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STRATEGIC BRAND STRATEGIC BRAND MANAGEMENTMANAGEMENT

BUILDING, MEASURING, AND MANAGING BUILDING, MEASURING, AND MANAGING BRAND EQUITYBRAND EQUITY

Chapter 1Chapter 1Brands & Brand ManagementBrands & Brand Management

Kevin Lane KellerKevin Lane KellerAmos Tuck School of BusinessAmos Tuck School of Business

Dartmouth CollegeDartmouth College

Slides re-arranged by Polboon N.

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Product VS BrandProduct VS Brand

A A productproduct is anything that can be offered to is anything that can be offered to the market for attention , acquisition, use, the market for attention , acquisition, use, or consumption that might satisfy a need or consumption that might satisfy a need or want. Thus, a product can be a physical or want. Thus, a product can be a physical good, service, organization, place or ideas. good, service, organization, place or ideas.

A A brandbrand is a product but adds other is a product but adds other dimensions that differentiate it in some dimensions that differentiate it in some way from other products designed to way from other products designed to satisfy the same need. satisfy the same need.

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What is a Brand?What is a Brand?

A A brandbrand is a name, term, sign, symbol, is a name, term, sign, symbol, or design which is intended to or design which is intended to identifyidentify the goods or services of one seller or the goods or services of one seller or group of sellers and to group of sellers and to differentiatedifferentiate them from those of competitors.them from those of competitors.

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Examples of brands of computer products

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Brand ElementsBrand Elements

A variety of brand elements can be chosen that A variety of brand elements can be chosen that inherently enhance brand awareness or facilitate inherently enhance brand awareness or facilitate the formation of strong, favorable, and unique the formation of strong, favorable, and unique brand associations:brand associations:

Brand NameBrand Name LogoLogo SymbolSymbol Character Character PackagingPackaging SloganSlogan

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Why do brand matter?Why do brand matter?To consumersTo consumers

Identification of sources of productIdentification of sources of product Assignment of responsibility to product Assignment of responsibility to product

maker.maker. Risk reducerRisk reducer Search cost reducerSearch cost reducer Symbolic deviceSymbolic device Signal of qualitySignal of quality Promise or bond with product or makerPromise or bond with product or maker

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Why do brand matter?Why do brand matter?To ManufacturerTo Manufacturer

Means of identification to simplifying Means of identification to simplifying handling and tracing.handling and tracing.

Means of legally protecting unique feature.Means of legally protecting unique feature. Signal of qualitySignal of quality Means of endowing products with unique Means of endowing products with unique

associations.associations. Sources of competitive advantageSources of competitive advantage Sources of financial returns.Sources of financial returns.

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Branding Challenges & Branding Challenges & OpportunitiesOpportunities

Knowledgeable consumers.Knowledgeable consumers. Brand ProliferationBrand Proliferation Media FragmentationMedia Fragmentation Increased competitionIncreased competition Increased costs of introducing new Increased costs of introducing new

product or supporting existing product.product or supporting existing product. Greater accountabilityGreater accountability

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Brand Elements Choice Criteria:Brand Elements Choice Criteria:General ConsiderationsGeneral Considerations

MemorableMemorable Easily RecognizedEasily Recognized Easily RecalledEasily Recalled

MeaningfulMeaningful Credible & Credible &

SuggestiveSuggestive Rich Visual & Verbal Rich Visual & Verbal

ImageryImagery AppealingAppealing

Fun & InterestingFun & Interesting AestheticsAesthetics

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Brand Elements Choice Criteria:Brand Elements Choice Criteria:General Considerations General Considerations (continue)(continue)

AdaptableAdaptable Flexible & Flexible &

UpdateableUpdateable

ProtectableProtectable LegallyLegally CompetitivelyCompetitively

TransferableTransferable Within & Across Within & Across

Product CategoriesProduct Categories Across Across

Geographical Geographical Boundaries & Boundaries & CulturesCultures

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Can anything be branded? Can anything be branded?

