BRAND EQUITYBRAND IDENTITY
PRODUCT LINE EXTENSIONS
BRAND EXTENSIONS
PRODUCT MIX DECISIONS
BRAND EQUITYBRAND EQUITY
BUILDING STRONG BRANDS BUILDING STRONG BRANDS
BUILDING STRONG BRANDS
• BRAND STRENGTH= DIFFERENTIATION * RELEVANCE
• BRAND STATURE=ESTEEM*KNOWLEDGE• ESTEEM BASED ON PQ• KNOWLEDGE –CUSTOMER NOT ONLY
AWARE OF BRAND BUT ALSO UNDERSTANDS WHAT THE BRAND STANDS FOR.
BUILDING STRONG BRANDS
• Higher Esteem than knowledge means brand has unrealized potential .
• eg National Geographic,3 M.• Low Esteem with higher knowledge-more
people know what brand stands for. • Exxon, MTV, Cigarette , Alcohol brands• Loosing penetration, serving market that
has polarized opinion.
BUILDING STRONG BRANDS
BUILDING STRONG BRANDS
1.Brand Identity-how you aspire to be perceived based on core identity while Brand Image is how you are perceived
2.Value Proposition-consider emotional and self expressive benefits as well as functional benefits
3.Brand position-part of Brand identity and Value proposition
4.Execution-communicate the Brand Identity and Position
BUILDING STRONG BRANDS
5.Consistency over time
6.Brand system-consistent and synergistic
7.Brand leverage-extend brands and develop co branding
8. Tracking Brand equity-awareness, perceived quality ,loyalty ,associations
9.Brand responsibility
10.Invest in Brands
Good Brands Help Build Good Brands Help Build the Corporate Imagethe Corporate Image
Family - Brand Decision Manufactures who brand their products face further choices. Four-brand name strategies can be distinguished: 1. Individual Brand Names : This policy is followed by
Procter & Gamble (Tide and Genesco Inc. LUX & LIRIL, by HUL, ).
2. A Blanket Family for all products : This policy is
followed by Heinz and General Electric, Tata,Bajaj 3. Separate Family Names for all products. This policy is
followed by Sears ( Kenmore for appliances, Kerrybrook for women's clothing, and Homart for major home installations),.
4. Company Trade name combined with industrial product
names "This policy is followed by Kellogg's (Kellogg's Rice Krispies and Kellogg's Raisin Bran).
MULTI BRANDING MULTI BRANDING STRATEGYSTRATEGY
When and why we should use ??
BRAND EQUITY / BUILDING
• The Role of Sponsorship
• The Role of Web
• The Role of Personality
• The Role of Non Media/Advtg
An Overview of Branding DecisionsAn Overview of Branding Decisions
BRAND IDENTITY
• Brand Identity-how you aspire to be perceived based on core identity
• while Brand Image is how you are perceived
THE PRISM OF IDENTITYTHE PRISM OF IDENTITY
PICTURE OF SENDER
Physique Personality
Relationship Culture
Reflection Self-image
INT
ER
NA
LIS
AT
ION
The Prism of Brand Identity
• Physique-
• Combination of Independent characteristics including Logo which may be either prominent or dormant ;it is the brand basis, is a necessity, forming only the first stage in brand construction .
Physical Features of a Brand
-Associations
eg Asian Paints- Gatoo
Air India– MAHARAJA, Mercedez Logo
The Prism of Brand Identity
• Personality-
• Each Brand has personality. It acquires a character. We identify the brand with a person; we gradually form a picture
of that person by the in which he speaks of products or services.
The easy way to bestow personality on a brand is to provide it with a spokesperson, a star, or an animal.
Advtsg Firm Euro RSCG make Physique & Personality ,two major pillars of Brand Communication
Eg Provogue jeans Binami Cements
The Prism of Brand Identity
• Culture – INTERNAL
• The brand has its own culture from which every product derives. It implies a system of values ,a source of inspiration and brand energy.
