Brand Building Strategy For Beginners

“BUILDING A BRAND FROM SCRATCH”
Brand Building Strategy for Beginners
Prof. Rutu Mody-Kamdar

Assistant Professor in Marketing
Narsee Monjee Institute of Management Studies (Deemed University)

FOREWORD
Brand Management is an important topic in Marketing Management, both for

academicians and more so for professional practitioners in live marketing.
Branding adds great value to a product and is therefore an intrinsic aspect of
a product strategy. All management institutes have realized the importance of
this subject, and have introduced a separate course on Brand Management in
their MBA (Marketing) syllabus. Ms. Rutu Mody-Kamdar, one of our youngest
and energetic faculty members in the Marketing area, has been teaching this
subject in her MBA classes. She has extensively studied the topic and her
class students have appreciated the depth and devotion with which she has
been teaching the course.
Now she has put all her conceptual teaching material in the form of a booklet
for all those who have interest in the subject of Brand Management. This
booklet would be of special interest to students, faculty members and even
marketing practitioners. I have great pleasure in releasing this book “ Building
a Brand from Scratch: Brand Building Strategy for Beginners”, which is a
treatise on Brand Management. She has covered various dimensions of the
area like brand definition, brand positioning, brand associations, brand image
and brand identity.
NMIMS appreciates the efforts put in by her in producing this valuable

publication and hopes that she will continue to do further research in this area
in greater depth. I personally wish her all the best in her academic career with
NMIMS.
Dr N. M. Kondap
Vice Chancellor
NMIMS
Deemed University
March 7, 2005
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INTRODUCTION
Branding can be called both an art and a science. Branding is a science- A
science that seeks to peek into the minds of consumers and create offerings
that cater to their individual and aggregate needs, wants and desires.
However, this extremely ‘soft’ area of branding, is difficult to identify and
classify clearly. Consider the following:
Brands are about consumers and their minds, their extremely volatile minds.
None of us can claim to be a champion of the human mind as yet. There is
indeed no computer on earth as yet that can claim to clone the processes of
the mind and its volatile nature. The mind is still being understood.
The only reality around in our lives is change. This all about change that is an
amorphous process in the mind of the consumer. This change is seldom a
continuous trend. It is as discontinuous as it can get. There is seldom anything
predictive about the pattern of this change in the consumer mind and mood. It
is as maverick as the consumer is!
Branding, when studied from the perspective of the quantitative technique and
parameters that are empirical and scientific, is a theory that is never really
alive.
Not as alive and kicking as the consumer is! Yet, let’s look around at our
brand-centred establishments. Every corporate worth his corporate culture
and coat is into the realm of the science more than the realm of the art. Much
of the time, the hard area in branding dominates the soft.
Look at branding as an art then. As a qualitative technique! As a soft-skill
operating in a soft terrain. The soft terrain of the ever-changing human mind.
A terrain that depends on the apt and adequate understanding of the human
mind at that point of time. A skill that depends on the ability of the reader of
the mind of the consumer. A skill that centres itself on the realm of consumer
insight that is truly soft and real. Not hard and quantifiable, but soft and
somewhere there.
This soft-skill is, therefore, the essence of understanding the consumer and
the brand. And this is precisely the skill that modern corporates have shunned
for long. Consumer insight and the soft arena of reading it as precisely as
possible is the only true blue cutting edge of branding; therein lies the
advantage for corporations in future.
The case is clear then. Branding is certainly much more of an art than a
science. Get in there with your artistry. Get in there with your heart and
everything soft about you in the understanding of the consumer.
Excerpt from The Soft Art Behind The Hard Sell
Indiatimes-
Indiatimes- Business of Management
Harish Bijoor
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TOPIC INDEX
1. Chapter 1: Brands and Brand Building
2. Chapter 2: Gaining Customer Insights
3. Chapter 3: Brand Positioning
4. Chapter 4: Brand Identity
5. Chapter 5: Articulating Brand Identity
6. Chapter 6: Executing Brand Identity
7. Chapter 7: Extending Brand Identity
8. Chapter 8: Reviewing Brand Identity
9. Conclusion
10. List of References
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CHAPTER 1
BRANDS AND BRAND BUILDING
Brand
So, how does one define the oft-used word- Brand? Branding has really been
around for centuries as a means of distinguishing the goods of one producer
from the other. The word ‘brand’ is derived from the word ‘brandr’ which
means ‘to burn’, as brands were means by which owners of livestock would
mark their animals to identify them.
According to the American Marketing Association (AMA) a brand is defined as

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
differntiate them from those of competition”.
Technically speaking, this definition of brands seems sound, but it is limiting in

many ways. This definition indicates that whenever a company launches a
product and attaches a name, term, sign or symbol, it is creating a brand.
These, however, are only brand elements, being simply, only an expression of
what the brand really stands for symbolically. For example, Lux beauty soap
uses its brand name, symbols and images of young actresses to symbolize a
far deeper image of beauty, glamour and success. Hence, the name, logo,
packaging and endorsers have only been used as an expression to the
deeper, more symbolic meaning of a Lux soap.
People do not perceive the world as it is. Their internal mental image of the
world, at times, differs from the external physical world. The reality for an
individual is perceived. “The objective reality of a product matters little; what
matters is a customer’s perception of a product or a brand”. Brands are
symbols, which stand for something in a prospect’s mind. It carries a meaning
behind it. Symbols work by stimulating the cognitive process. The consumer’s
perceptual process is nothing but making sense of the symbols present
around them. Therefore, figurative aspects like the name, colours, logo and
packaging are symbols that the marketer uses to communicate their intentions
to the customers.
Slender tall bottles are used to connote feminine qualities. Colours are not
really only colours. They are used to connote certain moods and values. Red
packaging connotes warm, hot, where as blue and green packaging may
connote cold, calm, cool. Brands names are also only titles that are given to
the brand. A word is a signifier that marketers employ to facilitate
communication about brands. The word helps in identification, but moreover,
acts as a symbol.
Therefore, elements such as the name, logo, colours etc. are only the
signifiers. Signifying, at a deeper level, the intentions of the brand manager,
and symbolizing the often intangible meanings of the brand.
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Another interesting perspective of brands is that brands are the ‘human face
to the product-consumer relationship’. They create and bring humanity to the
organization. They unite people, i.e. companies, consumers and
stakeholders…brands form an emotional connect with people. Brands are
essentially about people, and therefore are living, vivid memories that people
carry in their minds.
All of us have carried living images of brands such as Raymonds, Cadbury’s,

Surf, and many other stalwart brands. The ‘complete man’ of Raymonds, or
the ‘exuberant girl running on the cricket field for Cadbury’s, or the smart
Lalitaji of Surf have all entered our lives, and have redefined our relationship
with these brands and the manner in which we use them.
Products versus Brands
A product is a physical entity that lives in the real world. A brand is a

perceptual entity that lives in the consumer’s mind. It is important to effectively
differentiate between a product and a brand. According to Philip Kotler, the
marketing Guru, a product is anything that can be offered to a market for
attention, acquisition, use, or consumption that might satisfy a need or want.
Kotler defines five levels to a product, which are as follows. The following
concept is explained using the example of airlines.
1. Core Benefit Level: is the fundamental need or want that consumers

satisfy by consuming the product or service. e.g. the basic need of
transportation is being addressed by an airline
2. Generic Product Level: is a basic version of the product containing only
those attributes or characteristics absolutely necessary for it’s
functioning but with no distinguishing feature. e.g. the airline with a
basic seating and pilot
3. Expected Product Level: is a set of attributes or characteristics that
buyers normally expect and agree to when they purchase a product.
e.g. people expect an airline with an airhostess, hot food, drinks, in-
flight entertainment and service.
4. Augmented Product Level: includes additional product attributes,
benefits, or related services that distinguish the product from
competitors. e.g. the airline may have special loyalty programs, or
special airport lounges to augment themselves.
5. Potential Product Level: includes all of the augmentations and
transformations that a product might ultimately undergo in the future.
e.g. the airline may introduce a special ‘home pick up’ facility for
passengers in the future
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Potential Product
Augmented Product
Expected Product
Generic Product
Core Benefit
Kotler also points out here that competition between products essentially
takes place at the product augmentation level, because most companies can
build satisfactory products at the expected product level. At this stage, let us
revisit the meaning of branding:
A brand is a product, but one that adds other dimensions that differentiate it in
some way from other products designed to satisfy the same need.
Hence, in accordance to the concept proposed by Kotler, brands emanate

mainly at the ‘augmented product level’, where each product tries to augment
itself beyond its basic product offering. This augmentation could be either very
large, as in the case of Mont Blanc pens, where an ordinary product like a pen
is given a larger than life status, or it could be small, as in the case of Ad Gel
Pens, where the brand is not emphasised on much, and there is no significant
augmentation in the form of branding taking place.
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Brand
Organisational
Associations
Country of
origin Product
•Scope
Brand
Emotional •Attributes Personality
Benefits
•Uses
•Quality Brand
• customer
relationships
Self
Expressive
Benefits
As shown in the diagram above, the dotted line expressing the depth of
branding that can be applied to the core product. This depth signifies the
extent of augmentation that can be applied. The differences that are identified
at the time of augmentation could be rational and tangible (closer to the core
product), or could be symbolic, emotional and intangible (further away from
the core product). One marketing observer puts it this way:
More specifically, what distinguishes a brand from its unbranded

commodity counterpart and gives it equity is the sum total of
consumer’s perceptions and feelings about the product’s attributes
and how they perform, about the brand name and what it stands
for, and about the company associated with the brand.
Brands are also known to move from Product Feature propositions to

Functional Benefit propositions to Emotional Benefit propositions. Hence a
brand such as Kellogg’s, when it was first launched in India, centered its
proposition around ‘Iron’ as a product feature, where ‘Iron shakti’ was
identified as a major selling point. At this stage, Iron was the product feature
around which the proposition was centered. Over time, Kellogg’s moved on to
talking about ‘improved memory’ for the child, which was a functional benefit
that the Iron ingredient provided. Over time, the brand now talks about
‘intelligent child, far superior than peers’ which is an Emotional benefit which
appeals to the hearts and minds of all mothers who want to see their child
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excel. While progressing through these stages, it is imperative to keep these
basic questions in mind:
a. What attributes are embodied in the product or service?

b. What advantages does it incorporate?
c. What benefits does it provide?
d. What obsessions does it represent?
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Why Brand?
An obvious question here is that why are brands important? Should

companies really invest that much of time, money, energy in building
their brands? This question can be answered mainly from two
perspectives, i.e. the Consumers and the Manufacturers
Consumers Manufacturer
Means of identification
Identification of source or
Means of legally protecting
product
unique features
Assignment of responsibility to
Signal of quality level to
product maker
satisfied customers
Risk reducer
Means of endowing products
Search cost reducer
with unique associations
Promise, bond
Source of competitive
Symbolic device
advantage
Signal of quality
Source of financial advantage
An obvious question is. Why are brands important? What functions do they
perform that make them so valuable to marketers? One can take a couple of
perspectives to uncover the value of brands to both consumers and firms
themselves.
Consumers
Brands identify the source or maker of a product and allow consumers to

assign responsibility to a particular manufacturer or distributor. Most
important, brands take on special meaning to consumers. Because of past
experiences with the product and its marketing program over the years,
consumers learn about brands. They find out which brands satisfy their needs
and which ones do not. As a result, brands provide a shorthand device or
means of simplification for their product decisions. Housewives who are used
to particular brands of household products, would comfortably buy the same
brand month after month, without bothering to change their brands.
If consumers recognize a brand and have some knowledge about it, then they
do not have to engage in a lot of additional thought or processing of
information to make a product decision. Thus, from an economic perspective,
brands allow consumers to lower search costs for products both internally (in
terms of how much they have to think) and externally (in terms of how much
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they have to look around). Based on what they already know about the brand
– its quality, product characteristics, and so forth – consumers can make
assumptions and form reasonable expectations about what they may not
know about the brand.
The meaning imbued in brands can be quite profound. The relationship

between a brand and the consumer can be seen as a type of bond or pact.
Consumers offer their trust and loyalty with the implicit understanding that the
brand will behave in certain ways and provide them utility through consistent
product performance and appropriate pricing, promotion, and distribution
programs and actions. To the extent that consumers realize advantages and
benefits from purchasing the brand, and as long as they derive satisfaction
from product consumption, they are likely to continue to buy it.
These benefits may not be purely functional in nature. Brands can serve as
symbolic devices, allowing consumers to project their self – image. Certain
brands are associated with being used by certain types of people and thus
reflect different values or traits. Consuming such products is a means by
which consumers can communicate to others – or even to themselves – the
type of person they are or would like to be. Pulitzer prize winning author
Daniel Boorstein asserts that, for many people, brands serve the function that
fraternal, religious, and service organizations used to serve – to help people
define who they are and then help people communicate that definition to
others. As Harvard’s Susan Fournier notes:
Relationships with mass (market) brands can soothe the “empty

selves left behind by society’s abandonment of tradition and
community and provide stable anchors in an otherwise changing
world. The formation and maintenance of brand – product
relationships serve many culturally – supported roles within post-
modern society.”
Brands can also play a significant role in signalling certain product

characteristics to consumers. Researchers have classified products and their
associated attributes or benefits into three major categories: search goods,
experience goods, and credence goods. “With search goods, product
attributes can be evaluated by visual inspection (e.g., the sturdiness, size,
colour, style, weight, and ingredient composition of a product). With
experience goods, product attributes – potentially equally important – cannot
be assessed so easily by inspection, and actual product trial and experience
is necessary (e.g., as with durability, service quality, safety, and case of
handling or use). With credence goods, product attributes may be rarely
learned (e.g., insurance coverage). Because of the difficulty in assessing and
interpreting product attributes and benefits with experience and credence
goods may be particularly important signals of quality and other
characteristics to consumers for these types of products.
Brands can reduce the risks in product decisions. Consumers may perceive
many different types of risks in buying and consuming a product. For example,
if I were to evaluate and buy a car for the first time;
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Functional risk: The product does not perform up to expectations. (The car
breaks down often and gives me problem in performance)
Physical risk: The product poses a threat to the physical well – being or
health of the user or others (The car may increase my risk of having
mishaps and accidents on the road)
Financial risk: The product is not worth the price paid (The other brand of
car was better value for money)
Social risk: The product results in embarrassment from others (The car
does not live up to my social standards)
Psychological risk: The product affects the mental well –being of the user
(The car is constantly keeping me worried of added fuel expenditure)
Time risk: The failure of the product results in an opportunity cost of finding
another satisfactory product (I am wasting too much of my time in deciding
which car to buy)
Although there are a number of different means by which consumers handle

these risks, certainly one way in which consumers cope to buy well –known
brands, especially those brands with which consumers have had favourable
past experiences. Thus, knowing that Maruti is a good, trusted and well
established brand, will help me in eliminating the amount of risks perceived,
and will aid my final decision. Thus, brands can be a very important risk –
handling devices.
Firms
Brands also provide a number of valuable functions to firms. Fundamentally,

they serve an identification purpose to simplify product handling or tracing for
the firm. Operationally, brands help to organize inventory and accounting
records. A brand also offers the firm legal protection for unique features or
aspects of the product. A brand can retain intellectual property rights, giving
legal title to the brand owner. The brand name can be protected through
patents, and packaging can be protected through copyrights and designs.
These intellectual property rights ensure that the firm can invest in the brand
and reap the benefits of a valuable asset.
As noted earlier, these investments in the brand can endow a product with
unique associations and meanings that differentiate it from other products.
Brands can signal a certain level of quality so that satisfied buyers can easily
choose the product again. This brand loyalty provides predictability and
security of demand for the firm and creates barriers of entry that make it
difficult for other firms to enter the market. Although manufacturing processes
and product designs may be easily duplicated, lasting impressions in the
minds of individuals and organizations from years of marketing activity and
product experience may not be so easily reproduced. In this sense, branding
can be seen as a powerful means of securing a competitive advantage.
In short, to firms, brands represent enormously valuable pieces of legal

property, capable of influencing consumer behavior, being bought and sold,
and providing the security of sustained future revenues to their owner. For
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these reasons, large earning multiples have been paid for brands in mergers
or acquisitions.
The price premium paid for companies is often clearly justified on the basis of
assumptions regarding the extra profits that could be extracted and sustained
from their brands, as well as the tremendous difficulty and expense of creating
similar brands from scratch. Thus, much of the recent interest in brands from
senior management has been a result of these bottom line financial
considerations. For a typical fast – moving –consumer-goods (FMCG)
company, the vast majority of its corporate value is made up by intangible
assets and good will- net tangible assets may be made up by brands.
Brand Building Strategy- An Overview
Consumer Insights
Brand Positioning
Defining the Frame of Reference
Brand Identity
Deriving the Core Brand Values
Articulating Brand Identity

