Brand – Provide Value to Consumer & The Company

Value to the consumer Value to the

company
Easier identification Repeat Business

Guide Purchase Decision Relationship Aid New Product Introductions

And
Emotional Competitive Entry Barrier
Reduced Perceived Risk
Link
Purpose Maintain Differentiation
Of Against Competition
Quality Consistency Guarantee
The
Brand Better Managed Channel Partners
Self- Expression And
Social Identity Brand Command Price Premium
Asset
Trust & Assurance
ThroughInvestor / Shareholder Confidence
Brand
Satisfaction And
Equity Committed & Focused Staff
Consumption Pleasure

VALUE CREATION

IMMORTAL BRAND SELF EXPRESSIVE BENEFITS

FUNCTIONAL AND
BRAND EMOTIONAL BENEFITS

FUNCTIONAL /
LABEL
EMOTIONAL BENEFITS

PRODUCT PRODUCT FEATURES

Price Differentiation Factor
 EXPERIENTIAL APPROACH TO BRANDING

Physical Consumption Physiological Experience

Application- Based Consumption Application Experience

Non – Reality Consumption Fantasy Experience

Conspicuous Consumption Social Experience

Risk- Free Consumption Well- Being Experience

BRANDING CHALLENGES
• Informed and Savvy Customers (Trust mark & Emotional
connect)
• Brand Proliferation
• Media Fragmentation
• Sophisticated and Increased Competition.
• Decreasing Brand Loyalty.
• Growth of Private Labels.
• Increasing Trade Power
• Focus on Promotions.
• Stress on Advertising Expenditure.
• Short- Term Performance Orientation.
 VIRGIN - BRAND IDENTITY
Brand Essence - Non- Conformist/ Unconventional
• Core Identity - Consistent best- of-category quality delivered with humor and flair
• Innovation - First with truly innovative, value - added features and services
• Fun & Entertainment - A fun and entertaining company
• Value for money - Value in all offerings, not just the high price option.

Extended Identity
• Underdog - Innovative & creative offers to counter established firms.
• Personality - Flaunts rules, Humorous, Outrageous, Competent, Stylish.
• Symbol - CEO led perceived lifestyle approach, Virgin Script Logo.

Value Proposition
• Functional Benefits - Quality Value Offering with extras delivered with style.
• Emotional Benefits- - Fun & good Times association, Attitude to serve the best.
• Self- Expressive Benefits - Be Outrageous against the norms.
• Relationship - Customers as fun companions.

Identity Vs Tagline

• Represents the identity • Represents the brand position

• Communicate & energize • Communicates with external world.
internal staff. • May change / reposition.
• Confined approach.
• Timeless/ Long time
• IBM - Solutions for a small planet
proposition
• Dominos- Hungry Kya
• Relevant across markets & • Nike - Just do it
products.
• IBM - Magic you can trust
• Dominos- Guaranteed Delivery
• Nike - Excelling
 BRAND SUCCESS TRAITS
 Excel at Delivering benefits customers truly desire

 Stay Relevant

 Pricing Strategy - Customers’ perception of value.

 Proper Positioning.

 Brand Consistency.

 Brand Portfolio and Hierarchy to be sensible.

 Build Brand equity on well coordinated marketing activities.

 Brand Managers awareness of what the brand means to customers.

 Provide proper and sustained brand support in the long run.

 Company to monitor the source of brand equity

PERCEIVED RISK

Brands reduce the Risks in Product Decisions

 Functional Risk
 Physical Risk
 Financial Risk
 Social Risk
 Psychological Risk
 Time Risk
 CUSTOMER BASED BRAND EQUITY PYRAMID

Relationships
(What about you & me?)
Resonance

Response
Judgment Feelings (What about you?)

Meaning
Performance Imagery (What are you/)

Identity
Salience (Who are you/)

BRAND SCORECARD
Your Brand Which Means Instance

Delivers Benefits Customer engagement Starbucks

Customers Desire

Stays Relevant Elements of the Brand Gillette

Price based on Product nature i.e. Premium P&G

consumer’s Vs Household Staple
perception of
brand’s value

Conveys similarity with & Visa

Properly
Positioned Differences against
competing brands
Consistent Consistent Marketing Nike
Communications over time
 BRAND SCORECARD
Your Brand Which Means Instance

Sensible fit in Brands- Logical working Gap, Banana Republic, Old

the Brand Portfolio Navy.

Integrated Solidified Brand Identity Coke

Marketing

Managers consumer’s different Gillette

understand perceptions.
Meanings

Receive Consistent investment in Samsung & LG

support brand awareness.

constantly brand equity management Disney

Monitored system.

