Contents

Using this guide 5. MANAGING AND

Introduction
Checklist
DEVELOPING BRANDS
Case studies
“Surely every brand has to die sometime!”

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eGUIDE 1 Contents
Defining brands > Using this guide
eGUIDE 2
> Introduction
Types of brands
eGUIDE 3 > What is brand management?
How brands work > Brand management or brand strategy –
eGUIDE 4 what comes first?
Brand strategy
> Brand management – top-down or
eGUIDE 5 bottom-up approach?
Managing and
developing brands > The brand plan
eGUIDE 6 > Some brand management scenarios
Brand portfolio and
architecture > Checklist
eGUIDE 7 > Case studies
Measuring brands and
their performance

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placed in the same single
folder on your hard disk.

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5. MANAGING AND DEVELOPING BRANDS
Using this guide
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>To Branding website >Further details

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Introduction

“ Surely every brand has to die

sometime!
”
If left to their own devices, most brands
inevitably find themselves in a state of decline
as they lose relevance or competitors steal
market share. Imagine if the Levi's brand had
been left as it started and Levi's were still
marketed as hard wearing trousers for miners
– would the brand still be as successful as it is
today?

There is no defined life But brands don't have to die. Unlike products,
cycle for a brand and there is no defined life cycle for a brand and
they can, in theory, live they can, in theory, live forever. Brands are
forever. precious – they are often a company's most
valuable asset – and by carefully controlling
and tweaking them, in line with the brand
strategy, they can be protected from decline
and nurtured into growth. That is the ultimate
purpose of brand management and
development.

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Brand management What is brand management?
stands at the junction of
company and customer > Brand management is a process that takes
control over everything the brand does and
and must integrate the says, managing the way in which it is
totally different perceived by others. This involves identifying
perspectives of the two clearly what the brand stands for, and how
worlds. to position it so that it appears different and
better than competing brands. It requires
constant tracking of the brand and its
competitors, the integration of all
communications, and the management of
each contact point a consumer may have
with the brand. The overall aim of this
process is to increase the value of the brand
over time. [Temporal, 2002]
> Brand management stands at the junction of
company and customer and must integrate
the totally different perspectives of the two
worlds. Balances have to be struck between
the external market and internal capabilities
of the company, between the company’s
inputs into the products and the influences
on consumer perception, and between short-
term satisfaction for various stakeholders
and the long-term growth of the brand.
[Arnold, 1992]

> Products might be mortal and governed by a

lifecycle, but successful brands can escape
the effects of time. That only happens with
constant investment and innovation to keep
the brand relevant, and the delivery of brand
consistency over time. Continuity is essential
to the brand’s formation and longevity.
[Kapferer, 1992]

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Brand management or brand which the brand promise is delivered to

strategy – what comes first?
eGuide 4: Brand strategy
> Every aspect of brand management should
be driven by the overall brand strategy.
Other-wise it is easy to end up with confused
images and perceptions of the brand.
Strategy gives focus and direction to brand
management and provides the platform that
enables brand managers to gain consistency
in all their brand-related activities.
[Temporal, 2002]
customers in a more holistic way.
[CIM/Maritz, 2002]
The new model of brand management
represents this shift, where consumer insight
drives the overall vision and mission of a
brand and this in turn translates to business
strategy and all related activities (see Figure
5.1).

> Traditionally, business objectives and

corporate vision were developed in the
boardroom, with little insight into consumer
wants and needs, and branding was just a
support activity responsible for advertising
The traditional and promotion. The traditional organisational
organisational model model, which has a department as custodian
simply does not fit with of the brand and a different department as
custodian of the people, simply does not fit
world-class branding with world-class branding today. The most
today. progressive companies increasingly work in a
networked or cross-functional way. This
enables the company to look at the way in

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Figure 5.1: Brand link to corporate strategy in

Brand management – top-down or
the 21st century
bottom-up approach?
Winning teams use ‘the brand’ as an
organisational blueprint for the growth that is
BRAND VISION AND MISSION
led from the very top of the company. The full
potential of branding to drive growth is only
realised when it is used to engage and align
BUSINESS STRATEGY the resources of the company in delivering
value for consumers and shareholders alike. To
truly lead the business, brand strategy needs
to influence all day-to-day activities, whether a
CUSTOMER RELATIONSHIP STRATEGY high profile advertising campaign or the ways
in which helpline teams answer the phone.
Top-level management Top-level management support is obviously
support is obviously essential if a brand-led business approach is to
MARKETING
essential if a brand-led have any chance of success. Managers need to
view key business decisions against financial
business approach is to Source: Temporal (2002)
criteria, but also against the brand promise.
have any chance of [Taylor, 2003]
success.
“The successful European companies we’ve
studied share one critical characteristic –
senior managers drive the brand... and as a
result integrate brand building into the overall
concept. In contrast, many US companies
delegate the development of the brand to
someone who lacks the clout and incentives to
think strategically. Or they pass the task to

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their agency. Relying upon their agency leads enabling the brand to have a clear attitude.
to two problems. First, in most cases it creates [de Chernatony, L., 2001]
a dissonance between senior managers and
their key asset, the brand, the driver of future
growth opportunities. That distance can make
the co-ordination of efforts difficult, a situation
that can result in consumer confusion, loss of
synergy and ultimately performance that falls
short of potential.” [Aaker, 1994]

Staff look to strong leaders for guidance and

Powerful brands are powerful brands are characterised by
characterised by enthusiastic leaders who have a passionate
enthusiastic leaders who belief in a few values. By not just talking about
these values, but rather living them,
have a passionate belief
employees appreciate how genuine these
in a few values. values are and are more likely to be
committed to delivering them. Placing more
emphasis on internal brand management
through aligning staff values with brand values
minimises the often-cited problem of variable
quality between employees. It facilitates
unified behaviour and minimises surprises as
customers encounter variants on the brand
promise from different employees. A further
advantage of having a focus on brand
management and looking more inside the
organisation is that it gives rise to a corporate
persona with a deeply felt set of values

