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Strategic Brand ManagementStrategic Brand Management

Exeter MBA and MSc Exeter MBA and MSc Day 2Day 2

Lecture 2Lecture 2

Auditing and Building Brand EquityAuditing and Building Brand Equity

Jack Buckner

Brand EquityBrand Equity

Financial

Goodwill

P/E ratios

Managerial

Audit

Evaluate

Strategy

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Jack Buckner

ElliottElliotts Synthetic Model of Brand Equitys Synthetic Model of Brand Equity

Brand

Equity

BRAND IMAGE

Salience

Easy ChoiceDifferentiation

Relevance

Emotional Connection

Brand Personality

Trust

Functional

BrandSymbolic Brand Price Premium

Perceived

Quality

Brand Awareness

Brand Loyalty

Brand Elasticity

Source: Elliott & Percy (2004)

Jack Buckner

Brand Awareness, Image, Personality, Brand Awareness, Image, Personality,

Knowledge, Identity,SalienceKnowledge, Identity,Salience....

Brand Awareness Brand Awareness

RecogniseRecognise

RecallRecall

Brand Image Brand Image a wider construct including a wider construct including

personality and salience (salience is % with personality and salience (salience is % with

an opinion)an opinion)

Brand Knowledge Brand Knowledge the sum Kellerthe sum Keller

Brand Identity Brand Identity desirable state desirable state AakerAaker

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Jack Buckner

AakerAakers s Brand Identity SystemBrand Identity System

BRAND IMAGE

How the brand is now

perceived

BRAND IDENTITY

How strategists want the

brand to be perceived

BRAND POSITION

The part of the brand identity and

value proposition to be actively

communicated to a target audience

Jack Buckner

3 steps to great brand

management..

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Jack Buckner

Understand Image

Develop Identity

Market Position

Jack Buckner

British Airways in the British Airways in the 80s80s

Image big but British.

Develop identity truly global,

undisputed leader in world travel

Market position the worlds

favourite airline

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Jack Buckner

Brand Equity examplesBrand Equity examples

The Saturn Story The Saturn Story Aaker Aaker A different kind A different kind

of company, a different kind of car.of company, a different kind of car.

For God, Country and CocaFor God, Country and Coca--ColaCola Mark Mark

PendergrastPendergrast, Collier Books, Collier Books

Intel Corporation Intel Corporation Keller, appendicesKeller, appendices

Jack Buckner

Volkswagen BeetleVolkswagen Beetle

Understand Image the

power of nostalgia

Develop identity update a

classic, similar strategy

Market Position Less

flower, more power,

Drivers wanted.

Could VW have failed?

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Jack Buckner

Understanding ImageUnderstanding Image

SalienceSalience

Easy ChoiceEasy Choice

DifferentiationDifferentiation

RelevanceRelevance

Emotional ConnectionEmotional Connection

Brand PersonalityBrand Personality

TrustTrust

Jack Buckner

SalienceSalience

AwarenessAwareness

Active Brand Repertoire/consideration setActive Brand Repertoire/consideration set

Positive attribute benefitsPositive attribute benefits

Source: Ehrenberg et al(1997) Differentiation or Salience JAR

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Jack Buckner

Measurement FundamentalsMeasurement Fundamentals

Relevant CompetitorsRelevant Competitors

Market BehaviourMarket Behaviour

Market ShareMarket Share

DistributionDistribution

Relative Market PriceRelative Market Price

Assessment by SegmentsAssessment by Segments

Users v NonUsers v Non--usersusers

Heavy v LightHeavy v Light

Loyal v VulnerableLoyal v Vulnerable

AgeAge

Jack Buckner

Brand PersonalityBrand Personality

Projective techniquesProjective techniques

Human characteristics, collages, Human characteristics, collages,

psychodrawingpsychodrawing

Respondent ledRespondent led

Sensitive to subtle differencesSensitive to subtle differences

Combines with User ImageCombines with User Image

Combines with occasion ImageCombines with occasion Image

Source: Gordon in Cowley D(1999) Understanding Brands

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Jack Buckner

Newspaper Brand Personality StudyNewspaper Brand Personality Study

THE TIMES

Likes to win

Follows rules

A leader

THE GUARDIAN

A good listener

Thoughtful

Peaceful

INDEPENDENT

Friendly

Happy

Likes a Challenge

and change

Honest

Jack Buckner

Consumers ExperienceConsumers Experience

181827272525BoredBored

111121211818DefensiveDefensive

252536362727SafeSafe

9934343939IrritatedIrritated

646441414848IntelligentIntelligent

2121181855ProudProud

2121414199OvershadowedOvershadowed

IndependentIndependentTimesTimesGuardianGuardian

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Jack Buckner

DifferentiationDifferentiation

Attributes that are relevant, meaningful and Attributes that are relevant, meaningful and

valuable to the consumervaluable to the consumer

MeaninglessMeaningless differentiationdifferentiation

Simplification of choiceSimplification of choice

Gets attention in a crowded marketGets attention in a crowded market

Alberto Natural Silk Alberto Natural Silk we put silk in a bottlewe put silk in a bottle

