Download - Brand Equity
BRAND EQUITY, BRAND POSITIONING, BRAND ELEMENTS
Resonance, Judgments, Feelings, Performance, Image, Salience 2/12/2013
Two Case lets on Brand Management
Boost : GSK
Bacardi
2/12/2013
New Product Development
HMM ( Smithkline Beecham Consumer Healthcare), GSK ( Glaxo
SmithKline), Horlicks
Malted Milkfood Market ( 1972 )
Bournvita – 75 %
Ovaltine – 18%
Others - 7 %
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Product Brief
Product should have a distinctive taste to suit the Indian palate. It must not
be a ―me too‖ product.
No sugar should be added.
The quantity of cocoa to be used should be minimal.
The product should be granular and look like any other brown Milkfood
powder.
The end price should be equal to the brand leader.
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Product Development
Technical department developed a brown Milkfood with two flavour variants
– HC44( malt extracts) , HC3 ( Horlicks as the main ingredient)
IMRB – Blind in-hall test
Preference for HC44, better than Ovaltine but lost out to Bournvita
The bitter/medicinal taste should be eliminated
Product purchase dimensions
Taste
Flavour ( particularly a chocolate flavour )
Sweetness levels2/12/2013
Packaging
Glass Jar would give a distinctive image, as all existing brown powders
were being marketed in tins.
In India, after-use of a container is a very strong selling points for a
housewife.
Costwise, glass jar would be cheaper than a tin.
It was stressed that the mouth of glass jar should be wide enough for a
housewife to put her hand inside the jar so that its after – use value is
enhanced.
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Brand Name
Names Tested Overall Preference Suitability for brown Milkfood
Boost 1 2
Brownie 3 4
Bruno 4 3
Revenaq 8 6
Solo 7 5
Tango 6 7
Tiger 5 8
Vita-Plus 2 1
Zip 9 92/12/2013
Label & Logo Design
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From the Makers of Horlicks
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Advertising Campaign
Brief
Brown powder as milk additives, Children/Mothers as TG
Clutter in Milkfood market – energy, strength, nourishment.
The campaign should project some unique features
Ensure brand cannibalization does not happen ( Horlicks)
―Taking into account the fact that there could be any analogy between the
fuel needed by a steam engine and the energy giving food needed by a
growing child, I have tried to bring a link between the two types of energy so
as to make it visually attractive and memorable‖ Creative Director, JWT
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Marketing Inputs - Kerala
Local excitement was created through processions of elephants announcing
the introduction of Boost.
Liquid sampling of boosts.
A trade deal, with every case of 18 bottles, one 450 gm boost bottle free.
Display contests were conducted at selected outlets.
Media Plan
Primary Media – Press, Cinema
Secondary Media - radio, hoarding
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Consumer Offtake
Bournvita – 49%
Ovaltine – 8%
Boost – 40%
Others – 3%
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Advertising Research ( 939 households)
Brand Awareness – 90 %
Major sources of advertising recall were : Newspapers ( 59%), radio ( 49%),
cinema (24%) and shop displays ( 21%).
Boost as a family drink – children, housewife, husband.
Usage pattern – before going to bed ( 49%), at breakfast time ( 38%), before
going to work/school – 23%
Boost better than ( Bournvita and Ovaltine users) slightly better than
Bournvita in taste, miscibility. Brand Switch – 49 % , 23 % Bournvita &
Horlicks
Packaging liked, Makers of Horlicks didn‘t seem to be a factor influencing
brand trial. 2/12/2013
Challenge
Trying to develop a visual which would depict a railway engine – and then
tie it up with a beverage. Somehow the two did not seem to aesthetically
blend.
Indian Arm : Energy Fuel, showed a train with a bottle of Boost with
passengers.
― On a Sunday morning, while sitting in my room, I saw young children
playing games they had formed what could be called a ―human train‖.
They started jogging and began to make the typical chugging noise of a
train.‖ Indian Creative Team
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Brand Equity
‗Brand equity can be thought of as the additional cash flow achieved by associating
a brand with the underlying product or service‘
(Biel 1992)
‗Brand equity is a set of brand assets and liabilities linked to a brand, its
name, and symbol, that adds value to or subtracts from the value provided by a
product or service to a firm and/or to that firm‘s customers‘
(Aaker 1991)
‗The differential effect the brand knowledge has on consumer response to
marketing of that brand‘ Keller, 20042/12/2013
Brand Equity
Equals summation of Brand Assets & Brand Liabilities*
Liability will take on the negative sign though.
