Strategic Brand Management

Overview

What is a Brand?

• A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

• A global brand is a brand that is recognised throughout much of the world.

Power Brands

The Top Determinants of Brand Strength

Customer Loyalty Price Premium

“An increase in customer loyalty of only 5% can lift lifetime profits per customer by as

much as 95%”

“In some sectors, an increase of customer loyalty of just 2% is equivalent to a 10% cost

reduction”

“Over 50% of customers would be willing to pay 20-25% price premium to the brand that

they are most loyal to”

“A 1% increase in brand equity can result in a 1% increase in stock price”

“50% of customers are willing to try a new product from a preferred brand because of the

implied endorsement, credibility and trust.”

“It takes 7 to 10 times the cost and effort to gain a new customer as it does to keep an

existing customer”

“I Would Travel Further”

“I Would Pay More”

“I Would Wait Longer”

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

Firm wide 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

Source: Corporate Executive Board

Innovative Analysts

Archeologists

Sociologists

Politicians

General Managers

Templar Knights of Equity

Evangelists

Brand Stewards

Brand Champions

CONSUMER

CHAMPION

“You have to maintain and replenish a brand over time or it will die”

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.

Customer-Based Brand Equity (CBBE) Model

3 Differential Effect

2 Brand Knowledge

1 Consumer Response to

Marketing

Brand Equity arises from

differences in CONSUMER

response

What CONSUMERS learned,

felt, seen, heard, experienced

over time

Reflected in CONSUMER

perceptions, preferences, and

behavior related to all aspects

of the marketing of a brand

Can there be Positive or Negative

Brand Equity?

How and Why?

Effect of Brand Perceptions

* Miller Lite

* Coors

* Pure Blonde* Heineken

* Guiness

* Budweiser

Taste Perceptions

w/Brand Knowledge

Taste Perceptions w/

“Blind” Taste Test

* Guiness* Miller Lite* Coors

* Pure Blonde

* Heineken

* Budweiser

Consumers Must THINK

Branded products are different

The Key

To Branding

2 Brand KnowledgeWhat CONSUMERS learned,

over time

The Key

To Branding

Brand Knowledge

Creates the differential effect

that creates Brand Equity.

The Key

To EQUITY

UNAWARE

NAME AWARENESS

BRAND FAMILIARITY

ACCEPTANCE

REGULAR USAGE

•% Conversion

•Longevity

•Market Presence

•Communication Intrusiveness

% Conversion •Message Communication

% Conversion•Persuasion & Interest

•Trial Inducement Promotions

% Conversion• Benefit Communication/Delivery

•Benefit Importance

% Conversion •Product Performance

% Conversion •Uniqueness

•Relevance

•Value

•Loyalty Building Promotions

Consumer Conversion Model

UNAWARE

NAME AWARENESS

BRAND FAMILIARITY

ACCEPTANCE

REGULAR USAGE

2 Brand Knowledge

Marketing

UNAWARE

NAME AWARENESS

BRAND FAMILIARITY

ACCEPTANCE

REGULAR USAGE

2 Brand Knowledge

Marketing

Brand Vision

What are you deeply

Passionate About

What you Can

be The Best in

the World at

What Drives

Your Economic

Engine

Source: Jim Collins, Good To Great

BIG HAIRY

VISIONS &

• Bad BHAGs

set with

bravado,

• Good BHAGS

set with

understanding

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%

Brand Unit Shares

Brand A Brand B Brand C All other

Brand Dollar Shares

Assessing Power Brands

Advantages of Power Brands

• Improved perceptions of product performance

• Greater loyalty

• Less vulnerability to competitive marketing actions

• Less vulnerability to crises

• Larger margins

• More inelastic consumer response

• Greater trade cooperation

• Increased marketing communications effectiveness

• Possible licensing opportunities

Power Brands

• WD-40 has gone against the grain for more than half a century by showing and telling consumers that it’s a product that can do it all

• company’s messages about its 2000 applications and tips from helpful friends

Power Brands

• Assessing BRAND POWER

Power Brands

Source: Interbrand

BRAND DEPTH

BRAND WEIGHT

The influence or dominance that a brand has over its category or market (more than just market share)

Power Brands

Source: 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)

Power Brands

Source: Interbrand

The breadth of franchise that

the brand has achieved both in

terms of age spread, consumer

types and international appeal

Power Brands

Source: Interbrand

Power Brands

Source: 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.

