Welcome To Global Brand Management

Welcome to
GLOBAL BRAND MANAGEMENT

• To-day
 Goals
– How we are going to work (syllabus)
– Some rules
 Part I : Investigating the Brand

« power »
PSU - 2006 - Global Brand Managem

ent - Alain Hutinel.
Me …
 Alain Hutinel
 Education
– ESSEC
– MBA Keller Graduate School of Business (Indiana
University)
 Experience
20 years in FMCG Marketing, Colgate Palmolive &
Quaker Oats
2 years MD of an IT Network Cy
15 years of Consulting and Teaching
Office : 260C
 Major interests Tu, W & Th.
…. Teaching internationally
Marketing Communications and Brand Management
503-725-3732
…. Discovering new ways of marketing
hutinel@pdx.edu

You…
 Special Topics/ Interest in Brands … Specific project
 Business actual situation ……..
> let’s talk and imagine
Your role :
to build your own brand model
so as to better anticipate what you think
will happen

Class materials
 Course Slides + on PSU/SBA - Faculty

and Staff - Alain Hutinel website &
course e-mail (to-morrow)
 CD-ROM
 Reference book : Lane Keller,
« Strategic Brand Management »
• Also : « Brand Portfolio Management »
by D.A. Aaker
 (some) Brand Management Websites
 www.pwcglobal.com/fr/fra PriceWaterhouse
 www.tns.com Taylor Nelson Sofres, Etudes, Panels, Piges ….
 www.esomar.nl ESOMAR Recherche MArketing
 www.brandweek.com US magazine
 www.brandchannel.com Interbrand “The” site on Branding.
 www.brandfinance.com
 www.milwardbrown.com Brand research and survey company
 www.future.sri.com Research International.
 www.intelliquest.com Millward Brown.Adverising
 www.accenture.com Accenture
 www.ipa.com UK Institute of Professional Advertisers
 www.prodimarques.com French Brand Association
 www.labelmark.com French consultant
 www.nomen.com French consultant for Brand Names search
 www.mckinseyquarterly.com McKinsey
 www.exmarketing.com Consultants, Bern Schmitt (Columbia U.)
 www.bec-institute.com HighCo brand Institute partly in English
 http://www.cobranding.com co-branding offers
 www.globalbrand.org

What will be evaluated
 Importance vs Completeness
 Capacity to judge and build own opinion
(managerial aptitudes)
 Capacity to anticipate and innovate (d°)
 Capacity to evaluate quality of marketing
activities (d°)

YOUR ROLES
AND RESPONSIBILITIES
1. To build your own brand model
2. To anticipate what you think
should happen
3. Individually, to do the required
homework and participate in
class debate
4. To actively contribute to group
work
Requirements and grading
 Readings as directed
 3 individual essays from readings
 3 individual cases (powerpoint format only)
 1 group brand audit & project

Typical Reading/Essay format
 The most important/new ideas/concepts retained by the writer(s)
 Critique/discussion on these ideas, on methodology, argumentation etc
….
 Give your opinion
 Say what might happen 5 to 10 years from now
 Provoque class debate
 How you will apply in your brand audit
 10 minutes = no more than 6/7 light slides

 All work in powerpoint format

Course main Topics
 Brand strategic role  Managing the Brand
 The Brand system Communicative scope
 Valuating the Brand  Managing Brand
 Brand Equity Architecture
 Brand portfolio Issues
 Brand Identity
 Cross-cultural Branding

TO-DAY
 Investigating,understanding
the Brand Importance to the
firm
 Defining the Brand
 The Brand System
 Defining the Brand roles
 Brand Power and Value

« Ultimately, Brands are all
about trust …
… the reason consumers flock to some brands
and ignore others is that behind the brand
stands an unspoken promise of value. That is
why brands are becoming even more
important drivers of growth. That is also why
Unilever wants Knorr, Skippy, Hellmann’s,
SlimFast and Ben & Jerry on its plate. »
Mukul Pandya, WSJ.
PSU - 2006 - Global Brand Managem 12
Key trends affecting brand
management … & marketing !
 Consumption, societal & cultural multi-
fragmentation & globalisition
 Less loyal / more « intelligent (?) » buyer
 Self value-building consumption
 Search for emotions
 Multiplication of offers & chanels
 Interactive marketing technologies
 Markets saturation
 Multiplication of touchpoints/contacts
 Loss of credibility of traditional media
contacts
From USP to HSP
 USP = Unique Selling Proposition
 ESP = Emotional Selling Proposition
 OSP = Organizational Selling Proposition
 BSP = Brand Selling Proposition
 MSP= Me Selling Proposition
 HSP =Holistic Selling Proposition
 (Martin Lindstrom)

A Brand builds its Own world
 And that is a fantastic power !

