comp adv brands

7/31/2019 Comp Adv Brands

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Martin BrandtPresident, proBRAND

Menlo Park, California

Taipei, June 2000

The Total Brand Management Approach

Building World-Class Brands

For Competitive Advantage


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2000

New Marketing Realities

I used to believe that

a good product sold itself.

Phil Knight, Chairman Nike


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2000

New Marketing Realities

The computer industry has largely becomeone that services consumers who use theirown discretionary spending to purchase aproduct, and who apply the sameexpectations to those products that theyhave for other household goods. Intel hashad to start adjusting to this new reality.

Andy Grove


5/31

2000

Brand vs. Product Life Cycles

Time

Equity

Brand Life Cycle

Product Life Cycles


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2000

Companies make products

but customers buy brands.

What is Brand?


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2000

What Is a Brand?

Brand: the tangible product plus intangiblevalues, associations, and expectations

attached to the product by the customer.

Dell

Dimension XPS D300

Brand

Product/sub-brand

Company

Model


8/31

2000

Redefining brand

Brand = ExperienceBrand = Experience


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2000

Brand as experience

Economy as a whole is moving towardexperience as the place to differentiateand claim economic value.


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2000

The progression of economic value

Commodities

Source: Pine & Gilmore: The Experience EconomySource: Pine & Gilmore: The Experience Economy

Products

Services

Experiences

DifferentiatedDifferentiated

UndifferentiatedUndifferentiated

Relevant toRelevant to

Irrelevant toIrrelevant to

Needs of

Customers

Needs of

Customers

ValueValueLowLow HighHigh


11/31

2000

Dell gets it

We believe that the quality and natureWe believe that the quality and nature

of the customer relationship andof the customer relationship andexperience is going to be the nextexperience is going to be the next

competitive battleground.competitive battleground.

Michael DellMichael Dell


12/31

2000

Nokia: A World-Class Brand

What can we learn from Nokia,the worlds 5th most valuable

brand?


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2000

Nokia: strong CEO support

While technology continues to be a keysource of added value, I would like toemphasize that effective marketing and thestrength of the Nokia brand creates an

increasing portion of the added value.

-- Jorma Ollila


15/31

2000

Nokia: Inspiring Vision and Values

Nokia enhances the quality of peoples lives byconnecting people.

Nokia is commited to the future of wire-free

communications in a creative, inspired, humanand accessible way.

The Nokia Way: customer satisfaction, respect for theindividual, achievement, continuous learning


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2000

Nokia: Long-term thinking pays off

1991 decided on one brand: Nokia

1992 established 4 primary goals: telecom-oriented,focused, global and value-added

1993 began serious brand building with long-termglobal commitment:

Downplay technological aspects Emphasize the human role of connecting people

Localize

1996 goal: leadership in the most attractive global

telecom segments 1999 claims 70% of the profit in mobile phone

category


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2000

Branding The HP Way

Within HP, interest in branding is explodingyet fundamentals

of branding are not fully understood throughout HP.

- 1993 Brand Equity Task Force White Paper

Today

Carly Fiorina is challenging employees to rally around the brandand think about product innovation and service delivery in a newway.

There is a mandate from the top that the brand be baked intoevery single piece of communication and into product design.

The concept of invention will be extended into everything we do;its the new mantra for the company.


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2000

A New Approach is Needed: TBM

TBM (Total Brand Management) is tobranding as TQM is to quality.

Brand building is only as powerfulas an organization allows it to be.


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TBM: A Fresh Approach

Branding, like quality, is a vague, complex concept

Brand building, like quality, must be a core business function


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Branding, like quality, needs to be planned, systematic, and

conscientious

Branding, like quality, is part of everybodys job


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Branding, like quality, needs to be planned, systematic, and

conscientious

Branding, like quality, is part of everybodys job

Like quality, its possible and necessary to measure brandingimpact

TBM is about a focus on marketplace results, not process


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2000

Brand Foundation and Direction

Mission Culture Values Commitment/Support

Management andInvestment strategy

Brand SystemBrand Positioning Identity

Brand Strategy and Management

The TBM Framework

Brand Character Integrated planning MeasurementGlobal Mgmt.


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Microsoft Brand Positioning (1994-99)

Desirable to target

audience

Done well by

Microsoft

Not taken/owned

by competitors

Consistent with

market trends

Microsoft leads theway in providing

access to the new

world of thinking

and communicating

Current Products Future ProductsCurrent

ServicesFuture

Services


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Brand Foundation and Direction

Mission Culture Values Commitment/Support

Management andInvestment strategy

Brand SystemBrand Positioning Identity

Brand Implementation and Tactics

Brand Strategy and Management

Target

segments

Budget

allocation

Programs:

internal/external

Messages and

creative expression

The TBM Framework

Brand Character Integrated planning Measurement

Channels of

communications

Global Mgmt.


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2000

TBM Global Branding

Consistency/

Integrity

Relevance/

Flexibility

Global Local

Values/Mission

Positioning

Identity

Marketing mix/budget

Target audiences

Executional messages

Organizational supportCommon practices/policies

Global brand champions


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2000

Brand -ness

Successful brands over time achieve a unique-ness that customers recognize, value and respect.

Consider: Disney-ness, Nike-ness, Sony-ness, Coke-ness, BMW-ness, Marlboro-ness, Swatch-ness...

Brand-ness is dynamic and must be consistentlymanaged to maintain or enhance its state of being.

-ness is the state of, condition or quality of being.


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2000

The Real Goals of Brand Development

The ultimate goal of branding -- makechoices (and life) simpler.

Help make it easier for desirablecustomers to choose your brand overcompetitive offerings.


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2000

The Key to Success: Create a Brand-Centric Culture

The culture of the organization, more than theprocedures or structures, is ultimately what drivesthe attainment of sustainable (brand) advantage.

Prof. David Aaker, Building Strong Brands

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