Strategic Brand Management

Strategic Brand Management
WELCOME!! Class #1- September 13th, 2004 Soni Simpson

“Brand Team” Introductions
Name Personal Demographics Who You Work for What You Do All Day Undergraduate Focus What Degree You’re Working on What Courses You’ve Completed/Are In Personal Psychographics Something Fun/Unique About Yourself What Motivates You Why You’re Here Tonight Communicate your personal brand essence and call to action In :30 please…

Course Overview What Do You Think You’re Going to Learn this Quarter?
We’re going to define and refine our thinking about brands, what they are and how to manage them We’ll build off text, industry experts & studies, guest lecturers, real life experience and class exercises

Course Overview Ten Weeks + Final (TBD) Brands Consumer Strategy
Marketing Mix Tactics Mid term/activity Metrics Portfolio Management Expansion Global Final Case Study Presentations Personal Positioning Statement OR FINAL!!

Course Overview Typical Class Framework 6:00 Turn In Assignment
6-7:15 Theory Lecture/Discussion 7:15-7:30 Break 7:30-8 Theory Lecture/Discusion 8-9:15 Homework Discussion/ In Class Case Groups WILL change W/Guest Lectures

Course Overview Grading Rubrix Weekly Assignments 15%
Short Group Case Study 15% Mid Term Exam 20% Final Case Study Project 15% Final Case Study Presentation 15% Self Positioning Presentation 10% Final Exam TBD Professionalism 10% Assignments Due at 6pm

Let’s Get Started

AGENDA Top Brands Brand vs Product vs Company Product Levels Brand Definition Brand Relevance Power and Corporate Brands Brand Equity Brand Value Good To Great Companies/Hedgehog TACTICAL Application Brand Share Brand Management Brand Management Task Models IN CLASS CASE STUDIES Self Positioning Product v Brand Case Study Due Next Week

The World's 10 Most Valuable Brands VALUE ($billions) COCA-COLA MICROSOFT IBM GE INTEL NOKIA DISNEY McDONALD'S MARLBORO MERCEDES Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 4, 2003 THE BEST GLOBAL NDS 2003 Global Brands Scoreboard The table that follows ranks 100 global brands that have a value greater than $1 billion. The brands were selected according to two criteria. They had to be global in nature, deriving 20% or more of sales from outside their home country. There also had to be publicly available marketing and financial data on which to base the valuation.

The World's 10 Most Valuable Brands VALUE ($billions) COCA-COLA MICROSOFT IBM GE INTEL NOKIA DISNEY McDONALD'S MARLBORO 10 MERCEDES Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002 Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.

The World's 10 Most Valuable Brands – 2003 Data: Interbrand Corp., J.P. Morgan Chase & Co / Brandchannel.com Feb 2004

What is a Product? Kotler’s Five levels to a product: Expected Product
Potential Product Augmented Product Expected Product Generic Product CORE BENEFIT

Generic Product Expected Product Augmented Product Potential Product The Fundamental Need or Want that consumers satisfy by consuming the product or service CORE BENEFIT

CORE BENEFIT Expected Product Augmented Product Potential Product Generic Product Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features.

CORE BENEFIT Augmented Product Potential Product Generic Product Expected Product Attributes and Characteristics that buyers normally expect and agree to when they purchase a product

Augmented Product Additional product attributes, benefits, or related services that distinguish the product from competitors CORE BENEFIT Potential Product Generic Product Expected Product

Potential Product All the augmentations and transformations that a product might ultimately undergo in the future CORE BENEFIT Generic Product Expected Product Augmented Product

All the augmentations and transformations that a product might ultimately undergo in the future Potential Product Potential Product Augmented Product Augmented Product Additional product attributes, benefits, or related services that distinguish the product from competitors Expected Product Expected Product Attributes and Characteristics that buyers normally expect and agree to when they purchase a product Generic Product Generic Product Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. CORE BENEFIT The Fundamental Need or Want that consumers satisfy by consuming the product or service

What is a Brand? Not simply a product -- anything offered to a market for attention, acquisition, use, or consumption that might satisfy a need or want. A product can be: Physical good Service Retail Store Person Organization Place Idea

What is a Brand? Product = Commodity Brand = “Mind Set”
A product is a produced item always possessing these characteristics: Tangibility Attributes and Features Brand = “Mind Set” The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits. Timothy D. Ennis, Ennis Associates, Inc

What is a Brand? Derivation Heritage AMA (technical definition)
Old Norse “brandr” = to burn branding livestock Heritage A means to distinguish goods from one producer vs another. AMA (technical definition) “Name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition”

What is a Brand? AMA defines a brand vs a Brand.
What does the AMA definition leave out?

