keller 3e video guide

Video Guide Strategic Brand Management Video Library, 3rd edition

Kevin Lane KellerRevised by Andrew Schneller

ACCENTURE

Summary:Formerly Andersen Consulting, Accenture is a global management consulting, technology services, and outsourcing company. In 2001, a court ruling forced Andersen Consulting to change its name, jeopardizing the firm’s brand equity. Rather than viewing the name change as a setback, Accenture’s marketing executives used it as an opportunity to reposition the company and reintroduce it to customers.

Discussion Questions:1. How did Accenture transfer the brand equity from its original name, Andersen

Consulting, to the new company name?Through a careful marketing campaign, Accenture tied its new name to the old company while distinguishing the firm from its former parent company, Arthur Andersen. By communicating well with existing customers throughout the process, the company transferred much of its brand equity to its new name.

2. Evaluate the Accenture brand name using the six criteria detailed in the chapter.Student responses will vary. The six criteria are: (1) It should suggest something about the product’s benefits and qualities. (2) It should be easy to pronounce, recognize, and remember. (3) The brand name should be distinctive. (4) It should be extendable. (5) The name should translate easily into foreign languages. (6) It should be capable of registration and legal protection.

3. How did Accenture use the requirement to rename the company as an opportunity to reposition itself?While reintroducing the company to current and future customers, Accenture redefined its strengths and clarified its position in the marketplace.

Teaching Ideas:1. Have students try to think of any other company that rebranded

themselves and how successful they were. Ask them about what they think of Accenture and how strong their brand is.

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AFLAC

Summary:That wacky quacky duck brought AFLAC to a high spot among most recognizable ads and brand names. The insurance company is growing quickly as a result of this greater name recognition. Brothers John, Paul, and Bill Amos founded AFLAC (American Family Life Assurance Company) in 1955. The company now has annual revenues of more than $11 billion and is Japan’s largest insurer. A great deal of its recent growth can be credited to the “duck.” Since he was introduced in 2000 in the United States and Japan, he has been featured on numerous television shows and has secured tremendous visibility for AFLAC.

Discussion Questions:1. What brand building tactic is Aflac most successfully using in this case?

Aflac is using a character to help build its brand. Characters can be a powerful tool because they are colorful and rich in imagery. Aflac is using the character primarily to build brand awareness, not to communicate its brand positioning.

2. Which of the six criteria for choosing brand elements is Aflac addressing with the Aflac Duck?The Aflac Duck is primarily addressing memorability, likeability, and transferability. Aflac management recognized that the name was not memorable and certainly not likeable to target customers. The Duck’s humorous and memorable voice makes him memorable and likeable. The fact that the Duck is not specifically tied to a product or service makes it easily transferred to new products. The remaining criteria (meaningful, adaptable, and protectable) may be addressed in other aspects of Aflac’s sales and marketing. For example, the meaningful elements of Aflac’s brand are communicated primarily by its salesforce.

3. Humor is the cornerstone of AFLAC’s wacky duck advertising. Why do you think it works for such a serious product as insurance? What other industries, products, or brands have used humor to help position themselves in the marketplace?Perhaps humor works for AFLAC because it is only associated with the name, not the company’s attributes. The campaign has certainly managed to cut through the clutter of thousands of television ads aired every day. The commercials make consumers laugh and the sounds uttered by the duck (the AFLAC name) are memorable – both keys to brand recognition. Other brands to use humor are Budweiser (which restricts most of its advertising to this creative execution style), Geico, Holiday Inn, and American Express. Since humor is one of the most powerful advertising tools, many companies use it. However, humor is tricky and is subject to the wear-out factor.

4. Now that AFLAC is a widely known brand name, do you think the company should drop the duck? What else might it feature?

Once name recognition is strong, consumer behavior models suggest the company would have created a hunger for more information. Perhaps AFLAC could answer some of the following questions as it continues to produce its ducky commercials:

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall2

"Yeah, okay, the duck. I know the name is AFLAC because it sounds like that duck, but what does AFLAC do? Oh, insurance. Well, what kind of insurance? My company doesn’t make AFLAC available. How do I know it’s better? How would I convince my company that we need that option? Could I buy AFLAC for my other insurance needs? How would AFLAC policies and prices compare to the insurance policies I already have? Where do I go for more information?” AFLAC’s test marketing of its advertising and market research should answer whether or not the duck has achieved wear-out.

Teaching Ideas:1. Exercise: Have students identify two examples where a company uses a character to

build its brand. Then, ask them to determine which of the criteria for brand elements the company is addressing with the character. If the character has been used for an extended period of time, have them determine how and why the character has evolved.

2. Have students consider how the school mascot “brands” the school. If students were to choose another mascot, which would it be? Why? How does the student’s choice better reflect the personality and values of the school?


AMERICAN EXPRESS

Summary:American Express offers more than 20 consumer cards and 14 small business cards, in addition to its customizable corporate cards. Some cards target very specific consumers. By targeting such specific consumers, American Express builds strong relationships with the right customers.

Discussion Questions:1. How was the American Express brand limiting the company’s growth?

Consumers strongly associated the American Express brand with travel and leisure spending. It was the preferred card for making travel and dining purchases. Consumers did not associate the American Express brand with everyday purchases.

2. How did American Express use new brand associations to drive consumers to use their American Express card for everyday purchases.Ameircan Express associated its brand with Jerry Seinfeld, a popular television star and comedian. Jerry Seinfeld’s humor focuses on the everyday aspects of life and his public persona is one of the “everyman.” Advertisements with Jerry Seinfeld using his American Express card to make everyday purchases such as gas helped extend the American Express brand.

