Brand Corporate

8/7/2019 Brand Corporate

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BRAND MANAGEMENT

What is a brand?

Threats to brands in the New Economy

What makes a strong brand?

Elements of a brand

Brand equity

Brand chartering

Brands and the organisation

Positioning the Brand

Brand identity

Communicating the BrandBrand extensions

Brand loyalty

Global brands


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Brand: A Definition

ACCORDING TO MARKETING THEORY:

a name, term, symbol or design, or a combination of them, which isintended to signify the goods of one seller or groups of sellers and todifferentiate them from those of competitorsKotler (1994), Marketing Management

RATHER DEFINE A BRAND IN RELATION TO THE CUSTOMER:

is the means by which the company establishes arelationship with

the customer (because a brand has an identity and a personality anda product not)

A sum of all available information about the company, product orservice, gained from experience (functional and emotional),differentiating it from another. The appeal is both rational andemotional level; tangible and intangible

The space in consumers hearts and minds that belongs to youA/O

The reason to choose you over the other guys


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What is a Brand? Product vs Brand

A product is something that is made in a factory; a

brand is something that is bought by a customer. A

product can be copied by a competitor; a brand is

unique. A product can be quickly outdated; a successful

brand is timeless.

Stephen King (WPP Group, London)


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Brands are under Treat

SOURCES OF THREATS ON BRANDS:

Educated consumers

Became marketing literate; brands had to offer real added

value; trend: loyal customers became loyal to group of brands

rather than to a single brand.

Powerful retailersStrong retailers dictate terms to manufacturers (e.g. Pick n

Pay); retailer builds own brand (Woolworths) customer loyal

to retailer rather than product; only 1 label sold (power of the

retail brand).

Both of the above leading to pressure on pricesNo added value consumer will not pay price premium; trend

demand both low prices AND added value


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Brands are under Treat (cont)

The growth of own label

If the retailer represents some strong brand values itself, the way is clear

for own label products (Woolworths; Pick n Pay) e.g. own Colas

Brand extension instead of innovation

Brands which in the past were built through real technical innovation can

no longer keep pace, and may choose instead to extend an existing brand

into new areas or variants. Can enhance brand, but there is danger ofbrand dilution or of confusing the customer (e.g. Pierre Cardin).

New competition from outside the sector

Existing strong brands looking to extend their franchise into other areas

also pose a threat (e.g. Virgin). NB! New competitors like this are hard to

fight because they are playing a different game.

A/O


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What makes a Strong Brand?

It must work as a product or service no fancy advertising or

clever logo will compensate

Must appeal on both the rational and emotional level

products may all work well; price premium is justifid by

additional intagible, emotional benefits.

Must be integrated and coherent tangible and intangible

benefits must be consistent with each other to present a

coherent and believable brand personality (TAG-Heuer)

What it offers must be wanted by the customer and mean

something to him/her what is relevant may change over

time: e.g. environmentally friendly is a relevant benefit

now for products from motor cars to holidays; 30 years ago

no premium paid for these products.


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Examples of Successful Branding

Ingredient / Component branding Lycra, Teflon

Corporate Shell, Virgin, Old Mutual

Newspapers Financial Mail, Financial Times (UK)

Supermarkets Woolworths, Pick n Pay

Convenience stores -- 7 Eleven, 8 to LateSpeciality retailers Cape Union Mart, The Body Shop

??


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Elements of a Brand

APPROACH: Separate the physical attributes from

emotional benefits. What lies at the core of the brandsidentity?

Essence(CORE)

Emotional benefits

Physical Attributes

Arnold, D (1992), The Handbook of Brand Management)


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The Anatomy of a Brand

MARLBORO

Strength &independence

Sense offreedomand

strength

Americanimagery

Masculine Contemporary

Strongflavour

Boldness &independenceMarlboro

man(cowboy)

Marlboro

country

Endorsement of male/sports activities

Brownfilter

Strengthandflavourof blend

Red & whitepackaging


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Brand Mapping (class exercise)

Break down a well-known brand that is familiar to everyone in

the group into its various elements (see Marlboro):Nandos

Castle Lager

Levis

Land Rover

Samsung

VW

Waterman

Adidas

Harley-Davidson

Nokia


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Brand Equity

Strong brands can be assets to companies and

organisations

1980s: concept of brand equity describe the sum of

these assets

Brand equity needs to be nurtured and defended

Brand equity can be measured both internally and

externally


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Brand Equity Defined

Brand Equity can be defined as consisting of 5 assetcategories:

Brand awareness

Brand loyaltyPerceived quality

Brand associations in addition to perceived quality

Other proprietary brand assets (patents, trademarks,etc)

Aaker, D (1996), Building Strong Brands


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Brand Equity

BRAND EQUITY

Brand Loyalty

Nameawareness

Perceived quality

Brandassociations

Other proprietarybrand assets

Provides value to Customerby enhancing Customers

Interpretation /Processing ofInformation Confidence in thePurchase Decision Use satisfaction

Provides Value to Firmby Enhancing: Efficiency and

Effectiveness ofMarketing Programmes Brand Loyalty Prices/Margins Trade Leverage Competitive Advantage


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Measuring Brand Equity

Interbrand tracks leading brands on a number ofvariables:

Sales

Market growthInternationalisation

Well protected in law, etc.

