Building World-Class Brands For Competitive Advantage

The Total Brand Management Approach

Martin Brandt
President, proBRAND Menlo Park, California Taipei, June 2000

Branding Is About Differentiation

Companies are becoming increasingly differentiated by how well they build and manage their brands.

2000

New Marketing Realities

I used to believe that a good product sold itself.
Phil Knight, Chairman Nike

2000

New Marketing Realities

The computer industry has largely become one that services consumers who use their own discretionary spending to purchase a product, and who apply the same expectations to those products that they have for other household goods. Intel has had to start adjusting to this new reality.
Andy Grove

2000

Brand vs. Product Life Cycles

Brand Life Cycle

Product Life Cycles

Equity Time

2000

What is Brand?

Companies make products but customers buy brands.

2000

What Is a Brand?
Company

Brand

Dell
Dimension XPS D300

Product/sub-brand

Model

Brand: the tangible product plus intangible values, associations, and expectations attached to the product by the customer.
2000

Redefining brand

Brand = Experience

2000

Brand as experience
Economy as a whole is moving toward experience as the place to differentiate and claim economic value.

2000

The progression of economic value

Differentiated Experiences Relevant to

Services Needs of Customers Products

Commodities Undifferentiated Low Value High Irrelevant to

Source: Pine & Gilmore: The Experience Economy

2000

Dell gets it

We believe that the quality and nature of the customer relationship and experience is going to be the next competitive battleground. Michael Dell

2000

Nokia: A World-Class Brand What can we learn from Nokia, the worlds 5th most valuable brand?

2000

Nokia: Brand is Everything

Brand strategy tightly linked to business strategy Design, production and distribution Phone as concept, not a product Focus on emotion and personality to differentiate products Human Technology: We consider our phones the most human.

2000

Nokia: strong CEO support

While technology continues to be a key source of added value, I would like to emphasize that effective marketing and the strength of the Nokia brand creates an increasing portion of the added value.
-- Jorma Ollila

2000

Nokia: Inspiring Vision and Values

Nokia enhances the quality of peoples lives by connecting people. Nokia is commited to the future of wire-free communications in a creative, inspired, human and accessible way. The Nokia Way: customer satisfaction, respect for the individual, achievement, continuous learning

2000

Nokia: Long-term thinking pays off

1991 decided on one brand: Nokia 1992 established 4 primary goals: telecom-oriented, focused, global and value-added 1993 began serious brand building with long-term global commitment:
Downplay technological aspects Emphasize the human role of connecting people Localize

1996 goal: leadership in the most attractive global telecom segments 1999 claims 70% of the profit in mobile phone category

2000

Branding is a business process

Branding is not a communications, advertising or marketing thing (only) Branding is a core, strategic business issue
We know everything we say and do communicates the brand. And for that matter, everything we dont say and dont do communicates the brand. Sergio Zyman (former) CMO, Coca-Cola

2000

Branding The HP Way

Within HP, interest in branding is explodingyet fundamentals of branding are not fully understood throughout HP.
- 1993 Brand Equity Task Force White Paper

Today
Carly Fiorina is challenging employees to rally around the brand and think about product innovation and service delivery in a new way. There is a mandate from the top that the brand be baked into every single piece of communication and into product design. The concept of invention will be extended into everything we do; its the new mantra for the company.
2000

A New Approach is Needed: TBM

Brand building is only as powerful as an organization allows it to be.

TBM (Total Brand Management) is to branding as TQM is to quality.

2000

TBM: A Fresh Approach

Branding, like quality, is a vague, complex concept Brand building, like quality, must be a core business function

2000

TBM: A Fresh Approach

Branding, like quality, is a vague, complex concept Brand building, like quality, must be a core business function Branding, like quality, needs to be planned, systematic, and conscientious Branding, like quality, is part of everybodys job

2000

TBM: A Fresh Approach

Branding, like quality, is a vague, complex concept Brand building, like quality, must be a core business function Branding, like quality, needs to be planned, systematic, and conscientious Branding, like quality, is part of everybodys job Like quality, its possible and necessary to measure branding impact TBM is about a focus on marketplace results, not process
2000

The TBM Framework

Mission

Culture

Values

Commitment/Support

Brand Foundation and Direction

2000

The TBM Framework

Global Mgmt.

Brand Character

Integrated planning Brand System

Measurement

Brand Positioning

Identity

Management and Investment strategy

Brand Strategy and Management

Mission

Culture

Values

Commitment/Support

Brand Foundation and Direction

2000

Microsoft Brand Positioning (1994-99)

Desirable to target audience

Microsoft leads the way in providing access to the new world of thinking and communicating

Not taken/owned by competitors

Done well by Microsoft

Consistent with market trends

Current Products

Current Services

Future Products

Future Services

2000

Image vs. Identity

Brand Image Brand Identity

What you are perceived to be

Based on impressions/ experiences Judgmental and selective Influenced by external events More difficult to manage

What you are

Name, symbol, colors, logotype Personality/character Values Actions/performance/ behavior Can and should be managed

2000

The TBM Framework

Channels of Target Budget communications segments allocation Messages and creative expression Programs: internal/external

Brand Implementation and Tactics

Global Mgmt.

Brand Character

Integrated planning Brand System

Measurement

Brand Positioning

Identity

Management and Investment strategy

Brand Strategy and Management

Mission

Culture

Values

Commitment/Support

Brand Foundation and Direction

2000

TBM Global Branding

Global
Consistency/ Integrity
Values/Mission Positioning Identity

Local
Relevance/ Flexibility
Marketing mix/budget Target audiences Executional messages Organizational support Common practices/policies Global brand champions

2000

Brand -ness
-ness is the state of, condition or quality of being. Successful brands over time achieve a unique -ness that customers recognize, value and respect. Consider: Disney-ness, Nike-ness, Sony-ness, Cokeness, BMW-ness, Marlboro-ness, Swatch-ness... Brand-ness is dynamic and must be consistently managed to maintain or enhance its state of being.

2000

The Real Goals of Brand Development

The ultimate goal of branding -- make choices (and life) simpler. Help make it easier for desirable customers to choose your brand over competitive offerings.

2000

The Key to Success: Create a Brand-Centric Culture

The culture of the organization, more than the procedures or structures, is ultimately what drives the attainment of sustainable (brand) advantage.

Prof. David Aaker, Building Strong Brands

2000