The document discusses brand positioning and measurement. It introduces three models for brand planning: 1) The brand positioning model helps guide integrated marketing to maximize competitive advantages. 2) The brand resonance model shows how to create intense, active loyalty relationships with customers. 3) The brand value chain model traces the value creation process to understand the financial impact of marketing investments. The brand positioning model is then explained in more detail. It emphasizes defining a brand's essence, benefits to customers, and uniqueness compared to competitors. A strong positioning guides consistent marketing activities.

1. 21ST CENTURY
BRAND MANAGEMENT:
GROWTH & PROFITABILITY
Marketing Association of Thailand
March 2011
Kevin Lane Keller
Tuck School of Business
Dartmouth College

2. Importance of Branding
Taught in top business schools and
executive leadership programs around the world
2

3. My Experience

4. Agenda
Session #1 (9:00 am – 10:20 am)
Understanding 21st Century Brand Management
Session #2 (10:35 am – 12:15 pm)
Brand Planning & Measuring Brand Equity
Session #3 (1:15 pm – 3:00 pm)
Building Strong Brands
Session #4 (3:15 pm – 5:00 pm)
Brand Growth Strategies & Putting It All Together
4

5. Understanding 21st Century Brand
Management
5

6. What is a Brand?
A “brand” is a name, term, sign,
symbol, or design which is
intended to …
Identify the goods or services of one seller
or group of sellers and to
Differentiate them from those of
competitors
6

7. What Can Brands Do?
Fundamentally, brands are a means to
create awareness & image for products &
services
Brands can create differentiation &
distinctiveness
Help to avoid “commodity trap” – pure price
competition
Brands offer a company the opportunity
to reap the benefits of good branding
Necessary … but not sufficient
7

8. The Power of Brands
A strong brand is a promise to customers and a
means to set their expectations
Reduce risk from predictable performance
A strong brand motivates and engages
employees
A strong brand provides a buffer & cushion in
the court of public opinion
A strong brand improves marketing
effectiveness & efficiency
A strong brand is one of a firm’s most valuable
intangible assets
8

9. The Concept of
Customer-Based Brand Equity
The customer-based brand equity model
defines brand equity as …
The differential effect that ..
customer brand knowledge has on …
customer response to brand marketing
Brand knowledge is all associations
linked to the brand
Thoughts, feelings, images, experiences, beliefs,
attitudes, experiences, etc.
9

10. Determinants of
Customer-Based Brand Equity
Customer is aware of and familiar
with the brand
Customer holds some strong,
favorable, and unique brand
associations in memory
10

11. Benefits of
Customer-Based Brand Equity
Much academic research & industry experience has
shown that a product or service with positive brand
equity should:
Enjoy greater brand loyalty & less vulnerability to competitors
Command higher margins
Receive greater supplier & partner support
Enjoy increased marketing communication effectiveness
Support new products or services as brand extensions
More effectively attract and retain better employees
Gain more favorable treatment with public opinion & policy
makers
11

12. Customer-Based Brand Equity
as a “Bridge”
Customer-based brand equity
represents the “added value”
endowed to a product
As a result of past investments in the
marketing of a brand
But also as a result of past customer
experiences, whether marketing-driven or not
Customer-based brand equity
provides direction and focus to future
marketing activities
12

13. The Challenges of Branding
Rapid technological developments
Greater customer empowerment
Fragmentation of traditional media
Growth of interactive & mobile marketing options
Channel transformation & disintermediation
Increased competition & industry convergence
Globalization & growth of developing markets
Heightened environmental, community, and social
concerns
Severe economic recession
13

14. Summary
Brands are one of a company’s most
important intangible assets … because
of what they do
Brands differentiate and create meaning
with customers & employees
Brands must be managed properly in an
increasingly challenging marketing
environment to reap the benefits of
strong branding

15. Eight Keys to
Achieving Branding Excellence
Consumer-Centric Brand Vision & Passion
Superior Competitive Brand Positioning
Clearly Defined Brand Architecture
Fully Integrated Marketing Program
Cultivated Brand Relationships
Premium-Driven Pricing Strategies
Relevant Marketing Innovation
Well-Managed Brand Growth Strategies
15

16. Achieving Branding Excellence
A Consumer-Centric Brand Vision and
Passion
Thorough & up-to-date consumer and employee
understanding
Find higher-order purpose that is anchored in …
Consumer aspirations
Company capabilities & goals
Transcend physical product category descriptions
and boundaries
Example:
16

17. Nike
Brand Mission: To bring inspiration and innovation
to every athlete in the world
”If you have a body, you’re an athlete”
Brand Values
Inspire
Innovate
Focus
Connect
Care
Brand Mantra
Authentic Athletic Performance
17

18. Achieving Branding Excellence
Superior Competitive Brand Positioning
Define appropriate competitive frames of
reference
Develop 3-5 unique brand points-of-difference
Establish 2-4 shared brand points-of-parity
Craft brand mantra
Example:
18

19. Visa
Goal: Attack American Express &
Marginalize MasterCard
Strategy: Neutralize & Differentiate
Point-of-Difference: Acceptability & Convenience
Point-of-Parity: Status, Prestige, & Cachet
Tactics
Larger merchant network
Gold and platinum cards
“It’s Everywhere You Want to Be”
19

20. Achieving Branding Excellence
Clearly Defined Brand Architecture
Understand potential of each brand in portfolio
Develop strong power brands with broad market footprints
Maximize market coverage and minimize overlap of all
brands
Only introduce sub-brands of a core brand that have clear
strategic roles
Example:
20

21. BMW
Clever straddle positioning with
corporate brand
Points-of-parity and points-of-difference
Luxury and Performance
Clearly defined sub-brand roles
Brand hierarchy: 3, 5, & 7 series
New models and brands to expand the brand
footprint
X3, X5, Z4, M3, 6 series, & Mini
21

22. Achieving Branding Excellence
Fully Integrated Marketing Program
Creatively combine sales generation and brand building in all
marketing activities
Blend consumer-directed “pull” with channel-directed “push”
Create a 360° degree “mix” and “match” marketing program
Employ range of traditional & non-traditional marketing
activities
Coordinate when possible to leverage effects
Example:
22

23. Red Bull
Employs a full set of brand elements
and marketing activities
Develops strong on-premise and in-
store marketing (push)
Communicates directly with
consumers (pull)
Traditional media advertising
Non-traditional events and promotions
23

24. Red Bull
Activities,
Events &
Experiences

25. Achieving Branding Excellence
Cultivated Brand Relationships
Build brand foundation of identity & meaning
Establish duality in terms of product
performance and brand imagery
Elicit positive rational & emotional responses
Create resonance and intense, active loyalty
relationship
Example:
25

26. Harley-Davidson
Harley went from near-bankruptcy to
over-demand
Improved product quality, design and innovation
Strong aspirational image of freedom, excitement,
and a rebellious nature
But with broad appeal (“Rolex Riders”)
Grew over 30% for two decades after going public
in 1986
Customers literally brand themselves (#1 tattoo in
U.S.)
90% say they would buy a Harley again
Harley creates a strong sense of
community and loyalty
26

27. Harley-Davidson
Many Harley Owner
Groups (H.O.G.’s)
events and activities
1,000,000 members
Strong dealer and
employee support
Wide variety of
lifestyle accessories
27

28. Achieving Branding Excellence
Premium-Driven Pricing Strategies
Lower costs to create efficiency and
effectiveness
Create differentiation and maximize customer
value
Price to capture value premium
Example:
28

