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hellbringer
Ch13.pptx
Brand Management 260 Chapter 13
MANAGING BRANDS OVER TIME
“Products have limited life cycles, but brands -- if managed well -- last forever.”
Jean-Marie Dru, Author of “Disruption”
Managing Brands Over Time
Effective brand management requires taking a long-term view of marketing decisions.
Any action that a firm takes as part of its marketing program has the potential to change consumer knowledge about a brand.
These changes in consumer brand knowledge from current marketing activity also will have an indirect effect on the success of future marketing activities.
Today’s Agenda
Reinforcing Brands
Revitalizing Brands
Reinforcing Brands
Reinforcing Brands
Generally, we reinforce brand equity by marketing actions that consistently convey the meaning of the brand to consumers in terms of Brand Awareness and Brand Image.
Consumer response to past marketing activity
Consumer response to future marketing activity
Consumer response to current marketing activity
Brand awareness and brand image
Changed brand awareness and brand image
Questions to the Marketers
The Brand Meaning
Brand Awareness
What products does the brand represent?
What benefits does it supply?
What needs does it satisfy?
Brand Image
How does the brand make products superior?
What strong, favorable & unique brand associations exist in the customers’ minds?
1. Brand Awareness
What products does the brand represent, what benefit does it supply, and what needs does it satisfy?
Kellogg’s Nutri-Grain has expanded from cereals into granola bars and other products, cementing its reputation as “makers of healthy breakfast and snack foods.”
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2. Brand Image
How does the brand make those products superior?
What strong, favorable, and unique brand associations exist in the minds of consumers?
Through product development, Apple Computer (now Apple Inc.) has transformed from a computers manufacturer to a stylish consumer electronics brand, reinforcing its brand association as “Tools for creative minds”
Market Leaders & Failures
From the perspective of maintaining consumer loyalty, inadequate marketing support is a dangerous strategy when combined with price increases.
Brands such as Budweiser, Coca-Cola, Hershey, and Marlboro have been remarkably consistent in their strategies once they achieved a preeminent market leadership position.
Consistency & Change
Consistent marketing support in amount and nature.
Tactical shifts and changes to maintain the strategic thrust and direction of the brand.
Despite tactical changes, certain key elements of the marketing program are always retained..
Keep certain key creative elements in marketing communication to create Advertising Equity
Retro-branding or retro-advertising have enduring meaning with older consumers and can be made to seem relevant to younger consumers.
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Protecting Sources of Brand Equity
Brands should always look for potentially powerful new sources of brand equity.
Nevertheless, a top priority under these circumstances is to preserve and defend those sources of brand equity that already exist.
Procter & Gamble’s Cascade (i)
For a cost-saving reason to roll out its value-pricing initiative, Procter & Gamble made a minor change in the formulation of its Cascade automatic dishwashing detergent.
As a result, the product was not as effective as it previously had been.
Procter & Gamble’s Cascade (ii)
One of the key P&G’s competitors, Lever Brothers, discovered the fact.
Lever Brothers launched a comparative ads for its Sunlight brand featuring side-by-side glasses that claimed, “Sunlight fights spots better than Cascade”.
“Virtually spotless” was a key brand association and source of brand equity for P&G’s Cascade.
P&G immediately reverted to its original formula.
P&G forced the Lever Brother stopped running its Sunlight’s ads via a legal action.
Fortifying vs. Leveraging
Be aware of tradeoffs between marketing activities that attempt to fortify and further contribute to brand equity and marketing activities that attempt to leverage or capitalize on existing brand equity to reap some financial benefit.
The more that there is an attempt to realize or capitalize on brand equity benefits, however, the more likely it is that the brand and its sources of equity may become neglected and perhaps diminished in the process.
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Fine-Tuning The Programs
Changing brand tactics when they are no longer making the desired contributions to maintaining or strengthening brand equity.
Product-Related Performance Association
Innovation in product design, manufacturing, merchandising is critical for performance-based brands.
Non-Product-Related Imagery Association
Relevance in user and usage imagery.
Advertising plays a key role in building brand equity.
Marlboro : Case Study
Marlboro in the 1920s Discerning Feminine Taste
In 1924, Philip Morris introduced Marlboro as a women's cigarette based on the slogan: "Mild as May“.
Marlboro ads (1927) published in Vanity Fair Magazine targeted the affluent society woman with text that stated: "Women quickly develop discerning taste.”
Marlboro in the 1950s The Rise of Filtered Cigarettes
To compete with Winston, Philip Morris created a filter tipped cigarette of its own with a Flip-Top Box new packaging.
Instead of introducing a new brand, the company discontinued the original Marlboro Cigarettes and used the name for its new filter tipped cigarettes.
Marlboro in the late 1950-60s The New Masculine Trademark
Using real cowboys forged an authenticity that branded the product as genuine, tough, rugged and associated with the mythical hero of the American West.
The Marlboro Country
Since the mid-1970s, Marlboro has been America’s number one cigarette brand.
