53 - Brand Building FULL
53 - Brand Building FULL
53 - Brand Building FULL
Building
Brand Building: Unit 1
Brand
A name, a term, a symbol or a design or a combination of these, that is intended to identify the
products or services of one business or group of businesses and to differentiate them from those
of competitors Examples:Volvo - Safety
● The sum of the expectations that a customer or stakeholder has when purchasing a
product or dealing with an organization
● A product, but one that adds other dimensions that differentiate it in some way from other
products designed to satisfy the same need
● A brand is an expectation or a promise waiting to be fulfilled. Brands are shorthand for
trust
● The brand is a piece of real estate you occupy in a person’s mind, and the related
impressions it leaves behind
● Brand is a specific term and includes a name, symbol, sign, or design given to a product
for easy identification. It provides a distinct identity to a product.
Monuments such as the Taj Mahal or Eiffel tower need no branding as they are one of a kind.
● What Do These Things Have In Common?
BRAND
❖ Branding Evolution
❖ Slowly names of produces began to get replaced by names of places, famous personalities,
and even animals.
Bakers' COCOA
Edison
Phonograph
● PLACES
Diamond Dyes
Gold Dust
● ARTIFICIAL NAMES
Kodak
Uneeda Biscuits
● It was done to strengthen the association between the product and the brand
so that it was easy to remember and distinguish the product from its same
category
So Brand is…
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● The sum of the expectations that a customer or stakeholder has when purchasing a
product or dealing with an organization.
● A product, but one that adds other dimensions that differentiate it in some way from other
products designed to satisfy the same need.
● A brand is an expectation or a promise waiting to be fulfilled. Brands are shorthand for
trust.
● A brand is a specific term and includes a name, symbol, sign, or design given to a product
for easy identification. It provides a distinct identity to a product.
● Often confusion exists around the concept of brand & products ● Are they the same or
different?
● The main essence of this debate is to increase marketing effectiveness.
● It could lead to faulty decision
● A product is anything that can be offered to the market to satisfy a want or need.
● The concept of the product is broad it could be anything like salt & pepper, toothpaste,
insurance, person, etc.
● According to Philip Kotler, well-regarded marketing academic, a product is anything that
can be offered to a market for Attention, Acquisition, Use, or Consumption that might
satisfy a need or want. Thus, a product may be
Products on 3 levels -
● The product must satisfy the consumer's ‘minimal’ expectation. ● There are a set of
attributes that are expected.
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● The pen should be the right price, give smooth writing, and be leakproof ● At this level
the consumer angle the picture.
● This doesn’t lead to the scope of ending the expected product by the buyer. ● The product
can be improved by providing the consumer with more than expected ● Customers get
used as to what to expect because of industry practices.
Attributes:
Benefits :
Culture:
Personality:
● The brand can project a certain personality. Mercedes may suggest a no-nonsense boss
(person), a reigning lion (animal)-Royal, or an austere palace (object)- modest.
● A. Sincerity (down-to-earth, honest, wholesome, and cheerful)
B. Excitement (daring, spirited, imaginative, up-to-date)
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C. Competence (reliable, intelligent, successful)
D. Sophistication (Upper Class, Charming)
E. Ruggedness (Outdoorsy, tough)
User:
● The brand suggests the kind of consumer who buys or uses the product
● We would expect to see a 40-45-year-old top executive behind the wheel of a Mercedes,
not a 20-year-old secretary.
Brand Product
Retail Store
● Akbarallys department store, ● Department store, specialty
Person ● ●
Narendra Modi, Amitabh A political figure, entertainer, or
Bachchan, or Michael professional athlete
Jordan, Sachin Tendulkar
Organization
● CRY, Khadi, Rolling stone ● A non-profit organization, trade
organization or arts group
Place
● Mumbai, Gujarat tourism, ● A city, state, or country
Australia
Idea
● Lokpal bill, Go Green ● A political or social cause
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❖ Difference between Brand & Product
Brand Product
● ●
In essence, the brand is a piece of real A product is a produced item always
estate you occupy in a person’s mind, - possessing these characteristics:
and the related impressions it leaves - Tangibility
behind Attributes and Features
●
A product which is distinct from others in ●
its category Something available to the consumer
undistinguished from others in the category
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● ●
The psychological response to a brand can The physiological response to a product is
be as important as the physiological important
response
❖ Summing Up -
❖ Importance of branding
One of the truths of modern business is that there is almost nothing that your competitors can't
duplicate in a matter of weeks or months.
If you have a great idea, you can be certain that somebody will copy it before long. And not only
will they follow your lead, but they may also be able to do a better job or sell the product or
service at a lower price. The question then becomes, "What competitive edge do I have to offer
that cannot be copied by anyone else?"
Creating a strong brand identity will build mind share — one of the strongest competitive
advantages imaginable.
As a result, customers will think of your business first when they think of your product category.
For example, when your child wants a hamburger, he will often say he wants to go to
McDonald’s. The reason behind these strong brand-product associations is that these companies
have built rock solid brand identities.
"A brand is the one thing that you can own that nobody can take away from you" Everything
else, they can steal. They can steal your trade secrets eventually; your patents will expire. Your
physical plant will wear out. Technology will change. But your brand can go on and live. It
creates a lasting value above and beyond all the other elements of your business." E.g., Xerox
still exists. They make printers, projectors, and scanners.
"The value of that brand is huge compared to those actual physical assets. “The importance and
value of branding becomes apparent when an entrepreneur wants to sell his or her company or
take it to Wall Street for a public offering or other infusion of capital.
It is often the brand that a business owner must sell in such cases
❖ Process of branding
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Branding goes beyond the execution of advertising and logos, touching practically every area of
the organization- from internal employee communications and operational facilities to
dealerships, the web as well as the product and services that are being sold.
There are many instances where brand names become so recognized that they become a generic
name for that type of product e.g. Colgate for toothpaste, Dettol for antiseptic or Cadbury for
Chocolates and many more
Power brands are successful because they create consumer enthusiasm. Use it to drive ongoing
purchase. The key to brand enthusiasm is far more than the product function.
It’s to build a connection with customers. Brands need vivid insight into what consumers’ care
about, beyond demographic facts and psychographic profiles — their concerns, values, and
emotional rewards
Consumers are human beings. They know brands, express about brands, think about brands, feel
about brands, com pare brands, choose brands, recommend brands, reject brands, buy brands,
and do not buy brands through a combination of
All these are not just a matter of semantic, these are spe cific manageable concepts, born and
brought up in the minds and hearts of the consumers, linked to each other in many ways. These,
if
'added' to a product, lead to the creation of a brand. These form part of the suggested process of
Branding, and together lead to Brand Relationship, the output of the process of Branding
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BRAND
PRODUCT / SERVICE
Brand Relationship is the ultimate achievement-need of branding. All other aspects (e.g. Brand
Positioning) might happen but if this does not happen, the job is not complete.
Brand Relationship happens if 'image' and 'attitude' for a brand exist. It is the resultant effect of
these two aspects of a brand.
Brand Attitude defines what the brand thinks about the consumer, as per the consumer. A brand
may have an 'attitude' on one or more aspects. Nike represents more than shoes, it signifies the
healthy, athletic, and independent lifestyle
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Brand Image includes two aspects of a brand—its associations and its personality. A brand may
have an image on one or more aspects.
Brand Associations include all that is linked up in memory about the brand. It could be specific
to attributes, features, benefits or looks of the brand. A brand may have a range of associations.
But the one association that stands out in memory and differentiates it becomes the 'position' of
the brand.
For a brand to have a brand relationship, it should have an 'image'. And for 'image' a brand
should have 'association'. If among its 'associations', a brand has a 'position' it is of great
advantage. However, if a brand does not have a 'brand position' it does not mean that it would not
have a brand image or brand relationship. In other words, 'brand position' is not a sufficient
condition for a brand relationship, but a 'highly desirable' condition.
Brand Looks, which have a role to play in forming reinforcing brand associations are facilitated
by two key properties of a brand—its name and its symbol. While the brand name is a necessary
condition for the existence of brand relationship, the same is not true for brand symbol.
However, if the latter exists it helps the process of brand relationship and reinforces it.
Brand symbol includes two visual signals of a brand—its character (e.g. Amul girl, Vodafone
ZOO ZOO) and its logo.
● brand name
● brand associations
● brand attitude
'Highly desirable' aspects for the brand relationship to exist are (excluding the 'necessary'
aspects):
● brand position
● brand symbol
The model is a process. It has linked up steps. It is dynamic. It never ends. And it is all to do
about managing the minds of the people and aspects about a product, thus creating a brand
relationship, and defining a brand.
● The brand helps to build loyalty for the product among the customers. Brand loyal
customers are a source of repeat sales. E.g. Amazon great Indian sale
● Branding is necessary for the sales promotion and building a demand for the product in a
selective manner
● A brand distinguishes and differentiates a product from the goods of the competing
companies
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● Branding assists in the maintenance of a proper control over the price, quality, and other
features
● Brands distinguish and differentiate the goods of different manufacturers and this fact
enables the consumers to choose their products.
● Consumers use brands to express themselves in different ways. It helps consumers to
express their socio –psychological needs such as Social status, success, personality, etc.
● Brands help in increasing revenues and market shares for the organization
❖ Limitations of Branding
1. When a brand is known for something and it branches out for something else, the new
brand may get totally ignored e.g., the WWE is a pro wrestling organization. A few years
ago, they bought a football league. The media, sports fans, and the public didn’t allow it
to take off because the WWE brand is known for its staged violence, not competitive
sports. Sometimes a few exceptions like Kodak as pharmaceuticals are well accepted.
2. Like human beings have personality, every brand must have a personality. But like
human beings, every brand cannot have all qualities. So, to build a brand through
positioning, there will be areas which you cannot cover, or which will be rejected by a
segment of consumers e.g., cakes containing eggs will be rejected by vegetarians or
Cadbury’s cookies and cakes accepted by the target audience.
3. A brand is a promise to customers to fulfill the value proposition the brand offers. If the
brand fails even once, the brand building process must begin all over again. E.g., Colgate
ready meals failed in the market.
4. For a brand to succeed, consistency in its communication through its various channels is
important. This requires lots of time, money, and effort. Any inconsistency will result in
the brand losing its place in the market.
5. Once brand identity is established, you cannot change it often. Changes in LOGO,
Symbol, and name can lead to confusion among customers. Orange-to Hutch-to
Vodafone.
6. In areas where generic brands are predominately sold, brand building efforts on a
particular brand may not matter to the customers who are fully satisfied buying its generic
brand. For products where brand loyalty does not matter e.g., socks, sugar branding
doesn’t matter. ❖ Types of brands - National, Retail, Flanker, Distributor, Luxury,
Global brands
National brand:
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A national brand is the brand of a product manufactured and spread nationwide using a brand
name and owned by this company. It brings companies brand recognition, customer loyalty, and
high revenue. E.g., Nirma, Amul, and Parle
National brands are considered superior to private labels because they have brand recognition
and high revenue. National brands have the following advantages:
People are more likely to repeat their purchases if they like the products Retail
branding:
Retail branding is a strategy based on the brand concept and which transfers it to a retail
company. A retailer's “products” are his stores that can be marketed in a similar way to a branded
good. A retail brand is then a group of the retailer's outlets which carry a unique name, symbol,
logo, or combination thereof. E.g., the retail brand is Shoppers stop, Big Bazzar, etc.,
Like the brands they sell, retailers have brand images that influence consumers and must be
carefully constructed and maintained. Academics have identified the following five dimensions
of a retailer’s brand image:
Access: The location of a store and the distance that consumers must travel to shop are basic
criteria in their store choice decisions. Access is a key component in consumers’ assessment of
total shopping costs and is especially important for retailers who wish to get a substantial share
of wallets from fill-in trips and small-basket shoppers. E.g., DMart gives an option of DMart
ready near the location of the customers and provides them a discount every day.
Atmosphere: Different elements of a retailer’s in-store environment, like color, music, and
crowding, can influence consumers’ perceptions of its atmosphere, whether they visit a store,
how much time they spend in it, and how much money they spend there. A pleasing in-store
atmosphere provides substantial hedonic utility to consumers and encourages them to visit more
often, stay longer, and buy more. E.g., Hamley’s keep the store updated always with different
toys, Shoppers Stop also keep the environment pleasant for consumers to shop.
Price and Promotion: A retailer’s price image is influenced by attributes like the average level
of prices, how much variation there is in prices over time, the frequency and depth of
promotions, and whether the retailer positions itself on a continuum between EDLP (everyday
low price) and HILO (high-low promotional) pricing. Consumers are more likely to develop a
favorable price image when retailers offer frequent discounts on many products than when they
offer less frequent, but steeper discounts. E.g., Big bazaar, Reliance store.
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Cross-Category Assortment: Consumers’ perception of the breadth of different products and
services offered by a retailer under one roof significantly influences store image. A broad
assortment can create customer value by offering convenience and ease of shopping. It is risky to
extend too far too soon but staying too tightly coupled to the current assortment and image may
unnecessarily limit the retailer’s range of experimentation. E.g., Tupperware keeps a range of
product categories in kitchen containers and storage. Shopper’s Stop gives apparels, footwear,
and fashion, and Home Stop (home furnishing) under one roof.
Flankers: Certain brands act as protective flanker or “fighter” brands. The purpose of flanker
brands typically is to create stronger points-of-parity with competitors’ brands so that more
important (and more profitable) flagship brands can retain their desired positioning. Many firms
are introducing discount brands as flankers, to better compete with store brands and private
labels and to protect their higher-priced brand companions. In Australia, Qantas launched Jetstar
airlines as a discount fighter brand to compete with the recently introduced low-priced Virgin
Blue airlines—which was meeting with much success—and to protect its flagship premium
Qantas brand. E.g., iPhone SE was introduced to attract consumers who are price sensitive.
In designing fighter brands, marketers walk a fine line. Fighters must not be so attractive that
they take sales away from their higher-priced comparison brands or referents. At the same time,
if they are connected to other brands in the portfolio in any way (say, through a common
branding strategy), they must not be designed so cheaply that they reflect poorly on these other
brands.
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Distributor brands: All private label merchandise is sold as a distributor brand. Brand name
used by a retail outlet. Generally referred to as ‘Own Label’ or private label goods that are
usually competitively priced and are intended to promote outlet loyalty, rather than brand loyalty.
Sometimes used to include brands marketed by a collection of retailers.
A distributor is an entity that buys noncompeting products or product lines and sells them direct
to end users or customers. Most distributors also provide a range of services such as technical
support, warranty, or service. Distributors are essential in helping reach markets manufacturers
could not otherwise target.
Luxury brands: Luxury brands are perhaps one of the purest examples of branding, because the
brand and its image are often key competitive advantages. Several characteristics define luxury
branding and suggest strategic and tactical guidelines. Maintaining a premium, prestige image
with luxury branding is crucial; controlling that image is thus a priority. Ideally, the image will
be designed to be globally relevant. Luxury branding often relies on an aspirational image that
benefits from a “trickle-down” effect to a broader audience via PR and word-of-mouth, but there
must be a good balance between accessibility and exclusivity. E.g., Taj Palace, BMW, and
Mercedes
Luxury is hard to define; it's expensive but not overpriced. It's high-quality and long-lasting, but
futuristic. It's aesthetically pleasing, but unique. It's not only rare, but also difficult to access. A
luxury brand is a complex platform that conveys messages about quality, lineage, status, and
taste. ... A luxury brand marketing strategy aims to create the highest brand value and pricing
power by leveraging multiple brand elements, such as heritage, country of origin, craftsmanship,
scarcity, and prestigious clients.
Global Branding: "International" has a smaller scope encompassing only two or more countries
while "global" has a much larger scope which includes the whole world. Although they are
sometimes used interchangeably, "global" means "all-encompassing and worldwide" while
"international" means "foreign or multinational." E.g., Coca-Cola is a great example of a brand
using international marketing efforts. Though a large corporation, Coca-Cola focuses on small
community programs and invests a lot of time and money in small-scale charity efforts.
BRAND ELEMENT
Brand elements, sometimes called brand identities, are those trademarkable devices that serve to
identify and differentiate the brand. The main ones are
There are six criteria for brand elements (with more specific sub-choices for each, as
- Memorability -
- Meaningfulness - Marketer’s offensive strategy & build brand equity
- Likability
- Transferability -
- Adaptability - Defensive role in leveraging & maintaining brand equity
- Protectability -
4. Transferability: Is the extent to which brand elements can add brand equity to new
products of the brand in the line-extensions. Another point, a marketer needs to keep in
mind is that the brand element should be able to add brand equity across geographical
boundaries and market segments. For example, brand names like “Apple”, and
“Blackberry” represent fruits the world over, thus as a brand name, it doesn't restrict
brands and product extensions.
5. Adaptability: Consumer opinions, values, and views keep changing over a period of
time. The more adaptable and flexible brand elements are the easier it is to keep up
changing and up to date from time to time to suit the consumer's liking and views. For
example, Coca Cola has been updating it's logo over the years to keep up with the latest
trends, fashions, and opinions. When Pepsi started marketing its products in China, it
translated the slogan “Pepsi Brings You Back to Life” literally. In Chinese, it really
meant, “Pepsi Brings Your Ancestors Back from the Grave. Dunkin also changed the
name and logo to cater to the different product categories.
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6. Protectability: The final criteria in choosing a brand element are that it should be
protectable legally and competitively. Brand elements need to be chosen in such a way,
that they can be internationally protected legally, and legally registered with legal bodies.
Marketers need to voraciously defend their trademarks from unauthorized competitive
infringements. For e.g., Xerox, Paper boat, etc
The above 3 criteria constitute the "Defensive strategy" towards leveraging and maintaining
brand equity. The most ideal brand elements would be those which satisfy all the criteria. But it
is not possible have a brand element which would satisfy all the above criteria.
