Welcome to GLOBAL BRAND MANAGEMENT

To-day

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

Part I : Investigating the Brand power

PSU - 2006 - Global Brand Management - Alain Hutinel.

Me
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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
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Office : 260C Tu, W & Th. 503-725-3732

hutinel@pdx.edu PSU - 2006 - Global Brand Management - Alain Hutinel.

You
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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

PSU - 2006 - Global Brand Management - Alain Hutinel.

Class materials
Course Slides + on PSU/SBA - Faculty and Staff - Alain Hutinel website & course e-mail (to-morrow) l CD-ROM l Reference book : Lane Keller, Strategic Brand Management Also : Brand Portfolio Management by D.A. Aaker
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PSU - 2006 - Global Brand Management - Alain Hutinel.

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(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

PSU - 2006 - Global Brand Management - Alain Hutinel.

What will be evaluated

Importance vs Completeness l Capacity to judge and build own opinion (managerial aptitudes) l Capacity to anticipate and innovate (d) l Capacity to evaluate quality of marketing activities (d)
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PSU - 2006 - Global Brand Management - Alain Hutinel.

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 PSU - 2006 - Global Brand
Management - Alain Hutinel.

Requirements and grading

Readings as directed l 3 individual essays from readings l 3 individual cases (powerpoint format only) l 1 group brand audit & project
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PSU - 2006 - Global Brand Management - Alain Hutinel.

Typical Reading/Essay format

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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

PSU - 2006 - Global Brand Management - Alain Hutinel.

Course main Topics

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Brand strategic role The Brand system Valuating the Brand Brand Equity Brand Identity

Managing the Brand Communicative scope l Managing Brand Architecture l Brand portfolio Issues l Cross-cultural Branding
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PSU - 2006 - Global Brand Management - Alain Hutinel.

TO-DAY
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Investigating, understanding the Brand Importance to the firm Defining the Brand The Brand System Defining the Brand roles Brand Power and Value
PSU - 2006 - Global Brand Management - Alain Hutinel.

 Ultimately, Brands are all about trust

Cliquezreasonmodifier le style des some brands and ignore others is that behind the the pour consumers flock to sous-titres du masque 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.

PSU - 2006 - Global Brand Management - Alain Hutinel.

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Consumption, societal & cultural multifragmentation & 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 PSU - 2006 - Global Brand contacts
Management - Alain Hutinel.

Key trends affecting brand management & marketing !

From USP to HSP

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USP = Unique Selling Proposition ESP = Emotional Selling Proposition OSP = Organizational Selling Proposition BSP = Brand Selling Proposition MSP= Me Selling Proposition HSP =Holistic Selling Proposition
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(Martin Lindstrom)

PSU - 2006 - Global Brand Management - Alain Hutinel.

A Brand builds its Own world

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And that is a fantastic power !

PSU - 2006 - Global Brand Management - Alain Hutinel.

In this brand (!) new world, What IS a Brand and What DOES a Brand do?
Cliquez pour modifier le style des sous-titres du masque

PSU - 2006 - Global Brand Management - Alain Hutinel.

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Think of Brands in your own life

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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 ?
PSU - 2006 - Global Brand Management - Alain Hutinel.

What is the best

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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 ?
PSU - 2006 - Global Brand Management - Alain Hutinel.

Brand is an experience
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A brand is essentially a container for a costumers complete experience with the offer and the company. (Sergio Zyman)

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

What is a Brand (shortcut) ?

User

Cultu re Attrib utes

Perso nality Benef its Value s

PSU - 2006 - Global Brand Management - Alain Hutinel.

The Brand as an Open System.

Chanels, contacts Relationships with customers .Scope .Attributes .Uses .Quality/ Value .Functional Benefits Personality Codes/Tone Symbols User Imagery Name Tribes Cultures Groups Emotional benefits PSU - 2006 - Global Brand Management - Alain Hutinel.

Corporation Economy

Competition Organizations associations Skills Origin (Core) Offer

(Tangible Products & Services)

Self-expressive benefits

This Brand System interacts AS ...

1) .. A SOCIO-ECONOMIC AGENT 2) .. A CORPORATE ASSET 3) .. A STRATEGIC MARKETING TOOL 4) .. A COMMUNICATING & SELLING AGENT
PSU - 2006 - Global Brand Management - Alain Hutinel.

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

PSU - 2006 - Global Brand Management - Alain Hutinel.

Coca Cola 2222 .jpg

PSU - 2006 - Global Brand Management - Alain Hutinel.

Brand Strategic Role

Bra nd Equi ty

Cash flow booster

Consume r Response Booster

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

THE BRAND AS A CORPORATE ASSET

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.

PSU - 2006 - Global Brand Management - Alain Hutinel.

Brand Asset Value

Source : K.L.Keller

PSU - 2006 - Global Brand Management - Alain Hutinel.

BRAND EQUITY
as a Percent of Firm Tangible Assets Brand Equity Industry
Apparel Tobacco Food products Chemicals Electric machinery Transportation equip. Primary metals Stone, glass, and clay PSU - 2006 - Global Brand Management - Alain Hutinel. 61 46 37 34 22 20 1 0

Brand (Market) Performance Valuation

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DDB Pricing Studies Landor Power Index Interbrand Valuation model Y&R Brandasset Valuator Intangible Value Valuator Sometimes stock market value
PSU - 2006 - Global Brand Management - Alain Hutinel.

The Landor Power Index

Most influencing Power = strengthfactor : brand l perceived quality 2 synthetic measures Awareness l need time Esteem l Share of Mind idea (cf. Share of Market Share of Voice, Share of Requirements ....)
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PSU - 2006 - Global Brand Management - Alain Hutinel.

