Branding

Definition A brand is a name, term, sign, symbol or design, or a combination of these, that identifies that maker or seller of a product or service. A brand is a name, term, sign, symbol or design, or a combination of these, that identifies that maker or seller of a product or service. It is essentially a seller’s promise to deliver a specific set of features, benefits and services, consistently to the buyers. It is essentially a seller’s promise to deliver a specific set of features, benefits and services, consistently to the buyers.

Brand Name Selection 1. Should suggest something about the product’s benefits & qualities-e.g Fairglow, Kurkure 2. Should be easy to pronounce, recognise and remember. E.g. Tide, Surf. 3. Name should be distinctive. E.g. Kodak, Xerox. 4. Name should transfer easily into foreign languages. 5. Should be capable of registration or legal protection.

Brand strategy: Four Choices Line Extension Line Extension Brand Extension Brand Extension Multibrand Multibrand New Brands New Brands

5 Brand Strategies Line Extension Line Extension Brand Extension Brand Extension New Brands Source: H. Igor Ansoff, “Strategic Diversification”, Harvard Business Review, September-October 1957, pp Multi- Brands Multi- Brands New Brand New Brand Existing Brand Existing Brand New Products New Products Existing Products Existing Products Figure 2.4

Line Extension It occurs when a company introduces additional items in a given product category under the same brand name such as new flavours, forms, colours, ingredients, or size. It occurs when a company introduces additional items in a given product category under the same brand name such as new flavours, forms, colours, ingredients, or size. E.g. Maggie Atta noodles, Maggie multi-grain E.g. Maggie Atta noodles, Maggie multi-grain Advantage: Advantage: Low cost, low risky way to introduce variety Low cost, low risky way to introduce variety To utilise excess capacity To utilise excess capacity To command more shelf space. To command more shelf space. Disadvantage: Disadvantage: Overextended brand may lose significance. Overextended brand may lose significance. Can cause consumer confusion or frustration. Can cause consumer confusion or frustration.

Brand extension Use of successful brand name to launch new or modified products. Use of successful brand name to launch new or modified products. Honda automobiles, bikes & generators Honda automobiles, bikes & generators J & J, Wipro, Godrej J & J, Wipro, Godrej Advantage: Advantage: Gives new product, instant recognition and faster acceptance. Gives new product, instant recognition and faster acceptance. Saves heavy advertising to build a new brand. Saves heavy advertising to build a new brand. Disadvantage: Disadvantage: Extension may confuse the image of the main brand. Extension may confuse the image of the main brand.

Multibrands Multibrands Companies introduce additional brands in the same category. Companies introduce additional brands in the same category. HUL : Close up, Pepsodent HUL : Close up, Pepsodent Lux, Lifebouy, Breeze Lux, Lifebouy, Breeze Taaza, Red Label Taaza, Red Label

New brands A company may create a new brand name when it enters a new product category for which none of the company’s current brand name may be appropriate. A company may create a new brand name when it enters a new product category for which none of the company’s current brand name may be appropriate. E.g J & J used new brand name, Clean & Clear for its new product range of face wash and moisturisers for teen agers. E.g J & J used new brand name, Clean & Clear for its new product range of face wash and moisturisers for teen agers. Pepsi named its mineral water as aquafina and Coke as Kinley. Pepsi named its mineral water as aquafina and Coke as Kinley.

Packaging Packaging involves designing and producing the container or wrapper for a product.. Packaging involves designing and producing the container or wrapper for a product.. The package includes the primary container (the tube holding the Colgate toothpaste), secondary package (cardboard box containing tube) and a shipping package necessary to store, identify, and ship the product. The package includes the primary container (the tube holding the Colgate toothpaste), secondary package (cardboard box containing tube) and a shipping package necessary to store, identify, and ship the product. Packaging is assuming a lot of importance as it acts as a silent salesperson. Packaging is assuming a lot of importance as it acts as a silent salesperson. Innovative packaging can give a company an advantage over competition. Innovative packaging can give a company an advantage over competition. These days environmentally responsible packaging is required. These days environmentally responsible packaging is required. Has become the 5 th P of marketing. Has become the 5 th P of marketing.