HED 460 Everyone brands Manufacturers Retailers Private Store Wholesalers Services Malls

HED 460 What is a brand? A name A symbol A product A store A promise the consumer can trust A key asset

HED 460 Why Consumers use Brands

HED 460 Brand as asset Brands have equity perceived to have value beyond what products/services/stores they are attached to produce in sales and profits Brands can be more lasting than assets of factories, warehouses, stores Brands may appreciate rather than depreciate Brands are portable

HED 460 Measuring brand equity Value stockholders place on a brand Consistently deliver on their promise The Gap Home Depot Amazon.com Market Share Penetration Lifetime value of customer

HED 460 Company performance

HED 460 What threatens brand equity? Low or inconsistent quality Michelob (Where you’re going, it’s Michelob) Extending into inappropriate channels Lack of innovation Not differentiating Not meeting consumer expectations “every point of customer contact”

HED 460 Planning Brand Strategy Know your core business Develop 3 interrelated strategies Communicate brand strategies

HED Positioning strategy The niche a brand occupies in consumers’ minds Maintain parity with competitors AND differentiate Must define 3 things target audience competitive frame of reference meaningful differentiation point

HED 460 Motel 6 positioning For frugal people, Motel 6 is a comfortable night’s stay at the lowest price of any national chain. Target audience Competitive frame of reference Meaningful Differentiation point

HED 460 Develop positioning strategy For (target audience), your brand is a (competitive frame of reference) that provides (meaningful differentiation point). Is it a brand? Not just a store name.

HED 460 Positioning examples Product superiority, maintain service Mercedes-Benz, Sony Excel in service, hold own in quality Nordstrom, Saturn Superior use of user imagery, adequate or strong performance Calvin Klein, Harley Davidson

HED Create Brand Personality Strategy Set of human traits it portrays in its relationship with its customers Character or personality that predicts what to expect “that sounds like a __________ ad” Motel 6 personality strategy Deliver brand personality at every point of contact

HED Manage Brand Affiliation How you think others will perceive you if they know you use a particular brand Prevent negative or limiting perception Motel 6 example Bic example ballpoint pens ’s disposable cigarette lighters ’s disposable razors ’s Perfume “Paris in your pocket”

HED 460 For Global Against Homogenous tastes Economies of scale Small markets get their share Brand effectiveness can be improved Local market tastes/pref. ignored Choices and effectiveness diluted for global appeal Local regulations and restrictions

HED 460 Cyberbranding Strong brand can provide powerful advantages Branding is more complex creating an experience that potential buyers interact with Reach and interactivity are increased Victoria’s Secret example

HED 460 Brand Extension New products Williams-Sonoma’s Pottery Barn catalog launched Pottery Barn Kids L.L. Bean launched L.L. Home New customers Abercrombie & Fitch launched abercrombie New formats Avon to Avon.com, mall-based kiosks, Avon spa Delia’s direct marketer, stores, Internet

HED 460 Brand Extension New Channels Starbucks, license with Kraft for supermarkets New Businesses Tesco now offers natural gas to customers Nordstrom is into financial services

HED 460 Rational Branding Something of value is given in exchange for information Build your own…...

HED 460 Rational Branding