Brand Terminologies

Brand widely known in marketplace acquires - Brand

Recognition.

When recognition builds up where brand enjoys critical

mass of positive sentiment in marketplace - said to have
achieved Brand Franchise.

For example, Disney has been successful at branding with

their particular script font (originally created for Walt
Disney's "signature" logo)

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Brand Awareness refers to customers' ability to recall and
recognize brand under different conditions and link to
brand name, logo, jingles and so on - certain associations
in memory.

Helps customers to understand to which product category

particular brand belongs to and what products are sold
under brand name.
e.g. - V Guard, Finolex, Crystal, Tantex, Pepe

Also ensures customers know which of their needs are

satisfied by brand through its products.

'Brand Love‘ - emerging term encompassing perceived

value of brand image.
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 Branding Benefits
1. Recognition and Loyalty
Customers more likely to remember business.
Strong brand name and logo / image keep company image
in minds of potential customers.

Products bought on impulse,

customer recognizing brand could mean
difference between no - sale and sale.

Even if customer was not aware brand sells particular

product, if they trust brand, they are likely to trust
unfamiliar products.
If customer is happy with products, brand helps to build
Customer Loyalty across business.
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2. Image of Company’s Size

Strong brand will project image as large and established

business to potential customers.

People usually associate branding with larger businesses

money to spend on advertising and promotion.

Effective branding can make business

appear to be much bigger than it really is.

Image of size and establishment can be especially

important when customer wants reassurance that company
will still be around in few years time.
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3. Image of Quality
Strong brand projects Image of Quality,
people see brand as part of product that shows its quality
and value.

With creation of effective branding, over time,

Image of quality in business will usually go up.

Of course, branding cannot replace good quality, and bad

publicity will damage brand (and company’s image),
especially if it continues over long period of time.

For example:
NEC, Japan lauched PCs in 1982 dominated market but
eventually faded out
Cielo car – DCM Daewoo
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4. Image of Experience and Reliability
Strong brand creates Image of Established Business
been around for long enough to become well known.

Branded business is more likely to be seen as

experienced in their products and will generally be seen as
more reliable and trustworthy than unbranded business.

Most people will believe that business would be hesitant

to put their brand name on something that was of poor
quality.

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5. Multiple Products
If business has strong brand, it allows to link together
several different products or ranges.
Can put brand name on every product sold,
customers for one product more likely to buy another
product.
Sony sells televisions, music equipment, cameras, DVD
players, video players, all under Sony brand.

Can also create separate brand names for product

ranges, allowing people to see brand name, and then use
range brand name to work out what they wish to buy.
Cadbury’s makes range of confectionary under different
sub-brand names such as Dairy Milk, Boost,
Flake, and Time Out. All sold under product brand, but all
feature Cadbury’s brand name on packaging.
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 Elements of Brand
The Elements of Brands are intrinsically striking and their
role is to create an indelible impression

Intrinsically striking Elements

Visual distinctiveness of brand may be a combination of :

• Name
• Letters
• Numbers
• Symbol
• Signature
• Shape
• Slogan
• Colour
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• Name Peter • Signature
England
• Shape
• Letters dh, CP, V
• Slogan
• Numbers Just Do It

• Colour
• Symbols

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 Brand Name
Choosing RIGHT name, legally protectable trademark
within given market space.

Good name gets attention. Great names claim position

Most importantly Brand Name provokes thought,

preconditioning consumers with understanding.

Brand name must claim mind share and market share.

Brand’s name is powerful tool for helping to translate
business into consumer- centric message.

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Brand Name should

• Differentiate

• have longevity

• should have right phonetics

• Avoid difficult to pronounce or uncomfortable ones -

unlikely to be remembered

• Trademark-ability
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 Brand Name
Types of brand names

1. Acronym: Name made of initials such as KFC or IBM

2. Descriptive: Names that describe product benefit or
function like Whole Foods or Airbus
3. Alliteration and rhyme: Names - fun to say and stick in
mind like Reese's Pieces or Dunkin' Donuts
4. Evocative: Names that evoke relevant vivid image like
Amazon or Crest
5. Neologisms: Completely made-up words like Wii or
Kodak
6. Foreign word: Adoption of word from another language
like Volvo or Samsung

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• Founders' names: Using names of real people
Hewlett-Packard or Disney, Ford, Tata, Suzuki

• Geography: named after regions and landmarks

Nippon and Fuji Film

• Personification: Many brands take their names from

myth like Nike or from minds of ad execs like Betty
Crocker

Brandnomer is brand name that colloquially become

generic term for product or service

Band-Aid
Xerox
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A good Brand Name should:

• be protected (or at least protectable) under

trademark law.