• A Basic principles governing the brand in its outward signs (product and communication)
• Apple-the product of California culture ,symbolizes new frontiers• Mercedes personifies German values, with order strength prevailing.• The three box bodywork and overall symmetry • Adidas –embedded in collective culture ( sports ,soccer) while
Reebok’s or Nike’s highlighting virtues of Individualism• Coca cola- American ,Toyota –Japan, Evian French Culture
The Prism of Brand Identity
• Relationship ---brand is a relationship. It often provides the opportunity for an intangible exchange between persons; esp in service sector
• EXTERNAL
The Prism of Brand Identity
• Reflection—A brand reflects customer’s image ,the target audience image
The Prism of Brand Identity
• Self image-customer’s self image
• Is the target’ own internal mirror.
BRAND REINFORCEMENT STRATEGIES
• AND
• BRAND REVITALIZING
• STRATEGIES
BRAND EQUITY
&
• MEASUREMENT OF
BRAND EQUITY
BRAND EQUITY BRAND EQUITY
1. Assets & Liabilities 2. Core Values Assets A) Brand Loyalty - Inertia existing user has to continue use of a particular brand even if the switching costs are low. Advages : - reduces the vulnerabilities to competitors’ actions. - greater Trade leverage. - provides brand exposure & reassurance to new customers. B) Name Awareness C) Perceived Quality D) Brand Associations - basic Attributes - benefits - relative price economy - use / application - user / customer - celebrity / person
BRAND EQUITY BRAND EQUITY
- Life Styles / Personality - Product class - Competition - Country / geography - Intangibles
(E) Proprietary Assets Patents, Trade Marks, Logos etc. Brand equity ..... Soul Product ..... body (not carried away...)
eg. Life buoy.... health protection not just red carbolic... Soap.
(2) Core Values - Hierarchy
- Attribute based : Nirma - Low price, adequate, clearing
- Rational benefits - - Emotional benefits - Realm of Values Higher up in this hierarchy the core values of a brand
Less risk of being threatened by me -too brands.
MEASURE BRAND EQUITYMEASURE BRAND EQUITY
1) Price premiums generated
2) Replacement cost - cost of establishing comparable
3) Stock price movements
4) Future earning - discounted present value of all the
future earnings.
5) The BRAND EQUITY TEN
Brand Equity Measure
1.Refelect Brand Equity, tap full scope of BE.• AWARENESS,PERCEIVED
QUALITY,LOYALTY,ASSOCIATIONS
2.Reflect the Asset value ,focus on sustainable advantage not easily duplicated by competitors
• Truly drives the market ie price, sales and profit• 3. Sensitive• 4. Can be applied across brands, product
categories and markets
INTERBRAND’S TOP BRANDS
• LEADERSHIP• STABILITY• MARKET –GROWING OR STABLE SALES• INTERNATIONAL• TREND- SALES OF BRAND • SUPPORT- INVESTMENT• PROTECTION- LEGAL TM
TOP 10 BRANDS
• COCACOLA
• Kellog’s
• Mc Donald’s
• Kodak
• IBM.
PERCEIVED VALUE MODEL
• PRODUCT MIX DECISIONS
• PRODUCT LINE EXTENSIONS
• BRAND EXTENSIONS
PRODUCT LINEPRODUCT LINE
Group of products - closely related perform similar function. - sold to the same customer group/segment. - marketed thro’ the same channel - make up a particular price range
Additional items in the same product category .... new flavours, forms, ingredients. .... Different Packaging. Volume may Cannibalize .
PRODUCT MIX WIDTHPRODUCT MIX WIDTH
The concept of product mix and product line depth applied to selected Procter & Gamble products.
Detergents Toothpaste Bar Soap Deodorants Disposable diapers Coffee
Ivory Snow Gleem 1952 Ivory 1879 Secret 1956 Pampers 1961 Folger's 1963
1930 Crest 1955 Camay 1927 Sure 1972 Luvs 1976 Instant Folger's
Dreft 1933 Lava 1928 1963
Tide 1946 Kirk's 1930 High Point
Joy 1949 Zest 1952 Instant 1975
Cheer 1950 Safeguard 1963 Folger's Flaked
Oxydol 1952 Coast 1974 Coffee 1977
Dash 1954
Cascade 1955
Duz 1956
Ivory Liquid
1957
Gain 1966
Dawn 1972
Era 1972
Bold 3 1976
Pro
du
ct l
ine
dep
th
Solo 1979
Product mix width
Product Line Extension Product Line Extension
PL extension - firm adds new versions of existing products or modifies these products so as to deepen their product line. The appeal is to existing market segments. PL Extension - Used to increase usage among existing customers by providing more options. This is possible when consumers are dissatisfied with the range of options and extending the line will result in net contribution of profits.
