session 4, brand strategy, extensions & activation 2013 - 2014
TRANSCRIPT
B®ANDING™
Session 4Brand strategy,
extensions & activation
Last week
• Brand psychology
• Association ownership
• Neuromarketing
• The smart unconscious
• Marshmellow test
brand strategy
branded house vs.
house of brands
Problem of the brandmanager:
• Different products
• Different type of products
• Different markets
• Different brands
• Different sub brands
• Which product gets which brand?
brandarchitecture
1. BRAND-PRODUCTMATRIX
This matrix gives an overview of all the brands and products of the organization.
In order to get more insight into the product and brand strategy of the organization
Products
1 2 3 N
Brands 1
2
3
N
Products
1 2 3 N
Brands 1 Becelbread
Becel liquid
Becelon bread
Etc.
2 Zwitsalshampoo
ZwitsalBaby tissues
ZwitsalSun cream
Etc.
3 Glorixbleach
GlorixCleaning tissues
GlorixToilet cleaner
Etc.
N Etc. Etc. Etc.
2. BRAND-HIERARCHY
BREADTH
BRAND STRATEGY
DIFFERENT PRODUCTS WITH THE SAME BRAND
Products
1 2 3 N
Brands 1 Becelbread
Becel liquid
Becelon bread
Etc.
2 Zwitsalshampoo
ZwitsalBaby tissues
ZwitsalSun cream
Etc.
3 Glorixbleach
GlorixCleaning tissues
GlorixToilet cleaner
Etc.
N Etc. Etc. Etc.
2. BRAND-HIERARCHY
DEPTH
BRAND STATEGY
DIFFERENT BRANDS
Products
1 2 3 N
Brands 1Becel
Becelbread
Becel liquid
Becelon bread
Etc.
2Zwitsa
l
Zwitsalshampoo
ZwitsalBaby tissues
ZwitsalSun cream
Etc.
3Glorix
Glorixbleach
GlorixCleaning tissues
GlorixToilet cleaner
Etc.
N Etc. Etc. Etc.
brandhierarchy
Many brands in 1 product category
Advantages?
• Market reach (price segments, distribution channels, regions)
• To enlarge visibility in stores and to decrease influence of retailer
• To attract consumers that like variety
• Increasing internal competition
BRAND PORTFOLIO:
the collection of all brands an organization offers within a specific product category
PERFECT BRAND PORTFOLIO:
maximizing the market reach with the number of different
brands without brand cannibalization
BRAND HIERARCHY:
Strategic choices determine the number of brand layers
within an organization
Brand hierarchy
1. Corporate / company brand
2. Family brand (umbrella brand)
3. Individual brand
4. Modifier
Brand hierarchy
1. Corporate / company (Unilever)
2. Family (Unox)
3. Individual (Cup-a-Soup)
4. Modifier (different flavours)
Brand hierarchy
1. Corporate company (Microsoft / MSN)
2. Family (Windows)
3. Individual (Vista, Live)
4. Modifier (Hotmail, Messenger, Search)
Assignment:
Create a brand hierarchy for EA-Games
Brand hierarchy EA-games
• EA
• EA sports
• FIFA
• FIFA 2009, 2010 en 2011street
How can products and brands grow?
Ansoff’s product/ market matrix
• Growth according to the 3 dimensions of Abell’s business definition model
Abell model
Ansoff
What if a new product is invented?
