1. BRANDING STRATEGIES MANAGING BRANDS OVER TIME CHAPTER 13 Part 1: Introducing the Strategy of Building and Sustaining Brand Meaning 1. Reinforce 2. Restore 3. Reinvent Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku.edu

2. THE IMPORTANCE OF MANAGING BRANDS OVER TIME Customer Needs Change Markets Shift CompetitionExpands Services Replace Products Brand Meaning Fades

4. WHERE ARE THEY NOW ?

5. BRAND LIFE CYCLE CONCEPT

6. BRANDS REQUIRE DIFFERENT STRATEGIES AT EACH LIFE CYCLE Customer Experience & Value Customer Experience & Value Brand Meaning & Direction Brand Meaning & Direction Reinvent Credibility & Trust Credibility & Trust Competitive Advantage Competitive Advantage Revitalize Brand Consistency Brand Consistency Brand Investment Brand Investment Reinforce Discovery – Who Are You Discovery – Who Are You Positioning – What Is Your Story Positioning – What Is Your Story Create

7. BRAND CREATION INITIALLY BRANDS ARE CREATED WITH KEY ASSOCIATIONS THAT DEFINE THEIR IMAGE AND POSITION IN A MARKET Quality Price Trust Imagery Place

8. CLASS BRAINSTORM –IDENTIFYING BRANDS WITH STRONG POSITIVE PERCEPTIONS EXPLORING BRAND CONSISTENCY CLASS BRAINSTORM –IDENTIFYING BRANDS WITH STRONG POSITIVE PERCEPTIONS Exceptional Quality Customer Service Nostalgia Memories Availability and Convenience Trusted Brand Character or Endorser Affordability

9. IT IS IMPORTANT TO UNDERSTAND THE BASIS OF YOUR ORIGINAL BRAND CREATION STRENGTHS PODChannels Iconic Products Charcters

10. OVER TIME BRAND MEANING NEEDS TO BE REINFORCED http://canadacoaster.com/LargeCustomCoasterShapes.php

12. THE GOAL OF REINFORCEMENT IS TO MAINTAIN MARKET AWARENESS OF A BRAND IN TERMS OF ITS PRODUCTS, ATTRIBUTES AND ADVANTAGES 1.What products does the brand represent ? 2.What benefits does it provide? 3.What makes the brand superior ? 4.What positive brand associations exist?

14. REINFORCEMENT STRATEGY 1 MAINTAIN CONSISTENCY https://lindsaydimc.wordpress.com/2013/09/0 6/32/ 1.Quality levels 2.Messages / Promise 3.Iconic Characters 4.Logo’s / Imagery 5.Key Experiences

15. BRAND CONSISTENCY – WHAT DO YOU KEEP 9of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku.edu 11 IPhoneIPhone BuickBuick Magic KingdomMagic Kingdom Certain Associations You Need To Maintain Fast FoodFast Food Family FunFamily Fun Breakfast FoodBreakfast Food Golden ArchesGolden Arches Gerber BabyGerber Baby WendyWendy

16. Consistency Change 2of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku.edu 11 BRAND REINFORCEMENT IS A BALANCING ACT Nostalgia Positive Past Associations Market Loyalty Shifts in Market Demographics New Competitors SecondaryCompetition Forces That Support Reinforcing Past Brand Associations Forces That Support the Need For Changes in Brand Identity Broader Context Of Brand Use

17. BRAND MESSAGING Modifying the Message Must Follow a Logical Path

18. REINFORCEMENT STRATEGY 2 RETRO BRANDING THE POWER OF “NOSTALGIA” 1.Original Products 2.Ingredients 3.Original Ads 4.Packaging 5.Landmarks http://logos.wikia.com/wiki/Kraft_Ma caroni_and_Cheese

