BRAND A brand is a name design symbol

BRAND • A brand is a name, design, symbol, or any other feature that identifies one seller’s goods or services as distinct from those of other sellers’. • A legal term for brand is trademark. It identifies one item, a family of items, or all items of a seller. If it is used for the firm as a whole, it is called as trade name

BRAND • Brand as a name : Coca Cola, Pepsi etc • Brand is a term : General Motors • Brand is a design : The design of a chain of shops. Eg. KFC • Brand is a symbol: Mercedes is recognized by the symbol

BRAND • CHARACTERISTICS OF A BRAND 1. Consistency 2. Security 3. Other functional and emotional attributes

BRAND • Advantages of a brand o Helps in identification o Stimulates the purchase decision o Creates customer loyalty o Helps the company to maintain leadership position • Disadvantages of a brand o Requires huge investment o Unsuccessful brand will bring negative image to the company ( Prius by Toyota) o Customer may not be willing to pay higher price due to the brand name

BRAND EQUITY • Brand equity is the set of assets linked to a brand’s name and symbol that adds to the value provided by the product or a service to a firm and/or that firm’s customers • The various components of brand equity are: o Brand loyalty o Brand awareness o Perceived quality o Brand association

BRAND EQUITY • Brand Loyalty o It is the consumer’s commitment to repurchase a product or service or word of mouth advocacy o True brand loyalty implies that the consumer is willing to set aside their own desires in the interest of the brand o This will help the producer to reduce the promotion cost • Brand Awareness o The number of customers exposed to the brand name is called as brand awareness o Higher the brand awareness, higher will be the brand equity

BRAND EQUITY • Perceived Quality o The customer perception about the actual quality level of the product • Brand Associations o This explains the attribute of the brand that customer associates with his/her belief. A person may associate the brand for power, strength or protectiveness

BRAND POSITIONING • Brand positioning means the creation of an image in the mind of the customers • Brand managers use three levels of positioning strategies to create the image in the minds of the customers. They are: o Product Attribute o Benefit o Beliefs and Values

BRAND NAME SELECTION • Philip Kotler gives six suggestions to create a successful brand name. They are: o o o The name should suggests something about the product benefits and quality. Eg Appy Fizz Easy to pronounce, recognize and remember. Eg. GE, 3 M, Amul The name should be distinctive. Eg: VIP, Chivas Regal The name should be extendable. Eg. Godrej Should be easily translated into foreign language. Should be capable of registration and legal protection

BRAND SPONSORSHIP • There are four options of sponsoring the brand 1. Manufacturer Brand 2. Private Brand 3. Licensing 4. Co-Branding

BRAND SPONSORSHIP 1. Manufacturer Brand • Brand owned by manufacturer and promoted directly and indirectly is called as manufacturer brand 2. Private Brand (Store Brand) • These brands bearing the store name or store selected vendor name • The basic ingredients of private labels are: a. It must be a unit package b. Re-labeling

BRAND SPONSORSHIP 3. Brand Licensing • It is the legal authorization by the trade marked brand owner to allow another company to use its brand for a fee. Eg. Hugo Boss, Tommy Hilfiger, Lacoste etc • The major advantages of licensing are low cost, free publicity and revenue from royalty fee • The major limitation of branding is lack of manufacturing control 4. Co-Branding • Co-branding is the practice of using the established brand names of two different companies on the same product • The major advantage of co-branding is that the co-brand owners can promote brand leverage and can reduce the cost

BRAND DEVELOPMENT • The different strategies applied in brand development can be shown as follows: EXISTING NEW EXISTING LINE EXTENSION BRAND EXTENSION NEW BRAND NAME PRODUCT CATEGORY MULTI-BRANDS NEW BRANDS

BRAND DEVELOPMENT 1 - LINE EXTENSION • Company uses its well known brand name to introduce items in a given product category such as new forms, flavors, ingredients or package sizes 2 -BRAND EXTENSION • A strategy in which company uses one of its familiar brand names to new product category items • Brand extension gives instant recognition to the brand • Brand extension, if it fails, then it may hurt the parent brand reputation in the market

BRAND DEVELOPMENT 3 -MULTI BRANDS • The technique of introducing the product or items in existing product category with a new brand name • Eg. Hindustan Lever – Lux, Lifebuoy, Breeze etc 4 -NEW BRANDS • The strategy of coming out with new brand for new category products. • In this strategy, company believes that existing brands can not be extended to the new category • This require huge resources

PORTFOLIO DESIGN

1 -BCG MATRIX or GROWTH SHARE MATRIX High MARKET GROWTH RATE Star Question Mark Cash Cow Dog Low High Low RELATIVE MARKET SHARE

P & G Brands ($1 Billion) Gillette, variety of razors for men and women, shaving cream for men, body wash for men, shampoo for men, deodorant and anti-perspirant for men Head & Shoulders shampoo Iams dog and cat foods Olay Personal and beauty products Oral-B inter-dental products, such as Oral. B Glide Pampers & Pampers Kandoo disposable diapers and moist towelettes

P & G Brands ($1 Billion) Pantene haircare products Tide variety of liquid and powder laundry detergents, stain remover for laundry and stain remover pen Wella hair care products Febreze Odor control/Freshener

P & G Brands ($1 billion) Crest toothpaste Dawn dishwashing detergent Downy fabric softener and dryer sheets Lenor fabric softener Duracell batteries and flashlights Fusion five blade cartridge and razors. Gain fresh smelling liquid and powder laundry detergents, liquid fabric softener and dryer sheets