6 – Products, Services and Brands: Building Customer Value

Introduction

The goal of business is to acquire and retain customers. Value in a product or service should and almost always is defined on the terms of the consumer. If a customer perceives your product or service as valuable, such perception will result in a purchase. If a customer utilises your product regularly and is pleased with the results, it will produce customer value.

Customer value can be described as the difference between the benefit you receive from a product and the cost of that product in its most basic form. Consumers today are far more educated and aware. They will buy items they believe are worth the price of obtaining them. Consumers are aware of the products, services, and brands available. They usually know exactly what they want to buy and will not waste time looking at things that aren’t right for them. This course will expose you to product, service, and brand concepts that contribute to creating customer value.

6.1 Product Concepts

In a nutshell, a product is a collection of attributes organized in a distinct and identifiable form. A well-known general name, such as salt, steel, computer, entertainment, or crèche, can distinguish a product. Other characteristics, such as brand name and additional services, are not included in this description; for example, Dell and Zenith sell the same product—a PC.

Marketing needs a complete product definition to understand that buyers do not buy attributes. Consumers purchase specific benefits that they view as answers to problems and fulfilments of their demands. As a result, consumers desire the fast-sticking benefit rather than a thick liquid-filled tube called Fevi Kwik. It is critical to understand that any product feature is only valuable if it provides the promised benefit and satisfaction. As a result, a product that gives the necessary benefits can be something other than a tangible good.

For example, there are various alternatives to painkiller medicines that can be used to ease pain.

A product can be classified into five categories:

1. The first level is the primary advantage that customers want, and it is simply a rudimentary version of a product or service designed to answer and satisfy some fundamental need.
2. The second level is a generic product, which delivers the features or properties required to meet the primary demand. At this level, the product will have specific qualities such as a brand name, quality, styling, packaging, colour, and sometimes an instruction manual, depending on whether it is durable, non-durable, or a service.
3. The third level is the expected product, which boasts features or characteristics that buyers generally expect in a product and motivates consumers to buy it.
4. The augmented product refers to well-thought-out and deliberate additions of features, benefits, and services (such as in the case of long-lasting, complex products) such as delivery, installation, customer education and training, after-sales service, guarantees or warranties, payment options, customer complaint redressal, and so on. Marketers purposefully direct the design and manufacture of commodities.
5. The potential product is the fifth level. This refers to all the conceivable enhancements and adjustments the product can undergo.

Level	Air-conditioner
1. Core benefit	Cooling and comfort.
2. Generic Product	Sufficient cooling capacity, acceptable energy efficiency rating, reasonable air intake, exhausts, etc.
3. Expected product	At least two cooling speeds, expandable plastic slide panels, adjustable louvres, removable air filter, vent for exhausting air, power cord at least 60 inches long, relatively safe refrigerant, one-year parts warranty and on-site service warranty, and a five-year warranty on the refrigeration system.
4. Augmented Product	Optional features might include electric touch-pad controls and a display to show indoor and outdoor temps. And the thermostat setting, an automatic mode to adjust fan speed based on the thermostat setting and room temperature, and a toll-free number for customer service, one or two free- services, etc.
5. Potential Product	Silent operation, temperature wholly balanced across the room, and energy self-sufficient.

Example:

Product Line and Product Mix

Most businesses market multiple items rather than simply one or two. To coordinate their marketing of the entire collection of items, they must first grasp the relationship between all of their products. Product item, product line, and product mix concepts assist us in understanding the links between a company’s many goods.

A product item is a specific version of a distinct product, such as Surf Hindustan Lever Limited, which sells Excel as a (premium) product. A product line is a tightly related series of items with fundamentally identical applications and technical and marketing factors. Colgate’s product line includes Colgate Dental Cream, Colgate Gel, Colgate Total, and Colgate Herbal. The entire number of items a corporation markets is called its product mix. Product mix consistency refers to how closely connected different product lines are regarding end-use, manufacturing requirements, distribution, etc. A company’s product mix may include a variety of product lines. The number of product lines a corporation offers is called their product mix width. Product line length is the number of product variants available in a company’s product line.

Product Line Decisions

Many businesses begin with a single product or a product line. Companies decide to expand their product range and/or offer fresh product lines in response to market opportunities or competitors’ movements after tasting success and having more resources available.

For example, Nirma had only one detergent brand for a long time until producing a bathing soap, which added a new product line. HUL recognised the severe danger posed by Nirma washing powder and offered lower-cost detergents.

Companies decide whether to add new goods to current product lines, delete products from existing product lines, or add new ones. Another consideration is improving existing technology to lower product costs or increase quality for stretching (downwards, upwards, or both directions) or line filling.

Product managers must carefully monitor the sales and profits of each item in a product line. The findings will assist them in deciding whether to construct, sustain, harvest, or divest various things in a specific product line.

Line stretching: Product lines tend to grow over time for various reasons, including surplus manufacturing capacity, new market opportunities, sales force, and reseller demand for a more decadent product line to meet customers with diverse tastes and competitive compulsions. Line lengthening adds costs in numerous areas, and decisions are made after thorough consideration. However, at some point, someone, usually upper management, steps in and stops this.

-Downward Line Stretch: Companies sometimes introduce new products to communicate an image of technological brilliance and high quality and position themselves at the higher end of the market. As a result, the company may stretch downwards in reaction to a competitor’s attack by providing a low-end product, or a corporation may produce a low-end product to fill a vacant slot that may appear appealing to a new competitor. Another possibility is that the market will become more appealing at the low end due to the more significant growth rate. P&G, for example, introduced its Ariel Micro system detergent at the high end, ensuring excellent quality. Customer feedback was unfavourable; therefore, the company saw more chances at the lower back and produced the less expensive green alternative, Ariel Super Soaker. Mercedes-Benz has made its E Class model available at a far lower price than its high-end S Class models.

Downward stretch might be dangerous at times. Low-end competitors may strike by going into high-end, while the release of a low-end model by a prestige-image corporation may harm its product image. For example, Parker Pen extended downward and introduced a low-cost ballpoint pen. Parker’s reputation as a high-end product suffered as a result of this. Another danger is that offering a lower-priced item will cannibalise (take away sales from) the company’s high-priced item.

