Building Brands Internationally

7/30/2019 Building Brands Internationally

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Factors and Approach Methodology


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'A brand is a name, term, sign, symbol, ordesign, or a combination of them, intendedto identify the goods or services of one seller

or group of sellers and to differentiate themfrom those of competition.'


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Asset that drives premium pricing and futurecash flows

Signal of quality and a trust mark

Relationship A set of rational and emotional associations

that identify and differentiate a company orits offer

A form of self expression


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'It takes 7 to 10 times the cost and effort tosecure a new customer as it does to keep anexisting customer'

An increase in customer loyalty of only 5% canlift lifetime profits per customer by as much as95%'

'50% of customers are willing to try a newproduct from a preferred brand because of theimplied endorsement, credibility and trust.'

Customer Loyalty and Advocacy Premium Pricing 'I would buy again' 'I would highly recommend' 'I

would travel farther' 'I would wait longer' 'I wouldpay more'


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Ultimately, a brands meaning to consumers

represents the sum total of the consumers

experiences with the brand either through

direct or indirect means.


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Create superior customer experiences thatdrive unshakable loyalty, advocacy andprofitable revenue growth

Manage, protect, leverage & enhance brands Engine of innovation & ideas that drives

business


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'The business enterprise has two and onlytwo basic functions:

Marketing and innovation.

Marketing and innovation produce results; All the rest are costs.'

Said by Peter Drucker


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Economies of scale across multiple markets

Uniformity of image

Responsiveness to global customers


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The power of a brand is inversely proportional toits scope

Chevrolet, Ford Am Ex (senior, student, membership miles,

optima etc) Levis (27 different cuts custom fit 31-19%) Crest 38 SKUs 36% market share, today over 50

SKUs 25% market share only The power of a brand is not the sales generated

by the brand (competition) Overzealous brand names Vaseline intensive care

suntan lotion Gillette clear gel antiperspirant


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Contraction of a brand becomes stronger when younarrow its focus:

Starbucks corp. : a coffee shop that specializes in coffee

Toys 'R' Us : 20% of toys in US (specialty store or categorykiller) Babies 'R' US, Kids 'R' US

Narrow the focus: contracting the category not expandingit

Stock in depth: 10,000 toys versus 3,000 toys indepartment store

Buy cheap: makes money buying

Dominate the category

Microsoft 95% desktop computer operating systems

Intel 80% microprocessors

Coca-Cola 70% of cola NOKIA (paper, chemicals, rubber products, electronics,

machinery, computers, mobile phones)


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Body shop: Anita Roddick traveled the worldfor publicity, pushing ideas aboutenvironmental protection

Starbucks, Wal-Mart: Brands dont createpublicity, people do

Best way to generate publicity: be first

Band-Aid, CNN, Compaq, Gore-Tex, Time,

Hertz, Xerox, Playboy, Intel Fast development: fax vs internet


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Shift from publicity to advertising

Should leaders advertise?

Heinz Americas favorite ketchup

Budweiser, king of beers

Coca-cola the real thing

Visa, its everywhere you want to be

Almost every ad makes some type of betterproduct claim.

What happens when you say our product is theleader?

Advertising is a powerful tool not to build abrand or leadership but to maintain leadership


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Mercedes-Benz: prestige Volvo: safety BMW: fun to drive Own a category word

Kleenex is tissue Make me a Xerox copy hand me the Scotch tape Fed Ex in the delivery business (Emery Air Freight leader),

CEO narrowed its focus overnight only: Fed Ex the generic

term for overnight delivery Branding a prestige product or service: Make it more expensive than competition Find a core word for prestige Mercedes 'Engineered like no other car in the world'


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Customers disbelieve most product claims Coca-cola: the real thing Credentials will make prospects believe almost anything Leadership is the most direct way to establish

credentials Polaroid leader in instant photography but it couldnt be

stretched to conventional 35mm film against Kodak Many companies run branding programs devoid of

credentials:

Tastes great, saves money, whitens teeth Find credentials that can be exploited or create

credentials by inventing a product category The leading Mexican beer The leading ice beer


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Does quality keep time better than Swatch? Does coca-cola taste better than Pepsi? There is no correlation between success in the

market place and comparative testing For a powerful brand build a powerful perception of

quality in the minds of consumers Contraction, name, price Conventional wisdom: marketing a high quality

product at a comparable price: QUALITY STRATEGY Deliberately start at a higher price then find what

you can put in the brand to justify it Rolex made watches bigger and heavier Montblanc made pens fatter


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Xerox

Mitsubishi (corporartion, electric, motors,heavy indus., chemical, oil, materials,

estate, construction etc)


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90% of all new products in the US are lineextensions (Bud dry, light, ice)

Manufacturer approach: the volume is going

nowhere, lets increase brands to increasesale

Light, clear, healthy, fat-free line extensionsmean?


