Date post: | 23-Dec-2015 |
Category: |
Documents |
Upload: | aubrey-foster |
View: | 217 times |
Download: | 0 times |
Strategic Brand ManagementStrategic Brand Management
WELCOME!!
Class #1- September 13th, 2004
Soni Simpson
““Brand Team” IntroductionsBrand Team” Introductions Name Personal Demographics
– Who You Work for – What You Do All Day – Undergraduate Focus– What Degree You’re Working on
What Courses You’ve Completed/Are In
Personal Psychographics– Something Fun/Unique About Yourself– What Motivates You– Why You’re Here Tonight
Communicate your personal brand essence
and call to action In :30 please…
Course OverviewCourse 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
Course OverviewCourse Overview Ten Weeks + Final (TBD)
1. Brands 2. Consumer3. Strategy4. Marketing Mix Tactics5. Mid term/activity6. Metrics7. Portfolio Management8. Expansion9. Global10. Final Case Study Presentations11. Personal Positioning Statement OR FINAL!!
Typical Class Framework
6:00 Turn In Assignment
6-7:15 Theory Lecture/Discussion
7:15-7:30 Break
7:30-8 Theory Lecture/Discusion
8-9:15 Homework Discussion/
In Class Case Groups
Course OverviewCourse Overview
WILL change
W/GuestLectures
Grading Rubrix
Weekly Assignments 15%Short Group Case Study 15%Mid Term Exam 20%Final Case Study Project 15%Final Case Study Presentation 15%Self Positioning Presentation 10%Final Exam TBDProfessionalism 10%
Course OverviewCourse Overview
AssignmentsDue at 6pm
AGENDA Top Brands Brand vs Product vs Company Product Levels Brand Definition Brand Relevance Power and Corporate Brands Brand Equity Brand Value Good To Great Companies/Hedgehog
Strategic Brand ManagementStrategic Brand ManagementTACTICAL Application•Brand Share•Brand Management•Brand Management Task Models•IN CLASS CASE STUDIES
•Self Positioning•Product v Brand Case Study•Due Next Week
Strategic Brand ManagementStrategic Brand Management
The World's 10 Most Valuable Brands - 2003
VALUE ($billions)
1 COCA-COLA 70.45
2 MICROSOFT 65.1
3 IBM 51.7
4 GE 42.3
5 INTEL 31.1
6 NOKIA 29.4
7 DISNEY 28.0
8 McDONALD'S 24.7
9 MARLBORO 22.2
10 MERCEDES 21.4
Data: Interbrand Corp., J.P. Morgan Chase & Co /
Business Week AUGUST 4, 2003
THE BEST GLOBAL NDS2003 Global Brands ScoreboardThe table that follows ranks 100 global brands that have a value greater than $1 billion. The brands were selected according to two criteria. They had to be global in nature, deriving 20% or more of sales from outside their home country. There also had to be publicly available marketing and financial data on which to base the valuation.
Strategic Brand ManagementStrategic Brand Management
The World's 10 Most Valuable Brands - 2002
VALUE ($billions)
1 COCA-COLA 69.6
2 MICROSOFT 64.1
3 IBM 51.2
4 GE 41.3
5 INTEL 30.9
6 NOKIA 30.0
7 DISNEY 29.3
8 McDONALD'S 26.4
9 MARLBORO 24.2
10 MERCEDES 21.0Data: Interbrand Corp., J.P. Morgan Chase & Co /
Business Week AUGUST 5, 2002
Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.
Strategic Brand ManagementStrategic Brand Management
The World's 10 Most Valuable Brands – 2003
Data: Interbrand Corp., J.P. Morgan Chase & Co /
Brandchannel.com Feb 2004
What is a Product?What is a Product?Kotler’s
Five levels to a product:
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
What is a Product?What is a Product?Kotler’s
Five levels to a product:
CORE BENEFIT
Generic Product
Expected Product
Augmented Product
Potential Product
The Fundamental Need or Want that consumers satisfy by consuming the product or service
What is a Product?What is a Product?Kotler’s
Five levels to a product:
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
Generic Product
Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.
