planning 1 - branding

8/9/2019 Planning 1 - Branding

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CHAPTERSEVENTEEN

Strategic Launch Planning 1

Branding

March 13, 2007


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The Value of a Strong Brand

Brand equity has just as much

effecton stock price as do earnings.

DavidAaker

Professor of Marketing, EmeritusUniversityof California, Berkeley


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What is a Brand?

A product is something that is made in a factory; abrand is something that is bought by a customer. Aproduct can be copied by a competitor, a brand is

unique. A product can be quickly outdated; asuccessful brand is timeless.

Source: Stephen King, WPP Group, London

A brand is something that resides in the minds ofconsumer.

A brand is a name, term, sign, symbol, or design, ora combination of them intended to identify the goodsand services of one seller or group of sellers and to

differentiate them from those of competition. Source: American Marketing Association


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WhatisaBrand?

Name

Design

Identifiesproduct/service

of seller and

differentiates from

competitors

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


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Benefits of Brands

Consumers

Identification of the source of product

Assignment of responsibility to product maker

Risk reducer

Search cost reducer

Promise, bond, or pact with maker of product Symbolic device

Signal of quality


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Benefits of Brands (cont.) Manufacturers

Means of identification to simplify handling or

tracing Means of legally protecting unique features

Signal of quality level to satisfied customers

Means of endowing products with unique

associations Source of competitive advantage

Source of financial returns


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ABrand is More Than a Product

Product

Scope

Attributes

Uses

Quality/value

Functional

benefits

Organizational

associations

Brand

Personality

Symbols

Self-

expressive

benefitsEmotional

benefits

User

Imagery

Country oforigin

Brand

Brand/customer

relationships


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What is Brand Equity?

What distinguishes a brand from its unbranded

commodity counterpart and gives it equity is the sumtotal of consumers perceptions and feelings about

the products attributes and how they perform, about

the brand name and what it stands for, and about the

company associated with the brand.

Source: Alvin A. Achenbaum, The Mismanagement of Brand Equity, 1993


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Brand Equity as a Percent of Firm

Tangible AssetsIndustry Brand Equity

Apparel 61

Tobacco 46Food Products 37

Chemicals 34

Electric machinery 22Transportation 20

Primary metals 01


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Picking Stocks

Suppose that you will be given 0.1 percent of thestock on one of the following companies. Which

firms stock would you prefer, given the followinginformation?

General Motors $166B $229B $7B

Coca-Cola $19B $17B $4B

Sales Assets Profits


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Brand EquityBrand Equity

PerceivedBrand Quality

BrandAwareness Brand Name

Symbols

BrandLoyalty

OtherProprietaryBrand AssetsPatentsTrademarksChannel relationships

BrandAssociations Personality Benefits Attitudes

Provides Value to Customerby Enhancing: 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

Brand extensions

Trade Leverage

Competitive Advantage

What is Brand Equity?

Source: Aaker (1991) Managing Brand EquitySource: Aaker (1991) Managing Brand Equity


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Dimensions of Brand

Personality


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Brand personality

Describe the personality of thefollowing:

Arizona Iced Tea

Intel

Blockbuster Video Wal-Mart

Toyota

Dr. Pepper

Aquafina

Seiko

Texas Instruments

Nord

strom

s


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Brand personalityWhat personality characteristics come to mind for the

following:

Brand is repositioned several times or changes itsslogan repeatedly

Brand uses continuing character in its advertising

Brand charges a high price and uses exclusivedistribution

Brand frequently available on deal

Brand offers many line extensions

Brand sponsorsshow on PBS or uses recycled materials Brand features easy-to-use packaging or speaks at

consumers level in advertising

Brand offersseasonal clearance sale

Brand offers five-year warranty or free customer hot

line


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Brand Equity

Sources of Brand Knowledge

Brand Awareness

Brand Image

Strength of Brand Associations

Favorability of Brand Associations

Uniquene

ssof Brand

Association

s


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Why Extend a Brand?

Immediate brand awareness

Transfer exi

sting a

ssociation

s

Faster trial

Reinforce core brand


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Why Not Extend a Brand?

Boomerang potential

Dilution

Bad fit


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Questions and Guidelines in

Brand Name SelectionQuestion Guideline

What is the brand's role or purpose? If the brand is to aid in positioning, choose a brandname with meaning (DieHard, Holiday Inn). If

purely for identification, aneologism (made-upword) such as Kodak or Exxon will work.

Will this product be a bridgehead to a line ofproducts?

If so, choose carefully so as not to be a limitation inthe future (Western Hotels changed name toWestern International, then finally to Westin.)

Do you expect a long-term position in the market? If not, a dramatic, novelty name might be useful

(such as Screaming Yellow Zonkers).

Is the name irritating or insulting to any marketsegment?

Women found Bic's Fannyhose to be objectionable.

Figure 17.8


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Crapsy Fruit French cereal

Fduhy Sesane China Airlines snack food

Mukk Italian yogurt

Pschitt French lemonade

Atum Bom Portuguese tuna

Happy End German toilet paper

Pocari Sweat Japanese sport drink

Zit German lemonade

Creap Japanese coffee creamer

I'm Dripper Japanese instant coffeePolio Czech laundry detergent

Sit & Smile Thai toilet paper

Barf Iranian laundry detergent

Some Brand Names That Didnt WorkFigure 17-9


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How Brand Equity Provides Value

High

Brand

Loyalty

Other Brand

Assets

More/Better

Brand

Associations

High

Perceived

Quality

High

Brand

Awareness

Reduced

marketingcosts

Increased

trade

leverage

Patents or

trademarks

Strong

channel

relationships

Creates

positiveimage

Helps

customer

processinformation

Supports

qualitypositioning

Supports

higher-price

strategy

Easier to

makebrand

associations

Increased

liking andfamiliarity

Provides value to customer:Assists in customer information processing

Increases confidence in purchase

Increases satisfaction in product use

Provides value to firm:Increases effectiveness of marketing programs

Increases customer loyalty and trade leverage

Facilitates brand extensions

Is a source of competitive advantage


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Building Brand Equity

Getting awareness of the brand and themeaning.

Making brand associations -- even thefactory location in Saturns case.

Building perceived quality

Loyalty in repurchase -- locking them in

Getting reseller support

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