Branding by usman.ahmed


   Historical Evolution of Brands
Branding was Stamping for Identification
Animals were "Branded" for identification of their
Branding was defined by Oxford Dictionary as, 'to mark
indeilbly as proof of ownership, as a sign of quality, or for
any other purpose'
Hence Branding began as a legal issue even on products,
   however is soon became important in that-

              Source of Product became tracable
              Quality was assured
              Consumer loyalty to a producer became
                     legitimate and expected
 Historical Evolution of Brands
Rapid rise of urban growth from 1960s and
growing distance between producer and
consumer led to rapid growth in Branding

The growth was supported by advent and
proliferation of MASS MEDIA and ORGANISED
RETAILING. The former facilitating branding
and the latter necessiating it

From 1980s Intangible Value addition has come
to be a chief value building element and hence
today all the more importance of Branding

 Branding is a process of brand development and its
  management (which includes issues as Brand
  Extension, Brand Health Monitoring, Brand
  Rejuvenation & the like)

 Brand is a collection of associations, commercially
  material with regard to a commercial entity
  (which can be Product/productcategory/firm/Places
  /personality & like entities)
  Nature of Chief Associates Used
Associate Form        Example

Verbal                Schweppes
Aural                         Martini melody
                                                         Rise in
Visual                Old Spice
Packaging             Boost
Symbols                       Duckbag, Dulux Dog         Of Brand
Analogies             Famous Personalities, Celebrities  Building
Metaphors             Swiss Craftsmenship, Americanness
Tone of Voice         TSB, National Geographic, Doordarshan
Structural            B&H

Modified from Brand Typology by Langmaid and Gordon 1988
         Use of Brand as a Device

Brand is useful as a-

1.   Sign of Ownership
2.   functional device
3.   Risk reducer
4.   Differentiating device
5.   Symbolic device
6.   Legal device
7.   Strategic Device
 Brand Selection Nuances, a view-
Significant           Extended                 Tendency
Perceived Brand
                      Problem Solving          to Limited Problem
Minor                 Dissonance               Limited Problem
Perceived Brand
                      Reduction                Solving
                              High        Low
                              Consumer Consumer
                              Involvement Involvement

       Typology of Consumer Decision process, adapted from Assael, 1987
    Two Sides of the Lonely Coin
Brand Edifice
                     Surreal Edifice
                     Real Edifice **
                                          Brand Equity
Surreal Edifice
                            Brand Essence
                            Brand Identity
                            Brand Personality
                            Projection Efficacy
                            Projection Equity
Real Edifice
                           Total Product Value
** For all business purposes, perception is the reality
         Perceptions of Quality

Quality is free
             Philip Crosby

Quality and the Image of Quality
Promises for Ages
Quality Positioning for all Products ?
Quality, a Life Style ?
         Perceptions of Quality

Quality is free
             Philip Crosby

Quality and the Image of Quality
Promises for Ages
Quality Positioning for all Products ?
Quality, a Life Style ?
                Brand Loyalty
  The strength of the consumers preference for a brand
  corresponding to his readiness or otherwise for using
  a competing brand can be termed as one definition of
  Brand Loyalty

  Brand Loyalty is often the core strength of the brand
  and often a major bearing variable in determination of
  brand equity

Consumers need a reason to change
Consumers donot need a reason to change
           Brand Awareness

Without Awareness, Where is the Brand ?

Top of the Mind Recall
Unaided Recall
Aided Recall
Faint Recall
Unaware of the Brand
                 Brand Loyalty
Levels of Brand Loyalty-
Committed Buyers
Likes the Brand, considers it his friend
Satisfied buyer with switching costs
Satisfied/Habitual buyer , no reason to change
Switchers - Price Spotters, Variety Seekers, Indifferents

                                  David Aaker
                                  (The Loyalty Pyramid)
                   Landors Image Power
      (Mim Ryan assesment : The first step in Image managements, Tokyo Business Today
                                          Sep, 1988,
                            PP. 36-38, numbers are approximate)

The Most Powerful Brands in the US-
Company/Brand       Share of Mind Index/Awareness      Esteem Index Image Power
                                                                 Rank Order
Coca-Cola                              78                           68      1

Campbells                              60                             67        2
Pepsi-Cola                             67                             61        3

AT&T                         63                            64         4
McDonalds                              77                             50        5

