This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
prudence. Its evaluations must be shown to bevalid, coherent and reproduceable. This iswhy, paradoxically, only the brands that havebeen bought individually, or that wereincluded in the price paid for a company, canbe posted in the balance sheet of the acquiringcompany. The overall price paid gives anupper limit to their value. So far, all over theworld, the principle of prudence has lednational and international accounting normsand standards to forbid the posting in thebalance sheet of internally grown brands. It isof course possible to propose brand valua-tions, but as long as the brands have not beenbought and sold, there is too much doubtabout the validity of these estimates. Brandsacquire value through the market.
Accounting for brands: the debate
The debate on the inclusion of all of thebrands, whether they be purchased orcreated, raises basic questions about the veryessence of accounting. Why do balancesheets and company accounts exist? Is it togive an estimation of the true financial value
of the company (which of course is verysubjective) or, following the accountingprudence principle, to include only objectivedata and to assess only past and recordedtransactions? Until now the second idea hasbeen chosen in all countries: therefore onlytransactions involving external brands arerecorded. If the internal brands were to benoted, the principle of reality would berespected at the expense of reliability and ofthe consistency of accounting. In fact, whatwould we think of a balance sheet which wasbased on non-uniform and sometimessubjective methods of evaluation? Theinclusion of an acquired brand does notviolate the principle of bookkeeping athistorical costs, which is a fundamentalaccounting principle. How then can internalbrands be valued? As we will see later on, thevaluation methods, which are based onhistorical costs or replacement costs, are notgood enough. The best methods are thosebased on projections of future income, whichare highly subjective. A certain amount ofuncertainty and heterogeneity, which areagainst the rules of caution, would be createdif these were included in the balance sheet.
Price
Without astrong brand
Volumepremium
Pricepremium
Volume
With astrong brand
Figure 18.1 What is ‘brand equity’?
PRICES ARE IMPACTED BY DIFFERENT FACTORS
OPTIONS
Be Honest, Thank you Customers, Explain Your Costs, Add Features, Give a Lower-Priced Option, Over-Delivered First, Add More Value, Raide Prices for Reasons Other Than Profitability, Explain But Don’t Apologise, Inform Your Customers
“New exciting ideas and perspectives on brand building are offered that have been absent from our literature.”Philip Kotler, S C Johnson & Sons Distinguished Professor of International Marketing, Northwestern University,
Kellogg School of Management, USA
“Kapferer continues to be on the leading edge.”Earl N Powell, President, Design Management Institute, Boston, USA
“Managing a brand without reading this book is like driving a car without your license.” Haesun Lee, Senior Vice President of Marketing,AMOREPACIFIC Co, Korea
“The best book on brands!”Design Magazine
“One of the definitive resources on branding for marketing professionals worldwide.”The Economic Times, India
“One of the best books on brand management. Kapferer is thought-provoking and always able to create new insights on various brand-related topics.”
Rik Riezebos, CEO Brand Capital and director of the European Institute for Brand Management
Adopted by leading international business schools, MBA programmes and marketing practitioners alike, The New StrategicBrand Management is simply the reference source for senior strategists, positioning professionals and postgraduate students. Over the years it has not only established a reputation as one of the leading works on brand strategy but hasalso become synonymous with the topic itself.
This new edition builds on its impressive reputation and keeps the book at the forefront of strategic brand thinking.Revealing and explaining the latest models used by companies worldwide, author Jean-Noël Kapferer covers all the leading issues faced by brand strategists today, supported by an array of international case studies. With both gravitasand intelligent insight, this book reveals new thinking on crucial topics including:
Moving beyond marketing, The New Strategic Brand Management addresses the bigger picture, integrating other components such as business models, HR and finance into brand building. It analyses the specifics of brands in B2B, services, distribution, the internet and the luxury sector. It extends the brand concept to celebrities, universities, townsand nations.
Jean-Noël Kapferer is one of the very few worldwide experts on brands. His book stands out fromothers with its unique insights, its style of exhaustive analysis and its original perspectives, stemming fromhis strategic vision, and his international background and experience. A professor of marketing strategy atHEC Paris, he holds a PhD from Northwestern University (USA) and is an active consultant to manyEuropean, US and Asian corporations. He also gives executive seminars in the US, China, Japan, Korea and
India. He is the author of six books on branding, advertising and communication, including Reinventing the Brand, also published by Kogan Page. You can contact him at www.kapferer.com.
• growth in saturated markets;• decommoditisation;• innovation in emerging markets;• brand rejuvenation and turn around;• managing brand consistency and diversity;
• positioning private labels and store brands;• globalisation and market adaptation;• co-branding strategies;• internal branding and corporate branding; • financial evaluation of brands.
copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com
Pains
Gains
CustomerJob(s)
copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com
The Value Proposition Canvas
Gain Creators
Pain Relievers
Products& Services
Value (Proposition) Map:
appearance is important but it is not all.Nevertheless, the first step in developing abrand is to define its physical aspect: Whatis it concretely? What does it do? Whatdoes it look like? The physical facet alsocomprises the brand’s prototype: theflagship product that is representative ofthe brand’s qualities.
