Siddharth Sharma

Brand management begins with having a through

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

To a consumer, brand means and signifies

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

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

Definition
Any brand is a set of perceptions and images that

represent a company, product or service. While many people refer to a brand as a logo, tag line or audio jingle, a brand is actually much larger. A brand is the essence or promise of what will be delivered or experienced.

 Importantly, brands enable a buyer to easily identify

the offerings of a particular company. Brands are generally developed over time through:
Advertisements containing consistent messaging Recommendations from friends, family members or

colleagues Interactions with a company and its representatives Real-life experiences using a product or service (generally considered the most important element of establishing a brand)

Brand Positioning

Brand positioning refers to target consumers reason to buy your brand in preference to others.

Definitions
The process by which marketers try to create an image

or identity in the minds of their target market for its product, brand, or organization. identifying a market niche for a brand, product or service utilizing traditional marketing placement strategies (i.e. price, promotion, distribution, packaging, and competition). Also positioning is defined as the way by which the marketers creates impression in the customers mind.

Brand Positioning Concepts

Core Idea Concept simply describes the product or

service Positioning Statement is a business person's articulation of the target audience qualified idea that would be used to develop a creative brief for an agency to develop advertising or a communications strategy.

 Differentiation in the context of business is what a

company can hang its hat on that no other business can. For example, for some companies this is being the least expensive. Other companies credit themselves with being the first or the fastest. Whatever it is a business can use to stand out from the rest is called differentiation. Differentiation in todays overcrowded marketplace is a business imperative, not only in terms of a companys success, but also for its continuing survival.

Brand positioning process

Identifying the business's direct competition (could

include players that offer your product/service amongst a larger portfolio of solutions) Understanding how each competitor is positioning their business today (e.g. claiming to be the fastest, cheapest, largest, the #1 provider, etc.) Documenting the provider's own positioning as it exists today (may not exist if startup business)

 Comparing the company's positioning to its competitors' to

identify viable areas for differentiation Developing a distinctive, differentiating and value-based positioning concept Creating a positioning statement with key messages and customer value propositions to be used for communications development across the variety of target audience touch points (advertising, media, PR, website, etc.)

Brand Positioning Strategies

A low-cost leadership strategy entails the process of

appealing to the broad spectrum of potential buyers by being able to offer an overall low cost product or service. Example: Walmart. A broad differentiation strategy is one in which a business seeks to differentiate its products or services from their competitors in ways that attract the broadest spectrum of customers in an established industry. Example: Mercedes cars, Apple

 A best cost provider strategy is one that offers

customers more value for the buck, with a lot of emphasis on the low cost of the product or service in comparison to its high quality. Great example is Toyota with its Lexus luxury models.

 A focused strategy on lower costs is a brand

positioning strategy that concentrates on out competing rivals, by offering customized products or services at a lower cost to a smaller portion of the established buyers. Example: many small retailers offering their own label or discounted line of products.

 A focused strategy based on differentiation is one in

which the focus is on a narrow segment of buyers who are offered a product or service that has been customized to meet their exact tastes and demands and supersedes what competitors are offering. Example: any successful niche retailers (The Perfume Shop, etc.).

Positioning Errors
Under positioning- This is a scenario in which the

customers have a blurred and unclear idea of the brand. Over positioning- This is a scenario in which the customers have too limited a awareness of the brand. Confused positioning- This is a scenario in which the customers have a confused opinion of the brand. Double Positioning- This is a scenario in which customers do not accept the claims of a brand.

Five Basics Pyramid for Positioning

Brand Extension
Brand Extension is 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, Nikes brand core product is shoes. But it is now extended to sunglasses, soccer balls, basketballs, and golf equipments

 Advantages of Brand Extension It increases brand image. The risk perceived by the customers reduces. The likelihood of gaining distribution and trial increases. The efficiency of promotional expenditure increases Cost of developing new brand is saved. Consumers can now seek for a variety.

 The image of parent brand is enhanced.

It revives the brand. Brand meaning is clarified.