29. Intel
Successfully branded a commodity and
ingredient
Creates differentiation & customer
value
Funds extensive co-op advertising program with
OEM partners
Engages in extensive retail promotions
Communicates directly with customers
Monitors price premiums closely as
measure of brand strength
29

30. Achieving Branding Excellence
Relevant Marketing Innovation
Be contemporary & relevant
Recognize the power of design
Introduce imaginative and captivating new
products, communications, and other marketing
activity
Example:
30

31. Apple
Sustained product innovation from inception
Macintosh personal computers
PowerBook laptops
iPod portable music player
iTunes music download website
iPhone mobile phone & apps
iPad tablet computer
Strong brand promise
Performance & design
How a product works, looks & feels
Personality: “Think different”
31

32. Achieving Branding Excellence
Well-Managed Brand Growth Strategies
Seamlessly leverage equity into new products and markets
Maximize product development
Maintain product innovation pipeline
Maximize market development
Optimize channel mix
Embrace multicultural marketing
Distinguish developed and developing markets
Effective top-down and bottom-up brand management
Example:
32

33. Starbucks
Starbucks commands a price
premium as it offers superior
delivery of desired benefits.
High quality coffee
Wide variety of coffee products & variations
Complete vertical integration
Controlled retail distribution
Motivated & trained employees
Rich sensory retail experience (“3rd place”)
Positive word-of-mouth & publicity
33

34. Starbucks
Product development
Coffee driven
New Flavors, Bottled Frappuccino, DoubleShot, Ice Cream
Complements
Starbucks Card Duetto Visa, Hear Music CD series & downloads
Market development
New outlets
Hotels, airports, airlines, book stores, department stores,
corporations, etc.
New markets
6000 coffeehouses in 48 markets outside North America (with
carefully chosen partners)
34

35. B-to-B Branding Addendums
Ensure the entire organization understands
and supports branding and brand management
Emphasize corporate or family brand
Establish strong corporate credibility & other
intangibles
Service delivery
Emotional rewards
Leverage equity via secondary associations
Other companies
Segment within & across companies & develop
tailored marketing
35

36. Service Branding Addendums
Maximize service quality by recognizing the myriad of
ways to affect consumer service perceptions.
Employ a full range of brand elements
Enhance brand recall and signal more tangible aspects of the brand.
Create and communicate strong organizational
associations.
Design corporate communication programs that augment
consumers’ service experiences.
Establish a brand hierarchy
Create distinct family or individual brands as well as meaningful
ingredient brands.
36

37. Branding Toolkit I
Rate your organization as to how well it does
for each branding competency (1 = Poor, …,
10 =Excellent).
1. ___ Consumer-Centric Brand Vision & Passion
2. ___ Superior Competitive Brand Positioning
3. ___ Clearly Defined Brand Architecture
4. ___ Fully Integrated Marketing Program
5. ___ Cultivated Brand Relationships
6. ___ Premium-Driven Pricing Strategies
7. ___ Relevant Marketing Innovation
8. ___ Well-Managed Brand Growth Strategies
How can you improve in those areas of
weakness?
37

38. Brand Planning & Measurement
38

39. Three Models to
Facilitate Brand Planning
To help guide these efforts,
three models of increasing
scope:
1) Brand Positioning Model
How to guide integrated marketing to
maximize competitive advantages;
2) Brand Resonance Model
How to create intense, activity loyalty
relationships with customers; and
3) Brand Value Chain Model
How to trace the value creation process
to better understand the financial
impact of marketing investments.
39

40. 1. Brand Positioning Model
Kevin Lane Keller, Brian Sternthal, and Alice Tybout (2002),
“Three Questions You Need to Ask About Your Brand,”
Harvard Business Review, September, 80 (9), 80-89.
40

41. Brand Positioning
Brand positioning is about how we want target
customers to think about a brand with respect
to competitors
A strong brand positioning guides marketing
activities by 1) clarifying the brand’s essence,
2) what the brand helps the customer achieve,
and 3) how it is unique in doing so
Everyone in the organization should understand the brand
positioning and use it as context for making decisions
41

42. The Four Components of a
Superior Competitive Positioning
Competitive frames of reference
Nature of competition
Target market
Develop unique brand points-of-difference (POD’s)
Desirable to consumers
Deliverable by the company
Differentiating from competitors
Establish shared brand points-of-parity (POP’s)
Negate competitor points-of-difference
Overcome perceived vulnerabilities
Demonstrate category credentials
Brand mantras
Short 3-to-5 word phrases that capture key POD’s & the irrefutable
essence or spirit of the brand.
42

43. Subway
Positioned as unique combination of
taste, health, & convenience
Fast food competitors (e.g., McDonald’s)
POP – convenience & taste
POD – health
Health food competitors
POP – health
POD – taste & convenience
43

44. Brand Positioning Inputs:
Understand Brand Meaning
Mental maps
Accurately portrays in detail all salient
brand associations and responses for a
particular target market (e.g., brand users)
Can create a mental map by asking
consumers for their top-of-mind brand
associations (e.g., “When you think of this
brand, what comes to mind?”).
List 10-15 dominant responses
44

45. Starbucks Mental Map
sophisticated Seattle
wholesome
earth colors coffee
consistent
relaxing
comfortable convenient/everywhere
treat/reward predatory
fresh faddish/trendy
quality
exotic snobbish/pretentious
variety
customized confusing
expensive

46. Starbucks Competitive Positioning
Competitor POP POD
Fast food chains/ —Convenience —Quality
convenience shops —Value —Image
—Experience
—Variety
—Quality
Supermarket brands —Convenience
—Image
(for home) —Value
—Experience
—Variety
Local cafe —Quality —Freshness
—Experience
—Price —Convenience
—Community
46

47. Brand Mantras
Short 3-to-5 word phrases that capture the
irrefutable essence or spirit of the brand.
Brand mantra must clearly delineate what
the brand is supposed to represent and
therefore, at least implicitly, what it is not
Brand mantras typically are designed to
capture the brand’s points-of-difference,
i.e., what is unique about the brand.
47

48. Brand Mantra Examples
Nike
“Authentic Athletic
Performance”
Disney
“Fun Family Entertainment”
Betty Crocker
“Homemade Made Easy”
American Express
“Worldclass Service,
Personal Recognition”
48

49. Brand Mantra Criteria
Communicate
A good brand mantra should define the category (or
categories) of business for the brand and set the brand
boundaries. It should also clarify what is unique about the
brand.
Simplify
An effective brand mantra should be memorable. As a
result, it should be short, crisp, and vivid in meaning.
Inspire
Ideally, the brand mantra would also stake out ground that
is personally meaningful and relevant to as many employees
as possible.
49

50. Starbucks Brand Mantra
“Rich, rewarding
coffee experience”
50

51. STARBUCKS BRAND POSITIONING WORKSHEET
Consumer
Target
Discerning
Coffee Contemporary
Drinker
Consumer
Insight Caring Thoughtful
Consumer
Coffee and the Takeaway
drinking Starbucks
24 hour Triple
experience is training of gives me
Responsible, Fairly Filtrated
often baristas locally Priced the richest
water
unsatisfying involved possible
Brand sensory
experience
Relaxing,
Mantra drinking
Consumer Employee rewarding
Rich, Rewarding
Coffee Experience
Fresh high coffee
moments quality coffee
Need State health &
Totally
stock Varied,
Desire for Rich sensory
integrated
benefits consumption Convenient, exotic coffee
better coffee experience friendly drinks system
and a better service Siren
consumption logo
experience Green &
Earth Colors
Competitive
Product Set
Local cafes
Fast food &
convenience
shops

