innotools ip course suceava, 10 april 2008 branding strategies in the forestry sector davide...
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INNOTOOLS IP CourseSuceava, 10 April 2008
Branding strategies in the forestry sector
Davide PettenellaUniversity of Padova - Italy
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Outline
Introduction: 3 innovation types1. Definitions: brand, brand name, logo
2. Brand management3. Branding by SMEs4. The use of forest and wood
images for branding5. Final remarks
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Introduction
A. Absolute new products/services
B. Incremental innovations
C. Subjective differentiation
3 types of innovations in product development:
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A. Absolute new products/services
For wood products:Rough materialSemi-finished productsFinal products
potentials for innovation
Very low
Relatively high
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Laminated Veneer Lumber
Pellets
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Art in the forest: Arte Sella in Italy (www.artesella.it)
Absolute innovations in forest services
are more common
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http://www.promessa.se
http://www.memorialecosystems.com/
“Ecological” burial/funeral
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In Iceland: A lady (employed in a Bank) attended a course on
wood working techniques organised in a forest area Playing with some pieces of hornbeam for testing her
competences she invented this object Some friends liked the object as a Christmas present She started to sell it in a small local shop
Now (after 2 years): 13 Euro 5 minutes for making and painting one She is employed part time in the bank She earns 2500 Euro/month
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Which lessons learned?
Absolute innovation: casual, not easily replicable
Patentable high individual profit, no positive impact on the local community
Non-patentable (very common in the forest sector): no stable sources of income (imitation)
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B. Incremental innovations: improved products and services
Some examples of products:Charcoal with aromatic herbsChestnut flour with pine
seeds and raisins to
prepare, following a traditional recipe, the typical cake
castagnaccio in Italy
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Forest schoolOutdoor school
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Key role in incremental innovations: adding to the normal products some special services
Sorting and grading systemKiln dryingPackagingCertification and (eco)labellingBranding…
Differentiation (Daria’s presentation)
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Example of calibration system and sorting of marrons and chestnuts: calibration through number of fruits in 1 kg of nuts (http://www.conerpo.com)
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Standardization and packaging of Christmas treeshttp://www.kollnitzer-tannenhof.com
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Certification: of processes
Health & Safety OHSAS 18001
: of products
LCA, EU Ecolabel
Fairtrade Transfair
Origins – typical products
Products’quality or
performances
SFM & COCFSC, PEFC
Organic farming
IFOAM, EU rules
Quality Systems ISO 9000
Certification and labelling
Environmental Management
Systems ISO 14001, EMAS
Social Accountability SA8000, AA1000, …
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Examples of certified products: Christmas trees certified by FSC in Switzerland (WWF 2005)
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C. Subjective differentiation
Not a new product or an improved product or services,
but an old product that is presented and perceived as a new one
= Essential role of promotion
branding
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A powerful instrument!
Absolute and incremental innovations without promotion (branding) are often unsuccessful (example: Red Bull)
Developed in 1981 by a Thai businessman, sold as Krating Daeng by a pharmaceutical company; target market: truck drivers, farmers and construction workersBought by the Austrian Dietrich Mateschitz (director of a German toothpaste company); sold in 1987 in Europe for a slightly different target, it became the 1st energy drink in the world
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A powerful instrument!
Absolute and incremental innovations without promotion (branding) are often unsuccessful (example: Red Bull)
With branding (and the information associated to a brand) you can sell a product or a service based on one concept or on its opposite
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Promotion based not on real facts, but on subjective perceptions/believes
“soft like the perfume of
the oak” (?!)
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1. DefinitionsFrom a supply side:
A brand is a name, term, design, symbol, or other feature that distinguishes products and services from competitive offerings (American Marketing Association)
From a demand side:a brand represents the consumers' experience with an organization, product, or service (The Chartered Institute of Marketing)
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Brand: brand name and logo
Brand name = a written or spoken linguistic elements of a brand. Normally a brand name has a trademark registration which allows to protect proprietary rights
UPM-Kymmene
Logo is the graphic element associated to a brand; it may be a symbol, a word or a combination of them
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Brand, brand name and logo
Companies normally associate a brand to a slogan
And sometimes to a mascot, a jingles or a reference product
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Brand name
Logo
Slogan
A reference product
IKEA
““IKEAIKEA furniture, more than life”
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2. Brand management
The role of branding in the marketing mix: the 4 Ps of P. Kotler:
• Product• Price• Promotion (advertising)• Place
a brand associated with a product or service should have certain qualities or characteristics that make it special or unique into the consciousness of consumers.
Products attributes
Products prices
Consumers’ loyalty
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Brands as communication tools A brand may communicate 4 elements; taking a Mercedes car as an example:
• Attributes: “long lasting”, “prestigious, “expensive”
• Advantages: “I will have not to buy a new car for five year if I am travelling in Romania”, “when I meet my clients they perceive me as a well-off partner”
• Values: high performances, safety, prestige• Personality: “if this brand were a person, it
will be a middle age, wealthy businessman” (= target market)
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A good brand name should:
be legally protectable (Coca Cola )be easy to pronounce (Sveaskog ) be easy to remember be and easy to
recognize (Sony )attract attention (Ferrari ) suggest product benefits or suggest
usage (Nike )distinguish the product's positioning
relative to the competition (Bic )
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Types of brands/brandingType Definition
Premium b. A brand for a product typically more expensive than other products in the category
Economy b. A brand targeted to a high price elasticity market segment.
