BRANDMANAGEMENT

(TEXT & CASES)

Prof. (Dr.) NIRAJ KUMARM.Com.(Bus.Admin.), Ph.D., LL.B.,A.M.S.P.I., F.M.S. P.I., F.A.I.M.C.,

GOLD MEDALIST, National Awardee & Paul Harris FellowAdvisor: Columbia Holistic University, California, U.S.A.

Former Head & DirectorDepartment of Business Administration

University of Lucknow

PARAS TRIPATHIB.Com. (Hons), M.Com., M.B.A.

Assistant ProfessorLucknow Christian Degree College

Lucknow

MUMBAI NEW DELHI NAGPUR BENGALURU HYDERABAD CHENNAI PUNE LUCKNOW AHMEDABAD ERNAKULAM BHUBANESWAR INDORE KOLKATA GUWAHATI

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Preface

Looking out into the world today, it’s easy to see why brands are more important now than at anytime in the past 100 years. Brands are psychology and science brought together as a promise mark asopposed to a trademark. Products have life cycles. Brands outlive products. Brands convey a uniformquality, credibility and experience. Brands are valuable. Many companies put the value of their brandon their balance sheet.

Why? Well you don’t have to look very far. When Tata Motors of India bought Jaguar and RangeRover from Ford, what did they buy? Factories? Raw Materials? Employees? No Goldman Sachs andMorgan Stanley helped Ford sell the brands to Tata for $2.56 billion, and the brands were worth morethan all other ingredients combined.

Likewise, when Kraft bought Cadbury for $19.5 Billion what did they buy? The chocolate? Thefactories? The recipes? The candy makers? No they bought the brands.

And when Four Seasons Hotels, Inc., a Canadian-based international luxury, five-star hotelmanagement company, sold itself to Bill Gates and Prince Al-Waleed bin Talal of Saudi Arabia for$3.8 billion what did they buy? Locations? Restaurants? Staff? Beach front property? No they boughtthe brand.

The list goes on with many examples such as InBev acquiring Budweiser to add to their house ofbrands that includes Stella, Becks and Labatt. Or Geeley Motors of China acquiring cult Swedish Autobrand Volvo or Mahindra of India buying Ssangyong, Korea’s third largest car company.

Your brand is how customers recognize your company, your product, your service and yourreputation. Your company works hard to ensure customers are happy with its products and services.Your brand associates your products and services with the goodwill and loyalty you have earned withyour customers.

Branding is fundamental. Branding is basic. Branding is essential. Building brands buildsincredible value for companies and corporations.

The world has come online and there are many new markets and a growing middle class in placeslike India, China, Brazil, Russia, South Africa, Nigeria, and Indonesia and in many more places. Theseconsumers buy brands. They buy premium brands.

Branding is a way of highlighting like what makes your products or services look so attractiveand different than your competitors. Effective branding will turn your business or products intosomething unique unlike similar to others. This could be simply achieved by using a colour in yourdesign or packaging which your competitors are not using and which creates an impression in theminds of consumers.

Brand increases customer awareness of the business and its products and services, by engagingwith customers and creating a connection. Brand for a customer will indicate commitment towardsquality from sellers there by reducing time spent in coming to a purchase decision. Brand forcompanies indicate a sort of benchmark in quality as well as customer expectation and gain profit

continuously. Branded products sell at a premium compared to equally good or better productsbecause of their image. Brands enable companies to move into new market sectors effortlessly. Thevalue of brand is determined based on the profits earned for the manufacturer.

Brand management is the process a company uses to control its brand. You continue tostrengthen the association your brand imprints on your customers by making sure the look andmessage of each promotional piece supports your brand by reinforcing a specific message. Many largecorporations hire a full-time brand manager to ensure the brand is not diminished or misused. Forresellers and vendors developing a programme to consistently generate high quality promotionalpieces that strengthen brand while controlling its use can be a challenge. This is especially true whenco-branding.

Brand strengthening is about message and cadence. A steady drumbeat in the market requiresconsistent output of new content to the channel and marketplace that supports branding and co-branding efforts. Delivering the right message to support your brand is important.

Brand management is the voice and image that represents your business plan to the outside worldwidely. Developing, maintaining and protecting the brand are the important aspects of brand. BrandManagement is the application of marketing techniques to a specific product or product line toincrease its perceived value to the customer and thereby increase brand franchise and brand equity.

Therefore, in any curriculum of Marketing the importance of Brand Management is increasingday by day. The present volume has been written keeping in mind the MBA course of various IndianUniversities and Institutions. During our teaching experience we found the lack of books in this arenaby any Indian author. This prompted our keen interest to present a comprehensive volume in the handsof ever searching students. It will also help in enriching to a better understanding as to how thenumerous aspects of branding unitedly work as part of an over all system in an integrated fashion.

This book is an humble attempt to integrate the major concepts and aspects related with the brandmanagement. For students it will provide a learning opportunity to understand the concepts of brandand meet the brand building challenges.

We express our gratitude to numerous personalities albeit keeping them anonymous whose workwe have quoted in order to make the present volume more interesting for readers.

Prof. (Dr.) Niraj KumarParas Tripathi

Om Asatoma SatgamayaTamasoma Jyotirgamaya

Mrityorma Amritam Gamaya

Let Us Lead From Untruth To TruthFrom Darkness To Light

From Mortality To Immortality.

(1-3-28, Brihadaranyaka Upanishad)

Gayatri MantraOm Bhur, Bhuvah, SuvahTat Savitur Verenayam

Bhargo Devasya DhimahiDhiyo Yo Naa Prachodayat

(Yajurveda 36-3)

Om, Who is Dearer than Our BreathIs Self Subsistent.

All Knowledge and All Bless.We Meditate upon That Adorable Effulgence of the

Respledent Vivifier of the Marcrocosm, Savita,May He Illumine Our Intellects Unto The Right Path.

