Managing Global Brands for Economic Prosperity

8/13/2019 Managing Global Brands for Economic Prosperity

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What Is A Brand?


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A brand is a name, term, sign,symbol, or design, or a combinationof them, intended to identify thegoods or services of one seller orgroup of sellers and to differentiate them from those of competition.

American Marketing Association


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What Is A Brand?

Asset that drives premium pricing and future cash flows

Signal of quality and a trust mark

Relationship

A set of rational and emotional associations that identify anddifferentiate a company or its offer

A form of self expression


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Determinants of Brand Strength

It takes 7 to 10 times the cost and effort to secure a new customer asit does to keep an existing customer

An increase in customer loyalty of only 5% can lift lifetime profits percustomer y as much as !5%

50% of customers are willing to try a new product from a preferredrand ecause of the implied endorsement" credi ility and trust#

Customer Loyalty

andAdvocacy

PremiumPricing

I would buy again

I would highly recommend

I would travel farther

I would wait longer

I would pay more


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Investing In Their BrandsTop 20 Global Marketers

!!" #$pendituresIn %easured %edia

&In 'illions(

!!" #$pendituresIn %easured %edia

&In 'illions(1. Procter & am!le "#$% ' 11. (alt )isney "1$ *+'. ,nilever -$# + 1'. /issan 1$ %

-. eneral 0otors -$ 1' 1-. ohnson & ohnson 1$ #. 2oyota 0otor 3orp. '$ 4 1 . 5onda 1$# '

#. 6ord '$#-% 1#. Altria 1$#1. 2ime (arner '$-%* 1 . 7olkswagen 1$ -#

%. )aimler 3hrysler '$'-+ 1%. Pepsi3o 1$'##

*. 89:real '$1*+ 1*. Pfi;er 1$''44. /estl< 1$%-% 14. 0c)onald9s 1$'1-

1+. Sony 3orp. 1$ * '+. 3oca=3ola 3o. 1$14#

Source: Advertising Age, November 8, 2004


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)ltimately, a brand*s meaning toconsumers represents the sum total

of the consumers* e$periences withthe brand + either through direct orindirect means.


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The Role of Marketing

3reate superior customer experiences that driveunshaka!le loyalty$ advocacy and profita!le revenuegrowth

0anage$ protect$ leverage and enhance !rands

>ngine of innovation and ideas that drives !usiness


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he business enterprise has two +and only two + basic functions-mar eting and innovation. %ar eting

and innovation produce results/ allthe rest are costs.

Peter Drucker


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The Allure of Global Brands

>conomies of scale across multiple markets

,niformity of image

Responsiveness to glo!al customers


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The laws of Branding


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The law of e !ansionthe power of a brand is inversely proportional to its scope

3hevrolet$ 6ord

Am >x ?senior$ student$ mem!ership miles$ optima etc@

8evi9s ?'% different cuts custom fit -1=14B@3rest -* SC,s - B$ today over #+ SC,s '#B

2he power of a !rand is not the sales generated !y the !rand

?competition@:ver;ealous !rand names$ 7aseline intensive care suntan lotion$ illette clear gel antiperspirant


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Star!ucks corp. D a coffee shop that speciali;es in coffee2oys ERF ,s D '+B of toys in ,S ?specialty store or category killer@ Ga!ies ERF,S$ Cids ERF ,S

/arrow the focusD contracting the category not expanding it

Stock in depthD 1+$+++ toys versus -$+++ toys in department storeGuy cheapD makes money !uying

)ominate the category$ 0icrosoft 4#B desktop computer operating systems

$ Hntel *+B microprocessors$ 3oca=3ola %+B of cola

/:CHA ?paper$ chemicals$ ru!!er products$ electronics$ machinery$computers$ mo!ile phones@

"ontra#tiona brand becomes stronger when you narrow its focus


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$ubli#it%the birth of a brand is achieved with publicity not advertising

