BA 324 Brand Strategy in brief
(This presentation only includes the
headlines. For your exam and project you
are responsible for everything that we have
discussed in class, not only these)
Brand Strategy Process
The process of creating a brand strategy begins with a brand audit and ends with a
plan for executing the brand across all touch points.
Brand Audit
Target & Insight
Competitive
Assessment
1
Brand
Inventory
Points of Parity and Difference
Brand Strategy
Equity
Pyramid
Positioning
Personality
2
Objectives & Metrics
Brand Execution
3
Brand
Elements
Communications
Strategy
Brand Experience Map
2
CRM &
Community
Building
1) Brand Audit (Understanding the environment)
Brand Audit
Target & Insight
Competitive
Assessment
Brand
Inventory
Points of Parity and Difference
3
1a) Target Matrix (Segmentation)
The target matrix helps ensure the brand focuses on the customers and prospects that
offer the greatest potential for increased revenue and profitability.
Segment A
Segment B
Size/Profile
Decision Criteria or
Motivators
Usage Behavior
Decision Process
Barriers/Concerns
Key Influences
Brand Importance
Role of price
Satisfaction
4
Segment C
Segment D
Example Target Matrix: Wine Drinkers
Enthusiasts
Variety
Seekers
Infrequent
Regulars
Tourists
One-timers
Size/Profile
12%
20%
16%
14%
23%
Decision
Criteria or
Motivators
Quality,
optimize the
drinking
experience
High price and
sophisticated
image
Well-known
winery label
Sensible choice,
feel comfortable
Personal
attention &
reassurance
Barriers/
Concerns
Avoid mistakes
that can spoil
the experience
Not sure what I
want
Avoid risk
Avoid feeling
foolish
Confused by wine
Wine authorities
Popularity
Brand name
Promotional
offers
Store Personnel
Alternatives
Low
High
High
Medium
High
Target
importance to
Kavaklıdere
High
Medium
Medium
Medium
Low
Key Influences
Targeting
5
1a) Target Insight
• Describes how a meaningful connection can be
established between what the brand offers and
the target’s explicit or implicit needs
• Understanding what the consumer wants in
reality
• And which business you are in
– Revlon: Hope
– Johnny Walker: Fashion Accessories
– Nike: Find your greatness
Target Insights: Where to find
Trends
Ethnographic research & ‘shop alongs’
Motivations/”Sweet spots”
Online communities
Decision-making process/criteria
Social media listening & ‘netnographies’
Higher level benefits
Crowdsourcing and co-creation
Image/Identity gaps
Consumer panels
New Segments
Neuro-marketing
Unmet needs
Customer service
7
Target Insight: Dove
"90% of women are not happy with the way they
look," and they are frustrated with the way beauty is
portrayed in our society.
8
1b) Competitive Assessment:
Points of Parity and Difference
Potential Brand Differences
Wants and Needs
Brand
Strengths
Our
Consumer
PODs
Needs
Vulnerabilities
Their
PODs
POPs
• Points of Parity (Category Benefits)
Competitor Strengths
9
a POD’s analysis is to identify what
ideas from our brand and
competitive brands are most
meaningful and potentially
differentiating.
The purpose of a POP’s analysis is
to identify which category benefits
are critical for establishing
credibility.
Points of Parity and Difference: Coffee
Customer Needs
Coffee House
Potential Points of
Difference
• Knowledgeable assistance
in coffee
• A wide variety of coffees
• Quality coffee
• A variety of products
• Having a good time
Brand
Strengths
Consumer Needs
• Not being disturbed for
prolonged stays
Coffee
Points of Parity
• Good time
• Good taste
Competitor Strengths
Vulnerabilities
• Wide and deep selection
enables choices (i.e.
Chocolate, ice cream)
1c) Brand Inventory: What I already have
 A brand inventory identifies existing or potential assets
that can be leveraged or gaps that need to be addressed
to build or create sustainable points of differentiation.








Heritage/Historical Positionings (existing products)
Brand Identity logos, icons or symbols
Secondary associations
Gaps between identity and image
Organizational strengths
Where to Find
Assets or Gaps
Brand Values/Vision
Product performance claims, proprietary technology/patents
Third-party ratings or endorsements
11
2. Brand Strategy
Brand Strategy
Equity
Pyramid
Positioning
Personality
Objectives & Metrics
12
2a) Brand Equity Pyramid
The brand equity pyramid outlines the basic building blocks of what the brand should
stand for – brand vision, brand positioning, and brand personality and brand
measurement.
Example Brand Pyramid: Kavaklıdere
Egeo
Relationship
Resonance
The wine I’m proud
to share.
Response
Consumer
Judgments
Consumer
Feelings
Quality wine
Authentic, genuine
Confident,
Discerning, savvy
Meaning
Identity
Brand Performance
Brand Imagery
Soul not overridden by process.
