Brand Developing Strategies

PSU - 2006 - Global Brand
Management - Alain Hutinel.

1
Welcome to
GLOBAL BRAND MANAGEMENT

To-day
Goals
How we are going to work (syllabus)
Some rules

Part I : Investigating the Brand
power

2
Me
Alain Hutinel
Education
ESSEC
MBA Keller Graduate School of Business (Indiana
University)

Experience
20 years in FMCG Marketing, Colgate Palmolive &
Quaker Oats
2 years MD of an IT Network Cy
15 years of Consulting and Teaching

Major interests
. Teaching internationally
Marketing Communications and Brand
Management
. Discovering new ways of marketing
hutinel@pdx.edu

Office : 260C
Tu, W & Th.
503-725-3732
3
You
Special Topics/ Interest in Brands Specific project
Business actual situation ..

> lets talk and imagine
Your role :
to build your own brand model
so as to better anticipate what you think
will happen
4
Class materials
Course Slides + on PSU/SBA - Faculty
and Staff - Alain Hutinel website &
course e-mail (to-morrow)
CD-ROM
Reference book : Lane Keller,
Strategic Brand Management
Also : Brand Portfolio Management
by D.A. Aaker

5
(some) Brand Management Websites
www.pwcglobal.com/fr/fra PriceWaterhouse
www.tns.com Taylor Nelson Sofres, Etudes, Panels, Piges .
www.esomar.nl ESOMAR Recherche MArketing
www.brandweek.com US magazine
www.brandchannel.com Interbrand The site on Branding.
www.brandfinance.com
www.milwardbrown.com Brand research and survey company
www.future.sri.com Research International.
www.intelliquest.com Millward Brown.Adverising
www.accenture.com Accenture
www.ipa.com UK Institute of Professional Advertisers
www.prodimarques.com French Brand Association
www.labelmark.com French consultant
www.nomen.com French consultant for Brand Names search
www.mckinseyquarterly.com McKinsey
www.exmarketing.com Consultants, Bern Schmitt (Columbia U.)
www.bec-institute.com HighCo brand Institute partly in English
http://www.cobranding.com co-branding offers
www.globalbrand.org

6
What will be evaluated
Importance vs Completeness
Capacity to judge and build own opinion
(managerial aptitudes)
Capacity to anticipate and innovate (d)
Capacity to evaluate quality of marketing
activities (d)

7
YOUR ROLES
AND RESPONSIBILITIES
1. To build your own brand model
2. To anticipate what you think
should happen
3. Individually, to do the required
homework and participate in
class debate
4. To actively contribute to group
work

8
Requirements and grading
Readings as directed
3 individual essays from readings
3 individual cases (powerpoint format only)
1 group brand audit & project
9
Typical Reading/Essay format
The most important/new ideas/concepts retained by the writer(s)
Critique/discussion on these ideas, on methodology, argumentation etc
.
Give your opinion
Say what might happen 5 to 10 years from now
Provoque class debate

How you will apply in your brand audit

10 minutes = no more than 6/7 light slides
All work in powerpoint format

10
Course main Topics
Brand strategic role
The Brand system
Valuating the Brand
Brand Equity
Brand Identity

Managing the Brand
Communicative scope
Managing Brand
Architecture
Brand portfolio Issues
Cross-cultural Branding
11
TO-DAY
Investigating, understanding
the Brand Importance to the
firm
Defining the Brand
The Brand System
Defining the Brand roles
Brand Power and Value

12
Ultimately, Brands are all
about trust
the reason consumers flock to some brands
and ignore others is that behind the brand
stands an unspoken promise of value. That is
why brands are becoming even more
important drivers of growth. That is also why
Unilever wants Knorr, Skippy, Hellmanns,
SlimFast and Ben & Jerry on its plate.
Mukul Pandya, WSJ.
13
Key trends affecting brand
management & marketing !
Consumption, societal & cultural multi-
fragmentation & globalisition
Less loyal / more intelligent (?)
buyer
Self value-building consumption
Search for emotions
Multiplication of offers & chanels
Interactive marketing technologies
Markets saturation
Multiplication of touchpoints/contacts
Loss of credibility of traditional media
contacts