MEASURING BRANDS
THREE PATHS

Customer –Based Incremental Branded

Brand Metrics Brand Sales Business Value

Attitudinal Market Place Brand

Data Performance Data Valuation

Hierarchy of Marketing Mix Discounted Cash

Effects Modeling - ROI Flows

Tracking Predictive Brand

Studies Modeling - ROCI Scorecards
 BRAND AWARENESS
Brand
Brand Recognition
Recognition Brand
Brand Recall
Recall
(At
(At Point
Point of
of Purchase)
Purchase) (prior
(prior to
to Purchase)
Purchase)
Plus
Plus
Brand
Brand Attitude
Attitude
Informational Motivation
Motivation Type
Type Transformational
(Negative Motivation ) (Positive Motivation)
Typical Product Categories Typical Product Categories
LOW ( Brands may Differ) ( Brands may Differ)
Involvement • Aspirin • Candy/ Chocolates
(Trial • Light Beer • Regular Beer
Experience • Detergent • Fiction Novels
Sufficient) • Routine Industrial Products
• Brand Loyal
• Routinized Favorable
Decision
Decision brand switchers
Type
Type Typical Product Categories Typical Product Categories
(Brands may Differ) (Brand may Differ)
HIGH • Microwave Oven • Vacations
Involvement • Insurance • Fashion Clothing
(Search & • Home Renovations • Cars
Conviction • Mew Industrial Products • Corporate Image
required prior
to purchase • New Category Users
• Experimental or Routinized other brand switchers
• Other Brand Loyals

BRAND VALUE CHAIN

MARKETING
CUSTOMER MARKET SHAREHOLDER
VALUE PROGRAM
MINDSET PERFORMANCE VALUE
STAGES INVESTMENT

- Product - Awareness - Price Premiums - Stock Price

- Communication - Association - Price Elasticities - P/E Ratio
- Trade - Attitudes - Market Share - Market Cap.
- Employee - Attachment - Expansion Success
- Other - Activity - Cost Structure
- Profitability

MULTIPLIER PROGRAM MARKETPLACE INVESTOR

QUALITY CONDITIONS SENTIMENT

- Clarity - Competitive Reactions - Market Dynamics

- Relevance - Channel Support - Growth Potential
- Distinctiveness - Customer Size & Profile - Risk Profile
- Consistency - Brand Contribution
 LEVI’
LEVI’S – BRAND ATTRIBUTE & BENEFIT ASSOCIATION
Attributes

User Imagery Usage Imagery

Western, American, Blue Collar, Appropriate for Outdoor
Hard Working, Traditional, Work & Casual Social
Strong, Rugged & Masculine Situations.

Product – Related Brand

Attributes Personality
Blue Denim, Shrink-to-fit Honest, contemporary,
cotton fabric, Button Fly, Two LEVI’
LEVI’S Classic, Approachable,
horse patch & Red pocket tag. 501 Independent & Universal.

Functional Benefits Symbolic Benefits

High- Quality, Long Lasting Self- Confident & Self-
& Durable. Assurance Feeling
Comfortable fit and
Relaxed Wear
Experiential Benefits
Benefits

Benefits

BRAND HIERARCHY

 Nothing Else Beats It

BONDING

 Does it Offer Me
ADVANTAGE
Something Better Than Others

 Can It Deliver PERFORMANCE

 Does it Offer Me Something RELEVANCE

 Do I Know About It PRESENCE

 Measures Consumer Attitudes, Beliefs & Opinion.

 Defines the Five Levels of Brand Relationship
 PRODUCT - THREE LEVELS

Installation
Augmented Product

Packaging

Brand Product
Delivery After-
Name CORE BENEFIT Features Core
and Sales
OR Product
Credit Service
SERVICE

Quality Design

Actual Product

Warranty

EXPERIENCE ECONOMY

 Charge for the Stuff - Commodity Business.

 Charge for Tangible Things – Good Business.
 Charge for Activities you Perform – Service Business.
 Charge for time spent by consumers with you
- Experience Business.

THE IDEA IS NOT TO ‘SELL SOMETHING’, BUT TO

DEMONSTRATE HOW A BRAND CAN ‘ENRICH A
CUSTOMER’S LIFE’.
 VALUE PROPOSITION
Short
Specific ( relate to customer)
Customer’s Language
By the seat of the pants ( Use experience, Instinct or
guesswork to be avoided).

 VALUE PROPOSITION SHOULD :

 Solve Consumer Problem.
 Deliver Benefits.
 Improve their situation / Impact them
 Enrich lives.

VALUE PROPOSITION – A PROMISE

• PROMISE –
– An anticipation of VALUE
– Set of Promises to target, differentiated against Competing simi lar offers
backed up by reason to believe.

