Syrian marketing training August 2006


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  • Goes beyond poor quality continuity NEC - Parallel brand - Lines to 50 factories - Used name - Developed new products
  • Example: Coca-Cola Experience flat, warm coke but because you have substantial associations, with a cold, bubbly, refreshing drink that your “living memory” is likely to be of positive associations.
  • Simply the message, then simplify the source” Volvo = “Safety” Crest = “Less cavities”
  • Strategy is crafting plan to reach goals
  • Several companies or subsidiaries established to sell products to various market segments within an industry. Where a company owns various aspects of the supply chain
  • Solve problems / provide benefits Self image enhancement ___________ Provide sensory stimulation Provide cognitive stimulation
  • Syrian marketing training August 2006

    1. 1. HOW TO BE EFFECTIVE MARKETING PRODUCTS AND SERVICES Presented: Syrian-European Business Centre Damascus, Syria August 20-23, 2006 Presented by: Melvyn Ingleson Kathie Julian
    2. 2. Introduction: Melvyn Ingleson <ul><li>Melvyn is Managing Partner of MJI Business Solutions and founder of A former member of the Council of the Institute of Management Consultancy, he has served also as Scottish Chair and as Vice-President of Marketing and Communications. </li></ul><ul><li>He returned to independent consulting in 2003 after 4 years of developing the intangible assets service line for KPMG’s Global clients, based in London and latterly Amsterdam. A classically trained FMCG Brand Manager, he has spent 15 </li></ul><ul><li>years consulting across a large number of organisations and sectors after 10 years in industry developing brands for Cadbury, Associated British Foods, Imperial and KraftGeneralFoods. </li></ul><ul><li>He subsequently acted as an international adviser to the Dial Corporation, providing support on global competitor intelligence, market development, international acquisitions and joint ventures for over 10 years until its recent sale to Henkel. </li></ul><ul><li>He is a passionate believer in the untapped potential of all forms of intellectual assets, presenting and writing frequently on the topic. He is currently leading a major, twelve month Intellectual Asset Bootcamp for Scottish companies and public sector organisations, a first in Europe. </li></ul><ul><li>His interest in brands has now extended to the role of brand in both defining place and in contributing to economic development. He has established to encourage sharing of best practice in this emerging field. An active member of the Licensing Executives Society in UK and Ireland, he is now busy on behalf of MJI in Europe and DBS in the USA creating a select number of strategic alliances with leading law firms, patent and trademark attorneys, corporate financiers and other experts wishing to build awareness of intellectual asset management as a core management discipline. </li></ul><ul><li>Melvyn lives in Scotland in the United Kingdom with his wife Barbara and two children Ruth (16) and Jacob (9). </li></ul>
    3. 3. Brand Involvement: Melvyn Ingleson
    4. 4. Introduction: Kathie Julian <ul><li>Kathie Julian, co-founder and managing partner of Diamond Business Consulting™, based in Phoenix, Arizona USA </li></ul><ul><li>She has over 20 years of business management and consulting experience with proven experience in advertising, marketing research, consumer brand development and management, manufacturing, business development, strategic planning, financial analysis, and retail store development and operations management. </li></ul><ul><li>She spent ten years with the Dial Corporation (now a Henkel company) in Scottsdale, Arizona, as the Vice President of marketing services providing in-house consumer and syndicated research, package design, point of sale materials, advertising, consumer and trade promotion, and strategic analyses numerous multi-national and global brands. </li></ul><ul><li>She also spent numerous years as the key new product/market development director in the personal care category, developing new research methodologies and new product development processes to bring new product/brand ideas to market more quickly and cost effectively with the biggest financial impact available to the corporate portfolio. </li></ul><ul><li>After leaving Dial, Kathie owned and managed two major furniture manufacturing and retail businesses and was a senior consultant for Newport Furnishings®, a Phoenix based, national chain of boutique furniture stores that sell quality home furnishings at discount prices from a low overhead warehouse showroom environment. </li></ul><ul><li>Kathie is often a featured speaker on the topics of marketing and brand development, and retail operations optimization. She has written several articles on the role of Marketing Research within consumer products companies and has been the featured cover story for many Arizona publications. </li></ul><ul><li>Kathie is originally from Southern California and a graduate of the University of Southern California with a BS in Marketing and Business Administration. She lived in Glasgow, Scotland for 6 years where she received an MBA in Strategic management/International Business from the University of Strathclyde. </li></ul><ul><li>Kathie and her husband Vance have two children Brendan (12) and Brittany (9). They live in Paradise Valley, Arizona. Her hobbies include several volunteer associations with Scottsdale Desert Stages Theatre where she is the volunteer advertising and program director and The Arizona Kidney Foundation where she recently served as the Chairwoman of their annual Gift of Life Celebration and Gala entitled “Choose to dance” which was her way of giving back after having the privilege to donate a kidney to her mother in 2005. </li></ul>
    5. 5. Brand Involvement: Kathie Julian
    6. 6. Agenda for Training Session <ul><li>Introductions to course leaders </li></ul><ul><li>International perspective </li></ul><ul><ul><li>Branding in the 2000’s – New Forces at Work </li></ul></ul><ul><ul><li>Branding a Nation – Why Branding a Nation is key in this economy and political environment </li></ul></ul><ul><ul><li>Branding in China – strategies and responses </li></ul></ul><ul><li>Practical applications </li></ul><ul><ul><li>Creating a brand – What is a Brand? Why it is important </li></ul></ul><ul><ul><li>Branding begins at home </li></ul></ul><ul><ul><li>Brand Identity – The Who? What? Why? Of the brand </li></ul></ul><ul><ul><li>Keys to developing winning brands </li></ul></ul>
    7. 7. Agenda for Training Session (continued) <ul><li>Marketing Management </li></ul><ul><ul><li>Marketing strategies </li></ul></ul><ul><ul><li>Competitive analysis </li></ul></ul><ul><ul><li>Marketing Mix (5 Ps) </li></ul></ul><ul><ul><ul><li>Positioning </li></ul></ul></ul><ul><ul><ul><li>Product / Packaging </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul><ul><ul><ul><li>Promotion </li></ul></ul></ul><ul><ul><ul><li>Place (distribution) </li></ul></ul></ul>
    8. 8. Agenda for Training Session (continued) <ul><li>Industry or Market Research – The foundation </li></ul><ul><li>Consumer Analysis or Market Research – understanding the wants and needs of your customer </li></ul><ul><ul><li>Research methodologies </li></ul></ul><ul><ul><li>Research techniques </li></ul></ul><ul><li>Innovation and New Product Development – Keeping the Pipeline Full </li></ul>
    9. 9. Agenda for Training Session (continued) <ul><li>Case Studies </li></ul><ul><ul><li>Starbucks </li></ul></ul><ul><ul><li>Cold Stone Creamery </li></ul></ul><ul><ul><li>SoBe Beverages </li></ul></ul><ul><li>Discussion and Closing </li></ul>
    10. 10. Branding in the 2000s New Forces at Work
    11. 11. Branding in the 2000s: New Forces at Work <ul><li>Globalization: Increase profile of national branding and country-of-origin marketing </li></ul><ul><ul><li>BBC’s “The Money Programme” examined the branding of Britain </li></ul></ul><ul><ul><li>Means to differentiate products that are becoming more homogenous and are aware of the relationship between country, brand and product image on purchasing behavior. </li></ul></ul><ul><ul><li>Sweden has two elements that make her a strong nation: </li></ul></ul>