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Mercatone Uno retail company: an economy brand
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Types of brands/brandingType Definition
Premium b. A brand for a product typically more expensive than other products in the category
Economy b. A brand targeted to a high price elasticity market segment.
Fighting b. A brand created specifically to counter a competitive threat
Corporate branding
When a company's name is used as a product brand name
Family branding
When one brand name is used for several related products
Individual branding
When all a company's products are given different brand names
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Types of brands/brandingType Definition
Premium b. A brand for a product typically more expensive than other products in the category.
Economy b. A brand targeted to a high price elasticity market segment.
Fighting b. A brand created specifically to counter a competitive threat.
Corporate branding
When a company's name is used as a product brand name
Family branding
When one brand name is used for several related products
Individual branding
When all a company's products are given different brand names
B. leveraging
When a company uses the brand equity associated with an existing brand name to introduce a new product or product line
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Types of brands/brandingType Definition
Premium b. A brand for a product typically more expensive than other products in the category.
Economy b. A brand targeted to a high price elasticity market segment.
Fighting b. A brand created specifically to counter a competitive threat.
Corporate branding
When a company's name is used as a product brand name
Family branding
When one brand name is used for several related products
Individual branding
When all a company's products are given different brand names
B. leveraging
When a company uses the brand equity associated with an existing brand name to introduce a new product or product line
Private (store) b.
When large retailers buy products in bulk from manufacturers and put their own brand name on them.
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“Private” brands With the emergence of strong
retailers, the retailer's own branded product (“private brands”) emerged as a major factor in the marketplace.
Where the retailer has a particularly strong identity (such as IKEA, Marks & Spencer, Home Depot, …) this private brand may be able to dominate those companies which are not otherwise strongly branded.
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A brand which is widely known in the marketplace acquires brand recognition. When brand recognition builds up to a point where a brand enjoys a critical mass of positive sentiment in the marketplace, it is said to have achieved brand franchise.
Brand recognition
One goal in brand recognition is the identification of a brand without the name of the company present
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NikeNike CBSCBS NBCNBC Bell Bell ChanelChanel
In the wood-value chain the brands
with a large international
recognition are those of the retail
sector
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Best global brands= large concentration in few countries
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3. Branding by SMEs
Branding a small business is essentially the same thing as a larger corporation,
the only difference being that small businesses usually have a smaller market and have less impacts than larger brands.
The real difference is in the potential in funding communication activities
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Branding by SMEs
Co-branding: when two or more brands work together to market their products
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Co-branding and Cause-related marketing: a type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit.
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Branding by SMEs
Co-branding: when two or more brands work together to market their products
Brand licensing: when a company sells the rights to use a brand name to another company for use on a non-competing product or in another geographical area
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The “ecological panel” by the Saviola Group (a particleboard made totally from recycled final used wood products)
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Branding by SMEs
Co-branding: when two or more brands work together to market their products
Brand licensing: when a company sells the rights to use a brand name to another company for use on a non-competing product or in another geographical area
Collective brand (umbrella mark): an homogeneous cluster of companies make use of a common brand
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Development of a common brand
A common brand may be based on: Quality standard A common territory
• A region• A country: national brand
A common business A common objective
Developed by:• Public institutions• Private organization• Partnership
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Brands (ecolabels) defined by public institutions
EU Ecolabel
EMAS Registration of industrial sites
Environmental Product Declaration
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but starting from 2007 compulsory CE mark on wood used in construction in the EU
Normally voluntary brands,
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Common standards: well-managed forests
Examples of collective brandsdefined by private organisations
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“Vero Legno” brand
A collective brand to inform consumers on the real components of the final product (no use of plastic or melanine sheet, but “true wood” veneer sheets)
http://www.verolegno.it/
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MÖBELFAKTA
A reference system for furniture quality determination. The Möbelfakta system has existed in Sweden since the 1970’s but development from 1995-97 has improved its content and appearance as well as adapting it to modern requirements and test methods
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A special territory (e.g.: a National Park)
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Private initiatives
SMEs in Veneto Region – Italy 2,700 companies; 18,400 employees
Industrial Distric Cerea-Bovolone (Bassa veronese)
Industrial Distric (Bassa padovana)
Industrial Distric Bassano del Grappa
Industrial Distric Livenza e del Piave (Treviso e Pordenone)
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4. The use of forest and wood images for branding
(but not so much from companies of the wood-working sector!)
Forest and wood: common and effective images used by a lot of companies in branding
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Source: Laner, 2006
SMEs branding: an old technique!
5. Final remarks
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What is changed from the old times?Which are the causes of success of branding?“We became rich with information, but poor with time”Consumers need clear, simple, quick market signals
The best way to satisfy this need is to match clients’ expectations with an external performance that coincides with the company’s inner culture.
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A transparent behaviour, continuously oriented to improvement, is in the long run the best way to raise the company’s reputation, the brand value and the clients’ loyalty
“Universa Universis Patavina Libertas”