Strategic Brand Management

Strategic Brand Management

Overview

What is a Brand?
• A brand is a name, term, sign, symbol or
design, or a combination of them, intended
to identify the goods or services of one seller
or group of sellers and to differentiate them
from those of competitors.
• A global brand is a brand that is
recognised throughout much of the world.

The Top Determinants of Brand
Strength
“I Would Travel Further”
“I Would Pay More”
“I Would Wait Longer”
Customer Loyalty Price Premium

“An increase in customer loyalty of only 5% can lift lifetime profits per customer by as
much as 95%”
“In some sectors, an increase of customer loyalty of just 2% is equivalent to a 10% cost
reduction”
“Over 50% of customers would be willing to pay 20-25% price premium to the brand that
they are most loyal to”
“A 1% increase in brand equity can result in a 1% increase in stock price”
“50% of customers are willing to try a new product from a preferred brand because of the
implied endorsement, credibility and trust.”
“It takes 7 to 10 times the cost and effort to gain a new customer as it does to keep an
existing customer”

What is Brand Management?

Functional Excellence in Firm wide Leadership in
Support of the Brand Stewarding the Brand

Primary Source of Differentiation Primary Source of Differentiation
• Product/service innovation and • Customer experience, in addition to
communication innovation and communication

Purpose of the Brand Purpose of the Brand
• Create or reinforce product • Provide clear set of values along
distinctiveness which to align all enterprise activities
and investments

Source: Corporate Executive Board

Innovative Analysts
Archeologists
Sociologists
Brand Politicians CONSUMER
Champions General Managers CHAMPION
Templar Knights of Equity
Evangelists
Brand Stewards


“You have to maintain and replenish
a brand over time or it will die”

What is a Brand Management?
• Brand Building Begins By
– Understanding & anticipating the needs and
desires of the consumer
– Understanding the key attributes of the
product(s)
• Our Mission is to DISCOVER (rather than
Invent) the brand’s CORE VALUES and
abide by them.

Customer-Based Brand Equity (CBBE)
Model
Can there be Positive or Negative
Brand Equity?
How and Why?
Brand Equity arises from
1 Consumer Response to differences in CONSUMER
Marketing response

What CONSUMERS learned,
2 Brand Knowledge felt, seen, heard, experienced
over time

3 Differential Effect Reflected in CONSUMER
perceptions, preferences, and
behavior related to all aspects
of the marketing of a brand

Effect of Brand Perceptions

Taste Perceptions Taste Perceptions w/
w/Brand Knowledge “Blind” Taste Test

* Heineken * Pure Blonde
* Pure Blonde
* Budweiser
* Heineken
* Coors * Coors
* Guiness * Miller Lite * Guiness

* Miller Lite
* Budweiser

The Key Consumers Must THINK
To Branding Branded products are different

Model


over time

Brand Knowledge
The Key
Creates the differential effect
To EQUITY
that creates Brand Equity.

Consumer Conversion Model
UNAWARE •Longevity
•% Conversion •Market Presence
% •Communication Intrusiveness
NAME AWARENESS
%%
Conversion
•Message Communication
BRAND FAMILIARITY
•Persuasion & Interest
%%
Conversion
•Trial Inducement Promotions
TRIAL
%%
Conversion •Product Performance

ACCEPTANCE
• Benefit Communication/Delivery
%%
Conversion
•Benefit Importance
USAGE

%%Conversion •Uniqueness
•Relevance
REGULAR USAGE •Value
•Loyalty Building Promotions

UNAWARE

NAME AWARENESS 1 Consumer Response to
Marketing
BRAND FAMILIARITY

TRIAL 2 Brand Knowledge
ACCEPTANCE
3 Differential Effect
USAGE

REGULAR USAGE

Brand Vision

BIG HAIRY
VISIONS &
GOALS What are you deeply
• Bad BHAGs Passionate About
set with
bravado,
• Good BHAGS
BHAG
set with
understanding What you Can What Drives
be The Best in Your Economic
the World at Engine

Source: Jim Collins, Good To Great

Branding

• Measuring Brand Share of Market
Unit $$ Unit $$
Sales Sales Share Share
National 120 $270 100% 100%
Brand A 5 15 4.2% 5.6%
Brand B 15 15 12.5% 5.6%
Brand C 3 7 2.5% 2.6%

