Brand Management. Becq cécile 3S3

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1 Becq cécile 3S3 Brand Management 1/ What is a brand? Why do brands matter? Can anything be branded? What kinds of branding challenges and opportunities exist? What is the brand equity concept? Describe the strategic brand management process. What is a brand? In the Old English language, the noun brond is first attested from the epic poem Beowulf meaning "destruction by fire." Throughout the ages, brand had been used in figurative and transferred senses to mean "a person delivered from imminent danger," "the torches of Cupid and the Furies," and "Jove's or God's or Phoebus' brand." Brand had also been figuratively applied since the late 16th century to criminalize people (as in disgrace, a stigma, or mark of infamy) and in the sense of firebrand since the 17th century. The idea of marking things, people, or animals by burning identifying marks onto them is clearly an ancient one. While described as a physical impression of ownership on livestock by way of hotiron branding since the mid-17th century, modern senses of brand as used in business began to arise in the early 19th century when the term was figuratively extended to trademarks and logos. During this time, brands were imprinted on casks of wine, timber, and other goods except textile fabrics. During the 19th century in primarily the United States, hot irons used for marking livestock and cauterizing wounds were called brands, and later cattle and other livestock were also referred to as brands. A brand blotter was a thief who stole, and removed marks of ownership from, cattle. A brand permits to differentiate the goods of one producer from those of another. A brand is a name, term, sign, symbol, or design or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition. When a marketer creates a new name, logo, or symbol, he creates a new brand. A brand is very important for a company, because with this brand the costumer will buy the products or services. It should be recognized that many practicing managers, however, refer to a brand as more than that (defining a brand in terms of having actually created a certain amount of awareness, reputation, prominence, and so on in the marketplace. In Some sense, a distinction can thus be made between the American Marketing Association definition of a small b brand and the industry practice of a big b brand ) that is a brand versus a Brand. It is important to

2 recognize this distinction because disagreements about branding principles or guidelines often revolve around the definition of what is meant by a brand. The key to create a brand is to be able to choose a name, logo, symbol, package design, or other attribute that identifies a product and distinguishes it from others. There are a lot of elements which differentiates a brand. A brand can be based on people, animal, place, or other things. You use the brand to communicate about your product and it s for that the costumer buy your product and not the other with the same characteristics. Why do brands matter? The brand is very important; it is the company s base. Firstly, a brand is for the consumer (all type of customers; individuals, organizations ) something very important. For a consumer a brand permits of: Identification of source of product; Assignment of responsibility to product maker, Risk reducer, (functional, physical, financial, social, psychological, time risk ) Search cost reducer, Promise, bond, or pact with maker of product, Symbolic device, Signal of quality. The consumer recognizes a brand and has some knowledge about it, and the quality, the characteristics depended of the image brand. The consumer identifies the advantage and benefit about the brand to buy or not the product. Buying a brand in the society is very important a brand is synonym of social class, it is very important to choose the good brand. Now, is very hard to secure the loyalty a consumer and the image brand is more and more essential. Secondly, brands also provide a number of valuable functions to firms. The brand is for the manufactures very indispensable and it means: Identification to simplify handling or tracing, Legally protecting unique features, Quality level to satisfied customers Endowing products with unique associations Source of competitive advantage Source of financial returns. Can anything be branded? To brand a product it is necessary to teach consumers who the product is, as well as the product does and why consumers should care. It is necessary to give consumers a label for the product and to provide meaning for the brand to consumers. For me, everything can have a brand. Physical goods are traditionally associated with brands and include many of the best-know and highly regarded consumer products It is, valid for the foods (coca cola, Kellogg s) pharmaceutical industry (Nicorette,

3 Pepcit ), High Tech products( Kodak,, Sony), the clothes (Zara, MaxMara), car (Renault; BMW) It is too applicable for the services, the telecommunication Industry (France Telecom, SFR), company airlines (Air France), brokerage (UPS, La Poste), bank (LCI, HSBC) But, don t forget the retailers and distributors (Carrefour, Tesco), online products and services (Google, Yahoo), people and organisation (Cindy Crawford, Marilyn Monroe, UNICEF, and WWF), sports, arts and entertainment (OM, Manchester United, PSG, and Batman), geographic Locations (ATC: Australia Tourist Commission), and ideas and causes (AIDS ribbons) What kinds of branding challenges and opportunities exist? The reality is that although brands may be as important as ever to consumers, brand management may be more difficult than ever. The consumer need for simplification and for risk reduction. Challenges to Brand Builders: Savvy customers More complex brand families and portfolios Maturing markets More sophisticated and increasing competition Difficulty in differentiating Decreasing brand loyalty in many categories Growth of private labels Increasing trade power Fragmenting media coverage Eroding traditional media effectiveness Emerging new communication expenditures Decreasing promotional expenditures Increasing cost of product introduction and support Short-term performance orientation Increasing job turnover It becomes harder and harder to implant in people s minds that things are desirable. The emotional is a fact very important now. Another important change in the branding environment is the proliferation of new brands and products, in part spurred by the rise in line and brand extensions. Don t forget the erosion or fragmentation of traditional advertising media and the emergence of interactive and non traditional media, promotion, and other communications alternatives. There is too the increased competition is due to the brand extensions, deregulation, globalization and low-priced competitors. And in the same time the cost of introducing a new product or supporting an existing product has increased rapidly, making it difficult to match the investment and level of support that brands were able to receive in previous years. And to conclude the importance of accountability has increased. And now, the marketing management may find themselves in the dilemma of having to make decisions with short-term benefits but long-term costs.