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Contents

Chapter 1 : Product vs. Brand 1 – 10

Chapter 2 : Concept of Brand 11 – 19

Chapter 3 : Managing Brand 20 – 39

Chapter 4 : Brand Power 40 – 49

Chapter 5 : Brand Positioning 50 – 69

Chapter 6 : Brand Extension 70 – 92

Chapter 7 : Model’s of Brand Extension 93 – 110

Chapter 8 : Brand Identity 111 – 121

Chapter 9 : Brand Image 122 – 133

Chapter 10 : Brand Picture 134 – 149

Chapter 11 : Brand Personality 150 – 163

Chapter 12 : Brand Equity 164 – 192

Chapter 13 : Brand Strategy 193 – 204

Chapter 14 : Brand Communication 205 – 224

Chapter 15 : Integrated Branding 225 – 231

Chapter 16 : Global Branding 232 – 254

Chapter 17 : Retail Branding 255 – 265

Chapter 18 : Service Branding 266 – 282

Chapter 19 : Techno Branding 283 – 292

Brand Cases 293 – 328

Brand Glossary 329 – 341

Detailed Contents

Chapter – 1: Product vs. Brand 1 – 10♦ Product or Brand♦ Brand or Product – The Difference♦ Companies Make Products and Consumers Make Brands♦ Products can be Copied and Replaced but Brands are Unique♦ Products can Become Obsolete but Brands can be Timeless♦ Products are Instantly Meaningful but Brands Become Meaningful over Time

Chapter – 2: Concept of Brand 11 – 19♦ The Origin of Brand♦ Need of a Brand♦ Brands as Signs♦ Brands as Designed Positive, Emotional Relationships

Chapter – 3: Managing Brand 20 – 39♦ Concepts of Brand Management♦ Functions of Brand Management♦ Importance of Brand Management♦ Brand Creation♦ Brand Name♦ Types♦ How Names are Chosen♦ Effects of a Brand Name♦ Localization♦ Family Branding and Multi-Branding♦ Features of a Good Brand Name♦ Process of Selecting a Renowned and Successful Brand Name♦ 10 Steps to Naming a Brand♦ Brand Attributes♦ Brand Attributes - What They are and Why You Need Them!♦ Strong Brand Attributes♦ Brand Personality♦ Brand Awareness♦ Brand Loyalty♦ Brand Association♦ Building a Brand Name Product or Service♦ Brand Extension♦ Advantages of Brand Extension♦ Disadvantages of Brand Extension♦ Co-branding♦ Types of Co-branding

♦ Advantages and Disadvantages of Co-branding♦ Brand Hierarchy

Chapter – 4: Brand Power 40 – 49♦ Roles of Brand♦ Brand Purpose♦ Brand Accountability♦ Brand Mobility♦ Brand Responsibility♦ Brand Imagery♦ Role of Brands in Consumer Markets♦ Role of Brand Names and Logos in our Consumer Driven Society♦ Brand Names Offer Consumers Information and Consistency in a Complex Market♦ Brands as Sources of Information♦ Brands as Consumer Movement♦ Brands as Consumer Protection♦ Defining Brand Expectations♦ Distinctive Position of Brand

Chapter – 5: Brand Positioning 50 – 69♦ Positioning Concept♦ Understanding of Components through an Example♦ Clarity about Target Market♦ Clarity about Point of Difference♦ Effect of Features and Attributes♦ Not Every Brand is our Competitor!♦ Positioning Statement♦ Brand Positioning Process♦ Brand Variables♦ Putting the Elements Together♦ Positioning Errors♦ Repositioning a Company♦ Brand Positioning in Four Steps♦ Abandoning the Brand’s Status♦ Research for the Market Position of a Brand♦ Brand Positioning Tips♦ Dimensions of Strong Positioning♦ Strong Positioning♦ Positioning Guiding Principles

Chapter – 6: Brand Extension 70 – 92♦ Why Brand Extension?♦ Fundamentals of Extension♦ When Should you Extend your Brand?♦ Brand Extension Examples♦ Today’s Definition of Brand Extension♦ Line Extension♦ Brand Diversification/Extension/Stretching

♦ Line Extension♦ Forms of Line Extension♦ Positive Side of Line Extension♦ Negative Side of Line Extension♦ Reaction to Negative Side of Extensions♦ Immediate Actions for Better Managing Line Extensions♦ Category Extension♦ Brand Extension Advantages♦ Disadvantages of Brand Extension♦ Extension Guidelines Based on Academic Research♦ Factors to be Considered for Brand Extension

Chapter – 7: Model’s of Brand Extension 93 – 110♦ Kapferer Model♦ Aker Model♦ Keller’s Brand Equity Model♦ Taylor’s Model♦ Blom Model♦ Developing the Model♦ Limitations

Chapter – 8: Brand Identity 111 – 121♦ Necessity of Brand Identity♦ The DNA of your Brand♦ Sources of Brand Identity♦ Brand Identity Prism (Kapferer)♦ Brand Identity Process♦ Building a Brand Identity is Like Building a Home♦ Method is Crucial♦ Custom Home vs. Track Home

Chapter – 9: Brand Image 122 – 133♦ Brand Identity Versus Brand Image♦ Why Brand Image?♦ Building Brand Image♦ Communication♦ Brand Dimensions♦ Brand Manifestations♦ Brand Value at the Core of Brand Characteristics♦ Layers of Brands♦ Commitment of Top Management (Brand Owners’ Commitment)♦ Brand Identity Prism♦ Pepsi’s Sources of Brand Equity

Chapter – 10: Brand Picture 134 – 149♦ Brand Associations♦ Brand Image♦ Importance of Being at Pinnacle