American Express             65                            50         6
Kellogs                      64                            58         7
IBM                                    58                             65        8
Levis                        58                            63         9
Sears                        62                            59         10

Rolls Royce                  46                            63         30
        Ages of best known Brands

Age of Brand                                   Percentage of 4,923
                                               Brands Mentioned
Over 100          years                              10
75 to 99          years                              26
50 to 24          years                              28
25 to 49          years                              04
15 to 24          years                              04
Under 14          years                              03

Source- Adapted from Leo Bogart and Charles Lehman, What Makes a Brand
   Name Familiar ? Journal of Marketing Research February 1973, PP. 17-22
    The Leading Brands - 1925-1985
Product            Leading Brand, 1925     Current Position 1985

Bacon                   Swift                     Leader
Batteries               Everyday                  Leader
Biscuits                Nabisco                   Leader
Breakfast Cereal        Kellogg                   Leader
Cameras                 Kodak                     Leader
Canned Fruit            Del Monte                 Leader
Chewing Gum             Wrigley                   Leader
Choclates               Wrigley                   No. 2
Flour                   Gold Medal                Leader
Mint Candies            Life Savers               Leader
Paint                   Sherwin-Williams          Leader
        The Leading Brands - 1925-1985
Product                Leading Brand, 1925                    Current Position 1985
Pipe Tobacco                   Prince Albert                             Leader
Razors                         Gillette                                  Leader
Sewing Machines                Singer                                    Leader
Shirts                         Manhattan                                 No. 5
Shortening                     Crisco                                    Leader
Soap                           Ivory                                     Leader
Soup                           Campbell                                  Leader
Tea                            Lipton                                    Leader
Tyres                          Goodyear                                  Leader
Toothpaste                     Colgate                                   No. 2
Source – Thomas S Wurster, “The Leading Brands: 1925-1985,” Pespectives, The Boston Consulting
Group, 1987
     How to Achieve Awareness
Communicate Intensely
Be Different, Memorable
Involve a Slogan or a Jargon that is easy to get
  on lips
Symbol Exposure has to be adequate
Publicity and PR ought to be intensely employed
Event Sponsoring and Event Association
Consider Celebrities
Recall Requires Repetition
           Limits of Awareness
Awareness by itself does not lead to purchase
Awarness can be increased through controversy but
the same is found not to useful
Even uniqueness of awareness generation does not
help unless backed by proper value offer
Awareness has to continously kept up and is not self
Higher the impulse purchase, higher the need for Top of
Mind Awareness
          Brand Loyalty, a view-
Heavy category users use a variety of brands
Big brands are bought more frequently than smaller

Brands most loyal customers are least profit yielding
since they buy the brand infrequently

Any Brands easy new converts are the consumers of
competing brands who buy them infrequently

Ehrenbergs emperical work, 1993
              Loyalty vs Profit Pyramid
                    % of Category Volume                            Loyalty

High Profit            83%                                            High

Medium Profit          14%            16%                             Higher

 Low Profit          3%               16%                             Highest

  No Profit                           52%                           V Low / Zero

                   % consumers of a product category
          Yogurt Category profit and loyalty matrix of US, derived from Hollander 1995
                                                                    and Ehrenberg 1993
Strategic Value of Brand Loyalty

  Enhances brand equity and hence the value of the firm

  Reduced Marketing Costs

  Trade & Retail Leverage

  Attracting new customers
                       Brand Awareness created
                       Re-assurance to new customers

  Time to respond to competitive threats
 Brand                        Definition/s

A Brand is a name, term, sign symbol or design or
a combination of them, intended to identify the
goods or services of one seller or a group of sellers
and to differentiate them from those of competitors
                                      Philip Kotler

A successful brand is an identifiable product, service,
place or person, augmented in such a way that the
buyer or user perceives relevant, unique added values
which match their needs most closely. Furthermore, its
success results from being able to sustain these added
values in face of competition
                                       Leslie        &
 Brand                  Definition/s

A Brand is a distinguishing name and/or
symbol (such as a logo, trade mark, or
package design) intended to identify the
goods or services of either one seller or a
group of sellers, and to differentiate those
goods or services from those of competitors
                           David Aaker
              Brand Demise ?

