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Branding chapter 16
The document discusses key concepts in branding including brand name, brand mark, brand equity, and master brands. It provides examples of well-known master brands like Band-Aid and Crayola. The benefits of branding are outlined as distinguishing products, aiding repeat and new product sales through brand loyalty and image. Brand equity is defined and factors that contribute to brand equity and loyalty are explored. Strategies for branding like line extensions, brand extensions, and cobraning are also covered.
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Branding chapter 16
- 1. To Brand orNot to Brand? Concepts and Rules for Building the Killer Brand Module 4
- 2. Some Important Concepts… •Brand Name: The part of a brand that can be spoken including letters, words and numbers. • Brand Mark: The elements of a brand that cannot be spoken • Brand Equity: The value of company and brands names. • Master Brand: A brand so dominant that it comes to mind immediately when a product category, use, attributes or benefit is mentioned.
- 3. A look atMaster Brands Baking Soda Baking Soda Arm & Hammer Arm & Hammer Adhesive Bandages Adhesive Bandages Band-Aid Band-Aid Rum Rum Bacardi Bacardi Gelatin Gelatin Jell-O Jell-O Soup Soup Campbell’s Campbell’s Cream Cheese Cream Cheese Philadelphia Philadelphia Crayons Crayons Crayola Crayola Petroleum Jelly Petroleum Jelly Vaseline Vaseline
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- 7. So what isit exactly… • Attributes, benefits, values, culture, personality and user • Research techniques: word associations, personifying the brand, laddering up the brand essence
- 8. Benefits of Branding •Branding distinguishes products from competition • Product Identification • Aids in repeat sales • Aids in new product sales • Aids in attracting loyal customers and segments • It is the image, baby!
- 9. What is BrandEquity?? A set of assets and liabilities linked to a brand’s name and symbol that add or subtract from the value provided by a product or service to a firm and/ or that firm’s customers. Aaker, David A. (1991), Managing Brand Equity: Capitalizing on the Value of a Brand Name, The Free Press, New York
- 10. ss e lty en a ar L oy A w e Brand i t i v e Equity ed et ag e iv y p rc alit m ant Co dv Pe u Q A Associations For more see: Aaker, David A. (1995), Strategic Market Management, 4th ed., Wiley, NY
- 11. The World’s 10Most Valuable Brands – Interbrand 8/5/02 Rank Brand Value (billions) 1 Coca Cola $69.6 2 Microsoft $64.1 3 IBM $51.2 4 GE $41.3 5 Intel $30.9 6 Nokia $30 7 Disney $29.3 8 McDonald’s $26.4 9 Marlboro $24.2 10 Mercedes $21
- 13. Benefits of BrandEquity • Leverage when bargaining with distributors and retailers • Charge higher price for product • Launch extensions • Some defense against price wars • Brand valuation
- 14. Faithful or Fickle? A look at brand loyalty • Cigarettes 71% • Mayonnaise 65% • Toothpaste 61% • Coffee 58% • Athletic shoes 27% • Canned veggies 25% • Garbage bags 23%
- 15. Branding Decisions • Brand or not to brand? • Brand sponsor decision • Brand name decision • Brand strategy decision • Brand repositioning decision
- 16. Branding Strategies Brand Brand No Brand No Brand Manufacturer’s Manufacturer’s Private Brand Private Brand Brand Brand Individual Individual Family Family Combi- Combi- Individual Individual Family Family Combi- Combi- Brand Brand Brand Brand nation nation Brand Brand Brand Brand nation nation
- 17. Brand Strategy Decisions •Line extensions – • Multibrands – existing brand to flanker brands new sizes, forms, • Cobranding – flavors etc. combination of two • Brand extensions – or more brands brand names • New brands extended to new product categories
- 18. Three Questions toAsk • Krispy Kreme • Starbucks
- 19. So How doYou Do This?? Some tips from “Brand Warfare: 10 Rules for Building the Killer Brand” by David D’Alessandro
- 20. R1: It’s TheBrand, Stupid • Brand arrogance was once commonplace – Brands that were once invincible are shadows of their former selves (ABC, CBS, NBC) • The consumer revolution – Consumer attitudes changed – don’t trust “big” – Cheaper to enter business and create brands (amazon - $300,000) – Information access for consumers • When the consumer rules, arrogance kills – The power of choice & importance of differentiation
- 21. R2: Co dependencycan be Beautiful… • People pay attention to brands – they need them • Brands save time – Think OTC drugs • Brands project the right image – “No one can fault you for buying an IBM” • Brands provide an identity – Brand communities (Harley; Ebay); comfort levels
- 22. R3: A GreatBrand Message is Like a Bucking Bronco – once you are on, don’t let go… • Brand New? Who is it going to be. Brand Old? What is it and where should it go. Which is easier?? • Its not the idea that rules, it’s the execution • Brand message has to speak to consumers • Keep it relevant and consistent
- 23. R4: If youwant Great advertising, be prepared to fight for it • Beware of flatterers • It is not necessarily good advertising that the client is after • Be memorable • Don’t change the advertising because you are bored with it.
- 24. R5: When itcomes to sponsorships, there is a sucker born every 30 seconds • Get in for the right reasons • Understand the players – The event organizer, TV Networks, the athletes and their entourages • Look for a balance of power
- 25. R6: Don’t ConfuseSponsorship with a Spectator Sport • Use the sponsorship every day in every way • Set the right expectations • Make sure you achieve something measurable and real
- 26. R7: Do notallow scandal to destroy in 30 days a brand that took 100 years to build • Brand is destiny • Do not allow your enemies to define you • Do not stall. Do not allow the lawyers to stall. • You can run – but you cannot hide