Branding p1

PSU - 2006 - Global Brand Management - Alain
Welcome toWelcome to
GLOBAL BRAND MANAGEMENTGLOBAL BRAND MANAGEMENT
• To-day
Goals
– How we are going to work (syllabus)
– Some rules
Part I : Investigating the Brand
« power »

Me …Me …
 Alain Hutinel
 Education
– ESSEC
– MBA Keller Graduate School of Business (Indiana
University)
 Experience
20 years in FMCG Marketing, Colgate Palmolive &
Quaker Oats
2 years MD of an IT Network Cy
15 years of Consulting and Teaching
 Major interests
…. Teaching internationally
Marketing Communications and Brand
Management
…. Discovering new ways of marketing
hutinel@pdx.edu
Office : 260C
Tu, W & Th.
503-725-3732

You…You…
 Special Topics/ Interest in Brands … Specific project
 Business actual situation ……..
> let’s talk and imagine
Your role :
to build your own brand model
so as to better anticipate what you think
will happen

Class materialsClass materials
Course Slides + on PSU/SBA - Faculty
and Staff - Alain Hutinel website &
course e-mail (to-morrow)
CD-ROM
Reference book : Lane Keller,
« Strategic Brand Management »
• Also : « Brand Portfolio Management »
by D.A. Aaker

 (some) Brand Management Websites
 www.pwcglobal.com/fr/fra PriceWaterhouse
 www.tns.com Taylor Nelson Sofres, Etudes, Panels, Piges ….
 www.esomar.nl ESOMAR Recherche MArketing
 www.brandweek.com US magazine
 www.brandchannel.com Interbrand “The” site on Branding.
 www.brandfinance.com
 www.milwardbrown.com Brand research and survey company
 www.future.sri.com Research International.
 www.intelliquest.com Millward Brown.Adverising
 www.accenture.com Accenture
 www.ipa.com UK Institute of Professional Advertisers
 www.prodimarques.com French Brand Association
 www.labelmark.com French consultant
 www.nomen.com French consultant for Brand Names search
 www.mckinseyquarterly.comMcKinsey
 www.exmarketing.com Consultants, Bern Schmitt (Columbia U.)
 www.bec-institute.com HighCo brand Institute partly in English
 http://www.cobranding.com co-branding offers
 www.globalbrand.org

What will be evaluatedWhat will be evaluated
Importance vs Completeness
Capacity to judge and build own opinion
(managerial aptitudes)
Capacity to anticipate and innovate (d°)
Capacity to evaluate quality of marketing
activities (d°)

YOUR ROLESYOUR ROLES
AND RESPONSIBILITIESAND RESPONSIBILITIES
1. To build your own brand model
2. To anticipate what you think
should happen
3. Individually, to do the required
homework and participate in
class debate
4. To actively contribute to group
work

Requirements and gradingRequirements and grading
Readings as directed
3 individual essays from readings
3 individual cases (powerpoint format only)
1 group brand audit & project

Typical Reading/Essay formatTypical Reading/Essay format
 The most important/new ideas/concepts retained by the writer(s)
 Critique/discussion on these ideas, on methodology, argumentation etc
….
 Give your opinion
 Say what might happen 5 to 10 years from now
 Provoque class debate
 How you will apply in your brand audit
 10 minutes = no more than 6/7 light slides
 All work in powerpoint format

Course main TopicsCourse main Topics
 Brand strategic role
 The Brand system
 Valuating the Brand
 Brand Equity
 Brand Identity
 Managing the Brand
Communicative scope
 Managing Brand
Architecture
 Brand portfolio Issues
 Cross-cultural Branding

TO-DAYTO-DAY
Investigating, understanding
the Brand Importance to the
firm
Defining the Brand
The Brand System
Defining the Brand roles
Brand Power and Value

PSU - 2006 - Global Brand Management - Alain Hutinel. 12
« Ultimately, Brands are all« Ultimately, Brands are all
about trust …about trust …
… the reason consumers flock to some brands
and ignore others is that behind the brand
stands an unspoken promise of value. That is
why brands are becoming even more
important drivers of growth. That is also why
Unilever wants Knorr, Skippy, Hellmann’s,
SlimFast and Ben & Jerry on its plate. »
Mukul Pandya, WSJ.