Gody shopD Anita Roddick traveled the world fro pu!licity pushinideas a!out environmental protection

Star!ucks$ (al=0artD !rands don9t create pu!licity$ people doGest way to generate pu!licityD !e first$ Gand=Aid$ 3//$ 3ompaq$ ore=2ex$ 2ime$ 5ert;$ Ierox$ Play!oy$ Hntel$ 6ast developmentD fax vs internet


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Advertisingonce born a brand needs advertising to stay healthy

Shift from pu!licity to advertising

Should leaders advertiseJ$ 5ein; America9s favorite ketchup

$ Gudweiser$ king of !eers$ 3oca=cola the real thing$ 7isa$ its everywhere you want to !e

Almost every ad makes some type of !etter product claim. (hat

happens when you say our product is the leaderJAdvertising is a powerful tool not to !uild a !rand or leadership!ut to maintain leadership


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Worda brand should strive to own a word in the mind of consumer

0ercedes=Gen;D prestige7olvoD safety

G0(D fun to drive

:wn a category word$ Cleenex is tissue$ 0ake me a Ierox copy$ hand me the Scotch tape

6ed >x in the delivery !usiness ?>mery Air 6reight leader@$ 3>:

narrowed its focus overnight onlyD 6ed >x the generic term forovernight delivery

Granding a prestige product or serviceD$ 0ake it more expensive than competition

$ 6ind a core word for prestige$ 0ercedes E>ngineered like no other car in the worldF


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&ualit%Quality is important but brands are not built by qualityalone

)oes quality keep time !etter than SwatchJ

)oes coca=cola taste !etter than PepsiJ

2here is no correlation !etween success in the market place and comparative testing

6or a powerful !rand !uild a powerful perception of quality in the minds of consumers$ 3ontraction$ name$ price$ 3onventional wisdomD marketing a high quality product at a compara!le priceD

K,A8H2L S2RA2> L$ )eli!erately start at a higher price then find what you can put in the !rand to Mustify

Rolex made watches !igger and heavier 0ont!lanc made pens fatter


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"ategor%a leading brand should promote the category not the brand

Grand new categoriesD Stolischnaya$ 0ercedes=Gen;$ 7olkswage/arrow the focus down to nothing and start something totally new$ 8aunch the !rand in such a way as to create perception that it was the first$ the

leader. )escri!e the word in such a way.

$ Promote the new category$ (hen you are first you can preempt the category the only !rand associated with

the category$ (hen competition appearsJ

3ontinue promoting the category. >xpand the market

3oca cola and Pepsi !oth !enefit from the advertising wars


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'amea brand is nothing more than a name

Ierox

0itsu!ishi ?corporartion$ electric$ motors$ heavy indus.$ chemicaloil$ materials$ estate$ construction etc@


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( tensionsthe easiest way to destroy a brand is put its name oneverything4+B of all new products in the ,S are line extensions ?Gud dry$ lighice@

0anufacturer approachD the volume is going nowhere$ lets increase

!rands to increase sale8ight$ clear$ healthy$ fat=free line extensions meanJ


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)ellowshi!to build the category a brand should welcome other

brands(hen you !roaden a !rand you weaken it3oca=cola & Pepsi=cola

3hoice stimulates demand$ competition makes customers more conscious$increases the noise level$ tends to increase sales in the category

6or each category$ two maMor !rands ?Codak=6uMi$ /intendo=PlayStation@

Similar !usinesses located close together ?Planet 5ollywood 5ard Rock 3afx #B of domestic market


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Generi#one of the fastest routes to failure: give a generic name

eneral 0otors$ eneral >lectric$ eneral 6oods

eneric !rand nameD ina!ility to differentiate from competition?/ature9s Answer$ /ature9s 5er!$ /ature9s Secret$ /ature9s (ay@

Revolutionary and unlikely to !e copied ?Codak$ Ierox@

2ake a regular word and use it out of context to connote theprimary attri!ute of the !rand Glock!uster video

