PSU - Global Brand Managemement - Alain Hutinel. 1 Welcome to Global Brand Management To-day Getting acquainted. Me - you – Goals – How we are going to

PSU - Global Brand Managemement - Alain Hutinel.

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Welcome to Global Brand Welcome to Global Brand ManagementManagement

• To-day

Getting acquainted. Me - you– Goals– How we are going to work

(syllabus)– Some rules

Part I : Investigating the Brand


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Me … Me … Alain Hutinel

Education– ESSEC– MBA Keller Graduate School of Business (Indiana

University)

Experience20 years in FMCG Marketing, Colgate Palmolive & Quaker Oats2 years MD of an IT Network Cy15 years of Consulting and Teaching

Major interests…. Teaching internationallyMarketing Communications and Brand Management…. Discovering new ways of marketing

[email protected]@pdx.edu

My role :A learning coach

Office hours : 260DTU pm; W; TH


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You… You… Name …

Origin …

Special Topics/ Interest in Brands …

Ambition …..

> E-mail to me with personal e-mail address

Your role : to build your own brand model so as to better anticipate what you think will happen


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Course main TopicsCourse 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 Cross-cultural Branding


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TO-DAYTO-DAYInvestigating,

understanding the Brand Importance to the firm

Defining the BrandThe Brand SystemDefining the Brand rolesBrand Power and Value


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« Ultimately, Brands are all « Ultimately, Brands are all about trust …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, Hellmann’s,

SlimFast and Ben & Jerry on its plate. »

Mukul Pandya, WSJ.


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Key trends affecting brand Key trends affecting brand management … & management … &

marketing !marketing ! Consumption, societal & cultural multi-Consumption, societal & cultural multi-fragmentationfragmentation

Less loyal / more « intelligent (?) » buyer Less loyal / more « intelligent (?) » buyer Self value-building consumptionSelf value-building consumption Search for emotionsSearch for emotions Multiplication of offers & chanels Interactive communication technologiesInteractive communication technologies Markets saturationMarkets saturation Globalization Globalization Loss of credibility of traditional media Loss of credibility of traditional media

contactscontacts


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From USP to HSPFrom 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)


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In this brand (!) new In this brand (!) new world, What world, What ISIS a Brand a Brand

and What and What DOESDOES a a Brand do?Brand do?

??


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Think of Brands in your own Think of Brands in your own lifelife

1 - Think of how you became aware 1 - Think of how you became aware of them, why you bought them, why of them, why you bought them, why you prefer them, how you feel about you prefer them, how you feel about them ... them ...

2 - List them as they come to your 2 - List them as they come to your mind mind

3 - Chose one brand you are very 3 - Chose one brand you are very familiar with :familiar with :

. What does this Brand do for you?. What does this Brand do for you?

. What does it MEAN to you?. What does it MEAN to you?

. How do you relate to it ? …. How do you relate to it ? … 4 – Main characteristics of a world 4 – Main characteristics of a world

without Brands ?without Brands ?


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The Brand is an Open System. The Brand is an Open System.

.Scope.Attributes

.Uses.Quality/

Value.Functional

Benefits

Organization’s associations

Personality

SymbolsOrigin

User Imagery

Relationships withcustomers

Self-expressive benefits

Emotional benefits

(Core) Offer(Tangible Products & Services)

Codes/Tone

Competition

Skills

Name

CorporationEconomy …

Chanels, contacts…

TribesCulturesGroups …


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What is a Brand?What is a Brand?

Attributes Benefits Values

Culture

User

Personality


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““What is the best …”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 ?


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This Brand System This Brand System interacts interacts AS ...AS ...

1) .. A SOCIO-ECONOMIC AGENTA SOCIO-ECONOMIC AGENT

2) .. A CORPORATE ASSETA CORPORATE ASSET

3) .. A STRATEGIC MARKETING A STRATEGIC MARKETING TOOLTOOL

4) .. A COMMUNICATING &A COMMUNICATING & SELLING AGENT SELLING AGENT


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THE BRAND AS A SOCIO-ECONOMIC THE BRAND AS A SOCIO-ECONOMIC AGENTAGENT

• PART OF EACH INDIVIDUAL’S AND PART OF EACH INDIVIDUAL’S AND SOCIETAL SOCIETAL GROUPS ’ SET OF GROUPS ’ SET OF REFERENCES REFERENCES • A POWERFUL SOCIAL DRIVERA POWERFUL SOCIAL DRIVER• A GLOBAL CIMENTA GLOBAL CIMENT• A VALUE ADDING ECONOMIC AGENTA VALUE ADDING ECONOMIC AGENT


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Coca Cola 2002.jpg


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Brand Strategic Role Brand Strategic Role

Brand Equity

Cash flowbooster

ConsumerResponseBooster


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THE BRAND AS A CORPORATE ASSETTHE BRAND AS A CORPORATE ASSET

• A PROTECTED PROPERTY (PROTECTED PROPERTY (owner's right to use))

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

• MARKETING « NON TANGIBLE » ASSETMARKETING « NON TANGIBLE » ASSETprecisely measurable and valuable precisely measurable and valuable

(when (when brand is on sale) : brand is on sale) : STRENGTH , LEADERSHIP & EQUITY, ie STRENGTH , LEADERSHIP & EQUITY, ie capacity to justify price.capacity to justify price.


