To Brand or Not to Brand?
Concepts and Rules for Building the
Killer Brand
Chapter 11
Some Important Concepts…
• Brand Name: The part of a brand that can be
spoken including letters, words and numbers.
• Brand Mark: The elements of a brand that cannot
be spoken
• Brand Equity: The value of company and brands
names.
• Master Brand: A brand so dominant that it comes
to mind immediately when a product category,
use, attributes or benefit is mentioned.
A look at Master Brands
Baking Soda
Adhesive Bandages
Rum
Gelatin
Arm & Hammer
Band-Aid
Bacardi
Jell-O
Soup
Campbell’s
Cream Cheese
Philadelphia
Crayons
Petroleum Jelly
Crayola
Vaseline
Brand Mark
Logo/Name
So what is it exactly…
• Attributes, benefits, values, culture,
personality and user
• Research techniques: word
associations, personifying the brand,
laddering up the brand essence
Benefits of Branding
• Branding distinguishes products from
competition
• Product Identification
• Aids in repeat sales
• Aids in new product sales
• Aids in attracting loyal customers and
segments
• It is the image, baby!
What is Brand Equity??
A set of assets and
liabilities linked to a brand’s name
and symbol that add or subtract
from the value provided by a
product or service to a firm and/ or
that firm’s customers.
Aaker, David A. (1991), Managing Brand Equity: Capitalizing on
the Value of a Brand Name, The Free Press, New York
Brand
Equity
Associations
For more see:
Aaker, David A. (1995), Strategic
Market Management,
4th ed., Wiley, NY
The World’s 10 Most Valuable Brands – Interbrand
8/5/02
Rank
Brand
Value (billions)
1
Coca Cola
$69.6
2
Microsoft
$64.1
3
IBM
$51.2
4
GE
$41.3
5
Intel
$30.9
6
Nokia
$30
7
Disney
$29.3
8
McDonald’s
$26.4
9
Marlboro
$24.2
10
Mercedes
$21
Benefits of Brand Equity
• Leverage when bargaining with distributors
and retailers
• Charge higher price for product
• Launch extensions
• Some defense against price wars
• Brand valuation
Faithful or Fickle?
A look at brand loyalty
•
•
•
•
•
•
•
Cigarettes
Mayonnaise
Toothpaste
Coffee
Athletic shoes
Canned veggies
Garbage bags
71%
65%
61%
58%
27%
25%
23%
Branding Decisions
•
•
•
•
•
Brand or not to brand?
Brand sponsor decision
Brand name decision
Brand strategy decision
Brand repositioning decision
Branding Strategies
Brand
Manufacturer’s
Brand
Individual
Brand
Family
Brand
No Brand
Private Brand
Combination
Individual
Brand
Family
Brand
Combination
Brand Strategy Decisions
• Line extensions –
existing brand to
new sizes, forms,
flavors etc.
• Brand extensions –
brand names
extended to new
product categories
• Multibrands –
flanker brands
• Cobranding –
combination of two
or more brands
• New brands
Three Questions to Ask
• Krispy Kreme
• Starbucks
So How do You Do This??
Some tips from “Brand Warfare:
10 Rules for Building the Killer
Brand” by David D’Alessandro
R1: It’s The Brand, Stupid
• Brand arrogance was once
commonplace
– Brands that were once invincible are shadows of
their former selves (ABC, CBS, NBC)
• The consumer revolution
– Consumer attitudes changed – don’t trust “big”
– Cheaper to enter business and create brands
(amazon - $300,000)
– Information access for consumers
• When the consumer rules, arrogance
kills
– The power of choice & importance of
differentiation
R2: Co dependency can be Beautiful…
• People pay attention to brands – they
need them
• Brands save time
– Think OTC drugs
• Brands project the right image
– “No one can fault you for buying an IBM”
• Brands provide an identity
– Brand communities (Harley; Ebay); comfort
levels
R3: A Great Brand Message is Like a Bucking Bronco – once
you are on, don’t let go…
• Brand New? Who is it going to be. Brand
Old? What is it and where should it go.
Which is easier??
• Its not the idea that rules, it’s the execution
• Brand message has to speak to consumers
• Keep it relevant and consistent
R4: If you want Great advertising, be prepared to fight
for it
• Beware of flatterers
• It is not necessarily good advertising that the
client is after
• Be memorable
• Don’t change the advertising because you
are bored with it.
R5: When it comes to sponsorships, there is a sucker
born every 30 seconds
• Get in for the right reasons
• Understand the players
– The event organizer, TV Networks, the
athletes and their entourages
• Look for a balance of power
R6: Don’t Confuse Sponsorship with a Spectator
Sport
• Use the sponsorship every day in every
way
• Set the right expectations
• Make sure you achieve something
measurable and real
R7: Do not allow scandal to destroy in 30 days a brand
that took 100 years to build
• Brand is destiny
• Do not allow your enemies to define you
• Do not stall. Do not allow the lawyers to
stall.
• You can run – but you cannot hide