Brand equity

Managing  Brand  Equity      

Dec  5,  2008  

BrandAmplitude,  LLC    All  Rights  Reserved  

Some  Enduring  Brands  

2/20/14   3  

Some  quesGons  to  consider…  

•  What makes brands great? •  Why do some brands endure? •  Why do some brands struggle? •  When should a brand stay the same? •  And when should it change? •  How should brands be launched? •  Why do brands die? •  How do brands become “hot”?

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The  Long  Term  View  

Maintaining  a  brand  requires  constant  vigilance,  knowing  when  to  pile  on,  when  to  ‘twist’  and  when  to  start  over.  

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Maintaining  a  Brand  over  Time    Nivea  and  Dove  

How  do  their  strategies  differ?    Which  is  most  effecGve?  

•  Line  extensions  

•  Brand  revitalizaGon    

•  Importance  of  cultural  relevance  

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Today  

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LINE  EXTENSIONS  

Line  Extend  or  Build  New  Brand?  •  No  hard  and  fast  rules  

–  Lots  of  examples  on  both  sides  

•  Understand  role  of  new  brand  in  por]olio  •  Build  affinity  •  Build  revenue  

•  Need  to  understand  ability  of  exisGng  brand  to  stretch  –  With  consumers  and  trade  –  Assess  risks  as  well  as  rewards  of  stretching  

•  The  “Spandex  Rule”  says  just  because  you  can  doesn’t  mean  you  should!  Severe  penalGes  for  stretching  too  far  

•  But!  Must  be  willing  to  ‘do  to  yourself  before  others  do  unto  you  

Winners  &  Losers  

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http://www.tippingsprung.com/form/index.html

Iams Pet Insurance Febreze Scentstories Black & Decker iron with Downy wrinkle release chamber Antiques Roadshow Furniture (Pulaski license)

What  Were  They  Thinking?  

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Barbie Jewelry

Jaguar X

Harley Cake Decor

Hooters Airline

Maxim Haircolor for Men

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Brand Failures: The Truth about the 100 Biggest Branding Mistakes of

All Time by Matt Haig

No  shortage  of  examples  

Successful  Extensions  Leverage  Equity  

•  Harley  Davidson:  Addressed  target’s  emoGonal  idenGficaGon  needs  to  clothing,  motor  homes,  temporary  tatoos.  

Target  

•  Ralph  Lauren:  Extended  RL’s  Gmeless  sense  of  style  into  other  lifestyle  categories  such  as  linens,  furniture,  restaurants.      

Frame  of  Reference  (FOR)  

•  BIC:  Extended  cheap  disposability  of  its  pens  to  razors.  

Point  of  Difference  (POD)  

•  Arm  &  Hammer:  Extended  baking  soda  rtb  to  toothpaste,  detergent  

•  Hershey:  Extended  chocolate  to  milk  products.  

Reasons  to  Believe  (RTB)  

PosiGoning  Provides  Framework  to    Explore  Equity  Extensions  

Source: Alice Tybout & Tim Calkins, Kellogg on Branding

Extending  VerGcally  •  Urge  to  take  luxury  or  premium  brand  to  booming  value  

segment  can  be  akracGve  –  Tiffany  bouGques  –  Cadillac  Cimarron  

•  David  Aaker  suggests  avoiding  whenever  possible,  beker  to  use  a  subbrand  or  even  beker,  a  totally  new  brand  –  Old  Navy  (Gap)  –  Boston  Piano  (Steinway)  

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Some  Principles  for  Brand  Extensions  

•  High  equity  brands  stretch  farther  

•  Akribute  associaGons  harder  to  stretch  than  abstract  benefits  

•  Successful  extensions  make  future  extensions  easier  

•  Extensions  need  a  reason  for  being  –  avoid  confusing  consumer  by  adding  new  brands  if  necessary  

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REVITALIZING  BRANDS  

When  a  Brand  Loses  Its  Luster  •  Return  to  roots  to  recapture  lost  sources  of  equity  

–  Neutralize  negaGve  associaGons  –  Shore  up  posiGve  associaGons  

•  IdenGfy  and  establish  new  sources  of  equity  

•  Broaden  ways  to  use  the  brand,  use  more  of  the  brand  when  it  is  consumed,  or  use  the  brand  in  more  ways  

•  Reintroduce  to  new  generaGon  of  users  

•  Milk  for  profit  and  reGre  17  

Great  Comebacks  

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How did Triarc revitalize Snapple after its disastrous sale to Quaker?

