Step Five | Positioning Your Brand for Success T Determining Determining dhe ight positioning for your brand isthe transi | Clin int between Phase Two, deertaining your BrandPictore nd fs | ines Phase Three, devo ping your Brand Asset Management sravegies (eee the illustration facing this page). ‘Astrong brand postion means the brand has a unique, rede Die, sustainable, and valued place in customers minds, fe reveles round a benefit shat helps your produet or service stand apart {rom the competition. Good positioning gives you the direenen Fequted to focus the organization and focus your starepic clon ‘brand's positioning she place in consumers nds that you want your brand to owt—the Dine) = Rami oeenmen Srdnoms 1 Rignoetentceme : : sen > urenteoaee ve : Welle, Gaurd one bet [fet frases f Walahie = Loe cram octane ie Mark 1 Gigs co ll neon > Feodean11D basse Ate Manco Nike = Performance Tncentand 3M = Innovation ‘These companies reap several benefits. First, they tend to be the leaders in their category, industry, or niche. Second, they se aly ean consistently and credibly leverage their strong brag nto ther areas of growth, Hallmark's cabranded relationship with ‘Microsoft, which allows card senders to design thee greeting card on line, has been a major success, Similaly, Nordstiom’s resent announced selling shoes on line itis one of few reales that c succeed in what appears t be a challenging category. ‘Third, atleast within the United States almost everyone knows ofthese companies. Ta purchase isto be made in ther respective categories, dese well positioned brands wl alvays make thet way tothe final decision set. ‘A good positioning isa credible promise of value delivered in ‘vay that distinguish your brand from others, Is isa concise state. ‘ment that summarizes your brand's commitment, o promise, to " ‘Your brand's positioning is also your company’s primary driver ofinternal and external groweh, aswell asthe determinant af key operational strategies that bring your positioning to life. ‘Three Components of Well-Constructed Positioning ‘A welterafted brand positioning hat dhree primary components 2. Adefintion ofthe business your companyisinor | The language of a welkerafted positioning usualy takes this genera form: 1 fuarget market), Brand X isthe (definiion of busines) that pro- vies you mith (ated point of dllerence/key benef) Posmome Youn Btw rnc It 2 mo mp sens ee ool Ss wee ene nt aa eet ae eres Boeri picincne ort ‘several questions need to be answered for each: 3 4 Target Segment Questions *+ Would the customers we sek recognize themselves as art of ths target markers + Js the target market both identifiable and reachable? ‘+ Ts t clear why this taget market would be interested in ‘ou point of ference? ‘+ 1Ewe have not served this target market before, why do ‘we want to serve them now? Definition of Business Questions” + Whatisthe category, industry, or busines we compet in? ‘+ Hove has tis changed over me? + Isthe business we are in interallprven or exteraly- sven? + Will tie marketplace value and believe our participation in this busines? Point of Difference Questions * Ie the key benefit important to our customer? + Cane deiter the Denes? + Can we ormthis point of difference overtime? + Tr this point of diference sustainable over our competition and their direction? + Regarding brand assoclations does our point of difference baave to do with either the middle ter f the Brand ‘Value Pyramid (the benefit level) or top ter ofthe Brand Value Pyramid (the value level)? Fortunately many of these question wll have been addressed when you defined your BrandPicture.12 Base Aver Manon et Sy Mine Ht ‘edit meena eyo deel spongy woes ene te aij toa slong mo thee putowtne TptNitet Tous ant ptm wal pla vo, ‘ins Denn: opal ithe ei fot Foire pdesyu ith nant fang ets ig ope pre oh pit od clase er vin tis paninghas aspen Fei ten, ‘ean cig ope hee pelisnal ca, nd ei al ae ‘en pls dad ar eh i Rd nd A positioning can be more aspirational than current to start with a long as plans ae in place to bring the positioning to life within lve to eighteen months. Beyond that period you sll have not "become your postioning, the marketplace wil Sato Jose faith in your ably to delver on your promise. as Su: Hei Anois Ofc, Ht sia oe ata alg ann ‘mote mines eal lon png wt ‘eplNiet—Thunan sous cots sud ew ipsa Het are be ap ee ett PoitfDiferen: roe bine als th ely ig ‘secon ih meal al, yesh rin ens ts, a le bed is pation ss ahumanrcosip obec pte aces” stages poms rare tare inal (mh essa wc pi “The Charles Schwab Story CChares Schwab apparently understands the fine ar of psitoing, For years Schwab built it reputation asthe lowest con brokerage enonmeYoun Bus ron Svoas 113 tat woul elp eases thle stock market ans seth ost ober ms charged higher commision and, few wb sccmed rather estening. Not Scab. In keenly Topi acount hve Deen excribed his ay “T tock rare eso, Charles Se the rokrage fr at alos to buy and sllstock ate loves cs” ee the 1908 progressed, however, the stock market exploded. Mules of sen veto ened ose who wete ead) enjoying the bl ie The neveane ease ened not ust about de Soc mae bucabout the ber nesonet options vale At These tine te latent ao expladed, bot a earing tool fndava place toby andl imestmens Sint van oppor repoton tae hee changes tek pr nawan opening to Seed could fife sa0 tne oc apeted ey and ale to dose Tia che ate 008 Sina psvoning statement ream he “To selauflent tockmarctund metal fd ive, Chas Sab the dr ‘Sun breleage hat pois ching you ed io mae See your om tvesment: ‘oe dence een poor aye slight, bat th impetonr er great for how Sha defined the Baines ityar bs bewitwoull compe thoy would oper st company Now the changes a sponge pone ‘Target Markt Ban 1990, Late 1900 ‘To elfafcient tock marker mia fond investors Schwa recognize the sit ia how investors were involving theanseves inthe nancial panning aed aesonent econ. I ho recognised tat many dew invertor ad entered the market, Shab alo gave credit tothe merous investors who had taken tupon themselves f grow ter orn poroio T ld pos Non sida the past you needed ut and we were there Belp Jou Isnew poston as, “Weare here fyouneed "Tiss ‘Me but perf iference- In addon, Sevab recognized114 Sao Auer towne ‘at mutual funds in the late 19006 are similar to bank accounts in "ie pas-—they are part of alan everyone’ investnent ponolia Defition of Businese Early 19901, (Charles Schwab i the brokerage frm Late 199% Charles Sciwab isthe coun eckerage fm — Schwab decided early to connect "brokerage fim" and “lowest ot together For is earget mark, thee eben bec sony ‘ous Butin the late 199s Schwab determined thtithad eae, Gonnect the terms to Relp redefine is bunnch and haere magic However, because Schwab was known ssa broke it couldn't Jems the sem behind. So Sch combined the concepts oe hace erage" and “low cont into an amorphous phous dneeern ‘brokerage. Note tha this connects the two terms But decent promise Tovestcost™ [Because Schvab recognized that discounts were going to be it ofthe pice of entry for nds decided woke te oe “eixcount brokerage,” even though he meaning of he sence nebulous (@icounting could mean | percent fe thar Mere {Lynch's commision o 10 percent ley for example) Sent oles nev that the market connected it brand wth brokering, so vas stil Okay to be considered the brokerage frm, Prin of Difference Ear 19805 Lat 19505 thatsllows yout bay that provides eerything you andiellwotkatthelowest _heedtotmunage Fore ‘Schwab's point of difference today is its ability to provide favestors with everything they could possibly need, from advice on ‘etic stocks to planning for resrement to helping investors man. age all their financial needs, Tis x powerful because allow for so much expansion and growth. owmcemeYoun sea ron Seca: US ‘This point of ditterence recognizes that investors need t9 com {tol teit own destiny. Iealso compliments investors by saying “you're good, we jum want to help make you better” This plays Alizee to an investors ego and seltesteem always important ‘hen buyers choose the brand that they want oe asvociated with, ‘Also, it implies that whenever you need Schia, Sehwab will be ‘here—that iis nstworthy. And itallowed Schnvab to evolve new ‘ays to delve servicrseuch a onthe Tne ‘as this repositioning worked? Recently, Mone magazine named Schwab the number one Internet discount brokerage frm, ahead ‘of Meri! Lmch and other salwars. And Schwab's tack price con- "inues to outstrip average market guns reveal Uines over Volvo's Positioning ‘Volvo wuts sein is brochures, other literature, and Web site as providing the best balance of rafety, durability and intelligent Solin in family cars. Asa result, Volvo's Brand Contract most ikely features sspulations, such as that Ie sets the andard for under- stated, practical ye; provides innovative safety features; and is Aesigned tobe highly functional and sturdy For most consumers, allthis shakes out to one simple message Volvo equal safety, That inal that mates, because that is who Volvo's, ‘So when Valvo stepped away from safety and repositioned itself asa high-performance automobile, a mentioned earlier, it con- fused everyone—employees, stakeholders, and expecially cu tomers. Market share dropped, sales shamped, and sone would say ‘Volvo soldfr far less than its value to Ford in 1999, ‘Volvo recently began a new ad campaign. One commercial shows a young couple inthe front set of thelr Vol ada screarn~ ing baby in the back. "Maybe we should start witha dog fist” ays the woman to the man. No doubt this is an attempt to win ounget customers, but I believe ialto mocks Volvo's safety postioning and 's therefore another assulton the brand, one by which longterm suecess may be traded for a potential shartterm gain. ‘The Guiding Principles of Brand Positioning ‘So how does one create a positioning? How should one use 2 posi- tloning? How do you know when to reposition your brand? AndU6 Asay Maco thow does an onganization keep &posiioning ave? These are the "ont comnon questions about brand positioning They are best answered by flowing five guiding prices (see the ho). 