What is a Product?What is a Product?Kotler’s
Five levels to a product:
CORE BENEFIT
Augmented Product
Potential Product
Generic Product
Expected Product
Attributes and Characteristics that buyers normally expect and agree to when they purchase a product
What is a Product?What is a Product?Kotler’s
Five levels to a product:
CORE BENEFIT
Potential Product
Generic Product
Expected Product
Augmented Product
Additional product attributes, benefits, or related services that distinguish the product from competitors
What is a Product?What is a Product?Kotler’s
Five levels to a product:
CORE BENEFIT
Generic Product
Expected Product
Augmented Product
Potential Product All the augmentations and transformations that a product might ultimately undergo in the future
What is a Product?What is a Product?Kotler’s
Five levels to a product:
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
The Fundamental Need or Want that consumers satisfy by consuming the product or service
Generic ProductBasic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.
Expected ProductAttributes and Characteristics that buyers normally expect and agree to when they purchase a product
Augmented ProductAdditional product attributes, benefits, or related services that distinguish the product from competitors
Potential ProductAll the augmentations and transformations that a product might ultimately undergo in the future
What is a Brand?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?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?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?What is a Brand?
AMA defines a brand vs a Brand.What does the AMA definition leave out?
What is 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.
What is a Brand?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
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, bond, or pact
w/make of product Symbolic Device Signal of Quality
Why Does A Brand Matter?Why Does A Brand Matter?
What is a Brand?What is a Brand?
Products don’t 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?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 consumer’s consideration.
Strong Brand
Perceived by theConsumer as
Unique
Products(Commodities)
No DifferenceExcept Price
BrandName
Well KnownBut Similar
Brand
Distinctive
Timothy D. Ennis, Ennis Associates, Inc
What is a Brand?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 DifferenceExcept Price
BrandName
Well KnownBut Similar
Brand
Distinctive
Strong Brand
Perceived by theConsumer as
Unique
Timothy D. Ennis, Ennis Associates, Inc
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential ProductKotler’s Five Levels
of A Product
What is a Brand?What is a Brand?
Products(Commodities)
No DifferenceExcept Price
BrandName
Well KnownBut Similar
Brand
Distinctive
Strong Brand
Perceived by theConsumer as
Unique
BRAND DISTINCTION by Timothy D. Ennis
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential ProductKotler’s Five Levels
of A Product
What is a Brand?What is a Brand?
Products(Commodities)
No DifferenceExcept Price
BrandName
Well KnownBut Similar
Brand
Distinctive
Strong Brand
Perceived by theConsumer as
Unique
BRAND DISTINCTION by Timothy D. Ennis
OWN Something
What is a Brand?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
extensionBrands = Powerful emotional tools
What Is a Brand?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 ManagementStrategic Brand Management
Case Groups Definition:
Product
Service
Corporation
Brand
Alternative Branding ModelsAlternative Branding Models
Company dominates Brands
Company is equal to Brands
Brands dominate the Company
American Express (cards)
BMW (Motorcycles)
Colgate (Total toothpaste)
Disney (Films)
General Electric (appliances)
IBM (Technology)
L’Oreal (Cosmetics)
Sony (Electronics)
Holiday Inn (Crowne Plaza)
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
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
Strategic Brand ManagementStrategic Brand Management
The World's 10 Most Valuable Brands - 2003
VALUE ($billions)
1 COCA-COLA 70.45
2 MICROSOFT 65.1
3 IBM 51.7
4 GE 42.3
5 INTEL 31.1
6 NOKIA 29.4
7 DISNEY 28.0
8 McDONALD'S 24.7
9 MARLBORO 22.2
10 MERCEDES 21.4
Data: Interbrand Corp., J.P. Morgan Chase & Co /
Business Week AUGUST 4, 2003
Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.
