A product can be purely functional.But brands evoke feelings.What are the perceptions and feelings that come to your mind when you think of these brands vs others?
Core benefit – music entertainment on the moveGeneric product – ability to play music downloaded from the web or ripped from CDExpected product – solid state device with no moving parts, 64-128 MB memory, slot for memory card, softwareAugmented product – color LCD screen, audio EQ, ability to store other types of filesPotential product – voice control programming, design, extended battery lifeBrand diff lies in the augmented product onewards
Introduction to Brand Management
MB4019BRANDING AND MARKETING COMMUNICATION Master of Business Administration School of Business and Management Institut Teknologi Bandung
BACKGROUND• Brand is a strategic asset for companies• Brand management incosistency will generally lead to failure and success will bring significant advantages for companies• Few know how to manage brand properly• This course is designed to help students learning about how to be a good assistant brand manager (as your first appointment in brand management)
LEARNING GOALS1. To build students’ skills in analysis of branding situation using the concept they have learned2. To develop decision making skill that enable students to identify alternative solutions and choose the one which can strengthen brand position in the market3. To develop team work and communication skills and leadership which is required to run brand management activities
LEARNING OUTCOMESAfter completing this course, students willhave required competencies as an assistantbrand manager and demonstrateleadership, teamwork, and communicationskill required to perform their role as assistantbrand manager effectively.
COURSE STRUCTURE Understanding of brand Ability to Develop Plan elements for Branding Decision Ready as Assistant and Create Mock Ups Understanding of Brand Brand Manager (brand Product relationship elements, product, ads and touchpoints) Understanding of Brand Pricing Understanding of Brand Ability to Develop Distribution Branding Decision Understanding of Brand marketing Understanding of Brand Touchpoints Ability to Identify Brand Problems Ability to conduct Brand Performance AnalysisUnderstanding of Brand, BrandRole, Brand Objectives, Brand Understanding of Understanding of Brand Equity, and Brand Brand Measures Analysis Steps and Tools Management
EVALUATION Item Weight Quiz 15%Group assignment 30% Mid Test 25% Final Test 30% TOTAL 100 % BC B AB A
STUDENT GUIDANCEIn order to succeed, students are advised to dothe followings:• Allocate sufficient time for self preparation• Discuss concepts and cases with their group• Elaborate practical cases apart from cases given• Have a proper notes of all lecture• Contribute actively in the class
REFERENCESMain text book:• Kevin L. Keller, 2008, Strategic Brand Management, 3rd Edition, Prentice Hall.Supporting text:• Gabriela Salinas, 2009, The International Brand Valuation Manual: a complete overview and analysis of brand valuation techniques, methodologies and applications, John Wiley & Sons. Ltd.• John A. Davis, 2010, Competitive Success: how branding adds value, John Wiley & Sons, Ltd.
NEED TO DISCUSS?• Director Room, MBA ITB Building• Call 022-2504308 ext 126• E-mail firstname.lastname@example.org• From Monday to Friday, 8am – 5pm
MM6016 Branding and Marketing CommunicationIntroduction toBrand
HISTORY OF BRAND• Old Norse word: “Brandr” = “To Burn”• Greeks and Romans puts their signatures/symbols on wet claypots• Pottery communities
TRADITIONAL BRAND DEFINITION• It’s a mark• Different forms: name, logo, symbol, design, or combination of those• Purpose: to differentiate• Focus: tangible
TODAY’S PRACTICAL BRAND DEFINITION• Set of associations or known descriptions• Stored in people’s mind• Which is represented, at least, by name (this is the most remembered element of a brand)• Focus: intangible• Holt (2003): “Brand is perceptual entity, rooted in reality”
WHAT IS YOUR PERCEPTION ABOUT... BANK MANDIRI BANK CENTURY GARUDA INDONESIA MERPATI AIRLINES APPLE IPAD SAMSUNG GALAXY TAB
MANIFOLDS OF BRAND DEFINITION Source: Berthon et al. (2007)
HOLISTIC DEFINITION OF BRAND (De Chernatony, 2006)• Input perspective – Brand as logo – Brand as identity – Brand as quality indicator – Brand as values – Brand as vision• Output perspective – Brand as image – Brand as relationship• Time perspective – Brand is a dynamic entity
BRAND DEFINITION (UU 15/2001)1. Merek adalah tanda yang berupa gambar, nama, kata, huruf-huruf, angka-angka, susunan warna, atau kombinasi dari unsur-unsur tersebut yang memiliki daya pembeda dan digunakan dalam kegiatan perdagangan barang atau jasa.2. Merek Dagang adalah Merek yang digunakan pada barang yang diperdagangkan oleh seseorang atau beberapa orang secara bersama-sama atau badan hukum untuk membedakan dengan barang-barang sejenis lainnya.3. Merek Jasa adalah Merek yang digunakan pada jasa yang diperdagangkan oleh seseorang atau beberapa orang secara bersama-sama atau badan hukum untuk membedakan dengan jasa-jasa sejenis lainnya.