Principles  for  Revitalizing  •  Understand  what  happened  

•  Be  willing  to  walk  away  

•  Heritage  and  nostalgia  are  NOT  a  strategy  for  brand  revitalizaGon  

•  Act  pre-­‐empGvely  

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BRANDS  &  CULTURE  

Themes  •  Power  of  (authenGc)  storytelling  to  successful  branding  •  RelaGonship  of  self-­‐idenGty  to  consumerism  •  Dangers  of  overreliance  on  branding  at  expense  of  innovaGon  •  How  brands  can  leverage  culture  to  go  beyond  tradiGonal  

markeGng  •  Importance  of  historical  perspecGve  on  brands  •  RelaGonship  of  culture  to  brand  success  •  Ethical  issues  arising  from  gaps  between  product  reality  and  

brand  image  •  Can  tradiGonal  brand  strategy  tools  make  a  brand  great?  •  Difficulty  of  staying  culturally  relevant  over  Gme  

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Branded  Na)on:  The  Marke)ng  of  Megachurch,  College,  Inc.  and  Museumworld  

 “He  argues  that  public  companies  and  non-­‐for  profits  both  build  their  brands  through  telling  stories  and  that  a  good  markeGng  plan  is  one  with  a  memorable  story  (Where’s  the  Beef?)  while  an  ineffecGve  one  is  forgoken  (Herb  of  Burger  King).        Twitchell  goes  on  to  explain  that  the  purpose  of  the  book  is  to  examine  the  non-­‐profit  world  to  determine  if  story  telling  (brand  building)  has  made  it  so  that  the  product  itself  (church  service  or  class)  doesn’t  actually  provide  value,  while  the  brand  name  does.”  

             –  DusGn  Ruch  

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Obsessive  Branding  Disorder    

   “Conley  does  an  excellent  job  taking  a  closer  look  at  the  philosophical  and  social  implicaGons  under  a  branding-­‐heavy  society.  He  asserts  that  managing  an  idenGty  inherently  implies  a  separaGon  from  that  idenGty;  “a  brand  is  something  to  be  controlled  rather  than  any  expression  of  authenGcity,”  he  concludes.”    …  Indeed,  he  urges  all  to  apply  reason  and  intellect  to  see  a  company’s  brand  illusion  for  what  it  is.    

           –  Brian  Weberman  

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Buying  In  

     “EssenGally,  Walker’s  point  is  that  we  buy  brands  and  product  in  order  to  tell  a  story  about  ourselves  to  other  people.  Moreover,  the  brands  that  we  buy  tell  ourselves  a  story  of  who  we  are….I  feel  the  best  point  made  throughout  the  book  is  that  there  is  no  universal  right  way  to  create  a  brand.  This  is  something  that  those  new  to  the  concepts  of  markeGng  must  understand.  Many  Gmes  idenGGes  of  brand  simply  emerge  due  to  the  culture  that  chooses  to  idenGfy  a  a  product  or  brand.”                    –  Ryan  O’Halloran  

     “CiGng  Keech’s  seminal  work  on  cogniGve  dissonance,  (Walker)  argues  that  onsumers  are  actually  akempGng  to  tell  themselves  a  consistent  story  of  who  they  are.  Consumers  don’t  buy  to  keep  up  with  the  Joneses  as  previously  been  thought.  Instead  we  buy  things  in  an  akempt  to  construct  ourselves  a  consistent  story  about  who  we  are.”  –  Dan  Sweet  