1. Alans positioning should be update every three to five yeas or as ten as needed fo pdate he companys Positioning sow drive all of an onganiaton's Brand | ApeeMsagemeat state sewer even a protest Senior management as to lea the charge lamplementing a brands peitoning Vauployees, not advertising agencies, bing brand postiontng toile strong brand positioning is customer diven and Btswith customer perceptions of the brand {Lets examine each of these prncipts, 1. Update Your Brand Positioning as Necessary The point ofthis i simple: take afresh look at your brand's post floning on a regular Dass to make sure iti ail relevant Your ‘anget tases, customer shift, market tends and dynes and ‘company goals and objectives An casy way to decide whether it is time to review or update your positioning isto look at your long-range ststegic plas process, Most plans have a life eyele of three to five years ad ate “updated as needed, annually This is the same mindset you should adopt wien considering updating or changing your postaning, recommend looking a five brand positioning sercens (sce Figure 8.1) that should help you determine ifyour positioning should be updated. Your positioning has to address euch sere notjust one or two. Let's ook at each sereen in more deta 7 A yeu Posen Your Beano sox Sucrass 7 Value: Does Our Target Market Value the Brand Positioning? Does this positioning motivate customers to choose our brand over competitive brands? Does i speak to the key needs of our customers? ‘Willituldmately help win the loyalty of customers and, whes delivered, keep them for life? + Will tallow us to chargea price premium? Will ithave value across segments, especially for our most prof. ible eustomess? Does it state a premise worth a purchase or atleast call to action? Does itallow our brand to cutacross multiple segments with virtually the same positioning? igure 5.1. The Five Principles of Etfective Positioning ~ | > Secticlnmmge | Somme eesbed “yes | Metco ae me Mase heat J, crtiy / aerate: petit the1B eo Aster tuna 2B. Unipuones: Dee the Brand’ Pastoning Exclude Conpettve Ofengsh ‘Does the market pereeive our poioning as somethin that only our brand and our company echo ge Jsourpostoning cal cere fom compete] osidonings o doesitcaey follow monerse ‘Ae wo ping to diferente our brand jt be erent ris rlya unique and valued ponte + When mentioning this pondoning to cutomer, without revealing yout bran, do other bands come ap on Gin ourpstonng bce emmann dec understood? e a ©. Gritty: ts Our Brana Psiioning Credible inthe Marketpace? ne *+ Wil his postioning be credible to our customers or tayget market based on what they know about our brand + What must be delivered to make our posioning credible? + Do customers view other brands as more credible in thelr Pasioning? + From an internal perspective, is thie positioning worth ‘he investment required, or should we go with te "next best? + Cane realisicaly deliver on the pastoning as promised? D. Sustainabiliy: Can We Oum This Brond Postion fora Long Time? ‘Will his positioning rematn vali over the next three to fie years How quickly might the competition copy i? Are we doing enough customer research to determine if ‘eds and wants will remain similar to what they are today? ‘What willie take to sustain this positioning internally and cexcernally? E Rit Does Ths Brand Posioning Ft Our Organization? + Willie support our overall comparate objectives? + Does ithelp us fil ourlongeange growth gap? * Does ithelp dive momentum? emo You Bron Sr 119 Vill itenhance our profitably? ‘+ Willouremployee ally around? (Cane mearure our succes byt ina constent and mesning- fal vay? + Docsit help foew our planning and dpto-day effors? All dhese questions represent an interview guide to ur with ‘your target market © determine which postioning statement you honld se. 2. Brand Posonng Shou Drie A BAM Strategies, Reyenes, and Profs Poaoning in eflec; our internal ditcton to execute sate fiesentermly inthe marttpiace Choosing what product and Sc osli os how born oar cane at ring ategy you shoud we and Now bes to communiate out rand un i postioning shuld be dvealy ned o your band posdoning es mi Tie. Ast iy fox octre wes rng pc i ac oe Took eal vst ore rw Book Barnes lead QL ease roto area Cir gh in Prins Pat of i Borden © Indidultocking Booky mase, Fan ace togo foracommaniy meet ecing pce” ane! CcromBooks ricesenine Boosts isos pricing inl ip ‘allshoppes amer ——Induallocng Book, mse, ibrar sting Nose Tragustgnberhg_ mule, pace nda! sesniom Undiduirvho Onineboos Peponaet tincmecacie snmae eplaesence 3120, bei Aer stud 0K x these positioning, afew obvious conclusions “ Borders ad Barnes & Noble have vsti port inerees but Borders is more tocaly oriented eed seen wehicees Bames & Noble is ibraryike, ndidually eerea ‘querer Ifyou g0 to the comer of comer of Diversey and Cathin Chicago on a SHY Bight you can sec both posiaonings instuee ae Suet Gt Doster patrons are more ike cojaehe rea, SECU nigh this their meedng pace Bese een ee vee may beth Friday nightsocal aiagiee ines Grown Books has only two pains of difeesnee he othe SeepPHcs 4nd location. There maybe importants ee ee sit at he bottom ofthe Brand Valug Brass ete ‘Bran Value Pyramid nase neat Ercable in te bookstore eatgory anyone aa BOE do offer the same discounts, ioe For several years, Amazon.co fly place to buy books aad music on nek a bellwether Internet stock and is one of he oa sellers to 50 percent olf list (hope that policy was stn pce youboughe dis book on ine. ‘To stay competitive and vale, Amazon.com iin the proces ofchanging ts posidoning and iroadeningt once obo line services, such as preneription medicine and aucasne ase {o what eBay's offering My gues that Amazon com wll sont its current reposidoning a the premier teil provider om the Teternet and wll continue to lnchide oferigs wall beyond books and music. This wil obviously have an impact onthe mesage Communicates to its target audience nt cl have to expat to ‘Sts thi new pesoniny Crown Bookats the on in real wouble Tos not ave mth chance to succeed because fs brea offerings narra di fount ure underenated, andi loon appa ony Strip mal shoppers Even there though, aerate Rodos a Barnes & Nobles are opening up, they wil eclipse these oe ‘comm Books fied for Chapter 1 i 1998, after enduring ta ‘Sect ya of les “eich god ae nes Ni e-Bach owed sigue pstoning they both have capa Connuncr® dea for malimeda rer Sod sherman soc ps cng paces and both ae scent theron righ Coke Fepthave both snived McDonald's and Burger ing Dou ice ‘ited Bames ie Nobiand Border il bik sure eve Intrerongo se though which becomes the number one glace Tiportany, our coton poning shoul case Reng operas buen Ke shoul ie you fudanes ts aceen goa ‘Fur erenue and profit generating stato and tatoua cy Jou remain relevant inte face ofa contnually chanong ee ting marta 3. Senior Management Must Lead the Charge ‘There ate countess stories about senor management's beiefin ‘rand positioning and how itactions and behaviors help vo show the onganizaton and other sukcholders that is level of comms ‘ments much more than ip service, Whether tis bill Mannoes Sgmanitment to spending 80 percent of his time in his Rec ok ‘Richard Branson's many public relations effors aimed at binging {he Viesin positioning to lf, senior management con made oe Davidson the suces ici todays ‘These ovo executives recognize tha the eiical path to post Product quality, braad image, employ1D naw Aver eoncrveve ‘The Harley comeback oye ek, ot not may now ow ior management most empl toncn nee ae, ‘ran pasdoing toe Fou aro nape ee ee corn be company. te sharhadet ich Soest ee, Shir commisnenssccounaliy and unesian a oa brand: Thin tr pronderan ined dapat ‘aking he Huey bande whem ith ase Has employecs although nota Hale tke ose brand erargcs, They ve te postoningand ate a tir ona daly bas, They we ine clothes pe ee oo Send th event A Harty sary plant see a ee Sty aly aris bono ile ying nd tea formula to Corals: cstomes and beer ont hee Shyer sp tos yeas get Harey Senior management coeds fost ing ith cue tomer, Mave dealers ar ented wih te ane lve Sroget tnd imporance a estomers And beetse macy employes oe Hae when talon went bake they anes gener ape Ciaton forthe need to beep the Harey pasion, studs and nergy atvaye going, Management awards Harley employee: Sonusts inked fo the waraaly performance of ir machines els to nancial performance In short Harley employees ar the brand as muchas the motel tis the pres deinidon ofa brand based og exon tat The teen 4.lmployees, Not Ad Agencies, Bring Positioning to life Once you arrive at the right brand positioning, it becomes sbsolutely eitical figure out how to bring that positioning to life. ‘While a posoning must be externally driven, your internal team has to buy into ic too, a8 they are the team tat wltimatelyrespon- sible for bringing the posioning to life. artiet Gold, director of Brand Asset Management for Nicor, «alls it'mobilixing the organization.” Others would calli the sin- gle most important thing you can do to maximize your potential {or sucess: ain your employees an how the brand positioning has an Impact on their dayo-day lives, [have seen organizations trans- form quickly once everyone inthe company "ge it" and “ives i.” rear Youn tuvmron sures 135 ‘The goal here isto have your employees become brand a= Dassadotand bring the brand image, contract, and positioning role ‘Whats important in masimiaing internal brand positioning? Simply remember your AUDIENCE. In this acronyin, each Teter stan for an important element to consider as you tain Your employees fa bring yur posoning to ie: arenes Bry member of your nteaal team shouldbe ble 9 ‘ate our band pstonng clear ‘Undesaning Your en soul fay nderstand hy the band ontoning was choven and how Saytovy jobs ae acted brie i Direction: Provide your tam wit specific xervice standasds or ‘chairs adop step know howto deliver on Se brand powtonng. Inspiron Sho your employes clips ofthe research 703 0m Floted peling tothe vite and importance of 00! Ne ‘rand pastoning—help tic ace de brand poionng sis seen through the eyes of our eatomers. Engagement The posoning has to Become relevant to eer pes on in your organization, from our front desk receptions 12 the CEO. You a have toa he ak and al employes mst Understand how ter and others jobs wil have to change. ‘Navurlnas Ihe ight people aren place, ne posoning wl oom becomes eaturl Fart of thee work fe (Often, ne toning provides you witha report card on whether you Fave thengit people In place to bring ito fe) cera Foublsh bonus ceria and MBO objectives, bras SCaenieing thats not measured not managed ‘acaton Tal your people o become brand ambasadors you wie ak ud asinine pononing ebm by every dla Jou vein ining ouremplnees "AUDIENCE isthe quickest way to maximize your succes poter- tial for implementing your brand's positioning. Not acting on it “most guarantees that your positioning will not come to ie.4 so Aur: Msn 5. Song Bran Postoing Is asiomerDrnen BS. eed to be customer driven has ben aed about aot ad terms of ceening criteria ut he teal eet “anding” on the righ cane “ arte atyour desire rus strengths and weaknency core comeeen cee ee goals, competitive directions, and the like, ah sain the Branca as been done we, then most of Gia ara ben coleced Waller ace oar fe to ten poidoning stem the matkelace One pagans sere and aera igh eae, cringe, o snare should be able wo devel Visual Care Pationing Statement Alernatioes 1. Navona neoork: With over 1,000 locations we ofthe sme ual care acros the nation, 2 Highest quality product: Our product are custom made and ‘poked ya fal, money-back return pic your econ ceried optometsiss who will fe you thorough explanations of test enleand meet ‘oun Comprehensive vison cae: We offer a total vain care sole ‘oe wid unlimited flowp vs for he ede ofthe prot nese. 6. eter sight For mece dan thir year we have helped people rediscover the igh they hae been mining, Best aclecdon: We ofr the wides selection ad varey of syle of any eyecare pronider. If we do nothave the syle you dete {in ourstore, weil find itfor you 2a of ne en oracle pcg eee es Maggie nem wttlGcapenme ete St nto yy rien coment Savrtenstnor puna oes ‘ipo cues be apoyo ba Badebaamboneg esis eel ope ape nn ptt tc op ni vag aitbe te gar tease Fag el ewes tree SPS