Brand Management

Lecture 2 (Lecture 1 notes in Notes)

Consumer-based Brand Equity (CBBE)

Brand Equity
Differential Effect => Differences in CONSUMER response
Brand Knowledge => What CONSUMERS learned, felt, seen, heard, experienced over time
Consumer Response to Marketing =>
 Choice of a brand
 Recall of copy points from an ad
 Response to a sales promotion
 Evaluations of a proposed brand extension

Brand Knowledge
 Marketing challenge is ensuring that customers have the ‘right’ BRAND KNOWLEDGE
 Brand knowledge is created through –

Brand Awareness
 Relates to a consumers’ ability to recognise and recall a brand under different
conditions
 Two elements:
o Brand recognition
o Brand recall

Brand Recognition
Consumer’s ability to confirm prior exposure to the brand when given the brand as a cue

Brand Recall
Consumers ability to retrieve the brand from memory when given:
 The product category
 The needs fulfilled by the category
 A purchase or usage situation as a cue

Aided Brand Recall

Which of the following luxury sports brands have your heard of before today:
 Mercedes
 BMW
 Porsche

Brand Image
Associations and perceptions
Most other definitions are in the Lecture 2 Quizlet I have made

Consumer-Based Brand Equity Framework

Four Steps of Building Resonance – Brand Resonance Pyramid

Brand Salience = Brand Awareness

1st Step Who? – Tell the consumer “If you’re thinking of person x product in y category, think
of me” tell them who you are
2nd Step What? – Attach meaning to the brand, comes through brand performance and
imagery associations
3rd Step – Illiciting a positive response on the consumer

First 3 steps are definition of Brand Equity

4th Step – Engaging in creating relationships with consumers

Essential part of the group assignment

LECTURE 3 – BRAND POSITIONING

STP

Segmentation of the Market

Divides the market into separate groups of customers who have similar needs and
consumer behaviour

Targeting
Selection of a primary segment to target

Positioning
A distinct and valued place in the target customer’s minds. Based on key points of difference
(positive difference)

“The act of designing the company’s offer and image so that it occupies a distinct and
valued place in the target customer’s minds.”
Three C’s of Brand Positioning

The best products will fulfill all 9 of these characteristics

Why will consumers be drawn to the idea?
Relevance – Ability to fulfil the job a consumer needs the good/service they are buying to
perform

Resonance – A meaningful narrative, story, associated with the purchase of the product

Realistic – Consumers need to believe in the product, be assured.

 Customer samples
 Physical demonstrations
 Money back guarantees
 Customer testimonials
 Celebrity endorsements
How can it compete in the market?
Distinctive – How is it unique? Even if only in a small way

Horizontal Positioning – adding new, attributes, benefits etc. Consumers might not believe
in it if it goes against the original idea eg. Subway is healthy fast food, Non-alcohol beer that
tastes exactly the same as standard beer
Vertical Positioning – doing what everyone else is doing but with some or all of the elements
being better than competitors

 Shared attributes (POP)

 Distinct attributes (POD)
 Irrelevant attributes

Defensible – Sufficient resources to hold position, deliver on the value proposition again and
again
 Patents and Trademarks
 Defensible claims
 Most authentic source of value (This thing is from x country so it is authentic)
 Outspending competitors

Durable – standing the test of time

 Should not be a temporary fad like a meme

Internal – inside the organisation

Feasible – can the company deliver their promise?
All touchpoints
 Product
 Price
 Place
 Promotion

Favourable – Which claims will capture more value

Assessing the profitability between various positions will allow the manager to figure out
the differential value to the company and to choose the most favourable position

Faithful – Brand Authenticity

 Can you say faithful to the idea you’re proposing? Will you be able to actually deliver
it? Will the employees believe in it?
o E.g the employees of Harley Davidson believe so much in the concept that
they ride Harley Davidsons
 Many organisations don’t have this kind of loyalty from their employees. Will the
company be able to defend their position when challenged?

Now the company must build its brand positioning statement

Consumers might not see or understand this, it is an internal facing statement

Will be on the exam – 6 parts to a positioning statement

Target Group, User/need

 Demographics, Psychographics and Attitudes
 Usage habits,
 Needs

Competitive Framework Reference

What does your brand substitute or replace?

It signals to the consumer what they can expect to be achieved when they use the brand
It dictates what associations will have to be established to achieve points of parity and
points of difference.

