Brand Management

Prof. A. K.
Biswas 1
Thought for the day
 Choice 3: Choose Service over Self-
Interest.
 Me-first rarely delivers the desired
outcome. Whenever we equate happiness
with self-indulgence, we develop a
chronic egocentricity.
 Service is about creating a better world.
 Service focuses on responsibilities vs.
right.
 Service is about bringing out the best in
others.
Prof. A. K. Biswas 2
FRAMEWORK OF
MARKETING
Understanding
Understanding
Market Opportunities Competitor and
Company
Understanding Capabilities
Customer Value &
Segmenting Customers Understandin
g
Understanding Competitor
Market Capabilities
Understanding Understandin
Marketing g
Environment Company
Capabilities
Selecting
Market
Segment
FRAMEWORK OF
MARKETING
Developing Competitive
Marketing Strategy
Developing
Value Proposition,
Positioning Strategy
Developing
Market Offering:
Product & Price
Communicating
Market Offering
PRODUCT MANAGEMENT
Developing and Positioning

New Products.
Managing product through its
life cycle.
Building and managing brands.
Agenda
 What is a Brand?
 Brand Identity or Association
 Brand Awareness
 Brand Positioning
 Brand Loyalty
 Brand Equity
 #
Agenda
 Functions of the Brand for the
Consumer
 Advantages of the Brand for the
Company
 Building the Brand
 Role of Advertising in Building Brand
 Brand Portfolio
 Managing Brand Portfolio
WHAT IS A BRAND?
American Management Association

defines brand as follows:
“A brand is a name, term, sign,
symbol, or design, or a
combination of them, intended to
identify the goods and services of
one seller or group of sellers and
to differentiate them from those of
the competitors.”
WHAT IS A BRAND?
 A brand is a set of mental associations,
held by the consumer, which add to the
perceived value of the product or
service.
 These associations should be unique
(exclusivity), strong (salient), and
positive (desirable).
 Strong brands have an intense
emotional component.
WHAT IS A BRAND?
 Brands have financial value as
customers are willing to pay more,
because of the beliefs and bonds that
are created over time in their minds
and hearts through the marketing of
the brand.
 A brand is not born but made. A brand
name reaches the status of a brand,
when the name influences buyers, by
evoking desirable associations such as
saliency, differentiability, intensity,
and trust.
WHAT IS A BRAND?
 What makes a name acquire

the power of a brand is the
product or service, together
with people at points of
contact with the market, the
price, the places, the
communication – all the
sources of cumulative brand
experience. Prof. A. K. Biswas 13
BRAND IDENTITY OR
ASSOCIATION
 The brand is not a product but
it gives the product meaning
and defines its identity.
 Identity is anything that is
directly or indirectly linked or
associated in memory to a
brand.
BRAND IDENTITY OR
ASSOCIATION
One of the most important identity
of the brand is through the
appearance of the brand
(physique) in terms of chosen
name, colours, logo, and
packaging. Ex., Kodak’s yellow.
The most common association is
that of product attributes or
customer benefits. Colgate
represents clean, white teeth, and
Close-Up generates fresh breath. 15
Prof. A. K. Biswas
BRAND IDENTITY OR
ASSOCIATION
The brand may represent some
culture – background and values.
Mercedes personifies German values,
Nike celebrates the virtues of
individualism.
The brand can project certain
personality. This is the character of
the brand. IBM’s personality is
seriously professional, while Apple’s
is young and creative.
BRAND IDENTITY OR
ASSOCIATION
 The brand may project how it seeks to
relate to the customer. An aspirational
brand like Arrow invites you to join an
exclusive class.
 The brand may reflect the image of
the target audiences in the brand’s
communications, e.g. Coca-cola
reflects young people in its ads, even
though the actual market is much
wider.
BRAND IDENTITY OR
ASSOCIATION
 The brand makes customer see

