamecanreinforceanimportantattributeorbenefitassociationthatmakesupitsproductpositioning


BrandNamingProcedure

Defineobjectives

Generatenames

Screeninitial

candidates

Studycandidatenames

Researchthefinalcandidates

Selectthefinalname

11

EFFECTIVEBRANDING


BrandDevelopment

12

MODULE2


HowDoCompaniesDevelopTheirBrands?

13

LineExtension BrandExtension

Multibrands NewBrands

Existing

Existing

New

New

BrandName

ProductCategory

• Line extensions are existing brand names extended to new forms, sizes, & flavors

of an existing product category

• Brand extensions are existing brand names extended to new product categories

• Multibrands are new brand names introduced in the same product category

• New Brands are new brand names in new product categories

BRANDDEVELOPMENT


DevelopingBrandsLine Extensions

•Purpose:– Low-cost, low-risk way to introduce new products to meet consumer needs for variety

–Utilize excess capacity, or acquire more shelf space from resellers–Works best when it takes sales away from competitor offerings

•Problem: –May cause brand confusion among consumers–Cannibalize other brands in the line

14

BRANDDEVELOPMENT


DevelopingBrands(contd.)Brand Extensions

15

•Purpose: –Gives a new product instant recognition and quicker acceptance–Saves ad expenses usually required to build a new brand name

•Problem:– Extensions into unrelated categories or with confusing image can lead to failures (e.g., Heinz pet food, Gap Warehouse)

– Failure may also harm other products under the same brand

BRANDDEVELOPMENT


DevelopingBrands(contd.)Multibrands

•Purpose:– Establishes different features to appeal to different buying motives–Protect its major brand by setting up flanker or fighter brands

•Problem:– Each brand may get only a small market share–Company may spread its resources over many brands instead of specific ones

16

BRANDDEVELOPMENT


DevelopingBrands(contd.)New Brands

•Purpose: – Entering a new product category that is currently not offered–May be to improve its diminishing brand image from existing brands–May be through acquiring brands

•Problem:–Company may spread its resources over many brands instead of specific ones

– Insufficient differentiation among competing brands

17

BRANDDEVELOPMENT


BrandingStrategy

18

MODULE3


So,whatstrategiesareusedtomanagebrands?

Offensivevs.DefensiveBrandStrategies

BRANDINGSTRATEGY


CriteriaforChoosingBrandElements

• Memorability• Meaningfulness• Likability

Marketer’soffensivestrategyandbuildbrandequity

• Transferability• Adaptability• Protectability

Defensiveroleforleveragingandmaintainingbrandequity

20

BRANDINGSTRATEGY


OffensiveBrandStrategy

Offensivestrategyforbuildingbrandequity• Memorability• Meaningfulness• Likability

21

BRANDINGSTRATEGY


Memorability

• Brandelementsshouldinherentlybememorableandattention‐getting,andthereforefacilitaterecallorrecognition.

• Forexample,abrandofpropanegascylindersnamedBlueRhinofeaturingapowder‐blueanimalmascotwithadistinctiveyellowflameislikelytostickinthemindsofconsumers.

22

BRANDINGSTRATEGY


Meaningfulness

• Brandelementsmaytakeonallkindsofmeaning,witheitherdescriptiveorpersuasivecontent.

• Twoparticularlyimportantcriteria– Generalinformationaboutthenatureoftheproductcategory– Specificinformationaboutparticularattributesandbenefitsofthebrand

• Thefirstdimensionisanimportantdeterminantofbrandawarenessandsalience;thesecond,ofbrandimageandpositioning.

Can you think of any meaningful brands?

23

BRANDINGSTRATEGY


Likability• Docustomersfindthebrandelementaestheticallyappealing?• Descriptiveandpersuasiveelementsreducetheburdenonmarketing

communicationstobuildawareness.