That is why the small round bottle is soimportant each time Orangina islaunched in a new country. The bottleused today is the same as it has alwaysbeen. From the beginning, it has served toposition Orangina, thanks to its uniqueshape and to the orange pulp that we canactually see. Only later was it marketed instandard family-size PET bottles and incans. In this respect, it is also quite signif-icant that there used to be a picture of thefamous Coca-Cola bottle on all Coke cans.It is true that modern packaging tends tostandardise brands, making them allclones of one another. Thus, in using theimage of its traditional bottle, Coca-Colaaims to remind us of its roots.
There are several delicate issuesregarding Coke’s physical facet. Forexample, is the dark colour part of itsidentity? It is certainly a key contributorto the mystery of the brand. If it belongsto the brand’s kernel, key identity traits,then there could never be any such thingas colourless Crystal Coke, even thoughthere is such a thing as Crystal Pepsi.Likewise, would grapefruit Orangina inthe classic round bottle be possible?
Many brands have problems with theirphysical facet because their functionaladded value is weak. Even an image-basedbrand must deliver material benefits.Brands are two-legged value-addingsystems.
2. A brand has a personality. By communi-cating, it gradually builds up character.The way in which it speaks of its productsor services shows what kind of person itwould be if it were human.
‘Brand personality’ has been the mainfocus of brand advertising since 1970.
STEP 3 - SCENARIOS FOUNDATIONSWHAT SHOULD BE CHANGED IN THE FOUNDATIONS?
BRAND VP
The Value Proposition Canvas
Customer (Segment) Profile:
copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com
Pains
Gains
CustomerJob(s)
copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com
The Value Proposition Canvas
Gain Creators
Pain Relievers
Products& Services
Value (Proposition) Map:
appearance is important but it is not all.Nevertheless, the first step in developing abrand is to define its physical aspect: Whatis it concretely? What does it do? Whatdoes it look like? The physical facet alsocomprises the brand’s prototype: theflagship product that is representative ofthe brand’s qualities.
That is why the small round bottle is soimportant each time Orangina islaunched in a new country. The bottleused today is the same as it has alwaysbeen. From the beginning, it has served toposition Orangina, thanks to its uniqueshape and to the orange pulp that we canactually see. Only later was it marketed instandard family-size PET bottles and incans. In this respect, it is also quite signif-icant that there used to be a picture of thefamous Coca-Cola bottle on all Coke cans.It is true that modern packaging tends tostandardise brands, making them allclones of one another. Thus, in using theimage of its traditional bottle, Coca-Colaaims to remind us of its roots.
There are several delicate issuesregarding Coke’s physical facet. Forexample, is the dark colour part of itsidentity? It is certainly a key contributorto the mystery of the brand. If it belongsto the brand’s kernel, key identity traits,then there could never be any such thingas colourless Crystal Coke, even thoughthere is such a thing as Crystal Pepsi.Likewise, would grapefruit Orangina inthe classic round bottle be possible?
Many brands have problems with theirphysical facet because their functionaladded value is weak. Even an image-basedbrand must deliver material benefits.Brands are two-legged value-addingsystems.
2. A brand has a personality. By communi-cating, it gradually builds up character.The way in which it speaks of its productsor services shows what kind of person itwould be if it were human.
‘Brand personality’ has been the mainfocus of brand advertising since 1970.
BRAND IDENTITY AND POSIT IONING 183
PICTURE OF SENDER
PICTURE OF RECIPIENT
Relationship Culture
Reflection
Physique Personality
Self-image
EXTE
RNAL
ISAT
ION
INTE
RNAL
ISAT
ION
Figure 7.4 Brand identity prism
1. OBSERVATION OF PERSONAS2. FIT BETWEEN PERSONAS AND
FOUNDATIONS3. CONSISTENCY BETWEEN ELEMENTS4. SIMPLICITY (Ockham’s razor)5. MAXIMIZATION OF FINANCIAL
STEP 4 - SCENARIOS AMPLIFICATIONSWHAT SHOULD BE CHANGED IN THE INTERACTIONS?
McKinsey Quarterly 2009 Number 32
An interactive exhibit explores the new consumer decision journey model and describes how marketers can use it to communicate with consumers at key stages in the decision-making process. Find the exhibit on mckinseyquarterly.com.
and more complicated than the funnel suggests. We call this approach the consumer decision journey. Our thinking is applicable to any geographic market that has different kinds of media, Internet access, and wide product choice, including big cities in emerging markets such as China and India.
We developed this approach by examining the purchase decisions of almost 20,000 consumers across five industries and three continents. Our research showed that the proliferation of media and products requires marketers to find new ways to get their brands included in the initial-consideration set that consumers develop as they begin their decision journey. We also found that because of the shift away from one-way communication—from marketers to consumers—toward a two-way conversation, marketers need a more systematic way to satisfy customer demands and manage word-of-mouth. In addition, the research identified two different types of customer loyalty, challenging companies to reinvigorate their loyalty programs and the way they manage the customer experience.
Finally, the research reinforced our belief in the importance not only of aligning all elements of marketing—strategy, spending, channel man- agement, and message—with the journey that con- sumers undertake when they make purchasing decisions but also of integrating those elements across the organization. When marketers under- stand this journey and direct their spending and messaging to the moments of maximum influence, they stand a much greater chance of reaching consumers in the right place at the right time with the right message.
Q3 2009CDJExhibit 1 of 4Glance: In the traditional funnel metaphor, consumers start with a set of potential brands and methodically reduce that number to make a purchase.Exhibit title: The traditional funnel