BRAND MANAGEMENT

COURSE OBJECTIVES:

WE WILL STRIVE TO UNDERSTAND:

▪ WHAT IS A BRAND? DIFFERENCE BETWEEN A PRODUCT & A BRAND.
▪ WHY IS BRAND / BRANDING IMPORTANT?
▪ HOW TO CREATE A BRAND?
▪ BRAND POSITIONING
▪ ESSENTIALS OF STRATEGIC BRAND MANAGEMENT
▪ HOW TO MEASURE THE VALUE OF A BRAND?
WHAT IS A BRAND?

• A ‘brand’ is everything we associate with a product / service.

• A brand has 2 sets of aspects:
• External
• Internal
• External Aspects – Logo, Colour, Name, Tag Line, etc.
• Internal Aspects – brand promise, brand identity, brand mission,

Both the external and internal aspects can equally impact how a brand is
perceived by the consumers.

Teaching Note – discuss internal and external values of brands like Apple, Surf Excel, Bisleri, Dettol, Amazon
Brand vis-à-vis Product

 https://www.youtube.com/watch?v=izujd5D5NiI

 Difference between product & brand

 Soap – LifeBuoy – Clean Hands – Kills 99.99% germs
 Toilet Cleaner – Domex – Cleans Toilets
 Water Purifier – PureIt - Purified Drinking Water

 Product is normally a category – Soap/Water/Biscuit, etc.

One product can have multiple brands in the market

Handwash Agent
 One Brand can have multiple products:
Antiseptic Liquid

Hand Sanitiser

Soap /Hand Wash

Antiseptic Plaster
 Lifebuoy – Product vs Brand

https://www.youtube.com/watch?v=e_2tQekUDy8

 What is the Product – Soap / Hand Wash

 What is the core benefit of the product – Cleaning Hands
 What the Brand stands for:
 Lifebuoy brand identity – the logo, the colour, the packaging.
 Lifebuoy brand promise/assurance – kills 99.9%germs
 Lifebuoy brand mission – alleviate avoidable diseases and premature deaths
caused due to lack of hygiene.
WHY IS BRAND/BRANDING IMPORTANT?

To make a product more than just a product.

• Coca Cola is not just soda.
• Starbucks is more than just coffee.
• Mercedes is not just any luxury car.

These are experiences/ personal statements of the users.

That is the value of a brand.
Consumers don’t go to them for what they sell or serve, but for what they
symbolizes.
Discuss case of CCD- target audience? Message to TG? Creating experience more than selling
coffee
 BRAND PERCEPTION

Brand Perceptions are consciously created by marketers using various

elements like look, feel, colour, communication, image, etc.
Why?
 To build an emotional attachment with the targeted consumers.
 To become the first choice and remain top-of-mind for their customers.
 To make the users feel important / valued for using their brand.
 Ultimately, a brand is something that resides in the minds of consumers.
 Infact, in todays world of social media, a brand is something that one
consumer says to the other.

Explain the underpinning of framing effect – relies on the congnitive bias of humans. We believe what we are told – presentation of
information impacts the way we perceive the information.

Oral B case study- confusing/multiple brand perception / consumers could not relate to one pressing issue
STRATEGIC BRAND MANAGEMENT
PROCESS

Four Steps in Strategic Brand Management (broadly):

 Identify and Establish brand identity and positioning

 Plan and Implement brand marketing programs
 Measure and Interpret brand’s performance
 Grow and Sustain Brand’s Equity
 SBM- Step 1
Brand Identity and Positioning

 Most critical step in Brand Management.

 This step forms the foundation of any brand and stronger the foundation, stronger the rest of
the structure.

Lifebuoy -> logo, colours, tag line, etc.

Iceberg reference – what we see above water is a very miniscule part of it- the main bulk is
under water that gives an iceberg its strength.
Similarly in brand, what is seen is an integral but very small part of the brand . The true substance
is the unseen part that remains below the water-> it comprises of the values, the essence, the
DNA, the purpose of existence of the brand and is known as the core brand identity.
 Lifebuoy external Identity -> logo, red colour, cleans hands, economic, etc
 Lifebuoy Core identity -> kills 99.9% germs and its mission of alleviating all diseases caused by
lack of hygiene.
 How to establish core identity for a
brand

 Brand Positioning -> USP and Superiority vis-à-vis competition

 Positioning helps to understand – ‘Who is the Brand’
 Competition Landscape – Who are the competitors? What is their market
share?
 Define Points of Parity & Points of Differentiation vis-à-vis the competitors.
Brand Identity

Suppose you are a hotel group: how will you work out the core brand
identity & Positioning?
Business What we get from this Chart?
Ginger
• The broad TG we want to target?
IBIS • The competitive landscape
JW Marriott • Who our closest competitor is/are?
Expensive XYZ Inexpensive
• What are their USPs?
• What USP we want to offer to substantially
differentiate our brand to make it more
ITC
Ramada relevant and value-for-money for our TG
Orchid
Taj
Family
Brand Identity

 A set of unique associations in terms of values & beliefs created to establish the right
relationship with the right customers- these do not change with time or situation
‘Who the Brand is as an independent entity’ – Brand DNA
 Gives a brand direction, meaning and uniqueness
Brand Identity -> 2 facets
 Core Identity
 Extended or Visual Identity

 Dettol -> protection from bacteria

 PayTM -> convenience
 Coca-Cola Company -> Coca-Cola, Sprite, Thumbs Up -> each of the brand has a
unique brand identity or DNA
Brand Identity – who owns it

 Core Identity – the DNA of the brand

 Created and owned by the internal marketing team of the organization
 Extended / Visual Identity – the creative representation of the core identity
 mostly handled by creative agencies after multiple rounds of briefing session to establish
clarity in understanding the core
Brand Identity - FEVICOL

https://www.youtube.com/watch?v=jNaWSQeDttE
https://www.youtube.com/watch?v=sjc7pfB6qH8
Brand Personality

 Brand Personality simply means assigning human characteristics to brands to make them
more connected to the target audience.
 It is the intangible traits that are incorporated within the brand
 It helps the brand stay more relevant and consistent with its audience
 Brand Personality examples: Classy, Feminine, Masculine, Rugged, Suave, Funny etc.
 Jennifer Aaker’s 5-dimensional model of Brand Personality
 Sincerity Honest, Trustworthy, down to earth

 Excitement Spirited & Daring, Youthful, Imaginative, Innovative

 Competence Reliable, Intelligent, Successful, Competent

 Sophistication Classy, Charming, Elegant, Premium

 Ruggedness Outdoorsy, Tough, Masculine,

Brand Identity-David Aaker’s Model

 Important and simple framework.

