Brand Management

Managing beliefs and attitudes – the only sustainable competitive

advantage

Basic Care

Beauty Care

Sophisticated Care

Performance Care

     Skin Care

The Caviar Collection

Swiss Cellular De-AgersMoisture Care FaceMoisture Care EyesCleansing EssentialsSpecialized SkincareBody CareSoleil SuisseFoundationCellular Treatment Colour and Care for Lips

Cellular Treatment Eye Colour

Cellular Treatment Colour for FaceArt of the Brush

NIVEA VISAGE

NIVEA BEAUTÉ

NIVEA Hair Care

NIVEA Creme

NIVEA soft

NIVEA body

NIVEA SUN

NIVEA FOR MEN

NIVEA Hand

NIVEA deodorant

NIVEA VISAGE VITAL

NIVEA Bath Care

NIVEA Lip Care

NIVEA Baby

NIVEA Intimate Care

Deo Sprays

Deo Roll-on

JUVEDICAL

PERSONAL SKIN COLLECTIONREJUVEN

REJUVEN ulti-maxJUVENANCE

JUVENANCE selectionJUVELIA

BODY

DISCOVER

SWISS BASICS

Sensitive Skin

Dry Skin

Sensitive Facial Skin

Impure Skin

Mature Skin

Sensitive Scalp

Sun Sensitive Skin

Creme

Hand & Nail

Face Care

vital

Body Care

Men

Shower & Bath

Soap & Care

Wellness

ARCTIC

WILD RIVER

Wound Care

Sport

Scar Reduction

External Pain Relief

Foot Care

Insect

Beiersdorf AG: Brand Mix

Product category structure

Drinks

Water Flavoured

Non-alcoholic Alcoholic

Milk Hot JuiceCarbonate Wine Beer Spirit

Cola Non Cola

Cocacola

Sprite

SquashSqueezed

FCNFC

Tropicana

TOP DOWN DECISION MAKING FROM PRODUCT CLASS 1

PRODUCT CATEGORY 2

PRODUCT TYPE 3

BRAND 4

1

2

3

4

Brand positioning

Self medicated wound care for sports related, muscle, and backPain, plus foot care and insect bites. We help to heal

All round care assortment, skin conditions for all the family

The leading dermocosmetic brand recommended by doctors andpharmacists

The brand with Swiss origins, restores the skin to what time hasTaken away

The specialist in high price anti-aging products. Available onlyIn selected specialist outlets

Effective and superior lip care now and in the future

The world’s biggest personal care brand – the mother of all creams since 1911

Long acting, highly effective deodorant in attractive fragrancesFrom trendy to classic

Brand awareness

• The product has an identity which links the brand to a product category and consumption or usage situations

• Depth of brand awareness measures how easily a brand comes to mind (“I have dry skin – what might help?”)

• Breadth of brand awareness measures the different usage situations in which a brand comes to mind (“I have dry skin and burn easily in the sun”)

Product level positioning

perfectly compatiblewith your intimate area. Confidence and well being all day long

Trustworthy andUnderstanding skinCare partner forBabies to ensureHealthyDevelopment rightFrom the start

Cares forThe mostVulnerableSkin youHave – thelips

Efficient face careAnd cleansingProducts adaptedTo the specialNeeds ofMature skin

FormulatedTo optimallyCare for theSkin toOffer theMost caringWay toEffectivedeodorisation

The competentHand care lineTo maintainThe beauty ofThe hands

The advanced mildCaring range whichCovers all male Facial skin careneeds

The safest sun careProtection for theWhole family plusAll the care ofNIVEA

Brings out the Best in your skin.Nivea Body isYour partnerIn skin care It feels like gentle

Summer rain forSoft and suppleskin

The originalMoisturiser forEvery skin typeFor daily use

Precious ingredientsTo protect andCare for your hair

The expertMake up with theSkin careCompetence of NIVEAAnd a passion forColour to Celebrate yourFeminine beauty

