REG. NO.

NAME SUBJECT

: IIMM/MG/01/2007/3253 : NISHA MENON : BRAND MANAGEMENT

Ans. 1 (a) A brand is the identity of a specific product, service, or business. A brand can take many forms, including a name, sign, symbol, color combination or slogan. The word brand began simply as a way to tell one person's cattle from another by means of a hot iron stamp. A legally protected brand name is called a trademark. The word brand has continued to evolve to encompass identity - it affects the personality of a product, company or service. A brand is a name, symbol, or other feature that distinguishes a seller's goods or services in the marketplace. More than 500,000 brands are registered globally with pertinent regulatory bodies in different countries. Brands serve their owners by allowing them to cultivate customer recognition of, and loyalty toward, their offerings. Brands also serve the consumer by supplying information about the quality, origin, and value of goods and services. Without brands to guide buying decisions, the free market would become a confusing, faceless crowd of consumables. An established and respected brand can be the most valuable asset a company possesses. Brands have been used since ancient times. For example, people burned singular designs into the skin of their livestock to prove ownership, while potters and silversmiths marked their wares with initials or other personal tags. But it is only since the second half of the nineteenth century that branding evolved into an advanced marketing tool. The industrial revolution, new communication systems, and improved modes of transporting goods made it both easier and more necessary for companies to advertise brands over larger regions. As manufacturers gained access to national markets, numerous brand names were born that would achieve legendary U.S. and global status. Procter and Gamble, Kraft, Heinz, Coca-Cola, Kodak, and Sears were a few of the initial brands that would become common household names by the mid-1900s. Before long, legal systems were devised to recognize and protect brand names, and branding was extended to servicessuch as car repairas well as products. Thus the brand concept moved into the forefront of modern advertising strategy. THE BRAND CONCEPT A brand is backed by an intangible agreement between a consumer and the company selling the products or services under the brand name. A consumer who prefers a particular brand basically agrees to select that brand over others based primarily on the brand's reputation. The consumer may stray from the brand occasionally because of price, accessibility, or other factors, but some degree of allegiance will exist until a different brand gains acceptance by, and then preference with, the buyer. Until that time, however, the consumer will reward the brand owner with dollars, almost assuring future cash flows to the company. The buyer may even pay a higher price for the goods or services because of his commitment, or passive agreement, to buy the brand. In return for his brand loyalty, the company essentially assures the buyer that the product will confer the benefits associated with, and expected from, the brand. Those numerous benefits may be both explicit 1

and subtle. For example, the buyer of a Mercedes-Benz automobile may expect extremely high quality, durability, and performance. But he will also likely expect to receive emotional benefits related to public perception of his wealth or social status. If Mercedes licenses its nameplate to a manufacturer of cheap economy cars or supplies an automobile that begins deteriorating after only a few years, the buyer will probably feel that the agreement has been breached. The value of the brand, Mercedes-Benz, will be reduced in the mind of that buyer and possibly others who become aware of the breach. There are two major categories of brands: manufacturer and dealer. Manufacturer brands, such as Ford, are owned by the producer or service provider. The best-known of these brands are held by large corporations that sell multiple products or services affiliated with the brand. Dealer brands, like DieHard batteries, are usually owned by a middleman, such as a wholesaler or retailer. These brand names often are applied to the products of smaller manufacturers that make a distribution arrangement with the middleman rather than trying to establish a brand of their own. Manufacturers or service providers may sell their offerings under their own brands, a dealer brand, or as a combination of the two types, which is called a mixed brand. Under the latter arrangement, parts of the goods are sold under the manufacturer's brand and parts are sold under the dealer brand.

Ans. 1 (b) Brand names are very important for small businesses, as they provide potential customers with information about the product and help them form an immediate impression about the company. A wellchosen brand name can set a small business's product apart from those of competitors and communicate a message regarding the firm's marketing position or corporate personality. When preparing to enter a market with a product or service, an entrepreneur must decide whether to establish a brand and, if so, what name to use. After deciding to establish a brand, a small business faces the task of selecting a brand name. An entrepreneur might decide to consult an advertising agency, design house, or marketing firm that specializes in naming, or to come up with a name on their own. A good brand name should be short and simple; easy to spell, pronounce, and remember; pronounceable in only one way; suggestive of the product's benefits; adaptable to packaging and labeling needs or to any advertising medium; not offensive or negative; not likely to become dated; and legally available for use. In order to create a brand name for a product without the help of experts, a small business owner should begin by examining names already in use in the market and evaluating their effectiveness. The next step is to identify three to five attributes that make the product special and should help influence buyers to choose it over the competition. At the time of choosing a brand name, various aspects require careful consideration. Very often, manufacturers invite brand names from the consumers, dealers, and agencies. The following are some of the general considerations through no hard and fast rule can be laid down: 1. The name should readily come of the minds of customers. It should be easy to pronounce. 2. The name should be distinctive. 2

