Chapter 3Branding Strategy ©2005 Pearson Education Canada Inc.
The Brand “The sum of all characteristics, tangible and intangible, that make the offer unique.” Brand Name Coca-Cola Brand Logo Bottle Design and Red Cap Trademark ™ Legally Protected Marks Brands and organizations spend considerable sums telling customers what they stand for. ©2005 Pearson Education Canada Inc.
Views on Brands “A name, logo, or symbol that evokes in customers a perception of added value for which they will pay a premium price.” John Torella, J.C. Winters Group, Toronto “A product with a personality.” Chris Staples, Rethink, Vancouver Marketing communications in any form has an impact on customers’ perceptions. ©2005 Pearson Education Canada Inc.
Benefits of Branding For customers a brand offers: • A desired level of quality consistently • Psychological rewards from ownership • A means of distinguishing one brand from another The brand image helps crate loyalty. ©2005 Pearson Education Canada Inc.
Benefits of Branding For the company branding offers: • A means of communicating features and benefits • An opportunity to create and sustain an image • Customer satisfaction and repeat purchase opportunity ©2005 Pearson Education Canada Inc.
Brand Loyalty “The degree of consumer attachment to a brand.” Awareness of name, benefit and package Recognition Is useful, consumer will buy if available Preference Insistence Will search for; must have ©2005 Pearson Education Canada Inc.
Brand Equity The value of a brand in its holistic sense to its owners as a corporate asset. Brands have value. Equity is derived from: • Effective marketing strategies • A brand’s status in the marketplace • A brand’s position among customers ©2005 Pearson Education Canada Inc.
The Top 10 Global Brands • Coca-Cola $70.4 • Microsoft $65.1 • IBM $51.8 • GE $42.3 • Intel $31.1 • Nokia $29.9 • Disney $28.0 • McDonald’s $24.7 • Marlboro $22.2 • Mercedes $21.4 The highest ranking Canadian brand is Bombardier but it is not in the top 100 yet. Source: Globe and Mail, July 25, 2003. ©2005 Pearson Education Canada Inc.
Brand Building 1. Identify Brand Values and Positioning Strategy 2. Plan and Implement the Marketing Program 3. Measure and Evaluate Brand Performance 4. Build Brand Loyalty and Brand Equity ©2005 Pearson Education Canada Inc.
Brand Positioning “The selling concept that motivates purchase, or the image that marketers desire a brand to have in the minds of consumers.” A good positioning strategy clearly differentiates a brand from all competing brands. ©2005 Pearson Education Canada Inc.
Positioning Strategy Statements A good positioning strategy statement is: • Clear • Concise • Uncomplicated • Addresses target needs • Communicates a key benefit ©2005 Pearson Education Canada Inc.
Sample Positioning Statement “To reinforce our position in the credit card market, and to establish it as the preferred choice for all future purchases.” VISA All you need ©2005 Pearson Education Canada Inc.
The Importance of Positioning Market Analysis Target Market Analysis Competitor Analysis Positioning Strategy Product Strategy Price Strategy IMC Strategy Distribution Strategy ©2005 Pearson Education Canada Inc.
Positioning Strategies • Product Differentiation • Brand Leadership • Head-On • Innovation • Price (Value) • Channel Advantage • Image (Lifestyle) ©2005 Pearson Education Canada Inc.
Branding and IMC There are two key decision areas: • Determining the appropriate brand elements to focus on (names, packaging, symbols and characters). • Devising an effective marketing communications strategy to communicate the brand’s values and positioning strategy. ©2005 Pearson Education Canada Inc.
Packaging and Brand Image A good package design helps build a brand. • The “look” of a package must be instilled in the customer’s mind. • A package can differentiate one brand from another. • Familiarity with a package creates trust with customers. • New packages create new products (product forms). ©2005 Pearson Education Canada Inc.
Roles of Packaging A good package serves three primary functions: • Protect the product • Market the product • Provide convenience to distributors and consumers ©2005 Pearson Education Canada Inc.
Branding by Design Shopping goods and durable goods rely more on “style” to create and sustain an image. • Lifestyle characteristics now play a key role in design. • Goods are periodically redesigned to present a contemporary image. • Re-branding strategies require intensive marketing communications to identify changes. ©2005 Pearson Education Canada Inc.