RULES OF BRAND MANAGEMENT : 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM RULES OF BRAND MANAGEMENT
BRANDING : TRANSFORMING THE PRODUCT CATEGORY : BRANDING : TRANSFORMING THE PRODUCT CATEGORY Brands are the direct consequence of the strategy of market segmentation and product differentiation
Branding is not always about what is on top or outside, but also refers to what is within the product
Hence the product or service enriched by branding must stand out well to be spotted by the potential buyer and to reap the benefits of it’s strategy
A delabelled brand becomes worthless when it no longer carries a brand name. However, it is still worth more than a counterfeit, because the invisible brand prevails 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BRANDING : TRANSFORMING THE PRODUCT CATEGORY : BRANDING : TRANSFORMING THE PRODUCT CATEGORY The fundamental task of a brand is to transform the product category
It organises the market, drives business through a vision of what the category should become
Transforming the category involves giving the product a separate identity, defined and epitomised by these attributes
Going from bulk to packaging would be an initial step in branding
The product has to be not just shown, it has to be “shown off” 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BRAND : A LONG-TERM VISION : BRAND : A LONG-TERM VISION Major brands hold certain positions within product categories which energise the brand and match the brand concepts with it’s ideals, thus justifying existence
Identifying brand purpose is essential because it helps the brand to draw energy from the niche it occupies in the market
If the brand is not driven by an intense internal necessity, it would not carry the potential to become a leading brand 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BRAND : A LONG-TERM VISION : BRAND : A LONG-TERM VISION 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM Brand Vision & Purpose Brand Values Brand Personality Strategic Common Traits Typical Brand Actions Prod Z Prod B Prod A Outside of Brand Territory
CONSTANT RENEWAL OF BRAND DIFFERENCE : CONSTANT RENEWAL OF BRAND DIFFERENCE Any brand innovation generates plagiarism
The role of a brand name is to protect the innovation by creating a new segment
Brands guide a creative process, yielding a new product today and newer products further on
Products come to life, live and disappear, but brands endure. This permanence is what gives a brand it’s meaning, purpose, content and attributes 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BRAND : A LIVING MEMORY : BRAND : A LIVING MEMORY The spirit of a brand can be judged through it’s advertising and products
In advertising the last message seen or heard is the one that is recalled while the first actions and message of a brand leave the deepest impressions
A brand is the memory and the future of it’s products
Customer loyalty is created by respecting the brand features that initially seduced the buyers and hence brands must stay true to themselves
A brand is not a static reality. It adapts and changes in technology and consumer behavior to remain up-to-date 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BRANDS ENDOW PRODUCTS WITH MEANING : BRANDS ENDOW PRODUCTS WITH MEANING While products are mute, brands give them meaning and purpose indicating how a product should be read
A brand is a prism helping us to decipher products by defining what and how much to expect from a product bearing it’s name
Consumers do not evaluate innovations in an isolated manner but in relation to a specific brand
Brands should respect the contract that has attracted customers and made them successful
A brand has to assume all it’s implications and fulfill it’s promises 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BRAND : A CONTRACT : BRAND : A CONTRACT By creating satisfaction and loyalty, the brand is forced to fulfill the quasi-contract binding it to the market and consumer
In return, the market views the brand’s new and pending products favorably, resulting in a mutual commitment
A brand is to be judged over the long term
The brand contract is economic, not legal
Brands do not testify that a product meets a set of characteristics, but become a part of the characteristics through repeated and consistent experiences 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BRAND : A CONTRACT : BRAND : A CONTRACT A brand has to :
Closely monitor needs and expectations of potential buyers through market research
React to technical and technological progress to create a competitive edge
Provide product volume and quality to ensure repeat purchases
Deliver products to intermediaries consistently and as per requirements with respect to delivery, packaging and quality
Give meaning to the product and communicate with the target segment through advertising
A brand’s slogan and signature emphasise the brand contract 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
LUXURY BRANDS : LUXURY BRANDS Luxury objects: Those whose price-quality relationship is the highest in the market
A McKinsey report defines luxury brands as “those which have been able to constantly justify a high price, significantly higher than the price of products with comparable tangible functions”
Luxury brands externalise all of their signs, the brand signature must be seen and recognised worldwide
They provide references of good taste
They provide extra pleasure and flatter all senses
Luxury relates to two things:
The monetary capacity to pay the price of quality
The capability to appreciate the object’s artistic, creative and sensous dimensions, beyond mere practicality 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
LUXURY BRANDS : LUXURY BRANDS 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM The griffe The Upper-range brand The mass brand Pure creation, unique work, materialised perfection Small series, hand made work, fine craftsmanship Series, highest quality in the company Mass series, cost pressure, the spiral of quality Money Aura The luxury brand
PRINCIPLES OF LUXURY BRAND MANAGEMENT : PRINCIPLES OF LUXURY BRAND MANAGEMENT Basic principles are:
Protecting clients from non-clients, by creating a no-mix area or creating entry barriers. This is done through pricing and selective distribution.
Luxury brands must be known and desired by all but accessible to and consumed by the priviledged few
The modern luxury brand must belong to those who rule the world today
Luxury brands perpetuate an exceptionally high level of quality and service. luxury defines the ideal degree of personalisation and sublimation of a given object against which the more basic brands measure themselves 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BRAND AWARENESS AND DESIRE : BRAND AWARENESS AND DESIRE Those who know a brand are divided into buyers and dreamers, leading to four situations or customer types:
Buyers who still dream of the brand are “addicts” and should be encouraged and rewarded for their loyalty
Buyers who no longer dream of the brand are “blasé”- saturated. Their desire must be revived
Non-buyers who dream of the brand but do not actually buy. They need to be encouraged either through an appropriate price policy or wider distribution
The non-buyers who do not dream of the brand, are indifferent and off-target 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BUILDING CUSTOMER RELATIONSHIPS : BUILDING CUSTOMER RELATIONSHIPS Extends beyond a single transaction
Also called as CRM, focusing on establishing a long-term, multi-transaction relationship, with each trusting the other to deal fairly and reliably
Enables an exchange of information, giving insights into customer needs and wants
This helps in increasing customer satisfaction. 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BUILDING CUSTOMER RELATIONSHIPS : BUILDING CUSTOMER RELATIONSHIPS Berry and Parsuraman identified three customer relationship building approaches:
Financial Benefits: frequent flier program, loyalty cards
Social Benefits: learning individual needs and individualising service ad contact
Structural Ties: Company supplies customers with special equipment or tools to interact better with the company 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
BRAND SUCCESS : BRAND SUCCESS Quality product or Service experience
First-mover Advantage
Unique positioning Concept : USP
Strong Communications Program: advertising, promotions, awareness
Time and Consistency 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM
CASE STUDY-BEN SHERMAN : CASE STUDY-BEN SHERMAN Questions
1. What is meant by a market segment?
2. Describe the key elements of the marketing mix. Explain why it is important to have a balance between these elements.
3. Which pricing strategies do you think Ben Sherman applies in its marketing mix?
4. Which of the distribution strategies Ben Sherman uses would give it best returns and why? 1/14/2011 CONTACT FOR MANAGMENT AND PUBLIC ADMINISTRATION CLASSES AT (AIABUZAFAR@GMAIL.COM..AND AT 08873628595/SKYPE:ABU.ZAFAR.IMAM