04 mm ui july 08 sbm managing brands over time ppr

8/8/2019 04 MM UI July 08 SBM Managing Brands Over Time Ppr

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Daniel Rembeth July 23rd 2008

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Session IV-Strategic Brand Management: Managing

Brands Over Time/Life C cle

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Life stages of a Brand

Launch New/Extension Initial Uptake

Penetration/Growth

Plateauing Rule of three ec ne

Rejuvenation

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Launching New Brands

eep un erstan ng o t e segment

Sources of Value

Customers up close and personal

Understandin the reason - strate for Launch

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A New Brand (Takes time/Money)

Startup/New Company Creating New Category

Key questions:Is this a real Brand

Entering New Category

Step-function value creation

opportunity?

New Brand? erger Acquisition

Baggage: Avoid/RemovalNew Descriptor?

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Startup/New Company: Zyrex, Esia, detik.com Creating New Category: Kaki Tiga, A Mild

Entering New Category: LA Light, Vegeta, Extra Joss

Step-function value creation: Santika Hotel, HU Kontan erger Acquisition: Ban Permata, Ban an iri

Baggage: Avoid/Removal: Star ANTV,

Etc.

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CurrentProducts

NewProducts

New Brand andExisting Brand Combo

MarketPenetrationStrate

ProductDevelopmentStrate

Current

DevelopmentStrategy

Strategy

NewMarkets

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Extensions: Mobilize the equity of the parent brand to gainimmediate resonance with target segment:

Same product, different form New roducts with distinctive brand characteristics

Compare new offering to main brand

Products relevant to parent Capitalize on Firms Brand/competence

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Line Extension: Parent brand used for newroduct that tar ets new se ment in the

category

Category Extension: Parent brand moves into.

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Line ExtensionCategory Extension

Parent

Segments

Category 1 Category 2 Category 3

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ne xtens on: ove nto erent pa nts, me a,textures same/similar POP

Category Extension: Move into canvas,brushes, supplies: places where their

segment might expect the brand to go

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Decrease cost of gaining distribution & trial

Avoid cost (and risk) of developing new names

Permit consumer variety seeking

Bring new customers into the BrandScape

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(Potential) Disadvantages of Extensions

Cannibalize sales of parent brand Hurt the image of the parent brand

e ex ens on a s

Even if the extension is successful

name or market the parent brand differently(opportunity cost)

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Extensions Key Questions

Will the market expect it? Will the market let it go there?

Is the synergy real?

What other questions?

Remember: your segment decides good idea to check it out

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Exam le :

Herita e: Chemistr /Science

Car WaxPaint Construction Food

OEM/Platform

Aftermarket Re-Finish

Protection

A earance

Tyvek

Kevlar

Additives

Packa in

More

????

More More Cheeseburgers?

More ????

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Extension Strate Ste s:

1) Identify customer knowledge & equity

2) Identify candidates3) Evaluate potential- a ence - avora y - n queness

4) Evaluate candidates Compelling relevant Conservative strong

5) Competitive Analysis

7) Evaluate

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Extension Checklist

Potential to create equity

Obvious/non-Obvious

Favorability? Uniqueness?

Attractions? Aversions? Associations?

Impact on Parent:Feedback Effects

Compelling? Relevant?

onsistent Strong?

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Managing Brands Over Time

-

marketing decisions

ny ac on a a rm a es as par o s mar e ng program asthe potential to change consumer knowledge about the brand

T ese c anges in consumer ran now e ge rom currentmarketing activity also will have an indirect effect on the success offuture marketing activities

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ong erm ec s o ar e ng c v es on ran qu y

marketing activity

Brand awareness and brand image

Consumer response to

Changed brand awareness and brand image

Consumer response to

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f Reinforcing Brands

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Customer Based Brand E uitManagement over Life

Decline or

Harvest

Rejuventation

Growth

One view of a Brand Life Cycle

me

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Reinforcing Brand Images

the meaning of the brand to consumers

a pro uc s oes represen a ene s oes supp yWhat needs does it satisfy?

