I recommend it to anyone who desires a further understanding of the various dimensions of brand management.'. Introduction: Building the Brand When Empowering the Customers 1 Part One: Why Branding is So Strategic.
Integrating brand and business
Indeed, as we shall demonstrate, brands grow out of innovation, and innovation is the lifeblood of the brand. The interrelationship between the business strategy and the brand strategy must be emphasized, because this is the way companies operate.
Pro logo?
Only brands that add value to the product and tell a story about its buyers, or place their consumption in a ladder of intangible values, can give this meaning.
It takes more than branding to build a brand
Hit parades of brands' economic value (brand equity) are regularly published in business, finance and economy magazines. The goal of strategy is to build a sustainable advantage over the competition, and brands are one of the very few ways to achieve this.
Looking at brands as strategic assets
Only recently have we realized that its true value is outside, in the minds of potential customers. In the 1990s, due to recession and saturated markets, the focus shifted from brands to customer capital.
What is a brand?
Implicitly in this definition, the product itself is excluded from the scope of the brand: a 'brand' is a set of added perceptions. Differentiation is summed up in the brand concept, the unique set of attributes (both tangible and intangible) that make up the brand's value proposition.
Differentiating between brand assets, strength and value
These are sources of brand influence (awareness/emphasis, image, type of relationship with consumers) and patents. Brand equity is the profit potential of brand assets, mediated by the brand's market power.
Tracking brand equity
Brand power is a measure of the actual status of the brand: it is mainly behavioral (market share, leadership, loyalty, premium price). In tracking studies, Pepsi Cola has a trial rate much higher than the brand preference rate (evoked set).
Goodwill: the convergence of finance and marketing
How brands create value for the customer
The informative role of the brand varies according to the product or service, the consumption situation and the individual. Ethical satisfaction related to the responsible behavior of the brand in its relations with society (ecology, employment, citizenship, advertising that does not shock).
How brands create value for the company
The economic value of the brand is the difference between the additional revenue generated by the brand and the associated costs for the next few years discounted back to today. The number of years is determined by the appraiser's (potential buyer, auditors) business plan.
Corporate reputation and the corporate brand
The management of the name's reputation, through (among other things) the communication of the corporate brand, aims to make the company their first choice. Now, most of this goodwill is attributable to the financial value of the brand as a commercial brand.
What does branding really mean?
Concretely, this means that the brand is weak when the product is 'transparent'. Permanent fluctuations in the market Development of competition, lifestyle, technology Figure 2.1 The brand system.
Permanently nurturing the difference
Brand management consists, in turn, of starting from the top and determining how the car is conceived by the brand, in order to determine exactly when a car deserves the brand name and when it no longer - in which case, logically the car should no longer carry the brand name, as it then slips out of its brand territory. A fundamental question was then asked: 'Are Peugeots still Peugeots?' Its answer meant redefining the long-term meaning of the statement 'It's a Peugeot', ie the long-term concept of the brand's automobiles.
Brands act as a genetic programme
The brand's underlying program indicates the purpose and meaning of both past and future products. Questioning the past and trying to discover the brand's underlying program does not mean ignoring the future: on the contrary, it is a way to better prepare for it by giving it roots, legitimacy and continuity.
Respect the brand ‘contract’
In theory, both the slogan and the brand signature are meant to embody the brand contract. Taking branding seriously, as it is (ie, as a contract) is much more demanding.
The product and the brand
Later, as the product name develops into a brand, customers' reasons for purchase may still be the brand's 'superior performance image', even if this performance has in fact been matched by new competitors. Finally, there are purely intangible associations attached to the brand, which arise from the brand's values, vision, philosophy, its typical buyer, its brand personality and so on.
Each brand needs a flagship product
However, there are some products within a particular line that fail to clearly express the brand's intent and attributes. That is why communication about such products is so important, as they reveal the meaning and purpose of the brand.
Advertising products through the brand prism
Each product range should thus contain products that demonstrate the brand's guiding value and obsession, flagships for the brand's meaning and purpose. This is why weak brands fail to capitalize on their innovations: they fail to neither strengthen brand relevance nor create that all-important resonance.
Brands and other signs of quality
Strong brands are those that spread values and manage to segment the market with their own means. In dealing with the 'mad cow' crisis, McDonald's wondered whether they should rely only on their own brand or also on the collective signs and certificates of origin.
Obstacles to the implications of branding
This is the case of investments made in communication to inform the general public about the brand's identity. But since the brand's consumers do not expect this innovation (each brand defines its type and level of consumer expectations), the product turnover is insufficient.
Are brands for all companies?
For this reason, it is worth noting that BPB chose to retain the Placoplatre product brand – a local brand which had become synonymous with the product itself, and indeed a leader in its markets. Another typical example is Somfy, a world leader in motors for window blinds and openings for home use: this leadership has been gained through changing its OEM business model and refocusing the brand on the end user, just like Intel, Lycra, Woolmark and others. performed successfully.
