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    3R+V Model in effective Branding on International Arena

    Module: Branding and Retailing in changing Economic Environment

    Session 19: 3R+ V Model in effective Branding on International Arena

    Everyone has heard of the 3 Rs of education: Reading, wRiting, and aRithmetic, but have you heard of

    the 3 Rs of branding? They are Recognition, Reputation and Reaction.

    Recognition: We want our products to be recognized. We want the hard work that goes into packaging our

    products and services, the money we spend on advertising, and all the planning we do in marketing, to

    benefit our brand, not the competitions. This is why logos are important. This is why we craft tag lines and

    slogans. This is why Coke is so fussy about the exact shade and hue of red in their packaging. This is why

    McDonalds is so aggressive about controlling the use of Mc____ wherever it can.

    Reputation: In the end your branding is a suggestion that your company makes about its relevance and

    meaning, and it is your customers, prospects and partners who get to decide what your brand truly means

    to them. You can be well recognized, but if your reputation is bad the recognition can hurt you. On the

    other hand, if your product is undistinguished from your competition, a well-recognized brand alone maynot be helping you as much as you think. How often have you sneezed, asked for a Kleenex, and been

    handed a Puff? Did you notice the difference? Did you care? Recognition is naturally associated with

    reputation, but the reputation is strongest when it encompasses a unique value or serves the needs of a

    particular niche.

    Reaction: This is where the money is made, or lost. You want your brand to provoke a positive reaction, to

    get people to choose your product over the competitions. You want a reaction so positive and strong that

    it can beat a sale price on a similar item or have a customer choose your service over another solution. But

    a negative reaction can be brutal. Whether you are being ignored on the shelf, or actively boycotted, a

    negative reaction cycle can be ruinous to your business.So how do you tune your branding to get the reaction you want? Well the magic wont happen if the

    recognition and reputation arent right. You have to take Recognition beyond merely locating yourself in

    an industry or slapping a logo on your business card. You have to approach Reputation in a mindful way

    dont just let it happen, participate! Align your values with the expectation you set for your brand. Know

    the boundaries of your message and the expectations you are setting with your brand promises. Be

    prepared to walk your talk and fix it when you stumble. You are in the business of developing and

    maintaining trust.

    Here a few more Rs for you: Repetition, Reinforcement and Rigor: Consistent and attentive behavior,

    clearly communicated value, and a track record of disciplined delivery will support the 3 Rs of Branding

    and will get you seeing the Reactions the matter!

    Source: http://davidscohen.wordpress.com/2008/02/25/the-3-rs-of-branding/

    Prepared by Prof. Mohd Nazeer Ahmed, Faculty Member WLC College India, Hyderabad Page 1

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    3R+V Model in effective Branding on International Arena

    Business definition for Brand value: Brand value is the amount that a brand is worth in terms of income,

    potential income, reputation, prestige and market value. Brands with a high value are regarded as

    considerable assets to a company; so that when a company is sold a brand with a high value may be worth

    more than any other consideration.

    Consumers love brands because they offer an extra valuethat is, one in addition to the core product orservice. That value becomes the major motivation for consumers to buy or use the product.

    How precisely is this value being added and incorporated into the brand? Advertising professionals say it is

    advertising. Consumers love the advertisementso theyll love the brand.

    Brands are not human-like and they do not have a life of their own outside the consumers mind. They are

    instruments, simply means to achieve ends. Emotions cannot be glued to them. They arouse emotions

    when they are perceived as a source of something beneficial. The positive emotions are direct outcomes

    of these anticipations. Their various symbolizations (name, logo, font, emblem and so on) have little

    impact on their own; their importance is mainly as identifiers of sources of already attributed and

    anticipated benefits.

    The act ofbranding has 10 different meanings, which translate into 10 different ways to create

    instrumentality or usefulness beyond the tangible benefits of a product/service:

    1. Creating a Conceived Linkage to a Tangible Benefit

    Creating a conceived linkage between the brand name and other identifiers and a tangible benefit (a result

    in the physical world or an experience). That benefit is provided by the product itself or any component of

    the marketing mix.

    2. Forming a Mental Context

    A concept or an organizing principle that allows the consumer to connect unrelated facts by guiding intent

    or by some other common factor. In these cases, the main benefit of the brand to its customers originates

    in the mental context.

    3. Directing an Experience

    The branding here is the creation of an expectation that allows an experience richer than what theproduct alone can offer.

