MANAGING THE

BRAND

WHAT IS A BRAND?What is the difference between a product and Brand?

Carbonated Water, Phosphoric Acid, Natural Flavors, Caramel Color…

Brand Product

BRAND VS PRODUCTProductProduct – something the customer uses until something better comes along

Good at treating pain because effective

More potent and effective therefore better at treating

pain

BrandBrand – something the customer has a relationship with, and uses because they want to

- Emotional connection between the brand and the customer

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12 C1

Ibuprofen Diclofeac

WHAT IS A BRAND?

Tangible productTangible product

Basic brand

Name, Design, Quality, Features

Brand

Relationship with customers

• A brand is a sum of all the characteristics, tangible and intangible, that makes your product differentiated or unique in the minds of the customer

• The key difference between a brand and a product:

How the brand adds value to customers on more that just a functional level

WHY ARE BRANDS IMPORTANT?

• Can provide and emotional reason for preference beyond the functional

•Important if:

- The product has direct intangible effect

- Little or no functional competitive advantage for product

- Numerous competitor products

- More competitors coming onto the scene

• Therefore we have more chances of being successful, if we can give customers reason to prescribe based on more than just functional aspects of the product

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Versus

BULDING BRANDS

Why do we choose a brand?

Combination of functional and emotional benefit that gives use value

Distilled into : The Brand Value equation

BRAND VALUE EQUATION

Perceived value for money

+

Functional benefit

+

Emotional benefit

= Brand ValueBrand Value

BRAND VALUE EQUATION

VfMVfM

FunctionalFunctional

EmotionalEmotional

Cost Justification

Reason to Re-use

Reason to use

BRAND VALUE EQUATION

VfM

Emotional

Functional

VfMFunctional

Emotional

In different situations Brand value equation should be different

Significant product differential and situation where Significant product differential and situation where customers really make functional-based decisionscustomers really make functional-based decisions

Limited Product differential and situation where Limited Product differential and situation where customer really make balanced decisionscustomer really make balanced decisions

Understanding the relative importance of the Understanding the relative importance of the elements of the BVE is keyelements of the BVE is key

FRAMEWORK FOR DERIVING BRAND POSITIONING

Product Positioning

The Unique Selling Proposition

FunctionalBenefit

Emotional Benefit

Perceived Value For Money Benefit

Brand Value Equation

Brand Positioning

Key Promotional Messages