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Part V. Managing Brand Offer Architecture Managing the Brand in the Global Context. Managing Brand offer Architecture. Or How to signify at the same time : . a common reference of brand offerings and . how they differ from each other and . What the Brand stands for. . B2B B2C

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Part v l.jpg

Part V

Managing Brand Offer Architecture

Managing the Brand in the Global Context

PSU - Global Brand Management - Alain Hutinel


Managing brand offer architecture l.jpg

Managing Brand offer Architecture

Or How to signify at the same time :

. a common reference of brand offerings

and

. how they differ from each other

and

. What the Brand stands for.

PSU - Global Brand Management - Alain Hutinel


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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 - Global Brand Management - Alain Hutinel


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Complex Brand Offer ArchitecturesJean-Noel Kapferer

  • Product Brand : Exclusive name to a single product to assure individual positionning (Tide, Martini ……)

  • Line Brand : Extend a concept across different product in segmented market or across similar markets (Renault ….)

  • Range Brand : Use same name and promise in product categories with same ability (Green Giant …..)

  • Umbrella Brand : Support products in different markets with each its own promise, Danon

  • Source Brand : Support sub-brand names as above

  • Endorsing Brand : Approve/garanty wide variety of product brands, line and range brands GE

  • Marque : Endorsing (Corporate) Brand …..

PSU - Global Brand Management - Alain Hutinel


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Brand extension/stretching

Why extend ?

What is Brand «stretching» ?

Where to extend ?

Risks

Keys to success

Fitting

… why NOT extend ?

PSU - Global Brand Management - Alain Hutinel


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Why extend brands ?

  • increasing competition between less & larger players with global aspirations and ability to communicate globally

  • towards saturation of markets

  • similarity of brands’ offers attributes

  • decreasing brand loyalty

  • react to declining markets

  • nourish the brand perceived vitality

PSU - Global Brand Management - Alain Hutinel


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What is the brand stretching ?

  • It is the transfer of brand values on the new market

  • It shows that the brand is not related directly to one sector but has values that can transcend different products categories

PSU - Global Brand Management - Alain Hutinel


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«Where” Stretching the Brand

  • same category : no distance extension

  • new sub-category : short distance extension

  • new category : middle distance extension

  • new activity : long distance extension

  • Geographic expansion

PSU - Global Brand Management - Alain Hutinel


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Dim Brand stretching

Comfort, liberty

PSU - Global Brand Management - Alain Hutinel


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Low cost in launching Danone Activ and Talians

PSU - Global Brand Management - Alain Hutinel


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Barilla move into biscuits

taste, savor, Italian way of cooking

PSU - Global Brand Management - Alain Hutinel


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Swatch move into jewel

Modern, Quality/price, Variety, Innovative design

PSU - Global Brand Management - Alain Hutinel


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Caterpillar moved into shoes and clothing

reliable, resistant, masculine

PSU - Global Brand Management - Alain Hutinel


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Taillefine move into biscuits and water

Non fat, healthy

PSU - Global Brand Management - Alain Hutinel


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Mars move into ice cream

gourmandize, rich, sweet

PSU - Global Brand Management - Alain Hutinel


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Brand stretching risks

  • Distort/Dilute the values of the Brand

  • Lose the original consumers

PSU - Global Brand Management - Alain Hutinel


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Chevignon brand dilution

modern, adventurous, exquisite

PSU - Global Brand Management - Alain Hutinel


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Pierre Cardin brand dilution

PSU - Global Brand Management - Alain Hutinel


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Keys to success in brand extension

Brandidentity

Fit

Relevance

Brand extension

Market’s values

Added value

PSU - Global Brand Management - Alain Hutinel


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«Fitting»

  • Perceived brand «typicality», ie product categories which «go well» with the mother brand

  • Emotional agreement with the potential extension product categories

  • tested transferability of the brand’s intangibles and of the brand’s «vision», brand’s identity & brand project.

