New Stretegic Brand Management - Chapter 6

Chapter 6:The New Brand Management

Produced by Kevin Almeida

Contents The end of Brands as we new them What will tomorrow’s world be? The new key words of Strategic Brand

Management Targeting for the New Strategic Brand

Management Adapting for new market realities Brand needs brand content


The 10 key principles of Strategic Brand Management

1. A vision that is driven by the desire to change the customer’s life. No brand should be without a strong intangible component.2. Nest all variants and sub-brands under these mega-brands, to

nurture them.

3. Act as a leader and be passionate about increasing the standards of the category.

4. Sustain the brands as a constant flow of innovations in line with their positioning.

5. Create direct ties with your end customers to deepen the link and the attachment.


10 key principles (Cont..)6. Deliver personalized services.

7. Reward customer’s involvement to make them become active promoters of your brand, not simply loyalists. (WOM) – rate of promoters amongst the customer base is directly correlated to the growth rate of the company of the brand.

8. Encourage communities that share of values, on the internet or elsewhere.

9. Quickly globalize the brand and its products.

10. Be responsible: big is not beautiful anymore, and consumers have become cynical about size.


The limits of a certain type of Marketing;

• One dimensional strategy; there comes to

be an imbalance between the additional cost of marginal process, and perceived needs.

• Product development model seems to work for

certain brands: Gillette Razor , P&G

• Incremental improvements are no longer

predictable or meaningful; on the other hand the

increase in price.


The end of brands as we knew them

• Traditional definition – Distinguishing name or symbol, proof of the authentic origin of products, which differentiated them from those of different suppliers. (Aaker, 1991)

• Later – Brands were conceptualized as ‘associations that add value to those already evoked by the product itself’. (Keller, 1998)

• Things go awry when a famous name is badged on an average product, exploiting the gullibility of the masses. This is an easy way to make financial profits by mass prestige brands.


What will tomorrow’s world be?In tomorrow’s world consumers will have to live with economic, political and social parameters bearing on their lives.

• Economic disequilibrium

• Political disequilibrium

• Financial disequilibrium

• Ecological disequilibrium

• Demographic disequilibriumProduced by Kevin Almeida

The co-existence of four mentalities• Four mentalities have been identified, each one with its value hierarchy, mode of conduct, behaviors and type of relationships. (Bonnal, 2008)

1. Tradition – I melt into my community

2. Material Success – Individuals acquire some

freedom from the group

3. Individualism – The individual is the center of

his/her own life

4. Re-Alliance – Asking about the links again Produced by Kevin Almeida

What are tomorrow’s brands?Apple was created in 1976. What makes Apple so loved is;• 35 years of unchanged, meaningful high goals. • Consistency in delivery.• Disruptive innovations.• Optimism and peacefulness. • Holding values and never compromising with

them, even when under pressure. • Epitomizing the company spirit and seeming to

have the strategic touch. Produced by Kevin Almeida

Brands and Price


Beyond the brand essence: Brand Engagement

• The mantra of the traditional brand management is the DNA and genes of the brand. • Brand essence is a static concept. (If one doesn’t

engage consumers, people are less passionate and feel less concerned).

• A brand has no difficulty commanding a higher price if it moved by something other than selling products.


Why does the brand exist? BRANDING – Associating a promise or benefit with a name through repetition of customer direct experience and communication. CHOICE THEORY – To make consumers choose your brand, commenting good about your products and how they will get benefited. • Moving away from cognitive static models of

branding – To energize and social models of branding.– Brands should be conceived of and managed as social

crusade. Produced by Kevin Almeida

Targeting for the new strategic brand management

The Crusaders – who naturally identify with the cause or crusade of the brand.

Nike – Youth sub-culture living in the ghettos. (Just do it)

Absolute Vodka – the New York art gay community

Fans are proselyte consumers. Advocates are also called evangelists. Both are identified by the net promoter score (NPS).


