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Brands

Aping Other Brands? Think Again!

We always puzzle me. Let me elaborate how. Each one of us is unique, possessing distinct qualities, abilities and even quirks. Yet, throughout our lives we try to fit into the world’s definition of “normal,” to fit in, to be regarded as one them. But that’s not all. What is even more surprising is that no sooner do we begin to blend in with the crowd, than we want to break away from the mould. If this is not paradoxical, then I don’t know what is. However, if you too think that this is paradoxical, wait till you see the same irony all around you.

Let us take the example of brands. Each brand has its own strengths, its own reputation, a unique value offering and a distinct brand experience. Yet, each of the smaller brands, blindly imitate the leaders in their segment, in order to blend in with the biggies. The bigger brands on the other hand are constantly trying to reinvent themselves in a bid to break the mould and rejuvenate consumer interest. Both the leaders as well as the followers, unsatisfied by who they are, are undergoing constant change.

The result- The leaders in a bid to relentlessly revive themselves, often lose their original identity as well as their core strengths and value proposition. Consumers can no longer identify with the brand attributes or the brand values and they switch over to smaller players. These smaller brands i.e. the followers in the particular segment are trying their level best to emulate the ever-changing leaders, causing even more confusion. When the consumers witness the sorry imitation, they become disillusioned even with the smaller brands. Their wants and needs are not met and consumers are dissatisfied. Even so, brands still wonder why consumers are acting like insatiable brats.

This, when brands themselves have forgotten that being yourself and not someone else is what gets you to the top. As Mark Twain put it correctly, “It were not best that we should all think alike; it is difference of opinion that makes horse races.” If all the brands in the marketplace start looking, acting and feeling alike, consumers are disappointed. They have no choice but to have the same kind of chocolate, the same kind of cola or the same kind of cereal; irrespective of the brand. This homogeneity of brands is what causes them to be put in the time machine called imitation and be transported back to the time when no brands existed, just products.

The above phenomenon can be observed in a lot of the brands in many product categories and must be stopped. If this continues the time machine of imitation may take the brands back not just to the era when they were products, but also probably to the age when dinosaurs ruled the earth.

Brand Image

Brand Image in the New Age

(Taken from an interview with marketing guru, Ajeet Khurana as he demystifies marketing)

The term brand image refers to the feeling that one gets when one comes across a particular brand reference or a brand symbol. It is one of the vital attributes of a brand as well as a measure of the impact of branding on the target audience. It is important to note that brand image concerns itself with how only the target audience perceives the brand and not the general population.

In the case of generic products like chocolates, cola etc, there is likely to be an overlap between the target audience and the population as everyone is a prospective consumer of the product. However, for niche products, it is not necessary that the brand image be favorable amongst the entire population. As long as it is positive in the minds of the desired target audience, it is considered to be affirmative.

Another interesting correlation is that of the brand image and the brand age. Vintage brands tend to have a positive brand image since the fact that the brand still exists proves that it has provided value in the past and has survived for all the years it has. In this case then, the mere presence of brand vintage has misled the prospective consumers into believing that the brand has positive brand image. On observing closely one would realize that the brand may have survived due to a variety of reasons and not only because it has been favored in the past.

While on the concept of brand image, it must be mentioned that though it is perceived as being synonymous with brand imagery, the two are in fact completely different terms. Every brand has some inputs that go into its creation and building as well as a few outputs that result from the process. Thus, brand name, positioning and brand imagery like symbols, logos etc. are the inputs that go into making the brand. More specifically, brand imagery refers to visuals associated with brand and will also include the mascot, the brand ambassador and any other element that creates visual imagery in the minds of the consumers. In the case of the brand Virgin, it is the flamboyance of its leader Richard Branson that is part of Virgin’s imagery.

On the other hand, brand image is one of the many outcomes of the process of brand building. To put it simply brand image is what comes to the mind of the consumers after he has been exposed to the brand name and brand imagery. Thus, brand imagery influences brand image.

Having understood the concept of brand image, one must evaluate its importance in the process of marketing. While a positive brand image does create a bias for sale, acceleration or deceleration of sale can happen due to a lot of other factors. However, though brand image is not the only factor that can impact sales, it can be used effectively as a differentiator in a market-place where hoards of “me-too” products clamor for consumer attention.