-Upward Stretch: In this case, companies operating at the low end may choose to expand into the high end due to improved chances due to quicker market growth or the need to project an image of a full-service organisation. For example, Videocon entered the market with a low-end twin-tub washing machine. Following the debut of the IFB automatic washing machine and the advent of other manufacturers, the market expanded. The typical middle-class household income likewise exhibited favourable trends. Videocon also produced an automatic washing machine to capitalise on a burgeoning demand at the higher end. Maruti Udyog debuted its mid-priced models, including the Maruti Zen, Maruti Esteem, Wagon R, Alto, and Swift, after first entering the market with the low-end Maruti 800 and Maruti Omni. For this reason, Toyota launched its Lexus luxury sedan as a stand-alone product (with no ties to Toyota). It didn’t want to be tainted by Toyota’s undeniably excellent but mass-market reputation.

Certain dangers may be related to upward line stretching. Prospective clients may believe that a newcomer in the high-end category would not make high-quality products, or competitors already well-established in the high-end market may counterattack by introducing items in the low-end market. For example, the long-established footwear business Bata failed to expand upward and eventually produced its Power brand of low-cost sports shoes.

-Both-way Stretch: Companies operating in the middle of the market may stretch their product line(s) to capitalise on opportunities in different market segments. The most significant concern is that it will cause some customers to downsize. On the other hand, companies frequently prefer to keep their clients by offering low-cost options rather than losing them to competitors.

Line Filling: A corporation may add more goods to its existing product line(s). Line-filling aims may include realising incremental profits, answering dealers’ needs in response to their concerns that they are losing sales due to missing products in the lines, excess capacity pressures, and attempting to fill vacant item slots to keep competitors out. For example, videocon and other TV and AC makers have produced models that range in price from high-end to low-end. Similarly, IBM, HPCompaq, Acer, and Sony, among others, have produced laptop PCs with various features and prices ranging from high-end to low-end.

Line filling may occasionally result in cannibalization and confuse customers regarding the items’ positioning unless the organisation successfully separates each item meaningfully in the customers’ eyes.

Line Pruning: Line pruning is the inverse of line stretching in that it entails an intentional choice to reduce the number of items in a product line (s). Market conditions and customer tastes change over time, and corporations discover that some of their product lines contain unneeded varieties and pack sizes. Another reason for line cutting could be a lack of available production capacity. Product managers must assess their product lines regularly, reviewing sales and costs to identify items reducing earnings. Procter and Gamble (P&G) was recognised for having extremely long product lines but sought to rationalise and reduce its product ranges. For instance, the Head & Shoulders shampoo line featured 31 items; P & G later reduced this product range to 15 types. The corporation now believes keeping product lines basic and avoiding needless complexity is essential. If the company can use an existing product formula or package to enter a new market, it can save valuable resources and move more quickly.

Product Mix Decisions

Most businesses have a diverse product portfolio. Companies that provide a wide range of items want to serve a much broader and more varied group of clients looking for solutions to many demands. This also aids in reducing a company’s risks across multiple products. For example, ITC expanded from tobacco-based products to hospitality, financial services, and consumer non-durables like edible oil and atta. Given the growing criticism from consumer advocates and government limitations on some sorts of cigarette advertising operations, ITC would have faced substantial business risk if it had only a single product line of different brands of cigarettes.

Companies make product mix decisions based on competitive situations, current or emerging market opportunities, consumer lifestyles and taste changes. As previously stated, HUL experienced competitive challenges from low-cost washing powders and responded by introducing low-end brands at various price points. Maruti introduced suitable models in response to opportunities in the medium-price sector of passenger automobiles.

ITC introduced sportswear with the younger generation’s habits in mind, seeing it as a logical extension of its brand as a lifestyle products company. Bajaj Auto debuted the Pulsar motorcycle, and Apple Computers debuted the iPod, a high-quality portable digital music device.

For a long time, the iPod was considered a high-end product. Market opportunities arose, and the company launched medium-priced variations. These companies have two or more product lines and operate in highly competitive markets. Furthermore, there is some convergence of diverse demands being fulfilled by goods that integrate the features of a mobile phone, camera, PDA, online communicator, and music system.

6.2 Services

Today, end users, corporations, and non-profit organisations widely employ services as goods. They are often delivered by applying human and/or mechanical effort to people or objects.

Several definitions of services have been proposed. According to Berry and Parasuraman, “A service is an intangible product involving a deed, a performance, or an effort that cannot be physically possessed”.

Christian Gronroos has proposed a more comprehensive definition of services:

“A service is an activity or series of activities of more or less intangible nature that normally, not necessarily, takes place in interactions between the customer and service employees and/or physical resources or goods and/or system of the service provider, which are provided as solutions to customer problems.”

—Christian Gronroos, Service Management and Marketing, (Lexington Books, 1990)

6.2.1 Characteristics of Services

The challenges that arise while marketing services differ from those when selling goods. This is due to the usual service features. According to Christopher H. Lovelock, typical service qualities include:

(1) intangibility,

(2) inseparability of production and consumption,

(3) heterogeneity,

(4) perishability,

(5) client-based interaction, and

(6) customer contact.

Intangibility	It is difficult to evaluate, the Marketer sells a promise, it is difficult to advertise, it is challenging to justify prices, and Goods are augmented with intangible services.
Inseparability	The activities of service production and consumption are simultaneous. Consumers must participate in the production, but they do not take physical possession of the service. The Role of the service provider is critical.
Perishability	Services cannot be stored. Balancing supply and demand is very difficult. Unused capacity is lost forever, and there is Considerable variation in demand.
Client-Based Relationship	Success depends on satisfied customers in the long run. Customer relationship maintenance is critical, and retaining satisfied customers is essential.
Customer Contact	Service providers’ commitment is critical to delivery. A high level of employee training and motivation is essential to success. Service marketers try to change high-contact services into low-contact services without affecting customer satisfaction.

Intangibility

Unlike most physical things, where a prospective buyer can inspect the physical dimensions, aesthetic appearance, and other features, a pure service cannot be evaluated using any physical senses. Many promotional statements concerning a product’s tangible qualities can be validated by inspecting the goods before purchase. The intangibility of services implies that such elements do not exist and that a service cannot be seen, touched, tasted, or smelled.

For example, an ambitious student cannot see, touch, taste, or smell the education students receive in a management college by attending classroom lectures and completing various projects. Similarly, a lady coming to a beauty parlour for a facial cannot tell how she will look once the service is completed unless the service is conducted. It is impossible to check a surgical sample before purchasing and consuming it. Only after buying and consuming a service does the consumer have insight into the employees’ dependability, knowledge, attentiveness, and personal care, among other things.

