Brand Management Notes(amity university)

5/25/2018

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Brand management

Brand management begins with having a thorough knowledge of the term “brand”. It includes developing a

promise, making that promise and maintaining it. It means defining the brand, positioning the brand, and delivering the brand. Brand management is nothing but an art of creating and sustaining the brand. Branding makes customers committed to your business. A strong brand differentiates your products from the competitors. It gives a quality image to your business. Brand management includes managing the tangible and intangible characteristics of brand. In case of product brands,

the tangibles include the product itself, price, packaging, etc. While in case of service brands, the tangibles include the customers‟ experience. The intangibles include emotional connections with the product / service. Branding is assembling of various marketing mix medium into a whole so as to give you an identity. It is nothing but capturing your customers mind with your brand name. It gives an image of an experienced, huge and reliable business. It is all about capturing the niche market for your product / service and about creating a confidence in the current and prospective customers‟ minds that you are the unique solution to their

problem. The aim of branding is to convey brand message vividly, create customer loyalty, persuade the buyer for the product, and establish an emotional connectivity with the customers. Branding forms customer perceptions about the product. It should raise customer expectations about the product. The primary aim of branding is to create differentiation. Strong brands reduce customers‟ perceived monetary, social and

safety risks in buying goods/services. The customers can better

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imagine the intangible goods with the help of brand name. Strong brand organizations have a high market share. The brand should be given good support so that it can sustain itself in long run. It is essential to manage all brands and build brand equity over a period of time. Here comes importance and usefulness of brand management. Brand management helps in building a corporate image. A brand manager has to oversee overall brand performance. A successful brand can only be cre Understanding Brand - What is a Brand ?

Brands are different from products in a way that brands are “what the consumers buy”, while products are “what concern/companies make”. Brand is an accumulation of emotional and functional

associations. Brand is a promise that the product will perform as per customer‟s expectations. It shapes customer‟s expectations about the product. Brands usually have a trademark which protects them from use by others. A brand gives particular information about the organization, good or service, differentiating it from others in marketplace. Brand carries assurance the characteristics that make the product or an service unique.about A strong brand is a means of making people aware of what the company represents and what are it‟s offerings. To a consumer, brand means and signifies:

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Source of product Delegating responsibility to the manufacturer of product Lower risk Less search cost Quality symbol Deal or pact with the product manufacturer Symbolic device


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Brands simplify consumers purchase decision. Over a period of time, consumers discover the brands which satisfy their need. If the consumers recognize a particular brand and have knowledge about it, they make quick purchase decision and save lot of time. Also, they save search costs for product. Consumers remain committed and loyal to a brand as long as they believe and have an implicit understanding that the brand will continue meeting their expectations and perform in the desired manner consistently. As long as the consumers get benefits and satisfaction from consumption of the product, they will more likely continue to buy that brand. Brands also play a crucial role in signifying certain product features to consumers. To a seller, brand means and signifies:

Basis of competitive advantage Way of bestowing products with unique associations Way of identification to easy handling

Way of legal protection of products‟ unique traits/features

Sign of quality to satisfied customer Means of financial returns

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A brand, in short, can be defined as a seller‟s promise to provide

consistently a unique set of characteristics, advantages, and services to the buyers/consumers. It is a name, term, sign, symbol or a combination of all these planned to differentiate the goods/services of one seller or group of sellers from those of competitors. Some examples of well known brands are Mc Donald’s’, Mercedes-Benz, Sony, Coca Cola, Kingfisher, etc.

A brand connects the four crucial elements of an enterprisecustomers, employees, management and shareholders. Brand is nothing but an assortment of memories in customers mind. Brand represents values, ideas and even personality. It is a set of functional, emotional and rational associations and benefits which have occupied target market‟s mind. Associations are nothing but


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the images and symbols associated with the brand or brand benefits, such as, The Nike Swoosh, The Nokia sound, etc. Benefits are the basis for purchase decision ated if the brand management system is competent Brand Attributes rand Attributes portray a company‟s brand characteristics. They A

signify the basic nature of brand. Brand attributes are a bundle of features that highlight the physical and personality aspects of the brand. Attributes are developed through images, actions, or presumptions. Brand attributes help in creating brand identity. A strong brand must have following attributes: 1. Relevancy- A strong brand must be relevant. It must meet people‟s expectations and should perform the way they

want it to. A good job must be done to persuade consumers to buy the product; else inspite of your product being unique, people will not buy it. 2. Consistency- A consistent brand signifies what the brand stands for and builds customers trust in communicates brand. A consistent brand is where the company message in a way that does not deviate from the core brand proposition. 3. Proper positioning- A strong brand should be positioned so that it makes a place in target audience mind and they prefer it over other brands. 4. Sustainable- A strong brand makes a business competitive. A sustainable brand drives an organization towards innovation and success. Example of sustainable brand is Marks and Spencer‟s. 5. Credibility- A strong brand should do what it promises. The way you communicate your brand to the audience/


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customers should be realistic. It should not fail to deliver what it promises. Do not exaggerate as customers want to believe in the promises you make to them. 6. Inspirational- A strong brand should transcend/ inspire the category it is famous for. For example- Nike transcendent Jersey Polo Shirt. 7. Uniqueness- A strong brand should be different and unique. It should set you apart from other competitors in market. 8. Appealing- A strong brand should be attractive. Customers should be attracted by the promise you make.

Product Strategy

People buy brands and not products and services. Brands are becoming more numerous and the market is more competitive. Product life cycles are becoming shorter as a result of greater choice and new technologies. It is important to plan and manage both products and brands in order to survive in today's environment. Topics covered in the program, include: the role of the brand manager, the development of the product plan; managing mature products - products classifications, product mix, product life cycle management, the new alternative life cycle model, branding and the development of brand equity, and the introduction to the 4R's; managing new products - the new product development process, the packaging decision, marketing metrics, brand valuation, and customer equity Branding challenges and opportunities

Brands build their strength by providing customers consistently superior product and service experiences. A strong brand is a promise or


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bond with customers. In return for their loyalty, customers expect the firm to satisfy their needs better than any other competitors. Brands will always be important given their fundamental purpose – to identify and differentiate products and services. Good brand makes people‘s lives a little easier and better. People are loyal to brands that satisfy their expectations and deliver on its brand promise. The predictably good performance of a strong brand is something that consumer will always value. The challenges to brands 1) The shift from strategy to tactics: - With the increasing pressure to generate ever-improving profitability, it is often considered a luxury for managers to develop long-term strategic plans. This is further exacerbated by short-term goal setting, which is frequently designed primarily for the convenience of the financial community. 2) The shift from advertising to promotions: - As a consequence of the increasing pressure on brand manager to achieve short-term goals, there is a temptation to cut back on advertising support, since it is viewed as a long-term brand-building investment, in favour of promotions which generate much quicker short-term results. 3) On-Line shopping: - The Internet is facilitating on-line shopping. On-line is different fromand traditional because: • Brandsshopping are available all the time from allmail overorder the world; • Information and interactions are in real time; • Consumers can choose between brands which meet their criteria, as a result of selecting information which is in a much more convenient format for them, rather than the standard catalogue format. This poses threats to brands, some components of added value, agent or the retail outlet which originally added value by matching consumers with suppliers, may be eliminated. 4) Opportunities from technology: - Brand marketers are now able to take advantage of technology to again a competitive advantage through time. Technology is already reducing the lead time needed to respond rapidly to changing customers need and minimizing any delays in the supply chain.


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5) More sophisticated buyers: - In business-to-business marketing, there is already an emphasis on bringing together individuals from different departments to evaluate suppliers‘ new brands . As inter departmental barriers break down even more, sellers are going to face

increasingly sophisticated buyers who are served by better information system enabling them to pay off brand suppliers against each other. 6) The growth of corporate branding:- With media inhabiting individual brand advertising, many firms are putting more emphasis on corporate branding, unifying their portfolio of brands through clearer linkages with the corporation, which clarifies the those all the line brands adhere to. Through corporate identity programfunctional aspects of individual brands in the firm‘s portfolio can be augmented, enabling the consumer to select brands through assessment of the values of competing firms. Firms developed powerful corporate identity programmes by recognizing the need first to identify their internal corporate values, from which flow employee attitudes and specific types of staff behavior secondly, to devise integrated communication programmes for different external audiences. Strategic Brand Management Process The Building, Leveraging, Identifying, and Protecting Brands (BLIP) process is a new framework for understanding, managing, and organizing the full scope of brand management task. It emphasizes the need to consider not just how to build and advertise brands, but how best to leverage them, how to identify the position of that they hold, and how to protect past brand investment. Strategic brand management is not only a question of building brands, but also using a broader consideration framework when managing established brands. Marketers should consider the BLIP process when managing their brands. To

maintain healthy and vital brands, firms need to pay attention to brand building, but should not neglect important issues related to brand leveraging, identification, and protection. It identifies four components of branding : 1. Building 2. Leveraging


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3. Identifying 4. Protecting Brand 1. Building Brand:- As a first step, marketers should define what they want their brand to

represent(brand identity). A brand identity can be pictured in the form of a map with concentric circles, with the core defining elements of thebrand in the center and secondary elements of the brand in an outer circle. Once marketer have a clear idea of the brand‘s iden tity, they can use marketing tool to build the brand. Using a 4 P‘s framework (product, price, place, promotion), marketer can create a promotional strategy that utilizes both promotional advertising and inventive approaches. 2. Leveraging Brands:- Marketers want to achieve a return on their investment, and one vital decision is how to best utilize their brand assets. Marketers may choose to leverage some of the brand‘s established equity to create line extension, brand extension, or co-brand products. a. Line Extension : Adding a new form of a product or service is generally regarded as the easiest extension, but is likely to generate low incremental revenue. b. Brand Extension : This type of extension differs from a line extension that it consist of extending the products or services brand into a newincategory. A brand extension has the benefits of real growth opportunity, but the drawback is the potential for costly mistakes. c. Co-Branded Products : This method of leveraging brands consist of an alliance of complimentary brands. This can often take the form of ingredient branding. A good marketing strategy will consider whether co-branding is appropriate for particular situations. 3. Identifying and Measuring Brands:- The questions of identifying brands considers: What does the brand mean to customers? What product associations do customers have and their attitudes toward the brand? A marketer should also consider the non-product associations that accompany the brand. For ex. What colors are associated with the brand? What is the brand‘s personality and what are the perceptions of the brand‘s country of origin?


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Monitoring customer‘s impression of all these important elements of the brand plays an important role in brand management. 4. Protecting the Brand:- The area of strategic brand management has historically been shortchanged, being forgotten as the brand building bandwagon took off. However, it is not taking it‘s rightful place as a key element of strategic brand management. Traditionally, protection come from legal teams whose work with trademark remains an element of protecting the brand but is, by no means, the entire protection needed. designing Brand strategy

Everywhere there is revolution and disintegration. Wave after wave of technological innovation comes upon us more rapidly, engulfing us, confusing us more profoundly. Few marketing organizations have successfully navigated through the disruptive forces of globalization and commoditization. There are two fundamental realities marketers face in this brave new world: Ideas are now more valuable than process Move up the value chain or be cast aside Through all this creative destruction, in the form of our current economic reality, the dead wood is being cleared from the system, making way for more innovative players to take hold and prosper. Many once beloved and dominant brands have surrendered their leadership position to scrappy startups who offer more. Amazingly, the rules of the game change in real time even as we all play along. Improvisation, once shunned by corporate organizations, is now considered an essential strategic business skill. Yet, through all this disruption and confusion, it‘s an exciting time full of opportunity for those big thinkers and dreamers who view it as such. If you‘re a marketing executive charged with defining the perception of competitive advantage for your brands, the implications of this disruptive age are of significant importance to your future.


