Brand Building Chptr1 - [PDF Document]
Transcript of Brand Building Chptr1
7/29/2019 Brand Building Chptr1
Prof. Chaitali Chandarana
Brand: Meaning
People do not buy products, they buy brands. Successful
organizations have the power of their brands as the
cornerstone of their success.
The word brand has its origin in the Norwegian word 'Brand'
which means 'to burn'. In the ancient times farmers used to
put bum marks on their livestock to distinguish theirpossessions
A name, a term, a symbol or a design or a combination ofthese, that is intended to identify the products or services of
one business or group of businesses and to differentiate
them from those of competitors.
The sum of the expectations that a customer or stakeholderhas when purchasing a product or dealing with an
The brand is a piece of real estate you occupy in a persons
mind, and the related impressions it leaves behind.
Interpreations of a Brand
According to de Chernatony & Dall'Olmo Riley (1998),
various interpretations can be drawn from a brand. They are
I.Input perspective
4. Risk Reducer
7.Cluster of Values
II. Output Prespective:
III. Time Prespective:
Evolving entity
Ever Changing Competetion.
Branding is about how business motivates a consumer to make
When does a brand take on something special and become asuper brand or a power brand.
There are many instances where brand names become so
recognized that they actually become a generic name for that
The key to brand enthusiasm is to move beyond your product's
function & build an emotional connection with consumers.
Consumers know brands, express about brands, think about
brands, feel about brands, com pare brands, choose brands,recommend brands, reject brands, buy brands, and do not buy
brands through a combination of
Process of Branding BRAND RELATIONSHIP= BRAND IMAGE + BRAND
BRAND IMAGE = BRAND ASSOCIATION + BRAND
BRAND ASSOCIATION = BRAND LOOKS + BRAND
Advantages to the Producer
Brand loyal customers are a source of repeat sales.
A brand enables a company to build a reputation for its products
and creates an image in the public mind.
It facilitates the introduction to new products in the market. Branding is necessary for the sales promotion and building a
demand for the product among the customers in a selective
A brand distinguishes and differentiates a product from the
goods of competing companies. Branding assists in the maintenance of a proper control over the
price, quality and other features of the product.
Limitations for the Producer
The responsibility for maintaining the quality and the
standard of the product falls on the producer
Some products, such as raw materials, do not easily lendthemselves to branding.
The manufacturer, in order to create an acceptance of the
brand by the consumers, has to incur heavy expenditure.
The retailer and the wholesaler may not be willing to stock
the goods if the brand is not popular.
Advantages to the Consumers
Brands distinguish and differentiate the goods of different manufacturers
and this fact enables the consumers to choose their products.
Consumers can finally select the brand they prefer after using different
branded goods and develop brand loyalty.
The branded goods assure a certain quality and standard
Certain brands acquire a great popularity.
For the customer, shopping becomeseasy and pleasurable,
Limitations for the Consumer
Confusion to choose the appropriate & proper brand.
Popular branded goods cost more, which is unreasonable.
Sometimes quality and standard deteriorate and are not
maintained at the same level.
Manufacturers try to pass on sub-standard goods by adopting
high pressure sales and advertising campaigns for their brands.
Advantages of Strong
Greater marketing communication effectiveness
More appreciative customer response to price increases anddecreases
Less vulnerability to competitive marketing actions
Possible licensing/franchising opportunities
Greater brand extension opportunities
Manufacturers Brands: Name is owned and advertised by the
manufacturer or under their guidelines e.g. Godrej Cold Gold.
Distributors Or Private Brands: Name is owned and controlled
by a wholesaler or retailer e.g. Apna Bazar.
ADVANTAGES OF PRIVATE
BRANDING to Retailer
Reduce producer domination in the marketplace
Customer sales increase
An opportunity to differentiate and provide variety More freedom in your pricing strategy
Positive control over stock keeping inventory
Better bargaining position in a depressed economy
Disadvantages of Private Branding to
Perceived as less powerful in the marketplace as they dont promote
Low price equates to low quality
Lack of financial support from suppliers
If the product fails, the consumer doesnt forgive you
A negative backlash on their image
Financial control concerns
Lower turnover, resulting in lost total sales per linear metre
Excessive focus on the private label at the expense of other products
Advantages of Private Branding to
It keeps out a competitor from using this opportunity
They can get into the marketplace at a lower cost
It is an opportunity for smaller suppliers who dont have the
promotional capabilities to enter a bigger marketplace
The supplier can get more shelf space in the store.
An opportunity to build strategic partnerships with selected
Disadvantages to Producer
The relationship with the retailer could be threatened if the
product doesnt perform
Other suppliers may introduce cheaper private labels and
drive margins downwards
High inventory costs and low profit margins
Advantages to Consumer
A guarantee of the same quality for a serious price
More variety within the category.
A trusted retail name equals trust in the product
Product provides a need based on a want.
Disadvantages to Consumer
Previous customer failures could effect the whole private labelrange in a store e.g. if their cereals arent good, then their jam
Simplifies handling or tracing
Legal protection of unique features
Signal of quality level to satisfied customers
Means of endowing products with unique associations Competitive Advantage
Identifies the Product SourceAssignment of responsibility to maker
Search cost reducer
Signal of Quality
Promise, bond, or pact with the make of the product.
Brand building stratergies