Lecture 3: BRANDING Flashcards
Brand
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.
Brand’s 2 functions
identification function (with respect to core elements)
differentiation function (with respect to competitors)
Brand identity
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
Brand Image
the perceptions about a brand as reflected by the brand associations (hopefully unique and positive) held in consumer memory
Means to express brand identity
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
Brand Elements
Name
Slogan
Logo
Tone
Character
Packaging
Brand Elements have to be..
memorable, meaningful, likeable, adatable, transferable, protectable
(mimilatap)
3 categories of brand
-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
Line Extension
(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.
Brand Extension
(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.
2 Brand Strategies
a. Endorsement Branding
b. Ingredient Branding
c. Co-Branding
Endorsement Branding
A well-known brand supports or endorses a sub-brand.
Example: Nestlé endorsing KitKat, with the Nestlé logo appearing subtly on packaging.
Ingredient Branding
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”).
Co-Branding
Two brands work together to create a single product or experience.
Example: Nike collaborating with Apple for fitness tracking shoes.
Other Brand Strategies
a. Corporate Branding
b. Multi-Brands
c. New Brands
Corporate Branding
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).
Multi-Brands
(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.
New Brands
(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.
Local Branding
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
Global Branding
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.
- Standardization:
* Products and branding are consistent across multiple countries.
Coca-Cola tastes the same and uses the same logo worldwide. - 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.
Brand Portfolio Model
Bastion brand in the middle
Flanker brand in the right and left
Prestige up
Fighter down
Bastion Brand
The main, flagship brand that represents the company’s core identity and generates the majority of revenue.
- Coca-Cola for The Coca-Cola Company.
Prestige Brand
A premium or luxury brand within the portfolio that caters to high-end customers, creating an aspirational image.
* Chanel Beauty under Chanel.
Flanker Brand
A brand positioned to target specific niches or fill gaps in the market, often appealing to segments the core brand might not directly address.
Fighter Brand
A low-cost brand created to compete with discount brands or generics in price-sensitive markets, protecting the bastion brand from price erosion.
Dimensions of Brand Strength- internal
clarity, commitment, governance, responsiveness
Dimensions of Brand Strength- external
authenticity, relevance, differentiation, consistency, presence, engagement
Brand Equity Components (APILO)
-Brand Awareness
- Perfomance/ Perceived Quality
-Other assets
-Brand Loyalty
-Imagery/ Feelings
- Brand Equity Components - Brand Awareness
the association of some characteristics such as a brand name, logo, package, style, etc., with a category need. This is made of:
- Top of mind: the top brands in their consideration set
- Brand recall (unaided recall) refers to the ability of the consumer to correctly generate a brand from memory when prompted by a product category
- 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.)
brand awareness triangle from up to down
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
- Brand equity components: Product/Service Performance and Perceived Quality
— 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)
- Brand equity components: Brand Imagery
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?
- Brand equity components: Loyalty
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
Brand loyalty pyramid - top to the down
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
What great brands do?
- Great brands start inside
- Great brands avoid selling products
- Great brands ignore trends
- Great brands do not stop
- Great brands have extreme attention to detail
- Great brands start inside
- 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
- Great brands avoid selling products
- 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
- Great brands ignore trends
- 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
- Great brands do not stop
Three ways to differentiate the own brand identity
- 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)
- 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
- 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!
- Great brands have extreme attention to detail
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.
