Brand Management

Welcome to GLOBAL BRAND MANAGEMENT
To-day
Goals
How we are going to work (syllabus)
Some rules
Part I : Investigating the Brand power

PSU - 2006 - Global Brand Management - Alain Hutinel.
Me

Alain Hutinel Education

ESSEC MBA Keller Graduate School of Business (Indiana University)
Experience
20 years in FMCG Marketing, Colgate Palmolive & Quaker Oats 2 years MD of an IT Network Cy 15 years of Consulting and Teaching
Major interests . Teaching internationally Marketing Communications and Brand Management . Discovering new ways of marketing
Office : 260C Tu, W & Th. 503-725-3732
hutinel@pdx.edu
Special Topics/ Interest in Brands Specific project Business actual situation ..

> lets talk and imagine
You
Your role : to build your own brand model so as to better anticipate what you think will happen
Class materials
Course Slides + on PSU/SBA - Faculty and Staff - Alain Hutinel website & course e-mail (to-morrow) CD-ROM Reference book : Lane Keller, Strategic Brand Management Also : Brand Portfolio Management by D.A. Aaker
(some) Brand Management Websites www.pwcglobal.com/fr/fra www.tns.com www.esomar.nl www.brandweek.com www.brandchannel.com www.brandfinance.com www.milwardbrown.com www.future.sri.com www.intelliquest.com www.accenture.com www.ipa.com www.prodimarques.com www.labelmark.com www.nomen.com www.mckinseyquarterly.com www.exmarketing.com www.bec-institute.com http://www.cobranding.com www.globalbrand.org
PriceWaterhouse Taylor Nelson Sofres, Etudes, Panels, Piges . ESOMAR Recherche MArketing US magazine Interbrand The site on Branding. Brand research and survey company Research International. Millward Brown.Adverising Accenture UK Institute of Professional Advertisers French Brand Association French consultant French consultant for Brand Names search McKinsey Consultants, Bern Schmitt (Columbia U.) HighCo brand Institute partly in English co-branding offers
What will be evaluated
Importance vs Completeness Capacity to judge and build own opinion (managerial aptitudes) Capacity to anticipate and innovate (d) Capacity to evaluate quality of marketing activities (d)
YOUR ROLES AND RESPONSIBILITIES

1. To build your own brand model 2. To anticipate what you think should happen 3. Individually, to do the required homework and participate in class debate 4. To actively contribute to group work
Requirements and grading
Readings as directed 3 individual essays from readings 3 individual cases (powerpoint format only) 1 group brand audit & project
Typical Reading/Essay format
The most important/new ideas/concepts retained by the writer(s) Critique/discussion on these ideas, on methodology, argumentation etc . Give your opinion Say what might happen 5 to 10 years from now Provoque class debate
How you will apply in your brand audit 10 minutes = no more than 6/7 light slides All work in powerpoint format
Course main Topics
Brand strategic role The Brand system Valuating the Brand Brand Equity Brand Identity
Managing the Brand Communicative scope Managing Brand Architecture Brand portfolio Issues Cross-cultural Branding
TO-DAY
Investigating,
understanding the Brand Importance to the firm Defining the Brand The Brand System Defining the Brand roles Brand Power and Value
Ultimately, Brands are all about trust

the reason consumers flock to some brands and ignore others is that behind the brand stands an unspoken promise of value. That is why brands are becoming even more important drivers of growth. That is also why Unilever wants Knorr, Skippy, Hellmanns, SlimFast and Ben & Jerry on its plate. Mukul Pandya, WSJ.
PSU - 2006 - Global Brand Management - Alain Hutinel. 12
Consumption, societal & cultural multifragmentation & globalisition Less loyal / more intelligent (?) buyer Self value-building consumption Search for emotions Multiplication of offers & chanels Interactive marketing technologies Markets saturation Multiplication of touchpoints/contacts Loss of credibility of traditional media PSU - 2006 - Global Brand contacts Management - Alain Hutinel.
Key trends affecting brand management & marketing !
From USP to HSP
USP = Unique Selling Proposition ESP = Emotional Selling Proposition OSP = Organizational Selling Proposition BSP = Brand Selling Proposition MSP= Me Selling Proposition HSP =Holistic Selling Proposition
(Martin Lindstrom)
A Brand builds its Own world
And that is a fantastic power !
In this brand (!) new world, What IS a Brand and What DOES a Brand do?
16
Think of Brands in your own life
1 - Think of how you became aware of them, why you bought them, why you prefer them, how you feel about them ... 2 - List them as they come to your mind 3 - Chose one brand you are very familiar with : . What does this Brand do for you? . What does it MEAN to you? . How do you relate to it ? 4 Main characteristics of a world without Brands ?
What is the best

