T 1224418616 - 7380064 Strategic Brand Management by Soni Simpson 2003

Strategic Brand Management
WELCOME!!
Class #1- Sept 11th, 2003
Soni Simpson
Brand Team Introductions
Name
Communicate your
Personal Demographics personal brand essence
Who You Work for and call to action
What You Do All Day In :30 please
Undergraduate Focus
What Degree Youre Working on
What Courses Youve Completed/Are In
Personal Psychographics
Something Fun/Unique About Yourself
What Motivates You
Why Youre Here Tonight
Course Overview
What Do You Think Youre Going to Learn this
Quarter?
Were going to define and refine our thinking about

brands, what they are and how to manage them
Well build off text, industry experts & studies,

guest lecturers, real life experience and class
exercises
Course Overview
Ten Weeks + Final
1. Brands
2. Consumer
3. Strategy
4. Marketing Mix Tactics
5. Mid term/guest
6. Metrics
7. Portfolio Management
8. Expansion
9. Global
10. Personal Branding/Wrap Up
11. Final
Course Overview
Typical Class Framework
6:00 Turn In Assignment

6-7:15 Theory Lecture/Discussion
7:15-7:30 Break
7:30-8 Homework Discussion
8-8:45 In Class Case Groups
8:45-9 Wrap Up/Next Assignment
9-9:15 Slush Pad
Course Overview
Grading Rubrix
Weekly Assignments 15%

Short Group Case Study 15%
Mid Term Exam 20% Assignments
Due at 6pm
Final Case Study Project 20%
Final Exam 20%
Professionalism 10%
Lets Get Started

09/10/03 AGENDA
TACTICAL Application
Top Brands
Brand Share
Brand vs Product vs Company Brand Management
Product Levels Brand Management Task Models
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
The World's 10 Most Valuable Brands - 2002
VALUE ($billions)
1 COCA-COLA 69.6 Interbrands Assessment
2 MICROSOFT 64.1
3 IBM 51.2
is of Brand Power the
4 GE 41.3 fullest possible view of
5 INTEL 30.9 each brands strengths
6 NOKIA 30.0 and potential as a
7 DISNEY 29.3
8 McDONALD'S 26.4
marketing and financial
9 MARLBORO 24.2 asset.
10 MERCEDES 21.0
Data: Interbrand Corp., J.P. Morgan Chase & Co /
Business Week AUGUST 5, 2002
The Top 10 Global Marketers - 2002
Ad Spending Outside US (MMs)
1 UNILEVER 2,967
2 PROCTOR & GAMBLE 2,610
3 NESTLE 1,560
4 TOYOTA 1,345
5 VOLKSWAGON 1,290
6 COCA-COLA CO. 1,176
7 FORD MOTOR CO. 1,127
8 GENERAL MOTORS 1,028
9 PSA PEUGEOT CITROEN 1,004
10 FIAT 998
Data: Global Marketers (Ad Age Global, 11/01)
Ranks advertisers by estimated total measured advertising outside the US
Ad Age Fact Pack; Sept 9, 2002
The Top 10 Global Marketers - 2002 The World's 10 Most Valuable Brands - 2002
Ad Spending Outside US (MMs) VALUE ($billions)
1 UNILEVER 2,967 1 COCA-COLA 69.6
2 PROCTOR & GAMBLE 2,610 2 MICROSOFT 64.1
3 NESTLE 1,560 3 IBM 51.2
4 TOYOTA 1,345 4 GE 41.3
5 VOLKSWAGON 1,290 5 INTEL 30.9
6 COCA-COLA CO. 1,176 6 NOKIA 30.0
7 FORD MOTOR CO. 1,127 7 DISNEY 29.3
8 GENERAL MOTORS 1,028 8 McDONALD'S 26.4
9 PSA PEUGEOT CITROEN 1,004 9 MARLBORO 24.2
10 FIAT 998 10 MERCEDES 21.0
Data: Global Marketers (Ad Age Global, 11/01) Data: Interbrand Corp., J.P. Morgan Chase & Co /
Ranks advertisers by estimated total measured advertising outside the US Business Week AUGUST 5, 2002
Ad Age Fact Pack; Sept 9, 2002
The Top 10 US Mega Brands - 2002
US Ad Spending ($MM)
1 AT&T 996.6
2 Verizon 824.4
3 Chevrolet 780.4
4 Ford 655.9
5 Mc Donalds 635.1
6 Sprint 620.4
7 Toyota 568.3
8 Sears 511.5
9 Dodge 499.2
10 Chrysler 474.4
Data: Megabrands, AA July 22, 2002
Media Dollars excluding promotion & direct marketing expenses
Ad spending for CY2001
The Top 10 US Advertisers - 2002
US Ad Spending ($BIL)
1 General Motors 3.37
2 P&G 2.54
3 Ford 2.41
4 Pepsi Co 2.21
5 Pfizer 2.19
6 Daimler-Chrysler1.99
7 AOL Time Warner 1.89
8 Philip Morris 1.82
9 Walt Disney 1.76
10 Johnson & Johnson 1.62
Data: 100 Leading National Advertisers (AA June 24, 2002)

