Strategic Brand Management

WELCOME!!
Soni Simpson

“Brand Team” Introductions

Name  Personal Demographics
– – – –

Who You Work for What You Do All Day Undergraduate Focus What Degree You’re Working on

Communicate your personal brand essence and call to action In :30 please…

What Courses You’ve Completed/Are In

Personal Psychographics
– Something Fun/Unique About Yourself – What Motivates You – Why You’re Here Tonight

Course Overview

What Do You Think You’re Going to Learn this Quarter? We’re going to define and refine our thinking about brands, what they are and how to manage them We’ll build off text, industry experts & studies, guest lecturers, real life experience and class exercises

Strategic Brand Management 09/10/03 AGENDA TACTICAL Application  Top Brands •Brand Share  Brand vs Product vs Company •Brand Management •Brand Management Task Models  Product Levels •IN CLASS CASE STUDIES  Brand Definition •Self Positioning  Brand Relevance •Du Pont Case Study  Power and Corporate Brands •Due Next Week  Brand Equity  Brand Value  Good To Great Companies/Hedgehog .

2 MERCEDES 21.P.0 Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.. 2002 .1 IBM 51. J. Data: Interbrand Corp.3 McDONALD'S 26.Strategic Brand Management The World's 10 Most Valuable Brands .9 NOKIA 30. Morgan Chase & Co / Business Week AUGUST 5.3 INTEL 30.4 MARLBORO 24.6 MICROSOFT 64.2 GE 41.2002 1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.0 DISNEY 29.

Strategic Brand Management The Top 10 Global Marketers .967 PROCTOR & GAMBLE 2. 2002 . 1.560 TOYOTA 1.127 GENERAL MOTORS 1.2002 1 2 3 4 5 6 7 8 9 10 Ad Spending Outside US (MMs) UNILEVER 2.345 VOLKSWAGON 1.290 COCA-COLA CO. Sept 9.004 FIAT 998 Data: Global Marketers (Ad Age Global. 1.028 PSA PEUGEOT CITROEN 1.176 FORD MOTOR CO. 11/01) Ranks advertisers by estimated total measured advertising outside the US Ad Age Fact Pack.610 NESTLE 1.

1..127 GENERAL MOTORS 1.028 PSA PEUGEOT CITROEN 1. 2002 Data: Interbrand Corp.2 MERCEDES 21.176 FORD MOTOR CO. J.2002 Ad Spending Outside US (MMs) UNILEVER 2.2002 The World's 10 Most Valuable Brands 1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.4 MARLBORO 24. Morgan Chase & Co / Business Week AUGUST 5.6 MICROSOFT 64. 2002 .290 COCA-COLA CO.560 TOYOTA 1.P.1 IBM 51.9 NOKIA 30.345 VOLKSWAGON 1. Sept 9. 1.0 .3 INTEL 30.Strategic Brand Management The Top 10 Global Marketers 1 2 3 4 5 6 7 8 9 10 .967 PROCTOR & GAMBLE 2. 11/01) Ranks advertisers by estimated total measured advertising outside the US Ad Age Fact Pack.004 FIAT 998 Data: Global Marketers (Ad Age Global.3 McDONALD'S 26.610 NESTLE 1.2 GE 41.0 DISNEY 29.

4 7 Toyota 568.4 Data: Megabrands. AA July 22.5 9 Dodge 499.4 4 Ford 655.1 6 Sprint 620.4 3 Chevrolet 780.3 8 Sears 511. 2002 Media Dollars excluding promotion & direct marketing expenses Ad spending for CY2001 .2 10 Chrysler 474.6 2 Verizon 824.2002 US Ad Spending ($MM) 1 AT&T 996.Strategic Brand Management The Top 10 US Mega Brands .9 5 Mc Donald’s 635.

41 4 Pepsi Co 2.54 3 Ford 2.99 7 AOL Time Warner 1.82 9 Walt Disney 1.Strategic Brand Management The Top 10 US Advertisers . 2002) Ad spending for CY2001 includes advertising.62 Data: 100 Leading National Advertisers (AA June 24.37 2 P&G 2.2002 US Ad Spending ($BIL) 1 General Motors 3. promotion and direct marketing expenses .89 8 Philip Morris 1.76 10 Johnson & Johnson 1.21 5 Pfizer 2.19 6 Daimler-Chrysler 1.

