Download - Brand Management - 1
Brand Management
Managing beliefs and attitudes – the only sustainable competitive
advantage
Basic Care
Beauty Care
Sophisticated Care
Performance Care
Skin Care
The Caviar Collection
Swiss Cellular De-AgersMoisture Care FaceMoisture Care EyesCleansing EssentialsSpecialized SkincareBody CareSoleil SuisseFoundationCellular Treatment Colour and Care for Lips
Cellular Treatment Eye Colour
Cellular Treatment Colour for FaceArt of the Brush
NIVEA VISAGE
NIVEA BEAUTÉ
NIVEA Hair Care
NIVEA Creme
NIVEA soft
NIVEA body
NIVEA SUN
NIVEA FOR MEN
NIVEA Hand
NIVEA deodorant
NIVEA VISAGE VITAL
NIVEA Bath Care
NIVEA Lip Care
NIVEA Baby
NIVEA Intimate Care
Deo Sprays
Deo Roll-on
JUVEDICAL
PERSONAL SKIN COLLECTIONREJUVEN
REJUVEN ulti-maxJUVENANCE
JUVENANCE selectionJUVELIA
BODY
DISCOVER
SWISS BASICS
Sensitive Skin
Dry Skin
Sensitive Facial Skin
Impure Skin
Mature Skin
Sensitive Scalp
Sun Sensitive Skin
Creme
Hand & Nail
Face Care
vital
Body Care
Men
Shower & Bath
Soap & Care
Wellness
ARCTIC
WILD RIVER
Wound Care
Sport
Scar Reduction
External Pain Relief
Foot Care
Insect
Beiersdorf AG: Brand Mix
Product category structure
Drinks
Water Flavoured
Non-alcoholic Alcoholic
Milk Hot JuiceCarbonate Wine Beer Spirit
Cola Non Cola
Cocacola
Sprite
SquashSqueezed
FCNFC
Tropicana
TOP DOWN DECISION MAKING FROM PRODUCT CLASS 1
PRODUCT CATEGORY 2
PRODUCT TYPE 3
BRAND 4
1
2
3
4
Brand positioning
Self medicated wound care for sports related, muscle, and backPain, plus foot care and insect bites. We help to heal
All round care assortment, skin conditions for all the family
The leading dermocosmetic brand recommended by doctors andpharmacists
The brand with Swiss origins, restores the skin to what time hasTaken away
The specialist in high price anti-aging products. Available onlyIn selected specialist outlets
Effective and superior lip care now and in the future
The world’s biggest personal care brand – the mother of all creams since 1911
Long acting, highly effective deodorant in attractive fragrancesFrom trendy to classic
Brand awareness
• The product has an identity which links the brand to a product category and consumption or usage situations
• Depth of brand awareness measures how easily a brand comes to mind (“I have dry skin – what might help?”)