14
From USP to HSP
USP = Unique Selling Proposition
ESP = Emotional Selling Proposition
OSP = Organizational Selling Proposition
BSP = Brand Selling Proposition
MSP= Me Selling Proposition
HSP =Holistic Selling Proposition

(Martin Lindstrom)
15
A Brand builds its Own world
And that is a fantastic power !
16
In this brand (!) new
world, What IS a Brand
and What DOES a Brand
do?
17
Think of Brands in your own life
1 - Think of how you became aware of
them, why you bought them, why you
prefer them, how you feel about them ...
2 - List them as they come to your mind
3 - Chose one brand you are very
familiar with :
. What does this Brand do for you?
. What does it MEAN to you?
. How do you relate to it ?
4 Main characteristics of a world
without Brands ?
18
What is the best
Who makes the best . Automobile ?

Do you own one ?
Have you ever owned one ?
Have you ever driven one ?
Do you know anybody who owns one ?
How do you know .. It is the best ?

19
Brand is an experience
A brand is essentially a container for a costumers
complete experience with the offer and the
company. (Sergio Zyman)
20
21
What is a Brand
(shortcut) ?
Attributes
Benefits Values
Culture
User
Personality
22
The Brand as an Open System.
.Scope
.Attributes
.Uses
.Quality/
Value
.Functional
Benefits
Organizations
associations
Personality
Symbols
Origin
User Imagery
Relationships with
customers
Self-expressive
benefits
Emotional benefits
(Core) Offer
(Tangible Products &
Services)
Codes/Tone
Competition
Skills
Name
Corporation
Economy

Chanels, contacts

Tribes
Cultures
Groups
23
This Brand System
interacts AS ...
1) .. A SOCIO-ECONOMIC AGENT

2) .. A CORPORATE ASSET

3) .. A STRATEGIC MARKETING
TOOL

4) .. A COMMUNICATING &
SELLING AGENT
24

THE BRAND AS A SOCIO-ECONOMIC
AGENT

PART OF EACH INDIVIDUALS AND SOCIETAL
GROUPS SET OF REFERENCES
A POWERFUL SOCIAL DRIVER
A GLOBAL CIMENT
A VALUE ADDING ECONOMIC AGENT

25
26
Brand Strategic Role
Brand
Equity
Cash flow
booster
Consumer
Response
Booster
27
28

THE BRAND AS A CORPORATE ASSET
A PROTECTED PROPERTY (owner's right to use)

BOOK VALUE, GOODWILL. ASSET that can be
sold and bought

MARKETING NON TANGIBLE ASSET
precisely measurable and valuable (when
brand is on sale) :
STRENGTH , LEADERSHIP & EQUITY, ie
capacity to justify price.

29
Brand Asset Value
Source : K.L.Keller
30
BRAND EQUITY
as a Percent of Firm Tangible Assets
Industry
Brand Equity
Apparel 61
Tobacco 46
Food products 37
Chemicals 34
Electric machinery 22
Transportation equip. 20
Primary metals 1
Stone, glass, and clay 0
31
Brand (Market) Performance
Valuation
DDB Pricing Studies
Landor Power Index
Interbrand Valuation model
Y&R Brandasset Valuator
Intangible Value Valuator
Sometimes stock market value
32
The Landor Power Index
Power = strength
2 synthetic
measures
Awareness
Esteem
Share of Mind
idea (cf. Share of
Market Share of
Voice, Share of
Requirements ....)
Most influencing
factor : brand
perceived quality
need time

