MB4019BRANDING AND MARKETING

COMMUNICATION

Master of Business AdministrationSchool of Business and Management

Institut Teknologi Bandung

BACKGROUND

• Brand is a strategic asset for companies• Brand management incosistency will generally

lead to failure and success will bring significant advantages for companies

• Few know how to manage brand properly• This course is designed to help students

learning about how to be a good assistant brand manager (as your first appointment in brand management)

LEARNING GOALS

1. To build students’ skills in analysis of branding situation using the concept they have learned

2. To develop decision making skill that enable students to identify alternative solutions and choose the one which can strengthen brand position in the market

3. To develop team work and communication skills and leadership which is required to run brand management activities

LEARNING OUTCOMES

After completing this course, students will have required competencies as an assistant brand manager and demonstrate leadership, teamwork, and communication skill required to perform their role as assistant brand manager effectively.

COURSE STRUCTURE

Ready as AssistantBrand Manager

Understanding of brand elementsAbility to Develop Plan

for Branding Decision and Create Mock Ups

(brand elements, product, ads and

touchpoints)

Ability to Develop Branding Decision

Ability to Identify Brand Problems

Ability to conduct Brand Performance Analysis

Understanding of Brand Analysis Steps and Tools

Understanding of Brand Measures

Understanding of Brand, Brand Role, Brand Objectives, Brand

Equity, and Brand Management

Understanding of Brand Product relationship

Understanding of Brand Pricing

Understanding of Brand Distribution

Understanding of Brand marketing

Understanding of Brand Touchpoints

MY SHORT PROFILE:Dr. Reza Ashari Nasution

EDUCATION1994 - 1998 2001 - 2005

WORK EXPERIENCE

Sultan Qaboos University, Oman

2000

1998 - 1999

2008

2005 - NOW

2001 – 2005

RESEARCH INTERESTS

Brand Partnership

Brand Preference

Brand Community

Brand Ecosystem

LEARNING METHODS

EVALUATION

BC B AB A

Item Weight

Quiz 15%

Group assignment 30%

Mid Test 25%

Final Test 30%

TOTAL 100 %

STUDENT GUIDANCE

In order to succeed, students are advised to do the followings:• Allocate sufficient time for self preparation• Discuss concepts and cases with their group• Elaborate practical cases apart from cases

given• Have a proper notes of all lecture • Contribute actively in the class

REFERENCES

Main text book:• Kevin L. Keller, 2008, Strategic Brand Management, 3rd Edition,

Prentice Hall. Supporting text:• Gabriela Salinas, 2009, The International Brand Valuation

Manual: a complete overview and analysis of brand valuation techniques, methodologies and applications, John Wiley & Sons. Ltd.

• John A. Davis, 2010, Competitive Success: how branding adds

value, John Wiley & Sons, Ltd.

NEED TO DISCUSS?

• Director Room, MBA ITB Building• Call 022-2504308 ext 126• E-mail reza@sbm-itb.ac.id • From Monday to Friday, 8am – 5pm

Introduction to Brand

MM6016 Branding and Marketing Communication

HISTORY OF BRAND

• Old Norse word: “Brandr” = “To Burn”

• Greeks and Romans puts their signatures/symbols on wet claypots

• Pottery communities

TRADITIONAL BRAND DEFINITION

• It’s a mark• Different forms: name, logo, symbol, design,

or combination of those• Purpose: to differentiate • Focus: tangible

TODAY’S PRACTICAL BRAND DEFINITION

• Set of associations or known descriptions• Stored in people’s mind• Which is represented, at least, by name (this is

the most remembered element of a brand)• Focus: intangible• Holt (2003): “Brand is perceptual entity,

rooted in reality”

WHAT IS YOUR PERCEPTION ABOUT...

BANK MANDIRIBANK CENTURY

GARUDA INDONESIAMERPATI AIRLINES

APPLE IPADSAMSUNG GALAXY TAB

WHICH ONE IS THE CORRECT LOGO

MANIFOLDS OF BRAND DEFINITIONSource: Berthon et al. (2007)

HOLISTIC DEFINITION OF BRAND(De Chernatony, 2006)

• Input perspective– Brand as logo– Brand as identity– Brand as quality indicator– Brand as values– Brand as vision

• Output perspective– Brand as image– Brand as relationship

• Time perspective– Brand is a dynamic entity

BRAND DEFINITION (UU 15/2001)

1. Merek adalah tanda yang berupa gambar, nama, kata, huruf-huruf, angka-angka, susunan warna, atau kombinasi dari unsur-unsur tersebut yang memiliki daya pembeda dan digunakan dalam kegiatan perdagangan barang atau jasa.

