brand building concepts
TRANSCRIPT
1
BUILDING STRONG BRANDSTHREE MODELS FOR DEVELOPING AND
IMPLEMENTING BRAND PLANS
Professor Kevin Lane Keller
Tuck School of Business
Dartmouth College
2
The Concept of Customer-Based Brand Equity
Customer-based brand equity
Differential effect
Customer brand knowledge
Customer response to brand marketing
3
Building Customer-Based Brand Equity
The initial choices for the brand elements
Brand name, logo, symbol, character, slogan….
Marketing and other activities and supporting marketing programs
Products, services, communications, channels ….
Other associations indirectly transferred to the brand by linking it to some other entities
Other companies, brands, places, people ….
4
Benefits of Customer-Based Brand Equity
Enjoy greater brand loyalty & be less vulnerable to competitive marketing actions
Command larger margins & have more inelastic responses to price increases and elastic responses to price decreases
Receive greater trade cooperation & support
Increase marketing communication effectiveness
Yield licensing opportunities
Support brand extensions
5
Customer-Based Brand Equityas a “Bridge”
Customer-based brand equity represents the “added value” endowed to a product as a result of past investments in the marketing of a brand.
Customer-based brand equity provides direction and focus for planning future marketing activities
6
Three Tools to Facilitate Brand Planning
Holistic marketing requires careful planning and implementation.
To help guide these efforts, three models of increasing scope are presented: 1) brand positioning model describes how to guide integrated
marketing to maximize competitive advantages;
2) brand resonance model describes how to create intense, activity loyalty relationships with customers; and
3) brand value chain model describes how to trace the value creation process to better understand the financial impact of marketing expenditures and investments.
http://www.sogiants.com/
7
1. Brand Positioning Model Kevin Lane Keller, Brian Sternthal, and Alice Tybout (2002),
“Three Questions You Need to Ask About Your Brand,” Harvard Business Review, September, 80 (9), 80-89.
8
Brand Positioning Brand positioning is about how we want target
customers to think about a brand with respect to competitors
A strong brand positioning helps guide organizational activities by clarifying the brand’s essence, what the brand helps the customer achieve, and how it is unique in doing so
Everyone in the organization should understand the brand positioning and use it as context for making decisions
Classic Brand Positioning Statement
To ___________________________________________________________________,
(Target Group/Need)
_______________is the brand of __________________________________________.
(Brand) Frame of Reference (Perceptual)
Competing Mainly With ___________________________________________________
Frame of Reference (Competitive)
that ___________________________________________________________________,
(Relevant Differentiating Benefit)
because ______________________________________________________________.
(Reason To Believe)
The Brand Character is: ___________________________________________________
10
Amazon.com Positioning
For the young at heart who value an infinite amount of choices, Amazon.com is the virtual cookie jar, competing mainly with all brick and mortar stores, that gives you’re the perfect combination of convenience, service, selection and price, because Amazon.com offers a truly global selection of products.
Brand Character: Simple, Friendly, Empowering
11
Problems with Classical Positioning Statement
Ignores possibility of multiple points-of-difference
Assumes only 1 key point-of-difference
Ignores need for points-of-parity
Doesn’t provide forward-looking growth platform
12
The Four Components of a Superior Competitive Positioning
Competitive frames of reference Nature of competition
Target market
Develop unique brand points-of-difference (POD’s) Desirable to consumer
Deliverable by the brand
Differentiating from competitors
Establish shared brand points-of-parity (POP’s) Negate competitor points-of-difference
Demonstrate category credentials
Brand mantras Short 3-to-5 word phrases that capture key POD’s & the irrefutable
essence or spirit of the brand.
13
Coca-Cola Positioning
Competitive frame of reference
Colas?
CSD?
Non-alcoholic?
Points-of-difference
Distinctive taste profile
Optimistic view of life
Classic, iconic symbolism & imagery
Points-of-parity
Contemporary, up-to-date
Refreshing flavor
Brand slogan
“Coke Side of Life”
14
Identifying & Choosing POP’s & POD’s
Desirable? (consumer perspective) Personally relevant Believable & credible
Deliverable? (firm perspective) Feasible Profitable Pre-emptive, defensible & difficult to attack
Differentiating? (competitive perspective) Distinctive & superior Sustainable
15
Identifying & Choosing POP’s & POD’s
16
Principles Reinforced By Miller Lite Launch
Both points-of-parity and points-of-difference are needed to be well-positioned
Points-of-parity and points-of-difference are often negatively correlated
Points-of-parity are NOT points-of-equality –there is a zone or range of indifference or tolerance
Points-of-parity may even need to be the focus of marketing communications as the points-of-difference may be a “given”
17
Miller Lite Update
Miller Lite had experienced flagging sales, falling behind both Bud Lite and Coors Lite
Management decides to create a powerful new position … Reaffirm core duality and functional benefit of less filling
& great tasting
Reinforce strong user imagery and emotional appeal as to uncompromising character
By addressing inherent product trade-offs and linking performance & emotional equities … Sales rise 10% during 2004-2005
18
Goal: Attack American Express & Marginalize MasterCard
Strategy: Neutralize & Differentiate Point-of-Difference: Acceptability & Convenience
Point-of-Parity: Status, Prestige, & Cachet
Tactics Larger merchant network
Gold and platinum cards
“It’s Everywhere You Want to Be”
19
Accenture Straddle Positioning Strategy
Accenture is the company that combines:
Strategic insight, vision, and thought leadership
Information technology expertise in developing client solutions
This strategy permits:
Points-of parity with its two main competitors, McKinsey & IBM
While simultaneously achieving points-of-difference
Technology
& Execution
Strategy
& Vision
Accenture
Straddle Positioning
(WHAT they do)
McKinsey IBM
Strategy
& Vision
Technology &
Execution
POP
POD
POD
POP
Accenture Straddle Positioning
Proactive, Agile,
& Passionate
Approachable &
Collaborative
Accenture
Straddle Positioning
(HOW they do it)
McKinsey IBM
Proactive, Agile,
& Passionate
Approachable
& Collaborative
POP
POD
POD
POP
Accenture Straddle Positioning
24
Accenture High Performance. Delivered.
