brand Flashcards
List the 7 brand based business models used in the course.
- Product line extension
- Franchising
- Brand extension
- Merchandising
- Co-branding
- Brand licensing
- Brand diversification/Multi brands
Which of the brand based business models involves creating both a new brand and a new product category?
Brand diversification/Multi brands
What’s the reason to do brand diversification/Multi brands
Often to attract different groups and
markets. The brands could also be varying quality and
price.
What is a product line extention? Give an example of a product line extention..
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
What is a franchise? What parts needs to be included in order for there to be a franchise?
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
What are some advantages for a Franchisor compared to “regualar” expantion
Expanding without
investments
- Expanding without employees
- Efficient entrepreneurs
- Controlled distribution
- Benefits of scale
What are some advantages for a Franchisee compared to a “regular” process of starting a company?
Proven&concept Turn Key business Instructions and manuals Support Brand Benefits of scale
Advanced:
What are Jonas Ideströms 7 factors for analysing if a concept is suitable for a franchise and what do they mean?
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?
What is a brand extention? Give a definition and example.
The same established brand is
used for a product in a new type
of product category.
Chanel on skis
Give some cons on a brand entering a new product category by for example brand extention or co-branding.
• 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
What constitutes a brand in trademark law?
Anything that can be graphically represented.
What is Kellers definition of a brand?
A brand is a set of mental associations, held by the consumer, which
add to the perceived value of a product or service
Advanced:
What is Kapferers definition of a brand?
- A brand is a name with the power to influence buyers
- A brand is a shared desirable and exclusive idea embodied in
products, services, places and/or experiences.
What is a brand association?
Brand association is anything which is deep seated in customer’s mind about the brand.
How do you gather brand associations to a brand?
Through the brand touchpoints.
Why is does the brand matter to the consumer?
Simplification: Brands facilitate consumption decisions and save time
- Risk reduction: Brands reduce perceived risk in purchasing decisions
- Emotional trigger: Brands can trigger positive emotions, tied to basic needs
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
- Cost approach - Valuing a brand on the basis of what it cost to create or what it
theoretically would cost to recreate - M - arket approach - Valuing a brand on the basis of comparing it with another brand with available
market transaction information - Income approach - Valuing a brand on the basis of what it contributes to revenues and
earnings discounted back to a NPV - 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. - 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.
What are the three ways to go when registering a trademark?
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)
What is the alternative route to registering a trademark?
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.
What is the basic requirement for registering a trademark?
Distinctive character (1:5 VmL)
There are two headlines for grounds of refusal. Name them and give examples of what is included in them
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)
How long does trademark registration last?
Advanced: What are some grounds for elimination of the trademark?
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
Advanced:
Why is a community trademark registration less secure than it’s Swedish counterpart
Only examination on absolute grounds.
Advanced:
What are some cons and advantages with the Madrid-system (WIPO)?
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
