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5. MANAGING AND DEVELOPING BRANDS
“Surely every brand has to die sometime!”
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> Using this guide > Introduction > What is brand management? > Brand management or brand strategy – what comes first? > Brand management – top-down or bottom-up approach? > The brand plan > Some brand management scenarios > Checklist > Case studies
Types of brands
How brands work
Managing and developing brands
Brand portfolio and architecture
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Using this guide
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live forever. MANAGING AND DEVELOPING BRANDS HOME Introduction “Surely every brand has to die sometime! ” If left to their own devices. there is no defined life cycle for a brand and they can. But brands don't have to die. most brands inevitably find themselves in a state of decline as they lose relevance or competitors steal market share. in line with the brand strategy. in theory.5. in theory. they can be protected from decline and nurtured into growth. That is the ultimate purpose of brand management and development. To Branding website © The Chartered Institute of Marketing 2003 5 . Brands are precious – they are often a company's most valuable asset – and by carefully controlling and tweaking them. Unlike products. Imagine if the Levi's brand had been left as it started and Levi's were still marketed as hard wearing trousers for miners – would the brand still be as successful as it is today? There is no defined life cycle for a brand and they can. live forever.
and the management of each contact point a consumer may have with the brand. the integration of all communications. and how to position it so that it appears different and worlds. It requires constant tracking of the brand and its competitors. [Temporal. Continuity is essential to the brand’s formation and longevity. and the delivery of brand consistency over time. and between shortterm satisfaction for various stakeholders and the long-term growth of the brand. but successful brands can escape the effects of time. This involves identifying perspectives of the two clearly what the brand stands for. 1992] > Brand management stands at the junction of company and customer and must integrate the totally different perspectives of the two worlds. MANAGING AND DEVELOPING BRANDS HOME Brand management What is brand management? stands at the junction of company and customer > Brand management is a process that takes control over everything the brand does and and must integrate the says. 2002] > Products might be mortal and governed by a lifecycle. Balances have to be struck between the external market and internal capabilities of the company. [Kapferer. [Arnold.5. That only happens with constant investment and innovation to keep the brand relevant. The overall aim of this process is to increase the value of the brand over time. better than competing brands. managing the way in which it is totally different perceived by others. 1992] To Branding website © The Chartered Institute of Marketing 2003 6 . between the company’s inputs into the products and the influences on consumer perception.
This enables the company to look at the way in which the brand promise is delivered to customers in a more holistic way. 2002] > Traditionally. and branding was just a support activity responsible for advertising and promotion.1). MANAGING AND DEVELOPING BRANDS HOME Brand management or brand strategy – what comes first? eGuide 4: Brand strategy > Every aspect of brand management should be driven by the overall brand strategy. To Branding website © The Chartered Institute of Marketing 2003 7 .5. Strategy gives focus and direction to brand management and provides the platform that enables brand managers to gain consistency in all their brand-related activities. business objectives and corporate vision were developed in the boardroom. The most progressive companies increasingly work in a networked or cross-functional way. [Temporal. [CIM/Maritz. The traditional organisational model simply does not fit with world-class branding today. where consumer insight drives the overall vision and mission of a brand and this in turn translates to business strategy and all related activities (see Figure 5. which has a department as custodian of the brand and a different department as custodian of the people. The traditional organisational model. simply does not fit with world-class branding today. 2002] The new model of brand management represents this shift. Other-wise it is easy to end up with confused images and perceptions of the brand. with little insight into consumer wants and needs.
Managers need to view key business decisions against financial criteria. MANAGING AND DEVELOPING BRANDS HOME Figure 5. In contrast. and as a result integrate brand building into the overall concept.. brand strategy needs to influence all day-to-day activities. many US companies delegate the development of the brand to someone who lacks the clout and incentives to think strategically.1: Brand link to corporate strategy in the 21st century BRAND VISION AND MISSION Brand management – top-down or bottom-up approach? Winning teams use ‘the brand’ as an organisational blueprint for the growth that is led from the very top of the company.. Top-level management support is obviously essential if a brand-led business approach is to have any chance of success. whether a high profile advertising campaign or the ways in which helpline teams answer the phone. The full potential of branding to drive growth is only realised when it is used to engage and align the resources of the company in delivering value for consumers and shareholders alike. [Taylor. but also against the brand promise. Or they pass the task to BUSINESS STRATEGY CUSTOMER RELATIONSHIP STRATEGY Top-level management support is obviously essential if a brand-led business approach is to have any chance of success. MARKETING Source: Temporal (2002) To Branding website © The Chartered Institute of Marketing 2003 8 .5. To truly lead the business. 2003] “The successful European companies we’ve studied share one critical characteristic – senior managers drive the brand.
It facilitates unified behaviour and minimises surprises as customers encounter variants on the brand promise from different employees. 1994] enabling the brand to have a clear attitude. employees appreciate how genuine these values are and are more likely to be committed to delivering them.” [Aaker. MANAGING AND DEVELOPING BRANDS HOME their agency. First. 2001] Powerful brands are characterised by enthusiastic leaders who have a passionate belief in a few values. Relying upon their agency leads to two problems. Placing more emphasis on internal brand management through aligning staff values with brand values minimises the often-cited problem of variable quality between employees. Staff look to strong leaders for guidance and powerful brands are characterised by enthusiastic leaders who have a passionate belief in a few values. [de Chernatony. but rather living them. A further advantage of having a focus on brand management and looking more inside the organisation is that it gives rise to a corporate persona with a deeply felt set of values To Branding website © The Chartered Institute of Marketing 2003 9 . loss of synergy and ultimately performance that falls short of potential. the driver of future growth opportunities.. That distance can make the co-ordination of efforts difficult. By not just talking about these values. L. a situation that can result in consumer confusion.5. in most cases it creates a dissonance between senior managers and their key asset. the brand.