Strategic Brand Management The Top 10 US Mega Brands .1 6 Sprint 620.82 9 Walt Disney 1. 2002 Media Dollars excluding promotion & direct marketing expenses Data: 100 Leading National Advertisers (AA June 24.4 4 Ford 655.19 6 Daimler-Chrysler 1.6 2 Verizon 824.4 3 Chevrolet 780. 2002) Ad spending for CY2001 Ad spending for CY2001 includes advertising.89 8 Philip Morris 1.2002 US Ad Spending ($MM) 1 AT&T 996. AA July 22.2002 The Top 10 US Advertisers .37 2 P&G 2.4 7 Toyota 568.41 4 Pepsi Co 2.54 3 Ford 2.62 Data: Megabrands.21 5 Pfizer 2.9 5 Mc Donald’s 635. promotion and direct marketing expenses .76 10 Johnson & Johnson 1.4 US Ad Spending ($BIL) 1 General Motors 3.99 7 AOL Time Warner 1.2 10 Chrysler 474.3 8 Sears 511.5 9 Dodge 499.

What is a Product?  Kotler’s Five levels to a product: Potential Product Augmented Product Expected Product Generic Product CORE BENEFIT .

What is a Product?  Kotler’s Five levels to a product: Potential Product Augmented Product The Fundamental Need or Want that consumers satisfy by consuming the product or service Expected Product Generic Product CORE BENEFIT .

What is a Product?  Kotler’s Five levels to a product: Potential Product Augmented Product Expected Product Generic Product CORE BENEFIT Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. .

What is a Product?  Kotler’s Five levels to a product: Potential Product Augmented Product Expected Product Attributes and Characteristics that buyers normally expect and agree to when they purchase a product Generic Product CORE BENEFIT .

or related services that distinguish the product from competitors Generic Product CORE BENEFIT . benefits.What is a Product?  Kotler’s Five levels to a product: Potential Product Augmented Product Expected Product Additional product attributes.

What is a Product?  Kotler’s Five levels to a product: Potential Product Augmented Product Expected Product All the augmentations and transformations that a product might ultimately undergo in the future Generic Product CORE BENEFIT .

benefits.What is a Product?  Kotler’s Five levels to a product: Potential Product All the augmentations and transformations that a product might ultimately undergo in the future Additional product attributes. The Fundamental Need or Want that consumers satisfy by consuming the product or service . or related services that distinguish the product from competitors Attributes and Characteristics that buyers normally expect and agree to when they purchase a product Augmented Product Expected Product Generic Product CORE BENEFIT Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.

anything offered to a market for attention. or consumption that might satisfy a need or want. acquisition.What is a Brand?  Not simply a product -.  A product can be: – – – – – – – Physical good Service Retail Store Person Organization Place Idea . use.

Timothy D. Ennis. Ennis Associates. Inc .What is a Brand? Product = Commodity A product is a produced item always possessing these characteristics: • Tangibility •Attributes and Features Brand = “Mind Set” The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits.

or a combination of them. term. or design.  AMA (technical definition) – “Name.What is a Brand?  Derivation – Old Norse “brandr” = to burn – branding livestock  Heritage – A means to distinguish goods from one producer vs another. sign. intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition” . symbol.

 What does the AMA definition leave out? .What is a Brand?  AMA defines a brand vs a Brand.

What is a Brand?  Keller’s Definition: – A product. but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need.   Rational and tangible Symbolic. . emotional and intangible  The psychological response to a brand can be as important as the physiological response.

Timothy D. Ennis Associates. Inc .What is a Brand? Product = Commodity A product is a produced item always possessing these characteristics: • Tangibility •Attributes and Features Brand = “Mind Set” The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits. Ennis.

bond. or pact w/make of product  Symbolic Device  Signal of Quality .Why Does A Brand Matter? MANUFACTURERS  ID to simplify handling or tracing  Legal protection of unique features  Signal of quality level to satisfied customers  Means of endowing products w/unique associations  Competitive Advantage  Financial Returns CONSUMERS  ID Product Source  Assignment of responsibility to maker  Risk reducer  Search cost reducer  Promise.

something which they value  Brand = Credible Guarantee  .What is a Brand? Products don’t exist in a void…  They are bought because consumers have found something they relate to in them.

Ennis. Inc . Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Strong Brand Brand Distinctive Perceived by the Consumer as Unique Timothy D. This is critical to keeping competition from the consumer’s consideration.What is a Brand?  Relative Brand Distinction – The more distinctive or different a brand is in the consumers “mind set”. the stronger brand preference becomes. Ennis Associates.

Ennis Associates. Inc . Ennis.What is a Brand?  Relative Brand Distinction – A brand’s preference is primarily built through differentiation and relevance – Insulate product from competition – OWN Something Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Strong Brand Brand Distinctive Perceived by the Consumer as Unique Timothy D.

