Strategic Brand Management - Exeterpeople.exeter.ac.uk/wl203/BEMM211/Materials/Lecture... · Strategic Brand Management Exeter MBA and MSc – Day 5 Brand Management Today Brand Management
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1
Jack Buckner
Strategic Brand ManagementStrategic Brand Management
Exeter MBA and MSc Exeter MBA and MSc Day 5Day 5
Brand ManagementBrand Management
TodayToday
Brand Management lectureBrand Management lecture
Branding and nostalgiaBranding and nostalgia
The role of the Internet in BrandingThe role of the Internet in Branding
Icon management, celebrity and sponsorshipIcon management, celebrity and sponsorship
Global Brand FaceGlobal Brand Face--OffOff
Implementation and conclusionImplementation and conclusion
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Remember the Graveyard ModelRemember the Graveyard Model
Low
High
High
Recognition
Recall
Niche Brand
Graveyard
Source: Y & R
3
Out of the GraveyardOut of the Graveyard
Aga Foodservice
High brand recognition
Low brand salience
Identified younger
target market
Product range
refreshed
Brand/marketing
investment
Graveyard ModelGraveyard Model
Illustrates the difference between Illustrates the difference between
recognition and saliencerecognition and salience
Works best for heritage brandsWorks best for heritage brands
Much harder for mass and discount brandsMuch harder for mass and discount brands
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Heritage and the Graveyard modelHeritage and the Graveyard model
Graveyard brands HAD high equity in the Graveyard brands HAD high equity in the
pastpast
The challenge is to rejuvenate themThe challenge is to rejuvenate them
Heritage brands are authenticHeritage brands are authentic
Play off authenticity and nostalgiaPlay off authenticity and nostalgia
Make them relevant todayMake them relevant today..
Why is heritage so powerful?Why is heritage so powerful?
Brands have deep meaningsBrands have deep meanings
Symbols of identitySymbols of identity
Authenticity works with almost all Authenticity works with almost all
consumer groupsconsumer groups
Personal nostalgia Personal nostalgia youthyouth
Communal nostalgia Communal nostalgia triggered by eventstriggered by events
Old brands link to an idealized pastOld brands link to an idealized past
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Teaching Old Brands New TricksTeaching Old Brands New Tricks
Allegory Allegory symbolic storiessymbolic stories
Arcadia Arcadia idealized pastidealized past
Aura Aura powerful sense of authenticitypowerful sense of authenticity
Antinomy Antinomy a paradox (contrast between a paradox (contrast between
technological progress and desire for a technological progress and desire for a
slower pace of life)slower pace of life)
Brown, Sherry & Kozinets Journal of Marketing 2003
The VW BeetleThe VW BeetleAllegory stories about the
Beetles past, the peoples car
Arcadia idealized sixties
communities, advertising
campaigns, less flower, more
power.
Aura recreating original
symbols and references in a
contemporary manner
Antimony paradox between
the retro-past and techno-
design in the product/brand
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What brands can be revived?What brands can be revived?
There must be a brand story, relatively There must be a brand story, relatively
undisturbed by recent marketing attentionundisturbed by recent marketing attention
Some vital essence or iconic momentSome vital essence or iconic moment
Capable of mobilizing a vision linked to Capable of mobilizing a vision linked to
communitycommunity
Open to technological and symbolic updatesOpen to technological and symbolic updates
Nostalgia Brands?Nostalgia Brands?
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Risks with nostalgiaRisks with nostalgia
Brands can appear old and irrelevantBrands can appear old and irrelevant
Impact on existing brand activityImpact on existing brand activity
Lose touch with existing consumersLose touch with existing consumers
Wrong place, wrong timeWrong place, wrong time
What new brands have
emerged through the
Internet?
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Google
Ebay
Friends Reunited
Amazon
Yahoo!
Information brands, trust brands, transaction
brands but not consumer brands
What new consumer goods
brands have emerged via the
Internet?
