Product and Brand Management · 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

www.drvkumar.com© Dr. V Kumar

Brand Management

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

Online CourseLevel 2

(Part of ISB Customer Behavior & Branding PGPpro)

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What you will learn in this section…

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What are the elements of building effective brands?

How do companies name and develop brands?

What strategies are used to manage brands?


Building Effective Brands

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MODULE 1


What Does Effective Brand Building Include?

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1. Naming Brands

2. Developing Brands

3. Managing Brands

4. Enhancing Brands

EFFECTIVE BRANDING


Brand Names

Like any brand element, brand names must be chosen with the six general criteria of memorability, meaningfulness, likability, transferability, adaptability, and protectability in mind

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EFFECTIVE BRANDING

Think about how the following brands fare on the 6

general criteria…


How Do Companies Name Brands? It depends on the type of brand…

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Family Brands

Product Line Brands

Individual Brands

EFFECTIVE BRANDING

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Family Brands

•Firm uses its corporate name to brand all products

•Also known as Umbrella Branding

•Brand development costs are lower

•Can lead to greater intangible value for the firm

•E.g. Samsung and Tata use a single brand for all their product lines

EFFECTIVE BRANDING

Naming brands according to type of brand…


•Firm uses a combination of the company & product line names to brand products

•Firms uses different brand names for different quality lines within the same product class

•Corporate name legitimizes & individual name individualizes the product

•E.g. Kellogg’s and Dell use this type of branding approach

Product Line Brands

EFFECTIVE BRANDING

Naming brands according to type of brand (contd)…


•Firm chooses to brand the products by not linking it to the parent brand

•In case of product failure, the parent brand is not severely affected

•E.g. Unilever and P&G market products like detergents, personal care products, baby care, and health and wellness products under various brands

Individual Brands

EFFECTIVE BRANDING

Naming brands according to type of brand (contd)…


Brand Naming Guidelines

Brand Awareness

– Simplicity and ease of pronunciation and spelling

– Familiarity and meaningfulness

– Differentiated, distinctive, and uniqueness

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EFFECTIVE BRANDING

Brand Associations

– The explicit and implicit meanings consumers extract from it are important

– In particular, the brand name can reinforce an important attribute or benefit association that makes up its product positioning


Brand Naming Procedure

Define objectives

Generate names

Screen initial

candidates

Study candidate

names

Research the final

candidates

Select the final name

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EFFECTIVE BRANDING


Brand Development

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MODULE 2


How Do Companies Develop Their Brands?

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Line Extension Brand Extension

Multibrands New Brands

Existing

Existing

New

New

Brand Name

Product Category

• 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

BRAND DEVELOPMENT


Developing Brands

Line 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

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BRAND DEVELOPMENT


Developing Brands (contd.)

Brand Extensions

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•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

BRAND DEVELOPMENT



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

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BRAND DEVELOPMENT



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

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BRAND DEVELOPMENT


Branding Strategy

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MODULE 3


So, what strategies are used to manage brands?

Offensive vs. Defensive Brand Strategies

BRANDING STRATEGY


Criteria for Choosing Brand Elements

• Memorability • Meaningfulness • Likability

Marketer’s offensive strategy and build brand equity

• Transferability • Adaptability • Protectability

Defensive role for leveraging and maintaining brand equity

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BRANDING STRATEGY


Offensive Brand Strategy

Offensive strategy for building brand equity

• Memorability • Meaningfulness • Likability

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BRANDING STRATEGY


Memorability

• Brand elements should inherently be memorable and attention-getting, and therefore facilitate recall or recognition.

• For example, a brand of propane gas cylinders named Blue Rhino featuring a powder-blue animal mascot with a distinctive yellow flame is likely to stick in the minds of consumers.

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BRANDING STRATEGY


Meaningfulness

• Brand elements may take on all kinds of meaning, with either descriptive or persuasive content.

• Two particularly important criteria

– General information about the nature of the product category

– Specific information about particular attributes and benefits of the brand

• The first dimension is an important determinant of brand awareness and salience; the second, of brand image and positioning.

Can you think of any meaningful brands?

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BRANDING STRATEGY


Likability• Do customers find the brand element aesthetically appealing?

• Descriptive and persuasive elements reduce the burden on marketing communications to build awareness.

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

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BRANDING STRATEGY


Defensive Brand Strategy

Defensive strategy for leveraging & maintaining brand equity

• Transferability • Adaptability • Protectability

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BRANDING STRATEGY


Transferability

• How useful is the brand element for line or category extensions?

• To what extent does the brand element add to brand equity across geographic boundaries and market segments?

