Chapter 1 (introduction to strategic brand management)

Introduction to Strategic Brand Management

Adriana Lima – Brazilian Model

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• A brand is a “name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition.”

• Branding has been around for centuries as a mean to distinguish the goods of one producer from another

• The word BRAND is derived from the Old Norse word brandr, which means “To Burn”

• The simplest definition is , branding is all about naming a commodity

• These different components of a brand that identify and differentiate it are brand elements.

.In the beginning of mankind

Products were pretty much the same

Trade kept in family

Choice was easy

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Brands are much more than logos

. Create in the mind of the prospect the

PERCEPTION

that there’s no other product or service

quite like this Branded One!

Abundance of choices Being distinctive is the way potential

users will decide whom to do business with

When We build a brand

We Create a better perception in the mind.

• Not in the mind of the Company• Not in the mind of the CEO

But in the mind of the Customers!

. Just a logo/catchy slogan A little Advertising Having attractive stationery or

letterhead

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Harley Davidson American by Birth. Rebel by Choice

Porsche There is no substitute.

Aston Martin Power, beauty and soul.

Walmart Save Money. Live Better.

Reebok I am what I am.

Calvin Klein Between love and madness lies obsession

Tag Heuer Success. It’s a mind game

Levis Quality never goes out of style

3M Innovation

Sony Make Believe

Energizer Keeps going and going and going

PlayStation Live in your World. Play in ours.

Nikon At the Heart of the Image

Kodak Share moments. Share Life

Olympus Your Vision. Our Future

Hallmark When you care enough to send the very best.

McDonalds I’m Loving it

KFC Finger Lickin’ good

Burger King Have it your way

M&Ms Melts in your mouth, not in your hands.

Nokia Connecting People

Coca Cola Open Happiness

Nike Just do it

People overwhelmed by available choices

Human attention is a major business currency

Interest in, and loyalty to, brands that

don’t “touch them” fall off the choice chart.

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• A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

• A product may be a physical good, a service, a retail outlet, a person, an organization, a place, or even an idea.

A brand is therefore more than a product, as it can have dimensions that differentiate it in some way from other products designed to satisfy the same need.

Some brands create competitive advantages with product performance; other brands create competitive advantages through non-product-related means.

Brand versus Product

5 Levels of a Product

17AOT- www.tharakadias.com

Product form Features Customization Performance Conformance Durability Reliability Repairability Style

AOT- www.tharakadias.com

Ordering ease Delivery Installation Customer training Customer

consulting Maintenance and

repair Returns





Consumer Identification of source of product Assignment of responsibility to product maker Risk reducer Search cost reducer Promise, bond or pact with maker of product Symbolic device Signal of quality

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1. Performance risk2. Functional risk3. Physical risk4. Financial risk5. Social risk6. Psychological risk7. Time risk


Manufacturer Means of identification to simplify handling or tracing Means of legally protecting unique features signal of quality level to satisfied customers Means of endowing products with unique association Source of competitive advantage Source of financial returns


Physical goods Pharmaceuticals FMCG Industrial All B2B products High tech products

Services Airlines- British Airways Hotels – Hilton Banking – HSBC Hospitals – South City And many more


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Retailers and Distributors Agha’s, Farid’s, Paradise, Naheed

Online products and services Homeshopping.pk, daraz.com.pk

People and Organization Shan, Zubaida Apa

Sports, Arts and entertainment Cricket, foot ball, Movies and Dramas

Geographic locations Gilgit, Swat

Ideas and causes – Aids ribbons


Savvy customers More complex brand families and portfolios Maturing markets More sophisticated and increasing competition Difficult in differentiating Decreasing brand loyalty in many categories Growth of private labels Increasing trade power Fragmenting media coverage Eroding traditional media effectiveness Emerging new communication options Increasing promotional expenditure Decreasing advertising expenditures Increasing cost of product introduction and support Short term performance orientation Increasing job turnover


Cost Clutter Fragmentation Technology


One of the important in the branding environment is the proliferation of new brands and products

One of the main reason is the line extensions

There for brand name may now be indentified with a number of different products with varying degree of similarity

E.g.: Coke, Nivea, Pantene, Lux,, etc.



Identifying and establishing brand positioning Planning and implementing brand marketing

program Measuring and interpreting brand performance Growing and sustaining brand equity


Mental maps – this is a visual depiction of the different types of associations linked to the brand in the mind of consumer(Land Rover)

Core brand association – these are that subset of associations(attributes and benefits) that best characterize a brand (Toyota)

Brand mantra- this is know as brand essence or core brand promise (we deliver anything- DHL)

Competitive frame of difference- how u crate the brand value and brand positioning differently to the competition (HSBC)

Points of parity and points of difference – creating brand superiority in mind of consumers of advantages or point of difference a brand offers, while at alleviating concerns about and possible disadvantages of using competitor products ( Pharmaceuticals)


Mixing and matching branding elements- brand logos, , brand names, symbols, characters, packaging and slogans. Use these elements to create a strong brand relationship

Integrating brand marketing activities – Personalize marketing, one to one marketing , permission marketing

Leveraging secondary association – the brand may themselves be linked to certain source of factors, such as the company, countries or other region, or channel of distributors of distribution channel which will be associate and identify through that channel.


Brand value chain- is a mean to trace the value creation process for brands.

Brand audit – it’s a comprehensive examination of its source of equity

Brand equity management system – is a set of research procedures designed to provide timely, accurate and actionable information which needs to take the best tactical decisions in short term and long term

Brand tracking – involving the above system is called brand tracking

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Brand product matrix – is a graphical representation of all the brands and products sold by the firm

Brand hierarchy – displays the number and nature of common and distinctive brand components across the firms products. By capturing the potential branding relationships among the different products sold by the firm.

The brand portfolio – is the set of all brands and brand lines that a particular firm offers for sale to buyers in particular category.


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.Mental mapsCompetitive frame of referencePoints-of-parity and points-of-differenceCore brand valuesBrand mantra

Mixing and matching of brand elementsIntegrating brand marketing activitiesLeveraging of secondary associations

Brand Value ChainBrand auditsBrand trackingBrand equity management system

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

KEY CONCEPTSSTEPS

Grow and SustainBrand Equity

Identify and EstablishBrand Positioning and Values

Plan and Implement Brand Marketing Programs

Measure and InterpretBrand Performance

Education

Chapter 1 (introduction to strategic brand management)