Welcome to class of Brands and Brand DevelopmentbyDr. Satyendra SinghProfessor, Marketing and International BusinessUniversity of WinnipegCanadas.email@example.com://abem.uwinnipeg.cawww.abem.ca/conference
Brands… • Explains a product and what it stands for • Brand is a function of • Years of advertising • Good will • Quality evaluation • Product experience • Other attributes the market associates with the product • Soon brand value will appear as assets on balance sheet! • Increase in travel by consumers • what type of a person a brand be if it were a person?
Brands • Brand strategy at international level important • Four Branding Strategies • Luxury Brands • Global Brands • Multiple National Brands • Private Brands
Global Brands • Same Positioning Globally! • Focus Strategy to Target Specific Customers • Market is large • Economies of scale in marketing, production and distribution • Reduces distribution costs • Product standardization • Transportation, storage, inventory management more efficient • Centralize the Concept • Decentralize the Execution • Market information from local team • Top 10 brands Majority US brands, See Value in it • No Canadian Brand in Top! • Commodity oriented • Relatively small size of firms • Attitude towards global branding is weak
Top 10 Global Brands Source: Robert Berner and David Kiley (2005) “Global Brands,” Business Week, August 1, 2005, p. 90-91.
Canada’s Best Brands Source: Timothy Woolstencroft and Jeannette Hanna, “Well-managed Brands is All About Creating Customer Experiences,” Spencer Francey Peters: Media Room. July 29, 2004.
Multiple National Brands • Global Branding May Not be Possible • Translation has obscene meaning in foreign language • It does not appeal to patriotic consumers • Local brand has more market share or awareness • Foreign country is reputed for the product (technology in Japan) • Needs adjustments for • Type of product • Diversity • Market needs and preferences • Country Image Effect • English Tea, French Perfume, Chinese silk, Italian leather… • Adjust brand name that sounds close to the language of the country • Country of Origin Effect • Mandated requirement to write made in … • Country of base material – Canadian law (cloths) • Russians like foreign goods (Finland), but homegrown foods • Europeans have love-hate relationship with US products
Private Brands • Private Brands typically are not exported • Private Brands are Threat to Foreign Brands • Formidable competitors • High margin • Receive preferential shelf space • Strong in-store promotion • Appeal to consumers • High quality as low price • To maintain market share, global brands need to be priced competitively and provide real value to customers
Luxury Brands • This sector is growing in emerging markets • Differentiation • Ego satisfying products/services • Key message may Indicate • Success, Confidence, ↑ mobility in Society • Armani • Burberry • Coco Chanel • Ferragamo • Gucci • Hermes • Louis Vuitton • Mont Blanc
Marketing Strategy (Personality) some traits are more desirable than others some traits may be even undesirable your personality should match most closely with the product It is an expression of yourself Concept of Brand Personality (BP) BPs are often the basis for a long-term relationship with brand How to measure a Brand? (42-item construct)
Excitement Competence Sophistication • Daring • Spirited • Imaginative • Up-to-date • Reliable • Intelligent • Successful • Upper class • Charming Dimensions of Brand Personality Brand personality Sincerity Ruggedness • Down-to-earth • Honest • Wholesome • Cheerful • Outdoorsy • Tough Source: J.L. Aaker, “Dimensions of Brand Personality,” Journal of the Marketing Research, August 1997, p. 352.
Group Activities Identify 5 each (1) Global brands (2) Multiple national brands and (3) Private brands. Justify for putting them in these categories. Identify 10 Global and Luxury brands and compare them and comment on the differences or similarities; e.g. Color Symmetry Abstract Harmony Balance Complex Repetition …choose your own 5 dimensions for the comparisons.