B®ANDING™

Session 4Brand strategy,

extensions & activation

Last week

• Brand psychology

• Association ownership

• Neuromarketing

• The smart unconscious

• Marshmellow test

brand strategy

branded house vs.

house of brands

Problem of the brandmanager:

• Different products

• Different type of products

• Different markets

• Different brands

• Different sub brands

• Which product gets which brand?

brandarchitecture

1. BRAND-PRODUCTMATRIX

This matrix gives an overview of all the brands and products of the organization.

In order to get more insight into the product and brand strategy of the organization

Products

1 2 3 N

Brands 1

2

3

N

Products

1 2 3 N

Brands 1 Becelbread

Becel liquid

Becelon bread

Etc.

2 Zwitsalshampoo

ZwitsalBaby tissues

ZwitsalSun cream

Etc.

3 Glorixbleach

GlorixCleaning tissues

GlorixToilet cleaner

Etc.

N Etc. Etc. Etc.

2. BRAND-HIERARCHY

BREADTH

BRAND STRATEGY

DIFFERENT PRODUCTS WITH THE SAME BRAND

Products

1 2 3 N

Brands 1 Becelbread

Becel liquid

Becelon bread

Etc.

2 Zwitsalshampoo

ZwitsalBaby tissues

ZwitsalSun cream

Etc.

3 Glorixbleach

GlorixCleaning tissues

GlorixToilet cleaner

Etc.

N Etc. Etc. Etc.

2. BRAND-HIERARCHY

DEPTH

BRAND STATEGY

DIFFERENT BRANDS

Products

1 2 3 N

Brands 1Becel

Becelbread

Becel liquid

Becelon bread

Etc.

2Zwitsa

l

Zwitsalshampoo

ZwitsalBaby tissues

ZwitsalSun cream

Etc.

3Glorix

Glorixbleach

GlorixCleaning tissues

GlorixToilet cleaner

Etc.

N Etc. Etc. Etc.

brandhierarchy

Many brands in 1 product category

Advantages?

• Market reach (price segments, distribution channels, regions)

• To enlarge visibility in stores and to decrease influence of retailer

• To attract consumers that like variety

• Increasing internal competition

BRAND PORTFOLIO:

the collection of all brands an organization offers within a specific product category

PERFECT BRAND PORTFOLIO:

maximizing the market reach with the number of different

brands without brand cannibalization

BRAND HIERARCHY:

Strategic choices determine the number of brand layers

within an organization

Brand hierarchy

1. Corporate / company brand

2. Family brand (umbrella brand)

3. Individual brand

4. Modifier

Brand hierarchy

1. Corporate / company (Unilever)

2. Family (Unox)

3. Individual (Cup-a-Soup)

4. Modifier (different flavours)

Brand hierarchy

1. Corporate company (Microsoft / MSN)

2. Family (Windows)

3. Individual (Vista, Live)

4. Modifier (Hotmail, Messenger, Search)

Assignment:

Create a brand hierarchy for EA-Games

Brand hierarchy EA-games

• EA

• EA sports

• FIFA

• FIFA 2009, 2010 en 2011street

How can products and brands grow?

Ansoff’s product/ market matrix

• Growth according to the 3 dimensions of Abell’s business definition model

Abell model

Ansoff

What if a new product is invented?

1. A new brand, especially for the new product

2. Using an already existing brand

3. A combination of both

1. A new brand, especially for a new product

1. A new brand, especially for a new product

2. Using an already existing brand

2. Using an already existing brand

brand extentions

• line extensions:

The family brand (umbrella) is used on a new related product group

• category extensions:

The family brand is used for a totally new product category

Line extensions

Category extensions

Advantages for the new product

• Better brand image• Lowering risks for customers • Better distribution, more trial usage• Better use of promotional budget• Lower costs for introduction and follow-up• Lower costs of brand design

Advantages for the family brand

• Clarification of the brand meaning

• A better and innovative image

• New customers and a better market reach

• Revitalizing the family brand

• More extensions possible in the near future (Mac, iphone ipad)