Draw a comparison (Frame of reference)

Point-of-difference benefits
What is to be gained?

Typically categorised into 4 types

Economic Value
Functional Value
Experiential Value – an experience only found by using the product
Social Value

Reason why
Give reasons why the benefit is expected to be delivered

Experience => Samples, tests, etc. Past evidence that it works

Product => Design, ingredients, etc something about the product that gives reason to
believe in it.
People => Celebrity endorsements

Example

LECTURE 4
Brand Elements

Lecture 5
Personalised Relationships for Brand Building
1. Compability
2. Communication
3. Honesty
4. Calmness
5. Forgiveness
6. Smiling
7. Time

Theories of interpersonal relationships

Social Exchange Theory (Homans 1958)
 How much one puts into a relationships versus the other

Uncertainty Reductions Theory (Berger and Calabrese 1975)

 Strangers go through steps to reduce uncertainty about each other and as the
uncertainty reduces, the bond between the two increases

Consumers
 Have more consumer power
 Can purchase a greater variety
 Can obtain a great amount of information
 Can more easily interact with marketers
 Can interact with other consumers

Companies
 Wider geographic reach
 Can collect fuller and richer information
 Can use 2-way communication
 Can send promotional offers digitally
 Can customise their offerings
 Can improve operations via technology
Step 1 - Personalising the Relationship
Listen to Signals
Understand the rules
 Reorganise marketing around relationships
 Create new roles fo employees
 Expand the marketing umbrella

Step 2 – Personaling the relationship… Keep Learning

 Identify customers
 Differentiate them by value and needs
 Interact with them more cost-efficiently and effectively
 Customise some aspect of the firm’s behaviour

Identify Customers
 Collect information
 Continue to collect information
 Update information

Differentiate customers
 Rank order customers based on value and needs
 Aim to delight the top customers
 Perhaps, aim to let the bottom customers go

Interact with customers

 Don’t Sell, Just Chat
 Mystery shopping
 Reduce Cycle Times for Response
 Complaint Handling

Customise Behaviour
 Respond to suggestions
 Take ‘permission’ from customers on how, when, where they would like to interact
 Involve Top Management

Step 3 - CREATE memorable (remarkable) experiences

 If you charge for stuff, you are in the commodity business
 If you charge for Tangible things, you are in the Goods business
 If you charge for activities you perform, you are in the service business
 If you charge for the time customers spend with you, you are in the experience
business
  Know your customer
 Keep it sweet and simple
 Start with the heart
 Walk through a day, week or month in the life of your customer experiencing your
brand
 Humanise it
 Empower and engage your employees
 Keep your word
 Smile
 Embrace the fun factor
 Listen

Memorable Experiences – 5 Sense Pproach

Sight Sensory Branding

Packaging is a key branding component, but can it more than visual
83% of products only appeal to sight

Smell Sensory Branding (This is HUGE imagine that fresh MacBook smell)
1965 Rolls Royce Silver Cloud interior comes with a diffuser that diffuses the unique Rolls
Royce fragrance – conveys the unique luxury identify of the brand

Taste Sensory Branding

Touch Sensory Branding

Is there a payoff for the investment spent in creating Personalised Relationships with
customers?
Payoffs

Reduced Customer Attrition

 Acquisition of customers can cost 5 times more than retaining current customers
  The average company loses 10% of its customers each year
 A 5% reduction to the customer defection rate can increase profits by 25% to 85%
 The customer profit rate increases over the life of a retained customer

Payoffs
Reduced Transaction Costs and Faster Cycle Times

Payoffs
Improved Customer Satisfaction

We Live in a Digitised World – Isn’t that Anti-Personalisation?

Framework for Digital Marketing

Step 1 – Outbound
Search Ads
Display Ads

Step 2 – Inbound (Search Engine Optimisation)

 Google’s search ranking are based on fulfilling two criteria: relevance and authority
 Relevance measures how closely google can match a consumer’s search query to a
particular web page
 Authority is Google’s measure of a page’s importance, based on the number of other
web pages that link through to it

Creating content that increases relevance

 Adopt a customer-centric view – finding ways to solve a consumer’s problem
regardless of immediate, direct connection to product sales

Creating content that increases authority

 Original content encourages other websites to provide links to it – the content
should contribute to a company’s brand reputation