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Brand Asset ValueBrand Asset Value

Source : K.L.Keller


BRAND EQUITYBRAND EQUITYas 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


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Brand (Market) Performance Brand (Market) Performance ValuationValuation

DDB Pricing StudiesConjoint AnalysisInterbrand Valuation modelY&R Brandasset ValuatorIntangible Value ValuatorSometimes stock market value


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The Landor Power IndexThe Landor Power Index

Power = strengthPower = strength 2 synthetic 2 synthetic

measuresmeasuresAwarenessAwarenessEsteemEsteem

«Share of Mind» «Share of Mind» idea idea (cf. Share of Market Share of Voice, Share of Requirements ....)

Most influencing Most influencing factor : brand factor : brand perceived perceived qualityquality

need need timetime


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Interbrand BRAND VALUE Interbrand BRAND VALUE AttributesAttributes

Leadership (25%)Market share, Awareness, Positioning,

Competitor ProfileStability (15 %)

Longevity Coherence Consistency,

brand Equity, risksMarket (10 %)

What market, Volatility size

Market dynamics BarriersInternationality (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


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Interbrand Ranking and Ratio of Brand value to Firm Market Value

SM % BRank $ 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 672 Marlboro 39 Microsoft 57 Microsoft 65 Microsoft 64 276 23 Microsoft 65 Microsoft 613 IBM 17 IBM 44 IBM 53 IBM 51 138 37 IBM 52 IBM 544 Motorola 15 GE 34 GE 42 GE 41 309 13 GE 42 GE 445 HP 13 Ford 32 Nokia 35 Intel 31 185 17 Intel 31 Intel 336 Microsoft 12 Disney 32 Intel 35 Nokia 30 68 44 Nokia 29 Disney 277 Kodak 12 Intel 30 Disney 33 Disney 29 47 62 Disney 28 McDonald's 258 Budweiser 11 McDonald's26 Ford 30 McDonald's 26 38 68 McDonalds 25 Nokia 249 Kellogg's 11 AT&T 24 McDonald's 25 Marlboro 24 Marlboro 22 Toyota 23

10 Nescafé 10 Marlboro 21 AT&T 23 Mercedes 21 Mercedes 21 Marlboro 2211 Intel 10 Nokia 21 Marlboro 22 Ford 20 32 63 Toyota 21 Mercedes 2112 Gillette 10 Mercedes 18 Mercedes 22 Toyota 20 100 20 HP 20 HP 2113 Pepsi 8 Nescafé 18 Citibank 19 Citibank 18 223 8 Citibank 19 Citibank 2014 GE 7 HP 17 Toyota 19 HP 17 58 29 Ford 17 Amex 1815 Levi's 7 Gillette 16 HP 18 Amex 16 57 28 Amex 17 Gillette 1716 Frito-Lay 7 Kodak 15 Cisco 17 Cisco 16 116 14 Gillette 16 Cisco 1617 Compaq 7 Amex 17 AT&T 16 43 37 Cisco 16 BMW 1618 Bacardi 7 Gillette 15 Honda 15 42 36 Honda 16 Honda 1519 Campbells 7 Merryll Lynch 15 Gillette 15 38 39 BMW 15 Ford 1420 Pampers 6 BMW 11 Sony 15 BMW 14 29 48 Sony 13 Sony 1321 Honda 15 Sony 14 53 26 Nescafe 12 Samsung 1222 BMW 14 Nescafe 13 Budweiser 12 pepsi 1223 Nescafé 13 Oracle 12 44 27 Pepsi 12 Nescafe 1224 Compaq 12 Budweiser 11 45 24 Oracle 11 Budweiser 1225 Oracle 12 Merrill Lynch 11 35 31 Samsung 11 Dell 1226 Budweiser 11 Morgan St. 11 50 22 Morgan St. 11 Merrill Lynch 11.527 Kodak 11 Compaq 10 Merrill lynch 11 Morgan St. 11.528 Merck 10 pfizer 10 217 5 Pfizer 11 Oracle 1129 Nike 8 Nintendo 9 J.P. Morgan 10 72 14 Dell 10 Pfizer 10.630 Pfizer 9 Kodak 10 10 100 Merck 9 J.P. Morgan 1031 Gap 9 Dell 9 70 13 JPMorgan 9 Nike 9.332 Dell 8 Nintendo 9 20 45 nintendo 8 Merck 8.833 Golman S. 8 Mercx 9 130 7 Nike 8 HSBC 8.734 Nike 8 Samsung 8 Kodak 8 SAP 8.335 VW 7 Nike 8 SAP 8 Canon 8.136 Ericsson 7 Gap 7 13 54 Gap 8 kellogg's 837 Apple 4 Heinz 7 Heinz 7 HSBC 8 Goldman S. 838 Levi's 7 VW 7 21 33 Kellogg's 7 Gap 7.939 Kellog's 7 Goldman S. 7 36 19 Canon 7 Siemens 7.540 MTV 7 Kellog's 7 15 47 Heinz 7 Ikea 7.241 Canon 7 Louis Vui. 7 26 27 Goldman S. 7 HD 7.142 Samsung 6 SAP 7 33 21 VW 7 Heinz 743 SAP 6 Canon 7 34 21 Ikea 7 Apple 6.944 Ikea 4 Pepsi 6 Ikea 7 HD 7 Louis Vui. 6.645 Xerox 6 Pepsi 6 92 7 Louis Vui. 7 UBS 6.546 Ikea 6 HD 6 16 38 MTV 6 Nintendo 6.547 Pizza Hut 6 MTV 6 L'Oreal 6 MTV 6.548 HD 6 Pizza Hut 6 Xerox 6 VW 6.449 Apple 5 KFC 5 KFC 6 L'Oreal 5.950 Gucci 5 Apple 5 Apple 6 Accenture 5.851 KFC 5 Xerox 5 34 #### Pizza Hut 5 Xerox 5.752 Ralph Lauren2 Gucci 5 24 #### Accenture 5 Wrigley's 5.453 Accenture 5 Gucci 5 Kodak 5.254 L'Oreal 5 48 10 Kleenex 5 KFC 5.155 Kleenex 5 Wrigleys 5 Pizza Hut 556 Sun 5 22 23 Colgate 5 Colgate 557 Wrigley's 5 Avon 5 Kleenex 4.9

