A BRAND IS MORE THAN A PRODUCT

Organizational
Brand Personality
Associations
PRODUCT
Features
Benefits
Style Symbols
Country
of Origin Design
Brand name
package
User Brand-Customer
Imagery Relationships

Self-Expressive Emotional
Functional Benefits
Benefits
benefits
 HOW VALUES AFFECT BRAND CHOICE

FUNCTIONAL CONDITIONAL SOCIAL

VALUE VALUE VALUE

BRAND CHOICE

EMOTIONAL EPISTEMIC
VALUE VALUE
 WHY IS IT HARD TO BUILD BRANDS?

1. Pressure to
Compete on
Price
2. Proliferation
8. Short-Term of Competitors
Pressures of sales

7. Pressure to BUILDING 3. Fragmenting

Invest Elsewhere BRANDS Markets & Media

6. Bias Against
Innovation
4. Complex Brand
Strategies &
Relationships

5. Bias Toward
Changing
Strategies
 Brand equity models

1) Brand Asset Valuator – Young and Rubicam (Y&R) developed a model of brand
equity called Brand Asset Valuator (BAV). There are four key components – or
pillars – of brand equity, according to BAV:

 Differentiation measures the degree to which a brand is seen as different from

others.
 Relevance measures the breadth of a brand’s appeal
 Esteem measures how well the brand is regarded and respected
 Knowledge measures how familiar and intimate consumers are with the brand.

Differentiation and Relevance combine to determine Brand Strength. These

two pillars point to the brand’s future value, rather than just reflecting its past.
Esteem and Knowledge together create Brand Stature, which is more of a
“report card” on past performance.
 Brand equity models Contd of Slide….

2) Aaker Model – 5 categories of brand assets &

liabilities linked to a brand that add or subtract
from the value of product/service
a) Brand loyalty,
b) Brand awareness
c) Perceived quality
d) Brand associations
e) Other proprietary assets e.g. patents, trademarks,
channel relationships
 Brand equity models Contd of Slide….

3) Brandz – Is based on Brand Dynamics pyramid.

According to this model, brand building involves a
sequential series of steps.
• Presence. Do I know about it?
• Relevance. Does it offer me something?
• Performance. Can it deliver?
• Advantage. Does it offer something better than
others?
• Bonding. Nothing else beats it.
 Brand equity models Contd of Slide….

4) Brand resonance Pyramid – Four steps to brand – building involves 6

brand building blocks.
• Brand salience relates to how often and easily the brand is evoked under
various purchase or consumption situations.
• Brand performance relates to how the product or service meets
customers’ functional needs.
• Brand imagery deals with the extrinsic properties of the product or
service, including the ways in which the brand attempts to meet
customers’ psychological or social needs.
• Brand judgments focus on customers’ own personal opinions and
evaluations.
• Brand feelings are customers’ emotional responses and reactions with
respect to the brand.
• Brand resonance refers to the nature of the relationship that customers
have with the brand and the extent to which customers feel that they
are “in sync” with the brand.
 Brand Resonance Pyramid

4. Relationships
Intense
What about you and me?
active loyalty
Resonance

3. Response =
Positive,
What about you?
accessible reactions
Judgments Feelings

2. Meaning = Strong, favorable &

What are you? Unique brand
Performance Imagery associations

1. Identity = Deep, broad

Salience
Who are you? brand awareness
 Brand Equity by David Aaker
Name
Perceived
Awareness Brand
Quality
Associations

Brand Other
Loyalty Proprietary
Brand
BRAND EQUITY
Assets
Name
Symbol

Provides Value to Customer by Provides Value to Firm

Enhancing Customer’s: by Enhancing:

 Interpretation/ Processing of •Efficiency and Effectiveness of

Information Marketing Programs

 Confidence in the •Brand Loyalty

Purchase Decision
•Prices/Margins
 Use Satisfaction
•Brand Extensions

•Trade Leverage

•Competitive advantage
 Brand Equity
Note:
 Strong brands are managed not for general
awareness but for strategic awareness i.e. to be
remembered for right reasons & avoid being
remembered for wrong reasons.
 Perceived quality  customer satisfaction  ROI
(having more impact than market share, R&D or
marketing expenditure)
 Brand loyalty is enhanced through loyalty
programmes, customer clubs & database marketing.
 THE AWARENESS PYRAMID