POWER BRANDSPOWER BRANDS
The World's 10 Most Valuable Brands - 2002
VALUE ($billions)
1 COCA-COLA 69.6
2 MICROSOFT 64.1
3 IBM 51.2
4 GE 41.3
5 INTEL 30.9
6 NOKIA 30.0
7 DISNEY 29.3
8 McDONALD'S 26.4
9 MARLBORO 24.2
10 MERCEDES 21.0Data: Interbrand Corp., J.P. Morgan Chase & Co /
Business Week AUGUST 5, 2002
Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.
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 BRANDSPOWER 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
POWER BRANDSPOWER BRANDS
Assessing BRAND POWER
POWER BRANDSPOWER BRANDS
Interbrand
BRAND DEPTH
BRAND WEIGHT
BRAND LENGTH BRAND BREADTHPOWER
The influence or dominance that a brand has over its category or market (more than just market share)
Assessing BRAND POWER
POWER BRANDSPOWER BRANDS
Interbrand
BRAND WEIGHT
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)
Assessing BRAND POWER
POWER BRANDSPOWER BRANDS
Interbrand
BRAND LENGTH
The breadth of franchise that the brand has achieved both in terms of age spread, consumer types and international appeal
Assessing BRAND POWER
POWER BRANDSPOWER BRANDS
Interbrand
BRAND BREADTH
Assessing BRAND POWER
POWER BRANDSPOWER BRANDS
Interbrand
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.
Assessing BRAND POWER
POWER BRANDSPOWER BRANDS
Interbrand
BRAND DEPTH
BRAND WEIGHT
BRAND LENGTH BRAND BREADTHPOWER
Power Brand = Master Brand? Power Brand = Master Brand?
Manifestation of Brand EssenceA 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 CorporationBranding 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 powerTraditional brand management not as
effective/efficientFocus moving up the value chain
Branding the CorporationBranding the Corporation
Master Branding the Corporation Enhances Brand…
Clarity– Clear brand priorities
Synergy– Every exposure generates awareness
Leverage– Corporate brand in all Company strategies
Brand Relationship SpectrumBrand Relationship Spectrum
Thus, Benefits of Corporate Branding:– Every marketing dollar benefits each one of a
company’s 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
Branding the CorporationBranding 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 CorporationBranding 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
Branding the CorporationBranding the Corporation
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
Branding the CorporationBranding the Corporation
BrandingBrandingDifferent outcomes result from the
marketing of a product or service because of its – brand name– brand element– brand identification– WHAT ELSE?
Brand EquityBrand EquityCommon Denominator to interpret the
potential effects and trade offs of various strategies and tactics
Common Denominator for assessing the value of a brand
Brand EquityBrand 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 EquityBrand EquityA 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. Ennis, Ennis Associates, Inc
Brand EquityBrand EquityHow can Brand Equity be created?How can Brand Equity be measured?How can Brand Equity be used to expand
business opportunities?
Brand EquityBrand 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
Timothy D. Ennis, Ennis Associates, Inc
Brand Equity Brand Equity
Physical Product
AttributesQuality
Uses
Kevin Clancy, Copernicus modified by Soni Simpson
Brand Equity Brand Equity
Physical Product
AttributesQuality
Uses
Kevin Clancy, Copernicus modified by Soni Simpson
BRAND GESTALT
Brand Equity Brand Equity
Physical Product
AttributesQuality
Uses
Brand Personality
LogoVisualAppearance
Country ofOrigin
User Imagery
Tangible
Benefits
Emotional
Benefits
Brand Customer
Relationship
Kevin Clancy, Copernicus modified by Soni Simpson
The Coca-Cola Brand Is…
1800’s Heritage The Real Thing
Americana Red & White Striped Can
Vanilla Coke Sold Everywhere
Authenticity Battles with Pepsi
Brand EquityBrand Equity
The Mc Donald’s 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 EquityBrand Equity
A synthesis of all elements, physical, aesthetic, rational AND emotional.
End result =
– appropriate
– differentiated
– relevant
Brand EquityBrand Equity
“ 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 it’s 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 don’t love what you’re offering me, I’m not even
interested.” - Kevin Roberts, Saatchi and Saatchi
BrandingBranding
“ 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 it’s 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 don’t love what you’re offering me, I’m not even
interested.” - Kevin Roberts, Saatchi and Saatchi
BrandingBranding
Those Brands which are particularly well adapted to the environment and which thus, survive and flourish.