Power Brands

Source: Interbrand

BRAND DEPTH

BRAND WEIGHT

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 Copernicus’s 5 Step Process

Inspirational

Vision

Transform-

ational

Strategy

Model-Based

Marketing

Planning

Obsessive

Implement-

Diagnostic

Metrics

Source: Kevin Clancy, Copernicus, Counter Intuitive

Brand Vision

MUST BE:

So big, so bold and so audacious 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.

Source: 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 company’s products

� Transformational, revolutionary, not evolutionary

Brand Vision

• Let’s 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 company’s trademarks.”

Grade = 63

Brand Vision

A beverage experience company

“To have bigger brand awareness then

Coca-Cola.”

Source: David Sutton, Zyman Marketing

Big Hairy

Audacious Goal

Brand Vision

A motorcycle company

“Yamaha Wo Tsubusa!”

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

• 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 BRANDS

Consumer Driven Strategic Branding

Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies

Stages

Marketing

Program

Investment

Customer

Mindset

Market Performance

Shareholder

-Product

-Communication

-Trade

-Employee

-Other

-Awareness

-Associations

-Attitudes

-Attachment

-Activity

-Price Premiums

-Price Elasticity's

-Market Share

-Expansion Success

-Cost Structures

-Profitability

-Stock Price

-P/E Ratio

-Market Capitalization

Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies

Stages

Marketing

Program

Investment

Customer

Mindset

Market Performance

Shareholder

MultipliersProgram

Quality

Marketplace

Conditions

Investor

Sentiment

-Clarity

-Relevance

-Distinctiveness

-Consistency

-Competitive reactions

-Channel Support

-Customer size & Profile

-Market Dynamics

-Growth Panel

-Risk Profile

-Brand Contributions

Brand Value Chain & Testing

Strategic Marketing Process

ANNUAL STRATEGIESHow will the objectives be achieved?

Annual

Three Year and ANNUAL ObjectivesWhat do I want to Accomplish

Objectives Should be S.M.A.R.T

Establish

Positioning

Concept

Marketing Plan Execution

Functional Objectives &

Strategies

And Tactical Plan

Physical ProductPackage

Pricing

Advertising

Public

Relations

Consumer &

Retailer Promo

Market

Research

Measure Brand Equity

Business

Analysis

Market &

Competitive

Trends

Consumer

Insights

Marketing

Financial

Health

Strategic Implications & Strategy DevelopmentCore Competencies, External Opportunities

Brand Vision

Brand Strategy

Strategic Role

Strategic Marketing ProcessA

Business

Analysis

Market &

Competitive

Trends

Consumer

Insights

Marketing

Financial

Health

Brand Vision

Brand Strategy

Strategic Role

Establish

Positioning

ConceptAnal

Long T

Establish

Positioning

Concept

Strategies

And Tactical Plan

Pricing

Advertising

Public

Relations

Consumer &

Retailer Promo

Market

Research

Initial Strategic Planning Draft TimeLine

• Key TimingEDLONG STRATEGIC PLAN TIMELINEMarketing Team Planning 05/19/03 Announce Global Strat Plan

