Description
it includes brand relavance ,brand vs product vs company etc
Strategic Brand Management
WELCOME!!
Soni Simpson
“Brand Team” Introductions
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Name ? Personal Demographics
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Who You Work for What You Do All Day Undergraduate Focus What Degree You’re Working on
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Communicate your personal brand essence and call to action In :30 please…
What Courses You’ve Completed/Are In
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Personal Psychographics
– Something Fun/Unique About Yourself – What Motivates You – Why You’re Here Tonight
Course Overview
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What Do You Think You’re Going to Learn this Quarter? We’re going to define and refine our thinking about brands, what they are and how to manage them We’ll build off text, industry experts & studies, guest lecturers, real life experience and class exercises
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Strategic Brand Management
09/10/03 AGENDA TACTICAL Application ? Top Brands •Brand Share ? Brand vs Product vs Company •Brand Management •Brand Management Task Models ? Product Levels •IN CLASS CASE STUDIES ? Brand Definition •Self Positioning ? Brand Relevance •Du Pont Case Study ? Power and Corporate Brands •Due Next Week ? Brand Equity ? Brand Value ? Good To Great Companies/Hedgehog
Strategic Brand Management
The World's 10 Most Valuable Brands - 2002
1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.6 MICROSOFT 64.1 IBM 51.2 GE 41.3 INTEL 30.9 NOKIA 30.0 DISNEY 29.3 McDONALD'S 26.4 MARLBORO 24.2 MERCEDES 21.0
Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.
Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002
Strategic Brand Management
The Top 10 Global Marketers - 2002
1 2 3 4 5 6 7 8 9 10 Ad Spending Outside US (MMs) UNILEVER 2,967 PROCTOR & GAMBLE 2,610 NESTLE 1,560 TOYOTA 1,345 VOLKSWAGON 1,290 COCA-COLA CO. 1,176 FORD MOTOR CO. 1,127 GENERAL MOTORS 1,028 PSA PEUGEOT CITROEN 1,004 FIAT 998
Data: Global Marketers (Ad Age Global, 11/01) Ranks advertisers by estimated total measured advertising outside the US Ad Age Fact Pack; Sept 9, 2002
Strategic Brand Management
The Top 10 Global Marketers
1 2 3 4 5 6 7 8 9 10
- 2002
The World's 10 Most Valuable Brands
1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.6 MICROSOFT 64.1 IBM 51.2 GE 41.3 INTEL 30.9 NOKIA 30.0 DISNEY 29.3 McDONALD'S 26.4 MARLBORO 24.2 MERCEDES 21.0
- 2002
Ad Spending Outside US (MMs)
UNILEVER 2,967 PROCTOR & GAMBLE 2,610 NESTLE 1,560 TOYOTA 1,345 VOLKSWAGON 1,290 COCA-COLA CO. 1,176 FORD MOTOR CO. 1,127 GENERAL MOTORS 1,028 PSA PEUGEOT CITROEN 1,004 FIAT 998
Data: Global Marketers (Ad Age Global, 11/01) Ranks advertisers by estimated total measured advertising outside the US Ad Age Fact Pack; Sept 9, 2002
Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002
Strategic Brand Management
The Top 10 US Mega Brands - 2002
US Ad Spending ($MM) 1 AT&T 996.6 2 Verizon 824.4 3 Chevrolet 780.4 4 Ford 655.9 5 Mc Donald’s 635.1 6 Sprint 620.4 7 Toyota 568.3 8 Sears 511.5 9 Dodge 499.2 10 Chrysler 474.4
Data: Megabrands, AA July 22, 2002 Media Dollars excluding promotion & direct marketing expenses Ad spending for CY2001
Strategic Brand Management
The Top 10 US Advertisers - 2002
US Ad Spending ($BIL) 1 General Motors 3.37 2 P&G 2.54 3 Ford 2.41 4 Pepsi Co 2.21 5 Pfizer 2.19 6 Daimler-Chrysler 1.99 7 AOL Time Warner 1.89 8 Philip Morris 1.82 9 Walt Disney 1.76 10 Johnson & Johnson 1.62
Data: 100 Leading National Advertisers (AA June 24, 2002) Ad spending for CY2001 includes advertising, promotion and direct marketing expenses
Strategic Brand Management
The Top 10 US Mega Brands
- 2002
The Top 10 US Advertisers
- 2002
US Ad Spending ($MM) 1 AT&T 996.6 2 Verizon 824.4 3 Chevrolet 780.4 4 Ford 655.9 5 Mc Donald’s 635.1 6 Sprint 620.4 7 Toyota 568.3 8 Sears 511.5 9 Dodge 499.2 10 Chrysler 474.4
US Ad Spending ($BIL) 1 General Motors 3.37 2 P&G 2.54 3 Ford 2.41 4 Pepsi Co 2.21 5 Pfizer 2.19 6 Daimler-Chrysler 1.99 7 AOL Time Warner 1.89 8 Philip Morris 1.82 9 Walt Disney 1.76 10 Johnson & Johnson 1.62
Data: Megabrands, AA July 22, 2002 Media Dollars excluding promotion & direct marketing expenses Data: 100 Leading National Advertisers (AA June 24, 2002) Ad spending for CY2001 Ad spending for CY2001 includes advertising, promotion and direct marketing expenses
What is a Product?
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Kotler’s Five levels to a product:
Potential Product
Augmented Product
Expected Product
Generic Product
CORE BENEFIT
What is a Product?
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Kotler’s Five levels to a product:
Potential Product
Augmented Product The Fundamental Need or Want that consumers satisfy by consuming the product or service
Expected Product
Generic Product
CORE BENEFIT
What is a Product?
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Kotler’s Five levels to a product:
Potential Product
Augmented Product
Expected Product
Generic Product
CORE BENEFIT
Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.
What is a Product?
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Kotler’s Five levels to a product:
Potential Product
Augmented Product
Expected Product
Attributes and Characteristics that buyers normally expect and agree to when they purchase a product
Generic Product
CORE BENEFIT
What is a Product?
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Kotler’s Five levels to a product:
Potential Product
Augmented Product
Expected Product
Additional product attributes, benefits, or related services that distinguish the product from competitors
Generic Product
CORE BENEFIT
What is a Product?
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Kotler’s Five levels to a product:
Potential Product
Augmented Product
Expected Product
All the augmentations and transformations that a product might ultimately undergo in the future
Generic Product
CORE BENEFIT
What is a Product?
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Kotler’s Five levels to a product:
Potential Product
All the augmentations and transformations that a product might ultimately undergo in the future Additional product attributes, benefits, or related services that distinguish the product from competitors Attributes and Characteristics that buyers normally expect and agree to when they purchase a product
Augmented Product
Expected Product
Generic Product
CORE BENEFIT
Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. The Fundamental Need or Want that consumers satisfy by consuming the product or service
What is a Brand?
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Not simply a product -- anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. ? A product can be:
– – – – – – –
Physical good Service Retail Store Person Organization Place Idea
What is a Brand?
Product = Commodity
A product is a produced item always possessing these characteristics: • Tangibility •Attributes and Features
Brand = “Mind Set”
The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits.
Timothy D. Ennis, Ennis Associates, Inc
What is a Brand?
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Derivation
– Old Norse “brandr” = to burn – branding livestock
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Heritage
– A means to distinguish goods from one producer vs
another.
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AMA (technical definition)
– “Name, term, sign, symbol, or design, or a combination
of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”
What is a Brand?
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AMA defines a brand vs a Brand. ? What does the AMA definition leave out?
What is a Brand?
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Keller’s Definition:
– A product, but one that adds other dimensions that
differentiate it in some way from other products designed to satisfy the same need.
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Rational and tangible Symbolic, emotional and intangible
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The psychological response to a brand can be as important as the physiological response.
What is a Brand?
Product = Commodity
A product is a produced item always possessing these characteristics: • Tangibility •Attributes and Features
Brand = “Mind Set”
The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits.
Timothy D. Ennis, Ennis Associates, Inc
Why Does A Brand Matter?
MANUFACTURERS ? ID to simplify handling or tracing ? Legal protection of unique features ? Signal of quality level to satisfied customers ? Means of endowing products w/unique associations ? Competitive Advantage ? Financial Returns CONSUMERS ? ID Product Source ? Assignment of responsibility to maker ? Risk reducer ? Search cost reducer ? Promise, bond, or pact w/make of product ? Symbolic Device ? Signal of Quality
What is a Brand?
Products don’t exist in a void… ? They are bought because consumers have found something they relate to in them, something which they value ? Brand = Credible Guarantee
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What is a Brand?
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Relative Brand Distinction
– The more distinctive or different a brand is in
the consumers “mind set”, the stronger brand preference becomes. This is critical to keeping competition from the consumer’s consideration.
Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Strong Brand Brand Distinctive Perceived by the Consumer as Unique
Timothy D. Ennis, Ennis Associates, Inc
What is a Brand?
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Relative Brand Distinction
– A brand’s preference is primarily built through
differentiation and relevance – Insulate product from competition – OWN Something
Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Strong Brand Brand Distinctive Perceived by the Consumer as Unique
Timothy D. Ennis, Ennis Associates, Inc
What is a Brand?