What is a Brand? Keller’s Definition:
A product, but one that adds other dimensions that differentiate it in some way from other products designed to satisfy the same need. Rational and tangible Symbolic, emotional and intangible The psychological response to a brand can be as important as the physiological response.

What is a Brand? Product = Commodity Brand = “Mind Set”
A product is a produced item always possessing these characteristics: Tangibility Attributes and Features Brand = “Mind Set” The sum of all communications and experiences received by the consumer and customer resulting in a distinctive image in their “mind set” based on perceived emotional and functional benefits. Timothy D. Ennis, Ennis Associates, Inc

Why Does A Brand Matter? MANUFACTURERS
ID to simplify handling or tracing Legal protection of unique features Signal of quality level to satisfied customers Means of endowing products w/unique associations Competitive Advantage Financial Returns CONSUMERS ID Product Source Assignment of responsibility to maker Risk reducer Search cost reducer Promise, bond, or pact w/make of product Symbolic Device Signal of Quality

What is a Brand? Products don’t exist in a void…
They are bought because consumers have found something they relate to in them, something which they value Brand = Credible Guarantee

What is a Brand? Relative Brand Distinction
The more distinctive or different a brand is in the consumers “mind set”, the stronger brand preference becomes. This is critical to keeping competition from the consumer’s consideration. Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Brand Distinctive Strong Brand Perceived by the Consumer as Unique Timothy D. Ennis, Ennis Associates, Inc

What is a Brand? Relative Brand Distinction
A brand’s preference is primarily built through differentiation and relevance Insulate product from competition OWN Something Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Distinctive Strong Brand Perceived by the Consumer as Unique Timothy D. Ennis, Ennis Associates, Inc

BRAND DISTINCTION by Timothy D. Ennis
What is a Brand? Generic Product CORE BENEFIT Expected Product Augmented Product Potential Product Kotler’s Five Levels of A Product Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Distinctive Strong Brand Perceived by the Consumer as Unique BRAND DISTINCTION by Timothy D. Ennis

What is a Brand? Generic Product CORE BENEFIT Expected Product Augmented Product Potential Product Kotler’s Five Levels of A Product Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Distinctive Strong Brand Perceived by the Consumer as Unique BRAND DISTINCTION by Timothy D. Ennis OWN Something

What is a Brand? What Makes the Best Brands?
Source of company wealth for generations Improves with Age Develop clearly defined personalities Develop affection & loyalty of the public Become parents to sub-brands and brand extension Brands = Powerful emotional tools

What Is a Brand? Truly understood brands are the things which patrol the boundary between people and the world outside them. A brand with an emotional difference can potentially command a premium forever.

Case Groups Definition: Product Service Corporation Brand

Corporation vs Service vs Product vs Brand

Alternative Branding Models
Company dominates Brands Company is equal to Brands Brands dominate the Company American Express (cards) BMW (Motorcycles) Colgate (Total toothpaste) Disney (Films) General Electric (appliances) IBM (Technology) L’Oreal (Cosmetics) Sony (Electronics) Holiday Inn (Crowne Plaza) Anheuser Busch = Budweiser Campbell Soup = Godiva Chrsyler = Jeep Estee Lauder = Clinique Kraft = Maxwell House PepsiCo = Mountain Dew Time Warner = Warner Bros 3M = Scotch Tape Marriott = Courtyard Skol (Am Bev) Claridge Hotel (Savoy) Crest (P&G) Healthy Choice (Con-Agra) Hidden Valley Ranch (Clorox) Kleenix (Kimberly-Clark) Marlboro (Philip Morris) MCA Records (Universal Studios) Wranlger (VF Jeans) Kevin Clancy, Copernicus

The World's 10 Most Valuable Brands VALUE ($billions) COCA-COLA MICROSOFT IBM GE INTEL NOKIA DISNEY McDONALD'S MARLBORO MERCEDES Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 4, 2003 Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.

