Brand Management Strategy MBA Elective 2013 Glasgow

Brand Management Strategy MBA Elective 2013 Glasgow , June 3 Abu Dhabi, June 20 Hong Kong, July 12 Singapore, July 19

Your Mission, Your Instructor 1. 2. 3. 4. 5. Show up, be engaged Respect the person speaking Keep up with the reading + materials During in-class videos, turn off your lap tops Have fun + meet many new friends Aim and Objectives of the Course Learning in the classroom should be a ‘two way street’ where teachers and students learn from each other and from the environment surrounding them” (Minter, 2009, p. 53) “ m. marck@strath. ac. uk http: //www. strath. ac. uk/marketing/academicstaff/marckmichaeldr/

Evaluation: In-class, Group presentation 30% Individual Assignment 70%* *due 4 weeks after the course Text book: there isn’t one, we’ll be using journal articles which will be provided – bring a memory stick

List of Presentation Topics (journal articles will be provided) Explain the topic, use theory, give examples and applications Why is it an important topic; what are the branding strategies related to your topic Discuss recent trends and issues for your topic – teach the class! 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Nostalgia Product Placement Luxury branding Brand extensions and diffusion brands Flagship stores, how they promote brands Counterfeits Swatch Watch case Private label (own brand, house brand) Celebrity Branding Red Bull case

Brands versus Product

A Brands’ role For the Customer: Identification; awareness; ‘promise’; quality; image, reputation/guarantee, risk reducer For the Manufacturer: Identification; legal requirements; quality; Information; value; create an association, greater profit (price premium) The key to branding is that consumers perceive differences among brands in a product category; marketers can benefit from branding whenever consumers are in a choice situation “The majority of the public will buy on price but some will pay a slight premium. In our case a 5% premium translates into an extra £ 250 million profit a year” Sir Collin Marshall, Chairman of British Airways

Brand Equity: a set of assests (and liabilities) liniked to a brand‘s name and symbol that adds (or subtracts from) the value provided by a productg or service to a firm and/or that firms‘ customers (Aaker, 1996). . . distinguishes a brand from that of the competitors (Shamma et al. , 2011) Discussion Question: what is negative brand equity and give examples

Steps of Brand Building 1. Establish a Brand Identity – Ensure identification of the brand with customers and an association of the brand in customers’ minds with a specific product class or customer need 2. Create a Brand Meaning – Firmly establish the totality of brand meaning in the minds of customers by strategically linking a host of tangible and intangible brand associations with certain properties 3. Elicit Customer Response – Elicit the proper customer responses to this brand identification and meaning 4. Forge Band Relationships – Convert brand response to create an intense, active loyalty relationship between customers and the brand

Brand Identity Brand Meaning 1. Brand Salience: – Depth and breath of brand awareness – Recall and recognition; top-of-mind – Depth and breadth of brand awareness 2. Brand Performance: – Meeting customers functional needs – Reliability, durability and serviceability 3. Brand Imagery: – How people think about the brand – Meeting customers psychological and social needs e. g. Virginia Slim vs. Marlboro brand personality

Brand Response Brand Reasoning 4. Brand Judgments: – Customers’ opinion of the brand – Brand attitude, brand credibility and superiority 5. Brand Feelings: – Customers’ emotional responses and reactions to the brand; Characteristics: warmth; fun; excitement; security; social approval; self-respect 6. Brand Resonance: – Customers’ relationship with the brand – Relationship intensity and activity Characteristics: behavioural loyalty; attitudinal attachment; sense of community; active engagement

In Class Exercise: American Express Campbell, 2008, p 208

Brand equity (Source: Aaker, 1992, p. 47)

In Class Exercise: American Express

In Class Exercise: Discuss the key brand elements that sustain AMEX’s brand equity Key Learnings: -

24 +8% $15, 702 $m American Express Offering various types of charge cards for small businesses to manage their expenses, and currently the largest provider of corporate cards, American Express has launched the Open Forum to provide additional support for this key market segment. A virtual space for small business owners to make connections and share insights, American Express Open Works provides small businesses with the knowledge they need to power their own success. The site offer numerous resources and educational tools for members, which keeps the community active and engaged, and solidifies American Express’ role as not just a credit card company, but also an advisor, a friend, and the beneficent presider over a vast tribe of small businesses.

