Elements of Branding

Elements of Branding

Brand Positioning

It is a positioning strategy of a brand that can be used for differentiation. Brand positioning is the process of presenting a brand in the market to make sure that:

• A brand is unique or distinctive over competitors
• A brand is significant to all major geographic businesses and markets
• A brand is encouraging to the niche market
• A brand is helpful for organisation to achieve its financial goals
• A brand should support and boost an organisation

Brand positioning is the process of creating a brand that offers has distinctive place in the minds of customers. For instance, Tata is known for its trust, Zara is known as a premium brand. Brands are useful for mind recall. Brand positioning is the process of identifying and assessing similarity and difference points to determine the right brand identity. A positioning strategy can be defined as a process by which an organisation creates an image or identity of its brands in the minds of its target customers.

In addition, positioning strategy should aim at:

• Carrying a value benefit for ample number of customers
• Making the brand different from its competitors
• Denying the possibility of imitation of the brand by other organisation
• Generating profit for the brand

A successful brand positioning can be done by differentiating products of an organisation from its competitors.

An organisation should create differentiation on the basis of the following criteria:

• Significance: It implies that a product should give benefits to its target customers.
  
  
• Uniqueness: It implies that a product should have distinctive features. Product uniqueness can be counted as an add-on benefit in the existing product of an organisation.
  
  
• Reasonable: It should check the buying ability and budget of customer
  
  
• Profitability: It allows an organisation to continue its operations for a longer period and differentiate with change in time.

The organisation needs to differentiate its brands from existing substitutes available in the market to survive in the competitive environment. Let us now look at a few leading companies that stand apart with the help of brand positioning.

Tesla’s brand positioning is one of its strengths. When Elon Musk took over in 2008, he repositioned Tesla as “the new technology for clean energy.” With compelling storytelling, a prestigious pricing strategy and target market segmentation, they have created demand and then a market for an all-electric luxury car.

Tesla is not the only brand that provides luxury cars. It is not the only brand that provides electric cars. It is not even the only brand to offer luxury electric cars, “But it’s the only brand to offer only luxury electric cars, and thus sets the pace for this new industry.” This is how Tesla created its own market.

Apple is as close as you can picture it to the perfect example of a strong brand. With their unapologetic premium pricing, innovative technologies, and end-to-end customer experience, Apple knows they are more than just a company that sells computers. The story of Steve Jobs and his vision of a brand that can help change the world has become a myth and fits almost poetically in the position they now hold.

As Apple encourages its customers to “Think Differently,” they aligned themselves with the idea that those who think differently will change the world. By purchasing Apple products, their customers are aligning themselves with the innovative, creative, and creative traits they so respect.

Nike was born from a legacy of competitive athletics in Portland Ore- gon and built on old-school innovation that included the household waffle iron. These competitive and innovative features have become part of the Nike brand’s DNA, which has seen it reach incredible heights.

Although the brand started as a business selling running shoes, it has associated its reputation for quality and earning to expand the brand into wider athletic apparel and fashion. Since its 1987 “Just Do It” campaign, Nike has expanded beyond a running shoe business and amassed an army of loyal followers who share the same competitive “play to win” stance.

So, it would be fair to say that the success or failure of every brand is determined by the position they hold in the market. A lack of strategic thought or uniqueness is the simplest way for a brand to blend into the throng and vanish without anybody noticing.

Brand Equity

One of the most important element of brand management is brand equity as it defines a set of brand assets and liabilities associated to a brand such as its logo, name, symbol which add or subtract from the value offered by a product or service to the organisation or to its customers. Brand equity is the incremental value or premium price which a customer is ready to pay for a brand name in place of a commodity. Customers pay higher prices for a brand not for the commodity and the credit goes to the brand equity.

Brand equity is the estimation of a brand or can be abridged as the apparent incentive by shoppers over different products. The value of your brand is imperative on the ground that if your brand has positive brand equity, you can charge more for your product and services than the conventional products or different contenders. Customers will be increasingly likely to pay more for conventional products or products from your competitors if your brand has negative brand equity.

A brand becomes valuable to the customers and to the company due to brand equity. Brands contribute in a company by fostering enhanced cash flow and goodwill for management. Brand equity is the set of assets and liabilities associated with a brand, its symbol and its name. It is defined as the financial value, net worth of a brand. It is the accumulated value of the tangible and intangible assets of a brand which contribute to its corporate parent, both in selling and financial term.