Brand Unit Shares Brand Dollar Shares

4% 6% 6%
13%
3%
3%

80% 85%

Brand A Brand B Brand C All other Brand A Brand B Brand C All other


Assessing Power Brands

Advantages of Power Brands
• Improved perceptions of • Larger margins
product performance • More inelastic consumer
• Greater loyalty response
• Less vulnerability to • Greater trade cooperation
competitive marketing • Increased marketing
actions communications
• Less vulnerability to crises effectiveness
• Possible licensing
opportunities

Power Brands
• WD-40 has gone
against the grain for
more than half a
century by showing
and telling consumers
that it’s a product that
can do it all
• company’s messages
about its 2000
applications and tips
from helpful friends

Power Brands

• Assessing BRAND POWER

BRAND DEPTH

POWER

BRAND WEIGHT

Source: Interbrand

Power Brands


The influence or dominance
that a brand has over its
category or market (more than
just market share)

BRAND WEIGHT

Source: Interbrand

Power Brands


The stretch or extension that
the brand has achieved in the
past or is likely to achieve in
the future (especially outside its
original category)

Source: Interbrand

Power Brands


The breadth of franchise that
the brand has achieved both in
terms of age spread, consumer
types and international appeal

Source: Interbrand

Power Brands


BRAND DEPTH

The degree of commitment that the
brand has achieved among its
customer base and beyond. The
proximity, the intimacy and the
loyalty felt for the brand.

Source: Interbrand

Brand Vision

To build successful brands while
your competitors turn their
brands into commodities start
with a five-step process
Kevin Clancy, Copernicus, Counter Intuitive

Brand Building
• Kevin Clancy Copernicus’s 5 Step Process

Transform- Model-Based Obsessive
Inspirational Diagnostic
ational Marketing Implement-
Vision Metrics
Strategy Planning ation

Source: Kevin Clancy, Copernicus, Counter Intuitive

Brand Vision
MUST BE:
So big, so bold and so audacious that
expressing it – never mind executing it – has
a transformational effect. You start to
become what you want to be. The dream
and the reality fuse.
Source: Kevin Clancy, Copernicus, Counter Intuitive

i.e. YOU NEED A BIG HAIRY VISION

Brand Vision Checklist
Inspirational & uplifting; it moves people
Exciting; it gets the blood pumping
Aspirational; it is barely attainable
Readable; it is clearly communicated
Unique/special/different
Very specific, not general
Connotes superiority or domination
Bold and brash; it oozes with confidence
Causes people to want to invest in/work for the
company or buy the company’s products
Transformational, revolutionary, not evolutionary

Brand Vision
• Let’s review some published vision
statements
• Assign them a college grade from 0
to 100.


Brand Vision
A beverage company
“We exist to create value for our shareholders
on a long-term basis by building a business
that enhances the company’s trademarks.”

Grade = 63


Brand Vision
A beverage experience company
“To have bigger brand awareness then
Coca-Cola.”

Big Hairy
Audacious Goal

Source: David Sutton, Zyman Marketing

Brand Vision
A motorcycle company
“Yamaha Wo Tsubusa!”


Brand Vision
A technology company
“To eclipse IBM as the #1 technology
company in the world.”

Grade = 91


Brand Vision
A gasoline company
“We will become the dominant brand in the
service station industry and beyond – with
the friendliest, fastest, cleanest stations
everywhere – one of the most admired
brands on the planet.”

Grade = 96


POWER BRANDS
• Allow Consumers to clearly identify and
specify products which genuinely offer
added value.
• Deep respect for the way products fit into
consumer’s lives = “core” of success
• Consumer Relationship = Loyalty
• Social Changes in their favor


Consumer Driven Strategic Branding


Use The Brand Value Chain to determine
Measurement Tactics and Resulting Marketing
Strategies

Value Marketing Customer Market Shareholder
Stages Program Mindset Performance Value
Investment
-Product -Awareness -Price Premiums -Stock Price
-Communication -Associations -Price Elasticity's -P/E Ratio
-Trade -Attitudes -Market Share -Market
-Employee -Attachment -Expansion Success Capitalization
-Other -Activity -Cost Structures
-Profitability

