Brand

Management
 “If all Coca-Cola’s asset were destroyed
overnight. Whoever owned the Coca-Cola
name could walk into a bank the next
morning and get a loan to rebuild every
thing”
Carlton Curtis
VP Corporate Communications,
Coca Cola
Brands are
Valuable…
2009 Business week reports
Top 10 brands
US $ 422,901,000,000
& that of top 100 brands to be
US $ 1,156,289,910,000
Rs. 98,369,387,350,000
 Experimenting
less with the
competition Less Vulnerable
Increase usage
over time to price based
competition

Brands
Brands are valuable secure a
because they change
consumer behavior…
future
stream of
profits
Require less
Paying a marketing & sales
premium over investment
other customers
Making
Referrals
1
  United States Beverages 68,734

         

2   United States Computer Services 60,211

3   United States Computer Software 56,647

   
4
  United States Diversified 47,777

   

5   Finland Consumer Electronics 34,864

   

6   United States Restaurants 32,275

   
7
  United States Internet Services 31,980

   

8   Japan Automotive 31,330

   

9   United States Computer Hardware 30,636

   
10
  United States Media 28,447
But What is a
Brand?
"a name, sign or symbol used to identify
items or services of the seller's and to
differentiate them from goods of
competitors."
 "a set of assets (or liabilities) linked to a
brand's name and symbol that adds to (or
subtracts from) the value provided by a
product or service…"
 "simply put, a brand is a promise. By
identifying and authenticating a product or
service it delivers a pledge of satisfaction
and quality."
A Brand is
“A collection of perceptions in the mind of
the consumers (all other stake holders).

Properly managed these

perceptions secure long term
revenue for the business and
create lasting value”
"A brand is the most valuable real-estate
in the world, a corner of the consumer's
mind."
Implications of this definition…

 A brand is very different from a product,

a brand exist in the mind
 These perceptions if properly managed
change the consumer behavior
 The role of advertising is to positively
influence people’s perception
BV Exchange B/W Company &
consumers works like…
Brand value delivered by the Company

Results in change in consumer behavior

Which secures long term revenue and growth

And therefore creates business value

 How does a
Brand deliver
value

A strong brand
Gives Peace of A Strong brand
mind saves Time

A strong brand A Strong brand

transforms the gives consumers a
.consumption exp ‘good news story

A Strong brand helps us express

ourselves: our attitudes,
values and place in society
The Objective of Brand Management..
To build and maintain a strong
brand which is…
 Motivating to the customers
 Distinctive from Competition
 Consistently delivered
 Enduring over time
 In line with business objectives
Principles of Successful Brand
Management…
 Brand value in built in the mind
 Brands are built through every thing they
do & say
 A brand can be the driving force for your
business
 Brands draw strength from consistency
over time
 A brand can live for ever
Three Principles of Brand Performance

 Market Leaders & Superior Brand

performance are interlinked
 Market Leading brands tend to Have
higher Profit Margins
 There is No Such Thing As Brand
Lifecycle
A Successful Brand Must…

 Offer Superior perceived quality

 Managed Consistently over a long period
to develop a dominant positioning

Market Leadership
Profitability
Very Important to Remember…
Branding = Marketing
 Customers ususally never Understand the
product or the company selling it
 Customers Perceive a Product in their own
terms
 Customer Perception will focus on benefits,
which are often intangible
 Customer perception is not always at the
conscious level
Criteria of Success
 At the Product level it must deliver functional
benefits to meet the market need al least as well as
the competition
 A brand will offer intangible benefits over and
above the product
 The various benefits of a brand must be
consistent with each other and present a unified
character or personality
 The values offered must be wanted by the
consumer
 A brand must be a blend of
complementary physical. rational, and
emotional appeals. The Blend must be
distinctive and result in a clear personality
that will offer benefits of value to
customers
Brand Essence
The heart & soul of a brand, a brands fundamental
nature or quality usually stated in two or there words
Brand Promise
A differentiated benefit the brand offers to the
consumer
Brand Positioning
The way a brand is perceived by the consumers
Brand Personality
The adjectives that define a brand
Brand Associations
Any thing that a consumer associates in his mind with
the brand
Brand Identity
This refers to a combination of visual, auditory and
other components that create recognition, represent
the brand promise, provide differentiation, creates
communications synergy & proprietary
Brand Architecture
The family tree or brands hierarchy. It is how the
organization organizes the various named entities in
its portfolio
Brand Portfolio
The mix of brands a company possesses
Master Brand
The most dominant and highest level brand in the
hierarchy. Corporate brands are master brands.
Parent brand may or may not be the master brand
Parent Brand
This is a brand that has extended into more then one
category
Sub-Brand
A new brand that is combined with a parent or master
brand
Brand Extension
This refers to the introduction of the brand into a new
product category or segment
Brand Equity
The positive differential effect that knowing the brand
name has on customers response to the product or
service
The commercial value of all associations (positive or
negative) that people have of an organization and its
products and services
The power of the brand to shift the consumer demand
curve of a product
It is a set of assets (and liabilities) linked to a brand
its symbol that adds to or subtract the value provided
Very Important to Remember…
Brand strength is directly
proportionate to Brand Equity

