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Strategic Brand Management
The document provides a comprehensive overview of strategic brand management, defining a brand and its importance in creating customer loyalty, equity, and differentiation in the market. It discusses various aspects of brand management including customer-based brand equity, how to assess power brands, and the processes for building and measuring brand value. The content emphasizes the role of understanding consumer insights, establishing a brand vision, and strategic marketing planning to achieve successful brand outcomes.
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Strategic Brand Management
- 1. Strategic Brand Management Overview
- 2. What is aBrand? • A brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. • A global brand is a brand that is recognised throughout much of the world.
- 3. Power Brands p.3
- 4. The Top Determinantsof Brand Strength “I Would Travel Further” “I Would Pay More” “I Would Wait Longer” Customer Loyalty Price Premium “An increase in customer loyalty of only 5% can lift lifetime profits per customer by as much as 95%” “In some sectors, an increase of customer loyalty of just 2% is equivalent to a 10% cost reduction” “Over 50% of customers would be willing to pay 20-25% price premium to the brand that they are most loyal to” “A 1% increase in brand equity can result in a 1% increase in stock price” “50% of customers are willing to try a new product from a preferred brand because of the implied endorsement, credibility and trust.” “It takes 7 to 10 times the cost and effort to gain a new customer as it does to keep an existing customer”
- 5. What is BrandManagement? Functional Excellence in Firm wide Leadership in Support of the Brand Stewarding the Brand Primary Source of Differentiation Primary Source of Differentiation • Product/service innovation and • Customer experience, in addition to communication innovation and communication Purpose of the Brand Purpose of the Brand • Create or reinforce product • Provide clear set of values along distinctiveness which to align all enterprise activities and investments Source: Corporate Executive Board
- 6. What is BrandManagement? Innovative Analysts Archeologists Sociologists Brand Politicians CONSUMER Champions General Managers CHAMPION Templar Knights of Equity Evangelists Brand Stewards
- 7. What is BrandManagement? “You have to maintain and replenish a brand over time or it will die”
- 8. What is aBrand Management? • Brand Building Begins By – Understanding & anticipating the needs and desires of the consumer – Understanding the key attributes of the product(s) • Our Mission is to DISCOVER (rather than Invent) the brand’s CORE VALUES and abide by them.
- 9. Customer-Based Brand Equity(CBBE) Model Can there be Positive or Negative Brand Equity? How and Why? Brand Equity arises from 1 Consumer Response to differences in CONSUMER Marketing response What CONSUMERS learned, 2 Brand Knowledge felt, seen, heard, experienced over time 3 Differential Effect Reflected in CONSUMER perceptions, preferences, and behavior related to all aspects of the marketing of a brand
- 10. Effect of BrandPerceptions Taste Perceptions Taste Perceptions w/ w/Brand Knowledge “Blind” Taste Test * Heineken * Pure Blonde * Pure Blonde * Budweiser * Heineken * Coors * Coors * Guiness * Miller Lite * Guiness * Miller Lite * Budweiser The Key Consumers Must THINK To Branding Branded products are different
- 11. Customer-Based Brand Equity(CBBE) Model The Key Consumers Must THINK To Branding Branded products are different What CONSUMERS learned, 2 Brand Knowledge felt, seen, heard, experienced over time Brand Knowledge The Key Creates the differential effect To EQUITY that creates Brand Equity.
- 12. Consumer Conversion Model UNAWARE •Longevity •% Conversion •Market Presence % •Communication Intrusiveness NAME AWARENESS %% Conversion •Message Communication BRAND FAMILIARITY •Persuasion & Interest %% Conversion •Trial Inducement Promotions TRIAL %% Conversion •Product Performance ACCEPTANCE • Benefit Communication/Delivery %% Conversion •Benefit Importance USAGE %%Conversion •Uniqueness •Relevance REGULAR USAGE •Value •Loyalty Building Promotions
- 13. Consumer Conversion Model UNAWARE NAME AWARENESS 1 Consumer Response to Marketing BRAND FAMILIARITY TRIAL 2 Brand Knowledge ACCEPTANCE 3 Differential Effect USAGE REGULAR USAGE
- 14. Consumer Conversion Model UNAWARE NAME AWARENESS 1 Consumer Response to Marketing BRAND FAMILIARITY TRIAL 2 Brand Knowledge ACCEPTANCE 3 Differential Effect USAGE REGULAR USAGE
- 15. Brand Vision BIG HAIRY VISIONS& GOALS What are you deeply • Bad BHAGs Passionate About set with bravado, • Good BHAGS BHAG set with understanding What you Can What Drives be The Best in Your Economic the World at Engine Source: Jim Collins, Good To Great
- 16. Branding •Measuring Brand Share of Market Unit $$ Unit $$ Sales Sales Share Share National 120 $270 100% 100% Brand A 5 15 4.2% 5.6% Brand B 15 15 12.5% 5.6% Brand C 3 7 2.5% 2.6%
- 17. Brand Unit Shares Brand Dollar Shares 4% 6% 6% 13% 3% 3% 80% 85% Brand A Brand B Brand C All other Brand A Brand B Brand C All other
- 18. Strategic Brand Management Assessing Power Brands
- 19. Advantages of PowerBrands • Improved perceptions of • Larger margins product performance • More inelastic consumer • Greater loyalty response • Less vulnerability to • Greater trade cooperation competitive marketing • Increased marketing actions communications • Less vulnerability to crises effectiveness • Possible licensing opportunities
- 20.
