Lecture 3: BRANDING

Question 1

Brand

Answer 1

a brand is a name, term, sign, symbol, design or a combination of these, that identifies the products or services of one seller (or group of sellers) and differentiates them from those of competitors.

Question 2

Brand’s 2 functions

Answer 2

identification function (with respect to core elements)
differentiation function (with respect to competitors)

Question 3

Brand identity

Answer 3

how you want to be perceived

Each brand needs to have a clear, structured, easily understandable communicable brand identity, which has to reflect the brand’s positioning
* It represents a brand’s DNA -> durable and difficult to change

Question 4

Brand Image

Answer 4

the perceptions about a brand as reflected by the brand associations (hopefully unique and positive) held in consumer memory

Question 5

Means to express brand identity

Answer 5

o Vision (or vision statement): declaration of an organization’s objectives (-> broad). Internally and externally communicated. Where the company wants to go. Big picture
o Mission (or mission statement): communicates the purpose of the company: what does it want to accomplish? Internally and externally communicated. The purpose of the product-company how to go to the big picture

Question 6

Brand Elements

Answer 6

Name
Slogan
Logo
Tone
Character
Packaging

Question 7

Brand Elements have to be..

Answer 7

memorable, meaningful, likeable, adatable, transferable, protectable

(mimilatap)

Question 8

3 categories of brand

Answer 8

-Manufacturer brands : developed and marketed by the manufacturers of the product (Cola)
-Own label/ private label brands : developed and marketed by wholesalers or retailers (Great Value by WALMART)
- Generic brands : : indicate the product category (i.e. generic in pharmceuticals) ot associated with any specific company or brand name

Question 9

Line Extension

Answer 9

(Same Category, New Line)
when a brand introduces new variations of an existing product within the same category.
-> Ferrero introducing Kinder Bueno or Kinder Joy. Both are still chocolates but cater to different tastes or formats.
The category remains the same, but there are variations in flavor, size, or type.

Question 10

Brand Extension

Answer 10

(New Category)

When a brand uses its name to enter a new product category that is different from what it’s traditionally associated with.
* Example: Montblanc creating wallets.
* Montblanc is known for luxury pens, but by making wallets, they’re entering the leather goods category.
This strategy leverages the brand’s equity (reputation) to enter a completely new category.

Question 11

2 Brand Strategies

Answer 11

a. Endorsement Branding
b. Ingredient Branding
c. Co-Branding

Question 12

Endorsement Branding

Answer 12

A well-known brand supports or endorses a sub-brand.
Example: Nestlé endorsing KitKat, with the Nestlé logo appearing subtly on packaging.

Question 13

Ingredient Branding

Answer 13

A brand highlights an important component or ingredient provided by another brand to add value.
Example: Intel processors used in laptops (e.g., “Intel Inside”).

Question 14

Co-Branding

Answer 14

Two brands work together to create a single product or experience.
Example: Nike collaborating with Apple for fitness tracking shoes.

Question 15

Other Brand Strategies

Answer 15

a. Corporate Branding
b. Multi-Brands
c. New Brands

Question 16

Corporate Branding

Answer 16

The entire organization promotes itself under one unified name and identity.
Example: Apple markets itself as a cohesive brand across all products (MacBooks, iPhones, iPads).

Question 17

Multi-Brands

Answer 17

(Same category, new brand name)
A company creates multiple brands in the same category to target different market segments.
Example: Procter & Gamble owns Tide, Ariel, and Gain, all laundry detergents targeting different customer preferences.

Question 18

New Brands

Answer 18

(New Category + New Brand Name)
his strategy involves creating an entirely new brand for a new product category, instead of extending the existing brand name.
Companies use this strategy when the existing brand name does not align with the values, target audience, or identity of the new product category.

• Unilever owns multiple consumer goods brands like Dove, Axe, and Lifebuoy, each targeting different markets and segments.

Question 19

Local Branding

Answer 19

These are brands developed and marketed to serve the specific needs of a local market (e.g., a country or region). They are deeply rooted in the culture, tastes, and preferences of that location.

Deep-Rooted Bond with Local Consumers
Adapted to Local Tastes/Needs
Logistics: Distribution networks are optimized for local efficiency.
Strong Community Ties:Local brands often support regional events or initiatives to foster goodwill and loyalty.

• Purpose:
  To cater specifically to the cultural and regional needs of a local population, creating a sense of belonging

Question 20

Global Branding

Answer 20

These brands are standardized and marketed globally to reach a broad, international audience. They focus on universal values and messages to appeal to diverse cultures and regions.

1. Standardization:
   * Products and branding are consistent across multiple countries.
   Coca-Cola tastes the same and uses the same logo worldwide.
2. International Exposure and Market Reach:
   Global brands leverage massive international advertising and distribution networks to dominate markets
   Nike and McDonald’s are instantly recognizable anywhere in the world.

Question 21

Brand Portfolio Model

Answer 21

Bastion brand in the middle
Flanker brand in the right and left
Prestige up
Fighter down

Question 22

Bastion Brand

Answer 22

The main, flagship brand that represents the company’s core identity and generates the majority of revenue.

• Coca-Cola for The Coca-Cola Company.

Question 23

Prestige Brand

Answer 23

A premium or luxury brand within the portfolio that caters to high-end customers, creating an aspirational image.
* Chanel Beauty under Chanel.

Question 24

Flanker Brand

Answer 24

A brand positioned to target specific niches or fill gaps in the market, often appealing to segments the core brand might not directly address.

Question 25

Fighter Brand

Answer 25

A low-cost brand created to compete with discount brands or generics in price-sensitive markets, protecting the bastion brand from price erosion.