Ad spending for CY2001 includes advertising, promotion and direct marketing expenses
The Top 10 US Mega Brands - 2002 The Top 10 US Advertisers - 2002
US Ad Spending ($MM) US Ad Spending ($BIL)
1 AT&T 996.6 1 General Motors 3.37
2 Verizon 824.4 2 P&G 2.54
3 Chevrolet 780.4 3 Ford 2.41
4 Ford 655.9 4 Pepsi Co 2.21
5 Mc Donalds 635.1 5 Pfizer 2.19
6 Sprint 620.4 6 Daimler-Chrysler1.99
7 Toyota 568.3 7 AOL Time Warner 1.89
8 Sears 511.5 8 Philip Morris 1.82
9 Dodge 499.2 9 Walt Disney 1.76
10 Chrysler 474.4 10 Johnson & Johnson 1.62
Data: Megabrands, AA July 22, 2002
Media Dollars excluding promotion & direct marketing expenses Data: 100 Leading National Advertisers (AA June 24, 2002)
Ad spending for CY2001 Ad spending for CY2001 includes advertising, promotion and direct marketing expenses
What is a Product?
Kotlers Potential Product
Five
levels to a Augmented Product
product:
Expected Product
Generic Product
CORE BENEFIT
What is a Product?
Five
product:
The
Expected Product Fundamental
Need or Want
that consumers
Generic Product satisfy by
consuming the
product or
CORE BENEFIT service
What is a Product?
Five
Basic Version
product: of the product
containing only
Expected Product those elements
absolutely
necessary to
Generic Product function. No
distinguishing
features.
CORE BENEFIT
What is a Product?
Kotlers Potential Product Attributes and
Five Characteristics
that buyers
levels to a Augmented Product normally expect
product: and agree to
when they
Expected Product purchase a
product
Generic Product
CORE BENEFIT
What is a Product?
Kotlers Potential Product Additional
product
Five attributes,
levels to a Augmented Product benefits, or
related services
product: that distinguish
the product
Expected Product
from
competitors
Generic Product
CORE BENEFIT
What is a Product?
Kotlers Potential Product All the
augmentations
Five and
levels to a Augmented Product transformations
that a product
product: might
ultimately
Expected Product
undergo in the
future
Generic Product
CORE BENEFIT
What is a Product?
All the augmentations and
transformations that a product
might ultimately undergo in the
Five future
Additional product attributes,

levels to a Augmented Product benefits, or related services that
distinguish the product from
product: competitors
Attributes and Characteristics that

Expected Product buyers normally expect and agree
to when they purchase a product
Basic Version of the product
Generic Product containing only those elements

absolutely necessary to function.
No distinguishing features.
The Fundamental Need or Want

CORE BENEFIT that consumers satisfy by
consuming the product or service
What is a Brand?
Not simply a product -- anything offered to a market for
attention, acquisition, use, or consumption that might
satisfy a need or want.
A product can be:
Physical good
Service
Retail Store
Person
Organization
Place
Idea
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.
Timothy D. Ennis, Ennis Associates, Inc