1. A new brand, especially for the new product
2. Using an already existing brand
3. A combination of both
1. A new brand, especially for a new product
1. A new brand, especially for a new product
2. Using an already existing brand
2. Using an already existing brand
brand extentions
• line extensions:
The family brand (umbrella) is used on a new related product group
• category extensions:
The family brand is used for a totally new product category
Line extensions
Category extensions
Advantages for the new product
• Better brand image• Lowering risks for customers • Better distribution, more trial usage• Better use of promotional budget• Lower costs for introduction and follow-up• Lower costs of brand design
Advantages for the family brand
• Clarification of the brand meaning
• A better and innovative image
• New customers and a better market reach
• Revitalizing the family brand
• More extensions possible in the near future (Mac, iphone ipad)
Disadvantages of brand extensions
• Confusing customers• Resistance of the retailers• No succes and image damage (VW Phaeton)• Succes but image damage for the family brand
(Jaguar x-type) • Cannibalization• Decreasing identification with the product
category
Vertical brand extension
• Upward vertical brand extension: The organization tries to position itself in a more exclusive price segment
Vertical brand extension
• Downward vertical brand extension:The organization tries to position itself in a less exclusive price segment
advertisement overload
leads to new ways of
advertising & branding
1850 … Identification branding: Products/services/quality
1950 … Benefit branding: Product benefits/What’s in it for me?
1970 … Symbolic branding: Personality/user image/ lifestyle
1995 … Societal branding: Ethics/contribution to society-------------------------------------------------------------------------------------------
2005 … Experience branding: Consumer experience/ all senses
the evolution of branding
brand activation
examples
• Consumenten op een onverwacht moment aanspreken: IKEA
• Consumenten op een prikkelende manier aanspreken: BMW
Changing consumer
Consumers….… have more power…
…can buy more products…
…can get a lof information… (!!!)
…can easily contact organizations…
…can get in contact with other consumers very easily… (!!!)
To personalize marketing
Experience marketing
One to one marketing
Permission marketing
experience economy:brand activation
“... when a consumer buys an experience, he pays to spend time
enjoying series of memorable events that a company stages – as a theatrical play – to engage him
in a personal way...”
The Experience Economy (Pine & Gilmore, 1999)
goods, services and experiences
goods
services
experiences
organisation 1
services
goods
experiences
organisation 2
experiences
goods
service
organisation 3
Which examples do you have from your every day life?
an exampleCommodity: grower
Goods: manufacturer
Service: coffee corner
Experience: premium coffee shop
Ultimate: Café Florian, Venice
2 cts per cup
5-25 cts per cup
50 cts - € 1 per cup
€ 1 - € 4 per cup
€ 5 - € 10 per cup
progression of economic value
commoditization
commodities
services
goods
experiences
commoditization
commoditization
customization
customization
customization
translation
progression of economic value =toename van economische waarde
customization =maatwerk
commoditization =vereenvoudiging
commodity =grondstof / bulkgoed
experience economy
• to arouse consumers (emotionally)
• customization vs. commoditization
• customers are willing to pay more for experiences non-price-competition
an exampleCommodity:
Goods:
Service:
Experience:
Ultimate:
per movie
per movie
per movie
per movie
per movie
Film,camera,acteurs,actie
DVD, Blu-ray,TV, popcorn
Bioscoop, videotheek, on demand, drive in,
Popcorngeur, 3D, stoelen,
Pandadroom, ladies night, infotainment complex,
brand activation
1. Traditional media 2. New media
Or?brand activation
1. (Brand)paid media
2. (Brand)owned media
3. (Brand)earned Media
brand earned media??
Media
type
Definition Examples The role Benefits Challenges
(Brand)
paid
media
Brand pays to
use channels
•Display ads•Paid search•Sponsorships
Active role in enlarging brand knowledge
•In demand•Immediacy•Control
•Overload•Declining response rates•Poor credibility
(Brand)
owned
media
Channels a brand controls
•Website•Mobile site•Blog•Twitter
Build for longer-term relationship with existing potential customers
•Control•Cost efficiency•Versatility•Niche audiences•Long term
•No guarantees•Not trusted•Takes time to find segments
(Brand)
earned
media
When customers become the channel
•Buzz•Viral•Experience
Listen and respond. Interact. Create. Come alive
•Most credible•Transparent and lives on•Strong ties with customer
•Less control•Can be negative•Hard to measure
so what has changed?
• Permission vs. Interruption
• Creativity vs. Overwhelming
• Extensive segmentation
• Choosing instruments on the fly
examples• commercially
– Magnum Gold– Pasos de los Toros– Madame Tresesti– Adidas– Legoclick– Heineken
• non-commercially – $73,000 bar tab
...a focus on quality of communication, not on
quantity or reach
more focus on impact...