For example, if we choose a brand name which is most meaningful in a country or culture or a
market segment, it would be very difficult to make it transferable to other brand extensions and
to other cultures and market segments.
A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate
the formation of strong, favorable, and unique brand associations.
- Brand names
- URLs
- Logos and symbols
- Characters
- Slogans
- Jingles
- Packaging
1. Brand Names: Like any brand element, brand names must be chosen with the six general
criteria of memorability, meaningfulness, likability, transferability, adaptability, and
protectability in mind.
Brand Naming Guidelines: Selecting a brand name for a new product is certainly an art and a
science Brand Awareness Brand names that are simple and easy to pronounce or spell, familiar
and meaningful, and different, distinctive, and unusual can obviously improve brand awareness
for e.g., Coca Cola, Chevrolet, Budweiser, etc.
Marketers can shorten longer names to make them easier to recall. For example, over the years
Chevrolet cars have also become known as “Chevy,” Budweiser beer has become “Bud,” and
Coca-Cola is also “Coke.”
A) Familiarity and Meaningfulness: The brand name should be familiar and meaningful so it
can tap into existing knowledge structures. It can be concrete or abstract in meaning. Because the
names of people, objects, birds, animals, and inanimate objects already exist in memory,
consumers must do less learning to understand their meanings as brand names. To help create
strong brand-category links and aid brand recall, the brand name may also suggest the product or
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service category, for e.g., Nimbooz, D’Cold, Newsweek Brand elements that are highly
descriptive of the product category or its attribute and benefits can be quite restrictive, for
example, it may be difficult to introduce a soft drink extension for a brand called JuicyJuice!
Distinctive words may be seldom-used or atypical words for the product category, like Apple
computers; unusual combinations of real words Apple and Nike. A strong brand name now,
Apple is viewed as something that is rich in nutrients and flavor that can be translated
universally. The apple is also looked at as a symbol of love and forbidden temptations in Greek
Mythology.
2. URLs: URLs (uniform resource locators) specify locations of pages on the web and are
also commonly referred to as domain names. Anyone wishing to own a specific URL must
register and pay for the name A company can either sue the current owner of the URL for
copyright infringement, buy the name from the current owner, or register all conceivable
variations of its brand as domain names ahead of time.
Brand recall is critical for URLs because it increases the likelihood that consumers easily
remember the URL to get to the site Yahoo!, however, was able to create a memorable brand and
URL.
3. Logos and Symbols: Although the brand name typically is the central element of the
brand, visual elements also play a critical role in building brand equity and especially brand
awareness. Logos have a long history to indicate origin, ownership, or association.
It plays a critical role in building brand equity and especially brand awareness. Logos range from
corporate names or trademarks (word marks with text only) written in a distinctive form, to
entirely abstract designs that may be completely unrelated to the word mark, corporate name, or
corporate activities e.g., Nike Swoosh.
Examples of brands with strong word marks and no accompanying logo separate from the name
include Coca-Cola, Dunhill, and Kit Kat. Examples of abstract logos include the Mercedes star,
Rolex crown, and Olympic rings.
Logos have versatility: Because they are often nonverbal, logos transfer well across cultures and
over a range of product categories. Abstract logos offer advantages when the full brand name is
difficult to use for any reason e.g., LIC (Life insurance Corporation) logos can be easily adapted
over time to achieve a more contemporary look.
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4. Characters:
A special type of brand symbol—one that takes on human or real-life characteristics Some are
animated like Pillsbury’s Poppin’ Fresh Doughboy, AMUL girl character, Air India Maharaja,
Tiger biscuit, Parle girl, Starbucks mermaid etc. there are live-action figures Ronald McDonald,
7up Fido dido, Onida devil and the Notable newcomers include Vodafone ZOO ZOO.
5. Slogans:
Slogans are short phrases that communicate descriptive or persuasive information about the
brand. Slogans are powerful branding devices because, like brand names, they are an extremely
efficient, shorthand means to build brand equity
Classic Slogans
6. Jingles:
Jingles are musical messages written around the brand. Typically composed by professional
songwriters, they often have enough catchy hooks and choruses to become almost permanently
registered in the minds of listeners— sometimes whether they want them to or not! Jingles are
perhaps most valuable in enhancing brand awareness. Some memorable ones
Packaging is the activities of designing and producing containers or wrappers for a product. Like
other brand elements, packages have a long history. From the perspective of both the firm and
consumers, packaging must achieve a number of objectives:
Often, one of the strongest associations, consumers have with a brand is inspired by the look of
its packaging. For example, if you ask the average consumer what comes to mind when he or she
thinks of Mountain dew a common response is a “Fluorescent green bottle” or paper boat with
unique paper coated packaging
The right packaging can create strong appeal on the store shelf and help products stand out from
the clutter, critical when you realize that the average supermarket shopper can be exposed to
20,000 or more products in a shopping visit that may last less than 30 minutes and include many
unplanned purchases. For these reasons, the packaging is a particularly cost-effective way to
build brand equity. It is sometimes called the “last five seconds of marketing” as well as
“permanent media” or “the last salesman. The beverage industry in general has been
characterized by several packaging innovations.
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❖ Chapter 2 : Brand identity
● In 1970, Richard Branson with a few friends founded Virgin Records as a small mail-
order company in London, England; a modest retail store on Oxford Street followed in
1971.
● The partners chose the name Virgin because of their youthfulness and lack of business
experience. Within thirteen years, however, the company grew into a chain of record
shops and the largest independent label in the United Kingdom,
● In February 1984, a young lawyer approached Richard Branson with a proposal to start a
new airline. Branson thought that his experience in the entertainment industry could add
significant value to an airline business.
● Because he personally found air travel boring and unpleasant, his idea was to make flying
fun, with an attractive value proposition: "To provide all classes of traveller with the
highest quality of travel at the lowest cost."
● Defying the odds (and vigorous attempts by British Airways to crush it), Virgin has
prospered. By 1997 it had served thirty million customers, exceeded $3.5 billion in
annual sales, and become the second airline (in passengers) in most of its markets and
routes.
● There are thousands of moments of truth in the airline business when the customer
experiences service quality first-hand. In this context, Virgin Atlantic has performed
extraordinarily well, as evidenced by the multiple quality awards it has received. ●
Virgin’s philosophy on innovation is simple: be first and dazzle customers. Virgin
pioneered sleeper seats in 1986 (British Airways followed nine years later with the cradle
seat), in-flight massages, child safety seats, individual video screens for business-class
passengers, and new service classes positioned above the normal coach and business-class
offerings of other airlines. In short, Virgin has pushed innovation like no other airline.
Three percent of revenues are allocated to new service quality innovations—nearly
double the spending of the average U.S. carrier.
● Virgin's airport lounges provide putting greens, masseurs, beauty therapists, and facilities
to shower, take a Jacuzzi, and nap. On some routes, the airline offers first-class
passengers a new tailor-made suit waiting at their destinations. Customers even have the
option of checking in at the airport via a convenient, McDonald’s- style drive- through
the window. The goal is to create memorable, fun, entertaining experiences.
● Compared to established brands like British Airways, Levi Strauss, Coca-Cola, Virgin
was considered as underdog, who cares, innovates and delivers attractive service to them
to enjoy and to create memories.
● The Virgin Group comprises later some 100 companies in 22 countries and includes a
discount airline (Virgin Express), financial services (Virgin Direct), a cosmetics retail
chain and direct sales operation (Virgin Vie), and several media companies (Virgin
Radio, Virgin TV), a rail service (Virgin Rail), soft drinks and other beverages (Virgin
Cola, Virgin Energy, Virgin Vodka), a line of casual clothing (Virgin Clothing, Virgin
Jeans), a new record label (V2 Records), and even a bridal store (Virgin Bride).
● Virgin logo is written in script and at an angle, the logo provides a contrast to the brands
that display their names in more conventional fonts and are portrayed symmetrically. The
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script (reminiscent of Intel Inside) provides a sense that Branson might have written it,
and the rakish angle is a bit of a statement that Virgin is not just another big corporation.
Brand association: The feelings, beliefs, and knowledge that consumers (customers) have about
brands. A brand association is anything "linked" in memory to a brand. Thus, McDonald's could
be linked to a character such as Ronald McDonald, a consumer segment such as kids, a feeling
such as having fun a product characteristic such as service, and a symbol such as the Golden
Arches. These associWations might include product attributes, a celebrity spokesperson, or a
particular symbol.
❖ Brand identity
Brand identity is a unique set of brand associations that the brand strategist aspires to create or
maintain. These associations represent what the brand stands for and imply a promise to
customers from the organization members.
Brand identity should help establish a relationship be tween the brand and the customer by
generating a value proposition involving functional, emotional, or self-expressive benefits.
Brand identity consists of twelve dimensions organized around four perspectives—the brand-
asproduct (product scope, product attributes, quality/value, uses, users, country of origin), brand-
asorganization (organizational attributes, local versus global), brand-as-person (brand
personality, brand-customer relationships), and brand-as-symbol (visual imagery/metaphors and
brand heritage).
It is all about values and what the brand would like to be in the future The
The core identity is: Fundamental beliefs and values that are the main drivers of the brand
Competencies of the organizations behind the brand
What the organization stands for? If the values of the organization and the culture of the
organization is right, the brand can take care of itself. Core identity follows from the answers to
some introspective questions
Even the core identity is, however, too multi-faceted for a single slogan.
The core identity does not possess enough detail to perform all the functions of a brand identity.
The extended identity Includes elements that provide texture and completeness Fills in the
picture, adding details that help portray what the brand stands for. The extended identity e.g.
McDonald’s Sub-brands, Logo, Characters, Convenience; Nike Personality, Logo, Slogan, sub-
brands, Endorsers; Close Up Mnemonic, Variants, Packaging.
The identity structure Core identity for a strong brand should be more resistant to change than
elements of extended identity. With-in a product class, a larger extended identity means a
stronger brand. One that is more memorable and interesting and connected to a consumer’s life.
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In order to ensure that brand equity has texture and depth a brand should be considered as :
● A product
● An organization
● A person
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● A symbol
1. Brand as a Product :- Although one should avoid the product attribute fixation trap,
product relate associations will almost always be an important part of a brand identity and
will directly be related to brand choice decisions and use. A strong link to a product class
means the brand will always be recalled when the product class is cued for instance rental
cars – Zoom cars. Coffee- Nescafe.
The goal of linking a brand with a product class is not to gain a recall of product class when the
brand is mentioned e.g., rental cars – Zoom cars. It is more important to remember to recall the
brand when the product class is mentioned.
Attributes related to the purchase or use of the product can provide functional and emotional
benefits. It can create a value proposition by offering something extra. The problem arises when
attributes become the focus of identity efforts.
The quality element is important to consider separately. Value is closely related to quality, it
enriches the concept by adding the price dimension
Some brands successfully attempt to own a particular use or application e.g., Nescafe has been
trying to establish itself as a morning beverage “the taste that gets you started”, Cadbury’s
celebration.
A strong type –position can imply a value preposition and a brand personality. Nike by athletes,
Horlicks by children, women and mothers. McDonald by family. Link to country
This will add value and credibility (VODKA – Russian, Mercedes German, Swatch watches –
Swiss Made, Champagne France)
2. Brand as an Organization.
A brand in the marketplace is more than a plain product. Its origin, the company or the
organization that markets it could be designed as an important identity structure. Organization
attributes as innovation a drive for quality and concern for the environment.
Organization attributes are more enduring and more resistant to competitive claims than product
attributes. First it is much easier to copy a product than to duplicate the organization with unique
people values and programs.
3. Brand as a person.
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A customer’s relationship with a brand may be based on its human like traits. Suggest a brand
identity that is richer and more interesting than product attributes. A brand can be perceived as
being upscale, competent, fun, active, casual format, youthful or intellectual.
A brand personality may help communicate a product attribute and this contribute to a functional
benefit. For e.g., MRF personality (promoted by MRF muscle man and formula race
sponsorship) consists rugged, strong, and sophisticated dimensions. These associations indirectly
suggest that MRF Tyres are strong, built to last and incorporate new technology
4. Brand as a symbol
A symbol stands for something. It can provide cohesion and structure to an identity and make it
easier to gain recognition and recall. Its presence can be a key ingredient of brand development
and its absence can be a handicap.
Symbols involving visual imagery can be memorable and powerful (McDonald’s Golden Arc,
Nike Swoosh)
Brand identity should help establish a relationship be tween the brand and the customer by
generating a value proposition involving functional, emotional or self-expressive benefits. ❖
Chapter 3 : Brand Positioning
Definition
Kotler defines positioning as an “Act of designing the company’s offering and image to occupy a
distinctive place in the minds of target market and how it is distinguished from that of
competitors.
Ries & Trout defines “Positioning starts with the product. But positioning is not what you do to
the product. Positioning is what you do the mind of the prospects
1. Product class
2. Consumer segmentation
3. Consumer perception
4. Brand benefits & attributes
These four components of the positioning concept are so closely interwoven that they must be
taken together when we consider the positioning of a brand.
Positioning requires defining our desired or ideal brand knowledge structures and establishing
points-of-parity and points-of-difference to establish the right brand identity and brand image.
Unique, meaningful points-of-difference (PODs) provide a competitive advantage and the
“reason why” consumers should buy the brand. On the other hand, some brand associations can
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be roughly as favorable as those of competing brands, so they function as points-of-parity (POPs)
in consumers’ minds—and negate potential points-of-difference for competitors. In other words,
these associations are designed to provide “no reason why not” for consumers to choose the
brand.
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The essence of brand positioning is that the brand has a sustainable competitive advantage or
“unique selling proposition” that gives consumers a compelling reason why they should buy it.
Marketers can make this unique difference explicit through direct comparisons with competitors,
or they may highlight it implicitly. They may base it on performance-related or non-
performancerelated attributes or benefits.
Product class:
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A product class or product market can be defined as the set of products and brands which are perceived
as substitutes to satisfy some specific consumer need
A brand manager must be ever aware that he may suddenly find himself face-to-face with an
infiltrator from across the historical border
For e.g., brands, like Haldiram and Bengali sweets comfortable position was suddenly
challenged by a brand from another product class altogether.
The first appearance of Cadbury's celebration “Kuch meeta Ho jaaye “came as a rude shock
being launched against synonymous with traditional mithai.
Pond's Cold Cream's comfortable position seems to have been suddenly challenged by a brand
from another product class altogether. Lakme's Winter Care Lotion ad said cold cream and
moisturizer in one"
Oberholser of Young and Rubicam calls this - the choice of product class - the first 'positioning'
decision of the advertising strategist.
Consumer Segmentation
This is the mantra that all marketers must live by: One-size-fits-all doesn’t fit, never did, and
never will. Most of us would be well versed in the theory and significance of consumer
segmentation.
A market is the set of all actual and potential buyers who have sufficient interest in, income for,
and access to a product. Market segmentation divides the market into distinct groups of
homogeneous consumers who have similar needs and consumer behavior, and who thus require
similar marketing mixes. Market segmentation requires making trade-offs between costs and
benefits. The more finely segmented the market, the more likely that the firm will be able to
implement marketing programs that meet the needs of consumers in any one segment. That
advantage, however, can be offset by the greater costs of reduced standardization. So, the other
segment is heterogeneous. They command customized products, also do have different needs.
What is the profile of the consumers whom our brand will serve and what are their needs?
One cannot think of 'positioning' a product or a brand except in relation to a particular target
segment.
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Behavioral segmentation bases are often most valuable in understanding branding issues because
they have clearer strategic implications. For example, defining a benefit segment makes it clear
what should be the ideal point-of-difference or desired benefit with which to establish the
positioning. Take the toothpaste market. One research study uncovered four main segments:
Leading brands-those with very large market shares-tend to position themselves across several
segments: for example, Horlicks, "the great nourisher" (about 75% market share- children,
women, athletes, biscuits). Other brands are focused more narrowly like ‘Complan’ which is the
"complete planned food for growing children".
Positioning is a theory that was born out of the intense competition let loose by a great
proliferation of brands
Target market and positioning strategies are like the two sides of a coin. They are inseparable;
each depends upon the other.
Perceptual Mapping
Example –
You will note that only two product attributes have been considered. In this case, they are ‘to
what extent does the consumer consider the product to be high/low in sugar’ and ‘to what extent
is a product considered high/low in caffeine’.
The simple combination of these two scores (probably obtained from a consumer survey) places
the product offering onto the map. For example, on this map, the 7-Up product offering is
perceived as having a moderate level of sugar and being relatively low in caffeine’.
The physical existence of a brand is no assurance that it has a position in the target consumer's
mind.
To enter that coveted territory-the consumer's perceptual space and to secure a 'position' there, the
brand must satisfy his question:
Brand associations may be either brand attributes or benefits. Brand attributes are those
descriptive features that characterize a product or service. Brand benefits are the personal value
and meaning that consumers attach to the product or service attributes. Consumers form beliefs
about brand attributes and benefits in different ways
Case study on brand positioning: ANTABAX Antabax is a Malaysian personal care brand that
offers a range of antibacterial products. Antabax first started with its three soap ranges: Shield,
Gentle, and Balance. But the challenge for Antabax is to convince customers that its products
belong in the “hygiene care” category, the same category as some of Antabax’s competitors:
Lifebuoy, Protex, and Dettol. Despite the brand’s longevity, the company fears that customers
still don’t see its products as sitting within the health and hygiene category. By dubbing them
“Halal health care products,” Antabax has reformulated and repackaged its personal care
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products. The company is also working on new schemes which aim to increase customer
awareness. For instance, it has introduced a new brand ambassador, Malaysian singer Ziana Zain,
who is involved with the Antabax new range of product launches and roadshows. It has also
started an Antabax Facebook contest called “2012—My Attribution Year for Others,” and has
been promoting the Antabax family of products with a “hygiene” concept in schools. Today,
Antabax is the fastest growing brand within the bar and liquid medicated category.
