What is a brand ?

A traditional scenario of market

Company AConsumer

Product / services

In a traditional market scenario, the company is catering to the consumer.The number of competitors are small.In these markets the companies can come with advanced technologies and other strategies to capture more market share.(The size and power of the players is important.)

Company B

Company C

What is a brand ?

Company A

ConsumerProduct / services

In complex markets, the differences between companies are not much.The companies can not differentiate much themselves from others on the basis of quality and technology etc. factors as all the companies are competent enough.This scenario explains the need for the differentiation for the companies.

Company B

Company C

What is a brand ?

Branding is an effort to give a unique identity to the company’s products and create emotional associations with consumers.It is a form of marketing.

A brand is a set of associations that are linked to a product range, a division, or company. These associations reside in the memory of customers.These associations help customers understand

what the brand or company is, why it is potentially relevant to them,how it is different or similar to other products made by the company,and how it is similar or different from competitor’s

products.

What is a brand ?

Branding is a combined effort of the company which is projected to the consumer.

Company

Brand

Consumer

Marketing

Design

What is a brand ?

What a brand means to common person ?

In 'blind' taste tests, people prefer the taste of Pepsi over the taste of Coke. However, if the test is not 'blind' and the tasters know which beverage is which, they might prefer the taste of Coke over Pepsi! That is the emotional power of a brand. The Coca-Cola brand has the power to actually change an individual's taste!

Coca-cola is the no.1 brand in the world.The first shape that was registered is the coca cola bottle.

CompanyProduct A

Product B

Product PackagingWebsites

Advertisements

A brand is a promise. A promise to achieve certain results, deliver a certain experience, or act in a certain way. A promise that is conveyed by everything people see, hear, touch, taste or smell about your business.

logo

Integrity of Brand

Company

Design

Brand

Marketing

Manufacturing And organizing

Customer

Perspectives to view brand Perspectives to view brand equity:equity:

There are at least three perspectives from which to There are at least three perspectives from which to view brand equity:view brand equity:

FinancialFinancial - One way to measure brand equity is to - One way to measure brand equity is to determine the price premium that a brand determine the price premium that a brand commands over a generic product. For example, if commands over a generic product. For example, if consumers are willing to pay $100 more for a consumers are willing to pay $100 more for a branded television over the same unbranded branded television over the same unbranded television, this premium provides important television, this premium provides important information about the value of the brand. information about the value of the brand. However, expenses such as promotional costs However, expenses such as promotional costs must be taken into account when using this must be taken into account when using this method to measure brand equity.method to measure brand equity.

Perspectives to view brand Perspectives to view brand equityequity

Brand extensionsBrand extensions - A successful brand can be used as a - A successful brand can be used as a platform to launch related products. The benefits of brand platform to launch related products. The benefits of brand extensions are the leveraging of existing brand awareness extensions are the leveraging of existing brand awareness thus reducing advertising expenditures, and a lower risk thus reducing advertising expenditures, and a lower risk from the perspective of the consumer. Furthermore, from the perspective of the consumer. Furthermore, appropriate brand extensions can enhance the core brand. appropriate brand extensions can enhance the core brand. However, the value of brand extensions is more difficult to However, the value of brand extensions is more difficult to quantify than are direct financial measures of brand equity.quantify than are direct financial measures of brand equity.

Consumer-basedConsumer-based - A strong brand increases the - A strong brand increases the consumer's attitude strength toward the product associated consumer's attitude strength toward the product associated with the brand. Attitude strength is built by experience with with the brand. Attitude strength is built by experience with a product. This importance of actual experience by the a product. This importance of actual experience by the customer implies that trial samples are more effective than customer implies that trial samples are more effective than advertising in the early stages of building a strong brand. advertising in the early stages of building a strong brand. The consumer's awareness and associations lead to The consumer's awareness and associations lead to perceived quality, inferred attributes, and eventually, brand perceived quality, inferred attributes, and eventually, brand loyalty.loyalty.

