Branding

Warming up to brands 7th August 2007

Let’s identify the brands associated with these visuals and slogans

Slogans  Just

do it!  Kuch meetha ho jaye  Impossible is nothing  Connecting people  Lagey raho  Express yourself  Keep walking!  There are some things money can’t buy. For everything else there is …..

Slogans  It’s

hot!  The world’s local bank  The Citi never sleeps  The power of knowledge  The best a man can get  God’s own country  The taste of India  Do you have it in you?  Think different

Brands….The beginning

Roots  Uniformity

is the mother of branding  Identity is lost due to homogeneity as there is no differentiation  Origin of the word ‘brand’ lies in the Norse word ‘brandr’ which means ‘to burn’  In early times, farmers used to identify their livestock with a burn mark or a symbol  Distillers branded their casks

Roots  The

producers’ names identified the products - Smirnoff, Ford, Mercedes, Levi Strauss

Today….  Brands

are an integral part of our life products; services; people; places; football clubs; fictional characters; virtual worlds….  They are intangible assets that need to be exploited

Savour this  Indian

firms eye Jaguar, Land Rover

- Tata - Mahindra & Mahindra  World’s top 100 brands worth more than India’s total m-cap - $ 1.15 trillion - More than combined market value of over 4000 listed cos. in India

We work not for ourselves, not for the company, not even for our clients. We work for Brands Brand Stewardship (Ogilvy)

To be most valued by those who most value brands Brand Stewardship (Ogilvy)

Brand A Brand is a product which has earned a place in the consumer’s life through perception, experience, beliefs, feelings ....... until a relationship is built It is the sum of how consumers feel about a product Brand Stewardship (Ogilvy)

Brand “A brand is nothing more or less than the sum of all the mental connections people have around the product. Memories from childhood, something your mum said ... and in the case of newer brands, memories from ads. The trick is to arrange things so that the mental connections around the brand are enhancing” Michael Perry Former Chairman & CEO, Unilever

Brand “Consumers build brands the way birds build nests... from scraps and straws they chance upon”

Jeremy Bullmore Former Chairman JWT

The ‘classic’ definition  Keller:

“A brand is a set of mental associations, held by the consumer, which add to the perceived value of a product or service”

Mental associations  Unique

(Exclusivity)  Strong (Saliency)  Positive (Desirable)

Mental associations  What

is the brand territory (perceived competence; typical products or services; specific know-how)? - Gillette - Apple - Virgin - Nokia - Dettol - Karim’s?

Mental associations  What

is its level of quality (low; medium; premium; luxury)?  What are its qualities?  What is its most discriminating quality or benefit (also called perceived positioning)? - Burnol is for burns - Marlboro is not just a cigarette; it’s about fierce independence; about being macho - Hummer: Like nothing else

Mental associations  What

typical buyer does the brand evoke? - Harley Davidson - Goa - Rolex  What is the brand personality and brand imagery?

Beyond mental associations….  The

power of a name is also due to the specific nature of the emotional relationships it develops  Patents and rights are of course a key asset. They provide competitive advantage over a period of time

Brand anatomy

Brand Gestalt Brand Personality Visual Appearance Country of Origin User Imagery

Physical Product Attributes Quality Uses Tangible Benefits

Logo Brand Customer Relationship Emotional Benefits

Source: Soni Simpson, Stuart Graduate School of Business

Brand A

synthesis of all elements, physical, aesthetic, rational AND emotional

 End

result =

– appropriate – differentiated – relevant

Brand The Coca-Cola Brand Is…  1800s

Heritage

The Real Thing

 Americana

Battles with Pepsi

 Sold

Logo

Everywhere

Brand The McDonald’s Brand Is…

 The

Big Mac

 French  Fun

Fries

For Children

 Golden

Arches

Happy Meals Red and White Restaurants Ronald McDonald Value for Money

How do brands provide value?

Providing Value to Customers  Short

cut for interpreting, processing and storing information  Gives confidence in the purchasing decision - reduces risk  Enhances use satisfaction

Providing Value to the Firm  Enhance

the effectiveness and efficiency of marketing programs - one of the rewards for risk- taking  Decrease brand switching  Higher prices and margins (Brand-involved consumers bargain less)  Trade leverage  Competitive advantage

The Product and the brand

Product  Kotler:

“A product is anything that can be offered to a market to satisfy a want or need”

What is a Product?  Kotler’s

Five levels to a product:

Potential Product

All the augmentations and transformations that a product might ultimately undergo in the future

Augmented Product

Additional product attributes, benefits, or related services that distinguish the product from competitors

Expected Product

Attributes and Characteristics that buyers normally expect and agree to when they purchase a product

Generic Product

Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.

CORE BENEFIT

The Fundamental Need or Want that consumers satisfy by consuming the product or service

Product and brand Product = Commodity A product is a produced item always possessing these characteristics: • Tangibility • Attributes and Features

Brand = “Mind Set” The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits Source: Soni Simpson

Product and brand  Products

come to life, live and disappear, but brands endure e.g. Zen, Honda City, Bajaj  A brand is the memory of the products  A brand is less elastic than its product. Once created, like fast-setting concrete it is hard to change

Are leading brands the best products?  Not

necessary  To be the ‘best’ means to compete in the premium tier which is rarely a large segment  The brand with the best quality/price ratio is market leader

Are leading brands the best products?  Most

brands are born out of a product or service innovation (ipod; Sony walkman and discman)  Later, as the product name evolves into a brand, customers’ reason for purchase may still be the brand’s “superior performance” image

Are leading brands the best products?  It

seems that brands alternate in their focus. They capitalise on their image, then innovate to recreate or nurture the belief of product superiority, then recapitalise on their image, and so on e.g. Gillette, Sony

Branding

Branding  Transforming

a commodity like product into customer satisfying value added propositions is the essence of branding

Branding

Brand Imposing One’s Will OLD On SCHOOL THINKING The Consumer DIPLOMA

Branding “ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.” Kevin Roberts, Saatchi and Saatchi

Branding “ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.” Kevin Roberts, Saatchi and Saatchi

Branding Love * Mark

TradeMark Trust-Mark

POWER BRANDS •Attached to Consumers Those Brands which are •Deep respect particularly well adapted to for the way products fit into Consumersand lives which the environment = “Core” of Success thus, survive and flourish.

4 components of branding  Building

the brand: Brand Identity is the first step; Brand positioning etc.  Leveraging the brand: Line extensions; Brand extensions; Co-branding  Identifying and measuring brand equity: consumer relationships; brand financial value etc.  Protecting: Dilution; Legal aspects

Suggested reading  Visit

brandchannel.com and read the Interbrand 2007 report on global brands  Case study  “Branding for President”  “The New Strategic Brand Management” by J.N.Kapferer. Chapter 1 & 2

Suggested reading  “Brand

Management: Text & Cases” by Harsh Verma. Chapter 1  Strategic Brand Management by Kevin Lane Keller