Brand positioning helps a brand manager to strategize as to where he can locate a niche in the
market where the brand may be perceived by his target segment as unique and where it will hold
a competitive edge.
The market position of a brand shows where a specific brand is located. It shows the
relationship between two competitive brands
These strategies revolve around four strategic questions: (THESE POINTERS CAN ALSO
BE USED TO SOLVE CASE STUDY when asked to create brand positioning strategies)
1. Who am I?
2. What am I?
3. For whom am I?
4. Why me?
1. Who am I?
This question concerns the corporate credentials of the Brand. The prospect needs to think of the
brand in terms of its origin, family tree and stable from which it comes; the idea being that this
can give a brand competitive advantage
Most of the durables use this positioning for e.g., ITC is a corporate brand and Sunfeast uses the
endorser’s name to introduce the new product range. E.g., Bingo, Aashirwaad, Vivel.
This can be a such a strong positioning element that companies who market each brand under a
different name, e.g., Liril, Lux, Rexona, Pears, Lifebuoy) Nevertheless introduce the corporate
credential as a by line: A quality product from Hindustan Lever.
Category related
Example:
As per international trends can enter the breakfast food category and position your milk powder
as an instant breakfast
● Fresh Breath
● Close up
● Sensitive teeth
● Sensodyne
For whom am I?
Why me?
Unique attributes
Companies like Nestle, P&G, Nirma will not market a product unless they have endowed it with
some unique attributes. E.g., Pride of cows promises unique benefits of fresh packed organic
milk of cows that gives different experience to consumers.
When Tuborg beer launched in 2009 in India by introducing a unique pull-off cap, which lends
consumers freedom to enjoy their drink without having to look for a bottle opener. Tetra packed
milk, juices to keep it fresh for long time. Burger king with no frozen patty.
Positioning by competitors
● Comparison advertising
● Pepsi vs Coke
● Colgate v/s Pepsodent
● Apple v/s Samsung and Google
Positioning Strategies (FOR CASE STUDY SOLUTION THESE POINTERS CAN ALSO BE USED)
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There are 7 positioning strategies
1. Positioning by Product
2. Positioning by Price/ Quality
3. Positioning by use or application
4. Positioning by product class
5. Positioning by product user
6. Positioning by Competitor
7. Positioning by cultural symbols
One way they do it is with ads that reflect the image of a high-quality brand where cost, while not
irrelevant, is considered secondary to the quality benefits derived from using the brand.
Premium brands positioned at the high end of the market use this approach to positioning.
Another way to use price/ quality characteristics for positioning is to focus on the quality or
value offered by the brand at a very competitive price. Lux soap gives better quality at low cost
and the wheel detergent or Rin soap which always focuses on the value addition and price- Rin
Bar @ Rs 5/-
Another way is to communicate a specific image or position for a brand is to associate it with a
specific use or application. Example: Vanish is positioned as stain remover- Think Pink forget
stains. Colgate pain out
Often the competition for a product comes from outside the product class. The product is
positioned against others that, while not the same, provide the same class of benefits. Airlines
know that while they compete with other airlines, trains and buses are also viable alternatives.
Dove is positioned as a moisturizer, not a soap. Dettol soap is positioned as a germ killer
5. Positioning by product user :
An additional positioning strategy where in the cultural symbols are used to differentiate the
brands. Examples would be Humara Bajaj, Tata Tea, Taj Hotel, Ronald McDonald, India gate
Basmati Rice, Air India, etc. Each of these symbols has successfully differentiated the product it
represents from competitors
1. Relevance - Positions that do not focus on benefits that are important to people or reflect
the character of the product will fail. Often in their search for differentiation, marketers
seize upon some attribute in their product which is different but, is of little concern to
customers. This is a waste of time and money. Air India symbolizes graciousness and
high living is an example of a powerful position based on the service provided by Air
India. Lipton Green tea is relevant for weightwatchers.
2. Clarity - A position should be easy to communicate and quick to comprehend. Difficulty
in either suggests that a position is too fuzzy to be of value to the brand. Utterly-butterly
delicious AMUL established Amul butter over the years and still strongly holds the
dominant position in the market. Surf excel- daag ache hai.
3. Distinctiveness - People have few needs that are unfulfilled, and they have many choices
to fill the needs they have. If a brand's position lacks distinctiveness it will be forced to
compete on the bases of price or promotion; expensive strategies that will not build brand
equity in the long term. E.g., a Lot of brands are there to provide online services, but
Amazon stands distinct due to its prime delivery. Bose for noise cancellation headphones.
4. Coherence - Speak with one voice through all the elements of the marketing mix if you
wish to create a strong position If, for example, a brand that is positioned as premium
quality and price appears in an end-aisle "sale" display, its quality image will suffer. All
collaterals marketing and others should reflect and translate the brand's position into the
appropriate form for the media.
5. Commitment - Often people will get nervous when a strong position threatens to ignore
or even alienate some segment of the population as a price of clearly communicating to
the desired target. Once a position is adopted, it takes commitment to see it through, in
the face of criticism and pot shots.
6. Patience - Crest has dominated its market for over thirty years. When it was first
introduced positioned as a cavity fighter its share never rose above 13% for three years.
The ADA approval was the key to launching the brand to over 40% of the market. Had
P&G lost patience after two or three years, someone else would be enjoying the profits of
this powerful brand position.
7. Courage - It goes without saying that adopting a strong brand position requires bravery.
It is much easier to defend an appeal to everyone with a rather generic sales pitch. You
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must believe that the position makes strategic sense for the brand and then stick to your
guns. e.g., Ferrari, Dyson
To make all this really effective you need to wrap it all in a strong Brand Personality
● Brand personality reflects how people feel about your brand, rather than what they
think the brand is or does.
● It is the way a brand speaks and behaves.
● It means assigning human personality traits/ characteristics to a brand to achieve
differentiation.
● Is a unique collection of emotional triggers that people can connect with.
Create stories
The human brain is wired for storytelling – it is one of the most effective techniques for
capturing the hearts and minds of people.
Rope in some famous actor/ character - ●
Characters will do the trick.
● Characters come in all shapes and sizes so there’s bound to be one that will fit
your brand and add oodles of personality
Brand Personality -
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Brand personality refers to the set of human characteristics associated with a brand. - Jennifer Aaker
(1997),.
Brand Personality provides an emotional identity for a brand and encourages consumers to
respond with feeling and emotions towards the brand. It is how the brand behaves Gender, age,
socioeconomic class, psychographic, emotional characteristics
E.g.,
The brand personality is how the brands show up and acts in front of the customers. It comprises
of tone, voice, associations, and all elements that make an individual unique and establish
identity.
The process of developing a brand personality requires the brand managers to get an intimate
understanding of the customers and draft a personality that evokes the ‘like, know, and trust’
factor. That is, developing a personality that –
1. Immediately attracts the target audience by evoking a feeling of comfort, familiarity, awe,
or respect.
2. Making the future target audience (people just outside the target audience periphery) like
the brand and appreciate and value the offerings.
3. Keep away the customers that the brand doesn’t want to attract.
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Example -
● User imagery can be based on either typical users (people you see using the brand) or
idealized users (as portrayed in advertising and elsewhere).
● It describes who or what type of person, might use that product / brand. Somebody may
identify himself as Mercedes owner or Volvo driver.
● The TVC of Raymond’s,( playing with puppies) focuses on soft side of man (i.e., caring
and loving) and on subtle aspects of lifestyles of executives.
● Here the focus is on emotional aspects rather than on functional attributes). User imagery
can be a powerful driver of brand personality, in part because the user is already a person
and thus the difficulty of conceptualizing the brand personality is reduced.
● E.g., The upscale personality of Mercedes, Athlete for Reebok, Nike, BMW is driven by
old retired man, LIC by a family man.
● Sponsorships - Activities such as events sponsored by the brand will influence its
personality Pond’s sponsoring Femina’s ‘Miss India’ contest. Budweiser sponsoring the
aircraft in American sporting events, VIVO for sports events, Dream11,
● Age - How long a brand has been on the market can affect its personality New entrants
like Apple , Outlook etc., tend to have younger brand personalities than IBM , India
Today etc., Dettol is century old brand, Britania is over 150 yers old brand. BYJU;s,
VIVO, One plus are young.
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●
Symbol - A symbol can be a powerful influence on brand personality since it can be
controlled and can have extremely strong associations Some examples…Apple’s bitten
apple, Nike’s swoosh, MetLife’s Peanuts character
●
The five core dimensions and their facets are:
5 Dimensions -
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●
Continue….
● To see how this model works, consider personality types of people with whom we
have relationships and the nature of those relationships
Down-to-earth, family oriented, genuine, old-fashioned (Sincerity). This might describe
brands like Hallmark, Kodak, and even Coke. The relationship might be similar to one
that exists with a well liked and respected member of the family.
● Spirited, young, up-to-date, outgoing (Excitement). In the soft drink category, Pepsi
fits this mold more than Coke. Especially on a weekend evening, it might be
enjoyable to have a friend who has these personality characteristics.
Examples -
The ways a brand personality can create brand equity are summa rized by the three
models shown below
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● Linking to associate with personality exhibited by the brand that drives to purchase. The
consumer wants to establish relationship with brand e.g., Eureka Forbes is taken as friend for
life or a responsible one who takes care of the family. Or weekend fun companion is coke.
● Some people may never aspire to have a certain personality trait but would like to have a
relationship with one who has that.
● A trustworthy, dependable, conservative personality might be seen boring but sought
nevertheless, from banks or financial products. E.g., investment into mutual funds
● The concept of a relationship between a brand and a person provides a different perspective
on how brand personality might work
● The premise of the self-expression model is that for certain groups of customers, some brands
become vehicles to express a part of their self-identity. These brands can add in the status and
prestige.
● Apple is perceived as friendly, unpretentious, bold and willing to go against the grain.
This is because Mac is easy-to-use and due to its symbol, advertising, user groups etc., ●
The use of Apple expresses a personal identity of being young and creative.
● iffany and Co. adds prestige.
● The brand as a badge
● A brand could serve as a consumer’s personal statement Cars, cosmetics, apparels lend
themselves to personality expression because their use occurs in a social context with
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relatively high involvement. The brand becomes part of the self. The ultimate personality
expression occurs when a brand becomes an extension or an integral part of the self .
● The executive who wears Allen Solly on Friday feels semi-casual and waiting to welcoming
the weekend!
● The potential to create this oneness with some people can represent a significant opportunity
for a brand
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● The previous two models provide contexts in which brand personality can be the basis for a
brand strategy and a link to the customer
● A brand personality can also play a more indirect role by being a vehicle for representing and
cueing functional benefits and brand attributes
● Marlboro’s personality of a macho, freedom-loving, adventurous person suggests that the
product is strong
● Harley Davidson’s personality of a rugged, macho, I-am-different-kind suggests that the
product is a powerful, liberating vehicle
● When a visual symbol or image exists that can create and cue personality… … the ability of
the personality to reinforce brand attributes will be greater. ● LIC is peace of mind for
securing life of family.
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• In 1970, Richard Branson with few friends founded Virgin Records as a small
mail-order company in London, England; a modest retail store on Oxford Street
followed in 1971.
• The partners chose the name Virgin because of their youthfulness and lack of
business experience. Within thirteen years, however, the company grew into a
chain of record shops and the largest independent label in the United Kingdom,
• In February 1984, a young lawyer approached Richard Branson with a proposal to
start a new airline. Branson thought that his experience in the entertainment
industry could add significant value to an airline business.
• Because he personally found air travel boring and unpleasant, his idea was to
make flying fun, with an attractive value proposition: "To provide all classes of
traveller with the highest quality of travel at the lowest cost."
• Defying the odds (and vigorous attempts by British Airways to crush it), Virgin has
prospered. By 1997 it had served thirty million customers, exceeded $3.5 billion in
annual sales, and become the second airline (in passengers) in most of its markets
and routes.
• There are thousands of moments of truth in the airline business when the
customer experiences service quality first-hand. In this context Virgin Atlantic has
performed extraordinarily well, as evidenced by the multiple quality awards it has
received.
• Virgin s philosophy on innovation is simple: be first and dazzle customers. Virgin
pioneered sleeper seats in 1986 (British Airways followed nine years later with the
cradle seat), in-flight massages, child safety seats, individual video screens for
business-class passengers, and new service classes positioned above the normal
coach and business-class offerings of other airlines. In short, Virgin has pushed
innovation like no other airline. Three percent of revenues are allocated to new
service quality innovations—nearly double the spending of the average U.S.
carrier.
• Virgin's airport lounges provide putting greens, masseurs, beauty therapists, and
facilities to shower, take a Jacuzzi, and nap. On some routes, the airline offers
first-class passengers a new tailor-made suit waiting at their destinations.
Customers even have the option of checking in at the airport via a convenient,
McDonald’s- style drive- through window. The goal is to create memorable, fun,
entertaining experiences.
• Compared to established brands like British Airways, Levi Strauss, Coca-Cola,
Virgin was considered as underdog, who cares, innovates and delivers attractive
service to them to enjoy and to create memories.
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• The Virgin Group comprises later some 100 companies in 22 countries and
includes a discount airline (Virgin Express), financial services (Virgin Direct), a
cosmetics retail chain and direct sales operation (Virgin Vie), several media
companies (Virgin Radio, Virgin TV), a rail service (Virgin Rail), soft drinks and
other beverages (Virgin Cola, Virgin Energy, Virgin Vodka), a line of casual clothing
(Virgin Clothing, Virgin Jeans), a new record label (V2 Records), and even a bridal
store (Virgin Bride).
• Virgin logo is written in script and at an angle, the logo provides a contrast to the
brands that display their names in more conventional fonts and are portrayed
symmetrically. The script (reminiscent of Intel Inside) provides a sense that
Branson might have written it, and the rakish angle is a bit of a statement that
Virgin is not just another big corporation.
Brand association: The feelings, beliefs, and knowledge that consumers (customers) have
about brands. A brand association is anything "linked" in memory to a brand. Thus, McDonald's
could be linked to a character such as Ronald McDonald, a consumer segment such as kids, a
feeling such as having fun a product characteristic such as service, a symbol such as the
Golden Arches. These associations might include product attributes, a celebrity spokesperson,
or a particular symbol.
Brand identity
Brand identity is a unique set of brand associations that the brand strategist aspires to
create or maintain. These associations represent what the brand stands for and imply a
promise to customers from the organization members.
Brand identity should help establish a relationship between the brand and the customer by
generating a value proposition involving functional, emotional, or self-expressive benefits.
Brand identity consists of a core identity and an extended identity. The core
identity represents the timeless essence of the brand
It contains brand association that is most likely to remain constant as the brand
travels to new markets and products
The core identity, which is the central to both the meaning and success of the brand,
more resistant to change Includes elements that make the brand both unique and
valuable. McDonald’s - Value Offering, Quality, Service, Cleanliness; Nike -Trust,
Performance, Enhancing lives; Close up- Gel form, red color, fresh breath It is all
about values and what the brand would like to be in the future The vision or core
identity must be clear, exciting and memorable.
The core identity contains associations that are most likely to remain constant as the
brand enters new markets and products, than the elements of extended identity. The
brand position and communication strategies may change, so may the extended
identity but core identity remains in its place.
The core identity is: Fundamental beliefs and values that are the main drivers of the
brand Competencies of the organizations behind the brand
What the organization stands for? If the values of the organization and the culture of
the organization is right, the brand can take care of itself. Core identity follows
from the answers to some introspective questions ❖ What is the soul of the
brand?
❖ What are the fundamental beliefs and values that drive the brand?
The core identity does not possess enough detail to perform all the functions of a
brand identity.
The extended identity Includes elements that provide texture and completeness Fills
in the picture, adding details that help portray what the brand stands for. The
extended identity e.g. McDonald’s Sub-brands, Logo, Characters, Convenience;
Nike Personality, Logo, Slogan, sub-brands, Endorsers; Close Up Mnemonic,
Variants, Packaging.
The identity structure Core identity for a strong brand should be more resistant to
change than elements of extended identity. With-in a product class, a larger
extended identity means a stronger brand. One that is more memorable and
interesting and connected to a consumer’s life.
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In order to ensure that brand equity has texture and depth a brand should be considered as : A
product
An organization
A person
A symbol
Every brand identity need not employ all these perspective
A Product :- Although one should avoid the product attribute fixation trap, product relate
associations will almost always be important part of a brand identity and will directly be related
to brand choice decisions and use. A strong link to a product class means the brand will always
be recalled when the product class is cued for instance rental cars –Zoom cars. Coffee- Nescafe.
The goal of linking a brand with a product class is not to gain a recall of product class when the
brand is mentioned e.g. rental cars – Zoom cars. It is more important to remember to recall the
brand when the product class is mentioned.
Attributes related to the purchase or use of product can provide functional and emotional
benefits. It can create value proposition by offering something extra. The problem arises when
attributes become the focus of identity efforts. Association with quality
The quality element is important to consider separately. Value is closely related to quality, it
enriches the concept by adding the price dimension Association with usage occasion
Some brands successfully attempt to own a particular use or application e.g., Nescafe
has been trying to establish itself as a morning beverage “the taste that gets you
started”, Cadbury’s celebration.
Association with users
A strong type –position can imply a value preposition and a brand personality. Nike by
athletes, Horlicks by children, women and mothers. McDonald by family.
Link to country
This will add value and credibility (VODKA – Russian, Mercedes German, Swatch
watches – Swiss Made, Champagne France) 2) Brand as an Organization.
A brand in the marketplace is more than a plain product. Its origin, the company or the
organization that markets it could be designed as an important identity structure.
Organization attributes as innovation a drive for quality and concern for environment.