Brand Value Chain & Testing

Use The Brand Value Chain to determine
Measurement Tactics and Resulting Marketing
Strategies

Value Marketing Customer Market Shareholder
Stages Program Mindset Performance Value
Investment

Program Marketplace Investor
Multipliers Quality Conditions Sentiment
-Clarity
-Relevance -Market Dynamics
-Competitive reactions
-Distinctiveness -Growth Panel
-Channel Support
-Consistency -Risk Profile
-Customer size & Profile
-Brand Contributions

Strategic Marketing Process
Measure Brand Equity
Market &
Financial
Competitive
Health
Trends
Analysis & Long Term Business
Marketing
Analysis Consumer
Insights
Mix

SWOTs
Strategy

Strategic Implications & Strategy Development
Core Competencies, External Opportunities
Brand Vision
Brand Strategy
Strategic Role

Establish
Positioning
Concept

Three Year and ANNUAL Objectives
What do I want to Accomplish
Objectives Should be S.M.A.R.T

ANNUAL STRATEGIES
Annual Plan & Execution

How will the objectives be achieved?

Marketing Plan Execution
Market Physical Product
Package
Research

Consumer & Functional Objectives &
Pricing
Retailer Promo Strategies
And Tactical Plan
Public Advertising
Relations
Media

Market &
Financial
Competitive
Analysis & Long Term Strategy

Health
Trends

Business
Analysis Consumer
Marketing Insights
Mix

SWOTs

Brand Vision
Brand Strategy
Strategic Role

Establish
Positioning
Concept

Establish
Positioning
Strategic Marketing Process Concept


ANNUAL STRATEGIES


Package
Research

Consumer & Functional Objectives & Pricing
And Tactical Plan

Public Advertising
Relations
Media

Initial Strategic Planning
Draft TimeLine
• Key Timing
EDLONG STRATEGIC PLAN TIMELINE
Marketing Team Planning 05/19/03 Announce Global Strat Plan
UK Check points UK Check points UK Check points UK Check points UK Check points

2003
KEY ACTION June July August Sept October November

Corp Image
Brandscape
* Group Sorts
* Process/Next Steps
* Litmus to Hedgehog
* Final Image

Positioning Statement
* Hedgehog only
* Hedgehog + 'Scape
* Leadership Approval
Translation
* Corporate Identity
* 2004 Objectives
*Sales force update/intro

Objectives
* Marketing team
* Leadership Team

Strategies/tactics
* Training/Development
* Apply Hedghog to current Roles
* Marketing Team
*Leadership Team
*Other teams

EXECUTION
Product Architecture
* Design Sessions
* Presentation to leadership
* Present Prototype to Sales
* IT application
Pricing Optimization

Advertising Plan
* Advertising Strategy
*Media Strategy
* Agency review
* Creative Application
* Final Creative

Market &
Financial
Competitive
Health
Trends
Analysis & Long Term Business
Marketing
Analysis Consumer
Insights
Mix

SWOTs
Strategy

Brand Vision
Brand Strategy
Strategic Role

Establish
Positioning
Concept


ANNUAL STRATEGIES

Package
Research

Consumer & Functional Objectives &
Pricing
And Tactical Plan
Public Advertising
Relations
Media

Brand Marketing Process
Market &
Financial
Competitive

Health
Trends
Business
Analysis Consumer
Marketing Insights
Mix

SWOTs

Brand Vision
Brand Strategy
Strategic Role

Strategic Marketing
Market Trends Checklist

Market Conditions
•Household Penetration
•Seasonality
•Regionality (CDI/BDI)

Retail Conditions
Volume & Share •Channels of Distribution
•Industry definition & served market •Product Sourcing/availability
•Category Size & growth rates •Importance of the category to the retailer
•Category Segmentation, trends, importance to category •Retailer focus on private label
•Share of market by brand & by segment •Retailer influence over category marketing
activity

Consumer
Conditions Government
•Substitute products Conditions
•Changes in •Regulations & Reqs.
tastes/attitudes/needs •Legislative issues

Strategic Marketing

• Assessing Competitive Trends
Competitor
Identification
•Key direct competitors
• Competitive Scope:
•Regional/National/Global

