Strategic Brand Management

WELCOME!
Class #10 Fall 03
Soni Simpson

Analysis & Long Term Strategy

Brand Marketing Process

Measure Brand Equity
Financial
Health

Business
Analysis

Marketing
Mix

Market &
Competitive
Trends
Consumer
Insights

SWOTs

Strategic Implications & Strategy Development

Core Competencies, External Opportunities
Brand Vision
Brand Strategy
Strategic Role

Establish
Positioning
Concept

Annual Plan & Execution

Three Year and ANNUAL Objectives

What do I want to Accomplish
Objectives Should be S.M.A.R.T

ANNUAL STRATEGIES
How will the objectives be achieved?

Marketing Plan Execution

Market
Research

Physical Product

Functional Objectives &

Strategies
And Tactical Plan

Consumer &
Retailer Promo
Public
Relations

Package
Pricing
Advertising

Media

Evaluating Brand Extension

Opportunities
WHOS RESPONSIBILITY IS IT TO
REINFORCE THE BRAND???

The Brand
Champion

Evaluating Brand Extension

Opportunities
WHOS RESPONSIBILITY IS IT TO
REINFORCE THE BRAND???

HOW???

Evaluating Brand Extension

Opportunities

Managing Brands Over Time by

Reinforcing Brands
Maintain Consistency
Protecting Sources of Equity
Fortifying vs Leveraging
Fine-Tuning

Stay True
To
Essence
& Insight

Evaluating Brand Extension

Opportunities

Managing Brands Over Time by

Revitalizing Brands

Expand Brand Awareness

Improve Brand Image

ID Additional or New Usage Opportunities

ID New and Completely Different Ways to Use
Reposition the Brand
Change Brand Elements

Entering New Markets

Evaluating Brand Extension

Opportunities

YOUR EXAMPLES of Tired vs Revitalized

Brands

How did you determine the category you

assigned each brand?
Can you revitalize the tired brands?
Prepare thoughts for your final around this
area.

Evaluating Brand Extension

Opportunities
Expanding

Brand Meaning Through

Extensions into New Brands
Lets Talk about Levis.How did they
extend?

Brand Elasticity
Resolving

Up to Greater Relevance > How far will

a brand stretch?
Products
Sub Brands
Categories

Marketing Leadership Council

Evaluating Brand Extension

Opportunities
Levis Case

Discussion

Evaluating Brand Extension

Opportunities
Expanding

Brand Meaning Through

Extensions
Lets Talk about Virgin.How did they
extend?

How is this Different than Sony??

Brand Elasticity

SONY elevates from electronics to entertainment

CD Players, Car
Stereos, MP3 Players,
Yo-Yo Ma, Bob Dylan
Walkman, Epic,

Game consoles
Game controllers
Playstation Magazine
NFL 2002
Speed Punks

Playstation

Flat screen
Records, Xplod,
TVs, DVD
Columbia Records
players, Digital
Wega,
VCRs, Jerry
Music
Games
Columbia
Maguire,
Dawsons Pictures, DVD
TV/
Dream System,
Creek
Tri-Star Movies
entertain

Camcoders
Digital still
cameras,
Online photo
storage

HandyCam
Memory
Stick
Image
Station

ment

Digital
Imaging

Info
Tech
Vaio, Aibo,
Clie

PCs, Notebook
Computers, PDAs,
Software,
Entertainment
robots

Analysis & Long Term Strategy

Brand Marketing Process

Measure Brand Equity
Financial
Health

Business
Analysis

Marketing
Mix

Market &
Competitive
Trends
Consumer
Insights

SWOTs

Strategic Implications & Strategy Development

Core Competencies, External Opportunities
Brand Vision
Brand Strategy
Strategic Role

Establish
Positioning
Concept

Annual Plan & Execution

Three Year and ANNUAL Objectives

What do I want to Accomplish
Objectives Should be S.M.A.R.T

ANNUAL STRATEGIES
How will the objectives be achieved?

Marketing Plan Execution

Market
Research

Physical Product

Functional Objectives &

Strategies
And Tactical Plan

Consumer &
Retailer Promo
Public
Relations

Package
Pricing
Advertising

Media

Evaluating Brand Strategic Role

within a Corporation
#1 UNDERSTAND the brands core
competencies and external opportunities

How do these compare to the the other

brands within the corporation?

How do these compare to the corporate
brand?

Evaluating Brand Strategic Role

within a Corporation

#2 UNDERSTAND the brands vision

How does the brand vision fit with the

corporate vision?
Does it compliment or cannibalize other
brand visions within the corporation?

Evaluating Brand Strategic Role

within a Corporation
#3

UNDERSTAND the single key

strategy for that brand
Growth through acquisition, extension,

subline, new customers, increased usage etc.