Organization attributes are more enduring and more resistant to competitive claims than
product attributes. First it is much easier to copy a product than to duplicate the
organization with unique people values and programs. 3) Brand as a person.
A customer’s relationship with a brand may be based on its human like traits. Suggest a
brand identity that is richer and more interesting than product attributes. A brand can be
perceived as being upscale, competent, fun, active, casual format, youthful or
intellectual. A brand personality may help communicate a product attribute and this
contribute to a functional benefit. For e.g., MRF personality (promoted by MRF muscle
man and formula race sponsorship) consists rugged, strong and sophisticated
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dimensions. These associations indirectly suggest that MRF Tyres are strong, built to
last and incorporate new technology
4) Brand as a symbol
A symbol stands for something. It can provide cohesion and structure to an identity and
make it easier to gain recognition and recall. Its presence can be a key ingredient of
brand development and its absence can be a handicap.
Symbols involving visual imagery can be memorable and powerful (McDonald’s Golden
Arc, Nike Swoosh)
A strong symbol can be the cornerstone of a brand strategy
These four traps represent approaches to creating an identity that are excessively
limiting or planned and that can lead to ineffective brand strategies. After these
brand identity traps have been analyzed, a broader identity concept will be developed, its scope and
structure discussed, and the value proposition and credibility that flow from it examined.
The Brand Image Trap
Brand Image is how customers and others perceive the brand. The knowledge of
brand image provides useful and even necessary background information when
developing a brand identity.
In the brand image trap, however, the patience (persistence), resources, or
expertise to go beyond the brand image. If this is not done, then brand image
becomes brand identity. Brand image trap lets the customer dictate what you are.
Brand image is usually passive and looks to the past; brand identity should be
active and look to the future.
Brand image can be tactical/ defensive; Brand identity should be strategic. Brand image
should reflect the brands enduring qualities. It represents the basic characteristics that
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will persist over the time. Strategic intent involves a forward-looking dynamic
perspective it involves a willingness to consider creating changes. A brand identity is
to brand strategy what “strategic intent” is to a business strategy. Strategic intent involves an
obsession with winning, real innovation, stretching the current strategy, and a
forwardlooking, dynamic perspective; it is very different from accepting or even refining past
strategy. Similarly, a brand identity should not accept existing perceptions, but instead
should be willing to consider creating changes.
e.g., Apple is perceived as the most expensive brand. Apple should not let this image dictate
what they are. Apple should keep trying to make perceive their brand differently (values) to
consumers.
The Brand Position Trap
A brand position is the part of the brand identity and value preposition that is to be actively
communicate to the target audience and that demonstrates an advantage over competing
brands
There is a distinction between Brand Image , Brand identity and Brand positioning
The Brand position trap occurs when the search for brand identity becomes a
search for brand positioning stimulated by a practical need to provide objectives to those
developing the communication programs. The goal then becomes an advertising tag line rather
than a brand identity.
The trap will prevent a full-fledged brand identity. Positioning trap focuses on product
attributes and there is no room for brand personality, organizational associations
or brand symbols. A brand position does not have texture and depth to guide brand
building effort which event to sponsor, what should be the store display. There is a need
for richer and more complete understanding of what the brand stands for. E.g., Apple’s
brand identity is imagination, design, and innovation. It is not just known by its products and its
attributes but for the innovation they bring in the market.
e.g., Apple products and iOS is not the only identity of the brand but more than that about how
emotional brand it is, and how innovative brand it is.
The External perspective trap-
To an advertiser a brand identity is something that gets customers to buy the product or
service because of how they perceive that brand. The orientation is entirely external.
The external perspective trap occurs when firms fail to realize the role that a
brand identity can play in an organization understands its basic values and
purpose.
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Because an effective identity is in part on a disciplined effort to specify the strengths, values, and
vision of the brand, it can provide a vehicle to communicate internally what the brand is about. It
is hard to expect employees to make a vision happen if they do not understand and buy into
that vision.
It helps to answer the question “what does your organization stand for”
e.g., if Apple’s products are bought for only features and attributes and the
employees do not understand what the brand stands for, they would not be able
to bring the innovation in the market. Without brand identity Apple is nothing, not
even its products. Apple is expected to realize the values and purpose of their
existence and that can be built even amongst consumers.
The Product – Attribute Fixation-
This is the most common trap. In this case product attributes are focused on the
belief that consumers make purchase decision on attributes of a product. But a
brand is much more than a product. The failure to distinguish between a product
and a brand creates the product fixation trap. Based in part on the erroneous assumption
that those attributes are the only relevant bases for customer decisions and competitive dynamics,
Product – Attribute research
The product – attribute fixation trap is often caused by a reliance focusing on
attributes. Such research is popular due to various reasons:
• It is often effective, as attributes are important to purchase decision and user
experience
• Managers are reassured those customers evaluate brands using logical model,
which means that their decision are easier to predict and understand.
The firms believe that they have extensive data in hand while the research conducted is
more restricted to a list of product attributes. This problem is particularly severe in the
world of IT, Industrial goods and durable goods where mangers are especially fond of
the rational customer model e.g., People buy an Apple not because of the product
attributes but they buys because of the upscale, high tech& innovative brand identity
that Apples restores with brand, in reality, however, the brand also delivers the feeling of buying
and using the best.
Continue…
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● The Energizer rabbit is an upbeat, undefeatable personality who never runs out of
energy Just as the battery it symbolizes runs longer than others.
● A brand personality that represents a functional benefit or attribute may be
relatively ineffective if it lacks a visual image established in the customer’s mind.
● A country or region of origin can add credibility to an identity It can generate a
strong personality that provides a quality cue and a key point of differentiation. ●
E.g. German made cars so precise and comes with no fault.
● There are various ways of creating brand personality. One way is to match the
brand personality as closely as possible to that of the consumers or to a personality
that they like. The process will be:
1. Define the target audience
2. Find out what they need, want and like
3. Build a consumer personality profile
4. Create the product personality to match that profile
Levi Strauss - This type of approach is favored by companies such as Levi Strauss, who research
their target audience precisely. For Levis the result is a master-brand personality that is: original
● Masculine
● Sexy
● Youthful
● Rebellious
● Individual
● Free
● American
A related product brand personality (for a specific customer group) such as Levi's 501 jeans is:
● Romantic
● Sexually attractive
● Rebellious
● Physical prowess
● Resourceful
● Independent
● Likes being admired
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Both profiles appeal mostly to the emotional side of people's minds - to their feelings and
sensory function. This profiling approach aims to reinforce the self-concept of the
consumers and their aspirations. The approach is ideal for brands that adopt a market-
niche strategy, and can be extremely successful if a market segment has a high degree of global
homogeneity, as is the case with Levis.
● User imagery can be based on either typical users (people you see using the brand)
or idealized users (as portrayed in advertising and elsewhere).
● User imagery can be a powerful driver of brand person ality, in part because the
user is already a person and thus the difficulty of conceptualizing the brand
personality is reduced ● It describes who or what type of person, might use that
product / brand.
● Somebody may identify himself as Mercedes owner or Volvo driver. ● The recent
TVC of Raymond’s,( playing with puppies) focuses on soft side of man (i.e., caring
and loving) and also on subtle aspects of lifestyles of executives.
● Here the focus is on emotional aspects rather than on functional attributes.
● User imagery also communicates about the lifestyle of the user.
● User imagery results in user-driven image which is transferred to the Brand.
● Brand personality needs to be updated with change in user imagery and information
so that the brand remains contemporary and relevant
● The Thumbs up, Marlboro, are classic examples for 'user imagery' contributing to
brand personality & success.
● In fact, some of the brands have become cult brands in which brand personally
played prominent role.
The Big 5 -
perhaps that is what a relationship between a business computer and its customer should
be like. Examples: IBM, HCL, Infosys, Microsoft
4. Pretentious, wealthy, condescending (Sophistication). For some, this would be BMW,
Mercedes, or Lexus (with gold trim) as opposed to the Mazda Miata or the VW Polo. The
relationship could be like one with a powerful boss or a rich relative.Examples:
Mercedes, L’Oreal, Apple, Tanishq
5. Athletic and outdoorsy (Ruggedness). Nike (versus LA Gear), Marlboro (versus Virginia
Slims), and Wells Fargo (versus Bank of America) are examples. When planning an
outing, a friend with outdoorsy interests would be welcome. Examples: Wrangler,
Reebok, Woodland, XUV 500.
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Definition
*Brand positioning is how a product is perceived in the minds of customer
Kotler defines positioning as an “Act of designing the company’s offering and image
to occupy a distinctive place in the minds of target market and how it is
distinguished from that of competitors.
Ries & Trout defines “Positioning starts with the product. But positioning is not what you
do to the product. Positioning is what you do the mind of the prospects
The four components of brand positioning are:
1. Product class
2. Consumer segmentation
3. Consumer perception
These four components of the positioning concept are so closely interwoven that they
must be taken together when we consider the positioning of a brand.
Positioning requires defining our desired or ideal brand knowledge structures and
establishing points-of-parity and points-of-difference to establish the right brand identity
and brand image. Unique, meaningful points-of-difference (PODs) provide a
competitive advantage and the “reason why” consumers should buy the brand.
On the other hand, some brand associations can be roughly as favorable as those
of competing brands, so they function as points-of-parity (POPs) in consumers’
minds—and negate potential points-of-difference for competitors. In other words,
these associations are designed to provide “no reason why not” for consumers
to choose the brand.
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The essence of brand positioning is that the brand has a sustainable competitive
advantage or “unique selling proposition” that gives consumers a compelling reason
why they should buy it. Marketers can make this unique difference explicit through direct
comparisons with competitors, or they may highlight it implicitly. They may base it on
performance-related or non-performance-related attributes or benefits.
Product class:
A product class or product market can be defined as the set of products and brands
which are perceived as substitutes to satisfy some specific consumer need A
brand manager must be ever aware that he may suddenly find himself face-to-face with
an infiltrator from across the historical border
For e.g., brands, like Haldiram and Bengali sweets comfortable position was
suddenly challenged by a brand from another product class altogether. The first
appearance of Cadbury's celebration “Kuch meeta Ho jaaye “came as a rude
shock being launched against synonymous with traditional mithai.
Pond's Cold Cream's comfortable position seems to have been suddenly challenged by
a brand from another product class altogether. Lakme's Winter Care Lotion ad said cold
cream and moisturizer in one"
Oberholser of Young and Rubicam calls this - the choice of product class - the first
'positioning' decision of the advertising strategist.
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Consumer Segmentation
This is the mantra that all marketers must live by: One-size-fits-all doesn’t fit, never did, and
never will. Most of us would be well versed in the theory and significance of consumer
segmentation.
A market is the set of all actual and potential buyers who have sufficient interest in,
income for, and access to a product. Market segmentation divides the market into
distinct groups of homogeneous consumers who have similar needs and consumer
behavior, and who thus require similar marketing mixes. Market segmentation requires
making trade-offs between costs and benefits. The more finely segmented the market,
the more likely that the firm will be able to implement marketing programs that meet the
needs of consumers in any one segment. That advantage, however, can be offset by
the greater costs of reduced standardization. So, the other segment is heterogeneous.
They command customized products, also do have different needs.
What is the profile of the consumers whom our brand will serve and what are their
needs?
One cannot think of 'positioning' a product or a brand except in relation to a particular
target segment.
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understanding of the competing products and their associated attributes. The most
common presentation format for a perceptual map is to use two determinant attributes
as the X and Y axes of a graph,
Perceptual mapping help organization identify gaps in the market.
Before deciding to fill any gaps in the market firms need to ensure that there is likely to
be a demand for a product positioned in the gap
Example –
You will note that only two product attributes have been considered. In this case, they
are ‘to what extent does the consumer consider the product to be high/low in sugar’ and
‘to what extent is a product considered high/low in caffeine’.
The simple combination of these two scores (probably obtained from a consumer
survey) places the product offering onto the map. For example, on this map, the 7-Up
product offering is perceived as having a moderate level of sugar and being relatively
low in caffeine’.
customers that its products belong in the “hygiene care” category, the same category as
some of Antabax’s competitors: Lifebuoy, Protex, and Dettol. Despite the brand’s
longevity, the company fears that customers still don’t see its products as sitting within
the health and hygiene category. By dubbing them “Halal health care products,”
Antabax has reformulated and repackaged its personal care products. The company is
also working on new schemes which aim to increase customer awareness. For
instance, it has introduced a new brand ambassador, Malaysian singer Ziana Zain, who
is involved with the Antabax new range product launches and roadshows. It has also
started an Antabax Facebook contest called “2012—My Attribution Year for Others,”
and has been promoting the Antabax family of products with a “hygiene” concept in
schools. Today, Antabax is the fastest growing brand within the bar and liquid
medicated category.
______________________________________________________________________
______
This question concerns the corporate credentials of the Brand. The prospect needs
to think of the brand in terms of its origin, family tree and stable from which it
comes;
the idea being that this can give a brand competitive advantage
Positioning by corporate identity
Most of the durables use this positioning for e.g., ITC is a corporate brand and Sunfeast uses
the endorser’s name to introduce the new product range. E.g., Bingo, Aashirwaad, Vivel.
This can be a such a strong positioning element that companies who market each
brand under a different name, e.g. Liril, Lux, Rexona, Pears, Lifebuoy) Nevertheless
introduce the corporate credential as a by line: A quality product from Hindustan Lever.
Positioning by Brand endorsement
When a brand becomes successful the marketer can exploit their success as their
strength when they want to enter another product category. For e.g., Nirma washing
powder gave the same name to its detergent bar as its logical after the phenomenon
success. Third entry –toilet soap also bears the same name in this highly competitive
market of toilet soaps, Nirma Salt and Nirma University as well. Godrej also uses its
name when the brand enters different product categories. Godrej soaps, locks, hair dye,
concept furniture.
2) What am I?
• The positioning strategy here revolves around the question of product functional
capabilities.
B. Benefit related
Category related
An important decision in differentiating strategy in an overcrowded market is to take the
same basic product and position it in another category, provided the attributes of the
product to match the consumer expectation.
This is referred as macro positioning or inter-set positioning
Example: Skimmed milk powder
Reconstitute milk
Whitener for tea or coffee
Weight watcher
As per international trends can enter breakfast food category and position your
milk powder as an instant breakfast
Benefit related
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• If you have a good position for your brand sit on it make it your domain
For whom am I?
Demographic Age, income, sex, occupation, education sometimes geographic location
Behavioral for instance in terms of usage volume: heavy, medium, light users
Psychographic - personality, lifestyle, social class
Why me?
Unique attributes
Companies like Nestle, P&G, Nirma will not market a product unless they have
endowed it with some unique attributes. E.g., Pride of cows promises unique benefits of
fresh packed organic milk of cows that gives different experience to consumers.
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When Tuborg beer launched in 2009 in India by introducing a unique pull-off cap,
which lends consumers freedom to enjoy their drink without having to look for a bottle
opener. Tetra packed milk, juices to keep it fresh for long time. Burger king with no
frozen patty.
Positioning by competitors
• Comparison advertising
• Pepsi vs Coke
Consider the example of Ariel that offers a specific benefit of cleaning even the dirtiest of clothes
because of the micro cleaning system in the product.
Colgate offers benefits of preventing cavity and fresh breath. Surf excel- dirt is good – Daag
ache hain.
One way they do it is with ads that reflect the image of a high-quality brand where cost, while not
irrelevant, is considered secondary to the quality benefits derived from using the brand.
Premium brands positioned at the high end of the market use this approach to
positioning.
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Another way to use price/ quality characteristics for positioning is to focus on the quality or
value offered by the brand at a very competitive price.
Lux soap gives better quality at low cost and the wheel detergent or Rin soap which
always focuses on the value addition and price- Rin Bar @ Rs 5/-
Another way is to communicate a specific image or position for a brand is to associate it with a
specific use or application. Example: Vanish is positioned as stain remover- Think Pink
forget stains. Colgate pain out
Often the competition for a product comes from outside the product class. The product is
positioned against others that, while not the same, provide the same class of benefits. Airlines
know that while they compete with other airlines, trains and buses are also viable alternatives.
Dove is positioned as a moisturizer, not a soap.
Dettol soap is positioned as a germ killer
Positioning a product by associating it with a user or group of users is yet another approach.
Dove, Sunsilk GOG.
6. Positioning by Competitor
Competitors may be as important to positioning strategy as a firm’s own product or services.
This approach is like positioning by product class, although in this case the competition is within
the same product category.
For e.g., Audi v/s BMW, Mercedes. Moov compares itself with Iodex.
1. Relevance
Positions that do not focus on benefits that are important to people or reflect the
character of the product will fail. Often in their search for differentiation, marketers seize
upon some attribute in their product which is different but, is of little concern to
customers. This is a waste of time and money. Air India symbolizes graciousness
and high living is an example of a powerful position based on the service
provided by Air India. Lipton Green tea is relevant for weightwatchers.
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2.Clarity
A position should be easy to communicate and quick to comprehend. Difficulty in either
suggests that a position is too fuzzy to be of value to the brand. Utterly-butterly
delicious AMUL established Amul butter over the years and still strongly holds the
dominant position in the market. Surf excel- daag ache hai.
● 3. Distinctiveness
People have few needs that are unfulfilled, and they have many choices to fill the needs they
have. If a brand's position lacks distinctiveness it will be forced to compete on the bases of
price or promotion; expensive strategies that will not build brand equity in the long term . E.g.,
Lot of brands are there to provide online services, but Amazon stands distinct due to its prime
delivery. Bose for noise cancellation headphones.
4. Coherence
Speak with one voice through all the elements of the marketing mix if you wish to
create a strong position If, for example, a brand that is positioned as premium
quality and price appears in an end-aisle "sale" display, its quality image will suffer.
All collaterals marketing and others should reflect and translate the brand's position into the
appropriate form for the media.
