Brand question

1. 1. Explains the Purpose of Branding? (5 marks)
The purpose of branding is to create a powerful and lasting emotional
connection with customers and other audiences. A brand is a set of
elements or “brand assets” that in combination create a unique,
memorable, unmistakable, and valuable relationship between an
organization and its customers. The brand is carried by a set of
compelling visual, written and vocal tools to represent the business plan
and intentions of an organization. Branding is the voice and image that
represents your business plan to the outside world. What your company,
products and services stand for should all be captured in your branding
strategy, and represented consistently throughout all your brand assets
and in your daily marketing activities
The brand image that carries this emotional connection consists of the
many manageable elements of branding system, including both visual
image assets and language assets. The process of managing the brand to
the business plan is important not only in “big change situation” where
the brand redefinition is required, but also in the management of routine
marketing variables and tactics. This does not have to be a “ground-up”
situation where there are wholesale changes to the business. Rather it is
more common that specific changes to the changes to the business plan
are incremental and the work of the brand strategist and designer is to
interpret these changes and revise the branding strategy and resulting
brand assets and define their use in the full range of marketing variables.
2. Define the Brand Identity & give an example? (3 marks)
Brand Identity includes brand names, logos, positioning, brand
associations, and brand personality, brand toons etc. A good brand name
gives a good first impression and evokes positive associations with the
brand. A positioning statement tells what business the company is in,
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2. what benefits it provides and why it is better than the completion? Brand
personality adds emotion, culture and myth to brand identity by the use
of a famous spokesperson (Bill Cosby-Jello), a character (Pink Panther), an
animal (the Merrill lynch bull) etc.
C o mp an y Word
Volvo “ S afe ty ”
BMW “ Driv ing performance”
Mercedes “ Engineering”
Federal Express “ Ov ernigh t”
Apple compu te rs “ Graphics”
Lotus “ S pre adshee ts”
Kodak “ F ilm”
3. What are the major Tools used for Building Brand Identity?(7 marks )
Brand builders use a set of tools to strengthen and project the brand
image; Strong brands typically exhibit an owned word, a slogan, a color, a
symbol, and set of stories.
Owned Word
A strong brand name should trigger another word, a favorable one. Here
is the list of brands that own a word:
Slogan
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3. Many companies successfully added a slogan or tagline to their brand
name which is repeated in every ad they use. Here are some well-known
brands slogans, which people on the street may easily recall or recognize:
COMPANY SLOGAN
British Airways “The world’s favorite airline”
Ford “Quality is our number one job”
LIC “Jeevan ke saath bhi jeevan ke baad bhi”
Colors
It helps for a company or a brand to use a consistent set of color to and
in the brand recognition. Caterpillar paints all its construction
equipments yellow. Yellow is the color of Kodak film. IBM uses blue in its
publications, and IBM is called “Big Blues”.
Symbols and Logos
Companies would be wise to adapt a symbol or logo to use in their
communications. Many companies hire a well-known spokesperson,
hoping that his or her quality transfer to the brand. Nike uses Michael
Jordon who has worldwide recognition and likableness, to advertise its
shoes. Sporting goods manufacturers sign contracts with top athletes to
serve as their symbols, even naming the product after them.
Cartoons and Animations
A less expensive approach is to develop a character, animated, to etch
the brand’s image into customer’s mind. The advertising agency Leo
Burnett has successfully created a number of memorable animated
characters. Here are some well known brand cartoons which people may
recognize:
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4. Company Cartoon or Animation
ICICI Prudential Chintamani
Amul Butter Utterly Butterly Girl
McDonalds Ronald
All Out mosquito Repellent Louis
Pillsbury Doughboy
7 Up Fido Dido
Objects
Still another approach is to choose an object to represent a company or
brand. The travelers’ insurance company uses an umbrella, suggesting
that buying insurance is equivalent to having an umbrella available when
it rains. The prudential insurance company features the rock of Gibraltar,
suggesting that buying an insurance is equivalent to “owing a peace of
rock “which is of course, solid ad dependable. Companies have developed
many logos or abstracts, which are easily remembered by people. Even
the way the brand name is written makes a brand recognizable and
memorable.
4. What are metrics to Measuring Brand Effectiveness?(5 marks )
There are many metrics to measure the potential of and actual
effectiveness of brands. The simplest way is to apply the concept of what
we call the 4 D’s of Branding; differentiation, distinctiveness, defendable,
digit-able.