POWER BRANDS The World's 10 Most Valuable Brands - 2002
VALUE ($billions) COCA-COLA MICROSOFT IBM GE INTEL NOKIA DISNEY McDONALD'S MARLBORO 10 MERCEDES Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 5, 2002 Interbrand’s Assessment is of Brand Power – the fullest possible view of each brand’s strengths and potential as a marketing and financial asset.

POWER BRANDS The Successful Brands Don’t JUST sell products
Communicate Clear Values Stretch Across a Number of Products Attached to Consumers/ NOT Products Individualized Relationships

POWER BRANDS Allow Consumers to clearly identify and specify products which genuinely offer added value. Deep respect for the way products fit into consumer’s lives = “core” of success Consumer Relationship = Loyalty Social Changes in their favor

POWER BRANDS Assessing BRAND POWER BRAND DEPTH BRAND LENGTH
BRAND BREADTH POWER BRAND WEIGHT Interbrand

POWER BRANDS Assessing BRAND POWER BRAND WEIGHT
The influence or dominance that a brand has over its category or market (more than just market share) BRAND WEIGHT Interbrand

POWER BRANDS Assessing BRAND POWER BRAND LENGTH
The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category) BRAND LENGTH Interbrand

POWER BRANDS Assessing BRAND POWER BRAND BREADTH
The breadth of franchise that the brand has achieved both in terms of age spread, consumer types and international appeal BRAND BREADTH Interbrand

POWER BRANDS Assessing BRAND POWER BRAND DEPTH
The degree of commitment that the brand has achieved among its customer base and beyond. The proximity, the intimacy and the loyalty felt for the brand. Interbrand

Power Brand = Master Brand?
Manifestation of Brand Essence A term that USED TO apply only to overarching family brands (Nestle) NOW applies to entire companies that rally around a single brand identity Focus on entire value proposition rather than a single product’s functionality

Branding the Corporation
Brands are not just products but companies: Ford IBM Sony Why has marketing refocused efforts on the potential of corporate brands?

Cost of creating and supporting product brands has become prohibitive $1Bil to develop a brand across US, EC, FE Increasing retailer power Traditional brand management not as effective/efficient Focus moving up the value chain

Brand Relationship Spectrum
Master Branding the Corporation Enhances Brand… Clarity Clear brand priorities Synergy Every exposure generates awareness Leverage Corporate brand in all Company strategies

Thus, Benefits of Corporate Branding: Every marketing dollar benefits each one of a company’s division/products Attracts and inspires employees, stakeholders and business partners Supplier and Vendor relationships deeper and longer term Connects up goodwill generated by operations + adds public support/PR in crisis

Benefits of Corporate Branding: New product launches/extensions cheaper and quicker Long Term strategic focus Financial performance and value creation can be enhanced

What Might be Some of the Difficulties? Organizations can be extremely complex Wide variety of audiences make consistent proposition communication difficult Too many businesses: Easier to build a rep & image when one is known for one product or service

What Might be Some of the Difficulties? Led from the top. CEOs are difficult to pin down for day-to-day brand management Business Directors often have finance or operations backgrounds – not marketing

Master Brands Class Examples of Master Brands

Branding Different outcomes result from the marketing of a product or service because of its brand name brand element brand identification WHAT ELSE?

Brand Equity Common Denominator to interpret the potential effects and trade offs of various strategies and tactics Common Denominator for assessing the value of a brand

Brand Equity Fundamentally, stresses the importance of the role of the brand in marketing strategies. Marketing effects uniquely attributed to the brand Represents the ADDED VALUE endowed as a result of past marketing investments. Bridge between the past and future possibilities

Brand Equity A set of stored values that consumers associated with a Product/Service. These associations add value beyond the basic product functions due to past investments in marketing the Brand. Timothy D. Ennis, Ennis Associates, Inc

Brand Equity How can Brand Equity be created?
How can Brand Equity be measured? How can Brand Equity be used to expand business opportunities?