5. Commitment
Often people will get nervous when a strong position threatens to ignore or even alienate some
segment of the population as a price of clearly communicating to the desired target. Once a
position is adopted, it takes commitment to see it through, in the face of criticism and pot
shots.
6. Patience
Crest has dominated its market for over thirty years. When it was first introduced positioned
as a cavity fighter its share never rose above 13% for three years. The ADA approval was
the key to launching the brand to over 40% of the market. Had P&G lost patience after two or
three years, someone else would be enjoying the profits of this powerful brand position.
7. Courage
It goes without saying that adopting a strong brand position requires bravery. It is much
easier to defend an appeal to everyone with a rather generic sales pitch. You must believe that
the position makes strategic sense for the brand and then stick to your guns. e.g., Ferrari,
Dyson
Adopting a strong position is not a passive act; rather it is a deliberate attempt to
influence events. It requires ignoring certain business targets in favor of others, and if
successful, will yield growth in sales and profits and a consumer franchise who believe
that your brand has no adequate substitute, even if it costs more.
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Brand Equity
Syllabus :
1. Definition
2. Step in creating Brand Equity.
3. Brand Awareness
4. Perceived Quality
5. Brand Association
6. Brand Loyalty
7. Other Brand Assets
David Aaker defines brand equity as “a set of brand assets and liabilities linked to a brand,
its name and symbol that add to or subtract from the value provided by a product or service
to a firm and / or to that firm's customers”.
Most observers agree that brand equity consists of the marketing effects uniquely
attributable to a brand. That is, brand equity explains why different outcomes result from
the marketing of a branded product or service than if it were not branded. Differences in
outcomes arise from the “added value” endowed to a product because of past marketing
activity for the brand. This value can be created for a brand in many ways. Brand equity
provides a common denominator for interpreting marketing strategies and assessing the
value of a brand. There are many ways in which the value of a brand can be demonstrated
or exploited to benefit the firm (in terms of greater profits or lower costs or both).
The assets and liabilities on which brand equity is based will differ from context to context.
However, they can be usefully grouped into five categories:
1. Brand loyalty
2. Brand awareness
3. Perceived quality
4. Brand associations in addition to perceived quality
5. Other proprietary brand assets—patents, trademarks, channel relationships, etc.
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Perceived
Brand Brand
quality
awarenes Associations
s
Other proprietary
Brand Brand assets
Loyalty
Brand Equity
Name
Symbol
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They can help them interpret, process, and store huge quantities of information about
products and brands. If consumers recognize a brand and have some knowledge about it,
then they do not have to engage in a lot of additional thought or processing of information to
make a product decision. Based on what they already know about the brand—its quality,
product characteristics, and so forth—consumers can make assumptions and form
reasonable expectations about what they may not know about the brand.
They also can affect customers' confidence in the purchase decision (due to either past-use
experience or familiarity with the brand and its characteristics). Potentially, more important is
the fact that both perceived quality and brand associations can enhance customers'
satisfaction with the use experience. To the extent that consumers realize advantages and
benefits from purchasing the brand, and as long as they derive satisfaction from product
consumption, they are likely to continue to buy it.
Knowing that a piece of jewellery came from Tanishq can affect the experience of wearing
it: The user can feel different.
As part of its role in adding value for the customer, brand equity has the potential to add
value for the firm by generating marginal cash flow in at least half a dozen ways.
First, it can enhance programs to attract new customers or recapture old ones.
A promotion, for example, which provides an incentive to try a new flavor or new use will be
more effective if the brand is familiar, and if there is no need to combat a consumer skeptical
of brand quality e.g., Kurkure puffcorn, new flavors of Lays.
Second, the last four brand equity dimensions can enhance brand loyalty.
The perceived quality, the associations, competitive advantage, and the awareness of brand
can provide reasons to buy and can affect use satisfaction
Third, brand equity will usually allow higher margins by permitting both premium
pricing and reduced reliance upon promotions
Fourth, brand equity can provide a platform for growth via brand-extensions Nestle’s
Maggi as we have seen, has been extended into several food products categories, creating
business areas that would have been much more expensive to enter without the Maggi
name. E.g., Maggi’s ketchup, and its flavors, Maggi’s instant noodles and flavors, masala-
emagic.
Like customers, the trade has less uncertainty dealing with a proven brand name that has
already achieved recognition and associations. A strong brand will have an edge in gaining
both shelf facings and cooperation in implementing marketing programs
Finally, brand equity assets provide a competitive advantage that often presents a real
barrier to competitors.
An association e g, Tide is the detergent for tough family laundry jobs may block an attribute
that is important for a given segment. For example, another brand would find it difficult to
compete with Tide for the "tough cleaning job" segment
Brand Awareness
People will often buy a familiar brand because they are comfortable with the
familiarity. Or there may be an assumption that a brand that is familiar is probably
reliable, in business to stay, and of reasonable quality.
For e.g., the use of a large balloon with the word Levi's on it may make the Levi’s
name more salient, but it will not necessarily help improve name awareness.
However, if the balloon is shaped to resemble a pair of Levi's 301 jeans, the link to
the product is provided, and the balloon's effectiveness at creating awareness
is enhanced.
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Brand Recognition
Brand Recall
Top of the mind
Brand Recognition
Brand recognition is at the bottom level of the awareness pyramid When a person can
confirm the experience, the brand is said to have been recognized.
Brand recognition is particularly important under low involvement buying situations especially
when the decision is taken in stores or at the time of purchasing.
In Brand recognition test the ability of the consumers to identify the brand element like
– brand name, packaging, brand symbol is high.
Brand Recall
A more rigorous test of brand awareness is brand recall. Recall related to the ability of the
customer or prospect to retrieve the brand from memory.
In case of recognition the respondent is exposed to brand elements (Symbol, Name, LOGO)
wither, disguised or undisguised. This makes recognition easier
2) Unaided Recall
Aided recall could be gauged by asking the respondent to mention the brands in a particular
product category (e.g., Name a few brands in detergent)
A measure of the number of people who express knowledge of a brand or product when
prompted (brand recognition).
The respondent may name some like Surf, Ariel, Tide, Nirma
The first recalled brand indicated the strongest position of the brand those recalled. It is Top of
the Mind awareness and dominant brand is where the consumer loyalty is proved despite
competitors in the market, where consumer and brand enjoy the attachment, engaged and
loyalty.
Which of the following bottled water brands have you heard of? (Select all that apply)
• Aquafina
• Dasani
• Kinley
• Bislery
Some brands may lie in the memory, yet may not be recalled
For instance, the product attribute (Recall all brands of detergent with blue color)
A brand which could be recalled on without a variety of hints suggests greater brand strength.
For e.g., the brand Surf is recalled in most of the said situations as given below.
Mention the brands which are the soak and rinse type. (Usage form)
SURF EXCEL, ARIEL
Mention the detergent brands which are usually bought in larger quantity
(Quantity of Purchase) SURF, NIRMA, FENA, WHEEL
Mention the brands which are given to servants /maids for washing purposes
(usage situation) NIRMA, FENA, WHEEL
Mention the brands which are used for special garments such as silk, woolen,
special cotton (application) EZEE, Genteel, Surf Excel liquid wash
___________________________________________________________________
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Perceived Quality
Perceived quality can be defined as the customer's perception of the overall quality or
superiority of a product or service with respect to its intended purpose, relative to
alternatives
Perceived quality is a brand association that is elevated to the status of a brand asset
for several reasons
Among all brand associations, only perceived quality has been shown to drive the
financial performance.
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Perceived quality is often a major (if not the principal) strategic thrust of a business.
Perceived quality is linked to and often drives other aspects of how a brand is
perceived.
Perceived quality is usually at the heart of what customers are buying, and in that
sense, it is a bottom-line measure of the impact of a brand identity
Perceived quality will directly influence purchase decisions and brand loyalty,
especially when a buyer is not motivated or able to conduct a detailed analysis
Brand Association
An association and an image both represent perceptions, which may or may not reflect objective
reality
Brand associations are driven by the brand identity - what the organization wants the brand
to stand for in the customer's mind.
A key to building strong brands, then, is to develop and implement a brand identity.
Brand Loyalty:
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Brand Loyalty Pyramid (Pl DRAW THE DIAGRAM OTHERWISE YOU WON’T GET MARKS)
3rd level – Satisfied buyer with switching cost: The third level consists of those who are
also satisfied and, in addition, have switching costs--costs in time, money, or performance
risk associated with switching. To attract these buyers, competitors need to overcome the
switching costs by offering an inducement to switch or by offering a benefit large enough to
compensate. This group might be called switching-cost loyal.
The value of the committed customer is not so much the business he or she generates but,
rather, the impact upon others and upon the market itself.
These five levels are stylized; they do not always appear in the pure form and others could
be conceptualized. For example, there will be customers who will appear to have some
combination of these levels i.e., buyers who like the brand and have switching costs. These
five levels do, however, provide a feeling for the variety of forms that loyalty can take and
how it impacts upon brand equity
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David Aaker defines brand equity as “a set of brand assets and liabilities linked to a
brand, its name and symbol that add to or subtract from the value provided by a product
or service to a firm and / or to that firm's customers”. DO NOT FORGET THIS.
Brand equity refers to the added value that a brand name gives to a product beyond the functional
benefits provided. The brand name becomes an intangible asset if marketers are able to
create brand equity.
Examples: Successful, established brand names, such as Google, Gatorade, and Apple, have an equity
beyond functional value attached to their brand.
1. Price Premium
A basic indicator of loyalty is the amount a customer will pay for the brand in
comparison with another brand offering similar or fewer benefits
For e.g A customer be willing to pay 15 percent more for Coke than for Pepsi.
This is called the price premium associated with the brand's loyalty, and it may be high
or low and positive or negative depending on the two brands involved in the
comparison.
For instance, a customer might be asked, "How much more would you pay to be able to
buy a Toyota Camry instead of a Honda Accord?"
One problem with the price premium is that it is defined only with respect to a
competitor or set of competitors
2. Customer Satisfaction /Loyalty
Satisfaction (or liking) is a direct measure of how willing customers are to stick to
a brand
Another type of measure would be the level of loyalty in terms of the number of
brands, where customers would be asked if they felt loyal to one, two, three, or
more brands, or if they see all brands as pretty much the same.
3. Perceived Quality
Perceived quality is one of the key dimensions of brand equity. It is all about the
values with reference to quality, associated with the brand which the customer
retains in his mind. Perceived quality can be measured with scales such as the
following:
High quality versus inferior quality
Best in category versus worst in category
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This measure, like others, will be sensitive to the brand set that is used as a frame of
reference by the customer
6) Brand Personality
When considering brand personality across products, one option would be to measure a
personality spectrum such as the Big Five.
7. Organizational Associations
Awareness Measures
8 Brand Awareness
This is to measure the presence of the brand in the minds of customers through
recall, recognition , top of the mind, familiarity etc.
Awareness can also affect perceptions and attitudes .
There are a variety of awareness levels, and the appropriate one to use will differ across
brands and product classes, making comparison difficult
There are a variety of awareness levels, and the appropriate one to use will differ across
brands and product classes, making comparison difficult
The study of market share through sales figures not only provides accuracy but
also reflects the brands standing in the minds of the customer .
When the brand has a relative advantage in the minds of customers, market share
should increase or at least not decrease.
In contrast, when competitors improve their brand equity, their share should respond. In
this sense, market share is a good summary measure of brand equity.
This measure deals with the price cuts that can affect the market and give a wrong
picture about the market share of the brand which becomes popular only during a
price cut.
It also measures the distribution network is bad, one may assume the brand is not
performing well, when in reality it is poor distribution and non availability of the brand
which is causing the poor market share
Young & Rubicam (Y &R) a major global advertising agency, who measured brand
equity for 450 global brands and more than 8,000 local brands in twenty-four countries.
c. Esteem - Measures whether a brand is held in high regard and considered the
best in its class. Closely related to perceived quality and the extent to which
the brand is growing in popularity.
Differentiation comes first in the Y &R model. Brand that stands apart from their
competitors, and that provides one basis for brand strength. If there is no point of
difference, a brand's value will be low. A loss in differentiation is usually the first sign
that a strong brand is fading
Differentiation leads.
Relevance comes next. Unless a brand is relevant to a significant segment, it will not
attract a large customer base. Ferrari and Lamborghini are very high in differentiation
but extremely low in relevance; few individuals seriously consider buying one because
these cars are impractical for daily use or are too expensive. There is a strong
association between relevance and household penetration (the percentage of
households that buy the brand).
Esteem and knowledge complete the hierarchy and combine to form the brand stature
construct . Esteem combines perceived quality with perception of a growth or decline in
popularity. Esteem is largely based on perceived quality. But there are brands for which
a decline or growth in popularity affects esteem.
Knowledge indicates that the customer not only is aware of the brand but also
understands what the brand stands for. The true understanding of the brand-is the
culmination of the brand building effort.
Conversely a brand may have high knowledge but low esteem. This means that more
people know what the brand stands for, but relatively few hold it in high regard.
news channel and MTV are rated higher in Knowledge than in esteem and the same is
true with alcohol and cigarette brands
Brands with this profile are usually losing penetration, or they are serving a market that
has a polarized opinion about the brand.
Brand strength
► Brand must possess both differentiation and Relevance to be strong .e.g Disney,
Britannia , Hallmark
Brand Stature
► This strategic indicator is a combination of Esteem and Knowledge and reflects current
Brand performance ( Vodafone ,Pepsi)
► Esteem increases before Knowledge for Chocolates , Soft drinks and other impulse –
purchase products.
On the vertical axis we plot the brand strength – its relevance and differentiation ,
while on the horizontal axis the brand stature – esteem and knowledge
Quadrant II: Here the Brand managers have not been able to realize their the true
potential of the brand, The strategy should be to build the stature of the brand
Quadrant III: the challenge for the brand here would be to continue to be a leader
Quadrant IV: The last quadrant spells “ Danger for the brand as an indicator of eroding
potential. These brands have failed to maintain relevant differentiation ( their core
strength) , If unattended , their stature will also begin to fall. Unless taken to stimulate
the differentiation and relevance , these brand will lose esteem and could eventually
fade out
Brand Recall: A brand (for e.g. HDFC Bank) is said to have recall if it comes to
consumers’ minds when its product class (for e.g. , banking companies ) is
mentioned
The relative power of recall versus recognition is shown in the figure below which shows the
“ GRAVEYARD MODEL”
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The graveyard model was developed by Young and Rubicam Europe under the
guidance of Jim Williams.
In this model, brands in a product class are plotted on a recognition v/s recall graph
The Graveyard Model For e.g., the recall and recognition of each of the brands in the
automobile category could be measured and these measurements could be used to
position each brand on the graph.
One finding consistent across dozens of product classes is that brands tend to follow
the curved line shown in the figure.
There are two exceptions, each of which reveals the importance of recall.
One exception is healthy niche brands, which fall below the line because they are
not known to a substantial group of consumers, and therefore have relatively low
overall recognition. The second exception is the graveyard, an area in the upper
left-hand corner populated by brands with high recognition but low recall. Being
in the graveyard can be deadly:
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Customers know about the brand, but it will not come to mind when considering a
purchase.
Breaking out of the graveyard can be hindered by high recognition, because there is
little reason for people to listen to a story (however new) about a familiar brand.
One point of the graveyard model is that high recognition is not necessarily the mark of
a strong brand-it is associated with weak ones as well
The dynamics of brands located in the upper-middle or upper-right part of the figure can
be important predictors of future brand health.
Movement toward the graveyard is associated with sliding sales and market share.
If, however, the brand is moving away from the graveyard, sales and market share can
be expected to increase.
Thus the graveyard model provides evidence that recall is as important as recognition
EQUITREND
EquiTrend, developed by Total Research, provides a nice contrast to the Y&R Brand Asset
Evaluator measures. EquiTrend is based on a small set of simple yet powerful questions.
EquiTrend is based on measures of three brand equity assets.
The first is salience, the percentage of respondents who have an opinion about
the brand.
The second, perceived quality, is at the heart of EquiTrend. It has been found to
be highly associated with brand liking trust, pride and willingness to recommend .
The third, user satisfaction, is the average quality rating a brand receives among
consumers who use the brand most often. It provides the look at the strength of
brands within their user base.
The three measures are combined into an EquiTrend brand equity score.
Analysis of the EquiTrend data has shown that perceived quality is associated with
premium price. A strong brand commands a price premium, and a price premium is an
important quality cue.
Perceived quality is also known to affect usage. An interesting observation from the
EquiTrend database is that there is nearly a straight-line relationship between the
proportion of consumers using a brand most often and the perceived quality rating of the
brand. When the perceived quality rating fell, so did the usage.
__________________________________________________________________
INTERBRAND
Interbrand, used a very different approach to identify the strongest brands in the world,
and included the business prospects of the brand and the brand’s market environment,
as well as consumer perceptions.
► Leadership. A brand that leads its market sector is more stable and powerful than
that of the second-third-and fourth place brands.
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► Stability. Long-lived brands with identities that have become part of the fabric of the
market are particularly powerful and valuable.
► Market Sales. Brands are more valuable when they are in markets with growing or
stable sales levels and a price structure in which successful firms can be profitable.
► International. Brands that are international are more valuable than national or
regional brands, in part because of economies of scale.
► Trend. The overall long-term of the brand in terms of scales can be expected to
reflect future prospects.
► Support. Brands that have received consistent investment and focused support are
regarded as stronger.
► Protection. The strength and breadth of a brand’s legal trademark protection is critical
to the brand’s strength.
The business-oriented (versus consumer-oriented) view of the Interbrand criteria is
useful in part because it is a step closer to putting a financial value on the brand.
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a ls
Umbrella branding : An umbrella brand can be referred to as a brand when a group of products
possess the same brand name which is known as a family brand or an umbrella brand. Different
products having different images are put together under one major brand or parent brand and are
marketed by the firm.
