Quiz 3 - Strategic Brand Management
Country Managers could create their own advertising message so long as the positioning was....
"Premium"
Pro's of using CK in the 30th anniversary ad
- CK very well known (Super Bowl QB) - viral and social media following (athletes and celebrities) - millennial target market - brand loyalty - Shows Nike is more than just shoes - shows trust and true relationship between Nike and CK
Global Branding decisions hinge upon...;
--Global imagery! --Global imagery decisions impacted by how brands are extended and/or accepted across geographies
Unify & Aqua "Project"Conclusions
--No Big Idea to push creative, breakthrough advertising --Many countries Harmonie is well established --Premium water for special occasions --Social settings where Friends impressions are important --Consumers see it as a premium water "daily"choice --May not become a "go-to" daily consumption water brand --Best growth strategy is to grow the "premium" water category
What is international brand planning?
--Process is consistent and applied in all markets --Begins with market research to deeply dive to: customers, competitors and brand --Data, attitudes, beliefs, values --Avoid a "me-too" approach --Clear Brand Identity and CVP and an adaptive brand personality by country --Never in conflict with personalities developed in neighboring countries --Brand Equity Analysis - measurement and goals --Global Strategy must be linked to a local strategy
How a country should share insights and "best practices"
--System wide shared market knowledge & communication to illustrate, inform, and inspect what "works and what doesn't" --Transparency a welcome partner
Lafley's Third Inflection Point:
--When emotions and passions cause people to "talk about the brand --Social media allows for a bridge between brand and consumer that builds "trust" --But may force brands to then cede partial control of the messaging to a C2C (Consumer-to consumer) network
What is Nikes core identity
-Athletics -Innovation -Quality -Health
"Consider" in the Customer Decision Journey
-Awareness: Aaker's 1st stage in the buying process -New media options have reduced the number of consideration brands compared to the traditional era of marketing
"Evaluate" in the Customer Decision Journey
-funnel actually expands as consumers voice their consideration set: adds some, removes some -consumers reach out to both brands and consumers
What is a brand crises?
A brand crisis is when your brand image, brand reputation, and equity get threatened, altering customers 'perceptions and brand loyalty. A brand crisis could range from releasing tone-deaf branding or marketing campaigns.
What is the customer experience journey?
A map that tells the story of the customer's experience:from initial contact, through the process of engagement and into a long-term relationship -provide a sense of the customer's greater motivation -infographic
What is owned media?
Brand managed and/or brand controlled elements of its consumer awareness -Websites, packaging, sales, customer service, catalogs, ads
"Buy" in the Customer Decision Journey
CVP becomes an increasingly key element in the actual decision
Cons for positioning Harmonie as a Global Brand
Cons: -Local variations in brand attributes dominate members -Product and service consistency too varied -Customer needsvaried by region andconsumption rates
What is the loyalty loop?
Enjoy, advocate, bond
Does Harmonie Water; International Structure allow it to become a Global brand?
Firm Based Characteristics -- Administrative Heritage --International expansion strategy --Corporate identity Product-Market factors --Nature and scope of the target market --Cultural associations --Market structure Market Dynamics --Political and Economic integration --Infrastructure --Consumer mobility
CEO A.G. Lafley's "three moments of truth" (20 years earlier than that)
First: What consumers see on the shelf Second: what happens when they try the product Third: infection point when the product experience drives an EMOTION, CURIOSITY, PASSION, AND EVEN ANGER to TALK about the brand
What do we recommend?
Global Positioning Splitting it up into two different market segments (developed & underdeveloped countries) Not a "one-size fits all" approach
What is the solutions to global branding... GLOBAL LEADERSHIP
Global leadership! -- country (continent) sharing of insights and "best practices" -- unified global brand process -- managerial responsibility that welcomes differences - BUT restricts bias -- consensus built strategy -- execution
What are the two things she claims leads to brand trust?
Google authority + influence
Integrated Marketing Communications:
IMC = offline + online Offline: spoke word transmitted through traditional channels (word of mouth) Online: spoken word transmitted through digital format
What is earned media?
