Case Resolution 1.3.3_Final

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UDLAPCase 3: SolutionTeam: Jessica Morales RojasDiana Rbke MartnezJos Flores Snchez

Building Brands Without Mass MediaAntecedentsMass media has long been the cornerstone of most brand-building efforts. But that norm is threatening to become obsolete. Perhaps the new media scene will take more time to develop than the two or three years that the pundits have predicted. Perhaps it will not affect everyone.Powerful retailers in many nations usurp much of the available media capacity to engage in corporate advertising and to strengthen their private-label efforts. In short, managers of brands in Europe have found that communication through traditional mass media has been ineffective, inefficient, and costly. As a result, many European based companies have long relied on alternative communication channels to create product awareness. The present case focuses on six companies: Body Shop, Hugo Boss, Cadbury Chocolate, Buitoni Brand, Hagen-Dasz and Swatch.The successful European companies weve seen share one critical characteristic in addition to their reliance on alternative media: senior managers drive the brand building. They actively make brand building part of their strategic plans and, as a result, integrate their alternative approaches to brand building into their overall concept of the brand.In contrast, many US companies delegate the development of brand strategy to someone who lacks the clout and incentives to think strategically. Or they pass the task to an advertising agency. Companies can face two problems: First in the most cases, it creates a distance between senior managers and their key asset, the brand the driver of future growth opportunities. As a result, consumers get confused; there is a loss of synergy and ultimately, performance that falls short of potential. Second, most agencies talents, incentives, and inclinations still lead them rely on mass-media advertising ad their primary brand-building with alternative media.A clear and affective brand identity should be linked to the businesss vision and its organizational culture and values to help reinforce the brand.Each of the six companies we examine subscribes to the idea of a strong, clear brand identity. For example, in case of Body Shop; its core brand identity is in essence its profits with a principle philosophy. Enter a Body Shop, and you are greeted by a clerk who not only wears a Body Shop T-shirt bearing a social message but also believes in the companys causes, values, and products. Clearly, Body Shop has transformed the skin care and cosmetics experience into something more than it has ever been.Hagen-Dasz was launched in Europe in 1989, despite an economic recession and established competitors; Hagen-Dasz means premium ice cream and this was the main success of the brand; because it is thicker, creamier, and pricier than any other ice cream on the market.Hagen-Dasz brand awareness in the United Kingdom, for example, reached more than 50% within a few months. European sales of the product went from $10 million dollars in 1990 to $130 million in 1994.A Spanish company called Lacrem launched Farggi as a premium ice cream but it had an issue with the name because a cheap brand had the same name, ultimately its muddled identity confused consumers and put them out.Brand visibility can signal leadership, success, quality, substance, and even excitement and energy. Hugo Boss sponsored Porsche Formula one races to capitalize on Porsches strong exclusive image. When the Hugo Bosss brother became co-CEO, annual revenues were only about 4 million deutsche marks. Sales revenues topped DM 100 million in 1980; its garments are sold in 57 countries, and more than half its sales come from outside Germany.SMHs efforts to build Swatch brand are nothing short of brilliants. SMH took Swatch from rooftops to concert halls to ski slopes in a target campaign to boost visibility and forge a clear brand image, redefining a product category and reinvigorating the entire Swiss watch industry. SMH set out to define the Swatch core identity as a low-cost watch of excellent Swiss quality with a stylish, fun, youthful, provocative, and joyful brand personality. Swatch sponsored Andre Logans Alternative Miss World show and in Paris, a street painting contest and a pop art exhibition Lheure est lart in Brussels.Without exception, the visibility enhancing efforts of the companies we studied have been and continue to be consistent and supportive of their brand identities.United Colors of Benetton campaign, made use of print media a Formula One sponsorship, and intensive in-store communication. Oliver Toscani produced images for Benettons communications campaign that included a dying AIDS patient, a nun kissing a handsome priest, and a babys bottom stamped HIV Positive Toscanis work appeared inconsistent with Benettons established brand identity, and instead of building the brand and increasing sales, it alienated the target market and Benetton retailers. The result was flat sales and a damaged brand. Germanys highest court eventually ruled against the controversial ads.Cadburys park in England took what was once a single chocolate to turn it into a thematic park through the story of chocolate and the history of Cadbury, it has gained additional brand building through press coverage and word of mouth, heritage-linked experienced can be a cornerstone of brand building.Nestle owned Buitoni, a 169 year old Italian pasta company. It faced two challenges; private levels and a small variety of pasta recipes of the clients. Nestls strategy was that Buitoni would become a helpful authority on Italian food a brand and company to which consumers could turn for advice on the many varieties of pasta and their preparations. Buitoni gave free recipe booklets to anyone who responded to its offers, which were made in the press and through teletext or direct response television. Other brand support in the initial stage included in-store sampling, sponsorship, a road show with many sampling activities, and public relations connected to the most popular running event in the United Kingdom.