♦ Leveraging from the Pinnacle♦ Pinnacle Testifies Right Image♦ From Pinnacle to Bottom♦ Determination of Attributes and Benefits♦ Need-Based Segmentation Research♦ Population to be Researched and Relevant Questions Asked♦ Purpose Served by Asking the Right Questions♦ Keys to Developing Associations♦ What is after the Brand Pinnacle?♦ Is New Category Needed?♦ Brand Persona♦ Need to Create the Right Traits♦ Personality Traits through Research♦ Brand Contract♦ The Need to Stay Contemporary♦ Brand Contract Requirements♦ How to Create a Brand Contract?♦ Need for Upholding the Contract♦ A Hypothetical Brand Contract♦ Brand Contract Principles♦ Crafting a Brand-based Customer Model♦ The Model Should Conform to Value Pyramid♦ Three Primary Questions♦ Brand Based Customer Model

Chapter – 11: Brand Personality 150 – 163♦ Every Brand has a Personality♦ Difference between Brand Personality and Brand Image♦ Brand Personality - How Created?♦ Advantages of Brand Personality♦ Brand Personality and User Imagery♦ Integrated View♦ Importance of Brand Personality♦ Brand Persona♦ Persona Examples♦ Need to Create the Right Traits♦ Personality Traits through Research♦ Brand Ambassadors♦ Brand Personality - The Binding Force♦ Relationship Building and Brand Personality♦ Brand as a Friend♦ Brand Awareness♦ Brand Loyalty♦ Brand Association♦ Brand Promise

Chapter – 12: Brand Equity 164 – 192♦ Concept of Brand Equity♦ Aaker’s vs. Keller’s Concept of Brand Equity♦ Brand Equity vs. Brand Value♦ Brand Equity Benefits♦ 5 Stages of Brand Experience♦ Brand Review♦ Brand Review Benefits♦ Positive Brand Equity vs. Negative Brand Equity♦ Brand Value♦ Brand Value Defined♦ Roots of Brand Value♦ Benefits to Build Brand Value♦ Brand Value Magic♦ Creating New Brand Value♦ Brand Value Chain♦ Protecting Brand Equity♦ Transferring Brand Equity Online♦ Brand Equity Management System♦ Building Brand Equity♦ NaMo: The Rising Brand Equity♦ Brand Equity & Customer Equity♦ Customer Brand Insistence♦ Brand Equity Measurement♦ Determining Brand Value♦ Determining Brand Equity♦ Creating Brand Value♦ Creating Brand Equity♦ Improving Value♦ Brand Value Measurement

Chapter – 13: Brand Strategy 193 – 204♦ Brand Strategy Defined♦ Creating Customers is a Strategic Act♦ Defining Your Brand♦ Is Branding a Strategy?♦ Redefining Branding Strategy♦ Developing Appropriate Brand Strategy♦ Brand Marketing Strategy♦ Number of Brands for a Company♦ Gen-Y Brand Strategy♦ Connecting on an Emotional Level♦ Banking Brands♦ Brand-Customer Relationship: The Face of Your Business Strategy♦ There's No Escaping Your Brand♦ Intellectual Property Rights (IPRs)♦ Difference between Discoveries and Inventions

♦ Development Process for New Products♦ Hofstede Model for Understanding the Core Values of a Brand

Chapter – 14: Brand Communication 205 – 224♦ What is Brand Communication?♦ Consumer Culture - The Messages Filter♦ Semiotics♦ Brand Perception♦ Figure and Background♦ Perceptual Grouping♦ Advertising♦ Advertising Approaches♦ Advertising Effectiveness♦ Advertising Must Shift from Monologue to Dialogue♦ Media Type Selection♦ Above the Line Media♦ Press♦ Radio♦ Television♦ Cinema♦ Outdoor and Transport♦ Below the Line Media♦ Point of Sale♦ Public Relations♦ Direct Marketing♦ Packaging♦ Four Core Packaging Qualities♦ Shape, Size and Proportion♦ Material and Texture♦ Colour and Transparency♦ Graphics♦ Dispense-in-home Branded use Experience♦ Disposal-re-use or Recycle and the Environment♦ Working with Agencies♦ Choosing an Agency♦ Brand Communication Strategy

Chapter – 15: Integrated Branding 225 – 231♦ What is Integrated Branding?♦ What does the Process Look Like?♦ How Integrated Branding Benefit Organization?♦ Integrated Branding Is Not a Simple Task♦ Integrated Branding Increase Customer Loyalty♦ Integrated Branding Isn’t Just Not Advertising♦ Integrated Branding Isn’t Just Communication♦ Integrated Branding is Multidisciplinary♦ Integrated Brand Building Requires Market Understanding

♦ Typical Integrated Branding Scenarios♦ The Road to Market Dominance♦ Using Brand to Build Awareness

Chapter – 16: Global Branding 232 – 254♦ Global Branding Versus Local Marketing♦ Motivation for Global Branding♦ Advantages of Global Marketing Programs♦ Disadvantages of Global Marketing Programs♦ Internet and Global Brand♦ Building a Successful Global Brand♦ Global Customer-Based Brand Equity♦ Building Global Customer-based Brand Equity♦ Global Brand Strategy♦ Five Strategies for a Successful Global Brand♦ Glocial Strategy♦ Global, Local and Glocal Strategies♦ Think Local, Learn Global Act Global♦ The Strengths♦ The Vulnerabilities

Chapter – 17: Retail Branding 255 – 265♦ Concept of Retail Brand♦ Growth of Retailer Brands♦ Retailing and India♦ Changing Dynamics of Retail Branding♦ Important Criteria in Retail Branding♦ Retail Brand Development Strategy♦ Retail Branding Strategies♦ Other Retail Branding Strategies♦ Private Labels♦ Different Pricing Strategies for Private Labels♦ Positioning Strategies♦ Retail Value Chain