Disadvantages
Brand extension in unrelated markets may lead to loss

of reliability There is a risk that the new product may generate implications that damage the image of the core/original brand. 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.

Branding Decision

Brand Equity
Brand Equity is the value and strength of the Brand

that decides its worth. It can also be defined as the differential impact of brand knowledge on consumers response to the Brand Marketing.

Brand Equity can be determined by measuring:

Returns to the Share-Holders. Evaluating the Brand Image for various parameters that are

considered significant. Evaluating the Brands earning potential in long run. By evaluating the increased volume of sales created by the brand compared to other brands in the same class. The price premium charged by the brand over non-branded products. From the prices of the shares that an organization commands in the market

Factors Contributing to Brand Equity

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.

 There are two types of brand awareness: Aided awareness- This means that on mentioning the product category, the customers recognize your brand from the lists of brands shown. Top of mind awareness (Immediate brand recall)This means that on mentioning the product category, the first brand that customer recalls from his mind is your brand.

 Brand Associations are not benefits, but are images

and symbols associated with a brand or a brand benefit. For example- The Nike Swoosh, Nokia sound, Film Stars as with Lux, signature tune Ting-ting-tading with Britannia, Blue colour with Pepsi, etc.

 Brand associations are formed on the following basis: Customers contact with the organization and its 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

 Brand loyalty can be defined as relative possibility of

customer shifting to another brand in case there is a change in products features, price or quality. Brand loyalty can be developed through various measures such as

quick service, ensuring quality products, continuous improvement, wide distribution network,

When consumers are brand loyal they love you for being

you, and they will minutely consider any other alternative brand as a replacement.

Brand relationships
FIRM
Brand identity framed by marketers

INTERACTIONS
Brand relationships

CUSTOMERS
Brand image in the mind of customers

Branding process Brand the actual image of the firm in customers minds

A new definition based on Brand relationships: Brand is created in continuously developing brand relationships where the customer forms a differentiating image of a product or service based on all kinds of brand contacts that the customer is exposed to.

A unique set of associations in the minds of customers concerning what a brand stands for and the implied promises the brand makes.

Cont The sum of all tangible & intangible traits.

It represents all internal & external characteristics.
It's anything & everything that influences how brand or a

company is perceived by its target constituencies. It is the best, single marketable investment a company can make.

Components
Personality and character
Hard and Soft attributes Visual representations

Visual representations
A white sari with

a blue border

Round shaped spectacles

and a stick

Company image vs. Brand image

Brand image = the image of a good or service which is formed in the customers mind
Company image = the valued customers, potential customers, lost customers and other groups of people connect with the organization

The two concepts are slightly different

Ex: The French national railway company: Brand image: one can travel easily and safely by train in France Company image: very paternalistic and old fashioned company

Two main different levels of company image

Corporate THE image people have of an organization (more for big companies) Local obviously linked to the Corporate image but can develop its own fame and image
The 2 levels are interrelated and influence each other.

The importance of image

Image communicates expectations Image is a filter influencing perceptions of the performance of the firm Image is a function of expectations and experiences Image has employees an internal impact on

Brand Image Vs Sales

Sales Low Hi Brand Image Low Unrealized Potential Dying Brand Hi Healthy Brand

Vulnerable

Advertising strategy
Type of brand association : Benefit Fun, unpretentious, informal, classless, social
Appropriateness of brand association Promotional advertising Theme advertising Strength of brand association Importance for consumers Consistency Uniqueness of brand association

Image and Identity

Sending Brand identity Signals transmitted Other sources of Inspiration Mimicry Opportunity idealism Media

Receiving

Brand image

Competition And Noise

Contd..
BRAND IMAGE is a unique set of associations in the

minds of customers concerning what a brand stands for and the implied promises the brand makes. BRAND IDENTITY is the strategic goal for the unique set of associations that a brand should stand for. These associations also imply a potential promise to customers. PERCEPTION GAP.

