Welcome to GLOBAL BRAND MANAGEMENT

To-day

Goals
How we are going to work (syllabus) Some rules

Part I : Investigating the Brand power

PSU - 2006 - Global Brand Management - Alain Hutinel.

Me
 

Alain Hutinel Education

ESSEC MBA Keller Graduate School of Business (Indiana University)

Experience

20 years in FMCG Marketing, Colgate Palmolive & Quaker Oats 2 years MD of an IT Network Cy 15 years of Consulting and Teaching


Major interests . Teaching internationally Marketing Communications and Brand Management . Discovering new ways of marketing

Office : 260C Tu, W & Th. 503-725-3732

[email protected]
PSU - 2006 - Global Brand Management - Alain Hutinel.

You
 

Special Topics/ Interest in Brands Specific project Business actual situation ..

> lets talk and imagine

Your role : to build your own brand model so as to better anticipate what you think will happen

PSU - 2006 - Global Brand Management - Alain Hutinel.

Class materials
Course Slides + on PSU/SBA - Faculty and Staff - Alain Hutinel website & course e-mail (to-morrow)  CD-ROM  Reference book : Lane Keller, Strategic Brand Management Also : Brand Portfolio Management by D.A. Aaker

PSU - 2006 - Global Brand Management - Alain Hutinel.

                   

(some) Brand Management Websites www.pwcglobal.com/fr/fra www.tns.com www.esomar.nl www.brandweek.com www.brandchannel.com www.brandfinance.com www.milwardbrown.com www.future.sri.com www.intelliquest.com www.accenture.com www.ipa.com www.prodimarques.com www.labelmark.com www.nomen.com www.mckinseyquarterly.com www.exmarketing.com www.bec-institute.com http://www.cobranding.com www.globalbrand.org

PriceWaterhouse Taylor Nelson Sofres, Etudes, Panels, Piges . ESOMAR Recherche MArketing US magazine Interbrand The site on Branding. Brand research and survey company Research International. Millward Brown.Adverising Accenture UK Institute of Professional Advertisers French Brand Association French consultant French consultant for Brand Names search McKinsey Consultants, Bern Schmitt (Columbia U.) HighCo brand Institute partly in English co-branding offers

PSU - 2006 - Global Brand Management - Alain Hutinel.

What will be evaluated

Importance vs Completeness  Capacity to judge and build own opinion (managerial aptitudes)  Capacity to anticipate and innovate (d)  Capacity to evaluate quality of marketing activities (d)


PSU - 2006 - Global Brand Management - Alain Hutinel.

YOUR ROLES AND RESPONSIBILITIES

1. To build your own brand model 2. To anticipate what you think should happen 3. Individually, to do the required homework and participate in class debate 4. To actively contribute to group work
PSU - 2006 - Global Brand Management - Alain Hutinel.

Requirements and grading

Readings as directed  3 individual essays from readings  3 individual cases (powerpoint format only)  1 group brand audit & project


PSU - 2006 - Global Brand Management - Alain Hutinel.

Typical Reading/Essay format

       

The most important/new ideas/concepts retained by the writer(s) Critique/discussion on these ideas, on methodology, argumentation etc . Give your opinion Say what might happen 5 to 10 years from now Provoque class debate How you will apply in your brand audit 10 minutes = no more than 6/7 light slides All work in powerpoint format

PSU - 2006 - Global Brand Management - Alain Hutinel.

Course main Topics

    

Brand strategic role The Brand system Valuating the Brand Brand Equity Brand Identity

   

Managing the Brand Communicative scope Managing Brand Architecture Brand portfolio Issues Cross-cultural Branding

PSU - 2006 - Global Brand Management - Alain Hutinel.

TOTO-DAY
 Investigating,

understanding the Brand Importance to the firm  Defining the Brand  The Brand System  Defining the Brand roles  Brand Power and Value
PSU - 2006 - Global Brand Management - Alain Hutinel.

 Ultimately, Brands are all about trust

the reason consumers flock to some brands and ignore others is that behind the brand stands an unspoken promise of value. That is why brands are becoming even more important drivers of growth. That is also why Unilever wants Knorr, Skippy, Hellmanns, SlimFast and Ben & Jerry on its plate. Mukul Pandya, WSJ.
PSU - 2006 - Global Brand Management - Alain Hutinel. 12

Key trends affecting brand management & marketing !