Chapter – 18: Service Branding 266 – 282♦ Services Marketing Mix♦ Characteristics of Services♦ Service Branding Challenges♦ Applying Service Elements♦ Brand Image and Identity♦ Service Branding vs Product Branding and the Role of Marketing♦ The Difference between Services and Products♦ Hard Side of Service Selling♦ Solutions♦ Challenges in the Branding of Services♦ Model for Service Branding♦ Brand Awareness

♦ Brand Meaning♦ Presented Brand♦ External Brand Communications♦ Word-of-Mouth♦ Publicity♦ Customer Experience with Company♦ Brand Delivery through Staff♦ Customer Participation

Chapter – 19: Techno Branding 283 – 292♦ Technology Branding is Different♦ Consumer Branding is One Thing, Techno Branding is Another♦ What Techno Branding Takes from Consumer Branding♦ Differences between Consumer and Technology Products♦ Difference between Consumer and Technology Brand-building♦ Importance of Techno Branding♦ Peculiar Aspects for Techno Branding♦ Brands and Customisation♦ Brand Image and Customer Relationships♦ Role of Testimonials♦ Building Techno Brands♦ Brand Ladders♦ The Techno Branding Process♦ How Does Techno Branding Get Results?♦ Adopt Techno Brand Management♦ Creatively Implementing Techno Branding♦ Which Comes First, Brand or Corporate Culture?♦ Techno Branding Service Businesses♦ World Names for Techno Brands♦ What's in a Logo?

Brand Cases 293 – 328♦ Case 1 : Beat the Heat♦ Case 2 : Beyond Bachchan: Brand Ambassador♦ Case 3 : The Coca-Cola Challenge♦ Case 4 : Brand Extensions of Refrigerators♦ Case 5 : Kill a Rival or Keep It Alive♦ Case 6 : ACER - The Story of a Successful Asian Brand♦ Case 7 : Securing the High Ground: Louis Philippe♦ Case 8 : Divide and Rule: VIP Industries♦ Case 9 : Neel Kamal Electronic (NKE)♦ Case 10 : When the Tail Wags: The Dog♦ Case 11 : Die Reebok Difference

Brand Glossary 329 – 341

Often, confusion exists around the concept of product and brand. Are the two same or different? If product is notsame as brand, then what distinguishes the product from the brand? The fundamental essence of this debate is toincrease marketing effectiveness. Sometimes, confusion leads to faulty decisions.

Coke is a brand or a product? It is relatively confusing in telling the difference between a brand and a product.Basically companies make products which are purchased by consumers but brands are built through consumerperceptions, expectations, and experiences about particular product. For example, Honda is a company whichmanufactures cars. So, cars are the product of Honda and it is the good image.

As human beings could be different by their face, height, colour and specially which makes them superior toothers is power of knowledge, personality, goodwill, honesty etc. Same is true to the brands though the product may bethe same.

A product is anything that can be offered to a market to satisfy a want or need. Marketed products include physicalgoods like salt and pepper, services like banking and insurance, experiences like theme parks, events like shows andexhibitions, persons like political candidates, or organizations like UNESCO. The concept of product is broad. Itincludes anything which is offered for the purposes of satisfying consumer needs or wants. What underlies this broadconcept of product is that it should not be viewed narrowly to include physical goods only. A broadened concept allowsa person to think along marketing lines, though one may not be selling physical goods. That is, marketing is applicableto a variety of situations where exchange occurs.

Product is simply a tangible good/thing/substance which fulfills our needs and wants. Whereas to differentiate theproducts, a brand name is given to each product just like all human beings and everyone has a specific name.

Product is made by the company in the factory and is purchased by the consumers in exchange of money, however,Brands are bought and built by the consumers. Products can be quickly outdated but Brands are long lasting, timelessand unique. In other words, brand is what differentiates a product from other competitive products in the marketplace.Product is an object but brand is composed of a name, trademark, logo, and other visual elements such as images,colours, and icons. Laptop is a product and Apple is a brand.

For us, a product is something that can be found everywhere. You move your eyeballs and you’ll find thousandsof products placed in shops. But when you go out of your way, to that one shop, out of the thousand other shops thatcaught your eye, that’s when you know you’re making your way towards a brand and not a product. A product doesn’tbecome a brand at the drop of a hat, it takes time. A lot of time. And surviving that time isn’t easy. A lot of productsfail during that course of time but the ones that stand till the end, are the ones that are called brands!

Chapter1

PRODUCT VS. BRAND

Products are something which satisfies needs and wants, but brands are just more than product. Products are thosethings which firms create, communicate to customers and enter marketplace (products include services). However,brands are how these products are perceived by its intended target audience. Brand is subjective concept whereasproduct is objective concept. Products can be copied but brands are unique, they cannot be copied. In short, productsare made by the companies but brands are made by the consumers. Suppose if you bought Nokia phone, then cell phoneis product and Nokia is brand.

Product refers to goods/services offered by an organization to satisfy the need, want, and demand of a certainindividual or market whereas branding refers to set of activities an organization carries out in order to create either aimage of the company or product or both in the mind of prospective users/buyers.

Marketers are often trapped in the commodity mentality. The emphasis on the manufactured product leaves themwith commodity-like offerings which tend to be indistinguishable and undifferentiated. In his classic article‘Differentiation of Anything’ Levitt proposes that “there is no such thing as a commodity. All goods and services canbe differentiated and usually are.” The differentiation opportunities could be uncovered by exploring what a product isin its customer getting and customer satisfying entirety’. The product should be visualized to be having four levels. It isa range that offers differentiation opportunities.

In economics and commerce, products belong to a broader category of goods. The economic meaning of productwas first used by political economist Adam Smith.

