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8/7/2019 Brand Corporate
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BRAND MANAGEMENT
What is a brand?
Threats to brands in the New Economy
What makes a strong brand?
Elements of a brand
Brand equity
Brand chartering
Brands and the organisation
Positioning the Brand
Brand identity
Communicating the BrandBrand extensions
Brand loyalty
Global brands
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Brand: A Definition
ACCORDING TO MARKETING THEORY:
a name, term, symbol or design, or a combination of them, which isintended to signify the goods of one seller or groups of sellers and todifferentiate them from those of competitorsKotler (1994), Marketing Management
RATHER DEFINE A BRAND IN RELATION TO THE CUSTOMER:
is the means by which the company establishes arelationship with
the customer (because a brand has an identity and a personality anda product not)
A sum of all available information about the company, product orservice, gained from experience (functional and emotional),differentiating it from another. The appeal is both rational andemotional level; tangible and intangible
The space in consumers hearts and minds that belongs to youA/O
The reason to choose you over the other guys
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What is a Brand? Product vs Brand
A product is something that is made in a factory; a
brand is something that is bought by a customer. A
product can be copied by a competitor; a brand is
unique. A product can be quickly outdated; a successful
brand is timeless.
Stephen King (WPP Group, London)
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Brands are under Treat
SOURCES OF THREATS ON BRANDS:
Educated consumers
Became marketing literate; brands had to offer real added
value; trend: loyal customers became loyal to group of brands
rather than to a single brand.
Powerful retailersStrong retailers dictate terms to manufacturers (e.g. Pick n
Pay); retailer builds own brand (Woolworths) customer loyal
to retailer rather than product; only 1 label sold (power of the
retail brand).
Both of the above leading to pressure on pricesNo added value consumer will not pay price premium; trend
demand both low prices AND added value
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Brands are under Treat (cont)
The growth of own label
If the retailer represents some strong brand values itself, the way is clear
for own label products (Woolworths; Pick n Pay) e.g. own Colas
Brand extension instead of innovation
Brands which in the past were built through real technical innovation can
no longer keep pace, and may choose instead to extend an existing brand
into new areas or variants. Can enhance brand, but there is danger ofbrand dilution or of confusing the customer (e.g. Pierre Cardin).
New competition from outside the sector
Existing strong brands looking to extend their franchise into other areas
also pose a threat (e.g. Virgin). NB! New competitors like this are hard to
fight because they are playing a different game.
A/O
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What makes a Strong Brand?
It must work as a product or service no fancy advertising or
clever logo will compensate
Must appeal on both the rational and emotional level
products may all work well; price premium is justifid by
additional intagible, emotional benefits.
Must be integrated and coherent tangible and intangible
benefits must be consistent with each other to present a
coherent and believable brand personality (TAG-Heuer)
What it offers must be wanted by the customer and mean
something to him/her what is relevant may change over
time: e.g. environmentally friendly is a relevant benefit
now for products from motor cars to holidays; 30 years ago
no premium paid for these products.
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Examples of Successful Branding
Ingredient / Component branding Lycra, Teflon
Corporate Shell, Virgin, Old Mutual
Newspapers Financial Mail, Financial Times (UK)
Supermarkets Woolworths, Pick n Pay
Convenience stores -- 7 Eleven, 8 to LateSpeciality retailers Cape Union Mart, The Body Shop
??
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Elements of a Brand
APPROACH: Separate the physical attributes from
emotional benefits. What lies at the core of the brandsidentity?
Essence(CORE)
Emotional benefits
Physical Attributes
Arnold, D (1992), The Handbook of Brand Management)
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The Anatomy of a Brand
MARLBORO
Strength &independence
Sense offreedomand
strength
Americanimagery
Masculine Contemporary
Strongflavour
Boldness &independenceMarlboro
man(cowboy)
Marlboro
country
Endorsement of male/sports activities
Brownfilter
Strengthandflavourof blend
Red & whitepackaging
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Brand Mapping (class exercise)
Break down a well-known brand that is familiar to everyone in
the group into its various elements (see Marlboro):Nandos
Castle Lager
Levis
Land Rover
Samsung
VW
Waterman
Adidas
Harley-Davidson
Nokia
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Brand Equity
Strong brands can be assets to companies and
organisations
1980s: concept of brand equity describe the sum of
these assets
Brand equity needs to be nurtured and defended
Brand equity can be measured both internally and
externally
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Brand Equity Defined
Brand Equity can be defined as consisting of 5 assetcategories:
Brand awareness
Brand loyaltyPerceived quality
Brand associations in addition to perceived quality
Other proprietary brand assets (patents, trademarks,etc)
Aaker, D (1996), Building Strong Brands
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Brand Equity
BRAND EQUITY
Brand Loyalty
Nameawareness
Perceived quality
Brandassociations
Other proprietarybrand assets
Provides value to Customerby enhancing Customers
Interpretation /Processing ofInformation Confidence in thePurchase Decision Use satisfaction
Provides Value to Firmby Enhancing: Efficiency and
Effectiveness ofMarketing Programmes Brand Loyalty Prices/Margins Trade Leverage Competitive Advantage
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Measuring Brand Equity
Interbrand tracks leading brands on a number ofvariables:
Sales
Market growthInternationalisation
Well protected in law, etc.
