Strategic Brand ManagementPertemuan 16

Buku 1 Hal: 290-314

Matakuliah : J0504 - Strategi PemasaranTahun : 2009

Bina Nusantara

• Innovation as a Customer Driven Process• New Product Planning• Idea Generation• Screening, Evaluating, and Business Analysis• Product and Process Development• Marketing Strategy and Market Testing• Commercialization• Variation in the Generic New Product Planning

Process

Learning Objective

Relevant issues in PLC analysis include:

• Determining the length and rate of change of the PLC

• Identifying the current PLC stage and selecting the product strategy that corresponds to that stage

• Anticipating threats and finding opportunities for altering and extending the PLC

Product Life Cycle Analysis

BRAND EQUITYCompany/Customer Value

of Brand Name and Symbol of a Product

Determined by the brand’s set of

assets (and liabilities)

Brand Equity

Effective strategic brand management requires that we understand brand equity and evaluate its impact when making brand management decisions:

“Brand equity is a set of brand assets and liability linked to a brand, its name,and symbol, that add to or subtract from the value provided by a product orservice to a firm and/or to that firm’scustomers.*

Measuring Brand Equity. Several measures are needed to capture all relevant aspects of brand equity.**

• loyalty (price premium, satisfaction/loyalty),• perceived quality/leadership measures (perceived

quality, leadership/popularity),• associations/differentiation (perceived value, brand

personality, organizational associations),• awareness (brand awareness), and• market behavior (market share, price and

distribution indices).These components provide the basis for developing

operational measures of brand equity.

BRAND IDENTITY STRATEGYBrand identity is a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organization members.*

Four Brand Identity PerspectivesProduct

Organization

Person

Symbol

SpecificProduct

Lineof

Products

PrivateBranding

CorporateBranding

BRAND FOCUS

CombinationBranding

Strategies for Improving Product Performance

Product lineStrategy

Addnew

product(s)

Costreduction

Productimprovement

Altermarketingstrategy

Eliminatespecific

product(s)

MANAGING THE BRAND PORTFOLIOLeverage

Commonalities to Generate Synergy

Allocate Resources

Reduce Brand

Identity Damage

Facilitate Change and Adaptation

Achieve Clarity of Product Offerings

BRAND PORTFOLIO OBJECTIVES

Strategies for Brand Strength Brand-Building Strategies

– Developing the brand identification strategy– Coordinate identity across the organization

Brand Revitalization– Find new uses for mature brands– Add products related to heritage

Strategic Brand Vulnerabilities– Brand equity can be negative– Retailer private brands compete with manufacturer

brands– Major shifts in consumer tastes– Competitive actions– Unexpected events

Motivation for changing the product mix:• Increase the growth rate of the business• Offer a more complete range of products to

wholesalers and retailers• Gain marketing strength and economies in

distribution, advertising, and personal selling• Leverage an existing brand position• Avoid dependence on one product line or

category

Product Mix Modifications

BRAND EXTENSION

LINE EXTENSION

Extensions of the brand name to other product categories

--Similar

--Dissimilar

Minor variants of a single product are marketed under the same brand name

BRAND LEVERAGING STRATEGY

LINE EXTENSIONS BRAND EXTENSIONS

HorizontalExtension

VerticalExtension

AnotherProductClass

RangeBrand

Co-Branding

Up fromCore

Brand

Down fromCore

Brand

LEVERAGING ALTERNATIVES

BRAND LEVERAGING IN UPSCALE AND VALUE MARKETS

Vertical Brand Extensions*

Core Brand

NewUp-Market

Brand

NewDown-Market Brand

Core Brand

* ONE OF THE MOST DIFFICULT BRAND PORTFOLIO CHALLENGES

MOVING DOWN IS EASY BUT RISKY Affects perceptions of the brand –perhaps even more

significantly than other brand management options.We are influenced more by unfavorable information than by favorable

information. The brand’s ability to deliver self-expressive benefits

may be reduced. Potential cannibalization problem. Potential failure risk.

Problem when the value entry is perceived to be inconsistent with the quality expected from the brand.

MOVING A BRAND UPTHE DRIVERS

•Enhanced Margins at the High End

•Energy & Vitality

•Enhance Credibility and Prestige of the Brand

THE RISKS OF DAMAGING THE CORE BRAND

•Lacks Credibility

•Lacks Self-Expressive Benefits

•Falls Short of Expectations

BRAND EXTENSION DECISIONSExtending into Different Product Classes

THE PROCESS◊Identify product categories for which the product fits and adds value. Determine existing brand associations and the brand identity.◊Identify related product category opportunities Screening should be limited◊Evaluate each category Attractive Growing Good margins Competition Assets/Capabilities◊Select the most promising extension concept◊Develop a viable Brand Strategy

BRAND LEVERAGING EVALUATION CRITERIA

Brand Relevance/Differentiation

Capabilities/Perceived Value Match

Market/Segment Opportunity

Cannibalization Risks

Potential for Core Brand Damage

Clarity of Product Offerings

Estimated Financial Performance

Brand Equity Impact

SEVEN DEADLY SINS OF BRAND MANAGEMENT*

Failure to fully understand the meaning of the brand.Failure to live up to the brand promise.Failure to adequately support the brand.Failure to be patient with the brand.Failure to adequately control the brand.Failure to properly balance consistency and change with the brand.Failure to understand the complexity of brand equity measurement and management.*Kevin Lane Keller, Strategic Brand Management, Prentice Hall, 2003, 736.