A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy aneed or want. Thus, a product may be a physical good like a cereal, tennis racquet, or automobile; a service such as anairline, bank, or insurance company; a retail outlet like a department store, speciality store, or supermarket; a personsuch as a political figure, entertainer, or professional athlete; an organization like a non-profit, trade organization, orarts group; a place including a city, state, or country; or even an idea like a political or social cause. This very broaddefinition of product is the one we adopt in the book. Thedore Levitt in ‘Marketing Success Through Differentiation ofAnything’, Harvard Business Review, January-February, 1980, pp. 83-91 stated thus: “We can define five levels ofmeaning for a product:

1. The core benefit level is the fundamental need or want that consumers satisfy by consuming theproduct or service.

2. The generic product level is a basic version of the product containing only those attributes orcharacteristics absolutely necessary for its functioning but with no distinguishing features. This isbasically a stripped-down, no-frills version of the product that adequately performs the productfunction.

3. The expected product level is a set of attributes or characteristics that buyers normally expect andagree to when they purchase a product.

4. The augmented product level includes additional product attributes, benefits, or related services thatdistinguish the product from competitors.

5. The potential product level includes all the augmentations and transformations that a product mightultimately undergo in the future.”

A product can be classified as tangible or intangible. A tangible product is a physical object that can be perceivedby touch such as a building, vehicle, gadget, or clothing. An intangible product is a product that can only be perceivedindirectly such as an insurance policy.

Intangible Data Products can further be classified into Virtual Digital Goods (“VDG”) that are virtually located ona computer OS and accessible to users as conventional file types, such as JPG and MP3 files, without requiring furtherapplication process or transformational work by programmers, and as such the use may be subject to license and/orrights of digital transfer, and Real Digital Goods (“RDG”) that may exist within the presentational elements of a dataprogram independent of a conventional file type, commonly viewed as 3-D objects or a presentational item subject touser control or virtual transfer within the same visual media program platform. Open Source Code, GNU Linux, or evenAndroid, may manipulate and/or convert base Virtual Digital Goods (“VDG”) into process-oriented Real Digital Goods

(“RDG”), as part of an application process or manufactured service that may be viewed on Personal Data Assistant(“PDA”) or other hand-held tangible devices or OS computer.

A third type in this is services. Services can be broadly classified under intangible products which can be durableor non-durable. Services need high quality control, precision and adaptability. The main factor about services as a typeof product is that it will not be uniform and will vary according to who is performing, where it is performed and onwhom/what it is being performed.

The generic product is something very basic or a ‘rudimentary’ substantive thing. It is an entry ticket to themarketing playfield. It is the product in its naked form, for example, a pen that just offers writing capability and nothingmore. But the buyer may not need merely a writing instrument; he probably expects something more. In fact, anoffering is not a product unless there are takers for it. Customers expect more than generic value. This leads to thesecond product level, i.e., the expected product. The product must satisfy consumers’ ‘minimal’ expectations. There area set of attributes or features which would make a buyer consider a product. Buyers expect the pen to be priced right,give trouble-free writing, and be leak-proof. With this level, the consumers’ angle enters the picture. The scope ofdifferentiation does not come to an end by providing the buyer the expected product. The product can be augmented byproviding him with more than he expected. The expectations are formed due to industry practices. Customers becomeaccustomed to what to expect and what not to expect. By offering more features, benefits or services, a marketer canaugment the product, e.g., the pen manufacturer may offer a lifelong guarantee on the pen’s mechanism. Finally, thehighest level of product is called potential product level. It refers to augmentation that a product might undergo infuture. That is what remains to be done.

From a marketing perspective, a product is anything that can be offered to a market constituted by potentialcustomers that might satisfy a want or need. In retailing, products are called merchandise. In manufacturing, productsare bought as raw materials and sold as finished goods. Commodities are usually raw materials such as metals andagricultural products, but a commodity can also be anything widely available in the open market. In projectmanagement, products are the formal definition of the project deliverables that make up or contribute to delivering theobjectives of the project. In insurance, the policies are considered products offered for sale by the insurance companythat created the contract. From a business perspective, a product is any good, artifact or service which can be boughtand sold.

A product can be defined as “Something produced by human or mechanical effort or by a natural process”. Itcould be tangible or intangible like soap is tangible and a service is intangible.

Product actually is what we are providing to consumer and brand is what they prefer. Popular product usuallybecome brand and brand name used to refer to the product. Brand have some specific properties like it cannot be copied,consumer makes brand, its timeless and they become meaningful with passage of time. For example, product isbeverages and the brand is Pepsi.

Product or BrandOver the years, the concepts of marketing have matured and ripened. The laws of marketing have defined some

key terms of businesses and distinguished key terms in a very convenient manner. As a result, today we candifferentiate in the meaning and essence of product and brand.

A product is a generic term used for different commodities bearing similar characteristics up to a certain level.Mefenamic Acid is a product which is used as pain killer but when the same product bears the mark of Ponstan Forte, itbecomes a brand. A brand actually augments the product by adding both tangible and intangible features to it. A brandis based on how it is positioned, imaged and portrayed to the audience. On the other hand, product basically fits to thephysical or chemical structure of the issue.

The brand name is quite often used interchangeably with “brand”, although it is more correctly used to specificallydenote written or spoken linguistic elements of any product. In this context, a “brand name” constitutes a typeof trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services.

A brand owner may seek to protect proprietary rights in relation to a brand name through trademark registration andsuch trademarks are called “Registered Trademarks”.

Brands on the run by Belinda Arche (The Guardian, 2000) explicitly states that, “The principle difference betweenan ordinary product and a brand is the intangibles beyond the product itself. Product plus personality equals brand.” Forexample, consider a person simply buying a bottle of water as compared to a health and hygiene conscious personpurchasing Nestle Pure Life. People have certain “associations” with the “brand” as compared to simply a physical itemor even an unbranded service. Experiential Marketing (2009) by Shaz Smilansky on page 54 talks about the importanceof the imagery, advertising and packaging associated with the product forming the brand personality. For example,Mountain Dew creates an adventurous personality of its brand with its TVCs. Also, Tarang defines itself to the massesby using vibrant colours in its packaging.

