BUILDING STRONG BRANDS

THREE MODELS FOR DEVELOPING AND

IMPLEMENTING BRAND PLANS

Professor Kevin Lane Keller

Tuck School of Business
Dartmouth College

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 The Concept of
Customer-Based Brand Equity
 Customer-based brand equity
 Differential effect
 Customer brand knowledge
 Customer response to brand marketing

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 Building
Customer-Based Brand Equity
 The initial choices for the brand elements
 Brand name, logo, symbol, character, slogan….
 Marketing and other activities and
supporting marketing programs
 Products, services, communications, channels ….
 Other associations indirectly transferred
to the brand by linking it to some other
entities
 Other companies, brands, places, people ….

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 Benefits of
Customer-Based Brand Equity
 Enjoy greater brand loyalty & be less vulnerable
to competitive marketing actions
 Command larger margins & have more inelastic
responses to price increases and elastic
responses to price decreases
 Receive greater trade cooperation & support
 Increase marketing communication
effectiveness
 Yield licensing opportunities
 Support brand extensions
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 Customer-Based Brand Equity
as a “Bridge”
 Customer-based brand equity
represents the “added value” endowed
to a product as a result of past
investments in the marketing of a
brand.
 Customer-based brand equity provides
direction and focus for planning future
marketing activities

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Three Tools to
Facilitate Brand Planning
 Holistic marketing requires careful planning
and implementation.
 To help guide these efforts, three models of
increasing scope are presented:
1) brand positioning model describes how to guide integrated
marketing to maximize competitive advantages;
2) brand resonance model describes how to create intense,
activity loyalty relationships with customers; and
3) brand value chain model describes how to trace the value
creation process to better understand the financial impact
of marketing expenditures and investments.

http://www.sogiants.com/
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1. Brand Positioning Model
 Kevin Lane Keller, Brian Sternthal, and Alice Tybout (2002),
“Three Questions You Need to Ask About Your Brand,”
Harvard Business Review, September, 80 (9), 80-89.

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 Brand Positioning
 Brand positioning is about how we want target
customers to think about a brand with respect to
competitors
 A strong brand positioning helps guide
organizational activities by clarifying the brand’s
essence, what the brand helps the customer
achieve, and how it is unique in doing so
 Everyone in the organization should understand the brand
positioning and use it as context for making decisions

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Classic Brand Positioning Statement

To ___________________________________________________________________,
(Target Group/Need)

_______________is the brand of __________________________________________.

(Brand) Frame of Reference (Perceptual)

Competing Mainly With ___________________________________________________

Frame of Reference (Competitive)

that ___________________________________________________________________,
(Relevant Differentiating Benefit)

because ______________________________________________________________.
(Reason To Believe)

The Brand Character is: ___________________________________________________

Amazon.com Positioning
For the young at heart who value an infinite amount of
choices, Amazon.com is the virtual cookie jar, competing
mainly with all brick and mortar stores, that gives you’re
the perfect combination of convenience, service, selection
and price, because Amazon.com offers a truly global
selection of products.

Brand Character: Simple, Friendly, Empowering

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Problems with Classical
Positioning Statement
 Ignores possibility of multiple
points-of-difference
 Assumes only 1 key point-of-difference
 Ignores need for points-of-parity
 Doesn’t provide forward-looking
growth platform

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The Four Components of a
Superior Competitive Positioning
 Competitive frames of reference
 Nature of competition
 Target market
 Develop unique brand points-of-difference (POD’s)
 Desirable to consumer
 Deliverable by the brand
 Differentiating from competitors
 Establish shared brand points-of-parity (POP’s)
 Negate competitor points-of-difference
 Demonstrate category credentials
 Brand mantras
 Short 3-to-5 word phrases that capture key POD’s & the irrefutable
essence or spirit of the brand.