3. How and why did American express use a brand extension? Were there risks in this move?American Express’s launch of the Blue Card is a brand extension intended to target new and younger customers. The existing American Express brand and products did not resonate with young customers. The Blue Card was positioned as the card of the future. This not only allowed for American Express to reach a new audience, but it improved the overall brand image. There were some risks in launching the new Blue Card. It could have confused customers, harmed the existing brand image, or dilute the meaning of the American Express brand.

Teaching Ideas:1. Have students think of examples where a company with a strong brand

launched a new product and/or marketing campaign intended to build and evolve the brand? What were the potential benefits? What were the potential risks? Did the company succeed in its efforts?


DUNKIN DONUTS

Summary:For more than fifty years, Dunkin’ Donuts has offered customers throughout the United States, and around the world, a consistent experience—the same donuts, the same coffee, the same store décor—each time a customer drops in. Now the largest coffee and doughnut chain in the world, Dunkin’ Donuts serves more than 2 million customers each day at more than 5,500 restaurants in the United States and abroad. The company plans to more than triple its current number of stores, amassing 15,000 franchises by the year 2015.

Discussion Questions:1. How has Dunkin’ Donuts maintained brand consistency over many decades?

By focusing its brand image on quality and consistency, Dunkin’ Donuts has been able to maintain a consistent brand image. While new product introductions are launched regularly and Dunkin’ Donuts has focused increasingly on coffee products, relying on principles of product quality and consistency have kept the brand strong over time.

2. What is Dunkin’ Donuts value proposition?Dunkin’ Donuts offers coffee and food for “everyman.” The chain works because it is accessible, rather than upscale. Dunkin’s customers include blue- and white-collar workers across all age, race, and income demographics. Dunkin’s positioning and value proposition are pretty well summed up in its new ad campaign, which features the slogan “America Runs on Dunkin’.” Says one ad, “It’s where everyday people get things done every day.”

3. How is Dunkin’ Donuts' growing its share of customer? How has the brand evolved accordingly?Dunkin’ Donuts is growing its share of customer by offering a greater variety of products. The chain has added iced coffee, breakfast sandwiches, smoothies, gourmet cookies, and Dunkin’ Dawgs to its standard line up of breakfast foods and coffee. The launching of new products is conducted with the brand strategy in mind. Products are launched only if they are of high quality, simple, and for the “everyman.”

Teaching Ideas:1. Ask students to visit a Dunkin’ Donuts store and visit the company’s website. Based

on the information presented in the video and the information and experiences gathered in the store and online, ask students to assess Dunkin’s Donut’s points of differentiation and points of parity.

2. Have students divide into two groups, those who prefer Dunkin’ Donuts and those who prefer other coffee shops, such as Starbucks. Ask students to list companies and brands with which they have relationships. How do the lists of brands and companies compare? Ask students to discuss how their relationships were formed and what


communications, if any, from the company have shaped the relationship. Ask how the relationship impacts their buying behavior and impressions of the company’s brands and products.


EATON

Summary:Eaton is one of the world’s largest suppliers of diversified industrial goods. Eaton’s products make cars peppier, 18-wheelers safer to drive, and airliners more fuel-efficient. At Eaton, B2B marketing means working closely with customers to develop a better product. So the company partners with its sophisticated, knowledgeable clients to create total solutions that meet their needs.

Discussion Questions:1. What is Eaton’s value proposition?

Eaton solves problems for the end customer by providing innovative solutions that are applied channel-wide. Eaton’s brand promises to provide innovative products delivered on time and with a high level of service and support.

2. How does Eaton’s brand building activities demonstrate the differences between business-to-consumer and business-to-business branding? Is there a difference?The strategy and tactics employed to build a B-to-B brand are no different than those employed to build a B-to-C brand. The difference is that customers behave differently. As explained in the video, B-to-B customers are quite different than B-to-C customers. B-to-B customers are more sophisticated, have far more knowledge of the various suppliers, and are much more specific about their needs. When selling to these customers, Eaton focuses on the specific needs of the individual customers and communicates Eaton’s brand through direct contact with these customers. These modes of communications include the products themselves and any related materials, the sales force, and other B-to-B marketing tools.

3. How does Eaton brand itself across many segments and channels?Eaton is faced with addressing several types of buyers across several segments and channels. Eaton tailors its products and selling efforts to those buyers, while maintaining a consistent brand across channels.

Teaching Ideas:1. Give students two minutes to list all of the business-to-business marketers they can

recall. Give them an additional two minutes to list all of the business-to-consumer marketers they can. Chances are, the list of b-to-c marketers is considerably longer. Do any marketers make both lists? Ask students to think about the enormity of the b-to-b market as compared to the b-to-c market. Why aren’t they more aware of b-to-b marketers?


HARLEY-DAVIDSON

Summary:Harley-Davidson sells much more than motorcycles. The company sells a feeling of independence, individualism, and freedom. To support that lifestyle, Harley-Davidson offers clothes and accessories both for riders and those who simply like to associate with the brand. By understanding customers, Harley-Davidson has grown into a $5 billion company with more than 900,000 Harley Owners Group (HOG) members and 1,200 dealerships worldwide.

Discussion Questions:1. How has Harley Davidson maintained brand consistency over many years?