- 21. Power Brands •WD-40 has gone against the grain for more than half a century by showing and telling consumers that it’s a product that can do it all • company’s messages about its 2000 applications and tips from helpful friends
- 22.
- 23. Power Brands • Assessing BRAND POWER BRAND DEPTH POWER BRAND WEIGHT Source: Interbrand
- 24. Power Brands • Assessing BRAND POWER The influence or dominance that a brand has over its category or market (more than just market share) BRAND WEIGHT Source: Interbrand
- 25. Power Brands • Assessing BRAND POWER The stretch or extension that the brand has achieved in the past or is likely to achieve in the future (especially outside its original category) Source: Interbrand
- 26. Power Brands • Assessing BRAND POWER The breadth of franchise that the brand has achieved both in terms of age spread, consumer types and international appeal Source: Interbrand
- 27. Power Brands • Assessing BRAND POWER BRAND DEPTH The degree of commitment that the brand has achieved among its customer base and beyond. The proximity, the intimacy and the loyalty felt for the brand. Source: Interbrand
- 28. Power Brands • Assessing BRAND POWER BRAND DEPTH POWER BRAND WEIGHT Source: Interbrand
- 29. Brand Vision To build successful brands while your competitors turn their brands into commodities start with a five-step process Kevin Clancy, Copernicus, Counter Intuitive
- 30. Brand Building •Kevin Clancy Copernicus’s 5 Step Process Transform- Model-Based Obsessive Inspirational Diagnostic ational Marketing Implement- Vision Metrics Strategy Planning ation Source: Kevin Clancy, Copernicus, Counter Intuitive
- 31. Brand Vision MUSTBE: So big, so bold and so audacious that expressing it – never mind executing it – has a transformational effect. You start to become what you want to be. The dream and the reality fuse. Source: Kevin Clancy, Copernicus, Counter Intuitive i.e. YOU NEED A BIG HAIRY VISION
- 32. Brand Vision Checklist Inspirational & uplifting; it moves people Exciting; it gets the blood pumping Aspirational; it is barely attainable Readable; it is clearly communicated Unique/special/different Very specific, not general Connotes superiority or domination Bold and brash; it oozes with confidence Causes people to want to invest in/work for the company or buy the company’s products Transformational, revolutionary, not evolutionary
- 33. Brand Vision •Let’s review some published vision statements • Assign them a college grade from 0 to 100. Kevin Clancy, Copernicus, Counter Intuitive
- 34. Brand Vision Abeverage company “We exist to create value for our shareholders on a long-term basis by building a business that enhances the company’s trademarks.” Grade = 63 Kevin Clancy, Copernicus, Counter Intuitive
- 35. Brand Vision Abeverage experience company “To have bigger brand awareness then Coca-Cola.” Big Hairy Audacious Goal Source: David Sutton, Zyman Marketing
- 36. Brand Vision Amotorcycle company “Yamaha Wo Tsubusa!” Kevin Clancy, Copernicus, Counter Intuitive
- 37. Brand Vision Atechnology company “To eclipse IBM as the #1 technology company in the world.” Grade = 91 Kevin Clancy, Copernicus, Counter Intuitive
- 38. Brand Vision Agasoline company “We will become the dominant brand in the service station industry and beyond – with the friendliest, fastest, cleanest stations everywhere – one of the most admired brands on the planet.” Grade = 96 Kevin Clancy, Copernicus, Counter Intuitive
- 39. POWER BRANDS • AllowConsumers to clearly identify and specify products which genuinely offer added value. • Deep respect for the way products fit into consumer’s lives = “core” of success • Consumer Relationship = Loyalty • Social Changes in their favor
- 40. Strategic Brand Management Consumer Driven Strategic Branding
- 41. Strategic Brand Management Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies Value Marketing Customer Market Shareholder Stages Program Mindset Performance Value Investment -Product -Awareness -Price Premiums -Stock Price -Communication -Associations -Price Elasticity's -P/E Ratio -Trade -Attitudes -Market Share -Market -Employee -Attachment -Expansion Success Capitalization -Other -Activity -Cost Structures -Profitability
- 42. Brand Value Chain& Testing Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies Value Marketing Customer Market Shareholder Stages Program Mindset Performance Value Investment Program Marketplace Investor Multipliers Quality Conditions Sentiment -Clarity -Relevance -Market Dynamics -Competitive reactions -Distinctiveness -Growth Panel -Channel Support -Consistency -Risk Profile -Customer size & Profile -Brand Contributions
