how-our- likes-helped-trump-win - lumsa.it · process of identity-oriented brand management 1. ......

Dr. Carola de Teffé 1

TASK

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Read this article and find two theories described in the course, which can be

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Process of identity-oriented brand management

1. Strategic brand management 2. Operational brand management

3. Brand controlling

Situation analysis

• Demanders' needs

• Actual positioning

• Brand touch points

• Strengths/weaknesses

of competitors

• Distribution analysis

• Legal framework

• Social framework

• …

Brand identity of

corporate brand

• Provenance

• Competency

• Type of services

• Vision

• Values

• Personality

Brand architecture

Brand identity of the

other brands of a

company

Brand evolution

Company and brand

goals Brand organisation

Brand reporting Brand success measurement

Implementation of the brand

identity in brand services


identity in brand

communication

Se

cu

rin

g th

e w

ho

len

ess o

f th

e

bra

nd

id

en

tity

th

rou

gh

bra

nd

in

teg

rati

on

Securing the brand identity through

legal trademark protection


identity in brand pricing


identity in brand distribution


Brand

Architectur

(Brand Portfolios) Brand

Evolution

Strategies Brand

Decisions

(Implementation of the

portfolio logic in specific

behavioral plans for each

brand) (Strategically guided

decisions on the

marketing mix)

1. Strategic Brand Management

2. Operational Brand Management

3. Brand Controlling


Brand architectur / brand hierachy

Brand architectur/brand hierachy is the systematization of the different brands of a

company within a hierarchical framework and analysis of their interrelationships.

Corporate brand:

anchor for organizational associations

express the culture and values of an organization

suppose to create a high degree of credibility for the product brands

Product brands:

anchoring mainly product-specific associations in the psyche of consumers


Strategic roles of a brand

Flagship Brand (A-Brand)

- A company's core product or service which is most recognizable by

the public and embodies the expertise, values and product line of the

business, brand leadership (Persil/Henkel, Nike aethletic shoes)

Flanker- / Fighter Brands (B-Brands)

- Used to defend important profitable brands in the portfolio

- especially against price pressure from other manufacturer brands and

above all private labels (Spee/Henkel, HUGO/Boss, Max

weekend/Max Mara)

Cash Cow Brands (C-Brands)

- are characterized by stagnating slightly declining sales,

- have been established for many years,

- thanks to existing brand profile and loyal customers they keep

themselves in the profitability zone although they receive little

marketing support (Lux soap/Unilvever, “Der weiße Riese “/Henkel)


Volkswagen Group - brand hierarchy

Source: Meffert, H./ Burmann, C./ Kirchgeorg, M., 2012, S. 372.

Corporate Brand

Company

Brand

Product

Brand

Sub

Brand


Aaker/Joachimsthaler suggest the following systematisation of Brand Relationship

Spectrum (without Subbrand)

Company Level Branded House Endorsed Brands House of Brands

Corporate

Level

Divisional

Level

Product

Level

Source: Meffert, H./ Burmann, C./ Koers, M., 2013, S. 171.


Three main Brand Naming Architectures (vertical dimension)


Single-brand strategy

Corporate Brand

...

Product 1 Product 2 Product n ...

Brand 2

Product 3

Brand 3 Brand n Brand 1


Branded House

Corporate Brand

Product 1 Product n ...

Brand

Product 2 Product 3


Brand family strategy (House of Brands)

Corporate Brand

Product 1a

Brand Brand

Product Group 1

Product n Product 2a Product 2b

Deo Creme After

Shave

...

tesa Film tesa Krepp

Product 1b Product 1c

Brand family: several related products under one brand name without reference to the corporate brand

Product Group 2


Horizontal dimension

Individual product brands

Each product stands on its own, without any visible connection with the corporate

brand

Brands promoted as individual product brands have to be strong enough to find their

own place on the market, without falling back on the strenghts of their corporate brand

Are more versatile and easier to keep promoting, in case they are sold to another

corporate entity

Multi-brand strategy

As part of a multi-brand strategy, a company manages at least two brands in the same

product area in parallel.

Particularly when dealing with larger and heterogeneous market segments a multi-

brand strategy makes sense


Multi Brand Single Brand

Feature • Parallel management of at least two

brands focused on the overall market in

each product area

• Management of each product under one brand

Chance • Retaining potential brand changers

through product differentiation

• Increased barriers to market entry for

competitor brands thanks to wider shelf

space coverage

• Protection of other products from price

wars through the introduction of "battle

brands".

• Targeted addressing of individual customer

segments

• Specific brand differentiation through optimal

coordination of requirement needs

• Building an unmistakable/unique product

image

• Hardly any risk of negative effects on other

brands

• Reduced need to coordinate the different

effects of market share and cost digression

Risk • Suboptimal use of company financial and

human resources

• Cannibalisation of own monobrand by

mutual substitution of market shares

• Allocation of brand costs to one product only

• Insufficient amortisation of the costs incurred

with short service life of each individual brand

• Trend of the brand name to describe the

product type and loss of the differentiating

brand personality

• Lack of support for the product brand by

adjacent brands

Main re-

quirements

• Existence of financial strength and

management know-how to a sufficient

extent.