4 What is the brand equity concept? One of the most popular and potentially important marketing concepts to arise in the 1980 s was the concept of brand equity. It has raised the important of the brand in marketing strategy. Branding is all about creating differences. Most marketing observes also agree with the following basic principles of branding and brand equity: Differences in outcomes arise from the added value endowed to a product as a result of past marketing activity for the brand. This value can be created for a brand in many different ways. Brand equity provides a common denominator for interpreting marketing strategies and assessing the value of a brand. There are many different ways in which the value of a brand can be manifested or exploited to benefit the firm. Fundamentally, the brand equity concept stresses the importance of the role of the brand in marketing strategies. The concept of brand equity builds on many previously identified principles about brand management. By virtue of the fact it adapts current theorizing and research advances to address the new challenges in brand management created by a changing marketing environment, however, the concept of brand equity can provide potentially useful new insights. Brand equity is the willingness for someone to continue to purchase your brand or not. Thus, the measure of brand equity is strongly related to loyalty and measures segments on a continuum from entrenched users of the brand to convertible users. Brands with equity provide an ownable, trustworthy, relevant, distinctive promise to consumers. Describe the strategic brand management process. Strategic brand management involves the design and implementation of marketing programs and activities to build, measure, and manage brand equity. In this text, the strategic brand management process is defined as involving four main steps: Identify and establishing brand positioning and values Planning and implementing brand marketing programs Measuring and interpreting brand performance Growing and sustaining brand equity

5 Strategic Brand Management Process STEPS Identify and Establish Brand Positioning and Values KEY CONCEPTS Mental maps Competitive frame of reference Points-of-parity and points-of-difference Core brand values Brand mantra Plan and Implement Brand Marketing Programs Measure and Interpret Brand Performance Mixing and matching of brand elements Integrating brand marketing activities Leveraging of secondary associations Brand Value Chain Brand audits Brand tracking Brand equity management system Grow and Sustain Brand Equity Brand-product matrix Brand portfolios and hierarchies Brand expansion strategies Brand reinforcement and revitalization 2/ Build a CBBE model using the Nike case study. Be prepared to match your work with the group presentation. Building a strong brand: 1. BRAND IDENTITY Who are you? Selling sports products, based on footwear market Leader all over the world (140 countries), known by everyone and associated to sport One of the best advertisers (emotion) 2. BRAND MEANING What are you? Performance Characteristics : special material (studied to do sport) Reliable & durable brand (confidence) Revolutionary designs (air-cushioned Nike air ), stylised brand (swoosh), variety and product line expansion, different sports (basketball, tennis, Higher but steadfast prices, totally accepted by the clients

6 First position, as compared to other brands (Reebok, Adidas) Service : NikeiD personnalisation of the product/diversification Imagery: User profiles Very popular brand (thanks to the pyramid of influence, beginning to reach popular athletes) Dynamic (young) people, who like to move around (sportive people but also ordinary people who like the sportive image) Purchase & usage situations Extreme sport/simple footing/walk around/do shopping/pass the WE in casual clothes to be at ease Personality & values Nike is an authentic brand History, heritage & experiences Niketown in Chicago (1992) 3. BRAND RESPONSES What about you? Judgments Brand quality EKINs employees : bring Nike closer to general public (good feed back to Nike offices, better customer satisfaction) Brand credibility Expertise : Sports Research and Development Lab in Exeter 10% of global revenues spent in demand creation every year Athletically employees (good communication) Brand consideration: High consideration (which is developed with M. Jordan etc ) Brand superiority: professional and technical brand Differentiation: Publicity (65 medals) Brand feelings: Just do It : Good ads: Nike won its first award at Cannes for one of these ads. Self-respect, Nike makes consumers feel better about themselves, consumers feel a sense of pride, accomplishment, or fulfilment; Social approval because Nike is famous and for the costumer it is developing to wear Nike. Security because it is a professional brand wears by a professional athlete. Emotional: with the celebrity endorsement. 4. BRAND RELATIONSHIPS What about you and me? Behavioural loyalty: it is high when a costumer buys one Nike shoes he will buy a other and maybe the Nike clothes. Attitudinal attachment :

7 Emotion, pushing the limits of an athlete performance (sport in American culture, special ad) Sense of community : social phenomenon : customers feel a kinship and affiliation with other people associated with Nike, it is like a community. Active engagement : web site, the people likes to surf on this website. Web association Everything available (stores, ad, products) CBBE Pyramid model Consumer brand resonance: Loyalty, engagement, community, attachment Consumer Judgement: quality, credibilty Consumer feelings: Emotional, security, social approval Brand performance: Revolutionary/reliable/ authentic Brand imagery: younger, sport, dynamic, Brand Salience: Leader in sport products and advertisement, famous