psu - global brand management - alain hutinel 1 part v managing brand offer architecture managing...

PSU - Global Brand Management - Alain Hutinel

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Part VPart V

Managing Brand Offer ArchitectureManaging the Brand in the Global Context


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Managing Brand offer Managing Brand offer ArchitectureArchitecture

Or How to signify at the same time :Or How to signify at the same time :

. a common reference of brand . a common reference of brand offerings offerings

and and

. how they differ from each other. how they differ from each other

andand

. What the Brand stands for. . What the Brand stands for.


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Many different types of Many different types of brandsbrands

B2B B2C Web Trade Local Regional National International Worlwide (meta)

Corporate Commercial Non-business (?)

– Countries – Official bodies– Charity org.– Politics/Polticians– …


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Complex Brand Offer Complex Brand Offer ArchitecturesArchitectures

Jean-Noel KapfererJean-Noel Kapferer

Product Brand : Product Brand : Exclusive name to a single Exclusive name to a single product to assure individual positionning (Tide, Martini ……) product to assure individual positionning (Tide, Martini ……)

Line Brand : Line Brand : Extend a concept across different Extend a concept across different product in segmented market or across similar markets product in segmented market or across similar markets (Renault ….)(Renault ….)

Range Brand : Range Brand : Use same name and promise in Use same name and promise in product categories with same ability (Green Giant …..) product categories with same ability (Green Giant …..)

Umbrella Brand : Umbrella Brand : Support products in different Support products in different

markets with each its own promise, Danonmarkets with each its own promise, Danon Source Brand : Source Brand : Support sub-brand names as Support sub-brand names as

aboveabove

Endorsing Brand :Endorsing Brand : Approve/garanty wide Approve/garanty wide variety of product brands, line and range brands GEvariety of product brands, line and range brands GE

Marque : Endorsing (Corporate) Marque : Endorsing (Corporate) BrandBrand …..


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Brand extension/stretchingBrand extension/stretchingWhy extend ?Why extend ?What is Brand What is Brand

«stretching» ?«stretching» ?Where to extend ?Where to extend ?RisksRisksKeys to successKeys to successFittingFitting… … why NOT extend ? why NOT extend ?


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Why extend brands ?Why extend brands ?

increasing competition between less increasing competition between less & larger players with global & larger players with global aspirations and ability to aspirations and ability to communicate globallycommunicate globally

towards saturation of marketstowards saturation of marketssimilarity of brands’ offers attributessimilarity of brands’ offers attributesdecreasing brand loyaltydecreasing brand loyaltyreact to declining marketsreact to declining marketsnourish the brand perceived vitalitynourish the brand perceived vitality


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What is the brand stretching ?What is the brand stretching ?

It is the transfer of brand values on the new market

It shows that the brand is not related directly to one sector but has values that can transcend different products categories


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«Where” Stretching the «Where” Stretching the BrandBrand

same category : no distance extensionsame category : no distance extensionnew sub-category : short distance new sub-category : short distance

extensionextensionnew category : middle distance new category : middle distance

extensionextensionnew activity : long distance extensionnew activity : long distance extensionGeographic expansion


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Dim Brand stretchingDim Brand stretching

Comfort, liberty


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Low cost in launching Danone Activ Low cost in launching Danone Activ and Taliansand Talians


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Barilla move into biscuitsBarilla move into biscuits

taste, savor, Italian way of cooking


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Swatch move into jewelSwatch move into jewel

Modern, Quality/price, Variety, Innovative design


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Caterpillar moved into shoes and Caterpillar moved into shoes and clothingclothing

reliable, resistant, masculine


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Taillefine move into biscuits and Taillefine move into biscuits and waterwater

Non fat, healthy


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Mars move into ice creamMars move into ice cream

gourmandize, rich, sweet


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Brand stretching risksBrand stretching risks

Distort/Dilute the values of the Brand

Lose the original consumers


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Chevignon brand dilutionChevignon brand dilution

modern, adventurous, exquisite


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Pierre Cardin brand dilutionPierre Cardin brand dilution


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Keys to success in brand Keys to success in brand extensionextension

Brand identity

Brand extension Market’s values

RelevanceFit

Added value


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«Fitting»«Fitting»

Perceived brand «typicality», ie Perceived brand «typicality», ie product categories which «go well» product categories which «go well» with the mother brandwith the mother brand

Emotional agreement with the Emotional agreement with the potential extension product categoriespotential extension product categories

tested transferability of the brand’s tested transferability of the brand’s intangibles and of the brand’s intangibles and of the brand’s «vision», brand’s identity & brand «vision», brand’s identity & brand project. project.


