Therakorn Yardpaga 3M Thailand Ltd.

1. Therakorn Yardpaga3M Thailand Ltd. “Brand Management”

2. What is a Brand ?

3. What is a Brand? Term Symbol Identifies product/service of seller Differentiates from competitors Design Name Combination Sign Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

4. Brand Recognition The stage of brand acceptance at which the consumer knows of a brand, but does not prefer it to competing brands.

5. Brand Preference The stage of brand acceptance at which the consumer selects one brand over competing offerings based on previous experience with it.

6. Brand Insistence The stage of brand acceptance at which the consumer refuses to accept alternatives and searchers extensively for the desired good or service.

7. Types of Brands Generic Products No name cigarettes Manufacturer Brand Kodak, Heinz Private Brand Kenmore, DieHard Craftman Family Brand KitchenAid Appliances, Johnsons & Johnson products Individual Brand Lever’s Aim, Close-Up &Pepsodent Toothpastes

8. Brand Manager A marketing professional charged with planning and implementing marketing strategies and tactics for a brand.

9. Brand Name The part of a brand consisting of words or letters that form a name to identify and distinguish a firm’s offerings.

10. Brand Mark A symbol or pictorial design that identifies a product.

11. Generic Name A brand name that has become a generally descriptive term for a class of products.

12. Trademark A brand to which the owner legally claims exclusive use.

13. Brand Extension Application of a popular brand name to a new product in an unrelated product category.

14. Brand Dilution A loss in brand equity that results when a firm introduces too many brand extensions.

15. Brand Licensing The practice of allowing other companies to use a brand name in exchange for a payment.

16. Co-branding The practice of combining two strong brands, perhaps owned by different companies, to sell a product.

17. What is Brand Equity ?

18. What is Brand Equity? Perceived Brand Quality Brand Associations • Attributes • Benefits • Attitudes Brand Awareness Brand Equity Other Proprietary Brand Assets Brand Loyalty Provides Value to Firm by Enhancing: • Efficiency and Effectiveness of Marketing Programs • Brand Loyalty • Prices/margins • Trade Leverage • Competitive Advantage Provides Value to Customer by Enhancing Customer’s: • Interpretation/processing of information • Confidence in the Purchase Decision • Use Satisfaction Source: Aaker (1991) “Managing Brand Equity”

19. Measuring Brand Equity

20. Indirect Measurement • Measure consumer brand awareness • Use aided and unaided memory measures • Measure Brand image • Use qualitative and quantitative techniques • Useful for identifying the aspects of brand knowledge which potentially cause the response that creates customer-based brand equity Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

21. Direct Measurement • Comparative • Assess the effect of consumer perceptions and preferences on aspects of the marketing program • Holistic • Estimate overall value of the brand • Useful in approximating the possible outcomes and benefits that arise from the response that creates customer-based brand equity Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

22. Implement Measurements • Conduct Brand Audit • Brand inventory: access health of brand • Brand exploratory: uncover sources of equity • Brand positioning: improve and leverage equity • Develop Brand Tracking Procedures • Monitor strength, favorability and uniqueness of key brand associations • Track preferences for brand, usage, price sensitivity, etc • Track marketing program’s effect on brand image • Create Brand Equity Management System • Brand equity charter • Brand equity report • Brand overseers Keller, Kevin Lane. Strategic Brand Management: Building, Measuring, and Managing Brand Equity. 1998.

