Strategic Brand Management

Dr.Soumya Padhi

What is a Brand?

Old Norse word – brandr – to burn.

AMA – 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 the competition.

Branding basis – people, place, animal or bird, scientific term, and things or objects.

Branding contain – inherent product meaning, and attributes or benefits.

Branding could be done for product (physical good, retail store, person, organization, place, or an idea.

Brand = product + other differentiating dimensions (physiological and psychological)

Brand Definition

• … the reason consumers flock to some brands and ignore others is that behind the brand stands an unspoken promise of value. That is why brands are becoming even more important drivers of growth. That is also why Unilever wants Knorr, Skippy, Hellmann’s, SlimFast and Ben & Jerry on its plate. »

Mukul Pandya, WSJ.

Key trends affecting brand management … &

marketing• Consumption, societal & cultural multi-Consumption, societal & cultural multi-

fragmentation & globalisition fragmentation & globalisition • Less loyal / more « intelligent (?) » buyer Less loyal / more « intelligent (?) » buyer • Self value-building consumptionSelf value-building consumption• Search for emotionsSearch for emotions• Multiplication of offers & chanels• Interactive marketing technologiesInteractive marketing technologies• Markets saturationMarkets saturation• Multiplication of touchpoints/contacts Multiplication of touchpoints/contacts • Loss of credibility of traditional media Loss of credibility of traditional media

contactscontacts

From USP to HSP

• USP = Unique Selling Proposition• ESP = Emotional Selling Proposition• OSP = Organizational Selling Proposition• BSP = Brand Selling Proposition• MSP= Me Selling Proposition• HSP =Holistic Selling Proposition

(Martin Lindstrom)

A Brand builds its Own world

• And that is a fantastic power !• In this brand (!) new world, What

IS a Brand and What DOES a Brand do?

Think of Brands in your own life

• 1 - Think of how you became aware of 1 - Think of how you became aware of them, why you bought them, why you them, why you bought them, why you prefer them, how you feel about them ... prefer them, how you feel about them ...

• 2 - List them as they come to your mind 2 - List them as they come to your mind • 3 - Chose one brand you are very familiar 3 - Chose one brand you are very familiar

with :with :. What does this Brand do for you?. What does this Brand do for you?. What does it MEAN to you?. What does it MEAN to you?. How do you relate to it ? …. How do you relate to it ? …

• 4 – Main characteristics of a world 4 – Main characteristics of a world without Brands ?without Brands ?

“What is the best …”

• Who makes the best …. Automobile ?• ………• Do you own one ?• Have you ever owned one ?• Have you ever driven one ?• Do you know anybody who owns

one ?• How do you know ….. It is the best ?

Brand is an experience

• A brand is essentially a container for a costumer’s complete experience with the offer and the company. (Sergio Zyman)

What is a Brand

User

Culture Personality

Attributes Benefits Values

The Brand as an Open System.

Competition

(Core) Offer(Tangible Products & Services)

.Scope.Attributes

.Uses.Quality/

Value.Functional

Benefits

Organization’s associations

Relationships withcustomers

Skills

CorporationEconomy …

Chanels, contacts…

TribesCulturesGroups …

NameOrigin

Self-expressive benefits

Emotional benefits

User Imagery

Personality

Symbols

User Imagery

This Brand System interacts AS ...

1) .. A SOCIO-ECONOMIC AGENTA SOCIO-ECONOMIC AGENT

2) .. A CORPORATE ASSETA CORPORATE ASSET

3) .. A STRATEGIC MARKETING A STRATEGIC MARKETING TOOLTOOL

4) .. A COMMUNICATING &A COMMUNICATING & SELLING AGENT SELLING AGENT

THE BRAND AS A SOCIO-THE BRAND AS A SOCIO-ECONOMIC AGENTECONOMIC AGENT

• PART OF EACH INDIVIDUAL’S PART OF EACH INDIVIDUAL’S AND SOCIETAL AND SOCIETAL GROUPS ’ GROUPS ’ SET OF REFERENCES SET OF REFERENCES

• A POWERFUL SOCIAL DRIVERA POWERFUL SOCIAL DRIVER• A GLOBAL CIMENTA GLOBAL CIMENT• A VALUE ADDING ECONOMIC A VALUE ADDING ECONOMIC