 Brand Identity is built around 4 perspectives:
 Brand as a Product
 Brand as an Organization
 Brand as a person
 Brand as a symbol
Brand Identity – David Aaker’s Model

 Perspective One – Brand as a Product

 Identity creation is from the product itself
 Product attributes directly related to the purchase or use of a product can
provide functional and emotional benefits to customers
 Goal is to link the brand to the product category – recall the brand when the
category is mentioned.
 Eg. Xerox, Bisleri, Surf,
Brand Identity – David Aaker’s Model

 Perspective Two – Brand as an organization

 Focus is on the Company or Organization attributes and not on the
product
 Organizaitional attirubutes such as Local or global, Trustworthiness,
transparency, CSR, innovativeness, etc are considered
 So these attributes are consciously incorporated in the branding
process
 Eg., TATA Group, Reliance Industries, Walt Disney, etc.
Brand Identity- David Aaker’s Model

 Perspective Three – Brand as a Person

 Infuse human traits to a brand – Brand Personality
 People relate to similar brand personalities like themselves
 Eg., Singapore Girl of Singapore Airlines, Air India Maharaja, KFC, McD, etc

 Perspective Four – Brand as a Symbol

 Symbols/Metaphors personify a brand
 Eg., Nike Swoosh, McDonald’s Golden Arch, Rin Lightening Bolt, etc.
 It becomes easier to recall at a glance
Brand Identity- David Aaker’s Model
Brand Identity- Kapferer’s Brand
Identity Prism

 It is a detailed multidimensional approach to developing a brand identity that

resonates with the target audience.
 Brand Identity vs Brand Image
 Brand Identity -> developed by the source/ company
 Brand Image -> Customer Perception of what the brand is
 Brand Identity -> Encoded by the company
 Brand Image -> Code Received and Decoded by the customer.
 Aaker’s Model – simple four perspectives
 Kapferer’s Prism – lot more technical, detailed & multidimensional.
 Kapferer’s Brand Identity Prism
Picture of Sender
External impression on consumer

Internal Impression on Consumer

Externalization

Internalization
Relationship

Friendly, Distant, Rallying Cry =

Culture
Culture of the brand/
Formal, Casual,
Motherly
Brand organization, origin,
Essence/Bran Values, beliefs
d Mantra

Picture of Receiver
 Externalization
External impression on consumer

Relationship
Picture of Sender

Picture of Receiver
Kapferer’s Prism - StarBucks

Culture

Internal Impression on Consumer

Internalization
 Externalization
External impression on consumer

Relationship

Motherly, Caring, Friendly

Picture of Sender

Picture of Receiver
Kapferer’s Prism - Facebook

Honest, Trustworthy

Culture

Internal Impression on Consumer

Internalization
 Externalization
External impression on consumer

Relationship

Friendly, Homely,
Caring & Loving
Picture of Sender

Picture of Receiver
Kapferer’s Prism - Facebook

Trustworthy, Honest,
Sincere

Culture

Internal Impression on Consumer

Internalization
Associative Network Model

Exotic
Snacks Status
Symbol
Global
Large Coffee
Brand
Variety

Classy
Expensive Ambience

Very closely linked to the Framing Effect- based on Cognitive Bias

Thanda = Coca Cola
BRAND POSITIONING

‘How and Where I will position or place my brand in the minds of my target customers’
‘How do we want consumers to see our brand?’
‘When they think of our brand – what should they remember?’
‘What associations should come to their mind?’
‘How should they view us vis-à-vis our competitors?’

BRAND POSITIONING IS THE CORE TO BRAND STRATEGY

It is the act of designing, crafting the brands offer and image
Objective – the brand should occupy a very distinct and valued place in the target
customers mind.
 BRAND POSITIONING

As a Brand Strategist, you will have to be very clear about:

 Who is your Target Audience?
 Who are your competitors?
 How the brand is similar to your competitors
 How the brand is different than your competitors?
 BRAND POSITIONING

Step 1 – DEFINING TARGET AUDIENCE

Divide the entire market of actual and potential buyers into various segments
This Process is called Market Segmentation
- It helps us to create groups of customers who have similar needs and behavioural
patterns
- These segments can be done basis demography, behaviour, gender, culture, etc.
- From these segments – you choose your target.

Segmentation and Targeting are most important pre-requisites for positioning

 BRAND POSITIONING

STEP 2 – DEFINE YOUR COMPETITION / SET UP A FRAME OF REFERENCE WHERE YOU

COMPETE.
 Identify other brands targeting the same TG.
 Understand their positioning.
 Understand different levels of competition- primary and secondary
 Primary Competitors – Brands in the same/similar product category
 Secondary Competitors – Brands offering similar alternate / psychosocial benefits
Eg. Luxury watch vs a Luxury Care or Luxury Vacation
Movie vs a Standup Comedy vs a HomeTheatre
 BRAND POSITIONING

 Two important questions to answer:

 How is your brand similar to its competitors Points of Parity
 How is your brand different from its competitors Points of Difference

Points of Parity: Minimum attributes a brand must have to make it

eligible to compete with similar players in the eyes of a consumer.
 Category Points of Parity Banks, Parlours, Cars
 Competitive Points of Parity McDonald’s, Volvo,
 Points of Difference: Refers to attributes of a brand that help it
stand out from a sea of similar brands in the eyes of consumer
 Customers strongly associate these attributes to with the brand.
 Two types of Points of Difference:
 Functional Consideration Micromax 30 day battery
Smartphones backup

 Imagery Related Consideration Amul Girl No relation to the

brand’s functional
features or attributes
 Rules for establishing PODs that successfully resonates with customers:
 They should be appealing and relevant to the customer
 The Customer should be able to believe that the brand can deliver on its promise.
 BRAND POSITIONING STATEMENT