23. Evaluate current position of brand/product Brand Scorecard 1. The brand excels at delivering the benefits customers truly desire. 2. The brand stays relevant to consumers. 3. The pricing strategy is based on consumers’ perceptions of value. 4. The brand is properly positioned. 5. The brand is consistent. 6. The brand portfolio and hierarchy make sense. 7. The brand makes use of and coordinates a full repertoire of marketing activities to build equity. 8. The brand’s managers understand what the brand means to consumers. 9. The brand is given proper support, and that support is sustained over the long run. 10. The company monitors sources of brand equity. Source: Kotler, The Brand Report Card, HBR, Jan. 2000

24. Determining Associations with the Brand Name Associations with the Brand Name Projective Techniques Jan had just finished eating the Campbell’s tomato soup and felt… Name Associations What comes to mind when the following brands are mentioned? Exploring Perceptual Differences What other brands is it different from and why? Managing Equity: Capitalizing on the Value of a Brand Name. 1991

25. Building Brand Equity:Brand Development

26. Brand Growth Strategies Present Products New Products II. Brand Extensions I. Rejuvenating a Brand • Find New Uses • Increase Usage • Extend the Brand • Obsolete Existing Product • Augment the Product/Service • Reposition the Brand • Enter New Markets • Add product features, product refinement • Expand the product line • Develop a new generation product • Develop new products for the same market Present Markets IV. Brand Development III. Brand Expansion • Segment • Target • Position • Marketing Plan • Test Market • “Lift-Off” • Expand geographically • Target new segments New Markets

27. Brand Development • Evaluate the current health of brand • Determine growth objectives of company and potential product usage growth opportunities • Measure long-term potential impact of opportunities against current brand equity • Launch into the new market • Re-evaluate brand positioning & impact

28. 1. Segment and 2. Target Finding the Pain Estimating the Gain 5. Test Market & 6. “Lift-Off” Market Testing Commercialization 3. Position Create the Brand Communicate the Brand Brand Development 4. Marketing Plan Four Ps Product Development

29. 1. Segment - Find the Pain Strategic windows to look for in deciding to enter a new market: • A segment of consumers whose needs are not being satisfied (quality, service, or specialization needs). • A segment not targeted by others. • A position or segment held by a weak competitor. Once an idea is found make sure it meshes with the company’s corporate vision and core competencies.

30. 2. Target Estimate the Gain • Factor and Cluster analysis: determine segments. • Regression analysis: identify best segment(s) to target. • Funnel Model: forecast total market and market segment shares now and in the future. • Mitigate risks such as seasonality and business cycle • Additional factors include: 1. Technical/Competence 2. Legal 3. Social 4. Competitive 5. Financial

31. 3. Position • Market Opportunity Analysis • Deliver one singular benefit • Define your product in the clearest terms possible • Define user profiles; aiming toward Love Group • Brand name • Make a statement with the name • Brand Logo & Symbol • Logo should be designed to fit both eyes • Use color opposite to major competitor

32. 3. Position(cont.) • Brand Slogan • Be unique in the consumer’s mind • Success is the claim to authenticity • Claim to be the “leader”, not “better” • Trying to be all things to all people weakens the brand • Brand Tagline & Byline • Tagline: express current functional & emotional benefits • Byline: descriptive words to tell consumer where to place the brand

33. 3. Position(cont.) • Brand Creation • How many brands exist? • Outline the underlying architecture for the brand name, byline, tag line, logo, and the brand story. • Consider trends, profile existing brands and determine how decisions are made that affect brand choice. • Include branding in everything from finance to operations • Test product concept and positioning

34. 3. Position(cont.) • Brand Creation Strategy • Specify sales and market share and communication objectives and strategies to accomplish them • Specify tactics of specific action to achieve each strategy • Develop a timeline and product roadmap

35. The Brand Position Statement Answers four questions: • Which elements of the brand identity should be part of the proposition and active communication program? • Who is the target audience - primary and secondary? • What are the communication objectives? • What will be the points of advantage? Aaker, David A. Building Strong Brands. 1996

36. Brand Position • Trends • Motivations • Segments • Unmet Needs • Brand Image/ Position • Strengths/vulnerabilities Customer Analysis Competitor Analysis StrategicBrand Analysis Self-Analysis • Existing Brand Image • Brand Heritage • Strengths/Weaknesses • The brand’s soul • Links to other brands Aaker, David A. Building Strong Brands. 1996