Interbrand BRAND VALUE Attributes

Leadership (25%)

Market share, Awareness, Positioning, Competitor Profile

Stability (15 %)

Trend (10 %) LT erformance, Projected performance, Sensibility of Plans, competition reactivity Support (10 %)

Longevity Coherence Consistency, brand Equity, risks

Market (10 %)

Consistency of message and spendings, Above/below the line Brand franchise

Protection (5%)

What market, Volatility size Market dynamics Barriers

Internationality (25%)

Trademark registration /registrability common law, litigations/disputes

PSU - 2006 - Global Brand Management - Alain Hutinel.

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Interb.

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PSU - 2006 - Global Brand Management - Alain Hutinel.

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Y&R s Brandasset Valuator PowerGrid

Emerging potential

Leadership

Brand Strength

R E

DR EK
Eroding Potential

New/ unfocused

DR

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B rand Stature

D ifferenciation R elevance E steem K nowledge

Monash University MBA - January 2 2 Prof. A. Hutinel 2 2-

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PSU - 2006 - Global Brand Management - Alain Hutinel.

Heinz Ketchup - 2000

PSU - 2006 - Global Brand Management - Alain Hutinel.

THE BRAND AS A KEY STRATEGIC MARKETING TOOL

* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE
* SUPPORT OF LONG-TERM TIES WITH PEOPLE * ALLOWS LOWER COST for NEW ENTRIES * UNIQUE SPOKESMAN TO ALL PUBLICS

Adaptable to changing environments and technologies

JUSTIFIES HIGHER PRICE & MARGINS

PSU - 2006 - Global Brand Management - Alain Hutinel.

The Brand Value Chain

Value Stages l Marketing programs l Customer Mindset l Market Performance l Shareholder Value Value Multipliers l Programs Quality l Market Place & Competition Conditions l Investor Sentiment

PSU - 2006 - Global Brand Management - Alain Hutinel.

The Leading Brands: 1925 and 1985

Product Position 1985 Leading Brand 1925 Current
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 PSU - 2006 - Global2 Toothpaste Colgate No. Brand

Management - Alain Hutinel.

R A N D

E Q

IT Y

&

E T I N

R A T E LO O F Y A L T Y A P A C IT Y T O B U

I L D P E O

IT F

L E V E L A N D S C O A W A R E N E S S L E V E L & O FP E R C M E A S U R I M A G E N I Q

D I S T I N C T I V E N E S S E I V E D Q U A L I T Y E D A N S T R E N G T H D ID E N T I T Y O F

U E N O S SP E R C E I V E D E F P O S I T IO N N I N G E R B E N

P R E F E R E P OC W N E O F P E R C E I V E D
PSU - 2006 - Global Brand Management - Alain Hutinel.

E F I T S

Building Brand Equity

Name Awareness Brand Loyalty Perceived Quality Associations Other Brand Brand Assets Equity (Name & Value To Firm Helps Programs Symbol)

PreferenceBrand

Value To Customer
Info Processing Confidence in Buying Use Satisfaction

PSU - 2006 - Global Brand Management - Alain Hutinel.

Brand Loyalty Prices Brand Extensions Trade Leverage Competitive Advantage

P & G - Mr Propre Mr Clean

PSU - 2006 - Global Brand Management - Alain Hutinel.

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
PSU - 2006 - Global Brand Management - Alain Hutinel.

The best Performances last longest. PSU - 2006 - Global Brand Management - Alain Hutinel.

From Traditional Marketing Functions of the Brand Name

Identification Expresses the offer and is easily seen l Practicality Saves times/energy thru repeat purchase & renewed satisfaction l Guarantee of quality l Has reputation
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PSU - 2006 - Global Brand Management - Alain Hutinel.

 to a powerful societal system that sells

ie : l exerts influences in the market place l changes consumers wants and needs l sets ideals and standards l helps/facilitates choice l provides purchase reassurance l reduces after-choice dissonance
PSU - 2006 - Global Brand Management - Alain Hutinel.

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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
PSU - 2006 - Global Brand Management - Alain Hutinel.

So, a modern brand is

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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.
PSU - 2006 - Global Brand Management - Alain Hutinel.

Evian Water brings health to all growing bodies

Evian, approved spring of youth for- your body. PSU - 2006 Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

US - Evian. lOriginal. Approved by your body as a source of youth.

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

Many different types of brands ?

B2B Corporate l B2C l Commercial l Web l Trade l Non-business (?) l Local Countries l Regional Official bodies l National Charity org. l International Politics/Polticians l Worlwide (meta)
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PSU - 2006 - Global Brand Management - Alain Hutinel.

Nestle Branding Tree

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7500 Local Brands

140 Regional Brands

Solis, Texicana, Rocky

Contadina, Stouffers, Herta, Vittel KitKat, Polo, Baci, After Eight, Coffee-Mate

45 Worldwide strategic Brands 10 worldwide Corporate Brands

Nestle, Carnation, Maggi, Buitoni, Perrier
PSU - 2006 - Global Brand Management - Alain Hutinel.

Nestl Branding Tree

PSU - 2006 - Global Brand Management - Alain Hutinel.

SARA LEE BRANDS

25,000 brands registered worldwide, 80% in use. l Sara Lee is eliminating R&D & Production to focus on brand development
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GLOBAL REGINAL
PSU - 2006 - Global Brand LOCAL BRANDS Management - Alain Hutinel.

Sara Lee Brand Hierarchy

From Traditional to Experiential Branding

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

PSU - 2006 - Global Brand Management - Alain Hutinel.