Expressing through Brand Elements
Executing Brand Identity

Expressing through Brand Marketing
Programs
Extending Brand Identity

Creating Brand Extensions
Reviewing Brand Identity

Evaluating Brand Equity
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CHAPTER 2
GAINING CUSTOMER INSIGHTS
Consumer Insights
Brand Positioning
Brand Identity

Expressing through Brand

Marketing Programs


Consumer Insights
The first stage in the brand building strategy is to first understand customer
insights. A brand lives in the customer’s mind in the form of a universe of
associations. So, when you are confronted with the word, ‘Bajaj’, immediately
a universe of associations spring to the mind- key concepts being scooter,
motorcycles, hamara bajaj, value for money, Indian etc.
Semantic memory is one important aspect of consumer knowledge. It refers to
how to store the meanings of verbal material in the long-term memory.
Semantic memory works in the form of networks. The network has nodes and
links or connections. Nodes represent the semantic concepts, and the
connections represent the relationship between them. For example, consider
the diagram below:
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SOAP
FRESH
LIME
LIRIL
WATERFALL
BATHING
All brands are stored in a similar form in a consumers mind. A variety of

information is generally stored in an associative network of this kind. For
example, the brand name, product category, use experience, visuals from the
advertisement, people associated, feelings generated etc. Development of a
correct associative network is at the heart of any brand building exercise.
Customers discriminate against other brands in the category because of the
‘created’ network of associations. For a powerful brand, a good product needs
to be supported by the right knowledge structure. When something
undesirable gets connected with the network by way of a new node, the brand
suffers in the marketplace. For example, when Tata Indica was first launched
in the market, the car did not perform well functionally. Due to this, certain bad
associations were inextricably linked to the product, and the sales suffered
until the company decided to launch a new version of the vehicle. So was the
case with Limca, when the BVO controversy erupted. Limca was seen to be
containing a harmful chemical used as an agent. The result, a node with a
strong connection got attached to the hub-Limca. These associations make
consumers dislike the brand.
Create Network Structure
Hence the key to making a strong powerful brand is to create a solid and
appealing associative network structure for the brand. It is also known that
strong brands are generally preferred in the marketplace. Which is why a
Coke, Nike, Levis, Gillette etc are strong preferred brands in the marketplace.
Customers ask for these brands rather than others. Their success lies in their
ability to be chosen above other brands. The customer’s choice is really an
exercise in elimination. The essential questions surrounding the concept of
choice are why and how a brand is chosen while others are rejected. Consider
the diagram below:
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Decision Making Process
All Brands
Known Unknown
Brands Brands
Acceptable Unacceptable Indifferent Overlooked

Brands Brands Brands Brands
Purchased Not Purchased

Brand Brands
A pioneering framework illustrating the decision making process suggests that

the consumer moves through the four stages of 1) Problem Recognition 2)
Search and Evaluation 3) Purchasing Process and 4) Post Purchase
Behaviour. Once the problem is recognised by a consumer, he or she starts
searching and evaluating brands. At this stage, certain brands are eliminated
from the list, and certain brands short-listed for purchase. As shown in the
diagram above, brands that are known move into a consumer’s consideration
set. Out of these, certain brands are acceptable, certain brands are
unacceptable, some are ignored and some of the brands may have been
overlooked. For example, when a consumer wants to buy a watch, he may
face the following situation:
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Total Brands: Titan, Timex, Maxima, Seiko, Citizen, Casio, Lancer,
Omega, Rolex, HMT, Patek Phillipe, Tag Heuer etc.
Known Brands: Titan, Timex, Maxima, Seiko, Citizen, Casio, Omega,
Rolex, HMT, Tag Heuer
Unknown Brands: Patek Phillipe, Lancer
Considered Brands: Titan, Timex
Unacceptable Brands: Maxima, Seiko, HMT
Ignored Brands: Tag Heuer, Rolex
Overlooked Brands: Citizen, Casio
Purchased Brand: Titan
Not Purchased Brand: Timex
The implication for a brand manager is that marketing efforts must focus on
placing the brand in the ‘known’ set, thereafter in the ‘acceptable’ set and
thereafter in the ‘purchased’ category. If the brand fails to get into the
consideration set, the marketer loses the opportunity to succeed. Hence, at
the stage of ‘Search and Evaluation’ the brand must hit the consumer with the
right kind of knowledge structure or associative network memory model, to be
considered for purchase.
The power of the brand lies in what customers have learned, felt, seen, and
heard about the brand as a result of their experiences over time. In other
words, the power of a brand lies in what resides in the minds of customers.
The challenge for marketers in building a strong brand is ensuring that
customers have the right type of experiences with products and services and
their accompanying marketing programs so that the desired thoughts,
feelings, images, beliefs, perceptions, opinions, and so on become linked to
the brand.
Brand knowledge is the key to creating brand equity, because it creates the
differential effect that drives brand equity. What marketers need, then, is an
insightful way to represent how brand knowledge exists in consumer memory.
Consistent with the associative network memory model, brand knowledge is

conceptualised here as consisting of a brand node in memory with a variety of
associations linked to it. In particular, brand knowledge can be characterized
in terms of two components: brand awareness and brand image. Brand
awareness is related to the strength of the brand node or trace in memory, as
reflected by consumers’ ability to identify the brand under different conditions.
Brand awareness is a necessary, but not always sufficient, step in building
brand equity. Other considerations, such as the image of the brand, often
come into play.
Brand image can be defined as perceptions about a brand as reflected by the

brand associations held in consumer memory. In other words, brand
associations are the other informational nodes linked to the brand node in
memory and contain the meaning of the brand for consumers. Associations
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come in all forms and may reflect characteristics of the product or aspects
independent of the product itself.
For example, consider the brand Amul. If someone asked you what came to
mind when you thought of Amul, what might you say? You might reply with
associations such as “butter”, “milk products”, “taste of India” and so forth.
Your brand image for Amul can be made up by the associations that came to
your mind. Through skillful marketing, Amul has been able to achieve a rich
brand image made up of a host of brand associations in the minds of at least
some consumers. Different consumers might think of different associations for
Amul.
Other brands of course, will be characterized by a different set of

associations. For example, McDonald’s marketing program attempts to create
brand associations in consumers’ minds to “quality,” “service, “ “cleanliness,”
and “value.” McDonald’s rich brand image probably also includes strong
associations to “Ronald McDonald.” “golden arches,” “for kids,” and
“convenient, “ as well as perhaps potentially negative associations such as
“fast food.” Coca Cola’s marketing program strives to link brand associations
in consumers’ minds to refreshment, “ “taste,” “availability,” “affordability,” and
“accessibility.” Whereas Mercedes – Benz has achieved strong associations
to “performance” and “status.
To build a strong brand, the customer needs to hold strong, unique and
favourable associations in his memory. On some cases, brand awareness
alone is sufficient to result in more favourable consumer response, for
example, in low involvement decision settings where consumers are willing to
base their choices merely on familiar brands. In most other cases, however,
the strength, favourability, and uniqueness of the brand associations play a
critical role in determining the differential response making up the brand
equity. If the brand is perceived by consumers to be the same as a
representative version of the product or service in the category, then
consumers response to marketing for the brand would not be expressed to
vary from when the marketing is attributed to a fictitiously named or unnamed
product or service. If the brand has some salient, unique associations, then
consumer response should differ.
For branding strategies to be successful and brand equity to be created,

consumers must be convinced that there are meaningful differences among
brands in the product or service category. The key to branding is that
consumers must not think that all brands in the category are the same. Thus,
establishing a high level of brand awareness and a positive brand image in
consumer memory- in terms of strong, favourable, and unique brand
associations- produces the knowledge structures necessary for building a
strong brand.
Brand Awareness
Brand awareness consists of brand recognition and brand recall performance.

Brand recognition relates to consumers’ ability to conform prior exposure to
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the brand when given the brand as a cue. In other words, brand recognition
requires that consumers can correctly discriminate the brand as having been
previously seen or heard. For example, when consumers go to the store, is it
the case that they will be able to recognize the brands as one to which they
have already been exposed? Brand recall relates to consumers’ ability to
retrieve the brand from memory when given the product category, the needs
fulfilled by the category, or a purchase or usage situation as a cue. In other
words, brand recall requires that consumers correctly generate the brand from
memory when given a relevant cue. For example, recall of Kellogg’s Corn
Flakes will depend on consumers’ ability to retrieve the brand when they think
of the cereal category or of what they should eat for breakfast or eat for
breakfast or snack, either at the store (when making a purchase), at home
(when making a consumption choice), or wherever.
As is the case with most information in memory, it is generally easier to

recognize a brand in a store than it is to recall it from mere memory. The
relative importance of brand recall and recognition will depend on the extent to
which consumers make product- related decisions with the brand present or
not. For example, if product decisions are made in the store, brand recognition
may be more important (and easy) because the brand will actually be
physically present. Outside the store or in any situation where the brand is not
present on the other hand, it is probably more important that the consumer be
able to actually recall the brand from memory. For this reason, brand recall is
critical for service and online brands. Consumers must actively seek the brand
and therefore be able to retrieve it from memory when appropriate.
Establishing Brand Awareness
How do you create brand awareness? In the abstract, increasing the

familiarity with the brand through repeated exposure creates brand
awareness, although this is generally more effective for brand recognition than
for brand recall. That is, the more a consumer “experiences” the brand by
seeing it, hearing it, or thinking about it, the more likely it is that the brand will
become strongly registered in memory. Thus, anything that causes
consumers to experience a brand name, symbol, logo, character, packaging,
or slogan can potentially increase familiarity and awareness of that brand
element. Examples include a wide range of communication options such as
advertising and promotion, sponsorship and event marketing, publicity and
public relations, and outdoor advertising. Moreover, it is important to visually
and verbally reinforce the brand name with a full complement of brand
elements (e.g., in addition to its name, Britannia uses the Britannia logo and
its distinctive music to enhance its awareness in multiple ways).
Although brand repetition increases the strength of the brand and thus its
recognizability, improving recall of the brand requires linkages in memory to
appropriate product categories or other situational purchase or consumption
cues. In particular, to build awareness, it is often desirable to develop a slogan
or jingle that creatively pairs the brand and the appropriate category or
purchase or consumption cues (and, ideally the brand positioning as well, in
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terms of building a positive brand image). Additional use can be made of the
other brand elements- logos, symbols, characters, and packaging.
The manner by which the brand and its corresponding product category are
paired (e.g., with an advertising slogan) will be influential in determining the
strength of the product category links. For brands with strong category
associations (e.g.Cadbury’s Chocolates), the distinction between brand
recognition and recall may not matter much- consumers thinking of the
category are likely to think of the brands. For brands that may not have the
same level of initial category awareness (e.g., in competitive markets or when
the brand is new to the category, eg. Hyundai Getz cars), it is more important
to emphasize category links in the brand to the proper category or other
relevant cues may become especially important over time of the product
meaning of the brand changes (e.g., through brand extensions or mergers or
acquisitions).
In short-, brand awareness is created by increasing the familiarity of the brand

through repeated exposure (for brand recognition) and strong associations
with the appropriate product category or other relevant purchase or
consumption cues (for brand recall).
Brand Image
A positive brand image is created by marketing programs that link strong,

favourable, and unique associations to the brand in memory. Besides
marketer- controlled sources of information, brand associations can also be
created in a variety of other ways: by direct experience; from information
communicated about the brand from the firm or other commercial or non-
partisan sources (e.g., Consumer Reports or other media vehicles) and word
of mouth; and by assumptions or inferences from the brand itself (e.g., its
name or logo) or from the identification of the brand with a company, country,
channel or distribution, or some particular person, place, or event.
Marketers should recognize the influence of these other sources of

information by both managing them as well as possible and adequately
accounting for them in designing communication strategies.
Strength of Brand Associations
Making sure that associations are linked sufficiently strongly to the brand will
depend on how the marketing program and other factors affect consumers’
brand experiences. Associations will vary in the strength of their connection to
the brand node. Strength is a function of both the amount, or quantity, of
processing that information receives as well as the nature, or quality, of that
processing. The more deeply a person thinks about product information and
relates it to existing brand knowledge, the stronger the resulting brand
associations. Two factors facilitating the strength of association to any piece
of information are the personal relevance of the information and the
consistency with which this information is presented over time. The particular
associations that are recalled and salient will depend not only on the strength
20
of association, but also on the context in which the brand is considered and
the retrieval cues that are present that can serve as reminders.
Marketing communications programs attempt to create strong brand

associations and recalled communication effects through a variety of means,
such as using creative communications that cause consumers to elaborate on
brand- related information and relate it appropriately to existing knowledge,
exposing consumers to communications repeatedly over time, and ensuring
that many retrieval cues are present as reminders.
Favourability of Brand Associations
Choosing which favourable and unique associations to link to the brand

requires careful analysis of the consumer and competition to determine the
optimal positioning for the brand. Favourable associations for a brand are
those associations that are desirable to consumers and are successfully
delivered by the product and conveyed by the supporting marketing program
for the brand (e.g., such that the brand is seen as highly convenient, reliable,
effective, efficient, colourful, and so on).
In terms of desirability, how important or valued is the image association to