POWER BRANDSPOWER BRANDS
•Attached to Consumers•Deep respect
for the way products fit into Consumer’s lives
= “Core” of Success
Brand EquityBrand EquityA 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. Ennis, Ennis Associates, Inc
Brand Value BreakdownBrand Value Breakdown
0
20
40
60
80
100
120
Coca-Cola
J&J P&G Unilever Amazon
INTANGIBLE &Goodwill
Net TANGIBLEAssets
$US Billions
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 ValueBrand Value
Brand 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 ValueBrand Value
Three Tiers of Brand Value– Functional Values– Expressive Values– Central Values
Interbrand; The World’s Greatest Brands.
Central
Expressive
Functional
Brand Value Corresponding to Brand Value Corresponding to Brand Hierarchy PyramidBrand Hierarchy Pyramid
Brand ValueBrand Value
Functional Values: – Govern product performance
Coke refreshes its drinker Volvo gives its driver a safe ride IBM PC provides quick computing
– Don’t differentiate products Pepsi refreshes Mercedes is as safe as Volvo Apple is as quick as IBM
– Brand Owner’s “bright ideas” can be instantly copied in every continent
Interbrand; The World’s Greatest Brands.
Brand ValueBrand 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 - masculine values Armani’s - status and fashionable values Apple - creative and human values
Interbrand; The World’s Greatest Brands.
Brand ValueBrand Value
Central Values: – Most Enduring– Right to the Core of the Consumer’s Belief System– At their purest = embodied in religious, 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”, Richard Branson’s Irreverent
Virgin
Interbrand; The World’s Greatest Brands.
Brand Value Corresponding to Brand Value Corresponding to Brand Hierarchy PyramidBrand Hierarchy Pyramid
Central
Expressive
Functional
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Easy to deliver and explain to consumers but also easy to imitate
Interbrand; The World’s Greatest Brands.
Central
Expressive
Functional
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Easy to deliver and explain to consumers but also easy to imitate
Beliefs & Core
Values
Benefits
Features & Attributes
Brand Value Corresponding to Brand Value Corresponding to Brand Hierarchy PyramidBrand Hierarchy Pyramid
Hierarchy : Timothy D. Ennis, Ennis Associates, Inc
Brand Value: Brand Value: Brand Hierarchy PyramidBrand Hierarchy Pyramid
Beliefs & Core
Values
Benefits
Features & Attributes
The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL)
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)
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Easy to deliver and explain to consumers but also easy to imitate
Mc Cormick: The Taste You Trust
Brand Value: Brand Value: Brand Hierarchy PyramidBrand Hierarchy Pyramid
CENTRAL VALUE
Beliefs and Core Values
EXPRESSIVE
Benefits
FUNCTIONAL
Features & Attributes
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, 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 Brand Hierarchy Pyramid vs Product LevelProduct Level
Beliefs & Core
Values
Benefits
Features & Attributes
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Easy to deliver and explain to consumers but also easy to imitate
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
Brand Value Brand Value
Values Need to be Harnessed & HonedThe Force
– Brand Builder’s Vision– Big Idea– Conviction
Brand Vision 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 BuildingBrand Building
Kevin Clancy Copernicus’s 5 Step Process
InspirationalVision
Transform-ational
Strategy
Model-BasedMarketingPlanning
ObsessiveImplement-
ation
DiagnosticMetrics
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision 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 Brand Vision
The First 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 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 Brand Vision
MUST BE:
Exciting, even inspirational, to all of your stakeholders: customers and prospective customers, managers and employees, analysts, reporters – everyone.
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision 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 ChecklistBrand 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 company’s products Transformational, revolutionary, not evolutionary
Brand Vision Brand Vision
Let’s review some published vision statements
Assign them a college grade from 0 to 100.
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision 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.”
Kevin Clancy, Copernicus, Counter Intuitive
Grade = 63
Brand Vision Brand Vision
A beverage experience company
“To have bigger brand awareness then
Coca-Cola.”