Brand Positioning Statement is an internal one-to-two sentence declaration that

communicates the brand’s values in comparision to its competitors.
Most followed format for Brand Positioning Statement:

‘To (target customers), (brand

name), the brand of (frame of
reference) that (points of
difference benefit) because
(reason why)
 BRAND POSITIONING STATEMENT

BRAND – PEPSICO’S GATORADE

Target Customer Athletes of all ages, performance levels who enjoys competing in sports
Brand Name Gatorade
Frame of Reference/ Sports drinks for body replenishment and for quenching thirst
Competitive
Framework
POD benefit Replenishes the body and quenches thirst better than all competitors
to enable you to achieve your best
Reason why 1. Gatorades Unique Formula
2. It is used and endorsed by most major sports men and women be it
any sport
 Brand Positioning Statement of
Pepsico’s GATORADE

‘To (athletes of all ages and performance level who enjoys

competing in sports),
‘To (target customers),
(brand name), the brand of (GATORADE), is the brand of (sports drinks for body
(frame of reference) that
(points of difference benefit) replenishment and for quenching thirst) that (replenishes the
because (reason why) body and quenches thirst better than competitors to enable
you to achieve your best) because (of Gatorade’s unique
formula and this brand is used and endorsed by most major
sports professionals including Olympic Gold medalist P V Sindhu
 Brand Re-Positioning

Brand Repositioning is done when any of the following are redefined for a brand:
 Target Customer - HORLICKS, SAFFOLA
 Frame of Reference - ZOMATO
 Points of Parity – PAYTM (Category POP), AMAZON (competitive POP)
 Points of Difference – Micromax Promise (functional), Imagery (Amul Girl)

Important-
If you redefine the Core Identity of a brand – then that becomes a Re-Branding and not Re-
Positioning, although it will eventually need to be re-positioned but that’s a totally different
construct.
 BRAND RE-POSITIONING – WHY?

Reasons that necessitate a Brand Re-Positioning:

 Markets change
 Perceptions Change
 Competitive Landscape Change

 Eg. Saffola
 Initial Positioning -> good for heart patients -> restricted use
 Re-positioning -> prevention is better than medicine -> promoted it as heart healthy for any age.
Perception change
 BRAND REPOSITIONING
VS
PRODUCT REPOSITIONING
Laddering : Fairness Cream

Values Self Esteem Sense of

Achievement

Emotional / Feel Good Get Noticed Compliments Look Beautiful

Brand
Psychosocial about Self

Functional Fair Skin Soft for Skin Smells Good

Product

Product Creamy Fragrant Multi-Vitamin Whitening

Attributes Agents

Fair & Lovely Old ad Ponds White Beauty

Fair & Lovely 2017 Olay Fairness Cream
 BRAND COMMUNICATION

 Important points to answer before crafting an effective brand communication

 What is the current level of awareness /knowledge among target customers?
 What is the desired level of brand knowledge you want to create? How should the brand stand
out? Which communication media or channels can be used ?
 What should your communication plan be to take your brand from Current to Desired level of brand
knowledge among customers?
Six universal outcomes of any effective communication campaign:

Exposure Comprehension Plan to Act

Attention Respond Actually

Positively Act/Impact
/Yeilding Behaviour
Communication Helps Brand
Catchy Commercial – Association
Channels jingle etc Thanda = Coca
Cola
TV & Radio Advertising
Technical Vs Creative aspect

Logo & Brand Name Visibility

Simple Message / Clean Design Integrated

Digital Advertising Brand
Call to Action Communi
cation
Trial & Error Strategy

Small Window - ideal for reinforcing

Outdoors / OOH
existing brands

Keep message simple – easier to spread

Buzz Mktg / PR
Ensure to use the key elements of brand
Direct Mktg., Email
Mktg., Events, etc
 Brand Communication Strategy

 Six Main Criteria to measure effectiveness of a well planned brand communication strategy:

Coverage Different platforms to reach different TG –minimize overlap

Contribution Purpose of campaign – Create awareness / build new

associations, strengthens existing strong brand
Commonality Consistency of brand message across communication tools

Each tool should complement the other to communicate

Complementarity
different aspects of the brand

Versatility Effectiveness of brand message across different sections of TG

Cost Most cost efficiently effective plan

 BRAND AWARENESS

 Goal of Brand Communication Strategy -> Create awareness among target audience
 Brand Awareness measures two things:
 Brand Recognition -> how easily can a customer recognize your brand
 Brand Recall -> How fast customers can recall your brand
 BRAND AWARENESS

Brand Recognition

Brand Recall:
 BRAND IMAGE

Brand Identity vs Brand Image

Core Identity, Visual Identities, Personality, Tone What customer sees and perceives

Customer Driven
Brand Team Driven

Brand Image Highly Influenced by various external factors

BRAND IMAGE - DIMENSIONS
User Profile- Women, Older People, etc

Psychographic – Adventurous, Cult, etc

Brand Associations
Brand Personality- Feminine, Rugged

Heritage Based – Pepsi with Cricket, Lux

with Filmfare

Brand Quality

Brand Judgement Brand Credibility

Brand Consideration

Brand Feelings Brand Superiority

 Warmth

Fun

Brand Feelings Excitement

Security

Social Approval

Self-Respect
 BRAND EQUITY

Brand Equity measures the value added to a branded product as opposed to a

generic unbranded product.

BRAND EQUITY

Financials Based Customer Based

also known as Brand Value

Brand Valuations done on

principles of net present value Customer Centric
of brands future cash flow Approach
 Customer Based Brand Equity (CBBE)

Formal Definition of CBBE:

‘the differential effect that brand knowledge has on consumer response to the marketing
of that brand’
Users of Brands with Higher CBBE -> willing to adjust to price increases and try out new
extensions

Why measure CBBE?

 Helps understand the effectiveness of the brand communication strategies in boosting
brand awareness and brand image among the TG. Eg. F&L
 Gives the brand team direction for the brands future. Eg. Volvo
 How do we create Brand Equity?

