Brand Management

Brand Management

Strategic Brand Management

Today:

• Strategic Marketing Fundamentals • Marketing Fundamentals • Strategic Brand Management

Individual Brand Extension Strategy

• 75%: 2500 word report and 25%: 750 word reflection • Due by 2pm on 21 January 2021

• As a brand management consultant, develop a brand extension strategy on a business of your choice in an industry you would like to/already work in.

• You won’t have inside knowledge as a consultant – so dig and rationalize assumptions using references

Structure

1. Assignment video on Blackboard

No Appendices!!

Brand vs Line Extension

Brand Extensions Line Extension

Business 101

Enterprise Value

ShareholdersCustomers

Society and Nature

Partners and Employees

Revenue Capital

Return on Investment Dividends & share price appreciation

Products/Services of value that exceed alternatives

Harmony

Sustainability

Process that creates value for customer and shareholder

Compensation and self-fulfillment

Donovan et al (1998)

Value Based Marketing

• Deliver a Unique Value Proposition (‘bundle of benefits’) perceived as superior by the firm’s target customers -- vis-à-vis competitive offerings.

SITUATION ANALYSIS

Simplifed Marketing Planning Process

OBJECTIVES

BUDGET

EXECUTION & CONTROL

EVALUATION Source: after Rothschild (1992)

MISSION / VISION

STRATEGIES & TACTICS

‘BCG; Ansoff; Porter’ STP; Marketing Mix

Getting Started with Strategy Situational Analysis: •Macro •Meso •Micro

PESTLE 5 Forces Strategic Capabilities Value Proposition

SWOT/TOWS

Strategic Market Planning

External Analysis * • Customers • Competitors • Markets • PESTLE

Key Success Factors

Opportunities and Threats

Internal Analysis * • Performance: - market; financial; processes; culture

• Strategic options • Portfolio analysis

Strengths and Weaknesses

Distinctive Capabilities

Evaluation and Choice of Strategy

Strategy Execution

The Brand Plan

‘What if?’ Scenarios

Source: after Aaker and McLoughlin (2007)

Vision, Mission

* Also called ‘‘Marketing Audit’ or ‘Situation Analysis’

What you possess that makes you better than Competitors. (‘SCAs’).

Points of difference

‘Must-haves’ to stay competitive.

‘Points of parity’

RBV and Strategic Capabilities

• Resources are the assets that organisations have or can call upon (e.g. from partners or suppliers),that is, ‘what we have’

• Core competences are the ways those assets are used or deployed effectively, that is, what we do well’.

• Threshold and Distinctive • Dynamic – ability to renew or recreate capabilities; of increasing

importance in today’s environment

• VRIN: value, rarity, inimitability, and non-substitutability

Unique Value Proposition

1. Who are our customers

2. What are their needs

3. At what price will we meet those needs?

SWOT

TOWS

‘Generic’ Value Strategies

High

High

Low

Low

P P

PX

‘QUALITY’

‘PRICE’

Premium Price / Price skimming

Price PenetrationEconomy

Danger !

Brand Audit

• ‘A comprehensive examination of a brand to discover its brand equity’ (Keller 2008)

• One aim of a brand audit is to identify the level of congruence between brand identity/vision and brand image/perception

• Create a framework – possibly through a mind map • Beneficial to start by revisiting your purpose, mission, values,

objectives etc to identify what is important for you to investigate and measure

• What do you think the customer perceives are your points of differentiation?

Potential Framework Factors:

Internal Research

• Value Proposition • Brand Promise/positioning statement • Brand Values • USP • Brand Story • Tone of Voice • Culture • Product/Service Positioning

Brand Identity

• Logos and other brand assets/elements

• Printed collateral, stationery, brochures, trade show materials etc

• Advertising • Examples of how your

brand has been used or displayed in the real world

Potential Framework Factors:

Brand Image/Perception

• Salience • Purpose, mission, values • Personality • Positioning • If we cease to exist tomorrow, what

will they be missing in their lives?

• At every customer touch point

Search

• Keyword research to understand product/brand search variance, seasonality, and competitor analysis

Social Listening

• What are your/competitor customers saying? • How do they describe the brand? • What problems does it solve? • How is it being used to inform identity? • Are they recommending/complaining

about it?

• Customer service? • What are they saying about the brand

elements/artefacts?

Brand Report Card – (Keller 2000)

1. The brand excels at delivering benefits customers truly desire

2. The brand stays relevant

3. The pricing strategy is based on consumers’ perceptions of value

4. The brand is properly positioned

5. The brand is consistent

6. The brand portfolio and hierarchy make sense

7. The brand makes use of and coordinates a full repertoire of marketing activities to build equity

8. The brand’s managers understand what the brand means to customers

9. The brand is given proper support, and that support is sustained

10. The company monitors sources of brand equity

Some Competitor Analysis Tools

• Comparing traffic, visitor behavior, keywords, rankings, paid ads, social metrics etc:

• Free trials: • Kompyte • SimilarWeb

• Proprietary Solutions: • Pi Datametrics – free market analysis reports

(Brandwatch 2019)

Brand Portfolios and Architecture

Advantages of Portfolio of Brands

• Increased chance consumers will buy a brand from company’s portfolio • Opportunity to exploit scale advantages • Opportunity to exploit strategic advantages • Allows a company to spread its risk • Synergy can improve profitability • Potential for brand/line extensions • Improved trade leverage, shelf space, share of

mind

Brand and Line Extensions

• Brand extension – Use of an established brand name to enter a new product category

• Line extension – Use of an existing brand name for a new offering in the same product category.

Extension Evaluations

Extensions should ‘fit’ with the core product (Aaker & Keller 1990; Boush & Loken 1991; Martin & Stewart 2001; Volckner & Sattler 2007)

Estes et al (2011)

• Taxonomic (categoric) similarity (Budweiser cola) and thematic similarity (Budweiser crisps)

• Thematic brand extensions are processed more rapidly judged more novel, and evaluated more positively than taxonomic extensions

• When asked to consider the commonalities between brand and extension, however, taxonomic extensions are judged more novel and evaluated more positively

Keys to Successful Brand Extensions Brand

Concept Resources

Consumers’ needs

Competition

Extension

Fit

Relevance Sustainable Advantage

Keller 2013

Innocent

Brand Architecture

Definition:

• “An integrated process of brand building through establishing brand relationships among branding options in the competitive environment.” Rajagopal and Sanchez (2003)

• Describes how a ‘family of brands’ within a company’s portfolio are related to, and differentiated from, one another.

• The architecture should define: • the different levels of branding within the organization; • how the corporate brand and sub-brands relate to and support each other; and • how the sub-brands reflect or reinforce the core purpose of the corporate

brand to which they belong.

Brand Architecture

• Concerned with how to manage a parent brand, and a family of sub-brands.

• Indicates how many levels of branding there are (hopefully, no more than two or three), which brands are at each level, which brands relate as brand/sub-brand, which relate as endorsed brand/endorsing brand and which remain independent of one another.

• Addresses which brand’s identity systems are dominant in different situations or contexts. And it addresses the type of names used at each level

• Laforeˆt and Saunders (1994)

• Image: LAB brand (2017)

3 Key Levels of Branding

1. ‘Parent brand’: Corporate brand, umbrella brand, and family brand Examples include Virgin Group and Heinz.

2. Endorsed brands, and sub-brands Examples include Nestle KitKat, Cadbury Dairy Milk, Sony PlayStation or Polo by Ralph Lauren.

3. Individual product brand For example, Procter & Gamble’s Pampers or Unilever's Dove.

Kapferer (1994)