Brand equity by Garincha Mastrosiani

Managing Brand Equity Dec 5, 2008

Some Enduring Brands

Some quesGons to consider… •  •  •  •  •  •  •  •

2/20/14

What makes brands great? Why do some brands endure? Why do some brands struggle? When should a brand stay the same? And when should it change? How should brands be launched? Why do brands die? How do brands become “hot”?

The Long Term View Maintaining a brand requires constant vigilance, knowing when to pile on, when to ‘twist’ and when to start over.

Maintaining a Brand over Time Nivea and Dove How do their strategies diﬀer? Which is most eﬀecGve?

Today •  Line extensions •  Brand revitalizaGon •  Importance of cultural relevance

LINE EXTENSIONS

Line Extend or Build New Brand? •  No hard and fast rules –  Lots of examples on both sides

•  Understand role of new brand in por]olio •  Build aﬃnity •  Build revenue

•  Need to understand ability of exisGng brand to stretch –  With consumers and trade –  Assess risks as well as rewards of stretching •  The “Spandex Rule” says just because you can doesn’t mean you should! Severe penalGes for stretching too far •  But! Must be willing to ‘do to yourself before others do unto you

Winners & Losers http://www.tippingsprung.com/form/index.html

Iams Pet Insurance Febreze Scentstories Black & Decker iron with Downy wrinkle release chamber Antiques Roadshow Furniture (Pulaski license)

What Were They Thinking? Harley Cake Decor

Hooters Airline

Maxim Haircolor for Men

Barbie Jewelry

Jaguar X

No shortage of examples

Brand Failures: The Truth about the 100 Biggest Branding Mistakes of All Time by Matt Haig

Successful Extensions Leverage Equity

PosiGoning Provides Framework to Explore Equity Extensions Target

•  Harley Davidson: Addressed target’s emoGonal idenGﬁcaGon needs to clothing, motor homes, temporary tatoos.

Frame of Reference (FOR)

•  Ralph Lauren: Extended RL’s Gmeless sense of style into other lifestyle categories such as linens, furniture, restaurants.

Point of Diﬀerence (POD)

•  BIC: Extended cheap disposability of its pens to razors.

Reasons to Believe (RTB)

•  Arm & Hammer: Extended baking soda rtb to toothpaste, detergent •  Hershey: Extended chocolate to milk products.

Source: Alice Tybout & Tim Calkins, Kellogg on Branding

Extending VerGcally •  Urge to take luxury or premium brand to booming value segment can be akracGve –  Tiﬀany bouGques –  Cadillac Cimarron

•  David Aaker suggests avoiding whenever possible, beker to use a subbrand or even beker, a totally new brand –  Old Navy (Gap) –  Boston Piano (Steinway)

Some Principles for Brand Extensions •  High equity brands stretch farther •  Akribute associaGons harder to stretch than abstract beneﬁts •  Successful extensions make future extensions easier •  Extensions need a reason for being – avoid confusing consumer by adding new brands if necessary

REVITALIZING BRANDS

When a Brand Loses Its Luster •  Return to roots to recapture lost sources of equity –  Neutralize negaGve associaGons –  Shore up posiGve associaGons

•  IdenGfy and establish new sources of equity •  Broaden ways to use the brand, use more of the brand when it is consumed, or use the brand in more ways •  Reintroduce to new generaGon of users •  Milk for proﬁt and reGre

Great Comebacks How did Triarc revitalize Snapple after its disastrous sale to Quaker?

Principles for Revitalizing •  Understand what happened •  Be willing to walk away •  Heritage and nostalgia are NOT a strategy for brand revitalizaGon •  Act pre-‐empGvely

BRANDS & CULTURE

Themes •  •  •  •  •  •  •  •  •

Power of (authenGc) storytelling to successful branding RelaGonship of self-‐idenGty to consumerism Dangers of overreliance on branding at expense of innovaGon How brands can leverage culture to go beyond tradiGonal markeGng Importance of historical perspecGve on brands RelaGonship of culture to brand success Ethical issues arising from gaps between product reality and brand image Can tradiGonal brand strategy tools make a brand great? Diﬃculty of staying culturally relevant over Gme 21

Branded Na)on: The Marke)ng of Megachurch, College, Inc. and Museumworld

“He argues that public companies and non-‐for profits both build their brands through telling stories and that a good markeGng plan is one with a memorable story (Where’s the Beef?) while an ineffecGve one is forgoken (Herb of Burger King). Twitchell goes on to explain that the purpose of the book is to examine the non-‐profit world to determine if story telling (brand building) has made it so that the product itself (church service or class) doesn’t actually provide value, while the brand name does.”