Who makes the best . Automobile ? Do you own one ? Have you ever owned one ? Have you ever driven one ? Do you know anybody who owns one ? How do you know .. It is the best ?
Brand is an experience
A brand is essentially a container for a costumers complete experience with the offer and the company. (Sergio Zyman)
What is a Brand (shortcut) ?

User
Culture Personality
Attributes Benefits
Values
The Brand as an Open System.

Chanels, contacts Relationships with customers Competition
Corporation Economy
Personality .Scope .Attributes Codes/Tone .Uses Skills (Core) Offer .Quality/ (Tangible Products & Symbols Services) Value Origin .Functional User Imagery Self-expressive Benefits benefits Name Tribes Emotional benefits Cultures PSU - 2006 - Global Brand Groups Management - Alain Hutinel.
Organizations associations
This Brand System interacts AS ...

1) .. A SOCIO-ECONOMIC AGENT
2) .. A CORPORATE ASSET 3) .. A STRATEGIC MARKETING TOOL 4) .. A COMMUNICATING & SELLING AGENT
THE BRAND AS A SOCIO-ECONOMIC AGENT
PART OF EACH INDIVIDUALS AND SOCIETAL

GROUPS SET OF REFERENCES A POWERFUL SOCIAL DRIVER A GLOBAL CIMENT A VALUE ADDING ECONOMIC AGENT
Brand Strategic Role

Brand Equity
Cash flow booster

Consumer Response Booster
THE BRAND AS A CORPORATE ASSET

A PROTECTED PROPERTY (owner's right to use) BOOK VALUE, GOODWILL. ASSET that can be
sold and bought
MARKETING NON TANGIBLE ASSET
precisely measurable and valuable (when brand is on sale) : STRENGTH , LEADERSHIP & EQUITY, ie capacity to justify price.
Brand Asset Value
Source : K.L.Keller
BRAND EQUITY
as a Percent of Firm Tangible Assets
Industry
Apparel Tobacco
Brand Equity
61 46
Food products Chemicals

Electric machinery
37 34
22
Transportation equip.
Primary metals Stone, glass, and clay
20
1 0
Brand (Market) Performance Valuation

DDB Pricing Studies Landor Power Index Interbrand Valuation model Y&R Brandasset Valuator Intangible Value Valuator Sometimes stock market value
The Landor Power Index

Power = strength 2 synthetic measures Awareness Esteem Share of Mind idea (cf. Share of Market Share of Voice, Share of Requirements ....)
Most influencing factor : brand perceived quality need time
Interbrand BRAND VALUE Attributes

Leadership (25%) Trend (10 %)
Market share, Awareness, Positioning, Competitor Profile
Longevity Coherence Consistency, brand Equity, risks
LT erformance, Projected performance, Sensibility of Plans, competition reactivity
Consistency of message and spendings, Above/below the line Brand franchise Trademark registration /registrability common law, litigations/disputes
Stability (15 %)
Support (10 %)
Market (10 %)
Protection (5%)
Internationality (25%)
What market, Volatility size Market dynamics Barriers