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Creating relevant and differentiated value for people is less and less derived from the attributes of product features and benefits, and more from the quality of the experience customers have through their association and engagement with your brand. Brands are not things they‘re emotional experiences. Creating these experiences, and the use value they offer, is the result of an integrated creative process of design. A focused fanaticism to create enormous value. Design, in all its disciplines (product, process, environment and communication) is a strategic business imperative. For the entire enterprise to receive its benefit in the marketplace, design is the differentiator not a decorative act. Design and the process of ―design thinking‖ has added billions of dollars worth of market capitalization to those enterprises that understand its significant power and higher purpose to engage and delight customers in ways never before possible. In every leading company, design has become the soul of enterprise strategy. You don‘t have to look very far to see brands that apply this principle with phenomenal results – Apple, Nike, Starbucks, Google, Patagonia, BMW, Herman Miller, Target, Gillette, Virgin – every one of these

enterprises arestrategy. absolute fanatics about design and its importance to their business Whatever the product or service enterprise, you‘ll find design fanatics at the very top of leading organizations – fanatics who value design as the driver of competitive advantage. Design leaders are not bound by the restrictions of the competitive plane (think cost and commoditization), when they are free to grow and expand by leveraging the love (think passion and devotion) customers have for their offerings. Bake your marketing into big dreams. The stakes are ever higher for marketers. Nothing is more destructive to success than clawing your way to the middle, to the common, to the good enough. It takes big, uncommon dreams to design beloved products, design beautiful environments and design rich customer experiences


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The biggest dreamers of all are designer s and design thinkers. It‘s their inherent nature to dream. In many ways, marketers ought to think more like designers and dream the seeds of a bigger, brighter future regardless of the naysayer and quantitative non-believers. Dreams require imagination. Market leaders always have big dreams. Design lights their way forward. The idea economy is especially kind to the dreamers who utilize the discipline of design as an inspiration force for manifesting much loved customer experiences into the real-life marketplace. The functionality or usefulness of a thing is not enough to create devotion to it. The current battle in the smart phone category and the demise of the original category leader proves the point. Nowadays everything ―works‖! Everything is good! It‘s far better to place resources on designing excitement, surprise, delight, passion and uniqueness. Think about, and create beauty. Forget product and service attributes, instead, design experiences people love and share. Bake your marketing into your big dream. Make your next product innovation an opportunity to design an experience that people can‘t live without. Dream big. Never let the metrics of short-term demands weaken the resolve of a big dream still in the ―goo‖ Creativity a process not an – event. is no more roomofincreation. the marketplace forisme-too anything dreamThere dramatically different! Compete. Win. Learn. Together. The Un-Conference: 360° of Brand Strategy for a Changing World Featuring John Sculley October 17-18, 2013 in Miami Beach, Florida A unique, competitive-learning workshop limited to 50 participants As in Your marketplace — some will win, some will lose, All will lear

Examples of Brand-Positioning Strategy

Your company brand is the lifeblood of the business: It is a statement of your company's personality and a declaration of company values. With the right positioning strategy, branding creates an indelible impression


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that allows consumers to engage with a company on a more personal, emotional level. What's more, strong branding elevates awareness of both the company and the products or services it offers. To create this degree of awareness, you can using one of a number of positioning strategies to which you can anchor your brand. Quality Positioning The quality of a given product is one of the most important components of a company brand, and can be combined with other positioning strategies rather easily. Since every business is trying to emphasize its commitment to quality, a good way to distinguish yourself from

competitors to narrow focus to one of expertise, branding theiscompany asyour a high-quality andarea trusted specialist.thereby Value or Price Positioning There are two ways to approach value or price positioning, both of which are crucially dependent on quality. One approach is to use a highend tack, which exploits the psychological belief that the more expensive something is, the more intrinsically valuable it must be. You can also cement your brand as the provider of high-quality, value-

priced products or services. A good example of this strategy is Southwest Airlines. In a tough economy, its policy of offering affordable flights as well as promising free checked luggage has allowed it to flourish while other airlines struggle. Related Reading: f Benefit Positioning Communicating the unique benefits of a product or service has long been a popular brand position. With this strategy, the goal is to highlight your company's most powerful attributes — attributes no competitor can claim and that are valuable to the consumer. Consider the popular and ever-bored Maytag repairman: Maytag built its brand on the benefits of owning a machine that almost never requires repair. Similarly, Colgate toothpaste uses a benefit strategy with an effective message: Brush with


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Colgate and prevent cavities and gingivitis, a benefit promise that appeals to consumers. Problem and Solution Positioning

Positioning a brand as the solution to a consumer's problem is also a powerful strategy. The idea is to demonstrate that your company has the power to relieve customers of whatever problem they may be facing, both quickly and efficiently. For example, prepackaged chopped vegetables solve the consumer's problem of time-consuming food preparation in a snap. Competitor-Based Positioning Business is nothing if not competitive. Therefore, with this positioning strategy, a company takes aim at one or several competitors to demonstrate its superiority among others offering the same type of product or service. Car insurance companies often employ this strategy to establish a powerful brand by comparing their rates or service to those of other companies. The message is that consumers should cancel their old policies and purchase their coverage from a different and better insurer. Celebrity-Driven Positioning Hiring celebrities as spokespeople or to endorse a company's product or service is a popular way to position a brand. The goal is to garner brand awareness and recognition by associating your company with a glamorous individual. While this is an expensive route to take, the consumer tends to trust celebrities implicitly because she's familiar with their faces. This familiarity inspires buyers to follow the celebrity's lead or to emulate him, making this strategy ideal for selling luxury goods or athletic apparel Implications of brand building

1. Brand building drastically reduce marketing investment-


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A strong brand needs lower and lower levels of incremental investment to sustain itself over time. A new, unknown player will have to spend tow or four times the market leader to achieve the same share of mind. Given the huge difference in business volumes, the pressure of the bottom line is much higher for an un-established player. 2. Brand building facilitates long range planning- Ask any business manager at Hindustan Liver (HLL), Nestle or even home grown organisation like Wipro, Hero Cycle, or TVS Group. In an average year his ability to target and budget primary sales would be infinitely simpler than for someone responsible for a relatively unestablished brand. The latter gentlemen would be targeting merely on desired volumes-almost always dictated by top management. Strong brand always account for more stable businesses. 3. Brand Building commands a premium- As long as there is a distinct value attach to your offering, the consumer will always be willing to pay more for it. That is the only reason why an unknown brand called Titan could command substantial premium over HMT. That is the same reason why a brand like BPL at a higher cost beat the stuffing out of companies like Akai in a T.V. wars last years. 4. Brand Building builds entry barrier- Human being as aconsumers species love status brand, which entrenched in the mind, is quo. very Therefore, difficult to adisplace. If for is nothing else, the sheer inertia will override any cooing and wooing noises that the new entrant would create. This consequently implies stability of business and therefore stability of revenue. 5. Brand Building increases cash flow efficiency- Today, an HLL distributor leaves signed cheque-books with the company to be filled in on material dispatch. This is for most brands with strong franchises even if they be in the agarbatties or Hawai chappal businesses. What more can a small business ask for? 6. Brand Building increases value of the business- Examples abound internationally and today even in India of businesses, which were sold for several time their book value. Phillip Morris bought Kraft from General Force in 1991 for US $13 billion. More than its book value. A little later at home, Coca-Cola paid US $60 M to aquire


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Thumps-up from Parles. Neither Buyer had any lacunae in manufacturing, finance or human resources. They merely bought business with very powerful brand equities and therefore paid more than the net worth of the businesses. Role of CRM in building brands

In today's competitive market environment, effective brand management becomes imperative in enhancing market share and to attain sustainable growth. To complete the stupendous task, the Indian companies are using CRM (Customer Relationship Management) as an effective tool. The companies have to retain their loyal customers and also have to attract brand switchers. In the long run, they have to convert the brand switchers into their own brand loyals. To meet this objective and to retain the loyal customers, relationship marketing plays the pivotal role. The effective use of CRM will ensure customer loyalty and convert them into lifelong consumers of the product. Today, most of the companies are using Enterprise Resource Planning (ERP) tools with two important modules like CRM and SCM (Supply Chain Management). The successful companies in India like HLL and Asian Paints have been reaping the fruits of CRM. This paper attempts to bring out the emerging trends and changing dimensions in using CRM as a catalyst for building successful brands in India. In the post-liberalization era, Indian business environment has become very competitive and dynamic. Businesses spend around six times more to acquire new customers than retaining existing customers. Therefore, the companies have to come out with strategies to enhance their customer care and thus keep their customers happy and make them loyal customers. Many of the successful companies have achieved that status by caring about their customers and having clear procedures and training to ensure this. The customer care begins with an understanding of customer need and formulating the marketing strategies to satisfy this need on a continuous basis.


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Brand Revitalization strategies

Rule 1: Refocus the organization Refocusing the organization begins with redefining the brand and business purpose and goals. The brand purpose should be aspirational. At McDonald's, where I held the post of global CMO, we defined the long-term ambition "to be our customer's favorite place and way to eat and drink." For the first three years, the primary focus was on becoming the "favorite place and way to eat." As Jim Cantalupo, McDonald's CEO, liked to say, we would "be bigger by being better." How would we accomplish that? Rule 2: Restore brand relevance The brand promise is an articulation of the relevant and differentiating experience that the brand will deliver to every customer, every time. Brand revitalization means defining where you want the brand to be and then deciding how to get there. Over the years, the essence of the McDonald's brand was the perception that it was an affordable, convenient brand for families with kids. There were those who said that equity could not and should not be changed. But McDonald's set out to change people's perceptions and go from appealing to the child in your heart to appealing to those with a youngadult spirit at heart. Rule 3: Reinvent the brand experience To revitalize a brand, we need to bring the redefined brand promise to life. This is what the five action P's are all about. The five action P's are

people, product, place, price and promotion. People come first. Building employee commitment to the new direction, employee confidence, and organizational and employee capabilities are critical factors that influence future success. And it's imperative to inspire those in the organization to believe that the new brand future will happen and that they can help. At McDonald's a


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new on-boarding communication was created called "Learnin' it. Livin' it. Lovin' it." Product is the next P. Products and services are the tangible evidence of the truth of the promise. When we redefine the promise, product and service renovation and innovation are imperative. A disciplined approach to brand extension can revitalize and strengthen a brand. McDonald's extended its product range to include products such as salads, yogurt parfaits and coffee. The Crest revitalizations included extensions beyond cavity prevention to include tartar control, whitening, breath freshening, dental floss, mouthwash, tooth whiteners and toothbrushes. The place is the face of the brand. Whether a store, a website, a retail display, a kiosk or wherever the "place" may be, the experience must be consistent with the intended brand direction. For example, McDonald's embarked on a very ambitious retail reimaging program. It also updated the brand website. Price comes next. The launch of the McDonald's Dollar Menu created an everyday-low-price list of items and enabled the brand to significantly reduce marketing emphasis on on-and-off discounting. Overemphasis on deals and discounts builds deal loyalty rather real loyalty. Promotion next. In September 2003, a new global was launched incomes 119 countries. The common signature theme campaign was "I'm lovin' it," supported by a distinctive set of five musical notes. The character of the communications was designed to reflect the new young-adult spirit of the brand. The following year, McDonald's adopted its first global packaging approach. It's the longest-running theme in the history of the brand. Whether advertising, special events, public relations, online, cause marketing, sponsorships, Olympics, World Cup or other forms of communication, the goal was to be consistent with the new McDonald's brand promise. Disconnected, monthly promotional messages and tactics destroy brands. Rule 4: Reinforce a results culture Measuring and managing performance is the eighth P. The McDonald's Plan to Win included three-year, measurable milestones.


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Creating a results culture means it is important to produce the right results the right way. A balanced brand-business scorecard should include measurable elements such as brand familiarity, brand reputation, employee pride, customer-perceived value, brand loyalty, sales, share and profit. Rule 5: Rebuild brand trust In this skeptical, demanding, uncertain world, trust is a must. As part of revitalizing a brand, rebuilding trust is critical. Investment in rebuilding trust is an important, challenging marketing imperative. There is demand for more openness, more social responsibility and more integrity. Over the years McDonald's invested in building trust -- Ronald McDonald House, environmental responsibility, commitment to employee diversity, local community activities. As the concern with healthful living has grown, so has McDonald's commitment to providing appropriate choices -- for example, salads, apple slices, yogurt parfait, water, juices and milk. Rule 6: Realize global alignment The power of alignment is awesome. During brand revitalization, we often talk about the need to get everyone on the same page. But we rarely, if ever, define the page we want everyone to be on. That's the purpose of the to Win, the outcomes. one-page document that summarizes theone-page eight P'sPlan and the desired Brand revitalization needs the courage and perspective of strong leaders. Jim Cantalupo was a decisive, committed leader providing clear direction and priorities. Charlie Bell, chief operating officer, was not only a great communicator, his positive attitude was infectious. They were the leaders who led the creation and launch of the far-reaching McDonald's Plan to Win. The vision and positive momentum initiated by Cantalupo and Bell continues to produce results even in a difficult economic environment Brand Personification

Brand Personification is an interesting research technique for understanding how a Brand is perceived.