Brand Equity Brand Ingredients: Brand Name & heritage
Packaging (structure & graphics) & signage Brand symbols, properties and logos Perceived quality, reliability & convenience Defined level of satisfaction Meaningful (premium) price/value relationship Purchase & usage experiences Consumer perceptions, attitude & behaviors Emotional associations with the product/services Timothy D. Ennis, Ennis Associates, Inc

Brand Equity Physical Product Attributes Quality Uses
Kevin Clancy, Copernicus modified by Soni Simpson

Brand Customer Relationship
Brand Equity BRAND GESTALT Brand Personality Physical Product Attributes Quality Uses Visual Appearance Logo Brand Customer Relationship Country of Origin User Imagery Emotional Benefits Tangible Benefits Kevin Clancy, Copernicus modified by Soni Simpson

Brand Equity The Coca-Cola Brand Is… 1800’s Heritage The Real Thing
Americana Red & White Striped Can Vanilla Coke Sold Everywhere Authenticity Battles with Pepsi

Brand Equity The Mc Donald’s Brand Is… The Big Mac Happy Meals
French Fries Red and White Restaurants Fun For Children Ronald Mc Donald Golden Arches Value for Your Money

Brand Equity A synthesis of all elements, physical, aesthetic, rational AND emotional. End result = appropriate differentiated relevant

Brand Imposing One’s Will On
Branding OLD SCHOOL THINKING DIPLOMA Brand Imposing One’s Will On The Consumer

Branding “ Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.” - Kevin Roberts, Saatchi and Saatchi

Branding Love * Mark TradeMark Trust-Mark

fit into Consumer’s lives
POWER BRANDS Attached to Consumers Deep respect for the way products fit into Consumer’s lives = “Core” of Success Those Brands which are particularly well adapted to the environment and which thus, survive and flourish.

Brand Equity A set of stored values that consumers associated with a Product/Service. These associations add value beyond the basic product functions due to past investments in marketing the Brand. Timothy D. Ennis, Ennis Associates, Inc

Brand Value Breakdown $US Billions

Brand Value Measurable Financial Value
Legal Systems recognize brand value Most countries now recognize intellectual property is REAL property w/rights of ownership Trademarks, Patents, Designs, Copyright Consumer Value

Brand Value Multiple values for a brand
Communicated through every medium from shelf to advertising to editorial to word-of-mouth. Coca-cola Bottle shape Can color Logo type face Taste Youthful messages FORMULA Are Brand Values Equal?

Brand Value Three Tiers of Brand Value Functional Values
Expressive Values Central Values Interbrand; The World’s Greatest Brands.

Brand Value Corresponding to Brand Hierarchy Pyramid
Central Expressive Functional

Brand Value Functional Values: Govern product performance
Coke refreshes its drinker Volvo gives its driver a safe ride IBM PC provides quick computing Don’t differentiate products Pepsi refreshes Mercedes is as safe as Volvo Apple is as quick as IBM Brand Owner’s “bright ideas” can be instantly copied in every continent Interbrand; The World’s Greatest Brands.

Brand Value Expressive Values:
Say less about the product & more about the consumer Reflect and enhance the consumer’s sense of him/herself Provide a key source of brand differentiation Marlboro’s - masculine values Armani’s - status and fashionable values Apple - creative and human values Interbrand; The World’s Greatest Brands.

Brand Value Central Values: Most Enduring
Right to the Core of the Consumer’s Belief System At their purest = embodied in religious, national or political persuasions Comparable power = embody mass movements or cultural trends 1960’s Coke “I Like to teach the world to sing” Today= Nike “Just Do It”, Richard Branson’s Irreverent Virgin Interbrand; The World’s Greatest Brands.

Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers Central Expressive Functional Easy to deliver and explain to consumers but also easy to imitate Interbrand; The World’s Greatest Brands.

