1

BRAND PLANNING

2

The Concept of Customer-Based Brand Equity

Customer-based brand equity Differential effect Customer brand knowledge Customer response to brand

marketing

3

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 ….

4

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 Bridge between past activities and future

direction

5

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.

6

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.

7

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

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: ___________________________________________________

9

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 the perfect combination of convenience, service, selection and price, because Amazon.com offers a truly global selection of products.

Brand Character: Simple, Friendly, Empowering

10

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

11

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.

12

Coca-Cola Positioning Competitive frame of

reference Colas? 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”

13

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

14

Identifying & Choosing POP’s & POD’s

15

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”

16

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

17

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

Technology & Execution

Strategy & Vision

AccentureStraddle Positioning(WHAT they do)

McKinsey IBM

Strategy & Vision

Technology & Execution

POP

POD

POD

POP

Accenture Straddle Positioning

Proactive, Agile, & Passionate

Approachable & Collaborative

Accenture Straddle Positioning(HOW they do it)

McKinsey IBM

Proactive, Agile, & Passionate

Approachable & Collaborative

POP

POD

POD

POP

Accenture Straddle Positioning

22

Accenture High Performance. Delivered.

23

Communicating & EstablishingPOP’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

24

Strategies to ReconcileAttribute & Benefit Trade-Offs

Design optimal product & services

Establish separate marketing programs

Leverage secondary association (e.g., co-brand)

Re-define the relationship from negative to positive

25

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.

26

Brand Mantra Examples

Nike “Authentic Athletic

Performance” Disney

“Fun Family Entertainment”

American Express “Worldclass Service,

Personal Recognition”

27

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.

28

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”)

29

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.

30

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.”

BRAND RESONANCE PYRAMID

RELATIONSHIPS:What about you &

me?

RESPONSE:What about you?

MEANING:What are you?

IDENTITY:Who are

you?

Intense,Active Loyalty

Positive,AccessibleReactions

Points-of-Parity& Difference

Deep, BroadBrand

Awareness

Resonance

Judgments Feelings

Performance Imagery

Salience

Stages of Brand Development

Branding Objective at Each Stage

1

2

3

4

Building Blocks

32

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

33

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.

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

• Warm

• Fun

• Exciting

Increasing level of intensity

Enduring Feelings

• Sense of Security (Inner-directed)

• Social Approval (Outer-directed)

• Self-Respect (Actualization)

Self-Respect

Sense of Security Social Approval

Inner-Directed Outer-Directed

Higher level of values & needs

35

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.

Sub-Dimensions of Brand Resonance Pyramid

RESONANCELOYALTYATTACHMENTCOMMUNITYENGAGEMENT

JUDGMENTSQUALITY CREDIBILITYCONSIDERATIONSUPERIORITY

FEELINGSWARMTHFUNEXCITEMENTSECURITYSOCIAL APPROVALSELF-RESPECT

SALIENCECATEGORY IDENTIFICATIONNEEDS SATISFIED

PERFORMANCEPRIMARY CHARACTERISTICS &

SECONDARY FEATURESPRODUCT RELIABILITY, DURABILITY

& SERVICEABILITYSERVICE EFFECTIVENESS,

EFFICIENCY, & EMPATHY STYLE AND DESIGN PRICE

IMAGERYUSER PROFILESPURCHASE & USAGE

SITUATIONSPERSONALITY &

VALUESHISTORY, HERITAGE, & EXPERIENCES

37

Brand Resonance Model:Brand Building Implications

1. Customers own brands2. Don’t take shortcuts with

brands3. Brands should have a duality

• Performance & imagery• Judgments & feelings

4. Brand should have a richness5. Brand resonance provides

important focus

38

3. Brand Value Chain Model Kevin Lane Keller and Don Lehmann (2003), “How Do

Brands Create Value,” Marketing Management, May/June, 26-31.

Brand Value Chain

ProgramQuality

MarketingProgram

Investment

CustomerMindset

MarketPerformance

ShareholderValueVALUE

STAGES

- Product- Communications- Trade- Employee- Other

- Awareness- Associations- Attitudes- Attachment- Activity

- Price premiums- Price elasticities- Market share- Expansion success- Cost savings- Profitability

- Stock price- P/E ratio- Market capitalization

MarketplaceConditions

MULTIPLIERS

- Relevance- Distinctiveness- Consistency - Cohesiveness

- Competitive reactions- Channel support- Customer size and profile

- Market dynamics- Growth potential- Risk profile- Brand contribution

InvestorSentiment

40

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

Conclusions