Essay About Strategic Value Of A Brand And Strategies Of Porter

Brand Management
Brand ManagementSKUSSession 1 : The strategic value of a brand/ Identify – PositioningWhat is a brand? The brand is a name, a term, a sign, a drawing or any combination of these elements which identify the goods or the services of a company and differenciate them from the competition. Differentiation brand assets, strength, and value:From Awareness to Financial Value:Brand assets: awareness, reputation, perceived personality, brand values, customer imagery, brand preference, patentsBrand value: net cash flow attributable to the brand after paying the cost of capital invested to produce and run the business and the cost of marketing Brand strength: market share, penetration, growth, loyalty rates, premiumness, power towards distributionBrand Versus product: A good product is nothing without a strong brand (bio → activia)A strong brand is nothing without a good product (bic perfume)Brand vs corporate brand:Make company actions, values and missions more salient and diffuse specific added valuesDefend the company’s global reputation: Emotional appeal (trust, admiration, respect): MacDonald Product and services (quality, innovation): PhilipsVision and leadership:  DANONEWorkplace quality (well managed, employee talent)Financial performance: VWSocial responsibilityThe brand, a symbol for the consumers:A guarantee function → NestléReduces the riskQuality signalSocial function → AppleCreate symbolic associationsIdentificationSocial representation Affective function → NiveaCreates an intense and emotional relationshipReference function → AdidasIdentification of the productNew consumers easier to findThe brand expressionThe brand signalsThe productThe nameThe logoThe signatureThe characterThe packagingThe web siteThe communicationName (Evian)Packaging, design (Extreme with the ice cream)GraphicsEmblems of brand (logotype, jingle, symbol, signature) → Bird from twitter, squirrel from caisse d’épargneBrand name: TypesQualitiesPatronymic → MichelinInitials → BMWGeneric → FrigidaireNo meaning → PringlesPromise → Weight WatchersShort → BelUnwanted connotations → SuzeInternational → WhirlpoolAvailability and protection → AppleMake the positioning easy to understand → CocaBrand awareness:Top of mind: quoted in the first oneSpontaneous: in midGlobal: recognizedConsumer pathway:Awareness: What does it do for me?Drive awareness of basic benefit of brand/product. A solution to a need, want or problemInvolvement: Is it for me? Descriptive info to drive association and show relevance to consumer’s valuesActive consideration: Which one?Provide discriminating information to help consumer choose between alternativesPurchase intention: This oneEnsure that once consumer has chosen that the products are not switchedConsumption: This is just what I wantedEnsure that consumer expectation is met. Help consumer maximize experienceRelationship Building: They care about meDemonstrate understanding of emotional contract with consumer. Over deliverAdvocacy: These are great you should get oneProvide information and excuses for consumer to advocate brandTo measure brand equity:Brand awarenessBrand personality, concept, positioning, precise and distinct imageSigns of recognition by the consumerBrand authority, esteem, perceived status, consumer loyaltyThe 3 strategies of Porter:Differentiation: Specify and value added + Total marketStrategy cost/ volume: Cost and quality + Total MarketSpecialization: Specific segment Strategies: Withdrawal strategy (or back to the original category)  Upholding strategy (weak adaptation)  Conquest strategy (new segments)  Extensive strategy (target development)  Sophistication strategy (upper range)  Imitation strategy (me too product), or differentiation  Innovation strategy (invention)  Distribution strategy (selective, exclusive)  Challenger strategy, follower, leader  Brand Identity, the source of brand positing:[pic 1]Brand identity: the vision, the key beliefs, and its core valuesRelationship between brand identity and corporate identityCorporate’s identity transmits its values to the brand The value and the culture make the brand identity The identity prism of a brand: Brand positioning: the main difference creating preference in a specific market for a chosen target, at a specific time for its products. The thing which makes what to whom with whatBrand image: A synthesis and perception made by the public of all the brand messagesSpontaneous image, latent images, from products and adMental representation / Personal and subjective/ Selective and simplifying/ StableThe central kernel of the brand: The kernel includes fundamental associations which constitute the identity of the brand. What must remain identical through countries, time and products/services . The peripheric system involves other associations which are less important