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S T R A T E G I C B R A N D

M A N A G E M E N T

Introduction to the concepts of Brand

Management

MODULE-1

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S T R A T E

G I C B R A N D

M A N A G E M E N T

•

• –Meaning, Definition, Evolution of Brands,Functions of Brand to consumer, Role of Brand-

Advantages of Brand, Product Vs Brand.• - Meaning, Creation of Brands throughgoods, services, people, Organization, Retail stores, places, online, entertainment, ideas, challen

ges to Brand builders.• -Meaning & Definition.

• -Meaning,Steps in Brand Management Process.

• Strong Indian Brands (Case study)

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

Before Nike there

were sneakers.

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M E N T

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S T R A T E

G I C B R A N D

M A N A G E M

E N T

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S T R A T E

G I C B R A N D

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S T R A T E

G I C B R A N D

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S T R A T E

G I C B R A N D

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S T R A T E

G I C B R A N D

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S T R A T E

G I C B R A N D

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S T R A T E

G I C B R A N D

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S T R A T E

G I C B R A N D

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S T R A T E

G I C B R A N D

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S T R A T E

G I C B R A N D

M A N A G E M

E N T “A brand is a name, term, sign, symbol, o

r design, or a combination of them,intended to identify the goods and services of one seller or group of sellers & to differentiate them from those of competitio

n” (AMA)

• It is able to choose a name, logo, symbol,package design, or other characteristics t

hat identifies a product & distinguish it from others.

• A product may die but the brand will susta

in. 26

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27

1. Technology and performance are not a differentiating platform.

2. The life cycles of products are getting shorter.3. The new consumer is smarter and moreaware about the commitment of brands.

4. Employees need to feel proud of their workplace.

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• Brands start off as products made out of certain ingredi

ents. over the period of time, brands are built through marketing activities & communications.

• In this every retailer then started developing symbols to represents his specialty.

• Brands thus became differentiating device & remains so

even today.• Branding makes it easier for consumers to identify produ

cts & services.• Brands helps to simplify a consumers shopping.• Brands have emotive associations.• 1800 P&G and other consumer products companies beg

an branding their products.• 1950 brand personality was developed.• 1980 brand equity developed as a concept.

• 1990 branding emerged.

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M A N A G E M

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29

Brand

differentiate identify from their competitor their goods &

services

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S T R A T E

G I C B R A N D

M A N A G E M

E N T

Name Design

Identifiesproduct/service

of seller and

differentiates from

competitors

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M A N A G E M

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Product

Scope

Attributes

Uses

Quality/value

Functional benefits

Organizational asso

ciations

Brand

Personality

Symbols

Self-expressive

benefits

Emotional

benefits

User Imagery

Country of o

rigin

Brand

Brand/customer relati

onships

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S T R A T E

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32

Five

Factors

as

the key

toenduring

Brand

Leadership

FiveFactors

Vision of theMass Market

ManagerialPersistence

FinancialCommitment

RelentlessInnovation

AssetLeverage

Key Success Factor : Evolve over the years, Make a number of changes

The Most well known, Highly regarded

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1. Represents product category & class.

2. Represents brand’s re

sponsibility

3. Risk reducer.

4. Reduces cost of search

5. Represents status andimage.

6. Sign of quality.

• Consumers’ greater loyalty.

• Lower sensitivity of the consumer towards

• competitor's activity.• Ability to reduce damages in tim

es of crisis.

• Higher margins.

• Low sensitivity of consumers toprice increases.

• Higher cooperation with marketing channel.

• Greater effectiveness of marketi

ng• communication.

• Higher potential for brand extension.

• Provides competitive advantage.

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S T R A T E

G I C B R A N D

M A N A G E M

E N T

Identification of source of

product

Assignment ofresponsibility to product

maker

Risk reducer

Search cost reducer

Promise, bond, or pact

with maker of product

Symbolic device

Symbol of quality

Means of identification to

simplify handling ortracing

Means of legallyprotecting

unique features

Signal of quality level to

satisfied customers

Sources of competitive

advantage

Source of financial

returns

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• Increases the Brand awareness.