Potential Product Kotler’s Five Levels
of A Product
Augmented Product
BRAND DISTINCTION by Timothy D. Ennis
Products (Commodities)
No Difference Except Price
Expected Product
Brand Name
Well Known But Similar
Strong Brand
Brand Distinctive Perceived by the Consumer as Unique
Generic Product
CORE BENEFIT
What is a Brand?
Potential Product Kotler’s Five Levels
of A Product
Augmented Product
BRAND DISTINCTION by Timothy D. Ennis
Products (Commodities)
No Difference Except Price
Expected Product
Brand Name
Well Known But Similar
Strong Brand
Brand Distinctive Perceived by the Consumer as Unique
Generic Product
CORE BENEFIT
OWN Something
What is a Brand?
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What Makes the Best Brands?
– – – – –
Source of company wealth for generations Improves with Age Develop clearly defined personalities Develop affection & loyalty of the public Become parents to sub-brands and brand extension
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Brands = Powerful emotional tools
What Is a Brand?
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Truly understood brands are the things which patrol the boundary between people and the world outside them. ? A brand with an emotional difference can potentially command a premium forever.
Strategic Brand Management
Case Groups Definition: Product Service Corporation Brand
Strategic Brand Management
Corporation vs Service vs Product vs Brand
Alternative Branding Models
Company dominates Brands
American Express (cards) BMW (Motorcycles) Colgate (Total toothpaste) Disney (Films) General Electric (appliances) IBM (Technology) L’Oreal (Cosmetics) Sony (Electronics) Holiday Inn (Crowne Plaza)
Company is equal to Brands
Anheuser Busch = Budweiser Campbell Soup = Godiva Chrsyler = Jeep Estee Lauder = Clinique Kraft = Maxwell House PepsiCo = Mountain Dew Time Warner = Warner Bros 3M = Scotch Tape Marriott = Courtyard
Brands dominate the Company
Skol (Am Bev) Claridge Hotel (Savoy) Crest (P&G) Healthy Choice (Con-Agra) Hidden Valley Ranch
(Clorox)
Kleenix (Kimberly-Clark) Marlboro (Philip Morris) MCA Records (Universal
Studios)
Wranlger (VF Jeans)
Kevin Clancy, Copernicus
POWER BRANDS
The World's 10 Most Valuable Brands - 2002
1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.6 MICROSOFT 64.1 IBM 51.2 GE 41.3 INTEL 30.9 NOKIA 30.0 DISNEY 29.3 McDONALD'S 26.4 MARLBORO 24.2 MERCEDES 21.0
Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.
Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002
POWER BRANDS
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The Successful Brands
– Don’t JUST sell products – Communicate Clear Values – Stretch Across a Number of Products – Attached to Consumers/ NOT Products – Individualized Relationships
POWER BRANDS
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Allow Consumers to clearly identify and specify products which genuinely offer added value. Deep respect for the way products fit into consumer’s lives = “core” of success
Consumer Relationship = Loyalty Social Changes in their favor
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POWER BRANDS
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RIGHT MIX = Organization Excellence + Marketing Sensitivity + Long-term Commitment Brand Values Transcend National Cultures
Emphasize Classlessness, Service, Consistency
– Coke and Mc Donald’s demonstrate most
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POWER BRANDS
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Assessing BRAND POWER
BRAND DEPTH
POWER
BRAND WEIGHT
Interbrand
POWER BRANDS
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Assessing BRAND POWER
The influence or dominance that a brand has over its category or market (more than just market share)
BRAND WEIGHT
Interbrand
POWER BRANDS
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Assessing BRAND POWER
The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category)
Interbrand
POWER BRANDS
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Assessing BRAND POWER
The breadth of franchise that the brand has achieved both in terms of age spread, consumer types and international appeal
Interbrand
POWER BRANDS
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Assessing BRAND POWER
BRAND DEPTH
The degree of commitment that the brand has achieved among its customer base and beyond. The proximity, the intimacy and the loyalty felt for the brand.
Interbrand
POWER BRANDS
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Assessing BRAND POWER
BRAND DEPTH
POWER
BRAND WEIGHT
Interbrand
Power Brand = Master Brand?
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Manifestation of Brand Essence ? A term that USED TO apply only to overarching family brands (Nestle) ? NOW applies to entire companies that rally around a single brand identity
– Focus on entire value proposition rather than a
single product’s functionality
Branding the Corporation
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Brands are not just products but companies:
– Ford – IBM
– Sony
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Why has marketing refocused efforts on the potential of corporate brands?
Branding the Corporation
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Cost of creating and supporting product brands has become prohibitive
– $1Bil to develop a brand across US, EC, FE
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Increasing retailer power ? Traditional brand management not as effective/efficient ? Focus moving up the value chain
Brand Relationship Spectrum
Master Branding the Corporation Enhances Brand… ? Clarity
– Clear brand priorities
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Synergy
– Every exposure generates awareness
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Leverage
– Corporate brand in all Company strategies
Branding the Corporation
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Thus, Benefits of Corporate Branding:
– Every marketing dollar benefits each one of a
company’s division/products – Attracts and inspires employees, stakeholders and business partners – Supplier and Vendor relationships deeper and longer term – Connects up goodwill generated by operations + adds public support/PR in crisis
Branding the Corporation
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Benefits of Corporate Branding:
– New product launches/extensions cheaper and
quicker – Long Term strategic focus – Financial performance and value creation can be enhanced
Branding the Corporation
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What Might be Some of the Difficulties?
– Organizations can be extremely complex – Wide variety of audiences make consistent
proposition communication difficult – Too many businesses: Easier to build a rep & image when one is known for one product or service
Branding the Corporation
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What Might be Some of the Difficulties?
– Led from the top. CEOs are difficult to pin
down for day-to-day brand management – Business Directors often have finance or operations backgrounds – not marketing
Master Brands
Class Examples of Master Brands
Branding
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Different outcomes result from the marketing of a product or service because of its
– brand name – brand element – brand identification
– WHAT ELSE?
Brand Equity
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Common Denominator to interpret the potential effects and trade offs of various strategies and tactics
Common Denominator for assessing the value of a brand
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Brand Equity
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Fundamentally, stresses the importance of the role of the brand in marketing strategies. Marketing effects uniquely attributed to the brand Represents the ADDED VALUE endowed as a result of past marketing investments. Bridge between the past and future possibilities
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Brand Equity
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A set of stored values that consumers associated with a Product/Service. ? These associations add value beyond the basic product functions due to past investments in marketing the Brand.
Timothy D. Ennis, Ennis Associates, Inc
Brand Equity
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How can Brand Equity be created? ? How can Brand Equity be measured? ? How can Brand Equity be used to expand business opportunities?
Brand Equity
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Brand Ingredients:
– – – – – – – – –
Brand Name & heritage Packaging (structure & graphics) & signage Brand symbols, properties and logos Perceived quality, reliability & convenience Defined level of satisfaction Meaningful (premium) price/value relationship Purchase & usage experiences Consumer perceptions, attitude & behaviors Emotional associations with the product/services
Timothy D. Ennis, Ennis Associates, Inc
Brand Equity
BRAND GESTALT
Brand Personality Visual Appearance Country of Origin
Physical Product Attributes Quality Uses
Tangible Benefits
Logo
Brand Customer Relationship
User Imagery
Emotional Benefits
Kevin Clancy, Copernicus modified by Soni Simpson
Brand Equity
The Coca-Cola Brand Is…
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1800’s Heritage Americana Vanilla Coke Authenticity
The Real Thing Red & White Striped Can Sold Everywhere Battles with Pepsi
Brand Equity
The Mc Donald’s Brand Is…
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The Big Mac French Fries Fun For Children
Happy Meals Red and White Restaurants Ronald Mc Donald
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Golden Arches
Value for Your Money
Brand Equity
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A synthesis of all elements, physical, aesthetic, rational AND emotional.
End result =
– appropriate – differentiated
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– relevant
Branding
Brand Imposing One’s Will OLD On SCHOOL THINKING The Consumer
DIPLOMA
Branding
“ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.”
- Kevin Roberts, Saatchi and Saatchi
Branding
Love * Mark
TradeMark
Trust-Mark
POWER BRANDS
•Attached to Consumers Those Brands which are •Deep respect particularly well adapted to for the way products fit into Consumer’s liveswhich the environment and = “Core” of Success thus, survive and flourish.
Brand Equity
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A set of stored values that consumers associated with a Product/Service. ? These associations add value beyond the basic product functions due to past investments in marketing the Brand.
Timothy D. Ennis, Ennis Associates, Inc
Brand Value Breakdown
$US Billions
120 100 80 60 40 20 0
CocaCola J&J P&G Unilever Amazon
INTANGIBLE & Goodwill Net TANGIBLE Assets
Brand Value
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Measurable Financial Value
Legal Systems recognize brand value
– Most countries now recognize intellectual
property is REAL property w/rights of ownership
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Trademarks, Patents, Designs, Copyright
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Consumer Value
Brand Value
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Multiple values for a brand ? Communicated through every medium from shelf to advertising to editorial to word-of-mouth. ? Coca-cola
– – – – – –
Bottle shape Can color Logo type face Taste Youthful messages FORMULA
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Are Brand Values Equal?