Maggi is one of the best examples to demonstrate how brand equity enables an organisation to adapt up to anything in the market. Brand equity, for the most part, is reliant on brand mindfulness, quality, solid brand affiliations and different resources, for example, licenses, trademarks and channel connections. It offers a guarantee to the customers for the product quality and safety which also keeps up the relationship. Figure shows some fundamental segments or components of brand equity.

Let us discuss each component in detail.

Brand awareness

The initial step of the equity-building process is building familiarity with the brand. Brand awareness implies that the potential customers know about the brand and can connect it with the particular product/classification. Awareness triggers the remaining parts of the brand equity-building process.

For example, if you need a cold drink, you are likely to think of Pepsi or Coke. There are many other cold drinks on the market, but Pepsi and Coke have both been able to develop brand awareness in the minds of customers.

Brand association

Brand association is anything which the potential customers consider or identify or associate with the brand. Ads, online and offline, deals and post-deal connections, tagline, emotions attached with a brand offer ascent to mark affiliations. Brand associations are pictures and symbols associated with a brand or a brand benefit, not benefits themselves.

The Nike Swoosh, Nokia sound, Film Stars such as “Lux,” trademark music Ting-ting-ta-ding with Britannia, Blue colour with Pepsi, and so on. Associations do not create “reasons to buy,” but rather provide familiarity and distinction that cannot be replicated.

Perceived quality

One of the significant requirements of building solid brand equity is the satisfaction that a brand guarantee. Potential customers evaluate the brand by contrasting its offering with the contributions of the contenders based on certain subjective and quantitative parameters. The product quality being a subjective measure is a relative subject and depends absolutely on the customer’s recognition.

It impacts the estimating choice and situation system of the brand which in the end influences its equity. In a showroom, for example, the consumer would first look around the automobile, then open the door, sit in the seat, and inspect the quality of the details. At Nissan, we are actively developing strategies to improve both the high-quality feel and workmanship perceptible through the five senses.

Brand experience

Brand experience is the total of experiences of the customers with the product offered and the brand generally. It incorporates pre-deal, deal, and post-deal experiences with the brand alongside the experiences with the product advertised.

Customers with great brand experiences will positively think about the brand better over others and will lean towards it over different brands. The concept of ‘experiencing’ the brand in ways that go beyond its ordinary usage is an important part of brand experience. Red Bull, the energy drink brand, is a fantastic example.

Red Bull has organised hundreds of events that excite and engage people in adventure, entertainment, sports, and music, such as its Soapbox Race series.

Brand preference

The brand inclination is one of the real pointers of solid brand equity in the market. A favoured brand can charge more for a similar product. In a grocery store, for example, customers may grab for bottles of ketchup and mustard based on the brand name and the consumer’s emotional affinity to those products.

Similarly, consumers may have higher trust in frozen meals offered under a certain brand name. When a company decides to debut a new product, consumers who already know and trust that brand are more inclined to give that new product a try merely because of the name on the box.

Brand loyalty

A brand-loyal individual picks one brand over others brands which offer similar product. Loyal customers result in increased sales. Also, they additionally are the best hotspots for word of mouth. Popular brands such as Pepsi, Coca-Cola, and Starbucks are well-known instances of brand loyalty.

As with these well-known businesses, their brand devoted fans utilise them not because they are the only option (far from it), but because they have a relationship with them. They will tell individuals to utilise or buy from their favoured companies without question.

Brand Awareness

To illustrate the notion of brand awareness, use Coca-Cola as an example. The brand Coca-Cola has such market recognition that Coke is commonly used as a synonym for any soft drink. The possibility that customers are aware of a product is referred to as brand awareness. It is also the degree to which consumers associate the brand with a certain product. Building brand recognition is advantageous for marketing. It aids in the promotion of your company and products, especially in the early stages of a business.

Products or services are not able to generate brand equity on their own. It is developed as an outcome of a customer’s experience. In other words, it is an outcome of authentic relationship between consumer and brand. Marketers are constantly putting creative efforts into presenting their product or service with a good brand image.

Awareness of a brand is a very important thing and brand is introduced to its target audience in a way that it gets noticed. Brand awareness refers to the introduction of a brand to its target audience in a way that gets it noticed.

