Strategic Brand Management
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1 Strategic Brand Management Exeter MBA and MSc Day 3 Brand Management Planning Brand Strategy Consumer Perceptions BRAND IMAGE Marketing Communication Process Company Intentions BRAND IDENTITY How the brand is now perceived EXECUTION How strategists want the brand to be perceived Understand Image Market position Develop identity 1
2 Brand Management Consumer Perceptions BRAND IMAGE How the brand is now perceived Product Marketing Communication Process Company Intentions BRAND IDENTITY How strategists want the brand to be perceived Understand Image EXECUTION Develop identity Market position Brand Management Is the process of managing the brand via product and communication Follows strategy Is more concerned with execution Has the greatest overlap with marketing 2
3 Brand Management The Brand Consumer Perceptions Corporate Culture and values Products or Services Marketing programmes Brand Management The Brand Consumer Perceptions COVERED DAY 1 Corporate Culture and values COVERED DAY 2 Products or Services Day 3 Marketing programmes Day 3 3
4 Brand Management Visual identity Products and services Marketing programmes / process Advertising Public relations Retail marketing Sponsorship/promotions BRAND VISUAL IDENTITY PRODUCTS MARKETING PROGRAMMES Strong brands have understandable and compelling visual identities 4
5 5
6 6
7 Nike visual identity Products footwear, apparel and accessories Athletes and teams Niketown and retail Advertising and all communication Logos, taglines Sources of Visual Identity Product design direction Product range Packaging Slogans Icons Communication Retail environment Promotions Sponsorship Events 7
8 Beyond visual identity The Starbucks experience The taste The smell The sound The ambience The warmth The friendship Why Advertise? Brands with strong visual identities Nike BMW Marlboro IKEA Monopoly 8
9 Brands with weaker visual identities Reebok Nissan Hewlett Packard Boots Visual identity challenges A strong visual identity can build brand equity fast Whilst reducing dependence on advertising But it can limit diversification And be very expensive to maintain Plus mistakes can be costly 9
10 The Brand and product link Products or services are the tangible manifestation of a brand Great brands tend to be great product companies P&G has always been misunderstood as a marketing company. The fact is P&G s fortunes have been built on product innovation. John Smale Brand or Product Campaign Brand campaigns build brand awareness Accenture Product campaigns market specific product Current trends television for brand building, print media for product Hero products elevate brand status 10
11 Hero products Practical challenges. Brand Process Marketing Process Product Process Brand planning Brand strategy Overall corporate objectives Communication Advertising agencies Sponsorship PR R and D Advance products In-line products Prototypes 11
12 The challenge of process Brand, marketing and product have different processes and different stakeholders Strong brands co-ordinate ordinate these activities Across functions and geographical boundaries Process management will be covered in a later lecture The marketing plan different disciplines Advertising Public Relations Retail and in-store environment Internet Promotions Sponsorship Integration is the key 12
13 Advertising The traditional mainstay of brand building The most expensive item within a marketing programme Currently under threat from other marketing disciplines What is the role of the advertising agency? Traditional Advertising Television Radio Magazines Newspapers Outdoor Direct Mail Keller Chapter 6 13
14 Traditional Advertising Client briefs an agency Agency develops a creative campaign and media strategy Client approves Agency executes and develops support materials Advertising today Fragmentation of media audience Growth of non-traditional marketing techniques Explosion of new media (technology) Explosion of communication channels Decline of traditional TV viewing 14
15 Agency roles Strategic partner to create brand ideas Management of media brand identity Execute specific programmes Integrate with other agencies for consistent ideas Public Relations Much cheaper and can generate huge coverage Perceived brand value can be greater than advertising With creative ideas can break-through Does public relations generate brand equity? 15
16 Public Relations multi-faceted Internal PR company information Investor relations Corporate relations / affairs ethics, community work, charity Public relations consumer Product / brand information Creative ideas / events Product seeding The risk with PR is loss of focus Marketing channels CHANNEL Advertising P.R. Own retail In store Promotions Sponsorship Internet Cost High Varies Huge Varies Cheap Varies Varies Brand Control High Varies High Varies High Varies High Considerations Strong control but expensive Creative ideas linked to strategy Brand or retailer? Depend upon partner and merchandising Immediate sales impact but erosion of equity Choosing the right partners Needs to compliment overall strategy 16
17 Integrating Marketing to build brand equity Use sponsorship Linked to product Advertising In-store Creates participative shopping Cost versus other marketing activities? Jamie Oliver Delia Smith Integrating Marketing to launch a brand UK launch Create big brand feel Distribution difficulties Full-page print advertising Supported by PR campaign Linked to sales force 17
18 Building brands without mass media Evolving view on brand equity Six companies Nestle (Buitoni( Buitoni), the Body Shop, Cadburys, Haagen-Dazs Dazs,, Hugo Boss, Swatch Brand Strategy should drive business strategy Be clear about the brand s s identity E.Joachimsthaler & D.Aaker Building Brands Without Mass Media HBR Jan/Feb 1997 The role of the Internet within brand building Technology makes smaller brands scalable faster Makes the relationship with the consumer vastly more personal (community) Raises consumer expectations Needs to reflect core strategy Easy to underestimate costs in both content and time 18
19 Speed.the critical change? Consumer Perceptions BRAND IMAGE How the brand is now perceived Marketing Communication Process EXECUTION Company Intentions BRAND IDENTITY How strategists want the brand to be perceived Understand Image Market position Develop identity The Brand as a network? Consumer Image Brand Strategy Brand Network Market Position 19
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