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BRANDING STRATEGY

A massive South American river and therefore, wide variety of products

Name created by joining 'Tan' meaning body, and 'Nishk' meaning a gold ornament


Adaptability

• The more adaptable and flexible the brand element, the easier it is to update it to changes in consumer values and opinions.

• For example, logos and characters can be given a new look or a new design to make them appear more modern and relevant.

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BRANDING STRATEGY


Protectability

Marketers should:1. Choose brand elements that can be legally protected internationally.

2. Formally register chosen brand elements with the appropriate legal bodies.

3. Vigorously defend trademarks from unauthorized competitive 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.

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BRANDING STRATEGY


In addition to naming, developing, and managing brands, how do firms enhance brands?

BRANDING STRATEGY


Tactics for enhancing success: brand elements

A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate the formation of strong,

favorable, and unique brand associations such as:

Brand names

URLs

Logos and symbols

Characters

Slogans

Packaging

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BRANDING STRATEGY


URLs

• URLs (uniform resource locators) specify locations of pages on the web and are also commonly referred to as domain names.

• A company can either sue the current owner of the URL for copyright infringement, buy the name from the current owner, or register all conceivable variations of its brand as domain names ahead of time.

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BRANDING STRATEGY


Logos and Symbols

• Play a critical role in building brand equity and especially brand awareness

• Logos range from corporate names or trademarks (word marks with text only) written in a distinctive form, to entirely abstract designs that may be completely unrelated to the word mark, corporate name, or corporate activities

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BRANDING STRATEGY

Can you identify the following brands?


Characters

• A special type of brand symbol—one that takes on human or real-life characteristics

• Some are animated like Peter Pan peanut butter’s character, and numerous cereal characters such as Cap’n Crunch, and Snap, Crackle & Pop

• Others are live-action figures like Juan Valdez (Colombian coffee), and the Maytag repairman. Notable newcomers include the AOL running man, the Budweiser frogs, and the AFLAC duck

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BRANDING STRATEGY

Can you identify the brands associated with the following

characters?


Slogans

• Slogans are short phrases that communicate descriptive or persuasive information about the brand

• Slogans are powerful branding devices because, like brand names, they are an extremely efficient, shorthand means to build brand equity

Can you identify the following slogans?

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BRANDING STRATEGY


Jingles

• Jingles are musical messages written around the brand. Typically composed by professional songwriters, they often have enough catchy hooks and choruses to become almost permanently registered in the minds of listeners—sometimes whether they want them to or not!

• Jingles are perhaps most valuable in enhancing brand awareness.

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

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BRANDING STRATEGY


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.

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


Packaging

• From the perspective of both the firm and consumers, packaging must achieve a number of objectives:

– Identify the brand

– Convey descriptive and persuasive information

– Facilitate product transportation and protection

– Assist at-home storage

– Aid product consumption

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BRANDING STRATEGY


What can Packaging Influence?

Taste

• Our sense of taste and touch is very suggestible, and what we see on a package can lead us to taste what we think we are going to taste.

Value

• Long after we have bought a product, a package can still lead us to believe we bought it because it was a good value

Consumption

• Studies of 48 different types of foods and personal care products have shown that people pour and consume between 18% and 32% more of a product as the size of the container doubles

How a person uses a product

• One strategy to increase use of mature products has been to encourage people to use the brand in new situations, like soup for breakfast, or new uses, like baking soda as a refrigerator deodorizer

• An analysis of 26 products and 402 consumers showed that twice as many people learned about uses from the package than from television ads

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BRANDING STRATEGY


Linking Brand Equity to Brand Identity

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MODULE 4


How does it all work simultaneously?

Brand Element

Criterion Brand Names &

URLs

Logos & Symbols

CharactersSlogans &

JinglesPackaging & Signage

Memorability For brand recall &

recognition

For brand recognition


For brand recall & recognition


Meaningfulness For brand association

For brand association

For brand personality



Likability For verbal imagery

For visual appeal

For human qualities

For verbal imagery

For visual & verbal appeal

Transferability Limited Excellent Limited Limited Good

AdaptabilityDifficult

Redesignpossible

Sometimes modified

Can be modified

Redesignpossible

Protectability Good Excellent Excellent Excellent Poor

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BRANDING STRATEGY


Putting It All Together: Brand Identity

• The entire set of brand elements makes up the brand identity, the contribution of all brand elements to awareness and image

• The cohesiveness of the brand identity depends on the extent to which the brand elements are consistent

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BRANDING STRATEGY


Level 2 Completed!

Documents

Product and Brand Management · 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