ONGONE eat amas acon Positioning on a Shoestring Money i ell in implementing any program, but when comes ‘nplencntng penny gece aoa et Poonten Mary companies develop bran’ postonng oa shoesing ‘ugetSomehie a conple of undergraduate ho are tpg {fa credit by workings sementer sta company and ee back on what they have learned These companioc ce heart ‘omer service or telemarketing department to conduct the research over the phone : nother company, aan ‘The points that ail this can you think though erategial Sommary Xyou don't ake conto of your poioning and erate ityour seh oer wil dot foryou de fctomand chen nerin oe, be completed on a small budget iyand witha chy Game of sd,Foemonme You Rusa ron Sica 127 i interests, For years, the U.S. Postal Service allowed late night : comedians to make fan of i because of the tials and tiation ‘many Americans have had with the Post Office at some point. Until the U.S. Postal Service embarked on its own brand cast lp in 097s busines was defined and psioned by ever ‘Your positioning maybe the single mos important activity you conduetin developing and activating your Brand Avset Manage- pony Example tes lt, protein alt ‘ty predic am tl tint cae eg Recommend peienng i ining: Visual Ca people =| problem and son th donee storey Roowltgatie 1 Boy a repec __| Fore 52. Areiving st Fiat Poss [fermaz cae|p ssahing Uf “iran (p Step Sie | Extending Your Brand Ascincated in Step One, one ofthe best ways to ill your company’s Srancil growth fp no cxtend your brand by Secloping new product Sad seracte, There inno beter vay to fel growth cove Dut the compeston, and grow your Brandictare then by extend Ing the equityofyour and Ge the iaseation onthe ning page) SGetisiheinherest whi a brand wt iene He The eston brand extensions are powerful thatthe new product or serce comes wt iaant cea sn ‘vein endorsement asthe brand has already been accepted 4d proven inde markeplace by an existing product on sess, ‘Besiid Posiivatng as We Key to: Bead Extesio ‘What's new here is not the concept of biand extendibilfy it's the ‘mindset that connects the extension direcly back t your brand positioning, Recal fom the previous chapter thats poaloning ‘has three components: target market, defniion of ne busines, the brand competesin, anda point of diference o benefit tht Isunigue, credible, valued, sustainable, and fits withthe team eh the company. Most brand extensions build of of one oc more of these components Extending Your Target Market Gillete’s Sensor for women lev Wed the definition ofthe busl- ‘ness that Gillete is in andthe Gilete brand bencit ofthe ‘clean shave" to dramatically extend its target market hom only mento13) io Ante Mauer all adults who shave. Levi's Dockers leveraged its “comfort and uyable” benefit io dramatically extend its target market snd {lefinion ofthe Busines it wai (selling jess), Marriott's Couryard by Marriott x another example ofthis t leveraged the definition ofthe busines Marriot wes ts (hotly and the benefit (comfort and qualip) to reach a target market Set ould not necessarily afford to stay ata regular Merlot or may have just thought of Martius a family vaeation hotel istead oF buinessperson'shotel. Sports larrated's Sports luted for Race and Cosmopoltan's CamoGIRL are also great examples of extend, ‘nga brand's arget market Extending the Definition of Your Business Crayola ine of markers, paints, and clay ost kel targeted to the sme eustomers a its crayon, The new line leverages Ceayela point of difference, creative," but extends the definition ofthe busines, ‘With IBM Conslhing BM fundamentally changed the definition ofthe busines twas in from “technology bated to “schnology- ‘sed solutions.” Extending Your Point of Difference ‘With Go Gurt Yogurt (basically yogurt in a tube), one af the top, new prodicts of 1998, General Mills Yopiit leveraged its target zarket and definition of its business, The new product helped extend Yoplait's benefit within its positioning: the same great yogurt a more convenient package, Each time Intel comes outwith faster chip or Microsoft into- dacesa new version of Windows, they extend the benefits of theit brands. Similarly, Blockbuster's new benefit of “guaranteed videos {in stock" and FedEx's new drop-of time for packages of midnight in some locations are examples of building and extending on the defined point af diference. ‘Extending the Entire Positioning ‘Several recent new products and services have attempted to extend ® brand's entire posoning. This usually accurs when a company Emmone yore 11 's trying wo enter anew mazket forthe fst ime and basa bran ‘whose strengths are recognized beyond the curent target mare, ‘md beyond the current definition ofthe positioning, For instance, Caterpillar accersfulyintsoduced Caterpillar Footwear by extending fe reputaton and brand srength fom the Iheay equipment market Although the consiuctonayle boot that (Caterpillar offers doesnot direc address an unmet mazket need, Itdoes help tol niche for wendy, rugged footwear This sort of extension may be considered risky, but done wel allows 3 com- pany to diverly its branded products and services and take 8 tne Portfolio approach to managing ts brand, ‘The Gap has done this in a more subtie way with Baby Gap. Tt thas extended its brand from the young adult market and now 9%, in effet that The Gap now reaches ont to parents with babies and toddlers berause its now in the business of providing clothing to ‘ustomers from birth through adulthood, Its leveraging is tebe ‘ation for sylish, high-quality clothes with line thats baby sae snd reasonably priced ‘Baby Gap wll probably thrive because it full the marketplace {esire for moderately priced, shyish baby clothing. In adaition, ‘The Gap's recent adverusements (euch a8 Gap Swing and Khakis Rock) positively influence Baby Gap, as many customers shop at ‘both stores, Both Caterpillar and The Gap conducted extensive customer research to make sure that these extensions helped to build the brand, not diminish strength, ‘When Should You Extend Your Brand? Brandbase exténsions can obviously havea direct impact on bran loyalty and brand value. A good rule of thumb comes from Bob Passkoff, president of Brand Keys an increase in customer loyalty ‘an increase the lfeime profits from a customer by as much as 100 percent. Thus, strategically leveraging your brand into smart brand extensions can ultimately help drive loyalty and the overall value efyour brand Soccessfully extending your brand is tied to Keeping current ‘qstomers happy, bringing new customers nto the brand fem, and -ceping the brand fresh. The goal ofall brand-based extensions1 mse er amen ‘aheat ncreae the nea wae an rg the ra ‘her word tonomate frm + pout wrength Dew ane You ‘rand franchise we mpport weak ideas or psc Fach brand ‘ena should nid weet tthe oes od en nah fc Chega hand ge a snr ‘hey Brand Extension Questions Four qurons are crcal sa pics w deciding wheter tog 1 Inde ertemson consent with your Brand Vision? 2 Toes the extention help upsld and semen your Brand Pewe! $3 he exsenmon consent ih your oneal omtoning? ‘tbe extention fa wl bef major or minor setback for your bean Let look at ech of hee quensons indiually 1s the Etcnsion Consists with Your Brand Vista? Determining the match of your brand extension with yout brand von epeia or te Sage how the exten elec the need prers pp and what rae plan your overall dewiopment anegy The ate rang mow of Howard Schult, the gen bend ‘Searouchs wacens tt eievas bere Ifyou buy its the European ‘aperence—the speci ela that one experiences vhen bap, 1 Cup of called do you si Veieve that Sarbucha a et space can reflect that sme experienie I that» good, cree ‘wand emenacn that Conaitent with Sarasin won theory that becauae ofthe cred bnsiy Seareace (rnen tro caoraet base atytuing wath the Seats a ame eH i a sacces. Apparent, Satake will ec cnsage va semen som the Web trtngh Sarin partner with rurvent Internet Starch wl tare he eBay ats Amato ier though 18 own magasine, Jt aid wil ttn each rammeme Your Bae 185 vss cyberahops Tel be a ‘tmegiciiension turma out "The goa for brand entendibity has to be aimed at adding. satus to the band she hughes level, heping current cartes PPr. and providing more ch renting to watch bow this atone Help Fi Yur Pima Crh Gap ‘Sep One diaced the Brand Vat and i inkages io corporate seategy In plan forthe future, ws need a seapaot of wee {your brand today and where you wat. go tomorrow Wess ‘ould have «ancl growth gap that dictates what perecttage ‘ofthe growth atenbutable tothe beand should come from new ‘roduc and erces new channel. rice imenten, mergers asd ‘eguiatons and pare strengihenmng ot ne Seana Band exenditty expectations say range foes small ese: ‘mental growth to dramas growth lhe bunsem ane the Beacd Bran Este Role fetea acti he me teh Tate emda se a toattene ane ae wate tetrad tsi ee ae reece inet Denson eco Folate teppei renee ager eases Sana ee ee ae ee Se SS Se ea ee nat cre tneehs ent sate ne apmcnecee te ao ae ee Sree oe ae eee eae whe book Manag Nw Pada, Tose Recast about sew1 ase Aner Mower rand etn expen rear extensions that offer new expos relate tthe thee component of te banea a {mtn Thee extensions (many of which were dvued obec) Erased nt dsamatialy gromog the busines, Exponee sacy tier benefits that hve not been received by the mater ns ot sifer an opporsnyto get into a segment of the market a ie Sd ay not hve tapped before S.C Joinion Wass ntodton of Glade Candles helped o dramatically grow he Gade brand si freshener busses sna ‘riped SCI tecee fs bane from odor mating to prods that help enkance s home environment, Tis exteston tapped Sunmes need for atively inexpensive candle at altoual {bod and dmg stores. Tecate onthe suengih ofthe lade ‘rand and the channele of drtsbation Grade owned: Isso ‘sped Glade inerease penetration inthe underiveraged ale siafctrement Inlooking fr ways to expand its brand beyond tational mar ‘ets ie Bauer's management sought a beeen consumer need, is strong brand, and a new channel to leverage. Brad lLanen, brand manager for Ede Baver, ys, "A sccessful xa ple of channel expansion is the Eddie Baver carseat. Where are {hey sold? Toys 1’ Us and Target—not places we normally corre Inte with our afuent consumer However, after doing research, we sealzed that our consumer does go to thote places for infant weas, cluldren’s wea, and other children’s products; This was a good ft thatallowed us to reach our consumers in a new ouet™ au Sud: Lge ‘opin od mato shar and he intestate wl, ag be 1.3 pray hl malar flap lcs an cher staat ts den king ew wast ow a eed Is evel band. Tein gn rid hae ie thie une mare, verging ‘nets high thr pane payed ona peal op Ho et hcpany he sicko wha! is ral ial sbut—thoebegh- col pati Bes gy has ppd the ilo endhigh blog mat nae ‘tenable hcmgny wo acklede maces leer sg dando ak i siding ck beste. Lap “Me soos aw Leos wth embed cmp chip adight ses, mene vou se 1S ‘Top alo stop al compute wih pono pecs ang etn. Tepe abr cen ne lowed npn capa dfs dial cle pod vide een int ptr ‘Teg "egy" taconin incr a. Te cap hes ‘ented mae comply sh gs pacers (arent ls expanded ie tbe ape pene el een ne miso pas of a ey peel thik lpn bene pf ue f Sa Dego (an pans ez. ‘Theo stat eo