Whatwillwemention? • What is brand • Understandingbrandmanagementviacocacola • Brandstrategy • Brandextension • Brandentry • Withdrawingproducts • Brandloyalty • Brandvalue • InnovationandBrand
History of BrandManagement The discipline of brand management was started at Procter & Gambleas a result of a famous CEO of P&G by Neil H. McElroy.
WHAT IS BRAND? • Brand is the process by which firms distinguishtheir products from that of their competitors. • A brand can take many forms, including a name,sign, symbol, color, combinationor slogan. • Brands are linked to perceptions • It is well known that in blind product testing, consumersfail to distinguish between brands in each productcategory.
Founded 1892 (1892) Headquarters Atlanta, Georgia, United States Area served Worldwide Key people: Muhtar Kent (CEO) Revenue US$ 35.119 billion (2010) OperatingIncomeUS$8.449 billion (2010) Net income US$11.809 billion (2010) Total assets US$72.921 billion (2010) Total equityUS$31.317 billion (2010) Employees 139,600 (2010)
VS Cocacola is relatedtodomestic, emotionalism Pepsi is associatedwithrebel
6 Levels of Meaning A brand is a complex symbol that can convey up to six levels of meaning (Kotler, 2001). Attributes – good engineering, quality, performance Benefits – feeling of safety, savings, etc. Values – the producer’s values e.g. prestige Culture – the producer’s culture – creativity or efficiency Personality – projection of personality e.g funoraustere User – can suggest the type of consumer who buys it
BrandStrategy Brandstrategy is thespearhead of theorganisation’scompetitiveintentions. How it is positioningitselftocompete. Therearemorechoiceswiththebrand name itself: Having a singlebrandforallitsproducts, e.g. Arçelik, Sony, BekoAdvertisingcost of newproduct is low. A range of apparentlyunconnectedbrandssuch as Procter & Gamble. Seperataly at productgroupbrandstrategyBeymen ; CasaClubhouseholdgoods. Itneedsmoreadvertising in comprasiontointegrative Individualbrand –name strategyWhentheproductvaluereducesothatotherproductsaredamagedbythisevent. Turyağ, Tursil, Yayla, Persil, Vernel.
BrandExtension A brandextension is theuse of an establishedbrand name on a newproduct in thesameproductfieldor in a relatedfield. Thebrand name mightalso be stretchedto an unrelatedproductfieldsuch as Cif Krem, Cif Aktif Krem, CocaCola New Coke, Coca-ColaClassic
InternalandExternalBrandContacts Internalbrandflow Customerfacing Activities Complaintsprocedures Clubs After-sales Repairs Externalbrandflow Rawmaterials Productqualitysourcing Financedeparment R&D function NPDR Communications Activities Sponsorship Ads Direct marketing Databasepromotions T.Brand Brandmanagement ProductionprocessWarehousing Distributionandinformationsystems Packaging SalesforceRetailers/licensees Dealers Point of saleprice
Threekinds of carry-overeffectsmay be relevant: • Expertise • Prestige • Access
Oldbrands, newbrandsandstretchingbrands • Deniz Feneri 1996 “Şehir ve Ramazan” tv. series 1998 NGO Kimse Yok Mu 2002 “Kimse Yok Mu” tv. series 2004 NGO
Determination of Brand-Name • Toinfluence in • Visualimage, • Logo, symbol, • Package, sales • Allothersway
Market Entry Timingtheentrytothe market can makeor break an innovation. Entrytimming has receivedparticularattention. Commonly it is assumedthatearlyentry is desirableandthere is evidencethat “pioneersaccrue” firstmoveradvantages. Pioneers can set thestandards, establish a distinctivequalityposition, takethelead in thetechnology Comingtothe market early, afterthepioneer, can be successful as a follower.
LaunchandContinuingImprovement Closeandconstantmonitoring of thereactions of customers, distributorsandcompetitors is requiredtoinformtheproceedingstrategy.
Thoughtabouthowtheproductandthe market willevolvefromthelaunchmightgiveattentiontothreeareas: 1- Product Platform EvolutionandBrandExtension 2- Market evolution 3- Competitiveevolution
ComputingWithOtherProductsandpositionagain Image is nothing. Thirst is everything. Obey your thirst. Spriteleman-lime flavored 1961 “" 1993
Dasani Turkuaz Perfect-Japan Bonaqua-Europe Ciel-Meksika
BRAND LOYALTY • Brandloyalty is thatcostumershavetendtosameproductany time. • Brandloyalty is concious, not circumstatial. • Behavioralreaction. • Itoccursduringcertain time. • Itdevelopsaftertransaction of makingdecisionandassessment.
AmazingInformation • Coca-cola has strongbrandloyalty not only in Turkey but alsoovertheWorld. • %94 of populationWorld is informed of Coca-Cola. • Theproduct is mostconsumedsecondly as a drinkafterthewater. • Amount of coca-cola in a tickabout 8.000 bottles. (Kırdar, 2003, s: 131). KIRDAR Yalçın. “İşletmelerde Mevcut Ürünlerin Pazarlama Stratejilerinin Oluşturulması”, Yayınlanmamış Yüksek Lisans Tezi, Ege Üniversitesi Sosyal Bilimler Enstitüsü, İzmir, 2003
BrandValue • The code by which the brand lives. The brand values act as a benchmark to measure behaviors and performance.
List of BrandValue 2011 1- Google 44,2 ABD 2- Microsoft 42,8 ABD3- Walmart 36,2 154.32 ABD 4- IBM 36,1 ABD 5- Vodafone 30,6 İNGİLTERE 6- Bank of America 30,6 ABD 7- GE 30,5 ABD 8- Apple 29,5 ABD 9- WELLS FARGO 28,9 136.06 ABD 10- AT&T 28,8 ABD 16- CocaCola 25,8 ABD Coca Cola has dropped out of the top ten for the first time. This is underpinned by the consumer trend in developed markets to move towards healthier, non-carbonated drinksbrandfinance-
List of BrandValue 2001 1. Coca-Cola 68.95 2. Microsoft 65.07 3. IBM 52.75 4. General Electric 42.40 5. Intel 34.67 6. Nokia 35.04 7. Disney 32.59 8. McDonald’s 25.29 9. Marlboro 22.05 10. Mercedes 21.73 • Kaynak: Interbrand Corp.; J.P. Morgan Chase & Co.; Business Week Dergisi; 5-12