    12. 12. Branding in the 2000s: New Forces at Work (continued) <ul><ul><li>Outward vision for international companies that encourage listening and gaining knowledge from customers and </li></ul></ul><ul><ul><li>Positive country-of-origin affect that transcends categories. (Examples: Absolut Vodka, IKEA, Saab, Volvo) </li></ul></ul><ul><li>Swedish Business Principles </li></ul><ul><ul><li>Swedish management & marketing practices will likely become even more prevalent. </li></ul></ul><ul><ul><li>1980’s and 1990’s relationship marketing ideas from the Nordic School made their way into business journals and well accepted brand equity concept emerged from David Aaker. </li></ul></ul>
    13. 13. Branding in the 2000s: New Forces at Work (continued) <ul><ul><li>Swedish business principles, continued </li></ul></ul><ul><ul><ul><li>Database advances on the internet, and virtual work organizations, have developed one-on-one relationships with customers </li></ul></ul></ul><ul><li>People’s Republic of China joins the World Trade Organization </li></ul><ul><ul><li>Could speed free-market reforms </li></ul></ul><ul><ul><li>With this consumerism, can we also expect improved/changed press freedoms, internet censoring, reduced corruption, or the development of proper human rights? </li></ul></ul>
    14. 14. Branding in the 2000s: New Forces at Work (continued) <ul><li>People’s Republic of China, continued </li></ul><ul><ul><li>Chinese culture is permeating western society more </li></ul></ul><ul><ul><ul><li>Largely since the 1997 handover of Hong Kong to China </li></ul></ul></ul><ul><ul><ul><li>Companies trying to access the 200 million Chinese consumers </li></ul></ul></ul><ul><li>Northern European companies strength in the 2000s </li></ul><ul><ul><li>Scandinavia, (including Finland, Norway, Denmark and of course Sweden) are considered the most globally competitive countries in Europe </li></ul></ul><ul><ul><li>Sweden has succeeded because companies have a start-up management style and an international perspective </li></ul></ul>
    15. 15. Branding in the 2000s: New Forces at Work (continued) <ul><li>Cross media influences will continue to affect branding </li></ul><ul><ul><li>Already seen the web aesthetic influence print and television design (and vice versa) </li></ul></ul><ul><ul><li>Consumer are likely to continue web research and review of products/pricing prior to deciding where to shop and whether to buy a product. </li></ul></ul><ul><ul><li>Proliferation of media and segmentation of markets continue to speed up and organizations need to remain poised to capitalize on new opportunities </li></ul></ul>
    16. 16. Branding in the 2000s: New Forces at Work (continued) <ul><li>Key change to identity and branding is inclusiveness </li></ul><ul><ul><li>Bringing in new cultural influences </li></ul></ul><ul><ul><li>Adopting more of the behavior of the Nordic School </li></ul></ul><ul><ul><li>Increased brand differentiation through “attitude” </li></ul></ul><ul><ul><ul><li>Retail staff behavior </li></ul></ul></ul><ul><ul><li>Moral globalist – Need honor not marketing tricks or gimmicks </li></ul></ul>
    17. 17. Branding in the 2000s: New Forces at Work (continued) <ul><li>Collaborative world atmosphere – </li></ul><ul><li>Post September 11, 2001 </li></ul><ul><ul><li>Based around listening, not dictating </li></ul></ul><ul><ul><li>New awareness of overseas cultures </li></ul></ul><ul><ul><li>Companies can work for global advancement rather than just corporate finances. A more caring world in the future??? </li></ul></ul>
    18. 18. <ul><li>Branding a Nation </li></ul><ul><li>Why Branding a Nation is Key in this Economy and Political Environment </li></ul>
    19. 19. Branding A Nation Why Branding a Nation is Key in this Economy and Political Environment <ul><li>Key to developing tourism, inward investment, receiving aid, membership of the supranational groups, and to find buyers of domestic products and services </li></ul><ul><li>Countries are working hard to develop and communicate it’s brand image, culture, exports, acts of policy and contribution to the global economy </li></ul><ul><li>Historically, countries were known by their major international companies and now they are becoming known for their country of origin. </li></ul>
    20. 20. Branding A Nation Why Branding a Nation is Key in this Economy and Political Environment (continued) <ul><li>Country as brand is not a new concept but increasing in popularity </li></ul><ul><ul><li>Some recent international examples include </li></ul></ul><ul><ul><ul><li>“Malaysia, Truly Asia” </li></ul></ul></ul><ul><ul><ul><li>“Amazing Thailand” where the imagery brings out the feeling of transforming everyday individuals into amazing resort-filled lives </li></ul></ul></ul><ul><ul><ul><li>Other countries aggressive in the approach are: </li></ul></ul></ul><ul><ul><ul><ul><li>Great Britain, Australia and New Zealand, South Korea, Hong Kong, Japan and the USA (Las Vegas, San Antonio, Scottsdale, etc.) </li></ul></ul></ul></ul>
    21. 21. Branding A Nation Why Branding a Nation is Key in this Economy and Political Environment (continued) <ul><li>Nation Marketing </li></ul><ul><ul><li>Originally reserved for rich countries who had created wealth through brand marketing </li></ul></ul><ul><ul><li>Now moving to poorer or less developed countries helping them graduate from supplier of low-margins unbranded commodities to brand owners and branded destinations </li></ul></ul><ul><ul><li>Thus, “country as brand” marketing has the potential to make a major and direct impact on the fair distribution of wealth </li></ul></ul>
    22. 22. Branding A Nation Why Branding a Nation is Key in this Economy and Political Environment (continued) <ul><li>Nation marketing, continued </li></ul><ul><ul><li>Culture can be a metaphor for personality, sharing the inner qualities of a nation through its cultural enterprise </li></ul></ul><ul><ul><li>Cultural aspect of a nation is like geography, it is irreplaceable and cannot be copied. . .uniquely linked to the country itself </li></ul></ul><ul><ul><li>Shows the spiritual and intellectual qualities of the country’s people and institutions </li></ul></ul><ul><ul><li>All of this provides differentiation and USP (unique selling proposition) which is the key driver of a brand and brand equity </li></ul></ul>
    23. 23. Branding A Nation Why Branding a Nation is Key in this Economy and Political Environment (continued) <ul><ul><li>National brands have increased responsibility to transmit national culture. </li></ul></ul><ul><ul><ul><li>Overcome national stereotypes (USA – Youth brands, Japan – technology brands, heritage brands from Britain, engineering brands from Germany, luxury goods from Italy, etc.) </li></ul></ul></ul><ul><ul><ul><li>Offer something other than qualities of power, wealth and sophistication </li></ul></ul></ul><ul><ul><ul><li>Culture plays an important role in the process of enriching a country’ brand image. </li></ul></ul></ul>
    24. 24. -7% 12,256 Computer Hardware US Dell 25 46% 12,376 Internet Services US Google 24 2% 12,507 Beverages Switzerland Nescafe 23 2% 12,690 Beverages US Pepsi 22 8% 13,001 Financial Services US Merrill Lynch 21 8% 16,169 Consumer Electronics South Korea Samsung 20 8% 17,049 Automotive Japan Honda 19 6% 17,532 Computer Services US Cisco 18 10% 17,606 Luxury Goods France Louis Vuitton 17 12% 19,579 Personal Care US Gillette 16 15% 19,617 Automotive Germany BMW 15 6% 19,641 Financial Services US American Express 14 8% 20,458 Computer Hardware US Hewlett-Packard 13 1% 21,350 Tobacco US Marlboro 12 7% 21,458 Financial Services US Citi 11 9% 21,795 Automotive Germany Mercedes 10 6% 27,501 Restaurants US McDonald's 9 5% 27,848 Media/ Entertainment US Disney 8 12% 27,941 Automotive Japan Toyota 7 14% 30,131 Telecom Equipment Finland Nokia 6 -9% 32,319 Computer Hardware US Intel 5 4% 48,907 Diversified US GE 4 5% 56,201 Computer Services US IBM 3 -5% 56,201 Computer Software US Microsoft 2 -1% 67,000 Beverages US Coca-Cola 1 Change in Brand Value 2006 Brand Value ($M) Sector Country of Origin Brand Rank Best Global Brands 2006