• Brands reduces risks.

• It helps to provide specific information& assures the specific quality.

• Brands provides symbolic consumption.

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• It’s the process by which a marketer tries tobuild a long term relationship with the customers

• It can also be viewed as a tool to position a pro

duct or service.

• It influences the customers choice and helps ensure repeat purchase.

• Branding is a conscious customer satisfaction orientation process.

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S T R A T E

G I C B R A N D

M A N A G E M

E N T

The Key to Branding

• For branding strategies to be successful, consumersmust be convinced that there are meaningful differences among brands in the product or service category.

• Consumer must not think that all brands in the category are the same.

• PERCEPTION = VALUE

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As companies accept that brands are positive, though intangible assets, they must plan brand management teams for obtaining

the optimum results, these teams should be formed on cross-functional basis with key representatives form departments that af

fect the brand equity and brand performance, there should be brand management directors committee to oversee the brand team's operation.

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M A N A G E M

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• Brands can become effective tools of differentiating products as they keep creating goodwi

ll & become company’s assets, a good brand’s price fixation becomes easier as higher price and the price of competitive products can

be changed.

• Brands have given a major fillip (boost) to customer buying habits, customers are known to love some brands and are ready to swearby them. These customer take on themselvesthe role of brand advertisers or even brand a

mbassadors.

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G I C B R A N D

M A N A G E M

E N T

•

–

–

–

–

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E N T

• “Though products may change thespirit of the brand remains the sam

e”.

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S T R A T E

G I C B R A N D

M A N A G E M

E N T

1. A brand aims to segment the market.

2. A brand has an enduring value.

3. A brand tries to protect your innovation.

4. A product may die but the brand will su

stain.

5. A brand is a living memory.

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S T R A T E

G I C B R A N D

M A N A G E M

E N T

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G I C B R A N D

M A N A G E M

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44

PhysicalGoods ServicesRetailer

&

Distributor

Online

Product

&Services

People

&

Organization

Sports,

Arts

&Entertainment

Geographic

Locations

Ideas

&

Causes

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S T R A T E

G I C B R A N D

M A N A G E M

E N T

• Physical goods are what are traditionallyassociated with brands & include manyof the best known & highly regarded co

nsumer products.• Ex: Coca Cola, Mercedes Benz, Nescaf

e, Sony,,,,

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M A N A G E M

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• Although strong service brands like American Express, British Airways, Hilton Hotels,Merrill Lynch, Federal express have existed for years but pervasiveness of service branding & its sophistication have accelerated in the past decade.

• Branding a service can also be an effective way to signal to consumers that the firmhas designed a particular service offeringthat is special & deserving of its name.

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• It is straightforward when the product category is people & organizations.

• These often have well defined images that

are easily understood & liked by others.• That’s particularly true for public figures s

uch as politicians, entertainers & professio

nal athletes.• Organizations often take on meanings thro

ugh their programs, activities & products.

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G I C B R A N D

M A N A G E M

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• Brands provides number of functions to R& D.

• Brands can generate consumer interest, p

atronage & loyalty in a store as consumerlearn to expect certain brands & products.

• Retailers can introduce their own brands b

y using their store name, creating new names or some combination of the two.

• Ex: Many Europe distributors are using the

ir own brands.

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• The number of people in US with access to the internet from their homes.

• It is critical to create unique aspects of th

e brand on some dimension important to consumers, such as convenience, price, variety & so forth.

• Online brands also learned the importanceof off line activities to draw customers toweb sites & many of the most successfulbusiness ventures came about when off li

ne brands like pampers diapers, British air

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• A special case of marketing people & organization as brands exists in the sports, arts, & entertainment industries.

• Sports marketing has become highly sophisticated in recent years, employing traditional package goods techniques.