Advantage

Competitive Strategy
•Overall mission/priorities
•Target Audience
•Brand Turf/Positioning
•Class of Trade (COT) importance

Measuring Brand Equity

SWOT
• Purpose: to guide thinking and help distill the key
issues and opportunities facing the Brand AND the
category
• Can be done in competitive analysis
STRENGTH WEAKNESS
Inherent source of competitive Inherent cause of competitive
advantage within the Brand (of disadvantage within the Brand (of
genuine relevance to the consumer) genuine importance to consumer)

OPPORTUNITY THREAT
Unsatisfied or poorly satisfied need Potential problem from external source
in the marketplace which our which could undermine our Brand’s
competitive position if not addressed.
company can perform profitability

Strategic Marketing

SWOT
category
STRENGTH WEAKNESS
Inherent source of competitive Inherent cause of competitive
advantage within the Brand (of disadvantage within the Brand (of
genuine relevance to the consumer) genuine importance to consumer)

INTERNAL to the brand
Caused by the inherent nature of the Brand or our
management of it

Strategic Marketing

SWOT
category
EXTERNAL to the brand
Markets, competitors, retail, social trends etc.

OPPORTUNITY THREAT
Unsatisfied or poorly satisfied need Potential problem from external source
in the marketplace which our which could undermine our Brand’s
company can perform profitability competitive position if not addressed.

Consumer Insights
“Another way to create new marketing
opportunities is through better
understanding of your customers and
their full array of needs”

Dave Sutton, Zyman Marketing Group

Consumer Insights
In order to improve your consumer understanding:
– Rather than identify consumers, identify WITH them
– Knowledge only gets you halfway there-you need a plan
to put into action
– Know what is in your consumers hearts and minds…as
well as the market research numbers
– Be curious about the world around and human behavior

Dave Sutton, Zyman Marketing Group

• There are MACRO TRENDS that impact each
touch point

Macro Trends

Pre-Purchase Point of Purchase Post Purchase
•Category & •Role of Pricing & •Tasks & Activities WHAT is
Consumer Promotion happening
•Usage & User (Information)
Segmentation
•Role of Packaging Behavior
•Role of Branding & Merchandising
•Product Benefits
•Role of •Role of the Retailer WHY is it
•Product Details happening
Communication
(Understanding)
•Role of Distribution

Consumer Insights
• Centrum Herbals:
– Line of herbal supplements, including Echinnacea,
St John’s Wort…
– Positioned as naturally complete and backed by
the research of Centrum
– Addressed the trend toward herbal remedies, but
recognizes the insight that consumers don’t
always have confidence in the manufacturers of
herbal remedies and can be skeptical about what
they’re buying…
– Did it tie to the brand essence?? Did it work?

Consumer Insights
• Thermasilk:
– A line of shampoos, conditioners and styling
products that actually improves the condition of
hair when activated by heat…
– Positioned as the hair care line for healthy hair (for
heavy stylers/users)
– Addressed the insight that women worry that they
are damaging their hair by styling with heat, but
are unwilling to give up the styling benefits
– Was the insight relevant? Did the product meet
expectations? Did it work?


Consumer Insights
• Facts = “Duh”
• Insights = “AHA”

Brand Value Corresponding to
Brand Hierarchy Pyramid
Very meaningful in
differentiating our Brand but
very difficult to deliver
consistently to our
Central Beliefs & consumers
Core
Values

Expressive Benefits

Features & Easy to deliver and explain
Functional to consumers but also easy to
Attributes imitate

Source: Hierarchy : Timothy D. Ennis, Ennis Associates, Inc.

Brand Value:
Brand Hierarchy Pyramid
Very meaningful in
The emotional beliefs and
differentiating our Brand but
values that consumers feel
very difficult to deliver
are being addressed by our
consistently to our
brand (CENTRAL)
Beliefs & consumers
Core
Values
The functional and emotional
benefits that our
product/services provides to
the consumer
Benefits
(EXPRESSIVE)

Product/Service features Features & Easy to deliver and explain
and/or attributes that must be to consumers but also easy to
addressed (FUNCTIONAL)
Attributes imitate

