1. Brand Audit
Ashley M. Orndoff
Marissa Burkett
Nigar Kanji
Alex Higgins
Global Branding
Study Abroad-Brazil Courses
April 2009

2. What Is H.Stern?
• http://www.youtube.com/watch?v=q2w
S_V2QE1I

3. Foundations for Building Marketing Strategy
Customer Knowledge
• H. Stern is a family owned jeweler that first
opened its doors in 1945.
• The company focuses on pairing the finest
quality jewels with the most innovative design.
• When asked about H. Stern, customers might
describe the company as “unique,” “high-
status,” and “luxurious.”

4. Consumer Reports
Advertising Consumer
Identification of Brand
Brand with Brand
Merchandising Recognition Brand Company, County, Ch Equity
Awareness annel, Person, Place
Sponsorship Brand Recall
Brand Differential Customer
Customer
Knowledge Effect Based
Loyalty Brand
Word of Mouth BOND Equity
Brand
Image
Service
Brand Support
Performance
Perceptions Associations Value for
money
Value Proposition Value Value Value Brand
Creation Satisfaction Commitment Value
Customer Targeting Company Strong
Favorable
Unique
I want H.
Stern’s
Competitors Elegance!
Shareholder
Value

5. Independent Variables
Variable Operational Applied by
Definition H. Stern
Any paid form of non personal H.Stern’s entity (magazine,
Advertising presentation and promotion of spa, restaurant), Celebrities
ideas, goods, or services by an (Grammy’s Oscars)
unidentified sponsor.
A term of many varied and not
Merchandising generally adopted meanings. It
can (1) relate to the promotional
activities of manufacturers that
bring about in-store displays, or
(2) identify the product and
product line decisions of retailers.
Advertising that seeks to Endorsements: Celebrities
Sponsorship establish a deeper association (Grammy’s, Oscars, Red Carpet
and integration between an Events)
advertiser and a publisher,
often involving coordinated
beyond-the-banner
placements.
Personal communication about Relying on the customers to
Word of Mouth a product between target share their interpretation of
buyers and neighbor, friends, HStern
family members, and 5
associates

6. Independent Variables
Variable Operational Applied by
Definition H. Stern
The attributes and benefits that
Associations characterize the most
important aspects or •Points of Difference
dimensions of a brand. They •Associations
can serve as the basis of brand •Points of Parity Associations
positioning in terms of how
they create points of parity
and points of difference.
Based on prior attitudes, •Luxurious
Perceptions beliefs, needs, stimulus •High-end
factors, and situational •High social status
determinants, individuals •Elegant
perceive objects, events, or
people in the world about them.
Perception is the cognitive
impression that is formed of
"reality" which in turn
influences the individual's
actions and behavior toward
that object.
6

7. Independent Variables
Variable Operational Applied by
Definition H. Stern
The act of designing the •Custom Made to Order
Positioning company’s offer and image •Innovative Design
so that it occupies a distinct
and valued place in the
target customer’s minds.
A market covered strategy in Image Differentiation:
Differentiation which a firm decides to luxurious, elegance
target several market
Service Differentiation: family
segments and designs owned and operated
separate offers for each.
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8. Mediating Variables
Variable Operational Applied by
Definition H. Stern
A result of consumers’ •Family owned and operated
Brand knowledge about the brand. •Good Customer Service
•Distinct
Knowledge The key to creating brand
equity.
•Custom Made to Order
The perception of a brand in • Gain Social Approval
Brand Image the minds of persons. The •Unique
brand image is a mirror •Rare pieces
reflection (though perhaps
inaccurate) of the brand
personality or product being.
It is what people believe
about a brand-their thoughts,
feelings, expectations.
8

9. Mediating Variables
Variable Operational Applied by
Definition H. Stern
consumer knowing of a Brand recognition Consumers’
Brand brand's existence; at ability to e able to recognize the
brand as one to which they have
Awareness aggregate (brand) level it
refers to the proportion of
already been exposed to
Brand recall.
consumers who know of the Consumers’ ability to retrieve
brand. two components of the brand from memory when
brand awareness is brand given the product category ,the
recognition and brand recall. needs fulfilled by the category,
or a purchase or usage situation
as a cue.
Describes how well the •Product reliability
Brand product or service meets •Efficiency
customers’ more functional •Durability
Performance needs.
•Highest Quality
The degree of a customer Customers willingness to invest
Customer staying with a specific time, energy, money or other
resources in the brand
Loyalty vendor or brand.
Repeat Purchases
9

