Managing and Developing Brands

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Contents

Using this guide

Introduction

Checklist

Case studies

The Chartered Institute of Marketing 2003

Surely every brand has to die sometime!

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5. MANAGING ANDDEVELOPING BRANDS
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5. MANAGING AND DEVELOPING BRANDS

2

Contents

> Using this guide

> Introduction

> What is brand management?

> Brand management or brand strategy what comes first?

> Brand management top-down orbottom-up approach?

> The brand plan

> Some brand management scenarios

> Checklist

> Case studies

Defining brands

Types of brands

How brands work

Brand strategy

Managing anddeveloping brands

Brand portfolio andarchitecture

Measuring brands andtheir performance

eGUIDE 7

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eGUIDE 4

eGUIDE 5

eGUIDE 6

eGUIDE 1

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Using this guide

Navigation

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There is no defined lifecycle for a brand and

they can, in theory, liveforever.



5

Introduction

Surely every brand has to diesometime!If left to their own devices, most brandsinevitably find themselves in a state of declineas they lose relevance or competitors stealmarket share. Imagine if the Levi's brand hadbeen left as it started and Levi's were stillmarketed as hard wearing trousers for miners would the brand still be as successful as it istoday?

But brands don't have to die. Unlike products,there is no defined life cycle for a brand andthey can, in theory, live forever. Brands areprecious they are often a company's mostvaluable asset and by carefully controllingand tweaking them, in line with the brandstrategy, they can be protected from declineand nurtured into growth. That is the ultimatepurpose of brand management and

development.


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Brand managementstands at the junction of

company and customerand must integrate the

totally differentperspectives of the two

worlds.



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What is brand management?

>Brand management is a process that takescontrol over everything the brand does andsays, managing the way in which it isperceived by others. This involves identifyingclearly what the brand stands for, and howto position it so that it appears different andbetter than competing brands. It requiresconstant tracking of the brand and itscompetitors, the integration of allcommunications, and the management ofeach contact point a consumer may have

with the brand. The overall aim of thisprocess is to increase the value of the brandover time. [Temporal, 2002]

>Products might be mortal and governed by alifecycle, but successful brands can escapethe effects of time. That only happens withconstant investment and innovation to keepthe brand relevant, and the delivery of brandconsistency over time. Continuity is essentialto the brands formation and longevity.[Kapferer, 1992]

>Brand management stands at the junction ofcompany and customer and must integrate

the totally different perspectives of the twoworlds. Balances have to be struck betweenthe external market and internal capabilitiesof the company, between the companysinputs into the products and the influenceson consumer perception, and between short-term satisfaction for various stakeholdersand the long-term growth of the brand.[Arnold, 1992]

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The traditionalorganisational model

simply does not fit with

world-class brandingtoday.



7

Brand management or brandstrategy what comes first?

eGuide 4: Brand strategy

>Every aspect of brand management shouldbe driven by the overall brand strategy.Other-wise it is easy to end up with confusedimages and perceptions of the brand.Strategy gives focus and direction to brandmanagement and provides the platform thatenables brand managers to gain consistencyin all their brand-related activities.

[Temporal, 2002]

>Traditionally, business objectives andcorporate vision were developed in theboardroom, with little insight into consumerwants and needs, and branding was just asupport activity responsible for advertisingand promotion. The traditional organisationalmodel, which has a department as custodianof the brand and a different department ascustodian of the people, simply does not fit

with world-class branding today. The mostprogressive companies increasingly work in anetworked or cross-functional way. Thisenables the company to look at the way in

which the brand promise is delivered tocustomers in a more holistic way.

[CIM/Maritz, 2002]

The new model of brand managementrepresents this shift, where consumer insightdrives the overall vision and mission of abrand and this in turn translates to businessstrategy and all related activities (see Figure5.1).

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Top-level managementsupport is obviously

essential if a brand-ledbusiness approach is to

have any chance ofsuccess.



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Brand management top-down orbottom-up approach?

Winning teams use the brand as anorganisational blueprint for the growth that isled from the very top of the company. The fullpotential of branding to drive growth is onlyrealised when it is used to engage and alignthe resources of the company in deliveringvalue for consumers and shareholders alike. Totruly lead the business, brand strategy needsto influence all day-to-day activities, whether ahigh profile advertising campaign or the ways

in which helpline teams answer the phone.Top-level management support is obviouslyessential if a brand-led business approach is tohave any chance of success. Managers need toview key business decisions against financialcriteria, but also against the brand promise.[Taylor, 2003]

The successful European companies wevestudied share one critical characteristic senior managers drive the brand... and as a

result integrate brand building into the overallconcept. In contrast, many US companiesdelegate the development of the brand tosomeone who lacks the clout and incentives tothink strategically. Or they pass the task to

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Figure 5.1: Brand link to corporate strategy inthe 21st century

Source: Temporal (2002)

BUSINESS STRATEGY

BRAND VISION AND MISSION

CUSTOMER RELATIONSHIP STRATEGY

MARKETING


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Powerful brands arecharacterised by

enthusiastic leaders whohave a passionate belief

in a few values.