Interb.
MB
Interbrand Ranking and Ratio of Brand value to Firm Market Value 2002 1995 1999 2001 Interbrand value SM % B Rank $ bns Rank $ bns Rank $ bns Rank $ bns $ bns /SM 1 Coca-Cola 39 Coca-Cola84 Coca-Cola 69 Coca-Cola 70 138 51 2 Marlboro 39 Microsoft 57 Microsoft 65 Microsoft 64 276 23 3 IBM 17 IBM 44 IBM 53 IBM 51 138 37 4 Motorola 15 GE 34 GE 42 GE 41 309 13 5 HP 13 Ford 32 Nokia 35 Intel 31 185 17 6 Microsoft 12 Disney 32 Intel 35 Nokia 30 68 44 7 Kodak 12 Intel 30 Disney 33 Disney 29 47 62 8 Budweiser 11 McDonald's Ford 26 30 McDonald's 26 38 68 9 Kellogg's 11 AT&T 24 McDonald's 25 Marlboro 24 10 Nescaf 10 Marlboro 21 AT&T 23 Mercedes 21 11 Intel 10 Nokia 21 Marlboro 22 Ford 20 32 63 12 Gillette 10 Mercedes 18 Mercedes 22 Toyota 20 100 20 13 Pepsi 8 Nescaf 18 Citibank 19 Citibank 18 223 8 14 GE 7 HP 17 Toyota 19 HP 17 58 29 15 Levi's 7 Gillette 16 HP 18 Amex 16 57 28 16 Frito-Lay 7 Kodak 15 Cisco 17 Cisco 16 116 14 17 Compaq 7 Amex 17 AT&T 16 43 37 18 Bacardi 7 Gillette 15 Honda 15 42 36 19 Campbells 7 Merryll Lynch 15 Gillette 15 38 39 20 Pampers 6 BMW 11 Sony 15 BMW 14 29 48 21 Honda 15 Sony 14 53 26 22 BMW 14 Nescafe 13 23 Nescaf 13 Oracle 12 44 27 24 Compaq 12 Budweiser 11 45 24 25 Oracle 12 Merrill Lynch 11 35 31 26 Budweiser 11 Morgan St. 11 50 22 27 Kodak 11 Compaq 10 28 Merck 10 pfizer 10 217 5 29 Nike 8 Nintendo 9 J.P. Morgan 10 72 14 30 Pfizer 9 Kodak 10 10 100 31 Gap 9 Dell 9 70 13 32 Dell 8 Nintendo 9 20 45 33 Golman S. 8 Mercx 9 130 7 34 Nike 8 Samsung 8 35 VW 7 Nike 8 36 Ericsson 7 Gap 7 13 54 37 Apple 4 Heinz 7 Heinz 7 38 Levi's 7 VW 7 21 33 39 Kellog's 7 Goldman S. 7 36 19 40 MTV 7 Kellog's 7 15 47 41 Canon 7 Louis Vui. 7 26 27 42 Samsung 6 SAP 7 33 21 43 SAP 6 Canon 7 34 21 44 Ikea 4 Pepsi 6 Ikea 7 45 Xerox 6 Pepsi 6 92 7 46 Ikea 6 HD 6 16 38 47 Pizza Hut 6 MTV 6 48 HD 6 Pizza Hut 6 49 Apple 5 KFC 5 50 Gucci 5 Apple 5 51 KFC 5 Xerox 5 34 #### 52 Ralph Lauren 2 Gucci 5 24 #### 53 Accenture 5 54 L'Oreal 5 48 10 55 Kleenex 5 56 Sun 5 22 23 57 Wrigley's 5
2003 RANK Coca-Cola Microsoft IBM GE Intel Nokia Disney McDonalds Marlboro Mercedes Toyota HP Citibank Ford Amex Gillette Cisco Honda BMW Sony Nescafe Budweiser Pepsi Oracle Samsung Morgan St. Merrill lynch Pfizer Dell Merck JPMorgan nintendo Nike Kodak SAP Gap HSBC Kellogg's Canon Heinz Goldman S. VW Ikea HD Louis Vui. MTV L'Oreal Xerox KFC Apple Pizza Hut Accenture Gucci Kleenex Wrigleys Colgate Avon $bns 71 65 52 42 31 29 28 25 22 21 21 20 19 17 17 16 16 16 15 13 12 12 12 11 11 11 11 11 10 9 9 8 8 8 8 8 8 7 7 7 7 7 7 7 7 6 6 6 6 6 5 5 5 5 5 5 5
2004 RANK Coca-Cola Microsoft IBM GE Intel Disney McDonald's Nokia Toyota Marlboro Mercedes HP Citibank Amex Gillette Cisco BMW Honda Ford Sony Samsung pepsi Nescafe Budweiser Dell Merrill Lynch Morgan St. Oracle Pfizer J.P. Morgan Nike Merck HSBC SAP Canon kellogg's Goldman S. Gap Siemens Ikea HD Heinz Apple Louis Vui. UBS Nintendo MTV VW L'Oreal Accenture Xerox Wrigley's Kodak KFC Pizza Hut Colgate Kleenex $bns 67 61 54 44 33 27 25 24 23 22 21 21 20 18 17 16 16 15 14 13 12 12 12 12 12 11.5 11.5 11 10.6 10 9.3 8.8 8.7 8.3 8.1 8 8 7.9 7.5 7.2 7.1 7 6.9 6.6 6.5 6.5 6.5 6.4 5.9 5.8 5.7 5.4 5.2 5.1 5 5 4.9
Y&R s Brandasset Valuator PowerGrid
Emerging potential
Leadership
Brand Strength
DREK
DR
DREK
Eroding Potential
New/unfocused
EK
D R
EK
Brand Stature
Differenciation Relevance Esteem Knowledge