Top
of Mind
Brand
Recall
Brand
Recognition
Unaware of Brand

Dominant brand is only brand recalled by high percentage of respondents

 Importance of Brand Awareness
- Brand awareness & familiarity sufficient for favorable consumer
response in low – involvement products
- Brand awareness plays important role in consumer decision-
making through learning ,consideration, choice advantage
- Brand recognition vs brand recall : Brand recognition uses brand
as a cue & brand recall requires consumers to retrieve brand
from memory given product category, needs fulfilled,
purchase/usage situation as cue
- Brand awareness is created by increasing familiarity of brand
through repeated exposure (for brand recognition) & strong
associations (for brand recall).
 The Value of Brand Awareness
Anchor to Which
Other Associations
Can Be Attached

BRAND Familiarity Liking

AWARENESS Signal of
Substance/Commitment

Brand to Be
considered
 Recognition Versus Recall: Graveyard Model

High
Graveyard
Mass
Brands
Recognition

x
Niche Brand

Low Low Recall High

BRAND ASSOCIATIONS Product attributes
Intangibles

Country/geographic area

Customer benefits

Competitors Brand-name Relative price

and symbol

Product class Use/application

Lifestyle/personality Celebrity/person User/customer

 The Loyalty Pyramid

Committed
Buyer

Likes the Brand –

Considers it a Friend

Satisfied Buyer
with switching costs

Satisfied/Habitual Buyer
No Reason to Change

Switchers/Price Sensitive
Indifferent-No Brand Loyalty
 The Value of Brand Loyalty
Reduced Marketing Costs
Reduced Marketing Costs

Trade Leverage
Trade Leverage
BRAND LOYALTY
Attracting New Customers:
•Brand Awareness Created
•Reassurance to New
Customers

Time to Respond to Competitive

Threats
 Creating and Maintaining Brand Loyalty

Treat the Customer Right

BRAND
Stay Close to the Customer LOYALTY
Measure/Manage
Customer Satisfaction
Create Switching Costs

Provide Extras
 The leverages of brand profitability

CORPORATE
RESOURCES

DISTRIBUTION
INVESTMENTS: MKTG INVESTMENTS INVESTMENTS
PRODUCTIVITY, R & D FORECASTING CHANGES (PROXIMITY,
KNOW-HOW, PATENTS OF CONSUMER VALUES AVAILABILITY)
AND LIFE STYLES AND COMMUNICATION

LEVEL OF BRAND RELEVANCE BRAND AWARENESS,

OBJECTIVE QUALITY AND ADAPTATION TO IMAGE, LIKING AND
COST OF QUALITY ITS PRESENT MARKET FAMILIARITY
 The leverages of brand profitability Contd of slide …

COMPETITION MARKET
-OTHER BRANDS PERCEIVED VALUE
- INVOLVEMENT
-DISTRIBUTOR OWN VIS-À-VIS COMPETITION
-PRICE SENSITIVITY
BRANDS - BUYING CRITERIA
- HARD DISCOUNT

INCREMENTAL
LEVEL 0F ATTRACTION COST ADVANTAGES
SUSTAINABLE AND LOYALTY DUE TO MARKET
PRICE PREMIUM LEADERSHIP

EXTENDING BRAND EQUITY

BEYOND ITS MARKET
 From brand assets to brand equity

Brand
Awareness
+ Image
+ Perceived Quality
+ Evocations
+ Familiarity, Liking
____________________
= Brand Assets Brand added value,
perceived by consumers
- Costs of branding
- Costs of invested capital
__________________________
Brand financial value
(Brand equity)

Brand assets are a non-monetary measurement while brand equity is a monetary one.
 Brand Identity Traps

Brand Brand
Image Positioning
Trap Trap

BRAND
IDENTITY
TRAPS

Product-
External Attribute
Perspective Fixation Trap
Trap
 Brand Planning Model

STRATEGIC BRAND ANALYSIS

Customer Analysis Competitor Analysis Self-Analysis
Trends Brand image/identity Existing brand image
Motivation Strengths, strategies Brand heritage
Unmet needs Vulnerabilities Strengths/capabilities
Segmentation Organization values