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Functions the Internet enables Functions the Internet enables
Consumer choiceConsumer choice
Search for valueSearch for value
Information provisionInformation provision
GamblingGambling
EntertainmentEntertainment
Acquire knowledgeAcquire knowledge
TradeTrade
Beyond Online Search: The road to Beyond Online Search: The road to
profitabilityprofitability
SEARCH
(alternatives)
EVALUATE
(alternatives)TRANSACT
Purchase risk
Purchase frequency
Function v Value
Provision of expertise
High v Low Touch
High v Low Content
Practicality
Purchase Process v
Purchase as an end
Zeng & Reinartz: California Management Review Winter 2003
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77--eleveneleven
FedExFedEx
UPSUPS
SpecializationSpecialization
ScaleScale
FeeFeeTransaction stageTransaction stageLogistic operatorLogistic operator
PaypalPaypal
QRSQRS
Deep process & industry Deep process & industry
knowledgeknowledge
SkillSkill
ScaleScale
Standard setting Standard setting
Technology Technology
enablingenabling
Transaction stageTransaction stageTransaction Transaction
facilitatorfacilitator
Consumer Consumer
ReportReport
Morgan adviceMorgan advice
USwitchUSwitch
Unique content Unique content
Independence and trust Independence and trust
SpecializationSpecialization
ReliabilityReliability
SubscriptionSubscription
Pay per usePay per use
Fee from third Fee from third
partyparty
Fee for expertiseFee for expertise
Evaluation stageEvaluation stageExpertise providerExpertise provider
YahooYahoo
GoogleGoogle
ComparanetComparanet
Assembling skillsAssembling skills
Economies of scaleEconomies of scale
Network effectsNetwork effects
Winner take allWinner take all
AdvertisingAdvertising
Lead generationLead generation
Information stageInformation stageNavigatorNavigator
SonySony
DellDell
LandLands Ends End
CiscoCisco
Economies of scale Economies of scale
DifferentiationDifferentiation
BrandingBranding
Understanding of demandUnderstanding of demand
Integration of Integration of
online/offline operationsonline/offline operations
Product MarginProduct Margin
Brand premiumBrand premium
All three stagesAll three stagesProduct originatorProduct originator
EXAMPLESEXAMPLESCOMPETITIVE COMPETITIVE
ADVANTAGE ADVANTAGE
THROUGHTHROUGH
REVENUE REVENUE
MODELMODEL
CONSUMER CONSUMER
STAGE STAGE
TARGETEDTARGETED
BUSINESS BUSINESS
MODELMODEL
slowslowlowlowlowlowlowlowBEAUTYBEAUTY
High search / low transactionHigh search / low transactionlowlowlowlowhighhighREAL ESTATEREAL ESTATE
fastfastLow/high potentialLow/high potentialLow / high Low / high
potentialpotential
highhighINSURANCEINSURANCE
fastfasthighhighhighhighhighhighFLOWERSFLOWERS
fastfastLow / high Low / high
potentialpotentialhighhighhighhighTELECOM TELECOM
PROVIDERSPROVIDERS
fastfasthighhighhighhighhighhighTRAVEL TRAVEL
fastfasthighhighmediummediumhighhighCOMPUTER COMPUTER
HARDWAREHARDWARE
fastfasthighhighhighhighhighhighMUSICMUSIC
fastfasthighhighhighhighhighhighBROKERAGEBROKERAGE
Slow (only bestsellers)Slow (only bestsellers)lowlowlowlowlowlowNONNON--BUSINESS BUSINESS
BOOKSBOOKS
fastfasthighhighhighhighHigh High BUSINESS BOOKSBUSINESS BOOKS
slowslowlowlowlowlowLow Low GROCERYGROCERY
Medium migrationMedium migrationLow / high Low / high
potentialpotential
Low / high Low / high
potential potential
Low / high Low / high
potentialpotential
USED CARSUSED CARS
faster migration possiblefaster migration possiblelow / mediumlow / mediumlow / mediumlow / mediumhighhighNEW CARSNEW CARS
slowslowlowlowlowlowlowlowLUXURY GOODSLUXURY GOODS
slowslowlowlowlowlowlowlowFURNITUREFURNITURE
CONCLUSIONCONCLUSIONTRANSACTTRANSACTEVALUATEEVALUATESEARCHSEARCH
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CustomatixCustomatix.Com.Com
Customised footwear on the webCustomised footwear on the web
Design your own shoesDesign your own shoes
Delivered to you within 14 days for $85Delivered to you within 14 days for $85
Minimal supply chainMinimal supply chain
The failure of The failure of CustomatixCustomatix.Com.Com
Attracted an influential core consumerAttracted an influential core consumer
but not enoughbut not enough
Underestimated marketing costsUnderestimated marketing costs
Can you evaluate footwear onCan you evaluate footwear on--line?line?
