Brand Growth Strategies_Brand ManagementFinal

Therakorn Yardpaga3M Thailand Ltd.

Brand Management

What is a Brand ?

What is a Brand?NameTermSignSymbolDesignCombinationIdentifies product/service of sellerDifferentiates from competitorsKeller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

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Brand RecognitionThe stage of brand acceptance at which the consumer knows of a brand, but doesnot prefer it to competing brands.

Brand PreferenceThe stage of brand acceptance at which the consumer selects one brand over competingofferings based on previous experience with it.

Brand InsistenceThe stage of brand acceptance at which theconsumer refuses to accept alternatives and searchers extensively for the desired good orservice.

ManufacturerBrand

Kodak, HeinzPrivate Brand

Kenmore, DieHardCraftmanFamily BrandKitchenAid Appliances, Johnsons & Johnson productsIndividual BrandLevers Aim, Close-Up &Pepsodent ToothpastesGeneric Products

No name cigarettesTypes of Brands

Brand ManagerA marketing professional charged withplanning and implementing marketingstrategies and tactics for a brand.

Brand NameThe part of a brand consisting of words or letters that form a name to identify and distinguish a firms offerings.

Brand MarkA symbol or pictorial designthat identifies a product.

Generic NameA brand name that has become a generallydescriptive term for a class of products.

TrademarkA brand to which the ownerlegally claims exclusive use.

Brand ExtensionApplication of a popular brand name to a new product in an unrelated product category.

Brand DilutionA loss in brand equity that results whena firm introduces too many brand extensions.

Brand LicensingThe practice of allowing other companies touse a brand name in exchange for a payment.

Co-brandingThe practice of combining two strong brands,perhaps owned by different companies, to sell a product.

What is Brand Equity ?

Brand Equity

Perceived Brand Quality

BrandAwareness

BrandLoyalty

OtherProprietaryBrand Assets

Brand Associations Attributes Benefits AttitudesProvides Value to Customerby Enhancing Customers: Interpretation/processing of information Confidence in the Purchase Decision Use SatisfactionProvides Value to Firm by Enhancing: Efficiency and Effectiveness of Marketing Programs Brand Loyalty Prices/margins Trade Leverage Competitive AdvantageWhat is Brand Equity?Source: Aaker (1991) Managing Brand Equity

Measuring Brand Equity

Indirect MeasurementMeasure consumer brand awarenessUse aided and unaided memory measuresMeasure Brand imageUse qualitative and quantitative techniquesUseful for identifying the aspects of brand knowledge which potentially cause the response that creates customer-based brand equityKeller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

Direct MeasurementComparativeAssess the effect of consumer perceptions and preferences on aspects of the marketing programHolisticEstimate overall value of the brandUseful in approximating the possible outcomes and benefits that arise from the response that creates customer-based brand equityKeller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

Implement MeasurementsConduct Brand AuditBrand inventory: access health of brandBrand exploratory: uncover sources of equityBrand positioning: improve and leverage equityDevelop Brand Tracking ProceduresMonitor strength, favorability and uniqueness of key brand associationsTrack preferences for brand, usage, price sensitivity, etcTrack marketing programs effect on brand imageCreate Brand Equity Management SystemBrand equity charterBrand equity reportBrand overseersKeller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

Evaluate current position of brand/productBrand Scorecard1. The brand excels at delivering the benefits customers truly desire.2. The brand stays relevant to consumers.3. The pricing strategy is based on consumers perceptions of value.4. The brand is properly positioned.5. The brand is consistent.6. The brand portfolio and hierarchy make sense.7.The brand makes use of and coordinates a full repertoire of marketing activities to build equity.8.The brands managers understand what the brand means to consumers.9.The brand is given proper support, and that support is sustained over the long run.10.The company monitors sources of brand equity.Source: Kotler, The Brand Report Card, HBR, Jan. 2000

Determining Associations with the Brand NameAssociations withthe Brand NameName AssociationsWhat comes to mind when the following brands are mentioned?Projective TechniquesJan had just finished eatingthe Campbells tomatosoup and feltExploring Perceptual DifferencesWhat other brands is it different from and why?Managing Equity: Capitalizing on the Value of a Brand Name. 1991

