Download - Global Brand Management
PSU - 2006 - Global Brand Management - Alain Hutinel.
Welcome to GLOBAL BRAND MANAGEMENT
• To-day
Goals– How we are going to work
(syllabus)– Some rules
Part I : Investigating the Brand « power »
PSU - 2006 - Global Brand Management - Alain Hutinel.
Me … Alain Hutinel
Education– ESSEC– MBA Keller Graduate School of Business (Indiana
University)
Experience20 years in FMCG Marketing, Colgate Palmolive & Quaker Oats2 years MD of an IT Network Cy15 years of Consulting and Teaching
Major interests…. Teaching internationallyMarketing Communications and Brand Management…. Discovering new ways of marketing
Office : 260CTu, W & Th.503-725-3732
PSU - 2006 - Global Brand Management - Alain Hutinel.
You… Special Topics/ Interest in Brands … Specific project Business actual situation ……..
> let’s talk and imagine
Your role :to build your own brand model
so as to better anticipate what you think will happen
PSU - 2006 - Global Brand Management - Alain Hutinel.
Class materials
Course Slides + on PSU/SBA - Faculty and Staff - Alain Hutinel website & course e-mail (to-morrow)
CD-ROMReference book : Lane Keller,
« Strategic Brand Management »• Also : « Brand Portfolio
Management » by D.A. Aaker
PSU - 2006 - Global Brand Management - Alain Hutinel.
(some) Brand Management Websites www.pwcglobal.com/fr/fra PriceWaterhouse www.tns.com Taylor Nelson Sofres, Etudes, Panels, Piges
…. www.esomar.nl ESOMAR Recherche MArketing www.brandweek.com US magazine www.brandchannel.com Interbrand “The” site on Branding. www.brandfinance.com www.milwardbrown.com Brand research and survey company www.future.sri.com Research International. www.intelliquest.com Millward Brown.Adverising www.accenture.com Accenture www.ipa.com UK Institute of Professional Advertisers www.prodimarques.com French Brand Association www.labelmark.com French consultant www.nomen.com French consultant for Brand Names search www.mckinseyquarterly.com McKinsey www.exmarketing.com Consultants, Bern Schmitt (Columbia U.) www.bec-institute.com HighCo brand Institute partly in English http://www.cobranding.com co-branding offers www.globalbrand.org
PSU - 2006 - Global Brand Management - Alain Hutinel.
What will be evaluated
Importance vs CompletenessCapacity to judge and build own opinion
(managerial aptitudes) Capacity to anticipate and innovate (d°)Capacity to evaluate quality of marketing
activities (d°)
PSU - 2006 - Global Brand Management - Alain Hutinel.
YOUR ROLES AND RESPONSIBILITIES
1. To build your own brand model 2. To anticipate what you think
should happen3. Individually, to do the required
homework and participate in class debate
4. To actively contribute to group work
PSU - 2006 - Global Brand Management - Alain Hutinel.
Requirements and grading
Readings as directed3 individual essays from readings 3 individual cases (powerpoint format only)1 group brand audit & project
PSU - 2006 - Global Brand Management - Alain Hutinel.
Typical Reading/Essay format The most important/new ideas/concepts retained by the writer(s) Critique/discussion on these ideas, on methodology, argumentation etc
…. Give your opinion Say what might happen 5 to 10 years from now Provoque class debate
How you will apply in your brand audit
10 minutes = no more than 6/7 light slides All work in powerpoint format
PSU - 2006 - Global Brand Management - Alain Hutinel.
Course main Topics
Brand strategic roleThe Brand systemValuating the BrandBrand EquityBrand Identity
Managing the Brand Communicative scope
Managing Brand Architecture
Brand portfolio IssuesCross-cultural Branding
PSU - 2006 - Global Brand Management - Alain Hutinel.
TO-DAYInvestigating,
understanding the Brand Importance to the firm
Defining the BrandThe Brand SystemDefining the Brand rolesBrand Power and Value
PSU - 2006 - Global Brand Management - Alain Hutinel.
12
« Ultimately, Brands are all about trust …
… the reason consumers flock to some brands and ignore others is that behind the brand
stands an unspoken promise of value. That is why brands are becoming even more
important drivers of growth. That is also why Unilever wants Knorr, Skippy, Hellmann’s,
SlimFast and Ben & Jerry on its plate. »
Mukul Pandya, WSJ.
PSU - 2006 - Global Brand Management - Alain Hutinel.