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

Why Does A Brand Matter?
MANUFACTURERS CONSUMERS
ID to simplify handling or ID Product Source
tracing Assignment of
Legal protection of unique
responsibility to maker
features
Risk reducer
Signal of quality level to
satisfied customers Search cost reducer
Means of endowing Promise, bond, or pact
products w/unique w/make of product
associations Symbolic Device
Competitive Advantage
Signal of Quality
Financial Returns
What is a Brand?
Products dont exist in a void
They are bought because consumers have
found something they relate to in them,
something which they value
Brand = Credible Guarantee
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. This is critical to keeping
competition from the consumers consideration.
Products Brand Strong Brand

(Commodities) Name Brand
Perceived by the
No Difference Well Known Distinctive Consumer as
Except Price But Similar Unique
What is a Brand?
Relative Brand Distinction
A brands preference is primarily built through
differentiation and relevance
Insulate product from competition
OWN Something

Perceived by the
What is a Brand?
Kotlers Five Levels
Potential Product
of A Product
Augmented Product
BRAND DISTINCTION by Timothy D. Ennis

Expected Product Perceived by the
Generic Product
CORE BENEFIT
What is a Brand?
Kotlers Five Levels
Potential Product
of A Product
Augmented Product

OWN Something
Generic Product
CORE BENEFIT
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.
Case Groups Definition:

Product
Service
Corporation
Corporation vs
Service vs Product
vs Brand
Alternative Branding Models
Company Company is equal Brands dominate

dominates Brands to Brands the Company
American Express (cards) Anheuser Busch = Budweiser Skol (Am Bev)
BMW (Motorcycles) Campbell Soup = Godiva Claridge Hotel (Savoy)
Colgate (Total toothpaste) Chrsyler = Jeep Crest (P&G)
Disney (Films) Estee Lauder = Clinique Healthy Choice (Con-Agra)
General Electric (appliances) Kraft = Maxwell House Hidden Valley Ranch
(Clorox)
IBM (Technology) PepsiCo = Mountain Dew
Kleenix (Kimberly-Clark)
LOreal (Cosmetics) Time Warner = Warner Bros
Marlboro (Philip Morris)
Sony (Electronics) 3M = Scotch Tape
MCA Records (Universal
Holiday Inn (Crowne Plaza) Marriott = Courtyard Studios)
Wranlger (VF Jeans)
Kevin Clancy, Copernicus

POWER BRANDS
The World's 10 Most Valuable Brands - 2002

VALUE ($billions)
1 COCA-COLA 69.6 Interbrands Assessment
2 MICROSOFT 64.1
3 IBM 51.2
is of Brand Power the
4 GE 41.3 fullest possible view of
5 INTEL 30.9 each brands strengths
6 NOKIA 30.0 and potential as a
7 DISNEY 29.3
8 McDONALD'S 26.4
marketing and financial
9 MARLBORO 24.2 asset.
10 MERCEDES 21.0
POWER BRANDS
The Successful Brands
Dont 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
consumers lives = core of success
Consumer Relationship = Loyalty
Social Changes in their favor
POWER BRANDS
RIGHT MIX = Organization Excellence +
Marketing Sensitivity + Long-term
Commitment
Brand Values Transcend National Cultures
EmphasizeClasslessness, Service,
Consistency
Coke and Mc Donalds demonstrate most
POWER BRANDS
Assessing BRAND POWER
BRAND DEPTH
BRAND LENGTH POWER BRAND BREADTH
BRAND WEIGHT
Interbrand
POWER BRANDS
The influence or dominance

that a brand has over its
category or market (more than
just market share)
BRAND WEIGHT
Interbrand
POWER BRANDS
The stretch or extension that

the brand has achieved in the
past or is likely to achieve in
BRAND LENGTH the future (especially outside
its original category)
Interbrand
POWER BRANDS
The breadth of franchise that

the brand has achieved both in
terms of age spread, consumer
types and international appeal BRAND BREADTH
Interbrand
POWER BRANDS
BRAND DEPTH
The degree of commitment that the