Brand name can be used to refer to products. Products is made by a company for consumers. For example,Toyota’s product is cars and brand name is Toyota. Products can be copied and adaptable and flexible to change butbrands are unique. Brand usually exist for longer period of time while products are instantly meaningful.

Brand nowadays represents our lifestyle, we feel comfortable with a certain brand; we feel more comfortable withbranded product and also it gives self-esteem.

Brand is the “name, term, design, symbol, or any other feature that identifies one seller’s product distinct fromthose of other sellers.” Initially, branding was adopted to differentiate one person’s cattle from another’s by means of adistinctive symbol burned into the animal’s skin with a hot iron stamp and was subsequently used in business,marketing, and advertising. A modern example of a brand is Coca-Cola which belongs to the Coca-Cola Company.

To recapitulate, Brand is the appearance of a company and Product is selling in the market to generate profits andalso create image for a certain Brand.

Brand is consumer’s perception and experiences with the product or service. Product is manufactured by company,e.g., Fri chicks offers all food items of fast food just like KFC. KFC is a brand as most of the consumers rely and feelcomfortable to go for it when they looking for crispy fried chicken items.

Brand is basically intangible, where as a product is tangible. Product can be a product or a service. Product can becopied but brand are unique. A brand helps to recognize a product or service. BRAND is a face of a company andPRODUCT is simply that what company is selling.

Products are sole, to the consumers whereas brands are created in the minds of the individual. The reason thatproducts and brands are sometimes confused with each other is because a good product embodies the characteristics ofits brand in order to stand out in the market. Brands and products go hand in hand because when a consumer buys aproduct they expect to have a positive and complete brand experience as that is what contributes to consumerperception. If they get all that they expected, they are sure to explore other products of that brand as a relation of trust isbuilt between the consumer and the brand.

Company usually make products and we (consumers) make it a brand, when a consumer buy a certainproduct/service, he has some expectations, perceptions and emotional associations associated to that product/servicethat help it to build a brand, you can copy a product, but brands are always unique in its nature and perception and cannot be copied. The other major difference is that every product has a life-cycle, but brands can be timeless and possessinfinite life. Brands are not build overnight, its take a long time to make a brand. Example is “Olpers” that was justmilk at the time it came into market. Now it has become a brand, a perception that people want to experience.

Difference between a product and a brand is beautifully explained by Keller that a product is anything which isoffered to the public for consumption, i.e., satisfying their needs or wants. Now, this product is not necessarily always atangible thing as an idea like a social cause could be a product too. Now, we already know that there are variousproducts of the same kind in a single category so brand then is this difference between products of the same categorysatisfying the common needs.

Another difference between a product and brand is that a product refers to the physical object produced either aphysical or a service. Whereas, brand refers to the title given to the certain product or services that is recognizable to

the consumers. Product is a complete bundle of benefits or satisfaction that buyers identify when they purchase theproduct. A brand, on the other hand, puts an impression to the consumer on what to expect from the product or servicebeing offered. However, a product can be quickly outdated but a successful brand is timeless.

Brands’ and products’, difference is very simple. Brands are the makers of products. Brands are timeless butproducts get obsolete. Though brands get recognized by the products, they make and launch in the market like it issimple that products get a boom in their intial stages and then they keep on lingering on. Therefore, products can bereplaced or copied by other brands but brands are timeless. For example, when first Video Home System (VHS) came,there was a boom but with the coming of DVD, VHS got obsolete and today, most people buy their music in digitalformat and listen to it on their iPods. The HMV brand is timeless, but no one buys HMV music on records anymore.

“Brand” is the face of a company and “Product” is whatever company is selling in the market togenerate revenue.

A product is anything that can be offered to a market constituted by potential customers that mightsatisfy a want or need. From a business perspective, a product is any good, artifact or service whichcan be bought and sold.

A brand is a symbol, name, graphic identity and logo type that allow the effective identification of onecompany, product or service from its competitors and is able to create an emotional response in theminds and hearts of its customer base.

A brand is the product’s identity, is built around a perception of a product and it represents the firstkey differentiator of a product in a crowded and highly competitive market.

An anonymous said: “Blackberry batteries last longer than relationships these days.” Brands establishrelationship with their customers by providing them products for their stated and unstated needs, thusforming their “Cults” and creating obsession about them.

Fig. 1: ProductsProduct is something which is present in the market and can be bought or sold. For example, mobile phones, car

etc. Whereas a brand is a name of a product which is present in consumer’s mind. A product satisfy consumer’s needsand wants whereas a brand gives a consumer an extra bit of satisfaction and confidence. If we take example amongst allother mobile phone brands, Blackberry gives me an extra bit of satisfaction, confidence and pleasure as compared toother brands, say IPhone or any other Android phone and important thing to note here is that product (mobile phone) isthe same.

We quite often hear “I don’t need a brand. I need a product.”

Before discussing the validity of the quote, let us look more closely at the words this prospect used. The termsbrand and product are used casually, and we all know — or think we know — what they mean.

In the dictionary of the American Marketing Association, a brand is defined as a “name, term, design, symbol, orany other feature that identifies one seller’s good or service as distinct from those of other sellers.”

Our definition speaks more to how brands actually work: “It’s everything that a brand consumer retains in theirmind about a product or service.”

James explains: “Brands are often evoked or symbolized using a visual handle or logo. The logo is a symbolicshorthand for all the past experience and messages you have received about that brand. Whatever distillation of thesememories and experiences that you have somehow kept in your mind — that’s the brand.” Below are some examples ofhighly successful commercial brands as expressed through the shorthand of their logos: 3M, Disney, McDonald’s,Coca- Cola, Hewlett-Packard, and Apple.