33
Interbrand BRAND VALUE
Attributes
Leadership (25%)
Market share,
Awareness,
Positioning,
Competitor Profile
Stability (15 %)
Longevity Coherence
Consistency,
brand Equity, risks
Market (10 %)
What market,
Volatility size Market
dynamics Barriers
Internationality (25%)

Trend (10 %)
LT erformance,
Projected performance,
Sensibility of Plans,
competition reactivity
Support (10 %)
Consistency of message
and spendings,
Above/below the line
Brand franchise
Protection (5%)
Trademark registration
/registrability
common law,
litigations/disputes

34
Interbrand Ranking and Ratio of Brand value to Firm Market Value
SM % B
Rank $ bns Rank $ bns Rank $ bns Rank $ bns $ bns /SM RANK $bns RANK $bns
1 Coca-Cola 39 Coca-Cola84 Coca-Cola 69 Coca-Cola 70 138 51 Coca-Cola 71 Coca-Cola 67
2 Marlboro 39 Microsoft 57 Microsoft 65 Microsoft 64 276 23 Microsoft 65 Microsoft 61
3 IBM 17 IBM 44 IBM 53 IBM 51 138 37 IBM 52 IBM 54
4 Motorola 15 GE 34 GE 42 GE 41 309 13 GE 42 GE 44
5 HP 13 Ford 32 Nokia 35 Intel 31 185 17 Intel 31 Intel 33
6 Microsoft 12 Disney 32 Intel 35 Nokia 30 68 44 Nokia 29 Disney 27
7 Kodak 12 Intel 30 Disney 33 Disney 29 47 62 Disney 28 McDonald's 25
8 Budweiser 11 McDonald's 26 Ford 30 McDonald's 26 38 68 McDonalds 25 Nokia 24
9 Kellogg's 11 AT&T 24 McDonald's 25 Marlboro 24 Marlboro 22 Toyota 23
10 Nescaf 10 Marlboro 21 AT&T 23 Mercedes 21 Mercedes 21 Marlboro 22
11 Intel 10 Nokia 21 Marlboro 22 Ford 20 32 63 Toyota 21 Mercedes 21
12 Gillette 10 Mercedes18 Mercedes 22 Toyota 20 100 20 HP 20 HP 21
13 Pepsi 8 Nescaf 18 Citibank 19 Citibank 18 223 8 Citibank 19 Citibank 20
14 GE 7 HP 17 Toyota 19 HP 17 58 29 Ford 17 Amex 18
15 Levi's 7 Gillette 16 HP 18 Amex 16 57 28 Amex 17 Gillette 17
16 Frito-Lay 7 Kodak 15 Cisco 17 Cisco 16 116 14 Gillette 16 Cisco 16
17 Compaq 7 Amex 17 AT&T 16 43 37 Cisco 16 BMW 16
18 Bacardi 7 Gillette 15 Honda 15 42 36 Honda 16 Honda 15
19 Campbells 7 Merryll Lynch 15 Gillette 15 38 39 BMW 15 Ford 14