The Case of Mountain Dew Code Red• In 1998, a cross-functional team of 35 people from 7 departments of PepsiCo

worked on developing a new product

• Considered several possibilities: Dew H2O bottled water, Dew Unplugged decaf Mountain Dew, a Mountain Dew sports drink, and a new Dew flavor.

• Team settled on a new flavor – Mountain Dew Code Red and launched in May 2000

• Used radio, outdoor advertising, sampling and in-store merchandising extensively

• Marketed to urban consumers

• Attracted a rabid fan base. According to A.C. Nielsen, Code Red tested in the top 5% of all new product concepts ever tested among teens

• By July 2000, Code Red was the 5th best selling soft drinks sold at convenience stores and gas stations. (Mountain Dew is number one)

• Code Red helped boost net sales of PepsiCo by 20% that quarter

24

BRANDINGSTRATEGY


DefensiveBrandStrategy

Defensivestrategyforleveraging&maintainingbrandequity• Transferability• Adaptability• Protectability

25

BRANDINGSTRATEGY


Transferability

• Howusefulisthebrandelementforlineorcategoryextensions?

• Towhatextentdoesthebrandelementaddtobrandequityacrossgeographicboundariesandmarketsegments?

26

BRANDINGSTRATEGY

AmassiveSouthAmericanriverandtherefore,widevarietyofproducts

Namecreatedbyjoining'Tan'meaningbody,and'Nishk'meaningagoldornament


Adaptability• Themoreadaptableandflexiblethebrand

element,theeasieritistoupdateittochangesinconsumervaluesandopinions.

• Forexample,logosandcharacterscanbegivenanewlookoranewdesigntomakethemappearmoremodernandrelevant.

27

BRANDINGSTRATEGY


ProtectabilityMarketersshould:1. Choosebrandelementsthatcanbelegallyprotectedinternationally.2. Formallyregisterchosenbrandelementswiththeappropriatelegal

bodies.3. Vigorouslydefendtrademarksfromunauthorizedcompetitive

infringement.

Molson Ice, one of the early entrants in the ice beer category, lost advantage from a branding standpoint to Miller Ice (later became Bud Ice) when it was introduced.

28

BRANDINGSTRATEGY


Inadditiontonaming,developing,andmanagingbrands,howdofirmsenhance brands?

BRANDINGSTRATEGY


Tacticsforenhancingsuccess:brandelements

Avarietyofbrandelementscanbechosenthatinherentlyenhancebrandawarenessorfacilitatetheformationofstrong,

favorable,anduniquebrandassociationssuchas:

Brandnames

URLs

Logosandsymbols

Characters

Slogans

Packaging

30

BRANDINGSTRATEGY


URLs

• URLs(uniformresourcelocators)specifylocationsofpagesonthewebandarealsocommonlyreferredtoasdomainnames.

• AcompanycaneithersuethecurrentowneroftheURLforcopyrightinfringement,buythenamefromthecurrentowner,orregisterallconceivablevariationsofitsbrandasdomainnamesaheadoftime.

31

BRANDINGSTRATEGY


LogosandSymbols

• Playacriticalroleinbuildingbrandequityandespeciallybrandawareness

• Logosrangefromcorporatenamesortrademarks(wordmarkswithtextonly)writteninadistinctiveform,toentirelyabstractdesignsthatmaybecompletelyunrelatedtothewordmark,corporatename,orcorporateactivities

32

BRANDINGSTRATEGY

Can you identify the following brands?


Characters• Aspecialtypeofbrandsymbol—onethattakesonhumanorreal‐life

characteristics

• SomeareanimatedlikePeterPanpeanutbutter’scharacter,andnumerouscerealcharacterssuchasCap’n Crunch,andSnap,Crackle&Pop

• Othersarelive‐actionfigureslikeJuanValdez(Colombiancoffee),andtheMaytagrepairman.NotablenewcomersincludetheAOLrunningman,theBudweiserfrogs,andtheAFLACduck

33

BRANDINGSTRATEGY

Can you identify the brands associated with the following characters?


