Georgetown University Center for Continuing and Professional Education
Building Strong Brands Georgetown University Center for Continuing and Professional Education Fall 2009 CPD BSB Fall 09 A 1
'Brand Management' - Syllabus Structure What is a Brand? Developing a Brand Marketing Programs Brand Performance. CPD BSB Fall 09 A 2
IYRNE #1 Be engaged Think! Have fun Remember: you get out what you put in CPD BSB Fall 09 A 3
What is a Brand? CPD BSB Fall 09 A 4
What is a Brand? CPD BSB Fall 09 A 5
What is a Brand? Mark of identification • Who something belonged to • Who something came from Name or just symbol CPD BSB Fall 09 A 6
What is a Brand? But now a Brand is NOT just a name or symbol A Brand is not a Company A Brand is not a Product Nor even ALL the Products that bear that Brand It's the totality of all the Associations and Values that Brand mark conveys CPD BSB Fall 09 A 7
What is a Brand? 'A brand is a set of associations linked to a name, mark, or symbol associated with a product or service. The difference between a name and a brand is that a name doesn't have associations; it is simply a name. A name becomes a brand when people link it to other things. A brand is much like a reputation' – Tim Calkins, 'The Challenge of Branding', Kellogg on Branding CPD BSB Fall 09 A 8
What is a Brand? And because Brands are all about associations and values, they are necessarily about beliefs. So they exist in people's minds. And different people have different minds. So Brands mean different things to different people CPD BSB Fall 09 A 9
What is a Brand The Brand Prism Product or Service Brand Perceptions Calkins: Challenge of Branding CPD BSB Fall 09 A 10
Beer taste perception - unbranded Pabst Bud Miller Lite Guinness Colt 45 Coors CPD BSB Fall 09 A 11
Beer taste perception - branded Colt 45 Pabst Coors Guinness Miller Lite Bud CPD BSB Fall 09 A 12
Why do brands matter? To consumers: • • • Identification Differentiation Facilitate choice Tell you who and where things come from Guarantee consistency Tell you what to expect Give you quality reassurance Say something about you Create communities Enhances satisfaction CPD BSB Fall 09 A 13
Why do Brands matter? To businesses • Identify your products through the market process • They provide legal protection • Encapsulate and convey a set of associations and values Functional Emotional CPD BSB Fall 09 A 14
Why do Brands matter? Efficiency + Competitive Advantage Financial Reward CPD BSB Fall 09 A 15
What makes a strong Brand? Awareness Credibility Relevance • Functional • Emotional Distinctiveness CPD BSB Fall 09 A 16
IYRNE #2 Brands are all about associations They exist only in the minds Strong brands need: • Awareness • Credibility • Relevance Functional Emotional • Distinctiveness CPD BSB Fall 09 A 17
Brand Equity CPD BSB Fall 09 A 18
"Equity" "The residual value of a business or property beyond any mortgage thereon and liability therein". CPD BSB Fall 09 A 19
Sources of Brand Equity Brand Awareness Brand Image • Strength of brand associations • Favorability of brand associations • Uniqueness of brand associations CPD BSB Fall 09 A 20
Sources of Brand Equity Direct experience Perceived image through multiplicity of information, messages and inputs all around us CPD BSB Fall 09 A 21
The Four Steps of Brand Building Relationships Response Meaning Identity CPD BSB Fall 09 A 22
Brand Equity Pyramid Relationships Resonance Response Judgments Meaning Performance Identity Feelings Imagery Salience CPD BSB Fall 09 A 23
Interbrand's Best Global Brands 2008 CPD BSB Fall 09 A 24
Interbrand's Best Global Brands 2008 Recognition Consistency Emotion Uniqueness Adaptability Management CPD BSB Fall 09 A 25
Interbrand's Best Global Brands 2008 Financial Analysis • Forecasted current and future revenue specifically attributable to the brand 'Role of Brand' Analysis • A measure of how the brand influences customer demand at the point of purchase Brand Strength Analysis • A benchmark of the brand's ability to secure ongoing customer demand (loyalty, repurchase, retention) CPD BSB Fall 09 A 26