From Brand Activation to Brand Activism

• Modern brand management talks about ‘Brand Activation’. • Values do not exist unless they are activated and

today.


Adapting to new market realities

The Facets

The rise of the shopper A revolution is taking hold of lifestyles in our modern societies

The consumer (The Marketers interest) writes the list of products and brands to buy. It is the shopper who decides on the spot.

Markets are fragmenting and volume too The segment remains a valid notion at a macro economic level;

The car makers create a platform corresponding to each segment, on the basis building different models each aiming at different fragments.


Media Fragmentation

Normal advertising communications now face

a real problem in reaching targets.

People are mostly online or on the phone or on their

plays station.

Ideally TV has to re-demonstrate its ability to be an

audience aggregator.

Sport is an ideal means for reuniting the exploded

audience.


With the internet, the consumer has seized power

Some key figures are useful depict the new world that brands the inhabit;

• More mobile phones are sold world-wide than television

• The premier digital camera are mainly phone brands now.

• Nearly 20% of internet users give their positive opinion on dedicated

internet sites.

• The internet is no longer visionary or prophetic: it is easy, practical,

abounding.

• Blogs have become the truth of the market, the true consumer

magazine.

• Brand websites. Produced by Kevin Almeida

The power of Communities• It is no longer consumers who build brands, but communities. (Bombay Sapphire, Apple)• Community Marketing – Segmenting is a

marketing abstraction designating people with the same profile or the same expectations.

• Community is a living group. • A Community exists, lives, grows and has an

identity. • The community expresses and brings together, it

lives through social medias. Produced by Kevin Almeida

The power of business models• The brand here is not a self-sufficient asset. By itself it can do nothing: it is therefore conditional. • It only produces its effects in interaction with

the business model.


The Enlarged Scope of Brand Management

From Transactions to Relationships

Traditionally marketing focused on consumer behaviour .

Marketing research aimed at identifying attributes that

predict purchase.

Segmentation

Share of requirements, shared loyalty and CRM. Relationship marketing is a financially driven concept.

(Based on the value a customer brings to the company: profitable customers should receive repeated attention).


From purchase to satisfaction and experiential delight• Shift towards post-purchase phenomena is the focus on product / service satisfaction. • A product is always consumed in a context. The

nature of this context affects the degree of this satisfaction that the customer reports.

Bonding through aspirational values• Through brand’s intangible value they help

consumers to forge their identities. • Specify non-product based values such as; ‘Vision’

and ‘Mission’ are typical sources. Produced by Kevin Almeida

Brand Communities• New forms of behaviour have emerged through which brands are enacted, that is, they eventually ‘live’ their values with consumer communities. • Building brand communities is now part of the scope of

brand management (Hagel, 1999)• Four drivers of e-communities (Feather, 2000); internet

based, transaction based, relationship based or fantasy based


Brands need Brand Content• Brand Content is a new paradigm (Bo and Guevel, 2009) and aims at creating an editorial strong experience. [Michelin Story – Page 141]• Gives content to brands, as well as depth and

emotion. This content has to drive attention and become viral.

• Intrusive Marketing is almost dead, Brand Content is now a necessary to get in contact with the customer who walks in search of interesting content of brands.


How co-branding grows the business?• Fundamentally it’s a response to the need for continual growth. • Finding a partner with which to co-create, this is the area of

alliances, partnerships and the networked economy.

Typical situations that lead into co-branding

• Increase the chances of success for a brand’s extension

• When the brand’s image makes it difficult to communicate

• To develop a product line that is often sold

• Response to the fragmentation of the marketProduced by Kevin Almeida

Re-Cap


The end of Brands as we new them What will tomorrow’s world be? The new key words of Strategic Brand

Management Targeting for the New Strategic Brand

Management Adapting for new market realities Brand needs brand content

QUESTIONS


THANK YOU


New Stretegic Brand Management - Chapter 6

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