BRAND IDENTITY SYSTEM

BRAND IDENTITY
Extended
Core

Brand as Brand as Brand as Brand as

Product Organization Person Symbol
1. Product 7. Organization 9. Personality 11. Visual
scope attributes (e.g., genuine, imagery
2. Product (e.g., energetic, and
attributes Innovation, rugged) metaphors
3. Quality/ consumer 10.Brand- 12. Brand
value concern, customer heritage
4. Uses trustworthiness) relationships
5. Users 8. Local vs. (e.g., friend,
6. Country global adviser)
of Origin
 Brand Planning Model Contd. Of slide

VALUE PROPOSITION CREDIBILITY

Functional Emotional Self-expressive Support other brands
benefits benefits benefits

BRAND – CUSTOMER RELATIONSHIPS

BRAND IDENTITY IMPLEMENTATION SYSTEM

BRAND POSITIONING
Subset of the brand identity and To be actively communicated.
value proposition. Providing competitive
At a target audience. advantage.

EXECUTION
Generate alternatives Symbols and metaphors Testing

TRACKING
 Brand Personality Creates Brand Equity

BRAND PERSONALITY
HOW IT CREATES BRAND EQUITY

Relationship Functional Benefit

Self-Expression
Basis Model Representation Model
Model
 Brand Personality: Self expression model

1) Actual self, ideal self, social self, ideal social self

Brand helps to express a personality therefore,
- feelings engendered by brand personality
- Brand as a “badge”
- Brand becomes part of self (extended self)
3) Brand personality & self – expression needs must
fit.
 Brand Personality: Relationship Basis model

1) Brand a friend – aspirational or trusted.

2) What if the brand spoke to you – snobbish/upscale,
performance brands talking down, Power brands
flexing their muscles; intimidated brands showing
their inferiority.
3) Brand as a active relationship partner i.e. brand
behavior affects the brand customer relationship. eg.
A relationship of dependency would be damaged by
an out of stock condition.
Brand Personality: The functional benefit representation model

• The brand personality can also play a more

indirect role by being a vehicle for
representing & cueing functional benefits &
brand attributes. Eg mercedes
sophistication=cue
 Brand Behavior and Brand Personality

BRAND BEHAVIOR PERSONALITY TRAITS

Frequent changes in position, Flighty, schizophrenic

product forms, symbols,

advertising, etc.

Frequent deals and coupons Cheap, uncultured

Advertises extensively Outgoing, popular

Strong customer service, easy-to-use Approachable

package, etc.
Continuity of characters, packaging Familiar, comfortable
High price, exclusive distribution, Snobbish, sophisticated
advertises in upscale magazines
Friendly advertising, endorsers Friendly
Association with cultural events, PBS Culturally aware.
 Kapferer Brand Identity prism

Physique Personality
(Key product & brand attributes) (traits, lifestyle)
I
N
E T
X E
T R
E
N
R
N A
Relationship
A Culture L
(relationship of
L (Core values) I
love,
I friendship, S
S respect, awe) A
A
T
T
I I
O O
N Self –image N
Reflection
(Belonging to a
(of the user club)
profile’s ideal
concept)

PICTURE OF RECIPIENT
 The identity prism

1 Physique – brand attributes, benefits, physical facet (how

does it look)
2 Personality – Character, What kind of person if it were
human
3 Culture – means set of values feeding the brand’s inspiration
(corporate; brand culture)
4 Relationship – how brand wishes to relate to consumers
5 Reflection – user profile (demographic & psychographic) that
consumers would like to be seen as a result of purchasing
the brand. (Hence it is different from target market).
6 Self – image – While reflection, is the target’s outward
mirror, the self – image is the target’s own internal mirror ( I
feel, I am --------)
 The extension of brand management

- Image advertising - Fanzines - Intercommunity events

Aspirational
- Co-branding - Web sites (brand + clients)
fulfillment - Sponsorship - Virtual communities
- Ethical growth
D
e - Advertising - Collector’s or systematic - One-to-one
p - In-store animations additions tied to an event - Recognition and service
t - Built-in experiential (Barbie, Lego etc.) - Co – creation
Experiential h product concepts
- Store tainment
Enhancement o
- Street marketing
f
b
r
a - Loyalty programmes
n
- Product quality - Post-purchase promotions
- Product advantage (cards)
Functional d
- Trial promotion
satisfaction

Time perspective of the relationship

Long-term reciprocal
Short - term transaction Re-purchase
commitment
 Brand Resonance Pyramid

