therakorn yardpaga 3m thailand ltd. “brand management”

Therakorn YardpagaTherakorn Yardpaga

3M Thailand Ltd.3M Thailand Ltd.

““Brand Management”Brand Management”““Brand Management”Brand Management”

What is a Brand ?

What is a Brand?

Name

Term

Sign

Symbo

l

Design

Combination

Identifies product/service

of sellerDifferentiates from

competitors

Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

Brand Recognition

The stage of brand acceptance at which

the consumer knows of a brand, but does

not prefer it to competing brands.

Brand Preference

The stage of brand acceptance at which the

consumer selects one brand over competing

offerings based on previous experience with it.

Brand Insistence

The stage of brand acceptance at which the

consumer refuses to accept alternatives and

searchers extensively for the desired good or

service.

ManufacturerBrand

Kodak, Heinz

ManufacturerBrand

Kodak, Heinz

Private Brand

Kenmore, DieHardCraftman

Private Brand

Kenmore, DieHardCraftman

Family BrandKitchenAid Appliances, Johnsons &

Johnson products

Family BrandKitchenAid Appliances, Johnsons &

Johnson products

Individual BrandLever’s Aim, Close-

Up &Pepsodent Toothpastes

Individual BrandLever’s Aim, Close-

Up &Pepsodent Toothpastes

Generic Products

No name cigarettes

Generic Products

No name cigarettes

Types of Brands

Brand Manager

A marketing professional charged with

planning and implementing marketing

strategies and tactics for a brand.

Brand Name

The part of a brand consisting of words

or letters that form a name to identify

and distinguish a firm’s offerings.

Brand Mark

A symbol or pictorial design

that identifies a product.

Generic Name

A brand name that has become a generally

descriptive term for a class of products.

Trademark

A brand to which the owner

legally claims exclusive use.

Brand Extension

Application of a popular brand name to a

new product in an unrelated product category.

Brand Dilution

A loss in brand equity that results when

a firm introduces too many brand extensions.

Brand Licensing

The practice of allowing other companies to

use a brand name in exchange for a payment.

Co-branding

The practice of combining two strong brands,

perhaps owned by different companies, to

sell a product.

What is Brand Equity ?

Brand EquityBrand Equity

Perceived Brand Quality

BrandAwareness

BrandLoyalty

OtherProprietaryBrand Assets

Brand Associations• Attributes• Benefits• Attitudes

Provides Value to Customerby Enhancing Customer’s:• Interpretation/processing of information• Confidence in the Purchase Decision• Use Satisfaction

Provides Value to Firm by Enhancing:• Efficiency and Effectiveness of Marketing Programs• Brand Loyalty• Prices/margins• Trade Leverage• Competitive Advantage

What is Brand Equity?

Source: Aaker (1991) “Managing Brand Equity”Source: Aaker (1991) “Managing Brand Equity”

Measuring Brand Equity

Indirect Measurement

Measure consumer brand awareness– Use aided and unaided memory measures

Measure Brand image– Use qualitative and quantitative techniques

Useful for identifying the aspects of brand knowledge which potentially cause the response that creates customer-based brand equity


Direct Measurement

Comparative– Assess the effect of consumer perceptions

and preferences on aspects of the marketing program

Holistic– Estimate overall value of the brand

Useful in approximating the possible outcomes and benefits that arise from the response that creates customer-based brand equity


Implement Measurements Conduct Brand Audit

– Brand inventory: access health of brand– Brand exploratory: uncover sources of equity– Brand positioning: improve and leverage equity

Develop Brand Tracking Procedures– Monitor strength, favorability and uniqueness of key brand associations– Track preferences for brand, usage, price sensitivity, etc– Track marketing program’s effect on brand image

Create Brand Equity Management System– Brand equity charter– Brand equity report– Brand overseers


Evaluate current position of brand/productBrand Scorecard

1. The brand excels at delivering the benefits customers truly desire.

2. The brand stays relevant to consumers.

3. The pricing strategy is based on consumers’ perceptions of value.

4. The brand is properly positioned.

5. The brand is consistent.

6. The brand portfolio and hierarchy make sense.

7. The brand makes use of and coordinates a full repertoire of marketing activities to build equity.

8. The brand’s managers understand what the brand means to consumers.

9. The brand is given proper support, and that support is sustained over the long run.

10.The company monitors sources of brand equity.