A Strong Brand is one which

has High Equity
Asset Categories
There are 4 major elements that enhance brand’s
equity, these elements are called asset categories
These are
1. Brand name awareness
2. Brand Loyalty
3. Perceived Quality
4. Brand Associations
Implications
 The management of brand Equity involves
investment to create and enhance these assets
 Each brand equity asset creates value in a no
of ways
 Brand equity creates value for customer and the
firm as well
 For assets to underlie brand equity, they must
be linked to the name or symbol of the brand
Brand Loyalty
 Reduced Marketing Costs
 Trade Leverage
 Attracting new Consumers
- Create Awareness
- Reassurance
 Time to Respond to Competitive Threats
Brand Awareness
 Anchor to Which Other Associations can be
attached
 Familiarity Liking
 Signal of substance/commitment
 Brand To be Considered
 Brand
Awareness

Brand Recognition Brand Recall

 Recognition reflects familiarity  The ability of a brand to come

with the brand. to mind when its product
 category is mentioned
It is simply remembering that
there was a past exposure to  Deciding Factor in getting on
the brand a Shopping list
Where ?
Why? No
Concern
What?
Brand Awareness
Brand Name Dominance
Consumers can provide only the name of a single
brand
Third Asset Category…
Perceived Quality
“The customers perception of the overall quality or
superiority of a product or service relative to its
alternatives"
Perceived Quality
 Reason To Buy
 Differentiation / Position
 Price
 Channel Member Interest
 Extensions
Perceived Quality
 Among all brand elements only perceived quality
has been shown to drive financial performance
 Perceived quality is often the major (if not
principal) thrust of a business
 Perceived quality is linked to and often drives the
other aspects of how a brand is perceived
Why Perceived Quality May Differ From Actual
Quality?
 Customer may be over influenced by a previous
image of quality
 A company may be achieving quality in a
dimension which is not important to a consumer
 Customers rarely have all the information to make
a sound judgment about quality- even if they do
they lack the motivation and hence depend on 1 or
2 cues.
Why Perceived Quality May Differ From Actual
Quality?
 Since they don’t know how to best judge brands
they may be looking at wrong cues
Third 4th Asset Category…
Brand Associations
“Any thing linked in memory to brand"
Brand Associations
 Help Process or Retrieve information
 Reason to Buy
 Create Positive attitude / Feeling
 Extensions
 Brand Loyalty Brand Brand Perceived
Awareness Associations Quality

Value to customer Value to Firm

•Interpretation / processing of •Efficiency & Effectiveness of
Information marketing Program
•Confidence in the purchase •Brand Loyalty
decision
•Prices / margins
•Use Satisfaction
•Brand extensions
•Trade Leverage
•Competitive Advantage
 Pressure to
Compete on
prices
Short Term Proliferation of
Pressures Competitors

Pressure to invest Why it is difficult Fragmenting

elsewhere to build strong Markets and Media
brands

Bias Against Complex Brand

Innovation Strategies &
Bias towards Relationships
changing the
strategies
Brand Identity
A unique set pf Brand associations that a brand
strategist create or maintain. These associations
represent what a brand stands for and imply a
promise to customer from the organization
members