19. REINFORCEMENT STRATEGY 2 RETRO BRANDING DOES NOT ALWAYS WORK WHEN EXTENDING TO BRAND EXTENSIONS 1.Segments Differ 2.Other Competition 3.Category Migration 4.Price Hopping http://www.warhol.org/education/resou rceslessons/Campbell%E2%80%99s- Soup--Ode-to-Food/ http://www.livingrichwithcoupon s.com/2015/01/campbells-skillet- sauces-0-59-shoprite.html http://www.cvs.com/shop/household-grocery/food-snacks/soup/campbell-s- chunky-chili-with-beans-roadhouse-skuid-322106

20. REINFORCEMENT STRATEGY 3 BRAND FORTIFICATION “REINVEST” TO REINFORCE 1.Advertising 2.Co-Branding 3.Channels 4.Promotions 5.New Products http://brandchannel.com/2013/09/25/wonder -bread-returns-to-store-shelves-with-new- owner-old-look/

21. Wonder Bread Returns to Store Shelves with New Owner, Old Look Posted September 25, 2013 by Dale Buss Dale BussDale Buss Georgia-based baking giant Flowers announced that it has been putting Wonder back on store shelves since Monday along with other former Hostess-owned brands that it acquired in February, along with 20 baking plants, for $355 million.putting Wonder backfor $355 million “We went into the archives and pulled packaging designs from earlier days,” said Keith Aldredge, Flowers’ CMO, according to FoodBusinessNews.com. “We’re bringing back the classic Wonder… logos and colors. We hope the nostalgic look creates happy memories for many and attracts new consumers with its retro appeal.”

22. 8of Brand Fortify BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku.edu 11 LL Bean Timex GPS Company Image Advertising Product Design Delta Faucet Coldplay Gillette Fusion Toyota Prius Wonder Bread BMW Investing in an Existing Brand Occurs on 3 Levels and Can Extend the Life Of the Brand

23. FORTIFY VERSUS LEVERAGE Fortifying is a strategy to take Secondary Branding Secondary Branding Price Premiums Price Premiums Brand Extensions Brand Extensions Cost Reduction Cost Reduction

24. New Product Categor y 9of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku.edu 11 Expand Into New Uses Diversified Same Segments Same Category Similar Channels Same Segments Same Core Value Same Channels How do you know when you have extended the original brand too far? Core customers are unfamiliar Product focus is different Brand association is weak

25. REVITALIZING BRANDS MAKING A BRAND COMEBACK http://www.coolchaser.com/graphics/tag /Lacoste Once popular for Tennis wear Once popular for Tennis wear Became a discount brand Became a discount brand In the 1980’s after General In the 1980’s after General Mills acquired the company Mills acquired the company 2002 relaunched new styles 2002 relaunched new styles Of fashion forward Of fashion forward Sold exclusively in Boutique stores Sold exclusively in Boutique stores

28. REVITALIZING BRANDS STRATEGY 1 EXPAND AWARENESS TO NEW BRAND CATEGORIES http://www.coolchaser.com/graphics/tag /Lacoste Mountain Dew Code Red Mountain Dew Code Red Febreeze Air Fresheners Febreeze Air Fresheners Arm & Hammer Laundry Arm & Hammer Laundry 2002 relaunched new styles 2002 relaunched new styles Of fashion forward Of fashion forward Sold exclusively in Boutique stores Sold exclusively in Boutique stores

30. REVITALIZING BRANDS STRATEGY 2 DEFINE A NEW MARKETS Coach defined a new brand line Coach defined a new brand line Poppy handbags Poppy handbags Targeted at younger females Targeted at younger females Priced at $260 Priced at $260 For 14-20 year olds For 14-20 year olds

32. REVITALIZING BRANDS STRATEGY 3 UPGRADE YOUR IMAGE Restore Trust after a problem Restore Trust after a problem Leverage Transparency Leverage Transparency Create a CSR Create a CSR Embrace Sustainability Embrace Sustainability http://www.treehugger.com/style/nike- talks-trash-with-shoe-made-from- manufacturing-waste.html

35. Focus the Channel Younger Segment Sub-Brand Younger Segment Lacoste Live LaCoste Refresh Advertisin g Broaden the Portfolio Burberry 10of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku.edu 11

36. Retain Existing Customers Create a Community License Image Harley Attract New Customers Code Red MDX Mountain Dew 10of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku.edu 11