Independent of, and minimally (if at all), controlled marketer interaction E-communities, blogs, discussion boards, chat rooms, forums, etc
But... strategic brand managers need to embrace the difference between information & meaning
Information: is narrow; content is noise, often quantifiable and/or measurable but not always processed Meaning: wider view; context is everything; requires judgement and meaning --meaning implies opinions & interactions of the MANY
Conundrum: II - "Consumer permission"
Instead of trying to create destinations that people will come too, brands now need to use the power and reach of the Internet to deliver tailored messages and information to customers at the point of need. Strategic brand managers need to become contextual marketers!
The Customer Decision Journey
Loyalty loop = ENJOY ADVOCATE BOND
What is a hybrid international brand structure
Mix of global, regional, and national product level brands tocreate a strategic set of global Brand Equity building tactics
What is Nikes extended identity
NFL MLB Global Logo Community Style Online Apparel Celebrities Entertainment Running
What is Harmonie's target market?
Premium - definitions varied by manufacturer; e.g. enhanced minerals, purity, pH level, packaging, & price --Mostly sold in Western Europe and North America --Emerging markets middle class experiencing growth in "premium"
Is McDonalds a global brand?
Products have different meanings and sell differently in different countries -Big Mac in Moscow = sign of status & wealth
Digital Purchase Funnel
There is NO funnel consumer purchase process is all over the place LOSS OF CONTROL
Traditional Purchase Funnel versus Digital Purchase Funnel
Traditional: -linear -1 way conversation -brand-centric "push" model -increased # of buyers triggers expanded targeted reach Digital: -circular -2 way conversation -consumer centric "pull" model -Explosion of opinions of users & non-users triggers "exponential" targeted reach
T or F: Local or regional brands can ‒ and often do ‒ have greater power than massive global brand
True
What is Corporate Dominant?
Typical choice of "Branded House" architecture organizations
Harmonie Ad and messaging strategy was determined on a country-by-country basis calculating PCC and Harmonie's market share, along with its competitive position: how?
if per capita consumption & market share = low.... ad strategy focused on CVP if per capita consumption & market share = high... ad strategy focused on occasion
What is Harmonie's core identity
purity, premium, quality, France, authentic & natural filtration method
What to look for in brand mapping
- Strength in home market - Geographical sales balance - consistent marketing execution across cultures - address similar consumer needs worldwide - consumers value country of origin - consistent name, easy to pronounce
Con's of using CK in the 30th anniversary ad
- US Centric "hot-button" issue - "most hated athlete" - Could lose NFL - segment dis-affection - trying Nike to a profit-opportunity; instead of social cause
Nike tools
- brand identity - corporate dominate global brand strategy - SOV = SOM - Web 2.0 DTC emphasis -- online selling channels and technology investments
Nike situational analysis
- just do it campaign - first launched spring 1988 - 2018: North American revenues flat; sales and profit growth coming from international markets -- brand facing some elements of its extended identity that were not complimentary to its core --- supporting athletes whose characters was in conflict with Nike BI. Seeing athletes for breach of contract, gender discrimination, worker rights, fair-trade
Nike: Colin K segment reaction
- millennials - politically motivated consumers - belief driven buyers - emerging (non-USA) market consumers
What are some roadblocks to Global Branding?
-- Economies of scale are hard to achieve -- Cultural nuance can be market shattering (language interpretation) -- Management solidarity -- Brand Meaning
Nigel Hollis definition of "Global Brand"
--A brand that has transcended its cultural origins to develop relationships with different consumers across countries and cultures --A Global brand must have an identity that is clearly understood, and then communicated by -- and to -- all constituents --Local interpretations must mirror the core brand identity - no exceptions --Many may claim, few are able to receive
Harmonie Water Case: Situational Analysis
--Competitive Market began in Western Europe and demand (functional, emotional, and/or self-expressive) has spread worldwide --consumption rates have increased over 30% --Highest Consumption Region: Asia Pacific --Fastest growing consumption region: Middle East & Africa --Rates vary globally: by total volume & per capita consumption --Developed regions/nations - water is for hydration, vitamins, minerals, heath & wellness, status, etc. (e.g. NA & Europe). Brand has significance and helps drive market share. Functional + emotional + self-expressive benefits --Undeveloped regions/nations - necessity due to the unsafe drinking water (e.g.Eastern Europe & Australasia). Brand has minimal significance, functional benefits dominate.
