Brand Strategy Professor Tonya W. Bradford. Fall Term 2014 / Mod 1
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1 Brand Strategy Professor Tonya W. Bradford Fall Term 2014 / Mod 1 twbradford@nd.edu OFFICE: 380 Mendoza College of Business PHONE: (574) OFFICE HOURS: Tuesday from 2:30 to 4:30p & by appointment. CLASS SCHEDULE: Monday & nesday 10a to 11:50a Course Description, Purpose and Goals All types of entities have come to the realization that one of the most valuable assets they have is the brand associated with their offerings. However, business executives realize the creation and capture of value through branding is complex. This course will take an intensive, hands-on look at how brands are created, nurtured and extended. Our premise is that brands are an essential, often overlooked component of any company s success. We will explore the why s, what s and how s of brands. This is a course examines the art and science of branding through current theory and business practices to develop insights into the successful creation and stewardship of brands. Brand Strategy addresses important branding decisions faced by organizations. The course employs a mix of cases, readings, discussions, lectures, and a team project. The objectives of this course are to: 1. provide insight as to why brands matter within the context of the triple bottom line (profit, stakeholders and society); 2. develop a working knowledge of the concept of brand equity and how it is built; 3. develop familiarity with the important issues in planning and evaluating brand strategies (brand vision, brand positioning, brand elements, IMC plan, measurement, etc.); 4. provide the appropriate theories, models, and other tools to make better branding decisions; and 5. provide a forum to apply these principles. In the course, emphasis is placed on understanding principles at the customer level that will improve managerial decision-making with respect to brands. An explicit aim of the course is to make these concepts relevant for any type of organization (public or private, large or small, etc.). 1
2 Philosophy & Expectations My overall philosophy is that learning is a joint venture and a journey. To make the most of the journey, preparation is mandatory. The assignments will require students to grapple with the readings, actively engage in class discussions and assess the materials in light of specific questions. Given the interactive nature of this course, it is necessary that students commit to prepare in advance of class to ensure a rich learning environment. This course requires extensive outside class preparation. You will need to budget 2-4 hours of time for reading, reflection and analysis in preparation for each class. A schedule of readings, cases and topics by class date is provided in this document and supplemental preparation materials will be posted on Sakai. The course may be viewed in three parts: Brands, Brand Equity, and Brand Management. These early sessions provide a basic understanding of branding: what a brand is and what roles brands serve to firms, consumers and society. The sessions in this introductory module also provide exposure to the underlying conceptual frameworks for the course in which brand meanings as co-authored by marketers, consumers, and cultures create brand strength, which in turn provides brand value to shareholders in the form of competitive advantage, increased market share and profits, as well as reduced risks. We review brand audits as a mechanism for tracking and diagnosing brand performance, and brand planning as a strategic tool for brand equity cultivation and management. Building Brands. These discussions build knowledge of what is involved in building and assessing brand equity. Perhaps the most important task in designing a brand involves specifying the unique and resonant meanings the brand is to capture. These meanings are expressed in the form of a brand identity and brand positioning. The brand meaning platform provides the foundation for brand design by providing the theme around which the holistic brand experience is framed. Once a brand meaning platform is selected and brand design elements are aligned, the manager sets about the task of building and then assessing brand strength. Once a brand meaning platform is selected and brand design elements are aligned, the manager sets about the task of building and then assessing brand strength. Brand Strategy and Managing Brands over Time. We will discuss the concerns the challenges that confront brands as they attempt to 2
3 grow and stay relevant over time. Consumers, cultures, companies and competitors change: brands are living entities that must evolve continuously or be left to wither and die. We investigate revitalization strategies for maintaining brand relevance, and ponder different brand management systems for long-term stewardship of the brand. We will also explore how a company can successfully navigate crisis events that can befall a brand. In this module, we consider the design of brand portfolios and explore the growth of brand equity through leverage and extension. For each class meeting, one group will be assigned to facilitate the class discussion of the assigned case. This means the group will: 1. Introduce the case and the underlying brand issue presented 2. Develop and pose questions for class member discussion 3. Summarize the plan of action developed in class discussion 4. Compare and contrast that with the plan of action the group has developed prior to the class presentation 5. Summarize key lessons learned related to course concepts generally, and more specifically for the assigned case In addition, everyone will be expected to: a) Read the assigned text critically and note questions, comments and examples. b) Prepare for discussion of the assigned case. c) Be prepared to contribute something novel to the course discussion from current events. 3