    25. 25. <ul><li>BRANDING IN CHINA Strategies & Responses </li></ul>
    26. 26. Branding in China Strategies & Responses <ul><li>Aggressive and optimistic two-pronged strategy </li></ul><ul><ul><li>Organically grow brands that are imbued with new meanings reflecting positive changes in China </li></ul></ul><ul><ul><li>Acquiring talent, credibility and equity of established brands </li></ul></ul><ul><ul><li>->Led to dramatic transition from a company seen as an original equipment manufacturer to one that creates and manages leading global brands </li></ul></ul>
    27. 27. Branding in China Strategies & Responses (continued) <ul><li>Early commercial perceptions of China were not positive </li></ul><ul><ul><li>Issues related to “trust” and “lack of quality” </li></ul></ul><ul><ul><li>Need to overcome and convince customers otherwise </li></ul></ul><ul><li>Key is to determine relevance of China and Chinese brands globally </li></ul><ul><ul><li>Start by leveraging dominance in home market </li></ul></ul><ul><ul><li>Chinese brands are competing extremely well in their increasingly competitive home market </li></ul></ul>
    28. 28. Branding in China Strategies & Responses (continued) <ul><ul><li>Benefit from their ingrained position as low-cost producers </li></ul></ul><ul><ul><li>Will win based on volume production and efficient business models </li></ul></ul><ul><li>China has yet to establish a truly powerful global brand </li></ul><ul><ul><li>Need to make improvements in adequate protection for intellectual property </li></ul></ul><ul><ul><li>Now focused on profit not just factory output. </li></ul></ul><ul><ul><li>Seeking ways to innovate in business and branding to drive enhanced bottom line performance </li></ul></ul>
    29. 29. Branding in China Strategies & Responses (continued) <ul><ul><ul><li>Need brand sophistication (coming) and given anticipated dominance in certain industries will have global brands in the near future </li></ul></ul></ul><ul><li>What are the next steps for the Chinese brands going global </li></ul><ul><ul><li>Low-cost leverage (leverage ability to produce goods and services at much lower costs and higher volume) </li></ul></ul><ul><ul><li>Combine with enhanced perceptions of quality </li></ul></ul><ul><li>Truly innovative </li></ul><ul><ul><li>Chinese government and enterprise helping to defer counterfeiting (loss of profit) </li></ul></ul>
    30. 30. Branding in China Strategies & Responses (continued) <ul><ul><li>China has the capability to truly innovate products and services that have global relevance at an amazing rate </li></ul></ul><ul><ul><ul><li>Now the 3 rd largest investor in R&D after Japan and USA </li></ul></ul></ul><ul><ul><li>Chinese companies originally acquiring companies for production capacity now not the case </li></ul></ul><ul><ul><ul><li>Recruit new product talent and processes </li></ul></ul></ul><ul><ul><li>Acquiring companies for access to expansive sales networks </li></ul></ul><ul><ul><ul><li>Government war chests have money to invest in companies </li></ul></ul></ul><ul><ul><li>China increased investment in the developing world (Asia, Latin America, Africa, Middle East) is deliberate strategy </li></ul></ul><ul><ul><ul><li>Want to obtain raw material, resources, achieve market entry and gain established skills / experience </li></ul></ul></ul>
    31. 31. Branding in China Strategies & Responses (continued) <ul><li>New industries </li></ul><ul><ul><li>Goal to develop a high-end, international luxury automobile brand through Shanghai Automotive Industry Corporation (SAIC) </li></ul></ul><ul><ul><ul><li>Luxury car based on the Rover 75 selling 200,000 cars by 2010 </li></ul></ul></ul><ul><ul><ul><li>Investing $1 billion over 4 years on project </li></ul></ul></ul>
    32. 32. Branding in China Strategies & Responses (continued) <ul><li>Niche Markets </li></ul><ul><ul><li>Strategically target sectors that have been neglected or over looked by others </li></ul></ul><ul><ul><li>Invest in innovations and quality and take over larger percentage of market share </li></ul></ul><ul><ul><li>Examples </li></ul></ul><ul><ul><ul><li>St. Allen’s – Nail clippers 10% global market </li></ul></ul></ul><ul><ul><ul><li>Yuchen Playing Cards 12% </li></ul></ul></ul><ul><ul><ul><li>China Int’l Marine Containers 50% shipping container market </li></ul></ul></ul><ul><ul><ul><li>Guangdong Galanz Enterprises 40% microwave oven market </li></ul></ul></ul>
    33. 33. Branding in China Strategies & Responses (continued) <ul><li>Redefine “Made in China” label </li></ul><ul><ul><li>Long synonymous with “cheap.” Need to create a value proposition of quality / price </li></ul></ul><ul><li>Learn from Samsung </li></ul><ul><ul><li>Focus on design: “Status” was the #1 reason for choosing a brand and now it is “good design” </li></ul></ul><ul><ul><li>Chinese customers are demanding functionality, ergonomics, appearance, status, among other benefits </li></ul></ul>
    34. 34. Branding in China Strategies & Responses (continued) <ul><li>Be Chinese . . . Globally </li></ul><ul><ul><li>Build factories in other markets while also making acquisitions </li></ul></ul><ul><ul><li>Dichotomy of Chinese expansion </li></ul></ul><ul><ul><ul><li>Down playing roots to distance themselves from “cheap” reputation </li></ul></ul></ul><ul><ul><ul><li>Looking to Chinese character to differentiate brands in a modern day China </li></ul></ul></ul>
    35. 35. Branding in China Strategies & Responses (continued) <ul><li>Learn from China </li></ul><ul><ul><li>Two best ways to do this are to </li></ul></ul><ul><ul><ul><li>(1) Commercially enter the country or </li></ul></ul></ul><ul><ul><ul><li>(2) Buy a Chinese company </li></ul></ul></ul><ul><ul><li>Need to create long standing, mutually beneficial business relationships </li></ul></ul><ul><ul><li>Learn the culture, history, people and sensitivities </li></ul></ul><ul><ul><li>Must pursue an active interest in China to understand the competitive threat and changing global marketplace </li></ul></ul><ul><ul><ul><ul><ul><li>Jeff Swyshun, Global Director, Interbrand </li></ul></ul></ul></ul></ul>
    36. 36. <ul><li>CREATING A BRAND </li></ul>
    37. 37. Creating a Brand <ul><li>What is a brand? Why is it important? </li></ul><ul><li>Common misperception that branding just happens or is a project with a start & finish </li></ul><ul><li>A brand is the greatest asset your company will never see. </li></ul><ul><li>“ A brand is . . . the collective perception of a product or company based on experience. The aggregate of (customer) experiences, accumulated across all audiences over time, creates this “collective perception.” James R. Gregory </li></ul>
    38. 38. Branding Begins at Home <ul><li>“ Branding is not based on what goes on with the brand but rather what goes in . . .should be an investigation of the brand’s very substance – the facets of brand identity.” Kapferer </li></ul><ul><li>Forces a business to think about important internal and strategic issues: </li></ul><ul><ul><ul><li>Vision </li></ul></ul></ul><ul><ul><ul><li>Immediate and long-term goal </li></ul></ul></ul><ul><ul><ul><li>Corporate values </li></ul></ul></ul>
    39. 39. Brand Identity: The who? What? Why? of the Brand <ul><li>Articulate to your audience what makes you unique, different, special. Answer several questions: </li></ul><ul><li>Key message </li></ul><ul><ul><li>Two or three points that best support the products uniqueness, difference and special elements </li></ul></ul><ul><li>Positioning </li></ul><ul><ul><li>The one essential idea you want to “own” in the minds of your audience. </li></ul></ul><ul><ul><ul><ul><ul><li>continued </li></ul></ul></ul></ul></ul>
    40. 40. Brand Identity: The who? What? Why? of the Brand (continued) <ul><li>Brand promise </li></ul><ul><ul><li>What emotional and practical benefits the customer is assured of receiving </li></ul></ul><ul><ul><li>Illustrated by a cause and effect sequence that begins with key messages and ends with the unique advantages the audience will enjoy. </li></ul></ul>
