strategic-brand-management

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


TACTICAL Application

•Brand Share

•Brand Management

•Brand Management Task Models

•IN CLASS CASE STUDIES

•Self Positioning

•Du Pont Case Study

•Due Next Week


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 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 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


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




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


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


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


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.


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


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


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


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.


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


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


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


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


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.


Case Groups Definition:

Product

Service

Corporation

Brand


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


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



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)


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)


POWER BRANDS

Interbrand

The breadth of franchise that

the brand has achieved both in

terms of age spread, consumer

types and international appeal


POWER BRANDS

Interbrand


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.


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


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


Benefits of Corporate Branding:

– New product launches/extensions cheaper and

quicker

– Long Term strategic focus

– Financial performance and value creation can be

enhanced


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


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


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.


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


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.


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


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


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




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


Central

Expressive

Functional

Very meaningful in



consistently to our

consumers



imitate

Beliefs &

Core

Values

Benefits

Features &

Attributes



Hierarchy : Timothy D. Ennis, Ennis Associates, Inc

Brand Value:


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



consistently to our

consumers



imitate

Mc Cormick: The Taste You Trust

Brand Value:


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



consistently to our

consumers



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


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.


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.


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.”


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!”


Brand Vision

A motorcycle company

“We will crush, squash, slaughter Yamaha!”


Grade = 85

Brand Vision

A technology company

“To eclipse IBM as the #1 technology

company in the world.”


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.”


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


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


Generic Product

CORE BENEFIT

Expected Product

Augmented Product


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


OWN Something


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)


POWER BRANDS

Interbrand

POWER COMPANIES


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



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



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:

•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


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.”


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


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


Majority of Brand Builders main task

– take existing brand legacy

– adapt brands to suit the requirements of more

sophisticated consumers.


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..


Marketing as Brand Management’s

responsibility is to build long-term

profitable growth for the company’s brands.


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.


Brand = Primitive God

– If we keep it’s laws

– And pay regularly the tributes due

(mainly advertising), fortune will smile

on us – otherwise, disaster.


“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


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


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




• 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


What is Brand Management? Functional Excellence in



• Defend marketing budget

•Base decisions primarily on

marketing judgement

•Determine success through

intermediate measures (awareness,

recall, brand equity)

Brand Architecture

• Multiple, unrelated brands




• 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


Functional Excellence in


Locus of Brand Ownership

• Brand Managers



Locus of Brand Ownership

• Chief Marketing Officer



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


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)


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


#1 Full Business Immersion #1

Path 1: Strat Plan for High Growth


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


Work Current Plan #1

Work Current Plan #1

Path 2: ST Running The Business


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


$ $

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


$ $

Building

Brands

NOT

Growing

Products


In Class Exercises:

Self Positioning

Case Study

Product and Brand Hierarchy

Exercise


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.


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,



competitors

Potential Product

Additional Product attributes,



competitors

PRODUCT LEVEL

LEVEL Television or Juice Drink

BRAND

Name/Positioning

Potential Product

Augmented Product

Expected Product

Generic Product

Core Benefit

Brand Value:


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



consistently to our

consumers



imitate

BRAND HIERARCHY

LEVEL Television or Juice Drink

BRAND

Name/Positioning

Central

Beliefs and Core Values

Expressive

Benefits

Functional

Features and Attributes


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?

strategic-brand-management

Business

Transcript of strategic-brand-management