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Cul)ng  of  Brands    

 “Atkin  does  an  extraordinary  job  of  showing  the  relaGonship  between  the  building  and  management  of  cults  and  brand  strategy.  Although  the  two  seem  quite  different,  the  tacGcs  used  by  cult  leaders  can  be  effecGvely  deployed  by  brand  managers  to  build  awareness  and  loyalty.  Of  course,  these  tacGcs  can  be  used  by  public  speakers,  human  resources  professionals,  and  other  occupaGons,  but  the  connecGon  that  portrays  the  cult  as  a  brand  is  what  makes  this  percepGon  unique.  Members  of  a  cult  are  fiercely  loyal,  and  this  is  the  characterisGc  that  brand  managers  crave.”                –  Corey  Brei]elder  

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How  Brands  Become  Icons  

     “Holt  argues  that  the  three  tradiGonal  theories  of  branding,  mindshare,  emoGonal,  and  viral  do  not  go  far  enough  in  their  strategy  to  create  an  iconic  brand.  …  Holt’s  model  is  one  that  should  be  reviewed  by  managers  working  to  create  a  truly  iconic  brand.  He  takes  a  stab  at  trying  to  explain  how  one  can  go  from  a  good  brand  to  a  great  brand.  He  focuses  on  the  importance  of  myths  ,  or  stories,  that  a  brand  creates.  The  importance  of  the  myth  makes  sense  in  historical  perspecGve  as  we  have  osen  used  stories  to  express  ourselves  throughout  history.  He  also  interesGngly  discusses  the  populist  markets  which  are  key  in  accepGng  a  myth.  The  populist  market  is  similar  to  spotng  an  early  trend,  and  idenGfying  the  group  entwined  in  the  trend.  Osen  the  brand  may  be  arGculaGng  a  feeling  that  the  person  I  the  group  cannot  arGculate  themselves.  Holt  also  notes  the  vastness  between  a  posiGoning  statement  and  the  creaGve  execuGons  that  result  from  them.”  –  Bridget  Batstone  

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All  Marketers  Are  Liars  

       “His  asserGon  in  the  Gtle  of  the  book  that  ‘all  marketers  are  liars’  is  not  really  what  he  means.  What  Seth  is  trying  to  convey  is  that  marketers  must  create  a  story  around  their  products  and  services  that  the  consumer  can  ‘buy  into’  and  convince  themselves  of  the  lie  that  the  brand  will  truly  make  them  fiker,  smarter,  beker  looking,  more  successful,  etc.  This  may  sound  simple  at  the  surface  level,  but  there  is  a  lot  to  it.”  –  Greg  Lord  

     “Yes,  consumers  should  be  careful  which  story  to  believe  but  marketers  also  have  the  responsibility  to  tell  authenGc  stories….The  book  is  impac]ul  because  he  consistently  emphasized  the  same  point  over  and  over  again  –  markeGng  is  storytelling.  He  makes  his  point  drawing  from  various  stories  by  Starbucks,  John  Kerry,  Blue  Nile,  etc.    Whether  it  is  coffee,  a  candidate,  or  diamonds,  each  brand  shares  the  similarity  of  telling  an  authenGc  story  that  fits  with  consumers’  world  view  and  something  they  can  believe  in.”  –  Anne  Lin  

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Three  Discussion  QuesGons  1.  Is  the  story  telling  paradigm  realisGc    or  useful  as  a  brand  strategy  

framework?  What  is  the  obligaGon  of  brand  marketers  to  be  ‘authenGc’?  Do  customers  create  the  ‘lie’  or  do  marketers?  –  All  Marketers  are  Liars,  Buying  In  

3.  Has  the  pracGce  of  brand  markeGng  been  taken  too  far  when  it  is  applied  to  churches,  museums,  ciGes  and  ideas?  What  is  the  downside  of  branding  and  what  is  the  marketers’  ethical  obligaGon  when  pracGcing?  •  Obsessive  Branding  Disorder,  Branded  NaGon  

5.  Should  brand  strategies  include  a  ‘cultural’  brief  as  well  as  a  posiGoning?  How  should  the  importance  of  the  culture  be  reflected  in  brand  strategy?  –  Cult  Branding,  How  Brands  Become  Icons  

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For Wednesday:

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