    41. 41. Brand Identity: The who? What? Why? of the Brand (continued) <ul><li>Personality </li></ul><ul><ul><li>Human qualities and/or persona that best reflects the character of a business </li></ul></ul><ul><ul><li>If our product was a person what would he be like? </li></ul></ul><ul><ul><li>Want to increase likelihood that customer will relate to brand and want to be a part of it </li></ul></ul><ul><li>Competitive differentiation </li></ul><ul><ul><li>Unique benefits that set your product / business apart from the competition. Why the customer should choose you. </li></ul></ul>
    42. 42. Brand Identity: The who? What? Why? of the Brand (continued) <ul><li>Visible symbols of a brand: </li></ul><ul><ul><li>These are the outward expressions of all a company brand is and hopes to be </li></ul></ul><ul><ul><ul><ul><li>Logos Icons Symbols </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Name Tag Line </li></ul></ul></ul></ul><ul><li>Name </li></ul><ul><ul><li>“ The most important branding decision you will ever make is what to name your product or service…All other factors being equal, the brand with the better name will come out on top.” Ries and Ries </li></ul></ul>
    43. 43. The Brand Pyramid Essence Values Personality Emotional benefits Functional benefits
    44. 44. Keys to Developing Winning Brands <ul><li>Strong, increasing brand equity is vital </li></ul><ul><li>Secure top management support </li></ul><ul><li>Profound customer knowledge is essential </li></ul><ul><li>Product and service must exceed customer expectations </li></ul><ul><li>Building strong awareness of the brand </li></ul><ul><ul><li>Awareness -> trial -> repeat use -> loyalty </li></ul></ul><ul><li>Relevant differentiation </li></ul><ul><li>Evoke emotions and create sensory experience </li></ul><ul><li>Exhibit admirable human qualities </li></ul>
    45. 45. Keys to Developing Winning Brands (continued) <ul><li>Stand for something </li></ul><ul><li>Constant product and service innovation </li></ul><ul><li>Corporate culture must reinforce brand positioning </li></ul><ul><li>Internal brand building </li></ul><ul><li>Front line employees are a key to a brand’s success </li></ul><ul><li>Co-create your brand with your customers. </li></ul><ul><ul><ul><ul><li>Brad Van Auke </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Director, Brand Management </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Hallmark </li></ul></ul></ul></ul>
    46. 46. <ul><li>MARKETING </li></ul><ul><li>MANAGEMENT </li></ul>
    47. 47. Marketing Management <ul><li>The master plan to launch successful brands, products, services </li></ul><ul><ul><ul><li>The analysis, planning, implementation, and control of programs designed to create, build and maintain brand equity and value with target consumers. </li></ul></ul></ul><ul><li>Marketing management involves: </li></ul><ul><li>Understanding the economic structure of your industry </li></ul><ul><ul><ul><li>Category sales value (financial) </li></ul></ul></ul><ul><ul><ul><li>Volume (# of cases) </li></ul></ul></ul>
    48. 48. Marketing Management (continued) <ul><li>Identify segments within your market (market segmentation) </li></ul><ul><ul><li>Breaks the market into smaller unit enabling a focus of marketing / branding / advertising efforts </li></ul></ul><ul><ul><ul><li>Demographic: Age, sex, marital status, ethnicity, religion, etc. </li></ul></ul></ul><ul><ul><ul><li>Psychographic: Values, attitudes, lifestyles </li></ul></ul></ul><ul><ul><ul><li>Social economic </li></ul></ul></ul><ul><ul><ul><li>Motivations & uses </li></ul></ul></ul><ul><ul><ul><ul><li>Mood control, self esteem enhancement, group affiliations, etc. </li></ul></ul></ul></ul><ul><li>Identify the marketing strategy that best fits your company </li></ul>
    49. 49. Marketing Management Marketing Strategies <ul><li>Every marketing strategy is unique but begins with a core generic strategy. </li></ul><ul><li>Market Dominance </li></ul><ul><ul><li>Firms are classified based on their market share or dominance within an industry </li></ul></ul><ul><ul><li>Five types of market dominance strategies </li></ul></ul><ul><ul><ul><li>Market leader </li></ul></ul></ul><ul><ul><ul><li>Follower </li></ul></ul></ul><ul><ul><ul><li>Challenger </li></ul></ul></ul><ul><ul><ul><li>Niche player </li></ul></ul></ul><ul><ul><ul><li>Producer </li></ul></ul></ul>
    50. 50. Marketing Management Marketing Strategies (continued) <ul><li>Porter generic strategies </li></ul><ul><ul><li>Assessed strategy based on two dimensions: </li></ul></ul><ul><ul><ul><li>Strategic Scope deals with the breadth of market penetration (demand side dimension) </li></ul></ul></ul><ul><ul><ul><li>Strategic Strength covers the degree to which a company has a sustainable competitive advantage (supply side dimensions), core competencies, differentiations & ethnicity </li></ul></ul></ul><ul><ul><li>Three strategies of significance </li></ul></ul><ul><ul><ul><li>Cost leadership </li></ul></ul></ul><ul><ul><ul><ul><li>Emphasizes efficiency by producing high volumes of product take advantage of economics of scale & experience curve effects </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Need considerable market share or </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Preferential access to raw markets, labor and other cost related items </li></ul></ul></ul></ul>
    51. 51. Marketing Management Marketing Strategies (continued) <ul><ul><li>Product differentiation </li></ul></ul><ul><ul><ul><li>Creating a product that is unique </li></ul></ul></ul><ul><ul><ul><li>Customers tend to be more loyal because they can’t get the product benefits elsewhere </li></ul></ul></ul><ul><ul><ul><li>Price elasticity is reduced and customers willing to pay premium </li></ul></ul></ul><ul><ul><li>Market segmentation </li></ul></ul><ul><ul><ul><li>Concentrates of a few target markets (also called “focus” or “niche” strategy </li></ul></ul></ul>
    52. 52. Marketing Management Porter’s Generic Strategy (continued) Focus Strategy (Differentiation) Focus Strategy (Low Cost) Narrow (Market Segment) Differentiation Strategy Cost leadership Strategy Broad (Industry Wide) Product Uniqueness Low Cost Advantage Target Scope Porter's Generic Strategies
    53. 53. Marketing Management Porter Generic Strategy <ul><li>Successful implementation benefits from: </li></ul>Attract highly skilled, creative people Stress improvement and innovation Be able to communicate the importance of the differentiating product characteristics Incentives based largely on subjective measures Incentives based on quantitative targets Strong marketing skills Tight cost control Good cooperation with distribution channels Close supervision of labour Ability to execute Guerilla Marketing Strong creativity skills Sustained access to inexpensive capital Strong marketing / advertising capabilities Strong product engineering skills Products designed for ease of manufacture Strong target implementation understanding Strong research and development skills Process engineering skills Market Segmentation Differentiation Cost Leadership
    54. 54. Marketing Management (continued) <ul><li>Innovation strategies </li></ul><ul><ul><li>The rate of new product development and innovation within the company business model </li></ul></ul><ul><ul><li>Cutting edge technology (Strong R&D Focus) </li></ul></ul><ul><ul><li>Three types: Pioneers, close followers, late followers </li></ul></ul><ul><li>Growth strategies covers methods / approaches for the firm to grow </li></ul><ul><ul><li>Horizontal integration </li></ul></ul><ul><ul><li>Vertical integration </li></ul></ul><ul><ul><li>Diversification </li></ul></ul><ul><ul><li>Intensification </li></ul></ul><ul><li>Aggressiveness strategies –asks whether a firm should grow or not </li></ul><ul><ul><li>Building </li></ul></ul><ul><ul><li>Holding </li></ul></ul><ul><ul><li>Harvesting (Profit taking) </li></ul></ul>
