Final session By K Anandhi CII-IL Brand Management Final session By K Anandhi CII-IL

Brand A name, term, symbol, design, or combination thereof that identifies a seller’s products and differentiates them from competitors’ products.

An Effective Brand Name Is easy to pronounce Is easy to recognize and remember Is short, distinctive, and unique Describes the product, use, and benefits Has a positive connotation Reinforces the product image Is legally protectable

Branding Brand Name Mark Equity That part of a brand that can be spoken, including letters, words, and numbers. The elements of a brand that cannot be spoken. The value of company and brand names. Awareness, quality, loyalty, patent and trademark.

Benefits of Branding Powerful asset/tool in establishing competitive advantage- translates into brand equity ( the value of the company and brand names) Product identification! Consumers familiar with brand Often equates to quality Global brand = 20% of product sold outside home country Acts as an ambassador

Advantages of Branding Consumer’s viewpoint Product quality and consistency Increased shopper efficiency/identification Calls attention to new products Reduces psychological risk Seller’s viewpoint Handling orders, tracking down problems Trademark – legal protection and unique product feature. Brand equity and brand loyalty Reduces need for in-store contact Facilitates segmentation, promotion, and pricing

The World’s Most Valuable Brands

Major Branding Decisions Brand Name Selection Selection Protection Major Branding Decisions Brand Sponsor Manufacturer’s Brand Private Brand Licensed Brand Co-branding Brand Strategy Line Extensions Brand Extensions Multibrands New Brands

Branding Strategies Brand No Brand Manufacturer’s Brand Private Brand Individual Brand Family Brand Combi- nation Individual Brand Family Brand Combi- nation

Generic Brand A no-frills, no-brand-name, low-cost product that is simply identified by its product category.

Manufacturers’ Brands Versus Private Brands The brand name of a manufacturer. A brand name owned by a wholesaler or a retailer. Also known as a private label or store brand.

Individual Brands Versus Family Brands Using different brand names for different products. Marketing several different products under the same brand name.

Godrej Fair glow fairness Four Brand Strategies Line Extension Godrej Fair glow fairness Washing machine. Multibrands Brand Extension Brand Rejuvenation Brand Relaunch Brand Proliferation New Brands Name Ex: Manikchand Brand Name Existing New Product Category

Line Extension Development of a product that is closely related to one or more products in the existing product line but designed specially to meet the somewhat different needs of customers.

Brand extension Extending the brand to another form of same product. (e.g. Toothpaste) Product Line extensions e.g. Saffola Oil. Reaching new categories Fairness creams to soap. Easy flow of soaps in the market Two Types: Upward brand extensions (upper market segment) Downward brand extensions (lower market segment). Ex. Nirma

Brand Rejuvenation Process of revitalizing an ailing brand. E.g. Cadbury’s, Horlicks Three steps involved 1. Discovery: process of identifying the company and what they mean to the customers 2. Innovation: shortcoming are removed and tested on loyal customers and wholesalers. 3. expression: project positive image of the brand in the customer’s minds. Product Relaunch: Product launched after a time gap.

Brand Proliferation It is an introduction of product with new brand names in the same product category. It is converse of brand extension. It helps to increase the market share of the product. Eg. HUL with different brand of same type of products. Disadvantage: Company’s brands compete with each other Company has to divide the resources among these brands for their maintenance. The cost of distribution ,advertising, packaging and inventory costs also go up significantly.

Multibrands Firms adopt multiple branding strategies to capture a greater market share by filling the gaps in the market and catering different buying pattern of the customers. Ex: nokia cell phone, Bike Disadvantage With the multi-branding strategy is that the company may obtain a smaller market share of all the brands.

Complementary Branding Cobranding AOL Ingredient Branding Cooperative Branding Complementary Branding Types of Cobranding On Line: Kellogg’s and Disney How are Kellogg’s and Disney promoting their cobranding of cereals on their company Web sites? Does one of the two companies benefit more than the other from the arrangement? If so, which one? How? On-Line: Post and Quaker Oats Ingredient branding can enhance the prestige and value of a brand.  Cookies and candies are some common ingredients that appear in other products, like cereal and ice cream.  Visit the Post Cereal and Quaker Oats Web sites to see how each company has incorporated ingredient branding into its marketing strategy.  What ingredients is each company using in its products?  Do you think the cobranded products you find have increased value over a plain product (i.e., a product without a branded ingredient)? On Line http://www.kelloggs.com http://www.disney.com On Line http://www.postcereal.com http://www.quakeroats.com

Co branding Two or more brand names on the product or its package Ingredient branding i.e., Hero Honda recommending MRF tyres Cooperative branding Airline/hotel/credit card packages Borrow on each other’s brand equity Complementary branding Advertised or marketed together to suggest usage–Coco cola recommending kinley mineral water.

Brand Management Brand equity: The goodwill (equity) that an established brand has built up over its existence. “DREK” -- differentiation, relevance (strength) -- esteem, knowledge (stature) Brand concept: specific meaning that brand managers create and communicate to the target market. Brand concept management: the analysis, planning, implementation, and control of a brand concept throughout the life of the brand. Semiotics: Science of signs E.g HUL testing Power Brands(30)

Facilitate Storage, Use, Packaging Functions of Packaging Contain and Protect Promote Facilitate Storage, Use, and Convenience Facilitate Recycling

Packaging Activity of designing and producing the container or wrapper for a product. Packaging used to just contain and protect the product. Packing now has promotional value and marketers should: Establish a packaging concept, Develop specific elements of the package, Tie together elements to support the positioning and marketing strategy. VIEW Model

Packaging Not just the container– part of the on-going promotion/advertising #1 job is still containment/protection of product #2 Promote the product Way to differentiate from competitors Inform the customer (ingredients, size, etc.) Colors to cue customers (green = healthy) #3 Faciliate storage, use and convenience Also way to segment market (sugar in big crummy bag vs. carton== type of user, single servings, kid friendly/safe) #4 Facilitate recycling and reducing environmental damage

Labeling Printed information appearing on or with the package (e.g., Nutrition Facts Panel) Performs several functions: Identifies product or brand Describes several things about the product Promotes the product through attractive graphics.

Labeling Persuasive Informational Helps make proper selections Focuses on promotional theme Information is secondary Informational Helps make proper selections Lowers cognitive dissonance Includes use/care On Line Food and Drug Administration Just what does the label on your snack foods say? What about your makeup? Go to the Food and Drug Administration’s Web site to read the exact requirements for labeling various products. Pick a product and report back to the class.

Packaging and Labeling Persuasive: promotional first, and customer information is secondary Use a logo or theme “New”, “improved” don’t do as much for consumer Informational labeling: Help consumer make “right” choice and lessen possible cognitive dissonance i.e., nutrition labels, care information, construction standards, etc.

Universal Product Codes UPCs A series of thick and thin vertical lines (bar codes), readable by computerized optical scanners, that represent numbers used to track products.

Any doubts???