Managing Brand Equity Dec 5, 2008 BrandAmplitude, LLC All Rights Reserved

Some Enduring Brands

Some questions to consider… What makes brands great? Why do some brands endure? Why do some brands struggle? When should a brand stay the same? And when should it change? How should brands be launched? Why do brands die? How do brands become “hot”? 06/07/09

What makes brands great?

Why do some brands endure?

Why do some brands struggle?

When should a brand stay the same?

And when should it change?

How should brands be launched?

Why do brands die?

How do brands become “hot”?

The Long Term View Maintaining a brand requires constant vigilance, knowing when to pile on, when to ‘twist’ and when to start over.

Maintaining a Brand over Time Nivea and Dove How do their strategies differ? Which is most effective?

Line extensions Brand revitalization Importance of cultural relevance Today

Line extensions

Brand revitalization

Importance of cultural relevance

LINE EXTENSIONS

Line Extend or Build New Brand? No hard and fast rules Lots of examples on both sides Understand role of new brand in portfolio Build affinity Build revenue Need to understand ability of existing brand to stretch With consumers and trade Assess risks as well as rewards of stretching The “Spandex Rule” says just because you can doesn’t mean you should! Severe penalties for stretching too far But! Must be willing to ‘do to yourself before others do unto you

No hard and fast rules

Lots of examples on both sides

Understand role of new brand in portfolio

Build affinity

Build revenue

Need to understand ability of existing brand to stretch

With consumers and trade

Assess risks as well as rewards of stretching

The “Spandex Rule” says just because you can doesn’t mean you should! Severe penalties for stretching too far

But! Must be willing to ‘do to yourself before others do unto you

Winners & Losers http://www.tippingsprung.com/form/index.html Iams Pet Insurance Febreze Scentstories Black & Decker iron with Downy wrinkle release chamber Antiques Roadshow Furniture (Pulaski license)

What Were They Thinking? Barbie Jewelry Jaguar X Harley Cake Decor Hooters Airline Maxim Haircolor for Men

No shortage of examples Brand Failures: The Truth about the 100 Biggest Branding Mistakes of All Time by Matt Haig

Successful Extensions Leverage Equity

Positioning Provides Framework to Explore Equity Extensions Source: Alice Tybout & Tim Calkins, Kellogg on Branding

Extending Vertically Urge to take luxury or premium brand to booming value segment can be attractive Tiffany boutiques Cadillac Cimarron David Aaker suggests avoiding whenever possible, better to use a subbrand or even better, a totally new brand Old Navy (Gap) Boston Piano (Steinway)

Urge to take luxury or premium brand to booming value segment can be attractive

Tiffany boutiques

Cadillac Cimarron

David Aaker suggests avoiding whenever possible, better to use a subbrand or even better, a totally new brand

Old Navy (Gap)

Boston Piano (Steinway)

Some Principles for Brand Extensions High equity brands stretch farther Attribute associations harder to stretch than abstract benefits Successful extensions make future extensions easier Extensions need a reason for being – avoid confusing consumer by adding new brands if necessary

High equity brands stretch farther

Attribute associations harder to stretch than abstract benefits

Successful extensions make future extensions easier

Extensions need a reason for being – avoid confusing consumer by adding new brands if necessary

REVITALIZING BRANDS

When a Brand Loses Its Luster Return to roots to recapture lost sources of equity Neutralize negative associations Shore up positive associations Identify and establish new sources of equity Broaden ways to use the brand, use more of the brand when it is consumed, or use the brand in more ways Reintroduce to new generation of users Milk for profit and retire

Return to roots to recapture lost sources of equity

Neutralize negative associations

Shore up positive associations

Identify and establish new sources of equity

Broaden ways to use the brand, use more of the brand when it is consumed, or use the brand in more ways

Reintroduce to new generation of users

Milk for profit and retire

Great Comebacks How did Triarc revitalize Snapple after its disastrous sale to Quaker?

Principles for Revitalizing Understand what happened Be willing to walk away Heritage and nostalgia are NOT a strategy for brand revitalization Act pre-emptively

Understand what happened

Be willing to walk away

Heritage and nostalgia are NOT a strategy for brand revitalization

Act pre-emptively

BRANDS & CULTURE

Themes Power of (authentic) storytelling to successful branding Relationship of self-identity to consumerism Dangers of overreliance on branding at expense of innovation How brands can leverage culture to go beyond traditional marketing Importance of historical perspective on brands Relationship of culture to brand success Ethical issues arising from gaps between product reality and brand image Can traditional brand strategy tools make a brand great? Difficulty of staying culturally relevant over time

Power of (authentic) storytelling to successful branding

Relationship of self-identity to consumerism

Dangers of overreliance on branding at expense of innovation

How brands can leverage culture to go beyond traditional marketing

Importance of historical perspective on brands

Relationship of culture to brand success

Ethical issues arising from gaps between product reality and brand image

Can traditional brand strategy tools make a brand great?

