To Brand or Not to Brand?

Concepts and Rules for Building the Killer BrandModule 4

Some Important Concepts…• Brand Name: The part of a brand that can be

spoken including letters, words and numbers.• Brand Mark: The elements of a brand that cannot

be spoken• Brand Equity: The value of company and brands

names.• Master Brand: A brand so dominant that it comes

to mind immediately when a product category, use, attributes or benefit is mentioned.

A look at Master BrandsA look at Master Brands

Baking Soda Adhesive Bandages

Rum

Gelatin

Soup

Cream Cheese

Crayons

Petroleum Jelly

Arm & Hammer Band-Aid

Bacardi

Jell-O

Campbell’s

Philadelphia

Crayola

Vaseline

Brand Mark

Logo/Name

So what is it exactly…• Attributes, benefits, values, culture,

personality and user• Research techniques: word

associations, personifying the brand, laddering up the brand essence

Benefits of Branding• Branding distinguishes products from

competition• Product Identification• Aids in repeat sales• Aids in new product sales• Aids in attracting loyal customers and

segments• It is the image, baby!

What is Brand Equity??A set of assets andA set of assets and

liabilities linked to a brand’s nameliabilities linked to a brand’s nameand symbol that add or subtractand symbol that add or subtract

from the value provided by afrom the value provided by aproduct or service to a firm and/ orproduct or service to a firm and/ or

that firm’s customers.that firm’s customers. Aaker, David A. (1991), Aaker, David A. (1991), Managing Brand Equity: Capitalizing on Managing Brand Equity: Capitalizing on

the Value of a Brand Name, the Value of a Brand Name, The Free Press, New YorkThe Free Press, New York

BrandBrandEquityEquity

Awareness

Competitive

Advantage

Associations

Perceived

Quality

Loyalty

For more see:Aaker, David A. (1995), Strategic Market Management,4th ed., Wiley, NY

The World’s 10 Most Valuable Brands – Interbrand 8/5/02

Rank Brand Value (billions)1 Coca Cola $69.62 Microsoft $64.13 IBM $51.24 GE $41.35 Intel $30.96 Nokia $307 Disney $29.38 McDonald’s $26.49 Marlboro $24.210 Mercedes $21

Benefits of Brand Equity• Leverage when bargaining with distributors

and retailers• Charge higher price for product• Launch extensions• Some defense against price wars• Brand valuation

Faithful or Fickle?A look at brand loyalty

• Cigarettes 71%• Mayonnaise 65%• Toothpaste 61%• Coffee 58%• Athletic shoes 27%• Canned veggies 25%• Garbage bags 23%

Branding Decisions

• Brand or not to brand?• Brand sponsor decision• Brand name decision• Brand strategy decision• Brand repositioning decision

Branding StrategiesBranding StrategiesBrand No Brand

Manufacturer’s Brand Private Brand

IndividualBrand

Family Brand

Combi-nation

IndividualBrand

Family Brand

Combi-nation

Brand Strategy Brand Strategy DecisionsDecisions

• Line extensions – existing brand to new sizes, forms, flavors etc.

• Brand extensions – brand names extended to new product categories

• Multibrands – flanker brands

• Cobranding – combination of two or more brands

• New brands

Three Questions to Ask

• Krispy Kreme • Starbucks

So How do You Do This??Some tips from “Brand Warfare: 10 Rules for Building the Killer Brand” by David D’Alessandro

R1: It’s The Brand, Stupid• Brand arrogance was once

commonplace– Brands that were once invincible are shadows of

their former selves (ABC, CBS, NBC)

• The consumer revolution– Consumer attitudes changed – don’t trust “big”– Cheaper to enter business and create brands

(amazon - $300,000)– Information access for consumers

• When the consumer rules, arrogance kills– The power of choice & importance of

differentiation

R2: Co dependency can be Beautiful…

• People pay attention to brands – they need them

• Brands save time– Think OTC drugs

• Brands project the right image– “No one can fault you for buying an IBM”

• Brands provide an identity– Brand communities (Harley; Ebay); comfort

levels

R3: A Great Brand Message is Like a Bucking Bronco – once you are on,

don’t let go…• Brand New? Who is it going to be. Brand

Old? What is it and where should it go. Which is easier??

• Its not the idea that rules, it’s the execution• Brand message has to speak to consumers• Keep it relevant and consistent

R4: If you want Great advertising, be prepared to fight

for it• Beware of flatterers • It is not necessarily good advertising that the

client is after• Be memorable• Don’t change the advertising because you

are bored with it.

R5: When it comes to sponsorships, there is a sucker

born every 30 seconds• Get in for the right reasons• Understand the players

– The event organizer, TV Networks, the athletes and their entourages

• Look for a balance of power

R6: Don’t Confuse Sponsorship with a Spectator

Sport• Use the sponsorship every day in every

way• Set the right expectations• Make sure you achieve something

measurable and real

R7: Do not allow scandal to destroy in 30 days a brand that

took 100 years to build• Brand is destiny• Do not allow your enemies to define you• Do not stall. Do not allow the lawyers to

stall.• You can run – but you cannot hide