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their agency. Relying upon their agency leadsto two problems. First, in most cases it creates

a dissonance between senior managers andtheir key asset, the brand, the driver of futuregrowth opportunities. That distance can makethe co-ordination of efforts difficult, a situationthat can result in consumer confusion, loss ofsynergy and ultimately performance that fallsshort of potential.[Aaker, 1994]

Staff look to strong leaders for guidance andpowerful brands are characterised byenthusiastic leaders who have a passionate

belief in a few values. By not just talking aboutthese values, but rather living them,employees appreciate how genuine thesevalues are and are more likely to becommitted to delivering them. Placing moreemphasis on internal brand managementthrough aligning staff values with brand valuesminimises the often-cited problem of variablequality between employees. It facilitatesunified behaviour and minimises surprises ascustomers encounter variants on the brandpromise from different employees. A furtheradvantage of having a focus on brandmanagement and looking more inside theorganisation is that it gives rise to a corporatepersona with a deeply felt set of values

enabling the brand to have a clear attitude.[de Chernatony, L., 2001]

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[Brand positioning]inspires and guides the

team, giving a clearpicture of both the job

the brand needs to doand the human side to

be reflected intone and feel.



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The brand plan

The most effective way to determine andcommunicate the value of your brands toothers is to create a brand plan that includesobjectives, strategies, tactics andmeasurements.[LePla and Parker, 2002]

Defining the brand and its marketposition

eGuide 3: How Brands work: Brand positioning,image and identity

Positioning is a process of ensuring that abrand can fight through the noise in themarket and enables the brand to occupy adistinct, meaningful and valuedplace inthe target customers minds.[de Chernatony,L., 2001]

Brand positioning plays a vital role in keeping

a brand on track towards its destination. Itpinpoints what makes the brand motivating,different and true for target customers. Indoing so it should inspire and guide the teamto help them develop a competitive andcoherent brand. When positioning is clearlydefined, it can be a central tool for helping

boost return on brand investment. It inspiresand guides the team, giving a clear picture of

both the job the brand needs to do and thehuman side to be reflected in tone and feel.The choice of tool for defining a brandsposition is of little importance. What isimportant is that within a company everyoneuses the same tool definition and format.Speaking the same language is crucial tofacilitate effective communication. [Taylor,2002]

The different elements of positioning (essence,

values, personality, promise, benefits, brandtruths, consumer insight, market definition,target consumer) should come together as acoherent whole. In the case of most strongbrands, positioning is underpinned by brandtruths, providing real substance and contentthat can be the starting point for a compellingand unique story. [Taylor, 2002]

Case study: Barrs Irn-Bru

When managing a brand, the external orinternal circumstances may call for somechanges in the execution of brand strategy,brand refreshment or rejuvenation, but thevalues underpinning positioning should remainconstant. [Taylor, 2002]

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Figure 5.2 Example positioning tool(pick your own shape)

Source: Taylor, D. (2002)The Brand Gym.

London, John Wiley & Sons

Market definitionThe product and serviceareas in which the brand

wants to operate. Who willlose if we win?

1. Insight foundation

2.Jobofthebrand

3.Humansideofth

ebrand

4. Rallying calls

EssenceShorthand distillation

of the brandsreason to

exist

ValuesFundamental,

guiding principlesand beliefs

PersonalityHuman characteristics

guiding tone, feeland style

BrandpromiseSummary of what

the brand offers and whyit is better than alternatives

BenefitsThe key motivations

for buying thebrand

Brandtruths

Features, attributesand properties that

help underpin the promise

Core insightHuman truth that opens door to opp-

ortunity for your brand to improve everyday life

Consumer targetPositioning: person thebrand must excite and

involve. Consumption:broader group of buyers


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Figure 5.3a: Positioning tips and tricks

continued/

Insightfoundation

Jobofbrand

Marketdefinition

Positioningtarget

Core insight

Brand truths(limit to 2-3)

Benefits(limit to 2-3)

Full view of realcompetitionIdeas for stretch

Empathy with the coreconsumer, understandtheir life

Open the door to anopportunity to improveeveryday life

Development of productfeatures and attributes

Product development,communication emphasis

Who wins when we lose?Use benefits not justproduct terms

Capture attitudes,values, colour

Describe a human truthand how this opens adoor for the brand

Add colour and emotion

Be specific and concrete

Specific reasons for purchase,not reasons to believe

VideotapesBlockbuster

AB women aged 25-45Knorr

Parents worry aboutnappy rash Pampers

Good serviceBlockbuster

Pro-vitamin B5;doesnt dry hair Pantene

Rentable homeentertainmentBlockbuster

Food enthusiasts whoenjoy good food butare pressed for time Knorr

People who are concernedabout their baby having awet bottom and getting

nappy rash as this makesthem worry about not beinga perfect parent Pampers

Blockbuster promise:Get the film you want or hireit for free next time

Hair so healthy it shinesPantene

Inspires and guides Tips and tricks Bad examples Good examples


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Figure 5.3b: Positioning tips and tricks

Source: Taylor, D. (2002)The Brand Gym. London, John Wiley & Sons.

Humanside

Rallycalls

Values(limit to 2-3)

Personality(limit to 3-4)

Promise(limit to 15-20 words)

Essence(limit to 2-4 words)

Issues to campaign on,brand behaviours withcustomers

Guide tone, feel and styleof communication andfront-line staff

Key summary inputfor briefs

Shorthand check forreviewing the brand mix

Make them provocativeand polarising

Make them colourfulnot bland

Focused on what it is andwhy it is better. Inject colour,emotion and edge

Capture emotion not justfunction, inspire future growth

Quality, teamworkPrt Manger

Reliable, honest,friendlyClearasil

Affordable short-break holidayoffering best combination ofactivities for all the family DLP

Best shaveGillette,male attractiveness Lynx

Setting the bar high,one for all, all for onePrt Manger

Solid as a rock, straightas an arrow, best mateClearasil

Magical place where everyonecan live out adventures theyhave dreamt off DLP

Ultimate performanceGillette, pulling power Lynx

Inspires and guides Tips and tricks Bad examples Good examples


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Performance of the product/service inrelation to the brand promise