52. A Good Brand Positioning
Must balance the complexity of consumer-
decision-making with the need for simplicity
Must have well-balanced “foot in the present”
and “foot in the future”
Must have competitively strong POPs & PODs
Recognize competitive vulnerabilities
Role play competitor’s positioning
Surface consumer trade-offs and negative correlations
Must take holistic view of POPs & PODs
Rational & emotional elements must reinforce
Must define sharp & specific POPs & PODs
“Confident” vs. “In Control to Resolve Tense Situations”
52

53. Final Word on Positioning
Often there will be 2-3 POP’s & POD’s that
really define the competitive battlefield
Articulate them carefully & explicitly (1 slide each)
The positioning provides a filter to
interpret any & all marketing activity
Does it uniquely reflect the brand?
Use the “brand substitution test”
In what ways does it build equity?
53

54. 2. Brand Resonance Model
Kevin Lane Keller (2001), “Building Customer-Based Brand
Equity: A Blueprint for Creating Strong Brands,” Marketing
Management, July/August, 15-19.
54

55. Create Brand Resonance
with Customers
Challenge is to ensure customers have
the right types of experiences to create
the right brand knowledge
Building a strong brand involves a series
of steps as part of a “branding ladder”
A strong brand is also characterized by
a logically constructed set of brand
“building blocks.”
55

56. BRAND RESONANCE PYRAMID
Stages of Brand Branding
Building Blocks Objective at
Development
Each Stage
RELATIONSHIPS: Intense,
4 What about you & me? Active Loyalty
Resonance
RESPONSE: Positive,
3 What about you? Accessible
Judgments Feelings Reactions
MEANING: Points-of-Parity
2 What are you? & Difference
Performance Imagery
IDENTITY: Deep, Broad
1 Who are you? Salience Brand
Awareness

57. Brand Resonance Pyramid
Terminology
Salience
Depth and breadth of brand awareness
Recognition and recall at purchase and consumption
Performance
What the brand does to meet customers' more functional needs.
Brand performance refers to the intrinsic properties of the brand in terms of
inherent product benefits.
Imagery
How people think about a brand abstractly rather than what they
think the brand actually physically does.
Brand imagery is thus more extrinsic properties of the brand.
Four important intangible dimensions are:
Type of user
Brand personality
History & heritage
Experiences
57

58. Brand Resonance Pyramid
Terminology
Judgments
Customers overall brand evaluations
How customers combine performance and imagery
associations to form different kinds of brand opinions
Feelings
Customers emotional responses and
reactions to the brand
Can be mild or intense; positive or negative; or
experiential or enduring in nature.
Can also relate to the social currency evoked by the
brand.
58

59. Dimensions of Brand Feelings
Brand feelings can be divided into two broad categories:
Experiential – immediate, short-lived during purchase/consumption
Enduring – private, possibly part of day-to-day life
Brands should have one, or ideally both, types of feelings
Experiential Feelings Enduring Feelings
• Warm • Sense of Security (Inner-directed)
Increasing
level of • Fun • Social Approval (Outer-directed)
intensity
• Exciting • Self-Respect (Actualization)
Self-Respect Higher
level of
values &
Sense of Security Social Approval needs
Inner-Directed Outer-Directed

60. Brand Resonance Pyramid
Terminology
Resonance
The extent to which customers feel that
they are “in synch” with the brand
Intensity or depth of the psychological bond that
customers have with the brand
Level of activity engendered by this loyalty
Repeat purchase rates
The extent to which customers seek out brand information,
events, or other loyal customers
Etc.
60

61. Brand Resonance Components
Behavioral loyalty – Customers’ repeat
purchases and the amount or share of
category volume attributed to the brand
How often do customers purchase a brand?
How much do they purchase?
61

62. Brand Resonance Components
Attitudinal attachment – When
customers view the brand as being
something special in a broader context
Do customers “love” the brand?
Do they describe it as one of their favorite
possessions?
Do they view it as a “little pleasure” they look
forward to?
62

63. Brand Resonance Components
Sense of community – When customers
feel a kinship or affiliation with other
people associated with the brand.
Do customers interact with fellow brand users or
employees or representatives of the company?
Does this occur on-line and/or off-line?
63

64. Brand Resonance Components
Active engagement – When customers are
willing to invest personal resources on the
brand – time, energy, money, etc. – beyond
those resources expended during purchase or
consumption of the brand
Do customers choose to join a club centered on a brand?
Do customers receive updates, exchange correspondence
with other brand users or formal or informal representatives
of the brand itself?
Do they visit brand-related Web sites, participate in chat
rooms, and so on?
64

65. Any marketing activity can be judged by its total effect
on the four dimensions of brand resonance
Behavioral
Loyalty
Attitudinal Sense of
Attachment Community
Active
Engagement

66. Sub-Dimensions of Brand Resonance Pyramid
RESONANCE
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT
FEELINGS
JUDGMENTS WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT
PERFORMANCE IMAGERY
PRIMARY CHARACTERISTICS & USER PROFILES
SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, SITUATIONS
DURABILITY & SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY, & EMPATHY HISTORY, HERITAGE,
STYLE AND DESIGN & EXPERIENCES
PRICE
SALIENCE
CATEGORY IDENTIFICATION
NEEDS SATISFIED

67. Nike Brand Resonance Pyramid
Attachment
Community
Engagement
Rational Fun Emotional
Credibility Exciting Route
Route
Superiority Self‐respect
Innovative Empowerment
Quality Irreverence
Stylish
Salience – Everything Athletic

68. Starbucks Brand Resonance Pyramid
Loyalty
Attachment
Community
Engagement
Quality Warm
Rational Emotional
Credibility Fun
Route Route
Consideration Relaxation
Superiority Romantic indulgence
Quality ingredients Sophisticated & elegant
Exotic variety Casual & comfortable
Personalized service “Third Place”
Comfortable atmosphere Progressive & cool
Salience – Highly accessible & convenient (ideally anywhere & anytime)

69. 3. Brand Value Chain Model
Kevin Lane Keller and Don Lehmann (2003), “How Do
Brands Create Value,” Marketing Management, May/June,
26-31.
69

70. Brand Value Chain
Marketing Customer Market Shareholder
Program Mindset Performance Value
Investment
- Product - Awareness - Price premiums - Stock price
- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Cost savings - Enterprise value
- Employees - Attachment - Expansion success - Market capitalization
- Other - Activity - Market share
- Profitability
70

71. Brand Value Chain
Marketing Customer Market Shareholder
VALUE Program Mindset Performance Value
STAGES Investment
- Price premiums
- Product - Awareness - Stock price
- Price elasticities
- Communications - Associations - P/E ratio
- Market share
- Trade - Attitudes - Market capitalization
- Expansion success
- Employee - Attachment
- Cost savings
- Other - Activity
- Profitability
Program Marketplace Investor
MULTIPLIERS
Quality Conditions Sentiment
- Relevance - Competitive reactions - Market dynamics
- Distinctiveness - Channel support - Growth potential
- Consistency - Customer size and profile - Risk profile
- Cohesiveness - Brand contribution

72. Conclusions
Three helpful brand planning models are:
Competitive brand positioning model
Points-of-parity & points-of-difference
Brand resonance model
Six building blocks: Salience, Performance, Imagery,
Judgments, Feelings, & Resonance
Brand Value Chain
These models can be used …
Qualitatively to guide & interpret possible marketing
actions
Quantitatively to measure marketing effects
72

73. Measuring Brand Equity
73

74. 3) Brand Value Chain Model
A
Comprehensive Marketing Customer Market Shareholder
Set of Brand Activity Mindset Performanc Value
e
Planning
Models
2) Brand Resonance Model
Resonance
Judgments Feelings
Performance Imagery
Salience
1) Brand Positioning Model
Points of Points of
Parity Difference

