Module: Understanding Brand

Anatomy

Module : Understanding Brand

Anatomy • Concept of category and product

• Concept of Brand & Evolution of Brand

• Understanding Strong Brand & Brand

Equity

• Building Strong Brands:Brand Identity

,Brand Positioning & Image,

Brand Manager: The Idea • 13 May, 1931,Neil McElroy wrote a memo to his

boss, RF Rogan

• His memo lasts for three pages, not one.

• In it (displaying the sexism of his times), he lays

out the case for 'Brand Man’

• His memo features a prescient phrase: Brand

Man should take 'a very heavy share of individual

brand responsibility’

• Soon, brand managers commanded a pivotal role

within companies such as McElroy's, Procter &

Gamble, as they restructured around their brands

and 'brand management'.

October 30, 1904 -

November 30, 1972

Role of Brand Manager: Evolution • According to a recent McKinsey* survey('A New World for Brand Managers‘,

McKinsey Quarterly (April 2010),

• Globalization, retailer power, the growing importance of customer

experience, social media have 'stripped away' brand managers' authority,

denying them the perspective and autonomy they once had.

• Globalization has also done its bit to erode the powers of the local brand

chief executive.

• Rise of retail power has introduced the concept like Category Manager. (For

example, Kraft's European operations are organized around a category model,

with P&L responsibility held not by brand managers but 'category presidents'

based in Zurich.)

• The rising importance of customer experience - a more holistic view of the brand

that takes it beyond the product and its communication to every possible

touch-point has contributed to the dispersal of the brand manager's authority.

• Because of explosion of social media, managing the brand involves both

internal communication and external engagement .

• Underneath it all, however, the brand manager's job remains remarkably

similar to that outlined by McElroy in 1931, It's still about building brand

equity.

A Brand Manager’s Potential Interactions

Sales

Designers

Researchers

Premium

suppliers

Premium

screening Store

testing Sampling

Couponing

Media

Advertising

agency

Packaging

Promotion

services

Purchasing

Publicity

Legal

Fiscal

Market

research

Manufactur-

ing and

distribution

Research

and

development

Brand

manager

Suppliers

Trade

Suppliers

Trade Research

suppliers

Suppliers

Agency media department

Company media department

Media sales reps

Product/Brand -Focused Structure Head of

company/division

Corporate

communications Finance Marketing Manufacturing

Manager of

product/Brand A

Manager of

product/Brand C

Manager of

product/Brand B

Marketing

Research Support

Product/Brand

management

Defining the Competitive Set

Bases of Competition I. Customer-oriented

Who they are – competition for same budget

When they use it

Why they use it- benefits sought

II. Marketing-oriented: advertising and promotion

Theme/copy strategy

Media

Distribution

Price

Bases of Competition cont.

III. Resource-oriented Raw materials

Employees

Financial resources

IV. Geographic

Levels of Competition

Diet

lemon

limes

Fruit

flavored

colas

Coffee

Diet

Coke

Diet

Pepsi

Bottled

water

Lemon

limes

Regular

colas

Beers

Juices

Wine

Fast food

Tea

Video

rentals

Ice

cream

Product form

competition:

Diet colas

Product

category

competition:

Soft drinks

Generic

competition:

Beverages Budget

competition:

Food and

entertainment

Levels of Competition: Implications for Product Strategy

Budget

Generic

Product

Category

Product

Form

Competitive Level

Convince Customers that the

Brand is Better than Others

Convince Customers that the

Product Form is Best in the

Category

Convince Customers that the

Product Category is the Best

Way to Satisfy Needs

Convince Customers that the

Generic Benefits are the Most

Appropriate Way to Spend

their Money

Product Management Task

Category Attractiveness Analysis

Aggregate Category Factors

• Category size

• Category growth

• Sales cyclicity

• Seasonality

• Profits

• Stage in product life cycle

Category Attractiveness over the Product Life Cycle

Stage of product life cycle

Category size

Category growth

Category attractiveness

Introduction

Small

Low

Low

Growth

Moderate

High

High

Maturity

Large

Low

Low/high

Decline

Moderate

Negative

Low

Sales

Time

Customer Analysis: What We Need to Know about Current and Potential Customers

• Who buys and uses the product

• What customers buy and how they use it

• Where customers buy

• When customers buy

• How customers choose

• Why they prefer a product

• How they respond to marketing programs

• Will they buy it (again)?