Downtrading is on the increase
Waiting for Discounted Merchandise
Falling Brand Loyalty and increasing switches
Increasing Brand Parity
Increasing Brand Clutter
Premium brands coming down to earth
High rate of Brand Failures
Increase in use of Promotions over Developing Strong
Retailers Store Brands and Private Labels are going
           Brand Sayings
A Product is something that is made in a factory,
a brand is something that is bought by a
customer. A product can be copied by a
competitor, a brand is unique. A product can be
quickly outdated; a successful brand is timeless
                                  Stephen King
                                  WPP      Group,
     Life and Death of Brands
Brands have no right to exist. They are not guranteed
by the constitution. There is no economic law that
expects them to fuel supply or demand. They carry
no inbred immune system. It is possible to sell a
product or service without creating an elaborate
brand; in fact, it happens all the time. It would take
some major adjustments, but global economies
would eventually survive if brands were to fall out of
sight and never be heard from again. While brands
admittedly become the foundation of our commercial
markets, they are, hard as it might to be to accept,
                                Lynn B Upshaw
    Constituent Categories of the
Product-     Function,   Design,   Packaging,    Price,

Services- Before Sales Service, After Sales
           Delivery, Availability, Advice, Finance,
                 Warrantees, Gurantee, Add-ons

Brand-              Perceptions on issues (like Ethical
   reliabililty,          Quality, etc.) with regard to
               Corporate Brand, Product/s Brand
                  Commodity to Brand

Price                                                Intangible
Differentiation                                      Value
/ Margins                                            Addition

                     Product/Image Differentiation
            illusion of Truth
Consumer Preference Tests on Diet Coke & Diet

                Blind Tests Open Branded Test
  Prefer Pepsi        51%       23%
  Prefer Coke         44%       65%
  Equal/cannot say          5%        12%

Consumers Experience the Power of the Brand
             Brand Equity
Brand Equity is 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 firms customers
                         David Aaker
               Brand Equity
In 1985 Reckitt & Colman acquired Airwick Industries
and put on its balance sheet 127 Mn Pounds as
financial value resulting from the intangible benefits of
goodwill, heritage and loyalty conveyed by the newly
acquired brand names
In 1988 Rank Hovis Mcdougal put 678 Mn Pounds on
their balance sheets as the valuation of their brands

In 1988 Nestle and Jacobs Suchard fought for
ownership of Rowntrees tangible assets worth 300Mn
Pounds but Nestle had to pay for control, 2.5bn
pounds. The difference of 2.2 bn pounds was for
brands of Rowntrees like KitKat, Polo, Quality Street
and After Eight Mints
 Issues in Managing Brand Equity
The basis of brand equity
Creating brand equity
Managing brand equity
Forecasting the erosion of equity
The Extension decision
Creating new names
Complex families of names and subnames
Brand-Equity measurement
Evaluating brand equity and its component assets

                                David Aaker
   Worlds Most Valuable Brands

Rank    Brand                          Valuation in

 1      Marlboro                                44,614
 2      Coca-Cola                      43,427
 3      McDonalds                      18,920
 4      IBM                            18,491
 5      Disney                         15,358
 6      Kodak                          13,267
 7      Kelloggs                                11,409
 8      Budweiser                      11,026
 9      Nescafe                                 10,527
 10     Intel                          10,499
                Financial World Magazine, global survey,
       Relevance of Branding

Branding for Producers
Branding for Consumers
Brands & the Market
             Pervasive Brands

Political Parties
              Process of Branding
  is the classification of the market into groups of consumers on
  some basis like Class, Gender, Age, Education, Religion, lifestyle
  and the like
it helps focus more and better since consumers also consume

  refers to the conceptual and active efforts put in addressing the
  selected segment

  Having selected the segment and decided to target it, accordingly
  Images need to be built which in association with many other
  factors, finally form in the consumers mind, an Image for the
  company or product, called the Brand Image
         Issues in Branding

Brand Positioning
Brand Communication
Brand Equity
                      Brand Equity

                                    Provides Value to (by
Brand Awareness                     enhancing) -
Brand Loyalty                       Customer                Firm
Perceived Quality                   Interpretation      Loyalty
Brand Associations in addition to   /Processing         Margins
perceived Quality
                                    Of information      B-Exten.
Brand Assets as Patents, Trade
Marks, Channel Relationships        Confidence in       Trade
and others                                              Lev.
                                    Purchase Decision
                                    Use Satisfaction
          Issues in Branding