Step 3 – Social Media

5 Fingers of Social Media
  Brand Awareness
 Credibility
 Thought Leadership
 Consumer Feedback
 Expected

4. Mobile
Data Collection: Waking Up
If you’re waking on a college campus, then ber companies might want your eyeballs. Or if
you live in a posh suburb, for example, they might target you with ads for luxury cars

Lecture 6
Integrated Marketing Communications

Micromodel of Consumer Responses: Response Hierarchy Models

Exposure – Seeing or hearing communication

Attention – Noticing communication
Comprehension – understanding the intended message
Yielding – Responding favourably to the message
Intentions – Planning to act in the desired manner of communication
Behaviour – Actually acting in the desired manner

The key commonality with all these models here is that communication goes through
multiple steps
First there is some way the communication reaches you
Then there’s a way it affects you emotionally
Then there’s a way it makes you take action

A good communication message needs to be able to achieve a lot – it needs to make

consumers move through these stages, that is a good message

Marketing Communication Options

 Advertising and Promotion
 Events and Experiences
 Mobile Marketing
 Interactive Marketing

Advertising
Plenty of options
 Television
 Radio
 Print
 Out of Home (Place)
 Direct Response

Old options but they are definitely still valid

Advertising Decisions
1. Media Selection Decisions
2. Message Content Decisions
a. Positioning Objectives
b. Creative Strategy

The first decision that needs to be made is what media are you going to use? Television,
radio etc.

The key principle here is encoding variability, diversify your advertising options and spread
your resources but not too much, because different forms of media sometimes require
different strategies. The message needs to have similar meaning across different media to
not confuse consumers.

Television
 A traditional “ATL – above the line” medium
 o Above the line meaning any communication which is sent to the audience via
mass media, e,g. billboards, literally anyone will come into contact with it
o Anything designed at a much smaller scale to hit a very specific audience –
like a cookies tracked advertisement
 Strengths
o Demonstrates a product in use or the benefits that product can bring to you
o High intrusion value (captivity and attention)
o Can entertain/excite, thus impacting mood
o Mass coverage – above the line medium
 Weaknesses
o High cost
o Erosion and fragmentation of viewing audience
o Low segmentation potential
o clutter

Reach – the number of consumers with the opportunity to see and

Frequency – The number of times an ad is placed

Radio
 Strengths
o ‘Theatre of the mind’; mental imagery
o Cost and efficiency
o High frequency, quickly
o Well-segmented audiences (selectivity)
 Weaknesses
o Impact and creative limited – audio only
o Limited listener attention
o Clutter
o Station surfing/background only

WARC database – we should use for assignment

Print
Out of home/place
 Outdoor includes billboards, transit advertising, bus stops, taxi backs and in store
 As the audience must process out-of-home ads very quickly, the message must be
simple and direct
 Marketers must stress on creative means of placing the brand in front of customers

Product Placement (in movies for example)

 Reese’s Pieces sales increased 65% after placement in ET

Point of purchase
 Supermarket logos and pop up boards of items
Direct Marketing
 Personally contacting customers and potential customers directly rather than
through an indirect medium such as magazine ads, billboards etc. seen by the
general public.
 Can include mail, telephone calls, emails, brochures, and coupons. The information is
usually very broad and meant for a general audience.
 Telemarketing
 Direct mail
 Loyalty programs
 Email
 Text SMS
 Infomercials
 They’re hella annoying

Promotions
Short-term incentives to encourage trial or usage of a product or service. Designed to
change the behaviour of:
 Consumer so that they buy a brand for the first time, buy more of the brand, or buy
the brand earlier or more often
 Trade so that they carry the brand and actively support it

Events and Experiences

Mobile Marketing
 Messaging services
 o Offer Customers unique offers based on time and location
 In-app Advertising
 Proximity systems marketing/geo-fencing
o Involves advertising messages delivered to mobile users with a defined
geographic area

Interactive/Digital

Viral ads
 Prominent branding puts off viewers. People don’t like to be persuaded
 People get bored right away. Two emotions that keep people involved are joy and
surprise
 People watch for a certain time and then stop if engagement is lacking

 People like an ad but won’t share it

 People still won’t share the ad even if everything is done right

Social Media
Identify the choice criteria and guidelines in developing an IMC Program
LECTURE 7
Some quick Assignment 2 advice
Measuring Brand Equity refers to the 4 levels of pyramid
 Salience
 Meaning
 Response
 Relationship

