Concepts and Strategies of Brand Management

Concepts and Strategies of Brand Management ABSTRACT Branded products can be seen everywhere around us at all time, and is a way of communication for the buyer of the product. Brand management will play a more significant role in future marketing competition, so research on the brand management is likely to become more meaningful and interesting. Brand management can really create value like increasing more adaptability, uniqueness, recognition etc. All in all, brand management is significant and can add value to firms. The project discusses all about deciding and evaluating brand name. the logo and colour of the brand play an important role in attracting the consumers. Moreover after deciding the brand name, it is mandatory to register the name at trademark registration office. All this process is followed by launching or re-launching the new product or the recalled product respectively. Moreover companies have realised that the role of the company does not got over by mere launching the brand but they have to do continuous marketing to sustain in the competitive market. Over period of time, the value of product decline due to many factors and companies have to work on the revitalizing the brand image and thus leads to success of the product. The brand name is thus one of the most powerful sources of identity CHAPTER – 1 INTRODUCTION TO BRAND A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well. is a well said verse by Jeffrey Preston Bezos, the President, Chief Executive Officer and Chairman of the board of Amazon.com BRAND A brand is a name or trademark connected with a product or producer. Brands have become increasingly important components of culture and the economy, now being dscribed as cultural accessories and personal philosophies. According to the American Marketing Association (AMA), brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. Technically speaking, whenever a marketer creates a new name, logo, or symbol for a new product or service, he or she has created a brand. Now the question still is not clear about what all brand is about so we can say that brand is a promise, brand is and associated image and everyone and everything is brand. A BRAND IS A PROMISE First and foremost, a brand is a promise. It says you know the name, you can trust the promise. As all promises, it is trusted only as far as those promises are met. Trust is a critical first step and brands aim to accelerate that step by leveraging the implied promise of the brand. A BRAND IS AN ASSOCIATED IMAGE Most brands have a logo which acts as a short-cut to remind us of the brand promise. The logo uses color, shape, letters and images to create a distinctive image that is designed both to catch our eye and to guide our thoughts in the right direction. The brand may also be associated with tunes, celebrities, catchphrases and so on. All parts of the brand image works as a psychological trigger or stimulus that causes an association to all other thoughts we have about the brand. EVERYTHING AND EVERYONE IS A BRAND If you get down to the detail, everything is a brand, because we build our understanding of the world by creating associations about everything. A tree has an implied promise of beauty and shade. Even words are brands. When I say speed, you will conjure up images of fast cars, etc. People are brands, too. When people see you, or even hear your name, they will recall the image they have of you, (which is something you can actively manage or let happen). In a company where people are visible to customers, such as a service business, the people are very much a part the brand. The brand name is thus one of the most powerful sources of identity. When a brand questions its identity, the best answer is therefore to thoroughly examine its name and so try to understand the reasoning behind its creation. In doing so, we can discover the brands intentions and programme. Many brands make every effort to acquit qualities which their brand name fails to reflect or simply excludes altogether. A name-like an identity-has to be managed. Certain names may have a double meaning. The purpose of communication then is to select one and drop the other. IMPORTANCE OF BRAND Branding is a very powerful component in buisness. The brand must have a logo to make branding easier and more possible. The consumers decide if they will buy a product or use a service based on how they view the brand. The brand itself tells us or let us imagine how good ir bad the product is even we never tasted it before. All that brand promotion and advertising really do tell us how great a brand can be (like Nike). Once the customer likes your brand he/she will definitely come back for the repeated services or pproducts. The qualities of the product or services are ensured through the mind of customers from the image of the brand. Therefore, Brand is not only convinient for buisness for repeated customer purchase but also easier for customers to filter out the countless generic items. Brand gives consumer the reason to buy it and wastes less time for customer to choose a particular product or service. TYPES OF BRAND There are two main types of brand – manufacturer brands and own-label brands. MANUFACTURER BRANDS Manufacturer brands are created by producers and bear their chosen brand name. The producer is responsible for marketing the brand. The brand is owned by the producer. By building their brand names, manufacturers can gain widespread distribution (for example by retailers who want to sell the brand) and build customer loyalty (think about the manufacturer brands that you feel loyal to). OWN LABEL BRANDS Own-label brands are created and owned by businesses that operate in the distribution channel – often referred to as distributors. Often these distributors are retailers, but not exclusively. Sometimes the retailers entire product range will be own-label. However, more often, the distributor will mix own-label and manufacturers brands. Own-label branding – if well carried out – can often offer the consumer excellent value for money and provide the distributor with additional bargaining power when it comes to negotiating prices and terms with manufacturer brands BRAND EQUITY Brand equity refers to the value of a brand. Brand equity is based on the extent to which the brand has high brand loyalty, name awareness, perceived quality and strong product associations. Brand equity also includes other intangible assets such as patents, trademarks and channel relationships. The list below shows the worlds top 10 brands in 2002 (as measured by value): {Rank Brand Value ($ billions)} Coca-Cola..($69.6) Microsoft.($64.1) IBM($51.2) GE..($41.3) Intel.($30.9) Nokia.($30.0) Disney($29.3) McDonalds..($26.4) Marlboro..($24.2) Mercedes.