What is a Brand? Potential Product Kotler’s Five Levels of A Product Augmented Product BRAND DISTINCTION by Timothy D. Ennis Products (Commodities) No Difference Except Price Expected Product Brand Name Well Known But Similar Strong Brand Brand Distinctive Perceived by the Consumer as Unique Generic Product CORE BENEFIT .

Ennis Products (Commodities) No Difference Except Price Expected Product Brand Name Well Known But Similar Strong Brand Brand Distinctive Perceived by the Consumer as Unique Generic Product CORE BENEFIT OWN Something .What is a Brand? Potential Product Kotler’s Five Levels of A Product Augmented Product BRAND DISTINCTION by Timothy D.

What is a Brand?  What Makes the Best Brands? – – – – – Source of company wealth for generations Improves with Age Develop clearly defined personalities Develop affection & loyalty of the public Become parents to sub-brands and brand extension  Brands = Powerful emotional tools .

.What Is a Brand?  Truly understood brands are the things which patrol the boundary between people and the world outside them.  A brand with an emotional difference can potentially command a premium forever.

Strategic Brand Management
Case Groups Definition: Product Service Corporation Brand

Strategic Brand Management

Corporation vs Service vs Product vs Brand

Alternative Branding Models
Company dominates Brands
American Express (cards) BMW (Motorcycles) Colgate (Total toothpaste) Disney (Films) General Electric (appliances) IBM (Technology) L’Oreal (Cosmetics) Sony (Electronics) Holiday Inn (Crowne Plaza)

Company is equal to Brands
Anheuser Busch = Budweiser Campbell Soup = Godiva Chrsyler = Jeep Estee Lauder = Clinique Kraft = Maxwell House PepsiCo = Mountain Dew Time Warner = Warner Bros 3M = Scotch Tape Marriott = Courtyard

Brands dominate the Company
Skol (Am Bev) Claridge Hotel (Savoy) Crest (P&G) Healthy Choice (Con-Agra) Hidden Valley Ranch
(Clorox)

Kleenix (Kimberly-Clark) Marlboro (Philip Morris) MCA Records (Universal
Studios)

Wranlger (VF Jeans)
Kevin Clancy, Copernicus

Morgan Chase & Co / Business Week AUGUST 5..0 DISNEY 29. J.2 GE 41.3 McDONALD'S 26. Data: Interbrand Corp.3 INTEL 30.0 Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.9 NOKIA 30.1 IBM 51.2002 1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.6 MICROSOFT 64.P. 2002 .4 MARLBORO 24.POWER BRANDS The World's 10 Most Valuable Brands .2 MERCEDES 21.

POWER BRANDS  The Successful Brands – Don’t JUST sell products – Communicate Clear Values – Stretch Across a Number of Products – Attached to Consumers/ NOT Products – Individualized Relationships .

POWER BRANDS  Allow Consumers to clearly identify and specify products which genuinely offer added value. Deep respect for the way products fit into consumer’s lives = “core” of success Consumer Relationship = Loyalty Social Changes in their favor    .

Consistency – Coke and Mc Donald’s demonstrate most   .POWER BRANDS  RIGHT MIX = Organization Excellence + Marketing Sensitivity + Long-term Commitment Brand Values Transcend National Cultures Emphasize Classlessness. Service.

POWER BRANDS  Assessing BRAND POWER BRAND DEPTH POWER BRAND WEIGHT Interbrand .

POWER BRANDS  Assessing BRAND POWER The influence or dominance that a brand has over its category or market (more than just market share) BRAND WEIGHT Interbrand .

POWER BRANDS  Assessing BRAND POWER The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category) Interbrand .

POWER BRANDS  Assessing BRAND POWER The breadth of franchise that the brand has achieved both in terms of age spread. consumer types and international appeal Interbrand .

the intimacy and the loyalty felt for the brand. The proximity.POWER BRANDS  Assessing BRAND POWER BRAND DEPTH The degree of commitment that the brand has achieved among its customer base and beyond. Interbrand .

POWER BRANDS  Assessing BRAND POWER BRAND DEPTH POWER BRAND WEIGHT Interbrand .

Power Brand = Master Brand?  Manifestation of Brand Essence  A term that USED TO apply only to overarching family brands (Nestle)  NOW applies to entire companies that rally around a single brand identity – Focus on entire value proposition rather than a single product’s functionality .

Branding the Corporation  Brands are not just products but companies: – Ford – IBM – Sony  Why has marketing refocused efforts on the potential of corporate brands? .

EC.Branding the Corporation  Cost of creating and supporting product brands has become prohibitive – $1Bil to develop a brand across US. FE  Increasing retailer power  Traditional brand management not as effective/efficient  Focus moving up the value chain .