2002] “Positioning is a process of ensuring that a brand can fight through the noise in the market and enables the brand to occupy a distinct. [Taylor. giving a clear picture of both the ‘job’ the brand needs to do and the ‘human side’ to be reflected in tone and feel. meaningful and valued place in the target customers’ minds. the external or internal circumstances may call for some changes in the execution of brand strategy. It inspires and guides the team. market definition. 2002] Case study: Barr’s Irn-Bru When managing a brand. image and identity boost return on brand investment. What is important is that within a company everyone uses the same tool definition and format.. giving a clear picture of both the ‘job’ the brand needs to do and the ‘human side’ to be reflected in tone and feel. When positioning is clearly defined. 2002] Defining the brand and its market position eGuide 3: How Brands work: Brand positioning. promise. providing real substance and content that can be the starting point for a compelling and unique story. 2002] The different elements of positioning (essence. benefits. it can be a central tool for helping To Branding website © The Chartered Institute of Marketing 2003 10 . The brand plan “The most effective way to determine and communicate the value of your brands to others is to create a brand plan that includes objectives. brand truths. [Taylor.” [LePla and Parker. It pinpoints what makes the brand motivating. target consumer) should come together as a coherent whole. In the case of most strong brands. [Taylor. but the values underpinning positioning should remain constant. consumer insight. positioning is underpinned by brand truths. different and true for target customers. strategies. In doing so it should inspire and guide the team to help them develop a competitive and coherent brand. Speaking the same language is crucial to facilitate effective communication. The choice of tool for defining a brand’s position is of little importance. values.” [de Chernatony. brand refreshment or rejuvenation. personality. L. MANAGING AND DEVELOPING BRANDS HOME [Brand positioning] inspires and guides the team. 2001] Brand positioning plays a vital role in keeping a brand on track towards its destination. tactics and measurements.5.
Features. Rallying calls 2. Consumption: broader group of buyers Market definition The product and service areas in which the brand wants to operate. attributes reason to guiding principles exist and properties that and beliefs help underpin the promise Benefits Personality The key motivations Human characteristics Brand for buying the guiding tone. John Wiley & Sons 1. D. Insight foundation To Branding website © The Chartered Institute of Marketing 2003 11 . feel promise brand and style Summary of what the brand offers and why it is better than alternatives Core insight Human truth that opens door to opportunity for your brand to improve everyday life Consumer target Positioning: person the brand must excite and involve.2 Example positioning tool (pick your own shape) 4. (2002) The Brand Gym. Human side of the brand Source: Taylor. Who will lose if we win? 3.5. MANAGING AND DEVELOPING BRANDS HOME Figure 5. Job of the brand Essence Shorthand distillation Brand Values of the brand’s truths Fundamental. London.
5. communication emphasis Specific reasons for purchase. not reasons to believe Pro-vitamin B5.3a: Positioning tips and tricks Market definition Inspires and guides Full view of real competition Ideas for stretch Empathy with the core consumer. values. understand their life Open the door to an opportunity to improve everyday life Tips and tricks Who wins when we lose? Use benefits not just product terms Capture attitudes. colour Bad examples Videotapes Blockbuster Good examples Rentable home entertainment Blockbuster Food enthusiasts who enjoy good food but are pressed for time Knorr People who are concerned about their baby having a wet bottom and getting nappy rash as this makes them worry about not being a perfect parent Pampers Blockbuster promise: ‘Get the film you want or hire it for free next time’ ‘Hair so healthy it shines’ Pantene continued/… Insight foundation Positioning target AB women aged 25-45 Knorr Core insight Describe a human truth and how this opens a door for the brand Add colour and emotion Parents worry about nappy rash Pampers Job of brand Brand truths (limit to 2-3) Development of product features and attributes Be specific and concrete Good service Blockbuster Benefits (limit to 2-3) Product development. doesn’t dry hair Pantene To Branding website © The Chartered Institute of Marketing 2003 12 . MANAGING AND DEVELOPING BRANDS HOME Figure 5.
emotion and edge Capture emotion not just function. friendly Clearasil Rally calls Promise Key summary input (limit to 15-20 words) for briefs Focused on what it is and why it is better. feel and style of communication and front-line staff Tips and tricks Make them provocative and polarising Bad examples Quality. honest. teamwork Prêt à Manger Good examples Setting the bar high. (2002) The Brand Gym. D. one for all. brand behaviours with customers Guide tone.5. MANAGING AND DEVELOPING BRANDS HOME Figure 5. male attractiveness Lynx Essence (limit to 2-4 words) Shorthand check for reviewing the brand mix Source: Taylor. London. inspire future growth Affordable short-break holiday offering best combination of activities for all the family DLP Best shave Gillette. To Branding website © The Chartered Institute of Marketing 2003 13 . John Wiley & Sons. straight as an arrow. best mate Clearasil Magical place where everyone can live out adventures they have dreamt off DLP Ultimate performance Gillette. all for one Prêt à Manger Solid as a rock. pulling power Lynx Human side Personality (limit to 3-4) Make them colourful not bland Reliable. Inject colour.3b: Positioning tips and tricks Values (limit to 2-3) Inspires and guides Issues to campaign on.
