Session 2 - Corporate and Brand Image

1. Session 2 Ali Raza Merchant IMC CourseCorporate Image & Brand Management IMC 2011 by ARM

2. Understand the nature of a corporation’s image and why it is important Develop tactics and plans to build an effective corporate image Discover the advantages of a quality logo, package and label Cultivate effective brand names, family brands, brand extensions, flanker brands, co-brands, private brands, brand equity and brand recognition Recognize the importance of effective brand and product positioning and utilize strategies to help establish a positive position Topic Objectives IMC 2011 by ARM

3. Corporate Image IMC 2011 by ARM

4. IMC 2011 by ARM The Corporate Image COMPONENTS OF A CORPORATE IMAGE The Corporate Image of an organization has two facets Effective marketing communications begins with the establishment of a clearly defined “Corporate Image”. The image influences customers either positively or negatively as they make purchase decisions For e.g. Corporate brands like Nestle, Apply, Microsoft, Unilever, P&G are respected by consumers TANGIBLE ELEMENTS These are the visible aspects of the organization that consumers see or encounter INTANGIBLE ELEMENTS These are the invisible yet important aspects of the organization that are not openly known to consumer but have an effect on how consumers relate to an organization

5. IMC 2011 by ARM Components of Corporate Image TANGIBLE ELEMENTS Goods & Services sold Retail outlets where product is sold Factories where product is produced Advertising Promotions & other form of communications Corporate name and logo Packages & Labels Employees INTANGIBLE ELEMENTS Corporate, personnel and environmental policies Ideals and beliefs of corporate personnel Culture of country and location of company Media reports

6. IMC 2011 by ARM Role of Corporate Image – Consumer Perspective Assurance Regarding purchase decisions of familiar products in unfamiliar settings Known Corporate Image provides consumers assurance what they can expect from Brands A coke can, Mcdonald’s, KFC or Pizza Hut wherever it is known whatever the location Assurance concerning purchases where there is little previous experience Purchasing from a known corporation is considered safer For e.g. a family on vacation might select Marriott or Holiday Inn as they are familiar with the name but have not stayed there earlier From a consumer’s perspective, the Corporate Image serves several useful functions Psychological reinforcement and social acceptance The psychological comes from customers feeling that they made wise purchasing choices – The product or service will perform well These customers are also concerned about how family and friends will view and approve of their decision – It satisfies the ego and social consciousness

7. IMC 2011 by ARM Role of Corporate Image – Company Perspective Extension of Positive Consumer feelings to new Products Positive Word-of-Mouth Endorsements From the Cos viewpoint of itself, a reputable Corporate Image has many benefits The ability to charge a higher price or fee The ability to attract good employees Consumer loyalty leading to more frequent purchases More favorable ratings by financial observers and analysts

8. IMC 2011 by ARM Promoting the Desired Image Promoting the proper image is critical to an organization’s success It is important to assess co’s existing image to ensure successful future image transmission Marketing experts need to ensure that customers, suppliers, employees and stakeholders are aligned with company’s image The image being projected must accurately portray the firm and coincide with the products and services being sold Reinforcing or rejuvenating a current image that is consistent with the view of consumers is easier to accomplish than changing a well-established image It is very difficult to change the images people hold about a given company. In some cases, modifying or developing a new image simply cannot be done Any negative or bad press can destroy an image that took years to build. If the reputation of a company has been damaged it is a herculean task to fix it.

9. IMC 2011 by ARM Test for Quality Corporate Names & Logos Be easily recognizable Elicit a meaning to the firm’s target market The Corporate Name and Logo is really the cornerstone of a company’s relationship with its customers Quality logos and corporate names must meet four tests Evoke Positive Feelings Be Familiar

10. IMC 2011 by ARM Some Interesting Logos

11. Branding IMC 2011 by ARM

12. IMC 2011 by ARM Branding Brands are names generally assigned to a product or service or a group of complimentary products Most characteristics and benefits of a corporate image apply to brands as well An effective brand name allows a company to charge more for its products, which increases gross margins Strong brands provide customers with assurances of quality and reduction of search time in the purchasing process In mature markets few tangible differences exist between competing brands. It is easy for competitors to copy features, however the difference lies in branding A brand name develops strength in the market place when many customers choose the brand because they consider it memorable and notworthy

13. IMC 2011 by ARM Developing a Strong Brand Name What are the most compelling benefits? What one word describes the brand? Developing a strong brand name begins with discovering why consumers buy and rebuy the brand. The company must address these key questions What emotions are elicited by the brand either during or after the purchase? What is important to consumers in the purchase of the product? A company is then able to develop a strong brand positioning Two important processes that assist in establishing stronger brand prestige are: The brand name must be prominently promoted to capture individual attention The brand name must be associated with its most prominent characteristic for e.g. Crest – Cavity protection, Coke – Refreshing, BMW – Performance driving

