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Strategic Brand Management

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A quick look at two important, relevant and intertwined tools of strategic brand management: brand architecture and brand positioning.

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Strategic Brand Management

  1. 1. AMATI & Associates 1 - Strategic Brand Management – Quick Look at Brand Architecture and Positioning
  2. 2. AMATI & Associates 2 •  Background •  Brand Architecture •  Brand Positioning - Strategic Brand Management – Quick Look at Brand Architecture and Positioning
  3. 3. AMATI & Associates 3 Background While strategic brand management deals with many disciplines, there are two interconnected, high priority fields: brand architecture and brand positioning 1. Roots 2. Competitors 3. Target 4. Insights 5. Benefits 6. Values Benefits Personality 7. RTBs 8. Discriminator 9. Essence Brand PositioningBrand Architecture
  4. 4. AMATI & Associates 4 •  Background •  Brand Architecture •  Brand Positioning - Strategic Brand Management – Quick Look at Brand Architecture and Positioning
  5. 5. AMATI & Associates There is a range of possibilities for the brand architecture, from a one brand fits-all to the house of brands, which is a container for many separate brands Brand Architecture 5 MONOLITHIC BRAND MULTI-BRAND STRATEGY UMBRELLA +LABELS ENDORSED BRANDSUMBRELLA + SUB •  Strong one brand recognition; ‘big’ •  Efficient focus on one brand •  Limits width of assortment, or (if many different products) unclear position in consumer mind; not optimally effective •  Vulnerable •  Optimal proposition per category / need •  Effective focus on consumer needs; ‘close’ •  Spreading the risks •  Difficult to manage; not optimally efficient, not 1 focus •  Appears to be ‘smaller’ •  Focus on umbrella; one brand recognition; ‘big’ •  Segmentation to meet specific needs, or category dos and donts •  Danger of short term thinking, leading to confusing label policies •  Vulnerable •  Optimal proposition per category / need •  Effective focus on consumer needs; ‘close’ •  Additional ‘quality seal’ •  Company recognition •  Difficult to manage; not optimally efficient •  Can be confusing over categories •  Focus on category / need and umbrella •  Leveraging the value of the umbrella •  Umbrella is RTB •  Difficult to manage; everything related •  Can be confusing over categories; can harm umbrella + - e.g.
  6. 6. AMATI & Associates Examples of different brand architectures Brand Architecture 6 MONOLITHIC BRAND MULTI-BRAND STRATEGY UMBRELLA +LABELS ENDORSED BRANDS UMBRELLA + SUB EXAMPLE
  7. 7. AMATI & Associates Although things are not as simple as they look like….. Brand Architecture 7 MULTI-BRAND STRATEGY ENDORSED BRANDS EXAMPLE UMBRELLA + Labels UMBRELLA + SUB ILLUSTRATIVE MULTI-BRAND STRATEGY
  8. 8. AMATI & Associates 8 •  Background •  Brand Architecture •  Brand Positioning - Strategic Brand Management – Quick Look at Brand Architecture and Positioning
  9. 9. AMATI & Associates Strategic positioning is a complex issue, because there is a lot of interdependence among the dimensions which belong to the positioning strategy Brand Positioning 9 Sources: own analysis 1. Roots 2. Competitors 3. Target 4. Insights 5. Benefits 6. Values Beliefs Personality 7. RTBs 8. Discriminator 9. Essence
  10. 10. AMATI & Associates Roots are important, because need to be either leveraged or superseded Brand Positioning: 1.Roots 10 EXAMPLE •  The biggest on-line bookstore •  Direct-to-customer assemble to order PC manufacturer •  “There is no finish line” •  Large scale tabulating machines for large offices •  Beyond cleaning, enhancing beauty •  America’s washday favorite
  11. 11. AMATI & Associates 11 Ecosystem When positioning a brand is important to start from the ecosystem, looking at an extended competition Card Member Data Processing Merchant Bank Issuer Card Exchange Goods/service for plastic Credit Relationship Monthly Payments Monthly Payments Authorization Payments Payments Payments Brands Co-branded Cards Loyalty Card Brand Positioning: 2. Understand the ecosystem EXAMPLE
  12. 12. AMATI & Associates 12 Brand Positioning: 2. Competitive Mapping Competitive Maps have two objectives: 1) assess players positioning and 2) identify white spaces Source: Skopos Location Taste of Food Variety Hot Dish/ Short Time Competitive Mapping Agree Disagree Agree Disagree Agree Disagree Agree Disagree EXAMPLE