75. Brand Equity
Measurement System
A brand equity measurement system
A set of research procedures …
designed to provide timely, accurate, and
actionable information …
to help marketers make the best possible
tactical decisions in the short run and strategic
decisions in the long-run.
75

76. Brand Equity Measurement System:
Key Concepts
Brand audits
Assess the health of the brand, uncover its sources of brand
equity, and suggest ways to improve and leverage its equity
Brand charters
Codify brand learnings and provide relevant guidelines within
the company as well as with key marketing partners
Brand equity tracking
Generate baseline information for tactical insights into the
short-term effectiveness of marketing programs and activities
Brand equity reports
Provide descriptive information as to what is happening with a
brand as well as diagnostic information as to why it is
happening
76

77. Brand Audits
A brand audit is a comprehensive examination of a
brand involving activities to:
Assess the health of the brand
Uncover its sources of equity
Suggest ways to improve and leverage that equity
A brand audit requires understanding sources of
brand equity from the perspective of both the firm
and the consumer.
Specifically, the brand audit consists of two
activities:
Brand Inventory
Brand Exploratory
77

78. Brand Inventory
The purpose of the brand inventory is to provide a
complete, up-to-date profile of how all the
products and services sold by a company are
marketed and branded.
For each product, the relevant brand elements
must be identified, as well as the supporting
marketing program. This information should be
summarized both visually and verbally.
Although primarily a descriptive exercise, some
useful analysis can be conducted.
Consistency
78

79. Brand Exploratory
The brand exploratory is research activity designed
to identify potential sources of brand equity.
The brand exploratory provides detailed
information as to what consumers think of and feel
about the brand.
Although reviewing past studies and interviewing
relevant personnel provides some insights,
additional research is often required.
To allow a broad range of issues to be covered and also permit those
issues to be pursued in-depth, qualitative research techniques are
often employed first.
To provide a more specific assessment of the sources of brand
equity, a follow-up quantitative phase is often necessary.
79

80. Brand Charter
Formalize company position and philosophy
into a Brand Charter to provide relevant
guidelines to marketing managers.
Importance of brands and brand equity
History of brand
Brand positioning
Core brand values (POP’s & POD’s)
Core brand promise (brand mantra)
Brand guidelines
Strategic
Tactical
80

81. GE Brand Tools
Brand Strategy: Brand Look & Feel:
GE Brand Book GE Identity Program
81

82. Brand Tracking
Tracking studies involve information
collected from consumers on a routine
basis over time
Often done on a “continuous” basis
Provide descriptive and diagnostic information
Key decisions
What to track
Who to track
When to track

83. Procter & Gamble
P&G measures both the sources and
potcomes of brand equity based on the
resonance model and value chain
EquityScan
For example, they have found a brand-
loyal family pays a $725 premium for a
year’s worth of P&G products versus
private-label or low-priced brands
83

84. Final Thoughts on Metrics
No single number or measure fully
captures brand equity.
Rather, brand equity should be thought
of as a multidimensional concept that
depends on
What knowledge structures are present in the
minds of consumers and
What actions a firm takes to capitalize on the
potential offered by these knowledge structures.
84

85. Final Thoughts on Metrics
There are many different sources of
brand equity & many different possible
outcomes of brand equity depending on
the skill and ingenuity of the marketers
involved.
Different firms may be more or less able
to maximize the potential value of a
brand according to the type and nature
of their marketing activities
85

86. Branding Toolkit II
Conduct mini-brand audit to better
understand positioning
Capture points-of-parity & points-of-
difference
Craft brand mantra
Communicate learnings

87. BRAND POSITIONING WORKSHEET
Consumer
Target
&
Insight
Consumer
Takeaway
Brand
Mantra
Consumer
Need State
&
Competitive
Product Set

88. BRAND RESONANCE WORKSHEET
RESONANCE
JUDGMENTS FEELINGS
PERFORMANCE IMAGERY
SALIENCE

89. Building Strong Brands
89

90. Building
Customer-Based Brand Equity
Must adopt 360° view of customer-
brand interactions
Every brand contact matters
At the heart of a great brand are great
products & services
Great brands go beyond that, however,
to ensure all activities of the
organization enhance brand equity &
profitability
90

91. Marketing Integration
Must mix & match marketing
activities
Different marketing activities can accomplish different
things
Must employ traditional and non-
traditional marketing activities
Must maximize collective
contribution
1+1=?
91

92. Drivers of Brand Equity
Brand elements
Brand name, logo, symbol, character,
slogan ….
Marketing program and activities
Product, communications, channel ….
Secondary associations
Company, other brands, places, people ….
92

93. Brand Elements
A variety of brand elements can be
chosen that inherently enhance brand
awareness or facilitate the formation of
strong, favorable, and unique brand
associations:
Brand Name Character
Logo Packaging & Signage
Symbol Slogan
93

94. Famous Brand Logos
94

95. Brand Elements Choice Criteria
Memorable Adaptable
Easily Recognized Flexible & Updateable
Easily Recalled Protectable
Meaningful Legally
Credible & Suggestive Competitively
Rich Visual & Verbal Transferrable
Imagery Within & Across
Appealing Product Categories
Fun & Interesting Across Geographical
Aesthetics Boundaries & Cultures
95

96. Brand Element Guidelines
Use a collection of brand elements
“Mix and match”
Create a strong brand identity
Visual aesthetic & personality
Slogans are powerful branding
devices
A “hook” or “handle” to positioning
96

97. Leveraging Brand Partnerships
Borrowing appropriate equity from …
Other strong brands
Well-known people
Desirable places & events
Etc.
by understanding …
When equity should reinforce
When equity should augment
How equity can transfer
97

98. Leveraging
Secondary Brand Associations
Ingredients Company
Co-Brands Other Extensions
Brands
Country of
Employees Origin
People Brand Places
Endorsers Channel
Things
Events Causes Endorsements

99. Understanding the
Leveraging Process
Awareness and knowledge of the other
entity
What do consumers know about the other entity?
Transferability of the entity's knowledge
Does any of this knowledge affect what they think
or feel about the target brand when it becomes
linked or associated in some fashion with this other
entity?
99

100. CBBE Brand Resonance Model
as a Guide to Equity Transfer
BRAND ENTITY
RESO- RESO-
NANCE
Transfer of equity NANCE
JUDG- JUDG-
FEELINGS FEELINGS
MENTS MENTS
PERFORMANCE IMAGERY PERFORMANCE IMAGERY
SALIENCE SALIENCE

101. Brand Leveraging Guidelines
Must realize that borrowing equity doesn’t
come for free
Everything can potentially transfer
^&* happens!
Aren’t building your own equity in the process
Must manage the leveraging process as much
as possible to enhance the transfer
Sponsorships usually require 2-3 times more in investments
Must be creative in execution
101

102. Marketing CRITERIA
1. Coverage
Integration 2. Cost
Mail Telephone 3. Direct effects
Mobile Interactive 4. Indirect effect
Direct
Channels Company Stores
Personal Selling Advertising
Offering
Direct
Marketing Personal Product/ Sales
Promotion
Mass
Communi- Services Communi-
Interactive
cations Prices cations Events &
Marketing Experiences
Word-of-mouth Public Relations
Indirect Dept. Store
Discount Store
Channels Specialty Store
Superstore
Supermarket
Catalog Showroom
Convenience Store