Central Expressive Functional Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers Beliefs & Core Values Benefits Features & Attributes Easy to deliver and explain to consumers but also easy to imitate Hierarchy : Timothy D. Ennis, Ennis Associates, Inc

Brand Value: Brand Hierarchy Pyramid
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL) Beliefs & Core Values The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE) Benefits Product/Service features and/or attributes that must be addressed (FUNCTIONAL) Features & Attributes Easy to deliver and explain to consumers but also easy to imitate

Mc Cormick: The Taste You Trust I take pleasure in how the family enjoys the meals I prepare CENTRAL VALUE Beliefs and Core Values EXPRESSIVE Benefits Brand I Trust / Taste You Trust Part of making food my way Makes a meal/dish an eating pleasure Makes prepared meals taste better Brings out the best in foods FUNCTIONAL Features & Attributes Let me adjust to make it my own * Can be used with any dish * Adds flavor, Spicy * For everyday use * Has a lot of products I use * Easy to find when shopping * Largest variety of spices, extracts, dry seasonings, and mixes

Brand Hierarchy Pyramid vs Product Level
Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers Generic Product CORE BENEFIT Expected Product Augmented Product Potential Product Beliefs & Core Values Benefits Features & Attributes Easy to deliver and explain to consumers but also easy to imitate

Brand Value OK…Values are Essential…BUT Are they enough?
What is missing??

Brand Value Values Need to be Harnessed & Honed The Force
Brand Builder’s Vision Big Idea Conviction

Brand Vision To build successful brands while your competitors turn their brands into commodities start with a five-step process Kevin Clancy, Copernicus, Counter Intuitive

Brand Building Kevin Clancy Copernicus’s 5 Step Process Transform-
ational Strategy Model-Based Marketing Planning Obsessive Implement- ation Diagnostic Metrics Inspirational Vision Kevin Clancy, Copernicus, Counter Intuitive

Brand Vision Brand Vision LIFTS the Brand above the mundane and functional Appeals to Expressive and Central VALUES Process creates a bond with the consumer, and hopefully, long-term loyalty

“Where there is no vision, the people perish.”
Brand Vision The First thing you need to do is create a marketing vision to rally your forces. “Where there is no vision, the people perish.” Proverbs 29:18

Brand Vision “Something supposedly seen by other than normal sight”
“The ability to see something not actually visible” “A force or power of imagination” “The experience of having a revelation” “Something supernaturally revealed as to a prophet”

Brand Vision MUST BE: Exciting, even inspirational, to all of your stakeholders: customers and prospective customers, managers and employees, analysts, reporters – everyone. Kevin Clancy, Copernicus, Counter Intuitive

i.e. YOU NEED A BIG HAIRY VISION
Brand Vision MUST BE: So big, so bold and so audicious that expressing it – never mind executing it – has a transformational effect. You start to become what you want to be. The dream and the reality fuse. Kevin Clancy, Copernicus, Counter Intuitive i.e. YOU NEED A BIG HAIRY VISION

Brand Vision Checklist
Inspirational & uplifting; it moves people Exciting; it gets the blood pumping Aspirational; it is barely attainable Readable; it is clearly communicated Unique/special/different Very specific, not general Connotes superiority or domination Bold and brash; it oozes with confidence Causes people to want to invest in/work for the company or buy the company’s products Transformational, revolutionary, not evolutionary

Brand Vision Let’s review some published vision statements
Assign them a college grade from 0 to 100. Kevin Clancy, Copernicus, Counter Intuitive

Brand Vision A beverage company
“We exist to create value for our shareholders on a long-term basis by building a business that enhances the company’s trademarks.” Grade = 63 Kevin Clancy, Copernicus, Counter Intuitive

Brand Vision A beverage experience company
“To have bigger brand awareness then Coca-Cola.” Big Hairy Audacious Goal David Sutton, Zyman Marketing

Brand Vision A motorcycle company “Yamaha Wo Tsubusa!”
Kevin Clancy, Copernicus, Counter Intuitive

“We will crush, squash, slaughter Yamaha!”
Brand Vision A motorcycle company “We will crush, squash, slaughter Yamaha!” Grade = 85 Kevin Clancy, Copernicus, Counter Intuitive

Brand Vision A technology company
“To eclipse IBM as the #1 technology company in the world.” Grade = 91 Kevin Clancy, Copernicus, Counter Intuitive