Customers experience brand behaviour notbrand plans.[Stagliano, A. and OMalley, D.,2002]

At the heart of the brand is the promise that itmakes to its customers. Companies keep theirpromises by understanding their brands andacting on that understanding in everyendeavour. That promise is carried out bypeople at all levels of the company from CEO

to the line worker so that integratedbranding is much more than communicationsstrategy or a set of messages. When brandpromise meets customers in an integratedway, through products, services,communications and culture, it producesunique and valuable customer relationships.[LePla and Parker, 2002]

Successful branding is not just aboutcommunicating a unique personality or brand

identity. It is about delivering the promisemade to customers, and that makes it aresponsibility of everyone in the company.These brand promises are no longer justempty advertising slogans. They are the heart

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Figure 5.4: Facilitating an integrated brand through addressingfour key brand communicators (adapted from Wolff Olins, 1995)

Source: de Chernatony, L. (2001) From Brand Vision to Brand Evaluation.

London, Butterworth-Heinemann.

BRAND

VALUES

PRODUCT/

SERVICE

STAFF

BEHAVIOUR

COMMUNICATIONS ENVIRONMENT


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and soul of the brand. They are the things thateveryone in the organisation is charged withdelivering. Thus branding is no longer justsending the messages, its living the brandevery day in every way.[Schultz & Schultz,2001]

Internal alignment behind the brandpromise

Mobilising the people in the organisationbehind the brand is the key to achievinggrowth. This requires taking people on a

journey of commitment from rationalunderstanding through emotional engagementto alignment of behaviour. [Taylor, 2002]

No matter how strong the insight, vision andstrategy are, without motivating and directingthe people in the organisation it is impossibleto deliver the brand promise consistently. Moreand more people are using internalcommunication to try to encourage people to

live the brand. Many of those are falling into

the trap of talking about the vision without anyeffect on the way a business is run, whichamounts to a cosmetic cover-up of problemswithin the organisation. In the same way thatconsumers are disappointed when a product

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Figure 5.5: Brand engagement

Source: Poundsford, M. (2001) Engaging your workforce. Brand Strategy, Feb, p.12.

BRANDENGAGEMENTBEHAVIOURAL

My role is clearI know how to treat

customersThe key messages

I need to communicateare clear

Lack ofdiscretion and

consistency

Lack ofcommitment,energy and

passion

Lack of

action

INTELLECTUALI understand our brandI know what we stand forI know how we are differentI know where we are goingAnd how we will get there

EMOTIONALThe brand fits my

valuesI belong hereI live the spirit of

this company


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fails to live up to the promise made incommunication, the same goes for theemployees and the company they work for. Inreality, such internal communication has alimited role to play in engaging and aligningpeople with the brand.

You dont create a culture, you catch it like avirus. People see new behaviours and copythem until they become the way we do thingshere[Phil McManus, head of internalcommunication at Vodafone]

Integrated brand communications

Central to modern marketing management isthe concept of integrated marketingcommunications; the planning and executionof all types of communication to meet acommon set of objectives for the brand. The

aim is to support a single positioning throughadvertising, PR, or co-branding. A holistic viewof the brand should be pursued. This is not tosay that there must be one rigid, omnipotentmessage, rather it suggests that the messagesconveyed by different media need tointerconnect. They all need to tell broadly thesame story. There is nothing to be gained frompromising one thing in your advertising andnot being able to deliver at the point of sale.In fact, there is nothing worse for a brand

than empty promises.

Another reason for adopting integrated brandcommunications is that messages aimed atone audience are increasingly seeping out into

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Figure 5.6: Integrated marketing communication and the brand

Source: Macrae, Ch. (1996) The Brand Chartering Handbook. Essex, Addison Wesley, p. 377.

BRAND

VALUES

DIRECT

RESPONSE

DIRECT

MARKETING

PUBLICITY

AND PR

POINT-

OF-SALE

MEDIA

ADVERTISING

PACKAGING

AND

DESIGN

SALES

PROMOTION

EVENT

MARKETING


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Employees are the mostdirect link between the

brand and its customers.



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the spheres of other audiences. It would bemisleading to think of different stakeholdergroups (eg, employees, consumers,shareholders) as isolated and mutuallyexclusive groups. Arguably, as much attentionshould be given to managing the employeebrand as to the consumer brand, asemployees are the most direct link betweenthe brand and its customers. [Uncles, 1996]

Five points to remember whenimplementing integrated marketingcommunications:

>Audiences will attempt to interpret themessages you send, but not necessarily inways that were originally intended.

>It is the task of management to maximisethe interpretation of intentional messagesand minimise the interpretation ofunintentional messages.

>To do this effectively the process needs to be

managed from the centre. The brand needsto embody a vision or mission.

>All audiences should be informed and involveemployees and shareholders, as well ascustomers and consumers.

>All audiences interact and interconnect;indeed, because the same person often hasdifferent roles, brand communications oughtto be broadly consistent across theseaudiences. [Uncles, 1996]

Maintaining brand integrity acrosstouch points

The way we interpret the body language ofbrands means that the apparently trivial canbe greatly significant.[Bullmore, 2001]

Advertising, packaging, price and promotionshave this in common: they are all within thecontrol of the marketing company. To be rathermore accurate: the transmission of thesebrand stimuli is within the control of themarketing company. The reception however, isnot. [Bullmore, 2001]

However, there are other factors which lieoutside the brands control, but their effect onthe public can be significant. Because they are

impossible to foresee or orchestrate, they tendto be totally ignored. Examples of theseinclude: a story in the press about racialdiscrimination or unethical employmentpractices at a brands factory, an anti-brandcrusading website, a product recall for safety

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Because so muchdepends on having aproduct in the right

place at the right time,it is necessary for

manufacturers to takethe retailers reaction to

products into account.



