SESSION 5 : LEVERAGING BRANDING POWER

PROGRAM: Executive Master in Business Education

COURSE: MARKETING MANAGEMENT
PROFESSOR: Frédéric Dalsace, Ph.D.
TERM: January 2020

1
 AGENDA

1. What are brands?

2. Brand Equity / brand power

3. Establishing a Strategic Brand Platform

4. Developing the right Brand Architecture

What is a Brand?

CONSULTENGI ®

TRIEC
What is a Brand?

A brand is a name that has taken a room of its own in the mind and life of the customers

A brand is a name with Power

A brand is a name which has taken a room of its own in
customers minds through imagery and associations

What comes to mind Imagery &

immediately after you Associations
evoke this brand?

Source : Anderson & Bower 1973, 1974, Bower 1981

 A brand is a name which has taken a room of its own in
customers minds through imagery and associations
unresponsive
cement
expensive

concrete

High-quality
products
Merger
between
Two firms

World-wide
leader
Presence
in 90
countries
Affordable housing

Easy to
deal Value for money
Mexican with
A brand is a name which has taken a room of its own in
customers minds through imagery and associations

A brand is a name with power

A brand is a name which has taken a room of its own in
customers minds through imagery and associations

Empty;
No association

Frederic’s brain
A brand is a name which has taken a room of its own in
customers minds through imagery and associations

Empty;
No association

Mohamed’s brain
 Branding is the price to pay to reduce the risk

Vs.

DEF 2
 What is the difference between a brand and a product /service?

BRAND PRODUCT / SERVICE

• Intangible • Tangible part

• Unique (“A”) • Can be copied
• Can be quickly outdated
• Long lasting / sustainable
What are the most valuable brands worldwide?
Brand Belief : Branding is only relevant for B2C firms
Branding matters both in B2B and B2C

Most Valuable Brand (2019; $b)

1 Apple 234
2 Google 168
3 Amazon 125
4 Microsoft 109 20 most valuable brands:
5
6
Coca-Cola
Samsung
63
61
- 6 are “pure” B2B players
7 Toyota 56 - 12 are B2B/B2C firms
8 Mercedes-Benz 51
9 Mc Donald’s 45 - 6 are “pure” B2C players
10 Disney 44
11 BMW 41
12 IBM 40
13 Intel 40
14 Facebook 40 DEF 3?
15 CISCO 36
16
17
Adidas
Louis Vuitton
32
32
A brand is a by-product of a
18 Oracle 26 successful innovation…!
19 GE 26
20 SAP 25
Only four of the ten most valuable Brands in 2000 are still in the list
2014 2015 2016 2017 2018 2019

Facebook Mercedes

McDonald’s
15

Mercedes Amazon DIsney

2014 2015 2016 2017 2018 2019

Delivering in 2020, Shaping Hexpol Future

 The DuPont Example

Many strong brands

 The DuPont Example

Ellen Kullman, former Chairman & CEO

“We believe in Brands.

The B2B World is characterized by numbing sameness, commoditized
feature wars and laundry list of product attributes.
Branding for us is the strategic way to get noticed and preferred and to
connect with our customers on many levels that build long term value.
Our Powerful Brands have become the customers’ “shorthand” for
making the best choice in a complex, risky and confusing market
place”
 AGENDA

1. What are brands?

2. Brand Equity / Brand Power

3. Establishing a Strategic Brand Platform

4. Developing the right Brand Architecture

 Brand equity (brand power) check: six criteria

Recognized

Source : Dauger 2013

 Brand equity (brand power) check: six criteria

Do you recognize these brands? Recognized

LEVEL 1 : THE BASIS

Source : Dauger 2013

Beware of over-used names! The case of Oryx in Qatar
 Brand equity check: six criteria

Recognized

LEVEL 2 : ATTITUDES
> Associations

- Tangible
- Intangible

Source : Dauger 2013

 Brand equity check: six criteria

Recognized

LEVEL 2 : ATTITUDES
> Associations Not substituable

Source : Dauger 2013

 Brand equity check: six criteria

Recognized

> Associations Not substituable

LEVEL 3 : BEHAVIORS

Creates demand

Source : Dauger 2013

 Brand equity check: six criteria

Recognized

> Associations Not substituable

LEVEL 3 : BEHAVIORS

Creates demand Build Loyalty

Source : Dauger 2013

 Brand equity check: six criteria

Recognized

> Associations Not substituable

LEVEL 3 : BEHAVIORS

Creates demand Build Loyalty

• Word of Mouth
Generates engagement • Advocacy

Source : Dauger 2013

Remember the Consumer Behavior ladder?
The brand accelerates the process!
 How strong is this brand?

Recognized

> Associations Not substituable

Creates demand Build Loyalty

Generates engagement

Source : Dauger 2013

 How strong is this brand?

Recognized

> Associations Not substituable

Creates demand Build Loyalty

Generates engagement

Source : Dauger 2013

 How strong is this brand?

Recognized

> Associations Not substituable

Creates demand Build Loyalty

Generates engagement

Source : Dauger 2013

 How strong is this brand?

Recognized

> Associations Not substituable

Creates demand Build Loyalty

Generates engagement

Source : Dauger 2013

 AGENDA

1. What are brands?

2. Brand Equity / Brand Power

3. Establishing a Strategic Brand Platform

4. Developing the right Brand Architecture

 Building a Brand Platform

Branding gives meaning to why the business exists and communicates its core value

Four key questions…

Kevlar Example
WHERE : determining the boundaries of the brand

WHERE…

…does the Brand play?