Physical products have specific criteria against which quality can be assessed, but any quality parameters can frequently be determined in consumers’ thoughts. Much is dependent on customer expectations.

The intangibility of services causes some difficulties for service marketers. A service marketer sells a promise to clients, and customers are compelled to place some faith in the service provider to receive the desired level of service.

Marketers encounter a similar challenge when communicating with clients about pure services because there is nothing tangible to advertise or exhibit in a store. Where natural objects constitute an essential component of the service offering, the problems may be less complicated. The visible portion provides clients with a foundation for judging quality. In the case of life insurance, for example, an auto service garage may offer soothing tactile cues to enhance consumer trust, but there is nothing concrete to demonstrate. When comparing rival offerings, consumers are more likely to be confused due to a lack of practical characteristics. It is worth noting that service marketers aim to add tangible physical evidence to their service offers wherever possible, but pure tangible product marketers frequently try to supplement their items by integrating components such as assured post-purchase service.

Pricing services is another issue. In the case of tangible things, there are raw material and labour costs to establish a pricing base, but in the case of many services, identifying the cost of creating and delivering the service is highly challenging. It is impossible, for example, to quantify the cost of developing and providing a massage or haircut. Furthermore, marketers may have difficulties justifying service costs to customers because buyers cannot evaluate services before consumption.

Inseparability

In the case of tangible objects, production and consumption are two distinct activities, and customers are not involved in the manufacturing process. Goods are often manufactured in a central place at various periods, stored, and transferred to regions with actual or anticipated demand. The inseparability of services refers to the reality that service creation and consumption are inextricably linked. Both the creation and consumption of services occur at the same time. Tangible things can be purchased, brought home, stored, and consumed over time. This service attribute has marketing implications.

Because of this inseparability, the service provider’s function becomes crucial in the delivery process, and in some extreme circumstances, human customer care must participate in service production.

A patient, for example, must be present and participate in surgery; a consumer must be present in a facelift service. According to Mary Jo Bitner, the service provider is the service in the consumer’s eyes for services such as education, healthcare, and hairstyling. The service marketer must pay close attention to practical service people’s training.

Heterogeneity

Most physical things can now be created with a high degree of consistency because of technological advancements. People-centred services, on the other hand, are prone to fluctuation or quality variance. Because of the nature of humans, it is tough to assure service consistency. Tangible products allow for examination and rejection before delivery, but this is not always achievable with services.

The most significant concern of service marketers is the unpredictability of service production standards, particularly in areas where consumers are heavily involved in the service production process and monitoring is impracticable, such as personal healthcare. Operating machine-based services, such as telecommunication, at a highly standardised level is feasible. Service quality can vary in four ways:

(1) from one marketer to another,

(2) from one service to another within the same company,

(3) from one outlet to another within the same company, or

(4) from customer to customer, day to day, or even hour to hour on the same day.

In general, equipment-based services are less unpredictable than those necessitating significant personal engagement in manufacturing.

In general, service variety causes specific issues for marketers when developing brands. Service organisations strive to reduce unpredictability and improve systems for selecting, training, motivating, and controlling service people. Companies also aim to tailor services to meet the individual wants of consumers to obtain an advantage. To reduce variability, marketers are migrating to equipment-based services wherever possible.

For example, more banks are increasingly installing ATMs to eliminate the need for human intervention, and many banks are modernising their systems to provide online banking services.

These are techniques for converting high-contact services to low-contact ones.

Perishability

Very few services experience a consistent pattern of demand throughout time. Most services see significant swings in demand.

According to D. L. Kurtz and L. E. Boone, most services’ utility is transient. Services, unlike tangible things, cannot be stored. Tangible product manufacturers might keep unsold products on hand to resell in the future. In contrast, unsold service capacity from one event cannot be saved and offered on subsequent demand occasions.

Example: If passenger seats on an airline aircraft remain unsold after the aeroplane departs, the capacity cannot be saved to meet the increased demand on another occasion and is wasted for that specific occasion.

As a result of these factors, service marketers confront challenges in controlling supply and demand. Airlines utilise sophisticated seat reservation systems to ensure full occupancy by adjusting rates for each flight to maximise revenue. Service demand is also time or season-sensitive, and many services, such as passenger trains, highways, and movie theatres, suffer peak and off-peak demand issues. Every empty seat represents a loss of money on that particular occasion, and non-availability of service represents an opportunity cost.

Client-based Relationships

According to Paul Peter and James H. Donnelly, certain services’ success depends on building and maintaining client connections, resulting in satisfaction and repeat purchases over time.

For example, lawyers, accountants, and financial consultants regard customers as clients. These professional service providers are only successful if they have a steady stream of clients who regularly use them as consultants.

Customers who are satisfied with their services suggest them to others, and these specialists create a satisfactory list of satisfied consumers through positive word of mouth. Customers will only become loyal to a service provider if they receive high satisfaction. Many customers use the services of a specific insurance agent regularly, and the insurance agent establishes an extensive client list by word of mouth.

Customer Contact

This refers to services that require interaction between the service provider and the consumer to be delivered. In such cases, service delivery personnel become the source of developing satisfied clients. One of the most essential customer service concepts is that happy staff contribute to happy customers and vice versa. According to surveys, employee satisfaction is the most critical aspect of providing high-quality service. Thus, focusing on training and inspiring staff to perform customer-centred can help reduce customer contact issues. Service providers are attempting to minimise client interaction issues by converting high-contact services to low-contact ones, utilising new technological improvements. This frequently leads to the problem of service being more impersonal, and the nature of humans is such that they prefer personal touch.

6.2.2 Classification of Services

In today’s commercial world, the distinction between pure goods appears to have vanished or is rapidly vanishing. Most of the products we purchase are a combination of goods and services. Products might be either excellent or service-dominant. Salt, for example, is a good-dominant product, but teaching is a service-dominant commodity. Remembering that tangibility and intangibility are two ends of a product spectrum is useful. Good-dominant products are referred to as tangible products, whereas service-dominant products are referred to as intangible products. Good and service-oriented products, such as restaurants, will be in the middle of the spectrum. Knowing where the product falls on the service continuum is critical in creating service product marketing tactics. According to Theodore Levitt, there are no such things as service industries. Service components are more or less than others in just a few industries.

The Service Continuum

6.2.3 Extended Marketing Mix for Services

The marketing mix for services is comprehensive, encompassing all seven Ps. The first four aspects are the traditional 4Ps, which work well for tangible products. The other three factors are significant and must be considered in service marketing. In addition to the four Ps (Product, Price, Place, and Promotion), B. H. Booms and M. J. Bitner proposed three more Ps for service product marketing: people, physical evidence, and process.