“...a brand is a perfect tool for transferring
information, meanings and feelings through media...”
values
brand
community
“...Kiss has licensed its name to more than 2,000 product
categories, from lunch boxes and comic books to credit
cards and condoms to become nearly a one-billion-dollar
brand..."
“...a b(r)and is a perfect tool for transferring
information, meanings and feelings through media...”
brand
media
community
music
try to work together
give me your brand and you get mine
target group
sub-target group
brand X
band X
values
tokiohotel
community
• young
• creative
• urban
• metro-sexual
values
tokiohotel
community
• young
• creative
• urban
• metro-sexual
a community gives input to the meaning
and value of the brand:
“…if you’re like us, you use brand X…”
a band gives input to the meaning and value
of the brand:
“…if the band srews up, so does the brand…”
THE DIXIE CHICKS
THE DIXIE CHICKSThe Dixie Chicks are a country music group, comprising three women; Martie Maguire, Natalie Maines, and Emily Robison. Together, they have sold over 36 million albums as of May, 2008.
The group formed in 1989 in Dallas, Texas, and was originally composed of four women performing bluegrass and country music, busking and touring the bluegrass festival circuits and small venues for six years, without attracting a major label. After the departure of one bandmate, the replacement of their lead singer, and a slight change in their repertoire, the Dixie Chicks achieved massive country music and pop success, beginning in 1998 with hit songs like "Wide Open Spaces", "Cowboy Take Me Away", and "Long Time Gone". The women became well-known for their independent spirit and outspoken comments on controversial subjects, including politics.
THE DIXIE CHICKS
• “Wide open spaces”
• “Long time gone”
• Lipton
Lipton is one of the world's best known and best-selling brands ofboth hot leaf and ready-to-drink tea. It is currently owned byUnilever. Over the course of acentury, Lipton has become a dominant tea brand in manymarkets. The brand is well-represented in many countriesacross the globe, including the US, Russia, Saudi Arabia,France, Japan, Australia, and Sweden.
Compared to other tea brands, Lipton has always had a strongfocus on innovation, given its continuous launch of both leaf teaand ready to drink tea products. Products target the massmarket and are generally positioned in the middle of the pricespectrum for tea. Due to its size, Lipton is also a dominant playerin tea expertise in the world.
In 1991, Unilever created a first joint venture withPepsiCo, the Pepsi Lipton Partnership, for themarketing of ready to drink (bottled and canned)teas in North America. this was followed by asecond joint venture, Pepsi-Lipton International(PLI) in 2003, covering many non-US markets. PLIwas expanded in September 2007 to include anumber of large European markets. Both PepsiCoand Unilever control 50% of the shares of these joint ventures.
Shut up & sing
• Deel 1
An ad for Lipton Iced Tea that features the Dixie Chicks is temporarily on hold, according to people familiar with the situation. The country music group’s lead singer in March during a concert was made comments critical of President Bush in the days leading up to the country’s war with Iraq.
A spokeswoman for Unilever, which jointly markets Lipton with PepsiCo in the Pepsi-Lipton Tea Partnership, would not comment on why the Dixie Chicks ad is not running but said, “Lipton has a number of different advertising and promotional plans in the works and has opted for now to run the commercials that currently are on air.”
It’s uncertain when or if the ad will run. The ads were to have debuted in May to coincide with the group’s first world tour in three years. Three current 30-second spots, which focus on getting back to a healthy way of living, started running in May in the slots designated for the Dixie Chicks ad, according to one person familiar with the situation. The person said the ads were rushed into production after comments made by Natalie Maines, the group’s lead singer, caused a furor among some country music fans.
uitleg werkvorm
• kies uit de volgende categorie telkens 1 onderdeel: – 1. music brands– 2. community– 3. values– 4. corporate brands
• maak koppelingen tussen de 4 entiteiten door middel van het volgende model
• onderbouw de keuzes die je maakt
questions? /comments
thank you!