37. A Brand Image Can: Reinforce image strengths Add associations Reinforced & Exploited Augmented Exploit positive differences Diffused, Softened Or Deleted Soften restrictive perceptions Eliminate images inconsistent with the brand identity Specify what the brand is not Aaker, David A. Building Strong Brands. 1996

38. Creating a New Brand Name • Does it make learning the brand easier? • Is it unique and likely to be superior to competitors in stimulating associations? • Can the brand justify marketing support adequate to establish the name? Managing Equity: Capitalizing on the Value of a Brand Name. 1991

39. Marlboro -- Masculine Benefits of Brand Consistency Ownership Of A Position Maytag -- Dependable Federal Express -- Overnight More Productive Slogan Image Ownership of Identity Symbol Cost Efficiencies Spokesperson Jingle Less Expensive Aaker, David A. Building Strong Brands. 1996

40. 4. Marketing Plan • Product • Variety, Quality, Name, Features, Packaging, Sizes, Services, Warranties, Returns • Usage models and scenarios • Pricing • List price, Discounts, Allowances, Payment period, Credit terms • Placement • Sales promotions, Advertising, Sales force, Public relations, Direct marketing

41. 4. Marketing Plan (cont.) • Promotion • PR, radio, print, consumer promotion, sampling, direct marketing, third-party marketing • Reach vs. Frequency; National vs Spot markets; Steady vs. Pulsing vs. Seasonal • Product Development • Communicate vision into actual product • Test within company, with select customers, with consumers

42. 5. Test Markets • Market Testing • Measure consumer testing by trial, first repeat, adoption and purchase frequency • Success Metrics • Achievement of each year’s goals • Support Environment • The level of service a customer receives affects their perception of the brand

43. 6. “Lift Off” • Have you generated your idea? • Have you done research on the target market? • Has the brand been created? • What is your marketing plan? • Has your product tested successfullyin the market?

44. Rejuvenating A Brand

45. Brand Growth Strategies Present Products New Products II. Brand Extensions I. Rejuvenating a Brand • Find New Uses • Increase Usage • Extend the Brand • Obsolete Existing Product • Augment the Product/Service • Reposition the Brand • Enter New Markets • Add product features, product refinement • Expand the product line • Develop a new generation product • Develop new products for the same market Present Markets IV. Brand Development III. Brand Expansion • Segment • Target • Position • Marketing Plan • Test Market • “Lift-Off” • Expand geographically • Target new segments New Markets

46. 1. Find New Uses 2. Increase Usage 3. Extending the Brand 4. Obsoleting Existing Products 5. Augment the Product/Service 7. Enter New Markets 6. Reposition the Brand Rejuvenating the Brand Brand Rejuvenation David Aaker, Managing Brand Equity

47. How To Evolve a Brand and Make It More Contemporary New Products • Jell-O Jigglers • Quaker Oat • Squares Update Slogans • GE – Electricity / • Technology / • Progress Update Name • Federal Express / • FedEx • Kentucky Fried Chicken / • KFC • TAC / DTAC Update Symbols • 3M • Mazda • Singha Beer Aaker, David A. Building Strong Brands. 1996

48. Brand Rejuvenation 1. Find New Uses • Conduct market research to see exactly how consumers use the brand. • Examine competition for applications

49. Frequency of Use Reminders Incentives Ease or convenience of use Occasions Locations Level of Use Reminders Incentives Reduce negative associations with frequent use Develop positive associations with frequent use Brand Rejuvenation 2. Increase Usage

50. 3. Extending the Brand Brand Rejuvenation More Good The Extension Enhances the Brand Name Good Brand Name Aids the Extension EFFECTS OF EXTENDING A BRAND TO A NEW PRODUCT Bad The Brand Name Fails to Help the Extension More Ugly New Brand Name is Foregone Step 1: Determine brand name associations Step 2: For each association identify related product categories Step 3: Select candidate products The Ugly The Brand Name is Damaged David Aaker, Managing Brand Equity