PSU Global Brand Management - Alain Hutinel. 1 Welcome to GLOBAL BRAND MANAGEMENT To-day Goals – How we are going to work (syllabus) – Some rules Part I : Investigating the Brand « power »

PSU Global Brand Management - Alain Hutinel. 2 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

PSU Global Brand Management - Alain Hutinel. 3You… Special Topics/ Interest in Brands … Specific project Business actual situation …….. > let’s talk and imagine Your role : to build your own brand model so as to better anticipate what you think will happen

PSU Global Brand Management - Alain Hutinel. 4 Class materials Course Slides + on PSU/SBA - Faculty and Staff - Alain Hutinel website & course (to-morrow) CD-ROM Reference book : Lane Keller, « Strategic Brand Management » Also : « Brand Portfolio Management » by D.A. Aaker

PSU Global Brand Management - Alain Hutinel. 5 (some) Brand Management Websites PriceWaterhouse Nelson Sofres, Etudes, Panels, Piges …. ESOMAR Recherche MArketing magazine “The” site on Branding Brand research and survey company International. Brown.Adverising Institute of Professional Advertisers Brand Association consultant consultant for Brand Names search Consultants, Bern Schmitt (Columbia U.) HighCo brand Institute partly in English co-branding offers

PSU Global Brand Management - Alain Hutinel. 6 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°)

PSU Global Brand Management - Alain Hutinel. 7 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

PSU Global Brand Management - Alain Hutinel. 8 Requirements and grading Readings as directed 3 individual essays from readings 3 individual cases (powerpoint format only) 1 group brand audit & project

PSU Global Brand Management - Alain Hutinel. 9 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

PSU Global Brand Management - Alain Hutinel. 10 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

PSU Global Brand Management - Alain Hutinel. 11 TO-DAY Investigating, understanding the Brand Importance to the firm Defining the Brand The Brand System Defining the Brand roles Brand Power and Value

PSU Global Brand Management - Alain Hutinel. 12 « 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, Hellmann’s, SlimFast and Ben & Jerry on its plate. » Mukul Pandya, WSJ.

PSU Global Brand Management - Alain Hutinel. 13 Key trends affecting brand management … & marketing ! Consumption, societal & cultural multi- fragmentation & globalisition Consumption, societal & cultural multi- fragmentation & globalisition Less loyal / more « intelligent (?) » buyer Less loyal / more « intelligent (?) » buyer Self value-building consumption Self value-building consumption Search for emotions Search for emotions Multiplication of offers & chanels Interactive marketing technologies Interactive marketing technologies Markets saturation Markets saturation Multiplication of touchpoints/contacts Multiplication of touchpoints/contacts Loss of credibility of traditional media contacts Loss of credibility of traditional media contacts

PSU Global Brand Management - Alain Hutinel. 14 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)

PSU Global Brand Management - Alain Hutinel. 15 A Brand builds its Own world And that is a fantastic power !

PSU Global Brand Management - Alain Hutinel. 16 In this brand (!) new world, What IS a Brand and What DOES a Brand do? ?

PSU Global Brand Management - Alain Hutinel. 17 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 Think of how you became aware of them, why you bought them, why you prefer them, how you feel about them List them as they come to your mind 2 - List them as they come to your mind 3 - Chose one brand you are very familiar with : 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 ? 4 – Main characteristics of a world without Brands ?

PSU Global Brand Management - Alain Hutinel. 18 “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 ?

PSU Global Brand Management - Alain Hutinel. 19 Brand is an experience A brand is essentially a container for a costumer’s complete experience with the offer and the company. (Sergio Zyman)

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PSU Global Brand Management - Alain Hutinel. 21 What is a Brand (shortcut) ? Attributes BenefitsValues Culture User Personality

PSU Global Brand Management - Alain Hutinel. 22 The Brand as an Open System..Scope.Attributes.Uses.Quality/ Value.Functional Benefits Organization’s associations Personality Symbols Origin User Imagery Relationships with customers Self-expressive benefits Emotional benefits (Core) Offer (Tangible Products & Services) Codes/Tone Competition Skills Name Corporation Economy … Chanels, contacts … Tribes Cultures Groups …

PSU Global Brand Management - Alain Hutinel. 23 This Brand System interacts AS... A SOCIO-ECONOMIC AGENT 1).. A SOCIO-ECONOMIC AGENT A CORPORATE ASSET 2).. A CORPORATE ASSET A STRATEGIC MARKETING TOOL 3).. A STRATEGIC MARKETING TOOL A COMMUNICATING & SELLING AGENT 4).. A COMMUNICATING & SELLING AGENT

PSU Global Brand Management - Alain Hutinel. 24 THE BRAND AS A SOCIO-ECONOMIC AGENT PART OF EACH INDIVIDUAL’S AND SOCIETAL GROUPS ’ SET OF REFERENCES A POWERFUL SOCIAL DRIVER A GLOBAL CIMENT A VALUE ADDING ECONOMIC AGENT A VALUE ADDING ECONOMIC AGENT

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PSU Global Brand Management - Alain Hutinel. 26 Brand Strategic Role Brand Equity Cash flow booster Consumer Response Booster

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PSU Global Brand Management - Alain Hutinel. 28 THE BRAND AS A CORPORATE ASSET PROTECTED PROPERTY ( ) 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.

