Post on 27-Jan-2015
description
Strategic Brand Management
WELCOME!!
Soni Simpson
“Brand Team” Introductions Name
Personal Demographics
– Who You Work for
– What You Do All Day
– Undergraduate Focus
– What Degree You’re Working on
What Courses You’ve Completed/Are In
Personal Psychographics
– Something Fun/Unique About Yourself
– What Motivates You
– Why You’re Here Tonight
Communicate your
personal brand essence
and call to action
In :30 please…
Course Overview
What Do You Think You’re Going to Learn this Quarter?
We’re going to define and refine our thinking about brands, what they are and how to manage them
We’ll build off text, industry experts & studies, guest lecturers, real life experience and class exercises
09/10/03 AGENDA
Top Brands
Brand vs Product vs Company
Product Levels
Brand Definition
Brand Relevance
Power and Corporate Brands
Brand Equity
Brand Value
Good To Great Companies/Hedgehog
Strategic Brand Management
TACTICAL Application
•Brand Share
•Brand Management
•Brand Management Task Models
•IN CLASS CASE STUDIES
•Self Positioning
•Du Pont Case Study
•Due Next Week
Strategic Brand Management
The World's 10 Most Valuable Brands - 2002
VALUE ($billions)
1 COCA-COLA 69.6
2 MICROSOFT 64.1
3 IBM 51.2
4 GE 41.3
5 INTEL 30.9
6 NOKIA 30.0
7 DISNEY 29.3
8 McDONALD'S 26.4
9 MARLBORO 24.2
10 MERCEDES 21.0
Data: Interbrand Corp., J.P. Morgan Chase & Co /
Business Week AUGUST 5, 2002
Interbrand’s Assessment
is of Brand Power – the
fullest possible view of
each brand’s strengths
and potential as a
marketing and financial
asset.
Strategic Brand Management
The Top 10 Global Marketers - 2002
Ad Spending Outside US (MMs)
1 UNILEVER 2,967
2 PROCTOR & GAMBLE 2,610
3 NESTLE 1,560
4 TOYOTA 1,345
5 VOLKSWAGON 1,290
6 COCA-COLA CO. 1,176
7 FORD MOTOR CO. 1,127
8 GENERAL MOTORS 1,028
9 PSA PEUGEOT CITROEN 1,004
10 FIAT 998
Data: Global Marketers (Ad Age Global, 11/01)
Ranks advertisers by estimated total measured advertising outside the US
Ad Age Fact Pack; Sept 9, 2002
Strategic Brand Management
The Top 10 Global Marketers - 2002
Ad Spending Outside US (MMs)
1 UNILEVER 2,967
2 PROCTOR & GAMBLE 2,610
3 NESTLE 1,560
4 TOYOTA 1,345
5 VOLKSWAGON 1,290
6 COCA-COLA CO. 1,176
7 FORD MOTOR CO. 1,127
8 GENERAL MOTORS 1,028
9 PSA PEUGEOT CITROEN 1,004
10 FIAT 998
Data: Global Marketers (Ad Age Global, 11/01)
Ranks advertisers by estimated total measured advertising outside the US
Ad Age Fact Pack; Sept 9, 2002
The World's 10 Most Valuable Brands - 2002
VALUE ($billions)
1 COCA-COLA 69.6
2 MICROSOFT 64.1
3 IBM 51.2
4 GE 41.3
5 INTEL 30.9
6 NOKIA 30.0
7 DISNEY 29.3
8 McDONALD'S 26.4
9 MARLBORO 24.2
10 MERCEDES 21.0
Data: Interbrand Corp., J.P. Morgan Chase & Co /
Business Week AUGUST 5, 2002
Strategic Brand Management
The Top 10 US Mega Brands - 2002
US Ad Spending ($MM)
1 AT&T 996.6
2 Verizon 824.4
3 Chevrolet 780.4
4 Ford 655.9
5 Mc Donald’s 635.1
6 Sprint 620.4
7 Toyota 568.3
8 Sears 511.5
9 Dodge 499.2
10 Chrysler 474.4
Data: Megabrands, AA July 22, 2002
Media Dollars excluding promotion & direct marketing expenses
Ad spending for CY2001
Strategic Brand Management
The Top 10 US Advertisers - 2002
US Ad Spending ($BIL)
1 General Motors 3.37
2 P&G 2.54
3 Ford 2.41
4 Pepsi Co 2.21
5 Pfizer 2.19
6 Daimler-Chrysler 1.99
7 AOL Time Warner 1.89
8 Philip Morris 1.82
9 Walt Disney 1.76
10 Johnson & Johnson 1.62
Data: 100 Leading National Advertisers (AA June 24, 2002)
Ad spending for CY2001 includes advertising, promotion and direct marketing expenses
Strategic Brand Management
The Top 10 US Mega Brands - 2002
US Ad Spending ($MM)
1 AT&T 996.6
2 Verizon 824.4
3 Chevrolet 780.4
4 Ford 655.9
5 Mc Donald’s 635.1
6 Sprint 620.4
7 Toyota 568.3
8 Sears 511.5
9 Dodge 499.2
10 Chrysler 474.4 Data: Megabrands, AA July 22, 2002
Media Dollars excluding promotion & direct marketing expenses
Ad spending for CY2001
The Top 10 US Advertisers - 2002
US Ad Spending ($BIL)
1 General Motors 3.37
2 P&G 2.54
3 Ford 2.41
4 Pepsi Co 2.21
5 Pfizer 2.19
6 Daimler-Chrysler 1.99
7 AOL Time Warner 1.89
8 Philip Morris 1.82
9 Walt Disney 1.76
10 Johnson & Johnson 1.62
Data: 100 Leading National Advertisers (AA June 24, 2002)
Ad spending for CY2001 includes advertising, promotion and direct marketing expenses
What is a Product? Kotler’s
Five
levels to a
product:
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
What is a Product? Kotler’s
Five
levels to a
product:
CORE BENEFIT
Generic Product
Expected Product
Augmented Product
Potential Product
The
Fundamental
Need or Want
that consumers
satisfy by
consuming the
product or
service
What is a Product? Kotler’s
Five
levels to a
product:
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
Generic Product
Basic Version
of the product
containing only
those elements
absolutely
necessary to
function. No
distinguishing
features.