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5. MANAGING AND DEVELOPING BRANDS
[Brand positioning] The brand plan
inspires and guides the
“The most effective way to determine and
team, giving a clear
communicate the value of your brands to
picture of both the ‘job’ others is to create a brand plan that includes
the brand needs to do objectives, strategies, tactics and
and the ‘human side’ to measurements.” [LePla and Parker, 2002]
be reflected in
tone and feel. Defining the brand and its market
position
eGuide 3: How Brands work: Brand positioning,
image and identity
“Positioning is a process of ensuring that a
brand can fight through the noise in the
market and enables the brand to occupy a
distinct, meaningful and valued place in
the target customers’ minds.” [de Chernatony,
L., 2001]
Brand positioning plays a vital role in keeping
a brand on track towards its destination. It
pinpoints what makes the brand motivating,
different and true for target customers. In
doing so it should inspire and guide the team
to help them develop a competitive and
coherent brand. When positioning is clearly
defined, it can be a central tool for helping
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boost return on brand investment. It inspires
and guides the team, giving a clear picture of
both the ‘job’ the brand needs to do and the
‘human side’ to be reflected in tone and feel.
The choice of tool for defining a brand’s
position is of little importance. What is
important is that within a company everyone
uses the same tool definition and format.
Speaking the same language is crucial to
facilitate effective communication. [Taylor,
2002]
The different elements of positioning (essence,
values, personality, promise, benefits, brand
truths, consumer insight, market definition,
target consumer) should come together as a
coherent whole. In the case of most strong
brands, positioning is underpinned by brand
truths, providing real substance and content
that can be the starting point for a compelling
and unique story. [Taylor, 2002]
Case study: Barr’s Irn-Bru
When managing a brand, the external or
internal circumstances may call for some
changes in the execution of brand strategy,
brand refreshment or rejuvenation, but the
values underpinning positioning should remain
constant. [Taylor, 2002]
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Figure 5.2 Example positioning tool

(pick your own shape)
4. Rallying calls

Essence
Shorthand distillation

3. Human side of the brand

Brand Values
truths of the brand’s
Fundamental,

2. Job of the brand

Features, attributes reason to guiding principles
and properties that exist
and beliefs
help underpin the promise

Benefits Personality
The key motivations Human characteristics
for buying the Brand guiding tone, feel
brand promise and style
Summary of what
the brand offers and why
it is better than alternatives
Core insight
Human truth that opens door to opp-
ortunity for your brand to improve everyday life
Consumer target Market definition
Positioning: person the The product and service
brand must excite and areas in which the brand
involve. Consumption: wants to operate. Who will
broader group of buyers lose if we win?

Source: Taylor, D. (2002) The Brand Gym. 1. Insight foundation

London, John Wiley & Sons

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Figure 5.3a: Positioning tips and tricks

Inspires and guides Tips and tricks Bad examples Good examples
Market Full view of real Who wins when we lose? Videotapes Rentable home
definition competition Use benefits not just Blockbuster entertainment
Ideas for stretch product terms Blockbuster
Insight foundation

Positioning Empathy with the core Capture attitudes, AB women aged 25-45 Food enthusiasts who
target consumer, understand values, colour Knorr enjoy good food but
their life are pressed for time Knorr

Core insight Open the door to an
opportunity to improve
everyday life
Describe a human truth
and how this opens a
door for the brand
Add colour and emotion
Parents worry about People who are concerned
nappy rash Pampers about their baby having a
wet bottom and getting
nappy rash as this makes
them worry about not being
a perfect parent Pampers

Brand truths Development of product Be specific and concrete Good service Blockbuster promise:
Job of brand

(limit to 2-3) features and attributes Blockbuster ‘Get the film you want or hire
it for free next time’

Benefits Product development, Specific reasons for purchase, Pro-vitamin B5; ‘Hair so healthy it shines’
(limit to 2-3) communication emphasis not reasons to believe doesn’t dry hair Pantene Pantene

continued/…

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Figure 5.3b: Positioning tips and tricks

Inspires and guides Tips and tricks Bad examples Good examples
Values Issues to campaign on, Make them provocative Quality, teamwork Setting the bar high,
Human side

(limit to 2-3) brand behaviours with and polarising Prêt à Manger one for all, all for one
customers Prêt à Manger

Personality Guide tone, feel and style Make them colourful Reliable, honest, Solid as a rock, straight
(limit to 3-4) of communication and not bland friendly Clearasil as an arrow, best mate
front-line staff Clearasil

Promise Key summary input Focused on what it is and Affordable short-break holiday Magical place where everyone
Rally calls

(limit to 15-20 words) for briefs why it is better. Inject colour, offering best combination of can live out adventures they
emotion and edge activities for all the family DLP have dreamt off DLP

Essence Shorthand check for Capture emotion not just Best shave Gillette, Ultimate performance
(limit to 2-4 words) reviewing the brand mix function, inspire future growth male attractiveness Lynx Gillette, pulling power Lynx

Source: Taylor, D. (2002) The Brand Gym. London, John Wiley & Sons.