the brand attitudes and decisions made by consumers? Desirability depends
on three factors: (1) how relevant consumers find the brand association, (2)
how distinctive consumers find the brand association, and (3) how believable
consumers find the brand association? Creating a favourable association also
requires that the firm be able to deliver on the desired association. In terms of
deliverability, the main question is, what would be the cost or investment
necessary and the length of time involved to create or change the desired
association(s)? Deliverability also depends on three factors: (1) the actual or
potential ability of the product to perform, (2) the current or future prospects of
communicating that performance, and (3) the sustainability of the actual and
communicated performance over time.
Uniqueness of Brand Associations
Brand associations may or may not be shared with other competing brands.
The essence of brand positioning is that the brand has a sustainable
competitive advantage or “unique selling proposition” that gives consumers a
compelling reason why they should buy that particular brand. These
differences may be communicated explicitly by making direct comparisons
with competitors, or may be highlighted implicitly without stating a competitive
point of reference. Furthermore, they may be based on product- related or
non- product- related attributes or benefits. In fact, in many categories, non-
product related attributes, such as user type or usage situation, might more
easily create unique associations (e.g., the rugged western image of Marlboro
cigarettes or the rebellious nature of Axe deodorants).
The existence of strongly held, favourably evaluated associations that are

unique to the brand and imply superiority over other brands is critical to a
brand’s success. Yet, unless the brand faces no competitions, it will most
21
likely share some associations with other brands. Shared associations can
help to establish category membership and define the scope of competition
with other products and services.
Research on non-comparable alternatives suggests that even if a brand does

not face direct competition in its product category, and thus does not share
product-related attributes with other brands, it can still share more abstract
associations and face indirect competition in a more broadly defined product
category. Thus, although a railroad may not compete directly with another
railroad, it still competes indirectly with other forms of transportation, such as
airlines, cars, and buses. A maker of educational CD- ROM products may be
implicitly competing with all other forms of education and entertainment, such
as books, videos, television, and magazines. For these reasons, branding
principles are now being used to market a number of different categories as a
whole- for example, banks, furniture, carpets, bowling, and trains, to name just
a few.
A product or service category can also be characterized by a set of

associations that includes specific beliefs about any member in the category,
as well as overall attitudes toward all members in the category. Those beliefs
might include many of the relevant product- related attributes for brands in the
category, as well as more descriptive attributes that do not necessarily relate
to product or service performance (e.g., the colour of a product, such as red
for ketchup).
Because the brand is linked to the product category, some category

associations may also become linked to the brand, either in terms of specific
beliefs or overall attitudes. Product category attitudes can be a particularly
important determinant of consumer response. For example, if a consumer
thinks that all brokerage houses are basically greedy and that brokers are in it
for themselves, then he or she probably will have similarly unfavourable
beliefs about and negative attitude toward any particular brokerage house
simply by virtue of its membership in the category. Thus, in almost all cases,
some product category associations that are linked to the brand will also be
shared with other brands in the category. Note that the strength of the brand
associations to the product category is an important determinant of brand
awareness.
Thus, it is important to associate unique, meaningful points of difference to the

brand to provide a competitive advantage and “reason why “ consumers
should buy it. For some brand associations, however, consumers only need to
view them at least as favourably as competitors. That is, it may be sufficient
that some brand associations are seen as roughly equal in favourability with
competing brand associations, so that they function as points of parity in
consumers’ minds to negate potential points of difference for competitors. In
other words, these associations are designed to provide “no reason why not”
for consumers to choose the brand. Assuming that other brand associations
are evident as points of difference, more favourable brand evaluations and a
greater likelihood of choice should then result.
22
Neither all brand associations will be deemed important and viewed
favourably by consumers, nor will they equally valued across different
purchase or consumption situations. Moreover, not all brand associations will
be relevant and valued in a purchase or consumption decision. The
evaluations of brand associations may be situation- or context- dependent and
vary according to the particular goals that consumers have in that purchase or
consumption decision. An association may be valued in one situation but not
another.
23
CHAPTER 3
BRAND POSITIONING
Consumer Insights
Brand Positioning
Brand Identity


Marketing Programs


Brand Positioning
Brand positioning is at the heart of marketing strategy. Kotler defines brand

positioning as 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. “ Thus,
positioning, as the name implies, involves finding the proper “location” in the
minds of a group of consumers or market segment so that they think about a
product or service in the “right” or desired way. Positioning is all about
identifying the optimal location of a brand and its competitors in the minds of
consumers to maximize potential benefit to the firm. A good brand positioning
helps to guide marketing strategy by clarifying what a brand is all about, how it
is unique and how it is similar to competitive brands, and why consumers
should purchase and use the brand.
Positioning is more akin to a ‘frame of reference’ that we are creating for the
brand. It is a platform, or space that the brand occupies, which ultimately
lodges in the consumer’s mind. Hence, it follows directly from the powerful
consumer insights derived, and leads to the development of a sharper brand
identity.
24
Deciding on a positioning requires determining that frame of reference by
identifying the target market, the nature of competition, and ideal points-of-
difference and the ideal points-of-parity in their brand associations. In other
words, it is necessary to decide (1) who the target consumer is, (2) who the
main competitors are, (3) how the brand is different from these competitors
and (4) how the brands is similar to these competitors.
(1) Target Market
Identifying the target consumer market is important because different

consumers may have different brand knowledge structures and thus
different perceptions and preferences for the brand. Without this
understanding, it may be difficult to be able to state which brand
associations should be strongly held, favourably and uniquely. A
number of considerations are important in defining and segmenting a
market and choosing target market segments.
A market is a set of all actual and potential buyers who have sufficient
interest in, income for, and a access to a product. In other words, a
market consists of all consumers with sufficient motivation, ability, and
opportunity to buy a product. Market segmentation involves dividing the
market into distinct groups of homogenous consumers who have
similar needs and consumer behavior and thus require similar
marketing mixes. Defining a market segmentation plan involves
tradeoffs between costs and benefits. The more finely segmented the
market is, the greater the likelihood that the firm will be able to
implement market programs that meet the needs of consumers in any
one segment. The advantage of a more positive consumer response
from a customized marketing program, however, can be offset by the
greater costs from a lack of standardization.
(2) Nature of Competition
It is difficult to disentangle target market decisions from decisions

concerning the nature of competition for the brand because they are
often so closely related. In other words, deciding to target a certain type
of consumer often, at least implicitly, defines the nature of competition
because certain firms have also decided to target that segment in the
past (or plan to do so in the future) or because consumers in that
segment already may look to certain brands in their purchase
decisions. Other issues can be raised, however, in defining the nature
of competition and deciding which products and brands are most likely
to be seen as close substitutes. For example, the nature of competition
may depend on the channels of distribution chosen. Competitive
analysis considers a whole host of factors – including the resources,
25
capabilities, and likely intentions of various other firms – to choose
markets where consumers can be profitably serviced
One lesson stressed by many marketing strategists is not to be narrow

in defining competition. Often competition may occur at the benefit level
rather than the attribute level. Thus, a luxury good with a strong
hedonic benefit (e.g., segment D car) may compete as much with a
vacation as with other durable goods (e.g., furniture).
Points of Parity and Points of Difference
Once the appropriate competitive frame of reference for positioning has been
fixed by defining the customer target market and nature of competition, the
basis of the positioning itself can be defined. Arriving at the proper positioning
requires establishing the correct points-of-difference and points-of-parity
associations.
(3) Points-of-Difference Associations
Points of Difference (PODs) should be strong, favorable, and unique

brand associations for the brand. They may be based on virtually any
type of attribute or benefit association. All that ultimately matters for an
attribute or benefit association to become a point of difference is that it
becomes a strong, favorable, and unique association in the minds of
consumers. That is, 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.
Although a myriad of different types of brand associations are possible
candidates to become points of difference, brand associations can be
broadly classified in terms of either functional, performance- related
considerations or abstract, imagery- related considerations.
The concept of PODs has much in common with several other well –
known market concepts. For example, it is similar to the notion of
unique selling proposition (USP), a concept pioneered by Rosser
Reeves and the Ted Bates advertising agency in the 1950s. The
original idea behind USP was that advertising should give consumers a
compelling reason to buy a product that competitors could not match.
With this approach, the emphasis in designing ads was placed on
communicating a distinctive, unique product benefit (i.e., the ad
message or claims) and not on the ad-creative benefit (i.e., the ad
created or executed). In other words, USP emphasized what was said
in an ad as opposed to how it was said. As a result, ads single-
mindedly hammered the key consumer benefit.
Consumers’ actual brand choices often depend on the perceived

uniqueness of brand associations. Creating strong, favourable, and
unique associations is a real challenge to marketers, but essential in
terms of competitive brand positioning. Points of difference may involve
26
performance attributes (e.g., the fact that Britannia singles cheese has
1 glass of milk) or performance benefits (e.g., the fact that Whirlpool
refrigerators announce their fast cooling features). In other cases,
PODs involve imagery associations (e.g., the western imagery of
Marlboro cigarettes). Many top brands attempt to create a point of
difference on ”overall superior qaulity,” whereas a positioning strategy
adopted by a number of other firms is to create a point of difference for
their brands as the “low- cost provider” of a prodcut or service. Thus, a
host of different types of PODs are possible.
(4) Points- of- Parity Associations.
Points of parity (POPs), on the other hand, are those associations that
are not necessarily unique to the brand but may in fact be shared with
other brands. These types of associations come in two basic forms:
category and competitive . Category points of parity are those
associations that consumers view as being necessary to be a
legitimate and credible offering within a certain product or service
category. In other words, they represent necessary – but not
necessarily sufficient- conditions for brand choice. These attribute
associations are minimally at the generic product level and most likely
at the expected product level. Thus, consumers might not consider a
bank truly a “bank “ unless it offered a range of checking and savings
plans; provided safety deposit boxes, travelers checks, and other such
services; had convenient hours and automated teller machines; and so
forth. Category POPs may change over time because of technological
advances, legal developments, and changes in customer needs, but
the attributes and benefits that function as category POPs can be seen
as the “green fees” to play the marketing game.
Note that category POPs become especially critical when a brand

launches a brand extension into a new category. In fact, the more
dissimilar the extension category, the more important is to make sure
that category POPs are sufficiently well established . The implications
of this realization for the introductory marketing program for an
extension are clear. In many cases, consumers might have a clear
understanding of the extension’s intended point of difference by virtue
of its use of an existing brand name. Where consumers often need
reassurance, however, and what should often be the focus of the
marketing program, is whether the extension also has the necessary
points of parity.
Competitive points-of-parity associations are those associations

designed to negate competitors’ points of difference. In other words, if
in the eyes of consumers, the brand association designed to be the
competitor’s point of difference (e.g., a product benefit of some type ) is
as strongly held for the target brand as for comeptitor’s brands and the
target brand is able to establish another association as strong,
favorable, and unique as part of its point of difference, then the target
brand should be in a superior competitive position. In short, if a brand
27
can “break even” in those areas where their competitors are trying to
find an advantage and can achieve advantages in some other areas,
the brand should be in a strong - and perhaps unbeatable – competitive
position.
Points of Parity versus Points of Difference
To achive a point of parity on a particular attribute or benefit, a sufficient

number of consumers must believe that a brand is “good enough” on that
dimension . There is a “zone” or “range of tolerance or acceptance” with
POPs. It does not have to be the case that the brand is literally seen as equal
to competitors, but consumers must feel that the brand does sufficiently well
on that particular attribute or benefit so that they do not do not consider it to
be a negative or a problem. Assuming consumers feel that way, they may
often be willing to base their evaluations and decisions on other factors.
Points of parity are thus easier to achieve than points of difference, where the
brand must demonstrate clear superiority.
Often, the key to positioning is not so much in acheieving a point of difference

as in achieving necessary of competitive points of parity.
Yellow Food
Heart
Attack
SUNDROP
Healthy
SAFFOLA
Refined
Little Kid- Oil
Cartwheels
Fitness
Positioning Guidelines
The concepts of points of difference and points of parity can be inavluable

tools to guide positioning. A number of considerations come into play in
conducting positioning analysis and deciding on the desired PODs and POPs
and the resulting brand image. Two key issues in arriving at the optimal
competitive brand positioning are (1) defining and communicating the
28
competitive frame of reference and (2) choosing and establishing points of
parity and points of difference.
1. Defining and Communicating the Competitive Frame of Reference
A starting point in defining a competitive frame of reference for a brand

positioning is to detrmine category memebrship.Membership indicates the
products or sets of products with which a brand competes. Choosing to
compete in different categories often results in different competitive frames of
reference and thus different POPs and PODs.
Communicating category membership informs the consumer about the goals

that they might achieve by using a product or service. For highly established
products and services, category membership is not a focal issue. Target
customers are aware that Coca-Cola is a leading brand of soft-drink, that
Kellogg’s Corn Flakes is a leading brand of cereal.
There are many situations, however, in which it is important to inform

consumers of a brand’s category membership. Perhaps the most obvious
situation is the introduction of new products, where the category membership
is not always apparent. This uncertainty can be especially true for high- tech
products.
Brands are sometimes affiliated with categories in which they do not hold
membership rather than with the one in which they do. This approach is a
variable way to highlight a brand’s point of difference from competitor’s,
provided that consumers know the brand’s actual membership.
The preferred approach to positioning is to inform consumers of a brand’s

membership before stating its point difference in relation to other category
members. Presumably, consumers need to know what a product is and what
function it serves prior to assessing whether it dominates the brands against
which it competes. For new products, separate marketing programs are
generally needed to inform consumers of membership and to educate them
about a brand’s point of difference. For brands with limited resources, this
implies the development of a marketing strategy that establishes category
membership prior to one that states a point of difference. Brands with greater
resources can develop concurrent marketing programs in which one features
membership and the other the point of difference. Efforts to inform consumers
of membership and points of difference in the same ad, however, are often not
effective.
There are three main ways to convey brand’s category membership:

communicating category benefits, comparing to exemplars, and relying on the
product descriptor.
To reassure consumers that a brand will deliver on the fundamental reason for
using a category, benefits are frequently used to announce category
membership. Thus, industrial motors might claim to have power, and
analgesics might announce their efficacy in reducing pain. These benefits are
presented in a manner that does not imply brand superiority but merely notes
29
that the brand possesses these properties as a means to establish category
POPs. To provide supporting rationale so that consumers believe that a brand
has the benefits that imply membership in a category, performance and
imagery associations can be used. An Ready to Eat packaged food brand
might attain membership in the Ready to Eat category by claiming the benefit
of great taste and might support this benefit claim by possessing high – quality
ingredients (performance) or by showing users delighting in its consumption
(imagery).
2. Choosing Points of Parity and Points of Difference
Points of parity are driven by the needs of category membership (to create
category POPs) and the necessity of negating competitors’ PODs (to create
competitive POPs). In terms of choosing points of difference, broadly, the two
most important considerations are that consumers find the POD desirable and
believe that the firm has the capabilities to deliver on it. If both of these
considerations are satisfied, the POD has the potential to become a strong,
favorable, and unique brand association.
3. Establishing Points of Parity and Points of Difference
Creating a strong, competitive brand positioning requires establishing the right

