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Part V

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  1. Part V Managing Brand Offer Architecture Managing the Brand Internationaly PSU - 2006 - Global Brand Management - Alain Hutinel

  2. Managing Brand offer Architecture Or How to signify at the same time : . a common reference of brand offerings and . how they differ from each other and . What the Brand stands for. PSU - 2006 - Global Brand Management - Alain Hutinel

  3. B2B B2C Web Trade Local Regional National International Worlwide (meta) Corporate Commercial Non-business (?) Countries Official bodies Charity org. Politics/Polticians … Many different types of brands PSU - 2006 - Global Brand Management - Alain Hutinel

  4. Complex Brand Offer ArchitecturesJean-Noel Kapferer • Product Brand : Exclusive name to a single product to assure individual positionning (Tide, Martini ……) • Line Brand : Extend a concept across different product in segmented market or across similar markets (Renault ….) • Range Brand : Use same name and promise in product categories with same ability (Green Giant …..) • Umbrella Brand : Support products in different markets with each its own promise, Danon • Source Brand : Support sub-brand names as above • Endorsing Brand : Approve/garanty wide variety of product brands, line and range brands GE • Marque : Endorsing (Corporate) Brand ….. PSU - 2006 - Global Brand Management - Alain Hutinel

  5. Brand extension/stretching Why extend ? What is Brand «stretching» ? Where to extend ? Risks Keys to success Fitting … why NOT extend ? PSU - 2006 - Global Brand Management - Alain Hutinel

  6. Why extend brands ? • increasing competition between less & larger players with global aspirations and ability to communicate globally • towards saturation of markets • similarity of brands’ offers attributes • decreasing brand loyalty • react to declining markets • nourish the brand perceived vitality PSU - 2006 - Global Brand Management - Alain Hutinel

  7. What is the brand stretching ? • It is the transfer of brand values on the new market • It shows that the brand is not related directly to one sector but has values that can transcend different products categories PSU - 2006 - Global Brand Management - Alain Hutinel

  8. «Where” Stretching the Brand • same category : no distance extension • new sub-category : short distance extension • new category : middle distance extension • new activity : long distance extension • Geographic expansion PSU - 2006 - Global Brand Management - Alain Hutinel

  9. Dim Brand stretching Comfort, liberty PSU - 2006 - Global Brand Management - Alain Hutinel

  10. Low cost in launching Danone Activ and Talians PSU - 2006 - Global Brand Management - Alain Hutinel

  11. Barilla move into biscuits taste, savor, Italian way of cooking PSU - 2006 - Global Brand Management - Alain Hutinel

  12. Swatch move into jewel Modern, Quality/price, Variety, Innovative design PSU - 2006 - Global Brand Management - Alain Hutinel

  13. Caterpillar moved into shoes and clothing reliable, resistant, masculine PSU - 2006 - Global Brand Management - Alain Hutinel

  14. Taillefine move into biscuits and water Non fat, healthy PSU - 2006 - Global Brand Management - Alain Hutinel

  15. Mars move into ice cream gourmandise, rich, sweet PSU - 2006 - Global Brand Management - Alain Hutinel

  16. Brand stretching risks • Distort/Dilute the values of the Brand • Lose the original consumers PSU - 2006 - Global Brand Management - Alain Hutinel

  17. Chevignon brand dilution modern, adventurous, exquisite PSU - 2006 - Global Brand Management - Alain Hutinel

  18. Pierre Cardin brand dilution PSU - 2006 - Global Brand Management - Alain Hutinel

  19. Keys to success in brand extension Brandidentity Fit Relevance Brand extension Market’s values Added value PSU - 2006 - Global Brand Management - Alain Hutinel

  20. «Fitting» • Perceived brand «typicality», ie product categories which «go well» with the mother brand • Emotional agreement with the potential extension product categories • tested transferability of the brand’s intangibles and of the brand’s «vision», brand’s identity & brand project. PSU - 2006 - Global Brand Management - Alain Hutinel

  21. PSU - 2006 - Global Brand Management - Alain Hutinel

  22. PSU - 2006 - Global Brand Management - Alain Hutinel

  23. The success of pen, lighter, and razors Bic Accessible, practical, disposable PSU - 2006 - Global Brand Management - Alain Hutinel

  24. The failure of Bic perfume The Bic values are not relevant to perfume PSU - 2006 - Global Brand Management - Alain Hutinel

  25. This failure did not dilute the brand essence of Bic. Why ? Because the Bic perfume was coherent with Bic Brand identity Brand extension Brandidentity PSU - 2006 - Global Brand Management - Alain Hutinel

  26. Economic evidences of brand extensions Higher survival rate of products Higher chances of success, due to : . trial rate . conversion rate . loyalty rate (repurchase) Lower launch cost PSU - 2006 - Global Brand Management - Alain Hutinel

  27. Why NOT extend brands ? • Unclear/no Brand Identity • High brand switching pattern • Unwatched Overheads Cost increase • No sufficient resources for success • No sufficient “Fit” and Relevance • …. PSU - 2006 - Global Brand Management - Alain Hutinel