What is a Product? Kotler’s
Five
levels to a
product:
CORE BENEFIT
Augmented Product
Potential Product
Generic Product
Expected Product
Attributes and
Characteristics
that buyers
normally expect
and agree to
when they
purchase a
product
What is a Product? Kotler’s
Five
levels to a
product:
CORE BENEFIT
Potential Product
Generic Product
Expected Product
Augmented Product
Additional
product
attributes,
benefits, or
related services
that distinguish
the product
from
competitors
What is a Product? Kotler’s
Five
levels to a
product:
CORE BENEFIT
Generic Product
Expected Product
Augmented Product
Potential Product All the
augmentations
and
transformations
that a product
might
ultimately
undergo in the
future
What is a Product? Kotler’s
Five
levels to a
product:
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
The Fundamental Need or Want
that consumers satisfy by
consuming the product or service
Generic Product Basic Version of the product
containing only those elements
absolutely necessary to function.
No distinguishing features.
Expected Product Attributes and Characteristics that
buyers normally expect and agree
to when they purchase a product
Augmented Product Additional product attributes,
benefits, or related services that
distinguish the product from
competitors
Potential Product
All the augmentations and
transformations that a product
might ultimately undergo in the
future
What is a Brand?
Not simply a product -- anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want.
A product can be:
– Physical good
– Service
– Retail Store
– Person
– Organization
– Place
– Idea
What is a Brand?
Product = Commodity
A product is a produced item always
possessing these characteristics:
• Tangibility
•Attributes and Features
Brand = “Mind Set”
The sum of all communications and experiences received
by the consumer and customer resulting in a distinctive
image in their “mind set” based on perceived emotional
and functional benefits.
Timothy D. Ennis, Ennis Associates, Inc
What is a Brand?
Derivation
– Old Norse “brandr” = to burn
– branding livestock
Heritage
– A means to distinguish goods from one producer vs another.
AMA (technical definition)
– “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”
What is a Brand?
AMA defines a brand vs a Brand.
What does the AMA definition leave out?
What is a Brand?
Keller’s Definition:
– A product, but one that adds other dimensions that
differentiate it in some way from other products
designed to satisfy the same need.
Rational and tangible
Symbolic, emotional and intangible
The psychological response to a brand can be as
important as the physiological response.
What is a Brand?
Product = Commodity
A product is a produced item always
possessing these characteristics:
• Tangibility
•Attributes and Features
Brand = “Mind Set”
The sum of all communications and experiences received
by the consumer and customer resulting in a distinctive
image in their “mind set” based on perceived emotional
and functional benefits.
Timothy D. Ennis, Ennis Associates, Inc
MANUFACTURERS
ID to simplify handling or tracing
Legal protection of unique features
Signal of quality level to satisfied customers
Means of endowing products w/unique associations
Competitive Advantage
Financial Returns
CONSUMERS
ID Product Source
Assignment of
responsibility to maker
Risk reducer
Search cost reducer
Promise, bond, or pact
w/make of product
Symbolic Device
Signal of Quality
Why Does A Brand Matter?
What is a Brand?
Products don’t exist in a void…
They are bought because consumers have
found something they relate to in them,
something which they value
Brand = Credible Guarantee
What is a Brand?
Relative Brand Distinction
– The more distinctive or different a brand is in
the consumers “mind set”, the stronger brand
preference becomes. This is critical to keeping
competition from the consumer’s consideration.