People

People in a service organisation who create and deliver services are essential to the marketing mix. Service workers are vital to consider because they are the ones who provide the majority of services. Service staff can occasionally become practically a distinguishing feature for some firms, and they can even become the business itself. Parasuraman and Berry say a service company is only as good as its employees. The company may be left with minimal assets to acquire a competitive advantage if these individuals are fired. Service staff’s actions have a significantly more significant direct impact on consumers’ results. The proper selection, training, and motivating of service delivery staff can spell the difference between success and failure for a service organisation. Customers who are pleased with a service are more likely to purchase it again and share positive word of mouth. A dedicated service employee should ideally be competent, caring, and responsive and possess initiative and a problem-solving attitude. Personnel performance can significantly impact service quality perception in labour-intensive businesses where workers must perform their responsibilities ‘live’ in front of clients.

Physical Evidence

Physical evidence reduces customers’ risk perception and provides objective evidence of the promised service delivery. Tangible proof of service quality can take a variety of forms. At its most basic, it may be a brochure depicting a management school’s infrastructure and physical facilities or a tourist brochure depicting hotels and resorts. The appearance and smiles of the airline crew and stewardesses give some indication of the quality of service.

For example, every McDonald’s location, from the outside to the inside, and every staff member instills confidence in the service customers can expect and receive.

Process

Process In high-contact services, consumers place a high value on the process. How personnel serve customers and the amount of waiting time involved in the service production process can significantly impact diners in a restaurant.

A service blueprint is a method of analysing processes. The proposed blueprint quantitatively describes critical service elements such as time and logical sequences of actions and processes. It also specifies actions/events that occur at the time and place of the interaction (front office) and actions/events that occur outside of the users’ line of sight but are critical to the service.

Example: Obtaining a loan involves filling out application forms, submitting them, undergoing credit checks, receiving approval, and finally receiving the loan. If the process with a bank is too long and bothersome, customers may switch to competitors.

6.2.4 Service Quality and Differentiation

One of service organisations’ most challenging problems is providing high-quality services. At each service encounter, the quality of service is evaluated. Because of the nature of the service, considering it is challenging. Zeithaml, Parasuraman, and Berry define service quality as the customers’ perception of how well a service fulfils or exceeds their expectations. It is the degree to which a service conforms to the specifications and expectations of the consumer. Consumers establish service expectations based on previous experiences, marketing materials, and word-of-mouth, and the consumer is ultimately responsible for judging service quality. This compels service marketers to use an outside-in strategy and evaluate their service quality from the consumer’s perspective. Service marketers must first understand what benefits consumers expect from their service products and then design products that meet or exceed those expectations. Customers are won or lost based on the quality of service when competing services are identical. Customer value is emphasised in service marketing to gain a competitive edge. The following equation depicts the balancing act required to provide consumers with service satisfaction.

Service Quality Assessment: Because services are intangible, evaluating them can be challenging. Nothing can be seen, touched, smelled, tasted, or heard. According to Zethaml, services have limited search criteria unlike tangible objects, and practically all quality-related elements depend on experience during service acquisition and consumption.

Beauty parlour services, for example, have a high level of experience.

In the case of some services, such as surgical operations or consulting, it may be difficult for consumers to evaluate service quality even after purchase and consumption because they lack knowledge or skills and must have a great deal of faith in the competence and integrity of the service provider.

According to Gronroos, a service marketer must first identify how consumers perceive service quality and then determine how service quality is influenced to compete successfully. Furthermore, Gronroos contended that the functional quality dimension of service is more significant than the technical quality dimension. This suggests that the most important component of service quality is the interactive aspect of service marketing (interaction between service employees and consumers).

Managing consumer perceptions of service quality necessitates a connection between consumer expectations and perceived service quality. Service marketers’ promises and messages must be reasonably compared to the service customers will receive to keep the gap between consumer expectation and perception as small as possible. Second, management must understand what factors influence the service’s technical and functional characteristics and how consumers perceive these service quality dimensions.

Parasuraman, Zeithaml, and Berry created a model outlining the significant need for high-quality service. This model helps us better understand the nature of service quality and deliver high-quality services.

Model of Service Quality

1. Gap between consumer expectation and management’s perception:

Management at service firms does not always appropriately perceive consumer expectations. For example, a hotel manager may believe customers desire low-cost accommodations, while customers may be more interested in comfy, clean mattresses and decent room service.

2. Gap between management’s perception and service-quality specification:

Management may accurately comprehend consumer expectations but fail to develop a performance quality standard. For example, hotel management may instruct employees to provide “fast” service without specifying a time limit standard.

3. Gap between service-quality specifications and service delivery:

Service personnel may be undertrained, lacking skill, or unmotivated to meet the established standards. For example, the room service may take longer than expected.

4. Gap between service delivery and external communications:

This relates to the difference between messages to customers describing the service and the service supplied. Consumers create expectations based on service marketers’ advertising and corporate representatives’ claims. For example, suppose a hotel brochure depicts a gorgeous room with a scenic view from the window, but the buyer finds the room dull and unappealing. In that case, external communications have incorrectly influenced consumer expectations.

5. Gap between perceived service and expected service:

This gap is determined by the magnitude and direction of the first four service delivery gaps. It occurs when the consumer perceives something other than the service provider’s intended. For example, a cabin crew member may teach how to use an oxygen mask to express concern and calm airline customers. Some passengers may interpret this as indicating that the crew anticipates a hazard during the trip.

There is plenty of evidence of low service quality in everyday life. Trains are late, flights are delayed, teachers fail to perform, phone problems go unresolved, salespeople are nasty, and water taps run dry, among other things. On the other hand, excellent service quality is unlikely to escape undetected. According to research, people evaluate service quality using five characteristics. According to Parasuraman, Zeithaml, and Berry, these criteria are essentially the same regardless of the type of service. The five service quality factors are as follows:

1. Reliability: This relates to consistency in performance and reliability, such as billing accuracy, maintaining accurate data, and providing services on time (an airline flight departing and arriving on time, precise electricity bill, telephone fault complaints recorded promptly and accurately, etc.).
2. Responsiveness: Service employees’ willingness or readiness to provide service as soon as possible (such as handling urgent requests, calling back customers, an ambulance arriving within a specified time, delivering cooking gas within one hour, etc.).
3. Assurance: Service employees’ knowledge and ability to express trust and confidence, such as contact personnel’s expertise and skill, company reputation, and personal characteristics of employees. (For example, a well-trained school teacher, a well-known and respected service marketer, a doctor’s approach to patients, etc.)
4. Empathy: Caring and personalised attention given to customers by service professionals (for example, attentively listening to customer demands, caring about customer problems, a nurse counselling a post-surgery patient, and so on).
5. Tangibles: Physical proof of service, including the physical appearance of the facility, service staff, and equipment or tools used to offer service (e.g., a clean and professional-looking doctor’s consulting clinic, restaurant cleanliness, attentive waiters, attractive and pleasant air hostesses, and so on).