Question 26

Dimensions of Brand Strength- internal

Answer 26

clarity, commitment, governance, responsiveness

Question 27

Dimensions of Brand Strength- external

Answer 27

authenticity, relevance, differentiation, consistency, presence, engagement

Question 28

Brand Equity Components (APILO)

Answer 28

-Brand Awareness
- Perfomance/ Perceived Quality
-Other assets
-Brand Loyalty
-Imagery/ Feelings

Question 29

1. Brand Equity Components - Brand Awareness

Answer 29

the association of some characteristics such as a brand name, logo, package, style, etc., with a category need. This is made of:

1. Top of mind: the top brands in their consideration set
2. Brand recall (unaided recall) refers to the ability of the consumer to correctly generate a brand from memory when prompted by a product category
3. Brand recognition is also known as aided recall and refers to the ability of the consumers to confirm that they have seen or heard of a given brand before (packaging, claim, smell ect.)

Question 30

brand awareness triangle from up to down

Answer 30

top of mind
brand recall
brand recognition
unaware of brand

Brand recognition: do u know cola? Yes
Brand recall: what is a soft drink? cola

Question 31

2. Brand equity components: Product/Service Performance and Perceived Quality

Answer 31

— Performance refers to the extent to which the product meets the customer’s utilitarian, aesthetic and economic needs and wants

— Perceived quality is the consumer’s subjective judgement about a product’s overall quality, its excellence and superiority relative to alternatives (important for brand purchase)

Question 32

3. Brand equity components: Brand Imagery

Answer 32

the perceptions about a brand as reflected by the brand associations (hopefully unique and positive) held in consumer memory
1. BRAND: When you think of Teatro alla Scala, what comes to mind? What does Teatro alla Scala mean to you?
2. USER: Who is the typical visitor of Teatro alla Scala? (ask demographics and lifestyle)
3. USAGE IMAGERY: When would you visit Teatro alla Scala? (ask for occasions and moods)
4. BRAND PERSONALITY: If Teatro alla Scala was a person, what would its personality be like?
5. FEELINGS: If I say Teatro alla Scala, what kind of feelings does it evoke?

Question 33

4. Brand equity components: Loyalty

Answer 33

Brand loyalty:
— a strong brand implies that as many customers as possible should be satisfied
— customers who feel they belong to a brand community will return (Jeep, Harley-Davidson, Red Bull)
— customers actively promote your brand to others and function as real ambassadors

Question 34

Brand loyalty pyramid - top to the down

Answer 34

Committed Buyer
Likes the brand- considers it a friend
Satisfied buyer with switching costs
Satisfied/ habitual buyer who has no reason to change
Switchers/ price sensitive - indifferent- no brand loyalty

Question 35

What great brands do?

Answer 35

1. Great brands start inside
2. Great brands avoid selling products
3. Great brands ignore trends
4. Great brands do not stop
5. Great brands have extreme attention to detail

Question 36

1. Great brands start inside

Answer 36

• Putting internal brand culture first: great brands focus on being strong on the inside, in the eyes of their employees and internal stakeholders
• How? Monetary and non-monetary benefits, smart working, realistic objectives,care about employees interests and hobbies, no micromanagement, team building, personal development activities, etc.
• Result: pride to work for a specific company

Execute first, communicate later

Question 37

2. Great brands avoid selling products

Answer 37

• Customers make purchase decisions according to how products (services, experiences, etc.) they buy make them feel or promise to make them feel!
• Talk about the promise behind the product rather than the product itself: emotions boost efficacy -> thanks to memorability
• Connecting through “More than…”

Tools:
* Use moments of truth to gain insights about customers (FMOT: First Moment of Truth-> the first 3-7 seconds when a shopper notices an item in a retail environment; SMOT: Second Moment of Truth: when the consumer takes the product home and interacts with it there) and all touchpoints (the moments/occasions in which the customer gets in contact with the brand)
* Use also qualitative research to learn about the customer’s inner sphere

Question 38

3. Great brands ignore trends

Answer 38

• Trend following is risky: it prevents brands/companies to be at the forefront of innovation
• What to do instead: Challenge ”Business as Usual”
• Ask yourself (and your team): What have we always done like this? What is done because it really gives advantage, what out of habit/conventions?
• What could we do differently than usual? What could we change?
• How could we change it according to consumers’ (actual and prospective) preferences and (new) habits?
• Result: Anticipating and advancing cultural movements

Question 39

4. Great brands do not stop

Answer 39

Three ways to differentiate the own brand identity

1. BE FIRST: When you are “first to market” (first to create a demand and fill it), your brand achieves a strong differentiation advantage of the market leadership position – whether it is real or perceived (i.e. iPad)
2. OWN AN ATTRIBUTE: Identify a brand attribute that no one else is talking about (or one that constitutes a serious weakness for your main competitor) and then adopt it as the defining attribute of your brand
3. SPECIALIZE: Specialize in a target market. By designing your business to appeal specifically to a type of customer, you become known as an expert for that market. This will make you expand!

Question 40

5. Great brands have extreme attention to detail

Answer 40

P&G - Pantene: Packaging design should “interrupt” shoppers’ attention
* P&G developed a set of questions for the FMOT that each package design must answer: Who am I? What am I? Why am I right for you?
* Study of SMOT at home: 20,000 studies, with about 5 million customers involved
* Package redesign: customers often made misdiagnosis of their hair, buying the wrong Pantene. So, instead of designing products for dry/normal/oily hair, new collections were designed around people’s desired effect - e.g. volume, curly or straight hair for instance.