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Jack Buckner
Strategic Brand ManagementStrategic Brand Management
Exeter MBA Exeter MBA Day 5Day 5
Implementation and conclusionImplementation and conclusion
Jack Buckner
Brand
Product / Service
Consumers
Strategic Brand Management
Customers
Consumer Focussed / Customer Aware
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Jack Buckner
Brand
Product / Service
Consumers
Strategic Brand Management
Customers
Retailers / channel
Corporate structure
Internal partners
Jack Buckner
Brand Management and customer relationshipsBrand Management and
customer relationships
RetailersRetailers
Head / regional office Head / regional office corporate
structurecorporate structure
Internal departments Internal departments sales, finance and
sales, finance and
logisticslogistics
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Jack Buckner
Brand
Product / Service
Consumers
Strategic Brand Management
Customers
Retailers / channel
Corporate structure
Internal partners
Jack Buckner
Retailers and channel managementRetailers and channel
management
For most consumer brands For most consumer brands retailers and
retailers and
channel management represent a channel management represent
a
fundamental challengefundamental challenge
Retailers are a barrier to the consumerRetailers are a barrier
to the consumer
Phil KnightPhil Knight
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Jack Buckner
Retail trendsRetail trends
Growth of key account managementGrowth of key account
management
European and global retailersEuropean and global retailers
Decline of the independent retailerDecline of the independent
retailer
Survival of the specialistSurvival of the specialist
Retail consolidation and range / brand Retail consolidation and
range / brand rationalisationrationalisation
Growth of private labelGrowth of private label
Internet for certain product categoriesInternet for certain
product categories
Jack Buckner
Channel alternativesChannel alternatives
Cost effective Cost effective
managementmanagementProduct / brand Product / brand
innovationinnovationStrong brand messageStrong brand
messageInternetInternet
Retail managementRetail managementLimited editionLimited
edition
Flagship for brandFlagship for brand
Strong brand messageStrong brand messageOwn retailOwn retail
Brand controlled by Brand controlled by
retailerretailerBusiness opportunityBusiness opportunityMass
merchandisingMass merchandisingCategory Category
BreakerBreaker
OwnOwn product ranges product ranges
and communicationand communication
Private labelsPrivate labels
Sales turnover ScaleSales turnover ScaleMass consumer baseMass
consumer baseKey AccountsKey Accounts
Less control of brand Less control of brand
message.message.
Developing their own Developing their own
brand identitybrand identity
Good qualityGood qualityBroad consumer profile, Broad consumer
profile,
competition with major competition with major
brandsbrands
MultipleMultiple
Distribution Distribution Brand messageBrand messageQuality
distribution Strong Quality distribution Strong
brandsbrandsIndependentIndependent
Stock Distribution Stock Distribution
Trade termsTrade terms
Credibility & Credibility &
Influential consumersInfluential consumers
Often premium brands, Often premium brands,
wide choice, high wide choice, high
knowledgeknowledge
SpecialistSpecialist
ConsConsPros Pros
CharacteristicsCharacteristicsChannelChannel
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Jack Buckner
The product mix conundrumThe product mix conundrum
Easier / CheaperEasier / CheaperKey AccountKey AccountMain range
Main range
low pricelow price
MultipleMultipleMain range Main range
mid pricemid price
IndependentIndependentQuality productsQuality products
Harder / Harder /
expensiveexpensiveSpecialistSpecialistPremium, niche Premium,
niche
productsproducts
SOURCING SOURCING
LOGISTICSLOGISTICSRETAIL RETAIL
CHANNELCHANNELPROUCT PROUCT
RANGERANGE
Jack Buckner
adidas and Footlockeradidas and Footlocker
Footlocker (Footlocker (VenatorVenator) group ) group biggest
sports retailer in the biggest sports retailer in the
worldworld
adidas business declined by 50% adidas business declined by 50%
-- 1999 1999 20012001
Reebok Reebok BlacktopBlacktop programme exclusivityprogramme
exclusivity
Nike Nike Tuned AirTuned Air technology exclusivitytechnology
exclusivity
Adidas Adidas Superstar Superstar volume salesvolume sales
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Jack Buckner
The adidas SL rangeThe adidas SL range
SL SL sports lightsports light
Exclusive to Exclusive to Venator Venator group (Footlocker and
Champs)group (Footlocker and Champs)
Joint advertising (funded by adidas)Joint advertising (funded by
adidas)
Objective Objective raise profile & sales of adidas
brandraise profile & sales of adidas brand
Use SL range as a silver bulletUse SL range as a silver