• BENEFITS
– Functional, Economic, Emotional.

• DIFFERENTIATED VS ALTERNATIVE OPTIONS

– Customer buys competing offer.
– Status Quo that customer does not buy at all/ defers.
– Competing with yourself ( advanced/ new version sale)

• PROMISE EVIDENCE
– Physical
– Testimonial
– Third Party Endorsement.
 PRODUCT CLASSIFICATION BASIS
 The Nature of Consumer Buying Behavior
 Consumer Goods – Frequently purchased without much deliberations, Wide
availability.
 Shopping Goods – More Planned and compared.
 Specialty Goods – Select Outlets, Inelastic demand with little or no comparison.

 Involvement Level in Purchase Process

 Low Involvement – Little deliberations, low risk perception.
 High Involvement – Invest time & effort , high risk perception

 Type of Benefit
 Functional/ Utilitarian Benefit – Logical, Rational advantage.
 Emotional Benefit – Ego Expressive need.

o Brands in same category may position product at opposite side of spectrum.

o Different customers may place same product in different classes.

PRODUCT POLICY DECISIONS

 Product Attributes or Features ?

 Preferred Trade-off between Product Development Costs Vs Consumer
Value delivered ?
 Post successful product launch, managing ‘me- too’ products ?
 Structure of its New Product Development pipeline ?
 Preferred Product Mix composition ?
 Product line/ Brand Extension types?
 Avoid Brand Dilution ?
 Product offering prune ?
 Product line trade down thru cheaper version offer of current pr oduct ?
 PRODUCT DECISIONS

• Product Attributes : Define prod. Benefits e.g. Quality,Features & Design.

 Watches, Cars, Electronic Eqpt - Performance quality.
 Test equipment, Life Saving eqpt. - Conformance quality i.e. defect free.
 Cell phones, cars, computers - Features to add value & relevance.
 Cars, Watches,Audio & video eqpt. - Design (Gillette, Braun)to be competitive.

• Branding : Important part of the product that adds value.

 Brand sponsor options while the product is launched.
 Co-branding, Line Extension & Brand Extension, Multi brands & New Brands.

• Packaging : Primary & Secondary container to protect & market the product as well.
 Tetra Pack with UHT technology for juices are consistent with adverts, pricing &
distribution.

• Labeling : From Simple tags to complex graphics

 Identifies maker, place, date of mfr. & expiry,contents, usage m ethods & safety.
 States unit pricing, open dating( shelf life), & nutritional labeling.

• Product Support Services : Part of the complete offer to augment the product.
 Computers, Cars, Electronic Equipment need service to support the sale.

PRODUCT POLICY DECISIONS

 Recognize core customer need intended to satisfy.

 Whether product ideally suited to satisfy the need.
 Does it need redesigning.
 Create sustained competitive advantage thru augmentation.
 Monitor customer satisfaction experience.
 POSITIONING
POSITIONING
MARKET MIX FOR EACH TARGET SEGMENT

MARKET
POSITIONING
POSITIONING TO EACH TARGET SEGMENT

SELECT ONE OR MORE SEGMENTS TO ENTER

MARKET
TARGETING
EVALUATE SEGMENT ATTRACTIVENESS

EVOLVE SEGMENT PROFILES

MARKET
SEGMENTATION

IDENTIFY SEGMENTATION BASIS

POSITIONING STRATEGIES
• :
POSITIONING BY ATTRIBUTE :

POSITIONING BY PRICE /QUALITY:

POSITIONING BASED ON USE OR APPLICATION

POSITIONING BY PRODUCT USER :

POSITIONING BY PRODUCT CLASS:

POSITIONING AGAINST COMPETITOR :

POSITIONING PREMIUM PRODUCTS
• PRODUCT FEATURES

• PERFORMANCE QUALITY

• PRODUCT EXCLUSIVITY & STYLE

• PRODUCT DESIG

• SERVICE QUALITY

• PEOPLE QUALITY

• PACKAGING QUALITY

• IMAGE QUALITY

PRODUCT FAILURES
• INCORRECT POSITIONING :

• IMPROPER PRICING :

• PRODUCT DESIGN FAILURE

• UNDERESTIMATING COMPETITION

• OVERESTIMATING MARKET SIZE

• LACK OF GENUINE SUPERIORITY

• LACK OF DISTRIBUTION SUPPORT

 NEW PRODUCT DEVELOPMENT DECISION PROCESS

Idea Idea Concept Dev. Marketing Business

Generation Screening & Testing Strategy Dev. Analysis
Is it worth Idea compatibility Good concept Cost- effective Products meets
Considering with objectives, that consumers & affordable the profit goal?
strategies & may try marketing strategy
Resources

Commercialization Market Product

Are product sales Testing Dev.
Meeting expectations Have product A technically
Yes
Sales met & commercially
Expectations? Viable product

No No
Yes
Modify product or Send back
Mktg. program to product
Dev.