37. Change frame of use Different Bag Options Fill Usage Voids Coach Reposition Brand Healthier Food Choices McDonald’s 10of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku.edu 11

38. RESTORING BRAND TRUST

39. THE CHANGING LANDSCAPE OF BRAND TRANSPARENCY

40. WHEN IS IT TIME TO REINVENT

42. 9of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku.edu 11 WHEN IS IT TIME TO REINVENT

44. WHEN SHOULD YOU EVOLVE 9of BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku.edu 11

45. BRANDING PRINCIPLE – REINVENTION THE GOAL OF REINVENTION SHOULD ALWAYS BE ….. TO FIND A BETTER PATH FOR THE FUTURE

46. DIFFERENT PATHS TO REINVENTION UserBenefit Evolve Brand Direction

47. WHEN IS IT TIME TO REINVENT Technology Changes Playing Field Your Brand Becomes Obsolete Markets Emerge or Diverge

48. WHEN IS IT TIME TO REINVENT Technology Changes Playing Field Your Brand Becomes Obsolete Markets Emerge or Diverge

49. AMERICAN EXPRESS CEO REINVENT WITH THE IDEA OF PUTTING YOUR CURRENT COMPANY OUT OF BUSINESS”

50. AVON’S NEW CEO DISCUSSES CHANGES TO THEIR BRAND STRATEGY FORBES MAY 2012 How will you grow this company? The area of focus for us is the consumer proposition and understanding the differences between what a Brazilian consumer needs versus a Russian consumer, for example. It’s about making sure that we are looking at the representative experience, asking,. What do we need to do to be competitive in a particular market so that she’s earning? Then it’s about getting the geographies right so that we’re investing in the highest potential geographies and dealing with geographies that are more of a drain on the business.

51. RECREATE PRODUCT EXPERIENCE THROUGH INNOVATION

52. WHEN YOUR LEAD CHARACTER BECOMES SCAREY AND CREEPY

53. CHANGE YOUR IMAGE ENTIRELY

54. Burberry's Secrets to Successful Brand Reinvention http://www.forbes.com/sites/johnkotter/2013/02/26/burberrys- secrets-to-successful-brand-reinvention/ Recent headlines highlight the plight of established, well-known brands as they struggle to evolve, and the less sensational retail success stories are second-page news. struggle to evolvestruggle to evolve There’s one story that caught my eye, not just because it’s a positive alternative to front-page news, but because it provides an exceptional example of an executive using great leadership to turn a company around. There’s one story that caught my eye, not just because it’s a positive alternative to front-page news, but because it provides an exceptional example of an executive using great leadership to turn a company around. one storyone story The company story that deserves highlighting is that of Burberry.

55. Burberry's Secrets to Successful Brand Reinvention http://www.forbes.com/sites/johnkotter/2013/02/26/burberrys-secrets-to-successful-brand- reinvention/ Regain Focus Regain Focus When Angela Ahrendts took the helm as CEO of Burberry in 2006, she asked one question: Where were the trench coats? Burberry’s external focus on the competitive luxury clothing and leather goods space had led it to neglect the company’s core strength – its iconic outerwear. In fact, other brands had begun to delve into Burberry’s sanctum. Organizations that lack focusOrganizations that lack focus commonly concentrate on the competition rather than nurturing their areas of strength. Organizations that lack focus A historical lack of focus had left Burberry vulnerable to losing the lead in its category to newcomers. Ahrendts began a campaign to align the company around the iconic trench coat that had made Burberry famous. A historical lack of focus had left Burberry vulnerable to losing the lead in its category to newcomers. Ahrendts began a campaign to align the company around the iconic trench coat that had made Burberry famous. Over the next six years, it took factory closures, layoffs, leadership shake-ups, and a re-invention of the brand to make this happen.