Key trends affecting brandKey trends affecting brand
management … & marketing !management … & marketing !
 Consumption, societal & cultural multi-Consumption, societal & cultural multi-
fragmentation & globalisitionfragmentation & globalisition
 Less loyal / more « intelligent (?) »Less loyal / more « intelligent (?) »
buyer buyer
 Self value-building consumptionSelf value-building consumption
 Search for emotionsSearch for emotions
 Multiplication of offers & chanels
 Interactive marketing technologiesInteractive marketing technologies
 Markets saturationMarkets saturation
 Multiplication of touchpoints/contactsMultiplication of touchpoints/contacts
 Loss of credibility of traditional mediaLoss of credibility of traditional media

From USP to HSPFrom USP to HSP
 USP = Unique Selling Proposition
 ESP = Emotional Selling Proposition
 OSP = Organizational Selling Proposition
 BSP = Brand Selling Proposition
 MSP= Me Selling Proposition
 HSP =Holistic Selling Proposition
 (Martin Lindstrom)

A Brand builds its Own worldA Brand builds its Own world
And that is a fantastic power !

PSU - 2006 - Global Brand Management - Alain Hutinel. 16
In this brand (!) newIn this brand (!) new
world, Whatworld, What ISIS a Branda Brand
and Whatand What DOESDOES a Branda Brand
do?do?
??

Think of Brands in your ownThink of Brands in your own
lifelife
 1 - Think of how you became aware of1 - Think of how you became aware of
them, why you bought them, why youthem, why you bought them, why you
prefer them, how you feel aboutprefer them, how you feel about
them ...them ...
 2 - List them as they come to your2 - List them as they come to your
mindmind
 3 - Chose one brand you are very3 - Chose one brand you are very
familiar with :familiar with :
. What does this Brand do for you?. What does this Brand do for you?
. What does it MEAN to you?. What does it MEAN to you?
. How do you relate to it ? …. How do you relate to it ? …
 4 – Main characteristics of a world4 – Main characteristics of a world
without Brands ?without Brands ?

““What is the best …”What is the best …”
Who makes the best …. Automobile ?
………
Do you own one ?
Have you ever owned one ?
Have you ever driven one ?
Do you know anybody who owns one ?
How do you know ….. It is the best ?

Brand is an experienceBrand is an experience
 A brand is essentially a container for a costumer’s
complete experience with the offer and the company.
(Sergio Zyman)

What is a BrandWhat is a Brand
(shortcut) ?(shortcut) ?
Attributes Benefits Values
Culture
User
Personality

The Brand as an Open System.The Brand as an Open System.
.Scope
.Attributes
.Uses
.Quality/
Value
.Functional
Benefits
Organization’s
associations
Personality
Symbols
Origin
User Imagery
Relationships with
customers
Self-expressive
benefits
Emotional benefits
(Core) Offer
(Tangible Products &
Services)
Codes/Tone
Competition
Skills
Name
Corporation
Economy
…
Chanels, contacts
…
Tribes
Cultures
Groups …

This Brand SystemThis Brand System
interactsinteracts AS ...AS ...
1) .. A SOCIO-ECONOMIC AGENTA SOCIO-ECONOMIC AGENT
2) .. A CORPORATE ASSETA CORPORATE ASSET
3) .. A STRATEGIC MARKETINGA STRATEGIC MARKETING
TOOLTOOL
4) .. A COMMUNICATING &A COMMUNICATING &
SELLING AGENTSELLING AGENT

THE BRAND AS A SOCIO-ECONOMICTHE BRAND AS A SOCIO-ECONOMIC
AGENTAGENT
• PART OF EACH INDIVIDUAL’S ANDPART OF EACH INDIVIDUAL’S AND
SOCIETALSOCIETAL GROUPS ’ SET OFGROUPS ’ SET OF
REFERENCESREFERENCES
• A POWERFUL SOCIAL DRIVERA POWERFUL SOCIAL DRIVER
• A GLOBAL CIMENTA GLOBAL CIMENT
• A VALUE ADDING ECONOMIC AGENTA VALUE ADDING ECONOMIC AGENT