What are the principles of modern marketing?
--Data (offline & offline) --Creativity (can be a marriage between brand and consumer or even collaborative partners) --Brand to customer relationship is changing to "SHARED" brand owner relationship (brand transparency takes a greater role; need to understand why they behave and what motivates them to action) --Experience is a brand's competitive differentiator (education, transaction, post purchase, interactivity) --Value (re) definition - CVP (value includes not only what you get for money but the non-functional benefits and costs that provide long-term balance to CVP) --Leadership (CMO make-up includes being the consumer-champion, optimizer of brand relationships and data driven risk taker) --Brand's need a bigger purpose (social media can be the brand differentiator) --3rd party providers (core digital competencies are essential and rarely are found within all but the biggest of organizations)
How is technology a disrupter?
--Disrupting the "traditional" best practices of marketing strategies --Not just numbers; but includes process & people in order tooptimize the benefits provided by expanding data & methods
How is technology an enabler?
--Generating opportunities for marketeers to recognize and optimize the level of consumer experiences attached to (and with) a brand --And..., then sharing those experiences between brand & consumer becomes a true competitive differentiator --embrace opportunity to drive consumer loyalty and maximize ROI
Harmonie Situational Analysis:
--Harmonie = 2nd best selling bottled water in France --Sold in 130 countries --Global market share varies by region (20% in Western Europe, 19% in Latin America, 53% Asia Pacific, 1% in North America)
Global Positioning definition from slides
--Keys on individual target markets & conditions --Keys on identifying unique consumer insight(s) that may have global application and will influence customers; but... often reflects local market cultures and adaptations --Never conflict with brand identity
How do global brands assign responsibilty?
--Management roles need be clearly defined --tricky part: human factor often brings a strong reluctance to follow the lead of foreigners --Local leaders are convinced that their market is unique and only they know the pathway to growth
Loreal (II) case: About the Hair Care Industry
-Competitive; expanding to many demographics -Many competitors -Hair care global market expected to grow by billions of dollars -Increase in concern about environmental contaminants, especially young millennials -More men becoming interested in keeping their hair healthy and full -Luxury hair care brands are focusing on self-expression (brand name and recognition are gaining importance)
Loreal (II) case: What are the effects of social media on the hair care industry?
-Consumers sharing more intimate details about their product usage and personal preferences with online audience -internet and use of mobile devices has allowed for two way communication with consumers and for brands to reach target consumers with surveys and communications -Influencers have power to encourage brand switching -Social media has enabled success for niche and independent (indie) brands such as Drunk Elephant and Function of Beauty (they build personal relationships with customers on social media) -Social media can add authenticity & trust, gain unique consumers insights,and keep a brand engaged & collaborating with its consumers "in themoment"
What are the 3 common international brand structures?