Umbrella branding does not mean that the whole product portfolio of a firm will fall under one
brand name as company can go for different approaches of branding for different product lines.
A family brand, also called a range brand or umbrella brand, is used in more than one product
category but is not necessarily the name of the company or corporation. E.g., Tata uses different
name for different products
EXAMPLES: Amul is an example of umbrella brand. Amul Butter, Amul Cheese spreads,
Amul Milk, Amul ice creams, Amul ghee all fall under single brand name AMUL.
Godrej is another example of umbrella brand. Products like locks, steel cupboards, office
furniture, electronic typewriters, desktop printers, refrigerators, air conditioners etc. all come
under one parent name GODREJ
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• CONCEPT- A brand leveraging strategy uses the power of an existing brand to expand
the product class or to support a company’s entry into a new product category
• Brand leveraging is an important form of new product introduction because it provides
consumers with a sense of familiarity by carrying positive brand characteristics and
attitudes into a new product category.
• Instant recognition of the brand is established, and consumers with a favorable brand
opinion are likely to try a new product they perceive to have similar quality level and
attributes as their original favorite
• One recipe for strategic success is to create and leverage assets.
• With its awareness, perceived quality, associations and customer loyalty, a brand is
usually the most powerful asset that a firm owns.
• A strategic question, then, is how that brand can be leveraged to create larger and
stronger business entities.
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LINE EXTENTION-
When a variant is added to an existing brand it is called Line Extension.
The variant could be in terms of flavor, package size, color, form, nutritional content or special
additives which targets a sub-set of consumers
The objective is to satisfy different consumer needs or market segments by providing more
variety.
Eg:-Nestle Maggi is available in different flavors like masala, chicken, chinese, curry and Jain
noodles
Nestle has also launched Atta noodles and Cuppa Mania
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Advantages
• Expanding The User Base:
• Brand-loyal customers may view a brand as serving their particular, unique needs—a
basic flavor of Gatorade, for example, may appeal to them. However, customers without
these unique needs may feel that the brand is not for them. Thus, a strong brand may
foster loyalty, but in an exclusionary way.
• A line extension can overcome this obstacle by expanding the brand's appeal. For
example, Cheerios is seen as a health-oriented breakfast staple, but Honey Nut Kellogg's
reaches out to those who prefer pre-sweetened cereals. Several food manufacturers have
introduced low-fat versions of their products, thus breaking down a use barrier that exists
for many health-conscious consumers.
• A line can also be extended by adding a functional benefit to a product - for example,
a convertible version of a car, a squeeze bottle for ketchup or a conveniently located mini-
version of a fast-food restaurant. With these added functional benefits, the brand is in a
position to attract new customers. The result of an on-target line extension can be a new
but highly loyal segment that is resistant to competitive offerings.
• Providing Variety
• A line extension can also give loyal users a way to enjoy variety without switching
brands. For instance, And a Charcoal or clove version of Colgate gave consumers the
chance to try a new toothpaste craze without buying a new brand
• Energizing A Brand
• A line extension can energize a brand, making it more relevant, interesting, and visible. In
doing so it can create a basis for differentiation, make communication efforts more
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effective, and stimulate sales. Diet Coke helped to add youth, vitality, and visibility to
the Coke image. In general, line extensions—especially if they add products that appeal
to consumers—will create an energy that can substantially strengthen brand equity.
• Managing True Innovation
• Line extensions provide an explicit channel for product innovations that can be a
powerful vehicle for obtaining competitive advantage.
• Glade Air Fresheners began with aerosols and have since added solid forms (for
continuous freshening), clip-ons (for the car), and a variety of more cosmetic packages.
Without a line extension option, these innovations might not have been created.
• Blocking Or Inhibiting Competitors
• A line extension does not have to be a financial block-buster in order '" provide value for
the firm. Especially for leading brands, line extensions can be strategically worthwhile
even when they do not achieve high rates of return. Line extensions can block such
competitive moves. The seemingly endless line extensions of Tide , Surf excel, Cadbury’s
make more sense.
Limitation
• At times, a line extension in related product category can also fail due to poor experience.
• Colgate Palmolive failed in cosmetic product category.
• But it was a worthless experience for consumers, resulted reduction in brand loyalty.
BRAND EXTENSION
Existing Brand, New Product (Brand Extension)
Existing Brand, Existing Product (Line Extension)
When an existing brand name is used to introduce a new product in a different/ related product
category.
Brand extensions— that is, extending the brand into other product classes—are the ultimate way to
leverage
The high failure rate of new products is well documented. Markets analysts estimate that perhaps
only 2 out of 10 products will be successful .
Wipro which was originally into computers has extended into shampoo, powder, and soap.
Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of chocolate.
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Eg: Ponds => Talc, Cold Cream, Facewash, Moisturizing lotion, etc.
Eg: Horlicks=> Nutribar, Foodles, biscuits
Eg: Catch => Salt, Black Salt, Pepper, spices etc.
Eg: Kingfisher => Beer, Airlines, Mineral water, Training Academy
Eg: Dabur=> Amla Hair Oil, Chawyanprash, Pudin Hara
Note: Ponds Toothpaste was a failure. Dettol beauty soap was a failure too.
• Range Brands
• A range brand is one that creates an identity that works across product classes. A range
brand is sometimes called a mega-brand.
• It is defined as a brand that is used in more than one product category but is not
necessarily the name of the company or corporation itself. Brand spread across a range of
product categories.
• E.g.,: Nestle uses Maggie as a range brand in instant food category
LIMITATIONS
• At times, the brand cannot be stretched to unrelated categories E.g.,
Amul could not be stretched to Edible Oil
E.g., Britannia cannot be stretched to Shoes.
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customers are already aware of the brand and facilitate the adoption of
extension.
• Increase the probability of gaining distribution & trial Because of the
potentially increased consumer demand resulting from introducing as an
extension, it may be easier to convince retailers to stock and promote an
extension.
• Increase Efficiency of promotional expenditure- The introductory
campaign does not have to create awareness of both the brand and the new
product but instead can concentrate on only the new product itself. Reduce
cost of introductory and follow –up marketing programs
• In 1998 Jaguar introduced its first substantially improved automobile model
in 16 years, adopting new technology to improve reliability although still
retaining the classic Jaguar look. The resulting marketing program, which
included a lavish ad campaign, increased demand for all new Jaguars. Even
older Jaguars found the resale market value enhanced.
only print ad in the leading newspaper works for the brand Same is the case of
Mercedes-Benz. The old classic models are high in value. The
Advantages:
• Avoid cost of developing a new brand-Developing new brand elements is
an art and science. To conduct necessary consumer research, employing
highly skilled personnel to design high quality slogan, logo, brand names
etc. can be quite expensive and no assurance of success.
• Allow for packaging and labeling Efficiencies-Similar to virtual identical
packages and labels for extensions can result in lower production costs and
of co -ordinated properly more prominence in the retail store by creating a
billboard effect. e.g., Coca-Cola soft drink.
• Permit consumer Variety seeking By offering customers a portfolio of
brand variants within a product category, consumers who need a change due
to boredom, satiation or whatever – can switch to a different product without
leaving the brand family.
• Clarify brand meaning- Extensions can help clarifying the meaning of the
brand to consumers and can define the markets in which they compete. e.g.,
Colgate is for dental hygiene. Philips is best in electronics.
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c n and call
Concept
• Brand stretch (also known as vertical extension) is a proven way for
brands to grow by extending into new product or service areas. It is a
major potential growth avenue for any companies with strong brands.
• The potential for brand stretch depends on the brand positioning in
customers minds. E.g. Disney. From cartoons to theme parks to movies.
• Yet vertical extensions are also susceptible to many of the disadvantages
of brand extensions. A vertical extension to a new price point, whether
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• For example, Cadbury Dairy Milk launched its sub- brand SILK which
is smoother and silkier in taste and texture. The core identity of the
brand, is ‘like silk to touch and taste,” clearly confirms the strategy of
moving the brand up successfully. E.g., Parle Platina.
• Another strategy that a brand adopts for moving the brand up is by
introducing ‘limited edition’, special edition for example ‘ Mont Blanc
pens fall in the is category . For instance, its writer’s edition was based
on famous authors such as Charles Dickens , Oscar Wilde, etc.
• A key problem is whether a brand can be moved up . brands whose
identities are inconsistent with an upscale entry will find upward move
more difficult .For e.g., Nestle Maggi launched a new variant Maggi
macaroni in 1997 and it failed as it did not suit the taste buds of
customers.
• Damage to the core brand as consumers may feel that premium charged
to them was not justified
• Increase in volume may not justify the reduction in price
• Reduction in margins of trade channel partners.
• E.g., Dell Vostro, Dell Inspiron, Dell XPS
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Co-branding
• Co-Branding also called-Brand Bundling or Brand Alliance; is when two or
more existing brands are combined into a joint product or are marketed
together in some way.
• It can be termed as marketing partnership between two brands.
• The objective is to combine the strength of two brands , in order to
increase the premium consumers are willing to pay.
• It makes the co-branded product more resistant to copying.
• It combines the different perceived properties associated with these
brands to make a single product.
• Co-brand only if the company has same ethics, core values, and common
vision.
• Choose co-branding only with brands whose products are best-in-class
status.
• Co-brand if the partner and company’s brand share the same target
audience.
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Advantages
• Branded ingredients are often seen as a signal of quality.
• There is uniformity in quality of ingredient brand which helps maintain
consistency in quality of primary brand.
• Ingredient brands can become industry standards and consumers would
not buy a product that does not contain the ingredient brand.
Composite Branding
• The bundling of two brands to provide an enhanced customer benefit or
reduced cost.
• Composite co-branding refers to use of two or more renowned brand
names in a way that can collectively offer a distinct product/service that
could not be possible individually.
E.gs.,
Nokia/ Samsung/ Apple with Vodafone
Airtel with iPhone
Coca-Cola with McDonalds
Audi Cars with Bang & Olufsen Sound System.
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Advantages of Co-branding
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Disadvantages
BRANDING STRATEGIES
▪ Multi Product Branding
▪ Multi Branding
▪ Mix Branding
▪ Brand Licensing
▪ Brand-Product Matrix
▪ Brand Hierarchy
▪ Generic branding
▪ Brand building blocks
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CONCEPT
Brand strategy is how, what , when, and to whom you plan on communicating your
product or service.
Having a clear and concise strategy leads to stronger overall brand equity-
how people feel or perceive your product, or how much they are willing to pay
for it.
e.g., Apple sell phones, laptops and other items because they are easy to use, fast
and with trusted technology, that people believe.
Unique branding is a reliable safety measure more and more companies chose to
go for.
WHY STRATEGY IS IMPORTANT?
▪ Strategy is important for the company which produces more than one product.
▪ E.g., Brand X manufactures Brand X laptop, Brand X mobiles, Brand X
music systems. If the quality goes down with the Brand X music system ,
the competitors will produce more strong brands that will result into the
drop of sales and the failure of the brand. This will affect the Brand X
and will results into failure of the brand.
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➢ BRAND ARCHITECTURE
• The firm’s brand architecture provides general guidelines about its
branding strategy and which brand elements to apply across all the
different products sold by the firm.
• Two key concepts in defining brand architecture are brand portfolios and
the brand hierarchy.
• The brand portfolio includes all brands sold by a company in a product
category. We judge a brand portfolio by its ability to maximize brand
equity: Any one brand in the portfolio should not harm or decrease the
equity of the others.
• The brand hierarchy displays the number and nature of common and
distinctive brand components across the firm’s set of brands.
EXAMPLES
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CONCEPTS
▪ Branded House, which is when a parent brand rules the look and feel of
any sub-brands that fall under it. Google is a good example here. Puts
the focus on the main brand image, only small variations or descriptors
for sub-brands (e.g., different products or parts of the business).
▪ House of Brands. Unlike the branded House, here, each brand will have a
distinct personality. Just take Unilever, for instance.
▪ Endorsed brands. These are something of a middle ground between the
top two. They are visibly endorsed by the parent brand, but they still
have their distinct brand personality.
Sub-brands: Combined the main brand with strong sub-brands
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ADVANTAGES
▪ 1. Can leverage brand equity to create product and recognition
▪ 2. Can result in significant economies of scope since one advertising
campaign can be used for several products. E.g., Amul ad campaign
‘The taste of India’.
▪ 3. Facilitates new product acceptance because potential buyers are
already familiar with the same.
▪ 4. Makes possible for line extension
▪ 5. Sub branding combines a family brand with a new brand.
▪ 6. Allows for brand extension ; even to enter a completely different
product class.
LIMITATION
▪ Too many uses for one brand name can dilute/ or weaken the meaning
▪ The products are not treated as individuals , hence there is not adequate
focus on the product’s unique characteristic
▪ In the 1980s, nobody considered the branding of fast-moving consumer
goods under the category of apparel, other than as corporate giveaways
or inexpensive T-shirts and baseball caps. Yet, Coca-Cola agreed a
merchandising deal to create an upmarket fashion line of Coca-Cola
Clothing designed by a young, unknown Tommy Hilfiger.
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▪
o The downside of multi-product branding is that it will spread your
brand thin. When a company spreads their brand thin the result is often
a weaker brand image.
o The more a brand name is used on products of a different class, the
greater the diluted effect on brand equity.
o In order to avoid the negative effects of Multiproduct branding,
companies use sub-branding.
o Sub-branding allows a company to use the big brand name while giving
each product a little brand of its’ own. o For example, Gillette’s Mach
3 razor for men. The Gillette brand is clearly marked on the package, so
consumers associate the new Mach 3 with Gillette quality. This gives the
Mach 3 a sub-brand and distinguishes it from other Gillette razors.
o Gillette also introduced Fusion Pro-glide series, the most expensive of all
razors ever.
MULTI-BRANDING
▪ Multi-branding is used when a product or product line is targeting
different markets. This kind of branding is used favorably within in the
automobile market. General Motors operates Manufacturing plants in 8
countries. Its four core automobile brands are Chevrolet, Buick, GMC
and Cadillac.
▪ GM defence produces military vehicles for the U.S. Department of
Defense and the Department of State. OnStar provides vehicle safety,
security and information services. ACDelco is the company's auto parts
division. The company provides financing via GM Financial . The
company is developing self- driving cars through its majority ownership
in Cruise LLC.
▪ In short, the multi-branding strategy allows businesses to gain market
share through assessing external opportunities in order to define a
profitable market segment.
EXAMPLES
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BMW values attract only 20 per cent of the premium car buyers
worldwide. BMW refuses to dilute its brand and in order to grow it
went international. It also bought the Mini and Rolls-Royce brands.
▪ The other way in which a company can grow is by creating new brands to
meet the demand that existing brands cannot satisfy. But it takes
courage to launch and position new brands. It takes courage because, at
a time when extensions are the order of the day, it is difficult to admit
that even a mega-brand has its limits.
MULTI BRANDING STRATEGY
The depth of branding strategy concerns the number and nature of different
brand marketed in the product class sold by a firm.
o Why might a firm have multiple brands in the same product category?
The primary reason relates to market coverage. Although , multiple
branding was originally pioneered by General Motors (1908) ,Procter
& Gamble is widely recognized as popularizing the practice.
The main reason to adopt multiple brands is to pursue multiple brand
segments.
▪ These market segments may be based on all types of consideration –
different price segments, different channels of distribute, different
geographic boundaries and so forth.
▪ In many cases , multiple brands have to be introduced by a firm because
any one brand is not viewed equally favorably by all the different
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▪
market segments that the firm would like to target . Some other reason
for introducing multiple brands in a category –include the following
▪ 1. To increase shelf presence and retailer dependence in the store
▪ 2. To attract consumer seeking variety who may otherwise switch to other
brands
▪ 3. To increase internal competition within the firm
▪ 4. To yield economies of scale in advertising , sales, merchandising and
physical distribution
• e.g., HUL detergent powder- Surf Excel, Wheel, Rin
▪ Advantages
▪ 1. The firm can distance products from other offerings in markets
▪ 2. The image of one product is not associated with other products the
company markets
▪ 3. The products can be specifically targeted.
MIX- BRANDING
▪ Mixed branding — to clarify — is a strategy of producing the same good
but marketing it to different segments under different names. The
segmentation does not have to be price-related. The great example is
Toyota and Lexus. Toyota in the U.S. was perceived as a "value" brand
and Lexus targeted the more expensive market.
▪ A company has a multi-brand strategy when their portfolio of products
has different brands or names. For example, Nestlé has a multi-brand
strategy with over 2000 different brands including KitKat and Nespresso. ▪
Other examples include:
▪ Microsoft and Xbox – Microsoft was considered a "serious corporate"
brand, Xbox was new and crazy.
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▪ To elaborate…
▪ Toyota is the parent company of Lexus, but the two brands serve very
different markets within the automotive industry because of the
significant difference in their branding.
▪ Toyota has long been established as a cost-effective automotive brand
before introducing Lexus. The parent company was known to be
focused on families that needed reliable yet economical vehicles that
helped them accomplish everything in their busy schedules.
When Toyota wanted to break into the luxury car market, it was clear
that it would be challenging to attract interested luxury buyers with the
family-oriented value brand they had successfully cultivated. To break
away from the brand identity of the parent company, it created Lexus,
which was branded using sleek, contemporary fonts and colours.
CO-BRANDING
• Co-Branding also called-Brand Bundling or Brand Alliance; is when two
or more existing brands are combined into a joint product or are
marketed together in some way.
• It can be termed as marketing partnership between two brands.
• The objective is to combine the strength of two brands , in order to
increase the premium consumers are willing to pay.
• It makes the co-branded product more resistant to copying.
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▪
• It combines the different perceived properties associated with these
brands to make a single product.
