4 - Branding
BUILDING A SUCCESSFUL BRAND
BRAND POSITIONING
To dissect current brand position and create new brand position
Brand domain: Where it competes in the marketplace:
ENERGY DRINKS MARKETPLACE FOR 16-30 YEAR OLDS (xx)
Brand heritage: the background/culture & how it achieved its sucess
SECRETIVE BUZZ MARKETING WORD OF MOUTH EDGINESS (xx)
Brand values: the core values and characteristics
GIVING BACK TO THE CLIENT, 2 WAY RELATIONSHIP ANTI-BRAND
Brand assets: what makes it distinct, logo, strapline, relationship
RED BULLS HEAD-ON LOGO, IT GIVES YOU WINGS, IT SUPPORTS ITS
CUSTOMERS PURSUITS FOR THE COMPETITIVE EDGE
Brand personality: the character of the brand if it were a person/object
IF IT WERE A PERSON IT WOULD BE THE LIFE AND SOUL OF THE
PARTY, WITTY INTELLIGENT AND FUN TO BE AROUND. IF IT WERE A
VEHICLE IT WOULD LEADING THE REST OF THE PACK INTO SPACE. IF
IT WEREANANIMAL IT WOULD BE ABULL
Brand reflection: how it relates to self identityand how trhe consumer
feels about themselves as a consequence of consuming it
ENERGIZED, REFRESHED, RECHARGED, ANTI-ESTABLISHMENT, EDGY,
HIP, FIT
INTERNAL MARKETING AUDIT
Something that may or may not confer a customer
benefit but provide a level of functional ity
Taurine, caffeine filled sweetness, in a small can,
Used to revisit and refine the strategy based on changing marketplace
OPERATING RESULTS – by Product, customer, geographic region:
Sales:
MARKETING COMMS
Market Share:
Profit Margins:
OBJECTIVES
Costs:
Strategic Issues Analysis:
Marketing Objectives:
Market Segmentation:
Competitive advantage:
WHO WHAT AND WHY OF PRODUCT
Core competencies:
Positioning:
POSITION AND BRAND
Portfolio Analysis:
Who buys Red Bull?:
Marketing Mix Effectiveness:
Product: Who is it for (demographics)
Product:
GEN YERS, ADRENALIN SPORTS JUNKIES
Price:
Positioning: How/when is it used
The Marketing Plan
Promotion:
WHEN TIRED AS A PICK ME UP
1.
Executive summary
Distribution:
Branding: Users attitudes, lifestyle, psychographics
2.
Objectives
Marketing Structures:
SEE “BEHAVIOURAL SEGMENTATION”
3.
Product/market
Marketing organization
background
Marketing Training:
What are they buying?:
4.
S.W.O.T.
Intra/Interdepartmental comms:
Product: What will it do? (physical characteristics)
5.
Analysis
Marketing information systems:
REHYDRATE, INVIGORATE, ADD CAFFEINE AND TAURINE INTO
6.
Strategies
Marketing Planning System:
THE BLOODSTREAM VIA A VISCOUS SWEET SYRUPY LIQUID JOLT
7.
Forecasts
Marketing Control System:
8.
Marketing Programmes
Positioning: Its benefits in use
9.
Financial implications
AIDS CONCENTRATION, KEEPS YOU GOING, INVIGORATES,
10.
Operational
STIMULATES MIND AND BODY, GIVES YOU THE COMPETITIVE
implications
EDGE. WILL MAKE YOU STAND OUT FROM THE USUAL CROWD.
11.