Brand Equity Increase in Brand Awareness & Positive Brand Image

Strong favourable unique associations related to the brand

Brand Awareness

Brand Recognition Brand Recall

Brand Equity Measure - Models

AIDA Model
Purchase Funnel
Awareness
Awareness

Interest Consideration

Desire Preference

Purchase
Action

Maruti Suzuki – the lines of the purchase funnel

almost ran parallel i.e every person aware of the
brand also bought the brand
Brand Equity Measure – CBBE Model
by Kevin Lane Keller

Building a Strong Brand – 4 Steps

What about you and me? Establishes an intense and loyal relationship

How do I feel about you? Evokes response - This relates to the kind of
response the brand seeks to achieve

Establishes Meaning – helps customers link

What are you? brand with tangible and intangible attributes

Establishes the identity- helps customers

Who are you? associate it with particular category or need
 CBBE Model

CBBE Model
Customers personal opinion of a
Depth of the psychological bond between the brand
brand formed basis information
and its user and the action that customers take because of this bond
from performance and imagery
Mainly – Quality, Credibility, Resonance
Consideration & Superiority
Six types of feelings associated
High Quality Product with a brand
/ Service is a must

Brand Performance attributes

Primary Ingredients
Performance Imagery Intangible Image related association with a brand
Reliability

Effectiveness of Service
Salience High recognition, top-of-mind
Style & Design

Price
Categories of Brand
Resonance

Behavioural Loyalty

Attitudinal attachment

Sense of Community

Active Engagement
CBBE - 5 Major Principles of Brand Building

Customers are the foundation to your Every action on the brand is reflected in the
brand way customers respond to it.

Don’t take shortcuts Being consistent and persistent is the key

Have both logical and emotional appeal to

Brands should have duality –
customers

The Brand should have richness – offer

Don’t try to score points on every aspect of
different ways to customers to
the pyramid- focus on 1-2 aspects
connect with the brand.

All brand related activity should answer the

Brand Resonance provides focus question to what extent it is affecting brand
loyalty
 BRAND MANAGEMENT FRAMEWORK

Company Centric FINANCIALS

(Actuals)
Feedback loop (on basis of brand tracking)

“Create”/”Recreate”
BRAND IDENTITY “Measure” Customer Centric
(Perceptions)

BRAND
AWARENESS

BRAND BRAND
PERSONALITY COMMUNICATION Customer Based
Brand Equity

BRAND IMAGE

BRAND POSITIONING BRAND REPORT

CARD

BRAND VALUE
 BRAND ARCHITECTURE

Brand architecture is the structure of brands within an organizational

entity.
Brand architecture is defined as the logical, strategic and relational
structure for all brands in the portfolio.

The firm’s brand architecture strategy helps marketers determine

which products and services to introduce, and which brand names,
logos, symbols, and other brand elements to apply to new and
existing products.
 BRAND ARCHITECTURE

The role of brand architecture is twofold:

 To clarify brand awareness: Improve consumer understanding and
communicate similarity and differences between individual products and
services.
 To improve brand image: Maximize transfer of equity between the brand and
individual products and services to improve trial and repeat purchase. Eg.
Fevicol – carpenter and stationery range
 BRAND ARCHITECTURE

Developing a brand architecture strategy requires three key steps:

 defining the potential of a brand in terms of its “market footprint,”
 identifying the product and service extensions that will allow the
brand to achieve that potential, and
 specifying the brand elements and positioning associated with the
specific products and services for the brand.
 BRAND ARCHITECTURE

Defining Brand Potential:

 Design and articulate Brand Vision – a brand’s long term potential
 Define Brand Boundaries
 Design Brand Positioning
BRAND ARCHITECTURE
BRAND – PRODUCT MIX

PRODUCTS

1 2 3 4
BRANDS

The number and nature of unique and distinctive BRAND ELEMENTS

applied to different products sold by the firm
BRAND ARCHITECTURE
BRAND – PRODUCT MIX

BRAND – PRODUCT PRODUCT - BRAND

RELATIONSHIPS (ROWS) RELATIONSHIP (COLUMNS)
 BRAND ARCHITECTURE
BRAND – PRODUCT MIX
PRODUCT LINE:
A group of products in a particular product category that are closely
related
PRODUCTS
1 2 3 4
HUL SOAPS
BRANDS

D
 BRAND ARCHITECTURE
BRAND – PRODUCT MIX
BRAND LINE:
 All
products, original as well as line and category extensions, sold under a
particular brand name
PRODUCTS
1 2 3 4
BRANDS

SOAP SHAMPOO MOISTURISER DEO

A

C
BRAND ARCHITECTURE

BRAND MIX (BRAND ASSORTMENT)

SET OF ALL BRAND LINES MADE AVAILABLE BY A PARTICULAR FIRM

TO ALL ITS CUSTOMERS

PRODUCT MIX (PRODUCT ASSORTMENTS)

SET OF ALL PRODUCT LINES AND ITEMS MADE AVAILABLE BY A

PARTICULAR FIRM TO ALL ITS CUSTOMERS
BRAND ARCHITECTURE

BREADTH OF PRODUCT MIX

Aggregate Market
Category Factors Environment Factors
Factors
BRAND ARCHITECTURE

AGGREGATE MARKET FACTORS

Market Size Market Growth Stage in Product

Life Cycle

Sales Cyclicity Seasonality Profits

BRAND ARCHITECTURE

CATEGORY FACTORS

Threat of new Bargaining Power Bargaining Power

entrants of Buyers of Suppliers

Current Category Pressure from Category

Rivalry substitutes Capacity
BRAND ARCHITECTURE

ENVIRONMENT FACTORS

Technological Political Economic

Regulatory Social
 BRAND ARCHITECTURE

DEPTH OF PRODUCT MIX

,
The number and nature of different brands sold by a
firm under each product category
BRAND PORTFOLIO

To pursue different market segments,

Maximise market coverage and
different distribution channels and
minimize brand overlap
different geographical locations
BRAND ARCHITECTURE

 DESIGNING A BRAND PORTFOLIO

 TWO BASIC PRINCIPLES
 Maximice Market Coverage – so that no potential customers are left
out or ignored
 Demography – Horlicks for Women,
 Geography – McDonald’s product customization, Vernacular TV channels
 Psychography – Eco-friendly range of products,
 Behavioural – Tanishq wedding jewelry,
 Minimise Brand Overlap or Cannibalisation – prevent brands from
competing amongst themselves to gain the same customer attention
and approval.
BRAND ARCHITECTURE