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Need to build brand equity
It positively impacts consumers‘ willingness to pay price premiums.
It leads to ‗higher efficiency and effectiveness of their marketing
programs’.
Apple didn’t spend much on Marketing in India while launching
iPhone owing to it’s strong brand equity.
It positively impacts the company‘s Market share, Market Capitalization.
It results in improved future profits and long-term cash-flow.
It can build brand loyalty( Reduces Churn), which in turn reduces
marketing costs
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…
It can deliver Emotional, Safety, Prestige, or other benefits that are
important to consumers.
It reduces the anticipated risk, enhances anticipated confidence in the brand
purchase decision, and increases satisfaction with the brand.
It leads to sustainable competitive advantage.
Strong brand equity can help in achieving success for new products
launched as brand extensions.
Tata as a Brand, Wipro,
New Coke, Harley Davidson ( * Brand Failures – Matt Haig)
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Brand Knowledge
Brand knowledge consists of a brand node in memory with a variety of
associations linked to it.
Brand knowledge has two components: brand awareness and brand
image.
Brand Image of Yamaha
Performance
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Sources of Brand Equity
Brand awareness
Brand recognition
Brand recall
Brand image
Strong, favorable, and unique brand associations
Brand Awareness, Brand Loyalty, Perceived Quality, Brand Association
Customer Touchpoints, Word Of Mouth, Buzz Marketing, Impressions
generated through ATL, BTL, Social Media. ( Online Reputation
Management)
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TV (terrestrial, BS, and CS)
Mobile sites and Segbroadcasting
SNS and blogs
Free newspapers and magazines
Video websites
Internet
NewspapersOOH
Consumer
The media environment surrounding consumers
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Daily Life of a person in a Tier 1 City
Home
Inside train carStation Ticket wicket Stairs/platform
Vending machine
Inside train car Stairs/platformTicket wicket Station
Office
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•At Customer touchpoints
•Service centers – After Sales Service
•Product – Usage
•Employee
Experience with the BRAND
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Brand Awareness Advantages
Learning advantages
Register the brand in the minds of consumers
Consideration advantages
Likelihood that the brand will be a member of the consideration set
Search ( AIDSAS Model)
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David A. Aaker
Kevin Lane Keller
Brand Equity Models
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Customer-Based Brand Equity Pyramid
RESONANCE
SALIENCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
4. RELATIONSHIPS =
What about you and me?
3. RESPONSE =
What about you?
2. MEANING =
What are you?
1. IDENTITY =
Who are you?
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Sub-Dimensions of CBBE Pyramid
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT
QUALITY CREDIBILITY
CONSIDERATION
SUPERIORITY
WARMTH
FUN
EXCITEMENT
SECURITY
SOCIAL APPROVAL
SELF-RESPECT
CATEGORY IDENTIFICATION
NEEDS SATISFIED
PRIMARY CHARACTERISTICS &
SECONDARY FEATURES
PRODUCT RELIABILITY,
DURABILITY & SERVICEABILITY
SERVICE EFFECTIVENESS,
EFFICIENCY & EMPATHY
STYLE AND DESIGN
PRICE
USER PROFILES
PURCHASE & USAGE
SITUATIONS
PERSONALITY &
VALUES
HISTORY, HERITAGE
& EXPERIENCES
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Salience Dimensions
Depth of brand awareness
Ease of recognition and recall
Strength and clarity of category membership
What is level of brand awareness when you think about the Brand Google
vis-a-vis IBM?
Breadth of brand awareness
Purchase consideration
Consumption consideration
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Depth and Breadth Importance
The product category hierarchy shows us not only the depth of awareness
matters but also the breadth.
The brand must not only be top-of-mind and have sufficient ―mind share,‖ but
it must also do so at the right times and places.
Tropicana : We want consumers to recognize the Tropicana Brand when it is
presented to them. Beyond that they should think of Tropicana whenever they
think of orange juice, particularly when they are buying orange juice. They
should think of Tropicana whenever they are buying any beverage, especially
when seeking a ―tasty but healthy‖ beverage.
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Beverages
Water Flavored
Non Alcoholic
Milk JuicesHot
BeveragesSoft
Drinks Energy Drink
Alcoholic
Wine BeerDistilled Spirits
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Brand Salience
A highly salient brand is one that has both depth and breadth of brand
awareness.
Brand Meaning
Major categories of Brand Associations
Brand Performance & Brand Image
These associations can be formed directly, from a customer‘s own
experiences and contact with the brand, or indirectly through source of
information, such as word of mouth.
