Branding

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Branding
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Brand

• A brand is 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 those of competitors
• It can convey up to six levels of meaning
• Attributes (e.g., KFC Microsoft)
• Benefits (e.g., Volvo BMW)
• Values (e.g., The Body Shop Nokia)
• Culture (e.g., Ikea Coca Cola Citibank)
• Personality (e.g., Armani Versace)
• User (e.g., Reebok Nike)

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Brands. Whats in a Name ?
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Major Branding Decisions
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Four Brand Strategies
Product Category
Line Extension
Brand Extension
Existing
New
Multibrands
Existing
New Brands
Brand Name
New
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Brand Strategy

• Line Extension
• Existing brand names extended to new forms,
  sizes, and flavors of an existing product
  category.
• Brand Extension
• Existing brand names extended to new or modified
  product categories.
• Multibrands
• New brand names introduced in the same product
  category.
• New Brands
• New brand names in new product categories.

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Product Line Stretching
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Two-Way Stretch
Marriott added the Renaissance Hotels line to
serve the upper end of the market and the
TownePlace Suites line to serve the moderate and
lower ends.
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Brand Name Selection

• A brand name is rooted in a given language and,
  if used elsewhere, may have either a different
  meaning or none at all
• Ideally, marketers look for brand names that
  evoke similar emotions or images around the world
• Language problems are particularly difficult to
  overcome

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Search for A Brand Name

• An arbitrary or invented word not to be found in
  any standard English dictionary, such as Toyotas
  Lexus
• A recognizable English (or foreign-language)
  word, but one totally unrelated to the product in
  question, such as the detergent Cheer
• An English (or other language) word that merely
  suggests some characteristic or purpose of the
  product, such as Mr. Clean
• A word that is eventually descriptive of the
  product, although the word may have no meaning to
  persons unacquainted with English (or the other
  language), such as the diaper brand Pampers
• Within one or more of these categories, a
  geographical place or a common surname, such as
  Kentucky Fried Chicken
• A device, design, number, or some other element
  that is not a word or a combination of words,
  such as 3M Company

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Potential Levels ofA Brand Hierarchy

• Corporate (or company) brand
• e.g., General Motors
• Family brand
• e.g., Chevrolet
• Individual brand
• e.g., Camaro
• Modifier (designating item or model)
• e.g., Z28

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Brand Leadership

• Organizational Structure
• And Processes
• Responsibility for brand
• Strategy
• Management processes

• Brand Architecture
• Brand/subbrands/endorsed
• brands
• Roles of brands/subbrands

Brand Leadership

• Brand-Building Programs
• Accessing multiple media
• Achieving brilliance
• Integrating the communication
• Measuring the results

• Brand Identity/Position
• Aspirational Image
• Positioning of the brand

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Brand Identity

• Brand identity is a set of brand associations
  that the brand strategist aspires to create or
  maintain
• The brand identity represents what the
  organization wants the brand to stand for The
  brand image is the brands current associations
• When realized, the brand identity should help
  establish a relationship between the brand and
  the customer by generating a value proposition
  potentially involving functional, emotional, or
  self-expressive benefits or by providing
  credibility for endorsed brands

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Four Perspectives of Brand Identity

• Brand as product
• Product scope Product attributes Quality/Value
  Uses Users Country of origin
• Brand as organization
• Organization attributes Local vs. global
• Brand as person
• Personality Customer/brand relationship
• Brand as symbol
• Visual image and metaphors Brand heritage

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Brand Identity Perspectives - Symbol

• Visual Imagery
• Metaphors
• Brand Heritage

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The Brand Identity Structure

• The core identity usually has two or four
  dimensions that compactly summarize the brand
  vision
• Brand essence a single thought that captures the
  soul of the brand it can be viewed as the glue
  that holds the core identity elements together,
  or as the hub of a wheel linked to all of the
  core identity elements
• The extended identity includes all of the brand
  identity elements that are not in the core,
  organized into meaningful groupings

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Value Proposition

• Created by the brand identity
• Functional benefits
• Emotional benefits
• Relate to the ability of the brand to make the
  buyer or user of a brand feel something during
  the purchase process or use experience
• Self-expressive benefits
• The brand provides a vehicle by which a person
  proclaim a particular self image

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What The Brand Is--Functional Benefits

• VW German engineering
• BMW The ultimate driving machine
• Abbey National Bank A special kind of security
• Xerox The digital document company
• 3M Innovation
• Banana Republic Casual Luxury
• Compaq Better Answers
• Lexus Without compromise

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What The Brand Does-- Emotional and
Self-Expressive Benefits

• American Express Do more
• Pepsi The Pepsis generation
• HP Expanding possibilities
• Apple The power to be your best (or Think
  different)
• Sony Digital dream kids
• Schlumberger The passion of excellence
• Nike Excelling
• Microsoft Help people realize their potential
  (or Where doe you want to go today?)

