Please enable JavaScript.
Coggle requires JavaScript to display documents.
L2/4: Strategic Brand Managment Process (Value Creation (Customer Value…
L2/4: Strategic Brand Managment Process
Step 1: Identify and Establish Brand Positioning Values
Brand Equity Pyramid
Identity: Brand Salience/Awareness
Unique Selling Proposition: who are you?
Depth: Ease of recognition and recall
Breadth: Consumption situations e.g. Gymshark only in gym or everyday life situations?
Brand Meaning
Rational: Performance
How well are customer needs met
Primary characteristics and &supplementary features
Product reliability, durability, serviceability,
Service effectiveness, efficiency and empathy
Style and design
Price
Emotional: Imagery
Does brand imagery correspond to performance? e.g. Patagonia: Recycled, durable products, company is committed to several environmental programs and social causes (Simplicity often most effective for strong brand association)
Brand Response
Rational: Judgement
Judgements on quality, credibility, consideration, superiosity
Emotional: Feelings
What feelings does the product/service evokes: warmth, fun, excitement, security, social approval, self-respect
Resonance: Relationship
behavioural loyalty, attitudinal attachment, sense of community, active engagement (little gifts, customer relationship management, loyalty programs, community
Best Cases: e.g. Harley Davidson, Apple, Nike
Building Lovemarks (Saatchi&Saatchi) through Mystery, Sensuality, Intimacy
Case: Orange --> bought for 20b instead of One2One for 6.9b
Simplicity: Conference calling, prepay service, own off-peak, global flat rate, charge by second, great customer service
Case Study: Coke
Value Creation
Customer Value Ratio
Value = benefits/price
Benefits: All tangible and intangible attributes of the brand
Price: All tangible and intangible costs to the customer
Superior perceived value: Customer perceives higher value than any competitive brand
Example: Electric Car
Benefits: Economically friendly, consciusness, governmental policies
Price: Limited reach, change in behaviour
Example: Online groceries
Benefits: Convenience
Price: Being home when it comes
Behavioural change
Money often not prime reason
Endowment effect: Over-value current behaviour which costs energy to change, out of comfort zone
Example: Conputer typing is actually inefficient but we stick to it
Allrounder or Specialist
Best to have a bit of both
Good product, experience, access (acceptable at all levels) and then one area to excel in
Better to focus on brand relevancy
Myth of excellence: That brand needs to be good at everything
Competitive advantage
Competition metrics
Product
Service
Experience
Access
Price
Rules
Rule 1: Dominate one dimension, differentiate on second, achieve industry-par level on remaining
Rule 2: Anything less than 3 is not sustainable
Rule 3: Domination/Differentiation on more than one is not sustainable, wasting ressources
Rule 4: An industry par level (3) can constantly change. Failure to keep up may leads to score drop
Brand positioning (After Value proposition is articulated)
Brand positioning architecture
Company wide positioning
Brand
Product Market
Product
Example: General Motors
Buick
LaCrosse
LaCrosse CX
LaCrosse CXL
LaCrosse CXS
Perceptual mapping
Visual tool to depict perceptual differences among brands from consumer's perspective
e.g. watch industry
Dimensions: High price-Low price/ design-technical
Sports/modern vs. tradition
Process of establishing Brand Positioning
Definition of competitive frame/reference
Target market and segmentation
Nature of competition
Definition of position basis
Points of difference
Points of parity
Category POP
Head & shoulders combines Shampoo/soap
Competitive POP
Saab challenges competitor (Volvo)
Differentiation
PoD: Desirability
Relevance
Distinctiveness
Believability
PoD: Deliverability
Feasibility
Communicability
Sustainability
Challenges of PoD
Negative correlation
Low price vs. high quality
Taste vs. low calories
Nutritious vs good tasting
powerfull vs. safe
Ubiquitous (allgegenwärtig vs exclusive)
Brands need to perform well on both dimensions
Examples: BMW: Tradition vs. Dynamic, Apple: Power vs. Userfriendliness
Swatch Case Study
First there were high end traditional swiss watches
high involvement, quality, pricey, jewellery
Second: TimeX
Disposable, plastic, cheap, low-end, tool, low-involvement
Third: Japanese digital Quartz watches
Technology, low price, japanese pushed more and more into luxury segment with seiko
Solution Swatch: Fast fashion, low-involvement, cheap