 BRAND ROLES IN THE PORTFOLIO

 FLANKERS
 CASH COWS
 LOW END ENTRY LEVEL
 HIGH-END PRESTIGE BRANDS
BRAND ARCHITECTURE

 FLANKER BRANDS
 A flanker brand is designed to compete in a category or product line without
damaging the existing main brand’s equity or market share by targeting a
different set of customers.
 Also known as fighter brands. Lower priced, lower quality than the
main flagship brand.
 Leads to some amount of cannibalization.
 Many times a flanker brand is discontinued, after it forces the cheaper
competitors out of the market.
BRAND ARCHITECTURE

 BENEFITS OF FLANKER BRANDS

 Engage a different set of consumers – expand market coverage
 Expand into new geographic markets
 Help fight new market entry from competitors
 Expand and dominate shelf space and retailer dependence
 Diversify revenue mix and insulate from macroeconomic shocks
 Maximise lifetime customer value with a product ladder.
BRAND ARCHITECTURE

 RISKS OF FLANKER BRANDS

 Flankers become more attractive and chip away sales from main flagship
brands
 Too costly for the organization – multiple failures
 Does not align to the organizational values
BRAND ARCHITECTURE

 EXAMPLES OF FLANKER BRANDS

BRAND ARCHITECTURE

 CASH-COW BRANDS
 A cash cow is a company or business unit in a mature but slow-growth
industry.
 Cash cows have a large share of the market and require little
investment.
 Flagship Brand of an organization
BRAND ARCHITECTURE

 CASH-COW EXAMPLES
BRAND ARCHITECTURE

 LOW-END ENTRY-LEVEL BRANDS

 Line extensions or brand variants in a product category at
lower price point and quality
 Leverage associations to a stronger brand in the portfolio
while distinguishing in the price and quality dimensions.
 Not very profitable

Attract consumers to the Brand Franchise

'Trade Up’ users to the higher priced brands

BRAND ARCHITECTURE

 LOW-END ENTRY-LEVEL BRAND EXAMPLES

BRAND ARCHITECTURE

 HIGH-END PRESTIGE BRANDS

 These brands add prestige and credibility to the entire brand portfolio
 Creates a ‘Halo’ Effect for all other brands in the portfolio
BRAND ARCHITECTURE
TYPES OF BRAND ARCHITECTURE

3 main types of brand architecture

Monolithic or Branded House
Corporate or Master Brand is used to endorse all products and services
offered by the company
Endorsed Brand
All sub-brands are linked to the corporate or master brand either through
verbal or visual endorsement.
House of Brands
Each sub-brand is offered as individual brand targeted to its target
customers. Corporate brand merely functions as a holding company
BRAND ARCHITECTURE
TYPES OF BRAND ARCHITECTURE

Monolithic or Branded House

BRAND ARCHITECTURE
TYPES OF BRAND ARCHITECTURE

Endorsed Brand
BRAND ARCHITECTURE
TYPES OF BRAND ARCHITECTURE

House of Brands
BRAND EXTENSIONS

Introduction of new products as a line or category expansion of an existing

strong Brand
Part of a firm’s product strategy to create, maintain and enhance brand
equity.
A measure to achieve full potential of a brand.
BRAND EXTENSIONS

Sources of growth for a firm

Ansoff’s Growth Matrix

BRAND EXTENSIONS

McDonald’s Case Study:

 Launched in 1955
 Till 2005, aggressively followed the market development strategy and
launched outlets in every corner of the world.
 120 countries
 38000 outlets
 Last decade it is facing following challenges:
 Market Saturation
 Global Health Concerns
 Economy Slump
 BRAND EXTENSIONS

Multiple New Strategy Adoption:

Market Penetration Strategy
 New Corporate Motto: “Better, Not Bigger”
 Generate greater returns from existing outlets
 24-hour service in many selected high traffic outlets
 BRAND EXTENSIONS

Product Development Strategy:

Change in product menu options –
 Breakfast, snack options, smoothies, etc.
 Adaptation to region and culture specific food choices
 Inclusion of healthy options and salads to attract the
’health conscious’ consumers
Diversification:
 McCafe – the gourmet coffee shop
 Golden Arch Hotels – trial phase
BRAND EXTENSIONS

Maximum
Profitability
 BRAND EXTENSIONS

A firm has 3 choices for branding a new product launch:

 It can develop a new brand, individually chosen for the new product.
 It can apply one of its existing brands.
 It can use a combination of a new brand and an existing brand
BRAND EXTENSIONS

A brand extension occurs when a firm uses an established brand name to

introduce a new product
 Sub-Brand - when a new brand is combined with an existing brand
 Parent brand- the existing brand that gives birth to a brand extension
 Family Brand - if the parent brand is already associated with multiple
products through brand extensions
BRAND EXTENSIONS

 Two Categories of Brand Extensions:

 Line Extension –
 Same category as parent brand
 Targets a new market segment
 Eg. a different flavor or ingredient variety, a different form or size, or a
different application for the brand
 Category Extension:
 Different category than parent brand
 Eg, Nivea, Dove, Nike, etc
BRAND EXTENSIONS

New Brand Launches are:

 Risky with high rate of failure
 Very Expensive Proposition

Advantages of Brand Extensions:

 Facilitate New-Product Acceptance
 Improved Brand Image – trust and equity rub off from the parent brand
 Reduced Risk perception by consumers – quality and credibility assurance
 Increases probability of trial and distribution
 Increases efficiency of promotional expenditures – each expense can focus on only
building the new product
BRAND EXTENSIONS

Advantages of Brand Extensions (cont.):

 Reduce Costs of Introductory and Follow-Up Marketing Programs – cost efficient to
promote family brands
 Avoid Cost of Developing a New Brand – brand name, logo, symbols, packages, etc
 Reduced production cost of packaging and labelling, etc. Also builds a stronger brand-
look synergy
 Satisfies variety-seeking consumers – prevents brand-switching.