Distinctiveness: your brand should be distinct when compared to
your competitors and to all spoken and visual communications to
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5. which your target audiences will be exposed. The more unique and
distinct your communications, the wider the filed of effective
competitive strength it will have. There are simple means to apply
to test the distinctiveness of your brand.
Differentiation: the brand strategy and brand assets must set you’
re offering apart and clearly articulate the specific positioning
intent of your offering.
Defendable: you will be investing in creating your brand assets and
in all cases your brand must have proprietary strength to keep
others from using close approximations. This applies to your trade
names and other proprietary words as well as to your logos,
symbols and other visual assets.
Digit-able: in most businesses there is strong and growing
element of electronic communications and commerce that dictate
all brand assets be leveraged effectively in tactile and electronics
form. This goes for all brand assets.
5. Define the Brand? (3 marks)
Any individual a brand (in his mind) is a complex combination of
experiences, beliefs, perceptions and associations that have grown up
over time. For example Coca-Cola is a company brand, a product brand,
a service brand and a brand with a long history.
6. How the customer Perceiving the brand? (7 marks )
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6. An individual builds up his perceptions of a brand via a wide range of
communications channels. They are as follows:
Experience: The most powerful influence is experiential. This is when
the individual actually has a "Brand experience". The most obvious are: -
1. He visits a McDonald’s restaurant or a Shell petrol station.
2. He buys a Coca-Cola branded product or service.
3. He views a Coca-Cola bottler's facility.
4. He visits a corporate website.
5. He attends an interview at the company.
6. He contacts the company office for information.
7. He meets an employee of the company.
8. He buys a share in the company, etc.
Advertising: Over time an individual who lives in a country in which the
company/brand is active, or travels to one on business or vacation, will
be exposed to their advertising. This advertising may be in a wide range
of media:
1. TV commercials for products and services
2. Recruitment ads inviting employment applications
3. "Corporate" TV commercials promoting the company's "reputation"
4. Web based advertising
5. An ad for the company’s branded products or services in a wide
variety of print media.
6. Billboards on highways
7. Radio
8. Point of sale etc.
Media reports and stories: Individuals will be exposed to a wide variety
of reports about companies in the media (print and broadcast) where the
editorial content is only partly influence able by the company (in some
cases) or not at all (in most cases). These stories will come from a variety
of primary and secondary sources: -
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7. 1. Press releases
2. Press conferences
3. Reporting of "events"
4. Investigative journalism
5. Stories passed to the media by third parties (Non governmental
organizations etc.)
Professional/business interest: For some individuals to interface
professionally, or from a specific business need, with famous companies
(or to observe them) is part of their job. They will usually procure their
information from a variety of sources and via a variety of channels of
communication. These individuals have a special interest in the
companies and they include: -
1. Financial analysts and journalists with an interest in share
performance
2. Existing or potential suppliers of products and services
3. Existing or potential industrial/commercial customers
7. How a company Building the Brand? (7marks)
The art of marketing is largely art of brand building. When something is
not a brand, it will probably be viewed as a commodity. Then price is the
thing that counts. When price is the only thing that counts then the low
cost producer wins. But just having a brand is not enough. What does the
brand name mean? What associations, performances and expectations
does it evoke? What degree of preferences does it create?
Choosing a Brand Name
A brand name first must be chosen then its various meanings and
promises must be built up through brand identity work. In choosing a
brand name, it must be consistent with the value positioning of the brand.
In naming a product or service the company may face many possibilities:
it could choose name of the person (Honda, Calvin Klein), location
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8. (American airlines), quality (Safety stores, Healthy choice), or an artificial
name (Exxon, Kodak).
Among the desirable qualities of a brand name. Some are:
It should suggest something about the product benefits.
It should suggest product qualities such action or color
It should be easy to pronounce, recognize and remember; short
names help a lot to recognize the product to the customers.
It should be distinctive.
It should not carry poor meanings in other countries and languages
etc.
Building Positive Associations
The best known brand names carry associations. For example, here is a
list of words that people say they associate with McDonalds:
Kids
Fun
Happy Meal
Ronald Mc. Donald
Quality
Toys
In trying to build a rich set of positive associations for a brand, the
brand builder should consider five dimensions that can communicate
meaning:
Attributes: A strong brand should trigger in buyers mind certain
attributes. Thus a Mercedes automobile attributes a picture of
well-engineered car that is durable, rugged and expensive. If a car
brand does not trigger any attribute, then it would be a weak brand.
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9. Benefits: A strong brand should suggest benefits, not just features.
Thus Mercedes triggers the idea of well performing car that is
enjoyable to drive and prestigious to own.
