Branding Strategy

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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 competitors

Brands 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 businesses

For Consumers:

Brands set and fulfil expectations

Reduce Risk

Simplify decision making

Take on personal meaning

Become a part of their identity

For Companies:

Simplify product handling

Organise inventory and accounting

Offer legal protection

Create brand loyalty

Secure competitive advantages

Defining 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 Promise

The marketers vision of what the brand must be and do for the customers/consumers

Brand Equity Models

1. Brand Asset Valuator

2. Brand Resonance Pyramid

Brand Asset Valuator

Looks at four different elements

- Energised differentiation

- Relevance

- Esteem

- Knowledge

Energised 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 value

Esteem 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/Unfocused

Niche/Momentum

Leadership

Eroding/Declining

Can 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 blocks

At the base: Salience Objective: Deep, Broad brand awareness

First Tier: Performance and Imagery Objective: Points of parity and Difference

Second Tier: Judgements and Feelings Objective: Positive, accessible reactions

Top 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 Equity

1) Brand value chain

VALUE STAGES : Marketing program Investment > Customer mind set > Brand performance > Shareholder value

MULTIPLIERS: Program Multiplier ^ Customer Multiplier ^ Market Multiplier ^

2) Brand Audit

Frequent qualitative focus groups

what do you think about our brand

3) Brand Tracking Studies

Quantitative surveys, systematically track changes in customer perceptions

4) 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 Brand

Brand Extension

Line Extension Alpro Milk > soya, almond, hazelnut

Category Extension Alpro > Milk, yoghurt, ice cream etc

Sub Brands Hershey > Hershey Kisses // Mini > Mini Cooper

Brand Mix

Branded Variants

Licensed Products

Branding 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 Matrix

Dogs, 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 Branding

A brand that in most countries uses the same strategic principles even though some of the marketing mix elements may change

Glocal Strategies

Adapting 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 global

1) Valuable intangible asset

2) Solid demand for the product

3) 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