SECTION 5
Brand Management and the Firm
Brand Types and Characteristics
ALAN L. WHITEBREAD

• Brand identity
– Who are you? Steve Jobs oldie video
– It should be positive, memorable, protectable, not myopic or time-based, and transferable.
• Brand meaning
– What are you?
• Brand response
– How do I think or feel about you?
• Brand relationships
– What type of a connection do we have?

• BRAND IDENTITY FORMS
– The corporate brand is the only brand name used
• Frequently seen in B2B
– The company and the brand are together
• DuPont Teflon, IBM Blade Server, Philips, Siemens
– The combination brand by Company X
• Product name by Company X [common in acquisitions]
– The individual/product brand with minor mention of
Company X
• Clairol, Crest, Folgers, Noxzema, Pampers, Puffs, Tide –
Proctor and Gamble
– The brand represented / distributed by X
• A common practice in B2B [especially in resellers] especially when they use “authorized”

GENERIC
Pharmaceuticals, Vegetables
+CORPORATE / FAMILY
Nike, IBM, GE, RCA
+INDIVIDUAL / PRODUCT
Huggies, P&G soaps, Crest
BRAND LICENSE
Disney
+COMBINATION
HP Deskjet, DuPont Stainmaster
PRIVATE LABEL
Kenmore, Craftsman, Die-Hard
Great Value, …
CO-BRANDING
Post Oreo O’s cereal, Disney SUV
INGREDIENT BRANDING
Ingredient name + brand name
NutraSweet diet drinks, Dolby sound system

Are generally a threat only to brands that are
1. Overpriced
The value equation is wrong because the real or perceived benefits are not sufficient.
2. Under-supported
Very small IMC relative to what is needed to build or sustain a brand.
3. Undifferentiated
Very poor differentiation [if any] and probably some combination of bad POP, IMC, …

GE
®
GE
®
GE Profile TM
GE Spacemaker TM
Hotpoint ®
GE Monogram
®
Electrolux
®
Electrolux Icon
Gibson
Kelvinator
White-Westinghouse
Frigidaire
Frigidaire Gallery
Frigidaire Professional
Tappan
®
Whirlpool
®
Roper
®
Estate
®
Whirlpool
®
Whirlpool Gold
®
KitchenAid
®
KitchenAid BRIVA
®
[In-sink dishwasher]
Maytag
®
Admiral
Jenn-Air
®
Jenn-Air Pro-Style
®
Magic Chef
Maytag Jetclean
®
III
Maytag Jetclean ® II
Maytag Jetclean
®
Kenmore
GE
Kenmore
Kenmore
Kenmore Elite
Kenmore UltraWash
®
Norge
Hardwick
See http://www.ajmadison.com/cgi-bin/ajmadison/item_list/cat00263/Built_In_Dishwashers.html
for more.
See http://www.appliance.com/dishwashers/list.html
for a list of firms.

• PRIVATE LABEL NOTES
– Some people differentiate a private label brand as one that identifies the source of the product and a generic brand as one that does not identify the source. [honey at Wal-Mart]
– Private labels are called store brands for retailers.
– Private labels for wholesalers and distributors may or may not have detailed specifications and may or may not identify the source of the product.

• PRIVATE LABEL BRANDS
– Manufacturer’s brands [OEM]
• Manufacturer A makes products for Manufacturer
B so the market believes Manufacturer B is making the products.
– ?
– Reseller’s brands
• B2B
– Nearly all mail order firms
• B2C
– Sears Craftsman tools, DieHard batteries, and Kenmore appliances / almost all retailer brands

• PRIVATE LABEL BRANDS
– Counter brands or Generic brands
• Usually the same ingredients as the major brand and imitates it in nearly all aspects – same size package, information is identical and in the same place, etc.
– Wal-Mart Equate brand
– Fakes or Knock-offs
• Illegal versions of usually major brands
– CDs, movies, software, …
– CBP video

• Most are unknown by the average consumer.
– Known: Alcoa, Intel,
– Unknown: FMC, Lexan, TIVAR
• Important considerations
– Company reputation and financial stability
– Capacity, flexibility, service level[s]
– NPD

• Vision [includes purpose / need fulfillment]
• What makes it different?
• What makes it recognizable?
– This is a part of but not the same as identity
– As seen from sender’s side!
• Sight
– Graphic symbol [logo]
• Sound
– Name
• Slogan or tag line
• Must penetrate the noise.