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As detailed elsewhere in this weblog, Brands are multi-faceted… They‘re a collection of many separate perceptions about a company or product. These perceptions may include attributes like quality, reliability, value-for-money, trustworthiness, prestige, etc. Asking people to detail their perceptions of a Brand is fraught with risk. For starters, many people have difficulty putting into words ethereal concepts. And if you ask them to rate a Brand on a pre-determined set of attributes, you‘re pre-supposing – possibly incorrectly- that those attributes factor at all in their perceptions. You may also potentially miss other key perceptions you didn‘t think to include in your list. Brand Personification leverages the fact that people usually find it far easier to talk about something they have words and images for – such as people, or makes of cars – than ethereal concepts like Brands. It‘s a simple technique to employ. Essentially, you ask your constituencies: ―If (Company X) were a person, what type of person would they be…? Can you describe them to me…?‖ Responses to these question will often reveal – by proxy – the attributes of the Brand. For example, if Company X is described as a kindly 50 year old father figure, wearing a well-worn cardigan and slippers, we can deduce that Company X‘s Brand attributes will include maturity, comfort and as familiarity, perhaps unfashionable, etc. oldBut if Company is described a trendily-dressed, attractive 18 year female, then weX can infer that the Brand is fashionable, youth-oriented, etc. To use these inferences further, we can consider whether constituencies will be attracted to, or distanced by, their personification of the Brand. For example, banks would likely be delighted if certain segments of their customer base personified them as ―a kindly and mature father figure‖. However, a clothing label targeting cashed-up fashion-forward 18-year-olds would have a very different reaction to such a personification! A variation of the personnification technique is to ask consitutencies to describe a Brand as a make of car, or some other set of products with which they are familiar. The Brands they respond with can be just a revealing. For example, if a Brand is described as being ―like a BMW‖,


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we can infer the Brand has attributes which include performance, precision, prestige and quality. As a research technique, personification is useful, but it does have its limits. While it sheds light on Brand attributes now, it doesn‘t help us much in understanding what a Brand‘s attributes should be The Big Five Personality

The Big Five was originally propounded way back in 1961, but only came into broader use in the 1980s. Since then, it has become a hallmark of marketing and psychology. Everyone who ever took a ― personality test‖ at work has experienced an expression of the Big Five. The Big Five attributes are:

Openness to experience – (inventive/curious vs. consistent/cautious). Appreciation for art, emotion, adventure, unusual ideas, curiosity, and variety of experience. Openness reflects the degree of intellectual curiosity, creativity and a preference for novelty and variety. Some disagreement remains about how to interpret the openness factor, which is sometimes called ―intellect‖ rather than openness to experience.

Conscientiousness – (efficient/organized vs. easy-going/careless). A tendency to show self-discipline, act dutifully, and aim for achievement; planned rather than spontaneous behavior; organized, and dependable. Extraversion – (outgoing/energetic vs. solitary/reserved). Energy, positive emotions, surgency, assertiveness, sociability and the tendency to seek stimulation in the company of others, and talkativeness.

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Agreeableness (friendly/compassionate vs. cold/unkind). tendency to be – compassionate and cooperative rather than A suspicious and antagonistic towards others. Neuroticism – (sensitive/nervous vs. secure/confident). The tendency to experience unpleasant emotions easily, such as anger, anxiety, depression, or vulnerability.


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Neuroticism also refers to the degree of emotional stability and impulse control, and is sometimes referred by its low pole – ―emotional stability‖.

So much for the history lesson. Now for the 64-dollar question for modern Social brand communities: Do brand personalities all derive from The Big Five, as if brands were themselves people? Or, does each brand create its own unique universe, with its own unique set of core behavior elements driving the brand‘s personality? What researchers have found falls in the middle ground. Brands personality, in fact, is not derived directly from The Big Five, but neither does it stem from random, unique brand universes. Rather, there appears to be a separate set ofdon‘t universal that brand personalities. People reactmarkers to brands as delineate people, but do, if appears, react to brands in a consistent, measurable way, call it the Brand Five. Branding challenges and opportunities

Brands build their strength by providing customers consistently superior product and service experiences. A strong brand is a promise or bond with customers. In return for their loyalty, customers expect the firm to satisfy their needs better than any other competitors. Brands will always be important given their fundamental purpose – to identify and differentiate products and services. Good brand makes people‘s lives a little easier and better. People are loyal to brands that satisfy their expectations and deliver on its brand promise. The predictably good performance of a strong brand is something that consumer will always value. The challenges to brands 1) The shift from strategy to tactics: it- With theconsidered increasingapressure to generate ever-improving profitability, is often luxury for managers to develop long-term strategic plans. This is further exacerbated by short-term goal setting, which is frequently designed primarily for the convenience of the financial community.


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2) The shift from advertising to promotions: - As a consequence of the increasing pressure on brand manager to achieve short-term goals, there is a temptation to cut back on advertising support, since it is viewed as a long-term brand-building investment, in favour of

promotions which generate much quicker short-term results. 3) On-Line shopping: - The Internet is facilitating on-line shopping. On-line shopping is different from traditional mail order because: • Brands are available all the time and from all over the world; • Information and interactions are in real time; • Consumers can choose between brands which meet their criteria, as a result of selecting information which is in a much more convenient format for them, rather than the standard catalogue format. This poses threats to brands, some components of added value, agent or the retail outlet which originally added value by matching consumers with suppliers, may be eliminated. 4) Opportunities from technology: - Brand marketers are now able to take advantage of technology to again a competitive advantage through time. Technology is already reducing the lead time needed to respond rapidly to changing customers need and minimizing any delays in the supply chain. 5) More sophisticated buyers: - In business-to-business marketing, there is already an emphasis on bringing together individuals from different departments to evaluate suppliers‘ new brands. As inter departmental barriers break down even more, sellers are going to face increasingly sophisticated buyers who are served by better information system enabling them to pay off brand suppliers against each other. 6) The growth of corporate branding:- With media inhabiting individual brand advertising, many firms are putting more emphasis on corporate branding, unifying their portfolio of brands through clearer linkages with the corporation, which clarifies the those all the line brands adhere to. Through corporate identity program functional aspects of individual brands in the firm‘s portfolio can be augmented, enabling the consumer to select brands through assessment of the values of competing firms. Firms developed powerful corporate identity programmes by recognizing the need first to identify their internal


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corporate values, from which flow employee attitudes and specific types of staff behavior secondly, to devise integrated communication programmes for different external audiences Advantages of brand extension strategy

1.Consumer knowledge : the remaining strong brand used to “promote a new product”makes it less critical to create “awareness and ima gery”. The association with the main brand is already done and the “mai n task is communicating

the specific benefits of the new innovation” Taylor (2004, p1) 2.Consumer trust : the existing well-known-strong brands represent apromise – ofquality, useful features etc. - for the consumer. Thus, the extension will benefit from this fameand this good opinion about the brand to create “a compelling value proposition in a newsegment or markets” “=If the general opinion about the brand is favourable, the behaviour regard ing the extension should be the positive as well”. She adds that a successful brand extension c an enable to get the customer loyalty. A satisfied customer by an extension will be more wil ling to repurchase the same brand. For 8 example in the sport field, a customer will more li kely prefer a brand offering a complete equipment-shoes, outfit and accessories. 3.Lower cost : compared to launching a new brand, brand extensio n strategy is cheaper


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especially because the new product use the name of an already well-known brand. Taylor (2004, p2) said that “Studies show that cost per unit of trial is 36 % lower and that repurchase is also higher” with an extension Indeed, Smith & Park (1992, p296) confirm this idea when suggesting that regarding the advertising effectiveness, it seems for same market share, the advertisement budget for brand extension are smaller than for new brands. Aaker (2004, p194) gives some advantages more or le ss close to Taylor or C. Viot (2007) beliefs: 4.Enhancement of brand visibility : when a brand appears in another field it can “be a more effective and efficient brand-building approac h than spending money on advertising” In addition, he suggests that the relationship with lo yal customers will be strengthen because they will useas thewell brand another context” is expected that“in they will rather this and it brand to the competitors‟ one.

5.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 ex tension. 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 additio n, the customer sees the brand name more often and it can strengthen his idea that it is a g ood one. Thus, C. Viot states that the presence of the brand on a wider number of products should


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improve the popularity of the brand. The probabilit y of being in contact with the brand –both in the communication and in the supermarkets – is m ore important and then should improve the brand memorization. 6.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” according to Aaker (2004). Microsoft for instance has decided to operate in di fferent areas with the aim of limiting the

“ability of competitors to encroach on core busines s areas Brand Personality.

It‘s part of how consumers perceive the brand and how the brand differentiates itself from the competition. Accurately understanding brand personality is important to brand success. That‘s why we created a vocabulary for quantifying and describing brand personality. Recently we‘ve added a related visual language called Brand Toys. Being able to measure something as important — but as intangible — as brand personality enables brand owners to ask important questions that can strengthen competitive advantage: – What is the brand‘s personality? – Is it unique and can it become more unique? – Is the personality consistent worldwide? If not, how does it vary?

Understanding brand personality also helps select the most appropriate message and media, or more effective and suitable sponsorships or partnerships. Ultimately, understanding a brand personality enables the brand owner to deliver a consistent brand experience that connects with consumers and leaves a deeper and more sustainable impression.


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Brand personality characteristics often suggest a brand‘s latent appeal. When identified and cultivated they can effectively guide the creative tone of communications. For example, Mercedes is relatively ―assertive‖ and ―in control,‖ while BMW is more ―sexy‖ and ―desirable.‖ The brands have different and differentiating personalities. Mercedes confidently plays on its heritage with the fitting tagline, ―The Best or Nothing.‖ In contrast, ―The Ultimate Driving Machine‖ accurately captures the BMW personalit Brand Loyalty

Brand Loyalty is a scenario where the consumer fears purchasing and consuming product from another brand which he does not trust. It is measured through methods like word of mouth publicity, repetitive buying, price sensitivity, commitment, brand trust, customer satisfaction, etc. Brand loyalty is the extent to which a consumer constantly buys the same brand within a product category. The consumers remain loyal to a specific brand as long as it is available. They do not buy from other suppliers within the product category. Brand loyalty exists when the consumer feels that the brand consists of right product characteristics and quality at right price. Even if the other brands are available at cheaper price or superior quality, the brand loyal consumer will stick to his brand. Brand loyal consumers are the foundation of an organization. Greater loyalty levels lead to less marketing expenditure because the brand loyal customers promote the brand positively. Also, it acts as a means of launching and introducing more products that are targeted at same customers at less expenditure. It also restrains new competitors in the market. Brand loyalty is a key component of brand equity. Brand loyalty can be developed through various measures such as quick service, ensuring quality products, continuous improvement, wide distribution network, etc. When consumers are brand loyal they love ―you‖ for being ―you‖, and they will minutely consider any other alternative brand as a replacement. Examples of brand loyalty can be seen in US where true Apple customers have the brand's logo tattooed


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onto their bodies. Similarly in Finland, Nokia customers remained loyal to Nokia because they admired the design of the handsets or because of user- friendly menu system used by Nokia phones. Brand loyalty can be defined as relative possibility of customer shifting to another brand in case there is a change in product’s features, price or quality. As brand loyalty increases, customers will respond less to competitive moves and actions. Brand loyal customers remain committed to the brand, are willing to pay higher price for that brand, and will promote their brand always. A company having brand loyal customers will have greater sales, less marketing and advertising costs, and best pricing. This is because the brand loyal customers are less reluctant to shift to other brands, respond less to price changes and self- promote the brand as they perceive that their brand have unique value which is not provided by other competitive brands. Brand loyalty is always developed post purchase. To develop brand loyalty, an organization should know their niche market, target them, support their product, ensure easy access of their product, provide customer satisfaction, bring constant innovation in their product and offer schemes on their product so as to ensure that customers repeatedly purchase the product. Brand Awareness

Brand awareness is the probability that consumers are familiar about the life and availability of the product. It is the degree to which consumers precisely associate the brand with the specific product. It is measured as ratio of niche market that has former knowledge of brand. Brand awareness includes both brand recognition as well as brand recall. Brand recognition is the ability of consumer to recognize prior

knowledge of brand when they are asked questions about that brand or when they are shown that specific brand, i.e., the consumers can clearly differentiate the brand as having being earlier noticed or heard. While brand recall is the potential of customer to recover a brand from his memory when given the product class/category, needs satisfied by that category or buying scenario as a signal. In other words, it refers that


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consumers should correctly recover brand from the memory when given a clue or he can recall the specific brand when the product category is mentioned. It is generally easier to recognize a brand rather than recall it from the memory. Brand awareness is improved to the extent to which brand names are selected that is simple and easy to pronounce or spell; known and expressive; and unique as well as distinct. For instance - Coca Cola has come to be known as Coke. There are two types of brand awareness: 1. Aided awareness- This means that on mentioning the product category, the customers recognize your brand from the lists of Top of shown. mind awareness (Immediate brand recall)- This means 2. brands that on mentioning the product category, the first brand that customer recalls from his mind is your brand.