Physical goodsPhysical goods ServicesServices RetailersRetailers On-line product On-line product On-line serviceOn-line service PeoplePeople OrganizationOrganization Sports, Arts, EntertainmentSports, Arts, Entertainment Geographic locationGeographic location IdeasIdeas

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Brand ValueBrand ValueExamples of brand value 2001 ( Million Examples of brand value 2001 ( Million

US$)US$)

Coca-cola Coca-cola 6969MicrosoftMicrosoft 6565IBMIBM 5252GEGE 4242NokiaNokia 3535IntelIntel 3434DisneyDisney 3232McDonaldMcDonald 2525SonySony 1515HondaHonda 1414BMWBMW 1313

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Keys to enduring Brand Keys to enduring Brand LeadershipLeadership

Vision of mass marketVision of mass market Managerial persistenceManagerial persistence Financial commitmentFinancial commitment Relentless innovationRelentless innovation Asset LeverageAsset Leverage

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Strategic Brand Strategic Brand ManagementManagement

Brand VisionBrand Vision

Brand ValuesBrand Values& Brand Positioning& Brand Positioning

Brand Marketing objectivesBrand Marketing objectivesBrand Marketing strategiesBrand Marketing strategies

Brand Marketing ProgramsBrand Marketing Programs

Implementing brand marketing program Implementing brand marketing program

Measuring brand performanceMeasuring brand performance

Growing and sustaining brand equityGrowing and sustaining brand equity

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Strategic Brand Management Strategic Brand Management ProcessProcess

1.1. Identifying brand vision, core brand Identifying brand vision, core brand values and brand positioning.values and brand positioning.

2 .2 . Planning and implementing brand Planning and implementing brand marketing programsmarketing programs

3.3. Measuring brand performanceMeasuring brand performance

4.4. Growing and sustaining brand Growing and sustaining brand equityequity

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Strategic Brand Management ProcessStrategic Brand Management Process

Mental mapsMental mapsCompetitive frame of referenceCompetitive frame of referencePoints-of-parity and points-of-differencePoints-of-parity and points-of-differenceCore brand valuesCore brand valuesBrand mantraBrand mantra

Mixing and matching of brand elementsMixing and matching of brand elementsIntegrating brand marketing activitiesIntegrating brand marketing activitiesLeveraging of secondary associationsLeveraging of secondary associations

Brand Value ChainBrand Value ChainBrand auditsBrand auditsBrand trackingBrand trackingBrand equity management systemBrand equity management system

Brand-product matrixBrand-product matrixBrand portfolios and hierarchiesBrand portfolios and hierarchiesBrand expansion strategiesBrand expansion strategiesBrand reinforcement and revitalizationBrand reinforcement and revitalization

KEY CONCEPTSKEY CONCEPTSSTEPSSTEPS

Grow and SustainGrow and SustainBrand EquityBrand Equity

Identify and EstablishIdentify and EstablishBrand Positioning and ValuesBrand Positioning and Values

Plan and Implement Plan and Implement Brand Marketing ProgramsBrand Marketing Programs

Measure and InterpretMeasure and InterpretBrand PerformanceBrand Performance

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Brand VisionBrand VisionCore brand value & PositioningCore brand value & Positioning

Brand visionBrand vision What the brand should What the brand should stand for in the future. stand for in the future.

Core brand valuesCore brand values set of abstract set of abstract associations that characterize a brand. associations that characterize a brand.

A brand mantra is a short 3-5 words A brand mantra is a short 3-5 words expression of the most important aspect expression of the most important aspect of a brand and its core brand values. of a brand and its core brand values.

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Brand VisionBrand VisionCore brand value & PositioningCore brand value & Positioning

Brand PositioningBrand Positioning the act of designing the act of designing the company’s offer and image so that it the company’s offer and image so that it occupies a distinct and values placed in occupies a distinct and values placed in the target consumer’s mind. the target consumer’s mind.

