Brand Value Chain & Brand Equity

Dr. Veena Tewari

What is a brand ?

A traditional scenario of market

Company A
Company B

Product / services

Consumer

Company C

In a traditional market scenario, the company is catering to the consumer. The number of competitors are small. In these markets the companies can come with advanced technologies and other strategies to capture more market share. (The size and power of the players is important.)

What is a brand ?

Company A
Product / services

Company B Company C

Consumer

In complex markets, the differences between companies are not much. The companies can not differentiate much themselves from others on the basis of quality and technology etc. factors as all the companies are competent enough. This scenario explains the need for the differentiation for the companies.

What is a brand ?

Branding is an effort to give a unique identity to the companys products and create emotional associations with consumers. It is a form of marketing. A brand is a set of associations that are linked to a product range, a division, or company. These associations reside in the memory of customers. These associations help customers understand what the brand or company is, why it is potentially relevant to them, how it is different or similar to other products made by the company, and how it is similar or different from competitors products.

Brand Value Chain & Testing



Evaluating the Mayo Clinic

    

600k + in- and out-patients/yr inoutFounded in 1800 by Dr William Woral Mayo & two sons. Pioneered group practice = Two heads are better than one Two extension facilities in 1980s (Scottsdale,Jacksonville) Mayo Graduate School of Medicine one of largest graduate education centers

Brand Value Chain & Testing



Evaluating the Mayo Clinic

 Worldwide

leader in patient care, research and education  Renowned for world class specialty care  Earned a reputation as world class specialty care  Most medical staff participate in research  1950 Nobel Prize winners, Drs Kendall and Hench discovered Cortisone

Brand Value Chain & Testing



Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies
Marketing Program Investment
-Product -Communication -Trade -Employee -Other

Value Stages

Customer Mindset
-Awareness -Associations -Attitudes -Attachment -Activity

Market
Performance

Shareholder

Value
-Stock Price --Market Capitalization

-Price Premiums -Price Elasticities -Market Share -Expansion Success -Cost Structures -Profitability

Brand Value Chain & Testing



Evaluating the Mayo Clinic 96 Brand Equity Study

 Awareness

84.3%, 90+% among 45+  Specialty ranking Top ranked at 15.4% (next at 5.3%) ..go anywhere in US for serious condition which required highly specialized care..  Strongest Brand Associations 1) Scientific Research, 2) Cancer Treatment, 3) Cardiac Care

Brand Value Chain & Testing



Evaluating the Mayo Clinic 96 Brand Equity Study



Associations (Thoughts & Feelings)

   

Integrity (longevity, heritage, wisdom of staff, trust in institution), Leadership (modernity, premium quality, international prestige) Professionalism (staff held high standards, were intellectually sophisticated and efficient) Commitment to health & healing (reputation for medical discoveries, preventative medicine, tangible results)

No Negative Associations

Brand Value Chain & Testing



Evaluating the Mayo Clinic 96 Brand Equity Study

 Product

Perception ISSUE

 Outside

Midwest perception of only for rich/famous  Known for Tertiary Care (Not primary family care)  Thus, not like me

Brand Value Chain & Testing



Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies
Marketing Program Investment Customer Mindset Market
Performance Shareholder

Value Stages

Value

Multipliers

Program Quality
-Clarity -Relevance -Distinctiveness -Consistency

Marketplace Conditions
-Competitive reactions -Channel Support -Customer size & Profile

Investor Sentiment
-Market Dynamics -Growth Panel -Risk Profile -Brand Contributions

Brand Value Chain & Testing



Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies
Marketing Program Investment
-Product -Communication -Trade -Employee -Other

Value Stages

Customer Mindset
-Awareness -Associations -Attitudes -Attachment -Activity

Market
Performance

Shareholder

Value
-Stock Price --Market Capitalization

-Price Premiums -Price Elasticities -Market Share -Expansion Success -Cost Structures -Profitability

Brand Value Chain & Testing



Evaluating the Mayo Clinic 96 Brand Equity Study

 Communication
 Word

of Mouth is influential in selecting specialty

care  1/3 know at least one Mayo patient

Brand Value Chain & Testing



Evaluating the Mayo Clinic 96 Brand Equity Study CONCLUSIONS

Mayo s Brand Equity is Powerful and Precious  As perceived by patients and consumers, Mayo s Essence:

  

Excellence The best medical, personal and technical expertise in patient care and education Care Compassionate patient care and education resulting in physical, mental and emotional well-being wellCooperation Care and education in cooperative and inclusive relationships among colleagues and with the patient, the patient, the patient s family and consumers Enlightenment (Wisdom) Commitment to pioneering knowledge, insight, and truth through research and education

Brand Value Chain & Testing



Evaluating the Mayo Clinic 96 Brand Equity Study CONCLUSIONS

 Mayo s

Brand Equity is Powerful and Precious  By living out these standards fully and consistently, the Mayo clinic had engendered in patients and consumers a sense of confidence, safety, hope and serenity