• Breadth of brand awareness measures the different usage situations in which a brand comes to mind (“I have dry skin and burn easily in the sun”)
Product level positioning
perfectly compatiblewith your intimate area. Confidence and well being all day long
Trustworthy andUnderstanding skinCare partner forBabies to ensureHealthyDevelopment rightFrom the start
Cares forThe mostVulnerableSkin youHave – thelips
Efficient face careAnd cleansingProducts adaptedTo the specialNeeds ofMature skin
FormulatedTo optimallyCare for theSkin toOffer theMost caringWay toEffectivedeodorisation
The competentHand care lineTo maintainThe beauty ofThe hands
The advanced mildCaring range whichCovers all male Facial skin careneeds
The safest sun careProtection for theWhole family plusAll the care ofNIVEA
Brings out the Best in your skin.Nivea Body isYour partnerIn skin care It feels like gentle
Summer rain forSoft and suppleskin
The originalMoisturiser forEvery skin typeFor daily use
Precious ingredientsTo protect andCare for your hair
The expertMake up with theSkin careCompetence of NIVEAAnd a passion forColour to Celebrate yourFeminine beauty
Face care whichVisibly enhances yourOwn beauty inHarmony with yourskin
THE MOTHER OF ALL MODERNCREAMS SINCE1911. TODAY NIVEAHAS DEVELOPED INTOA BIG BRAND FAMILY.FOR YEARS NIVEA HASBEEN THE WORLDSBIGGEST PERSONAL CARE BRAND
MASS PREMIUM SUPER PREMIUM
HANDSLIPS
INTIMATE
ANTI-AGING
DEO
SUN
COLOUR
MATURE
BABYBATH
MEN
BODY
SOAP
EVERYDAY
DERMO
WOUNDCARE
florena
NiveaBody
NiveaSoft
Juvena
LaPrairie
Eucerin
Hansaplast
Florena
NiveaLipCare
Labello
Florena
Nivea VisageVital
Juvena
LaPrairie
FlorenaNiveaCreme Juvena
LaPrairie
NiveaVisage
Juvena
LaPrairie
8x4NiveaDeo
NiveaSun
Eucerin
LaPrairie
NiveaIntimate
NiveaBeaute
LaPrairie
Florena
NiveaHand
Florena
NiveaFor Men
Juvena
Florena
NiveaBathCare
NiveaBaby
Skin CareSegmentMap
The Brand Portfolio Model (Riezebos)
BASTIONBRAND
FLANKERBRAND
FIGHTERBRAND
FLANKERBRAND
PRESTIGEBRAND
La Prairie
Juvena
LabelloEucerin
8x4
Florena
NiveaPremium strategyHigh perceivedperformanceMost profitableHighest share andT/OSpecific needs
Can be nicheStrategic importance(eg barrier to entry)
Priced between bastion and discountProtection from own brand/discount brandStrategic rather than financial importance
High quality perceptionHigh psycho social meaningHigh price
BPM rationale
• The essence of the BPM is to use other brands to protect the most profitable brand from competitive attack and customer defection
• Ries and Trout’s “teeter-totter principle”: one and the same brand cannot refer to two different experiences
• The boundary of a brand is determined by the different needs, desires and macro- segmentation variables of the target customer
Advantages of brand types
BRAND TYPE FINANCIAL ADVANTAGE
STRATEGIC ADVANTAGE
Bastion High High
Flanker Low High
Fighter Moderate High
Prestige High Moderate
Based on Riezebos
Brand – Product Matrix
lips Anti-aging n
Labello
Nivea
La Prairien
PRODUCTS
BRANDS
Brand line
Product line
Rows = brand/product relationships ie the number and nature of products soldunder different brands. This is breadth of branding strategy
Columns = product/brand relationships ie the number and nature of brands in eachproduct category. This is depth of branding strategy
Decisions about breadth of branding strategy
• Means decisions about breadth and depth of product mix (how many product lines and how many variants in each line)
• Breadth of product mix concerns attractiveness of product category measured by
AGGREGATE MARKETFACTORS
CATEGORY FACTORS ENVIRONMENTALFACTORS
Market size Threat of new entrants PEST factors
Market growth Bargaining power of buyers
PLC stage Bargaining power of suppliers
Cyclical Current category rivals
Seasonal Product substitutes
Profitability Category capacity
Category attractiveness criteria from Lehmann and Winer
Decisions about depth of branding strategy
• Depth is the number and nature of brands in each product class
• Why does Beiersdorf have multiple brands in the same product category?
