brand

Question 1

List the 7 brand based business models used in the course.

Answer 1

• Product line extension
• Franchising
• Brand extension
• Merchandising
• Co-branding
• Brand licensing
• Brand diversification/Multi brands

Question 2

Which of the brand based business models involves creating both a new brand and a new product category?

Answer 2

Brand diversification/Multi brands

Question 3

What’s the reason to do brand diversification/Multi brands

Answer 3

Often to attract different groups and
markets. The brands could also be varying quality and
price.

Question 4

What is a product line extention? Give an example of a product line extention..

Answer 4

The same established brand is used
for a product in the same type of
product category

New design, ingredient, shape,
packaging, scent, etc..

See Coca Cola light/zero or Macbook/iMac

Question 5

What is a franchise? What parts needs to be included in order for there to be a franchise?

Answer 5

The owner of a brand concept
allows a second party to use the
entire concept

The parts of the “business format”:
•Methods of business
•Brand
•Support

Question 6

What are some advantages for a Franchisor compared to “regualar” expantion

Answer 6

Expanding without
investments

• Expanding without employees
• Efficient entrepreneurs
• Controlled distribution
• Benefits of scale

Question 7

What are some advantages for a Franchisee compared to a “regular” process of starting a company?

Answer 7

Proven&concept
Turn Key business
Instructions and manuals
 Support
 Brand
Benefits of scale

Question 8

Advanced:

What are Jonas Ideströms 7 factors for analysing if a concept is suitable for a franchise and what do they mean?

Answer 8

1.Company,owner
organisation - resouces and competence to build a copyright..
2. Profitability - proven profitability of the concept.
3. Key success factors - can success factors be repeated?
4. Capital required - for the frenchisee, to high will reduce the number.
5. Competence of franchisee required - high level will reduce frenchisees
6. Quality assurance - a big mac must taste the same every time.
7. Brand - is it protected by trademarks?

Question 9

What is a brand extention? Give a definition and example.

Answer 9

The same established brand is
used for a product in a new type
of product category.

Chanel on skis

Question 10

Give some cons on a brand entering a new product category by for example brand extention or co-branding.

Answer 10

• Can even more confuse the
consumer
• Poses an even greater risk to the
brand if it fails
• Can cannibalize the head brand
• Can dilute the brand identity

Question 11

What constitutes a brand in trademark law?

Answer 11

Anything that can be graphically represented.

Question 12

What is Kellers definition of a brand?

Answer 12

A brand is a set of mental associations, held by the consumer, which
add to the perceived value of a product or service

Question 13

Advanced:

What is Kapferers definition of a brand?

Answer 13

1. A brand is a name with the power to influence buyers
2. A brand is a shared desirable and exclusive idea embodied in
   products, services, places and/or experiences.

Question 14

What is a brand association?

Answer 14

Brand association is anything which is deep seated in customer’s mind about the brand.

Question 15

How do you gather brand associations to a brand?

Answer 15

Through the brand touchpoints.

Question 16

Why is does the brand matter to the consumer?

Answer 16

Simplification: Brands facilitate consumption decisions and save time

2. Risk reduction: Brands reduce perceived risk in purchasing decisions
3. Emotional trigger: Brands can trigger positive emotions, tied to basic needs

Question 17

Name and shortly explain a few approaches to evaluate the value of a brand

Advanced:
Explain all 5 models used in the brand valuation lecture

Answer 17

1. Cost approach - Valuing a brand on the basis of what it cost to create or what it
   theoretically would cost to recreate
2. M - arket approach - Valuing a brand on the basis of comparing it with another brand with available
   market transaction information
3. Income approach - Valuing a brand on the basis of what it contributes to revenues and
   earnings discounted back to a NPV
4. Royalty Relief - Valuing a brand based on the royalty rate that a company would have had to pay to
   use the brand if it did not own it and instead had to license it from third party.
5. Demand Driver Analysis - Valuing a brand based on the effects of the brand on demand and supply functions in
   order to determine the influence of the brand in the decision-making process.

Question 18

What are the three ways to go when registering a trademark?

Answer 18

Three ways to register
1. National
2. Regional (e.g. EU, through OHIM)
3. International (through WIPO)
• Consider geographical market and
product / service classification
• ® Has no legal function in Sweden
• But breaches marketing laws if used
for a non-registered trade marks (Red
Bull-case)

Question 19

What is the alternative route to registering a trademark?

Answer 19

Establishment - The mark shall be considered
commonly known if it in this country is
known as the mark for the goods or
services provided under the mark
within a considerable part of the circle/
group that the mark is targeting.

Question 20

What is the basic requirement for registering a trademark?

Answer 20

Distinctive character (1:5 VmL)

Question 21

There are two headlines for grounds of refusal. Name them and give examples of what is included in them

Answer 21

Absolute grounds, public interest (2:7 VmL):

• The trademark must not be descriptive of the goods.
• A logo or a device mark must not be too simple.
• 3 D marks must for instance not only consist of a shape which is necessary to obtain a technical result.

Relative grounds, private interest (2:8, 2:10 VmL)

• Prior trademark
• Prior company name
• Surname
• Artist name
• Copyright (book title, photograph, painting)

Question 22

How long does trademark registration last?

Advanced: What are some grounds for elimination of the trademark?

Answer 22

10 years at the time for eternity.

Elimination occurs due to:
• Unpaid fees
• Invalidation due to deceptive character, no longer distinctive, contrary to public order or likely to cause offence
• Invalidation due to no use (5 consecutive years) 3:2 VmL

Question 23

Advanced:

Why is a community trademark registration less secure than it’s Swedish counterpart

Answer 23

Only examination on absolute grounds.

Question 24

Advanced:

What are some cons and advantages with the Madrid-system (WIPO)?

Answer 24

Advantages:

• Large area of designation (Covers around 70 countries, including e.g. USA, EU and Japan,Norway, Iceland)
• Simplifies the process when applying for trademarks outside the EU.

Cons:

• Relatively expensive
• Based on existing application or registration, vulnerable due to“central attack”
• Usage required in all designated countries

Question 25

Give some arguments if the trademark office deems the trademark descriptive

Answer 25

Is is possible to argue that the mark is not purely descriptive but suggestive?
• Has any other trademark office granted the mark registration?
• Possible to limit the classes so that only goods that the trademark is not descriptive for is included?

Question 26

What is a descriptive concept in relation to a brand. Give an example.

Answer 26

A ’descriptive concept’ refer to the noun(s)/
the descriptive phrase is used in relation to a
specific brand, to categorize and define what
the brand is.

Volvo XC60
- a sports utility vehicle (SUV)