bullet
Jack Buckner
The SL rangeThe SL range
SubSub--brandbrand
Difficulty in establishing main brandDifficulty in establishing
main brand
Addiction to exclusivesAddiction to exclusives
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Jack Buckner
Brands and retailersBrands and retailers
A battle of strength, priorities and brandsA battle of strength,
priorities and brands
Puma Puma global distribution strategy (1 global distribution
strategy (1 6)6)
Retail partnerships and alliancesRetail partnerships and
alliances
Key accounts will increasingly demand Key accounts will
increasingly demand
exclusive ranges / brandsexclusive ranges / brands
Balancing brand objectives with market Balancing brand
objectives with market
realitiesrealities
Jack Buckner
Brands versus Private LabelsBrands versus Private Labels
The private label threatThe private label threat
Improved qualityImproved quality
Development of premium private label brandsDevelopment of
premium private label brands
European supermarkets successEuropean supermarkets success
Emergence of new channelsEmergence of new channels
Creation of new categoriesCreation of new categories
Brand StrengthBrand Strength
Purchase process favours brandsPurchase process favours
brands
Brands have a solid foundationBrands have a solid foundation
Brand strength parallels the economyBrand strength parallels the
economy
National brands have value for retailersNational brands have
value for retailers
Excessive emphasis on private labels dilutes strengthExcessive
emphasis on private labels dilutes strength
Quelch & Harding: HBR Jan/Feb 1996
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Jack Buckner
Brands and Private labelsBrands and Private labels
Quelch Quelch & Harding argue the true cost of private &
Harding argue the true cost of private
labels is often underlabels is often
under--estimatedestimated
Use category profit pools as a performance measure Use category
profit pools as a performance measure
Take private labels seriouslyTake private labels seriously
Since 1996Since 1996
Growth of retailers as brandsGrowth of retailers as brands
Explosion of subExplosion of sub--brandsbrands
Increase discounting of national brands (transparency)Increase
discounting of national brands (transparency)
Jack Buckner
Brand
Product / Service
Consumers
Strategic Brand Management
Customers
Retailers / channel
Corporate structure
Internal partners
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Jack Buckner
Global organizationGlobal organization
Weak global Weak global
brandbrandStrong country Strong country
managementmanagementDeDe--centralisedcentralised
Confusion and Confusion and
duplication of duplication of
functions/ functions/
resourcesresources
Brand and Brand and
local local
management management
balancebalance
MixMix
Weak country Weak country
managementmanagementStrong brand Strong brand
controlcontrolCentralisedCentralised
DisadvantagesDisadvantagesAdvantagesAdvantagesSTRUCTURESTRUCTURE
Jack Buckner
Branding functionsBranding functions
Brand direction Brand direction logos, core branding
decisionslogos, core branding decisions
R & DR & D
Product ranges Product ranges range management, core rangerange
management, core range
Communication Communication advertisingadvertising
Own retail strategyOwn retail strategy
Communication Communication prpr
Retail Retail instoreinstore, pos, pos
SponsorshipSponsorship
Range localisation, advertising and distribution Range
localisation, advertising and distribution traditionally the most
fought over functionstraditionally the most fought over
functions
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Jack Buckner
P & GP & G
$43.38 billion sales$43.38 billion sales
$5.18 billion net earnings$5.18 billion net earnings
300 brands 300 brands
5 billion consumers5 billion consumers
160 countries160 countries
Jack Buckner
Some P & G brandsSome P & G brands
Ariel, Tide, Flash, Bold, Pampers, Ariel, Tide, Flash, Bold,
Pampers, TampaxTampax, ,
Always, Pantene, Olay, Head & Shoulders, Always, Pantene,
Olay, Head & Shoulders,
Max factor, Camay, Ivory, Max factor, Camay, Ivory, Clariol
Clariol Herbal Herbal
Essences, Old Spice, Cover Girl, Vicks, Essences, Old Spice,
Cover Girl, Vicks,
Crest, Folgers, Pringles, Sunny Delight, Crest, Folgers,
Pringles, Sunny Delight,
TorengosTorengos
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Jack Buckner
P & G organizationP & G organization
Brand Management in 1930Brand Management in 1930ss
Brand manager responsible for all aspects of assigned Brand
manager responsible for all aspects of assigned brandbrand
Competing brands in the 1950Competing brands in the 1950s
onwardss onwards
Category management in the 1980Category management in the
1980ss
Improved coImproved co--ordination and rationalisationordination
and rationalisation
IIm running a company called m running a company called
DryelDryel..
