Introduction to Brand Management - Brand Management Course School of Business and Management, Bandung Institute of Technology

1. MB4019
BRANDING AND MARKETING
COMMUNICATION
Master of Business Administration
School of Business and Management
Institut Teknologi Bandung

2. 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)

3. 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

4. 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.

5. COURSE STRUCTURE
Understanding of brand
Ability to Develop Plan elements
for Branding Decision
Ready as Assistant and Create Mock Ups Understanding of Brand
Brand Manager (brand Product relationship
elements, product, ads
and touchpoints)
Understanding of Brand
Pricing
Understanding of Brand
Ability to Develop Distribution
Branding Decision
Understanding of Brand
marketing
Understanding of Brand
Touchpoints
Ability to Identify
Brand Problems
Ability to conduct Brand
Performance Analysis
Understanding of Brand, Brand
Role, Brand Objectives, Brand Understanding of Understanding of Brand
Equity, and Brand Brand Measures Analysis Steps and Tools
Management

6. MY SHORT PROFILE:
Dr. Reza Ashari Nasution

7. EDUCATION
1994 - 1998 2001 - 2005

8. WORK EXPERIENCE
2001 – 2005
1998 - 1999
2005 - NOW Sultan Qaboos
University, Oman
2000
2008

9. RESEARCH INTERESTS
Brand Preference
Brand Community
Brand Partnership
Brand Ecosystem

10. LEARNING METHODS

11. EVALUATION
Item Weight
Quiz 15%
Group assignment 30%
Mid Test 25%
Final Test 30%
TOTAL 100 %
BC B AB A

12. 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

13. 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.

14. 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

15. MM6016 Branding and Marketing Communication
Introduction to
Brand

16. HISTORY OF BRAND
• Old Norse word: “Brandr” = “To Burn”
• Greeks and Romans puts their
signatures/symbols on wet claypots
• Pottery communities

17. TRADITIONAL BRAND DEFINITION
• It’s a mark
• Different forms: name, logo, symbol, design,
or combination of those
• Purpose: to differentiate
• Focus: tangible

18. 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”

19. WHAT IS YOUR PERCEPTION ABOUT...
BANK MANDIRI
BANK CENTURY
GARUDA INDONESIA
MERPATI AIRLINES
APPLE IPAD
SAMSUNG GALAXY TAB

20. WHICH ONE IS THE CORRECT LOGO

21. MANIFOLDS OF BRAND DEFINITION
Source: Berthon et al. (2007)

22. 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

23. 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.

24. MM6016 Branding and Marketing Communication
Brand Roles &
Objectives

25. Quality Quick
Signal Reference
Bring
To more
Identify revenue
Brand
As To
guarantee leverage
Offsetting
To reflect
performance
failure
personality

26. BRANDING OBJECTIVES
Brand Value Chain
Activity & Program Customer Perceptions & Market
Metrics Behavior Performance
•Marketing Investment •Sales
•Program Quality •Brand awareness •Market share
•Clarity •Brand associations •Price premium
•Relevance •Profitability
•Distinctiveness • Perceived quality •Price elasticity
•Consistency •Brand Loyalty •Expansion success
•Channel expansion
BRANDING OBJECTIVES
26

27. MM6016 Branding and Marketing Communication
BRAND CLASSIFICATION
27

28. CRITERIA FOR CLASSIFYING
• Based on brand architecture
• Based on supply chain entity
• Based on product types
• Based on customer types
• Based on geographic scope
28

29. BASED ON BRAND ARCHITECTURE
Corporate Brand
Family Brand
Individual Brand
Modifier (designating item or model
29

30. AN EXAMPLE
Procter & Gamble
Olay
Olay Total Effects – Olay Natural White – Olay
White Radiance
Olay Total Effects cream – cleanser – eye cream
30

31. BASED ON SUPPLY CHAIN ENTITY
• Manufacturer brand
• Distributor/retailer brand
31

32. BASED ON PRODUCT TYPES
• Product/Physical goods brand
• Service brand
32

33. BASED ON CUSTOMER TYPE
• B2B brand
• B2C brand
33

34. BASED ON GEOGRAPHIC SCOPE
• Global brand
• Local brand
CORA MEDIA INTERAKTIVE
34

35. MM6016 Branding and Marketing Communication
BRAND ARCHITECTURE
35

36. 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.

37. EXAMPLE
• GILLETTE
• OLAY
• PAMPERS

38. MM6016 Branding and Marketing Communication
BRAND RELATIONSHIP SPECTRUM
38

39. TYPES OF BRAND RELATIONSHIPS
• BRANDED HOUSE
• SUB BRANDS
• ENDORSED BRANDS
• HOUSE OF BRANDS

40. 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

41. 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.

