Strategic brand management ppt bec bagalkot mba 2009

1. Strategic Brand Management

2. Brand Value Chain & Testing
 Evaluating the Mayo Clinic
 600k + in- and out-patients/yr
 Founded in 1800 by Dr William Woral Mayo & two sons.
 Pioneered “group practice” = Two heads are better than
one
 Two “extension” facilities in 1980s
(Scottsdale,Jacksonville)
 Mayo Graduate School of Medicine – one of largest
graduate education centers

3. Brand Value Chain & Testing
 Evaluating the Mayo Clinic
 Worldwide leader in patient care, research and
education
 Renowned for world class specialty care
 Earned a reputation as world class specialty care
 Most medical staff participate in research
 1950 Nobel Prize winners, Drs Kendall and
Hench discovered Cortisone

4. Brand Value Chain & Testing
 Use The Brand Value Chain to determine
Measurement Tactics and Resulting Marketing
Strategies
Value Marketing Customer Market Shareholder
Stages Program Mindset Performance Value
Investment
-Product -Awareness -Price Premiums -Stock Price
-Communication -Associations -Price Elasticities -P/E Ratio
-Trade -Attitudes -Market Share -Market
-Employee -Attachment -Expansion Success Capitalization
-Other -Activity -Cost Structures
-Profitability

5. Brand Value Chain & Testing
 Evaluating the Mayo Clinic ‘96 Brand Equity
Study
 Awareness 84.3%, 90+% among 45+
 Specialty ranking Top ranked at 15.4% (next at
5.3%) “..go anywhere in US for serious condition
which required highly specialized care..”
 Strongest Brand Associations 1) Scientific
Research, 2) Cancer Treatment, 3) Cardiac Care

6. Brand Value Chain & Testing
 Evaluating the Mayo Clinic ‘96 Brand Equity Study
 Associations (Thoughts & Feelings)
 Integrity (longevity, heritage, wisdom of staff, trust in institution),
 Leadership (modernity, premium quality, international prestige)
 Professionalism (staff held high standards, were intellectually
sophisticated and efficient)
 Commitment to health & healing (reputation for medical
discoveries, preventative medicine, tangible results)
 Exclusivity
 No Negative Associations

7. Brand Value Chain & Testing
 Evaluating the Mayo Clinic ‘96 Brand Equity
Study
 Product Perception ISSUE
 Outside Midwest perception of “only for rich/famous”
 Known for Tertiary Care (Not primary family care)
 Thus, “not like me”

8. Brand Value Chain & Testing
 Use The Brand Value Chain to determine
Measurement Tactics and Resulting Marketing
Strategies
Value Marketing Customer Market Shareholder
Stages Program Mindset Performance Value
Investment
Program Marketplace Investor
Multipliers Quality Conditions Sentiment
-Clarity
-Market Dynamics
-Relevance
-Competitive reactions -Growth Panel
-Distinctiveness
-Channel Support -Risk Profile
-Consistency
-Customer size & Profile -Brand Contributions

9. Brand Value Chain & Testing
 Use The Brand Value Chain to determine
Measurement Tactics and Resulting Marketing
Strategies
Value Marketing Customer Market Shareholder
Stages Program Mindset Performance Value
Investment
-Product -Awareness -Price Premiums -Stock Price
-Communication -Associations -Price Elasticities -P/E Ratio
-Trade -Attitudes -Market Share -Market
-Employee -Attachment -Expansion Success Capitalization
-Other -Activity -Cost Structures
-Profitability

10. Brand Value Chain & Testing
 Evaluating the Mayo Clinic ‘96 Brand Equity
Study
 Communication
 Word of Mouth is influential in selecting specialty care
 1/3 know at least one Mayo patient

11. Brand Value Chain & Testing
 Evaluating the Mayo Clinic ‘96 Brand Equity Study
CONCLUSIONS
 Mayo’s Brand Equity is Powerful and Precious
 As perceived by patients and consumers, Mayo’s Essence:
 Excellence The best medical, personal and technical expertise in
patient care and education
 Care Compassionate patient care and education resulting in
physical, mental and emotional well-being
 Cooperation Care and education in cooperative and inclusive
relationships among colleagues and with the patient, the patient,
the patient’s family and consumers
 Enlightenment (Wisdom) Commitment to pioneering knowledge,
insight, and truth through research and education