Jack Buckner

Differentiation as a StrategyDifferentiation as a Strategy

Differentiate or DieDifferentiate or Die Jack TroutJack Trout

Return to the USPReturn to the USP

Owning attributesOwning attributes

Marketing specialityMarketing speciality

Product / brand innovationProduct / brand innovation

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Jack Buckner

DifferentiatorsDifferentiators

Dell computers Dell computers marketing/sales strategymarketing/sales strategy

Apple Apple product innovationproduct innovation

IKEA IKEA retail and valueretail and value

Volkswagen Volkswagen marketing and designmarketing and design

Using differentiation from image to identity and then position

Jack Buckner

The adidas Trefoil StudyThe adidas Trefoil Study

Understanding a brandUnderstanding a brands image to develop a s image to develop a

new identitynew identity

Associations with sports logosAssociations with sports logos

Across Germany and the UKAcross Germany and the UK

Sports and nonSports and non--sports participantssports participants

Different ages rangesDifferent ages ranges

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Jack Buckner

BackgroundBackground

The Trefoil

Not marketed

since early

1990s

Performance

Logo

Brand on sport

since 1990s

Salomon

Freedom Action

sport

Jack Buckner

Fashion Function

Price

Fashion / function c.1995

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Jack Buckner

Fashion Function

Price

Fashion / function c.1998

Jack Buckner

Compare logos and associationsCompare logos and associations

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Jack Buckner

Key FindingsKey Findings

The Equity in the Trefoil was almost as The Equity in the Trefoil was almost as great as the Swooshgreat as the Swoosh

Despite limited marketing for the previous Despite limited marketing for the previous 10 years10 years

Performance logo on all sports teams Performance logo on all sports teams athletes in 1990athletes in 1990ss

Performance logo in all communication Performance logo in all communication (approximately (approximately 40 million pa in UK alone)40 million pa in UK alone)

Even amongst 15Even amongst 15--17 year olds17 year olds

Jack Buckner

Trefoil identityTrefoil identity

The power of authentic heritageThe power of authentic heritage

The power of logosThe power of logos

And And underground marketingunderground marketing

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Jack Buckner

The new identity The new identity

Launch a sports fashion brand with the Launch a sports fashion brand with the

Trefoil Trefoil

Allow the Performance logo to represent Allow the Performance logo to represent

sportsport

Two separate divisionsTwo separate divisions

Two separate brandsTwo separate brands

Jack Buckner

Fashion Function

Price

Fashion / function c.2002

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Jack Buckner

Link between Brand Identity and Link between Brand Identity and

Mission/visionMission/vision

Strong and clear identities often impact Strong and clear identities often impact

upon (or are derived from) company upon (or are derived from) company

mission/visionmission/vision

Distinction between brand management and Distinction between brand management and

strategic planningstrategic planning

Strong brands tend to have strong links Strong brands tend to have strong links

between brand image / identity / position between brand image / identity / position

(internal and external)(internal and external)

Jack Buckner

Company VisionCompany Vision

Core Ideology

Core values

Core purpose

Envisioned Future

Bold Goals

Vivid description

Source: Collins & Porras Building your companys vision HBR 96

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Jack Buckner

Sony in the 1950sSony in the 1950s

Core Ideology

Core Values

Elevation of the Japanese Culture and

national status

Being a pioneer not following others, doing

the impossible

Encouraging individual ability and creativity

Purpose

To experience the sheer joy of innovation

and the application of technology for the

benefit and pleasure of the general public

Envisioned Future

Bold Goals

Become the company most known for

changing the worldwide poor-quality

of Japanese products

Vivid Description

We will create products that become pervasive

around the world.. We will be the first Japanese

company to go into the US market and distribute

directlyfifty years from now our brand names

will be as well known as any in the

world..signifying innovation and quality as good

as any..

Source: Collins & Porras Building your companys vision HBR 96

Jack Buckner

Brand ElasticityBrand Elasticity

Conflicting adviceConflicting advice

Narrow BrandsNarrow Brands

Ries Ries & Trout& Trout

Broad BrandsBroad Brands

AakerAaker

On the fenceOn the fence

KellerKeller

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Jack Buckner

ElasticityElasticity

Moving down market is always easier than Moving down market is always easier than

moving up marketmoving up market

Moving down market is a temptation (some Moving down market is a temptation (some

would say a necessity) todaywould say a necessity) today

ItIts hard for mass brands to niches hard for mass brands to niche

Diversification is easier the stronger the Diversification is easier the stronger the

core brandcore brand

Jack Buckner

Elasticity Elasticity

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Jack Buckner

But in real life itBut in real life its messiers messier

The chances are a brandThe chances are a brands equity will be perceived s equity will be perceived

differently by different parts of the organizationdifferently by different parts of the organization

Image, identity and position is Image, identity and position is ownedowned

throughout the organizationthroughout the organization

Sales Sales lower priceslower prices

Head office Head office brand puritybrand purity

National markets National markets reflect local identityreflect local identity

Retailers Retailers force competition with other brandsforce competition with other brands

Jack Buckner

Brand

Product / Service

Consumers

Brand Equity The Practitioners Perspective

Customers

Sales Forces

Retailers

Head office

FINANCE

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Jack Buckner

Cleaning up equityCleaning up equity....

Align finance with brand managementAlign finance with brand management

Agree measures and set targetsAgree measures and set targets

Contribution and brand image objectivesContribution and brand image objectives

Risks Risks marketing budgets discretionary and marketing budgets discretionary and

the easiest to cutthe easiest to cut

Disconnections especially between HQ and Disconnections especially between HQ and

country organizationscountry organizations