How oes it ma e t ose pro ucts superior? at strong, avora e,and unique brand associations exist in the minds of consumers?

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Brand Reinforcement Strategies

Brand AwarenessWhat products doesthe brand represent?What benefits does it Innovation in product

ons stency n natureand amount of

marketing support

supply?What needs does itsatisfy?

esign, manu acturingand merchandising Continuity in brand

meaning; changes inmarketing tactics

ran e n orcemenStrategies

Brand ImageHow does the brandmake products

Protecting sources ofbrand equity

superior?What strong,favourable & uniquebrand associationsexist in the customers

Relevance in user anduser imagery

Fortifying vs.

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everag ng ranequity


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Reinforcing Brands

Use marketing actions that consistently convey themeaning of the brand to consumers in terms of

Fortif the brand b raisin awareness and buildinfavorable associations - sponsorships, productplacements

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Reinforcing Brands Maintaining Consistency

Market Leadership and Failures

Consistency and Change

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Market Leadership and Failures

Maintaining customers loyalty through associations Adequate marketing support to level with market

expec ancy

Clever pricing strategy

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Consistency of Marketing Support

The most important consideration in brandreinforcing

Brand consistency is critical to maintain the strength

and favourability of brand associations r n ng an commun ca on u ge s ea o Technologic disadvantages or obsolescence Irrelevance

Lac o memora i ity Inadequate marketing support combines with price

increases can be ver dan erous for the brand

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Consistency of Marketing Support

E.g.: Shell Late 1970s

Extremely positive image with consumers

Early 1980s

Caused by drop in ad and marketing support

E.g.: Marlboro ositioning wit use o ow oy eing use consistent y sincethe 1950s

Other example: Kaki Tiga, Dua Kelinci

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Marketing Tactics

Consistency does not mean marketers should not make anychange in the marketing program

Being consistent in managing brand equity may requirenumerous tactica s i ts

The tactics most effective for a particular brand can certainly

differ to create the same desired knowledge structure in the Prices may move up or down Product features may be added or dropped

Brand extensions may be introduce

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Marketing Tactics

However certain key elements of the marketing program need tobe retained and continuity maintained in the brand meaningover time

Often key creative elements are kept constant by many brands E.g.: Pepsodent parents, Close Up girl and boy, Marlboro cowboy

Referred to as Retro branding or retro advertising the tactic is a meansto tie in with past advertising which was a key source of brand equity

Important to see if these old ad elements have an enduring meaning tothe older consumers and are relevant to the younger ones

the elements which make strong contributions to the brandequity and those need to be retained and protected

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The Brand Meaning

Brand Awareness What products does the brand represent?a ene s oes supp y

What needs does it satisfy?

Brand Image How does the brand make products superior?

,

exist in the customers minds?

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The Economist Research

e ran ean ng

Looking for Insight

Id like it if my boss were to see me on the street carrying a copy of The Economist.

Those frightening people who seem to know more than me about any subjectpro a y rea it.

Insi ht:Being seen as an Economist reader may be more valuable to the target than actually

reading it.

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Daniel Rembeth July 23 2008

e n orc ng ran s- ro ec ng ources o Although brands should always look for powerful new sources for

brand equity Those sources of brand equity that already exist should be

preserved and defended E.g.: P&Gs - Cascade automatic dishwashing detergent

C ange o ormu a to re uce costs Drop in product effectiveness Sunlight fights spots better than cascade Levers ad P&G revert to old formula Legally gets levers ad pulled back

E.g.: Cadburys worms issue Factory view in ads ur y sea pac ag ng

E.g.: Indofood and Ajinomoto issues E.g.: KATOM Kacang Garuda vs Dua Kelici

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Leveraging

Easy to leverage successful brand equity Reduced advertising Price premiums Numerous extensions

In the long run failure to fortify the brand will diminish the

brand and weaken brand image .g.: n ones a s cases - o oro a , su s , en oe , an ung

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-Program

Product-Related Associations Non-product-Related Associations

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Product and Non Product Associations

-related performance attributes or benefits, innovation in productdesign, manufacturing and merchandise is especially critical tomaintaining or enhancing brand equity

E.g.: Nano Nano, Indomie, Bogasari flour For brands whose core associations are primarily non-product-

related attributes and symbolic or experiential benefits,re evance n user an usage magery s cr ca E.g.: Coke, Pepsi, Haagen Dasz, aksara, MTV

Due to intangible nature they may be easier to change roug a ver s ng commun ca on e c.