• Credible brand differentiation

• Possibility of building up an independent brand

personality

Source: Meffert, H./ Burmann, C./ Koers, M., 2013, S. 177.


Brand evolution strategy

A brand evolution strategy is future-oriented, it has a dynamic perspective. Not a

portfolio is considered, but a singular analysis of each individual brand

1. Brand consolidation: Deciding to deduct resources from individual brands in order

to use them more efficiently for other purposes

- Immediate elimination

- Gradual withdrawal (skimming or migration strategy)

- Concentration

2. Brand expansion strategy

- Geographic expansion

- Brand extension

Examples for Brand Migration


Bra

nd

newold

old

ne

w

Line Extension

Flanker

(Multibranding)

New Brand

Camel Boots

Nivea-Deo

Mercedes B-Klasse,

Jever Light

Lexus (Toyota)

Teh Botol SosroPersil, Surf

Brand Stretch/

Extension

Product Category

Strategies for Brand extensions (Tauber)


Brand expansion strategy

Line extension:

The number of products and services offered under one brand within the

product category processed so far has increased.

Advantage: fast and cost-effective creation of an image for the new product

Classic Brand Stretch: offer of technically-functionally similar services

(e.g. Nivea Creme Nivea Milk, Milka chocolate bar products such as

Milka Montelino, I love Milka, Maps M-Joy

- Trading up or tading down HUGO by Boss, Max weekend by Max Mara

- Aims to increase sales through more intensive product use by existing

customers or by opening up new customer segments


Brand expansion strategy

Brand extension:

An existing brand is transferred to products of another product group, in

company practice transfers to completely different products (from car brand

to sunglasses).

- to make more intensive use of existing positive brand perception by

consumers by transferring it to other product lines

- Customers can cognitively simplify purchase decisions by transferring

positive experiences from the source product of the corresponding brand

to the transfer product

- The most important success factor is the affinity of the images from the

initial brand to the new product

Multi-branding/Flanker

Introduce further brands in addition to an existing brand, to attract

customers who have hardly been reached by the existing brand so far.

There is a risk of cannibalisation of the original brand, especially if the

brands are sold through the same distribution channels


Advantages:

• Exploit existing brand values

• Exploit existing customer base

• Provides new entry points to Brand

• Scale benefits,

• Makes mother brand more powerful

• Leverage in Channels

Disadvantages:

• Cannibalisation

• Dilution

• Confusion

• Risk to mother brand

• Coordination effort

Advantages and disadvantages of Brand Strechting


Co Branding

Two or more brands appear together in the product, the cooperation is visible for

customers. They create a common bundle of services through the cooperation of the

brands, nevertheless are still independent

Chances:

Avoidance of high initial investments for new brands

Rapidly familiar

Confidence bonus

Mutual image transfer

Risks:

Lack of positioning freedom

High coordination needs

Diffuse brand identity

Danger of negative image transfers


Process of identity-oriented brand management

1. Strategic brand management 2. Operational brand management


Situation analysis

• Demanders' needs

• Actual positioning

• Brand touch points

• Strengths/weaknesses

of competitors

• Distribution analysis

• Legal framework

• Social framework

• …

Brand identity of

corporate brand

• Provenance

• Competency

• Type of services

• Vision

• Values

• Personality

Brand architecture

Brand identity of the

other brands of a

company

Brand evolution

Company and brand

goals Brand organisation

Brand reporting Brand success measurement


identity in brand services


identity in brand

communication

Se

cu

rin

g th

e w

ho

len

ess o

f th

e

bra

nd

id

en

tity

th

rou

gh

bra

nd

in

teg

rati

on

Securing the brand identity through

legal trademark protection


identity in brand pricing


identity in brand distribution


Brand organisation

• Here the organizational anchoring of a brand in the company is determined

• Definition of the necessary structures, processes and information- and

incentive systems

• The brand identity goes back to the decisions of all persons involved in the

creation of the brand

• In addition to the company management and employees, this includes all

persons in the sales channels as well as customer service personnel.

• Business processes must be structured in such a way that they promote

efficient collaboration among employees and support the brand identity.


Brand organisation

• Anchoring brand management in management (negative effect of high

fluctuation of young brand managers)

• Service orientation of a brand (service mentality of the employees influences

the service quality perceived by the customer, signals genuine appreciation

for the customer)

• On the one hand, the uniqueness of each brand -> organisational unit as the

brand owner must be managed as independently as possible; on the other

hand, the greatest possible exploitation of synergies between the corporate

divisions and brands must be ensured


1. Implementation of the brand identity in brand services (includes the technical-

qualitative design of the products and/or services but also the proof of real problem-

solving ability in the use, consumption and disposal phase)

Determined in the long term by the innovative ability of the institution that supports the

brand (e.g. Audi: through constant innovation, positioning "Ahead through technology"

on the automotive market underpinned technologically and thus credible)

Innovative strength is also reflected in the development and design of brand packaging

(e.g. Heinz Ketchup Squeeze-it, Becks rubber handles); the decisive question is what

is perceived by the customers as beneficial innovation and thus as a degree of

differentiation.

