Microsoft PowerPoint - Day 2 .2- Auditing and Building Brand Equity.pptStrategic Brand ManagementStrategic Brand Management
Exeter MBA and MSc Exeter MBA and MSc –– Day 2Day 2
Lecture 2Lecture 2
Jack Buckner
Jack Buckner
ElliottElliott’’s Synthetic Model of Brand Equitys Synthetic Model of Brand Equity
Brand
Equity
Perceived
Quality
Knowledge, Identity,SalienceKnowledge, Identity,Salience……....
–– RecogniseRecognise
–– RecallRecall
Brand Image Brand Image –– a wider construct including a wider construct including
personality and salience (salience is % with personality and salience (salience is % with
an opinion)an opinion)
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BRAND IMAGE
perceived
value proposition to be actively
communicated to a target audience
Jack Buckner
management……..
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Image – big but British….
Develop identity – truly global,
favourite airline
Brand Equity examplesBrand Equity examples
The Saturn Story The Saturn Story –– Aaker Aaker ““A different kind A different kind
of company, a different kind of car.of company, a different kind of car.””
““For God, Country and CocaFor God, Country and Coca--ColaCola”” –– Mark Mark
PendergrastPendergrast, Collier Books, Collier Books
Intel Corporation Intel Corporation –– Keller, appendicesKeller, appendices
Jack Buckner
Positive attribute benefitsPositive attribute benefits
Source: Ehrenberg et al(1997) Differentiation or Salience JAR
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–– AgeAge
psychodrawingpsychodrawing
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THE TIMES
Attributes that are relevant, meaningful and Attributes that are relevant, meaningful and
valuable to the consumervaluable to the consumer
““MeaninglessMeaningless”” differentiationdifferentiation
Simplification of choiceSimplification of choice
Gets attention in a crowded marketGets attention in a crowded market
–– Alberto Natural Silk Alberto Natural Silk ““we put silk in a bottlewe put silk in a bottle””
Jack Buckner
““Differentiate or DieDifferentiate or Die”” Jack TroutJack Trout
Return to the USPReturn to the USP
Owning attributesOwning attributes
Marketing specialityMarketing speciality
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Apple Apple –– product innovationproduct innovation
IKEA IKEA –– retail and valueretail and value
Volkswagen Volkswagen –– marketing and designmarketing and design
Using differentiation from image to identity and then position
Jack Buckner
The adidas Trefoil StudyThe adidas Trefoil Study
Understanding a brandUnderstanding a brand’’s image to develop a s image to develop a
new identitynew identity
Across Germany and the UKAcross Germany and the UK
Sports and nonSports and non--sports participantssports participants
Different ages rangesDifferent ages ranges
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Key FindingsKey Findings
The Equity in the Trefoil was almost as The Equity in the Trefoil was almost as great as the Swooshgreat as the Swoosh
Despite limited marketing for the previous Despite limited marketing for the previous 10 years10 years
Performance logo on all sports teams Performance logo on all sports teams athletes in 1990athletes in 1990’’ss
Performance logo in all communication Performance logo in all communication (approximately (approximately ££40 million pa in UK alone)40 million pa in UK alone)
Even amongst 15Even amongst 15--17 year olds17 year olds
Jack Buckner
The power of logosThe power of logos
And And ““underground marketingunderground marketing””
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The new identity The new identity
Launch a sports fashion brand with the Launch a sports fashion brand with the
Trefoil Trefoil
Allow the Performance logo to represent Allow the Performance logo to represent
sportsport
Jack Buckner
Fashion Function
Link between Brand Identity and Link between Brand Identity and
Mission/visionMission/vision
Strong and clear identities often impact Strong and clear identities often impact
upon (or are derived from) company upon (or are derived from) company
mission/visionmission/vision
strategic planningstrategic planning
Strong brands tend to have strong links Strong brands tend to have strong links
between brand image / identity / position between brand image / identity / position
(internal and external)(internal and external)
Jack Buckner
Source: Collins & Porras “Building your company’s vision” HBR 96
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Core Ideology
Core Values
national status
the impossible
Purpose
Envisioned Future
Bold Goals
changing the worldwide poor-quality
around the world.. We will be the first Japanese
company to go into the US market and distribute
directly…fifty years from now our brand names
will be as well known as any in the
world..signifying innovation and quality as good
as any..
Source: Collins & Porras “Building your company’s vision” HBR 96
Jack Buckner
KellerKeller
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ElasticityElasticity
Moving down market is always easier than Moving down market is always easier than
moving up marketmoving up market
Moving down market is a temptation (some Moving down market is a temptation (some
would say a necessity) todaywould say a necessity) today
ItIt’’s hard for mass brands to niches hard for mass brands to niche
Diversification is easier the stronger the Diversification is easier the stronger the
core brandcore brand
Jack Buckner
But in real life itBut in real life it’’s messiers messier……
The chances are a brandThe chances are a brand’’s equity will be perceived s equity will be perceived
differently by different parts of the organizationdifferently by different parts of the organization
Image, identity and position is Image, identity and position is ““ownedowned””
throughout the organizationthroughout the organization
Sales Sales –– lower priceslower prices
Head office Head office –– brand puritybrand purity
National markets National markets –– reflect local identityreflect local identity
Retailers Retailers –– force competition with other brandsforce competition with other brands
Jack Buckner
Customers
Align finance with brand managementAlign finance with brand management
Agree measures and set targetsAgree measures and set targets
Contribution and brand image objectivesContribution and brand image objectives
Risks Risks –– marketing budgets discretionary and marketing budgets discretionary and
the easiest to cutthe easiest to cut
Disconnections especially between HQ and Disconnections especially between HQ and
country organizationscountry organizations