Building Brand Equity:Brand Development

Brand Growth Strategies

I. Rejuvenating a BrandII. Brand ExtensionsIII. Brand ExpansionIV. Brand Development Find New Uses Increase Usage Extend the Brand Obsolete Existing Product Augment the Product/Service Reposition the Brand Enter New Markets

Expand geographically Target new segments

Add product features, product refinementExpand the product lineDevelop a new generation productDevelop new products for the same market

New ProductsPresent ProductsPresent MarketsNew MarketsSegmentTargetPositionMarketing PlanTest MarketLift-Off

Evaluate the current health of brandDetermine growth objectives of company and potential product usage growth opportunitiesMeasure long-term potential impact of opportunities against current brand equityLaunch into the new marketRe-evaluate brand positioning & impact

Brand Development

4. Marketing Plan Four Ps

Product Development

Brand Development

1. Segment - Find the PainStrategic windows to look for in deciding to enter a new market:A segment of consumers whose needs are not being satisfied (quality, service, or specialization needs).A segment not targeted by others.A position or segment held by a weak competitor.Once an idea is found make sure it meshes with the companys corporate vision and core competencies.

2. TargetEstimate the GainFactor and Cluster analysis: determine segments.Regression analysis: identify best segment(s) to target.Funnel Model: forecast total market and market segment shares now and in the future.Mitigate risks such as seasonality and business cycleAdditional factors include:1. Technical/Competence2. Legal3. Social4. Competitive5. Financial

3. PositionMarket Opportunity AnalysisDeliver one singular benefitDefine your product in the clearest terms possibleDefine user profiles; aiming toward Love GroupBrand nameMake a statement with the nameBrand Logo & SymbolLogo should be designed to fit both eyesUse color opposite to major competitor

3. Position (cont.)Brand SloganBe unique in the consumers mindSuccess is the claim to authenticityClaim to be the leader, not betterTrying to be all things to all people weakens the brandBrand Tagline & BylineTagline: express current functional & emotional benefitsByline: descriptive words to tell consumer where to place the brand

3. Position (cont.)Brand CreationHow many brands exist?Outline the underlying architecture for the brand name, byline, tag line, logo, and the brand story.Consider trends, profile existing brands and determine how decisions are made that affect brand choice. Include branding in everything from finance to operationsTest product concept and positioning

3. Position (cont.)Brand Creation StrategySpecify sales and market share and communication objectives and strategies to accomplish themSpecify tactics of specific action to achieve each strategyDevelop a timeline and product roadmap

The Brand Position StatementAnswers four questions:Which elements of the brand identity should be part of the proposition and active communication program?Who is the target audience - primary and secondary? What are the communication objectives?What will be the points of advantage?Aaker, David A. Building Strong Brands. 1996

Brand Position

StrategicBrand AnalysisCompetitor AnalysisSelf-AnalysisCustomer AnalysisBrand Image/ PositionStrengths/vulnerabilities

Existing Brand ImageBrand HeritageStrengths/WeaknessesThe brands soulLinks to other brands

TrendsMotivationsSegmentsUnmet Needs

Aaker, David A. Building Strong Brands. 1996

A Brand Image Can:AugmentedReinforced &ExploitedDiffused, SoftenedOr DeletedAdd associationsSoften restrictiveperceptionsReinforce imagestrengthsExploit positivedifferencesSpecify what the brand is notEliminate images inconsistent with the brand identityAaker, David A. Building Strong Brands. 1996

Creating a New Brand NameDoes it make learning the brand easier?Is it unique and likely to be superior to competitors in stimulating associations?Can the brand justify marketing support adequate to establish the name?Managing Equity: Capitalizing on the Value of a Brand Name. 1991

Benefits of Brand ConsistencyOwnership ofIdentity SymbolCost EfficienciesOwnershipOf APositionMaytag -- DependableMarlboro -- MasculineFederal Express -- OvernightSloganJingleImageSpokespersonLess ExpensiveMoreProductiveAaker, David A. Building Strong Brands. 1996

4. Marketing PlanProduct Variety, Quality, Name, Features, Packaging, Sizes, Services, Warranties, ReturnsUsage models and scenariosPricingList price, Discounts, Allowances, Payment period, Credit termsPlacementSales promotions, Advertising, Sales force, Public relations, Direct marketing

4. Marketing Plan (cont.)PromotionPR, radio, print, consumer promotion, sampling, direct marketing, third-party marketingReach vs. Frequency; National vs Spot markets; Steady vs. Pulsing vs. SeasonalProduct DevelopmentCommunicate vision into actual productTest within company, with select customers, with consumers

5. Test MarketsMarket TestingMeasure consumer testing by trial, first repeat, adoption and purchase frequencySuccess MetricsAchievement of each years goalsSupport EnvironmentThe level of service a customer receives affects their perception of the brand

6. Lift OffHave you generated your idea?Have you done research on the target market? Has the brand been created?What is your marketing plan?Has your product tested successfullyin the market?