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reasons, dangerous driving by a clearlybranded truck, or two cars of the same makebroken down at the roadside within a mile ofeach other. Most chance encounters arenegative in impact; and every single one ofthem will have some lasting effect on thepeoples aggregate belief in the brand andtherefore on its success and profitability.

Future prizes will go not just to those whomake the fewest errors, but also to those whorecover, apologise and take corrective action.Intelligent, informed and trusted staff can turn

even a catastrophic brand encounter into areinforcement of brand loyalty. [Bullmore,1999]

Distribution

In the field of consumer goods that do notrequire much consumer involvement, it is nolonger the consumer who is solely responsiblefor the success and failure of a brand, butdistributors. In deciding whether or not to give

room to a new brand, they are the ones whocan cause it to fail. They are also the oneswho can cause the premature decline of a newbrand if they judge its turnover to be toosluggish. Manufacturers brands now also need

to compete with distributors own brandswhich offer higher margins to retailers.Because so much depends on having a productin the right place at the right time, it isnecessary for manufacturers to take theretailers reaction to products into account anddevelop a mutually beneficial relationship.

Brand protection

Intellectual property what is it?

>Intellectual property (IP) rights provide legal

protection for some of the most importantaspects of a brand. They protect, forexample, the name, logo, label designs,packaging shapes, advertising, slogans,domain names and sometimes the productitself. Even sounds and smell can beprotected if they are distinctive.

Case study: Remington vs Phillips

>These rights are essentially preventative in

effect: they prevent a third party doingsomething they would otherwise be able todo. the purpose is to encourage investmentand innovation and to discourage copying.

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>IP may be bought, sold, mortgaged orleased just like tangible property such asland. This is usually called assigning or

licensing and can be an important businessopportunity and source of income.

>Rights tend to be national with every countryhaving its own laws (with exceptions like theCommunity Trade Mark in the EU). Owning aright in one country does not necessarilymean the right is held in another country.

>The main rights associated with brands are:

>Trademarks (registered or common law)>Copyright and database rights>Designs>Patents>Unfair competition/passing off>Trade secrets/confidentiality.

>Although not an intellectual property right,domain names on the Internet provideimportant signposts to the brand, requiringcareful management.

Best practice

Trademarks

>Choose new trademarks carefully.

>Make sure they arent being used by others.

>Register the trademark.

>Make sure you use them correctly.

>Control their use when licensing.

>Take action against misuse immediately.

Copyright

>Ensure that with any creative work from anoutside supplier the copyright is transferredto you.

>When merchandising copyright material,control and monitor usage.

>Where possible find ways to incorporatesmall but deliberate mistakes to provecopying has taken place.

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>Take action on copying immediately.

Designs

>Apply for design registration as soon aspossible certainly within 12 months of

publicly disclosing the design.

>For Unregistered Design Right, record thedesign in a design document or make aprototype to obtain protection.

>Ensure your rights are acknowledged andprotected in any merchandising agreement.

>Look out for copies and take action if youfind any.

Patents

>Keep ideas confidential until filing a patentapplication.

>Mark everything involved as confidential.

>Before filing only make any disclosures tothose under an obligation of confidence.

>If you commission work that includes aninvention, try to get all patent rightsoutright.

>Be vigilant.

Unfair competition/passing off

>Watch out for anyone who suggests there isa connection with you where none exists.Take action quickly.

>Laws vary widely from country to country.

>Preserve any evidence of confusion.

Domain names

>Establish a centralised policy for clearing andtracking your domain names(s).

Trade secrets/confidentiality

>Treat it with great care and on a need toknow basis.

>Take action quickly against any leaks.

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Being the firstto market with a new

brand establishes areputation for being the

original, with greatermarket knowledge, and

potentially greatereconomies of scale.



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Some brand management scenarios

Developing a new brand

New brand launches are risky, involved andlengthy commercial propositions. Dot comcompanies spent millions in the late 90sbuilding awareness but failing to build brands.A brand is not built overnight but by continueduse of a product or service over time.Consistent experience of the benefits buildsrelevance, preference, confidence and trust inthe minds of users, and builds the brand.

The starting point is the recognition that forexisting companies, products and services abrand already exists, although it may not havebeen consciously identified or managed.People, including users, will have a perception;those perceptions, however, may notnecessarily be positive and may not evoke anystrong beliefs at all. They may have no opinionof the value delivered over competitors. Suchperceptions form the brand although, in this

scenario, a particularly weak one.

Building a brand from scratch is not the easyoption. It requires a proposition that delivers agenuine functional advantage over competitors.The delivery of that proposition must be

consistent, reinforced where possible by aguarantee. The whole organisation needs to beculturally aligned to deliver that propositionwith passion. Users have to experience thefunctional advantage to the extent that theydepend on it, confident that it really deliverssuperior performance every time.

It involves significant investment, in creatingthe superior functional performance, buildingthe team and culture to deliver it,communicating it and supporting it. With thesignificant investment comes commercial risk

although a deep understanding of users, builtfrom marketing research studies undertakenprior to launch, reduces the chances of failure.

Being the first to market with a new brand,however, establishes perceptions specific toyour brand, a reputation for being the original,with greater market knowledge, and potentiallygreater economies of scale. Customers becomeloyal and ask for a brand which has come todefine the product field (eg, Amazon.com for

buying books on-line). Brands that are pioneershave the opportunity to gain greaterunderstanding of the technology by moving upthe learning curve faster than competitors.[de Chernatony, L. and McDonald, M., 1998]

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Failure rate for new

brands is much higherthan for new products

using an existing brandname.