Source: Kotler, The Brand Report Card, HBR, Jan. 2000

Determining Associations with the Brand Name

Associations withthe Brand Name

Name AssociationsWhat comes to mind when

the following brands are mentioned?

Projective TechniquesJan had just finished eating

the Campbell’s tomatosoup and felt…

Exploring Perceptual DifferencesWhat other brands is it different from and why?

Managing Equity: Capitalizing on the Value of a Brand Name. 1991

Building Brand Equity:Brand Development

Brand Growth Strategies

I. Rejuvenating a Brand II. Brand Extensions

III. Brand Expansion IV. Brand Development

• Find New Uses• Increase Usage• Extend the Brand• Obsolete Existing Product• Augment the Product/Service• Reposition the Brand• Enter New Markets

•

Target new segments

• Add product features, product refinement

• Expand the product line• Develop a new generation product• Develop new products for the same market

New ProductsPresent ProductsP

rese

nt

Mar

kets

New

Mar

kets

•

Target

•

Position

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Marketing Plan

•

Test Market

•

“Lift-Off”

Evaluate the current health of brand

Determine growth objectives of company and

potential product usage growth opportunities

Measure long-term potential impact of

opportunities against current brand equity

Launch into the new market

Re-evaluate brand positioning & impact

Brand Development

1. Segment and 2. Target

Finding the Pain

Estimating the Gain

3. Position

Create the Brand

Communicate the Brand

5. Test Market & 6. “Lift-Off”

Market Testing

Commercialization

4. Marketing Plan Four Ps

Product Development

Brand Development

1. Segment - Find the PainStrategic windows to look for in deciding to

enter a new market:1.A segment of consumers whose needs are not

being satisfied (quality, service, or specialization

needs).

2.A segment not targeted by others.

3.A position or segment held by a weak competitor.

Once an idea is found make sure it meshes

with the company’s corporate vision and core

competencies.

2. TargetEstimate the Gain

1. Factor and Cluster analysis: determine segments.

2. Regression analysis: identify best segment(s) to target.

3. Funnel Model: forecast total market and market segment

shares now and in the future.

4. Mitigate risks such as seasonality and business cycle

5. Additional factors include:

1. Technical/Competence

2. Legal

3. Social

4. Competitive

5. Financial

3. Position

Market Opportunity Analysis

– Deliver one singular benefit

• Define your product in the clearest terms possible

• Define user profiles; aiming toward Love Group

Brand name

– Make a statement with the name

Brand Logo & Symbol

– Logo should be designed to fit both eyes

– Use color opposite to major competitor

3. Position (cont.)

Brand Slogan– Be unique in the consumer’s mind

– Success is the claim to authenticity

– Claim to be the “leader”, not “better”

– Trying to be all things to all people weakens the brand

Brand Tagline & Byline– Tagline: express current functional & emotional

benefits

– Byline: descriptive words to tell consumer where to place the brand

3. Position (cont.)

Brand Creation

– How many brands exist?

– Outline the underlying architecture for the brand name,

byline, tag line, logo, and the brand story.

– Consider trends, profile existing brands and determine

how decisions are made that affect brand choice.

– Include branding in everything from finance to operations

– Test product concept and positioning

3. Position (cont.)

Brand Creation Strategy

– Specify sales and market share and

communication objectives and strategies to

accomplish them

– Specify tactics of specific action to achieve each

strategy

– Develop a timeline and product roadmap

The Brand Position StatementAnswers four questions:

1. Which elements of the brand identity should be part

of the proposition and active communication

program?