KEY ACTION June July August Sept October November

Corp Image

Brandscape

* Group Sorts

* Process/Next Steps

* Litmus to Hedgehog

* Final Image

Positioning Statement

* Hedgehog only

* Hedgehog + 'Scape

* Leadership Approval

Translation

* Corporate Identity

* 2004 Objectives

*Sales force update/intro

Objectives

* Marketing team

* Leadership Team

Strategies/tactics

* Training/Development

* Apply Hedghog to current Roles

* Marketing Team

*Leadership Team

*Other teams

EXECUTION

Product Architecture

* Design Sessions

* Presentation to leadership

* Present Prototype to Sales

* IT application

Pricing Optimization

Advertising Plan

* Advertising Strategy

*Media Strategy

* Agency review

* Creative Application

* Final Creative

UK Check points UK Check points UK Check pointsUK Check points UK Check points

Strategic Marketing Process

Annual

Establish

Positioning

Concept

Strategies

And Tactical Plan

Pricing

Advertising

Public

Relations

Consumer &

Retailer Promo

Market

Research

Business

Analysis

Market &

Competitive

Trends

Consumer

Insights

Marketing

Financial

Health

Brand Vision

Brand Strategy

Strategic Role

Brand Marketing ProcessA

Long T

Business

Analysis

Market &

Competitive

Trends

Consumer

Insights

Marketing

Financial

Health

Brand Vision

Brand Strategy

Strategic Role

Strategic Marketing

Market Trends Checklist

Volume & Share•Industry definition & served market

•Category Size & growth rates

•Category Segmentation, trends, importance to category

•Share of market by brand & by segment

Market Conditions•Household Penetration•Seasonality•Regionality (CDI/BDI)

Retail Conditions•Channels of Distribution

•Product Sourcing/availability

•Importance of the category to the retailer

•Retailer focus on private label

•Retailer influence over category marketing activity

Consumer Conditions

•Substitute products

•Changes in tastes/attitudes/needs

Government

Conditions

•Regulations & Reqs.

•Legislative issues

• Assessing Competitive Trends

Strategic Marketing

Competitor Identification

•Key direct competitors• Competitive Scope:

•Regional/National/Global

Competitive Strategy•Overall mission/priorities

•Target Audience

•Brand Turf/Positioning

•Class of Trade (COT) importance

Advantage

• Assessing Competitive Trends

Strategic Marketing

Competitor Identification

•Key direct competitors• Competitive Scope:

•Regional/National/Global

Competitive Strategy•Overall mission/priorities

•Target Audience

•Brand Turf/Positioning

•Class of Trade (COT) importance

Advantage

Long T

Business

Analysis

Market &

Competitive

Trends

Consumer

Insights

Marketing

Financial

Health

Brand Vision

Brand Strategy

Strategic Role

Measuring Brand Equity

• Purpose: to guide thinking and help distill the key issues and opportunities facing the Brand AND the category

• Can be done in competitive analysis

STRENGTH

Inherent source of competitive

advantage within the Brand (of

genuine relevance to the consumer)

WEAKNESS

Inherent cause of competitive

disadvantage within the Brand (of

genuine importance to consumer)

OPPORTUNITY

Unsatisfied or poorly satisfied need

in the marketplace which our

company can perform profitability

THREAT

Potential problem from external source

which could undermine our Brand’s

competitive position if not addressed.

Strategic Marketing

STRENGTH

Inherent source of competitive

advantage within the Brand (of

genuine relevance to the consumer)

WEAKNESS

Inherent cause of competitive

disadvantage within the Brand (of

genuine importance to consumer)

INTERNAL to the brand

Caused by the inherent nature of the Brand or our

management of it

Strategic Marketing

OPPORTUNITY

Unsatisfied or poorly satisfied need

in the marketplace which our

company can perform profitability

THREAT

Potential problem from external source

which could undermine our Brand’s

competitive position if not addressed.

EXTERNAL to the brand

Markets, competitors, retail, social trends etc.

Long T

Business

Analysis

Market &

Competitive

Trends

Consumer

Insights

Marketing

Financial

Health

Brand Vision

Brand Strategy

Strategic Role

Consumer Insights

“Another way to create new marketing opportunities is through better understanding of your customers and their full array of needs”

Dave Sutton, Zyman Marketing Group

Consumer Insights

In order to improve your consumer understanding:

– Rather than identify consumers, identify WITH them

– Knowledge only gets you halfway there-you need a plan to put into action

– Know what is in your consumers hearts and minds…as well as the market research numbers

