Branding as a Marketing Strategy Brief

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BRANDING AS A MARKETING

STRATEGY

A Perspective for A Common Platform

Proposed by Rahim Jabbar

Jakarta ,11th May 2005

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Points of discussions (1)

• Marketing as a Core Business Process – What Is Business?– The Essence Of Transaction/Exchange Process– The Essence Of Values Exchanged– Three Kinds Of Business In Commercial Organization– Basic Strategic Marketing Questions For The Business – Marketing: From Commodity to Brand – General Stages of Segmentation, Targeting &

Positioning – Stage-gate Product Development Process– Critical Success Factors for Marketing – Marketing as a “social and cultural engineering

process”• Main Points of the Marketing Concept • Basic Concepts of the Brand

– Fundamentals of Brand– Components of A Brand– Product/Service as the Basis– Name as the Identifier and Relater– Packaging as the Presenter – Message and Communication as the Purveyor

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Points of discussions (2)

• The Process of Brand Development – From Customer Values to Brand Concept– Brand Concept and Brand Architecture

• The Positioning for A Brand– The Concept of Positioning– Factors to be Considered – Positioning, Brand Development and Target Segment– Questions to Develop Message Contents and

Advertising

• Managing the Brand– Brand Management – Reaching the End-Customers– Communications and Advertising– Brand Communications: Hard and Soft -Sell – Objectives of Advertising, Promotion and

Merchandising– Components of A Winning Offer– Operational Aspects of Brand Equity.

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Points of discussions (3) • The Paths Towards Developing A Global Brand

– The Paths: Elegant Concept and Excellent Execution– Pre-requisites to Develop a Global Brand– Requirements to Nurture and Maintain a Global Brand– The Targets for a Global Brands:

• The five segments of the global consumers• The 11 segments of transnational consumers• The Social and Economic Classes of the Global

Consumers – Learning from the Leaders : 100 Global Most Valuable

Brands – Global Brand Necessitates a World-Class Organization

• The Concepts of Strategy

– A Definition of Strategy– The Dimensions of Strategy– Practical Applications of Strategy– Strategy: Creating the Future Today– Practical Strategic Questions– Strategic Management Process– Strategic Decision Making Process– Focal Points of Different Views of Strategy– Managing Key Strategic Issues to Develop a Winning

Strategy

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MARKETING AS A COREELEMENT OF BUSINESS ACTIVITY

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WHAT IS BUSINESS ?

TheOwners of

Capital/Resources

TheFirms

INPUTS

INVEST

THROUGHPUTS TARGETMARKET

The Business Processes

THE RETURNS

OUTPUTS

The Transaction/Exchanges

RETURNOn

INVEST-MENT

Copyright Rahim Jabbar /2002

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What is the ESSENCE/NATURE of TRANSACTION PROCESS?

THEFIRM

CONSUMERS/CUSTOMERS

PRODUCT/

SERVICETHAT PROVIDES VALUES TO THE

PRO

DU

CES/

PRO

VID

ES

THE

OFFER

SATISFACTION

THE

MONEY

TRANSACTION

INCOME/EARNING

THE EXCHANGEPROCESS

Copyright Rahim Jabbar/1999

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THE ESSENCE OF VALUESTHAT ARE DERIVED FROM CONSUMPTION

GOODS

IDEAS

SERVICES

EVENTS

ENTITIES

THEOFFE

R

ACQUIRED

USED

DISPOSED

THEENVIRONMENT

CONSUMER

GOALS

WANTS

NEEDS

ACHIEVED

SATISFIED

FULFILLED

VALUES

VALUES : SPECIAL MEANINGS ATTACHED TO SPECIFIC CONSUMPTION OCCASIONS/ EVENTS

VALUES

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Three Kinds of Business in Commercial Organization

THE COMMERCIALENTERPRISE

ORGANIZATION

INFRA-STRUCTURE

PRO

DUCT/S

ERVIC

E INN

OVATIO

NCUSTO

MER

REL

ATIO

NSH

IP

To

find

and

crea

te c

onsu

mer

s/cu

stom

ers a

nd

build

and

man

age

rela

tions

hip

with

them

To conceive appealing/attractive new product/service and

figure out how to bring them

to the market speedily To build and manage facilities for high volume,

repetitive operational tasks (manufacturing, storagelogistics, communications)

Source : Adapted from John Hagel III and Marc Singer, Unbundling the Organization< (2001)

SPEED is the Key:The Battle for Talent,Employee centered,

coddling the creative stars

Battle for SCOPE:

Service-oriented,consumer-comes-

first mentality

Battle for SCALE:

High fixed cost,Cost focused,

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1. Where are we now?

Consumer/Customers Competitors

P.E.S.T.

3. Why are we where we are now?

S.W.O.T

Company

Vision

4. What do we want to be ? Where do we want to go ?

Mission

S.T.P.

Segmentation

Targeting

Positioning

Portfolio Strategy

6. Which way is the best ?

Basic Strategic Marketing Questions for the Business

5. How can we go there ? Is there any other alternatives ?How many alternatives do we have ?

Development of strategic options

6.How do we implement the selected strategy ?

Evaluation of strategic options

Mixing and matching the Marketing Mix Elements

Creation

Development

Activation7.How do we ensure our reaching the selected destination ?

Control of implementation

Market Share ProfitabilityBrand Health


2. What separates the winners from the losers?

Critical Success Factors

Potentiality

Competitiveness

Relevant segmentation variables

Commodity or Brand?

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1. How is our current situation?

Constraints

Current Position

2. What is (are) our objective(s)?

Marketing Vision/Mission

Capabilities

Identify segment variables

4. How many segments are there? How is the profile of each one ?

Segment the marketsProfile each major Segment

6. What positions ara available for each target segment? (Gap analysis)

General Stages of Segmentation, Targeting, Positioning

5. What specific segment (s) do we want to target? Why ?

Potentiality

Map the market & identify the positions of current offers

7.How do we fill the selected position ?