Coca Cola 2002.jpg

Brand Strategic RoleBrand Strategic Role
Brand
Equity
Cash flow
booster
Consumer
Response
Booster

THE BRAND AS A CORPORATE ASSETTHE BRAND AS A CORPORATE ASSET
• A PROTECTED PROPERTY (PROTECTED PROPERTY (owner's right to
use))
• BOOK VALUE, GOODWILL. ASSET that canBOOK VALUE, GOODWILL. ASSET that can
bebe sold and boughtsold and bought
• MARKETING « NON TANGIBLE » ASSETMARKETING « NON TANGIBLE » ASSET
precisely measurable and valuableprecisely measurable and valuable
(when(when brand is on sale) :brand is on sale) :
STRENGTH , LEADERSHIP & EQUITY, ieSTRENGTH , LEADERSHIP & EQUITY, ie
capacity to justify price.capacity to justify price.

Brand Asset ValueBrand Asset Value
Source : K.L.Keller

BRAND EQUITYBRAND EQUITY
as a Percent of Firm Tangible Assets
Industry Brand Equity
Apparel 61
Tobacco 46
Food products 37
Chemicals 34
Electric machinery 22
Transportation equip. 20
Primary metals 1
Stone, glass, and clay 0

Brand (Market) PerformanceBrand (Market) Performance
ValuationValuation
DDB Pricing Studies
Landor Power Index
Interbrand Valuation model
Y&R Brandasset Valuator
Intangible Value Valuator
Sometimes stock market value

The Landor Power IndexThe Landor Power Index
 Power = strengthPower = strength
 2 synthetic2 synthetic
measuresmeasures
AwarenessAwareness
EsteemEsteem
 «Share of Mind»«Share of Mind»
ideaidea (cf. Share of
Market Share of
Voice, Share of
Requirements ....
)
 Most influencingMost influencing
factor : brandfactor : brand
perceivedperceived qualityquality
 needneed timetime

Interbrand BRAND VALUEInterbrand BRAND VALUE
AttributesAttributes
Leadership (25%)
Market share,
Awareness,
Positioning,
Competitor Profile
Stability (15 %)
Longevity
Coherence Consistency,
brand Equity,
risks
Market (10 %)
What market,
Volatility size
Market dynamics
Barriers
Internationality (25%)
Trend (10 %)
LT erformance,
Projected
performance, Sensibility of
Plans, competition reactivity
Support (10 %)
Consistency of message
and spendings,
Above/below the line Brand
franchise
Protection (5%)
Trademark registration
/registrability
common law,
litigations/disputes