Strong Brand
Perceived by the
Consumer as
Unique
Products
(Commodities)
No Difference
Except Price
Brand
Name
Well Known
But Similar
Brand
Distinctive
Timothy D. Ennis, Ennis Associates, Inc
What is a Brand?
Relative Brand Distinction
– A brand’s preference is primarily built through
differentiation and relevance
– Insulate product from competition
– OWN Something
Products
(Commodities)
No Difference
Except Price
Brand
Name
Well Known
But Similar
Brand
Distinctive
Strong Brand
Perceived by the
Consumer as
Unique
Timothy D. Ennis, Ennis Associates, Inc
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product Kotler’s Five Levels
of A Product
What is a Brand?
Products
(Commodities)
No Difference
Except Price
Brand
Name
Well Known
But Similar
Brand
Distinctive
Strong Brand
Perceived by the
Consumer as
Unique
BRAND DISTINCTION by Timothy D. Ennis
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product Kotler’s Five Levels
of A Product
What is a Brand?
Products
(Commodities)
No Difference
Except Price
Brand
Name
Well Known
But Similar
Brand
Distinctive
Strong Brand
Perceived by the
Consumer as
Unique
BRAND DISTINCTION by Timothy D. Ennis
OWN Something
What is a Brand?
What Makes the Best Brands?
– Source of company wealth for generations
– Improves with Age
– Develop clearly defined personalities
– Develop affection & loyalty of the public
– Become parents to sub-brands and brand extension
Brands = Powerful emotional tools
What Is a Brand?
Truly understood brands are the things
which patrol the boundary between people
and the world outside them.
A brand with an emotional difference can
potentially command a premium forever.
Strategic Brand Management
Case Groups Definition:
Product
Service
Corporation
Brand
Strategic Brand Management
Corporation vs
Service vs Product
vs Brand
Alternative Branding Models
Company dominates Brands
Company is equal to Brands
Brands dominate the Company
American Express (cards)
BMW (Motorcycles)
Colgate (Total toothpaste)
Disney (Films)
General Electric (appliances)
IBM (Technology)
L’Oreal (Cosmetics)
Sony (Electronics)
Holiday Inn (Crowne Plaza)
Anheuser Busch = Budweiser
Campbell Soup = Godiva
Chrsyler = Jeep
Estee Lauder = Clinique
Kraft = Maxwell House
PepsiCo = Mountain Dew
Time Warner = Warner Bros
3M = Scotch Tape
Marriott = Courtyard
Skol (Am Bev)
Claridge Hotel (Savoy)
Crest (P&G)
Healthy Choice (Con-Agra)
Hidden Valley Ranch (Clorox)
Kleenix (Kimberly-Clark)
Marlboro (Philip Morris)
MCA Records (Universal
Studios)
Wranlger (VF Jeans)
Kevin Clancy, Copernicus
POWER BRANDS
The World's 10 Most Valuable Brands - 2002
VALUE ($billions)
1 COCA-COLA 69.6
2 MICROSOFT 64.1
3 IBM 51.2
4 GE 41.3
5 INTEL 30.9
6 NOKIA 30.0
7 DISNEY 29.3
8 McDONALD'S 26.4
9 MARLBORO 24.2
10 MERCEDES 21.0
Data: Interbrand Corp., J.P. Morgan Chase & Co /
Business Week AUGUST 5, 2002
Interbrand’s Assessment
is of Brand Power – the
fullest possible view of
each brand’s strengths
and potential as a
marketing and financial
asset.
The Successful Brands
– Don’t JUST sell products
– Communicate Clear Values
– Stretch Across a Number of Products
– Attached to Consumers/ NOT Products
– Individualized Relationships
POWER BRANDS
Allow Consumers to clearly identify and specify products which genuinely offer added value.
Deep respect for the way products fit into consumer’s lives = “core” of success
Consumer Relationship = Loyalty
Social Changes in their favor
POWER BRANDS
RIGHT MIX = Organization Excellence + Marketing Sensitivity + Long-term Commitment
Brand Values Transcend National Cultures
Emphasize Classlessness, Service, Consistency
– Coke and Mc Donald’s demonstrate most
POWER BRANDS
Assessing BRAND POWER
POWER BRANDS
Interbrand
BRAND DEPTH
BRAND WEIGHT
POWER
The influence or dominance that a brand has over its category or market (more than just market share)
Assessing BRAND POWER
POWER BRANDS
Interbrand
BRAND WEIGHT
The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category)
Assessing BRAND POWER
POWER BRANDS
Interbrand
The breadth of franchise that
the brand has achieved both in
terms of age spread, consumer
types and international appeal
Assessing BRAND POWER
POWER BRANDS
Interbrand
Assessing BRAND POWER
POWER BRANDS
Interbrand
BRAND DEPTH
The degree of commitment that the
brand has achieved among its
customer base and beyond. The
proximity, the intimacy and the
loyalty felt for the brand.
