Marissa Burkett H. Stern Brand Brief

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  • 1. Brand Audit Ashley M. Orndoff Marissa Burkett Nigar Kanji Alex Higgins Global Branding Study Abroad-Brazil Courses April 2009
  • 2. What Is H.Stern? • http://www.youtube.com/watch?v=q2w S_V2QE1I
  • 3. Foundations for Building Marketing Strategy Customer Knowledge • H. Stern is a family owned jeweler that first opened its doors in 1945. • The company focuses on pairing the finest quality jewels with the most innovative design. • When asked about H. Stern, customers might describe the company as “unique,” “high- status,” and “luxurious.”
  • 4. Consumer Reports Advertising Consumer Identification of Brand Brand with Brand Merchandising Recognition Brand Company, County, Ch Equity Awareness annel, Person, Place Sponsorship Brand Recall Brand Differential Customer Customer Knowledge Effect Based Loyalty Brand Word of Mouth BOND Equity Brand Image Service Brand Support Performance Perceptions Associations Value for money Value Proposition Value Value Value Brand Creation Satisfaction Commitment Value Customer Targeting Company Strong Favorable Unique I want H. Stern’s Competitors Elegance! Shareholder Value
  • 5. Independent Variables Variable Operational Applied by Definition H. Stern Any paid form of non personal H.Stern’s entity (magazine, Advertising presentation and promotion of spa, restaurant), Celebrities ideas, goods, or services by an (Grammy’s Oscars) unidentified sponsor. A term of many varied and not Merchandising generally adopted meanings. It can (1) relate to the promotional activities of manufacturers that bring about in-store displays, or (2) identify the product and product line decisions of retailers. Advertising that seeks to Endorsements: Celebrities Sponsorship establish a deeper association (Grammy’s, Oscars, Red Carpet and integration between an Events) advertiser and a publisher, often involving coordinated beyond-the-banner placements. Personal communication about Relying on the customers to Word of Mouth a product between target share their interpretation of buyers and neighbor, friends, HStern family members, and 5 associates
  • 6. Independent Variables Variable Operational Applied by Definition H. Stern The attributes and benefits that Associations characterize the most important aspects or •Points of Difference dimensions of a brand. They •Associations can serve as the basis of brand •Points of Parity Associations positioning in terms of how they create points of parity and points of difference. Based on prior attitudes, •Luxurious Perceptions beliefs, needs, stimulus •High-end factors, and situational •High social status determinants, individuals •Elegant perceive objects, events, or people in the world about them. Perception is the cognitive impression that is formed of "reality" which in turn influences the individual's actions and behavior toward that object. 6
  • 7. Independent Variables Variable Operational Applied by Definition H. Stern The act of designing the •Custom Made to Order Positioning company’s offer and image •Innovative Design so that it occupies a distinct and valued place in the target customer’s minds. A market covered strategy in Image Differentiation: Differentiation which a firm decides to luxurious, elegance target several market Service Differentiation: family segments and designs owned and operated separate offers for each. 7
  • 8. Mediating Variables Variable Operational Applied by Definition H. Stern A result of consumers’ •Family owned and operated Brand knowledge about the brand. •Good Customer Service •Distinct Knowledge The key to creating brand equity. •Custom Made to Order The perception of a brand in • Gain Social Approval Brand Image the minds of persons. The •Unique brand image is a mirror •Rare pieces reflection (though perhaps inaccurate) of the brand personality or product being. It is what people believe about a brand-their thoughts, feelings, expectations. 8
  • 9. Mediating Variables Variable Operational Applied by Definition H. Stern consumer knowing of a Brand recognition Consumers’ Brand brand's existence; at ability to e able to recognize the brand as one to which they have Awareness aggregate (brand) level it refers to the proportion of already been exposed to Brand recall. consumers who know of the Consumers’ ability to retrieve brand. two components of the brand from memory when brand awareness is brand given the product category ,the recognition and brand recall. needs fulfilled by the category, or a purchase or usage situation as a cue. Describes how well the •Product reliability Brand product or service meets •Efficiency customers’ more functional •Durability Performance needs. •Highest Quality The degree of a customer Customers willingness to invest Customer staying with a specific time, energy, money or other resources in the brand Loyalty vendor or brand. Repeat Purchases 9
  • 10. Dependent Variables Variable Operational Applied by Definition H. Stern marketing effects or outcomes Market Share Brand Equity that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name The differential effect that Customer brand knowledge has on consumer response to the Based Brand marketing of that brand Equity business buzz term, which Stock Price Shareholder implies that the ultimate Price/Earnings Multiple measure of a company's Market Capitalization Value success is to enrich shareholders. 10
  • 11. Position and Values Includes: • Market Segmentation • Market Targeting • Differentiation • Positioning
  • 12. Position and Values • Market Segmentation Divides the market into distinct groups of homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes According to Claritas PRIZM NE, H. Stern applies to the Segments of Urban Uptown, the Elite Suburbs to some extent, the Landed Gentry Segment groups. these represent the Upper and Higher Middle classes.
