session 16 branding

8/9/2019 Session 16 Branding

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Main Tasks in Managing BrandsSelecting brand name and logo,

Giving the product an identity and enhancing its visualrecognition.

Differentiation: Investing the brand with the attributesnecessary to compete.

Positioning the brand: Developing the right valueproposition and lodging it as the best choice for the target

customer.Providing the right distribution and promotion support, intune with the brands positioning.


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Keeping the brand live and Strengthening the brand

portfolio through acquisition/takeover.

Monitoring the brand through the various stages of its

life cycle.

Brand portfolio rationalization / restructure.

Understanding brand equity and building the equity of

brands.


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SELECTING BRAND NAME

A Good brand name will be

distinctive;

easy to pronounce,

recognise and remember;

may denote something about the nature / function of the product,

also be appealing.

Example: Good

Knight, Banish, Hit, Complan, Quick fix, Boost,Milkmaid, Cherry Blossom


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NAMES COMMUNICATING FUNCTIONS /ATTRIBUTES OF THE PRODUCT

Good Knight Offers a good nights sleep

Boost energy booster drink

Aqua guard protected water

Fair & Lovely Fair & Lovely Skin

Srichakra - TVS Tyre

ShineX - Instant Polish

Walkman - First portable stereo


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NAMESWHICH COMMUNICATING THE SPECIALITY OF

THE PRODUCT

Communicate the speciality of the product through the chosen name

GMs Opel

Fords Ikon

Mitsubishis Lancer

Suzukis Zen


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USE OF ACRONYMS AS BRAND

AMUL Anand Milk Union Ltd.

MRF Madras Rubber Factory


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USE OF COMPANY NAME AS BRAND

BATA

CADB

URYS

SAMSUNG

PHILIPS

SONY

VIDEOCON


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SELECTING THE LOGO

Logo for visual identification.

Logo enhances recognition by the provision of a symbol of

identity.

Logo is pictorial symbol.

Examples for Logos : Flags, Mascots, Pictures, graphic

design, splash of colours, plain alphabets are all used as

logo.

Logo and the brand becomes inseparable overtime.


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Some well known LOGOs

Air Indias Maharaja

Kelvinators PenguinAsian Paints Gattu

Onidas Devil


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Dos & Donts in selection of LOGO

Logo should fulfill the requirements of media suitability.

Flexibility to accommodate national / global and business-to-

business marketing contexts.Memory value of the logo.

Very choosy about the features to be incorporated in the logo.

Design must aid memorability.

Uniqueness for better identification and response


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Changing the LOGO

EICHER head of a horse for over three decades.

When Eicher diversified into many unrelated fields the new logoshowed the movement of a galloping horse.


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Branding Name, Logo and Slogan

Brand Name Logo Slogan

Onida The green-eyed devil Neighbours envy owners pride MRF radial The man with steel muscles Indias answer to world-class car


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Options is Branding

To adopt :

individual brand names for each individual product.

family brand name/umbrella brand name for all products.

company name as the brand name.

Branding by middle men / distribution houses i.e. store brand.


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Individual brand names

Each product of the company is given an independent brand name.

Examples :

Dove, Lux, Pears, Lifebuoy, Liril, Hamam

Surf, Rin, WheelClose up, Pepsodent


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Family brand name / umbrella brand name

AMUL Amul milk powder, Amul butter, Amul ghee, Amul

Chocolates, Amul Icecream

VIJAY Vijay Electricals, Vijay Mixie grinders, Vijay electric irons,

Vijay electric kettlesVIDEOCON Videocon TVs, Videocon refrigerators, Videocon

washing machines

GODREJ Godrej Locks, Godrej Steel almirahs, Godrej Office

furniture, Godrej electronic typewriter, Godrej air conditioners


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Benefits of Family brand name/umbrella brand name

Promotion of such products becomes easier and less expensive

under a family brand.


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Company name as brand name

BAJAJ

GODREJ

PHILIPS

CADBURYS

JOHNSON & JOHNSON


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Middlemans Brand / Store brands / private labels

Small Manufacturers who do not possess the financial

and management resources for building brands anddoing marketing and promotion on their own, such

manufactures let their products for branding by the

distributors/retail chains such brands are called

middlemans brand.Example : SPENCERS Bread, Food world


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Brand Extension

1. Extending to other items in the same product line. (Line Extension)

Examples:

Colgate Gel

Colgate Calciguard

Colgate Total

Colgate Herbal

Sunrise Premium

Sunrise Extra Coffee

SurfUltra

Surf Excel

Surf international


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Brand Extension

2. Extending brand name to products in a related line.

Example:

Maggi Noodles

Maggi Ketch up

Maggi Soup

Dettol antiseptic soap

Dettol Plaster

Dettol Hand wash


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Brand Extension

3. Extending brand name to products in a Unrelated line.

Example:

Enfield motorcycles

Enfield Gensets

LG Electrical appliances

LG Soap

LG powder


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Requirements for success of Brand Extension

1. Consistency Factor:

Consistency between parent and extension product.

Look at the example below:

Ponds Talcum powder parent

Ponds Toothpaste Extension

This Extension will suffer in the market because of inconsistency.