Brand Building Blocks

4. Relationships
Resonance What about you and me
?

3. Response
Judgments Feelings What do I think/feel
about you ?

2. Meaning
What are you?
Performance Imagery

1. Identity
Salience Who are you?
Subdimensions of Brand –building
Blocks
Resona-
nce
Loyalty
Attachment
Community
Engagement
Judgments Feelings
Warmth
Quality Fun
Credibility Excitement
Consideration Security
Social Approval
Superiority Self-respect

Performance Imagery
Primary Characteristics and User Profiles.
secondary Features .
Product reliability.
Purchase and usage
durability, and situations.
serviceability Personality and values.
Service effectiveness, History, heritage,
efficiency, and empathy .
Style and Design. and experiences .
Price .
Salience

Brand Awareness – Recognition & Recall

Category Identification
Needs Satisfied
 Customer-Based Brand Equity Pyramid

INTENSE, ACTIVE
Consumer LOYALTY
Brand
Resonance

POSITIVE,
ACCESSIBLE
Consumer Consumer REACTIONS
Judgemen Feelings
ts
POINTS-OF-
PARITY AND
Brand Brand POINTS-OF-
Performance Imagery DIFFERENCE

DEEP, BROAD
BRAND
Brand Salience AWARENESS
 Brand Positioning

Subset of Identity/ Target Audience

Value of Proposition Primary
Core Identity Secondary
Points of Leverage
Key benefits

BRAND
POSITIONING

Actively Communicate Create Advantage

Augment the Image Points of Superiority
Reinforce the Image Points of Parity
Diffuse the Image
 Strategic Brand Analysis

Customer Analysis Competitor Analysis

•Trends
•Motivations •Brand Image/position
•Segments •Strengths/vulnerabilities
•Unmet needs

STRATEGIC
BRAND ANALYSIS

Self-Analysis
•Existing brand image
•Brand heritage
•Strengths/weaknesses
•The brand’s soul
•Links to other brands
 Brand system
Brand concept
(value proposition)

Brand name and symbols Product or service

 Leveraging the Brand

LEVERAGING
THE BRAND

Line Extensions(Stretching Brand Co-Branding

Line
the Brand Extensions
Extensions Vertically) in different
(variants) in existing Product Classes
In existing Product Class

Product Class

Stretching Stretching Ad Hoc Creating a

Down Up Brand Range
Extensions Brand
 Introducing & Naming
New Products & brand extensions

Same Name New Name

Multiple
Same Line extension branding
product
line

New New
product Brand branding
line extension
 Ayer model: how a family name impacts the sales of a new product
Logic for brand extensions
 Product positioning
 Repetition Awareness of the
 Copy quality new product
 Consumer promotions (advertising recall)
 Degree of involvement

Level of distribution
Packaging % trying within
Family name vs new name 13 weeks after
Promotions, bargains launch
Satisfaction after trying sample
Category penetration

Relative price
Satisfaction after product Repurchase rate
use
Frequency of category
purchases
 Type of brand and ability to extend

Values

Interest

Know-how

Formula
Degree of
product dissimilarity
Product

(A) (B) (C) (D) (E)

Perimeters of brand extension

No-go area

Threats of brand’s capital asset

Extension zone

Latent potential

Outer core

Spontaneous associations

Inner core

Line
extension
 Paths of brand growth and decline

STATUS

FAMILIARITY ESTEEM

NICHE
LEADERSHIP
BRAND
RELEVANCE

NEW

EROSION
DIFFERENCE
 The 3 facets of brand loyalty

BRAND PREFERENCE
(attitudes)

ACTIVE
POTENTIAL COMMITTED
LOYALS LOYALS

PSEUDO
LOYALS

SINGLE PRODUCT
REPEAT PURCHASE

TRIAL OF
LINE EXTENSIONS OR
BRAND EXTENSIONS
 Brand capital and customer capital: matching preferences and purchase behaviour

BRAND CAPITAL
Perceived superiority
YES NO

19% 35%

YES

SONY
CUSTOMER
CAPITAL
Usage

4% 42%

NO
Identity and pyramid models

The 3 layers of brand-

Brand
kernel

Culture Brand
style
Self –
Personality Projection

Physique Reflection Brand

themes
Relationship