25
Accenture High Performance. Delivered.
26
Communicating & EstablishingPOP’s & POD’s
Create POP’s and POD’s in the face of attribute & benefit trade-offs Price & quality
Convenience & quality
Taste & low calories
Efficacy & mildness
Power & safety
Ubiquity & prestige
Comprehensiveness (variety) & simplicity
Strength & refinement
27
Brand Mantras
Short 3-to-5 word phrases that capture the irrefutable essence or spirit of the brand.
Brand mantra must clearly delineate what the brand is supposed to represent and therefore, at least implicitly, what it is not
Brand mantras typically are designed to capture the brand’s points-of-difference, i.e., what is unique about the brand.
28
Brand Mantra Examples
Nike
“Authentic Athletic Performance”
Disney
“Fun Family Entertainment”
American Express
“Worldclass Service, Personal Recognition”
29
Brand Mantra Criteria
Communicate A good brand mantra should define the category (or
categories) of business for the brand and set the brand boundaries. It should also clarify what is unique about the
brand. Simplify
An effective brand mantra should be memorable. As a result, it should be short, crisp, and vivid in meaning.
Inspire Ideally, the brand mantra would also stake out ground that
is personally meaningful and relevant to as many employees as possible.
Starbucks Mental Map
sophisticated
earth colors
Seattle
coffee
consistent
convenient/everywhere
wholesome
relaxing
comfortable
predatory
faddish/trendy
snobbish/pretentious
confusing
expensive
customized
varietyexotic
quality
fresh
treat/reward
31
Starbucks Competitive Positioning
CompetitorFast food chains/
convenience shops
POP
—Convenience—Value
POD
—Quality—Image—Experience—Variety
Supermarket brands(for home)
—Convenience—Value
—Quality—Image—Experience—Variety—FreshnessLocal cafe —Quality
—Experience—Price—Community
—Convenience
32
Starbucks Brand Mantra
“Rich, rewarding coffee experience”
STARBUCKS BRAND POSITIONING WORKSHEETConsumer
TargetDiscerning
Coffee
Drinker
Consumer
InsightCoffee and the
drinking
experience is
often
unsatisfying
Consumer
Need StateDesire for
better coffee
and a better
consumption
experience
Competitive
Product SetLocal cafes
Fast food &
convenience
shops
Consumer
TakeawayStarbucks
gives me the
richest
possible
sensory
experience
drinking
coffee
Brand
MantraRich, Rewarding
Coffee Experience
Fairly
Priced
Relaxing,
rewarding
moments
Responsible,
locally involved
Rich sensory
consumption
experience
Varied, exotic
coffee drinks
Fresh high
quality coffee
24 hour
training of
baristas
Green &
Earth Colors
Siren
logo
Caring
Contemporary
Thoughtful
Convenient,
friendly
service
Triple
Filtrated
water
Totally
integrated
system
34
Some Positioning Guidelines
1. A good positioning has …• A “foot in the present” & • A “foot in the future”
2. Evaluate POP & PODs according to:• Desirable (consumer)• Deliverable (company)• Differentiating (competition)
3. Identify crucial POP’s• Role play competitor’s positioning• Surface & resolve potential consumer trade-offs
• Assess negative correlations & decision-making styles
4. Ensure duality• Rational (“Head”)• Emotional (“Heart”)
35
2. Brand Resonance Model Kevin Lane Keller (2001), “Building Customer-Based Brand
Equity: A Blueprint for Creating Strong Brands,” Marketing Management, July/August, 15-19.
36
Create Brand Resonance with Customers
Challenge is to ensure customers have the right types of experiences to create the right brand knowledge
Building a strong brand involves a series of steps as part of a “branding ladder”
A strong brand is also characterized by a logically constructed set of brand “building blocks.”
BRAND RESONANCE PYRAMID
RELATIONSHIPS:What about you & me?
