BRAND STRATEGY PART II Elliot Jones IMC Brand Development IMC 602 Dr. Russ Mertz Brand Strategy Statement The challenge facing the Bose Corporation is not a lack of innovation but rather of one of saturation. The recent surge in consumer electronics particularly in the home theater market has had a significant impact on sales for Bose products. Brand equity for Bose is quickly eroding due to this market saturation. This Part II of the Bose’s Brand Strategy will layout brand development objectives and brand tactics that Bose needs enact in order revitalize the brand. PART 1: Determine Customer Based-Brand Equity (CBBE) Development Objectives The best way to determine these objectives is to use the CBBE model. The CBBE model is a four step sequential approach, which will aid in building, measuring, and managing brand equity. The premise of the model is that the power of the brand lies in what customers have learned, felt, see, and heard about he brand as a result of their experience over time. I. Establish Brand Identity of Bose Establishing the identity of the Bose brand is the foundational building block of the CBBE model. At this level the first objective is to establish a connection with the needs of the consumer. The reason for purchasing a Bose product is to fulfill an audio solution need. The consumer is looking for superior quality, functionality and performance, which is the connection to the consumer for Bose. The second object at this foundation level is to position the Bose brand in away that it is top-ofmind for the consumer. Building this brand salience is done through memory association of the brand elements as well as their overall prior experience of the brand. When a consumer is looking for an audio solution the Bose brand needs to come to mind. II. Establish Brand Meaning of Bose Establishing brand meaning is the second essential step in realizing the Bose brand. Brand meaning is made up of two main components- brand performance and brand imagery. Brand performance is broken into five tangible attributes: 1. Ingredients and Features 2. Reliabilty, durability, and serviceability 3. Service effectiveness, efficiency, and empathy 4. Style and design 5. Price Bose has excelled at the majority of these, which is why this small company is currently positioned as one of the leaders in the consumer electronic markets. The price point for Bose products places these products out of reach for the average consumer. Bose should explore expanding products categories to include a product in each line aimed at the average consumer. Bose will be able to increase the performance of the brand by adding a lower price point to the major product categories. Brand imagery is broken into four intangible attributes: 1. User profiles – Bose should move to position themselves for a younger audience. Specifically college students or recent college graduates. 2. Purchase and usage situations – Making Bose products more available not just limiting the majority of sales through direct purchase but creating mall kiosks, stores-within-stores and even Cineplex setups. 3. Personality and values – Bose currently comes across very modern and sincere. Bose should explore adding excitement to the personality of the brand. This could be accomplished through print, TV, and Internet advertising. 4. History, heritage and experiences – Bose has a very strong heritage of innovation through research. Bose should continue to leverage their strong heritage and history to show how far they have come through research as well as where the research is taking the company in the future. III. Create Responses to Bose Creating brand responses is the third essential step in revitalizing the Bose brand. Brand responses are what customers think or feel about the brand. Brand responses are derived from either the “head” or the “heart”. Are the responses a brand judgment or a brand feeling? Brand judgments are the opinions and evaluations the consumer has about the brand. There are four major areas of brand judgment: 1. Quality – Does the Bose offer superior quality, functionality, style and design for the price? 2. Credibility – The relationships Bose has established through providing audio solutions for NASA, automobile makers, and the U.S. Military aid in credibility. Bose must continue pursue these types of relationships. 3. Consideration – Brand associations early on need to be established with consumers so that down the road Bose is a considered brand for them when they need an audio solution. Many competitive brands have already made strong associations with consumers by the time they are able to afford a Bose product. Brand such as Sony, Samsung, and Phillips. 