Two ways to approach assignment

1. Write about each level of the pyramid – lecturer says writing it this way often leads
to a repetitive assignment and at times not backed by evidence
2. Lecturer advice – don’t talk about the ‘levels,’ talk about 2 or 3 strategies the brand
uses to climb the pyramid.
a. Talk about the first thing the brand does e.g. relationship building. Then talk
about what the brand does to build relationships, THEN discuss how it affects
level 2, 3, etc. of the pyramid
b. Same with the following
Secondary Brand Associations
The basic idea is that the brand is going to get help from other entities in the marketplace to
help boost its brand equity and the 4 levels of the pyramid.
Grouped into 4 main types:
 Other brands
o Company e.g. Toyota Camry
o Extensions
o Ingredients e,g. Intel computer chips – or M1, M2 etc.
o Alliances
 People
o Employees
o Endorsers
 Places
o Country of origjn
 Korean electronics
 Indian Spices
 German cars
 Swiss watches
o Online and offline channel
 Things
o Events
o Causes
o Third-party endorsements

Company (Corporate) Associations

Camry example – should Camry brand itself as just the Camry, or the Toyota Camry?
Dotted line for Product Social Responsibility – because often times if CSR is achieved, it
doesn’t necessarily means consumers think this particular product is socially responsible,
but rather the company itself.

If the association is weak, non-unique, unfavourable a company wouldn’t want to associate

with it.

Corporate Ablity – the technical expertise, sophistication, the ability of the company to do
what they are supposed to do

Corporate Social Responsibility – is the company good for sustainability, the environment,
fairness etc.

Product Sophistication – how superior is the product compared to others?

Product Evaluation – what do we overall think of the product

Product Social Responsibility – how good is the product for the overall society

Corporate Evaluation – overall degree of favourableness or unfavourableness seen in the

company from consumers and potential consumers
Country of Origin (COO) Effects
 Any influence that the country of manufacture, assembly, or design has on a
consumer’s perception of a product
 Consumers tend to have stereotypes about products
 Pretty huge factor when you think about it

Channels of Distribution
 Access – location of the store
 Store atmosphere – colour, music, crowding
o The speed and energy of music can control the pace of customers’
movements
 Price and Promotion
 Cross-Category Assortment – Breadth of products
 Within-Category Assortment – Depth of product

Co-Branding
 When two or more brands combine to leverage off each other’s brand equity
o Cadbury chocolate and Vegemite
o Nike and Apple
o Chatime and Red Bull

When should two companies form an alliance and cobrand?

When Quality of the Product is Unobservable (typically new brands)
  Makes sense to form an alliance with a brand that already has the impression of high
quality e.g. Pepsi and NutraSweet
When Quality is Observable
 Brand alliances ‘add’ to the number of product attributes

Cause-related Marketing (CRM, not to be mistaken with customer relationship marketing)

– A special alliance
 Formulating and implementing marketing activities that are characterised by an offer
from the firm to contribute a specified amount to a designated cause when
customers engage in revenue-providing exchanges that satisfy organisational and
individual objectives
 Typically a profit and non-for-profit company unite – generally both should find
something to gain here

Guidelines when thinking of borrowing equity from a non-for-profit cause

1. Fit
2. Don’t fake concern for the cause – genuinely want to help
3. Don’t skimp on other marketing activities
4. Measure effectiveness of the campaign
5. Tell consumers about the campaign
6. Involve top management and employees
7. Code of ethics
8. Don’t make consumers hunt for information – make it easy
9. Tell people
Licensing
Involves contractual arrangement of exercising ownership of a figure by enforcing payment
for third party use

Celebrity Endorsement
 Q ratings
o The Q score quotient is based by dividing the total percentage of respondents
who say the celebrity is “one of their favourites” by the total percentage of
the population or audience who are “familiar with the celebrity”

Davie Brown Index

Potential problems
Sports (Events) Sponsorship Index

Third Party Sources – enhances credibility

 Journalism reviews
 Awards etc.

For this to work, the third party MUST be independent, and cannot be assumed by
consumers to have some kind of favourable affiliation with the brand in order for it to work.

