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What Is A Brand?


What Is A Brand? Investing In Their Brands The Role of Marketing Create superior customer experiences that drive unshakable loyalty, advocacy and profitable revenue ... – PowerPoint PPT presentation

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Title: What Is A Brand?

What Is A Brand?
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 competition. American Marketing
What Is A Brand?
  • Asset that drives premium pricing and future cash
  • Signal of quality and a trust mark
  • Relationship
  • A set of rational and emotional associations that
    identify and differentiate a company or its offer
  • A form of self expression

Determinants of Brand Strength
I would buy again I would highly recommend I
would travel farther I would wait longer I
would pay more
  • It takes 7 to 10 times the cost and effort to
    secure a new customer as it does to keep an
    existing customer
  • An increase in customer loyalty of only 5 can
    lift lifetime profits per customer by as much as
  • 50 of customers are willing to try a new
    product from a preferred brand because of the
    implied endorsement, credibility and trust.

Investing In Their Brands
Top 20 Global Marketers
Source Advertising Age, November 8, 2004
Ultimately, a brands meaning to consumers
represents the sum total of the consumers
experiences with the brand either through
direct or indirect means.
The Role of Marketing
  • Create superior customer experiences that drive
    unshakable loyalty, advocacy and profitable
    revenue growth
  • Manage, protect, leverage and enhance brands
  • Engine of innovation and ideas that drives

The business enterprise has two and only two
basic functions marketing and innovation.
Marketing and innovation produce results all the
rest are costs. Peter Drucker
The Allure of Global Brands
  • Economies of scale across multiple markets
  • Uniformity of image
  • Responsiveness to global customers

The laws of Branding
The law of expansionthe power of a brand is
inversely proportional to its scope
  • Chevrolet, Ford
  • Am Ex (senior, student, membership miles, optima
  • Levis (27 different cuts custom fit 31-19)
  • Crest 38 SKUs 36, today over 50 SKUs 25
  • The power of a brand is not the sales generated
    by the brand (competition)
  • Overzealous brand names
  • Vaseline intensive care suntan lotion
  • Gillette clear gel antiperspirant

Contractiona brand becomes stronger when you
narrow its focus
  • Starbucks corp. a coffee shop that specializes
    in coffee
  • Toys R Us 20 of toys in US (specialty store
    or category killer) Babies R US, Kids R US
  • Narrow the focus contracting the category not
    expanding it
  • Stock in depth 10,000 toys versus 3,000 toys in
    department store
  • Buy cheap makes money buying
  • Dominate the category
  • Microsoft 95 desktop computer operating systems
  • Intel 80 microprocessors
  • Coca-Cola 70 of cola
  • NOKIA (paper, chemicals, rubber products,
    electronics, machinery, computers, mobile phones)

Publicitythe birth of a brand is achieved with
publicity not advertising
  • Body shop Anita Roddick traveled the world fro
    publicity pushing ideas about environmental
  • Starbucks, Wal-Mart brands dont create
    publicity, people do
  • Best way to generate publicity be first
  • Band-Aid, CNN, Compaq, Gore-Tex, Time, Hertz,
    Xerox, Playboy, Intel
  • Fast development fax vs internet

Advertisingonce born a brand needs advertising
to stay healthy
  • Shift from publicity to advertising
  • Should leaders advertise?
  • Heinz Americas favorite ketchup
  • Budweiser, king of beers
  • Coca-cola the real thing
  • Visa, its everywhere you want to be
  • Almost every ad makes some type of better product
    claim. What happens when you say our product is
    the leader?
  • Advertising is a powerful tool not to build a
    brand or leadership but to maintain leadership

Worda brand should strive to own a word in the
mind of consumer
  • Mercedes-Benz prestige
  • Volvo safety
  • BMW fun to drive
  • Own a category word
  • Kleenex is tissue
  • Make me a Xerox copy, hand me the Scotch tape
  • Fed Ex in the delivery business (Emery Air
    Freight leader), CEO narrowed its focus overnight
    only Fed Ex the generic term for overnight
  • Branding a prestige product or service
  • Make it more expensive than competition
  • Find a core word for prestige
  • Mercedes Engineered like no other car in the

Credentialscrucial ingredient in the success of
any brand is its claim to authenticity
  • Customers disbelieve most product claims
  • Coca-cola the real thing
  • Credentials will make prospects believe almost
  • Leadership is the most direct way to establish
  • Polaroid leader in instant photography but the
    brand couldnt be stretched to conventional 35mm
    film against Kodak
  • Many companies run branding programs devoid of
  • Tastes great, saves money, whitens teeth
  • Find credentials that can be exploited or create
    credentials by inventing a product category
  • The leading Mexican beer
  • The leading ice beer