brand has achieved among its
customer base and beyond. The
proximity, the intimacy and the
loyalty felt for the brand.
Interbrand
POWER BRANDS
BRAND DEPTH
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 products 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?
Cost of creating and supporting product
brands has become prohibitive
$1Bil to develop a brand across US, EC, 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
Thus, Benefits of Corporate Branding:
Every marketing dollar benefits each one of a
companys division/products
Attracts and inspires employees, 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:
New product launches/extensions cheaper and
quicker
Long Term strategic focus
Financial performance and value creation can be
enhanced
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
What Might be Some of the Difficulties?
Led from the top. CEOs are difficult to pin
down for day-to-day brand management
Business Directors often have finance or
operations backgrounds not marketing
Master Brands
Class Examples of Master Brands
Branding
Differentoutcomes 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
Brand Equity
Fundamentally, stresses the importance of the role
of the brand in marketing strategies.
Marketing effects uniquely attributed to the brand
Represents the ADDED VALUE endowed as a

result of past marketing investments.
Bridge between the past and future possibilities

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.

Brand Equity
How can Brand Equity be created?
How can Brand Equity be measured?
How can Brand Equity be used to expand
business opportunities?
Brand Equity
Brand Ingredients:
Brand Name & heritage
Packaging (structure & graphics) & signage
Brand symbols, properties and logos
Perceived quality, reliability & convenience
Defined level of satisfaction
Meaningful (premium) price/value relationship
Purchase & usage experiences
Consumer perceptions, attitude & behaviors
Emotional associations with the product/services

Brand Equity
BRAND GESTALT
Brand
Personality
Visual Physical Logo

Appearance Product
Attributes
Quality Brand
Country of Customer
Origin Uses Relationship
User Emotional
Imagery Tangible
Benefits
Benefits
Kevin Clancy, Copernicus

modified by Soni Simpson
Brand Equity
The Coca-Cola Brand Is
1800s Heritage The Real Thing

Americana Red & White Striped Can
Vanilla Coke Sold Everywhere
Authenticity Battles with Pepsi
Brand Equity
The Mc Donalds Brand Is
The Big Mac Happy Meals

French Fries Red and White Restaurants
Fun For Children Ronald Mc Donald
Golden Arches Value for Your Money
Brand Equity
A synthesis of all elements, physical,
aesthetic, rational AND emotional.
End result =
appropriate
differentiated
relevant
Branding
Brand Imposing Ones Will

OLD
On
SCHOOL
THINKING
The Consumer
DIPLOMA
Branding
Pretty much everything today can be seen in
relation to a love-respect axis. You can plot any
relationship with a person, with a brand by
whether its based on love or based on respect. It
used to be that a high respect rating would win.
But these days, a high love rating wins. If I dont
love what youre offering me, Im not even
interested.
- Kevin Roberts, Saatchi and Saatchi
Branding
Love *
Mark
TradeMark
Trust-Mark
POWER BRANDS
Those Brands
Attached which are
to Consumers
Deep respect
particularly well adapted
for the way products to
the environment
fit into Consumersand
liveswhich
= Core of Success
thus, survive and flourish.
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.

Brand Value Breakdown
$US Billions
120
100
80
INTANGIBLE &
60 Goodwill
Net TANGIBLE
40
Assets
20
0
Coca- J&J P&G Unilever Amazon
Cola
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, Copyright
Consumer Value
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?
Brand Value
Three Tiers of Brand Value
Functional Values
Expressive Values
Central Values
Interbrand; The Worlds Greatest Brands.