Is there an evolution strategy?
How is this strategy different than the other
brands within the corporation?
How does this fit the key corporate strategy?

Evaluating Brand Strategic Role

within a Corporation

#4 DETERMINE the brands Strategic Role within

the Company
WHAT DOES THE BRAND CONTRIBUTE TO THE

CORPORATION?

Which brands are STARgrowth brands?

Which brands are Dog brands?
Which are premium and which are value?
Which enter new markets?
Which protect existing markets?
Which hold on to existing customers?

IS THERE A MIGRATION STRATEGY?

Evaluating Brand Extension

Opportunities
WHOS RESPONSIBILITY IS IT TO
CHAMPION THE BRAND???

MINE

Evaluating Brand Extension

Opportunities

What happens when a

corporation has 7 brands and
several brand champions?
Investment Priorities Made
at the Most Senior Level

What is Brand Management?

Functional Excellence in
Support of the Brand

Firmwide Leadership in
Stewarding the Brand

Locus of Brand Ownership

Locus of Brand Ownership

Brand Managers

Chief Marketing Officer

Corporate Executive Board

Alternative Branding Models

Company
dominates Brands

Company is equal
to Brands

Brands dominate
the Company

American Express (cards)

BMW (Motorcycles)
Colgate (Total toothpaste)
Disney (Films)
General Electric (appliances)
IBM (Technology)
LOreal (Cosmetics)
Sony (Electronics)
Holiday Inn (Crowne Plaza)

Anheuser Busch = Budweiser

Skol (Am Bev)

Claridge Hotel (Savoy)
Crest (P&G)
Healthy Choice (Con-Agra)
Hidden Valley Ranch

Campbell Soup = Godiva

Chrsyler = Jeep
Estee Lauder = Clinique
Kraft = Maxwell House
PepsiCo = Mountain Dew
Time Warner = Warner Bros
3M = Scotch Tape
Marriott = Courtyard

(Clorox)

Kleenix (Kimberly-Clark)
Marlboro (Philip Morris)
MCA Records (Universal
Studios)

Wranlger (VF Jeans)

Kevin Clancy, Copernicus

Product Portfolio Map

Product Profitability
Limited
Focus on

Profitable
Growth
$60,000
$50,000

Sample Brand/Product Portfolio Map

52
51
50

C o n t ro lla b le M a rg in % o f N e t S a le s

Resources

49
48
47
46
45
44
43

$40,000

42

$30,000

41
40

$20,000

39
-150%

$10,000
$0

YAG 52 wk ending
10/01

52 wk ending 10/6/02

Werthers
Riesen
Mambas
Milkfuls
Toffifay

-110%

-70%

-30%

10%
$ S ales % CH YAG

50%

90%

130%

Portfolio of Brands
Where We Are Headed
Professional

Professional/Salon
*INFUSIUM 23

TRESemme

*THERMASILK
*PHYSIQUE

*PANTENE PRO-V

*FRUCTIS
VO5
*LOREAL
STUDIO
LINE
*NEUTROGENIA *VO5
*LOREAL VIVES
*ALBERTO EUROPEEN

Traditional

*SALON SELECTIVES

Contemporary

*FINESSE
*PEARS by SUAVE

PR

E
C
I

*ALBERTO BALSAM
*CLAIROL HERBAL ESSENCE

*PERT

DOWN UNDER NATURALS

*CONTROL LABEL
*WHITE RAIN by TAME

Mainstream

ST IVES

An example
Coroporate Portfolio
Target

Product Focus

Pricing

POD

Brand AE

Younger,
Styling
fashion-conscious
hair-involved
consumers
(primary 18-34)

Mainstream
$2.99- $3.49

Styling expertise
--Customized
--European
--Salon-inspired

Brand Bl

Value consumers,
large families

Value
$1.99 - $2.49

Value
Fun

Brand T

Women 18-49 who Lead with S/C

want better quality
hair care

Premium
$5.99 - $6.99

Professional
quality without
the salon price
tag

Shampoo/
Conditioner

An example
Coroporate Portfolio
Target

Product Focus

Pricing

POD

Brand V

Women 25-54 who Lead with S/C

are hair involved
& treatments;
expand into
styling

Mainstream
$3.49-3.99

Conditioning
Expertise

Brand S

Women 18-49 who

seek practic
al indulgence

Mainstream
$3.49-3.99

Natural efficacy;
Swiss heritage
Broad brand.
Skin Care
presence/equity

Lead with S/C

& treatments;

The Portfolio Brands

C h a r t T i t le
A C B ra n d s
V a lu e
A lb e r t o B a ls a m

M a in s t r e a m

P r e m iu m

S t y lin g E x p e r t is e

N a t u r a l, S w is s

C o n d it io n in g E x p e r t is e

P r o f e s s io n a l

A lb e r t o E u r o p e a n

S t. Iv e s

VO 5

T re s e m m e

Strategic Brand Management

Global Brands & Managing Brands

Over Geographic Borders

Managing Brands Across Borders

FACT:
The World is Shrinking
Technology
Communication
Transportation
Education

Managing Brands Across Borders

WHAT IS
A
GLOBAL BRAND?