103. “Good Value”
Put forth the most compelling
value proposition.
Being seen as low priced or less
expensive is not necessarily the answer
The more important consideration is that
consumers feel that they are getting
appropriate “good value” from a product
or service.
103

104. Perceived Brand Value
Value is basically the sum of all
tangible & intangible costs &
benefits
Benefits include the perceived monetary
value of all the bundle of economic,
functional, and psychological benefits
Costs include monetary costs but also
opportunity costs of time, energy, and any
psychological involvement
104

105. Framing Brand Value
Marketers must optimally balance
the value equation so that
consumers feel the “collective
benefits outweigh the collective
costs.”
Marketers may need to frame the brand’s
costs and benefits so that they are seen in
the most positive light possible
105

106. Channel Issues
A number of possible channel types and
arrangements exist:
Direct channels
Personal contacts by mail, phone, electronic means, in-
person visits.
Indirect channels
Third-party intermediaries such as agents or broker
representatives, wholesalers or distributors, and retailers
or dealers.
106

107. Nike Channel Options
Retail
Nike products are sold in retail locations such as shoe stores, sporting goods stores,
department stores, and clothing stores.
Branded Nike Town stores
Nike Town stores, located in prime shopping avenues in metropolitan centers around
the globe, offer a complete range of Nike products and serve as showcases for the
latest fashions.
Niketown.com
Nike’s e-commerce site allows consumers to place Internet orders for a range of
products.
Catalog retailers
Nike’s products appear in numerous shoe, sporting goods, and clothing catalogs.
Outlet stores
Outlet stores feature discounted Nike merchandise.
Specialty stores
Nike product lines such as Nike Golf and Nike ACG are often sold through specialty
stores such as golf pro shops or outdoor gear suppliers.

108. Channel Issues
Winning channel strategies will be
those that can develop “integrated
shopping experiences” that
combine direct & indirect channels.
Execute channel functions
Maximize channel efficiency, effectiveness,
and dynamics
108

109. Criteria for
Integrating Marketing Channels
Channel efficiency
Coverage
Cost
Channel effectiveness
Direct & indirect SR sales effects
Direct & indirect LR brand equity effects
Channel dynamics
Balanced conflict/competition vs.
coverage/cooperation

110. Integrated Marketing Communications
and Customer-Based Brand Equity
One implication of the CBBE framework
The manner in which brand associations are formed
does not matter
Marketers should therefore evaluate all
possible communication options
Different communication options have
different strengths and can accomplish
different objectives
110

111. Mixing and Matching
Communication Options
Sales-generating and brand-building
What effects are created?
How strong are brand linkages?
How do the effects that are created affect,
directly or indirectly, consumers propensity to
purchase & use the brands?
“Painting a picture”
Brand orchestration
111

112. Class 1 Fluid Milk
California Per Capita Consumption
(gallons)
30
29.4
29 28.7
28
27.6 27.5 27.6 27.5
27 27.1
26.4 26.3 26.2
26 25.9
25.4
Sales 25 24.9
24 24.1
23
22
21
20
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
Year
Change 1993 vs. 1980: 18% decrease

113. Marketing Challenge for Milk
Consumption in California had declined
for decades, recently at an accelerating
rate
Outspent by competitors who were
gaining share
Faced with many negative trends in the
marketing environment
Desperate need to halt the sales erosion
113

114. Development of a
Marketing Strategy
California Milk Processors formed a
commodity board (CMPB)
Conducted thorough “brand audit”
Brand inventory – profile global marketing
milk marketing programs
Brand exploratory – gain consumer insights
114

115. The Consumer Insight
Consumers already knew about the
healthful benefits of milk – wasn’t
motivating
Consumers ration milk as it is often
a shared commodity
Milk is indispensable with certain
foods – essentially an ingredient
115

116. The Strategy
Targeted medium to heavy users
Would focus on attracting new users later
Reminded them that running out of
milk is a real pain
Instead of the joy of “milk with
food,” emphasized the pain of
“food without milk”
Relative deprivation
116

117. California Milk Processor Board
Developed strong TV ad campaign
Smart ad strategy and engaging creative
Clever hook: “Got Milk”
Leveraged ad message
Timely radio, billboards, and P-O-P
Partnered with complimentary
brands
Cookies, cakes, cereal
117

118. The Evolution
Evolved campaign forward to keep
it fresh and compelling
Took misstep with Drysville campaign but
quickly returned
Developed partnerships to
leverage equity of others
Food manufacturers
118

121. 800
780
760
119 mm
740 gallons
720
700
Actual
680 Projected
660
640
620
600
580
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04
got milk?

122. What Makes Great
Brand-Building Communications?
Based on consumer insight &
knowledge
Balanced between creative &
message
Well-branded
Properly integrated
Adequately funded
122

123. The New Communication
Environment
Major shifts in media viewing
habits
Decline of TV advertising
Growing use of DVR’s, video gaming and
internet broadband
Rise of mobile phones as ubiquitous tool
Explosion of blogs and social communities
Events, experience and buzz marketing
123

124. Modern Communication
Programs
Top marketers are cost-effectively
blending …
Traditional, mass media communications
Online, interactive communications
“Real world,” experiential communications
124

125. Integrating
Marketing Communications
Traditional, mass media: greater control
Clearer brand messages
Interactive media: greater
personalization
Highly relevant messages
Reach different segments
Experiences & events: greater activity
Combine brand education with entertainment
125

126. Traditional, Mass Media
Communications
Employ print (magazines &
newspapers) and broadcast (TV
& radio) media
Take advantage of broader
coverage and greater control
Fine-tune and punctuate brand
messages
126

127. Interactive Communications
Web site Social media
Ratings, reviews & (sharing text,
feedback images, audio,
Company-generated video online)
Consumer-generated
Communities &
E-mails & texts Forums
Banner, rich Bloggers (Individuals
media, etc. ads & Networks)
Facebook
Search
Twitter
advertising
YouTube 127

128. Social Media:
Classic Campaign Examples
BMW Films
Dove
“Real Beauty”
128

129. BMW Films
James Bond film placement
GoldenEye
Tomorrow Never Dies
BMW Films
A series of short on-line films using A-list directors and actors where a
central character (Clive Owen) helped people through difficult
circumstances using deft driving skills—in a BMW.
Supported with TV spots that mimicked movie trailers, print and online
advertising, designed explicitly to drive consumers to the BMW Films
Web site.
Nearly 2 million people registered on the site, with 60% of those
registrants opting to receive more information via e-mail. 94% of
registrants recommended films to others, seeding the viral campaign,
and more than 40,000 people voluntarily responded to a survey.
129

130. Dove “Real Beauty”
Dove had been backed for decades by traditional advertising
touting the brand’s benefit of one-quarter moisturizing cream
and exhorting women to take the seven-day Dove test.
A significant shift in strategy occurred for Dove in 2003 with
the launch of the Real Beauty campaign, which celebrates
“real women” of all shapes, sizes, ages, and colors.
The multi-media campaign was thoroughly integrated.
Traditional TV and print ads were combined with all forms of new media, such as
real-time voting for models on cell phones and tabulated displays of results on giant
billboards.
PR was dialed up; paid media was dialed down.
The Internet was crucial for creating a dialogue with women.
A website was launched and supplemented with ad videos
(“Evolution” & “No Age Limit”).
130

131. Interactive Communications
Establish a public voice and presence on
the Web
Complement and reinforce other communications
Ensure innovation & relevance
Remember … not everyone participates
actively in social media
Only some of the consumers want to get involved
With some of the brands they use and, even then
Only some of the time.
131