3. The name should be appropriate for the product. 4. It should be easy to remember. 5. It should, be adaptable to new products 6. It should be registrable The brand names, packaging, etc., are only ancillary things and the consumer is really influenced by quality and performance of the product. In the end, therefore, the success or failure of a product is determined primarily by the worth of the product in relation to those it competes with. The brand name is a detail-an important and sometimes valuable detail, but a detail nonetheless.

Ans. 2 (a) Brand equity refers to the intangible value that accrues to a company as a result of its successful efforts to establish a strong brand. A brand is a name, symbol, or other feature that distinguishes the company's goods or services in the marketplace. Consumers often rely upon brands to guide their purchase decisions. The positive feelings consumers accumulate about a particular brand are what makes the brand a valuable asset for the company that owns it. Alan Mitchell of Marketing Week described brand equity as "the storehouse of future profits which result from past marketing activities." Brand equity is the value built-up in a brand. The value of a company's brand equity can be calculated by comparing the expected future revenue from the branded product with the expected future revenue from an equivalent non-branded product. This calculation is at best an approximation. This value can comprise both tangible, functional attributes (eg. TWICE the cleaning power or HALF the fat) and intangible, emotional attributes (eg. The brand for people with style and good taste). It can be positive or negative. Positive brand equity is created by a history of effective promotion and consistently meeting or exceeding customer expectations. Negative brand equity is usually the result of bad management. Positive brand equity can be a significant barrier to entry for prospective competitors. The greater a company's brand equity, the greater the probability that the company will use a family branding strategy rather than an individual branding strategy. This is because family branding allows them to leverage off the equity accumulated in the core brand. This makes new product introductions less risky and less expensive. David Aaker defined "brand equity" as follows: "Brand equity is a set of assets (and liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm and/or that firm's customers. The major asset categories are: According to Aaker (1991), have five dimensions 1. Brand loyalty
2. Brand awareness

3. Perceived quality 4. Brand associations

Rajendra Srivastava and Allan D. Schocker, discussed the scope as Brand equity subsumes brand strength and brand value. Brand Strength is the set of associations and behaviors on the part of brands customers, channel members, and parent corporations that permits the brand to enjoy sustainable and differentiated competitive advantages. Brand value is the financial outcome of managements ability to leverage brand strength via tactical and strategic actions in providing superior current and future profits and lowered risks

Ans. 2 (b) Although measuring brand equity can be difficult, it can also provide managers with a good indication of their company's future profitability. "Companies which develop good measures of their brand equity have an early warning indicator of likely future profit trends, and can get a much better feel of the dangers of short-termism," Mitchell noted. "If brand equity is falling, you're storing up trouble for yourself. If brand equity is rising, you're investing in future performance, even if it's not showing through in profits today. Real business performance therefore equals short-term results plus shifts in brand equity." Unfortunately, measuring brand equity is not as simple as counting the number of people who recognize a brand name or symbol. It is also dangerous to assume that simply because its brand is well-known, a company enjoys strong or growing brand equity. In fact, the most powerful brands can easily be diluted by company missteps or inconsistent marketing messages. Mitchell explained that the best way to measure brand equity depends on the particular company and its industry. For example, in some cases assessing consumer perceptions of product quality may provide the best indication of brand equity. In other cases, more traditional business measures such as customer satisfaction or market share may be more closely correlated with brand equity. Finding an appropriate measure of brand equity is vital in order for companies to ensure that they protect this valuable asset. In his Risk Management article, Knapp claims that managers must remain constantly vigilant to protect their brand equity, since a declining brand image poses a significant risk to company earnings. If a brand loses its distinctive image in the minds of consumers, then the branded product becomes more like a commodity and must compete on the basis of price rather than value. Customer loyalty decreases, which has a corresponding negative effect on market share and profit margins. In order to prevent this decline, Knapp recommends that companies consider the impact of major decisions on consumer perceptions and brand equity. Every action taken by managementincluding the introduction of new products or advertising strategies, or the decision to lay off employees or relocate a factoryshould be assessed for its effect on brand equity. Brand performance can be easily be tracked by identifying brand value chain. 4

Brand value is a structured approach to assessing the sources and outcomes of brand equity and the manner by which marketing activities create brand value.