Global Brand Examples

Fed

Ex- The World On Time

UPS -Go with the Brown
Celebrex and Viagra
IBM - reinvention w/silicone chip revolution
combining w/biology
Samsung Rose from 42 in 2001 to 25 in 2003 a threat to Sony

WHY?
Commitment to Quality product and holistic global brand
campaign

Managing Brands Across Borders

Clear Consistent Equity/Identity Across
Geographies
Generally positioned the same across
geographies
Essentially the same concept, product,
benefits and advertising approach

Robert L. Wehling, former head of P&G Marketing

Managing Brands Across Borders

WHAT KEY CONSIDERATION Must
We Take Into Account?

Consumer Insight
Recognizing and Accounting for Different

types of consumers in developing marketing

programs

Managing Brands Across Borders

Why Go International?
$$$$$$$$$$$$$$$$$ (money)
Domestic growth issues (slow/competition)
Enhanced Overseas growth
Profit Opportunities
Economies of Scale
Diversify Risk
Global Mobility for Customers
Ego and BHAGs

Managing Brands Across Borders

ADVANTAGES of Global Marketing

Programs

Economies of Scale (production/distribution)

Lower Marketing Costs
Power and Scope
Consistency of Brand Image
Leverage Good Ideas Quickly and Effectively
Uniformity of Marketing Practices

Managing Brands Across Borders

DISADVANTAGES of Global Marketing Programs

Differences in Consumer Insight (Needs, Desires, Wants)

and Usage
Consumer Response Differences
Brand/Product Development and Competitive Environment
differences
Legal Environment inconsistencies
Marketing Media/Infrastructure not the same
Administrative Infrastructure Roadblocks (NIH syndrome
(not invented here))

Managing Brands Across Borders

STANDARDIZATION
vs
CUSTOMIZATION

Strategic Brand Management

THINK GLOBAL
ACT LOCAL

Strategic Brand Management

THINK LOCAL
ACT LOCAL

Strategic Brand Management

Enter the debate on

Brandchannel.com
(Interbrand)

Managing Brands Across Borders

Centralized marketing Strategies that
preserve local customs and traditions can
be a boon for products sold in more than
one country even in diverse cultures
Keller

Global Brand Strategy

Often

Necessary to create different marketing

programs to satisfy different segments
To Build Global Customer Based Brand
Equity, strategically
ID consumer behavior differences
Adjust the branding program accordingly
Leveraging secondary associations most likely will

HAVE to be changed across countries

Global Brand Strategy

Branding

a Country

Are the principles the same as branding a

corporation?
Why would you brand a country?
Tourism
Inward Investment
Export Sales

Global Brand Strategy

Branding

a Country

What countries have good branding and

what ones have poor?

Why?

Global Brand Strategy

Branding

a Country

Germany

Disciplined Quality aura (#2 cars)

Ireland/Scotland

Tiger Club, punch above their weight,

cocky fighters w/illusion of under-dog
(Hollywood training, river Dance, Guiness)

France

Artistry of Life (food/wine and Riveria)

USA

???

Japan
South Africa
Interbrand 2003 paper

Global Brand Strategy

Branding

a Country

Cooperation/Involvement of government,

business, arts, education and media

Understand Target/Consumer Perception
Consult w/opinion leaders
Create a Strategy

Global Brand Strategy

Branding

a Country

Work out a program to make strategy

tangible (ie. Rudolf Giuliani transformed

NYC from scary to one of safest cities)
Create a system to link the organizations
ACTIONS Count

Global Brand Strategy

Weather.com

Extension of The Weather Channel

Founded 1982,
Landmark Communications
Most trusted and well-known weather
source
86MM homes

Global Brand Strategy

Weather.com
One of most visited websites
Launched 1994
18 MM unique users per month
Ranked in top 15 by Nielsen//Net Ratings
July 2003, 20.1MM users, #12th largest site
Terrific Financial Stats
Total YTD 2003 REV 50% > 2002
Ad Revenues on the Rise

Global Brand Strategy

Weather.com

WHATS SO SPECIAL?
Design = Functional Portal, EASY
Delivers Current weather + Forecasts
Weather related info for varying lifestyles
(travelers, gardeners, kids, allergy
sufferers)

Global Brand Strategy

Weather.com

WHATS SO SPECIAL?
Weather Effects US ALL
Provides something for everyone,
resulting in repeat visits
WHAT MIGHT THE INSIGHT BE?
IS IT GLOBAL?

