Branding and Brand Equity

Session 11
Learning Outcomes
Describe the principles of branding and explain the
different types of brands
Understand the fundamentals of brand equity, and its
management.
Understand the important decisions in developing a
branding strategy.
Review Interbrands global ranking and Brand Equity
Indian Brands ranking
Review the 22 Immutable Laws of Branding
Cinthol
Launched in 1956. Stayed as a single product for three
decades. Re-launched on freshness platform.
Variants such as Cinthol Lime, Cinthol Fresh, Cinthol
Cologne, Cinthol Deo, Cinthol Fresh Aqua.
Brand extension to include deodorant sprays and talcum
powder.
Main target Indian outdoor man.
Use of film stars as brand ambassadors to communicate the
freshness and deodorant promise.
Change in portfolio, communication, packaging and other
marketing mix keeping the same basic promise.

Brand and Branding
4
A brand is a name, term, sign, symbol or design,
or a combination of them, intended to identify the
goods or services of one seller or group of sellers
and to differentiate them from those of
competitors.
Branding is endowing products and services with
the power of the brand.
What was the origin of the word brand and branding?
The Role of Brands
5
Identify the
maker
Help in
differentiation
Develop
customer
loyalty
Assist in
integrated
marketing
communication
Signify quality
Serve as a
competitive
advantage
Secure price
premium
Contribute to
corporate
identity
programme
Provide legal
protection
Brand Equity
Measure of the value of a brand in terms of the
customer viewpoint.
Three key ingredients of consumer based equity are:
Differences in consumer responses. Lack of differences
result in prices being the main deciding factor.
Consumers brand knowledge through images,
experiences and beliefs.
Perceptions, preferences and behaviour.
It results in better prices, market shares and
profitability.

Advantages of Strong Brands
7
Improved
perceptions of
product
performance.
Greater loyalty.
Less vulnerability
to competitive
marketing actions.
Less vulnerability
to marketing
crises.
Larger margins.
More inelastic
consumer
responses to price
changes.
Greater trade
cooperation and
support.
Increased
marketing
communication
effectiveness.
Additional brand
extension
possibilities.
Possible licensing
opportunities.
Greater financial
market returns
Brand Equity Models
Brand Asset Valuator (BAV)
Brandz
Brand Resonance Model
8
Brand Asset Valuator
Developed by Young and Rubicam based on research
with 800,000 customers across 51 countries.
It compares the brand equity of thousands of brands
across hundreds of categories.
The Four Brand Pillars of BAV
Differentiation has three important components
Different (Standing Out) Unique (Brand Personality) and
Distinctive (Brand Prestige and Pricing Power)
As brands mature differentiation declines
Relevance is the factor that attracts and retains the
customers. It is the staying power.
Esteem the extent to which consumers like a brand and
hold it in high regard. It denotes popularity and quality.
Knowledge Customers have understood what the brand
stands for
Measuring the relationship among the four pillars is crucial
in diagnosing the health of the brand.

10
Brand Strength and Brand Stature
11
Brand Asset
Valuator
Brand
Strength
Brand
Stature
Differentiation
Relevance Esteem Knowledge
POTENTIAL FOR
GROWTH
CURRENT
STRENGTH
LEADING LAGGING
Brands ability to defend itself
and generate economic value
Brands pervasiveness in the market. It
declines after brand strength erodes.
BAV Power Grid
12
Brand Dynamics Pyramid
Nothing else beats it Bonding
Does it offer some thing
better than others?
Advantage
Can it deliver? Performance
Does it offer me
some thing ?
Relevance
Do I know
about it?
Presence
Strong Relationship
High share of category
expenditure


















Weak Share
Low share of category
expenditure




13
Developed by Millward Brown and WPP. Brand building follows a sequential series
of steps, each contingent upon successfully accomplishing the preceding one
Brand Resonance Pyramid
Building Brand Equity
15
Brand elements
Integrated marketing activities
Brand associations
Brand Elements
16
Branding
Jingles
..\Videos\AirTel Ad -
A.R.Rahman.mp4
..\Videos\Airtel old.flv
..\Videos\Boss Film The
Smartphone Network.mp4
Characters
Logos
URLs
Slogans
Brand Name
Symbols
www.amazon.com
Brand Elements
17
Brand element choice criteria
Memorable and short
Meaningful and credible
Likeable and appealing
Transferable across products and geographies
Adaptable and updatable
Protectable should not become generic
Developing brand elements
Should be inherently descriptive and persuasive.
Should capture intangible benefits LIC, Welcomgroup
Designing Holistic Activities
18
Brands are built through different touch points and
not only through advertising.
Brand contacts are now being made through:
Consumer communities
Events marketing
Sponsorships
Interactions with company personnel
Social cause marketing
Integrated marketing activities across product,
packaging, price, place and promotion.
Leveraging Secondary Associates
Brand Equity can also be built
by linking the brand to other
information in customer
memory
Links can be to:
Company
Geography
Other brands
Characters
Endorsements
Sponsorships
Awards
19
Brand Communities
A business strategy not a marketing strategy.
Meant to serve the people that comprise them.
Cultivate the communities and the brand will grow.
Communities should have advocates as well as critics.
They should not concentrate only the opinion leaders
but build the community as a whole.
Social networks are only a tool and not the strategy.
Successful brand communities need not be manged
and controlled.
Measuring Brand Equity
21
Marketing
Program
Investment
Customer
Mind-set
Brand
Performance
Shareholder
Value
VALUE
STAGES
Product
Communication
Trade
Employee
Other
Awareness
Associations
Attitudes
Attachments
Activities
Price premiums
Price elasticities
Market share
Expansion success
Cost structure
Profitability
Stock Price
P/E Ratio
Market
Capitalisation
Program
Multiplier
Customer
Multiplier
Market
Multiplier
Clarity
Relevance
Distinctiveness
Consistency
Competitive reactions
Channel support
Customer size and
profile
Market dynamics
Growth potential
Risk profile
Brand contribution
MULTIPLIERS
Interbrand Brand Valuation Method
On a 100 point
scale using 10
dimensions
Net Operating Profit After Tax
Weighted average cost of Capital
Difference = Economic Profit
calculated for five year forecast
Demand for a brand
in excess of demand
if unbranded
conducted through
survey, expert panel
and historical data
Inverse of brand
strength on an
algorithm scale
Top Ten Global Brands - 2013
RANK
LY
Rank
BRAND
VALUE
$ million
CHANGE
1 2 Apple 98,316 +28%
2 4 Google 93,291 +34%
3 1 Coca Cola 79,213 +2%
4 3 IBM 78,808 +4%
5 5 Microsoft 59,546 +3%
6 6 GE 46,947 +7%
7 7 McDonalds 41,992 +5%
8 9 Samsung 39,610 +20%
9 8 Intel 37,257 -5%
10 10 Toyota 35,346 +17%
01-23
Source: Best Global Brands 2013 by Interbrands