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Performance of the product/service in

Figure 5.4: Facilitating an integrated brand through addressing
relation to the brand promise
four key brand communicators (adapted from Wolff Olins, 1995)
“Customers experience brand behaviour not
brand plans.” [Stagliano, A. and O’Malley, D.,
2002]

PRODUCT/ STAFF At the heart of the brand is the promise that it

SERVICE BEHAVIOUR makes to its customers. Companies keep their
promises by understanding their brands and
acting on that understanding in every
endeavour. That promise is carried out by
people at all levels of the company – from CEO
to the line worker – so that integrated
BRAND branding is much more than communications
VALUES strategy or a set of messages. When brand
promise meets customers in an integrated
way, through products, services,
communications and culture, it produces
unique and valuable customer relationships.
COMMUNICATIONS ENVIRONMENT
[LePla and Parker, 2002]

“Successful branding is not just about

Source: de Chernatony, L. (2001) From Brand Vision to Brand Evaluation.
London, Butterworth-Heinemann.
communicating a unique personality or brand
identity. It is about delivering the promise
made to customers, and that makes it a
responsibility of everyone in the company.
These brand promises are no longer just
empty advertising slogans. They are the heart

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and soul of the brand. They are the things that

Figure 5.5: Brand engagement
everyone in the organisation is charged with
delivering. Thus branding is no longer just
sending the messages, it’s living the brand
INTELLECTUAL every day in every way.” [Schultz & Schultz,
I understand our brand 2001]
I know what we stand for
I know how we are different Internal alignment behind the brand
I know where we are going
And how we will get there promise

Mobilising the people in the organisation

Lack of behind the brand is the key to achieving
commitment, growth. This requires taking people on a
energy and Lack of
action journey of commitment from rational
passion
understanding through emotional engagement
BRAND to alignment of behaviour. [Taylor, 2002]
BEHAVIOURAL ENGAGEMENT
My role is clear No matter how strong the insight, vision and
I know how to treat EMOTIONAL strategy are, without motivating and directing
customers Lack of The brand fits my
The key messages discretion and the people in the organisation it is impossible
values
I need to communicate consistency I belong here to deliver the brand promise consistently. More
are clear I live the spirit of and more people are using internal
this company communication to try to encourage people to
‘live the brand’. Many of those are falling into
the trap of talking about the vision without any
effect on the way a business is run, which
amounts to a cosmetic cover-up of problems
within the organisation. In the same way that
Source: Poundsford, M. (2001) Engaging your workforce. Brand Strategy, Feb, p.12. consumers are disappointed when a product

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fails to live up to the promise made in
communication, the same goes for the
employees and the company they work for. In
reality, such internal communication has a
limited role to play in engaging and aligning
people with the brand.
“You don’t create a culture, you catch it like a
virus. People see new behaviours and copy
them until they become the way we do things
here” [Phil McManus, head of internal
communication at Vodafone]
Integrated brand communications

Central to modern marketing management is

Figure 5.6: Integrated marketing communication and the brand the concept of ‘integrated marketing
communications’; the planning and execution
SALES
of all types of communication to meet a
PROMOTION
common set of objectives for the brand. The
DIRECT DIRECT aim is to support a single positioning through
RESPONSE MARKETING advertising, PR, or co-branding. A holistic view
of the brand should be pursued. This is not to
say that there must be one rigid, omnipotent
MEDIA BRAND PACKAGING message, rather it suggests that the messages
ADVERTISING VALUES AND conveyed by different media need to
DESIGN interconnect. They all need to tell broadly the
same story. There is nothing to be gained from
PUBLICITY POINT- promising one thing in your advertising and
AND PR OF-SALE not being able to deliver at the point of sale.
EVENT In fact, there is nothing worse for a brand
MARKETING than empty promises.

Another reason for adopting integrated brand

Source: Macrae, Ch. (1996) The Brand Chartering Handbook. Essex, Addison Wesley, p. 377. communications is that messages aimed at
one audience are increasingly seeping out into