• Basic principles of portfolio design (Keller): maximise market coverage so that no consumers are being ignored, minimise brand overlap so that brands aren’t
competing against themselves • Each brand should have a distinct target market and
positioning
The product within the brand
• The product is the primary influence on what consumers experience with a brand, what the firm can tell them about it and what consumers hear from others about the brand (Keller)
• At the heart of a great brand is a great product (Keller)
• For brand loyalty to exist and to grow brand equity consumers’ experiences with the product must meet and/or surpass their expectations (Keller)
• Brand attitude is more dependent on abstract imagery, symbolism and the personality reflected in the brand (Froggett)
• Augmented benefits and intangibles are more important than product performance (Froggett)
• Rarely can consumers articulate expectations of product performance and rarely does perceived quality shape future purchase behaviour (Froggett)
Great products Brand leaders
Product related performance associations
• For brands whose core associations are primarily product related performance attributes innovation in product design and manufacturing are crucial to brand equity (Keller)
• “Good products come from market research, great products come from R&D” Alfred Zeien former Gillette CEO “we increase spending in growth drivers (R&D, plants, equipment, advertising) at least as fast as revenues go up”
• See Gillette and Barbie case studies
Brand Concept Management (Park, Jaworski and MacInnis)
Functional needs – linked to basic motivations (physiological, safety). Solves externally generated consumption needs
Symbolic needs – internally generated needs for self enhancement, role position, social approval. Prestige, fashionability, exclusivity linked to self concept
Experiential needs – sensory pleasure, variety and stimulation
Functional concept
Soothes, calms andProtects sensitiveskin
Symbolic concept
“Advanced shaving”with “UltraglideTechnology”
Experiential conceptChamomile and vitaminsSubtle fragranceFresh and healthy skin
Look beyond product features: innovate across the whole product experience
Goffin et al 2005
Product and experience features fora laptop:
Battery lifeWeight
MemoryProcessor speed
24/7 free tech supportScreen resolution
Extending the brand
“Whether it's eating healthier, de-cluttering your life or changing the way you approach problems, there are lots of things we can all do to make things more comfortable.” Playtex.co.uk
New products and brand extensions
MarketPenetration
Strategy
MarketDevelopment
Strategy
ProductDevelopment
Strategy
DiversificationStrategy
MarketPenetration
Strategy
MarketDevelopment
Strategy
ProductDevelopment
Strategy
DiversificationStrategy
Options for branding the new product?
1. Develop a new brand individually chosen for the new product (Beiersdorf/Labello)
2. Apply an existing brand (Playtex, Branston Beans)3. Combination of existing and new brand (Nivea
Visage),
Brandextension
Types of brand extensions (Keller 2008)
• Line extension: apply the parent brand to a new product that targets a new market segment within an existing product category served by the parent brand (Nivea Visage, Walkers SunBites)
• Category extension: apply the parent brand to enter a different product category (Branston Beans, Playtex Tampons)
Tauber’s brand extension strategies
Same product/different form Mars Bar ice cream
New product containing brand’s distinctive taste or ingredient Bacardi Breezer
Companion products Durabeam torch, Aunt Bessie roast spuds
New product relevant to existing customer franchise
Products that capitalise on the firm’s expertise Honda lawnmower, Canon copiers
Products that reflect the brands distinctive benefit, feature, attribute
Apple iPod
Products that capitalise on the brand’s distinctive image, prestige, positioning
Chanel watches, Adidas tolietries
Brand extension advantages
ADVANTAGEIMPROVE BRAND IMAGE Pre-purchase evaluation based on knowledge of brand and extent to which this is
relevant to new product
REDUCED RISK PERCEPTION
Connection to a well known brand family increases likelihood of consumer trial
INCREASED CHANCE OF RETAIL LISTING
Brand reputation is a key screening criterion for retail buyers
INCREASED PROMOTIONAL EFFICIENCY
Advertising to sales ratios are lower for brand extensions than for new name entries. Existing brand links and associations aid CDP
HALO EFFECT Other brands in family benefit from launch and on-going marketing programmes
AVOID NEW BRANDDEVELOPMENT COSTS
Names, logos, symbols, packaging, slogans are expensive to develop
PACKAGING AND LABELLING EFFECTIVENESS
Greater prominence in retail environment, increased visibility
PERMITS CONSUMER VARIETY SEEKING
Consumers can purchase more product types without leaving the brand family