  13. 13. AMATI & Associates Use personas and define as in-depth as possible. Avoid large irrelevant demographic clustering e.g., 18-35…. Brand Positioning: 3.Target 13 Who am I? What while commuting Internet Key Drivers Relationships 16 yo, live in center of city By bus, 30 mins to go to school each way, I spent really a lot of time commuting! Watch TV on the Bus, chat with my friends, access social networks through my mobile Going around Mobile In the evening and mostly for shopping, while watching TV During the day for sms- ing my friends, social networks 1)  To show my stile 2)  I like to be busy I want to stay unique 16 yo, live in suburbs of a big city By train, at least an hour to go to school each way. Review my homework, chat with my friends In the afternoon while doing homework for social network During the day for sms- ing my friends, social networks 1)  Share experience s with friends 2)  Be with others Friends are the center of my world TV What’s that? In the evening, mostly MTV EXAMPLE
  14. 14. AMATI & Associates Brand Positioning: 4.Consumer Insight 14 Belonging Security Control Recognition Power Vitality Enjoyment Conviviality Identify an insight platform based on relevance, opportunity, and uniqueness of your proposition EXAMPLE
  15. 15. AMATI & Associates We do work with brand ladders in 3 dimensions: functional, emotional and societal Brand Positioning: 5.Benefits 15 FUNCTIONAL EMOTIONAL SOCIETAL 1.  Recognition 2.  Internal and external Visibility 3. Pride 4.  Sense of belonging to an Elite 5.  Team Engagement1.  Credibility in customers’ branding efforts 2.  Help client’s organizations in adapting in the fast changing environment 3.  Knowledge Sharing: help customers help themselves (Coaching effect) 4.  Transparency & Homogeneity for best practices in global companies 1.  Lifting the game 2. Development of one-self 3. Creating Life enriching experiences BRANDBENEFITLADDER EXAMPLE
  16. 16. AMATI & Associates Brand Positioning: 6.Values, Beliefs, Personality 16 Achievement Results Oriented Exclusive Sharing “Red Carpet” Social Leadership knowledgeable Helpful Be yourself Sense of Belonging Networking Satisfaction Trust Confidence by Heart Look at People Outside(
  17. 17. AMATI & Associates For each sub-set of benefits we have to develop relevant RTBs Brand Positioning: 7.RTB 17 FUNCTIONAL EMOTIONAL SOCIETAL Leading edge-research, continuously improved methodology, higher and higher exposure of the brand, consultations not consulting ….. Personalized resource center, Personalized best practices feedback and benchmark report Higher and higher exposure of the brand, Galas and Award ceremonies, post-event PR,, ….. De-facto (international) peer group, on-site client workshops, peer recommendation Getting articles published in relevant magazines, Events with leading Community NGOs, foundations... Supporting our own cause EXAMPLE 1.  Recognition 2.  Internal and external Visibility 3. Pride 4.  Sense of belonging to an Elite 5.  Team Engagement1.  Credibility in customers’ branding efforts 2.  Help client’s organizations in adapting in the fast changing environment 3.  Knowledge Sharing: help customers help themselves (Coaching effect) 4.  Transparency & Homogeneity for best practices in global companies 1.  Lifting the game 2. Development of one-self 3. Creating Life enriching experiences
  18. 18. AMATI & Associates The discriminator helps us standing out in a crowded space Brand Positioning: 8.Discriminator 18 •  Masculine point of view in the mating game •  See your true beauty •  The F1 dream •  The authentic innovation company EXAMPLE
  19. 19. AMATI & Associates The essence is a statement about what the brand is, our core promise Brand Positioning: 9.Essence 19 •  Leading edge fashion for the masses •  Robin Hood (robbing from big brands to give back to consumers) •  Inspiration and innovation for every athlete* in the world (*if you have a body you are an athlete) •  Board roots (for riders), surf style (for all) •  Indulgence with a progressive conscience •  Customer centric innovation, aiming at building a more sustainable world EXAMPLE
  20. 20. AMATI & Associates AMATI & Associates www.amati-associates.com 20

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