The goal is to locate the brand in the minds The goal is to locate the brand in the minds of consumers.of consumers.

Competitive brand positioning Competitive brand positioning creating creating brand superiority in the minds of brand superiority in the minds of consumers. consumers.

Brand PositioningBrand Positioning a specification of a specification of brand core values and brand mantra. brand core values and brand mantra.

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Brand EquityBrand EquityCustomer-based Brand Customer-based Brand

EquityEquity

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Brand EquityBrand Equity

Brand Equity Brand Equity the added values endowed the added values endowed

to product or serviceto product or service..

Awareness

Brand AwarenessBrand Awareness

Brand Image / Brand salienceBrand Image / Brand salience

Brand Experiences /Brand Experiences /Brand UsersBrand Users

Brand loyaltyBrand loyalty

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The Concept of The Concept of Customer-Based Brand EquityCustomer-Based Brand Equity

Brand SalienceBrand SalienceBrand awarenessBrand awareness

FeelingFeelingJudgmentJudgment

Brand ImageryBrand ImageryBrand Brand PerformancePerformance

ResonanceResonance

Brand RelationshipBrand Relationship(What about you and me?)(What about you and me?)

Brand responseBrand response(What about you?)(What about you?)

Brand MeaningBrand Meaning(what are you?)(what are you?)

Brand IdentityBrand Identity(Who are you?)(Who are you?)

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The Concept of The Concept of Customer-Based Brand EquityCustomer-Based Brand Equity

Category identificationCategory identification

Warm, secureWarm, secureFun, excitementFun, excitementSocial approval, etc. Social approval, etc.

QualityQualityCreditabilityCreditabilitySuperioritySuperiority

Profiles, usage,Profiles, usage,Personality & valuesPersonality & valuesExperiencesExperiences

Product characteristicsProduct characteristicsEffectiveness, ReliabilityEffectiveness, Reliability

Design ,priceDesign ,price

LoyaltyLoyaltyCommitmentCommitmentEngagementEngagement

Brand RelationshipBrand Relationship(What about you and me?)(What about you and me?)

Brand responseBrand response(What about you?)(What about you?)

Brand MeaningBrand Meaning(what are you?)(what are you?)

Brand IdentityBrand Identity(Who are you?)(Who are you?)

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Benefits of Benefits of Brand EquityBrand Equity

Enjoy greater brand loyalty, usage, and Enjoy greater brand loyalty, usage, and affinityaffinity

Command larger price premiumsCommand larger price premiums Receive greater trade cooperation & supportReceive greater trade cooperation & support Increase marketing communication Increase marketing communication

effectivenesseffectiveness Yield licensing opportunitiesYield licensing opportunities Support brand extensionsSupport brand extensions..

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Beverage

Water Others

Non-Alcoholic Alcoholic

Wine

Beer

DistilledSpirits

Juices

Milk

Hot beverage

Soft drinks

?

?

BeverageBeverageCategory Category HierarchyHierarchy

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The Key to BrandingThe Key to Branding

For branding strategies to be For branding strategies to be successful, consumers must be successful, consumers must be convinced that there are meaningful convinced that there are meaningful differences among brands in the differences among brands in the product or service category.product or service category.

Consumer must Consumer must notnot think that all think that all brands in the category are the same.brands in the category are the same.

PERCEPTION = VALUEPERCEPTION = VALUE

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Discussion WorkshopDiscussion WorkshopProduct & BrandProduct & Brand

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Topics of discussion Topics of discussion Assignment: Students bring a product or a brochure of product Assignment: Students bring a product or a brochure of product

or service to discuss in classor service to discuss in class..

