Branding strategies

Structure

A. INTRODUCTION

1. Overview and Strategy Blueprint

2. Marketing Strategy: Analysis &

perspectives

B. WHERE ARE WE NOW?

3. Environmental & Internal Analysis:

Market Information & Intelligence

C. WHERE DO WE WANT TO BE?

4. Strategic Marketing Decisions,

Choices & Mistakes

5. Segmentation, Targeting

& Positioning Strategies

6. Branding Strategies

7. Relational & Sustainability

Strategies

E. DID WE GET THERE?

14. Strategy Implementation, Control

& Metrics

D. HOW WILL WE GET THERE?

8. Product Innovation & Development

Strategies

9. Service Marketing Strategies

10. Pricing & Distribution

11. Marketing Communications

12. E-Marketing Strategies

13. Social and Ethical Strategies

Learning Objectives

Provide an overview of the complex nature of branding

Examine the ways in which consumers attach meaning to brands

Discuss ways in which brand managers can streamline brand costs

Identify the various ways in which brand managers can strategically create relationships between their brands and consumers

Present several strategic assessment tools that will aid the brand manager in assessing the nature of brand meaning and value

Introduction

Branding is a major component of product strategy

Brands communicate valuable information to the consumer

To the customer perception is reality

The ability to develop and nurture effective brands is probably the single most important skill set within the marketers professional toolkit

Strategic Brand Management

Two important questions: (1) How can we use brand strategy to

reduce our overall costs ?

(2) How can brand strategy differentiate our offerings and help us build a

meaningful relationship with our target consumer?

Branding and Functionality

American Marketing Association defines a brand as a name, symbol, word, sign design or combination that differentiates one or more offerings of a seller or group of sellers from the competition.

Brands perform a series of functions for both the buyer and seller. For the buyer brands help with product identification, signal

quality, provide social status

For the seller brands facilitate customer identification, breed customer familiarity, identify specific product offerings, differentiate offering, make the offering distinct, enhance brand loyalty

Brand Identity

Brand has a core identity, which is its essence.

Brand can also be imbued with organizational attributes (e.g., innovative, young, socially-responsible, etc.) and certain expectations in terms of geographic coverage (e.g., local vs. global).

Brand can become synonymous with a particular person. A brand is a complex entity, and it potentially means

different things to different people. Aaker (2004) emphasizes that successful brand companies

have a clear idea of their brand identity.

Corporate vs. Product Branding

There is an important difference between company or corporate branding and its effects versus the use of product brands or family branding.

When a company uses a distinctive corporate brand name, then everything that it does using that name must be consistent as the name will become synonymous with a certain set of expectations.

The use of different brand names for different quality levels is a good way to handle this kind of perceptual issue

Where corporate branding becomes particularly critical is when the company produces a great variety of products that are quite distinct from each other and wants to present itself as a good corporate citizen.

Brand Equity

David Aaker Model of Brand

Equity

Brand Loyalty

Brand Equity

Brand Awareness

Perceived Quality

Brand Associations

Other Proprietary

Assets

Create positive feelings and

attitudes

Trade secrets, Patents, IP

Reason to buy, point of

differentiation

Measures the Knowledge about

The brand

Attracting new customer is 5 times

Costlier than Retaining

Existing customer

Brand Architecture

A brand portfolio can contain a variety of different types of brand.

The brand relationship spectrum developed by Aaker & Joachimsthaler 2000b, helps with brand architectural analysis.

House of brands at one extreme to branded house at the other

P&G and Colgate Palmolive represent a house of brands Virgin , Himalayas represent Branded House

A house of brands allows the company to potentially:

Avoid incompatible brand associations Signal breakthrough advantages Own a new product class association Avoid channel conflict

Brand Architecture

The next category after house of brand is the

endorsed brand, which builds on its connection

to a known brand, this connection can be strong

or weak.

Sub-brands are strongly connected to the parent

brand and build additional associations. Sony

waio

Branded house: The corporate name has the

dominant driving position for a variety of product

offerings.

Brand Leveraging

leveraging attaching the name to other

company offerings

Co-branding

Bringing together two separate company brands to be marketed together to create a new joint offering and additional value for the customer.

Brand value calculation (interbrand

methodology)

Brand value is the net present value (NPV) of the

forecast brand earnings, discounted by the brand

discount rate. The NPV calculation comprises both

the forecast period and the period beyond,

reflecting the ability of brands to continue

generating future earnings.

New brand valuation mechanisms

Brand health Berg, Matthews and OHare (2007) suggest that the proper assessment of brand health involves the interrelating of five metrics:

- Brand leadership

- Brand liabilities

- Brand attractiveness

- Brand distinctiveness

- Brand satisfaction.

Brand audit: Comprehensive examination of the various sources of brand equity from the perspective of the company as well as the consumer.

Cost Reduction, Brand Efficiency and

Brand Health

Papasolomou and Vrontis (2006) found that when the company

treats its own employees as customers, it enhances the potential

for the creation of a service culture, which in turn will help to

create a stronger brand.

In order to create a service culture, a company should view

employees as internal customers, meet or exceed service

standard expectations, provide training and development for

employees to make service their first priority, and offer a series

of employee incentives to improve performance.

INTERNAL MARKETING

Brand Wheel (Ward ,1999)

Values : aspects of the firm in relation to its place in society

Personality: Personality trait that are associated with the brand

If this brand were a animal/bird, what it would it be?

If this brand were a person, how would you describe?

Table 6.1: Brands vs. Lovemarks

Brand Lovemark

stands for information focuses on relationship

recognized by consumers loved by people

is generic is personal

presents a narrative creates a love story

promises quality presents a touch of sensuality

is symbolic is iconic

is defined is infused

is a statement is a story

a set of defined attributes is wrapped in mystery

is a set of values is a spirit

is professional is passionately creative

needs an advertising agency needs an ideas company

Lovemarks, the latest brand thinking

LOVE MARKS (Pawle and Cooper (2006)

Conclusion

Strategic Brand management not only requires understanding of brand costs and profits but also consumer perceptions of brand meaning, image and value.

Tactical decisions must never be attempted without a clear understanding of the perceptual implications of those decisions.

The company that regularly assesses its brand equity will be in a better position to maintain its relevance with its target markets and ensure not only its long-term brand survival, but also its profitability and market leadership.