Tutorial Recap – Brand Equity

Qualitative Research Techniques

Quantitative Research
 Brand Awareness
 Brand Image
 Brand Responses
  Brand Relationships

Encouraged to use BAV model in Appendix report

H1s really raise the bar with

Lecture 8 – Measuring Brand Equity

Qualitative vs Quantitative Research

Quantitative is a lot more concrete due to the statistical nature of it – it is much more
objective and factual.

Qualitative Research Techniques

 Free Associations
 Projetive Techniques
 Zaltman Metaphor Elicitation Technique
 Neural Research Method
 Brand Personality and Value
 Ethnographic and Experiential Methods

Free Associations

Projective Technique
Present consumers with ambiguous stimulus and letting them makes sense of it. Leaving
things iup for interpretation basically

Completeion and interpretation tasks

Respondent is shown a picture and is asked to provide dialogue, thoughts or feelings of
people in the drawing.

LECTURE 9
Brand Portfolios
Brand-Product Matrix

 Rows (brand-product relationship) represent the original Brand line and category
extensions of a given brand
 Columns (product-brand relationship) represent the ‘brand portfolio’ the set of all
brands the company offers for sale to buyers in a particular category

Multiple brands are often employed in a single category for market coverage
 Target different arket segments to satisfy consumers needs

Basic principles include:

 Maximise coverage
 Minimise overlap

High end prestige brand

 Lends credibility to portfolio

Other strategic roles

 Increase shelf space and retailer dependence in store
 Attract a market segment not served yet
 Attract customers seeking variety who may otherwise switch to another brand
 Increase internal competition within the firm
 Yield economies of scale in advertising, sales, merchandising and/or distribution
Brand Architecture or Hierarchy
 Summarising branding strategy by displaying number and nature of common and
distinctive brand elements across the firm’s products, revealing the explicit ordering
of brand elements

Which elements are applied to which products?

Which new and existing brand elemetns shold be applied to new proucts for maximum
effectiveness

Corporate Brand
 Always present on packaging somewhere
o The only brand used on products (Samsung, LG)
o Combined with another brand name (eg. Apple iPad)
o Completely invisible

Family Brands
 Same brand supports several products in different markets on a group of similar
products
o More flexible in communicating brand benefits
o But, risk of brand dilution through product failure

Individual Brands
 Restricted to one product category
 Allows for customisatoin
 Less likely to have adverse impact on other brands
 BUT, costly and complex
Modifier Brands
 Highlight a specific item or model type or version of the produt
 Signal refinemenets to a product
 Eg. Greek yoghurt, coconut yoghurt, high protein yoghur

Brand Architecture vs Brand Portfolio

Designing Branding Strategy

Key decisions
1. Decide on which products are to be introduced
2. How many hierarchy levels to use
3. Desired brand awareness and image at each level
4. How to combine the different brand elements from different hierarchy levels
5. How to link any one brand element to multiple products
Designing a branding strategy
1. Decide on which products are to be introduced
 Principle of Growth
 Principle of Survival
 Principal of Synergy

2. Decide on how many hierarchy levels to use:

a. Principle of simplicity
i. Sub-branding is a common strategy
3. Decide on the desired level of brand awareness and image at each level
a. Principle of Relevance
i. Aim is to create associations that are relevant across as many
individual items as possible
b. Principle of Differentiation
i. Aim is to distinguish brands at the same level as much as possible
4. Decide how to combine different brand elements from different hierarchy levels
a. Principle of prominence
5. Linking brand elements to multiple products
a. Principle of Commonality
i. The more common elements shared by products, the stronget the
linkages
ii. Similar names, symbols, colours

Brand Renewal Matrix

Written Assignment Tips

Executive Summary
Paragraphs is fine, but one page only

Introduction
NO BULLET POINTS

“What need does it satisfy” – get specific, make sure it really applies to the brand

POP and POD’s definitely include

Key positioning also definitely include

CBBE Model
 Include photos, powerpoint type stuff
 Visual representation of pyramid is up to us

Identifying Issues
 Issues must be based on the brand analysis CBBE

Recommendations
 Remove ‘this group recommends (based on our opinion’ instead, ‘this
recommendation is based on x aspect’ MUST INCLUDE ACADEMIC REFERENCES TO
BACK CLAIM
 Sub sections for Strategic and Tactical recommendations
 One page shouldn’t be one paragraph, sections are expected

Appendix
 Worth 5 marks
 Supplementary information, not vital

Other things
 Report should be easy to read, no waffling, sections are clear, diagrams make sense
etc.