The company is careful not to respond to recent trends in pop culture and the motorcycle market. Rather, Harley Davidson maintains to its core message of independence, freedom, the open road, and adventure in all branding vehicles. Much of the branding is left to riders and the ownership groups, who project the image that Harley Davidson has built over the previous century.

2. Does Harley Davidson’s merchandising of clothing and other products fortify or leverage the brand?Harley Davidson’s merchandising does both. It leverages the brand by taking advantage of the high level of awareness and positive brand image to sell products that are related to the core motorcycle product. It also fortifies the brand by developing products that are related to the activity of riding the company’s bike. All of the merchandise supports the central theme of independence and freedom.

3. How does Harley Davidson manage its brand globally? Are they standardizing their brand management or customizing it to foreign markets?Harley Davidson is using both standardization and customization. They work hard to standardize the core brand message of independence and freedom, while allowing country managers to implement that core brand message in a manner that is appropriate for the foreign market.

Teaching Ideas:1. Ask students to list the characteristics of the typical Harley owner. Then ask them

how Harley-Davidson’s marketing efforts target those and other consumers.

2. Have students play the role of a merchandiser of Harley Davidson products. What products other than motorcycles are appropriate? What products are inappropriate and why?


HASBRO

Summary:It all started with GI Joe back in 1964. That was when Hasbro, now a $3 billion company operating in more than 100 countries, launched the now legendary toy and pioneered the action figure category. Since then, the company has developed scores of new toys that are well known to children and adults around the world. Hasbro’s brands include games such as Hungry Hungry Hippos, Parcheesi, Risk, Trouble, Scrabble, Outburst, Twister, Pictionary, Boggle, and Monopoly. The company also sells Tinker Toys, Lite-Brite, Transformers, Glowworms, Mr. Potato Head, VideoNow, and Play-Doh.

Today, to keep up with constantly changing trends in the marketplace, Hasbro develops almost 1,000 new products annually and launches nearly 80 percent of those products within a year’s time. Getting all of those products to consumers requires a reliable and efficient supply chain and a well-tuned marketing channel. Hasbro’s products can be found in toy stores, drug stores, wholesale stores, and even grocery stores.

Discussion Questions:1. How would you describe Hasbro’s brand hierarchy?

Rather than brand every product as a Hasbro product, Hasbro has chosen to emphasize brand families. Much like General Motors sells a series of car brands, Hasbro sells a series of games and toys that each has its own brand. Examples of these are Monopoly, Easy Bake Oven, and Play-Doh. Each of these brands may then have individual brands underneath them with various modifiers. The Hasbro corporate brand may or may not be associated with the family brands.

2. What channels are Hasbro using and how does this affect its brand strategy?Hasbro distributes its products through indirect channels with a heavy focus on mass merchandisers. Hasbro is able to leverage the brand equity of retailers such as Target and Best Buy and transfer this equity to its own brands.

3. How does Hasbro work with retailers to build its brands?Hasbro will cooperate with its retailers to integrate its products into the retailers advertising. This transfers brand equity from Hasbro to its retailers and vice-versa. The result is that Hasbro is targeting customers where they want to shop and working with the retailer to drive sales of the company’s products.

Teaching Ideas1. Have students visit three different types of retail stores frequented by children or

families. Have them make a list of products sold at each store find. Did they find any Hasbro products? What other products did students find that they didn’t expect at each retailer? How is the retailer using the Hasbro name to build its brand? How does Hasbro benefit from the retailers brand?


HONEST TEA

Summary:The founder of Honest Tea started by meeting his own desire to have an organic soft drink. Armed with a simple product sample, Seth Goldman pitched his new tea to a buyer of Whole Foods. The buyer signed his first order and Honest Tea was founded. Now, there are 11 varieties sold in thousands of retail outlets around the country. The company recently hit breakeven and expects to continue growing at current rates.

More important than Honest Tea’s successful launch is its focus on social responsibility. Honest Tea has become a role model of philanthropic business practices. Although the company is barely at breakeven, it has already donated several thousand dollars to low-income communities. Seth has partnered with South African farmers and the Crow nation, both areas with high unemployment, to farm and sell crops for tea production. Not only does the purchase of the crops benefit the farmers, Honest Tea donates 1% of all sales in royalty fees for community development. Seth believes a social mission is not only socially responsible, but also financially sustainable because it enhances customer loyalty. The hope is for Honest Tea to become a well-known national brand and have impact around the world.

Discussion Questions:1. How is Honest Team using cause marketing to support its brand?

Honest Tea’s corporate social responsibility – specific its use of ingredients purchased from poor regions of Sough Africa, is part of Honest Tea’s usage of cause marketing to brand itself. The cause helps Honest Tea build brand awareness, enhance its brand image as a company that cares for people, establishes the brand’s credibility, evokes positive brand feelings, and creates a sense of community among Honest Tea drinkers.

2. How does Honest Tea execute its cause marketing?Unlike some firms which use causes as an explicit part of marketing and advertising campaigns, Honest Tea uses its corporate social responsibility as a strategic means to gain competitive advantage over other beverages. Its dedication to just causes provides a point of differentiation from established beverage companies. Without the firm’s corporate social responsibility initiative, its brand name Honest Tea would not resonate with target consumers.

3. What brand risks are present when utilizing cause marketing?Firms that use cause marketing may see the strategy backfire because it can be viewed as self-serving or commercial. If the target customer base feels that the firm is using corporate social responsibility solely to sell ice-tea products, it may damage the brand. It is vital for the firm to be genuine in its efforts and make some clear connection between its socially conscious efforts and the brand itself..