Service marketers are always looking for new methods to differentiate their service offerings. Because of their intangibility, this becomes more relevant. Without tangible differences, consumers are likely to perceive rival services as very similar. One method for differentiating the service is to include appealing features that can be pushed.

Example: Some banks have begun offering their cards without any renewal fees in the highly competitive credit card market. Some banks provide fixed deposit programmes that customers can use as savings accounts. Some banks offer extended banking hours, while others open their branches on Sundays. Union Bank of India launched ‘Insured Recurring Deposit,’ which added Life Insurance to recurring deposits.

Ideally, augmentations should be difficult for competitors to replicate. In any event, the service provider who consistently adds novel features significant to consumers obtains brief competitive advantages and establishes a reputation as a leader in providing innovations.

FedEx, for example, was the first to install software that allows customers to trace goods in transit.

6.3 Brands

A brand is a name, word, sign, symbol, design, or a combination of these designed to identify and differentiate the goods and services of one seller or group of sellers from those of the competitors. “brand identity” refers to a distinct set of brand associations the strategist hopes to create or maintain. Packaging encompasses all activities centred on creating a container and a graphic design for a product.

Branding is a critical choice issue in product management. Well-known brands can charge a higher price. Mercedes, IBM, Sony, Canon, and other brands have a sizable brand-loyalty market today.

Brands exist in the minds of consumers and are much more than just a tag for identification and recognition. They are the foundation of consumer relationships, bringing consumers and marketers closer together by forging a link of faith and trust. The brand promise is consistent with quality, service, and total psychological pleasure. The marketer must define a brand mission and a vision of what the brand is and what it can do. The marketer must remember that they are selling the consumer a contract about how the brand will perform, and it must be honest. All of these elements provide value not only to the consumer but also to the marketer. Brands identify the manufacturer or source of a product. This enables customers to attach blame to a manufacturer or distributor. Based on their previous usage, brands are a way to eliminate search costs and hazards and simplify the product purchase choice process.

6.3.1 Brand Identity

Different brands have varying degrees of market strength and value. Many brands are mainly unknown to customers, while others have a high level of awareness regarding name recall and identification. According to David A. Aaker, brand identity is “a distinct set of brand connections that the brand strategist seeks to develop or retain.” These associations convey what the brand represents and suggest a promise to customers from the members of the organisation.” In different literature, the terms “brand identity” and “brand image” are used interchangeably. Brand identity is an inner idea that reflects the brand manager’s decisions about what the brand is all about. The brand image represents outsiders’, i.e. customers’, perceptions of the brand. Customers are concerned with the image they have of a brand. The sum of the brand’s impressions in the consumer’s mind is called brand image. This encompasses a consumer’s perceptions of the brand’s physical attributes, performance, functional benefits, the types of people who use the product, the emotions and connections it evokes, and the images or symbolic meanings it elicits. In other words, the brand image is how a consumer perceives a brand in its “totality,” including physical and perceptual components. It is a concept that influences customer behaviour about a brand.

A brand, according to Jean-Noel Kepferer, is a complex symbol capable of communicating up to six aspects or meanings:

Physique: The palpable, corporeal characteristics are called the physique dimension. A product’s physical dimensions are usually included in its name, features, colours, logos, and packaging. For example, the IBM brand’s physicality would consist of data systems, servers, desktop PCs, notebook PCs, and services, among other things.

Personality: Marketers may strive to give a personality to a brand on purpose, or individuals may attribute a personality to a brand on their own. It’s hardly unexpected that people characterise some brands as if they were live individuals, using adjectives like “young,” “masculine,” “feminine,” “exciting,” “rugged,” “rebel,” “energetic,” and so on. Brands typically acquire personalities due to planned marketing efforts and the employment of endorsers. For example, ads for the Bajaj Pulsar communicate “Definitely male.” Boost’s personality is young, lively, energetic, and successful.

Culture: Knowledge, beliefs, rites and rituals, abilities, habits, and values are all part of culture. A brand’s different qualities and principles that drive it are reflected in it. A brand’s culture manifests in a variety of ways. Apple laptops, for example, reflect the company’s culture. They represent simplicity and friendliness. Their symbol (a munched apple) represents being unique and not following the crowd. Mercedes represents German engineering that is disciplined, efficient, and of high quality.

Relationship: Brands frequently involve marketers and customers in transactions and exchanges. For example, the Nike brand is Greek, refers to the Olympics, and implies the glory of the human form. “Just Do It” is all about winning, the insignificance of age, and encouraging us to have fun. Apple conveys an emotional bond based on warmth.

In service products, relationships are crucial.

Reflection: This refers to defining the kind of people who use it. It is reflected in the image of its customers, who are young, old, wealthy, modern, and so on. Pepsi, for example, represents young, carefree individuals. Allen Solly’s brand is reflected in a typical youthful executive.

However, this does not imply that they are the only users. The concept of the target market encompasses more than just reflection.

Self-image:  Self-image refers to how a customer perceives herself/himself about the brand. A customer’s self-image is how she or he perceives herself or himself. For example, users of the Bajaj Pulsar motorcycle are considered formidable young males. Nike customers perceive their inner selves reflected in the brand’s personality.

6.3.2 Brand Equity

Brand equity is a popular and potentially essential marketing idea in the 1980s. It has increased the significance of branding in marketing strategy. Many academics have shared their perspectives on determining brand equity.

“Brands have equity because they have high awareness, many loyal consumers, a high reputation for perceived quality, proprietary assets such as access to distribution channels or patents, or the kind of brand associations (such as personality associations).”

—David A. Aaker, Managing Brand Equity, (Free Press 1991)

Kevin Lane Keller defines brand equity:

“Brand equity is defined in terms of marketing effects uniquely attributed to the brands – for example, when certain outcomes result from the marketing of a product or service because of its brand name that would not occur if the same product or service did not have the name.”