Brand Value
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Three Tiers of Brand Value
– Functional Values – Expressive Values
– Central Values
Interbrand; The World’s Greatest Brands.
Brand Value Corresponding to Brand Hierarchy Pyramid
Central
Expressive
Functional
Brand Value
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Functional Values:
– Govern product performance
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Coke refreshes its drinker Volvo gives its driver a safe ride IBM PC provides quick computing Pepsi refreshes Mercedes is as safe as Volvo Apple is as quick as IBM
– Don’t differentiate products
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– Brand Owner’s “bright ideas” can be instantly copied in
every continent
Interbrand; The World’s Greatest Brands.
Brand Value
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Expressive Values:
– Say less about the product & more about the
consumer – Reflect and enhance the consumer’s sense of him/herself – Provide a key source of brand differentiation
? ? ?
Marlboro’s - masculine values Armani’s - status and fashionable values Apple - creative and human values
Interbrand; The World’s Greatest Brands.
Brand Value
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Central Values:
– Most Enduring – Right to the Core of the Consumer’s Belief System
– At their purest = embodied in religious, national or
political persuasions – Comparable power = embody mass movements or cultural trends
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1960’s Coke “I Like to teach the world to sing” Today= Nike “Just Do It”, Richard Branson’s Irreverent Virgin
Interbrand; The World’s Greatest Brands.
Brand Value Corresponding to Brand Hierarchy Pyramid
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Central
Expressive
Functional
Easy to deliver and explain to consumers but also easy to imitate
Interbrand; The World’s Greatest Brands.
Brand Value Corresponding to Brand Hierarchy Pyramid
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Central
Beliefs & Core Values
Expressive
Benefits Features & Attributes
Easy to deliver and explain to consumers but also easy to imitate
Hierarchy : Timothy D. Ennis, Ennis Associates, Inc
Functional
Brand Value: Brand Hierarchy Pyramid
The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL) Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE)
Product/Service features and/or attributes that must be addressed (FUNCTIONAL)
Beliefs & Core Values
Benefits Features & Attributes
Easy to deliver and explain to consumers but also easy to imitate
Brand Value: Brand Hierarchy Pyramid
Mc Cormick: The Taste You Trust
CENTRAL VALUE
Beliefs and Core Values
I take pleasure in how the family enjoys the meals I prepare Brand I Trust / Taste You Trust Part of making food my way Makes a meal/dish an eating pleasure Makes prepared meals taste better Brings out the best in foods Let me adjust to make it my own * Can be used with any dish * Adds flavor, Spicy * For everyday use * Has a lot of products I use * Easy to find when shopping * Largest variety of spices, extracts, dry seasonings, and mixes
EXPRESSIVE
Benefits
FUNCTIONAL Features & Attributes
Brand Hierarchy Pyramid vs Product Level
Potential Product
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Augmented Product
Beliefs & Core Values
Expected Product Benefits
Generic Product
CORE BENEFIT Features & Attributes
Easy to deliver and explain to consumers but also easy to imitate
Brand Value
OK…Values are Essential…BUT Are they enough? What is missing??
Brand Value
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Values Need to be Harnessed & Honed ? The Force
– Brand Builder’s Vision – Big Idea – Conviction
Brand Vision
To build successful brands while your competitors turn their brands into commodities start with a fivestep process
Kevin Clancy, Copernicus, Counter Intuitive
Brand Building
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Kevin Clancy Copernicus’s 5 Step Process
Transformational Strategy Model-Based Marketing Planning Obsessive Implementation
Inspirational Vision
Diagnostic Metrics
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
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Brand Vision LIFTS the Brand above the mundane and functional ? Appeals to Expressive and Central VALUES ? Process creates a bond with the consumer, and hopefully, long-term loyalty
Brand Vision
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The First thing you need to do is create a marketing vision to rally your forces.
“Where there is no vision, the people perish.”
Proverbs 29:18
Brand Vision
“Something supposedly seen by other than normal sight” ? “The ability to see something not actually visible” ? “A force or power of imagination” ? “The experience of having a revelation” ? “Something supernaturally revealed as to a prophet”
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Brand Vision
MUST BE: Exciting, even inspirational, to all of your stakeholders: customers and prospective customers, managers and employees, analysts, reporters – everyone.
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
MUST BE: So big, so bold and so audicious that expressing it – never mind executing it – has a transformational effect. You start to become what you want to be. The dream and the reality fuse.
Kevin Clancy, Copernicus, Counter Intuitive
i.e. YOU NEED A BIG HAIRY VISION
Brand Vision Checklist
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Inspirational & uplifting; it moves people ? Exciting; it gets the blood pumping ? Aspirational; it is barely attainable ? Readable; it is clearly communicated ? Unique/special/different ? Very specific, not general ? Connotes superiority or domination ? Bold and brash; it oozes with confidence ? Causes people to want to invest in/work for the company or buy the company’s products ? Transformational, revolutionary, not evolutionary
Brand Vision
? Let’s
review some published vision statements ? Assign them a college grade from 0 to 100.
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A beverage company “We exist to create value for our shareholders on a long-term basis by building a business that enhances the company’s trademarks.”
Grade = 63
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A beverage experience company “To have bigger brand awareness then Coca-Cola.”
Big Hairy Audacious Goal
David Sutton, Zyman Marketing
Brand Vision
A motorcycle company “Yamaha Wo Tsubusa!”
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A motorcycle company “We will crush, squash, slaughter Yamaha!”
Grade = 85
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A technology company “To eclipse IBM as the #1 technology company in the world.”
Grade = 91
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A gasoline company “We will become the dominant brand in the service station industry and beyond – with the friendliest, fastest, cleanest stations everywhere – one of the most admired brands on the planet.”
Grade = 96
Kevin Clancy, Copernicus, Counter Intuitive
VISION to ASSET LEVERAGE
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Tellis and Golder five factors and rationale as the keys to enduring brand leadership
Vision of the Mass Market
Managerial Persistence
Financial Commitment
Relentless Innovation
Asset Leverage
Gerard Tellis & Peter Golder “First to Market, First to Fail? Real Causes of Enduring Market Lendership” MIT Sloan Management Review, 1/1/96
Brand Building
?
Kevin Clancy Copernicus’s 5 Step Process
Transformational Strategy Model-Based Marketing Planning Obsessive Implementation
Inspirational Vision
Diagnostic Metrics
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
MUST BE: So big, so bold and so audicious that expressing it – never mind executing it – has a transformational effect. You start to become what you want to be. The dream and the reality fuse.
Kevin Clancy, Copernicus, Counter Intuitive
i.e. YOU NEED A BIG HAIRY VISION
What is a Brand?
Potential Product Kotler’s Five Levels
of A Product
Augmented Product
BRAND DISTINCTION by Timothy D. Ennis
Products (Commodities)
No Difference Except Price
Expected Product
Brand Name
Well Known But Similar
Strong Brand
Brand Distinctive Perceived by the Consumer as Unique
Generic Product
CORE BENEFIT
OWN Something
POWER BRANDS
?
Assessing BRAND POWER
BRAND DEPTH
POWER
BRAND WEIGHT
Interbrand
POWER BRANDS
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Assessing BRAND POWER
The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category)
Interbrand
POWER COMPANIES
The World's 10 Most Valuable Brands
1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.6 MICROSOFT 64.1 IBM 51.2 GE 41.3 INTEL 30.9 NOKIA 30.0 DISNEY 29.3 McDONALD'S 26.4 MARLBORO 24.2 MERCEDES 21.0
- 2002
Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002
GOOD – TO –GREAT CASES Results T +15 yr* 1 Abbott 3.98x 2 Circuit City 18.5x 3 Fannie Mae 7.56x 4 Gillette 7.39x 5 Kimberly-Clark 3.42x 6 Kroger 4.17x 7 Nucor 5.16x 8 Philip Morris 7.06x 9 Pitney Bowes 7.16x 10 Walgreens 7.34x 11 Wells Fargo 3.99x
Data: Ratio of cumulative stock retruns relative to the general stock market Jim Collins, Good To Great
Brand Vision
HEDGEHOG Concept ? The Essential Strategic Difference between the Good-to-Great companies:
– Founded their strategies on deep understanding
along three key dimensions – Translated that understanding into a simple, crystalline concept that guided all their efforts
Jim Collins, Good To Great
i.e. YOU NEED A BIG HAIRY VISION
Brand Vision
A Hedgehog Concept: •Is not a goal to be the best, •not a strategy to be the best, •not an intention to be the best What are you deeply Passionate About
•not a plan to be the best
•It is AN UNDERSTANDING of what you CAN be the best at.
What you Can be The Best in the World at What Drives Your Economic Engine
Jim Collins, Good To Great
Brand Vision
A Hedgehog Concept
“Focusing solely on what you can potentially do better than any other organization is the only path to greatness.” …Equally important they know what they cannot be best at. What are you deeply Passionate About
BHAG
What you Can be The Best in the World at
…It is an understanding
Jim Collins, Good To Great
What Drives Your Economic Engine
Brand Vision
A Hedgehog Concept
“Good to Great Companies know they should only do those things that they can get passionate about.” “They asked the right questions.”
