Managing Brands

Khaled Mahmud
Associate Professor
Institute of Business Administration
University of Dhaka

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 What is a BRAND?

A brand is an entity that possesses other dimensions that differentiate it in some way
from others designed to satisfy the same need.
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What is Branding?
• It is an identity.
• It is about keeping a promise.
• When people use brand as a verb that is remarkable.

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Can Anything be Branded

• Physical goods e.g. Lux

• Services e.g. DBBL
• Retailers and Distributors e.g. Agora, Nandan
• Online Products and Services e.g. e-Bay, Amazon, CellBazar,
Bikroy.com

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Can Anything be Branded

• People and Organization e.g. BRAC, Prof.

Yunus
• Sports, Art, Entertainment e.g. Tiger
Woods, Zainul Abedin, Ittadi
• Geographic Location e.g. Cox Bazaar
• Idea and Causes e.g. Alokito Manush Chai
(Bishwa Sahitto Kendro)

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 Marketing Advantages of Strong Brand
• Greater Loyalty (Apple….)
• Endurance to Competition (Toyota in Asia Market)
• Market Sustainability (Google, Microsoft)
• Higher Margin (Asset Developments, Premium Sweets)
• Price Rise Inelasticity (BMW)

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 Marketing Advantages of Strong Brand

• Price Fall Elasticity (Vasavi)

• Trading Advantage (Unilever,
Coke)
• Market Communication
Efficiency (Arong milk)
• Licensing/Franchise (KFC)
• Brand Extension (Dell Printer)
• Secondary brand
Association

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What Are the Strongest Brands?

Source: Forbes, 2017 18

Challenges and Opportunities
• Savvy Customer (i Phone, Google)
• Brand Proliferation (RC – Cola, Lemon, Upper 10)
• Media Fragmentation
(Print, Electronic, Internet, Zipping, Zapping)
• Increased Competition (Mobile Phone, Apparel)
• Increased Cost (Global Operations, Local
Customization)
• Greater Accountability (Short vs. Long Term goal)
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What is Brand Equity?
• A set of stored values that consumers associated with a
Product/Service.

• These associations add value beyond the basic product

functions due to past investments in marketing the Brand.

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CUSTOMER-BASED BRAND EQUITY PYRAMID

4. RELATIONSHIPS =
What about you & me?
RESONANCE

3. RESPONSE =
JUDGMENTS FEELINGS
What about you?

2. MEANING =
PERFORMANCE IMAGERY What are you?

1. IDENTITY =
SALIENCE
Who are you?
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Salience- Who are you?
• Depth of brand awareness
• Ease of recognition & recall
• Strength & clarity of category membership

• Breadth of brand awareness

• Retrieval under various purchase situations
• Retrieval under various consumption situations

(Napa)

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 Performance- What are you?

• Primary characteristics & supplementary features

• Product reliability, durability, and serviceability
• Service effectiveness, efficiency, and empathy
• Style and design
• Price
(Mobile Phone)

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Imagery- What are you?
• User profiles
• Demographic & psychographic characteristics
• Actual or aspirational
• Group perceptions – popularity
• Purchase & usage situations
• Type of channel, specific stores, ease of purchase
• Time (day, week, month, year, etc.), location, and context of
usage
• Personality & values
• Sincerity, excitement, competence, sophistication, & ruggedness
• History, heritage, & experiences
• Nostalgia
• Memories

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Judgment- What about you?
• Brand quality
• Value
• Satisfaction
• Brand credibility
• Expertise
• Trustworthiness
• Likability
• Brand consideration
• Relevance
• Brand superiority
• Differentiation

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Feelings- What about you?
• Warmth (Singapore Airlines)
• Fun (Disney)
• Excitement (Dark Knight, Ronaldo vs. Messi)
• Security (Pajero)
• Social Approval (TIB, CPD, Daily Star)

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Resonance- What about you and me?
• Behavioral Loyalty
• Frequency & amount of repeat purchases
• Attitudinal Attachment
• Love brand (favorite possessions; “a little pleasure”)
• Proud of brand
• Sense of Community
• Kinship
• Affiliation
• Active Engagement
• Seek information
• Join club
• Visit web site, chat rooms

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Brand Positioning- Competition?
• Benefit or Attribute Level
• Emotional Level

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Brand Elements
• Trademarkable devices that serve to identify and
differentiate the brand

• A variety of brand elements can be chosen that

- Inherently enhance brand awareness

- Facilitate the formation of strong, favorable, and
unique brand associations
- Elicit positive brand judgments and feelings

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Brand Name

IBA DU King Khan

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URLs

Bikroy.com

olx.com.bd

ekhanei.com

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Logo & Symbol

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Spokesperson

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Brand Elements
Packaging
Slogan

Character
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 Criteria for Choosing Brand Elements
• Memorable
• Easily Recognized
(Swoosh)
• Easily Recalled (Apple)