Ans. 3 (a) Advertising is one of the activities that direct the flow of goods and services from producers to consumers. In advanced industrial economies, marketing considerations play a major role in determining corporate policy. Once primarily concerned with increasing sales through advertising and other promotional techniques, corporate marketing departments now focus on credit policies (see credit), product development, customer support, distribution, and corporate communications. Marketers may look for outlets through which to sell the company's products, including retail stores, direct-mail marketing, and wholesaling. They may make psychological and demographic studies of a potential market, experiment with various marketing strategies, and conduct informal interviews with target audiences. Marketing is used both to increase sales of an existing product and to introduce new products. In addition to enhancing or reinforcing an image of an organization in the minds of consumers, advertising can serve to support the sales effort. There are many ways an organization can advertise its product to the consumers. The trick is to maximize the efficiency of the advertising effort. Thus, organizations must first determine the images or associations they want to create or reinforce Advertising is one of the key elements in building a brand personality, which is equally important to the marketer & consumers. Brand personality is distinct, non preemptible enduring and associates the brand with certain values. Brand personality acts a potent brand differentiator and offers sustainable competitive advantage. Advertising by creating or reinforcing brand's personality enhances brand value or equity , which in turn can be leveraged through brand extension. Brand personality also helps brands to gain market share, command price premium and insulates from discounting Brands. Consumers as part of self-defining process, use possessions to describe themselves and also to which group they belong, especially in socially conspicuous product categories such as clothing, automobiles etc.(what is me is related to what I have). Brands make personality statements; users associate a brand with a strong personality. Key advertising elements such as endorser, user imagery, symbols and execution elements contribute to Brand personality.

Ans. 3 (b) Advertising must shift from monologue to dialogue For the early history of advertising, the miracle of mass-market communication was a great success with businesses and the consumer, although the contemporary consumer wants to be addressed in a different tone and a different manner. As Giles Lury (1998) has described it, the childlike consumer, who was happy to accept being told what to do, has grown into an adult, and now demands equality of communication. The reality is that the previous type of advertising never was communication in the true sense, since it was an untargeted and one-way message. Mass media were used to broadcast open and unsolicited messages to an accepting public. It is for these reasons that many commentators have suggested the death of advertising because it is unable to deliver the depth and precision of conversation that businesses would like to have with their customers. Technologies like computer databases and narrowcast media have also played a part in enabling these focused modes of relationship marketing. The use of sophisticated database knowledge can pinpoint particular user groups with the precision of the surgeons knife. The use of electronic loyalty cards lets retailers track customer movements and preferences on a single product basis. The development of the Internet, cable television and expansion of telephony have all added to the ability to target specific customers with specific brand propositions. The ability to achieve all of these is due to the massive increase in computing power that is available, even on a desktop model. The result of these shifts towards selective and two-way relationship marketing is that traditional advertising has lost some of its power. The use of direct marketing has increased rapidly to fulfil the needs of business in the last 10 years. Database marketing is more targeted in terms of its message, its audience and its timing. Furthermore, its effectiveness is more easily measured, and constant improvements are being made.

Ans. 4 (a) Brand extension or brand stretching is a marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. The new product is called a spin-off. Organizations use this strategy to increase and leverage brand equity. An example of a brand extension is Jello-gelatin creating Jello pudding pops. It increases awareness of the brand name and increases profitability from offerings in more than one product category. A brand's "extendibility" depends on how strong consumer's associations are to the brand's values and goals. Ralph Lauren's Polo brand successfully extended from clothing to home furnishings such as bedding and towels. Both clothing and bedding are made of linen and fulfill a similar consumer function of comfort and hominess. Arm & Hammer leveraged its brand equity from basic baking soda into the oral care and laundry care categories. By emphasizing its key attributes, the cleaning and deodorizing properties of its core product, Arm & Hammer was able to leverage those attributes into new categories with success. Another example is Virgin Group, which was initially a record label that has extended its 6