Accessible, not snooty wine for
discerning wine lovers.
Salience
Kavaklıdere is a high quality wine everyone can enjoy.
14
1b) Brand Positioning
• According to Trout and Reis, “positioning is not what you do to
a product. Positioning is what you do to the mind of the
prospect. That is, you position (place) the product in the mind
of the potential buyer”.
• Since that time in marketing, positioning is the technique in
which marketers try to create an image or identity for a
product, brand, or company in the perception of the target
market.
• What matters is how potential buyers see the product. It is
expressed relative to the position of competitors.
• Typical positioning tools include graphical perception mapping,
market surveys, and certain statistical techniques.
Brand Positioning
•
•
•
•
•
•
•
•
Identify competing products.
Identify the attributes (also called dimensions) that define the product
'space'.
Collect information from a sample of customers about their
perceptions of each product on the relevant attributes.
Determine the share of mind of each product
Determine the current location of each product in the product space
Determine the target market’s preferred combination of attributes.
These are called: an ideal vector.
Examine the fit between: the positions of competing products, the
position of your product and the position of the ideal vector
Select the optimum position
Perceptual Map of Beer Market
(This slide shows only the products)
•
Old Milwaukee
Budweiser
•
Meister Brau
•
Miller
Beck’s
•
• Heineken
•
•
•
Coors
Stroh’s
• Michelob
•
•
Old
Milwaukee Light
Miller
Lite
•
Coors
Light
Perceptual Map of Beer Market
(This slide includes both products and attributes)
Heavy
Heavy
Full Bodied
Old Milwaukee
•
Budweiser
•
Meister Brau
•
Good Value
Popular
with Men
Miller
•
Beck’s
•
Stroh’s
Budget
• Heineken
Special
Occasions
•
Coors
Blue Collar
•
Dining Out Premium
Premium
• Michelob
•
On a
Budget
•
Pale Color
Old
Milwaukee Light
Interesting web site to visit: www.ratebeer.com
Light
Coors
Light
Miller
Lite
•
Light
Less Filling
Popular
with
Women
Brand Positioning Statement: Formula
A brand positioning statement describes how the brand will communicate with a
specific target group to create a sustainable competitive advantage.
For (Target), (Brand/Company) is the only/best
(consumer frame of reference)
that (statement of key benefit or guiding value),
because/by (reason to believe, key credibility point).
Evaluation Criteria: Brand Fit, Customer Relevance, Uniqueness, Sustainability,
Credibility
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Positioning Example: DeWalt
To the tradesman who uses his power tools to make a living and cannot afford downtime
on the job, DeWalt professional power tools are more dependable than other brands of
professional power tools
because
1)they are engineered to the brand’s historic high-quality standards
2)they are backed by Black & Decker’s extensive service network and guarantee to
repair or replace any tools within 48 hours.
22
Positioning Statements
• Pantene
– For [females 18-49 who possess dry damaged hair and
believe they cannot achieve truly healthy/shiny hair]
Pantene is a [hair care system (shampoo/conditioner/
styling aids)] that offers [“hair so healthy it shines”]
because it [“penetrates from root to tip” through its
patented Pro-Vitamin B5 formula].
2c) Brand Personality
Brand personality describes how a brand behaves --- what it does and how it does it – so
that the brand always acts consistent with its values. Brand personality enhances target
appeal and provide further differentiation.
The FIVE CORE DIMENSIONS OF PERSONALITY
What Brand IS:
What Brand IS NOT:
Sincerity (down to earth, honest, real, wholesome,
cheerful)
Excitement (daring, trendy, spirited, cool, imaginative,
up-to-date)
Competence (reliable, intelligent, successful, leader,
confident)
Sophistication (upper class, charming, glamourous, good
looking)
Ruggedness (outdoorsy, tough, masculine)
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Brand Personality: Tex Mex
What Tex Mex is:
Friendly
Fun
Sophisticated & Contemporary
Spirited
Authentic
What Tex Mex is NOT:
Fancy
Traditional
Pretentious or stuffy
Take itself too seriously
Brand Archetypes
3) Brand Execution
Brand Execution
Brand
Elements
Communications
Strategy
CRM &
Community
Building
Brand Experience Map
27
3a) Brand Elements
•
•
•
•
•
•
Brand Name
Logo & Symbol
Characters
Jingles
Slogans
Packaging & Product Design
Brand Building Criteria
•
•
•
1. Memorable
– Easily recognized
– Easily recalled
2. Meaningful / Understandable
– Descriptive
– Persuasive
3. Likable
– Fun and interesting
– Rich visual and verbal
imagery
– Aesthetically pleasing
•
•
•
4. Transferable
– Within and across product
categories
– Across geographic boundaries
and cultures
5. Adaptable
– Flexible
– Updatable
6. Protectable
– Legally
– Competitively