Basic Customer Strategies

1. Customer acquisition

2. Customer retention

3. Customer expansion

4. Customer deletion

From Product to Brand

Best Global Brands 2011

Summary of INTERBRAND top 100 Global Brands 2014

Country of ORIGIN No. of Brands

US 54

Finland 1

Japan 7

Germany 10

France 6

South Korea 3

Sweden 2

UK 5

Switzerland 2

Netherlands 3

Canada 1

Italy 2

Spain 2

Mexico 1

China 1

..\IBM_EPGDIM\Interbrand-Best-Global-Brands-2014-Report.pdf

..\IBM_EPGDIM\Interbrand-Best-Indian-Brands-2014 (1).pdf

Best Brands – Interbrand

What is a BRAND?

What is a brand?

A brand is a name, term, sign, symbol, or design,

or a combination of them,

intended to identity the goods or services

of one seller or group of sellers

and to differentiate them from those of competitors

- American Marketing Association

Anything more?

“A product is an object or service that’s available.

A brand is a complex set of satisfactions delivered.”

Jeremy Bullmore, WPP

“Branding is a natural, instinctive human creation. A

way of making a complicated world simpler. With a

brand, you get a symbol, a cue - you know what you’re

getting, you know what to expect.”

Niall Fitzgerald, Unilever

How others define a brand

In a nutshell…

“Keeping ahead with rational product advantages is

unsustainable in highly competitive markets. It is the

emotional value of brands that are enduringly

attractive to consumers.”

K. Ohmae, McKinsey & Co.

Or put another way

Personality

User imagery

Symbols

Brand/customer

relationships

Emotional benefits

Self-expressive

benefits

Corporate

associations

Country of origin

and history

Functional benefits

Attributes

Uses

Quality

Value

Brand/flesh

Product/stone

BRAND CONCEPT

“If this business were to be split up, I would be glad to take the

brands, trademarks and goodwill and you could have all the bricks

and motor-and I would fare better than you”

John Stuart, Former Chairman of Quaker Oats Ltd

Brand: The beginning

• Searing of flesh with a hot iron to produce

a scar or mark with an easily recognizable

pattern for identification purpose

• Livestock were branded by the Egyptians

as early as 2000BCE.

• The practice was brought to North

America in the sixteenth century by the

Spanish conqueror Hernan Cortes (1485-

1547)

Brand: The evolution

• 1882: Harley Procter named his generically named

‘white soap’ as ‘Ivory Soap’: an idea that apparently

came to him while reading a psalm in church

• In December of that year, ‘Ivory’ got a slogan ‘’99

and 44/100% pure’

• 1888, in Janesville, Wisconsin, George Safford

Parker named each pen produced by his company

a ‘Parker Pen’

• In Europe, food industry provided the first brand

names such as Nestle, Cadbury, Kellogg

Brands can reduce risk in product decisions. There are many different types of risks that consumers may perceive in buying and consuming a product:

1. Functional Risk

2. Physical Risk

3. Financial Risk

4. Social Risk

5. Psychological Risk

6. Time Risk

SO,

For Consumers

• Functional: – Identification of

Product Source

– Reduces search costs

• Experiential: – Risk reducer

– Signal of Quality

• Symbolic: – ‘fit’ with self image

– Representing a ‘group’

For Manufacturers

• Identification to simplify

handling or tracing

• Legal Protection

• Signal of Quality Level

• Competitive Advantage

• Financial Returns

Contracting with a Brand

• A Brand is a contract, carved in stone

and long (ever ?) lasting contrat

with the final consumer

with her own environment

• This is a two ways contract (return

contract ?)

Historical / Memory Future / Project

Brand Identity Plan

What is Brand Identity? •Brand Identity is the unique set of brand

associations that the brand strategist aspires

to create or maintain.

•These associations represent what the

brand stands for and imply a promise to

customers for the organization members.

•Identity includes moral image, aim and

values that together constitute the essence

of individuality while differentiating the brand

(de Chernatony, 2002).