($21.0) Source: Interbrand; JP Morgan Chase, 2002 CHAPTER 2 THE BRAND : SOURCE OF VALUE FOR THE CONSUMER The brand is a focal point for all the positive and negative impression created by buyer over time as he comes in contact with the brands product, distribution channel, personnel and communication. A brand continues to be, at least in the short term, a good example for quality even after the patent has expired. The life of patent is extented, thanks to brans, thus explaining the importance of branding in the pharmaceutical or the chemical industry. The brand performs an economic function in consumers mind and thus has a lasting and memorable effect on the companys activities. Legally a brand is simply a symbol which distinguishes a companys product and certifies its origin and thus obtains its value through registration and conformity. The value of brand comes from its ability to gain an exclusive, positive and prominent meaning in the minds of a large number of consumers. The tangible and intangible benefits which are derived from the consumption of a product of a brand are encapsulated in the strong brand. When a brand is created at first it is worth nothing. Over the time the logo acquires significance by means of advertising. Advertising are forgotten quickly whereas a brand stays in memory along with the implications which are attached to it by public. The brand is thus stocked in the mind of potential consumers. Hence, brand can be considered as an asset of the company. ADVANTAGES OF STRONG BRAND Greater perception of product or service performance. Greater marketing communication effectiveness Greater customer retention and loyalty More appreciative consumer response on price increase or decrease Has very high awareness Receives a lot of free publicity/buzz Is admired and has high purchase intent Enables the owner to charge a price premium Results in increased market share, especially for the target customers Provides increased bargaining power with business partners Provides a platform for growth beyond the current products and product categories Helps attract and retain talented employees Helps the management team align employees in support of the brands promise Often provides clarity for budgeting and capital investment decision Increases an organizations sales, profit margins, stock price and market valuation Larger margin Less vulnerability to competitive marketing action and marketing crisis Greater trade cooperation and support Possible licensing and franchising opportunities Greater brand extension opportunities ROLE OF BRAND IN PRODUCT CHARACTERIZATION The product can be characterized into three types : The qualities which are noticed by contact, before buying. Eg. Decision to buy a pair of socks. The choice is made according to the visible characteristics i.e the pattern, the style, the material, the feel, the elasticity and the price. The qualities which are noticed uniquely by experience, thus after buying. Eg. Automobile market. The performance, consumption and style can be assessed before buying the car but road-holding, the pleasure of driving, reliability and quality cannot be entirely appreciated through test drive. Credence qualities which cannot be verified even after consumption and which you have to take on trust. Eg. In the market for upmarket car, the feeling that we have made it, that certain feeling of fulfillment and personal success through buying and owing a BMW are typically the results of pure faith. Hence the role of brand is made clearer by this classification of sought-after qualities. The brand is a sign whose function is to disclose the hidden qualities of the product which are inaccessible to contact (sight, touch, hearing, smell) and possibly those which are accessible through experience but where the consumer does not want to take the risk of trying the product. As we can see, a brand provides not only a source of information but performs certain other functions which justify its attractiveness and its monetary return when it is valued by buyers. FUNCTIONS OF BRAND FOR CONSUMER The eight function of brand are presented in the table given below. The first two are mechanical and concern the essence of the brand i.e to function as a recognized symbol in order to facilitate choice and to gain time. The following three functions reduce the perceived risk. The last three have a more pleasurable side to them ethics show that the buyers are expecting, more and more, responsible behavior from their brands. FUNCTION CONSUMER BENEFIT Identification To be clearly seen, to make sense of the offer, to quickly identify the sought-after products. Practicality To allow saving of time and energy through identical repurchasing and loyalty. Guarantee To be sure of finding the same quality no matter where or when you buy the product or service. Optimization To be sure of buying the best product in its category, the best performer for the particular purpose. Characterization To have confirmation of your self-image or the image that you present to others. Continuity Satisfaction brought about through familiarity and intimacy with the brand that you have been consuming for years. Hedonistic Satisfaction linked to the attractiveness of the brand, to its logo, to its communication. Ethical Satisfaction linked to the responsible behavior of the brand in its relationship with society. Table : The function of the brand for the consumer. Hence we can say that brand plays an important role in the company. The brand of a company is created by the company and its customers together. The company has to make clear through its brand the promise it makes to its customers, based on the strategies and vision for the future of its business and products. It is vital that the company fully comprehends exactly what the customers expect from the brand, and that it continually lives up to this expectations. The aim of brand management is to create a brand that will build this long-term relationship an unshakeable bond between the company and its customers. Brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.1 These concepts and techniques are to improve the long-term profitability of the brand strategies. CHAPTER – 3 BRAND MANAGEMENT Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the products perceived value to the customer and thereby increase brand franchise and brand equity. Brand management is a dynamic and a continuous process that needs consistent investment of time and money. The boardroom must ensure that brand management is allocated a specific budget as it is much more than mere marketing communications. Due to the intangible nature of branding, the results may not accrue in a short period of time a it takes time and reinforcement to build customer loyalty. Brand management is all about the total approach says about defining the brand and control its management by the leaders of the company. Once the approach is finalised than create the promise by describing all about the product followed by making the promise by doing marketing of the product and inject the information about the product into the mind of consumer. Lastly it is important to keep the promise, what you have made during the marketing of the product. TOTAL APPROACH Brand management starts with understanding what brand really means. This starts with the leaders of the company who define the brand and control its management. It also reaches all the way down the