1. Lecture Wk 4 L1
Branding

2. Branding
‘The brand is the aura of beliefs and expectations about a product/service which make it relevant and distinctive
It stretches beyond the physical and into the psychological and is extremely powerful’

3. Why Brand? For differentiation & recognition
To add value to a naked commodity
Easier to promote
Helps market segmentation
Can help boost share price
Easier to integrate
Sales promotion, personal selling & packaging
Can help corporate image

4. Brand Development INCREASED SALES COST EFFICIENCIES VOLUME BUILDING
INVEST IN
NEW BRAND
BUILD AWARENESS
OF ATTRIBUTES
SALES INCENTIVE
PROGRAMME, TRADE
PROMOTION, P.O.S
BRAND SALES GROW
RETAILER CONCENTRATION
VOLUME BUILDING
IMPROVED PRODUCTS
RETAILERS
LIST
BRAND
BRAND RECOGNITION
AND CUSTOMER
DEMAND FOR BRAND
WIDER DISTRIBUTION
NETWORK BUILT UP

5. Types of Brands Individual brand Umbrella or blanket brand
Proctor & Gamble
Unilever
Umbrella or blanket brand
Heinz
Dyson
Separate family names for different product divisions
Eskimo
Igloo
Company name
Kellogg’s

6. Brand and Added Value Core products Actual product Augmented product
A car
Actual product
BMW 500 series
Augmented product
BMW 523 with air conditioning
It is often the brand that is bought and not the product

7. Branding Strategies Line extensions Brand extensions Multi-brands
New brands
Co-brands

8. The Biggest Brands in the World
Value $ billion
Coca Cola
Microsoft
IBM
…….

9. Long Term Process
Promotion must continually remind the market of the brand’s presence:
What is the current brand image?
What brand form has been identified for the organisation?
How does this form relate to current and future corporate strategy?
How is the brand positioned in the mind of the target buyer?
How does the brand relate to the competition?
How should the brand image be changed or reinforced?

10. Maintaining Market Share
Major brands use share of voice = share of market to maintain equilibrium
To sustain brand loyalty and exposure, all promotional tools can be used as appropriate

11. Developing Retention and Encouraging Loyalty
To sustain loyalty to an established product/service/ brand:
Sales promotion
Advertising
Public relations
Direct-response media

12. Brand Equity Asset value of the name
The intangible / goodwill difference
The added value
McV Jaffas
M&S Jaffas
Tesco Jaffas