Advanced Brand Advanced Brand

Management Management RevisionRevision

9 May 20119 May 2011

““In the 21In the 21stst century, branding ultimately will century, branding ultimately will

be the only unique differentiator between be the only unique differentiator between

companies. companies.

Brand equity is now a key asset.Brand equity is now a key asset.””Fortune magazine, 1997Fortune magazine, 1997

“The corporations which will prosper in the new

millennium will be brandbrand--centric.centric. The brand will

reside at the centre of the corporation; building it

will be key to business strategy rather than the

other way round.

Brand-owning companies already outperform

those that don’t own brands - integrating brands

into strategy will now be the crucial separator”

Chuck Chuck BrymerBrymer, CEO , CEO InterbrandInterbrand

The Changing World of The Changing World of

BrandingBranding

Odd question since the practice of branding is hundreds of yearsOdd question since the practice of branding is hundreds of years old.old.

Yet today we brand Yet today we brand

�� football teamsfootball teams

�� charitiescharities

�� UtilitiesUtilities

�� Pop starsPop stars

�� GovernmentsGovernments

�� CountriesCountries

So just what is a brand?

The explosion of brandingThe explosion of branding

�� Corporate brandingCorporate branding

�� Services brandingServices branding

�� Social mediaSocial media

Emerging TrendsEmerging Trends

�� RelationshipsRelationships, friendships and trust., friendships and trust.

�� ConfidenceConfidence in the brandin the brand’’s future.s future.

�� Personal information managementPersonal information management, health, , health,

wellwell--being.being.

�� LeisureLeisure, hospitality and entertainment., hospitality and entertainment.

5/10/2011

Cars rust. People die. Cars rust. People die.

Buildings become Buildings become

dilapidated. dilapidated.

But what lives on are But what lives on are

the brands.the brands.

What is a brand?What is a brand?

�� It is a It is a relationshiprelationship

�� It makes a It makes a promisepromise and needs to and needs to deliverdeliver on this on this

promisepromise

�� It is a combination of It is a combination of physical and emotional physical and emotional

characteristicscharacteristics that ultimately define the brand that ultimately define the brand

image and brand personalityimage and brand personality

�� It is about the It is about the perceptionperception in the consumerin the consumer’’s minds mind

�� It It adds valueadds value to a company, product or serviceto a company, product or service

Good brand managementGood brand management

�� ProtectProtect your brandyour brand

�� HonourHonour your stakeholdersyour stakeholders

�� Treat your brand as an Treat your brand as an investmentinvestment, not a cost, not a cost

�� Exploit its Exploit its financial potentialfinancial potential

�� Understand that successful brand management Understand that successful brand management is a is a complexcomplex tasktask

What great brand shareWhat great brand share

�� A A compelling ideacompelling idea

�� ConsistencyConsistency in delivering on their promisein delivering on their promise

�� ExpressionExpression of the brand through every of the brand through every experienceexperience

�� AlignmentAlignment of internal and external commitment of internal and external commitment to the brandto the brand

�� RelevanceRelevance

When BMW drivers proudly turn the ignition keys When BMW drivers proudly turn the ignition keys

for the first time in for the first time in ““the ultimate driving machinethe ultimate driving machine””, ,

they are not only benefiting from a highly they are not only benefiting from a highly

engineered car with an excellent performance, but engineered car with an excellent performance, but

are also taking ownership of a symbol that are also taking ownership of a symbol that signifiessignifies

the core values of exclusivity, performance, quality the core values of exclusivity, performance, quality

and technical innovationand technical innovation..

Financial value of brandsFinancial value of brands

If this business were split up, I would give you the If this business were split up, I would give you the land and bricks and mortar, and I would take the land and bricks and mortar, and I would take the brands and trade marks, and I would fare beter brands and trade marks, and I would fare beter

than you. than you. John Stuart, chairman of Quaker (circa 1900)John Stuart, chairman of Quaker (circa 1900)

Social value of brandsSocial value of brands

E.g. McDonaldsE.g. McDonalds

Assignment Assignment

LetLet’’s recaps recap

Question 1Question 1

Brand personalityBrand personality

�� Functional benefits = brand attributesFunctional benefits = brand attributes

�� Emotional benefitsEmotional benefits

�� SymbolsSymbols

�� Associations, i.e. SelfAssociations, i.e. Self--expressive benefitsexpressive benefits

�� COOCOO

�� ImageryImagery

�� Personality / identityPersonality / identity

Question 1Question 1

Branding challengesBranding challenges

�� Creating relevanceCreating relevance

�� Protecting the brandProtecting the brand

�� Reaching target consumersReaching target consumers

�� Nurturing employeesNurturing employees

�� Competing and partnering at the same timeCompeting and partnering at the same time

�� Implementation of Implementation of programmesprogrammes, i.e. , i.e.