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5. MANAGING AND DEVELOPING BRANDS
the spheres of other audiences. It would be
misleading to think of different stakeholder
groups (eg, employees, consumers,
shareholders) as isolated and mutually
exclusive groups. Arguably, as much attention
should be given to ‘managing the employee
brand’ as to the consumer brand, as
Employees are the most employees are the most direct link between
direct link between the the brand and its customers. [Uncles, 1996]
brand and its customers.
Five points to remember when
implementing integrated marketing
communications:
> Audiences will attempt to interpret the
messages you send, but not necessarily in
ways that were originally intended.
> It is the task of management to maximise
the interpretation of intentional messages
and minimise the interpretation of
unintentional messages.
> To do this effectively the process needs to be
managed from the centre. The brand needs
to embody a vision or mission.
> All audiences should be informed and involve
employees and shareholders, as well as
customers and consumers.
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> All audiences interact and interconnect;
indeed, because the same person often has
different roles, brand communications ought
to be broadly consistent across these
audiences. [Uncles, 1996]
Maintaining brand integrity across
touch points
“The way we interpret the body language of
brands means that the apparently trivial can
be greatly significant.” [Bullmore, 2001]
Advertising, packaging, price and promotions
have this in common: they are all within the
control of the marketing company. To be rather
more accurate: the transmission of these
brand stimuli is within the control of the
marketing company. The reception however, is
not. [Bullmore, 2001]
However, there are other factors which lie
outside the brand’s control, but their effect on
the public can be significant. Because they are
impossible to foresee or orchestrate, they tend
to be totally ignored. Examples of these
include: a story in the press about racial
discrimination or unethical employment
practices at a brand’s factory, an anti-brand
crusading website, a product recall for safety
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5. MANAGING AND DEVELOPING BRANDS
reasons, dangerous driving by a clearly
branded truck, or two cars of the same make
Because so much broken down at the roadside within a mile of
depends on having a each other. Most chance encounters are
product in the right negative in impact; and every single one of
place at the right time, them will have some lasting effect on the
people’s aggregate belief in the brand – and
it is necessary for therefore on its success and profitability.
manufacturers to take
the retailers’ reaction to Future prizes will go not just to those who
products into account. make the fewest errors, but also to those who
recover, apologise and take corrective action.
Intelligent, informed and trusted staff can turn
even a catastrophic brand encounter into a
reinforcement of brand loyalty. [Bullmore,
1999]
Distribution
In the field of consumer goods that do not
require much consumer involvement, it is no
longer the consumer who is solely responsible
for the success and failure of a brand, but
distributors. In deciding whether or not to give
room to a new brand, they are the ones who
can cause it to fail. They are also the ones
who can cause the premature decline of a new
brand if they judge its turnover to be too
sluggish. Manufacturers’ brands now also need
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to compete with distributors’ own brands
which offer higher margins to retailers.
Because so much depends on having a product
in the right place at the right time, it is
necessary for manufacturers to take the
retailers’ reaction to products into account and
develop a mutually beneficial relationship.
Brand protection
Intellectual property – what is it?
> Intellectual property (IP) rights provide legal
protection for some of the most important
aspects of a brand. They protect, for
example, the name, logo, label designs,
packaging shapes, advertising, slogans,
domain names and sometimes the product
itself. Even sounds and smell can be
protected if they are distinctive.
Case study: Remington vs Phillips
> These rights are essentially preventative in
effect: they prevent a third party doing
something they would otherwise be able to
do. the purpose is to encourage investment
and innovation and to discourage copying.
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5. MANAGING AND DEVELOPING BRANDS
> IP may be bought, sold, mortgaged or
leased just like tangible property such as
land. This is usually called ‘assigning’ or
‘licensing’ and can be an important business
opportunity and source of income.
> Rights tend to be national with every country
having its own laws (with exceptions like the
Community Trade Mark in the EU). Owning a
right in one country does not necessarily
mean the right is held in another country.
> The main rights associated with brands are:
> Trademarks (registered or common law)
> Copyright and database rights
> Designs
> Patents
> Unfair competition/passing off
> Trade secrets/confidentiality.
> Although not an intellectual property right,
domain names on the Internet provide
important signposts to the brand, requiring
careful management.
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Best practice
Trademarks
> Choose new trademarks carefully.
> Make sure they aren’t being used by others.
> Register the trademark.
> Make sure you use them correctly.
> Control their use when licensing.
> Take action against misuse immediately.
Copyright
> Ensure that with any creative work from an
outside supplier the copyright is transferred
to you.
> When merchandising copyright material,
control and monitor usage.
> Where possible find ways to incorporate
small but deliberate mistakes to prove
copying has taken place.
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5. MANAGING AND DEVELOPING BRANDS
> Take action on copying immediately.
Designs
> Apply for design registration as soon as
possible – certainly within 12 months of
‘publicly’ disclosing the design.
> For Unregistered Design Right, record the
design in a design document or make a
prototype to obtain protection.
> Ensure your rights are acknowledged and
protected in any merchandising agreement.
> Look out for copies and take action if you
find any.
Patents
> Keep ideas confidential until filing a patent
application.
> Mark everything involved as confidential.
> Before filing only make any disclosures to
those under an obligation of confidence.
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> If you commission work that includes an
invention, try to get all patent rights
outright.
> Be vigilant.
Unfair competition/passing off
> Watch out for anyone who suggests there is
a connection with you where none exists.
Take action quickly.
> Laws vary widely from country to country.
> Preserve any evidence of confusion.
Domain names
> Establish a centralised policy for clearing and
tracking your domain names(s).
Trade secrets/confidentiality
> Treat it with great care and on a ‘need to
know’ basis.
> Take action quickly against any leaks.
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5. MANAGING AND DEVELOPING BRANDS
Some brand management scenarios
Developing a new brand
New brand launches are risky, involved and
lengthy commercial propositions. Dot com
companies spent millions in the late ’90s
building awareness but failing to build brands.
A brand is not built overnight but by continued
use of a product or service over time.
Consistent experience of the benefits builds
relevance, preference, confidence and trust in
the minds of users, and builds the brand.
The starting point is the recognition that – for
existing companies, products and services – a
brand already exists, although it may not have
Being the first been consciously identified or managed.
to market with a new People, including users, will have a perception;
those perceptions, however, may not
brand establishes a necessarily be positive and may not evoke any
reputation for being the strong beliefs at all. They may have no opinion
original, with greater of the value delivered over competitors. Such
