Download - New Stretegic Brand Management - Chapter 4

Produced by Kevin Almeida

CHAPTER 4:

BRAND DIVERSITY: HOW SPECIFIC ARE

DIFFERENT SECTOR?


ContentsAll about Luxury BrandsService Brands

Creating ValueThe human componentProcess and Recruitment Brands

The branding of NaturePharmaceutical BrandsB2B BrandsCountry BrandsCelebrity Brands


Luxury brands are specificHow is luxury brands different from luxury brands; Coach, Victoria’s Secret, Lingerie, Callaway golf

clubs, Belvedere Vodka or Nespresso Coffee – these brands are typical of trading up, as consumers move up the range.

There is a bit of luxury ingredients in these brands (better quality, selective distribution, emotive value). Let us return to its etymology.

Luxury is an enormous distance. There is a discontinuity between premium and luxury.


Luxury

Fashion Premium

Luxury Brands – Is creator driven, not consumer oriented. It is not managed at all like normal brands. Classical marketing kills it.

Premium Products – Are more traditional managed, and follow classical marketing principles.

Fashion System – Is obsessed with being out of fashion. Prices must be cut by 50%, and profitability disappears.

Dream

Seduction Realism

Priceless HedonismSuperlativeGift

Social elevationTimelessSelf distinction

Performances/PriceRational InvestmentComparative

Tribal DifferentiationImitationEphemeral


Four types of luxuryAffluent young executives with high purchasing power. It gives

prominence to the beauty of the object. Most representative of this type of luxury is Rolls-Royce.

Second type exalts creativity, the sensuality of the products. Representatives are Gucci, Boss and J-P Gaultier.

Third type values timelessness and international reputation more than any other facets. Representatives are Porsche, Louis Vuitton and Dunhill.

Fourth type values the feeling of being among only a few to posses the brand. Representatives are Chivas Royal Salute, Mercedes.


Luxury business modelDistinguishing between two different business

models for brands. 1. Brands with a ‘history’ behind them.2. Lacking such a history of their own, have invented a

‘story for themselves.

The luxury Pyramid

The griffe

The luxury brand

The Upper-range brand

The Brand

Money

AuraPure creation, unique work, materialized perfection

Small series, workshop, handmade work, very fine craftsmanship

Mass series, cost pressure, the spiral of quality

Series, factory, highest quality in the category accessories

AttributesRelations


Service brandsThere is no legal difference between product, trade or service

brands. These are economic distinctions not legal ones. Type of Service: Car rental, Temporary work, Computer

services, Leisure activities, Hotel business or Higher education. Service brands use ‘Slogans’. Slogans are indeed vocal, they

are the brand’s vocatio, it’s a commandment for both internal and external relations.

Through a slogan, the brand defines its behavioural guidelines, and these give the customer the right to be satisfied if they are transgressed.

Branding in the service sector entails a double recognition. Staff must recognize the brand values as their own. The internalization process is crucial.


How service brands create value

Branding in the service sector entails a double recognition.

Within the company people must recognize the brand values as their own. The internalization process is crucial.

Brand management in the service sector means not only delivering a differentiated experience but ensuring that the resulting satisfaction will be attributed to the right brand.


Human, process and recruitment of service brands

The first consequence is that the service brand is constructed internally. (It might be in the store, from the call center or over the internet)

The second consequence is that employees cannot be expected to treat customers well if they aren’t happy themselves.

In order to carry out the primary function of any major brand, the brand is necessarily linked to the setting up internal and customer facing processes.


The branding of natureFresh produce has an intrinsic variability derived

from the vagaries of nature; customer prefer the regularity and certainty.

Eg: Saveol Brand – the banner under which dozens of tomato producers have joined together, united by a single desire to create a superior and different product, to respect the same innovative production processes.

Extended Learning: ‘Building a Wine Brand’


Pharmaceutical brandsThe medical environment is characterized by several factors

that outline how and why ‘brand building’ is specific to it;All prescribers are known, put on file and stored on a

database. The available information is almost complete – through

doctor’s panels and pharmacists. It is possible to model demand in an econometric fashion,

due to the completeness of the information. The subject is highly scientific. Even if ‘B2C’ communication

is permitted under certain stringent conditions, the end client has little say in the final prescription decision.


Pharmaceutical Brands (Cont….)

Prescription is increasingly influenced by the final prayer; this particularly true of generic drugs.

It is a market where, given the short lifespan of patents-20 years- the day and year of generic drug’s launch can be predicted.

It is an increasingly regulated market. Given its low margins, if too many generic producers offer the same product, they will struggle to turn a profit.

It is a market where counterfeits flourish. In fact, the active ingredients of drugs can be bought at very low prices.


Business – to – business brandsBuyers engage in relationships, not simply

transactions. Most B2B purchases are risky; they concern ingredients of a product or service.

The corporate brand is the source of trust. The product brand is there to claim its uniqueness in delivering delight.


Industrial brands


The internet brand

The characteristics;Do not have clients, but users, known one by one. Promise a price advantage.Prove by experience.Permanently adapting and updating.Easy to globalize.


Re-capAll about Luxury BrandsService Brands

Creating ValueThe human componentProcess and Recruitment Brands

The branding of NaturePharmaceutical BrandsB2B BrandsCountry BrandsCelebrity Brands


Questions?


THANK YOU

Download - New Stretegic Brand Management - Chapter 4

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