Company Values: A strong brand should connote values that the
company holds. Thus Mercedes is proud of its engineers and
engineering innovations and is very organized and efficient in its
operations. The fact that it is a German company adds more
pictures in the mind of the buyers about the character and the
culture of the brand.
Personality: A strong brand should exhibit some personality traits.
Thus if Mercedes were a person we would think of someone who is
middle age, serious, well-organized and somewhat authoritarian. If
Mercedes were an animal we might think of lion or its implied
personality.
Users: A strong brand should suggest the type of people who buy
the brand. Thus we would expect Mercedes to draw buyers who are
older, affluent and professional.
In summary, brands when their very name connotes positive attributes,
benefits, company values, personality and users in the buyer’s mind. The
brand builder’s job is to create a brand identity that builds on those
dimensions.
8. Identify the Elements Choosing Brand? (7marks)
Brand elements are those trademarks devices that serve to identify and
differentiate the brand. Most strong brands employ multiple brand
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10. elements. Nike has distinctive “swoosh” logo, the empowering “Just Do It”
slogan and the mythological “Nike” name based on the winged goddess
of victory.
Brand element can be chosen to build as much as brand equity as
possible. The test of the brand building ability of these elements is what
consumers think or feel about the product if they only knew about the
brand element. A brand element provides positive contribution to brand
equity.
Brand Element Choice Criteria
There are six criteria in choosing brand element. The first three can be
characterized by brand building in terms of how brand equity can be
build through judicious choice of brand element. The latter three are
more defensive and are concerned with how the brand equity contained
in the brand element can be leveraged and preserved in the face of
various opportunities and constraints.
Memorable: How easily is the brand element recalled? How easily
recognized? Is this true at both purchase and consumption? Short
brand name like tide, Nike can help.
Meaningful: To what extent is brand element credible and
suggestive of the corresponding category? Does it suggest
something about a product ingredient or a type of person who
might use the brand?
Likeability: How aesthetically appealing does consumers find the
brand element? Is it inherently likeable visually, verbally, and in
other ways? Concrete brand names such as Wheel, Sunsilk etc
evoke much imagery.
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11. Transferable: Can a brand element be used to introduce new
products in the same or different categories? To what extent does
the brand element add to brand equity across geographic
boundaries and market segments?
Adaptable: How adaptable and updatable is the brand element?
Betty corker received 8 makeovers through the years-although she
is 75 yrs old, she doesn’t look a day over 35.
Protectable: How legally protectable is the brand element? How
competitively protectable? Can it be easily copied? It is important
that names that become synonymous with product categories such
as Kleenex, Xerox, Jell-O, etc retain their trademarks rights and not
become generic.
Brand elements can play a number of roles. If consumers do not examine
much information in making their product decisions, brand elements
should be easily recognized and recalled and inherently descriptive and
persuasive. Memorable or meaningful brand elements can reduce the
burden on marketing communications to build awareness and link brand
associations. The different associations that arise from likeability and
appeal of the brand elements may also play a critical role in the equity of
brand.
9. What is Brand Equity? (3marks)
There is no universally accepted definition of brand equity. The term
means different things for different companies and products. More over
Brand equity can be defined as three distinct elements:
The total value of a brand as a separable asset -- when it is sold or
included on a balance sheet.
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12. A measure of the strength of consumers' attachment to a brand.
A description of the associations and beliefs the consumer has
about the brand.
10. What are the Branding benefits buyers as well as sellers?(7 marks )
To Buyer:
1. Help buyers identify the product that they like/dislike.
2. Identify marketer
3. Helps reduce the time needed for purchase.
4. Helps buyers evaluate quality of products especially if unable to
judge products characteristics.
5. Helps reduce buyers’ perceived risk of purchase.
6. Buyer may derive a psychological reward from owning the brand,
i.e., Rolex or Mercedes.
To Seller:
1. Differentiate product offering from competitors
2. Helps segment market by creating tailored images, i.e., Contact
lenses
3. Brand identifies the companies’ products making repeat
purchases easier for customers.
4. Reduce price comparisons
5. Brand helps firm introduce a new product that carries the name
of one or more of its existing products...half as much as using a
new brand, lower co. designs, advertising and promotional costs.
Example, BPL telephones.
6. Easier cooperation with intermediaries with well known brands
7. Facilitates promotional efforts.
8. Helps foster brand loyalty helping to stabilize market share.
9. Firms may be able to charge a premium for the brand.
11. Define the Labeling? (3 marks)
It’s any written, electronic, or graphic communications on the packaging
or on a separate but associated label.
