(PPT) Strategic Brand Management

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 Youre Working on
Communicate your personal brand essence and call to action In :30 please
What Courses Youve Completed/Are In
Personal Psychographics
Something Fun/Unique About Yourself What Motivates You Why Youre Here Tonight
Course Overview
What Do You Think Youre Going to Learn this Quarter? Were going to define and refine our thinking about brands, what they are and how to manage them Well build off text, industry experts & studies, guest lecturers, real life experience and class exercises

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

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
Interbrands Assessment is of Brand Power the fullest possible view of each brands strengths and potential as a marketing and financial asset.
Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002

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

The Top 10 Global Marketers
1 2 3 4 5 6 7 8 9 10
- 2002
The World's 10 Most Valuable Brands

- 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

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 Donalds 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

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

The Top 10 US Mega Brands
- 2002
The Top 10 US Advertisers
- 2002
US Ad Spending ($MM) 1 AT&T 996.6 2 Verizon 824.4 3 Chevrolet 780.4 4 Ford 655.9 5 Mc Donalds 635.1 6 Sprint 620.4 7 Toyota 568.3 8 Sears 511.5 9 Dodge 499.2 10 Chrysler 474.4
US Ad Spending ($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?
Kotlers Five levels to a product:
Potential Product
Augmented Product
Expected Product
Generic Product
CORE BENEFIT
What is 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?
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?
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?
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?
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?
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?
Kellers 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.
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 dont 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 consumers consideration.
Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Strong Brand Brand Distinctive Perceived by the Consumer as Unique
What is a Brand?
Relative Brand Distinction

A brands 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
What is a Brand?
Potential Product Kotlers 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?
of A Product
Augmented Product

Expected Product
Brand Name
Strong Brand
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.

Case Groups Definition: Product Service Corporation Brand
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) LOreal (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
Interbrands Assessment is of Brand Power the fullest possible view of each brands strengths and potential as a marketing and financial asset.
POWER BRANDS
The Successful Brands

Dont 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 consumers 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 Donalds demonstrate most
POWER BRANDS
Assessing BRAND POWER

BRAND DEPTH
POWER
BRAND WEIGHT
Interbrand
POWER BRANDS
The influence or dominance that a brand has over its category or market (more than just market share)
BRAND WEIGHT
Interbrand
POWER BRANDS
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
The breadth of franchise that the brand has achieved both in terms of age spread, consumer types and international appeal
Interbrand
POWER BRANDS

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

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 products 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?
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
Thus, Benefits of Corporate Branding:

Every marketing dollar benefits each one of a
companys 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
Benefits of Corporate Branding:

New product launches/extensions cheaper and
quicker Long Term strategic focus Financial performance and value creation can be enhanced
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
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.
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
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

1800s Heritage Americana Vanilla Coke Authenticity
The Real Thing Red & White Striped Can Sold Everywhere Battles with Pepsi
Brand Equity
The Mc Donalds 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 Ones 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 its 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 dont love what youre offering me, Im 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 Consumers 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.
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 Worlds 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
Dont differentiate products

Brand Owners bright ideas can be instantly copied in
every continent
Brand Value
Expressive Values:
Say less about the product & more about the
consumer Reflect and enhance the consumers sense of him/herself Provide a key source of brand differentiation

Marlboros - masculine values Armanis - status and fashionable values Apple - creative and human values
Brand Value
Central Values:
Most Enduring Right to the Core of the Consumers Belief System
At their purest = embodied in religious, national or
political persuasions Comparable power = embody mass movements or cultural trends

1960s Coke I Like to teach the world to sing Today= Nike Just Do It, Richard Bransons Irreverent Virgin

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


Central
Beliefs & Core Values
Expressive
Benefits Features & Attributes

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)


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
Augmented Product
Expected Product Benefits
Generic Product
CORE BENEFIT Features & Attributes
Brand Value
OKValues are EssentialBUT Are they enough? What is missing??
Brand Value
Values Need to be Harnessed & Honed The Force

Brand Builders 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 Copernicuss 5 Step Process

Transformational Strategy Model-Based Marketing Planning Obsessive Implementation
Inspirational Vision
Diagnostic Metrics
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.
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.
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 companys products Transformational, revolutionary, not evolutionary
Brand Vision
Lets
review some published vision statements Assign them a college grade from 0 to 100.
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 companys trademarks.
Grade = 63
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!
Brand Vision
A motorcycle company We will crush, squash, slaughter Yamaha!
Grade = 85
Brand Vision
A technology company To eclipse IBM as the #1 technology company in the world.
Grade = 91
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
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 Copernicuss 5 Step Process

Transformational Strategy Model-Based Marketing Planning Obsessive Implementation
Inspirational Vision
Diagnostic Metrics
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.
What is a Brand?
of A Product
Augmented Product

Expected Product
Brand Name
Strong Brand
Generic Product
CORE BENEFIT
OWN Something
POWER BRANDS

BRAND DEPTH
POWER
BRAND WEIGHT
Interbrand
POWER BRANDS
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
- 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
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
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
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.
What are you deeply Passionate About
BHAG
What you Can be The Best in the World at
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
Branding
How
do we measure one brands performance vs another brand?
Branding
Brand Share of Market:

Measuring a brands 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 & Jerrys, Yahoo) Creating a whole new brand
Riskiest
Most lucrative
Six to Seven of Ten brands launched fail
Majority of Brand Builders main task

take existing brand legacy adapt brands to suit the requirements of more
sophisticated consumers.
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 valuesbrand owners may run into difficulties with this later..
Marketing as Brand Managements responsibility is to build long-term profitable growth for the companys brands.
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 brands CORE VALUES and abide by them.

