FOBM - 1 (Introduction, Session 1)
FOBM - 1 (Introduction, Session 1)
Branding
Identify the companies
Concept of Branding
• “A name, logo, or symbol that evokes in customers a perception of
added value for which they will pay a premium price.”
• John Torella
• “A product with a personality.”
• Chris Staples
What is a brand?
• Branding is a combined effort of the company which is projected to
the consumer
• Marketing
Brand Consumer
• Company
• Design
What is a brand? (Contd….)
• Products and services have become so alike that they fail to distinguish themselves by
their quality, efficacy, reliability, assurance and care. Brands add emotion and trust to
these products and services, thus providing clues that simplify consumers’ choice.
• These added emotions and trust help create a relationship between brands and
consumers, which ensures consumers’ loyalty to the brands.
• Brands create aspirational lifestyles based on these consumer relationships. Associating
oneself with a brand transfers these lifestyles onto consumers.
• The branded lifestyles extol values over and above the brands’ product or service
category that allow the brands to be extended into other product and service categories.
Thus saving companies the trouble and costs of developing new brands, while entering
new lucrative markets.
• The combination of emotions, relationships, lifestyles and values allows brand owners to
charge a price premium for their products and services, which otherwise are barely
distinguishable from generics.
Role of Brand
• Identify the maker
• Simplify product handling
• Organize accounting
• Signify quality
• Create barriers to entry
• Serve as a competitive advantage
• Secure price premium
Role of Brands (Contd)
• A brand is a product or service which help the organisation
differentiate their products or services from others.
• The role of brand come in critical for the organisation as it translates
into loyalty and higher margins in the long run.
Role of Brand (Contd)
• Related to Product Performance : e.g. Gillette, Merck, Sony, 3M
• Functional
• Rational
• Tangible
• Related to Brand Identity: e.g. Coca-Cola, Calvin Klein, Gucci, Tommy
Hilfiger, Marlboro
• Symbolic
• Emotional
• Intangible
Types of Branding
• Corporate branding : Making the promise of quality products, service,
and delivery to customers. The intent is to attract new customers and
create loyalty in past customers. Corporate branding is nothing new;
it’s been around as long as competition between businesses has
existed.
• Employer branding : Focusing on employees to understand the vision,
mission, goals, products, and services of the company. It is designed
to educate employees in order for them to uphold the corporate
brand to their customers.
Employer Branding
Corporate Branding
Types of Branding
• Cause Branding : Attempting to attract customers by associating the
company with a cause or purpose that potential customers would
find beneficial to their personal goals or in line with their values. This
might be a percentage contribution of company sales to charitable
organizations or donations to nature and wildlife preservation
councils.
• Co-Branding : Becoming more familiar to the consumer all the time.
These include, for example, mini-marts attached to gas stations,
banking facilities within grocery stores, and Laundromats attached to
anything from bowling alleys to family entertainment centers. This
branding falls in the “one-stop shopping” category.
Cause Branding Co-Branding
Types of Branding
• Spirit Branding: It’s that “get a good feeling” from using our product
approach. The world looks brighter and things just go better when
you start organisations's morning off with our product.
• Community Branding – It’s a promise to the people in the community
that this company will be a beneficial partner to them.
• Culture branding : Culture branding is making promises to employees
concerning their working environment and relationship to their
leaders and managers.
Community branding
Spirit Branding
Culture branding
Process of Branding
1. Clearly define the target audience
2. Understand the target customer
3. Understand the competition
4. Design compelling brand intent
5. Identify key leverage points in customer experience
6. Execute the branding strategy
7. Establish feedback system.
Challenges in Branding
• Brand decision : To brand or not to brand ?
• Brand sponsor decision
• Brand quality decision
• Brand name decision
• Brand extension decision
• Multi Brand decision
• Brand repositioning decision
• Branding strategies
Benefits of Brand for the firm
• Wide market: A manufacturer gets national market due to branding
as consumers support branded products extensively.
• Effective publicity: Branding and advertising go together. Branded
goods can be advertised effectively. This bring popularity to products
and raises sales.
• Support from traders in marketing: Traders are interested in selling
branded goods due to various advantages like regular demand and
quick sale.
• Control on marketing: A manufacturer can maintain effective control
on the marketing of branded goods.
Benefits of Brand for the firm
• For a firm, the brand provides legal protection towards unique features or
aspects of the product.
• Brand loyalty helps organization to retain their existing customers when
diversifying from one line of products to other. It provides security of
demand and creates barrier for other manufactures to easily tap existing
customers.