A. Butterworth-Heinemann. communications and culture. That promise is carried out by people at all levels of the company – from CEO to the line worker – so that integrated branding is much more than communications strategy or a set of messages. 2002] “Successful branding is not just about communicating a unique personality or brand identity. [LePla and Parker. services. (2001) From Brand Vision to Brand Evaluation. it produces unique and valuable customer relationships.4: Facilitating an integrated brand through addressing four key brand communicators (adapted from Wolff Olins.. They are the heart Source: de Chernatony. 1995) Performance of the product/service in relation to the brand promise “Customers experience brand behaviour not brand plans. and O’Malley. through products. Companies keep their promises by understanding their brands and acting on that understanding in every endeavour.5. To Branding website © The Chartered Institute of Marketing 2003 14 . L. 2002] PRODUCT/ SERVICE STAFF BEHAVIOUR BRAND VALUES COMMUNICATIONS ENVIRONMENT At the heart of the brand is the promise that it makes to its customers. When brand promise meets customers in an integrated way. and that makes it a responsibility of everyone in the company. London. MANAGING AND DEVELOPING BRANDS HOME Figure 5.” [Stagliano. These brand promises are no longer just empty advertising slogans. D. It is about delivering the promise made to customers.
2001] Internal alignment behind the brand promise Mobilising the people in the organisation behind the brand is the key to achieving growth. which amounts to a cosmetic cover-up of problems within the organisation.12. it’s living the brand every day in every way. energy and passion BEHAVIOURAL My role is clear I know how to treat customers The key messages I need to communicate are clear BRAND ENGAGEMENT and soul of the brand. M. In the same way that consumers are disappointed when a product Lack of action Lack of discretion and consistency EMOTIONAL The brand fits my values I belong here I live the spirit of this company Source: Poundsford. Thus branding is no longer just sending the messages. [Taylor. This requires taking people on a journey of commitment from rational understanding through emotional engagement to alignment of behaviour. (2001) Engaging your workforce.5. Feb.5: Brand engagement INTELLECTUAL I understand our brand I know what we stand for I know how we are different I know where we are going And how we will get there Lack of commitment.” [Schultz & Schultz. To Branding website © The Chartered Institute of Marketing 2003 15 . They are the things that everyone in the organisation is charged with delivering. p. Brand Strategy. MANAGING AND DEVELOPING BRANDS HOME Figure 5. without motivating and directing the people in the organisation it is impossible to deliver the brand promise consistently. 2002] No matter how strong the insight. vision and strategy are. More and more people are using internal communication to try to encourage people to ‘live the brand’. Many of those are falling into the trap of talking about the vision without any effect on the way a business is run.
omnipotent message. The aim is to support a single positioning through advertising. Essex. the same goes for the employees and the company they work for. In fact. p. or co-branding. 377. (1996) The Brand Chartering Handbook. To Branding website © The Chartered Institute of Marketing 2003 16 . “You don’t create a culture. There is nothing to be gained from promising one thing in your advertising and not being able to deliver at the point of sale. Ch. MANAGING AND DEVELOPING BRANDS HOME fails to live up to the promise made in communication.6: Integrated marketing communication and the brand SALES PROMOTION DIRECT RESPONSE DIRECT MARKETING MEDIA ADVERTISING BRAND VALUES PACKAGING AND DESIGN POINTOF-SALE PUBLICITY AND PR EVENT MARKETING Source: Macrae.5. you catch it like a virus. head of internal communication at Vodafone] Integrated brand communications Central to modern marketing management is the concept of ‘integrated marketing communications’. such internal communication has a limited role to play in engaging and aligning people with the brand. They all need to tell broadly the same story. there is nothing worse for a brand than empty promises. People see new behaviours and copy them until they become the way we do things here” [Phil McManus. PR. Addison Wesley. This is not to say that there must be one rigid. A holistic view of the brand should be pursued. rather it suggests that the messages conveyed by different media need to interconnect. Another reason for adopting integrated brand communications is that messages aimed at one audience are increasingly seeping out into Figure 5. the planning and execution of all types of communication to meet a common set of objectives for the brand. In reality.
price and promotions have this in common: they are all within the control of the marketing company. The brand needs to embody a vision or mission. 2001] However. the spheres of other audiences. as well as customers and consumers. [Uncles. shareholders) as isolated and mutually exclusive groups. To Branding website © The Chartered Institute of Marketing 2003 17 . but their effect on the public can be significant. [Uncles. is not.” [Bullmore. Arguably. there are other factors which lie outside the brand’s control. 2001] Advertising. Examples of these include: a story in the press about racial discrimination or unethical employment practices at a brand’s factory.5. 1996] > All audiences interact and interconnect. To be rather more accurate: the transmission of these brand stimuli is within the control of the marketing company. but not necessarily in ways that were originally intended. as employees are the most direct link between the brand and its customers. > To do this effectively the process needs to be managed from the centre. > All audiences should be informed and involve employees and shareholders. Because they are impossible to foresee or orchestrate. consumers. employees. brand communications ought to be broadly consistent across these audiences. indeed. a product recall for safety Five points to remember when implementing integrated marketing communications: > Audiences will attempt to interpret the messages you send. [Bullmore. MANAGING AND DEVELOPING BRANDS HOME Employees are the most direct link between the brand and its customers. It would be misleading to think of different stakeholder groups (eg. as much attention should be given to ‘managing the employee brand’ as to the consumer brand. because the same person often has different roles. an anti-brand crusading website. > It is the task of management to maximise the interpretation of intentional messages and minimise the interpretation of unintentional messages. packaging. 1996] Maintaining brand integrity across touch points “The way we interpret the body language of brands means that the apparently trivial can be greatly significant. The reception however. they tend to be totally ignored.