Create & developalternative positioning concepts


AttractivenessTarget selection

Identify alternative “developable” positions

Select the most appropriate concepts

Clear

Correct

Competitive8.How do we make it known to the target ?

Create & developbrand & its communication

3. What is the level of variability of our target markets ? Can we group them into a number of segments?

High variability ->segments Low variability -> segmentation not needed STOP

12Source: Adapted from Braun’s Mission Statement as quoted by Bruce & Jevnaker, “ Management of Design Alliances”, Sustaining Competitive Advantage”, Wiley, 1998 . (The two statements within brackets are the writer’s addition)

MARKETING:‘STAGE-GATE” PRODUCT DEVELOPMENT PHASES

Stage1

IDEASGate

1Gate

2Stage

2Gate

3Stage

3Gate

4Stage

4Gate

5Stage

5

Ideation

P.I.R.

InitialScreen

SecondScreen

Decisionon

BusinessCase

PostDevelopment

Review

Pre-Commercialization

andBusinessAnalysis

PostImplementation

Review

PreliminaryInvestigation

DetailedInvestigation

(BuildBusiness

Case)

Development Testingand

Validation

FullProduction

andMarket Launch

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MARKETING AS SOCIO-CULTURAL ENGINEERING PROCESS :

A view from the hinterland

Individualspecificity

A particularSocio-cultural

millieu

The universalhumannature

Humanbeings

An

Integrated

Set of

stimuli

TheBRAND

Rahim Jabbar/1999

Being‘ENGINEERED”

Individualspecificity

A particularSocio-cultural

millieu

The universalhumannature

CONSUMERS

To consumecertain PRODUCT

and to choose a

specific BRAND

Transformed into

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MAIN POINTS OF THEMARKETING CONCEPTS

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MAIN POINTS OF THE MARKETING CONCEPTS (1)

1. Marketing is a major element of the core business processes of creating value added through inducing and stimulating transactions/exchanges

2. Business transaction can only be realized through offering product/service (=the offer) as a means of exchanging values between the consumers/customers/clients and the

firms/companies.

3. Consumers/customers/clients will consider any offer (be it product or service) as bringing values to them if the offer help them achieve their goals , satisfy their wants and fulfill their needs

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4. Values, therefore can be seen as special meanings attached to a particular consumption occasion (of using or consuming a product or the event of receiving a particular service. (pragmatic/utilitarian use of the word “value”)

5. At this point, marketers have two options: go with the product as a commodity wrap the values offered by the product through branding

6. Branding is a strategic option for marketing a product. Branding is a means of wrapping the values surrounding the product.

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7. The task of marketing function is to find and create consumers/ customers/clients by transforming individual persons or groups of people from being “lay people in the streets” into obtaining some added values at consuming the offers/using the product or becoming recipients of the services.

8. After this transformation, the task is to manage the relationship

(Customer/Consumer Relationship Management).

9. Managerially, the marketing process consists of development, creation, and activation of the marketing mix for the offer (product or service) destined for a specific target in mind.

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10. These days rarely do we find single product for single market

(a single product-market category). The overwhelming majority

of categories comprise of multi-products targeted at a variety of

different groups of consumers/customers /clients. ( Each

group is conveniently called a segment of the market).

11. Due to the above reasons, the development of any offer (be it

product or service) should go through the process of S.T.P.

(Segmentation, Targeting and Positioning)


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12. Segmentation is the way you partition the market based on certain approach. Segmenting the market would facilitate in choosing the specific part of the market you want to target.

13. Targeting is the process matching your product/offer to specific part of the market.

14. Positioning is the way you differentiate your product/offer from same product category targeted to the same segment.


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BASIC CONCEPTS OF THE BRAND

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OBJECT

NAME

MEANINGS &ASSOCIATIONS

VALUE - ADDED GENERATED BY BRAND

The value ofre - assurance

TRANSFORMATION EXPERIENCESubject experience of using a brand :

promotive/de-motive effects - of brand on physical product characteristics

Differentiation/ “Brand Personality”A relevant emotional metaphor linked with social dimensions Outer Directed

Inner Directed

Badge of Origin

Authenticity

Promise of Performance

Replicability

FUNDAMENTALS OF BRAND

Sources : Excerptedfrom various sourcesand business experiences

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THE BRANDS : COMPONENTS OF A

BRAND

THEBASIS

The Product/Service

THE IDENTIFIER/

RELATOR

Brand Name/Logo

THEPURVEYOR

The Message/Communication/

Advert.

THE PRESENTER

The Packaging

Should be matching toeach other

Should be matching toeach other

Should be matching to each other

THE PROXY OF

VALUE

ThePrice

Should be matching


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THE BRANDS:PRODUCT/SERVICE AS THE BASIS

HABITS AND USAGE DATA/INFO

USERS THE PRODUCTBenefits Attributes

ChoiceCriteri

a

OverallPerformance

Measure

Dimensions of Product Performance

SpecificPositives/Negatives

Physicalattributes

Effectattributes

Processattributes Benefit

attributes

Uses/Usages

Development

of consumervocabulary

Correlation !!!