132. Integrated Marketing
Communications is the Key
No question, some consumers will choose to
become engaged with a brand at a deeper and
broader level
Marketers must do everything they can in the coming years
to encourage them to do so
But regardless, many consumers will choose
not to do so
Understanding how to best market a brand given such
diversity in consumer backgrounds and interests is crucially
important

133. Experiential Communications
Employ multiple touch points &
multiple senses via special
events, contests, promotions,
sampling, etc.
Make a splash, but pick your
spots
Capitalize on real news – even if you
have to make it
133

134. MARKETING COMMUNICATION INTEGRATION
Traditional,
mass media
communications
Online, “Real world,”
interactive experiential
communications communications

135. Mobile Marketing
More mobile phones in the world than
personal computers BUT many are not
smart phones
Limits opportunities (for now), ads as
tiny static billboards
Much action with apps
VW launches GTI with iPhone App
Need easy payment options to be more
than a display medium
135

136. Achieving Resonance
First, must create foundation for
resonance
Proper salience & breadth & depth of awareness
Firmly established points-of-parity & points-of-
difference
Positive judgments & feelings that appeal to the
head & the heart
Then, must optimize four dimensions of
brand resonance
136

137. 1. Behavioral Loyalty
Break down barriers at
purchase &
consumption
Broaden customer
access point
Find appropriate new
distribution outlets
Elicit additional & new
consumption opportunities
137

138. 2. Building Brand Attachment
Stake out emotional
territory
Experiential
Warm, fun or exciting
Enduring
Sense of security, social approval,
or self-respect
Celebrate uniqueness &
make indispensable
Relevance
Immediacy
138

139. Pampers
Pampers evolved from a functional
to an emotional positioning:
Absorbency & dry baby
“Caring for Baby’s Development”
Pampers changed marketing
program accordingly
Advertising etc.
Web site

140. 3. Sense of Community
Allow, facilitate, and
encourage interaction online
& offline with others
Learn from and teach others
Express and observe loyalty
Give them something to talk
about
Product or brand news
Social events
Marketing activities
AXE : “The Axe Effect”
140

141. The “Axe” Effect
AXE Deodorant Body Spray
Guerilla Marketing
Online, created interactive viral
campaign with low-budget videos of
“The Axe Effect” and girls being
exaggeratedly attracted to guys
Offline, placed “enhanced”
emergency exit signs, promotional
black thongs in guys dryers, etc.
On-air, ran racy, award-winning TV
ads
141

142. Consumer-to-Consumer
Equity Transfer
Promotions Sponsorships
Events Experiences
Information
Consumer 1 Consumer 2
Emotions
Blogs Web
sites
Online ads Bulletin
& videos boards
142

143. Building Brand Engagement
Must have people read
about, talk about,
think about, and
engage in activities
with the brand
Create opportunities
for brand involvement
Jeep Jamboree
Queensland Tourism “Best
Job in the World” contest
143

144. Jeep Jamborees & Camps
In addition to the hundreds of local Jeep
enthusiast clubs throughout the world,
Jeep owners can convene with their
vehicles in wilderness areas across
America as part of the company’s official
Jeep Jamborees and Camp Jeep.
Since the inaugural Camp Jeep in 1995,
over 28,000 people have attended the
three-day sessions, where they practice
off-road driving skills and meet other Jeep
owners.
Jeep Jamborees bring Jeep owners and
their families together for two-day off-
road adventures in more than 30 different
locations from Spring through Autumn
each year.
144

145. Tourism Queensland
“Best Job in the World” Contest Winner:
Ben Southall
Tourism Queensland's groundbreaking THE BEST JOB IN THE WORLD
campaign is a PR and viral marketing phenomenon that has generated
worldwide media attention, with over $11 million worth of exposure
and 627 million media impressions in the U.S. and Canada alone.
The concept was simple: post a one-minute video application on TQ’s
Web site explaining why you should be chosen as caretaker of Hamilton
Island on the Great Barrier Reef and you might get to blog and cam your
way through a six-month gig that paid about $100K U.S.
Approximately 34,684 people from more than 200 countries
applied for the job of Island Caretaker.
A social networking frenzy ensued with 336,000 Facebook-referred
Web site visits, more than 3,170 @Queensland followers on
Twitter and over 338 members on the campaign’s Wiki
(islandreefjob.ning.com). 423,000 people voted for their favorite top-
50 finalist.

146. Creating Brand Resonance &
Intense Active Loyalty
Behavioral loyalty
Break down barriers at purchase & consumption
Broaden customer access point
Attitudinal attachment
Stake out emotional territory
Celebrate uniqueness & make indispensable
Sense of community
Allow, facilitate, and encourage interaction online & offline with
others
Give them something to talk about
Active engagement
Have people read about, talk about, think about, and engage in
activities with the brand
Create opportunities for brand involvement

147. Marketing & Resonance
Any marketing activity can affect more
than one dimension of resonance
Interactive or multiple effects
Certain categories allow for more
resonance
Inherently high levels of interest & activities
To maximize brand resonance, increase
the levels of both the intensity & activity
of customer loyalty relationships
147

148. The Duality of Brand Resonance
Intensity of Heirloom Beloved
Relationship Brands Brands
Heritage Brands
Necessity Brands
Utilitarian
Brands
Activity of
Brand Resonance Requires Relationship
Customer Intensity & Activity

149. Branding Toolkit III
Apply the positioning test to your
brand marketing activities
Saliency?
Performance & Imagery?
Judgments & Feelings?
Resonance?
149

150. Brand Growth Strategies
150

151. Growing Brand Equity
Across Categories & Markets
Product development
Brand extensions
Product acquisitions
Market development
New channels & outlets
New geographies
151

152. Brand Architecture Defined
The brand architecture for a firm
reflects the number and nature of
common or distinctive brand elements
(names, logos, etc.) applied to the
different products sold by the firm
How many different brands should be sold by the
firm?
How many different versions of brands should be
sold by the firm?
152

153. Role of Brand Architecture
Brand architecture involves defining both
brand boundaries and brand relationships
Depth of brand strategy
Line extensions
Breadth of brand strategy
Category extensions
Brand architecture should facilitate brand
equity development
Clarify and help brand awareness
Improve consumer understanding by communicating
similarities and differences between products in a brand family
Motivate and help brand image
Maximize transfer of equity to/from parent brand to improve
trial and repeat loyalty 153

154. 154

155. Brand Stretch Successes
Some of the world’s strongest brands
have been stretched across multiple
categories
155

156. But … Don’t Forget the “Spandex
Rule”
“Just because you
can … doesn’t mean
you should!”
Scott Bedbury, formerly
VP-advertising Nike &
VP-marketing Starbucks
156

157. 3 Key Architecture Issues
1. Defining brand potential
What is the brand vision?
How should the brand be competitively positioned?
What are the brand boundaries?
2. Identifying extension opportunities
What products or services will help to achieve that
potential?
3. Organizing brand offerings
How should products and services be branded so that they
achieve their maximum sales and equity potential?
157

158. Brand Architecture Decisions:
1. Defining Brand Potential
Brand vision
What is the higher-order purpose of the brand?
Brand positioning
What strong, favorable, and unique brand associations
(points-of-differences) should exist in the minds of
consumers?
What are the necessary and competitive points-of-parity
required?
What should the essence or core elements of the brand be
(brand mantra)?
Brand boundaries
What products or services should it represent?
What benefits should it supply?
What needs should it satisfy?
158

159. A Consumer-Centered
Brand Vision and Passion
Based on keen consumer &
customer understanding
Find higher-order purpose that is
anchored in …
Consumer aspirations
Brand truths
Transcend physical product
category descriptions and
boundaries
159