herself or himself (self-image)
in relation to the brand.
 Even if they do not practice
any sports, Lacoste clients
inwardly picture themselves as
members of a sports club.
LACOSTE IDENTITY PRISM
Quality shirt Picture of Sender
Tennis
Golf Discrete
Sportswear Without fancy
Physique Personality
Social Individualism
conformity Aristocratic
and Relationship LACOSTE Culture ideals
distinction Classicism
Customers’ Customers’
Reflection Self projection
Neither hyperfeminine
nor hypermasculine Belonging to a club
Picture of Recipient
BRAND IDENTITY OR
ASSOCIATION
A brand’s associations are
assets that can differentiate,
provide reasons to buy, instil
confidence and trust, affect
feelings towards a product and
the use experience, and
provide the basis for brand
extension.
BRAND IDENTITY OR
ASSOCIATION
 A key step in creating a brand is to
determine the brand’s identity or
vision – the associations that the brand
aspires to represent.
 The process of creating a brand
identity or vision can provide a good
framework for making business
strategy decisions.
BRAND AWARENESS
Having created the brand
identity, the awareness and
presence of the brand is to be
built economically and
efficiently.
Brand awareness has several
benefits:
First, awareness provides the
brand with a sense of familiarity,
and people like the familiar.
BRAND AWARENESS
Second, name awareness can

be a signal of presence,
commitment, and substance.
The logic is that if a name is
recognised, there must be a
reason.
Third, the salience of a brand
will determine if it is recalled
at a key time in the
purchasingProf.
process.
A. K. Biswas 23
BRAND POSITIONING
 Positioning a brand means
emphasizing the distinctive
characteristics that make it
different from its competitors
and appealing to public.
 It results from an analytical
process based on the following
questions:
BRAND POSITIONING
 A brand for what? This refers to brand
promise and consumer benefit aspect.
 A brand for whom? This refers to the
target aspect.
 A brand for when? This refers to the
occasion when the brand will be
consumed.
 A brand against whom? This question
defines the main competitors.
BRAND POSITIONING
 Brand positioning indicate what the
brand’s essential difference and
raison d’etre is in comparison with
other products and brands of that
category.
 The aim of positioning is to identify
and take possession of a strong
purchasing rationale that gives us a
real or perceived advantage.
BRAND POSITIONING AND
BRAND IDENTITY
 However, positioning does not
does not reveal all the brand’s
richness of meaning nor reflect all
of its potential.
 Brand identity, on the other hand,
expresses brand’s tangible and
intangible characteristics – every
thing that makes the brand what it
is.
BRAND LOYALTY
After creating the brand identity

and awareness of the brand, the
next step is to create brand
loyalty.
 Brand Loyalty is concerned with
how and why customers are
willing to enter into a
relationship with a particular
company (rather than merely
conducting single
Prof. A. K. Biswas transactions28
BASIS OF BRAND LOYALTY
 The brand loyalty is based on

trust and confidence.
 This trust and confidence is
built over extended
interactions between the
customer and the
brand/supplier.
ELEMENTS OF BRAND TRUST
Probity
Competence Continuity
Brand Trust
Value
Caring
Resonance
 Competence: technical
capability to completely make
the product, or effectively
deliver the service, they are
offering. Back
 Probity: belief that the
company will conduct its
transactions with a customer
in an honest and fair way. Back
 Continuity: belief that the

company has the resources
and commitment necessary to
remain in the business area
relevant to the customer.
 This is particularly important
in relation to products which
have a long lifetime. Back
 Caring: the company’s employees
are sufficiently motivated to care
about the quality of service or
performance they deliver. Back
 Value Resonance: it is concerned
whether or not the brand/company
expresses values which the
individual consumer aspires to
incorporate in their personal life
style.
BENEFITS OF BRAND
LOYALTY
First, brand loyalty reduces the
marketing costs of doing
business, since existing
customers are relatively easier
to hold.
Second, brand loyalty represents
a substantial barrier to
competitors.
Third, brand loyalty provides
trade leverage.
BENEFITS OF BRAND
LOYALTY
Fourth, a relatively large,
satisfied customer base
provides an image of a brand
as an accepted, successful,
and enduring product.
Finally, brand loyalty provides
the time to respond to
competitive moves.
BRAND EQUITY
Building a strong brand identity,