Ill conceived or too frequent repositions can blur the brandimage

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Brand Concept Management

Functional benefits- solve consumer relatedproblems

Symbolic benefits- needs for social approval

or ersonal ex ression bad e brands

Experiential benefits- sensory pleasure, variety

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Concept

Intro Elaboration FortificationClorox - Prob/solve - Pre-wash stain

- Usage - Cleaner and New scents

extension (cotton to synthetics)ase ine - ro so ve - xtensions

Jelly - Extensions - Bath, Dermatology, Baby

multiple use

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Experiential Concepts

Brand Elaboration Fortificationsymbolic

Apple Controlled dist Retail stores

experientia

Lego Accessories Furniture

Aveda Aromatherapy Make-up

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Revitalizing Brands

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Customer Based Brand E uitManagement over Life

Decline/Harvest

Rejuventation

Growth

me

JDROne view of a Brand Life Cycle



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Brand Revitalizing Strategies

Identif additional

Expand depth and

breadth of awarenessand usage of brand

consumption (How

much)

opportunities touse the brand in

the same basicway

Refresh the sources ofbrand equity

Increase frequency ofconsumption (howoften)

Identify new anddifferent ways touse the brand

Brand RevitalisationStrategies

Create new sources ofbrand equity

Retain vulnerablecustomers

Improve strength,favourability &

Recapture lostcustomers

Identify neglected

associations

Neutralise -veassociations

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uniqueness of brandassociations

segments

Attract newcustomers

Create new

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Revitalizing Brands

There are two possible directions brand revitalization

strategies can move in The back to the basics strate

Refresh the sources of brand equity

The reinvention strategy

rea e new sources o ran equ y

Most brands use a combination of both strategies forrevitalization

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Approaches to Brand Revitalization

Expand the depth or breadth of brand awareness, or both byimproving consumer recall and recognition of the brand duringurchase or consum tion settin s

Improve the strength, favorability and uniqueness of brand

associations makin u the brand ima e

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Expanding Brand Awareness

Increasing the depth of brand awareness Increase quantity of consumption (how much)

ncreas ng e rea o ran awareness Increase frequency of consumption (how often)

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Expandingthe Breadth of Brand Awareness

n ng new uses or e ran w awareness ayer sp r n

Reminding consumers to replace products with short lifespan - Oral-B Providing innovative package design Coca Cola Increasing usage Pepso ent si at gigi 2x se ari, Aqua 8 ge as

sehari Increasing the level or quantity of consumption

Increasing the frequency of consumption Identifying new or additional usage opportunities Lifebuoy, Sosro

Communicate appropriateness of more frequent use in current situations Reminders to use

Identifying new and completely different ways to use the brand Indocafe ground coffee, Siemens celular

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Increasingthe Breadth of Awareness

Identify additional opportunities to use the brand inthe same basic way

Some brands are seen as for only specific or special occasions E.g.: Chivas Regal What are you saving your Chivas For?

Gatorade Pocari Sweat drink after s ortin activities

Perceptions and reality of usage differ E. .: Batteries with inbuilt indicators of ower, toothbrushes that

change color, Guinness bir hitam

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Improving Brand Image

Ways of improving the strength, favorability anduniqueness of brand associations

Bolstering fading associations

Neutralizing negative associations

rea ng new assoc a ons

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Improving the Brand Image

equity (e.g., Harley-Davidson macho motorcycle, Finna seafoodbased) pro uct strategy

pricing strategy

channel strategy communication strategy

Create new sources of brand equity (e.g. Mountain Dew, William , , ,

bakery, etc. )

