1 on to branding

8/8/2019 1 on to Branding

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Introductions of Branding


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O rigins of branding

Derived from old Norwegian word brandr whichmeans to burnIn ancient times, farmers used to put burn marks asidentification on livestock to distinguish their

possessionsMarks on Chinese porcelain, pottery jars fromGrecian, Roman and Indian artifacts dating from1300 BCBakers to mark their bread - English law in 1266The Moon & the Stars (1851) P&G brandUneeda biscuits 1898 first nationally branded

biscuit


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W hat is a brand

A brand is a symbol or a mark that helps acustomer in instant recall, differentiating itthereby from the competing products of asimilar nature.

A brand is a name, term, sign, symbol or combination of them intended to identify thegoods or services of a seller or a group of sellers and to differentiate them from those of the competitors.

- AMADavid O gilvy defines a brand as the

consumers idea of a product.


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A differentiated product is a brand e.g. Adidas,I-Pod, Motorola, Coca Cola, etc.A brand differentiates the product from that of acompetitors.Its an identifier of the seller or maker.Its a promise of the seller to deliver a specificset of benefits or services to the buyer.A brand must satisfy two conditions Distinctive identity (name, symbol, logo, slogan,

etc.) A distinctive image (e.g. Nano vs. Zen)


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WH AT IS BRANDING?

Its the process by which a marketer tries to build a long term relationship

with the customers.It can also be viewed as a tool toposition a product or service.It influences the customers choice andhelps ensure repeat purchase.Branding is a conscious customer satisfaction orientation process.


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STRATEGIC RELEVANCEOF

BRANDING

A brand aims to segment the market.A brand has an enduring value.A brand tries to protect your

innovation.A product may die but the brand willsustain.

A brand is a living memory.


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BRANDINGA brand aims to segment the market.

A brand starts with a big idea! Is not basedon what goes on but what goes in. The result is an augmented product which

must be indicated to be noticed bypotential buyers.


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BRANDINGA brand has an enduring value.

A brands presence transforms the producte.g Lux soap has endured over 75 years,Raymonds since 1925.

It ensures a consumers personalattachment with the offering e.g. My Nokia,My Levis, My Mercedes.


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BRANDING

A brand tries to protect your innovation. It tries to create a mental patent in the

consumers mind. E.g. Gillete is known theworld over as an innovator in shavingsystems.


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BRANDING

A product may die but the brand willsustain. Products are introduced, they live and

disappear but the inner core value of theoriginal brand endures.


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BRANDINGA brand is a living memory.

The content of the brand grows out of thecumulative memory of various acts,provided they are governed by a set of unifying ideas or guidelines.

This is the reason why the brand imagevaries from generation to generation.


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CO NSTITUENTS OF A

BRANDAttributesAttributesBenefitsBenefits

ValuesValuesCultureCulturePersonalityPersonality

User User


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MISC O NCEPTI O NS AB O UT BRAND

. Brands are built mainly throughadvertising/marketing.

Re-mark-able product. Customer Experience is key - in service

economy. Experience is defined as sum of all

encounters.


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Brands are the responsibility of the marketing department.

Advertising not most important brand buildingtool.

Companies need to deliver on their position/promise.

Delivering on promise requires everyone. Must be owned by the CE O .


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Brands are used primarily toinfluence customers.

Develop with customer in mind. Grow by leveraging with all stakeholders.


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trademarktrademarka brand that has been givena brand that has been given

exclusive legal protectionexclusive legal protection - - namenameand the designand the design

copyrightcopyrightmusic, or words that are givenmusic, or words that are givenlegal ownership by the author legal ownership by the author


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The Most Valuable Global

Brands:2009The top ten are:1. Google2. GE3. Microsoft4. Coca-Cola5. China Mobile6. IBM7. Apple8. McDonalds9. Nokia10. Marlboro


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Best Global Brands 2008 - Interbrand2008 2007 Brand 2008 2007 Percentage Company

Rank Rank Brand Brand Increase ownershipValue Value

1 1 Coca-Cola 66,667 65,324 2 U.S.

2 3 IBM 59,031 57,091 3 U.S.

3 2 Microsoft 59,007 58,709 1 U.S.