Positioning by Segments Consumer segment bases: behavioral (usage, loyalty, benefits sought); demographic; geographic Psychographic (lifestyle) bases: ‘baby boomer’ ‘tween’ health conscious

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Young and Rubicam Brand Asset Valuator Model http: //www. valuebasedmanagement. net/methods_brand_asset _valuator. html Differentiation Band Vitality Relevance Band Value Esteem Knowledge Brand Stature

Young and Rubicam Brand Asset Valuator Model Ref: Campbell, M. , 2002. International Journal of Medicine Marketing, 2/3, p 208218

Total Brand Equity Measurement Ref: Shamma, H. , Hassan, S. , 2011. International Journal of Marketing Studies, 3, 1, p 11 -20

We create and manage brand value by making the brand central to the business’s strategic aims. We’re not interested in simply being the world’s biggest brand consultancy. We want to be the most valued. http: //www. interbrand. com/en/best-global-brands/2012/Best-Global-Brands-2012. aspx Top 10 for 2012 (2011) 1. 4. 7. 9. Coke (1) Google (4) Mc. Donalds (6) Samsung (-), 2. 5. 8. 10. Apple (8) Microsoft (3) Intel (6) Toyota (-) 3. IBM (2) 6. GE (5)

Interbrand Brand Equity Evaluation

Coca-Cola. A name that is more universally recognized than any other in the world. That’s the power of Coca-Cola’s brand. Some will say it’s the flavor, but for millions, it’s the way Coca-Cola makes them feel. A brand that’s always evolving, Coke’s brand promise of fun, freedom, and refreshment resonates nearly everywhere. The company excels at keeping the brand fresh while maintaining a powerful sense of nostalgia that unites generations of Coke lovers and reinforces consumers’ deep connections to the brand. Its edgy campaigns continue to push boundaries, and Coca-Cola reinforced its values through celebratory promotions relating to its 125 thyear anniversary (“Sharing Happiness”) and the London Olympics (“Move to the beat”).

#86 Pizza Hut, part of the Yum Brands portfolio, kicked off 2012 with its “Top This” campaign. It used Facebook to give consumers the chance to appear in a pre-game Super Bowl commercial, illustrating how Pizza Hut is deepening its connection with consumers through social platforms. With 7, 200 restaurants in the US and 5, 600 in other countries, Pizza Hut has introduced new products to appeal to local tastes. In the Middle East, it introduced “Crown Crust Pizza. ” In China, the chain opened restaurants with a casual dining setting that offers typical American dishes. These vast regional differences, along with the fact that the brand has gone through numerous brand image changes over the past decade, have left some customers confused about Pizza Hut’s core values and positioning. In May 2012, the brand took aim at the sandwich market — namely Subway — by introducing a new pizza sandwich called the P’Zolo™ with the tagline “See ya subs. ” The P’Zolo initiative also enables Pizza Hut to improve on “portability” — something that pizza lacks. It remains to be seen if this menu addition will prove successful. With competitors like Domino’s Pizza entering emerging markets with strong brand promises, Pizza Hut will have to rise up in order to deliver. http: //www. guardian. co. uk/lifeandstyle/wordofmouth/20 12/apr/13/hot-dog-stuffed-crust-pizza

Discussion Question: Discuss the relevance of the following: “Whatever this year may bring, we know that the brands best positioned for success in 2013 are those that take seriously the significant role they play in people’s lives and work to remain relevant and authentic in our rapidly changing world. ” Jez Frampton Global CEO, Interbrand

Levis: Building brand equity

Video Case: Levis Use one brand equity model and discuss how Levis has built and sustained brand equity.