market knowledge, and perceptions form the brand although, in this
potentially greater scenario, a particularly weak one.
economies of scale.
Building a brand from scratch is not the easy
option. It requires a proposition that delivers a
genuine functional advantage over competitors.
The delivery of that proposition must be
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consistent, reinforced where possible by a
guarantee. The whole organisation needs to be
culturally aligned to deliver that proposition
with passion. Users have to experience the
functional advantage to the extent that they
depend on it, confident that it really delivers
superior performance every time.
It involves significant investment, in creating
the superior functional performance, building
the team and culture to deliver it,
communicating it and supporting it. With the
significant investment comes commercial risk
although a deep understanding of users, built
from marketing research studies undertaken
prior to launch, reduces the chances of failure.
Being the first to market with a new brand,
however, establishes perceptions specific to
your brand, a reputation for being the original,
with greater market knowledge, and potentially
greater economies of scale. Customers become
loyal and ask for a brand which has come to
define the product field (eg, Amazon.com for
buying books on-line). Brands that are pioneers
have the opportunity to gain greater
understanding of the technology by moving up
the learning curve faster than competitors.
[de Chernatony, L. and McDonald, M., 1998]
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5. MANAGING AND DEVELOPING BRANDS
Case study: Amazon
Failure rate for new Failure rate for new brands is much higher
brands is much higher than for new products using an existing brand
than for new products name. This is due to the added costs of
using an existing brand gaining consumer awareness and trial, and
therefore the additional revenue necessary to
name. achieve acceptable profits. According to
Davidson [1997] new brands should be
launched only where some or all of these
conditions apply:
> No existing company masterbrand or
individual brands can be stretched far
enough to capitalise on the new opportunity
> The new brand is capable of achieving
superior customer value, relevant
distinctiveness, low-cost operation,
marketing and sales support, acceptable
economics
> The opportunity can only be exploited fully
with a new brand
> The proposition and economics of a new
brand have been thoroughly pre-tested.
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Entering new geographic markets
Read more about this topic in eguide 2: Types
of brand – Global brands
Maintaining/re-building brand
relevance
“Being clear about what a brand does and,
equally importantly, does not stand for,
managers can sustain their brand’s
competitive advantage through the way its
activities fit and reinforce each other.”
[de Chernatony, L. and McDonald, M., 1998]
The natural state for brands, if left alone, is
one of decline. As competitors deliver better
performance, or the same performance for less
cost, consumers’ needs change, cultures
evolve and existing users grow older, brands
can quickly lose their relevance.
The first stage in maintaining and revitalising
brand relevance is to investigate what
consumers think and feel about the brand. It is
important to consider the relationship the
brand has with consumers and whether this is
still relevant. Changes in consumers’ lifestyles,
pressures and needs must be understood so
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5. MANAGING AND DEVELOPING BRANDS
that the solutions delivered by the brand
remain relevant and effective. It is also
necessary to understand the gap between the
performance of current solutions on the
market and consumers’ ideal, as any gap risks
being filled first by a competitor.
Solutions to maintaining and revitalising brand
relevance will depend on the nature of the
problem. If any changes are required to brand
performance, personality or communication,
marketers need to consider how these would
affect what the brand has always stood for –
its core values.
Where brand performance is weakened, or a
gap exists between current performance and
consumers’ ideal, performance-related
innovation is likely to be the primary driver for
maintaining brand relevance. If a brand fails to
perform because it has been leapfrogged by a
competitor, that brand will be damaged and
Relevance can be re- must re-assert its leadership position if it is to
established by adjusting continue to thrive.
delivery of the product
Changing the brand’s performance may not
or service, the always be the right answer. If a brand is losing
distribution channels its relevance, can the brand be re-positioned
used, pricing or to meet different or new needs? Relevance can
communication. be re-established by adjusting any of a range
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of elements in the marketing mix, including
delivery of the product or service, the
distribution channels used, pricing or
communication. Budweiser added an
idiosyncratic element to its brand personality
through its ‘Whassa?’ advertising campaign,
while Stella Artois succeeded by adopting very
different positioning in the UK market
(‘reassuringly expensive’) compared to its
native Belgian market.
Case study: Lucozade
There needs to be mechanism in place
whereby any activity that affects the brand is
carefully considered against the statement of
core values to ensure that none of the core
values would be adversely affected. This type
of system emphasises a long-term view of the
brand and the brand equity gained over time
as opposed to short term measures. A further
advantage of having a statement of brand
values is that it enables managers to check
their interpretation of the brand against the
agreed view. [de Chernatony, L. and
mcDonald, M., 1998]
Finally, all changes must be carefully co-
ordinated to ensure that each element of the
marketing mix supports the new proposition.
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5. MANAGING AND DEVELOPING BRANDS
This proposition needs to be communicated to
all stakeholders in the brand. [de Chernatony,
L., 1998]
The task of revitalising The task of revitalising old brands is less
old brands is less difficult when the core values of the brand
difficult when the core have been protected and consistently
presented to consumers. It can be less
values of the brand have
expensive and less risky to revitalise an
been protected and established brand, when it is possible, than to
consistently presented develop and launch a new one.
to consumers.
What is clear about brands with a long history
is that they have been subtly adjusted to keep
them relevant to changing market conditions.
Stretching the brand into new product
areas
Brand extensions can be one of the best
sources of profitable growth for a brand. They
also have the potential to rejuvenate the
brand’s imagery. Too many extensions,
however, may eat up money and resources
without delivering any real difference in
performance over existing products, posing the
risk of damaging rather than enhancing the
core brand. The primary motivation behind
brand stretch should always be to deliver
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profitable business growth whilst maintaining,
and preferably increasing, brand equity. This is
done through attracting new users, creating
new usage occasions, superior performance
and premium pricing. [Taylor, D., 2002]
When evaluating brand stretch, it is important
to consider two dimensions:
> Functional stretch: this dimension concerns
the delivery of different benefits that require
different product features and functionality.
> Emotional stretch: this dimension relates to
the emotional associations and personality of
a market or segment.
Brands that are based on functional value may
be more difficult to stretch. In contrast, brands
that are rich in emotional values are less
associated with specific functional benefits and
so are easier to stretch across many product
areas. [Taylor, D., 2002]
Case study: Wedgwood
A useful tool for mapping out the extension
areas is the brand circle [Davidson, 1997] (see
figure 5.7).
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5. MANAGING AND DEVELOPING BRANDS