Brand Equity

Brand Equity

(Taken from an interview with marketing guru, Ajeet Khurana as he demystifies marketing)

Style or substance? Each one of us has made a choice between the two at some time in our life. In fact every time you buy branded goods, more often than not you prefer style to substance. While you may cite reasons such as quality and more value to justify your choice, that still does not explain why a lot of us choose Pepsi over Coca-cola or vice-versa, when the two products are almost homogenous. In this case where the substance is the same, style is the only differentiator that the consumers use to evaluate a brand.

This then goes on to suggest that functional quality (substance) is just one of the inputs of brand equity (style). Brand equity is therefore projected as the larger concept that is made up of a lot of additional factors like brand values, brand attributes, brand recall, brand referral etc. Thus, substance i.e. functional quality does not always mean that consumers will buy the product or even perceive it positively. The product must be presented and represented in a positive and appealing manner, for it to go down well with the target audience. But then again, there have been cases where the brand presentation has been excellent but sales figures have been extremely disappointing.

This then brings us to the longstanding debate of what it takes for a brand to succeed in the marketplace- brand equity or product quality. Naturally, it is the functional value, says renowned marketing guru, Ajeet Khurana. According to him, while the market may forgive poor brand communication, it will never pardon low value. Also poor brand communication and low brand equity can be rectified even in the short run or the medium run respectively. However, poor value delivery makes the consumers feel like they have been taken for a ride. It then takes a lot of time for consumers to trust the brand again, even if the brand is now loaded with value.

Thus, even if consumers perceive high quality in a particular brand i.e. it has high brand equity, but it fails to deliver any value, word will soon be out as will be the product. Consumers today are smarter than ever and cannot be fooled for long. So, even though high brand equity i.e. style, has to definitely be used as the gloss to sell the core product i.e. substance, the brand must not be all style and no substance. Substance without style may sell, but style without substance won’t survive even a day.

What Is Brand Equity?

What Is Brand Equity?

Brand equity is a lot like love. Everyone admits that love is wonderful and necessary, yet no one agrees on just what it is. Similarly, every marketer worth his salt understands the importance of brand equity. Yet no one agrees on what it is. In fact some of the world’s biggest brands, are unable to define what brand equity is.

In the absence of a standard definition how can one safely say that the brand equity of a particular brand is high while that of another is low? The answer to this question is the same as the answer to “how can one say that one you are in love with loves you back?”-You just know. One cannot define love yet one is able to comprehend it. Similarly though there is no specific definition of brand equity, one can easily grasp whether a brand has high brand equity or not.

This is possible because just like love, brand equity too displays tell-tale signs of its presence. Thus, while answering the question what is brand equity, a few of the following tell-tale signs can come handy.

Brand Loyalty
If the consumers of a brand do not switch over to other brands in the same category, in spite of being offered incentives by the competitor brands, it displays brand loyalty on part of the consumers. This not only indicates high brand equity but also implies a steady flow of sales, all things being equal of course.

Brand Referral
Brand referral becomes a measure of brand equity when the consumers are not just loyal to the brand but are also proud of owning or using the brand. Thus, not only are they devoted to the brand but they also persuade others to do so.

Brand Recall
Brand recall refers to the recollection of the brand attributes and the brand communication, by the consumers when they have been presented with a brand reference. A high brand recall indicates that consumers are likely to remember and therefore purchase the particular brand, when they have the will and ability to buy the product. This also contributes to the brand equity.

Financial Value of the Brand
While answering the question what is brand equity, the financial value of the brand can be viewed from two perspectives. If a brand is sold at a premium over the other brands of the same quality, belonging to the same product category, the brand is said to have high brand equity. On a macro perspective, when it comes to acquisitions or sell-outs, the price commanded by the corporation not for its production or marketing facilities, but for the brand under which its products are sold, is known as brand equity of the brand.

High Perceived Quality
As the market moved to being a buyer’s market, a strange phenomena was observed- consumers would prefer one brand over the other, though the two had the same functional quality. While this confounded marketers in the past, today’s sellers have realized that consumers are not driven by quality but by perceived quality. Thus, even if the quality of a product is superior to that of the other, but the consumers think otherwise, the brand cannot be said to have better brand equity. On the other hand, if the consumers prefer a brand with low product quality vis-à-vis one with better quality, the former brand is said to have higher brand equity.

Thus though one cannot exactly know “what is brand equity,” but recognizing and gauging the brand equity of the multifarious brands using the above tell-tale signs is a sure fire way of at least knowing which brand has the “it” factor and which does not.