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• Numerous ideas & causes have been branded, especially by non profit organizations.

• By making ideas & causes more visible &concrete, branding can provide much value.

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MediaFragmentation

IncreasedCompetition

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• Strategic brand management involves the designand implementation of marketing programs and activities to build, measure, and manage brand equity.

• The strategic brand management process is defined as involving four main steps:

1) Identifying and establishing brand positioning and

values..2) Planning and implementing brand marketing progr

ams.

3) Measuring and interpreting brand performance.

4) Growin and sustainin brand e uit .

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S T R A T E

G I C B R A N D

M A N A G E M

E N T

• Mental maps

• Competitive frame of reference

• Points of parity and points of differences

• Core brand values

• Brand mantra

• Mixing and matching of brand elements

• Integrating brand marketing activities

• Leverage of secondary associations

• Brand value chain

• Brand audits

• Brand tracking

• Brand equity management system

• Brand-product matrix

• Brand portfolios and hierarchies

• Brand expansion strategies

• Brand reinforcement and revitalization

Identify and Establish

Brand Positioning and Values

Plan and Implement

Brand Marketing Program

Measure and Interpret

Brand Performance

Growth and Sustain

Brand Equity

Steps Key Concept

•

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G I C B R A N D

M A N A G E M

E N T

1. The SBM Process starts with a clear understanding of what the brand is to represent and how it should be positioned with respect to competitors, brands positioning c

an be defined as the “ act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s mind” such that the potential benefit to the firm is maximized, competitive brand positioning is all about creating brand superiori

ty in the minds of consumers.2. Positioning also often specifies the appropriate core bra

nd associations and brand mantra. A Mental Map is a visual depiction of the different types of associations linked to the brand in the minds of consumer.

3. Core brand associations are the subset of associations that best characterize a brand. To further focus what a brand represents it is also often useful to define brand mantra, also known as brand essence or core brand promise.. A brand mantra is a short three-to five-word expression of the most important aspect of a brand and its c

•

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G I C B R A N D

M A N A G E M

E N T

Building brand equity requires creating a brand that consumers are sufficiently aware of and with which they have strong, favorable,and unique brand associations

1. Choosing brand elements: the most common brand elements arebrand names, logo’s, symbols, characters, packaging and slogan

s, a number of options and criteria are relevant for choosingthem to enhance brand awareness or facilitate the formation ofstrong favorable and unique brand associations

2. Integrating the brand into marketing activities and the supportingmarketing program: although the judicious choice of brand elements can make some contribution to building brand equity, the biggest contribution comes form marketing activities related to the brand , marketing programs can create strong, favorable and uniquebrand association in a variety of ways.

3. Leveraging secondary association : the third and final way to build brand equity is to leverage secondary associations, brand association may themselves be linked to other entities that hve theirown association, creating these secondary association

:

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M A N A G E M

E N T

1. The task of determining or evaluating a brand’

s positioning often benefits form a brand audi

t, a brand audit is a comprehensive examination of a brand to assess its health, uncover its sources of equity and suggest ways to improve& leverage that equity , a brand audit requ

ires understanding sources of brand equityform the perspective of both the firm and theconsumer.

2. A brand value chain is a means to trace the value creation process for brands, to better understand the financial impact of brand marketingexpenditures and investment.

’

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M A N A G E M

E N T

• Defining the branding strategy: the firm’s branding strategy provides general guidelines about which brand elements to apply across its produc

t, two main tools in defining the corporate branding strategy are the brand- product matrix andthe brand hierarchy.

• The brand-product matrix is a graphical representation of all the brands and products sold by the firm

• The brand hierarchy displays the number and nature of common and distinctive brand component across the firm’s products by capturing the

potential branding relationship among the different products sold by the firm.• It involves: Defining brand strategy, Managing br

and equity over time, Managing BE over geographical boundaries, cultures & market segments.

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M A N A G E M

E N T

Documents

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