eer a en sng pti poten in mc he th xp and eqs an enon ok, Does the Exteasion Uphold and Strengthen Your BrandPicture? David Friedman, vce president of marketing at US. Cellular, says “tie boundaries for good extensions are fundamentally those ‘whieh the customer deems to be acceptable. That sa real chal lenge. The bottom line is that brand building, in pare, resides in the mind of the customers, as do the opportsnities for growth, Figure out the intesecons of your brand's boundaries and those ‘opportuises for growth and you wil scceed” ‘Your BrandPictare should have taught you alot about your brand. From the image it curentiy ha othe contract full to the ways in which customers thiek about your brand compared to the competition, the BrandPicture helps you define where your brand is today and where it can go tomorrow. This fecond ex- tendiily question helps you guarantee that your Brander it not only upheld bu strengthened overtime. ase Sty Ralph Len onary ase tra hams na ates Raph Lan hs Ade onions pees em fac nei a ‘aren coninostn ine btn te ie nd sng ome ‘wad in tallng le congo bund tegen ska nape. Boy ca Fal Laue psy be int orton’ nd Hee Dept semi bra nt? Danger nce se dead toe ‘rani ll he a lpg fore asl ber rope ‘ter1% tea Ane Mens ee NS ne nee tote ve Smom oe & weston amen " seistee tome teen labore —— a gate pan a em ‘oe one age cae a ate wanes eae Oars ss Cato a ast pan ap on oe noe i a ema gu ‘servi ha es 6a no ee ‘erm You Maa 15) yh a wc 2h lc cb ea be prt "erp pons ee ce sete ten ete mele eg pane 1s the Bxtension Coesistent with Your Overall Positioning? Inconatency mith your Brand Vision, Contract, and image are forma of rand abuse. How do you know if there is inconaiseney ah at your price poant, your target sme, yo your ‘tribution, and your overall image as Feral af extehing your brand ito 4 new areas conmatent he BOOW hg snd matorcyien! Or it incomamtent lhe Clores offering Inte, ‘ey devergen) + Does this extension ‘rand sande for + Does it confuse current customers I 50, are you Snowgh ow cuomers to makeup tee en + Wp are cannibaliing your curren toned ‘novation. ar you a least creasing tne pent Whe Gatese did wih va Mach 3 nee eee ‘si wo oF detract fromm wae the parent © Gate mateeplace ceary dtreaaate tha ananashe from ‘Saet vous pacees Content Eanes RSE can ts meerinn noecenttemig, and te Seca ny pte soaps anne pg te Bey 8 top of Be arand vas Pence ‘atcally dominate ito she 19808 andfocus on Mac PCs, Dell ex almost never recovered, But like someon, varalotatsake Slowiy Cough and col sna “Itmadesente to people. Then we went wo Ne te eay. We ime increasingly bold and broad daime ander ene how accepting people were: Itbeeame cleat’ crane eat ight leverageble brand asset Then we inuodince Deere asanghtime pain reliever Although ems fint maskeen ne ye ‘let, PM took on an entirely diferent role The Hlesol meee the product gave consvmers the confidence wks sueepiean ecame a fuge busines because milions of seewesoet Re icans finaly started waking something to help them ll aleeg ta fact we ut launched a new medicine called Simply Slep ore te Makers of Tylenol It isa nightime sleep aid witout the pa ei aualities, And it carries the asrocited brand equiye From the ake of enol FM, A black & Decker powerfal brand and forthe and matte manufac lc Deseo wae bes atoalysuecced and accomplish projects they nay hive 1 been able toon ther own, Atte highest ordce, te Blk & = see muons 18 ee Sin mie a or The pmthe Brand Valve Pyne” heb pew ae conten wht oreeare schon mar ania Hah woud cay ESB, trmmernen tee centages ne aay one ar aaiioenrt pes SUE Tht pod rr atned ese ome SE scott Sete nee wa came Sing fen Sage re ee, eee kde Decker, ident. The company has ule itsbrand atte ok Dbatteropersted tole fal ah a their corded counter- aru, further driving is brand's flue, ‘ies of innovations wil hel fuel sls of Black & Decker's Pine chargeable produes foo suchas lava mowers geese ers and is newest produc, the cordless power sere aihitogan extended wage relative to what they ered beta tool market in North ‘wally untouchable on both continents, Black & Deckers eng recent quarterly results saw revenues increase by 11 pescent anal ‘operating profits by 24 percent, Inconsistent Ecensons ‘in mid-1999, Merril Lynch announced plans to enter the online {okerage industry inorder to capitalize onthe huge market poten. tial represented by customers buying and selling tock on line,a nue Ar awcou Se eircom eeteen ‘did not talk at all about the possible challenges caused by shifting Soautaiaarecomeb area Sieaticnereramecn Concecerae cath aca! Ecco eee eae el Lyd s onrng seco rik that could permanenty cman ome stehtpeen epntenan ecco Cidecrten cakee mcs oe pacino ceuatentameererar Soccernet cea wcrc tig i on oc mebrseagreweeimr mite Eooiatoade tires Ecgrioetis eat ee gna ene theca rgainmeragme ony inion doctor Petco eivcdacters enna EemoneYOURBUNG KL Ifthe Extension Fails, Will It Be @ Major or Minor Sethack? Will the extension further endear a customer to your brand, havea ‘neutral effet, or have a negasive effet that pulls a disloyalty tigger? Consider DisneyQuest, discussed earlier. Its an attempt to expansively extend the Disney brand, But what happens ifthe brand extension fails, che benefits not appreciated or valued, and DisneyQuest is a bomb? This important question has to be addressed thro ugh the customer model and through a process | wil discus shorty chat focuses om the extension's short and long- term benefit. DimeyQuestis getting mixed reviews. One Chicago newspaper ‘ite said "It's the place where you pay $16 for tinee hone of sanding in line, intern ‘brand won't be felt for a few years, aS th oedema for Din BaroDney isaring ‘pero ay Ya of oor partons Poe eas : fect those same ‘Parents! desire to goto Disneyland one day? : you xia the band You have to be ery eat ines MoM Fateemerteceet ia mewn ser Monet or esample, Arm & Hammer Dental Care Baking Soda Gum vere anal dssibution in Febraar 198. This followed er ven ie aot based launches over the at five years, inclding (0 oy detergent, dishwashing detergent, toothpaste, deodorant, daund fp church & Dwight's Arm and Hammer brand exten- an ica appeat to center on leveraging the good naine and Sin gn of Arm & Hammer and baking soda’ benefit of “lean semen in evry conceivable category where i might fi. fener three problems with this baking soda isa commod- Peete te succesful leaders in each category Arm & Hammer and the benefits easily replicable. For example, Crest immediately came out with toothpastes containing thin effec, took Arm & Harmer out ofthe pictare. tach time and neither di Dial or Sure in the in competes, snd Golgate i ‘aking soda ane ‘Tide did not waste mi deodorant category ‘The ate ofthe gum is likely to be the same. Wrigley’s or Trident sail probably come out with a bakingoda ingredient soon jst to see ann & Hammer outof the game. The bottom lines that Arm (Ctlammer has a sustainable advantage in baking soda as a baking ingredient, aa freshener in the refrigerator, and through af eae tatensions The rest are examples of what call "brand abu ‘What could have been a strategy that made perfect sense for ‘Arm & Hammer, allowed for erediible extensions, and sustainable ver time? Cobranding. If Arm & Hammer followed the Intel model of becoming a critical part (or ingredient) of other manus frewrers' products, we could be talking about a massive success story Imagine Crest with Arm & Hammer baking soda—that would bbe powerful cobranded product. Mercedes, however, may be committing the ultimate brand- extension sin, Its C280 sedan is listed at $80,450, isin the same ‘Showroom as higherpriced models, and may be taking up the bulk ‘of Mercedes advertising energy today. In addition, new advertise: ments from Nissan Altima, comparing the «wo in terms of perfor” ‘mance luxury, options, and the like, may be a real embarrassment fot Mercedes because Nissan is demonstrating that itis compare: Bie on all fronts. The only difference is that the Altima i priced at $15,000, Another Nissan ad shows the Altima towing a new Bower >oat, implying that you can have both for the price of the C250. vr How could Mercedes have uaveled ofr down the path fom competing with Jars and BN tothe Alta and the onda Grit I Sndoubtedly began with good intensons. Mercedes ‘wanted toate younger comers or hose i es disposable income toa cs of ethan years pas they would RaYe Never ‘been able to om, The benefis are wofld: open Yousef UP C02 ‘ew seginen ou dt not have aces to before and hope © gal 2 iene customer ho wil cominve to fade up. Unfortunately, Mercedes hasa lott work tn do to show that ean play 0 the $30,000 and 5000 categories a the same time ‘The biggest concern for Mercedes should be whether is Jnsulg the $0,000 ear buyer who bought the huxry and pre tige of owning a Mercedes and now shares the road with others ‘no bought a ercstes for half he price. Ancther problem i that Tome eostomers wil not want be asocated wth the lowes pelced Mercedes on the market, Temay shout out to ther, Could’ alford he expensive one” How to Pick the Right Brand Extensions: AFour-Step Process very company needs to understand what its brand does and does, not stand for before it tres to extend itin an uncharted direction that may not ft with the needs of the marketplace. A good process helps raise an organization's chances for success from Tuck (one out often successes) to high probability (seven out of ten successes). ‘A.good process helps identify and avoid extension ideas that, although meeting a consumer need, are too far a stretch for the rand. For example, Owens Corning offering home installation, Preis insulaton fine is definitely a value-added offering, butis it credible? “This fourstep process merges two powerful assets—knowledge ofconsumer needs (Grom the customer model) and the brand Jhage and brand contract—to ensure that any new product con- MEpe that moves forward has already accounted fr is fit with the frend and the impact it may have on it (see Table 6.1) ——————— lllA nae Ars Mosca “Tahle6.1. The RAM Procen: Head Start on the New Products Procese ire paar Step four Concept development sd boinc sal on elon Vision and the inividuat components ofthe BranaPictare provide information at ad defines rand extension praete for cee NP [ABrand Vision helps drive your brand extension goals and ‘seats rlen ‘The Persona and Contract help to determine brand strengths and weakens | Tee fore mer Mode! outines need, wants ant pombe areat | The Customer Model oudines perceptions of yo rand The Customer Mode! helps define the entenscn Youndaries for the brand The Brand Poutioning helps to proside an overall seen for brand extensors ‘Step One: Develop a Brand Extension Strategy A brand extension strategy defines the role play in helping to fill wa compan rategic roles that brand extensions w th gap, the Sua the screening permwmo Your Bean 145 ine which categorie and new product, i mae arctive to pursue under the See cain svarey hast bein total alignment with he line arcuate in Phase One ofthe Bran Asset Man- ae cas The nancial growth gap discussed in Stsp One, TURE Giitctne sce of te geomth goal that needs to be cried oiat senses are available fo file The strategy {hositatom you