• Meaningful
• Credible & Suggestive
(Grameen Check)
• Rich Visual & Verbal
Imagery (CamelBak)

• Appealing
• Fun & Interesting
(Mickey)
• Aesthetics (Jaguar)
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Criteria for Choosing Brand Elements

• Adaptable
– Flexible & Updateable
(Singapore Airlines)

• Protectable
– Legally (MS Vista)
– Competitively (Coke Formula)
• Transferrable
– Within & Across Product
Categories (Sony)
– Across Geographical
Boundaries & Cultures (HSBC)
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Brand Names
Naming Guidelines:

• Descriptive (Computer Source)

• Suggestive (Fantasy Kingdom)
• Compounds (Shada-Kalo)
• Classical (Santoor)
• Arbitrary (Apple, Orthohin)
• Fanciful (Samarkand)

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Brand Names
• Naming Guidelines:
Awareness
Pronunciation/Spelling (Aim, Bata, Tata, Jet Vs. Hyundai, IKEA)
Pleasantness (Ramada, Nivea, Nirvana, Emmy)
Familiarity (Mecca Cola, Boston Chicken, Swiss Chocolate)
High Imagery (Newsweek, Body Shop, Sub-Way)

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Brand Names

• Naming Guidelines:

Associations
Attribute (ColorStay Lipsticks, Energizer Battery, Cleanex Detergent)
Abstract (Obsession Perfume, Maya Birth Control Pill)
Letters (X – File, Games, Box)
Alphanumeric (Fortune 500, BMW – 3,5,7 Series)

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 Brand Mantras
• A brand mantra is an articulation of the “heart
and soul” of the brand.
• Brand mantras are short three to five word phrases that
capture the irrefutable essence or spirit of the brand
positioning and brand values.
• Nike
• Authentic Athletic Performance /Just do it
• Disney
• Fun Family Entertainment

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Brand Mantras & Internal Branding
 Designing a brand mantra:
 Emotional Modifier
(Disney ……. Fun)
 Descriptive Modifier

(Disney ……. Family)

 Brand Function

(Disney……. Entertainment)

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 Brand Mantras & Internal Branding

 Communicate brand mantra:

 Communicate (setting boundaries …… De Beers)
 Simplify (crisp, lively, retainable…… Just do it !!!!)
 Inspire (patriotic, rebellious …… GP, Birla)
 Internal Branding
IBA (We are the best!!!), Harvard

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 Leveraging Secondary Brand
Knowledge to Build Brand Equity

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What is Brand Leveraging?
Brands may be linked to other entities that have their own knowledge structures
in the minds of consumers

Because of these linkages, consumers may infer that some of the associations
that characterize other entities may also be true for the brand

In effect, the brand borrows some brand knowledge and depending on the
associations some brand equity from other entities

This indirect approach of building brand equity is referred to as leveraging

secondary brand knowledge for the brand

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Significance of Brand Leveraging
Brand Leveraging may be important

• If existing brand associations are deficient

in any way

• To create strong, favorable, unique

associations, and positive responses that
otherwise may not be present

• To reinforce existing associations in a fresh

and unique way

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Means of Brand Leveraging
By linking the brand to
• Companies
[from the House of Birlas……]

• Countries or geographic areas

[Japan – Electronic, Germany – Auto]

• Channels of Distribution
[Walmart, Zaibetsu & Kairetsu]

• Other brands – Co-Branding

[GP & Nokia, Formula One & Toyota]

• Characters
[Mickey, Harry Potter – Licensing]

• Spokespersons
[Cindy Crawford, Sachin Tendulkar]

• Events
[Official Sponsor of World Cup] 46

• Other third party sources

Company
• Brand leveraging here happens through the branding
strategies adopted by the company

• A corporate brand may evoke associations of

• Common Product attributes, benefits or attitudes [Apple, Google]
• People and Relationships [Tata, Southern Airlines]
• Programs and Values [Rahimafrooz, Dutch-Bangla, Bodyshop]
• Corporate Credibility [Lloyd’s Insurance, Marks & Spencer]

• Brands and companies are often unavoidably linked to the

category in which they compete
• E.g.: Fuel Industry [Exxon-Mobil, Honda-motorbike]
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Country of Origin
• Choosing brands with strong national ties may reflect a deliberate
decision to maximize product utility and communicate self-image
based on what consumers believe about the products from those
countries [Caviar from Russia, Watch from Switzerland, Diamonds from South Africa]

• Geographic associations are possible at a state, regional or city level

as well [Rajshahi Mango, Darjeeling Tea, Bavaria Machine Works (BMW), Philly Steak]

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Country of Origin
• Country of origin associations can be done by

• The location embedded in the brand name

• e.g.: Air India, American Airlines

• The location combined with the brand name

• e.g.: Bailey’s Irish Cream

• The locations becoming a dominant theme in the brand advertising

• e.g.: Fosters – Australian for Beer

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Country of Origin
Brand Country

Coca-Cola USA

BMW Germany

Gucci Italy

Swatch Switzerland

Foster’s Australia

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Channels of Distribution
• Channels of distribution can create associations through

• The products and brands they store [Aarong, Shopper’s Stop]

• The means by which they sell them [Amazon, e-Bay]

• The advertising and promotion efforts at a retail level [Agora, Walmart]

• Associations related to the store are of key importance [Only available in...]