4. Superiority – The goal is for the consumer to view Bose as the best solution for their audio needs. Why should I choose Bose? This should not even be a question that comes to the mind of the consumer through an established relationship with the consumer they will know they are choosing the best product for them. Brand feelings are the emotional responses the consumer has to the brand. There six types of brand-building feelings – warmth, fun, excitement, security, social approval, and self-respect. Over the last forty-five years Bose has successful been able to evoke the latter three emotions from their core consumers – security, social approval, and self-respect. What's lacking is the first three emotional responses – warmth, fun, and excitement. The focus for Bose in this revitalization process needs to be on how they create opportunities for these emotional responses from the consumer. IV. Solidify the Brand Relationship The final step is to create a brand resonance with the consumer; this is the ultimate goal of the CBBE model as well as the revitalization of the Bose brand. Brand resonance is made up of two components the first is the level of intensity or bond the consumer feels toward the brand. The second is the level of activity the consumer has with the brand such as repeat purchases. These two components can be broken down into four categories – loyalty, attachment, community, and engagement. Intensity Loyalty – Bose loyalist would be repeat purchases. They also would purchase from different product lines. Perhaps they have a set of Bose in-ear buds and are now looking to purchase a Bose Acoustimass Home Theater system. Attachment – An example of this for Bose would be a consumer who “loves” how a particular movies sound is reproduced through his Bose speakers. “I have never heard anything like it”. Activity Community and Engagement – Bose could explore ways to engage their consumers such as a “welcome to the Bose family” insert in each product box. This could connect them via the Internet to Bose owner communities as well as exclusive online resources. V. Associations –Points of Difference (POD) and Points of Parity (POP) for Bose Part of the Bose brand revitalization process is a need to assess the different levels of competition and the implications this has on the brand associations for Bose. This can be done through assessing the points of difference and point of parity for Bose. Points of Difference for Bose Performance Bose has a unique sound quality through patented innovations such as the Acoustic Wave guide technology, Direct/Reflecting technology and Noise Canceling technology The style and design of Bose home theater products offers consumers large speaker sound packaged in unique compact solutions. Points of Parity for Bose Functionality: Bose audio solutions are very easy to set-up and navigate. Reliability: Bose audio solutions have been around for forty-five years many consumers still use Bose speakers they bought years ago as part of their home audio. VI. Positioning of Bose Another important step for Bose in the revitalization process is to capture the important dimensions of the brand meaning what the brand represents. This can be accomplished through sketching out a tentative set of core brand associations and a brand mantra. Core brand associations are attributes and benefits that characterize the most important aspects or dimension of a brand. Identifying these brand associations will aid in the positioning of the brand. [See Figure 1} FIGURE 1 The brand mantra is the articulation of the “heart and soul” of the brand. It is a short phrase that should capture the spirit of the brand positioning. Bose brand mantra: Genuine Superior Sound PART 2: Brand Elements and Marketing Strategy The objective for this section is to select and link the appropriate brand elements and marketing strategy to the CBBE model objectives. I. Establish Brand Elements Criteria for Selecting Appropriate Brand Elements [Figure 3] 1. 2. 3. 4. 5. Memorability Meaningfulness Likability Transferability Adaptability 6. Protectabilty Further these six criteria can be divided into two categories. The first three – memorability, meanfulfness, and likeability are the offensive strategy used in the building of brand equity. The last three – transferability, adaptability, and protectablity are the defensive strategy. These three aid in maintaining the brand equity. The primary focus for the Bose offensive strategy during the revitalization of the brand will be to develop memorable, meaningful and likable brand elements. The primary focus for the defensive strategy is the transferability of the brand across new product lines and brand extensions. Bose Logo and Symbol The logo is the central brand element that plays a key role in building brand equity and brand awareness. The Bose name is the logo. The italicized typeface with a line coming in from the bottom left “B” and exiting the top right “E” is all there is to this logo. Currently Bose uses no imagery or symbols throughout their entire product line. A symbol either of a speaker [Figure 2], an audio waveform, or other sound related element should be incorporated with the Bose typeface. This will help the consumer, especially the younger consumer not really exposed to the brand begin to make the connection between the products Bose sells and the brand name. FIGURE 2 Criteria for selection of the symbol element 1. Memorable – the Bose typeface coupled with the symbol will aid in quicker brand recognition 2. Meaningful – addition of the symbol will create an association with the products Bose sells 3. Likeable – the logo is aesthetically pleasing Bose Slogan Slogans communicate descriptive or persuasive information about the brand. The current