Brand Building Strategies

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Brand Building Strategies

• Dr. Charles Noble
• PMBA 623
• The University of Mississippi

? Click for sound
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Brand Concepts
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GENERIC PRODUCTS versus BRANDED PRODUCTS

• Generic product
• The opposite of branding
• Harder and harder to find

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Branding Ideas

• Brand
• a name, term, sign, symbol, or design, or
  combination of them, intended to identify the
  goods or services of one seller or group of
  sellers and to differentiate them from those of
  competitors
• Brand Equity
• the differential effect of brand knowledge on
  consumer response to the marketing of the brand
• in simpler terms, the price premium you would pay
  for a brand name product over a generic product
  with similar attributes

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Some brands you might know...
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Building Brands is Expensive!

• 20 million to introduce Nike Air Max line
• 240 million to introduce the Nissan line to the
  U.S.
• McDonalds spending 1.2 billion yearly just to
  maintain brand in U.S.!

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A brand can convey things like...

• Product attributes
• Benefits of use
• Values of the manufacturer
• Culture from which the product is born
• Personality of the product/manufacturer
• Qualities of the typical user
• What does the Mercedes brand convey in each of
  these areas?
• What brand image is Microsoft trying to create
  for its internet service?

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Creating a Sharp (clearly-defined) Brand Image

• What do you think of when you hear the following
  brands???
• Volvo?
• Rolex?
• Nike?
• Despite being a mega-brand based on awareness,
  does Microsoft have a clear image in your mind?
• Lessons
• Most marketers would probably rather work with
  the Volvo brand than with Microsoft
• Sometimes changing an existing brand image can be
  a huge challenge

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Branding Strategies

• Private-label Branding
• E.g., Sears Craftsman and Kenmore, JC Penneys
  Arizona Jeans Company
• Corporate Branding
• e.g., Microsoft

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More Branding Strategies

• Co-Branding
• Eddie Bauer Ford Explorer a classic
• And some not so good ones

Brand1
Brand2
Co-brand image
20" Schwinn Orange County Choppers
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PRESS RELEASE SCHWINN AND ORANGE COUNTY CHOPPERS
TEAM TO BRING BACK THE STING-RAY January 23,
2004 -- MADISON, WI - Schwinn bicycles, one of
America's favorite and most recognized brands,
has joined forces with Orange County Choppers,
the company that has garnered worldwide
recognition for building custom motorcycles and
is featured on the popular Discovery Channel show
"American Chopper," to create customized Schwinn
Sting-Ray bicycles. The Schwinn Sting-Ray,
widely regarded as the most popular bicycle ever
created, is returning to stores for the first
time in more than 30 years. The new Sting-Ray
sports a contemporary design that takes its cues
from great American motorcycles. To commemorate
the redesign of this classic, Schwinn has
partnered with Orange County Choppers (OCC) to
use the OCC logo on all editions of the new
Sting-Ray for mass retail sales, as well as use
of the OCC name for Sting-Ray parts and
accessories. "The original Sting-Rays of the
1960s and '70s were very cutting-edge and took
their design cues from muscle cars," explained
Byron Smith, Schwinn's Chief Operating Officer
President. "The new Sting-Ray takes its cues from
customized motorcycles, and who knows custom
motorcycles better than Orange County Choppers?
The classic Schwinn Sting-Ray was introduced in
1963 and remained on the market until 1979. There
were essentially four models The basic
Sting-Ray the Sting-Ray Deluxe (that added
chrome fenders and white wall tires) the
Sting-Ray Super-Deluxe (that added a springer
fork) and the Krate series (that added a
five-speed "Stik Shift," shock struts on the rear
seat and had a 16" front tire and a 20" rear
tire).
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Branding Strategies (cont.)

• Product Line Branding
• Ivory
• Specific Product Branding
• Crest, Pampers, Smart Car
• Combination Branding
• IBM ThinkPad, Sony Walkman

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Managing a Portfolio of Brands
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Issues in Brand Portfolio Management

• Creating distinctive positionings
• Understanding and articulating unique brand
  offerings
• Appealing to different consumer groups or usage
  situations
• Minimizing cannibalization
• Insulating against brand damage
• The fundamental balancing act of

Creating distinctive brand images
Leveraging brand power
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From Brands and Branding (Holt)
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Brand Cultures
The Firm
Popular Culture
Brand Stories
Brand Culture Shared, taken-forgranted brand
stories, images, and associations
Brand Stories
Brand Stories
Brand Stories
Influencers
Customers
Brand Culture of the product
Source Holt (2003), HBSP
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Four Components ofBrand Value
BRAND Stories, Images, Associations
Experiential Value Stories shape experience of
the product
Reputation Value Stories imply perceived quality
of product features
THE PRODUCT (objective features, quality
standards, augments)
Relationship Value Stories imply that firm is a
long-term partner that will attend to customer
interests
Symbolic Value Stories imbue the product
with values and identities
Source Holt (2003), HBSP
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Designing Brand Strategy
Brand Strategy

• Brand Culture Goal
• product reputation
• relationship perceptions
• experience framing
• symbolism

• Existing Brand Culture
• product reputation
• relationship perceptions
• experience framing
• symbolism

Strategy Drivers Environment Changes Competitive
benchmarking
Brand Engineering
Product design Service delivery Service
quality packaging
Advertising Personal selling Public
relations Corporate communications Corporate
actions
Channel policy Retail design Customer interface
Pricing promotions
Source Holt (2003), HBSP
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Summary on Brands

• More expensive than ever to create
• More and more difficult to find a unique and
  consistent place in consumers minds
• Turning around a failing brand is an enormous
  challenge
• Brands are multidimensional and story-driven
• Brand management is more critical than ever for
  company success!