Global Strategic Planning Groups in the 1990Global Strategic
Planning Groups in the 1990ss
Global and local branding policiesGlobal and local branding
policies
GlocalGlocal strategies strategies allow strategy to emerge from
allow strategy to emerge from successful local rootssuccessful
local roots
Jack Buckner
P & G 2005P & G 2005
Cohort managementCohort management
Bundling of brands around consumersBundling of brands around
consumers
Improve understanding of consumer Improve understanding of
consumer
relationshipsrelationships
Understand consumer value and identify Understand consumer value
and identify
emerging consumer groupsemerging consumer groups
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Jack Buckner
Interface with customers, local Interface with customers,
local
understandingunderstanding
Create strong brand equitiesCreate strong brand equitiesGeneral
RoleGeneral Role
Act LocallyAct LocallyThink GloballyThink GloballyPhilosophy
Philosophy
North AmericaNorth America
Greater ChinaGreater China
Western EuropeWestern Europeetcetc
Baby, feminineBaby, feminine
Beauty CareBeauty Care
Fabric & Home CareFabric & Home Care..etc..etc
ComprisesComprises
Market Development Market Development
OrganizationsOrganizations
Global Business UnitsGlobal Business UnitsPillarsPillars
Ensuring cutting edge, fully Ensuring cutting edge, fully
integrated, functional capabilityintegrated, functional
capability
Single quality , costSingle quality , cost--efficient,
efficient,
quick servicesquick services
General RoleGeneral Role
Be the smartest / bestBe the smartest / bestMinimize
administration costsMinimize administration
costsPhilosophyPhilosophy
Customer BDCustomer BD
Finance & AccountingFinance & Accounting
IT, HR, Legal, MarketingIT, HR, Legal, Marketing
GBS AmericasGBS Americas
GBS AsiaGBS Asia
GBS Europe etcGBS Europe etc
ComprisesComprises
Corporate FunctionsCorporate FunctionsGlobal Business
ServicesGlobal Business ServicesPillarsPillars
Global Business Units and Market Development Organizations
Global Business Services and Corporate Functions
Jack Buckner
The Matrix OrganizationThe Matrix Organization
Joint responsibilitiesJoint responsibilities
Risk of being slowRisk of being slow
Requires coRequires co--operationoperation
Can lead to confused Can lead to confused
loyaltiesloyalties
Allows flexibilityAllows flexibility
Teamwork can emergeTeamwork can emerge
Personal growthPersonal growth
Successful with highSuccessful with high--
performance cultureperformance culture
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Jack Buckner
Corporate Structure DebatesCorporate Structure Debates
How do you expand but keep close to the How do you expand but
keep close to the consumer?consumer?
How do you define emerging consumer How do you define emerging
consumer groups?groups?
What are the boundaries to consumer What are the boundaries to
consumer groups?groups?
How do you balance responsibility with How do you balance
responsibility with motivation?motivation?
How can a matrix respond quickly?How can a matrix respond
quickly?
Jack Buckner
Brand
Product / Service
Consumers
Strategic Brand Management
Customers
Retailers / channel
Corporate structure
Internal partners
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Jack Buckner
Internal Brand ManagementInternal Brand Management
Brand management linked to marketingBrand management linked to
marketing
Global brand management and local Global brand management and
local marketing?marketing?
Relationship between brand management Relationship between brand
management and financeand finance
Shared objective settingShared objective setting
Difficulty of assessing extensionsDifficulty of assessing
extensions
Creative aspects of branding can conflict with Creative aspects
of branding can conflict with financefinance
Jack Buckner
Organizational Structure and DebatesOrganizational Structure and
Debates
Executive Team
Brand /Marketing
Logistics
Finance
Sales
Legal
HR
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Jack Buckner
LetLets extend our brand ups extend our brand
up--market?market?
Executive Team
Brand /Marketing
Logistics
Finance
Sales
Well need to
invest in the
brand Better margins
for extra
marketing?
Reduced
capacity? Well lose
customers
Jack Buckner
LetLets extend our brand downs extend our brand
down--market?market?
Executive Team
Brand /Marketing
Logistics
Finance
Sales
Become more
competitiveReduced
margins?
