Brand Challenges

1
Brand Challenges

• 1. Brand identity?
• 2. Clarity/synergy in brand systems?
• 3. Silver bullet?
• 4. Do employees/partners know and care?
• 5. Emotional self-expressive benefits?
• 6. Organizational intangibles?
• 7. Brand personality?
• 8. Symbols?

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You cannot win the hearts of customers unless you
have a heart yourself. Charlotte Beers
3
Strategic Brand ManagementA New Paradigm

• David A. Aaker
• University of California, Berkeley

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Roots of the New Paradigm

• Brand Value became Visible
• Price Competition
• Global Complexities

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Brands as Valuable Assets

• Prices paid for brands
• Keys to growth
• Alternative to price competition

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Roots of the New Paradigm

• Brands as Valuable Assets
• Prices paid for brands
• Keys to growth
• Alternative to price competition
• Business Complexities
• Managing across products and markets
• Managing across countries
• Managing across media

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Roots of the New Paradigm

• Brands Perceived as Valuable Assets
• Business Complexities

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Strategic Brand Management

• Focus--Brand Identity
• Across Markets/Products
• Across Countries
• Across Media

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Brand Identity Focus

• Classic PG model--driver was sales
• Brand identity--aspirational image

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Classic PG Model

• Find areas of weak sales
• Research consumers and retailers
• Develop implement programs

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Strategic Brand Management
Strategic and Visionary vs. Tactical and Reactive
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Brand Identity Focus

• Research consumers and retailers
• Brand identify what you brand stands for
• Aspirational
• Brand personality, organizational associations
• Develop and implement programs
• Measure brand equity

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Virgin Core Brand Identity

• Best quality at value price
• Innovative features/services.
• Fun and Entertainment.
• Underdog--fight established firm

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Gap Core Brand Identity

• Gap style/attitude
• Easy to buy
• Color/fun

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Brand Personality--Japan

• Elegance (Vogue)
• Exciting (New York)
• Steadiness (3 Piece Suit)
• Kindness (Apple Pie)
• Tranquillity

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Driver--Brand Identity

• Brand identity--What brand strands for
• Goal--build and lever brands
• New measures

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HP Consumer Brand

• HP for Business
• Quality, reliable, trustworthy
• Engineering leader, technical, nerdy
• HP for Consumer Market
• Contemporary--into consumer trends
• Adventurous, energetic, new ideas
• Expanding Possibilities

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Marriott Hotels

• Marriott Hotel
• Top 4-star hotels
• Courtyard by Marriott
• Business hotel
• Fairfield Inn by Marriott
• Economy hotel

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Global Brand Management Goals

• Provide local relevance and vitality
• Leverage global brand
• Enhance impact
• Efficiencies

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Global Brand Management Challenges

• Detect and exploit consumer insights and best
  practices
• Create global vision

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PG System--Regional Category Managers

• Categories (Hair Care--Protene, Head Shoulders,
  Pert, Vidal Sassoon)
• Scope--marketing, manufacturing, RD
• Meetings--Chaired by senior PG executive
• Strategic Planning group supports
• Develops global brand strategy

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PG System Principles

• Understand consumer segments
• Innovate
• Define brand identity
• Test and roll out successes
• Strive for global brands

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Brands as Valuable Assets

• Prices paid for brands
• Keys to growth
• Alternative to price competition

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Suggestions for Association Development

• Have a clear brand identity that goes beyond
  brand attributes
• Use silver bullets
• Communicate the brand intervally
• Consider alternative media

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Keys to Communication Success

• In-depth knowledge/access of alternative media
• Communications true to brand
• Media synergy
• Involving, bonding customer experiences

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Sponsorship

• What are the sponsorship associations?
• How to link the brand to the entity sponsored?
• Will the associations click with the brand?
• Can the brand become part of event/customer bond?

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Combating Bad Publicity

• Audi fast acceleration
• Nestle baby food formula
• Admit the problem and provide visible solution
• Tylenol
• Quick and strong response
• Sazuki Samurai sport utility vehicle

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Correcting a Bad Image--Kaiser

• Image
• Bureaucratic, cold, unconnected
• Did not care about patients, only cost
• Remedies
• Ads showing doctors who care
• Focus on team Kaiser
• Branded services

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GE Appliances

• GE Monogram
• GE Profile
• GE Appliances
• Hotpoint
• RCA

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The Paradigm Shift

• The Classic Model
• Planner, Doer, Coordinator
• Driver--Sales, Costs
• Focused on a Brand and Country
• New Paradigm
• Driver-Brand Identity
• Communication Team Leader
• Manage Across Countries, Products, Brands
• Strategic and Visionary

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The Classic Model

• Planner, Doer, Coordinator
• Drive--Sales, Costs
• Focus--a Brand and A Country

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The New Paradigm

• Driver--Brand Identity
• Communication Team Leader
• Manage Across Countries, Products, Brands
• Strategic And Visionary

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Roots of the New Paradigm

• Brand Value became Visible
• Brand Equity

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Management Focus

• Brand Equity
• vs.
• Brand Image

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Building Strong BrandsA New Paradigm

