Building Strong Brand Dr. Ananda Sabil Hussein

Steps in Strategic Brand Management Identifying and establishing brand positioning Identifying and establishing brand positioning Planning and implementing brand marketing Planning and implementing brand marketing Measuring and interpreting brand performance Measuring and interpreting brand performance Growing and sustaining brand value Growing and sustaining brand value

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.

The Role of Brands Identify the maker Simplify product handling Organize accounting Offer legal protection

The Role of Brands Signify quality Create barriers to entry Serve as a competitive advantage Secure price premium

What is Branding? Branding is endowing products and services with the power of the brand. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-6

What is Brand Equity? Brand equity is the added value endowed on products and services, which may be reflected in the way consumers, think, feel, and act with respect to the brand.

Brand Knowledge Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-8 Knowledge Thoughts Experiences Beliefs Images Feelings

Advantages of Strong Brands Improved perceptions of product performance Improved perceptions of product performance Greater loyalty Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to competitive marketing actions Less vulnerability to crises Less vulnerability to crises Larger margins More inelastic consumer response Greater trade cooperation Increased marketing communications effectiveness Possible licensing opportunities Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-9

Apple is a Strong Brand

Brand Dynamics Pyramid Presence Relevance Performance Advantage Bonding Strong Relationship Weak Relationship

Aaker Model Brand Identity Extended Identity Elements Brand Essence Core Identity Elements

Brand Resonance Pyramid

Brand Elements Elements Slogans Brand names URLs Logos Symbols Characters

Internal Branding Choose the right moment Choose the right moment Link internal and external marketing Link internal and external marketing Bring the brand alive for employees Bring the brand alive for employees

Measuring Brand Equity Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-16 Brand Audits Brand Tracking Brand Valuation

Managing Brand Equity Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-17 Brand Reinforcement Brand Revitalization Brand Crises

Devising a Branding Strategy Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-18 Develop new brand elements Apply existing brand elements Use a combination of old and new Use a combination of old and new

Branding Terms Brand line Brand line Brand mix Brand mix Brand extension Brand extension Sub-brand Sub-brand Parent brand Parent brand Family brand Family brand Line extension Category extension Branded variants Licensed product Brand dilution Brand portfolio Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-19

Brand Naming Individual names Blanket family names Separate family names Corporate name- individual name combo

Reasons for Brand Portfolios Increasing shelf presence and retailer dependence in the store Increasing shelf presence and retailer dependence in the store Attracting consumers seeking variety Attracting consumers seeking variety Increasing internal competition within the firm Increasing internal competition within the firm Yielding economies of scale in advertising, sales, merchandising, and distribution Yielding economies of scale in advertising, sales, merchandising, and distribution Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 9-21

Brand Roles in a Brand Portfolio Flankers Low-end Entry-level High-end Prestige Cash Cows

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

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

Differentiation Strategies Product ChannelImage Personnel

Product Differentiation Product form Product form Features Features Performance Performance Conformance Conformance Durability Durability Reliability Reliability Reparability Reparability Style Design Ordering ease Delivery Installation Customer training Customer consulting Maintenance

Strategies for Sustaining Rapid Market Growth Improve product quality, add new features, and improve styling Improve product quality, add new features, and improve styling Add new models and flanker products Add new models and flanker products Enter new market segments Enter new market segments Increase distribution coverage Increase distribution coverage Shift from product-awareness advertising to product-preference advertising Shift from product-awareness advertising to product-preference advertising Lower prices to attract the next layer of price- sensitive buyers Lower prices to attract the next layer of price- sensitive buyers

Marketing Product Modifications Quality improvements Quality improvements Feature improvements Feature improvements Style improvements Style improvements

Ways to Increase Sales Volume Convert nonusers Convert nonusers Enter new market segments Enter new market segments Attract competitors ’ customers Attract competitors ’ customers Have consumers use the product on more occasions Have consumers use the product on more occasions Have consumers use more of the product on each occasion Have consumers use more of the product on each occasion Have consumers use the product in new ways Have consumers use the product in new ways