points of parity and points of difference. The difficulty in doing so, however, is
that many of the attributes or benefits that make up the POPs or PODs are
negatively correlated. That is, if consumers mentally rate the brand highly on
one particular attribute or benefit, they also rate it poorly on another important
attribute. For example, it might be difficult to position a brand as “inexpensive”
and at the same time assert that it is “of the highest quality.” Moreover,
individual attributes and benefits often have positive and negative aspects.
For example, consider a long - lived brand that is seen as having a great deal
of heritage. Heritage could be seen as a positive attribute because it can
suggest experience, wisdom, and expertise. On the other hand, it could also
be easily seen as a negative attribute because it might imply being old –
fashioned and not contemporary and cutting – edge.
Unfortunately, consumers typically desire to maximize both of the negatively

correlated attributes and benefits. The challenge is that competitors often are
trying to achieve their point of difference on an attribute that is negatively
correlated with the point of difference of the target brand. The best approach
clearly is to develop a product or service that performs well on both
dimensions. Thus, the ability of BMW to establish their straddle-positioning
image of “luxury and performance” was due in large part to product design
and the fact that the car was considered both luxurious and high –
performance.
Separate the Attributes An expensive but sometimes effective approach is to

launch two different marketing campaigns, each one devoted to a different
brand attribute or benefit. These campaigns may either run concurrently or
sequentially. For example, Head and Shoulders met success in Europe with a
dual campaign in which one ad emphasized its dandruff removal efficacy
30
while another ad emphasized the appearance and beauty of hair after its use.
The hope is that consumers will be less critical when judging the POP and
POD benefits in isolation because the negative correlation must be less
apparent. The downside to such an approach is that two strong campaigns
have to be developed – not just one. Moreover, by not addressing the
negative correlation head – on, consumers may not develop as positive
associations as desired.
Leverage Equity of Another Entity The brand can “borrow” or leverage the
equity of well – known and well – liked celebrities to lend credibility to one of
the negatively correlated benefits. Brands can potentially link themselves to
any kind of entity that possesses the right kind of equity – a person, other
brands, event, and so forth –as means to establish an attribute or benefit as a
POP or POD. Self – branded ingredients may also lend some credibility to a
questionable attribute in consumers’ minds. Borrowing equity, however, is
neither costless nor riskless.
Redefine the Relationship Finally, another potentially powerful but often-

difficult way to address the negative relationship between attributes and
benefits in the minds of consumers are to convince them in fact that the
relationship is positive. This redefinition can be accomplished by providing
consumers a different perspective and suggesting that they may be
overlooking or ignoring certain factors or other considerations.
4. Upgrading Positioning over Time
The previous section described some positioning guidelines that are

especially useful for launching a new brand. With established brands,
competitive forces often dictate shifts in positioning strategy over time.
Updating positioning involves two main issues. The first is how to deepen the
meaning of the brand to tap into core brand values or other, more abstract
considerations (laddering). The second is how to respond to competitive
challenges that threaten an existing positioning (reacting).
Laddering
Although identifying PODs to dominate competition on benefits that are

important to consumers provides a sound way to build an initial position, once
the target market attains a basic understanding of how the brand relates to
alternatives in the same category, it may be necessary to deepen the
meanings associated with the brand.
31
CHAPTER 4
BRAND IDENTITY
Consumer Insights
Brand Positioning
Brand Identity


Marketing Programs


Brand Identity
In the previous section, we have defined Brand Positioning and its role in
brand strategy. Brand Positioning is the first step that a brand should take in
order to define its ‘frame of reference’ for the consumer. Hence, it needs to
clearly identify the target consumer, competitors, points of parity and points of
difference that a brand should maintain. Metaphorically speaking, brand
positioning is defining the outer framework or boundary for the brand in
question. It is like giving the outline boundary on a canvas. What you
eventually paint on a campus can be defined as the actual character or
identity of the brand, which will be discussed next.
The Oxford dictionary’ defines identity as “the fact of being who or what a
person or thing is;” “the characteristics determining this.” The concept of
identity has been widely used n the context of humans. Identity card is
particularly employed as a devise to establish the identity of the owner. It
describes who the person is. Military history is replete with instances where
32
spies were sent to enemy territories to uncover battle plans and dig enemy
strengths by camouflaging their identities. They attempted to establish in the
enemy’s territories what they were not – by adopting their dresses, accents,
languages, mannerisms, etc. The key consideration to their success was how
effectively they established what they were not. The whole establishment of
spying is based on a critical understanding of who you are – the real identity
and what you want to be perceived as – the brand identity perceived by the
perceiver.
In other instances, the task is exactly opposite to what we have in spying

endeavours. Now days, in offices, where a large number of people work,
identity becomes an important issue. It is for the safety and proprietary
reasons that only legitimate persons should be allowed to gain entry.
Establishing what/who a person is can be done in a number of ways – dress,
language, code, mannerism, identity card, palm scanning and other electronic
mechanisms. Here, in these instances, the idea is to establish congruence
between who you are (not, who you are not in spying) and whom you are
perceived as. That is to eliminate the possible discrepancy, which may arise
between whom, the person is – identity – and who he has been received as –
decoded identity. The key to establishing correct identity lies in avoiding
things, which may throw the decoded identity out of its intended realm, and
thereby creating problems in gaining entry.
Identity implies what a person or thing is. Appreciation of this is critical

because it draws a separating line as to what a person or thing is not.
Accordingly it is easier to determine what is ‘in’ and ‘in ’sync’ with the identity
and what is not. Many a times decision-makers responsible for steering the
brand do not have any idea as to what the brand is. The result – they end up
taking decisions, which impact the brand adversely for they, lack ideas about
what is legitimate and what works in the interest of the brand. Consider the
following:
Cinthol, once a very powerful brand has been subjected to several

damages because of typical mistakes that brand managers committed. It is
the absence of understanding, may be, about what the brand is that has
led to the present situation. The soap was initially positioned as containing
a deodorizing agent, which would boost the confidence of the user. In the
first moves, Cinthol changed its track and went on to acquire a masculine
image with up market hero/hunk user profile. The brand ambassadors
hired for the job were Imran Khan, Vinod Khanna and later Akshay
Khanna. As usually happens, the brand got entangled with HLL’s rival Liril.
It is the rising popularity of Liril that forced Godrej to position its Cinthol
head on with Liril as a ‘freshness’ soap with lime associations. In fact the
brand communications depicted a slice of lime and a water fall which were
very similar to those conveyed by Liril for years. If one removed the brand
name from the advertisements and television commercials it would have
been near impossible to identity the true sponsor. The brand further saw a
spate of extensions – Cinthol Cologne, Cinthol Lime, Cinthol International.
The focus shifted from brand user to brand ingredients and attributes. It
seems, that the brand suffered because of the absence of a charter-
33
guiding brand decisions. The actions of the managers have left the brand
weak and vulnerable.
Limca reigned the undisputed ruler of the lime drink market for decades.
The slogan “Lime’ n Lemoni Limca…” clearly focused on the unique lemon
taste. The thick cloudy drink formulation gave customers the taste they
preferred. The result, it always out competed its rival, mainly Campa
Lemon flavour with a great margin. But in the last couple of years frequent
tinkering with the brand position has rendered the brand weak. From ‘Lime
and Lemoni…’Limca went on to focus on thirst to suggest itself as a great
thirst quencher. The brand communication stressed on isotonic salts the
drink contained to offer better thirst quenching properties than the other
brands. Then came the ’take it easy’ campaigns depicting funny adult
situations. During the last couple of years, the brand has not been
adequately supported by adequate media spending. The result, Limca
from being a leader has been reduced to a brand very few people ask for.
May be it is the only earlier loyal customers who reach out to the brand
nostalgically to taste the ’Lime and Lemoni’ flavour.
Bata for Indian middle class consumers meant shoes that last. It has
unique value for money position firmly etched in consumer’s mind. Like
many other brands, Bata also took severe beating when brand stewards
took decisions, which did not match with the brand’s core spirit. In the late
eighties and early nineties, Bata brand began to alienate from its core
when management began to stretch the brand upwards. The result, Bata
shoes began to be adorned with brands, which displayed price tags not
within the reach of its core customers. The much hyped ‘European
Collection’ ‘Hush Puppies’ and ‘Marie Claire’ ‘Julio’, ‘Westminster’ range
gave a shock to the typical Bata buyers. While the high price customers
never made Bata shoe stores their destination. For them Bata still meant
an ordinary men’s shoe. The result, the brand began to disenchant its
current customers while the premium shoe buyer was never charmed by
the Bata name. It is only lately that Bata has reverted back to its core by
launching shoes with rubber soles and the ‘Bata Gold’ ranges in order to
reaffirm its commitment to value for money and durability proposition. Now
Bata is beginning to secure and hold over its intended customers.
Brands are the connecting links between the marketers and the customers.
But this connection often suffers at the hands of so called people responsible
for steering the brands. The lack of vision, competitive pressure and often
short – term orientation drive brand marketing efforts. Larry Light once
observed, “Brands do not have to die. They can be murdered. And marketing
Dracula’s is draining the very lifeblood away from brands. Brands are being
bargained, belittled, and battered.” The wounds are inflicted on brands by
reckless decision. Brands suffer on account of:
Brand campaigns, which do not carry through in an unchanging core,

which must remain permanent. For instance the waterfall and Liril girl is
inseparable from what Liril is all about.
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Brand sponsoring event, which does not go with its essence. Many a times
a highly exclusive brand may associate itself with popular sport or event to
gain awareness or recall as a short- term goal.
Excessive reliance on promotions and price discounting.
A brand may choose someone as an ambassador who does not fit with the
overall brand architecture.
Blind line extensions to secure temporary gains in market by cashing in on

market shifts and trends.
Pushing the brand beyond its legitimate territory by brand extensions.

For instance, Pond’s once tried unsuccessfully to extend their brand
name into the toothpaste market.
At the root of such decision-making is usually is lack of appreciation of what a

brand is – what is its identity. Hence, what is within legitimate scope and what
is not is important. The only way a synchronization in marketing efforts could
be achieved is by developing a statement about brand identity. Brand identity
would provide guidance and direction to brand managers. It would demotivate
brand managers into doing things, which may boost on brand’s short – term
performance at the cost of its long - term health.
Aaker defines brand identity as “a unique set of brand associations that the
brand strategist aspires to create or maintain. These associations represent
what the brand stands for and imply a promise to customers from the
organisation members.” What a brand stands for is a crucial question. It
determines the basis on which a brand seeks to create a relationship with
customers. At its core lies the value proposition. What is its unique focus?
How does it differ from the rest in the class?
Brand identity is an insider’s concept. That is, crucial decisions are for the
brand manager to
make. The public façade of identity is brand image. Brand image is the
decoded version of brand identity. Brand managers first ideally define identity
involving difficult questions about a brand’s essence, soul, values, and
visions. It is not a tactical task. It is a strategic exercise.
The purpose is to spell out the brand’s domain. What is it that it seeks out to
perform and achieve externally in the customer’s life? What are compelling
reasons embodied in its essence that would attract customers in spite of a
large number of apparently ’me too’ brands in the category? What are its
bonding agents? In the current times of easy resource availability and barrier
free marketing environment it is much easier to create products. In fact, most
of the new launches in many marketing areas prima facie appear to be brand
launches but a closer examination reveals the truth to the contrary.
The products by compulsion arrive in the market place with a name but they
carry a hollow centre. These launches tend to be limited to product level of a
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brand. That is, the managers at the backside in their companies do not seem
to have a clear idea about brand identity. What are the qualitative and
epistemological aspects of brand? What is its philosophical core? What is its
mission and where is it going? What are the competitive struggles and
pressures to survive which force firms to get into reactionary marketing? The
competitor moves are copied without paying much attention to reason and
logic. The result is a barrage of brand launches without identities. The key
sign of this is the creation of a plethora of marginal brands that start their life
at the product shelf at a retailer’s outlet and continue to vegetate for long
periods. The process is quite similar to human existence. Procreation adds
millions to the world’s population but very few make a mark, while the rest
remain as a faceless crowd. The people who have made a mark in human
history are the ones who had a firm grip on their identity – who they were and
what their mission was.
A brand is a mission of its creator. It is very rare that a brand could be created
without a mission. What does this mission signify? It is what lies at the core of
the brand. Consider an unbranded cigarettes and a pack of Marlboro. What
does the brand add to the product? It is something which can be called
‘Marlboro – ness’. In a similar vein take the case of a heavy motorcycle and a
similar bike with the Harley name on it. Immediately, the product is
transformed. It acquires a large meaning. The brand has added ‘Harley -
ness’. It is this ‘ness’ that is at the heart of the brand identity system. The
brand creator is one who has an idea about this ‘ness’, which forces him/her
to create the brand. A brand without this just cannot break away from product
boundaries. All the powerful brands of the world possess this unique ’- ness’
which forms the fundamental basis of brand relationships with the customers.
The development of the brand’s unique’ – ness’ needs confronting many

fundamental questions/issues. These issues define brand identity for the
people behind the brand. The conceptual clarity must be achieved with
respect to what the brand’s spiritual centre is? With what missions the brand
has come into existence? What is its long - term vision? What are the key
values that epitomise the brand? What is its legitimate territory? What the
entire brand can become and what all it cannot? What are its essential truths?
The identity serves to guide all brand-related efforts. It is a blueprint for action
for brand stewards. It is the brand identity that makes the fundamental
difference. The identity “is a brand’s DNA configuration, a particular set of
brand elements, blended in a unique way, which determines how that brand
will be perceived in the marketplace.”
In the world of communication many a times confusion prevails around the

concept of brand identity and image. Brand identity concerns the strategic and
more core issue of what the brand is. It is the driver of marketing efforts
including product launches, extensions, and communications. All these acts
are essentially brand expressions. The brand manifests its identity in these
behaviours. External signs of brand – product, symbols, visual images,
communication, etc., - all have their roots in brand identity. They all emanate
from one single source. Identity is something that precedes all this. It
essentially deals with what is to be communicated, portrayed or expressed. It
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is signified. The visible actions/efforts that generally keep people busy are
essentially signifiers.
Appreciation of the difference between the signified and signifier is what

differentiates effective brand navigation from the ineffective one. Most of the
times, people responsible for brand management are just able to touch the
periphery and get trapped in the maze of less strategic issues concerning
brand management. This can be observed by examining how firms manage
campaigns. Many a times brand campaigns change. But along with them the
brand’s core is also torn and changed. Nothing gets carried over from old to
new campaigns. In fact if the campaigns are intended to promote the same
brand, something must remain constant. The epicentre or brand’s essence
must not change. The campaign change my permit freedom in message and
media tactics, but the brand essence or identity which inspires the campaigns
must remain constant, otherwise it could easily destroy what is intended as a
brand and what is received by the market as a brand.
The brand managers would not resort to subjective notions while providing
briefs to client servicing from the advertising agencies. Thus people in custody
of a brand may change, but still continuity could be maintained. The best
example of continuity is observable in the brand McDonald’s. The brand is
sold all over the world in different countries with highly heterogeneous social
and cultural environment. Since the brand has to connect with a diverse set of
audience like Chinese to French to Americans to Indians, it does not
completely give in to change. The communication execution does differ from
one country to another, yet the essence of is left untouched. The brand is a
great puller all over the world. This is the beauty of brand identity.
The concept of brand identity has been theorized to a great extent. Several
academicians and brand scholars have developed highly specialized models
to understand and articulate brand meaning to a product. Here, let me explain
two of the most popular models/views of thinking on brand identity, i.e. David
Aaker’s Brand Identity Model and Jean Noel Kapferrer’s Brand Identity Prism.
The Brand Identity Planning Model of David Aaker
The brand identity planning model provides a tool to understand, develop, and
use the brand identity construct. In addition to the brand identity itself, it
includes two other strategic brand components, (i) the strategic brand analysis
and (ii) the brand identity implementation system, which are discussed next.
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BRAND IDENTITY PLANNING MODEL- DAVID AAKER
STRATEGIC BRAND ANALYSIS
Customer Competitor Analysis Self Analysis

