Description
A brand—an intangible asset—is often the most valuable asset of a corporation. Brand owners manage their brands carefully to create shareholder value, and brand valuation is an important management technique that ascribes a money value to a brand, and allows marketing investment to be managed (e.g.: prioritized across a portfolio of brands) to maximize shareholder value.
VIKAS VYAS
PRODUCT:
Anything that is capable of satisfying customer needs can be termed as product.
NEW PRODUCT DEVELOPMENT (NPD): NPD is a process which is designed to develop, test and consider the viability of products which are new to the market in order to ensure the growth or survival of the organization. For example: - High definition plasma, TV, ipod, mp4 players, New car model (e.g. low cost model announced by TATA).
WHY DEVELOP NEW PRODUCT? To add to product portfolio. To replace declining products. To maintain or increase the market share. To take advantage of new technology. To bring new customers.
PRODUCT GROUP-LINE: A product group or product line is a group of brands that are closely related in terms of their functions and the benefits they provide. Example– HCL’s range of PCs or SONY’s range of televisions.
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PRODUCT MIX: The product mix comprises the complete range of products that a company offers to the market. For example:
HLL’s PRODUCT MIX
PRODUCT MIX WIDTH
PRODUCT LINE LENGTH
P. LINE 1 Bath Soaps ?Lux ?Liril ?Pears ?Rexona ?Lifeboy etc
P.LINE 2 Fabric wash ?Surf ?Rin ?Wheel ?Sunlight ?Ala etc
P.LINE 3 Beverages ?Bru ?Brooke bond ?Lipton green ?Taaza ?Taj mahal
FACTORS INFLUENCING CHANGES IN THE PRODUCT MIX: ? Market demand ? Competitor’s actions and reactions ? Quantity of production ? Goodwill of the company 2
? Changes in the company desire
PRODUCT DIFFERENTIATION: In marketing, product differentiation is the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as one's own product offerings. For example: Talcum powder. BRAND: PRODUCTS: Ponds 1) Dream flower 2) Oil control talc 3) Special Fragrance
3
BRAND:
A brand is a collection of images and ideas representing an economic producer; more specifically, it refers to the descriptive verbal attributes and concrete symbols such as a name, logo, slogan, and design scheme that convey the essence of a company, product or service. A brand is a symbolic embodiment of all the information connected to a company, product or service. A brand serves to create associations and expectations among products made by a producer. A brand often includes an explicit logo, fonts, color schemes, symbols and sound which may be developed to represent implicit values, ideas, and even personality. The key objective is to create a relationship of trust. Brand recognition and other reactions are created by the accumulation of experiences with the specific product or service, both directly relating to its use, and through the influence of advertising, design, and media commentary. In non-commercial contexts, the marketing of entities which supply ideas or promises rather than product and services (e.g. political parties or religious organizations) may also be known as "branding".
BRAND NAME: The brand name is often used interchangeably with "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of a brand. In this context a "brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services. A brand owner may seek to protect proprietary rights in relation to a brand name through trademark registration. Most products have some kind of brand identity, from common table salt to designer clothes.
4
BRAND IDENTITY: How the brand owner wants the consumer to perceive the brand - and by extension the branded company, organisation, product or service. The brand owner will seek to bridge the gap between the brand image and the brand identity. Brand identity is fundamental to consumer recognition and symbolizes the brand's differentiation from competitors. Brand identity may be defined as simply the outward expression of the brand, such as name and visual appearance.
BRAND PERSONALITY: Brand personality is the attribution of human personality traits to a brand as a way to achieve differentiation. Such brand personality traits may include seriousness, warmth, or imagination. Brand personality is usually built through long-term marketing, as well as packaging and graphics.
BRAND PROMISE: Brand promise is a statement from the brand owner to customers, which identifies what consumers should expect from all interactions with the brand. Interactions may include employees, representatives, actual service or product quality or performance, communication etc. The brand promise is often strongly associated with the brand owner's name and/or logo.
BRAND EQUITY: Brand equity or brand value measures the total value of the brand to the brand owner, and reflects the extent of brand franchise. A brand can be an intangible asset, used by
5
analysts to rationalize the difference between a company's "book value" and market value. For example, the market value of a company can far exceed its tangible assets (physical assets owned by the company, such as stock or machinery), and its brand value can account for some of the difference. Up to 85 percent of a company’s market value might be intangible (for example know-how, existing client relationships), and Interbrand, a brand consultancy, states that tangible assets may account for less than five percent of a company’s market value, for example in the case of Coca-Cola or Microsoft. Brand value, especially in the case of consumer product brands, may arise out of customer loyalty. Brand value may also arise in terms of staff retention benefits (e.g. the ability of the company to attract and retain skilled and/or talented employees offering competitive salaries).
BRANDING POLICIES: There are a number of possible policies:
COMPANY NAME: Often, especially in the industrial sector, it is just the company's name which is promoted leading to one of the most powerful statements of ‘branding”.
INDIVIDUAL BRANDING: Each brand has a separate name which may even compete against other brands from the same company. For example (Thums-up, Limca, Coke etc.).