• be easy to pronounce.

• be easy to remember.

• be easy to recognize.

• be easy to translate into all languages in markets

where brand will be used.
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• attract attention.

• suggest product benefits (e.g.: Wrinkle Free) or

suggest usage (cargos)

• suggest company or product image.

• Distinguish product's positioning relative to

competition.

• be attractive.

• stand out among group of other brands.

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Brand Logos

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 Brand Slogan
MRF – Tyres with Muscle
CEAT – Born Tough
TATA MOTORS – Even
More Car per Car
Reliance Industries Limited –
Growth is Life
Honestly Impressive - PETER
ENGLAND
The Upper Crest - LOUIS
PHILLIPE
The Complete Man - RAYMONDS
Bond with the Best - REID AND
TAYLOR
Enjoy the Change - WILLS
LIFESTYLE
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1. The safest cars in the world 6. A unique coffee
experience
2. Frequent, low cost flights 7. Low cost computers with
minimal hassle
3. Everyday low prices 8. Time-certain delivery
4. Fun entertainment for 9. Refreshment
whole family
5. Advanced processors with
continually improving cost and
speed performance

Volvo, Jet Lite, Wal-Mart, MGM Dizzy World, Intel, Coffee

Day, Dell, Federal Express, Coke

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 Types of Brands
Corporate Brands – Single corporate’s products
WIPRO

House Brands – Wide variety of Products

CRYSTAL

Range Brands – Large range of base product

LEVIS

Product Brands – single product brand

MODERN BREAD 20
 Types of Brands

Based on Market Position a. Product Brand

1. Primary Brand Service Brand
(Core Brand)
b. Personal / Celebrity
2. Secondary Brand Brand
(Line extension)
c. Organizational Brand
3. Tertiary Brand Event Brand
(insignificant revenue but
still contribute to company’s d. Geographical Brand
image) 21
 Types of Brands
Celebrity Brands

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23
Corporate Branding

- TATA, BIRLA, TVS, SAKTHI

Services Branding

– VSNL, Mahindra Resorts, LIC

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 TYPES OF BRANDS
1. Manufacturers Brands:

Initiated by producer - 85% food items, all autos,

75% major home appliances, more than 80% petroleum
products.

Requires producer to be involved in distribution, promotion,

and pricing.

Brand loyalty is encouraged by quality, promotion and

guarantees.

Producer tries to stimulate demand; encouraging

middlemen to make product PULL

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2. Private Distributor Brands:

Initiated and owned by resellers - 80% of apparels,

50% of food, 25% home appliances.

Manufacturers not identified in product.

Helps retailers develop more efficient promotion, generate

higher margins and increase store image.

Walmart, Marks & Spencer, Shoppers Stop, Viveks, VGP,

Chennai Silks

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3. Wholesalers brands - Retailers brands

Sears - Kenmore, JC Penney's - Stafford Executive,

President’s Choice

DuPont designs / makes fashion items, utilize its fiber

resources and develops another customer for them.

Work with retailers to design fashions.

Competition between manufacturer’s brands and private

brands is intensifying.

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4. Generic Brands:

Indicates only product category.

Began as low cost alternative in drug industry.

Less than 1% of supermarket revenue even though 85 %

stock them.

Cheaper than branded items.

Accounts for less than 1% of retail sales

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 Branding Strategy - Types Of Brands
There are many ways brands can be classified.
• Product Branding

• Line Branding

• Range Branding

• Umbrella Branding

• Source / Double Branding

• Endorsement Branding
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 Branding Strategies
1. One Brand – All Products

One common brand name, usually name of company /

manufacturer
– manufactures diversified range of products and markets
under one single brand name.

Samsung
– television, refrigerators, computer monitor, mobile
phones, washing machines etc.

Good name and goodwill of the company sells entire range

of products.

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2. One Brand – Many Products with sub brand
Corporate manufactures many products and markets a set
of products under
ONE SUB – BRAND NAME.

Hindustan Lever Limited – Main Brand – Corporate Name

Denim - sub-brand – talc powder, after shave lotions,

shaving cream, soap, deo.