Brand Extension
Brand Rejuvenation
Brand Repositioning

Brand Architecture
  Extended / Hybrid
          Issues in Branding

Brand Identity
Brand Personality
Brand Essence
Brand Associations
         Issues in Branding

Endorsing Brands
Source Brands
Retailers Brands
Private Lables
              Issues in Branding

Corporate Brands
Product Brands
Product Category Brands
Collective Brands

Personality Brands
Heritage / Historical / Geographical Brands

          Issues in Branding

Collective Brands
Owned by Government
Owned by none but self developed
Owned by firms

Development of Collective Brand, Collectively
           Issues in Branding

Co-Branding            (Intel & Compaq)
  Co-Branding                  (Shell & Fiat Palio)
  Co-promotion         (Colgate free with Ariel)
  Co-communication             (Oracle with TCS)

Co-Branding Dynamics

     Win-Win     Stronger gets more weaker gets less
     Lose-Win    Stronger gets less Loser loses more
     Lose-Lose   Stronger loses less Weaker loses
          Issues in Branding

Brand Leadership -- David Aaker
          Variables in Branding

Brand Awareness
      Top of the Mind Recall
      Unaided Recall
      Aided Recall
      Brand Recognition
      Brand Unawareness
Brand Knowledge
Brand Preference
Brand Usage
Brand Loyalty
        Variables in Branding

Brand Assets
Brand Evaluation

Global Brands
Thematic Brands
Heritage Brands
Empty Brands
Brand Equity
Building Strong Brands
Building Global Brands
Brand Leadership
Designing Brands
            Service Brands

Search Services

Experience Services

Credence Services
Experiential Products Brands
Collective Brands
Thematic Brands
Retailer Brands & Store Brands
Private Labels
Brand Health over Ages
         Types of Associations

Product Attributes
Customer Benefits
Relative Price
Use / Application
User Customer               Brand Name & Symbol
Celebrity / Person
Life Style / Personality
Product Class
Country / Geographic Area
    Value of Brand Associations

Help Process / Retrieve Information
Differentiate / Position
Reason to Buy
Create Positive Attitudes / Feelings
Basis for Extensions
               Psychological Benefits
Product                  Feature                    Rational
  Psychological                                       Benefit

Computer                 Bubble Memory      cannot lose work      Job Safety
  / Security

Banking          High Yield IRA   Make High Return       Independence
                                                         / Financial security

Shampoo                  Built in Conditioner Full, thick hair    Confidence
   about                                                          looks

Shampoo                  Natural protein       safe to use        Exciting /
     The Measurement of brand
List out Associations
Investigate the existence and strength of
Make Absolute Measurements
Make Relative Measurements
Different techniques as Perceptual Mapping,
and other are useful
Direct and Indirect Investigations are carried out
      Indirect methods of probing
Determining Brand Meanings-
Picture Interpretation
Brand as a Person
Brand as an Animal
In-depth look at use experience
Dissecting the decision process
Describing the brand user
How brands are perceived differently
Personal Values driving choice
Free association
                Positioning                (Aaker)

Selecting, Creating and Maintaining Associations-

Self Analysis
                           Brand Attributes
                           Brand Perceptions
Competitors Associations
Target Market
                           Provide Reason to Buy
                           Add Value
     Name, Symbol and Slogan
Name should -
Be Easy to learn
Suggest the product class
Support Symbol or Slogan
Suggest Brand Associations
Have no undesirable associations
Be Distinctive
Be Legally tenable
      Name, Symbol and Slogan
Symbols ought to-
           Get into Memory
           Suggest Associations
           Suggest Product Class
           Enhance Awareness
           Develop positive associations
           Culturally Enrich the product

Slogans are the Spice of Communications
           Brand Extensions

Five possible Results of Brand Extensions-
1. The Brand Name aids extension
2. The extension enhances the brand name
3. The brand name fails to help extension
4. The brand name is damaged
5. The brand is killed

