Introduction To Branding
Introduction To Branding
Introduction To Branding
BRANDING
• Why do companies such as Coca-Cola,
Microsoft, IBM and Disney seem to achieve
global marketing success so easily? Why
does it seem such an effort for others?
• Why do we, as consumers, feel loyal to
such brands that the mere sight of their logo
has us reaching into our pockets to buy their
products?
The meaning of brands
• Brands are a means of differentiating a
company’s products and services from those of its
competitors.
• There is plenty of evidence to prove that
customers will pay a substantial price premium
for a good brand and remain loyal to that brand. It
is important, therefore, to understand what brands
are and why they are important.
• McDonalds sums this up nicely in the following
quote emphasizing the importance of brands:
• “…it is not factories that make profits, but
relationships with customers, and it is company
and brand names which secure those
relationships”
• Businesses that invest in and sustain leading
brands prosper whereas those that fail are left to
fight for the lower profits available in commodity
markets.
• “If Coca-Cola were to lose all of its
production-related assets in a disaster, the
company would survive. By contrast, if all
consumers were to have a sudden lapse of
memory and forget everything related to
Coca-Cola the company would go out of
business.”
• Coca-Cola
What is a brand?
• One definition of a brand is as follows:
• “A name, term, sign, symbol or design, or a
combination of these, that is intended to identify the
goods and services of one business or group of
businesses and to differentiate them from those of
competitors”.
• Interbrand - a leading branding consultancy - define a
brand in this way:
• “A mixture of tangible and intangible attributes
symbolized in a trademark, which, if properly
managed, creates influence and generates value”.
Brand Equity
• “Brand equity” refers to the value of a brand. Brand
equity is based on the extent to which the brand has
high brand loyalty, name awareness, perceived
quality and strong product associations. Brand
equity also includes other “intangible” assets such as
patents, trademarks and channel relationships.
Brand image
Manufacturer’s
Manufacturer’s Private
Private Brand
Brand
Brand
Brand
Individual
Individual Family
Family Combi-
Combi- Individual
Individual Family
Family Combi-
Combi-
Brand
Brand Brand
Brand nation
nation Brand
Brand Brand
Brand nation
nation
Manufacturers’ Brands Versus
Private Brands
Manufacturers’
Manufacturers’ The
The brand
brand name
name of
of aa
Brand
Brand manufacturer.
manufacturer.
A
A brand
brand name
name owned
owned by by aa
Private
Private wholesaler
wholesaler or
or aa retailer.
retailer. Also
Also
Brand
Brand known
known as
as aa private
private label
label or
or store
store
brand.
brand.
Types of brand
Marketing
Marketing several
several different
different
Family
Family products
products under
under the
the same
same
Brand
Brand brand
brand name.
name.
Branding Policies
• First question is whether to brand or not to brand.
Homogenous products are difficult to brand Branding
policies are:
• Individual Branding: Naming each product differently
P&G, facilitates market segmentation and no overlap.
• Overall Family Branding: All products are branded with the
same name, or part of a name, IE Nokia, promotion of one
item also promotes other items.
• Line Family Branding: Within one product line.
• Brand Extension Branding: Use one of its existing brand
names as part of a brand for an improved or new product,
usually in the same product category.
75% new products are brand extensions!!
1. Coca-Cola
• $67,000 million
• Based in U.S.
• Flagging appetite for soda has cut demand for Coke, but the
beverage giant has a raft of new products in the pipeline that could
reverse its recent slide.
2 Microsoft
• $56,926 million
• Based in U.S.
• Threats from Google and Apple haven't yet offset the power of its Windows and Office monopolies.
•
3 IBM
• $56,201 million
• Based in U.S. Having off-loaded its low-profit PC business to Lenovo, IBM is marketing on the
strategic level to corporate leaders.
•
4.GE
• $48,907 million
• Based in U.S. The brand Edison built has extended its reach from ovens to credit cards, and the
"Ecomagination" push is making GE look like a protector of the planet.
•
5.Intel
• $32,319 million
• Based in U.S. Profits and market share weren't the only things slammed by
rival AMD. Intel's brand value tumbled 9%, as it loss business from high-
profile customers.
6.Nokia
• $30,131 million
• Based in Finland .Fashionable designs and low-cost models for the
developing world enabled the mobile phone maker to regain ground
against competitors.
7.Toyota
• $27,941 million
• Based in Japan. Toyota is closing in on GM to become the world's
biggest automaker. A slated 10% increase in U.S. sales this year will
help even more.
8. Disney
• $27,848 million
• Based in U.S. New CEO Robert Iger expanded the brand by buying
animation hit-maker Pixar and beefing up digital distribution of TV
shows through the Internet and iPods.
9.McDonald's
• $27,501 million
• Based in U.S. A new healthy-living marketing campaign—and the
premium-priced sandwiches and salads that came with it—have led to
a fourth year of sales gains.
10.Mercedes-Benz
• $21,795 million
• Based in Germany The new S-Class sedan and M-Class SUV are
helping repair a tarnished quality reputation. High costs and weak
margins will take longer to fix.
Here's how we calculate the power
in a name