42. 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

43. 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)

44. MM6016 Branding and Marketing Communication
BRAND PORTFOLIO
44

45. 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”

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

47. Accor Group Coca Cola Company
(http://home.hospemag.com/co/accor) http://foodanddrinkbusiness.com/?p=4403

48. BRAND PORTFOLIO CONCEPT (1)
Products
P1 P2 P3 ... PN
B1
B2
B3
Brands
...
BN
Brand Brand
Portfolio A Portfolio B

49. 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

50. MM6016 Branding and Marketing Communication
BRAND POSITIONING
50

51. 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.

52. CREATING POSITIONING (1)

53. 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

54. 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

55. 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

56. IDENTIFYING NEEDS
• Market research
• Market insight
• Market testing

57. COMPETITIVE ANALYSIS
• Competitive mapping
• Benchmark
• Strategic actions
• Changes in PEST factors
• SWOT

58. POP & POD
• Point of Parity (POP)
– Category POP
– Competitive POP
• Point of Difference (POD)
– Category POD
– Competitive POD

59. POSITIONING STATEMENT

60. MM6016 Branding and Marketing Communication
BRAND AND PRODUCT
60

61. BRANDS VS PRODUCTS
Product Brand
Anything we can offer to a Sum total of consumer
market for attention, perceptions and feelings about
the product’s attributes and
acquisition, use, or
how they perform, about the
consumption that might brand name and what it stands
satisfy a need or want. for, and about the company
associated with the brand.
61

62. PRODUCTS VS BRANDS
Computer
Car
Beverage
Electronic
Appliance
62

63. RELATIONSHIP BETWEEN PRODUCT &
BRAND (1)
Potential
Product
Augmented
Product
Expected
Product
Generic
Product
Core
benefit
63

64. RELATIONSHIP BETWEEN PRODUCT &
BRAND (2)
Branded product
Brand’s intangible Product’s visible and
$$
Halo effect
values & imagery differentiating characteristics
Brand aspiration Product satisfaction
Expectations
64

65. RELATIONSHIP BETWEEN PRODUCT &
BRAND (3)
Resonance
Core product benefit Judgments Feelings
Performance Imagery
Salience
Brand building equity pyramid
65

66. 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
Konsumen
Konsumen
Perusahaan Perusahaan
Produk Brand Brand Produk Perusahaan Brand Konsumen
(a) (b) (c)

67. BRAND IDENTITY AND IMAGE
67
Brand vision
Brand management process: and purpose Brand perception process:
top-down Bottom-up
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
Permanent fluctuations of the market
Evolution of competition, life stles, technology

68. MM6016 Branding and Marketing Communication
STRATEGIC BRAND MANAGEMENT
68

69. CONSIDERATIONS AND STEPS
• Brand Life Cycle
• Davis (2010): brand has to maintain its
relevance
• Keller (2008):

70. STEP 1
• Mental Maps
• Competitive frame of reference
• Points of parity and points of
difference
Identify and Establish
Brand Positioning • Core brand associations
and Values • Brand manatra
70

71. BRAND ELEMENTS
• Kapferer (2008)
Brand concept (value proposition)
Tangible and intangible
Brand name and symbols Product or service
Semiotic invariants Experience

72. STEP 2
• Mixing and matching of brand
elements
• Integrating brand marketing
activities
Plan and implement • Leveraging secondary associations
Brand marketing
programs
72

73. BRAND MARKETING PROGRAMS
• Davis (2010)
– Communication objectives
– Messages
– Mode (touchpoints)
– Evaluation
– Adjustment

74. STEP 3
• Brand value chain
• Brand audits
• Brand tracking
Measure and
interpret brand
• Brand equity
performance management system
74

75. Brand Tracking accross
the brand value chain
Brand Value Chain
Activity & Program Customer Perceptions & Market
Metrics Behavior Performance
•Marketing Investment •Sales
•Program Quality •Brand awareness •Market share
•Clarity •Brand associations •Price premium
•Relevance •Profitability
•Distinctiveness • Perceived quality •Price elasticity
•Consistency •Brand Loyalty •Expansion success
•Channel expansion
75

76. STEP 4
• Brand-product matrix
• Brand portfoilio and
hierarchies
• Brand expansion strategies
Grow and sustain • Brand reinforcement and
brand equity revitalization
76

77. INTEGRATED BRANDING

78. CONSISTENT BRANDING

79. BRAND EVOLVES
Source: McEnaly and de Chernatony, 1999

80. MM6016 Branding and Marketing Communication
CASE 1: SAMSUNG
WRITTEN BY FAN YE AND CHRISTIAN KIM UNDER SUPERVISION OF PROF. ROBIN
RITCHIE OF RICHARD IVEY SCHOOL OF BUSINESS IN 2004
80

81. 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

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

83. “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)

84. 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

85. MM6016 Branding and Marketing Communication
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
85

86. 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.

87. • 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

88. “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)

89. “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)

90. 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)

91. “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)

92. EXAMPLE: PRENAGEN ESENSIS