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ADOPT A BRAND!
BRAND MANAGEMENT [ELECTIVE]
DEVELOPING & MANAGING BRANDS
BRAND MANAGEMENT [ELECTIVE]
Developing & Managing Brands
Since the1990s companies have been well aware that brands are an asset… [to] be reinforced and nurtured by tangible innovations and intangible added values.
The Rules of Brand Management
1. Act as leader, be passionate about raising category standards. 2. Sustain brands through innovations in line with their positioning.
3. Create direct ties with end customers, especially in markets where the trade pushes its brands. 4. Deliver personalized services.
7. Encourage communities that share your values. 6.The Rules of Brand Management 5. Reward customers‟ who become active promoters of your brand. . 8. Quickly globalize the brand and its products. Be ethical: big is not beautiful any more.
NEW Rules of Brand Management needed… WHY? The traditional model for managing brands. WHY? . developed & practiced by successful global FMCG companies like P&G and Unilever. is now outdated & obsolete.
2. A SUPERIOR PRODUCT was a winner as it responded better to a customer‟s expressed need. Linear thinking works: Promotions Trial Repurchase Loyalty .The New Rules of Brand Management: The Traditional Model The Traditional Model was based on the belief that: 1.
4.promotions making customers even more sensitive to . Depleted loyalty . 2.The New Rules of Brand Management FOUR Stumbling Blocks 1. meaningful differences between products. Split audiences who are also out of the range of mass media. [Superior product?] Absence of durable. 3. superstores/ wholesalers pushing own products. Shortage of shelf space.
. Chinese/ Korean imports replacing many B2B/ B2C brands.The New Rules of Brand Management: There are Cheaper Alternatives! Cheaper alternatives to major brands now hold significant market shares in most sectors: from FMCG sector to Electronics.
Tropicana was the leading juice brand at Tesco‟s. . Now Tesco Finest is replacing Tropicana. Now.The New Rules of Brand Management: Surge in Private Labels In Carrefour outlets (UK): Danone yogurts had replaced Nestle. Carrefour yogurts have replaced Danone.
Cheaper imports demonstrate that “traditional brand” = “universal brand” i.different brands excel in different price segments.e. . 2. Market‟s are now more & more segmented by price . 3. Ability of brands to be present & visible in every segment is A BIG CHALLENGE. the response to all customers‟ needs.The New Rules of Brand Management: The Market is Changing 1.
• Pampers: keeps the baby must be drier. • Ariel washes better. • P&G only launched mass-consumption products that spoke for themselves & made the difference in use. & the difference must be visible to the naked eye… .How P&G Has Been Managing its Brands! At P&G every one of its brands has to be the superior product.
How P&G Manages its Brands • Sunny Delight. an orange-flavored drink without real oranges. . P&G use different rules: superior claim is ineffective. must taste infinitely better on the tongue… • WILL THAT STRATEGY WORK IN FUTURE? In its luxury products division – brands like Hugo Boss & Lacoste.
” WHY? Investing for ever & ever in making a Michelin tyre safer would result in prohibitively higher price… & affect sales.The New Rules of Brand Management: Is A Great Product = A Great Brand? Maybe! Continued “ad infinitum”… it may lead the brand to deliver “diminishing returns. .
linear idea: “BEST PRODUCT…BUY!” . One-dimensional marketing is based on a single.“One Dimensional Marketing WHAT IS: “ONE-DIMENSIONAL MARKETING”? A One-Dimensional figure is A LINE. a ray etc. a line segments.
Cost of marginal improvements is becoming higher & higher. MAINTAIN & SUSTAIN. A superior product is hard to CREATE. but the „benefit‟ increment goes unnoticed. .Limits to “one dimensional” marketing “One-dimensional marketing” strategy has reached its limits! WHY? 1. Customers notice the higher price easily. 3. 2.
Over 3 decades. .Limits to “one dimensional” marketing EXCEPTION: Gillette‟s „one-dimensional model‟ still works. through continuous innovation: GII… Contour… Sensor… Sensor Excel… Mach3… Fusion/ Fusion Power… Proglide. …the art of „planned obsolescence‟. it has increased prices significantly & out-run competition.
trust. . pride. can be easily substituted.g. Brand with no „intangible value‟ e. or „familiarity capital‟.Limits to “one dimensional” marketing WHEN does a BEST PRODUCT fail? When best is defined without taking the customer‟s point of view. emotion. by a cheaper alternative. Customers assess brands based on “tangible” as well as “intangible”.
New Brand Realities! NEW APPROACH TO BRAND “ The MANAGEMENT is the outcome of the adaptation of companies to the new business environment. HOW HAS THE BUSINESS ENVIRONMENT CHANGED? “ .
shopping centers.New Brand Realities! A. arcades. iii. . Service and variety have become important considerations. factory outlets draw shoppers. ii. Shoppers & consumers are often not the same „person‟. THE RISE OF THE SHOPPER: i. Shopping is no longer a race – it is either a chore or a leisure activity. Shopping a favorite past-time: malls.
The mass-market is dead or dying: A SMALLER PERCENTAGE OF CONSUMERS ARE CONSUMING A HIGHER PERCENTAGE OF PRODUCT… In France. . 8% of Diet Coke buyers consume 40% of the volume.New Brand Realities! B. FRAGMENTING MARKETS & VOLUMES: i.