Brand Value Corresponding to
Brand Hierarchy Pyramid
Central
Expressive
Functional
Brand Value
Functional Values:
Govern product performance
Coke refreshes its drinker
Volvo gives its driver a safe ride
IBM PC provides quick computing
Dont differentiate products
Pepsi refreshes
Mercedes is as safe as Volvo
Apple is as quick as IBM
Brand Owners bright ideas can be instantly copied in
every continent
Brand Value
Expressive Values:
Say less about the product & more about the
consumer
Reflect and enhance the consumers sense of
him/herself
Provide a key source of brand differentiation
Marlboros - masculine values
Armanis - status and fashionable values
Apple - creative and human values

Brand Value
Central Values:
Most Enduring
Right to the Core of the Consumers Belief System
At their purest = embodied in religious, national or
political persuasions
Comparable power = embody mass movements or
cultural trends
1960s Coke I Like to teach the world to sing
Today= Nike Just Do It, Richard Bransons Irreverent Virgin

Very meaningful in
differentiating our Brand but
very difficult to deliver
consistently to our
Central consumers
Expressive
Functional Easy to deliver and explain

to consumers but also easy to
imitate

Very meaningful in
consistently to our
Central Beliefs & consumers
Core
Values
Expressive Benefits
Features & Easy to deliver and explain

Functional to consumers but also easy to
Attributes imitate
Hierarchy : Timothy D. Ennis, Ennis Associates, Inc

Brand Value:
Very meaningful in
The emotional beliefs and
values that consumers feel
are being addressed by our
consistently to our
brand (CENTRAL)
Beliefs & consumers
Core
Values
The functional and emotional
benefits that our
product/services provides to
the consumer
Benefits
(EXPRESSIVE)
Product/Service features Features & Easy to deliver and explain

and/or attributes that must be to consumers but also easy to
addressed (FUNCTIONAL)
Attributes imitate
Brand Value:
Mc Cormick: The Taste You Trust
I take
CENTRAL VALUE pleasure in
how the
Beliefs and Core Values family enjoys
the meals I
prepare
EXPRESSIVE Brand I Trust / Taste You Trust
Benefits Part of making food my way

Makes a meal/dish an eating pleasure
Makes prepared meals taste better
Brings out the best in foods
FUNCTIONAL
Let me adjust to make it my own * Can be used with any dish
Features & Attributes * Adds flavor, Spicy * For everyday use * Has a lot of
products I use * Easy to find when shopping *
Largest variety of spices, extracts, dry seasonings, and mixes
Brand Hierarchy Pyramid vs
Product Level
Very meaningful in
Potential Product differentiating our Brand but
consistently to our
Augmented Product Beliefs & consumers
Core
Values
Expected Product
Benefits
Generic Product
Features & Easy to deliver and explain
to consumers but also easy to
Attributes imitate
CORE BENEFIT
Brand Value
OKValues are EssentialBUT

Are they enough?
What is missing??
Brand Value
ValuesNeed to be Harnessed & Honed
The Force
Brand Builders Vision
Big Idea
Conviction
Brand Vision
To build successful brands while

your competitors turn their brands
into commodities start with a five-
step process
Kevin Clancy, Copernicus, Counter Intuitive
Brand Building
Kevin Clancy Copernicuss 5 Step Process
Transform- Model-Based Obsessive

Inspirational Diagnostic
ational Marketing Implement-
Vision Metrics
Strategy Planning ation

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,
and hopefully, long-term loyalty
Brand Vision
TheFirst thing you need to do is create a
marketing vision to rally your forces.
Where there is no vision, the

people perish.
Proverbs 29:18
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
Brand Vision
MUST BE:
Exciting, even inspirational, to all of your
stakeholders: customers and prospective
customers, managers and employees,
analysts, reporters everyone.

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

Brand Vision Checklist
Inspirational & uplifting; it moves people
Exciting; it gets the blood pumping
Aspirational; it is barely attainable
Readable; it is clearly communicated
Unique/special/different
Very specific, not general
Connotes superiority or domination
Bold and brash; it oozes with confidence
Causes people to want to invest in/work for the company or buy
the companys products
Transformational, revolutionary, not evolutionary
Brand Vision
Lets review some published
vision statements
Assign them a college grade from
0 to 100.

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 companys trademarks.
Grade = 63

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

Brand Vision
A motorcycle company
Yamaha Wo Tsubusa!