In this brand (!) new
world, What IS a Brand
and What DOES a Brand
do?
?
16
Think of Brands in your own life
 1 - Think of how you became aware of
them, why you bought them, why you
prefer them, how you feel about them ...
 2 - List them as they come to your mind
 3 - Chose one brand you are very
familiar with :
. What does this Brand do for you?
. What does it MEAN to you?
. How do you relate to it ? …
 4 – Main characteristics of a world
without Brands ?

“What is the best …”
 Who makes the best …. Automobile ?
 ………
 Do you own one ?
 Have you ever owned one ?
 Have you ever driven one ?
 Do you know anybody who owns one ?
 How do you know ….. It is the best ?

Brand is an experience
 A brand is essentially a container for a costumer’s
complete experience with the offer and the
company. (Sergio Zyman)

What is a Brand
(shortcut) ?
User
Culture Personality
Attributes Benefits Values

The Brand as an Open System.
Corporation Chanels, contacts
Economy …
… Relationships with
Competition customers
Organization’s .Scope Personality
associations .Attributes
Codes/Tone
Skills .Uses
(Core) Offer .Quality/
(Tangible Products &
Symbols
Origin
Services)
Value
.Functional User Imagery
Self-expressive
Benefits
benefits Name
Tribes
Cultures Emotional benefits
Groups … PSU - 2006 - Global Brand Managem
This Brand System
interacts AS ...
1) .. A SOCIO-ECONOMIC AGENT
2) .. A CORPORATE ASSET
3) .. A STRATEGIC MARKETING
TOOL
4) .. A COMMUNICATING &
SELLING AGENT
THE BRAND AS A SOCIO-ECONOMIC
AGENT
• PART OF EACH INDIVIDUAL’S AND SOCIETAL

GROUPS ’ SET OF REFERENCES
• A POWERFUL SOCIAL DRIVER
• A GLOBAL CIMENT
• A VALUE ADDING ECONOMIC AGENT

Coca Cola 2002.jpg

Brand Strategic Role
Brand
Equity
Consumer
Cash flow
Response
booster
Booster

THE BRAND AS A CORPORATE ASSET
• A PROTECTED PROPERTY (owner's right to use)
• BOOK VALUE, GOODWILL. ASSET that can be

sold and bought
• MARKETING « NON TANGIBLE » ASSET

precisely measurable and valuable (when
brand is on sale) :
STRENGTH , LEADERSHIP & EQUITY, ie
capacity to justify price.

Brand Asset Value
Source : K.L.Keller
BRAND EQUITY
as a Percent of Firm Tangible Assets
Industry Brand Equity

Apparel 61
Tobacco 46
Food products 37
Chemicals 34
Electric machinery 22
Transportation equip. 20
Primary metals 1
Stone, glass, and clay 0
Brand (Market) Performance
Valuation
 DDB Pricing Studies
 Landor Power Index
 Interbrand Valuation model
 Y&R Brandasset Valuator
 Intangible Value Valuator
 Sometimes stock market value

The Landor Power Index
 Power = strength  Most influencing

 2 synthetic factor : brand
measures perceived quality
Awareness  need time
Esteem
 «Share of Mind»
idea (cf. Share of
Market Share of
Voice, Share of
Requirements ....)
Interbrand BRAND VALUE
Attributes
Leadership (25%) Trend (10 %)
Market share, LT erformance,
Awareness, Projected performance,
Sensibility of Plans,
Positioning,
competition reactivity
Competitor Profile
Support (10 %)
Stability (15 %) Consistency of message
Longevity Coherence and spendings,
Consistency, Above/below the line Brand
brand Equity, risks franchise
Market (10 %) Protection (5%)