The romantic images of the rugged cowboy and “Marlboro Country” have since been taken worldwide and even successfully transferred to billboards and print ads without showing a product.
Innovation in product
design, manufacturing
& merchandising
Relevance in user
and usage imagery
Consistency in amount and nature
of marketing support
Continuity in brand meaning; changes in marketing tactics
Trading off marketing
activities to fortify vs. leverage brand equity
Protecting sources
of brand equity
Brand Awareness
What products does the brand represent?
What benefits does it supply?
What needs does it satisfy?
Brand Image
How does the brand make products superior?
What strong, favorable, and unique brand associations exist in customers’ minds?
Revitalizing Brands
Revitalizing Brands
Expanding the depth and/or breadth of awareness by improving consumer recall and recognition of the brand during purchase or consumption settings.
Improve the strength, favorability, and uniqueness of brand associations—either existing or new—making up the brand image.
Strategies to Revitalize Brands
Expanding Brand Awareness
Breadth challenge
Improving Brand Image
Repositioning the brand
Changing brand elements
Entering New Markets
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1. Expanding Brand Awareness
Increasing the depth of brand awareness
Increase quantity of consumption (How much)
Increasing the breadth of brand awareness
Increase frequency of consumption (how often)
With fading brands it is the breadth that poses a bigger problem as consumers tend to think of the brand in very narrow ways.
Increasing Usage
Increasing the level or quantity of consumption
How much?
Demonstration in toothpaste commercials
Recommended by Dentists
Promoted in advertisement
Increasing the frequency of consumption
How often?
“Food goes better with Coke”
Identifying New or Additional Usage Opportunities
Communicate appropriateness and advantages of using the brand more frequent use in current or new situations
Reminders to consumers to actually use the brand as close as possible to those situations
Some brands are seen as for only specific or special occasions
e.g.: Chivas Regal - “What are you saving your Chivas For?”
Perceptions and reality of usage differ
e.g.: Batteries with inbuilt indicators of power, toothbrushes that change color
Identifying New and Completely Different Ways to Use the Brand
Encouraging variety of new usages
Campbell’s advertise recipes that use their branded products in entirely different ways.
Finding creative new usage application for a product
Arm & Hammer baking soda’s deodorizing and clearing functions.
Clorox’s benefits in eliminates kitchen odors.
Positioning as a substitute of other products
Wrigley’s chewing gum as a substitute to smoking.
Tums antacid tablets promote its benefits as a calcium substitute.
2. Improving the Brand Image
Brand Association
Strength
Favorability
Uniqueness
Repositioning or recommitment to the existing positioning.
Bolstering faded positive associations
Neutralizing negative associations
Creating additional positive associations
Repositioning a Brand
Establishing more compelling Points of Difference that consumers might have taken for granted.
In some cases, a key point of difference may turn out to be nostalgia and heritage rather than any product-related difference.
Other times we need to reposition a brand to establish a Point of Parity on some key image dimension.
Revitalizing Gucci
Gucci's brand was revitalized between the mid-1990s and early 2000s.
Tom Ford, the edgy designer, acted as Gucci’s creative director from 1994-2004.
Ford remade Gucci as a stylish, sexy, and exclusive fashion label
Its slick, skin-flaunting designs such as open-to-the-navel silk shirts were popularized by celebrities such as Madonna.
Changing Brand Elements
Conveying new information or signaling that the brand has taken on new meaning.
Brand name is the most important brand element and most difficult to change.
Nevertheless, names can be dropped or combined into initials to reflect shifts in marketing strategy or to ease pronouceability or recall.
Changing Brand Name & Logo
Kentucky Fried Chicken took an attempt to convey a healthier image in 90s.
The brand name was abbreviated to the initials KFC.
Image of Colonel Sanders still was still maintained as a means to the tradition but also modernized its appeal.
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1978
1997
1991
Create New Sources of Brand Equity
Mountain Dew was first introduced with a countrified tagline “Yahoo Mountain Dew! It’ll tickle your innards.” in late 60s
The outdoor image was transformed to extreme sports in the 90s
Its radical new brand image successfully attracted the urban young adults.
3. Entering New Markets
Option 1:
Abandon the consumer group that supported the brand in the past to target a completely new market segment.
Johnson & Johnson’s baby shampoo – Promote the gentleness and everyday applicability to the adults rather than babies.
Option 2:
Identify neglected segments & attract new customers
Van Huesen – advertising in women’s magazines.
Nike and Gillette's women range of products.
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Refresh old sources
of brand equity
Create new sources
of brand equity
Expand Depth &
Breadth of awareness
+ usage of brand
Increase quantity
of consumption
(how much)
Increase frequency
of consumption
(how often)
Improve strength,
favorability, and
uniqueness of brand
associations
Bolster fading associations
Neutralize negative
associations
Create new associations
Identify additional
opportunities to
use Brand in Same
basic way
Identify completely
new and different
ways to use
Retain vulnerable
customers
Recapture lost
customers
Identify neglected
segments
Attract new
customers