2009 Brand Rank Coca Cola 1 IBM 2 Microsoft 3 GE 4 Nokia 5 Mc. Donald 6 Google 7 Toyota 8 Intel 9 Disney 10 HP 11 Brand Value +/- $69 bn +3% $60 bn +2% $57 bn -4% $48 bn -10% $35 bn -3% $32 bn +4% $32 bn +25% $31 bn -8% $31 bn -2% $28 bn -3% CPD BSB Fall 09 A +2% $24 bn 2008 Rank 2000 Rank 1 2 3 4 5 8 10 6 7 9 12 1 2 3 6 4 9 *** 15 5 8 *** 27
Interbrand's Best Global Brands 2009 Top gainers CPD BSB Fall 09 A 28
Interbrand's Best Global Brands 2009 Top losers CPD BSB Fall 09 A 29
Interbrand's Best Global Brands It tells your whether you are investing adequately on your brand It tells you whether you have a marketing strategy that positions your brand around the right messages It tells you whether you have the right short -term tactics to drive value CPD BSB Fall 09 A 30
IYRNE #3 Brand Equity derives from our direct experience of a brand the image of it we get from a multitude of other sources Strong brands - brands with strong Brand Equity - go beyond being merely well known and competitive: they establish loyal bonds of attachment with their consumers CPD BSB Fall 09 A 31
Brand Positioning CPD BSB Fall 09 A 32
Brand Positioning The definition of a Brand's discriminating benefit CPD BSB Fall 09 A 33
Positioning (Corporation/Brand/Product) is the best (single most important claim) among all (competitive frame) because (single most important support) CPD BSB Fall 09 A 34
Brand Positioning KGF: • In the market for "x", "a" is the brand that delivers "y" because of "z" CPD BSB Fall 09 A 35
Brand Positioning KGF: • In the market for detergents, Tide is the brand that delivers the best whiteness because of miracle ingredient XP 7 CPD BSB Fall 09 A 36
KGF Brand Positioning Target? Emotional factors? 37 CPD BSB Fall 09 A
Unilever Brand Positioning The Competitive Environment The Target The Insight The Benefits The Reasons to Believe The Values and Personality The Discriminator • The single most compelling reason for the consumer to choose the brand The Essence CPD BSB Fall 09 A 38
Dove Brand Key CPD BSB Fall 09 A 39
Dove Brand Key Insight • Soap leaves skin feeling dry and tight Target • Women who want to care for their skin • …. who want to look and feel their personal best • …. who are beginning to feel the effects of dry skin CPD BSB Fall 09 A 40
Dove Brand Key Competitive environment • Dove bar bridges soap and skincare. Many women consider it part of their beauty routines. It competes directly with premium soaps such as Nivea and Olay. Benefits • Won't dry my skin like soap can • Makes skin soft and smooth • Helps me feel more feminine CPD BSB Fall 09 A 41
Dove Brand Key Reasons to Believe • • • Contains ¼ moisturizing cream Recommended by doctors Has clinical proof Endorsed by users Creamy lather Values & Personality • Honesty, purity, femininity, optimism, inner confidence CPD BSB Fall 09 A 42
Dove Brand Key Discriminator • Dove won't dry my skin like soap can, because it contains ¼ moisturizing cream Essence • Femininity restored to me and my skin CPD BSB Fall 09 A 43
Brand Values Brand Proposition Brand Essence Benefits . Substantiators Characteristics CPD BSB Fall 09 A 44
Nike Example Values Freedom of self-expression Achievement/ Proposition Winning The best sports gear used by the best sports people that inspires you to go beyond yourself Benefits • Makes you look cool/ stylish Essence Self-belief to rise to the challenge Substantiators • Pure, modem "fluid" design Inspiration • Sponsorship of Sports Stars and Irreverence teams who re-write the • Helps you • Ultimaterules yet simple perform better technology (Air) Flair and creativity Charismatic, • Makes you stylish & confident cool Personality Naturally gifted CPD BSB Fall 09 A 45
IYRNE #4 There are many ways in which a Brand's Positioning can be expressed. Essentially though it is about defining its discriminating competitive benefit. CPD BSB Fall 09 A 46
Assignment 1 – Porsche Read HBS case: Dr. Ing. h. c. F. Porsche What are the issues in debate that some think might be a threat to the Porsche brand equity? How do you personally assess the risks and rewards to the brand equity of the alternative courses of action? CPD BSB Fall 09 A 47
Assignment 1 – Porsche Email responses to me by Tuesday October 13 Max I page – bullet points fine Be prepared to discuss and present your point of view in class next week CPD BSB Fall 09 A 48
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