how to brand a product

1. Brands and Stakeholder Relationships
Key Points:
 What doesit mean to say that abrand ismorethan
aproduct?
 Explain thethreestepsin building abrand.
 What arethekey factorsin creating brand
relationships?
 What isbrand equity and how isit affected by
brand relationships?

2. Marketing evolved from Economics
 During 20th century, focuson exchangethrough
manipulating theprice, promotion, distribution of
ideas, goodsand servicesto satisfy customersand
organisational objectives
 “Rational Consumer” not swayed by image or
intangibles
 Must constantly innovate, improve product quality
 Brands = identification to distinguish your product
from competitors

3. But now…..
 70% of “tangible” (physical) innovations
are copied by competitors within 1year
 Physical attributes get you in to a market
but are not sustainable competitive
advantage

4. What “brand” means
 A perception resulting from experiences with,
and information about, a company or a line of
products
 Exists only in people’s hearts and minds
 Differentiates products from competitors
 Makes a promise to customers

5. Brand value
 Nike versus New Balance
 Coke versus Cott
 Laurier versus Laurentian

6. Brand value
 You “believe” one brand performs better
 You “trust” the performance claims
 You buy “benefits” not products

7. Branding
Process of creating a brand image that
engages the hearts and minds of customers

8. Branding
Really, at its core, branding is simply marking
something and saying, “This is from me.”
Karl-Heinz Kalbfell, Global Head of Brand
and Product Strategy, BMW Group

9. Intangible Attributes
Intangibles are important in brand building:
 Harder for competitors to copy
 More likely to involve consumers emotionally
 Emotion triggers brain 3000x faster than rational
thought
 More consistent with how consumers choose

10. Brand more than a logo
 Not just a name (McDonalds)
 Not just symbol (golden arches)
 More than identification
 How you feel and what you think when
you see the name/symbol
 No brand = commodity

11. New Brand definitions...
“A perception of an integrated bundle of
information and experiences that distinguishes
a company and/or its product offerings from
the competition.”
“The sum of a customer’s experiences with a
product and/or company.”
Tom Duncan

12. New Brand definitions...
“The visual, emotional and cultural image
that surrounds your association or
organization and its products and services.”

13. Where does a “Brand” come from?
 Customers form perceptions from:
 Cues
 Signals
 Other types of communication messages
 Experiences
 Both products and companies are
considered brands

14. Cues
 Attributes provide cues to support
perceptions you want to create

15. What Does a “Brand” Do?
 Saves consumers time
 Creates trust or level of expectation
 Provides psychological attributes

16. Brand Loyalty
 What loyalty cards do you use?
 What role do they play in the MC program?

17. Brand Building
“Building a brand is all about conveying
proof points that whatever product you pitch
is worth my attention and my hard-earned dollar
as a consumer and as a business owner.”
Steven Cody, Managing Partner, PepperCom

18. The Brand Promise
 Essence of a brand is a promise
 Brand management = managing customer
expectations
 Don’t make promises you can’t deliver

19. The Coca-Cola Promise
The Coca-Cola company exists to benefit and
refresh everyone it touches.
 The basic proposition of our business is simple, solid and
timeless. When we bring refreshment, value, joy and fun to
our stakeholders, then we successfully nurture and protect
our brands, particularly Coca-Cola. That is the key to
fulfilling our ultimate obligation to provide consistently
attractive returns to the owners of our business.
http://www2.coca-cola.com/ourcompany/ourpromise.html

20. Employee Marketing
 Employees ultimately deliver the brand
promise every day
 If corporate culture is the brand….
 Then employee marketing is the branding

21. Brand Equity
Two basic components determine a company or
a brand’s value:
 Physical net assets, e.g. plants, equipment,
and land
 Brand equity – the intangible value of a
company beyond its physical net assets

22. Interbrand’s
Most Valuable Brands
July 28, 2006 Rankings
1. Coca-Cola $67,000
2. Microsoft 56,927
3. IBM 56,201
4. GE 48,907
5. Intel 32,319
6. Nokia 30,131
7. Toyota 27,941
8. Disney 27,848
9. McDonald’s 27,501
10. Mercedes 21,795
Source: www.interbrand.com/best_brands

23. How are Brands Evaluated?
 Calculate overall brand sales
 Project net earnings
 Deduct projected earnings from ‘tangible assets’
 Use market research to isolate “brand” from
remaining intangible assets (e.g.patents, customer
lists, etc.)