CATEGORIES OF NEW PRODUCTS

 New to the world products

 New product lines

 Additions to existing product lines

 Improvements & revisions of existing products

 Repositioning

 Cost reductions
 INNOVATION ADOPTION CHARACTERISTICS
 Relative Advantage
o Superiority over existing products.
o Greater the degree, quicker the adoption.

 Compatibility
o Congruence with lifestyle & Values of potential users.

 Complexity
o Degree user friendliness.
o More the complexity, longer the adoption process.

 Divisibility
o Trial ability on small quantity/ limited basis.
o More the options, better & earlier the adoption.

 Communicability
o Benefits are observably or describable to others.
o Interest & curiosity for potential users.

MARKET TESTING

 New product introduced into authentic setting.

 Consumer & Dealer reaction to handling, usage & repurchase.
 Valuable info on dealers, potential buyers, marketing programs &
markets.
 High Investment – High Risk Products with failure risk
 Test Influenced by Investment cost & risk, Time pressure & resea rch
cost.
 Product creating new categories/ with novel features need test.
 Modified products ( imitative) may avoid.
 High value cosmetics avoid test market- Demonstrators at dept. stores.
 TEST MARKETING – BUSINESS GOODS
• Expensive / New Technology Products
– Alpha Testing ( Inside Org.) & Beta Testing ( Consumers)
– Beta Testing
• Small numbers of test customers invited.
• Observe test consumers usage pattern.
• Exposes unforeseen issues on safety/ servicing etc.
• Observe customer value addition for pricing clues.
• Ask for purchase intention.
• Seek test reactions, if any.
• New Industrial Products
– Introduce at Trade Shows
• Buyer interests recorded.
• Reaction to features and terms.
• Purchase intentions & order placements.
– Distributor & Dealer Showrooms
• Place adjacent to own products/ competitor products.
• Valuable preference & pricing info in selling atmosphere.
• Ability to handle orders placed.
• All customers not representational target market.

Value Innovating:
Four Basic Questions
Reduce
What factors should be reduced well below the industry standard?

Eliminate Create
What factors should be What factors should be
Value
eliminated that the industry created that the
Innovation industry has never offered?
has taken for granted?

What factors should be raised well beyond the industry standard?

Raise
 MARKET ENTRY TIMING
Market entry on commercialization with three options :

 First Entry
o Enjoys ‘first mover’ advantage.
o Leadership position, firm up distributors & customers.
o A non- debugged product can backfire.
 Parallel Entry
o Coincide with competitor entry.
o Better interest & enthusiasm in the market .
 Late Entry
o Delay launch till competitor entry.
o Lesser education effort.
o Faults rectified.
o Ascertain true market size.
Criteria to choose rollout markets
 Market Potential.
 Local reputation of the co.
 Cost of filling pipeline.
 Cost of communication media.
 Competitive penetration
 Influence of this area on other areas.

VALUE CREATION & DELIVERY

Choose The Value

Customer Market Selection Value

Strategic Marketing
Segmentation / Focus Positioning

Provide The Value

Product Service Sourcing Distributing

Pricing
Development Development Making Servicing

Communicate The Value

Tactical Marketing
Sales
Sales Force Advertising
Promotion
 BREAKTHROUGH VS INCREMENTAL
Breakthrough
- Now-to-the-world Performance Features
- Huge advance in performance
- Dramatic cost reduction
Incremental
- Improvement in existing product
- Derivative of existing product platform
- Exploits existing forms of technology

- High Risk - Lower Risk

- Expensive - Less Expensive

- Targeted to New or Existing Markets - Targeted to existing or Adjacent Markets

Marketer’s Key Responsibilities

- Envision the Market - Listen to the Existing Market

- Create Demand - Accommodate Current Demand
- Educate the Market

PRODUCT DEVELOPMENT FUNNEL

Customer
Needs

Concept
Generation Product Prototyping Pilot Manufacturing
and Design and Testing Production Ramp Up and
Selection Release

Technological
Possibilities
 CREATING PROJECT PLANS
PROCESS CHANGES
PRODUCT CHANGES New Core Process Next Gen Upgrade Tuning/ Incremental

New Core Product BREAKTHROUGH

Next Gen Product

PLATFORM

Addition to
Product Family

Add – ons and DERIVATIVES

Enhancements

STAGE – GATE MODEL

Initial Second Decision on Post- Pre- Launch Post -

Screen Screen Business Development Business Implementation
Case Review Analysis Review

