MM6016 BRANDING AND MARKETING COMMUNICATION

1. MM6016BRANDING 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 • To build students’ skills in analysis of branding situation using the concept they have learned • To develop decision making skill that enable students to identify alternative solutions and choose the one which can strengthen brand position in the market • 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. Ability to Develop Plan for Branding Decision and Create Mock Ups (brand elements, product, ads and touchpoints) COURSE STRUCTURE Ready as Assistant Brand Manager Understanding of Integrated Marketing Communication for branding 3 Ability to Develop Branding Decision and Strategy Understanding of brand strategy Ability to Identify Brand Problems 2 Ability to conduct Brand Performance Analysis 1 Understanding of Brand, Brand Role, Brand Objectives, Brand Equity, and Brand Management Understanding of Brand Measures Understanding of Brand Analysis Steps and Tools

6. MY SHORT PROFILE:Dr. Reza Ashari Nasution

7. EDUCATION 1994 - 1998 2001 - 2005

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

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

10. LEARNING METHODS

11. EVALUATION 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 syndicate • 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: • John A. Davis, 2010, Competitive Success: how branding adds value, John Wiley & Sons, Ltd. • J.N. Kapferer, 2008, The New Strategic Brand Management, 4th Edition, Kogan Page

14. NEED TO DISCUSS? • Director Room, MBA ITB Building • Call 022-2504308 ext 126 • E-mail reza@sbm-itb.ac.id • BB Pin 21759DAC (no broadcast please) • From Monday to Friday, 8am – 5pm

15. Introduction to Brand • MM6016 Branding and Marketing Communication

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) • 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. • 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. • 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. Brand Roles & Objectives • MM6016 Branding and Marketing Communication

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

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

27. MM6016 Branding and Marketing Communication Brand Classification

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

29. BASED ON BRAND ARCHITECTURE

30. AN EXAMPLE

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

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

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

34. BASED ON GEOGRAPHIC SCOPE • Global brand • Local brand

35. MM6016 Branding and Marketing Communication Brand ARCHITECTURE

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 • GILETTE • OLAY • PAMPERS

38. MM6016 Branding and Marketing Communication Brand RELATIONSHIP SPECTRUM

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

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

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