– Be curious about the world around and human behavior

Dave Sutton, Zyman Marketing Group

• There are MACRO TRENDS that impact each touch point

Pre-Purchase

•Category &

Consumer

Segmentation

•Role of Branding

•Role of

Communication

•Role of Distribution

Point of Purchase

•Role of Pricing &

Promotion

•Role of Packaging

& Merchandising

•Role of the Retailer

Post Purchase

•Tasks & Activities

•Usage & User

Behavior

•Product Benefits

•Product Details

WHAT is

happening

(Information)

WHY is it

happening

(Understanding)

Macro Trends

Measuring Brand EquityConsumer Insights

• Centrum Herbals:– Line of herbal supplements, including Echinnacea,

St John’s Wort…

– Positioned as naturally complete and backed by the research of Centrum

– Addressed the trend toward herbal remedies, but recognizes the insight that consumers don’t always have confidence in the manufacturers of herbal remedies and can be skeptical about what they’re buying…

– Did it tie to the brand essence?? Did it work?

Consumer Insights

• Thermasilk:– A line of shampoos, conditioners and styling

products that actually improves the condition of hair when activated by heat…

– Positioned as the hair care line for healthy hair (for heavy stylers/users)

– Addressed the insight that women worry that they are damaging their hair by styling with heat, but are unwilling to give up the styling benefits

– Was the insight relevant? Did the product meet expectations? Did it work?

Consumer Insights

• Facts = “Duh”

• Insights = “AHA”

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 &

Values

Benefits

Features &

Attributes

Brand Value Corresponding to Brand Hierarchy Pyramid

Source: Hierarchy : Timothy D. Ennis, Ennis Associates, Inc.

Brand Value: Brand Hierarchy Pyramid

Beliefs &

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

4 Steps of Brand Building

Consumer Questions Brand Actions

1 WHO Are You?Ensure Identification & association

w/category or need

2 WHAT Are You?Firmly establish TOTAL brand

meaning by strategically linking

associations w/certain properties

3 WHAT About You?Elicit consumer response to brand

meaning and Id

4 WHAT About You

AND ME?Convert Brand Response to create

an intense, active loyal relationship

4 Steps of Brand Building

Consumer Questions Brand Actions

1 WHO Are You?Brand Identity

2 WHAT Are You?Brand Meaning

3 WHAT About You?Brand Responses

4 WHAT About You

AND ME?Brand Relationships

UNAWARE

NAME AWARENESS

BRAND FAMILIARITY

ACCEPTANCE

REGULAR USAGE

•% Conversion

•Longevity

•Market Presence

% Conversion•Message Communication

% Conversion•Uniqueness

•Relevance

•Value

4 Brand Relationships

(WHAT About You

AND ME?)

1 Brand Identity (WHO

Are You?)

2 Brand Meaning

(WHAT Are You?)

3 Brand Response

(WHAT About You?)

Consumer-Based Brand Equity Pyramid

Brand Salience

Consumer-BrandResonance

ConsumerJudgments

ConsumerFeelings

Performance

BrandImagery

4 Brand Relationships (WHAT About You

AND ME?)

1 Brand Identity (WHO Are You?)

2 Brand Meaning (WHAT Are You?)

3 Brand Response (WHAT About You?)

Salience

Resonance

Judgments

Feelings

PerformanceImagery

Loyalty

Attachment

Community

Engagement

Quality

Credibility

Consideration

Superiority

Warmth, Fun

Excitement,

Security, Social

Approval,

Self-Respect

AND ME?)

User Profiles

Purchase and Usage

Situations

Personality & Values

History, Heritage, &

Experiences

Brand Characteristics

& Secondary Features

Product Reliability,

Durability & Serviceability

Service Effectiveness, Efficiency,

& Empathy

Style and Design; Price

Category Identification

Needs Satisfied

Brand Salience

ConsumerJudgments

ConsumerFeelings

Performance

BrandImagery

AND ME?)

