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BRAND MANAGEMENT AND NEW PRODUCT DEVELOPMENT
SECTION 5Brand Management and the Firm
Brand Types and Characteristics
ALAN L. WHITEBREAD
THE FOUR STEPS OF BUILDING A BRAND
• Brand identity– Who are you? Steve Jobs oldie video– It should be positive, memorable, protectable, not
myopic or time-based, and transferable.
• Brand meaning– What are you?
• Brand response– How do I think or feel about you?
• Brand relationships– What type of a connection do we have?
BUILDING A BRAND
• BRAND IDENTITY FORMS– The corporate brand is the only brand name used
• Frequently seen in B2B
– The company and the brand are together• DuPont Teflon, IBM Blade Server, Philips, Siemens
– The combination brand by Company X• Product name by Company X [common in acquisitions]
– The individual/product brand with minor mention of Company X
• Clairol, Crest, Folgers, Noxzema, Pampers, Puffs, Tide – Proctor and Gamble
– The brand represented / distributed by X• A common practice in B2B [especially in resellers] especially
when they use “authorized”
TYPES OF BRANDS
GENERICPharmaceuticals, Vegetables
GENERICPharmaceuticals, Vegetables
+INDIVIDUAL / PRODUCTHuggies, P&G soaps, Crest
+INDIVIDUAL / PRODUCTHuggies, P&G soaps, Crest
CO-BRANDINGPost Oreo O’s cereal, Disney SUV
INGREDIENT BRANDINGIngredient name + brand name
NutraSweet diet drinks, Dolby sound system
CO-BRANDINGPost Oreo O’s cereal, Disney SUV
INGREDIENT BRANDINGIngredient name + brand name
NutraSweet diet drinks, Dolby sound system
+CORPORATE / FAMILY Nike, IBM, GE, RCA
+CORPORATE / FAMILY Nike, IBM, GE, RCA
PRIVATE LABELKenmore, Craftsman, Die-Hard
Great Value, …
PRIVATE LABELKenmore, Craftsman, Die-Hard
Great Value, …
+COMBINATIONHP Deskjet, DuPont Stainmaster
+COMBINATIONHP Deskjet, DuPont Stainmaster
BRAND LICENSEDisney
BRAND LICENSEDisney
PRIVATE LABEL BRANDS
Are generally a threat only to brands that are 1. Overpriced
The value equation is wrong because the real or perceived benefits are not sufficient.
2. Under-supportedVery small IMC relative to what is needed to build or sustain a
brand.
3. Undifferentiated Very poor differentiation [if any] and probably some
combination of bad POP, IMC, …
PRIVATE LABELS: SOME DISHWASHERS
Maytag®
AdmiralJenn-Air®
Jenn-Air Pro-Style®
Magic ChefMaytag Jetclean®IIIMaytag Jetclean®IIMaytag Jetclean®
NorgeHardwick
GE®
GE®
GE ProfileTM
GE SpacemakerTM
Hotpoint®
GE Monogram®
Kenmore
Electrolux®
Electrolux IconGibson
KelvinatorWhite-Westinghouse
FrigidaireFrigidaire Gallery
Frigidaire ProfessionalTappan®
GEKenmore
Whirlpool®
Roper®
Estate®
Whirlpool®
Whirlpool Gold®
KitchenAid®
KitchenAid BRIVA®
[In-sink dishwasher]
KenmoreKenmore Elite
Kenmore UltraWash®
See http://www.ajmadison.com/cgi-bin/ajmadison/item_list/cat00263/Built_In_Dishwashers.html for more.See http://www.appliance.com/dishwashers/list.html for a list of firms.
PRIVATE LABEL BRANDS
• PRIVATE LABEL NOTES– Some people differentiate a private label brand as
one that identifies the source of the product and a generic brand as one that does not identify the source. [honey at Wal-Mart]
– Private labels are called store brands for retailers.
– Private labels for wholesalers and distributors may or may not have detailed specifications and may or may not identify the source of the product.
BUILDING A BRAND
• PRIVATE LABEL BRANDS– Manufacturer’s brands [OEM]
• Manufacturer A makes products for Manufacturer B so the market believes Manufacturer B is making the products.
– ?
– Reseller’s brands• B2B
– Nearly all mail order firms
• B2C– Sears Craftsman tools, DieHard batteries, and Kenmore
appliances / almost all retailer brands
BUILDING A BRAND
• PRIVATE LABEL BRANDS– Counter brands or Generic brands
• Usually the same ingredients as the major brand and imitates it in nearly all aspects – same size package, information is identical and in the same place, etc.
– Wal-Mart Equate brand
– Fakes or Knock-offs• Illegal versions of usually major brands
– CDs, movies, software, …– CBP video
B2B BRANDS
• Most are unknown by the average consumer.– Known: Alcoa, Intel, – Unknown: FMC, Lexan, TIVAR
• Important considerations– Company reputation and financial stability– Capacity, flexibility, service level[s] – NPD
POSITIONING: BRAND IDENTITY
• Vision [includes purpose / need fulfillment]• What makes it different?• What makes it recognizable?