20 Pampers 6 BMW 11 Sony 15 BMW 14 29 48 Sony 13 Sony 13
21 Honda 15 Sony 14 53 26 Nescafe 12 Samsung 12
22 BMW 14 Nescafe 13 Budweiser 12 pepsi 12
23 Nescaf 13 Oracle 12 44 27 Pepsi 12 Nescafe 12
24 Compaq 12 Budweiser 11 45 24 Oracle 11 Budweiser 12
25 Oracle 12 Merrill Lynch 11 35 31 Samsung 11 Dell 12
26 Budweiser 11 Morgan St. 11 50 22 Morgan St. 11 Merrill Lynch 11.5
27 Kodak 11 Compaq 10 Merrill lynch 11 Morgan St. 11.5
28 Merck 10 pfizer 10 217 5 Pfizer 11 Oracle 11
29 Nike 8 Nintendo 9 J.P. Morgan 10 72 14 Dell 10 Pfizer 10.6
30 Pfizer 9 Kodak 10 10 100 Merck 9 J.P. Morgan 10
31 Gap 9 Dell 9 70 13 JPMorgan 9 Nike 9.3
32 Dell 8 Nintendo 9 20 45 nintendo 8 Merck 8.8
33 Golman S. 8 Mercx 9 130 7 Nike 8 HSBC 8.7
34 Nike 8 Samsung 8 Kodak 8 SAP 8.3
35 VW 7 Nike 8 SAP 8 Canon 8.1
36 Ericsson 7 Gap 7 13 54 Gap 8 kellogg's 8
37 Apple 4 Heinz 7 Heinz 7 HSBC 8 Goldman S. 8
38 Levi's 7 VW 7 21 33 Kellogg's 7 Gap 7.9
39 Kellog's 7 Goldman S. 7 36 19 Canon 7 Siemens 7.5
40 MTV 7 Kellog's 7 15 47 Heinz 7 Ikea 7.2
41 Canon 7 Louis Vui. 7 26 27 Goldman S. 7 HD 7.1
42 Samsung 6 SAP 7 33 21 VW 7 Heinz 7
43 SAP 6 Canon 7 34 21 Ikea 7 Apple 6.9
44 Ikea 4 Pepsi 6 Ikea 7 HD 7 Louis Vui. 6.6
45 Xerox 6 Pepsi 6 92 7 Louis Vui. 7 UBS 6.5
46 Ikea 6 HD 6 16 38 MTV 6 Nintendo 6.5
47 Pizza Hut 6 MTV 6 L'Oreal 6 MTV 6.5
48 HD 6 Pizza Hut 6 Xerox 6 VW 6.4
49 Apple 5 KFC 5 KFC 6 L'Oreal 5.9
50 Gucci 5 Apple 5 Apple 6 Accenture 5.8
51 KFC 5 Xerox 5 34 #### Pizza Hut 5 Xerox 5.7
52 Ralph Lauren2 Gucci 5 24 #### Accenture 5 Wrigley's 5.4
53 Accenture 5 Gucci 5 Kodak 5.2
54 L'Oreal 5 48 10 Kleenex 5 KFC 5.1
55 Kleenex 5 Wrigleys 5 Pizza Hut 5
56 Sun 5 22 23 Colgate 5 Colgate 5
57 Wrigley's 5 Avon 5 Kleenex 4.9
2003 2004 2002
Interbrand value 1995 1999 2001
MB
Interb.
35
Monash University MBA - January
2002 - Prof. A. Hutinel 26
Emerging
potential
Leadership
New/unfocused Eroding Potential