12. Brand Value Chain & Testing
 Evaluating the Mayo Clinic ‘96 Brand Equity
Study CONCLUSIONS
 Mayo’s Brand Equity is Powerful and Precious
 “By living out these standards fully and
consistently, the Mayo clinic had engendered in
patients and consumers a sense of confidence,
safety, hope and serenity”

13. Brand Development
Consumer Driven Marketing Cycle
Succeed And Map the
Improve Marketspace
Select Most
Assess
Valuable
Performance
Customers
Actions Strategies
Execute the Choose a
Tactical Plan Winning
Positioning
Tactics •Brand saturation
•High Cost
Define
Performance Create the
Build Tactical Plan
Measures
Operational
Mark Kerback, Kerback & Company
Capabilities

14. Brand Value Chain & Testing
 Evaluating the Mayo Clinic ‘96 Brand Equity Study
CONCLUSIONS
 A Satisfied national patient base is VITAL to maintaining
preference
 Vital to developing guidelines that protected the brand
 1999 created “Office of Brand Management”
 Responsible for the protection & enhancement of the Mayo Clinic
brand (+ monitoring)
 Developing Brand Management Guidelines & a Positioning
statement
 Implementing a Branding System (include education)
 Build awareness of Brand Management within the organization
 Research extension opportunities & risks

15. Brand Value Chain & Testing
 Evaluating the Mayo Clinic ‘96 Brand Equity
Study CONCLUSIONS
 Example of Brand Management Guidelines:
 Each new/existing Mayo Clinic branded product,
service or business relationship meets 4 criteria:
 Using name must be owned by Mayo or under full control
 Use to solely assure success of service/product not
appropriate
 Not to be used in a manner that trivalizes the name/institution
 Not shared or sold

16. Brand Value Chain & Testing
 Get to the Consumer Insight/Core Value by
 Laddering up to it
 Keep asking “WHY”, “WHY”, “WHY”
 Is Mayo Resonating with Consumers Central
Beliefs/Core Values?
 What Consumer Insight might they center
their equity on?

17. Strategic Brand Management
FINAL GROUP
CASE STUDY PROJECT
Due November 15th

18. Strategic Brand Management
New Brand Development Project (due WK10)
 Work in Four Groups of 2 and select from product categories provided
 Develop a new brand marketing plan in an existing category (Use
framework attached)
 Develop the key insight, concept & positioning
 Ensure the following are ALSO included:
 Your VISION
 Launch Rationale
 Business analysis (Competitive and market analysis, SWOT etc)
 Target audience, Key Competitive insights and Core Values (use CBBE
Pyramid)
 Projected share and financials (supported, P&L examples to be provided)
 Proposed Marketing Objectives, Strategies and Tactics

19. Strategic Brand Management
RECOMMENDED TIMETABLE
 Select groups and categories Oct18th (data up Oct 20th); assign group
tasks; conduct research searches
 Oct 25th: Out line marketing plan to share with the group;
 Nov 1st: Having reviewed available data; hypothesize financials,
consumer insights, positioning and concepts (can turn in roughs to prof
for feedback)
 Nov 8th: Draft marketing plan deck and begin conversion to power point
presentation
 Nov 15th: Turn in completed plan and conduct presentations.
FINISHED PRODUCT:
 One 10-15 Minute presentation (docked a grade if over 15 minutes!!)
 One marketing plan document (main text to be NO MORE than 5 pages..
Appendix with charts, graphs, data and research encouraged)
 Visuals encouraged.