Rejuvenating A Brand

Rejuvenating the BrandBrandRejuvenation

David Aaker, Managing Brand Equity

How To Evolve a Brand and Make It More ContemporaryUpdate SymbolsUpdate NameUpdate SlogansNew Products 3M Mazda Singha Beer

Federal Express /

FedEx Kentucky Fried Chicken /

KFC TAC / DTAC

GE Electricity /

Technology / ProgressJell-O Jigglers Quaker Oat

SquaresAaker, David A. Building Strong Brands. 1996

Conduct market research to see exactly how consumers use the brand.Examine competition for applications

Frequency of UseRemindersIncentivesEase or convenience of useOccasionsLocationsLevel of UseRemindersIncentivesReduce negative associations with frequent useDevelop positive associations with frequent use

EFFECTS OF EXTENDINGA BRAND TO A NEW PRODUCTMore GoodThe Extension Enhances the Brand NameMore UglyNew Brand Name is ForegoneThe UglyThe Brand Name is Damaged

David Aaker, Managing Brand Equity GoodBrand NameAids the ExtensionBad The Brand Name Fails to Help the ExtensionBrandRejuvenation

Step 1: Determine brand name associationsStep 2: For each association identify related product categoriesStep 3: Select candidate products

The Art of Cannibalism

4. Obsoleting Existing ProductBrandRejuvenation

When you are at the top, you have to have the courage to say, I have to stop investing in this great product and generate a new product that will kill it. If you dont, some competitor will do it for you.-Willem Roelandts, Hewlett-Packard

How can you further differentiate your product with augmentation?What can be done better?What can be done extra or different?Improved packagingUpgraded servicesBrandRejuvenation

Change common or usual associationsAdd value by creating new associationsBrandRejuvenation

Evaluate segmentation and consumer demographic informationExamine growth opportunities in declining or maturing markets/industriesFind segments that have traditionally not been servedSelect a segment where your Brand can add value

7. Enter New MarketsBrandRejuvenation

Improve cost accounting Allocate resources To winnersResearch consumer behaviorApply The logic line testCoordinate marketing across The line Work with channel partnersExpect product-line turnover Manage deletions

Improve Product-line StrategiesRies, Al. & Trout, Jack. The 22 Immutable Laws of Branding. 1993.

Brand Expansion Strategy

Brand Expansion StrategiesHedge off competitorsIncrease profits, sales and revenuesIncrease brand exposureLower R&D / marketing expenses than with completely new productEconomies of scale are greaterThe Board told you to grow!

Growing a BrandLine extensions: existing brand name extended to new sizes or flavors in the existing product category.Brand extensions: brand names extended to new product categories.Multibrands: new brand names introduced in the same product categoryNew brands: new brand name for a new category productCobrands: brands bearing two or more well-known brand names.Source: Kotler, Marketing Management, p. 413Brand ANew Brand CBrand BNew ProductNew Variation on Old Prod.

Steps1. Evaluate the current health of brand/product2. Determine growth objectives of company and potential product usage growth opportunities3. Measure long-term potential impact of opportunities against current brand equity4. Launch into the new market5. Re-evaluate brand positioning & impact

Brand Extension

Why Brand Extensions?Consumers SegmentationTrade PressureCompetitive IntensityShort Term GainExcess CapacityPricing BreadthConsumer DesiresCurrent BrandMarketplace

When Does an Extension Make Sense?Strong Brand associations provide: A point of differentiation An advantage for the extension

The extension helps the core brand by: Reinforcing the key associations Avoiding negative associations Providing name recognition

The category will not support the resources

needed to establish a new name A new name will not provide a useful set of

associations or a platform for future growth

Ries, Al. & Trout, Jack. The 22 Immutable Laws of Branding. 1993.