Difficulty of staying culturally relevant over time

Branded Nation: The Marketing of Megachurch, College, Inc. and Museumworld “ He argues that public companies and non-for profits both build their brands through telling stories and that a good marketing plan is one with a memorable story (Where’s the Beef?) while an ineffective one is forgotten (Herb of Burger King). Twitchell goes on to explain that the purpose of the book is to examine the non-profit world to determine if story telling (brand building) has made it so that the product itself (church service or class) doesn’t actually provide value, while the brand name does.” – Dustin Ruch

“ He argues that public companies and non-for profits both build their brands through telling stories and that a good marketing plan is one with a memorable story (Where’s the Beef?) while an ineffective one is forgotten (Herb of Burger King).

Twitchell goes on to explain that the purpose of the book is to examine the non-profit world to determine if story telling (brand building) has made it so that the product itself (church service or class) doesn’t actually provide value, while the brand name does.”

– Dustin Ruch

Obsessive Branding Disorder “ Conley does an excellent job taking a closer look at the philosophical and social implications under a branding-heavy society. He asserts that managing an identity inherently implies a separation from that identity; “a brand is something to be controlled rather than any expression of authenticity,” he concludes.” … Indeed, he urges all to apply reason and intellect to see a company’s brand illusion for what it is. – Brian Weberman

“ Conley does an excellent job taking a closer look at the philosophical and social implications under a branding-heavy society. He asserts that managing an identity inherently implies a separation from that identity; “a brand is something to be controlled rather than any expression of authenticity,” he concludes.” … Indeed, he urges all to apply reason and intellect to see a company’s brand illusion for what it is.

– Brian Weberman

Buying In “ Essentially, Walker’s point is that we buy brands and product in order to tell a story about ourselves to other people. Moreover, the brands that we buy tell ourselves a story of who we are….I feel the best point made throughout the book is that there is no universal right way to create a brand. This is something that those new to the concepts of marketing must understand. Many times identities of brand simply emerge due to the culture that chooses to identify a a product or brand.” – Ryan O’Halloran “ Citing Keech’s seminal work on cognitive dissonance, (Walker) argues that onsumers are actually attempting to tell themselves a consistent story of who they are. Consumers don’t buy to keep up with the Joneses as previously been thought. Instead we buy things in an attempt to construct ourselves a consistent story about who we are.” – Dan Sweet

“ Essentially, Walker’s point is that we buy brands and product in order to tell a story about ourselves to other people. Moreover, the brands that we buy tell ourselves a story of who we are….I feel the best point made throughout the book is that there is no universal right way to create a brand. This is something that those new to the concepts of marketing must understand. Many times identities of brand simply emerge due to the culture that chooses to identify a a product or brand.” – Ryan O’Halloran

“ Citing Keech’s seminal work on cognitive dissonance, (Walker) argues that onsumers are actually attempting to tell themselves a consistent story of who they are. Consumers don’t buy to keep up with the Joneses as previously been thought. Instead we buy things in an attempt to construct ourselves a consistent story about who we are.” – Dan Sweet

Culting of Brands “ Atkin does an extraordinary job of showing the relationship between the building and management of cults and brand strategy. Although the two seem quite different, the tactics used by cult leaders can be effectively deployed by brand managers to build awareness and loyalty. Of course, these tactics can be used by public speakers, human resources professionals, and other occupations, but the connection that portrays the cult as a brand is what makes this perception unique. Members of a cult are fiercely loyal, and this is the characteristic that brand managers crave.” – Corey Breitfelder

“ Atkin does an extraordinary job of showing the relationship between the building and management of cults and brand strategy. Although the two seem quite different, the tactics used by cult leaders can be effectively deployed by brand managers to build awareness and loyalty. Of course, these tactics can be used by public speakers, human resources professionals, and other occupations, but the connection that portrays the cult as a brand is what makes this perception unique. Members of a cult are fiercely loyal, and this is the characteristic that brand managers crave.”