Face care whichVisibly enhances yourOwn beauty inHarmony with yourskin

THE MOTHER OF ALL MODERNCREAMS SINCE1911. TODAY NIVEAHAS DEVELOPED INTOA BIG BRAND FAMILY.FOR YEARS NIVEA HASBEEN THE WORLDSBIGGEST PERSONAL CARE BRAND

MASS PREMIUM SUPER PREMIUM

HANDSLIPS

INTIMATE

ANTI-AGING

DEO

SUN

COLOUR

MATURE

BABYBATH

MEN

BODY

SOAP

EVERYDAY

DERMO

WOUNDCARE

florena

NiveaBody

NiveaSoft

Juvena

LaPrairie

Eucerin

Hansaplast

Florena

NiveaLipCare

Labello

Florena

Nivea VisageVital

Juvena

LaPrairie

FlorenaNiveaCreme Juvena

LaPrairie

NiveaVisage

Juvena

LaPrairie

8x4NiveaDeo

NiveaSun

Eucerin

LaPrairie

NiveaIntimate

NiveaBeaute

LaPrairie

Florena

NiveaHand

Florena

NiveaFor Men

Juvena

Florena

NiveaBathCare

NiveaBaby

Skin CareSegmentMap

The Brand Portfolio Model (Riezebos)

BASTIONBRAND

FLANKERBRAND

FIGHTERBRAND

FLANKERBRAND

PRESTIGEBRAND

La Prairie

Juvena

LabelloEucerin

8x4

Florena

NiveaPremium strategyHigh perceivedperformanceMost profitableHighest share andT/OSpecific needs

Can be nicheStrategic importance(eg barrier to entry)

Priced between bastion and discountProtection from own brand/discount brandStrategic rather than financial importance

High quality perceptionHigh psycho social meaningHigh price

BPM rationale

• The essence of the BPM is to use other brands to protect the most profitable brand from competitive attack and customer defection

• Ries and Trout’s “teeter-totter principle”: one and the same brand cannot refer to two different experiences

• The boundary of a brand is determined by the different needs, desires and macro- segmentation variables of the target customer

Advantages of brand types

BRAND TYPE FINANCIAL ADVANTAGE

STRATEGIC ADVANTAGE

Bastion High High

Flanker Low High

Fighter Moderate High

Prestige High Moderate

Based on Riezebos

Brand – Product Matrix

lips Anti-aging n

Labello

Nivea

La Prairien

PRODUCTS

BRANDS

Brand line

Product line

Rows = brand/product relationships ie the number and nature of products soldunder different brands. This is breadth of branding strategy

Columns = product/brand relationships ie the number and nature of brands in eachproduct category. This is depth of branding strategy

Decisions about breadth of branding strategy

• Means decisions about breadth and depth of product mix (how many product lines and how many variants in each line)

• Breadth of product mix concerns attractiveness of product category measured by

AGGREGATE MARKETFACTORS

CATEGORY FACTORS ENVIRONMENTALFACTORS

Market size Threat of new entrants PEST factors

Market growth Bargaining power of buyers

PLC stage Bargaining power of suppliers

Cyclical Current category rivals

Seasonal Product substitutes

Profitability Category capacity

Category attractiveness criteria from Lehmann and Winer

Decisions about depth of branding strategy

• Depth is the number and nature of brands in each product class

• Why does Beiersdorf have multiple brands in the same product category?