Idea G1 S1 G2 S2 G3 S3 G4 S4 G5 S5 PIR

Ideation Preliminary Detailed Development Testing & Full

Investigation Investigation Validation Production
(Build Business Market Launch
Case)
 PRODUCT CONCEPT GENERATION
 Translating Customer Needs into Product Features:
 Customer vocabulary of ‘comfort’, ‘reliable’ ‘ safe’ etc.
 Preliminary Specifications may be modified..
 Assign metrics for ‘Q F D’ to co-relate among attributes.
 What is a Concept
 Concept Positioning Statement to answer ‘Who’. ‘What’ and “How’.
 Positioning.= Differentiation ( What +How) + Segmentation ( For Whom)
 Text, Drawings & Models about the performance & Technical featur es.
 Configuration, how will it serve customers, who they are, its me aning to
customers.
 Concept Description as – Speed, Size, Horsepower etc.
 Product Integrity
 Extent to which the totality of the product achieves the balance ( Basic
functions, esthetics, semantics, reliability, & economy) and att racts and
satisfies customers.
 Product Architecture
 product changes e.g. upgrade, add- ons, wear and tear, replacing.
 Varieties desired
 Performance Levels to be achieved

PROTYPING

Types of Tests Performed on Prototypes:

– Technical Performance Evaluation ( Engineering)
– Esthetic features ( Marketing & Industrial Designers)

Overall Objectives :
 Test the feasibility of a concept
 Physical / Analytical modeling.
 Arrangement & fitment of parts, cost factors, motor sounds, insu lations.
 Customer feedback assimilation
 User comfort, sturdiness, packing.
 Communicate an Idea ( company, suppliers, distributors etc)
 Management commitment for investment.
 Pilot Production and Launch

 Pilot Production :
 Test readiness to ship including assembly, test, operational procedures..
 Molds, machines etc to support any anticipated need levels.
 Establishment of basic processes of manufacture.

 Ramp Up :
 Develop capability to produce volumes e.g. first year.
 Manufacturing, design, suppliers, shipping etc involved.

 Launch :
 Target segment, positioning, product & service combination, distribution
executed for the right customer at the right time and right pric e.

MARKETER’
MARKETER’S ROLE - PRODUCT DEV

 Market Size and probability of acceptance in specific segments.

 Reaching these segments – Existing Channel Capability & Cost .
 Identifying specific customer requirement & How rapidly they cha nge
 Price Range acceptability to the market.
 Competition profiling.
 Articulation of the value proposition of the new product.

 Answers entered into Business Analysis & Revenue - Cost Projections.

MATCHING DEVELOPMENT PROCESS WITH PRODUCT
TYPE

Crash Most
Program Challenging
High
Speed at Which
Market Window
is Closing
(Opportunity Cost)

Low 100 % Right

Low High
Degree of Technical
Innovation Required
( Development Risk)

NEW PRODUCT TYPES

Mismatch

Breakthrough Incremental
l
ta
en
B re e m
ak cr n
thr In io
o Mismatch t
ug
h ep
Su rc
pp Inc u gh pe
lie ro ’s
r’ sP rem
k th er
er c en m
ta ea to
ep l Br s
tio
n Cu
 PRICING STRATEGY - PRODUCT MIX
1 PRODUCT LINE PRICING:

2 OPTIONAL -PRODUCT PRICING :

3 CAPTIVE -PRODUCT PRICING :

4 BYPRODUCT PRICING :

5 PRODUCT BUNDLE PRICING :

STRATEGIES TO ADJUST PRICE

1 DISCOUNT & ALLOWANCE PRICING

2 SEGMENT PRICING

3 PSYCHOLOGICAL PRICING

4 PROMOTIONAL PRICING
 NEW PRODUCT PRICING
A IMITATIVE NEW PRODUCT ( Quality & Price Conscious Buyer
Category)

High PRICE Low

High
Premium Good Value

QUALITY

Over Charging Economy

Low

PRICE ALTERATIONS
1 PRICE CUTS :

2 PRICE INCREASES

3 BUYER REACTIONS

4 COMPETITOR REACTION

5. REACTION TO COMPETITOR PRICE CHANGES

 PRICE CHANGE METHODS

To reduce customer sensitivity to price:

• OFFER QUALITY PERCEPTION

• OFFER LINE EXTENSIONS

• UNBUNDLING

• OPPORTUNITY PRICING

• REPOSITIONING

• DISCOUNT REDUCTIONS

VALUE - PRICING THERMOMETER

 Optimal Pricing
 Perceived Value at Upper end.
 Influenced by TEV by mktg. mix & substitute products.
 COGS at Lower end.
Objective Value
Marketing Efforts
Perceived Value