Good practice to measure your own and the

competition brands part of broader evaluation ofstrategic health of company.


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Brand Dimensions (according toInterbrand)

BRAND WEIGHT (dominance)

BRAND LENGTH (stretch)

BRAND BREADTH (franchise)

BRAND DEPTH (commitment)


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Brand Weight

Dominance in category or market

Dominant market share (market leaders)

Standard setter

McDonalds, Coca-Cola, Kodak, Gillette


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Brand Length

Stretch and strechability into new categories and

markets

Wide area of competence

Disney, Johnson & Johnson, Harrods, Virgin, Sony


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Brand Breadth

Breadth of franchise in terms of age spread, consumertypes and international appeal.

A broad brand can cross social, cultural and national

boundaries.

Coca-Cola, MaDonalds, Kodak, Somy, Visa, Microsoft


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Brand Depth

Degree of commitment the brand has achieved amongits customer base and the proximity, intimacy and

loyalty they feel to the brand.

Intimate relationship with customers, usually on the

basis of shared central or higher values.

Apple Computer, Disney, Body Shop, Harley-Davidson,

Camel


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Brand Chartering

Recent development (concept)

Tough internal audit to charter the underlying strength

of their brands on a regular basis

Brand Chartering probes the organisation (strategic

strengths) behind the brand

Brand Equity strength of the brand in the marketplace

How to do brand chartering:

Is there a common interpretation of the brands

essential meaning throughout the organisation?

What core competencies does the brand represent?Would the people be proud to be called

manifestations of the brand?Macrae, C (1996), The Brand Chartering Handbook


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Brand Identity

DEFINITION OF BRAND IDENTITY

Brand identity is how the company wants the brand to

be perceived.

Aaker (1996), Building Strong Brands


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Brand Identity

Must be relevant to customer needs and wants

Must be clear and easy to understand

Is at the heart of the relationship between customer andcompany

Heart of any brand strategy

Has a personality of its own

Has human qualities which appeal to customers

See brand as a person and ask:

If this brand were a person, what sort of car would itdrive?

What is its favourite drink?

What would it say to you?

If answer is not obvious, the brand personality and also brandidentity is not clear


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Brand Extension

A way ofstrengthening a brands positioning

Recent example of classic line extension: McGraw-Hill--publisher of textbooks and educational materials intochildrens educational software. They started with the brandslong-standing reputation for educational excellence. Virgin

Todays definition of brand extension:

GlobalisationDemographic shifts new classes of consumers

Technology new channels of marketing (Internet,Satellite TV)

Industry consolidations fewer brand choices; likely tobecome loyal to one

Increasing emphasis on relationships customers wantbrands to be accountable for their products and promises.


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Brand Extension (cont)

4 WAYS TO EXTEND:

Licensing

Pierre Cardin to a variety of marginal products brand weakened

Co-brandingDisney and McDonalds there has to be a fit

Sponsorships

E.g. Olympic Games linking up with big events

Brand agents

Individuals that are not only celebrities, but stiremotions that support the brand in a meaningfulway (e.g. Tiger Woods & Nike)


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Brand Loyalty

Customers become loyal ifbrand identity is communicated

effectively and positioned positively in their minds

However, this does not mean they will never buy any other brand

Customers tend to use repertoires of brands rather than single

brands

The specific brand they buy on any one occasion will depend onother factors such as availability, special price offers, recent

advertising campaigns, point of sale factors.

Highly educated and affluent groups are found to be less loyal! (not

willing to pay a price premium for branded products)


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Brand Loyalty

Brand Loyalty

Reduced Marketing Costs

Trade Leverage

Attracting New Customers: Brand awareness created Reassurance to new customers

Time to respond to competitivethreats


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How to Maintain Brand Loyalty

Brand Loyalty

Treat the Customer right

Stay close to the Customer

Measure / ManageCustomer Satisfaction

Create a solution for aCustomer Problem /Reward loyalty

Provide Extras


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Brand Awareness

Top ofMind

Brand Recall

Brand Recognition

Unaware of Brand


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Global Brands

Global brands can reap benefits of economies of scale in

production, marketing and distribution. They must stay

responsive of customer wants may vary from one

country or region to another. The issue ishow to balance

global economies of scale with local responsiveness.

Country specific?Other factors (youth, luxury?) not country specific

Different type of channels?

Competition local or international?

Communication will have to be different even for globalbrands (Coke has more than 20 different advertisement

versions)


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Positioning the Brand (Definition)

DEFINITION OF BRAND POSITIONING:

A companys attempts to influence the customers (targetmarkets) perception of its brand by presenting (communicating)it in a certain way through:

AdvertisingPoint of sale material

Direct mail

PR

Etc

NB! The brand is actually positioned by the consumer all thecompany can do is send positioning prompts to influence.