Brand Relationship Spectrum Master Branding the Corporation Enhances Brand…  Clarity – Clear brand priorities  Synergy – Every exposure generates awareness  Leverage – Corporate brand in all Company strategies .

Branding the Corporation  Thus. stakeholders and business partners – Supplier and Vendor relationships deeper and longer term – Connects up goodwill generated by operations + adds public support/PR in crisis . Benefits of Corporate Branding: – Every marketing dollar benefits each one of a company’s division/products – Attracts and inspires employees.

Branding the Corporation  Benefits of Corporate Branding: – New product launches/extensions cheaper and quicker – Long Term strategic focus – Financial performance and value creation can be enhanced .

Branding the Corporation  What Might be Some of the Difficulties? – Organizations can be extremely complex – Wide variety of audiences make consistent proposition communication difficult – Too many businesses: Easier to build a rep & image when one is known for one product or service .

CEOs are difficult to pin down for day-to-day brand management – Business Directors often have finance or operations backgrounds – not marketing .Branding the Corporation  What Might be Some of the Difficulties? – Led from the top.

Master Brands Class Examples of Master Brands .

Branding  Different outcomes result from the marketing of a product or service because of its – brand name – brand element – brand identification – WHAT ELSE? .

Brand Equity  Common Denominator to interpret the potential effects and trade offs of various strategies and tactics Common Denominator for assessing the value of a brand  .

Marketing effects uniquely attributed to the brand Represents the ADDED VALUE endowed as a result of past marketing investments.Brand Equity  Fundamentally. stresses the importance of the role of the brand in marketing strategies. Bridge between the past and future possibilities    .

Timothy D. Inc .  These associations add value beyond the basic product functions due to past investments in marketing the Brand. Ennis. Ennis Associates.Brand Equity  A set of stored values that consumers associated with a Product/Service.

Brand Equity  How can Brand Equity be created?  How can Brand Equity be measured?  How can Brand Equity be used to expand business opportunities? .

attitude & behaviors Emotional associations with the product/services Timothy D. Ennis. reliability & convenience Defined level of satisfaction Meaningful (premium) price/value relationship Purchase & usage experiences Consumer perceptions. properties and logos Perceived quality. Inc . Ennis Associates.Brand Equity  Brand Ingredients: – – – – – – – – – Brand Name & heritage Packaging (structure & graphics) & signage Brand symbols.

Copernicus modified by Soni Simpson .Brand Equity BRAND GESTALT Brand Personality Visual Appearance Country of Origin Physical Product Attributes Quality Uses Tangible Benefits Logo Brand Customer Relationship User Imagery Emotional Benefits Kevin Clancy.

Brand Equity The Coca-Cola Brand Is…     1800’s Heritage Americana Vanilla Coke Authenticity The Real Thing Red & White Striped Can Sold Everywhere Battles with Pepsi .

Brand Equity The Mc Donald’s Brand Is…    The Big Mac French Fries Fun For Children Happy Meals Red and White Restaurants Ronald Mc Donald  Golden Arches Value for Your Money .

rational AND emotional.Brand Equity  A synthesis of all elements. End result = – appropriate – differentiated  – relevant . aesthetic. physical.

Branding Brand Imposing One’s Will OLD On SCHOOL THINKING The Consumer DIPLOMA .

with a brand – by whether it’s based on love or based on respect.Branding “ Pretty much everything today can be seen in relation to a love-respect axis. a high love rating wins. If I don’t love what you’re offering me. Saatchi and Saatchi .Kevin Roberts.” . But these days. You can plot any relationship – with a person. I’m not even interested. It used to be that a high respect rating would win.

Branding Love * Mark TradeMark Trust-Mark .

survive and flourish. .POWER BRANDS •Attached to Consumers Those Brands which are •Deep respect particularly well adapted to for the way products fit into Consumer’s liveswhich the environment and = “Core” of Success thus.

Ennis. Ennis Associates.Brand Equity  A set of stored values that consumers associated with a Product/Service.  These associations add value beyond the basic product functions due to past investments in marketing the Brand. Timothy D. Inc .

Brand Value Breakdown $US Billions 120 100 80 60 40 20 0 CocaCola J&J P&G Unilever Amazon INTANGIBLE & Goodwill Net TANGIBLE Assets .

Copyright  Consumer Value .Brand Value   Measurable Financial Value Legal Systems recognize brand value – Most countries now recognize intellectual property is REAL property w/rights of ownership  Trademarks. Patents. Designs.

Brand Value  Multiple values for a brand  Communicated through every medium from shelf to advertising to editorial to word-of-mouth.  Coca-cola – – – – – – Bottle shape Can color Logo type face Taste Youthful messages FORMULA  Are Brand Values Equal? .

