To Brand or Not to Brand? Concepts and Rules for Building the Killer Brand Chapter 11

Some Important Concepts… Brand Name: The part of a brand that can be spoken including letters, words and numbers. Brand Mark: The elements of a brand that cannot be spoken Brand Equity: The value of company and brands names. Master Brand: A brand so dominant that it comes to mind immediately when a product category, use, attributes or benefit is mentioned.

A look at Master Brands Baking Soda Adhesive Bandages Rum Gelatin Soup Cream Cheese Crayons Petroleum Jelly Arm & Hammer Band-Aid Bacardi Jell-O Campbell’s Philadelphia Crayola Vaseline

Brand Mark

Logo/Name

So what is it exactly… Attributes, benefits, values, culture, personality and user Research techniques: word associations, personifying the brand, laddering up the brand essence

Benefits of Branding Branding distinguishes products from competition Product Identification Aids in repeat sales Aids in new product sales Aids in attracting loyal customers and segments It is the image, baby!

What is Brand Equity?? A set of assets and liabilities linked to a brand’s name and symbol that add or subtract from the value provided by a product or service to a firm and/ or that firm’s customers. Aaker, David A. (1991), Managing Brand Equity: Capitalizing on the Value of a Brand Name, The Free Press, New York Aaker, David A. (1991), Managing Brand Equity: Capitalizing on the Value of a Brand Name, The Free Press, New York

BrandEquity Awareness Competitive Advantage Associations Perceived Quality Loyalty For more see: Aaker, David A. (1995), Strategic Market Management, 4th ed., Wiley, NY

The World’s 10 Most Valuable Brands – Interbrand 8/5/02 RankBrandValue (billions) 1Coca Cola$69.6 2Microsoft$64.1 3IBM$51.2 4GE$41.3 5Intel$30.9 6Nokia$30 7Disney$29.3 8McDonald’s$26.4 9Marlboro$ Mercedes$21

Benefits of Brand Equity Leverage when bargaining with distributors and retailers Charge higher price for product Launch extensions Some defense against price wars Brand valuation

Faithful or Fickle? A look at brand loyalty Cigarettes 71% Mayonnaise65% Toothpaste61% Coffee58% Athletic shoes27% Canned veggies25% Garbage bags23%

Branding Decisions Brand or not to brand? Brand sponsor decision Brand name decision Brand strategy decision Brand repositioning decision

Branding Strategies Brand No Brand Manufacturer’s Brand Private Brand Individual Brand Family Brand Combi- nation Individual Brand Family Brand Combi- nation

Brand Strategy Decisions Line extensions – existing brand to new sizes, forms, flavors etc. Brand extensions – brand names extended to new product categories Multibrands – flanker brands Cobranding – combination of two or more brands New brands

Three Questions to Ask Krispy Kreme Starbucks

So How do You Do This?? Some tips from “Brand Warfare: 10 Rules for Building the Killer Brand” by David D’Alessandro

R1: It’s The Brand, Stupid Brand arrogance was once commonplace –Brands that were once invincible are shadows of their former selves (ABC, CBS, NBC) The consumer revolution –Consumer attitudes changed – don’t trust “big” –Cheaper to enter business and create brands (amazon - $300,000) –Information access for consumers When the consumer rules, arrogance kills –The power of choice & importance of differentiation

R2: Co dependency can be Beautiful… People pay attention to brands – they need them Brands save time –Think OTC drugs Brands project the right image –“No one can fault you for buying an IBM” Brands provide an identity –Brand communities (Harley; Ebay); comfort levels

R3: A Great Brand Message is Like a Bucking Bronco – once you are on, don’t let go… Brand New? Who is it going to be. Brand Old? What is it and where should it go. Which is easier?? Its not the idea that rules, it’s the execution Brand message has to speak to consumers Keep it relevant and consistent

R4: If you want Great advertising, be prepared to fight for it Beware of flatterers It is not necessarily good advertising that the client is after Be memorable Don’t change the advertising because you are bored with it.

R5: When it comes to sponsorships, there is a sucker born every 30 seconds Get in for the right reasons Understand the players –The event organizer, TV Networks, the athletes and their entourages Look for a balance of power

R6: Don’t Confuse Sponsorship with a Spectator Sport Use the sponsorship every day in every way Set the right expectations Make sure you achieve something measurable and real

R7: Do not allow scandal to destroy in 30 days a brand that took 100 years to build Brand is destiny Do not allow your enemies to define you Do not stall. Do not allow the lawyers to stall. You can run – but you cannot hide