Brand Vision A gasoline company
“We will become the dominant brand in the service station industry and beyond – with the friendliest, fastest, cleanest stations everywhere – one of the most admired brands on the planet.” Grade = 96 Kevin Clancy, Copernicus, Counter Intuitive

VISION to ASSET LEVERAGE
Tellis and Golder five factors and rationale as the keys to enduring brand leadership Vision of the Mass Market Managerial Persistence Financial Commit-ment Relentless Innovation Asset Leverage Gerard Tellis & Peter Golder “First to Market, First to Fail? Real Causes of Enduring Market Lendership” MIT Sloan Management Review, 1/1/96

Brand Building Kevin Clancy Copernicus’s 5 Step Process Transform-
ational Strategy Model-Based Marketing Planning Obsessive Implement- ation Diagnostic Metrics Inspirational Vision Kevin Clancy, Copernicus, Counter Intuitive

Brand Vision MUST BE: So big, so bold and so audicious that expressing it – never mind executing it – has a transformational effect. You start to become what you want to be. The dream and the reality fuse. Kevin Clancy, Copernicus, Counter Intuitive i.e. YOU NEED A BIG HAIRY VISION

What is a Brand? Generic Product CORE BENEFIT Expected Product Augmented Product Potential Product Kotler’s Five Levels of A Product Products (Commodities) No Difference Except Price Brand Name Well Known But Similar Distinctive Strong Brand Perceived by the Consumer as Unique BRAND DISTINCTION by Timothy D. Ennis OWN Something

POWER BRANDS Assessing BRAND POWER BRAND LENGTH
The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category) BRAND LENGTH Interbrand

The World's 10 Most Valuable Brands VALUE ($billions) COCA-COLA MICROSOFT IBM GE INTEL NOKIA DISNEY McDONALD'S MARLBORO MERCEDES Data: Interbrand Corp., J.P. Morgan Chase & Co / Business Week AUGUST 4, 2003 GOOD – TO –GREAT CASES Results T +15 yr* Abbott x Circuit City x Fannie Mae 7.56x Gillette 7.39x Kimberly-Clark 3.42x Kroger 4.17x Nucor 5.16x Philip Morris 7.06x Pitney Bowes 7.16x Walgreens 7.34x Wells Fargo 3.99x Data: Ratio of cumulative stock retruns relative to the general stock market Jim Collins, Good To Great

Brand Vision HEDGEHOG Concept The Essential Strategic Difference between the Good-to-Great companies: Founded their strategies on deep understanding along three key dimensions Translated that understanding into a simple, crystalline concept that guided all their efforts Jim Collins, Good To Great i.e. YOU NEED A BIG HAIRY VISION

What are you deeply Passionate About
Brand Vision A Hedgehog Concept: Is not a goal to be the best, not a strategy to be the best, not an intention to be the best not a plan to be the best It is AN UNDERSTANDING of what you CAN be the best at. What are you deeply Passionate About What you Can be The Best in the World at What Drives Your Economic Engine Jim Collins, Good To Great

Brand Vision A Hedgehog Concept “Focusing solely on what you can potentially do better than any other organization is the only path to greatness.” …Equally important they know what they cannot be best at. …It is an understanding Jim Collins, Good To Great What are you deeply Passionate About BHAG What you Can be The Best in the World at What Drives Your Economic Engine

Brand Vision A Hedgehog Concept “Good to Great Companies know they should only do those things that they can get passionate about.” “They asked the right questions.” Jim Collins, Good To Great What are you deeply Passionate About BHAG What you Can be The Best in the World at What Drives Your Economic Engine

Brand Vision BIG HAIRY VISIONS & GOALS Bad BHAGs set with bravado, Good BHAGS set with understanding What are you deeply Passionate About What you Can be The Best in the World at What Drives Your Economic Engine BHAG Jim Collins, Good To Great

Branding How do we measure one brand’s performance vs another brand?