14. IMC 2011 by ARM Important Aspects of branding Marketers must identify the “one thing” that the brand stands for which consumers recognize and find relevant Once brand recognition is achieved the next step is to prolong success by consistently promoting the USP or brand differentiator The goal of branding is to set a product apart from its competitors Such brands develop histories through distinct personalities A Family Brand is one in which a company offers a series or group of products under one brand name. For e.g. Black and Decker for numerous power tools When a brand successfully establishes a connection with customers – A powerful brand recognition occurs

15. Packaging IMC 2011 by ARM

16. IMC 2011 by ARM Traditional Elements of a Package Protect the product inside Packaging is the final form in which the product is contained for purchase at retail. The package contains the brand name, the company name, logo and certain information about product Provide ease of shipping, moving and handling Provide for easy placement on store shelves Prevent or reduce the possibility of theft Prevent tampering (drugs and foods)

17. IMC 2011 by ARM Some Interesting Pack Designs

18. Brand Equity IMC 2011 by ARM

19. IMC 2011 by ARM Brand Equity and its advantages Allows manufactures to charge a higher price from its customers - Brand Equity is the set of characteristics unique to a brand which are linked with a strong brand name. It offers a business several advantages over competition which increase the overall financial value and goodwill Creates higher gross margins Provides power with retailers and wholesalers Captures additional retail shelf Serves as a weapon against consumers switching due to sales promotions Prevents erosion of market share

20. IMC 2011 by ARM Steps to Building Brand Equity Research & analyze what it would take to make the brand distinctive Brand name recognition and recall can be built through repetitious advertising Building Brand Equity, however, goes beyond mere brand recognition, Following steps are required to do so. Decide what makes the brand unique Boldly communicate the USP of the brand Spend no more than 30% of the communication budget on driving sales Make domination the goal Deliver on the promise of uniqueness being communicated

21. Brand Extensions & Flanker Brands IMC 2011 by ARM

22. IMC 2011 by ARM Brand Extensions Black & Decker Power Tools Brand Extensions is the use of an established brand name on goods or services not related to the core brand. For e.g. Nike athletic shoes extending its name to clothing line and Black and Decker extending its name to small kitchen appliances In Pakistan Sufi has attempted to do this by extending its name to Edible Oil Black & Decker Home Appliances

23. IMC 2011 by ARM Flanker Brands P&G Primary Detergent Brands A Flanker Brand is the development of a new brand by a company in good or service category it currently has a brand offering. For e.g. Procter & Gamble’s primary laundry detergents are Cheer and Tide. Still the company has Ariel to appeal to target markets where P&G believes that the primary brand is not reaching. P&G Flanker Detergent Brands

24. IMC 2011 by ARM Co-Branding Ingredient Branding Is the placement of one brand within another brand. For e.g. Intel microprocessors in Dell or HP computers Co-branding is the offering of two or more brand in a single marketing offer. Co-branding can be in either of these three forms: Ingredient Branding Cooperative Branding Complimentary Branding Cooperative Branding Is the joint venture of two or more brands in new product or service. For e.g. Airblue, RBS Visa Credit Cards or Sony Ericsson Mobile phones Complimentary Branding Is the is the marketing of two brands to encourage co-consumption or co-purchases. For e.g. Tarang tea milk with Brook Bond Tea etc

25. IMC 2011 by ARM Private Brands Tesco Private Labels Private Brands also known as Private Labels are proprietary brands marketed by an organization and sold within the organization’s outlets. For e.g. Marks & Spencer’s UK selling their own sandwiches and Cola’s. Similarly Walmart selling its own brand of chocolates or clothes.

27. Its products

28. Relative to competitionPositioning is created by variables such as quality, price, image and other factors It is established relative to competition Brands operate in a competitive environment and therefore need to distinguish themselves v/s competition. It exists in the mind of consumers A brand can only be successful if its consumers can clearly identify the image conveyed through communication. If consumers can relate a word that best defines the brand its positioning is said to be successfully established

29. IMC 2011 by ARM Different Positioning Approaches Attribute Based Positioning An attribute is a product trait or characteristic that sets it apart from other products For e.g. Happy Dent chewing gum claiming shiny white teeth Use or Application Positioning Creating a memorable set of uses for the Product. For e.g. Arm & Hammer used it for promoting their baking soda as deodorizer, teeth whitener Price-Quality Relationship Associating a brand with how expensive it is and denoting a high quality perception or vice versa. For e.g. Moven Pick ice cream or HaagenDaz clearly establishing that they are expensive but absolute high quality Competitor Based Positioning Using a competitor to garner a position, whereby one brand is contrasted to show the position of another For e.g. Avis comparing itself with Hertz establishing that they work harder as they are No. 2

30. IMC 2011 by ARM Different Positioning Approaches Product Class Positioning Certain company’s aim to position themselves in a particular product class or category. For e.g. Orange juice was commonly used in breakfast. The industry decided to move its positioning as “Its not for breakfast anymore” Product User Positioning This specifically distinguishes a brand or product with reference to who uses the product. For e.g. For e.g Apple Macs known for Designing v/s PC which are known more for business users Identifying with Cultural Symbol Though difficult to do yet it can be highly effective if clearly linked with something of pride for consumers For e.g. Chevrolet has done this showing that it is as American as baseball – Also Harley Davidson which is respected for its free way of life