-Corporate Dominant -Product Dominant -Hybrid
Global Brand Building Best Practices
-Country (continent) sharing of insights and "best practices" -International Brand Planning -Assign responsibility -consistency in market-to-market identity and imagery is essential -International structures must maintain a long-term vision and enforce its core identity
Takeaways from Gayle Perry:
-Influencers provide: Trust & Authenticity -She makes style accessible -"Gayle Tuck" - she kept saying it with conviction and it worked -Her key to success is engaging with her audience; talking to them -Very inclusive page -She supports her followers -Has built trust with her followers -She sends products back that she does not like (she is honest)
Situational Analysis Continued:
-Local brand(s) dominate in home market --USA: Aquafina, Dasani, Poland Spring --China: Master King, Mizone, C'estbon -Global bottled water producers own brands around world --Nestle (owns 64 brands; Pure Life, Perrier, San Pellegrino) and Pure Life is #1 in the world in terms of market share --Danone (Evian); Suntory Water Group; Coca Cola (Dasani);Pepsi Cola (Aquafina) -Bottled Water Marketing Strategies --rice: HIGH to signal "prestiege"; LOW to gain "market share"
Notes from Ms. Lynne Montesanto (Boston Magazine)
-Print is not only surviving but thriving -People tend to be loyal to magazines -consumers can relax and engage deeper (no distractions) -"Reading a magazine is an experience" -benefit: brand trust -Use both online and offline techniques -Boston magazine guides Bostonians to their best quality life (they are a resource) -Their key to success: "best of Boston" awards - brands or restaurants that win showcase it - they have google authority -magazine uses both traditional and online methods to gather survey data -they stay relevant to audience by talking to them (asking for feedback) -programs on social as well as print
Gohil's ideas: (look at notes/slides)
-Rebirth of the Beauty Babble Program (influencers, "club" like feeling with perks) -Agile customer relationship system (influencers are trusted and add authenticity to brand) -ability to track new KPI's (which ones should be used to track performance) -Strong digital first strategy (makeup genius app, video content, increase use of social media, mobile use technology) -Build versus Buy
The role of Sports Sponsorship in the brand management toolbox
-Sports drive culture -Sponsorship evokes passion and imagery -Sports are TV viewing occasions -Sports are "appointment" events -Entertainment unites adverse customers -Athletes and entertainers are icons -Retailers/Customers want sports (it bridges all ethnic and groups and demographics) -Sporting events attract significant onsite audiences
When a brand affiliates with an athlete/event/team, now what?
-Team or player or venue must compliment brands core values and brand personality --identity of the athlete must parallel (or duplicate) the values of the brand --Athlete MUST understand and embrace the identity, goals, and objectives of the brand -Like any tool, use of sports marketing needs to have a strategic horizon that links to the long-term development of the brand's identity; followed by -- tactical executions to communicate the athlete et al. and the brand (brand communication model) -- must be adequately funded
What did P&G do?
-They created a new brand extension of the Dawn Brand (DAWN POWER WASH) -They used the same kind of ad as Cinch What kind of brand architecture is this?: BRANDED HOUSE WITH DESCRIPTOR (parent brand Dawn maintains the driver role which "power dissolver" acts to define)
Digital Media -- 20 years ago
-Traditional marketing models we all grew up with are obsolete - Stengel -"For the first time the consumer is boss, which is fascinatingly frightening, scary and terrifying, because everything we used to do, everything we used to know, will no longer work." - Roberts - why? Power of trendsetting + the power of BEING a trendsetter - A Traditional media aspiration
How is sports "universal"?
-Winning is universal! -sports as a language is universal and travels seamlessly across geographic borders, culture, and societies: ergo, a GLOBAL branding tool • "Often, personality is the only thing between your brand and the competition."
What are the 3 factors that International Branding Structure is affected by?
1) Firm-based characteristics 2) Product-market factors 3) Market Dynamics
What is Harmonie's extended identiy
10 year maturation process, daily testing, 130 country distribution, mountain sourced, use occasion, management structure
Fuzzy Definition: Global Branding
A strategic, analytical and well thought-out marketing and image driven identity structure that serves a brand as it attempts to cross (expand) national boundaries, cultures, and consumers.
What is paid media?
A variable expense level of avenues that the marketers have selected to "push" messages to its target group TV, radio, print, magazine, newspaper, etc
Sports Marketing (Fuzzy Definition)
An effective strategic marketing tool that offers brands an opportunity to acquire rights to affiliate directly with an athlete, event, team, venue, league, etc., and link its Brand Identity to the property Creates a symbiotic relationship where each party's brand is "extended" to one another; thereby transferring the energy, passion, and excitement which accompanies all sports activities at all levels
Key takeaway from her presentation:
Do not underestimate power of traditional media Print is not the coolest person but it loyal and trustworthy and shares your passions and gives good advice and will be there whenever you want him/her. Your parent loves this friend.
What is project Aqua?
Focusing its core identity on two prominent values: revitalizing & refined
Why should sports marketing be part of the toolbox?