Appendices
Branding: Its character/personality
IF IT WERE A PERSON IT WOULD BE THE LIFE AND SOUL OF THE
PARTY, WITTY INTELLIGENT AND FUN TO BE AROUND. IF IT WERE
A VEHICLE IT WOULD LEADING THE REST OF THE PACK INTO
SPACE. IF IT WEREANANIMAL IT WOULD BE ABULL
THE MARKETING CONCEPT
Augmented Product Features:
Why should they buy Red Bull?:
Added values and benefits that work on the
emotional needs of the user
It keeps you awake and reinvigorates tired users
Its part of an edgy sub culture
It gives you the competitive edge
Product: Why use it? (benefits)
INSTANT EFFECT, LOW RISK PURCHASE, CLEAN AND SAFE,
ALWAYS AVAILABLE. PART OF A COOL SUBCULTURE
Positioning: How our claims are justified
TRIALLEADS TO REPEAT PURCHASES, IT WORKS AND ALL THE
HIP PEOPLE SAY IT ANS THEREFORE IT MUST BE SO
Branding: What makes our product different
THIS BRAND GIVES BACK MORE THAT 30% OF ITS TURNOVER TO
SPORTS EVENTS AND GIVE AWAYS.. IT CREATED THE GENRE OF
ENERGY DRINK AND ARE HAPPY TO BE AN ANTI-BRAND
WHEN PRODUCT BECOMES BRAND
Core product:
The commodity and its offering
ENERGY DRINK IN A CAN
Actual Product Features:
Core product + Functional
features+ Augmented extras =
brand
7 WAYS OF POSITIONING
Creative positioning of the brand in the
consumers mind
Characteristics: IT GIVES YOU WINGS AND
GIVES YOU ENERGY (4-4)
Price: PREMIUM PRICED AND CONTROL OF
SUPPLY DENYING ACCESS TO SOME (4-1)
Product Use: ASSOCIATION OF RB AS THE
BEST WAY TO GET A PICK ME UP – CANVAN,CLUBBERS (7-2), (4-5)
User: LINKED TO THRILL SEEKERS AS
BATTLEFIELD WARFARE STRATEGIES IN MARKETING
PRIMARY USER (4-5)
Offensive marketing warfare strategies are strategies designed to obtain some
4C’s of POSITIONING
Product Class: RB SEE IT IN A CLASS OF
objective, usually market share, from a target competitor. In addition to market share, an
is the choice of target market & segment (where we want to
ITS OWN (9-5)
offensive strategy could be designed to obtain key customers, high margin market
compete) and differential advantage (how we want to compete)
Symbols: HERCULES/TWO RED BULLS =
segments, or high loyalty market segments.
Clarity: positioning idea must be clear in terms of target market and POWER (4-4)
Frontal Attack - This is a direct head-on assault. It usually involves marshaling all your
differential advantage.
Competition: COMPARISON TO RIVALS –
resources including a substantial financial commitment.
WE WILL BRING PEOPLE TO THE PRODUCT NOT PRODUCT TO MORE THAN A DRINK IT’S A WAY OF LIFE
Envelopment Strategy (also called encirclement strategy) - This is a much broader but
THE PEOPLE, THOSE WHO NEED AN ENERGY BOOST (5-2)
(5-2)
subtle offensive strategy. It involves encircling the target competitor
Consistency: a repeated message that has a high recall rate and
Leapfrog strategy -This strategy involves bypassing the enemy’s forces altogether. In the
does not create confusion will strengthen the brand:”
business either develope new technologies, or create new business models.
RED BULL GIVES YOU WINGS – UNCHANGED MESSAGE PLUS
Flanking attack - This strategy is designed to pressure the flank of the enemy line so the
THE REGIONAL BRAND BIBLE
flank turns inward. You make gains while the enemy line is in chaos.
Credibility: ensuring there is enough belief/trust in the brand
Defensive marketing warfare strategies are strategies designed to protect your
message. Incompatibility between brand and message can damage it
market share, profitability, positioning, or mind share.
ASSOCIATION VIA HEAVY INVESTMENT, WITH ADRENALINE
Position defense - This involves the defense of a fortified position. such as barriers to
SPORTING ACTIVITIES
market entry around a product, brand, product line, market, or market segment.
Competitiveness: differential advantage is to offer more than
Mobile defense - This involves constantly shifting resources and developing new
others in same class
strategies and tactics. Introducing new / replaced/modified products, changing market
“BRANDED MARKET” (9-5), “RB IS A WAY OF LIFE” (5-1),
segments, changing target markets, repositioning products, or changing promotional focus
“THOSE WHO LOVE OUR STYLE COME TO US”(5-2)
R
RB KEPT CHANGING THEIR STRATEGIES DEDICATING 2 DAYS A WEEK (8,5)
Flank position - This involves the re-deployment of your resources to deter a flanking
POSITIONING ERRORS
attack.
Underposit: No clear identity in the eyes of the customer
Counter offensive - This involves countering an attack with an offense of your own - If a
REPOSITIONING
Overposit: Buyers have too narrow an image of brand
competitor introduces a new product, retaliate with a fighting brand
Confused posit: Too many claims made for brand to supportChange in taste/poor sales performance forces it.
Pre-emptive strike - This is a “defensive” attack initiated because an enemy attack is
Involves changing target market, differential
Doubtful posit: Lack of credibility in the eyes of the buyer advantage or both.
believed to be imminent.
Strategic withdrawal - This involves freeing your resources deployed in untenable
Image repos: keep product and market same but
ABC OF MARKET POSITIONING change image. In some markets products are a form
positions - this can entail dropping unprofitable products, product lines, or brands
Attributes: Distinguishing Qualities, characteristsics
Guerrilla marketing warfare strategies are strategies designed to wear-down the
of self expression – make it cool
CAFFEINE, CAN OF DRINK
Product repos: Product changes but market remains enemy by a long series of minor attacks.
Benefits: comparative advantage of product
1) targeted legal attacks on the competition RED RHINO (9,5)
same. Divesting certain services/products without
LEGAL HIGH, KEEPS YOU AWAKE
2) product comparison advertising
leaving market.