- 43. Strategic Marketing Process Measure Brand Equity Market & Financial Competitive Health Trends Analysis & Long Term Business Marketing Analysis Consumer Insights Mix SWOTs Strategy Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role Establish Positioning Concept Three Year and ANNUAL Objectives What do I want to Accomplish Objectives Should be S.M.A.R.T ANNUAL STRATEGIES Annual Plan & Execution How will the objectives be achieved? Marketing Plan Execution Market Physical Product Package Research Consumer & Functional Objectives & Pricing Retailer Promo Strategies And Tactical Plan Public Advertising Relations Media
- 44. Strategic Marketing Process Measure Brand Equity Market & Financial Competitive Analysis & Long Term Strategy Health Trends Analysis & Long Term Strategy Business Analysis Consumer Marketing Insights Mix SWOTs Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role Establish Positioning Concept
- 45. Establish Positioning Strategic Marketing Process Concept Three Year and ANNUAL Objectives What do I want to Accomplish Objectives Should be S.M.A.R.T ANNUAL STRATEGIES Annual Plan & Execution How will the objectives be achieved? Marketing Plan Execution Market Physical Product Package Research Consumer & Functional Objectives & Pricing Retailer Promo Strategies And Tactical Plan Public Advertising Relations Media
- 46. Initial Strategic Planning DraftTimeLine • Key Timing EDLONG STRATEGIC PLAN TIMELINE Marketing Team Planning 05/19/03 Announce Global Strat Plan UK Check points UK Check points UK Check points UK Check points UK Check points 2003 KEY ACTION June July August Sept October November Corp Image Brandscape * Group Sorts * Process/Next Steps * Litmus to Hedgehog * Final Image Positioning Statement * Hedgehog only * Hedgehog + 'Scape * Leadership Approval Translation * Corporate Identity * 2004 Objectives *Sales force update/intro Objectives * Marketing team * Leadership Team Strategies/tactics * Training/Development * Apply Hedghog to current Roles * Marketing Team *Leadership Team *Other teams EXECUTION Product Architecture * Design Sessions * Presentation to leadership * Present Prototype to Sales * IT application Pricing Optimization Advertising Plan * Advertising Strategy *Media Strategy * Agency review * Creative Application * Final Creative
- 47. Strategic Marketing Process Measure Brand Equity Market & Financial Competitive Health Trends Analysis & Long Term Business Marketing Analysis Consumer Insights Mix SWOTs Strategy Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role Establish Positioning Concept Three Year and ANNUAL Objectives What do I want to Accomplish Objectives Should be S.M.A.R.T Annual Plan & Execution ANNUAL STRATEGIES How will the objectives be achieved? Marketing Plan Execution Market Physical Product Package Research Consumer & Functional Objectives & Pricing Retailer Promo Strategies And Tactical Plan Public Advertising Relations Media
- 48. Brand Marketing Process Measure Brand Equity Market & Financial Competitive Analysis & Long Term Strategy Health Trends Business Analysis Consumer Marketing Insights Mix SWOTs Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role
- 49. Strategic Marketing Market Trends Checklist Market Conditions •Household Penetration •Seasonality •Regionality (CDI/BDI) Retail Conditions Volume & Share •Channels of Distribution •Industry definition & served market •Product Sourcing/availability •Category Size & growth rates •Importance of the category to the retailer •Category Segmentation, trends, importance to category •Retailer focus on private label •Share of market by brand & by segment •Retailer influence over category marketing activity Consumer Conditions Government •Substitute products Conditions •Changes in •Regulations & Reqs. tastes/attitudes/needs •Legislative issues
- 50. Strategic Marketing • Assessing Competitive Trends Competitor Identification •Key direct competitors • Competitive Scope: •Regional/National/Global Advantage Competitive Strategy •Overall mission/priorities •Target Audience •Brand Turf/Positioning •Class of Trade (COT) importance
- 51. Strategic Marketing • Assessing Competitive Trends Competitor Identification •Key direct competitors • Competitive Scope: •Regional/National/Global Advantage Competitive Strategy •Overall mission/priorities •Target Audience •Brand Turf/Positioning •Class of Trade (COT) importance
