Brand strategyIntroduction to Brand Equity and Brand strategies

Agenda

Review branding conceptsIntroduction to Brand EquityIntroduction to Brand Strategy Design

What is a brand?

What is a brand?

logo?company?

colour?slogan?

business card?

mission statement?marketing

materials?

Brands are relationship builders

What is a brand?

A brand is the total experience a customer has with your company.Branding is the activity of creating and using unique brand elements.A brand is a promise to your customer.

Brand elementsNameSloganLogoColour paletteDesignSymbols and IconsAudio, jingles, songs, soundsMaterialsCharacters, etc

personalitypositioningconsistencypromiseexperiencevalue

http://www.youtube.com/watch?v=lDF6cIRup9Y

So, what makes a powerful brand?

STRATEGY!

Why brand strategy?Strong brands never happen by accident. Yet only 53% of firms say they have a long term brand strategy in place.Only ¼ of marketing and advertising professionals can clearly articulate their company’s brand position to clients, customers or prospective clients.Often, what is missing is a shared set of tools for creating and implementing an effective brand strategy.

So, what is a brand strategy?A brand strategy is simply a plan for developing a coherent brand. It provides the means to create differentiation and consumer appeal by empowering better brand decisions across the organization.

What do you need to know7 components to create a good brand strategy:- tie your brand to your business model (company goals)- be consistent (communications)- connect emotionally- reward and cultivate (engagement)- measure- be flexible- know your competitors

http://blog.hubspot.com/blog/tabid/6307/bid/31739/7-Components-That-Comprise-a-Comprehensive-Brand-Strategy.aspx

First, let’s understand the branding process

http://www.youtube.com/watch?v=ZceipOGEblk

What elements can you find in the video?

What elements can you find in the video?

story athletes

interactioncollaboration

identification

positioningexperience

technology

social media

videostores

exclusiveuniqueness

engagement

Brand equityIn order to build a strong brand, you must shape how customers think and feel about your product. You have to build the right type of experiences around the brand, so that customers have specific, positive thoughts, feelings, beliefs, opinions, and perceptions about it.

Brand equity (Keller model)

Keller's Brand Equity model is also known as the Customer-Based Brand Equity (CBBE) Model. Kevin Lane Keller developed the model and published it in his widely used textbook, "Strategic Brand Management."

Within a pyramid, the model highlights four key levels that you can work through to create a successful brand. These four levels are:

1. Brand identity.2. Brand meaning.3. Brand responses.4. Brand relationships.

Brand Identity - Who are you?Called as “awareness”.You need to make sure that your brand stands out, and that customers recognize it and are aware of it.

Brand Meaning - What are you?Identify and communicate what your brand means and what it stands for. There are 2 steps:- performance: how well your product meets your customers’ needs- imagery: how well your brand meets your customers’ needs on a social and psychological level.Also called as brand image / positioning

Example - PatagoniaPatagonia makes high quality outdoor clothing and equipment, much of which is made from recycled materials.Patagonia’s brand performance demonstrates its reliability and durability; people know that their products are well designed and stylish, and that they won't let them down. Patagonia’s brand imagery is enhanced by its commitment to several environmental programs and social causes.

Brand Response - What do I think or feel about you

Your customers’ responses to your brand. Also called as brand perception. There are 4 categories:- quality- credibility- consideration (relevance)- superiority (compared to competitors)

Brand Resonance - How much of a connection would I like to have with you?

Brand resonance is the most difficult and most desirable level to reach. You have achieved brand resonance when your customers feel a deep, psychological bond with your brand. (Brand relationships)

Brand Resonance - How much of a connection would I like to have with you?

There are 4 categories:- behavioural loyalty (regular purchases)- attitudinal attachment (consumers love your brand and they see it as a special purchase)- sense of community- active engagement (even when consumers are not purchasing they are loyal)

Lovemarks

Brand strategy - Now that you can identify brand equity elements, you can build your strategy

Brand extension - Armani case study

● Introduction

● Italy’s most glamorous luxury brand

● $3,303 million - brand value based on the Best Global Brands 2009

● 300 boutiques worldwide, 4,800 staff

● Giorgio Armani- fashion designers with full control of their company.

● Men’s wear designer at Nino Cerrutti

● Eight years later, he established his own design house with his business partner, Sergio Galeotti

● Six people in his first fashion show in 1974. Now the brand is one of the best success stories in the fashion industry.

Brand extension - Armani case study

● Branding strategy

● Armani branding strategy functions on three different levels, that have been used to craft the brand’s identity

and personality.

a. The man, Giorgio Armani

b. The Parent brand- Armani

c. The sub-brands of Armani

● Armani brand personality is an extension of the personality of Giorgio Armani himself.

● Armani brand personality: Glamour, style, sexiness, expertise, talent, sophistication, trend and precision

Brand extension - Armani case study

● Branding strategy

● Armani offers a luxury fashion product portfolio comprising haute couture, prêt-à-porter (a designer clothes

sold ready-to-wear), children’s apparel, leather goods such as bags, shoes, underwear, jewellery, fragrance,

cosmetics and eyewear.

● The brand has also diversified into non-fashion product ranges such as Cafes, restaurants, hotels, nightclubs,

flowers and even sweets and chocolate.

● Giorgio Armani + Mercedes-Benz = CLK Mercedes- Benz car

Brand extension - Armani case study

● Branding strategy

● Armani brand has been stretched into seven sub-

brand categories ranging from high-end to medium

priced men’s and women’s fashion goods, children’s

fashion and home products.

The seven main brand categories have different functions

in the overall Armani branding mix.

Brand extension - Armani case study

● Giorgio Armani

● It is the most exclusive and highest priced products

of the brand.

● It features goods showcased on the brand’s runway

fashion shows such as apparel for men and women,

accessories, eyewear, cosmetics and perfumes.

● It is the ambassador of the Armani empire and

represents its image, heritage, personality, product

precision and high quality.

● It also generates great publicity for the entire Armani

group of brand.

Brand extension - Armani case study

● Armani Collezioni

● It features product like fine tailored clothing,

sport wear and male and female accessories.

The product group also includes home

furnishings.

Brand extension - Armani case study

● Emporio Armani

● It is targeted at young modern-minded and

fashion oriented consumers.

● It includes clothing, accessories, eyewear and

jewelry.

Brand extension - Armani case study

● Armani Jeans

● It is the denim sub-brand offering a jeans-

based product category.

Brand extension - Armani case study

● Armani Exchange

● It is the sub-brand for casual wear and

accessories with a lower premium-pricing

strategy.

Brand extension - Armani case study

● Armani Casa

● It is the home furnishings and decorations sub-

brand.

Brand extension - Armani case study

● Armani Junior

● It is the children’s products sub-brand.

Brand extension - Armani case study

● Success of brand extension strategy of Armani

● Armani had an early recognition of the important role of the luxury consumers in a brand’s success. While several

luxury brand focused on the product as the key selling factor of their brands, Armani concentrated on the

consumer and on crafting its brand based on consumer needs and characteristics.

● Identifying the different luxury consumer segments that exist and designing product that would appeal to them.

● The brand has effectively managed to maintain its superiority and high quality standards across the offerings of all

the sub-brands.

● An uniform marketing mix strategy for all the sub-brands and the same level of expertise and skill to products

across every range.

● Another factor of the success of the Armani brand is the genius of the brand founder Giorgio Armani, both as a

designer and as a businessman.

References

http://marketing-branding.tumblr.com/

Thank you very much!