Interbrand Ranking and Ratio of Brand value to Firm Market Value
SM % B
Rank $ bns Rank $ bns Rank $ bns Rank $ bns $ bns /SM RANK $bns RANK $bns
1 Coca-Cola 39 Coca-Cola84 Coca-Cola 69 Coca-Cola 70 138 51 Coca-Cola 71 Coca-Cola 67
2 Marlboro 39 Microsoft 57 Microsoft 65 Microsoft 64 276 23 Microsoft 65 Microsoft 61
3 IBM 17 IBM 44 IBM 53 IBM 51 138 37 IBM 52 IBM 54
4 Motorola 15 GE 34 GE 42 GE 41 309 13 GE 42 GE 44
5 HP 13 Ford 32 Nokia 35 Intel 31 185 17 Intel 31 Intel 33
6 Microsoft 12 Disney 32 Intel 35 Nokia 30 68 44 Nokia 29 Disney 27
7 Kodak 12 Intel 30 Disney 33 Disney 29 47 62 Disney 28 McDonald's 25
8 Budweiser 11 McDonald's26 Ford 30 McDonald's 26 38 68 McDonalds 25 Nokia 24
9 Kellogg's 11 AT&T 24 McDonald's 25 Marlboro 24 Marlboro 22 Toyota 23
10 Nescafé 10 Marlboro 21 AT&T 23 Mercedes 21 Mercedes 21 Marlboro 22
11 Intel 10 Nokia 21 Marlboro 22 Ford 20 32 63 Toyota 21 Mercedes 21
12 Gillette 10 Mercedes 18 Mercedes 22 Toyota 20 100 20 HP 20 HP 21
13 Pepsi 8 Nescafé 18 Citibank 19 Citibank 18 223 8 Citibank 19 Citibank 20
14 GE 7 HP 17 Toyota 19 HP 17 58 29 Ford 17 Amex 18
15 Levi's 7 Gillette 16 HP 18 Amex 16 57 28 Amex 17 Gillette 17
16 Frito-Lay 7 Kodak 15 Cisco 17 Cisco 16 116 14 Gillette 16 Cisco 16
17 Compaq 7 Amex 17 AT&T 16 43 37 Cisco 16 BMW 16
18 Bacardi 7 Gillette 15 Honda 15 42 36 Honda 16 Honda 15
19 Campbells 7 Merryll Lynch 15 Gillette 15 38 39 BMW 15 Ford 14
20 Pampers 6 BMW 11 Sony 15 BMW 14 29 48 Sony 13 Sony 13
21 Honda 15 Sony 14 53 26 Nescafe 12 Samsung 12
22 BMW 14 Nescafe 13 Budweiser 12 pepsi 12
23 Nescafé 13 Oracle 12 44 27 Pepsi 12 Nescafe 12
24 Compaq 12 Budweiser 11 45 24 Oracle 11 Budweiser 12
25 Oracle 12 Merrill Lynch 11 35 31 Samsung 11 Dell 12
26 Budweiser 11 Morgan St. 11 50 22 Morgan St. 11 Merrill Lynch 11.5
27 Kodak 11 Compaq 10 Merrill lynch 11 Morgan St. 11.5
28 Merck 10 pfizer 10 217 5 Pfizer 11 Oracle 11
29 Nike 8 Nintendo 9 J.P. Morgan 10 72 14 Dell 10 Pfizer 10.6
30 Pfizer 9 Kodak 10 10 100 Merck 9 J.P. Morgan 10
31 Gap 9 Dell 9 70 13 JPMorgan 9 Nike 9.3
32 Dell 8 Nintendo 9 20 45 nintendo 8 Merck 8.8
33 Golman S. 8 Mercx 9 130 7 Nike 8 HSBC 8.7
34 Nike 8 Samsung 8 Kodak 8 SAP 8.3
35 VW 7 Nike 8 SAP 8 Canon 8.1
36 Ericsson 7 Gap 7 13 54 Gap 8 kellogg's 8
37 Apple 4 Heinz 7 Heinz 7 HSBC 8 Goldman S. 8
38 Levi's 7 VW 7 21 33 Kellogg's 7 Gap 7.9
39 Kellog's 7 Goldman S. 7 36 19 Canon 7 Siemens 7.5
40 MTV 7 Kellog's 7 15 47 Heinz 7 Ikea 7.2
41 Canon 7 Louis Vui. 7 26 27 Goldman S. 7 HD 7.1
42 Samsung 6 SAP 7 33 21 VW 7 Heinz 7
43 SAP 6 Canon 7 34 21 Ikea 7 Apple 6.9
44 Ikea 4 Pepsi 6 Ikea 7 HD 7 Louis Vui. 6.6
45 Xerox 6 Pepsi 6 92 7 Louis Vui. 7 UBS 6.5
46 Ikea 6 HD 6 16 38 MTV 6 Nintendo 6.5
47 Pizza Hut 6 MTV 6 L'Oreal 6 MTV 6.5
48 HD 6 Pizza Hut 6 Xerox 6 VW 6.4
49 Apple 5 KFC 5 KFC 6 L'Oreal 5.9
50 Gucci 5 Apple 5 Apple 6 Accenture 5.8
51 KFC 5 Xerox 5 34 #### Pizza Hut 5 Xerox 5.7
52 Ralph Lauren2 Gucci 5 24 #### Accenture 5 Wrigley's 5.4
53 Accenture 5 Gucci 5 Kodak 5.2
54 L'Oreal 5 48 10 Kleenex 5 KFC 5.1
55 Kleenex 5 Wrigleys 5 Pizza Hut 5
56 Sun 5 22 23 Colgate 5 Colgate 5
57 Wrigley's 5 Avon 5 Kleenex 4.9
2003 20042002
Interbrand value1995 1999 2001
MB
Interb.