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Positioning: How to Build a Brand that Sells

Focus

Choose one distinctive thing that will give you the edgeHalo effect

Invest in one positive image that will impact on the wholeportfolio

Start with current position

Turn current customer perceptions into benefits (if gapbetween perception and reality is too big, they wont makethe leap)

Be different

Positioning is about clear, positive difference

Be distinctive

Message need to be unique, hard-hitting, sensory, creative


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Developing a Brand Positioning

3 ESSENTIAL COMPONENTS FOR DEVELOPING A

CLEAR BRAND DEFINITION:

Clear vision why are you in business?; where areyou going? (3M: to solve unsolved problemsinnovatively)

Concise meaning what your brand represents tothe marketplace

Understand parameters of relevance whatyour brand is and what it is not (limits to which youcan extend your brand beyond its core meaningwithout compromising your credibility)

Examples Disney (clear vision to make peoplehappy); Microsoft (vision a computer on everydesk in every home)


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Positioning Organisational Alignment

ORGANISATIONAL ALIGNMENT PROGRAMME

Use tagline or theme can make or break brandbuilding

Identify a few words that communicate the full weightand force of brand message

All activities get their energy from this positioningdevice.

Tagline must:

Provide clear and recognisable differentiation

Respond to customers most pressing needs in abelievable manner

Provide guidance for management decision-making,hiring, training and resource allocation


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Positioning the Brand Key Factors

Successful brands are not created overnight result of

careful positioning, supported by long term strategies

and consistent investment

Frequent change in brand positioning customer

becomes confused

Considerable time and effort must be spent in

understanding how the customer perceives the brand,

before thought can be given to changing that

perceptionChanges in customer perception only achieved in

small steps over long periods of time


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Positioning & Communication Process

3 steps:

Choose brand identity

Begin positioning

Communicate (marketing mix):

Product / service (together with packaging, logo,design)

Price (including discounts, etc)

Place (where and how it is distributed)

Promotion (advertising above and below the line,

PR, sponsorship, etc)


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Positioning & Communication

Positioning is the development and communication of a

differential advantage that makes the organisations product

or service superior and distinctive in the perception of target

customers.

Positioning should be meaningful to the target market

segment, believable and unique (biggest, most reliable, etc).

Positioning involves giving the target market segment the

reason for buying your product.


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Positioning Map

High

High

Low

Low

Price

Quality


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Communicating the Brand (cont)

Recently, experts have stressed the inadequacy ofrelying on mass media to communicate a brand:

Cost ofmass media is increasing

Poorly targeted for todays increasingly fragmentedmarkets

Use the new media -- direct marketing, databasemarketing and building relationships (vouchers, free

samples, advice booklets build relationship withcustomer). Rather rely on these to communicatebrands successfully


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Communicating the Brand (cont)

INTERACTIVE BRAND COMMUNICATION

New phenomenon brought on by:

Reduced effectiveness of mass media advertising

Emergence of the new media

Emphasis on relationship and database marketingOther

Free telephone numbers

Care lines

Eliciting feedback (not just complaints) fromcustomers

Loyalty cards and clubs (e.g. Voyager)


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Brand Management in the New Economy

Brand used to guide all activities surrounding it

Coordinate these activitiesManage relationships with external partners and agencies(research companies, advertising agencies, and channels)

Whole organisation must understand brand

Integrated approach to brand management key issues:

Cross functional working

Company culture

Internal communication

CEOs important role to personify the brand (e.g. RichardBranson, Bill Gates, Raymond Ackerman)

The corporate brand is of increasing importance (e.g. Virgin)

the corporate brand sells the product!New corporate identities created if parent company hasinappropriate or unclear associations (Flora Food Co, Unilever)


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New Keys to Brand Building

Use ofmarketing communications (mass-market

advertising-agency model) as primary driver of corporatebrand management is fast becoming obsolete.

Replaced by an array of communications channels thatcan target increasingly narrow customer segments.

All experiences affect brand image. Customer experienceis key to brand building (e.g. Harley Davidson owner

groups, rallies)Align communication of brand to all 4 main audiences customers, investors, employees and regulators (media,public interest organisations). Align -- key to buildingbrand equity.

Communication messages need to line up withexperiences of customers.

Ensure that entire business deliver the promise implicit inthe brand (favourable advertising versus negativeservice experience the latter will be remembered)


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Class Discussion

BMW

BMW cannot afford to allow the emotional appeal ofthe brand to be displaced by purely technicaldimensions.

How can BMW build new emotional and intangiblehooks?

What do you think BMWs branding strategy should

be?


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Class Discussion

Canon

What makes the Canon story special?

Discuss / evaluate the Canon communicationstrategy


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Websites on Positioning

http://www.aniota.com/~jwhite/success0.html

Documents

Brand Corporate