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The Extension DecisionGood:If the brands association, perceived quality and awareness/presence help the extensionMore Good:If the extension reinforces the associations and awareness of the brandBad:If the name does not add value to the extension of even has negative associationsUgly:If the core brand name is damaged or diluted by the extension, or the brand franchise is cannibalizedMore Ugly: If the opportunity to develop another brandname is forgone.


Brand Roles

Brand Roles

Sub brand RolesDescribe offeringsStructure & clarify offeringsAugment/Modify brand identityExploit market opportunitiesSupport Extensions

Strategic BrandsEndorserDriverSilver BulletsBranded BenefitsFeaturesComponentsService programs


Sub-brand RolesAdd value by fulfilling one or more of the following tasks:Sub-brandRolesStructure &Clarify OfferingsDescribeOfferingsExploitMarket OpportunitiesAugment orModify theIdentityOral B Tooth & Gum CareHidden Valley Low FatLevis LooseMarriott Hotels Fairfield Courtyard Residence Inn

Smuckers Simply FruitSure ProstickApple Mac QuadraNike Air JordanOatmeal CrispAaker, David A. Building Strong Brands. 1996

Brand Extensions - AdvantagesFacilitate new product acceptanceReduced risk perceived by customersIncrease the probability of gaining distribution and trialIncrease efficiency of promotional expendituresReduce cost of introductory and follow-up marketing programsAvoid cost of developing a new brand Allow for packaging and labeling efficienciesPermit consumer variety-seeking

Provide feedback benefits to the parent brand and companyClarify brand meaningEnhance the parent brand imageBring new customers to the brand franchise and increase market coverage Revitalize the brandPermit subsequent extensions

Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

Brand Extensions - DisadvantagesConfuse or frustrate consumersRetailer resistanceFailure could hurt parent brand imageCannibalize sales of parent brandDiminish identification of brand with any one categoryHurt image of parent brand if associations between products conflictsDilute brand meaning by spreading brand too thinForgo the chance to develop a new brand and lose associated potential opportunities and revenuesUsually does not increase purchases with a categoryLight, Clear, Fat-free diminish perception of parent brandKeller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

Brand Extension TypesLine Extension: A parent brand is used to brand a new product that targets a new market segment within a product category currently served by the parent brand. Most new products are line extension

Category Extension: A parent brand is used to enter a different product category from that currently served by the parent brand. Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

Horizontal Extension

FITADDEDVALUEENHANCEDBRANDEQUITYCustomers must be comfortable with the brand in the new setting.Bases: product associates, ingredient, attribute, application, user imagery, expertise, designer image.

The brand name alone should help customers articulate why the offering is superior to other brands.

The brand equity should be enhanced by the brands presence the brands presence in another context -- not only from increased visibility but also from the associations generated.

Aaker, David A. Brand Leadership. 2000

Vertical Extension

To participate in a large & growing value marketProduct vitality & marginsA vertical stretch is particularly tricky because perceived quality is involved and also because the use of sub-brands & endorsed brands needs to be considered.Risk to brands reputation & customer baseCannibalizationLack of credibilityCompetitor price warsADVANTAGESDISADVANTAGESAaker, David A. Brand Leadership. 2000

7 Approaches to Brand Extension

Distinctive Taste / Ingredient / ComponentCompanion ProductCustomer FranchiseExpertiseBenefit / Attribute / FeatureDesigner or Ethnic ImageSame Product / Different Form Cranberry Juice Cocktail / Dole Frozen Fruit BarsArm & Hammer Carpet DeodorizerColgate Toothbrushes / Duracell Durabeam FlashlightsVisa Travelers Checks / Gerber Baby ClothesHonda Lawn MowersIvory mild shampoo /Sunkist Vitamin C TabletsPorsche Sunglasses / Ragu PastaKeller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

BrandExtensionFunctional Benefits

Prestige

User Type

SymbolOriginal Product ClassExtension Product ClassSkills/Assets Complementing*The brand and the extension must share common skill or asset perceptions to be successfulDetermining Brand and Extension FitManaging Equity: Capitalizing on the Value of a Brand Name. 1991