Teaching Suggestions:


1. Ask the students to provide some examples of companies that use corporate social responsibility as an important part of their brand building activities. Which of them are successful? Which are not as successful?

Then have the students select a company that may be able to use cause marketing and corporate social responsibility to build its brand but is currently not. What tactics could the firm use? How would these efforts benefit the brand?


INTEL

Summary:With cutting-edge technology continually increasing, Intel decided to take its marketing to a more advanced level, keeping in line with its product development. Initially, the company was having a hard time getting technology managers to switch from the 286- to the 386-processor. Intel realized it needed to market more to the end user of its microprocessors to distinguish itself from others on the market. First, the company marketed business to business. Then, with a very small marketing budget, the team test-marketed a billboard campaign in Denver promoting the new processor. Based on the response, Intel decided to take the campaign nationwide. This was the first marketing effort focused on reaching the end user. Inadvertently, the team created a brand that is both recognizable and memorable.

Discussion Questions:1. Intel was the first computer component company to brand and market a

microprocessor. How did it distinguish “Intel Inside” and make it a factor that consumers deemed important?

The success of the campaign and future campaigns hinged on convincing customers that what was inside the computer is just as important as what is outside. Intel had to create an “ingredient brand.” Microprocessors are just one piece of the whole computer system. But Intel had the best product in its space and one that makes a significant difference in the overall performance of the PC. Therefore, the marketing team realized it had a product that could be branded and marketed to the end user.

2. It takes a great deal of money to create a brand. How did Intel generate brand awareness without spending the millions it usually requires?

To help offset some of its costs, Intel entered into marketing agreements with several OEMs. To make these arrangements effective for Intel, the marketing team had to communicate the brand in a few seconds or less within the OEM’s ad. The result was the Intel jingle.

Teaching Ideas:1. Creating advertising copy can be a tenacious task. Intel managed to initiate broad

acceptance for all of its products using the Intel jingle to capture attention and by stressing the importance of the processor in computer performance. Why do you think Intel and the Pentium processor have been so successful?

Over the years and stacks of market research, the company has built significant brand

equity in “Intel Inside” and subsequently the Pentium processor. The marketing team has capitalized on the brand equity by utilizing the brand message for all of the new products, including the Pentium product name. Each process is marketed independently but under the same brand. The future success of the company is in continuing to create advancing technology and maintaining its strong brand equity.


MARRIOTT

Summary:When a person is traveling, regardless of the travel purpose, Marriott offers a complete family of hotels, one of which is sure to meet individual needs. From luxurious full-service hotels and resorts to all-suite hotels to affordable lodging along the way. Basically, there is a Marriott for everyone. Marriott is the first hotel industry player to apply segmentation, targeting, and positioning to the lodging industry. The company has divided its brands into consumer-recognizable segments, each meeting the needs of a particular niche of the market, from amenities-filled resorts and extended stays to comfortable overnight accommodations. Marriott has successfully implemented marketing public relations campaigns and advertising to establish each brand’s recognition and the unique value associated with its level of services and its pricing structure.

Discussion Questions:1. How does Marriott use advertising and target marketing to promote its individual

brands? Marriott creates a different lifestyle experience for each level of its lodging family,

highlighting those features that will most appeal to its target segment. By doing this, the company also prevents the consumer from confusing the brands and from drawing false perceptions of the benefits each facility offers. For example, television and print advertising for a Marriott will portray a different lifestyle experience from that of a Ritz-Carlton, and a Courtyard will be portrayed differently from a Renaissance Hotel & Resort.

2. If Marriott wants to go after the entire market, why can’t it do that with just one brand? If the goal is to secure every consumer dollar available in the lodging industry, it is

best to divide the market into segments and to figure out how to please each segment. Marriott has done just that on a global basis. Marriott International operates more than 2,600 hotels and resorts around the world and a growing list of websites in support of its worldwide operations. The result is a conglomerate of lodging accommodations that are recognized and trusted by businesses and consumers to maintain quality, value, and service.

Teaching Ideas:1. Ask students to analyze Marriott’s basic media strategy and how they use various

elements of the media to build brand equity.

Replies will be varied, but one basic premise should evolve from the analysis – Marriott centers on the maximum number of customers for each market segment by using demographics and psychographics as well as behavior patterns to develop its media campaigns. Consistent service, convenience, and smiles of satisfaction are predominant components of every ad, all designed to build equity for the company’s brand names.


MAYO CLINIC

SummaryBy managing patient experiences and focusing on the clinic’s environment, the Mayo Clinic has built a strong brand image. The payoff is exceptionally positive word-of-mouth and true customer loyalty which allow the Mayo Clinic to build a powerful brand with very little advertising.

Discussion Questions: 1. How does branding a service differ from branding a product? How has

the Mayo clinic taken these differences into account? Services are intangible, often making it difficult to communicate brand traits to consumers. For example, positioning a brand on attributes is more difficult for service providers. Service attributes are difficult to demonstrate and judging service quality often requires subjective assessment. The Mayo Clinic overcomes these difficulties by successfully managing the four service characteristics.

2. How does the Mayo Clinic reinforce its brand image without advertising?By training doctors and service providers to be patient centered and creating an atmosphere that makes patients comfortable, the Mayo Clinic strengthens its brand image. In addition, word-of-mouth patient testimonials add credibility to the brand’s strengths.