QualityQuality is important but brands are not
built by quality alone
  • Does quality keep time better than Swatch?
  • Does coca-cola taste better than Pepsi?
  • There is no correlation between success in the
    market place and comparative testing
  • For a powerful brand build a powerful perception
    of quality in the minds of consumers
  • Contraction, name, price
  • Conventional wisdom marketing a high quality
    product at a comparable price QUALITY STRATEGY
  • Deliberately start at a higher price then find
    what you can put in the brand to justify it
  • Rolex made watches bigger and heavier
  • Montblanc made pens fatter

Categorya leading brand should promote the
category not the brand
  • Brand new categories Stolischnaya,
    Mercedes-Benz, Volkswagen
  • Narrow the focus down to nothing and start
    something totally new
  • Launch the brand in such a way as to create
    perception that it was the first, the leader.
    Describe the word in such a way.
  • Promote the new category
  • When you are first you can preempt the category
    the only brand associated with the category
  • When competition appears?
  • Continue promoting the category. Expand the
  • Coca cola and Pepsi both benefit from the
    advertising wars

Namea brand is nothing more than a name
  • Xerox
  • Mitsubishi (corporartion, electric, motors, heavy
    indus., chemical, oil, materials, estate,
    construction etc)

Extensionsthe easiest way to destroy a brand is
put its name on everything
  • 90 of all new products in the US are line
    extensions (Bud dry, light, ice)
  • Manufacturer approach the volume is going
    nowhere, lets increase brands to increase sale
  • Light, clear, healthy, fat-free line extensions

Fellowshipto build the category a brand should
welcome other brands
  • When you broaden a brand you weaken it
  • Coca-cola Pepsi-cola
  • Choice stimulates demand, competition makes
    customers more conscious, increases the noise
    level, tends to increase sales in the category
  • For each category, two major brands (Kodak-Fuji,
  • Similar businesses located close together (Planet
    Hollywood Hard Rock Café)
  • Market shares higher than 50 consider launching
    multiple brands not line extensions
  • Coca cola 50, Fed Ex 45 of domestic market

Genericone of the fastest routes to failure
give a generic name
  • General Motors, General Electric, General Foods
  • Generic brand name inability to differentiate
    from competition (Natures Answer, Natures Herb,
    Natures Secret, Natures Way)
  • Revolutionary and unlikely to be copied (Kodak,
  • Take a regular word and use it out of context to
    connote the primary attribute of the brand
    Blockbuster video
  • Intelligent Chip Company Intel Corp.
    (Intelligent Chip Inside Intel Inside)

Companybrands and companies there is a
  • Company dominates Microsoft Microsoft Word
  • Brand dominates Tide PG
  • Equal weight Gillette Sensor
  • Brand names should take precedence over company
  • Best branding strategy to use the company name as
    a brand name (GE, Coca-cola, IBM)
  • Cola itself is Coca-Cola the real thing, What is
    New Coke
  • Microsoft part is redundant Microsoft Excel -

Sub brandswhat branding builds, sub branding can
  • Holiday Inn wanted to get into the upscale hotel
  • Invent a sub brand Holiday Inn Crowne Plaza
  • Everybody thought it was too expensive for a
    Holiday Inn
  • Remained as Crown Plaza

Siblingsthere is a time and place to launch a
second brand
  • A second brand strategy is not for every company
  • General Motors Chevrolet, Pontiac, Buick,
  • Let the brands fight among themselves
  • Each division broadened the scope of its brand,
    leading to brand confusion
  • Sibling strategy required top management
  • Toyota Lexus (common product area, rigid
    distinctions price, different not similar brand

Shapea brands logo should be designed to fit
the eyes
  • Horizontal shape provides maximum impact for the
  • Legibility typeface does not express an
    attribute of the brand.- Rolex?, Rolls-Royce?
  • The trademark is often overrated. Its the Nike
    name that gives meaning to the Swoosh symbol
  • There are only a handful of simple symbols that
    make effective trademarks (Mercedes star)

Coloruse a color that is opposite of the major
  • Cola is a reddish-brown liquid, so it is one of
    the reasons Coca-cola picked red.
  • Pepsi picked red for the cola and blue to
    differentiate. Poor choice. The lack of a unique
    differentiating color makes Pepsi invisible in
    the sea of Coca-cola red.
  • Pepsi cola is going blue

Bordersa brand should know no borders
  • Keep the brand narrow focus in its home country
  • Go global
  • Crossing a border adds value to the brand
  • Watches from Switzerland
  • Wines from France
  • Clothing from Italy
  • Need to be first
  • The product needs to fit the perceptions of its
    country of origin
  • Ex Mercedes Benz Smart - Swatch

Consistencya brand is not built overnight
  • The market is changing! Change the brand!
  • Tanqueray gin / Absolut Stolichnaya high end
    vodkas, so Tanqueray vodka was created
  • Volvo, why limit to boring safe sedans, introduce
    convertible sports cars, dilute safety message
  • Limit the brand. It has to stand for something
    simple and narrow in the mind.