—Kevin Lane Keller, “Conceptualising, Measuring, and Measuring Customer-Based Brand Equity,”

Journal of Marketing, (January 1993)

According to Kevin Lane Keller, the challenge for marketers in building solid brands is ensuring that customers have the right type of experiences with brands of products and services, as well as ensuring that the brand’s related marketing programmes elicit the desired thoughts, feelings, images, beliefs, perceptions, opinions, values, and so on. A brand must be carefully managed to develop favourable brand equity. According to David A. Aaker, the four key aspects underlying brand equity are brand awareness, a brand’s perceived value, positive connotations with a brand, and brand loyalty among consumers, in addition to genuine intellectual assets such as patents and trademarks. These duties necessitate ongoing investment and a focus on research and development, effective advertising, and good consumer and trade service. Very ancient but well-managed brands appear to be everlasting, contradicting the concept of the brand life cycle.

For example, Lifebuoy, Dettol, Lux, Bournvita, Colgate, Coca-Cola, Gillette, and P&G believe the brand life cycle does not affect well-managed brands.

Brand Equity Model

Customer-based brand equity has five dimensions, according to Walfried Lasser, Banwari Mittal, and Arun Sharma:

1. Performance: This part of brand equity focuses on physical and functional features. Based on their experience, customers are interested in how faultless and long-lasting the brand is.
2. Social image: This focuses on the brand’s social image and its esteem for customers’ social and reference groups.
3. Value refers to the customer’s impression of the brand’s value. This is the ratio of the related costs to the perceived delivered value.
4. Trustworthiness: The customer’s confidence level in the brand’s performance, quality, and service. This demonstrates the brand’s dependability, that it will always look after its customers’ interests, and that the people behind the brand can be trusted.
5. Identification: The degree to which clients emotionally attach to the brand. Their connection to the brand is significant, corresponding to their self-concept and objectives. This refers to the customer’s psychological association with what the brand represents.

6.3.3 Brand Image

The brand image is the central notion between the brand and its equity. It is the driving force behind brand equity. Brand value can be adjusted positively or negatively based on a brand’s image. When coconut oil is ‘Parachuted,’ its value rises immediately. This shift is due to the brand name. The name adds visual and verbal qualities to the consumer’s thinking and works as an intervening variable, increasing the value.

For instance, Rolex or Omega add significant value to the goods. A customer unfamiliar with brands such as Rolex or Omega will most likely consider the value of these brands to be the same as the worth of any other watch (a product) because these labels mean nothing to her/him.

In this instance, the value of these brands is unlikely to change because there is no intervening variable between the brands and their valuation.

A brand exists in a consumer’s mind as a complicated network of associations. According to Alexander L. Biel, there are two types of brand associations: hard and soft, and brand sub-images are made up of three elements: the image of the provider, the image of the product, and the image of the user.

Hard associations: Consumer impressions of a brand’s tangible or functional features are examples of hard connections. These include the brand’s physical architecture and performance capabilities, such as economy, quality, dependability, sturdiness, and so on.

An automobile’s hard associations, for example, can include its power, speed, fuel economy, etc.

Soft associations: These are emotional associations. These relationships might be either favourable or unfavourable. For example, a motorcycle might be seen as masculine, challenging, exciting, youthful, etc.

For example, Bajaj Auto has successfully associated its Pulsar motorcycle with masculinity, roughness, youth, and excitement. As a result of bad associations, consumers identify Indian Airlines with dullness, old age, indifference, and incompetence.

1. Image Provider: This relates to the manufacturer’s picture. Consumers also retain a network of associations regarding companies in their minds. Apple computers, for example, evoke associations such as unusual, intriguing, user-friendly, creative, innovative, and relaxed. When people think of Delhi Cloth Mills (DCM), they are likely to think of old, dingy cloth; Rath Vanaspati (vegetable oil): unchangeable and unexciting. An unsuitable corporate image can taint the image of a good product.
2. Image of Product: Products have an image of what they carry and factors such as functional attributes, technology intensity, emotionality, old or modern. Products such as washing detergents, cold cures, mosquito repellents, and so on are typically driven by functional features and rationale. Fashion clothing, fragrances, cold drinks, expensive watches, and various alcoholic beverages, on the other hand, are often associated with emotions and significant significance. As a result, brand image must be shaped within the structural constraints imposed by product image.
3. Image of the User: The brand image creates a mental picture of its users in the minds of consumers. The brand image may imply age, gender, occupation, lifestyle, interests, and personality traits. For example, the picture of Raymond’s suitings is that of a “whole man.” The user image dimension displays the personality of the brand. Beer, coffee, cigarettes, vehicles, credit cards, haircuts, legal services, scotch, sneakers, and toothpaste were determined to be manly in a study conducted by Leon G. Schiffman and Leslie Lazer Kanuk. Bath soaps, shampoo, facial tissues, clothes dryers, washers, and dishwashing detergent were all seen as feminine products.

Brand image management necessitates the establishment of a brand concept. This notion embodies the primary meaning of the company’s chosen brand and is developed from basic consumer needs. The stronger the company serves these needs, the more distinct and powerful the brand image customers hold. These requirements can be divided into three categories.

The term “functional needs” refers to performance-related aspects of a customer’s life. These requirements may relate to resolving existing issues or avoiding future issues.

For example, one may need to get rid of dandruff, receive relief from a cold, ensure one’s health, or protect oneself from robbers. Bisleri (clean and safe water), Pepsodent (fights bacteria that cause dental issues), Fevi Kwick (bonds in a snap), and Disprin are some examples of valuable brands (relief from headaches).

Symbolic needs are learnt needs as a function of socialisation and include desires for esteem, self-improvement, identification with preferred groups, and so on. Raymond (the entire man), Omega (the sign of excellence), Louis Philippe (upper crest), and Ruggers are some instances of symbolic trademarks (be casual).

The term “experiential needs” refers to the sensual enjoyment that results from brand usage experience. People look for enjoyment through their senses, which includes cognitive stimulation and variety.

Mother Dairy (taste delight), Armani (power of smell), Ford Ikon ‘Josh’ (driving experience), Dove (doesn’t dry your skin), Gillette (the best a guy can get), and Fisher Price Toys are examples of experiential businesses (cognitive stimulation).

6.3.4 Types of Brands

There are three types of brands: manufacturer brand (also known as national brand), private brand (also known as distributor, reseller, store, or house brand), and licenced brand.