awareness, and brand loyalty,
lead to a strong brand equity.
Brand equity is a set of assets
linked to a brand’s name and
symbol that add to the value
provided by a product or service
to a customer.
BRAND EQUITY
 Brand equity results in customers
showing a preference for one
product over another when they
are basically identical.
 The extent to which customers are
willing to pay more for the
particular brand is a measure of
brand equity.
Brand Resonance
Pyramid
4. Relationships = Intense,
What about you active
Resonance
and me loyalty
ts
Fe
en
3.Response Positive,
eli
gm
= What accessible
ng
Jud
about you? reactions
s
ce
an
Im
m Strong, favorable
ag
2. Meaning = r
fo unique brand
er
What are you? er
y
P associations
Deep, broad
1.Identity = Salience brand
Who are you?
awareness
Brand Resonance
 The creation of significant brand equity
involves reaching the top of the brand
pyramid, and will occur only if the right
building blocks are put into place.
 Brand salience relates to how often and
easily the brand is evoked under various
purchase or consumption situations.
 Brand performance relates to how the
product or service meets customer’s
functional needs.
Brand Resonance
 Brand imagery deals with the extrinsic
properties of the product or service,
including the ways in which the brand
attempts to meet customer’s
psychological or social needs.
 Brand judgments focus on customer’s own
personal opinions and evaluations.
 Brand feelings are customer’s emotional
responses and reactions with respect to
the brand.
Brand Resonance
 Brand resonance refers to the nature
of relationship that customers have
with the brand and the extent to
which customers feel that they are “in
sync” with the brand.
 Resonance is characterized in terms of
the intensity or depth of the
psychological bond customers have
with the brand, as well as the activity
engendered by this loyalty.
THE FUNCTIONS OF THE
BRAND FOR THE CONSUMER
Functio Consumer Benefit
n
Identification To be clearly seen, to quickly
identify
the sought-after products.
Practicality To allow savings of time and
energy
through identical repurchasing
and
Guarantee Toloyalty.
be sure of finding the same quality
no matter where or when you buy the
product.
Function Consumer Benefit
Optimization To be of buying the best product in its
category, the best performer for a
particular purpose.
CharacterizationTo have a confirmation of your
self
image that you present to others.
Continuity Satisfaction brought about
through
familiarity and intimacy with the
brand that you have been
consuming Prof. A. K. Biswas 43
Functio Consumer Benefit

n
Hedonistic Satisfaction linked to the attractiveness
of the brand, to its logo, to its
communication.
Ethical Satisfaction linked to the

responsible
behaviour of of the brand in its
relationship with society.
ADVANTAGES OF THE BRAND
FOR THE COMPANY
 Branding gives the company the
opportunity to attract loyal and
profitable set of customers.
 The reputation of the brand is a source
of demand and lasting attractiveness,
the image of superior quality and
added value justifies a premium price.
ADVANTAGES OF THE BRAND
FOR THE COMPANY
A dominant brand is an entry barrier
to competitors because it acts as as
a reference in its category.
If it is a prestigious or a trendsetter
in terms of style it can generate
substantial royalties by granting
licences.
Strong brands help build the
corporate image making it easier to
launch new brands and gain
acceptance by distributors and
BUILDING THE BRAND
“The art of marketing is the art
of brand building.
When something is not a brand,
it will probably viewed as a
commodity.
Then price is what counts. When
price is the only thing that
counts, the only winner is the
low-cost producer.” Philip Kotler
BUILDING THE BRAND
Choose a brand name.