22

Case study: Amazon

Failure rate for new brands is much higher

than for new products using an existing brandname. This is due to the added costs ofgaining consumer awareness and trial, andtherefore the additional revenue necessary toachieve acceptable profits. According toDavidson [1997] new brands should belaunched only where some or all of theseconditions apply:

>No existing company masterbrand orindividual brands can be stretched farenough to capitalise on the new opportunity

>The new brand is capable of achievingsuperior customer value, relevantdistinctiveness, low-cost operation,marketing and sales support, acceptableeconomics

>The opportunity can only be exploited fullywith a new brand

>The proposition and economics of a newbrand have been thoroughly pre-tested.

Entering new geographic markets

Read more about this topic in eguide 2: Typesof brand Global brands

Maintaining/re-building brandrelevance

Being clear about what a brand does and,equally importantly, does not stand for,managers can sustain their brandscompetitive advantage through the way itsactivities fit and reinforce each other.

[de Chernatony, L. and McDonald, M., 1998]The natural state for brands, if left alone, isone of decline. As competitors deliver betterperformance, or the same performance for lesscost, consumers needs change, culturesevolve and existing users grow older, brandscan quickly lose their relevance.

The first stage in maintaining and revitalisingbrand relevance is to investigate what

consumers think and feel about the brand. It isimportant to consider the relationship thebrand has with consumers and whether this isstill relevant. Changes in consumers lifestyles,pressures and needs must be understood so

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Relevance can be re-established by adjusting

delivery of the productor service, the

distribution channelsused, pricing orcommunication.



23

that the solutions delivered by the brandremain relevant and effective. It is alsonecessary to understand the gap between the

performance of current solutions on themarket and consumers ideal, as any gap risksbeing filled first by a competitor.

Solutions to maintaining and revitalising brandrelevance will depend on the nature of theproblem. If any changes are required to brandperformance, personality or communication,marketers need to consider how these wouldaffect what the brand has always stood for

its core values.Where brand performance is weakened, or agap exists between current performance andconsumers ideal, performance-relatedinnovation is likely to be the primary driver formaintaining brand relevance. If a brand fails toperform because it has been leapfrogged by acompetitor, that brand will be damaged andmust re-assert its leadership position if it is tocontinue to thrive.

Changing the brands performance may notalways be the right answer. If a brand is losingits relevance, can the brand be re-positionedto meet different or new needs? Relevance canbe re-established by adjusting any of a range

of elements in the marketing mix, includingdelivery of the product or service, thedistribution channels used, pricing or

communication. Budweiser added anidiosyncratic element to its brand personalitythrough its Whassa? advertising campaign,while Stella Artois succeeded by adopting verydifferent positioning in the UK market(reassuringly expensive) compared to itsnative Belgian market.

Case study: Lucozade

There needs to be mechanism in placewhereby any activity that affects the brand iscarefully considered against the statement ofcore values to ensure that none of the corevalues would be adversely affected. This typeof system emphasises a long-term view of thebrand and the brand equity gained over timeas opposed to short term measures. A furtheradvantage of having a statement of brandvalues is that it enables managers to checktheir interpretation of the brand against the

agreed view. [de Chernatony, L. andmcDonald, M., 1998]

Finally, all changes must be carefully co-ordinated to ensure that each element of themarketing mix supports the new proposition.

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The task of revitalisingold brands is less

difficult when the corevalues of the brand have

been protected andconsistently presented

to consumers.



24

This proposition needs to be communicated toall stakeholders in the brand. [de Chernatony,L., 1998]

The task of revitalising old brands is lessdifficult when the core values of the brandhave been protected and consistentlypresented to consumers. It can be lessexpensive and less risky to revitalise anestablished brand, when it is possible, than todevelop and launch a new one.

What is clear about brands with a long historyis that they have been subtly adjusted to keepthem relevant to changing market conditions.

Stretching the brand into new productareas

Brand extensions can be one of the bestsources of profitable growth for a brand. Theyalso have the potential to rejuvenate thebrands imagery. Too many extensions,however, may eat up money and resources

without delivering any real difference inperformance over existing products, posing therisk of damaging rather than enhancing thecore brand. The primary motivation behindbrand stretch should always be to deliver

profitable business growth whilst maintaining,and preferably increasing, brand equity. This isdone through attracting new users, creating

new usage occasions, superior performanceand premium pricing. [Taylor, D., 2002]

When evaluating brand stretch, it is importantto consider two dimensions:

>Functional stretch: this dimension concernsthe delivery of different benefits that requiredifferent product features and functionality.

>Emotional stretch: this dimension relates to

the emotional associations and personality ofa market or segment.

Brands that are based on functional value maybe more difficult to stretch. In contrast, brandsthat are rich in emotional values are lessassociated with specific functional benefits andso are easier to stretch across many productareas. [Taylor, D., 2002]

Case study: Wedgwood

A useful tool for mapping out the extensionareas is the brand circle [Davidson, 1997] (seefigure 5.7).

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25

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Figure 5.7: Example of a brand circle

Source: Davidson (1997), Even More Offensive Marketing

NO-GO AREASInvolvement would seriouslydamage and compromiseclarity of brand proposition

EXTENSION AREASAreas to which brand franchisecan be widened without damage

OUTER CORE

Optional attributes

INNER CORECritical elements in brand identity

Motherswith

children

Black-

currant

Concentrateddrink

Glassbottles

Noartificialflavouring

NO-GO AREAS

EXTENSIONAREAS

OUTERCORE

INNERCORE

Nonfoods

Mainstreamsoft drink

Medical

positioning

Lowprice

Averagetaste

Maleposition-

ing

Carbonated

Readyto drink

Outof

home

Flavours

Enhancedhealth

Plasticbottles

Sugarfree

> Great taste> Premium priced> Health benefits

Ribena UK sales increasedby 1000% in 1980-95



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When existing strongbrands are used to

foster new brands, themaster brand will addwarmth and vitality to

the sub brand but it willbe unwittingly drained

of heat itself.