Take a second, and look at them. In each case, you see and understand more than the simple shapes and colours ofwhich they are comprised. You read into them your experience of that brand. The mark is a trigger for a mental modelyou have derived from your experience with that company or its products.

Fig. 2Product is defined by the American Marketing Association as, “Bundle of attributes (frames, functions, benefits,

and uses) capable of exchange or use; usually a mix of tangible and intangible forms. Thus, a product may be an idea, aphysical entity (a good), or a service, or any combination of the three. It exists for the purpose of exchange in thesatisfaction of individual and organizational objectives.”

Now, take a look at the following nearly universally-known products belonging to the same consumer brands:

Fig. 3When saying “I don’t need a brand. I need a product,” the speaker was saying she doesn’t need McDonald’s, she

just needs fries — any fries for that matter. She doesn’t need HP, she just needs a computer or printer — any computeror printer will do. She’s assuming her consumers will behave this way. I think they will not.

In the commercial world, I walk into a store and look at a printer, for example. If it has no brand, all I can see isthis product. I can try to calculate whether or not I should buy it by evaluating what it looks like, what the productdescription says, and how expensive it is. Maybe I can test it by printing something, but that’s basically it. All I can seeand all I can buy is this product, without knowing anything really about the quality of the materials used to build it, theprecision and know-how of the people who made it, its reputation, and for how long I should expect it to last.

When I am looking at an HP printer, I also see what it looks like, what the product description says, and howexpensive it is. But when seeing that logo, I understand much more than simply the thing sitting there in front of me. Iknow that the company behind this product has been healthy and vibrant for many years (70 in fact). I also know thatHP stands for integrity and honest, direct dealings. I may also know that it has persistently dedicated itself to providingits customers with the highest quality and value, and leads the marketplace by focusing on developing useful and ofteninnovative products, and perhaps even that it holds a set of values that ensure responsibility in production and respect inthe treatment of its employees. I may get all or some of this, but I also get the memory of the last HP printer that Iowned and how it worked and how long it lasted. I get all this information in a cascade that pours forth in my mindfrom the HP mark.

Of course, for this one time, I might still take a chance on a no-brand printer. Others might as well; it couldbecome a successful product. And — as is natural — in due time the demand for this product will wear off, or it willbecome obsolete, and other products will come along that do a better job of satisfying the same consumer needs. Thesebrand-less producers will then have to bring out a new product, but if they really refuse to invest in a brand, theyeliminate the continuity between this first successful product and its successor. Nothing from the first product can becarried forward in the consumer’s mind to the next. It’s a clean slate. This new product has to make it entirely on itsown. These non-branders will, in fact, have to start right at the beginning with every single new product. They cannotbuild a reputation or a history of success. They cannot evoke a promise of quality that accompanies their products ingeneral. This is purely imaginary, of course. It’s impossible to have a product without a brand of some kind. It’s more amatter of if you want a brand that is intentional or one that is created primarily by others.

Any organization or company that aims for success in the long run will need to place some focus and energy ontheir brand.

Now, let’s turn the issue around. Can there be a brand without a product? What would you sell if not a product?

It turns out that it is at least theoretically possible to sell a brand without a product. Hessian is “an invader, an ode,a brand in waiting, a pitch to the market” and currently for sale for $18,000. The brand is the product. In a morepractical example, HP was originally founded by two engineers, Bill Hewlett and Dave Packard. When they firstcreated their company, they did not have any specific product idea. They really did not know what they would actuallybe doing or selling. They eventually did come up with products to sell, and one of those products eventually got themon the road to being the successful company and over time to build the brand that we know today. In effect, they did notstart with a product, but with a brand – their name, Hewlett-Packard.

Creating a brand without a product is theoretically possible, but it should be obvious that when discussingproducts and brands, we are not really talking about an either-or situation. While the two of them can exist separately, itmakes little sense.

So let’s talk about what is the difference between a product and a brand. This is a quote from Steven King fromthe WPP Group, a big international advertising agency. A product is something that is made in a factory. A brand issomething that is bought by a consumer. A product can be copied by a competitor. A brand is unique. A product can bequickly outdated. And successful brands are timeless. And keep that in mind. Because it is all about differentiating.Here is a great example. I mean Coca-Cola is probably the premiere brand in the world. And the product on the left isprobably a good product. It’s from Safeway. But it’s just a product. There is no brand there. Let’s talk more about whatis a brand. A brand is what differentiates a product from other competitive products in the marketplace. And it’sgrounded in positioning. Remember that word positioning because it’s what that brand is in the mind of the consumer.How they think of it. It’s the personality of that brand. And ultimately the consumer positions the brand. I mean we willtry as brand managers to position it. But ultimately it is the perception of the people who buy it. And what makes acompany strong is not the product or the service, it is the position that it owns in the mind. So why is that positioningimportant? To consumers, it gives them meaningful reason to choose your brand over the competition. It differentiatesyou in a very meaningful way. And often times it will allow you to charge a premium for your product. To marketers, itis really a blueprint for how you grow that business. Remember, you are in charge of the profit and loss statement. Youare running that brand like your own small business. So it’s really the blueprint on how you go forward. How you doyour strategies. It’s the road map. And all elements of the positioning statement should be integrated to fit together tocapture the consumer insight.

Robert Bean, Chairman of leading brand consultants Banc, which has promoted such household names as theBody Shop and Covent Garden Soups, explains: “The principal difference between an ordinary product and a brand isthe intangibles beyond the product itself. A brand goes beyond functionality, it is everything around that, how it ispackaged, what it looks like, what colour it is – its personality, if you like. Put simply, product plus personality equalsbrand”.