Assessing BRAND POWER
POWER BRANDS
Interbrand
BRAND DEPTH
BRAND WEIGHT
POWER
Power Brand = Master Brand?
Manifestation of Brand Essence
A term that USED TO apply only to
overarching family brands (Nestle)
NOW applies to entire companies that rally
around a single brand identity
– Focus on entire value proposition rather than a
single product’s functionality
Branding the Corporation
Brands are not just products but companies:
– Ford
– IBM
– Sony
Why has marketing refocused efforts on the
potential of corporate brands?
Cost of creating and supporting product
brands has become prohibitive
– $1Bil to develop a brand across US, EC, FE
Increasing retailer power
Traditional brand management not as
effective/efficient
Focus moving up the value chain
Branding the Corporation
Master Branding the Corporation Enhances Brand…
Clarity
– Clear brand priorities
Synergy
– Every exposure generates awareness
Leverage
– Corporate brand in all Company strategies
Brand Relationship Spectrum
Thus, Benefits of Corporate Branding:
– Every marketing dollar benefits each one of a company’s division/products
– Attracts and inspires employees, stakeholders and business partners
– Supplier and Vendor relationships deeper and longer term
– Connects up goodwill generated by operations + adds public support/PR in crisis
Branding the Corporation
Benefits of Corporate Branding:
– New product launches/extensions cheaper and
quicker
– Long Term strategic focus
– Financial performance and value creation can be
enhanced
Branding the Corporation
What Might be Some of the Difficulties?
– Organizations can be extremely complex
– Wide variety of audiences make consistent
proposition communication difficult
– Too many businesses: Easier to build a rep &
image when one is known for one product or
service
Branding the Corporation
What Might be Some of the Difficulties?
– Led from the top. CEOs are difficult to pin
down for day-to-day brand management
– Business Directors often have finance or
operations backgrounds – not marketing
Branding the Corporation
Class Examples of Master Brands
Master Brands
Branding
Different outcomes result from the
marketing of a product or service because of
its
– brand name
– brand element
– brand identification
– WHAT ELSE?
Brand Equity
Common Denominator to interpret the
potential effects and trade offs of various
strategies and tactics
Common Denominator for assessing the
value of a brand
Brand Equity
Fundamentally, stresses the importance of the role of the brand in marketing strategies.
Marketing effects uniquely attributed to the brand
Represents the ADDED VALUE endowed as a result of past marketing investments.
Bridge between the past and future possibilities
Brand Equity
A set of stored values that consumers
associated with a Product/Service.
These associations add value beyond the
basic product functions due to past
investments in marketing the Brand.
Timothy D. Ennis, Ennis Associates, Inc
Brand Equity
How can Brand Equity be created?
How can Brand Equity be measured?
How can Brand Equity be used to expand
business opportunities?
Brand Equity
Brand Ingredients:
– Brand Name & heritage
– Packaging (structure & graphics) & signage
– Brand symbols, properties and logos
– Perceived quality, reliability & convenience
– Defined level of satisfaction
– Meaningful (premium) price/value relationship
– Purchase & usage experiences
– Consumer perceptions, attitude & behaviors
– Emotional associations with the product/services
Timothy D. Ennis, Ennis Associates, Inc
BRAND GESTALT
Brand Equity
Physical
Product
Attributes
Quality
Uses
Brand
Personality
Logo Visual
Appearance
Country of
Origin
User
Imagery Tangible
Benefits
Emotional
Benefits
Brand Customer
Relationship
Kevin Clancy, Copernicus
modified by Soni Simpson
The Coca-Cola Brand Is…
1800’s Heritage The Real Thing
Americana Red & White Striped Can
Vanilla Coke Sold Everywhere
Authenticity Battles with Pepsi
Brand Equity
The Mc Donald’s Brand Is…
The Big Mac Happy Meals
French Fries Red and White Restaurants
Fun For Children Ronald Mc Donald
Golden Arches Value for Your Money
Brand Equity
A synthesis of all elements, physical,
aesthetic, rational AND emotional.
End result =
– appropriate
– differentiated
– relevant
Brand Equity
Brand Imposing One’s Will
On
The Consumer
Branding
OLD
SCHOOL
THINKING
DIPLOMA
“ Pretty much everything today can be seen in
relation to a love-respect axis. You can plot any
relationship – with a person, with a brand – by
whether it’s based on love or based on respect. It
used to be that a high respect rating would win.
But these days, a high love rating wins. If I don’t
love what you’re offering me, I’m not even
interested.” - Kevin Roberts, Saatchi and Saatchi
Branding
TradeMark
Branding Love *
Mark
Trust-Mark
Those Brands which are
particularly well adapted to
the environment and which
thus, survive and flourish.
POWER BRANDS
•Attached to Consumers
•Deep respect
for the way products
fit into Consumer’s lives
= “Core” of Success
Brand Equity
A set of stored values that consumers
associated with a Product/Service.