10. Dependent Variables
Variable Operational Applied by
Definition H. Stern
marketing effects or outcomes Market Share
Brand Equity that accrue to a product with its
brand name compared with
those that would accrue if the
same product did not have the
brand name
The differential effect that
Customer brand knowledge has on
consumer response to the
Based Brand marketing of that brand
Equity
business buzz term, which Stock Price
Shareholder implies that the ultimate Price/Earnings Multiple
measure of a company's Market Capitalization
Value success is to enrich
shareholders.
10

11. Position and Values
Includes:
• Market Segmentation
• Market Targeting
• Differentiation
• Positioning

12. Position and Values
• Market Segmentation
Divides the market into distinct groups of homogeneous
consumers who have similar needs and consumer
behavior, and who thus require similar marketing mixes
According to Claritas PRIZM NE, H. Stern applies to
the Segments of Urban Uptown, the Elite Suburbs to
some extent, the Landed Gentry Segment groups.
these represent the Upper and Higher Middle classes.

13. Position and Values
Differentiation
The degree to which our corporate brand is seen as different
from others.
Points of Parity Points of Difference
 High Quality  Handpicked Gems
 Hand Crafted  Overall Buying Experience
 Top Gems and Metals  Innovative Design
 Popular Design  Nature Oriented
 Stern Star Collection
 Noble Gold

14. Position and Values
•Market Targeting
The specific part of the population to whom a product offering is aimed and
all marketing communication is tailored.
Concentrated Marketing - H. Stern has diversified their target
market opening the spa and restaurant. This add business (and leisure)
lunch diners to their repertoire of already affluent
shoppers. These people demand quality and service. By limiting
the hours of the restaurant, H. Stern ensures that Eca is a destination
experience, and not just chosen out of pure convenience. These
market segments frequently overlap.

15. Position and Values
• Positioning
The act of designing the company‟s offer and image so that it
occupies a distinct and valued place in the target customer’s
minds.
When customers think “H. Stern” they
think quality and opulence. Furthermore,
words such as “shiny,” “bold,” and
“unique” may bring H. Stern to mind.

16. Branding Strategy
Marketing Brand Secondary
Programs Elements Association
Brand Awareness Brand Image
Relationships:
What about You and Me?
Resonance
Response:
Judgments Feelings
What about You?
Meaning:
Performance Imagery
What are You?
Salience Identity:
Who are You?
Market Share

17. Branding Strategy
Branding Strategy has three components:
• Development of Marketing Programs which consist
of Product, Price, Distribution Channels and
Communication
• Carefully chosen Brand Elements
• Secondary Associations made in relation to the brand.

18. Developing Marketing Programs
Price
Communications Marketing Product
(Promotion)
Program
Distribution
Channels
(Place)

19. Developing Marketing Programs
Product Strategy
Discusses how value and quality perceptions are formed by
consumers and includes both tangible and intangible benefits.
• Functional benefits – H. Stern creates high value, high
quality jewelry from the finest locally mined gems.
• Process benefits – H. Stern has 160 stores in 12
countries and has infiltrated most luxury hotels.
Furthermore, H. Stern jewelry is available in high end
department stores and online.
• Relationship benefits - H. Stern is an easy company to
love, an inspiring rags to riches story. The dedication
and enthusiasm of it‟s employees is inclusive and makes
the consumer want to be part of the circle.
Henceforth, people want the company to succeed.
Also, the spa and Eça emotionally draw people into the
entire experience.

20. Developing Marketing Programs
Pricing Strategy
Dictates how consumers categorize the price of the brand and
how firm or flexible the price is. Price can lead to consumer
associations of perceived value and price categories.
H. Stern is a high end luxury good. It‟s prices
potentially can go into the millions of dollars
making it only accessible to the wealthiest
consumers. This knowledge adds to H. Stern‟s
Customer Based Brand Equity by offering it‟s
lucky ladies a feeling of high status and social
approval.

21. Developing Marketing Programs
Channel Strategy
The manner by which a product is sold or
distributed, includes intermediaries on all levels
of the chain.
Concentrated in high-end department stores,
luxury hotels, company owned flagship stores
and the Tel Aviv airport.
These stores employ top notch experienced
salespeople which enhances H. Stern‟s
customers‟ buying experience.

22. Developing Marketing Programs
Communication Strategy
Marketing communication is the process of informing, reminding, and
persuading the consumers about a particular product or service.
(bnet.com)
• Advertising
• Celebrity Endorsers – H. Stern regularly offers their
jewels to celebrities to wear to the Oscars, Grammy‟s
and such. This gives them free advertising as every
fashion magazine in the world covers what each starlet
wore on the red carpet.
• Marketing Programs
• Word of Mouth
• H. Stern magazine – This allows H. Stern to directly
control what the consumer reads and learns about their
company.

