Case Studies on

Brand Management – Vol. I

Edited by

Nusrath Jahan Maldar
Icfai Business School Case Development Centre

Icfai Books
# 71, Nagarjuna Hills, Punjagutta, Hyderabad – 500082

org © 2007 The Institute of Chartered Financial Analysts of India. ibscdc@icfai. www.ibscdc. Punjagutta. or transmitted in any form or by any means – electronic. Sree Hari Rao .org/ ISBN: 81-314-0696-2 Editorial Team: Priyanka Srivastava and Uma Ramaswamy Visualiser: Ch.icfaipress. Hyderabad – 500082 Andhra Pradesh. editors. While every care has been taken to avoid errors and omissions.Icfai Books # 71.40 . Yugandhar Rao Designer: Website: www. Case studies are intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. used in a this book is being sold on the condition and understanding that the information given in the book is merely for reference and must not be taken as having authority of or being binding in any way on the authors.40 . These are used in the book only for the purpose of identification and explanation. publisher or sellers. Nagarjuna Hills. No part of this publication may be reproduced. mechanical. All rights reserved.23435386 e-mail: icfaibooks@icfai.ibscdc. Fax: 91 . Copies of individual case studies are available for purchase from www. INDIA Phone: 91 .23435387/91. photocopying or otherwise – without prior permission in writing from The Institute of Chartered Financial Analysts of India. without intent to infringe. Product or corporate names may be registered trademarks. stored in a retrieval system.

Sam Adams’ Repositioning Strategies Samsung Electronics: Mr. Yun’s Efforts for Upscale Image Taiwan’s OEM Industry: Acer’s Branding Dilemma . Inc.’s Barbie: Brand Merchandising Strategies Puma: Reclaiming its Pride Real Madrid: From a Football Club to a Media Brand Roger Deromedi – Solving the Brand Portfolio Problems at Kraft Foods Inc. Dainik Bhaskar: The Innovative Marketer Dasani’s European Misadventure Destination Dubai: Building a Brand Electrolux in India: Branding Blues Euro Disney: Failed Americanism? GAP and Banana Republic – Changing Brand Strategies with Fashion Global Branding Strategies of LG Electronics Haier: Developing A Global Brand Hyundai’s Global Branding Strategies Internal Branding: The i-flex Way ITC’s Branding Strategies James Bond – A Meta Brand? La-Z-Boy: Changing Style Louis Vuitton: The Making of a Star Brand Page No. 1 13 23 31 43 59 71 85 93 101 121 131 143 159 175 185 193 205 219 227 239 249 257 267 281 295 311 329 341 353 Managing Brand Reputation: The Case of Coke. Pepsi and Cadbury in India Master of Wine: Creating a Unique Brand Mattel Inc.Case Title AmorePacific: Creating Global Brands Brand Extensions – The Marico Way Branding – The Asian Dilemma Branding Service: The McDonald’s Way Burger King – Revitalizing the Brand Cirque du Soleil: The Making of an Entertainment Brand Corporate Co-Branding: Case of Yum! Brands.

The Japanese followed suit. That is. the Western brands were dominant. which. etc. IBM. with Sony leading the way. and branding refers to all the activities that shape customer perceptions. BenQ of Taiwan. invested the profits from its current business into building its own brand and thereby took the risk of directly competing with its current customers (like Dell. Throughout most of the twentieth century. however. The companies in the Eastern world. Harvard Business School Publishing. never objective. and vice versa. Original equipment manufacturer. not a select set of activities Branding is central to creating customer value. the risk of failure has grown exponentially and brand managers have been forced to take a re-look at their notion about brands and branding. until then. benchmarked its top rival and invested heavily to reinvent its brand. not just images Branding is a key tool for creating and maintaining competitive advantage Brand strategies must be ‘engineered’ into the marketing mix. if a company builds a better product. and product value as measured by the company. Branding is often misunderstood as merely being an advertising function and is therefore widely mismanaged. Marketing.1 Traditional business thinkers often assumed that product value as experienced by the customers. However. had served as low-cost manufacturing bases for Western companies. Harvard Business School (Note). As brands have proliferated the marketplace. involving the management of a product image that can be separated from the main business of product management. A brand is therefore the product as it is experienced and valued in everyday social life. The American and European companies were the first to realise the power of strong brands and invested heavily in building them. Brand managers often view branding as a supplementary task. stating that.). the customer will experience an increment in product value. building a brand is a costly and consistent affair.OVERVIEW One of the most important aspects of strategy in modern business is ‘Branding’. new-age thinking provides an alternative perspective. makes a crucial break from this assumption. No. March 11th 2003. were one and the same. • • • • Branding is a strategic point of view. not the least of which is the option of premium pricing. 9-503-045] i . in fact. Samsung of South Korea. “Brands and Branding”. page 1 [ECCH Ref.. China’s Lenovo took the route of purchasing established brands (Compaq) to strengthen its brand portfolio. which was once known for low-cost and low-quality products. emphasising that customer value is always perceptual as it is shaped by the subjective understanding of customers and is. were the next to catch on. For instance. Although there are many advantages to owning a powerful brand. particularly the firm’s 1 Holt Douglas B.

brand managers must realise that although a product consists of a bundle of tangible. The brand can therefore be thought of as the culture of the product. and Symbolic Value (Exhibit I). American product that attracts consumers. To comprehend the value and hence the importance of a brand. Harvard Business School Publishing. The fact is that Coca-Cola conveys the image of being an optimistic. Source: Holt Douglas B.. March 11th 2003.cit. a brand manager has only to evaluate the difference between what a customer is willing to pay for a branded product and a generic product. op. Experiential Value Stories shape experience of the product. Coca-Cola is not just a beverage that customers like. The brand value can be stated to be an assimilation of four dimensions: Reputation Value. THE PRODUCT (objective features. Exhibit I What is a Brand? BRAND = STORES.activities. mostly by the company and customers. Symbolic Value Stories imbue the product with values and identities. Harvard Business School (Note). page 1 [ECCH Ref. IMAGES. For instance. stories and associations are created around the product. No. Relationship Value. functional attributes. Brand culture is formed when images. a brand’s offerings go much beyond that. ii . augments) Relationship Value Stories imply that firm is a long-term partner that will attend to customer interests. quality standards. “Brands and Branding”. ASSOCIATIONS Reputation Value Stories imply perceived quality of product features.2 To be successful. Experiential Value. 9-503-045] 2 “Brands and Branding”.