2003 20042002Interbrand value1995 1999 2001


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Heinz Ketchup - 2000


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THE BRAND AS A KEY STRATEGICTHE BRAND AS A KEY STRATEGIC MARKETING TOOLMARKETING TOOL

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

* SUPPORT OF LONG-TERM TIES WITH PEOPLE* SUPPORT OF LONG-TERM TIES WITH PEOPLE

* ALLOWS LOWER COST for NEW ENTRIES* ALLOWS LOWER COST for NEW ENTRIES

* UNIQUE SPOKESMAN TO ALL PUBLICS* UNIQUE SPOKESMAN TO ALL PUBLICS

* * JUSTIFIES HIGHER PRICE & MARGINSJUSTIFIES HIGHER PRICE & MARGINS


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The Brand Value ChainThe Brand Value Chain

Value Stages Marketing

programs Customer Mindset Market

Performance Shareholder Value

Value Multipliers Programs Quality Market Place &

Competition Conditions

Investor Sentiment


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Brand is an experienceBrand is an experience A brand is essentially a container for a costumer’s

complete experience with the offer and the company. (Sergio Zyman)


The Leading Brands: 1925 and 1985The Leading Brands: 1925 and 1985 Product Leading Brand 1925 Current Position 1985 Bacon Swift Leader Batteries EvereadyLeaderBiscuits Nabisco LeaderBreakfast cereal Kellogg LeaderCanned fruit Del Monte LeaderChewing gum Wrigley LeaderChocolates Hershey No. 2Flour Gold Medal LeaderMint candies Life Savers LeaderPaint Sherwin-Williams LeaderPipe tobacco Prince Albert LeaderRazors Gillette LeaderSewing machines Singer LeaderShirts Manhattan No. 5Shortening Crisco Leader Soap Ivory Leader Soft drinks Coca-Cola Leader Soup Campbell Leader Tea Lipton Leader Tires Goodyear Leader Toothpaste Colgate No. 2


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RATE OF LOYALTYCAPACITY T O BUILD IT

LEVEL AND SCOPE OFAW ARENESS

LEVEL & DIST INCT IVENESSOF PERCEIVED QUALITY

M EASURED ST RENGT H OFIM AGE AND IDENT ITY

UNIQUENESS OF PERCEIVEDPOSIT IONNING

PREFERENCE POW EROF PERCEIVED BENEFITS

BRAND EQUIT Y & MARKETING ASSETS


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Building Brand EquityBuilding Brand Equity

BrandBrand EquityEquity

(Name & (Name & Symbol)Symbol)

Value To CustomerValue To Customer• Info ProcessingInfo Processing•Confidence in BuyingConfidence in Buying•Use SatisfactionUse Satisfaction

