MM6016
BRANDING AND MARKETING
COMMUNICATION
Master of Business Administration
School of Business and Management
Institut Teknologi Bandung
BACKGROUND
• Brand is a strategic asset for companies
• Brand management incosistency will generally
lead to failure and success will bring
significant advantages for companies
• Few know how to manage brand properly
• This course is designed to help students
learning about how to be a good assistant
brand manager (as your first appointment in
brand management)
LEARNING GOALS
1. To build students’ skills in analysis of branding
situation using the concept they have learned
2. To develop decision making skill that enable
students to identify alternative solutions and
choose the one which can strengthen brand
position in the market
3. To develop team work and communication skills
and leadership which is required to run brand
management activities
LEARNING OUTCOMES
After completing this course, students will
have required competencies as an assistant
brand manager and demonstrate leadership,
teamwork, and communication skill required
to perform their role as assistant brand
manager effectively.
COURSE STRUCTURE
Ability to Develop Plan
for Branding Decision
and Create Mock Ups
(brand elements,
product, ads and
touchpoints)
Ready as Assistant
Brand Manager
Understanding of Integrated
Marketing Communication
for branding
3
Ability to Develop
Branding Decision and
Strategy
Ability to Identify
Brand Problems
Understanding of brand
strategy
2
Ability to conduct Brand
Performance Analysis
1
Understanding of Brand,
Brand Role, Brand
Objectives, Brand Equity, and
Brand Management
Understanding of
Brand Measures
Understanding of Brand
Analysis Steps and Tools
MY SHORT PROFILE:
Dr. Reza Ashari Nasution
EDUCATION
1994 - 1998
2001 - 2005
WORK EXPERIENCE
2001 – 2005
1998 - 1999
2005 - NOW
Sultan Qaboos
University, Oman
2000
2008
RESEARCH INTERESTS
Brand Preference
Brand Community
Brand Partnership
Brand Ecosystem
LEARNING METHODS
EVALUATION
Item
Weight
Blog
Individual class participation
Mid Test
Group Final Project
TOTAL
BC
10%
20%
30%
40%
100%
B
AB
A
STUDENT GUIDANCE
In order to succeed, students are advised to do the
followings:
• Allocate sufficient time for self preparation
• Discuss concepts and cases with their syndicate
• Elaborate practical cases apart from cases given
• Have a proper notes of all lecture
• Contribute actively in the class
REFERENCES
Main text book:
• Kevin L. Keller, 2008, Strategic Brand
Management, 3rd Edition, Prentice Hall.
Supporting text:
• John A. Davis, 2010, Competitive Success: how
branding adds value, John Wiley & Sons, Ltd.
• J.N. Kapferer, 2008, The New Strategic Brand
Management, 4th Edition, Kogan Page
NEED TO DISCUSS?
•
•
•
•
•
Director Room, MBA ITB Building
Call 022-2504308 ext 126
E-mail reza@sbm-itb.ac.id
BB Pin 21759DAC (no broadcast please)
From Monday to Friday, 8am – 5pm
MM6016 Branding and Marketing Communication
Introduction to
Brand
HISTORY OF BRAND
• Old Norse word: “Brandr” = “To Burn”
• Greeks and Romans puts their
signatures/symbols on wet claypots
• Pottery communities
TRADITIONAL BRAND DEFINITION
• It’s a mark
• Different forms: name, logo, symbol, design,
or combination of those
• Purpose: to differentiate
• Focus: tangible
TODAY’S PRACTICAL BRAND
DEFINITION
• Set of associations or known descriptions
• Stored in people’s mind
• Which is represented, at least, by name (this is
the most remembered element of a brand)
• Focus: intangible
• Holt (2003): “Brand is perceptual entity,
rooted in reality”
WHAT IS YOUR PERCEPTION ABOUT...
