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Welcome to GLOBAL BRAND MANAGEMENT. To-day Goals How we are going to work (syllabus) Some rules Part I : Investigating the Brand « power ». Me … . Alain Hutinel Education ESSEC MBA Keller Graduate School of Business (Indiana University) Experience

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welcome to global brand management
Welcome to GLOBAL BRAND MANAGEMENT
          • To-day
  • Goals
    • How we are going to work (syllabus)
    • Some rules
  • Part I : Investigating the Brand « power »

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide2
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.

503-725-3732

[email protected]

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide3
You…
  • 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 - 2006 - Global Brand Management - Alain Hutinel.

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

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide5
(some) Brand Management Websites
  • www.pwcglobal.com/fr/fra  PriceWaterhouse
  • www.tns.com Taylor Nelson Sofres, Etudes, Panels, Piges ….
  • www.esomar.nl ESOMAR Recherche MArketing
  • www.brandweek.comUS magazine
  • www.brandchannel.com Interbrand “The” site on Branding.
  • www.brandfinance.com
  • www.milwardbrown.com  Brand research and survey company
  • www.future.sri.com Research International.
  • www.intelliquest.com Millward Brown.Adverising
  • www.accenture.com Accenture
  • www.ipa.com UK Institute of Professional Advertisers
  • www.prodimarques.com French Brand Association
  • www.labelmark.com French consultant
  • www.nomen.com French consultant for Brand Names search
  • www.mckinseyquarterly.com McKinsey
  • www.exmarketing.com Consultants, Bern Schmitt (Columbia U.)
  • www.bec-institute.comHighCo brand Institute partly in English
  • http://www.cobranding.com co-branding offers
  • www.globalbrand.org

PSU - 2006 - Global Brand Management - Alain Hutinel.

what will be evaluated
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 - 2006 - Global Brand Management - Alain Hutinel.

your roles and responsibilities
YOUR ROLES AND RESPONSIBILITIES
  • To build your own brand model
  • To anticipate what you think should happen
  • Individually, to do the required homework and participate in class debate
  • To actively contribute to group work

PSU - 2006 - Global Brand Management - Alain Hutinel.

requirements and grading
Requirements and grading
  • Readings as directed
  • 3 individual essays from readings
  • 3 individual cases (powerpoint format only)
  • 1 group brand audit & project

PSU - 2006 - Global Brand Management - Alain Hutinel.

typical reading essay format
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 - 2006 - Global Brand Management - Alain Hutinel.

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

Course main Topics

PSU - 2006 - Global Brand Management - Alain Hutinel.

to day
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 - 2006 - Global Brand Management - Alain Hutinel.

ultimately brands are all about trust

« 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 - 2006 - Global Brand Management - Alain Hutinel.

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

PSU - 2006 - Global Brand Management - Alain Hutinel.

from usp to hsp
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 - 2006 - Global Brand Management - Alain Hutinel.

a brand builds its own world
A Brand builds its Own world
  • And that is a fantastic power !

PSU - 2006 - Global Brand Management - Alain Hutinel.

in this brand new world what is a brand and what does a brand do

In this brand (!) new world, What ISa Brand and What DOESa Brand do?

?

PSU - 2006 - Global Brand Management - Alain Hutinel.

think of brands in your own life
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 ...
  • 2 - List them as they come to your mind
  • 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 ?

PSU - 2006 - Global Brand Management - Alain Hutinel.

what is the best
“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 - 2006 - Global Brand Management - Alain Hutinel.

brand is an experience
A brand is essentially a container for a costumer’s complete experience with the offer and the company. (Sergio Zyman)Brand is an experience

PSU - 2006 - Global Brand Management - Alain Hutinel.

what is a brand shortcut
What is a Brand (shortcut) ?

User

Culture

Personality

Attributes

Benefits

Values

PSU - 2006 - Global Brand Management - Alain Hutinel.

the brand as an open system
The Brand as an Open System.

Chanels, contacts

Corporation

Economy …

Relationships with

customers

Competition

Organization’s associations

Personality

.Scope

.Attributes

.Uses

.Quality/

Value

.Functional

Benefits

Codes/Tone

Skills

(Core) Offer

(Tangible Products &

Services)

Symbols

Origin

User Imagery

Self-expressive benefits

Name

Tribes

Cultures

Groups …

Emotional benefits

PSU - 2006 - Global Brand Management - Alain Hutinel.

this brand system interacts as
This Brand System interacts AS ...

1) .. A SOCIO-ECONOMIC AGENT

2) .. A CORPORATE ASSET

3) .. A STRATEGIC MARKETING TOOL

4) .. A COMMUNICATING & SELLING AGENT

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide24

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

PSU - 2006 - Global Brand Management - Alain Hutinel.

brand strategic role
Brand Strategic Role

Brand

Equity

Cash flow

booster

Consumer

Response

Booster

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide28

THE BRAND AS A CORPORATE ASSET

  • 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 - 2006 - Global Brand Management - Alain Hutinel.

brand asset value
Brand Asset Value

PSU - 2006 - Global Brand Management - Alain Hutinel.