. The World’s Greatest Brands.Brand Value  Three Tiers of Brand Value – Functional Values – Expressive Values – Central Values Interbrand.

Brand Value Corresponding to Brand Hierarchy Pyramid Central Expressive Functional .

. The World’s Greatest Brands.Brand Value  Functional Values: – Govern product performance    Coke refreshes its drinker Volvo gives its driver a safe ride IBM PC provides quick computing Pepsi refreshes Mercedes is as safe as Volvo Apple is as quick as IBM – Don’t differentiate products    – Brand Owner’s “bright ideas” can be instantly copied in every continent Interbrand.

creative and human values Interbrand.status and fashionable values Apple .masculine values Armani’s . .Brand Value  Expressive Values: – Say less about the product & more about the consumer – Reflect and enhance the consumer’s sense of him/herself – Provide a key source of brand differentiation    Marlboro’s . The World’s Greatest Brands.

Brand Value  Central Values: – Most Enduring – Right to the Core of the Consumer’s Belief System – At their purest = embodied in religious. The World’s Greatest Brands. Richard Branson’s Irreverent Virgin Interbrand. national or political persuasions – Comparable power = embody mass movements or cultural trends   1960’s Coke “I Like to teach the world to sing” Today= Nike “Just Do It”. .

The World’s Greatest Brands. .Brand Value Corresponding to Brand Hierarchy Pyramid Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers Central Expressive Functional Easy to deliver and explain to consumers but also easy to imitate Interbrand.

Brand Value Corresponding to Brand Hierarchy Pyramid Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers Central Beliefs & Core Values Expressive Benefits Features & Attributes Easy to deliver and explain to consumers but also easy to imitate Hierarchy : Timothy D. Ennis. Inc Functional . Ennis Associates.

Brand Value: Brand Hierarchy Pyramid The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL) Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE) Product/Service features and/or attributes that must be addressed (FUNCTIONAL) Beliefs & Core Values Benefits Features & Attributes Easy to deliver and explain to consumers but also easy to imitate .

Spicy * For everyday use * Has a lot of products I use * Easy to find when shopping * Largest variety of spices. dry seasonings.Brand Value: Brand Hierarchy Pyramid Mc Cormick: The Taste You Trust CENTRAL VALUE Beliefs and Core Values I take pleasure in how the family enjoys the meals I prepare Brand I Trust / Taste You Trust Part of making food my way Makes a meal/dish an eating pleasure Makes prepared meals taste better Brings out the best in foods Let me adjust to make it my own * Can be used with any dish * Adds flavor. and mixes EXPRESSIVE Benefits FUNCTIONAL Features & Attributes . extracts.

Brand Hierarchy Pyramid vs Product Level Potential Product Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers Augmented Product Beliefs & Core Values Expected Product Benefits Generic Product CORE BENEFIT Features & Attributes Easy to deliver and explain to consumers but also easy to imitate .

Brand Value OK…Values are Essential…BUT Are they enough? What is missing?? .

Brand Value  Values Need to be Harnessed & Honed  The Force – Brand Builder’s Vision – Big Idea – Conviction .

Counter Intuitive .Brand Vision To build successful brands while your competitors turn their brands into commodities start with a fivestep process Kevin Clancy. Copernicus.

Copernicus. Counter Intuitive .Brand Building  Kevin Clancy Copernicus’s 5 Step Process Transformational Strategy Model-Based Marketing Planning Obsessive Implementation Inspirational Vision Diagnostic Metrics Kevin Clancy.

and hopefully.Brand Vision  Brand Vision LIFTS the Brand above the mundane and functional  Appeals to Expressive and Central VALUES  Process creates a bond with the consumer. long-term loyalty .

the people perish.” Proverbs 29:18 .Brand Vision  The First thing you need to do is create a marketing vision to rally your forces. “Where there is no vision.

Brand Vision “Something supposedly seen by other than normal sight”  “The ability to see something not actually visible”  “A force or power of imagination”  “The experience of having a revelation”  “Something supernaturally revealed as to a prophet”  .

even inspirational. reporters – everyone. Counter Intuitive . managers and employees. to all of your stakeholders: customers and prospective customers. Kevin Clancy. Copernicus.Brand Vision MUST BE: Exciting. analysts.

Kevin Clancy. so bold and so audicious that expressing it – never mind executing it – has a transformational effect.e. The dream and the reality fuse. YOU NEED A BIG HAIRY VISION .Brand Vision MUST BE: So big. Copernicus. Counter Intuitive i. You start to become what you want to be.

not evolutionary . it is clearly communicated  Unique/special/different  Very specific. revolutionary. it moves people  Exciting. not general  Connotes superiority or domination  Bold and brash. it is barely attainable  Readable. it gets the blood pumping  Aspirational.Brand Vision Checklist  Inspirational & uplifting. it oozes with confidence  Causes people to want to invest in/work for the company or buy the company’s products  Transformational.

