To Brand or Not to Brand?

Concepts and Rules for Building the Killer BrandChapter 11

Some Important Concepts…

• Brand Name: The part of a brand that can be spoken including letters, words and numbers.

• Brand Mark: The elements of a brand that cannot be spoken

• Brand Equity: The value of company and brands names.

• Master Brand: A brand so dominant that it comes to mind immediately when a product category, use, attributes or benefit is mentioned.

A look at Master BrandsA look at Master Brands

Baking Soda Baking Soda

Adhesive BandagesAdhesive Bandages

RumRum

GelatinGelatin

SoupSoup

Cream CheeseCream Cheese

CrayonsCrayons

Petroleum Jelly Petroleum Jelly

Arm & Hammer Arm & Hammer

Band-AidBand-Aid

BacardiBacardi

Jell-OJell-O

Campbell’sCampbell’s

PhiladelphiaPhiladelphia

CrayolaCrayola

Vaseline Vaseline

Brand Mark

Logo/Name

So what is it exactly…

• Attributes, benefits, values, culture, personality and user

• Research techniques: word associations, personifying the brand, laddering up the brand essence

Benefits of Branding• Branding distinguishes products from

competition

• Product Identification

• Aids in repeat sales

• Aids in new product sales

• Aids in attracting loyal customers and segments

• It is the image, baby!

What is Brand Equity??

A set of assets andA set of assets andliabilities linked to a brand’s nameliabilities linked to a brand’s nameand symbol that add or subtractand symbol that add or subtract

from the value provided by afrom the value provided by aproduct or service to a firm and/ orproduct or service to a firm and/ or

that firm’s customers.that firm’s customers.

Aaker, David A. (1991), Aaker, David A. (1991), Managing Brand Equity: Capitalizing on Managing Brand Equity: Capitalizing on the Value of a Brand Name, the Value of a Brand Name, The Free Press, New YorkThe Free Press, New York

BrandBrandEquityEquity

Awareness

Competit

ive

Advantage

Associations

Perceiv

ed

Quality

Loyalty

For more see:Aaker, David A. (1995), Strategic Market Management,4th ed., Wiley, NY

The World’s 10 Most Valuable Brands – Interbrand 8/5/02

Rank Brand Value (billions)

1 Coca Cola $69.6

2 Microsoft $64.1

3 IBM $51.2

4 GE $41.3

5 Intel $30.9

6 Nokia $30

7 Disney $29.3

8 McDonald’s $26.4

9 Marlboro $24.2

10 Mercedes $21

Benefits of Brand Equity

• Leverage when bargaining with distributors and retailers

• Charge higher price for product

• Launch extensions

• Some defense against price wars

• Brand valuation

Faithful or Fickle?A look at brand loyalty

• Cigarettes 71%

• Mayonnaise 65%

• Toothpaste 61%

• Coffee 58%

• Athletic shoes 27%

• Canned veggies 25%

• Garbage bags 23%

Branding Decisions

• Brand or not to brand?

• Brand sponsor decision

• Brand name decision

• Brand strategy decision

• Brand repositioning decision

Branding StrategiesBranding Strategies

BrandBrand No BrandNo Brand

Manufacturer’s Brand

Manufacturer’s Brand Private BrandPrivate Brand

IndividualBrand

IndividualBrand

Family Brand

Family Brand

Combi-nation

Combi-nation

IndividualBrand

IndividualBrand

Family Brand

Family Brand

Combi-nation

Combi-nation

Brand Strategy Brand Strategy DecisionsDecisions

• Line extensions – existing brand to new sizes, forms, flavors etc.

• Brand extensions – brand names extended to new product categories

• Multibrands – flanker brands

• Cobranding – combination of two or more brands

• New brands

Three Questions to Ask

• Krispy Kreme

• Starbucks

So How do You Do This??

Some tips from “Brand Warfare: 10 Rules for Building the Killer Brand” by David D’Alessandro

R1: It’s The Brand, Stupid• Brand arrogance was once

commonplace– Brands that were once invincible are shadows of

their former selves (ABC, CBS, NBC)

• The consumer revolution– Consumer attitudes changed – don’t trust “big”– Cheaper to enter business and create brands

(amazon - $300,000)– Information access for consumers

• When the consumer rules, arrogance kills– The power of choice & importance of

differentiation

R2: Co dependency can be Beautiful…

• People pay attention to brands – they need them

• Brands save time– Think OTC drugs

• Brands project the right image– “No one can fault you for buying an IBM”

• Brands provide an identity– Brand communities (Harley; Ebay); comfort

levels

R3: A Great Brand Message is Like a Bucking Bronco – once you are on,

don’t let go…• Brand New? Who is it going to be. Brand

Old? What is it and where should it go. Which is easier??

• Its not the idea that rules, it’s the execution

• Brand message has to speak to consumers

• Keep it relevant and consistent

R4: If you want Great advertising, be prepared to fight

for it• Beware of flatterers

• It is not necessarily good advertising that the client is after

• Be memorable

• Don’t change the advertising because you are bored with it.

R5: When it comes to sponsorships, there is a sucker

born every 30 seconds• Get in for the right reasons

• Understand the players– The event organizer, TV Networks, the

athletes and their entourages

• Look for a balance of power

R6: Don’t Confuse Sponsorship with a Spectator

Sport

• Use the sponsorship every day in every way

• Set the right expectations

• Make sure you achieve something measurable and real

R7: Do not allow scandal to destroy in 30 days a brand that

took 100 years to build• Brand is destiny

• Do not allow your enemies to define you

• Do not stall. Do not allow the lawyers to stall.

• You can run – but you cannot hide