62  Brand Management

62.1 What is a Brand?

A brand is a name, term, sign, symbol, design or combination of these intended to identify the goods or services of a seller and to differentiate them from competitors (American Marketing Association). A brand is far more than a logo — it is the promise a firm makes to its customers and the meaning customers attach to that promise. Brand management is the process of building, maintaining and protecting brand equity over time.

David Aaker — the modern father of brand management — defines a brand as “a distinguishing name and/or symbol intended to identify the goods or services of either one seller or a group of sellers, and to differentiate those goods or services from those of competitors” (aaker1996?). Kevin Lane Keller’s Strategic Brand Management extends the definition to include intangible assets and associations in customers’ minds (keller2013?).

TipThree Working Definitions
Author Definition What it foregrounds
AMA “A name, term, sign, symbol, design — or combination — that identifies and differentiates.” Identification
David Aaker “A distinguishing name/symbol that identifies and differentiates a seller’s offering.” Differentiation
Kevin Keller “A brand is a set of mental associations held by the consumer about the offering.” Mind associations

62.2 Brand Equity — Aaker and Keller

Brand equity is the value a brand adds to a product over and above its functional benefits (aaker1996?). Two foundational frameworks dominate.

62.2.1 Aaker’s Five Dimensions of Brand Equity

TipAaker’s Five Dimensions
Dimension What it captures
Brand awareness Recognition and recall
Perceived quality Customer judgement of overall quality
Brand loyalty Repeat purchase, low price sensitivity
Brand associations Mental links — attributes, benefits, attitudes
Other proprietary assets Patents, trademarks, channel relationships

62.2.2 Keller’s CBBE Pyramid

Kevin Keller’s Customer-Based Brand Equity (CBBE) pyramid is a four-stage hierarchy (keller2013?):

TipKeller’s CBBE Pyramid
Stage Question Building blocks
Identity Who are you? Brand salience
Meaning What are you? Performance + Imagery
Response What about you? (How does the consumer feel?) Judgements + Feelings
Resonance What about you and me? (Loyalty, attachment) Brand resonance 

flowchart TB
  R[Resonance<br/>Loyalty, attachment, community] --> J[Judgements + Feelings<br/>Response]
  J --> P[Performance + Imagery<br/>Meaning]
  P --> S[Brand Salience<br/>Identity]
  style R fill:#FCE4EC,stroke:#AD1457
  style J fill:#FFF8E1,stroke:#F9A825
  style P fill:#E3F2FD,stroke:#1565C0
  style S fill:#E8F5E9,stroke:#2E7D32

62.3 Brand Identity, Image and Personality

Three closely-related concepts:

TipBrand Identity, Image, Personality
Concept What it is Source
Brand Identity What the brand intends to be — its core values and promise Sender (firm)
Brand Image What the brand actually means to the customer Receiver (consumer)
Brand Personality Human-like traits attributed to the brand Aaker’s Big Five

62.3.1 Aaker’s Brand Personality (Big Five)

TipJennifer Aaker’s Brand Personality Dimensions
Dimension Hallmark Example
Sincerity Honest, wholesome, cheerful Hallmark, Tata Salt
Excitement Daring, spirited, imaginative Red Bull, Nike
Competence Reliable, intelligent, successful IBM, Microsoft
Sophistication Upper-class, charming Mercedes, Tiffany
Ruggedness Outdoorsy, tough Royal Enfield, Marlboro

62.4 Brand Strategy Decisions

TipMajor Branding Decisions
Decision Options
Branding strategy Family / Umbrella · Individual · Combination · Co-branding · Private label
Brand sponsorship Manufacturer · Distributor · Licensed · Private
Brand naming Descriptive · Suggestive · Coined · Acronym
Brand extension Line extension · Category extension
Brand portfolio strategy Single brand · Multi-brand · House of brands · Branded house

62.4.1 Brand Architecture

David Aaker’s brand-architecture continuum distinguishes:

TipAaker’s Brand-Architecture Continuum
Approach What it does Example
Branded House Master brand carries all products Google (Search, Maps, Drive)
Sub-brands Master brand + sub-brand Tata (Tata Motors, Tata Consultancy)
Endorsed brands Independent brand endorsed by master Marriott Courtyard
House of Brands Independent brands; master invisible Procter & Gamble (Tide, Pampers, Gillette)

62.5 Brand Extension

TipTwo Types of Brand Extension
Type What it does Example
Line extension New variant in same product category Coke Zero, Coke Diet
Category extension Extend brand into a new category Virgin (airline → music → mobile)

Risks of extension: dilution, cannibalisation, and the halo effect failure (Pierre Cardin’s over-extension is the textbook cautionary tale). Successful extensions leverage brand-fit and category-fit.

