411 33 powerpoint-slides chapter-1-introduction-branding chapter 1 introduction to branding

7/28/2019 411 33 Powerpoint-slides Chapter-1-Introduction-branding Chapter 1 Introduction to Branding

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Chapter 1

Introduction

toBranding


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Contents

Concept of branding

Significance of branding

How branding evolved Need to build strong brands

Key issues in branding


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The status dilemma

Neha is a working woman, and she needs a lunch box

to carry to office. She remembers her father leaving

for work every morning clutching his colourless

stainless steel lunch box. But Neha shudders to evenvisualize the look on her colleagues faces if she

walks into office with such a lunch box. Neha has a

number of options available in the market to choose

from, but she needs bright trendy containers, whichcan keep the food fresh for longer periods of time.


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Concept of branding

For the consumers, a brand is a product. But

for the maker or the seller, a brand is an

identifier of its goods and services and a

promise of consistently delivering the

features/benefits that the consumers desire

from the brand.


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Brand to the rescue

Neha found exactly what she was looking for when her friendMeena brought her lunch box to office one day. Meena toldher about Tupperwarea global brand, recognized the worldover. Tupperware products were excellently designed and hadwon prestigious awards like the Red Dot award in 2009 (an

award for excellence in product design instituted by DesignZentrum Nordrhein Westfalen in Essen, Germany), and thecompany was also featured in Forbes.com Platinum 400Americas Best Big Companies List for the sixth time in a rowin 2009. Tupperware had a range of high quality, lightweight,

rust- and break-proof, colourful, airtight, stylish containers,which kept food fresh for longer, thus avoiding waste(Superbrands 2009). They were leak-proof as well, whichmeant that Neha could carry and store curry and gravy items.


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Significance of Branding

Branding is one of the key issues and biggestchallenges in corporate and marketing strategies.

A product that is not branded is a commodity, suchas sugar, rice, etc., and while purchasing a

commodity, one only considers its physical attributesand benefits.

A brand, on the other hand, is a lens through whichthe consumers view the product and the firm.

It is basically a product with added dimensions,which make it different in some way or the otherfrom other products that satisfy the same needs


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Brand defined

According to the American Marketing

Association, Brand is defined as:

a name, term, sign, symbol, or design, or a

combination of them, intended to identify the

goods or services of one seller or group of

sellers and to differentiate them from

competitors


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Historical perspective of branding

Studies show that brands and branding are not a recent phenomenon.

In fact, branding has existed since ages and can be traced back to the timewhen human civilizations originated.

Early language was developed to convey information about two thingsreligion and business transactions. Business transactions (who isinvolved, what was transacted, and how much) were recorded usingsymbols.

These symbols were pictorial in nature (also known as brand marks,logotypes, or icons) and were sometimes accompanied by some text anduse of colour.

These early brands can be called proto-brands and their elements, i.e.,the use of a logo, text, and colour are important for brands even today(Moore and Reid 2008).

Take for example the logo of Anchor Electricals, which includes a pictorialsymbol, text, and red and white colour combination


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Brand

Characteristics

Early Bronze IV

(22502000 BCE)

The Indus Valley

Middle Bronze

Age (20001500

BCE)

Shang China

Late Bronze

Age (1500

1000 BCE)

Cyprus

The Iron

Age

revolution

(1000500

BCE)

Tyre

The Iron

Age

(825336

BCE)

Greece

Moder

n Times

Information logistics

Information origin

Information quality

Image power

Image value

Image personality


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The top 20 most trusted brands, 2010

Brand Rank (2010) Rank (2009) Brand Rank (2010) Rank (2009)

Nokia Mobile

Phones

1 1 Close Up 11 11

Colgate 2 2 Goodnight 12 21

Lux 3 3 Rin 13 43

Dettol 4 5 Tata Salt 14 7

Britannia 5 9 Pepsi 15 26

Lifebuoy 6 4 Maaza 16 46

Clinic Plus 7 15 Vodafone 17 30

Ponds 8 16 Maggi 18 35

Fair and Lovely 9 18 Glucon D 19 14

Pepsodent 10 8 Thums Up 20 39


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What can we brand?

A servicefor example, Life Insurance Corporation, StateBank of India

A productfor example, Nokia mobile, Lux soap, Knorr soup

A storefor example, Big Bazaar, Shoppers Stop

A place/geographic locationfor example, Taj Mahal, India(the Incredible India! campaign)

A personfor example, Aamir Khan, Amitabh Bachchan

An ideafor example, World Wildlife Fund

An online organizationfor example, Amazon, Make my Trip An organizationfor example, UNICEF


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Difference between a Product and a Brand

Attribute

Product

usesQuality/value

Functional

benefits

PRODUCT

Scope

BRAND

Self-expressive

benefits

Symbols

Emotional

benefits

User

imagery

Brand

personality

Organizational

associations

Brand

customerrelationship

Country of

origin


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Rationale for Building a Brand

Benefits of Building Strong BrandsOrganizational Perspective

Identifier

Shorthand for information

Legal protection

Differential advantage Unique associations

Price premiums

Enhancing customer loyalty

Higher market share Inelastic response to price increase

As a barrier to entry of other brands

Can be bought and sold as an asset


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Rationale for Building a Brand

Benefits of Building Strong Brands Customer Perspective

Source of identification

Heuristic or proxy for quality

Source of evaluation A tool to simplify decision making

Risk reducer Financial risk, performance risk, time risk, social risk,

psychological risk

Tool to express self image


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Types of Brands

Functional brands

Image brands

Experience brands


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Branding challenges

Intelligent and educated customers

Growth of private labels

Brand proliferation

Increasing trade power

Media fragmentation and the rise of new media

Increasing cost of product introduction and support

Increasing job turnover


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Overcoming branding challenges

Brand equity

Brand loyalty

Brand switchers

Habitual buyers

Switching-cost loyal

Friends of the brand

Committed customers


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Switching-cost loyalSatisfied with the brand and have a switching cost

Competitors need to overcome switching cost

Committed

customer/consumerTake pride in using the

brand

Recommend brand to othersFriends of the brand

Emotional attachment with the brandTruly like the brand and consider it as a friend

Level 2

Level 3

Level 4

Level 1

Level 5

Brand switchersIndifferent to the brand name

Buying decision based on price, availability etc and

Brand name does not play a significant role in the purchase decisions

Habitual buyers

Satisfied buyers, absence of any dissatisfaction

Vulnerable to competitors stimulations


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Whether to brand or not

How to build brand equity

How to measure brand equity

Understanding customers and how they purchase a brand How to position the brand

Which marketing mix strategies to choose

How to design branding strategies

How to manage brands over time

How to manage brands across geographical boundaries


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Quick Recapitulation

Concept of branding

Significance of branding

How branding evolved Need to build strong brands



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Questions?

411 33 powerpoint-slides chapter-1-introduction-branding chapter 1 introduction to branding

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