Substitute Consumer’s Incentive to Buy

Pricing =( Perceived Value- Price)

Product Price

Firm’s Incentive to Sell

=( Price – COGS)
Cost of Goods Sold
Rupee 0
 PORTER’S GENERIC STRATEGIES

COMPETITIVE ADVANTAGE

Low Cost Higher Cost

SCOPE

Overall Cost
Broad

Differentiation
Leadership
COMPETITIVE

Narrow

Cost Differentiation
Focus Focus

Competitive Advantage - Are Products differentiated in any way or merely cost

basis
Competitive Scope – Does the co. target a wide / narrow market

Competitive Advantage – (Cost or Differentiation Advantage )

BOWMAN’S CLOCK
• Option one - low price/low added value
– likely to be segment specific
• Option two - low price
– risk of price war and low margins / need to be a 'cost leader '.
• Option three - Hybrid
– low cost base and reinvestment in low price and differentiation
• Option four – Differentiation
– (a) without a price premium
• perceived added value by user, yielding market share benefits
– (b) with a price premium
• perceived added value sufficient to bear price premium
• Option five - focused differentiation
– perceived added value to a 'particular segment' warranting a pre mium price
• Option six - increased price/standard
– higher margins if competitors do not value follow/risk of losing market share.
• Option seven - increased price/low values
– only feasible in a monopoly situation
• Option eight - low value/standard price
– loss of market share
 PRICE POLICY - INFLATION

Systematic Discounting

Promote Multi Unit Buying

Improve Efficiency

Pass on Costs when justified

Detest Trimming Marketing Spends

CONSUMER REACTIONS- INFALTION

 Down Trade :
 Shift to regular petrol.

 Bulk Buy:
 Stock up select product at current prices.

 Watch Fine Print :

 Detailed check for quantity/ weight.
 Package size alterations.

 More Demanding :
 Negotiate hard deals .

 Substitution:
 Trading in petrol vehicle for a diesel.
 LEGAL / ETHICAL ISSUES
 Differential Pricing:
 Better only when value added. Not seeking advantage by unfair me ans.
 High pricing of life saving drugs.

 Pricing to Undermine Competition :

 Predatory Pricing :

 Price Fixing:

 Price Maintenance:

 Pricing Principles be subjected to ethical review and an informe d

legal review within company prior to implementation .

MEASURING
MEASURING BRAND
BRAND PERSONALITY
PERSONALITY
o COMPETENCE
o Reliable : Hardworking, Secure, Efficient, Trustworthy,
Careful.
o Intelligent : Technical, Corporate, Serious.
o Successful : Leader, Confident, Influential .
o SOPHISTICATION
o Upper Class : Glamorous, Good- Looking, Pretentious,
Sophisticated.
o Charming: Feminine, Smooth, Sexy, Gentle.
o RUGGEDNESS
o Outdoorsy : Masculine, Western, Active, Athletic.
o Tough : Rugged, Strong, No-Nonsense.
 MEASURING
MEASURING BRAND
BRAND PERSONALITY
PERSONALITY
o SINCERITY
o Down –to-Earth : Family Oriented, Small Town,
Conventional, Blue Collar.
o Honest : sincere, Real, Ethical, Thoughtful, Caring.
o Wholesome : Original, Genuine, Ageless, Classic, Old-
Fashioned.
o Cheerful : Sentimental, Friendly, Warm, Happy.
o EXCITEMENT
o Daring : Trendy, Exciting, Off- Beat, Flashy, Provocative.
o Spirited : Cool, Young, Lively, Outgoing, Adventurous.
o Imaginative : Unique, Humorous, Surprising, Artistic, Fun,
o Up-To-Date : Independent, Contemporary, Innovative,
Aggresive.

DIMENSIONS
DIMENSIONS –– BRAND
BRAND IDENTITY
IDENTITY
BRAND IDENTITY

BRAND AS BRAND AS BRAND AS BRAND AS

A PRODUCT AN ORGANIZATION A SYMBOL A PERSON

- Product Scope - Organizational -Visual Imagery - Personality

- Product attributes Attributes and Metaphors
- Quality/ Value .Innovation, - Brand
- Uses .Trustworthy -Brand Heritage Relationships
- Users .Genuine customer
- Country of Origin concern
- Local Vs Global
APPROACHES - DEVELOP BRAND PERSONALITY

◊ SELF- EXPRESSION

◊ RELATIONSHIP

◊ FUNCTIONAL BENEFIT

BRAND IDENTITY PRISM – SIX FACES

∆ PHYSIQUE - The Basis of the brand.
( Philips is Technology & Reliability , ICICI is Trust)

∆ PERSONALITY – What happens when brand becomes a person.