 Provides Feedback Benefits to the Parent Brand:

 Clarify Brand Meaning – enlarge the scope of the brand – eg. Kelloggs- Healthy Snacking
BRAND EXTENSIONS

Advantages of Brand Extensions (cont.):

 Enhance the Parent Brand Image
 improved perception of expertise, trustworthiness and likeability. Eg. Nike – Peak
Performance in all sports.
 Increase Market Coverage for Parent Brand – more trials for new variety of line
extension
 Creates ‘News’ and keeps the Parent Brand in circulation.
 Revitalizes the Brand – brand extensions help create renewed interest in a
stagnant or established brand.
 Serves as basis for more future brand extensions
BRAND EXTENSIONS

Disadvantages of Brand Extensions:

 Create confusion and frustration among consumers
 lead to non-purchase
 Stick to the known variety or option
 Become frustrated at non-availability of newly launched variety at retailers due to
lack of space
 Can encounter retail resistance – too many SKUs create space issue – especially
with lot of private label and own brand prevalence today.
 Can fail and hurt parent brand image. eg. GM’s Cadillac Cimarron – the small
luxury car.
 Can succeed but cannibalize sales of parent brand. eg. most FMCG brands
with multiple variants as extension. Eg., Fevikwik
BRAND EXTENSIONS

Disadvantages of Brand Extensions:

 Can succeed but diminish identification with any one category. e.g. ITC vs Parle or
Britannia,
 Can succeed but hurt the Image of the parent brand. e.g.,
 Can dilute brand meaning. e.g. over availability of luxury brands. e.g, luxury or
premium brands like Gucci,
 Can cause the company to forgo the chance to develop a new brand. e. g. Kindle
from Amazon,
BRAND EXTENSIONS & BRAND EQUITY

Brand Extension’s Ultimate Goal :

 Create own equity in the product category
 Enhance Parent Brand’s equity

 Creating extension equity:

 Generate High brand awareness -> depends on the marketing &
communication strategy
 Establish strong points-of-parity and points-of-differentiation with competitors
and categories-> else becomes a ‘me too’ brand.
 Enhance Parent Brand Equity
 Enhances the ‘expert’ ‘trustworthy’ ‘high-quality’ attributes of the parent brand among
the users by foraying into relevant categories/ extensions. E.g, L’oreal Salons, Kaya Skin
Clinic, etc
BRAND EXTENSIONS & BRAND EQUITY

Vertical Brand Extensions:

 Extends the Brand into
 More premium market segment
 More value conscious segment

Pros & Cons:

 Upward extension can improve brand image-> creates more positive associations. E.g.,
Big Bazaar GenX,
 Can give consumers variety to choose from
 Too many options may confuse and frustrate consumers -> also too low or too high
price points may harm brand perception and equity.
 A downward extension also may cannibalize large chunk of parent brand
 Upward extension mostly enhances parent brand equity as consumers view it as
premium.
BRAND EXTENSIONS & BRAND EQUITY

Evaluate Brand Extension Opportunities:

 Define Actual and Desired Consumer Knowledge about the Brand
 Understand depth and breadth of the parent brand
 Understand the strength, favorability and uniqueness of its association.
 The long term vision of the brand- extensions sometimes change ‘brand meaning’.

 Identify Possible Extension Candidates

 Evaluate parent brand core associations and fit for extension.
BRAND EXTENSIONS & BRAND EQUITY

 Evaluate the Potential of the Extension Candidate

 Consumer Factors/ Perception – create own brand equity and affect positively
parent brand equity. Eg., Colgate Kitchen Meals, Pond’s Toothpaste.
 Corporate & Competitive Factors – actions and reactions. Counterextensions from
competitors can create trouble for parent brand
 Category Factors – the balance between withstanding competitive forces and
satisfying consumer needs. Eg. Amul flavoured dahi
 Design Marketing Programs to Launch Extension
 Choosing Brand Elements
 Designing Optimal Marketing Programs
 Leveraging Secondary Brand Associations
BRAND EXTENSIONS & BRAND EQUITY

 Guidelines and Principles for successful brand extensions:

 Parent brand must have favorable associations and consumers must perceive a fit
between the parent brand and the extension product. E.g. HD Perfumes.
 There are many bases of fit: both product-related and non-product-related
attributes and benefits may influence extension fit. E.g. Timex Watches and Rolex
watches
 Depending on their knowledge of the product categories, consumers may
perceive fit based on technical or manufacturing commonalities, or on surface
considerations such as necessary or situational complementarity. E.g. Honda, Sony,
 High-quality brands stretch farther than average-quality brands, although both
types have boundaries. E.g. Nike formal wear, Surf Excel
BRAND EXTENSIONS & BRAND EQUITY

 Guidelines and Principles for successful brand extensions (cont.):

 A brand that consumers see as prototypical for a product category can be difficult
to extend outside the category. Harpic,
 Concrete product attribute associations like taste or feel tend to be more difficult to
extend than abstract benefit associations like ‘fashionable’, ‘high tech’. E.g.,
Heineken popcorn, Colgate chewing gum, Versace shirts & jackets
 Consumers may transfer associations that are positive in the original product class
but become negative in the extension context. E.g. Dettol disinfectant smell
 Consumers may infer negative associations about an extension, perhaps even
based on other inferred positive associations. E.g., Van Heusen Footwear,
GLOBAL BRANDS
GLOBAL BRANDS

 A Global Brand is the name of a product or service that is recognized in most parts of
the world.
GLOBAL BRANDS

 Characteristics of a Global Brand:

 Available in most countries of the world
 Same brand name, logo and other branding elements core to the
brand
 Same strategic principles, positioning, marketing in all markets
 Marketing mix may vary to adapt to regionalization, eg. region
specific products
 Enjoys high brand awareness in all the global regions
 Comparable brand loyalty across geographies
GLOBAL BRANDS

How Global Brands Create Firm Value – the COMET FRAMEWORK

C - Consumer preference for global brands

O – Organizational Benefits
M – Marketing Program Efficiency
E – Economies of scale & scope
T – Transnational Innovation
GLOBAL BRANDS

CONSUMER PREFERENCE
 Higher Perceived Quality
 A globally known Brand Name is an indicator of higher quality
 A bad quality product can never be available globally
 Perceived higher quality also rationalizes premium pricing

 Higher Prestige
 Global brands are scare and high priced -> thus connoting high prestige to the
users.
 More aspirational and connotes higher prestige.
GLOBAL BRANDS

CONSUMER PREFERENCE
 Global Myth
 Using global brands generates a feeling of being a global citizen,
belonging to the global world, being part of a global family.
 Global brands signify modernity, progress, efficiency, etc
 E.g, Starbucks in China/India -> sense of being a global upscale citizen ->
both countries tea forms part of culture and habit
 Country of Origin
 Expertise associated with place of origin. Eg., engineering -> Germany,
Fashion & Cosmetics -> France
GLOBAL BRANDS

ORGANIZATIONAL BENEFITS:
 Internal Operational Efficiency:
 A single brand across continent -> simplifies internal operations
 E.g. P&G Tide, Vicks, etc.