Branding Brand Share of Market:
Measuring a brand’s percent of sales in a market Can be measured nationally, regionally and at retailers Data captured via Scanner data (IRI, Nielsen) Industry trends A nnual reports

Branding Measuring Brand Share of Market Unit $$ Unit $$
Sales Sales Share Share National 120 $ % 100% Brand A % 5.6% Brand B % 5.6% Brand C % 2.6%

Branding Measuring Brand Share of Market Category Sales = Brand Share
Brand Sales Category Sales = Brand Share

Branding Are ALL Brands Created Equally?
How Does Brand Usage Compare to Category or Competitive Usage? Are Brands Equally Strong in Different Regions? Measuring Brand Development Using Brand Share Metrics

Brand Management As much ART as SCIENCE As much SCIENCE as ART
Achieved by combo of Specialist talent Long term vision Analytic wizardry

What is Brand Management?
Entrepreneurs are building brands (Ben & Jerry’s, Yahoo…) Creating a whole new brand Riskiest Most lucrative Six to Seven of Ten brands launched fail

Majority of Brand Builders main task take existing brand legacy adapt brands to suit the requirements of more sophisticated consumers.

Components of Main Brand Builders task Embrace the increasing possibilities for communicating brand values Acknowledge growing financial pressures on brands to make a return. Issue: Agencies are communicators..some given responsibility to modify core brand values…brand owners may run into difficulties with this later..

Marketing as Brand Management’s responsibility is to build long-term profitable growth for the company’s brands.

To accomplish this, marketing must: Deliver sustained value to consumers Enhance brand equity by keeping their brands relevant, fresh and contemporary Build consumer loyalty towards their brand

What is a Brand Management?
Brand Building Begins By Understanding & anticipating the needs and desires of the consumer Understanding the key attributes of the product(s) Our Mission is to DISCOVER (rather than Invent) the brand’s CORE VALUES and abide by them.

Brand = Primitive God If we keep it’s laws And pay regularly the tributes due (mainly advertising), fortune will smile on us – otherwise, disaster.

“You have to maintain and replenish a brand over time or it will die”

Brand Vision and Essence
BRAND = Mindset EQUITY = Roots ESSENCE = Brand’s Soul VISION = Brand’s DNA

Functional Excellence in Support of the Brand Primary Source of Differentiation Product/service innovation and communication Purpose of the Brand Create or reinforce product distinctiveness Firmwide Leadership in Stewarding the Brand Primary Source of Differentiation Customer experience, in addition to innovation and communication Purpose of the Brand Provide clear set of values along which to align all enterprise activities and investments Corporate Executive Board

Functional Excellence in Support of the Brand Marketers Responsibilities Deduce customer interests from market research data Develop and refine brand strategy Control advertising and promotion planning and execution Develop new line extensions Firmwide Leadership in Stewarding the Brand Marketers Responsibilities Generate customer insight from all points of customer contact Develop & Refine brand values, and translate into expectations for each function and role Influence customer experience across all touch-points, from communication through transaction and service Leverage brand into new, relevant industries, marketplaces or customer segments Corporate Executive Board

Functional Excellence in Support of the Brand Marketers Responsibilities Defend marketing budget Base decisions primarily on marketing judgement Determine success through intermediate measures (awareness, recall, brand equity) Brand Architecture Multiple, unrelated brands Firmwide Leadership in Stewarding the Brand Marketers Responsibilities Champion shareholder value Base decisions on marketing judgement supported by comprehensive customer database and/or modeling of all key inputs and outputs Determine success using a dashboard of selected intermediate and bottom-line measures Brand Architecture Single brand or few, interrelated brands

Functional Excellence in Support of the Brand Locus of Brand Ownership Brand Managers Firmwide Leadership in Stewarding the Brand Locus of Brand Ownership Chief Marketing Officer Corporate Executive Board

Brand Management is reliant on entire corporation and agency teams In Operationalizing the brand, the highest priority is to enlist the support of each member of the team

Innovative Analysts Archeologists Sociologists Politicians General Managers Templar Knights of Equity Evangelists Brand Stewards Brand Champions

Parallel Path Strategic Growth Model (Soni’s Standard Operating Procedure) Selling your ideas is challenging. First, you must get your listeners to agree with you in principle. Then, you must move them to action. Use the Dale Carnegie Training® Evidence – Action – Benefit formula, and you will deliver a motivational, action-oriented presentation.