The market performance of a brand is affected by its positioning. Brand awareness is created using brand products, brand vision and brand identity to create an impact on the minds of the customers. It is the manner by which your customers perceive that you are unique and superior to different decisions in the commercial centre. With the help of brand awareness, your customer can recognise your product and services. A brand can help audience recall, understand, and become comfortable. Therefore, brand awareness is necessary and the very first step of creating a brand.

Because of a monopoly in a specific category, products frequently become well-known brands. However, if the rivalry is too fierce, items fail to stand out. An excellent marketing effort may help companies become known as a trustworthy brand. Consider the following advertising efforts:

Gillette would be connected with the term “the finest a man can get.”

When most people see the sign “I’m Lovin It,” they immediately think of McDonald’s.

People would be reminded of Nike by the tagline “Just Do It.”

These are well-known brand taglines that practically everyone is familiar with. That is the goal of any brand awareness and brand recall strategy. Logos, too, serve a similar function. Most people, for example, equate four rings with Audi. Similarly, the Adidas emblem would be identified as three parallel stripes of varied lengths. So, taglines and logos are suggestions, and brand awareness is successful if customers can recall the trademark based on those hints.

Brand Identity

The general character of a brand makes up its identity. By showing embodied attributes, for example, being brave or trendy, the brand sets up a method for speaking with the buyer that reverberates all through each showcasing effort. Organisations can think about their brand as an individual and think about how this individual would talk or act and what dispositions or styles they would grasp. Purchasers at that point realise what is in the store while collaborating with the brand.

To make a loyal customer base, companies search for approaches to get purchasers excited for their products. One way organisations approach this is by building up and advancing their brand identity– an idea that ascribes human qualities to the brand name and the majority of the related products and services that falls under that brand. A brand identity is powerful in light of the fact that buyers can associate with brands that have attributes similar to their own.

Take, for example, McDonald’s. Their brand is young, value-driven, playful, and enjoyable. When it comes to buying lunch for an office full of co-workers or a minivan full of cub scouts, McDonald’s is the safe bet. That is the McDonald’s brand. Branding components include the red and yellow colour scheme, the warm, inviting golden arches, the phrase “I’m lovin’ it!” and the joyful tone of all their ads. These brand features work together to form McDonald’s brand identity, the picture of McFlurries and the cost-conscious ease that comes to mind when you see the McDonald’s logo.

The brand identity prism was characterised by Jean-Noel Kapferer and signifies the six parts of brand identity. These are rules for organisations to extend their brand in successful ways that they can speak with customers. The more an organisation can join all six attributes, the more grounded the brand identity will be overall. Building up an increasingly hardened brand image using the brand identity prism makes it simpler for an organisation to showcase its brand to shoppers.

Physique

This angle speaks to the majority of the physical characteristics that will be seen by customers, including the brand’s logo, colours, shape, and some other symbols. This is the establishment of the brand since it brings out a visual picture in the brain of the customer that they will review when speaking or considering the brand. It is vital for organisations to make a brand physique that is anything but difficult to perceive and recall just as being sufficiently exceptional to separate from different brands. Every single effective brand pursues this standard.

For example: Coca-Cola emphasises the ‘Coke Bottle’ and its appearance in all of its marketing communications. When Coca-Cola initially enters a market, it always begins with the standard Coke bottle. Coke cans, predictably, include an outline of the iconic Coke bottle. As a result, the brand’s physical look is preserved.

Personality

The general character of a brand makes up its identity. By showing embodied attributes, for example, being brave or trendy, the brand sets up a method for speaking with the buyer that reverberates all through each showcasing effort. Organisations can think about their brand as an individual and think about how this individual would talk or act and what dispositions or styles they would grasp. Purchasers at that point realise what is in the store while collaborating with the brand.

For example: Mountain Dew, a Pepsico drink, promises thrills and excitement and hence usually includes celebrities who are seen around sports.

Culture

The way of life means a more profound comprehension of what the brand relies on to the extent of esteems, standards, inceptions, and practices. Organisations can ingrain their qualities and perspective into the brand by associating it with their message. Brands can be eco-accommodating, socially capable, among others. Frequently, a brand is associated with their nationality or region.

For example: Royal Enfield bikes have a cult following in India due to the brand’s strong culture. Though it started slowly, the brand is now the fastest growing in the Indian motorcycle business in terms of both followers and market share.