• Firms can charge a premium for owning a brand boosting profit on every
sale.
• Product can be copied, but brand cannot. Once a brand is established, it’s
the invaluable asset for an organization.
• A well established brand adds towards the overall value of the firm while
calculating its net worth.
Benefits of Brand for the consumer
• It helps to identify the source of manufacturer of the product and
simultaneously assigns a responsibility towards an organization for
the branded product.
• Experience of customers with products of same brand help them to
quickly decide whether they will want to go with their purchase
decision or not making their decision easier.
• Brands bring with them a certain level of quality assurance.
The concept of branding can be applied to:
• Physical Goods – e.g. Parle-G biscuits, Tata Tea, Maruti SX4 etc-
• Services – e.g. Indigo Airlines, ICICI Bank etc-
• Stores – e.g. Future Retail, Central, 99 Store, Amazon etc-
• Person – e.g. Sachin Tendulkar, Amitabh Bacchhan etc-
• Place – e.g. Gujrat Tourism, Incredible India etc-
• Organization – e.g. The Rolling Stones
• Idea – e.g abortion rights, free trade, or freedom of speech
To successfully brand a product it is necessary
to teach consumers
• Who the product is.
• What the product does.
• Why consumers should choose that particular brand.
Brands Vs Products
• A product is anything which can be offered to the
market for attention, acquisition, use or
consumption that might satisfy a need or a want.
• Products are defined at 5 levels
• Core benefit: fundamental need or want that
consumers satisfy by consuming the product or service
• Generic product level: A version of the product
containing only those attributes or characteristics
absolutely necessary for it to function.
• Expected product level: The set of attributes or
characteristics that buyers normally expect and agree
to when they purchase a product.
• Augmented product level: The inclusion of additional
features, benefits, attributes or related services that
serve to differentiate the product from its competitors.
• Potential product level: This includes all the
augmentations and transformations a product might
undergo in the future.
Difference Between Brand & Product
• The product is an item or service produced and offered by the company for sale in the market
• A brand is an entity like the logo, symbol or name used by the companies, to make their products identifiable
among other products in the marketplace.
• A product can be the need, but the brand is something more than that.
• One can understand it with an example like it is one’s need to wear outfits and footwear, but it is one’s want
to wear outfits of Levis and footwear of Nike.
• Copying a product is easy, but it’s hard or says impossible to copy a brand.
• Companies create products. On the other hand, Brand is created by customers; it takes years and
years to build a brand loyalty.
• Products can be replaced by other products because it becomes obsolete over time. In contrast to
this, brands are forever.
• Product performs its general functions, but a brand offers value to the customers.
• The product is tangible or intangible in nature. However, a brand is intangible it can only be
experienced.
Brand Management
• Brand management is a function of marketing that uses techniques
to increase the perceived value of a product line or brand over time.
• Brand management uses an array of marketing tools and techniques
in order to increase the perceived value of a product
• Effective brand management enables the price of products to go up
and builds loyal customers through positive brand associations and
images or a strong awareness of the brand.
Strategic Brand Management
• Strategic brand management is meant to support companies in getting (or
improving) brand recognition, boosting revenue, and achieving long-term
business goals.
• Strategic brand management is based on choosing a suitable strategy for
the brand’s growth and the frequent updating of the strategy.
• This long-term sustainable policy makes it possible for a company to add
value to its products and services.
• It is a collection of techniques that helps to create a unique identity for an
organization by maintaining brand character, quality and customer
interactions.
• Managing a brand can (and should) include a multitude of aspects, from
centralizing digital assets to upholding brand consistency across various
touchpoints.
Why Strategic Brand Management is
Important?
• Provides greater appeal and differentiation to a brand;
• Enhances customer loyalty and retention;
• Increases employee engagement and alignment;
• Improves perceptions about product performance;
• Decreases vulnerability to competitive marketing actions;
• Accelerates trade cooperation and consumer response;
• Increases marketing communication (MarCom) effectiveness;
• Promotes licensing opportunities.
Strategic Brand Management Process
• Strategic brand management process is important for creating and
sustaining brand equity.
• Developing a strategy that successfully sustains or improves brand
awareness, strengthens brand associations, emphasizes brand quality
and utilization, is a part of brand management.
Steps in Strategic Brand Management Process
• Identify and Establish Brand Positioning and Values
• Designing and implementing brand marketing programs
• Measuring and interpreting brand performance
• Growing and sustaining brand equity