LECTURE 10 – BRAND EXTENSIONS

Most common way a brand tries to boost its brand equity.

Horizontal Brand Extensions

Brand extensions can be a sub-brand (e.g. Toyota Camry)

Category Extension – Use the parent brand to enter a different product category (very
different product, could be cars to trucks or even cars to watches)
Line Extension – Adds a different variety, form or size, or application for the brand – e.g.
head and shoulders shampoo lines

Vertical Brand Extensions

Sort of within the same product category, but at a different price point

Upward Extension – extend a brand up into more premium market segments

Downward Extensions – Extend down into more value- conscious segments

Scary looking graph:

90% of extensions fail and 54% survive only 3 years.

Advantages of Extensions
 Facilitate new product acceptance – far easier for a new product to be accepted by
all stakeholders if it is a brand extension, however, can carry negative associations
tied to the parent brand
 Provide Feedback Benefits to the Parent Brand

Facilitate New Product Acceptance – How?

 Improve brand image
 Reduce risk perceived by customers
 Increase the probability of gaining distribution and trial
 Increase efficiency of promotional expenditures
 Reduce costs of introductory and follow-up marketing programs
 Avoid cost of developing a new brand
 Allow for packaging and labelling efficiencies
 Permit Consumer Variety-Seeking

Provide Feedback Benefits to the Parent Brand – How?

 Clarify Brand Meaning
 Enhance the Parent Brand Image
 Bring New Customers into the Brand Franchise and Increase Market Coverage
 Revitalise the brand
 Permit Subsequent Extensions

Example

Disadvantages of Brand Extensions

 Can confuse/frustrate customers
  Can encounter retailer resistance – retailers are bound by their carrying capacity and
thereby so is the brand
 Can fail and hurt parent Brand Image
 Can succeed but cannibalise sales of parent brand – people are switching from coke
to coke zero, coke zero comes at the expense of coke
 Can succeed but diminish identification with any one category
 Can succeed but hurt the image of the parent brand
 Can dilute brand meaning
 Can cause the company to forgo the chance to develop a new brand

Understanding How Consumers Can Evaluate Brand Extensions

 Managerial Assumptions – some positive associations are brought over from parent
to extension, no negative brand equity from the parent is associated to the
extended, no new negative associations are brought onto the parent brand from the
extended brand, new positive associations will be added to the brand extension
 Brand extensions and Brand Equity –
 Vertical Brand Extensions

The success of Bic pens, lighters and razors

Known to be accessible, practical and disposable

A lot of this is up to the retailer, people tend to buy these things if visible and without real
knowledge of the brand

The failure of Bic – Bic extends into perfumes

 Bic is known for being cheap, and disposable – why would they associate that with
perfumes?

Academic Findings
 There is a high level of success between the extension and parent brand when there
is a nice “fit” or similarity, synergy etc. between the two
1. Successful brand extensions occur when parent brand is seen as favourable and
consumers perceive some level of fit between parent and extension
a. Many basis of fit: product-related attributes + benefits, as well as non-
product-related attributes + benefits tied to common usage situations or user
types
b. Perceptions of fit may be based on technical or manufacturing commonalities
or more surface level considerations like necessary or situational
complementarity
2. High-quality brands stretch farther than average-quality brands (both still have
boundaries)
3. Brands that are prototypical of a product category can be difficult to extend outside
the category (eg Starbucks Coffee, McDonalds unhealthy fast food)
4. Material/concrete attribute associations are harder to extend than perceived
abstract benefits
5. Associations considered positive in the original product class may become negative
in an extension context
General Strategies for Establishing a Category
Introduce the same product in a different form

Introduce products that contain the brand’s distinctive taste, ingredient or component e..g
philadelphia cream cheese

Introduce companion products for the brand – complementary

Introduce products relevant to the customer franchise of the brand

Introduce products that capitalise on the firm’s perceived expertise – Honda will be seen as
anything good to do with motors

Introduce products that reflect the brand’s distinctive benefit, attribute or feature

Introduce products that capitalise on the distinctive image or prestige of the brand

Brand Stretch by David Taylor

Functional stretch
  This dimension concerns the credibility of the brand’s delivering the functional
benefits in the concept

Kellogg is the endorser. Special K is the actual brand. A stretch to an energy bar from a
cereal is not too far of a stretch. Functionally speaking they are very similar