Jim Collins, Good To Great
What are you deeply Passionate About
BHAG
What you Can be The Best in the World at
What Drives Your Economic Engine
Brand Vision
BIG HAIRY VISIONS & GOALS • Bad BHAGs set with bravado, What are you deeply Passionate About
• Good BHAGS set with understanding What you Can
be The Best in the World at
BHAG
What Drives Your Economic Engine
Jim Collins, Good To Great
Branding
? How
do we measure one brand’s performance vs another brand?
Branding
?
Brand Share of Market:
– Measuring a brand’s percent of sales in a
market – Can be measured nationally, regionally and at retailers – Data captured via
Scanner data (IRI, Nielsen) ? Industry trends A ? nnual reports
?
Branding
? Measuring
Brand Share of Market
Unit $$ Sales Sales 120 $270 5 15 15 15 3 7 Unit Share 100% 4.2% 12.5% 2.5% $$ Share 100% 5.6% 5.6% 2.6%
National Brand A Brand B Brand C
Branding
? Measuring
Brand Share of Market
Brand Sales = Brand Share Category Sales
Branding
?
Are ALL Brands Created Equally? ? How Does Brand Usage Compare to Category or Competitive Usage? ? Are Brands Equally Strong in Different Regions? ? Measuring Brand Development ? Using Brand Share Metrics
Brand Management
? As
much ART as SCIENCE ? As much SCIENCE as ART ? Achieved by combo of
– Specialist talent – Long term vision – Analytic wizardry
What is Brand Management?
?
Entrepreneurs are building brands (Ben & Jerry’s, Yahoo…) ? Creating a whole new brand
– Riskiest
– Most lucrative
?
Six to Seven of Ten brands launched fail
What is Brand Management?
?
Majority of Brand Builders main task
– take existing brand legacy – adapt brands to suit the requirements of more
sophisticated consumers.
What is Brand Management?
?
Components of Main Brand Builders task
– Embrace the increasing possibilities for communicating
brand values – Acknowledge growing financial pressures on brands to make a return. – Issue: Agencies are communicators..some given responsibility to modify core brand values…brand owners may run into difficulties with this later..
What is Brand Management?
?
Marketing as Brand Management’s responsibility is to build long-term profitable growth for the company’s brands.
What is Brand Management?
?
To accomplish this, marketing must:
– Deliver sustained value to consumers – Enhance brand equity by keeping their brands
relevant, fresh and contemporary – Build consumer loyalty towards their brand
What is a Brand Management?
?
Brand Building Begins By
– Understanding & anticipating the needs and
desires of the consumer – Understanding the key attributes of the product(s)
?
Our Mission is to DISCOVER (rather than Invent) the brand’s CORE VALUES and abide by them.
What is Brand Management?
? Brand
= Primitive God
– If we keep it’s laws – And pay regularly the tributes due
(mainly advertising), fortune will smile on us – otherwise, disaster.
What is Brand Management?
“You have to maintain and replenish a brand over time or it will die”
Brand Vision and Essence
BRAND = Mindset EQUITY = Roots ESSENCE = Brand’s Soul VISION = Brand’s DNA
What is Brand Management?
Functional Excellence in Support of the Brand
Primary Source of Differentiation
• Product/service innovation and communication
Firmwide Leadership in Stewarding the Brand
Primary Source of Differentiation
• Customer experience, in addition to innovation and communication
Purpose of the Brand • Create or reinforce product
distinctiveness
Purpose of the Brand
• Provide clear set of values along which to align all enterprise activities and investments
Corporate Executive Board
What is Brand Management?
Functional Excellence in Support of the Brand
Marketers Responsibilities
• Deduce customer interests from market research data • Develop and refine brand strategy
Firmwide Leadership in Stewarding the Brand
Marketers Responsibilities
• Generate customer insight from all points of customer contact •Develop & Refine brand values, and translate into expectations for each function and role •Influence customer experience across all touch-points, from communication through transaction and service •Leverage brand into new, relevant industries, marketplaces or customer segments
Corporate Executive Board
• Control advertising and promotion planning and execution
•Develop new line extensions
What is Brand Management?
Functional Excellence in Support of the Brand
Marketers Responsibilities
• Defend marketing budget •Base decisions primarily on marketing judgement
Firmwide Leadership in Stewarding the Brand
Marketers Responsibilities
• Champion shareholder value • Base decisions on marketing judgement supported by comprehensive customer database and/or modeling of all key inputs and outputs •Determine success using a dashboard of selected intermediate and bottomline measures
•Determine success through intermediate measures (awareness, recall, brand equity)
Brand Architecture
• Multiple, unrelated brands
Brand Architecture
• Single brand or few, interrelated brands
What is Brand Management?
Functional Excellence in Support of the Brand
Locus of Brand Ownership
• Brand Managers
Firmwide Leadership in Stewarding the Brand
Locus of Brand Ownership
• Chief Marketing Officer
Corporate Executive Board
What is Brand Management?
? Brand
Management is reliant on entire corporation and agency teams ? In Operationalizing the brand, the highest priority is to enlist the support of each member of the team
What is Brand Management?
Innovative Analysts Archeologists Sociologists Brand Champions Politicians General Managers Templar Knights of Equity Evangelists Brand Stewards
Strategic Brand Management
Parallel Path Strategic Growth Model (Soni’s Standard Operating Procedure)
Guiding Focused Strategic Growth
Parallel Path Process
Building Brands NOT Growing Products
PATH 2: We’ve got a Business to Run
$
$
PATH 1: Strategic Plan for Long Term Explosive Growth
Guiding Focused Strategic Growth
Parallel Path Process
Interview ALL key internal players, all vendors, & buyers/brokers
#1
Review & analyze business and consumer trends
Read all research on-hand & obtained
Full Business Immersion
Path 1: Strat Plan for High Growth
Guiding Focused Strategic Growth
Parallel Path Process
#5
SET STRATEGIC PLAN
#4
#3 #2
Full Team Brainstormings
Vision >>Objectives >>Strategies
Brand Essence/Consumer Insight
#1
Full Business Immersion
Path 1: Strat Plan for High Growth
Guiding Focused Strategic Growth
Parallel Path Process
ASK & Listen
Focus on Immediate Business Issues
Ensure All Priorities & Deadlines are met
#1
Work Current Plan
Short Term: Running The Business
Guiding Focused Strategic Growth
Parallel Path Process
#5
ADJUST SHORT TERM PLAN
#4
#3 #2
Full Team Brainstormings
Strat & Tactic Successes/Failures
Facts vs Folklore
#1
Work Current Plan
Path 2: ST Running The Business
Guiding Focused Strategic Growth
Parallel Path Process
$$
#5
SET STRATEGIC PLAN
ADJUST SHORT TERM PLAN
#4
#3 #2
Full Team Brainstorm
Vision >>Objectives >>Strategies Strat & Tactic Successes/Failures
Brand Essence/Consumer Insight
Facts vs Folklore
#1
Full Business Immersion
Path 1: Strat Plan for High Growth
Work Current Plan
Path 2: ST Running The Business
Guiding Focused Strategic Growth
Parallel Path Process
$$
#5
SET STRATEGIC PLAN
ADJUST SHORT TERM PLAN
#4
#3 #2
Full Team Brainstorm
Vision >>Objectives >>Strategies
Brand Essence/Consumer Insight
#1
Full Business Immersion
Path 1: Strat Plan for High Growth
Building Brands Strat & Tactic Successes/Failures NOT Facts vs Folklore Growing Products
Work Current Plan
Path 2: ST Running The Business
Strategic Brand Management
In Class Exercises:
Positioning ?Case Study Product and Brand Hierarchy Exercise
?Self
Strategic Brand Management
SELF POSITIONING ?Develop your own personal positioning statement to share with your group this week. ?Have your group provide you feedback this week. ?Define your target audience in the process: what they need to know and why? What makes you unique and why? ?Have in writing to turn in and share next week.
What is a Product?
?
Kotler’s Five Levels to a Product:
Potential Product
Additional Product attributes, benefits, or related services that distinguish the product from competitors Additional product attributes, benefits, or related services that distinguish the product from competitors Attributes and Characteristics that buyers normally expect and agree to when they purchase a product
Augmented Product
Expected Product
Generic Product
CORE BENEFIT
Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. The Fundamental Need or Want that consumers satisfy by consuming the product or service
PRODUCT LEVEL
LEVEL
BRAND Name/Positioning Potential Product
Television or Juice Drink
Augmented Product
Expected Product Generic Product
Core Benefit
Brand Value: Brand Hierarchy Pyramid
The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL) Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE)
Product/Service features and/or attributes that must be addressed (FUNCTIONAL)
Beliefs & Core Values
Benefits Features & Attributes
Easy to deliver and explain to consumers but also easy to imitate
BRAND HIERARCHY
LEVEL BRAND Name/Positioning Central Beliefs and Core Values Expressive Benefits Functional Features and Attributes Television or Juice Drink
Strategic Brand Management
?Did
your output change with the Brand Hierarchy vs the Product Level approach? ?What about the Consumer? ?How did you create this brand without the Consumer Insights? ?What about your BHV?
doc_759699396.pdf
it includes brand relavance ,brand vs product vs company etc
Strategic Brand Management
WELCOME!!
Soni Simpson
“Brand Team” Introductions
?