These associations add value beyond the
basic product functions due to past
investments in marketing the Brand.
Timothy D. Ennis, Ennis Associates, Inc
Brand Value Breakdown
0
20
40
60
80
100
120
Coca-
Cola
J&J P&G Unilever Amazon
INTANGIBLE &Goodwill
Net TANGIBLEAssets
$US Billions
Measurable Financial Value
Legal Systems recognize brand value
– Most countries now recognize intellectual
property is REAL property w/rights of
ownership
Trademarks, Patents, Designs, Copyright
Consumer Value
Brand Value
Brand Value
Multiple values for a brand
Communicated through every medium from shelf to advertising to editorial to word-of-mouth.
Coca-cola – Bottle shape
– Can color
– Logo type face
– Taste
– Youthful messages
– FORMULA
Are Brand Values Equal?
Brand Value
Three Tiers of Brand Value
– Functional Values
– Expressive Values
– Central Values
Interbrand; The World’s Greatest Brands.
Central
Expressive
Functional
Brand Value Corresponding to
Brand Hierarchy Pyramid
Brand Value
Functional Values:
– Govern product performance
Coke refreshes its drinker
Volvo gives its driver a safe ride
IBM PC provides quick computing
– Don’t differentiate products
Pepsi refreshes
Mercedes is as safe as Volvo
Apple is as quick as IBM
– Brand Owner’s “bright ideas” can be instantly copied in every continent
Interbrand; The World’s Greatest Brands.
Brand Value
Expressive Values:
– Say less about the product & more about the consumer
– Reflect and enhance the consumer’s sense of him/herself
– Provide a key source of brand differentiation
Marlboro’s - masculine values
Armani’s - status and fashionable values
Apple - creative and human values
Interbrand; The World’s Greatest Brands.
Brand Value
Central Values:
– Most Enduring
– Right to the Core of the Consumer’s Belief System
– At their purest = embodied in religious, national or
political persuasions
– Comparable power = embody mass movements or
cultural trends
1960’s Coke “I Like to teach the world to sing”
Today= Nike “Just Do It”, Richard Branson’s Irreverent Virgin
Interbrand; The World’s Greatest Brands.
Brand Value Corresponding to
Brand Hierarchy Pyramid
Central
Expressive
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
Interbrand; The World’s Greatest Brands.
Central
Expressive
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
Beliefs &
Core
Values
Benefits
Features &
Attributes
Brand Value Corresponding to
Brand Hierarchy Pyramid
Hierarchy : Timothy D. Ennis, Ennis Associates, Inc
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
Mc Cormick: The Taste You Trust
Brand Value:
Brand Hierarchy Pyramid
CENTRAL VALUE
Beliefs and Core Values
EXPRESSIVE
Benefits
FUNCTIONAL
Features & Attributes
I take
pleasure in
how the
family enjoys
the meals I
prepare
Brand I Trust / Taste You Trust
Part of making food my way
Makes a meal/dish an eating pleasure
Makes prepared meals taste better
Brings out the best in foods
Let me adjust to make it my own * Can be used with any dish
* Adds flavor, Spicy * For everyday use * Has a lot of
products I use * Easy to find when shopping *
Largest variety of spices, extracts, dry seasonings, and mixes
Brand Hierarchy Pyramid vs
Product Level
Beliefs &
Core
Values
Benefits
Features &
Attributes
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
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
Brand Value
OK…Values are Essential…BUT
Are they enough?
What is missing??
Brand Value
Values Need to be Harnessed & Honed
The Force
– Brand Builder’s Vision
– Big Idea
– Conviction
Brand Vision
To build successful brands while
your competitors turn their brands
into commodities start with a five-
step process
Kevin Clancy, Copernicus, Counter Intuitive
Brand Building
Kevin Clancy Copernicus’s 5 Step Process
Inspirational
Vision
Transform-
ational
Strategy
Model-Based
Marketing
Planning
Obsessive
Implement-
ation
Diagnostic
Metrics
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
Brand Vision LIFTS the Brand above the
mundane and functional
Appeals to Expressive and Central
VALUES
Process creates a bond with the consumer,
and hopefully, long-term loyalty
Brand Vision
The First thing you need to do is create a
marketing vision to rally your forces.
“Where there is no vision, the
people perish.”
Proverbs 29:18
Brand Vision
“Something supposedly seen by other than normal sight”
“The ability to see something not actually visible”
“A force or power of imagination”
“The experience of having a revelation”
“Something supernaturally revealed as to a prophet”
Brand Vision
MUST BE:
Exciting, even inspirational, to all of your
stakeholders: customers and prospective
customers, managers and employees,
analysts, reporters – everyone.