2. Who is the target audience - primary and

secondary?

3. What are the communication objectives?

4. What will be the points of advantage?

Aaker, David A. Building Strong Brands. 1996

Brand Position

StrategicBrand

Analysis

Com

petitor Analysis

Self-Analysis

Custo

mer

Ana

lysis

• Brand Image/ Position

• Strengths/vulnerabilities

• Existing Brand Image

• Brand Heritage

• Strengths/Weaknesses

• The brand’s soul

• Links to other brands

• Trends

• Motivations

• Segments

• Unmet Needs


A Brand Image Can:

Augmented Reinforced &Exploited

Diffused, SoftenedOr Deleted

Add associations

Soften restrictiveperceptions

Reinforce imagestrengths

Exploit positivedifferences

Specify what the brand is not

Eliminate images inconsistent with the brand identity


Creating a New Brand Name

Does it make learning the brand easier?

Is it unique and likely to be superior to competitors in

stimulating associations?

Can the brand justify marketing support adequate to

establish the name?


Benefits of Brand

Consistency

Ownership ofIdentity Symbol

Cost Efficiencies

OwnershipOf A

Position

Maytag -- Dependable

Marlboro -- Masculine

Federal Express -- Overnight

Slogan

Jingle

Image

SpokespersonLess Expensive

MoreProductive


4. Marketing Plan

1.Product 1. Variety, Quality, Name, Features, Packaging, Sizes,

Services, Warranties, Returns

2. Usage models and scenarios

2.Pricing1. List price, Discounts, Allowances, Payment period,

Credit terms

3.Placement1. Sales promotions, Advertising, Sales force, Public

relations, Direct marketing

4. Marketing Plan (cont.)

Promotion– PR, radio, print, consumer promotion, sampling,

direct marketing, third-party marketing

– Reach vs. Frequency; National vs Spot markets; Steady vs. Pulsing vs. Seasonal

Product Development– Communicate vision into actual product

– Test within company, with select customers, with consumers

5. Test Markets

Market Testing

– Measure consumer testing by trial, first repeat,

adoption and purchase frequency

Success Metrics

– Achievement of each year’s goals

Support Environment

– The level of service a customer receives affects their

perception of the brand

6. “Lift Off”

1. Have you generated your idea?

2. Have you done research on the target market?

3. Has the brand been created?

4. What is your marketing plan?

5. Has your product tested successfully

in the market?

Rejuvenating A Brand





•

Target new segments




rese

nt

Mar

kets

New

Mar

kets

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Target

•

Position

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Marketing Plan

•

Test Market

•

“Lift-Off”

Rejuvenating the Brand

BrandRejuvenation

David Aaker, Managing Brand Equity

1. Find New Uses

2. Increase Usage

3. Extending the Brand

4. Obsoleting Existing Products

5. Augment the Product/Service

7. Enter New Markets

6. Reposition the Brand

How To Evolve a Brand and Make It More Contemporary

Update Symbols

Update Name

Update Slogans

New Products

• 3M• Mazda• Singha Beer

• Federal Express / FedEx• Kentucky Fried Chicken / KFC• TAC / DTAC

• GE – Electricity / Technology / Progress

•Jell-O Jigglers• Quaker Oat Squares


Conduct market research to see exactly

how consumers use the brand.

Examine competition for applications

1. Find New UsesBrandRejuvenation

Frequency of Use– Reminders– Incentives– Ease or convenience

of use– Occasions– Locations

Level of Use– Reminders– Incentives– Reduce negative

associations with frequent use

– Develop positive associations with frequent use

2. Increase UsageBrandRejuvenation

EFFECTS OF EXTENDING

A BRAND TO A NEW PRODUCT

More GoodThe Extension

Enhances the Brand Name

More UglyNew Brand Name is

Foregone

The UglyThe Brand Name is

Damaged

David Aaker, Managing Brand Equity

GoodBrand Name

Aids the Extension

Bad The Brand Name Fails to Help the

Extension

3. Extending the Brand

BrandRejuvenation

Step 1: Determine brand name associations

Step 2: For each association identify related product categories

Step 3: Select candidate products

The Art of Cannibalism

4. Obsoleting Existing Product

BrandRejuvenation

When you are at the top, you have to have the courage to say, I have to stop investing in this great product and generate a new product that will kill it. If you don’t, some competitor will do it for you.