Develop rich associations and
promises for the brand name.
Manage all the customers’
brand contacts so that they
meet or exceed the
customers’ expectations
associated with the brand.
BUILDING THE BRAND
A successful brand is one having a
sustainable differential advantage i.e.,
the customers have reason for
preferring that brand to competitors’
brands.
Overwhelmingly the most important
determinant of brand strength is its
perceived quality.
BUILDING THE BRAND
 Quality generates higher margins in

either or both of the ways.
 First, quality boosts market share,
which result in lower unit costs
through economies of scale.
 Second, by creating a differential
advantage, quality permits higher
relative price.
BUILDING THE BRAND
 Service is perhaps the most

sustainable differential advantage.
 While products are easily copied by
competitors, service, because it
depends on the culture of an
organization and the training and
attitude of its employees, is much more
difficult.
BUILDING THE BRAND
 The solution is, therefore, to
emphasize
 process benefits (which makes
transactions between buyers and
sellers easier, quicker, cheaper,
and more pleasant) and
 relationship benefits (which
rewards the willingness of
consumers to identify themselves
and to reveal their purchasing
behaviour).
BUILDING BOTH BUSINESS
AND BRAND
 The brand is not all: it captures
the fame but is made possible
by the business model.
 Brand and business model are
intimately intertwined.
 Dell’s high brand value has
certainly been largely
contributed by Dell’s business
model.
BUILDING BOTH BUSINESS
AND BRAND
 The goal of strategy is to build a
sustainable advantage over
competition, and brands are one
of the very few ways of achieving
this.
 The business model is another.
There are several alternative
business models: Product
Leadership, Operational
Excellence, and Customer
Intimacy. Prof. A. K. Biswas 54
ROLE OF ADVERTISING IN
BUILDING BRANDS
 First, successful advertising
accelerates the communication
process by speeding up the process
of generating awareness and
interest in the brand.
 The second function of advertising is
to position the brand’s value in a
manner which appeals to target
customers and increases confidence
in the choice process.
BRAND PORTFOLIO
 The brand portfolio includes all
the brands managed by the
organization.
 A corporate brand is a brand that
represents the corporation – or,
more generally, an organization –
and reflects its heritage, values,
culture, people, and strategy.
BRAND PORTFOLIO
 A master (or parent) brand is
the primary indicator of the
offering, the point of reference.
 GE is a master brand under
which company sells
refrigerators, aircraft engines,
and variety of other goods.
 Crest is a master brand that
defines a line of dental
products from P&G.
BRAND PORTFOLIO
 The subbrands are brands that
modifies a master brand (which
remains the primary frame of
reference) by adding to or
changing its associations (such as
an attribute, a benefit, or
personality).
 Example, Pepsi Twist, Pepsi Blue,
Sony Walkman, Toyota Corolla.
BRAND PORTFOLIO
 An umbrella brand defines a grouping of
product offerings (Microsoft Office Word,
Microsoft Office Excel, etc.) under one
common brand (Microsoft Office).
 A cash cow brand is a brand that may be
stagnant or slowly declining, but there is
a hardcore loyal customer base that is
unlikely to leave the brand. The brand
does not require much investment.
Example, Sony Walkman.
BRAND PORTFOLIO:
CO-BRANDS
Co-branding occurs when two
different companies pair their
respective brands in a
collaborative marketing effort.
Each brand sponsor expects
that other brand name will
strengthen brand preference
or purchase intention.
BRAND PORTFOLIO
Product Category
Existing New
Brand Name
Existing Line Extension Brand Extension
New Multi-Brand New Brand
Brand Portfolio:
Line Extension
Line extensions occurs when a
company introduces additional
items in the same product
category under the same
brand name, usually with new
flavours, forms, colours, added
ingredients, package sizes,
and so on.
E.g., Colgate Herbal, Colgate
Brand Portfolio:
Brand Extension
Brand extension occurs when a

company decides to use an
existing brand name to launch
a product in the new category.
E.g., Dettol, Dettol Soap.
BRAND PORTFOLIO:
BRAND/LINE EXTENSION
Brand/Line extension offers a