David Sutton, Zyman Marketing
Big Hairy Audacious Goal
Brand Vision Brand Vision
A motorcycle company
“Yamaha Wo Tsubusa!”
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision Brand Vision
A motorcycle company
“We will crush, squash, slaughter Yamaha!”
Kevin Clancy, Copernicus, Counter Intuitive
Grade = 85
Brand Vision Brand Vision
A technology company
“To eclipse IBM as the #1 technology company in the world.”
Kevin Clancy, Copernicus, Counter Intuitive
Grade = 91
Brand Vision 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.”
Kevin Clancy, Copernicus, Counter Intuitive
Grade = 96
VISION to ASSET LEVERAGEVISION to ASSET LEVERAGE
Tellis and Golder five factors and rationale as the keys to enduring brand leadership
Gerard Tellis & Peter Golder “First to Market, First to Fail? Real Causes of Enduring Market Lendership” MIT Sloan Management Review, 1/1/96
Vision of the Mass Market
Managerial Persistence
Financial Commit-
ment
Relentless Innovation
Asset Leverage
Brand BuildingBrand Building
Kevin Clancy Copernicus’s 5 Step Process
InspirationalVision
Transform-ational
Strategy
Model-BasedMarketingPlanning
ObsessiveImplement-
ation
DiagnosticMetrics
Kevin Clancy, Copernicus, Counter Intuitive
Brand Vision 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
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential ProductKotler’s Five Levels
of A Product
What is a Brand?What is a Brand?
Products(Commodities)
No DifferenceExcept Price
BrandName
Well KnownBut Similar
Brand
Distinctive
Strong Brand
Perceived by theConsumer as
Unique
BRAND DISTINCTION by Timothy D. Ennis
OWN Something
Assessing BRAND POWER
POWER BRANDSPOWER BRANDS
Interbrand
BRAND DEPTH
BRAND WEIGHT
BRAND LENGTH BRAND BREADTHPOWER
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)
Assessing BRAND POWER
POWER BRANDSPOWER BRANDS
Interbrand
BRAND LENGTH
Strategic Brand ManagementStrategic Brand ManagementThe World's 10 Most Valuable Brands - 2003
VALUE ($billions)
1 COCA-COLA 70.45
2 MICROSOFT 65.1
3 IBM 51.7
4 GE 42.3
5 INTEL 31.1
6 NOKIA 29.4
7 DISNEY 28.0
8 McDONALD'S 24.7
9 MARLBORO 22.2
10 MERCEDES 21.4
Data: Interbrand Corp., J.P. Morgan Chase & Co /
Business Week AUGUST 4, 2003
GOOD – TO –GREAT CASES
Results T +15 yr*
1 Abbott 3.98x
2 Circuit City 18.5x
3 Fannie Mae 7.56x
4 Gillette 7.39x
5 Kimberly-Clark 3.42x
6 Kroger 4.17x
7 Nucor 5.16x
8 Philip Morris 7.06x
9 Pitney Bowes 7.16x
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 Brand Vision
HEDGEHOG ConceptThe 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
i.e. YOU NEED A BIG HAIRY VISION
Jim Collins, Good To Great
Brand Vision Brand Vision
Jim Collins, Good To Great
What are you deeply Passionate About
What you Can be The Best in the World at
What Drives Your Economic Engine
A Hedgehog Concept:
•Is not a goal to be the best,
•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 of what you CAN be the best at.
Brand Vision Brand Vision
What are you deeply Passionate About
What you Can be The Best in the World at
What Drives Your Economic Engine
A Hedgehog Concept
“Focusing solely on what you can potentially do better than any other organization is the only path to greatness.”
…Equally important they know what they cannot be best at.
