2/18/2012
Brand Management
as a STRATMAN
element
Remember what Brand is?
Dr Vesselin Blagoev
Citroen C1
Brand Strength
Citroen C1
~9,700 Euro
Peugeot 107
~11,500 Euro
Toyota Aygo
~12,500 Euro
Peugeot 107
Toyota Aygo
Brand Strength
Citroen C1
~9,700 Euro
Peugeot 107
~11,500 Euro
Toyota Aygo
~12,500 Euro
Same design – all designed by Toyota
Same engine – All provided by Peugeot
Same supply chain – components supplied through
Peugeot
Same manufacturing – All built in Czech Republic
Same price ? … absolutely not – strong position leads
to higher price
Brand & Branding
• The little “b”
– brand is “ name, term, sign, symbol, or
design, or a combination of them, intended
to identify the goods and ser-vices of one
seller or group of sellers and to
differentiate them from those of
competition.” (AMA)
• The big “B”
Branding and
Brand equity
is about the
“Big B”
– Brand is something that has created a
certain amount of awareness, reputation,
prominence, and so on in the marketplace.
(Keller, 2008)
1
2/18/2012
Multipliers
• Program quality multiplier
– The ability of the marketing program to affect customer mindset
– Must be clear, relevant, distinct, and consistent
• Customer multiplier
– The extent to which value created in the minds of
customers affects market performance
– It depends on factors such as competitive superiority, channel support, and customer size and profile
• Market multiplier
– The extent to which the value generated through brand market performance is manifested in shareholder value
– It depends on factors such as market dynamics, growth potential, risk profile, and brand contribution
BRAND STRENGTH
(Differentiation and Relevance)
Brand Health Is Captured on
the Power Grid
Niche/
Unrealized Potential
Power Leaders
Declining
Leaders
New
Eroded
Unfocused
BRAND STATURE
(Esteem and Knowledge)
Branding strategy
Building
Brand Strategy
• Branding strategy is critical because it is the
means by which the firm can help
consumers understand its products and
services and organize them in their minds.
• Two important strategic tools: The brandproduct matrix and the brand hierarchy
help to characterize and formulate branding
strategies by defining various relationships
among brands and products.
Depth of a Branding
Strategy
Brand-Product Matrix
• Must define:
– Brand‐Product relationships (rows)
• Line and category extensions
– Product‐Brand relationships (columns)
• Brand portfolio
1
A
Brands B
C
Products
2
3
4
• The number and nature of different brands marketed in the product class sold by a firm
• Referred to as brand portfolio
• The reason is to pursue different market segments, different channels of distribution, or different geographic boundaries
• Maximize market coverage and minimize brand overlap
2
2/18/2012
Ford Brand Portfolio
Ford Brand Portfolio
Designing a Brand Portfolio
• Basic principles:
– Maximize market coverage so that no potential customers are being ignored
– Minimize brand overlap so that brands aren’t competing among themselves to gain the same customer’s approval Brand Hierarchy Tree:
Toyota
Toyota
(SUV/vans)
Toyota
(Cars)
Toyota
Financial
Services
•
•
•
•
Flankers
Cash cows
Low‐end entry‐level
High‐end prestige brands
Brand Hierarchy Levels
Corporate Brand (General Motors)
Toyota
Corporation
Toyota
(Trucks)
Brand Roles in the Portfolio
Lexus
Family Brand (Buick)
Individual Brand (Park Avenue)
Corolla
CE
S
LE
Camry
SE
LE
XLE
Avalon
Platinum
Edition
XL
XLS
Celica
SE
SLE
ECHO
Matrix
MR2
Spyder
Prius
Modifier: Item or Model (Ultra)
3
2/18/2012
Corporate Brand Equity
• Occurs when relevant constituents hold strong, favorable, and unique associations about the corporate brand in memory
• Encompasses a much wider range of associations than a product brand
Corporate Image Dimensions
• Corporate product attributes,
benefits or attitudes
– Quality
– Innovativeness
• People and relationships
– Customer orientation
• Values and programs
– Concern with the environment
– Social responsibility
• Corporate credibility
– Trustworthiness
– Likability
CLOSING OBSERVATIONS
Analyse
Select the strategy
Control 4