Branding and Corporate Identity Management

Branding and Corporate Identity Management

1. Terms

   • Brand
     • A distinctive product offering created by the use of a name, symbol, design, packaging, or some combination of these, intended to differentiate it from its competitors
   • Product line
     • A group of brands that are closely related in terms of the functions and benefits they provide
   • Product mix
     • A total set of the products marketed by a company

2. Brand types

   • Manufacturer brands
     • Brands that are created by producers and bear their chosen brand name
     • Responsibility for marketing lies within the producer
   • Own-label brands
     • Brands created and owned by distributors or retailers
   • Fighter brands
     • Low-cost manufacturers' brands introduced to combat own-label brands

3. Benefits of strong brands

   • Company value
     • Търговска репутация
   • Influence over consumer perceptions and preferences
   • Barrier competition
   • High profits
   • Base for brand extensions
   • Quality certification
   • Trust

4. Brand equity

   • Customer-based brand equity
     • The differential effect that brand knowledge has on consumer response to the marketing of that brand
     • Such positive brand equity is likely to result in high customer loyalty, low price sensitivity, a strong base for brand extensions
     • Brand awareness
       • Increases sales and profits by placing the brand in the consumers' evoked set and when brand awareness is the only determinant in a low-involvement purchase
     • Brand image
       • Created through the use of all the elements of the marketing mix
   • Proprietary-based brand equity
     • Derived from company attributes that deliver value to the brand
     • Patents
       • Protect the brand from competitive threats over the lifetime of the patent
     • Channel relationships
       • Experience, knowledge and close relationships with distributors and suppliers
   • Measures the strength of a brand in the marketplace by adding tangible value to a company through the resulting sales and profits
   • Brand valuation
     • The process of estimating the financial value of an individual or corporate brand

5. Brand building

   • Terms
     • Core product
       • Anything that provides the central benefits required by customers
     • Augmented product
       • The core product + extra functional and/or emotional values combined in a unique way to form a brand
   • Quality
   • Positioning
     • Brand assets
       • Distinctive features - symbols, images and relationships
     • Brand reflection
       • The relationship of the brand to self-identity
   • Reposiotioning
   • Long-term perspective
   • Internal marketing
   • Being first
     • Advantages: brand establishment, build customer and distributor loyalty, possible technological leadership, cost advantages
   • Well-blended communications