Brand Vision
A motorcycle company
We will crush, squash, slaughter Yamaha!
Grade = 85

Brand Vision
A technology company
To eclipse IBM as the #1 technology
company in the world.
Grade = 91

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

VISION to ASSET LEVERAGE
Tellis and Golder five factors and rationale
as the keys to enduring brand leadership
Vision of Managerial Financial Relentless Asset

the Mass Persistence Commit- Innovation Leverage
Market ment
Gerard Tellis & Peter Golder First to Market, First to Fail? Real Causes of
Enduring Market Lendership MIT Sloan Management Review, 1/1/96
Brand Building
Kevin Clancy Copernicuss 5 Step Process
Transform- Model-Based Obsessive

Inspirational Diagnostic
ational Marketing Implement-
Vision Metrics
Strategy Planning ation

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

What is a Brand?
Kotlers Five Levels
Potential Product
of A Product
Augmented Product

OWN Something
Generic Product
CORE BENEFIT
POWER BRANDS
BRAND DEPTH
BRAND WEIGHT
Interbrand
POWER BRANDS
The stretch or extension that

the brand has achieved in the
past or is likely to achieve in
BRAND LENGTH the future (especially outside
its original category)
Interbrand
POWER COMPANIES
The World's 10 Most Valuable Brands - 2002 GOOD TO GREAT CASES
VALUE ($billions) Results T +15 yr*
1 COCA-COLA 69.6 1 Abbott 3.98x
2 MICROSOFT 64.1 2 Circuit City 18.5x
3 IBM 51.2 3 Fannie Mae 7.56x
4 GE 41.3 4 Gillette 7.39x
5 INTEL 30.9 5 Kimberly-Clark 3.42x
6 NOKIA 30.0 6 Kroger 4.17x
7 DISNEY 29.3 7 Nucor 5.16x
8 McDONALD'S 26.4 8 Philip Morris 7.06x
9 MARLBORO 24.2 9 Pitney Bowes 7.16x
10 MERCEDES 21.0 10 Walgreens 7.34x
11 Wells Fargo 3.99x
Data: Ratio of cumulative stock retruns relative to the general stock market
Jim Collins, Good To Great
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,
crystalline concept that guided all their efforts

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

Brand Vision
A Hedgehog Concept
Focusing solely on what What are you deeply
you can potentially do Passionate About
better than any other
organization is the only
path to greatness.
BHAG
Equally important they What you Can What Drives
know what they cannot be The Best in Your
be best at. the World at Economic
Engine
It is an understanding
Brand Vision
A Hedgehog Concept
Good to Great What are you deeply
Companies know they Passionate About
should only do those
things that they can get
passionate about.
BHAG
What you Can What Drives

They asked the right be The Best in Your
questions. the World at Economic
Engine
Brand Vision
BIG HAIRY
VISIONS &
GOALS What are you deeply
Bad BHAGs Passionate About
set with
bravado,
Good BHAGS
BHAG
set with
understanding What you Can What Drives
be The Best in Your Economic
the World at Engine

Branding
How do we measure one brands
performance vs another brand?
Branding
Brand Share of Market:
Measuring a brands percent of sales in a market
Can be measured nationally, regionally and at retailers
Data captured via
Scanner data (IRI, Nielsen)
Industry trends A
nnual reports
Branding
Measuring Brand Share of Market
Unit $$ Unit $$
Sales Sales Share Share
National 120 $270 100% 100%
Brand A 5 15 4.2% 5.6%
Brand B 15 15 12.5% 5.6%
Brand C 3 7 2.5% 2.6%
Branding
Measuring Brand Share of Market
Brand Sales
Category Sales = Brand Share
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
What is Brand Management?
Entrepreneurs are building brands (Ben &
Jerrys, Yahoo)
Creating a whole new brand
Riskiest
Most lucrative
Six to Seven of Ten brands launched fail
Majority of Brand Builders main task
take existing brand legacy
adapt brands to suit the requirements of more
sophisticated consumers.
Components of Main Brand Builders task
Embrace the increasing possibilities for communicating
brand values
Acknowledge growing financial pressures on brands to
make a return.
Issue: Agencies are communicators..some given
responsibility to modify core brand valuesbrand
owners may run into difficulties with this later..
Marketing as Brand Managements
responsibility is to build long-term
profitable growth for the companys brands.
To accomplish this, 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 a Brand Management?
Brand Building Begins By
Understanding & anticipating the needs and
desires of the consumer
Understanding the key attributes of the
product(s)
OurMission is to DISCOVER (rather than
Invent) the brands CORE VALUES and
abide by them.
Brand = Primitive God
If we keep its laws
And pay regularly the tributes due
(mainly advertising), fortune will smile
on us otherwise, disaster.
You have to maintain and replenish a