Bose slogan is directly tied to the Bose logo. The slogan is “Better sound through research”. Slogans are one of the easiest brand elements to change over time. The Bose brand needs an updated slogan. These are just a few examples of how slogans can help add meaning to the Bose brand. Example Slogans: Listen To Your Ears! Audio of Tomorrow, Today Even Mom Says “Turn It UP” You only watch half a movie if you don’t have Bose You only watch half a game if you don’t have Bose Packaging and Signage Packaging updates or changes can have an immediate impact on sales. To successfully create a link between the CBBE model objectives the flowing strategies pertaining to packaging and signage must be incorporated. All Bose products will be placed in all white packaging with black lettering. Idea behind this is to create brand recognition as consumer enters a store. They will notice the all white cardboard boxes lined against a wall or near a display and began to associate the area within the store with the Bose brand. Stores-within-store will have the Bose brand logo suspended overhead. The main sign will be no less than 3’ x 2’. Every retail store will be given a 1’ x 1’ static cling to be hung on their main entrance which will read – “Bose Authorized Retailer” FIGURE 3 Bose Brand Element Criterion Memorability Meaningfulness Likability Transferability Adaptability Protectability Logos and Symbols Slogans and Jingles Packaging and Signage Adding symbol as element to logo create better brand recognition Listen To Your Ears! Will aid in consumer recalling brand White packaging with black text aid in brand recognition Reinforce brand category with imagery Aids consumer in associating brand with product Consumer will be able to quickly associate packaging with brand Visually aesthetic Slogan paints verbal picture Visually aesthetic Easily Transferable Limited - Slogan may need to be adapted to certain groups or geographic locations Easily Transferrable Redesigned if needed Slogan can be easily changed as needed Redesign of packaging can happen pretty easily High Protectability High Protectability Easily Copied II. Establish Marketing Strategy Elements There three major marketing strategy elements that Bose will need to put in place to build-brand equity. These are product, pricing and channel strategies. Product Strategy Bose should explore the expansion of several categories under the audio solutions umbrella. Bose could produce and sell specific audio components from DVD/Blu-ray players, audio receivers, home media storage solutions, and accessories such as iPod solutions for in-home and vehicle connectivity. Bose should also explore partnerships with movie theaters. Bose could outfit movie theatres or concert halls. The partnership would allow Bose to connect their brand to larger and even younger audiences that perhaps have not yet been exposed to it. Likewise the Bose automobile division should explore putting car audio or car media solutions into the average car (vehicle priced between $20,000 - $30,000). Car audio solutions hold great potential. A driver is in his/her vehicle, nearly every day, exposed to the Bose brand. The goal for offering a wider range of audio solutions, partnership between Bose and larger venues, and well as automobile companies is to not only allow the consumer to make brand associations but add value to the Bose brand. Pricing Bose should explore the adding of products to each audio solution category that fit within an average consumers budget. The new pricing could be launched with a new line of component products such as the DVD/Blu-ray player. Bose could emerge as a well established, competitively priced player in this and other component categories. Example: The average price for a complete home theater speaker system package from Bose currently is about $1000. The base model – Bose Acoustimass 6 system is priced at $700. Bose should enter a base model into the Acoustimass line for $300. Example: The Bose Wave Music system, which is a compact radio for your home or office, has a significant range of price. The base model starts at $350 and goes up to $1080. Bose should enter a base model of the Wave Music system, which will include an iPod dock, at $150. Distribution Channel Bose has does little in the way of mass distribution. It has primarily relied on direct market though its own stores. Bose should make a shift to mass distribution. To start they should begin by setting up stores-within-stores. Currently a limited number of Bose products are offered at Best Buy. This should be expanded to include almost all Bose audio solution products. Bose will need to begin working with Best Buy on how effectively to setup a store-within-a-store. Apple has successfully done this at several Best Buys in the Metro-Detroit area. Bose should keep the higher end products in the Bose branded stores only. Perhaps even developing an exclusive Bose brand that is sold only in the Bose branded stores. Bose should partner with online consumer electronic distributors such as J&R Music, Crutchfield, One Call, and Tiger Direct. Offering incentives to these distributors to move the Bose products. PART 3: Integrated Marketing Communication (IMC) Elements Marketing