1.1. What product / service ? What brand?What product / service ? What brand?2.2. What product category? What market?What product category? What market?3.3. Who are in the market? Who are in the market? 4.4. What do you know about the category?What do you know about the category?5.5. What could be the consumer expectation from this What could be the consumer expectation from this

category?category?6.6. What do you know about the chosen product/service?What do you know about the chosen product/service?7.7. What you should know about the product/service if you are What you should know about the product/service if you are

a brand / product manager? a brand / product manager? 8.8. What is the product benefit?What is the product benefit?9.9. What is the consumer benefit of the product?What is the consumer benefit of the product?10.10. How does this brand different from others?How does this brand different from others?11.11. What it the brand mantra? Slogan? Is it convincing? What it the brand mantra? Slogan? Is it convincing?

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Next ClassNext ClassSession 3: 17 November 2550Session 3: 17 November 2550

What do Brand Manager Actually What do Brand Manager Actually do? do?

Guest lecturerGuest lecturerKhun Anan TeerawichakulKhun Anan Teerawichakul

Brand Manager : VitamilkBrand Manager : Vitamilk

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Session 4: 24 November 2550Session 4: 24 November 25501.1. Market AnalysisMarket Analysis

Reading: Lehman & Wine Chapter 3 & 4Reading: Lehman & Wine Chapter 3 & 42.2. Submit individual paperSubmit individual paper

3. Be prepared to discuss market analysis of a 3. Be prepared to discuss market analysis of a product market in class.product market in class.

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Individual Assignment Individual Assignment

Choose 1 of the following topics, do some Choose 1 of the following topics, do some studystudy from books, internet, market survey, talking to from books, internet, market survey, talking to consumers, talking to sellers, etc. and consumers, talking to sellers, etc. and writewrite a a short report, 4 to 5 pages. Please do not copy short report, 4 to 5 pages. Please do not copy each other.each other.

TOPICSTOPICS Product X: Initial Market & Product InformationProduct X: Initial Market & Product Information Consumers’ Information and the consumer Consumers’ Information and the consumer

insights – Product Category Xinsights – Product Category X

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Individual Assignment Individual Assignment

Product X: Initial Market and Product Information Product X: Initial Market and Product Information Type of product / serviceType of product / service Size of market and potential ( if information is Size of market and potential ( if information is

available)available) Key Players in the market Key Players in the market Leading BrandLeading Brand Market SegmentationMarket Segmentation Distribution structure Distribution structure Market influencers Market influencers

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Individual Assignment Individual Assignment

Consumers’ Information and the consumer Consumers’ Information and the consumer insights – Product Category Xinsights – Product Category X Type of product / serviceType of product / service The end-consumers or end-users The end-consumers or end-users The purchasers & the influencersThe purchasers & the influencers The end-consumer's needs, desires, preferences. The end-consumer's needs, desires, preferences. The general product expectation.The general product expectation. The potential ‘added-value’ related to the productThe potential ‘added-value’ related to the product Use and usage behavior Use and usage behavior What else should we know about the consumers of the What else should we know about the consumers of the

studied products. studied products.

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Group Work Assignment Group Work Assignment

1 Product and pricing Strategy of a 1 Product and pricing Strategy of a food product Xfood product X

2 Product and pricing Strategy of a 2 Product and pricing Strategy of a consumer product Xconsumer product X

3 Product and pricing strategy of a 3 Product and pricing strategy of a Food orFood or consumer consumer service business Xservice business X

4 A 4 A Market AnalysisMarket Analysis of Product Category X. of Product Category X.

5 A 5 A SWOT analysisSWOT analysis of a consumer product X of a consumer product X

Explain the process how the assignment is done. (20%)Explain the process how the assignment is done. (20%)

Report maximum of 8 pages (50%)Report maximum of 8 pages (50%)

Presentation 15 minutes for each group (30%)Presentation 15 minutes for each group (30%)

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Mid-Term ExamMid-Term ExamBe prepare to express your knowledge about Be prepare to express your knowledge about Basic Marketing PrinciplesBasic Marketing Principles Product Management conceptProduct Management concept Brand, Brand Equity, Brand Management Brand, Brand Equity, Brand Management

conceptconcept Market AnalysisMarket Analysis

Midterm exam period 14-24 December Midterm exam period 14-24 December 25502550