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Jack Buckner

Strategic Brand ManagementStrategic Brand Management

Exeter MBA and MSc Exeter MBA and MSc Day 5Day 5

Brand ManagementBrand Management

TodayToday

Brand Management lectureBrand Management lecture

Branding and nostalgiaBranding and nostalgia

The role of the Internet in BrandingThe role of the Internet in Branding

Icon management, celebrity and sponsorshipIcon management, celebrity and sponsorship

Global Brand FaceGlobal Brand Face--OffOff

Implementation and conclusionImplementation and conclusion

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Remember the Graveyard ModelRemember the Graveyard Model

Low

High

High

Recognition

Recall

Niche Brand

Graveyard

Source: Y & R

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Out of the GraveyardOut of the Graveyard

Aga Foodservice

High brand recognition

Low brand salience

Identified younger

target market

Product range

refreshed

Brand/marketing

investment

Graveyard ModelGraveyard Model

Illustrates the difference between Illustrates the difference between

recognition and saliencerecognition and salience

Works best for heritage brandsWorks best for heritage brands

Much harder for mass and discount brandsMuch harder for mass and discount brands

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Heritage and the Graveyard modelHeritage and the Graveyard model

Graveyard brands HAD high equity in the Graveyard brands HAD high equity in the

pastpast

The challenge is to rejuvenate themThe challenge is to rejuvenate them

Heritage brands are authenticHeritage brands are authentic

Play off authenticity and nostalgiaPlay off authenticity and nostalgia

Make them relevant todayMake them relevant today..

Why is heritage so powerful?Why is heritage so powerful?

Brands have deep meaningsBrands have deep meanings

Symbols of identitySymbols of identity

Authenticity works with almost all Authenticity works with almost all

consumer groupsconsumer groups

Personal nostalgia Personal nostalgia youthyouth

Communal nostalgia Communal nostalgia triggered by eventstriggered by events

Old brands link to an idealized pastOld brands link to an idealized past

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Teaching Old Brands New TricksTeaching Old Brands New Tricks

Allegory Allegory symbolic storiessymbolic stories

Arcadia Arcadia idealized pastidealized past

Aura Aura powerful sense of authenticitypowerful sense of authenticity

Antinomy Antinomy a paradox (contrast between a paradox (contrast between

technological progress and desire for a technological progress and desire for a

slower pace of life)slower pace of life)

Brown, Sherry & Kozinets Journal of Marketing 2003

The VW BeetleThe VW BeetleAllegory stories about the

Beetles past, the peoples car

Arcadia idealized sixties

communities, advertising

campaigns, less flower, more

power.

Aura recreating original

symbols and references in a

contemporary manner

Antimony paradox between

the retro-past and techno-

design in the product/brand

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What brands can be revived?What brands can be revived?

There must be a brand story, relatively There must be a brand story, relatively

undisturbed by recent marketing attentionundisturbed by recent marketing attention

Some vital essence or iconic momentSome vital essence or iconic moment

Capable of mobilizing a vision linked to Capable of mobilizing a vision linked to

communitycommunity

Open to technological and symbolic updatesOpen to technological and symbolic updates

Nostalgia Brands?Nostalgia Brands?

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Risks with nostalgiaRisks with nostalgia

Brands can appear old and irrelevantBrands can appear old and irrelevant

Impact on existing brand activityImpact on existing brand activity

Lose touch with existing consumersLose touch with existing consumers

Wrong place, wrong timeWrong place, wrong time

What new brands have

emerged through the

Internet?

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Google

Ebay

Friends Reunited

Amazon

Yahoo!

Information brands, trust brands, transaction

brands but not consumer brands

What new consumer goods

brands have emerged via the

Internet?