• Co-brand only if the company has same ethics, core values, and
common vision.
• Choose co-branding only with brands whose products are best-in-class
status.
Co-brand if the partner and company’s brand share the same target
audience
Advantages
• Branded ingredients are often seen as a signal of quality.
• There is uniformity in quality of ingredient brand which helps maintain
consistency in quality of primary brand.
• Ingredient brands can become industry standards and consumers
would not buy a product that does not contain the ingredient brand.
BRAND LICENSING
▪ Brand Licensing is a contractual agreement whereby a company allow
another firm to use the brand name, patent, trade secret or other
property for a royalty or a fee.
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▪
The brand product matrix is used to categorize the product and
branding strategy of a firm. One useful tool is the brand product matrix
a graphical representation of all products sold by the firm .
▪ The matrix or Grid has the brands of a firm as rows and the
corresponding products as columns (see Figure) HUL
THE ROWS OF THE MATRIX REPRESENTS BRAND –PRODUCT
RELATIONSHIPS AND CAPTURE THE BRAND EXTENSION
STRATEGY OF THE FIRM IN TERMS OF THE NUMBER AND NATURE
IF PRODUCTS SOLD UNDER THE FIRM’S BRANDS.PL. DRAW THIS IN
EXAM
Pears x x x
Dove/Lux x
Breeze X X X x
L’oreal /Sunsilk X x
Wheel/surf excel/Rin X X x
Domex X X X x x
FairLovely X X X
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In other words, what is the level of awareness like to be and what are
the expected strength favorability and uniqueness of brand associations
of the particular extension product.
▪ At the same time how does the introduction of the brand extension affect
the prevailing levels of awareness the strength, favorability and
uniqueness of brand associations or overall response ( judgment and
feelings ) forward the parent brand as whole?
Brand line consist of all product Product line consists of all brands of
original as well as line & Category a single family brands or individual
extension sold under a particular brand that has been line extended
brand
Brand Mix i.e set of all brand lines Product Mix i.e. set of all product
that a particular seller makes lines that a particular seller makes
available to buyers available to buyers
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i.e has to be and extension strategy i.e. has to be and portfolio strategy
characterized by breadth characterized by depth
BRAND HIERARCHY
▪ A brand hierarchy is a means of summarizing the branding strategy by
displaying the number and nature of common and distinctive brand
elements across the firm's products, revealing the explicit ordering of
brand elements.
▪ For example, a Dell Inspiron 17R notebook computer consists of three
different brand name elements, “Dell,” “Inspiron,” and “17R.” Some of
these may be shared by many different products; others are limited.
Dell uses its corporate name to brand many of its products, but Inspiron
designates a certain type of computer (portable), and 17R identifies a
particular model of Inspiron (designed to maximize gaming
performance and entertainment and including a 17inch screen).
▪ There are different ways to define brand elements and levels of the
hierarchy. Perhaps the simplest representation of possible brand
elements and thus potential levels of a brand hierarchy—from top to
bottom—might be as follows
▪ Corporate Brand ( Maruti Suzuki) or HUL
▪ Range Brand (Swift) - DOVE
➢ CORPORATE BRAND
• The highest level of the hierarchy technically always involves one
brand—the corporate or company brand.
• For legal reasons, the company or corporate brand is almost always
present somewhere on the product or package, although it may be
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▪
the case that the name of a company subsidiary may appear
instead of the corporate name
• Corporate branding is the practice of using a company's name as a
product brand name.
• It is an attempt to use corporate brand equity to create product
brand recognition. It is a type of family branding or umbrella
brand. Disney, for example, includes the word "Disney" in the
name of many of its products
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EXAMPLE
➢ RANGE BRAND /FAMILY BRAND
▪ At the next-lower level, a range / family brand is defined as a
brand that is used in more than one product category but is
not necessarily the name of the company or corporation itself.
Because a family brand may be distinct from the corporate or
company brand, company level associations may be less
salient.
▪ If the corporate brand is applied to a range of products, then it
functions as a family brand too, and the two levels collapse to
one for those products.
▪ Brand spread across a range of product categories for e.g. Dove,
Amul, Cadbury’s.
▪ Some other notable family brands for companies include
Purina and Kit Kat (Nestlé); Mountain Dew, Doritos, and
Quaker Foods (PepsiCo); and Oreo, Cadbury, and Maxwell
House (Kraft).
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➢ INDIVIDUAL BRAND
• Individual branding, also called individual product branding or
multi-branding, is the marketing strategy of giving each product in
a portfolio its own unique brand name.
• This contrasts with family branding, corporate branding, and
umbrella branding in which the products in a product line are given
a single overarching brand name. The advantage of individual
branding is that each product has an image and identity that is
unique.
• This facilitates the positioning of each product, by allowing a firm
to position its brands differently.
• Examples of individual product branding include Procter & Gamble,
which markets multiple brands such as Pampers, and Unilever,
which markets individual brands such as Dove
➢ MODIFIER BRAND
▪ Regardless of whether marketers choose corporate, family, or
individual brands, they must often further distinguish brands
according to the different types of items or models. A modifier is
a means to designate a specific item or model type or a
particular version or configuration of the product. Land O’Lakes
offers “whipped,” “unsalted,” and “regular” versions of its
butter. Yoplait yogurt comes as “light,” “custard style,” and
“original” flavors.
▪ Adding a modifier often can signal refinements or differences
between brands related to factors such as quality levels (Johnnie
Walker Red Label, Black Label, and Gold Label Scotch whiskey),
attributes (Wrigley’s Spearmint, Doublemint, Juicy Fruit, and
▪
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Know the value propositions for each brand that has a driver
role .Consider emotional and self- expressive benefits as well as
functional benefits.
3. Brand position
▪ For each brand, have a brand position that will provide clear
guidance to those implementing a communication program.
▪ 4. Execution- Execute the communication program so that it not
only is on target with the identity and position but achieves
brilliance and durability.
▪ Generate alternatives and consider options beyond media
advertising.
▪ 5. Consistency over time- Have a goal, a consistent
identity ,position and execution over time.
▪ Maintain symbols, imagery and metaphors that work.
▪ 6. Brand system- Make sure the brands in the portfolio are
consistent and synergistic.
▪ Know their roles. Have or develop silver bullets to help support
brand identities and positions . A silver bullet is a brand or
subbrand that positively influence the image of another brand.
▪ 7. Brand leverage.
▪ Extend brands and develop co- branding programs only if the
brand identity will be used and reinforced .
▪ Identify range brands and, for each , develop an identity and
specify how that identity will be different in disparate product
contexts .
▪ 8.Tracking brand equity .
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Global Brands
• Global brands were defined as brands that were identical
everywhere in all but brand name or would be evolving in that
direction, guided by the same brand identity involving five
components—the benefits it provides, its values and
personality, the reasons to believe, its discriminators, and its
brand essence. E.g., Coca-Cola, Apple
• A number of well-known global brands have derived much of
their sales and profits from non-domestic markets for decades,
including Coca-Cola, Shell, Bayer, Rolex, Marlboro, Pampers,
and Mercedes-Benz, to name a few. Apple computers, L’Oréal
cosmetics, and Nescafé instant coffee have become fixtures on
the global landscape. Their successes are among the forces
that have encouraged many firms to market their brands
globally.
Building global brand equity: emergence of global brands
▪
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• Rebranding
Rebranding is the process of changing the corporate image of an
organization. It is a market strategy of giving a new name, symbol,
or change in design for an already-established brand. The idea
behind rebranding is to create a different identity for a brand, from
its competitors, in the market.
Rebranding involves changing your brand identity completely, such
as by implementing a new logo or changing the name of your
company. Rebranding is often done if the company is failing or has
experienced bad press. It’s a way for a company to get a fresh start.
Corporate rebranding is a time- and resource-intensive process that
demands a company’s total commitment to succeed
Initial reaction to rebranding is almost always negative, simply
because people resist change. Sometimes, however, an especially
harsh reception will cause a firm to abandon a new name.
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Say the word Dunkin, and you automatically think about donuts.
Although that’s a symbol of strong brand awareness, the brand
decided to drop the word "donuts" in a rebrand to modernize
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• Revitalizing
In virtually every product category are examples of once prominent
and admired brands that have fallen on hard times or even
completely disappeared. Nevertheless, several brands have managed
to make impressive comebacks in recent years, as marketers have
breathed new life into their customer franchises. E.g., Kodak
pharmaceuticals. Lacoste.
For a successful turnaround, brands sometimes must return to their
roots to recapture lost sources of equity.
The Brand Revitalization is the marketing strategy adopted when
the product reaches the maturity stage of product life cycle, and
profits have fallen drastically. It is an attempt to bring the product
back in the market and secure the sources of equity i.e., customers.
Revitalization strategies obviously run along a continuum, with pure
back-to-basics at one end and pure reinvention at the other. Many
campaigns combine elements of both.
Example: Mountain Dew, A Pepsi product, was launched in 1969
with the tagline “Yahoo Mountain Dew” that flourished in the
market till 1990. After that the sales of mountain dew declined due
to which it was re-positioned, its packaging was changed, and the
tagline was changed to “Do the Dew”. It targeted the young males
showing their audacity in performing the adventurous sports. This
led the Mountain Dew to the fifth position in the beverage industry.
Reasons for revitalizing…
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• Every brand or product has its life cycle which spans from the
time it is launched to the time it exits from the market. This
cycle covers five stages, namely product development,
introduction, growth, maturity and decline. The life cycle of
each brand or product is different, and different advertising
strategies should be adopted at different stages to suit the
marketing targets and market environment in order to achieve
the best marketing results.
• Stages:
• Product Development -- This is the stage of design, production
and research carried out by a company to ensure that its
products can meet consumer needs through sufficient market
survey. The company will also improve its products in the light
of market response and gradually build up its brand.
• Introduction -- During this stage, the product is introduced
into the market and publicity campaigns are launched to
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• The film rolls made by Kodak. After the idea was generated
and tested as a good product (the product development stage),
Kodak launched the product on the market, this is the
introduction stage. After that, people discovered for the first
time this type of product, and they start liking it and buying it,
this is the growth stage. Then, when the product was the most
popular, that was the maturity stage. During the period of
time, Kodak was the most profitable and sales started
declining. And finally, as competitors introduced digital
cameras, consumers didn’t need film rolls anymore, that was
the end of this type of product, this is the decline stage.
• The film rolls made by Kodak. After the idea was generated
and tested as a good product (the product development stage),
Kodak launched the product on the market, this is the
introduction stage. After that, people discovered for the first
time this type of product, and they start liking it and buying it,
this is the growth stage. Then, when the product was the most
popular, that was the maturity stage. During the period of
time, Kodak was the most profitable and sales started
declining. And finally, as competitors introduced digital
cameras, consumers didn’t need film rolls anymore, that was
the end of this type of product, this is the decline stage.
Customer, Industrial, Retail and Service Brands:
• Customer branding is a process in which a customer or
customers define, label, and seek to purchase an otherwise
undifferentiated or unbranded product. The customer(s) can
be anywhere along the value chain and may be intermediate,
industrial or end-user customers.
• Customer branding may have been historically very common
but is probably less common in the modern era. However as
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Service brand
• Unlike products, which are easy to brand in visible and
tangible ways, services are a little more challenging to brand.
But that doesn’t mean brands can’t do it effectively—they just
have to be willing to think outside the box.
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CASE STUDY
TYPE 2
In this sample case study question no 2 is POSITIONING STRATEGY.
2) What am I (Category related positioning , Benefit related ,Positioning by usage and time ,Price
quality positioning
3) For whom am I ( Demographic, Psychographic and Behavioral )
4 )Why me ( Unique attributes ,Positioning by competitors )
CASE STUDY
Food Bazaar has become a trusted name in the branded retail segment was launched in 2002.
It is a chain of large supermarkets with a difference where the best of Western and Indian values
have been put together to ensure consumer satisfaction and comfort while shopping.
The western values of convenience, cleanliness and hygiene are offered through pre-packed
commodities and the Indian values of ‘see-touch-feel’ are offered through the bazaar-like
atmosphere created by displaying staples out in the open.
The best of everything offered with a seal of freshness and purity will definitely makes final
buying decision a lot easier. They have been able to achieve this in a very short time
1) Analyze the current brand personality of food bazaar using the brand
personality scale
2) What position strategy have they followed?
Competence
• Reliable (reliable, hard- working, secure)
• Successful (successful, confident)
Sincerity, Excitement and Competence are the personalities of the brand . It’s not only
a young brand (2002 ) but also offers both western convenience and Indian values
makes the brand family oriented , unique , contemporary , reliable and successful.
2 ) Positioning strategy of Food bazaar
Food Bazaar has followed the positioning strategy based on the cornerstone of position
strategy.
• Who am I ?
• What am I?
• For whom am I ?
• Why me ?
A ) Who am I ?
Food Bazaar is a part of the Future group launched in 2002 . B)
What am I ?
1. Category related positioning:
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Food bazaar gives the advantages of Quality, Range and Price associated with
large format stores and also the comfort of being able to see, touch and feel the
products. The Indian consumer likes to "See, Touch and Feel" the wheat, rice,
pulses, fruits and vegetables before making the final buying decision. Which other
super markets don’t offer
3. Positioning by usage and time
It offers the western values of convenience, cleanliness and hygiene through pre
packed commodities .
4. Price quality positioning
Food bazaar offers price less than MRP and regular discounts with super market
experience
C) For Whom am I ?
Demographic – a)
Gender: All
b) Age: 20 years and above
c) Income: Average Income Group of Rs 30000 per month and above
Psychographic
a) Lifestyle : Consumers who prefer a blend of a typical Indian Bazaar and
International supermarket atmosphere
Behavioral
a) Indian consumer who like convenience , cleanliness , hygiene and the See, Touch
and Feel shopping experience
D) Why me ?
Unique Aspect :
One shop stop experience with blend of a typical Indian Bazaar and International
supermarket atmosphere.
3) Functional and emotional benefit of food bazaar
Functional Benefit
The most visible and common basis for a value proposition is a functional benefit—
that is, a benefit based on a product attribute that provides functional utility to the
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customer. Such a benefit will usually relate directly to the functions performed by the
product or service for the customer.
Functional Benefits of food bazaar is: Price less than the MRP, Regular discounts,
Super market experience. One stop shop experience. In other words customers get
the supermarket experience
Emotional benefits
When the purchase or use of a particular brand gives the customer a positive
feeling, that brand is providing an emotional benefit. It adds richness and depth to
the experience of owning and using the brand
At food bazaar the emotional benefit the customer experience is the “ Touch and feel:
experience as Indian customers are used
Solution
Paper Boat is a brand of traditional Indian juices and drinks. The brand
has an emotional connect with its consumers and has created an
enjoyable moment with its unique blend of ‘Drinks and Memories’
Today market’s are flooded with different brands of Ice cream and Ice
candy with soft serves such as Mango with vanilla , Raspberry with vanilla
etc.
Paper Boat strategy to extend its brand portfolio by launching Ice candy
will be a big boon to lactose tolerant consumers.
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As the brand wishes to extend its portfolio by launching unique flavored ice
candy ...the following are the suggestions:
I ) Line extension
Line extension is when the parent brand is used to brand a new product
that targets a new market segment within a product category currently
served by the parent brand.
A line extension often involves a different flavor or ingredient variety, a
different form or size, or a different application for the brand
Paper Boat can leverage its brand by creating the following line
extensions :
A sugar free variety can be introduced for the niche segment of consumers
c) Packaging: Small packaging worth Rs 3/- can be introduced as lot of
consumers have 3 to 4 Britannia Marie biscuits as a Tea Time snack.
Dieticians often recommend 3 to 4 Britannia Marie biscuits as an evening
snack. This small pack will be a boon to consumers who are on the move .
2) What is the current personality? Create a new personality using the Big
Five.
The Brand personality scale has Five core dimensions such as Sincerity, Excitement,
Competence, Sophistication and Ruggedness.
The Current brand personality is Sincerity:
Sincerity:
Down- to Earth: Family – oriented, small town, Conventional
Honest: Real, Sincere, caring
Wholesome: Wholesome, original, ageless
Cheerful: cheerful, sentimental, friendly, warm
The new brand personality that we can create is Excitement.
Excitement:
Daring: daring, trendy, exciting
Spirited: spirited, cool, young, lively
Imaginativeu: imaginative, unique, fun
Up-to-date: up-to-date, independent, contemporary, innovative
The new brand personality with new flavors, variants and size will make the young and
lively. The sugar free version would make the consumers up-to-date and in line with the
current trend of being health conscious.
3.Who would you like to use as a Brand Ambassador based on your new brand
personality?
Based on the current personality, we would like to introduce Anushka Sharma as the
new Brand Ambassador for Britannia Marie Gold,
She is lively, cool, young, adventurous and trendy. She is fit and likes to stay active.
She would work well for a brand like Britannia Marie Gold as the brand is positioned for
masses. Also she is well accepted by both genders.
So, the new Brand personality of Britannia Marie Gold that we have created gets
leveraged with the Brand ambassador Anushaka Sharma.
Type 2
Food Bazar has become a trusted name in the branded retail segment .They have
been able to achieve this in a very short time
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1) Analyze the current brand personality of food bazar using the brand
personality scale
2) What position strategy have they followed?
3) What functional and emotional benefit does it offer?
Likely Solution
Future group launched Food bazar in 2003. It’s a supermarket chain with a difference.
1) Analyze the current brand personality of food bazar using the brand personality
scale
The Brand personality scale has Five core dimensions such as Sincerity,
Excitement, Competence, Sophistication and Ruggedness.