4 4 GE 53,086 51,569 3 U.S.

5 5 Nokia 35,942 33,696 7 Finland

6 6 Toyota 34,050 32,070 6 Japan7 7 Intel 31,261 30,954 1 U.S.

8 8 McDonald's 31,049 29,398 6 U.S.

9 9 Disney 29,251 29,210 0 U.S.

10 20 Google 25,590 17,837 43 U.S.


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Indias most trusted brands1. Nokia2: Colgate3: Lux4: Lifebuoy5: Dettol6: Horlicks7: Tata Salt8: Pepsodent

9: Britannia10 : Reliance Mobile

Source : The Economic Times


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Best Indian Brands in Asia-Pacific2010

1. AMUl 73 rd Rank2. Kingfisher 140

3. ICICI Bank 1824. SBI - 2265. Tata -256

- Media magazine


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Selecting a brand nameA brand name should reflect directly or indirectly someaspects of the product benefits and functions. Eg. Durocel, EZEE, Good Knight,

It should be distinctiveIt should be easy to pronounce and remember (not likeBenadryl)It should be legally protected Not like India, Al Qaeda,

It should not carry any poor meanings in other languages.(Nova means it wont go in spanish speaking countries)Chavrolet launched N O VA only to learn that in Spanishthe brand means Does not work!


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Volkswagen with it Jettamodel, whichmeans bad luck in ItalyW ell-known Italian mineral water brandTraficante in Spanish means a drugdealer.Mitsubishis 4x4 Pajero vehicle=In Spain

and Argentina, they had to changePajero to Montero as it translates to:poor meaning


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Advantages and disadvantages of branding

A brand name denotes uniform quality. W ith it, theconsumer has the assurance of quality when hebuys the products having a particular name

Brand names make shopping easier.The customer has to spend less time and energy inbuyig, as brand names make product identificationeasier.

- Competition among brands can and does, in duecourse of time, lead to quality improvement

- Purchasing of socially visible brand gives immense

psychological satisfaction to the buyer.

Advantages tor consmers:


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Disadvantages to Buyers

The product price tends to go upManufacturers, taking advantage of the

popularity of their brand names, mayreduce the quality graduallyBranding creates confusion. Consumersare not able to decide which brand is bestin quality, because all the brands claim tobe the best ever in quality.


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Can be sold prepackaged hence specificquality levels can be assured

O pportunity to communicate specific brandbenefitsO pportunity to appeal to specific market

segmentsReady value in M&A transactionsSource of financial returns

Source of competitive advantage


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Critical features of brandsIntangibleExist at a perceptual level W hether a brand has been created or not is

determined by the consumer. (m anufacturers may invent the brand na me,

advertising and positioning, but if the consu mer does not perceive the brand as such ( i.e. adifferentiated product), a brand HAS NOT beencreated)


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Types of brandsConsumer brands (most fall in thiscategory) e.g. Nike, Pantene,Mercedes, etc.Industrial brands e.g. Xerox, Caterpillar,Boeing, Airbus, etc.

Service Brands e.g. British Airways,F edex, UPS, LIC, Citibank, etc.


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Types of brandsCorporate Brands e.g. GE, Disney,

H oneywell, etc.Retail brands e.g. Big Bazaar, W al Martetc.Person brands e.g. Shah Rukh Khan,Tendulkar, Michael Jordan, Jennifer Lopez, etc.


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W hat are the brandsbenefits?

F unctional level does the productperform as it is supposed to perform primary benefits e.g.C olgate clean teeth, whitening, freshbreath, protect against gu m disease,

etc.


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Brand benefitsEmotional level does using this brandgive me emotional satisfaction secondary benefits.D o I feel self-confident after using C olgate ?D o I feel desirable in my Killer jeans?


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Product vs. Brand

A product is something that is made in a factory

A b rand is something that is b ought b y a customer.

A product can b e copied b y a competitor.

A b rand is unique.

A product can b e quickly outdated.

Asuccessful

brand

is

timeless.


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In ConclusionToday almost everything is brandedBrands cannot be seen, heard or felt intangible and exist in your mind Logo, symbol and brand name attempt to

give the brand a physical identity

Manufacturers / sellers do not createbrandsConsumers create brands

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