3. The Mayo Clinic has licensed its name for limited uses, including branded content on various Web sites. In addition, the Clinic has lent its name to several publications, including the Mayo Clinic Williams-Sonoma Cookbook. What are the risks the Mayo Clinic assumes with licensing and co-branding efforts? What are the benefits?Co-branding and licensing the Mayo Clinic brand gives the clinic the opportunity to reach new audiences and further build brand image. However, without careful selection of branding and licensing partners, the Mayo Clinic risks tarnishing its strong image by associating its name with unestablished products and ideas.

Teaching Ideas1. Have students choose a service company that has a particularly strong brand. Ask

them to discuss why the brand is so strong? How does the brand communicate the dimensions of quality that are important to the target customers?


MOTOROLA

Summary:Motorola's new Moto phone is used to illustrate how advertising helps to build a brand. The company is a global leader in wireless, broadband, and automotive communications technologies. Motorola manufactures and markets infrastructure communications systems, customized radio communications and information systems, and is a global leader in developing and deploying digital broadband entertainment, communication and information systems for the home and for the office. Motorola technology enables network operators and retailers to deliver products and services that connect consumers to what they want, when they want it. Motorola advertises all across the globe, targeting business, technology service providers and consumers who fit its strategic plan. The Moto is the latest product designed to capture consumer attention.

Discussion Questions:1. In what way did Motorola revitalize its brand?

Motorola’s brand had strong brand awareness, but the brand meaning was not what the company wanted it to be. While known for high quality cell phones, the brand was not perceived as hip or cool. Other cell phone brands such as Nokia were perceived as cool, which resonated strongly with the global customer base. By using the Moto name and creating advertising that positioned Moto as cool and hip lifestyle brand, Motorola was able to revitalize the brand with a positioning that was more appropriate for target consumers of cell phones.

2. If you were to design an integrated marketing communications plan for the Moto in the United States, using billboards, the Internet, radio, and print, what features and benefits of the cell phone would you play up in each of these media? Why? What needs to be consistent across the media? What needs to be different and in which particular medium? Theory suggests that the detailed, technical features must be made available via specific media, allowing consumers to read at their own pace and to consider all of the features and benefits of the product, with an opportunity to review information as necessary. These elements of consumer learning suggest that Web pages and print ads would be best suited to describe technical features. In contrast, sex-appeal types of general benefits (“Isn’t this a cool phone?”) are best displayed vividly—for example, via billboards, a page on the Web, perhaps radio, and probably TV. What needs to be consistent is the brand name and the brand essence—the basics of what the company wants people to know about its brand.

3. How would you modify your plans to promote the phone in China? In Finland (home of Nokia)? In Brazil (big youth market)? What is Motorola doing now, according to the video?Motorola is familiar to people in these countries. The Chinese might find U.S.-built phones attractive. They might appreciate value. Finnish customers might not be won until the Moto is truly a cooler-looking phone than the Nokias that are available. The


young Brazil crowd is a great exemplar of what Motorola seeks in general—appealing to a younger segment.

Teaching Ideas:1. Most students probably have a cell phone. Ask them why they chose a particular

brand/service. Ask students to go online in search of a new phone service. Would they make the same choices? For example, would they choose the same brand? The same type of call package? Would they base their decision on price? Why or why not?


NIKE

Summary:Four decades of effort and hard work have created a symbol that is recognized across the globe – the Nike Swoosh. To be the biggest global sports brand, Nike focused on creating an innovative corporate culture, producing the best athletic shoes, and conveying its deep beliefs and values to consumers. The company has created a culture that is based on its mission statement, which focuses on innovation. This focus has become razor sharp as Nike realizes everything a company does communicates something about the brand.

Discussion Questions:1. Nike’s brand awareness is very high, yet it still advertises heavily. Why?

Nike is not only trying to build brand awareness but also create brand relevance and feelings that align with its promise of value. The company’s marketing communications are intended to tell a story that highlights Nike as an innovative company that delivers athletes great performing products.

2. How does the “Pyramid of Influence” work in building Nike’s brand?Nike’s brand promise of value is to serve the athlete with great performing products. By serving top, high-profile athletes, the top of the pyramid, Nike is able to communicate to the entire customer base that they are delivering on their brand promise of value.

3. How does Nike leverage secondary brand knowledge to strengthen its own brand?Nike’s endorsements of famous athletes are an important part of their own brand building. By associating the products with Michael Jordan, Nike is able to leverage his brand equity as a top athlete. When Nike decided to use soccer as an important piece of its global brand strategy, it used international soccer stars such as Ronaldo to leverage existing brand equity to build its brand.

Teaching Ideas:1. Discuss how Nike’s growth can be attributed to its targeting of diverse market

segments.

The three main segments are 1) performance athletes, 2) participant athletes, and 3) those that influence the world and the culture of sport. A different promotional strategy is executed for each segment with many advertisements focusing on lifestyle first and the product second. Additionally, market research helped the company develop the pyramid of influence, which showed that top athletes influence the majority of the market. Consequently, the company spends millions on celebrity sports endorsements.

2. The Nike Swoosh is one of the most recognized product symbols in the world, but that doesn’t make the company’s products automatically successful outside the United States. How does Nike approach these international markets?


After more than one failure abroad, Nike determined that market research is a crucial element of its global operations. For example, to increase market share in Europe, Nike needed to produce a strong soccer product. The company achieved that goal by soliciting the input of star global soccer athletes first, then producing a product that met their needs. The product then translated to the broader marketplace.