-Willem Roelandts, Hewlett-Packard

How can you further differentiate your

product with augmentation?

– What can be done better?

– What can be done extra or different?

• Improved packaging

• Upgraded services

5. Augment the Product/Service

BrandRejuvenation

Change common or usual associations

Add value by creating new associations

6. Reposition the BrandBrandRejuvenation

Evaluate segmentation and consumer demographic information

Examine growth opportunities in declining or maturing markets/industries

Find segments that have traditionally not been served

Select a segment where your Brand can add value

7. Enter New MarketsBrandRejuvenation

Improve cost accounting Allocate resources To winnersResearch consumer behaviorApply The logic line testCoordinate marketing across The line Work with channel partnersExpect product-line turnover Manage deletions

Improve Product-line Strategies

Ries, Al. & Trout, Jack. The 22 Immutable Laws of Branding. 1993.

Brand Expansion Strategy





•

Target new segments




rese

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Mar

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New

Mar

kets

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Target

•

Position

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Marketing Plan

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Test Market

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“Lift-Off”

Brand Expansion Strategies

Hedge off competitors

Increase profits, sales and revenues

Increase brand exposure

Lower R&D / marketing expenses than

with completely new product

Economies of scale are greater

The Board told you to grow!

Growing a Brand

Line extensions: existing brand name extended to new sizes or flavors

in the existing product category.

Brand extensions: brand names extended to new product categories.

Multibrands: new brand names introduced in the same product

category

New brands: new brand name for a new category product

Cobrands: brands bearing two or more well-known brand names.

Source: Kotler, Marketing Management, p. 413

Brand “A”

New Brand “C”

Brand “B”

New Product

New Variation on Old Prod.

Brand Extension

New Brand

Multibranding

Cobranding Line Extension

Steps

1. Evaluate the current health of brand/product

2. Determine growth objectives of company and

potential product usage growth opportunities

3. Measure long-term potential impact of

opportunities against current brand equity

4. Launch into the new market

5. Re-evaluate brand positioning & impact

Brand Extension





•

Target new segments




rese

nt

Mar

kets

New

Mar

kets

•

Target

•

Position

•

Marketing Plan

•

Test Market

•

“Lift-Off”

Why Brand Extensions?

Consumers Segmentation

Trade PressureCompetitive IntensityShort Term Gain

Excess CapacityPricing Breadth

Consumer Desires

Poorly Conceived

LimitedMarket

Not Contemporary Obsolete

Current Brand

Marketplace

When Does an Extension Make Sense?

Strong Brand associations provide: • A point of differentiation • An advantage for the extension

The extension helps the core brand by: • Reinforcing the key associations• Avoiding negative associations• Providing name recognition

• The category will not support the resources needed to establish a new name • A new name will not provide a useful set of associations or a platform for future growth


The Extension DecisionGood: If the brand’s association,

perceived quality and awareness/presence help the extension

More Good: If the extension reinforces the associations and awareness of the brand

Bad: If the name does not add value to the extension of even has negative associations

Ugly: If the core brand name is damaged or diluted by the extension, or the brand franchise is cannibalized

More Ugly: If the opportunity to develop another brand name is forgone.