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Coca-Cola Positioning
 Competitive frame of
reference
 Colas?
 CSD?
 Non-alcoholic?
 Points-of-difference
 Distinctive taste profile
 Optimistic view of life
 Classic, iconic symbolism &
imagery
 Points-of-parity
 Contemporary, up-to-date
 Refreshing flavor
 Brand slogan
 “Coke Side of Life”
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 Identifying & Choosing
POP’s & POD’s
 Desirable? (consumer perspective)
 Personally relevant
 Believable & credible
 Deliverable? (firm perspective)
 Feasible
 Profitable
 Pre-emptive, defensible & difficult to attack
 Differentiating? (competitive perspective)
 Distinctive & superior
 Sustainable

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Identifying & Choosing
POP’s & POD’s

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Principles Reinforced
By Miller Lite Launch
 Both points-of-parity and points-of-difference
are needed to be well-positioned
 Points-of-parity and points-of-difference are
often negatively correlated
 Points-of-parity are NOT points-of-equality –
there is a zone or range of indifference or
tolerance
 Points-of-parity may even need to be the
focus of marketing communications as the
points-of-difference may be a “given”

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Miller Lite Update
 Miller Lite had experienced flagging sales,
falling behind both Bud Lite and Coors Lite
 Management decides to create a powerful
new position …
 Reaffirm core duality and functional benefit of less filling
& great tasting
 Reinforce strong user imagery and emotional appeal as to
uncompromising character
 By addressing inherent product trade-offs
and linking performance & emotional
equities …
 Sales rise 10% during 2004-2005

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 Goal: Attack American Express & Marginalize
MasterCard
 Strategy: Neutralize & Differentiate
 Point-of-Difference: Acceptability & Convenience
 Point-of-Parity: Status, Prestige, & Cachet
 Tactics
 Larger merchant network
 Gold and platinum cards
 “It’s Everywhere You Want to Be”

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Accenture
Straddle Positioning Strategy
 Accenture is the company that combines:
 Strategic insight, vision, and thought leadership
 Information technology expertise in developing client
solutions
 This strategy permits:
 Points-of parity with its two main competitors, McKinsey &
IBM
 While simultaneously achieving points-of-difference

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Strategy Accenture
& Vision Straddle Positioning
(WHAT they do)

Technology
& Execution
 Accenture Straddle Positioning

McKinsey IBM

Strategy
POP POD
& Vision

Technology &
POD POP
Execution
Proactive, Agile, Accenture
& Passionate Straddle Positioning
(HOW they do it)

Approachable &
Collaborative
 Accenture Straddle Positioning

McKinsey IBM

Proactive, Agile,
POP POD
& Passionate

Approachable
& Collaborative POD POP
Accenture
High Performance. Delivered.

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Accenture
High Performance. Delivered.

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 Communicating & Establishing
POP’s & POD’s
 Create POP’s and POD’s in the face of
attribute & benefit trade-offs
 Price & quality
 Convenience & quality
 Taste & low calories
 Efficacy & mildness
 Power & safety
 Ubiquity & prestige
 Comprehensiveness (variety) & simplicity
 Strength & refinement
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Brand Mantras
 Short 3-to-5 word phrases that capture the
irrefutable essence or spirit of the brand.
 Brand mantra must clearly delineate what
the brand is supposed to represent and
therefore, at least implicitly, what it is not
 Brand mantras typically are designed to
capture the brand’s points-of-difference,
i.e., what is unique about the brand.

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Brand Mantra Examples

 Nike
 “Authentic Athletic
Performance”
 Disney
 “Fun Family
Entertainment”
 American Express
 “Worldclass Service,
Personal Recognition”
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 Brand Mantra Criteria

 Communicate
 A good brand mantra should define the category (or
categories) of business for the brand and set the brand
boundaries. It should also clarify what is unique about the
brand.
 Simplify
 An effective brand mantra should be memorable. As a
result, it should be short, crisp, and vivid in meaning.
 Inspire
 Ideally, the brand mantra would also stake out ground that
is personally meaningful and relevant to as many employees
as possible.