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Other Brands – Co-Branding

• Co-branding (brand bundling or brand alliance) occurs when two or

more existing brands are combined into a joint product or are marketed
together in some fashion

• E.g.: ICICI Bank HPCL Visa Card

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Advantages of Co-Branding
• Borrow needed expertise [DBBl Visa Card]
• Leverage equity you don’t have
[Danon-Grameen Yoghurt “Shakti”]
• Reduce cost of product introduction [Maruti Suzuki]
• Expand brand meaning into related categories
•Broaden Meaning [Bashundhara-Jamuna ??????]
•Increase Access Points [PEPSI & Pizza Hut]

• Source of additional revenue [TATA & Jaguar]

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Disadvantages of Co-Branding

• Loss of Control [Buyout of Compaq by HP]

• Risk of Brand Equity Dilution [Nokia and GP]

• Negative Feedback Effects [Zahid in Harpic]

• Lack of Brand Focus and Clarity [Sony Telecom]

• Organizational Distraction [Lakme & Tata]

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Ingredient Branding
• It is a Special Case of Co-Branding

• It contains creating equity for materials,

components or parts that are necessarily
contained within other branded products

• e.g.: Dolby noise reduction, Carl Zeiss Lens,

Teflon nonstick coating, Intel inside,
Singapore Airlines – Raffles Class

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Advantages of Ingredient Branding
• For the Supplier of the Ingredient

• Greater sales and higher margins through consumer

pull [Intel Chips, Rolls Royce Engine]
• Better long term supplier-buyer relationships
• Enhanced revenue through twin streams
• The direct revenue from supplies
• Royalty generated through display of ingredient brand

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Advantages of Ingredient Branding

• For the Manufacturer of the Host Product

• Enhancing brand equity
• Entry into new product categories, market segments,
distribution channels
• Sharing of some production and development costs
with the supplier of the ingredient brand

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Disadvantages of Ingredient Branding
• Suppliers unable to sustain high advertising costs
• Loss of Control
• Different Objectives btwn Supplier & Host [Ben n Jerry in Pizza Hut]
• Manufacturers’ Brand Dilution [Carl Zeiss Lens in Economy Mobile]
• Setting the stage for competitive ingredient branding efforts
• No expenditure by the follower on establishing the importance of
the ingredient
• Spends for only establishing superiority of ingredient

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Characters
• Characters are used to leverage brand knowledge through
licensing agreements
• Successful licensors include
Movies Star Wars, Jurassic Park
Cartoon Strip Characters Garfield, Snoopy
Television Characters Sesame Street, Simpsons

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Spokespersons

• Using well-known and admired people to promote

products is a widespread phenomenon with a long
marketing history

• The rational behind these strategies is

• To draw attention to the brand
• To shape perception of the brand on the basis of the
knowledge and perceptions of the famous person

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Potential Problems with Endorsements
• Overuse – endorsing too many products
• Lack of any specific product meaning
• Seen as overly opportunistic or insincere
• e.g.: Amitabh Bachan
• Match between celebrity and product
• Navratna tel – Amitabh Bachan
• Endorsers getting into trouble or their popularity dropping
• E.g.: Mohammad Azharuddin
• Low credibility
• Celebrities endorse only for monies
• Celebrities may distract attention from the brand

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Events
• Sponsored events can contribute to brand equity by

• Improving brand awareness

• Adding new associations
• Improving existing associations

e.g.: Standard Chartered Marathon and Talent Search with the Daily Star,
Femina Miss India, Filmfare Awards

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Third Party Sources
• Seals or Stamps – approved by BSTI
• Endorsements from
• Leading Magazines – Autocar
• Organisations – Dental Association
• Experts – Robert Egbert [Film Critic]
• Published Studies – JD Powers CSI
• Awards – CNBC ‘Car of the Year’

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Branding Strategy
• Branding strategy varies according to product category.

• Branding strategy varies according to product life cycle.

• Even demography changes branding strategy of the same product.

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Some Recent Trends
• Self awareness with cautious financial outlook.
• Flow of information.
• Neuclear identity.
• Era of alternatives.

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Branding and Ethics
• Customers are smart. Do NOT deceive them.
• Tell stories rather than lying.
• Create a brand for long.
• There is no easy way to build a brand.

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Thank you

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