• Basic principles of portfolio design (Keller): maximise market coverage so that no consumers are being ignored, minimise brand overlap so that brands aren’t

competing against themselves • Each brand should have a distinct target market and

positioning

The product within the brand

• The product is the primary influence on what consumers experience with a brand, what the firm can tell them about it and what consumers hear from others about the brand (Keller)

• At the heart of a great brand is a great product (Keller)

• For brand loyalty to exist and to grow brand equity consumers’ experiences with the product must meet and/or surpass their expectations (Keller)

• Brand attitude is more dependent on abstract imagery, symbolism and the personality reflected in the brand (Froggett)

• Augmented benefits and intangibles are more important than product performance (Froggett)

• Rarely can consumers articulate expectations of product performance and rarely does perceived quality shape future purchase behaviour (Froggett)

Great products Brand leaders

Product related performance associations

• For brands whose core associations are primarily product related performance attributes innovation in product design and manufacturing are crucial to brand equity (Keller)

• “Good products come from market research, great products come from R&D” Alfred Zeien former Gillette CEO “we increase spending in growth drivers (R&D, plants, equipment, advertising) at least as fast as revenues go up”

• See Gillette and Barbie case studies

Brand Concept Management (Park, Jaworski and MacInnis)

Functional needs – linked to basic motivations (physiological, safety). Solves externally generated consumption needs

Symbolic needs – internally generated needs for self enhancement, role position, social approval. Prestige, fashionability, exclusivity linked to self concept

Experiential needs – sensory pleasure, variety and stimulation

Functional concept

Soothes, calms andProtects sensitiveskin

Symbolic concept

“Advanced shaving”with “UltraglideTechnology”

Experiential conceptChamomile and vitaminsSubtle fragranceFresh and healthy skin

Look beyond product features: innovate across the whole product experience

Goffin et al 2005

Product and experience features fora laptop:

Battery lifeWeight

MemoryProcessor speed

24/7 free tech supportScreen resolution

Extending the brand

“Whether it's eating healthier, de-cluttering your life or changing the way you approach problems, there are lots of things we can all do to make things more comfortable.” Playtex.co.uk

New products and brand extensions

MarketPenetration

Strategy

MarketDevelopment

Strategy

ProductDevelopment

Strategy

DiversificationStrategy

MarketPenetration

Strategy

MarketDevelopment

Strategy

ProductDevelopment

Strategy

DiversificationStrategy

Options for branding the new product?

1. Develop a new brand individually chosen for the new product (Beiersdorf/Labello)

2. Apply an existing brand (Playtex, Branston Beans)3. Combination of existing and new brand (Nivea

Visage),

Brandextension

Types of brand extensions (Keller 2008)

• Line extension: apply the parent brand to a new product that targets a new market segment within an existing product category served by the parent brand (Nivea Visage, Walkers SunBites)

• Category extension: apply the parent brand to enter a different product category (Branston Beans, Playtex Tampons)

Tauber’s brand extension strategies

Same product/different form Mars Bar ice cream

New product containing brand’s distinctive taste or ingredient Bacardi Breezer

Companion products Durabeam torch, Aunt Bessie roast spuds

New product relevant to existing customer franchise

Products that capitalise on the firm’s expertise Honda lawnmower, Canon copiers

Products that reflect the brands distinctive benefit, feature, attribute

Apple iPod

Products that capitalise on the brand’s distinctive image, prestige, positioning

Chanel watches, Adidas tolietries

Brand extension advantages

ADVANTAGEIMPROVE BRAND IMAGE Pre-purchase evaluation based on knowledge of brand and extent to which this is

relevant to new product

REDUCED RISK PERCEPTION

Connection to a well known brand family increases likelihood of consumer trial

INCREASED CHANCE OF RETAIL LISTING

Brand reputation is a key screening criterion for retail buyers

INCREASED PROMOTIONAL EFFICIENCY

Advertising to sales ratios are lower for brand extensions than for new name entries. Existing brand links and associations aid CDP

HALO EFFECT Other brands in family benefit from launch and on-going marketing programmes

AVOID NEW BRANDDEVELOPMENT COSTS

Names, logos, symbols, packaging, slogans are expensive to develop

PACKAGING AND LABELLING EFFECTIVENESS

Greater prominence in retail environment, increased visibility

PERMITS CONSUMER VARIETY SEEKING

Consumers can purchase more product types without leaving the brand family