Chapter 1 from Strategic Brand Management 3rd Edition from Kevin Keller

1. Strategic Brand
Management

2. Adriana Lima – Brazilian Model

3. .
• A brand is a “name, term, sign, symbol, or design, or a
combination of them, intended to identify the goods and
services of one seller or group of sellers and to differentiate
them from those of competition.”
• Branding has been around for centuries as a mean to
distinguish the goods of one producer from another
• The word BRAND is derived from the Old Norse word
brandr, which means “To Burn”
• The simplest definition is , branding is all about naming a
commodity
• These different components of a brand that identify and differentiate it are brand elements.

4. .
In the beginning of mankind
 Products were pretty much the same
 Trade kept in family
 Choice was easy

5. .

6. .
Brands are much more than logos

7. . Create in the mind of the prospect the
PERCEPTION
that there’s no other product or service
quite like this Branded One!

8.  Abundance of choices
 Being distinctive is the way potential users
will decide whom to do business with

9. When We build a brand
We Create a better perception in
the mind.

10. • Not in the mind of the Company
• Not in the mind of the CEO
 But in the mind of the
Customers!

11. . Just a logo/catchy slogan
 A little Advertising
 Having attractive stationery or letterhead

12. 12
Harley Davidson American by Birth. Rebel by Choice
Porsche There is no substitute.
Aston Martin Power, beauty and soul.
Walmart Save Money. Live Better.
Reebok I am what I am.
Calvin Klein Between love and madness lies obsession
Tag Heuer Success. It’s a mind game
Levis Quality never goes out of style
3M Innovation
Sony Make Believe
Energizer Keeps going and going and going
PlayStation Live in your World. Play in ours.
Nikon At the Heart of the Image
Kodak Share moments. Share Life
Olympus Your Vision. Our Future
Hallmark When you care enough to send the very best.
McDonalds I’m Loving it
KFC Finger Lickin’ good
Burger King Have it your way
M&Ms Melts in your mouth, not in your hands.
Nokia Connecting People
Coca Cola Open Happiness
Nike Just do it

13.  People overwhelmed by available
choices
 Human attention is a major business
currency
 Interest in, and loyalty to, brands
that
 don’t “touch them” fall off the
choice chart.

14. .
.
• A product is anything we can offer to
a market for attention, acquisition,
use, or consumption that might satisfy
a need or want.
• A product may be a physical good, a
service, a retail outlet, a person, an
organization, a place, or even an
idea.

15. A brand is therefore more than a
product, as it can have dimensions that
differentiate it in some way from other
products designed to satisfy the same
need.
Some brands create competitive
advantages with product performance;
other brands create competitive
advantages through non-product-
related means.

16. Brand versus Product
5 Levels of a Product

17. 17AOT- www.tharakadias.com

18.  Product form
 Features
 Customization
 Performance
 Conformance
 Durability
 Reliability
 Repairability
 Style
AOT- www.tharakadias.com

19.  Ordering ease
 Delivery
 Installation
 Customer training
 Customer consulting
 Maintenance and
repair
 Returns
AOT- www.tharakadias.com

20. 20AOT- www.tharakadias.com

21. 21AOT- www.tharakadias.com

22. 22AOT- www.tharakadias.com

23. Consumer
 Identification of source of product
 Assignment of responsibility to product maker
 Risk reducer
 Search cost reducer
 Promise, bond or pact with maker of product
 Symbolic device
 Signal of quality
23

24. 1. Performance risk
2. Functional risk
3. Physical risk
4. Financial risk
5. Social risk
6. Psychological risk
7. Time risk
24AOT- www.tharakadias.com

25. Manufacturer
 Means of identification to simplify handling or tracing
 Means of legally protecting unique features
 signal of quality level to satisfied customers
 Means of endowing products with unique association
 Source of competitive advantage
 Source of financial returns
25AOT- www.tharakadias.com

26. Physical goods
 Pharmaceuticals
 FMCG
 Industrial
 All B2B products
 High tech products
Services
 Airlines- British Airways
 Hotels – Hilton
 Banking – HSBC
 Hospitals – South City
 And many more
26AOT- www.tharakadias.com