CopyrightRahim Jabbar/1999

VALUES

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THE BRANDS :NAME AS THE IDENTIFIER AND RELATOR

Meanings

Associations

Sound/rhyming

Shapeof

Fonts Symbols

Socio-culturalcontext

TheBRANDNAME

Commonalityof association -> CORE

A B

C

Page 7

ImpactingAffective

& Cognitiveaspects of

human ImpactingconsumerperceptionCopyright

Rahim Jabbar/1999

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THE BRANDS :PACKAGING AS THE PRESENTER

Colour

Associations

Shape

Logo/Icon Symbols

Socio-culturalcontext

ThePACKAGING

Materials

Attributes

ImpactingHumanMood

Impactingcognitive &

affectiveaspects of

humanbeings

Impactingconsumerperceptio

n


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THE BRANDS :MESSAGES, COMMUNICATION & ADVERTISING

AS THE PURVEYORWhat to say and How to say it

What ?(THE

PROMISE)

How ?(The Way)

To Whom?(THE

TARGET)

CommunicationPsychology(Symbology,

tone, pitch,etc)

Creativity(Big Idea)

ConsumerPsychology

ADVERTISINGAND

COMMUNICATIONMATERIALS

(AUDIO/VISUALS)

Why ?(THE

SUPPORTINGFACT

COPYSTRATEGY

SELECTEDPOSITIONING

Should be

CORRECT

Should be

CLEAR

Should be

COMPETITIVE

For the

PRODUCT

For the

MARKET

Should considerLONG-TERM

HEALTH OF THEBRAND


Should be

CREDIBLE

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THE PROCESS OFBRAND DEVELOPMENT

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FROM CUSTOMERS VALUES TO BRAND CONCEPT

GOALS

WANTS

NEEDS

VALUES : SPECIAL MEANINGS

ATTACHED TO SPECIFIC USAGE/CONSUMPTION

OCCASIONS/EVENTS BY CONSUMERS/CUSTOMERS/

CLIENTS WHEN:• Their goals are achieved• Their needs are fulfilled• Their wants are satisfied

CONSUMERS’/CUSTOMERS’/

CLIENTS’VALUES

Social/Cultural*)

Physiological/

Biological

Psychological

BENEFITS

BENEFITS

THATBRING

BENEFITSAND

SATISFYWANTS,

ETC.

ATTRIBUTES

Sensorial(Visual/

Tactile/Taste)

Physical

Process

Effects

BRAND

PRODUCT

SERVICES

IDEAS

EVENTS

ENTITIES

A W R A P P E R & C A R R I E R OF

To be achieved

To be fulfilled

COPYRIGHT Rahim Jabbar 2002

*)For organization (B-to-B) the group includes economic, technical and expertise benefits

To be satisfied

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FROM CUSTOMERS VALUES TO BRAND CONCEPT

Developing a brand should start from core values that uniquely define the essence of your offer (product or service). The consumers/customers/clients (“market segment”) will happily buy and consume product or brand that is

believed to help them achieve their goals, fulfill their needs and satisfy their wants. In other words, they will surely consider anything

that brings values to them.(“Beauty is in the eyes of the beholder”).

For example, people use furniture to give comfort and convenience to their life (i.e. not having to always stand neither sit nor lay their body on the

floor). Furniture is the provider of values to the users, through giving the benefits of comfort (physiological need) and convenience (psychological needs). The maker arranges the properties of certain materials and design

that give the attributes which deliver the required benefits. (“KALAU DUDUK LUPA BERDIRI’ – WHEN SITTING ON THIS, YOU

WILL FORGET TO STAND UP) )

COPYRIGHT Rahim Jabbar 2002

*)For organization (B-to-B) the group includes economic, technical and expertise benefits

BRAND CONCEPT:

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Brand Concept and Brand Anatomy

VALUES

Exploring,describing,defining

sought by the target market

In theforms of

GOALS/NEEDS/WANTSTo be achieved, realized, satisfied

Translatedinto BENEFITS

Specific

required

Translatedinto ATTRIBUTES

Specific

that bring BENEFITS

Thatsupport

PROPERTIES/CHARACTE-

RISTICS

PRODUCTS

SERVICES

IDEAS

EVENTS

BRAND CONCEPT

Positioning Opportunities

Ideas & Innovations

BRANDANATOMY:

A PARTICULARARRANGEMENT OF

BRAND COMPONENTS TO PRODUCE A

UNIQUE MIXOF VALUES

THE PROCESSOF SELECTINGAN EFFECTIVE& POWERFUL

BRAND

that represent VALUES

BRAND DEVELOPMENT PROCESS:• If you have a product already, start with the core values that constitute the essence of your offer. Then match this with the consumer segment that seek those essential values. The segment is your target.• If you do not have a product yet, find what core values are sought your target market. Then develop and create a product/brand that possess properties and characteristics that bring benefits of offering the values they look for.• The brand concept is the statement of encapsulation of essential values that your product offer to the target. The brand concept should be able to fill in the best position in the mind of the target, in order to create a powerful brand. As such, you need to combine and arrange the brand components (product/service characteristics, name, packaging, core messages , and price) within a harmonious, balanced and coherent architecture).

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Brand Concept and Brand Anatomy

BRAND DEVELOPMENT PROCESS:• If you have a product already, start with the core values that constitute the

essence of your offer.• Then match this with the consumer segment

• that seek those essential values. • The segment is your target.

• If you do not have a product yet, find what core values are sought your target market.

Then develop and create a product/brand that possess properties and characteristics that bring benefits of offering

• the values they look for.The brand concept is the statement of encapsulation of essential values that

your product offer to the target. The brand concept should be able to fill in the best position in the mind of

the target, in order to create a powerful brand. As such, you need to combine and arrange the brand components

(product/service characteristics, name, packaging, core messages , and price) within a harmonious, balanced and coherent design).

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THE POSITIONINGFOR A BRAND

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Positioning : The Concept

• “Positioning is what you do to the mind of the prospect. That is how you position your product/brand in the mind of the prospect.

• Therefore, to be effective,

• Positioning has to be done with the target (consumers/market) in mind• The marketer should understand :

• What explains their behaviour (what motivates them; what benefits are sought.