Too much
capacity?Great! increased
sales
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Jack Buckner
New ideas and conclusionNew ideas and conclusion
The Tipping PointThe Tipping Point
The Experience EconomyThe Experience Economy
Jack Buckner
The Tipping PointThe Tipping Point
How little things can make a differenceHow little things can
make a difference
Unlock the viral potential of a product, Unlock the viral
potential of a product,
brand or service to create an epidemic of brand or service to
create an epidemic of
demanddemand
Malcolm Gladwell: The Tipping Point, Abacus
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Jack Buckner
The Tipping PointThe Tipping Point
The Law of the few The Law of the few -- key socially key
socially
infectious early adopters determine the infectious early
adopters determine the
spread of a product, service or brandspread of a product,
service or brand
The Stickiness factor The Stickiness factor the intrinsic the
intrinsic
contagiousness of a product, service or contagiousness of a
product, service or
brand influences adoptionbrand influences adoption
The power of context The power of context the context must
fitthe context must fit
Jack Buckner
The Tipping Point in applicationThe Tipping Point in
application
Post It notesPost It notes
Microsoft Microsoft Windows launchWindows launch
PfizerPfizer
P & G P & G connector panelconnector panel
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Jack Buckner
Brands and the Tipping PointBrands and the Tipping Point
Role of viral branding / marketingRole of viral branding /
marketing
Accelerates decline of traditional brand Accelerates decline of
traditional brand
building activitiesbuilding activities
But longevityBut longevity..
Jack Buckner
The Experience EconomyThe Experience Economy
A new economic era A new economic era staging eventsstaging
events
You are a performer. Your work is You are a performer. Your work
is
theatre. Now act accordingly.theatre. Now act accordingly.
What productions do you want to stage?What productions do you
want to stage?
Disney, Starbucks, Nike, ESPN, Weight Disney, Starbucks, Nike,
ESPN, Weight
Watchers, Jeep and lots of filmsWatchers, Jeep and lots of
films
J. Pine & J. Gilmore: The Experience Economy. HBS press
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Jack Buckner
Experience EconomyExperience Economy
Extract Commodities
Make Goods
Deliver Services
Stage Experiences
Differentiated
Undifferentiated
Competitive
Position
Market Premium
Irrelevant to
Relevant to
Pricing
Needs of
Customers
Jack Buckner
Experience EconomyExperience Economy
Extract Commodities
Make Goods
Deliver Services
Stage Experiences
Differentiated
Undifferentiated
Competitive
Position
Market Premium
Irrelevant to
Relevant to
Pricing
Needs of
Customers
Guide transformationsCUSTOMIZATION
COMMODITIZATION
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Jack Buckner
New Branding IdeasNew Branding Ideas
Expand the techniques available to build Expand the techniques
available to build
brands and market productsbrands and market products
Accelerate further the decline of traditional Accelerate further
the decline of traditional
marketing and brand buildingmarketing and brand building
Make brand equity evaluation even more Make brand equity
evaluation even more
difficultdifficult
But do they render more traditional But do they render more
traditional
approaches obsolete?approaches obsolete?
Jack Buckner
Strategic Brand ManagementStrategic Brand Management
The basic concepts are the same:The basic concepts are the
same:
Focus on the consumerFocus on the consumer
Understand the brandUnderstand the brand
Awareness of the customerAwareness of the customer
Build brand equityBuild brand equity
Brand image and brand identityBrand image and brand identity
Market positionMarket position
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Jack Buckner
Brand
Product / Service
Consumers
Strategic Brand Management
Customers
Consumer Focussed / Customer Aware
Jack Buckner
Planning Brand StrategyPlanning Brand Strategy
BRAND IMAGE
How the brand is now
perceived
BRAND IDENTITY
How strategists want the
brand to be perceived
Consumer Perceptions Company IntentionsMarketing
Communication
Process
Understand Image Develop identityMarket position
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Jack Buckner
Brand ManagementBrand Management
BRAND IMAGE
How the brand is
now perceived
BRAND IDENTITY
How strategists want the
brand to be perceived
Consumer PerceptionsCompany Intentions
Product
Marketing
Communication
Process
Understand Image
Develop identity
Market position
Jack Buckner
The Brand as a network?The Brand as a network?
Consumer Image Brand Strategy
Market Position
Brand Network
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Jack Buckner
What is ChangingWhat is Changing
Speed Speed
Rapid growth and decline of brandsRapid growth and decline of
brands
The sensitivity of the environment (driven by The sensitivity of
the environment (driven by
technology)technology)
The range of nonThe range of non--traditional techniques
available traditional techniques available
(CRM, viral marketing, experience building)(CRM, viral
marketing, experience building)
The expectation for resultsThe expectation for results
Consumer possibilitiesConsumer possibilities
Customer pressuresCustomer pressures
Jack Buckner
Strategic Brand ManagementStrategic Brand Management
Stick to a small number of strong principlesStick to a small
number of strong principles
Study the environment Study the environment especially the
especially the
consumer and the customerconsumer and the customer
Be courageousBe courageous
And Good luckAnd Good luck..