             Brand Extensions
Brand Extensions are successful when-
Transferability of skills and competencies to new brand
Resources are enough to support an extension
There is no clash between the brand essence
The extension brings synergy in operations
The extension is in related product categories
The target segments are same or similar
Coherence across communication mix is upheld
Product Design coherence adds to brand building
          Revitalising brands
Increasing Usage
Finding new uses
Entering new markets
Repositioning the brand
Augmenting the Product / Service
Obsoleting existing products
Extending the brand
                  Global Branding
Segmenting, Targetting, Positioining, HOW ?
Global, Local or Glocal ?
Thematic Brands can easily be tailored for the Globe
Collective Brand too can easily be made Global
Technological products and Product based positioning is easy to
Life style products in the premium end can easily be branded
Life style products in value for money range are difficult to brand
Products where intangible value addition is psychological and
    cultural are
difficult to brand globally
Products which are Historical are difficult to intangibly augment
        Brand Equity in Aakers
               Brand Awareness

                Brand Associations

Brand Equity
                Brand Loyalty

                Perceived Quality

                Other Proprietary Assets
             Value of the Brand

Price Premiums generated by the brand
Replacement Cost
Stock Price owned to the brand
Future Earnings Potential
Appraising Brand Assets
Strategic Value of Brands

A Multiplier has to be estimated and agreed upon in
   most of
the above calculations
     Personality and Self Concept

Self Image
Perceived self image through others
Ideal Image
Aspirational Image
Brand Image
        Basis for Segmentation

           Positioning Nuances
Under Positioning
Over Positioning
Confused Positioning
Doubtful Positioning

Positioning is always done on the central idea
Positioning: Styles, Fashions and Fads

  Page 305 kotler
Other People’s minds are a wretched place to be at
                            …Arthur Schepenheur
What’s in a name ?            …Shakespeare
            So Much for the Brand Image
               But We all Know . . .
There are Watches and there are Swiss Watches
There is Fashion and there is Milan Fashion
There are Cars and there are Rolls Royce Cars
             What is a Brand ?
Brand is an effective collection of associations in
  the consumer’s mind
The actual product use, Word of Mouth,
  Information from print and media and
  Advertising, all lead to the creation of a brand
Branding gives the producer an additional profit
  and to the consumer an assurance of quality and
  an Image to consume
Branding leads to Product Differentiation even
  when functional similarity exists
  Brands and the Perceptual Space
Consumer’s mindspace stores perceptions and
  images about a range of Individuals and
  Products, we in branding shall be concerned
  with the conceptual space of images
  pertaining to the products
Jack Trout and Al Ries, the Gurus prescribe
  strong focused branding as opposed to
  Umbrella Branding practiced by many
Brand Research leads to the collection of data
  and insights pertaining to the perceptual
  space of
   consumers, pertaining to any product/product
         Branding and Attributes
Brand Image to be created has to be around
  certain attributes consumers would prefer to
A loss of focus on one or a limited and small no. of
  attributes leads to Brand diffusion
Attribute identification hence is the true beginning
  of branding
Interactive media and the net shall give a new facet
  to the branding process
Do Brands have a living personality ?
 Self Image and Brand Image Concept
Every Man and consumer beholds a Self Image,
  an Image of himself
The Consumer also beholds an Aspirational Self
  Image, an Image of What he aspires to be
Attributes which interact and quicken these
  images to life have been identified by S Sen
Branding needs to bring closer the two images
Brand Extension, Rejuvenation & Alteration

  Brand Extension refers to the extension of an
    existing brand name to a newer product/s
  Brand Rejuvenation refers to the continual
    efforts being put to keep up the brand in the
    consumer’s consciousness and avoid
    Brand Clutter
  Brand Alteration refers to a unique type of
    rejuvenation where the attribute on which
    the brand is positioned or the image, is to
    be changed and hence J    ND
 Brand Personality and Attributes
Brand personality is finally constituted of
  Attributes projected in some specific
  personalized way
Common feelings experienced by Ad. Audience
 Defiant        Adventurous
 Surprised      Affectionate
 Enthusiastic   Elated
 Receptive      Youthful
 Unhappy        Macho
 Joyful         Trendy
 Hesitant       Cozy
             Books on Branding
1.  Marketing Management by Philip Kotler
2.  Managing Brand Equity by David Aaker
3.  Building Strong Brands by David Aaker
4.  Brand Leadership by David Aaker
5.  Brand Positioning by Subroto Sen Gupta
6.  Strategic Brand Management by Noel Kepferer
7.  Brand Warfare by Al Ries and Jack Trout
8.  The 22 immutable laws of Branding by Al Ries and Laura
9. Marketing Aesthetics by Brand Smicdt
10. Creating Powerful Brands by Leslie and Malcolm
Thank You Brands

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