to mannize your brand extension potential By “elaping nem posuct and venices based on the suengts of sur brand itiouta strategy, you ae ames acking way © Mech your brand vith states you should be able to develop ‘Natanced portoli of requsite tnd expansive brand extensions ieee Figure.) criteria that help deter Figure 6.1. Forms of Brand Extension =—: =, ——— ). et \ HG <2),a, is sso ner MSN our ban extension suategy should inde dese kart igor bd cen ers had cee fered ge roles (av dtcssed earlier), and op bem ext son Aion for snd commitment o extending the agement’ paca rynabieture should help apnareae a eset band in the shen where theta can ig he an slong iment nd wit ompeson, management wl Be bet focus all eae errs on anteasing the al fhe brad In 820 tml el the eta cs earch ors adeedile brand-building effort. sup To: Explore Problem and Opportunity Areas “oe tey heres to not focus on dens, ut rater on further defir Ta algo opporteniies. At his sage, gather abd org ine Pomch and market inteligence, This information then fen generaon and concept development for Te 0 ran eeah ve co seven strategically focused, brand-based yaa that il eve asa bas for generating eatin Sep Three Pres mpl, Burges King's Big Kids Meal reflects this needs sderthendos process. Burger King realized that McDonald's rene Meats target ile kids perfecdy and dat the re" Bapey Mesto adults and teenagers who want to think of her rea ce adults, This eaves an in-between group that has neve any specifically targeted: juniorhigh kids (eleven to fourtece years al) Baree King tok the simplest but most elective route of 2 geting nage market segment it epackaged curren’ £01 Saree hopper xteen-ounce drink, and ge Hi) > a artued fecly to that segment. Dung SCvlOP Shh oberg several questions were mos ikely asked: 0c 1 Sonne enpany prom a meal tats fused o> Oe Jnr high ean? Dees tappear that anyone wl AEC OT i i erent, nen ecoenalta gen SO faeries and no, And yes, Burger King's Big, Kids Meal as een a stellar success. pomope vou tive U7 Stop Three: Generate Brand-Based New Product Ideas ‘Ta je ot Sep Thre ao generat neg ons 0, hens be pened nk entified in Step Two. The emphasis here should be on generat: Sngasmary es sete tl pena roles rd Slay needs ent hy consumers ring Se epIO=077 ‘crchconducedin Ste Bea "dea generation seasons should identify mutple solutions £0" problems and satisfy unmet consumer needs. These sessions are not ‘traditional open brainstorming exercises. Rather, idea generation ae eee ced mente ong see cOmUT Sack generated proses ee ns uae anya eel Bonded ete 1 foe pont an he umn stat A aoe ayo a etned marke nen anda Sih ie hand, nde he des have been generate tine to move one ere of ees are consume eH de screening To es hedge ome ens SY and brand seen Tso sri roles an consume! ner OE a i of ih he Bandicre developed inane 9 peas coming suep hour concep evelopment 8 Sera Se peed al ajo eee ee acre aeady dered shee ed caret, cncnea Bl Ter ee am tn rarer anes (erty ree an on oh emi PhS ri came rien NAD i Nena ceil oases a oracone mate NN jpired us to hel E rofit growth gap and to fur “Mendis an Cae directed us to Took into wo specific market < otoe SOHO) sn medi a rites ld ws er 1 of Step Three wil move forward 10 “1 business planning. These ip silts even and P18 Mean Auer Aten ete sever protitem fvean that they could use Sncluding the follwing eng muy sat company © Lack of ottice aupport. HPPA to be larger han it really is + Litstea bundger Each of these need areas rep grservice opportunity areas ret For GBT, this eventually tele Internet Call Manager, which wee ents dozens of distinct product ¥teleconnnunications compare © successful introduction af the Aleseribed in Step Four Sep Four: Develop Brand-Base Concepts anl conduc Base eee omen ducting business analjls on those come down to the top two oF three thet A welkcrafted concepts putes intended use, and primary benefits percened by corneas [addresses how the product might be potiioned agunat eee tition and defines the primary purchaser This dee eee int for ensuring thatthe new product concept does ndecd and enhance the value ofthe brand Summary Succesfully extending your brand should help you dive your brand’ overall strength and values ae ongae de eae rationed a the beginning ofthe chapteg are elder Figure 6.2. The Busines Case: Pulling Together All Aspects of Product Development na pores bane esa might eat ot cheney? | eee eels td apa Toque ates, ‘ows gto magn aed prot ons mighebe epee ‘Waa development igh beached ee citi pate | oma | Cet ecm deri eect enh cme? Wate te iad u set pel fork cibecompe| Wc ateatre ledloger might ‘weed150. Bn Asser Manor sen comet mong SSSA age been help fill your ‘will only help to increase the inten oe sem isn nT eange Sptbntl nt cobceasaeunmor ee dioica ted cece ttt tet lgb-growth and roply extending their brands‘Step Seven | Communicating Your | Brand’s Positioning Brand based communications (see the ilusraion on she 998 Bethe and ar developing ad imemensing te =! Bake ae egies char lp bring your brand's postschi® atom ee ye igh lx of strategies wil ANE YO poten for Brand succes, es that you bs “uecenul randaeed communications a8 ‘he omer foundations in place, a sbown in | Corporate Saategy —# Brand Vision —* | BrandPicture + Brand Positioning —* ‘Brut Based Communications Steg) * “The last tage shown here—a brand-hased communications snruegy isthe bis for succesfully communicating your bras posdoning to your arget market, ‘Managing the Brand Is Not Just Managing Comancestions * “The mow dificalt mindset shit for managers to suhe—regaes ofindusiy site of company, oF expect msa ed pended tw exteute neti Brand Ave Manage xy 0 any companies al cre ae ce rec inrzal manage hou eer ot Sec ‘peanding- this chapter, communications in Brand Asse sy beyond adrersing. I fata good band er eo sea cee lin ae - nein 1 Sicreon eet marketing and corporate sponsorships Sista oman 1 Iason (pl Cie cme) sn dng (asogoes, Internet, mala, ma) 1 nteral employee communications of purchase, coupons, rach of theve will be discussed in more detail later in the taper "Keother crucial shiftin dhe mindset is to start viewing dollars iron brand-baved communications as investment, not cost pen Pac sa gre example; it recently announced that twas rising these to make sure that its agency's advertsing campaign hte the mark P&G is requiring its agencies to reduce thei fees and ‘ner in a rsksharing arrangement based direc on the effec: ‘tena ef hie recommended campaign in increasing sales. Becoming an AUTHOR on companis focus on communications execution but pay oo lise tention ois gals and objectives, The AUTHOR model, ‘hich dees thea ages of impact commnications sould lv on our tget customer, prowdes an effective approach {elg bended communiatonsfoyous Brand Vaso, Bet care aa! band posoning. I enables you tobe like any Zutor=in control ofall your communications effors, The six Sage are: f youn newn'sesmonme 155 Avatenes Fist, you mut create awareness for your Brand Understanding: Once you have achieved awarenes, YOU Communications efore should lead your target madience 'o deat understand what your brand stands for—that im pertoning Thiak Once your customer understands who you are and | ‘wn your unique points of dis ference are, concentrate 08 ‘enerating til an inducing customers 9 Uy your brand Hippines After a wil of your brand, dhe customer had & 00d experience and ha a very favorable impression of YOU rane. Oni one This the most important tage of all—getting the ‘stomer to think only about your brand in your category. This 's the pasion of power, wih allows for premium pricing and ‘edible and expinsive extensions: Tals leyalty postion is now your tere. Referal or recommendation: The ukimate siga of brand sauisaeon is when eistomers are wing to put their own reputation on the line by referring your brand ta pet. ‘The AUTHOR model is expecially useful for keeping the big picture in mind ata mes. Five Principles for Successful Brand-Based Communications ‘There ar five guiding principles that will help you implement longterm brand baved communications strategy: 1. Use all communication suategies to help achieve your corpo- rate srategy and brand vision 2, Letyour BrandPicture and brand positioning largely deter- imine the right communications strategy to execute 5. Ure an integrated marketing communications strategy to get ‘maximum return from all dollar investmerit.4. Haecite ya comnnnicatne strategy well crn the orga ehucation, and mise dete bminutkcaionn "hese pun ipes along with dhe AUTHOR move should help ny «mp ha ats to anne it ra com to have both dhe eight Mayo thea and the right expectation iil are ernbaced bya few recent winners ‘tthe Ameren Marketing Association's ESF aan The EXP ste one of adevting’s highest honors and yeneally yo hand in hhand witha company or brand alieving a afer seaegic goal slong wth weil execited advetising Here are foe bie! HE "sale. with she challenge tate and fesule seated fore ie Sy Ray ta: Dafoe Ray a "he call ay Hanae ts hen eo ‘owls em sii, wo mec alt ey et ‘Thay Sa a analy nina chee ‘sues eng potty anya te el eck on igs, ler) an cag act peeing dtp lathe wneud edi ‘wana esto pastas, ne, wna ange thes a-nation ad para gap, (e Suy AME “Th Wate Driving Macia” ‘chal 1957 dese abe ae wuld acl "amb co alion nihgpedomane ayaa ad "or edt use, hes ph cnet Mes, a, snd ad mary. ‘Mh syd cases Bri wasp, it ality sll oases tegen viban nee cemetary. ‘he ous "Una ein aie” peg sie BS snaps ste tri matt Caer et! omelette ies and ben vy ald cc |G naan ube coe psn nthe mao toe at nets nara “Stat Farm Undtands Life™ The cll ene edgar part sede ar le. — The egy Se Pan’ ast charge se alles pt ot, rng ain csr a tpt aig SF ee aes oe ‘nm wd eer evga ly a Sale Far Ine ines od mal The as gn na nase eb (ae Sa Tat com: “Adon” ‘Then: gle ver tan ha Mat a fe real mee ‘Mest scampi my ba el, Theta Bee and pig int tee. Tease fara wale eh eal anaes al bn cate. al stole vi rn ah ae "aca lig al ‘he a capa pl in 2500 br, 1 pat of i} ora yelp HowletePackard concepusalizes and implements bran¢t-based communications relying heavily on the five guiding principles HP's “ven” campaign, for example, was a corporate-wide, Hold com ‘munications shift that was developed to move the compat ras ftom an overreliance on specitic products and into the hrvariet technology market. HP's ads and Communications were changed from generic product ads toads showing how HIP products lp ‘usiomers make connections with these around thers ‘The crt communications shift for HP has bee fom func onal or produetbsed focus oa focus oa product” probes sel ing capabilites and the consequences for people. fn thantngt form this example of HPs ansformation sgmopuce all ples (and willbe discussed throughout ie chen) Let'stook now at each guiding principle in deca, 1. Use all Communication Strategies to Achieve Your Corporat Sirategy and Brand Vision Ais point, you have set your corporate vision, ident ‘erporate goal, and dented the potental impanr ied1:8. myo Auer Monon can have on this vision, Senior management has reached conser Strom the company’s direction, and everyone undersance ig hesterm and longterm brand goals The Brand Vision sould frve helped to set the right nancial and