Branding

Putting a FACE to the MYTH

What is a brand?

A name, a term

A symbol, a sign

“A name, term, sign, symbol or any other feature that identifies one seller’s product or service as distinct from those of other sellers” -The American Marketing Association

What is Branding?

• Started as a HOT STAMP applied on the skins of Cattle to identify and differentiate them.

• Now Branding is applied to virtually everything around us from SOAP to COUNTRIES.

THE EVOLUTION OF BRANDING

Phase IManufacturing Era

• First signs of Branding as we know it started during the Industrial Revolution (mass production).

• To :– Identify Manufacturer– Convey quality– Differentiate from unbranded– Justify premium price over unbranded

PHYSICAL ATTRIBUTES

Phase IISales Era

• During the great Recession 1930, rose the need for salesmanship to push the merchandise to the end consumer.

• Initial signs of Advertising

FUNCTIONAL ATTRIBUTES

Phase IIIMarketing Era

• After world war II purchasing power was up and so was the production capacities so rose the need for Marketing.

• TV began in the 50’s so did Advertising.• New dimensions that defined

the Brand became more evident.

EMOTIONAL ATTRIBUTES

Phase IVThe PR Era

• With increasing competition and consumer sophistication came the need for further differentiation.

• Brands / Companies started to differentiate based on Morals and Values.

• This is an advanced stage still being explored in our

region

VALUES

SO, WHAT IS A BRAND??

A Brand is …….

• A proposition with certain:– Physical attributes (looks)– Functional attributes (works)– Emotional attributes (personality)– Values

All above relative to a specific consumer group.

And for a certain– Price Bracket (social class)

BRAND Components

PhysicalAttribute

s

Emotional

Attributes

FunctionalAttributes Values

BRAND

A Real Brand should have

– A name– A gender– An Age– Specific Physical features– Well defined looks– A social group– Values– Personality

Real Brand = A person

Lets try to prove it

• If A PERSON called BMW walked in at this moment, lets imagine who this person would be:– Gender– Age– Wears what? (Casual, Suit, Signe, local brand etc)– Looks (Tall / Thin, Handsome, elegant,

foreign etc)– Social class (Upper, Middle, Lower)– Personality (Fun, Cool, conservative, boring

etc)

Lets Prove it Again• Lets do the same exercise for Mercedes

Benz and Toyota– Gender– Age– Wears what? (Suit, Casual, Signe, Local Brands

etc)– Looks (Tall / Thin, Handsome, elegant, foreign

etc)– Social class (Upper, Middle, Lower)– Personality (Fun, Cool, conservative, boring

etc)

More Proof …..• This is unbranded Tea (put some loose Tea in front

of your audience) . Try to do the exercise for that..• What if we put a face to this Tea? Can you

imagine a person?• How about another face? Can you imagine a

different person?

SO ..A Brand is…

What is the Significance of this?

• People relate to Brands like relating to Friends.– If I see myself as cool I want to hang out with cool

people.– If I see myself young I want to be with young lively

people.– If I need someone I can trust I will turn to a

trustworthy friend.– If I want to have a good time I ll call up the FUN

guy.– If I want to be distinguished I ll hang out with

distinguished guys.

What is the significance of this?

• Your Friends have specific attributes.• These attributes may DEVELOP with time.• If they develop positively (relative to your

expectations), your friendship may grow stronger.• If the opposite, then your friendship may fade.• If your needs or beliefs change, this relationship

may also be affected• IF they change completely then certainly they are

not your Friends anymore, they are STRANGERS.

Branding = Relative consistency

What is the significance of this?

• Branding leads to UNIQUNESS / DIFFERENTIATION.

Harley Davidson = FreedomVOLVO = SAFETYSONY = EntertainmentRolls Royce = Extreme Luxury

Branding = Value

Branding = Value

BRAND EVOLUTION

Evolution Stages of Brand

• 6 stages of Brand evolution:– Unbranded Goods– Brand as Reference– Brand as Personality– Brand as Icon– Brand as Company– Brand as Policy

Classical Marketing

Post Modern Marketing

Unbranded Goods

• Characteristic of developing countries.

• Demand exceeds supply.• Main edge is Price, Supply and

product performance.• Price sensitive.

Brand as Refference

• Main promise is functional benefit.• Provides a source for the Product.• Guarantee of a specific quality.• Provides window of higher price than

Unbranded.• Price can be determined by the

importance of the functional benefit and its uniqueness vs competitors.

Brand as Personality

• Focus on Emotional values taking the functionality for granted.

• Presents Target consumer Values / lifestyle.

• Often uses celebrities to portray Brand image.

• More Self Realization• Permits higher pricing than previous

stage.

Brand as Icon

• Even more focus on emotional attributes with equivalent functional attributes.

• Brand becomes synonymous to A VALUE.

• Self expression.• Doorway to group acceptance.• Permits higher pricing than previous

stage.

Brand as Company

• The relationship between Consumer and Brand / Company is open.

• The Brand / Company interacts directly with Consumers.

• Every aspect of the Brand is mirrored in every consumer touch point.

• The consumer takes part in the development of the Brand.

Brand as Policy

• Brand become identified with Social, Political or ethical issues / causes.

• Consumers with same beliefs become strongly attached to these Brands.

• Result in strong Loyalty.• Credibility is a Make it or Break it

factor.

Maslow's Hierarchy

Unbranded

Brand asPolicy

Brand vs StageStage Brand Brand Brand Brand Brand

Policy Timberland, The Body Shop

Company Harley Davidson

Icon Rolex

Personality Camay

Reference Pril

Unbranded

THATS HOW VALUABLE

Coca Cola - 67M $

Microsoft – 57 M $

IBM – 56.2 M $

GE – 49 M $

INTEL – 32.3 M $

NOKIA – 30 M $

TOYOTA – 28 M $

Disney – 27.8 m $

McDonalds – 27.5 m $

Mercedes Benz – 21.8 M $