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Strategic Brand
Management
STRATEGIC BRAND MANAGEMENT
9-2
1) STRATEGIC BRAND MANAGEMENT
1) 9-3
A brand is a name, term, design, symbol, or any
other feature that identifies one seller’s good or
service as distinct from those of other sellers.
American Marketing Association
1) *Stephen LVargo and Robert F. Lusch, “Evolving to a New Dominant Logic for Marketing,” Journal of Marketing, January 2004, 1-17. 9-4
Strategic Role of Brands
• reduce the social and psychological risks associated with owning and using
the “wrong” product by providing psychological rewards for purchasing
brands that symbolize status and prestige.
1) 9-5
FOR SELLERS, BRANDS CAN FACILITATE:
Short-Term Pressures
1) *David A. Aaker, Building Strong Brands, 1996, 26-35. 9-7
Brand Management Responsibility
Product/Brand Management
▪ Planning, managing, and coordinating the
strategy for a specific product or brand
Product Group/Marketing Management
▪ Product director, group manager, or
marketing manager
Product Portfolio Management
▪ Chief executive at SBU
▪ Team of top executives
1) 9-8
Strategic Brand Management
1) 9-9
A) STRATEGIC BRAND ANALYSIS
□ Market and
Customer
□ Competition
□ Brand(s)
9-10
Tracking Brand Performance
Performance
Objectives
Identify Problem
Products
Decide How to
Resolve the
Problem
9-11
Product life cycle
analysis
Financial Product
analysis performance
analysis
Analyzing Brand
Performance
Brand
Researc positioning
h Standardized analysis
studies information
services
9-12
Product Life Cycle Analysis
9-13
* Product Performance Analysis
▪ Management’s performance criteria
▪ Strengths and weaknesses relative to portfolio
9-14
B) Brand Equity Measurement &
Management
9-15
BRAND EQUITY
Company/Customer Value
of Brand Name and
Symbol of
a Product
Determined by the
brand’s set of
assets (and liabilities)
9-16
Brand Equity
* David A. Aaker, Managing Brand Equity, The Free Press, 1991, 15.
**Ibid, 102-120.
9-17
Measuring Brand Equity. Several measures are needed
to capture all relevant aspects of brand equity.**
* loyalty (price premium, satisfaction/loyalty),
* perceived quality/leadership measures (perceived
quality, leadership/popularity),
* associations/differentiation (perceived value, brand
personality, organizational associations),
* awareness (brand awareness), and
* market behavior (market share, price and
distribution indices).
These components provide the basis for developing
operational measures of brand equity.
9-18
C )BRAND IDENTITY STRATEGY
Combinatio Corporat
n e
Branding Branding 9-20
D) MANAGING BRAND STRATEGY
Proactive efforts
should be devoted to
managing each brand
over time.
9-21
Strategies for Improving Product Performance
Product
Cost improvement Alter
reduction marketing
Product strategy
Add line Eliminate
new Strategy specific
product(s) product(s)
9-22
E) MANAGING THE BRAND PORTFOLIO
Leverage
Commonalities to
Generate Synergy
Allocate Reduce
Resources Brand
BRAND PORTFOLIO Identity
OBJECTIVES Damage
Source: David A. Aaker, Building Strong Brands, New York: The Free Press, 1996, 241-242.
9-23
Strategies for Brand Strength
▪ Brand-Building Strategies
* Developing the brand identification strategy
* Coordinate identity across the organization
▪ Brand Revitalization
* Find new uses for mature brands
* Add products related to heritage
▪ Strategic Brand Vulnerabilities
* Brand equity can be negative
* Retailer private brands compete with manufacturer brands
* Major shifts in consumer tastes
* Competitive actions
* Unexpected events
9-24
Product Mix Modifications
9-26
27
9-27
LEVERAGING ALTERNATIVES
New Core
Down-Market Brand
Brand
Ex: Pepsodent Powder
* ONE OF THE MOST DIFFICULT
BRAND PORTFOLIO CHALLENGES
9-29
MOVING DOWN IS EASY BUT RISKY
THE DRIVERS
•Enhanced Margins at the High End
•Energy & Vitality
•Enhance Credibility and Prestige of the Brand
Component co-branding
(Volvo and Michelin)
Same company co-branding
Alliance co-branding
(Delta and American Express)
Ingredient co-branding
9-33
BRAND LEVERAGING EVALUATION
CRITERIA
▪Brand Relevance/Differentiation
▪Capabilities/Perceived Value Match
▪Market/Segment Opportunity
▪Cannibalization Risks
▪Potential for Core Brand Damage
▪Clarity of Product Offerings
▪Estimated Financial Performance
▪Brand Equity Impact
9-34
SEVEN DEADLY SINS OF BRAND
MANAGEMENT*
▪Failure to fully understand the meaning of the
brand.
▪Failure to live up to the brand promise.
▪Failure to adequately support the brand.
▪Failure to be patient with the brand.
▪Failure to adequately control the brand.
▪Failure to properly balance consistency and
change with the brand.
▪Failure to understand the complexity of brand
equity measurement and management.
*Kevin Lane Keller, Strategic Brand Management, Prentice Hall, 2003, 736. 9-35