Logo Branding

Brand Logo- Its All in the Symbol

As toddlers who couldn’t read, we all did a very good job of recognizing our favorite brand of chocolate or cereal-thanks to the brand logo. Right from the day we are born, we see and thereby comprehend the world around us. This visual comprehension of information does not stop when one learns to read or write. In fact, adults too have been known to react more strongly to images than to the written word. Little wonder then that many new-age marketers are recognizing the importance of the brand logo. Branding of a product is in fact incomplete with the logo.

However, a logo is not just a sign or a creative representation of the brand name. It is a symbol of the attributes of the brand and a reflection of the brand personality. A brand logo is a lot like a signature of the brand-unique, distinctive and making a personal statement about the brand. The one element that remains universal in each of the brand communications is the logo. Branding can therefore use the brand logo as an effective tool for achieving its various objectives.

Let us now take a look at how a brand can benefit from its logo. Branding can profit from the logo because:
A Logo is Part of the Brand Imagery
There are a lot of elements that go into the creation of a brand, one of them being the brand logo. Branding involves the creation and popularization of the various forms of brand imagery such as the brand logo, brand mascot, brand ambassador etc.

A logo Transcends the Barriers of Language
In an era of global marketing and the standardization of brand communication across markets, the success of a logo depends upon its usability across these markets. This is not to say that logos using the alphabet of a particular language will not be successful. However, using generic symbols like the Nike “swoosh,” leads to instant comprehension and therefore increases identification across markets.

A Logo Symbolizes Trust and Quality
Brand campaigns come and go, while the brand symbols like the brand logo, often remain constant. This constancy creates an affinity for the brand among the consumers. Consumers begin to associate brand values such a trust and quality with the symbols.

Encourages Brand Recall
A consumer is reminded of the brand each time he/she comes across the brand logo. Branding, the objective of which is to create brand recall, benefits immensely from this occurrence.

Distinguishes Spurious Brands
The presence of counterfeit brands especially in the developing economies augments the need for a unique and inimitable brand logo. Branding of authentic products must be such that consumers are able to distinguish between them and the spurious ones.

Thus, a logo, though often undermined, is one of the first things that a consumer or a prospect will notice about your brand. It therefore makes sense to go that extra mile in creating a powerful one. After all, don’t we all want to have great first impressions?

Identity Branding

There Is More to Brand Identity Than Meets the Eye
The structural theory of the legendary psychoanalyst, Sigmund Freud, establishes that the human identity is not a single, unified self. To be more specific Freud said that there are three elements comprising the human identity, which he named the Id, Ego and the Superego, respectively. The Id is based on the pleasure principle and is all about satisfying the basic, innate human wants. The Ego is the rational part of human identity, which mediates between the urges of the Id and the world outside. Lastly, there is the Superego, which is the moral aspect of human identity and governs the human sense of what is right and wrong.

Too much psychobabble? Maybe. Irrelevant Psychobabble? Definitely not. If we observe closely, in the context of marketing, the identity of a brand can also be analyzed using Freud’s model. Thus the same Id, Ego and Superego exist in the brand identity too. Branding as a process, often on unconscious level projects these very aspects of the brand identity. Branding of a product involves understanding the brand identity vis-à-vis these three elements.

The Id-The Id in the context of brand identity refers to the primal needs of a brand to increase sales, market share, turnover and consequently profit. These desires are inherent in every brand and form an integral part of the brand’s identity. Branding however tries to consciously and overtly conceal the brand’s Id from the marketplace, though everyone is aware that it exists.

The Ego-As in the case of human beings, the Ego in the case of brand identity, satisfies the needs of the brand Id thus making it an important part of the brand identity. Branding ensures that the brand Ego acquires various skills, which will help it satisfy the Id. Thus, the brand Ego uses the techniques of pricing, sales promotion, advertising, public relations etc. to satisfy the profit-making desire of the brand Id. Moreover, while the Brand Ego is satisfying these desires, it becomes aware of itself, as an entity and not just a profit-making venture.

The Superego-The Superego, which represents the moral part of the human identity, is also the ethical component of the brand identity. Branding involves a lot of decision-making and often treads on the thin line between good and bad. It is at times like these that the inner, ethical voice of the brand-the Brand Superego, comes into play and guides the brand towards the path of honesty.

Thus, like human identity, brand identity too conforms to Freud’s structural theory. The similarity does not end there. As per Freud’s theory, the three components are present in different proportions in each individual. Similarly brand Id, brand Ego and brand Superego too are present in all brands, but in different proportions. Like Human, Like Brand.