23. Branding Strategy
Marketing Brand Secondary
Programs Elements Association
Brand Awareness Brand Image
Relationships:
What about You and Me?
Resonance
Response:
Judgments Feelings
What about You?
Meaning:
Performance Imagery
What are You?
Salience Identity:
Who are You?
Market Share

24. Choosing Brand Elements
• Brand Identity
The contribution of all brand elements to brand awareness and
image
• Name
• Logos
• Packaging

25. Choosing Brand Elements
• Names
Companies named after their founders often
provoke a feeling of intimacy. The name H.
Stern represents dedication, commitment to
quality and vision.

26. Choosing Brand Elements
• Logos
The H. Stern logo has evolved over the years. The
new logo, adopted in 2001 adds a new
modernity to the company. Roberto Stern says
“It‟s classic, but with a very sensual, assertive „S‟
that will be modern, even fifty years from now.”

27. Choosing Brand Elements
•Packaging
H. Stern‟s main packaging is in their display. H. Stern takes
great care to ensure that their stores mirror their jewelry in design and
opulence. Furthermore, The H. Stern museum and gem tour allows
potential customers to become part of the process, forming an
emotional bond with the company which should lead to greater customer
Loyalty.

28. Leveraging Secondary Associations
• Celebrity Endorsers
A celebrity endorsement is great
publicity for any firm but H.
Stern manages to get it‟s
jewels on some of the
world‟s leading ladies year
after year. This exposes
them to an entirely different
market (think upper middle
class housewives and affluent
teenagers) that may not have
had exposure to the brand
before.

29. Branding Strategy
Marketing Brand Secondary
Programs Elements Association
Brand Awareness Brand Image
Relationships:
What about You and Me?
Resonance
Response:
Judgments Feelings
What about You?
Meaning:
Performance Imagery
What are You?
Salience Identity:
Who are You?
Market Share

30. Brand Awareness
• Brand Awareness is the strength of the brand node or
trace in memory, the consumer‟s ability to identify the
brand under different conditions.
H. Stern jewelry is becoming more recognizable in
the world. Their attention to detail and the finest
cuts and quality have them a favorite with gem
aficionados while their celebrity endorsers have
increased brand knowledge to the rest of the
world.

31. Brand Image
• Marketing programs that link strong, favorable, and
unique associations to the brand in memory create a
positive brand image. Consumers can form brand
associations through direct experience to information
from commercials or nonpartisan sources. The Brands
attempt to meet customers‟ psychological or social needs.

32. Branding Strategy
Marketing Brand Secondary
Programs Elements Association
Brand Awareness Brand Image
Relationships:
What about You and Me?
Resonance
Response:
Judgments Feelings
What about You?
Meaning:
Performance Imagery
What are You?
Salience Identity:
Who are You?
Market Share

33. What about the
Customer &
H.Stern?
( Brand Resonance)
What about the H.Stern What about the H.Stern
Customer? Customer?
(Consumer Judgments) (Consumer Feelings)
What is H.Stern
What is H.Stern about? about?
(Brand Imagery) (Brand Performance)
Who is H.Stern?
(Brand Salience)

34. Brand Building Blocks Definition H. Stern
Salience Salience refers to the recall and recognition of The name H. Stern is known throughout the
a brand as well as a consumers consideration world for it’s quality and innovative design.
of the product
Performance Performance addresses primary H. Stern jewelry is reliable and of the highest
characteristics of a product as well as aspects quality jewels and craftsmanship. It inventive
such as reliability, durability, style, design and without being trendy.
price
Imagery Imagery concerns a brand’s personality, H. Stern is seen as a progressive company
usage, and history as well as the market’s loved by the very wealthy and celebrities. It is
perceptions of it. family owned and operated and built from the
ground up.
Judgment Judgment addresses a brand’s quality, H. Stern is supreme quality and cutting edge.
credibility, superiority and relevance. It is unique, modern and exclusive.
Feelings Feelings refers to how a brand makes a H. Stern jewelry gives customers a feeling of
consumer feel. self-respect and social approval. When
bought for yourself, it is self-rewarding.
Resonance Resonance concerns brand loyalty and H. Sterns uses it’s restaurant, home store and
attachment plus active participation in a spa to create an entire H. Stern community.
brand’s community. The inclusive environment creates customer
loyalty.

35. Who is H. Stern?
Salience • H. Stern is synonymous in South America and around the
world with high quality gems; and to a further extent, they
•Is the customer are known for being a company that has succeeded
through hard work, ingenuity, top quality and
aware of H. Stern? performance.
• Maintains awareness through its vertically integrated
marketing system.
– Hans Stern wanted to “make the country of Samba
and Soccer also known as the country of colored
gemstones.”
•Does the customer • The customer can recall H.Stern through its:
recall the H.Stern – Guided Tours that give step-by-step views of the
design process
Brand ? – Modernized Moniker that coveys the company‟s
ideals
• The brand is recognizable through the famous necks and
wrists whose H.Stern jewels are seen adorning.
– Partnerships with Respected Colleagues
•Does the customer – “Appear predominately in the world‟s most respected
recognize the fashion magazines.”
H.Stern Brand?