Creation and design of brands and their marks (Coca-Cola bottle, profiling with

extraordinary design, Audi, Bang & Olufsen)

Operative Brand Management


Single-Frame radiator grille and unusual design at B&O as a comprehensive

brand performance element


Packaging innovations Heinz Ketchup and Beck‘s crate of beer


2. Brand pricing

Brand identity must be reflected in a pricing policy appropriate to the brand.

Determining on what terms and conditions a brand is offered on the market (high

competitive pressure in the food industry, Unilever, P&G and Nestlé are radically reducing

their brand portfolios in order to concentrate their funds on so-called brand

champions/strong A-brands).

3. Brand communication

A particular challenge in brand communication lies in the consistent design of the content

and form of the brand message for all selected communication instruments in the sense

of communication that is consistently focused on communicating the brand identity.

Creation of new worlds of experience (example Volkswagen Autostadt, more than 5

million visitors per year).

Visual key images, acoustic key melodies (Becks Joe Cocker Sail away, Jingle Deutsche

Telekom, as so-called brand icons for brand profiling)

Brand icons represent all possible senses of the brand (visual, acoustic, haptic, olfactory

and gustatory). Anchor point with high recognition force. Claims/Slogans

Communication and presentation of the brand at the point of sale (building architecture,

light, colours)




4. Brand distribution

Central decision criterion is the fit for brand identity

Occupation of specific sales channels -> competitive advantages

Ensure trust-cooperative manufacturer-trade relationship (different objectives)

Joint investment in Category Management

5. Securing the wholeness of the brand identity through brand integration

A strong brand in the long term can only be built if all operational brand management

measures are aligned with the previously defined brand identity.

The low price of the Swatch watch, for example, together with the unconventional

communication and the extraordinary design of the watches are an important part of the

Swatch brand. This consistency must be ensured within the framework of brand

integration. If necessary, organizationally independent position (brand management with

linked to the top management).

Brand identity serves the enforcement of a common image of the brand with all internal

and external target groups.


Swatch Group watch and jewelry brands – Brand integration

Prestige and Luxury Range:

Breguet, Harry Winston,

Blancpain, Glashütte Original,

Jaquet Droz, Léon Hatot, Omega.

High Range:

Longines, Rado, Union Glashütte

Middle Range:

Tissot, Balmain, Certina, Mido,

Hamilton; Calvin Klein.

Basic Range:

Swatch, Flik Flak.


6. Protection of the brand identity through legal trademark protection

Challenge: Counterfeiting/trademark piracy

Intelligence Bureau estimates that counterfeiting accounts for approximately 6% of

world trade.

The task of legal trademark protection is to legally protect all protectable brand icons

(name, logo, melodies, etc.) from access and misuse by competitors in order to

prevent erosion of the brand value.


Providing information and advice to all departments involved in brand management,

combined with an overarching coordination function.

An effective Brand controlling supports strategic and operative brand management in

all planning steps.

It is the conclusion of a cycle of identity orientated brand management, as well as the

starting point for the situation analysis within the framework of a new process cycle.



Structure of products (Procter & Gamble 2008)

Beauty

Haushalt

Hygiene & Babypflege Gesundheit

Tiernahrung Snacks


Source: Interbrand (2010)

Best Global Brands 2009 (in Billion US $)

In its annual brand value calculation, the US company Interbrand assesses the

factors of economic success, consumer popularity and brand strength.


Source: Interbrand 2012

Best Global Brands 2011 (in Billion US $)


Best Global Brands 2013

Source: Interbrand 2013, http://www.interbrand.com/de/best-global-brands/2013/Best-Global-Brands-2013-Brand-View.aspx,


Best Global Brands 2017 (Interbrand)


The brand equity can be understood as the value associated with the name or

symbol of the brand. It can be seen as an added value compared to a technically

and physically identical but nameless product.

Brand equity (or brand value) is often defined as the present value of discounted,

future brand-specific deposit surpluses.

The basic problem of brand valuation is to isolate the deposit surpluses caused

by the brand.

Quelle: Müller-Hagedorn, L./ Schuckel, M, 2003; S. 184.

The concept of brand value and the problem of brand valuation


Occasions and procedures for determining the brand value

Reasons for the brand evaluation are among others

- Purchase or sale of trademarks to determine a purchase price

- In licensing trademarks to determine licensing fees

- Target figure within strategic brand management

There are more than 500 different models for calculating the brand value, which

show great differences in the results.

Essentially, these procedures are based on the results of customer surveys that

capture non-monetary brand value indicators, such as brand awareness, brand

image, etc., or directly or indirectly attempt to determine the amount of money

that, from the customer's point of view, is the difference between a branded article

and an unmarked product.

Quelle: Müller-Hagedorn, L./ Schuckel, M, 2003; S. 184f.

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