What is Branding?
Ray (played by Jason Bateman) is explaining to his team about branding. Philip Kotler defines branding as ‘ the process of endowing products and services with the power of a brand.’
Brands create a mental image in the minds of the consumer about the product and service that they offer. This organizes the knowledge in customers’ minds and clarifies the decision-making process.
Ray mentions in the scene that the ‘all-heart symbol’ will be known globally as the symbol for the commitment of change. Brand value needs to be created for brands to be successful. Brands that have achieved success have three main elements namely Genuineness, Authenticity, and Realness.
Amul’s branding strategy included a tagline for their products which was ‘The taste of India’ and the girl in polka dress. This legendary ‘Amul girl’ is their mascot which reminds us of Amul.
Brands are often associated with thoughts, feelings, experiences, beliefs, etc. Amul is seen differently from other brands of butter and milk. It stands out due to its brand strength. Feelings associated with the brand trigger emotional reactions from the consumers. Amul chooses the right brand elements which have a high impact on resonance with the customer.
It started with its first tagine of ‘Utterly Butterly delicious- Amul’. This was done to make the brand likable and memorable. Amul’s strong emphasis on quality and integrity stands out for this brand. Hence, logos, colors, and taglines all are part of brand elements.
Marketers who are trying to build the brand focus on the imagery of the brand that attempts to meet the customer’s psychological and or social needs.
A brand’s value is calculated through its revenues. All associated costs are deducted from the sales and EBIT is calculated. Further, all taxes are deducted. Brand value is the net present value that is discounted by the brand discount rate.