36. P
What is H. Stern about?
Performance H. Stern Brand Performance
•What makes a customer want • H. Stern jewelry is made of the finest quality gems by the
to purchase from H.Stern?
highest qualified designers and gemologists. It is
within the top four of international jewelers and hold‟s its
value well.
• “The Gemological Laboratory‟s standards are in
accordance with GIA.”
• Hans “Invested in quality, creating in 1949 an
International Warranty Certificate to attest to the value
of his jewels.”
Imagery H. Stern Brand Image
• H. Stern offers high-end luxury items promoted through
•What type of associations do celebrities and endorsers. It is often seen as modern and
customers form from wearing exotic.
H.Stern? • H. Stern realizes that women buy jewelry in order to
reward themselves or to gain social approval from their
peers. By making unique, rare pieces, a woman‟s ultimate
jewelry need is fulfilled: to have a piece that is entirely
their own
• “Buying a jewel becomes a treasured moment of
pleasure.”

37. What about the H. Stern customer?
Judgments H. Stern Brand Judgments
H. Stern Jewelry is thought of to be exclusive, unique
What are the and of progressive design; Family owned and
customers operated, H. Stern is seen as a company built on
personal opinions hard work and innovation
Seen as “daring and innovative, clean and
and evaluations of contemporary-attracts men and women of every
the H.Stern Brand? nationality and generation.”.
H. Stern Brand Feelings
Feelings H. Stern jewelry gives a feeling of achievement ,
How does the status and social approval. When a woman
buys it for her self, it is self rewarding and
H.Stern brand offers a feeling of accomplishment.
affect customer’s When purchasing a piece, the customer can feel
feelings about as though they are part of an elite society,
themselves and owning a piece that was created for them
their relationship alone.

38. What about the customer and H. Stern?
H. Stern Brand Resonance
Resonance • The company‟s spa, restaurant and home store
How well do create an entire H. Stern community.
H.Stern’s • This exclusivity leads to greater customer
customers feel a brand loyalty all around.
connection with • Every H.Stern employee strives to build
relationships with their customers, gaining
the brand?
customers-for-life.
• The customer is never pressured to
purchase in a given moment

39. Sources of Brand Equity
H. Stern creates Customer brand equity through the many H. Stern
product options, special services and personalized care.
• International Warranty Certificate – H. Stern offers a certificate in order to “attest
to the value of his jewels.” (H. Stern website)
• H. Stern Spa – H. Stern offers services in addition to their jewelry line that maintain
the goal of providing customers with a luxurious experience. The H. Stern website
sums it all up “To transform dreams into reality. This is H.Stern´s mission. And this
principle is not restricted to the creation of products of the brand, but it‟s also
extended to the services we aim to offer to our customers.” This conveys the kind of
added value that customers look for in a brand.
• Eça Restaurant - The Restaurant not only adds to the H. Stern jewelry buying
experience, but it gives the company access to an entirely different market; the
business world. H. Stern says that its restaurant is “transforming any business lunch
into a delightful pleasure time.”
• H. Stern Home – H. Stern Home rounds out the overall experience by bringing the
incomparable quality and pioneering design of H. Stern gems into the kitchen. Like
Tiffany &Co., a major competitor, H. Stern offers china settings, accessories and
lighting. If very pleased with the jewelry, a customer may be more inclined to buy their
furnishings at H. Stern, and vice versa.

40. Sources of Brand Equity
• H. Stern Magazine – The Magazine builds Customer Equity
in many ways and has many different benefits:
• Each magazine offers a behind-the-scenes view of the company
and fashion which draws the consumer into the story as though
they were somehow part of the business.
• The magazines feature celebrities who have been wearing their
jewelry, creating a desire for those influenced by celebrity culture to
buy H. Stern‟s jewelry as well. This could make the socially
conscience consumer feel that “if it is good enough for
Angelina, it‟s good enough for me.”
• Each magazine showcases the H. Stern collection, thereby
exposing its wares to a larger geographical market.

41. Fim!

42. References
• Philip Kotler, Principles of Marketing, 12 th
edition, Prentice Hall, 2007.
• http://Bnet.com
• http://www.claritas.com/claritas/Default.jsp?c
i=3&si=4&pn=prizmne_segments
• Keller, Kevin. Strategic Brand Management, 3rd
edition. Prentice-Hall, 2008.
• H. Stern website: http://hstern.net
• http://www.thetimes100.co.uk/case-study--
the-use-marketing-mix-product-launch--87-303-
1.php