Key trends affecting brand management … &
marketing ! Consumption, societal & cultural multi-fragmentation & globalisition
Less loyal / more « intelligent (?) » buyer
Self value-building consumption
Search for emotions Multiplication of offers & chanels
Interactive marketing technologies Markets saturation Multiplication of
touchpoints/contacts Loss of credibility of traditional
media contacts
PSU - 2006 - Global Brand Management - Alain Hutinel.
From USP to HSP
USP = Unique Selling Proposition ESP = Emotional Selling Proposition OSP = Organizational Selling Proposition BSP = Brand Selling Proposition MSP= Me Selling Proposition HSP =Holistic Selling Proposition
(Martin Lindstrom)
PSU - 2006 - Global Brand Management - Alain Hutinel.
A Brand builds its Own world
And that is a fantastic power !
PSU - 2006 - Global Brand Management - Alain Hutinel.
16
In this brand (!) new world, What IS a Brand
and What DOES a Brand do?
?
PSU - 2006 - Global Brand Management - Alain Hutinel.
Think of Brands in your own life
1 - Think of how you became aware of them, why you bought them, why you prefer them, how you feel about them ...
2 - List them as they come to your mind
3 - Chose one brand you are very familiar with :. What does this Brand do for you?. What does it MEAN to you?. How do you relate to it ? …
4 – Main characteristics of a world without Brands ?
PSU - 2006 - Global Brand Management - Alain Hutinel.
“What is the best …”
Who makes the best …. Automobile ?
………Do you own one ?Have you ever owned one ?Have you ever driven one ?Do you know anybody who owns one
?How do you know ….. It is the best ?
PSU - 2006 - Global Brand Management - Alain Hutinel.
Brand is an experienceA brand is essentially a container for a
costumer’s complete experience with the offer and the company. (Sergio Zyman)
PSU - 2006 - Global Brand Management - Alain Hutinel.
PSU - 2006 - Global Brand Management - Alain Hutinel.
What is a Brand (shortcut) ?
Attributes Benefits Values
Culture
User
Personality
PSU - 2006 - Global Brand Management - Alain Hutinel.
The Brand as an Open System.
.Scope.Attributes
.Uses.Quality/
Value.Functional
Benefits
Organization’s associations
Personality
SymbolsOrigin
User Imagery
Relationships withcustomers
Self-expressive benefits
Emotional benefits
(Core) Offer(Tangible Products & Services)
Codes/Tone
Competition
Skills
Name
CorporationEconomy …
Chanels, contacts…
TribesCulturesGroups …
PSU - 2006 - Global Brand Management - Alain Hutinel.
This Brand System interacts AS ...
1) .. A SOCIO-ECONOMIC AGENT
2) .. A CORPORATE ASSET
3) .. A STRATEGIC MARKETING TOOL
4) .. A COMMUNICATING & SELLING AGENT
PSU - 2006 - Global Brand Management - Alain Hutinel.
THE BRAND AS A SOCIO-ECONOMIC AGENT
• PART OF EACH INDIVIDUAL’S AND SOCIETAL GROUPS ’ SET OF REFERENCES
• A POWERFUL SOCIAL DRIVER• A GLOBAL CIMENT• A VALUE ADDING ECONOMIC AGENT
PSU - 2006 - Global Brand Management - Alain Hutinel.
Coca Cola 2002.jpg
PSU - 2006 - Global Brand Management - Alain Hutinel.
Brand Strategic Role
Brand Equity
Cash flowbooster
ConsumerResponseBooster
PSU - 2006 - Global Brand Management - Alain Hutinel.
PSU - 2006 - Global Brand Management - Alain Hutinel.
THE BRAND AS A CORPORATE ASSET
• A PROTECTED PROPERTY (owner's right to use)
• BOOK VALUE, GOODWILL. ASSET that can be sold and bought
• MARKETING « NON TANGIBLE » ASSETprecisely measurable and
valuable (when brand is on sale) :
STRENGTH , LEADERSHIP & EQUITY, ie capacity to justify price.
PSU - 2006 - Global Brand Management - Alain Hutinel.
Brand Asset Value
Source : K.L.Keller
PSU - 2006 - Global Brand Management - Alain Hutinel.
BRAND EQUITYas a Percent of Firm Tangible Assets
Industry Brand Equity
Apparel 61
Tobacco 46
Food products 37 Chemicals 34
Electric machinery 22
Transportation equip. 20
Primary metals 1
Stone, glass, and clay 0
PSU - 2006 - Global Brand Management - Alain Hutinel.