– that competitors have failed to identify or react to. In this step. Holt outlines this four-step process for developing a brand strategy: Step 1: Identify goals that branding can address Not all business goals require or demand a branding solution. brand strategies are most appropriate. outline the opportunities identified in Step 3 and then. This design must chart out the firm’s existing brand culture. author Douglas B.Building strong and sustainable brands requires developing a well-conceived brand strategy. ‘Brands and Branding’. Therefore. infrastructure. and at the same time. Identifying opportunities in the environment – consumers. technology. Carrying out mapping of competitors’ brand culture will enable a marketer to improve the firm’s brand culture over those of its key competitors. finally detail the desired brand culture (Exhibit II). Step 3: Analyse competition and environment to identify branding opportunities Analysing competition involves mapping the competitors’ brand culture as done in Step 2. Step 2: Map the existing brand culture Mapping the existing brand culture involves evaluating the brand culture across the four components of brand value described in Exhibit I. all aspects of the brand strategy must deliver a consistent message that is in tune with the overall goals of the business. To be successful. identify and work on any possible weak-points that may enable the competitors to make inroads into the future. This step must be carried out because achieving competitive superiority in brand value requires benchmarking against competitors’ brands. is the way to create the most significant brand value. it is important for a marketer to identify the points of divergence between the firm’s current brand strategy and brand culture. Step 4: Design the strategy The final step involves creating a blueprint of the path that a firm should take to make a transition to the desired brand culture. This requires collecting information in tune with the four different components of brand culture. a brand manager must identify those business goals which are amenable to branding. iii . The other. In a Harvard Business School note. In the cases. However. where a business goal can be achieved by enhancing perceived product value. etc. and perhaps the more important aspect to be taken into consideration while branding is the shift in environment. there is no universal rule that governs the designing of brand strategies.

when a brand’s value increases. a customer will purchase the brand more frequently and will be less likely to switch over to other brands. Relationships: Another measure is determining the relationship strength. That is. No. Harvard Business School Publishing. the brand may be associated with influential users. March 11th 2003. For instance. Harvard Business School (Note). Once a brand strategy has been created and implemented. it must be evaluated to assess whether it is working or not.. “Brands and Branding”. all other factors being constant. This part of the brand strategy deals with implementation or engineering the desired brand culture across all the relevant aspects of a marketing mix and allocation of the requisite resources for achieving the desired end. Traditional market research and informal feedback methods like websites can be used to gather information and identify attitudinal measures – to make comparisons and deduce attitudinal strength.Exhibit II Brand Strategy Existing Brand Culture • Product Reputation • Relationship Perceptions • Experience Framing • Symbolism Strategy Drivers Environment Changes Competitive Benchmarking Brand Engineering Brand Culture Goal • Product Reputation • Relationship Perceptions • Experience Framing • Symbolism Product Design Service Delivery Service Quality Packaging Advertising Personal Selling Public Relations Corporate Comm. Brand managers can use any one or a combination of the following to evaluate the effectiveness of their branding effort: Behaviours: Behavioural loyalty is one way of measuring the strength of a brand. Attitudes: This measurement recognises the fact that strong brands share certain consumer attitudes. 9-503-045] The brand strategy should specify which marketing mix elements will be used and how they will be integrated into the overall plan to produce a consistent branding effort. This works on the principle that when brand value is high. and hence develop a deeper relationship with it. iv . Corporate Actions Channel Policy Retail Design Customer Interface Pricing Promotions Source: Holt Douglas B. page 1 [ECCH Ref. customers will depend more heavily on the brand.

3 The case studies included in this book span a broad range of industries.Equity: This is the ultimate or the most widely used technique of measuring the brand value. Pepsi and Cadbury in India details the different kinds of strategies. The dilemmas encountered during co-branding are highlighted in the case study Corporate Co-branding: Case of Yum! Brands. 3 “Brands and Branding”. Managing Brand Reputation: The Case of Coke. These case studies are based on the branding efforts undertaken by some of the world’s most renowned companies. op. Inc. Taiwan’s OEM Industry: Acer’s Branding Dilemma.cit. entertainment and sports to automobile and electronics. Samsung Electronics: Mr. v . Among several techniques for measuring brand equity. from fast food. Yun’s Efforts for Upscale Image and Hyundai’s Global Branding Strategies look at the challenges encountered by companies in Asian countries in their attempt to build a global brand. Destination Dubai: Building a Brand details the successful attempt of the royal family of Dubai to brand their country and James Bond – A Meta Brand? takes a look at the evolution of a literary character into one of the world’s most recognised style icons. all due to careful brand management efforts. and the case studies Branding – The Asian Dilemma. while Dasani’s European Misadventure and Euro Disney: Failed Americanism? highlight the pitfalls of improper brand management. the companies can implement to manage their brands when things go wrong. The case study. a common one is to determine the selling price of the brand in the current market.