Brand Management

Business 6210, Winter 2008 Deanne Fisher

Objectives
• To understand that a brand is more than a product • To examine the five steps in building a brand • To consider the five strategic brand decisions that affect how marcoms are used • To understand how IMC build relationships that create brand value • To examine the anatomy of profitable brand relationships • Cadbury Megabrand Case

A Brand Is More than a Product • Brands are perceptions – Integrated bundle of information and experiences – Identifies product and maker – Has associations and image .

A Brand Is More than a Product • Brands transform products – Consumers use tangible attributes to decide whether two products are different – Consumers use intangible attributes to decide how two products are different • Quality and value • Brand image • Perceptions of brand users – Intangible attributes • Difficult for competitors to copy • More likely to involve consumers emotionally .

A Brand Is More than a Product • Brand promise – Brand is a virtual contract between a company and a customer – Failure to deliver on a promise  dissatisfaction – Customer expectations must be managed .

etc.A Brand Is More than a Product • Brand equity – Intangible value of a company beyond its physical assets • Premium pricing method • Royalty method – Elements • Brand-name awareness • Brand associations • Perceived quality • Proprietary assets (patents.) • Brand loyalty . trademarks.

How Brands Are Built • Five steps – – – – – Select a name and symbol Create awareness and brand identity Position the brand Create a brand image Create trust .

Choosing a Brand Name & Symbol • Choosing a brand name – – – – Benefit description Association Distinction Pronounceability • Choosing a brand symbol – Logo • Visual elements • Audio elements – Trademarks .

Branding Strategies • Aim: To ensure that the image and perception of a brand are maximized • Family Brands • Brand extensions • Cooperative Branding • Co-Branding • Ingredient branding • Private Brands .

Stakeholders Customers Employees Government. . the media. etc. special interest groups. suppliers.distribution channel members. financial & investor community. communities.

Stakeholder Overlap Customers Media Community Suppliers Shareholders Employees .

Brand Relationships • Acquisition versus retention • Trust – – – – – – – Satisfaction Consistency Accessibility Responsiveness Commitment Affinity Liking .

Brand Relationships – – – – – Awareness Identity Connected Community Advocacy Number of relationships Relationship intensity • Intensity • Managing expectations – Relationship ≠ exploitation – Relationship = win-win .

Brand Relationships • Loyalty – Share-of-wallet – Heavy users • Pareto Rule: 80/20 .

reducing marcom costs – Satisfied customers take less handholding • Impact on sales and profits – – – – Loyal customers buy more Loyalty increases long-term customer value Decreasing defections increase sales Disappointed customers spread negative w.m.o. .Profitable Brand Relationships • Impact on costs – Costs less to sell to current customers – Relationships amortize costs of acquisition – Loyal customers are brand advocates.

Benefits to Customers of Brand Relationships • • • • • Less risk Fewer decisions Fewer switching costs Greater buying efficiency Increased association .

IMC Builds the Relationships that Build the Brand • IMC can build trust • IMC is communication – Affects both the quantity and quality of relationships • Between the brand and customers • Between the brand and other stakeholders .

Summary • A brand is a special relationship • Brand value is determined by brand relationships • Brands are built in steps • There are several brand strategies • Brand relationships are the net sum of stakeholder support • Brand relationships can be analyzed in terms of trust. intensity. and loyalty . expectation gaps.

Cadbury Case Cadbury: The Brand • Leader since setting up in Ireland >70 years ago • Undisputed market leader with a 48% SOM The Cadbury Family Range .

Cadbury Case • The Cadbury Dairy Milk brand accounts for 33% of Cadbury’s total chocolate sales • Number one confectionery brand in the market • Cadbury made a strategic marketing decision: – to leverage the value of the Dairy Milk brand (i. .e. optimize the market potential of the brand by elevating it to a Megabrand or range brand • Cadbury wished for The Cadbury Dairy Milk brand to be stretched to become its own family brand.

no matter what your humour or the occasion.g. • The core proposition of the new Dairy Milk Megabrand could be described as: – delivering recipes for life’s upbeat occasions .e. e.i. Cadbury Dairy Milk will provide the perfect accompaniment’! .Cadbury Case • Scope of the Megabrand – products chosen for inclusion based on compatibility with the brand’s identity. the moulded (blocks) chocolate brands were included as they were perceived as variants of Dairy Milk.

Cadbury Case • Two products in the Cadbury range created a dilemma: – Wispa and Caramel. . – Both had a loyal consumer base which should not be abandoned • To incorporate these products into the Dairy Milk range called for a fresh strategy. – Both were standalone products with distinctive identities.

Cadbury Case • Identify: – Family Brand Names – Individual Brand Names – Combination Brand Names • How would you visually identify Cadbury Dairy Milk as a Megabrand? • How would you incorporate Wispa and Caramel? .

e. • The sub brand is then distinguished by its own individual script.Cadbury Case • Cadbury uses a combination brand strategy. Cadbury Crème Egg • The family brand identity is firstly communicated by the packaging with the Cadbury corporate purple colour and the distinctive Cadbury script logo. • The family brand. Cadbury is linked with its famous sub-brands. i. .

Cadbury Case CDM brings new vibrant look! •Swirls in new logo drawn on Cadbury ‘milk goodness’ cues. •Cadbury signature enlarged = stamp of quality. •Colour coding ensures maximum impact and product differentiation. •Dairy Milk brand endorsement across all variants. •Increased Prominence of Family Brand •Use of Dairy Milk Umbrella •Colour Coding for Differentiation •Maintain ‘Glass and Half’ •Maintain ‘Purpilisation’ .

Cadbury Case Range Refreshment – Summary • Transitions • New Products .

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