BANK MANDIRI
BANK CENTURY
GARUDA INDONESIA
MERPATI AIRLINES
APPLE IPAD
SAMSUNG GALAXY TAB
WHICH ONE IS THE CORRECT LOGO
MANIFOLDS OF BRAND DEFINITION
Source: Berthon et al. (2007)
HOLISTIC DEFINITION OF BRAND
(De Chernatony, 2006)
• Input perspective
–
–
–
–
–
Brand as logo
Brand as identity
Brand as quality indicator
Brand as values
Brand as vision
• Output perspective
– Brand as image
– Brand as relationship
• Time perspective
– Brand is a dynamic entity
BRAND DEFINITION (UU 15/2001)
1. Merek adalah tanda yang berupa gambar, nama, kata,
huruf-huruf, angka-angka, susunan warna, atau kombinasi
dari unsur-unsur tersebut yang memiliki daya pembeda
dan digunakan dalam kegiatan perdagangan barang atau
jasa.
2. Merek Dagang adalah Merek yang digunakan pada barang
yang diperdagangkan oleh seseorang atau beberapa orang
secara bersama-sama atau badan hukum untuk
membedakan dengan barang-barang sejenis lainnya.
3. Merek Jasa adalah Merek yang digunakan pada jasa yang
diperdagangkan oleh seseorang atau beberapa orang
secara bersama-sama atau badan hukum untuk
membedakan dengan jasa-jasa sejenis lainnya.
MM6016 Branding and Marketing Communication
Brand Roles &
Objectives
Quality
Signal
Quick
Reference
Bring
more
revenue
To
Identify
Brand
To
leverage
As
guarantee
Offsetting
performance
failure
To reflect
personality
BRANDING OBJECTIVES
Brand Value Chain
Activity & Program
Metrics
Customer Perceptions &
Behavior
Market
Performance
•Marketing Investment
•Program Quality
•Clarity
•Relevance
•Distinctiveness
•Consistency
•Channel expansion
•Brand awareness
•Brand associations
• Perceived quality
•Brand Loyalty
•Sales
•Market share
•Price premium
•Profitability
•Price elasticity
•Expansion success
BRANDING OBJECTIVES
26
MM6016 Branding and Marketing Communication
BRAND CLASSIFICATION
27
CRITERIA FOR CLASSIFYING
•
•
•
•
•
Based on brand architecture
Based on supply chain entity
Based on product types
Based on customer types
Based on geographic scope
28
BASED ON BRAND ARCHITECTURE
Corporate Brand
Family Brand
Individual Brand
Modifier (designating item or model
29
AN EXAMPLE
Procter & Gamble
Olay
Olay Total Effects – Olay Natural White – Olay
White Radiance
Olay Total Effects cream – cleanser – eye cream
30
BASED ON SUPPLY CHAIN ENTITY
• Manufacturer brand
• Distributor/retailer brand
31
BASED ON PRODUCT TYPES
• Product/Physical goods brand
• Service brand
32
BASED ON CUSTOMER TYPE
• B2B brand
• B2C brand
33
BASED ON GEOGRAPHIC SCOPE
• Global brand
• Local brand
CORA MEDIA INTERAKTIVE
34
MM6016 Branding and Marketing Communication
BRAND ARCHITECTURE
35
Brand architecture is a structure
of all brands that a company has.
The structure shows relationship
between brands and reflects the
brand strategy of the company.
EXAMPLE
• GILETTE
• OLAY
• PAMPERS
MM6016 Branding and Marketing Communication
BRAND RELATIONSHIP SPECTRUM
38
TYPES OF BRAND RELATIONSHIPS
•
•
•
•
BRANDED HOUSE
SUB BRANDS
ENDORSED BRANDS
HOUSE OF BRANDS
BRANDED HOUSE
• A single identity that encompasses all
products (example: BMW, Microsoft, CNN)
• Brand strategy implications:
– Advantages: requires fewer resources, minimize
misunderstanding, easier alignment
– Disadvantages: inability to appeal diverse
consumer segments, generic brand campaign
which might not be memorable, creativity is
hindered, consequence of failure is larger
SUB BRANDS
• A strong brand at a level under the master brand (i.e. a
sub brand). Example: Nike Air Jordan, Lenovo Thinkpad
• Brand strategy implications:
– Advantages: both brands (master and sub brands) give
each other recognition and create new associations that
can help the market’s understanding of both brands, helps
growing market share and shareholder benefits, greater
loyalty from distribution partners
– Disadvantages: complexity and expenses are added to
marketing communication, may dilute or confuse master
brand, complex distribution strategy, create a single point
of attack for competitors.
