Branding Strategy

Alex Millar
Note by Alex Millar, updated more than 1 year ago
Alex Millar
Created by Alex Millar over 3 years ago
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Second Year Marketing (Term 2) Note on Branding Strategy, created by Alex Millar on 06/13/2016.
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Page 1

What is a brand?A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the products and services of one seller/group of sellers and differentiate them from competitors. > Name, Term, Sign, Symbol or Design> Or a combo> Identify the products and services of one seller/group of sellers > Differentiate from competitorsBrands attach feeling to differentiate them which can not easily be substituted - source of Sustainable Competitive Advantage What is the role of a brand?Brands have different roles for consumers and businessesFor Consumers:Brands set and fulfil expectationsReduce RiskSimplify decision makingTake on personal meaningBecome a part of their identity For Companies:Simplify product handlingOrganise inventory and accountingOffer legal protectionCreate brand loyaltySecure competitive advantagesDefining Brand Equity Customer Based Brand Equity The differential effect brand knowledge has on consumer response to the marketing of the brand[ The commercial value that derives from consumer perception of the brand name of a particular product, rather than the product itself ] > Perceptions, preferences and behaviour all effect brand equity Brand PromiseThe marketers vision of what the brand must be and do for the customers/consumers Brand Equity Models 1. Brand Asset Valuator2. Brand Resonance Pyramid Brand Asset Valuator Looks at four different elements- Energised differentiation- Relevance - Esteem- KnowledgeEnergised Differentiation - The brand's point of difference; relates to margins and cultural currency Relevance - How appropriate is the brand to target market; relates to consideration and trial Esteem - How the brand is regarded/perceived; relates to perceptions of quality and loyalty Knowledge - How well does the customer know/understand the brand; relates to awareness and consumer experience Together differentiation and relevance create Brand Strength - a leading indicator and future growth valueEsteem and Knowledge create Brand Stature - a current indicator, current operating value Score Brand Strength and Brand stature and then plot them on the Universe of Brand Performance Matrix this matrix gives an indication of the brand's status and overall performance in the current environment compared to competitors if you have enough and correct data Categories in the matrix: New/UnfocusedNiche/MomentumLeadershipEroding/DecliningCan track the progress of your brand and see how you compare to competing brands

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Brand Resonance Pyramid Maps the four stages of brand development 1. Identity - Who are you?2. Meaning - What are you?3. Response - What about you?4. Relationship - What about me and you?In the pyramid there are four levels of building blocksAt the base: Salience Objective: Deep, Broad brand awarenessFirst Tier: Performance and Imagery Objective: Points of parity and DifferenceSecond Tier: Judgements and Feelings Objective: Positive, accessible reactionsTop of triangle: Resonance Objective: Intense, active loyalty You want your brand to resonate an emotion that the customers can relate to Hot Spice - The Man your Man could smell like

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Measuring Brand Equity1) Brand value chainVALUE STAGES : Marketing program Investment > Customer mind set > Brand performance > Shareholder valueMULTIPLIERS: Program Multiplier ^ Customer Multiplier ^ Market Multiplier ^ 2) Brand AuditFrequent qualitative focus groupswhat do you think about our brand3) Brand Tracking StudiesQuantitative surveys, systematically track changes in customer perceptions4) Brand Valuation Financial value of the brand - Estimated Net Future Earnings

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Devising a brand strategy - Develop new brand elements for a new product (logo, name, term, style, design etc)- Apply existing brand elements to a new product- Use a combination of new and existing brand elements Options: Parent/Family BrandBrand ExtensionLine Extension Alpro Milk > soya, almond, hazelnutCategory Extension Alpro > Milk, yoghurt, ice cream etc Sub Brands Hershey > Hershey Kisses // Mini > Mini Cooper Brand MixBranded Variants Licensed ProductsBranding Decisions Are you a house of brands (unilever) or a Branded House (apple) ?Brand portfolio the set of all the brands that a particular firm offers in a particular category or market segment these need to be managed (like products) using something similar to the Boston MatrixDogs, Cash Cows, Question Marks and Rising Stars Need the cash cows to bring in revenue to support the growing brands Brand Extensions Introducing a host of new products under a firm's strongest brand name + Improved chances of new product's success+ Positive feedback efforts- Risk of brand dilution- Might harm parent brands- Firm forgoes opportunity to create a new brand

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Global BrandingA brand that in most countries uses the same strategic principles even though some of the marketing mix elements may change Glocal StrategiesAdapting some of the aspects of the brand to reflect the market in which it is operating with a "think global, act local" orientation> Fresh n Easy tesco in america> Starbucks adapt their physical stores to reflect the culture of the local environment Factors leading to increased global branding Cultural and media globalisation Oversaturation in certain markets Fall of communism opened up new markets Growing love of western pop culture Global competitors Population explosions - increase in wealth in other nations Pre-requisites for going global1) Valuable intangible asset2) Solid demand for the product3) Ability to reproduce consumer experience in a new market Why do global brands work? Same positioning worldwide - recognisable and familiar There's a category focus - starbucks is coffee, apple is tech Company name is the brand name Consuming brand = club membership - you're part of something big Action on CSR - go beyond what's required and do the "right" thing

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