Product related Extensions
• Colgate –Tooth paste—Tooth brush
• Prestige cooker-Non stick ware
• Nirma Detergent powder-cake
• Frooti Parenthood brand launching various versions
• Cinthol moving to Talc from toilet soap
• Zodiac Belt from shirts, Ties -?
Product related Extensions
• More options to consumers cinthol• Cornering more retail shelf space• Creating some excitement around an old
brand • Extending core promise to new users- Ariel
super soaker• Managing changed market situation-
Colgate Gel to fight Close up
Line Extension
• Up gradation of Existing customers
• Unfulfilled Need
• Novelty
• Ponds Magic ,Nirma Cake, Life buoy Plus
Product Line Extensions
High end Low end -
Merits & Demerits of Stretching
Product Line Extension
Low end High end
Merits & other Demerits of Stretching
Un related Extensions
• Godrej ---- Soap ,Safety lock, Cupboard, hair dye, refrigerator, type writer,
• Tata --- Motor ,Tea, Power , Salt ,Steel
• Wipro --Computer, soap
Brand - Extension Decision
• A brand - extension strategy is any efforts to extend a successful brand name to launch new or modified products or lines, different from Existing segment or product line..
• If the current market is saturated • -firm may consider line expansion or• -new market segments.
HOW TO EXTEND BRANDHOW TO EXTEND BRAND
1) Identify Brand Associations. 2) Products linked to these Associations. 3)Select the best product for concept testing & Development.
- Fit to the product
Advantages
Consistency in the value perception
Competitive edge in the extension
not create any kind of dissonance
company Expertise, infrastructure & resources.
Perimeters of brand extensionPerimeters of brand extension
No-go area
Threats to brand's capital asset
Extension zone
Latent potential
Outer core
Spontaneous associations
Inner core
Lineextension
Ext. Zone
Strategic Brand Management
Brand Extension FAILS ?
WHY ?.
BRAND EXTENSION
• STRATEGIES
• &
• MODELS
BRAND EXTENSION MODEL
• FAMILIARITY v/s ESTEEM
THE EXTENSION MATRIXTHE EXTENSION MATRIX
LOW BRAND FAMILIARITY HIGH BRAND FAMILIARITY
HIGH BRAND ESTEEM ESTEEM MAY NOT BE EXPLORABLE DUE TO NICHE BRAND (DONT GO)
BMW
ROLEX
EXTENSION MOST LIKELY TO SUCCEED (GO)
BAJAJ - m/cycle
MARUTI
LUX
LIFEBUOY
LOW BRAND ESTEEM RISK LESS & POTENTIAL MORE (GO)
SIGNAL TOOTH PASTE
ERASMIC BLADES
LYRIL BRIEFS
-VE BAGGAGE FOR EXTENDED PRODUCT (DON'T GO)
INDIAN AIRLINES
HMT
PREMIER PADMINI
Familiarity: How well known/ Awareness How high unaided recall How wide spread it its name
Esteem: Image Popular Satisfied are the current users. Level of inertia of the current users to stick to… Aspiration levels & the potential market. Brand Equity. Perceived Quality.
Brand ExtensionBrand Extension
Type of Brand and Ability to Extend.
(A) (B) (C) (D) (E)
Degree of product dessimilarity
Type of brand
Phitcsophy
Interest
Know-how
Formula
ProductType of brand
Philosophy
Interset
Know-how
Formula
Product
A B E
X
Y
Degree of
Product dissimilarity
Under and over-exploitation of a brand capital asset.
TRANSACTION MARKETING V/s CUSTOMERS
RELATIONSHIP MARKETING
• THANK YOU