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Functions the Internet enables Functions the Internet enables

Consumer choiceConsumer choice

Search for valueSearch for value

Information provisionInformation provision

GamblingGambling

EntertainmentEntertainment

Acquire knowledgeAcquire knowledge

TradeTrade

Beyond Online Search: The road to Beyond Online Search: The road to

profitabilityprofitability

SEARCH

(alternatives)

EVALUATE

(alternatives)TRANSACT

Purchase risk

Purchase frequency

Function v Value

Provision of expertise

High v Low Touch

High v Low Content

Practicality

Purchase Process v

Purchase as an end

Zeng & Reinartz: California Management Review Winter 2003

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77--eleveneleven

FedExFedEx

UPSUPS

SpecializationSpecialization

ScaleScale

FeeFeeTransaction stageTransaction stageLogistic operatorLogistic operator

PaypalPaypal

QRSQRS

Deep process & industry Deep process & industry

knowledgeknowledge

SkillSkill

ScaleScale

Standard setting Standard setting

Technology Technology

enablingenabling

Transaction stageTransaction stageTransaction Transaction

facilitatorfacilitator

Consumer Consumer

ReportReport

Morgan adviceMorgan advice

USwitchUSwitch

Unique content Unique content

Independence and trust Independence and trust

SpecializationSpecialization

ReliabilityReliability

SubscriptionSubscription

Pay per usePay per use

Fee from third Fee from third

partyparty

Fee for expertiseFee for expertise

Evaluation stageEvaluation stageExpertise providerExpertise provider

YahooYahoo

GoogleGoogle

ComparanetComparanet

Assembling skillsAssembling skills

Economies of scaleEconomies of scale

Network effectsNetwork effects

Winner take allWinner take all

AdvertisingAdvertising

Lead generationLead generation

Information stageInformation stageNavigatorNavigator

SonySony

DellDell

LandLands Ends End

CiscoCisco

Economies of scale Economies of scale

DifferentiationDifferentiation

BrandingBranding

Understanding of demandUnderstanding of demand

Integration of Integration of

online/offline operationsonline/offline operations

Product MarginProduct Margin

Brand premiumBrand premium

All three stagesAll three stagesProduct originatorProduct originator

EXAMPLESEXAMPLESCOMPETITIVE COMPETITIVE

ADVANTAGE ADVANTAGE

THROUGHTHROUGH

REVENUE REVENUE

MODELMODEL

CONSUMER CONSUMER

STAGE STAGE

TARGETEDTARGETED

BUSINESS BUSINESS

MODELMODEL

slowslowlowlowlowlowlowlowBEAUTYBEAUTY

High search / low transactionHigh search / low transactionlowlowlowlowhighhighREAL ESTATEREAL ESTATE

fastfastLow/high potentialLow/high potentialLow / high Low / high

potentialpotential

highhighINSURANCEINSURANCE

fastfasthighhighhighhighhighhighFLOWERSFLOWERS

fastfastLow / high Low / high

potentialpotentialhighhighhighhighTELECOM TELECOM

PROVIDERSPROVIDERS

fastfasthighhighhighhighhighhighTRAVEL TRAVEL

fastfasthighhighmediummediumhighhighCOMPUTER COMPUTER

HARDWAREHARDWARE

fastfasthighhighhighhighhighhighMUSICMUSIC

fastfasthighhighhighhighhighhighBROKERAGEBROKERAGE

Slow (only bestsellers)Slow (only bestsellers)lowlowlowlowlowlowNONNON--BUSINESS BUSINESS

BOOKSBOOKS

fastfasthighhighhighhighHigh High BUSINESS BOOKSBUSINESS BOOKS

slowslowlowlowlowlowLow Low GROCERYGROCERY

Medium migrationMedium migrationLow / high Low / high

potentialpotential

Low / high Low / high

potential potential

Low / high Low / high

potentialpotential

USED CARSUSED CARS

faster migration possiblefaster migration possiblelow / mediumlow / mediumlow / mediumlow / mediumhighhighNEW CARSNEW CARS

slowslowlowlowlowlowlowlowLUXURY GOODSLUXURY GOODS

slowslowlowlowlowlowlowlowFURNITUREFURNITURE

CONCLUSIONCONCLUSIONTRANSACTTRANSACTEVALUATEEVALUATESEARCHSEARCH

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CustomatixCustomatix.Com.Com

Customised footwear on the webCustomised footwear on the web

Design your own shoesDesign your own shoes

Delivered to you within 14 days for $85Delivered to you within 14 days for $85

Minimal supply chainMinimal supply chain

The failure of The failure of CustomatixCustomatix.Com.Com

Attracted an influential core consumerAttracted an influential core consumer

but not enoughbut not enough

Underestimated marketing costsUnderestimated marketing costs

Can you evaluate footwear onCan you evaluate footwear on--line?line?