Brand (Market) Performance Valuation
DDB Pricing StudiesLandor Power IndexInterbrand Valuation modelY&R Brandasset ValuatorIntangible Value ValuatorSometimes stock market value
PSU - 2006 - Global Brand Management - Alain Hutinel.
The Landor Power Index
Power = strength2 synthetic measures
Awareness Esteem«Share of Mind» idea (cf. Share
of Market Share of Voice, Share of Requirements ....)
Most influencing factor : brand perceived quality
need time
PSU - 2006 - Global Brand Management - Alain Hutinel.
Interbrand BRAND VALUE Attributes
Leadership (25%)Market share, Awareness, Positioning,
Competitor ProfileStability (15 %)
Longevity Coherence Consistency,
brand Equity, risksMarket (10 %)
What market, Volatility size
Market dynamics BarriersInternationality (25%)
Trend (10 %)LT erformance, Projected
performance, Sensibility of Plans, competition reactivity
Support (10 %)Consistency of
message and spendings, Above/below the line Brand franchise
Protection (5%)Trademark
registration/registrability common law,
litigations/disputes
PSU - 2006 - Global Brand Management - Alain Hutinel.
Interbrand Ranking and Ratio of Brand value to Firm Market Value
SM % BRank $ bns Rank $ bns Rank $ bns Rank $ bns $ bns /SM RANK $bns RANK $bns
1 Coca-Cola 39 Coca-Cola84 Coca-Cola 69 Coca-Cola 70 138 51 Coca-Cola 71 Coca-Cola 672 Marlboro 39 Microsoft 57 Microsoft 65 Microsoft 64 276 23 Microsoft 65 Microsoft 613 IBM 17 IBM 44 IBM 53 IBM 51 138 37 IBM 52 IBM 544 Motorola 15 GE 34 GE 42 GE 41 309 13 GE 42 GE 445 HP 13 Ford 32 Nokia 35 Intel 31 185 17 Intel 31 Intel 336 Microsoft 12 Disney 32 Intel 35 Nokia 30 68 44 Nokia 29 Disney 277 Kodak 12 Intel 30 Disney 33 Disney 29 47 62 Disney 28 McDonald's 258 Budweiser 11 McDonald's26 Ford 30 McDonald's 26 38 68 McDonalds 25 Nokia 249 Kellogg's 11 AT&T 24 McDonald's 25 Marlboro 24 Marlboro 22 Toyota 23
10 Nescafé 10 Marlboro 21 AT&T 23 Mercedes 21 Mercedes 21 Marlboro 2211 Intel 10 Nokia 21 Marlboro 22 Ford 20 32 63 Toyota 21 Mercedes 2112 Gillette 10 Mercedes 18 Mercedes 22 Toyota 20 100 20 HP 20 HP 2113 Pepsi 8 Nescafé 18 Citibank 19 Citibank 18 223 8 Citibank 19 Citibank 2014 GE 7 HP 17 Toyota 19 HP 17 58 29 Ford 17 Amex 1815 Levi's 7 Gillette 16 HP 18 Amex 16 57 28 Amex 17 Gillette 1716 Frito-Lay 7 Kodak 15 Cisco 17 Cisco 16 116 14 Gillette 16 Cisco 1617 Compaq 7 Amex 17 AT&T 16 43 37 Cisco 16 BMW 1618 Bacardi 7 Gillette 15 Honda 15 42 36 Honda 16 Honda 1519 Campbells 7 Merryll Lynch 15 Gillette 15 38 39 BMW 15 Ford 1420 Pampers 6 BMW 11 Sony 15 BMW 14 29 48 Sony 13 Sony 1321 Honda 15 Sony 14 53 26 Nescafe 12 Samsung 1222 BMW 14 Nescafe 13 Budweiser 12 pepsi 1223 Nescafé 13 Oracle 12 44 27 Pepsi 12 Nescafe 1224 Compaq 12 Budweiser 11 45 24 Oracle 11 Budweiser 1225 Oracle 12 Merrill Lynch 11 35 31 Samsung 11 Dell 1226 Budweiser 11 Morgan St. 11 50 22 Morgan St. 11 Merrill Lynch 11.527 Kodak 11 Compaq 10 Merrill lynch 11 Morgan St. 11.528 Merck 10 pfizer 10 217 5 Pfizer 11 Oracle 1129 Nike 