Global Brand Strategy

Weather.com

Expanding Internationally
Weather forecasts in 80,000 locations
already
Now offering geographic and language
specific sites (uk.weather.com,
wetter123.com, meteo123.com,
espanol.weather.com, canaldotemp.com)

Global Brand Strategy

Weather.com

Expanding Internationally
Weather forecasts in 80,000 locations
already
Now offering geographic and language
specific sites (uk.weather.com,
wetter123.com, meteo123.com,
espanol.weather.com, canaldotemp.com)

Global Brand Strategy

Weather.com

Free content and Tools PLUS

Subscription based in 2002
Charging for Notify! Service
Desktop Weather Platinum
Weather.com Gold (Aug 2003)

Global Brand Strategy

Weather.com

Expanding Distribution Form

Opportunities
Leading provider for mobile phones,
Palm pilots, pagers, other wireless
Partnerships w/Yahoo, AOL, Excite,
MSNBC.com

Global Brand Strategy

Weather.com

There will always be weather

People worldwide will always need to

know about it

10 Commandments of Global Brand

1. U/S similarities and differences in the
global branding landscape.
2. Dont take shortcuts.
3. Establish Marketing Infrastructure.
4. Embrace integrated marketing
communications.
5. Cultivate brand partnerships.

10 Commandments of Global Brand

6. Balance standardization and
customizations.
7. Balance global and local control.
8. Establish operable guidelines.
9. Implement a global brand equity
measurement system.
10.Leverage brand elements.
See 14-6

What is Brand Management?

Innovative Analysts
Archeologists
Sociologists
Brand
Politicians
Champions
General Managers
Templar Knights of Equity
Evangelists
Brand Stewards

Strategic Brand Management

Parallel Path Strategic Growth Model

(Sonis Standard Operating Procedure)

Strategic Brand Management

Research Sites
www.dogpile.com
www.findarticles.com

Guiding Focused Strategic Growth

Parallel Path Process
Building
Brands
NOT
Growing
Products

PATH 2:
Weve got a
Business to Run

$
PATH 1:
Strategic Plan
for Long Term
Explosive Growth

Guiding Focused Strategic Growth

Parallel Path Process

Interview ALL
key internal
players, all
vendors, &
buyers/brokers
#1

Review &
analyze
business and
consumer
trends

Full Business Immersion

Path 1: Strat Plan for High Growth

Read all research

on-hand & obtained

Guiding Focused Strategic Growth

Parallel Path Process

#5
#4

SET STRATEGIC PLAN

Full Team Brainstormings

#3

Vision >>Objectives >>Strategies

#2

Brand Essence/Consumer Insight

#1

Full Business Immersion

Path 1: Strat Plan for High Growth

Guiding Focused Strategic Growth

Parallel Path Process

ASK & Listen

#1

Focus on
Immediate
Business
Issues

Ensure All
Priorities &
Deadlines are met

Work Current Plan

Short Term: Running The Business

Guiding Focused Strategic Growth

Parallel Path Process

#5
#4

ADJUST SHORT TERM PLAN

Full Team Brainstormings

#3

Strat & Tactic Successes/Failures

#2

Facts vs Folklore

#1

Work Current Plan

Path 2: ST Running The Business

Guiding Focused Strategic Growth

Parallel Path Process

#5
#4

SET STRATEGIC PLAN

$$

ADJUST SHORT TERM PLAN

Full Team Brainstorm

#3

Vision >>Objectives >>Strategies

Strat & Tactic Successes/Failures

#2

Brand Essence/Consumer Insight

Facts vs Folklore

#1

Full Business Immersion

Work Current Plan

Path 1: Strat Plan for High Growth

Path 2: ST Running The Business

Guiding Focused Strategic Growth

Parallel Path Process

#5
#4
#3
#2
#1

SET STRATEGIC PLAN

$$

ADJUST SHORT TERM PLAN

Full Team Brainstorm

Building
Vision >>Objectives >>Strategies
Strat & Tactic Successes/Failures
Brands
NOT
Brand Essence/Consumer Insight
Facts
vs Folklore
Growing
Full Business Immersion Products
Work Current Plan
Path 1: Strat Plan for High Growth

Path 2: ST Running The Business

Strategic Brand Management

THANK YOU!
YOU HAVE BEEN AN AWESOME
CLASS!
Soni Simpson