Juhana Lounela Concepts of Marketing brand extention Turku

Juhana Lounela Concepts of Marketing: brand extention Turku http: //www. youtube. com/watch? v=4 Vd. QPVgi-7 M , Archipalago http: //www. youtube. com/watch? v=XCc. Rut 3 PO-8 www. tuas. fi

Brand extention: Discuss with your pair (start alone 1 min) on what kind of interesting brands do you know. Why those are interesting? What kind of feelings/facts could you link to those? Why? Share and write down your findings. Every choose one brand. Kernel Study 1. What is core of the brand image (WHAT ATTRIBUTES ARE ESSENTIAL? /WHAT KIND HAVE TO BE? )

Brand extention: Continue discussion on your ”favorite” brand. What the brand can’t represent? If it would be person, what he isn’t allowed to be or do? Why? Summarize ideas to the paper. Kernel Study 2. The way to study what are boundaries of the brand (WHAT BRAND ISN’T ALLOWED TO BE? )

Brand extention: Continue discussion with your pair. What kind of your”favorite” brand could represent? What could be feasible and what couldn’t be feasible? Why? Prepare one minute presentation with reasoning of proposed line extention. Kernel Study 3. What is the stretch of the brand? Does it fit? (WHAT IT COULD BE IN ADDITION IT IS ALLREADY? IS IT FEASIBLE? )

Branding options

Expansion to new markets – (framework of Ansoff matrix) As the firm expands in international market/new region (state, city. . . ), issues relating to brand architecture or brand structure become even more complex the number of levels in the hierarchy, another dimension, namely the degree of brand coordination or standardization across target markets the company expands through acquisition or strategic alliances. National/local boundaries and how far branding is integrated or standardized across markets

Corporate dominant branding corporate name, as for example, Mc. Donalds, Philips, Apple, Nike, etc. In general, these were business-to-business organizations • a relatively narrow and coherent product line • a strong global identity for the brand rather than respond to local market conditions corporate logo and visual identification (Apple and Nike) played a major role in identifying the brand defining brand image worldwide

Product-dominant branding example, P&G, or Best Foods used a product dominant strategy. Firms with domestic product dominant structures, that had expanded by acquiring national companies often acquired a substantial number of national and local product brands national product brands. Often these were wellestablished traditional brand names known for their quality and reliability. For example, Akzo Nobel

Hybrid branding strategies example uses the Coca-Cola name on its cola brand worldwide, with product variants such as Cherry Coke, Coke Lite or Diet Coke or caffeine free Coke Unilever has a global brand architecture in its personal products division. The yellow fats division consists mostly of local brands with some harmonization in positioning or brand name across countries, while the icecream division had a combination of local and global product

Brand building /concept 1. Evaluate • Data analysis (AC Nielsen, Business Analytica, Datamonitor, Euromonitor, internal data…) • Consumer surveys 2. Brand wheel • Image, attributes… 3. Competitors / market analysis • Data, segments, SWOT 4. Strategy – longer term plan • How to win the war

Brand Wheel

Managing brand extensions (Source: lecture of Kapferer) 1. Why brand extensions are necessary? • The rise of advertising costs call for a reduction of brand portfolios 2. migrate the products under other brands Benefits to one single product 3. Some categories declining boost growth 4. Feed new values in the brand 5. To own a concept by multiplying the products (like Nivea, Danone, Nestle, Bic…)

Before any brand extension brand’s identity should be known What physical facets belong to its identity? What attributes or consumer benefits? What core values? What name should it receive?

What is global or local concept Are those same across the countries Identity • The set of attributes which define the brand meaning Image • The set of all associations and beliefs, attached to a brand name Positioning • A differentiating short statements, summarizing the brand reason within its competitive environment (product category) • • Brand X is the …. . (product class definitions) Which brings …. (promise, added value) To …. (target market) For what usage …. (occasions)

5 Ways to Avoid Brand Failure 1. You can’t really control your brand (though you can influence it). Your brand is created not in the boardroom but in the minds of your customers. So listen to what they have to say and build on your strengths. You’ll never succeed if you try to be something else. 2. Don’t water down your brand. If you are known for a particular service or product, resist the natural urge to expand your offerings. You are almost always better served by narrowing your focus. 3. Take an honest look at your market. Are you just another face in the crowd? You can only build a loyal following if people notice you. Make sure you offer something fresh so that your business will stand out in the crowd. Think of ways you can differentiate your business, whether it’s your products, the way you talk about yourself, or the way you present yourself visually in the marketplace. 4. Make your employees living brand ambassadors. If they are enthusiastic about your brand, your clients will be, too. 5. The world is filled with marketing chatter. Simplify your message so that people quickly can grasp what you do and how you are different. If your brand is relevant, clearly communicated, and memorable, you are on the right track. http: //pivotalbrands. wordpress. com/2007/02/07/5 -ways-to-avoid-brandfailure/