• The degree to which his/her product/brand satisfy the target’s needs (Brand Health Indicator/Brand Equity Monitor)

• The degree to which the competitors’ products/brands satisfy the target’s needs (Customer Satisfaction Monitor, Competitive

Brand Mapping, etc.) )

Source: Adapted from Al Ries & Jack Trout, “Positioning, the Battle for Your Mind” (1989)

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Positioning : Factors to be Consideredand Potential Sources

• Positioning is to find a position of your offer ( in the mind of the prospect) that is THE BEST for it and THE MOST APPROPRIATE FOR

THE TARGET MARKET

• Factors to be considered, therefore, should be :• the product/service itself (What makes it so unique? What can make it

distinctive ?). The followings can be explored : a. Technical innovation (GSM, G-4 )

b. Improved Performance (Corolla Altis) c. Perceived Superiority (Intel Computer Microchip) d. New benefits (Sony Walkman, G-3 Phone in Japan)

• the Company that makes it (What makes the Company so special?). Examples :Baygon --> Bayer guarantees Quality)

• Consumer Preference : Citibank, the House of Money.• The Competitive Environment. The followings can be explored :

a. Market segmentation (AMEX Card) b. Re-classifying competitors (BMW vs. Mercedes)

c. Price/Value (Promag vs. Mylanta)

Source: Adapted from Al Ries & Jack Trout, “Positioning, the Battle for Your Mind” (1989)

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THE POSITIONING:POSITIONING, BRAND DEVELOPMENT

AND TARGET SEGMENT

THEBASIS

The Product/Service

THE IDENTIFIER/

RELATOR

Brand Name/Logo

THEPURVEYOR

The Message/Communication/

Advert.

THE PRESENTER

The Packaging

Should be matching to

Page 5

THE PROXY OF

VALUE

ThePrice


SelectedPOSITION

withinTARGET

SEGMENT

THE SELECTED

POSITIONING

Correct for the product

Direct the development of the offer

Correct for the targetsegment

BRANDCONCEPT

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Brand Positioning: Basic Questions to Develop the Message Content and Communication Strategy

1. Brand Vision : What is the ultimate goal you have in mind for your brand.2. Brand Mission : What role will it play in the market? (How many roles are there? What are they ?) What role will it play in the Company’s portfolio?. (How many roles are there? What are they ?)3. Basic Positioning : How you want it to be seen comparatively among the offers claiming the same/similar benefits? (targeted to the same segment) Acid tests are : * Is it clear ? (unmistakable v.s. the others?) * Is it correct ? (for the brand ? for the market? for the target group?) * Is it competitive ? (better than the others ? able to challenge market leaders/major players in the category/segment/sub-segment ?) 4. Consumer end benefits: What will it do for me ? (functionally ? Emotionally ? Socially ? Etc.) 5. Reasons why : What make/will make the consumers believe that it will give the end benefits stated ?6. Proofs : Why should your brand delivers its promise ?7. Support benefits : What other benefits I get? (The consumer questions)

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MANAGINGTHE BRAND

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MANAGING THE BRAND

PRODUCT/SERVICE

The Basis/Foundation

NAME/LOGO

The Identifier& Relator

COREMESSAGES

The Purveyor

PACKAGING

The Presenter

PRICE

Proxy ofValue

DISTRIBUTED

TARGETMARKET

Copyright: Rahim Jabbar, 2004

ADVERTISED

BRAND MANAGEMENT: Managing brand covers developing, rejuvenating, extending, marketing the brand (that includes distributing and advertising to the target market). The objective of brand management is to develop, create

and strengthen equity of the brand. (Brand equity is the ability of a brand to gain market share, through first having aa reasonable share of heart and share of mind).

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MANAGING THE BRANDREACHING THE END-CUSTOMERS

MANUFACTURER/SUPPLIER

DIRECT INDIRECT

DIRECTSALES

TELE-MARKETING

FACE-TOFACE

DIRECTMARKETING

SPECIALIZEDRETAILSTORE

WHOLLYOWNED

FRAN-CHISE RETAILERS RETAILERS RETAILERS

WHOLESALER

DISTRIBUTORS

WHOLESALER

THEINTERNET

E N D C U S T O M E R S

Source: Capon & Gilbert :” Marketing Management for the 21st Century”

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MANAGING THE BRAND: COMMUNICATION & ADVERTISING

The Essence of Marketing Communication Process

WHO WHATWHAT

EFFECTSSAYS IN WHAT CHANNEL

TO WHOM WITH

MARKETEERS

EXPOSES

THEOFFER

PROMOTE

ADVERTISE

DISPLAY

ABOVETHELINE

BELOWTHELINE

THETARGET

OTHER-WISE

PREFERENCE


BRAND COMMUNICATION:

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* Hard-Sell : How does brand communication persuade people to buy ?

MessagesTransmission/Transportation

Persuasion &play - back

TransformedBehaviour

Buying

* Soft-Sell : How does communication add values through symbols that carry specific meanings ?

Messages Myths/Rituals

Modifiedsharedculture

Attitudinalchange

Behaviouralchange

Buying

Symbols

Meanings

Values

MANAGING THE BRAND:BRAND COMMUNICATION

Soft-Sell vs Hard-Sell

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1.To create awareness of the product/brand

2.To create desire for the product/brand

(Stress customer benefits & their values)

3.To influence customer attitudes to the product (e.g.”caring”,etc)

4.To create brand loyalty

5.To persuade customers to buy

6.To persuade the customers to visit the outlets, compared to others

7.To remind customers to buy

8.To inform the market about the product/brand

9.To provide re-assurance about the product/brand

10.To be always ethical

Source: Adapted from Braun’s Mission Statement as quoted by Bruce & Jevnaker, “ Management of Design Alliances”, Sustaining Competitive Advantage”, Wiley, 1998 . (The two statements within brackets are the writer’s addition)

MANAGING THE BRANDS:The Objectives of Advertising, Promotion and Merchandising (APM)

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WinningOFFER

(BRAND/PRODUCT)