company and especially to the people who interface with customers or who create the products which customers use. Brand management performed to its full extent means starting and ending the management of the whole company through the brand. It is simply far too important to leave to the marketing department. CREATING THE PROMISE Creating the promise means defining the brand. A good brand promise is memorable and desirable. It cannot be effective if nobody remembers it, and is no good either if nobody wants it. A good brand promise evokes feelings, because feelings drive actions. The promise must be unique and identified with you alone. The right promise comes through a deep understanding of the marketplace and the customers who are going to use the product. It also comes from a deep understanding of the capabilities and motivations of the people in the company. MAKING THE PROMISE Once the promise is created, the next step is to somehow inject it into the minds of the customers, the staff and everyone who receives anything from you or has any impact on what you deliver. This is where marketing people come into their own. Although it is still not their sole preserve, a large part of marketing, which includes advertising and PR, is about positioning the company and its products in the minds of customers and against your competitors. KEEPING THE PROMISE Creating and making the right promise is one thing, but then you have to keep it. If you do not, you brand will still exist, but now the promise will be of slipshod products and inconsistent delivery. Keeping promises means managing capability. It means consistent processes that are capable of delivering what is required. It means technology and systems which are reliable and usable. It means motivated people who are willing and able to deliver the goods. Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with future purchases of the same product. This may increase sales by making a comparison with competing products favourable. It may also enable the manufacturer to charge more for the product. The value of the brand is determined by the amount of profit it generates for the manufacturer. Brand management includes the trademark registration of the brand, brand selection and evaluation, launching a brand sustaining a brand, brand extension. The trademark registration in India follows the trademark registration procedures and specific laws. CHAPTER – 4 BRAND SELECTION AND EVALUATION In the next five years, we will see a rapidly changing landscape across the globe, where the opportunities for businesses to benefit from corporate and product branding efforts will be larger than ever before. The growing emphasis on branding will move up the boardroom agenda and it is strongly believed that branding will become one of the most prominent drivers of value across the globe in the next two decades. Businesses with a sustainable business model and with a visionary and passionate CEO with branding talent will benefit from the rising opportunities for competing in the modern marketplace and potentially taking on the global scene. It needs to be no less than the CEO who embodies the branding efforts and serves as the companys and thereby the brands primary advocate and nurturer. The approach is particularly well suited to companies whose top executives have a passion and talent for brand strategy, but in tomorrows tough environment all top-executives must be able to represent and lead the brand. The top executives of world class companies are directly involved in leading the branding vision, strategy and implementation, and spend a significant amount of their work hours to drive their brands forward and to achieve even better results. Tomorrows CEO must be a brand champion who leads corporate and product branding strategies, all strategic brand-portfolio decisions and constantly monitors the implementation of the brand locally, regionally and globally. A strong CEO has credibility and respect not only because of business talent and organizational power but also because of the depth of experience, knowledge, and insight. A suggestion from a visionary CEO with branding talent and managerial experience in branding and marketing is the key driver of the branding efforts and results in any successful organization internally and externally. The selection and evaluation of a product or service name is one of the brand name components. We know that : It ensures legal protection of certain product or service characteristics, which prevents competition from copying them It allows producers and salesmen to obtain a loyal and profitable consumer group It allows easier adjustment to segmented markets as the companies are able to function on the principle of one brand name one segment It allows the company image to be established It allows a connection with the desired product or service position It makes the product attractive for the consumer It creates various advantages and exclusiveness for the product or service METHODS USED TO CHOOSE A PRODUCT NAME Just as parents carefully choose names for their children, companies have the same difficult and extremely responsible task for naming products. They conduct qualitative research by which we can evaluate the relation to the product, its use, the product image and its comparison to competition. They organize brainstorming meetings from which we get an enormous amount of suggestions for the new names. They offer a chain associates with associations which relates to the product or individual names.they form a base for name suggestions. They apply eureka method helping with various literature, computer scattering of letters and creating new names. They test the name suggestion in target groups. PROCESS OF SELECTING AND EVALUATING BRAND NAMES The process of selecting and evaluating brand names runs according to the following steps : Identification of goals and criteria for brand name. Creating bank names Selection of suggestion Evaluating the consumer Evaluating legal protection Final name decision IDENTIFICATION OF GOALS AND CRITERIA FOR BRAND NAME The basis for a targeted search of a suitable name is determining the starting points, which means criteria that are expressed by a suitable name. Apart from general ones such as easy to remember, popularity, easy pronunciation etc. it is essential to determine specific ones that derive from the desired brand name position which will carry such a name. CREATING BANK NAMES In creating bank names it is important to rely on many sources. In this way we are able to rely on many sources. In this way we are able to avoid fixations on only one idea which narrows the creative process. The purpose of this phase is to obtain various suggestions according to the pre determined starting points. SELECTION OF SUGGESTION The next level in finding a suitable name is the selection of suggestion which have been made. A qualified team of experts that consists of many different people does the selection. The selection is finished when 8-12 suggestions that the most correspond to the expert teams opinion have been chosen. EVALUATING THE