Value To FirmValue To Firm• Helps ProgramsHelps Programs• Brand LoyaltyBrand Loyalty•PricesPrices•Brand ExtensionsBrand Extensions•Trade LeverageTrade Leverage•Competitive Competitive AdvantageAdvantage

NameNameAwarenessAwareness

PerceivedPerceived QualityQuality

BrandBrandAssociationsAssociations

OtherOtherBrandBrandAssetsAssetsBrandBrand

LoyaltyLoyalty


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P & G - Mr Propre


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THE BRAND AS A THE BRAND AS A COMMUNICATING COMMUNICATING & SELLING AGENT& SELLING AGENT

* A RELATIONSHIP ACTOR/BUILDER* A RELATIONSHIP ACTOR/BUILDER

* AN INFLUENCER* AN INFLUENCER

* IT GIVES MEANINGS TO * IT GIVES MEANINGS TO PRODUCTS/SERVICES ... PRODUCTS/SERVICES ...

* ... AND A CREATOR OF « NEW » WORLDS* ... AND A CREATOR OF « NEW » WORLDS


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The best Performances last longest.


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From Traditional Marketing From Traditional Marketing Functions of the Brand Name Functions of the Brand Name

…… IdentificationIdentification

Expresses the offer and is easily seenExpresses the offer and is easily seen PracticalityPracticality

Saves times/energy thru repeat Saves times/energy thru repeat purchase & renewed satisfactionpurchase & renewed satisfaction

Guarantee of qualityGuarantee of quality Has reputationHas reputation Has social recognitionHas social recognition Pleases you Pleases you


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… … to a powerful societal to a powerful societal system that … sellssystem that … sells

… … ie :ie : exerts influences in the market placeexerts influences in the market place changes consumers’ wants and needschanges consumers’ wants and needs sets ideals and standardssets ideals and standards helps/facilitates choicehelps/facilitates choice provides purchase reassuranceprovides purchase reassurance reduces after-choice dissonancereduces after-choice dissonance

…………


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……..

gives meanings and identity to gives meanings and identity to what we use & buywhat we use & buy

helps us build our self-identityhelps us build our self-identity provides a symbolic language provides a symbolic language

through which we can express through which we can express ourselves in society and be ourselves in society and be recognized and understood by recognized and understood by othersothers

creates a longlasting relationship creates a longlasting relationship with « consumers »with « consumers »


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So, a modern brand is So, a modern brand is

A « persona » that overlays and A « persona » that overlays and includes the physical includes the physical products/servicesproducts/services

the sum of fundamental values and the sum of fundamental values and attributes ascribed to it by peopleattributes ascribed to it by people

the entity that the consumers the entity that the consumers construct from the products’ construct from the products’ meanings, symbols and images that meanings, symbols and images that they perceive as defining the brand.they perceive as defining the brand.


42Evian, approved spring of youth for your body.

Evian Water brings health to all growing bodies


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US - Evian. l’Original. Approved by your body as a source of youth.


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Many different types of Many different types of brands ?brands ?

B2B B2C Web Trade Local Regional National International Worlwide (meta)

Corporate Commercial Non-business (?)

– Countries – Official bodies– Charity org.– Politics/Polticians– …


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Nestle Branding TreeNestle Branding Tree7500 Local Brands

– Solis, Texicana, Rocky140 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


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Nestlé Branding Tree


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SARA LEE BRANDSSARA LEE BRANDS25,000 brands registered worldwide, 80% in

use.Sara Lee is eliminating R&D & Production to

focus on brand development

GLOBAL

REGINAL

LOCAL BRANDS

Sara LeeBrandHierarchy


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NEW BRAND NEW BRAND MANAGEMENT …MANAGEMENT …

From expressing property, origin, attributes, benefits ......

to ..... To communicating ..... To communicating

meanings, sharing values meanings, sharing values that help self-identity that help self-identity buil-up and societal buil-up and societal belongingbelonging


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How do brands work ?How do brands work ?The Automotive Industry/Impor-The Automotive Industry/Impor-

tance of Marque tance of Marque CaseCase Read article «The Read article «The importance of marque»importance of marque»

Identify how, when, why, Identify how, when, why, Brand/marque influences Brand/marque influences the decision-making the decision-making process & choice in the process & choice in the different segments/clustersdifferent segments/clusters

Sort rational and emotional Sort rational and emotional influences influences

Apply to your brand Apply to your brand Prepare presentationPrepare presentation


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For Thursday july 21For Thursday july 21

INDIVIDUAL WORK Read reading # 1 Prepare for class

discussion readings # 2, 7 or 9.

(or 5, 6, 8)

GROUP WORK Choose 2 competitive

brands for Audit & submit

Documents

PSU - Global Brand Managemement - Alain Hutinel. 1 Welcome to Global Brand Management To-day Getting acquainted. Me - you – Goals – How we are going to