Monash University MBA - January 2002 - Prof. A. Hutinel 26
Heinz Ketchup - 2000
THE BRAND AS A KEY STRATEGIC MARKETING TOOL
* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE
Adaptable to changing environments and technologies
* SUPPORT OF LONG-TERM TIES WITH PEOPLE * ALLOWS LOWER COST for NEW ENTRIES * UNIQUE SPOKESMAN TO ALL PUBLICS
* JUSTIFIES HIGHER PRICE & MARGINS

The Brand Value Chain

Value Stages Marketing programs Customer Mindset Market Performance Shareholder Value Value Multipliers Programs Quality Market Place & Competition Conditions Investor Sentiment
The Leading Brands: 1925 and 1985

Product
Bacon Batteries Biscuits Breakfast cereal Canned fruit Chewing gum Chocolates Flour Mint candies Paint Pipe tobacco Razors Sewing machines Shirts Shortening Soap Soft drinks Soup Tea Tires Toothpaste
Leading Brand 1925
Current Position 1985

Leader Leader Leader Leader Leader Leader No. 2 Leader Leader Leader Leader Leader Leader No. 5 Leader Leader Leader Leader Leader Leader No. 2
Swift Eveready Nabisco Kellogg Del Monte Wrigley Hershey Gold Medal Life Savers Sherwin-Williams Prince Albert Gillette Singer Manhattan Crisco Ivory Coca-Cola Campbell Lipton PSU - 2006 - Global Brand Goodyear Management - Alain Hutinel. Colgate
BRAND EQUITY & MARKETING ASSETS
RATE OF LOYALTY CAPACITY TO BUILD IT

LEVEL AND SCOPE OF AWARENESS
LEVEL & DISTINCTIVENESS OF PERCEIVED QUALITY

MEASURED STRENGTH OF IMAGE AND IDENTITY
UNIQUENESS OF PERCEIVED POSITIONNING

PREFERENCE POWER OF PERCEIVED BENEFITS
Building Brand Equity

Name Awareness
Brand Loyalty Perceived Brand Preference Quality Associations Other Brand Brand Assets Equity Value To Firm (Name & Helps Programs Symbol)
Brand Loyalty Prices Brand Extensions Trade Leverage Competitive Advantage
Value To Customer
Info Processing Confidence in Buying Use Satisfaction
P & G - Mr Propre Mr Clean
THE BRAND AS A COMMUNICATING & SELLING AGENT

* A RELATIONSHIP ACTOR/BUILDER * AN INFLUENCER * IT GIVES MEANINGS TO PRODUCTS/SERVICES ... * ... AND A CREATOR OF NEW WORLDS
The best Performances last longest.