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
MUST BE:
So big, so bold and so audicious that
expressing it – never mind executing it –
has a transformational effect. You start to
become what you want to be. The dream
and the reality fuse. Kevin Clancy, Copernicus, Counter Intuitive
i.e. YOU NEED A BIG HAIRY VISION
Brand Vision Checklist
Inspirational & uplifting; it moves people
Exciting; it gets the blood pumping
Aspirational; it is barely attainable
Readable; it is clearly communicated
Unique/special/different
Very specific, not general
Connotes superiority or domination
Bold and brash; it oozes with confidence
Causes people to want to invest in/work for the company or buy the company’s products
Transformational, revolutionary, not evolutionary
Brand Vision
Let’s review some published vision
statements
Assign them a college grade from
0 to 100.
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A beverage company
“We exist to create value for our shareholders
on a long-term basis by building a business
that enhances the company’s trademarks.”
Kevin Clancy, Copernicus, Counter Intuitive
Grade = 63
Brand Vision
A beverage experience company
“To have bigger brand awareness then
Coca-Cola.”
David Sutton, Zyman Marketing
Big Hairy
Audacious Goal
Brand Vision
A motorcycle company
“Yamaha Wo Tsubusa!”
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
A motorcycle company
“We will crush, squash, slaughter Yamaha!”
Kevin Clancy, Copernicus, Counter Intuitive
Grade = 85
Brand Vision
A technology company
“To eclipse IBM as the #1 technology
company in the world.”
Kevin Clancy, Copernicus, Counter Intuitive
Grade = 91
Brand Vision
A gasoline company
“We will become the dominant brand in the
service station industry and beyond – with
the friendliest, fastest, cleanest stations
everywhere – one of the most admired
brands on the planet.”
Kevin Clancy, Copernicus, Counter Intuitive
Grade = 96
VISION to ASSET LEVERAGE
Tellis and Golder five factors and rationale
as the keys to enduring brand leadership
Gerard Tellis & Peter Golder “First to Market, First to Fail? Real Causes of
Enduring Market Lendership” MIT Sloan Management Review, 1/1/96
Vision of
the Mass
Market
Managerial
Persistence
Financial
Commit-
ment
Relentless
Innovation
Asset
Leverage
Brand Building
Kevin Clancy Copernicus’s 5 Step Process
Inspirational
Vision
Transform-
ational
Strategy
Model-Based
Marketing
Planning
Obsessive
Implement-
ation
Diagnostic
Metrics
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision
MUST BE:
So big, so bold and so audicious that
expressing it – never mind executing it –
has a transformational effect. You start to
become what you want to be. The dream
and the reality fuse. Kevin Clancy, Copernicus, Counter Intuitive
i.e. YOU NEED A BIG HAIRY VISION
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product Kotler’s Five Levels
of A Product
What is a Brand?
Products
(Commodities)
No Difference
Except Price
Brand
Name
Well Known
But Similar
Brand
Distinctive
Strong Brand
Perceived by the
Consumer as
Unique
BRAND DISTINCTION by Timothy D. Ennis
OWN Something
Assessing BRAND POWER
POWER BRANDS
Interbrand
BRAND DEPTH
BRAND WEIGHT
POWER
The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category)
Assessing BRAND POWER
POWER BRANDS
Interbrand
POWER COMPANIES
The World's 10 Most Valuable Brands - 2002
VALUE ($billions)
1 COCA-COLA 69.6
2 MICROSOFT 64.1
3 IBM 51.2
4 GE 41.3
5 INTEL 30.9
6 NOKIA 30.0
7 DISNEY 29.3
8 McDONALD'S 26.4
9 MARLBORO 24.2
10 MERCEDES 21.0
Data: Interbrand Corp., J.P. Morgan Chase & Co /
Business Week AUGUST 5, 2002
GOOD – TO –GREAT CASES
Results T +15 yr*
1 Abbott 3.98x
2 Circuit City 18.5x
3 Fannie Mae 7.56x
4 Gillette 7.39x
5 Kimberly-Clark 3.42x
6 Kroger 4.17x
7 Nucor 5.16x
8 Philip Morris 7.06x
9 Pitney Bowes 7.16x
10 Walgreens 7.34x
11 Wells Fargo 3.99x
Data: Ratio of cumulative stock retruns relative to the general stock market
Jim Collins, Good To Great
Brand Vision
HEDGEHOG Concept
The Essential Strategic Difference between
the Good-to-Great companies:
– Founded their strategies on deep understanding
along three key dimensions
– Translated that understanding into a simple,
crystalline concept that guided all their efforts
i.e. YOU NEED A BIG HAIRY VISION
Jim Collins, Good To Great
Brand Vision
Jim Collins, Good To Great
What are you deeply
Passionate About
What you Can
be The Best in
the World at
What Drives
Your
Economic
Engine
A Hedgehog Concept:
•Is not a goal to be the best,
•not a strategy to be the best,
•not an intention to be the best
•not a plan to be the best
•It is AN UNDERSTANDING
of what you CAN be the best
at.