label designs. advertising. apologise and take corrective action. and every single one of them will have some lasting effect on the people’s aggregate belief in the brand – and therefore on its success and profitability. Because so much depends on having a product in the right place at the right time. Manufacturers’ brands now also need To Branding website © The Chartered Institute of Marketing 2003 18 . or two cars of the same make broken down at the roadside within a mile of each other. it is necessary for manufacturers to take the retailers’ reaction to products into account and develop a mutually beneficial relationship. but distributors. [Bullmore. They protect. slogans. dangerous driving by a clearly branded truck. Most chance encounters are negative in impact. it is no longer the consumer who is solely responsible for the success and failure of a brand. Distribution In the field of consumer goods that do not require much consumer involvement. 1999] reasons.5. MANAGING AND DEVELOPING BRANDS HOME Because so much depends on having a product in the right place at the right time. They are also the ones who can cause the premature decline of a new brand if they judge its turnover to be too sluggish. the purpose is to encourage investment and innovation and to discourage copying. for example. but also to those who recover. Brand protection Intellectual property – what is it? > Intellectual property (IP) rights provide legal protection for some of the most important aspects of a brand. informed and trusted staff can turn even a catastrophic brand encounter into a reinforcement of brand loyalty. to compete with distributors’ own brands which offer higher margins to retailers. Case study: Remington vs Phillips > These rights are essentially preventative in effect: they prevent a third party doing something they would otherwise be able to do. Intelligent. packaging shapes. they are the ones who can cause it to fail. domain names and sometimes the product itself. it is necessary for manufacturers to take the retailers’ reaction to Future prizes will go not just to those who products into account. the name. make the fewest errors. Even sounds and smell can be protected if they are distinctive. In deciding whether or not to give room to a new brand. logo.
mortgaged or leased just like tangible property such as land. MANAGING AND DEVELOPING BRANDS HOME > IP may be bought. > Take action against misuse immediately. > Rights tend to be national with every country having its own laws (with exceptions like the Community Trade Mark in the EU). > The main rights associated with brands are: > Trademarks (registered or common law) > Copyright and database rights > Designs > Patents > Unfair competition/passing off > Trade secrets/confidentiality. Copyright > Ensure that with any creative work from an outside supplier the copyright is transferred to you. Best practice Trademarks > Choose new trademarks carefully.5. domain names on the Internet provide important signposts to the brand. > Register the trademark. > Make sure you use them correctly. To Branding website © The Chartered Institute of Marketing 2003 19 . > Although not an intellectual property right. sold. > Control their use when licensing. This is usually called ‘assigning’ or ‘licensing’ and can be an important business opportunity and source of income. > Where possible find ways to incorporate small but deliberate mistakes to prove copying has taken place. Owning a right in one country does not necessarily mean the right is held in another country. control and monitor usage. requiring careful management. > Make sure they aren’t being used by others. > When merchandising copyright material.
> Take action quickly against any leaks. > Look out for copies and take action if you find any. To Branding website © The Chartered Institute of Marketing 2003 20 . Domain names > Establish a centralised policy for clearing and tracking your domain names(s).5. > Laws vary widely from country to country. Designs > Apply for design registration as soon as possible – certainly within 12 months of ‘publicly’ disclosing the design. > Ensure your rights are acknowledged and protected in any merchandising agreement. > If you commission work that includes an invention. Patents > Keep ideas confidential until filing a patent application. > Before filing only make any disclosures to those under an obligation of confidence. > Preserve any evidence of confusion. > Be vigilant. try to get all patent rights outright. Take action quickly. > For Unregistered Design Right. MANAGING AND DEVELOPING BRANDS HOME > Take action on copying immediately. Unfair competition/passing off > Watch out for anyone who suggests there is a connection with you where none exists. Trade secrets/confidentiality > Treat it with great care and on a ‘need to know’ basis. record the design in a design document or make a prototype to obtain protection. > Mark everything involved as confidential.
however. in this scenario.. With the significant investment comes commercial risk although a deep understanding of users. Amazon. The whole organisation needs to be culturally aligned to deliver that proposition with passion. may not necessarily be positive and may not evoke any strong beliefs at all. and McDonald. A brand is not built overnight but by continued use of a product or service over time. Brands that are pioneers have the opportunity to gain greater understanding of the technology by moving up the learning curve faster than competitors. including users.com for buying books on-line). preference. Dot com companies spent millions in the late ’90s building awareness but failing to build brands. establishes perceptions specific to your brand. Building a brand from scratch is not the easy option. They may have no opinion of the value delivered over competitors. Such perceptions form the brand although. a particularly weak one. building the team and culture to deliver it. and builds the brand. L. Customers become loyal and ask for a brand which has come to define the product field (eg. with greater market knowledge. although it may not have been consciously identified or managed. will have a perception. 1998] Being the first to market with a new brand establishes a reputation for being the original. People. involved and lengthy commercial propositions. in creating the superior functional performance. with greater market knowledge. It involves significant investment. The starting point is the recognition that – for existing companies. and potentially greater economies of scale. Users have to experience the functional advantage to the extent that they depend on it.5. Being the first to market with a new brand. however. and potentially greater economies of scale. To Branding website © The Chartered Institute of Marketing 2003 21 . The delivery of that proposition must be consistent. reduces the chances of failure. [de Chernatony. communicating it and supporting it. confident that it really delivers superior performance every time. Consistent experience of the benefits builds relevance. MANAGING AND DEVELOPING BRANDS HOME Some brand management scenarios Developing a new brand New brand launches are risky. reinforced where possible by a guarantee. a reputation for being the original. It requires a proposition that delivers a genuine functional advantage over competitors. built from marketing research studies undertaken prior to launch. those perceptions. products and services – a brand already exists. confidence and trust in the minds of users. M.