Competitive

PREFE-

RENCE

Competitive

PREVA-

LENCE

Competitive

PRICE/VALUERATIOPRICE

ProductPERFORM

-ANCE

COMMUNICATIONAPPEAL

MANAGING THE BRAND:COMPONENTS OF A WINNING OFFER

PerceivedPERFORMANCE

ActualPERFORMANCE

Psycho-logicalneeds

Socialneeds

Cultural

needs

VISI-BILIT

Y

AUDIB-ILITY

AVAIL-ABILITY

TARGETCONSUMERS

Physio-logicalneeds

VISUAL/AESTHETI

CAPPEAL

SHARE OF VISUAL

MATERIALSSHARE OF

SHELF SPACE

SHARE OF VOICE

LEVEL OFEXPOSURE

DISTRIBUTION

PUSH

PULL

MEA-SURE

OFDEG-REEOF FIT

BET-WEENCON-SUM-ERS’

NEEDSAND THE

OFFER


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MANAGING THE BRAND : Operational Aspects of Brand Equity

Advertising Quality

Advertising weight

– Qualitative research results– Take out

– Brand Support Expenditure– Share of voices (Spend & TARPS)

Perceived Quality

Price

– Actual Quality / CPT

– Price differentials

Spontaneous Awareness

Aided Awareness

– Advertising Awareness– Brand Awareness

– Source of Awareness

Numeric Distribution

Weighted Distribution

– Numeric Distribution– By channel

– Sales per distribution points

Awareness Effects

Distribution Effects

Value

Advertising Effects

Consumer Pull

Operational Effects (Push)

Brand Equity

(6%)

(28%)

(72%)

(50%)

(50%)

(37%)

(63%)

(100%)

(94%)

(95%)

(5%)

(99%)

(1%)

(82%)

(18%)

Targets: Marketing– Consumer Profile– Volume &Share

Targets: Financials– NTO and margins

– Brand trial & re-purchase– Switching in and out

Brand Performance– Volume growth– Share/share development– Loyalty

– Brand Image

Source: A study on a fast moving consumer product market in Malaysia (1985-1995)

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THE PATHS TOWARDS CREATING & DEVELOPING

A GLOBAL BRAND

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THE PATHS TOWARDS CREATING A GLOBAL BRAND

ELEGANTCONCEPTUALFOUNDATIONS

EFFECTIVE EXCELLENTEXECUTIONS

FORWARD THINKINGAbility to pre-select a category/segment that will mostlikely prove to be long lasting

Source : Analyzed by Rahim Jabbar from a series of articles on “The Best 100 Global Brands”,

Business Weeks, July 2001, and August 5, 2002.

Pre-requisites to develop

a Global Brand

Requirements to nurture and

maintaina Global Brand

UNIVERSAL CORE SEEDSPosses universal core seeds that can develop into acceptability and appeal to transnational audience/consumers

LEADERSHIP SEEDSPosses the ability to lead the category/segment wherethe brand operates

CONTEMPORANEOUS RELEVANCEPosses the ability to remain relevant to target consumersthrough the properties that can be regularly reformedto become always contemporary.

PROTECTABILITYAbility to legally protect the Trade Mark wherever it operates

WORLD CLASS MARKETING COMPETENCEPosses the necessary and sufficient marketing competenceto support effective and excellent marketing activities

SUFFICIENT AND EFFICIENT FINANCIAL MUSCLESPosses the necessary, sufficient and efficient financial muscles to be able support effective and excellent marketing activities that can reach above necessary threshold level.

STABILITYAbility to maintain the brand to remain stable throughoutthe peaks and troughs of market environment

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Pre-requisites to develop a Global Brand

FORWARD THINKINGAbility to pre-select a category/segment that will mostlikely prove to be long lasting



UNIVERSAL CORE SEEDSPosses universal core seeds that can develop into acceptability and appeal to transnational audience/consumers

LEADERSHIP SEEDSPosses the ability to lead the category/segment wherethe brand operates

CONTEMPORANEOUS RELEVANCEPosses the ability to remain relevant to target consumersthrough the properties that can be regularly reformedto become always contemporary.

THEPRE-

REQUSITES

Contains “stretchable cultural values” (parts of the “cultural universals”) that make it possess international potentialityand thus the ability to penetrate multinational markets .

Contains the “core values” that can be maintained across cultural boundaries, whereas the “surface structure of itscommunications” can be easily “localized”, whilst maintainingits perception of universality and international-ness.

Having a competitive quality of values offered to the target consumers/customers.

Having a “point-of-difference” that creates a strong influence on consumers that is able to make it the brand of choice within the product category/segment where it operates

Having a “strong competitive advantage”with a flexible twist

Having the ability to create, develop and nurture line extensions product lines under the “values of family umbrella”

The Company (its people) have gained a good understandingand working knowledge on transnational consumer culture.

The Company (its people) have gained a good understandingon the likely forces in the future that might shape thetransnational consumer culture.

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Requirements to nurture and maintain a Global Brand



PROTECTABILITYAbility to legally protect the Trade Mark wherever it operates

WORLD CLASS MARKETING COMPETENCEPosses the necessary and sufficient marketing competenceto support effective and excellent marketing activities

SUFFICIENT AND EFFICIENT FINANCIAL MUSCLESPosses the necessary, sufficient and efficient financial muscles to be able support effective and excellent marketing activities that can reach above necessary threshold level.

STABILITYAbility to maintain the brand to remain stable throughoutthe peaks and troughs of market environment

THEREQUIREMENTS

The Brand as a Trade Mark can be legally registered that willensure the strength of Company’s ownership of the Brand

The Trade Mark is own-able across national boundaries

The Company has the legal capability to defend any disputeswith regards to ownership of the Trade Mark

The Company’s marketing people have got unending sourcesof creativity to design and execute excellent, effective and efficient marketing activities

The Company’s marketing people have got the capability to conduct high quality marketing strategies and tactics

The Company’s marketing people have got the capability to conduct high quality distribution activities and trade marketingoperations

The Company has got an excellent cash-flow plans that willensure continuous flows of necessary funds to finance appropriatemarketing and communication activities at optimum level toachieve “share of prevalence” above the required threshold.