…It is an understandingJim Collins, Good To Great
BHAG
Brand Vision Brand Vision
What are you deeply Passionate About
What you Can be The Best in the World at
What Drives Your Economic Engine
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
BHAG
Brand Vision Brand Vision
What are you deeply Passionate About
What you Can be The Best in the World at
What Drives Your Economic Engine
BHAG
Jim Collins, Good To Great
BIG HAIRY VISIONS & GOALS
• Bad BHAGs set with bravado,
• Good BHAGS set with understanding
BrandingBranding Brand Share of Market:
– Measuring a brand’s percent of sales in a market– Can be measured nationally, regionally and at retailers – Data captured via
Scanner data (IRI, Nielsen)Industry trends Annual reports
BrandingBranding
Measuring Brand Share of MarketUnit $$ Unit $$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%
BrandingBranding
Are ALL Brands Created Equally?How Does Brand Usage Compare to Category or Competitive Usage?Are Brands Equally Strong in Different Regions?Measuring Brand DevelopmentUsing Brand Share Metrics
Brand ManagementBrand Management
As much ART as SCIENCEAs much SCIENCE as ARTAchieved by combo of
– Specialist talent– Long term vision– Analytic wizardry
What is Brand Management?What is Brand Management?
Entrepreneurs are building brands (Ben & Jerry’s, Yahoo…)
Creating a whole new brand– Riskiest– Most lucrative
Six to Seven of Ten brands launched fail
What is Brand Management?What is Brand Management?
Majority of Brand Builders main task – take existing brand legacy– adapt brands to suit the requirements of more
sophisticated consumers.
What is Brand Management?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.
– Issue: Agencies are communicators..some given responsibility to modify core brand values…brand owners may run into difficulties with this later..
What is Brand Management?What is Brand Management?
Marketing as Brand Management’s responsibility is to build long-term profitable growth for the company’s brands.
What is Brand Management?What is Brand Management?
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?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.
What is Brand Management?What is Brand Management?
Brand = Primitive God– If we keep it’s laws – And pay regularly the tributes due
(mainly advertising), fortune will smile on us – otherwise, disaster.
What is Brand Management?What is Brand Management?
“You have to maintain and replenish a brand over time or it will die”
Brand Vision and EssenceBrand Vision and Essence
BRAND = Mindset
EQUITY = Roots
ESSENCE = Brand’s Soul
VISION = Brand’s DNA
What is Brand Management?What is Brand Management?
Functional Excellence in Support of the Brand
Primary Source of Differentiation
• Product/service innovation and communication
Purpose of the Brand
• Create or reinforce product distinctiveness
Firmwide Leadership in Stewarding the Brand
Primary Source of Differentiation
• Customer experience, in addition to innovation and communication
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?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
• Control advertising and promotion planning and execution
•Develop new line extensions
Firmwide Leadership in Stewarding the Brand
Marketers Responsibilities
• Generate customer insight from all points of customer contact
•Develop & Refine brand values, and translate into expectations for each function and role
•Influence customer experience across all touch-points, from communication through transaction and service
•Leverage brand into new, relevant industries, marketplaces or customer segments
Corporate Executive Board
What is Brand Management?What is Brand Management?Functional Excellence in Support of the Brand
Marketers Responsibilities
• Defend marketing budget
•Base decisions primarily on marketing judgement
•Determine success through intermediate measures (awareness, recall, brand equity)
Brand Architecture
• Multiple, unrelated brands
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 bottom-line measures
Brand Architecture
• Single brand or few, interrelated brands
What is Brand Management?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
What is Brand Management?What is Brand Management?
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
What is Brand Management?What is Brand Management?