        

Consumption, societal & cultural multimultifragmentation & globalisition Less loyal / more intelligent (?) buyer Self value-building consumption valueSearch for emotions Multiplication of offers & chanels Interactive marketing technologies Markets saturation Multiplication of touchpoints/contacts Loss of credibility of traditional media PSU - 2006 - Global Brand contacts Management - Alain Hutinel.

From USP to HSP

     

USP = Unique Selling Proposition ESP = Emotional Selling Proposition OSP = Organizational Selling Proposition BSP = Brand Selling Proposition MSP= Me Selling Proposition HSP =Holistic Selling Proposition


(Martin Lindstrom)
PSU - 2006 - Global Brand Management - Alain Hutinel.

A Brand builds its Own world



And that is a fantastic power !

PSU - 2006 - Global Brand Management - Alain Hutinel.

In this brand (!) new world, What IS a Brand and What DOES a Brand do?

PSU - 2006 - Global Brand Management - Alain Hutinel.

16

Think of Brands in your own life

1 - Think of how you became aware of them, why you bought them, why you prefer them, how you feel about them ...  2 - List them as they come to your mind  3 - Chose one brand you are very familiar with : . What does this Brand do for you? . What does it MEAN to you? . How do you relate to it ?  4 Main characteristics of a world without Brands ?

PSU - 2006 - Global Brand Management - Alain Hutinel.

What is the best

 

Who makes the best

. Automobile ?

Do you own one ?  Have you ever owned one ?  Have you ever driven one ?  Do you know anybody who owns one ?  How do you know .. It is the best ?

PSU - 2006 - Global Brand Management - Alain Hutinel.

Brand is an experience


A brand is essentially a container for a costumers complete experience with the offer and the company. (Sergio Zyman)

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

What is a Brand (shortcut) ?

User

Culture Personality

Attributes Benefits
PSU - 2006 - Global Brand Management - Alain Hutinel.

Values

The Brand as an Open System.

Corporation Economy Chanels, contacts Relationships with customers Competition

Personality .Scope .Attributes Codes/Tone .Uses Skills (Core) Offer .Quality/ (Tangible Products & Symbols Services) Value Origin .Functional User Imagery Self-expressive Benefits benefits Name Tribes Emotional benefits Cultures PSU - 2006 - Global Brand Groups Management - Alain Hutinel.

Organizations associations

This Brand System interacts AS ...

1) .. A SOCIO-ECONOMIC AGENT SOCIO2) .. A CORPORATE ASSET 3) .. A STRATEGIC MARKETING TOOL 4) .. A COMMUNICATING & SELLING AGENT
PSU - 2006 - Global Brand Management - Alain Hutinel.

THE BRAND AS A SOCIO-ECONOMIC SOCIOAGENT

PART OF EACH INDIVIDUAL S AND SOCIETAL GROUPS SET OF REFERENCES A POWERFUL SOCIAL DRIVER A GLOBAL CIMENT A VALUE ADDING ECONOMIC AGENT

PSU - 2006 - Global Brand Management - Alain Hutinel.

Coca Cola 2002.jpg

PSU - 2006 - Global Brand Management - Alain Hutinel.

Brand Strategic Role

Brand Equity

Cash flow booster

PSU - 2006 - Global Brand Management - Alain Hutinel.

Consumer Response Booster

PSU - 2006 - Global Brand Management - Alain Hutinel.

THE BRAND AS A CORPORATE ASSET

A PROTECTED PROPERTY (owner's right to use) )

BOOK VALUE, GOODWILL. ASSET that can be sold and bought MARKETING NON TANGIBLE ASSET precisely measurable and valuable (when brand is on sale) : STRENGTH , LEADERSHIP & EQUITY, ie capacity to justify price.
PSU - 2006 - Global Brand Management - Alain Hutinel.

Brand Asset Value

Source : K.L.Keller

PSU - 2006 - Global Brand Management - Alain Hutinel.

BRAND EQUITY
as a Percent of Firm Tangible Assets Industry
Apparel Tobacco Food products Chemicals Electric machinery Transportation equip. Primary metals Stone, glass, and clay
PSU - 2006 - Global Brand Management - Alain Hutinel.

Brand Equity
61 46 37 34 22 20 1 0

Brand (Market) Performance Valuation

DDB Pricing Studies  Landor Power Index  Interbrand Valuation model  Y&R Brandasset Valuator  Intangible Value Valuator  Sometimes stock market value

PSU - 2006 - Global Brand Management - Alain Hutinel.