2. Merek Dagang adalah Merek yang digunakan pada barang yang diperdagangkan oleh seseorang atau beberapa orang secara bersama-sama atau badan hukum untuk membedakan dengan barang-barang sejenis lainnya.

3. Merek Jasa adalah Merek yang digunakan pada jasa yang diperdagangkan oleh seseorang atau beberapa orang secara bersama-sama atau badan hukum untuk membedakan dengan jasa-jasa sejenis lainnya.

Brand Roles & Objectives

MM6016 Branding and Marketing Communication

Brand

To Identify

Quality Signal

Quick Reference

Bring more

revenue

To reflect personality

As guarantee

To leverage

Offsetting performance

failure

BRANDING OBJECTIVES

Activity & Program Metrics

Market Performance

Customer Perceptions & Behavior

• Marketing Investment• Program Quality

• Clarity• Relevance• Distinctiveness• Consistency

• Channel expansion

• Brand awareness• Brand associations• Perceived quality• Brand Loyalty

• Sales• Market share• Price premium• Profitability• Price elasticity• Expansion success

Brand Value Chain

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BRANDING OBJECTIVES

BRAND CLASSIFICATION

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MM6016 Branding and Marketing Communication

CRITERIA FOR CLASSIFYING

• Based on brand architecture• Based on supply chain entity• Based on product types• Based on customer types• Based on geographic scope

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BASED ON BRAND ARCHITECTURE

Corporate Brand

Family BrandIndividual Brand

Modifier (designating item or model29

AN EXAMPLE

Procter & Gamble

OlayOlay Total Effects – Olay Natural White – Olay White Radiance

Olay Total Effects cream – cleanser – eye cream30

BASED ON SUPPLY CHAIN ENTITY

• Manufacturer brand

• Distributor/retailer brand

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BASED ON PRODUCT TYPES

• Product/Physical goods brand

• Service brand

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BASED ON CUSTOMER TYPE

• B2B brand

• B2C brand

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BASED ON GEOGRAPHIC SCOPE

• Global brand

• Local brand

CORA MEDIA INTERAKTIVE

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BRAND ARCHITECTURE

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MM6016 Branding and Marketing Communication

Brand architecture is a structure of all brands that a company has. The structure shows relationship between brands and reflects the brand strategy of the company.

EXAMPLE

• GILLETTE• OLAY• PAMPERS

BRAND RELATIONSHIP SPECTRUM

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MM6016 Branding and Marketing Communication

TYPES OF BRAND RELATIONSHIPS

• BRANDED HOUSE• SUB BRANDS• ENDORSED BRANDS• HOUSE OF BRANDS

BRANDED HOUSE

• A single identity that encompasses all products (example: BMW, Microsoft, CNN)

• Brand strategy implications:– Advantages: requires fewer resources, minimize

misunderstanding, easier alignment– Disadvantages: inability to appeal diverse

consumer segments, generic brand campaign which might not be memorable, creativity is hindered, consequence of failure is larger

SUB BRANDS

• A strong brand at a level under the master brand (i.e. a sub brand). Example: Nike Air Jordan, Lenovo Thinkpad

• Brand strategy implications:– Advantages: both brands (master and sub brands) give each

other recognition and create new associations that can help the market’s understanding of both brands, helps growing market share and shareholder benefits, greater loyalty from distribution partners

– Disadvantages: complexity and expenses are added to marketing communication, may dilute or confuse master brand, complex distribution strategy, create a single point of attack for competitors.

ENDORSED BRANDS

• Independent brand, which is overtly endorsed by a master brand (example: Polo by Ralph Lauren, Ibis by Accor Group etc)

• Brand strategy implications:– Advantages: provide credibility for the endorsed brands,

endorsed brand benefits from the master brand’s reputation, can break into competitor’s territory

– Disadvantages: can be expensive, too many endorsement may signal weak sub-brands, greater consequences of failure

HOUSE OF BRANDS

• Multiple strong brands housed in a de-emphasized, weak or unknown corporate entity (example: Procter & Gamble, Kao etc)

• Brand strategy implications:– Advantages: each brand can maximize impact on market or

niches, individual brand can be specified to fit a target market, increase variations of new revenue streams, more creativity and talents

– Disadvantages: little or no leverage can be used with the parent association (remember the Indonesat tagline: “Punya Indosat”), more expensive, creating internal rivalries, hard to unify customer loyalty, confusing image (may not be aligned perfectly)

BRAND PORTFOLIO

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MM6016 Branding and Marketing Communication

LITERAL DEFINITION

• Keller (2008, p. 434)“the set of all brands and brand lines that a particular firm offers for sale to buyers in a particular category”

• Aaker (2004, p. 14)“Brand portfolio is both owned brands and brands linked through alliances, which are considered as a team of brands working together, each with assigned roles to enable and support business strategies”

PRACTICAL DEFINITION

Brand portfolio is the collection of all brands owned by a particular company, which ranges across categories and products.