ENDORSED BRANDS
• Independent brand, which is overtly endorsed by
a master brand (example: Polo by Ralph Lauren,
Ibis by Accor Group etc)
• Brand strategy implications:
– Advantages: provide credibility for the endorsed
brands, endorsed brand benefits from the master
brand’s reputation, can break into competitor’s
territory
– Disadvantages: can be expensive, too many
endorsement may signal weak sub-brands, greater
consequences of failure
HOUSE OF BRANDS
• Multiple strong brands housed in a de-emphasized,
weak or unknown corporate entity (example: Procter &
Gamble, Kao etc)
• Brand strategy implications:
– Advantages: each brand can maximize impact on market
or niches, individual brand can be specified to fit a target
market, increase variations of new revenue streams, more
creativity and talents
– Disadvantages: little or no leverage can be used with the
parent association (remember the Indonesat tagline:
“Punya Indosat”), more expensive, creating internal
rivalries, hard to unify customer loyalty, confusing image
(may not be aligned perfectly)
MM6016 Branding and Marketing Communication
BRAND PORTFOLIO
44
LITERAL DEFINITION
• Keller (2008, p. 434)
“the set of all brands and brand lines that a
particular firm offers for sale to buyers in a
particular category”
• Aaker (2004, p. 14)
“Brand portfolio is both owned brands and brands
linked through alliances, which are considered as a
team of brands working together, each with
assigned roles to enable and support business
strategies”
PRACTICAL DEFINITION
Brand portfolio is the collection of
all brands owned by a particular
company, which ranges across
categories and products.
Accor Group
Coca Cola Company
(http://home.hospemag.com/co/accor)
http://foodanddrinkbusiness.com/?p=4403
BRAND PORTFOLIO CONCEPT (1)
P1
P2
B1
B2
Brands
B3
...
BN
Brand
Portfolio A
Brand
Portfolio B
Products
P3
...
PN
BRAND PORTFOLIO CONCEPTS (2)
(KELLER, 2008 P. 434)
• Brand line: all products sold under a particular brand
• Product line: a group of products within a product
category which are closely related, sold to the same
customer group, same outlets, or fall within given price
ranges
• Product mix: all product lines made available to buyers
• Brand mix: all brand lines available to buyers
• Depth of branding strategy: how deep is the brand
portfolio
• Breadth of branding strategy: how far is a brand
stretched to include other product categories
MM6016 Branding and Marketing Communication
BRAND POSITIONING
50
DEFINITION
• Brand Positioning is “the act of designing the
company’s offer and image so that it occupies a
distinct and valued place in the target customer’s
mind”(Keller, 2008)
• The distinctiveness is the product of benchmark
againts competitors or customers’ point of
reference
• According to Kotler and Keller (2006), positioning
does not necessarily create distinct
characteristics, because of different competitive
strategies applied by companies.
CREATING POSITIONING (1)
CREATING POSITIONING (2)
Keller (2008):
1. Determining the frame of reference:
– Target consumers
– Competitors
2. Determining the ideal POP and POD of brand
associations
– How the brand is similar to those competitors
– How the brand is different from them
SEGMENTING
• Segmentation is the process of dividing a whole
market into group of buyers
• Bases for segmentation:
– Product-based: category, function, size, etc.
