brand management - iv

7/28/2019 Brand Management - IV

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BRAND IDENTITY

Managing a brand has two aspects:

The brand as it is intended to be – brand identity

The brand as it is actually perceived – brand image



BRAND IDENTITY

Brand Identity

A unique set of brand associations that the brand

strategist aspires to create or maintain. Theseassociations represent what the brand stands for and

imply a promise to customers from the organization

members.It is a strategic exercise to spell out a brand’s domain



Brand Identity defines what the brand is & what it

intends to become, what is the brand’s essence,its core proposition, its uniqueness and its focus



Brand Identity Perspectives-- How a brand may create value for its

customers:

1. Brand as a product

2. Brand as an organization

3. Brand as a person

4. Brand as a symbol



Brand as a ProductFocus – what all product related associations would

be created - Product attributes, quality, users, uses,

etc.e.g., Visa & cards; Cherry Blossom & boot polish;

Orient fans & PSPO

Johnson&Johnson – for babiesWills - lifestyle



Brand as an OrganizationFocus – company or organization that makes or

markets it. Organizations achieve extraordinary

excellence in aspects which customers valuee.g., Hewlett Packard & 3M – innovation; Motorola –

quality; British Airways – People sensitive culture



Brand as a person

Focus – conceived or perceived human like traits(both demographic & psychographic) in the brand. An appealing brand personality is created usinghuman associations. Through images portrayed in

communication, sponsorship, symbols, brandambassadors, etc.

Benefits – a vehicle of self expression, relationship

between customer & brand, communicate productattributes

e.g., Omega, Mercedes, MRF



Brand as a Symbol

Anything which represents the brand could be a

symbol

Focus – ability to gain recognition & recall

3 types:

Visual image, metaphor, heritage of the brande.g., golden arches of McDonald, LIC symbol



Brand Identity Levels

1. Inner Core or Central Identity

2. Outer Core



Inner Core

--The spiritual centre

Reasons why the brand has been brought intoexistence – its USP, its spiritual centre

Lux – beauty bar for young women

Dettol – antiseptic, protection from germs



Outer Core

--The manifested elements

Provides direction & meaning to the inner core. Allbrand elements combine to make up brand identity;

the outer core completes the picture & provides it

meaning



sss

OUTER CORE

Design

Character Product

SloganPackaging

Logo/Symbol Personality

Brand Name

INNER CORE

The spiritual centre/

brand essence/ brandsoul

BRAND VALUE PROPOSITION



Brand Identity – Horlicks

Inner core : Nutrition & healthOuter core :

User : Anyone who needs nutrition & health; children,to-be mothers, old people, working people,housewives

Product scope : Products that supplement nutritionalneeds

Extensions : Horlicks, Horlicks Junior, Horlicks Plus,Mother’s Horlicks, Horlicks Chocolate, HorlicksBiscuits



Slogan : ‘The great family nourisher’

Heritage : The company has been in business of providing nourishment for decades

Personality : Protecting, caring, supportive, concerned

Value Proposition : Helps you perform your role better in life. Good health and living.



BRAND IDENTITY PRISMS

Kepferer – developed a model of brand identity, with

six dimensions1. Brand Physique - refers to its physical aspects;

embedded in the product. e.g., IBM – data systems,

computers, servers, etc.2. Personality - brand develops a character of its own,

human traits in a brand. e.g., Pepsi – young,

energetic, funny3. Culture - a system/network of values that lies behind

a brand. e.g., Apple – friendliness & benevolently

iconoclastic values; Rolex – Swiss craftsmanship



4. Relationship – ability of the brand to forge customer relationships; carries various hooks on which thebonds are created. e.g., Nike – success, guts,individuality, initiative & spontaneous action

5. Reflection – image of its buyers whom it seeks toaddress. e.g., Whirlpool – upper middle class, young

couple, well educated, well employed, urban6. Self image – how a customer sees himself/herself in

relation to the brand. e.g., a person buying a CFC-

free air-conditioner – may feel he is expressing hisconcern for environment.

Reflection is target customer’s outward facade, while self -image is internal reflection.



BRAND CHECK

Monitoring of brand image and environment on

an on-going basis. Focuses on a brand’s

constituent dimensions.

Investigation into three aspects of a brand:1. Brand awareness

2. Brand image

3. Brand positioning



Brand AwarenessReflected in:

a. Brand recognition – ability to identify the brand

elementsb. Brand recall – ability to retrieve the brand from

memory - aided & unaided recall



Brand Image

Involves the following checks:

a. Brand’s primary associations - first word that

comes to mind

b. Brand associations – uncovering whatever is

associated with the brand name

i. Simple association inventory – listing whatever

comes to mind when one thinks about the brand

ii. Relative brand image profile analysis – convertingthe brand associations into a semantic differential

scale



iii. Attitude to the brand analysis – to uncover the

relationship between attitude & behaviours; involves

three steps:

Uncovering the beliefs – what all associations

come to mind when the brand is thought of

Belief strength – how likely is it that the brand

has an attribute Evaluation – how good or bad is it for the brand

to have that attribute

c. Brand personality – represents the human dimension;asking respondents to visualize the brand as a

person & describe his/her characteristics



Brand Positioning

Identifying positioning errors

a. Under positioning – buyers’ lack of understanding

about the brandb. Over positioning – only narrow image of the brand

c. Confused positioning – brand trying to associate

with many things, resulting in confusiond. Doubtful positioning – consumers finding it hard to

believe the claims made by the brand



LINE & BRAND EXTENSIONS

LINE EXTENSIONS

Making entries into a brand’s existing product category

by using the same brand in the form of varyingproduct sizes, flavours, colours, ingredients, forms, etc.