Good practice to measure your own and the
competition brands part of broader evaluation ofstrategic health of company.
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Brand Dimensions (according toInterbrand)
BRAND WEIGHT (dominance)
BRAND LENGTH (stretch)
BRAND BREADTH (franchise)
BRAND DEPTH (commitment)
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Brand Weight
Dominance in category or market
Dominant market share (market leaders)
Standard setter
McDonalds, Coca-Cola, Kodak, Gillette
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Brand Length
Stretch and strechability into new categories and
markets
Wide area of competence
Disney, Johnson & Johnson, Harrods, Virgin, Sony
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Brand Breadth
Breadth of franchise in terms of age spread, consumertypes and international appeal.
A broad brand can cross social, cultural and national
boundaries.
Coca-Cola, MaDonalds, Kodak, Somy, Visa, Microsoft
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Brand Depth
Degree of commitment the brand has achieved amongits customer base and the proximity, intimacy and
loyalty they feel to the brand.
Intimate relationship with customers, usually on the
basis of shared central or higher values.
Apple Computer, Disney, Body Shop, Harley-Davidson,
Camel
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Brand Chartering
Recent development (concept)
Tough internal audit to charter the underlying strength
of their brands on a regular basis
Brand Chartering probes the organisation (strategic
strengths) behind the brand
Brand Equity strength of the brand in the marketplace
How to do brand chartering:
Is there a common interpretation of the brands
essential meaning throughout the organisation?
What core competencies does the brand represent?Would the people be proud to be called
manifestations of the brand?Macrae, C (1996), The Brand Chartering Handbook
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Brand Identity
DEFINITION OF BRAND IDENTITY
Brand identity is how the company wants the brand to
be perceived.
Aaker (1996), Building Strong Brands
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Brand Identity
Must be relevant to customer needs and wants
Must be clear and easy to understand
Is at the heart of the relationship between customer andcompany
Heart of any brand strategy
Has a personality of its own
Has human qualities which appeal to customers
See brand as a person and ask:
If this brand were a person, what sort of car would itdrive?
What is its favourite drink?
What would it say to you?
If answer is not obvious, the brand personality and also brandidentity is not clear
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Brand Extension
A way ofstrengthening a brands positioning
Recent example of classic line extension: McGraw-Hill--publisher of textbooks and educational materials intochildrens educational software. They started with the brandslong-standing reputation for educational excellence. Virgin
Todays definition of brand extension:
GlobalisationDemographic shifts new classes of consumers
Technology new channels of marketing (Internet,Satellite TV)
Industry consolidations fewer brand choices; likely tobecome loyal to one
Increasing emphasis on relationships customers wantbrands to be accountable for their products and promises.
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Brand Extension (cont)
4 WAYS TO EXTEND:
Licensing
Pierre Cardin to a variety of marginal products brand weakened
Co-brandingDisney and McDonalds there has to be a fit
Sponsorships
E.g. Olympic Games linking up with big events
Brand agents
Individuals that are not only celebrities, but stiremotions that support the brand in a meaningfulway (e.g. Tiger Woods & Nike)
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Brand Loyalty
Customers become loyal ifbrand identity is communicated
effectively and positioned positively in their minds
However, this does not mean they will never buy any other brand
Customers tend to use repertoires of brands rather than single
brands
The specific brand they buy on any one occasion will depend onother factors such as availability, special price offers, recent
advertising campaigns, point of sale factors.
Highly educated and affluent groups are found to be less loyal! (not
willing to pay a price premium for branded products)
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Brand Loyalty
Brand Loyalty
Reduced Marketing Costs
Trade Leverage
Attracting New Customers: Brand awareness created Reassurance to new customers
Time to respond to competitivethreats
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How to Maintain Brand Loyalty
Brand Loyalty
Treat the Customer right
Stay close to the Customer
Measure / ManageCustomer Satisfaction
Create a solution for aCustomer Problem /Reward loyalty
Provide Extras
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Brand Awareness
Top ofMind
Brand Recall
Brand Recognition
Unaware of Brand
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Global Brands
Global brands can reap benefits of economies of scale in
production, marketing and distribution. They must stay
responsive of customer wants may vary from one
country or region to another. The issue ishow to balance
global economies of scale with local responsiveness.
Country specific?Other factors (youth, luxury?) not country specific
Different type of channels?
Competition local or international?
Communication will have to be different even for globalbrands (Coke has more than 20 different advertisement
versions)
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Positioning the Brand (Definition)
DEFINITION OF BRAND POSITIONING:
A companys attempts to influence the customers (targetmarkets) perception of its brand by presenting (communicating)it in a certain way through:
AdvertisingPoint of sale material
Direct mail
PR
Etc
NB! The brand is actually positioned by the consumer all thecompany can do is send positioning prompts to influence.