Claims: communications of specific claims and benefits to Intangible repos: try different market segment with
3) executive raiding
consumer
4) short-term alliances CADBURY SCHWEPPES IN OZ (4,3)
existing product. Lucozade went from sick kids to
GIVES YOU WINGS IMPLIED THAT SPEED AND REACTIVITY
5) selective price cuts
super fit sportsmen. RB TARGETS OLDIES MARKET
WERE ENHANCED, VITALIZES BODY AND MIND, CLAIMS
6) deliberate sabotage of competitions test markets, research, campaigns, or promotions
VIA MUSEUMS (11,1), FLUGTAG (, FORMULA F1
IMPROVED CONCENTRATION
7) orchestrating negative publicity for a competitor
Tangible repos: change both product and Market
The undifferentiated norm
3 - Integrated Marketing – The MARKETING MIX
CHANNEL DISTRIBUTION STRATEGY
PRICE (STRATEGIES)
Selection: Influenced by buyer behaviour, willingness of intermediaries to help
Market Penetration: low entry price to gain market share
REQUESTED A DEDICATED SALES FORCE(3-5), PULL MARKET MADE IT APPEALING TO ALL 23 OTHER RB COMPETITORS DID THIS TO FIGHT
AS THE RETAIL OUTLETS OFFERED ATTRACTIVE MARGINS
FOR LOWER ORDER OF LATE MAJORITY
BY GOING TO SMALL WHOLESALERS THEY WERE FASTER TO MARKET AND HAD
CONSUMERS
LEVERAGE OVER THE APPROACH THAT WAS TAKEN TO GET IT INTO THE RETAIL OUTLETS. Market Skimming: High initial price to capitalise from
OFTEN GOING TO THE CONSUMER THEMSELVES TO GENERATE A DEMAND IN ADVANCE
those that ARE willing to pay a premium. Once exhausted
OF SETTING UP SUPPLY CHAIN AND SHOWING PREFERENCE FOR ONE OVER ANOTHER
the price is lowered to attract interest from price
Intensity: saturation in all retail outlets or selective method of target distribution
conscious – SALES IN PETROL STATIONS AND BARS
SELECTIVE SALES STRATEGY LEADS TO EXCLUSIVE DISTRIBUTION (3-5), VENDING
KEPT PRICES HIGH – THIS ATTRACTED
MACHINES (4,3) SCHWEPPES ALLIANCE (4,3)
COMPETITORS WHO COULD SEE AN OPPORTUNITY
Integration: How involved are the manufacturer and channel distribution
TO CUT THE MARGIN OFFER AN EQUIVALENT AND
PORTERS 5 FORCES RB HAD ADVANTAGE OF SUPPLIER POWER OF DISTRIBUTION CHAIN GAIN MARKET SHARE. THE ENTRY OF
COMPETITON INTRODUCED ELASTICITY INTO
THEIR PRICING MODEL AND FORCED THEM TO
DISTRIBUTION CHANNELS
DROP THE PRICE
Early Cash Recovery: achieve minimum payback period
for NPD
Product Line Promotion: Profit from a range of products
is netted across them and calculated into the sell price
Differential: discriminatory factors like region for sale,
bulk buy discount
Product line pricing: strategy surrounding an entire
range (premium priced)
PUSH VS PULL
Competitive: Lowering price to increase market share
and benefit from economies of scale as production
increase to meet sales demand
Sales Maximising: Economies of scale keep price keen
and acts as a barrier to market for competitors
4P’s: Product, Price,
Place, Promotion.