number of advantages.
Instant recognition and earlier
acceptance
Saves considerable
advertisement costs
BRAND PORTFOLIO:
BRAND /LINE EXTENSION
Brand/Line extension also
involves risks.
The new product might
disappoint buyers and damage
their respect for company’s
other products.
The brand name may lose its
special positioning in the
consumer’s mind through over
extension - a phenomenon
called “brand dilution”.
BRAND PORTFOLIO:
MULTIBRANDS
A company will often introduce
additional brands in the same
product category.
One of the motives for multi
branding is to establish different
features and/or appeal to different
buying motives.
It also enables the company to
lock up more distributor shelf
space and protect its major brand
by setting up flanker brands.
BRAND PORTFOLIO:
FLANKER BRANDS
 If a brand is attacked by a competitor
with a value offer or unique position,
any response can risk its image and
brand equity.
 The solution is to use a flanker or
fighting brand to fight a competitor,
thereby insulating the original brand
from the fray.
BRAND PORTFOLIO:
FLANKER BRANDS
 For example, when Pepsi launched
a clear cola, Coke came out with a
flanker brand, Tab Clear, which
positioned the new sub-category as
having inferior taste.
 Philip Morris introduced a discount
brand of cigarettes, Basic, as a no-
frills flanker brand designed to
protect Marlboro and preserve its
premium price position.
RATIONALIZING BRAND
PORTFOLIO
 A brand needs to gain and

maintain relevance, or no amount
of differentiation or loyalty will
matter.
 Relevance means that the brand
will be considered for a product
category or sub-category and that
the product category or sub-
category will be needed.
RATIONALIZING BRAND
PORTFOLIO
 To become considered, a brand must
have both sufficient visibility and
performance credibility.
 Toyota Corolla and Chevrolet Prism
were for many years made to the
same design by the same factory.
 The Prism, until it was discontinued,
was discounted more and still had
sales less than one-fourth of Corolla,
because a perceived quality gap had
precipitated a relevance problem.
RATIONALIZING BRAND
PORTFOLIO
 It may, therefore, be wise to invest
in building the fewest number of
the strongest brands needed to
cover and compete in all the
desired markets.
 Resist adding new brands that are
not needed, and be disciplined
about removing existing brands
from the portfolio if they are not
needed.
RATIONALIZING BRAND
PORTFOLIO
 Of its 250 brands, P&G’s top ten
brands account for half of its sales,
and more than half of its profits.
 The bottom 1200 brands in
Unilever’s 1600 brand portfolio
accounted for only 8% of the
company’s total sales in 1999.
 The vast majority of Nestle’s profits
come from a tiny percentage of
more than 8000 brands worldwide.
RATIONALIZING BRAND
PORTFOLIO
 Managing mammoth multi-brand
portfolios, especially within the
same product category, presents
following major problems.
 Insufficient differentiation
 Inefficiency
 Lower market power
 Management complexity
RATIONALIZING BRAND
PORTFOLIO
 An effective brand rationalization
process has four essential steps:
 Conduct a brand portfolio audit
 Determine the optimal brand portfolio
 Select appropriate brand deletion
strategies
 Develop a growth strategy for the
surviving brands
Brand Portfolio Audit
Market Regional Presence
Brand
Share RegionRegionRegionRegionRegionRegion
(%) 1 2 3 4 5 6
A S
Fun
W
B Value
C
D
F
Top half of the box: Market positionBottom half of the box: Brand positioning
D = Dominant (#1 in the region) Quality; value; upscale; fun; adventurous;
S = Strong (#2 or #3 in the region) Premium; safe; reliable; trustworthy;
W = Weak (#4 or less in the region)aggressive; cheap; etc.
NP = Not present in the region
RATIONALIZING BRAND
PORTFOLIO
 Determine the optimal brand portfolio
 Companies utilize two complementary
processes to determine optimal portfolio:
 Overall corporate portfolio approach
 Needs-based segmentation approach
 The first approach is a relatively top-down
process.
RATIONALIZING BRAND
PORTFOLIO
 It broadly evaluates the brand portfolio
using a few simple figures such as
minimum sales, market share position,
growth rate, and geographical reach.
 The needs-based segmentation approach
examines the number and types of need-
based segments that exist within each
individual category in which the firm
competes.
RATIONALIZING BRAND
PORTFOLIO
 Since a company must position every
band against an unique segment of
consumers, this bottom-up process helps
manager to determine the optimal brand
portfolio in terms of individual categories
and implementation.
 The needs-based approach works well for
companies where managers want to
rationalize a group of brands that
compete in the same category.
RATIONALIZING BRAND
PORTFOLIO
 On the other hand, if companies