Changebrands can be changed, only infrequently
and very carefully
  • Changing occurs in the mind of consumer
  • If the brand is weak or non existent in the mind,
    change. If the brand has a unique and distinct
    perception changing is a great risk.
  • Kentucky Fried Chicken - KFC

Mortalityno brand will live for ever
  • What is a Kodak? Conventional camera and
    conventional photographic film. The market is
    slowly shifting to digital photography. Kodak is
    still investing
  • Kodak is investing in digital (Kodak Digital

Singularitymost important aspect of a brand is
its single-mindedness
  • What is a Chevrolet? A large, small, cheap,
    expensive car or truck.
  • What is an Atari? Used to be a video game, tried
    to be a computer
  • Singularity helps a brand perform its most
    important function
  • Instead of a safe car ask for a Volvo
  • Instead for a driving machine ask for a BMW

Managing Global Brands For Success
Six Steps to Managing Global Brands for Success
Establish Brand Strategy and Architecture
DefinetheBrands Identity
EstablishaDistinctive Positioning
MeasureandReport Progress
Determine Governance Structure
AlignAll Touchpoints
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Establish Brand Strategy and Architecture
Step 1
  • Creates the strategic framework for the
    relationships among the master or parent brand
    and other brands in the portfolio
  • Drives clarity in the organization regarding the
    operating philosophy for the use of the brand and
    its role

Company Type Affects Branding Approach
  • Uses single master brand
  • Spans multiple products and services
  • Descriptive names used with master brand
  • Combines use of master brand with secondary
  • Stand-alone brands used strategically
  • Multiple stand-alone brands
  • No visible connection of brands to parent

  • Virgin
  • Virgin Airways
  • Virgin Cola
  • Virgin Records
  • BMW
  • X5
  • 325
  • 525
  • IBM Thinkpad
  • SONY Walkman
  • Apple ipod
  • Touchstone Pictures
  • PlayStation
  • Proctor Gamble
  • Tide
  • Crest
  • Pampers
  • Unilever
  • AXE
  • Dove
  • Ponds

Alternative Global Branding Approaches
Profile of the Walt Disney Companys Branding
Core Essence Wholesome Family Entertainment
Careful application of the Disney master brand
allows it to remain true to its core essence
while penetrating new markets using stand-alone
  • Disney World
  • Disney Theatrical Productions
  • Disney Imagineering
  • Disneyland Resorts
  • Disney Hand
  • Disney Cruise Line
  • Disney Radio
  • Disneyland Paris/Tokyo
  • ABC Television
  • ESPN
  • Buena Vista Television
  • Miramax
  • Touchstone Pictures
  • Hollywood Records

Determine Governance Structure
Step 2
  • Governance structure must align with and support
    brand strategy
  • Degree of centralization determines level of
    control and flexibility
  • Governance model must focus on executional
    challenges and core problems inherent in managing
    a global brand

Organization Structure
  • Centralized
  • Emphasizes brand as a core asset
  • Monitors consistency of brand positioning across
    multiple markets
  • Typically involves senior executives and CEO as
    brand champion
  • Ensures adoption of brand requirements across
  • Limits flexibility
  • Decentralized
  • Emphasizes flexibility and adaptation to
    accommodate local needs
  • Managed by global brand team that seeks support
    from upper management
  • No single person owns global brand

Core Problems
  • Fear of losing local autonomy while being held
    accountable for results
  • Lack of awareness of the brands shared
    characteristics and challenges across markets
  • Poor communications that restrict idea exchange
  • Little understanding of local marketers
  • Inadequate support from corporate center and
    inflexible and static guidelines

Define the BrandsIdentity
Step 3
  • Provides organizational touchstone, both
    internally and externally
  • Basis for strategic roadmap guiding brand
    positioning, communications, brand extendibility

