BA 324 Brand Strategy in brief

(This presentation only includes the headlines. For your exam and project you

are responsible for everything that we have discussed in class, not only these)

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Brand Strategy Process

Target & Insight

Brand Execution

Brand Elements

Competitive Assessment

Brand Inventory

Equity Pyramid

Positioning

Objectives & Metrics

Personality

Communications Strategy

Brand Experience Map

Brand Strategy

Brand Audit

CRM & Community

Building

Points of Parity and Difference

The process of creating a brand strategy begins with a brand audit and ends with a plan for executing the brand across all touch points.

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1) Brand Audit (Understanding the environment)

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Target & Insight Competitive Assessment

Brand Inventory

Brand Audit

Points of Parity and Difference

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1a) Target Matrix (Segmentation)

Segment A Segment B Segment C Segment D

Size/Profile

Decision Criteria or

Motivators

Usage Behavior

Decision Process

Barriers/Concerns

Key Influences

Brand Importance

Role of price

Satisfaction

The target matrix helps ensure the brand focuses on the customers and prospects that offer the greatest potential for increased revenue and profitability.

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Example Target Matrix: Wine Drinkers

Enthusiasts Variety

Seekers

Infrequent

Regulars Tourists One-timers

Size/Profile 12% 20% 16% 14% 23%

Decision

Criteria or

Motivators

Quality,

optimize the

drinking

experience

High price and

sophisticated

image

Well-known

winery label

Sensible choice,

feel comfortable

Personal

attention &

reassurance

Barriers/

Concerns

Avoid mistakes

that can spoil

the experience

Not sure what I

want Avoid risk

Avoid feeling

foolish Confused by wine

Key Influences Wine authorities Popularity Brand name Promotional

offers Store Personnel

Alternatives Low High High Medium High

Target

importance to

Kavaklıdere

High Medium Medium Medium Low

Targeting

1a) Target Insight

• Describes how a meaningful connection can be established between what the brand offers and the target’s explicit or implicit needs

• Understanding what the consumer wants in reality

• And which business you are in

– Revlon: Hope

– Johnny Walker: Fashion Accessories

– Nike: Find your greatness

Target Insights: Where to find

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Trends

Motivations/”Sweet spots”

Decision-making process/criteria

Higher level benefits

Image/Identity gaps

New Segments

Unmet needs

Ethnographic research & ‘shop alongs’

Online communities

Social media listening & ‘netnographies’

Crowdsourcing and co-creation

Consumer panels

Neuro-marketing

Customer service

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Target Insight: Dove

"90% of women are not happy with the way they look," and they are frustrated with the way beauty is

portrayed in our society.

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1b) Competitive Assessment: Points of Parity and Difference

Brand

Strengths

Consumer

Needs

Competitor Strengths

Our

PODs

Potential Brand Differences

POPs

• Points of Parity (Category Benefits)

Vulnerabilities Their

PODs

Wants and Needs

a POD’s analysis is to identify what ideas from our brand and competitive brands are most meaningful and potentially differentiating. The purpose of a POP’s analysis is to identify which category benefits are critical for establishing credibility.

Points of Parity and Difference: Coffee

Brand Strengths

Consumer Needs

Competitor Strengths

Coffee House Potential Points of Difference

• Knowledgeable assistance in coffee

• A wide variety of coffees

• Not being disturbed for prolonged stays

Coffee Points of Parity • Good time • Good taste

Vulnerabilities • Wide and deep selection enables choices (i.e. Chocolate, ice cream)

Customer Needs

• Quality coffee • A variety of products • Having a good time

1c) Brand Inventory: What I already have

A brand inventory identifies existing or potential assets that can be leveraged or gaps that need to be addressed to build or create sustainable points of differentiation.

Heritage/Historical Positionings (existing products)

Brand Identity logos, icons or symbols

Secondary associations

Gaps between identity and image

Organizational strengths

Brand Values/Vision

Product performance claims, proprietary technology/patents

Third-party ratings or endorsements

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Where to Find

Assets or Gaps

2. Brand Strategy

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Equity Pyramid

Positioning

Objectives & Metrics

Personality

Brand Strategy

2a) Brand Equity Pyramid The brand equity pyramid outlines the basic building blocks of what the brand should stand for – brand vision, brand positioning, and brand personality and brand measurement.

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Example Brand Pyramid: Kavaklıdere Egeo

Resonance The wine I’m proud

to share.

Consumer

Judgments Quality wine

Authentic, genuine

Consumer

Feelings Confident,

Discerning, savvy

Brand Imagery Accessible, not snooty wine for

discerning wine lovers.

Brand Performance

Soul not overridden by process.