4 Steps of Brand Building

Consumer Questions Brand Actions

4 WHAT About You Convert Brand Response to create
AND ME? an intense, active loyal relationship

Elicit consumer response to brand
3 WHAT About You? meaning and Id

Firmly establish TOTAL brand
2 WHAT Are You? meaning by strategically linking
associations w/certain properties
1 WHO Are You?
Ensure Identification & association
w/category or need

4 Steps of Brand Building

Consumer Questions Brand Actions

4 WHAT About You Brand Relationships
AND ME?
Brand Responses
3 WHAT About You?
Brand Meaning
2 WHAT Are You?

1 WHO Are You?
Brand Identity

1 Brand Identity (WHO
%
Are You?) •Communication Intrusiveness
NAME AWARENESS
% 2 Brand Meaning
% Conversion
BRAND FAMILIARITY (WHAT Are You?) •Persuasion & Interest
% % Conversion
TRIAL 3 Brand Response
% % Conversion •Product Performance
(WHAT About You?)
ACCEPTANCE
% 4 Brand Relationships
% Conversion
USAGE (WHAT About You
% % Conversion ME?)
AND •Uniqueness
REGULAR USAGE •Relevance
•Value
•Loyalty Building Promotions

Consumer-Based Brand Equity
Pyramid
4 Brand Relationships (WHAT About You
AND ME?)

Consumer-
Brand
Resonance 3 Brand Response (WHAT About You?)

Consumer Consumer
Judgments Feelings 2 Brand Meaning (WHAT Are You?)

Brand Brand
1 Brand Identity (WHO Are You?)
Performance Imagery

Brand Salience

Pyramid

Loyalty 4 Brand Relationships (WHAT About You
Attachment AND ME?)
Resonance Community
Engagement

Quality Warmth, Fun Feelings
Credibility Excitement, 3 Brand Response (WHAT About You?)
Judgments Consideration Security, Social
Superiority Approval,
Self-Respect
Brand Characteristics
Imagery
User Profiles
Performance & Secondary Features Purchase and Usage 2 Brand Meaning (WHAT Are You?)
Product Reliability,
Situations
Durability & Serviceability
Service Effectiveness, Efficiency, Personality & Values
& Empathy History, Heritage, &
Style and Design; Price Experiences 1 Brand Identity (WHO Are You?)
Category Identification
Needs Satisfied

Salience

Pyramid

Consumer- 4 Brand Relationships (WHAT About You
Brand AND ME?)
Resonance

Consumer Consumer 3 Brand Response (WHAT About You?)
Judgments Feelings

Brand Brand 2 Brand Meaning (WHAT Are You?)
Performance Imagery

1 Brand Identity (WHO Are You?)
Brand Salience

Pyramid

4 Intense, Active Loyalty

Consumer-
Brand
Resonance
3 Positive Accessible Reactions

Consumer Consumer
Judgments Feelings
2 Points of Difference

Brand Brand
Performance Imagery
1 Deep Broad Brand Awareness

Brand Salience

Pyramid
THIS is
Where the
Insight 4 Intense, Active Loyalty
Lives Consumer-
Brand
Resonance

3 Positive Accessible Reactions
Consumer Consumer
Judgments Feelings

2 Points of Difference
Brand Brand
Performance Imagery
1 Deep Broad Brand Awareness

Brand Salience

So WHO is Our Target?

A Hedgehog Concept:
•Is not a goal to be the best, What are you deeply
Passionate About
•not a strategy to be the best,
•not an intention to be the best
•not a plan to be the best
•It is AN UNDERSTANDING What you Can What Drives
of what you CAN be the best be The Best in Your
at. the World at Economic
Engine

Source: Jim Collins, Good To Great

So WHO is Our Target?