26

Extension can be beneficial to a brand,however it can also be dangerous. Bullmorecompares brand extension to the second law

of thermodynamics, which states that whentwo objects touch, and their temperatures aredifferent, heat will flow from the warmer to thecooler until their temperatures are equalised.When existing strong brands are used to fosternew brands, the master brand will add warmthand vitality to the sub-brand but it will beunwittingly drained of heat itself. [Bullmore,1997]

Co-brandingA brand can also be leveraged by enteringanother product class or market, not by abrand extension but by band partnerships.Brand owners in both service and productfields are increasingly realising the significantadvantages to be derived from co-branding.It can:

>Benefit established brands whetherpurchasing IBM computers with Intel Insideor clothes with Lycra ingredient, consumers

have demonstrated a strong preference forco-branded offers. Co-branding provides anopportunity to create a new income stream,boost flagging consumer interest andincrease financial returns.

>Boost new brands for new brands analliance with a famous partner may bringimmediate credibility. Co-branding hasfuelled the growth of some of the mostpowerful new brands of recent times, suchas Intel, NutraSweet and Cisco.

>Assist brand development a co-brandedrange can be developed using thedistribution channel of one of the brands.

Co-branding is not without risks however. Aswith traditional brands, extensions to newsectors may stretch brand equity too far. Acareful match of both brands values, a similar

focus on long-term brand development, and acareful choice of target market, however,should ensure the success of such union.

Co-branding

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The trouble comes whenthe answer to the

thorny question of whoactually runs the

[franchise] business isnot clear.

The Chartered Institute of Marketing 2003 27

Franchising

Turning a brand into a franchise has a number

of key attractions. It can allow the brand tobecome national (or international) in itscoverage quickly and at minimal cost.However, some franchises have fallen down,simply because the franchiser and thefranchisee could not agree on how a businessshould be run, or insufficient attention isdevoted to the consistency and quality of thecustomer experience. The trouble comes whenthe answer to the thorny question of who

actually runs the business is not clear. While afranchise company believes it has a winningformula, the franchisees will want to do thingstheir own way, as they claim to know the localmarket better. [Crainer, 1995]

Benetton is an interesting example. Its shopsare franchises. The company advises on shopdecor, location, advertising and productpurchases but it does not receive royalties onsales or give exclusive rights for a particular

area. Luciano Benetton describes the processas follows:

A Benetton shop owner agrees to sellBenetton products, we agree to take care ofthe image and promotion of the Benetton

trademarks and guarantee speed andtimeliness in the supply of our merchandise.[Crainer, 1995]

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Checklist

>The promise that the brand represents

should be based in reality.

>What are the core values of your brand?

>Are they conveyed in every consumer-brandencounter through employees,communication, and direct experience?

>Are you guilty of making empty promises?

>Do you measure your brand equity

regularly?

>Brand differentiation should be more thanskin-deep.

>How is your brand different to competitors?

>Are those differentiating aspects relevant,meaningful and valued by the variousstakeholders?

>Can a coherent value system be inferredfrom everything your brand does?

>Get the right balance between consistencyand change.

>Do you keep the brand fresh thoughupdating it as the market changes?

>Are your brand extensions consistent withcore brand values?

>What are the idiosyncratic elements of yourbrand?

>The active brand, not the passive brand, willsucceed.

>Is your brand a leader or a follower in themarket?

>How high up is innovation on your brandsagenda?

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CASE STUDIES1. Wedgwood: stretching the brand

2. Barrs Irn Bru: one hundred years young

3. Lucozade: in sickness and in health

4. Remington vs Phillips: a close shave

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1. Wedgwood: stretching the brand

The Wedgwood brand is one of the oldest and

most prestigious found in the world today. Thequintessentially English brand was founded in1759 by Josiah Wedgwood, renowned as the

Father of English Potters, and has a long andproud history of delivering fine pottery toaffluent, upmarket customers; both to be usedas purchased and to be handed down asfamily heirlooms.

By applying the emotional associations of thebrand to a variety of new products, Wedgwood

have diversified and expanded into newcategories over the past two decades. In 1986the company merged with Irish crystalmanufacturers Waterford and the two havesince pursued product developments outside oftheir core ceramics and crystal ranges as theysought to expand into the luxury goods marketas a whole.

Whilst Waterford have developed ranges of

writing instruments, table linen and lamps, theWedgwood brand has grown to encompassproducts such as jewellery, leather goods andeven gourmet foods. The brand has expandedinto new territories and taken market sharefrom its competitors, particularly in Japan

where the Wedgwood name has come tosymbolise gifts of good taste and also in theUK where long standing relationships with

designers such as Jasper Conran have giventhe brand an association with high fashion.

As Wedgwood diversified, however, soconsumers perceptions of the brand altered to the extent that research undertaken in 1997showed that whilst the brand name held agood reputation and suggested quality toconsumers, they no longer associated it withits core product range of china tableware. Thebrand was achieving double digit growth andsales had risen to a record high of 417millionbut the research was still disconcerting forWedgwood. Determined not to lose brandfocus, they launched a major new advertisingcampaign to bring attention back to thepremium china range and to market the brandas more contemporary and younger than everbefore. As a result Wedgwood have been ableto continue their diversification and growth inthe luxury gifts market whilst maintaining their

core values of tradition and association withfine pottery which provide the brand with itsintegrity.