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Performance Dimensions
Primary characteristics and supplementary features
Product reliability, durability, and serviceability
Service effectiveness, efficiency, and empathy
Style and design
Price
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Brand Performance
How well the product or service meets customers‘ more functional needs.
Reliability – measures consistency of performance over time and from
purchase to purchase.
Durability – expected economic life of the product
Serviceability – ease of repairing the product if needed
Service Efficacy – speed and responsiveness of service
Service effectiveness – how well the brand satisfies customers‘ service
requirements
Service empathy – extent to which service providers are seen as trusting,
caring and having the customer‘s interests in mind. 2/12/2013
Brand Imagery
Extrinsic properties of the product or service
Measures ability to meet customers‘ psychological or social needs.
It‘s the way people think about the brand abstractly
Nivea skin cream in Europe ( Rich Brand Imagery), few intangible
associations are
Family/shared, shared experiences/maternal, multipurpose,
classic/timeless, childhood memories
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Imagery Dimensions
User profiles
Demographic and psychographic characteristics
Group perceptions—popularity
Purchase and usage situations
Type of channel, specific stores, ease of purchase
Time (day, week, month, year, etc.), location, and context of usage
Personality and values
Sincerity, excitement, competence, sophistication, and ruggedness
History, heritage, and experiences
Nostalgia
Memories
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Brand Imagery
Microsoft as an aggressive company.
Apple Inc. cool and innovative
Domino‘s pizza – channels of distribution : 30 min Delivery
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Judgment Dimensions
Brand quality
Value
Satisfaction
Brand credibility
Expertise
Trustworthiness
Likeability
Brand consideration
Relevance
Brand superiority
Differentiation
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Feelings Dimensions
Warmth – Hallmark
Fun – Disney
Excitement - MTV
Security – LIC
Social Approval – Mercedes
Self-respect – Tide
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Resonance Dimensions
Behavioral loyalty
Frequency and amount of repeat purchases
Attitudinal attachment
Love brand (favorite possessions; ―a little pleasure‖)
Proud of brand
Sense of community
Kinship
Affiliation
Active engagement
Seek information
Join club
Visit website, chat rooms
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Building
Brand
Equity
Brand
knowledge
Brand
associations
Perceived
quality
Brand
loyalty
Company
image
Brand
community
Brand
elements
Corporate
Societal
Marketing
Perceived
Advertising
spending
Joint
Branding
programmes
Distribution
channels
Country-of-
origin
Endorsements
Events, third
party
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Brand Positioning
―. . . the act of designing the company‘s offer and image so that it occupies a
distinct and valued place in the target customer‘s minds.‖
Philip Kotler
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Bacardi: : Brand Positioning Concepts
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Bacardi
Brand Objective : As an icon of new age drinking
Conceptual target : Post liberalization young adults.
Core Desire : Unshackle themselves
Role of the product :
Functional – Relaxant, Social Lubricant, Gives a high
Symbolic – Let your hair down … have fun
Reason to believe – Less intense in looks, hence eminently adaptable to
broader drinking occasions.
Brand Essence : Vibrant Sensuality2/12/2013
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Positioning Concepts
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The Bacardi Bat
Brand Elements
Creative Strategy/ story behind this trademark Symbol
Colony of fruit bats living in the rafters of the first Bacardi distillery
Donna Amalia , who was cultured in the arts believed that ―Bat represented a
blessing of good health, fortune, and family unity.‖
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Determining a frame of reference
What are the ideal points-of-parity and points-of-difference brand
associations vis-à-vis the competition?
Marketers need to know:
Who the target consumer is
Who the main competitors are
How the brand is similar to these competitors
How the brand is different from them
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Target Market
A market is the set of all actual and potential buyers who have sufficient
interest in, income for, and access to a product.
Market segmentation divides the market into distinct groups of
homogeneous consumers who have similar needs and consumer behavior,
and who thus require similar marketing mixes.
Market segmentation requires making tradeoffs between costs and benefits.
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Example of the toothpaste market
Four main segments:
Sensory: Seeking flavor and product appearance
Sociables: Seeking brightness of teeth
Worriers: Seeking decay prevention
Independent: Seeking low price
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Core Brand Associations
Abstract associations ( attributes & benefits) that characterize the 5 to 10
most important aspects of dimensions of a brand, they can serve as the
basis of brand positioning in terms of how they create points of parity and
points of difference.