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 Starbucks Mental Map
sophisticated Seattle
wholesome
earth colors coffee
consistent
relaxing

comfortable convenient/everywhere

treat/reward predatory

fresh faddish/trendy
quality
exotic snobbish/pretentious
variety
customized confusing
expensive
 Starbucks
Competitive Positioning
Competitor POP POD
Fast food chains/ —Convenience —Quality
convenience shops —Value —Image
—Experience
—Variety
—Quality
Supermarket brands —Convenience
—Image
(for home) —Value
—Experience
—Variety
Local cafe —Quality —Freshness
—Experience
—Price —Convenience
—Community
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Starbucks Brand Mantra

“Rich, rewarding
coffee experience”

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 STARBUCKS BRAND POSITIONING WORKSHEET
Consumer
Target
Discerning
Coffee Contemporary
Drinker

Consumer
Insight Caring Thoughtful Consumer
Coffee and the Takeaway
drinking Starbucks
24 hour Triple
experience is training of gives me the
Fairly Filtrated
often baristas Responsible,
richest
locally involved Priced water
unsatisfying possible
Brand sensory
experience
Relaxing,
Mantra drinking
Consumer Rich, Rewarding Fresh high
rewarding
Coffee Experience coffee
moments quality coffee
Need State
Totally Varied, exotic
Desire for Rich sensory
integrated consumption Convenient, coffee drinks
better coffee system experience friendly
and a better service Siren
consumption logo
experience Green &
Earth Colors

Competitive
Product Set
Local cafes
Fast food &
convenience
shops
 Some Positioning Guidelines

1. A good positioning has …

• A “foot in the present” &
• A “foot in the future”
2. Evaluate POP & PODs according to:
• Desirable (consumer)
• Deliverable (company)
• Differentiating (competition)
3. Identify crucial POP’s
• Role play competitor’s positioning
• Surface & resolve potential consumer trade-offs
• Assess negative correlations & decision-making styles
4. Ensure duality
• Rational (“Head”)
• Emotional (“Heart”)
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2. Brand Resonance Model
 Kevin Lane Keller (2001), “Building Customer-Based Brand
Equity: A Blueprint for Creating Strong Brands,” Marketing
Management, July/August, 15-19.

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 Create Brand Resonance
with Customers

 Challenge is to ensure customers have

the right types of experiences to create
the right brand knowledge
 Building a strong brand involves a series
of steps as part of a “branding ladder”
 A strong brand is also characterized by
a logically constructed set of brand
“building blocks.”

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 BRAND RESONANCE PYRAMID
Stages of Brand Branding
Building Blocks Objective at
Development
Each Stage

RELATIONSHIPS: Intense,
4 What about you & me? Active Loyalty
Resonance

RESPONSE: Positive,
3 What about you? Accessible
Judgments Feelings Reactions

MEANING: Points-of-Parity
2 What are you? & Difference
Performance Imagery

IDENTITY: Deep, Broad

1 Who are you? Salience Brand
Awareness
 Brand Resonance Pyramid
Terminology

 Salience
 Depth and breadth of brand awareness
 Recognition and recall at purchase and consumption
 Performance
 What the brand does to meet customers' more functional needs.
 Brand performance refers to the intrinsic properties of the brand in terms of
inherent product benefits.
 Imagery
 How people think about a brand abstractly rather than what they
think the brand actually physically does.
 Brand imagery is thus more extrinsic properties of the brand.
 Four important intangible dimensions are:
 Type of user
 Brand personality
 History & heritage
 Experiences
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Brand Resonance Pyramid
Terminology
 Judgments
 Customers overall brand evaluations
 How customers combine performance and imagery
associations to form different kinds of brand opinions
 Feelings
 Customers emotional responses and
reactions to the brand
 Can be mild or intense; positive or negative; or
experiential or enduring in nature.
 Can also relate to the social currency evoked by the
brand.
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 Dimensions of Brand Feelings