  • 13. Position and Values Differentiation The degree to which our corporate brand is seen as different from others. Points of Parity Points of Difference  High Quality  Handpicked Gems  Hand Crafted  Overall Buying Experience  Top Gems and Metals  Innovative Design  Popular Design  Nature Oriented  Stern Star Collection  Noble Gold
  • 14. Position and Values •Market Targeting The specific part of the population to whom a product offering is aimed and all marketing communication is tailored. Concentrated Marketing - H. Stern has diversified their target market opening the spa and restaurant. This add business (and leisure) lunch diners to their repertoire of already affluent shoppers. These people demand quality and service. By limiting the hours of the restaurant, H. Stern ensures that Eca is a destination experience, and not just chosen out of pure convenience. These market segments frequently overlap.
  • 15. Position and Values • Positioning The act of designing the company‟s offer and image so that it occupies a distinct and valued place in the target customer’s minds. When customers think “H. Stern” they think quality and opulence. Furthermore, words such as “shiny,” “bold,” and “unique” may bring H. Stern to mind.
  • 16. Branding Strategy Marketing Brand Secondary Programs Elements Association Brand Awareness Brand Image Relationships: What about You and Me? Resonance Response: Judgments Feelings What about You? Meaning: Performance Imagery What are You? Salience Identity: Who are You? Market Share
  • 17. Branding Strategy Branding Strategy has three components: • Development of Marketing Programs which consist of Product, Price, Distribution Channels and Communication • Carefully chosen Brand Elements • Secondary Associations made in relation to the brand.
  • 18. Developing Marketing Programs Price Communications Marketing Product (Promotion) Program Distribution Channels (Place)
  • 19. Developing Marketing Programs Product Strategy Discusses how value and quality perceptions are formed by consumers and includes both tangible and intangible benefits. • Functional benefits – H. Stern creates high value, high quality jewelry from the finest locally mined gems. • Process benefits – H. Stern has 160 stores in 12 countries and has infiltrated most luxury hotels. Furthermore, H. Stern jewelry is available in high end department stores and online. • Relationship benefits - H. Stern is an easy company to love, an inspiring rags to riches story. The dedication and enthusiasm of it‟s employees is inclusive and makes the consumer want to be part of the circle. Henceforth, people want the company to succeed. Also, the spa and Eça emotionally draw people into the entire experience.
  • 20. Developing Marketing Programs Pricing Strategy Dictates how consumers categorize the price of the brand and how firm or flexible the price is. Price can lead to consumer associations of perceived value and price categories. H. Stern is a high end luxury good. It‟s prices potentially can go into the millions of dollars making it only accessible to the wealthiest consumers. This knowledge adds to H. Stern‟s Customer Based Brand Equity by offering it‟s lucky ladies a feeling of high status and social approval.
  • 21. Developing Marketing Programs Channel Strategy The manner by which a product is sold or distributed, includes intermediaries on all levels of the chain. Concentrated in high-end department stores, luxury hotels, company owned flagship stores and the Tel Aviv airport. These stores employ top notch experienced salespeople which enhances H. Stern‟s customers‟ buying experience.
  • 22. Developing Marketing Programs Communication Strategy Marketing communication is the process of informing, reminding, and persuading the consumers about a particular product or service. (bnet.com) • Advertising • Celebrity Endorsers – H. Stern regularly offers their jewels to celebrities to wear to the Oscars, Grammy‟s and such. This gives them free advertising as every fashion magazine in the world covers what each starlet wore on the red carpet. • Marketing Programs • Word of Mouth • H. Stern magazine – This allows H. Stern to directly control what the consumer reads and learns about their company.