- 52. Brand Marketing Process Measure Brand Equity Market & Financial Competitive Analysis & Long Term Strategy Health Trends Business Analysis Consumer Marketing Insights Mix SWOTs Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role
- 53. Measuring Brand Equity SWOT • Purpose: to guide thinking and help distill the key issues and opportunities facing the Brand AND the category • Can be done in competitive analysis STRENGTH WEAKNESS Inherent source of competitive Inherent cause of competitive advantage within the Brand (of disadvantage within the Brand (of genuine relevance to the consumer) genuine importance to consumer) OPPORTUNITY THREAT Unsatisfied or poorly satisfied need Potential problem from external source in the marketplace which our which could undermine our Brand’s competitive position if not addressed. company can perform profitability
- 54. Strategic Marketing SWOT • Purpose: to guide thinking and help distill the key issues and opportunities facing the Brand AND the category • Can be done in competitive analysis STRENGTH WEAKNESS Inherent source of competitive Inherent cause of competitive advantage within the Brand (of disadvantage within the Brand (of genuine relevance to the consumer) genuine importance to consumer) INTERNAL to the brand Caused by the inherent nature of the Brand or our management of it
- 55. Strategic Marketing SWOT • Purpose: to guide thinking and help distill the key issues and opportunities facing the Brand AND the category • Can be done in competitive analysis EXTERNAL to the brand Markets, competitors, retail, social trends etc. OPPORTUNITY THREAT Unsatisfied or poorly satisfied need Potential problem from external source in the marketplace which our which could undermine our Brand’s company can perform profitability competitive position if not addressed.
- 56. Brand Marketing Process Measure Brand Equity Market & Financial Competitive Analysis & Long Term Strategy Health Trends Business Analysis Consumer Marketing Insights Mix SWOTs Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role
- 57. Consumer Insights “Anotherway to create new marketing opportunities is through better understanding of your customers and their full array of needs” Dave Sutton, Zyman Marketing Group
- 58. Consumer Insights Inorder to improve your consumer understanding: – Rather than identify consumers, identify WITH them – Knowledge only gets you halfway there-you need a plan to put into action – Know what is in your consumers hearts and minds…as well as the market research numbers – Be curious about the world around and human behavior Dave Sutton, Zyman Marketing Group
- 59. Measuring Brand Equity • There are MACRO TRENDS that impact each touch point Macro Trends Pre-Purchase Point of Purchase Post Purchase •Category & •Role of Pricing & •Tasks & Activities WHAT is Consumer Promotion happening •Usage & User (Information) Segmentation •Role of Packaging Behavior •Role of Branding & Merchandising •Product Benefits •Role of •Role of the Retailer WHY is it •Product Details happening Communication (Understanding) •Role of Distribution
- 60. Measuring Brand Equity Consumer Insights • Centrum Herbals: – Line of herbal supplements, including Echinnacea, St John’s Wort… – Positioned as naturally complete and backed by the research of Centrum – Addressed the trend toward herbal remedies, but recognizes the insight that consumers don’t always have confidence in the manufacturers of herbal remedies and can be skeptical about what they’re buying… – Did it tie to the brand essence?? Did it work?
- 61. Measuring Brand Equity Consumer Insights • Thermasilk: – A line of shampoos, conditioners and styling products that actually improves the condition of hair when activated by heat… – Positioned as the hair care line for healthy hair (for heavy stylers/users) – Addressed the insight that women worry that they are damaging their hair by styling with heat, but are unwilling to give up the styling benefits – Was the insight relevant? Did the product meet expectations? Did it work?
- 62. Measuring Brand Equity Consumer Insights • Facts = “Duh” • Insights = “AHA”
- 63. Brand Value Correspondingto Brand Hierarchy Pyramid Very meaningful in differentiating our Brand but very difficult to deliver consistently to our Central Beliefs & consumers Core Values Expressive Benefits Features & Easy to deliver and explain Functional to consumers but also easy to Attributes imitate Source: Hierarchy : Timothy D. Ennis, Ennis Associates, Inc.