Salience Kavaklıdere is a high quality wine everyone can enjoy.

Identity

Relationship

Response

Meaning

1b) Brand Positioning

• According to Trout and Reis, “positioning is not what you do to a product. Positioning is what you do to the mind of the prospect. That is, you position (place) the product in the mind of the potential buyer”.

• Since that time in marketing, positioning is the technique in which marketers try to create an image or identity for a product, brand, or company in the perception of the target market.

• What matters is how potential buyers see the product. It is expressed relative to the position of competitors.

• Typical positioning tools include graphical perception mapping, market surveys, and certain statistical techniques.

Brand Positioning

• Identify competing products.

• Identify the attributes (also called dimensions) that define the product 'space'.

• Collect information from a sample of customers about their perceptions of each product on the relevant attributes.

• Determine the share of mind of each product

• Determine the current location of each product in the product space

• Determine the target market’s preferred combination of attributes. These are called: an ideal vector.

• Examine the fit between: the positions of competing products, the position of your product and the position of the ideal vector

• Select the optimum position

Perceptual Map of Beer Market (This slide shows only the products)

•

Meister Brau

Stroh’s

•

•

•

Beck’s

• Heineken

Old Milwaukee

•

Miller •

Coors •

Michelob •

Miller

Lite

• Coors

Light •

Old

Milwaukee Light

•

Budweiser

Perceptual Map of Beer Market (This slide includes both products and attributes)

Popular

with Men Heavy

Special

Occasions

Dining Out Premium

Popular

with

Women

Light

Pale Color

On a

Budget

Good Value Blue Collar

Full Bodied

Premium Budget

Light

Heavy

•

Meister Brau

Stroh’s

•

•

•

Beck’s

• Heineken

Old Milwaukee

•

Miller •

Coors •

Michelob •

Miller

Lite

• Coors

Light •

Old

Milwaukee Light

•

Budweiser

Less Filling

Interesting web site to visit: www.ratebeer.com

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Brand Positioning Statement: Formula

A brand positioning statement describes how the brand will communicate with a specific target group to create a sustainable competitive advantage.

For (Target), (Brand/Company) is the only/best (consumer frame of reference)

that (statement of key benefit or guiding value), because/by (reason to believe, key credibility point).

Evaluation Criteria: Brand Fit, Customer Relevance, Uniqueness, Sustainability, Credibility

Positioning Example: DeWalt

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To the tradesman who uses his power tools to make a living and cannot afford downtime on the job, DeWalt professional power tools are more dependable than other brands of

professional power tools

because

1)they are engineered to the brand’s historic high-quality standards

2)they are backed by Black & Decker’s extensive service network and guarantee to repair or replace any tools within 48 hours.

Positioning Statements

• Pantene – For [females 18-49 who possess dry damaged hair and

believe they cannot achieve truly healthy/shiny hair] Pantene is a [hair care system (shampoo/conditioner/ styling aids)] that offers [“hair so healthy it shines”] because it [“penetrates from root to tip” through its patented Pro-Vitamin B5 formula].

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2c) Brand Personality

Brand personality describes how a brand behaves --- what it does and how it does it – so that the brand always acts consistent with its values. Brand personality enhances target appeal and provide further differentiation.

What Brand IS:

What Brand IS NOT:

The FIVE CORE DIMENSIONS OF PERSONALITY Sincerity (down to earth, honest, real, wholesome, cheerful) Excitement (daring, trendy, spirited, cool, imaginative, up-to-date) Competence (reliable, intelligent, successful, leader, confident) Sophistication (upper class, charming, glamourous, good looking) Ruggedness (outdoorsy, tough, masculine)

What Tex Mex is: Friendly

Fun

Sophisticated & Contemporary

Spirited

Authentic

What Tex Mex is NOT: Fancy

Traditional

Pretentious or stuffy

Take itself too seriously

Brand Personality: Tex Mex

Brand Archetypes

3) Brand Execution

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Brand Execution

Brand Elements

Communications Strategy

Brand Experience Map

CRM & Community

Building

3a) Brand Elements

• Brand Name

• Logo & Symbol

• Characters

• Jingles

• Slogans

• Packaging & Product Design

Brand Building Criteria

• 1. Memorable

– Easily recognized

– Easily recalled

• 2. Meaningful / Understandable

– Descriptive

– Persuasive

• 3. Likable

– Fun and interesting

– Rich visual and verbal imagery

– Aesthetically pleasing

• 4. Transferable

– Within and across product categories

– Across geographic boundaries and cultures

• 5. Adaptable

– Flexible

– Updatable

• 6. Protectable

– Legally

– Competitively