Branding: A Product Strategy PDF

BRANDING: A Product Strategy Prepared by: Reissa Joselle D. Gopez, MBA When you see this word, what image comes to mind? Frog. I bet this wasn’t it. For most people, a Green Tree Frog is the first image that comes to mind.  Yet there are around 47...

BRANDING: A Product Strategy Prepared by: Reissa Joselle D. Gopez, MBA When you see this word, what image comes to mind? Frog. I bet this wasn’t it. For most people, a Green Tree Frog is the first image that comes to mind.  Yet there are around 4700 frog species in the world, and not all of them are green. The Green Tree Frog owns the frog ‘brand’. SO WHAT IS A BRAND? An OVERALL mental image in the minds of people. That’s it, not a logo, graphics or slogans, not a product – it is simply an idea.  The term derives from the Old Norse word brandr or “to burn,” and refers to the HISTORY practice of branding livestock, which dates back more than 4,000 years to the Indus Valley, some in Germany. THE BIRTH OF CORPORATE BRANDS James Walter Thompson BULOVA CLOCKS -1941, first TV Commercial reaching 4000 TV sets  üA proprietary name like Natori or Microsoft üA nickname like McDo or Pacman üA group of letters like “HBC” or “CDO” üA group of numbers like “555” sardines or “501” jeans üA group of letters and numbers like 7-UP and C2 A brand is a… üColor Association like Kodak’s yellow and Milo’s green üA symbol such as the golden arches of Mcdonalds or the Swoosh of Nike üUnique shape of packaging like Toblerone’s triangle or the Kisses’ tear shape üA combination of the above. A BRAND IS NOT JUST A NAME. A proprietary name like Google or Microsoft. A nickname like McDo or Pacman.  A group of letters like “HBC” or “CDO”. A group of numbers like “555” sardines or “501” jeans A group of letters and numbers like 7-UP and C2. Color Association like Kodak’s yellow and Milo’s green. A symbol such as the golden arches of Mcdonalds or the Swoosh of Nike. Unique shape of packaging like Toblerone’s triangle or the Kisses’ tear shape. A combination of the above. When these elements are combined effectively, they represent a powerful symbol to the consumer. üThis symbols represents both a rational and emotional relationship between a product and the consumer. ENTERTAINMENT üThe relationship is formed not only by the way of consumer perception about a brand but also in the consumer perception of the brand’s attitudes toward them. üThe brand-consumer relationship is strengthened by the continuous ability of a brand to satisfy consumer needs and motivate consumer wants. üIt is equally important to consider what messages and actions the brand undertakes and how these messages and actions are communicated to consumers.  Why do brands exist? IDENTIFICATION PROTECTION POSITIONING Identification enable consumers to easily distinguish one product from another. *Alaska created sub- brands to distinguish premium product (evaporated milk) from its low price product (evaporada). Alaska boy for the premium and halo- halo and fruit salad picture for the low-priced. Protection enables the owner of the brand name to enjoy the goodwill associated with the name so as not to be taken advantage by others. Levi's jeans have been resorting to the legal remedy of running after unscrupulous individuals and companies faking their brand.  Positioning enables the owner to communicate the benefits of his product vis-à-vis competition. Bruno’s Barbershop chain adopted such a name as it’s immediately conveys masculinity.  “BRANDING is the process of differentiating yourself from the competition. The ability of any company to compete and deliver sustainable, profitable growth largely depends on the power of its brands!” -D. Gomez, JFC BRANDS VERSUS PRODUCTS  PRODUCTS CAN BE EASILY COPIED BY COMPETITORS. A BRAND, HOWEVER, CANNOT. A product is anything we can offer to a market for attention, acquisition, use, or consumption that might satisfy a need or want and may give the company a profit. A brand is more than a product, because it can have dimensions that differentiate it in some way from other products designed to satisfy the same need. These differences may be rational and tangible—related to product performance of the brand—or more symbolic, emotional, and intangible—related to what the brand represents. LEVELS OF PRODUCT CORE BENEFIT: The fundamental level. It is the service or benefit the customer is really buying. BASIC PRODUCT (GENERIC): What specifically the actual product is. EXPECTED PRODUCT: A set of attributes and conditions buyers normally expect when they purchase a product. AUGMENTED PRODUCT: A product that includes features that go beyond consumer expectations and differentiate the product from competitors. POTENTIAL PRODUCT: All the impossible augmentations and transformations the product or offering might undergo in the future. 1. Core Benefit The core benefit of Coca-Cola is to quench a thirst. 2. Generic Product The generic product is a burnt vanilla smelling, black, carbonated, and sweetened fizzy drink. 3. Expected Product The expected product is that the customer’s Coca-Cola is cold. If this isn’t the case then expectations won’t be met and the drink will not taste its best in the mind of the customer. 