It is important to consider the relationship the brand has with consumers and whether this is still relevant. Changes in consumers’ lifestyles. The first stage in maintaining and revitalising brand relevance is to investigate what consumers think and feel about the brand. or the same performance for less cost. M. L.. According to Davidson  new brands should be launched only where some or all of these conditions apply: > No existing company masterbrand or individual brands can be stretched far enough to capitalise on the new opportunity > The new brand is capable of achieving superior customer value. Maintaining/re-building brand relevance “Being clear about what a brand does and. equally importantly. pressures and needs must be understood so To Branding website © The Chartered Institute of Marketing 2003 22 . managers can sustain their brand’s competitive advantage through the way its activities fit and reinforce each other. low-cost operation. MANAGING AND DEVELOPING BRANDS HOME Case study: Amazon Entering new geographic markets Read more about this topic in eguide 2: Types of brand – Global brands Failure rate for new brands is much higher than for new products using an existing brand name. does not stand for. is one of decline. marketing and sales support.” [de Chernatony. consumers’ needs change.5. and therefore the additional revenue necessary to achieve acceptable profits. This is due to the added costs of gaining consumer awareness and trial. relevant distinctiveness. and McDonald. cultures evolve and existing users grow older. 1998] The natural state for brands. acceptable economics > The opportunity can only be exploited fully with a new brand > The proposition and economics of a new brand have been thoroughly pre-tested. Failure rate for new brands is much higher than for new products using an existing brand name. if left alone. As competitors deliver better performance. brands can quickly lose their relevance.
Changing the brand’s performance may not always be the right answer. Relevance can be reestablished by adjusting delivery of the product or service. personality or communication. M. If a brand fails to perform because it has been leapfrogged by a competitor. Case study: Lucozade There needs to be mechanism in place whereby any activity that affects the brand is carefully considered against the statement of core values to ensure that none of the core values would be adversely affected. If a brand is losing its relevance. It is also necessary to understand the gap between the performance of current solutions on the market and consumers’ ideal. 1998] Finally. including delivery of the product or service. To Branding website © The Chartered Institute of Marketing 2003 23 . the distribution channels used. Budweiser added an idiosyncratic element to its brand personality through its ‘Whassa?’ advertising campaign.. This type of system emphasises a long-term view of the brand and the brand equity gained over time as opposed to short term measures. and mcDonald. If any changes are required to brand performance. while Stella Artois succeeded by adopting very different positioning in the UK market (‘reassuringly expensive’) compared to its native Belgian market. as any gap risks being filled first by a competitor. pricing or communication. marketers need to consider how these would affect what the brand has always stood for – its core values. all changes must be carefully coordinated to ensure that each element of the marketing mix supports the new proposition. [de Chernatony. Where brand performance is weakened.5. or a gap exists between current performance and consumers’ ideal. A further advantage of having a statement of brand values is that it enables managers to check their interpretation of the brand against the agreed view. L. pricing or communication. performance-related innovation is likely to be the primary driver for maintaining brand relevance. that brand will be damaged and must re-assert its leadership position if it is to continue to thrive. Solutions to maintaining and revitalising brand relevance will depend on the nature of the problem. can the brand be re-positioned to meet different or new needs? Relevance can be re-established by adjusting any of a range of elements in the marketing mix. MANAGING AND DEVELOPING BRANDS HOME that the solutions delivered by the brand remain relevant and effective. the distribution channels used.
D. In contrast. when it is possible. Stretching the brand into new product areas Brand extensions can be one of the best sources of profitable growth for a brand. profitable business growth whilst maintaining. They also have the potential to rejuvenate the brand’s imagery. 1997] (see figure 5. [Taylor. MANAGING AND DEVELOPING BRANDS HOME This proposition needs to be communicated to all stakeholders in the brand. What is clear about brands with a long history is that they have been subtly adjusted to keep them relevant to changing market conditions. Brands that are based on functional value may be more difficult to stretch. D. brand equity. L. 1998] The task of revitalising old brands is less difficult when the core values of the brand have been protected and consistently presented to consumers. Too many extensions. [de Chernatony. it is important to consider two dimensions: > Functional stretch: this dimension concerns the delivery of different benefits that require different product features and functionality. The task of revitalising old brands is less difficult when the core values of the brand have been protected and consistently presented to consumers. may eat up money and resources without delivering any real difference in performance over existing products. The primary motivation behind brand stretch should always be to deliver To Branding website © The Chartered Institute of Marketing 2003 24 ...7).5. [Taylor.. however. > Emotional stretch: this dimension relates to the emotional associations and personality of a market or segment. 2002] When evaluating brand stretch. than to develop and launch a new one. posing the risk of damaging rather than enhancing the core brand. and preferably increasing. 2002] Case study: Wedgwood A useful tool for mapping out the extension areas is the brand circle [Davidson. This is done through attracting new users. creating new usage occasions. brands that are rich in emotional values are less associated with specific functional benefits and so are easier to stretch across many product areas. It can be less expensive and less risky to revitalise an established brand. superior performance and premium pricing.
7: Example of a brand circle NO-GO AREAS Involvement would seriously damage and compromise clarity of brand proposition EXTENSION AREAS Areas to which brand franchise can be widened without damage OUTER CORE Optional attributes INNER CORE Critical elements in brand identity Ready to drink Average Enhanced taste health Blackcurrant NO-GO AREAS EXTENSION AREAS OUTER CORE Out of home Non foods Male positioning Glass INNER bottles CORE > Great taste > Premium priced Mothers Sugar No > Health benefits with free artificial children flavouring Concentrated drink Carbonated Flavours Low price Plastic bottles Ribena UK sales increased by 1000% in 1980-95 Medical positioning Mainstream soft drink Source: Davidson (1997). Even More Offensive Marketing To Branding website © The Chartered Institute of Marketing 2003 25 . MANAGING AND DEVELOPING BRANDS HOME Figure 5.5.