Brand Roles

Brand Roles

Sub brand Roles

•Describe offerings

•Structure & clarify offerings

•Augment/Modify brand identity

•Exploit market opportunities

•Support Extensions

Strategic BrandsEndorser

Driver

Silver Bullets Branded Benefits•Features•Components•Service programs


Sub-brand RolesAdd value by fulfilling one or more of the following tasks:

Sub-brandRoles

Structure &Clarify

Offerings

DescribeOfferings

ExploitMarket

Opportunities

Augment orModify the

Identity

Oral B Tooth & Gum CareHidden Valley Low FatLevi’s Loose

Marriott Hotels• Fairfield• Courtyard• Residence Inn

Smucker’s Simply Fruit

Sure ProstickApple Mac Quadra

Nike Air Jordan

Oatmeal Crisp


Brand Extensions - AdvantagesFacilitate new product acceptanceReduced risk perceived by customersIncrease the probability of gaining distribution and trialIncrease efficiency of promotional expendituresReduce cost of introductory and follow-up marketing programsAvoid cost of developing a new brand Allow for packaging and labeling efficienciesPermit consumer variety-seeking

Provide feedback benefits to the parent brand and companyClarify brand meaningEnhance the parent brand imageBring new customers to the brand franchise and increase market coverage Revitalize the brandPermit subsequent extensions


Brand Extensions - Disadvantages Confuse or frustrate consumers

Retailer resistance

Failure could hurt parent brand image

Cannibalize sales of parent brand

Diminish identification of brand with any one category

Hurt image of parent brand if associations between products conflicts

Dilute brand meaning by spreading brand too thin

Forgo the chance to develop a new brand and lose associated potential opportunities and revenues

Usually does not increase purchases with a category

“Light”, “Clear”, “Fat-free” diminish perception of parent brand


Brand Extension Types

Line Extension: A parent brand is used to brand

a new product that targets a new market segment

within a product category currently served by the

parent brand. Most new products are line extension

Category Extension: A parent brand is used

to enter a different product category from that

currently served by the parent brand.


Horizontal Extension

FITADDEDVALUE

ENHANCEDBRANDEQUITY

•Customers must be comfortable with the brand in the new setting.

•Bases: product associates, ingredient, attribute, application, user imagery, expertise, designer image.

•The brand name alone should help customers articulate why the offering is superior to other brands.

•The brand equity should be enhanced by the brand’s presence the brand’s presence in another context -- not only from increased visibility but also from the associations generated.

Aaker, David A. Brand Leadership. 2000

Vertical Extension

To participate in a large & growing value market

Product vitality & margins

A vertical stretch is particularly tricky because perceived quality is involved and also because the use of sub-brands & endorsed brands needs to be considered.

Risk to brand’s reputation & customer base

Cannibalization

Lack of credibility

Competitor price wars

ADVANTAGES DISADVANTAGES

Aaker, David A. Brand Leadership. 2000

7 Approaches to Brand Extension

Distinctive Taste / Ingredient / Component

Companion Product

Customer Franchise

Expertise

Benefit / Attribute / Feature

Designer or Ethnic Image

Same Product / Different Form Cranberry Juice Cocktail / Dole Frozen Fruit Bars

Arm & Hammer Carpet Deodorizer

Colgate Toothbrushes / Duracell Durabeam Flashlights

Visa Traveler’s Checks / Gerber Baby Clothes

Honda Lawn Mowers

Ivory “mild” shampoo /Sunkist Vitamin C Tablets

Porsche Sunglasses / Ragu Pasta


Brand Extension

Functional Benefits

Prestige

User Type

Symbol

Original Product Class Extension Product ClassSkills/Assets Complementing

*The brand and the extension must share common skill or asset perceptions to be successful

Determining Brand and Extension Fit


How many brands?

Is the brand sufficiently different to merit a new name?

Will a new name really add value?

Will an existing brand be

placed at risk if used on

a new product?

Will the business support

a new brand name?