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When you broaden a brand you weaken it

Coca-cola & Pepsi-cola

Choice stimulates demand,

competition makes customers more conscious,

increases the noise level, tends to increase sales in the category

For each category,

Two major brands (Kodak-Fuji, Nintendo-PlayStation)

Similar businesses located close together (PlanetHollywood Hard Rock Caf)

Market shares higher than 50% consider launchingmultiple brands not line extensions

Coca cola 50%, Fed Ex 45% of domestic market


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General Motors, General Electric, General Foods

Generic brand name: inability to differentiatefrom competition (Natures Answer, Natures

Herb, Natures Secret, Natures Way)

Revolutionary and unlikely to be copied (Kodak,Xerox)

Take a regular word and use it out of context toconnote the primary attribute of the brand

Blockbuster video

Intelligent Chip Company Intel Corp.(Intelligent Chip Inside Intel Inside)


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Company dominates: Microsoft MicrosoftWord

Brand dominates: Tide P &G

Equal weight: Gillette Sensor

Brand names should take precedence overcompany names

Best branding strategy to use the companyname as a brand name (GE, Coca-cola, IBM)Cola itself is Coca-Cola the real thing, Whatis 'New Coke'

Microsoft part is redundant: Microsoft Excel- Excel


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Holiday Inn wanted to get into the upscalehotel segment

Invent a sub brand:

Holiday Inn Crowne Plaza Everybody thought it was too expensive for a

Holiday Inn

Remained as Crown Plaza


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A second brand strategy is not for everycompany

General Motors: Chevrolet, Pontiac, Buick,Cadillac

Let the brands fight among themselves

Each division broadened the scope of itsbrand, leading to brand confusion

Sibling strategy required top managementsupervision

Toyota Lexus (common product area, rigiddistinctions price, different not similarbrand names)


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Horizontal shape provides maximum impactfor the logo

Legibility: typeface does not express an

attribute of the brand. Rolex?, Rolls-Royce?

The trademark is often overrated.

Its the Nike name that gives meaning to the

Swoosh symbol There are only a handful of simple symbols

that make effective trademarks (Mercedesstar)


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Cola is a reddish-brown liquid, so it is one ofthe reasons Coca-cola picked red.

Pepsi picked red for the cola and blue to

differentiate. Poor choice.

The lack of a unique differentiating colormakes Pepsi invisible in the sea of Coca-cola

red. Pepsi cola is going blue


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Keep the brand narrow focus in its homecountry

Go global

Crossing a border adds value to the brand

Watches from Switzerland

Wines from France

Clothing from Italy

Need to be first The product needs to fit the perceptions of

its country of origin

Ex: Mercedes Benz , Smart - Swatch


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The market is changing!

Change the brand!

Tanqueray gin / Absolut & Stolichnaya high

end vodkas, so Tanqueray vodka was created Volvo, why limit to boring safe sedans,

introduce convertible sports cars, dilutesafety message

Limit the brand. It has to stand for something simple and

narrow in the mind.


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Changing occurs in the mind of consumer

If the brand is weak or non existent in themind, change.

If the brand has a unique and distinctperception changing is a great risk.

Kentucky Fried Chicken - KFC


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What is a Kodak?

Conventional camera and conventionalphotographic film.

The market is slowly shifting to digitalphotography.

Kodak is still investing

Kodak is investing in digital (Kodak Digital

Science)


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What is a Chevrolet?

A large, small, cheap, expensive car or truck.

What is an Atari?