• David A. Aaker
• University of California, Berkeley

36
Roots of the New Paradigm

• Brand Value is More Visible
• Prices paid for brands
• Price competition vs. profitable growth
• Business Complexities

37
Strategic Brand Management

• Focus--Brand Identity
• Scope
• Across Markets/Products
• Across Countries
• Across Media

38
Classic PG Model

• Find areas of weak sales
• Research consumers and retailers
• Develop implement programs

39
Brand Identity Focus

• Research consumers and competitors
• Brand identity
• Develop and implement programs

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Brand Identity Focus

• Research consumers and competitors
• Brand identity
• Develop and implement programs

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Organizational Associations

• People, Values, Programs
• Intangibles
• Innovation
• Leadership
• Global vs. Local

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IBM Brand

• 800 million communications
• Prior Gerstner--10 to IBM brand
• After Gerstner--50 to IBM brand

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Strategic Brand Management

• Focus--Brand Identity
• Scope
• Across Markets/Products
• Across Countries
• Across Media

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GE Appliances

• GE Monogram
• GE Profile
• GE Appliances

45
PG System--Regional Category Managers

• 11 Categories Teams--Five meetings per year
• Hair Care Category--Pantene, Head Shoulders,
  Pert, Vidal Sassoon
• Scope--marketing, manufacturing, RD
• Strategic Planning group supports
• Develops global brand strategy

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Brand Identity

• What the brand should stand for
• Aspirational
• Beyond product attributes

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Leadership

• Power brands--Volvo, Crest
• Explorer brands--Microsoft, Nike
• Identity brands--BMW, Levi

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Sponsorship Failings

• Develop right associations
• Link the brand to the event

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1992 Summer Olympics

• naming hotel sponsor
• Correct answer--Hilton 15
• Incorrect answer--Holiday Inn 15

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The New Paradigm

• Driver--Brand Identity
• Communication Team Leader
• Manage Across Countries, Brands
• Higher in Organization
• Strategic And Visionary

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The New Paradigm

• Driver--Brand Identity
• Communication Team Leader
• Manage Across Countries, Brands
• Higher in Organization
• Strategic And Visionary

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The New Paradigm

• Driver--Brand Identity
• Communication Team Leader
• Manage Across Countries, Brands
• Higher in Organization
• Strategic And Visionary

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Brand Position

• That part of the
• Brand Identity Value Proposition
• to be actively communicated

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Expand Brand Concept

• Traps
• Value Proposition
• Emotional Benefits
• Self-Expressive Benefits
• Brand Perspective
• Brand-as-Organization
• Brand-as-Person
• Brand-as-Symbol

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PG 1931

• Ivory was king
• 99 44/100 pure--It floats
• Camay
• No budget
• Lacked coordination and direction
• Lacked people who cared

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GE Appliances

• GE Monogram
• GE Profile
• GE Appliances
• Hotpoint
• RCA

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Marriott Brand Strategy

• Marriott
• Courtyard by Marriott
• Fairfield Inn by Marriott

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Marriott Brand Strategy

• Ritz Carlton
• Marriott Hotels
• Courtyard by Marriott
• Fairfield Inn by Marriott

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GE Appliances

• GE Monogram
• GE Profile
• GE Appliances

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Brand Challenges

• Brand identity?
• Clarity/synergy in brand systems?
• Silver bullets?
• Do employees/partners know and care?
• Emotional self-expressive benefits?
• Organizational intangibles?
• Brand personality?
• Symbols?

61
Brand Challenges

• Brand identity?
• Clarity/synergy in brand systems?
• Silver bullets?
• Do employees/partners know and care?
• Emotional self-expressive benefits?
• Organizational intangibles?
• Brand personality?
• Symbols?

62
Brand Challenges

• Brand identity?
• Clarity/synergy in brand systems?
• Silver bullets?
• Do employees/partners know and care?
• 5 Organizational intangibles?
• 6 Brand personality?
• Symbols?

63
Brand Challenges

• Brand identity?
• Clarity/synergy in brand systems?
• Silver bullets?
• Do employees/partners know and care?
• 5 Organizational intangibles?
• 6 Brand personality?
• Symbols?

64
Brand Challenges

• Brand identity?
• Clarity/synergy in brand systems?
• Silver bullets?
• Do employees/partners know and care?
• Emotional self-expressive benefits?
• Organizational intangibles?
• Brand personality?
• Symbols?