The relative importance of brand recall and recognition will rely on the degree to which consumers make product-related decisions with the brand present or not. For instance - In a store, brand recognition is more crucial as the brand will be physically present. In a scenario where brands are not physically present, brand recall is more significant (as in case of services and online brands). Brand Image

Brand image is the current view of the customers about a brand. It can be defined as a unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the consumers‘ perception about the product. It is the manner in which a specific brand is positioned in the market. Brand image conveys emotional value and not just a mental image. Brand image is nothing but an organization‘s character. It is an accumulation of contact and observation by people external to an organization. It should highlight an organization‘s mission and vision to all. The main elements of positive


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brand image are- unique logo reflecting organization‘s image, slogan describing organization‘s business in brief and brand identifier supporting the key values. Brand image is the overall impression in consumers‘ mind that is formed from all sources. Consumers develop various associations with the brand. Based on these associations, they form brand image. An image is formed about the brand on the basis of subjective perceptions of associations bundle that the consumers have about the brand. Volvo is associated with safety. Toyota is associated with reliability. The idea behind brand image is that the consumer is not purchasing just the product/service but also the image associated with that product/service. Brand images should be positive, unique and instant. Brand images can be strengthened using brand communications like advertising, packaging, word of mouth publicity, other promotional tools, etc. Brand image develops and conveys the product‘s character in a unique manner different from its competitor‘s image. The brand image cons ists of various associations in consumers‘ mind - attributes, benefits and attributes. Brand attributes are the functional and mental connections with the brand that the customers have. They can be specific or conceptual. Benefits are theFunctional rationale for the purchase decision. are three types of benefits: benefits - what do you do There better (than others ),emotional benefits - how do you make me feel better (than others), and rational benefits/support - why do I believe you(more than others). Brand attributes are consumers overall assessment of a brand. Brand image has not to be created, but is automatically formed. The brand image includes products' appeal, ease of use, functionality, fame, and overall value. Brand image is actually brand content. When the consumers purchase the product, they are also purchasing it‘s image. Brand image is the objective and mental feedback of the consumers when they purchase a product. Positive brand image is exceeding the customers expectations. Positive brand image enhances the goodwill and brand value of an organization. Brand Knowledge


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Brand Knowledge Basics Why is creating brand-knowledge important? The Coca-Cola brand was worth $68 billion in 2009, according to

Interbrand. This amounted to more than 50% of the value of The Coca-Cola company. Creating valuable brands is extremely important to the company‟s shareholders.

It is a knowledge economy. Brands are the currency of the knowledge economy. Brands are neither physical products nor actual services – brands are knowledge products. Successfully creating brands is a knowledge creation process. What is brand-knowledge? Where is brand-knowledge?

Kevin Keller defined brand knowledge as awareness of the brand name and belief about the brand image. Valuable beliefs are authentic beliefs – consistent and durable. In addition to belief, consumer experience is an important part of brand knowledge. Consumer experience includes emotions, sensations, and activity. Using the terminology of philosophy, beliefs are “explicit” knowledge – meaning they can be put in words, and experience is “tacit” knowledge – meaning it cannot be put in words.

Brand-knowledge – both explicit and tacit brand-knowledge – primarily is created by both the consumers and the marketer. Other players in brand-knowledge creation include researchers, advertising agencies, marketing consultants, distribution channel partners, and others. Brand- knowledge is created and held both by individual people and by groups. So, brand-knowledge includes two dimensions:

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beliefs (explicit) - experience (tacit) dimension individual – group dimension


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How to create brand-knowledge successfully?

Creating brand-knowledge is a process of transforming beliefs to experiences and experiences to beliefs. In addition, creating brand- knowledge requires that marketers exchange information with consumers and that brand-knowledge is transferred between individuals and groups within the organization. Activating and guiding the brand-knowledge creation process requires five factors. Context

Context is the culture of the organization. It describes what is important to the brand-knowledge creating organization. This factor represents the purpose of the organization in creating brand-knowledge. An example of a broad context is “build brand equity”, and an example of a more specific context is adidas‟ corporate mission of “help athletes achieve peak performance” (adidas, 2010).

Context must be shared by all the individuals and groups across the Shared context a reason andbrand-creation a motivation toprocess. interact and advance theprovides brand-knowledge creation process. Vision

Vision defines the character of the brand-knowledge that the organization aims to create. Context is the energy that drives the brand-knowledge creation process, vision is the compass that keeps each brand-knowledge creation stage aligned. Vision applies to both the beliefs and the experiences of brandknowledge. To be an effective guide across both types of the brand-knowledge, vision includes both a literal element (for belief) and a metaphorical element (for experience). Examples of effective brand-knowledge visions that include literal and


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metaphorical elements are “human healthcare” (Eisai) and “the third place” (Starbucks). Activists

Activists are the people who direct the brand-knowledge creation process. Activists interpret the overall context and vision in ways that are relevant for each group in the process in order to create vital links across groups. Activists maintain a focus on the brandknowledge assets in order to control the scope of the brandknowledge creation process. Activists have a deep knowledge of their own group‟s knowledge

assets and capabilities. In addition, activists energetically and skillfully communicate with other groups in the process. Brand managers are important activists in brand-knowledge creation. Assets

Assets are the brand-knowledge inputs and outputs of the brandknowledge creation process. Assets include both beliefs (explicit) and experiences (tacit). The output from one stage of the process becomes the input for to theensure next stage of the process. Activists manage these assets that they are appropriate in scope for the following stage. It is obvious that assets include all the specifications that go into planning for a brand, as well as the creative output such as designs and advertising. However, assets also include the experiential brand-knowledge of all participants, such as their loyalty or engagement with the brand. Media

Media is the location where the brand-knowledge is created or the path by which the brand-knowledge is transferred. It also includes the social rules that govern how the media is used.


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Media includes places where participants meet as well as the social rules that govern the meetings. Media also includes the way knowledge is transferred, such as through an intranet Brands vs Products

Companies Make Products and Consumers Make Brands A product is made by a company and can be purchased by a consumer in exchange for money while brands are built through consumer perceptions, expectations, and experiences with all products or services under a brand umbrella. For example, Toyota‘s product is cars. Its umbrella brand is Toyota and each product has its own more specific

brand nameone to distinguish the various Toyota-manufactured product lines from another. Without a product, there is no need for a brand. Products Can Be Copied and Replaced but Brands Are Unique A product can be copied by competitors at anytime. When Amazon launched the Kindle e-reader device, it didn‘t take long for competitors to come out with their own branded versions of an e-reader product. However, the brand associated with each e-reader device offers unique value based on the perceptions, expectations, and emotions that

consumers develop for those brands through previous experiences with them. Similarly, a product can be replaced with a competitor‘s product if consumers believe the two products offer the same features and benefits. Products with low emotional involvement are typically easily replaced. For example, do you really care what brand of milk you buy or do you primarily just care that the milk you buy is fresh and includes the fat percentage that you want? Products Can Become Obsolete but Brands Can Be Timeless Remember VHS players? With the introduction of DVD players and more recently DVR devices and streaming video services, VHS players have become obsolete. The same thing happened to 8-track tapes, vinyl records, cassettes, and CDs. Today, most people buy their music in


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digital format and listen to it on their iPods. The Elvis Presley brand is timeless, but no one buys Elvis music on cassettes anymore. Products Are Instantly Meaningful but Brands Become Meaningful over Time. When you launch a new product, it‘s easy to make that product instantly meaningful and useful to consumers because it serves a specific function for them. However, a brand is meaningless until consumers have a chance to experience it, build trust with it, and believe in it. That‘s why the 3 steps to brand building include consistency, persistence, and restraint. It takes time and effort to convince consumers to believe in your brand.

Consider Google as an example. When Google first hit the Internet scene it offered a simple product — a search engine. That product was instantly meaningful to consumers because it helped them find information online quickly. However, the Google brand didn‘t become meaningful to consumers until people had a chance to use the Google search engine product and see for themselves that it really was a better search engine. Through those experiences, consumers began to trust that the Google brand could deliver faster and better information online. Today, when Google launches a new product (like Google+ recently), people are quick to try those products because they trust the Google brand. Five strategies for a successful global brand

A new generation of global brands is emerging. Globalisation used to mean identikit high streets, May Day protests and a Starbucks on every corner. But with an international business suggesting strength and stability in the fragile economic markets, global brands are no longer being seen as dominating bogeymen. In April, Forrester Research‘s Steve Noble called for companies to ―create an adaptive global organisation‖ to deal with post -recession pressures. It seems that being global is back on the boardroom agenda.


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Coca-Cola seems to be taking note, scrapping its local UK marketing director position in May, in favour of a more regional strategy. Kraft has been quick to follow suit. While it will leave a UK marketer position, it has also said it will lead its strategy more centrally from Europe. For brands seeking to join the new set of global brands, there are five strategies that companies need to take into account. These involve creating a strong and consistent brand culture, borderless marketing, internal hubs, a new ―glocal‖ structure and co-creating with consumers. Marketing Week sets out these five strategies that can help companies embrace the new business of globalisation. 1 Build a strong, consistent brand culture In the past, a rigid corporate structure was an important element of the global brand. Local markets were in charge of developing their own brand strategies. However, in recent years building a consistent and strong brand culture that remains familiar to consumers wherever it is in the world has become a priority. Tony Effik, chief strategy officer at Publicis Modem, explains: ―A brand needs a single view of the world, a single philosophy.‖ The rise of digital channels has shifted the brand emphasis from structure to culture, believes Neil Taylor, director language consultancy The Writer. He notes: ―So cialcreative media and viral at marketing stop brands doing what they used to do, which was to manage brands in a command-and-control sort of way. ―It becomes more important that your brand reflects your culture, rather than your guidelines. The brands that have done it well are those that have a strong culture of their own,‖ says Taylor. ASmallWorld is an example of a business that has created a brand which is consistent around the globe (see case study below). Language is an important element in ensuring a consistent brand culture, he adds, citing Innocent Drinks as a good example of a company that has successfully retained a distinctive tone of voice across markets. ―You read Innocent Drinks in French and it feels just as playful and cute as Innocent in English. It‘s the same personality.‖


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Now anyone can see the company‘s Facebook page, or videos on YouTube… It‘s forcing brands to question: how do we get a single content story that works across all of those markets Tony Effik, Publicis Modem Compromising your brand culture in a world which is becoming increasingly borderless can have damaging consequences – a fact that Google discovered when it launched a self-censored search engine in China in 2006. Its previous search engine in China was subject to government blocks because of the country‘s new media policy restricting internet access. Google‘s mission is to make the world‘s information universally accessible and useful. But how does a brand with values like Google set up something in China that sticks to those

values? Taylor says: ―If you‘re operating in China, the Chinese government doesn‘t want you to make information universally accessible and useful and it [Google] has naturally ended up compromising.‖ The consumer backlash against Google in other markets was significant. ―Not surprisingly, customers around the world went: ‗well hold on, we thought you were about this, how can you possibly run that business over there?‘ News will travel and start to damage your brand even in your home market.‖ Since late 2010, Google has resorted to redirecting search requests fromMarch mainland China to Hong Kong, which doesn‘t have the same restrictions. He suggests that if your culture really is about making information universally accessible then maybe this is something Google shouldn‘t compromise on. 2 Be borderless in your marketing With the abundance of digital platforms, it is no longer possible for brands to follow different brand strategies in different countries. Companies are being forced to adopt a more unified marketing approach. Marketers need to rethink the term ―glocal‖, explains Publicis Modem‘s Tony Effik. Theodore Levitt‘s ―think global, act local‖ slogan doesn‘t work in a digital age in the same way, he argues. ―The way we do global campaigns had to change be cause digital doesn‘t respect borders,