Copernicus. Counter Intuitive .Brand Vision  Let’s review some published vision statements  Assign them a college grade from 0 to 100. Kevin Clancy.

Counter Intuitive .” Grade = 63 Kevin Clancy.Brand Vision A beverage company “We exist to create value for our shareholders on a long-term basis by building a business that enhances the company’s trademarks. Copernicus.

” Big Hairy Audacious Goal David Sutton.Brand Vision A beverage experience company “To have bigger brand awareness then Coca-Cola. Zyman Marketing .

Counter Intuitive .Brand Vision A motorcycle company “Yamaha Wo Tsubusa!” Kevin Clancy. Copernicus.

Brand Vision A motorcycle company “We will crush. squash. Counter Intuitive . Copernicus. slaughter Yamaha!” Grade = 85 Kevin Clancy.

Copernicus.Brand Vision A technology company “To eclipse IBM as the #1 technology company in the world.” Grade = 91 Kevin Clancy. Counter Intuitive .

Copernicus.Brand Vision A gasoline company “We will become the dominant brand in the service station industry and beyond – with the friendliest. fastest. cleanest stations everywhere – one of the most admired brands on the planet.” Grade = 96 Kevin Clancy. Counter Intuitive .

1/1/96 . First to Fail? Real Causes of Enduring Market Lendership” MIT Sloan Management Review.VISION to ASSET LEVERAGE  Tellis and Golder five factors and rationale as the keys to enduring brand leadership Vision of the Mass Market Managerial Persistence Financial Commitment Relentless Innovation Asset Leverage Gerard Tellis & Peter Golder “First to Market.

Brand Building

Kevin Clancy Copernicus’s 5 Step Process
Transformational Strategy Model-Based Marketing Planning Obsessive Implementation

Inspirational Vision

Diagnostic Metrics

Kevin Clancy, Copernicus, Counter Intuitive

Brand Vision
MUST BE: So big, so bold and so audicious that expressing it – never mind executing it – has a transformational effect. You start to become what you want to be. The dream and the reality fuse.
Kevin Clancy, Copernicus, Counter Intuitive

i.e. YOU NEED A BIG HAIRY VISION

What is a Brand?
Potential Product Kotler’s Five Levels

of A Product

Augmented Product

BRAND DISTINCTION by Timothy D. Ennis
Products (Commodities)
No Difference Except Price

Expected Product

Brand Name
Well Known But Similar

Strong Brand
Brand Distinctive Perceived by the Consumer as Unique

Generic Product
CORE BENEFIT

OWN Something

POWER BRANDS

Assessing BRAND POWER
BRAND DEPTH

POWER

BRAND WEIGHT
Interbrand

POWER BRANDS

Assessing BRAND POWER

The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category)

Interbrand

4 MARLBORO 24.2 GE 41.17x 7 Nucor 5.POWER COMPANIES The World's 10 Most Valuable Brands 1 2 3 4 5 6 7 8 9 10 VALUE ($billions) COCA-COLA 69.06x 9 Pitney Bowes 7. Good To Great .56x 4 Gillette 7. 2002 GOOD – TO –GREAT CASES Results T +15 yr* 1 Abbott 3.9 NOKIA 30.. J.16x 8 Philip Morris 7.1 IBM 51.34x 11 Wells Fargo 3.0 DISNEY 29.6 MICROSOFT 64.98x 2 Circuit City 18.0 .P.2002 Data: Interbrand Corp.5x 3 Fannie Mae 7.16x 10 Walgreens 7.3 INTEL 30.99x Data: Ratio of cumulative stock retruns relative to the general stock market Jim Collins.2 MERCEDES 21. Morgan Chase & Co / Business Week AUGUST 5.3 McDONALD'S 26.39x 5 Kimberly-Clark 3.42x 6 Kroger 4.

crystalline concept that guided all their efforts Jim Collins. Good To Great i.Brand Vision HEDGEHOG Concept  The Essential Strategic Difference between the Good-to-Great companies: – Founded their strategies on deep understanding along three key dimensions – Translated that understanding into a simple. YOU NEED A BIG HAIRY VISION .e.

•not a strategy to be the best. What you Can be The Best in the World at What Drives Your Economic Engine Jim Collins. Good To Great . •not an intention to be the best What are you deeply Passionate About •not a plan to be the best •It is AN UNDERSTANDING of what you CAN be the best at.Brand Vision A Hedgehog Concept: •Is not a goal to be the best.