Hntelligent 3hip 3ompany Hntel 3orp. ?Hntelligent 3hip Hnside Hntel Hnside@


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"om!an%brands and companies: there is a difference

3ompany dominatesD 0icrosoft 0icrosoft (ordGrand dominatesD 2ide P&

>qual weightD illette Sensor

Grand names should take precedence over company names

Gest !randing strategy to use the company name as a !rand name? >$ 3oca=cola$ HG0@

3ola itself is 3oca=3ola the real thing$ (hat is E/ew 3okeF

0icrosoft part is redundantD 0icrosoft >xcel = >xcel


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Sub brandswhat branding builds sub branding can destroy

5oliday Hnn wanted to get into the upscale hotel segment

Hnvent a su! !randD 5oliday Hnn 3rowne Pla;a

>very!ody thought it was too expensive for a 5oliday HnnRemained as 3rown Pla;a


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Siblingsthere is a time and place to launch a second brand

A second !rand strategy is not for every company

eneral 0otorsD 3hevrolet$ Pontiac$ Guick$ 3adillac

8et the !rands fight among themselves>ach division !roadened the scope of its !rand$ leading to !randconfusion

Si!ling strategy required top management supervision

2oyota 8exus ?common product area$ rigid distinctions price$different not similar !rand names@


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Sha!ea brand!s logo should be designed to fit the eyes

5ori;ontal shape provides maximum impact for the logo

8egi!ilityD typeface does not express an attri!ute of the!rand.= RolexJ$ Rolls=RoyceJ

2he trademark is often overrated. Ht9s the /ike name thatgives meaning to the Swoosh sym!ol

2here are only a handful of simple sym!ols that makeeffective trademarks ?0ercedes star@


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"oloruse a color that is opposite of the ma"or competitor

3ola is a reddish=!rown liquid$ so it is one of the reasons3oca=cola picked red.

Pepsi picked red for the cola and !lue to differentiate.Poor choice. 2he lack of a unique differentiating colormakes Pepsi invisi!le in the sea of 3oca=cola red.

Pepsi cola is going !lue


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Bordersa brand should know no borders

Ceep the !rand narrow focus in its home country

o glo!al

3rossing a !order adds value to the !rand$ (atches from Swit;erland$ (ines from 6rance$ 3lothing from Htaly

/eed to !e first

2he product needs to fit the perceptions of its country of origin

>xD 0ercedes Gen; Smart = Swatch


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"onsisten#%a brand is not built overnight

2he market is changingN 3hange the !randN$ 2anqueray gin O A!solut & Stolichnaya high end vodkas$ so

2anqueray vodka was created$

7olvo$ why limit to !oring safe sedans$ introduce converti!le sportscars$ dilute safety message

8imit the !rand. Ht has to stand for something simple andnarrow in the mind.


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"hangebrands can be changed only infrequently and very

carefully

3hanging occurs in the mind of consumer

Hf the !rand is weak or non existent in the mind$ change.Hf the !rand has a unique and distinct perceptionchanging is a great risk.

Centucky 6ried 3hicken = C63


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Mortalit%no brand will live for ever

(hat is a CodakJ 3onventional camera andconventional photographic film. 2he market is slowlyshifting to digital photography. Codak is still investing

Codak is investing in digital ?Codak )igital Science@


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Singularit%most important aspect of a brand is its single#mindedness

(hat is a 3hevroletJ A large$ small$ cheap$ expensivecar or truck.