RESPONSE:What about you?
MEANING:What are you?
IDENTITY:Who are you?
Intense,Active Loyalty
Positive,AccessibleReactions
Points-of-Parity& Difference
Deep, BroadBrand
Awareness
Resonance
Judgments Feelings
Performance Imagery
Salience
Stages of Brand Development
Branding Objective at Each Stage
1
2
3
4
Building Blocks
38
Brand Resonance Pyramid Terminology
Salience Depth and breadth of brand awareness
Recognition and recall at purchase and consumption
Performance What the brand does to meet customers' more functional needs.
Brand performance refers to the intrinsic properties of the brand in terms of inherent product benefits.
Imagery How people think about a brand abstractly rather than what they
think the brand actually physically does. Brand imagery is thus more extrinsic properties of the brand.
Four important intangible dimensions are: Type of user
Brand personality
History & heritage
Experiences
39
Brand Resonance Pyramid Terminology
Judgments Customers overall brand evaluations
How customers combine performance and imagery associations to form different kinds of brand opinions
Feelings Customers emotional responses and
reactions to the brand
Can be mild or intense; positive or negative; or experiential or enduring in nature.
Can also relate to the social currency evoked by the brand.
Dimensions of Brand Feelings
Brand feelings can be divided into two broad categories:
Experiential – immediate, short-lived during purchase/consumption
Enduring – private, possibly part of day-to-day life
Brands should have one, or ideally both, types of feelings
Experiential Feelings
• Warm
• Fun
• Exciting
Increasing
level of
intensity
Enduring Feelings
• Sense of Security (Inner-directed)
• Social Approval (Outer-directed)
• Self-Respect (Actualization)
Self-Respect
Sense of Security Social Approval
Inner-Directed Outer-Directed
Higher
level of
values &
needs
41
Brand Resonance Pyramid Terminology
Resonance The extent to which customers feel that
they are “in synch” with the brand
Intensity or depth of the psychological bond that customers have with the brand
Level of activity engendered by this loyalty
Repeat purchase rates
The extent to which customers seek out brand information, events, or other loyal customers
Etc.
Sub-Dimensions of Brand Resonance Pyramid
RESONANCE
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT
JUDGMENTS
QUALITY
CREDIBILITY
CONSIDERATION
SUPERIORITY
FEELINGS
WARMTH
FUN
EXCITEMENT
SECURITY
SOCIAL APPROVAL
SELF-RESPECT
SALIENCE
CATEGORY IDENTIFICATION
NEEDS SATISFIED
PERFORMANCE
PRIMARY CHARACTERISTICS &
SECONDARY FEATURES
PRODUCT RELIABILITY,
DURABILITY & SERVICEABILITY
SERVICE EFFECTIVENESS,
EFFICIENCY, & EMPATHY
STYLE AND DESIGN
PRICE
IMAGERY
USER PROFILES
PURCHASE & USAGE
SITUATIONS
PERSONALITY &
VALUES
HISTORY, HERITAGE,
& EXPERIENCES
43
Brand Resonance Model:Brand Building Implications
1. Customers own brands
2. Don’t take shortcuts with brands
3. Brands should have a duality• Performance & imagery
• Judgments & feelings
4. Brand should have a richness
5. Brand resonance provides important focus
44
3. Brand Value Chain Model Kevin Lane Keller and Don Lehmann (2003), “How Do
Brands Create Value,” Marketing Management, May/June, 26-31.
45
Marketing
Program
Investment
Customer
MindsetMarket
Performance
Shareholder
Value
- Product
- Communications
- Trade
- Employees
- Other
- Awareness
- Associations
- Attitudes
- Attachment
- Activity
- Price premiums
- Price elasticities
- Cost savings
- Expansion success
- Market share
- Profitability
- Stock price
- P/E ratio
- Enterprise value
- Market capitalization
Brand Value Chain
Brand Value Chain
Program
Quality
Marketing
Program
Investment
Customer
Mindset
Market
Performance
Shareholder
ValueVALUE
STAGES
- Product
- Communications
- Trade
- Employee
- Other
- Awareness
- Associations
- Attitudes
- Attachment
- Activity
- Price premiums
- Price elasticities
- Market share
- Expansion success
- Cost savings
- Profitability
- Stock price
- P/E ratio
- Market capitalization
Marketplace
ConditionsMULTIPLIERS
- Relevance
- Distinctiveness
- Consistency
- Cohesiveness
- Competitive reactions
- Channel support
- Customer size and profile
- Market dynamics
- Growth potential
- Risk profile
- Brand contribution
Investor
Sentiment
47
Three helpful brand planning models are: Competitive brand positioning model
Points-of-parity & points-of-difference
Brand resonance model Six building blocks: Salience, Performance, Imagery,
Judgments, Feelings, & Resonance
Brand Value Chain Value stages & multipliers
These models can be used … Qualitatively to guide & interpret possible marketing
actions Quantitatively to measure marketing effects
Conclusions
48
Thank You!