Everyone brands

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Everyone brands

• Manufacturers
• Retailers
• Private
• Store
• Wholesalers
• Services
• Malls

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What is a brand?

• A name
• A symbol
• A product
• A store
• A promise the consumer can trust
• A key asset

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What is a brand? (Tangibles)

• AMA American Marketing Association
• A name, term, design, symbol, or any other
  feature that identifies one sellers good or
  service as distinct from those of other sellers.

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What is a brand?

• Cow fits definition is it a brand?
• What if Mercedes becomes Dolores will it no
  longer be a brand?
• If Pentium becomes Intellect (rejected candidate
  name), will it sell less?

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What is a brand?

• Cow is not a brand, but a product class
• Guernsey or Holstein might represent product
  forms
• Symbol burned into cows hide to identify the
  cows of a particular owner is a brand

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Why Consumers use Brands
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Shop fewer stores

• 1980 3.5 stores
• 1990 2.75 stores
• 1995 2.2 stores
• 2000 1.2 stores

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Brand as asset (Intangibles)

• Brands have equity
• perceived to have value beyond what the
  products/services/stores they are attached to
  produce in sales and profits
• Brands can be more lasting than assets of
  factories, warehouses, stores
• Brands may appreciate rather than depreciate
• Brands are portable

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Measuring brand equity

• Value stockholders place on a brand
• Market share, customer loyalty, market
  penetration, lifetime value of a customer
• Consistently deliver on their promise
• The Gap
• Home Depot
• Amazon.com

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What threatens brand equity?

• Low or inconsistent quality
• Michelob (Where youre going, its Michelob)
• Extending into inappropriate channels
• Lack of innovation
• Not differentiating
• Not meeting consumer expectations
• every point of customer contact

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Planning Brand Strategy

• Know your core business
• Develop 3 interrelated strategies
• Positioning
• Personality
• Affiliation
• Communicate brand strategies

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Company performance
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1. Positioning strategy

• The niche a brand occupies in consumers minds
• Maintain parity with competitors AND
  differentiate
• Must define 3 things
• target audience
• competitive frame of reference
• meaningful differentiation point

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Motel 6 positioning

• For frugal people, Motel 6 is a comfortable
  nights stay at the lowest price of any national
  chain.
• Target audience
• Competitive frame of reference
• Meaningful Differentiation point

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Develop positioning strategy

• For (target audience), your brand is a
  (competitive frame of reference) that provides
  (meaningful differentiation point).
• Is it a brand? Not just a store name.
• Group members names IC 5

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Positioning examples

• Product superiority, maintain service
• Mercedes-Benz, Sony
• Excel in service, hold own in quality
• Nordstrom, Saturn
• Superior use of user imagery, adequate or strong
  performance
• Calvin Klein, Harley Davidson

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2. Create Brand Personality Strategy

• Set of human traits brand portrays in its
  relationship with its customers
• Character or personality that predicts what to
  expect
• that sounds like a __________ ad
• Motel 6 personality strategy
• Deliver brand personality at every point of
  contact

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3. Manage Brand Affiliation

• How you think others will perceive you if they
  know you use a particular brand?
• Prevent negative or limiting perception
• Motel 6 example
• Bic example
• ballpoint pens - 1950s
• disposable cigarette lighters - 1970s
• disposable razors - 1980s
• Perfume - 1989 - Paris in your pocket

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For Global Against

• Homogenous tastes
• Economies of scale
• Small markets get their share
• Brand effectiveness can be improved

• Local market tastes/pref. ignored
• Choices and effectiveness diluted for global
  appeal
• Local regulations and restrictions

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Cyberbranding

• Strong brand can provide powerful advantages,
  esp. initially
• Branding is more complex
• creating an experience that potential buyers
  interact with
• Reach and interactivity are increased
• Victorias Secret example

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Brand Extension

• New products
• Williams-Sonomas Pottery Barn catalog launched
  Pottery Barn Kids
• L.L. Bean launched L.L. Home
• New customers
• Abercrombie Fitch launched abercrombie
• New formats
• Avon to Avon.com, mall-based kiosks, Avon spa
• Delias direct marketer, stores, Internet

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Brand Extension

• New Channels
• Starbucks, license with Kraft for supermarkets
• New Businesses
• Tesco now offers natural gas to customers
• Nordstrom is into financial services

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Rational Branding

• Something of value is given in exchange for
  information
• Build your own...

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Rational Branding