– DusGn Ruch 22

Obsessive Branding Disorder “Conley does an excellent job taking a closer look at the philosophical and social implicaGons under a branding-‐ heavy society. He asserts that managing an idenGty inherently implies a separaGon from that idenGty; “a brand is something to be controlled rather than any expression of authenGcity,” he concludes.” … Indeed, he urges all to apply reason and intellect to see a company’s brand illusion for what it is.

– Brian Weberman

Buying In

“EssenGally, Walker’s point is that we buy brands and product in order to tell a story about ourselves to other people. Moreover, the brands that we buy tell ourselves a story of who we are….I feel the best point made throughout the book is that there is no universal right way to create a brand. This is something that those new to the concepts of markeGng must understand. Many Gmes idenGGes of brand simply emerge due to the culture that chooses to idenGfy a a product or brand.” – Ryan O’Halloran

“CiGng Keech’s seminal work on cogniGve dissonance, (Walker) argues that onsumers are actually akempGng to tell themselves a consistent story of who they are. Consumers don’t buy to keep up with the Joneses as previously been thought. Instead we buy things in an akempt to construct ourselves a consistent story about who we are.” – Dan Sweet

Cul)ng of Brands “Atkin does an extraordinary job of showing the relaGonship between the building and management of cults and brand strategy. Although the two seem quite different, the tacGcs used by cult leaders can be effecGvely deployed by brand managers to build awareness and loyalty. Of course, these tacGcs can be used by public speakers, human resources professionals, and other occupaGons, but the connecGon that portrays the cult as a brand is what makes this percepGon unique. Members of a cult are fiercely loyal, and this is the characterisGc that brand managers crave.” – Corey Brei]elder

How Brands Become Icons

“Holt argues that the three tradiGonal theories of branding,

mindshare, emoGonal, and viral do not go far enough in their strategy to create an iconic brand. … Holt’s model is one that should be reviewed by managers working to create a truly iconic brand. He takes a stab at trying to explain how one can go from a good brand to a great brand. He focuses on the importance of myths , or stories, that a brand creates. The importance of the myth makes sense in historical perspecGve as we have osen used stories to express ourselves throughout history. He also interesGngly discusses the populist markets which are key in accepGng a myth. The populist market is similar to spotng an early trend, and idenGfying the group entwined in the trend. Osen the brand may be arGculaGng a feeling that the person I the group cannot arGculate themselves. Holt also notes the vastness between a posiGoning statement and the creaGve execuGons that result from them.” – Bridget Batstone

All Marketers Are Liars

“His asserGon in the Gtle of the book that ‘all marketers are liars’ is

not really what he means. What Seth is trying to convey is that marketers must create a story around their products and services that the consumer can ‘buy into’ and convince themselves of the lie that the brand will truly make them ﬁker, smarter, beker looking, more successful, etc. This may sound simple at the surface level, but there is a lot to it.” – Greg Lord

“Yes, consumers should be careful which story to believe but marketers also have the responsibility to tell authenGc stories….The book is impac]ul because he consistently emphasized the same point over and over again – markeGng is storytelling. He makes his point drawing from various stories by Starbucks, John Kerry, Blue Nile, etc. Whether it is coﬀee, a candidate, or diamonds, each brand shares the similarity of telling an authenGc story that ﬁts with consumers’ world view and something they can believe in.” – Anne Lin

Three Discussion QuesGons 1.  Is the story telling paradigm realisGc or useful as a brand strategy framework? What is the obligaGon of brand marketers to be ‘authenGc’? Do customers create the ‘lie’ or do marketers? –  All Marketers are Liars, Buying In 3.  Has the pracGce of brand markeGng been taken too far when it is applied to churches, museums, ciGes and ideas? What is the downside of branding and what is the marketers’ ethical obligaGon when pracGcing? •  Obsessive Branding Disorder, Branded NaGon 5.  Should brand strategies include a ‘cultural’ brief as well as a posiGoning? How should the importance of the culture be reﬂected in brand strategy? –  Cult Branding, How Brands Become Icons 28

For Wednesday: Complete online course evaluation Send electronic version of winning book reviews for ‘publication’ on the blog Check out Prophet’s web site www.prophet.com