Guiding Focused Strategic Growth Parallel Path Process
Building Brands NOT Growing Products PATH 1: Strategic Plan for Long Term Explosive Growth $ We’ve got a PATH 2: Business to Run

Review & analyze business and consumer trends Interview ALL key internal players, all vendors, buyers? Read all research on-hand & obtained #1 Full Business Immersion Path 1: Strat Plan for High Growth

Interview ALL key internal players, all vendors, & buyers/brokers Review & analyze business and consumer trends Read all research on-hand & obtained #1 Full Business Immersion Path 1: Strat Plan for High Growth

SET STRATEGIC PLAN #5 Full Team Brainstormings #4 Vision >>Objectives >>Strategies #3 Brand Essence/Consumer Insight #2 Full Business Immersion #1 Path 1: Strat Plan for High Growth

ASK & Listen Focus on Immediate Business Issues Ensure All Priorities & Deadlines are met Work Current Plan #1 Short Term: Running The Business

ADJUST SHORT TERM PLAN #5 Full Team Brainstormings #4 Strat & Tactic Successes/Failures #3 Facts vs Folklore #2 Work Current Plan #1 Path 2: ST Running The Business

$ $ #5 SET STRATEGIC PLAN ADJUST SHORT TERM PLAN Full Team Brainstorm #4 Vision >>Objectives >>Strategies Strat & Tactic Successes/Failures #3 Brand Essence/Consumer Insight Facts vs Folklore #2 #1 Full Business Immersion Work Current Plan Path 1: Strat Plan for High Growth Path 2: ST Running The Business

$ $ #5 SET STRATEGIC PLAN ADJUST SHORT TERM PLAN Building Brands NOT Growing Products Full Team Brainstorm #4 Vision >>Objectives >>Strategies Strat & Tactic Successes/Failures #3 Brand Essence/Consumer Insight Facts vs Folklore #2 #1 Full Business Immersion Work Current Plan Path 1: Strat Plan for High Growth Path 2: ST Running The Business

In Class Exercises: Product and Brand Hierarchy Exercise: 9/13 Self Positioning: 9/20 DuPont Case Study 9/20

SELF POSITIONING Develop your own personal positioning statement to share with your group this week. Have your group provide you feedback this week. Define your target audience in the process: what they need to know and why? What makes you unique and why? Have in writing to turn in and share next week.

What is a Product? Kotler’s Five Levels to a Product: Expected Product
Additional Product attributes, benefits, or related services that distinguish the product from competitors Potential Product Potential Product Augmented Product Additional product attributes, benefits, or related services that distinguish the product from competitors Augmented Product Expected Product Attributes and Characteristics that buyers normally expect and agree to when they purchase a product Expected Product Generic Product Basic Version of the product containing only those elements absolutely necessary to function. No distinguishing features. Generic Product CORE BENEFIT The Fundamental Need or Want that consumers satisfy by consuming the product or service

PRODUCT LEVEL LEVEL BRAND Name/Positioning Potential Product
Electronic Communication Device or Juice Drink BRAND Name/Positioning Potential Product Augmented Product Expected Product Generic Product Core Benefit

Very meaningful in differentiating our Brand but very difficult to deliver consistently to our consumers The emotional beliefs and values that consumers feel are being addressed by our brand (CENTRAL) Beliefs & Core Values The functional and emotional benefits that our product/services provides to the consumer (EXPRESSIVE) Benefits Product/Service features and/or attributes that must be addressed (FUNCTIONAL) Features & Attributes Easy to deliver and explain to consumers but also easy to imitate

BRAND HIERARCHY LEVEL BRAND Name/Positioning Central
Electronic Communication Device or Juice Drink BRAND Name/Positioning Central Beliefs and Core Values Expressive Benefits Functional Features and Attributes

Did your output change with the Brand Hierarchy vs the Product Level approach? What about the Consumer? How did you create this brand without the Consumer Insights? What about your BHV?

Assignments for 9/20/03

09/20/03 ASSIGNMENT SBM Chapters 1-3, DuPont Case Study Good/Bad branding comparative one-pager and images Be prepared to discuss group Hierarchy exercise and Personal Positioning Statements

THANK YOU! Soni Simpson

Strategic Brand Management

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Strategic Brand Management

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