Swot Analysis of Puma
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Brand Management
LSMS 2003
Prof : I. Schuiling
Structure
Introduction
Building brand equity
Launching the brand
Growth through brand extension
Building brand architecture
Managing brand portfolios
Handling name changes and brand transfers
VIII.
Brand turnaround and rejuvenation
Managing global brands
Financial valuation of brands
Introduction
A. BRAND
DEFINITION
Brands are everywhere
Brands have become a major player in modern society. They penetrate all spheres of our life: economic, social, cultural, sporting, even religion. They can be analyze through a number of perspectives: macroeconomics, microeconomics, sociology, psychology, anthropology, history, semiotics, philosophy,
This book tries to find how best to manage brands for profit. Since brands are now recognized as a part of companys capital, they should be exploited.
American Marketing association
A brand is a name, term, sign or symbol or design or combination of them intended to identify the goods or services of seller and to differentiate them from those of competition.
⇒ It is too restrictive!
Optimal brand definition
A brand is a name, a sign or symbol which serve to identify and differentiate a product versus other ones and that is registered in the minds of consumers as a set of tangible and intangible benefits. (A name that influences buyers en bref)
Tangible: benefit link to the product itself. Ex: Design, performance, innovation.
Intangible: the strength that the brand has is our mind. When you are using Apple product something you cant see or measure, Ex: part of a community, status, trendy.
⇒ We have a strong brand when we have tangible and intangible benefits.
⇒ When you look at different brands you have:
Different personalities, quality perceptions, attitudes toward the brand, different feelings from consumers Power of the brand is what they mean in the consumers mind. Ex: Puma, Addidas, Nike are competitor but have different personalities.
Other definition (Keller)
The classic definition of brand: “a brand is a set of mental associations, held by the consumer, which add to the perceived value of product or service” (Keller, 1998)
The associations should be UNIQUE (exclusivity), STRONG (saliency) and POSITIVE (desirable). !complète la definition du dessus!
You can have “negative” association, Ex: Costa.
A brand is more than a product
A brand is the added value given to a product
The idea is to create perceived difference among products.
The power of a brand resides in the mind of consumers
Ex: Mercedes (Important to understand the difference between the product, the tangible part, and the brand)
The worlds top brands?
Coca-Cola, IBM, Microsoft.
The value of the brand (financially) isnt included in the balance sheet and it should be!
Unilever is a company not a brand name.
The 7 strongest brand in Belgium, brand that are the best evaluated:
Belgacom 4. Mobistar 7. Spa
Proximus 5. Delhaize
Colruyt
6. Quick
When do we have brands?
Reduction of risk
Perceived risk
Brands
In fact when there is no risk, there is no brand
What type of risk perceived?
Economic (linked to the price)
Functional (linked to the performance)
Experiential or psychological (linked to our self-concept)
Social (linked to our social image)
Financial
Having a brand, reduce the risk.
Ex: teenagers => brand => reduce social risk
Need to create passion, engagement, attachment (“love brand, passion brands, emotional brands”)
No fans- No bran. Companies are creating community. Ex: pages for Fan on Facebook.
Example of LEGO:
1 million members
40 ambassadors (they have interaction with their fan).
1% of profit of new ideas: if consumers give new ideas that will ne launch.
Pharmaceutical industry: difficulty to create a Brand.
Industry of meat, fish also no clear brand (Product where we dont have any risk = commodities). Because difficult to differentiate, no certain risk to reduce (Brand: find a certain quality, guarantee).
A brand is an important contract between