sratepie goals for the brand And you have at realistic expectations fer the tipiag of then your Brand-based communications wil sar to ane an Impact on ales "eh our liens we ty to set realistic timing expectations: Resonsunded Brand Communication” Tinting or pact Fint 18 months Build awareness, recall, and understanding Month 18-month 86 Start to see result of communication etfs Month 37-month 48 Loyalty builcand wort-ofmouth spreads ‘Ofcourse, the amount of me needed to produce resuts can vary with the suenges ofthe Brand, the type a ie of the ooo any its rallable resources the nature ofthe market snd many ber fore. Priceline com reached 7 percent uncided awareness Widhina yearasa direc result of ts mace adertxng budget ‘The point here isto st reasonable and realise expectations and constantly emind yourself that your Brand Vision dictating ‘rate for three to ve years, not oe or ta, 2, Your BrandPicure and Brand Positioning Help Determine the Right Communications Strategy ‘The BrandPictute play significant soe in shaping brand-based ‘communications, The brand image defines the socitions ard fhe persona that the marketplace uses to identify a brand, Together he Brand Vision and BrandPce show how age @ gap exis between where management wanta the brand to be and where It eally is. Ths Bit of “reality therapy” provides 8 Rest Elimpse of realism into what le eeded to netualize your brand- se communications efforts. Your brand poston Helps you aspire toa future poston tha wil help ou bridge this gap. cronnecamervomnave'sroemonme 15) AcHovietePacard for example, managers looked atthe §3P between corporate trategy and His brand vision. Army Kel ‘orkivide consumer brand lanager state “The Hewete Packard ‘rand nad traditionally been a verytrong brand A decentralized ‘xpanination and communications strategy, however, had allowed {he brand to become fragmented inthe minds of our customers “ie ha to fce the realy hat te brand wae undersized 3nd ‘reaching is potendal” Hewitt Packard was tying to fll the gap between how ie was ereeved and what ls brand vison said should be tomorrow. “Because we wanted HP tobe more relevant ad dilfercrtl= ed in the market" continued Keim, "we needed to understand nat asocations our eutomers had withthe brand. Thy told vs {hey believed HP fo be very scent, technieal, and professional. They told us we had superior quality and reliably, and that they ‘mot often sociated ws with printers, olan one of ov largest ad most vasble product categories, Als, they tds they Believed we had become somewhat quicy slow, and pusive. Our feat had tobe to make the brand more selevan o ov target ma Ketand also overcome the perecved limitations in innowaton and pproachatilig, "We mw this sa unique opportunity to go back {© our root HP isa company with temendot History. Started by ‘0 young men in a garage in 1859, HP was the orginal sare. Te ‘We company driven by engineers with an obteation for building gual products, In beings startup, the company had defined ‘tet through inventive thinking, sen not only tough Une prod ‘eta they developed but through the management philosophy they practiced as well Iwata company tht worked collabora. thel and moved quickly. We were extremely proud of our back [round and recognized the need to make the brand’ heritage ‘iran ont gan The word inven capticed the spirit ofthis reposiionin and became the company’ new brand waternent. By Mending the associations customers currently had withthe brand, with the ‘usibvtes that had originally defined the brand we were able to Communicate HP a newly energize, astmoving, and foci company. “In lon, we knew that wid brand statemenc ke “invent we would haveto reinforee this promise though all our communication,anticial color, favors oF wheat, dairy or soy additoes, we side exfect on tome women ‘contract proinise through dhe would include the Folloigge Caters tothe special needs of women Hetps a woman fel ar healiy aad se good about Berne 32d good about herself * Includes al he vsamine «worn needs ona dally bass with an explanavon of what cc de " 1s sae: Nas no preservatives or anal ingredients + Is backed by Knowledgeable cinployes i Oe to bel explain the vires of the was available a any ONC sare 4, Use an Integrated Marketing Communications Strategy na lotwritten recently about the virtues of int. Tay ee pee communicatons (MCS). Here's sua Integrated Marketing Communications: Principles + Ensure chat all communications deliver a consistent message Tinking back to the brand and communications strate,ies + Appointan IMC direcior and obsain support from the CEO, ‘Tham everyone involved In communications to ink IMC, {Greate muliedia campaigns instead of one based on a Single instrument. + ‘Aha look for opportunites ta blend various communica: ons toalsin order to deliver more sles per dolla than bsing one instrament slone ‘Tack ll promotional expenditures by product, promotional tools, sage of product fe eycle, and abverved effect as» ‘benchmark for improving future use of these tools (Greate a philosophy ofthe capabilites and cost effectiveness, ‘ofeach commusication too similar matters—and to lik a ms goal and Seren bic communications vehicles, each with pros and are availabe to you. You ce S ene snot simply pick and choose among Mamcach should be leveraged to help brine weer Denne MaRS ENC rategy to life, These vention ween ea + Advertising sling mes ‘create an mage, fa + Pula 624 intended o bul awareness, eventually lead to. wale rPald, third-party endorsement of one’si | 162 Braxo Asser Manacenent «Bening cpr pp Se peer ere ee «Reel nr etrgeg ingahs porcine dein, These may inca cea poset nen tr on » occ tun cna ioe Setcauidicbaen chang, ysl sana Saha carne Aerts ‘ever isthe most ie and dynaic form of communica Regthay audience. Bary Kraut, president of ashe ety Ray explains: “In advertising, ow goals tour fee na DB, AEs Mey succes foran advertising agency Wesco o the best job possible of uncoves ing relevant brand facts and ‘hen tuning those facts into positive felingy Paid endorsements mer to by contests} et, mai ‘rranncexme Your Basa Posmowne 163 “Finally, one c : shouts matren ein, "When I'm ayake, I'm not thinking iecugs MAU when en heey sredcartm og men sponding en apart Mace ere ony one TogDietrm tcenmans eet wl ven good night Key insight There The ‘Serta Moment.’ We ‘ 18.8 brand to life, Some of my vHlveraging tactics in advering include then, sel Jordan for Gatorade; and Wendy fom the Snapple ads Sonia Susbucts’ menmaidiie figure (Cae ra at Compag os and the be and god that Con seh Kth ea Thing (Col) Were Bet (Wendy) Songs: Jun, Jve and Wail bythe Brian Se Khakis; Coca-Cola's 1% Lite to Thank er Orchestra for Gap, Seger’ Liked Rack for Chewy ‘the World to Sing: Bob164 eww aver Mevacnutn A creative bret isthe should cutie several epeciien fen gives tothe agency. Positioning Competitors positionin Goals and objectives = ‘Target audience Message Greauve screens Practical considerations Badger 1s addition, the create brief should emphasize a numberof tangible issues about the aversings What i tmportant eo castomers and wha driver hem oa porte ‘What does the competition look like? ‘What should tie ade accomplish? Who do they anger What benefit should be emphasized? What kinds of ads are acceptable an align with the brand? ‘What form i tin? ‘What wil this cost? [Glicnts should waite the creative brief for several reasons. It forces ‘Ghezn to thoroughly think through what they are uying achieve, iret an idea what pe of agency should be sought and prowdes Svindieaton of whether te budget appropriate considering Rear ere crying to achieve. Also the brief serves as a good SRR D ge the scverting is effective once thas been exe: dae ee escen the cient to detersine beforehand how much ae ag rece may need to be done i the positioning is not ‘Too often the agency t stays bee the scenes. Tiss WEaniead the agency to overe sakes control of the brief and de client “Jencrally a eeipe for cater beonse josie ereanne execulion® conoaeroYOrr BRAND'S FOUN 165 nmovative or creative or daring way to bring looking for the most iy the expense of the bigger picture, 1 the averting tie at the exPpave been tational dined (age pane to how agencies Ha ‘tend 1 show 18 Thncap gees ope A te te a of 2 se bee For example, he Str rg oe get er Bk role ‘accomplish with the brand. You need to figure out how to align ‘our geal forthe brand with the goals of your sales reps to aceoee lsh winvwinsituation”increasing sles and building Coe value St your brand, As Jack Welch, legendary president of General Elecrie, once ‘Sid: "Get everyone to agree to the same reality" Ifyou bul this {hen you have to get your salespeople invoived in building sa developing your BrandPieture. Have them take part tae devel ‘mento the BrandPicture and play an active role in reaching Highland Park Line "go, involved in building 2 bran help execute? pines éastomer Knowled mer model, eel Maeury outade of Chie ‘Srategy that the sales repel ‘averaging your sales ope tobulld mar butane penma ‘specially ari ete a i a— ee Aner MOC ring aoe: puch tra de oval prea sr ergo iough in choosing one rad oer aoe 2 i help ou wndesand ys pee i [ones "Trade par bear ihefce nt ove you moc and most key you are hot dese em olen They want to make money and wil sly go where r hey exert, st discusted in the next chapter, in she money is. Th {he Mine amount of power inthe market and thus direc afect scespiy to achieve your gots yon at asco include becoming intimate with your trade “oor om Feet them involved in the promotion you are ing te parc Ct involved in the design ad he details and iet saan oe ein a my suc hat bot of you win. Brokers and a hing ta wl neens foot ac Anew product, ee eee pe promotion drave tafe Use the word new? at move closer to geting the trade to help you cep your overall Brand Astet Management goals and objectives, Conner Promotions: Not Gaeraly Effective for Balding a Brand rotons is probably the vehicle that companies sraethost especially with respect to coupons and discounts ‘Those usp help draw traffic, But fused too often they condition Tutomert to wat forthe coupon or the next big sale. ‘Wien MeDonald's left "food, folks and Fun" several ears 350, deserted a campaign that was directly Linked to what the brand ‘ood for, Over the next decade, MeDonald’s fumbled around t= ing find full again after targeting adults, trying to compete om tnd the like, The more price promotions Burger King or ‘Wendy's offered, the more likely that McDonald's woutd follow suit Soon enough, everything was priced at 99 cents, profs plum meted, and McDonald's stock and brand image shrank. “The reaions are obvious. Recall from Step Three that McDon e's for yeare rested on top of the Brand Value Pyramid Iwas ‘ssoited with powerful values—farily and kids and fin and trust [bathe company seemed to forget what it had taken so any Yessy to accomplish and started competing on the lowest common denominator ofthe Brand Value Pyramid: cost 1m Consumer prom ree, cowanecarmevounzausersosmons 171 est nan age when de consumes wang 0 neg of virtually everything. Priceline.com (the Internet travel Agen further desing that mindset home asi tells customers to pick their destination, determine how much