Relationship

This attribute in the brand identity prism speaks to the connection between the brand and the customer. This relationship demonstrates how the brand fits into the shopper’s life and shows how it gives services to customers.

Usually, these associations reflect affiliations and convictions that are available in human connections, for example, a parent and kid relationship. This perspective is especially essential for a brand that gives services since it tells shoppers what they will get when they make a purchase, for example, a simpler purchasing background, progressively advantageous work process or increasingly rich housing.

For example: Nike is a Greek word that refers to distinct cultural ideals, the Olympic Games, and the adoration of the human form. Nike also depicts an odd connection built on provocation: it invites us to let go (‘just do it’). Nike India made an incredible TV commercial honouring female athletes, which included Deepika Padukone. Because of this relationship, the brand is in a position to ask its customers to ‘Just Do It.’

Reflection

Reflection alludes to the demographics and different attributes of the perfect shopper of the brand. This perspective does not manage how the brand is seen by the shopper or any- thing to do with the brand itself. This is helpful for organisations to consider when promoting their brand since it gives understanding into the intended interest group. By deciding buyer qualities, for example, demographics, age and foundation, organisations can change their campaigns to reflect who the target buyers are along these lines, speaking to all individuals from that gathering.

For example: The majority of garment brands represent a model in the age group that the consumer believes he or she belongs to when purchasing that brand, not the age group that the business is targeting. According to the advertisement below, only a small fraction of people in the age bracket (indicated in the image) will purchase a Louis Vuitton suit. The product’s target audience will be substantially older, but an ad starring a youthful model will make all of those buyers appear younger.

Self-image

This attribute demonstrates how the customers of the brand see themselves. Understanding this perspective is fundamental in connection to different parts of the brand identity prism since it frames brand identity all in all.

For instance, purchasers who use Dove products consider themselves to be wonderful, certain, and idealistic and the organisations which realises this concept are better ready to merge the physical, individual, and social picture of the product to fit these inward customer needs. Understanding both the buyer and the brand is fundamental for making successful showcasing efforts.

Brand Personality

Brand personality is the characteristics of the brands as perceived by customers. V-TV or WOODLAND is examples of brands that are marketed to young people. By creating a brand personality, a marketer may appeal to those people who value that characterisation. Customers prefer the brands that either match their own personality or portray personalities that they aspire for. Consumer also subscribe to the nature of brand personality that are they attribute various descriptive personality such as traits or characteristics to different brand in a wide variety of product categories.

By using a symbol or fictional historical branding strategy, Marketer have even provided on instant personality or heritage for a new product. Marketers are increasingly interested in learning how the experience of consumer visiting their product’s website influences their brands personality.

Brand personality is divided into following parts:

Brand personification

Marketers apply brand personification to create brand personality. In this the marketers try to recast consumer’s perception of the characteristics of product or service into a human such as character. Many consumers express their inner feelings about product or brand in reference to their association with known personalities. Identification of consumer’ current brand personality links and creation of personality link for new product are important marketing tasks.

For example: M&M’s chocolate fudge has been talked about since 1954, but in the early ‘90s, CGI M&M’s commercials featured voices from some of the big stars, with Jon Lovitz “Red” and John Goodman “Yellow” making their strides. They have proven popular enough that the campaign has since continued nonstop with an expanded cast (green, blue, orange, and brown M&Ms joined) and new voice actors – Yellow is now voiced by J. Jonah Jameson, J.K. Futurama star Billy West plays Simmons and Red.

In fact, a few years ago M&Ms took “brand personification” literally for an ad when Red wanted to be human and turn into Danny DeVito. As a result, M&Ms are not just funny commercial concepts, they have become popular characters in their own right, and are arguably the most recognisable candy mascot since Bart Simpson.

Product personality and gender

A product personality or persona, frequently bestows the product or brand with a gender. The allocation of gender as part of a product’s personality description is fully consistent with the market place reality that product and service are viewed by consumer as having gender.

For instance, coffee and toothpaste are viewed to be masculine product and both shop a shampoo to be feminine product. Lux, for example, has a feminine, compassionate, reliable, pure, sensual, calm, and mature product personality. Lux is a soap for quality-conscious ladies, particularly those from the middle class. It is commonly utilised by persons who are self-conscious about their looks and wish to seem attractive.