– Consumer-based: demography, geography,
psycography and behavior
• Good segment criteria:
–
–
–
–
Identifiable
Considerable size
Accessible
Responsive
TARGETING
• Targeting is an act of choosing one or more of the identified
segments
• The selection is based on:
– Market attractiveness
– Competitive positioning
• An innovative company digs down each market segment to find
new needs
• The newly identified needs is scrutinized to measure potential
growth in the future
• Different types of targeting:
–
–
–
–
One segment targeting
Multiple segment targeting
Combined segment targeting
Mass market targeting
IDENTIFYING NEEDS
• Market research
• Market insight
• Market testing
COMPETITIVE ANALYSIS
•
•
•
•
•
Competitive mapping
Benchmark
Strategic actions
Changes in PEST factors
SWOT
POP & POD
• Point of Parity (POP)
– Category POP
– Competitive POP
• Point of Difference (POD)
– Category POD
– Competitive POD
POSITIONING STATEMENT
EXAMPLE: PRENAGEN ESENSIS
MM6016 Branding and Marketing Communication
BRAND AND PRODUCT
61
BRANDS VS PRODUCTS
Product
Anything we can offer to a
market for attention,
acquisition, use, or
consumption that might
satisfy a need or want.
Brand
Sum total of consumer
perceptions and feelings about
the product’s attributes and
how they perform, about the
brand name and what it stands
for, and about the company
associated with the brand.
62
PRODUCTS VS
BRANDS
Computer
Car
Beverage
Electronic
Appliance
63
RELATIONSHIP BETWEEN PRODUCT &
BRAND (1)
Potential
Product
Augmented
Product
Expected
Product
Generic
Product
Core
benefit
64
RELATIONSHIP BETWEEN PRODUCT &
BRAND (2)
Branded product
Brand’s intangible
values & imagery
Halo effect
Brand aspiration
Product’s
$$ visible and
differentiating characteristics
Product satisfaction
Expectations
65
RELATIONSHIP BETWEEN PRODUCT &
BRAND (3)
Resonance
Core product benefit
Judgments
Feelings
Performance
Imagery
Salience
Brand building equity pyramid
66
PRODUCT, BRAND AND CONSUMERS
•
•
•
•
Product used to dictates brand. The situation changed now
Brand influences purchase
Brand is perceived and experienced by consumers
Brand used to be company’s belonging, but now it is shared with
consumers
Konsumen
Perusahaan
Produk
Brand
(a)
Konsumen
Perusahaan
Brand
Produk
(b)
Perusahaan
Brand
(c)
Konsumen
BRAND IDENTITY AND IMAGE
68
Brand management process:
top-down
Brand vision
and purpose
Core brand
values
Brand perception process:
Bottom-up
Brand personality codes
Semiotic invariants
Strategic benefits and attributes
Physical signature, family resemblance
Product A.. Product B .. Product N .. Typical brand
actions
Permanent fluctuations of the market
Evolution of competition, life stles, technology
MM6016 Branding and Marketing Communication
STRATEGIC BRAND MANAGEMENT
69
CONSIDERATIONS AND STEPS
• Brand Life Cycle
• Davis (2010): brand has to maintain its
relevance
• Kapferer (2008):
STEP 1
• Mental Maps
• Competitive frame of reference
• Points of parity and points of
difference
Identify and Establish
Brand Positioning • Core brand associations
• Brand manatra
and Values
71
BRAND ELEMENTS
• Kapferer (2008)
Brand concept (value proposition)
Tangible and intangible
Brand name and symbols
Semiotic invariants
Product or service
Experience
STEP 2
• Mixing and matching of brand
elements
• Integrating brand marketing
activities
Plan and implement • Leveraging secondary associations
Brand marketing
programs
73
BRAND MARKETING PROGRAMS
• Davis (2010)
– Communication objectives
– Messages
– Mode (touchpoints)
– Evaluation
– Adjustment
STEP 3
Measure and
interpret brand
performance
• Brand value chain
• Brand audits
• Brand tracking
• Brand equity
management system
75
Brand Tracking accross
the brand value chain
Brand Value Chain
Activity & Program
Metrics
Customer Perceptions &
Behavior
Market
Performance
•Marketing Investment
•Program Quality
•Clarity
