Everyone brands
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Manufacturers
Retailers
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Private
Store
Wholesalers
Services
Malls
HED 460

What is a brand?
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A name
A symbol
A product
A store
A promise the consumer can trust
A key asset
HED 460

What is a brand?
(Tangibles)

AMA – American Marketing Association
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“A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other seller’s.”
HED 460

What is a brand?
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Cow fits definition – is it a brand?
What if Mercedes becomes Dolores – will it no longer be a brand?
If Pentium becomes Intellect (rejected candidate name), will it sell less?
HED 460

What is a brand?
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Cow is not a brand, but a product class
Guernsey or Holstein might represent product forms
Symbol burned into cow’s hide to identify the cows of a particular owner is a brand
HED 460

80
70
60
50
40
30
20
10
0
Why Consumers use Brands
78
59
47
Facilitate
Quality
Image
Reasons HED 460

Shop fewer stores
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1980 – 3.5 stores
1990 – 2.75 stores
1995 – 2.2 stores
2000 – 1.2 stores
HED 460

Brand as asset – (Intangibles)
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Brands have equity
 perceived to have value beyond what the products/services/stores they are attached to produce in sales and profits
Brands can be more lasting than assets of factories, warehouses, stores
Brands may appreciate rather than depreciate
Brands are portable
HED 460

Measuring brand equity


Value stockholders place on a brand

Market share, customer loyalty, market penetration, lifetime value of a customer
Consistently deliver on their promise
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The Gap
Home Depot
Amazon.com
HED 460

What threatens brand equity?
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Low or inconsistent quality
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Michelob (Where you’re going, it’s Michelob)
Extending into inappropriate channels
Lack of innovation
Not differentiating
Not meeting consumer expectations
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“every point of customer contact ”
HED 460

Planning Brand Strategy
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Know your core business
Develop 3 interrelated strategies
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Positioning
Personality

Affiliation
Communicate brand strategies
HED 460

Company performance
160
140
120
100
80
60
40
20
0
Sales Profit Stock
All Retail
The Gap
Home Depot
Amazon
HED 460

1. Positioning strategy
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The niche a brand occupies in consumers’ minds
Maintain parity with competitors AND differentiate
Must define 3 things
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 target audience competitive frame of reference meaningful differentiation point
HED 460

Motel 6 positioning

For frugal people , Motel 6 is a comfortable night’s stay at the lowest price of any national
chain.
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Target audience
Competitive frame of reference
Meaningful Differentiation point
HED 460

Develop positioning strategy
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For ( target audience ), your brand is a ( competitive frame of reference ) that provides
( meaningful differentiation point ).
Is it a brand? Not just a store name.
Group members’ names – IC #5
HED 460

Positioning examples
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Product superiority, maintain service
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Mercedes-Benz, Sony
Excel in service, hold own in quality
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Nordstrom, Saturn
Superior use of user imagery, adequate or strong performance

Calvin Klein, Harley Davidson
HED 460

2. Create Brand Personality
Strategy
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Set of human traits brand portrays in its relationship with its customers
Character or personality that predicts what to expect
“that sounds like a __________ ad”
Motel 6 personality strategy
Deliver brand personality at every point of contact
HED 460

3. Manage Brand Affiliation
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How you think others will perceive you if they know you use a particular brand?
Prevent negative or limiting perception
Motel 6 example
Bic example
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 ballpoint pens - 1950’s disposable cigarette lighters - 1970’s disposable razors - 1980’s
Perfume - 1989 - “Paris in your pocket” HED 460

For Global
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Homogenous tastes
Economies of scale
Small markets get their share
Brand effectiveness can be improved
Against
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Local market tastes/pref. ignored
Choices and effectiveness diluted for global appeal
Local regulations and restrictions
HED 460

Cyberbranding
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Strong brand can provide powerful advantages, esp. initially
Branding is more complex
 creating an experience that potential buyers interact with
Reach and interactivity are increased
Victoria’s Secret example
HED 460

Brand Extension
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New products
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Williams-Sonoma’s Pottery Barn catalog launched
Pottery Barn Kids
L.L. Bean launched L.L. Home
New customers

Abercrombie & Fitch launched abercrombie
New formats

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Avon to Avon.com, mall-based kiosks, Avon spa
Delia’s direct marketer, stores, Internet
HED 460

Brand Extension

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New Channels

Starbucks, license with Kraft for supermarkets
New Businesses
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Tesco now offers natural gas to customers
Nordstrom is into financial services
HED 460

Rational Branding

Something of value is given in exchange for information

Build your own…...
HED 460

Rational Branding
HED 460