Brand Vision
What are you deeply
Passionate About
What you Can
be The Best in
the World at
What Drives
Your
Economic
Engine
A Hedgehog Concept
“Focusing solely on what
you can potentially do
better than any other
organization is the only
path to greatness.”
…Equally important they
know what they cannot
be best at.
…It is an understanding
Jim Collins, Good To Great
BHAG
Brand Vision
What are you deeply
Passionate About
What you Can
be The Best in
the World at
What Drives
Your
Economic
Engine
A Hedgehog Concept
“Good to Great
Companies know they
should only do those
things that they can get
passionate about.”
“They asked the right
questions.”
Jim Collins, Good To Great
BHAG
Brand Vision
What are you deeply
Passionate About
What you Can
be The Best in
the World at
What Drives
Your Economic
Engine
BHAG
Jim Collins, Good To Great
BIG HAIRY
VISIONS &
GOALS
• Bad BHAGs
set with
bravado,
• Good BHAGS
set with
understanding
Branding
How do we measure one brand’s
performance vs another brand?
Branding
Brand Share of Market:
– Measuring a brand’s percent of sales in a market
– Can be measured nationally, regionally and at retailers
– Data captured via
Scanner data (IRI, Nielsen)
Industry trends A
nnual reports
Branding
Measuring Brand Share of Market
Unit $$ Unit $$
Sales Sales Share Share
National 120 $270 100% 100%
Brand A 5 15 4.2% 5.6%
Brand B 15 15 12.5% 5.6%
Brand C 3 7 2.5% 2.6%
Branding
Measuring Brand Share of Market
Brand Sales
Category Sales
= Brand Share
Branding
Are ALL Brands Created Equally?
How Does Brand Usage Compare to Category or Competitive Usage?
Are Brands Equally Strong in Different Regions?
Measuring Brand Development
Using Brand Share Metrics
Brand Management
As much ART as SCIENCE
As much SCIENCE as ART
Achieved by combo of
– Specialist talent
– Long term vision
– Analytic wizardry
What is Brand Management?
Entrepreneurs are building brands (Ben &
Jerry’s, Yahoo…)
Creating a whole new brand
– Riskiest
– Most lucrative
Six to Seven of Ten brands launched fail
What is Brand Management?
Majority of Brand Builders main task
– take existing brand legacy
– adapt brands to suit the requirements of more
sophisticated consumers.
What is Brand Management?
Components of Main Brand Builders task
– Embrace the increasing possibilities for communicating
brand values
– Acknowledge growing financial pressures on brands to
make a return.
– Issue: Agencies are communicators..some given
responsibility to modify core brand values…brand
owners may run into difficulties with this later..
What is Brand Management?
Marketing as Brand Management’s
responsibility is to build long-term
profitable growth for the company’s brands.
What is Brand Management?
To accomplish this, marketing must:
– Deliver sustained value to consumers
– Enhance brand equity by keeping their brands
relevant, fresh and contemporary
– Build consumer loyalty towards their brand
What is a Brand Management?
Brand Building Begins By
– Understanding & anticipating the needs and
desires of the consumer
– Understanding the key attributes of the
product(s)
Our Mission is to DISCOVER (rather than
Invent) the brand’s CORE VALUES and
abide by them.
What is Brand Management?
Brand = Primitive God
– If we keep it’s laws
– And pay regularly the tributes due
(mainly advertising), fortune will smile
on us – otherwise, disaster.
What is Brand Management?
“You have to maintain and replenish a
brand over time or it will die”
Brand Vision and Essence
BRAND = Mindset
EQUITY = Roots
ESSENCE = Brand’s Soul
VISION = Brand’s DNA
What is Brand Management?
Functional Excellence in
Support of the Brand
Primary Source of Differentiation
• Product/service innovation and
communication
Purpose of the Brand
• Create or reinforce product
distinctiveness
Firmwide Leadership in
Stewarding the Brand
Primary Source of Differentiation
• Customer experience, in addition to
innovation and communication
Purpose of the Brand
• Provide clear set of values along
which to align all enterprise activities
and investments
Corporate Executive Board
What is Brand Management? Functional Excellence in
Support of the Brand
Marketers Responsibilities
• Deduce customer interests from
market research data
• Develop and refine brand strategy
• Control advertising and promotion
planning and execution
•Develop new line extensions
Firmwide Leadership in
Stewarding the Brand
Marketers Responsibilities
• Generate customer insight from all
points of customer contact
•Develop & Refine brand values, and
translate into expectations for each
function and role
•Influence customer experience
across all touch-points, from
communication through transaction
and service
•Leverage brand into new, relevant
industries, marketplaces or customer
segments
Corporate Executive Board
What is Brand Management? Functional Excellence in
Support of the Brand
Marketers Responsibilities
• Defend marketing budget
•Base decisions primarily on
marketing judgement
•Determine success through
intermediate measures (awareness,
recall, brand equity)
Brand Architecture
• Multiple, unrelated brands
Firmwide Leadership in
Stewarding the Brand
Marketers Responsibilities
• Champion shareholder value
• Base decisions on marketing
judgement supported by
comprehensive customer database
and/or modeling of all key inputs and
outputs
•Determine success using a dashboard
of selected intermediate and bottom-
line measures
Brand Architecture
• Single brand or few, interrelated
brands
What is Brand Management?