Ask consumers to create a detailed mental map of the brand. ( Ask for top-
of-mind brand associations)
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MTV Core Brand Associations
Music: What‘s hot and what‘s new
Credibility: Expert, trusting, reality
Personality : Hip, Cool , Irreverent
Accessibility : Relevant, for
everyone
Interactivity : Connected &
Participatory
Originality: Genuine, Creative
Modern : Hip & Cool
Community : Shared Experience
Fluidity - Always Changing &
evolving
Spontaneity: up-to-the minute,
Immediate
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MTV
Young
Hip & Cool
Irreverent & Rebellious
Music
PopularLifestyle
Connected
Original
Fun & Entertaining
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Brand Mantras/brand essence/core brand promise
Heart & soul of the brand
A short 3-5 word phrase that captures the irrefutable essence of spirit of the
brand positioning
E.g.. McDonald‘s Brand Philosophy : Food, Folks, and Fun
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Brand Mantra of Nike & Disney
Emotional Modifier Descriptive Modifier Functional Modifier
Nike Authentic Athletic Performance
Disney Fun Family Entertainment
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Brand Mantras
Brand functions term describes the nature of the product or service or the
type of experiences or benefits the brand provides.
Descriptive modifier further clarifies the nature – Nike‘s performance is not
just any kind ( not artistic performance, for instance) but only athletic
performance , Disney‘s entertainment is not just any kind ( not adult
oriented) but only family entertainment
Emotional Modifier provides another qualifier – how exactly does the brand
provide benefits and in what ways?
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Points-of-Parity and Points-of-Difference
Points-of-difference (PODs) are attributes or benefits that consumers
strongly associate with a brand, positively evaluate, and believe that they
could not find to the same extent with a competitive brand.
Points-of-parity associations (POPs), on the other hand, are not necessarily
unique to the brand but may in fact be shared with other brands.
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Core Brand Values
Set of abstract concepts or phrases that characterize the five to ten most
important dimensions of the mental map of a brand
Relate to points-of-parity and points-of-difference
Mental map Core brand values Brand mantra
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Brand Mantras
An articulation of the ―heart and soul‖ of the brand
similar to ―brand essence‖ or ―core brand promise‖
Short three- to five-word phrases that capture the irrefutable essence or spirit of
the brand positioning and brand values
Considerations
Communicate
Simplify
Inspire
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Designing the Brand Mantra
The term brand functions describes the nature of the product or service or
the type of experiences or benefits the brand provides.
The descriptive modifier further clarifies its nature.
The emotional modifier provides another qualifier—how exactly does the
brand provide benefits, and in what way?
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Designing the Brand Mantra
Emotional
Modifier
Descriptive
Modifier
Brand
Functions
NikeAuthentic Athletic Performance
DisneyFun Family Entertainment
Fun Folks Food
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Internal Branding
Members of the organization are properly aligned with the brand and what it
represents.
Crucial for service companies
Example : Microsoft ―B – Testing‖ – Dog Food
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Brand Audit
Externally, consumer-focused assessment
A comprehensive examination of a brand involving activities to assess the
health of the brand, uncover its sources of equity, and suggest ways to improve
and leverage that equity
It includes brand vision, mission, promise, values, position, personality, and
performance
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Brand Inventory
A current comprehensive profile of how all the products and services sold by
a company are branded and marketed:
Brand elements
Supporting marketing programs
Profile of competitive brands
POPs and PODs
Brand mantra
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Brand Inventory (Cont.)
Suggests the bases for positioning the brand
Offers insights to how brand equity may be better managed
Assesses consistency in message among activities, brand extensions, and sub-
brands in order to avoid redundancies, overlaps, and consumer confusion
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Brand Exploratory
Provides detailed information as to how consumers perceive the brand:
Awareness
Favorability
Uniqueness of associations
Helps identify sources of customer-based brand equity
Uncovers knowledge structures for the core brand as well as its competitors
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Suggested Brand Audit Outline
Brand audit objectives, scope, and approach
Background about the brand (self-analysis)
Background about the industries
Consumer analysis (trends, motivation, perceptions, needs, segmentation, behavior)
Brand inventory
Elements, current marketing programs, POPs, PODs
Branding strategies (extensions, sub-brands, etc.)
Brand portfolio analysis
Competitors‘ brand inventory
Strengths and weaknesses
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Brand Audit Outline (Cont.)
Brand exploratory
Brand associations
Brand positioning analysis
Consumer perceptions analysis (vs. competition)
Summary of competitor analysis
SWOT analysis
Brand equity evaluation
Strategic brand management recommendations
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CHOOSING BRAND ELEMENTS TO BUILD
BRAND EQUITY
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Criteria for Choosing Brand Elements
Memorability
Meaningfulness
Likability
Transferability
Adaptability
Protectability
Marketer’s offensive strategy
and build brand equity
Defensive role for leveraging
and maintaining brand equity
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Memorability
Brand elements should inherently be memorable and attention-getting, and
therefore facilitate recall or recognition.