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particularly now with social media. What we‘re finding is that as content moves across borders, brand stories are crossing over internationally.‖ Open territory: Coke‘s Open Happiness campaign has a relevance in every country Brands that don‘t adopt a borderless approach risk becoming marginalised, warns Stephen Woodford, chairman and CEO at DDB UK. ―People are much less aware of international boundaries than before. Digital channels are borderless media and therefore brands that operate across such media feel more pervasive and part of the world. If you look at brands like Nike, Adidas, Coca- Cola and McDonald‘s, they are everywhere and have local strength and identity, but also consistency across markets.‖ Having a single identity is important to the success of Santander on a global level, explains Keith Moor, brand director at Santander (see Viewpoint above). The bank‘s UK acquisitions – Abbey and Bradford & Bingley – have been rebranded so that the Santander brand has a presence across Britain as well as its domestic Spanish market. ―We wanted the Santander brand to be very well known, to have a single identity globally, so that we can capitalise on other markets and global sponsorships likefootball F1,‖ explains The recent Nike advert,Moor. timed to coincide with the World Cup, is a good example of borderless marketing, thinks DDB‘s Woodford. The ad has taken footballers from around the world and weaved them into one story. ―It‘s just great stars from around the wor ld, all united by one thing. It‘s a great example of not a multinational brand, but a transnational brand. It doesn‘t have any boundaries; it‘s truly global.‖ This process is especially difficult for FMCG brands notes Publicis Modem‘s Effik. In the past, a brand could have one target audience in one country and a different positioning in another. ―Now anyone can see the company‘s Facebook page or its Twitter stream or videos on YouTube, as things start to pass from border to border. It‘s forcing brands to question: how do we see our market? How do we get a single content story that works across all of those markets?‖


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If we talk about a new way of operating or a new global brand, it will be a brand that is asking for opinion, that listens to consumers and asks for co-creation Anna Valle, Durex With this increased interconnectivity, markets that were previously seen as second or third tier must now be treated in the same way as top tier ones, he explains. ―You had a global brand operating in Uganda and you never really paid much attention to them because they didn‘t really matter in the grand scheme of things. ―Somewhere like Uganda really does matter now because a bad interpretation of the brand or a human rights issue affects what you do in London, New York and Tokyo. Now every market is a tier one because tier three markets can come around and bite you on the bottom.‖ The marketing focus for global brands has moved away from division to cohesion, thinks Richard Huntington, Saatchi & Saatchi director of strategy. Instead of looking for what divides consumers up, brands should be looking at what unites them. He says: ―Marketing traditionally has been focused on differences and segmentations between markets and consumers. If brands start caring about the things that real people care about then those differences seem to disappear.‖ an internal hub 3 Build yourself The need for a unified marketing team is more important than ever. Involving marketers from across the global brand in the overall marketing strategy will engender overall cohesion, says Kip Knight, president of Knight Vision Marketing, who has set up marketing academies for global heavyweights such as PepsiCo and eBay while working at those companies. He says: ―It doesn‘t work to simply hand somebody a str ategy and say, ‗well good luck with that‘. They have to feel like they‘ve had a chance to vet it, to debate it, ideally in person, with others that are equally responsible for the brand. Ultimately, they‘ve got to feel like they own it. It‘s not my strategy; it‘s our strategy.‖


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By taking this approach, marketers are much more likely to focus on the same goals for the brand, as opposed to feeling like they‘ve got to go and create their own version of this brand in the market, he adds. What Is Standardization And Customization In Marketing

Standardization and customization are polar opposites of each other. standardization means "one size fits all." It refers to the tailoring of a marketing program or campaign in such a way that there are enough elements to appease everybody. The target audience is vast. Standardization helps keep the costs low of reaching out to many people. It is employed typically in situations where the product in question is for mass consumption. These products are typically low volume products that makes it economically unfeasible for customization. Customization on the other hand refers to the tailoring of the campaign according to the needs of an individual or groups of individuals. These are high margin products where the volumes are low and the buyers are few. E.g. If an expensive luxury yacht was on sale then the company selling it could go to the extent of tailoring the marketing efforts according to the needs of specific buyers nternational brand management is dealing with different type of problems. If your company is working in different countries, you have to catch up the customer needs and learn about market characteristics of each country. If you want to be succesful in different countries either you stardardize your product or adapt it for that market. Let‘s have a look what can be the reasons of product standardization and customization. Reasons of Product Standardization

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Economies of Scale Common Consumer Behaviour Consumer Mobility


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Home Country Image

Reasons of Product Customization 

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Climate Biological Differences National Consumer Habits Government Regulations

As we can see there can be number of reasons forces us to choose one of the strategies.Now we will look for the example of these strategies. One of the succesful example of standardization strategy is Coca-Cola. Coca-Cola is making business nearly all over the world and they never think about changing their product‘s formula. They have a good advertisement policy and they did it well for each country still they did not change the product.Anywhere in the world the coca-cola has same taste. For customization the best example is Barbie which is icon of America. In product history in 50 years they change Barbie for good. Barbie toys started to produced not only American but also Indian, Jamaican, Japanese, Korean and Italian. The Advantages of Global Branding and Advertising

Consistency A primary reason companies position brands in the same way around the world is consistency. The logic is that if brands and products are perceived the same around the world, that position is stronger compared to brands whose perceptions of value vary in different countries. As people travel to different countries, they should hear the same messages they hear about the brand in their home markets. Lower Costs Global advertising is typically a lower cost approach relative to customizing brands for each country. This is especially important to small businesses, which typically don't have huge advertising budgets.


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Since you don't have to constantly redesign and redevelop your brand, you benefit from sameness in strategy and messaging. You do have to adapt the language to fit each country, but the message strategies and concepts can remain constant. Often, the development of ad messages is as expensive, or more so, than the costs of placing ads. Related Reading: What Is Brand-Based Advertising? Synergy Global branding allows for synergy that is not possible through individualized approaches in each country. In social media, for instance, global consumers might discuss your products on Facebook and Twitter. With a consistent brand, this synergy of marketplace communication

helps your products become more viral thanks to word mouth.wouldn't With competing perceptions of your brand and products, thisof synergy exist as customers couldn't as easily discuss your products across the globe. You also have customers that travel and look for global brands in countries they visit. Global Teams Global brands make it easier to set up virtual work teams where advertising employees in each country work together using software

tools and forums. This enables sharing of ideas and a wider perspective on what would work and what wouldn't work in positioning the brand on a global basis. In more fragmented, country-by-country branding, this collaboration would produce few fruits How to Build a Brand Internationally: What You Need to Expand

When businesses try to expand their brand globally, those goals don't change. But there are several steps you should take to make sure that your products or services will have a market overseas, that you can maintain quality in delivering and/or distributing your goods or services, and that your business or product branding meets cultural expectations -and doesn't insult anyone -- in different parts of the world. "The secret is doing your homework," Williams says. "Like any long distance relationship, it's got to be managed and needs more work than


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something you can see and physically touch, but it's not impossible." The following steps may help you in building an international brand:

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Make sure you have a market. "Proven success with your current target audience doesn't automatically mean that your new target will connect in the same way with your products or services," Williams says. "Ask your new market the questions you used to build your initial business plan." First and most important, he says, you'll want to determine if a market exists for your product. If so, make sure the want or need isn't already being well met by someone else. If there are existing competitors, what (in the

perspective yourispotential makes you remarkably different? Ifof there a market customers) and there are no competitors, make sure you find out why -- are there laws against distributing your products or can consumers buy them through other means? Make sure you can deliver. Make sure you can get your product to, or manufactured within, the new market. "Import and manufacturing laws vary from country to country," Williams says. "Ensure you can make your products reliably and consistently available to your new target markets." Investigate the local laws. You need to make sure your products meet the local standards for construction of components, use of chemicals, disposal of goods, proper labeling of products, etc. Re-examine your business and/or product names. In choosing a name for your business or product, you need to be culturally sensitive if you intend to sell in foreign markets. Make sure product names make sense to customers in your new markets, both in English and in the local translation. Williams, who has done international branding work with Starbucks, recalls how a holiday favorite in the U.S., the Gingerbread Latte, didn't sell well in Germany even though gingerbread was a favorite holiday cookie in that country. Sales of the drink increased dramatically when Starbucks began using the German word for gingerbread and rebranded the drink, the Lebkuchen Latte. If you are considering


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translating names, don't rely on computer translation. "You don't want what you think is an effective name to mean something opposite or offend potential customers," Williams says. "Work with someone locally who can help make sure you communicate what you intend." Give your logo another look. Similarly, review your logo to make sure that you don't use any wording or symbols that would offend in a foreign market. "Ensure that any logos or symbols you use make sense and don't offend," Williams says. "Do an international search to make sure your logo isn't similar to that of another international company." For example, if you are selling products in some Middle Eastern markets, a logo featuring the face of a woman might not be appropriate. The best way to understand these cultural sensitivities is to consult a branding or design firm -either a local one or an international firm that can research cultural sensitivities. Understand packaging requirements. If you're selling a product, you need to consider the laws and customs and packaging requirements in your new markets before deciding on packaging for your products. Your packaging may use a clear plastic shell that hangs rod,can butgo your may package their product in from a boxathat on competition a shelf, Williams says. This may put you at a disadvantage. "If you're selling a packaged product around the world there are incredible hurdles," Roth adds. Shipping food across borders may require you to provide more nutritional information on packaging, in more languages, and there may be laws prohibiting the use of certain products in some markets -- even New York City has a ban on trans fatty acids, for example. Learn the local standards and ensure your packaging includes any necessary regulatory information and meets transportation standards. Register trademarks and domain names. Follow the process in your new market to ensure you preserve patent and trademarks. Thanks to the NAFTA Treaty your marks should already be protected in Mexico and Canada, Williams says. If you're doing


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business in the European Union filing for a Community Trade Mark (CTM) will protect you. Another consideration is making sure the Internet domain name for your company and product are available. You still want to register a dot-com, which is the most popular domain worldwide for businesses. But you may also consider registering domains using specific country codes -- .nl for the Netherlands or .br for Brazil -- if you are targeting only one or two local markets and plan on providing up-to-date translations of your websites into the local languages. In taking these steps to building a brand internationally, it almost always helps to find local resources to help you understand and enter new foreign markets. You in might consider entering business with atolocal distributor or retailer this new market. "It is into nearly impossible understand local culture simply by visiting a country," Williams says. "Find local customers, local translators. Just because you took two years of French in high school doesn't make you qualified to understand the French market nor do French translations. Just as consumers' needs are different in Rhode Island from those in Florida and California, so are the needs of consumers in Paris different from those in Marseille." How To Revitalize Your Brand

Revitalizing your brand is not often easy and means assessing where you came from, where you are now, and where you want to go from here. It can often feel like you are starting your branding process over from the beginning, and though it will be a lot faster this time around (there is a lot you already know), you still want to ask yourself the hard questions and begin...well at the beginning. They say it is a very good place to start. 1. What are the core values of your business/organization? What are some key words, short phrases, and descriptions that best depict what you do or want to be doing? What do you want your brand to "feel" like? Your brand has a personality and so needs to be thought about like you would a person. It will have a distinct way it talks, sense of humor,


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things it cares about, positions it agrees or disagrees with, etc. If you are stuck here, sometimes doing a visual exercise like creating a mood or vision board is helpful. 2. What is the purpose of your work? Has this changed over time? What was it when you started and what is it now? What makes you unique and different from your competitors? What role do you provide in your partnerships with others? (ie. key stakeholders/constiuents/clients/fans, etc. depending on what type of business we are talking about) This information is what becomes your new mission statement and/or company description. 3. What are your goals? What do you want to accomplish over the next 1, 3, 5, 10 years? Think big and keep referring back to your core values, being reminded of what you value and will keep you interested in your work are they same things that will be engaging to other people. Make sure to also think about tangible and actionable goals, ie. things you can quantify and "check-off" when complete. Asking yourself these questions are the beginings of a new strategic plan. 4. Who are your key stakeholders/constiuents/clients/fans, etc.? What are their ―demographics‖? (likes, dislikes, places they go/events they attend, other organizations they are a part of, etc... be specificchanged on gender, age, social/political/cultural Have people since you began, if so, how? Areactivities) the people youthese market to now the same people you want 1-5 years from now? These questions will help you identify your target market(s) and in turn how you want to communicate your brand moving forward. 5. Does your brand identity still "look" and "feel" right? Is the way you talk about yourself (written and visually) still inline with your core values and goals? Are your marketing materials consistent? Do they share the same basic theme and information, and are these clear to your readers/viewers? Either way, if you are considering a brand revitalization, something probably feels off to you, so taking a look at the fonts, colors, imagery, and textures you are using is probably a good idea. This will help you create a new visual language and identity. For a more in-depth exercise than what is listed below see 4 Quick Tips For


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Visual Consistency: A Quick and Dirty Guide to Unifying Your Marketing Materials.

