Brand Management Final session By K Anandhi CII-IL Brand A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products. An Effective Brand Name ● Is easy to pronounce ● Is easy to recognize and remember ● Is short, distinctive, and unique ● Describes the product, use, and benefits ● Has a positive connotation ● Reinforces the product image ● Is legally protectable Branding Brand Name That part of a brand that can be spoken, including letters, words, and numbers. Brand Mark The elements of a brand that cannot be spoken. Brand Equity The value of company and brand names. Awareness, quality, loyalty, patent and trademark. Benefits of Branding Powerful asset/tool in establishing competitive advantage translates into brand equity ( the value of the company and brand names) Product identification! Consumers familiar with brand Often equates to quality Global brand = 20% of product sold outside home country Acts as an ambassador Advantages of Branding Consumer’s viewpoint 1. 2. 3. 4. Product quality and consistency Increased shopper efficiency/identification Calls attention to new products Reduces psychological risk Seller’s viewpoint 1. Handling orders, tracking down problems 2. Trademark – legal protection and unique product feature. 3. Brand equity and brand loyalty 4. Reduces need for in-store contact 5. Facilitates segmentation, promotion, and pricing The World’s Most Valuable Brands Major Branding Decisions Brand Name Selection Selection Protection Brand Sponsor Manufacturer’s Brand Private Brand Licensed Brand Co-branding Brand Strategy Line Extensions Brand Extensions Multibrands New Brands Branding Strategies Brand Manufacturer’s Brand Individual Brand Family Brand No Brand Private Brand Combination Individual Brand Family Brand Combination Generic Brand A no-frills, no-brand-name, low-cost product that is simply identified by its product category. Manufacturers’ Brands Versus Private Brands Manufacturers’ Brand The brand name of a manufacturer. Private Brand A brand name owned by a wholesaler or a retailer. Also known as a private label or store brand. Individual Brands Versus Family Brands Individual Brand Using different brand names for different products. Family Brand Marketing several different products under the same brand name. Four Brand Strategies Product Category Brand Name Existing Line Extension Existing Godrej Fair glow fairness Washing machine. New Multibrands New Brand Extension Brand Rejuvenation Brand Relaunch Brand Proliferation New Brands Name Ex: Manikchand Line Extension Development of a product that is closely related to one or more products in the existing product line but designed specially to meet the somewhat different needs of customers. Brand extension Extending the brand to another form of same product. (e.g. Toothpaste) Product Line extensions e.g. Saffola Oil. Reaching new categories Fairness creams to soap. Easy flow of soaps in the market Two Types: Upward brand extensions (upper market segment) Downward brand extensions (lower market segment). Ex. Nirma Brand Rejuvenation Process of revitalizing an ailing brand. E.g. Cadbury’s, Horlicks Three steps involved 1. Discovery: process of identifying the company and what they mean to the customers 2. Innovation: shortcoming are removed and tested on loyal customers and wholesalers. 3. expression: project positive image of the brand in the customer’s minds. Product Relaunch: Product launched after a time gap. Brand Proliferation It is an introduction of product with new brand names in the same product category. It is converse of brand extension. It helps to increase the market share of the product. Eg. HUL with different brand of same type of products. Disadvantage: Company’s brands compete with each other Company has to divide the resources among these brands for their maintenance. The cost of distribution ,advertising, packaging and inventory costs also go up significantly. Multibrands Firms adopt multiple branding strategies to capture a greater market share by filling the gaps in the market and catering different buying pattern of the customers. Ex: nokia cell phone, Bike Disadvantage With the multi-branding strategy is that the company may obtain a smaller market share of all the brands. Cobranding AOL Types of Cobranding Ingredient Branding Complementary Branding Cooperative Branding On Line http://www.kelloggs.com http://www.disney.com On Line http://www.postcereal.com http://www.quakeroats.com Co branding Two or more brand names on the product or its package – Ingredient branding i.e., Hero Honda recommending MRF tyres – Cooperative branding Airline/hotel/credit card packages Borrow on each other’s brand equity – Complementary branding Advertised or marketed together to suggest usage–Coco cola recommending kinley mineral water. Brand Management Brand equity: The goodwill (equity) that an established brand has built up over its existence. “DREK” -- differentiation, relevance (strength) -- esteem, knowledge (stature) Brand concept: specific meaning that brand managers create and communicate to the target market. Brand concept management: the analysis, planning, implementation, and control of a brand concept throughout the life of the brand. Semiotics: Science of signs E.g HUL testing Power Brands(30) Packaging Contain and Protect Promote Facilitate Storage, Use, and Convenience Facilitate Recycling Functions of Packaging This business-to-business ad offers to provide ecologically sound packaging. Packaging Besides its impact on the environment, what aspects of packaging can help/hinder product sales? How have these products become known by their packaging: •Cracker Jacks? •Capri Sun? Activity of designing and producing the container or wrapper for a product. Packaging used to just contain and protect the product. Packing now has promotional value and marketers should: – Establish a packaging concept, – Develop specific elements of the package, – Tie together elements to support the positioning and marketing strategy. – VIEW Model Packaging Not just the container– part of the on-going promotion/advertising #1 job is still containment/protection of product #2 Promote the product – Way to differentiate from competitors – Inform the customer (ingredients, size, etc.) – Colors to cue customers (green = healthy) #3 Faciliate storage, use and convenience – Also way to segment market (sugar in big crummy bag vs. carton== type of user, single servings, kid friendly/safe) #4 Facilitate recycling and reducing environmental damage A classic labeling example . Labeling What about thi s l abe l he lps to se ll the pr oduc t? Click or pres s s pacebar to r et urn. Printed information appearing on or with the package (e.g., Nutrition Facts Panel) Performs several functions: – Identifies product or brand – Describes several things about the product – Promotes the product through attractive graphics. Labeling Persuasive ● Focuses on promotional theme ● Information is secondary Informational ● Helps make proper selections ● Lowers cognitive dissonance ● Includes use/care Packaging and Labeling Persuasive: promotional first, and customer information is secondary – Use a logo or theme – “New”, “improved” don’t do as much for consumer Informational labeling: Help consumer make “right” choice and lessen possible cognitive dissonance i.e., nutrition labels, care information, construction standards, etc. Universal Product Codes A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products. Any doubts???