Would you transact for customised footwear Would you transact for customised footwear
onon--line?line?
Undercharged for the productUndercharged for the product
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Internet implications for brand managementInternet implications for brand management
Internet needs to be integrated into overall brand Internet needs to be integrated into overall brand strategystrategy
.And overall corporate strategy.And overall corporate strategy
Potential organizational transparency (BPotential organizational transparency (B--toto--B)B)
New consumer groupsNew consumer groups
Alternative communitiesAlternative communities
Potential to build more complex storiesPotential to build more complex stories
Distribution implicationsDistribution implications
Alliance and alternative partners implicationsAlliance and alternative partners implications
Brand stretchingBrand stretching
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Branding on the InternetBranding on the Internet
Is still in its infancyIs still in its infancy
Are the new communities emerging?Are the new communities emerging?
What are the implications for traditional What are the implications for traditional
branding and marketing?branding and marketing?
Branding, celebrity and sponsorshipBranding, celebrity and sponsorship
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The evolution of an industryThe evolution of an industry
Sponsorship Sponsorship increase brand awareness increase brand awareness
linked to a person or an eventlinked to a person or an event
Evolved into alliance of brand valuesEvolved into alliance of brand values
Brand alliancesBrand alliances
Celebrity brandsCelebrity brands
Evaluation CriteriaEvaluation Criteria
What are you trying to achieve?What are you trying to achieve?
How does it fit within your overall strategy?How does it fit within your overall strategy?
What brand synergies exist?What brand synergies exist?
What budgets are you prepared to allocate?What budgets are you prepared to allocate?
What timescale are you committed too?What timescale are you committed too?
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Sponsorship alternativesSponsorship alternatives
Linked to individual Linked to individual Strong personal connectionsStrong personal connectionsIndividual Individual
Difficult to changeDifficult to changeLong term brand building in Long term brand building in
specific communityspecific community
VenueVenue
Legal, time, risk of Legal, time, risk of
reactionreaction
Cheaper and can be effectiveCheaper and can be effectiveAmbushingAmbushing
Team performanceTeam performanceSpecific audienceSpecific audienceTeamTeam
Cost and limited Cost and limited
saliencesalience
Mass audienceMass audience
Distinctive valuesDistinctive values
Cultural eventCultural event
Awareness, limited Awareness, limited
salience without salience without
communicationcommunication
Mass audienceMass audience
Strong valuesStrong values
Sports eventSports event
ConsiderationsConsiderationsAdvantagesAdvantagesActivityActivity
Sponsorship trends and considerationsSponsorship trends and considerations
Tighter restrictions around eventsTighter restrictions around events
Proliferation of multiple sponsorships Proliferation of multiple sponsorships ownershipownership a dying concepta dying concept
Difficulty of standing out in the clutterDifficulty of standing out in the clutter
Increased consciousness of image rightsIncreased consciousness of image rights
Increased costs to major events / individualsIncreased costs to major events / individuals
Increasing popularity of nonIncreasing popularity of non--traditional events and traditional events and alternative activitiesalternative activities
Expect to spend as much again on communicationExpect to spend as much again on communication
Importance to link into overall brand strategyImportance to link into overall brand strategy
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Brought to you by Brand A and Brought to you by Brand A and
Brand BBrand B
US sponsorship from $2.5 billion in 1990 to US sponsorship from $2.5 billion in 1990 to $8.7 billion in 2000$8.7 billion in 2000
Multiple brand sponsorship has complicated Multiple brand sponsorship has complicated spilloverspillover effectseffects
Controversial sponsors can lower evaluation Controversial sponsors can lower evaluation of less established events and other of less established events and other sponsorssponsors
Stronger events more capable of supporting Stronger events more capable of supporting controversial sponsorscontroversial sponsors
Ruth & Simonin Journal of Advertising Spring 2003
Conclusions on celebrity and Conclusions on celebrity and
sponsorship sponsorship
Assessment of brand value Assessment of brand value
DonDont underestimate costst underestimate costs
Impact beyond awareness is difficult to Impact beyond awareness is difficult to
evaluate (importance of research)evaluate (importance of research)
Sponsorship is seductiveSponsorship is seductive
Seek strategic fitSeek strategic fit
Be conscious of timescale Be conscious of timescale
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