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ADOPT ABRAND!BRAND MANAGEMENT [ELECTIVE]
HAVE YOU FORMED
YOUR GROUP &
SELECTED YOUR
BRAND?
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DEVELOPING &
MANAGINGBRANDS
BRAND MANAGEMENT [ELECTIVE]BOOK CH.6
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Developing & Managing Brands
Since the1990s companies
have been well aware thatbrands are an asset [to] bereinforced and nurtured by
tangible innovations andintangible added values.
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The Rules of Brand Management
1.
Act as leader, be passionateabout raising category standards.
2. Sustain brands through
innovations in line with theirpositioning.
3. Create direct ties with end
customers, especially in marketswhere the trade pushes itsbrands.
4. Deliver ersonalized services.
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The Rules of Brand Management
5. Reward customers whobecome active promoters ofyour brand.
6. Encourage communities thatshare your values.
7. Quickly globalize the brand andits products.
8. Be ethical: big is not beautiful
any more.
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NEW Rules of Brand Managementneeded
WHY?
The traditional modelfor
managing brands, developed &practiced by successful globalFMCG companies like P&G and
Unilever, is now outdated &obsolete.
WHY?
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The New Rules of Brand Management:The Traditional Model
The Traditional Model was basedon the belief that:
1. A SUPERIOR PRODUCT was awinner as it responded betterto acustomers expressed need.
2. Linear thinking works:Promotions Trial Repurchase
Loyalty
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The New Rules of Brand ManagementFOUR Stumbling Blocks
1. [Superior product?] Absence of
durable, meaningful differences
between products.
2. Shortage of shelf space, superstores/
wholesalers pushing own products.
3. Split audiences who are also out ofthe range ofmass media.
4. Depleted loyalty - promotions making
customers even more sensitive to
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The New Rules of Brand Management:There are Cheaper Alternatives!
Cheaper alternatives to major brandsnow hold significant market shares in
most sectors: from FMCG sector toElectronics.
Chinese/ Korean imports replacing
many B2B/ B2C brands.
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The New Rules of Brand Management:Surge in Private Labels
In Carrefour outlets (UK):
Danone yogurts had replaced Nestle.
Now, Carrefouryogurts havereplaced Danone.
Tropicana was the leading juicebrand at Tescos.
Now Tesco Finest is replacing
Tropicana.
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The New Rules of Brand Management:The Market is Changing
1. Cheaper imports demonstrate that
traditional brand = universalbrand i.e. the response to all
customers needs.
3. Ability of brands to be present &
visible in every segment is A BIG
CHALLENGE.
2. Markets are now more & more
segmented by price - different brands
excel in different price segments.
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How P&G Has Been Managingits Brands!
At P&G every one of its brands has
to be the superior product.
P&G only launched mass-consumptionproducts that spoke for themselves &
made the difference in use.
Pampers: keeps the baby must bedrier;
Ariel washes better, & the difference
must be visible to the naked eye
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The New Rules of Brand Management:Is A Great Product = A Great Brand?
Maybe!
Continued ad infinitum it may lead the
brand to deliver diminishing returns.WHY? Investing for ever & ever in making a
Michelin tyre safer would result in
prohibitively higherprice & affect sales.
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One Dimensional Marketing
One-dimensional marketing is based on
a single, linear idea: BEST
PRODUCTBUY!
A One-Dimensional figure is A LINE, aline segments, a ray etc.
WHAT IS:ONE-DIMENSIONAL MARKETING?
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Limits to one dimensionalmarketing
2. Cost of marginal improvements isbecoming higher & higher.
1. A superior product is hard to CREATE,MAINTAIN & SUSTAIN.
3. Customers notice the higher price
easily, but the benefit increment goes
unnoticed.
One-dimensional marketing strategyhas reached its limits!
WHY?
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Limits to one dimensionalmarketing
EXCEPTION:
Gillettes one-dimensional model
still works. the art of planned obsolescence.
Over 3 decades, it has increased prices
significantly & out-run competition,through continuous innovation:GII Contour Sensor SensorExcel Mach3 Fusion/ FusionPower Proglide.
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New Brand Realities!
The NEW APPROACH TO BRAND
MANAGEMENT is the outcome ofthe adaptation of companies tothe new business environment.
HOW HAS THE BUSINESSENVIRONMENT CHANGED?
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New Brand Realities!
A.THE RISE OF THE SHOPPER:
i. Shopping a favorite past-time: malls,
arcades, shopping centers, factoryoutlets draw shoppers.
ii. Shopping is no longer a race it iseither a chore or a leisure activity.Shoppers & consumers are often notthe same person.
iii. Service and variety have becomeimportant considerations.
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New Brand Realities!
Nutella, Mars, M&M, Orangina, Boursin aresingle product specialty brands- Is theirfuture secure?
iii. Retailer brands dominating in
superstores: Retailers, Super- &
Hyper-markets investing in brands &match Mass brands.