HOME

Figure 5.7: Example of a brand circle

NO-GO AREAS
NO-GO AREAS
Involvement would seriously
damage and compromise
EXTENSION
clarity of brand proposition
AREAS
EXTENSION AREAS
Areas to which brand franchise Average OUTER Non
Enhanced Out
taste CORE foods
can be widened without damage health of
Glasshome
INNER bottles
OUTER CORE Black-
CORE
Optional attributes currant
> Great taste
Ready > Premium priced Mothers
INNER CORE No > Health benefits with Sugar
to drink artificial free Low
Critical elements in brand identity Male children
position- flavouring price
ing Concentrated
Plastic drink Flavours
bottles
Ribena UK sales increased
by 1000% in 1980-95 Carbonated
Medical Mainstream
positioning soft drink

Source: Davidson (1997), Even More Offensive Marketing

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5. MANAGING AND DEVELOPING BRANDS
Extension can be beneficial to a brand,
however it can also be dangerous. Bullmore
compares brand extension to the second law
of thermodynamics, which states that ‘when
two objects touch, and their temperatures are
different, heat will flow from the warmer to the
cooler until their temperatures are equalised’.
When existing strong When existing strong brands are used to foster
brands are used to new brands, the master brand will add warmth
and vitality to the sub-brand but it will be
foster new brands, the
unwittingly drained of heat itself. [Bullmore,
master brand will add
1997]
warmth and vitality to
the sub brand but it will Co-branding
be unwittingly drained
of heat itself. A brand can also be leveraged by entering
another product class or market, not by a
brand extension but by band partnerships.
Brand owners in both service and product
fields are increasingly realising the significant
advantages to be derived from co-branding.
It can:
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> Benefit established brands – whether
purchasing IBM computers with ‘Intel Inside’
or clothes with Lycra® ingredient, consumers
have demonstrated a strong preference for
co-branded offers. Co-branding provides an
opportunity to create a new income stream,
boost flagging consumer interest and
increase financial returns.
> Boost new brands – for new brands an
alliance with a famous partner may bring
immediate credibility. Co-branding has
fuelled the growth of some of the most
powerful new brands of recent times, such
as Intel, NutraSweet and Cisco.
> Assist brand development – a co-branded
range can be developed using the
distribution channel of one of the brands.
Co-branding is not without risks however. As
with traditional brands, extensions to new
sectors may stretch brand equity too far. A
careful match of both brands’ values, a similar
focus on long-term brand development, and a
careful choice of target market, however,
should ensure the success of such union.
Co-branding
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5. MANAGING AND DEVELOPING BRANDS

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Franchising “A Benetton shop owner agrees to sell

Benetton products, we agree to take care of
Turning a brand into a franchise has a number the image and promotion of the Benetton
of key attractions. It can allow the brand to trademarks and guarantee speed and
become national (or international) in its timeliness in the supply of our merchandise.”
coverage quickly and at minimal cost. [Crainer, 1995]
However, some franchises have fallen down,
simply because the franchiser and the
franchisee could not agree on how a business
should be run, or insufficient attention is
devoted to the consistency and quality of the
The trouble comes when customer experience. The trouble comes when
the answer to the the answer to the thorny question of who
thorny question of who actually runs the business is not clear. While a
franchise company believes it has a winning
actually runs the
formula, the franchisees will want to do things
[franchise] business is their own way, as they claim to know the local
not clear. market better. [Crainer, 1995]

Benetton is an interesting example. Its shops

are franchises. The company advises on shop
decor, location, advertising and product
purchases but it does not receive royalties on
sales or give exclusive rights for a particular
area. Luciano Benetton describes the process
as follows:

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5. MANAGING AND DEVELOPING BRANDS

HOME

Checklist > Do you keep the brand fresh though

> The promise that the brand represents
should be based in reality.
> What are the core values of your brand?
> Are they conveyed in every consumer-brand
encounter – through employees,
communication, and direct experience?
> Are you guilty of making empty promises?
> Do you measure your brand equity
regularly?
> Brand differentiation should be more than
skin-deep.
updating it as the market changes?
> Are your brand extensions consistent with
core brand values?
> What are the idiosyncratic elements of your
brand?
> The active brand, not the passive brand, will
succeed.
> Is your brand a leader or a follower in the
market?
> How high up is innovation on your brand’s
agenda?

> How is your brand different to competitors?

> Are those differentiating aspects relevant,

meaningful and valued by the various
stakeholders?

> Can a coherent value system be inferred

from everything your brand does?

> Get the right balance between consistency

and change.

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5. MANAGING AND DEVELOPING BRANDS

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CASE STUDIES
1. Wedgwood: stretching the brand
2. Barr’s Irn Bru: one hundred years young
3. Lucozade: in sickness and in health
4. Remington vs Phillips: a close shave