Disadvantages of brand extensions

• Confusing customers• Resistance of the retailers• No succes and image damage (VW Phaeton)• Succes but image damage for the family brand

(Jaguar x-type) • Cannibalization• Decreasing identification with the product

category

Vertical brand extension

• Upward vertical brand extension: The organization tries to position itself in a more exclusive price segment

Vertical brand extension

• Downward vertical brand extension:The organization tries to position itself in a less exclusive price segment

advertisement overload

leads to new ways of

advertising & branding

1850 … Identification branding: Products/services/quality

1950 … Benefit branding: Product benefits/What’s in it for me?

1970 … Symbolic branding: Personality/user image/ lifestyle

1995 … Societal branding: Ethics/contribution to society-------------------------------------------------------------------------------------------

2005 … Experience branding: Consumer experience/ all senses

the evolution of branding

brand activation

examples

• Consumenten op een onverwacht moment aanspreken: IKEA

• Consumenten op een prikkelende manier aanspreken: BMW

Changing consumer

Consumers….… have more power…

…can buy more products…

…can get a lof information… (!!!)

…can easily contact organizations…

…can get in contact with other consumers very easily… (!!!)

To personalize marketing

Experience marketing

One to one marketing

Permission marketing

experience economy:brand activation

“... when a consumer buys an experience, he pays to spend time

enjoying series of memorable events that a company stages – as a theatrical play – to engage him

in a personal way...”

The Experience Economy (Pine & Gilmore, 1999)

goods, services and experiences

goods

services

experiences

organisation 1

services

goods

experiences

organisation 2

experiences

goods

service

organisation 3

Which examples do you have from your every day life?

an exampleCommodity: grower

Goods: manufacturer

Service: coffee corner

Experience: premium coffee shop

Ultimate: Café Florian, Venice

2 cts per cup

5-25 cts per cup

50 cts - € 1 per cup

€ 1 - € 4 per cup

€ 5 - € 10 per cup

progression of economic value

commoditization

commodities

services

goods

experiences

commoditization

commoditization

customization

customization

customization

translation

progression of economic value =toename van economische waarde

customization =maatwerk

commoditization =vereenvoudiging

commodity =grondstof / bulkgoed

experience economy

• to arouse consumers (emotionally)

• customization vs. commoditization

• customers are willing to pay more for experiences non-price-competition

an exampleCommodity:

Goods:

Service:

Experience:

Ultimate:

per movie

per movie

per movie

per movie

per movie

Film,camera,acteurs,actie

DVD, Blu-ray,TV, popcorn

Bioscoop, videotheek, on demand, drive in,

Popcorngeur, 3D, stoelen,

Pandadroom, ladies night, infotainment complex,

brand activation

1. Traditional media 2. New media

Or?brand activation

1. (Brand)paid media

2. (Brand)owned media

3. (Brand)earned Media

brand earned media??

Media

type

Definition Examples The role Benefits Challenges

(Brand)

paid

media

Brand pays to

use channels

•Display ads•Paid search•Sponsorships

Active role in enlarging brand knowledge

•In demand•Immediacy•Control

•Overload•Declining response rates•Poor credibility

(Brand)

owned

media

Channels a brand controls

•Website•Mobile site•Blog•Twitter

Build for longer-term relationship with existing potential customers

•Control•Cost efficiency•Versatility•Niche audiences•Long term

•No guarantees•Not trusted•Takes time to find segments

(Brand)

earned

media

When customers become the channel

•Buzz•Viral•Experience

Listen and respond. Interact. Create. Come alive

•Most credible•Transparent and lives on•Strong ties with customer

•Less control•Can be negative•Hard to measure

so what has changed?

• Permission vs. Interruption

• Creativity vs. Overwhelming

• Extensive segmentation

• Choosing instruments on the fly

examples• commercially

– Magnum Gold– Pasos de los Toros– Madame Tresesti– Adidas– Legoclick– Heineken

• non-commercially – $73,000 bar tab

...a focus on quality of communication, not on

quantity or reach

more focus on impact...