(hat is an AtariJ ,sed to !e a video game$ tried to !e acomputer

Singularity helps a !rand perform its most importantfunction$ Hnstead of a safe car ask for a 7olvo$ Hnstead for a driving machine ask for a G0(


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Managing Global Brands)or Su##ess


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Si Ste!s to Managing Global Brandsfor Su##ess

#stablish'rand

0trategy and

Architecture

1etermine2overnance

0tructure

1efinethe

'rand*s

Identity

#stablisha

1istinctive

Positioning

AlignAll

ouchpoints

%easureand

3eport

Progress

0tep 4 0tep 0tep " 0tep 5 0tep 6 0tep 7


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( am!les

7irgin$ 7irgin Airways$ 7irgin 3ola$ 7irgin Records

G0($ I#$ -'#$ #'#

HG0 2hinkpad

S:/L (alkman

Apple ipod

2ouchstone Pictures

PlayStation

Proctor & am!le$ 2ide$ 3rest$ Pampers

,nilever$ AI>$ )ove$ Ponds

8ouse of 'rands'randed 8ouse 8ybrid 'rand 8ouse


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Alternative Global Branding A!!roa#hes

#$amples

%aster brand S:/L$ G0($ 7irgin$ HG0$0c)onalds$ Star!ucks$ )ell

#ndorser An HG0 3ompany$ HG0 2hinkpadIngredient Hntel Hnside$ Powered !y 5P

0tand9alone 2ouchstone Pictures$ 2ide$ 3rest$PlayStation


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$rofile of the Walt Disne% "om!an%*s Branding

)isney (orld

)isney 2heatrical Productions)isney Hmagineering

)isneyland Resorts

)isney 5and

)isney 3ruise 8ine)isney Radio

)isneyland ParisO2okyo

AG3 2elevision

>SP/Guena 7ista 2elevision0iramax2ouchstone Pictures5ollywood Records

$ore %ssence: &holesome 'amily %ntertainment

Careful application of the 1isney master brand allows it to remain true toits core essence while penetrating new mar ets using stand9alone brands.


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overnance structure must align with and support !randstrategy

)egree of centrali;ation determines level of control andflexi!ility

overnance model must focus on executional challengesand core pro!lems inherent in managing a glo!al !rand

0tep 1etermine2overnance

0tructure


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+rgani,ation Stru#ture

3entrali;ed$ >mphasi;es !rand as a core asset$ 0onitors consistency of !rand

positioning across multiple

markets$ 2ypically involves seniorexecutives and 3>: as !randchampion

$ >nsures adoption of !rand

requirements across organi;ation$ 8imits flexi!ility

)ecentrali;ed$ >mphasi;es flexi!ility and

adaptation to accommodate localneeds

$ 0anaged !y glo!al !rand teamthat seeks support from uppermanagement

$ /o single person EownsF glo!al!rand


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"ore $roblems

6ear of losing local autonomy while !eing held accounta!lefor results

8ack of awareness of the !rand9s shared characteristics andchallenges across markets

Poor communications that restrict idea exchange

8ittle understanding of local marketers9 practices

Hnadequate support from corporate center and inflexi!le andstatic guidelines


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Provides organi;ational touchstone$ !oth internally andexternally

Gasis for strategic roadmap guiding !rand positioning$communications$ !rand extendi!ility

0tep " 1efine the 'rand*sIdentity


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Brand Identit% $rovides Strategi# Dire#tion

'rand #ssenceSummary of the !rand9sidentity the heart and soulof the !rand.

Core Identity

3ore values$ key competencies andassociations that remain consistentacross products$ markets andthrough time.

#$tended Identity

>lements that provide texture andcompletenessQ personality$organi;ation$ product characteristics.


