Branding Strategies Mamurjon Rahimov mrahimov@wiut.uz

1. Branding Strategies Mamurjon Rahimov mrahimov@wiut.uz

2. There are so many brands in some categories that it is difficult to stand out.

3. The brand name may account for more than half of the brand value on the balance sheet. Almost 70% of the market capitalization of such brands as Nike and Prada lie in its intangibles, especially the brand. The former chairman of Quaker Oats said: “If the business were split up, I would take the brands, trademarks, and goodwill, and you could have all the bricks and mortar—and I would fare better than you.”

4. Marketers Have Lessening Influence in Shaping Their Brand Image • Person-to-person conversations about many products can exceed the amount of communication under the company’s control. • Thus a brand can be hijacked (see Alex Wipperfürth, Brand Hijack: Marketing without Marketing, New York: Portfolio, 2005). • Four possibilities • Everyone is talking negatively about the company. • There is no talk about the company • The talk is a mix of good and bad comments • Virtually all the talk is favorable • Marketing 2.0 managers listened to the consumers’ voices to understand their minds and capture market insights. • Marketing 3.0 is when consumers play the key role of creating the value through co-creation of product and service.

5. Your Brand Needs to Own a Word • Mercedes - engineering • BMW - driving • Disney - family fun entertainment • Saturn - no hassle car buying • FedEx - overnight • Wal-Mart - low prices/good values • Hallmark - caring • Nike - performance • 3M - innovation • Volvo - safety • Starbuck - best coffee experience

6. A Brand Must be More Than a Name • A brand must trigger words or associations (features and benefits). • A brand should depict a process (McDonald’s, Amazon). • A great brand triggers emotions (Harley-Davidson). • A great brand represents a promise of value (Sony). • The ultimate brand builders are your employees and operations, i.e., your performance, not your marketing communications.

7. Score Your Brand (1 to 3) 1 2 3 Product Benefits Distinct Identity Emotional Values

8. LEADING B2B BRANDING COMPANIES • DuPont • Siemens • Bosch • General Electric • Saint-Gobain • UPS • FedEx • Tentra Pak • Microsoft • Caterpillar • IBM • Daimler • Michelin • Tata Steel • Morgan Stanley

9. The Brand Within the Brand:“Ingredient Branding“ or InBranding

10. Logos of Ingredient Brands

11. Find a Way to Brand These Commodities • Chicken • Cement • Bricks “It is possible to brand sand, wheat, beef, bricks, metals, concrete, chemicals, corn grits, bananas, apples, aspirin, …”(Sam Hill, How to Brand Sand). CAN YOU DESIGN NEW FEATURES FOR AN AUTO INSURANCE POLICY?

12. Creating genuine customer value: Progressive Insurance MyRate rewards lower risk drivers with lower rates. “ I don’t drive a lot of miles, I’m a safe driver, and I’m not usually on the road late at night when accidents are most likely to happen. Since I’m less likely to be in an accident, shouldn’t I pay less for car insurance?” Name Your Price lets customers customize their policy to fit their budget. “ I want an easier way to see how I can meet my insurance needs at a great price.”

13. Develop a Memorable Brand Slogan • BA, “The World’s Favorite Airline” • American Express, “The Natural Choice” • AT&T, “The Right Choice” • Budweiser, “King of Beers” WHAT DO YOU THINK OF THESE SLOGANS • Ford, “Quality is #1 Job” • Holiday Inn, “No Surprises” • Lloyds Bank, “The Bank that Likes to Say Yes” • Philips, “From Sand to Chips” • “Philips Invents for You” • “Let’s Make Things Better”

15. What Should Your Measure About Your Brand’s Standing? • Customer perceived value • Customer satisfaction • Customer loyalty • Customer advocacy • Customer co-creation

16. Steps in Strategic Brand Management • Identifying and establishing brand positioning • Planning and implementing brand marketing • Measuring and interpreting brand performance • Growing and sustaining brand value

17. Brand Name Selection • Desirable qualities for a brand name include: • It should suggest product’s benefits and qualities. • It should be easy to pronounce, recognize, and remember. • It should be distinctive. • It should be extendable. • It should translate easily into foreign languages. • It should be capable of registration and legal protection.

18. Brand Positioning • Can position brands at any of three levels: • Product attributes (speed, quality, color, and etc.) • Product benefits (luxury, safety, …) • Beliefs and values (Body Shop, Ralph Lauren,…)

19. Brand Development • Line extension: • introduction of additional items in a given product category under the same brand name (e.g., new flavors, forms, colors, ingredients, or package sizes). • Brand extension: • using a successful brand name to launch a new or modified product in a new category.

20. Brand Development • Multibranding: • offers a way to establish different features and appeal to different buying motives. • New brands: • developed based on belief that the power of its existing brand is waning and a new brand name is needed. Also used for products in new product category.

21. Improved perceptions of product performance Greater loyalty Less vulnerability to competitive marketing actions Less vulnerability to crises Larger margins More inelastic consumer response Greater trade cooperation Increased marketing communications effectiveness Possible licensing opportunities Advantages of Strong Brands

22. THANK YOU FOR YOUR ATTENTION!