brand development & brand equity

8/14/2019 Brand Development & Brand Equity

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Brand Developmentand Brand Equity

Food Marketing APEC 4451

Fall Semester 2009

Food Marketing APEC 4451

Fall Semester 2009

Dennis J. Degeneffe

The Food Industry CenterUniversity of Minnesota

Why Brand Equity

Value Model from an Economistsstandpoint:

Value = Goods and Services ProvidedPrice Paid

The Issue

The best value is some combination of the:Most goods & services

Highest quality goods & services

Lowest price.

Therefore the competitive edge goes to the:Low cost provider

Those willing to take the least profit

Assuming there is a large field of competitors(or potential competitors) this is not a veryattractive business proposition in the long run.

A Marketers Versionof the Value Equation

The development of brand equity improvesthe value equation:

Value = Goods and Services Provided + Brand EquityPrice Paid

Impact of Brand Equity

Brand Equity:

Adds value beyond the costs incurred inproviding the goods and services

Makes your business relevant in the minds of the

consumer.

Enhances profitability.

Creates a long term competitive advantage

Creating True Brand Equity

What is brand equity?

The ability to capture a place in the mindsof consumers

To be a relevant / preferred option with

respect to a particular area of need. Therefore it is more than a Brand Name/

Slogan/Jingle, it needs to be:

In the brands DNA

And connected to consumer needs.


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Focus on the Customers

Must FIRST understand why customers behave asthey do

Then understand what our brands can/could do forthem.

Note this tends to be backwards from the

conventional way to think about business.

The real voyage of discovery consists

not in seeking new lands, but in seeingwith new eyes.

-Marcel Proust

Conventional Perspective

Viewing Through a Product Lens:

What it is

What it is made of

Physical characteristics

Alternative Approach

View the Consumer Wo rld as it is.

Creating Relevance

You cant be everything to everybody.

Whose needs can we satisfy best: Types of customers The Who

The job of Segmentation

Types of situations The When Specific needs

Functional Emotional

Create strategies and plans that deliver against thoseneeds:

Examples

Nike Just do it!

Chevy Trucks Like a rock

Michelin Tires So Much is Riding

Pillsbury Sweet Rolls My heart to yours

UPS What Brown can do MasterCard Priceless

Capital One No Hassle

AMEX Financial Make life rewarding

All grounded in consumer need!

Brand Equity & Positioning

Its about understanding current customerperceptions of our brand and then improving itthrough the consistent communication of compellingbenefits.

Sometimes we stumble over the truth but wenormally manage to pick ourselves up, walk around it and

carry on.

-Winston Churchill


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Understanding Brand Equity

What key facts and feelings define our brandin the minds of consumers?

What is the single-minded expression of themost compelling, distinctive and credible thingour brand can do for the customer?

What key brand benefit can be used toposition our brand in the customers mindrelative to his/her needs and competitorbenefits?

Brand Evolution

The end result is to credibly fulfill an importanthuman need better than competition.

When our brand becomes synonymous with the

fulfillment of that need, it will grow as we single-mindedly execute marketing initiatives.

Benefits of Understanding

Brand Equity

Motivating, consistent and thereforehighly effective brand communication

Guidelines for brand developmentdecisions including innovation.

A common language for anorganization.

Impact and Measurement

Consistent brand definitions over time willnot change with changes in management or

agency account teams.

Brand awareness will grow among customers.

Advertising will have stronger business salesimpact.

Brand distinctiveness and image ratings will

increase

Brand growth will accelerate.

A few Case Studies

Progresso Soup

Was highly regional, trade promotion intensive brand.

Long track record of mediocre advertising, at best. Low brand aw areness. Advertising actually tended to drive Campbells sales more.

Process resulted in Identifying a core consumer target Young health oriented

adults. Differentiating motivating, credible message Ingredients and

taste experience you w ill appreciate.

Result: Strong copy test scores Dramatic in-market sales effect.


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Create-A-Meal!

Both a success and a failure.

Initially miss-understood the consumertarget.

When target was properly defined apowerful insight was identified.

Resulted in highly affective advertising.

Effort did not go far enough butStouffers did!

Louis Rich

Acquired by Oscar Mayer in late 1970s as

brand of the future. Strong growth through 1980s

Distribution

Skus

Turkey implied health benefit

Growth stalled in 1990

Insight discovered, and used to repositionbrand.Jumpstarted brand growth

Spawned significant new products i.e.Carving Board

Brand Mapping

Brand Mapping Process

A systematic way to evaluate brand andmarket data.

Results in a point of clarity on the mostcompelling benefit our brand offerscustomers.

Enables a marketer to respond tocompetitive challenge but still berelentless in keeping a brand sharplydefined in the customers mind.

General Approach

Understanding the market the customer.

Understanding current brand equity.