Brand Salience

ConsumerJudgments

ConsumerFeelings

Performance

BrandImagery

4 Intense, Active Loyalty

1 Deep Broad Brand Awareness

2 Points of Difference

3 Positive Accessible Reactions

Brand Salience

ConsumerJudgments

ConsumerFeelings

Performance

BrandImagery

4 Intense, Active Loyalty

1 Deep Broad Brand Awareness

2 Points of Difference

3 Positive Accessible Reactions

THIS is

Where the

Insight

So WHO is Our Target?

Source: Jim Collins, Good To Great

What are you deeply

Passionate About

What you Can

be The Best in

the World at

What Drives

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

So WHO is Our Target?

The consumer that

1) Is most attracted to our essence

2) We understand well

3) That is the most profitable growth

segment to attract

Long T

Business

Analysis

Market &

Competitive

Trends

Consumer

Insights

Marketing

Financial

Health

Brand Vision

Brand Strategy

Strategic Role

Brand Switching

Branding

• Measuring Brand Share of MarketBrand Sales

Category Sales= Brand Share

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%

Brand Dollar Shares

Brand Unit Shares

Branding

• Do consumers use more than one product within a category?

• Do brands gain or lose sales or consumers from/to other brands?

• Can brands increase consumer consumption of the category?

• Measuring Brand Switching and Source of Volume Interpretation

Brand Switching

SI Brand

Period 1

Competitors

Period 2Brand Switching

(+) (-)

SI Brand (# units)

Changes in Category

Consumption

SI Brand (+/- # units)Decreases - Increases

SI Brand (# units) SI Brand (+/- # units)Lost/new brand buyers

Competitors (+/- # units)

SI Brand Bought/Didn’t BuyCategory

New/Lost/Infrequent

Category Buyers

Brand Switching

• The total amount of a brand’s volume gained from (or lost to) competitive brands in the category.

Brand Switching

Category Consumption

• The total amount of a brand’s volume gained (or lost) due to increased (or decreased) category consumption among households that bought the category in both periods.

• The brand may have been purchased in one or both periods. Consumption is driven by either of the following components:– Decreases/Increases

– Lost/New Brand Buyers

Brand Switching

Category Consumption Changes

• Decreases/Increases

• Lost/New Brand Buyers

Consumer Changes

• New (or Lost) or Infrequent Buyers

Brand Switching

Decreases/Increases

• Total amount of brand volume lost/gained due to decreased/increased category consumption among households that bought the brand in both Period 1 and Period 2.

Brand Switching

Lost/New Brand Buyers

• Total amount of the brand’s volume lost/gained due to decreased/increased category consumption among households that bought the category in both Period 1 and Period 2, but bought the brand in only one Period.

Brand Switching

New (or Lost) or Infrequent Buyers

• The total amount of a brand’s volume gained (or lost) from buyers who purchased the category in one period but not the other.

Brand Switching

SI Brand

Period 1

Competitors

(+) (-)

SI Brand (# units)

Changes in Category

Consumption

New/Lost/Infrequent

Category Buyers

Personal Care Issues to address:

• From where is S brand growth coming? – Determine the sources of volume due to:

• brand switching• increased/decreased category consumption• lost/new category buyers

• Did S Product Line contribute to overall category growth?

• What are the switching dynamics between “S” and other leading brands in the Category?

• With which competitive brands does “S” show the greatest interaction?

• What implications did volume switching and altered category consumption have on consumer purchase dynamics for “S”?

• What are the sources of volume for the other leading Category brands? Particularly Key Competitors?

•Brands

-St. Ives

-Suave

-Soft-soap

-*Dial

-Caress

-Private Label

-Clairol Herbal Essences

* Denotes brands that will have interaction indices only. Quantified sources of volume will not be provided for

these brands due to coverage and/or trend issues.

•Volume Equivalency = 1 ounce

•Geography

- Total U.S. Food/Drug/Mass (including Wal*Mart)

•Time Periods-(Pre-period) 52 Weeks ending December 17, 2000-(Post-period) 52 Weeks ending December 16, 2001

Personal Care Brand SwitchingAnalysis Parameters

-*Lever 2000

-*Neutrogena

-Jergens

-Aveeno

-*Calgon

-*Healing Garden

-Sarah Michaels

18,684

26,268

Period One Volume Period Two Volume

Net Volume Gain:

+40.6%

“S” Brand(Net Volume)

VOLUME

SUMMARY OF GAINS:

13.3Brand Switching

New Brand Buyers

New Category Buyers

IRI Multi-Outlet Panel data, 104 weeks ending Dec 16, 2001

Increases consumption of SI

Increased consumption

(+25.0)

“S” grew 27.3% versus YAG just

through new/ increased category

consumption. Brand Switching added another

13.3%.