NIVEA

Summary:In 1911, NIVEA introduced a revolutionary product, NIVEA Crème, in a simple blue tin. Still in its signature blue tin, today the Crème is the centerpiece of a wide range of personal care products NIVEA markets, including everything from soap, shampoo, and shaving products, to baby care products, deodorant, and sunscreen.

Discussion Questions:1. Does Nivea standardize its brand across the globe or customize it to local markets?

For the most part, Nivea uses a standardized marketing mix. However, the company modifies some details, primarily advertising images and messages, to adapt to local cultures and preferences.

2. Visit NIVEA’s website, www.nivea.com , and tour the sites for several different countries. How does NIVEA market its products differently in different countries? How does the company maintain the consistency of its brand?Student responses will vary based on the sites they visit. Nivea changes small details on each site to cater to local consumers. For example, the models on each site vary to reflect the local culture and heritage. However, the basic information available on each site consistently tells the Nivea story, communicating the brand’s history and positioning.

Teaching Ideas:1. Nivea is a product that has been sold in several countries under the same brand name

with the same core brand elements. Have students generate a list of products that have also been able to do this. What do these products have in common? Then, have them generate a list of products that have customized their brands to local markets. Ask the students to arrive at some general conclusions about which types of brands can be standardized across the globe and which must be customized.

2. In small groups, have students debate the pros and cons of standardized versus adapted marketing mixes.


http://www.nivea.com/

NUDIE

Summary:Nudie, a quirky little company in Australia, makes its own contribution to the fast-growing natural foods market—all-natural fruit juices, fruit crushes, and smoothies that provide a day’s fruit in every bottle. Amidst a sea of all natural products, Nudie relies on a carefully designed program of personal selling and sales promotion to reach customers and encourage them to try its products.

Discussion Questions:1. With a small advertising budget, how is Nudie able to build its brand?

Nudie uses low-cost brand building tactics to support the Nudie brand. This includes sales people representing the brand and creating point-of-sale materials that stores can choose to display in stores where Nudie is sold. Without a lot of money for advertising, Nudie must use any touch point with the consumer and retail trade to communicate its brand image.

2. How does nudie use the sales force to communicate its brand? First, Nudie hires people that it feel personally represent the brand. These are people that are passionate about the product and are fun, honest, and confident. The sales people personally demonstrate many of the traits of the Nudie brand. In addition, the sales people drive cars with the Nudie brand and logo.

3. How does Nudie use point of sales materials to build its brand? Nudie offers an array of promotional materials that stores can put on tables and counters. These materials reflect simple and humorous imagery with consistent colors and consistent messages that support the Nudie brand.

Teaching Ideas:1. Have students reflect on their personal experiences with salespeople and list the

characteristics of the typical salesperson. Compare student responses. Are the images generally positive or negative?

2. Have students select a company and then describe an ideal sales person. How does this sales person reflect and support the company’s brand?


PROCTER & GAMBLE

Summary:Procter & Gamble has one of the world’s largest and strongest brand portfolios, including such familiar brands as Pampers, Tide, Ariel, Always, Pantene, Bounty, Folgers, Pringles, Charmin, Downy, Iams, Crest, Secret, and Olay. Each brand is carefully positioned to target a very specific segment of the market.

Discussion Questions:

1. Describe P&G’s brand hierarchy.P&G is the name of the corporate parent, but it is not a brand that is supported by marketing efforts. Rather, P&G manages a series of brands that are supported independently. For example, Pampers’ brand is distinct from the Tide brand, even though both are P&G products. Even within a product category, P&G has several brands that have distinct brand identies. P&G has several brands of detergent that serve the same core benefit but target different customer segments with different needs and attitudes.

2. How can the Internet be used in brand building?The Internet allows interaction between the consumer and the brand on the consumer’s terms. For example, Pampers customers can access the Pampers Website at any time they wish and read content on parenting that they choose to read. In addition, Websites are far cheaper to deliver to consumers than traditional advertising.

3. How does P&G use its variety of brands to build relationships with the right customers? By segmenting the market and having several detergent brands within each product group, Procter & Gamble has an attractive offering for consumers in all important preference groups. Based on consumer preferences, P&G can target specific groups with additional product offers, building deeper relationships with satisfied customers.

Teaching Ideas:1. Have students list products found in their homes. Ask them to consider what those

products say about them as consumers. How might a marketer use the list to segment and target the students?

2. Ask students to list products that do not appear to be marketed to specific consumer segments. Have them reconsider each product listed and look for more subtle forms of positioning and segmentation. For example, although Coke is mass marketed, its sub-brands (Diet Coke, Sprite, etc) each target a different consumer group.


SNAPPLE

Summary:Snapple is an example of a brand that started as an American success story, lost its way, then re-discovered its image over a period of 20 years. When Snapple took off in the 1980s, it broke into the highly competitive soft drink market. It was the first beverage to challenge Coke and Pepsi by creating a new category known as alternative beverages. The product was revolutionary because it didn’t look like or act like a soda. In fact, the company was able to produce Snapple without preservatives by using glass bottles and a hot-fill production process. The result was a product and a brand that became known as the “Best Stuff on Earth.” Snapple’s image is down to earth, off beat, and fun.