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Positioning: How to Build a Brand that Sells
Focus
Choose one distinctive thing that will give you the edgeHalo effect
Invest in one positive image that will impact on the wholeportfolio
Start with current position
Turn current customer perceptions into benefits (if gapbetween perception and reality is too big, they wont makethe leap)
Be different
Positioning is about clear, positive difference
Be distinctive
Message need to be unique, hard-hitting, sensory, creative
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Developing a Brand Positioning
3 ESSENTIAL COMPONENTS FOR DEVELOPING A
CLEAR BRAND DEFINITION:
Clear vision why are you in business?; where areyou going? (3M: to solve unsolved problemsinnovatively)
Concise meaning what your brand represents tothe marketplace
Understand parameters of relevance whatyour brand is and what it is not (limits to which youcan extend your brand beyond its core meaningwithout compromising your credibility)
Examples Disney (clear vision to make peoplehappy); Microsoft (vision a computer on everydesk in every home)
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Positioning Organisational Alignment
ORGANISATIONAL ALIGNMENT PROGRAMME
Use tagline or theme can make or break brandbuilding
Identify a few words that communicate the full weightand force of brand message
All activities get their energy from this positioningdevice.
Tagline must:
Provide clear and recognisable differentiation
Respond to customers most pressing needs in abelievable manner
Provide guidance for management decision-making,hiring, training and resource allocation
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Positioning the Brand Key Factors
Successful brands are not created overnight result of
careful positioning, supported by long term strategies
and consistent investment
Frequent change in brand positioning customer
becomes confused
Considerable time and effort must be spent in
understanding how the customer perceives the brand,
before thought can be given to changing that
perceptionChanges in customer perception only achieved in
small steps over long periods of time
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Positioning & Communication Process
3 steps:
Choose brand identity
Begin positioning
Communicate (marketing mix):
Product / service (together with packaging, logo,design)
Price (including discounts, etc)
Place (where and how it is distributed)
Promotion (advertising above and below the line,
PR, sponsorship, etc)
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Positioning & Communication
Positioning is the development and communication of a
differential advantage that makes the organisations product
or service superior and distinctive in the perception of target
customers.
Positioning should be meaningful to the target market
segment, believable and unique (biggest, most reliable, etc).
Positioning involves giving the target market segment the
reason for buying your product.
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Positioning Map
High
High
Low
Low
Price
Quality
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Communicating the Brand (cont)
Recently, experts have stressed the inadequacy ofrelying on mass media to communicate a brand:
Cost ofmass media is increasing
Poorly targeted for todays increasingly fragmentedmarkets
Use the new media -- direct marketing, databasemarketing and building relationships (vouchers, free
samples, advice booklets build relationship withcustomer). Rather rely on these to communicatebrands successfully
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Communicating the Brand (cont)
INTERACTIVE BRAND COMMUNICATION
New phenomenon brought on by:
Reduced effectiveness of mass media advertising
Emergence of the new media
Emphasis on relationship and database marketingOther
Free telephone numbers
Care lines
Eliciting feedback (not just complaints) fromcustomers
Loyalty cards and clubs (e.g. Voyager)
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Brand Management in the New Economy
Brand used to guide all activities surrounding it
Coordinate these activitiesManage relationships with external partners and agencies(research companies, advertising agencies, and channels)
Whole organisation must understand brand
Integrated approach to brand management key issues:
Cross functional working
Company culture
Internal communication
CEOs important role to personify the brand (e.g. RichardBranson, Bill Gates, Raymond Ackerman)
The corporate brand is of increasing importance (e.g. Virgin)
the corporate brand sells the product!New corporate identities created if parent company hasinappropriate or unclear associations (Flora Food Co, Unilever)
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New Keys to Brand Building
Use ofmarketing communications (mass-market
advertising-agency model) as primary driver of corporatebrand management is fast becoming obsolete.
Replaced by an array of communications channels thatcan target increasingly narrow customer segments.
All experiences affect brand image. Customer experienceis key to brand building (e.g. Harley Davidson owner
groups, rallies)Align communication of brand to all 4 main audiences customers, investors, employees and regulators (media,public interest organisations). Align -- key to buildingbrand equity.
Communication messages need to line up withexperiences of customers.
Ensure that entire business deliver the promise implicit inthe brand (favourable advertising versus negativeservice experience the latter will be remembered)
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Class Discussion
BMW
BMW cannot afford to allow the emotional appeal ofthe brand to be displaced by purely technicaldimensions.
How can BMW build new emotional and intangiblehooks?
What do you think BMWs branding strategy should
be?
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Class Discussion
Canon
What makes the Canon story special?
Discuss / evaluate the Canon communicationstrategy
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Websites on Positioning
http://www.aniota.com/~jwhite/success0.html
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