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Fonts: If your company/organization were a font, which one

would it be? Visit Myfonts.com or Google Webfonts and type in your core values/key words and see what comes up. Color Palette: In general, what kind of colors are you drawn to and would best portray your core values? Try playing around with Colourlovers. Textures: Do you prefer smooth and clean vs. tactile and layered? See SubtlePatterns. Imagery: What kind of imagery are you drawn to? What imagery

do you think best portrays your core values? Visit istockphoto. Once you have finished going through the steps above, I think you will find you have already revitalized your brand. It is not one simple action that changes things, it is a transformation in how you are thinking about your company/organization and then choosing words and a new visual language that "feels" in alignment. Try to stay focused on your core values before you focus on who you are trying to reach. If you stay grounded in what you value, your purpose, and goals, you will attract the right people to your community. Then it is just a matter of choosing the right marketing channels for sharing and broadcasting. (print, web, social, email, etc brand hierarchy

A brand hierarchy is a means of summarizing the branding strategy by displaying the number and nature of common and distinctive brand elements across the firm‘s products, revealing the explicit ordering of brand elements. By capturing the potential branding relationships among the different products sold by the firm, a brand hierarchy is a useful means of graphically portraying a firm‘s branding strategy. Specifically, a brand hierarchy is based on the realization that a product can be branded in different ways depending on how many new and existing brand elements are used and how they are combined for any one


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product. Because certain brand elements are used to make more than one brand, a hierarchy can be constructed to represent how (if at all) products are nested with other products because of their common brand elements. Some brand elements may be shared by many products (e.g., Ford); other brand elements may be unique to certain products (e.g., Fseries trucks). As with any hierarchy, moving from the top level to the bottom level typically involves more entries at each succeeding level — in this case, more brands. There are different ways to define brand elements and levels of the hierarchy. Perhaps the simplest representation of possible brand elements and thus potential levels of a brand hierarchy — from top to bottom — might be as follows: 1. 2. 3. 4.

Corporate (or company) brand (e.g., General Motors) Range brand (e.g., Chevrolet) Individual brand (e.g.. Lumina) Modifier (designating item or model) (e.g., Ultra) The highest level of the brand hierarchy technically always involves one brand — the corporate or company brand. For legal reasons, the company or corporate brand is almost always present somewhere on the product or package, although it may be the case that the name of a company subsidiary may appear instead of the corporate name. example, Fortune Brands owns many different companies, suchFor as Titleist, Footjoy, Jim Beam, Master Lock, and Moen, but does not use its corporate name in any of its lines of business. For some firms, the corporate brand is virtually the only brand used (e.g., as with General Electric and Hewlett-Packard). Some other firms combine their corporate brand name with family brands or individual brands (e.g., conglomerate Siemens varied electrical engineering and electronics business units are branded with descriptive modifiers, such as Siemens Transportation Systems). Finally, in some other cases, the company name is virtually invisible and, although technically part of the hierarchy, receives virtually no attention in the marketing program (e.g., Black & Decker does not use its name on its high-end DeWalt professional power tools, and Hewlett-Packard created a wholly owned subsidiary for its low-priced Apollo ink-jet printers).


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Protecting Brand Equity

The marketing mix should focus on building and protecting brand equity. For example, if the brand is positioned as a premium product, the product quality should be consistent with what consumers expect of the brand, low sale prices should not be used compete, the distribution channels should be consistent with what is expected of a premium brand, and the promotional campaign should build consistent associations. Finally, potentially dilutive extensions that are inconsistent with the consumer's perception of the brand should be avoided. Extensions also should be avoided if the core brand is not yet sufficiently strong. Managing Multiple Brands

Different companies have opted for different brand strategies for multiple products. These strategies are: Single brand identity - a separate brand for each product. For example, in laundry detergents Procter & Gamble offers uniquely positioned brands such as Tide, Cheer, Bold, etc. Umbrella - all products under the same brand. For example, Sony offers many different product categories under its brand. Multi-brand categories - Different brands for different product categories. Campbell Soup Company uses Campbell's for soups, Pepperidge Farm for baked goods, and V8 for juices. Family of names - Different brands having a common name stem. Nestle uses Nescafe, Nesquik, and Nestea for beverages. Brand equity is an important factor in multi-product branding strategies.

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Building and Managing Brand Equity

In his 1989 paper, Managing Brand Equity, Peter H. Farquhar outlined the following three stages that are required in order to build a strong brand:


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1.

Introduction - introduce a quality product with the strategy of using the brand as a platform from which to launch future products. A positive evaluation by the consumer is important. 2. Elaboration - make the brand easy to remember and develop repeat

usage. There should be accessible brand attitude, that is, the consumer should easily remember his or her positive evaluation of the brand. 3. Fortification - the brand should carry a consistent image over time to reinforce its place in the consumer's mind and develop a special relationship with the consumer. Brand extensions can further fortify the brand, but only with related products having a perceived fit in the mind of the consumer. What is Brand Equity?

Brand equity is an intangible asset that depends on associations made by the consumer. There are at least three perspectives from which to view brand equity: Financial - One way to measure brand equity is to determine the price premium that a brand commands over a generic product. For example, if consumers are willing to pay $100 more for a branded television over the same unbranded television, this premium provides important information about the value of the brand. However, expenses such as promotional costs must be taken into account when using this method to measure brand equity. Brand extensions - A successful brand can be used as a platform to launch related products. The benefits of brand extensions are the leveraging of existing brand awareness thus reducing advertising expenditures, and a lower risk from the perspective of the consumer. Furthermore, appropriate brand extensions can enhance the core brand.

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However, the value of brand extensions is more difficult to quantify than are direct financial measures of brand equity. Consumer-based - A strong brand increases the consumer's attitude strength toward the product associated with the brand. Attitude strength is built by experience with a product. This importance of actual experience by the customer implies that trial samples are more effective

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than advertising in the early stages of building a strong brand. The consumer's awareness and associations lead to perceived quality, inferred attributes, and eventually, brand loyalty. Strong brand equity provides the following benefits:

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Facilitates a more predictable income stream. Increases cash flow by increasing market share, reducing promotional costs, and allowing premium pricing. Brand equity is an asset that can be sold or leased.

However, brand equity is not always positive in value. Some brands acquire a bad reputation that results in negative brand equity. Negative brand equity can be measured by surveys in which consumers indicate that a discount is needed to purchase the brand over a generic product.

Sources of Brand Identity

1. SYMBOLS- Symbols help customers memorize

\

organization‟s products and services. They help us

correlate positive thatthose bringproducts us closerand andservices. make it convenient for us attributes to purchase Symbols emphasize our brand expectations and shape corporate images. Symbols become a key component of brand equity and help in differentiating the brand characteristics. Symbols are easier to memorize than the brand names as they are visual images. These can include logos, people, geometric shapes, cartoon images, anything. For instance, Marlboro has its famous cowboy, Pillsbury has its Poppin‟ Fresh doughboy, Duracell has its

bunny rabbit, Mc Donald has Ronald, Fed Ex has an arrow, and Nike‟s swoosh. All these symbols help us remember

the brands associated with them. Brand symbols are strong means to attract attention and


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enhance brand personalities by making customers like them. It is feasible to learn the relationship between symbol and brand if the symbol is reflective/representative of the brand. For instance, the symbol of LG symbolize the world, future, youth, humanity, and technology. Also, it represents LG‟s efforts to keep close relationships with their

customers. 2. LOGOS- A logo is a unique graphic or symbol that represents a company, product, service, or other entity. It represents an organization very well and make the customers well-acquainted with the company. It is due to logo customers form an image for the product/service mind.that Adidas‟s “Three Stripes” is a famous brand identifiedin by it‟s corporate logo. Features of a good logo are :

a. It should be simple. b. It should be distinguished/unique. It should differentiate itself. c. It should be functional so that it can be used widely. d. It should be effective, i.e., it must have an impact on the intended audience. e. It should be memorable. f. It should be easily identifiable in full colours, limited colour palettes, or in black and white. g. It should be a perfect reflection/representation of the organization. h. It should be easy to correlate byinthe and should develop customers trust thecustomers organization. i. It should not loose it‟s integrity when transferred on fabric or any other material. j. It should portray compan y‟s values, mission and objectives.


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The elements of a logo are:

11. Logotype - It can be a simple or expanded name. Examples of logotypes including only the name are Kellogg‟s, Hyatt, etc. 12. Icon - It is a name or visual symbol that communicates a market position. For example-LIC ‟hands‟, UTI ‟kalash‟. 13. Slogan - It is best way of conveying company‟s message to the consumers. For instance- Nike‟s slogan “Just Do It”. 3. TRADEMARKS- Trademark is a unique symbol, design, or

any form of identification people recognize a that brand. A renowned brandthat hashelps a popular trademark and helps consumers purchase quality products. The goodwill of the dealer/maker of the product also enhances by use of trademark. Trademark totally indicates the commercial source of product/service. Trademark contribute in brand equity formation of a brand. Trademark name should be original. A trademark is chosen by the following symbols: ™ (denotes unregistered trademark, that is, a mark used to

promote or brand goods); SM (denotes unregistered service mark) ® (denotes registered trademark). Registration of trademark is essential in some countries to give exclusive rights to it. Without adequate trademark protection, brand names can become legally declared generic. Generic names are never protectable as was the case with Vaseline, escalator and thermos.

Some guidelines for trademark protection are as follows:

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Go for formal trademark registration.


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i. ii. iii. iv.

Never use trademark as a noun or verb. Always use it as an adjective. Use correct trademark spelling. Challenge each misuse of trademark, specifically by competitors in market. Capitalize first letter of trademark. If a trademark appears in point, ensure that it stands out from surrounding text

Brand Identity vs Brand Image

Brand Identity

Brand Image

1

Brand identity develops from the source or the company.

Brand image is perceived by the receiver or the consumer.

2

Brand message is tied together in terms of brand identity.

Brand message is untied by the consumer in the form of brand image.

3

The general meaning of

The general meaning of brand

brand identity is “who you really are?”

image is “How market perceives you?”

It‟s nature is that it is

It‟s nature is that it is

substance oriented or

appearance oriented or

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strategic.

tactical.

5

Brand identity symbolizes firms‟ reality.

Brand image symbolizes perception of consumers

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Brand identity represents “your desire”.

Brand image represents “others view”

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It is enduring.

It is superficial.

8

Identity is looking ahead.

Image is looking back.

9

Identity is active.

Image is passive.

10 It signifies “where you want to be”.

It signifies “what you have got”.

11 It is total promise that a

It is total consumers‟

company makes to consumers.

perception about the brand.