+ Where don’t
you want to
Which business segments? play?
What : Crafting the brand’s value proposition

What do I get as
a customer?
WHERE

WHAT…

How do I feel …functional and

as a customer? emotional benefits
does the Brand offer
to create desirability
& preference to the
target customers?
HOW : The style and tone can play an important role

WHERE

WHAT

HOW:…
…does the
Brand come
across?
WHY : Customer-centricity revisited

WHERE

WHAT

HOW

WHY…

…does the Brand exist:

what is its ultimate
purpose?
Construct Kevlar’s Brand Platform!

…does the Brand play? + Where

…functional and emotional don’t you
WHERE
benefits does the Brand offer Which business segments? want to play?
to create desirability & WHAT
preference to the target
customers? HOW

WHY…
What do I get as a customer?
…does the
How do I feel as a customer? Brand come
across?

…does the Brand exist:

what is its ultimate
purpose?
Kevlar Example
Kevlar Example
Determining the boundaries of the brand

WHERE…

…does the Brand play?

+ Where don’t
you want to
Which business segments? play?

whenever one needs a high strength-to-weight

ratio : armor, protection, sports…
Crafting the brand’s value proposition
What do I get as
a customer?
WHERE

WHAT…

How do I feel …functional and

as a customer? emotional benefits
does the Brand offer
to create desirability
& preference to the
target customers?

• Provides superior strength and durability even in most extreme

conditions of pressure, with less weight
• Helps keep people safe in most extreme situations
• “Allows heroes to be heroes”
The style and tone can play an important role

WHERE

WHAT

HOW:…
…does the
Brand come
across?

• Look & feel : Strong, fearless, in control, eyes on the future

• Operational values : close to the “battle-field”/ people first
Customer-centricity revisited

WHERE

WHAT

HOW

WHY…

…does the Brand exist:

what is its ultimate
purpose?

KEVLAR exists to create the invincibility which emboldens to act fearlessly.

Another Example : Porsche
 The platform evolves over time…

Rate of change are markedly different

WHERE

WHAT

HOW

+ Rate of Change - WHY

 AGENDA

1. What are brands?

2. Brand Equity / Brand Power

3. Establishing a Strategic Brand Platform

4. Developing the right Brand Architecture

Brand Architecture : three levels

Family/ CORPORATE 1
Segmen
t Brand BRAND

Family/
Segmen Family/
t Brand
Family/
Segmen 2
Segmen
t Brand
t Brand

“Product” brands
Brand Architecture : three possibilities

BRANDED HOUSE of
HYBRIDS
HOUSE BRANDS
• Single Master Brand • Primary Strategic Brand (group) • Umbrella Corporate Brand
• Master Brand subnames • Secondary Tactical Brands • Multiple complementary
Brands (same power)

Why would you one vs. the other : +/-?

Branded house

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 Branded house

Benefits and possible issues

• Maximize impact and strength of • Must have well articulated offering

Corporate Brand externally and
internally
• Must have a strong corporate culture
• Focus sales talks on the Value
Proposition • Must “invest” in corporate brand image
• Maximizes return on marketing & sales
investment
• Avoids unproductive internal conflicts
of interest
House of brands : FMCG sector

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 House of brands

Benefits and possible issues

Maximizes market coverage • Requires marketing discipline to

avoid confusion and unproductive
internal competition
Maximizes Brand dominance and
expertise in its segment
• Brand portfolio must be creating
value to the customer
Dilutes the risks of Brand failure
Hybrids

55
2015-07-07
 Hybrids

Benefits and possible issues

Retain the leverage of a Master Brand
while tactically enabling to cover non
compatible segments
Manage risks on a disruptive business
model
• Must have a clear leading “master” Brand
with best performance & service
• Must keep second brands “under control”
with clear intent

Isolate an exposed activity

Satisfy local need not compatible with

global positioning
Workshop : which Branding strategy would you recommend for
SASCAR within the Michelin Group for the coming years: 1a, 1b, 2 or 3?
2 “SASCAR
by Michelin”

BRANDED HOUSE of
HYBRIDS
HOUSE BRANDS
• Single Master Brand • Primary Strategic Brand (group) • Umbrella Corporate Brand
3 “Michelin • Master Brand subnames • Secondary Tactical Brands • Multiple complementary
Brands (same power)
Telematics” 1a: “SASCAR”
(or any other 1b: any other name
name associated
with Michelin)
Brand Architecture : the trend

BRANDED HOUSE of
HYBRIDS
HOUSE BRANDS
• Single Master Brand • Primary Strategic Brand (group) • Umbrella Corporate Brand
• Master Brand subnames • Secondary Tactical Brands • Multiple complementary
Brands (same power)
Last words…

1.Consistency is the name of the game

2.You need a STRONG brand champion

◦ Potentially, everyone working in the firm is a brand “derailer”
◦ Behind each strong brand, there is a strong brand Champion
◦ (S)He may not be terribly popular but (s)he plays a huge role!
 BRANDING RECAP

1. A brand exists in the MIND of the customers because of the network of association
that it creates

2. A brand is a name with POWER (accelerator / risk reducer)

3. Recognition is only the first step…a brand helps change attitudes and behaviors

4. Developing a brand platform : where / what /how /why questions

5. Firms manage their brands using three different types of architecture