Analysis
Brand Image/Identity Existing brand image
Trends Strengths/Strategies Brand heritage
Motivation Vulnerabilities Strengths/Strategies
Unmet needs Positioning Organisation values
Segmentation
BRAND IDENTITY SYSTEMS
Extended
Core
Essence
Brand as Product Brand as Organisation Brand as Person Brand as Symbol

Product Scope Organisation Attributes Personality Visual imagery and
Product Attributes Local v/s Global metaphors
Quality/Value
Uses/Users
Country of origin
Value Proposition
Functional Emotional Self-Expressive Credibility
Brand-Customer Relationship
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Strategic Brand Analysis
To be effective, a brand identity needs to resonate with customers,

differentiate the brand from competitors, and represent what the organization
can and will do over time. Thus the strategic brand analysis helps the
manager to understand the customer, the competitors, and the brand itself
(including the organization behind the brand).
The customer analysis must get beyond what customers say to what lies
underneath what they do. Creative qualitative research is often useful toward
this end. Another challenge is to develop a segmentation scheme that can
drive strategy. To do this, the manager must discover which segmentation
variables have real leverage and understand the size and dynamics of each
segment.
The competitor analysis examines current and potential competitors to make

sure that the strategy will differentiate the brand and that communication
programs will break away from the clutter in a meaningful way. Studying
competitor strengths and strategies as well as positions can also provide
insight into the brand-building task.
The self-analysis identifies whether the brand has the resources, the
capability, and the will to deliver. The analysis needs to uncover strengths,
limitations, strategies, and values of the organization that is creating the
brand. Ultimately, a successful brand strategy needs to capture the soul of the
brand, and this soul resides in the organization.
Brand Identity
The figure provides an overview of brand identity and its related constructs.
Note that there are twelve categories of brand identity elements organized
around four perspectives – the brand as product (product scope, product
attributes, quality/value, use experience, users, country of origin), organization
(organizational attributes, local versus global), person (brand personality,
customer-brand relationships), and symbol (visual imagery/metaphors and
brand heritage). Although each category has relevance for some brands,
virtually no brand has associations in all twelve categories.
Note also that the brand identity structure includes an essence, a core
identity, and extended identity.
A good brand essence statement does not merely string a set of core identity
phrases together into a sentence, since this would provide little value beyond
the core identity. Instead, it provides a slightly different perspective while still
capturing much of what the brand stands for. The brand essence 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.
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The brand essence should have several characteristics. It should resonate
with customers and drive the value proposition. It should be ownable,
providing differentiation from competitors that will persist through time. And it
should be compelling enough to energize and inspire the employees and
partners of the organization. (Even an understatement such as “It simply
works better” or “Take a different road”, however, can be inspirational to those
who take it seriously and recognize its challenge.)
Strong brand essence statements usually have multiple interpretations that

make them re effective. For Nike the brand essence might be “Excelling,”
which could encompass such diverse components of the Nike identity as
technology, top athletes, aggressive personalities, the track shoe heritage,
and sub brands like Air Jordan, as well as customers who strive to excel. For
American Express, “Do more” expresses the thrust of the organization that
walks the extra mile, a product set that offers more than competitors, and a
customer base that is not satisfied with a conventional lifestyle but engages in
more and different activities.
The brand essence is distinct from a tagline. When searching for a brand
essence, it is counterproductive to evaluate candidates on whether they would
make good tagline. A brand essence represents the identity, and one of its
key functions to communicate and energize those inside the organization. In
sharp contrast, the tagline represents the brand position (for communication
goals), and its function is to communicate with the external audience. A brand
essence should be timeless or at least expected to be relevant for a long time
period, while a tagline may have a limited life. Further, a brand essence is
likely to be relevant across markets and products, whereas a tagline is more
likely to have a confined arena. Though it might seem efficient to have a brand
essence statement that also functions as a tagline, insisting that statement
candidates meet both criteria as diverting at best (and counterproductive at
worst).
Typically, the core brand identity will require from six to twelve dimensions in
order to adequately describe the brand’s aspiration. Because such a large set
is unwieldy, it is helpful to provide focus by identifying the core identity (the
most important elements of the brand identity). All dimensions of the core
identity should reflect the strategy and values of the organization, and at least
one association should differentiate the brand and resonate with customers.
The core identity is most likely to remain constant as the brand travels to new
markets and products – if customers perceive the brand according to the core
identity, the battle is won.
The core identity usually has two to four dimensions that compactly
summarize the brand vision. It often is useful, however, to provide even more
focus by creating a brand essence: a single thought that captures the soul of
the brand. In some cases, it is not feasible or worthwhile to develop a brand
essence, but in others it can be a powerful tool.
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The extended brand identity includes all of the brand identity elements that
are not in the core, organized into meaningful groupings. Often the core
identity is a terse description of the brand, and this terseness can generate
ambiguity; as a result, brand implementation decisions benefit from the texture
and completeness provided by the extended identity. Moreover, there are
useful elements of the extended identity (such as the brand personality and a
specification of what the brand is not) that do not usually fit comfortably into
the core identity.
Brand Identity Prism of Jean Noel Kapferrer
The Prism of Identity
A six – sided prism may represent brand identity diagrammatically:
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BRAND IDENTITY PRISM- KAPFERRER
PICTURE OF SENDER
Personality
Physique
TION
INTERNALISATION
EXTERNALISATION Culture
Relationship
Reflection
Self-Image
PICTURE OF RECEIVER
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Physique
A brand first has a physique – a combination of independent characteristics,

which may be either prominent (springing readily to mind when the brand is
mentioned) or dormant (though nevertheless distinguishable).
Cadbury’s chocolate evokes the picture of foil wrapped chocolate in a distinct

purple and white wrapper. Ford Ikon car spells out superior performance and
energy, Whirlpool Air Conditioner talks about ultra fast cooling etc.
Physique is the brand basis. Taking the analogy of a flower stem, without the
stem the flower dies – it is its independent tangible support. This is the
traditional basis of communication, corresponding to brand know-how and
standard positioning. It derives its features from certain key or prominent
attributes of the brand. Physique is a necessity, but not, of itself, sufficient,
forming only the first stage in brand construction.
Personality
A brand has a personality. It acquires a character. If, as often happens we

identify the brand with a person, we gradually form a picture of that person by
the way in which he speaks of products or services. Raymond is a
distinguished well-groomed man. Pepsi is a fun loving bubbly person. Dabur is
a trustworthy, old and dependable person.
Personality has been the brand focus since 1970. Numerous American
agencies have made it a prerequisite in all communication campaigns. Ted
Bates created a new USP (unique selling personality), while Grey Advertising
gave its own definition of brand personality. The Euro- RSCG agency made
physique and personality the two main pillars of all brand communication, and
considered these as the source of its style. The easy way to bestow
personality on a brand is to provide it with a spokesperson, a star, or an
animal. It is restrictive to summarize the brand as simply having a physique
and a character. As we shall see, power brands have further depths.
Culture
The brand has its own culture from which every product derives. The product
is the physical embodiment and vector of this culture. Culture implies a
system of values, a source of inspiration and brand energy. The cultural facet
relates to the basic principles governing the brand in its outward signs (that is,
products and communication). A deep - seated facet, it is the mainspring for
the brand. Amul is a brand that symbolizes a freedom- liberating culture with a
deep-rooted Indian philosophy. This culture becomes established not only in
its products, but also inherently in its advertising style.
Culture seems to both influence and infiltrate major brands (Beneton, Coca
Cola, Adidas, etc.). Advertising strategy has neglected this essential facet in
its insistence on mere personality. We shall see this when considering
retailers’ identity, too: the leading retailers are those which have personality,
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but also a culture. Mercedes personifies German values, with order and
strength prevailing. The three- box bodywork and overall symmetry
characterize the brand’s physique, while the Mercedes symbol on the front is
a further epitomization of order. Adidas is embedded in a collective culture,
unlike Nike’s or Reebok’s highlighting of the virtues of individualism, Adidas
linked to the values of collective sports (soccer, etc.). The cultural facet is an
essential one. It has only recently come to the fore, coinciding with a
realization of the link between brand and product.
Cultural associations are evoked in brand countries of origin. In Coca Cola we

see America, in IBM we see Wall Street, in Mitsubishi, we see Japan. A
product such as Mars, however, has somewhat lost its apparent roots in
becoming a totally international brand.
The cultural facet provides the link between brand and firm, particularly when
they bear the same name (e.g., IBM, Amul, Nestle). Its culture prevents Nestle
from becoming regarded solely as a provider of mouth – watering delicacies.
As a puritan and austere corporation it could not be otherwise; this would not
do. A brand’s degree of freedom is largely dependent on the corporate
culture, of which it becomes the most visible sign.
Relationship
A brand is a relationship. It often provides the opportunity for an intangible

exchange between persons. This is particularly true of brands in the service
sector and, as we shall later see, for retailers. The Axe brand name has an air
of mischief – an underlying sensual man-woman relationship permeates both
the products and their customer appeal, even though no personal presence
may be evident. Dabur is clearly a grandparent, where as Pepsi is a friend.
ICICI Bank is like a dependable trustworthy relation.
Reflection
A brand reflects a customers’ image. When asked for their views on such –
and- such a make of car, the consumer’s immediate reaction is to think of the
type of driver that it would most suit –youth, family man, executive or senior
citizen. There is often a confusion between this reflection and a brand’s
target. Target describes the brand’s potential purchasers or users. Reflection
is not necessarily the target, but the image of that target which the brand
offers to the public. It is a type of identification.
Though its reflection is restrcited (young people), Pepsi has a much wider
clientele. Such a paradox can be explained by adults’ identification with youth
values. Similarily, Lux’s reflection could be beautiful glamourous women, but
its target audience could be much wider setting aspirations for the larger
target audience.
The confusion between reflection and target still causes problems. Many
advertising managers fail to realize that the public cannot be targeted in a
simple, transparent way. This approach ignores the fact that the brand buyer
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does not want to be portrayed as he/she is, but as he/she wishes to be seen
as a result of being an adept of a particular brand. Brands are used by
consumers to build up and convey their own identity.They have an
emblematic value in the eyes of the beholder.
Thirty years ago, when David Ogilvy portrayed the man in the Hathaway shirt
as a one – eyed man, a sort of Brirtish colonel who was injured at El Alamein,
he did not mean that the Hathaway shirt target was this type of person.
Similarly, not all persons wearing Lacoste shirts play tennis. Tennis is not the
target market of Lacoste. It is its cultural root and a source of positive image
for people buying the brand.
Self-Image
The sixth facet of brand identity is customers’ self- image. If reflection is the
target’s outward mirror, the self – image is the internal miror. Through our
attitude toward certain brands, we develop a certain type of inner relationship
with ourselves.
Many Tata Indigo owners, for example are upgraders from the standard B
segment car. They are simply proving to themselves that they have the ability
to buy a 3 box car. Such a purchase may be inconsistent with their career
prospects, and to some extent, a gamble on their materialization. The brand,
therefore, acts as an obligatory motive for boosting the self ego. The brand
talks about ‘spoil yourself’ which is a massage to this individual’s ego.
Even if he is not the sporting type, the man who buys a Nike sees himswelf
inwardly as sporty and athletic.
These are the six facets which define brand identity and its potential
territory.The brand identity prism demonstrates that these facets form a
structured whole. The content of one facet echoes that of another. The prism
structure is derived from one basic concept- that the brand has a voice. A
brand does not exist unless it communicates. It would decline in strength if
allowed to remain silent and unused for too long. Since the brand has its own
means of referrring – when speaking of the products which it encompasses, or
endorsing the products which it promotes – it can therefore be analyzed like
any communication.
Rhetoric teaches us that speeches always convey a picture of the sender.

Likewise the case with products or shops; their type of communication allows
us to imagine who is speaking behind them –the sender. It is a figurative
process in the sense that, in the case of the brand (as opossed to the firm’s
direct voice.) the sender does not physically exist. Neverthless, customers,
when asked, can immediately describe the brand’s communicator – the one
who personifies the brand name. The physical and personality facets surround
this figurative sender. In focus groups they imagine and describe Mr. Pepsi or
Mr. Lacoste, the founder. Naturally they do not describe the real Mr. Lacoste,
but the one constructed by the communication.
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Every form of comunication also points to the presence of a recipient, as if a
certain type of person or audience were being addressed. The reflection and
self – image facets surround this figurative recipient, who in turn form as part
fo the brand identity. The final two facets – relationship and culture – are the
bridging points between sender and recipient.
The identity prism also incorporates a vertical division. The facets to its left –
physique, relationship, and expression. All three are visible facets. The facets
to the right – personality , culture, and self- image – are those incorporated
within the brand itself within its spirit.
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CHAPTER 5
ARTICULATING BRAND IDENTITY