20. Your Marketing Plan
 Purpose
 Define your core objectives, strategies and tactics in
concise summary
 Management selling tool for brand investment
 Document and sell or acknowledge results
 Provide solid, focused direction to corporation and brand
support
 Define Brand evaluation objectives
 Live Working Document

21. Measuring Brand Equity
Objective:
 To guarantee assets/liabilities are nurtured
and managed (loyalty, awareness, perceived
quality, propriety brand assets)
 Develop Focused Master Plan
 Create Long term Strategic Orientation

22. Brand Marketing Process
Measure Brand Equity
Market &
Financial
Competitive
Health
Trends
Business
Analysis & Long Term
Marketing
Analysis Consumer
Insights
Mix
SWOTs
Strategy
Strategic Implications & Strategy Development
Core Competencies, External Opportunities
Brand Vision
Brand Strategy
Strategic Role
Establish
Positioning
Concept
Three Year and ANNUAL Objectives
What do I want to Accomplish
Objectives Should be S.M.A.R.T
Annual Plan & Execution
ANNUAL STRATEGIES
How will the objectives be achieved?
Marketing Plan Execution
Market Physical Product
Package
Research
Consumer & Functional Objectives &
Pricing
Retailer Promo Strategies
And Tactical Plan
Public Advertising
Relations
Media

23. Brand Marketing Process
Measure Brand Equity
Market &
Financial
Competitive
Analysis & Long Term Strategy
Health
Trends
Analysis & Long Term Strategy
Business
Analysis Consumer
Marketing Insights
Mix
SWOTs
Strategic Implications & Strategy Development
Core Competencies, External Opportunities
Brand Vision
Brand Strategy
Strategic Role
Establish
Positioning
Concept

24. Establish
Positioning
Brand Marketing Process Concept
Three Year and ANNUAL Objectives
What do I want to Accomplish
Objectives Should be S.M.A.R.T
ANNUAL STRATEGIES
Annual Plan & Execution
How will the objectives be achieved?
Marketing Plan Execution
Market Physical Product
Package
Research
Consumer & Functional Objectives & Pricing
Retailer Promo Strategies
And Tactical Plan
Public Advertising
Relations
Media

25. Brand Marketing Process
Measure Brand Equity
Market &
Financial
Competitive
Health
Trends
Business
Analysis & Long Term
Marketing
Analysis Consumer
Insights
Mix
SWOTs
Strategy
Strategic Implications & Strategy Development
Core Competencies, External Opportunities
Brand Vision
Brand Strategy
Strategic Role
Establish
Positioning
Concept
Three Year and ANNUAL Objectives
What do I want to Accomplish
Objectives Should be S.M.A.R.T
Annual Plan & Execution
ANNUAL STRATEGIES
How will the objectives be achieved?
Marketing Plan Execution
Market Physical Product
Package
Research
Consumer & Functional Objectives &
Pricing
Retailer Promo Strategies
And Tactical Plan
Public Advertising
Relations
Media

26. Measuring Brand Equity
Market Trends Checklist

Market Conditions
•Household Pentration
•Seasonality
•Regionality (CDI/BDI)
Retail Conditions
Volume & Share •Channels of Distribution
•Industry definition & served market •Product Sourcing/availability
•Category Size & growth rates •Importance of the category to the retailer
•Category Segmentation, trends, importance to category •Retailer focus on private label
•Share of market by brand & by segment •Retailer influence over category marketing
activity
Consumer
Conditions Government
•Substitute products Conditions
•Regulations & Reqs.
•Changes in
tastes/attitudes/needs •Legislative issues

27. Measuring Brand Equity
 Assessing Competitive Trends
Competitor
Identification
Key direct competitors
• •
Competitive Scope:
Regional/National/Global
•
Competitor Focus Competitive Financials
•Importance in portfolio •P&L analysis
•Level of product activity Advantage •Cost Structure
•Level of marketing focus •Spending
•Financial resources •Profitability
Competitive Strategy
Overall mission/priorities
• • • •
Target Audience
Brand Turf/Positioning
Class of Trade (COT) importance

28. Brand Value Chain & Testing
 Use The Brand Value Chain to determine
Measurement Tactics and Resulting Marketing
Strategies
Value Marketing Customer Market Shareholder
Stages Program Mindset Performance Value
Investment
-Product -Awareness -Price Premiums -Stock Price
-Communication -Associations -Price Elasticities -P/E Ratio
-Trade -Attitudes -Market Share -Market
-Employee -Attachment -Expansion Success Capitalization
-Other -Activity -Cost Structures
-Profitability