Brand Identity (Kapferer’s Prism)

Brand Identity

Characteristics of Physical Representation:

• objective characteristics of the brand

• quick and easy visual recognition thanks to star products

Characteristics of Personality:

• this is the brand’s main intrinsic parameter, «what kind of person» it is

• no personality = weakness

Human Personality Factors: Big ‘FIVE’ Model ( McCrae, 1993)

Brand Personality:

Aaker(1997) factor analyze the individual ratings of 40 brands on 114 personality traits by 631

respondents recruited in the US

Brand personality

BRAND_VIDEO CLIPS\The Cheetah-inspired XUV500 - Announcer TV Ad - YouTube.flv

Brand Personality Scale

(BPS)

Traits Brand

Sincerity Domestic, honest,

genuine, cheerful

Campbell’s,

Hallmark, Kodak

Excitement Daring, spirited,

imaginative, up-to-

date

Porsche, Absolut,

Benetton

Competence Reliable, responsible,

dependable, efficient

Amex, CNN, IBM

Sophistication Glamorous,

pretentious, charming,

romantic

Lexus, Mercedes,

Revlon

Ruggedness Tough, strong,

outdoorsy, rugged

Levi’s, Malboro,

Nike

Creation of Brand Personality: A

Roadmap for the Marketer

Celebrity Endorsement

Category Specific

Migrants

Category Neutral Celebrity independent of

product category

Transiting from product category

specific to category neutral

Celebrity restricted to a few

product categories

Selection of CELEBRATIES :Trait to

explain CELEBRATIES

Dimensions Haritik

Roshan

John

Abraham

Mahindra.S.D

honi

Aamir Khan Ranbir

Kapoor

Shahrukh

Khan

5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1 5 4 3 2 1

Attractiveness

(Attractiveness,

Classy,

Elegant)

Trustworthiness

(Dependable,

Reliable,

Sincere)

Expertise

(Experienced,

Knowledgeable,

Skilled)

Fanta Brand Personality

Fun

Mischievous

Bubbly

Celeb Personality

Young

Bubbly

Fresh

Energetic

Vibrant color, tempting taste and tingling bubbles; uplifts feelings, helps free spirit, indulge in

the moment.

A Corporate Character Scale to Assess Employee and Customer Views of Organiza...

Gary Davies; Rosa Chun; Rui Vinhas da Silva; Stuart Roper

Corporate Reputation Review; Summer 2004; BRAND_VIDEO CLIPS\Mahindra Rise- Mahindra Rise Film 2011 - YouTube.flv

Brand Identity Characteristics of Culture: • a brand is a systemic values task force full of cultural

power and heritage

• a product’s legitimacy is embodied in the name of the brand and the culture it represents

• (i.e. consumers behave a certain way thanks to the brand; the brand has created/encouraged a new form of behaviour/ «culture»)

Characteristics of Self-image: • brand as an internal mirror of its consumer i.e what

the consumer think of himself.

Brand Identity

Characteristics of Reflection:

• value that is bought by the consumer

• this targets the consumers’ external image

• Identification Model: shows consumers what

they desire to be or own

Characteristics of Relationship:

• our consumption sustains a certain type of relationship with the organisation?

SOURCE: BRAND REPORTER

Brand Identity

Sources of Identity:

• Products

• Name

• Corporate graphics, symbolic logos

• Personage

• Geographical and historical roots

• Publicity and advertising

• ..\IBM_EPGDIM\BRAND_VIDEO CLIPS\Creating a Corporate Identity- Virgin`s Branding Strategy - YouTube.flv

David Aaker’s Brand Identity Planning Model

..\IBM_EPGDIM\BRAND_VIDEO CLIPS\P&G Brand Identity 2010 - YouTube.flv

Creating Identity for a Commodity

• ..\IBM_EPGDIM\BRAND_VIDEO CLIPS\Branding a commodity- Renova Black Toilet Paper- -

introductory video - YouTube.flv

• ..\IBM_EPGDIM\BRAND_VIDEO CLIPS\510-077-1.pdf

Case of CENTURYPLY

..\IBM_EPGDIM\BRAND_VIDEO CLIPS\AARAKSHAN

CENTURYPLY - YouTube.flv

..\IBM_EPGDIM\BRAND_VIDEO CLIPS\In Film of

Century Ply in Aarakshan EMC Solutions Worldwide

Pvt Ltd - YouTube.flv

BRAND_VIDEO

CLIPS\CENTURYPLY_CASE_8B12A042w (1).pdf

Case of CENTURYPLY

• Are CPIL’s branding initiatives strategically matched with the

branding practices of the plywood industry?