Brand Promise - Our brand is a promise of what we deliver

Brand evokes the responses. There are many people who love


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their Apple iPod or love their car etc. There are certain feelings that come to your mind when you think about your favorite brands. People expect that these brands should demonstrate brand promises in every time whenever are, can encountered. Inconsistencies the performance of they services lead to damage in further relations. This can cause a customer to select some other brand. Brand promise is what you say to the customer and what is to be delivered. If you are not able to meet the expectations of

the customer, your business will either flounder or die. If you are not able to deliver the brand promise you will not be able to meet the expectations that have been created in the customers mind. There are three major mistakes that the business leaders make while executing and developing the brand promise:

The first mistake is when you refuse to recognize the customer expectations that are created in customers mind before it comes in contact with that particular brand. The customers are very easily able to realize your brand promise by the business you are dealing with. For example, if you have a gourmet restaurant then the customers will have a image in their mind that it will different from the local restaurant. This is one of the major reason, why one should work for every smallest detail. For example, the image of a gourmet restaurant does not include plastic menus or paper placemats. The second major mistake is to implement a system which gives a negative experience to the customer . Business leaders work on creating efficient results for saving time and money. Human beings are self-centered creatures with a thought in their mind to save money and time for us. For


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example, a customers asks do you accept credit card? Do you accept all credit cards or only master card and visa? If you don‟t accept these cards, does it make any difference in the

cost? Its just that you are losing sales. Then what are the other services you are giving to the customer in place which is the attraction for the customers. Any small inconvenience which will force the customer to say that “you are not completely service oriented” and encourages the customer to some other

brand. The third major mistake is that when you are not able to hire the best candidate. You easily hire anyone who applies and don‟t even put some efforts toBrand train them givesare a really terrible experience to the customers. promises delivered by

the staff. If your goal is to be a business leader you will invest time to train the staff. If you select a person who is very polite and does not even know how to dress up for an interview then you competition should send a thank you card for all the business you will send his way. People who want to become the business leader understand they are a great product They Delivering are authentic, dependable and reliable. Their icon isbrands. their name. the best of themselves is their brand promise. Do you want to become winner at working? Then, deliver the brand promise. Brand Association

Brand Associations are not benefits, but are images and symbols associated with a brand or a brand benefit. For example- The ke Swoosh, Nokia sound, Film Stars as with “Lux”, signature Ni tune Ting-ting-ta-ding with Britannia, Blue colour with Pepsi, etc. Associations are not “reasons-to-buy” but provide acquaintance and differentiation that‟s not replicable. It is relating perceiv ed qualities of a brand to a known entity. For instance- Hyatt Hotel is associated with luxury and comfort; BMW is associated with


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sophistication, fun driving, and superior engineering. Most popular brand associations are with the owners of brand, such as - Bill Gates and Microsoft, Reliance and Dhirubhai Ambani. Brand association is anything which is deep seated in customer’s mind about the brand. Brand should be associated

with something positive so that the customers relate your brand to being positive. Brand associations are the attributes of brand which come into consumers mind when the brand is talked about. It is related with the implicit and explicit meanings which a consumer relates/associates with a specific brand name. Brand association can also be defined as the degree to which a specific product/service is recognized it‟s product/service class/category. While choosingwithin a brand name, it is essential that

the name chosen should reinforce an important attribute or benefit association that forms it‟s product positioning. For instance Power book. Brand associations are formed on the following basis:

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Customers contact with the organization and it‟s employees;

Advertisements; Word of mouth publicity; Price at which the brand is sold; Celebrity/big entity association; Quality of the product; Products and schemes offered by competitors; Product class/category to which the brand belongs; POP ( Point of purchase) displays; etc

Positive associations developed if the productThe which the brandbrand depicts is durable,are marketable and desirable. customers must be persuaded that the brand possess the features and attributes satisfying their needs. This will lead to customers having a positive impression about the product.


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Positive brand association helps an organization to gain goodwill, and obstructs the competitor‟s entry into the market Co-branding - Meaning, Types and Advantages and Disadvantages


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Ad by Co branding is the utilization of two or more brands to Zombie name a new product. The ingredient brands help each Alert What is Co-branding

other to achieve their aims. overall synchronization between the brand pair and The the new product has to be kept in mind. Example of co-branding - Citibank cobranded with MTV to launch a co-branded debit card. This card is beneficial to customers who can avail benefits at specific outlets called MTV Citibank club. Types of Co-branding

Co-branding is of two types: Ingredient cobranding and Composite co-branding. 1. Ingredient co-branding implies using a renowned

brand as an element in the production of another renowned brand. This deals with creation of brand equity for materials and parts that are contained within other products. The ingredient/constituent brand is subordinate to the primary brand. For instance - Dell computers has co-branding strategy with Intel processors. The brands which are ingredients are usually the company‟s biggest

buyers or present suppliers. The ingredient brand should be unique. It should either be a major brand or should be protected by a patent. Ingredient cobranding leads to better quality products, superior promotions, more access to distribution channel and greater profits. The seller of ingredient brand enjoys long-term customer relations. The brand manufacture can benefit by having a competitive advantage and the retailer can benefit by enjoying a promotional help from ingredient brand.


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2. Composite co-branding refers to use of two renowned brand names in a way that they can collectively offer a distinct product/ service that could not be possible individually. The success of composite branding depends upon the favourability of the ingredient brands and also upon the extent on complementarities between them. Advantages and Disadvantages of Co-branding

Co-branding has various advantages, such as - risk-sharing, generation of royalty income, more sales income, greater customer trust on the product, wide scope due to joint advertising, technological benefits, better product image by association with another renowned brand, and greater access to new sources of finance. But co-branding is not free from limitations. Cobranding may fail when the two products have different market and are entirely different. If there is difference in visions and missions of the two companies, then also composite branding may fail. Co-branding may affect partner brands in adverse manner. If the customers associate any adverse experience with a constituent brand, then it may damage the total brand equity. Brand Extension - Meaning, Advantages and Disadvantages Brand Extensionis the use of an established brand name in new

product categories. This new category to which the brand is extended can be related or unrelated to the existing product categories. A renowned/successful brand helps an organization to launch products in new categories more easily. For instance, Nike‟s brand core product is shoes. But it is now extended to

sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that gives rise to a brand extension is referred to as parent brand. If the customers of the new business have values and aspirations synchronizing/matching those of the core business, and if these values and aspirations are embodied in the brand, it is likely to be accepted by customers in the new business.


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Extending a brand outside its core product category can be beneficial in a sense that it helps evaluating product category opportunities, identifies resource requirements, lowers risk, and measures brand‟s relevance and appeal. Brand extension may be successful or unsuccessful. Instances where brand extension has been a success are-

i.

Wipro which was originally into computers has extended into

ii.

shampoo, powder, and soap. Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate.

Instances where brand extension has been a failure are-

i.

ii.

In case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It thought that taste was the only factor that consumer cared about. It was wrong. The time and money spent on research on new Coca Cola could not evaluate the deep emotional attachment to the original Coca- Cola. Rasna Ltd. - Is among the famous soft drink companies in India . But when it tried to move away from its niche, it hasn‟t had much success. When it experimented with fizzy fruit drink “Oranjolt”, the brand bombed even before it could take off. Oranjolt was a fruit drink in which carbonates were used as preservative. It didn‟t work out because it was out of

synchronization with retail practices. Oranjolt need to be refrigerated and it also faced quality problems. It has a shelf life of three-four weeks, while other soft- drinks assured life of five months. Advantages of Brand Extension

Brand Extension has following advantages:


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1. It makes acceptance of new product easy. a. It increases brand image. b. The risk perceived by the customers reduces. 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. There are feedback benefits to the parent brand and the organization. a. The image of parent brand is enhanced. b. It revives the brand. c. allows subsequent extension. d. It Brand meaning is clarified. e. It increases market coverage as it brings new customers into brand franchise. f. Customers associate original/core brand to new product, hence they also have quality associations. Disadvantages of Brand Extension

1. Brand extension in unrelated markets may lead to loss of reliability if a brand name is extended too far. An organization must research the product categories in which the established brand name will work.


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2. There is a risk that the new product may generate implications that damage the image of the core/original brand. 3. There are chances of less awareness and trial because the management may not provide enough investment for the introduction of new product assuming that the spin-off effects from the original brand name will compensate. 4. If the brand extensions have no advantage over competitive brands in the new category, then it will fail. Why Do Brands Have Extensions ?

As the business environment is changing, the profile of the organizations as well as the way of conducting business is changing too. Use of technology andglobalization has changed everything about business.Marketing is no longer what it used to be. Online marketing has changed the face of conventional marketing and both are incomparable by any standards. When we look at the job profile of brand managers, we find that over the past few years, there have been several changes. Today‟s brand managers are not only planning product promotion and marketing services, but work as business managers responsible for the brand. They are in fact responsible for the sales, growth as well as the profits of the brand in Multinational companies. A strong brand may have a team of brand managers working on the brand across several geographic locations and countries. With the global brands being present in various markets, there arises the need for local factors and sensibilities to be built into the brand and into the brand management as well. Therefore it makes it imperative to build

a brand management team or structure that can work through micro and macro levels. Take a look at the shelf in the super market when you visit next time and you will be surprised to see that each of the leading brands be it in the medical section, soft drink or grocery item,


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there are likely to be multiple variations of the same brand with little difference. Of course we are talking about the brand extensions that have become the latest strategy adopted by brand managers to exploit the brand value. Coke is perhaps the best and the most common example where you get to see variations of coke in the shelf today. Brand extensions have become the norm of the day. The question that one needs to ask is whether such brand extensions are really required and worthwhile?. In the market place, where competition is very high and intense amongst brands, the brand managers are always under pressure on multiple fronts . First and foremost, for a

brand todeliver grow orincremental retain market share, therethe has to be Secondly, continual effort to value through brand. managements have increased expectations from the brand in terms of revenue growth, market share as well as the bottom line. Brand managers therefore are forced to opt for brand extension strategies in order to create product differentiation and to increase revenue streams. Sometimes, brand extensions become necessary to reign in some of the niche segments which may not be addressed by the parent brand and thus the brand extension helps gain incremental market share. Brand extensions are also considered to be the most natural progression for brands. When organizations spent a lot of investments into manufacturing and technology for launching the parent brand, they would not like to leave out any opportunity to capitalize on the capacity that they have created and maximize returns on investment. The next logical question one asks such brand extensions are useful andthat beneficial for is thewhether brand. What is the effect of brand extensions on the parent brand?. It is difficult to predict what the exact result would be for, the results in the case of such brand extensions have been mixed in the market. Brand Extension - A Success or Failure ?


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Brand management has become quite a challenge for brand managers as well as the Organizations today. Intense competition and the decreasing product life of a brand add further dimensions to the brand management problem. Brand managers by and large opt for brand extensions now days.

You can check any shelf in the super market and you will see variants of the same brand occupying the shelf space. This is true in all cases be it with a soft drink brand leader like Coke to a cream, shampoo or toiletry. Brand managers are always under pressure to grow the market share and increase revenue. Under constant pressure and intense competition, they find it easier to bring out brand extensions in order to provide continual change and an increased value perception to the consumers. Brand extensions also help them to capture the niche segments in the market that have not be covered by the parent brand. On the part of the management, brand extensions prove to help in maximizing capacity utilization and stretching resources to the maximum. However, the question that bothers every brand manager is whether such brand extension is good for the parent brand or whether it is a mistake that one is committing in the long run. There is no straight answer to this question. In some cases, brands like GE, Proctor & Gamble, Spencer‟s etc have been hugely successful in making foray into new businesses using the parent brand and stretching the brand. Brand extensions too have worked well for brands like Nivea, Dove and Loreal etc. In many cases, the brand extensions and stretching exercises have failed too. There is definitely a case for brand extensions in the market for various reasons. There is nothing wrong in a firm exploiting the brand image or brand value when they have strived to build the parent brand over a period of time. Economically too it makes sense for the company to resort to brand extension which is far cheaper than introducing and promoting a new brand. If


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successful, brand extensions can help strengthen the parent brand as well as capture the niche market segments no doubt. However, the thinking behind the brand extension and the strategy is what makes the brand extension a failure or a success. In cases where the brand extension is planned to auger

short term revenue, it may not withstand the test of times. The danger of brand extension is something that should be accounted for before jumping into brand extensions. The failure of a brand extension can affect the perception of the consumers with regard to the parent brand and damage the brand value. In Some cases, the brand extension products may not generate new revenue but eat into the parent brand‟s market share itself.