24. Testing Brand Value
Conjoint Analysis
 Statistical method that captures trade-offs:
 service vs. price vs. features vs. brand name
Dollarmetric Scale
 AMC unidentified model – asked what would
customers pay for it
 Identical TV sets examined by consumers
Vs.Vs.

25. Five Elements of Brand Equity
 Brand-name awareness
 Brand associations
 Perceived quality
 Proprietary brand assets
 Brand loyalty

26. Steps in Building a Brand (V1)
1. Select a name and symbol
2. Create awareness and brand identity
3. Position the brand
4. Create a brand image
5. Create trust/build a relationship
from Duncan first edition

27. Steps in Building a Brand (V2)
1. Select desired brand position
2. Develop brand identification
3. Create a brand image
from Duncan second edition

28. 1. Positioning
Defined by consumers
on important attributes
Place in mind relative
to competing products
Position happens -
planned or not

29. Positioning
G
Against a
Competitor
Against a
Competitor
Usage
Occasions
Usage
Occasions
Away from
Competitors
Away from
Competitors
Product
Attributes
Product
Attributes
Product
Class
Product
Class
Benefits
Offered
Benefits
Offered
UsersUsers
B
D
C
G
F
A
E

30. Positioning Map
Luxury Automobile Market
High Price
BMW
750iL
Toyota
Supra
Nissan
300ZX
Mercedes
Benz 400EPorsche
Audi 325i
Cabriolet
Low Price
SedanSports Car
Jaguar XJS
Audi Quattro
Nissan
Infiniti
Toyota
Lexus
Cadillac
Allante
Ferrari
Lotus
Turbo Esprit

31. 2. Develop Brand Identification
 Choose brand name
 Has to be memorable
 How to do this?
 Benefit description
 Association
 Distinctive
 Pronounceable

32. 2. Develop Brand Identification
 Choose brand symbol
 An effective logo:
 Communicates brand image and positioning
 Is simple, distinctive, and relevant
 Often legally protected as trademarks

33. 3. Create Brand Image
 An impression created by brand messages
and experiences and assimilated into a
perception or impression of the brand
 E.g. Marlboro Man

34. Brand Icons of the 20th
Century
1. The Marlboro Man
2. Ronald McDonald
3. The Green Giant
4. Betty Crocker
5. The Energizer Bunny
6. The Pillsbury Doughboy
7. Aunt Jemima
8. The Michelin Man
9. Tony the Tiger
10. Elsie the Cow
Rankings based on an Advertising Age survey

35. Branding Strategies
 Ways of maximizing the communication
impact of brands
 Critical elements include:
 Brand Extensions
 Multi-tier branding
 Co-branding
 Ingredient branding

36. Brand “Personality”
Anthropomorphism - giving human
characteristics to inanimate objects
If the brand were a person, what kind of
person would it be?
E.g. Mercedes vs Miata
 Male or Female?
 Young or Old?
 How would it dress?
 What music would it listen to?
 Where would you see it?

37. Y&R Brand Asset Valuator
 Proprietary 2-part model
 part 1 - strength of the brand image
 part 2 - brand personality scale

38. Y&R Brand Asset Valuator
Differentiation
Relevance
Esteem
Knowledge
Brand
Strength
Brand
Status
BRAND
IMAGE

39. Brand Personality Scale
Sincerity
Excitement
Sophistication
Competence
Ruggedness
BrandBrand
PersonalityPersonality

40. “Is it on Brand?”
 Would our brand say that?
 Would our brand do that?
 Is it consistent with our brand image and
personality?

41. Communication Style Guide
 Graphic Standards Manual
 Gives direction for the appropriate use of the brand
or corporate identity symbols such as the logo, color
palette, and other stylistic details

42. Consumers modify your brands
“In the old days, the successful communication of a
personality through advertising gave the brand
stable meaning. Now consumers are more proactive
in reshaping brands.”
Michael Solomon (Auburn)

43. Successful Brands
 are visible
 have clarity
 are relevant
 have longevity

44. Brand mantra
 3 words that capture the brand’s essence
 Nike: “Authentic athletic performance.”
 Disney: “Fun family entertainment.”