BUILDING

STRONG BRANDS
Dr. Rachita Jayswal
What is Brand?

◦ According to the American Marketing Association (AMA), a brand is a “name,

term, sign, symbol, or design, or a combination of them, intended to identify
the goods and services of one seller or group of sellers and to differentiate
them from those of competition.”

◦ These different components of a brand that identify and differentiate it are

brand elements.
What is Branding?
◦ A brand name is the name of the distinctive product, service, or concept.
Branding is the process of creating the brand name.
Brand Elements
◦ 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

◦ Packaging

◦ Personality
Brand Elements
• Brand name and logo: A brand name and logo help to create a visual identity for a
brand and can communicate a brand's values and personality. They are usually the
first things people notice about a brand and can have a significant impact on how a
brand is perceived.
• Brand messaging: Messaging is important in creating a unique voice for a brand and
communicating its value proposition. It should be consistent across all touchpoints
and help to differentiate the brand from competitors.
• Brand identity: A brand identity encompasses all of the visual and non-visual
elements that make up a brand, including color schemes, typography, and imagery. A
strong brand identity helps to create a consistent and recognizable image for the
brand.
Brand Elements
• Brand personality: A brand personality refers to the emotional characteristics
that are associated with a brand, such as friendliness, reliability, or
sophistication. It helps to create a human-like connection with customers and
can influence brand loyalty.
• Brand values: Brand values represent the core beliefs and principles of a
brand, such as sustainability or innovation. They are important in creating a
brand identity that resonates with customers and can help to differentiate the
brand from competitors.
Brand Element Choice Criteria
◦ Memorable
◦ Meaningful
◦ Understandable
◦ Likeability
◦ Transferable
◦ Adaptable
◦ Protectable
Brand Equity
 Brand equity is the added value that endowed to products
and services.

 This value may be reflected in how consumers think, feel,

and act with respect to the brand, as well as the prices,
market share and profitability that the brand commands for
the firm.

 Brand equity is an important intangible asset that has

psychological and financial value to the firm.

 The Cost Approach, The Market Approach and The Financial

Approach are three methods for measuring Brand Equity.
Brand Equity
 The Cost Approach = By examining the costs of developing the brand. (Market Research, Brand
Design, Communication, Management and Legal Costs)

 The Market Approach = Difference between the sales revenue from branded offering against those
of identical unbranded offering minus cost of building and managing brand.

 The Financial Approach: Net present value of brand’s future earning. Three Steps: Computing
Company’s future cash flow, estimating the brand’s contribution to the company’s future cash flow
and adjusting cash flow using risk factor
Brand Power
Brand Power is the ancillary value contributed by the brand to a product or services.
◦ A brand has positive power if consumers react more favorably to a product and
the way it is marketed when the brand is identified than when it is not identified.
◦ A brand has negative power if consumers react less favorably to marketing activity
for the brand under the same circumstances.
Measuring Brand Power:
Brand Audit: To assess the health of the brand and suggest the ways to improve and
leverage its equity. It provides keen insights into consumer, brand and the
relationship between the two.
Brand Tracking: It helps to understand where, to what degree and in what ways
brand value is being created to facilitate day to day decision making.
Managing Brand Portfolios
◦ The set of all brands and brand lines a particular firm offers for sale in a particular
category or market segment.
◦ Three strategies:
◦ House-of-brands strategy: involves individual or separate family brand names.
◦ Branded-house strategy: involves a corporate umbrella or company brand name
◦ Sub-brand strategy: combines two or more corporate, family, or individual
product brand names.
•Samsung Galaxy
•Toyota Prius
•McDonald’s Big Mac
•AMD Ryzen
•Coca-Cola Zero Sugar
•Hot Wheels id
•Schwab OneSource
•Lenovo Legion
•Call of Duty: Black Ops
•Uber Black
•Microsoft Xbox
•Walmart Supercentre
•Sony Alpha
•Apple iPhone
•Philips Sonicare
•Amazon Alexa
•DoubleTree by Hilton
Brand Extension
◦ In simple terms, brand extension is when an organization utilizes one of their
entrenched brand name on a new product category. The central ideology
behind a brand extension is to launch a new product under an established
brand identity.

◦ One of the most examples of a successful brand extension is the ITC’s brand
Aashirvaad Atta – the top brand in the Atta market. Aashirvaad has
enormous brand equity because of its household name. With this grip in the
market, the organization has extended the brand into categories such as
salt, organic foods, spices, etc.
Advantages of Extensions
◦ Facilitate new product acceptance

◦ Improve brand image

◦ Reduce risk perceived by customers

◦ Increase the probability of gaining distribution and trial

◦ Increase efficiency of promotional expenditures

◦ Reduce costs of introductory and follow-up marketing programs

◦ Avoid cost of developing a new brand

◦ Allow for packaging and labeling efficiencies

◦ Permit consumer variety seeking

Advantages of Extensions (Cont.)
◦ Provide feedback benefits to parent brand

◦ Clarify brand meaning

◦ Enhance the parent brand image

◦ Bring new customers into brand franchise and increase market

coverage

◦ Revitalize the brand

◦ Permit subsequent extensions

Disadvantages of Extensions
1. Can confuse or frustrate consumers

2. Can encounter retailer resistance

3. Can fail and hurt parent brand image

4. Can succeed but cannibalize sales of parent brand

5. Can succeed but diminish identification with any one category

6. Can succeed but hurt the image of the parent brand

7. Can dilute brand meaning

8. Can cause the company to forgo the chance to develop a new brand
 Brand Extensions

◦ Dettol Managing Brand Extensions | Branding Strategy | Brand Management |

Marketing Case Study - YouTube
Unsuccessful Brand Extensions