8 Nintendo 9 J.P. Morgan 10 72 14 Dell 10 Pfizer 10.630 Pfizer 9 Kodak 10 10 100 Merck 9 J.P. Morgan 1031 Gap 9 Dell 9 70 13 JPMorgan 9 Nike 9.332 Dell 8 Nintendo 9 20 45 nintendo 8 Merck 8.833 Golman S. 8 Mercx 9 130 7 Nike 8 HSBC 8.734 Nike 8 Samsung 8 Kodak 8 SAP 8.335 VW 7 Nike 8 SAP 8 Canon 8.136 Ericsson 7 Gap 7 13 54 Gap 8 kellogg's 837 Apple 4 Heinz 7 Heinz 7 HSBC 8 Goldman S. 838 Levi's 7 VW 7 21 33 Kellogg's 7 Gap 7.939 Kellog's 7 Goldman S. 7 36 19 Canon 7 Siemens 7.540 MTV 7 Kellog's 7 15 47 Heinz 7 Ikea 7.241 Canon 7 Louis Vui. 7 26 27 Goldman S. 7 HD 7.142 Samsung 6 SAP 7 33 21 VW 7 Heinz 743 SAP 6 Canon 7 34 21 Ikea 7 Apple 6.944 Ikea 4 Pepsi 6 Ikea 7 HD 7 Louis Vui. 6.645 Xerox 6 Pepsi 6 92 7 Louis Vui. 7 UBS 6.546 Ikea 6 HD 6 16 38 MTV 6 Nintendo 6.547 Pizza Hut 6 MTV 6 L'Oreal 6 MTV 6.548 HD 6 Pizza Hut 6 Xerox 6 VW 6.449 Apple 5 KFC 5 KFC 6 L'Oreal 5.950 Gucci 5 Apple 5 Apple 6 Accenture 5.851 KFC 5 Xerox 5 34 #### Pizza Hut 5 Xerox 5.752 Ralph Lauren2 Gucci 5 24 #### Accenture 5 Wrigley's 5.453 Accenture 5 Gucci 5 Kodak 5.254 L'Oreal 5 48 10 Kleenex 5 KFC 5.155 Kleenex 5 Wrigleys 5 Pizza Hut 556 Sun 5 22 23 Colgate 5 Colgate 557 Wrigley's 5 Avon 5 Kleenex 4.9
2003 20042002Interbrand value1995 1999 2001
MB
Interb.
PSU - 2006 - Global Brand Management - Alain Hutinel.
Monash University MBA - January 2002 - Prof. A. Hutinel 26
Emerging potential
Leadership
New/ unfocused Eroding Potential
Brand Stature
Brand Strength
Differenciation Relevance EsteemKnowledge
D R E K D R E K
DR E K D R E K
Y&R ’s « Brandasset Valuator » PowerGrid
PSU - 2006 - Global Brand Management - Alain Hutinel.
Heinz Ketchup - 2000
PSU - 2006 - Global Brand Management - Alain Hutinel.
THE BRAND AS A KEY STRATEGIC MARKETING TOOL
* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE Adaptable to changing environments and technologies
* SUPPORT OF LONG-TERM TIES WITH PEOPLE
* ALLOWS LOWER COST for NEW ENTRIES
* UNIQUE SPOKESMAN TO ALL PUBLICS
* JUSTIFIES HIGHER PRICE & MARGINS
PSU - 2006 - Global Brand Management - Alain Hutinel.
The Brand Value Chain
Value StagesMarketing
programsCustomer
MindsetMarket
PerformanceShareholder
Value
Value MultipliersPrograms QualityMarket Place &
Competition Conditions
Investor Sentiment
PSU - 2006 - Global Brand Management - Alain Hutinel.
The Leading Brands: 1925 and 1985 Product Leading Brand 1925 Current Position 1985 Bacon Swift Leader Batteries EvereadyLeaderBiscuits Nabisco LeaderBreakfast cereal Kellogg LeaderCanned fruit Del Monte LeaderChewing gum Wrigley LeaderChocolates Hershey No. 2Flour Gold Medal LeaderMint candies Life Savers LeaderPaint Sherwin-Williams LeaderPipe tobacco Prince Albert LeaderRazors Gillette LeaderSewing machines Singer LeaderShirts Manhattan No. 5Shortening Crisco Leader Soap Ivory Leader Soft drinks Coca-Cola Leader Soup Campbell Leader Tea Lipton Leader Tires Goodyear Leader Toothpaste Colgate No. 2
PSU - 2006 - Global Brand Management - Alain Hutinel.