Source : K.L.Keller

brand equity
BRAND EQUITY

as a Percent of Firm Tangible Assets

  • Brand Equity
  • Industry

Apparel 61

Tobacco 46

Food products 37

Chemicals 34

Electric machinery 22

Transportation equip. 20

Primary metals 1

Stone, glass, and clay 0

PSU - 2006 - Global Brand Management - Alain Hutinel.

brand market performance valuation
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 - 2006 - Global Brand Management - Alain Hutinel.

the landor power index
Power = strength

2 synthetic measures Awareness Esteem

«Share of Mind» idea (cf. Share of Market Share of Voice, Share of Requirements ....)

Most influencing factor : brand perceived quality

need time

The Landor Power Index

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide33

Interbrand BRAND VALUE Attributes

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

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%)

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide34

Interb.

MB

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide35

Y&R ’s « Brandasset Valuator » PowerGrid

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide36

Heinz Ketchup - 2000

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide37

THE BRAND AS A KEY STRATEGIC

MARKETING TOOL

* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE

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 - 2006 - Global Brand Management - Alain Hutinel.

the brand value chain
Value Stages

Marketing programs

Customer Mindset

Market Performance

Shareholder Value

Value Multipliers

Programs Quality

Market Place & Competition Conditions

Investor Sentiment

The Brand Value Chain

PSU - 2006 - Global Brand Management - Alain Hutinel.

the leading brands 1925 and 1985
The Leading Brands: 1925 and 1985

Product Leading Brand 1925 Current Position 1985

Bacon Swift Leader

Batteries Eveready Leader

Biscuits Nabisco Leader

Breakfast cereal Kellogg Leader

Canned fruit Del Monte Leader

Chewing gum Wrigley Leader

Chocolates Hershey No. 2

Flour Gold Medal Leader

Mint candies Life Savers Leader

Paint Sherwin-Williams Leader

Pipe tobacco Prince Albert Leader

Razors Gillette Leader

Sewing machines Singer Leader

Shirts Manhattan No. 5

Shortening Crisco Leader

Soap Ivory Leader

Soft drinks Coca-Cola Leader

Soup Campbell Leader

Tea Lipton Leader

Tires Goodyear Leader

Toothpaste Colgate No. 2

PSU - 2006 - Global Brand Management - Alain Hutinel.

building brand equity
Building Brand Equity

Perceived

Quality

Brand

Associations

Preference

Name

Awareness

Other

Brand

Assets

Brand

Equity

(Name &

Symbol)

Brand

Loyalty

  • Value To Firm
  • Helps Programs
  • Brand Loyalty
  • Prices
  • Brand Extensions
  • Trade Leverage
  • Competitive
  • Advantage
  • Value To Customer
  • Info Processing
  • Confidence in Buying
  • Use Satisfaction

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide42

P & G - Mr Propre Mr Clean

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide43

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 - 2006 - Global Brand Management - Alain Hutinel.

slide44

The best Performances last longest.

PSU - 2006 - Global Brand Management - Alain Hutinel.

from traditional marketing functions of the brand name
Identification

Expresses the offer and is easily seen

Practicality

Saves times/energy thru repeat purchase & renewed satisfaction

Guarantee of quality

Has reputation

From Traditional Marketing Functions of the Brand Name …

PSU - 2006 - Global Brand Management - Alain Hutinel.

to a powerful societal system that sells
… to a powerful societal system that … sells

… ie :

  • exerts influences in the market place
  • changes consumers’ wants and needs
  • sets ideals and standards
  • helps/facilitates choice
  • provides purchase reassurance
  • reduces after-choice dissonance

……

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide47
….
  • gives meanings and identity to what we use & buy
  • 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
  • creates a longlasting relationship with « consumers », at least with customers

PSU - 2006 - Global Brand Management - Alain Hutinel.

so a modern brand is
So, a modern brand is
  • A « persona » that overlays and includes the physical products/services
  • 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.

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide49

Evian Water brings health to all growing bodies

Evian, approved spring of youth for your body.

PSU - 2006 - Global Brand Management - Alain Hutinel.

slide52

US - Evian. l’Original. Approved by your body

as a source of youth.

PSU - 2006 - Global Brand Management - Alain Hutinel.

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

Many different types of brands ?

PSU - 2006 - Global Brand Management - Alain Hutinel.

nestle branding tree
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 - 2006 - Global Brand Management - Alain Hutinel.

slide56
Nestlé Branding Tree

PSU - 2006 - Global Brand Management - Alain Hutinel.

sara lee brands
SARA LEE BRANDS
  • 25,000 brands registered worldwide, 80% in use.
  • Sara Lee is eliminating R&D & Production to focus on brand development

Sara Lee

Brand

Hierarchy

GLOBAL

REGINAL

LOCAL BRANDS

PSU - 2006 - Global Brand Management - Alain Hutinel.

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

From Traditional to Experiential Branding

PSU - 2006 - Global Brand Management - Alain Hutinel.

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