PSU - Global Brand Management - Alain Hutinel


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PSU - Global Brand Management - Alain Hutinel


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PSU - Global Brand Management - Alain Hutinel


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The success of pen, lighter, and razors Bic

Accessible, practical, deposable

PSU - Global Brand Management - Alain Hutinel


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The failure of Bic perfume

The Bic values are not relevant to perfume

PSU - Global Brand Management - Alain Hutinel


This failure did not dilute the brand essence of bic why l.jpg

This failure did not dilute the brand essence of Bic. Why ?

Because the Bic perfume was coherent with Bic Brand identity

Brand extension

Brandidentity

PSU - Global Brand Management - Alain Hutinel


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Economic evidences of brand extensions

Higher survival rate of products

Higher chances of success, due to :

. trial rate

. conversion rate

. loyalty rate (repurchase)

Lower launch cost

PSU - Global Brand Management - Alain Hutinel


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Why NOT extend brands ?

  • Unclear/no Brand Identity

  • High brand switching pattern

  • Unwatched Overheads Cost increase

  • No sufficient resources for success

  • No sufficient “Fit” and Relevance

  • ….

PSU - Global Brand Management - Alain Hutinel


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Managing the Brand in the Global Context

= Cross-Cultural Branding within the Global Business Strategy Game

PSU - Global Brand Management - Alain Hutinel


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Mega Brands 1

PSU - Global Brand Management - Alain Hutinel


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Mega Brands ?

PSU - Global Brand Management - Alain Hutinel


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Mega Brands ?

PSU - Global Brand Management - Alain Hutinel


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Mega Brands ?

PSU - Global Brand Management - Alain Hutinel


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Mega Brands ?

PSU - Global Brand Management - Alain Hutinel


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International Branding

  • What has to be adapted ?

  • Chinese Brands case

  • How much Brand origin is important ?

  • American Dream, …. And next ?

PSU - Global Brand Management - Alain Hutinel


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The View from Honda

“We are the most international of the Japanese companies. At the moment we are the most diversified, and we will be more diversified in the future. Still, I think it would be very hard to build a one-type world car. In the end, I don’t think it would be very efficient.”

---Nobuhiko Kawamoto

President and CEO, Honda Motor Company

PSU - Global Brand Management - Alain Hutinel


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The View from Toyota

Our global strategy used to center on “world cars,” which we would modify slightly to accommodate demand in different markets. Today our focus is shifting to models that we develop and manufacture especially for selected regional markets.

Examples

North America: Avalon and Camry coupe and station wagon. 1997 Sienna minivan.

NUMMI Joint Venture: Tacoma light pickup.

Europe: Carina E

Southeast Asia: Toyota Utility Vehicle (Kijang in Indonesia, Tamaraw in Philippines)

PSU - Global Brand Management - Alain Hutinel


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- John F. Welch, Jr.

"Our vision has been described to you for a decade. We believed that only businesses that were number-one or number-two in their markets could win in the increasingly competitive global arena. Those that could not were to be fixed, closed or sold."

Chairman and CEO, General Electric

PSU - Global Brand Management - Alain Hutinel


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The Brands the Heroes ?

PSU - Global Brand Management - Alain Hutinel


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Lifestyles are expressions

of sub-cultures

Signs : icons, indexes

& Symbols

Heroes

Rituals

BRANDS ?

Values

Expressions of

cultures

A value is a broad

Tendency to prefer

a certain state of affairs

over others

PSU - Global Brand Management - Alain Hutinel


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PSU - Global Brand Management - Alain Hutinel


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PSU - Global Brand Management - Alain Hutinel


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PSU - Global Brand Management - Alain Hutinel


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First Starbucks Location in London 9/17/98

PSU - Global Brand Management - Alain Hutinel


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PSU - Global Brand Management - Alain Hutinel


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PSU - Global Brand Management - Alain Hutinel


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PSU - Global Brand Management - Alain Hutinel


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Some Branding Issues

PSU - Global Brand Management - Alain Hutinel


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  • Labels and « appellations » ?

  • Retail/trade Brands ?

  • WebBrands potential ?

  • Corporate Brands ?

  • Anti Globalisation ?

  • Non Western Brand cultures ?

  • AntiBrand laws ?

  • Valuation/accounting ?

  • Citizen Brand ?

PSU - Global Brand Management - Alain Hutinel


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