brand over time or it will die
Brand Vision and Essence
BRAND = Mindset
EQUITY = Roots
ESSENCE = Brands Soul
VISION = Brands DNA
Functional Excellence in Firmwide Leadership in
Support of the Brand Stewarding the Brand
Primary Source of Differentiation Primary Source of Differentiation

Product/service innovation and Customer experience, in addition to
communication innovation and communication
Purpose of the Brand Purpose of the Brand

Create or reinforce product Provide clear set of values along
distinctiveness which to align all enterprise activities
and investments
Corporate Executive Board

Marketers Responsibilities Marketers Responsibilities
Deduce customer interests from Generate customer insight from all
market research data points of customer contact
Develop and refine brand strategy Develop & Refine brand values, and
translate into expectations for each
function and role
Control advertising and promotion Influence customer experience
planning and execution across all touch-points, from
communication through transaction
and service
Develop new line extensions Leverage brand into new, relevant
industries, marketplaces or customer
segments
Marketers Responsibilities Marketers Responsibilities
Defend marketing budget Champion shareholder value
Base decisions primarily on Base decisions on marketing
marketing judgement judgement supported by
comprehensive customer database
and/or modeling of all key inputs and
outputs
Determine success through Determine success using a dashboard
intermediate measures (awareness, of selected intermediate and bottom-
recall, brand equity) line measures
Brand Architecture Brand Architecture

Multiple, unrelated brands Single brand or few, interrelated
brands
Locus of Brand Ownership Locus of Brand Ownership

Brand Managers Chief Marketing Officer

Brand Management is reliant on entire
corporation and agency teams
In Operationalizing the brand, the
highest priority is to enlist the support
of each member of the team
Innovative Analysts
Archeologists
Brand Sociologists
Champions Politicians
General Managers
Templar Knights of Equity
Evangelists
Brand Stewards
Parallel Path Strategic Growth Model

(Sonis Standard Operating Procedure)
Guiding Focused Strategic Growth
Parallel Path Process
Building
Brands
NOT
Growing
Products
PATH 2:
Weve got a
Business to Run
$ $
PATH 1:
Strategic Plan
for Long Term
Explosive Growth
Review &
Interview ALL
analyze
key internal
business and
players, all
consumer
vendors, & Read all research
trends
buyers/brokers on-hand & obtained
#1 Full Business Immersion

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

Path 1: Strat Plan for High Growth
Focus on
Immediate
Business
Ensure All
Issues
ASK & Listen Priorities &
Deadlines are met
#1 Work Current Plan

Short Term: Running The Business
#5 ADJUST SHORT TERM PLAN
#4 Full Team Brainstormings
#3 Strat & Tactic Successes/Failures
#2 Facts vs Folklore
#1 Work Current Plan

Path 2: ST Running The Business

$$ ADJUST SHORT TERM PLAN
#4 Full Team Brainstorm
#3 Vision >>Objectives >>Strategies Strat & Tactic Successes/Failures
#2 Brand Essence/Consumer Insight Facts vs Folklore
#1 Full Business Immersion Work Current Plan

Path 1: Strat Plan for High Growth Path 2: ST Running The Business

$$ ADJUST SHORT TERM PLAN
#4 Full Team Brainstorm

Building
Vision >>Objectives >>Strategies Strat & Tactic Successes/Failures
#3
Brands
#2 Brand Essence/Consumer Insight NOT
Facts vs Folklore
Growing
#1 Full Business Immersion Products Work Current Plan
Path 1: Strat Plan for High Growth Path 2: ST Running The Business
In Class Exercises:
Self Positioning
Case Study
Product and Brand Hierarchy