Understanding competitive brand equities.

Developing branding strategies to:

Reinforce

Evolve

Restage

Evaluating alternatives.

Developing communications to support

brand.

Overall Brand Mapping Process

DefineCustomer

Target andInsight

DevelopCurrent

CoreMeaning

DevelopCompetitive

BrandMap(s)

DevelopKey

BrandBenefit

ConductBrand

PositioningSession

CompleteBrand Map

DetermineImplications

Advertising

PR/Sponsorship

Promotion

Packaging

Pricing

DirectMarketing

Step 1 Step 2 Step 3 Step 4

Step 5 &

Ongoing

The shortest way to do many

things is to do only one thing atonce. -Samuel Smiles


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Defining The Consumer Target

Starts with a review of historical knowledge on thecustomer and the brand.

Sales Relationships

Focus Groups

Surveys

Segmentation

To supplement / enrich understanding customresearch may be needed.

Measure what is measurable, and makemeasure what is not so.

-Galileo Galilee

Dont Know your past, dontknow your future.

-Bob Marley

A Sometimes Disturbing Thought

We typically do not have strongempathy with our customer.

Therefore We Need To TalkTo Them

Custom Research

Objective is to understand consumertarget(s), and extract penetrating customerinsights.

Can be quantitative or qualitative or both. Identify functional needs

Individual / Type of organizationJobs the product must do.

But additionally should involve potentiallymore powerful connections:Affinity toward the brandNeeds and motivations surrounding the

purchase/usage of the brand and competitive

brands.

Importance of Targeting

Ways to Target Consumers

Geography Southeast, Metro areas, etc.

Demographics Households with children,Seniors, etc.

Lifestage College students, expecting moms

Behavior Heavy brand users, competitive brandusers

Attitudes Topic of next lecture.

Understanding Competition

What business are we in.

Who is direct competition.

What is their brand essence/key brand benefits,price.

How can we:

Differentiate ourselves

Claim a higher ground


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DefiningCurrent Core Meaning

Collaborative effort among all stakeholders: Management

Brand Management / Marketing

Advertising Agency

Strategic Planning

Sales

Likely will involve further qualitative research toprobe brand perceptions, and stimulate teamthought.

Mind set is key: Need to get it right if we have to stay here all night!

Tolerance to detail

Diageo Model for IdentifyingCurrent Core Meaning

Facts/Symbols thatSupport Brand Claims

Brand

Personality

Core

Meaning

1. 2.

3.4.

5.

6.7.

Core

Meaning

RationalAspects

EmotionalAspects

EasyHard to Resist

Tasty

Traditional

Warm

Inviting Aroma

Baked Goods

Treat

Makes Me SlowDown

Connects With Family

Satisfies

Delights My Senses

Allows Me ToContribute

Enhances theMeal

Invokes Memories

Connected

AReal Mom

In Control

Valued

Accomplished

Re-grounded

Balanced

Caring & Loving

Fun

Family Centered

Got it Together

AGood Mom

Bake-UpBlue

The Doughboy Barrelhead

Popping Can Poke and Giggle

Helpful Dependable

Playful Genuine

Lovable LoyalCheerful Optimistic Open

DELIGHT

HEART & SOUL

REUNION

2000 Pillsbury Equity2000 Pillsbury EquityExamples of Core Meaning

Michelin Safety, Security, Family Protection

Coca Cola Real, Energizing, Connected

Nike Challenge, Involvement, Achievement

BMW Technology, Control, Elegance

Green Giant Lifesource, Health, Balance

Leveraging Brand Equity

Reflect Positioning in all marketing mixelements:Advertising

Promotion

Packaging

PricingPR / Sponsorship

Direct Marketing

Define contributing strategy statements.

Use on continuing basis in the developmentof new marketing initiatives.

A Caveat toMarketplace Execution

Major difference exists in What we want tocommunicate versus How it is said.

Often customers need to make a mental connection saying it directly might not be sufficient.

Need creative messaging.

But also should confirm with research.


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Example

Fulfilling a Human Need

Industrial Cleaning Product

Historically brand was functionally focused

Conducted among customers. Defined customer as buyer of Cleaning Supplies

typically janitorial.

One on one interviews

Identified a key customer insight:

How might the manufacturer go beyond thefunctional aspects of the product, and address thehuman need?

The desire to be respected by other functions inThe desire to be respected by other functions intheir respective organization.their respective organization.

Key Points

Its really brand equity that makes the valueproposition an attractive proposition to themarketer.

Brand equity is about capturing a special place inthe consumers mind.

To do so it starts with the whoand the when.

Powerful brands go beyond the functional, anddeliver emotionalbenefits

The brand mapping process is a systematicwayto understand and rally behind brand equity.

Then the entire Marketing Mixneeds to reinforcebrand equity.

brand development & brand equity

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