Discussion Questions:1. Snapple was enjoying its position as a number one alternative beverage. What

happened to cause the company’s sales to decline? Why did the brand suffer?In 1994, Quaker Oats bought Snapple for $1.7 billion and modified some core aspects of the product, which resulted in a decrease in sales. In addition to increased competition, Quaker Oats tried to reduce costs by cutting the number of flavors from 50 to 30 and using a warehousing system instead of distributors. The company tried to model Snapple’s product line after Gatorade, one of the company’s other successful products. Unfortunately, all of these changes detracted from the core product and brand. Sales dropped by 8 percent.

The Snapple brand suffered because it was unable to maintain its image as fun and quirky as a product sold by Quaker. By selling through warehouses instead of the existing distributors and reducing the number of flavors, Snapple lost its position in the market as an alternative beverage that is down-to-earth and offbeat.

2. What did Triarc do to rejuvenate Snapple’s image in the marketplace? After purchasing Snapple, Triarc realized it needed to reconnect with the customer. Marketing managers returned to the product’s origins that resulted in Snapple’s success in the 1980s. New flavors were produced and new product lines that translated the core Snapple image were released such as Elements and Whipper Snapple. The distribution network was reinstated.

3. How did Snapple’s use of advertising play a role in the company’s initial success and in its return to market favor?Snapple used an out-of-the-box advertising campaign and adopted its own personality symbols (the Snapple lady and various life-size fruits) to hawk its products both on television and radio. The campaign attracted consumer attention and the product’s attributes completed the “sale.” For its return to popularity, creative marketing tactics were employed to reposition the brand and new youth-oriented products opened up different market segments. All of these efforts successfully turned Snapple around and sales returned to 1980s levels. Cadbury-Schweppes bought Snapple in 2000. Snapple is continuing to keep up with the times


and striving to translate its core brand image into other competitive products with a constant eye on the target markets.

Teaching ideas:

1. Have students think of a brand that has, in their opinion, declined in recent years. Why did that brand decline? Could it have been prevented? If tasked with revitalizing the brand, what would the student do?


STARBUCKS

Summary:Starbucks is more than coffee. It’s a coffee shop experience. The company purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian-style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment, primarily through its company-operated retail stores. Starbucks also creates a welcome environment for its customers based on a mission to establish Starbucks as the premier purveyor of the finest coffee in the world, while maintaining uncompromising principles as it grows. Although the company recognized early on that profitability is essential to future success, it entered the market in 1971, when coffee drinking was on a downturn. Despite those market conditions, Starbucks was launched with the idea of creating satisfied customers every time. Its success is now heralded by market-watchers and its brand is recognized around the world. Starbucks now has over 7,100 locations.

Discussion Questions:1. Starbucks spends very little money on advertising. Given this limitation, how has

Starbucks built its brand?Starbucks recognized that their company not only sells coffee but it also delivers an in-store experience. Vital to this in-store experience is the interaction with the employees, or baristas. By hiring the right employees, compensating them appropriately, and giving them ownership in the firm, the employees become communicators of the brand just as an advertisement would. Starbucks is an experiential brand, and the company uses the in-store experience and word of mouth to build the brand.

2. In the video, the manager conveys that a company owns a brand legally, but the consumer owns the brand in the market. What do you think he means and do you agree?Perhaps this philosophy is the basis for Starbucks’ success, which has as its goal to please every customer every time. Profitability is the result. However, more than seeking fine coffees, Starbucks patrons visit with the idea that they are enjoying an experience as well.

3. How does Starbucks continue to build equity for its brand name?The company has built numerous strategic partnerships, such as those with Barnes & Noble, Hyatt Hotels, and Kraft Foods, which have contributed to its growth and brand equity. Additionally, Starbucks displays expansive social and environmental consciousness through The Starbucks Foundation, which sponsors literacy programs and contributes to community-based organizations.

Teaching Ideas:1. Trademarks and packaging are hallmarks of Starbucks’ brand identity program. Do

you think a logo or a package make a difference to consumers?


The Starbucks logo has come to represent quality, service and value to consumers – both in its retail stores and in the products it markets through other grocery and retail chains. When a consumer sees a trusted logo and packaging, it logically contributes to the final purchase decision. All brands have an identity, but the most powerful ones are those that stand out because they have a distinct experience or personality association in the consumer’s mind. Packaging, of course, is the last chance to grab the consumer’s mind and can make a tremendous difference in the final purchase decision.


STRAWBERRYFROG - BEHIND THE SCENES OF AN ADVERTISING CAMPAIGN

Summary:Asics is a $1.3 billion global sporting goods manufacturer known for its technologically advanced running shoes. Consumer desire for older Asics shoes led the company to realize that it had a product people wanted, and it needed an agency to help manage the brand; enter StrawberryFrog.

StrawberryFrog is one of the hippest new agencies in the advertising world and Onitsuka Tigers are retro sneakers with a real history that appealed to a very specific and hip demographic. The challenge was to find a way to reach the “sneakerhead” demographic without actually selling to them or seeming too obvious. Budgets were a fraction of competitor budgets, so the ongoing campaign focuses on Web sites, independent film projects, cutting edge print campaigns, viral marketing, and innovative promotional pieces. This video examines three of the most successful parts of the overall effort to date: “The Running Fish Gutter,” ”Hero Breath,” and the “Kill Bill” promotion. As a result of its hard work, StrawberryFrog has exceeded Asics’ expectations in Europe.