Brand Development
Consumer Driven Marketing Cycle Succeed And Map the
Improve Assess Performance Marketspace Select Most Valuable Customers

Actions
Execute the Tactical Plan

Strategies
Choose a Winning Positioning Brand saturation High Cost

Tactics
Define Performance Measures

Build Operational Capabilities

Create the Tactical Plan

Mark Kerback, Kerback & Company

Brand Value Chain & Testing



Evaluating the Mayo Clinic 96 Brand Equity Study CONCLUSIONS

A Satisfied national patient base is VITAL to maintaining preference  Vital to developing guidelines that protected the brand  1999 created Office of Brand Management

   

Responsible for the protection & enhancement of the Mayo Clinic brand (+ monitoring) Developing Brand Management Guidelines & a Positioning statement Implementing a Branding System (include education) Build awareness of Brand Management within the organization Research extension opportunities & risks

Brand Value Chain & Testing



Evaluating the Mayo Clinic 96 Brand Equity Study CONCLUSIONS

 Example
 Each


of Brand Management Guidelines:

new/existing Mayo Clinic branded product, service or business relationship meets 4 criteria:
Using name must be owned by Mayo or under full control  Use to solely assure success of service/product not appropriate  Not to be used in a manner that trivalizes the name/institution  Not shared or sold

Brand Value Chain & Testing



Get to the Consumer Insight/Core Value by

 Laddering

up to it  Keep asking WHY , WHY , WHY

Is Mayo Resonating with Consumers Central Beliefs/Core Values?  What Consumer Insight might they center their equity on?


Strategic Brand Management

New Brand Development Project (due WK10)  Work in Four Groups of 2 and select from product categories provided  Develop a new brand marketing plan in an existing category (Use framework attached)  Develop the key insight, concept & positioning  Ensure the following are ALSO included:
     

Your VISION Launch Rationale Business analysis (Competitive and market analysis, SWOT etc) Target audience, Key Competitive insights and Core Values (use CBBE Pyramid) Projected share and financials (supported, P&L examples to be provided) Proposed Marketing Objectives, Strategies and Tactics

Strategic Brand Management

RECOMMENDED TIMETABLE  Select groups and categories Oct18th (data up Oct 20th); assign group tasks; conduct research searches  Oct 25th: Out line marketing plan to share with the group;  Nov 1st: Having reviewed available data; hypothesize financials, consumer insights, positioning and concepts (can turn in roughs to prof for feedback)  Nov 8th: Draft marketing plan deck and begin conversion to power point presentation  Nov 15th: Turn in completed plan and conduct presentations. FINISHED PRODUCT:  One 10-15 Minute presentation (docked a grade if over 15 10minutes!!)  One marketing plan document (main text to be NO MORE than 5 pages.. Appendix with charts, graphs, data and research encouraged)  Visuals encouraged.

Your Marketing Plan



Purpose
     

Define your core objectives, strategies and tactics in concise summary Management selling tool for brand investment Document and sell or acknowledge results Provide solid, focused direction to corporation and brand support Define Brand evaluation objectives Live Working Document

Measuring Brand Equity

Objective:  To guarantee assets/liabilities are nurtured and managed (loyalty, awareness, perceived quality, propriety brand assets)  Develop Focused Master Plan  Create Long term Strategic Orientation

Brand Marketing Process

Measure Brand Equity
Financial Health

Analysis & Long Term Strategy

Marketing Mix

Business Analysis
SWOTs

Market & Competitive Trends Consumer Insights

Strategic Implications & Strategy Development

Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role

Establish Positioning Concept

Three Year and ANNUAL Objectives

Annual Plan & Execution

What do I want to Accomplish Objectives Should be S.M.A.R.T

ANNUAL STRATEGIES
How will the objectives be achieved?

Marketing Plan Execution

Market Research Consumer & Retailer Promo Public Relations Physical Product Package Pricing Functional Objectives & Strategies And Tactical Plan

Advertising Media

Brand Marketing Process

Measure Brand Equity Analysis & Long Term Strategy Analysis & Long Term Strategy
Financial Health Market & Competitive Trends

Marketing Mix

Business Analysis

Consumer Insights

SWOTs

Strategic Implications & Strategy Development

Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role

Establish Positioning Concept

Brand Marketing Process

Three Year and ANNUAL Objectives
What do I want to Accomplish Objectives Should be S.M.A.R.T

Establish Positioning Concept

Annual Plan & Execution

ANNUAL STRATEGIES
How will the objectives be achieved?

Marketing Plan Execution

Market Research Consumer & Retailer Promo Public Relations Physical Product Package Functional Objectives & Strategies And Tactical Plan

Pricing

Advertising Media

Brand Marketing Process

Measure Brand Equity
Financial Health

Analysis & Long Term Strategy

Marketing Mix

Business Analysis
SWOTs

Market & Competitive Trends Consumer Insights

Strategic Implications & Strategy Development

Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role

Establish Positioning Concept

Three Year and ANNUAL Objectives

Annual Plan & Execution

What do I want to Accomplish Objectives Should be S.M.A.R.T

ANNUAL STRATEGIES
How will the objectives be achieved?