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5. MANAGING AND DEVELOPING BRANDS
1. Wedgwood: stretching the brand
The Wedgwood brand is one of the oldest and
most prestigious found in the world today. The
quintessentially English brand was founded in
1759 by Josiah Wedgwood, renowned as the
‘Father of English Potters’, and has a long and
proud history of delivering fine pottery to
affluent, upmarket customers; both to be used
as purchased and to be handed down as
family heirlooms.
By applying the emotional associations of the
brand to a variety of new products, Wedgwood
have diversified and expanded into new
categories over the past two decades. In 1986
the company merged with Irish crystal
manufacturers Waterford and the two have
since pursued product developments outside of
their core ceramics and crystal ranges as they
sought to expand into the luxury goods market
as a whole.
Whilst Waterford have developed ranges of
writing instruments, table linen and lamps, the
Wedgwood brand has grown to encompass
products such as jewellery, leather goods and
even gourmet foods. The brand has expanded
into new territories and taken market share
from its competitors, particularly in Japan
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where the Wedgwood name has come to
symbolise gifts of good taste and also in the
UK where long standing relationships with
designers such as Jasper Conran have given
the brand an association with high fashion.
As Wedgwood diversified, however, so
consumers perceptions of the brand altered –
to the extent that research undertaken in 1997
showed that whilst the brand name held a
good reputation and suggested quality to
consumers, they no longer associated it with
it’s core product range of china tableware. The
brand was achieving double digit growth and
sales had risen to a record high of £417million
but the research was still disconcerting for
Wedgwood. Determined not to lose brand
focus, they launched a major new advertising
campaign to bring attention back to the
premium china range and to market the brand
as more contemporary and ‘younger’ than ever
before. As a result Wedgwood have been able
to continue their diversification and growth in
the luxury gifts market whilst maintaining their
core values of tradition and association with
fine pottery which provide the brand with its
integrity.
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5. MANAGING AND DEVELOPING BRANDS
Wedgwood’s most recent developments have
included sponsoring the London Fashion Week
and decentralising operations so that more
individual attention can be paid to each
territory. By concentrating on their strengths in
individual markets, eg gifts in Japan, fashion in
the UK and tradition in the US, Wedgwood now
aim to break the brand into even more
markets such as home furnishings and
toiletries as brand managers seek to carefully
expand the portfolio further.
Recent problems such as the slowing of the
global economy and the impact of September
11th have hurt Wedgwood as a luxury
producer, yet sales in Asia and market share in
the US have both shown dramatic growth and
the company is now looking to double sales
across the brand over the next five years.
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2. Barr’s Irn-Bru: one hundred
years young
[The Leith Agency for Barr Soft Drinks, in
British Brands, Issue 14, Summer 2001]
2001 marks the hundredth birthday of Irn-Bru,
‘Scotland’s other national drink’. More than
this, the year sees standard Irn-Bru in pole
position as the biggest selling grocery brand in
Scotland – ahead of such international grocery
giants as Walkers Crisps, Persil, and Nescafé.
There are very few countries in the world in
which the leading cola is outsold by another
soft drink brand, but Scotland is one of them.
Clearly the distinctive flavour of Irn-Bru
appeals to the Scottish palate, but the scale of
the brand’s success is out of all proportion to
the levels of sales a non-mainstream soft drink
flavour can normally expect. So how does Irn-
Bru manage to punch so far above its weight?
Firstly the product itself is unique. There is
literally nothing else like Irn-Bru. Nothing else
tastes like it, or even looks like it. The recipe
remains a closely guarded secret. For Scots of
all ages, it is a reminder of their childhood; for
those abroad, it is the taste of home.
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5. MANAGING AND DEVELOPING BRANDS
But it is easy for brands with such a strong
heritage to lose contemporary relevance.
Latent brand affinity isn’t always transferred
into sales. The brand ends up very much loved
but not very often purchased. Shrewd
marketing has helped Irn-Bru to avoid this
fate.
By the middle of the nineties, Barr’s wished to
grow the brand in England. Research showed
that the ‘Made in Scotland from Girders’
campaign was extremely successful in
Scotland, but this success didn’t transfer to the
English market. We had to recreate the
advertising so that the English consumer, who
had not grown up with the brand for the past
90 years, could also relate to it.
The key was to adopt the right personality for
Irn-Bru. The Barr’s brand team began visiting
schools to find out what teenagers were
talking about, and in particular what really
made them laugh. This had advantages over
traditional research methods. Whereas in a
research group teenagers can easily turn surly
and uncommunicative, in school they are
expected to contribute their own ideas and
opinions. Consequently, exploring strategic and
creative marketing ideas in the classroom
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produced a notably more dynamic set of
responses.
This kind of initiative helped to get under the
skin of Irn-Bru. As a result a uniquely
compelling personality for the brand has been
developed over time.
Since Irn-Bru itself tastes like nothing else in
the world, the marketing of the brand had to
do justice to it. But in talking to its biggest
fans, we realised that no two kids described
Irn-Bru in the same way. The marketing of the
brand would have to enhance, not deny this
indescribable character. The best description
we found was ‘likeable maverick’ – a self-
confident, unconventional and independent
character who wouldn’t think or behave in
quite the same way as other people. As a
character-type this description of the brand
has a great deal in common with the way our
teenage audience likes to be perceived itself.
And maverick is also a very apt description of
what we sought the marketing to achieve.
Competing against some brands with much
bigger budgets, Irn-Bru has to shout to be
heard. And the best way to do that is to
constantly surprise people.
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5. MANAGING AND DEVELOPING BRANDS
These insights have been used to inspire the
creativity of Irn-Bru’s marketing activity at all
levels, from website design to carefully tailored
sponsorships, to above-the-line advertising.
The maverick tone of voice has proven flexible
enough to produce award-winning advertising
on radio, posters and TV. On TV, from the ‘See
What Irn-Bru Can Do For You’ campaign to the
current award-winning work, Irn-Bru’s
advertising has been consistently amongst the
most popular and talked about for its teenage
target audience.
Because Irn-Bru’s marketing is based on
genuine consumer insight, not nostalgia, it
works just as well south of the border too.
Scots have always loved Irn-Bru – now the
gap is closing as English teenagers increasingly
adopt a brand that speaks to them too. Irn-
Bru sales in England now account for almost a
quarter of total volume. And Irn-Bru’s brand
image has improved dramatically in England
wherever the campaign has been seen.
So long as marketing continues to keep the
brand young, there is every reason to suppose
that Irn-Bru can enjoy another hundred years
of healthy growth.
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3. Lucozade: in sickness and in
health
[Ann-Marie Salmon, Director, Consumer
Healthcare Communication, Smithkline
Beecham, in British Brands, Issue 4, Summer
1997]
It is not without irony that a 50 year old brand
aimed at ‘aiding recovery’ was itself not in
good health at the end of the 1970s. Lower
levels of sickness, less frequent ‘flu epidemics
and price increases all contributed to a decline
in consumer consumption of Lucozade and
between 1974 and 1978 alone, sales had