Would you transact for customised footwear Would you transact for customised footwear

onon--line?line?

Undercharged for the productUndercharged for the product

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Internet implications for brand managementInternet implications for brand management

Internet needs to be integrated into overall brand Internet needs to be integrated into overall brand strategystrategy

.And overall corporate strategy.And overall corporate strategy

Potential organizational transparency (BPotential organizational transparency (B--toto--B)B)

New consumer groupsNew consumer groups

Alternative communitiesAlternative communities

Potential to build more complex storiesPotential to build more complex stories

Distribution implicationsDistribution implications

Alliance and alternative partners implicationsAlliance and alternative partners implications

Brand stretchingBrand stretching

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Branding on the InternetBranding on the Internet

Is still in its infancyIs still in its infancy

Are the new communities emerging?Are the new communities emerging?

What are the implications for traditional What are the implications for traditional

branding and marketing?branding and marketing?

Branding, celebrity and sponsorshipBranding, celebrity and sponsorship

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The evolution of an industryThe evolution of an industry

Sponsorship Sponsorship increase brand awareness increase brand awareness

linked to a person or an eventlinked to a person or an event

Evolved into alliance of brand valuesEvolved into alliance of brand values

Brand alliancesBrand alliances

Celebrity brandsCelebrity brands

Evaluation CriteriaEvaluation Criteria

What are you trying to achieve?What are you trying to achieve?

How does it fit within your overall strategy?How does it fit within your overall strategy?

What brand synergies exist?What brand synergies exist?

What budgets are you prepared to allocate?What budgets are you prepared to allocate?

What timescale are you committed too?What timescale are you committed too?

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Sponsorship alternativesSponsorship alternatives

Linked to individual Linked to individual Strong personal connectionsStrong personal connectionsIndividual Individual

Difficult to changeDifficult to changeLong term brand building in Long term brand building in

specific communityspecific community

VenueVenue

Legal, time, risk of Legal, time, risk of

reactionreaction

Cheaper and can be effectiveCheaper and can be effectiveAmbushingAmbushing

Team performanceTeam performanceSpecific audienceSpecific audienceTeamTeam

Cost and limited Cost and limited

saliencesalience

Mass audienceMass audience

Distinctive valuesDistinctive values

Cultural eventCultural event

Awareness, limited Awareness, limited

salience without salience without

communicationcommunication

Mass audienceMass audience

Strong valuesStrong values

Sports eventSports event

ConsiderationsConsiderationsAdvantagesAdvantagesActivityActivity

Sponsorship trends and considerationsSponsorship trends and considerations

Tighter restrictions around eventsTighter restrictions around events

Proliferation of multiple sponsorships Proliferation of multiple sponsorships ownershipownership a dying concepta dying concept

Difficulty of standing out in the clutterDifficulty of standing out in the clutter

Increased consciousness of image rightsIncreased consciousness of image rights

Increased costs to major events / individualsIncreased costs to major events / individuals

Increasing popularity of nonIncreasing popularity of non--traditional events and traditional events and alternative activitiesalternative activities

Expect to spend as much again on communicationExpect to spend as much again on communication

Importance to link into overall brand strategyImportance to link into overall brand strategy

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Brought to you by Brand A and Brought to you by Brand A and

Brand BBrand B

US sponsorship from $2.5 billion in 1990 to US sponsorship from $2.5 billion in 1990 to $8.7 billion in 2000$8.7 billion in 2000

Multiple brand sponsorship has complicated Multiple brand sponsorship has complicated spilloverspillover effectseffects

Controversial sponsors can lower evaluation Controversial sponsors can lower evaluation of less established events and other of less established events and other sponsorssponsors

Stronger events more capable of supporting Stronger events more capable of supporting controversial sponsorscontroversial sponsors

Ruth & Simonin Journal of Advertising Spring 2003

Conclusions on celebrity and Conclusions on celebrity and

sponsorship sponsorship

Assessment of brand value Assessment of brand value

DonDont underestimate costst underestimate costs

Impact beyond awareness is difficult to Impact beyond awareness is difficult to

evaluate (importance of research)evaluate (importance of research)

Sponsorship is seductiveSponsorship is seductive

Seek strategic fitSeek strategic fit

Be conscious of timescale Be conscious of timescale