A brand can also be leveraged by entering Extension can be beneficial to a brand. consumers have demonstrated a strong preference for co-branded offers. and a careful choice of target market. heat will flow from the warmer to the cooler until their temperatures are equalised’. Co-branding another product class or market. the master brand will add warmth and vitality to the sub-brand but it will be unwittingly drained of heat itself. As with traditional brands. boost flagging consumer interest and increase financial returns. Co-branding has fuelled the growth of some of the most powerful new brands of recent times. 1997] > Benefit established brands – whether purchasing IBM computers with ‘Intel Inside’ or clothes with Lycra® ingredient. It can: To Branding website © The Chartered Institute of Marketing 2003 26 . extensions to new sectors may stretch brand equity too far. and their temperatures are different. Bullmore compares brand extension to the second law of thermodynamics. Brand owners in both service and product fields are increasingly realising the significant advantages to be derived from co-branding.5. a similar focus on long-term brand development. such as Intel. which states that ‘when two objects touch. > Boost new brands – for new brands an alliance with a famous partner may bring immediate credibility. not by a brand extension but by band partnerships. Co-branding provides an opportunity to create a new income stream. When existing strong brands are used to foster new brands. MANAGING AND DEVELOPING BRANDS HOME When existing strong brands are used to foster new brands. A careful match of both brands’ values. Co-branding is not without risks however. NutraSweet and Cisco. the master brand will add warmth and vitality to the sub brand but it will Co-branding be unwittingly drained of heat itself. however. [Bullmore. should ensure the success of such union. however it can also be dangerous. > Assist brand development – a co-branded range can be developed using the distribution channel of one of the brands.
While a franchise company believes it has a winning formula. However.5. [Crainer. To Branding website © The Chartered Institute of Marketing 2003 27 . or insufficient attention is devoted to the consistency and quality of the customer experience. It can allow the brand to become national (or international) in its coverage quickly and at minimal cost. some franchises have fallen down. we agree to take care of the image and promotion of the Benetton trademarks and guarantee speed and timeliness in the supply of our merchandise. the franchisees will want to do things their own way. Its shops are franchises. Luciano Benetton describes the process as follows: “A Benetton shop owner agrees to sell Benetton products. as they claim to know the local market better.” [Crainer. 1995] The trouble comes when the answer to the thorny question of who actually runs the [franchise] business is not clear. The company advises on shop decor. simply because the franchiser and the franchisee could not agree on how a business should be run. MANAGING AND DEVELOPING BRANDS HOME Franchising Turning a brand into a franchise has a number of key attractions. location. advertising and product purchases but it does not receive royalties on sales or give exclusive rights for a particular area. 1995] Benetton is an interesting example. The trouble comes when the answer to the thorny question of who actually runs the business is not clear.
will succeed. MANAGING AND DEVELOPING BRANDS HOME Checklist > The promise that the brand represents should be based in reality.5. To Branding website © The Chartered Institute of Marketing 2003 > Do you keep the brand fresh though updating it as the market changes? > Are your brand extensions consistent with core brand values? > What are the idiosyncratic elements of your brand? > The active brand. and direct experience? > Are you guilty of making empty promises? > Do you measure your brand equity regularly? > Brand differentiation should be more than skin-deep. communication. > What are the core values of your brand? > Are they conveyed in every consumer-brand encounter – through employees. meaningful and valued by the various stakeholders? > Can a coherent value system be inferred from everything your brand does? > Get the right balance between consistency and change. not the passive brand. > How is your brand different to competitors? > Are those differentiating aspects relevant. > Is your brand a leader or a follower in the market? > How high up is innovation on your brand’s agenda? 28 .
Remington vs Phillips: a close shave To Branding website © The Chartered Institute of Marketing 2003 29 . Lucozade: in sickness and in health 4. MANAGING AND DEVELOPING BRANDS HOME CASE STUDIES 1. Barr’s Irn Bru: one hundred years young 3.5. Wedgwood: stretching the brand 2.
The brand has expanded into new territories and taken market share from its competitors. Determined not to lose brand focus. In 1986 the company merged with Irish crystal manufacturers Waterford and the two have since pursued product developments outside of their core ceramics and crystal ranges as they sought to expand into the luxury goods market as a whole. As a result Wedgwood have been able to continue their diversification and growth in the luxury gifts market whilst maintaining their core values of tradition and association with fine pottery which provide the brand with its integrity. upmarket customers. leather goods and even gourmet foods.5. particularly in Japan To Branding website © The Chartered Institute of Marketing 2003 where the Wedgwood name has come to symbolise gifts of good taste and also in the UK where long standing relationships with designers such as Jasper Conran have given the brand an association with high fashion. As Wedgwood diversified. they launched a major new advertising campaign to bring attention back to the premium china range and to market the brand as more contemporary and ‘younger’ than ever before. Wedgwood: stretching the brand The Wedgwood brand is one of the oldest and most prestigious found in the world today. Wedgwood have diversified and expanded into new categories over the past two decades. the Wedgwood brand has grown to encompass products such as jewellery. and has a long and proud history of delivering fine pottery to affluent. MANAGING AND DEVELOPING BRANDS HOME 1. The brand was achieving double digit growth and sales had risen to a record high of £417million but the research was still disconcerting for Wedgwood. renowned as the ‘Father of English Potters’. table linen and lamps. The quintessentially English brand was founded in 1759 by Josiah Wedgwood. so consumers perceptions of the brand altered – to the extent that research undertaken in 1997 showed that whilst the brand name held a good reputation and suggested quality to consumers. they no longer associated it with it’s core product range of china tableware. however. both to be used as purchased and to be handed down as family heirlooms. 30 . Whilst Waterford have developed ranges of writing instruments. By applying the emotional associations of the brand to a variety of new products.