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Wedgwoods most recent developments haveincluded sponsoring the London Fashion Weekand decentralising operations so that more

individual attention can be paid to eachterritory. By concentrating on their strengths inindividual markets, eg gifts in Japan, fashion inthe UK and tradition in the US, Wedgwood nowaim to break the brand into even moremarkets such as home furnishings andtoiletries as brand managers seek to carefullyexpand the portfolio further.

Recent problems such as the slowing of theglobal economy and the impact of September11th have hurt Wedgwood as a luxuryproducer, yet sales in Asia and market share inthe US have both shown dramatic growth andthe company is now looking to double salesacross the brand over the next five years.

2. Barrs Irn-Bru: one hundredyears young

[The Leith Agency for Barr Soft Drinks, inBritish Brands, Issue 14, Summer 2001]

2001 marks the hundredth birthday of Irn-Bru,Scotlands other national drink. More thanthis, the year sees standard Irn-Bru in poleposition as the biggest selling grocery brand inScotland ahead of such international grocerygiants as Walkers Crisps, Persil, and Nescaf.There are very few countries in the world inwhich the leading cola is outsold by another

soft drink brand, but Scotland is one of them.

Clearly the distinctive flavour of Irn-Bruappeals to the Scottish palate, but the scale ofthe brands success is out of all proportion tothe levels of sales a non-mainstream soft drinkflavour can normally expect. So how does Irn-Bru manage to punch so far above its weight?

Firstly the product itself is unique. There isliterally nothing else like Irn-Bru. Nothing elsetastes like it, or even looks like it. The reciperemains a closely guarded secret. For Scots ofall ages, it is a reminder of their childhood; forthose abroad, it is the taste of home.

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But it is easy for brands with such a strongheritage to lose contemporary relevance.Latent brand affinity isnt always transferred

into sales. The brand ends up very much lovedbut not very often purchased. Shrewdmarketing has helped Irn-Bru to avoid thisfate.

By the middle of the nineties, Barrs wished togrow the brand in England. Research showedthat the Made in Scotland from Girderscampaign was extremely successful inScotland, but this success didnt transfer to theEnglish market. We had to recreate theadvertising so that the English consumer, whohad not grown up with the brand for the past90 years, could also relate to it.

The key was to adopt the right personality forIrn-Bru. The Barrs brand team began visitingschools to find out what teenagers weretalking about, and in particular what reallymade them laugh. This had advantages overtraditional research methods. Whereas in a

research group teenagers can easily turn surlyand uncommunicative, in school they areexpected to contribute their own ideas andopinions. Consequently, exploring strategic andcreative marketing ideas in the classroom

produced a notably more dynamic set ofresponses.

This kind of initiative helped to get under theskin of Irn-Bru. As a result a uniquelycompelling personality for the brand has beendeveloped over time.

Since Irn-Bru itself tastes like nothing else inthe world, the marketing of the brand had todo justice to it. But in talking to its biggestfans, we realised that no two kids describedIrn-Bru in the same way. The marketing of thebrand would have to enhance, not deny this

indescribable character. The best descriptionwe found was likeable maverick a self-confident, unconventional and independentcharacter who wouldnt think or behave inquite the same way as other people. As acharacter-type this description of the brandhas a great deal in common with the way ourteenage audience likes to be perceived itself.And maverick is also a very apt description ofwhat we sought the marketing to achieve.

Competing against some brands with muchbigger budgets, Irn-Bru has to shout to beheard. And the best way to do that is toconstantly surprise people.

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These insights have been used to inspire thecreativity of Irn-Brus marketing activity at alllevels, from website design to carefully tailored

sponsorships, to above-the-line advertising.The maverick tone of voice has proven flexibleenough to produce award-winning advertisingon radio, posters and TV. On TV, from the SeeWhat Irn-Bru Can Do For You campaign to thecurrent award-winning work, Irn-Brusadvertising has been consistently amongst themost popular and talked about for its teenagetarget audience.

Because Irn-Brus marketing is based ongenuine consumer insight, not nostalgia, itworks just as well south of the border too.Scots have always loved Irn-Bru now thegap is closing as English teenagers increasinglyadopt a brand that speaks to them too. Irn-Bru sales in England now account for almost aquarter of total volume. And Irn-Brus brandimage has improved dramatically in Englandwherever the campaign has been seen.

So long as marketing continues to keep thebrand young, there is every reason to supposethat Irn-Bru can enjoy another hundred yearsof healthy growth.

3. Lucozade: in sickness and inhealth

[Ann-Marie Salmon, Director, ConsumerHealthcare Communication, SmithklineBeecham, in British Brands, Issue 4, Summer1997]

It is not without irony that a 50 year old brandaimed at aiding recovery was itself not ingood health at the end of the 1970s. Lowerlevels of sickness, less frequent flu epidemicsand price increases all contributed to a declinein consumer consumption of Lucozade and

between 1974 and 1978 alone, sales hadfallen by 30%. Drastic steps needed to betaken or half a century of brand heritagewould be lost with little chance of recovery.

Lucozade was first developed in 1927 by aNewcastle chemist for his son recovering from

jaundice. It was bought by Beecham in 1938and launched in its classic yellow cellophanewrapped bottle with the strapline Lucozadeaids recovery.

The glucose in Lucozade is in a form that canbe easily assimilated into the body so that inillness, when there is appetite loss or food isdifficult to keep down, a drink of Lucozade can

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help provide the energy the body needs torecuperate. The brand was consistentlypromoted on this basis through the 50s and

60s, during which time it became Beechamsbiggest selling brand. However during the 70s,the brand started its steady decline.