RATE OF LOYALTYCAPACITY T O BUILD IT
LEVEL AND SCOPE OFAW ARENESS
LEVEL & DIST INCT IVENESSOF PERCEIVED QUALITY
M EASURED ST RENGT H OFIM AGE AND IDENT ITY
UNIQUENESS OF PERCEIVEDPOSIT IONNING
PREFERENCE POW EROF PERCEIVED BENEFITS
BRAND EQUIT Y & MARKETING ASSETS
PSU - 2006 - Global Brand Management - Alain Hutinel.
Building Brand Equity
Brand Equity
(Name & Symbol)
Value To Customer• Info Processing• Confidence in Buying• Use Satisfaction
Value To Firm• Helps Programs• Brand Loyalty• Prices• Brand Extensions• Trade Leverage• Competitive Advantage
NameAwareness
Perceived Quality
BrandAssociations
OtherBrandAssetsBrand
Loyalty
Preference
PSU - 2006 - Global Brand Management - Alain Hutinel.
P & G - Mr Propre Mr Clean
PSU - 2006 - Global Brand Management - Alain Hutinel.
THE BRAND AS A COMMUNICATING & SELLING AGENT
* A RELATIONSHIP ACTOR/BUILDER
* AN INFLUENCER
* IT GIVES MEANINGS TO PRODUCTS/SERVICES ...
* ... AND A CREATOR OF « NEW » WORLDS
PSU - 2006 - Global Brand Management - Alain Hutinel.
The best Performances last longest.
PSU - 2006 - Global Brand Management - Alain Hutinel.
From Traditional Marketing Functions of the Brand Name
…Identification
Expresses the offer and is easily seen
PracticalitySaves times/energy thru repeat purchase & renewed satisfaction
Guarantee of qualityHas reputation
PSU - 2006 - Global Brand Management - Alain Hutinel.
… to a powerful societal system that … sells
… ie : exerts influences in the market
place changes consumers’ wants and
needs sets ideals and standards helps/facilitates choice provides purchase reassurance reduces after-choice dissonance
……
PSU - 2006 - Global Brand Management - Alain Hutinel.
….
gives meanings and identity to what we use & buy
helps us build our self-identity provides a symbolic language
through which we can express ourselves in society and be recognized and understood by others
creates a longlasting relationship with « consumers », at least with customers
PSU - 2006 - Global Brand Management - Alain Hutinel.
So, a modern brand is
A « persona » that overlays and includes the physical products/services
the sum of fundamental values and attributes ascribed to it by people
the entity that the consumers construct from the products’ meanings, symbols and images that they perceive as defining the brand.
PSU - 2006 - Global Brand Management - Alain Hutinel.
Evian, approved spring of youth for your body.
Evian Water brings health to all growing bodies
PSU - 2006 - Global Brand Management - Alain Hutinel.
PSU - 2006 - Global Brand Management - Alain Hutinel.
PSU - 2006 - Global Brand Management - Alain Hutinel.
US - Evian. l’Original. Approved by your body as a source of youth.
PSU - 2006 - Global Brand Management - Alain Hutinel.
PSU - 2006 - Global Brand Management - Alain Hutinel.
Many different types of brands ?
B2B B2C Web Trade Local Regional National International Worlwide (meta)
CorporateCommercialNon-business (?)
– Countries – Official bodies– Charity org.– Politics/Polticians– …
PSU - 2006 - Global Brand Management - Alain Hutinel.
Nestle Branding Tree7500 Local Brands
– Solis, Texicana, Rocky140 Regional Brands
– Contadina, Stouffers, Herta, Vittel
45 Worldwide strategic Brands– KitKat, Polo, Baci, After Eight, Coffee-Mate
10 worldwide Corporate Brands– Nestle, Carnation, Maggi, Buitoni, Perrier
PSU - 2006 - Global Brand Management - Alain Hutinel.
Nestlé Branding Tree
PSU - 2006 - Global Brand Management - Alain Hutinel.
SARA LEE BRANDS25,000 brands registered worldwide, 80% in
use.Sara Lee is eliminating R&D & Production to
focus on brand development
GLOBAL
REGINAL
LOCAL BRANDS
Sara LeeBrandHierarchy
PSU - 2006 - Global Brand Management - Alain Hutinel.
From Traditional to Experiential Branding
FromBrands as
identifiersNames, logos,
slogans build awareness and image
TO Brands as experience
providers Names, logos, slogans,
events, customer contacts which build sensory, affective, creative relations and ways of being (lifestyles) with the brands