- 64. Brand Value: BrandHierarchy Pyramid Very meaningful in The emotional beliefs and differentiating our Brand but values that consumers feel very difficult to deliver are being addressed by our consistently to our brand (CENTRAL) Beliefs & consumers Core Values The functional and emotional benefits that our product/services provides to the consumer Benefits (EXPRESSIVE) Product/Service features Features & Easy to deliver and explain and/or attributes that must be to consumers but also easy to addressed (FUNCTIONAL) Attributes imitate
- 65. 4 Steps ofBrand Building Consumer Questions Brand Actions 4 WHAT About You Convert Brand Response to create AND ME? an intense, active loyal relationship Elicit consumer response to brand 3 WHAT About You? meaning and Id Firmly establish TOTAL brand 2 WHAT Are You? meaning by strategically linking associations w/certain properties 1 WHO Are You? Ensure Identification & association w/category or need
- 66. 4 Steps ofBrand Building Consumer Questions Brand Actions 4 WHAT About You Brand Relationships AND ME? Brand Responses 3 WHAT About You? Brand Meaning 2 WHAT Are You? 1 WHO Are You? Brand Identity
- 67. Consumer Conversion Model UNAWARE •Longevity 1 Brand Identity (WHO •% Conversion •Market Presence % Are You?) •Communication Intrusiveness NAME AWARENESS % 2 Brand Meaning % Conversion •Message Communication BRAND FAMILIARITY (WHAT Are You?) •Persuasion & Interest % % Conversion •Trial Inducement Promotions TRIAL 3 Brand Response % % Conversion •Product Performance (WHAT About You?) ACCEPTANCE • Benefit Communication/Delivery % 4 Brand Relationships % Conversion •Benefit Importance USAGE (WHAT About You % % Conversion ME?) AND •Uniqueness REGULAR USAGE •Relevance •Value •Loyalty Building Promotions
- 68. Consumer-Based Brand Equity Pyramid 4 Brand Relationships (WHAT About You AND ME?) Consumer- Brand Resonance 3 Brand Response (WHAT About You?) Consumer Consumer Judgments Feelings 2 Brand Meaning (WHAT Are You?) Brand Brand 1 Brand Identity (WHO Are You?) Performance Imagery Brand Salience
- 69. Consumer-Based Brand Equity Pyramid Loyalty 4 Brand Relationships (WHAT About You Attachment AND ME?) Resonance Community Engagement Quality Warmth, Fun Feelings Credibility Excitement, 3 Brand Response (WHAT About You?) Judgments Consideration Security, Social Superiority Approval, Self-Respect Brand Characteristics Imagery User Profiles Performance & Secondary Features Purchase and Usage 2 Brand Meaning (WHAT Are You?) Product Reliability, Situations Durability & Serviceability Service Effectiveness, Efficiency, Personality & Values & Empathy History, Heritage, & Style and Design; Price Experiences 1 Brand Identity (WHO Are You?) Category Identification Needs Satisfied Salience
- 70. Consumer-Based Brand Equity Pyramid Consumer- 4 Brand Relationships (WHAT About You Brand AND ME?) Resonance Consumer Consumer 3 Brand Response (WHAT About You?) Judgments Feelings Brand Brand 2 Brand Meaning (WHAT Are You?) Performance Imagery 1 Brand Identity (WHO Are You?) Brand Salience
- 71. Consumer-Based Brand Equity Pyramid 4 Intense, Active Loyalty Consumer- Brand Resonance 3 Positive Accessible Reactions Consumer Consumer Judgments Feelings 2 Points of Difference Brand Brand Performance Imagery 1 Deep Broad Brand Awareness Brand Salience
- 72. Consumer-Based Brand Equity Pyramid THIS is Where the Insight 4 Intense, Active Loyalty Lives Consumer- Brand Resonance 3 Positive Accessible Reactions Consumer Consumer Judgments Feelings 2 Points of Difference Brand Brand Performance Imagery 1 Deep Broad Brand Awareness Brand Salience
- 73. So WHO isOur Target? A Hedgehog Concept: •Is not a goal to be the best, What are you deeply Passionate About •not a strategy to be the best, •not an intention to be the best •not a plan to be the best •It is AN UNDERSTANDING What you Can What Drives of what you CAN be the best be The Best in Your at. the World at Economic Engine Source: Jim Collins, Good To Great
- 74. So WHO isOur Target? The consumer that 1) Is most attracted to our essence 2) We understand well 3) That is the most profitable growth segment to attract
- 75. Brand Marketing Process Measure Brand Equity Market & Financial Competitive Analysis & Long Term Strategy Health Trends Business Analysis Consumer Marketing Insights Mix SWOTs Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role
- 76. Strategic Brand Management Brand Switching
- 77. Branding Brand Dollar Shares 6% 6% 3% Brand Unit Shares 4% 13% • Measuring Brand Share of Market 85% 3% Brand Sales Brand = Share Brand A Brand B Brand C All other Category Sales 80% Brand A Brand B Brand C All other Unit $$ Unit $$ Sales Sales Share Share National 120 $270 100% 100% Brand A 5 15 4.2% 5.6% Brand B 15 15 12.5% 5.6% Brand C 3 7 2.5% 2.6%
- 78. Branding •Do consumers use more than one product within a category? • Do brands gain or lose sales or consumers from/to other brands? • Can brands increase consumer consumption of the category? • Measuring Brand Switching and Source of Volume Interpretation
- 79. Brand Switching Period 1 Period 2 Brand Switching SI Brand Competitors (+) (-) Changes in Category Consumption SI Brand (# units) Decreases - Increases SI Brand (+/- # units) SI Brand (# units) Lost/new brand buyers SI Brand (+/- # units) Competitors (+/- # units) New/Lost/Infrequent Category Buyers SI Brand Bought/Didn’t Buy Category
- 80. Brand Switching Brand Switching • The total amount of a brand’s volume gained from (or lost to) competitive brands in the category.
- 81. Brand Switching Category Consumption •The total amount of a brand’s volume gained (or lost) due to increased (or decreased) category consumption among households that bought the category in both periods. • The brand may have been purchased in one or both periods. Consumption is driven by either of the following components: – Decreases/Increases – Lost/New Brand Buyers
- 82. Brand Switching Category Consumption Changes • Decreases/Increases • Lost/New Brand Buyers Consumer Changes • New (or Lost) or Infrequent Buyers
- 83. Brand Switching Decreases/Increases • Total amount of brand volume lost/gained due to decreased/increased category consumption among households that bought the brand in both Period 1 and Period 2.
- 84. Brand Switching Lost/New Brand Buyers • Total amount of the brand’s volume lost/gained due to decreased/increased category consumption among households that bought the category in both Period 1 and Period 2, but bought the brand in only one Period.
- 85. Brand Switching New (or Lost) or Infrequent Buyers • The total amount of a brand’s volume gained (or lost) from buyers who purchased the category in one period but not the other.
- 86. Brand Switching Period 1 Period 2 Brand Switching SI Brand Competitors (+) (-) Changes in Category Consumption SI Brand (# units) Decreases - Increases SI Brand (+/- # units) SI Brand (# units) Lost/new brand buyers SI Brand (+/- # units) Competitors (+/- # units) New/Lost/Infrequent Category Buyers Bought/Didn’t Buy SI Brand Category
- 87. Personal Care Issuesto address: • From where is S brand growth coming? – Determine the sources of volume due to: • brand switching • increased/decreased category consumption • lost/new category buyers • Did S Product Line contribute to overall category growth? • What are the switching dynamics between “S” and other leading brands in the Category? • With which competitive brands does “S” show the greatest interaction? • What implications did volume switching and altered category consumption have on consumer purchase dynamics for “S”? • What are the sources of volume for the other leading Category brands? Particularly Key Competitors?
- 88. Personal Care BrandSwitching Analysis Parameters •Brands -St. Ives -*Lever 2000 -Suave -*Neutrogena -Soft-soap -Jergens -Dove -Tone -*Dial -Zest -Caress -Aveeno -Olay -*Calgon -Private Label -*Healing Garden -Clairol Herbal Essences -Sarah Michaels * Denotes brands that will have interaction indices only. Quantified sources of volume will not be provided for these brands due to coverage and/or trend issues. •Volume Equivalency = 1 ounce •Geography - Total U.S. Food/Drug/Mass (including Wal*Mart) •Time Periods -(Pre-period) 52 Weeks ending December 17, 2000 -(Post-period) 52 Weeks ending December 16, 2001
- 89. “S” Brand VOLUME (Net Volume) 26,268 18,684 Net Volume Gain: +40.6% Period One Volume Period Two Volume SUMMARY OF GAINS: “S” grew 27.3% versus YAG just Brand Switching 13.3 through new/ increased Increases consumption of SI category 11.3 consumption. Increased Brand Switching consumption New Brand Buyers 13.7 added another (+25.0) 13.3%. New Category Buyers 2.3 IRI Multi-Outlet Panel data, 104 weeks ending Dec 16, 2001
- 90. “S” Net VolumeGains (graphically represented as a percentage of total brand growth) “S” volume growth was spread amongst several different sources. Switching, increased consumption, and new brand buyers made up the majority of growth. New Category Buyers Switching to SI 6% 33% New Brand Buyers 33% Net Volume Gain: +40.6% Increased Consumption of SI 28% IRI Multi-Outlet Panel data, 104 weeks ending Dec 16, 2001
- 91. “S” Brand Interaction Index % Net Volume Gains/Losses 56 DOVE 0.6 119 0.4 56 OLAY 0.7 80 0.8 118 SUAVE 0.1 125 2.5 180 CLAIROL HERBAL ESSENCES 3.5 81 1.0 55 NEUTROGENA 0.3 82 0.6 168 JERGENS 0.7 83 0.3 85 HEALING GARDEN 0.2 NA -0.1 NA TONE 0.1 204 -0.6 129 SARAH MICHAELS 0.6 106 1.6 Source: IRI Multi-Outlet Panel, 104 weeks ending Dec 16, 2001
- 92. “S” Switching Volume Losses & Gains Due to Switching Losses Gains -440 DOVE 557 -965 1,039 -422 OLAY 560 -548 688 -1,177 SUAVE 1,203 -428 890 -442 HERBAL ESSENCES 1,103 -266 447 -16 NEUTROGENA 67 -432 549 -185 JERGENS 311 -129 180 -12 HEALING GARDEN 57 -21 0 -197 TONE 209 -138 21 -19 SARAH MICHAELS 136 -1,226 1,529 Source: IRI Multi-Outlet Panel, 104 weeks ending Dec 16, 2001
- 93. Brand Switching Period 1 Period 2 Brand Switching SI Brand Competitors (+) (-) Changes in Category Consumption SI Brand (# units) Decreases - Increases SI Brand (+/- # units) SI Brand (# units) Lost/new brand buyers SI Brand (+/- # units) Competitors (+/- # units) New/Lost/Infrequent Category Buyers Bought/Didn’t Buy SI Brand Category
- 94. POWER BRANDS The Key The Key to the power of the brand and • Assessing BRAND POWER Is with It’s Ultimate Value to the Company The Consumer BRAND DEPTH POWER BRAND WEIGHT Source: Interbrand
- 95. Strategic Marketing Process Measure Brand Equity Market & Financial Competitive Analysis & Long Term Strategy Health Trends Analysis & Long Term Strategy Business Analysis Consumer Marketing Insights Mix SWOTs Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role Establish Positioning Concept
- 96. Strategic Brand Management Brand Positioning Basics
- 97. Brand Positioning Basics “Act of designing the company’s offer and image so that it occupies a distinct and valued place in the target consumer’s minds” Philip Kotler
- 98. Branding “Pretty much everything today can be seen in relation to a love-respect axis. You can plot any relationship – with a person, with a brand – by whether it’s based on love or based on respect. It used to be that a high respect rating would win. But these days, a high love rating wins. If I don’t love what you’re offering me, I’m not even interested.” - Kevin Roberts, Saatchi and Saatchi
- 99. Branding Love * Trademark Mark Trust-Mark
- 100. POWER BRANDS •Attached to Consumers •Deep respect for the way products fit into Consumer’s lives = “Core” of Success
- 101. Brand Equity • A set of stored values that consumers associated with a Product/Service. • These associations add value beyond the basic product functions due to past investments in marketing the Brand. Timothy D. Ennis, Ennis Associates, Inc
- 102. Strategic Brand Management • Identifying & Establishing Brand Positioning/Values Grow and Sustain Brand Equity Measure & Interpret Brand Performance Plan & Interpret Brand Marketing Programs Identify & Establish Brand Positioning and Values
- 103. Strategic Brand Management • Identifying & Establishing Brand Positioning/Values Grow and Sustain Brand Equity Measure & Interpret Brand Performance Plan & Interpret Brand Marketing Programs •Mental Maps •Competitive Frame of Reference Identify & Establish Brand •Points of Parity and POD Positioning and Values •Core Brand Values •Brand Mantra
- 104. What is BrandPositioning? • Brand Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.
- 105. Brand Positioning Basics “A positioning must be… One, two or three words, phrases or sentences about your brand that you want to imprint in the heads of key stakeholders…. Kevin Clancy, Copernicus
- 106. Brand Positioning Basics “So clear, so succinct, and so powerful that once launched, it begins to move people toward your new evolving brand” Kevin Clancy, Copernicus
- 107. Brand Positioning Basics • All about identifying the optimal place of a brand and its competitors in the consumer’s mind Positioning = The Heart Of • Maximizing company Marketing potential benefit Strategy • The compass that guides marketing strategy
- 108. Brand Positioning Basics •THE POSITIONING STATEMENT DRAWS ON THE STRONGEST ASSETS Positioning = OF THE BRAND’S EQUITY The Heart Of – Clarifies what brand is all about Marketing – Uniqueness/Point of Difference Strategy – Why consumers should BUY & USE (Addresses their needs better than competition)
- 109. Brand Positioning Basics • WHO are you going to give this positioning to? • WHO are you going to market Positioning = your product to? The Heart Of • Are all consumers created Marketing Strategy equal? • WHAT do they want and need • What CONSUMER INSIGHT is your positioning based on?