Good To Great What Drives Your Economic Engine .” …Equally important they know what they cannot be best at.Brand Vision A Hedgehog Concept “Focusing solely on what you can potentially do better than any other organization is the only path to greatness. What are you deeply Passionate About BHAG What you Can be The Best in the World at …It is an understanding Jim Collins.

Good To Great What are you deeply Passionate About BHAG What you Can be The Best in the World at What Drives Your Economic Engine .Brand Vision A Hedgehog Concept “Good to Great Companies know they should only do those things that they can get passionate about.” “They asked the right questions.” Jim Collins.

Good To Great .Brand Vision BIG HAIRY VISIONS & GOALS • Bad BHAGs set with bravado. What are you deeply Passionate About • Good BHAGS set with understanding What you Can be The Best in the World at BHAG What Drives Your Economic Engine Jim Collins.

Branding  How do we measure one brand’s performance vs another brand? .

regionally and at retailers – Data captured via Scanner data (IRI.Branding  Brand Share of Market: – Measuring a brand’s percent of sales in a market – Can be measured nationally. Nielsen)  Industry trends A  nnual reports  .

Branding  Measuring Brand Share of Market Unit $$ Sales Sales 120 $270 5 15 15 15 3 7 Unit Share 100% 4.5% 2.2% 12.6% 5.6% National Brand A Brand B Brand C .5% $$ Share 100% 5.6% 2.

Branding  Measuring Brand Share of Market Brand Sales = Brand Share Category Sales .

Branding  Are ALL Brands Created Equally?  How Does Brand Usage Compare to Category or Competitive Usage?  Are Brands Equally Strong in Different Regions?  Measuring Brand Development  Using Brand Share Metrics .

Brand Management  As much ART as SCIENCE  As much SCIENCE as ART  Achieved by combo of – Specialist talent – Long term vision – Analytic wizardry .

Yahoo…)  Creating a whole new brand – Riskiest – Most lucrative  Six to Seven of Ten brands launched fail .What is Brand Management?  Entrepreneurs are building brands (Ben & Jerry’s.

.What is Brand Management?  Majority of Brand Builders main task – take existing brand legacy – adapt brands to suit the requirements of more sophisticated consumers.

some given responsibility to modify core brand values…brand owners may run into difficulties with this later... . – Issue: Agencies are communicators.What is Brand Management?  Components of Main Brand Builders task – Embrace the increasing possibilities for communicating brand values – Acknowledge growing financial pressures on brands to make a return.

.What is Brand Management?  Marketing as Brand Management’s responsibility is to build long-term profitable growth for the company’s brands.

marketing must: – Deliver sustained value to consumers – Enhance brand equity by keeping their brands relevant. fresh and contemporary – Build consumer loyalty towards their brand .What is Brand Management?  To accomplish this.

.What is a Brand Management?  Brand Building Begins By – Understanding & anticipating the needs and desires of the consumer – Understanding the key attributes of the product(s)  Our Mission is to DISCOVER (rather than Invent) the brand’s CORE VALUES and abide by them.

fortune will smile on us – otherwise. . disaster.What is Brand Management?  Brand = Primitive God – If we keep it’s laws – And pay regularly the tributes due (mainly advertising).

What is Brand Management? “You have to maintain and replenish a brand over time or it will die” .

Brand Vision and Essence BRAND = Mindset EQUITY = Roots ESSENCE = Brand’s Soul VISION = Brand’s DNA .

in addition to innovation and communication Purpose of the Brand • Create or reinforce product distinctiveness Purpose of the Brand • Provide clear set of values along which to align all enterprise activities and investments Corporate Executive Board .What is Brand Management? Functional Excellence in Support of the Brand Primary Source of Differentiation • Product/service innovation and communication Firmwide Leadership in Stewarding the Brand Primary Source of Differentiation • Customer experience.

marketplaces or customer segments Corporate Executive Board • Control advertising and promotion planning and execution •Develop new line extensions . from communication through transaction and service •Leverage brand into new. relevant industries. and translate into expectations for each function and role •Influence customer experience across all touch-points.What is Brand Management? Functional Excellence in Support of the Brand Marketers Responsibilities • Deduce customer interests from market research data • Develop and refine brand strategy Firmwide Leadership in Stewarding the Brand Marketers Responsibilities • Generate customer insight from all points of customer contact •Develop & Refine brand values.

What is Brand Management? Functional Excellence in Support of the Brand Marketers Responsibilities • Defend marketing budget •Base decisions primarily on marketing judgement Firmwide Leadership in Stewarding the Brand Marketers Responsibilities • Champion shareholder value • Base decisions on marketing judgement supported by comprehensive customer database and/or modeling of all key inputs and outputs •Determine success using a dashboard of selected intermediate and bottomline measures •Determine success through intermediate measures (awareness. recall. interrelated brands . unrelated brands Brand Architecture • Single brand or few. brand equity) Brand Architecture • Multiple.