Brand Identity Provides Strategic Direction
Brand Essence Summary of the brands identity
the heart and soul of the brand.
Core Identity Core values, key competencies and
associations that remain consistent across
products, markets and through time.
Extended Identity Elements that provide texture
and completeness personality, organization,
product characteristics.
All Brands Must Articulate Their Brand Essence
And Manage It Consistently
Performance, passion for driving Authentic,
real, original Wholesome family
entertainment Innovation Ubiquity
Establish a Distinctive Positioning
Step 4
  • What is positioning?
  • Grows out of the brands core identity
  • The case you make which establishes your
    relevance and superiority vs. the competition. It
    is the space you want to occupy on the consumers
    mental map that distinguishes your brand while
    redefining your competitors

BMWs Brand Positioning
The UltimateDriving Machine
  • Brand Essence
  • Performance
  • Passion for driving
  • Core Identity
  • Elements
  • Heritage/engineering
  • Quality
  • Styling
  • Logo
  • Extended Identity
  • Elements
  • Fun
  • Youthful
  • Nimble
  • Status

Positioning Challenges
  • Relevance across markets
  • Ensuring broad understanding across organization
  • Degree of adaptation permissible while being true
    to brand essence
  • Management of partners in consistent
  • Ongoing monitoring

Achieving Cultural Relevance and Authenticity
  • Cultural relevance is all about the seemingly
    small issues needed to make brands feel friendly
    to a consumer's culture, language, lifestyle,
    habits, values, etc.
  • Cultural relevance is more than translation!
  • Customers notice "abnormalities, whether its an
    Americanized way of writing dates, tonality of
    message, or inappropriate syntax, graphics,
    colors, and many other points of sensitivity.
  • Achieving cultural relevance starts with
    development of communications concepts and
    messaging strategies that are meaningful globally

Challenges in Achieving Local Relevance Merrill
Merrill Lynch Bull in Russia
  • Problem
  • Tagline Tradition of Trust did not work in the
    society where banks are not trusted.
  • Solution
  • Adapt the tagline to position ML as an educator
    whose experience deserves trust.

Challenges in Achieving Local Relevance Merrill
Merrill Lynch Bull in Russia
  • Problem
  • Russians saw nothing but food in the realistic
    depiction of Merrill Lynch Bull symbol
  • Solution
  • A highly stylized version of the logo was

Challenges in Achieving Local Relevance Allstate
Making an American BrandRelevant in China
  • Taking into account Chinas one-child
    population control policy, the familiar Allstate
    good hands symbol (which depicted a typical
    two-child American family) was modified to
    reflect the reality of consumers lives in China.

Challenges in Achieving Local Relevance
Keeping The Classic Look and Taste Worldwide
  • When Coca-Cola was first introduced into the
    Chinese market, Chinese characters selected
    sounded like Coca-Cola but actually meant, bite
    the wax tadpole.
  • In Russian, enjoy was changed to drink,
    because enjoy has a particular sensual
    connotation, in that language, that doesnt apply
    to soft drinks.

Challenges in Achieving Local Relevance
Keeping The Classic Look and Taste Worldwide
  • For all non-Roman alphabets such as Arabic,
    Cyrillic, Greek, and many others, unique,
    proprietary Coca-Cola typefaces were created
    that are both culturally appropriate and in sync
    with the companys global image.

Challenges in Achieving Local Relevance
Mitsubishi Pajero
Averting a Branding Disaster in the Americas
  • Several years ago, Mitsubishi planned to
    introduce its popular European SUV, the Pajero,
    in North and South America
  • Although the word pajero carries no negative
    connotations in the Castilian Spanish spoken in
    parts of Europe, in Latin American slang the term
    has a seriously derogatory sexual meaning
  • The vehicle was renamed and released in the
    Americas as the Montero averting a potential
    global branding disaster

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Align All Touchpoints
Step 5
  • Every touchpoint with customers or prospects is
    an opportunity to reinforce the brands position
    and core messages everywhere the brand is
  • Critical to understand and control all
    touchpoints across the entire customer experience
    from the pre-purchase, to purchase, to
    post-purchase experience.
  • Given instantaneous availability of information
    and communications, news of a superior customer
    experience will travel fast as will news of a
    bad experience or product.

Measureand ReportProgress
Step 6
  • Create an overarching dashboard on the strength
    and vitality of the brand relative to competitors
    in each market
  • Measure interaction with brand at each touchpoint
  • Assess premium brand is capable of commanding.
  • Gauge level of preference and loyalty for brand
  • Reward and recognize marketplace successes
  • Share results across markets and regularly with
    senior management
  • Refine strategies and set goals based on findings

  • Be wary of brand extensions
  • Seek local market input get out of the ivory
  • No single approach is right in all instances
  • Ensure employees are immersed in your brand and
    understand their obligations
  • Share best practices and insights across markets
  • Align management with your brand goals
  • Strategy is about making choices
  • Intensely focus on execution
  • Never underestimate the power of local competitors
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