From Traditional Marketing Functions of the Brand Name

Identification Expresses the offer and is easily seen Practicality Saves times/energy thru repeat purchase & renewed satisfaction Guarantee of quality Has reputation
to a powerful societal system that sells

ie : exerts influences in the market place changes consumers wants and needs sets ideals and standards helps/facilitates choice provides purchase reassurance reduces after-choice dissonance
.
gives meanings and identity to what we use & buy helps us build our self-identity provides a symbolic language through which we can express ourselves in society and be recognized and understood by others creates a longlasting relationship with consumers , at least with customers
So, a modern brand is

A persona that overlays and includes the physical products/services the sum of fundamental values and attributes ascribed to it by people the entity that the consumers construct from the products meanings, symbols and images that they perceive as defining the brand.
Evian Water brings health to all growing bodies
PSU 2006 - Global Brand Evian, approved spring -of youth for your body. Management - Alain Hutinel.
US - Evian. lOriginal. Approved by your body as a source of youth.
Many different types of brands ?

B2B B2C Web Trade Local Regional National International Worlwide (meta)
Corporate Commercial Non-business (?)
Countries
Official bodies Charity org.
Politics/Polticians

Nestle Branding Tree
7500 Local Brands

Solis, Texicana, Rocky
140 Regional Brands

Contadina, Stouffers, Herta, Vittel
45 Worldwide strategic Brands

KitKat, Polo, Baci, After Eight, Coffee-Mate
10 worldwide Corporate Brands

Nestle, Carnation, Maggi, Buitoni, Perrier
Nestl Branding Tree
SARA LEE BRANDS
25,000 brands registered worldwide, 80% in use. Sara Lee is eliminating R&D & Production to focus on brand development
GLOBAL REGINAL
Sara Lee Brand Hierarchy
LOCAL BRANDS
From Traditional to Experiential Branding

From Brands as identifiers Names, logos, slogans build awareness and image
TO Brands as experience providers Names, logos, slogans, events, customer contacts which build sensory, affective, creative relations and ways of being (lifestyles) with the brands

Brand Management

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Brand Management

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Welcome to GLOBAL BRAND MANAGEMENT

Part I : Investigating the Brand power

Alain Hutinel Education

ESSEC MBA Keller Graduate School of Business (Indiana University)

Office : 260C Tu, W & Th. 503-725-3732

Special Topics/ Interest in Brands Specific project Business actual situation ..

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

What will be evaluated

PSU - 2006 - Global Brand Management - Alain Hutinel.

YOUR ROLES AND RESPONSIBILITIES

Requirements and grading

PSU - 2006 - Global Brand Management - Alain Hutinel.

Typical Reading/Essay format

PSU - 2006 - Global Brand Management - Alain Hutinel.

Course main Topics

PSU - 2006 - Global Brand Management - Alain Hutinel.

Ultimately, Brands are all about trust

Key trends affecting brand management & marketing !

From USP to HSP

A Brand builds its Own world

And that is a fantastic power !

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

Think of Brands in your own life

What is the best

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

What is a Brand (shortcut) ?

The Brand as an Open System.

This Brand System interacts AS ...

THE BRAND AS A SOCIO-ECONOMIC AGENT

PART OF EACH INDIVIDUALS AND SOCIETAL

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

Brand Strategic Role

Cash flow booster

Consumer Response Booster

PSU - 2006 - Global Brand Management - Alain Hutinel.

THE BRAND AS A CORPORATE ASSET

sold and bought

MARKETING NON TANGIBLE ASSET

Brand Asset Value

PSU - 2006 - Global Brand Management - Alain Hutinel.

Food products Chemicals

PSU - 2006 - Global Brand Management - Alain Hutinel.

Brand (Market) Performance Valuation

PSU - 2006 - Global Brand Management - Alain Hutinel.

The Landor Power Index

Most influencing factor : brand perceived quality need time

PSU - 2006 - Global Brand Management - Alain Hutinel.

Interbrand BRAND VALUE Attributes

What market, Volatility size Market dynamics Barriers

PSU - 2006 - Global Brand Management - Alain Hutinel.

Y&R s Brandasset Valuator PowerGrid

Differenciation Relevance Esteem Knowledge

PSU - 2006 - Global Brand Management - Alain Hutinel.

Heinz Ketchup - 2000

PSU - 2006 - Global Brand Management - Alain Hutinel.

THE BRAND AS A KEY STRATEGIC MARKETING TOOL

* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE