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JDR
Daniel Rembeth – July 23rd 2008
Session IV-
Strategic Brand Management: Managing
Brands Over Time/Life Cycle
y
JDR
Daniel Rembeth – July 23rd 2008
Launch – New/Extension
Initial Uptake
Penetration/Growth
Plateauing – “Rule of three”
D li
Decline
Rejuvenation
Demise
JDR
Daniel Rembeth – July 23rd 2008
Deep understanding
D d di off the
h segment
Sources of Value
Competitive Landscape
Customers – up close and personal
Understanding
U de s a d g the e reason
easo - sstrategy
a egy for
o Launch
au c
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
Market Diversification
Development Strategy
New
Markets
Strategy
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
Parent
Segments
JDR
Daniel Rembeth – July 23rd 2008
Example:
Li
Line Extension:
E i Move
M into
i different
diff paints,
i media,
di
textures – same/similar POP
JDR
Daniel Rembeth – July 23rd 2008
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Daniel Rembeth – July 23rd 2008
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Daniel Rembeth – July 23rd 2008
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Daniel Rembeth – July 23rd 2008
Example :
Heritage:
g Chemistry/Science
y
JDR
Daniel Rembeth – July 23rd 2008
Extension Strategy
gy Steps:
p
4) Evaluate candidates
Compelling relevant
Conservative strong
5) Competitive Analysis
6) Launch
7) Evaluate
JDR
Daniel Rembeth – July 23rd 2008
Extension Checklist
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
Any
A action
ti that
th t a fi
firm takes
t k as partt off its
it marketing
k ti program h
has
the potential to change consumer knowledge about the brand
These
Th changes
h in consumer b brand
d kknowledge
l d ffrom current
marketing activity also will have an indirect effect on the success of
future marketing activities
JDR
Daniel Rembeth – July 23rd 2008
Consumer response to
current marketing activity
Consumer response to
future marketing activity
JDR
Daniel Rembeth – July 23rd 2008
Reinforcing
f Brands
JDR
Daniel Rembeth – July 23rd 2008
Decline or
Harvest
Rejuventation
Growth
Launch
Time
JDR
Daniel Rembeth – July 23rd 2008
What
Wh t products
d t does
d it represent?
t? Wh
Whatt b
benefits
fit does
d it supply?
l ?
What needs does it satisfy?
How
H d
does it make
k those
h products
d superior? Wh
What strong, ffavorable,
bl
and unique brand associations exist in the minds of consumers?
JDR
Daniel Rembeth – July 23rd 2008
Consistency
C i i nature
in
and amount of
Brand Awareness marketing support
What products does
the brand represent?
What benefits does it Innovation in product
supply? d
design, manufacturing
f
What needs does it and merchandising Continuity in brand
satisfy? meaning; changes in
marketing tactics
Brand
B d Reinforcement
R i f t
Strategies
Brand Image
How does the brand Protecting sources of
make products brand equity
superior? Relevance in user and
What strong, user imagery
favourable & unique
brand associations
exist in the customers’ Fortifying vs.
minds? leveraging brand
equity
JDR
Daniel Rembeth – July 23rd 2008
Reinforcing Brands
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Daniel Rembeth – July 23rd 2008
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Daniel Rembeth – July 23rd 2008
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Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
E.g.: Shell
Late 1970s
Extremely positive image with consumers
Early 1980s
Loss of unique position in the eyes of the consumers
Caused by drop in ad and marketing support
E.g.: Marlboro
Positioning
P i i i with
i h use off Cowboy
C b being
b i used
d consistently
i l since
i
the 1950s
Other example:
p Kaki Tiga,
g Dua Kelinci
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
Brand Awareness
What products does the brand represent?
What benefits does it ssupply?
ppl ?
What needs does it satisfy?
Brand Image
How does the brand make products superior?
What strong,
strong favourable & unique brand associations
exist in the customers’ minds?
JDR
Daniel Rembeth – July 23rd 2008
“I’d like it if my boss were to see me on the street carrying a copy of The Economist.”
“Those frightening people who seem to know more than me about any subject
probably
b bl read d it.””
Insight:
Being seen as “an Economist reader” may be more valuable to the target than actually
reading it.
JDR
Daniel Rembeth – July 23rd 2008
Reinforcing Brands
Brands- Protecting So
Sources
rces of BE
Although brands should always look for powerful new sources for
q y
brand equity
Those sources of brand equity that already exist should be
preserved and defended
E.g.: P&G’s - Cascade automatic dishwashing detergent
Change off formula
Ch f l to reduce
d costs
Drop in product effectiveness
“Sunlight fights spots better than cascade” – Levers ad
P&G revert to old formula
Legally gets lever’s ad pulled back
E.g.: Cadbury’s worms issue
Factory view in ads
Purity
P it seall packaging
k i
E.g.: Indofood and Ajinomoto ‘issues’
E.g.: KATOM Kacang Garuda vs Dua Kelici
E.g.:
E g : Extra Joss vx Enerjos
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
Fine-Tuning
Fine Tuning Marketing Supporting Marketing
Program
Product-Related Associations
Non-product-Related Associations
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Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
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Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
experiential
i i l
Lego Accessories Furniture
Aveda Aromatherapy Make-up
JDR
Daniel Rembeth – July 23rd 2008
Revitalizing Brands
JDR
Daniel Rembeth – July 23rd 2008
Decline/Harvest
Rejuventation
Growth
Launch Time
Increase frequency of
consumption (how Identify new and
often) different ways to
Refresh the sources of use the brand
brand equity
q y
Brand Revitalisation
Strategies
Create new sources of Retain vulnerable
brand equity customers
Bolster fading
associations Recapture lost
customers
Revitalizing Brands
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
Id
Identifying
if i new or additional
ddi i l usage opportunities;
ii
sometimes completely different ways
Communicate appropriateness of more frequent use in current situations
Reminders to use
JDR
Daniel Rembeth – July 23rd 2008
Finding
Fi di new uses forf the
th brand
b d withith TOM awareness – Bayer
B A
Aspirin
ii
Reminding consumers to replace products with short lifespan - Oral-B
Providing innovative package design – Coca Cola
Increasing usage – Pepsodent
d sikat
k gigi 2
2x sehari,
h A
Aqua 8 gelasl
sehari
Increasing the level or quantity of consumption
Increasing the frequency of consumption
Identifying new or additional usage opportunities – Lifebuoy, Sosro
Communicate appropriateness of more frequent use in current situations
Reminders to use
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
Go “back
back to basics
basics” and tap into existing sources of brand
equity (e.g., Harley-Davidson – macho motorcycle, Finna – seafood
based)
product
d strategy
pricing strategy
channel strategy
communication strategy
JDR
Daniel Rembeth – July 23rd 2008
Improving-Revitalizing Brands
R
Rediscovering
di i and d mobilizing
bili i the
h brands
b d “Roots”:
“R ”
Established footprint elements
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
Customer – Based
B d Equity
Brand E it
Management over Life
Decline/Harvest
Rejuventation
Growth
Launch
Time
Comeback Stories
JDR
Daniel Rembeth – July 23rd 2008
Acquire
A i new customers
t - VW ((up market),
k ) BMW (down
(d
market)
New
N di
distribution
ib i outlets
l - Metro Dept. Store (internet
sales), adidas (life style store)
JDR
Daniel Rembeth – July 23rd 2008
JDR
Daniel Rembeth – July 23rd 2008
Reasons why
JDR
Daniel Rembeth – July 23rd 2008
Strategy
Swiftness
S if – SQ,
SQ Indofood,
I d f d Lippo
Li Bank
B k rush
h
Pre-empt – Sampoerna egg campaign
Good governance – Riau Pulp, Standard Chartered
Corporate Responsibilities
bl – Astra,
A Danamon, Unilever
l
JDR
Daniel Rembeth – July 23rd 2008
Managing
Managing - Maintaining Equity at Disney
How can Disney maintain brand equity for the film Bambi over the
years?
How does Disney expand brand equity through film -movies and
tv program-
program productions?
Are there any sub-brands that Disney should consider retiring?
JDR
Daniel Rembeth – July 23rd 2008
Managing
Managing - Maintaining Equity at Disney
Creation of franchise
JDR
Daniel Rembeth – July 23rd 2008
Universitas
U i it Indonesia
I d i
HOW?
IIt’s
’ your home
h workk to analyze
l and
d present it
next week….
JDR
Daniel Rembeth – July 23rd 2008
JDR