The Landor Power Index

 

Power = strength 2 synthetic measures Awareness Esteem Share of Mind idea (cf. Share of Market Share of Voice, Share of Requirements ....)

Most influencing factor : brand perceived quality need time

PSU - 2006 - Global Brand Management - Alain Hutinel.

Interbrand BRAND VALUE Attributes

Leadership (25%)
Market share, Awareness, Positioning, Competitor Profile

Trend (10 %)
LT erformance, Projected performance, Sensibility of Plans, competition reactivity

Stability (15 %)
Longevity Coherence Consistency, brand Equity, risks

Support (10 %)
Consistency of message and spendings, Above/below the line Brand franchise

Market (10 %)
What market, Volatility size Market dynamics Barriers

Protection (5%)
Trademark registration /registrability common law, litigations/disputes

Internationality (25%)
PSU - 2006 - Global Brand Management - Alain Hutinel.

Interb.

MB

Interbrand Ranking a nd Ratio of Brand value to Firm Market Value 2002 1995 1999 2001 Interbrand va lue SM Ra nk $ bns Ra nk $ bns Ra nk $ bns Ra nk $ bns $ bns 1 Coca-Cola 39 Coca-Co 84 Coca-Cola 69 Coca-Cola 70 138 2 Marlboro 39 Microsof 57 Microsoft 65 Microsoft 64 276 3 IBM 17 IBM 44 IBM 53 IBM 51 138 4 Motorola 15 GE 34 GE 42 GE 41 309 5 HP 13 Ford 32 Nokia 35 Intel 31 185 6 Microsoft 12 Disne y 32 Intel 35 Nokia 30 68 7 Kodak 12 Intel 30 Disne y 33 Disne y 29 47 8 Budweiser 11 McDonal 26 Ford 30 McDonald's 26 38 9 Ke llogg's 11 AT&T 24 McDonald's 25 Marlboro 24 10 Ne scaf 10 Marlboro 21 AT&T 23 Mercedes 21 11 Intel 10 Nokia 21 Marlboro 22 Ford 20 32 12 Gillette 10 Mercede 18 Mercedes 22 Toyota 20 100 13 Pe psi 8 Ne scaf 18 Citibank 19 Citibank 18 223 14 GE 7 HP 17 Toyota 19 HP 17 58 15 Le vi's 7 Gillette 16 HP 18 Ame x 16 57 16 Frito-Lay 7 Kodak 15 Cisco 17 Cisco 16 116 17 Compaq 7 Ame x 17 AT&T 16 43 18 Bacardi 7 Gillette 15 Honda 15 42 19 Campbells 7 Merryll Lynch 15 Gillette 15 38 20 Pampers 6 BMW 11 Sony 15 BMW 14 29 21 Honda 15 Sony 14 53 22 BMW 14 Ne scafe 13 23 Ne scaf 13 Ora cle 12 44 24 Compaq 12 Budw eiser 11 45 25 Ora cle 12 Merrill Lynch 11 35 26 Budw eiser 11 Morgan St. 11 50 27 Kodak 11 Compaq 10 28 Merck 10 pfizer 10 217 29 Nike 8 Nintendo 9 J.P. Morgan 10 72 30 Pfizer 9 Kodak 10 10 31 Gap 9 De ll 9 70 32 De ll 8 Nintendo 9 20 33 Golma n S. 8 Mercx 9 130 34 Nike 8 Sa msung 8 35 VW 7 Nike 8 36 Ericsson 7 Gap 7 13 37 Apple 4 He inz 7 He inz 7 38 Le vi's 7 VW 7 21 39 Ke llog's 7 Goldman S. 7 36 7 15 40 MTV 7 Ke llog's 41 Ca non 7 Louis Vui. 7 26 42 Sa msung 6 SAP 7 33 43 SAP 6 Ca non 7 34 44 Ikea 4 Pe psi 6 Ikea 7 6 92 45 Xe rox 6 Pe psi 46 Ikea 6 HD 6 16 47 Pizza Hut 6 MTV 6 48 HD 6 Pizza Hut 6 49 Apple 5 KFC 5 50 Gucci 5 Apple 5 51 KFC 5 Xe rox 5 34 Ralph Lau 2 Gucci 5 24 52 53 Accenture 5 54 L'Orea l 5 48 55 Klee nex 5 56 Sun 5 22 57 Wrigle y's 5