    55. 55. Marketing Management (continued) <ul><li>Identify and target markets </li></ul><ul><li>Conduct marketing research to develop profiles on your core customers </li></ul><ul><li>Understand your competitors and their products (competitive analysis) </li></ul><ul><ul><li>Competitor array (evaluate competitors on weighted key success factors (KSF) </li></ul></ul><ul><ul><li>See chart, next page </li></ul></ul>
    56. 56. Marketing Management Competitive Analysis Competitive Array 3.7 18 4.9 20 1.0 TOTALS .4 4 .7 7 .1 4. Product innovation .6 3 .6 3 .2 3. Economics of scale 1.5 5 1.2 4 .3 2. Customer focus 1.2 3 2.4 6 .4 1. Extensive distribution Competitor #2 weighted Competitor #2 rating Competitor #1 weighted Competitor #1 rating Weighting Key Industry Success Factors
    57. 57. Marketing Management Competitive Analysis <ul><ul><li>Competitive profiling </li></ul></ul><ul><ul><ul><li>Background </li></ul></ul></ul><ul><ul><ul><li>Financial </li></ul></ul></ul><ul><ul><ul><li>Products </li></ul></ul></ul><ul><ul><ul><li>Marketing </li></ul></ul></ul><ul><ul><ul><li>Facilities </li></ul></ul></ul><ul><ul><ul><li>Personnel </li></ul></ul></ul><ul><ul><ul><li>Corporate & marketing strategies </li></ul></ul></ul><ul><ul><li>Porter’s Five Forces Analysis </li></ul></ul>
    58. 58. Marketing Management Porter’s 5 Forces Competitive Analysis A model for industry analysis
    59. 59. Rivalry -Corporate stakes Buyers' incentives   -Diversity of rivals Substitutes available   -Brand identity Buyer concentration vs. industry   -Switching costs Product differentiation   -Product differences Threat of backward integration   -Intermittent overcapacity Price sensitivity   -Industry growth Brand identity   -Fixed costs/Value added Buyer information   -Industry concentration Buyer volume   -Exit barriers Bargaining leverage   DEGREE OF RIVALRY BUYER POWER     Proprietary products   Expected retaliation   Access to distribution   Switching costs   Brand identity   Capital requirements trade-off of substitutes Economies of scale -Price-performance RIVALRY Government policy substitute Access to inputs -Buyer inclination to Proprietary learning curve -Switching costs Absolute cost advantages THREAT OF SUBSTITUTES BARRIERS TO ENTRY   Cost relative to total purchases in industry     Threat of forward integration     Presence of substitute inputs     Switching costs of firms in the industry     Impact of inputs on cost or differentiation     Differentiation of inputs     Importance of volume to supplier     Supplier concentration     SUPPLIER POWER   Diagram of Porter's Five Forces
    60. 60. Marketing Management Competitive Analysis Rivals cannot meet differentiation-focused customer needs Brand loyalty to keep customers from rivals Better able to compete on price Rivalry Specialized products and core competency protect against substitutes Customer's become attached to differentiating attributes, reducing threat of substitutes Can use low price to defend against substitutes Threat of Substitutes Suppliers have power because of low volumes, but a differentiation-focused firm is better able to pass on supplier price increases Better able to pass on supplier price increases to customers Better insulated from powerful suppliers Supplier Power Large buyers have less power to negotiate because of few alternatives Large buyers have less power to negotiate because of few close alternatives Ability to offer lower price to powerful buyers Buyer Power Focusing develops core competencies that can act as barrier to entry Customer loyalty can discourage potential entrants Ability to cut price in retaliation deters potential entrants Entry Barriers Focus Differentiation Cost Leadership Generic Strategies Industry Force Generic Strategies and Industry Forces
    61. 61. Marketing Management (continued) <ul><li>Develop new products </li></ul><ul><li>Establish process to screen external opportunities & threats </li></ul><ul><li>Understand your company’s strengths and weaknesses </li></ul><ul><li>Audit your customers experience with the brand continuously </li></ul><ul><li>Develop marketing strategies for each of your products using the marketing mix variables or the 5 Ps: Positioning, Product, Pricing, Promotion, and Place (distribution) </li></ul>
    62. 62. <ul><li>MARKETING MIX </li></ul>
    63. 63. Marketing Mix <ul><li>Positioning </li></ul><ul><ul><li>Is a technique by which markets try to create an image or identity for a product, brand or organization </li></ul></ul><ul><li>Product Positioning </li></ul><ul><ul><li>Successful strategies are rooted in a product’s sustainable advantage. Most common basis for product positioning are: </li></ul></ul><ul><ul><ul><li>Specific product features </li></ul></ul></ul><ul><ul><ul><li>Specific benefits, needs or solutions </li></ul></ul></ul><ul><ul><ul><li>Specific use categories </li></ul></ul></ul>
    64. 64. Marketing Mix (continued) <ul><ul><ul><li>Specific use occasions </li></ul></ul></ul><ul><ul><ul><li>Compared to another product </li></ul></ul></ul><ul><ul><ul><li>Product class dissociation </li></ul></ul></ul><ul><li>Product positions process generally involves </li></ul><ul><ul><li>Identifying competing products </li></ul></ul><ul><ul><li>Identify the attributes that define the product space </li></ul></ul><ul><ul><li>Collect information from customers on their perceptions of each product on the relevant attributes </li></ul></ul><ul><ul><li>Determine each products share of mind </li></ul></ul>
    65. 65. Marketing Mix (continued) <ul><ul><li>Determine the target market’s preferred combination of </li></ul></ul><ul><ul><li>Attributes (referred to as an ideal vector) </li></ul></ul><ul><ul><li>Examine fit between: </li></ul></ul><ul><ul><ul><li>Positions of competing products </li></ul></ul></ul><ul><ul><ul><li>The position of your product </li></ul></ul></ul><ul><ul><ul><li>The position of the ideal vector </li></ul></ul></ul><ul><ul><li>Select optimum position </li></ul></ul><ul><li>Positioning concepts </li></ul><ul><ul><li>Functional positions </li></ul></ul><ul><ul><li>Symbolic positions </li></ul></ul><ul><ul><li>Experimental positions </li></ul></ul>
    66. 66. Marketing Mix (continued) <ul><li>Product / Packaging </li></ul><ul><ul><li>Product the specifications of the actual goods or services, and how it relates to the end users needs and wants </li></ul></ul><ul><ul><ul><li>Core benefit </li></ul></ul></ul><ul><ul><ul><li>Tangible product or service </li></ul></ul></ul><ul><ul><ul><li>Augmented product or service (warranty, added value, etc.) </li></ul></ul></ul><ul><ul><li>Packaging </li></ul></ul><ul><ul><ul><li>Role is to communicate the product and it’s function and benefit. </li></ul></ul></ul><ul><ul><ul><li>Needs to sell and convince at the shelf </li></ul></ul></ul><ul><ul><ul><li>Increasingly important to be functional in delivering the product in a unique way </li></ul></ul></ul>
    67. 67. Marketing Mix (continued) <ul><li>Pricing -- The process of setting a price for a product or service, including any available discounts </li></ul><ul><ul><li>Meets pricing / profit objectives </li></ul></ul><ul><ul><li>Volume discounts, geographical variances </li></ul></ul><ul><ul><li>Price elasticity and consumer sensitivity </li></ul></ul><ul><ul><li>Fits the sensitivity of the marketplace </li></ul></ul><ul><ul><li>Supports the product positioning </li></ul></ul>
    68. 68. Marketing Mix (continued) <ul><li>Promotional mix </li></ul><ul><ul><li>Include advertising, sales promotion, trade promotion, publicity, personal or direct selling </li></ul></ul><ul><ul><ul><li>Advertising mix (print ads – newspaper and magazines), radio, television, billboards / outdoor, direct mail, brochures, catalogues, signs, in-store displays, posters, motion pictures, web pages, banner ads, e-mail marketing, etc., etc., etc.) </li></ul></ul></ul><ul><li>Place (distribution) </li></ul><ul><ul><li>Refers to how the product gets to the end consumer (retail store, wholesale distributor, etc.) </li></ul></ul>
    69. 69. Marketing Mix Advertising <ul><li>Objective: Used to convey availability and information about a “product” or “service,” persuade people to buy it, and keep the organization in the public eye </li></ul><ul><ul><li>USP (Unique selling proposition) </li></ul></ul><ul><ul><li>Brand Equity </li></ul></ul>