Discussion Questions:1. How did StrawberryFrog use The Running Fish Gutter film to overcome the

challenge of reaching the “sneakerhead” demographic?The short film successfully blended advertising and entertainment in order to attract the “sneakerhead” demographic turned off by traditional mainstream media. Distributing the message via the film festival circuit allowed the agency to reach the demographic without having to rely on more traditional and more expensive venues, like commercials. The agency also gave the film an online presence, as the “sneakerhead” demographic is extremely Web literate. In the end, approximately nine million people saw the film.

2. What role did public relations play in the success of the “Hero Breath” campaign?StrawberryFrog designed the “Hero Breath” around the 2004 Olympics, designing three innovative promotional pieces that told the story of three different shoes. The agency then sent these promotional pieces to opinion formers and journalists writing about the 2004 Olympics. The buzz surrounding the cans created enormous demand, and the pieces eventually started appearing on eBay. The public relations effort alone won the “Hero Breath” campaign a Silver Lion at Cannes.

3. In your own words, discuss the importance of coincidence and timing in a viral marketing campaign. How did StrawberryFrog turn coincidence into a successful ongoing promotional effort?The story of the Onitsuka Tiger “Kill Bill” promotion is one of happy coincidences; StrawberryFrog and Onitsuka were planning a special edition of the tai-chi shoe. At the same time that Onitsuka was honoring the death of Bruce Lee, a long time Tiger fan, Quentin Tarentino was in pre-production for Kill Bill. Because the Onitsuka Tiger was the brand and provided products for the film, the agency could host film


premieres, capitalizing on the interest generated by the product placement. This led to the agency developing additional promotional pieces to build on those opportunities. Again, students should be aware of the concept of cultural literacy and its importance to advertising and integrated marketing communications.

Teaching Ideas:1. Have students (individually, in pairs, or in small groups) identify other forms of

successful product placement in the movies or television. Have each team explain to the other students what made the placement successful. Next have the students try to identify either a real or fictitious example of product placement when there is not a match between the product and the movie or its audience. What harmful effects could this have on the campaign? The brand? The advertiser? The agency?


WELLBEING

Summary:In 2003, Dan Wales and Matt Lennox opened their first Wellbeing restaurant. Their goal was to offer consumers a healthy alternative to typical fast food options. In only a few years, the chain has expanded to 18 stores and expects to nearly double that number in the next two years.

Discussion Questions:1. What are the intangible elements of Wellbeing’s brand?

Wellbeing serves healthy alternatives to traditional fast food, but the quality of product is not the only element of the company’s brand. The brand also communicates intangible elements such as convenience of buying food at Well-being and recipes that are designed by nutritionists who understand the science of nutrition better than the customer.

2. How does Wellbeing’s store design play a role in its brand building?Wellbeing’s brand must communicate a certain level of trust because the customer needs to feel confident that the store is using the best ingredients and preparing food in a manner that is healthy. With lots of glass and a large window into the kitchen, the store itself communicates a feeling of transparency in the food preparation process. This helps reinforce the trust element of Well-being’s brand.

3. How does pricing play a role in Wellbeing’s brand building?Well-being targets an educated consumer segment that is willing to pay a price premium over traditional fast food restaurants for healthy food. Despire this willingness, convenience and value of core parts of Well-being’s brand so charging the firm charges a somewhat moderate price premium. By charging more, Well-being might be able to profit in the short-term but jeopardize its brand in the long-term.

Teaching Ideas:1. Have students list companies targeting similar consumers in the United States. Next

have students compare the positioning statements of those companies to that of Wellbeing?

2. Ask students to consider how altering the price decisions that Wellbeing has implemented might impact the company’s product and positioning decisions.


WILD PLANET

Summary:Wild Planet markets high quality, nonsexist, nonviolent toys that encourage kids to be imaginative and creative and to explore the world around them. But Wild Planet sells more than just toys. It sells positive play experiences. To better understand those experiences, the company conducts a tremendous amount of consumer research to delve into consumer buyer behavior. Wild Planet even created a Toy Opinion Panel to evaluate current products and develop new product ideas. The panel helps Wild Planet to understand why parents and kids buy the toys they buy.

Discussion Questions:1. Is the Wild Planet brand the company’s only brand? If not, how are brands organized

in a brand hierarchy?Wild Planet has an overall corporate brand that communicates positive play experiences. This corporate brand has several product brands underneath it that may or may not link directly to the Wild Planet brand. For example, the “Girls Living in Style” or GLS is a brand that falls within Wild Planet’s family of toy brands.

2. What customer segments is Wild Planet targeting and how does this affect its brand management?Wild Planet targets kids, both boys and girls, and parents, all of which behave quite differently.. Thus, it must have a brand that has positive associates with all of these target segments. How these segments judge the brand (based on quality, credibility, consideration, and superiority) will be vastly different? For example, to a kid, the brand must communicate fine and exciting. To a parent, the brand must communicate that the toys are educational.

3. The video talks a lot about product research with target customers. What types of research should the company do to better understand the customers’ perceptions of the Wild Planet brand?On the qualitative side, Wild Planet can test what free associations customers have with the brand. Also, Wild Planet can ask consumers about their perceptions of Wild Planet’s brand personality and values. On the quantitative side, Wild Planet can test such factors as awareness, brand image based on scaling considerations, brand responses and purchase intentions, and brand relationships such as loyalty and substitutability.

Teaching Ideas:1. Have students compare and contrast Wild Planet’s brand with other well known toy

brands such as Hasbro and Mattel? How are they similar and how are they different. How has Wild Planet used its products and brand to differentiate itself from these larger companies?


keller 3e video guide

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