Functional Excellence in
Support of the Brand
Locus of Brand Ownership
• Brand Managers
Firmwide Leadership in
Stewarding the Brand
Locus of Brand Ownership
• Chief Marketing Officer
Corporate Executive Board
What is Brand Management?
Brand Management is reliant on entire
corporation and agency teams
In Operationalizing the brand, the
highest priority is to enlist the support
of each member of the team
What is Brand Management?
Innovative Analysts
Archeologists
Sociologists
Politicians
General Managers
Templar Knights of Equity
Evangelists
Brand Stewards
Brand Champions
Parallel Path Strategic Growth Model
(Soni’s Standard Operating Procedure)
Strategic Brand Management
Guiding Focused Strategic Growth Parallel Path Process
PATH 2: We’ve got a
Business to Run
PATH 1: Strategic Plan for Long Term
Explosive Growth
$ $
Building
Brands
NOT
Growing
Products
Interview ALL
key internal
players, all
vendors, &
buyers/brokers
Review &
analyze
business and
consumer
trends Read all research
on-hand & obtained
Path 1: Strat Plan for High Growth
Guiding Focused Strategic Growth Parallel Path Process
#1 Full Business Immersion #1
Path 1: Strat Plan for High Growth
Guiding Focused Strategic Growth Parallel Path Process
Brand Essence/Consumer Insight #2
Vision >>Objectives >>Strategies #3
Full Business Immersion #1
SET STRATEGIC PLAN #5
Full Team Brainstormings #4
Short Term: Running The Business
ASK & Listen
Focus on
Immediate
Business
Issues Ensure All
Priorities &
Deadlines are met
Guiding Focused Strategic Growth Parallel Path Process
Work Current Plan #1
Work Current Plan #1
Path 2: ST Running The Business
Guiding Focused Strategic Growth Parallel Path Process
Facts vs Folklore #2
Full Team Brainstormings #4
Strat & Tactic Successes/Failures #3
ADJUST SHORT TERM PLAN #5
Work Current Plan Full Business Immersion
Facts vs Folklore Brand Essence/Consumer Insight
#1
#2
Strat & Tactic Successes/Failures Vision >>Objectives >>Strategies
ADJUST SHORT TERM PLAN
#3
Full Team Brainstorm
SET STRATEGIC PLAN
#4
#5
Path 1: Strat Plan for High Growth Path 2: ST Running The Business
Guiding Focused Strategic Growth Parallel Path Process
$ $
Work Current Plan Full Business Immersion
Facts vs Folklore Brand Essence/Consumer Insight
#1
#2
Strat & Tactic Successes/Failures Vision >>Objectives >>Strategies
ADJUST SHORT TERM PLAN
#3
Full Team Brainstorm
SET STRATEGIC PLAN
#4
#5
Path 1: Strat Plan for High Growth Path 2: ST Running The Business
Guiding Focused Strategic Growth Parallel Path Process
$ $
Building
Brands
NOT
Growing
Products
Strategic Brand Management
In Class Exercises:
Self Positioning
Case Study
Product and Brand Hierarchy
Exercise
Strategic Brand Management
SELF POSITIONING
Develop your own personal positioning statement
to share with your group this week.
Have your group provide you feedback this week.
Define your target audience in the process: what
they need to know and why? What makes you
unique and why?
Have in writing to turn in and share next week.
What is a Product? Kotler’s
Five
Levels to
a Product:
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
The Fundamental Need or Want
that consumers satisfy by
consuming the product or service
Generic Product Basic Version of the product
containing only those elements
absolutely necessary to function.
No distinguishing features.
Expected Product Attributes and Characteristics that
buyers normally expect and agree
to when they purchase a product
Augmented Product Additional product attributes,
benefits, or related services that
distinguish the product from
competitors
Potential Product
Additional Product attributes,
benefits, or related services that
distinguish the product from
competitors
PRODUCT LEVEL
LEVEL Television or Juice Drink
BRAND
Name/Positioning
Potential Product
Augmented Product
Expected Product
Generic Product
Core Benefit
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 HIERARCHY
LEVEL Television or Juice Drink
BRAND
Name/Positioning
Central
Beliefs and Core Values
Expressive
Benefits
Functional
Features and Attributes
Strategic Brand Management
Did your output change with the
Brand Hierarchy vs the Product Level
approach?
What about the Consumer?
How did you create this brand without
the Consumer Insights?
What about your BHV?