Monash University MBA - January
2002 - Prof. A. Hutinel 26
Brand Stature
Brand
Strength
Differenciation Relevance Esteem Knowledge
D R E K D R E K
D R E K D R E K
Y&R ’s « Brandasset Valuator »
PowerGrid

Heinz Ketchup - 2000

THE BRAND AS A KEY STRATEGICTHE BRAND AS A KEY STRATEGIC
MARKETING TOOLMARKETING TOOL
* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLEBRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE
Adaptable to changing environments andAdaptable to changing environments and
technologiestechnologies
* SUPPORT OF LONG-TERM TIES WITH PEOPLE* SUPPORT OF LONG-TERM TIES WITH PEOPLE
* ALLOWS LOWER COST for NEW ENTRIES* ALLOWS LOWER COST for NEW ENTRIES
* UNIQUE SPOKESMAN TO ALL PUBLICS* UNIQUE SPOKESMAN TO ALL PUBLICS
** JUSTIFIES HIGHER PRICE & MARGINSJUSTIFIES HIGHER PRICE & MARGINS

The Brand Value ChainThe Brand Value Chain
Value Stages
 Marketing programs
 Customer Mindset
 Market Performance
 Shareholder Value
Value Multipliers
 Programs Quality
 Market Place &
Competition
Conditions
 Investor Sentiment

The Leading Brands: 1925 and 1985The Leading Brands: 1925 and 1985
Product Leading Brand 1925 Current Position 1985
Bacon Swift Leader
Batteries Eveready Leader
Biscuits Nabisco Leader
Breakfast cereal Kellogg Leader
Canned fruit Del Monte Leader
Chewing gum Wrigley Leader
Chocolates Hershey No. 2
Flour Gold Medal Leader
Mint candies Life Savers Leader
Paint Sherwin-Williams Leader
Pipe tobacco Prince Albert Leader
Razors Gillette Leader
Sewing machines Singer Leader
Shirts Manhattan No. 5
Shortening Crisco Leader
Soap Ivory Leader
Soft drinks Coca-Cola Leader
Soup Campbell Leader
Tea Lipton Leader
Tires Goodyear Leader
Toothpaste Colgate No. 2

R A T E O F L O Y A L T Y
C A P A C IT Y T O B U I L D I T
L E V E L A N D S C O P E O F
A W A R E N E S S
L E V E L & D I S T I N C T I V E N E S S
O F P E R C E I V E D Q U A L I T Y
M E A S U R E D S T R E N G T H O F
I M A G E A N D I D E N T I T Y
U N I Q U E N E S S O F P E R C E I V E D
P O S I T I O N N I N G
P R E F E R E N C E P O W E R
O F P E R C E I V E D B E N E F I T S
B R A N D E Q U IT Y & M A R K E T I N G A S S E T S

Building Brand EquityBuilding Brand Equity
BrandBrand
EquityEquity
(Name &(Name &
Symbol)Symbol)
Value To CustomerValue To Customer
• Info ProcessingInfo Processing
•Confidence in BuyingConfidence in Buying
•Use SatisfactionUse Satisfaction
Value To FirmValue To Firm
• Helps ProgramsHelps Programs
• Brand LoyaltyBrand Loyalty
•PricesPrices
•Brand ExtensionsBrand Extensions
•Trade LeverageTrade Leverage
•CompetitiveCompetitive
AdvantageAdvantage
NameName
AwarenessAwareness
PerceivedPerceived
QualityQuality
BrandBrand
AssociationsAssociations
OtherOther
BrandBrand
AssetsAssetsBrandBrand
LoyaltyLoyalty
Preference