“S” Net Volume Gains (graphically represented as a percentage of total brand growth)

New Category

Buyers

New Brand Buyers

Switching to SI

Increased

Consumption of SI

� “S” volume growth was spread amongst several different sources. Switching, increased consumption, and new brand buyers made up the majority of growth.

IRI Multi-Outlet Panel data, 104 weeks ending Dec 16, 2001

Net Volume Gain:

+40.6%

0.70.8

2.53.5

0.30.2

-0.60.6

CLAIROL HERBAL ESSENCES

NEUTROGENA

JERGENS

HEALING GARDEN

SARAH MICHAELS

Interaction Index

% Net Volume Gains/Losses

“S” Brand

Source: IRI Multi-Outlet Panel, 104 weeks ending Dec 16, 2001

-422-548

-1,177

-428-442

-129-12

-138-19

-1,226

Source: IRI Multi-Outlet Panel, 104 weeks ending Dec 16, 2001

Volume Losses & Gains Due to Switching

“S” Switching

560688

8901,103

HERBAL ESSENCES

NEUTROGENA

JERGENS

HEALING GARDEN

SARAH MICHAELS

Losses Gains

Brand Switching

SI Brand

Period 1

Competitors

(+) (-)

SI Brand (# units)

Changes in Category

Consumption

New/Lost/Infrequent

Category Buyers

POWER BRANDS

Source: Interbrand

BRAND DEPTH

BRAND WEIGHT

The Key to the power of the brand and

It’s Ultimate Value to the Company

The Key

Is with

The Consumer

Business

Analysis

Market &

Competitive

Trends

Consumer

Insights

Marketing

Financial

Health

Brand Vision

Brand Strategy

Strategic Role

Establish

Positioning

ConceptAnal

Long T

Brand Positioning Basics

“Act of designing the company’s offer and image so that it occupies a distinct and valued place in the target consumer’s minds”

Philip Kotler

“ 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

Branding

Trademark

Branding

Love *

Trust-Mark

POWER BRANDS

•Attached to Consumers

•Deep respect

for the way products

fit into Consumer’s lives

= “Core” of Success

Brand Equity

• A set of stored values that consumers associated with a Product/Service.

• These associations add value beyond the basic product functions due to past investments in marketing the Brand.

Timothy D. Ennis, Ennis Associates, Inc

• Identifying & Establishing Brand Positioning/Values

Grow and Sustain Brand Equity

Measure & Interpret Brand

Performance

Plan & Interpret Brand Marketing

Programs

Identify & Establish Brand

Positioning and Values

• Identifying & Establishing Brand Positioning/Values

Grow and Sustain Brand Equity

Measure & Interpret Brand

Performance

Plan & Interpret Brand Marketing

Programs

Identify & Establish Brand

Positioning and Values

•Mental Maps

•Competitive Frame of Reference

•Points of Parity and POD

•Core Brand Values

•Brand Mantra

What is Brand Positioning?

• Brand Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.

“A positioning must be…One, two or three words, phrases or sentences

about your brand that you want to imprint in the heads of key stakeholders….

Kevin Clancy, Copernicus

“So clear, so succinct, and so powerful that once launched, it begins to move people toward your new evolving brand”

Kevin Clancy, Copernicus

• All about identifying the optimal place of a brand and its competitors in the consumer’s mind

• Maximizing company potential benefit

• The compass that guides marketing strategy

Positioning =

The Heart Of

Marketing

Strategy

• THE POSITIONING STATEMENT DRAWS ON THE STRONGEST ASSETS OF THE BRAND’S EQUITY

– Clarifies what brand is all about

– Uniqueness/Point of Difference

– Why consumers should BUY & USE (Addresses their needs better than competition)

Positioning =

The Heart Of

Marketing

Strategy

• WHO are you going to give this positioning to?

