Branding Is The Art and Cornerstone of Marketing.

Download as ppt, pdf, or txt
Download as ppt, pdf, or txt
You are on page 1of 30

MARKETING MANAGEMENT

“Branding is the
art and
cornerstone
of marketing.”
Branding
• Brand is a name, term, sign, symbol, or
design or a combination of them intended
to identify the goods or services of one
seller or group of sellers and to differentiate
them from those of competitors.
Ex:
Brand Equity
Brands vary in the amount of power and value they have in
the market place.

5 levels of customer attitude towards a brand


1. Customer will change brands especially for price
reasons – No Brand Loyalty
2. Customer is Satisfied. No reason to change the brand.
3. Customer is Satisfied and would incur costs by
changing brand.
4. Customer values the brand and sees it as a friend.
5. Customer is devoted to the brand.

Brand Equity is highly related to how many customers are in


classes 3, 4, or 5.
Brand Equity (cont…d)
Brand Equity is defined as the unique set of brand
assets and liabilities that is linked to a brand. It is
the net result of all the investment and effort that
a marketer puts into building a brand.

Usership of the brand, consumer loyalty, perceived


quality, positive symbols and favourable
associations around the brand … a bundle of all
these attributes together result in brand equity.
Brand Equity (cont..d)
Some of the Most valuable brands in the
world are
Brand Equity, a Financial
Concept
• paid Rs.40 crore for buying out

Parle brands – Thums Up,


Limca, Gold Spot and Citra

• bought over Transelektra’s Good


Knight and Hit for Rs.80 Crores
High Brand Equity provides a
number of competitive advantages
 The Company will enjoy reduced marketing costs because of
consumer brand awareness and loyalty

 The Company can charge a higher price than its competitors


because the brand has higher perceived quality.

 The Company will have more trade leverage in bargaining


with distributors and retailers because customers expect them
to carry the brand.

 The Company can more easily launch extensions because


the brand name carries high credibility.

 The brand offers the Company some defense against price


competition.
SELECTING BRAND NAME

A good brand name will be distinctive, easy to pronounce and


remember.

Different Approaches in selecting brand names

1. Names communicating the functions/attributes of


the product
Ex: GoodKnight, the mosquito repellant, offers a good night’s
sleep
Boost is the energy booster drink
Aquaguard gives protected water
Fair & Lovely promises fair and lovely skin
TVS named its tyre as Srichakra
Ingredient Branding
Selecting Brand Name Cont..d)

2. Names, which communicate the


specialty of the product
Ex: The name “Taj” given to the hotel chain
of Indian Hotels is an attempt to recapture
and reflect the Moghul splendour
Selecting Brand Name (Cont..d)

3. Use of Acronyms

Sometimes brand names are acronyms.


Ex: originated from Anand Milk Union Ltd
MRF originated from Madras Rubber Factory
Selecting the Logo
Logo enhances recognition by the provision
of a symbol of identity. A logo is a pictorial
symbol intended to communicate with the
consumers.

The logo can be made of anything- words,


alphabets, pictures, graphic designs or
even a splash of colours.
Selecting the Logo (cont..d)
Brand Name Logo

Kelvinator Penguin Bird


Goodlass Nerolac Tiger
Asian Paints Gattu
Air India Maharaja
Onida The green-eyed devil
MRF radial The man with steel muscles
Brand-Name Decision
1. Individual names: Each product of the company
is given an independent brand name.
Ex: HLL, gives separate brand names for most of its
products
In bath soaps line, HLL has several brands like Dove,
Lux, Liril, Hamam, Lifebuoy, Pears.
In detergents line, it has Surf, Rin, Sunlight, & Wheel
In tooth pastes line, it has Pepsopdent, Close-up
Brand-Name Decision (Cont..d)
2. Blanket Family Names: Different products of the company
are marketed under one brand name.

Ex: Amul is the common brand name for the company’s milk
powder, butter, ghee and chocolates
Videocon is a family brand name for a variety of products of
Videocon Corporation. Its TVs, VCRs, refrigerators,
washing machines and air conditioners go under the
same name.
Johnson & Johnson sells many of its baby care products
under the Johnson’s brand name – Johnson’s baby
powder, Johnson’s baby soap, Johnson’s baby shampoo
etc
Brand-Name Decision (Cont..d)

3. Separate family names for all products


Ex: has also developed certain umbrella
brands.
is an umbrella brand for its
tea and coffee products.
Separate family names for all products

‘s Kissan is an umbrella
brand for its food line.
‘s Lakme is an umbrella brand to cover

a variety of products ranging from nail


polish to perfumes
Separate family names for all products
Ex: ‘s is an umbrella

brand for
several food items like noodles, soups,
sauces, pickles, ketchups and jams.

Milkmaid for condensed milk.


Cerelac for baby food
Brand-Name Decision (Cont..d)
4. Company trade name with individual
product names
Ex: Godrej Cinthol, Godrej No:1
Bajaj Pulsar, Bajaj Discover
Hero Honda Karizma, Hero Honda CBZ
Kellogg’s Corn Flakes, Kellogg’s Raisin Bran
Cadbury’s Dairy Milk, Cadbury’s 5 Star
Line Extensions
• Existing Brand names extended to new forms,
flavours, sizes of the existing product category.

Ex: Lifebuoy Personal,


Lifebuoy Active
Lifebuoy Gold
Lifebuoy Plus

Ex: Surf Ultra, Surf Excel, Surf International

Ex: Colgate Dental Cream, Colgate Gel, Colgate


Calciguard, Colgate Total, Colgate Cibaca,
Colgate Herbal, Colgate Salt, Colgate Maxfresh
Advantages of Line Extension
• It strengthen brand power and keep brand
live and modern.
• Changing consumer tastes can be
accommodated through line extensions.
• Advertising & other promotion costs can be
reduced to some extent.
Brand Extension
• It is an effective tool/weapon in brand
management, and it basically means
extending a brand name to new products.
Brand Extensions
Existing brand names extended to new product
categories

Ex: Honda uses its company name to cover such


products as cars, motorcycles, scooters, marine
engines etc.,
Brand Extension

Existing brand names extended to new related product categories

Ex: Pond’s Dreamflower Talc


Pond’s Dreamflower Talc Magic
Pond’s Cold Soap
Pond’s Face Wash
Pond’s Cold Cream
Pond’s Moisturising Lotion
Pond’s Dreamfower Soap
Ex: initially was a brand
of noodles. Later, the
brand name was extended to other product
lines in the related category food- Maggi
Ketchup, Maggi Soup etc.

Ex: Dettol Soap-antiseptic soap


Dettol Plaster-antiseptic bandage
Dettol Handwash-antiseptic wash
Advantages of Brand Extension
• Helps the new item to acquire instant brand
recognition
• Saves costs- a brand extension costs much
less than launching a new brand.
• When a brand lends for premium pricing,
benefit of brand extension is all the more
significant
• Extensions also help build the brand into a
‘superbrand’ in the minds of consumers.
Multibrands
• New brand names introduced in the same
product category.
Ex: HLL is using Surf, Rin, Wheel, Sunlight,
Ala brand names for its fabric wash product
line.

New Brands
• New brand names in the new product
categories
Co-brands
• Co-branding also called dual branding, in which
two or more well-known brands are combined in
an offer. Each sponsor expects that the other
brand name will strengthen preference or
purchase intention.
Ex: Intel’s consumer-directed brand campaign with
IBM, Dell, and Compaq convinced many personal
computer buyers to buy only computers brands
with “intel inside”.
Google on AirTel
Reliance with LG mobiles

You might also like