– This is a part of but not the same as identity– As seen from sender’s side!
• Sight– Graphic symbol [logo]
• Sound– Name
• Slogan or tag line• Must penetrate the noise.
BRAND IDENTITY TRAPS
• Each of these approaches is too limiting or tactical.
BRAND IMAGE[tactical]
BRAND IDENTITY
[strategic]
BRAND POSITION
[enduring]
How the brand is currently perceived
[The customer determines who you are]
How we want the brand to be perceived
[Must be a visionary positive projection]
The part of the brand identity and value proposition that is communicated to the target audience.
[a focus on attributes [features] restricts the brand identity]
POSITIONING: BRAND IMAGE
• Brand image [as seen from receiver’s side]– Perceptions of the product– Must not be distorted by the noise– If you are doing a great communications job,
brand image will be very close to the brand identity.
– Understanding the receiver’s side• Use a Mental map / Mind map
– A graphical technique that takes advantage of the brain’s
associative capability not just is linear capability.– Tony Buzan Mind Map [Concept Mapping] video
MIND MAP
7-Up
Sweet
Sticky
Children
Bittersweet
Lemon
Adult
Fresh
Thirst quencher
Carbonated
Sparkling
Cool
Do run-flat tires as a quick one as a class exercise.http://www.autoevolution.com/news/michelin-tweel-airless-tires-production-starts-will-motorcycles-get-them-video-89369.html#
REMEMBER THE BENEFITS OF STRONG BRANDS
• Increased customer loyalty
• Increased brand recognition
• Stronger competitive position
• Larger gross and pre-tax margins
• Increased trade cooperation [channel strength / channel members]
• Increased IMC effectiveness
REMEMBER – STRONG BRANDS PROVIDE POTENTIAL FOR
• a corporate brand
• brand extensions
• product line extensions
• licensing and / or franchising
POSITIONING: FIRST STEPS
• Four key questions must be answered before you begin to evaluate positioning alternatives.– Why does the brand exist?
• Brand identity
– Who is the brand for?• Market segmentation; market profiles [descriptions]
– Why are the benefits meaningful?• Market research to determine rank order
– What are we competing against?• SWOT analysis; competitive analysis; product charts
POSITIONING: FIRST STEPS
• Why does the brand exist?– The brand vision [brand promise for the consumer].
• NIKE– “self-realization through exercise” → I care about doing
my best
– Brand benefits must be rank ordered by perceived value for each target market [segment].
• Who is the brand for?– Precise market segmentation and target marketing
are required.
POSITIONING: FIRST STEPS
• Why are the benefits meaningful?– What proof exists?– Are they in rank order starting with the most important?– How are the benefit messages conveyed?
• What are we competing against?– You must understand the nature of competition.
• By level [direct, various indirect]• By product for direct competitors• By company [by probability of competing and how they
compete]• By substitute products
SELECTING BRAND ELEMENTS
• Six criteria should be used to do this.1. Memorable: easy to recognize and recall
2. Meaningful / descriptive / interesting / rich in visual and verbal imagery
3. Likeable aesthetically and emotionally
4. Transferable within and across product, geographic, or cultural boundaries
5. Adaptable, flexible over time to keep from becoming stale or outdated
6. Legally and competitively protectable [IP]
A SUCCESSFUL BRAND
• When you have positioned a brand correctly, it has all of the following characteristics.– Recall [physically, imagery, familiarity]– Personality [character]– Culture [group]– Relationship [meaning to the customer]– Customer reflection [perception]– Self-image
POSITIONING: BRAND IDENTITY
• Vision [includes purpose / need fulfillment]• What makes it different?• What makes it recognizable?
– This is a part of but not the same as identity– As seen from sender’s side!
• Sight– Graphic symbol [logo]
• Sound– Name
• Slogan or tag line• Must penetrate the noise.
BRAND RECOGNITION QUIZ - #2
for extra test points13+ = 5 10-12 = 4 7-9 = 3 4-6 = 2 <4 = 1 point[s]
Take out a sheet of paper.Print your name at the top.Number the rows from 1 through 15.Print your answers for each of the following on the correct line.
Major brand or company names only. No product names.
NAME THE BRANDS
1 2
3 4
NAME THE BRANDS
5 6
7 8
What can brown do for you?
NAME THE BRANDS
9 10
11 12
Deep green industrial products
Paper and medical products and a red logo
Bright red retail store Mustard yellow heavy industrial products
NAME THE BRANDS
13 14
15
Bright orange retail store Robins egg blue box
Logo in a bright red ball
NAME THE BRANDS
1 2
3 4
Ferrari Nabisco or Oreo
Burger King Mars candies
NAME THE BRANDS
5 6
7 8
What can brown do for you?
Starbucks Nike
UPS McDonald’s
NAME THE BRANDS
9 10
11 12
Deep green industrial products
Paper and medical products and a red logo
Bright red retail store Mustard yellow heavy industrial products
Target Caterpillar
3M Corporation John Deere
NAME THE BRANDS
13 14
15
Bright orange retail store Robins egg blue box
Logo in a bright red ball
Home Depot Tiffany
Coca-Cola