2003 %B /SM 51 23 37 13 17 44 62 68 RANK Coca-Cola Microsoft IBM GE Intel Nokia Disne y McDonalds Marlboro Mercedes Toyota HP Citibank Ford Ame x Gillette Cisco Honda BMW Sony Ne scafe Budw eiser Pe psi Ora cle Sa msung Morgan St. Merrill lynch Pfizer De ll Merck JPMorgan nintendo Nike Kodak SAP Gap HSBC Ke llogg's Ca non He inz Goldman S. VW Ikea HD Louis Vui. MTV L'Orea l Xe rox KFC Apple Pizza Hut Accenture Gucci Klee nex Wrigle ys Colgate Avon $bns 71 65 52 42 31 29 28 25 22 21 21 20 19 17 17 16 16 16 15 13 12 12 12 11 11 11 11 11 10 9 9 8 8 8 8 8 8 7 7 7 7 7 7 7 7 6 6 6 6 6 5 5 5 5 5 5 5

2004 RANK Coca-Cola Microsoft IBM GE Intel Disne y McDonald's Nokia Toyota Marlboro Mercedes HP Citibank Ame x Gillette Cisco BMW Honda Ford Sony Sa msung pe psi Ne scafe Budw eiser De ll Merrill Lynch Morgan St. Ora cle Pfizer J.P. Morgan Nike Merck HSBC SAP Ca non kellogg's Goldman S. Gap Sieme ns Ikea HD He inz Apple Louis Vui. UBS Nintendo MTV VW L'Orea l Accenture Xe rox Wrigle y's Kodak KFC Pizza Hut Colgate Klee nex $bns 67 61 54 44 33 27 25 24 23 22 21 21 20 18 17 16 16 15 14 13 12 12 12 12 12 11.5 11.5 11 10.6 10 9.3 8.8 8.7 8.3 8.1 8 8 7.9 7.5 7.2 7.1 7 6.9 6.6 6.5 6.5 6.5 6.4 5.9 5.8 5.7 5.4 5.2 5.1 5 5 4.9

63 20 8 29 28 14 37 36 39 48 26 27 24 31 22 5 14 100 13 45 7

54 33 19 47 27 21 21 7 38

#### #### 10 23

PSU - 2006 - Global Brand Management - Alain Hutinel.

Y&R s Brandasset Valuator PowerGrid

Emerging potential

Leadership

Brand Strength

DREK
New/unfocused

DREK
Eroding Potential

DR EK

D R

EK

Brand Stature

Differenciation Relevance Esteem Knowledge

Monash University MBA - January 2002 - Prof. A. Hutinel

26

PSU - 2006 - Global Brand Management - Alain Hutinel.

Heinz Ketchup - 2000

PSU - 2006 - Global Brand Management - Alain Hutinel.

THE BRAND AS A KEY STRATEGIC MARKETING TOOL

* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE

Adaptable to changing environments and technologies * SUPPORT OF LONG-TERM TIES WITH PEOPLE LONG* ALLOWS LOWER COST for NEW ENTRIES * UNIQUE SPOKESMAN TO ALL PUBLICS

* JUSTIFIES HIGHER PRICE & MARGINS

PSU - 2006 - Global Brand Management - Alain Hutinel.

The Brand Value Chain

Value Stages  Marketing programs  Customer Mindset  Market Performance  Shareholder Value Value Multipliers  Programs Quality  Market Place & Competition Conditions  Investor Sentiment

PSU - 2006 - Global Brand Management - Alain Hutinel.

The Leading Brands: 1925 and 1985

Product
Bacon Batteries Biscuits Breakfast cereal Canned fruit Chewing gum Chocolates Flour Mint candies Paint Pipe tobacco Razors Sewing machines Shirts Shortening Soap Soft drinks Soup Tea Tires Toothpaste

Leading Brand 1925

Current Position 1985

Leader Leader Leader Leader Leader Leader No. 2 Leader Leader Leader Leader Leader Leader No. 5 Leader Leader Leader Leader Leader Leader No. 2

Swift Eveready Nabisco Kellogg Del Monte Wrigley Hershey Gold Medal Life Savers Sherwin-Williams Prince Albert Gillette Singer Manhattan Crisco Ivory Coca-Cola Campbell Lipton PSU - 2006 - Global Brand Goodyear Management - Alain Hutinel. Colgate

BRAND EQUITY & MARKETING ASSETS

RATE OF LOYALTY CAPACITY TO BUILD IT LEVEL AND SCOPE OF AWARENESS LEVEL & DISTINCTIVENESS OF PERCEIVED QUALITY MEASURED STRENGTH OF IMAGE AND IDENTITY UNIQUENESS OF PERCEIVED POSITIONNING PREFERENCE POWER OF PERCEIVED BENEFITS
PSU - 2006 - Global Brand Management - Alain Hutinel.