Sustaining Sustaining programmesprogrammes

Question 2Question 2

Business modelsBusiness models

�� OsterwalderOsterwalder’’ss model (64)model (64)

oror

�� Fast Cycle Company model (66)Fast Cycle Company model (66)

Question 2Question 2

InnovationInnovation

Question 2Question 2

Factors to consider:Factors to consider:

�� Pressure to compete on pricePressure to compete on price

�� Proliferation of competitorsProliferation of competitors

�� Fragmenting markets and mediaFragmenting markets and media

�� Complex branding strategies and brand Complex branding strategies and brand relationshipsrelationships

�� The temptation to change identity / executionsThe temptation to change identity / executions

�� OrganisationalOrganisational bias against innovationbias against innovation

�� Pressure to invest elsewherePressure to invest elsewhere

�� Pressure for shortPressure for short--term resultsterm results

Question 3 Brand structureQuestion 3 Brand structure

Provide comment on issues such as:Provide comment on issues such as:

�� Monolithic structures Monolithic structures vsvs endorsed structures endorsed structures vsvs branded branded identitiesidentities

�� Corporate brand nameCorporate brand name

�� Family brand namesFamily brand names

�� Mono brand namesMono brand names

�� Virtual brand namesVirtual brand names

�� DescriptionDescription

�� Brand hierarchies Brand hierarchies

�� Brand architecture, i.e. Corporate dominance Brand architecture, i.e. Corporate dominance vsvs mixed mixed brands versus brand dominancebrands versus brand dominance

�� Also consider what needs to be taken into consideration Also consider what needs to be taken into consideration itoito how to choose the most appropriate brand structure how to choose the most appropriate brand structure strategystrategy

Question 3Question 3

Portfolio managementPortfolio management

�� Clear Clear prioritisationprioritisation of future focus by major of future focus by major marketmarket

�� PrioritisationPrioritisation by brand and productby brand and product

�� Concentration of expenditure on priority market, Concentration of expenditure on priority market, brands and productsbrands and products

�� Operational cost savings through simplified Operational cost savings through simplified businessbusiness

�� Disposal of brands that donDisposal of brands that don’’t fitt fit

�� Gap filling by product development and Gap filling by product development and acquisitionacquisition

Question 4Question 4

Criteria for successful brand positioningCriteria for successful brand positioning

�� RelevanceRelevance

�� DistinctivenessDistinctiveness

�� CoherenceCoherence

�� CommitmentCommitment

�� DurabilityDurability

�� ClarityClarity

Question 4Question 4

PCDL modelPCDL model

Brand positioningBrand positioning

Brand message communicationBrand message communication

Brand performance deliveryBrand performance delivery

Leverage of brand equityLeverage of brand equity

May 2011 ExaminationMay 2011 Examination

FormatFormat

�� Open book examinationOpen book examination

�� One case studyOne case study

�� Question 1: Question 1: 12 marks12 marks

�� Question 2:Question 2: 8 marks8 marks

�� Question 3:Question 3: 18 marks18 marks

�� Question 4:Question 4: 12 marks12 marks

�� Question 5:Question 5: 11 marks11 marks

�� Question 6:Question 6: 22 marks22 marks

�� Question 7:Question 7: 17 marks17 marks

TopicsTopics

Some of the topics being covered:Some of the topics being covered:

�� Brand positioningBrand positioning

�� Brand performanceBrand performance

�� BrandingBranding

�� Reputation measurementReputation measurement

�� Brand planningBrand planning

TipsTips

�� DonDon’’t rewritet rewrite the textbook! the textbook!

�� ApplyApply the theory to the case study at hand!the theory to the case study at hand!

�� Be Be systematicsystematic!!

�� Be Be preparedprepared!!

�� Think Think out of the boxout of the box!!

�� Use Use mark allocationmark allocation as guideline to required as guideline to required

word count needed per question word count needed per question –– rather too rather too

much than not enough. much than not enough.

Good luck!Good luck!