1. 1 Chapter 3 Branding Strategy

2. 2 The Brand “The sum of all characteristics, tangible and intangible, that make the offer unique.” Brand NameStarbucks Word Mark Brand Logo Trademark™ Legally Protected Marks

3. 3 Views on Brands “A name, logo, or symbol that evokes in customers a perception of added value for which they will pay a premium price.” John Torella, J.C. Winters Group, Toronto “A product with a personality.” Chris Staples, Rethink, Vancouver Marketing communications in any form has an impact on customers’ perceptions.

4. 4 Benefits of Branding For customers a brand offers: 1.A desired level of quality consistently 2.Psychological rewards from ownership 3.A means of distinguishing one brand from another The brand image helps create loyalty.

5. 5 Benefits of Branding For the company branding offers: 1.A means of communicating features and benefits 2.An opportunity to create and sustain an image 3.Customer satisfaction and repeat purchase opportunity

6. 6 Brand Loyalty “The degree of consumer attachment to a brand.” Recognition Preference Insistence Awareness of name, benefit and package Is useful, consumer will buy if available Will search for; must have

7. 7 Brand Equity The value of a brand in its holistic sense to its owners as a corporate asset. Brands have value. Equity is derived from: Effective marketing strategies A brand’s status in the marketplace A brand’s position among customers

8. 8 The Top 10 Global Brands 1.Coca-Cola$70.4 2.Microsoft$65.1 3.IBM$51.8 4.GE$42.3 5.Intel$31.1 6.Nokia$29.9 7.Disney$28.0 8.McDonald’s$24.7 9.Marlboro$22.2 10.Mercedes$21.4 The highest ranking Canadian brand is Bombardier but it is not in the top 100 yet. Source: Globe and Mail, July 25, 2003.

9. 9 Brand Building 1. Identify Brand Values and Positioning Strategy 2. Plan and Implement the Marketing Program 3. Measure and Evaluate Brand Performance 4. Build Brand Loyalty and Brand Equity

10. 10 Brand Positioning “The selling concept that motivates purchase, or the image that marketers desire a brand to have in the minds of consumers.” A good positioning strategy clearly differentiates a brand from all competing brands.

11. 11 Core Values The primary attributes and benefits a brand delivers to the customer Nike: Inspiration and innovation Tide Laundry Detergent: Removes really tough stains from any material

12. 12 Positioning Strategy Statements A good positioning strategy statement is: Clear Concise Uncomplicated Addresses target needs Communicates a key benefit

13. 13 Sample Positioning Statement “To reinforce our position in the credit card market, and to establish it as the preferred choice for all future purchases.” VISA All you need

14. 14 Positioning Are distinctive and different from competition Have sharp focus and personalities Are not commodities Well positioned brands:

15. 15 Well-Positioned Brands Communicate a distinctive benefit that differentiates them Focus and sacrifice. They don’t try to be all things to all people Develop expertise that serves as a magnet to attract others

16. 16 Positioning Definition Consumers ultimately position a brand based on their perceptions and experiences with the brand.

17. 17 What is my positioning? Volvosafety Cover Girlclean, fresh, natural beauty Federal Expressreliable overnight delivery Dove Beauty Bargentle clean Michelin Tiressafety State Farm Insurancereliable friend when in need Carlsberg Beerbeer for grown ups Mojo radiotalk radio for guys Vector cerealgreat tasting fuel, for serious athletes Porkthe other white meat

18. 18 What is my positioning? Volvosafety Cover Girlclean, fresh, natural beauty Federal Expressreliable overnight delivery Dove Beauty Bargentle clean Michelin Tiressafety State Farm Insurancereliable friend when in need Carlsberg Beerbeer for grown ups Mojo radiotalk radio for guys Vector cerealgreat tasting fuel, for serious athletes Porkthe other white meat

19. 19 The Importance of Positioning Market Analysis Market Analysis Target Market Analysis Target Market Analysis Competitor Analysis Competitor Analysis Positioning Strategy Positioning Strategy Product Strategy Product Strategy Price Strategy Price Strategy IMC Strategy IMC Strategy Distribution Strategy Distribution Strategy

20. 20 Positioning Strategies Product Differentiation Brand Leadership Head-On Innovation Price (Value) Channel Advantage Image (Lifestyle)

21. 21 Develop a positioning strategy statement for: Wal-Mart La Senza Apple Gatorade

22. 22 Branding and IMC There are two key decision areas: 1.Determining the appropriate brand elements to focus on (names, packaging, symbols and characters). 2.Devising an effective marketing communications strategy to communicate the brand’s values and positioning strategy.

23. 23 Packaging and Brand Image A good package design helps build a brand. 1.The “look” of a package must be instilled in the customer’s mind. 2.A package can differentiate one brand from another. 3.Familiarity with a package creates trust with customers. 4.New packages create new products (product forms).

24. 24 Packaging is More Than a Container

25. 25 Roles of Packaging A good package serves three primary functions: 1.Protect the product 2.Market the product 3.Provide convenience to distributors and consumers