Communications Marketing communications come in all types of brand-building forms such as online, print advertising, and television. The marketing communication program needs to be carefully designed so it has the desired effect on the consumer. The current perception is Bose is a high-end speaker manufacturer and many audiophiles believe the price does not match the quality. Communications will attempt to build brand awareness by connecting the Bose products to the everyday lifestyle of the consumer. Bose does some advertising currently and as the only major high-end speaker manufacturer to run television ads they have already have quite an advantage. The goal of the IMC program is to 1. Educate consumer sound design and technology and how Bose has genuinely incorporated these aspects into the design of their audio solutions 2. Elicit brand response through excitement and likability. 3. Change the perception of the true audiophile, which is Bose quality is not worth the price. Bose advertising campaign Television – Bose has used TV advertising in the past but these spots were used primarily for short infomercials, which last about 6 minutes. Bose should explore advertising spots on the movie channels such as CineMax, Starz, and HBO. Advertising during major sporting events as well. “You are only watching half the game/movie if you don’t have Bose” – This slogan could be incorporated with the television ad spots. Magazine – Print campaign will reach a specific target group as well as attempt to regain equity with true audiophiles. Magazines such as Home Theater Magazine, Sound & Vision, Enjoy the Music. Also car magazines such as Motor Trend and Car & Driver. To promote the specific accessories for the iPod ads should be placed in MacWorld, Seventeen, and People. Movie Theatre – Ads that run before a movie promoting movie quality sound in you living room. This will be an attempt to build brand awareness as well as brand associations with a younger audience. Radio – Ads placed on the radio that will ask the consumer if they know what they are listening to. This will help build an association with the Bose car audio products. Bose Event Marketing Bose should look at partnering with local outdoor concert venues. Bose could explore a branded music festival. “Bose Music Festival” – Bose would be the headlining sponsors supplying all the pro audio solutions from their professional audio division. The goal of this would be to build brand creditability as well as help establish the identity of the professional division. Bose Personal Selling Personal selling will be key to finding out the needs of the consumer. This will allow face-to-face interaction with the consumer, which will be key to the store-within-a-store channel distribution channel. Personal selling will also aid in engaging the true audiophile to better understand why their impression of the Bose brand is a negative one. Marketing Communication Mix The goal of an Integrated Marketing Communication (IMC) program is to choose the best options of the communication that will be the most effective and efficient. There are six criteria for choosing the best options of communications: 1. 2. 3. 4. 5. 6. Coverage Contribution Commonality Complementarity Versatility Cost The emphasis for the Bose IMC program will be coverage, complementarity, and versatility. Coverage – The goal of the Bose campaign is to reach as many as possible. Some overlap of messages is expected due to the markets we are attempting to reach. This overlap allows for the reinforcement of brand associations or strengthening of linkages. Complementrity – This allows associations to be made across different communications. The television ads for example could be a stepping that drives the consumer to a web URL. This mix will be important to the campaign allowing the print ads in the magazines to work in tandem with the television advertisements Versatitly – This will also very important part of the IMC mix because of the markets Bose will need to target – from the true audiophile to the young teen who has little exposure to the Bose brand. Marketing Budget Recommendation The budget recommendation is focused heavily on advertising. Through advertising the IMC program will build brand awareness moving the consumer to a brand response. The event marketing and personal selling will add brand value through the engagement of the consumer. Secondary Brand Associations Secondary brand associations “borrow” the brand knowledge and associations consumers as on a brand and projects this on the Bose brand. Bose should explore secondary brand associations. Bose needs to leverage this type of association by co-branding movie theaters or concert halls. Another option of co-branding is the utilization of Bose component products in other brands. Bose could be one of the first to develop an internal Blu-Ray player/burner that could be picked up by a major computer manufacturer. While every machine has a disk tray and some with a burner there could be a line of Apple Computer with a Bose Blu-Ray player/burner built in. The same could be done with computer manufacturers. Bose could design home media storage solutions through Pulte homes. “The New Pulte Home by Bose”.