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13. 12. Objectives of the Packaging and package labeling? (5 marks)
Packaging and package labeling have several objectives
Physical protection – The objects enclosed in the package may
require protection from, among other things, mechanical shock,
vibration, electrostatic discharge, compression, temperature, etc.
Barrier protection – A barrier from oxygen, water vapor, dust, etc.,
is often required. Permeation is a critical factor in design. Some
packages contain desiccants or Oxygen absorbers to help extend
shelf life. Modified atmospheres or controlled atmospheres are also
maintained in some food packages. Keeping the contents clean,
fresh, sterile and safe for the intended shelf life is a primary
function.
Containment or agglomeration – Small objects are typically
grouped together in one package for reasons of efficiency. For
example, a single box of 1000 pencils requires less physical
handling than 1000 single pencils. Liquids, powders, and granular
materials need containment.
Information transmission – Packages and labels communicate how
to use, transport, recycle, or dispose of the package or product.
With pharmaceuticals, food, medical, and chemical products, some
types of information are required by governments. Some packages
and labels also are used for track and trace purposes.
Marketing – The packaging and labels can be used by marketers to
encourage potential buyers to purchase the product. Package
graphic design and physical design have been important and
constantly evolving phenomenon for several decades. Marketing
communications and graphic design are applied to the surface of
the package and (in many cases) the point of sale display.
Security – Packaging can play an important role in reducing the
security risks of shipment. Packages can be made with improved
tamper resistance to deter tampering and also can have
tamper-evident features to help indicate tampering. Packages can
be engineered to help reduce the risks of package pilferage: Some
package constructions are more resistant to pilferage and some
have pilfered indicating seals. Packages may include authentication
seals and use security printing to help indicate that the package
and contents are not counterfeit. Packages also can include
anti-theft devices, such as dye-packs, RFID tags, or electronic
article surveillance tags that can be activated or detected by
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14. devices at exit points and require specialized tools to deactivate.
Using packaging in this way is a means of loss prevention.
Convenience – Packages can have features that add convenience in
distribution, handling, stacking, display, sale, opening, reclosing,
use, dispensing, reuse, recycling, and ease of disposal
Portion control – Single serving or single dosage packaging has a
precise amount of contents to control usage. Bulk commodities
(such as salt) can be divided into packages are a more suitable size
for individual households. It is also aids the control of inventory:
selling sealed one-liter-bottles of milk, rather than having people
bring their own bottles to fill themselves.
13. Describe the Packaging? (3 marks)
Packaging can be described as a coordinated system of preparing goods
for transport, warehousing, logistics, sale, and end use. Packaging
contains, protects, preserves, transports, informs, and sells
14. Various types of packaging? (5 marks)
Packaging may be looked at as being of several different types. For
example a transport package or distribution package can be the
shipping container used to ship, store, and handle the product or inner
packages. Some identify a consumer package as one which is directed
toward a consumer or household. Packaging may be described in relation
to the type of product being packaged: medical device packaging, bulk
chemical packaging, over-the-counter drug packaging, retail food
packaging, military materiel packaging, pharmaceutical packaging, etc.
It is sometimes convenient to categorize packages by layer or function:
"primary", "secondary", etc.
1. Primary packaging is the material that first envelops the product
and holds it. This usually is the smallest unit of distribution or use
and is the package which is in direct contact with the contents.
2. Secondary packaging is outside the primary packaging, perhaps
used to group primary packages together.
3. Tertiary packaging is used for bulk handling, warehouse storage
and transport shipping. The most common form is a palletized unit
load that packs tightly into containers.
14. Define the marketing strategy? (3 marks)
A marketing strategy is a process or model to allow a company or
organization to focus limited resources on the best opportunities to
increase sales and thereby achieve a sustainable competitive advantage.
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15. 15. Explain the process of strategy for the new product development?
(7 marks)
1. Idea Generation is often called the "fuzzy front end" of the NPD
process
o Ideas for new products can be obtained from basic research
using a SWOT analysis (Strengths, Weaknesses, Opportunities
& Threats), Market and consumer trends, company's R&D
department, competitors, focus groups, employees,
salespeople, corporate spies, trade shows, or Ethnographic
discovery methods (searching for user patterns and habits)
may also be used to get an insight into new product lines or
product features.
o Lots of ideas are being generated about the new product. Out
of these ideas many ideas are being implemented. The ideas
use to generate in many forms and their generating places
are also various. Many reasons are responsible for generation
of an idea.
o Idea Generation or Brainstorming of new product, service, or
store concepts - idea generation techniques can begin when
you have done your OPPORTUNITY ANALYSIS to support your
ideas in the Idea Screening Phase (shown in the next
development step).