Manufacturers create maker brands to identify the manufacturer. This form of brand typically necessitates the originator’s engagement in distribution, advertising, and pricing considerations. The brand’s quality is assured and guaranteed, and the promotion mix aims to build the company and brand image and encourage brand loyalty.

The primary distinguishing element of private brands is that they are reseller-initiated branding. The goods do not list the manufacturers. Wholesalers and retailers utilise private brands to create more efficient promotions that improve shop image and increase gross margins.

Shoppers’ Stop is an example of a private brand.

Wholesalers or retailers can purchase specified quality from the manufacturer at an agreed-upon price without disclosing the manufacturer’s identity. Manufacturer brands are dominant in the majority of marketplaces around the world. Supermarkets in industrialised countries such as the United States average more than 19% private brand sales. The practice of private branding is gradually gaining traction in India. This will likely accelerate as more large retail establishments open nationwide in major cities.

Previously, consumers regarded brands in a category in a ladder-like fashion, according to Paul S. Richardson, Alan S. Dick, and Arun K. Jain. The most favoured brand filled the top rung, and the following brands were ordered in declining order of choice. Consumer views of brand parity appear to be replacing the brand ladder.

Licensed brand is a relatively new trend that incorporates trademark licencing. A corporation entering a licencing agreement permits recognised manufacturers to use its trademark for a mutually agreed-upon charge. The royalties could range from 2% to 10% or more of the wholesale revenue. The company that obtains the licence would be responsible for all production and advertising operations and any expenditures incurred if the licenced product fails. The advantages of this partnership include increased revenue, free publicity, new imagery, and trademark protection.

Example: For a short year, P&G licenced its Camay soap brand to Godrej in India.

The negative is that the licencing firm loses control over manufacturing, which can harm the company’s reputation and lead to brand overstretching.

Some firms choose to have both branded and generic items. Generic brands indicate only the product category, such as aluminium foil. Another type of generic brand is when the product’s generic name is provided, and the name of the manufacturing business is only written to comply with legal requirements, such as paracetamol or tetracycline. They don’t have any other distinguishing features. Generic brands are typically less expensive than their branded counterparts. In the pharmaceutical industry, generic brands are pretty widespread.

6.3.5 Branding Strategies

Successful businesses expand over time, and the number of items most businesses handle also expands. These businesses must consider what kind of branding relationships their items will have. Companies’ branding tactics reflect this link. There is no optimum branding plan, and making a decision is difficult. Different companies use different methods, and because there is no optimum plan for all types of items, a corporation may use various branding techniques across its product line.

Companies’ approaches to branding vary. A cursory examination of the Western and Eastern Worlds reveals that companies in the Western World generally employ product-branding tactics (one product, one brand, or many products, many brands).

Example: Three giant and well-known corporations, P&G, HUL, and Xerox, are at the pinnacle of this technique.

Eastern firms, such as those from South Korea and Japan, use a massive branding strategy. “Chips to Ships” is the company’s tagline for all goods.

Hyundai, Samsung, LG, Hitachi, Mitsubishi, Toyota, and more companies are examples.

These two broad approaches represent consumer or market-oriented reasoning or cost-oriented logic.

Companies expand their product mix by stretching existing product lines, introducing new ones, or doing both. In these cases, they employ existing or new brand names or a combination of the company and product brand names. The six branding techniques presented here are generic branding strategies, each with advantages and disadvantages.

Product Branding Strategy

This strategy is motivated by a desire to please the customer. The thinking focuses on consumer perception and information processing, and the corporation believes that giving the product an exclusive place and identity is the most successful way to differentiate its offer in a client’s mind. The target market understands and internalises what the brand represents. Consumers may become confused if many products are marketed under the same brand name.

“A successful branding programme is based on the concept of singularity. In the prospect’s mind, it creates the perception that there is no product on the market quite like your product.”

—From Al Ries and Laura Ries’s 1998 book, The 22 Immutable Laws of Branding.

This strategy focuses solely on marketing the brand to represent its personality, identity, affiliations, and image. The brand does not profit from firm associations or benefits from its name.

Procter & Gamble, for example, is a fervent supporter of product branding strategy in its purest form, as demonstrated in. Hindustan Unilever Ltd. adopts a similar product brand approach but makes some changes by utilising established brand identities in areas other than its product category. In reality, relatively few businesses adhere only to a product branding strategy. Dove, Lux, Rexona, Lifebuoy, Liril, Pears, and other brands are available at HUL. Dove moisturises the skin, Lux is the toilet soap of celebrities, Rexona is a soft soap made with natural oils, Lifebuoy fights germs, Liril is ‘the’ freshness soap, and Pears is the ‘original’ translucent glycerine soap. Notably, P&G and HUL utilise different brand names for products in the same category (Ariel and Tide are detergents; Lux and Liril are soaps).

ITC uses a similar product branding strategy for its tobacco-based products. At the product level, most cigarettes are essentially the same, and what truly matters is the perceived differential among customer groups with solid brand preferences. This is especially noticeable in the higher-end sectors. The essential product does not provide many opportunities for differentiation. This distinction must be established in consumers’ perceptions of a brand. This is the primary reason the ITC has chosen the product differentiation strategy for cigarettes.

For example, ITC’s cigarette brand portfolio includes India Kings, Classic, State Express, Benson & Hedges, Gold Flake Kings, Wills, and Navy Cut. Each brand is distinct and has a separate position. However, in the case of its powerful Wills brand, ITC appears to have diluted its product branding approach by expanding the brand into ready-to-wear clothing.

Product branding has several advantages. It aids in creating an identifiable brand with a distinct position and targeted at a well-defined target segment. The corporation can cover an entire market of various segments by building multiple brands, each targeting a separate group. There is extremely little risk of customer confusion as a result of this. Product branding is highly beneficial when items like detergents or soaps are comparable.

A corporation attempts to reduce risks and unnecessary advertising expenditures by expanding established brands into new areas. When a new product is given a recognised and well-known brand name, people are more inclined to trust the latest product, like when HUL extended the Lux name to debut its shampoo. HUL’s brands Signal (toothpaste) and Blue Seal (peanut butter) both failed, and most people were unaware Hindustan Lever Ltd. P&G’s brands owned them are all standalone in all of its SBUs, allowing the corporation to branch out into many unrelated industries.

The main disadvantage of product branding is the high cost of developing a strong brand in India, which ranges from 5 to 50 crores. These expenses can easily reach hundreds of millions of dollars in industrialised regions. Another disadvantage is that new businesses miss the opportunity to capitalise on the qualities of a well-known company name or its brands.