65
Silver Bullets

• Subbrand or brand that creates or changes
• the image of a parent brand
• Earnest and Julio Gallo Varietal
• San Jose Sharks
• Hyatt Business Portfolio

66
Silver Bullet

• Subbrand or brand that creates or changes
• the image of a parent brand
• Earnest and Julio Gallo Varietal
• San Jose Sharks
• Hyatt Business Portfolio
• NEC product features

67
GE Brand Strategy

• GE Jet Engines
• GE Capital
• GE Appliances
• GE Lighting
• 3-way
• Energy Choice
• Buglite

68
Saturn Core Identity

• World Class Car
• Treat Customers
• With Respect
• As a Friend

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Saturn Extended Identity

• Core
• World Class Car
• Treat Customer with Respect as Friend
• Extended
• US Compact
• Retail Experience
• Personality
• Committed Employees
• Springhill Plant

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A brand that captures you mind gains behavior. A
brand that captures your heart gains
commitment. Scott Talgo
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Hyatt Business Portfolio

• Business Plan
• Gold Passport
• Touch and Go
• Regency Club
• Meeting Connection

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IBM Brand

• 800 million communications
• Prior Lou Gerstner--10 to IBM brand
• After Lou Gerstner--50 to IBM brand
• A singly agency worldwide--OM

73
Silver Bullets

• Subbrand or brand that creates or
• changes the image of a parent brand
• Earnest and Julio Gallo Varietal
• San Jose Sharks
• American Express RoundTrip Services

74
Silver Bullets

• Subbrand or brand that creates or
• changes the image of a parent brand
• Earnest and Julio Gallo Varietal
• San Jose Sharks
• IBM ThinkPad
• American Express RoundTrip Services

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IBM Silver Bullets

• IBM ThinkPad TrackPoint

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American Express
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Brand Identity Traps

• Brand-is-an-island trap
• External perspective trap
• Product-attribute fixation trap

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Brand Identity Traps

• Brand-is-an-island trap
• External perspective trap
• Product-attribute fixation trap

79
Brand Identity Traps

• Brand-is-an-island trap
• External perspective trap
• Product-attribute fixation trap

80
Brand Identity Traps

• Brand-is-an-island trap
• External perspective trap
• Product-attribute fixation trap

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Brand-is-as-Island Trap

• Vertical extensions
• Silver bullets

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Brand-is-as-Island Trap

• Managing across markets
• Vertical extensions
• Silver bullets

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Brand-is-as-Island Trap

• Managing across markets
• Vertical extensions
• Silver bullets

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Brand-is-as-Island Trap

• Managing across markets
• Vertical extensions
• Silver bullets

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Brand-is-as-Island Trap

• The organizational brand
• Vertical extensions
• Silver bullets

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Brand-is-as-Island Trap

• The organizational brand
• Vertical extensions
• Silver bullets

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Brand-is-as-Island Trap

• The organizational brand
• Vertical extensions
• Silver bullets

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Vertical Extension Issues

• Another brand available?
• Extent of stretch?
• Qualitatively different offering?

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Brand-is-as-Island Trap

• Managing across markets
• Vertical extensions
• Silver bullets

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SONY

• Digital--Astonishing technology
• Dream--
• Engineers
• Suppliers/employees
• Customers--If you can dream it, we can make it
• Kids--Fun, entertainment, kid in all of us

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SONY Identity

• Core
• Digital--Astonishing technology
• Dream--Aspirational
• Kids--Fun, entertainment, kid in all of us
• Extended
• Quality
• Japanese
• Global
• Local
• Respect--Community/Environment

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Honda

• Japan
• Racing
• Youth
• Motor technology
• Quality

• United States
• Quality
• Broad age group
• Motor technology
• Racing

93
Brand Challenges

• 1. Brand identity?
• 2. Clarity/synergy in brand systems?
• 3. Silver bullet?
• 4. Do employees/partners know and care?
• 5. Emotional self-expressive benefits?
• 6. Organizational intangibles?
• 7. Brand personality?
• 8. Symbols?

94
Silver Bullet

• Subbrand or brand that creates or changes
• the image of a parent brand
• Earnest and Julio Gallo Varietal
• San Jose Sharks
• Hyatt Business Portfolio
• IBM ThinkPad

95
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Silver Bullets

• Subbrand or brand that creates or changes
• the image of a parent brand
• Earnest and Julio Gallo Varietal
• San Jose Sharks
• Hyatt Business Portfolio

97
Silver Bullet

• Subbrand or brand that creates or changes
• the image of a parent brand
• Earnest and Julio Gallo Varietal
• San Jose Sharks
• Hyatt Business Portfolio
• IBM ThinkPad

98
Brand Relationship
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Brand Relationship
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Silver Bullets

• Subbrand or brand that creates or
• changes the image of a parent brand
• Earnest and Julio Gallo Varietal
• San Jose Sharks
• IBM ThinkPad
• American Express RoundTrip Services

101
Brand Identity Traps

• Brand-is-an-island trap
• External perspective trap
• Product-attribute fixation trap

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Brand-is-as-Island Trap

• The organizational brand
• Vertical extensions
• Silver bullets

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Intel Logo
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Global Brand Management

• Global brand planning process
• Global brand communication system
• Systems to deliver implementation excellence
• Organizational synergy creating entity

105
Global Brand Management
Authority Level?
Top
Middle
Global Brand Team
Global Executive Team
Team
Who?
Brand Champion
Global Brand Manager
Person
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Global Brand Communication

• Meetings, internet
• Hands-on field visits
• Strategic planning group
• Global brand manager

107
Authority

• Imperative
  Adapt Discretion
• Logo/symbols
• Brand identity
• Communication
• strategy
• execution
• Pricing strategy

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Delivering Excellence

• Country brand teams
• Multiple agencies
• Local adaptation
• Measurement