Indias Top Brands - 2014
24
Indias Top Brands - 2014
25
Indias Top Brands - 2014
26
Indias Top Brands - 2014
27
Indias Top Brands - 2014
28
Branding
Types Names
29
Manufacturer Brands
Private Label Brands
Generic Brands
Individual names
Blanket family names
Corporate name individual
name combination
Devising a Branding Strategy
30
Develop new brand elements
Apply some of the existing brand elements
Use a combination of old and new branding elements
Branding Terms
31
All products sold under a particular brand
Brand line
Assortment of all brand lines
Brand mix
Specific brand lines made for a channel
Branded variants
Use of an established brand to introduce a new product
Brand extension
Combining new brand with an existing brand (parent brand)
Sub-brand
Expansion within category
Line extension
Expansion to other categories
Category extension
Licensing of brand names
Licensed product
Brand Portfolio
32
A set of all brands and brand lines a particular firm
offers for sale in a particular category or market
segment.
Basic principle is to maximise customer coverage and
avoid brand overlap.
Ability to add or drop brands to maintain suitable
portfolio
Roles played by brands in portfolios:
Flankers
Cash cows
Low end entry level
High end prestige
Brand Extensions
Advantages Disadvantages
33
Improved odds of new
product success
Cost reduction in launch
Renew interest and
reinforce parent brand
Line extension trap
Brand dilution
Cannibalisation effect
Losing out on building a new
strong brand
Cobranding
34
2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Ingredient
Branding
Cooperative
Branding
Complementary
Branding
Types of
Cobranding
Brand Personality
Customers will align with brands which reflect their own personality
The 22 Immutable Laws of Branding
The power of a brand is inversely
proportional to its scope
The Law of
Expansion
A brand becomes stronger when
you narrow its focus
The Law of
Contraction
The birth of a brand is achieved
with publicity, not advertising
The Law of
Publicity
Once born, a brand needs
advertising to stay healthy
The Law of
Advertising
36
The 22 Immutable Laws of Branding
A brand should strive to own a word in
the mind of the consumer
The Law of the
Word
The crucial ingredient in the success of
any brand is its claim to authenticity
The Law of
Credentials
Quality is important, but brands are not
built on quality alone
The Law of
Quality
A leading brand should promote the
category not the brand
The Law of the
Category
37
The 22 Immutable Laws of Branding
In the long run a brand is nothing
more than a name
The Law of the
Name
The easiest way to destroy a brand
is to put its name on every thing
The Law of
Extensions
In order to build the category, a
brand should welcome other brands
The Law of
Fellowship
One of the fastest routes to failure is
giving a brand a generic name
The Law of the
Generic
38
The 22 Immutable Laws of Branding
Brands are brands. Companies are
companies. There is a difference
The Law of the
Company
What branding builds, sub-
branding destroys
The Law of
Sub-brands
There is a time and place to launch
a second brand
The Law of
Siblings
A brands logotype should be
designed to fit the eyes. Both eyes.
The Law of
Shape
39
The 22 Immutable Laws of Branding
A brand should use a colour that is
opposite of its major competitors
The Law of
Colour
There are no barriers to global branding.
A brand should know no borders.
The Law of
Borders
A brand is not built overnight. Success is
measured in decades, not years.
The Law of
Consistency
Brands can be changed, but only
infrequently and very carefully.
The Law of
Change
40
The 22 Immutable Laws of Branding
No brand will live
forever. Euthanasia is
often the best solution
The Law of
Mortality
The most important
aspect of a brand is its
single mindedness.
The Law of
Singularity
41
Next Session
42
Whats in a Name Case
Deliverables
Single sheet by all students
Power point by all groups
Reading Chapter 10