they are will {o spend, and submit that offer If oe ofr i accepted, the Com” sumer is beter off This ultimately a business founded 2 2 contumer promotion. Not, for example, that Pricline.com's tame cou be ealled by twenp ve milion adults just ix month after the company vas inches ‘This why you have to be very specie about the goals and objectives you sre ting to achiewe witha consumer promoton. Effective consumer promotions drive eufhe, enhance awaTenes, ierese tal and bud the brand. Thar means gaining and Keep” ing new customers and enhancing the brand’ overall image, ‘ther thn fecusag om pce. Direct Marketing: Coty but Efctioe Direct marketing is by far the most explosive marketing comms nications vehicle today. Sales through the Internet and through Catalogue shopping recently topped $500 billion. Companies like Fingerhut are solely in the business of marketing and selling through catalogues and the Internet "Ls time to shop, more opdons, more women in the workplace, and more computers in the home makes tis a critical communt ‘ations tool Ttscems lke yeserdar sha buying trough the Land's End or LL. Bean eatalogue was ll the rage. twas unique, diffe tent cool 2nd very satathing. Today these extaloguers are no longer “Gnigue Outs popular Because you can buy the same sor of prod- cw trough Amavon.com, eTovs, oF countess other Web retatier. ‘Wests company looks at building i brand chrough direct marketing, dhe gens ae similar to tose in consumer promotions. Faaneene sins haste help a company achieve its intended goal fuchar 3 percent penetration ad 1 percent sales) and increase uc and image. Direct marketing also has t0 the brand’ overall Titomship between the customer and the direct help build ping vehicle ie (wuch as the eatalogue oF the Internet) tahip & built, then diect marketing has had a "When a relation pos fet on te bd When arelaonship i not but or theing: name, address, income shopping preference, ikes id nuiabers (ithe custome level (poten ly) or tales munbens sd ilies, other people nate ts ‘sending gits), and wre lke, ota a ee glee har snd Rp ne Sihihel utomer tae uated poate realy ong cuore was boys ys eeareene soso ecg hansen donde tcc "otahdnpa beeen ng 20a eeu opping canons pater et tor nd aon oppo pan he nen eon ‘mero ngecaey eae ah sing dicount phangse ee ey hom Seta Sechelt wartung veh fen tore apn eee ‘Sige aps mean cars RRR areaneage ieee erie noe “ic a OE Cy cnc rn Sarcasm cag tae ieee continents Rule etsurceraton, ees cane sear ee cerane Serer etal te peter fearnig remtingnrogure date conauenwi e eae ase eee ae ronal ofgevodi nce remade chr a pore tet ole ee Se TS and emp A ee ee Severino epnigen covmanvesme YOUR BaNa's Poon. 175 - imteuvomana ei Ee rea an endo sereabjarie _ sorties LR Seg lea gga otra Be inte inte 2 eee oa eid mn ES anew ote a cots Ecler fon pac ~ Riosloys igs otging bean Ainocon atta Finally, Amazon.com collects so much valuable information ‘on its subscribers that renting the lst isa viable busines inc own right 4. Becute Your Communications Strategy ‘Across the Organization Once your three year BAM strategy has been set at discused in Step One, you should develop a corresponding threeyear game plan. Remember the Brand Vision defines goals and objets 2 three: to Sve year ime frame, as does the AUTHOR model ese dy Pata Winder Fula Winder te narber to US, wor mardi agi bak Ale yeas aps Pela nteqlandn rons bat {hab seca neni al on pe {ie denn wa Han Ms iis cer ve pad ef eg as, sora ser mag mage ety bast sate ee ofp thelr Thy ke tose tet Senet bce wl cel werd ammo a ‘och clas i and aon dada car undetanghades bane bait awe the 3 oe spo tae Magee rhe stow te mee we barat crest stan ow ssn Hoe owe Ne ah pa cao Aw cow echoes me doera te asc Jaw doer noes te fe ma ene ks Legit Nanoha eS egies Pea nent Rey «SS de iorgs oe peal a ean she = Sern eyeew ogee + ook nat wd eae th fede oh Hear sbsgcurnaetganl eng es te fen hw oe reagan hae At ‘seat eet ae ig each Oe a woul ete eg ai ac a tbe agree see Bah eae hs ke rn enter ann hei at at a mat Roth owl message ala sll hese habe tesa won mages att te ponig.ome Aa Ra AE toon nai, meaning you st ow ei wating ‘vent rg mare you a psig ad wha conics hikes villlp es mania och ‘epustig Pelitaeen (si was, ae, fing asta) wast 8 igh atypical ing. Onse ‘the sting was age th et ston was eee te "vanish eg epi to ‘elastin hat eye th ass ‘leet mater ewe a tag ple Mao ‘nde nm asin stato sae thal was Hues Talloring ares the way lee eso et ee inland xernallasea * Pyle pt aaa tie itr 14 ee : COREE we al ones Me eae en cea YAR Wek ce ~ cen ce Tagen tate wre ae tan Sauget stmt tea eer a socmencten iments wns “igertna eee en enancant eect yen Secs {Restate war atagigys sel ah y exw tee nh bl ae ‘sn eS mm el eae Sh ‘rete much att ape penal tone nines alee | Tiersen Paw ig eb ets re ay aloe ea! ee sol a alesse ma rte rant ry ang gtd hay ea sm tot pring eps tee ling ect hg ae ‘fie Thresher a dil pt Renita. lol an gale te ene he ees io i par a law es ep wi he tte to at 99 fer ane176 nna Ass Mann 1 art Danas io ev yn sta “he main a ‘ape Reirson {i eo ec ou ae ino pwr nl pt ie wowace oer penal ans prea ea Tatyana by Tsou tae er ae ens nn ter anny Se ch ah peee atone teh dma he meen a Tew iho tn rk sepa Theres paca hr le shea unload for eaten ew nee pot ‘sin an cue, ere asa gat pita pepe Tee ‘eat ha enn an aga wa aise. oot Listen arate ead bn di sethaeny actin tinting acne ase Sad: Yahoo! ‘hos neat communktns ater foremost paths be real ut marapaet has fs on apace ta we ‘osc wt be abo! tran al ula ane tb ead Tea Some ft communis ais aps tae te + Sunterone sue famanns: word of mouth cr We by aber whee posle Ge eles sins pt i nasa ‘ete to eho! the x boas, dba as Hw sg pec a, muse, nd ot esti ands ‘Reply aw compas with much are tts ch OC ma en Je) “beget te armel pocts an seis 1 bend here sprog od as wi sand CD 1 ae aetsng ste a Yat! conser baste rand eqnnwnsco Your Beas Pearsons: 17] 1d Metrics sayotvement, Education, 5. Greate Internal Ione _p Hever, Simply sated, one Se ave ung fo achiese with uh wat at Fak the overall suc. Tait ay more about se ar re ate wi every emery comumuieations YOU Pe an cca tno et Or pes wt i abou our rand frm ut 986 OFM Shecenedmao eempoy net hp oa tig, now how do you execute it? We got lou of rave a new position ‘drive out executional strate: furor enon or eve ot nce sad pee eens ie a yng dors ah ete anime sumer, we bil peiped as coer dat we Be to ook at Geb nee naenee ar” einer ne ET rear nite OE den se a ours ee sqhigtnk Honicey sea conte stmiomnest fod Sar iho Sn Sa onsen cman se jor bee i i a ne ogal ee erin te es aekons nance ile abbr Pe ld oe See goes dram al es nec tot eve re in on rE eag sa Se ee ee eae coeate 1 sie 7.1. Communication Plan for Service Firm gts __Rechend Freer) Grats Dining SME ‘+The goalin our brand.» All ads most bea am agmonentse communi Fan "prt ny campaign to pose Jyeoca ih es ih tequeney being brand image Riese OUP Ako) «Now a eguie eal goal ‘emotional appa con + Mimi reach longer pot hi ee oe ate + Quay mar break ‘Reasonsforhlgh "through the ene ‘equency new brand pesive cues and NeW CAMPAIBE, «Pan to have ce : Jowavateney eter" ONO have hs of eompeting [Reneral a service informa, skenspecite ay ad featonal ads ten lneereats high Sommary ‘Branding isnot just about communica ‘he right brandbased communications ‘and positioning to life and ulate ‘Aset Management goals and object tions but about developing. strategy to help bring your ly reach your overall Brand ives. The primary goal ofall lated, the approach you ake ‘oul be ity sightorvana 7 etimne your communication goals (such ato help dive sis), determine your target audience: ana eee Sh Bow electve way of reaching that tages sense wee smut ach at avarenesyidentandhag na ee eth. Band aed communications shoal he ce relationship with ts customers slacdosing the ale : serommome 179 coc Yorn a's Be 72. Communication Plan for Service Firm B __ Aerie auaear Der ing Aeris Plc Rats Di. 6S eg gcc gy “Riss saaaniog sea a Scala, Tees cmmaer | = : 7 stewie’ hares — a = —_ Foon stan “priya “teens Sete,“ higonarre murtice Sherer eho Seanicasons) ‘+ Fulfill mission, specific expertise “Withcodpetlon, °Balld arenes” eas Cee eo Se sre ger — = me : eee = $$ inernennteren,Leveraging Your Brand to | terrae ‘Channel Influence no nmune ns? Te maneg td econ ean Ti ee ce eon oak poaee Sere aesieuecees Ce a upel indeap ab hi oe hcp le nel ag mane ek sen al ee ces ite eae ere san ae nag Ser ncn Seeheree ewy s pore See vata etertante de tore eee Se tcc eerie eg ce rer peste ag lea peeps pce tant oar dt Sarg erp yeeros Seepnaietca cyt cemeteries eee ere eee hone fimtrtonpintetenerred ee ct one ee a ee steerer2 ae Figure 81. Channel Intermediaries “casterseren ~~} ‘he Changing Landscape of Channels ne psp gcer & Camble, the channel mode! vas saighe GREAT Fee) savers sated ToPe< for lane. Satay Maeiscbutos orale aeeounIWhen peo ee Gaye gt Product lke Liquid Tide, the sales force sonny channel would get fred up “SIN Apromoion oraindeincensve was geoe te Jetson, the sale fore, dissibutors an eet commas ot eAKNg new foot eae as wrciclror ee eee fom nent and promotional expenditures Poe put ‘new product introduetion, “e ate, almost everything has changed NeeMcow Yoo teu ro Muxnere Guana rues 188 SePersores and Category Killers WalMare had the A 5 s Diggest impact on Pac's traditional channel doen ontucUg basins Bacal the eo ONE iowa. PRG howe ran a a ea prosenst0 gitrantes of tttpaae ese a 8 goods manufac cong het lines, one of the “big boxes" recently shocked ite Pfionnges(Dack & Decker Stanley Toul Seg sean ‘by ltsuing a memo sate faehof tei eceniy anes ‘The internet ‘op R’Usisin a potion smiarto that of Wal Martand Home egor For the mos pare ifyou vant tose ore ‘ae to go through Tors'R' Ur Buti Inemner nae sea oe Slop for on, String woke oer Ton R Unio eee Inteesinghy Tops R'Us recent tied is hand ene ‘ost customen were dsappoitied. Toms Us bee {hat to gain back the good grces of en line case ee Drovde fie shipping and handing forall pic ene ee sou would expect channel ules hee chested ea seas smatcalvand vist vecendy because of te eee ee can now pcka car and chose tne options be dee ye pick up fom, he financing ou desires andthe doer nae Now can plan vacations thot arnt gent and ee oe averting human ing can boys vt epping intos bookstore, you cs order aligear ores down tothe color othe banana wbout oe ae eS ‘Acros industries, customers can accem the mace service provider directly. They can bypass the middleman fee torrec) UMD aed Amuse con hare chet he hen Dares Mas 7 _ ramen ta EDC oe yg eee ecg re at fe of te more Stas nee: Sen at haae cd mare saci ae can pa eet ater compton rand Power Is Channel Power eee tar nes tog et ihn a He reg eesemeen ed cre Shsictaiee pees Shere ere Sa ge cen Hey ene cerns Sine Nahe margin Apical bon hae poner saws oe ment was vented, it provided carpe pe a oad pce p, The Be es en er ar he product soe rm an of ce mS center ee rg aan PONE | ott varked strong enough consumer eae tes on rt ocr 0 forty ame: Whe retaler con hing couner woud BO ce soe aed to te manatee pe ner nence (oe Figre 8.8) od ce nt key show ou 0 what ce alana howto do fot aay ss nea pespectes 08 Yur brand's a a cringe Win te Brand Se ono) expetations set by the marketplace hat jro abide BF cea ga np erent he ores Pree ae he ae in aking purchase dec er ao helped 0 fen and iferendate the uPont Stainmaster's Use of Branding Eaptae Chane! Power E2QoS Fie 83. EeSes cupet F ecision makers from the de Secon the deci iatuencers. The customer ‘mod! alo help you undevtnd where the power exes ihn yours hands and hi mich onal x fuen YOU ty hae and od psy have he Taare eno tegen ot band posting shold have nen YOu Su formation eminent Yous brand cold sould ply iin he chanel o maine our longer ost ‘Three Questions to Determine Ye Your Brand's Regardles of recent dif i the chanel the same thtee funda- ‘mental questions tha have driven channel strategies fo yeas sl Tole Adress ther ad you wil know wether you ean cake more control within your channel and the rele your brand can playa son the role pour brand can 4, Where is the powerin the 2 seling proces 2 How can your brand help you maximize channel power? 