A Brand identity should help establish a

relationship between the brand and the
customer by generating a value proposition
involving functional, emotional or self
expressive benefits
 Brand As
Brand as a Organization
Product

Brand Identity

Brand As
Brand as
Symbol
Person
 Brand Brand
Image Trap Position
Trap

Brand Identity
Traps

External Product
Perspective Attribute
fixation trap
trap
Brand Position Trap
Brand Position is that part of brand Identity & value
proposition that is to b e actively communicated to
the target audience and that demonstrates
advantage over competition
Product Attribute fixation trap
When the strategic & tactical management of the brad
focuses solely on product attributes, based on part
on the erroneous assumption that those attributes
are the only relevant basis for consumer decisions
& competitive dynamics
Product Attribute Research
The attribute fixation trap is the often caused by
product attribute research
Why?
 It is often effective because attributes are
important to the purchase decision and the use
experience.
 It is relatively easy since customers are more
comfortable talking about attributes then about
less tangible benefits
Product Attribute Research
 It reassures managers that customers evaluate
brands using a logical model, which means that
their decisions are easier to predict & understand
Limitations of Product-Attribute based
Identity
 Fail to Differentiate
 Are easy to copy
 Assume a rational customer
 Limit brand extension strategies
 Creating a frame of reference
 Reduce strategic flexibility
Breaking out of the traps
 A brand as a product perspective
 Identity based on brand as an organization
perspective
 A value proposition that includes emotional and
self expressive benefits also
 The ability of a brand to provide credibility
 The internal as well as an external role of brand
identity
 Brand Characteristics broader then brand position
4 Brand Identity
Perspectives
The Brand as a Product
Product – Related associations will almost always
be an important part of a brand identity because
they are directly linked to brand choice decision
and the use experience
 The Product Scope – Association with a product
class
 Product related Attributes
 Quality / Value
 Association withy use occasion
The Brand as a Product
 Association with the users
 Link to a country or region
The Brand as Organization
It focuses more on attribute of the organization
then on attributes of products
Organization attributes are more enduring & more
resistant to competitive claims then are product
attributes
 It is easy to duplicate products then to duplicate
organizations
 Organizational attributes usually apply to a set of
product classes, competitor in only 1 product
classes may find it difficult to compete
The Brand as Organization
 Because organizational attributes such as
innovation is hard to evaluate and communicate, it
is difficult for the competitor to show that they have
over come any perceived gap
The Brand as a Person – Brand
Personality
A brand personality can create a stronger brand in
several ways
 Helps create a self expressive benefit which
becomes a vehicle for person to express his/her
personality
 Brand personality can be the basis for relationship
between the customer and the brand
The Brand as a Person – Brand
Personality
 Brand personality may help communicate a
product attribute and thus contribute to a functional
benefit
The Brand as a Symbol
A strong brand symbol can provide cohesion &
structure to an identity and make it much easier to
gain recognition and recall
 It is easy to duplicate products then to duplicate
organizations
 Organizational attributes usually apply to a set of
product classes, competitor in only 1 product
classes may find it difficult to compete
Brand- Providing A Value Proposition
A brand’s value proposition is a statement of
functional, emotional & self expressive benefits
delivered by the brand that provide value to the
customer
 An effective value proposition should lead to
brand-customer relationship and drive purchase
decision
 Functional
Benefits

Value
Proposition

Self Emotional
Expressive Benefits
benefits
Functional benefits
The most visible and common basis for a value
proposition
If a brand can dominate a key functional benefit, it
can dominate a category
Limitations
Attribute fixation trap
Emotional benefits
When the purchase of a band gives the consumer a
positive feeling, that brand is providing an
emotional benefit
Emotional benefits add richness and dept to the
experience of use and owning of a brand
To discover what emotional benefits are or could be
associated with a brand
Self Expressive Benefits
Russell Belk
We are what we have is perhaps the most basic &
power fact of consumer behavior
Brands can become the symbol of a person’s self
concept
Thus it provides a self expressive benefit by providing
consumer a way to communicate their self image
Self expressive Vs emotional Benefits
At times there is a close relationship between
emotional & self expressive benefits
In general in comparison to emotional benefits, self
expressive benefits focus on
 Self rather then feelings
 Public setting and products rather then private
ones
 Aspirations and future rather then memories from
the past
Self expressive Vs emotional Benefits
 The permanent rather then transitory
 The act of using the product, rather then the
consequences of using the product
Price
A brands price is also related to the benefits a brand
provides
 Brands are not evaluated independent of price
 A price too high relative to the benefits offered will
severely undercut the value proposition
Functional Emotional Self Expressive Price
Benefits Benefits Benefits