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All Brands Must Arti#ulate Their Brand(ssen#e And Manage It "onsistentl%

Performance$ passion for driving

Authentic$ real$ original

(holesome family entertainment

Hnnovation

,!iquity


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(hat is positioningJ

$ rows out of the !rand9s core identity

$ 2he case you make which esta!lishes your relevance andsuperiority vs. the competition. Ht is the space you want to

occupy on the consumer9s mental map that distinguishesyour !rand while redefining your competitors

0tep 5 #stablish a1istinctivePositioning


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BMW*s Brand $ositioning

'rand #ssence Performance Passion for driving

Core Identity#lements 5eritageOengineering Kuality Styling 8ogo

#$tended Identity#lements

6un Louthful /im!le Status

he )ltimate1riving %achine


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$ositioning "hallenges

Relevance across markets

>nsuring !road understanding across organi;ation

)egree of adaptation permissi!le while !eing true to!rand essence

0anagement of partners in consistent implementation

:ngoing monitoring


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A#hieving "ultural Relevan#e and Authenti#it%

3ultural relevance is all a!out the seemingly small issuesneeded to make !rands feel friendly to a consumer s culture$language$ lifestyle$ ha!its$ values$ etc.

3ultural relevance is more than translationN$ 3ustomers notice Ta!normalities$F whether it9s an Americani;ed way of

writing dates$ tonality of message$ or inappropriate syntax$ graphics$colors$ and many other points of sensitivity.

Achieving cultural relevance starts with development ofcommunications concepts and messaging strategies that aremeaningful glo!ally


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"hallenges in A#hieving -o#al Relevan#e.Merrill -%n#h

ProblemE2agline E2radition of 2rustF did not workin the society where !anks are nottrusted.

0olution

Adapt the tagline to position 08 as aneducator whose experience deservestrust.

%errill Lynch 'ull in 3ussia


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"hallenges in A#hieving -o#al Relevan#e.Allstate

2aking into account 3hina9s Eone=childFpopulation control policy$ the familiarAllstate Egood handsF sym!ol ?whichdepicted a typical two=child Americanfamily@ was modified to reflect the realityof consumers9 lives in 3hina.

%a ing an American 'rand3elevant in China


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"hallenges in A#hieving -o#al Relevan#e."o#a/"ola

(hen 3oca=3ola was first introduced into the 3hinesemarket$ 3hinese characters selected sounded like3oca=3ola !ut actually meant$ E!ite the wax tadpole.F

Hn Russian$ EenMoyF was changed to Edrink$F !ecauseEenMoyF has a particular sensual connotation$ in thatlanguage$ that doesn9t apply to soft drinks.

:eeping he Classic Looand aste ;orldwide


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"hallenges in A#hieving -o#al Relevan#e.Mitsubishi 0$a1ero2

Several years ago$ 0itsu!ishi planned to introduceits popular >uropean S,7$ the EPaMero$F in /orthand South America

Although the word EpaMeroF carries no negativeconnotations in the 3astilian Spanish spoken inparts of >urope$ in 8atin American slang the termhas a seriously derogatory sexual meaning

2he vehicle was renamed and released in theAmericas as the E0onteroF averting a potentialglo!al !randing disaster

Averting a 'randing 1isasterin the Americas


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>very touchpoint with customers or prospects is an opportunity toreinforce the !rand9s position and core messages everywhere the!rand is availa!le.

3ritical to understand and control all touchpoints across the entirecustomer experience from the pre=purchase$ to purchase$ to post=purchase experience.

iven instantaneous availa!ility of information and communications$news of a superior customer experience will travel fast as will newsof a !ad experience or product.

0tep 6 Align Allouchpoints


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3reate an overarching dash!oard on the strength and vitality of the !rand relativeto competitors in each market

0easure interaction with !rand at each touchpoint

Assess premium !rand is capa!le of commanding.

auge level of preference and loyalty for !rand

Reward and recogni;e marketplace successes

Share results across markets and regularly with senior managementRefine strategies and set goals !ased on findings

0tep 7 %easureand 3eport

Progress


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Advi#e

Ge wary of !rand extensionsSeek local market input getout of the ivory tower

/o single approach is right inall instances

>nsure employees areimmersed in your !rand and

understand their o!ligations

Share !est practices andinsights across markets

Align management with your!rand goals

Strategy is a!out makingchoices

Hntensely focus on execution

/ever underestimate the powerof local competitors

Managing Global Brands for Economic Prosperity

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