    70. 70. Marketing Mix Advertising Media Overall <ul><li>Select media based on it’s efficiency, effectiveness on reaching our target market. </li></ul><ul><ul><li>Target </li></ul></ul><ul><ul><ul><li>Core age of target (eg. 25-54 years old) </li></ul></ul></ul><ul><ul><ul><li>Household income >$75K </li></ul></ul></ul><ul><ul><ul><li>Like healthy alternatives to caffeinated soft drinks </li></ul></ul></ul><ul><ul><ul><li>Trendy, likes to try new products, early adopter </li></ul></ul></ul>
    71. 71. Marketing Mix Advertising Media <ul><li>Media Types </li></ul><ul><ul><li>TV/Broadcast: Will work best in established or multi-store markets where $’s are incremental to basic media plan </li></ul></ul>Long lead times Very impactful and memorable Production costs 3D visual images (sight, sound, movement, great for visual products) Expensive, Need large budget to be effective Great vehicle for reach - +
    72. 72. Marketing Mix Advertising Media <ul><li>Radio: Great for event specific promotions with call to action, difficult to use effectively until sales reach $1MM and brand identity has been established </li></ul>Short lead times, production can be done in a day Stations and formats are very fragmented Good Awareness and traffic generator with call to action Expensive to get needed reach for it to make financial sense Can reach very specific target/lifestyle groups - +
    73. 73. Marketing Mix Advertising Media <ul><li>Magazines (Quality Print): Great to build image of brand and products especially for those that benefit from visual representation or full color. They allow visibility with frequency that otherwise would not be available </li></ul>Have a long shelf life. Around for a month plus and often have several readers per copy Smaller ads in back of publication with less exposure Magazines have a specific target audience and are usually subscribed to by readers Typically expensive Most often in full color, great for image, quality of product - +
    74. 74. Marketing Mix Advertising Media <ul><li>Newspaper: Great Reach vehicle, able to communicate to a large number of people and at great frequency (daily) </li></ul>Black & white limits image and overall ad quality Short lead time, fast response Does target audience read the newspaper? Targeting options are often available (regional or market areas) Decreasing distribution Great traffic generator with call to action - +
    75. 75. Marketing Mix Advertising Media <ul><li>Outdoor/Billboards: High visibility and affordability </li></ul>Normally large inventory to select from Low cost (with flexibility) High visibility, daily impressions Billboards are very expensive, yet have significant drive by traffic Select based on targeted location (where people live and/or work) - +
    76. 76. Marketing Mix Advertising Media <ul><li>Direct Mail/Newsletters </li></ul>Response rates tend to be low Several variables that can go wrong (list, offer/call to action, image/graphics, product not relevant to customer) Creative options are available. Co-op options are also available Can be expensive for lists, printing, and postage if it doesn’t work Able to send targeted messages to specific groups (prior customers, prospects) - +
    77. 77. Marketing Mix Advertising Media <ul><li>Other: </li></ul><ul><ul><li>Web site (product/company information, promotion and events, branding) </li></ul></ul><ul><ul><li>E-marketing </li></ul></ul><ul><ul><li>Public Relations </li></ul></ul><ul><ul><li>Word of mouth </li></ul></ul><ul><ul><li>Point of Purchase (In-store displays with information and samples for customers to become familiar with brand/product) </li></ul></ul><ul><ul><li>Referral program (Ask current customers to refer you to new prospects) </li></ul></ul><ul><ul><li>Newsletters </li></ul></ul><ul><ul><li>Flyers </li></ul></ul><ul><ul><li>Special targeted programs (sponsor events where your target will be present) </li></ul></ul>
    78. 78. Marketing Mix Advertising Media Plan (Visual)                                                     Charity event                                                   PR Campaign                                                   Marketing Materials Developed                                                   Web site operating                                                   New Store Opening                                                   SPECIAL EVENTS:                                                                                                   BBC                                                   Channel 3                                                   TELEVISION:                                                   KTAR AM                                                   RADIO:                                                   Betterh Homes and Gardens                                                   Arizona Foothills                                                   MAGAZINES:                                                                                                     Get Out Weekend Pub                                                   Arizona Republic                                                   NEWSPAPER: 25 18 11 4 28 21 14 7 # 23 16 9 2 26 19 12 5 # 19 # 5 29 # 15 8 Saturday Dates 20 13 6 30 23 16 9 2 25 18 11 4 28 21 14 7 28 21 14 7 31 24 17 10 3 WEEKS (M-SU) JUNE MAY APRIL MARCH FEBRUARY JANUARY MONTHS
    79. 79. Marketing Mix Advertising Media Budget
    80. 80. Marketing Mix Advertising Media Efficiency and Effectiveness <ul><li>Analyzing Efficiency and Effectiveness </li></ul><ul><ul><li>What is working and not working? </li></ul></ul><ul><ul><li>We can affect performance by driving the process </li></ul></ul><ul><ul><ul><li>Advertising and networking drive traffic </li></ul></ul></ul><ul><ul><ul><li>Traffic, average sale and buy ratio drive sales </li></ul></ul></ul><ul><ul><ul><li>Sales impact money in you pocket </li></ul></ul></ul><ul><ul><li>Need to analyze what gives us the biggest bang for the buck and do more of it. </li></ul></ul><ul><ul><li>Using a tracking tool/spreadsheet to track every dollar spent and received (from advertising and networking) in your business </li></ul></ul>
    81. 81. <ul><li>Industry or Market Research </li></ul><ul><li>The Foundation </li></ul>
    82. 82. Industry or Market Research The Foundation <ul><li>The acquisition of corporate intelligence on a broad range of topics, including the following </li></ul><ul><ul><li>Macroeconomic </li></ul></ul><ul><ul><ul><li>Economy </li></ul></ul></ul><ul><ul><ul><li>Government </li></ul></ul></ul><ul><ul><ul><li>Legal </li></ul></ul></ul><ul><ul><ul><li>Technological </li></ul></ul></ul><ul><ul><ul><li>Ecological </li></ul></ul></ul><ul><ul><ul><li>Socio Cultural </li></ul></ul></ul>
    83. 83. Industry or Market Research The Foundation (continued) <ul><li>Market analysis and competitor analysis </li></ul><ul><ul><li>Market definition </li></ul></ul><ul><ul><li>Market size </li></ul></ul><ul><ul><li>Market segmentation </li></ul></ul><ul><ul><li>Industry structure </li></ul></ul><ul><ul><li>Porter 5 forces analysis </li></ul></ul><ul><ul><li>Supply chain </li></ul></ul><ul><ul><li>Competition and market share </li></ul></ul><ul><ul><li>Competitors strengths and weaknesses </li></ul></ul><ul><ul><li>Market trends </li></ul></ul>
    84. 84. <ul><li>Consumer Analysis or </li></ul><ul><li>Marketing Research </li></ul><ul><li>Understanding the wants and </li></ul><ul><li>needs of your customer </li></ul>
    85. 85. Consumer Analysis or Marketing Research Understanding the wants and needs of your customer <ul><li>Comprises a form of applied sociological study which concentrates on understanding the behaviors, whims, and preferences, mainly current and future, of consumers in a market based economy </li></ul><ul><ul><li>Nature of the buying decision </li></ul></ul><ul><ul><li>Participants </li></ul></ul><ul><ul><li>Demographics </li></ul></ul><ul><ul><li>Psychographics </li></ul></ul><ul><ul><li>Buyer motivation and expectation </li></ul></ul><ul><ul><li>Loyalty segments </li></ul></ul>