• WHO are you going to market your product to?

• Are all consumers created equal?

• WHAT do they want and need

• What CONSUMER INSIGHT is your positioning based on?

Positioning =

The Heart Of

Marketing

Strategy

Top Brands 2010

Top Australian Brands

Create the most powerful

Positioning you can own and

feel passionately about ….

Towards the most profitable consumer targets

Positioning

State the thought you wish to implant in your target’s mind:

• TO (core target audience), (Brand Name),

• IS THE (frame of reference)

• THAT (owned benefit)

• BECAUSE (support or reason to believe)

Positioning

TO oral health concerned adults, Listerine IS THE only brand of therapeutic mouthwash THAT kills germs that cause bad breath, plaque and gingivitis.

Positioning

TO adults concerned about fresh breath, Scope IS THE brand of cosmetic mouthwash THAT prevents morning breath.

Positioning

Power Positioning

“Where deep understanding of your brand equity or essence links directly to a core consumer insight or value”

Soni Simpson, Your Prof

POWER POSITIONING

Source: Soni Simpson

Power Positioning

Insight Driven Platforms link to Brand Essence

“I want to look and feel sophisticated everyday but without having to pay salon prices”

Tresemme: Professional Affordable Solutions

“Men’s Hair Needs are Different. I want my hair to look in control without the fuss”

Consort: Distinctively male hair care that puts you in control.

“I believe Swiss have near perfect skin. I want the secrets to blemish-free, smooth healthy-looking skin”

St Ives: Discover the Swiss Secrets to Smooth, Radiant Skin

“I like feeling and smelling feminine. Feeling and smelling fresh and clean are an important part of my daily routine in being feminine”

FDS: A gentle all day fresh and clean made just for women.

Product GAP Map

• Expanding Portfolio – Understanding the business

– Leveraging Brand Essence and Consumer Insights

Sample Competitive Map

Traditional Innovative

“Adult

Sophistication”

“Youthful Fun”

Godiva

Tootsie

Skittles

Starburst

Reese’s

Competitive Map

Building Brand Loyalty

2 Brand Knowledge

Marketing

Brand Equity arises from

differences in CONSUMER

response

What CONSUMERS learned,

over time

Reflected in CONSUMER

perceptions, preferences, and

behavior related to all aspects

of the marketing of a brand

2 Brand KnowledgeWhat CONSUMERS learned,

over time

The Key

To Branding

Brand Knowledge

Creates the differential effect

that creates Brand Equity.

The Key

To EQUITY

UNAWARE

NAME AWARENESS

BRAND FAMILIARITY

ACCEPTANCE

REGULAR USAGE

•% Conversion

•Longevity

•Market Presence

% Conversion

•Uniqueness

•Relevance

•Value

UNAWARE

NAME AWARENESS

BRAND FAMILIARITY

ACCEPTANCE

REGULAR USAGE

•% Conversion

•Longevity

•Market Presence

% Conversion

•Uniqueness

•Relevance

•Value

4 Brand Relationships

(WHAT About You

AND ME?)

1 Brand Identity (WHO

Are You?)

2 Brand Meaning

(WHAT Are You?)

3 Brand Response

(WHAT About You?)

Nine ways to manage your brand as an asset

1. Formally link business and brand strategy

2. Create a unique and relevant Brand Identity

3. Create a clear and distinct Positioning

4. Extend your brand strategically

5. Build a strategic Brand Architecture

6. Evaluate and align touch points

7. Consistently deliver on your Brand Contract

8. Practice effective global brand management

9. Set the organization up for success

You are welcome to contact Nigel Bairstow at B2B Whiteboard your source of B2B Asia / Pacific marketing advice

http://www.linkedin.com/pub/nigel-bairstow/6/41b/726

www.b2bwhiteboard.com

http://twitter.com/#!/b2bwhiteboard

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