Consumer Insights
Brand Positioning
Brand Identity


Marketing Programs


Having drawn out an identity for the brand, it is now essential to ‘express’ the
identity appropriately. An identity otherwise is simply a set of words which are
sometimes very intangible in nature. If not articulated correctly, they would risk
not being understood at all. To articulate the identity, you could use an array
of ‘brand elements’ such as name, logo, packaging, character, jingles, slogan
etc. All these try and express the brand’s inner identity.
In choosing brand elements, in general, there are six criteria one must adhere
to.
1. Memorability
2. Meaningfulness
3. Likeability
4. Transferability
5. Adaptability
6. Protectability
The first three criteria – memorability, meaningfulness, and likability – can be

characterized as “brand building” in nature and concern how brand equity can
be built through the judicious choice of a brand element. The latter three,
however, are more “defensive” in nature and are concerned with how the
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brand equity contained in a brand element can be leveraged and preserved in
the face of different opportunities and constraints. The following sections
briefly consider each of these general criteria.
Memorability
A necessary condition for building brand equity is achieving a high level of

brand awareness. Toward that goal, brand elements can be chosen that are
inherently memorable and therefore facilitate recall or recognition in purchase
or consumption settings.
In other words, the intrinsic nature of certain names, symbols, logos, and the
like – their semantic content, visual properties, and so on. – may make them
more attention getting and easy to remember and therefore contribute to
brand equity. For example, naming a brand of food “Pilsbury” and reinforcing it
with a doughboy as a mascot with a distinctive kitchen hat is likely to stick in
the minds of consumers.
Meaningfulness
Besides choosing brand elements to build awareness, brand elements can

also be chosen whose inherent meaning enhances the formulation of brand
associations. Brand elements may take on all kinds of meaning, varying in
descriptive, as well as persuasive content. Two particularly important
dimensions or aspects of the meaning of a brand element are the extent to
which they convey the general information about the product category and
specific information about particular attributes and benefits of the brand.
In terms of persuasive meaning, to what extent do the brand elements

suggest something about the particular kind of product that the brand would
likely be, for example, in terms of key attributes or benefits? Does it suggest
something about a product ingredient or the type of person who might use the
brand?
Likeability
The associations suggested by a brand element may not always be related to

the product. Thus, brand elements can be chosen that are rich in visual and
verbal imagery and inherently funny and interesting. Independent of its
memorability and meaningfulness, how aesthetically appealing do consumers
find the brand element? Is it inherently likeable, visually, verbally, and in other
ways? In other words, independent of the particular product or service, how
much would consumers like the brand element?
In terms of these first three criteria, a memorable, meaningful and likeable set
of brand elements offers many advantages. Because consumers often do not
examine much information in making product decisions, it is often desirable
that brand elements be easily recognized and recalled and inherently
descriptive and persuasive. Moreover, memorable or meaningful brand
names, logos, symbols, and so on reduce the burden on marketing
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communications to build awareness and link brand associations. The different
associations that arise from the likeability and appeal of the brand elements
also may play a critical role in the equity of a brand, especially when few other
product-related associations exist. Often, the less concrete the possible
product benefits are, the most important is the creative potential of the product
of the brand name and other brand elements to capture intangible
characteristics of a brand.
Transferability
The fourth general criterion concerns the transferability of the brand element –
in both a product category and geographic coverage. First, to what extent can
the brand element add to the brand equity of new products sharing the brand
elements introduced, either within the product class or across product
classes? In other words, how useful is the brand element for the line or
category extensions? In general, the less specific the name, the more easily it
can be transferred across categories. For example, ‘Lifestyle’ connotes an
attitude or a way of life, and therefore as a brand can be appropriate for a
variety of different types of products, whereas Shopper’s Stop obviously does
not permit the same flexibility.
Second, to what extent does the brand element add to brand equity across
geographic boundaries and market segments? To a large extent this depends
on the cultural content and linguistic qualities of the brand element. For
example, one of the main advantages of non-meaningful names (e.g., Exxon)
is that they translate well into other languages since they have no inherent
meaning. The mistakes that even top companies have made in translating
their brand names, slogans, and packages into other languages and cultures
over the years have become legendary.
Adaptability
The fifth consideration concerns the adaptability of the brand element over
time. Because of changes in consumer values and opinions or simply
because of a need to remain contemporary, brand elements often must be
updated over time. The more adaptable and flexible the brand element, the
easier is to update it. For example, logos and characters can be given a new
look or a new design to make them appear more modern and relevant.
Protectability
The sixth and final general consideration concerns the extent to which the
brand element is protectable – both in a legal and competitive sense. In terms
of legal considerations, it is important to (1) choose brand elements that can
be legally protected on an international basis, (2) formally register them with
the appropriate legal bodies, and (3) vigorously defend trademarks from
unauthorized competitive infringement. The necessity of legally protecting the
brand is dramatized by the billions of dollars in losses in the United States
alone from unauthorized use of patents, trademarks, and copyrights.
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A closely related consideration is the extent to which the brand element is
competitively protectable. Even if a brand element can be protected legally, it
still may be the case that competitive actions can take away much of the
brand equity provided by the brand elements themselves. If a name, package,
or any other attribute is too easily copied much of the uniqueness of the brand
may disappear.
Options And Tactics For Brand Elements
The value of choosing brand elements strategically to build brand equity can
be seen by considering the advantages of having chosen “Apple” as the name
for a personal computer. Apple was a simple but well–known word that was
distinctive in the product category–factors facilitating the development of
brand awareness. The meaning of the name also gave the company a
“friendly shine” and warm brand personality. Moreover, the name could be
reinforced visually with a logo that could easily transfer across geographic and
cultural boundaries. Finally, the name could serve as a platform for sub
brands (for example, as with the Macintosh), aiding the introduction of brand
extensions. Thus, as the Apple example illustrates, the judicious choice of a
brand name can make an appreciable contribution to the creation of brand
equity.
What would an ideal brand element be like? Consider brand names perhaps
the most central of all brand elements. Ideally, a brand name would be easily
remembered, highly suggestive of both the product class and the particular
benefits that served as the basis of its positioning, inherently fun or
interesting, rich with creative potential, transferable to a wide variety of
product and geographic settings, enduring in meaning and relevant over time,
and strongly protectable both legally and competitively.
Unfortunately, it is difficult to choose a brand name – or any brand element,

for that matter – that would satisfy all of these different criteria. For example,
as noted earlier, the more meaningful the brand name, the more likely it is that
the brand name will not be very transferable to other cultures due to
translation problems. Moreover, brand names are generally less adaptable
over time. Because it is virtually impossible to find one brand element that will
satisfy all the choice criteria, multiple brand elements are typically employed.
The following sections outlines in detail the major considerations for each type
of brand element. The chapter concludes by discussing how to put all of this
together to design a set of brand elements to build brand equity.
Brand Names
The brand name is a fundamentally important choice because it captures the

central theme or key associations of a product in a very compact and
economical fashion. Brand names can be an extremely effective shorthand
means of communication. Whereas the time it takes consumers to
comprehend marketing communications can range from a half a minute (for
an advertisement) to potentially hours (for a sales call), the brand name can
50
be noticed and its meaning registered or activated in memory within just a few
seconds.
The brand name becomes so closely tied to the product in the minds of
consumers, that it becomes the most difficult brand element for marketers to
subsequently change. Consequently, brand names are often systematically
researched before being chosen.
Logos and Symbols
Although the brand name typically is the central element of the brand, visual
brand elements often play a critical role in building brand equity, especially in
terms of brand awareness. Logos have a long history as a means to indicate
origin, ownership, or association. For example, families and countries have
used logos for centuries to visually represent their names (for example, the
Swastika used for the Nazis).
There are many types of logos, ranging from corporate names or trademarks
(that is, word marks) written in a distinctive form, on one hand, to entirely
abstract logos, which may be completely unrelated to the word mark,
corporate name, or corporate activities, on the other hand. Examples of
brands with strong word marks (and no accompanying logo separates it from
its name) include Coca–Cola, Kit–Kat. Examples of abstract logos include the
Mercedes star, Nike swooshes, and the Olympic rings. These non–word mark
logos are also often called symbols.
Many logos fall between these two extremes. Often logos are devised as
symbols to reinforce or embellish the brand meaning in some way. Some
logos are literal representations of the brand name, enhancing brand
awareness (for example, the Cadbury’s milk canisters, Red Cross, and Apple
logos). Logos can be quite concrete or pictorial in nature (such as, Reliance
logo, SBI logo). Certain elements of the product or company can become a
symbol (for example, McDonald’s golden arches)
The importance of logos and symbols can be seen from the results of a study
that asked 150 consumers their impressions of companies based on their
names alone and also when their logos were present. Clearly, logos have
meaning and associations that change consumer perceptions of the company.
Like brand names, logos can acquire associations through their inherent
meaning as well as through the supporting marketing program. In terms of the
inherent meaning, even fairly abstract logos can have different evaluations
depending on the shapes involved. As with names, abstract logos can be
quite distinctive and thus recognizable. Nevertheless, because abstract logos
may lack the inherent meaning present with a more concrete logo, one of the
dangers of an abstract logo is that consumers may not understand what the
logo is intended to represent without a significant marketing initiative to
explain its meaning.
Characters
51
Characters represent a special type of brand symbol –one that takes on
human or real–life characteristics. Brand characters typically are introduced
through advertising and, can play a central role in these and subsequent ad
campaigns and package designs. Like other brand elements, broad
characters come in many different forms. Some brand characters are
animated (for example, Pillsbury’s Fresh Doughboy, the Amul Moppet),
whereas others are live-action figures (like the Marlboro Cowboy or Ronald
McDonald)
Brand characters can provide a number of brand equity benefits. Because

they are often colourful and rich in imagery, they tend to be attention getting.
Consequently, brand characters can be quite useful for creating brand
awareness. Brand characters can help brands break through the marketplace
clutter as well as help to communicate a key product benefit.
Slogans
Slogans are short phrases that communicate descriptive or persuasive

information about the brand. Slogans often appear in advertising but can play
an important role on packaging and in other aspects of the marketing
program. For example, “Hungry Kya?” for Dominoes Pizza or “Thanda Matlab
Coca Cola”. Slogans are powerful branding devices because, like brand
names, they are an extremely efficient and quick means to build brand equity.
Slogans can function as useful “hooks” or “handles” to help consumers grasp
the meaning of a brand in terms of what the brand is and what makes it
special. They are an indispensable means of summarizing and translating the
intent of a marketing program in a few short words or phrases. Slogans are
essentially the closest you can get to the brand identity, since they are a
translation of the brand’s identity in some ways.
Slogans often become closely tied to advertising campaigns and can be used
as tag lines to summarize the descriptive or persuasive information conveyed
in the ads. For example, DeBeers diamonds’ “A Diamond Is Forever“ tag line
communicates the intended ad message that diamonds bring eternal love and
romance and never lose value. Slogans can be more expansive and more
enduring, however, than just ad tag lines. Campaign–specific taglines may
reinforce the message of a particular campaign instead of the brand slogan for
a certain period of time. For example, Nike has used ad tag lines such as “I
Can” and “What Are You Getting Ready For?” for ad campaigns instead of
their well–known brand slogan, ”Just Do It.” Such substitutions can be a
means to give the brand slogan a rest so that it remains fresh.
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! For example, the distinct Titan
tune or the Nirma tune.
52
Jingles can be thought of as extended musical slogans and in that sense can
be classified as a brand element. Because of their musical nature, however,
jingles are not nearly as transferable as other brand elements. Jingles can
communicate brand benefits, but they often convey product meaning in a non-
direct and fairly abstract fashion given their musical foundation. The potential
associations that might occur for the brand from jingles are probably most
likely to relate to feelings and personality and other such intangibles. Jingles
are perhaps most valuable on terms of enhancing brand awareness, Often,
the jingle will repeat the brand name in clever and amusing ways that allow
consumers multiple encoding opportunities. Because of their catchy nature,
consumers are also likely to mentally rehearse or repeat the jingle even after
seeing or hearing the ad, providing even additional encoding opportunities
and increasing memorability. A classical example of the power of the jingle
was in the Pepsodent toothpaste’s jingle of late 1960,s “You will wonder
where the yellow went?” referring to the yellow stains removing property of the
toothpaste. However the reason why Pepsodent toothpaste lost was because
the consumers who were loyal to sweet taste of Colgate toothpaste did not
like Pepsodent’s taste.
Packaging
Packaging involves the activities of designing and producing containers or

wrappers for a product. From the perspective of both the firm and consumers,
packaging must achieve a number of objectives:
o Identify the brand

o Convey descriptive and persuasive information.
o Facilitate product transportation and protection
o Assist at – home storage
o Aid product consumption
To achieve the marketing objectives for the brand and satisfy the desires of
consumers, the aesthetic and functional components of packaging must be
chosen correctly. Aesthetic considerations relate to a package’s size and
shape, material, color, text and graphics. Innovations in printing processes
now permit eye–catching and appealing graphics that convey elaborate and
colorful messages on the package at the ”moment of truth “ at the point of
purchase.
Packaging can have important brand equity benefits for a company. Often,
one of the strongest associations that consumers have with a brand relates to
the look of the packaging. For example, if you ask the average consumer what
comes to mind when they think of Parachute coconut oil, a common response
is its “blue bottle.” The package appearance can become an important means
of brand recognition at the shop display. Moreover, the information conveyed
or inferred from the package can build or reinforce valuable brand
associations.
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CHAPTER 6
EXECUTING BRAND IDENTITY

Consumer Insights
Brand Positioning
Brand Identity


Marketing Programs


54
Brand Building Strategy
In principle, the brand building strategy generally follows from the marketing
strategy. But in reality, the brand building efforts are most often made before
an advertisement is to be released or at the product manager’s level, while
positioning is done. However, brand building, though it may often be relegated
to a lower status, does provide as an umbrella or binder between the other P’s
of the marketing strategy. Consider the diagram below:
Scanning the Environment
Market Segmentation and TG

Selection
Positioning
Marketing Strategy
Product Price Place Promotion
Brand Building Strategy
Product Strategy
The product itself is at the heart of brand building because it is the primary
influence on what consumers experience with a brand, what they hear about a
brand from others, and what the firm can tell customers about the brand in
their communications. In other words, at the heart of a great brand is
invariably a great product. Designing and delivering a product or service that
fully satisfies consumer needs and wants is a prerequisite for successful
marketing, regardless of whether the product is a tangible good, service, or
organization. To create brand loyalty, consumers’ experiences with the
product must at least meet, if not actually surpass, their expectations.
Perceived Product Quality and Value
Perceived quality has been defined as customers’ perception of the overall

quality of superiority of a product or a service relative to relevant alternatives
and with respect to its intended purpose. Thus, perceived quality is a global
assessment based on customer perceptions of what constitutes a quality
product and how well the brand rates on those dimensions. Achieving a
55
satisfactory level of perceived quality has become more difficult as continual
product improvements over the years have led to heightened consumer
expectations regarding the quality of products.
o Performance: Levels at which the primary characteristics of the product

operate (e.g., low, medium, high, or very high)
o Features: Secondary elements of a product that complement the
primary characteristics
o Conformance quality: Degree to which the product meets specifications
and is absent of defects.
o Reliability: Consistency of performance over time and from purchase to
purchase
o Durability: Expected economic life of the product
o Serviceability: Ease of servicing the product
o Style and design: appearance or feel of quality
Consumer beliefs along these dimensions often underlie perceptions of the

quality of the product that, in turn, can influence attitudes and behavior toward
a brand.
Pricing Strategy
Price is the one revenue- generating element of the traditional marketing mix,
and price premiums are one of the most important brand equity benefits of
creating brand awareness and strong, favorable, and unique brand
associations.
Consumer Price Perceptions
The pricing policy for the brand can create associations in consumers’ minds
to relevant price tier or level for the brand in the category, as well as to its
correspondence price volatility or variance (in terms of the frequency or
magnitude of discounts, etc.). In other words, the pricing strategy can dictate
how consumers categorize the price of the brand (for example, as low,
medium, or high priced) and how firm or flexible consumers see that price (as
frequently, or infrequently discounted).
Consumers often rank brands according to price tiers in a category. For

example, in the Shirts market, Arrow is perceived as a premium brand
followed by Allen Solly and Van Heusen. Peter England is clearly perceived
as an affordable value for money brand.
Besides these descriptive “mean and variance” price perceptions, consumers