53. How can your brand help ou mainrain channel power? “Let's explore each ofthese queséons, 1, Where Is the Power inthe Selling Process? “Tadiionaly, managing the channel involved managing the count Tear intermediaries both direct and indirect, that may be involved in getting your product or service into customers" hands. These intermediaries pial incide wholesaler, brokers, disibutors, retailers, and resellers “The move dee your sein ear the more contrat you exert over the nal sutcome. The more indirect your seing effort, the cntyou exert and, ener he Tes percentage of doliars esilof the sale and-based channel efors is iden- impact on and relation- rmplex. For Tess cont “The key frst step in your sing all the channel members and thei SA Ra your bran. The chain may belong and co se wi ne consumer packaged goods word, the supply cain ‘may look ike thisManutcturer National account males Company sates force + reps — National account Individual reater —+ End wer “ — Sa-eie earns Lvenceh anne me rae ee Foodveric organ eat L — comin Underwriter —e Nationa sales force —> | Local sles force — Broker —» End wer Betting your brand into the lands of the end user “There isan inherent ry ie For power within fis 4 mulubrand conglomerate, the producer may hota another eard—additional name brands that he chee ae customers want or even demand. The producses ioe ta degree to which end users demand a particular bead eens intermediary. an ssc Youn BNO TOMADGE CMR me iy og nee Eonar teatilg ae al ane tinct rs te toy ee Ane age actos a0 MAY calegOries, wih so macy Bona riety have the clout to tell retailer ‘take Mour Fao rs pes ten or ke Vani rou ont ge Pe ore ye Pe a nt Pg aa a ar pertoear ere eae sett ef gts pole {nd evoke high degrees ofloyaey So fora channel member aca ae eon onc a te eh ee oibcouty Wnea The Capsated sus fees eee pada mull into the store. Levi's dictated the rules Shd-The Cop ltened our. But more en dese eae Seige gag ogee on ey siecle An neing gcse, his oneis he cAlrAmenca bande Stary, Sarma he preowned Mercedes car deen ned by Mercedes Ben fathen sey to of ae See Other wed ea esters becaure now ts Seaeseen e {hee wo wats byte bent reoned Mera Sa Sctmnsurver inthe hghpcompetitec neha ean ‘vig one ote seongetnindeit the wd setae ‘or mon companies tat nc bandh do ee te fonts pover tthe meabrendanss Sa een wolenoran eee Warayal ei members involved will dd alot of ‘ em for the price of one, me go vents fp You Maximize Channel Power? pannel game, companies that are he rules change wil surive 3 Wask and ansver i: How do os services to my target aud so OS cnely Bet YP slay in helping me do that? nl rah Poy he channel There have apt CoA os or eae, for example ut Del ses compuen and a thelr offerings, focused on how cus part rng an cosine iene rans doar ane naling oe sa od exPeeneES (whieh led to loyalty: ong ee orbs Cirect marke sn oat popie wan seeing Coren to them—where they contol the sue ae ou succeed in doing ti ike Dells OH rb nae Once you build trast, you can start o ui oy. ‘eal ey, you have iggereda high probability seers andsoung word-ofmouth. in doing all of this 8 $l yooen balla elon ith a customer, whieh isthe tinued conto ‘at Delsarte a business—computers by mail and tele ‘Storia callege to help students and others get computers less Sy ann ase He Bgured hat by bypassing the char “elegant etree cater and man ie ol pam onthe svings to students sgt lislom the sme strategy today with its mulubilion- ‘Sette Btnow Del contol the manufietirng of the ‘SEES Msc paet Compaq asthe nimber one PC Seeder de MgB change for Dell now tthe aadtion cor hile—eling computers on Tine, giving nel ia produce and services sot Band Pea ‘ ee go aT ,e a brand story, Ie built its ting, whose basic tenets ‘buy and selling to them Lemmewevom moan ro Manas Cuseer tre 19 Arto cohen sil canna rea ne nel. By focusing ere awing customers into its chan- 241 focusing on the highes evel oetfee quality and onthe sassy aie ci : belies terete ar Sere ae ae ae eee TSIEN ong ame ee ER aie prey Secon emer oar =o eee area eee eee eee sateen ee re eee coer (a oe a ae A re eS pa eer ak srscetheni gn ene alas Perec eer Se eg cot 2) neal era goo Ctr i the same? To conta your channe. youneed under Seypedotanan ones ee er elacenp Sol mentee TA Se mee sw nr a tenn Pawel pir x manure te work wih, Here ae oe ee Net Ry Ose ‘+ Highestquaiy product of gat generates foot trac 1 Asawa ot sek * Supe Sean) ————12 bea Ase Secenr * Far pricing that allows the while covering the sa 4 Sharing of confor + When needed ey We cstome ove money sel member required margin Pedal promotions ‘cation on how best to we the product Ghee Mersey Nets Relative Suptins 1 Hihescquaiy product or sence Sybase Fence to backup the eerng ats a draing eed allow for premium pricing to help te channel. ‘member meet re s Import 4 otcahaustin, bt hey are fincas ore rer asim beeen he wo law ese se fambine them ino Sve egos nee a anne Concho nee ks on thet needy mec Benerally pay more for high qual Soreif the one they are sopping instock, eae ing ph produ and nga Meebo ae he le (or bow he ann nee the end customer) icp ingen song he bande mone Gere channel mente: wit vant be comet Channel members as mucha posses nie eno ‘omens’ needs and wants 4 Amaia pring stateroom al he em Serta get therm Seger tana ae ify and wil got another at doesnot tae the brand epunctow buve TOMARER CHANEL RIDE . dolar for al intermedi oohedg hich means more bene ti rand ab inponse ag sa cheanel memberauppierparthersiepaed eee mureitappe tat bow des ae ce’ aoe ae the more key there will be a stronger cone tient el oor band sn other emcee Sethe eeepon nm wera eng tigre or ancoe ieee tei ck SA sae eee amayhare an rata es Naa on an ea sticame aircon Ficseranme ret, Oa teats chelator etallers to uvve ont she nenc ten ears (long with Sears, Wa Mart, and Tange. band ayy nee "the lay the ongeh ts aes aun ai omen ada ee auneou cna oat ye rtalUAe leergogi a wana pu seg coe aeons say oem hn equ arene pele eONPates donee een thot Srecwot te a Sri icnaSematstnsl ee nel osence gh et nesegsfene end Dae : Stage eely and introducing, informing, er ang ee hy your brand should be the Toes pol fe hae dc an great of precondoning he San rc oe nsoocon oi en a he ef 08S “ar price from $12,000 to well over et hook 8 STARS Paine Gears, made sure cur sn cent Mpformed about the new car line, nd er wes eer made pit te inodicon ee nae “Str xpsone had sarurm bakes in the market for a new car kt oF acento in te eet ote anny oa ne ie sushi DOSE Taser of effective presile activites is Disney. Dis Se damp ep to rec doers shrug Imari ado nn es reed yma ners, oe es sng om ean tod mera ne a tft etm ad fy wore Before Sex re orn of dlrs had alcndy Seen spent hy cone eae ce tema lion of ire ame aes TADS nthe aw Aug Latte theater or on video. In Stone Dine) Save protdcs the perfect ole for Dancy Shunsui during and afer be event Testo Dancy wea eae customer tat walks ito the ‘fores or attractions as “guests.” Employees are called “cast mem- SS deh dort employee wala trough yap” on {Liteon all employes that their ole is to delight help, Featwould het the sa ss tha les consummated oF lox “come eal ihten inches" depend om the sales rep eva wigngOMCOEPUEChase material that leveraged, the huctor servic is better than the rest the te “LemuncYour avo ro Masnare Guseatorce 195 centives you provide, and the strength of your brand. Whether yottare sling longdinance service over the phone or secking ‘ashing machine decton Sears, if you do not control that “final eighteen inches” you have fort outmost Ukely to another strong band Company stores soc a Nike Tow and Warner Brothars have the adeantage of drawing customers only to their brand simply ‘because that's all they cary Simul stores within stores, such as Polo and DENY within Bloomingales and Sab, gives those power fal brands an edge in closing a branddrven sale ‘The brand promises delivered atthe sale. The brand contract hha been agreed upon andthe expectations are set. So if FedEx docs not ever on ts oveight delivery promise, or Amazon.com takes week wo delve books instead of Ute tree days it promised or tere sone rude employe at Nordstrom's, any presale advan tage thatthe brand had goes sway. Channel member effectiveness in losing she sles what eparstes great brands from others. Postale Management Where Relationship Is Born ‘Aproduct or sence provider's ability to maintain a relationship vith customer afer the lee becoming increasingly important Isretendon ofand additonal sales to current customers isa crith {al clement for thowe companies who have built strong brands. [Lemusisizou for bulding eatonshipe after the sale Te pro- vides fee loanes when an owner's cars inthe shop—whieh, by the way wil away be an upgraded, brandnew Lewus, Lexus 80 prondes an automated xem that connects is dealers across the Eounty so that service dane in Chicago ean be called up bya deal {ip in Sacramento. Saturday morning pancakes, follow-up phone cll reminders of senace needs, birthday cards, and the Eke all help Lexus build a successful relationship with it cus: tomers and maximize the potental fr total saafaction, repeat busines and refer business. Pen Building Your Brand on the Internet Leveraging the Internet asa channel strategy is becoming more of ‘norm thin an exception. The Web, as discussed earlier, provides 4 channel of disenbuton thatis yours forthe aking. However, your196 naw Aner Mn #se had with sees Web retail at there area few key factors a Websoaed rele eras you explore the Webs role your and se appear to cone uy. Keep th + Geary acca ro late your goals. Too many Web strategies do not GS into account other channel members wick eaten = SEREiee to exong channel Gtchannel members involved in your Web design. The worst ‘hing you can do i create ase that wilco acres JEU customer without geting tne cones ‘of the channel involved ur setting th ‘ “Make sure all Internet activities you execute are totally consi tent with your non-Web strategie and aces colom sane prices, and die lke ” * Make sure using the Web is en for your customers, Their ablligto navigate easy and find the informason thayreat peitcato di Sng good eaperance wn our an Leverage customer iaights and compettor webaey i et

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