27. 27
Retailers and Distributors
 Agha’s, Farid’s, Paradise, Naheed
Online products and services
 Homeshopping.pk, daraz.com.pk
People and Organization
 Shan, Zubaida Apa
Sports, Arts and entertainment
 Cricket, foot ball, Movies and Dramas
Geographic locations
 Gilgit, Swat
Ideas and causes – Aids ribbons
AOT- www.tharakadias.com

28.  Savvy customers
 More complex brand families and portfolios
 Maturing markets
 More sophisticated and increasing competition
 Difficult in differentiating
 Decreasing brand loyalty in many categories
 Growth of private labels
 Increasing trade power
 Fragmenting media coverage
 Eroding traditional media effectiveness
 Emerging new communication options
 Increasing promotional expenditure
 Decreasing advertising expenditures
 Increasing cost of product introduction and support
 Short term performance orientation
 Increasing job turnover
28AOT- www.tharakadias.com

29.  Cost
 Clutter
 Fragmentation
 Technology
29AOT- www.tharakadias.com

30.  One of the important in the branding environment is
the proliferation of new brands and products
 One of the main reason is the line extensions
 There for brand name may now be indentified with a
number of different products with varying degree of
similarity
 E.g.: Coke, Nivea, Pantene, Lux,, etc.
30AOT- www.tharakadias.com

31. 31AOT- www.tharakadias.com

32.  Identifying and establishing brand positioning
 Planning and implementing brand marketing program
 Measuring and interpreting brand performance
 Growing and sustaining brand equity
32AOT- www.tharakadias.com

33.  Mental maps – this is a visual depiction of the different types of associations
linked to the brand in the mind of consumer(Land Rover)
 Core brand association – these are that subset of associations(attributes and
benefits) that best characterize a brand (Toyota)
 Brand mantra- this is know as brand essence or core brand promise (we deliver
anything- DHL)
 Competitive frame of difference- how u crate the brand value and brand
positioning differently to the competition (HSBC)
 Points of parity and points of difference – creating brand superiority in mind of
consumers of advantages or point of difference a brand offers, while at
alleviating concerns about and possible disadvantages of using competitor
products ( Pharmaceuticals)
33AOT- www.tharakadias.com

34.  Mixing and matching branding elements- brand logos, , brand names,
symbols, characters, packaging and slogans. Use these elements to
create a strong brand relationship
 Integrating brand marketing activities – Personalize marketing, one to
one marketing , permission marketing
 Leveraging secondary association – the brand may themselves be linked
to certain source of factors, such as the company, countries or other
region, or channel of distributors of distribution channel which will be
associate and identify through that channel.
34AOT- www.tharakadias.com

35.  Brand value chain- is a mean to trace the value creation process for
brands.
 Brand audit – it’s a comprehensive examination of its source of equity
 Brand equity management system – is a set of research procedures
designed to provide timely, accurate and actionable information which
needs to take the best tactical decisions in short term and long term
 Brand tracking – involving the above system is called brand tracking
35

36.  Brand product matrix – is a graphical representation of all the brands and
products sold by the firm
 Brand hierarchy – displays the number and nature of common and
distinctive brand components across the firms products. By capturing the
potential branding relationships among the different products sold by the
firm.
 The brand portfolio – is the set of all brands and brand lines that a
particular firm offers for sale to buyers in particular category.
36AOT- www.tharakadias.com

37. .

38. .
Mental maps
Competitive frame of reference
Points-of-parity and points-of-difference
Core brand values
Brand mantra
Mixing and matching of brand elements
Integrating brand marketing activities
Leveraging of secondary associations
Brand Value Chain
Brand audits
Brand tracking
Brand equity management system
Brand-product matrix
Brand portfolios and hierarchies
Brand expansion strategies
Brand reinforcement and revitalization
KEY CONCEPTSSTEPS
Grow and Sustain
Brand Equity
Identify and Establish
Brand Positioning and Values
Plan and Implement
Brand Marketing Programs
Measure and Interpret
Brand Performance