CONSUMER When a qualified team of experts make its suggestion, the most suitable bank name in their opinion, it is important to evaluate them in target groups. This must be done, because the name of the brand will be given to a product or service which will fulfil the needs of certain groups of people. The chosen name must be likeable and suitable for this group of people. EVALUATING LEGAL PROTECTION Before the final decision of the most suitable suggestion it is essential to check whether the client can register the name of the brand. In most cases the client or the holder of the brands name can do this before the testing of consumer suggestions. FINAL NAME DECISION The final decision on the chosen name depends on the client, who must consider not only the outcome of the evaluation by target consumer groups but also the position he wishes the product to have. After selecting the brand name the important things on which we should focus is its character, its visual symbol and logotypes, its colour, geographical and historical roots. BRAND CHARACTER One of the most important assets of an enterprise is the brand. The character of the brand is a critical success factor for the enterprise (and for the value of the brand). Character can be seen in terms of the attention, affection and trust awarded to the brand by the market. For a brand to have character, it needs to have positive public awareness. It also needs to have clarity, and a consistent brand proposition. This means that customers know what to expect from the brand in terms of product quality, customer service and so on. It also means that people supporting the brand (whether your own staff or third parties) know how to deliver the brand proposition. VISUAL SYMBOLS AND LOGOTYPES Everybody knows Nikes dash, Adidas three stripes, Nestlà ©s nest, Amuls girl. These symbols help us to understand the brands culture and personality. They are actually chosen as such, the corporate specifications handed over to graphic identity and design agencies mainly pertain to the brands personality traits and values. Logo should be: simple distinctive intuitive COLOUR PSYCHOLOGY AND BRAND Colour is one of the most important components in creating brand identity. The purpose of a brand identity system is to encode a brand in peoples memory and retrieve it from their memory. In a visual system, the two most powerful components are the consistent recognizable shapes and colours. It is best if these shapes and colours are distinctive. Colour can have a significant affect on peoples perception of a product or brand. For instance, burgundy and forest green are perceived to be upscale while an orange label or package indicates an inexpensive item. Third, colours can actually have an affect on a persons state of mind and cognitive ability as demonstrated by numerous research studies. For instance, pink has been shown to increase a persons appetite and calm prison inmates. Be aware that colors can have different symbolic meanings in different countries and cultures. BRAND NAME The importance of an image has become an emotional part of everyone. A brand name represents the image, character and personality of a brand. A brand name should be clear, lucid, easy to remember, distinct from the competition and should not be generic to the category. It should become customers Top of the mind brand (TOMB). Most successful brand names would satisfy these criterions to quite an extent. Brand names that are linked to associations of their origins or product will create first impressions to the user. BRAND IMAGE The vast flow of names today makes it harder to differentiate them unless they come out with their own uniqueness. This way, they could come to their special position in everyday life. The image following a particular name is also determined by the role of communication it undergoes; of which the followings are included: its manner, personality, behavior, ethics, values, etc. The importance of brands depends on the true ambitions of the company. It is important to take into account several factors and market circumstances before finalizing the brand name and its image. Company should take into account several factors and market circumstances like company goals, consumer wishes and expectations, trade groups and several other groups. A company builds its brand image through trade communication with its consumers. That is how a company informs the consumer of what the brand represents, what its values are, what the company is offering or guaranteeing the consumer, what its advantages are, its qualities etc. The consumers interpret all obtained information and form a subjective perception of the brand or its image. CHAPTER – 5 TRADEMARK REGISTRATION LEGISLATION (INDIA TRADEMARK LAW) The Indian law of trademarks is enshrined the new Trade Marks Act, 1999 came into force with effect from September 15, 2003. The old Trade and Merchandise Marks Act, 1958 was repealed at the same time. The new Trademarks Act of 1999 is in line with the World Trade Organisation recommendations and is in conformity with the TRIPS Agreement to which India is a signatory. MAIN FEATURES OF NEW LEGISLATION IN INDIA Under the new Trademarks Act of 1999 Registration of Service Marks allowed in addition to Trademarks for goods. No separate application necessary for each category/class of goods or services; a single application would do, however filing fee will be charged separately for each class of goods/services. The term of registration of trademark is ten years, subject to renewal thereafter The system of maintaining registration of trademark in Part A and Part B with different legal rights, dispensed away. Registration of trademarks which are imitations of well known trademarks not permitted. Registration of Collective Marks owned by associations allowed. Offences relating to trademark made cognizable. Filing Fees enhanced by more than 8 times. Extension of application of convention countries. WHAT IS A TRADEMARK ? A Mark` may consist of a word or invented word, signature, device, letter, numeral, brand, heading, label, name written in a particular style, the shape of goods other than those for which a mark is proposed to be used, or any combination thereof or a combination of colors and so forth. Subject to certain conditions, a trademark may also be symbolized by the name of a person, living or dead. For the purpose of registration, a mark chosen should be capable of distinguishing goods or services of one person from those of the others. Further it should not be deceptively similar to an existing mark of another person and not the one expressly prohibited under the Act. The marks devoid of any distinctive character, or which are only indicative of the kind, quality, quantity, purpose, value or geographical origin of the goods, or which are marks already in vogue in the trade due to their customary use may not be registered. But these disqualifications do not apply to marks, which have already acquired distinction due to their popularity and consistent use. Internationally acclaimed brand names are freely available for use in Indi