2. Brands Area of Expertise:

Consumers find the extension credible.3. Benefit Transfer:

5-star ice cream, 5-star chocolate


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BRAND REJUVENATION

Adding value to an existing brand by improving product attributesand enhancing its overall appeal.

Intended to re-focus the attention of consumers on an existing

brand.

Examples:New Vicks Vaporub

New Bournvita

New Nescafe

New Burnol

New HorlicksAmruthanjan Extra Strong,

Super Rin etc.

New shapes, New pack sizes, New containers, new colours, new flavours


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BRAND RELAUNCH

Some Brands fail to take off and some other face decline;

so the firms do not want to give up

usually like to give the brand one more trial;

some improvements/changes are incorporated

and the brands are relaunched with the support of a new

campaign.

Examples:

Santoor New SantoorGodrej Marvel launched in 1986 and relaunched in 1990

Close up launched in 1970s and relaunched in1989


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BRAND PROLIFERATION

Several Brands in the same product or product category.

Helps expand the market as well as the companys market share

in the category.Increases the companys power, by offering variety.


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DISADVANTAGES OF BRAND PROLIFERATION

Several Brands in the same product line with an amount of parity

among them, the danger of cannibalization is high; the share of

individual brands can come down.Several Brands may not guarantee proportionate returns;

nurturing just a few brands to a highly profitable level often

proves to be a wiser option.


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BRAND DEVELOPMENT THROUGH ACQUISTION/TAKEOVER

Companies in high competition and compulsions of growth often

do not have enough time, so they find takeover/ acquire / buyout

on going brands as an easy way out.Examples:

Pepsi acquire Duke, Mangola

Godrej acquires Good Knight

Reliance Life Insurance acquire AMP Sanmar


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BRAND PORTFOLIO RATIONALISATION /

RESTRUCTURING

Firm recognizes that it has too many brands and the product

lines, which dissipate its resources and effort.

The firm decides to cut short the product line and prune its brand

portfolio by eliminating some of the brands.

Example :

Procter & Gamble

Dabur


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PROCTER & GAMBLE

New strategy is to focus on a few successful global brands like

Pantene and Head & Shoulders in hair care

Ariel in laundryVicks in health care

Procter & Gamble dropped few brands, it has also been cutting

brand variants and line extensions.

Procter & Gamble decided to sellout/drop some of its brands.


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DABUR

Pruning its brand portfolio consisting of around 30 brands over

different product lines.

Dabur finally decided to stay with three product lines foods,

personal care and health care. And 12 to 15 brands.Other brands offered for sale.

Chosen Brands are : Chyawanaparash, Hajmola, Pudin Hara,

Hingoli, Restora, Amla Hair Oil, Vatika, Anmol coconut oil, Real

Fruit Juice

Dabur is also spending huge advertisement for the selected

brands.


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BRAND EQUITY

Set of brand assets and liabilities that is linked to a brand.

Brand equity is the net result of all the investment and effort that

a marketer put into building a brand.Usership of the brand, consumer loyalty towards product,

perceived quality, positive symbols, favourable associations

around the brand a bundle of all these attributes together result

in brand equity.


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MEASURING BRAND EQUITY METHODS

Brand earnings multiple approach : Research agency, involves

determination of brand strength score, assessment of brand

earnings multiple and charging adequate return on capital.

Royalty based approach : estimates the amount of royalty income

that could be generate if the subject brand were leased by an

independent third party.

Profit split approach : estimate the amount of profit that could be

split between the brand and other intangible assets.


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MANAGING BRANDS

HLL Locates Positioning Opportunities:

HLL Hires Brands to Capture New Opportunities:

Example : Dettol Antiseptic SoapHLL hire the Savlon from Johnson & Johnson to meet the customers of

health consciousness segmented customers.

Cautious in creating new brands:

New brand to succeed in a competitive market, it should be either be

superior to all existing offerings or it should represent a new positioningaltogether.

Every Brand must be viable in its own right:

Determining number of Brands, Extensions, Variants and Pack

Sizes:


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MANAGING BRANDS

Enriching the Brand: Product Up gradation

Brand Strategy in Diversification context:

Acquisitions, Mergers and consolidation. They were part of expansion and

diversification programmes.

Umbrella Brands to cover the Entire Category:

Example: 3 Roses, Red Label, Tajmahal have been brought under Brooke

Bond


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BRAND RATIONALISATIONHLL Keeps 30 power brands, plays down 80 others :

30 Brands contribute 75% of HLL turnover and profits.

80-odd Brands - 25% of HLL turnover and profit fall under three

categories:

Regional Jewels: Hamam Tamilnadu

Brands, which are small and unprofitable Close-up, Aim toothpaste

Brands with overlapping positioning Breeze and Jai are

overlapped.


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30 Brands of HLL

Lifebuoy ,Lux, Liril, Dove, Breeze, Pears, Fair & Lovely, Rin, Clinic,

Axe, Rexona, Red label, Brooke Bond A-1 , Lipton Taaza, 3 Roses,

Tajmahal, Wheel, Comfort, Surf, Close-up, Pepsodent, Sunsilk, Bru,

Kissan, Kissan Annapurna, KwalityWalls, Ponds, Lakme, Elle 18

session 16 branding

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