( Macho Marlboro, Strong Ambuja)

∆ CULTURE - Organizational Symbols, Country of Origin & Values

( Balsara & Dabur for Traditional Remedies, Germany for
Precision Engineering, Japan for Consumer electronics)

∆ RELATIONSHIP – Handshake between brand & consumer.

( Colgate – Dependability, Saffola – Safety)

∆ REFLECTION – Consumer perception of what the brand stands for.

( Coke reflects youthful values for both young & old)

∆ SELF- IMAGE - What the consumer thinks of himself.

( Benz owner – Elite with the best car, Tractor Emulsion
Paint - Upper Class Look )
 BRAND
BRAND POSITIONING
POSITIONING -- CHECKLIST
CHECKLIST

• Relevant?

• Believable?

• Ahead of trend?

• Defensible?

• Deliverable?

BRAND ARCHITECTURE
Brand Portfolio
• All Brands
• All Sub-brands
Product – Market Portfolio Roles
Context Roles • Strategic Brands
• Endorser/ Sub- brands • Linchpin Brands
• Benefit Brands • Silver Bullets
• Co – Brands • Cash Cow Brands
• Driver Roles

Brand
Architecture

Brand Portfolio Portfolio Graphics

Structure • Logo
• Visual Presentation
• Brand Groupings
• Brand Hierarchy Trees
• Brand Range

Powerful Optimal Allocation of Synergy in creating Visibility, Clarity of Leveraged Platforms for
Brands Brand Building Resources Association & Efficiency Offerings Brand Assets future growth options
 BRAND VALUE PYRAMID

Most Meaningful
and most difficult
The Emotional, to imitate.
Spiritual& Cultural Hardest to
Values being BELIEFS
deliver
Addressed AND
VALUES

The Functional or
Emotional Benefits
provided to BENEFITS
customers

Features or Easiest to deliver,

Processes that but least meaningful
must be and most easily
demonstrated to FEATURES AND ATTRIBUTES imitated
customers.

PRINCIPLES
PRINCIPLES TO
TO DEVELOP
DEVELOP BRAND
BRAND PROMISE
PROMISE

• Understand the Promise from the customer

perspective

• Translation of Promises into Standards

• Fulfill good promises or risk brand damage

• Mend bad promises instantly

 LEVERAGING
LEVERAGING THE
THE BRAND
BRAND

LEVERAGING
THE BRAND

Line Brand Vertical Stretch Co- branding

Extensions Extensions of the brand Marketing venture
In the existing In a different In the existing with another brand
product class product class product class

Create a Stretching Stretching

Range brand Up Down

BRAND HIERARCHY – COLGATE ORAL CARE PRODUCTS

COLGATE
COLGATE

COLGATE
COLGATE COLGATE COLGATE COLGATE
FLUORIDE
TOOTHPASTE TOOTHBRUSH DENTAL FLOSS MOUTHWASH
TABLETS

COLOR
PLUS PRECISION CLASSIC YOUTH
CHANGE

DIAMOND ‘THE WILD

HEAD ONES’
 BRAND
BRAND EXTENSION
EXTENSION -- ADVANTAGES
ADVANTAGES
• Brand image improvement.

• Reduces customer risk perception

• Increases probability of gaining distribution and trial.

• Increases efficiency of promotional expenditure.

• Reduces introduction costs.

• Reduces developmental cost of new brand.

• Packaging and labeling efficiencies.

• Consumer variety options.

CUSTOMER
CUSTOMER EVALUATION
EVALUATION OF
OF EXTENSIONS
EXTENSIONS

• Parent brand awareness & positive association

in memory.

• Positive associations evoked thru the

extensions

• Negative associations not transferred

• Negative associations not created by the

extension
 LINE
LINE EXTENSION
EXTENSION

◊ EXPANDS USER BASE :

◊ PROVIDES VARIETY :

◊ ENERGIZES A BRAND :

◊ INHIBIT COMPETITION :

◊ MANAGE TRUE INNOVATION :

LINE
LINE EXTENSIONS
EXTENSIONS
• Customer Segmentation

• Consumer Desires

• Pricing Breadth

• Excess Capacity

• Short – Term gains

• Competitive Intensity

• Trade Pressure
 LINE
LINE EXTENSIONS
EXTENSIONS -- ISSUES
ISSUES
• Weakens Line Strength