The consumer that
1) Is most attracted to our essence
2) We understand well
3) That is the most profitable growth
segment to attract


Brand Switching

Branding Brand Dollar Shares

6% 6%
3% Brand Unit Shares

4%
13%

• Measuring Brand Share of Market 85%
3%

Brand Sales Brand
= Share Brand A Brand B Brand C All other

Category Sales 80%

Brand A Brand B Brand C All other

Unit $$ Unit $$
Sales Sales Share Share
National 120 $270 100% 100%
Brand A 5 15 4.2% 5.6%
Brand B 15 15 12.5% 5.6%
Brand C 3 7 2.5% 2.6%

Branding

• Do consumers use more than one product
within a category?
• Do brands gain or lose sales or consumers
from/to other brands?
• Can brands increase consumer consumption
of the category?
• Measuring Brand Switching and Source of
Volume Interpretation

Brand Switching
Period 1 Period 2
Brand Switching
SI Brand Competitors
(+) (-)

Changes in Category
Consumption
SI Brand (# units) Decreases - Increases SI Brand (+/- # units)

SI Brand (# units) Lost/new brand buyers SI Brand (+/- # units)

Competitors (+/- # units)
New/Lost/Infrequent
Category Buyers
SI Brand Bought/Didn’t Buy
Category

Brand Switching

Brand Switching
• The total amount of a brand’s
volume gained from (or lost to)
competitive brands in the
category.

Brand Switching
Category Consumption
• The total amount of a brand’s volume
gained (or lost) due to increased (or
decreased) category consumption among
households that bought the category in
both periods.
• The brand may have been purchased in
one or both periods. Consumption is
driven by either of the following
components:
– Decreases/Increases
– Lost/New Brand Buyers

Brand Switching

Category Consumption Changes
• Decreases/Increases
• Lost/New Brand Buyers

Consumer Changes
• New (or Lost) or Infrequent Buyers

Brand Switching

Decreases/Increases
• Total amount of brand volume lost/gained
due to decreased/increased category
consumption among households that
bought the brand in both Period 1 and
Period 2.

Brand Switching

Lost/New Brand Buyers
• Total amount of the brand’s volume
lost/gained due to decreased/increased
category consumption among households
that bought the category in both Period 1
and Period 2, but bought the brand in
only one Period.

Brand Switching

New (or Lost) or Infrequent Buyers
• The total amount of a brand’s volume
gained (or lost) from buyers who
purchased the category in one period but
not the other.

Brand Switching
Period 1 Period 2
Brand Switching
SI Brand Competitors
(+) (-)

Changes in Category
Consumption
SI Brand (# units) Decreases - Increases SI Brand (+/- # units)

SI Brand (# units) Lost/new brand buyers SI Brand (+/- # units)

Competitors (+/- # units)
New/Lost/Infrequent
Category Buyers Bought/Didn’t Buy
SI Brand Category

Personal Care Issues to address:

• From where is S brand growth coming?
– Determine the sources of volume due to:
• brand switching
• increased/decreased category consumption
• lost/new category buyers

• Did S Product Line contribute to overall category growth?

• What are the switching dynamics between “S” and other leading brands in
the Category?

• With which competitive brands does “S” show the greatest interaction?

• What implications did volume switching and altered category consumption
have on consumer purchase dynamics for “S”?

• What are the sources of volume for the other leading Category brands?
Particularly Key Competitors?

Personal Care Brand Switching
Analysis Parameters
•Brands
-St. Ives -*Lever 2000
-Suave -*Neutrogena
-Soft-soap -Jergens
-Dove -Tone
-*Dial -Zest
-Caress -Aveeno
-Olay -*Calgon
-Private Label -*Healing Garden
-Clairol Herbal Essences -Sarah Michaels
* Denotes brands that will have interaction indices only. Quantified sources of volume will not be provided for
these brands due to coverage and/or trend issues.

•Volume Equivalency = 1 ounce

•Geography
- Total U.S. Food/Drug/Mass (including Wal*Mart)

•Time Periods
-(Pre-period) 52 Weeks ending December 17, 2000
-(Post-period) 52 Weeks ending December 16, 2001

“S” Brand
VOLUME
(Net Volume)
26,268

18,684 Net Volume Gain:
+40.6%

Period One Volume Period Two Volume

SUMMARY OF GAINS: “S” grew 27.3%
versus YAG just
Brand Switching 13.3 through new/
increased
Increases consumption of SI category
11.3
consumption.
Increased
Brand Switching
consumption
New Brand Buyers 13.7 added another
(+25.0)
13.3%.

New Category Buyers 2.3

IRI Multi-Outlet Panel data, 104 weeks ending Dec 16, 2001

“S” Net Volume Gains
(graphically represented as a percentage of total brand growth)

“S” volume growth was spread amongst several different sources.
Switching, increased consumption, and new brand buyers made up the
majority of growth.