brand successfully many times; from transportation (aeroplanes, trains) to games stores and video stores such a Virgin Megastores. In the 1990s, 81% of new products used brand extension to introduce new brands and to create sales. [1] Launching a new product, is not only time consuming but also needs a big budget to create awareness and to promote a product's benefits. [2] Brand extension is one of the new product development strategies which can reduce financial risk by using the parent brand name to enhance consumers' perception due to the core brand equity. Product extensions are versions of the same parent product that serve a segment of the target market and increase the variety of an offering. An example of a product extension is Coke vs. Diet Coke in same product category of soft drinks. This tactic is undertaken due to the brand loyalty and brand awareness they enjoy consumers are more likely to buy a new product that has a tried and trusted brand name on it. This means the market is catered for as they are receiving a product from a brand they trust and Coca Cola is catered for as they can increase their product portfolio and they have a larger hold over the market in which they are performing in. Regardless of the branding treatment, extensions can occur in the following ways: you manufacture the product (or supply the service) yourself you acquire a company that makes the product (or supplies the service) you source the product or service from some other organization, but put your name on it you license your name for use by another company that makes the product or supplies the service.

(Use brand licensing to extend the brand into new categories, expand the meaning of the brand, reinforce key brand associations, build your brand as a badge, or bring your brand to life in new ways. You should avoid licensing your brand where it doesnt make sense just to make a few extra revenue dollars. Where the licensing department resides in your organization structure will have a large impact on how well licensing is used to build (versus bleed) the brand.) you form an alliance or joint venture with another company to supply the product or service Obviously, the pros and cons of the various methods include speed to market, fit with core competencies, upside revenue and profit potential, asset risk, amount of control over the brand delivery, and the degree to which you are committed to the category in the long term.

Ans. 4 (b) Advantages of brand extension strategy are:1. It makes acceptance of new product easy.

a. It increases brand image. b. The risk perceived by the customers reduces. 7

c. The likelihood of gaining distribution and trial increases. An established brand name increases consumer interest and willingness to try new product having the established brand name. d. The efficiency of promotional expenditure increases. Advertising, selling and promotional costs are reduced. There are economies of scale as advertising for core brand and its extension reinforces each other. e. Cost of developing new brand is saved. f. Consumers can now seek for a variety. g. There are packaging and labeling efficiencies. h. The expense of introductory and follow up marketing programs is reduced.
2. Consumer knowledge: The remaining strong brand used to promote a new product makes it less

critical to create awareness and imagery. The association with the main brand is already done and the main task is communicating the specific benefits of the new Innovation Taylor.
3. Consumer trust: The existing well-known-strong brands represent a promise of quality, useful

features etc. - for the consumer. Thus, the extension will benefit from this fame and this good opinion about the brand to create a compelling value proposition in a new segment or markets Taylor. A satisfied customer by an extension will be more willing to repurchase the same brand. For example in the sport field, a customer will more likely prefer a brand offering a complete equipmentshoes, outfit and accessories. 4. Lower cost : compared to launching a new brand, brand extension strategy is cheaper especially because the new product use the name of an already well-known brand, the advertisement budget for brand extension are smaller than for new brands.
5. Enhancement of brand visibility: when a brand appears in another field it can be a more effective

and efficient brand-building approach than spending money on advertising. The relationship with loyal customers will be strengthen because they will use the brand in another context and it is expected as well that they will prefer this brand to the competitors one.
6. Provide a source of energy for a brand: The brand image- especially when the brand is a bit tired- is

expected to be reinforced by the extension. Indeed, this latter gives energy to the brand because it increases the frequency with which the brand is associated with good quality, innovations and large range of products. In addition, the customer sees the brand name more often and it can strengthen his idea that it is a good one.
7. Defensive strategy: An extension can prevent competitors from gaining or exploiting a foothold in

the market and can be worthwhile even though it might struggle. For e.g. Microsoft for instance has decided to operate in different areas with the aim of limiting the ability of competitors to encroach on core business areas.

Ans. 9 (a) 8

Intellectual Property Rights An intellectual property right is a legal concept that confers rights to owners and creators of the work, for their intellectual creativity. Such rights can be granted for areas related to literature, music, invention etc, which are used in the business practices. In general, the intellectual property law offers exclusionary rights to the creator or inventor against any misappropriation or use of work without his/her prior knowledge. Intellectual property law establishes equilibrium by granting rights for limited duration of time. Every nation has framed their own intellectual property laws. But on international level it is governed by the World Intellectual Property Organization (WIPO). The WIPO convention lays down following list of the activities or work which are covered by the intellectual property rights Industrial designs Scientific discoveries Protection against unfair competition Literary, artistic and scientific works Inventions in all fields of human endeavor Performances of performing artists, phonograms and broadcasts Trademarks, service marks and commercial names and designations All other rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields.