• Weaken Brand Loyalty

• Stagnant Category Demand

• Trade Relations Weaken

• Increased Costs

EXTENSION
EXTENSION EVALUATION
EVALUATION BASIS
BASIS
Brand
Concept Resources

Fit

EXTENSION

Relevance Sustainable
Advantage
Customer Competition
Needs
 CO
CO -- BRANDING
BRANDING
• Usage extension

• Ingredient Co-
Co- Branding

• Image Reinforcement

• Composite Brands or Bundling of Brands

• Sales Promotions

• New product Launches

BRAND
BRAND STRATEGY
STRATEGY DIMENSIONS
DIMENSIONS
CUSTOMER ANALYSIS COMPETITOR ANALYSIS

• Trends • Brand Image

• Motivation • Strengths
• Segments • Weaknesses
• Unmet Needs

Strategic
Brand Analysis

SELF ANALYSIS

• Existing Brand Image

• Brand Heritage
• Strengths/ Weaknesses
• Brand Soul
• Links to Other Brands.
 LEVERAGES OF BRAND PROFITABILITY
CORPORATE RESOURCES
INVESTMENTS MARKETING INVESTMENTS DISTRIBUTION INVESTMENTS

Productivity, R&D Forecasting Changes of Proximity, Availability and

Know How & Patents Consumer Values & Lifestyle Communications

Level of Objective Quality Brand Relevance and Brand Awareness, Image,

Cost of Quality Adaptation to Present Market Liking & Familiarity

COMPETITION MARKET
PERCEIVED VALUE
• Other Brands • Involvement
• DOB’s VIS- À- VIS COMPETITION • Price sensitivity
• Hard Discount • Buying Criteria

SUSTAINABLE PRICE INCREMENTAL COST ADVANTAGE DUE

PREMIUM LEVEL ATTRACTION & ROYALTY TO MARKET LEADERSHIP

EXTENDED BRAND EQUITY BEYOND IT’S MARKET

ORGANIZATIONAL ASSOCIATION
THE ORGANIZATION
• Culture/ Values
• People
• Programs
• Assets /Skills
• Visibility

ORGANIZATIONAL ASSOCIATIONS
- Environmentally Sensitive - Concern for Customers
- Community Orientation - Presence / Success
- Perceived Quality - Local Vs Global
- Innovative

VALUE PROPOSITION CREDIBILITY INTERNAL CULTURE

OR • Expert • Clarity
CUSTOMER • Trustworthy • Buy – In
RELATIONSHIP • Likeable
 BRAND
BRAND HIERARCHY
HIERARCHY -- TERMS
TERMS
Range Brands

Product Line Brand

Umbrella Brand

Source Brand

Endorser Brand

BRAND
BRAND HIERARCHY
HIERARCHY-- TERMS
TERMS
Family Brand
Sub Brands
Modifier
Flanker Brand
Product Features/ Services
 HIERARCHY
HIERARCHY GUIDELINES
GUIDELINES
• Principle of Simplicity :

• Principle of Relevance :

• Principle of Differentiation

• Principle of Prominence

• Principle of Commonality

BRAND
BRAND ROLES
ROLES
STRATEGIC
STRATEGIC
ENDORSER
ENDORSER BRANDS
BRANDS

SUB
SUBBRAND
BRANDROLES
ROLES

DRIVER
DRIVER ••Describe
DescribeOfferings
Offerings
BRAND
BRAND ••Structure
Structure&&Clarify
ClarifyOfferings
Offerings
ROLES
ROLES ••Augment/
Augment/Modify
ModifyBrand
BrandID ID
••Exploit
ExploitMkt
MktOpportunities
Opportunities
••Support
SupportExtensions
Extensions
SILVER
SILVER
BULLETS
BULLETS
BRANDED
BRANDEDBENEFITS
BENEFITS

••Features
Features
••Components
Components
••Service
ServicePrograms
Programs
 SUB - BRANDS

Distinguishes part of the product line with the brand system

Supports the parent brand identity, and adds value thru :

• DESCRIBE OFFERINGS
• STRUCTURE & CLASSIFY OPTIONS
• AUGMENT / MODIFY IDENTITY THRU ASSOCIATION
CHANGE
• EXPLOIT MARKET OPPORTUNITIES
• SUPPORTS VERTICAL & HORIZONTAL EXTENSION

STRETCHING DOWN - CHALLENGES

Protect perceived quality associations.

Unfavorable information influences perception.

• Sub Brands: Insulate parent brand even with

lower quality

• Price Lowering: Price oriented competition &

retail power
 BRAND– STRETCHING DOWN
• Preference for low- cost brand with quality and features.
• Lesser versions as options.
• Challenge – Accommodate downscale versions not weaken
the brand.

New Competitors and Static Market

Emerging Retail Scenario

Technological Changes