may have price perceptions that have more inherent product meaning. In
particular, in many categories, consumers may infer the quality of a product
on the basis of its price. As noted earlier, consumers may combine their
perceptions of the quality of the product with their perceptions of the price of
the product to arrive at an assessment of its perceived value. Consumer
associations of perceived value are often an important factor in their
decisions. Accordingly, many marketers have adapted value- based pricing
56
strategies - attempting to sell the right product at the right price – to better
meet consumer wishes, as described in the next section.
Channel Strategy
The manner by which a product is sold or distributed can have a profound

impact on the resulting brand equity and ultimate sales success of the brand.
Marketing channels are defined as “sets of interdependent organizations
involved in the process of making a product or service available for use or
consumption.” Channel strategy involves the design and management of
intermediaries such as wholesalers, distributors, brokers, and retailers. This
section considers how channel strategy can contribute to brand building.
Channel Design
A number of possible channel types and arrangements exist. Broadly, they

can be classified into direct and indirect channels. Direct channels involve
selling through personal contacts from the company to prospective customers
by mail, phone, electronic means, in – person visits, and so forth. Indirect
channels involve selling through third party intermediaries such as agents or
broker representatives, wholesalers or distributors, and retailers or dealers.
Much research has considered the pros and cons of selling through various
channels. Although the decision ultimately depends on the relative profitability
of the different options, some more specific guidelines have been proposed.
Pull and Push Strategies
Beside indirect means of image transfer, retailers can directly affect the equity
of the brands they sell. The actions retailers take in stocking, displaying, and
selling products can enhance or detract from brand equity, suggesting that
manufacturers must take an active role in helping retailers add value to their
brands.
Yet, at the same time, a battle has emerged in recent years between
manufacturers and retailers making up their channels of distribution. Because
of factors such as greater competition for shelf space among what many
retailers feel are increasingly undifferentiated brands, retailers have gained in
power and are now in a better position to set the terms of trade to the
manufacturers. Increased power means that retailers can command more
frequent and lucrative trade promotions. Increasingly, supermarket retailers
are demanding compensation to stock a new brand in the form of cash
payments for the shelf space itself (slotting allowances), introductory deals
(such as, one free with three), postponed billing or extended credit (dating),
payment for retailer advertising or promotion in support of the new brand, and
so on. Even after stocking brands, retailers can later require generous trade
promotions to keep them on the shelf. Outside the supermarket, department
stores are requiring that suppliers guarantee their stores ’profit margin’ and
insist on cash rebates if the guarantee is not met. For all such reasons,
manufacturers are vulnerable to retailers’ actions.
57
Retailers have thus increased their power over manufacturers. One way for
manufacturers to regain some of their lost power is by creating strong brands
through some of the brand building tactics described in this book, for example,
by selling innovative and unique products-properly priced and advertised –that
consumers demand. In this way, consumers may ask or even pressure
retailers to stock and promote manufacturer’s products. By devoting marketing
efforts to the end consumer, a manufacturer is said to employ a pull strategy,
since consumers use their buying power and influence on retailers to “pull” the
products through the channel. Alternatively, marketers can devote their selling
efforts to the channel members themselves, providing direct incentives for
them to stock and sell products to the end consumer. This approach is called
a push strategy, since the manufacturer is attempting to reach the consumer
by “pushing” the product through each step of the distribution chain.
Although certain brands seem to emphasize one strategy more than another
(like, push strategies are usually associated with more selective distribution,
and pull strategies with broader, more intensive distribution, in general), the
most successful branding programs often skilfully blend push and pull
strategies.
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CHAPTER 7
EXTENDING BRAND IDENTITY
Consumer Insights
Brand Positioning
Brand Identity


Marketing Programs


Brand Extensions
HLL markets a large number of brands. Most of its brands have been around
for a long period of time, and have evolved over the years to a great extent.
Lifebuoy, which was earlier launched as a low-end carbolic soap has today
evolved into a brand, which is marketed on the ‘health’ platform instead. It has
various products under its brand name today. This example illustrates a typical
growth plan that a brand follows in the present day market conditions. Today,
more and more companies are launching new products and getting into newer
markets.
When a firm introduces a new product, it has three main choices as to how to
brand it:
1. It can develop a new brand, individually chosen for the new product
2. It can apply, in some way, one of its existing brands
3. It can use a combination of a new brand with an existing brand.
59
A brand extension is when a firm uses an established brand name to introduce
a new product
(approaches 2 or 3). When a new brand is combined with an existing brand
(approach 3), the brand extension can also be called a sub-brand. An existing
brand that gives birth to a brand extension is referred to as the parent brand. If
the parent brand is already associated with multiple products through brand
extensions, then it may also be called a family brand.
Brand extensions can be broadly classified into two general categories:
Line Extensions
Line extension: The parent brand is used to brand a new product that targets a
new market segment within a product category currently served by the parent
brand. A line extension often involves a different flavor or ingredient variety, a
different form or size, or a different application for the brand. For example,
Bisleri launching in different sizes of bottles, or Sunsilk launching in different
colours of shampoo or Rasna launching in different flavours of soft drinks. Line
extension strategies suggest that a company is entering into an existing
product category by using the same brand name, through innovations in colour,
size, flavour, form etc. The two things, which remain constant in a line
extension strategy, are the product category, and the brand name. What is
variable are:
o Product Size: Pepsi Can- Pepsi 200ml- Pepsi 1litre-Pepsi 1.5litre
o Colour: Sunsilk Pink- Sunsilk Black- Sunsilk Yellow
o Flavours: Mirinda Orange- Mirinda Lemon
o Ingredient: Colgate CDC-Colgate Total- Colgate Whitening- Colgate
Herbal
o Form: Vim Bar- Vim Liquid- Vim Powder
Most new products are line extensions-typically 80 percent to 90 percent in any

one year. Moreover, many of the most successful new products, as rated by
various sources, are extensions (examples: Tata Indigo car, Nokia cell phones,
LG Consumer Care)
Category Extensions versus Brand Extensions
Category extension: The parent brand is used to enter a different product

category from that currently served by the parent brand (for example, Denim).
Consider the examples below:
o LG - Televisions, Refrigerators, Microwave Ovens, Air-conditioners,

Consumer Products
o Ponds - Cold Cream, Talc, Lotion, Face Wash
o Amul - Butter, Cheese, Condensed Milk, Chocolates, Ice Cream
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Several companies prefer brand extensions since there is an unambiguous
shift towards leveraging the brand strategy both for seeking growth within the
category and outside.
Evaluating Brand Extension Opportunities
Academic research and industry experience have revealed a number of

principles concerning the proper way to introduce brand extensions. Brand
extension strategies must be carefully considered by systemically following
the following steps. Managerial judgment and consumer research should be
employed to help make each of these decisions.
1. Define Actual and Desired Consumer Knowledge about the Brand
It is critical to fully understand the depth and breadth of awareness of the

parent brand and the strength, favourability, and uniqueness of its
associations. Moreover, before any extension decisions are contemplated, it is
important that the desired knowledge structures have been fully articulated.
Profiling actual and desired knowledge structures help to identify possible
brand extensions as well as to guide decisions concerning their likely success.
In evaluating an extension, a company must understand where it would like to
take the brand in the long run. Because this introduction of an extension
potentially changes brand meaning, consumer response to all subsequent
marketing activity may be affected as a result.
2. Identify Possible Extension Candidates
With respect to consumer factors when identifying potential brand extensions,

marketers should consider parent brand associations-especially as they relate
to brand positioning and core benefits-and product categories that might seem
to fit with that brand image in the minds of consumers. Possible category
extension candidates can be generated through managerial brainstorming
sessions as well as consumer research Although consumers are generally
better able to react to an extension concept than to suggest one, it still may be
instructive to ask consumers what products the brand should consider offering
if it were to introduce a new product. One or more associations can often
serve as the basis of fit. Consider the diagram below:
61
Ready To Eat
Fast food
Fast food
restaurant
Toys
Kids
Amusement
Maggi Park/Club
2 min Instant Food
Games
Instant Rice
Dishes
Chinese
Soups
3. Evaluate the Potential of the Extension Candidate
In forecasting the success of a proposed brand extension, it is necessary to

assess through judgement and research – the likelihood that the extension
would realize the advantages and avoid the disadvantages of brand
extensions. As with any new product, analysis of consumer, corporate, and
competitive factors can be useful.
Consumer Factors
Evaluating the potential success of a proposed brand extension requires an

assessment of its ability to achieve its own brand equity, as well as the
likelihood of it affecting the existing brand equity of the parent brand. First,
marketers must forecast the strength, favourability, and uniqueness of all
associations to the brand extension. In other words, what will be the salience,
favourability, or uniqueness of parent brand associations in the proposed
extension context? Similarly, what will be the strength, favourability, and
uniqueness of any other inferred associations?
To narrow down the list of possible extensions, consumer research is often

needed. Consumers may be probed directly (like "How well does the
proposed extension fit with the parent brand?" or "Would you expect such a
new product from the parent brand?"). Consumers may even be asked what
products they believe are currently attached to the brand: If a majority of
62
consumers believe a proposed extension product is already being sold under
the brand, then there would seem to be little risk involved in introducing it, at
least in terms of initial consumer reaction. To better understand consumers'
perceptions of a proposed extension, consumer research is often employed
using open-ended associations (for example, "What comes into your mind
when you think of the brand extension?" or "What are your first impressions
on hearing that the parent brand is introducing the extension?") as well as
ratings scales based on reactions to concept statements.
Several common pitfalls must be avoided when evaluating, brand extension

potential. One major mistake in evaluating extension opportunities is failing to
take all of consumers' brand knowledge structures into account. Often
marketers mistakenly focus on one or perhaps a few brand associations as a
potential basis of fit and ignore other, possibly more important, brand
associations in the process. For example, when Ponds introduced their
toothpaste on the association of ‘freshness’, the brand failed, invariably
because other more overpowering associations were that of ‘floral’, ‘talc’ and
‘feminine’ which made a toothpaste seem inappropriate.
Another major mistake in evaluating brand extensions is overlooking how

literal consumers can be in evaluating brand extensions. Although consumers
ultimately care about benefits, they often notice and evaluate attributes -
especially concrete ones -in reacting to an extension. Brand managers,
though, tend to focus on perceived benefits in predicting consumer reactions
and, as a result, may overlook some potentially damaging attribute
associations.
Corporate and Competitive Factors
Marketers must not only take a consumer perspective in evaluating a

proposed brand
extension but must also take a broader corporate and competitive
perspective. How
effectively are the corporate assets leveraged in the extension setting? How
relevant
are existing marketing programs, perceived benefits, and target customers in
the
extension context? What are the competitive advantages to the extension as
perceived
by consumers and possible reactions initiated by competitors as a result?
Too many extension products and strongly entrenched competition can put a
strain on company resources.
4. Design Marketing Programs to Launch Extension
Often extensions are used as a shortcut means of introducing a new product,

and insufficient attentions paid to developing, a branding and marketing
strategy that will maximize the equity of the brand extensions as well as
enhance the equity of the parent brand. As in the case with a new brand,
63
building brand equity for a brand extension requires choosing brand elements,
designing the optimal marketing program to launch the extension, and
leveraging secondary associations.
Choosing Brand Elements
By definition, the brand extension retains one or more elements from an

existing brand. Marketers should realize that brand extensions do not
necessarily have to leverage only a brand name but can use other brand
elements too.
In some cases, packaging is such a critical component of equity for the brand
that it is hard to imagine an extension without the same package design
elements. Brands in such cases are in a real dilemma because if they choose
to use the same type of packaging, they run the risk that the extension will not
be well distinguished. On the other hand, if they choose to use a different type
of packaging, a key source of brand equity may be left behind.
Thus, a brand extension can retain or modify one or more brand elements
from the parent brand as well as adopt its own brand elements.
Designing Optimal Marketing Program
The marketing program for a brand extension must consider the same
guidelines in building brand equity. In terms of designing the supporting
marketing program, product – related associations often must be created,
consumer perceptions of value must guide pricing decisions, distribution
strategies must blend push and pull considerations, and marketing
communications must be integrated by mixing and matching communication
options.
In terms of properly positioning a brand extension, the less similar the

extension is to the parent brand, the more important it typically is to establish
necessary and competitive points of parity. The points of difference for a
category extension in many cases directly follow from the points of difference
for the parent brand and are easily perceived by consumers. Thus, when Ivory
extended into shampoo and conditioners, its key “gentleness’ points of
difference presumably transferred easily. It would seem that the bigger
challenge would have been to reach parity in the minds of consumers with
category considerations related to glamour and how the shampoo made one
look and feel. Thus, with category extensions, points of parity are often critical.
With line extensions, on the other hand, it is often the case that a new
association has to be created that can serve as an additional point of
difference and help to distinguish the extension from the parent brand too.
For line extensions, it is important that consumers understand how the new
product relates to existing products in order to minimize possible
cannibalisation or confusion.
Leveraging Secondary Brand Associations
64
In general, brand extensions will often leverage the same secondary
associations as the parent brand, although there may be instances in which
competing in the extension category requires some additional fortification
such that linking to other entities may be desirable. A brand extension differs
in that, by definition, there is always some leveraging of another brand or
company. The extent to which these other associations become linked to the
extension, however, depends on the branding strategy that is adopted and
how the extension is branded. As noted earlier, the more common the brand
elements and the more prominence they receive, the more likely it is that
parent brand associations will transfer.
Evaluate Extension Success and Effects on Parent Brand Equity
The final step in evaluating brand extension opportunities involves assessing

the extent to which an extension is able to achieve its own equity as well as
contribute to the equity of the parent brand. A number of decisions have to be
made concerning the introduction of a brand extension, and a number of
factors will affect the brand's success. To help interpret that success, brand
tracking based on the customer-based brand equity model or other key
measures of consumer response can be employed, centered on both the
extension and the parent brand as a whole.
Types of Brand Extension Strategies
1. Product Branding
Product Branding is one extreme of the branding continuum. The concept of

singularity applies in this case. In this type of a strategy, the brand is
promoted exclusively so that it acquires its own identity and image. The thrust
is on making the brand acquire its own set of associations and stand on its
own. The company brand name is not emphasized upon and the brand gains
no benefits from the company name. For example, companies such as P&G
or HLL follow this kind of strategy. Consumers have no idea that the brand is
owned by a P&G or an HLL.
P&G
Ariel Tide Vicks Pantene Whisper
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2. Line Branding
Line branding essentially starts with one product to cater to a consumer

group, and later extends on to other products to cater to the needs of
the same customer group. Complementary products eventually
combine to form a complete whole. The products in the line draw their
identity from the main brand. Marketing products as a line under a
common brand improves the brands marketing power rather than
selling them as individual brands. For example, Lakme consumers felt
the need to have other beauty related products other than lipsticks, so
the brand now encompasses lotions, eye make up, face make up, nail
polishes etc.
LAKME
Lakme Lakme Lakme Lakme