Concepts and Strategies of Brand Management Concepts and Strategies of Brand Management ABSTRACT Branded products can be seen everywhere around us at all time, and is a way of communication for the buyer of the product. Brand management will play a more significant role in future marketing competition, so research on the brand management is likely to become more meaningful and interesting. Brand management can really create value like increasing more adaptability, uniqueness, recognition etc. All in all, brand management is significant and can add value to firms. The project discusses all about deciding and evaluating brand name. the logo and colour of the brand play an important role in attracting the consumers. Moreover after deciding the brand name, it is mandatory to register the name at trademark registration office. All this process is followed by launching or re-launching the new product or the recalled product respectively. Moreover companies have realised that the role of the company does not got over by mere launching the brand but they have to do continuous marketing to sustain in the competitive market. Over period of time, the value of product decline due to many factors and companies have to work on the revitalizing the brand image and thus leads to success of the product. The brand name is thus one of the most powerful sources of identity CHAPTER – 1 INTRODUCTION TO BRAND A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well. is a well said verse by Jeffrey Preston Bezos, the President, Chief Executive Officer and Chairman of the board of Amazon.com BRAND A brand is a name or trademark connected with a product or producer. Brands have become increasingly important components of culture and the economy, now being dscribed as cultural accessories and personal philosophies. According to the American Marketing Association (AMA), brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. Technically speaking, whenever a marketer creates a new name, logo, or symbol for a new product or service, he or she has created a brand. Now the question still is not clear about what all brand is about so we can say that brand is a promise, brand is and associated image and everyone and everything is brand. A BRAND IS A PROMISE First and foremost, a brand is a promise. It says you know the name, you can trust the promise. As all promises, it is trusted only as far as those promises are met. Trust is a critical first step and brands aim to accelerate that step by leveraging the implied promise of the brand. A BRAND IS AN ASSOCIATED IMAGE Most brands have a logo which acts as a short-cut to remind us of the brand promise. The logo uses color, shape, letters and images to create a distinctive image that is designed both to catch our eye and to guide our thoughts in the right direction. The brand may also be associated with tunes, celebrities, catchphrases and so on. All parts of the brand image works as a psychological trigger or stimulus that causes an association to all other thoughts we have about the brand. EVERYTHING AND EVERYONE IS A BRAND If you get down to the detail, everything is a brand, because we build our understanding of the world by creating associations about everything. A tree has an implied promise of beauty and shade. Even words are brands. When I say speed, you will conjure up images of fast cars, etc. People are brands, too. When people see you, or even hear your name, they will recall the image they have of you, (which is something you can actively manage or let happen). In a company where people are visible to customers, such as a service business, the people are very much a part the brand. The brand name is thus one of the most powerful sources of identity. When a brand questions its identity, the best answer is therefore to thoroughly examine its name and so try to understand the reasoning behind its creation. In doing so, we can discover the brands intentions and programme. Many brands make every effort to acquit qualities which their brand name fails to reflect or simply excludes altogether. A name-like an identity-has to be managed. Certain names may have a double meaning. The purpose of communication then is to select one and drop the other. IMPORTANCE OF BRAND Branding is a very powerful component in buisness. The brand must have a logo to make branding easier and more possible. The consumers decide if they will buy a product or use a service based on how they view the brand. The brand itself tells us or let us imagine how good ir bad the product is even we never tasted it before. All that brand promotion and advertising really do tell us how great a brand can be (like Nike). Once the customer likes your brand he/she will definitely come back for the repeated services or pproducts. The qualities of the product or services are ensured through the mind of customers from the image of the brand. Therefore, Brand is not only convinient for buisness for repeated customer purchase but also easier for customers to filter out the countless generic items. Brand gives consumer the reason to buy it and wastes less time for customer to choose a particular product or service. TYPES OF BRAND There are two main types of brand – manufacturer brands and own-label brands. MANUFACTURER BRANDS Manufacturer brands are created by producers and bear their chosen brand name. The producer is responsible for marketing the brand. The brand is owned by the producer. By building their brand names, manufacturers can gain widespread distribution (for example by retailers who want to sell the brand) and build customer loyalty (think about the manufacturer brands that you feel loyal to). OWN LABEL BRANDS Own-label brands are created and owned by businesses that operate in the distribution channel – often referred to as distributors. Often these distributors are retailers, but not exclusively. Sometimes the retailers entire product range will be own-label. However, more often, the distributor will mix own-label and manufacturers brands. Own-label branding – if well carried out – can often offer the consumer excellent value for money and provide the distributor with additional bargaining power when it comes to negotiating prices and terms with manufacturer brands BRAND EQUITY Brand equity refers to the value of a brand. Brand equity is based on the extent to which the brand has high brand loyalty, name awareness, perceived quality and strong product associations. Brand equity also includes other intangible assets such as patents, trademarks and channel relationships. The list below shows the worlds top 10 brands in 2002 (as measured by value): {Rank Brand Value ($ billions)} Coca-Cola..($69.6) Microsoft.($64.1) IBM($51.2) GE..($41.3) Intel.($30.9) Nokia.($30.0) Disney($29.3) McDonalds..($26.4) Marlboro..($24.2) Mercedes.