Brand value and postioning Brand equity The sources of brand equity typically are either financial, brand

extensions or consumer-based perceptions. Identifying and measuring brand equity allows for better income and cash flows or converting the brand equity into goodwill. Goodwill is an asset that a company reports on its balance sheet, often when purchasing another business. Financial sources of brand equity attempt to determine a product's price premium over other products. For example, a consumer might prefer to purchase a name-brand electronic item. Even though this item costs more money than an acceptable generic product, brand equity indicates that a consumer will pay the higher price for the name-brand product. This equity comes from the business ability to promote its products over others in the market. Measuring brand equity often comes from looking at the money spent to achieve these consumer purchases. Brand extensions are other sources of brand equity. To achieve this type of brand equity, a company usually must establish a financial brand equity source. After a company establishes financial brand equity, it can use brand extensions when placing new products into the market. For example, a company that sells hair dryers and experiences financial brand equity might also want to begin selling curling irons. Brand extension equity indicates that the curling irons should sell as well as the hair dryers because of the companys brand equity. Consumer-based sources of brand equity are the final category. This brand equity type is often the hardest one to measure appropriately. Consumers might have feelings, beliefs or other intangible attitudes toward a product. No matter what products are available, consumers will often tend to purchase a specific brand. Strong brand equity often leads to brand loyalty, which means that a company will purchase just about any good from a certain company.

Different types of brand equity are often present in the market. These include single-product brand equity, multiple products from a single company, multiple product brands or products under different names from the same company. Companies must often identify which brand equity types affect their products. Steps must also exist for a company to protect its brand equity. These measures prevent other companies from stealing brand equity or attempting to woo away a companys customers.
BRAND BUILDING

Branding consists of the name, symbol, term, sign, design or any combination of these that identify the goods and services of your company and differentiate you from another. Branding is the visual voice of your company. You should really be consistent in all forms of media to have a solid, recognizable voice. Any visual representation of your company should in some way convey the branding of your company. Not to say everything should be a carbon copy of the other elements. A photograph should be able to convey an image in the same voice as an art element. For example, a Target commercial presents itself in such a way that you can tell its a Target commercial before you even see the logo. The choice of music, the style of the footage shot, the cadence of the editingsomething just feels like Target even before you know it is. This goes much further than a trademark or a logo. It is a continuous message, image or feeling that carries through everything that comes from your company. To build a brand you must determine what youre trying to convey and to whom it is intended. It may be a lifestyle, emotion or status. The key is to check everything against the message of the brand. This allows a lot of freedom in design styles as long as it supports the message of the brand.

The goal is to differentiate and to create a unique brand. The challenge is to hold that together in a unifying voice

Brand-Building Implications
1. Brand building drastically reduce marketing investmentA strong brand needs lower and lower levels of incremental investment to sustain itself over time. A new, unknown player will have to spend tow or four times the market leader to achieve the same share of mind. Given the huge difference in business volumes, the pressure of the bottom line is much higher for an un-established player. 2. Brand building facilitates long range planningAsk any business manager at Hindustan Liver (HLL), Nestle or even home grown organisation like Wipro, Hero Cycle, or TVS Group. In an average year his ability to target and budget primary sales would be infinitely simpler than for someone responsible for a relatively unestablished brand. The latter gentlemen would be targeting merely on desired volumes-almost always dictated by top management. Strong brand always account for more stable businesses. 3. Brand Building commands a premiumAs long as there is a distinct value attach to your offering, the consumer will always be willing to pay more for it. That is the only reason why an unknown brand called Titan could command substantial premium over HMT. That is the same reason why a brand like BPL at a higher cost beat the stuffing out of companies like Akai in a T.V. wars last years. 4. Brand Building builds entry barrierHuman being as a species love status quo. Therefore, a brand, which is entrenched in the consumers mind, is very difficult to displace. If for nothing else, the sheer inertia will override any cooing and wooing noises that the new entrant would create. This consequently implies stability of business and therefore stability of revenue. 5. Brand Building increases cash flow efficiencyToday, an HLL distributor leaves signed cheque-books with the company to be filled in on material dispatch. This is for most brands with strong franchises even if they be in the agarbatties or Hawai chappal businesses. What more can a small business ask for? 6. Brand Building increases value of the businessExamples abound internationally and today even in India of businesses, which were sold for several time their book value. Phillip Morris bought Kraft from General Force in 1991 for US $13 billion. More than its book value. A little later at home, Coca-Cola paid US $60 M to aquire