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Virgin Brand Identity

• Brand essence Iconoclasm
• Core identity Service quality Innovation Fun
  and entertainment Value for money
• Extended identity Underdog Personality (Flaunts
  the rules Sense of humor Underdog Competent)
  Virgin Symbols (Branson and his perceived
  lifestyle Virgin blimp Virgin script logo)
• Value proposition
• Functional benefits A value offering with
  quality, plus innovative extras delivered with
  flair and humor
• Emotional benefits Pride in linking to the
  underdog with an attitude Fun, good times
• Self-expressive benefits Willingness to go
  against the establishment, to be a bit outrageous
  
• Relationship Customers as fun companions

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Creating EffectiveBrand Identity Systems
2. Link to a compelling functional
benefit whenever possible
1. Avoid a limited brand perspective
3. Ignore constructs that are not helpful
4. Generate deep consumer insight
8. Elaborate the brand identity
Creating EffectiveBrand Identity Systems
5. Understand competitors
7. Make the brand identity drive
the execution
6. Allow multiple brand identities
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Brand-Building Tasks
Create visibility
Build associations and Create differentiation
Brand Building
Develop deep Customer relationships
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Brand Relationship Spectrum

• Branded House
• Same Identity BMW Virgin
• Different Identity GE Capital/GE Appliance
• Subbrands
• Master Brand as Driver Buick DeSabre HP DeskJet
• Co-Drivers Gillette Sensor Sony Trinitron
• Endorsed Brands
• Strong Endorsement Courtyard by Marriott
• Linked Name Obsession by Calvin Klein
• Token Endorsement Universal Pictures (Sony)
  Lotus (an IBM Company)
• House of Brands
• Shadow Endorser Tide (PG) Lexus (Toyota)
• Not Connected Pantene (PG) Nutrasweet (G. D.
  Searle)

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The Virgin Business
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Brand Equity
High Brand Equity Means
High Perceived quality
High brand associations
Other brand assets
High brand loyalty
High brand awareness
Reduced marketing Costs Increased Trade leverage
Easier to make brand associations Increased liking
and familiarity
Supports Quality Positioning Supports Higher-price
strategy
Create Positive Image Helps customer process infor
mation
Patents or trademarks Strong channel relationships
Provides value to customer Assists in customer
information processing Increases confidence in
purchase Increases satisfaction in product use
Provides value to firm Increase effectiveness of
marketing programs Increases customer loyalty and
trade leverage Facilitates brand extensions Is a
source of competitive advantage
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Co-Branding

• Co-branding--also called brand bundling or brand
  alliances--occurs when two or more existing
  brands from different organizations (or
  distinctly different businesses within the same
  organization) are combined into a product and/or
  marketed together in some fashion
• An ingredient brand (Pillsbury Brownies with
  Nestle chocolate)
• An endorser (Healthy Choice cereal from
  Kelloggs)
• A composite brand with multiple master brands
  (Citibank--American Airlines Visa credit card)
• Co-branding is a classic search for synergy
• The problem is finding the right fit and solving
  the implementation problems of two organizations
  with different systems and cultures, working
  together

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Ingredient Branding

• Creating brand equity for materials, components,
  and parts that are necessarily contained within
  other branded products
• The basic motivation for using ingredient
  branding is that it enhances the differentiation
  of the host brand from competition by
  characterizing the ingredient attribute in the
  host brand more specifically
• Branded ingredients are often seen as a signal of
  quality
• Intel inside Dell Computer

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Advertising Alliances between Brands
Product Complementarity
Brand 1
Brand 2
Advertising Strategy
Kelloggs Tropicana High
Link products to usage occasion
breakfast
Blockbuster Birds Eye High
Link products to usage occasion
dinner and a movie
Tide Oshkosh
High Attribute clean
Whirpool Day Runner Low
Link products to usage occasion
in kitchen
Fruit of the Loom Dodge Ram Van Low
Attribute comfort
Dove Sheer Endurance Low
Attribute soft on skin