($21.0) Source: Interbrand; JP Morgan Chase, 2002 CHAPTER 2 THE BRAND : SOURCE OF VALUE FOR THE CONSUMER The brand is a focal point for all the positive and negative impression created by buyer over time as he comes in contact with the brands product, distribution channel, personnel and communication. A brand continues to be, at least in the short term, a good example for quality even after the patent has expired. The life of patent is extented, thanks to brans, thus explaining the importance of branding in the pharmaceutical or the chemical industry. The brand performs an economic function in consumers mind and thus has a lasting and memorable effect on the companys activities. Legally a brand is simply a symbol which distinguishes a companys product and certifies its origin and thus obtains its value through registration and conformity. The value of brand comes from its ability to gain an exclusive, positive and prominent meaning in the minds of a large number of consumers. The tangible and intangible benefits which are derived from the consumption of a product of a brand are encapsulated in the strong brand. When a brand is created at first it is worth nothing. Over the time the logo acquires significance by means of advertising. Advertising are forgotten quickly whereas a brand stays in memory along with the implications which are attached to it by public. The brand is thus stocked in the mind of potential consumers. Hence, brand can be considered as an asset of the company. ADVANTAGES OF STRONG BRAND Greater perception of product or service performance. Greater marketing communication effectiveness Greater customer retention and loyalty More appreciative consumer response on price increase or decrease Has very high awareness Receives a lot of free publicity/buzz Is admired and has high purchase intent Enables the owner to charge a price premium Results in increased market share, especially for the target customers Provides increased bargaining power with business partners Provides a platform for growth beyond the current products and product categories Helps attract and retain talented employees Helps the management team align employees in support of the brands promise Often provides clarity for budgeting and capital investment decision Increases an organizations sales, profit margins, stock price and market valuation Larger margin Less vulnerability to competitive marketing action and marketing crisis Greater trade cooperation and support Possible licensing and franchising opportunities Greater brand extension opportunities ROLE OF BRAND IN PRODUCT CHARACTERIZATION The product can be characterized into three types : The qualities which are noticed by contact, before buying. Eg. Decision to buy a pair of socks. The choice is made according to the visible characteristics i.e the pattern, the style, the material, the feel, the elasticity and the price. The qualities which are noticed uniquely by experience, thus after buying. Eg. Automobile market. The performance, consumption and style can be assessed before buying the car but road-holding, the pleasure of driving, reliability and quality cannot be entirely appreciated through test drive. Credence qualities which cannot be verified even after consumption and which you have to take on trust. Eg. In the market for upmarket car, the feeling that we have made it, that certain feeling of fulfillment and personal success through buying and owing a BMW are typically the results of pure faith. Hence the role of brand is made clearer by this classification of sought-after qualities. The brand is a sign whose function is to disclose the hidden qualities of the product which are inaccessible to contact (sight, touch, hearing, smell) and possibly those which are accessible through experience but where the consumer does not want to take the risk of trying the product. As we can see, a brand provides not only a source of information but performs certain other functions which justify its attractiveness and its monetary return when it is valued by buyers. FUNCTIONS OF BRAND FOR CONSUMER The eight function of brand are presented in the table given below. The first two are mechanical and concern the essence of the brand i.e to function as a recognized symbol in order to facilitate choice and to gain time. The following three functions reduce the perceived risk. The last three have a more pleasurable side to them ethics show that the buyers are expecting, more and more, responsible behavior from their brands. FUNCTION CONSUMER BENEFIT Identification To be clearly seen, to make sense of the offer, to quickly identify the sought-after products. Practicality To allow saving of time and energy through identical repurchasing and loyalty. Guarantee To be sure of finding the same quality no matter where or when you buy the product or service. Optimization To be sure of buying the best product in its category, the best performer for the particular purpose. Characterization To have confirmation of your self-image or the image that you present to others. Continuity Satisfaction brought about through familiarity and intimacy with the brand that you have been consuming for years. Hedonistic Satisfaction linked to the attractiveness of the brand, to its logo, to its communication. Ethical Satisfaction linked to the responsible behavior of the brand in its relationship with society. Table : The function of the brand for the consumer. Hence we can say that brand plays an important role in the company. The brand of a company is created by the company and its customers together. The company has to make clear through its brand the promise it makes to its customers, based on the strategies and vision for the future of its business and products. It is vital that the company fully comprehends exactly what the customers expect from the brand, and that it continually lives up to this expectations. The aim of brand management is to create a brand that will build this long-term relationship an unshakeable bond between the company and its customers. Brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity.1 These concepts and techniques are to improve the long-term profitability of the brand strategies. CHAPTER – 3 BRAND MANAGEMENT Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the products perceived value to the customer and thereby increase brand franchise and brand equity. Brand management is a dynamic and a continuous process that needs consistent investment of time and money. The boardroom must ensure that brand management is allocated a specific budget as it is much more than mere marketing communications. Due to the intangible nature of branding, the results may not accrue in a short period of time a it takes time and reinforcement to build customer loyalty. Brand management is all about the total approach says about defining the brand and control its management by the leaders of the company. Once the approach is finalised than create the promise by describing all about the product followed by making the promise by doing marketing of the product and inject the information about the product into the mind of consumer. Lastly it is important to keep the promise, what you have made during the marketing of the product. TOTAL APPROACH Brand management starts with understanding what brand really means. This starts with the leaders of the company who define the brand and control its management. It also reaches all the way down