strategic brand management (2013)

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Strategic BrandManagement

A product is anything that is potentially valued by a target market for the benefits or satisfaction it provides, including objects, services, organizations, places, people, and ideas

STRATEGIC BRAND MANAGEMENT

A brand is a name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers.

American Marketing Association

For Buyer, Brand can Reduce …

customer search costs

the social and psychological

risks

the buyer’s perceived

risk

FOR SELLERS, BRANDS CAN FACILITATE:

repeat purchases the introduction of new products, promotional effectivenesspremium pricing market segmentationbrand loyalty

Brand Management Challenges

Intense Price and Other Competitive Pressures

Fragmentation of Markets and Media

Complex Brand Strategies and Relationships

Bias Against Innovation

Pressure to Invest Elsewhere

Short-Term Pressures

TM 5-1

Responsibility for Managing Products

Product/Brand ManagementProduct Group/Marketing ManagementProduct Portfolio Management

Strategic Brand Management

Brand Identity Strategy

Brand Strategy Over Time

Managing the Brand Portfolio

Leveraging the Brand

BRAND EQUITY

MANAGEMENT

STRATEGIC BRAND

ANALYSIS

STRATEGIC BRAND ANALYSIS

Analyses Product Product Line Portfolio of Product Lines

□ Market and Customer

□ Competition

□ Brand(s)

Tracking Brand PerformancePerformance Objectives

Select Method(s) forEvaluation

Identify Problem Products

Decide How to Resolve the Problem

Analyzing Brand

Performance

Product life cycleanalysis

Financialanalysis

Product performance

analysis

Researchstudies Standardized

informationservices

Brandpositioning

analysis

Product Life Cycle Analysis

Determining the length and rate of change of the PLC Identifying the current PLC stage and selecting the

product strategy that corresponds to that stage Anticipating threats and finding opportunities for

altering and extending the PLC

• Product Performance Analysis Management’s performance criteria Strengths and weaknesses relative to portfolio

• Brand Positioning Analysis Perceptual maps for brand comparison Buyer preferences

• Other Product Analysis Methods Information Services Research studies Financial analysis

BRAND EQUITY

Company/Customer Value of Brand Name and

Symbol of a Product

Determined by the brand’s set of

assets (and liabilities)

BRAND IDENTITY STRATEGY

Four Brand Identity PerspectivesProductOrganizationPersonSymbol

Lineof

ProductsPrivate

Branding

CorporateBranding

BRAND FOCUS

CombinationBranding

MANAGING BRAND STRATEGY

Proactive efforts should be devoted to managing each

brand over time.

Strategies for Improving Product Performance

Product lineStrategy

Addnew

product(s)

Costreduction

Productimprovement Alter

marketingstrategy

Eliminatespecific

product(s)

MANAGING THE BRAND PORTFOLIO

LeverageCommonalities to Generate Synergy

Allocate Resources

Reduce Brand

Identity Damage

Facilitate Change and Adaptation

Achieve Clarity of Product Offerings

BRAND PORTFOLIO OBJECTIVES

Strategies for Brand Strength

Adding a New Line

Brand Building Strategies

Fighter Brands

Brand Revitalization

Removing Orphan Brands

BRAND EXTENSION

LINE EXTENSION

Extensions of the brand name to other product categories

Minor variants of a single product are marketed under the same brand name

BRAND LEVERAGING STRATEGY

LINE EXTENSIONS BRAND EXTENSIONS

HorizontalExtension

VerticalExtension

AnotherProductClass

RangeBrand

Co-Branding

Up fromCore

Brand

Down fromCore

Brand

LEVERAGING ALTERNATIVES

BRAND LEVERAGING IN UPSCALE AND VALUE MARKETS

Vertical Brand Extensions*Core

BrandNew

Up-Market Brand

NewDown-Market

Brand

CoreBrand

* ONE OF THE MOST DIFFICULT BRAND PORTFOLIO CHALLENGES

BRAND EXTENSION DECISIONS

Identify product categories for

which the product fits and adds value.

Identify related product category

opportunities

Evaluate each

category

Select the most promising extension concept

Develop a viable Brand

Strategy

CO-BRANDINGCo-branding (dual branding) involves two or more established brands making a joint offer of their product brands —

BRAND LEVERAGING EVALUATION CRITERIA

Brand Relevance/Differentiation

Capabilities/Perceived Value Match

Market/Segment Opportunity

Cannibalization Risks

Potential for Core Brand Damage

Clarity of Product Offerings

Estimated Financial Performance

Brand Equity Impact

SEVEN DEADLY SINS OF BRAND MANAGEMENT*

Failure to fully understand the meaning of the brand. Failure to live up to the brand promise. Failure to adequately support the brand. Failure to be patient with the brand. Failure to adequately control the brand. Failure to properly balance consistency with the brand. Failure to understand the complexity of brand equity