New Category
Buyers
Switching to SI
6%
33%

New Brand Buyers
33%

Net Volume Gain:
+40.6%
Increased
Consumption of SI
28%

IRI Multi-Outlet Panel data, 104 weeks ending Dec 16, 2001

“S” Brand
Interaction Index % Net Volume Gains/Losses

56
DOVE 0.6
119
0.4
56
OLAY 0.7
80
0.8
118 SUAVE 0.1
125
2.5
180 CLAIROL HERBAL ESSENCES 3.5
81 1.0
55 NEUTROGENA 0.3
82 0.6
168 JERGENS 0.7
83 0.3
85 HEALING GARDEN 0.2
NA -0.1
NA TONE 0.1
204 -0.6
129 SARAH MICHAELS 0.6
106 1.6

Source: IRI Multi-Outlet Panel, 104 weeks ending Dec 16, 2001

“S” Switching
Volume Losses & Gains Due to Switching

Losses Gains

-440 DOVE 557
-965 1,039
-422 OLAY 560
-548 688
-1,177 SUAVE 1,203
-428 890
-442 HERBAL ESSENCES 1,103
-266 447
-16 NEUTROGENA 67
-432 549
-185 JERGENS 311
-129 180
-12 HEALING GARDEN 57
-21 0
-197 TONE 209
-138 21
-19 SARAH MICHAELS 136
-1,226 1,529

Source: IRI Multi-Outlet Panel, 104 weeks ending Dec 16, 2001

POWER BRANDS
The Key
The Key to the power of the brand and
Is with
It’s Ultimate Value to the Company
The Consumer

BRAND DEPTH

POWER

BRAND WEIGHT

Source: Interbrand


Brand Positioning
Basics

Brand Positioning Basics
“Act of designing the company’s offer
and image so that it occupies a distinct
and valued place in the target
consumer’s minds”

Philip Kotler

Branding
“ Pretty much everything today can be seen in
relation to a love-respect axis. You can plot any
relationship – with a person, with a brand – by
whether it’s based on love or based on respect. It
used to be that a high respect rating would win.
But these days, a high love rating wins. If I don’t
love what you’re offering me, I’m not even
interested.”
- Kevin Roberts, Saatchi and Saatchi

Branding

Love *
Trademark Mark

Trust-Mark

POWER BRANDS

•Attached to Consumers
•Deep respect
for the way products
fit into Consumer’s lives
= “Core” of Success

Brand Equity

• A set of stored values that consumers
associated with a Product/Service.
• These associations add value beyond
the basic product functions due to past
investments in marketing the Brand.

Timothy D. Ennis, Ennis Associates, Inc


• Identifying & Establishing Brand
Positioning/Values
Grow and Sustain Brand Equity

Measure & Interpret Brand
Performance

Plan & Interpret Brand Marketing
Programs

Identify & Establish Brand
Positioning and Values


• Identifying & Establishing Brand
Positioning/Values
Grow and Sustain Brand Equity

Measure & Interpret Brand
Performance

Plan & Interpret Brand Marketing
Programs •Mental Maps
•Competitive Frame of Reference
Identify & Establish Brand •Points of Parity and POD
Positioning and Values •Core Brand Values
•Brand Mantra

What is Brand Positioning?
• Brand Positioning is the act of designing
the company’s offering and image to occupy
a distinctive place in the mind of the target
market.

“A positioning must be…
One, two or three words, phrases or sentences
about your brand that you want to imprint in the
heads of key stakeholders….

Kevin Clancy, Copernicus

“So clear, so succinct, and so powerful
that once launched, it begins to move
people toward your new evolving
brand”

Kevin Clancy, Copernicus


• All about identifying the
optimal place of a brand
and its competitors in the
consumer’s mind Positioning =
The Heart Of
• Maximizing company Marketing
potential benefit Strategy
• The compass that guides
marketing strategy


• THE POSITIONING
STATEMENT DRAWS ON
THE STRONGEST ASSETS Positioning =
OF THE BRAND’S EQUITY The Heart Of
– Clarifies what brand is all about Marketing
– Uniqueness/Point of Difference Strategy
– Why consumers should BUY &
USE (Addresses their needs
better than competition)


• WHO are you going to give
this positioning to?
• WHO are you going to market Positioning =
your product to? The Heart Of
• Are all consumers created Marketing
Strategy
equal?
• WHAT do they want and need
• What CONSUMER INSIGHT
is your positioning based on?