Thumps-up from Parles. Neither Buyer had any lacunae in manufacturing, finance or human resources. They merely bought business with very powerful brand equities and therefore paid more than the net worth of the businesses

Brand positio means positioning refers to target consumers reason to buy your brand in preference to others. It is ensures that all brand activity has a common aim; is guided, directed and delivered by the brands benefits/reasons to buy; and it focusses at all points of contact with the consumer. Brand positioning must make sure that:

Is it unique/distinctive vs. competitors ? Is it significant and encouraging to the niche market ? Is it appropriate to all major geographic markets and businesses ? Is the proposition validated with unique, appropriate and original products ? Is it sustainable - can it be delivered constantly across all points of contact with the consumer ? Is it helpful for organization to achieve its financial goals ? Is it able to support and boost up the organization ?

ning

In order to create a distinctive place in the market, a niche market has to be carefully chosen and a differential advantage must be created in their mind. Brand positioning is a medium through which an organization can portray its customers what it wants to achieve for them and what it wants to mean to them. Brand positioning forms customers views and opinions. Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customers mind. For instance-Kotak Mahindra positions itself in the customers mind as one entity- Kotak - which can provide customized and one-stop solution for all their financial services needs. It has an unaided top of mind recall. It intends to stay with the proposition of Think Investments, Think Kotak. The positioning you choose for your brand will be influenced by the competitive stance you want to adopt. Brand Positioning involves identifying and determining points of similarity and difference to ascertain the right brand identity and to create a proper brand image. Brand Positioning is the key of marketing strategy. A strong brand positioning directs marketing strategy by explaining the brand details, the uniqueness of brand and its similarity with the competitive brands, as well as the reasons for buying and using that specific brand. Positioning is the base for developing and increasing the required knowledge and perceptions of the customers. It is the single feature that sets your service apart from your competitors. For instance- Kingfisher stands for youth and excitement. It represents brand in full flight. There are various positioning errors, such as1. Under positioning- This is a scenario in which the customers have a blurred and unclear idea of the brand. 2. Over positioning- This is a scenario in which the customers have too limited a awareness of the brand. 3. Confused positioning- This is a scenario in which the customers have a confused opinion of the brand. 4. Double Positioning- This is a scenario in which customers do not accept the claims of a brand We spend days sometimes weeks developing our "marketing message." Examining and experimenting with taglines and logos. It's also not unlikely to spend hours of overtime determining our company colors before we set out to launch. There is however an area that is almost always forgotten in the planning phase of a new company or the restructuring of an old company. That area is training staff to understand and reflect our message and brand. Truth is marketing starts from the inside out. Do your employees believe in your product and the services that you offer? Are they standing 100% behind you in the mission of your brand? Are they living your brand? It is important that your employees are informed and involved in new

initiatives and strategies that are taking place within your company. If your staff is unable or unwilling to support your marketing efforts it can have detrimental results. How can you begin your internal branding campaign within your company?

Step 1: Synchronize Your Brand Personality, Values and Corporate Culture Your marketing team should be working closely with your Human Resources team to ensure that the common values of your company internally and externally are in sync. Step 2: Get Your Employees Behind Your Brand Align your criteria for recruiting and rewarding employees with the criteria of the brand value. Look for the right skills and aptitudes that will represent your brand promise effectively. Step 3: Reinforce and Repeatedly Explain Brand Values and Behaviors Use your internal communication to reinforce and explain the values and behaviors that reflect your brand promise. Continuously do this until they become second nature.

If you thought the process of involving your staff was not important take into account that your employees meet, greet, and assist your customers in many different ways. They are the face of your brand. Engage your staff right from the start and encourage individual input. Use your staff as a focus group - after all who knows your clientele better than they do? By doing this you will not only get support from your staff but you will be given insight and ideas that you otherwise may not have considered