Types of Intellectual Property Rights Intellectual Property Rights signifies to the bundle of exclusionary rights which can be further categorized into the following heads

Copyright - Copyright, one of the forms of intellectual property right, offers exclusive rights for protecting the authorship of original & creative work like dramatic, musical and literary in nature. Patent - A patent is termed as the exclusionary rights given by the government or the authorized authority to its inventor for a particular duration of time, in respect of his invention. Trademark - The trademark or trade mark, symbolized as the and , is the distinctive sign or indication which is used for signifying some kind of goods or/and services and is distinctively used across the business Trade Secrets - Trade secret points towards a formula, pattern, any instrument, design which is kept confidential and through which any business or trade can edge over its rival and can enjoy economic gain. Utility Model - The utility model is the intellectual property right for protecting the inventions.

Geographical Indication - Geographical Indication (GI) signifies to the name or sign, used in reference to the products which are corresponding to the particular geographical area or somewhat related to the origin like town, region or nation Industrial Design Rights - Industrial design rights are defined as the part of the intellectual property rights which confers the rights of exclusivity to the visual designs of objects which are generally not popular utilitarian.

Intellectual Property Rights in India India has defined the establishment of statutory, administrative and judicial framework for protecting the intellectual property rights in the Indian territory, whether they connotes with the copyright, patent, trademark, industrial designs or with other parts. Tuning with the changing industrial world, the intellectual property rights have continued to strengthen its position in the India. In 1999, the government has passed the important legislation in relation to the protection of intellectual property rights on the terms of the worldwide practices and in accordance to the India's obligations under the Trade Related Aspects of Intellectual Property Rights.

Ans. 9 (d) Brand management is consciously providing a product with an identity that is understood on all levels. This means both internally and externally and includes customers, employees, suppliers, and vendors. Understanding the niche in which the product resides gives it a relevant differentiated benefit (RDB). This translates into the purchase of that product over that of a competitor. The key lies in developing a brand for corporation where in which other business can be confident of. Modern globalized, technology driven world has thrown new challenges to branding. Customers/consumers have more access to information than ever before. Internet has become a strong tool through which product information proliferate raising expectation bar for companies. Companies have responded to this challenge by improvising in the way they run their marketing campaigns, by exploring new avenues to showcase their products. Like for example; sponsorship of events and teams or association with social cause. In a given market innumerable products and services are offered by different companies. The identity developed for this product and services over a period of time, through marketing strategies, sturdy performance etc is referred to as brand. A stage is reached where brand become synonymous with product e.g. - coffee-Starbucks, donut-Dunkin Donuts, online retail-Ebay etc. This process is called strategic brand management. As a brand, the game is one of being defined or being self-defined. Good examples of this are eBay with its reputation for system failures/outages and Amazon.com with its reputation for being the bookseller of choice online. On the one hand, eBay is being defined by its inability to guarantee 24-7 performance to its users. On the other hand, Amazon.com took its first mover web site advantage and leveraged its presence to include selling additional goods besides books. Each represents a very different branding story. 10

Good branding begins with knowing what makes the product special and exploiting its advantages. Branding may be for a specific product or could cover an entire corporate image. As an example, Bavarian Motor Works (BMW) is known as the "ultimate driving machine." This rallying cry applies to all its products to include automobiles, motorcycles, and sport utility vehicles. BMW's communication strategy and brand equity comes with its message about speed, driving, and handling. Similarly at General Motors (GM), products do not merely have a single brand identity. GM has multiple products and uses multiple venues for their individual products. Its automobile selection ranges from Corvettes to Cadillacs. As an example, Cadillac's branding message extols the virtues of art and science. Cadillac showcases proactive safety features; precision all weather controls; and infotainment luxuries such as Onstar, the in-vehicle safety, security and information service that uses Global Positioning System (GPS) satellite technology and wireless communication to link the driver and vehicle to 24-hour realtime, person-to-person help. However, GM stands for one thing and has an identifiable rallying cry. Brand management is the philosophy and core behind all business development. The rallying cry defines and makes for both an internal and external image/presence. Constantly refining the rallying cry is part of brand management. Branding is the arena that puts the "big picture" perspective into focus and determines where the company takes and makes its future.

