Matakuliah : J0504 - Strategi Pemasaran
Tahun
: 2009
Strategic Brand Management
Pertemuan 16
Buku 1 Hal: 290-314
Learning Objective
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Innovation as a Customer Driven Process
New Product Planning
Idea Generation
Screening, Evaluating, and Business Analysis
Product and Process Development
Marketing Strategy and Market Testing
Commercialization
Variation in the Generic New Product Planning
Process
Bina Nusantara
Product Life Cycle Analysis
Relevant issues in PLC analysis include:
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Determining the length and rate of change of the
PLC
Identifying the current PLC stage and selecting the
product strategy that corresponds to that stage
Anticipating threats and finding opportunities for
altering and extending the PLC
BRAND EQUITY
Company/Customer Value
of Brand Name and
Symbol of
a Product
Determined by the
brand’s set of
assets (and liabilities)
Brand Equity
Effective strategic brand management requires that we
understand brand equity and evaluate its impact when
making brand management decisions:
“Brand equity is a set of brand assets
and liability linked to a brand, its name,
and symbol, that add to or subtract
from the value provided by a product or
service to a firm and/or to that firm’s
customers.*
Measuring Brand Equity. Several measures are needed
to capture all relevant aspects of brand equity.**
• loyalty (price premium, satisfaction/loyalty),
• perceived quality/leadership measures (perceived
quality, leadership/popularity),
• associations/differentiation (perceived value, brand
personality, organizational associations),
• awareness (brand awareness), and
• market behavior (market share, price and
distribution indices).
These components provide the basis for developing
operational measures of brand equity.
BRAND IDENTITY STRATEGY
Brand identity is a unique set of brand associations that the brand
strategist aspires to create or maintain. These associations represent
what the brand stands for and imply a promise to customers from the
organization members.*
Four Brand Identity Perspectives
Product
Organization
Person
Symbol
Private
Branding
Specific
Product
Line
of
Products
BRAND FOCUS
Combination
Branding
Corporate
Branding
Strategies for Improving Product Performance
Cost
reduction
Add
new
product(s)
Product
improvement
Product line
Strategy
Alter
marketing
strategy
Eliminate
specific
product(s)
MANAGING THE BRAND PORTFOLIO
Leverage
Commonalities to
Generate Synergy
Allocate
Resources
BRAND PORTFOLIO
OBJECTIVES
Facilitate Change
and Adaptation
Achieve Clarity
of Product
Offerings
Reduce
Brand
Identity
Damage
Strategies for Brand Strength
 Brand-Building Strategies
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– Developing the brand identification strategy
– Coordinate identity across the organization
Brand Revitalization
– Find new uses for mature brands
– Add products related to heritage
Strategic Brand Vulnerabilities
– Brand equity can be negative
– Retailer private brands compete with manufacturer brands
– Major shifts in consumer tastes
– Competitive actions
– Unexpected events
Product Mix Modifications
Motivation for changing the product mix:
• Increase the growth rate of the business
• Offer a more complete range of products to
wholesalers and retailers
• Gain marketing strength and economies in
distribution, advertising, and personal selling
• Leverage an existing brand position
• Avoid dependence on one product line or category
BRAND LEVERAGING STRATEGY
LINE
Minor variants of a single product
are marketed under the same
EXTENSION
brand name
BRAND
EXTENSION
Extensions of the brand
name to other product
categories
--Similar
--Dissimilar
LEVERAGING ALTERNATIVES
LINE EXTENSIONS
Horizontal
Extension
BRAND EXTENSIONS
Vertical
Extension
Up from
Core
Brand
Another
Product
Class
Down from
Core
Brand
Range
Brand
CoBranding
BRAND LEVERAGING IN UPSCALE AND VALUE
MARKETS
Vertical Brand Extensions*
Core Brand
New
Down-Market Brand
* ONE OF THE MOST DIFFICULT
BRAND PORTFOLIO CHALLENGES
New
Up-Market Brand
Core Brand
MOVING DOWN IS EASY BUT RISKY
 Affects perceptions of the brand –perhaps even more
significantly than other brand management options.
We are influenced more by
unfavorable information than by favorable information.
 The brand’s ability to deliver self-expressive benefits may be
reduced.
 Potential cannibalization problem.
 Potential failure risk.
 Problem when the value entry is perceived to be inconsistent
with the quality expected from the brand.
MOVING A BRAND UP
THE DRIVERS
Enhanced Margins at the High End
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•Energy & Vitality
•Enhance Credibility and Prestige of
the Brand
THE RISKS OF DAMAGING THE CORE
BRAND
Lacks Credibility
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•Lacks Self-Expressive Benefits
•Falls Short of Expectations
BRAND EXTENSION DECISIONS
Extending into Different Product Classes
THE PROCESS
Identify product categories for which the product fits and adds value.
Determine existing brand associations and the
brand identity.
◊Identify related product category opportunities
Screening should be limited
◊Evaluate each category
Attractive
Growing
Good margins
Competition
Assets/Capabilities
◊Select the most promising extension concept
◊Develop a viable Brand Strategy
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BRAND LEVERAGING EVALUATION
CRITERIA
Brand Relevance/Differentiation
Capabilities/Perceived Value Match
Market/Segment Opportunity
Cannibalization Risks
Potential for Core Brand Damage
Clarity of Product Offerings
Estimated Financial Performance
Brand Equity Impact
SEVEN DEADLY SINS OF BRAND
MANAGEMENT*
Failure to fully understand the meaning of the brand.
Failure to live up to the brand promise.
Failure to adequately support the brand.
Failure to be patient with the brand.
Failure to adequately control the
brand.
Failure to properly balance
consistency and change
with the
brand.
Failure to understand the complexity of brand equity
measurement and management.
*Kevin Lane Keller, Strategic Brand Management, Prentice Hall, 2003, 736.