•Relevance
•Distinctiveness
•Consistency
•Channel expansion
•Brand awareness
•Brand associations
• Perceived quality
•Brand Loyalty
•Sales
•Market share
•Price premium
•Profitability
•Price elasticity
•Expansion success
76
STEP 4
Grow and sustain
brand equity
• Brand-product matrix
• Brand portfoilio and
hierarchies
• Brand expansion strategies
• Brand reinforcement and
revitalization
77
INTEGRATED BRANDING
CONSISTENT BRANDING
BRAND EVOLVES
Source: McEnaly and de Chernatony, 1999
MM6016 Branding and Marketing Communication
CASE 1: SAMSUNG
WRITTEN BY FAN YE AND CHRISTIAN KIM UNDER SUPERVISION OF PROF. ROBIN
RITCHIE OF RICHARD IVEY SCHOOL OF BUSINESS IN 2004
81
SAMSUNG HISTORY
• From small trading company to an economy
powerhouse
• Operated in 67 countries with more than
175000 employees worldwide
• Surpassed Hyundai to become the leading
business group in South Korea
“Behind this impressive growth is
Samsung’s effort to redefine itself
as a vendor of cutting edge
consumer technology” (P. 1)
“By 2000, the company’s successful
launching of innovative product such
as mobile phone, PDA, MP3 player,
and digital TV had established
Samsung as a credible player” (p. 4)
SAMSUNG’S BRANDING EFFORT
• Samsung saw digital product as a major trend in consumer
electronics
• The company put a lot of investment in R&D and marketing of
digital products since then
• In 1999, Samsung ran a global campaign of “SAMSUNG DigitAll –
everyone’s invited” to position the company as a producer of
innovative and easy to use consumer electronic products
• Samsung moved into high profile marketing campaign by
sponsoring the 2000 olympic in Sydney
• Increasing marketing communication budget by 35%
• Featured some mobile phones in two box office movies: The
Matrix: Reloaded and The Matrix: Revolution
• Samsung Electronic had redirected its focus away from mass
merchants to specialty retailers like Best Buy, Circuit City and
CompUSA
MM6016 Branding and Marketing Communication
CASE 2: FRANZ COLLECTION
WRITTEN BY PROF. LIEN TI BEI (NATIONAL CHENGCHI UNIVERSITY) AND PROF.
SHIH-FEN CHEN (RICHARD IVEY SCHOOL OF BUSINESS) IN 2010
86
FRANZ COLLECTION HISTORY
• Franz Collection Inc. (Franz) is a Taiwan based
manufacturer which specialized in functional and
home décor accessories.
• The company was originated from Seagull Décor
Co. Ltd which sold crafts, gifts, ornaments, and
home décor items.
• Seagull was a pure original equipment
manufacturing (OEM) company, flourished by
capitalizing on the country’s skills in low-cost
manufacturing and assembly.
• Seagull moved to trading business and
became an ODM company (Original Design
Manufacturing)
• As an ODM, Seagull was known by its design,
creativity, cost effective, and efficient
designers.
• The design skill elevated and Francis Chen, the
owner, decided to launch their own brand:
FRANZ
“Chen was aware that owning a
brand was not as simple as
putting a logo on the
product...Chen also had to
consider the resistance from
Seagull’s current customers.” (p.
5)
“To prevent potential conflict with
current clients, Chen set up a separate
company, Franz Collection Inc. in both
Taiwan and the United States in 2001.
The separation helped position Franz as a
premium brand in its own right,
independent of what Seagull stood for”
(p. 6)
FRANZ BRANDING EFFORTS
•
•
•
•
Focus on porcelain (p. 6)
Described the brand essence and spirit (p. 9)
Set up a logo (p. 10)
Set up the principle of design and develop
required skills (p. 10)
• Set up pricing (p. 5)
• Set up marketing channel (p. 8)
• Run marketing campaign (p. 9)
“OEM or ODM is the kind of business on
order-to-build. You make nothing if there
is no order. A branded product means
that you control your own direction. OBM
was not an easy choice. It was an
unknown terrain and there were risks.
But we went ahead, taking one step at a
time.” (p. 13)