Two things remain constant:

1. Brand name2. Product category



WHY LINE EXTENSIONS?

Customer segmentation - Line extension is a low

cost & low risk strategy to more effectively meet the

needs of emerging customer segments.

e.g., Colgate herbal (for herbal segment) Colgate

strong teeth (for children segment)

Customer Need for Variety - Variants help brands to

keep their loyal customers by meeting their desire

to try something new. e.g., Cinthol Lime & CintholCologne



Pricing Breadth - Provides greater pricing flexibility

& opportunity to enjoy representation across a wider

spectrum of customers. e.g., Platinum, Gold, Silver & Classic in the card line

Capacity Utilization - Extension as a means of

utilizing excess capacityQuick Gains - Generates more sales quickly &

relatively inexpensively; new brand launches being

costly with dismal success rate.Competitive Reasons – More extensive product line

helps to get access to more shelf space at the

expense of competition. e.g., HLL products



Trade Demands - Trade partners exert pressures on

to extend line to meet their unique marketing strategyneeds arising out of channel or store specialization.

e.g., premium stores, mass stores, speciality stores,

frill-free stores, designer stores, etc.Counter Competition – To counter or neutralize

competition. e.g., Close-Up & Colgate Gel

Image Benefits - An opportunity to build a positiveimage &renew it



LINE EXTENSION RISKS

Line Confusion - Adding products to the line without

logic results in line confusion leading to confusedcustomers & confused retailers

Encourage Variety Seeking – Encourage brand

switching behavioursSuccess Myopia - Good ideas may be brought into

the market as line extensions, rather than a full-fledged independent brand

Strained Relations - Marketers may apply pressuremore intensively at the retail level leading tostrained relations between the two



LINE EXTENSION TRAP

Occurs when a successful brand name is extended

to promote a product in an unrelated category. But it

is difficult for the brand to simultaneously acquire a

second meaning. It goes against the fundamentals

of positioning & perception.



BRAND EXTENSIONS

Involves using an existing brand name to launch a

product in a different category – use of a brand name

established in one product class to enter another

product class



WHY BRAND EXTENSIONS?

Cost of new launches – huge investments required

to develop & launch a new brandPromotional efficiency – name awareness already

exists; indirectly benefits other products sharing thesame brand name

Consumer benefits – familiar; less risky route to anew product category

Feedback effects – broaden product meaning;

strengthen brand associationsReturns – diversified brands generate superior

returns compared to focused brands



TYPES OF BRAND EXTENSIONS

Product form extensions – different product forms

constitute an entirely different product category fromcustomer behaviour perspective

e.g., liquid milk & dried milk – Amul milk & Amulcondensed milk

Companion product – capitalizing on productcomplementarities

e.g., Colgate dental cream & Colgate tooth brush;

Gillette razors, Gillette shaving cream & Gilletteafter shave



Company expertise – products emanating from acommon expertise pool

e.g., Honda cars, Honda gensets, Honda scooters &Honda lawnmowers

Customer franchise – to meet the diverse needs of acustomer group

e.g., Johnson & Johnson baby shampoo, J&J babytalc, J&J baby oil & J&J baby diapers

Brand distinction – to cash in on a brand distinction

already achievede.g., Parachute(coconut nourishment) Parachutehair oil, Parachute shampoo, Parachute cream



Brand image or prestige – based on brand’s

exclusive image or prestige value

e.g., Cartier jewellery, Cartier watches, Cartier purses, Cartier pens

Distinctive taste, ingredient or component – brand

equity based on a combination or any of taste,ingredient or component

e.g., Nescafe coffee, Nescafe biscuits, Nescafe cold

coffee, Nescafe milk supplement



GOOD, BAD & UGLY EXTENSIONS

The Good Extensions – parent brand contributing +vely

to the extended product ;extended product succeeds,parent brand benefits

e.g., Dettol soap, Nirma soap

The Bad Extensions - when name does not help theextension; extension fails to lift off

e.g., Ponds toothpaste, Nirma toothpaste, Pierre

Cardin writing instrumentsThe Ugly – when the extension creates undesirable

attribute associations, hurting quality perceptions;

extension fails to lift off, damages the parent brand



BRAND EXTENDABILITY

Depends on brand’s character, whether the brand is a :

Product brand – little difference between product &brand e.g., Rose brand flour

Formula brand – a standard procedure has been

used to make the product e.g., cooking oil, food &pickle categories

Know-how brand – expertise in a specialized area

e.g., Honda(engines), Amul(milk processing)Interest brand – defined by its centre of interest

e.g., Gillette(men’s grooming), Whirlpool(home)



Philosophy – brand acquiring more intangible

character & orientation e.g., Armani, Cartier

Easier to extend – Philosophical & symbolicbrands

Narrow zone of extension – Product & Know-

how brands

Parent and the extension must have a good fit

brand management - iv

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