Building Brand Equity

Name Awareness Brand Loyalty Perceived Brand Preference Quality Associations Other Brand Brand Assets Equity Value To Firm (Name & Helps Programs Symbol)
Brand Loyalty Prices Brand Extensions Trade Leverage Competitive Advantage

Value To Customer
Info Processing Confidence in Buying Use Satisfaction
PSU - 2006 - Global Brand Management - Alain Hutinel.

P & G - Mr Propre Mr Clean

PSU - 2006 - Global Brand Management - Alain Hutinel.

THE BRAND AS A COMMUNICATING & SELLING AGENT

* A RELATIONSHIP ACTOR/BUILDER * AN INFLUENCER * IT GIVES MEANINGS TO PRODUCTS/SERVICES ... * ... AND A CREATOR OF NEW WORLDS
PSU - 2006 - Global Brand Management - Alain Hutinel.

The best Performances last longest.

PSU - 2006 - Global Brand Management - Alain Hutinel.

From Traditional Marketing Functions of the Brand Name



 

Identification Expresses the offer and is easily seen Practicality Saves times/energy thru repeat purchase & renewed satisfaction Guarantee of quality Has reputation

PSU - 2006 - Global Brand Management - Alain Hutinel.

to a powerful societal system that sells

ie : exerts influences in the market place changes consumers wants and needs sets ideals and standards helps/facilitates choice provides purchase reassurance reduces after-choice dissonance after-

     

PSU - 2006 - Global Brand Management - Alain Hutinel.

.
  

gives meanings and identity to what we use & buy helps us build our self-identity selfprovides a symbolic language through which we can express ourselves in society and be recognized and understood by others creates a longlasting relationship with consumers , at least with customers
PSU - 2006 - Global Brand Management - Alain Hutinel.

So, a modern brand is

  

A persona that overlays and includes the physical products/services the sum of fundamental values and attributes ascribed to it by people the entity that the consumers construct from the products meanings, symbols and images that they perceive as defining the brand.
PSU - 2006 - Global Brand Management - Alain Hutinel.

Evian Water brings health to all growing bodies

PSU 2006 - Global Brand Evian, approved spring -of youth for your body. Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

US - Evian. lOriginal. Approved by your body as a source of youth.

PSU - 2006 - Global Brand Management - Alain Hutinel.

PSU - 2006 - Global Brand Management - Alain Hutinel.

Many different types of brands ?

        

B2B B2C Web Trade Local Regional National International Worlwide (meta)

  

Corporate Commercial Non-business (?)

Countries Official bodies Charity org. Politics/Polticians

PSU - 2006 - Global Brand Management - Alain Hutinel.

Nestle Branding Tree

  

7500 Local Brands

Solis, Texicana, Rocky

140 Regional Brands

Contadina, Stouffers, Herta, Vittel

45 Worldwide strategic Brands

KitKat, Polo, Baci, After Eight, Coffee-Mate

10 worldwide Corporate Brands

Nestle, Carnation, Maggi, Buitoni, Perrier
PSU - 2006 - Global Brand Management - Alain Hutinel.

Nestl Branding Tree

PSU - 2006 - Global Brand Management - Alain Hutinel.

SARA LEE BRANDS

25,000 brands registered worldwide, 80% in use.  Sara Lee is eliminating R&D & Production to focus on brand development


GLOBAL REGINAL LOCAL BRANDS

PSU - 2006 - Global Brand Management - Alain Hutinel.

Sara Lee Brand Hierarchy

From Traditional to Experiential Branding

From  Brands as identifiers  Names, logos, slogans build awareness and image
TO  Brands as experience providers  Names, logos, slogans, events, customer contacts which build sensory, affective, creative relations and ways of being (lifestyles) with the brands

PSU - 2006 - Global Brand Management - Alain Hutinel.