Ans. 9 (e) Common Branding Problems - The Seven Deadly Sins of Branding Sin #1: The superior product fixation To "be better than" doesn't mean as much as it used to. The solution is first, creating a meaningful and relevant brand identity and reason for being and second, ensuring that that image connects your productnot simply it's superior attributes- to your audience. Successful examples of this are Nike's "Just Do It" and Apple's "Think Different" campaigns. Sin #2: The "no-one-can-touch-us" syndrome This pitfall rears its ugly head whenever a company reaches any level of complacency. If you start feeling complacent, take a fresh, honest look at your brand and you'll find, like life, nothing stays level for long. The son of IBM's founder, Thomas Watson Jr., stated while chief of IBM, "...We do not think that good design can make a product good.... But we are convinced that good design can materially help make a good product reach its full potential." Isn't it time we all listened and used the power of design? Sin #3: The brand called "Fear" Simply, if you're overly concerned about what associates think versus being overly concerned about your brand, then getting anywhere near branding is a bad career move for everyone involved. The opposite side of this coin is a firm belief in one's product, a willingness to deliver what's promised, and strength of conviction. One doesn't need to be an ogre, but one must believe in one's actions. This cousin to complacency-essentially unwillingness to investigate, face facts, evolves and challenge- has killed many possibly great brands, leaving only the competition happier, and stronger. 11

Sin #4: Ignoring the design and image your brand conveys You'll also find many great products but, with most ignoring their design and image, only a handful have become great brands. What part does image play in the real world of branding? Everything. Fact: About 9 years ago, Minute Maid found that other orange juice companies were "borrowing" their signature black carton. What once was a point of distinction had now become "generic." Add to this the expanding choices given to consumers-bottled waters, flavored waters, iced teas, and bottled coffee beverages-and retaining market share had become a major issue for Minute Maid. Revamp the Minute Maid packaging line. The outcome? Volume sales increased more than 24%, with convenience store sales exceeding 34%. Sin #5: Brand schizophrenia and anarchy The confusion between building a brand, being consistent, keeping a brand alive and reinventing a brand can be so mish-mashed that disaster strikes. Random change is not the same as planned evolution of a brand. Just as true is that boring, stagnant messaging is not the same as brand consistency. A good rule of thumb is one laid down by Sir John Egan, chief executive for the world's leading international airport group, "Defining the experience that customers want becomes a criterion by which you can judge the design work you commission." Sin #6: The human connection ratio The frailty of a brand is in direct ratio to the extent a brand fails to connect with its consumer. Flaunting one's wares is about as popular, and effective, as cramming in a term paper in overnight. Every strong brand has in some way become a product that represents what that customer is seeking: ease, convenience, power, stamina, pride, beauty. But in each case, it's the human factor that can be missed. Every product does have, as its end use, a human who is buying the product for a reason. Find the reason, keep it on personal terms, and you're well on your way to avoiding this pitfall. Sin #7: Forgetting where brands live Brands do not live anywhere but in the minds and hearts of the consumers and prospects. The job of branding is to get your product to the point of having an army of believers who stand by that brand, and what it means, in their mind.

Ans. 9 (f) A global brand is one which is perceived to reflect the same set of values around the world. Global branding is an important activity or task that must be done by different businesses or companies that are planning to get involved in the global market, more importantly in launching their global brand. There have been many multinational companies that are altering their brand portfolios in order to cater to the needs of their global brands For instance, Procter & Gamble or P&G as well as Unilever both reduced the number of the brands that they are marketing around the world by disposing those products or brands that has a limited global potential Another example is the case of the telecom giant Vodafone, the company had replaced their local brand name by global Vodafone name. In global branding, the surface of the brands submitted to are usually the formal brand identity such as the logo, symbol, trademark, 12

brand name, colors as well as the shapes; the brand position, the different marketing mix, the distribution, different strategic principles as well as the advertising. All of the major examples of global brands are using their fully globally standardized techniques. Global branding is one of the answers in the problem that is caused by the fast growing and developing global market that is pushed or caused by the globalization, different technologies as well as the innovation. Advantages of global branding 1. Economies of scale in production and distribution 2. Lower marketing costs 3. Power and scope 4. Consistency in brand image 5. Ability to leverage good ideas quickly and efficiently 6. Uniformity of marketing practices 7. Helps to establish relationships outside of the "political arena"
8. Helps to encourage ancillary industries to be set up to cater for the needs of the global player

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