Value Proposition
Price
 Price is a complex construct

The goal of identity creation &

management is usually to focus on
benefits rather then price

Challenge is to make sure that the

benefits are anchored to elements other
then price
Providing Credibility
At times the brand does not need to drive the
purchase decision, but to endorse it
The Brand as Person
Brand Personality
the set of human characteristics associated with a
given brand
 Brand personality like human personality is both
distinctive & enduring
 The same vocabulary that can be used to describe
a person can be used to describe a brand
personality
Brand Personality Drivers
Non Products
Related
Products Related Characteristics
Characteristics User Imagery
Product Class
Sponsorships
Package Brand Symbol
Price Personality
Age
Attributes
Ad Style
Country of Origin
Company Image
CEO
Celebrity Endorsers
 Enriches Contributes to a
Understanding differentiating
Identity

Why use
Brand
Personality

Guides the
Creates
Communicat
Brand equity
ion effort
 How Brand Personality
Creates Brand Equity?

Self expression Relationship Based

Model Model

Functional benefit
Representation Model
Self Expression Model
For certain groups of customers, some brands
become vehicles to express a part of their self
identity
 This identity could be their actual identity or an
ideal self to which they might aspire
 In order to be effective, a brand personality needs
to be desirable and important enough to matter to
the person using it
Relationship Basis Model
Some people may not aspire to have a certain
personality trait but would like to have a
relationship with some one having that trait
e,g
One may not aspire to have the personality of a
competent leader but would like to associated with
one.
Some types of relationships might be as follows
 Down to earth, family oriented, genuine, old
fashioned
 Spirited, young, up to date, out going
 Accomplished, influential competent
 Pretentious, Wealthy
 Athletic Outdoorsy
Brand As Friend
An important relationship for many brands is
friendship li
Brand Behavior Personality
Frequent changes in position, product Flighty,
forms, symbols, advertising etc schizophrenic
Frequent Deals & coupons Cheap, uncultured
Advertises extensively Outgoing, popular
Strong customer service, easy-to-use Approachable
package
Continuity of character, packaging Familiar,
comfortable
High price, exclusive distribution, Snobbish,
advertises in upscale magazine sophisticated
Friendly advertising, endorsers Friendly
Association with cultural events, Culturally aware
Brand Relationship Quality
One of the goals of brand management is to achieve
high brand relationship quality (BRQ)
How can we measure BRQ???
7 dimensions of associated with strong relationships
between people and suggest how brand customer
relationship should be conceived
B
Behavioral Interdependence
The degree to which actions of related partners
are intertwined is indicated

R “This brand plays an important role in my life”

“I feel like some thing is missing when I haven’t
used the brand in a while”

Q
B
Personal Commitment
The partners are committed to each other. There
is a desire to improve or maintain the quality of
the relationship over time, and guilt is felt when it
is compromised

R
“I feel very loyal to this brand”

Q “I will stay with this brand through good times and

bad”
Hoe Does The Brand Help To
Express Personality
For certain groups of customers, some brands
become vehicles to express a part of their self
identity
 This identity could be their actual identity or an
ideal self to which they might aspire
Organizational Associations
A host of organizational associations are available
to managers, few moat prevalent are
 Society/community orientation
 Perceived Quality
 Innovation
 Concern for Customers
 Presence & Success
 Local vs Global
Society/community orientation
Some organizations are Good citizens
 78% consumers said they would buy from a firm
that contributed to medical research, education
and similar causes rather then one that did not
 2/3 said they would switch brands to a
manufacturer that supported a cause they deemed
worthwhile
Have a Program
 Have Focus
 Be consistent over time
 Link the program to the brand
 Be branded
Sources of Brand Identity
1. The Product
2. The Name
3. Brand Character & Symbols
4. Geographical & Historical Roots
5. Advertising & Promotion