Trademark registration
What market, /registrability
Volatility size Market common law,
dynamics Barriers litigations/disputes
Internationality (25%)
Inte rbrand Ra nking a nd Ratio of Brand va lue to Firm Ma rke t Va lue
2002 2003 2004
1995 1999 2001 Interbra nd va lue SM %B
Ra nk $ bns Ra nk $ bns Ra nk $ bns Rank $ bns $ bns /SM RANK $bns RANK $bns
1 Coca -Cola 39 Coca-Cola84 Coca -Cola 69 Coca-Cola 70 138 51 Coca-Cola 71 Coca-Cola 67
2 Ma rlboro 39 Microsoft 57 Microsoft 65 Microsoft 64 276 23 Microsoft 65 Microsoft 61
3 IBM 17 IBM 44 IBM 53 IBM 51 138 37 IBM 52 IBM 54
4 Motorola 15 GE 34 GE 42 GE 41 309 13 GE 42 GE 44
5 HP 13 Ford 32 Nokia 35 Intel 31 185 17 Inte l 31 Inte l 33
6 Microsoft 12 Disney 32 Intel 35 Nokia 30 68 44 Nokia 29 Disney 27
7 Kodak 12 Inte l 30 Disne y 33 Disney 29 47 62 Disney 28 McDona ld's 25
8 Budweiser 11 McDonald's 26 Ford 30 McDona ld's 26 38 68 McDonalds 25 Nokia 24
9 Ke llogg's 11 AT&T 24 McDonald's 25 Ma rlboro 24 Marlboro 22 Toyota 23
10 Ne scafé 10 Ma rlboro 21 AT&T 23 Me rce de s 21 Mercede s 21 Marlboro 22
11 Intel 10 Nokia 21 Ma rlboro 22 Ford 20 32 63 Toyota 21 Mercedes 21
12 Gille tte 10 Me rce des 18 Me rcedes 22 Toyota 20 100 20 HP 20 HP 21
13 Pe psi 8 Ne sca fé 18 Citibank 19 Citibank 18 223 8 Citiba nk 19 Citiba nk 20
14 GE 7 HP 17 Toyota 19 HP 17 58 29 Ford 17 Amex 18
15 Levi's 7 Gille tte 16 HP 18 Ame x 16 57 28 Amex 17 Gillette 17
16 Frito-Lay 7 Kodak 15 Cisco 17 Cisco 16 116 14 Gillette 16 Cisco 16
17 Compa q 7 Amex 17 AT&T 16 43 37 Cisco 16 BMW 16
18 Bacardi 7 Gille tte 15 Honda 15 42 36 Honda 16 Honda 15
19 Campbells 7 Me rryll Lynch 15 Gille tte 15 38 39 BMW 15 Ford 14
20 Pampers 6 BMW 11 Sony 15 BMW 14 29 48 Sony 13 Sony 13
21 Honda 15 Sony 14 53 26 Nesca fe 12 Samsung 12
22 BMW 14 Ne sca fe 13 Budw e iser 12 pe psi 12
23 Ne scafé 13 Oracle 12 44 27 Pepsi 12 Nesca fe 12
24 Compa q 12 Budw e ise r 11 45 24 Oracle 11 Budw eiser 12
25 Ora cle 12 Me rrill Lynch 11 35 31 Samsung 11 Dell 12
26 Budw e iser 11 Morga n St. 11 50 22 Morgan St. 11 Merrill Lynch 11.5
27 Kodak 11 Compaq 10 Merrill lynch 11 Morgan St. 11.5
28 Me rck 10 pfize r 10 217 5 Pfizer 11 Oracle 11
Interb.
29 Nike 8 Nintendo 9 J.P. Morgan 10 72 14 Dell 10 Pfizer 10.6
30 Pfize r 9 Kodak 10 10 100 Merck 9 J.P. Morgan 10
31 Ga p 9 De ll 9 70 13 JPMorga n 9 Nike 9.3
32 De ll 8 Nintendo 9 20 45 nintendo 8 Merck 8.8
33 Golma n S. 8 Me rcx 9 130 7 Nike 8 HSBC 8.7
34 Nike 8 Sa msung 8 Koda k 8 SAP 8.3
35 VW 7 Nike 8 SAP 8 Canon 8.1
36 Ericsson 7 Ga p 7 13 54 Gap 8 ke llogg's 8
37 Apple 4 He inz 7 He inz 7 HSBC 8 Goldma n S. 8
38 Levi's 7 VW 7 21 33 Kellogg's 7 Gap 7.9
39 Ke llog's 7 Goldman S. 7 36 19 Canon 7 Sie me ns 7.5
40 MTV 7 Ke llog's 7 15 47 Heinz 7 Ikea 7.2
41 Ca non 7 Louis Vui. 7 26 27 Goldma n S. 7 HD 7.1
42 Sa msung 6 SAP 7 33 21 VW 7 Heinz 7
43 SAP 6 Ca non 7 34 21 Ikea 7 Apple 6.9
44 Ike a 4 Pe psi 6 Ike a 7 HD 7 Louis Vui. 6.6
45 Xe rox 6 Pe psi 6 92 7 Louis Vui. 7 UBS 6.5
46 Ike a 6 HD 6 16 38 MTV 6 Nintendo 6.5
47 Pizza Hut 6 MTV 6 L'Ore al 6 MTV 6.5
48 HD 6 Pizza Hut 6 Xerox 6 VW 6.4
49 Apple 5 KFC 5 KFC 6 L'Ore al 5.9
50 Gucci 5 Apple 5 Apple 6 Acce nture 5.8
51 KFC 5 Xe rox 5 34 #### Pizza Hut 5 Xerox 5.7
52 Ralph Lauren2 Gucci 5 24 #### Acce nture 5 W rigley's 5.4
53 Acce nture 5 Gucci 5 Kodak 5.2
MB 54
55
56
L'Orea l
Kle e nex
Sun
5
5
5
48
22
10
23
Kle ene x
W rigleys
Colga te
5
5
5
KFC
Pizza Hut
Colga te
5.1
5
5
57 W rigle y's 5 Avon 5 Kle enex 4.9
Y&R ’s « Brandasset Valuator » PowerGrid
Emerging Leadership
potential
Brand DREK DREK