 Rapid Roll-Out of New Products:

 A single brand name with synched marketing initiatives -> shortens the
entire process of building separate brands
 Efficient and faster brand moves to tackle competition
GLOBAL BRANDS

ORGANIZATIONAL BENEFITS:
 Global Competitive Moves:
 Cross-subsidization -> use cash-flow from one region to fight competitive
actions in another region to maintain balance sheet.
 Counter-parry -> fighting a competition’s attack in one region by launching
an attack on them in another region

 Firm Identity:
 A global brand in the kitty gives the firm a distinct identity.
 HLL changed to Unilever -> create a unified global identity
GLOBAL BRANDS

ORGANIZATIONAL BENEFITS:
 Attracting Best Talent:
 The global presence of an organization with one or more global brands in
its kitty is of great attraction to all best talents.
GLOBAL BRANDS

MARKETING PROGRAM SYNC & SPILLOVER:

 Media Spillover:
 Global Village – people constantly travelling across borders and being
exposed to international campaigns
 Digital Age – spillover of international campaigns

 Pooling marketing resources across countries:

 More effective marketing campaigns even in low budget local markets
GLOBAL BRANDS

MARKETING PROGRAM SYNC & SPILLOVER:

 Leverage Best Marketing and Creative Ideas across globe designed by HQ:
 One strong international campaign – no fragmented communication at local level
GLOBAL BRANDS

MARKETING PROGRAM SYNC & SPILLOVER:

 Leverage successful local marketing campaigns globally:

Originally
campaig
designed by
local office in
Germany

Rolled out globally due

to its huge success
Originally started by
Australia marketing
team
GLOBAL BRANDS

ECONOMIES OF SCALE & SCOPE: Fast Fashion

 Economies of scale Designs and Styles
 Procurement not repeated
 Production
 R&D Vertical integration & tight
Control of entire process
 Marketing & Advertising

Global presence enables them to maintain cost and speed

GLOBAL BRANDS

TRANSNATIONAL INNOVATION:
 Pooling of best minds to innovate:
 Higher Quality product
 Fewer Defects
 Higher customer-satisfaction
 Lesser after sales or returns cost
GLOBAL BRANDS

TRANSNATIONAL INNOVATION:
 Bottom up innovation to spark creativity and counter lack of ideas:
 Successful local product innovation ideas leveraged globally

Launched Initially in Venezuela

Market research showed preference towards

Natural and homeopathic treatments

Later product expanded to all global markets

and is a huge success
GLOBAL BRANDS

ROADBLOCKS TO GLOBAL BRANDING SUCCESS:

 Differences in Marketing Institutions
 Channel of distribution
 Retail Practices
 Media Availability
 Media Costs
 Penetration of cables TV, cellphone, supermarket, etc. vary across
countries.
GLOBAL BRANDS

ROADBLOCKS TO GLOBAL BRANDING SUCCESS:

 Differences in Administrative Procedures
 Local processes may vary in terms of implementation, sanction,
implementation of marketing strategies.
GLOBAL BRAND POSITIONING

Brand Positioning:
 Creating mental maps
 Defining core brand associations
 Identifying PoPs and PoDs.
 Crafting Brand Mantra / Salience.
GLOBAL BRAND POSITIONING

Brand Positioning:
 Is the existing mental map valid in the new market?
 How valuable are the Core Brand Associations?
 How valuable are the PoPs and PoDs?
 Emotional Connect
 Culture /Tradition/Taste
GLOBAL BRAND POSITIONING

Happily changed menu to cater to the mental maps

of customers of new markets – banned beef products
in India, introduced a range of veg items, Introduced
healthier options in Europe

Introduced new campaigns to connect with local

lifestyle and needs “Make Room for Happiness”
replaced “I’m Loving it” campaign in China for the
stressed Chinese workers
GLOBAL BRAND POSITIONING

India
GLOBAL BRAND POSITIONING

Japan
GLOBAL BRAND POSITIONING

Changing
Times

https://youtu.be/6mWZUKbAhi8
GLOBAL BRAND POSITIONING

Started in an Atlanta Pharmacy

Name registered as TradeMark in 1893

1895- the drink became National Phenomenon

1920 - started selling in global markets

1978 – entered restricted markets like China & Soviet Union

Most Recognizable
1988 – Voted ‘Best Known’ & ‘Most Admired’ brand in world
Brand Worldwide
 GLOBAL BRAND POSITIONING

Coca-Cola Branding & Marketing Strategy:

Never Uniform across geography

Separate Flavour

Separate Pricing Strategy

Separate Advertising strategy to gel with

Most Recognizable local customer sentiments
Brand Worldwide
GLOBAL BRAND POSITIONING

Coca-Cola product
look is the only thing
consistent globally
 GLOBAL BRAND POSITIONING

Think Global, Act Local

Coca-Cola Diwali ad in India Coca-Cola specially

designed cans for Chinese NY
 GLOBAL BRAND POSITIONING

1999 – Think Local, Act Local

Everything was made HyperLocalized

Ad-Strategy

Sales & Promotion Strategy

Pricing Strategy
Most Recognizable
Brand Worldwide
Failed Big Time – The Brand became
fragmented
 GLOBAL BRAND POSITIONING