What is Brand Management? Functional Excellence in Support of the Brand Locus of Brand Ownership • Brand Managers Firmwide Leadership in Stewarding the Brand Locus of Brand Ownership • Chief Marketing Officer Corporate Executive Board .

the highest priority is to enlist the support of each member of the team .What is Brand Management?  Brand Management is reliant on entire corporation and agency teams  In Operationalizing the brand.

What is Brand Management? Innovative Analysts Archeologists Sociologists Brand Champions Politicians General Managers Templar Knights of Equity Evangelists Brand Stewards .

Strategic Brand Management Parallel Path Strategic Growth Model (Soni’s Standard Operating Procedure) .

Guiding Focused Strategic Growth Parallel Path Process Building Brands NOT Growing Products PATH 2: We’ve got a Business to Run $ $ PATH 1: Strategic Plan for Long Term Explosive Growth .

& buyers/brokers #1 Review & analyze business and consumer trends Read all research on-hand & obtained Full Business Immersion Path 1: Strat Plan for High Growth . all vendors.Guiding Focused Strategic Growth Parallel Path Process Interview ALL key internal players.

Guiding Focused Strategic Growth Parallel Path Process #5 SET STRATEGIC PLAN #4 #3 #2 Full Team Brainstormings Vision >>Objectives >>Strategies Brand Essence/Consumer Insight #1 Full Business Immersion Path 1: Strat Plan for High Growth .

Guiding Focused Strategic Growth Parallel Path Process ASK & Listen Focus on Immediate Business Issues Ensure All Priorities & Deadlines are met #1 Work Current Plan Short Term: Running The Business .

Guiding Focused Strategic Growth Parallel Path Process #5 ADJUST SHORT TERM PLAN #4 #3 #2 Full Team Brainstormings Strat & Tactic Successes/Failures Facts vs Folklore #1 Work Current Plan Path 2: ST Running The Business .

Guiding Focused Strategic Growth Parallel Path Process $$ #5 SET STRATEGIC PLAN ADJUST SHORT TERM PLAN #4 #3 #2 Full Team Brainstorm Vision >>Objectives >>Strategies Strat & Tactic Successes/Failures Brand Essence/Consumer Insight Facts vs Folklore #1 Full Business Immersion Path 1: Strat Plan for High Growth Work Current Plan Path 2: ST Running The Business .

Guiding Focused Strategic Growth Parallel Path Process $$ #5 SET STRATEGIC PLAN ADJUST SHORT TERM PLAN #4 #3 #2 Full Team Brainstorm Vision >>Objectives >>Strategies Brand Essence/Consumer Insight #1 Full Business Immersion Path 1: Strat Plan for High Growth Building Brands Strat & Tactic Successes/Failures NOT Facts vs Folklore Growing Products Work Current Plan Path 2: ST Running The Business .

Strategic Brand Management In Class Exercises: Positioning Case Study Product and Brand Hierarchy Exercise Self .

Strategic Brand Management SELF POSITIONING Develop your own personal positioning statement to share with your group this week. . Have your group provide you feedback this week. Define your target audience in the process: what they need to know and why? What makes you unique and why? Have in writing to turn in and share next week.

or related services that distinguish the product from competitors Attributes and Characteristics that buyers normally expect and agree to when they purchase a product Augmented Product Expected Product Generic Product CORE BENEFIT Basic Version of the product containing only those elements absolutely necessary to function. or related services that distinguish the product from competitors Additional product attributes.What is a Product?  Kotler’s Five Levels to a Product: Potential Product Additional Product attributes. benefits. benefits. No distinguishing features. The Fundamental Need or Want that consumers satisfy by consuming the product or service .

PRODUCT LEVEL LEVEL BRAND Name/Positioning Potential Product Television or Juice Drink Augmented Product Expected Product Generic Product Core Benefit .

Brand Value: Brand Hierarchy Pyramid The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL) Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE) Product/Service features and/or attributes that must be addressed (FUNCTIONAL) Beliefs & Core Values Benefits Features & Attributes Easy to deliver and explain to consumers but also easy to imitate .

BRAND HIERARCHY LEVEL BRAND Name/Positioning Central Beliefs and Core Values Expressive Benefits Functional Features and Attributes Television or Juice Drink .

Strategic Brand Management Did your output change with the Brand Hierarchy vs the Product Level approach? What about the Consumer? How did you create this brand without the Consumer Insights? What about your BHV? .

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