• Is there harmony between the brand identity created by CPIL and its

existing brand image in the market?

• Are CPIL’s branding initiatives rightfully integrated with other

marketing mixes of the company?

• Is the branding model sustainable enough considering the financial

condition of the company?

• Should CPIL now focus on the creation of a separate brand identity

for plywood, laminates and veneers in place of the current

Centuryply corporate branding as a whole? What are the possible

ways?

BRAND POSITIONING

Brand Positioning

Brand Knowledge Structures Brand Equity To Create

Brand Positioning

To

Determine

Brand Positioning and its Relation with Brand Equity

*Brand Knowledge structures are based on Brand Image and Brand Awareness

Positioning Guidelines

• Get the key consumer Insight: Find the GAP

to occupy

• Main unique proposition/promise that the

brand is going to offer/fulfill

• Make it specific, short and tangible

• Keep the positioning up-to-date

Brand Positioning

• Define competitive frame of reference

– Target market

– Nature of competition

• Define desired brand knowledge structures

– Points-of-parity

– Points-of-difference

POP & POD

• Points-of-Parity-Shared brand

values

–Necessary

–Competitive

Identifying & Choosing POD

• Desirable ( Customer Perspectives)

– Personality Relevant

– Distinctive & Superior

– Believable & Credible

• Deliverable ( Firm Perspectives)

– Feasible

– Profitable

– Pre-emptive, defensive & Difficult to attack

• Differentiating ( Competitive Perspectives)

– Unique

Positioning in B2B Market • Product differentiation

– Feature, Conformance, Performance, Durability,

Reliability, Style, Design ad clip\Ozone Safe.jpg

• Service differentiation

– Delivery, Installation, Customer Training, Consulting

services, Repair, Replacement ..\IBM_EPGDIM\BRAND_VIDEO CLIPS\HCL.jpg

• Personnel differentiation

– Empathy, Competency, Credibility, Reliability,

Responsiveness, Communication ..\IBM_EPGDIM\BRAND_VIDEO CLIPS\FEDEX.jpg

• Image differentiation

– Symbol, People, Events, Media, Community ..\IBM_EPGDIM\BRAND_VIDEO CLIPS\dell.jpg

BRAND IMAGE: the way of thinking by a consumer about the brand

(MENTAL CONSTRUCTS) and the feelings the brand arouses when

the consumer thinks about it

Components of Brand Image:

• Life style

• Expectation

• Experience

• Disposition

• Differentiation

Brainstorming: Brand Image

TIMES OF INDIA vs. HINDUSTAN TIMES

Indigo vs. Spicejet

GAP IDENTIFICATION: BRAND

IDENTITY-BRAND IMAGE

GAP IDENTIFICATION: BRAND

IDENTITY-BRAND IMAGE • Identity: Image: S:E: JACKPOT

• Identity: Image: S:P: BLIND HORSE

• Identity: Image: W:E: DARK HORSE

• Identity: Image: W:P: LAME HORSE

MANAGING GAP: BRAND

IDENTITY-BRAND IMAGE • Identity: Image: S:E: PORTFOLIO

EXPANSION

• Identity: Image: S:P: CREDIBILITY

BUILDING

• Identity: Image: W:E: RELATIONSHIP

BUILDING

• Identity: Image: W:P: ALTERATION

Your Brand’s Genetic Code: BRAND DNA

•Every great brand has substance. a brand’s DNA is timeless. a brand’s blue print is a unique set of values that originally defined them. Great brands can remain relevant through creativity. •A brand’s DNA is not strictly about the product, service, the past or even about research -- its about tapping in to an essence or story that defines who you are to the people that matter most, your core customers.

•What Do You Stand For? BRAND_VIDEO CLIPS\Hostage_WMP.wmv

•..\IBM_EPGDIM\BRAND_VIDEO CLIPS\Audi Brand Film_vcd0.mpg

DNA consists of:

• Mission: What change does the brand want to bring in

people lives? what would the users be missing if the

brand did not exit?

• Standpoint: From where does the brand speak? History

and the parent values

• Values: What are the brand's core values? What is the

main philosophy?

• Territory: Where is the brand legitimate in achieving its

mission? In what categories?

• Style and Language: What elements of style and

language are typical for the brand? • ..\IBM_EPGDIM\BRAND_VIDEO CLIPS\ford brand DNA.pdf

THANK YOU