How to use Brand Extensions

BrandPosition

Subset of identity/Value Proposition• Core of Identity• Points of Leverage• Key Benefits

Actively Communicate• Augment the Image• Reinforce the Image• Diffuse the Image

Create Advantage• Points of Superiority• Points of Parity

Target Audience• Primary• Secondary


What the Brand Name Brings to the Brand Extension

BrandName

QualityAssociations

Awareness /Presence

TrialPurchase

BrandAssociation

H-P, Kraft, GE, FordReputation for Quality

Weight Watcher’s (low calorie)Jeep (adventure)

Jell-O Pudding PopsArm & Hammer Carpet Cleaner

More likely to try establishedBrand names


Why the Brand Name Fails to Help the Extension?

The Name DoesNot Add Value

Negative Attribute

Associations

The NameConfuses

The FitIs Poor

Pillsbury MicrowavePopcorn beat out by

Latecomer Orville Redenbacher

Levi Strauss Tailored Classics /

Bic Perfume

Betty CrockerCookbookChicken

Rolls-Royce Bicycles /Dole Hawaiian Resorts


Expanding Brand Meaning Through Extensions

Brand Original Product

Extension Products

New Brand Meaning

Weight Watchers Fitness Center Low Calorie Foods Weight Loss and Maintenance

Sunkist Oranges Vitamins, Juices Good Health

Crayola Crayons Markets, Paints, Pens, Pencils, Clay

Colorful Crafts for Kids

Aunt Jemima Pancake Mixes Syrups, Frozen Waffles

Breakfast Foods


How to Augment a Brand’s Identity

Adding emotional

benefits

Use of sub brands

ProductExtensions


Problems And Risks From Brand Proliferation

WE

AK

ER

LIN

E L

OG

IC

LOWER B

RAND LOYALTY

UNDEREXPLOITED IDEAS

HID

DE

N C

OS

TSINCREASED C

OSTS

MORE COMPETITOR OPPORTUNITIES

STAGNANT CATEGORY DEMAND

Risks ofBrand

Proliferation


22 Immutable Laws of Branding1. Expansion: The power of a brand is inversely proportional to its scope.2. Contraction: A brand becomes stronger when you narrow its focus.3. Publicity: The birth of a brand is achieved with publicity, not advertising.4. Advertising: Once born, a brand needs advertising to stay healthy.5. Word: A brand should strive to own a word in the mind of the consumer.6. Credentials: The crucial ingredient in the success of any brand is its claim to authenticity (ex. “Coke is it!”)7. Quality: Quality is important, but brands are not built by quality alone. (ex. Is Rolex really better than Timex?)8. Category: A leading brand should promote the category, not the brand.9. Name: In the long run, a brand is nothing more than a name. (Ex. Xerox, Kleenex, etc.)10. Extensions: The easiest way to destroy a brand is to put its name on everything. (Ex. Miller beer)11. Fellowship: In order to build the category, a brand should welcome other brands. (Competition draws attention)12. Generic: One of the fastest routes to failure is giving a brand a generic name. 13. Company: Brands are brands. Companies are companies. There is a difference.14. Subbrands: What branding builds, subbranding can destroy. (Line extensions can kill the value of a brand.)15. Siblings: There is a time and a place to launch a second brand. (Ex. Honda introduced Acura, not “Honda Ultra”)16. Shape: A brand’s logotype should be designed to fit the eyes. Both eyes. (Ex. Arby’s logo is too tall, less effect.)17. Color: A brand should use a color that is the opposite of its major competitor’s. (Ex. Car rental logos)18. Borders: There are no barriers to global branding. A brand should know no borders.19. Consistency: A brand is not built overnight. Success is measured in decades, not years.20. Change: Brands can be changed, but only infrequently and only very carefully.21. Mortality: No brand will live forever. Euthanasia is often the best solution.22. Singularity: The most important aspect of a brand is its single-mindedness. (Ex. What is a Chevrolet?!?)

therakorn yardpaga 3m thailand ltd. “brand management”

Documents

brand manager

popular brand

brand mark

brand dilution

brand recognition

brand preference

brand insistence

brand licensing