Lux - sub-brand - toilet soap, shampoo, hair oil etc

Sub-brand also commands equal respect in market.

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 Nestlé Branding Tree
Texicana
7,500 Local brands
responsibility of Brigadeiro
local markets Rocky
Solis
140 Regional Mackintosh
strategic brands Vittel
Responsibility of strategic
Contadina
Business unit and regional
Management Stouffer’s
KitKat Herta
Polo Alpo
45 Worldwide strategic Cerelac Findus
brands Baci
Responsibility of general Mighty Dog
management at strategic Smarties Nestle
business unit level After Eight Carnation
Coffee-Mate Buitoni
10 Worldwide Maggi
corporate Perrier
brands
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 Product Brand
• Product branding is one extreme of branding strategy.

• Fiercely driven by customer logic.

• Product acquires distinct position in customer’s mind.

Customers connect easily with product since what brand
represents to them is clear.

• Hindustan Lever Limited - corporate has many product

brands
Lux – promoted as celebrity status product – toilet soap
for movie stars.
Rexona - promoted as gentle soap with natural oils for
good effect on skin.
Liril - product brand, show cased as ‘freshness soap’.
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• Product branding delivers no.of benefits to company.

• Company will be in position to cover entire market

spectrum through multiple product brands.

• Company following product branding is better positioned

to venture into unrelated areas without being subjected
to market scrutiny.

• However drawbacks of product branding are essentially

cost based.

• Creating individual product brands - expensive exercise.

• Successful brand launch in India costs between

Rs.5 crores to Rs. 50 crores.

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 Line Branding
• Line – in context of product mix – various product lines
company have in its total portfolio.

• Philips - product lines - television, video/audio equipments,

personal care, communication, lighting and house hold
appliances.

• Each line is headed by Line Manager.

• Seeks to penetrate customer rather than penetrating

market.

• Seeks to fulfill all complementary needs that surround

basic need.

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 Range Branding
• Line branding restricts expansion into nearby territories
which complement or support main product’s usage.

• Range branding is not restrictive in this sense.

• Brands can move beyond complements

• All products share common promise which stems from

company’s or range brand’s area of competence.

• Products are tied together by single brand concept.

• Nestle – Maggi – noodles, sauces – Nescafe - Kitkat

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 Umbrella Branding
• Umbrella branding has been particularly favoured by
companies of East.

• LG uses its name on products like microwave oven,

refrigerators, computer monitors, televisions, DVDs, air
conditioners.

• Hyundai products extend from automobiles, satellites,

construction projects and turnkey engineering.

• Umbrella brands scores well on dimensions of economics.

• Using umbrella brand companies enter into new markets,

like TATA’s successful venture into passenger cars.
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 Source / Double Branding
• Source brand strategy combines company’s name with
product brand name.

• It is hybrid of umbrella brand and product brand strategy.

• Product is given brand name and it is combined with

name of company.

• Also called Double Branding.

• Chetak - name of scooter and Bajaj - name of company.

• Pulsar - name of bike and Bajaj - name of company.

• Both names enjoy equal importance and given equal

status in brand’s communication. 38
 Endorsement Branding
• Endorsement brand strategy - modified version of double
branding.
• It makes product name more significant and corporate
brand name is relegated to lesser status.

• Unlike Product Brand, Endorsement Brand discloses

identity of maker, making it small part of brand.

• Kit Kat communicates it is Nestle product

• Cinthol gives signal that it is Godrej product.

• Endorsement branding strategy gives freedom to brand

to take independent direction.

• Company’s name sits back as assurance of quality.

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 CHOOSING BRANDING STRATEGY
1. Market Size
High cost intensive strategy.
Minimum investment to be made to get brand awareness
and image.
Necessitates achieving critical share in market.
When market size is smaller, is not growing or growing at
very slow rate, achieving critical market share becomes
difficult.

2. Competition
Competition implies how fiercely market is contested.
When competition is less intense, company’s are not
motivated towards branding.
Competition forces manufacturers to focus on consumer,
adopts branding.
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3. Resources
Branding is definitely not option for resource starved
company.

Companies like Pepsi and Coke are deep pocketed and

have resources to create and support brand.

4. Product Newness
Today’s market environment is characterized by brand
proliferation.

As brands crowd retail shelves, distinctiveness becomes

essential to be successful brand.