WHAT IS THE FUTURE OF BRANDS
LIKE
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New Brand Realities!
C. FRAGMENTING MEDIA: CHALLENGEOR OPPORTUNITY:
i. More TV programs & hours to choosefrom.
ii. TiVo in 32% households in the UScreating TV without advertising.
iii. Internet a major rival of network TV: InEurope 50% of media consumption isnow interactive.
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New Brand Realities!
C. FRAGMENTING MEDIA: CHALLENGEOR OPPORTUNITY:
Google bought MySpace in 2006 &
YouTube.com some months later.
Google has launched Google TV: a
totally a la carte service. IS FRAGMENTATION A CHALLENGE
OR OPPORTUNITY?
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New Brand Realities!
iv. New media is growing rapidly, but it is
unlikely to completely dislodge major
traditional media such as TV or Print.
v. Print media: going online!
C. FRAGMENTING MEDIA: CHALLENGEOR OPPORTUNITY:
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New Brand Realities!
vi. TV is reasserting itself as anAUDIENCE AGGREGATOR
with redesigned Talk Shows, News
formats, iReporters, news/ videoson Websites, news on Twitter etc
C. FRAGMENTING MEDIA: CHALLENGEOR OPPORTUNITY:
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New Brand Realities!
D. CONSUMER EMPOWERMENT
Technology rewriting rules of
engagement:i. More mobile phones sold than TV sets;
ii. Nearly 20% internet users visit sites
dedicated for comment on products.
iii. Traditional media pick upconversations from blogs.
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New Brand Realities!
D. CONSUMER EMPOWERMENT
Internet is no longer a vision it iseasy, practical, offering a variety ofservices, information & games;
Blogs = the truth of the market;
Brand websites have become theofficial consumer magazines.
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New Brand Realities!
E. THE BIRTH OF THE CHOICEECONOMY
Growing demand for:
Product personalization, Services & image-based social
differentiation.
iPod & iTunes users create own
ro rammin .
Brands have lost their leverage [no
quality differential between brands;
minimal between branded & unbranded
products.
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New Brand Realities!
F. THE POWER OF COMMUNITIES:
Community marketing has a special
status in the US: Hispanics, African-Americans, Chinese Americans, affect
brand creation & communication.
Internet: a major facilitator of
interconnected marketing
communities.
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New Brand Realities!
Danone & Nestle websites areespecially designed to advise youngmothers;
Nikes involvement at street levelwith rappers & sports enthusiasts iscommunity marketing.
THE POWER OF COMMUNITIES: Phone companies offerservices to
sports fans by providing updates on
matches;
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New Brand Realities!
G.THE LIMITS OF MONO-DISTRIBUTION
Coca-Colas strength is its multipledistribution channels Virgin Cola unable
to compete in distribution
Danone is weak. WHY?
Over-dependent on big supermarkets. LOral successful as a brand for self-
service stores. NOW, more & more self-
service stores are promoting THEIR OWNbrand.
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in Reverse!
Building the Brand
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The Traditional Way of Building theBrand
Unfortunately, the traditional model isnow being openly questioned! WHY?
It has become too predictable!
STEPS:
1. Develop Product/ Brand
2.Achieve optimal distribution3. Launch marketing communication.
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Experts suggest an alternativeapproach
Building the Brand
in Reverse
starting much early
.with communication.
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Building the Brand in Reverse
Idea popularized by a French expert asthe Concept of Brand In Reverse.
HOW DOES IT WORK?
1. Rearrange sequence of brandintroduction.
2. Convert a brands first set of customersinto brand ambassadors GET A
CONVERSATION STARTED.
B ildi h B d i R
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Building the Brand in Reverse:So, What Comes First?
It is at the moment of conception ofthe
product or service (of choosing thename,
packaging etc.) that it is necessary toinject
the power ofcontagion not at theend,
when it is too late.
B ildi h B d i R
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Building the Brand in Reverse:So, What Comes First?
Nike launched its Converse brand of
shoes using a community approach
by creating the CONVERSEGALLERY involving customers.
Advertising is not used for Converse..
UPDATE: On Sep. 12, 2013, Converse &Maison Martin Margiela celebrate the launch
of a new collection: Sep 12, 2013.
B ildi h B d i R
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Building the Brand in Reverse:So, What Comes First?
BMWbefore launching the 3-, 5-, 7-
Series in the US, uploaded long-duration(4-5 min) films on the net, for viewers tosee at their leisure and experience theperformance of the car. The responsewas simply outstanding!
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From Brand Power to Brand Passion
Entrepreneurs like to change the worldwith their ideas. They succeed, becausethey turn their idea into a source ofpassion for others!
For LOreal: a womans happiness canonly be found in science and its ability to
turn back the years.
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From Brand Power to Brand Passion
For Nissan low supplier prices lead toLOWER PRICED CARS.
For Toyota QUALITY is the obsession.