Name ? Personal Demographics
– – – –
Who You Work for What You Do All Day Undergraduate Focus What Degree You’re Working on
?
Communicate your personal brand essence and call to action In :30 please…
What Courses You’ve Completed/Are In
?
Personal Psychographics
– Something Fun/Unique About Yourself – What Motivates You – Why You’re Here Tonight
Course Overview
?
What Do You Think You’re Going to Learn this Quarter? We’re going to define and refine our thinking about brands, what they are and how to manage them We’ll build off text, industry experts & studies, guest lecturers, real life experience and class exercises
?
?
Strategic Brand Management
09/10/03 AGENDA TACTICAL Application ? Top Brands •Brand Share ? Brand vs Product vs Company •Brand Management •Brand Management Task Models ? Product Levels •IN CLASS CASE STUDIES ? Brand Definition •Self Positioning ? Brand Relevance •Du Pont Case Study ? Power and Corporate Brands •Due Next Week ? Brand Equity ? Brand Value ? Good To Great Companies/Hedgehog
Strategic Brand Management
The World's 10 Most Valuable Brands - 2002
1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.6 MICROSOFT 64.1 IBM 51.2 GE 41.3 INTEL 30.9 NOKIA 30.0 DISNEY 29.3 McDONALD'S 26.4 MARLBORO 24.2 MERCEDES 21.0
Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.
Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002
Strategic Brand Management
The Top 10 Global Marketers - 2002
1 2 3 4 5 6 7 8 9 10 Ad Spending Outside US (MMs) UNILEVER 2,967 PROCTOR & GAMBLE 2,610 NESTLE 1,560 TOYOTA 1,345 VOLKSWAGON 1,290 COCA-COLA CO. 1,176 FORD MOTOR CO. 1,127 GENERAL MOTORS 1,028 PSA PEUGEOT CITROEN 1,004 FIAT 998
Data: Global Marketers (Ad Age Global, 11/01) Ranks advertisers by estimated total measured advertising outside the US Ad Age Fact Pack; Sept 9, 2002
Strategic Brand Management
The Top 10 Global Marketers
1 2 3 4 5 6 7 8 9 10
- 2002
The World's 10 Most Valuable Brands
1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.6 MICROSOFT 64.1 IBM 51.2 GE 41.3 INTEL 30.9 NOKIA 30.0 DISNEY 29.3 McDONALD'S 26.4 MARLBORO 24.2 MERCEDES 21.0
- 2002
Ad Spending Outside US (MMs)
UNILEVER 2,967 PROCTOR & GAMBLE 2,610 NESTLE 1,560 TOYOTA 1,345 VOLKSWAGON 1,290 COCA-COLA CO. 1,176 FORD MOTOR CO. 1,127 GENERAL MOTORS 1,028 PSA PEUGEOT CITROEN 1,004 FIAT 998
Data: Global Marketers (Ad Age Global, 11/01) Ranks advertisers by estimated total measured advertising outside the US Ad Age Fact Pack; Sept 9, 2002
Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002
Strategic Brand Management
The Top 10 US Mega Brands - 2002
US Ad Spending ($MM) 1 AT&T 996.6 2 Verizon 824.4 3 Chevrolet 780.4 4 Ford 655.9 5 Mc Donald’s 635.1 6 Sprint 620.4 7 Toyota 568.3 8 Sears 511.5 9 Dodge 499.2 10 Chrysler 474.4
Data: Megabrands, AA July 22, 2002 Media Dollars excluding promotion & direct marketing expenses Ad spending for CY2001
Strategic Brand Management
The Top 10 US Advertisers - 2002
US Ad Spending ($BIL) 1 General Motors 3.37 2 P&G 2.54 3 Ford 2.41 4 Pepsi Co 2.21 5 Pfizer 2.19 6 Daimler-Chrysler 1.99 7 AOL Time Warner 1.89 8 Philip Morris 1.82 9 Walt Disney 1.76 10 Johnson & Johnson 1.62
Data: 100 Leading National Advertisers (AA June 24, 2002) Ad spending for CY2001 includes advertising, promotion and direct marketing expenses
Strategic Brand Management
The Top 10 US Mega Brands
- 2002
The Top 10 US Advertisers
- 2002
US Ad Spending ($MM) 1 AT&T 996.6 2 Verizon 824.4 3 Chevrolet 780.4 4 Ford 655.9 5 Mc Donald’s 635.1 6 Sprint 620.4 7 Toyota 568.3 8 Sears 511.5 9 Dodge 499.2 10 Chrysler 474.4
US Ad Spending ($BIL) 1 General Motors 3.37 2 P&G 2.54 3 Ford 2.41 4 Pepsi Co 2.21 5 Pfizer 2.19 6 Daimler-Chrysler 1.99 7 AOL Time Warner 1.89 8 Philip Morris 1.82 9 Walt Disney 1.76 10 Johnson & Johnson 1.62
Data: Megabrands, AA July 22, 2002 Media Dollars excluding promotion & direct marketing expenses Data: 100 Leading National Advertisers (AA June 24, 2002) Ad spending for CY2001 Ad spending for CY2001 includes advertising, promotion and direct marketing expenses
What is a Product?
?
Kotler’s Five levels to a product:
Potential Product
Augmented Product
Expected Product
Generic Product
CORE BENEFIT
What is a Product?
?
Kotler’s Five levels to a product:
Potential Product
Augmented Product The Fundamental Need or Want that consumers satisfy by consuming the product or service
Expected Product
Generic Product
CORE BENEFIT
What is a Product?
?
Kotler’s Five levels to a product:
Potential Product
Augmented Product
Expected Product
Generic Product
CORE BENEFIT
Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.
What is a Product?
?
Kotler’s Five levels to a product:
Potential Product
Augmented Product
Expected Product
Attributes and Characteristics that buyers normally expect and agree to when they purchase a product
Generic Product
CORE BENEFIT
What is a Product?
?
Kotler’s Five levels to a product:
Potential Product
Augmented Product
Expected Product
Additional product attributes, benefits, or related services that distinguish the product from competitors
Generic Product
CORE BENEFIT
What is a Product?
?
Kotler’s Five levels to a product:
Potential Product
Augmented Product
Expected Product
All the augmentations and transformations that a product might ultimately undergo in the future
Generic Product
CORE BENEFIT
What is a Product?
?
Kotler’s Five levels to a product:
Potential Product
All the augmentations and transformations that a product might ultimately undergo in the future Additional product attributes, benefits, or related services that distinguish the product from competitors Attributes and Characteristics that buyers normally expect and agree to when they purchase a product
Augmented Product
Expected Product
Generic Product
CORE BENEFIT
Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. The Fundamental Need or Want that consumers satisfy by consuming the product or service
What is a Brand?
?
Not simply a product -- anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. ? A product can be:
– – – – – – –
Physical good Service Retail Store Person Organization Place Idea
What is a Brand?
Product = Commodity
A product is a produced item always possessing these characteristics: • Tangibility •Attributes and Features
Brand = “Mind Set”
The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits.
Timothy D. Ennis, Ennis Associates, Inc
What is a Brand?
?
Derivation
– Old Norse “brandr” = to burn – branding livestock
?
Heritage
– A means to distinguish goods from one producer vs
another.
?
AMA (technical definition)
– “Name, term, sign, symbol, or design, or a combination
of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”
What is a Brand?
?
AMA defines a brand vs a Brand. ? What does the AMA definition leave out?
What is a Brand?
?
Keller’s Definition:
– A product, but one that adds other dimensions that
differentiate it in some way from other products designed to satisfy the same need.
? ?
Rational and tangible Symbolic, emotional and intangible
?
The psychological response to a brand can be as important as the physiological response.
What is a Brand?
Product = Commodity
A product is a produced item always possessing these characteristics: • Tangibility •Attributes and Features
Brand = “Mind Set”
The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits.
Timothy D. Ennis, Ennis Associates, Inc
Why Does A Brand Matter?
MANUFACTURERS ? ID to simplify handling or tracing ? Legal protection of unique features ? Signal of quality level to satisfied customers ? Means of endowing products w/unique associations ? Competitive Advantage ? Financial Returns CONSUMERS ? ID Product Source ? Assignment of responsibility to maker ? Risk reducer ? Search cost reducer ? Promise, bond, or pact w/make of product ? Symbolic Device ? Signal of Quality
What is a Brand?
Products don’t exist in a void… ? They are bought because consumers have found something they relate to in them, something which they value ? Brand = Credible Guarantee
?
What is a Brand?
?
Relative Brand Distinction
– The more distinctive or different a brand is in
the consumers “mind set”, the stronger brand preference becomes. This is critical to keeping competition from the consumer’s consideration.
Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Strong Brand Brand Distinctive Perceived by the Consumer as Unique
Timothy D. Ennis, Ennis Associates, Inc
What is a Brand?
?
Relative Brand Distinction
– A brand’s preference is primarily built through
differentiation and relevance – Insulate product from competition – OWN Something
Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Strong Brand Brand Distinctive Perceived by the Consumer as Unique
Timothy D. Ennis, Ennis Associates, Inc
What is a Brand?