AGENTAGENT

Brand Strategic Role

• Brand • Equity

Cash flowbooster

ConsumerResponseBooster

THE BRAND AS A CORPORATE THE BRAND AS A CORPORATE ASSETASSET

• A PROTECTED PROPERTY (PROTECTED PROPERTY (owner's right to use))

• BOOK VALUE, GOODWILL. ASSET that BOOK VALUE, GOODWILL. ASSET that can be can be sold and bought sold and bought

• MARKETING « NON TANGIBLE » ASSETMARKETING « NON TANGIBLE » ASSETprecisely measurable and valuable precisely measurable and valuable (when (when brand is on sale) : brand is on sale) :

• STRENGTH , LEADERSHIP & EQUITY, STRENGTH , LEADERSHIP & EQUITY, ie ie capacity to justify price.capacity to justify price.

Brand Asset Value

THE BRAND AS A KEY THE BRAND AS A KEY STRATEGICSTRATEGIC

MARKETING TOOL MARKETING TOOL- BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLEBRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE Adaptable to changing environments and Adaptable to changing environments and technologiestechnologies

* SUPPORT OF LONG-TERM TIES WITH PEOPLE* SUPPORT OF LONG-TERM TIES WITH PEOPLE

* ALLOWS LOWER COST for NEW ENTRIES* ALLOWS LOWER COST for NEW ENTRIES

* UNIQUE SPOKESMAN TO ALL PUBLICS* UNIQUE SPOKESMAN TO ALL PUBLICS

* * JUSTIFIES HIGHER PRICE & MARGINSJUSTIFIES HIGHER PRICE & MARGINS

Product Levels?

Core benefits – fundamental need or want.

Generic product – basic offering.

Expected product – normal expectation from a product in the market.

Augmented product – differentiating and distinguishing attributes, benefits, or related service.

Potential product – ideal and in future.

Branding - benefits?Consumers Manufacturers

Identification of source Means of identification for handling or tracing

Assignment of responsibility Legal protection

Risk reducer – functional, physical, financial, social, psychological, and time

Signal of quality to consumers

Search cost reducer Endowing product with unique association

Promise, bond, or pact Competitive advantage

Symbolic, cultural Source of financial return

Signal of quality

Branding is Universal (anything can be branded)

Commodity – Chicken, Coffee, salt, fruits, vegetables, water, etc.

Physical good - Consumer products; Business to Business; High-tech products.

Services – KPMG, Citi, Airlines, Energy firms, etc.

Retailers and distributors – Sears, Wal-Mart, private or store brands.

On-line product and services – google, e-bay, etc.

People and Organizations – Paul Newman.

Sports, Arts, and Entertainment – Cowboys?

Geographic Locations – Australia, Alaska.

Ideas and Causes – Red Cross, NRA.

Determinants of Brand Longevity

Vision of the mass market?

Managerial persistence?

Financial commitment?

Relentless Innovation?

Asset leveraging.

Some Challenges…

Savvy consumers, maturing market, decreasing brand

loyalty.

Brand proliferation, complex brand families, .

Media fragmentation, eroding traditional media, new

options, changes in advertising and promotional expenditures.

Increased competition, difficulty differentiating, private

labels.

Increased cost, increasing trade power.

Increased accountability, job turn-over.

Next?

Brand Equity – financial value, intangible value, loyalty,

consumer perception, consistent behavior???

Why Brand Equity?

• Positive brand equity leads to:– Loyalty– Larger Margins– Greater Trade Support– More Efficient Communications / Marketing– Resiliency to Crises– Licensing Opportunities– Brand Extension Opportunities – Reduced Vulnerability to Competition– Greater financial returns

The Value of Brand Equity

Brand Equity

• Sources of Brand Knowledge– Associative node model of memory– Brand awareness– Brand image

• Strength of brand associations• Favorability of brand associations• Uniqueness of brand associations

Corporate Awareness

Brand Associations

• Stolichnaya– Experienced– Self-assured– Successful– Male– Lexus– Not-trendy

• Absolut– Young– Contemporary– Flashy– Male– Bars– Advertising or arts

Evolution of Brand Elements, GE

• 1876-1960’s electronics• 1900 trademark’s logo• 1900 slogan – Better Living Electronically• 1960’s General Electric -> GE• 1970’s slogan – Progress for People• 1979 slogan – We Bring Good Things to Life

Brand Equity

• But how does one develop brand equity?• The goal of this course is to learn how to manage

brands (via marketing programs) in order to create brand equity - that is, create an enduring advantage for your brands.