• Each of these approaches is too limiting or tactical.
BRAND
IMAGE
[tactical]
How the brand is currently perceived
[The customer determines who you are]
BRAND
IDENTITY
[strategic]
How we want the brand to be perceived
[Must be a visionary positive projection]
BRAND
POSITION
[enduring]
The part of the brand identity and value proposition that is communicated to the target audience.
[a focus on attributes
[features] restricts the brand identity]

• Brand image [as seen from receiver’s side]
– Perceptions of the product
– Must not be distorted by the noise
– If you are doing a great communications job, brand image will be very close to the brand identity.
– Understanding the receiver’s side
• Use a Mental map / Mind map
– A graphical technique that takes advantage of the brain’s associative capability not just is linear capability.
– Tony Buzan Mind Map [Concept Mapping] video

Children
Sticky
Sweet
Lemon
Adult
7-Up
Bittersweet
Fresh
Thirst quencher
Carbonated
Cool
Sparkling
Do run-flat tires as a quick one as a class exercise.
http://www.autoevolution.com/news/michelin-tweel-airless-tires-production-starts-will-motorcycles-get-them-video-89369.html#

• Increased customer loyalty
• Increased brand recognition
• Stronger competitive position
• Larger gross and pre-tax margins
• Increased trade cooperation [ channel strength / channel members]
• Increased IMC effectiveness

• a corporate brand
• brand extensions
• product line extensions
• licensing and / or franchising

• Four key questions must be answered before you begin to evaluate positioning alternatives.
– Why does the brand exist?
• Brand identity
– Who is the brand for?
• Market segmentation; market profiles [descriptions]
– Why are the benefits meaningful?
• Market research to determine rank order
– What are we competing against?
• SWOT analysis; competitive analysis; product charts

• Why does the brand exist?
– The brand vision [brand promise for the consumer].
• NIKE
– “self-realization through exercise” → I care about doing my best
– Brand benefits must be rank ordered by perceived value for each target market [segment].
• Who is the brand for?
– Precise market segmentation and target marketing are required.

• Why are the benefits meaningful?
– What proof exists?
– Are they in rank order starting with the most important?
– How are the benefit messages conveyed?
• What are we competing against?
– You must understand the nature of competition.
• By level [direct, various indirect]
• By product for direct competitors
• By company [by probability of competing and how they compete]
• By substitute products

• Six criteria should be used to do this.
1. Memorable : easy to recognize and recall
2. Meaningful / descriptive / interesting / rich in visual and verbal imagery
3. Likeable aesthetically and emotionally
4. Transferable within and across product, geographic, or cultural boundaries
5. Adaptable , flexible over time to keep from becoming stale or outdated
6. Legally and competitively protectable [IP]

• When you have positioned a brand correctly, it has all of the following characteristics.
– Recall [physically, imagery, familiarity]
– Personality [character]
– Culture [group]
– Relationship [meaning to the customer]
– Customer reflection [perception]
– Self-image

• Vision [includes purpose / need fulfillment]
• What makes it different?
• What makes it recognizable?
– This is a part of but not the same as identity
– As seen from sender’s side!
• Sight
– Graphic symbol [logo]
• Sound
– Name
• Slogan or tag line
• Must penetrate the noise.

13+ = 5 10-12 = 4 7-9 = 3 4-6 = 2 <4 = 1 point[s]
Take out a sheet of paper.
Print your name at the top.
Number the rows from 1 through 15.
Print your answers for each of the following on the correct line.
Major brand or company names only. No product names.

3
1
2
4

5
6
7
What can brown do for you?
8

11
9
10
Bright red retail store Mustard yellow heavy industrial products
12
Paper and medical products and a red logo
Deep green industrial products

13
14
Bright orange retail store Robins egg blue box
15
Logo in a bright red ball

3
1
Ferrari Nabisco or Oreo
2
4
Burger King Mars candies

5
Starbucks Nike
6
7
What can brown do for you?
8
UPS McDonald’s

11
9
Target Caterpillar
10
Bright red retail store Mustard yellow heavy industrial products
12
Paper and medical products and a red logo
3M Corporation
Deep green industrial products
John Deere

13
Home Depot Tiffany
14
Bright orange retail store Robins egg blue box
15
Logo in a bright red ball
Coca-Cola