Product personality and geography

Marketers have learned that certain product personality possess a strong geographical association in the minds of the consumers. The product’s manufacturer creates a geographic personality for the product such as a product name that reflects the geographical location where a particular brand is used. Brands, for example, include names that refer to actual locales, such as Philadelphia cream cheese and Arizona iced drink. Products might also have fake names like Hidden Valley and Bear Creek.

Brand Communication

Brand equity is the result of the efforts employed in brand communication and brand positioning. Brand communication plays a pivotal role in advertising and brand building for a product or service. It involves various combinations of activities, such as advertising, promotions, reviews and managing review, to convey brand differentiation to customers. Brand communication occurs when potential customers interact with a particular brand either through signing up for newsletter, writing a review and communicate through raising a query.

Brand communication should be effective using various methods of communication. It is a part of brand marketing strategy and an integration of advertising, personal selling, sales promotion, public relations, and direct marketing. Advertising, sales promotion, public relations, digital marketing, direct marketing, and personal selling are the important brand communication tools.

The following are some Advantages of Brand Communication:

Makes an impact

Good brand communication will always have a great impact on customers and make them feel more connected to the brand. An example of this is any social campaign you see in the market – it makes a huge impact on customers if executed properly. The reason behind this positive effect is the brand and their creative agency. You can read this article about social ads with a strong message.

Makes you an authority

Bosch and Siemens are two brands we respect because they always talk about their superior engineering. The products are superior and far better than most of their competitors. However, the fact that the brand does not convey these values will not make the brand an authority on this issue.

Monster.com is an authority when it comes to job seekers. Rolex is an authority on watchmaking. This authority is built not only with product design, but also with brand communication.

Differentiates

A brand that connects with customers differentiates itself from its competitors. This is a great competitive advantage for the brand, because when brand comparisons are made, the loyalty and following a brand has makes it different from its competitors. There are many brands of Smartphones or Air Conditioners and even televisions.

But people will always use Daikin on air conditioners or Samsung/Apple on smartphones. These are brands that differentiate themselves through market offerings as well as brand communication.

Increases engagement

One of the most important advantages of positive brand communication is that it builds loyalty in the minds of customers. If the customer has a positive experience with the brand, repeated brand communications with the customer through advertising or promotion will make the customer an advocate for the brand. This single customer can bring other customers to the brand through word of mouth. Brand communications are necessary for repeated customer exposure.

Improves the market

A brand that communicates with its customers, slowly and steadily creates a positive market for itself. HUL (Hindustan Unilever Limited) and P&G are companies that understand this very well. These companies deal with many different brands and products at once. And one of the first strategies these companies use to make a product acceptable is to increase brand communication in the marketplace.

Brand Image

When you think of premium brands, there are certain brands that come to your mind. It is because of brand image. Therefore, the brand image is how customers think of a brand. Brand is a unique bundle of associations within the minds of target customers. The brand image is a set of belief that held about a specific target customer and what the brand stands for. It is how customer perceives out of a product and how a brand conveys emotional value of a product and not a mental image. It should highlight an organisation mission and vision.

The unique logo of brand reflects the image of organisation business and supports the key value of the organisation.

When you associate with a particular brand, you form a brand image based on those associations. For instance, Toyota is associated with reliability. Every brand tries its best to form a positive and unique brand image. It can be empowered with packaging, word of mouth, advertising, and other promotional tools. Brand attributes such as mental/emotional connection and functional benefits form the brand image. These can help a customer to perform an overall assessment of a brand.

Brand image is something which is formed and derived from various offerings such as ease of use, fame, product appeal and overall value. It is the mental feedback of a brand. Positive brand image is formed when the customer expectations are exceeded and goodwill is enhanced to create a brand value of an organisation.

Examples of Brand Image

Coca-Cola is a brand noted for producing a product that is best con- sumed at times of happiness, joy, and positive experience. It is the “original cola” with a “unique flavour.”

Woodland Shoes are sturdy and an excellent choice for outdoor use. They are quite durable.

McDonald’s is perceived as a low-cost brand that offers food swiftly.

Walmart is best recognised as a retail brand that sells things at lower prices than other stores.

Rolls-Royce is a luxury brand that is reserved for the affluent and important.

Nike’s brand image is distinct from that of other garment companies. It is regarded as a cult brand that solely sells sportswear.

Reference

• Budelmann, K., Kim, Y., & Wozniak, C. Essential elements for brand identity.
• Klopper, H., & North, E. (2011). Brand management. Cape Town: Pearson Education.