To Brand or Not to Brand?Concepts and Rules for Building the Killer Brand Module 4
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.
A look at Master BrandsBaking SodaBaking Soda Arm & Hammer Arm & HammerAdhesive BandagesAdhesive Bandages Band-Aid Band-AidRumRum Bacardi BacardiGelatinGelatin Jell-O Jell-OSoupSoup Campbell’s Campbell’sCream CheeseCream Cheese Philadelphia PhiladelphiaCrayonsCrayons Crayola CrayolaPetroleum JellyPetroleum Jelly Vaseline Vaseline
So what is it exactly…• Attributes, benefits, values, culture, personality and user• Research techniques: word associations, personifying the brand, laddering up the brand essence
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!
What is Brand Equity?? A set of assets andliabilities linked to a brand’s name and symbol that add or subtract from the value provided by aproduct or service to a firm and/ or that firm’s customers.Aaker, David A. (1991), Managing Brand Equity: Capitalizing onthe Value of a Brand Name, The Free Press, New York
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 antCo dv Pe u Q A Associations For more see: Aaker, David A. (1995), Strategic Market Management, 4th ed., Wiley, NY
The World’s 10 Most Valuable Brands – Interbrand 8/5/02Rank Brand Value (billions)1 Coca Cola $69.62 Microsoft $64.13 IBM $51.24 GE $41.35 Intel $30.96 Nokia $307 Disney $29.38 McDonald’s $26.49 Marlboro $24.210 Mercedes $21
Benefits of Brand Equity• Leverage when bargaining with distributors and retailers• Charge higher price for product• Launch extensions• Some defense against price wars• Brand valuation
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%
Branding Decisions• Brand or not to brand?• Brand sponsor decision• Brand name decision• Brand strategy decision• Brand repositioning decision
Branding Strategies Brand Brand No Brand No Brand Manufacturer’s Manufacturer’s Private Brand Private Brand Brand BrandIndividual Individual Family Family Combi- Combi- Individual Individual Family Family Combi- Combi- Brand Brand Brand Brand nation nation Brand Brand Brand Brand nation nation
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
Three Questions to Ask• Krispy Kreme• Starbucks
So How do You Do This?? Some tips from “Brand Warfare: 10 Rules for Building the Killer Brand” by David D’Alessandro
R1: It’s The Brand, 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
R2: Co dependency can 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
R3: A Great Brand 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
R4: If you want 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.
R5: When it comes 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
R6: Don’t Confuse Sponsorship with a Spectator Sport• Use the sponsorship every day in every way• Set the right expectations• Make sure you achieve something measurable and real
R7: Do not allow 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