Brand
= Primitive God
If we keep its laws And pay regularly the tributes due
(mainly advertising), fortune will smile on us otherwise, disaster.

You have to maintain and replenish a brand over time or it will die
Brand Vision and Essence
BRAND = Mindset EQUITY = Roots ESSENCE = Brands Soul VISION = Brands DNA

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

Marketers Responsibilities
Deduce customer interests from market research data Develop and refine brand strategy

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
Control advertising and promotion planning and execution
Develop new line extensions

Defend marketing budget Base decisions primarily on marketing judgement

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

Locus of Brand Ownership
Brand Managers

Locus of Brand Ownership
Chief Marketing Officer

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

Innovative Analysts Archeologists Sociologists Brand Champions Politicians General Managers Templar Knights of Equity Evangelists Brand Stewards
Parallel Path Strategic Growth Model (Sonis Standard Operating Procedure)
Guiding Focused Strategic Growth

Parallel Path Process
Building Brands NOT Growing Products
PATH 2: Weve got a Business to Run
$
PATH 1: Strategic Plan for Long Term Explosive Growth

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

#5
SET STRATEGIC PLAN
#4
#3 #2
Full Team Brainstormings

Vision >>Objectives >>Strategies
Brand Essence/Consumer Insight
#1


ASK & Listen
Focus on Immediate Business Issues
Ensure All Priorities & Deadlines are met
#1
Work Current Plan

Short Term: Running The Business

#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

$$
#5
SET STRATEGIC PLAN
#4
#3 #2
Full Team Brainstorm

Vision >>Objectives >>Strategies Strat & Tactic Successes/Failures
Facts vs Folklore
#1

Work Current Plan


$$
#5
SET STRATEGIC PLAN
#4
#3 #2
Full Team Brainstorm

Vision >>Objectives >>Strategies
#1

Building Brands Strat & Tactic Successes/Failures NOT Facts vs Folklore Growing Products
Work Current Plan
In Class Exercises:
Positioning Case Study Product and Brand Hierarchy Exercise
Self

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?
Kotlers 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

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)

BRAND HIERARCHY
LEVEL BRAND Name/Positioning Central Beliefs and Core Values Expressive Benefits Functional Features and Attributes Television or Juice Drink

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?

(PPT) Strategic Brand Management

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Strategic Brand Management

Brand Team Introductions

Name Personal Demographics

What Courses Youve Completed/Are In

Strategic Brand Management

Strategic Brand Management

Strategic Brand Management

Strategic Brand Management

The World's 10 Most Valuable Brands

Ad Spending Outside US (MMs)

Strategic Brand Management

Strategic Brand Management

Strategic Brand Management

The Top 10 US Advertisers

Kotlers Five levels to a product:

Kotlers Five levels to a product:

Kotlers Five levels to a product:

Kotlers Five levels to a product:

Kotlers Five levels to a product:

Kotlers Five levels to a product:

Kotlers Five levels to a product:

Physical good Service Retail Store Person Organization Place Idea

Brand = Mind Set

AMA (technical definition)

Rational and tangible Symbolic, emotional and intangible

The psychological response to a brand can be as important as the physiological response.

Brand = Mind Set

Why Does A Brand Matter?

Relative Brand Distinction

Relative Brand Distinction

differentiation and relevance Insulate product from competition OWN Something

BRAND DISTINCTION by Timothy D. Ennis

BRAND DISTINCTION by Timothy D. Ennis

What Makes the Best Brands?

Brands = Powerful emotional tools

Strategic Brand Management

Strategic Brand Management

Corporation vs Service vs Product vs Brand

Alternative Branding Models

Company is equal to Brands

Brands dominate the Company

Kleenix (Kimberly-Clark) Marlboro (Philip Morris) MCA Records (Universal

Wranlger (VF Jeans)

The Successful Brands

Assessing BRAND POWER

Assessing BRAND POWER

Assessing BRAND POWER

Assessing BRAND POWER

Assessing BRAND POWER

Assessing BRAND POWER

Power Brand = Master Brand?

single products functionality

Branding the Corporation

Brands are not just products but companies:

Why has marketing refocused efforts on the potential of corporate brands?

Branding the Corporation

Cost of creating and supporting product brands has become prohibitive

Brand Relationship Spectrum

Branding the Corporation

Thus, Benefits of Corporate Branding:

Branding the Corporation

Benefits of Corporate Branding:

Branding the Corporation