Brand Building

What is Brand building? Involves all the activities that are necessary to nurture a brand into a healthy cash flow stream for the company after launch

Advertising does a lot to help build brands Every ad contributes to make the brand what it is in the minds of the consumer A company’s brand is the primary source of its competitive advantage and is a very valuable strategic asset

Brand Equity When a commodity becomes a brand, it is said to have ‘equity’. It starts with a name and can go up or down depending on the marketing activity that is done by the marketer. A name becomes a brand when consumers associate it with a set of tangible and intangible benefits that they obtain from the product or service.

How to measure equity? The premium a brand can command in the market The difference between the intrinsic and perceived value of the product

Building Brand Equity Distinguish product from others in the market – Value proposition Align what it says about the brand in advertising with what it actually delivers – Creating the brand

Power Brands Generates enormous profits Expands future strategic opportunities

What do power brands have that others don’t? A distinctive product Delivering brand promise Personality and presence

Personality Emotional bond with the customer Generates relationships measurably stronger than ordinary brands

Presence Seem to be present everywhere, enforcing distinctiveness National/international scale Successful brand extensions Multiple concept and channels

Brand managers of market-savvy companies need Superior insight into customer needs Ability to devise product/services that powerfully meet those needs Agility to redefine its offering as those needs change Creativity to produce exciting and compelling advertising

Tangibles of brand equity Shape Colour Size Models Price Features Benefits Grades

Intangibles of brand equity Company name Brand name Slogan and its underlying associations Perceived quality Brand awareness Customer base Trademarks and patents Channel relationships Customer loyalty Customer confidence Competitive advantage

Value Proposition Broad positioning Specific positioning Value positioning

Creating the brand Choosing brand name Developing rich associations and promises Manage customer brand contacts to meet and exceed customer expectations

Porter’s strategic choices Product differentiator Low cost leader ‘Nicher’

Positioning guards Should not be overpositioned Should not be underpositioned Should not be ambiguous Should not promise irrelevant benefits Promise should be credible

Brand Associations ‘owned’ word Slogans Colours Symbols and logos

Brand Ambassadors These are used to create the Brand personality, just like a human being. Therefore in some way the values and personality of the ambassador rubs off into the brand. Therfore the brand and choice of the ambassador must fit.

Brand Status Step up advertisingCash cow. Need to sustain brand building activities Product should be phased out Troubled brand. Product upgradation required Esteem Familiarity