+ Process, People &
Physical
environment/evidence
MARKETING ORIENTATED
PRICING
PRODUCT LAUNCH STRATEGIES
PROMOTION MIX
Personal Selling (oral comms to make a sale)
LOCAL SALES REPS AND SMALL DISTRIBUTORS (3-5)
LESSONS LEARNED FROM PETROL STATIONS (3-2)
FAST PATH TO MARKET VIA INDIVIDUAL ACCOUNTS (4-3)
STUDENT BRAND MANAGERS SPREAD THE WORD (7-5)
Publicity or PR (free promotion in press)
THE AUGMENTED PRODUCT
RUMORS NEVER HURT – BULLS BALLS (8-2)
HEALTH CONCERNS AND LEGAL ACTION (8-3)
CLAIMS OF SEXUAL POTENCY DRUG LINKS (8-1)
SPORTS, MUSIC ART EVENTS GENERATE PR AS BYPRODUCT
OF MAIN AIM TO GIVE BACK
Sponsorship (support the influencers/heroes)
IN-CROWD WANT TO COPY THE HERO DJ (4-1)
RED BULL MUSIC ACADEMY (5-4)
GLOBAL EXTREME SPORTS EVENTS (5-3)
RED BULL BC1 BREAKDANCE COMPETITION (6-3)
Sales Promotion (incentives to consumers)
FREE DRINKS TO HERO DJ’S (7-4)
FREE CASES TO STUDENT BRAND MANAGERS (7-5)
TRUCK WITH FRIDGE FOR “THOSE IN NEED…” (7-2)
DIFFERENTIAL
ADVANTAGE
Direct Marketing (personal, targeted, specific)
MERCHANDISE TO KEY INDIVIDUALS (4-1)
FAIL – PLAYSTATION LOGO PLACEMENT (7-4)
BUZZ MARKETING AT ANTI-BRANDERS (4-5)
Advertising (paid communications)
COST DRIVERS
LESS PRINTED MEDIA & MORE BUZZ MARKETING (4-5)
LATER USE OF TV/CINEMA ADS (11-2)
QUIRKY CARTOONS OCCASIONALLY USED (4-4)
MEDIA PUSH ONLY HAPPENS IN MATURE MARKETS IT IS NOT
A TOOL FOR ESTABLISHING THE MARKET BUT FOR REINFORCING
SUMMARY:
VIRAL MARKETING (WORD OF MOUTH) WAS THEIR SUCCESS,
CREATING A BUZZ IN THE STUDENT COMMUNITIES. GRASS
ROOTS ADVERTISING IN THEIR PERSONAL SPACES
(UNIVERSITY PRESS). SELLING TO A SCEPTICAL MARKET
THAT REJECTED TRADITIONAL MASS MARKETING MEANT
THAT THE TAILORED MIX SUITED THEM.
USING IT AS MUCH AS A TOOL FOR INCLUSION, THE ANTIBRANDERS CARRIED THE RB FLAG INTO EVRY CLASSROOM,
CLUB, GIG & EVENT ACROSS THE LAND
PRODUCT (Satisfies customer wants/needs)
Attributes:
Tangible: Availability and delivery, Performance/ features, Price,
Design/quality, material properties of the product
Intangible: Image/reputation, perceived value, guarantees/ service
support, immaterial properties
Satisfaction Levels in product:
Core Benefit: The main offering – REVITALISES MIND AND BODY
(XX)
Generic: The undifferentiated norm
Expected: The givens in the product, features, quality level
Augmented: additional benefits – Delivery/Credit, warranty, aftersales
Potential: possible augmentations in the future
Aspects:
Physical: what the product is
Functional: what the product does YOUR NEED
Symbolic: What it means to have the product
Categorisation - customers ability to judge product
Search: Customer can easily discern, evaluate and compare (size,
shape, colour)
Experiences: Cannot be discerned until the customer has used it (taste
in case of food)
Credence: Cannot be evaluated as they vary on each occasion
(restraint service) or a pet food as it cannot be easily evaluated
Categorisation – features & performance of product
Breakthrough: Radical performance advantage, drastically lower prices
or both
Improved: Not different to others just obviously superior but at a
competitive price
Competitive: No innovative advantage, attracts due to compromise of
cost and performance
PROMOTION
COMPETITIVE ADVANTAGE
PLANNING AT PRODUCT LEVEL
The promotional blend to communicate with target audience. Use
Differential advantage to beat the competition.
1.Marketing Strategy: “RED BULL ISN’T A DRINK IT’S A WAY
OF LIFE ” (5-2)
2.Positioning statement: 4C’s
3.Communications decisions:
a) Identify target audience: 18-30YRS THRILL SEEKERS (7-6)
b) Set comms objectives: “RED BULL ISN’T A DRINK IT’S A
WAY OF LIFE ” (5-2)
c) Create message: GIVES YOU MORE ENERGY,
CONCENTRATION OR SEXUAL VIRILITY
d) Select promotional mix: BUZZ MARKETING
e) Set promo budget: 35% OF TURNOVER REINVESTED (5-2), 2
DAYS PER WEEK SPENT ON BRAINSTORMING NEW IDEAS (
4.Execute integrated marketing comms strategy
a) Seed the market: GIVE INNOVATORS FREEBIES
b) Target the audience: PROMOTE NEAR PLACES THAT NEED
ENERGY – CLUBS GYMS TRUCK-STOPS
c) Build the prestige: OF THE COMPETITIONS BY POURING
MORE MONEY INTO THEM AND NOT LETTING THEM FIZZLE OUT
-MUSIC FESTIVALS, SPORTING AND ART COMPETITIONS
5.Evaluate integrated marketing comms strategy
“IN THE WORST CASE IF IT DOESN’T WORK WHAT HAVE I
LOST? PRIDE, MONEY – ALL CAN BE REPLACED. THE
CHALLENGE IS TO BUILD A MYSTIQUE” – IN REFERENCE TO
FUTURE FOR RB (11-5)