To Brand or Not to Brand? Concepts and Rules for Building the Killer Brand Chapter 11
Some Important Concepts… • Brand Name: The part of a brand that can be spoken including letters, words and numbers. • Brand Mark: The elements of a brand that cannot be spoken • Brand Equity: The value of company and brands names. • Master Brand: A brand so dominant that it comes to mind immediately when a product category, use, attributes or benefit is mentioned.
Baking Soda Arm & Hammer Adhesive Bandages Band-Aid Rum Bacardi Gelatin Jell-O Soup Campbell’s Cream Cheese Philadelphia Crayons Crayola Petroleum Jelly Vaseline A look at Master Brands
So what is it exactly… • Attributes, benefits, values, culture, personality and user • Research techniques: word associations, personifying the brand, laddering up the brand essence
Benefits of Branding • Branding distinguishes products from competition • Product Identification • Aids in repeat sales • Aids in new product sales • Aids in attracting loyal customers and segments • It is the image, baby!
What is Brand Equity?? A set of assets and liabilities linked to a brand’s name and symbol that add or subtract from the value provided by a product or service to a firm and/ or that firm’s customers. Aaker, David A. (1991), Managing Brand Equity: Capitalizing on the Value of a Brand Name, The Free Press, New York
Loyalty Awareness Brand Equity Competitive Advantage Perceived Quality Associations For more see: Aaker, David A. (1995), Strategic Market Management, 4th ed., Wiley, NY
Benefits of Brand Equity • Leverage when bargaining with distributors and retailers • Charge higher price for product • Launch extensions • Some defense against price wars • Brand valuation
Faithful or Fickle?A look at brand loyalty • Cigarettes 71% • Mayonnaise 65% • Toothpaste 61% • Coffee 58% • Athletic shoes 27% • Canned veggies 25% • Garbage bags 23%
Branding Decisions • Brand or not to brand? • Brand sponsor decision • Brand name decision • Brand strategy decision • Brand repositioning decision
Branding Strategies Brand No Brand Manufacturer’s Brand Private Brand IndividualBrand Family Brand Combi-nation IndividualBrand Family Brand Combi-nation
Line extensions – existing brand to new sizes, forms, flavors etc. Brand extensions – brand names extended to new product categories Multibrands – flanker brands Cobranding – combination of two or more brands New brands Brand Strategy Decisions
Three Questions to Ask • Krispy Kreme • Starbucks
So How do You Do This?? Some tips from “Brand Warfare: 10 Rules for Building the Killer Brand” by David D’Alessandro
R1: It’s The Brand, Stupid • Brand arrogance was once commonplace • Brands that were once invincible are shadows of their former selves (ABC, CBS, NBC) • The consumer revolution • Consumer attitudes changed – don’t trust “big” • Cheaper to enter business and create brands (amazon - $300,000) • Information access for consumers • When the consumer rules, arrogance kills • The power of choice & importance of differentiation
R2: Co dependency can be Beautiful… • People pay attention to brands – they need them • Brands save time • Think OTC drugs • Brands project the right image • “No one can fault you for buying an IBM” • Brands provide an identity • Brand communities (Harley; Ebay); comfort levels
R3: A Great Brand Message is Like a Bucking Bronco – once you are on, don’t let go… • Brand New? Who is it going to be. Brand Old? What is it and where should it go. Which is easier?? • Its not the idea that rules, it’s the execution • Brand message has to speak to consumers • Keep it relevant and consistent
R4: If you want Great advertising, be prepared to fight for it • Beware of flatterers • It is not necessarily good advertising that the client is after • Be memorable • Don’t change the advertising because you are bored with it.
R5: When it comes to sponsorships, there is a sucker born every 30 seconds • Get in for the right reasons • Understand the players • The event organizer, TV Networks, the athletes and their entourages • Look for a balance of power
R6: Don’t Confuse Sponsorship with a Spectator Sport • Use the sponsorship every day in every way • Set the right expectations • Make sure you achieve something measurable and real
R7: Do not allow scandal to destroy in 30 days a brand that took 100 years to build • Brand is destiny • Do not allow your enemies to define you • Do not stall. Do not allow the lawyers to stall. • You can run – but you cannot hide