Used to be a video game, tried to be acomputer

Singularity helps a brand perform its mostimportant function

Instead of a safe car ask for a Volvo

Instead for a driving machine ask for a BMW


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Establish Brand Strategy and Architecture

Determine Governance Structure

Define the Brands Identity

Establish a Distinctive Positioning Align All Touchpoints

Measure and Report Progress


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Creates the strategic framework for therelationships among the master or parentbrand and other brands in the portfolio

Drives clarity in the organization regardingthe operating philosophy for the use of thebrand and its role


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Profile of the Walt Disney Companys Branding Disney World Disney Theatrical Productions Disney Imagineering Disneyland Resorts Disney Hand Disney Cruise Line

Disney Radio Disneyland Paris/Tokyo

ABC Television ESPN Buena Vista Television Miramax Touchstone Pictures Hollywood Records

Core Essence: Wholesome Family Entertainment

Careful application of the Disney master brand allows it toremain true to its core essence while penetrating newmarkets using stand-alone brands.


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Governance structure must align with andsupport brand strategy

Degree of centralization determines level of

control and flexibilityGovernance model must focus on executional

challenges and core problems inherent inmanaging a global brand


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Brand Essence

Summary of the brands identity the heartand soul of the brand.

Core Identity- Core values, keycompetencies and associations that remainconsistent across products, markets andthrough time.

Extended Identity - Elements that providetexture and completeness; personality,organization, product characteristics.


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What is positioning?

Grows out of the brands core identity

The case you make which establishes your

relevance and superiority vs. thecompetition.

It is the space you want to occupy on theconsumers mental map that distinguishes

your brand while redefining your competitors


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Brand Essence -

Performance

Passion for driving

Core Identity Elements Heritage/engineering Quality

Styling Logo -

Extended Identity

Elements-

Fun Youthful Nimble Status

'The Ultimate Driving Machine'


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Merrill Lynch Problem

Tagline 'Tradition of Trust' did not work in thesociety where banks are not trusted.

Solution - Adapt the tagline to position ML asan educator whose experience deservestrust.

Merrill Lynch Bull in Russia

Russians saw nothing but food in the realisticdepiction of Merrill Lynch 'Bull' symbol

Solution - A highly stylized version of the logowas developed


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Taking into account Chinas 'one-child'population control policy,

the familiar Allstate 'good hands' symbol

(which depicted a typical two-child Americanfamily) was

modified to reflect the reality of consumerslives in China.

Making an American Brand Relevant in China


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When Coca-Cola was first introduced into theChinese market, Chinese characters selectedsounded like Coca-Cola but actually meant, 'bitethe wax tadpole.'

In Russian, 'enjoy' was changed to 'drink,'

because 'enjoy' has a particular sensualconnotation, in that language, that doesnt applyto soft drinks.

Keeping The Classic Look and Taste Worldwide For all non-Roman alphabets such as Arabic,

Cyrillic, Greek & many others, unique,proprietary Coca-Cola typefaces were createdthat are culturally appropriate and in sync withthe companys global image.


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Several years ago, Mitsubishi planned tointroduce its popular European SUV, the'Pajero,' in North and South America

Although the word 'pajero' carries nonegative connotations in the CastilianSpanish spoken in parts of Europe, in LatinAmerican slang the term has a seriouslyderogatory sexual meaning

The vehicle was renamed and released in theAmericas as the 'Montero' averting apotential global branding disaster


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Every touchpoint with customers or prospects is anopportunity to reinforce brands position & coremessages everywhere the brand is available.

Critical to understand and control all touchpointsacross the entire customer experience from thepre-purchase, to purchase, to post-purchaseexperience.

Given instantaneous availability of information andcommunications, news of a superior customerexperience will travel fast as will news of a badexperience or product


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Create an overarching dashboard on the strengthand vitality of the brand relative to competitorsin each market

Measure interaction with brand at each

touchpoint Assess premium brand is capable of

commanding.

Gauge level of preference and loyalty for brand

Reward and recognize marketplace successes Share results across markets and regularly with

senior management

Refine strategies and set goals based on findings


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Be wary of brand extensions

Seek local market input get out of the ivorytower

No single approach is right in all instances

Ensure employees are immersed in your brandand understand their obligations

Share best practices and insights across markets

Align management with your brand goals

Strategy is about making choices Intensely focus on execution

Never underestimate the power of localcompetitors

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Building Brands Internationally