    4. Creating a Means of Self-Presentation

    Prepared by Prof. Mohd Nazeer Ahmed, Faculty Member WLC College India, Hyderabad Page 2

    http://www.brandxpress.net/category/logo/http://www.brandxpress.net/category/logo/http://www.brandxpress.net/category/branding/http://www.brandxpress.net/category/branding/http://www.brandxpress.net/category/branding/http://www.brandxpress.net/category/branding/http://www.brandxpress.net/category/logo/
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    Branding creates a symbol with a meaning that is well known to everybody in a relevant group. It enables

    the consumer to characterize himself and is used by him for inner communication, for interpersonal

    communication and for public communication.

    5. Creating a Means to Deliver a Message

    The branding role in this approach is to create a symbol of another kind, its meaning widely known as well.

    That kind of symbol enables the consumer to make a very specific statement and/or express a very

    specific emotion.

    6. Building a Social/Cultural Authority

    The next branding approach is the creation of an authority that the consumers can use as a guide. That

    guide helps them to understand whats happening around them and informs them which behavioral waysare normative, what will make them happier and so on.

    7. Creating a Long Hand

    The branding creates means for the consumer and empowering him or her to act for noble objectives and

    high purposes that she cant achieve by herself.

    8. Creating an Alter Ego

    The brand is a way for the consumer to behave (at least on a fantasy level) in a manner he would like to

    but doesnt dare, or isnt willing to pay the price for.

    9. Building an Emotional Gym

    Opting for our civilized and protected lifestyle, we compromise a lot of our possibilities as humans. We go

    to the gym to prevent the degeneration of our bodies, which because of our lifestyles dont get to face the

    challenges they are otherwise capable of confronting. Similarly, we watch movies to exercise emotional

    skills that arent legitimate or acceptable in our lifestyles.

    10. Facilitating Fantasies

    Prepared by Prof. Mohd Nazeer Ahmed, Faculty Member WLC College India, Hyderabad Page 3

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    This branding approach helps the consumer to fantasize an alternative reality. Consumers fantasize about

    irresistible sex appeal, omnipotence and dominance, importance, success, so on.

    BEST GLOBAL BRANDSYear 2009 rankings

    2009 Rank

    2008 Rank

    Brand

    Country of Origin

    Sector

    2009 Brand Value ($m)

    Change in Brand Value

    1

    1

    United States

    Beverages

    68,734

    3%

    22

    United StatesComputer Services60,2112%

    33

    Prepared by Prof. Mohd Nazeer Ahmed, Faculty Member WLC College India, Hyderabad Page 4

    http://www.interbrand.com/best_global_brands.aspx?year=2009&type=desc&col=1&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=asc&col=2&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=asc&col=3&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=asc&col=4&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=asc&col=5&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=desc&col=6&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=asc&col=7&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=desc&col=1&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=asc&col=2&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=asc&col=3&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=asc&col=4&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=asc&col=5&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=desc&col=6&langid=1000http://www.interbrand.com/best_global_brands.aspx?year=2009&type=asc&col=7&langid=1000
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    United StatesComputer Software56,647-4%

    44

    United StatesDiversified47,777

    -10%

    55

    FinlandConsumer Electronics34,864

    -3%

    68

    United StatesRestaurants32,2754%

    710

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    United StatesInternet Services31,98025%

    86

    JapanAutomotive31,330

    -8%

    97

    United StatesComputer Hardware30,636

    -2%

    109

    United StatesMedia28,447-3%

    1112

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    United StatesComputer Hardware24,0962%

    1211

    GermanyAutomotive23,867

    -7%

    1314

    United StatesPersonal Care22,841

    4%

    1417

    United StatesComputer Services22,0303%

    1513

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    GermanyAutomotive21,671-7%

    1616

    FranceLuxury21,120

    -2%

    1718

    United StatesTobacco19,010

    -11%

    1820

    JapanAutomotive17,803-7%

    1921

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    Republic of KoreaConsumer Electronics17,518-1%

    2024

    United StatesComputer Hardware15,433

    12%

    2122

    SwedenApparel15,375

    11%

    2215

    United StatesFinancial Services14,971-32%

    2326

    Prepared by Prof. Mohd Nazeer Ahmed, Faculty Member WLC College India, Hyderabad Page 9

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    United StatesBeverages13,7063%

    2423

    United StatesComputer Software13,699

    -1%

    2528

    SwitzerlandBeverages13,317

    2%

    2629

    United StatesSporting Goods13,1794%

    2731

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    GermanyComputer Software12,106-1%

