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Brand Building
What is Brand building?
Involves all the activities that are
necessary to nurture a brand into a
healthy cash flow stream for the
company after launch
Advertising does a lot to help build
brands
Every ad contributes to make the brand what
it is in the minds of the consumer – David Ogilvy
A company’s brand is the primary source of
its competitive advantage and is a very
valuable strategic asset – David Aaker
Brand Equity
• When a commodity becomes a brand, it is
said to have ‘equity’. It starts with a name
and can go up or down depending on the
marketing activity that is done by the
marketer. A name becomes a brand when
consumers associate it with a set of tangible
and intangible benefits that they obtain from
the product or service.
How to measure equity?
• The premium a brand can command in the
market
• The difference between the intrinsic and
perceived value of the product
Building Brand Equity
• Distinguish product from others in the
market – Value proposition
• Align what it says about the brand in
advertising with what it actually delivers –
Creating the brand
Power Brands
• Generates enormous profits
• Expands future strategic opportunities
What do power brands have that
others don’t?
• A distinctive product
• Delivering brand promise
• Personality and presence
Personality
• Emotional bond with the customer
• Generates relationships measurably stronger
than ordinary brands
Presence
• Seem to be present everywhere, enforcing
distinctiveness
• National/international scale
• Successful brand extensions
• Multiple concept and channels
Brand managers of market-savvy
companies need
• Superior insight into customer needs
• Ability to devise product/services that
powerfully meet those needs
• Agility to redefine its offering as those
needs change
• Creativity to produce exciting and
compelling advertising
Tangibles of brand equity
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Shape
Colour
Size
Models
Price
Features
Benefits
• Grades
Intangibles of brand equity
• Company name
• Brand name
• Slogan and its
underlying
associations
• Perceived quality
• Brand awareness
• Customer base
• Trademarks and
patents
• Channel relationships
• Customer loyalty
• Customer confidence
• Competitive advantage
Value Proposition
• Broad positioning
• Specific positioning
• Value positioning
Creating the brand
• Choosing brand name
• Developing rich associations and promises
• Manage customer brand contacts to meet
and exceed customer expectations
Porter’s strategic choices
• Product differentiator
• Low cost leader
• ‘Nicher’
Positioning guards
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Should not be overpositioned
Should not be underpositioned
Should not be ambiguous
Should not promise irrelevant benefits
Promise should be credible
Choosing a brand name
• What does it mean?
• What performance/ expectations/
associations does it evoke?
• What degree of preference does it create?
Brand names should denote
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Product benefits
Product quality
Be easy to pronounce/remember/recognise
Be distinctive
Not have poor meanings in other countries
or languages
Brand Associations
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‘owned’ word
Slogans
Colours
Symbols and logos
Brand Ambassadors
• These are used to create the Brand
personality, just like a human being.
Therefore in some way the values and
personality of the ambassador rubs off into
the brand. Therfore the brand and choice of
the ambassador must fit.
Brand Status
Step up advertising
Cash cow. Need to
sustain brand
building activities
Product should be
phased out
Troubled brand.
Product upgradation
required
Esteem
Familiarity
Brand Vitality
• Differentiation in consumer’s mind
• Differentiation relevant to consumer’s need
Brand Pitfalls
• Brand experience must match brand image
• Calls for managing every brand contact