How many brands?Is the brand sufficiently different to merit a new name?Will a new name really add value?Will an existing brand be placed at risk if used on a new product?Will the business supporta new brand name?Aaker, David A. Building Strong Brands. 1996

How to use Brand ExtensionsBrandPositionSubset of identity/Value Proposition Core of Identity Points of Leverage Key Benefits

Actively Communicate Augment the Image Reinforce the Image Diffuse the Image

Create Advantage Points of Superiority Points of Parity

Target Audience Primary Secondary


What the Brand Name Brings to the Brand ExtensionBrandNameQualityAssociationsAwareness /PresenceTrialPurchaseBrandAssociation

H-P, Kraft, GE, FordReputation for QualityWeight Watchers (low calorie)Jeep (adventure)Jell-O Pudding PopsArm & Hammer Carpet CleanerMore likely to try establishedBrand namesAaker, David A. Building Strong Brands. 1996

Why the Brand Name Fails to Help the Extension?The Name DoesNot Add ValueNegative Attribute AssociationsThe NameConfusesThe FitIs PoorPillsbury MicrowavePopcorn beat out by Latecomer Orville RedenbacherLevi Strauss Tailored Classics /Bic PerfumeBetty CrockerCookbookChickenRolls-Royce Bicycles /Dole Hawaiian ResortsManaging Equity: Capitalizing on the Value of a Brand Name. 1991

Expanding Brand Meaning Through ExtensionsKeller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

BrandOriginal ProductExtension ProductsNew Brand MeaningWeight WatchersFitness CenterLow Calorie FoodsWeight Loss and MaintenanceSunkistOrangesVitamins, JuicesGood HealthCrayolaCrayonsMarkets, Paints, Pens, Pencils, ClayColorful Crafts for KidsAunt JemimaPancake MixesSyrups, Frozen WafflesBreakfast Foods

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How to Augment a Brands Identity

Adding emotional benefitsUse of sub brands

ProductExtensionsAaker, David A. Building Strong Brands. 1996

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Problems And Risks From Brand Proliferation

WEAKER LINE LOGICLOWER BRAND LOYALTYUNDEREXPLOITED IDEASHIDDEN COSTSINCREASED COSTS MORE COMPETITOR OPPORTUNITIESSTAGNANT CATEGORY DEMANDRisks ofBrand ProliferationRies, Al. & Trout, Jack. The 22 Immutable Laws of Branding. 1993.

22 Immutable Laws of Branding1. Expansion: The power of a brand is inversely proportional to its scope.2. Contraction: A brand becomes stronger when you narrow its focus.3.Publicity: The birth of a brand is achieved with publicity, not advertising.4.Advertising: Once born, a brand needs advertising to stay healthy.5.Word: A brand should strive to own a word in the mind of the consumer.6.Credentials: The crucial ingredient in the success of any brand is its claim to authenticity (ex. Coke is it!)7.Quality: Quality is important, but brands are not built by quality alone. (ex. Is Rolex really better than Timex?)8.Category: A leading brand should promote the category, not the brand.9.Name: In the long run, a brand is nothing more than a name. (Ex. Xerox, Kleenex, etc.)10.Extensions: The easiest way to destroy a brand is to put its name on everything. (Ex. Miller beer)11.Fellowship: In order to build the category, a brand should welcome other brands. (Competition draws attention)12.Generic: One of the fastest routes to failure is giving a brand a generic name. 13.Company: Brands are brands. Companies are companies. There is a difference.14.Subbrands: What branding builds, subbranding can destroy. (Line extensions can kill the value of a brand.)15.Siblings: There is a time and a place to launch a second brand. (Ex. Honda introduced Acura, not Honda Ultra)16.Shape: A brands logotype should be designed to fit the eyes. Both eyes. (Ex. Arbys logo is too tall, less effect.)17.Color: A brand should use a color that is the opposite of its major competitors. (Ex. Car rental logos)18.Borders: There are no barriers to global branding. A brand should know no borders.19.Consistency: A brand is not built overnight. Success is measured in decades, not years.20.Change: Brands can be changed, but only infrequently and only very carefully.21.Mortality: No brand will live forever. Euthanasia is often the best solution.22.Singularity: The most important aspect of a brand is its single-mindedness. (Ex. What is a Chevrolet?!?)

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Brand Growth Strategies_Brand ManagementFinal

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