Innovative AnalystsArcheologistsSociologistsPoliticians
General ManagersTemplar Knights of Equity
EvangelistsBrand Stewards
Brand Champions
Parallel Path Strategic Growth Model
(Soni’s Standard Operating Procedure)
Strategic Brand ManagementStrategic Brand Management
Guiding Focused Strategic GrowthGuiding Focused Strategic GrowthParallel Path ProcessParallel Path Process
PATH 2:We’ve got a
Business to Run
PATH 1:Strategic Plan for Long Term
Explosive Growth
$$
BuildingBrands
NOT Growing Products
Interview ALL key internal players, all vendors, & buyers/brokers
Review & analyze business and consumer trends Read all research
on-hand & obtained
Path 1: Strat Plan for High Growth
Guiding Focused Strategic GrowthGuiding Focused Strategic GrowthParallel Path ProcessParallel Path Process
#1 Full Business Immersion#1
Path 1: Strat Plan for High Growth
Guiding Focused Strategic GrowthGuiding Focused Strategic GrowthParallel Path ProcessParallel Path Process
Brand Essence/Consumer Insight#2
Vision >>Objectives >>Strategies#3
Full Business Immersion#1
SET STRATEGIC PLAN#5
Full Team Brainstormings#4
Short Term: Running The Business
ASK & Listen
Focus on Immediate Business Issues Ensure All
Priorities & Deadlines are met
Guiding Focused Strategic GrowthGuiding Focused Strategic GrowthParallel Path ProcessParallel Path Process
Work Current Plan#1
Work Current Plan#1
Path 2: ST Running The Business
Guiding Focused Strategic GrowthGuiding Focused Strategic GrowthParallel Path ProcessParallel Path Process
Facts vs Folklore#2
Full Team Brainstormings#4
Strat & Tactic Successes/Failures#3
ADJUST SHORT TERM PLAN#5
Work Current PlanFull Business Immersion
Facts vs FolkloreBrand Essence/Consumer Insight
#1
#2
Strat & Tactic Successes/FailuresVision >>Objectives >>Strategies
ADJUST SHORT TERM PLAN
#3
Full Team Brainstorm
SET STRATEGIC PLAN
#4
#5
Path 1: Strat Plan for High Growth Path 2: ST Running The Business
Guiding Focused Strategic GrowthGuiding Focused Strategic GrowthParallel Path ProcessParallel Path Process
$$
Work Current PlanFull Business Immersion
Facts vs FolkloreBrand Essence/Consumer Insight
#1
#2
Strat & Tactic Successes/FailuresVision >>Objectives >>Strategies
ADJUST SHORT TERM PLAN
#3
Full Team Brainstorm
SET STRATEGIC PLAN
#4
#5
Path 1: Strat Plan for High Growth Path 2: ST Running The Business
Guiding Focused Strategic GrowthGuiding Focused Strategic GrowthParallel Path ProcessParallel Path Process
$$Building
BrandsNOT
Growing Products
Strategic Brand ManagementStrategic Brand Management
In Class Exercises: Product and Brand Hierarchy Exercise: 9/13
Self Positioning: 9/20DuPont Case Study 9/20
Strategic Brand ManagementStrategic Brand Management
SELF POSITIONINGDevelop 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.
What is a Product?What is a Product?Kotler’s
Five Levels to a Product:
Generic Product
CORE BENEFIT
Expected Product
Augmented Product
Potential Product
The Fundamental Need or Want that consumers satisfy by consuming the product or service
Generic ProductBasic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.
Expected ProductAttributes and Characteristics that buyers normally expect and agree to when they purchase a product
Augmented ProductAdditional product attributes, benefits, or related services that distinguish the product from competitors
Potential ProductAdditional Product attributes, benefits, or related services that distinguish the product from competitors
PRODUCT LEVELPRODUCT LEVELLEVEL Electronic Communication
Device or Juice Drink
BRAND Name/Positioning
Potential Product
Augmented Product
Expected Product
Generic Product
Core Benefit
Brand Value: Brand Value: Brand Hierarchy PyramidBrand Hierarchy Pyramid
Beliefs & Core
Values
Benefits
Features & Attributes
The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL)
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)
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers
Easy to deliver and explain to consumers but also easy to imitate
BRAND HIERARCHYBRAND HIERARCHYLEVEL Electronic Communication
Device or Juice Drink
BRAND Name/Positioning
Central
Beliefs and Core Values
Expressive
Benefits
Functional
Features and Attributes
Strategic Brand ManagementStrategic 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?
09/20/03 ASSIGNMENT
SBM Chapters 1-3, DuPont Case Study Good/Bad branding comparative one-pager
and imagesBe prepared to discuss group Hierarchy
exercise and Personal Positioning Statements
Strategic Brand ManagementStrategic Brand Management