– Corey Breitfelder

How Brands Become Icons “ Holt argues that the three traditional theories of branding, mindshare, emotional, and viral do not go far enough in their strategy to create an iconic brand. … Holt’s model is one that should be reviewed by managers working to create a truly iconic brand. He takes a stab at trying to explain how one can go from a good brand to a great brand. He focuses on the importance of myths , or stories, that a brand creates. The importance of the myth makes sense in historical perspective as we have often used stories to express ourselves throughout history. He also interestingly discusses the populist markets which are key in accepting a myth. The populist market is similar to spotting an early trend, and identifying the group entwined in the trend. Often the brand may be articulating a feeling that the person I the group cannot articulate themselves. Holt also notes the vastness between a positioning statement and the creative executions that result from them.” – Bridget Battistone

“ Holt argues that the three traditional theories of branding, mindshare, emotional, and viral do not go far enough in their strategy to create an iconic brand. … Holt’s model is one that should be reviewed by managers working to create a truly iconic brand. He takes a stab at trying to explain how one can go from a good brand to a great brand. He focuses on the importance of myths , or stories, that a brand creates. The importance of the myth makes sense in historical perspective as we have often used stories to express ourselves throughout history. He also interestingly discusses the populist markets which are key in accepting a myth. The populist market is similar to spotting an early trend, and identifying the group entwined in the trend. Often the brand may be articulating a feeling that the person I the group cannot articulate themselves. Holt also notes the vastness between a positioning statement and the creative executions that result from them.” – Bridget Battistone

All Marketers Are Liars “ His assertion in the title of the book that ‘all marketers are liars’ is not really what he means. What Seth is trying to convey is that marketers must create a story around their products and services that the consumer can ‘buy into’ and convince themselves of the lie that the brand will truly make them fitter, smarter, better looking, more successful, etc. This may sound simple at the surface level, but there is a lot to it.” – Greg Lord “ Yes, consumers should be careful which story to believe but marketers also have the responsibility to tell authentic stories….The book is impactful because he consistently emphasized the same point over and over again – marketing is storytelling. He makes his point drawing from various stories by Starbucks, John Kerry, Blue Nile, etc. Whether it is coffee, a candidate, or diamonds, each brand shares the similarity of telling an authentic story that fits with consumers’ world view and something they can believe in.” – Anne Lin

“ His assertion in the title of the book that ‘all marketers are liars’ is not really what he means. What Seth is trying to convey is that marketers must create a story around their products and services that the consumer can ‘buy into’ and convince themselves of the lie that the brand will truly make them fitter, smarter, better looking, more successful, etc. This may sound simple at the surface level, but there is a lot to it.” – Greg Lord

“ Yes, consumers should be careful which story to believe but marketers also have the responsibility to tell authentic stories….The book is impactful because he consistently emphasized the same point over and over again – marketing is storytelling. He makes his point drawing from various stories by Starbucks, John Kerry, Blue Nile, etc. Whether it is coffee, a candidate, or diamonds, each brand shares the similarity of telling an authentic story that fits with consumers’ world view and something they can believe in.” – Anne Lin

Three Discussion Questions Is the story telling paradigm realistic or useful as a brand strategy framework? What is the obligation of brand marketers to be ‘authentic’? Do customers create the ‘lie’ or do marketers? All Marketers are Liars, Buying In Has the practice of brand marketing been taken too far when it is applied to churches, museums, cities and ideas? What is the downside of branding and what is the marketers’ ethical obligation when practicing? Obsessive Branding Disorder, Branded Nation Should brand strategies include a ‘cultural’ brief as well as a positioning? How should the importance of the culture be reflected in brand strategy? Cult Branding, How Brands Become Icons

Is the story telling paradigm realistic or useful as a brand strategy framework? What is the obligation of brand marketers to be ‘authentic’? Do customers create the ‘lie’ or do marketers?

All Marketers are Liars, Buying In

Has the practice of brand marketing been taken too far when it is applied to churches, museums, cities and ideas? What is the downside of branding and what is the marketers’ ethical obligation when practicing?

Obsessive Branding Disorder, Branded Nation

Should brand strategies include a ‘cultural’ brief as well as a positioning? How should the importance of the culture be reflected in brand strategy?

Cult Branding, How Brands Become Icons

For Wednesday: Complete online course evaluation Send electronic version of winning book reviews for ‘publication’ on the blog Check out Prophet’s web site www.prophet.com