Chapter 3
Branding Strategy
1

The Brand
“The sum of all characteristics, tangible and intangible, that make the offer unique.”
Starbucks Brand Name
Word Mark
Brand Logo
Trademark
™ Legally Protected Marks
2

Views on Brands
“A name, logo, or symbol that evokes in customers a perception of added value for which they will pay a premium price.”
John Torella, J.C. Winters Group, Toronto
“A product with a personality.”
Chris Staples, Rethink, Vancouver
Marketing communications in any form has an impact on customers’ perceptions.
3

Benefits of Branding
For customers a brand offers:
1. A desired level of quality consistently
2. Psychological rewards from ownership
3. A means of distinguishing one brand from another
The brand image helps create loyalty.
4

Benefits of Branding
For the company branding offers:
1. A means of communicating features and benefits
2. An opportunity to create and sustain an image
3. Customer satisfaction and repeat purchase opportunity
5

Brand Loyalty
“The degree of consumer attachment to a brand.”
Recognition
Preference
Insistence
Awareness of name, benefit and package
Is useful, consumer will buy if available
Will search for; must have
6

Brand Equity
The value of a brand in its holistic sense to its owners as a corporate asset. Brands have value.
Equity is derived from:
• Effective marketing strategies
• A brand’s status in the marketplace
• A brand’s position among customers
7

The Top 10 Global Brands
1. Coca-Cola
2. Microsoft
3. IBM
4. GE
5. Intel
6. Nokia
7. Disney
8. McDonald’s
9. Marlboro
10. Mercedes
$70.4
$65.1
$51.8
$42.3
$31.1
$29.9
$28.0
$24.7
$22.2
$21.4
The highest ranking
Canadian brand is
Bombardier but it is not in the top 100 yet.
Source: Globe and Mail, July
25, 2003.
8

Brand Building
1. Identify Brand Values and Positioning Strategy
2. Plan and Implement the Marketing Program
3. Measure and Evaluate Brand Performance
4. Build Brand Loyalty and Brand Equity
9

Brand Positioning
“The selling concept that motivates purchase, or the image that marketers desire a brand to have in the minds of consumers.”
A good positioning strategy clearly differentiates a brand from all competing brands.
10

Core Values
The primary attributes and benefits a brand delivers to the customer
Nike: Inspiration and innovation
Tide Laundry Detergent: Removes really tough stains from any material
11

Positioning Strategy Statements
A good positioning strategy statement is:
• Clear
• Concise
• Uncomplicated
• Addresses target needs
• Communicates a key benefit
12

Sample Positioning Statement
“To reinforce our position in the credit card market, and to establish it as the preferred choice for all future purchases.”
VISA
All you need
13

Positioning
Well positioned brands:
• Are distinctive and different from competition
• Have sharp focus and personalities
• Are not commodities
14

Well-Positioned Brands
• Communicate a distinctive benefit that differentiates them
• Focus and sacrifice. They don’t try to be all things to all people
• Develop expertise that serves as a magnet to attract others
15

Positioning Definition
Consumers ultimately position a brand based on their perceptions and experiences with the brand .
16

What is my positioning?
Volvo
Cover Girl
Federal Express
Dove Beauty Bar
Michelin Tires
State Farm Insurance
Carlsberg Beer
Mojo radio
Vector cereal
Pork safety clean, fresh, natural beauty reliable overnight delivery gentle clean safety reliable friend when in need beer for grown ups talk radio for guys great tasting fuel, for serious athletes the other white meat
17

What is my positioning?
Volvo
Cover Girl
Federal Express
Dove Beauty Bar
Michelin Tires
State Farm Insurance
Carlsberg Beer
Mojo radio
Vector cereal
Pork safety clean, fresh, natural beauty reliable overnight delivery gentle clean safety reliable friend when in need beer for grown ups talk radio for guys great tasting fuel, for serious athletes the other white meat
18

The Importance of Positioning
Market
Analysis
Product
Strategy
Target Market
Analysis
Competitor
Analysis
Price
Strategy
Positioning
Strategy
IMC
Strategy
Distribution
Strategy
19

Positioning Strategies
• Product Differentiation
• Brand Leadership
• Head-On
• Innovation
• Price (Value)
• Channel Advantage
• Image (Lifestyle)
20

Develop a positioning strategy statement for:
 Wal-Mart
 La Senza
 Apple
 Gatorade
21

Branding and IMC
There are two key decision areas:
1. Determining the appropriate brand elements to focus on (names, packaging, symbols and characters).
2. Devising an effective marketing communications strategy to communicate the brand’s values and positioning strategy.
22

Packaging and Brand Image
A good package design helps build a brand.
1. The “look” of a package must be instilled in the customer’s mind.
2. A package can differentiate one brand from another.
3. Familiarity with a package creates trust with customers.
4. New packages create new products (product forms).
23

Packaging is More Than a Container
24

Roles of Packaging
A good package serves three primary functions:
1. Protect the product
2. Market the product
3. Provide convenience to distributors and consumers
25