Brand Equity & Image Assessment

Developing image in the good way

What is important for customers is what they experience Bad experiences always result in bad image

Hence, if a company has a poor image, it has to take the correct measures to improve it based on reality:

Company unknown or not well known Action: communication campaign Company known but performing badly Action: internal action in order to improve performance. Communication can be used but at a second level.

Image Power
1 2 3 4 5 6 7 8 9 10

Brand
Coca-Cola Sony Mercedes-Benz Kodak Disney Nestle Toyota McDonalds IBM Pepsi Cola

Share of Mind
1 4 12 5 8 7 6 2 20 3

Esteem
6 1 2 9 5 14 23 85 4 92

Image Power
11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Brand
Rolls Royce Honda Panasonic Levis Kleenex Ford Volkswagen Kelloggs Porsche Polaroid BMW Colgate Seiko Nescafe Canon

Share of Mind
23 9 17 16 13 10 11 14 27 15 32 21 33 19 35

Esteem
3 22 10 8 14 24 26 30 11 44 12 51 15 64 17

Co-Branding
Co branding is the utilization of two or more brands to

name a new product. The ingredient brands help each other to achieve their aims. The overall synchronization between the brand pair and the new product has to be kept in mind. Example of cobranding - Citibank co-branded 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
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 companys 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 co-branding 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.

 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.

Building a Brand

 Quality Quality is a vital ingredient of a good brand. Remember the core benefits the things consumers expect. These must be delivered well, consistently. The branded washing machine that leaks, or the training shoe that often falls apart when wet will never develop brand equity. Research confirms that, statistically, higher quality brands achieve a higher market share and higher profitability that their inferior competitors.

 Positioning Positioning is about the position a brand occupies in a market in the minds of consumers. Strong brands have a clear, often unique position in the target market. Positioning can be achieved through several means, including brand name, image, service standards, product guarantees, packaging and the way in which it is delivered. In fact, successful positioning usually requires a combination of these things.

 Repositioning Repositioning occurs when a brand tries to change its market position to reflect a change in consumers tastes. This is often required when a brand has become tired, perhaps because its original market has matured or has gone into decline. The repositioning of the Lucozade brand from a sweet drink for children to a leading sports drink is one example. Another would be the changing styles of entertainers with aboveaverage longevity such as Kylie Minogue and Cliff Richard.

 Communications Communications also play a key role in building a successful brand. We suggested that brand positioning is essentially about customer perceptions with the objective to build a clearly defined position in the minds of the target audience. All elements of the promotional mix need to be used to develop and sustain customer perceptions. Initially, the challenge is to build awareness, then to develop the brand personality and reinforce the perception.

 First-mover advantage Business strategists often talk about first-mover advantage. In terms of brand development, by first-mover they mean that it is possible for the first successful brand in a market to create a clear positioning in the minds of target customers before the competition enters the market. There is plenty of evidence to support this. Think of some leading consumer product brands like Gillette, Coca Cola and Sellotape that, in many ways, defined the markets they operate in and continue to lead. However, being first into a market does not necessarily guarantee longterm success. Competitors drawn to the high growth and profit potential demonstrated by the market-mover will enter the market and copy the best elements of the leaders brand (a good example is the way that Body Shop developed the ethical personal care market but were soon facing stiff competition from the major high street cosmetics retailers.

 Long-term perspective This leads onto another important factor in brandbuilding: the need to invest in the brand over the longterm. Building customer awareness, communicating the brands message and creating customer loyalty takes time. This means that management must invest in a brand, perhaps at the expense of short-term profitability.

 Internal marketing Finally, management should ensure that the brand is marketed internally as well as externally. By this we mean that the whole business should understand the brand values and positioning. This is particularly important in service businesses where a critical part of the brand value is the type and quality of service that a customer receives. Think of the brands that you value in the restaurant, hotel and retail sectors. It is likely that your favourite brands invest heavily in staff training so that the face-to-face contact that you have with the brand helps secure your loyalty.

Brand launch Process

Consider your customer.
Define your first impression. Create opportunities to show your differentiation

points. Build anticipation. Test drive. Check and double-check.