56. Burberry's Secrets to Successful Brand Reinvention http://www.forbes.com/sites/johnkotter/2013/02/26/burberrys-secrets-to-successful-brand- reinvention/ Stand by Your Vision As an American from the midwest, critics questioned Ahrendts’ ability to understand an established British brand. As an American from the midwest, critics questioned Ahrendts’ ability to understand an established British brand. She faced opposition from outside as well as inside the company. But Ahrendts did not veer from her course. She established a clear vision, she aligned the leadership team and the organization around it, and she did what it took to deliver on the vision. established a clear vision,established a clear vision, Stand by Your Vision Some CEOs in this situation dangerously attempt to appease their critics. When a CEO bends to external forces (shareholders and boards of directors), they alleviate the pressures of today only to trade them for the long-term success of the vision – and subsequently the longevity of the company.

57. Burberry's Secrets to Successful Brand Reinvention Stand by Your Vision Share, Engage, and Involve It took not just Ahrendts, but all of Burberry to make this turnaround happen. She painted a clear picture of the opportunity for the company. She ensured everyone understood the vision. Then, she engaged the organization in helping to accomplish it. engaged the organization This is very unusual. Ask the sales clerk at many large clothing retailers today what his or her employer’s long-term vision is and you’ll most likely be met with silence – this is one reason why those companies are failing.why those companies are failing Ahrendts shared her vision with the entire company. She retrained her sales people by bringing multi-media re- education programs to each store. But she didn’t just direct them how to sell, she shared the “why” – the trench coat is unique to Burberry, it’s core to the brand, and the commission on one trench coat is higher than that of ten polo shirts. She empowered the sales staff to become a powerful force of brand advocates.powerful force of brand advocates

58. WHEN NOBODY KNOWS YOUR NAME

59. CHANGE THE CONVERSATION

60. MAKE IT SEEM PERSONAL

61. MICHAEL DELL NOW REINVENTING PC STALWART JON SWARTZ, USA TODAY JUNE 9, 2014 JON SWARTZ, USA TODAY JON SWARTZ, USA TODAY It had been several months since he'd wrested control of the company he founded 30 years ago in his college dorm from a ferocious corporate raider. And the buoyant Dell just received word his iconic company was expecting its sixth straight quarter of growth in PC market share Now comes the hard part, some analysts suggest: reinventing a company that made its name — and fortune — selling personal computers in a world increasingly beholden to smartphones and tablets. The Round Rock, Texas-based Dell also intends to capitalize on the ubiquitous Internet of Things, sensor-enabled devices and wearable devices that are expected to number in the tens of billions within a few years. "It's an exciting opportunity," says Dell, 49. "Anything that creates more nodes and data means potentially selling more servers, storage and networking gear." But the company is drawing the line at building its own line of wearable devices, he says.

62. MICHAEL DELL NOW REINVENTING PC STALWART JON SWARTZ, USA TODAY JUNE 9, 2014 JON SWARTZ, USA TODAY JON SWARTZ, USA TODAY But the company is drawing the line at building its own line of wearable devices, he says. "The world got enamored with smartphones and tablets," Dell says. "But what's interesting is those devices don't do everything that needs to be done. Three-D printing, virtual-reality computing, robotics are all controlled by PCs. Productivity is grounded in the PC.“ "Where does the computing power come from?" Dell says, leaning forward. "How would you run USA TODAY without PCs? Run a hospital without PCs?" "People don't want products, they want solutions," Dell says

63. MICHAEL DELL NOW REINVENTING PC STALWART JON SWARTZ, USA TODAY JUNE 9, 2014 JON SWARTZ, USA TODAY JON SWARTZ, USA TODAY The rub, however, is selling the company's broader product lineup and services to longtime customers weaned on Dell PCs and servers, Eastwood says. "That takes both deeper and different relationships with customers," he says. "Many of Dell's sales professionals will not be able to effectively make this transition.“ The new Dell also "needs to work much harder to get its message out and change customer perceptions regarding its capabilities as an enterprise- solutions provider," Eastwood says. "This will take additional advertising and marketing effort at the corporate level."

64. CLASS BRAINSTORM HULU REINVENTION Different Channel New Markets Different Products

65. CLASS BRAINSTORM NOKIA REINVENTION Different Channel New Markets Different Products