Lipsticks Moisturisers Beauty Cleansers
Salons
“Source of Radiant Beauty”
3. Range Branding
Line branding is restrictive since it restricts the brands extension into

nearby territories of complementary products. Range branding is not
restrictive, where the brand can move beyond product
complementarities. Products however, emanate out of some common
competence or expertise. All the products share a common promise,
which stems from the firm’s or range brand’s area of competence. One
of the benefits of a range brand strategy is the formation of brand equity
on a common competence. Himalaya Drug
Ayurveda
Health Care Body Care Ayurveda Skin Care
66
4.Umbrella Branding
Umbrella branding is on the other end of the continuum, where a single

brand name is used on all products. Companies such as LG, Philips,
Mitsubishi all follow this strategy. Investing in a single brand is less
costly than trying to build a number of brands. By leveraging a common
name across a variety of products, the brand distributes its investment.
LG
Televisions
Microwaves Refrigerators Washing Consumer
Machines Products
5. Source/Double Branding
Source branding combines the firm’s name with the product brand
name. It is a hybrid of umbrella brand and product brand strategy. The
product is given a brand name and it is combined with the name of the
firm. Bajaj is the name of the firm, and Pulsar is the name of the
motorcycle. Hence Bajaj Pulsar is the final brand name. Both the names
enjoy equal status. By doing this, the firms name is also gaining equity,
and secondly, the product also stands to benefit from the parent brand.
Maruti
Maruti 800
Maruti Alto Maruti Zen Maruti Wagon R Maruti
Baleno
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6. Endorsement Branding
Endorsement branding is a modified version of double branding, where

the product brand name becomes more significant, and the company
brand name becomes less significant. The umbrella brand is made to
play an indirect role of passing on certain common generic
associations. It is only mentioned as an endorsement to the product
brand.
Cadbury’s
Cadbury’s
Eclairs Cadbury’s Perk Cadbury’s Cadbury’s Cadbury’s
Dairy Milk Five Star Crackle
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CHAPTER 8
REVIEWING BRAND IDENTITY
Consumer Insights
Brand Positioning
Brand Identity


Marketing Programs


Brand Equity
Having built the brand, it is essential now to understand the concept of brand
equity and its importance in keeping a brand strong over longer period of time.
Different authors have defined brand equity differently. For example:
Brand Equity is a set of brand assets and liabilities linked to a brand, its name
and symbol, that add to or subtract from the value provided by a product or
service to a firm and/or to the firm’s customers (Aaker, 1991)
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 defined in terms of marketing effects uniquely attributable to

the brands- for example, when certain outcomes result from the marketing of
a product or service because of its brand name that would not occur if the
same product or service did not have a name (Keller, 1993)
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In general, to understand brand equity, one must essentially understand what
the consumer thinks of your brand and what kind of knowledge structure
exists in the consumer’s mind.
Keller proposed the Customer Based Brand Equity Model (CBBE Model) to
try and understand brand equity from the perspectives of the consumer-
whether it is an individual or an organization. Understanding the needs and
wants of consumers and devising products and programs to satisfy them are
at the heart of successful marketing. In particular, two fundamentally important
questions faced by marketers are: ‘what do different brands mean to
consumers?’ and ‘How does the brand knowledge of consumers affect their
response to marketing activity?’
The basic premise of the CBBE model is that the power of the brand lies in
what customers have learned, felt, seen, and heard about the brand as a
result of their experiences over time. In other words, the power of a brand lies
in what resides in the minds of customers. The challenge for marketers in
building a strong brand is ensuring that customers have the right type of
experiences with products and services and their accompanying marketing
programs so that the desired thoughts, feelings, images, beliefs, perceptions,
opinions, and so on become linked to the brand.
Building and evaluating a strong brand, according to the CBBE model, can be
thought of in terms of a sequence of steps, in which each step is contingent
on successfully achieving the previous step. All the steps involve
accomplishing certain objectives with customers- both existing and potential.
The steps are as follows:
1. Ensure identification of the brand with customers and association of the

brand in customers’ minds with a specific product class or customer
need.
2. Establish finally the totality of brand meaning in the minds of customers
by strategically linking a host of tangible and intangible brand
associations with certain properties.
3. Elicit the proper customer response to this brand identification and
brand meaning.
4. Convert brand response to create an intense, active loyalty relationship
between customers and the brand
The four steps can be represented in the form of a model as follows:
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Relationship
Judgement Feeling
Performance Imagery
Salience
These four steps represent a set of fundamental questions that customers

invariably ask about brands- at least implicitly if not even explicitly- as follows
(with corresponding brand steps in parentheses).
1. Who are you? (brand identity)

2. What are you? (brand meaning)
3. What about you? What do I think or feel about you? (brand
response)
4. What about you and me? What kind of association and how much
of a connection
would I like to have with you? (brand relationship)
There is an obvious ordering of the steps in this “branding ladder,” from brand
identity to brand meaning to brand responses to brand relationships. That is,
brand meaning cannot be established unless brand identity has been created;
brand responses cannot occur unless the right brand meaning has been
developed; and a brand relationship cannot be forged unless the proper brand
responses have been elicited.
An example of the type of questions that can be asked are as follows:
Salience
What brands of product or service category you can think of?
(using increasingly specific category cues)
Have you ever heard of these brands?
Which brands might you be likely to sue under the following situations…?
How frequently do you think of this brand?
Performance
Compared with other brandies in the category, how well does this brand
provide the basic functions of the product or service category?
Compared with other brand sin the category, how well does this brand
satisfy the basic needs of the product or service category?
71
Tow hat extent does this brand have special features?
How reliable us this brand?
How durable is this brand?
How easily serviced is this brand?
How effective is this brand’s service? Does it completely satisfy your
requirements?
How efficient is this brand’s service in terms of speed, responsiveness,
and so forth?
How courteous and helpful are the providers of this brand’s service?
How stylish do you find this brand?
How much do you like the look, feel, and other design aspects of this
brand?
Compared with other brands in the category with which it competes, are
this brand’s prices generally higher, lower, or about the same?
Compared with other brandies in the category with which it competes, do
this brand’s prices change more frequently, less frequently, or about the
same amount?
Imagery
To what extent do people you admire and respect use this brand?
How much do you like people who use this brand?
How well do the following words describe the brand: down – to- earth,
honest, daring, up- to- date, reliable, successful, upper class, charming,
outdoorsy?
What places are appropriate to buy this brand?
How appropriate are the following situations to use this brand?
Can you buy this brand in a lot of places?
Is this a brand that you can use in a lot of different situations?
To what extent does thinking of the brand bring back pleasant memories?
To what extent do you feel you grew up with the brand?
Judgements
Quality
What is your overall opinion of this brand?
What is your assessment of the product quality of this brand?
To what extent does this brand fully satisfy your product needs?
How good a value is this brand?
Credibility
How knowledgeable are the makers of this brand?
How innovative are the makers of this brands?
How much do you trust the makers of this brand?
To what extent do the makers of this Brandi understand your needs?
To what extent do the makers of this Brandi care about your opinions?
To what extent do the makers of this Brandi have your interests in mind?
How much do you like this brand?
How much do you admire this brand?
How much do you respect this brand?
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Consideration
How likely would you be to recommend this brand to others?
Which are your favorite products in this brand category?
How personally relevant is this brand to you?
Superiority
How unique is this brand”?
Top what extent does this brand offer advantages that other brands
cannot?
How superior is this brand to others in the category?
Feelings
Does this brand give you a feeling of warmth?
Does this brand give you a feeling of fun?
Does this brand give you a feeling of excitement?
Does this brand give you a feeling of security?
Does this brand give you a feeling of social approval?
Does this brand give you a feeling of self- respect?
Resonance
Loyalty
I consider myself loyal to this brand.
I buy this brand whenever I can.
I buy as much of this brand as I can.
I feel this is the only brand of the product I need.
This is the one brand I would like to buy/see
If this brand were not available, it would make little difference to me if I had
to use another brand.
I would go out of my way to use this brand.
Attachment
I really love this brand.
I would really miss this brand if it went away.
This brand is special to me.
This brand is more than a product to me.
Community
I really identify with people who use this brand.
I feel like I almost belong to a club with other users of this brand.
This is a brand used by people like me.
I feel a deep connection with other’s who sue this brand.
Engagement
I really like to talk about this brand to others.
I am always interested in learning more about this brand.
I would be interested in merchandise with this brand’s name on it.
I am proud to have others know I use this brand.
I like to visit the Web site for this brand.
Compared with other people, I follow news about this brand closely.
73
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Guidelines for In-Depth Elicitation of Brand Associations
1. Include at least one visual technique (e.g., moodboard technique of

selecting pictures from magazines or newspapers).
2. Include at least one object-projective technique (e.g., describing brand as
a car, animal, fabric, vegetable, celebrity, etc.).
3. Probe for secondary associations (e.g., use primary associations as
stimulus words for subsequent probing, such as “what do you associate
with quality?”).
4. Probe for relevant situations in which individuals have experienced the
brand or drawn on knowledge about the brand.
5. Address sensory associations directly (e.g., evoke product-related
associations of appearance, sound, taste, smell, or feel).
6. Use real stimuli when practically possible (e.g., let consumers sample
products or be exposed to a broad set of brand elements).
7. Use established scales for emotional and personality associations.
8. Instruct respondents to take their time and create acceptance for pauses.
9. Assure confidential treatment of responses.
10. Use person-projective techniques (e.g., to mitigate censoring effects, have
respondents report associations on behalf of some person or figure
belonging to the same group as the respondent).
11. Validate minority associations on a subset of the majority (ensure that
responses from verbal respondents are also valid for less verbal
respondents by follow-up interview).
12. Criteria of salience and frequency should not be used uncritically
(recognize that some words or phrases are easier to report and come to
mind more quickly and that this may not always reflect the strength of
brand associations).
13. Use a follow-up survey or other methods to determine relationships
between strength, favorability, and uniqueness of associations).
14. Elicit associations from different types of customers and from the
advertising people (e.g., heavy users, average users, light users, and
nonusers).
15. Divide the sample into two and include both users and nonusers (i.e.,
avoid respondent fatigue and potential “halo” effects).
16. Start with thorough instructions and visual techniques (verbalizations may
disrupt visualizations).
17. Adapt to individual diff
18. erences in response styles and response attitudes (i.e., make sure that
the measures fit the sample appropriately).
75
CONCLUSION
All successful brands have followed a well-defined strategy. Brands are not
built overnight, and brand equity cannot be achieved through a single
advertising campaign. Brands that have reached the ‘relationship’ stage in the
consumer’s mind have continually evolved, and have proactively built their
strategy through meaningful consumer insights.
With the previous discussion as a background, to create a strong brand, one

must look at the following:
1. Understand consumer behaviour, trends, motivations, needs and

aspirations
2. Properly position the brand
3. Provide a superior delivery of desired benefits through a crisp and
sound brand identity
4. Employ a full range of complementary brand elements to provide
totality to the brand identity
5. Integrate the brand identity effectively with the marketing activities,
including pricing, product development, distribution and promotion
6. Maintain consistency in communication and each and every consumer
touch-point or interface
7. Maintain the brand image over time through extending brand identity to
related products
8. Implement a brand equity measurement system to track the brand over
a period of time
9. Incorporate the changes in consumer trends into the brand identity to
keep the brand relevant at all points of time
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LIST OF REFERENCES
1. Kevin Lane Keller, “Strategic Brand Management- Building, Measuring

and Managing Brand Equity”, Pearson Education, (2004)
2. Al Ries, Jack Trout, “Positioning- The Battle for your Mind”, Warner
Books, (1986)
3. Harsh Verma, “Brand Management”, Excel Books, (2002)
4. Rajeev Batra, John G.Myers, David A. Aaker, “Advertising
Management”, Fifth Edition, Prentice Hall, India (1996)
5. Jean Noel Kapferrer, “Strategic Brand Management- New Approaches
to Creating and Evaluating Brand Equity”, Free Press (1992)
6. David A. Aaker and Erich Joachimsthaler, “Brand Leadership”, Free
Press (2000)
7. Philip Kotler, “Marketing Management: Analysis, Planning,
Implementation and Control, Prentice Hall
8. Leon G. Schiffman and Leslie Lazer Kanuk, “Consumer Behaviour,
Prentice Hall, (1997)
9. David Aaker, “Brand Extensions: The Good, the Bad, the Ugly”, Sloan
Management Review, (1990)
10. Al Ries, Laura Ries, “The 22 Immutable Laws of Branding”, Harper
Collins, (1988)
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“BUILDING A BRAND FROM SCRATCH”

Brand Building Strategy for Beginners

Prof. Rutu Mody-Kamdar

Narsee Monjee Institute of Management Studies (Deemed University)

Brand Management is an important topic in Marketing Management, both for

NMIMS appreciates the efforts put in by her in producing this valuable

1. Chapter 1: Brands and Brand Building

2. Chapter 2: Gaining Customer Insights

3. Chapter 3: Brand Positioning

4. Chapter 4: Brand Identity

5. Chapter 5: Articulating Brand Identity

6. Chapter 6: Executing Brand Identity

7. Chapter 7: Extending Brand Identity

8. Chapter 8: Reviewing Brand Identity

10. List of References

BRANDS AND BRAND BUILDING

According to the American Marketing Association (AMA) a brand is defined as

Technically speaking, this definition of brands seems sound, but it is limiting in

All of us have carried living images of brands such as Raymonds, Cadbury’s,

Products versus Brands

A product is a physical entity that lives in the real world. A brand is a

1. Core Benefit Level: is the fundamental need or want that consumers

Hence, in accordance to the concept proposed by Kotler, brands emanate

More specifically, what distinguishes a brand from its unbranded

Brands are also known to move from Product Feature propositions to

a. What attributes are embodied in the product or service?

An obvious question here is that why are brands important? Should

Brands identify the source or maker of a product and allow consumers to

The meaning imbued in brands can be quite profound. The relationship

Relationships with mass (market) brands can soothe the “empty

Brands can also play a significant role in signalling certain product

Although there are a number of different means by which consumers handle

Brands also provide a number of valuable functions to firms. Fundamentally,

In short, to firms, brands represent enormously valuable pieces of legal

Brand Building Strategy- An Overview

Articulating Brand Identity

Executing Brand Identity

Extending Brand Identity

Reviewing Brand Identity

GAINING CUSTOMER INSIGHTS

Articulating Brand Identity

Executing Brand Identity

Extending Brand Identity

Reviewing Brand Identity

All brands are stored in a similar form in a consumers mind. A variety of

Create Network Structure

Acceptable Unacceptable Indifferent Overlooked

Purchased Not Purchased

A pioneering framework illustrating the decision making process suggests that

Consistent with the associative network memory model, brand knowledge is

Brand image can be defined as perceptions about a brand as reflected by the

Other brands of course, will be characterized by a different set of

For branding strategies to be successful and brand equity to be created,

Brand awareness consists of brand recognition and brand recall performance.

As is the case with most information in memory, it is generally easier to

Establishing Brand Awareness

How do you create brand awareness? In the abstract, increasing the

In short-, brand awareness is created by increasing the familiarity of the brand

A positive brand image is created by marketing programs that link strong,

Marketers should recognize the influence of these other sources of

Strength of Brand Associations

Marketing communications programs attempt to create strong brand