A name, term, phrase, design, symbol, or any combination of these chosen by an individual or organization to distinguish a product from competing products.
In simpler terms, anything that differentiates Product A from Product B.
The portion of a brand that can be expressed verbally, including letters, words or numbers.
The portion of a brand that cannot be expressed verbally, such as a graphic design or symbol.
A unique symbol that represents a specific firm or organization, or a brand name written in a distinctive type style.
The business name under which an organization operates.
A brand or portion of a brand that is legally registered with the government for exclusive use by the owner of the brand.
A trademark that represents a service rather than a tangible good.
The overall strength of a brand in the marketplace and its value to the company that owns it. Composed of;
- Brand loyalty
- Brand awareness
- Perceived quality
- Brand associations
- Other proprietary brand assets
The level of commitment that customers feel toward a given brand, as represented by their continuing purchase of that brand. Primary benefit is that it provides insurance against significant market share loss when a new competitor appears on the scene.
Victory in the race for brand loyalty can be assured by;
- Swift management response both to the press and to the marketplace
- The ability to create a perception of quality
- Maximized spending on marketing
A measure of the percentage of target market that is ware of a brand name.
- Actual facts and experiences
- Company’s reputation
- Word of mouth
- Media coverage
- Other indirect sources of information
Perceptions and images that people link with particular brands.
The Value of Branding
A brand is often an organization’s most valuable asset because;
- It provides customers with a way of recognizing and specifying a particular product.
- Enables marketers to develop specific images and interrelated marketing strategies for a particular product.
- It can command a premium price in the market.
- It is often the only element of a product that competitors can’t copy.
Forms of Brands
A brand that is designated, owned, and used by the manufacturer of the product. These are often referred to as National Brands.
A brand that is designated, owned, and used by a wholesaler or retailer. Also referred to as a Store Brand. Private brands now account for 1/3rd of all supermarket sales in France and Great Britain.
A nonbranded product that is identified only by its product category.
Key Branding Issues
a) Brand Selection
Brand name is key to a product’s personality.
b) Brand Protection
By using it or by legally registering it.
c) Brand Extension Vs. Individual Branding
Assigning an existing brand name to a new product in the same product line or in a different product line.
A brand assigned to an entire line of product lines.
A separate brand assigned to an individual product item within a product line.
d) Packaging & Labeling Suggestions
- Avoid trying to look trendy: Fads fade, but good designs last for years.
- State the product’s benefit in simple terms: 2 or 3 major selling points.
- Keep it clean: Visual clutter reflects indecision. Simplicity reflects confidence.
- Be consistent: Repeat the design on every communication tool.
Brand Types & Roles
Brand is what differentiates product A from product B.
All brands are one of 3 basic types:
- Single Product Brand: Used for only one product. ABSOLUT Vodka, Coca-Cola
- Umbrella Brand: Spans offerings across number of categories. Nestle, Knorr, Wall’s
- Sub-Brand: Used under an umbrella. Walkman, Mach 3
Brands also play either of 2 roles:
- Signature Role: Used in a simple endorsement role. Nestle Cerelac, Cadbury’s Dairy Milk
- Driver Role: Drives consumer purchase & usage. Nestle Yogurt, Knorr Noodles
Family Branding Vs. Umbrella Branding
Family Branding: When there is no sub-brand used under the main (read UMBRELLA) brand, and the brand covers / shelters more than one product categories.
Umbrella Branding: When there is a sub-brand used under the main brand, and the brand covers / shelters more than one product categories. There is usually a separate sub-brand for each category being covered by the umbrella brand.
Uses of Brands
Identification Purpose: Arbitrary combination of letters (Neologism). Works well. KODAK, EXXON
Positioning Purpose: Letters which already have meaning. HOLIDAY INN, MILK PAK
Purpose Defines Approach
- Long-term position in market – Use A
- Less Money – Use B
- Image enhancement – Use B
- Market sensitivity – Research A and B options
A brand should be;
- Easy to pronounce, spell and remember.
- Product characteristics should come forth.
- Should be sensitive to market segments.
Process of Selection:
- Discussions with intended users.
- Discussions with phonetic experts.
- Brainstorm or use computers to generate combinations.
- Screen the list.
- When under 10, do legal check on availability.
- Finalize one from 2 or 3.
Current Practice in the FMCG
Major Consumer products companies throughout the world are rationalizing their brand portfolios by;
- Consolidating all their smaller brands under umbrellas of larger, similar category brands
- Capitalizing on efficiencies obtained by carrying fewer primary brands for their organizations