Potential Product Kotler’s Five Levels
of A Product
Augmented Product
BRAND DISTINCTION by Timothy D. Ennis
Products (Commodities)
No Difference Except Price
Expected Product
Brand Name
Well Known But Similar
Strong Brand
Brand Distinctive Perceived by the Consumer as Unique
Generic Product
CORE BENEFIT
What is a Brand?
Potential Product Kotler’s Five Levels
of A Product
Augmented Product
BRAND DISTINCTION by Timothy D. Ennis
Products (Commodities)
No Difference Except Price
Expected Product
Brand Name
Well Known But Similar
Strong Brand
Brand Distinctive Perceived by the Consumer as Unique
Generic Product
CORE BENEFIT
OWN Something
What is a Brand?
?
What Makes the Best Brands?
– – – – –
Source of company wealth for generations Improves with Age Develop clearly defined personalities Develop affection & loyalty of the public Become parents to sub-brands and brand extension
?
Brands = Powerful emotional tools
What Is a Brand?
?
Truly understood brands are the things which patrol the boundary between people and the world outside them. ? A brand with an emotional difference can potentially command a premium forever.
Strategic Brand Management
Case Groups Definition: Product Service Corporation Brand
Strategic Brand Management
Corporation vs Service vs Product vs Brand
Alternative Branding Models
Company dominates Brands
American Express (cards) BMW (Motorcycles) Colgate (Total toothpaste) Disney (Films) General Electric (appliances) IBM (Technology) L’Oreal (Cosmetics) Sony (Electronics) Holiday Inn (Crowne Plaza)
Company is equal to Brands
Anheuser Busch = Budweiser Campbell Soup = Godiva Chrsyler = Jeep Estee Lauder = Clinique Kraft = Maxwell House PepsiCo = Mountain Dew Time Warner = Warner Bros 3M = Scotch Tape Marriott = Courtyard
Brands dominate the Company
Skol (Am Bev) Claridge Hotel (Savoy) Crest (P&G) Healthy Choice (Con-Agra) Hidden Valley Ranch
(Clorox)
Kleenix (Kimberly-Clark) Marlboro (Philip Morris) MCA Records (Universal
Studios)
Wranlger (VF Jeans)
Kevin Clancy, Copernicus
POWER BRANDS
The World's 10 Most Valuable Brands - 2002
1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.6 MICROSOFT 64.1 IBM 51.2 GE 41.3 INTEL 30.9 NOKIA 30.0 DISNEY 29.3 McDONALD'S 26.4 MARLBORO 24.2 MERCEDES 21.0
Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.
Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002
POWER BRANDS
?
The Successful Brands
– Don’t JUST sell products – Communicate Clear Values – Stretch Across a Number of Products – Attached to Consumers/ NOT Products – Individualized Relationships
POWER BRANDS
?
Allow Consumers to clearly identify and specify products which genuinely offer added value. Deep respect for the way products fit into consumer’s lives = “core” of success
Consumer Relationship = Loyalty Social Changes in their favor
?
? ?
POWER BRANDS
?
RIGHT MIX = Organization Excellence + Marketing Sensitivity + Long-term Commitment Brand Values Transcend National Cultures
Emphasize Classlessness, Service, Consistency
– Coke and Mc Donald’s demonstrate most
?
?
POWER BRANDS
?
Assessing BRAND POWER
BRAND DEPTH
POWER
BRAND WEIGHT
Interbrand
POWER BRANDS
?
Assessing BRAND POWER
The influence or dominance that a brand has over its category or market (more than just market share)
BRAND WEIGHT
Interbrand
POWER BRANDS
?
Assessing BRAND POWER
The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category)
Interbrand
POWER BRANDS
?
Assessing BRAND POWER
The breadth of franchise that the brand has achieved both in terms of age spread, consumer types and international appeal
Interbrand
POWER BRANDS
?
Assessing BRAND POWER
BRAND DEPTH
The degree of commitment that the brand has achieved among its customer base and beyond. The proximity, the intimacy and the loyalty felt for the brand.
Interbrand
POWER BRANDS
?
Assessing BRAND POWER
BRAND DEPTH
POWER
BRAND WEIGHT
Interbrand
Power Brand = Master Brand?
?
Manifestation of Brand Essence ? A term that USED TO apply only to overarching family brands (Nestle) ? NOW applies to entire companies that rally around a single brand identity
– Focus on entire value proposition rather than a
single product’s functionality
Branding the Corporation
?
Brands are not just products but companies:
– Ford – IBM
– Sony
?
Why has marketing refocused efforts on the potential of corporate brands?
Branding the Corporation
?
Cost of creating and supporting product brands has become prohibitive
– $1Bil to develop a brand across US, EC, FE
?
Increasing retailer power ? Traditional brand management not as effective/efficient ? Focus moving up the value chain
Brand Relationship Spectrum
Master Branding the Corporation Enhances Brand… ? Clarity
– Clear brand priorities
?
Synergy
– Every exposure generates awareness
?
Leverage
– Corporate brand in all Company strategies
Branding the Corporation
?
Thus, Benefits of Corporate Branding:
– Every marketing dollar benefits each one of a
company’s division/products – Attracts and inspires employees, stakeholders and business partners – Supplier and Vendor relationships deeper and longer term – Connects up goodwill generated by operations + adds public support/PR in crisis
Branding the Corporation
?
Benefits of Corporate Branding:
– New product launches/extensions cheaper and
quicker – Long Term strategic focus – Financial performance and value creation can be enhanced
Branding the Corporation
?
What Might be Some of the Difficulties?
– Organizations can be extremely complex – Wide variety of audiences make consistent
proposition communication difficult – Too many businesses: Easier to build a rep & image when one is known for one product or service
Branding the Corporation
?
What Might be Some of the Difficulties?
– Led from the top. CEOs are difficult to pin
down for day-to-day brand management – Business Directors often have finance or operations backgrounds – not marketing
Master Brands
Class Examples of Master Brands
Branding
?
Different outcomes result from the marketing of a product or service because of its
– brand name – brand element – brand identification
– WHAT ELSE?
Brand Equity
?
Common Denominator to interpret the potential effects and trade offs of various strategies and tactics
Common Denominator for assessing the value of a brand
?
Brand Equity
?
Fundamentally, stresses the importance of the role of the brand in marketing strategies. Marketing effects uniquely attributed to the brand Represents the ADDED VALUE endowed as a result of past marketing investments. Bridge between the past and future possibilities
? ?
?
Brand Equity
?
A set of stored values that consumers associated with a Product/Service. ? These associations add value beyond the basic product functions due to past investments in marketing the Brand.
Timothy D. Ennis, Ennis Associates, Inc
Brand Equity
?
How can Brand Equity be created? ? How can Brand Equity be measured? ? How can Brand Equity be used to expand business opportunities?
Brand Equity
?
Brand Ingredients:
– – – – – – – – –
Brand Name & heritage Packaging (structure & graphics) & signage Brand symbols, properties and logos Perceived quality, reliability & convenience Defined level of satisfaction Meaningful (premium) price/value relationship Purchase & usage experiences Consumer perceptions, attitude & behaviors Emotional associations with the product/services
Timothy D. Ennis, Ennis Associates, Inc
Brand Equity
BRAND GESTALT
Brand Personality Visual Appearance Country of Origin
Physical Product Attributes Quality Uses
Tangible Benefits
Logo
Brand Customer Relationship
User Imagery
Emotional Benefits
Kevin Clancy, Copernicus modified by Soni Simpson
Brand Equity
The Coca-Cola Brand Is…
? ? ? ?
1800’s Heritage Americana Vanilla Coke Authenticity
The Real Thing Red & White Striped Can Sold Everywhere Battles with Pepsi
Brand Equity
The Mc Donald’s Brand Is…
? ? ?
The Big Mac French Fries Fun For Children
Happy Meals Red and White Restaurants Ronald Mc Donald
?
Golden Arches
Value for Your Money
Brand Equity
?
A synthesis of all elements, physical, aesthetic, rational AND emotional.
End result =
– appropriate – differentiated
?
– relevant
Branding
Brand Imposing One’s Will OLD On SCHOOL THINKING The Consumer
DIPLOMA
Branding
“ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.”
- Kevin Roberts, Saatchi and Saatchi
Branding
Love * Mark
TradeMark
Trust-Mark
POWER BRANDS
•Attached to Consumers Those Brands which are •Deep respect particularly well adapted to for the way products fit into Consumer’s liveswhich the environment and = “Core” of Success thus, survive and flourish.
Brand Equity
?
A set of stored values that consumers associated with a Product/Service. ? These associations add value beyond the basic product functions due to past investments in marketing the Brand.
Timothy D. Ennis, Ennis Associates, Inc
Brand Value Breakdown
$US Billions
120 100 80 60 40 20 0
CocaCola J&J P&G Unilever Amazon
INTANGIBLE & Goodwill Net TANGIBLE Assets
Brand Value
?
?
Measurable Financial Value
Legal Systems recognize brand value
– Most countries now recognize intellectual
property is REAL property w/rights of ownership
?
Trademarks, Patents, Designs, Copyright
?
Consumer Value
Brand Value
?
Multiple values for a brand ? Communicated through every medium from shelf to advertising to editorial to word-of-mouth. ? Coca-cola
– – – – – –
Bottle shape Can color Logo type face Taste Youthful messages FORMULA
?