& different demographics (age. “Segments” have to be BROKEN DOWN into “Fragments”: Peugeot launched its 207 in seven versions. • Ralph Lauren has 10 sub-brands to cater to needs of weekdays & weekends.New Brand Realities! B. gender). FRAGMENTING MARKETS & VOLUMES: • ii. .
Super.& Hyper-markets investing in brands & match Mass brands.Is their future secure? . WHAT IS THE FUTURE OF BRANDS Nutella.New Brand Realities! iii. Mars. Boursin are LIKE… „single product specialty brands‟ . Retailer brands dominating in superstores: Retailers. Orangina. M&M.
iii. FRAGMENTING MEDIA: CHALLENGE OR OPPORTUNITY: i. . TiVo in 32% households in the US creating TV without advertising. More TV programs & hours to choose from.New Brand Realities! C. ii. Internet a major rival of network TV: In Europe 50% of media consumption is now interactive.
com some months later. FRAGMENTING MEDIA: CHALLENGE OR OPPORTUNITY: Google bought MySpace in 2006 & YouTube. Google has launched Google TV: a totally a la carte service.New Brand Realities! C. IS FRAGMENTATION A CHALLENGE OR OPPORTUNITY? .
New Brand Realities! C. „New media‟ is growing rapidly. but it is unlikely to completely dislodge major traditional media such as TV or Print. Print media: going online! . FRAGMENTING MEDIA: CHALLENGE OR OPPORTUNITY: iv. v.
News formats. news/ videos on Websites. news on Twitter etc… . iReporters. FRAGMENTING MEDIA: CHALLENGE OR OPPORTUNITY: vi.New Brand Realities! C. TV is reasserting itself as an „AUDIENCE AGGREGATOR‟ – with redesigned Talk Shows.
CONSUMER EMPOWERMENT Technology rewriting rules of engagement: i.New Brand Realities! D. Nearly 20% internet users visit sites dedicated for comment on products. iii. . ii. Traditional media pick up conversations from blogs. More mobile phones sold than TV sets.
Blogs = the truth of the market. .New Brand Realities! D. offering a variety of services. information & games. Brand websites have become the official “consumer magazines”. CONSUMER EMPOWERMENT Internet is no longer a vision – it is easy. practical.
iPod & iTunes users create own “programming”. minimal between branded & unbranded products. Growing demand for: Product personalization. THE BIRTH OF THE “CHOICE ECONOMY” Brands have lost their leverage [no quality differential between brands. • • . Services & image-based „social differentiation‟.New Brand Realities! E.
• . Internet: a major facilitator of interconnected marketing communities. AfricanAmericans. affect brand creation & communication. Chinese Americans.New Brand Realities! F. THE POWER OF COMMUNITIES: • Community marketing has a special status in the US: Hispanics.
Nike‟s involvement at street level with rappers & sports enthusiasts is community marketing.New Brand Realities! THE POWER OF COMMUNITIES: Phone companies offer services to sports fans by providing updates on matches. Danone & Nestle websites are especially designed to advise young mothers. .
WHY? • Over-dependent on big supermarkets. more & more selfservice stores are promoting THEIR OWN brand.New Brand Realities! G. . • L‟Oréal successful as a brand for selfservice stores. NOW.THE LIMITS OF MONODISTRIBUTION • Coca-Cola‟s strength is its multiple distribution channels – Virgin Cola unable to compete in distribution • Danone is weak.
Building the Brand… … in Reverse! .
Unfortunately. the traditional model is now being openly questioned! WHY? It has become too predictable! . Launch marketing communication. Develop Product/ Brand 2. Achieve optimal distribution 3.The Traditional Way of Building the Brand… STEPS: 1.
Experts suggest an alternative approach… Building the Brand… …in Reverse …starting much early ….with communication. .
Building the Brand… in Reverse Idea popularized by a French expert as the “Concept of Brand In Reverse”. Convert a brand‟s first set of customers into “brand ambassadors”… GET A CONVERSATION STARTED. HOW DOES IT WORK? 1. 2. . „Rearrange” sequence of brand introduction.
packaging etc.) that it is necessary to inject the „power of contagion‟ – not at the end. “ . when it is too late. What Comes First? “ It is at the moment of conception of the product or service (of choosing the name.Building the Brand in Reverse: So.
.. 12. What Comes First? Nike launched its Converse brand of shoes using a „community approach‟ by creating the „CONVERSE GALLERY‟ involving customers.Building the Brand in Reverse: So. 2013. Advertising is not used for Converse. 2013. Converse & Maison Martin Margiela celebrate the launch of a new collection: Sep 12. UPDATE: On Sep.
for viewers to see at their leisure and „experience‟ the performance of the car.Building the Brand in Reverse: So. 5-. uploaded long-duration (4-5 min) films on the net. 7Series in the US. The response was simply outstanding! . What Comes First? BMW before launching the 3-.
a passion & a big belief! .From Brand Power to Brand Passion For a new & highly innovative product it is easier to be „differentiated‟ – but for how long? Too many brands aim only at „preference‟ via product or service – big brands sell a BIG IDEA! Successful major brands today. are based on an intensely personal feeling .
They succeed.From Brand Power to Brand Passion Entrepreneurs like to change the world with their ideas. . because they turn their idea into a source of passion for others! For L‟Oreal: a woman‟s happiness can only be found in science and its ability to turn back the years.
. For Toyota QUALITY is the obsession.From Brand Power to Brand Passion For Nissan „low supplier prices‟ lead to LOWER PRICED CARS.
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