Marketing Plan Execution

Market Research Consumer & Retailer Promo Public Relations Physical Product Package Pricing Functional Objectives & Strategies And Tactical Plan

Advertising Media

Measuring Brand Equity

Market Trends Checklist

Market Conditions
Household Pentration Seasonality Regionality (CDI/BDI)

Retail Conditions
Volume & Share
Industry definition & served market Category Size & growth rates Category Segmentation, trends, importance to category Share of market by brand & by segment
Channels of Distribution Product Sourcing/availability Importance of the category to the retailer Retailer focus on private label Retailer influence over category marketing activity

Consumer Conditions
Substitute products Changes in tastes/attitudes/needs

Government Conditions Regulations & Reqs. Legislative issues

Measuring Brand Equity



Assessing Competitive Trends

Competitor Identification Key direct competitors Competitive Scope: Regional/National/Global

Advantage
Competitive Strategy
Overall mission/priorities Target Audience Brand Turf/Positioning Class of Trade (COT) importance

Brand Value Chain & Testing



Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies
Marketing Program Investment
-Product -Communication -Trade -Employee -Other

Value Stages

Customer Mindset
-Awareness -Associations -Attitudes -Attachment -Activity

Market
Performance

Shareholder

Value
-Stock Price -Market Capitalization

-Price Premiums -Price Elasticities -Market Share -Expansion Success -Cost Structures -Profitability

Brand Value Chain & Testing



Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies
Marketing Program Investment Customer Mindset Market
Performance Shareholder

Value Stages

Value

Multipliers

Program Quality
-Clarity -Relevance -Distinctiveness -Consistency

Marketplace Conditions
-Competitive reactions -Channel Support -Customer size & Profile

Investor Sentiment
-Market Dynamics -Growth Panel -Risk Profile -Brand Contributions

Measuring Brand Equity

SWOT  Purpose: to guide thinking and help distill the key issues and opportunities facing the Brand AND the category  Can be done in competitive analysis STRENGTH WEAKNESS
Inherent source of competitive advantage within the Brand (of genuine relevance to the consumer) Inherent cause of competitive disadvantage within the Brand (of genuine importance to consumer)

INTERNAL to the brand Caused by the inherent nature of the Brand or our management of it

Measuring Brand Equity

SWOT  Purpose: to guide thinking and help distill the key issues and opportunities facing the Brand AND the category  Can be done in competitive analysis
EXTERNAL to the brand Markets, competitors, retail, social trends etc

OPPORTUNITY
Unsatisfied or poorly satisfied need in the marketplace which our company can perform profitability

THREAT
Potential problem from external source which could undermine our Brands competitive position if not addressed.

ConsumerConsumer-Based Brand Equity Pyramid

THIS is Where the Insight Lives

ConsumerBrand Resonance Consumer Judgments

4 Intense, Active Loyalty

Consumer Feelings Brand Imagery

3 Positive Accessible Reactions

Brand Performance

2 Points of Difference

Brand Salience

1 Deep Broad Brand Awareness

ConsumerConsumer-Based Brand Equity Pyramid

Loyalty Attachment Community Engagement Quality Credibility Consideration Superiority
Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency, & Empathy Style and Design; Price

Resonance

4 Brand Relationships (WHAT About You AND ME?)

Judgments

Warmth, Fun Excitement, Security, Social Approval, Self-Respect

Feelings
3 Brand Response (WHAT About You?)

Performance

User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences

Imagery
2 Brand Meaning (WHAT Are You?)

Category Identification Needs Satisfied

1 Brand Identity (WHO Are You?)

Salience

Insight to Positioning
State the thought you wish to implant in your target s mind:  TO (core target audience), (Brand Name), Power Positioning  IS THE (frame of reference) LINKS to Consumer Insight  THAT (owned benefit)  BECAUSE (support or reason to believe)

Introducing (Brand Name) Succinct insight driven benefits (benefit statement)

Consumer Insight statement (AHA not fact).  Introducing New Brand. What it does (relevant core benefit to consumer). Reason to believe (how/why it does what it does).
 

Reprise of positioning in closing tag.

Your Marketing Plan



Fundamental Statement of Purpose

 What

do I want to do (grow X% to $$)  Objectives must be SMART

 Specific  Measurable  Appropriate  Realistic  Timebound

 Long

Term and Short term

Brand Development
Consumer Driven Marketing Cycle
Consumer Insight: Singularly focused need, desire or want Strategies: Fact Based choices on who, how and why Tactics: Activities/capabilities what, where and when Actions: Execution, feedback, assessment, and improvement

Actions

Strategies

Brand Tactics saturation High Cost

Mark Kerback, Kerback & Company

YOUR MARKETING PLAN

 

What is your Big Inspiring Vision? How will your consumer insight translate across ALL elements of your plan?
Positioning  Brand Essence  Strategies and Tactics


  

WHO is your target REALLY (pscyh, demo) In your SWOT: What is going on competitively and in the Market Place? WHY should I invest in your launch????????