Co Branding

Co-Branding- A Marriage of Equals

Co-branding like all other marketing phenomena has scores of definitions. However, the most basic definition states that co-branding is the coming together of two brands so as to capitalize on the strength and neutralize the weaknesses of each other. In this sense then, the practice of co-branding is a lot like two people entering the institution of marriage. In marriage, two people complement and supplement each other in social, religious and personal situations. Similarly, in co-branding too, two brands agree to come together to capitalize on and synchronize their positions in the marketplace.

However, they say that a successful marriage depends on two things: (1) finding the right person and (2) being the right person. If the similarity between co-branding and marriage is to be believed, then this must be true for co-branding too. Thus, co-branding too depends on (1) finding the right brand to partner with and (2) being the right brand.

Finding the right brand to partner with is extremely crucial. If the values of your brand partner are not in sync with those of your brand, not only will it result in a waste of marketing resources but also be detrimental to the brand equity of your brand. However, if you are successful in finding the perfect soul mate for your brand, then a lot of marketing potential awaits you.

In order to find the perfect brand partner you must first know the strengths and weaknesses of your brand extremely well. You must also be aware of any future opportunities and threats that your brand is likely to face. Once you have realistically assessed your brand you must then try and look out for a partner brand that can help you fill in the gaps. However, the ultimate goal for both the brands should be building a strong “us” while building an even stronger “I.” So, not only must the partner brand be useful to you but the partner must also derive value from the partnership. No co-branding relationship can exist without being mutually-beneficial to both partnering brands.

On the other hand, being the right brand to partner with, is equally if not more important for a co-branding relationship to succeed. While the idea of a co-branding relationship is for brands to make the most of each other’s brand equity, it is unfair for one brand to exploit the resources of its partner without offering any value in return. Thus the brand must do as it would be done by. This means the brand must be willing to place its strengths on the table and must be willing to share its knowledge, expertise and consumer base with its partner. This way the co-branding relationship can be mutually fulfilling. Another aspect of being the right partner in a co-branding relationship is for partnering brands to look out for each other in the marketplace and not form alliances with their partner’s competition.

Thus, being a good partner involves sharing of assets and safeguarding the interests of the other. However, it is also equally important for partners in any relationship to give each other space to grow and evolve. Similarly, in a co-branding relationship too both brands must give each other room to perform and achieve.

So, if marriages are made in heaven and celebrated on earth then co-branding alliances are made in the boardroom and rendered in the marketplace. The right amount of understanding can ensure conjugal bliss in one case and marketing bliss in the other.

Building Strong Brands

Building Strong Brands-Because Might Is Not Always Right

Do brands really need to be strong? The answer to this question is yes and is obvious to most of us. The reason though quite apparent often goes unnoticed. We see it everyday. Brands wrestle each other in the arena we call the marketplace. Moreover, as in the case of wrestling, the winner does not win simply by might. Very often, it is the player’s strategy and technique that gets him to win. Thus, in the game of wrestling, it’s the strength on mind that is put to test and not the strength of muscle.

How does all of this translate into marketing? The fact remains that in marketing too, brands must not only be strong physically but they need to be strong intellectually. Thus building strong brands is more a function of creating sound strategy than simply the function of the market share of the brand. This means that just because a brand is doing well commercially, it does not imply that it is a strong brand. There could be other factors that may be contributing to its commercial success. It may so happen that most of these factors will be external to the brand and may not have anything to do with the brand. Building strong brands requires brands-even the market leaders, to introspect and realize their inner potential. There needs to be a clear-cut distinction between the brand’s intrinsic strengths and external opportunities, both of which may be contributing to the brand’s success.

The difference between the two however, is that while brand strengths are inherent, external opportunities will be fleeting and may follow the axiom of easy come easy go. If one is looking forward to building a strong brand, one cannot therefore, count on the external opportunities for strength. The strength of a brand must come from within and must not be confused with windfall opportunities in the marketplace.

An interesting motive for building strong brands is that brand strengths are unique for each brand. Marketplace opportunities however, while contributing to the success of the brand are not unique and other players in the marketplace can also avail of them. Thus while building strong brands the motto must be for the brand to achieve self-reliance and do away with dependence on providence.

Another aspect of building strong brands is that the strengths of the brand must be cultivated and communicated to the target audience. Once the basic strengths of the brand have been identified, the key is to understand how more value can be delivered using those strengths. However, there may be some brands which may not have any exceptional strengths. In this scenario, brands must consciously cultivate those strengths that make them stand out in the marketplace. However, building of a strong brand does not stop at that. There is a need to communicate the brand strengths and value offering to the target masses.