Are Brand Values Equal?
Brand Value
?
Three Tiers of Brand Value
– Functional Values – Expressive Values
– Central Values
Interbrand; The World’s Greatest Brands.
Brand Value Corresponding to Brand Hierarchy Pyramid
Central
Expressive
Functional
Brand Value
?
Functional Values:
– Govern product performance
? ? ?
Coke refreshes its drinker Volvo gives its driver a safe ride IBM PC provides quick computing Pepsi refreshes Mercedes is as safe as Volvo Apple is as quick as IBM
– Don’t differentiate products
? ? ?
– Brand Owner’s “bright ideas” can be instantly copied in
every continent
Interbrand; The World’s Greatest Brands.
Brand Value
?
Expressive Values:
– Say less about the product & more about the
consumer – Reflect and enhance the consumer’s sense of him/herself – Provide a key source of brand differentiation
? ? ?
Marlboro’s - masculine values Armani’s - status and fashionable values Apple - creative and human values
Interbrand; The World’s Greatest Brands.
Brand Value
?
Central Values:
– Most Enduring – Right to the Core of the Consumer’s Belief System
– At their purest = embodied in religious, national or
political persuasions – Comparable power = embody mass movements or cultural trends
? ?
1960’s Coke “I Like to teach the world to sing” Today= Nike “Just Do It”, Richard Branson’s Irreverent Virgin
Interbrand; The World’s Greatest Brands.
Brand Value Corresponding to Brand Hierarchy Pyramid
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Central
Expressive
Functional
Easy to deliver and explain to consumers but also easy to imitate
Interbrand; The World’s Greatest Brands.
Brand Value Corresponding to Brand Hierarchy Pyramid
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Central
Beliefs & Core Values
Expressive
Benefits Features & Attributes
Easy to deliver and explain to consumers but also easy to imitate
Hierarchy : Timothy D. Ennis, Ennis Associates, Inc
Functional
Brand Value: Brand Hierarchy Pyramid
The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL) Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE)
Product/Service features and/or attributes that must be addressed (FUNCTIONAL)
Beliefs & Core Values
Benefits Features & Attributes
Easy to deliver and explain to consumers but also easy to imitate
Brand Value: Brand Hierarchy Pyramid
Mc Cormick: The Taste You Trust
CENTRAL VALUE
Beliefs and Core Values
I take pleasure in how the family enjoys the meals I prepare Brand I Trust / Taste You Trust Part of making food my way Makes a meal/dish an eating pleasure Makes prepared meals taste better Brings out the best in foods Let me adjust to make it my own * Can be used with any dish * Adds flavor, Spicy * For everyday use * Has a lot of products I use * Easy to find when shopping * Largest variety of spices, extracts, dry seasonings, and mixes
EXPRESSIVE
Benefits
FUNCTIONAL Features & Attributes
Brand Hierarchy Pyramid vs Product Level
Potential Product
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Augmented Product
Beliefs & Core Values
Expected Product Benefits
Generic Product
CORE BENEFIT Features & Attributes
Easy to deliver and explain to consumers but also easy to imitate
Brand Value
OK…Values are Essential…BUT Are they enough? What is missing??
Brand Value
?
Values Need to be Harnessed & Honed ? The Force
– Brand Builder’s Vision – Big Idea – Conviction
Brand Vision
To build successful brands while your competitors turn their brands into commodities start with a fivestep process
Kevin Clancy, Copernicus, Counter Intuitive
Brand Building
?
Kevin Clancy Copernicus’s 5 Step Process
Transformational Strategy Model-Based Marketing Planning Obsessive Implementation
Inspirational Vision
Diagnostic Metrics
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
?
Brand Vision LIFTS the Brand above the mundane and functional ? Appeals to Expressive and Central VALUES ? Process creates a bond with the consumer, and hopefully, long-term loyalty
Brand Vision
?
The First thing you need to do is create a marketing vision to rally your forces.
“Where there is no vision, the people perish.”
Proverbs 29:18
Brand Vision
“Something supposedly seen by other than normal sight” ? “The ability to see something not actually visible” ? “A force or power of imagination” ? “The experience of having a revelation” ? “Something supernaturally revealed as to a prophet”
?
Brand Vision
MUST BE: Exciting, even inspirational, to all of your stakeholders: customers and prospective customers, managers and employees, analysts, reporters – everyone.
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
MUST BE: So big, so bold and so audicious that expressing it – never mind executing it – has a transformational effect. You start to become what you want to be. The dream and the reality fuse.
Kevin Clancy, Copernicus, Counter Intuitive
i.e. YOU NEED A BIG HAIRY VISION
Brand Vision Checklist
?
Inspirational & uplifting; it moves people ? Exciting; it gets the blood pumping ? Aspirational; it is barely attainable ? Readable; it is clearly communicated ? Unique/special/different ? Very specific, not general ? Connotes superiority or domination ? Bold and brash; it oozes with confidence ? Causes people to want to invest in/work for the company or buy the company’s products ? Transformational, revolutionary, not evolutionary
Brand Vision
? Let’s
review some published vision statements ? Assign them a college grade from 0 to 100.
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A beverage company “We exist to create value for our shareholders on a long-term basis by building a business that enhances the company’s trademarks.”
Grade = 63
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A beverage experience company “To have bigger brand awareness then Coca-Cola.”
Big Hairy Audacious Goal
David Sutton, Zyman Marketing
Brand Vision
A motorcycle company “Yamaha Wo Tsubusa!”
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A motorcycle company “We will crush, squash, slaughter Yamaha!”
Grade = 85
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A technology company “To eclipse IBM as the #1 technology company in the world.”
Grade = 91
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A gasoline company “We will become the dominant brand in the service station industry and beyond – with the friendliest, fastest, cleanest stations everywhere – one of the most admired brands on the planet.”
Grade = 96
Kevin Clancy, Copernicus, Counter Intuitive
VISION to ASSET LEVERAGE
?
Tellis and Golder five factors and rationale as the keys to enduring brand leadership
Vision of the Mass Market
Managerial Persistence
Financial Commitment
Relentless Innovation
Asset Leverage
Gerard Tellis & Peter Golder “First to Market, First to Fail? Real Causes of Enduring Market Lendership” MIT Sloan Management Review, 1/1/96
Brand Building
?
Kevin Clancy Copernicus’s 5 Step Process
Transformational Strategy Model-Based Marketing Planning Obsessive Implementation
Inspirational Vision
Diagnostic Metrics
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
MUST BE: So big, so bold and so audicious that expressing it – never mind executing it – has a transformational effect. You start to become what you want to be. The dream and the reality fuse.
Kevin Clancy, Copernicus, Counter Intuitive
i.e. YOU NEED A BIG HAIRY VISION
What is a Brand?
Potential Product Kotler’s Five Levels
of A Product
Augmented Product
BRAND DISTINCTION by Timothy D. Ennis
Products (Commodities)
No Difference Except Price
Expected Product
Brand Name
Well Known But Similar
Strong Brand
Brand Distinctive Perceived by the Consumer as Unique
Generic Product
CORE BENEFIT
OWN Something
POWER BRANDS
?
Assessing BRAND POWER
BRAND DEPTH
POWER
BRAND WEIGHT
Interbrand
POWER BRANDS
?
Assessing BRAND POWER
The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category)
Interbrand
POWER COMPANIES
The World's 10 Most Valuable Brands
1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.6 MICROSOFT 64.1 IBM 51.2 GE 41.3 INTEL 30.9 NOKIA 30.0 DISNEY 29.3 McDONALD'S 26.4 MARLBORO 24.2 MERCEDES 21.0
- 2002
Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002
GOOD – TO –GREAT CASES Results T +15 yr* 1 Abbott 3.98x 2 Circuit City 18.5x 3 Fannie Mae 7.56x 4 Gillette 7.39x 5 Kimberly-Clark 3.42x 6 Kroger 4.17x 7 Nucor 5.16x 8 Philip Morris 7.06x 9 Pitney Bowes 7.16x 10 Walgreens 7.34x 11 Wells Fargo 3.99x
Data: Ratio of cumulative stock retruns relative to the general stock market Jim Collins, Good To Great
Brand Vision
HEDGEHOG Concept ? The Essential Strategic Difference between the Good-to-Great companies:
– Founded their strategies on deep understanding
along three key dimensions – Translated that understanding into a simple, crystalline concept that guided all their efforts
Jim Collins, Good To Great
i.e. YOU NEED A BIG HAIRY VISION
Brand Vision
A Hedgehog Concept: •Is not a goal to be the best, •not a strategy to be the best, •not an intention to be the best What are you deeply Passionate About
•not a plan to be the best
•It is AN UNDERSTANDING of what you CAN be the best at.
What you Can be The Best in the World at What Drives Your Economic Engine
Jim Collins, Good To Great
Brand Vision
A Hedgehog Concept
“Focusing solely on what you can potentially do better than any other organization is the only path to greatness.” …Equally important they know what they cannot be best at. What are you deeply Passionate About
BHAG
What you Can be The Best in the World at
…It is an understanding
Jim Collins, Good To Great
What Drives Your Economic Engine
Brand Vision
A Hedgehog Concept
“Good to Great Companies know they should only do those things that they can get passionate about.” “They asked the right questions.”