Slogans• Slogansareshortphrasesthatcommunicatedescriptiveorpersuasiveinformationaboutthebrand

• Slogansarepowerfulbrandingdevicesbecause,likebrandnames,theyareanextremelyefficient,shorthandmeanstobuildbrandequity

Can you identify the following slogans?

34

BRANDINGSTRATEGY


Jingles

• Jinglesaremusicalmessageswrittenaroundthebrand.Typicallycomposedbyprofessionalsongwriters,theyoftenhaveenoughcatchyhooksandchorusestobecomealmostpermanentlyregisteredinthemindsoflisteners—sometimeswhethertheywantthemtoornot!

• Jinglesareperhapsmostvaluableinenhancingbrandawareness.

Hamara Bajaj! Taste the Thunder!i'm lovin' it

35

BRANDINGSTRATEGY


Source: https://www.youtube.com/watch?v=snsywkGOJ5o

• When done correctly, jingles can also be used to communicate important changes such as management changes.

• This ad jingle does a great job of communicating the takeover of Hutch by Vodafone in India.

• This ad retains all the typical ad elements of Hutch such as the music, the pug, and the visuals to ensure that the consumers do not feel ‘left out’ during the management change.


Packaging• Fromtheperspectiveofboththefirmandconsumers,packagingmust

achieveanumberofobjectives:– Identifythebrand– Conveydescriptiveandpersuasiveinformation– Facilitateproducttransportationandprotection– Assistat‐homestorage– Aidproductconsumption

37

BRANDINGSTRATEGY


WhatcanPackagingInfluence?Taste• Oursenseoftasteandtouchisverysuggestible,andwhatweseeonapackagecanleadustotastewhatwethinkwearegoingtotaste.

Value• Longafterwehaveboughtaproduct,apackagecanstillleadustobelieveweboughtitbecauseitwasagoodvalue

Consumption• Studiesof48differenttypesoffoodsandpersonalcareproductshaveshownthatpeoplepourandconsumebetween18%and32%moreofaproductasthesizeofthecontainerdoubles

Howapersonusesaproduct• Onestrategytoincreaseuseofmatureproductshasbeentoencouragepeopletousethebrandinnewsituations,likesoupforbreakfast,ornewuses,likebakingsodaasarefrigeratordeodorizer

• Ananalysisof26productsand402consumersshowedthattwiceasmanypeoplelearnedaboutusesfromthepackagethanfromtelevisionads

38

BRANDINGSTRATEGY


LinkingBrandEquitytoBrandIdentity

39

MODULE4


Howdoesitallworksimultaneously?

BrandElement

Criterion BrandNames&URLs

Logos&Symbols Characters Slogans &

JinglesPackaging&Signage

Memorability Forbrandrecall&

recognition

Forbrandrecognition

Forbrandrecognition

Forbrandrecall&recognition

Forbrandrecognition

Meaningfulness Forbrandassociation

Forbrandassociation

Forbrandpersonality

Forbrandassociation

Forbrandassociation

Likability Forverbalimagery

Forvisualappeal

Forhumanqualities

Forverbalimagery

Forvisual&verbalappeal

Transferability Limited Excellent Limited Limited Good

Adaptability Difficult Redesignpossible

Sometimesmodified

Canbemodified

Redesignpossible

Protectability Good Excellent Excellent Excellent Poor

40

BRANDINGSTRATEGY


PuttingItAllTogether:BrandIdentity

• Theentiresetofbrandelementsmakesupthebrandidentity, thecontributionofallbrandelementstoawarenessandimage

• Thecohesivenessofthebrandidentitydependsontheextenttowhichthebrandelementsareconsistent

41

BRANDINGSTRATEGY


Level2 Completed!

Documents

Customer Behavior & Branding€¦ · takeover of Hutch by Vodafone in India. • This ad retains all the typical ad elements of Hutch such as the music, the pug, and the visuals to