Through its excellent marketing & communication activities, the Company has been able to develop, nurture and maintain theBrand(s) that have got the ability to command consistent andfocused consumer/customer loyalty.

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THE PATHS TOWARDS CREATING A GLOBAL BRAND:THE ELEVEN SEGMENTS OF THE TRANSNATIONAL CONSUMER CULTURE

Source : Adapted from “Ueltzhoffer & Ascheberg in “Transnational Consumer Culture & Social Millieus”, Journal of Market Research Society, January 1999(( c) Sigma)

SOCIAL STATUS

Upper Class

Upper Middle Class

MiddleMiddle Class

LowerMiddle Class

LowerClass

UpperConservative

Segment

BASIC ORIENTATION

M a t e r i a l i s mT r a d i t i o n a l H e d o n i s m P o s t M a t e r i a l i s m S u b j e c t i s m

“To preserve”“To have”&“To defend”

“To buy”&“To consume”

“To indulge”“To be” &“To share”

“To have” &“To sense”&“To indulge”

Status & Property Consumption

TraditionalRural

Segment U n d e r p r i v i l e g e d S e g m e n t

T r a d i t i o n a lB l u e

C o l l a rS e g m e n t

T r a d i t i o n a l

M a i n s t r e a m

S e g m e n t

S o c i a l C l i m b e rS e g m e n t

U p p e r L i b e r a lS e g m e n t

P o s t

M o d e r n

S e g m e n tS o c i o -

C r i t i c a l

S e g m e n t

(1) (2) (3)

(4)

(5)

M o d e r n

M a i n s t r e a m

C o u n t e r

C u l t u r e

(6)(7)

(8)

(9)

(10)

(11)

SOCIAL

CLASS

50

THE PATHS TOWARDS CREATING A GLOBAL BRAND:THE FIVE SEGMENTS OF THE GLOBAL CONSUMERS

Source : Adapted from,Charles Mitchell,”A Short Course in “International Business Culture ”, World Trade Press, Novato, CA, USA, 2000.

THE STRIVERS ( 23% of Adults in the World)They highly appreciate material wealth, material possessions, status, ambitions and power.Most of them are mature ages (“half-way within average life expectancy ”), skewed moreamong men. Most of them are found amongst the people in both developing and developedeconomies in Asia and the Pacific Rim

THEFIVE SEGMENTS

OF GLOBALCONSUMERS

THE DEVOUTS ( 22% of Adults in the World)They subscribe to more traditional compared to the Strivers. They highly appreciate loyalty, appreciatethe elders and tend to be obedient to their advice. They are found only amongst the people in AsiaAfrica and the Middle East. As consumers, they would prefer local brands compared to internationalbrands.

THE ALTRUISTS ( 18% of Adults in the World)The Altruists are focused more towards outside of themselves. They are highly very well educated,and are very interested in social causes. They are skewed towards older age group (averaging at 44)and are found more among women. They are found mostly amongst the people in Latin America,North America and Russia

THE INTIMATES ( 15% of Adults in the World)The Intimates are focused more towards relationships around household members, families, friendsand business colleagues. They are found mostly amongst the people in United States of America,Britain and Central European Countries. They are the “people’s people”. Half of them are heavy userof media, particularly TV.

THE FUN SEEKERS ( 12% of Adults in the World)The Fun Seekers are skewed towards younger age group, in fact they are the youngest. They are focused more towards seeking funs and adventurous experiences. They highly enjoy elegantappearances.. They frequent bars, discos, night clubs, restaurants and “greedily grabbing electronicmedia. This group has the highest affinity to the global life styles.

THE CREATIVES ( 10% of Adults in the World)The Creatives are found mostly amongst the techno-nerds, and highly appreciate learning and technology. As they very heavy users of the Internet, they are likely to be found in the highlydeveloped countries.

51

Pre-requisites to develop a Global Brand:Who are our targets?

A-ClassTHRIVING

Source : CACI, 1997

THE GROUPS OF SOCIAL

STRATA

• 1. Wealthy achievers, suburban areas.

• 2. Affluent grays, rural areas.

• 3. Prosperous pensioners, retirement areas.

B-ClassEXPANDING

C-ClassRISING

D-ClassSETTLING

E-ClassASPIRING

F-ClassSTRIVING

• 4. Affluent executives, family areas.

• 5. Well-off workers, family areas.

• 6. Affluent urbanites, town & city .

• 7. Prosperous professionals, metropolitan areas

• 8. Better off executives, inner city areas.

• 9. Comfortable middle ages, mature home owning areas.

• 10. Skilled workers, home owning areas.

• 11. New home owners, mature communities.

• 12. White collar workers, better-off multi-ethnic areas

• 13. Older people, less prosperous areas

• 14. Council estate residents, better homes

• 15. Council estate residents, high unemployment

• 16. Council estate residents, greatest hardship

• 17. People multi-ethnic, low-income areas

52

LEARNING FROM THE LEADERS: 100 MOST VALUABLE GLOBAL BRANDS

53

B R A N D TAG-LINE1 COCA-COLA Life tastes good 2 MICROSOFT Where do you want to go today?3 IBM And, that's when it hits you. You are ready for IBM4 GE We bring good things to life5 NOKIA Connecting people6 INTEL The center of your digital world7 DISNEY Come and live the magic8 FORD Better ideas. Driven by you9 MC DONALDS Did somebody say Mc Donald?

