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To Brand or Not to Brand?
Concepts and Rules for Building the Killer BrandChapter 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 BrandsA look at Master Brands
Baking Soda Baking Soda
Adhesive BandagesAdhesive Bandages
RumRum
GelatinGelatin
SoupSoup
Cream CheeseCream Cheese
CrayonsCrayons
Petroleum Jelly Petroleum Jelly
Arm & Hammer Arm & Hammer
Band-AidBand-Aid
BacardiBacardi
Jell-OJell-O
Campbell’sCampbell’s
PhiladelphiaPhiladelphia
CrayolaCrayola
Vaseline 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 andA set of assets andliabilities linked to a brand’s nameliabilities linked to a brand’s nameand symbol that add or subtractand symbol that add or subtract
from the value provided by afrom the value provided by aproduct or service to a firm and/ orproduct or service to a firm and/ or
that firm’s customers.that firm’s customers.
Aaker, David A. (1991), Aaker, David A. (1991), Managing Brand Equity: Capitalizing on Managing Brand Equity: Capitalizing on the Value of a Brand Name, the Value of a Brand Name, The Free Press, New YorkThe Free Press, New York
BrandBrandEquityEquity
Awareness
Competit
ive
Advantage
Associations
Perceiv
ed
Quality
Loyalty
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 71%
• Mayonnaise 65%
• Toothpaste 61%
• Coffee 58%
• Athletic shoes 27%
• Canned veggies 25%
• Garbage bags 23%
Branding Decisions
• Brand or not to brand?
• Brand sponsor decision
• Brand name decision
• Brand strategy decision
• Brand repositioning decision
Branding StrategiesBranding Strategies
BrandBrand No BrandNo Brand
Manufacturer’s Brand
Manufacturer’s Brand Private BrandPrivate Brand
IndividualBrand
IndividualBrand
Family Brand
Family Brand
Combi-nation
Combi-nation
IndividualBrand
IndividualBrand
Family Brand
Family Brand
Combi-nation
Combi-nation
Brand Strategy Brand Strategy DecisionsDecisions
• 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