PSU Global Brand Management - Alain Hutinel. 29 Brand Asset Value Source : K.L.Keller

PSU Global Brand Management - Alain Hutinel. 30 BRAND EQUITY as a Percent of Firm Tangible Assets Industry Brand Equity Apparel 61 Tobacco 46 Food products 37 Chemicals 34 Electric machinery 22 Transportation equip. 20 Primary metals 1 Stone, glass, and clay 0

PSU Global Brand Management - Alain Hutinel. 31 Brand (Market) Performance Valuation DDB Pricing Studies Landor Power Index Interbrand Valuation model Y&R Brandasset Valuator Intangible Value Valuator Sometimes stock market value

PSU Global Brand Management - Alain Hutinel. 32 The Landor Power Index Power = strength Power = strength 2 synthetic measures Awareness Esteem 2 synthetic measures Awareness Esteem «Share of Mind» idea «Share of Mind» idea (cf. Share of Market Share of Voice, Share of Requirements....) Most influencing factor : brand perceived quality Most influencing factor : brand perceived quality need time need time

PSU Global Brand Management - Alain Hutinel. 33 Interbrand BRAND VALUE Attributes Leadership (25%) Market share, Awareness, Positioning, Competitor Profile Stability (15 %) Longevity Coherence Consistency, brand Equity, risks Market (10 %) What market, Volatility size Market dynamics Barriers Internationality (25%) Trend (10 %) LT erformance, Projected performance, Sensibility of Plans, competition reactivity Support (10 %) Consistency of message and spendings, Above/below the line Brand franchise Protection (5%) Trademark registration /registrability common law, litigations/disputes

PSU Global Brand Management - Alain Hutinel. 34 MB Interb.

PSU Global Brand Management - Alain Hutinel. 35 Y&R ’s « Brandasset Valuator » PowerGrid

PSU Global Brand Management - Alain Hutinel. 36 Heinz Ketchup

PSU Global Brand Management - Alain Hutinel. 37 THE BRAND AS A KEY STRATEGIC MARKETING TOOL MARKETING TOOL BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE * - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE Adaptable to changing environments and technologies 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

PSU Global Brand Management - Alain Hutinel. 38 The Brand Value Chain Value Stages Marketing programs Customer Mindset Market Performance Shareholder Value Value Multipliers Programs Quality Market Place & Competition Conditions Investor Sentiment

PSU Global Brand Management - Alain Hutinel. 39 The Leading Brands: 1925 and 1985 Product Leading Brand 1925 Current Position 1985 BaconSwift Leader BatteriesEvereadyLeader BiscuitsNabiscoLeader Breakfast cereal Kellogg Leader Canned fruitDel Monte Leader Chewing gumWrigley Leader ChocolatesHershey No. 2 FlourGold Medal Leader Mint candiesLife Savers Leader Paint Sherwin-Williams Leader Pipe tobaccoPrince Albert Leader RazorsGillette Leader Sewing machines Singer Leader ShirtsManhattan No. 5 ShorteningCrisco Leader SoapIvory Leader Soft drinksCoca-Cola Leader SoupCampbell Leader TeaLipton Leader TiresGoodyear Leader ToothpasteColgate No. 2

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PSU Global Brand Management - Alain Hutinel. 41 Building Brand Equity Brand Equity Equity (Name & Symbol) Value To Customer Info Processing Info Processing Confidence in BuyingConfidence in Buying Use SatisfactionUse Satisfaction Value To Firm Helps Programs Helps Programs Brand Loyalty Brand Loyalty PricesPrices Brand ExtensionsBrand Extensions Trade LeverageTrade Leverage CompetitiveCompetitive Advantage Advantage NameAwareness Perceived Quality Quality BrandAssociations OtherBrandAssets BrandLoyalty Preference

PSU Global Brand Management - Alain Hutinel. 42 P & G - Mr Propre Mr Clean

PSU Global Brand Management - Alain Hutinel. 43 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

PSU Global Brand Management - Alain Hutinel. 44 The best Performances last longest.

PSU Global Brand Management - Alain Hutinel. 45 From Traditional Marketing Functions of the Brand Name … Identification Identification Expresses the offer and is easily seen Practicality Practicality Saves times/energy thru repeat purchase & renewed satisfaction Guarantee of quality Guarantee of quality Has reputation Has reputation

PSU Global Brand Management - Alain Hutinel. 46 … to a powerful societal system that … sells … ie : … ie : exerts influences in the market place exerts influences in the market place changes consumers’ wants and needs changes consumers’ wants and needs sets ideals and standards sets ideals and standards helps/facilitates choice helps/facilitates choice provides purchase reassurance provides purchase reassurance reduces after-choice dissonance reduces after-choice dissonance……

PSU Global Brand Management - Alain Hutinel. 47 …. gives meanings and identity to what we use & buy gives meanings and identity to what we use & buy helps us build our self-identity 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 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 creates a longlasting relationship with « consumers », at least with customers

PSU Global Brand Management - Alain Hutinel. 48 So, a modern brand is A « persona » that overlays and includes the physical products/services A « persona » that overlays and includes the physical products/services the sum of fundamental values and attributes ascribed to it by people 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. the entity that the consumers construct from the products’ meanings, symbols and images that they perceive as defining the brand.

PSU Global Brand Management - Alain Hutinel. 49 Evian, approved spring of youth for your body. Evian Water brings health to all growing bodies

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PSU Global Brand Management - Alain Hutinel. 52 US - Evian. l’Original. Approved by your body as a source of youth.

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PSU Global Brand Management - Alain Hutinel. 54 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 – …

PSU Global Brand Management - Alain Hutinel. 55 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

PSU Global Brand Management - Alain Hutinel. 56 Nestlé Branding Tree

PSU Global Brand Management - Alain Hutinel. 57 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 LOCAL BRANDS Sara Lee Brand Hierarchy

PSU Global Brand Management - Alain Hutinel. 58 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