Building a market leader without advertising
These five steps to building a brand in the market may seem simple and easy to follow. Finally, the organization of industry in the Old World is too fragmented.
Brand building: from product to values, and vice versa
Little by little, a reversal occurs in the process: instead of the product building brand awareness and reputation (bottom-up arrow of influence), it is the brand that differentiates and endows the product/service with its unique values (up - arrow with points). Nike is now in a brand expansion phase: the brand has expanded from running shoes to sportswear and now golf clubs.
Are leading brands the best products or the best value?
Finally, as the two dotted arrows on the graph show, brand management consists of a constant coming and going between tangible and intangible assets. The HEC MBA, which lasted two years, was probably too high quality for European company recruiters and too long for European students.
Understanding the value curve of the target
Breaking the rule and acting fast
A brand is the epitome of values, but value, as you know, lies in the eyes of the beholder, the customer. It is important to be market focused and ask what the value curve for the target is.
Comparing brand and business models: cola drinks
In order to squeeze the competition out of the market (whether defined as cola drinks or more broadly) the company also exerts high price pressure on the entire market. The Body Shop, now part of the l'Oréal family, only sells its own distributor brand.
Evolution of the distributor’s brand
The distributor's brand, managed with strength and ambition, thus contributes to the store's reputation. In terms of the nominal relationship with the store, a distributor's brand may bear either the store's name or its own name: one or the other.
Are they brands like the others?
This cross-sectional status of the distributor's brand explains the difficulty of managing the store brand completely like a brand. This means that the repeat purchase of the distributor's brand is always dependent on the price: it is highly conditional.
Why have distributors’ brands?
The last step is a logical one; the distributor's brand - which represents only a small part of the offering to begin with - can only grow. Now the question for all boards of major industrial groups is: why leave this market to the SMEs.
The financial equation of the distributor’s brand
Assume this is a large distributor with a net margin of 2 percent and an inventory turnover of 10 percent. The second reason for introducing a distributor's brand is the increase in bargaining power with the manufacturer.
The three stages of the distributor’s brand
Lack of attention may cause the consumer to take the distributor's brand instead of the big brand's product. In this situation, the distributor's brand is critical to positioning because its content and products express the distributor's values.
The case of Decathlon
During this stage, the power and management of the brand is no longer solely in the hands of the buyer. They do not allow store positioning or generating loyalty through store affiliation.
Factors in the success of distributors’ brands
The start-up will be implemented with the passion brands: in China they represent 70 percent of the range. Note that surveys of distributors' brand customers have shown that their penetration has now reached all segments of the population.
Optimising the DOB marketing mix
Moreover, it is the strongest, even if the price difference is smaller (20 per cent cheaper): therefore the profitability is maximum. Interestingly, demand does not increase when the price is lowered (35 per cent cheaper); on the contrary, it drops to 28 percent when the price is lowered further (50 percent cheaper), presumably as a result of the anxiety this price arouses in mothers (it is, after all, a product for children).
The real brand issue for distributors
When the organization does not have a critical mass, it is necessary to replace it with goodwill, i.e. with the power of the brand. It's time to stop talking about "distributors"; now the ambition should be the city.
Competing against distributors’
The result of such contact is a change in the brand or packaging of the distributors of the disputed products. The first reaction is to remind people of the risks, to restore involvement in the category.
Facing the low-cost revolution
To meet the challenge of the cheapest possible industrial chicken, the brand must offer halal chicken, organic chicken, regional chicken, etc. The same applies to the increasing use of the Internet for reservations and payments.
Should manufacturers produce goods for DOBs?
It is also vital to track non-value-added costs, even by imitating the best practices of low-cost competitors. For a time, the Olympia product produced for Carrefour was superior to the comparable own brand product.
Luxury, brand and griffe
The second concept of luxury in the world elevates the creativity and sensuality of products. At the top of the pyramid is a vulture - the creator's signature, engraved on the unique work.
Service brands
No wonder: slogans are indeed vocal, they are the brand's vocatio, that is, the brand's vocation or vocation. This is why brand alignment has become so important if the entire organization wants to 'live the brand' (Ind, 2001).
Brand and nature: fresh produce
I preserve the taste of the wine from year to year, thanks to the blending of different sources; It is true that there are more than 3,000 Bordeaux wines called 'château', and the disparity in taste quality and low prices have undermined the confidence once placed in Bordeaux.
Pharmaceutical brands
Thus, brands of drugs have a mental existence and influence in the minds of prescribers. In another piece of research, we investigated the importance of the laboratory's own image in medical prescribing.
The business-to-business brand
The perceived risk of purchase has shifted from the PC builder to the components themselves (Intel, AMD), which are now becoming the parameters of choice, and the operating system (Windows Vista). All B2B marketing of the brand should be focused on the customers of the distributor or the customers of the professional buyer in the company.