with hundreds of brands across
categories, want to rationalize
their entire brand portfolio at one
go, then it would be better to start
with the corporate portfolio-based
approach to determine the overall
direction and then move to the
needs-based segmentation
approach.
RATIONALIZING BRAND
PORTFOLIO
 Select appropriate brand deletion
strategies
 Companies should sell non-core brands that
will not likely become competitors but could
offer value to others.
 Companies should milk for profits those
brands that have some customer franchise
but are neither core to the firm’s direction
nor valuable to others.
RATIONALIZING BRAND
PORTFOLIO
 Companies may safely eliminate
minor brands with poor sales.
 To migrate loyal customers, a
company can issue them coupons
or samples for the most adjacent
surviving brand in the portfolio.
 Finally company can merge two
brands into one if the lesser brand
is still maintaining significant sales
in a core category.
RATIONALIZING BRAND
PORTFOLIO
 Merging, sometimes referred to as
brand transfer or brand migration,
reduces number of brands without
losing sales because marketing
migrates the associated customers
to the surviving brand.
 Depending on the competitive and
corporate pressures, companies
choose between adopting a quick
change versus a gradual brand
transfer strategy.
RATIONALIZING BRAND
PORTFOLIO
 A quick change with a new brand name
works when a firm wants to break
clearly from past.
 Example: Sandoz and Ciba-Geigy to
Novartis.
 Merged companies can quickly drop
one brand.
 Example: Swiss Banks UBS and SBS to
UBS.
 This works well when one brand is
significantly stronger than the other.
RATIONALIZING BRAND
PORTFOLIO
 If both brands have strong brand
franchises, then a firm can adopt a
gradual brand migration strategy by sub-
branding or dual branding during the
transition before eventually dropping the
weaker one.
 Example: D2 Vodafone in Germany;
Omnitel Vodafone in Italy changed to
Vodafone over a period of two years..
RATIONALIZING BRAND
PORTFOLIO
 Develop a growth strategy for the
surviving brands.
 As part of the brand deletion process,
managers must identify opportunities
to build fewer, stronger brands
through enhancements and
investments.
 Brand enhancement can be done by
migrating useful characteristics from
the deleted brands to the remaining
ones.
RATIONALIZING BRAND
PORTFOLIO
 Brand investment redirects the
resources freed from the discontinued
brands to the surviving brands.
 By merging brands, companies can
generate substantial savings through
greater economies of scale in supply
chain, sales, and marketing.
 Examples: P&G; HUL
RATIONALIZING BRAND
PORTFOLIO
 With growing retailer power and more
global customers, companies cannot
sustain weaker brands and must
embark on brand rationalization.
 Brand rationalization should be a top
management concern as in the
immediately short run, it usually
lowers firm’s revenues.
 However, at the end brand
rationalization is profitable.

Brand Management

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Brand Management

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Prof. A. K.

Developing and Positioning

American Management Association

 What makes a name acquire

 The brand makes customer see

Second, name awareness can

After creating the brand identity

 The brand loyalty is based on

 Continuity: belief that the

Building a strong brand identity,

Functio Consumer Benefit

Ethical Satisfaction linked to the

Choose a brand name.

 Quality generates higher margins in

 Service is perhaps the most

Existing Line Extension Brand Extension

New Multi-Brand New Brand

Brand extension occurs when a

Brand/Line extension offers a

 A brand needs to gain and

 On the other hand, if companies

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