  • 23. Branding Strategy Marketing Brand Secondary Programs Elements Association Brand Awareness Brand Image Relationships: What about You and Me? Resonance Response: Judgments Feelings What about You? Meaning: Performance Imagery What are You? Salience Identity: Who are You? Market Share
  • 24. Choosing Brand Elements • Brand Identity The contribution of all brand elements to brand awareness and image • Name • Logos • Packaging
  • 25. Choosing Brand Elements • Names Companies named after their founders often provoke a feeling of intimacy. The name H. Stern represents dedication, commitment to quality and vision.
  • 26. Choosing Brand Elements • Logos The H. Stern logo has evolved over the years. The new logo, adopted in 2001 adds a new modernity to the company. Roberto Stern says “It‟s classic, but with a very sensual, assertive „S‟ that will be modern, even fifty years from now.”
  • 27. Choosing Brand Elements •Packaging H. Stern‟s main packaging is in their display. H. Stern takes great care to ensure that their stores mirror their jewelry in design and opulence. Furthermore, The H. Stern museum and gem tour allows potential customers to become part of the process, forming an emotional bond with the company which should lead to greater customer Loyalty.
  • 28. Leveraging Secondary Associations • Celebrity Endorsers A celebrity endorsement is great publicity for any firm but H. Stern manages to get it‟s jewels on some of the world‟s leading ladies year after year. This exposes them to an entirely different market (think upper middle class housewives and affluent teenagers) that may not have had exposure to the brand before.
  • 29. Branding Strategy Marketing Brand Secondary Programs Elements Association Brand Awareness Brand Image Relationships: What about You and Me? Resonance Response: Judgments Feelings What about You? Meaning: Performance Imagery What are You? Salience Identity: Who are You? Market Share
  • 30. Brand Awareness • Brand Awareness is the strength of the brand node or trace in memory, the consumer‟s ability to identify the brand under different conditions. H. Stern jewelry is becoming more recognizable in the world. Their attention to detail and the finest cuts and quality have them a favorite with gem aficionados while their celebrity endorsers have increased brand knowledge to the rest of the world.
  • 31. Brand Image • Marketing programs that link strong, favorable, and unique associations to the brand in memory create a positive brand image. Consumers can form brand associations through direct experience to information from commercials or nonpartisan sources. The Brands attempt to meet customers‟ psychological or social needs.
  • 32. Branding Strategy Marketing Brand Secondary Programs Elements Association Brand Awareness Brand Image Relationships: What about You and Me? Resonance Response: Judgments Feelings What about You? Meaning: Performance Imagery What are You? Salience Identity: Who are You? Market Share
  • 33. What about the Customer & H.Stern? ( Brand Resonance) What about the H.Stern What about the H.Stern Customer? Customer? (Consumer Judgments) (Consumer Feelings) What is H.Stern What is H.Stern about? about? (Brand Imagery) (Brand Performance) Who is H.Stern? (Brand Salience)
  • 34. Brand Building Blocks Definition H. Stern Salience Salience refers to the recall and recognition of The name H. Stern is known throughout the a brand as well as a consumers consideration world for it’s quality and innovative design. of the product Performance Performance addresses primary H. Stern jewelry is reliable and of the highest characteristics of a product as well as aspects quality jewels and craftsmanship. It inventive such as reliability, durability, style, design and without being trendy. price Imagery Imagery concerns a brand’s personality, H. Stern is seen as a progressive company usage, and history as well as the market’s loved by the very wealthy and celebrities. It is perceptions of it. family owned and operated and built from the ground up. Judgment Judgment addresses a brand’s quality, H. Stern is supreme quality and cutting edge. credibility, superiority and relevance. It is unique, modern and exclusive. Feelings Feelings refers to how a brand makes a H. Stern jewelry gives customers a feeling of consumer feel. self-respect and social approval. When bought for yourself, it is self-rewarding. Resonance Resonance concerns brand loyalty and H. Sterns uses it’s restaurant, home store and attachment plus active participation in a spa to create an entire H. Stern community. brand’s community. The inclusive environment creates customer loyalty.
  • 35. Who is H. Stern? Salience • H. Stern is synonymous in South America and around the world with high quality gems; and to a further extent, they •Is the customer are known for being a company that has succeeded through hard work, ingenuity, top quality and aware of H. Stern? performance. • Maintains awareness through its vertically integrated marketing system. – Hans Stern wanted to “make the country of Samba and Soccer also known as the country of colored gemstones.” •Does the customer • The customer can recall H.Stern through its: recall the H.Stern – Guided Tours that give step-by-step views of the design process Brand ? – Modernized Moniker that coveys the company‟s ideals • The brand is recognizable through the famous necks and wrists whose H.Stern jewels are seen adorning. – Partnerships with Respected Colleagues •Does the customer – “Appear predominately in the world‟s most respected recognize the fashion magazines.” H.Stern Brand?