Jim Collins, Good To Great
What are you deeply Passionate About
BHAG
What you Can be The Best in the World at
What Drives Your Economic Engine
Brand Vision
BIG HAIRY VISIONS & GOALS • Bad BHAGs set with bravado, What are you deeply Passionate About
• Good BHAGS set with understanding What you Can
be The Best in the World at
BHAG
What Drives Your Economic Engine
Jim Collins, Good To Great
Branding
? How
do we measure one brand’s performance vs another brand?
Branding
?
Brand Share of Market:
– Measuring a brand’s percent of sales in a
market – Can be measured nationally, regionally and at retailers – Data captured via
Scanner data (IRI, Nielsen) ? Industry trends A ? nnual reports
?
Branding
? Measuring
Brand Share of Market
Unit $$ Sales Sales 120 $270 5 15 15 15 3 7 Unit Share 100% 4.2% 12.5% 2.5% $$ Share 100% 5.6% 5.6% 2.6%
National Brand A Brand B Brand C
Branding
? Measuring
Brand Share of Market
Brand Sales = Brand Share Category Sales
Branding
?
Are ALL Brands Created Equally? ? How Does Brand Usage Compare to Category or Competitive Usage? ? Are Brands Equally Strong in Different Regions? ? Measuring Brand Development ? Using Brand Share Metrics
Brand Management
? As
much ART as SCIENCE ? As much SCIENCE as ART ? Achieved by combo of
– Specialist talent – Long term vision – Analytic wizardry
What is Brand Management?
?
Entrepreneurs are building brands (Ben & Jerry’s, Yahoo…) ? Creating a whole new brand
– Riskiest
– Most lucrative
?
Six to Seven of Ten brands launched fail
What is Brand Management?
?
Majority of Brand Builders main task
– take existing brand legacy – adapt brands to suit the requirements of more
sophisticated consumers.
What is Brand Management?
?
Components of Main Brand Builders task
– Embrace the increasing possibilities for communicating
brand values – Acknowledge growing financial pressures on brands to make a return. – Issue: Agencies are communicators..some given responsibility to modify core brand values…brand owners may run into difficulties with this later..
What is Brand Management?
?
Marketing as Brand Management’s responsibility is to build long-term profitable growth for the company’s brands.
What is Brand Management?
?
To accomplish this, marketing must:
– Deliver sustained value to consumers – Enhance brand equity by keeping their brands
relevant, fresh and contemporary – Build consumer loyalty towards their brand
What is a Brand Management?
?
Brand Building Begins By
– Understanding & anticipating the needs and
desires of the consumer – Understanding the key attributes of the product(s)
?
Our Mission is to DISCOVER (rather than Invent) the brand’s CORE VALUES and abide by them.
What is Brand Management?
? Brand
= Primitive God
– If we keep it’s laws – And pay regularly the tributes due
(mainly advertising), fortune will smile on us – otherwise, disaster.
What is Brand Management?
“You have to maintain and replenish a brand over time or it will die”
Brand Vision and Essence
BRAND = Mindset EQUITY = Roots ESSENCE = Brand’s Soul VISION = Brand’s DNA
What is Brand Management?
Functional Excellence in Support of the Brand
Primary Source of Differentiation
• Product/service innovation and communication
Firmwide Leadership in Stewarding the Brand
Primary Source of Differentiation
• Customer experience, in addition to innovation and communication
Purpose of the Brand • Create or reinforce product
distinctiveness
Purpose of the Brand
• Provide clear set of values along which to align all enterprise activities and investments
Corporate Executive Board
What is Brand Management?
Functional Excellence in Support of the Brand
Marketers Responsibilities
• Deduce customer interests from market research data • Develop and refine brand strategy
Firmwide Leadership in Stewarding the Brand
Marketers Responsibilities
• Generate customer insight from all points of customer contact •Develop & Refine brand values, and translate into expectations for each function and role •Influence customer experience across all touch-points, from communication through transaction and service •Leverage brand into new, relevant industries, marketplaces or customer segments
Corporate Executive Board
• Control advertising and promotion planning and execution
•Develop new line extensions
What is Brand Management?
Functional Excellence in Support of the Brand
Marketers Responsibilities
• Defend marketing budget •Base decisions primarily on marketing judgement
Firmwide Leadership in Stewarding the Brand
Marketers Responsibilities
• Champion shareholder value • Base decisions on marketing judgement supported by comprehensive customer database and/or modeling of all key inputs and outputs •Determine success using a dashboard of selected intermediate and bottomline measures
•Determine success through intermediate measures (awareness, recall, brand equity)
Brand Architecture
• Multiple, unrelated brands
Brand Architecture
• Single brand or few, interrelated brands
What is Brand Management?
Functional Excellence in Support of the Brand
Locus of Brand Ownership
• Brand Managers
Firmwide Leadership in Stewarding the Brand
Locus of Brand Ownership
• Chief Marketing Officer
Corporate Executive Board
What is Brand Management?
? Brand
Management is reliant on entire corporation and agency teams ? In Operationalizing the brand, the highest priority is to enlist the support of each member of the team
What is Brand Management?
Innovative Analysts Archeologists Sociologists Brand Champions Politicians General Managers Templar Knights of Equity Evangelists Brand Stewards
Strategic Brand Management
Parallel Path Strategic Growth Model (Soni’s Standard Operating Procedure)
Guiding Focused Strategic Growth
Parallel Path Process
Building Brands NOT Growing Products
PATH 2: We’ve got a Business to Run
$
$
PATH 1: Strategic Plan for Long Term Explosive Growth
Guiding Focused Strategic Growth
Parallel Path Process
Interview ALL key internal players, all vendors, & buyers/brokers
#1
Review & analyze business and consumer trends
Read all research on-hand & obtained
Full Business Immersion
Path 1: Strat Plan for High Growth
Guiding Focused Strategic Growth
Parallel Path Process
#5
SET STRATEGIC PLAN
#4
#3 #2
Full Team Brainstormings
Vision >>Objectives >>Strategies
Brand Essence/Consumer Insight
#1
Full Business Immersion
Path 1: Strat Plan for High Growth
Guiding Focused Strategic Growth
Parallel Path Process
ASK & Listen
Focus on Immediate Business Issues
Ensure All Priorities & Deadlines are met
#1
Work Current Plan
Short Term: Running The Business
Guiding Focused Strategic Growth
Parallel Path Process
#5
ADJUST SHORT TERM PLAN
#4
#3 #2
Full Team Brainstormings
Strat & Tactic Successes/Failures
Facts vs Folklore
#1
Work Current Plan
Path 2: ST Running The Business
Guiding Focused Strategic Growth
Parallel Path Process
$$
#5
SET STRATEGIC PLAN
ADJUST SHORT TERM PLAN
#4
#3 #2
Full Team Brainstorm
Vision >>Objectives >>Strategies Strat & Tactic Successes/Failures
Brand Essence/Consumer Insight
Facts vs Folklore
#1
Full Business Immersion
Path 1: Strat Plan for High Growth
Work Current Plan
Path 2: ST Running The Business
Guiding Focused Strategic Growth
Parallel Path Process
$$
#5
SET STRATEGIC PLAN
ADJUST SHORT TERM PLAN
#4
#3 #2
Full Team Brainstorm
Vision >>Objectives >>Strategies
Brand Essence/Consumer Insight
#1
Full Business Immersion
Path 1: Strat Plan for High Growth
Building Brands Strat & Tactic Successes/Failures NOT Facts vs Folklore Growing Products
Work Current Plan
Path 2: ST Running The Business
Strategic Brand Management
In Class Exercises:
Positioning ?Case Study Product and Brand Hierarchy Exercise
?Self
Strategic Brand Management
SELF POSITIONING ?Develop your own personal positioning statement to share with your group this week. ?Have your group provide you feedback this week. ?Define your target audience in the process: what they need to know and why? What makes you unique and why? ?Have in writing to turn in and share next week.
What is a Product?
?
Kotler’s Five Levels to a Product:
Potential Product
Additional Product attributes, benefits, or related services that distinguish the product from competitors Additional product attributes, benefits, or related services that distinguish the product from competitors Attributes and Characteristics that buyers normally expect and agree to when they purchase a product
Augmented Product
Expected Product
Generic Product
CORE BENEFIT
Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. The Fundamental Need or Want that consumers satisfy by consuming the product or service
PRODUCT LEVEL
LEVEL
BRAND Name/Positioning Potential Product
Television or Juice Drink
Augmented Product
Expected Product Generic Product
Core Benefit
Brand Value: Brand Hierarchy Pyramid
The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL) Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE)
Product/Service features and/or attributes that must be addressed (FUNCTIONAL)
Beliefs & Core Values
Benefits Features & Attributes
Easy to deliver and explain to consumers but also easy to imitate
BRAND HIERARCHY
LEVEL BRAND Name/Positioning Central Beliefs and Core Values Expressive Benefits Functional Features and Attributes Television or Juice Drink
Strategic Brand Management
?Did
your output change with the Brand Hierarchy vs the Product Level approach? ?What about the Consumer? ?How did you create this brand without the Consumer Insights? ?What about your BHV?
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