the company and especially to the people who interface with customers or who create the products which customers use. Brand management performed to its full extent means starting and ending the management of the whole company through the brand. It is simply far too important to leave to the marketing department. CREATING THE PROMISE Creating the promise means defining the brand. A good brand promise is memorable and desirable. It cannot be effective if nobody remembers it, and is no good either if nobody wants it. A good brand promise evokes feelings, because feelings drive actions. The promise must be unique and identified with you alone. The right promise comes through a deep understanding of the marketplace and the customers who are going to use the product. It also comes from a deep understanding of the capabilities and motivations of the people in the company. MAKING THE PROMISE Once the promise is created, the next step is to somehow inject it into the minds of the customers, the staff and everyone who receives anything from you or has any impact on what you deliver. This is where marketing people come into their own. Although it is still not their sole preserve, a large part of marketing, which includes advertising and PR, is about positioning the company and its products in the minds of customers and against your competitors. KEEPING THE PROMISE Creating and making the right promise is one thing, but then you have to keep it. If you do not, you brand will still exist, but now the promise will be of slipshod products and inconsistent delivery. Keeping promises means managing capability. It means consistent processes that are capable of delivering what is required. It means technology and systems which are reliable and usable. It means motivated people who are willing and able to deliver the goods. Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with future purchases of the same product. This may increase sales by making a comparison with competing products favourable. It may also enable the manufacturer to charge more for the product. The value of the brand is determined by the amount of profit it generates for the manufacturer. Brand management includes the trademark registration of the brand, brand selection and evaluation, launching a brand sustaining a brand, brand extension. The trademark registration in India follows the trademark registration procedures and specific laws. CHAPTER – 4 BRAND SELECTION AND EVALUATION In the next five years, we will see a rapidly changing landscape across the globe, where the opportunities for businesses to benefit from corporate and product branding efforts will be larger than ever before. The growing emphasis on branding will move up the boardroom agenda and it is strongly believed that branding will become one of the most prominent drivers of value across the globe in the next two decades. Businesses with a sustainable business model and with a visionary and passionate CEO with branding talent will benefit from the rising opportunities for competing in the modern marketplace and potentially taking on the global scene. It needs to be no less than the CEO who embodies the branding efforts and serves as the companys and thereby the brands primary advocate and nurturer. The approach is particularly well suited to companies whose top executives have a passion and talent for brand strategy, but in tomorrows tough environment all top-executives must be able to represent and lead the brand. The top executives of world class companies are directly involved in leading the branding vision, strategy and implementation, and spend a significant amount of their work hours to drive their brands forward and to achieve even better results. Tomorrows CEO must be a brand champion who leads corporate and product branding strategies, all strategic brand-portfolio decisions and constantly monitors the implementation of the brand locally, regionally and globally. A strong CEO has credibility and respect not only because of business talent and organizational power but also because of the depth of experience, knowledge, and insight. A suggestion from a visionary CEO with branding talent and managerial experience in branding and marketing is the key driver of the branding efforts and results in any successful organization internally and externally. The selection and evaluation of a product or service name is one of the brand name components. We know that : It ensures legal protection of certain product or service characteristics, which prevents competition from copying them It allows producers and salesmen to obtain a loyal and profitable consumer group It allows easier adjustment to segmented markets as the companies are able to function on the principle of one brand name one segment It allows the company image to be established It allows a connection with the desired product or service position It makes the product attractive for the consumer It creates various advantages and exclusiveness for the product or service METHODS USED TO CHOOSE A PRODUCT NAME Just as parents carefully choose names for their children, companies have the same difficult and extremely responsible task for naming products. They conduct qualitative research by which we can evaluate the relation to the product, its use, the product image and its comparison to competition. They organize brainstorming meetings from which we get an enormous amount of suggestions for the new names. They offer a chain associates with associations which relates to the product or individual names.they form a base for name suggestions. They apply eureka method helping with various literature, computer scattering of letters and creating new names. They test the name suggestion in target groups. PROCESS OF SELECTING AND EVALUATING BRAND NAMES The process of selecting and evaluating brand names runs according to the following steps : Identification of goals and criteria for brand name. Creating bank names Selection of suggestion Evaluating the consumer Evaluating legal protection Final name decision IDENTIFICATION OF GOALS AND CRITERIA FOR BRAND NAME The basis for a targeted search of a suitable name is determining the starting points, which means criteria that are expressed by a suitable name. Apart from general ones such as easy to remember, popularity, easy pronunciation etc. it is essential to determine specific ones that derive from the desired brand name position which will carry such a name. CREATING BANK NAMES In creating bank names it is important to rely on many sources. In this way we are able to rely on many sources. In this way we are able to avoid fixations on only one idea which narrows the creative process. The purpose of this phase is to obtain various suggestions according to the pre determined starting points. SELECTION OF SUGGESTION The next level in finding a suitable name is the selection of suggestion which have been made. A qualified team of experts that consists of many different people does the selection. The selection is finished when 8-12 suggestions that the most correspond to the expert teams opinion have been chosen. EVALUATING