The above process of building strong brands surely seems to be a time-consuming, tricky and complex one. Nonetheless, in the arena called the marketplace, where brands must either do or die, they must either be strong enough to wrestle competition or be prepared to lose to the others and perish for good.

Branding Agency

Can a Branding Agency Give You a Bigger Bang for Your Buck?

As today’s consumer becomes more informed yet more spoilt for choice, more responsive yet less loyal and more clued-in yet more clued out; the advertising agency is rapidly becoming passé. Taking their place as the new darling of marketers is the new force- the branding agency. The reason perhaps is that marketers today, realize the need for an integrated approach towards brand communications.

Furthermore, they have also arrived at the conclusion that brand communication is not the last word in marketing. This means that merely communicating with the target audience isn’t enough. The perceptions of the consumers must be measured pre and post the brand communication to know the difference if any. The fray does not stop there. Marketers today must be in a position to change these perceptions too. Sounds tough? Well, not if you are consulting a branding agency.

A branding agency goes beyond the purview of brand communications by trying to measure the efficacy of the communication. If a particular brand message has gone down well with the target audience, the branding agency assesses whether this will impact sales or not. The branding agency also helps marketers understand consumer behavior. However, if a specific piece of brand communication has failed, this too is analyzed by the branding agency. The learnings obtained are then incorporated in the next piece of communication.

Also, the process of measurement often causes branding agencies to stumble upon dormant marketing opportunities and perceive threats in the marketplace well in advance. This valuable information is then passed on to the clients of the branding agency.

Besides measuring consumer perceptions, a branding agency also helps marketers to change these perceptions favorably. Though this may sound far-fetched and unbelievable, it is true all the same. And the trick that the branding agency employs is to simply go that extra step in knowing the consumers.

To give you a simple metaphor, engaging the services of an advertising agency is like enrolling in a dating program where you volunteer some information about yourself and then wait for prospective dates to come around. On the other hand partnering with a branding agency is like enlisting the help of a dating service that goes one step ahead. This dating service will not only showcase information about you to the prospects but also ask for their feedback, analyze it, get back to you with constructive suggestions, work with you on your areas of improvements and present you to the same prospects as the loveliest creature to have lived on planet Earth. Thus while one service is reactive the other is proactive.

If I asked you to choose between the above dating alternatives, which one would you prefer? Your answer is obvious and so is the reason for fall of the advertising agency and rise of the branding agency.

Branding and Marketing

The Final Word on Branding and Marketing

(Taken from an interview with the marketing guru, Ajeet Khurana as he demystifies marketing)

One of the most debated topics of the business world has been determining whether the terms branding and marketing are synonyms or not. The fact however is that branding and marketing though often used synonymously are in fact distinct terms. While one can encounter various definitions of marketing, the one that best describes the phenomenon states that marketing encompasses all functions regarding the offering of products or services. Branding on the other hand can be considered as a valuable tool of marketing.

Let us consider the example of the world’s biggest cola makers-Coca-Cola and Pepsi. The makers of almost similar tasting colas have been extremely successful at using branding as a tool. They have in fact managed to brand and thereby market an extremely generic product like cola using the various marketing tools.

Branding and Marketing- the Right Combination:
Branding is not the sole and not always a tool of marketing. In fact for a new product to be introduced in the market, branding is the slowest tool. New entrants often prefer using direct marketing, direct selling, promotion and even tactical advertising to some extent to aid the process of marketing. Branding only commences at this stage and the focus is on using the other tools of marketing.

However, bigger players in the market do not necessarily adopt this approach while launching product extensions. These players begin building brands for any of their product extensions right from the start. This is probably because they understand the importance of branding and also have the dough to invest in the same.

Branding and Marketing- Incidental or Intentional?
While we look at brand creation and brand building as a deliberate exercise, one must concede that most of the biggest brands were created accidentally. The creators of the brands were selling products before they were selling brands. They did not concentrate on the deliberate creation of a logo, image, positioning etc, when they started out. But branding happened and it happened incidentally. Thus, even when you do not brand intentionally, the unique properties of a product often tend to make a brand out of it.

Branding or Marketing- Who’s the Boss?
While a lot of discussion has taken place on whether branding and marketing should be separate functions or not, by the very definitions of the terms, it is clear that marketing is the parent function, while branding is the subsidiary one. Thus, branding comes under the purview of marketing and branding strategies and objectives must ultimately fall in line with the marketing strategies and objectives.