MM6016 Branding and Marketing CommunicationBrand Roles &Objectives
Quality Quick Signal Reference Bring To moreIdentify revenue Brand As Toguarantee leverage Offsetting To reflect performance failure personality
MM6016 Branding and Marketing CommunicationBRAND RELATIONSHIP SPECTRUM 38
TYPES OF BRAND RELATIONSHIPS• BRANDED HOUSE• SUB BRANDS• ENDORSED BRANDS• HOUSE OF BRANDS
BRANDED HOUSE• A single identity that encompasses all products (example: BMW, Microsoft, CNN)• Brand strategy implications: – Advantages: requires fewer resources, minimize misunderstanding, easier alignment – Disadvantages: inability to appeal diverse consumer segments, generic brand campaign which might not be memorable, creativity is hindered, consequence of failure is larger
SUB BRANDS• A strong brand at a level under the master brand (i.e. a sub brand). Example: Nike Air Jordan, Lenovo Thinkpad• Brand strategy implications: – Advantages: both brands (master and sub brands) give each other recognition and create new associations that can help the market’s understanding of both brands, helps growing market share and shareholder benefits, greater loyalty from distribution partners – Disadvantages: complexity and expenses are added to marketing communication, may dilute or confuse master brand, complex distribution strategy, create a single point of attack for competitors.
ENDORSED BRANDS• Independent brand, which is overtly endorsed by a master brand (example: Polo by Ralph Lauren, Ibis by Accor Group etc)• Brand strategy implications: – Advantages: provide credibility for the endorsed brands, endorsed brand benefits from the master brand’s reputation, can break into competitor’s territory – Disadvantages: can be expensive, too many endorsement may signal weak sub-brands, greater consequences of failure
HOUSE OF BRANDS• Multiple strong brands housed in a de- emphasized, weak or unknown corporate entity (example: Procter & Gamble, Kao etc)• Brand strategy implications: – Advantages: each brand can maximize impact on market or niches, individual brand can be specified to fit a target market, increase variations of new revenue streams, more creativity and talents – Disadvantages: little or no leverage can be used with the parent association (remember the Indonesat tagline: “Punya Indosat”), more expensive, creating internal rivalries, hard to unify customer loyalty, confusing image (may not be aligned perfectly)
MM6016 Branding and Marketing CommunicationBRAND PORTFOLIO 44
LITERAL DEFINITION• Keller (2008, p. 434)“the set of all brands and brand lines that aparticular firm offers for sale to buyers in aparticular category”• Aaker (2004, p. 14)“Brand portfolio is both owned brands and brandslinked through alliances, which are considered as ateam of brands working together, each withassigned roles to enable and support businessstrategies”
PRACTICAL DEFINITIONBrand portfolio is the collection ofall brands owned by a particularcompany, which ranges acrosscategories and products.
Accor Group Coca Cola Company(http://home.hospemag.com/co/accor) http://foodanddrinkbusiness.com/?p=4403
BRAND PORTFOLIO CONCEPTS (2) (KELLER, 2008 P. 434)• Brand line: all products sold under a particular brand• Product line: a group of products within a product category which are closely related, sold to the same customer group, same outlets, or fall within given price ranges• Product mix: all product lines made available to buyers• Brand mix: all brand lines available to buyers• Depth of branding strategy: how deep is the brand portfolio• Breadth of branding strategy: how far is a brand stretched to include other product categories
MM6016 Branding and Marketing CommunicationBRAND POSITIONING 50
DEFINITION• Brand Positioning is “the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s mind”(Keller, 2008)• The distinctiveness is the product of benchmark againts competitors or customers’ point of reference• According to Kotler and Keller (2006), positioning does not necessarily create distinct characteristics, because of different competitive strategies applied by companies.