THE CONSUMER When a qualified team of experts make its suggestion, the most suitable bank name in their opinion, it is important to evaluate them in target groups. This must be done, because the name of the brand will be given to a product or service which will fulfil the needs of certain groups of people. The chosen name must be likeable and suitable for this group of people. EVALUATING LEGAL PROTECTION Before the final decision of the most suitable suggestion it is essential to check whether the client can register the name of the brand. In most cases the client or the holder of the brands name can do this before the testing of consumer suggestions. FINAL NAME DECISION The final decision on the chosen name depends on the client, who must consider not only the outcome of the evaluation by target consumer groups but also the position he wishes the product to have. After selecting the brand name the important things on which we should focus is its character, its visual symbol and logotypes, its colour, geographical and historical roots. BRAND CHARACTER One of the most important assets of an enterprise is the brand. The character of the brand is a critical success factor for the enterprise (and for the value of the brand). Character can be seen in terms of the attention, affection and trust awarded to the brand by the market. For a brand to have character, it needs to have positive public awareness. It also needs to have clarity, and a consistent brand proposition. This means that customers know what to expect from the brand in terms of product quality, customer service and so on. It also means that people supporting the brand (whether your own staff or third parties) know how to deliver the brand proposition. VISUAL SYMBOLS AND LOGOTYPES Everybody knows Nikes dash, Adidas three stripes, Nestlà ©s nest, Amuls girl. These symbols help us to understand the brands culture and personality. They are actually chosen as such, the corporate specifications handed over to graphic identity and design agencies mainly pertain to the brands personality traits and values. Logo should be: simple distinctive intuitive COLOUR PSYCHOLOGY AND BRAND Colour is one of the most important components in creating brand identity. The purpose of a brand identity system is to encode a brand in peoples memory and retrieve it from their memory. In a visual system, the two most powerful components are the consistent recognizable shapes and colours. It is best if these shapes and colours are distinctive. Colour can have a significant affect on peoples perception of a product or brand. For instance, burgundy and forest green are perceived to be upscale while an orange label or package indicates an inexpensive item. Third, colours can actually have an affect on a persons state of mind and cognitive ability as demonstrated by numerous research studies. For instance, pink has been shown to increase a persons appetite and calm prison inmates. Be aware that colors can have different symbolic meanings in different countries and cultures. BRAND NAME The importance of an image has become an emotional part of everyone. A brand name represents the image, character and personality of a brand. A brand name should be clear, lucid, easy to remember, distinct from the competition and should not be generic to the category. It should become customers Top of the mind brand (TOMB). Most successful brand names would satisfy these criterions to quite an extent. Brand names that are linked to associations of their origins or product will create first impressions to the user. BRAND IMAGE The vast flow of names today makes it harder to differentiate them unless they come out with their own uniqueness. This way, they could come to their special position in everyday life. The image following a particular name is also determined by the role of communication it undergoes; of which the followings are included: its manner, personality, behavior, ethics, values, etc. The importance of brands depends on the true ambitions of the company. It is important to take into account several factors and market circumstances before finalizing the brand name and its image. Company should take into account several factors and market circumstances like company goals, consumer wishes and expectations, trade groups and several other groups. A company builds its brand image through trade communication with its consumers. That is how a company informs the consumer of what the brand represents, what its values are, what the company is offering or guaranteeing the consumer, what its advantages are, its qualities etc. The consumers interpret all obtained information and form a subjective perception of the brand or its image. CHAPTER – 5 TRADEMARK REGISTRATION LEGISLATION (INDIA TRADEMARK LAW) The Indian law of trademarks is enshrined the new Trade Marks Act, 1999 came into force with effect from September 15, 2003. The old Trade and Merchandise Marks Act, 1958 was repealed at the same time. The new Trademarks Act of 1999 is in line with the World Trade Organisation recommendations and is in conformity with the TRIPS Agreement to which India is a signatory. MAIN FEATURES OF NEW LEGISLATION IN INDIA Under the new Trademarks Act of 1999 Registration of Service Marks allowed in addition to Trademarks for goods. No separate application necessary for each category/class of goods or services; a single application would do, however filing fee will be charged separately for each class of goods/services. The term of registration of trademark is ten years, subject to renewal thereafter The system of maintaining registration of trademark in Part A and Part B with different legal rights, dispensed away. Registration of trademarks which are imitations of well known trademarks not permitted. Registration of Collective Marks owned by associations allowed. Offences relating to trademark made cognizable. Filing Fees enhanced by more than 8 times. Extension of application of convention countries. WHAT IS A TRADEMARK ? A Mark` may consist of a word or invented word, signature, device, letter, numeral, brand, heading, label, name written in a particular style, the shape of goods other than those for which a mark is proposed to be used, or any combination thereof or a combination of colors and so forth. Subject to certain conditions, a trademark may also be symbolized by the name of a person, living or dead. For the purpose of registration, a mark chosen should be capable of distinguishing goods or services of one person from those of the others. Further it should not be deceptively similar to an existing mark of another person and not the one expressly prohibited under the Act. The marks devoid of any distinctive character, or which are only indicative of the kind, quality, quantity, purpose, value or geographical origin of the goods, or which are marks already in vogue in the trade due to their customary use may not be registered. But these disqualifications do not apply to marks, which have already acquired distinction due to their popularity and consistent use. Internationally acclaimed brand names are freely available for use in Indi