Strength
New/unfocused Eroding Potential
DR EK D R EK
Brand Stature
Differenciation Relevance Esteem Knowledge

Monash University MBA - January
2002 - Prof. A. Hutinel 26

Heinz Ketchup - 2000

THE BRAND AS A KEY STRATEGIC
MARKETING TOOL
* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE

Adaptable to changing environments and technologies
* SUPPORT OF LONG-TERM TIES WITH PEOPLE
* ALLOWS LOWER COST for NEW ENTRIES
* UNIQUE SPOKESMAN TO ALL PUBLICS
* JUSTIFIES HIGHER PRICE & MARGINS

The Brand Value Chain
Value Stages Value Multipliers
 Marketing programs  Programs Quality
 Customer Mindset  Market Place &
 Market Performance Competition Conditions
 Shareholder Value  Investor Sentiment

The Leading Brands: 1925 and 1985
Product Leading Brand 1925 Current Position 1985
Bacon Swift Leader

Batteries Eveready Leader
Biscuits Nabisco Leader
Breakfast cereal Kellogg Leader
Canned fruit Del Monte Leader
Chewing gum Wrigley Leader
Chocolates Hershey No. 2
Flour Gold Medal Leader
Mint candies Life Savers Leader
Paint Sherwin-Williams Leader
Pipe tobacco Prince Albert Leader
Razors Gillette Leader
Sewing machines Singer Leader
Shirts Manhattan No. 5
Shortening Crisco Leader
Soap Ivory Leader
Soft drinks Coca-Cola Leader
Soup Campbell Leader
Tea Lipton Leader
Tires Goodyear
PSU - 2006 - Global Brand Managem Leader
Toothpaste Colgate
ent - Alain Hutinel. No. 2
B R A N D E Q U IT Y & M A R K E T IN G A S S E T S
R A T E O F L O Y A L T Y
C A P A C IT Y T O B U I L D IT
L E V E L A N D S C O P E O F
A W A R E N E S S
L E V E L & D IS T IN C T IV E N E S S
O F P E R C E IV E D Q U A L IT Y
M E A S U R E D S T R E N G T H O F
IM A G E A N D ID E N T IT Y
U N IQ U E N E S S O F P E R C E IV E D
P O S IT IO N N IN G
P R E F E R E N C E P O W E R
O F P E R C E IV E D B E N E F IT S