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The success of pen, lighter, The success of pen, lighter, and razors Bicand razors Bic

Accessible, practical, deposable


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The failure of Bic perfumeThe failure of Bic perfume

The Bic values are not relevant to perfume


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This failure did not dilute the This failure did not dilute the brand essence of Bic. Why ?brand essence of Bic. Why ?

Brand identity

Brand extension

Because the Bic perfume was coherent with Bic Brand identity


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Economic evidences of brand Economic evidences of brand extensionsextensions

Higher survival rate of productsHigher survival rate of productsHigher chances of success, due to :Higher chances of success, due to :

. trial rate. trial rate

. conversion rate. conversion rate

. loyalty rate (repurchase). loyalty rate (repurchase)Lower launch costLower launch cost


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Why NOT extend brands ?Why NOT extend brands ?

Unclear/no Brand IdentityUnclear/no Brand IdentityHigh brand switching patternHigh brand switching patternUnwatched Overheads Cost Unwatched Overheads Cost

increaseincreaseNo sufficient resources for success No sufficient resources for success No sufficient “Fit” and RelevanceNo sufficient “Fit” and Relevance……..


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Managing the Brand in the Managing the Brand in the Global Context Global Context

= Cross-Cultural Branding within the Global Business Strategy Game


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Mega Brands 1Mega Brands 1


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Mega Brands ?Mega Brands ?


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International BrandingInternational Branding

What has to be adapted ?Chinese Brands case

How much Brand origin is important ?

American Dream, …. And next ?


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The View from The View from HondaHonda

“We are the most international of the Japanese companies. At the moment we are the most diversified, and we will be more diversified in the future. Still, I think it would be very hard to build a one-type world car. In the end, I don’t think it would be very efficient.”

---Nobuhiko KawamotoPresident and CEO, Honda Motor Company


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The View from The View from ToyotaToyota Our global strategy used to center on “world

cars,” which we would modify slightly to accommodate demand in different markets. Today our focus is shifting to models that we develop and manufacture especially for selected regional markets.

Examples North America: Avalon and Camry coupe and

station wagon. 1997 Sienna minivan. NUMMI Joint Venture: Tacoma light pickup. Europe: Carina E Southeast Asia: Toyota Utility Vehicle (Kijang in

Indonesia, Tamaraw in Philippines)


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- - John F. Welch, JrJohn F. Welch, Jr..Chairman and CEO, General

Electric

"Our vision has been described to you for a decade. We believed that only businesses that were number-one or number-two in their markets could win in the increasingly competitive global arena. Those that could not were to be fixed, closed or sold."


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The Brands the Heroes ?The Brands the Heroes ?


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ValuesExpressions of cultures

Heroes

Rituals

Signs : icons, indexes & Symbols

A value is a broadTendency to prefera certain state of affairs over others

Lifestyles are expressionsof sub-cultures

BRANDS ?


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First Starbucks Location in LondonFirst Starbucks Location in London 9/17/989/17/98


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Some Branding IssuesSome Branding Issues


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Labels and « appellations » ?Retail/trade Brands ?WebBrands potential ?Corporate Brands ?Anti Globalisation ?Non Western Brand cultures ?AntiBrand laws ? Valuation/accounting ?Citizen Brand ?

psu - global brand management - alain hutinel 1 part v managing brand offer architecture managing...

Documents

brand stretching

brand loyalty

brand extensionstretching

martini product brand

martini line brand

corporate brand marque

danon source brand

danon umbrella brand