More than this. eg gifts in Japan. There are very few countries in the world in which the leading cola is outsold by another soft drink brand. The recipe remains a closely guarded secret. So how does IrnBru manage to punch so far above its weight? Firstly the product itself is unique. it is the taste of home. BACK 2. or even looks like it. Persil. for those abroad. MANAGING AND DEVELOPING BRANDS HOME Wedgwood’s most recent developments have included sponsoring the London Fashion Week and decentralising operations so that more individual attention can be paid to each territory. but Scotland is one of them. Nothing else tastes like it. it is a reminder of their childhood. For Scots of all ages. and Nescafé. Clearly the distinctive flavour of Irn-Bru appeals to the Scottish palate. By concentrating on their strengths in individual markets. but the scale of the brand’s success is out of all proportion to the levels of sales a non-mainstream soft drink flavour can normally expect. fashion in the UK and tradition in the US. yet sales in Asia and market share in the US have both shown dramatic growth and the company is now looking to double sales across the brand over the next five years. Recent problems such as the slowing of the global economy and the impact of September 11th have hurt Wedgwood as a luxury producer. ‘Scotland’s other national drink’. Wedgwood now aim to break the brand into even more markets such as home furnishings and toiletries as brand managers seek to carefully expand the portfolio further. in British Brands. There is literally nothing else like Irn-Bru. Summer 2001] 2001 marks the hundredth birthday of Irn-Bru.5. To Branding website © The Chartered Institute of Marketing 2003 31 . the year sees standard Irn-Bru in pole position as the biggest selling grocery brand in Scotland – ahead of such international grocery giants as Walkers Crisps. Barr’s Irn-Bru: one hundred years young [The Leith Agency for Barr Soft Drinks. Issue 14.
And the best way to do that is to constantly surprise people. The best description we found was ‘likeable maverick’ – a selfconfident. The marketing of the brand would have to enhance. We had to recreate the advertising so that the English consumer. Competing against some brands with much bigger budgets. 32 . The brand ends up very much loved but not very often purchased. As a result a uniquely compelling personality for the brand has been developed over time. But in talking to its biggest fans. Shrewd marketing has helped Irn-Bru to avoid this fate. Since Irn-Bru itself tastes like nothing else in the world. unconventional and independent character who wouldn’t think or behave in quite the same way as other people. This kind of initiative helped to get under the skin of Irn-Bru. Barr’s wished to grow the brand in England. exploring strategic and creative marketing ideas in the classroom To Branding website © The Chartered Institute of Marketing 2003 produced a notably more dynamic set of responses. we realised that no two kids described Irn-Bru in the same way. not deny this indescribable character. Whereas in a research group teenagers can easily turn surly and uncommunicative. MANAGING AND DEVELOPING BRANDS HOME But it is easy for brands with such a strong heritage to lose contemporary relevance. And maverick is also a very apt description of what we sought the marketing to achieve. Research showed that the ‘Made in Scotland from Girders’ campaign was extremely successful in Scotland. By the middle of the nineties. in school they are expected to contribute their own ideas and opinions.5. but this success didn’t transfer to the English market. Latent brand affinity isn’t always transferred into sales. Consequently. who had not grown up with the brand for the past 90 years. Irn-Bru has to shout to be heard. As a character-type this description of the brand has a great deal in common with the way our teenage audience likes to be perceived itself. could also relate to it. The Barr’s brand team began visiting schools to find out what teenagers were talking about. and in particular what really made them laugh. This had advantages over traditional research methods. the marketing of the brand had to do justice to it. The key was to adopt the right personality for Irn-Bru.
there is every reason to suppose that Irn-Bru can enjoy another hundred years of healthy growth. a drink of Lucozade can To Branding website © The Chartered Institute of Marketing 2003 33 . when there is appetite loss or food is difficult to keep down. Because Irn-Bru’s marketing is based on genuine consumer insight. Irn-Bru’s advertising has been consistently amongst the most popular and talked about for its teenage target audience. to above-the-line advertising. Director.5. Lower levels of sickness. Smithkline Beecham. less frequent ‘flu epidemics and price increases all contributed to a decline in consumer consumption of Lucozade and between 1974 and 1978 alone. IrnBru sales in England now account for almost a quarter of total volume. Summer 1997] It is not without irony that a 50 year old brand aimed at ‘aiding recovery’ was itself not in good health at the end of the 1970s. On TV. sales had fallen by 30%. MANAGING AND DEVELOPING BRANDS HOME These insights have been used to inspire the creativity of Irn-Bru’s marketing activity at all levels. Issue 4. Scots have always loved Irn-Bru – now the gap is closing as English teenagers increasingly adopt a brand that speaks to them too. posters and TV. from website design to carefully tailored sponsorships. from the ‘See What Irn-Bru Can Do For You’ campaign to the current award-winning work. it works just as well south of the border too. Consumer Healthcare Communication. It was bought by Beecham in 1938 and launched in its classic yellow cellophane wrapped bottle with the strapline ‘Lucozade aids recovery’. BACK 3. Drastic steps needed to be taken or half a century of brand heritage would be lost with little chance of recovery. So long as marketing continues to keep the brand young. in British Brands. The maverick tone of voice has proven flexible enough to produce award-winning advertising on radio. Lucozade: in sickness and in health [Ann-Marie Salmon. The glucose in Lucozade is in a form that can be easily assimilated into the body so that in illness. And Irn-Bru’s brand image has improved dramatically in England wherever the campaign has been seen. not nostalgia. Lucozade was first developed in 1927 by a Newcastle chemist for his son recovering from jaundice.