160. BEFORE: AFTER:
How many “Colorful Arts &
crayons in Crafts
your box? For Kids?

161. Assessing Brand Potential
What makes a brand
“broad”?
More “abstract” positioning
Able to support higher order
promise
What makes a point-of-
difference
“transferable”? Virgin “satisfying
Associated with a widely unmet customer
relevant benefit needs” cuts across
Supported by multiple RTB’s or
many categories
supporting attributes 161

162. Brand Portfolios
Multiple brands may be employed in a
category to improve market coverage
Target different market segments
Must be careful not to over-brand
Focus on fewer, stronger brands
Basic principle of brand portfolios…
Maximize coverage
Minimize overlap
162

163. GAP Brand Portfolio
PRICE
High
BANANA
REPUBLIC
GAP
OLD NAVY
Low
QUALITY
Low High

164. JOSE CUERVO
BRAND PORTFOLIO
— La Reserva
— Dos Reales
Price
— 1800
— Gold/Margarita Mix
— White
— Authentic
— Rita’s
Knowledge / Experience

166. Brand Architecture Decisions:
2. Identifying Product Opportunities
What new products or services will
help the brand achieve its potential
Must articulate brand vision in terms of new
products and services
Must obtain brand preference for any new
products and services from consumers
166

168. “UNSUCCESSFUL” CATEGORY EXTENSIONS
CAMPBELL’S tomato sauce
LIFESAVERS chewing gum
CRACKER JACK cereal
HARLEY DAVIDSON wine coolers
COCA-COLA C2 cola
HIDDEN VALLEY RANCH frozen entrees
BIC perfumes
BEN-GAY aspirin
KLEENEX diapers
CLOROX laundry detergent
LEVI’S TAILORED CLASSICS suits
NAUTILUS athletic shoes
DOMINO’S fruit-flavored bubble gum
SMUCKER’S ketchup
FRUIT OF THE LOOM laundry detergent

169. Brand Extension Checklist
Does parent brand have strong equity?
Is there a strong basis of fit?
Will extension have necessary points-
of-parity & points-of-difference?
How can marketing programs enhance
extension equity?
What implications will the extension
have on parent brand equity and
profitability?
How should feedback effects best be
managed? 169

170. BRAND EXTENDIBILITY SCORECARD
Allocate points according to how well the new product concept rates on the specific
dimensions in the following areas:
Consumer Perspectives: Desirability
10 pts. _____ Product category appeal (size, growth potential)
10 pts. _____ Equity transfer (perceived brand fit)
5 pts. _____ Perceived consumer target fit
Company Perspectives: Deliverability
10 pts. _____ Asset leverage (product technology, organizational skills, marketing
effectiveness via channels & communications)
10 pts. _____ Profit potential
5 pts. _____ Launch feasibility
Competitive Perspectives: Differentiability
10 pts. _____ Comparative appeal (many advantages; few disadvantages)
10 pts. _____ Competitive response (likelihood; immunity or invulnerability from)
5 pts. _____ Legal/regulatory/institutional barriers
Brand Perspectives: Equity Feedback
10 pts. _____ Strengthens parent brand equity
10 pts. _____ Facilitates additional brand extension opportunities
5 pts. _____ Improves asset base
TOTAL _____ pts

171. Baby Care NBD “Where to Play” Map (North America) June 6, 2002
Laundry Baby Wash /
Strollers/Walkers Beds/Cribs Bedding Shoes Clothing Sun Care Hair Care Skin Care Oral Care
Products Soap
Mattress Toilet Training
Accessories (Potty)
High Chairs Disp Accessories - Bed
Mats, Changing Mats, etc
Infant/Toddler
CarSeats Home Clothing
Diaper Rash Cream
Furnishings
Changing Tables & Travel Personal
Diaper Bags
Cleansing
Videos / Music
Diapers / Wipes
Toys / Books
Stimulation
& Diaper Disposal
Day Care/Baby Learning
Sitting Caring For Diapering Mom Hand
Care Cleaners
Insurance & Your Baby’s & Changing
Other services Odor Eliminator and
Development Air Products
Household Safety
Access Surface Cleaners -
Safety Baby
Clean ‘n Play
Gates / Locks /
Intercoms / Monitors Environment Bibs
Sensors to Locate & Hygiene
Child: safe zone, etc Baby Water
Illness Detection Managing
Sensors: e.g. SIDS, Pregnant/Lactant
vital signs, etc & Treating Feeding, Woman’s Nutrition
Illness Detection Illnesses Nutrition &
Sensors: e.g. ear Infant Juices /
infect., dehydration
Water Drinks
RX Baby Vitamins
OTC Medicine Breast Pads
Wound Patch Re-hydration Prepared/Dried/Other Sterilizing Feeding Access Feeding Access
Breast Pumps Formula Bottles/Nipples
Drinks Pedialite Baby Foods Products Disposables Durables
Legend for Colors: Home Adjacent Far Off Equity Legend for Borders: TBD Fit w/ Pampers In-Market Staffed Project

172. Pampers NBD
“Where to Play” Research
“Caring For Your Baby’s Development”
Home
Diapering & Changing
Adjacent
Baby Environment & Hygiene
Feeding, Nutrition & Water
Personal Cleansing
Far
Clothing
Home Furnishings & Travel
Safety
Managing & Treating Illnesses
172

173. Understanding
Extension Dynamics
Plan optimal sequence of new
product introductions to achieve
brand potential
Grow brand through “little steps”
Understand equity implications of each
extension in terms of POP’s & POD’s
173

174. Brand Architecture Decisions:
3. Organizing Brand Product Offerings
Ensure maximum clarity &
understanding to consumers
& customers
Recognize what they know & want
Appreciate how they will behave
Sub-brand appropriately
Only with distinctive, complementary
benefit; otherwise, use a descriptor to
designate product
Employ full range of brand
elements
Nomenclature, product form, shape,
graphics, color, versioning, etc.
174

175. Brand Hierarchy Structure
Corporate Brand (e.g., Toyota)
Master
Brand
Family Brand (e.g., Lexus)
Sub-
Brand Individual Brand (e.g., LS)
Individual Item or Model (e.g., Hybrid)
175

176. Brand Hierarchy Principles
Principle of growth: Investments in market penetration or expansion
vs. product development should be made according to ROI opportunities
Principle of survival: Brand extensions must achieve brand equity in
their categories
Principle of synergy: Brand extensions should enhance the equity of
the parent brand
Principle of simplicity: Employ as few levels as possible
Principle of clarity: Logic and relationship of all brand elements
employed must be obvious and transparent.
Principle of relevance: Create global associations that are relevant
across as many individual items as possible
Principle of differentiation: Differentiate individual items and brands
Principle of prominence: The relative prominence of brand elements
affects perceptions of product distance and the type of image created for
new products
Principle of commonality: The more common elements shared by
products, the stronger the linkages

177. BMW
"Ultimate Driving Machine"
POP/POD - Luxury
POP/POD - Performance
3 Series 5 Series 7 Series

178. Sub-Branding Effects
Using a sub-brand name can cue a subset of
parent brand information
Can allow for the creation of specific brand beliefs
position the extension in new category
Can facilitate access to associations and attitudes
to the company or family brand as a whole
Can serve as a signal to consumers to expect
differences in new product
Using a sub-brand name can help to protect or
shield the parent brand
BUT sub-brands require investments and
disciplined and consistent marketing to do so
178