Harness the passion behind sports to leverage and transfer "fan attachment", i.e. the emotional & self-expressive benefits that consumers assign to the brands of teams, athletes, leagues, venues and events
Strategic Brand Marketer's Conundrum: I
How to navigate the consumer shift away from traditional media (tricky & risky) --TV: network & cable - consumers shun away from commercials as they lack value; Print revenue & circulation waning --Why? Consumers demand/receive information they "trust" from digital Web 2.0 sources; when & where they want it What is important?... TRUST
Another relevant example for Adidas and... ?
Kanye West Adidas terminates Yeezy items Kanye West has made antisemitic comments
Global Branding definition from slides
Overriding multi-national brand identity that informs and molds what image the brand wishes to develop in the minds of its global consumer Example: Apple
Conundrum III: how to navigate today's media?
Paid v. owned v. earned
What did the projects attempt?
Projects initiated in an attempt to standardize Harmonie's global premium brand identity and imagery, i.e. target consumer, brand positioning, communications and advertising
Pros for positioning Harmonie as a Global Brand
Pros: -Single brand identity and position -Economies of scale in operations -Marketing leverage
What happened to H-80?
Sold to Shansby Group It was repositioned to a glass, kitchen, and bath product
The Role of Sports Sponsorship..., even haspolitical implications & opportunities
South Korean President Moon Jae-in hopes Winter Olympics brings 'inter-Korean peace'
What did digital marketing do to Lafley's 3rd step
Sped it up! Every member of the "social media chain" has the freedom to accept, reject, amend, magnify, or minimize, etc., the message
How does it tap into the brand-relationship model?
Sports marketing allows brands to become friends and teammates with athletes, teams, leagues, etc., and its' followers -- forging enduring relationships
Can Harmonie water become a global brand?
Strength in home market: yes Geographical sales balance: no Consistent marketing execution across cultures: no Address similar needs worldwide: no Consumers value country of origin: Yes Consistent name, easy to pronounce: Yes
What is Project Unify?
Summation of the multiple consumer associations around the world of the brand
What are firm-based characteristics
Traced back to past practices
What is Product Dominant?
Typical choice of "House of Brands" architecture organizations --Global expansion often features Power Brands
Digital Media's Value Proposition
Ven Diagram: Left: customization (the right information Right: convenience: when you want it Middle: New Media's sweet spot (CONTEXTUAL MARKETING)
How does the Consumer Decision Journey Reframe "the funnel"
consider evaluate buy loyalty loop
Customer Journey Approach (NEO-TRADITIONAL)
consider, evaluate, buy <--> enjoy, advocate, bond Brand manager SHARES CONTROL
How are 2.0 marketing tactics via the Web similar in one respect to traditional advertising?
consumer persuasion to buy a product or service YET IT GOES FURTHER b/c it allows for consumer to become actually involved in that purchase
What is happening to traditional mass media?
continue to decline in effectiveness! Only 18%* of television advertising campaigns generate a positive return on annual investment
Data is now the...?
gold key
Traditional 1-way approach:
many brands --> fewer brands --> final choice --> purchase BRAND MANAGER HAS CONTROL
What are product-market factors
nature & scope of target market
What is the caution! (red flag)
negative publicity could conflict or blow back on brand Brand relationship model (circumstances & images change quickly) example: Tiger Woods (infidelity scandal)
Digital Marketing gives power to the...?
people
What are market dynamics?
political and economic integration (tariffs, local requirements, etc.)
Customer journey map...
puts the user front and center in the organization's thinking. It shows how mobile, social media and the web have changed customer behavior The process has to begin with getting to know users via traditional "DSS" Tools; aka Perception & Preference -Add to that data; social media analytics
H-80 today:
they followed Reis and made Cinch an independent brand Reminder: size of the opportunity governs, independent brand needs to scream innovation; "me-too" leans toward brand extension; will the consumer give permission to extend
What about Dunkin Donuts?
worlds leading baked goods and coffee chain --China (dried pork and seaweed) --UAE (vanilla w/ date sauce --Japan (mochi rice)