But what really determines a brand is trust. This is why we consumers value them so highly and opt for knownnames and familiarly labeled goods over and above non-brands – because of the comfort element. They are, in effect,products with a “trust mark” rather than a mere “trademark”.

Dr. Nick Georgiades, an industrial psychologist who has worked with BA and helped BT devise the memorable“It’s good to talk” advertising campaign, says: “If you see a brand as a trust mark, it tells you that you have not been letdown by it and that you can reduce anxiety by using it. Particularly today, in this crazy world of speed and noise andconstant demands, we are all looking for a short-cut to anxiety reduction, so if you choose a trustmark you are reducingthe possibility of new anxieties.”

Georgiades explains that trust is “an historical concept” and we need “repeated interactions with associated goodfeelings” to build it; indeed, branding experts suggest it takes at least three years to establish this feeling of goodwillamong consumers. But we don't need to have directly experienced something ourselves. Our mums, say, might havealways used Nivea face cream and now enjoy an impressively wrinkle-free old age, hence we might plump for Nivea asa result.

The right formula is good products supporting and supported by a strong brand. An effective brand enables aproduct to be much more than just a product, and a good product shows that a brand is more than marketing or emptypromises. Together they provide the foundation for sustained success.

When it comes to commercial brands, I imagine the ideal interaction between products and a brand to start with asuccessful product. The success of this product directs the consumers’ attention to the supporting brand, and thuspromotes the successful development of that brand — building its value. Then it is the success and reputation of thebrand that directs the customers’ attention to other products by that same brand.

This is a continuum that when working properly can build a strong and recognizable brands. The process is reallyno different for any kind of business, non-profit or organization of any kind.

“A strong brand is not a luxury to be enjoyed only by companies like Nike or Coke. It is a key factor in thesuccess and prosperity of all businesses and non-profits regardless of their revenues.”

Brand or Product – The DifferenceThus, on the basis of above discussion, there are several fundamental differences between a brand and a product

(or a service). If you can make the distinction between the following differences, you’re on your way to understandingproducts versus brands.

Of course, it is important to understand that popular products can become brands unto themselves and brandnames can be used to refer to products. While it can get a bit confusing, the fundamental differences between productsand brands identified below should help you clear up some of that confusion.

Fig. 4: Product is Not Brand

Companies Make Products and Consumers Make BrandsA product is made by a company and can be purchased by a consumer in exchange for money while brands are

built through consumer perceptions, expectations, and experiences with all products or services under a brand umbrella.For example, Toyota’s product is cars. Its umbrella brand is Toyota and each product has its own more specific brandname to distinguish the various Toyota-manufactured product lines from one another. Without a product, there is noneed for a brand.

Products can be Copied and Replaced but Brands are UniqueA product can be copied by competitors at any time. When Amazon launched the Kindle e-reader device, it didn’t

take long for competitors to come out with their own branded versions of an e-reader product. However, the brandassociated with each e-reader device offers unique value based on the perceptions, expectations, and emotions thatconsumers develop for those brands through previous experiences with them.

Similarly, a product can be replaced with a competitor’s product if consumers believe the two products offer thesame features and benefits. Products with low emotional involvement are typically easily replaced. For example, do youreally care what brand of milk you buy or do you primarily just care that the milk you buy is fresh and includes the fatpercentage that you want?

Fig. 5: Generic vs. Branded

Products can Become Obsolete but Brands can be TimelessRemember VHS players? With the introduction of DVD players and more recently DVR devices and streaming

video services, VHS players have become obsolete. The same thing happened to 8-track tapes, vinyl records, cassettes,and CDs. Today, most people buy their music in digital format and listen to it on their iPods. The Elvis Presley brand istimeless, but no one buys Elvis music on cassettes anymore.

Products are Instantly Meaningful but Brands Become Meaningfulover Time

When you launch a new product, it’s easy to make that product instantly meaningful and useful to consumersbecause it serves a specific function for them. However, a brand is meaningless until consumers have a chance toexperience it, build trust with it, and believe in it. That’s why the 3 steps to brand building include consistency,persistence, and restraint. It takes time and effort to convince consumers to believe in your brand.

Consider Google as an example. When Google first hit the Internet scene, it offered a simple product — a Searchengine. That product was instantly meaningful to consumers because it helped them find information online quickly.However, the Google brand didn’t become meaningful to consumers until people had a chance to use the GoogleSearch engine product and see for themselves that it really was a better search engine. Through those experiences,consumers began to trust that the Google brand could deliver faster and better information online. Today, when Googlelaunches a new product (like Google + recently), people are quick to try those products because they trust the Googlebrand.

To make the myth more simple, a PRODUCT is like the ice cream that I can have from the store couple of blocksaway, but BRAND is something that compels me to drive for more than 30 minutes, burning fuel more than the cost ofMcFlurry!!!

Fig. 6: Brand vs. ProductWe would say Brand is what we call the intangible part of what a product is, brand is a holistic term that contains

experiences, perceptions, image, and personality. So, every brand is a product but every product is not a brand.

Let us see how?Consumers buy.People live.Products fulfill needs.Experiences fulfill desires.Identity is recognition.Personality is about character and charisma.Service is selling.Relationship is acknowledgementIn short, a brand is a symbol, name, graphic identity and logo type that allow the effective identification of one

company, product or service from its competitors and is able to create an emotional response in the minds and hearts ofits customer base.

A brand is the product’s identity, is built around a perception of a product and it represents the first keydifferentiator of a product in a crowded and highly competitive market.

The simple, easy and attractive way to differentiate a product and brand is: A product is physical A brand is emotional.

Questions1. Differentiate between product and brand giving suitable examples.2. What do you mean by the term “VDG”, “RDG” and “PDA”?3. “Products can become obsolete but brands can be timeless.” Elaborate.4. “Products can be copied and replaced but brands are unique.” Justify the statement.