IssuesSix successful European companies are study: the Body Shop, Hugo Boss, Cadbury-Schweppes with its Cadbury chocolate line, Nestl with its Buitoni brand, Grand Met with its Haagen-Dazs brand, and SMH with Swatch.A relevant issue between the companys study is that senior managers drive the brand building, it is part of strategic plans and as a result they incorporate alternative approaches to building overall concept of the brand.Body Shops. Anita Roddicmade her alternative brand-building methods the basis of her companys strategy.The Body Shops core brand identity is: profits-with-a-principle philosophy. Therefore, opposition to animal testing is part of the companys core brand identity.HaagenDazs was launched at a price 30% to 40% higher than its closest competitors and many times higher than the lower-priced products.The HaagenDazs brand means premium ice cream.In four years HaggenDazssales growth were $ 120 million ($ 10 million to $ 130 million)Hugo Boss created its image of exclusivity and high quality in large part through effective use of sponsorship.The visibility generated by Hugo Boss sponsorship paid off quickly. Sales revenues topped DM 100 million in 1980 and increased tenfold during the 1980s.Swatch redefined a product category and reinvigorated the entire Swiss watch industry. The concept of a fashion watch was born.Swatch drive strong branded identity trough the implementation of giant watches in skyscrapers. The company was supported by strategic sponsorship and linked watches to selected events around the world. Also, Swatch achieved important brand awareness because of the customer membership club.Cadbury World vividly links the taste experience to the brands history.Cadbury factory attracted visitors interested in seeing not only how chocolate was made but also how to establish progressive labor relations. The next stage to consolidate the brand, were to invest in a theme park. Besides it is help to gain additional brand building through press coverage and word of mouth.Nestl had successfully employed strategic business units to manage its worldwide corporate brands.Buitoni was designed to strengthen brand awareness and create a core database of consumers interested in getting involved in Italian cooking. Buitoni gave free recipe booklets, sampling, sponsorship, and public relations. Company also implemented the Casa Buitoni Club to distribute newsletter and reinforce brand awareness.Adidas has developed the urban culture programs. Its activities in different fields like: street ball and other fashion and music shows, targeting to young people. Moreover Adidas constructed the brand through sport leagues sponsorship, sport celebrities contract, and media services based in PPRR.Virgins participated in a virtual mall and helps to reinforce the Virgins brands associations of being innovative, pioneering, and energetic to provide value to customers.Alternative Solutions and RecommendationsNowadays the mass media is no longer the only option to promote a product and the brands must seek strategies with greater impact; the mass media is becoming obsolete. Brands opt for television because reaches a large amount of the market, but there are other alternatives witch dont require such a large budget, sometimes there are even cheaper options than television and also have greater impact to the consumer.Its very important to create strong and long lasting brand strategies, so the solution is to create a brand identity, giving it a brand personality and focusing on lifestyles, therefore it is important to identify market niches and reduce the segmentation,to more specific groups.Many brands often use mass media communication to try to reach all segments but today, the diversified marketing use different strategies to do it better, that why today is better to have a fully customized and direct communication. Recommendations for building brands without using mass media communication begin by checking the brand background, the industry, the products offered, and also to identify the moments of truth.Is important to create a brand experience exploiting all the senses using what affects to the consumers, like the drivers and barriers; the right communication, witch have to be directed to the target market could be done on the Internet, social networks, or any creative media outside the traditional channels.

Create a clear identity and effective brand, must be held by the whole company and linked to their values and organizational culture, this way you can engage customers to generate a link to the brand and build the identity together, Providing comprehensive information, especially using mass media advertising, is not enough to overcome the impact caused by the personal experience of customers with a brand, focusing on the original identity of the brand, will attract more customers.For a successful campaign, the brands can create experiences more than just selling their products by traditional channels, the companies also can use other strategies like create promotions at the point of purchase, use social media as a mass media because it is cheap and also you can reach a lot of your clients, and also you can improve the quality of the product or service to be good for customers. To have a solid strategy the companies most lookout for trends and try with new designs and different marketing ideas, also they can design some applications of the brand,to be use by the consumers with their smart phones creating brand loyalty.Trough CRM is possible to get close to your clients or potential consumers, with databases and with the help of the technology the companies are able to create an design strategies oriented to a specific segment, nowadays this is possible and easy with the social networks, so this kind of tools are very helpful and effective for modern advertisement.Bibliography:Clow, K. E., & Baack, D. (2012). Integrated Advertising, Promotion, and Marketing Communications. Pearson.Joachimsthaler, Erich & Aker, David A. January - February (1997) Harvard Business Review. Building Brands Without Mass Media

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