• Strategic Brand Management Process:

1. Identifying and Establishing brand position and values.

2. Planning and Implementing brand marketing programs.

3. Measuring and interpreting brand performance.

4. Growing and sustaining brand equity.

Greater loyalty

Less vulnerability to competitive marketing actions and crises

Larger margins

More elastic response to price increases

More inelastic response to price increases

Increased marketing communica- tion efficiency and effectiveness

Possible licensing opportunities

More favorable brand extension evaluations

Building Customer-Based Brand Equity

TOOLS AND OBJECTIVES KNOWLEDGE EFFECTS BENEFITS

Choosing Brand Elements (4)Brand name Logo MemorabilitySymbol MeaningfulnessCharacter TransferabilityPackaging AdaptabilitySlogan Protectability

Brand Awareness (2)

Possible Outcome

Brand Associations (2&3)

Developing Marketing Programs (5 & 6)

Leverage of Secondary Associations (7)

Depth Recall Recognition

Breadth PurchaseConsumption

Strong RelevanceConsistency

Favorable DesirableDeliverable

Unique Point of parityPoint of difference

Product Functional & symbolic benefitsPrice Value perceptionsDistribution channels Integrate “Push” & “Pull”Communications Mix and match options

CompanyCountry of originChannel of distribution AwarenessOther brands MeaningfulnessEndorsor TransferabilityEvent

}

}

Building Equity

1. Determine brand knowledge structuresa. Breadth of awareness (brand salience)b. Positioning (points of parity/difference)c. Image (strong & favorable brand associations)

2. Develop marketing programs3. Integrate across product lines and geographies4. Measure and control

a. Feelings/judgments/loyalty

Brand Value: Brand Hierarchy Pyramid

Beliefs & Core

Values

Benefits

Features & Attributes

The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL)

The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE)

Product/Service features and/or attributes that must be addressed (FUNCTIONAL)

Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers

Easy to deliver and explain to consumers but also easy to imitate

Brand Management

• Brand management is the act of designing and implementing marketing programs to build and maintain brand equity.– Product– Price– Distribution– Communications

The Role of a Brand or Product Manager

• Prepare Marketing Plan• Develop Copy, Programs, and Campaigns• Stimulate Sales and Distribution• Market Intelligence• Product Improvements

• Pluses- Cost effective mix, quick market reaction, attention for small brands, good training for executives

• Minuses- Conflict and frustration (responsibility and no authority), administrative work with executive expectations, learns products not functions, short horizon, costs of associates and assistants

The Role of a Brand or The Role of a Brand or Product ManagerProduct Manager

A Product Manager -Computer Software Firm

• Typical day– Meetings - new product line, marketing mix,

marketing staff, organizational design and integration

– E-mail/Phone - 3rd party developers, sales force, product support

• Marketing planning - drafting the marketing plan

A Product ManagerComputer Software Firm

• Marketing mix - recommends price to corporate committee, manages advertising, conducts focus groups for product positioning and development, decides on channels

A Product Manager -Consumer Packaged Goods Firm

• Typical day– 75% fighting fires, 25% planning

• Marketing planning - key is volume forecasting since unsold inventory is perishable

• Mix - 1/3 on pricing issues (list & trade), 20% on consumer promotions, president handles ads, 15% on distribution, little on sales and service

A Product ManagerPackaged Goods Firm

• Marketing mix - recommends price to corporate committee, manages advertising, conducts focus groups for product positioning and development, decides on channels.

Brand Management Issues

ProductManager

Manufacturing

R&D

Legal

Fiscal

MarketResearch

Salesforce

Publicity

Purchasing Packaging

PromotionServices

Media

AdvertisingAgency

Distribution

The Nature of the Job

Project

Staring Point:

Brand perception about:

Brand features and attributes - awareness?

Brand benefits – needs & expectations?

Brand values - associations?

Paswan

PRODUCT LEVEL

LEVEL ???

BRAND Name/PositioningPotential Product

Augmented Product

Expected Product

Generic Product

Core Benefit