4 Course Materials There are three types of materials for this course: the text, supplemental readings, and cases. The text is found in the book store and is: Johansson, Johny K. and Kurt A. Carlson, Contemporary Brand Management, Sage, Supplemental readings and articles various texts and Journals will be available via electronic reserve: Aaker, David A. and Erich Joachimsthaler (2000), Brand Leadership, New York, NY: Free Press. Aaker, David A. (1991), Managing Brand Equity: Capitalizing on the Value of a Brand Name, New York, NY: Free Press. Clifton, Rita et al. (2009), Brands and Branding, 2nd edition, New York, NY: The Economist, Bloomberg Press. Gerzema, John and Ed Lebar (2008), The Brand Bubble, San Francisco, CA: Jossey-Bass. Holt, Douglas B. (2004), How Brands Become Icons, Boston, MA: Harvard Business School Publishing. Keller, Strategic Brand Management, Prentice-Hall, 4 th Edition Moon, Youngme (2010), Different, New York, NY: Crown Press. Cases are in a Packet available for purchase in Faculty Support (Mendoza room 321). Please be mindful they only accept cash and checks. Sakai also provides links to discussion questions, and any other pertinent material will be made accessible there. Please check the site regularly for updates relevant to the course. Groups You will create teams of up to four members. Each team will be responsible for developing and presenting a brand audit. Each team member will receive the same grade on the project and is expected to contribute equally. In the rare case that a team member does not contribute equally, their individual grade for the project may be adjusted 4
5 accordingly. In addition to the content of your project, a peer evaluation will be completed. Peer evaluations will be made available online for completion prior to the final exam. Course Organization The group term-long brand management project is to conduct a brand audit for a brand in transition (e.g., struggling, emerging, merger, repositioning). Each team will work on a unique brand, with brands adopted on a "first come, first serve" basis. Once you have formed your groups, send me an e- mail with your brand, along with the transition it faces. I will confirm that the brand is acceptable and available. The brand audit project is comprised of three assignments. For each assignment, please observe the word limit and include it at the end of the text. Please note you may include as many Exhibits / Appendices as necessary to support your assertions, and are not included in the word count. Following are the assignments: Assignment One. (1000 word limit) Provide a snapshot of the current industry conditions in which your brand operates. It should include but not be limited to: o Industry: o Industry size and overall sales trends (ideally 3 years) o Market share trends for major competitors o New product or brand activity o Major trends affecting the category (economic, socialcultural, technological, regulatory, competitive) o Recent news of note (mergers, key shifts in direction if any) o Company: o The type of transition faced by the brand o SWOT Analysis o Mental Map for the brand in terms of the key brand associations this should include relevant primary data your team collects. Be sure to explain how key brand elements are being used to fortify these associations. Assignment Two. (1000 word limit) Describe and depict the brand hierarchy for the brand, including knowledge structures, opportunities, and relationships between the levels. Outline your depiction and assessment of the brand portfolio. This will include an analysis of the brand s architecture which is the organizing structure for the brand portfolio. Roles played by brands and sub-brands, relationships among brands as 5
6 well as their roles in different product-market contexts should be specified. Assignment Three. (2000 word limit) Profile the sources of brand equity and provide recommendations to continue to build and manage equity based on your assessment of their current marketing program. Document your expectations on how your recommendations will influence positioning. Include the best opportunities to positively impact brand equity. Your presentation should be a top-line summary of the key points documented in your report. Evaluation: All assignments are due at the beginning of class. Late assignments will not be accepted. Brand Audit (50 points) Assignment One and Two (20 points total) Assignment Three: Brand Audit (25 points) Team Presentation of Brand Audit (5 points) Quiz & Exams (40 points) Group Case Presentation & Facilitation ~ Quiz (10 points) Exam One ~ Individual (15 points) Exam Two ~ Individual (15 points) Class participation (10 Points) 6
7 Schedule: The following schedule is subject to change. Changes will be noted in class or via Sakai. Date Topic Readings Case Assignment Due 1 Mon Brands & Consumers Ch 1 Branding Yoga Teams 8/25 8/27 Brand Equity Ch 2 Plus Reserve: Schultz; Lindemann; Aaker (Brand Apple iphone Brand 2 Mon 9/1 9/3 3 Mon 9/8 9/10 4 Mon 9/15 9/17 Equity); Keller (Ch 9) Positioning Ch 3 Reserve -Roedder John et al (JMR) -Tybout Ch5 Eileen-Fischer Building Brands: 4Ps Ch 4 BabyCenter Building Brands: Communication Strategies Ch 5 Reserve: Holt (Ch 3) Harley-Davidson Assignment 1 Supporting brands: Guest Speaker, Lynn Holmgren, VP Global Customer Operations, Millicom International Cellular Building Brands: Brand Ch 6 Porsche: Cayenne Launch Extensions Optional: Moon Brand Portfolios Ch 8 Rosewood Hotels Reserve: Aaker (Brand Architecture) 5 Mon 9/22 New Applications Ch 9 (Product) Red (A) 9/24 6 Mon Strategic Brand Management: Guest Speaker, 9/29 Olga Starikova, Regional Marketing Supervisor, McDonalds Corporation Building A Brand! 10/1 7 Mon 10/6 Team Presentations 10/8 Finals Exam 1 (Take home: Individual) Global Brands Ch 7 Café Coffee Day Assignment 2 (group) Exam 2 (individual) & Assignment 3 (group) 7
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