Emotional Stretch
 Occurs when the personality, tone and style of the extension is different to that of
the Masterbrand
 A sub-brand allows more emotional stretch than a simple descriptor (e.g. Bacardi
Breezer versus Bacardi Lime and Soda). Earlier the functional stretch with Special K
was described literally just as Special K “Bar.”
Endorsement differs from sub-brand, as sub-brand is much more clearly tied to Bacardi.
If the stretch of the extension is too far from the parent, it needs to be a completely new
brand as opposed to an extension

Brand Extendibility Scorecard – decides whether you should extend or not extend the brand

LECTURE 11
Managing Brands Over Time

Product Evolutionary Cycle (PEC)

 Generative Force - Managerial Actions (strategic and tactical)
 Mediative Force – Competitors’ actions and responds to marketing initiatives
 Selective Force – Market Environment
  Repeat – these forces can lead to the decline of brands

BRAND can evolve and is not pre-destined to die

Reinforcing Brands
Revitalising Brands
Adjusting Brand Portfolio

Reinforcing Brands (Remind customers of what the brand means – always doing
something at level 1 and 2 of the pyramid)
1. Maintaining brand consistency
2. Protecting Sources of Brand Equity
3. Fortifying or Leveraging
4. Fine-tuning the marketing support program

One - Maintaining Brand Consistency

 Consistency of marketing support is essential for maintaining strength and
favourability of the brand
 Shrinking R&D and communication budgets may risk the brand becoming out-of-
date, irrelevant, or even forgotten

Two – Protecting Sources of Brand Equity

 Key brand associations should not be altered

Three – Fortifying vs Leveraging

 Fortifying means ways of increasing brand equity and furthering the brand image
through continuous marketing and advertising efforts – Innovative marketing
campaigns
 On the other hand, capitalising on existing brand equity to reap accruing benefits in
terms of cost savings (reduced communication expenditure) and revenue
opportunities (seeking increasingly higher premium and introducing brand
extensions.)

Four – Fine-tuning the Supporting Marketing Program

 Product-Related Performance Associations
o Innovation in product design and manufacturing is critical
o Essentially just staying competitive by being a consistently viable option
o
  Non-product related Imagery Associations
o Do not change this – don’t flip flop
o E.g. Heineken “just being the best is enough” at first, but then changed the
brand imagery to the star, didn’t work so they brought it back
o User and Usage Imagery is critical

Approaches to Revitalisation (something needs to be reworked to revive brand equity)

1. Expanding Brand Awareness
2. Improving Brand Image

Expanding Brand Awareness

 Expand Breadth – Increased Usage
o Quantity
 Difficult to change
 Exception – Impulse Consumption (availability)
o Frequency
 New opportunities
 New ways

Increase Frequency – New Usage Opportunities

 Frame the product as being appropriate for more than one situation

Increase Frequency – Identifying New and Completely Different Ways to Use the Brand
 New and different usage application
o E.g. Wrigley’s chcewing gum as a substitute for smoking
o Kellogg’s recipes
o Can include ways you never imagined as a way to use the product

Improving Brand Image

  The two extreme ways to fix things when things go wrong is to either, go completely
back to the roots of what worked (back to the basics,) or reinvent the entire thing to
make it work in a new way

Repositioning and Changing Brand Elements

McDonalds is a good example of trying to break away from the cheap idea of fast food –
restaurant renovations, kiosks, overall new look

Adjustment Approaches to Brand Portfolio

1. Migration Strategy
2. Acquiring New Customers
3. Retiring Brands

One – Migration Strategy

 Entry-Level Brands – critical in bringing new customers
  Logical ordering – Hierarchical Structure in Consumers minds – e.g. start upgrading
products in the mind of consumers, all apple products are designed to be upgrades
from the last version

Two – Acquiring New Customers

 Reach out to new customer groups
o Kellogg’s frosted flakes marketed to adults
 Reach out to decision making segment instead of the users
o Women as decision makers for men’s products
 New market segments based on cultural dimensions
 Multiple Marketing Programs
o Sepearate advertising campaigns and comms programs for each segment
 Brand Extensions and Sub-Branding
 New Distribution Outlets
o Making products more available e.g. sunglass hut

Three – Retiring Brands

1. Withdraw Marketing Support (Orphan Brand)
2. Consolidation
3. Discontinue Product