Brand Stature
Brand
Strength
Differenciation Relevance Esteem Knowledge
D R E K D R E K
DR E K D R E K
Y&R s Brandasset Valuator PowerGrid
36
Heinz Ketchup - 2000
37
THE BRAND AS A KEY STRATEGIC
MARKETING TOOL

* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE
Adaptable to changing environments and technologies

* SUPPORT OF LONG-TERM TIES WITH PEOPLE

* ALLOWS LOWER COST for NEW ENTRIES

* UNIQUE SPOKESMAN TO ALL PUBLICS

* JUSTIFIES HIGHER PRICE & MARGINS
38
The Brand Value Chain
Value Stages
Marketing programs
Customer Mindset
Market Performance
Shareholder Value
Value Multipliers
Programs Quality
Market Place &
Competition Conditions
Investor Sentiment
39
The Leading Brands: 1925 and 1985
Product Leading Brand 1925 Current Position 1985
Bacon Swift Leader
Batteries Eveready Leader
Biscuits Nabisco Leader
Breakfast cereal Kellogg Leader
Canned fruit Del Monte Leader
Chewing gum Wrigley Leader
Chocolates Hershey No. 2
Flour Gold Medal Leader
Mint candies Life Savers Leader
Paint Sherwin-Williams Leader
Pipe tobacco Prince Albert Leader
Razors Gillette Leader
Sewing machines Singer Leader
Shirts Manhattan No. 5
Shortening Crisco Leader
Soap Ivory Leader
Soft drinks Coca-Cola Leader
Soup Campbell Leader
Tea Lipton Leader
Tires Goodyear Leader
Toothpaste Colgate No. 2
40
RATE OF LOYALTY
CAPACITY TO BUILD IT
LEVEL AND SCOPE OF
AWARENESS
LEVEL & DISTINCTIVENESS
OF PERCEIVED QUALITY
MEASURED STRENGTH OF
IMAGE AND IDENTITY
UNIQUENESS OF PERCEIVED
POSITIONNING
PREFERENCE POWER
OF PERCEIVED BENEFITS
BRAND EQUITY & MARKETING ASSETS
41
Building Brand Equity
Brand
Equity
(Name &
Symbol)
Value To Customer
Info Processing
Confidence in Buying
Use Satisfaction

Value To Firm
Helps Programs
Brand Loyalty
Prices
Brand Extensions
Trade Leverage
Competitive
Advantage
Name
Awareness
Perceived
Quality
Brand
Associations
Other
Brand
Assets
Brand
Loyalty
Preference
42
P & G - Mr Propre Mr Clean
43
THE BRAND AS A
COMMUNICATING
& SELLING AGENT

* A RELATIONSHIP ACTOR/BUILDER

* AN INFLUENCER

* IT GIVES MEANINGS TO
PRODUCTS/SERVICES ...

* ... AND A CREATOR OF NEW WORLDS
44
The best Performances last longest.
45
From Traditional Marketing
Functions of the Brand Name
Identification
Expresses the offer and is easily seen
Practicality
Saves times/energy thru repeat
purchase & renewed satisfaction
Guarantee of quality
Has reputation

46
to a powerful societal
system that sells

ie :
exerts influences in the market place
changes consumers wants and needs
sets ideals and standards
helps/facilitates choice
provides purchase reassurance
reduces after-choice dissonance

47
.
gives meanings and identity to what we
use & buy
helps us build our self-identity
provides a symbolic language through
which we can express ourselves in
society and be recognized and
understood by others
creates a longlasting relationship with
consumers , at least with customers
48
So, a modern brand is
A persona that overlays and
includes the physical products/services
the sum of fundamental values and
attributes ascribed to it by people
the entity that the consumers construct
from the products meanings, symbols
and images that they perceive as
defining the brand.
49
Evian, approved spring of youth for your body.
Evian Water brings health to all growing bodies
50
51
52
US - Evian. lOriginal. Approved by your body
as a source of youth.
53
54
Many different types of
brands ?
B2B
B2C
Web
Trade
Local
Regional
National
International
Worlwide (meta)

Corporate
Commercial
Non-business (?)
Countries
Official bodies
Charity org.
Politics/Polticians

55
Nestle Branding Tree
7500 Local Brands
Solis, Texicana, Rocky
140 Regional Brands
Contadina, Stouffers, Herta, Vittel
45 Worldwide strategic Brands
KitKat, Polo, Baci, After Eight, Coffee-Mate
10 worldwide Corporate Brands
Nestle, Carnation, Maggi, Buitoni, Perrier
56
Nestl Branding Tree
57
SARA LEE BRANDS
25,000 brands registered worldwide, 80% in
use.
Sara Lee is eliminating R&D & Production to
focus on brand development
GLOBAL

REGINAL

LOCAL BRANDS
Sara Lee
Brand
Hierarchy
58
From Traditional to Experiential
Branding
From
Brands as identifiers
Names, logos, slogans
build awareness and
image

TO
Brands as experience
providers
Names, logos, slogans,
events, customer
contacts which build
sensory, affective,
creative relations and
ways of being (lifestyles)
with the brands

Brand Developing Strategies

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