4. Augmented Product Coca-Cola’s augmented product is that it offers Diet-Coke. How does Coca-Cola exceed customers expectations with this product? By offering all the great taste of Coca-Cola, but with zero calories. 5. Potential Product One way in which Coca-Cola delights customers is by running competitions. The prizes in these competitions are often things that, “money can’t buy”, such as celebrity experiences. To continue to delight customers over time the competition prizes change frequently. ROLES THAT BRANDS PLAY Consumers Identification of source of product (symbols to remember) Assignment of responsibility to product (Consumers remember the good and bad experiences) Risk reducer (Consumers buy the product they know) Search cost reducer (consumer recognize the brand and have knowledge about it, then they do not have to engage in a lot of additional thought or processing of information to make a purchase decision) Promise, bond, or pact with maker of product (the relationship between a brand and a consumer: consumers offer their trust and loyalty) Symbolic device (emotional and self-expressive capabilities of brands) Signal of quality (buyers assume a branded offering is better because the seller has invested in telling them that it is) ROLES THAT BRANDS PLAY Manufacturers Means of identification to simplify handling or tracing (Branding helps position a product in terms of price, quality, status, etc.) Means of legally protecting unique features (Brand protection-intellectual property) Signal of quality level to satisfied customers (Develop community of customers) Means of endowing products with unique associations (competitive advantage) Source of competitive advantage (core competency) Source of financial returns (profitable)  What makes a strong brand? 1. PASSION & WHY 2. DEFINE YOUR 3. IDENTIFY YOUR 4. CREATE A 5. DEVELOP A CLEAR CLEAR BRAND TARGET MARKET CLEAR AND MARKETING PROMISE CONSISTENT DESIGN STRATEGY https://www.leightoninteractive.com/blog/five-components-of-a-strong-brand-an-infographic WHAT ARE THE 1. Apple — brand value: $234.2 million STRONGEST 2. Google — brand value: $167.7 million BRANDS? 3. Amazon — brand value: $125 million These are the 4. Microsoft — brand value: $108.8 million top 10 brands 5. Coca-Cola — brand value: $63.4 million 6. Samsung — brand value: $61 million in the world in 7. Toyota — brand value: $56.2 million 2019. 8. Mercedes-Benz — brand value: $50.8 million 9. McDonald's — brand value: $44.53 million 10. Disney — brand value: $44.3 million  Top Index Rankings Rank Brand 1 Google 2 Whatsapp YouGov's 3 YouTube 4 Samsung 5 Facebook Global Brand 6 Amazon 7 IKEA 8 NIKE Health 9 Paypal 10 Netflix 11 Adidas Rankings 12 Uniqlo 13 Lego 14 Colgate 15 Almarai 16 Panasonic 17 Tylenol 18 LG 19 Visa 20 TOYOTA  2019 Rank Brand Score 1 Samsung 64.8 2 Colgate Toothpaste 57.7 3 Philippine Airlines 50.7 The Index Rankings chart 4 Oreo 47.8 shows the brands with the 5 Rebisco 43.0 highest average Index scores for the 12month period 6 Facebook 41.0 from July 1, 2018 through 7 LG 40.7 June 30, 2019--Philippines. 8 Jack 'n' Jill 40.4 (YouGov’s Brand Health) 9 Cream Silk 39.9 10 Google 39.4 Reader’s Digest recognizing the most trusted brands in the Philippines.  THE BRAND EQUITY CONCEPT Brand equity refers to a value premium that a company generates from a product with a recognizable name when compared to a generic equivalent. Companies can create brand equity for their products by making them memorable, easily recognizable, and superior in quality and reliability. Mass marketing campaigns also help to create brand equity.  When a company has positive brand equity, customers willingly pay a high price for its products, even though they could get the same thing from a competitor for less. Customers, in effect, pay a price premium to do business with a firm they know and admire. Because the company with brand equity does not incur a higher expense than its competitors to produce the product and bring it to market, the difference in price goes to margin. The firm's brand equity enables it to make a bigger profit on each sale.  Is it the recognition? Brand equity is an extension of brand recognition, but more-so than recognition, brand equity is the added value in a particular name. Some companies with strong brand equity STRATEGIC BRAND MANAGEMENT PROCESS 01 02 03 04 Identifying and Designing and Measuring and Growing and Developing Implementing Interpreting Sustaining Brand Brand Plans Brand Marketing Brand Equity Programs Performance  Customer-Based Brand Equity Customer-based brand equity (CBBE) is used to show how a brand’s success can be directly attributed to customers’ attitudes towards that brand. The best-known CBBE model is the Keller Model, devised by Professor of Marketing Kevin Lane Keller and published in his mighty Strategic Brand Management.  The Keller model is a pyramid shape and shows businesses how to build from a strong foundation of brand identity upwards towards the holy grail of brand equity ‘resonance’: where customers are in a sufficiently positive relationship with a brand to be advocates for it.