Accor Group(http://home.hospemag.com/co/accor)

Coca Cola Companyhttp://foodanddrinkbusiness.com/?p=4403

BRAND PORTFOLIO CONCEPT (1)

Products

Brands

P1 P2 P3 ... PN

B1

B2

B3

...

BN

Brand Portfolio A

Brand Portfolio B

BRAND PORTFOLIO CONCEPTS (2)(KELLER, 2008 P. 434)

• Brand line: all products sold under a particular brand• Product line: a group of products within a product

category which are closely related, sold to the same customer group, same outlets, or fall within given price ranges

• Product mix: all product lines made available to buyers• Brand mix: all brand lines available to buyers• Depth of branding strategy: how deep is the brand

portfolio• Breadth of branding strategy: how far is a brand stretched

to include other product categories

BRAND POSITIONING

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MM6016 Branding and Marketing Communication

DEFINITION

• Brand Positioning is “the act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s mind”(Keller, 2008)

• The distinctiveness is the product of benchmark againts competitors or customers’ point of reference

• According to Kotler and Keller (2006), positioning does not necessarily create distinct characteristics, because of different competitive strategies applied by companies.

CREATING POSITIONING (1)

CREATING POSITIONING (2)

Keller (2008):1. Determining the frame of reference:– Target consumers– Competitors

2. Determining the ideal POP and POD of brand associations– How the brand is similar to those competitors– How the brand is different from them

SEGMENTING

• Segmentation is the process of dividing a whole market into group of buyers

• Bases for segmentation:– Product-based: category, function, size, etc.– Consumer-based: demography, geography, psycography and

behavior• Good segment criteria:– Identifiable– Considerable size– Accessible– Responsive

TARGETING• Targeting is an act of choosing one or more of the identified segments• The selection is based on:

– Market attractiveness– Competitive positioning

• An innovative company digs down each market segment to find new needs

• The newly identified needs is scrutinized to measure potential growth in the future

• Different types of targeting:– One segment targeting– Multiple segment targeting– Combined segment targeting– Mass market targeting

IDENTIFYING NEEDS

• Market research• Market insight• Market testing

COMPETITIVE ANALYSIS

• Competitive mapping• Benchmark • Strategic actions• Changes in PEST factors• SWOT

POP & POD

• Point of Parity (POP)– Category POP– Competitive POP

• Point of Difference (POD) – Category POD– Competitive POD

POSITIONING STATEMENT

BRAND AND PRODUCT

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MM6016 Branding and Marketing Communication

BRANDS VS PRODUCTS

ProductAnything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want.

BrandSum total of consumer perceptions and feelings about the product’s attributes and how they perform, about the brand name and what it stands for, and about the company associated with the brand.

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PRODUCTS VS BRANDS

Computer

CarBeverag

eElectronic Appliance

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RELATIONSHIP BETWEEN PRODUCT & BRAND (1)

Potential Product

Core benefit

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RELATIONSHIP BETWEEN PRODUCT & BRAND (2)

$$Halo effectProduct’s visible and differentiating characteristics

Brand’s intangible values & imagery

Brand aspiration Product satisfaction

Expectations

Branded product

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RELATIONSHIP BETWEEN PRODUCT & BRAND (3)Resonance

Judgments

Feelings

Performance

Imagery

Salience

Core product benefit

Brand building equity pyramid65

PRODUCT, BRAND AND CONSUMERS

• Product used to dictates brand. The situation changed now• Brand influences purchase• Brand is perceived and experienced by consumers• Brand used to be company’s belonging, but now it is shared with

consumers

Produk Brand Brand Produk

Perusahaan Perusahaan

Konsumen Konsumen

BrandPerusahaan Konsumen

(a) (b) (c)

BRAND IDENTITY AND IMAGEBrand vision

and purpose

Core brand values

Brand

personality codes

Semiotic

invariants

Strategic

benefits

and attributes

Physical

signature, family resemblance

Product A.. Product B .. Product N .. Typical

brand actions

Brand management process:top-down

Brand perception process:Bottom-up

Permanent fluctuations of the marketEvolution of competition, life stles, technology

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STRATEGIC BRAND MANAGEMENT

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MM6016 Branding and Marketing Communication

CONSIDERATIONS AND STEPS

• Brand Life Cycle• Davis (2010): brand has to maintain its

relevance• Keller (2008):

STEP 1

Identify and Establish Brand Positioning and

Values

•Mental Maps•Competitive frame of reference•Points of parity and points of difference•Core brand associations•Brand manatra

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BRAND ELEMENTS• Kapferer (2008)