Brand feelings can be divided into two broad categories:

 Experiential – immediate, short-lived during purchase/consumption
 Enduring – private, possibly part of day-to-day life

Brands should have one, or ideally both, types of feelings

Experiential Feelings Enduring Feelings

• Warm • Sense of Security (Inner-directed)
Increasing
level of • Fun • Social Approval (Outer-directed)
intensity

• Exciting • Self-Respect (Actualization)

Self-Respect Higher
level of
values &
Sense of Security Social Approval needs

Inner-Directed Outer-Directed
Brand Resonance Pyramid
Terminology
 Resonance
 The extent to which customers feel that
they are “in synch” with the brand
 Intensity or depth of the psychological bond that
customers have with the brand
 Level of activity engendered by this loyalty
 Repeat purchase rates
 The extent to which customers seek out brand information,
events, or other loyal customers
 Etc.

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Sub-Dimensions of Brand Resonance Pyramid

RESONANCE
LOYALTY
ATTACHMENT
COMMUNITY
ENGAGEMENT

FEELINGS
JUDGMENTS WARMTH
QUALITY FUN
CREDIBILITY EXCITEMENT
CONSIDERATION SECURITY
SUPERIORITY SOCIAL APPROVAL
SELF-RESPECT

PERFORMANCE IMAGERY
PRIMARY CHARACTERISTICS & USER PROFILES
SECONDARY FEATURES PURCHASE & USAGE
PRODUCT RELIABILITY, SITUATIONS
DURABILITY & SERVICEABILITY PERSONALITY &
SERVICE EFFECTIVENESS, VALUES
EFFICIENCY, & EMPATHY HISTORY, HERITAGE,
STYLE AND DESIGN & EXPERIENCES
PRICE

SALIENCE
CATEGORY IDENTIFICATION
NEEDS SATISFIED
Brand Resonance Model:
Brand Building Implications
1. Customers own brands
2. Don’t take shortcuts with brands
3. Brands should have a duality
• Performance & imagery
• Judgments & feelings
4. Brand should have a richness
5. Brand resonance provides
important focus
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3. Brand Value Chain Model
 Kevin Lane Keller and Don Lehmann (2003), “How Do
Brands Create Value,” Marketing Management, May/June,
26-31.

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 Brand Value Chain

Marketing Customer Market Shareholder

Program Mindset Performance Value
Investment

- Product - Awareness - Price premiums - Stock price

- Communications - Associations - Price elasticities - P/E ratio
- Trade - Attitudes - Cost savings - Enterprise value
- Employees - Attachment - Expansion success - Market capitalization
- Other - Activity - Market share
- Profitability

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 Brand Value Chain

Marketing Customer Market Shareholder

VALUE Program Mindset Performance Value
STAGES Investment

- Price premiums
- Product - Awareness - Stock price
- Price elasticities
- Communications - Associations - P/E ratio
- Market share
- Trade - Attitudes - Market capitalization
- Expansion success
- Employee - Attachment
- Cost savings
- Other - Activity
- Profitability

Program Marketplace Investor

MULTIPLIERS
Quality Conditions Sentiment

- Relevance - Competitive reactions - Market dynamics

- Distinctiveness - Channel support - Growth potential
- Consistency - Customer size and profile - Risk profile
- Cohesiveness - Brand contribution
 Conclusions
 Three helpful brand planning models are:
 Competitive brand positioning model
 Points-of-parity & points-of-difference
 Brand resonance model
 Six building blocks: Salience, Performance, Imagery,
Judgments, Feelings, & Resonance
 Brand Value Chain
 Value stages & multipliers
 These models can be used …
 Qualitatively to guide & interpret possible marketing
actions
 Quantitatively to measure marketing effects

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Thank You!

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