Lucozade would be expensive and the brand had a lot of negative baggage with the younger target audience as something their mums had given them when they were ill. however. However. This campaign was only part of the company’s effort to get in-health usage.5. MANAGING AND DEVELOPING BRANDS HOME help provide the energy the body needs to recuperate. However during the 70s. Housewives and children were still the predominant users and illness and recovery the main reasons for consumption. these positive aspects were balanced by a number of other factors. To address this problem. the brand started its steady decline. The unique selling proposition to justify the price premium was based on the brand’s particular benefit claim . In addition. a new 250ml wide-mouth bottle was introduced in the ‘one-shot’ market which carried the new brand positioning ‘Lucozade replaces lost energy’. But whatever short term benefits accrued from the advertising and packaging initiatives. This campaign increased sales by 11% and although the prior decline was arrested. during which time it became Beecham’s biggest selling brand. In 1980. not least was the total domination of this market by Coke and Pepsi. It was felt that these problems could be addressed via advertising which would do two things . growth was not maintained for long and by the end of 1979 sales had levelled out. To Branding website © The Chartered Institute of Marketing 2003 As a result it was decided that the best growth opportunity for the brand was in the carbonated soft drinks (CSD) market. it was clear from a usage and attitude study conducted in 1982 that the underlying character of the brand had not changed dramatically from its historical norms. The creative solution was to be found in sport which simultaneously addressed both the target audience and the product claim. 34 . The brand was consistently promoted on this basis through the 50s and 60s. the rationale being the brand’s excellent in-store positioning and distribution strength in both grocery and ‘corner-shop’ markets and the volume potential in the CSD market.‘Lucozade is not only delicious and refreshing. but can quickly replace lost energy’. new advertising was developed aimed at extending usage by positioning it as an in-health pick-me-up for housewives.justify a price premium via a unique selling proposition and in execution use imagery which the new young target audiences would find motivating.
From this assessment came the ‘Traffic Lights’ TV commercial which sought to ‘portray’ the energy of Lucozade rather than ‘explain’ it. Daley Thompson was signed as the spokesman for Lucozade and in July 1983 he featured in a Lucozade ad for the first time. In the first year of the new advertising. in the ten years between 1985 and 1995. All of these introductions have included innovative new packaging elements. ‘Lucozade aids recovery’ BACK To Branding website © The Chartered Institute of Marketing 2003 35 . Even more graphically.. global sales of the brand increased from £12 million to £125 million. the 1988 launch of the Lucozade Sport isotonic drink and the 1995 launch of the NRG teen drink. developed new loyal consumer groups and yet have remained true to the core character of the brand as an energy drink. Results were mixed and extensive analysis of the advertising showed that consumers liked Daley but didn’t connect him totally with the brand. younger target audience. Many of these concepts have been successfully transferred to markets outside the UK in Ireland. volume sales increased by 40% and were accompanied by sales increase in the original bottle of 4%. with no significant gains in distribution or changes in pricing. a true illustration of a brand fulfilling a promise made 70 years ago. Asia and Australasia.5. Since then.. MANAGING AND DEVELOPING BRANDS HOME At that time. The combination of Daley Thompson in slow motion with the heavy metal Iron Maiden music chosen for its wind down and slow build to thunderous crescendo embodied the before and after promise of dynamic energy. the brand has gone from strength to strength with the introduction of new flavour variants. at the same time branding the advertising unmistakably. Quantitative and qualitative research showed that the energy message was getting through to both existing users and the new.
Apparently accepting the finer design of the product to the traditional twin headed shavers they produced. The two companies pitched their designs against one another for some 55 years as market leaders in electronic grooming products with Phillips claiming superiority for their three-headed Philishave product. which allowed companies to register tunes colours and three dimensional shapes. including the revolutionary triangular three-headed electric shaver in 1966. MANAGING AND DEVELOPING BRANDS HOME 4. the Philishave. Two years later. Phillips entered the market with their own shaver and they have since gone on to produce over 400 million electric razors under the Philishave brand. The courts 36 . In 1937 Remington produced the worlds first electric razor. undermining their right to trademark it as a brand feature. Remington launched a similar triangular threeheaded electric razor in 1995. Phillips immediately sued. a true innovation which still forms the core of their business today. Phillips had registered the design of the product but Remington challenged the action on the basis that registering a design such as the Philishave gave Phillips a monopoly and prevented competitors from producing products based on similar technology. Remington vs Phillips: a close shave Both the Remington and Phillips brands have long and proud histories in the electronic grooming market. claiming that the product infringed on their intellectual property and trademark of the design. The ruling was a landmark as it was the first time the principle of design trademarks had been tested and emphasises to what extent a product design can be protected. A Phillips press releases stated: ‘Since its first introduction some thirty years ago we have invested To Branding website © The Chartered Institute of Marketing 2003 continuously in the quality and the design of one of the icons of Phillips. Consumers recognise the form of our three headed Philishave as Philips and we would like to avoid confusion in the market’.5. Under the 1994 Trademarks act. The verdict was that Philips own advertising had emphasised the superiority of the design over that of their competitors and in doing so they had established that the design was fundamental to the way the product works. The case went through the courts for some seven years before the European Court of Justice ruled against Philips last June.
the design was not protected. whilst a particular design can be protected if it is widely associated with the brand. however. Remington. MANAGING AND DEVELOPING BRANDS HOME judged that. this is not the case if that design is fundamental to its operation. Intellectual property is protected if a rival is attempting to ‘pass off’ a product and confuse consumers but as Remington were employing the same technology but clearly marketing it under their own brand.5. and as Philips themselves had declared the design technologically rather than aesthetically superior. BACK To Branding website © The Chartered Institute of Marketing 2003 37 . the shape of a Coca-Cola bottle for example. have claiming the judgement as a victory that will clear the way for them to market their triple headed electric shavers throughout the UK and Europe. Philips have appealed against the verdict and the interpretation could yet be heard in domestic courts in individual territories.
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