fallen by 30%. Drastic steps needed to be
taken or half a century of brand heritage
would be lost with little chance of recovery.
Lucozade was first developed in 1927 by a
Newcastle chemist for his son recovering from
jaundice. It was bought by Beecham in 1938
and launched in its classic yellow cellophane
wrapped bottle with the strapline ‘Lucozade
aids recovery’.
The glucose in Lucozade is in a form that can
be easily assimilated into the body so that in
illness, when there is appetite loss or food is
difficult to keep down, a drink of Lucozade can
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5. MANAGING AND DEVELOPING BRANDS
help provide the energy the body needs to
recuperate. The brand was consistently
promoted on this basis through the 50s and
60s, during which time it became Beecham’s
biggest selling brand. However during the 70s,
the brand started its steady decline.
To address this problem, new advertising was
developed aimed at extending usage by
positioning it as an in-health pick-me-up for
housewives. This campaign increased sales by
11% and although the prior decline was
arrested, growth was not maintained for long
and by the end of 1979 sales had levelled out.
This campaign was only part of the company’s
effort to get in-health usage, however. In
1980, a new 250ml wide-mouth bottle was
introduced in the ‘one-shot’ market which
carried the new brand positioning ‘Lucozade
replaces lost energy’. But whatever short term
benefits accrued from the advertising and
packaging initiatives, it was clear from a usage
and attitude study conducted in 1982 that the
underlying character of the brand had not
changed dramatically from its historical norms.
Housewives and children were still the
predominant users and illness and recovery
the main reasons for consumption.
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As a result it was decided that the best growth
opportunity for the brand was in the
carbonated soft drinks (CSD) market, the
rationale being the brand’s excellent in-store
positioning and distribution strength in both
grocery and ‘corner-shop’ markets and the
volume potential in the CSD market. However,
these positive aspects were balanced by a
number of other factors, not least was the
total domination of this market by Coke and
Pepsi. In addition, Lucozade would be
expensive and the brand had a lot of negative
baggage with the younger target audience as
something their mums had given them when
they were ill.
It was felt that these problems could be
addressed via advertising which would do two
things - justify a price premium via a unique
selling proposition and in execution use
imagery which the new young target
audiences would find motivating. The unique
selling proposition to justify the price premium
was based on the brand’s particular benefit
claim - ‘Lucozade is not only delicious and
refreshing, but can quickly replace lost energy’.
The creative solution was to be found in sport
which simultaneously addressed both the
target audience and the product claim.
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5. MANAGING AND DEVELOPING BRANDS
At that time, Daley Thompson was signed as
the spokesman for Lucozade and in July 1983
he featured in a Lucozade ad for the first time.
Results were mixed and extensive analysis of
the advertising showed that consumers liked
Daley but didn’t connect him totally with the
brand.
From this assessment came the ‘Traffic Lights’
TV commercial which sought to ‘portray’ the
energy of Lucozade rather than ‘explain’ it.
The combination of Daley Thompson in slow
motion with the heavy metal Iron Maiden
music chosen for its wind down and slow build
to thunderous crescendo embodied the before
and after promise of dynamic energy, at the
same time branding the advertising
unmistakably.
In the first year of the new advertising, with
no significant gains in distribution or changes
in pricing, volume sales increased by 40% and
were accompanied by sales increase in the
original bottle of 4%. Quantitative and
qualitative research showed that the energy
message was getting through to both existing
users and the new, younger target audience.
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Since then, the brand has gone from strength
to strength with the introduction of new
flavour variants, the 1988 launch of the
Lucozade Sport isotonic drink and the 1995
launch of the NRG teen drink. Many of these
concepts have been successfully transferred to
markets outside the UK in Ireland, Asia and
Australasia. All of these introductions have
included innovative new packaging elements,
developed new loyal consumer groups and yet
have remained true to the core character of
the brand as an energy drink. Even more
graphically, in the ten years between 1985 and
1995, global sales of the brand increased from
£12 million to £125 million, a true illustration
of a brand fulfilling a promise made 70 years
ago...
‘Lucozade aids recovery’
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5. MANAGING AND DEVELOPING BRANDS
4. Remington vs Phillips: a close
shave
Both the Remington and Phillips brands have
long and proud histories in the electronic
grooming market. In 1937 Remington
produced the worlds first electric razor, a true
innovation which still forms the core of their
business today. Two years later, Phillips
entered the market with their own shaver and
they have since gone on to produce over 400
million electric razors under the Philishave
brand, including the revolutionary triangular
three-headed electric shaver in 1966.
The two companies pitched their designs
against one another for some 55 years as
market leaders in electronic grooming products
with Phillips claiming superiority for their
three-headed Philishave product. Apparently
accepting the finer design of the product to the
traditional twin headed shavers they produced;
Remington launched a similar triangular three-
headed electric razor in 1995. Phillips
immediately sued, claiming that the product
infringed on their intellectual property and
trademark of the design. A Phillips press
releases stated: ‘Since its first introduction
some thirty years ago we have invested
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continuously in the quality and the design of
one of the icons of Phillips, the Philishave.
Consumers recognise the form of our three
headed Philishave as Philips and we would like
to avoid confusion in the market’.
Under the 1994 Trademarks act, which allowed
companies to register tunes colours and three
dimensional shapes, Phillips had registered the
design of the product but Remington
challenged the action on the basis that
registering a design such as the Philishave
gave Phillips a monopoly and prevented
competitors from producing products based on
similar technology. The case went through the
courts for some seven years before the
European Court of Justice ruled against Philips
last June. The verdict was that Philips own
advertising had emphasised the superiority of
the design over that of their competitors and
in doing so they had established that the
design was fundamental to the way the
product works, undermining their right to
trademark it as a brand feature.
The ruling was a landmark as it was the first
time the principle of design trademarks had
been tested and emphasises to what extent a
product design can be protected. The courts
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5. MANAGING AND DEVELOPING BRANDS

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judged that, whilst a particular design can be

protected if it is widely associated with the
brand, the shape of a Coca-Cola bottle for
example, this is not the case if that design is
fundamental to its operation. Intellectual
property is protected if a rival is attempting to
‘pass off’ a product and confuse consumers
but as Remington were employing the same
technology but clearly marketing it under their
own brand, and as Philips themselves had
declared the design technologically rather than
aesthetically superior, the design was not
protected.

Philips have appealed against the verdict and

the interpretation could yet be heard in
domestic courts in individual territories.
Remington, however, have claiming the
judgement as a victory that will clear the way
for them to market their triple headed electric
shavers throughout the UK and Europe.

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