    2835

    SwedenHome Furnishings12,004

    10%

    2925

    JapanConsumer Electronics11,953

    -12%

    3033

    United StatesAlcohol11,8333%

    3130

    Prepared by Prof. Mohd Nazeer Ahmed, Faculty Member WLC College India, HyderabadPage 11

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    United StatesTransportation11,594-8%

    3227

    United KingdomFinancial Services10,510

    -20%

    3336

    JapanComputer Hardware10,441

    -4%

    3439

    United StatesFood10,4287%

    3532

    Prepared by Prof. Mohd Nazeer Ahmed, Faculty Member WLC College India, HyderabadPage 12

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    United StatesComputer Hardware10,291-12%

    3619

    United StatesFinancial Services10,254

    -49%

    3737

    United StatesFinancial Services9,550

    -11%

    3838

    United StatesFinancial Services9,248-10%

    3940

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    JapanConsumer Electronics9,2105%

    4044

    CanadaMedia8,434

    1%

    4145

    ItalyLuxury8,182

    -1%

    4243

    NetherlandsDiversified8,121-2%

    4358

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    United StatesInternet Services7,85822%

    4451

    FrancePersonal Care7,748

    3%

    4547

    United StatesComputer Services7,710

    -3%

    4646

    United StatesInternet Services7,350-8%

    4748

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    GermanyDiversified7,308-8%

    4856

    United StatesFood7,244

    9%

    4949

    United StatesAutomotive7,005

    -11%

    5062

    SpainApparel6,78914%

    5161

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    United StatesFood6,73110%

    5257

    United StatesPersonal Care6,550

    2%

    5355

    FranceFinancial Services6,525

    -7%

    5452

    United StatesMedia6,523-9%

    5553

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    GermanyAutomotive6,484-8%

    5659

    United StatesComputer Hardware6,431

    1%

    5742

    United StatesFinancial Services6,399

    -26%

    5863

    SwitzerlandFood6,31913%

    5960

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    FranceLuxury6,040-5%

    6066

    FranceFood5,960

    10%

    6164

    United StatesRestaurants5,722

    3%

    6270

    GermanySporting Goods5,3976%

    6373

    Prepared by Prof. Mohd Nazeer Ahmed, Faculty Member WLC College India, HyderabadPage 19

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    CanadaConsumer Electronics5,1387%

    6465

    United StatesInternet Services5,111

    -7%

    6567

    GermanyAutomotive5,010

    -7%

    6668

    United StatesDiversified5,004-5%

    6769

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    United StatesPersonal Care4,917-7%

    6871

    SwitzerlandLuxury4,609

    -7%

    6972

    Republic of KoreaAutomotive4,604

    -5%

    7076

    FranceLuxury4,5981%

    7174

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    United StatesPersonal Care4,404-5%

    7241

    SwitzerlandFinancial Services4,370

    -50%

    7350

    United StatesAutomotive4,337

    -43%

    7475

    GermanyAutomotive4,234-8%

    7578

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    JapanConsumer Electronics4,225-1%

    7680

    United StatesLuxury4,000

    -5%

    7779

    SwitzerlandLuxury3,968

    -6%

    7877

    United StatesApparel3,922-10%

    7981

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    United StatesRestaurants3,876-5%

    8092

    United StatesPersonal Care3,847

    7%

    8182

    GermanyFinancial Services3,831

    -5%

    8283

    FranceAlcohol3,754-5%

    8384

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    United KingdomEnergy3,716-5%

    8489

    United KingdomAlcohol3,698

    3%

    8588

    United StatesConsumer Electronics3,563

    -3%

    8698

    GermanyPersonal Care3,5575%

    8791

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    ItalyLuxury3,530-2%

    8893

    ItalyAutomotive3,527

    0%

    8994

    ItalyLuxury3,303

    -6%

    9085

    United StatesRestaurants3,263-16%

    91New

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    FranceFMCG3,235New

    9297

    NetherlandsEnergy3,228

    -7%

    93New

    United StatesRestaurants3,223

    New*

    94100

    United StatesFinancial Services3,170-5%

    95New

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    United StatesComputer Software3,161New

    9690

    JapanAutomotive3,158

    -12%

    97New

    GermanySporting Goods3,154

    New

    98New

    United KingdomLuxury3,095New*

    99New

    Prepared by Prof. Mohd Nazeer Ahmed, Faculty Member WLC College India, HyderabadPage 28

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    United StatesLuxury3,094New*

    100New

    United StatesFMCG3,081

    New

    *indicates brands that did not appear in the previous year's top 100 ranking

    Source: http://www.interbrand.com/best_global_brands.aspx?year=2009&langid=1000#