Benefits of Strong Benefits of Strong Brand EquityBrand Equity

Facilitates a Facilitates a more predictable incomemore predictable income stream. stream. Increases cash flowIncreases cash flow by increasing market share, by increasing market share,

reducing promotional costs, and allowing premium reducing promotional costs, and allowing premium pricing. pricing.

Brand equity is an assetBrand equity is an asset that can be sold or leased. that can be sold or leased. However, brand equity is not always positive in value. However, brand equity is not always positive in value.

Some brands acquire a bad reputation that results in Some brands acquire a bad reputation that results in negative brand equity. Negative brand equity can be negative brand equity. Negative brand equity can be measured by surveys in which consumers indicate that a measured by surveys in which consumers indicate that a discount is needed to purchase the brand over a generic discount is needed to purchase the brand over a generic brand/product.brand/product.

Some Parameters of Measuring Some Parameters of Measuring Brand EquityBrand Equity

Market (10%)-The brand’s trading environment in terms Market (10%)-The brand’s trading environment in terms of growth prospects, volatility, and barriers to entry. of growth prospects, volatility, and barriers to entry. Brands in markets such as foods, drinks, and publishing Brands in markets such as foods, drinks, and publishing are intrinsically more valuable than brands in, for are intrinsically more valuable than brands in, for example, high-tech or clothing areas, as the latter example, high-tech or clothing areas, as the latter markets are more vulnerable to technological or fashion markets are more vulnerable to technological or fashion changes.changes.

Geographic Spread (25%)-The ability of the brand to Geographic Spread (25%)-The ability of the brand to cross geographic and cultural borders. Brands that are cross geographic and cultural borders. Brands that are international are inherently more valuable than national international are inherently more valuable than national or regional brands.or regional brands.

Measuring Brand EquityMeasuring Brand Equity

Trend (10%)-The ongoing direction and ability of the Trend (10%)-The ongoing direction and ability of the brand to remain contemporary and relevant to brand to remain contemporary and relevant to consumers.consumers.

Support (10%)-The amount and consistency of marketing Support (10%)-The amount and consistency of marketing and communication activity. Those brands that have and communication activity. Those brands that have received consistent investment and focused support must received consistent investment and focused support must be regarded as more valuable than those that have not. be regarded as more valuable than those that have not. While the amount spent in supporting a brand is While the amount spent in supporting a brand is important, the quality of this support is equally important, the quality of this support is equally significant.significant.

Protection ( 5%)-The brand owner’s legal titles. A Protection ( 5%)-The brand owner’s legal titles. A registered trademark is a statutory monopoly in a name, registered trademark is a statutory monopoly in a name, device, or in a combination of these two. The strength device, or in a combination of these two. The strength and breadth of the brand’s protection is critical in and breadth of the brand’s protection is critical in assessing its worth.assessing its worth.

Building and Managing Brand EquityBuilding and Managing Brand Equity

In his 1989 paper, In his 1989 paper, Managing Brand EquityManaging Brand Equity,, Peter H. Farquhar Peter H. Farquhar outlined the following three stages that are required in order outlined the following three stages that are required in order to build a strong brand:to build a strong brand:

1.1. IntroductionIntroduction - introduce a quality product with the strategy - introduce a quality product with the strategy of using the brand as a platform from which to launch future of using the brand as a platform from which to launch future products. A positive evaluation by the consumer is important.products. A positive evaluation by the consumer is important.

2.2. ElaborationElaboration - make the brand easy to remember and develop - make the brand easy to remember and develop repeat usage. There should be accessible brand attitude, that repeat usage. There should be accessible brand attitude, that is, the consumer should easily remember his or her positive is, the consumer should easily remember his or her positive evaluation of the brand.evaluation of the brand.

3.3. FortificationFortification - the brand should carry a consistent image - the brand should carry a consistent image over time to reinforce its place in the consumer's mind and over time to reinforce its place in the consumer's mind and develop a special relationship with the consumer. Brand develop a special relationship with the consumer. Brand extensions can further fortify the brand, but only with related extensions can further fortify the brand, but only with related products having a perceived fit in the mind of the consumer.products having a perceived fit in the mind of the consumer.