Now.. "We love to see you smile".10 AT&T Boundless11 MARLBORO (Come to) Marlboro Country12 MERCEDES Follow whoever you are13 CITIBANK Where money lives14 TOYOTA The car in front is a Toyota15 HEWLETT-PACKARD Invent16 CISCO SYSTEM Empowering the Internet generation17 AMERICAN EXPRESS Do not leave home without it.18 GILLETTE Innovation is Gillette19 MERRILL LYNCH Ask Merrill20 SONY Change the way you see the world21 HONDA Independent thinking (Also:"Simplify")22 BMW The ultimate driving machine23 NESCAFE Awaken your senses24 COMPAQ Inspiration technology25 ORACLE Oracle software powers the Internet

Source : Business Week, 2001

THE TOP 100 GLOBAL BRANDS AND THEIR SLOGANS

54Source : Business Week, 2001

THE TOP 100 GLOBAL BRANDS AND THEIR SLOGANS (Continued-1)

B R A N D TAG-LINE26 BUDWEISER True (Also "This Bud's for you")27 KODAK Share moments. Share life.28 MERCK It's your future. Be there.29 NINTENDO Feel everything30 PFIZER Life is our life's work31 GAP Gap Denim. Wear it now.32 DELL Connecting to your needs33 GOLDMAN SACHS Minds. Wide open.34 NIKE Just do it35 VOLKSWAGEN Driver wanted.36 ERICSON Make yourself heard37 HEINZ Mine's gotta have Heinz38 LOUIS VUITTON The spirit of travel39 KELLOGG'S Have you woken up to Kellogg's cornflakes?40 MTV We are watching41 CANON Imaging accross networks42 SAMSUNG Everyone's invited--> DigitALL43 SAP The best-run businesses run SAP44 PEPSI The joy of Pepsi45 XEROX The digital document company46 IKEA Make a fresh start47 PIZZA HUT Great pizzas. Great time.48 HARLEY DAVIDSON The legend rolls on49 APPLE Think different50 GUCCI The hands of Gucci



B R A N D TAG-LINE51 KFC No one does chicken like KFC52 REUTERS For people in the know53 SUN MICROSYSTEM Take it to the nth54 KLEENEX Thank goodness for Kleenex55 PHILIPS Let's make things better56 COLGATE The world leader in oral care57 WRIGLEYS For a cleaner, whiter smile58 AOL So easy to use, no wonder we are the World's No.159 YAHOO Do you yahoo?60 AVON Let's talk61 CHANEL Share the fantasy62 DURACELL The most powerful alkaline battery in the world 63 BOEING One destination. A world of solutions64 TEXAS INSTRUMENTS The world leader in DSP and analog65 KRAFT You know you want it66 MOTOROLA Intelligence everywhere67 LEVI'S Originality. Integrity. Innovation.68 TIME Both sides of the story explored weekly69 ROLEX Perpetual Spirit.70 ADIDAS Long live sport71 HERTZ Suddenly, you're free again72 PANASONIC Just slightly ahead of our time73 TIFFANY America's house of design since 183774 BP Beyond petroleum75 BACARDI Latin spirit in everyone



B R A N D TAG-LINE76 AMAZON.COM A real company in a virtual world77 SHELL Moving at the speed of life78 SMIRNOFF There is vodka. And there's Smirnoff79 MOET&CHANDON L'esprit Moet & Chandon80 BURGER KING It's all about the burgers81 MOBIL Exceed. Why compromise82 HEINEKEN It's all about the beers83 THE WALL STREET JOURNAL Adventure in capitalism84 BARBIE Gotta B.....85 POLO/RALPH LAUREN Active headquarters86 FEDEX This is a job for FedEx87 NIVEA It helps protect your skin88 STARBUCKS Your home from home89 JOHNIE WALKER Keep walking90 JACK DANIELLE Some things never change. Jack Daniel is one of them91 ARMANI Design for the face92 PAMPERS We're right behind you. Every step of the way.93 ABSOLUT Absolut revealed94 GUINNES Good things come to those who wait95 FINANCIAL TIMES No FT, no comments96 HILTON It happens at Hilton97 CARLSBERG Probably the best beer in the world98 SIEMENS Be inspired99 SWATCH Time is what you make of it

100 BENETTON United colors of Benetton

57

GLOBAL BRAND NECESSITATES

A WORLD CLASS ORGANIZATION

58

No. Aspect Basic questions1 Mission & Vision Are there broad lines & targets that effectively guide employees in shaping the firm of the future ?

2 Customer Orientation Is satisfaction of customers' needs an important concern broadly shared within the firm ?

3 Corporate Culture Are there fundamental beliefs & values broadly shared by members of the firm ?

4 Organization & Are the structure & systems of the firm effective in helping management to steer the firm System in the desired direction?

5 Planning & Are external & internal information effectively gathered & processsed to help Intelligence management to steer the firm in the desired direction?

6 Human Resources How effective are the recruitment, development, deployment & mobilization of human resources ?

7 Technical Resources How effective are the acquisition, development, deployment & mobilization of tangible resources ?

8 Innovation How effective are the acquisition, development & implementation of new ideas in all facets of the firm's operation ?

9 Market Strategy How effective are the selection & strategic management of key products and markets ?

10 Marketing Operations How effective is the management of marketing activities ?

11 International How effective is the international management of human resources, technical resources, products & markets?

12 Performance How effective is the firm in obtaining postitive results from its actions?

Source: Jean Claude Jarreche, INSEAD (2002)

THE TWELVE BUSINESS CAPABILITIES

THE PATHS TOWARDS DEVELOPING A WORLD CLASS ORGANIZATION:BUILDING THE REQUIRED CAPABILITIES

59

BASIC CONCEPTS OFSTRATEGY

60

STRATEGY :A Definition

Strategy :• A strategy of an organization ( be it a corporation or a

company or a social organization, etc) forms a comprehensive

master plan, stating how the organization will achieve its

mission and objectives.