    86. 86. Consumer Analysis or Marketing Research Understanding the wants and needs of your customer (continued) <ul><ul><li>Types of marketing research methodologies </li></ul></ul><ul><ul><ul><li>Qualitative (depth interviews, focus groups, and projective techniques </li></ul></ul></ul><ul><ul><ul><li>Quantitative </li></ul></ul></ul><ul><ul><ul><li>Observation techniques </li></ul></ul></ul><ul><ul><ul><li>Experimental techniques </li></ul></ul></ul><ul><ul><li>Marketing Research techniques / processes </li></ul></ul><ul><ul><ul><li>Concept testing </li></ul></ul></ul><ul><ul><ul><li>Positioning research </li></ul></ul></ul><ul><ul><ul><li>Brand name testing </li></ul></ul></ul><ul><ul><ul><li>Brand equity research </li></ul></ul></ul>
    87. 87. Consumer Analysis or Marketing Research Understanding the wants and needs of your customer (continued) <ul><ul><li>Marketing Research techniques / processes, continued </li></ul></ul><ul><ul><ul><li>Segmentation research </li></ul></ul></ul><ul><ul><ul><li>Product testing </li></ul></ul></ul><ul><ul><ul><li>Demand estimation </li></ul></ul></ul><ul><ul><ul><li>Price elasticity </li></ul></ul></ul><ul><ul><ul><li>Advertising and Promotion research </li></ul></ul></ul><ul><ul><ul><li>Test marketing </li></ul></ul></ul><ul><ul><ul><li>Sales forecasting </li></ul></ul></ul><ul><ul><ul><li>Customer satisfaction surveys </li></ul></ul></ul>
    88. 88. <ul><li>Innovation and </li></ul><ul><li>New Product Development </li></ul><ul><li>Keeping the Pipeline Full </li></ul>
    89. 89. Innovation and New Product Development – Keeping the Pipeline Full <ul><ul><li>Innovation </li></ul></ul><ul><ul><ul><li>Supply pushed or demand led </li></ul></ul></ul><ul><ul><ul><li>Innovation in business: Research & development </li></ul></ul></ul><ul><ul><ul><li>Non-technical. (Business model) </li></ul></ul></ul><ul><ul><li>New product process </li></ul></ul><ul><ul><ul><li>Idea generation </li></ul></ul></ul><ul><ul><ul><li>Idea screening </li></ul></ul></ul><ul><ul><ul><li>Concept development and testing </li></ul></ul></ul>
    90. 90. Innovation and New Product Development – Keeping the Pipeline Full (continued) <ul><ul><li>New product process, continued </li></ul></ul><ul><ul><ul><li>Business analysis </li></ul></ul></ul><ul><ul><ul><li>Product testing of prototype product in typical use situation </li></ul></ul></ul><ul><ul><ul><li>Technical implementation (scaling up manufacturing) </li></ul></ul></ul><ul><ul><ul><li>Commercialization (launch) </li></ul></ul></ul><ul><ul><ul><li>Protecting new products (patents, copyright, trademarks, trade secrets) </li></ul></ul></ul>
    91. 91. <ul><li>CASE STUDIES </li></ul><ul><li>Starbucks </li></ul><ul><li>Cold Stone Creamery </li></ul><ul><li>SoBe Beverages </li></ul>
    92. 92. STARBUCKS Case Study
    93. 93. STARBUCKS AT A GLANCE <ul><li>Headquarters- Seattle, WA </li></ul><ul><li>Opened their first store at Pike Place Market in Seattle 1971. </li></ul><ul><li>Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment -- primarily through its company-operated retail stores. </li></ul><ul><li>11,784 stores worldwide as of July 2, 2006 </li></ul><ul><li>2005 annual revenues of 6.4 billion </li></ul>
    94. 94. STARBUCKS (continued) <ul><li>The Company's objective is to establish Starbucks as the most recognized and respected brand in the world. </li></ul><ul><li>To achieve this goal, the Company plans to continue to rapidly expand its retail operations, grow its specialty sales and other operations, and selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels </li></ul>
    95. 95. <ul><li>Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. </li></ul><ul><li>The following six guiding principles will help us measure the appropriateness of our decisions: </li></ul><ul><ul><li>Provide a great work environment and treat each other with respect and dignity. </li></ul></ul><ul><ul><li>Embrace diversity as an essential component in the way we do business. </li></ul></ul><ul><ul><li>Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. </li></ul></ul><ul><ul><li>Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. </li></ul></ul><ul><ul><li>Recognize that profitability is essential to our future success. </li></ul></ul>STARBUCKS Starbucks’ Mission Statement
    96. 96. <ul><li>Starbucks is committed to a role of environmental leadership in all facets of our business. </li></ul><ul><li>We fulfill this mission by a commitment to: </li></ul><ul><ul><li>Understanding of environmental issues and sharing information with our partners. </li></ul></ul><ul><ul><li>Developing innovative and flexible solutions to bring about change </li></ul></ul><ul><ul><li>Striving to buy, sell and use environmentally friendly products </li></ul></ul><ul><ul><li>Recognizing that fiscal responsibility is essential to our environmental future. </li></ul></ul><ul><ul><li>Instilling environmental responsibility as a corporate value </li></ul></ul><ul><ul><li>Measuring and monitoring our progress for each project </li></ul></ul><ul><ul><li>Encouraging all partners to share in our mission. </li></ul></ul>STARBUCKS Environmental Mission Statement
    97. 97. <ul><li>Embracing our differences: Aside from extraordinary coffee, Starbucks has made a business out of human connections, community involvement and the celebration of cultures. And so, it’s only natural that as a guiding principle, diversity is integral to everything we do. </li></ul><ul><li>The word “diversity” means many things to different people. We see diversity as “all the ways we differ and are the same.” This concept encompasses, but is not limited to, human differences with regard to race, ethnicity, gender, culture, and physical ability. In addressing diversity, we also consider issues like tenure, style, and our individual roles within the company. </li></ul><ul><li>Just as critical to our success as a global company is the idea of inclusion, defined as a combination of differences and similarities in the pursuit of new ideas and individual relationships made everyday. </li></ul>STARBUCKS POSITIONING
    98. 98. <ul><li>“ You get more than the finest coffee when you visit Starbucks—you get great people, first-rate music and a comfortable and upbeat meeting place,” says Howard Schultz, Starbucks chairman. “We establish the value of buying a product at Starbucks by our uncompromising quality and by building a personal relationship with each of our customers. Starbucks is rekindling America’s love affair with coffee, bringing romance and fresh flavor back to the brew.” </li></ul>THE STARBUCKS EXPERIENCE
    99. 99. STARBUCKS PRODUCT <ul><li>Coffee: More than 30 blends and single-origin coffees. </li></ul><ul><li>Handcrafted Beverages: Fresh-brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, and Tazo® teas. </li></ul><ul><li>Merchandise: An exclusive line of Starbucks Barista® home espresso machines, coffee brewers and grinders, a line of premium chocolate, coffee mugs and coffee accessories, compact discs and assorted gift items. </li></ul><ul><li>Global Consumer Products: Line of bottled Starbucks Frappuccino® coffee drinks, Starbucks DoubleShot® espresso drinks, Starbucks® Iced Coffee drinks, whole bean coffees and Tazo® teas at grocery, StarbucksTM Liqueurs, and a line of superpremium ice creams. </li></ul>
    100. 100. STARBUCKS PRODUCT (continued) <ul><li>Fresh Food: Baked pastries prepared daily, sandwiches, and salads. </li></ul><ul><li>Starbucks Card: Starbucks Card, a reloadable stored-value, surpassed the $1 billion mark for total activitations and reloads since its introduction in 2001. With more than 77 million cards activated to date, the Starbucks Card has continued to grow as a percentage of tender used in Starbucks retail stores. Due to its success in the U.S. and Canada, Starbucks Card programs have launched in other international markets, including Japan, Germany, Greece, Spain, Taiwan, Australia and Thailand. </li></ul><ul><li>Brand Portfolio: Starbucks Entertainment, Tazo® Tea, EthosTM Water, Seattle’s Best Coffee and Torrefazione Italia Coffee. </li></ul>
    101. 101. <ul><li>In addition to sales through company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino® coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company . </li></ul>STARBUCKS PRODUCT – Extending the Brand