ATTITUDE BRANDING:
6
Attitude branding is the choice to represent a larger feeling, which is not necessarily connected with the product or consumption of the product at all. Marketing labeled as attitude branding include that of Nike, Starbucks, The Body Shop, Safeway, and Apple Computer. "A great brand raises the bar -- it adds a greater sense of purpose to the experience, whether it's the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you're drinking really matters." - Howard Schultz president, ceo and chairman of Starbucks.
“NO BRAND” BRANDING: Recently a number of companies have successfully pursued "No-Brand" strategies, examples include the Japanese company Muji, which means "No label, quality goods" in English. Although there is a distinct Muji brand, Muji products are not branded. This nobrand strategy means that little is spent on advertisement or classical marketing and Muji's success is attributed to the word-of-mouth, a simple shopping experience and the anti-brand movement. Other brands which are thought to follow a no-brand strategy are American Apparel, which like Muji, does not brand its products.It also include a retail chain from India called THE LOOT MART.
BRAND DEVELOPMENT: In terms of existing products, brands may be developed in a number of ways:
BRAND EXTENSION: The existing strong brand name can be used as a vehicle for new or modified products; for example, many fashion and designer companies extended brands into fragrances, shoes and accessories, home textile, home decor, luggage, (sun-) glasses, furniture, hotels, etc.
7
MULTI-BRAND BRANDING: Alternatively, in a market that is fragmented amongst a number of brands a supplier can choose deliberately to launch totally new brands in apparent competition with its own existing strong brand (and often with identical product characteristics); simply to soak up some of the share of the market which will in any case go to minor brands. The rationale is that having 3 out of 12 brands in such a market will give a greater overall share than having 1 out of 10 (even if much of the share of these new brands is taken from the existing one). In its most extreme manifestation, a supplier pioneering a new market which it believes will be particularly attractive may choose immediately to launch a second brand in competition with its first, in order to pre-empt others entering the market. For example: Procter & Gamble is a leading exponent of this philosophy, running as many as ten detergent brands in the US market. This also increases the total number of "facings" it receives on supermarket shelves.
8
Bibliography
? BOOKS:Marketing Management –Kotler and Keller Marketing Management – Ramaswamy & Nabakumari ? WEB: www.marketingteacher.com www.tutor2u.net www.netmba.com www.knowthis.com
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doc_512179922.doc
A brand—an intangible asset—is often the most valuable asset of a corporation. Brand owners manage their brands carefully to create shareholder value, and brand valuation is an important management technique that ascribes a money value to a brand, and allows marketing investment to be managed (e.g.: prioritized across a portfolio of brands) to maximize shareholder value.
VIKAS VYAS
PRODUCT:
Anything that is capable of satisfying customer needs can be termed as product.
NEW PRODUCT DEVELOPMENT (NPD): NPD is a process which is designed to develop, test and consider the viability of products which are new to the market in order to ensure the growth or survival of the organization. For example: - High definition plasma, TV, ipod, mp4 players, New car model (e.g. low cost model announced by TATA).
WHY DEVELOP NEW PRODUCT? To add to product portfolio. To replace declining products. To maintain or increase the market share. To take advantage of new technology. To bring new customers.
PRODUCT GROUP-LINE: A product group or product line is a group of brands that are closely related in terms of their functions and the benefits they provide. Example– HCL’s range of PCs or SONY’s range of televisions.
1
PRODUCT MIX: The product mix comprises the complete range of products that a company offers to the market. For example:
HLL’s PRODUCT MIX
PRODUCT MIX WIDTH
PRODUCT LINE LENGTH
P. LINE 1 Bath Soaps ?Lux ?Liril ?Pears ?Rexona ?Lifeboy etc
P.LINE 2 Fabric wash ?Surf ?Rin ?Wheel ?Sunlight ?Ala etc
P.LINE 3 Beverages ?Bru ?Brooke bond ?Lipton green ?Taaza ?Taj mahal
FACTORS INFLUENCING CHANGES IN THE PRODUCT MIX: ? Market demand ? Competitor’s actions and reactions ? Quantity of production ? Goodwill of the company 2
? Changes in the company desire
PRODUCT DIFFERENTIATION: In marketing, product differentiation is the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as one's own product offerings. For example: Talcum powder. BRAND: PRODUCTS: Ponds 1) Dream flower 2) Oil control talc 3) Special Fragrance
3
BRAND:
A brand is a collection of images and ideas representing an economic producer; more specifically, it refers to the descriptive verbal attributes and concrete symbols such as a name, logo, slogan, and design scheme that convey the essence of a company, product or service. A brand is a symbolic embodiment of all the information connected to a company, product or service. A brand serves to create associations and expectations among products made by a producer. A brand often includes an explicit logo, fonts, color schemes, symbols and sound which may be developed to represent implicit values, ideas, and even personality. The key objective is to create a relationship of trust. Brand recognition and other reactions are created by the accumulation of experiences with the specific product or service, both directly relating to its use, and through the influence of advertising, design, and media commentary. In non-commercial contexts, the marketing of entities which supply ideas or promises rather than product and services (e.g. political parties or religious organizations) may also be known as "branding".