For example, a brand of propane gas cylinders named Blue Rhino featuring
a powder-blue animal mascot with a distinctive yellow flame is likely to
stick in the minds of consumers.
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Meaningfulness
Brand elements may take on all kinds of meaning, with either descriptive or
persuasive content.
Two particularly important criteria
General information about the nature of the product category
Specific information about particular attributes and benefits of the brand
The first dimension is an important determinant of brand awareness and
salience; the second, of brand image and positioning.
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Likability
Do customers find the brand element aesthetically appealing?
Descriptive and persuasive elements reduce the burden on marketing
communications to build awareness.
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Transferability
How useful is the brand element for line or category extensions?
To what extent does the brand element add to brand equity across
geographic boundaries and market segments?
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Adaptability
The more adaptable and flexible the brand element, the easier it is to
update it to changes in consumer values and opinions.
For example, logos and characters can be given a new look or a new
design to make them appear more modern and relevant.
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Protectability
Marketers should:
1. Choose brand elements that can be legally protected internationally.
2. Formally register chosen brand elements with the appropriate legal
bodies.
3. Vigorously defend trademarks from unauthorized competitive
infringement.
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Tactics for Brand Elements
A variety of brand elements can be chosen that inherently enhance brand
awareness or facilitate the formation of strong, favorable, and unique brand
associations.
Brand names
URLs
Logos and symbols
Characters
Slogans
Packaging
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Brand Names
Like any brand element, brand names must be chosen with the six
general criteria of Memorability, meaningfulness, likability, transferability,
adaptability, and Protectability in mind.
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Brand Naming Guidelines
Brand awareness
Simplicity and ease of pronunciation and spelling
Familiarity and meaningfulness
Differentiated, distinctive, and uniqueness
Brand associations
The explicit and implicit meanings consumers extract from it are
important. In particular, the brand name can reinforce an important
attribute or benefit association that makes up its product positioning.
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Brand Laddering Technique
How to brand a Mineral water?
Brand Name
Tagline
Innovative Consume Touchpoints
Media Planning
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URLs
URLs (uniform resource locators) specify locations of pages on the web and are
also commonly referred to as domain names.
A company can either sue the current owner of the URL for copyright
infringement, buy the name from the current owner, or register all conceivable
variations of its brand as domain names ahead of time.
www.aisapaisa.com
Snapdeal
www.writeuri10story.com
www.justdial.com
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http://www.bestindiansites.com/ 2/12/201310
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Website details
www.cricbuzz.com
www.cricinfo.com
www.makemytrip.com
www.justdial.com
www.santabanta.com
www.naukri.com
www.makaan.com
www.magicbricks.com
www.indiancarrental.com/
www.savaari.com/
www.cardekho.com/usedCars
www.carwale.com/
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Logos and Symbols
Play a critical role in building brand equity and especially brand awareness
Logos range from corporate names or trademarks (word marks with text
only) written in a distinctive form, to entirely abstract designs that may be
completely unrelated to the word mark, corporate name, or corporate
activities
IBM Corporation has a logo because the design is based on a letterform,
whereas Apple Corporation has a symbol because the design is based on a
pictorial image of an apple.
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Difference between a Logo & a Symbol
Logo is the short version of logotype. It is the name of a business designed
specifically for that company.IBM, written in blue stripes, is a logo. A
symbol is just that. A symbol (but not the name of the company) that
represents that company. The apple with the piece out of it is a symbol of
Apple computers.
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Characters
A special type of brand symbol—one that takes on human or real-life
characteristics
Amul Girl
Parle G
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Slogans
Slogans are short phrases that communicate descriptive or persuasive
information about the brand.
Slogans are powerful branding devices because, like brand names, they are
an extremely efficient, shorthand means to build brand equity
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Jingles
Jingles are musical messages written around the brand. Typically
composed by professional songwriters, they often have enough catchy
hooks and choruses to become almost permanently registered in the minds
of listeners—sometimes whether they want them to or not!
Jingles are perhaps most valuable in enhancing brand awareness.
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Packaging
From the perspective of both the firm and consumers, packaging must
achieve a number of objectives:
Identify the brand
Convey descriptive and persuasive information
Facilitate product transportation and protection
Assist at-home storage
Aid product consumption
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To be continued…
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