TASK:
Create the most powerful
Positioning you can own and
feel passionately about …. Power
Towards the most profitable Positioning
consumer targets

State the thought you wish
to implant in your target’s
mind:
• TO (core target audience),
(Brand Name),
• IS THE (frame of Power
reference) Positioning
• THAT (owned benefit)
• BECAUSE (support or
reason to believe)

mind:
TO oral health concerned
Power
adults, Listerine IS THE Positioning
only brand of therapeutic
mouthwash THAT kills
germs that cause bad
breath, plaque and
gingivitis.


mind:
TO adults concerned about Power
Positioning
fresh breath, Scope IS
THE brand of cosmetic
mouthwash THAT
prevents morning breath.

Power Positioning
“Where deep understanding of your
brand equity or essence links directly to
a core consumer insight or value”

Soni Simpson, Your Prof

POWER POSITIONING

POWER

Source: Soni Simpson

Power Positioning

Insight Driven Platforms link to Brand Essence
“I want to look and feel sophisticated everyday but without having
to pay salon prices”
Tresemme: Professional Affordable Solutions
“Men’s Hair Needs are Different. I want my hair to look in control
without the fuss”
Consort: Distinctively male hair care that puts you in control.
“I believe Swiss have near perfect skin. I want the secrets to
blemish-free, smooth healthy-looking skin”
St Ives: Discover the Swiss Secrets to Smooth, Radiant Skin
“I like feeling and smelling feminine. Feeling and smelling fresh
and clean are an important part of my daily routine in being
feminine”
FDS: A gentle all day fresh and clean made just for women.

Competitive Map
Product GAP Map
• Expanding Portfolio
– Understanding the business
– Leveraging Brand Essence and Consumer Insights

Sample Competitive Map
“Adult
Sophistication”
Godiva

Rolo
Traditional Innovative

Tootsie Reese’s
Starburst
M&M
Skittles

“Youthful Fun”


Building Brand
Loyalty

Customer-Based Brand Equity
(CBBE) Model

Brand Equity arises from
1 Consumer Response to differences in CONSUMER
Marketing response

over time

3 Differential Effect Reflected in CONSUMER
perceptions, preferences, and
behavior related to all aspects
of the marketing of a brand

Model


over time
Brand Knowledge
The Key Creates the differential effect
To EQUITY that creates Brand Equity.

% •Communication Intrusiveness
NAME AWARENESS
%%
Conversion
BRAND FAMILIARITY
•Persuasion & Interest
%%
Conversion
TRIAL
%%
Conversion •Product Performance

ACCEPTANCE
%%
Conversion
USAGE •Uniqueness
% Conversion
% •Relevance
•Value
REGULAR USAGE •Loyalty Building Promotions

1 Brand Identity (WHO
%
Are You?) •Communication Intrusiveness
NAME AWARENESS
% 2 Brand Meaning
% Conversion
BRAND FAMILIARITY (WHAT Are You?) •Persuasion & Interest
% % Conversion
TRIAL 3 Brand Response
% % Conversion •Product Performance
(WHAT About You?)
ACCEPTANCE
% 4 Brand Relationships
% Conversion
USAGE (WHAT About You •Uniqueness
% % Conversion ME?)
AND •Relevance
•Value
REGULAR USAGE •Loyalty Building Promotions

Nine ways to manage your brand as
an asset

1. Formally link business and brand strategy

2. Create a unique and relevant Brand Identity

3. Create a clear and distinct Positioning

4. Extend your brand strategically

5. Build a strategic Brand Architecture

6. Evaluate and align touch points

7. Consistently deliver on your Brand Contract

8. Practice effective global brand management

9. Set the organization up for success

You are welcome to contact Nigel Bairstow at B2B
Whiteboard your source of B2B Asia / Pacific
marketing advice

http://www.linkedin.com/pub/nigel-bairstow/6/41b/726

http://twitter.com/#!/b2bwhiteboard

www.b2bwhiteboard.com

Strategic Brand Management

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