Brand name and symbols Semiotic invariants

Brand concept (value proposition)Tangible and intangible

Product or service Experience

STEP 2

Plan and implement Brand marketing

programs

•Mixing and matching of brand elements•Integrating brand marketing activities•Leveraging secondary associations

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BRAND MARKETING PROGRAMS

• Davis (2010)– Communication objectives– Messages– Mode (touchpoints)– Evaluation– Adjustment

STEP 3

Measure and interpret brand performance

•Brand value chain•Brand audits•Brand tracking•Brand equity management system

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Activity & Program Metrics

Market Performance

Customer Perceptions & Behavior

Brand Tracking accross the brand value chain

• Marketing Investment• Program Quality

• Clarity• Relevance• Distinctiveness• Consistency

• Channel expansion

• Brand awareness• Brand associations• Perceived quality• Brand Loyalty

• Sales• Market share• Price premium• Profitability• Price elasticity• Expansion success

Brand Value Chain

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STEP 4

Grow and sustain brand equity

•Brand-product matrix•Brand portfoilio and hierarchies•Brand expansion strategies•Brand reinforcement and revitalization

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INTEGRATED BRANDING

CONSISTENT BRANDING

BRAND EVOLVES

Source: McEnaly and de Chernatony, 1999

CASE 1: SAMSUNG

WRITTEN BY FAN YE AND CHRISTIAN KIM UNDER SUPERVISION OF PROF. ROBIN RITCHIE OF RICHARD IVEY SCHOOL OF BUSINESS IN 2004

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MM6016 Branding and Marketing Communication

SAMSUNG HISTORY

• From small trading company to an economy powerhouse

• Operated in 67 countries with more than 175000 employees worldwide

• Surpassed Hyundai to become the leading business group in South Korea

“Behind this impressive growth is Samsung’s effort to redefine itself as a vendor of cutting edge consumer technology” (P. 1)

“By 2000, the company’s successful launching of innovative product such as mobile phone, PDA, MP3 player, and digital TV had established Samsung as a credible player” (p. 4)

SAMSUNG’S BRANDING EFFORT• Samsung saw digital product as a major trend in consumer electronics• The company put a lot of investment in R&D and marketing of digital

products since then• In 1999, Samsung ran a global campaign of “SAMSUNG DigitAll –

everyone’s invited” to position the company as a producer of innovative and easy to use consumer electronic products

• Samsung moved into high profile marketing campaign by sponsoring the 2000 olympic in Sydney

• Increasing marketing communication budget by 35%• Featured some mobile phones in two box office movies: The Matrix:

Reloaded and The Matrix: Revolution• Samsung Electronic had redirected its focus away from mass merchants

to specialty retailers like Best Buy, Circuit City and CompUSA

CASE 2: FRANZ COLLECTION

WRITTEN BY PROF. LIEN TI BEI (NATIONAL CHENGCHI UNIVERSITY) AND PROF. SHIH-FEN CHEN (RICHARD IVEY SCHOOL OF BUSINESS) IN 2010

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MM6016 Branding and Marketing Communication

FRANZ COLLECTION HISTORY

• Franz Collection Inc. (Franz) is a Taiwan based manufacturer which specialized in functional and home décor accessories.

• The company was originated from Seagull Décor Co. Ltd which sold crafts, gifts, ornaments, and home décor items.

• Seagull was a pure original equipment manufacturing (OEM) company, flourished by capitalizing on the country’s skills in low-cost manufacturing and assembly.

• Seagull moved to trading business and became an ODM company (Original Design Manufacturing)

• As an ODM, Seagull was known by its design, creativity, cost effective, and efficient designers.

• The design skill elevated and Francis Chen, the owner, decided to launch their own brand: FRANZ

“Chen was aware that owning a brand was not as simple as putting a logo on the product...Chen also had to consider the resistance from Seagull’s current customers.” (p. 5)

“To prevent potential conflict with current clients, Chen set up a separate company, Franz Collection Inc. in both Taiwan and the United States in 2001. The separation helped position Franz as a premium brand in its own right, independent of what Seagull stood for” (p. 6)

FRANZ BRANDING EFFORTS

• Focus on porcelain (p. 6)• Described the brand essence and spirit (p. 9)• Set up a logo (p. 10)• Set up the principle of design and develop

required skills (p. 10)• Set up pricing (p. 5)• Set up marketing channel (p. 8)• Run marketing campaign (p. 9)

“OEM or ODM is the kind of business on order-to-build. You make nothing if there is no order. A branded product means that you control your own direction. OBM was not an easy choice. It was an unknown terrain and there were risks. But we went ahead, taking one step at a time.” (p. 13)

EXAMPLE: PRENAGEN ESENSIS