Branding Concepts and Rules for Building the Killer Brand

I say Nike, You Say What?

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

Advantages of Brands Manufacturers Brands –Customer loyalty –New customers –Enhance prestige –Rapid delivery –Dealer loyalty Private Brands –Higher profits –Less pressure to mark down prices –Manufacturer may drop a brand or become a direct competitor –No control over distribution of M’s brands