    102. 102. STARBUCKS PROMOTION <ul><li>NORTH AMERICAN ALLIANCES </li></ul><ul><li>Pepsi-Cola Company, Dreyer’s Grand Ice Cream, Kraft Foods Inc., CARE, Conservation International, Johnson Development Corp., Albertsons Inc., Horizon Air, HMSHost, Barnes & Noble, United Airlines, Starwood Hotel, Chapters Inc., Safeway Inc., Marriott International Inc., Hyatt Hotels Corporation, Aramark, Compass, Sodexho, TransFair USA, SYSCO, HP, T-Mobile, TransFair Canada, White Wave, Inc., Chase VISA USA, Royal Bank Canada, Hilton, Intrawest, Wyndham, Target, Kroger, Ahold, Fortune Brands, XM Satellite Radio, Borders, Westin and Radisson. </li></ul>
    103. 103. COLD STONE CREAMERY Case Study
    104. 104. COLD STONE CREAMERY At a Glance <ul><li>Creamery Headquarters in Scottsdale, AZ </li></ul><ul><li>First location opened in Tempe, AZ 1988 </li></ul><ul><li>First Franchise location opened 1995 </li></ul><ul><li>Now over 1000 locations throughout 47 states, the U.S. Virgin Islands, Guam and Puerto Rico. Additional stores are also under development. </li></ul><ul><li>Here, traditional ice cream is replaced by an original Cold Stone Creation™. That is, freshly made, smooth and creamy ice cream blended with mix-ins of nuts, fruits and candy to artistic perfection -- and most importantly to your own exact specifications -- on a frozen stone. </li></ul><ul><li>2005 revenues exceeded 408 million </li></ul>
    105. 107. COLD STONE CREAMERY Positioning <ul><li>Cold Stones philosophy is that what others say about them is more important than what they have to say about themselves. </li></ul><ul><li>With more than 1250 stores in 47 states, they are aiming to take Cold Stone to the highest perceived quality among consumers by the end of 2009. Rather than expanding they want to distinguish the Cold Stone experience from all others. </li></ul>
    106. 108. COLD STONE CREAMERY Interesting Ice Cream Facts <ul><li>Although the origin of ice cream is unclear in history books, the first ice cream parlor in America opened in New York City in 1776 </li></ul><ul><li>In 1984, President Ronald Reagan designated July as National Ice Cream Month and the third Sunday of the month as National Ice Cream Day </li></ul><ul><li>More ice cream is sold on Sunday than any other day of the week </li></ul><ul><li>Ice cream and related frozen desserts are consumed by more than 90 percent of households in the U.S. </li></ul><ul><li>It takes the average person just about 50 licks to polish off a single scoop ice cream cone </li></ul><ul><li>How many combinations are possible at Cold Stone? A Harvard doctoral student recently calculated that there are more than 11.5 possible Creation™ combinations. It would take someone more than 421 lifetimes to try a new combination everyday, and that’s only if you started eating ice cream on the day you were born! </li></ul><ul><li>Most popular Creation at Cold Stone? Peanut Butter Cup Perfection™ made with Chocolate Ice Cream with Peanut Butter, Reese’s® Peanut Butter Cup and Fudge </li></ul>
    107. 109. <ul><li>Advertising dollars are spent on print, radio and web promotions, including distribution of coupons for free ice cream for birthdays. </li></ul><ul><li>According to Cold Stone, one of the best methods for marketing is “that 6 feet between customer and crew member. We have an audition process where we look for the personality that Cold Stone wants to deliver to the customer.” </li></ul>COLD STONE CREAMERY
    108. 110. <ul><li>Charity Tie-in Promotions </li></ul><ul><li>Event promotions </li></ul><ul><li>New kids creations-developed for a specific target segment </li></ul><ul><ul><li>Delicious Dirt™ Chocolate Ice Cream mixed with OREO ® Cookies </li></ul></ul><ul><ul><li>Sprinkleberry™ Strawberry Ice Cream mixed with Rainbow Sprinkles </li></ul></ul><ul><ul><li>Gubblebum™ Bubble Gum Ice Cream mixed with Marshmallows </li></ul></ul>COLD STONE CREAMERY
    109. 111. SoBe Beverages Case Study
    110. 112. SoBe At a Glance <ul><li>South Beach Beverage Company </li></ul><ul><li>Established in 1995 </li></ul><ul><li>Norwalk, CT based </li></ul><ul><li>The company produces and markets a line of ready-to-drink, non-carbonated juice blends and exotic teas under the brand name, &quot;SoBe&quot;. All SoBe Beverages combine great taste with herbs, minerals, vitamins and other nutrient enhancers. South Beach Beverage Company is one of the strongest brands in the Healthy Refreshment category of the beverage industry. </li></ul><ul><li>Separate operating unit of Pepsi-Cola North America </li></ul><ul><li>Over 200 million in annual revenues </li></ul>
    111. 114. SoBe Positioning & Products <ul><li>SoBe is the leader in the &quot;Healthy Refreshment Beverage&quot; category, which is a growing segment of the &quot;New Age&quot; or &quot;all natural&quot; beverage market. </li></ul><ul><li>SoBe appeals to a broad range of consumer preferences with a product line that includes juice drinks, energy/sport drinks, exotic teas and dairy-based beverages. Within these basic beverage platforms, SoBe offers significant flavor variety and herbal benefits. The SoBe Healthy Refreshment line includes: </li></ul>
    112. 115. <ul><li>Powerline – five natural fruit-flavored beverages feature potent amino acids and other elements specifically selected to fuel the mind and body for peak performance. </li></ul><ul><li>Exotic Teas And Fruit Juice Blends – a line of exotic juices and teas with natural health benefits. </li></ul><ul><li>Lizard Line - these high-energy dairy-based beverages celebrate the relationship SoBe has with action sports. </li></ul><ul><li>SoBe Adrenaline Rush – this maximum energy supplement is fortified with a unique blend of nature&quot;s most energizing elements, including D-Ribose, L-Carnitine, Taurine, Inositol, Guarana, Ginseng and Vitamins B12, B6 and C. </li></ul>SoBe Products
    113. 116. <ul><li>3C Elixirs – naturally healthy juice blends that have been enhanced with the addition of SoBe&quot;s exclusive &quot;3C&quot; package – Vitamin C, Chromium to help build lean muscle mass and Carnitine, an amino acid that helps the body release energy. </li></ul><ul><li>SoBe Adrenaline Rush – this maximum energy supplement is fortified with a unique blend of nature&quot;s most energizing elements, including D-Ribose, L-Carnitine, Taurine, Inositol, Guarana, Ginseng and Vitamins B12, B6 and C. </li></ul>SoBe Products (Continued) <ul><li>SoBe LEAN – the SoBe LEAN line is SoBe&quot;s entry into the diet category. </li></ul>
    114. 117. <ul><li>SoBe is a non-traditional marketer and focuses on generating interaction and involvement with consumers. This starts with a unique package that commands attention and differentiates the product on store shelves. The SoBe bottle features dual lizards on the label, and the neck of the bottle contains an embossed, sculpted lizard, which is the brand’s icon and mascot. </li></ul><ul><ul><li>SoBe Lean retails for $1.09 - $1.49, and is available nationwide. </li></ul></ul>SoBe Packaging
    115. 118. The lizard has become the basis of advertising, marketing, an apparel-merchandising program and e-commerce via SoBe’s website. Consumer communication is achieved primarily through point-of-sale material, integrated with promotional tie-ins, special events and spot radio.
    116. 119. <ul><li>In addition, the SoBe fleet is comprised of numerous SoBe Lizard vans, the Love Buses (five customized vintage 70’s school buses), two armored trucks, two vintage milk trucks and four Adrenaline Rush Suburbans. These vehicles blanket the nation, spreading SoBe excitement and offering product samples to consumers. </li></ul><ul><li>SoBe also has sponsorship agreements with Burton Snowboards, XBOX, No Fear, among others. </li></ul>
    117. 120. <ul><li>Consumer Promotions </li></ul><ul><li>Games & Gear </li></ul><ul><li>Outdoor </li></ul><ul><li>Event Marketing </li></ul><ul><li>Relationship Marketing </li></ul><ul><li>Place -- SoBe markets and sells its beverages through the combined efforts of Pepsi-Cola bottlers and independent distributors. </li></ul>SoBe Promotion