6. Key branding decisions

   • Brand name strategies and choices
     • Criteria for choosing brand names
     • Strategies
       • Family brand names
         • A brand name used for all products in a range. AKA umbrella branding
         • If one of the member brands receives bad reputation, the image of the whole family can be tarnished
       • Individual brand names
         • A brand name which does not identify a brand with a particular company
         • Used when the image of the family company is incompatible with the new target market
       • Combination brand names
         • Family + individual brand names
   • Rebranding
     • The changing of a brand or a corporate name
     • Risky - consumer confusion and resentment, loss of market share
     • Reasons
       • Merger or acquisition
       • Desire to create a new image/position in the marketplace
       • The sale or acquisition of parts of a business
       • Corporate strategy changes
         • When a company diversifies out of its original product category and the old name does not fit anymore
       • Brand familiarity
         • When the product name is more familiar than the company name, the latter changes
       • International marketing considerations
         • Harmonize a brand name accross national boundaries in order to create a global brand
       • Legal problems
     • Managing the rebranding process
       • Choosing the new brand name
       • Implementing the name change
         • Consumers, employees and distributors may feel their brand loyalty has been betrayed
         • Coordination
         • Communication
         • Understanding what the consumer identifies with the brand
         • Providing assistance to distributors/retailors
           • Avoid double-stocking of both the old and new brand and ensure barcodes and product management systems are updated
         • Speed of change
       • Information search
         • Making sure the generated brand names do not infringe on existing brand names
   • Brand extension and stretching
     • Brand extension is the use of an established brand name on a new brand within the same broad market or product category
       • Coca-Cola and Diet coke
     • Brand stretching is when an established brand name is used for brands in unrelated markets or product categories (extreme brand extension)
       • Yamaha pianos and Yamaha hi-fi equipment, skis and motorcycles
     • Advantages
       • Important marketing tactic
       • Reduces risk and expensiveness of launch strategies for new products
       • The introduction of the extension can benefit the core brand because of the effects of the accompanying marketing expenditure
     • Dangers
       • Failure
       • Under-funded launch resulting in low awareness and trial
       • Cannibalization
         • When the new brand gains sales at the expense of the established brand
       • Criticism that the company is focuses more on small changes rather than real innovation
       • Bad performance of one brand tarnishing the image of the family brand
       • Difference in the values held by different target groups
       • Loss of credibility if a brand name is extended/stretched too far
   • Co-branding
     • Product-based
       • The linking of two or more existing brands from different companies or business units to form a product in which the brand names are visible to the consumers
       • Parallel co-branding
         • When two or more independent brands join forces to produce a combined brand
       • Ingredient co-branding
         • When a supplier explicitly chooses to position its brand as an ingredient of a product (e.g. Intel)
       • Advantages
         • Added value and differentiation
           • The composing brands should be different so there's a synergy
         • Positioning
           • Position for a particular target market
         • Reduction of cost of product introduction
       • Risks
         • Loss of control
         • Brand equity loss
           • Each or either of the composing brands' image can be tarnished of the co-brand performs badly
     • Communication-based
       • The linking of two or more existing brands from different companies or business units for the purposes of joint communication
         • Whirlpool endorsing Ariel and Finish in co-branding advertising campaignes
         • Or when an alliance is formed to stimulate awareness and interest, and to provide promotional opportunities
           • McDonald's having the global rights to display and promote material relating to Disney movies
           • Or when sponsor's brand name appears on the product being sponsored
       • Advantages
         • Endorsement opportunities
         • Cost benefits
         • Awareness and interest gains
         • Promotional opportunities
       • Risks
         • Loss of control
         • Brand equity loss

7. Global and pan-European branding

   • Global brandingis the achievement of brand penetration worldwide
   • The question is which parts of the brand should be standardized and which should be varied across countries so to accomodate the local preferences

8. Corporate identity management

   • Corporate identity
     • Represents the ethos, aims and values of an organization, presenting a sense of its individuality, which helps to differentiate it from its competitors
   • Concerned with the conception, development and communication of an organization's ethos, aims (mission) and values
   • Based on the company's culture and behaviour
   • Affects organizational performance
   • Dimensions of corporate identity (AC^2ID test)
     • Actual identity
     • Communicated identity
     • Conceived identity
     • Ideal identity
       • Normally absed on the organization's capabilities and prospects in the light of its macro- and microenvironment
     • Desired identity
       • Lives in the hearts and minds of corporate leaders. It is the vision for the organization
   • Managing corporate identity programmes (REDS^2 AC^2ID test process)
     • Reveal the 5 identities (audit them)
     • Examine the 10 identity interfaces
       • The identity interfaces are 10 pairs that could be made from the 5 identities. the two identities within a pair are compared so to identify the gaps between them and then deal with those gaps
     • Diagnose the situation
       • What are the problems?
       • What are their nature?
       • What are the implications?
     • Select the interfaces for attention
     • Strategic choice
       • Reality change (incl. culture change)
       • Modifications to communication strategies
       • Strategic repositioning (incl. moving into new technologies)
       • Changes in corporate vision and mission

9. Ethical issues and anti-branding

   • Ethical issues
     • Product safety
     • Planned obsolescence
       • What is the acceptable time before replacement is necessary
     • Deceptive packaging
       • Oversized package, misleading labels
   • Anti-branding
     • The accusation that branding concentrates wealth and power in the already rich and powerful countries whereas poor countries have to compete on price

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