Exercise
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?
What is a Product?
Additional Product attributes,
benefits, or related services that
Five competitors
Additional product attributes,

Levels to Augmented Product benefits, or related services that
a Product: competitors
Attributes and Characteristics that

Expected Product buyers normally expect and agree
to when they purchase a product
Basic Version of the product
Generic Product containing only those elements

absolutely necessary to function.
No distinguishing features.
The Fundamental Need or Want

CORE BENEFIT that consumers satisfy by
consuming the product or service
PRODUCT LEVEL
LEVEL Television or Juice Drink
BRAND
Name/Positioning
Potential Product
Augmented Product
Expected Product
Generic Product
Core Benefit
Brand Value:
Very meaningful in
The emotional beliefs and
values that consumers feel
are being addressed by our
consistently to our
brand (CENTRAL)
Beliefs & consumers
Core
Values
The functional and emotional
benefits that our
product/services provides to
the consumer
Benefits
(EXPRESSIVE)
Product/Service features Features & Easy to deliver and explain

and/or attributes that must be to consumers but also easy to
addressed (FUNCTIONAL)
Attributes imitate
BRAND HIERARCHY
LEVEL Television or Juice Drink
BRAND
Name/Positioning
Central
Beliefs and Core Values
Expressive
Benefits
Functional
Features and Attributes
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?
09/18/03 ASSIGNMENT
SBM Chapters 1-3, Du Pont Case Study

Good/Bad branding comparative one-pager and
images
Be prepared to discuss group Hierarchy exercise

and Personal Positioning Statements
Feedback
THANK YOU!
Class #1- September 11th, 2003
Soni Simpson

T 1224418616 - 7380064 Strategic Brand Management by Soni Simpson 2003

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Strategic Brand Management

Were going to define and refine our thinking about

Well build off text, industry experts & studies,

6:00 Turn In Assignment

Weekly Assignments 15%

Lets Get Started

Data: 100 Leading National Advertisers (AA June 24, 2002)

Additional product attributes,

Attributes and Characteristics that

Basic Version of the product

Generic Product containing only those elements

The Fundamental Need or Want

Brand = Mind Set

Timothy D. Ennis, Ennis Associates, Inc

The psychological response to a brand can be as

Brand = Mind Set

Timothy D. Ennis, Ennis Associates, Inc

Products Brand Strong Brand

Products Brand Strong Brand

Products Brand Strong Brand

Products Brand Strong Brand

Case Groups Definition:

Company Company is equal Brands dominate

Kevin Clancy, Copernicus

The World's 10 Most Valuable Brands - 2002

Communicate Clear Values

Stretch Across a Number of Products

Attached to Consumers/ NOT Products

BRAND LENGTH POWER BRAND BREADTH

The influence or dominance

The stretch or extension that

The breadth of franchise that

The degree of commitment that the

BRAND LENGTH POWER BRAND BREADTH

Common Denominator for assessing the

Marketing effects uniquely attributed to the brand

Represents the ADDED VALUE endowed as a

Bridge between the past and future possibilities

Timothy D. Ennis, Ennis Associates, Inc

Timothy D. Ennis, Ennis Associates, Inc

Visual Physical Logo

Kevin Clancy, Copernicus

1800s Heritage The Real Thing

The Big Mac Happy Meals

Brand Imposing Ones Will

Timothy D. Ennis, Ennis Associates, Inc

Interbrand; The Worlds Greatest Brands.

Apple - creative and human values

Interbrand; The Worlds Greatest Brands.

Interbrand; The Worlds Greatest Brands.

Functional Easy to deliver and explain

Interbrand; The Worlds Greatest Brands.

Features & Easy to deliver and explain

Hierarchy : Timothy D. Ennis, Ennis Associates, Inc

Product/Service features Features & Easy to deliver and explain

EXPRESSIVE Brand I Trust / Taste You Trust

Benefits Part of making food my way

OKValues are EssentialBUT

To build successful brands while

Transform- Model-Based Obsessive

Kevin Clancy, Copernicus, Counter Intuitive

Where there is no vision, the

Kevin Clancy, Copernicus, Counter Intuitive