The internet brand
It's true that the Internet has its fans, young and ultra-curious, in search of the latest innovations – but therefore also treacherous and fickle. It is essentially a name (and its associated symbols) that has a lasting impact on buying behavior.
Country brands
We can see how the country brand and the "Made in ..." brand interact - because it is also necessary to mention "Made in". The country's brand is in competition with other countries: it must be seen, perceived to be different, reliable and attractive.
Thinking of towns as brands
Building the brand should first of all involve a consensus among the city's key players. This encapsulates the deep truth of the city's brand: a textile city, a city of creative entrepreneurs and a city of good business.
Universities and business schools are brands
Worldwide, HEC is now number 18, even ahead of Kellogg Business School (Northwestern University). This is why the HEC MBA was based on the model of the best American MBAs: two years were required to deliver quality education and to train high-level managers.
Thinking of celebrities as brands
One of the key phrases in understanding what a brand is: "a brand is anything that makes a product much more than a product". Think of the influence André Agassi has on the way American and European youth dress or cut their hair.
Thinking of television programmes as brands
Reichheld (2006) showed that the rate of promoters among the customer base is directly correlated with the growth rate of the company or the brand. This approach corresponded with the state of the market, of customers and of technology.
The limits of a certain type of marketing
As the specifications of the distributors are sometimes highly ambitious, the distributor brand product, although cheaper, may be better than the branded product. It also had a unique intangible value that commanded preference in the serious world of business: it was known as 'IBM', the.
About brand equity
The weakness of the idea of 'best product' is that it is often defined without taking the customer's point of view - i.e. without taking into account the use for which it is to be used. In the case of Coca-Cola and Danone in particular, two star brands, there has been little erosion of the image of the brand itself.
The new brand realities
Another facet of the electoral economy is what Alderson has called 'the long tail model'. Similarly, certain brands have tried to re-enter the hard discount distribution circuit, from which they had been almost by definition excluded by the founders of the concept – the German chains Aldi and Lidl.
He is interested in the profitability of his own company, not Danon or l'Oréal. Therefore, it does not make sense to multiply studies on brand awareness or brand value at the level of the final customer if the brand is no longer mentioned in the supermarket.
Brand or business model power?
This is due to their business model: the Germans launched on the basis of long-term agreements with reliable manufacturers, who could then invest in the production of a very limited number of products. The supermarkets, for their part, are resistant to anything that ties them to a single supplier in the long term; their business model is based on permanently putting pressure on their sources, and changing them at the first opportunity.
Building the brand in reverse?
In reality, to make a brand contagious – that is, to transform its first customers into spontaneous, zealous ambassadors – it is necessary to conceive the brand this way from the start. It is interesting to note that in order to relaunch Converse, Nike did not use a promotional message.
The power of passions
It is at the moment of the conception of the product or service itself (choosing the name, packaging and so on) that it is necessary to inject the sticking power and not at the end, when it is too late. This strong idea, which powers all brand activities, is communicative: it is the source of all conscious or unconscious adherences.
Beginning with the strong 360°
I Donations to good causes can show that the brand is not insensitive to the world around it. Surprisingly, this obvious Ralph Lauren ambiance is also reproduced in the brand's simple corners.
Beginning with the shop
The company must be more human, more open
However, we must remember that since 2003 Coca-Cola has reduced its television advertising investment by 10 percent and brought a wholesale innovation in terms of media. I 70 percent of investment relates to current pillar products, top sellers, to strengthen them;.
The enlarged scope of brand management
The brand becomes 'media active', it helps its customers to get in touch with each other, online or in reality through specific events. The brand must become a medium between people in society, real or virtual, and deliver more than products.
Licensing: a strategic lever
Finally, the case of J Dessange's hair and beauty chain provides an illustration of a remarkable use of licensing in its strategy to further enhance its prestige, status and desirability. Thus, a holding that requires its subsidiaries in other countries to pay royalties for the use of a company name and logo may find itself obliged to provide evidence of the value of the service provided to the subsidiary through the use of this name and logo.
How co-branding grows the business
I Co-branding is also a response to the fragmentation of the market and the emergence of communities. It is therefore distinguished from a simple partnership, which is limited both in time and in the scope of the cooperation.
Brand identity: a necessary concept
Formal aspects, appearance and overall appearance flow from the core content and intrinsic identity of the brand. The goal in this case is to specify the meaning, purpose and self-image of the brand.
Identity and positioning
There are two possible sources: brand identity, of course, but also extraneous factors ('noise') that speak in the name of the brand and thus make sense, regardless of how separate they actually are from it. Second, positioning does not reveal the full meaning of the brand, nor does it reflect its full potential.
Why brands need identity and positioning
What really sells this perfume is the satisfaction gained from participating in the symbolic world of the brand. What is the relationship between the positioning of the brand and the positioning of its products.
The six facets of brand identity
If this is not the case, does the product require repositioning or does one have to question whether it is part of the right brand at all.