Building Brand Equity
Perceived Brand
Name Quality Preference
Associations
Awareness Other
Brand
Brand Brand Assets
Loyalty Equity
(Name & Value To Firm
• Helps Programs
Symbol) • Brand Loyalty
Value To Customer •Prices
• Info Processing •Brand Extensions
•Confidence in Buying •Trade Leverage
•Use Satisfaction •Competitive
ent - Alain Hutinel. Advantage
P & G - Mr Propre Mr Clean

THE BRAND AS A
COMMUNICATING
& SELLING AGENT
* A RELATIONSHIP ACTOR/BUILDER
* AN INFLUENCER
* IT GIVES MEANINGS TO
PRODUCTS/SERVICES ...
* ... AND A CREATOR OF « NEW » WORLDS

The best Performances last longest.
From Traditional Marketing
Functions of the Brand Name …
 Identification
Expresses the offer and is easily seen
 Practicality
Saves times/energy thru repeat
purchase & renewed satisfaction
 Guarantee of quality
 Has reputation

… to a powerful societal
system that … sells
… ie :
 exerts influences in the market place
 changes consumers’ wants and needs
 sets ideals and standards
 helps/facilitates choice
 provides purchase reassurance
 reduces after-choice dissonance
……

….
 gives meanings and identity to what we
use & buy
 helps us build our self-identity
 provides a symbolic language through
which we can express ourselves in
society and be recognized and
understood by others
 creates a longlasting relationship with
« consumers », at least with customers

So, a modern brand is
 A « persona » that overlays and
includes the physical products/services
 the sum of fundamental values and
attributes ascribed to it by people
 the entity that the consumers construct
from the products’ meanings, symbols
and images that they perceive as
defining the brand.

Evian Water brings health to all growing bodies
Evian, approved spring

PSU - 2006of youth
- Global for your body.
Brand Managem
US - Evian. l’Original. Approved by your body
as a source of youth.

Many different types of
brands ?
 B2B  Corporate
 B2C
 Commercial
 Web
 Trade  Non-business (?)
 Local – Countries
 Regional – Official bodies
 National – Charity org.
 International – Politics/Polticians
 Worlwide (meta) – …

Nestle Branding Tree
 7500 Local Brands
– Solis, Texicana, Rocky
 140 Regional Brands
– Contadina, Stouffers, Herta, Vittel
 45 Worldwide strategic Brands

– KitKat, Polo, Baci, After Eight, Coffee-Mate
 10 worldwide Corporate Brands
– Nestle, Carnation, Maggi, Buitoni, Perrier
Nestlé Branding Tree

SARA LEE BRANDS
 25,000 brands registered worldwide, 80% in
use.
 Sara Lee is eliminating R&D & Production to
focus on brand development
Sara Lee
Brand
GLOBAL
Hierarchy
REGINAL
LOCAL BRANDS
From Traditional to Experiential
Branding
From TO
 Brands as identifiers  Brands as experience
providers
 Names, logos, slogans
 Names, logos, slogans,
build awareness and events, customer
image contacts which build
sensory, affective,
creative relations and
ways of being (lifestyles)
with the brands


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Welcome to

GLOBAL BRAND MANAGEMENT

 Part I : Investigating the Brand

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

> let’s talk and imagine

PSU - 2006 - Global Brand Managem

 Course Slides + on PSU/SBA - Faculty

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

 How you will apply in your brand audit

 10 minutes = no more than 6/7 light slides

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

Attributes Benefits Values

• PART OF EACH INDIVIDUAL’S AND SOCIETAL

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

• BOOK VALUE, GOODWILL. ASSET that can be

• MARKETING « NON TANGIBLE » ASSET

PSU - 2006 - Global Brand Managem

Industry Brand Equity

PSU - 2006 - Global Brand Managem

 Power = strength  Most influencing

Market (10 %) Protection (5%)

Brand DREK DREK

Differenciation Relevance Esteem Knowledge

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE

* SUPPORT OF LONG-TERM TIES WITH PEOPLE

* ALLOWS LOWER COST for NEW ENTRIES

* UNIQUE SPOKESMAN TO ALL PUBLICS

* JUSTIFIES HIGHER PRICE & MARGINS

PSU - 2006 - Global Brand Managem

Bacon Swift Leader

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

* ... AND A CREATOR OF « NEW » WORLDS

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

Evian, approved spring

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

 45 Worldwide strategic Brands

PSU - 2006 - Global Brand Managem

PSU - 2006 - Global Brand Managem

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