“...a brand is a perfect tool for transferring

information, meanings and feelings through media...”

values

brand

community

“...Kiss has licensed its name to more than 2,000 product

categories, from lunch boxes and comic books to credit

cards and condoms to become nearly a one-billion-dollar

brand..."

“...a b(r)and is a perfect tool for transferring

information, meanings and feelings through media...”

brand

media

community

music

try to work together

give me your brand and you get mine

target group

sub-target group

brand X

band X

values

tokiohotel

community

• young

• creative

• urban

• metro-sexual

values

tokiohotel

community

• young

• creative

• urban

• metro-sexual

a community gives input to the meaning

and value of the brand:

“…if you’re like us, you use brand X…”

a band gives input to the meaning and value

of the brand:

“…if the band srews up, so does the brand…”

THE DIXIE CHICKS

THE DIXIE CHICKSThe Dixie Chicks are a country music group, comprising three women; Martie Maguire, Natalie Maines, and Emily Robison. Together, they have sold over 36 million albums as of May, 2008.

The group formed in 1989 in Dallas, Texas, and was originally composed of four women performing bluegrass and country music, busking and touring the bluegrass festival circuits and small venues for six years, without attracting a major label. After the departure of one bandmate, the replacement of their lead singer, and a slight change in their repertoire, the Dixie Chicks achieved massive country music and pop success, beginning in 1998 with hit songs like "Wide Open Spaces", "Cowboy Take Me Away", and "Long Time Gone". The women became well-known for their independent spirit and outspoken comments on controversial subjects, including politics.

THE DIXIE CHICKS

• “Wide open spaces”

• “Long time gone”

• Lipton

Lipton is one of the world's best known and best-selling brands ofboth hot leaf and ready-to-drink tea. It is currently owned byUnilever. Over the course of acentury, Lipton has become a dominant tea brand in manymarkets. The brand is well-represented in many countriesacross the globe, including the US, Russia, Saudi Arabia,France, Japan, Australia, and Sweden.

Compared to other tea brands, Lipton has always had a strongfocus on innovation, given its continuous launch of both leaf teaand ready to drink tea products. Products target the massmarket and are generally positioned in the middle of the pricespectrum for tea. Due to its size, Lipton is also a dominant playerin tea expertise in the world.

In 1991, Unilever created a first joint venture withPepsiCo, the Pepsi Lipton Partnership, for themarketing of ready to drink (bottled and canned)teas in North America. this was followed by asecond joint venture, Pepsi-Lipton International(PLI) in 2003, covering many non-US markets. PLIwas expanded in September 2007 to include anumber of large European markets. Both PepsiCoand Unilever control 50% of the shares of these joint ventures.

Shut up & sing

• Deel 1

An ad for Lipton Iced Tea that features the Dixie Chicks is temporarily on hold, according to people familiar with the situation. The country music group’s lead singer in March during a concert was made comments critical of President Bush in the days leading up to the country’s war with Iraq.

A spokeswoman for Unilever, which jointly markets Lipton with PepsiCo in the Pepsi-Lipton Tea Partnership, would not comment on why the Dixie Chicks ad is not running but said, “Lipton has a number of different advertising and promotional plans in the works and has opted for now to run the commercials that currently are on air.”

It’s uncertain when or if the ad will run. The ads were to have debuted in May to coincide with the group’s first world tour in three years. Three current 30-second spots, which focus on getting back to a healthy way of living, started running in May in the slots designated for the Dixie Chicks ad, according to one person familiar with the situation. The person said the ads were rushed into production after comments made by Natalie Maines, the group’s lead singer, caused a furor among some country music fans.

uitleg werkvorm

• kies uit de volgende categorie telkens 1 onderdeel: – 1. music brands– 2. community– 3. values– 4. corporate brands

• maak koppelingen tussen de 4 entiteiten door middel van het volgende model

• onderbouw de keuzes die je maakt

questions? /comments

thank you!