179. Branding Strategy Screen
Single Sub-brand: Sub-brand:
Parent Parent Parent New
Brand Primary Secondary Brand
-Parent brand equity highly relevant -Parent brand equity less
& differentiating relevant & differentiating
- More opportunities for positive - Fewer opportunities for positive
feedback for Parent brand feedback for Parent brand
- Little risk of negative feedback to - Greater risk of negative
Parent brand feedback to Parent brand
Evaluate optimal
equity upside and
risk 179

180. The Brand Relationship Spectrum
Sub-brands under House of Brands
Branded House
Endorsed Brands (Invisible Master
(Master Brand) the Master Brand Brand)
Master brand plays a Sub-brands specify Brands are endorsed Brands are
dominant role in the area of operation by the master brand independent of the
driving purchase of the master brand either by using master brand
decisions corporate identity or
Both Master- and Sub- Stand-alone brands
name
Master brand is highly Brand play a role in drive purchase
relevant and driving purchase Master brand transfers decisions
differentiating decisions credibility and positive
associations to the
Master brand provides
endorsed brand
overall credibility
More Less
Similarities to Master Brand

181. Branding
Strategy Implementation
Must apply marketing design elements
and touchpoints according to basic
principles
Principle of prominence: The relative
prominence of brand elements affects perceptions
of product distance and the type of image created
for new products
Principle of commonality: The more common
elements shared by products, the stronger the
linkages
Must understand how to “dial up” or
“dial down” different brand elements.
181

182. Summary
Must apply disciplined, creative
approach to brand architecture – a
classic blend of “art & science”
Three key steps are:
Assessing brand potential
Identifying product and service opportunities to
achieve brand potential
Defining a brand extension roadmap
182

183. Brand Architecture Guidelines
Must adopt strong customer focus
Recognize what they know & want
Appreciate how they will behave
Must avoid over-branding
Too many brands
Must be disciplined
Consistency is key
Flexibility may be need – pure models are rare
183

184. Brand Architecture Guidelines
Strong umbrella family brands are
highly desirable
Maximize synergies & equity flow
Sub-brands can play a specific purpose
Communicates relatedness & distinctiveness
In updating brand hierarchy, must
preserve as much brand equity as
possible
184

185. NIVEA MENTAL MAP
Scent/Feel
Care
Good Value
Blue/White Protection
Heritage NIVEA Mildness
For Family Gentleness
Multipurpose/ Trustworthy/
Universal Reliable
Honest
Simple/Pure

186. Nivea Core Brand Associations
Mild & Gentle
Trusted & Reliable
Friend for a Lifetime
Emotional Bonds
Natural, Accessible Beauty
A Feeling of Well-being for Everyone
Today's Expert in Skin Care
Effective Yet Understandable

187. A Nivea Brand Mantra
Gentle, Mild,
Caring & Protective

188. NIVEA SUB-BRAND POSITIONING
Points-of-Parity Points-of-Difference
Body Pleasant Application Gentle & Caring
Pleasurable Moisturization
Intimacy
Visage Youthful Beauty Science with Confidence
Modern/Contemporary
Sun Protection/Safety Gentle & Caring
Fun/Beach
Bath & Shower Convenience/Cleansing Gentle & Caring
For Men Sensual Image Gentle & Caring
Soothing
Deodorant Efficacy Gentle & Caring
Shampoo Cleansing Gentle & Caring
Appearance

189. NIVEA BRAND HIERARCHY
BDF
NIVEA
Skin Care Personal Care
Creme Body Visage Sun Bath & For Deo Shampoo
(Milk/ Shower Men
Lotion)
Q10
Soft Vital Beauté

190. Creating a Global Brand Footprint
190

191. Establishing Brand Equity
Over Market Segments
1. Identify differences in consumer behavior
How they purchase & use products
What they know & feel about brands
2. Assess relevance of brand positioning
Impact of existing points-of-parity and points-of-difference?
Need for additional points-of-parity and points-of-difference?
3. Adjust branding program
Choice of brand elements
Nature of supporting marketing program
Leverage of secondary associations
191

192. Market Development:
Building a Global Brand
How valid is the mental map in the new market? How
appropriate is the positioning?
What is the existing level of awareness?
How valuable are the core brand associations, points-of-parity,
and points-of-difference?
What changes need to be made to the positioning?
Do any new associations need to be created?
Should any existing associations not be created?
Do existing associations need to be modified?
By what means should this new mental map be
created?
Can the same marketing activities still be employed?
What changes need to be made?
What new marketing activities are necessary?
192

193. Building & Managing
a Global Brand
Adopt a top-down approach: Craft a broadly
relevant global positioning
Pampers – “Caring for Baby’s Development”
Nike – “Authentic Athletic Performance”
Maximize relevance & applicability in different
markets
How does the brand mantra translate in different markets?
Understand specific competitive & consumer
realities
May need to develop separate positioning templates for
fundamentally different types of markets
Developed vs. developing
May need to highlight a specific POP/POD for certain markets
193

194. Ten Commandments of
Global Branding
Understand similarities and differences in the
global branding landscape
Don’t take short-cuts in brand-building
Establish marketing infrastructure
Embrace integrated marketing communications
Cultivate brand partnerships
Balance standardization and customization
Balance global and local control
Establish operable guidelines
Implement a global brand equity measurement
system
Leverage brand elements 194

195. Ten Commandments of
Global Branding
Understand similarities and differences in the global branding landscape.
Have you tried to find as many commonalities as possible across markets?
Have you identified what is unique about different markets?
Have you examined all aspects of the marketing environment (e.g., stages of brand
development, consumer behavior, marketing infrastructure, competitive activity, legal
restrictions)?
Have you reconciled these similarities and differences in the most cost-effective and brand-
building manner possible?
Don’t take shortcuts in brand building.
Have you ensured that the brand is being built from the bottom up strategically by creating
brand awareness first before crafting the brand image?
Have you ensured that the brand is being built from the bottom up tactically by determining
the appropriate marketing programs and activity for the brand in each market given the
particular strategic goals?
Establish marketing infrastructure.
Have you created the appropriate marketing infrastructure—in terms of manufacturing,
distribution, and logistics—from scratch if necessary?
Have you adapted to capitalize on the existing marketing infrastructure in other countries?
Embrace integrated marketing communications.
Have you considered nontraditional forms of communication that go beyond conventional
advertising?
Have you ensured that all communications are integrated in each market and are consistent
with the brand’s desired positioning and heritage?
195

196. Ten Commandments of
Global Branding
Cultivate brand partnerships.
Have you formed partnerships with global and local partners to
improve possible deficiencies in your marketing programs?
Have you ensured that all partnerships avoid compromising the brand
promise and do not harm brand equity in any way?
Balance standardization and customization.
Have you been careful to retain elements of marketing programs that
are relevant and add value to the brand across all markets?
Have you sought to find local adaptations and additions that
complement and supplement these global elements to achieve greater
local appeal?
Balance global and local control.
Have you established clear managerial guidelines as to principles and
actions that all global managers must adhere to?
Have you carefully delineated the areas in which local managers are
given discretion and autonomy in their decision making?
196

197. Ten Commandments of
Global Branding
Establish operable guidelines.
Have you explicated brand management guidelines in a clear and
concise fashion in a document to be used by all global marketers?
Have you established means of seamless communication between
headquarters and local and regional marketing organizations?
Implement a global brand equity measurement system.
Do you conduct brand audits when appropriate in overseas markets?
Have you devised a brand tracking system to provide timely, accurate,
and actionable information on brands in relevant markets?
Have you established a global brand equity management system with
brand equity charters, brand equity reports, and brand equity
overseers?
Leverage brand elements.
Have you checked the relevance of brand elements in global markets?
Have you established visual brand identities that transfer across market
boundaries?
197