Product DevelopmentEveryone brandsWhat is a brand?Why Consumers use BrandsBrand as assetMeasuring brand equityCompany performanceWhat threatens brand equity?Planning Brand Strategy1. Positioning strategyMotel 6 positioningDevelop positioning strategyPositioning examples2. Create Brand Personality Strategy3. Manage Brand AffiliationFor Global AgainstCyberbrandingBrand ExtensionSlide 19Rational BrandingSlide 21HED 460Product DevelopmentBrandingHED 460Everyone brandsManufacturersRetailersPrivateStoreWholesalersServicesMallsHED 460What is a brand?A nameA symbolA product A storeA promise the consumer can trustA key assetHED 460Why Consumers use Brands59784701020304050607080ReasonsFac ilitateQualityImageHED 460Brand as assetBrands have equityperceived to have value beyond what 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 portableHED 460Measuring brand equityValue stockholders place on a brandConsistently deliver on their promiseThe GapHome DepotAmazon.comMarket SharePenetrationLifetime value of customerHED 460Company performanceHED 460What threatens brand equity?Low or inconsistent qualityMichelob (Where you’re going, it’s Michelob)Extending into inappropriate channelsLack of innovationNot differentiatingNot meeting consumer expectations“every point of customer contact”HED 460Planning Brand StrategyKnow your core businessDevelop 3 interrelated strategiesCommunicate brand strategiesHED 4601. 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 pointHED 460Motel 6 positioningFor frugal people, Motel 6 is a comfortable night’s stay at the lowest price of any national chain.Target audienceCompetitive frame of referenceMeaningful Differentiation pointHED 460Develop 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.HED 460Positioning 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 DavidsonHED 4602. Create Brand Personality StrategySet of human traits it 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 contactHED 4603. 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 - 1950’sdisposable cigarette lighters - 1970’sdisposable razors - 1980’sPerfume - 1989 - “Paris in your pocket”HED 460For 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 restrictionsHED 460CyberbrandingStrong brand can provide powerful advantagesBranding is more complexcreating an experience that potential buyers interact withReach and interactivity are increasedVictoria’s Secret exampleHED 460Brand ExtensionNew productsWilliams-Sonoma’s 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Delia’s direct marketer, stores, InternetHED 460Brand ExtensionNew ChannelsStarbucks, license with Kraft for supermarketsNew BusinessesTesco now offers natural gas to customersNordstrom is into financial servicesHED 460Rational BrandingSomething of value is given in exchange for informationBuild your own…...HED 460Rational