Chapter 7 Branding decisions Learning objectives: List the benefits of using branding Describe the role of branding Discuss how a company can protect its brand Explain how to measure awareness through brand equity Discuss how to go about choosing a good brand name Explain what is meant by brand extensions Explain how to use re-branding properly List the benefits of co-branding

The role of branding Branding Benefits of branding A name, symbol, slogan or design that is created with the aim of identifying a seller, manufacturer, provider of a product or service, or the product or service itself. Benefits of branding Adds value to the product or service consumed Has the ability to change consumer perceptions Helps consumers to differentiate between similar products in the same category Differentiate from competitors Tell the consumer about the unique qualities of the product Tell the consumer about the special features of the product and what sets it apart from competing products

The role of branding contd. Brand values The core values and qualities that sum up the essence of the brand. Brand functions/ brand values: Ownership values Differentiation values Functionality values Symbolism values Risk-reduction values Memorizing values Legality values Strategic values Brand awareness: The extent to which consumers are aware of a product service, company or brand.

The role of branding contd. Brand equity: The value – both tangible and intangible – that a brand ads to a product or service. Put another way, it is the power of a brand to create demand for the product or service and favourably influence consumer behaviour. Brand equity is assessed in 3 ways: Monetary Brand extensions Consumer attitudes Brand protection: Through the registration of copyrights, trademarks and patents, the company is assured of legal protection. Brand piracy: The act of designing, naming or packaging a product in a manner that can result in confusion with another, better-known brand.

The role of branding contd. Trademarks A brand name, slogan, specific shape or logo that identifies a product or service and distinguishes it from the products and services of another manufacturer or service provider. Brand name: Consists of one or more words or a combination of letters Slogan: A short phrase or a sentence. Example: Absa’s slogan ‘Today, tomorrow, together’ Logo: A distinctive picture or symbol, which provides a distinctive identity for the product or service in the market place Shape: Can also be trademarked, example: Coca-Cola bottle, Audi TT

The role of branding contd. Copyright A set of exclusive rights granted to the author or creator of an original work, including the right to copy, distribute and adapt the work May license, transfer or assign their rights to others Granted a specific term (in RSA, 50 years after the death of the creator, then it becomes public domain)

Branding assessments Brand names and brand marks Help companies to identify and distinguish their products. The company should choose a name that is easy to remember and to pronounce so that the brand will be easily recognised by its target consumers. The brand name should also reflect the true image of the product. International branding and cultural differences Words – in one language may mean something completely different in another language and can result in a negative brand image. Colours – careful consideration when designing promotional and instructional materials. Example: in Asia the colour white symbolises death, while in Western cultures it symbolises purity.

Branding strategies Different branding strategies Generic products: Companies decide to sell their products without any investment in branding. Usually have a very basic label with no branding and the company spends very little money to promote or advertise the product and are usually cheaper than branded products. Manufacturer brands: Produced and promoted by the manufacturer. Example: Coca-Cola, Samsung, Nokia. Private brands: Successful distributor, usually a retailer may buy in bulk from the manufacturer and then put its own name or logo on the product. Family brands: Common brand name that is used for several related products, this type of branding is known as umbrella branding. Individual brands: Promoted independently rather than being bundled under a company name or family brand. Cost of promoting is higher than any other type of brand. Example: Castle Lager.

Brand management A ‘good brand’ must: Brand management Entails making decisions about, among other things, advertising, promotion and market allocation. Effective management must define the brand in terms of: Target market Usability Functionality Unique features Special consumer needs Competing products in the market segment A ‘good brand’ must: Offer consumers added value Evoke feelings Create excitement Direct consumer preference

Brand management contd. Extensions: Companies that own highly successful and widely admired brands often decide to take advantage of their winning brand by extending it to other products or services.

Brand management contd. Re-branding: The process of giving an established brand a new name, logo, slogan or design with the intention of making it more attractive to consumers. Aimed at: Repositioning the brand Improving brand differentiation Overcome negative opinions or perceptions Applied to: New products Products still in the process of development Even mature products

Brand management contd. Co-branding An increasingly popular strategy used by companies interested in exploiting the positive association of their brand with another company’s brand to promote a newly formed co-brand.

Questions The brand name Pioneer is unique, but Pioneer Plasma created a difference in that it was the first to introduce high definition (HD) plasma screens in 1997. This is an example of differentiation values of a brand. Name and describe the other 7 brand values/ functions. (14) Radox bath oil, bubble bath, liquid soap and shower gel can be seen as a family brand. Name and describe, with the use of an example, the other 4 branding strategies. (8) Brand management is pivotal to the longevity of any brand and managers may make decisions to extend their brand offerings so as to take advantage of their winning brand. Name and describe the 3 types of extensions brand managers could employ. (6)