29. Brand Value Chain & Testing
 Use The Brand Value Chain to determine
Measurement Tactics and Resulting Marketing
Strategies
Value Marketing Customer Market Shareholder
Stages Program Mindset Performance Value
Investment
Program Marketplace Investor
Multipliers Quality Conditions Sentiment
-Clarity
-Market Dynamics
-Relevance
-Competitive reactions -Growth Panel
-Distinctiveness
-Channel Support -Risk Profile
-Consistency
-Customer size & Profile -Brand Contributions

30. Measuring Brand Equity
SWOT
 Purpose: to guide thinking and help distill the key issues and
opportunities facing the Brand AND the category
 Can be done in competitive analysis
STRENGTH WEAKNESS
Inherent source of competitive Inherent cause of competitive
advantage within the Brand (of disadvantage within the Brand (of
genuine relevance to the consumer) genuine importance to consumer)
INTERNAL to the brand
Caused by the inherent nature of the Brand or our
management of it

31. Measuring Brand Equity
SWOT
 Purpose: to guide thinking and help distill the key issues and
opportunities facing the Brand AND the category
 Can be done in competitive analysis
EXTERNAL to the brand
Markets, competitors, retail, social trends etc
OPPORTUNITY THREAT
Unsatisfied or poorly satisfied need Potential problem from external source
in the marketplace which our which could undermine our Brand’s
competitive position if not addressed.
company can perform profitability

32. Consumer-Based Brand Equity
Pyramid
THIS is
Where the
Insight
Lives Consumer- 4 Intense, Active Loyalty
Consumer Acceptance Cycle
Brand
Resonance
Consumer Consumer 3 Positive Accessible Reactions
Judgments Feelings
Brand Brand 2 Points of Difference
Performance Imagery
Brand Salience 1 Deep Broad Brand Awareness

33. Consumer-Based Brand Equity
Pyramid
Loyalty
Attachment 4 Brand Relationships (WHAT About
Resonance Community You AND ME?)
Engagement
Quality Warmth, Fun Feelings
Credibility Excitement,
Judgments Consideration Security, Social 3 Brand Response (WHAT About You?)
Superiority Approval,
Self-Respect
Performance
Brand Characteristics
& Secondary Features
User Profiles Imagery
Purchase and Usage
Product Reliability,
Situations
Durability & Serviceability 2 Brand Meaning (WHAT Are You?)
Service Effectiveness, Efficiency, Personality & Values
& Empathy History, Heritage, &
Style and Design; Price Experiences
Category Identification
Needs Satisfied 1 Brand Identity (WHO Are You?)
Salience

34. Insight to Positioning
State the thought you wish to implant in your
target’s mind:
 TO (core target audience), (Brand Name),
 IS THE (frame of reference)
Power
 THAT (owned benefit) Positioning
LINKS to
 BECAUSE (support or reason to believe)
Consumer Insight

35. Introducing (Brand Name)
Succinct insight driven benefits (benefit statement)
 Consumer Insight statement (AHA not fact).
 Introducing New Brand. What it does
(relevant core benefit to consumer). Reason to
believe (how/why it does what it does).
 Reprise of positioning in closing tag.

36. Your Marketing Plan
 Fundamental Statement of Purpose
 What do I want to do (grow X% to $$)
 Objectives must be SMART
 Specific
 Measurable
 Appropriate
 Realistic
 Timebound
 Long Term and Short term

37. Brand Development
Consumer Driven Marketing Cycle
Consumer Insight: Singularly
focused need, desire or want
Strategies: Fact Based choices Actions Strategies
on who, how and why
Tactics: Activities/capabilities •Brand
–what, where and when Tactics
saturation
•High Cost
Actions: Execution, feedback,
assessment, and improvement Mark Kerback, Kerback & Company

38. YOUR MARKETING PLAN
 What is your Big Inspiring Vision?
 How will your consumer insight translate across
ALL elements of your plan?
 Positioning
 Brand Essence
 Strategies and Tactics
 WHO is your target REALLY (pscyh, demo)
 In your SWOT: What is going on competitively and
in the Market Place?…
 WHY should I invest in your launch????????