CREATING POSITIONING (2)Keller (2008):1. Determining the frame of reference: – Target consumers – Competitors2. Determining the ideal POP and POD of brand associations – How the brand is similar to those competitors – How the brand is different from them
SEGMENTING• Segmentation is the process of dividing a whole market into group of buyers• Bases for segmentation: – Product-based: category, function, size, etc. – Consumer-based: demography, geography, psycography and behavior• Good segment criteria: – Identifiable – Considerable size – Accessible – Responsive
TARGETING• Targeting is an act of choosing one or more of the identified segments• The selection is based on: – Market attractiveness – Competitive positioning• An innovative company digs down each market segment to find new needs• The newly identified needs is scrutinized to measure potential growth in the future• Different types of targeting: – One segment targeting – Multiple segment targeting – Combined segment targeting – Mass market targeting
MM6016 Branding and Marketing CommunicationBRAND AND PRODUCT 60
BRANDS VS PRODUCTS Product BrandAnything we can offer to a Sum total of consumermarket for attention, perceptions and feelings about the product’s attributes andacquisition, use, or how they perform, about theconsumption that might brand name and what it standssatisfy a need or want. for, and about the company associated with the brand. 61
PRODUCTS VS BRANDSComputer CarBeverageElectronicAppliance 62
RELATIONSHIP BETWEEN PRODUCT & BRAND (3) ResonanceCore product benefit Judgments Feelings Performance Imagery Salience Brand building equity pyramid 65
PRODUCT, BRAND AND CONSUMERS• Product used to dictates brand. The situation changed now• Brand influences purchase• Brand is perceived and experienced by consumers• Brand used to be company’s belonging, but now it is shared with consumers Konsumen Konsumen Perusahaan Perusahaan Produk Brand Brand Produk Perusahaan Brand Konsumen (a) (b) (c)
BRAND IDENTITY AND IMAGE67 Brand vision Brand management process: and purpose Brand perception process: top-down Bottom-up Core brand values Brand personality codes Semiotic invariants Strategic benefits and attributes Physical signature, family resemblance Product A.. Product B .. Product N .. Typical brand actions Permanent fluctuations of the market Evolution of competition, life stles, technology
MM6016 Branding and Marketing CommunicationSTRATEGIC BRAND MANAGEMENT 68
CONSIDERATIONS AND STEPS• Brand Life Cycle• Davis (2010): brand has to maintain its relevance• Keller (2008):
STEP 1 • Mental Maps • Competitive frame of reference • Points of parity and points of differenceIdentify and Establish Brand Positioning • Core brand associations and Values • Brand manatra 70
BRAND ELEMENTS• Kapferer (2008) Brand concept (value proposition) Tangible and intangible Brand name and symbols Product or service Semiotic invariants Experience
STEP 2 • Mixing and matching of brand elements • Integrating brand marketing activitiesPlan and implement • Leveraging secondary associations Brand marketing programs 72
BRAND MARKETING PROGRAMS• Davis (2010) – Communication objectives – Messages – Mode (touchpoints) – Evaluation – Adjustment
BRAND EVOLVESSource: McEnaly and de Chernatony, 1999
MM6016 Branding and Marketing CommunicationCASE 1: SAMSUNGWRITTEN BY FAN YE AND CHRISTIAN KIM UNDER SUPERVISION OF PROF. ROBINRITCHIE OF RICHARD IVEY SCHOOL OF BUSINESS IN 2004 80
SAMSUNG HISTORY• From small trading company to an economy powerhouse• Operated in 67 countries with more than 175000 employees worldwide• Surpassed Hyundai to become the leading business group in South Korea
“Behind this impressive growth isSamsung’s effort to redefine itselfas a vendor of cutting edgeconsumer technology” (P. 1)
“By 2000, the company’s successfullaunching of innovative product suchas mobile phone, PDA, MP3 player,and digital TV had establishedSamsung as a credible player” (p. 4)
SAMSUNG’S BRANDING EFFORT• Samsung saw digital product as a major trend in consumer electronics• The company put a lot of investment in R&D and marketing of digital products since then• In 1999, Samsung ran a global campaign of “SAMSUNG DigitAll – everyone’s invited” to position the company as a producer of innovative and easy to use consumer electronic products• Samsung moved into high profile marketing campaign by sponsoring the 2000 olympic in Sydney• Increasing marketing communication budget by 35%• Featured some mobile phones in two box office movies: The Matrix: Reloaded and The Matrix: Revolution• Samsung Electronic had redirected its focus away from mass merchants to specialty retailers like Best Buy, Circuit City and CompUSA
MM6016 Branding and Marketing CommunicationCASE 2: FRANZ COLLECTIONWRITTEN BY PROF. LIEN TI BEI (NATIONAL CHENGCHI UNIVERSITY) AND PROF.SHIH-FEN CHEN (RICHARD IVEY SCHOOL OF BUSINESS) IN 2010 85
FRANZ COLLECTION HISTORY• Franz Collection Inc. (Franz) is a Taiwan based manufacturer which specialized in functional and home décor accessories.• The company was originated from Seagull Décor Co. Ltd which sold crafts, gifts, ornaments, and home décor items.• Seagull was a pure original equipment manufacturing (OEM) company, flourished by capitalizing on the country’s skills in low-cost manufacturing and assembly.
• Seagull moved to trading business and became an ODM company (Original Design Manufacturing)• As an ODM, Seagull was known by its design, creativity, cost effective, and efficient designers.• The design skill elevated and Francis Chen, the owner, decided to launch their own brand: FRANZ
“Chen was aware that owning abrand was not as simple asputting a logo on theproduct...Chen also had toconsider the resistance fromSeagull’s current customers.” (p.5)
“To prevent potential conflict withcurrent clients, Chen set up a separatecompany, Franz Collection Inc. in bothTaiwan and the United States in 2001.The separation helped position Franz as apremium brand in its own right,independent of what Seagull stood for”(p. 6)
FRANZ BRANDING EFFORTS• Focus on porcelain (p. 6)• Described the brand essence and spirit (p. 9)• Set up a logo (p. 10)• Set up the principle of design and develop required skills (p. 10)• Set up pricing (p. 5)• Set up marketing channel (p. 8)• Run marketing campaign (p. 9)
“OEM or ODM is the kind of business onorder-to-build. You make nothing if thereis no order. A branded product meansthat you control your own direction. OBMwas not an easy choice. It was anunknown terrain and there were risks.But we went ahead, taking one step at atime.” (p. 13)