International Marketing #10

Branding

Mark Robnett

Yunnan Normal University Business School

Spring 2019

The Top Brand in the World – 2018

Brand Value: 302,063,000,000 USD

• Received $89 billion revenue from advertising in its

core search business

• Growing new businesses, including healthcare, life

sciences and augmented reality.

• Core products include Android, Chrome, Gmail,

Maps and Search.

• Google continues development of self-driving

vehicles, AI, etc.

Brand value +23%

2017 to 2018

Words for Today

1. Leverage

Using a small amount of force to accomplish large goals

2. Loyal

A long-term commitment to something

3. Firm

Another name for a company

4. Endorse

To align with and recommend something

5. Differentiate

To make something different (and hopefully, better)

Words for Today

6. Subgroup

Part of a group, usually set apart for a reason

7. Apparel

Clothes

8. Financial Institutions

Banks or investment companies

9. Retail

Businesses that sell directly to end users

10. Wholesale

Businesses that sell to other businesses

What is a Brand?

• It might be harder to describe than you think.

• “I know it when I see it.”

Three key components of a Brand A social group of people and

organizations that communicate directly

or indirectly about a brand

Brand Interest Group

What is branded (the

product, service,

organization, etc)

Brand Objects

What do we expect

from the brand?

Brand Meaning

Communication

Process

What do Brands do?

“Strong brands have the power to create business value. They impact much more than revenues and profit margins. Strong brands create competitive advantages by commanding a price premium and decrease the cost of entry into new markets and categories. They reduce business risk and help attract and retain talented staff.”

Millward Brown Optimor, Global Branding Consultants

Brand Value

Branded Item Price

__- Same Item Price, no brand___

= Brand Value (of item)

_____ * Sales Volume_________

= Brand Value (of business)

The extra value due to trust, quality expectation, pride of ownership, etc.

Brand Value (example)

4 RMB (Coca Cola Price)

__- 2.5 RMB (Bubba Cola Price)_

= 1.5 RMB Brand Value (of 1 Can Coke)

_ * 100,000,000 Cans Coke___

= 150,000,000 RMB Brand Value (of business)

Brand Contribution –Answers this question: How much total value

comes from the brand name?

Examples:

5 : Gucci

4 : Nike

3 : China Mobile

2 : Wal-Mart

1 : Sinopec

3300 Stores in China 6000 by 2023

The Best Brands in the World

• “Brandz” Report by Kantar Millward Brown

• Look at the following lists of the strongest brands and ask these questions:

–Who are the people that care about this brand?

–What does the brand mean have to them?

–What offering is actually branded?

–How does this brand create value?

Top Global Brands of 2018 Brand Category Value $Mil. Contrib. 2017 vs. 2016

Top Global Brands of 2018 Brand Category Value $Mil. Contrib. 2017 vs. 2016

Top Global Brands of 2018 Brand Category Value $Mil. Contrib. 2017 vs. 2016

Top Global Brands of 2018 Brand Category Value $Mil. Contrib. 2017 vs. 2016

Main Types of Branding:

• Corporate Branding: All activities and products from the firm carry the same brand (e.g. Nike, Samsung)

– Increases the attractiveness of the whole company

– Efficient leverage of marketing resources

– Increases corporate value to shareholders and employees

• Product Branding: Each product is branded separately, developing different customer segments and stakeholder groups (e.g. Crest)

2019 Top Chinese Brands – 1 to 12

2019 Top Chinese Brands – 13 to 25

2019 Top Chinese Brands – 26 to 38

2019 Top Chinese Brands – 39 to 50

China’s Strongest New Brands

This Week’s Key Principles:

• Strong brands create value by building trust and loyalty among their brand interest group.

• Companies seek to define and strengthen the brand meaning in each market communication.

• Corporate brands can increase the value of every offering from a corporation.