What works for brand extension is difficult to say. Depending upon the product, one can perhaps map the market and arrive at a good judgment. Categories like biscuits, soft drinks, chewing gum, sauces and jams etc generally do well with brand extensions. The same does not hold good in terms of all products. Branding experts opine that though there is no guaranteed formulae for success in brand extensions, when the same is carried out as a part of a well identified and planned strategy, it can be successful. A well identified and planned strategy involves identifying the core brand value and perception and building brand extension by retaining the same values but delivering increased value through brand extension. What is Brand Value

Branding has emerged as a corporate strategy in the recent times. All business organizations in all sectors have embraced the strategy of building their identity through their corporate brands besides the product related brands. Branding is definitely a marketing strategy. However the strategy of investing into brand building and managing the reputation of the corporate brand goes beyond marketing. Branding is considered to be a strategy that is


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driven and managed by the CEO or the organization along with the senior management as well as marketing heads. Over the recent years, we see new concepts of brand value, brand power and brand equity etc. being coined and measured. If marketing professionals found it difficult to justify and obtain sanctions for the brand promotional activity, today they no longer need to worry. Brand value and expenses towards brand building have become an accepted part of the balance sheet. Capitalizing the brand value and the expenses towards meeting the brand promotion are budgeted and accounted for in the balance sheets and in many cases the ROI of a brand is also calculated to reflect the brand value status over time. Brand management has gained prominence in recent times. The fact that we have global brands that have been well established for over fifty years goes on to prove the fact that brands certainly have the power to make or break in the markets. Goodyear, Coco Cola, Gillette, Nestle, Kelloggs, Schweppes, Brooke bond etc have been around for a very long time and have gained certain brand power to drive growth through brand reputation and relationship with the consumers. Marketers have realized the growing power of brands and have begun to nurture the brand image and cultivate value through brand ambassadors. Most of the lifestyle and luxury

brands globally and locally have well known actors and sports persons etc as brand ambassadors. Through the persona of the brand ambassadors, the marketers derive the power to connect with the consumers and build brand loyalty. Realizing the brand power also calls for working on the product quality and continuous modification both in the product as well as in the promotion of brand ambassadors. Building and growing strong brand at a global level calls for the entire organization to be brand oriented. The best example of building and realizing strong brand power and unleashing the brand value is Apple. If you think that the entire world outside is an Apple fan, you are right. But the entire


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organization within also worship their brand too. All of the strategies, decisions as well as day to day business decisions at all levels are directed towards promotion of and strengthening of the apple brand. The entire organization believes in the brand and all business processes are driven to build the brand and deliver superior customer experience through the brand. Apple as a global brand is perhaps the best example of a successful corporate brand. As much as the corporate strategy has got to account for the branding strategy, the marketing has also to ensure that they work on the different aspects of the brand packaging, design, etc and keep working on the brand so that it is consistent with the changing times, markets, consumer expectations and taste etc. The brands have their own value. The market leadership and profitability of a certain product or business is realized through the brand value. Growing the brand power and using

the brand value as a driver to increase profitability as well as the market calls for expert management of branding. Maintaining the leadership of a brand calls for strategic planning in the long term perspective. Brand Value Measurement

Brands have a certain value in the market as well as in the balance sheets of the organization that owns the brand. This is a matter that has been agreed upon by the industry. The accounting of the brand value and the methodology for calculation of the brand value is widely debated. When

organizations pay a huge premium or goodwill to acquire a brand, it becomes a strategic decision. However accounting for the premium paid is a matter that is discussed and debated by many in the industry. No doubt accountants would like to assign a tangible value to every asset owned by the company and brand value paid to


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acquire a particular brand and the business is also considered to be an asset. One of the systems followed by UK based business organizations is that they capitalize the entire value paid for acquiring the business and the same is depreciated over a period of time. Interbrand, the branding company has proposed a different method of accounting for the brand value. This method as well as the other methods that are proposed by industry experts take into account the future sales potential of the brand as well as its current market share to arrive at a definitive figure in terms of brand equity or brand power. Accordingly one of the models followed by the industry accounts for the net profit earned by the brand in the last three consecutive years in terms of value . To this, is added a

score that is derived out of measuring certain key factors associated with the brand like brand leadership, market share, trend, loyalty etc. Certain weight age is given to each of the factors and the total score is then converted into a certain value with the help of a multiple that is again derived out of a market study conducted for that particular sector. Similarly there are several other models and methods that have been proposed by experts in the industry. All of the models use a combination of qualitative and quantitative factors to arrive at a measurable value in terms of Brand Equity. Some of the

well known models are Brand Equity Index, Consumer Brand Equity Brand Asset by Longman Moran and Leo Burnett, Conversion Model Equity Monitor etc. The factors included in the above vary from Quality the brand Customer attitude, perception, market share,ofprice band,todurability etc. A reasonable model to measure brand equity becomes essential not only for the accountants but for the business Organization that is looking out to buy a brand. Valuation of a

brand and fixing the right price or premium for the brand needs a


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proven methodology and model that can guide the decision making. It is also true that one model cannot satisfy thefinance and accounts personnel as well as the business managers, for each one‟s perceptions and purpose of evaluation

is different. When brands are key to the growth and business strategy of the Organizations, the decision makers would definitely need proven and strong models to guide them for decision making. Besides the models they would need to analyze the brand equity from many other points of view of product portfolio, growth potential of the brand to see if a particular brand is the right choice for them. If there exists a strategic synergy between the brand and the buyer‟s business needs, then the

brand value is likely to change and the buyer might find that he is required to pay a premium over and above the perceived brand value. At what price does it make sense to acquire the brand is a decision that is critical to the buyer. Brand value models can certainly aid him in this decision making process. Brand Categories

Every marketing management student would have heard the story about origin of branding, that it was initially used to identify and isolate a particular stock of cattle in the west. From the Wild West, branding as a concept has grown and changed beyond its original purpose. Today brands have become the common tool for us to differentiate and recall various products and services. Branding in the current times is not limited to products and services alone. In fact you will find every type of organization and business stream using brand as a tool for differentiation, recall and identity. The fact that the brand identity that includes the visual logo also comprises of and represents a particular set of characteristics, values and the core culture of the brand owner. Branding is today used for a lot many purposes other than just to offer products and services to the consumers.


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Of course when we think of brands, the first category that comes to our mind is that of product and service brands. These are mostly stand alone brands that are strongly product centric. Kelloggs, Coco Cola, Lays, Johnie Walker etc, are strong product brands. The immediate recall in the consumer‟s mind is that of the

particular product that it represents. Xerox originally became such a very successful and strong brand that people started calling photocopier machines as Xerox machine. Even today this brand name continues to be used to refer to the photocopiers. There are also the Line brands comprising of a exclusive set of product lines under a brand name. Take a look at the computer industry, all the different types of laptops and desktops are bundled under a particular series or a particular line brand. Dell‟s

Studio series meant for digital and multi- media as well as animation and graphic users and Inspira series for computing are the best examples of line brands. L‟oreal studio line of products is

another good example of line brands. When experts talk about brand extension and line extensions as well as product extensions, it becomes difficult to compartmentalize each category. Take the case of diet coke. Some experts call it a brand extension, while the others feel it is a product or line extension. Ultimately, the marketing professionals who have worked out the strategy for the brand know it the best. Range brands are the next best type of branding used especially in the retail industry. Oral B is perhaps of the best known global brands comprising of several range of products related to dental care. This concept is also used exclusively in the automotive industry too. Toyota Range Brand Lexus.has a series of models and cars under its Umbrella branding is another highly successful methods of building different product lines under single brand image that emphasizes a standard core value proposition across the products under its brand. Nivea, Sony, Virgin are possible the


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most visible and successful global umbrella brands with several product lines developed under the strong brand image. Corporate brand has been adopted as a successful branding strategy by Organizations to build their Corporate identity. Global multi-national giants like GE, Phillips, Samsung, IBM, HP, P&G, Nestle, etc have successfully built a strong corporate identity. Similarly the banks and insurance companies etc like HSBC, BOA, Citi bank, AIG, etc have are strong corporate brands that represent the organization. It is another matter that they have product brands that are equally famous and well known in their product offering. P&G and Nestle deal with various products each having their own successful product labels and brands. Similarly GE has varied business interest in different fields. The corporate GE brand is perhaps the best known identity for the organization globally. Industry academicians and experts have listed several more types of brands that are categorized exclusively as designer labels, exclusive store or boutique brands as well as family brands etc. There are also media brands as well as e brands that are the new additions to the brand wagon. In many cases the brand categories have a thin line of boundary between them and sometimes the products can also be categorized under multip le brand cate

gories depending upon the brand and product category etc.

Do Brands Happen or are they Made Are brands built or do they just happen over a period of time?. Well, this is a difficult question to deal with for, both are true. One of the essential characteristics of successful brands being the fact


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that they withstand the test of time, we should agree that in many cases the brands actually become successful due to the customers and the achieve a cult status over a period of time. Look around some of the most famous brands that have not only created a cult and global fan following, but have become closely associated with the lifestyle and social culture of individuals and society. Brands like Marlboro, Harley Davidson,

Apple, Mont Blanc etc have become a part of the psyche and culture of communities across the world. Most often you will find that the individual pegs his success by owning a Harley Davidson or a Merc. Only when he has purchased and possessed one of these brands does he consider that he has made it in life or has arrived. Ask the owners of these brands whether they had thought of building the successful brand at the beginning of their success story and in all probabilities, they would never have expected to do so. In the natural course off business, these Organizations have rolled out products to further their business. In order to build loyalty and deliver increased value to the customers, they would have invested in enhancing the value proposition continually and focused on promoting the brand. Over a period of time, the promotional activities and the product would have matched with the aspirations and expectations of the customers leading to intense loyalty on the part of the consumers with the particular brand. Thus the brand acquires the power and status. We must at this point of time recognize that the empowerment of the brand has happened from the customer‟s end. Realizing the phenomenon of increased brand power, the Organizations would have engaged in building the brand and advertising to increase its reach and acceptance. Slowly with more and more customers enlisting their loyalty to the brand, it becomes a cult. When a brand commands huge popularity and becomes a cult, you will note that the organization has been involved in sustaining and growing the brand. They invest into the brand interms of its


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utility, features, quality and promise as well as build some of the implied values or soft values that appeal to the customers and makes the brand endearing. Harley Davidson promises a certain kind of adventure, freedom and spirit, thus appealing to that adventurous streak in men who begin to identify with it and thus form communities and groups to celebrate the brand. Take the case of Mac, you will find techies being die hard apple fans across the world. The product is distinctly different from the rest of the computers in the form of itsoperating systems and capabilities. Customers are hooked to Macs not only for the ease of use, but for the technical capabilities, superior performance and unmatched quality. The brand comes with a guarantee and no Mac user ever thinks of comparing Mac with others or even contemplates doubting the capabilities of a Mac. You can see in this case, that the brand is backed by the superior product quality and performance as well as contains an unsaid promise from the brand owners. Corporate Branding – A Discussion

Today branding as an image building and identity building process has been adopted by virtually every segment of the society. Though we are more aware of branding in the products and services sectors, corporate branding as well as branding by different sectors such as sports, NGO, Cultural and religious organizations including country and regional brand building by nations can be witnessed in different fields. Branding and image building has become an important exercise for all Organizations as well as institutions. As far as the organizations go, brand building has become a strategic move, one that is not owned and crafted by their marketingdepartments. It is the CEOs and the senior management who own and manage the corporate brand identity. In fact in some cases, the promoters of the Organizations have their own individual brand identity coupled with having to build


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and manage their Business or corporate identity as well. Richard branson is perhaps the best example where he is a brand in himself as well as owns the corporate brand of „Virgin‟ Group. Corporate brand is not just a brand identity for the organization. It is actually representative of the core values, ethics and the value proposition that the organization stands for in relation to its business and its customers. To a large

extent the corporate brand is also the ambassador of the culture and value system of the Organization and its reputation. Brand value or measure of a corporate brand has to be evaluated in terms of its relevant to the customers, its value proposition to its customers as well as its value as perceived by the investors as well. The stock market sentiments are perhaps reflectors of the brand image and value of a corporate brand. As far as the investors are concerned, they measure the co mpany‟s performance in terms of brand value too, besides the balance sheet performance. Industry experts have created models to measure the brand equity of an organization as well as to measure the brand value in the eyes of investors etc. Maintaining the core brand value, the brand image lies with the management of the Organization. Creating and delivering brand value experience is an activity that encompasses thethe entire Organization including all business processes and employees of the Organization. In the changing market environment, the customer perceptions and requirements keep changing as well. The Corporate branding has got to be managed keeping in line with the new developments as well. There has got to be continuous enhancement of value offering by the Corporate brand keeping in line with the changing markets and consumer perceptions. Take the case of IBM. The corporate brand image took a beating for some time when the Organization which was a leader in its industry segment lost touch with the changing environment and failed to keep up with the changing needs. It took a while for the Organization to realize its mistake and make the required changes to divest certain


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businesses and strengthen their focus on the key business segment and once again rise to the challenge of becoming a leader in its segment. Though the corporate brand did take a beating, the brand image and value certainly helped the organization charter its new course and make that course correction without losing its reputation in the market. Today’s consumers and customers are highly aware and make their informed choices. To be able to build customer loyalty and sustain the leadership position in the long run, the organization has got to work on its corporate brand value and deliver superior brand experience at all times. The brand

experience is a mixture of real time experience that is the outcome of interaction with the customer as well as his perception of the brand experience which is a cumulative impression of his past and present experience, knowledge as well as the perception of the Organizational value and reputation


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Brand Management Notes(amity university)

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