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Improving-Revitalizing Brands

e scover ng an mo z ng t e ran s oots :

Established footprint elements

Expand breadth and depth of awareness of imagery to

the brand

Identifying new usage opportunities; speed up,

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Improving-Revitalizing Brand Image

Retain vulnerable customers & recapture lost

customers Re ositionin the brand

Heritage brands that have around for years but are being seenas boring: Buavita and Ultra Milk new packaging, Marie Regal Sometimes changing consumer tastes can have a fading effect of

, Changing Brand Elements: Federal Express to FedEx, General Electrics toGE

Identif ne lected se ments & attract new customers

Van Heusen advertising in womens magazines Nike and Gillette's women's range of products

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Improving Brand Image

Repositioning with points of difference or points of parity Suzuki

CX, Siemens BQ

Changing brand elements Texas Chicken, Hard Rock caf Jkt

n er ng new mar e s ee en er e a ar a os

Targeting new segments - Brylcreem Power Gel, Nivea teens

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Revitalizing a Mature Old Brands

Case Study: Old Spice

First introduced in 1937 as womens fragrance Mens line came in 1938, dominated by shave soap and lotion

mage eve ope aroun merican o onia t eme

Purchased by P&G in 1990

Logo, packaging and communications were immediately changed to freshened-up

, , ,and body sprays in several scents under the Old Spice brand

In 2006 launched new line of product called OS to attract younger segments

Currently no. 1 in the USA

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Revitalizing a Fading Brand

Because of chan es in the marketin environment brandequity can be eroded over time.

Reversin a brands fortunes involves ... Recapturing lost sources of brand equity

Identifying and establishing new sources of brand equity

More revolutionary changes than evolutionary changes

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Customer Based

ran qu y Management over Life

Decline/Harvest

Rejuventation

GrowthGrowth

me

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One view of a Brand Life Cycle



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Comeback Stories

RCA - went from obsolete TV image to Satellite System withDirecTV; new campaign with Chipper dog logo

Hush Puppies - suede shoes image changed with new designs,ad campaign and Forrest Gumpplacement

adidas - After losing to Nike and Reebok, targeted youngurbans, Rappers and Kobe to make 3 stripes cool again and

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Adjustments to Brand Portfolio

Migration strategies - Levis Dockers (smart casual)

cqu re new cus omers - up mar et , ownmarket)

ew str ut on out ets - Metro Dept. Store (internetsales), adidas (life style store)

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Adjustments to Brand Portfolio

Line extension or sub brands Paramex headache andflu), Tempo media (magazine- Indonesia and English,

newspaper, online- web and blog)

IMC campaigns for each segment Sari Ayu, MustikaRatu (widened segmentation)

Retiring obsolete brands/products Fit n Fun by MBI,Tara Nasiku, Mie & Me, Chatz Mie

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Corporate Name Changes

Reasons why

, Turner Time Warner Turner AOL, PM and Kraft is Altria, HPand Compaq back to HP and Compaq

,AT&T, Bogasari to Indofood Flour

Change of public perceptions Bimantara to Bhakti

Significant Shift in Corporate Strategy NY and NETelco to NYNEX, Salim group to several holdings

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Managing a Brand Crisis

Reasons wh

Lack of past communications and brand building efforts - Exxon , Slow in Responses Ajinomoto, Bank Summa Lack of strategic directions Lion Air, Adam Air, KAI

Strategy

wi tness , n o oo , ippo an rus Pre-empt Sampoerna egg campaign Good governance Riau Pulp, Standard Chartered

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Corporate Responsibilities Astra, Danamon, Unilever



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-

years?

How does Disney expand brand equity through film -movies and-

Are there any sub-brands that Disney should consider retiring?

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Creation of franchise

Ride in Disneys park Movie original, sequel, triquel

Merchandising

Tie in program Pirate Master in AXN Asia

DVD Game

Book, etc.

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Managing Brands Over Time

n vers as n ones a

Its your ome wor to ana yze an present itnext week.

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04 mm ui july 08 sbm managing brands over time ppr

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