Factors and Approach Methodology

'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.'

 Asset

that drives premium pricing and future cash flows 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

'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 95%' '50% of customers are willing to try a new product from a preferred brand because of the implied endorsement, credibility and trust.' Customer Loyalty and Advocacy Premium Pricing 'I would buy again' 'I would highly recommend' 'I would travel farther' 'I would wait longer' 'I would pay more'

 Ultimately,

a brands meaning to consumers represents the sum total of the consumers experiences with the brand either through direct or indirect means.

 Create

superior customer experiences that drive unshakable loyalty, advocacy and profitable revenue growth Manage, protect, leverage & enhance brands Engine of innovation & ideas that drives business

 'The

business enterprise has two and only two basic functions: Marketing and innovation. Marketing and innovation produce results; All the rest are costs.' Said by Peter Drucker

 Economies

of scale across multiple markets Uniformity of image Responsiveness to global customers

The power of a brand is inversely proportional to its scope Chevrolet, Ford Am Ex (senior, student, membership miles, optima etc) Levis (27 different cuts custom fit 31-19%) Crest 38 SKUs 36% market share, today over 50 SKUs 25% market share only 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

Contraction of a 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)

 Body

shop: Anita Roddick traveled the world for publicity, pushing ideas about environmental protection 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

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

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 delivery 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 world'

Customers disbelieve most product claims Coca-cola: the real thing Credentials will make prospects believe almost anything Leadership is the most direct way to establish credentials Polaroid leader in instant photography but it couldnt be stretched to conventional 35mm film against Kodak Many companies run branding programs devoid of credentials: 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

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

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 market Coca cola and Pepsi both benefit from the advertising wars

 Xerox
Mitsubishi

(corporartion, electric, motors, heavy indus., chemical, oil, materials, estate, construction etc)

 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 mean?

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, Nintendo-PlayStation) Similar businesses located close together (Planet Hollywood Hard Rock Caf) Market shares higher than 50% consider launching multiple brands not line extensions Coca cola 50%, Fed Ex 45% of domestic market

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, Xerox) 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)

 Company

Word Brand dominates: Tide P &G Equal weight: Gillette Sensor Brand names should take precedence over company names 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 - Excel

dominates: Microsoft Microsoft

 Holiday

Inn wanted to get into the upscale hotel segment Invent a sub brand: Holiday Inn Crowne Plaza Everybody thought it was too expensive for a Holiday Inn Remained as Crown Plaza

second brand strategy is not for every company General Motors: Chevrolet, Pontiac, Buick, Cadillac Let the brands fight among themselves Each division broadened the scope of its brand, leading to brand confusion Sibling strategy required top management supervision Toyota Lexus (common product area, rigid distinctions price, different not similar brand names)

 Horizontal

shape provides maximum impact for the logo 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)

 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

 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

 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.

 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

 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 Science)

 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

 Establish

Brand Strategy and Architecture Determine Governance Structure Define the Brands Identity Establish a Distinctive Positioning Align All Touchpoints Measure and Report Progress

 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

Profile of the Walt Disney Companys Branding 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 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 brands.

 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

 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.

 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

 Brand

Essence Performance Passion for driving Core Identity Elements Heritage/engineering Quality Styling Logo Extended Identity Elements Fun Youthful Nimble 'The Ultimate Driving Machine'

Status

 Merrill

Lynch 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. Merrill Lynch Bull in Russia Russians saw nothing but food in the realistic depiction of Merrill Lynch 'Bull' symbol Solution - A highly stylized version of the logo was developed

 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. Making an American Brand Relevant in China

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

 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

 Every

touchpoint with customers or prospects is an opportunity to reinforce brands position & core messages everywhere the brand is available. 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

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 tower 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