P & G - Mr Propre Mr Clean

THE BRAND AS ATHE BRAND AS A
COMMUNICATINGCOMMUNICATING
& SELLING AGENT& SELLING AGENT
* A RELATIONSHIP ACTOR/BUILDER* A RELATIONSHIP ACTOR/BUILDER
* AN INFLUENCER* AN INFLUENCER
* IT GIVES MEANINGS TO* IT GIVES MEANINGS TO
PRODUCTS/SERVICES ...PRODUCTS/SERVICES ...
* ... AND A CREATOR OF « NEW » WORLDS* ... AND A CREATOR OF « NEW » WORLDS

The best Performances last longest.

From Traditional MarketingFrom Traditional Marketing
Functions of the Brand NameFunctions of the Brand Name
……
 IdentificationIdentification
Expresses the offer and is easily seenExpresses the offer and is easily seen
 PracticalityPracticality
Saves times/energy thru repeatSaves times/energy thru repeat
purchase & renewed satisfactionpurchase & renewed satisfaction
 Guarantee of qualityGuarantee of quality
 Has reputationHas reputation

…… to a powerful societalto a powerful societal
system that … sellssystem that … sells
…… ie :ie :
 exerts influences in the market placeexerts influences in the market place
 changes consumers’ wants and needschanges consumers’ wants and needs
 sets ideals and standardssets ideals and standards
 helps/facilitates choicehelps/facilitates choice
 provides purchase reassuranceprovides purchase reassurance
 reduces after-choice dissonancereduces after-choice dissonance
…………

……..
 gives meanings and identity to whatgives meanings and identity to what
we use & buywe use & buy
 helps us build our self-identityhelps us build our self-identity
 provides a symbolic language throughprovides a symbolic language through
which we can express ourselves inwhich we can express ourselves in
society and be recognized andsociety and be recognized and
understood by othersunderstood by others
 creates a longlasting relationship withcreates a longlasting relationship with
« consumers », at least with« consumers », at least with
customerscustomers

So, a modern brand isSo, a modern brand is
 A « persona » that overlays andA « persona » that overlays and
includes the physicalincludes the physical
products/servicesproducts/services
 the sum of fundamental values andthe sum of fundamental values and
attributes ascribed to it by peopleattributes ascribed to it by people
 the entity that the consumersthe entity that the consumers
construct from the products’ meanings,construct from the products’ meanings,
symbols and images that they perceivesymbols and images that they perceive
as defining the brand.as defining the brand.

PSU - 2006 - Global Brand Management - AlainEvian, approved spring of youth for your body.
Evian Water brings health to all growing bodies

US - Evian. l’Original. Approved by your body
as a source of youth.

Many different types ofMany different types of
brands ?brands ?
 B2B
 B2C
 Web
 Trade
 Local
 Regional
 National
 International
 Worlwide (meta)
 Corporate
 Commercial
 Non-business (?)
– Countries
– Official bodies
– Charity org.
– Politics/Polticians
– …

Nestle Branding TreeNestle Branding Tree
7500 Local Brands
– Solis, Texicana, Rocky
140 Regional Brands
– Contadina, Stouffers, Herta, Vittel
45 Worldwide strategic Brands
– KitKat, Polo, Baci, After Eight, Coffee-Mate
10 worldwide Corporate Brands
– Nestle, Carnation, Maggi, Buitoni, Perrier

Nestlé Branding Tree

SARA LEE BRANDSSARA LEE BRANDS
25,000 brands registered worldwide, 80% in
use.
Sara Lee is eliminating R&D & Production to
focus on brand development
GLOBAL
REGINAL
LOCAL BRANDS
Sara Lee
Brand
Hierarchy

From Traditional to ExperientialFrom Traditional to Experiential
BrandingBranding
From
 Brands as identifiers
 Names, logos, slogans
build awareness and
image
TO
 Brands as experience
providers
 Names, logos, slogans,
events, customer
contacts which build
sensory, affective,
creative relations and
ways of being (lifestyles)
with the brands

Branding p1

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