  • 36. P What is H. Stern about? Performance H. Stern Brand Performance •What makes a customer want • H. Stern jewelry is made of the finest quality gems by the to purchase from H.Stern? highest qualified designers and gemologists. It is within the top four of international jewelers and hold‟s its value well. • “The Gemological Laboratory‟s standards are in accordance with GIA.” • Hans “Invested in quality, creating in 1949 an International Warranty Certificate to attest to the value of his jewels.” Imagery H. Stern Brand Image • H. Stern offers high-end luxury items promoted through •What type of associations do celebrities and endorsers. It is often seen as modern and customers form from wearing exotic. H.Stern? • H. Stern realizes that women buy jewelry in order to reward themselves or to gain social approval from their peers. By making unique, rare pieces, a woman‟s ultimate jewelry need is fulfilled: to have a piece that is entirely their own • “Buying a jewel becomes a treasured moment of pleasure.”
  • 37. What about the H. Stern customer? Judgments H. Stern Brand Judgments H. Stern Jewelry is thought of to be exclusive, unique What are the and of progressive design; Family owned and customers operated, H. Stern is seen as a company built on personal opinions hard work and innovation Seen as “daring and innovative, clean and and evaluations of contemporary-attracts men and women of every the H.Stern Brand? nationality and generation.”. H. Stern Brand Feelings Feelings H. Stern jewelry gives a feeling of achievement , How does the status and social approval. When a woman buys it for her self, it is self rewarding and H.Stern brand offers a feeling of accomplishment. affect customer’s When purchasing a piece, the customer can feel feelings about as though they are part of an elite society, themselves and owning a piece that was created for them their relationship alone.
  • 38. What about the customer and H. Stern? H. Stern Brand Resonance Resonance • The company‟s spa, restaurant and home store How well do create an entire H. Stern community. H.Stern’s • This exclusivity leads to greater customer customers feel a brand loyalty all around. connection with • Every H.Stern employee strives to build relationships with their customers, gaining the brand? customers-for-life. • The customer is never pressured to purchase in a given moment
  • 39. Sources of Brand Equity H. Stern creates Customer brand equity through the many H. Stern product options, special services and personalized care. • International Warranty Certificate – H. Stern offers a certificate in order to “attest to the value of his jewels.” (H. Stern website) • H. Stern Spa – H. Stern offers services in addition to their jewelry line that maintain the goal of providing customers with a luxurious experience. The H. Stern website sums it all up “To transform dreams into reality. This is H.Stern´s mission. And this principle is not restricted to the creation of products of the brand, but it‟s also extended to the services we aim to offer to our customers.” This conveys the kind of added value that customers look for in a brand. • Eça Restaurant - The Restaurant not only adds to the H. Stern jewelry buying experience, but it gives the company access to an entirely different market; the business world. H. Stern says that its restaurant is “transforming any business lunch into a delightful pleasure time.” • H. Stern Home – H. Stern Home rounds out the overall experience by bringing the incomparable quality and pioneering design of H. Stern gems into the kitchen. Like Tiffany &Co., a major competitor, H. Stern offers china settings, accessories and lighting. If very pleased with the jewelry, a customer may be more inclined to buy their furnishings at H. Stern, and vice versa.
  • 40. Sources of Brand Equity • H. Stern Magazine – The Magazine builds Customer Equity in many ways and has many different benefits: • Each magazine offers a behind-the-scenes view of the company and fashion which draws the consumer into the story as though they were somehow part of the business. • The magazines feature celebrities who have been wearing their jewelry, creating a desire for those influenced by celebrity culture to buy H. Stern‟s jewelry as well. This could make the socially conscience consumer feel that “if it is good enough for Angelina, it‟s good enough for me.” • Each magazine showcases the H. Stern collection, thereby exposing its wares to a larger geographical market.
  • 41. Fim!
  • 42. References • Philip Kotler, Principles of Marketing, 12 th edition, Prentice Hall, 2007. • http://Bnet.com • http://www.claritas.com/claritas/Default.jsp?c i=3&si=4&pn=prizmne_segments • Keller, Kevin. Strategic Brand Management, 3rd edition. Prentice-Hall, 2008. • H. Stern website: http://hstern.net • http://www.thetimes100.co.uk/case-study-- the-use-marketing-mix-product-launch--87-303- 1.php