2. Idea Screening
o The object is to eliminate unsound concepts prior to
devoting resources to them.
o The screeners should ask several questions:
Will the customer in the target market benefit from the
product?
What is the size and growth forecasts of the market
segment/target market?
What is the current or expected competitive pressure
for the product idea?
What are the industry sales and market trends the
product idea is based on?
Is it technically feasible to manufacture the product?
Will the product be profitable when manufactured and
delivered to the customer at the target price?
3. Concept Development and Testing
o Develop the marketing and engineering details
Investigate intellectual property issues and search
patent data bases
Who is the target market and who is the decision
maker in the purchasing process?
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16. What product features must the product incorporate?
What benefits will the product provide?
How will consumers react to the product?
How will the product be produced most cost effectively?
Prove feasibility through virtual computer aided
rendering, and rapid prototyping
What will it cost to produce it?
o Testing the Concept by asking a sample of prospective
customers what they think of the idea. Usually via Choice
Modeling.
4. Business Analysis
o Estimate likely selling price based upon competition and
customer feedback
o Estimate sales volume based upon size of market and such
tools as the Fourt-Woodlock equation
o Estimate profitability and break-even point
5. Beta Testing and Market Testing
o Produce a physical prototype or mock-up
o Test the product (and its packaging) in typical usage
situations
o Conduct focus group customer interviews or introduce at
trade show
o Make adjustments where necessary
o Produce an initial run of the product and sell it in a test
market area to determine customer acceptance
6. Technical Implementation
o New program initiation
o Finalize Quality management system
o Resource estimation
o Requirement publication
o Publish technical communications such as data sheets
o Engineering operations planning
o Department scheduling
o Supplier collaboration
o Logistics plan
o Resource plan publication
o Program review and monitoring
o Contingencies - what-if planning
7. Commercialization (often considered post-NPD)
o Launch the product
o Produce and place advertisements and other promotions
o Fill the distribution pipeline with product
o Critical path analysis is most useful at this stage
8. New Product Pricing
o Impact of new product on the entire product portfolio
o Value Analysis (internal & external)
o Competition and alternative competitive technologies
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17. o Differing value segments (price, value, and need)
o Product Costs (fixed & variable)
o Forecast of unit volumes, revenue, and profit
16. Explin the strategies in a product life-cycle? (7 marks)
Product life-cycle management (or PLCM) is the succession of strategies
used by business management as a product goes through its life-cycle.
The condition in which a product is sold (advertising, saturation) changes
over time and must be managed as it moves through its succession of
stages.
Product life-cycle (PLC) like human beings, products also have an arc.
From birth to death, human beings pass through various stages e.g. birth,
growth, maturity, decline and death. A similar life-cycle is seen in the
case of products. The product life cycle goes through multiple phases,
involves many professional disciplines, and requires many skills, tools
and processes. Product life cycle (PLC) has to do with the life of a product
in the market with respect to business/commercial costs and sales
measures. To say that a product has a life cycle is to assert three things:
Products have a limited life,
Product sales pass through distinct stages, each posing different
challenges, opportunities, and problems to the seller,
Products require different marketing, financing, manufacturing,
purchasing, and human resource strategies in each life cycle stage.
The four main stages of a product's life cycle and the accompanying
characteristics are:
Stage Characteristics
1. costs are very high
2. slow sales volumes to start
1. Market 3. little or no competition
introduction 4. demand has to be created
stage 5. customers have to be prompted to try the
product
6. makes no money at this stage
1. costs reduced due to economies of scale
2. sales volume increases significantly
2. Growth stage
3. profitability begins to rise
4. public awareness increases
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18. 5. competition begins to increase with a few new
players in establishing market
6. increased competition leads to price decreases
1. costs are lowered as a result of production
volumes increasing and experience curve effects
2. sales volume peaks and market saturation is
reached
3. increase in competitors entering the market
3. Maturity stage 4. prices tend to drop due to the proliferation of
competing products
5. brand differentiation and feature diversification
is emphasized to maintain or increase market
share
6. Industrial profits go down
1. costs become counter-optimal
2. sales volume decline
4. Saturation and 3. prices, profitability diminish
decline stage 4. profit becomes more a challenge of
production/distribution efficiency than
increased sales
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