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- 112. Brand Positioning Basics TASK: Create the most powerful Positioning you can own and feel passionately about …. Power Towards the most profitable Positioning consumer targets
- 113. Brand Positioning Basics Statethe thought you wish to implant in your target’s mind: • TO (core target audience), (Brand Name), • IS THE (frame of Power reference) Positioning • THAT (owned benefit) • BECAUSE (support or reason to believe)
- 114. Brand Positioning Basics Statethe thought you wish to implant in your target’s mind: TO oral health concerned Power adults, Listerine IS THE Positioning only brand of therapeutic mouthwash THAT kills germs that cause bad breath, plaque and gingivitis.
- 115. Brand Positioning Basics Statethe thought you wish to implant in your target’s mind: TO adults concerned about Power Positioning fresh breath, Scope IS THE brand of cosmetic mouthwash THAT prevents morning breath.
- 116. Power Positioning “Wheredeep understanding of your brand equity or essence links directly to a core consumer insight or value” Soni Simpson, Your Prof
- 117. POWER POSITIONING POWER Source: Soni Simpson
- 118. Power Positioning Insight Driven Platforms link to Brand Essence “I want to look and feel sophisticated everyday but without having to pay salon prices” Tresemme: Professional Affordable Solutions “Men’s Hair Needs are Different. I want my hair to look in control without the fuss” Consort: Distinctively male hair care that puts you in control. “I believe Swiss have near perfect skin. I want the secrets to blemish-free, smooth healthy-looking skin” St Ives: Discover the Swiss Secrets to Smooth, Radiant Skin “I like feeling and smelling feminine. Feeling and smelling fresh and clean are an important part of my daily routine in being feminine” FDS: A gentle all day fresh and clean made just for women.
- 119. Competitive Map Product GAPMap • Expanding Portfolio – Understanding the business – Leveraging Brand Essence and Consumer Insights Sample Competitive Map “Adult Sophistication” Godiva Rolo Traditional Innovative Tootsie Reese’s Starburst M&M Skittles “Youthful Fun”
- 120. Strategic Brand Management Building Brand Loyalty
- 121. Customer-Based Brand Equity (CBBE)Model Brand Equity arises from 1 Consumer Response to differences in CONSUMER Marketing response What CONSUMERS learned, 2 Brand Knowledge felt, seen, heard, experienced over time 3 Differential Effect Reflected in CONSUMER perceptions, preferences, and behavior related to all aspects of the marketing of a brand
- 122. Customer-Based Brand Equity(CBBE) Model The Key Consumers Must THINK To Branding Branded products are different What CONSUMERS learned, 2 Brand Knowledge felt, seen, heard, experienced over time Brand Knowledge The Key Creates the differential effect To EQUITY that creates Brand Equity.
- 123. Consumer Conversion Model UNAWARE •Longevity •% Conversion •Market Presence % •Communication Intrusiveness NAME AWARENESS %% Conversion •Message Communication BRAND FAMILIARITY •Persuasion & Interest %% Conversion •Trial Inducement Promotions TRIAL %% Conversion •Product Performance ACCEPTANCE • Benefit Communication/Delivery %% Conversion •Benefit Importance USAGE •Uniqueness % Conversion % •Relevance •Value REGULAR USAGE •Loyalty Building Promotions
- 124. Consumer Conversion Model UNAWARE •Longevity 1 Brand Identity (WHO •% Conversion •Market Presence % Are You?) •Communication Intrusiveness NAME AWARENESS % 2 Brand Meaning % Conversion •Message Communication BRAND FAMILIARITY (WHAT Are You?) •Persuasion & Interest % % Conversion •Trial Inducement Promotions TRIAL 3 Brand Response % % Conversion •Product Performance (WHAT About You?) ACCEPTANCE • Benefit Communication/Delivery % 4 Brand Relationships % Conversion •Benefit Importance USAGE (WHAT About You •Uniqueness % % Conversion ME?) AND •Relevance •Value REGULAR USAGE •Loyalty Building Promotions
- 125. Nine ways tomanage your brand as an asset 1. Formally link business and brand strategy 2. Create a unique and relevant Brand Identity 3. Create a clear and distinct Positioning 4. Extend your brand strategically 5. Build a strategic Brand Architecture 6. Evaluate and align touch points 7. Consistently deliver on your Brand Contract 8. Practice effective global brand management 9. Set the organization up for success
- 126. You are welcometo contact Nigel Bairstow at B2B Whiteboard your source of B2B Asia / Pacific marketing advice http://www.linkedin.com/pub/nigel-bairstow/6/41b/726 http://twitter.com/#!/b2bwhiteboard www.b2bwhiteboard.com