  28. succeeded Adidas cosmetics Harley Davidson cosmetics Colgate toothbrush failed Campbell ketchup Bic parfumes Levi’s suits Xerox computers Clorox washing powder Calgon washing powder Crystal Pepsi un-cola CATEGORY EXTENSIONS PSU - 2006 - Global Brand Management - Alain Hutinel

  29. Procter & GambleClairolHerbal Essences PSU - 2006 - Global Brand Management - Alain Hutinel

  30. IMAGE TRANSFER CLAIROL HERBAL ESSENCES CLAIROL HERBAL ESSENCES PSU - 2006 - Global Brand Management - Alain Hutinel

  31. PSU - 2006 - Global Brand Management - Alain Hutinel

  32. PSU - 2006 - Global Brand Management - Alain Hutinel

  33. IMAGE TRANSFER PSU - 2006 - Global Brand Management - Alain Hutinel

  34. Managing the Brand in the Global Context = Cross-Cultural Branding within the Global Business Strategy Game PSU - 2006 - Global Brand Management - Alain Hutinel

  35. Mega Brands 1 PSU - 2006 - Global Brand Management - Alain Hutinel

  36. Mega Brands ? PSU - 2006 - Global Brand Management - Alain Hutinel

  37. Mega Brands ? PSU - 2006 - Global Brand Management - Alain Hutinel

  38. Mega Brands ? PSU - 2006 - Global Brand Management - Alain Hutinel

  39. Mega Brands ? PSU - 2006 - Global Brand Management - Alain Hutinel

  40. International Branding • What has to be adapted ? • Chinese/Asian Brands • How much Brand origin is important ? • American Dream, …. And next ? PSU - 2006 - Global Brand Management - Alain Hutinel

  41. The View from Honda “We are the most international of the Japanese companies. At the moment we are the most diversified, and we will be more diversified in the future. Still, I think it would be very hard to build a one-type world car. In the end, I don’t think it would be very efficient.” ---Nobuhiko Kawamoto President and CEO, Honda Motor Company PSU - 2006 - Global Brand Management - Alain Hutinel

  42. The View from Toyota Our global strategy used to center on “world cars,” which we would modify slightly to accommodate demand in different markets. Today our focus is shifting to models that we develop and manufacture especially for selected regional markets. Examples North America: Avalon and Camry coupe and station wagon. 1997 Sienna minivan. NUMMI Joint Venture: Tacoma light pickup. Europe: Carina E Southeast Asia: Toyota Utility Vehicle (Kijang in Indonesia, Tamaraw in Philippines) PSU - 2006 - Global Brand Management - Alain Hutinel

  43. - John F. Welch, Jr. "Our vision has been described to you for a decade. We believed that only businesses that were number-one or number-two in their markets could win in the increasingly competitive global arena. Those that could not were to be fixed, closed or sold." Chairman and CEO, General Electric PSU - 2006 - Global Brand Management - Alain Hutinel

  44. Lifestyles are expressions of sub-cultures Signs : icons, indexes & Symbols Heroes Rituals BRANDS ? Values Expressions of cultures A value is a broad Tendency to prefer a certain state of affairs over others PSU - 2006 - Global Brand Management - Alain Hutinel

  45. Value Structure Maps (VSM) and Marketing • The name of the game is to link marketing offer attributes and benefits to cultural values PSU - 2006 - Global Brand Management - Alain Hutinel

  46. 3 Levels of associations • Attributes - concrete - abstract • Benefits/Consequences - functional - psychological • Values - Instrumental - Terminal To be done for the category and each brand in the category PSU - 2006 - Global Brand Management - Alain Hutinel

  47. PSU - 2006 - Global Brand Management - Alain Hutinel

  48. Culture and Consumer Behavior Consumption values • Functional Values. Relate to needs and satisfaction from use and attributes • Social Values. Relate to perceived utility in association with one or several social groups and self-building. Includes symbolic values of products and Brands. • Emotional Values. Relate to emotional arousal linked to contact with or thinking of product/Brand • Epistemic Values.Related to novelty seeking, curiosity arousal, knowledge seeking, innovation drive, variety • Conditional Values. Related to capacity to provide temporary functional or social values PSU - 2006 - Global Brand Management - Alain Hutinel

  49. Athletics Body adornment Cooking Courtship Decorative arts Education Ethics Property rights Religious rituals Etiquette Family feasting Food taboos Language Marriage Mealtime Mourning Music Status differentiation Cultural Universals PSU - 2006 - Global Brand Management - Alain Hutinel

  50. A comfortable life An exciting life A sense of accomplishment A world at peace A world of beauty Equality Family security Freedom happiness Inner harmony Mature love National security Pleasure Salvation Self-respect Social recognition True friendship wisdom Rokeach’s List of Terminal (desired end-state) Values PSU - 2006 - Global Brand Management - Alain Hutinel