Innovation in product’s features, product promotion, after

sales service will help to achieve distinctiveness to brand. 41
5. Nature of Brand
A brand may be functional or symbolic.

Functional brands are rigidly defined by their functions.

This limits their ability to be marketed in a wide market area

or all types of markets.

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 BENEFITS OF BRANDING
TO BUYER:

• Help buyers identify product they like /dislike.

• Identify marketer

• Helps reduce time needed for purchase.

•
• Helps buyers evaluate quality of products especially if
unable to judge products characteristics.

• Helps reduce buyers perceived risk of purchase.

• Buyer may derive a psychological reward from

owning brand, i.e., Rolex or Mercedes. 43
TO SELLER:
• Differentiate product offering from competitors
• Helps segment market by creating tailored images
• Brand identifies company’s products making repeat
purchases easier for customers.
• Reduce price comparisons
• Brand helps firm introduce new product that carries
name of its existing products, lower - company’s
design, advertising and promotional costs.
Sony - Televisions, Camera / Raymonds – apparel,
cosmetics
• Easier cooperation with intermediaries with well
known brands
• Facilitates promotional effort.
• Helps foster brand loyalty helping to stabilize market
share.
• Firms may be able to charge a premium for brand. 44
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 Steps in Brand Creation
STEP 1
1. Work out business, product core competencies.
what you achieve for customer, not necessarily what you
do.
Good apparel shop's core competence is selling apparel
that satisfies its customers — not just selling apparel.

2. Assess existing and potential customers and find out

what they like and what they don't.
For example, if they are driven by competitive pricing,
there is little point in presenting as premium-price
supplier of same products offered by competitors.

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3. Find out how customers and employees feel about
business.
Reliable? Caring? Cheap? Expensive? Luxurious?
Later in process, these emotional responses (brand
values) will form basis of Brand Message.

4. Define how favourably business is viewed by customers

and potential customers — this is perceived quality.
Do they trust product?
Do they know exactly what it does for them?
What do they think of when brand is mentioned to them?
Low perceived quality will restrict or damage business.
High perceived quality gives platform to grow.
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5. Consider how far can business be stretched
with its current customer perception without
moving away from core competencies. Amount
of change offered is Brand Stretch.

Shop known for selling men’s apparels could

also consider selling accessories and personal
care products without going outside its Core
Competencies.

But selling home furnishing products may stretch

its brand too far.
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STEP 2
Pulling the Elements Together
1.Assess core competencies and current product position,
start to define brand identity.
2. Decide who will be MD / Brand Director / Independent
Agencies
3. Discuss core competencies and brand values with
employees and customers.
what you think about your business is not necessarily
what customers or employees think. Brand must reflect
what customers and employees think.
4. Note agreed core competencies and brand values,
making sure that none of them conflicts with brand
stature.
For example, for employees that your business means
'high quality' and customers associate you with 'cheap
and cheerful', your branding is already damaged.
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STEP 3
Creating a Brand
1. Once worked out core competencies, brand values,
perceived quality and brand stretch, communicate them
to customers.
2. Build message into everything customer or potential
customer sees and hears before they have any direct
contact with business.
Make sure company literature reflects brand values. If
necessary, redesign logo and company stationery so it
provides immediate visual link to brand values.
3. Review systems and make sure every point of contact
that customer or potential customer has reflects brand
values.
For example, if being friendly is one of brand values,
make sure anyone who answers telephone or has direct
contact with customers is friendly.
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STEP 4
Managing the Brand
1. Brand will not work instantly — will develop strength over
time as long as business consistently communicates and
delivers brand values to customers.
2. Keep all staff involved in brand, as staff will be
responsible for delivering brand.
Discuss brand values regularly with staff. Encourage to
offer suggestions to improve systems so that brand
values can be more easily delivered.
3. Monitor customers' response to brand regularly and
continually review how brand values are communicated
to them.
Get regular feedback from friendly customers and find
out if what business is doing for them matches
expectation brand creates. Ask dissatisfied customers or
former customers too — learn useful lessons about
brand through honest criticism.
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4. Regularly review products, services and systems to
make sure they efficiently back up brand message.

5. Once brand is developed within own business and

existing customers, you can use it to attract new
customers.

6. Use core competencies to show benefits of business

to potential customers.

7. Advertisements and sales literature to potential

customers must be visually and emotionally consistent
with what provide to existing customers.

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