The Current brand personality is Sincerity, Excitement and Competence
Sincerity
• Down- to Earth: Family – oriented
• Honest: Real, Sincere, caring
• Wholesome: Wholesome, original
• Cheerful: cheerful, sentimental, friendly, warm
Excitement
• Daring (daring, trendy, exciting)
• Spirited (spirited, cool, young)
• Imaginative (imaginative, unique)
• Up-to-date (up-to-date, independent, contemporary, innovative )
Competence
• Reliable (reliable, hard- working, secure)
• Intelligent (intelligent, technical, corporate)
• Successful (successful, confident) 2) What position strategy have
they followed?
Food Bazar has followed the positioning strategy based on the cornerstone of
position strategy: What am I?
• The positioning strategy here revolves around the question of
product functional capabilities.
2. Category related positioning:
3. Benefit related
4. Positioning by usage and time
5. Price quality positioning
Food bazar has positioning strategy is based he core concept of Food Bazaar is
actually very simple at heart.
It is to create a blend of a typical Indian Bazaar and International supermarket
atmosphere with the objective of giving the customer all the advantages of
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Quality, Range and Price associated with large format stores and also the
comfort of being able to see, touch and feel the products.
The Indian consumer likes to "See, Touch and Feel" her wheat, rice, pulses, fruits
and vegetables before making her final buying decision.
Food Bazaar is offering the Indian consumer precisely this - "See-Touch-Feel"
factor. At other super markets, the consumer is deprived of this factor – where
only pre packed staples, foods & vegetables are offered.
Food Bazaar offers the Indian consumer the best of Western and Indian values.
The western values of convenience, cleanliness and hygiene are offered through
pre packed commodities and the Indian values of "See-Touch- Feel" are offered
by displaying staples out in the open, all at very economical and affordable prices
without any compromise on quality.
Truly the Indian consumer is now agreeing with Food Bazaar "Ab Ghar Chalaana
kitna Aasaan".
Ab Ghar Chalaana Kitna Aasaan! Yes! That’s the positioning platform of Food
Bazaar.
Type 2:
“Red Bull” the makers of the ‘energy drink’ want to launch a vitamin packed ‘nutritive
drink ‘for “sports persons.”
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Concepts
4. Extended identity - The extended identity Includes elements that provide texture and
completeness. It fills in the picture, adding details that help portray what the brand stands
for. For e.g McDonalds extended identity. Brand personality :fun laces, exciting , cool.
10. Generic brand - A product that is named only by its generic class (e.g., drip-grind
coffee, barber shop. Other products have both an individual brand and a generic
classification (Maxwell House drip-grind coffee, Maurice's barber shop). Generic brand
products are often thought to be unbranded, but their producer or reseller name is usually
associated with the product, too e.g Food Bazar Rawa, Food Bazar Maida. This approach
is usually associated with food and other packaged goods, but many other consumer and
industrial products and services are marked as generics e.g Kerosene , Aspirin
11. Co- branding - Co-branding is an arrangement that associates a single product or service
with more than one brand name, or otherwise associates a product with someone other
than the principal producer. The typical co-branding agreement involves two or more
companies acting in cooperation to associate any of various logos, color schemes, or
brand identifiers to a specific product that is contractually designated for this purpose.
There are two types of co – branding i.e. Ingredient co- branding and Composite
cobranding. For e.g. Coca Cola with Macdonald’s, Sunfeast Farmlite digestive biscuits
made from Aashirvaad atta. Intel with HP. ICICI bank visa card with Big bazaar
12.
13. Ingredient Co- branding is another form of co- branding . Ingredient co – branding
implies using a renowned brand as an element in the production of another renowned
brand
For e.g. Sunfeast Farmlite digestive biscuits made from Aashirvaad atta HP or any
computers with Intel Processors , Sunsilk with Keratin Micro technology Pantene with
Pro V
14. Composite co – branding - Composite Co- branding strategy involves two existing
brands and composite with these two to make or create a composite brand name for a new
product. It refers to the use of two renowned brand names in a way that can collectively
offer a distinct product / service that could not have been possible individually For e.g
Iphone with Voda fone, Coca Cola with McDonalds, Exclusive Citibank Platinum VISA
credit card for Jet Airways flyers
15. Brand Vision - The ability to see your company’s future through your customer’s eyes.
The brand's guiding insight into its world
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16. Brand equity - A set of brand assets and liabilities linked to a brand, its name and
symbol, that add to or subtract from the value provided by a product or service to a firm
and / or to that firm's customers”.The sum of all distinguishing qualities of a brand,
drawn from all relevant stakeholders, that results in personal commitment to and demand
for the brand; these differentiating thoughts and feelings make the brand valuable and
valued.
17. Brand extension - Brand extension is when a firm uses an established brand name to
introduce a new product. When a new brand is combined with the existing brand, the
brand extension can also be called as sub brand An existing brand that gives birth to a
brand extension is referred to as the parent brand. If the parent brand is already associated
with multiple products through brand extension then it may also be called a family brand.
For e.g Dove -Dove Shampoo, Dove Conditioner, Dove Body lotion etc
18. Line extension - The parent brand is used to brand a new product that targets a new
market segment within a product category currently served by the parent brand. A line
extension often involves a different flavor or ingredient variety, a different form or size,
or a different application for the brand e.g Maggi Masala Noodles, Maggi Atta noodles,
Maggi chicken Noodles etc.
19. Moving the brand up - When the existing brand name is too much of a drag, the only
feasible alternative is likely to be the creations of a standalone brand. Another strategy
that a brand adopts for moving the brand up is by introducing ‘limited edition’, special
edition for example ‘ Mont blanc pens fall in the is category . For instance its writer’s
edition was based on famous authors such as Charles Dickens , Oscar wilde, etc.
20. Moving the brand down - Today's markets, from tires to clothes to computers, are
becoming increasingly value centered. More and more buyers are turning from prestige
and luxury to lower-cost brands that deliver acceptable quality and features. For e.g
Nokia moved their brand down by launching Nokia ASHA for the labour / worker class,
Not very high priced , it had the potential to affect the minds of the target audience in a
very positive way .
21. Multi branding - The depth of branding strategy concerns the number and nature of
different brand marketed in the product class sold by a firm. The main reason to adopt
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multiple brands to pursue multiple brand segments. These market segments may be based
on all types of consideration – different price segments, different channels of distribute,
different geographic boundaries and so forth. For e.g Unilever has Surf excel, Rin and
Wheel in the same product category Detergent
22. Multi Product Branding - Multi Product branding strategy is when an organization uses
one name for all its products. This approach is also referred as blanket or family branding
strategy. It is an attempt to leverage corporate brand equity, in an attempt to create
product brand recognition e.g Godrej – Godrej store well, Godrej Navtal , Cadbury makes
Cadbury Five Star, Cadbury Dairy Milk , Cadbury Perk etc
23. Mix branding - Mixed branding is a strategy of producing the same good but marketing
it to different segments under different names. The segmentation does not have to be
pricerelated. The best example is Toyota and Lexus. Toyota in the U.S. was perceived as
a "value" brand and Lexus targeted the more expensive market.
24. Brand licensing - Brand Licensing is a contractual agreement whereby a company allow
another firm to use the brand name, patent, trade secret or other property for a royalty or
a fee. Licensing also assists companies entering global markets with minimal risk.
Licensing can be quite lucrative for the licensor. It has long been an important business
strategy for designer apparel and accessories such as Garfield cat, Disney’s Mickey
Mouse or celebrities and designers such as Martha Stewart , Tommy Hilfiger
25. Umbrella branding - An umbrella brand can be referred to as a brand when a group of
products possess the same brand name which is known as a family brand or an umbrella
brand. Different products having different images are put together under one major brand
or parent brand and are marketed by the firm. Umbrella branding does not mean that the
whole product portfolio of a firm will fall under one brand name as company can go for
different approaches of branding for different product lines. EXAMPLES - Amul is an
example of umbrella brand. Amul Butter, Amul Cheese spreads, Amul Milk, Amul ice
creams, Amul ghee all fall under single brand name AMUL. Godrej is another example
of umbrella brand. Products like locks, steel cupboards, office furniture electronic
typewriters, desktop printers, refrigerators, air conditioners etc. all come under one parent
name
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GODREJ
26. Brand hierarchy - A brand hierarchy is a means of summarizing the branding strategy
by displaying the number and nature of common and distinctive brand elements across
the firm's products, revealing the explicit ordering of brand elements. Perhaps the
simplest representation of possible brand elements and thus potential levels of a brand
hierarchy— from top to bottom—might be as follows
● Corporate Brand : HUL
● Range Brand : Dove
● Individual Brand : Dove Shampoo
● Modifier Brand: Dove Shampoo- Hair therapy
26. Range brand - Range / family brand is the second level in Brand Hierarchy. It is defined
as a brand that is used in more than one product category but is not necessarily the name
of the company or corpo ration itself. Brand spread across a range of product categories.
For e.g. . Corporate Brand is HUL, Range is DOVE
27. Brand repositioning - Repositioning is the task of implementing a major change the
target market’s perception of the product’s key benefits and features, relative to the
offerings of competitive products. Sometimes, marketers feel the need to change the
present position of the brand to make it more meaningful to the target segment. This
change in position, and finding a new position for the brand, is called brand
repositioning. Repositioning also happens due to various other reasons such as falling
sales, viable position , bringing new costumers etc. For e.g Dettol toilet soap was
positioned as beauty soap initially. It did not work. Dettol, the parent brand (antiseptic
liquid) was known for its ability to heal cuts. The extension’s “beauty "positioning was
not in tune with the parent's “germ-kill” positioning. The soap therefore had to be
repositioned as germ-kill soap and it faired extremely well after repositioning.
28. Brand image - The customer's net "out-take" from the brand. For users this is based on
practical experience of the product or service concerned (informed impressions) and how
well this meets expectations; for non-users it is based almost entirely upon uninformed
impressions, attitudes and beliefs.
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29. Brand awareness - Is the ability of a potential buyer to recognize or recall that a brand is
a member of a certain product category? It refers to the strength of a brand's presence in
the consumer's mind. A link between product class and brand is involved. For e.g the use
of a large balloon with the word Levi's on it may make the Levi name more salient, but it
will not necessarily help improve name awareness. However, if the balloon is shaped to
resemble a pair of Levi's 301 jeans, the link to the product is provided, and the balloon's
effectiveness
30. Aided recall - Aided awareness consists in aiding the target audience to recall brands. In
this the researcher casually asks the respondent if he is aware of any more brands in the
category.
31. Brand association - The feelings, beliefs and knowledge that consumers (customers)
have about brands. A brand association is anything "linked" in memory to a brand. Thus,
McDonald's could be linked to a character such as Ronald McDonald, a consumer
segment such as kids, a feeling such as having fun, a product characteristic such as
service, a symbol such as the Golden Arches. These associations might include product
attributes, a celebrity spokesperson, or a particular symbol. Brand associations are driven
by the brand identity - what the organization wants the brand to stand for in the
customer's mind. A key to building strong brands, then, is to develop and implement a
brand identity.
32. Unaided awareness - Refers to the few brands, which immediately come to mind. It
measures the brand's impact, i.e. to what extent it is spontaneously associated with a
given product category for. E.g Chocolate -Have a break Kit kat
33. User imagery - User imagery can be based on either typical users (people you see using
the brand) or idealized users (as portrayed in advertising and elsewhere). User imagery
can be a powerful driver of brand person ality, in part because the user is already a person
and thus the difficulty of conceptualizing the brand personality is reduced. For e.g TVC
of
Raymond’s,( playing with puppies) focuses on soft side of man (i.e. caring and loving)
and also on subtle aspects of life styles of executives
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34. Functional benefit - The most visible and common basis for a value proposition is a func
tional benefit—that is, a benefit based on a product attribute that provides functional
utility to the customer. Such a benefit will usually relate directly to the functions
performed by
the product or service for the customer. For e.g. Volvo is a safe, durable car because of its
weight and design, Quaker Oats provides a hot, nutritious breakfast cereal, a BMW car
handles well, even on ice, Huggies deliver comfort and fit, so leaks are reduced
35. Emotional benefit - When the purchase or use of a particular brand gives the customer a
positive feeling, that brand is providing an emotional benefit. The strongest brand
identities often include emotional benefits For e.g. Excited in a BMW, Energetic and
vibrant when drinking Coke. In control of the aging process with Oil of Olay, Strong and
rugged when wearing Levi's
36. Value proposition - A brand’s value proposition is a statement of the functional,
emotional and self-expressive benefits delivered by the brand that provide value to the
customer. An effective value proposition should lead to a brand—customer relationship
and drive purchase decisions
37. Sub brand - It stretches endorser brand that add association. A brand personality or any
other quality which creates brand identity For example, Nestle KitKat, Cadbury
Dairy Milk, Sony PlayStation or Polo by Ralph Lauren
38. Brand Manager - Brand Managers have traditionally had strategic and tactical
responsibility for their brand , including having responsibility for the brand identity and
position , maintaining that identity by securing needed investments and male sure that all
media efforts are consistent with the identity . The brand manager’s role was first
developed by Procter & Gamble in the mid- 1930s for brands representing distinct
business of manageable size, is now being applied in more complex organization
39. Brand Equity Manager - Some firms have separated brand strategy from the
implementation of the marketing program. A brand equity manager (sometimes labeled
as a brand manager) is in charge of creating and maintaining the brand identity and
coordinating it over products and markets. The brand equity manager monitors, reviews,
and perhaps approves the tactics from a brand strategy perspective.
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40. Range Brand Manager - Firms with range brands are naturally organized by products.
The range brand manager sup-ports the brand by making sure that there' is an overall
brand strategy accepted by everyone and that managers are sensitive to both the need to
support the brand identity and the need to avoid inconsistencies. This task involves
developing communication vehicles that maximize brand identity synergies across the
organization.
41. Global Brand Manager - Each country has a complement of national brand managers,
each of whom is charged with marketing his or her respective. Global Brand manager is
who is charged with developing a brand identity worldwide, ensuring that the companies
in each country are faithful to the brand strategy, communicating and facilitating best
practices, and encouraging consistency and synergy across countries
42. Niche Brand - A niche market is the subset of the market on which a specific product is
focusing. So the market niche defines the specific product features aimed at satisfying
specific market needs, as well as the price range, production quality and the
demographics that is intended to impact. It is also a small market segment. For example,
sports channels like STAR Sports, ESPN, STAR Cricket target a niche of sports lovers
43. Silver Bullet - A silver bullet is a brand or sub-brand that positively influence the image
of another brand. It can be a powerful force in creating, changing and maintaining a
brand image. e.g.. When IBM ThinkPad was launched it has provided a significant boast
in public perception of the IBM brand.
44. Perceived Quality - Perceived quality can be defined as the customer's perception of the
overall quality or superiority of a product or service with respect to its intended purpose,
relative to alternatives. Perceived quality is an intangible, overall feeling about a brand. It
is, first, a perception by customers. It has been shown to drive the financial performance
and is often a major (if not the principal) strategic thrust of a business. Perceived quality
is linked to and often drives other aspects of how a brand is perceived
45. Endorser brand: An endorser brand is an established brand that provide credibility and
success, It usually represents organization rather than product because organizational
association such as innovation, leadership and trust are particularly relevant for
endorsement e.g Mc Chicken, Mc burger m Mc Tiki etc
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46. Brand Revitalization : Change is always the catalyst that drives a brand revitalization. It
could be increased competition, market or industry trends, business acquisitions or
expanding product lines. Whatever is driving the change, you can revitalize your brand
by clarifying and simplifying the brand’s promise then consistently communicate it at
every customer touch point. This will define what makes you different and give
customers a stronger, more compelling reason to do business with you. For e.g Cadbury
Dairy Milk Silk promoted for adult market .
● Portfolio
● Architecture
● Brand mantra
● Mental maps
● Secondary associations
● Brand equity
● POP and POD
● Depth and breadth of brand awareness
Brand Building
Brand Equity & Models
What is brand equity? What are the four major asset categories?
Explain Brand asset valuator ( BAV)
Explain brand equity ten
Explain Y & R graveyard model of brand equity
Short notes
Equitrend
Interbrand
Brand Association (2014, 2015)
Perceived quality
Brand awareness
Brand loyalty pyramid (2011, 12,2015)
Brand recall
Brand recognition
Unaided awareness
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Brand Strategies
Define brand and explain brand product matrix ( 2012, 13, 14, 15 )
Explain brand building blocks or it's difficult to build brands in the current scenario. Elucidate.
(2010,11,12,13,14,15)
What are the ten guidelines to build a brand (2011, 14,15)
Write a note on co- branding (2014)
Short notes
Multi Product Branding (2010)
Multi Branding
Brand licensing ( 2012)
Brand hierarchy
Range branding
Brand Identity
Explain the four identity perspectives or What are the four-identity perspective (2010, 15)
Short Notes:
Core identity
Extended identity
Brand identity traps (2014)
Brand identity (2012)
Brand Personality
How are brand personalities created? Explain both product and non- product categories? (OCT
2011)
What is brand personality? Explain Big five of brand personality. (OCT 2015 )
Explain Brand personality create brand equity
Short Notes:
Brand personality versus user Imagery
Self expressive relationship model
The relationship basis model
Functional benefit representation model
Brand Positioning
Explain the four components of Brand positioning? (2014) What
is the cornerstone of brand positioning strategy?
What are the qualities of brand positioning?
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Brand
Define Brand. Explain the difference between Brand vs product (2011,12, 13, 14, 15). OR What
is the Brand? How does it differ from a product?
Brand vs Product (OCT 2011)
Advantages and Limitation of branding (2015)
Process of branding
Define brand and explain brand product matrix ( 2012, 13, 14, 15 )
Explain brand building blocks or It's difficult to build brands in the current scenario . Elucidate.
( 2010,11,12,13,14,15)
What are the ten guidelines to build a brand (2011, 14,15)
Write a note on co- branding (2014)
Short notes
Multi Product Branding (2010)
Multi Branding
Brand licensing ( 2012)
Brand hierarchy
Range branding