62.6 Brand Repositioning, Revitalisation and Decline

Brands age. Strategies for renewal include repositioning (Mountain Dew shifting from ‘rural’ to ‘extreme sports’), brand revitalisation (Tata Tea’s Jaago Re campaign), and brand pruning (cutting weak brands from the portfolio).

62.7 Brand Valuation

Brands appear on the balance sheet as intangible assets when acquired. Three classical approaches to valuing a brand:

TipThree Approaches to Brand Valuation
Approach What it does
Cost-based Cost of building or replacing the brand
Market-based What comparable brands sell for
Income-based DCF of the additional cash flows the brand generates over an unbranded counterpart

The income-based Interbrand methodology is the standard for the BrandZ and Best Global Brands rankings.

62.8 Branding in India

TipIndian Branding Frameworks and Statutes
Source Concerned with
Trade Marks Act, 1999 Brand registration and protection
Geographical Indications of Goods Act, 1999 Darjeeling Tea, Banarasi Sari, Tirupati Laddu
Copyright Act, 1957 Brand creative work
Patents Act, 1970 Functional protection
Designs Act, 2000 Aesthetic design

62.9 Practice Questions

Q 01 CBBE Medium

In Keller's CBBE pyramid, the highest stage is:

  • ASalience
  • BPerformance
  • CJudgements
  • DResonance
View solution
Correct Option: D
Order: Identity (Salience) → Meaning (Performance + Imagery) → Response (Judgements + Feelings) → Resonance.
Q 02 Personality Medium

Jennifer Aaker's brand-personality dimension that captures "outdoorsy, tough" — best illustrated by Royal Enfield — is:

  • ASincerity
  • BExcitement
  • CCompetence
  • DRuggedness
View solution
Correct Option: D
Five dimensions: Sincerity, Excitement, Competence, Sophistication, Ruggedness.
Q 03 Architecture Medium

Procter & Gamble's portfolio with brands like Tide, Pampers and Gillette best illustrates a:

  • ABranded house
  • BHouse of brands
  • CEndorsed brands
  • DSub-brands
View solution
Correct Option: B
House of Brands — independent brands, parent invisible. Branded House is the opposite (Google: Search, Maps, Drive).
Q 04 Extension Medium

Coca-Cola launching Coke Zero is a:

  • ACategory extension
  • BLine extension
  • CBrand revitalisation
  • DCo-branding
View solution
Correct Option: B
Same product category (cola), new variant = line extension. Category extension = into a new category (Virgin from airline to mobile).
Q 05 Identity vs Image Medium

"What the brand intends to be" is the brand's:

  • AIdentity
  • BImage
  • CEquity
  • DArchitecture
View solution
Correct Option: A
Identity = sender's intention. Image = what receivers perceive.
Q 06 Valuation Medium

The Interbrand methodology for ranking the world's most valuable brands is primarily:

  • ACost-based
  • BMarket-based
  • CIncome-based
  • DAsset-based
View solution
Correct Option: C
Interbrand uses an income-based approach — DCF of brand-attributable cash flows.
Q 07 Aaker Easy

Aaker's five dimensions of brand equity include:

  • AAwareness, Quality, Loyalty, Associations, Proprietary Assets
  • BAwareness, Profit, Sales, Volume, Margin
  • CIdentity, Image, Personality, Equity, Position
  • DVision, Mission, Values, Culture, People
View solution
Correct Option: A
Aaker's five: Awareness · Perceived Quality · Loyalty · Associations · Other Proprietary Assets.
Q 08 GI Medium

Darjeeling Tea, Banarasi Sari and Tirupati Laddu are protected in India under:

  • ATrade Marks Act, 1999
  • BGeographical Indications of Goods Act, 1999
  • CCopyright Act, 1957
  • DPatents Act, 1970
View solution
Correct Option: B
The Geographical Indications of Goods (Registration and Protection) Act, 1999 protects products tied to a specific geographical origin.
ImportantQuick recall
  • Brand = name/sign/symbol that identifies and differentiates. Standard texts: Aaker, Keller.
  • Aaker’s 5 dimensions of brand equity: Awareness · Perceived Quality · Loyalty · Associations · Other Proprietary Assets.
  • Keller’s CBBE pyramid: Identity (salience) → Meaning (performance + imagery) → Response (judgements + feelings) → Resonance.
  • Brand identity (intended) vs image (perceived). Jennifer Aaker’s brand-personality five: Sincerity · Excitement · Competence · Sophistication · Ruggedness.
  • Brand architecture continuum: Branded House → Sub-brands → Endorsed → House of Brands.
  • Brand extensions: line (same category) vs category (new category).
  • Brand valuation: cost-based · market-based · income-based (Interbrand).
  • India: Trade Marks Act 1999, GI Act 1999, Copyright Act 1957, Patents Act 1970, Designs Act 2000.