BRAND NAME: The brand name is often used interchangeably with "brand", although it is more correctly used to specifically denote written or spoken linguistic elements of a brand. In this context a "brand name" constitutes a type of trademark, if the brand name exclusively identifies the brand owner as the commercial source of products or services. A brand owner may seek to protect proprietary rights in relation to a brand name through trademark registration. Most products have some kind of brand identity, from common table salt to designer clothes.
4
BRAND IDENTITY: How the brand owner wants the consumer to perceive the brand - and by extension the branded company, organisation, product or service. The brand owner will seek to bridge the gap between the brand image and the brand identity. Brand identity is fundamental to consumer recognition and symbolizes the brand's differentiation from competitors. Brand identity may be defined as simply the outward expression of the brand, such as name and visual appearance.
BRAND PERSONALITY: Brand personality is the attribution of human personality traits to a brand as a way to achieve differentiation. Such brand personality traits may include seriousness, warmth, or imagination. Brand personality is usually built through long-term marketing, as well as packaging and graphics.
BRAND PROMISE: Brand promise is a statement from the brand owner to customers, which identifies what consumers should expect from all interactions with the brand. Interactions may include employees, representatives, actual service or product quality or performance, communication etc. The brand promise is often strongly associated with the brand owner's name and/or logo.
BRAND EQUITY: Brand equity or brand value measures the total value of the brand to the brand owner, and reflects the extent of brand franchise. A brand can be an intangible asset, used by
5
analysts to rationalize the difference between a company's "book value" and market value. For example, the market value of a company can far exceed its tangible assets (physical assets owned by the company, such as stock or machinery), and its brand value can account for some of the difference. Up to 85 percent of a company’s market value might be intangible (for example know-how, existing client relationships), and Interbrand, a brand consultancy, states that tangible assets may account for less than five percent of a company’s market value, for example in the case of Coca-Cola or Microsoft. Brand value, especially in the case of consumer product brands, may arise out of customer loyalty. Brand value may also arise in terms of staff retention benefits (e.g. the ability of the company to attract and retain skilled and/or talented employees offering competitive salaries).
BRANDING POLICIES: There are a number of possible policies:
COMPANY NAME: Often, especially in the industrial sector, it is just the company's name which is promoted leading to one of the most powerful statements of ‘branding”.
INDIVIDUAL BRANDING: Each brand has a separate name which may even compete against other brands from the same company. For example (Thums-up, Limca, Coke etc.).
ATTITUDE BRANDING:
6
Attitude branding is the choice to represent a larger feeling, which is not necessarily connected with the product or consumption of the product at all. Marketing labeled as attitude branding include that of Nike, Starbucks, The Body Shop, Safeway, and Apple Computer. "A great brand raises the bar -- it adds a greater sense of purpose to the experience, whether it's the challenge to do your best in sports and fitness, or the affirmation that the cup of coffee you're drinking really matters." - Howard Schultz president, ceo and chairman of Starbucks.
“NO BRAND” BRANDING: Recently a number of companies have successfully pursued "No-Brand" strategies, examples include the Japanese company Muji, which means "No label, quality goods" in English. Although there is a distinct Muji brand, Muji products are not branded. This nobrand strategy means that little is spent on advertisement or classical marketing and Muji's success is attributed to the word-of-mouth, a simple shopping experience and the anti-brand movement. Other brands which are thought to follow a no-brand strategy are American Apparel, which like Muji, does not brand its products.It also include a retail chain from India called THE LOOT MART.
BRAND DEVELOPMENT: In terms of existing products, brands may be developed in a number of ways:
BRAND EXTENSION: The existing strong brand name can be used as a vehicle for new or modified products; for example, many fashion and designer companies extended brands into fragrances, shoes and accessories, home textile, home decor, luggage, (sun-) glasses, furniture, hotels, etc.
7
MULTI-BRAND BRANDING: Alternatively, in a market that is fragmented amongst a number of brands a supplier can choose deliberately to launch totally new brands in apparent competition with its own existing strong brand (and often with identical product characteristics); simply to soak up some of the share of the market which will in any case go to minor brands. The rationale is that having 3 out of 12 brands in such a market will give a greater overall share than having 1 out of 10 (even if much of the share of these new brands is taken from the existing one). In its most extreme manifestation, a supplier pioneering a new market which it believes will be particularly attractive may choose immediately to launch a second brand in competition with its first, in order to pre-empt others entering the market. For example: Procter & Gamble is a leading exponent of this philosophy, running as many as ten detergent brands in the US market. This also increases the total number of "facings" it receives on supermarket shelves.
8
Bibliography
? BOOKS:Marketing Management –Kotler and Keller Marketing Management – Ramaswamy & Nabakumari ? WEB: www.marketingteacher.com www.tutor2u.net www.netmba.com www.knowthis.com
9
doc_512179922.doc