Hybrid Branding Strategy – judicious mix of Global & Local

Coke Atlanta HQ controlls major branding decisions

Global Network of Marketing Executives work at

local levels

Most Recognizable
Brand Worldwide
 GLOBAL BRAND POSITIONING

Coca- Cola Today

400 brands

200 countries

75% revenue outside of USA

Most Recognizable Successfully sells local favourite drinks across countries

Brand Worldwide - ThumsUp & Mazaa in India,
- specific tea infusions in China, etc
DIGITAL BRANDING

What is Digital Branding:

 Branding done using ‘the internet’ across all ‘digital platforms’

Digital Platforms:
 Television
 Website
 Social Media sites – FB, Twitter, Instagram, etc.
 Emails
DIGITAL BRANDING

Digital Revolution:
 Started in the 1990’s with advent of the Internet
 Websites & Emails

Social Revolution:
 Started in the mid 2000’s
 Most Social Media sites

https://youtu.be/98ZD6WUatk8
DIGITAL BRANDING

BIGGEST IMPACT:
DIGITAL CONSUMER

 Ways of consuming branded content

 Has choice – either consume or reject
 Pull over Push
 Ways of interacting with a brand
 Direct relationship with brands
 More personalised attention
DIGITAL BRANDING

CONSUMER EMPOWERMENT:
 Today’s consumers know their worth -> their commercial power and
impact on brands & business
 No more just consumers -> but co-creators of brand & business
 Highly demands personalised offers and differentiated experiences
 Change.Org -> Online petition tool -> extremely powerful and effective
https://youtu.be/1KWe_Rg6Bng
DIGITAL BRANDING

LOSS OF MARKETER CONTROL:

 Multiple channels
 24/7 content
 Program Recording Facilities
 Online Sites –curated contents on sites, customised content as per
consumer need
 Banner Blindness – ignore adverts
 Paid Online Search – least click through rate than Organic Search results
DIGITAL BRANDING

MARKETING CHALLENGES:
 Where to advertise?
 What’s the best ROI for marketing investment?
 How to create interesting messages that people want to watch or listen
to?
DIGITAL BRANDING
DIGITAL BRANDING
DIGITAL BRANDING
GLOBAL BRANDS

ROADBLOCKS TO GLOBAL BRANDING SUCCESS:

 Differences in Consumer Needs, Wants, and Usage Patterns for
Products
 Product format – look-feel, consistency, size, etc.
 Product Usage – frequency, reason, style,
 Product Need – specific to culture, society, etc.
GLOBAL BRANDS

ROADBLOCKS TO GLOBAL BRANDING SUCCESS:

 Differencesin Consumer Response to Branding elements like Name,
Logo, Colour, Brand Ambassador, etc.
 May not resonate with local culture
 May be repulsive to local taste
 May have ambiguous meaning or implication – linguistic check is a
must.

Chinese Eat your fingers off

GLOBAL BRANDS

ROADBLOCKS TO GLOBAL BRANDING SUCCESS:

 Differences in Consumer Response to Marketing Mix elements
 Sensitivity to Offers & Discounts can vary
 Bold Brash advertisements can be a turn off – like in Japan
 Differences in Price sensitivity across geography

All these can impact consumer behaviour and decision making

GLOBAL BRANDS

ROADBLOCKS TO GLOBAL BRANDING SUCCESS:

 Differencesin Brand and Product Development and the
Competitive Environment
 Product Category may be at different life stage of development in
different countries
 Perceptions of brands may differ across geographies
GLOBAL BRANDS

ROADBLOCKS TO GLOBAL BRANDING SUCCESS:

 Differences in Legal Environment
 Advertisements of prescription drugs banned on TV in Canada
 Sweden prohibited advertising to children
 Advertisements of legal firms, lawyers, doctors is prohibited in many
countries.
DIGITAL BRANDING
DIGITAL BRANDING
DIGITAL BRANDING
DIGITAL BRANDING
DIGITAL BRANDING

BRAND ADVOCACY:
 Happy Satisfied Customers -> Brand Advocates
 They endorse the brand and circulates through Social Media
 Creates Positive ‘Word of Mouth’ Publicity
 They are not the ‘paid influencers’- but genuine consumers with large
online followers
 They also protect the brand from ‘online trolls’
 DIGITAL BRANDING
Paid Owned Earned Media

P.O.E.M FRAMEWORK

Digital Paid Media: Brand Digital Earned Media:

pays for channel access Messages created and
Paid Search, Mobile Ads, distributed by third-party
Web banners, Rating site reviews, editorials,
Social Media ads (FB, third-party blogs & vlogs, etc.
Insta, etc)

Digital Owned Media:

Company & Brand has
control
Website, Social Media
Page, Branded Blog,
Podcasts, etc.
DIGITAL BRANDING
Content Marketing

 Main Focus -> ‘Valuable & Relevant Content’

‘Content Marketing is a marketing technique of creating and distributing
relevant and valuable content to attract, acquire and engage a clearly
defined and understood target audience – with the objective of driving
profitable customer actions’

Sales Model Engagement Model

 DIGITAL BRANDING
Content Marketing

 3 steps of Content Marketing:

 Create Great Content – publishers, content creation agencies
 Distribution of this Great Content – Facebook & Outbrain
 Measurement of the effectiveness of the content & distribution – biggest challenge.

Content is at the core of a brand’s communication strategy

82% consumers are open to receiving content from brands if they are valuable.
DIGITAL BRANDING
Content Marketing

 How to create relevant valuable content:

 Content must be based on deep consumer insights
 Content should be focused on consumer, not the brand
 Content should be helpful, not just hype
 Content should be audience co-created for greater amplification

Valuable Content – Gatorade https://youtu.be/TfYrPdC9JM0

Consumer Co-Created - GoPro https://youtu.be/vr0qNXmkUJ8
DIGITAL BRANDING
Content Marketing

 Key Technology Trends impacting content marketing

 Visual Content
 Live Video Streaming
 Content Personalization
 Use of Artificial Intelligence & Augmented Realities
 Automated Software
DIGITAL BRANDING
Content Marketing

Content Distribution Planning - plays a vital role in the

effectiveness of Content Marketing
 Organic Distribution
 Paid Distribution

It’s also important to choose the right channel to distribute

 Consumer Related – Facebook, Instagram, Pinetrest
 Corporate Related – Twitter
 Social Impact – Facebook & Twitter