Line Branding Strategy

The term ‘line branding’ is not the same as ‘product line’ in the context of product mix. Companies frequently have multiple product lines in their product mix. Gillette India, for example, has three product lines: personal care, oral care, and alkaline batteries.

Products under line branding share a common theme. Line brands begin with a single product that conveys a concept, and the brand name is eventually extended to other complementary goods. The fundamental idea remains the same. For example, the Denim brand’s key concept is “the man who doesn’t have to strive too hard.” All products share the notion of the Denim brand name. “The source of dazzling beauty,” according to the Lakmé idea. Lakmé offers a range of other goods that work together, complement each other, and form a whole, such as winter care lotion, cleaning lotion, body lotion, lipsticks, eye cosmetics, and nail enamels, to appeal to a specific target group of consumers. The leading brand serves as the identity for all products in the line branding. Park Avenue is another example of line branding, with various complementary products aimed at the upwardly mobile man.

The line branding approach seeks to meet the supplemental demands of customers that surround the primary need. Lakmé strives to meet the main customer demand, the ‘desire to be beautiful,’ and all items that support this need complement one another. Rather than giving simply one or two fragmented things, the brand addresses overall needs. The corporation focuses solely on promoting the central brand concept, which grows and reinforces all linked things without spending significant additional costs. The corporation can also expand its brand without spending much money on promotion. The disadvantage is that success and ease can often entice a corporation to overextend itself, weakening the brand.

Range Branding Strategy

This method appears to be similar to line branding, but it is not. It is also known as brand expansion. Although the product categories differ, the brand name remains the same. Maggi, for example, is a brand that sells various items such as noodles, sauce, soup, Dosa mixes, and so on.

The range represents the company’s speciality, which is quick food.

Every product in line branding stems from the “product concept.” Lakmé’s fundamental product concept is “the source of radiant beauty,” and all goods revolve around it. Line branding limits brand expansion into items that do not revolve around this core product concept and complement each other. Regarding range branding, it is not the critical product concept but “the area of expertise.” This method allows for expanding products that do not complement one another. For example, a company’s expertise may be microprocessors, but it might build knowledge in other areas, such as software, over time and broaden its brand. Under Ayurvedic Concepts, Himalaya Drug Company offers a variety of Ayurvedic home remedies such as Health Care, Body Care, Skincare, Hair Care, and so on. Deep cleansing lotion, for example, does not match digestive pills, nor does antimicrobial cream complement face wash. The emphasis is on expertise. Himalaya Drug Company’s area of expertise is ‘Ayurvedic medicines,’ it can leverage that experience to expand the brand to goods that do not complement one another.

This indicates that range branding encompasses a wide range of products under a single brand banner. Promotional costs are inexpensive since marketing one brand benefits all items in the line. However, using the same brand name for too many items may result in overstretching, confusing customers, and weakening the brand.

Umbrella Branding Strategy

In general, umbrella branding is preferred by enterprises in the Eastern World, but it is not limited to this region. Non-Eastern corporations that adopt umbrella branding include GE and Philips. Economic reasons motivate the strategy. The corporate name is the brand name for all items in various areas. Investing in one brand is far more cost-effective than investing in several brands. The benefits of brand awareness, associations, and goodwill are transferred. With an ever-increasing number of brands and information overload, standing out is becoming increasingly difficult. Consumers are more likely to notice things they are familiar with. Umbrella brands include, for example, Samsung, Sony, Amul, Nivea, and others.

Umbrella branding appears flawless, but it has significant drawbacks. This method has an essential flaw in that it is not customer—or market-focused. Cost advantages do not convert into higher margins. It is a low-cost method, but it also yields poor profits. According to research, the average profit of top Eastern corporations that use umbrella branding is substantially lower than that of top Western firms.

When markets are considered homogeneous and operate at a higher degree of aggregation, umbrella branding may be appropriate. However, when markets are divided into groups based on buyer wants and preferences, corporations offer specialised need solutions to different segments. This creates a challenging scenario for businesses that use umbrella branding. A specialised brand is more enticing and makes more sense from the consumer’s perspective. This is why automakers produce tiny and mid-sized vehicles such as the Alto, Esteem, Santro, Getz, Palio, and others.

Sharing a shared brand name can be problematic if one category has a problem. This may negatively impact consumer impressions of other products with the same identity. Furthermore, it is tough to expand brands higher (as in Maruti Baleno’s case). The downward stretch in Parker’s instance failed due to Parker’s high-end image. Horizontal stretching is less likely to offer a significant risk.

Double Branding Strategy

This strategy combines umbrella and product branding. The corporate name combines the product brand name to generate double branding. Tata Indica, Bajaj Pulsar, Maruti Suzuki Swift, and so on.

Both names are crucial and give equal weight to the brand’s message. Double branding accomplishes two goals. The product benefits from the company’s brand recognition, competence, and reputation. And Pulsar adds its distinct value: “Definitely masculine.” This is consumer focus, and the brand can communicate something other than what the Bajaj name stands for in customers’ minds, appealing to a new market. The brand name of the product aids in differentiating the offer.

Only the company’s area of speciality and image may limit how far it can go with this branding strategy. Double branding works if the brands align with the company’s specialist domain. The brand may become a burden outside of this sector. Two- and three-wheeler automobiles are categories with higher consistency in the domain of the company’s expertise. However, double branding may not be the best branding technique if the subject of knowledge is inconsistent, such as trucks or computers.

Endorsement Branding Strategy

This is a slight variation on the approach of double branding. The product brand name takes centre stage, while the corporate name takes a back seat. The firm name is written in more minor characters and is placed in the background. The brand primarily aspires to exist on its own. The corporate name is mentioned to identify who owns it just by endorsement of the product brand, such as Godrej Cinthol or Nestlé Kit-Kat.

The corporate name is an integral aspect with equal validity in the case of double branding. Endorsement represents quality assurance by conveying specific associations that promote consumer trust. The goal is not to pass on the company’s domain expertise. Customers, for example, may want Fair Glow or Chocos rather than Godrej’s Fair Glow or Kellogg’s Chocos. By transmitting the firm’s affiliations and image, the company name is a recognisable signal to reassure consumers.

Endorsement branding is similar to product branding, giving the brand more opportunity to establish its identity. However, it is likely to fail when it is attempted in incongruous locations. Nestlé, for example, tried and failed to create Mithai Magic a few years ago.