To address this problem, new advertising wasdeveloped aimed at extending usage bypositioning it as an in-health pick-me-up forhousewives. This campaign increased sales by11% and although the prior decline wasarrested, growth was not maintained for longand by the end of 1979 sales had levelled out.

This campaign was only part of the companyseffort to get in-health usage, however. In1980, a new 250ml wide-mouth bottle wasintroduced in the one-shot market whichcarried the new brand positioning Lucozadereplaces lost energy. But whatever short termbenefits accrued from the advertising andpackaging initiatives, it was clear from a usageand attitude study conducted in 1982 that the

underlying character of the brand had notchanged dramatically from its historical norms.Housewives and children were still thepredominant users and illness and recoverythe main reasons for consumption.

As a result it was decided that the best growthopportunity for the brand was in thecarbonated soft drinks (CSD) market, the

rationale being the brands excellent in-storepositioning and distribution strength in bothgrocery and corner-shop markets and thevolume potential in the CSD market. However,these positive aspects were balanced by anumber of other factors, not least was thetotal domination of this market by Coke andPepsi. In addition, Lucozade would beexpensive and the brand had a lot of negativebaggage with the younger target audience assomething their mums had given them whenthey were ill.

It was felt that these problems could beaddressed via advertising which would do twothings - justify a price premium via a uniqueselling proposition and in execution useimagery which the new young targetaudiences would find motivating. The uniqueselling proposition to justify the price premiumwas based on the brands particular benefit

claim - Lucozade is not only delicious andrefreshing, but can quickly replace lost energy.The creative solution was to be found in sportwhich simultaneously addressed both thetarget audience and the product claim.

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At that time, Daley Thompson was signed asthe spokesman for Lucozade and in July 1983he featured in a Lucozade ad for the first time.

Results were mixed and extensive analysis ofthe advertising showed that consumers likedDaley but didnt connect him totally with thebrand.

From this assessment came the Traffic LightsTV commercial which sought to portray theenergy of Lucozade rather than explain it.The combination of Daley Thompson in slowmotion with the heavy metal Iron Maidenmusic chosen for its wind down and slow build

to thunderous crescendo embodied the beforeand after promise of dynamic energy, at thesame time branding the advertisingunmistakably.

In the first year of the new advertising, withno significant gains in distribution or changesin pricing, volume sales increased by 40% andwere accompanied by sales increase in theoriginal bottle of 4%. Quantitative and

qualitative research showed that the energymessage was getting through to both existingusers and the new, younger target audience.

Since then, the brand has gone from strengthto strength with the introduction of newflavour variants, the 1988 launch of the

Lucozade Sport isotonic drink and the 1995launch of the NRG teen drink. Many of theseconcepts have been successfully transferred tomarkets outside the UK in Ireland, Asia andAustralasia. All of these introductions haveincluded innovative new packaging elements,developed new loyal consumer groups and yethave remained true to the core character ofthe brand as an energy drink. Even moregraphically, in the ten years between 1985 and1995, global sales of the brand increased from12 million to 125 million, a true illustrationof a brand fulfilling a promise made 70 yearsago...

Lucozade aids recovery

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4. Remington vs Phillips: a closeshave

Both the Remington and Phillips brands havelong and proud histories in the electronicgrooming market. In 1937 Remingtonproduced the worlds first electric razor, a trueinnovation which still forms the core of theirbusiness today. Two years later, Phillipsentered the market with their own shaver andthey have since gone on to produce over 400million electric razors under the Philishavebrand, including the revolutionary triangularthree-headed electric shaver in 1966.

The two companies pitched their designsagainst one another for some 55 years asmarket leaders in electronic grooming productswith Phillips claiming superiority for theirthree-headed Philishave product. Apparentlyaccepting the finer design of the product to thetraditional twin headed shavers they produced;Remington launched a similar triangular three-headed electric razor in 1995. Phillips

immediately sued, claiming that the productinfringed on their intellectual property andtrademark of the design. A Phillips pressreleases stated: Since its first introductionsome thirty years ago we have invested

continuously in the quality and the design ofone of the icons of Phillips, the Philishave.Consumers recognise the form of our three

headed Philishave as Philips and we would liketo avoid confusion in the market.

Under the 1994 Trademarks act, which allowedcompanies to register tunes colours and threedimensional shapes, Phillips had registered thedesign of the product but Remingtonchallenged the action on the basis thatregistering a design such as the Philishavegave Phillips a monopoly and preventedcompetitors from producing products based on

similar technology. The case went through thecourts for some seven years before theEuropean Court of Justice ruled against Philipslast June. The verdict was that Philips ownadvertising had emphasised the superiority ofthe design over that of their competitors andin doing so they had established that thedesign was fundamental to the way theproduct works, undermining their right totrademark it as a brand feature.

The ruling was a landmark as it was the firsttime the principle of design trademarks hadbeen tested and emphasises to what extent aproduct design can be protected. The courts

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judged that, whilst a particular design can beprotected if it is widely associated with thebrand, the shape of a Coca-Cola bottle for

example, this is not the case if that design isfundamental to its operation. Intellectualproperty is protected if a rival is attempting to

pass off a product and confuse consumersbut as Remington were employing the sametechnology but clearly marketing it under theirown brand, and as Philips themselves haddeclared the design technologically rather thanaesthetically superior, the design was notprotected.

Philips have appealed against the verdict andthe interpretation could yet be heard indomestic courts in individual territories.Remington, however, have claiming the

judgement as a victory that will clear the wayfor them to market their triple headed electricshavers throughout the UK and Europe.

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Documents

Managing and Developing Brands