• The strategy maximizes competitive advantages and

minimizes competitive disadvantages to improve business

position ( in the market and business results)

61

STRATEGY:The Dimensions

Four dimensions of Strategy:

1. A perspective, that is a view of what an organization, (be it in business

or social one) is to become: a vision and direction.

2. A position in the business world, which reflects decisions on types of products or services to be offered to a particular target

market /customer selected.

3. A plan : on how and means of getting from here and now to there and then

4. A pattern of decisions and actions. As an example, Rolex

always markets very expensive watches: they are applying “high-end strategy”

62

STRATEGY:In Practical Applications

• Strategy evolves over time , as organization’s intentions and

actions collide with and accommodate a changing reality.

As an example, one might start with a perspective about the

environment and the place of the organization within that.

Then he/she concludes that perspective calls for the for a

certain position for the organization. That certain position

can only be achieved through a carefully crafted plan . In

its turn, this plan is to be reflected in a pattern of decisions and

actions over time. (This is called “realized” or “emergent strategy”)

(Adopted from Mintzberg, 1994, The Rise and Fall of Strategic

Planning)

63

COMPETITIVE STRATEGIES:Creating the Future Today!

Source : Hamel & Prahalad, “Competing for the Future” , Harvard Business School Press, Boston, Massachusetts,1994

“There are always two parties : the Party of the Past -> The Establishment and the Party of the Future -> The Movement” (Ralph Waldo Emerson)

THE GOAL

NOT TO PREDICT THE FUTURE

BUT TO IMAGINE A FUTURE MADE POSSIBLE BY

THE CHANGES

IN

• Technology• Life-style• Work-style• Regulation• Global Geopolitics• Etc

Every company is in the process of becoming, either an anachronism, irrelevantto the Future or a Harbinger of the Future

THE FUTUREIS WHAT IS

HAPPENING TODAY !

STRATEGY IS ABOUT SHAPING THE FUTURE !!

“Destiny is not a matter chance. It is a matter of choice. It is not a thing to be waited for; it is a thing to be achieved” (William Jennings Bryan)

64

STRATEGY:Practical Questions for Business Managers

• What have we/you done to improve clients/customers service (today, this week, this month, the last three months, the last six months, the last twelve months) ?

• What have we/you done to improve clients/customers satisfaction (today, this week, this month, the last three months, the last six months, the last twelve months) ?

• What have we/you done to reduce costs (today, this week, this month, the last three months, the last six months, the last twelve months) ?

• What have we/you done to increase productivity and efficiency (today, this week, this month,

the last three months, the last six months, the last twelve months) ?

• What have we/you done to increase revenues from new products and services (today, this week, this month, the last three months, the last six months, the last twelve months) ?

Strategy: to maximize competitive advantages and to minimize competitive disadvantages to improve business position ( in the market and business results)

65

STRATEGIC MANAGEMENT PROCESS:An Overview of the Basic Elements

StrategyContent

EVALUATIONAND CONTROL

StrategicThinking:The StrategyFormulation

Process

StrategicActions:

The StrategyImplementation

Process

C O N T E X T

66

FOCAL POINTS OF DIFFERENT VIEWS ON STRATEGIES

STRATEGY(in general)

CORPORATESTRATEGY

COMPETITIVESTRATEGY

Courses of Actions

Choices &Commitments

Competitors &Competition

RelationshipBetweenENDS andMEANS

• Business• Markets• Products• Services

PORTER• Cost• Differentiation• FocusTREACY & WIERSEMA• Operational Excellence• Customer Intimacy• Product Leadership

67

STRATEGIC ISSUES

MEETSCUSTOMERS’

NEEDS BETTER

AND AT LOWER COST

ASUCCESFULSTRATEGY

WHAT ARE OURCUSTOMERS’

REQUIREMENTS?

REQUIREMENTS

STRUCTURE OFDEMAND

DYNAMICS OFDEMAND

What are the specific requirements of each customer segment ?

How will customer ‘trade’ one feature of the product against another ?

How many different people are involved in the purchase decision?

Do they have different requirements?

Are there different “customer segments” which have different requirements?

What / who are they?

Are there conflicts in serving more than one group of customer segment?

How will the market grow in the future ?

WHAT DO OURCOMPETITORS

OFFER?

REQUIREMENTS

STRUCTURE OFDEMAND

DYNAMICS OFDEMAND

How well do the competitors meet customer needs?

How easy would it be for our company to copy or vice versa?

Which segments will this make the competitors strong in, or potentially strong?

How is the competitors likely to change to meet customers demand in the future?

WHAT ARE THE COMPANY’S

COSTS?

WHAT ARE OURCOMPETITORS’EQUIVALENT?

COSTS

Source : Braxton Associates, 1998

STRUCTURE

DYNAMICS

DRIVERS

STRUCTURE

DYNAMICS

DRIVERS

What different elements of costs are involved in meeting different customers needs?

What causes costs to be higher or lower ?

How costs will change in the future ?

For each elements of costs, what would be competitors costs?

What customers segments will this make competitors most competitive in ?

What will causes the competitors’ costs to be higher or lower ?

How will the competitors’ costs will change in the future?

68

References

• Capon, Noel and James M. Hulbert, “Marketing Management in the 21st Century”, Prentice Hall, 2001• Davidson, Hugh, “Even More Offensive Marketing”, Penguin Books, 1997• Hiam, Alexander and Charles D. Schewe, “The Portable MBA in Marketing”, John Wiley & Sons, Inc., 1992• Jabbar, Rahim, ““Approaches towards Segmentation, Targeting & Positioning”, 2002, (unpublished)• Business Week, 2001,” The 100 Most Valuable Global Brands”

Branding as a Marketing Strategy Brief

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