BRANDING AS A MARKETING STRATEGY A Perspective for A Common Platform

Proposed by

Rahim Jabbar
Jakarta ,11th May 2005

Points of discussions (1)

Marketing as a Core Business Process
What Is Business? The Essence Of Transaction/Exchange Process The Essence Of Values Exchanged Three Kinds Of Business In Commercial Organization Basic Strategic Marketing Questions For The Business Marketing: From Commodity to Brand General Stages of Segmentation, Targeting & Positioning Stage-gate Product Development Process Critical Success Factors for Marketing Marketing as a social and cultural engineering process

Main Points of the Marketing Concept Basic Concepts of the Brand

Fundamentals of Brand Components of A Brand Product/Service as the Basis Name as the Identifier and Relater Packaging as the Presenter Message and Communication as the Purveyor

Points of discussions (2)

The Process of Brand Development
From Customer Values to Brand Concept Brand Concept and Brand Architecture

The Positioning for A Brand

The Concept of Positioning Factors to be Considered Positioning, Brand Development and Target Segment Questions to Develop Message Contents and Advertising

Managing the Brand

Brand Management Reaching the End-Customers Communications and Advertising Brand Communications: Hard and Soft -Sell Objectives of Advertising, Promotion and Merchandising Components of A Winning Offer Operational Aspects of Brand Equity.
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Points of discussions (3)

The Paths Towards Developing A Global Brand
The Paths: Elegant Concept and Excellent Execution Pre-requisites to Develop a Global Brand Requirements to Nurture and Maintain a Global Brand The Targets for a Global Brands:

The five segments of the global consumers The 11 segments of transnational consumers The Social and Economic Classes of the Global Consumers

Learning from the Leaders : 100 Global Most Valuable Brands Global Brand Necessitates a World-Class Organization

The Concepts of Strategy

A Definition of Strategy The Dimensions of Strategy Practical Applications of Strategy Strategy: Creating the Future Today Practical Strategic Questions Strategic Management Process Strategic Decision Making Process Focal Points of Different Views of Strategy Managing Key Strategic Issues to Develop a Winning Strategy
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MARKETING AS A CORE ELEMENT OF BUSINESS ACTIVITY

WHAT IS BUSINESS ?

RETURN On INVESTMENT

The Owners of Capital/ Resources

The Business Processes

INVEST

The Transaction/ Exchanges

The Firms

INPUTS

THROUGHPUTS

OUTPUTS

TARGET MARKET

THE RETURNS

Copyright Rahim Jabbar /2002

What is the ESSENCE/NATURE of TRANSACTION PROCESS?

PRODUCT /

SERVIC E

THAT PROVIDES

VALUES

TO THE

CONSUMERS/ CUSTOMERS

SATISFACTION

TRANSACTION
THE FIRM THE

OFFER

THE

MONEY

THE EXCHANGE PROCESS

INCOME/ EARNING

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Copyright Rahim Jabbar/1999

THE ESSENCE OF VALUES THAT ARE DERIVED FROM CONSUMPTION

GOODS

VALUES : SPECIAL MEANINGS ATTACHED TO SPECIFIC CONSUMPTION OCCASIONS/ EVENTS

SERVICE S

IDEAS

THE OFFE R

EVENT S

USED
ENTITIES DISPOSED GOALS
ACHIEVED

C O N S U M E R

VALUES

WANTS

SATISFIED

VALUES

NEEDS

FULFILLED

THE ENVIRONMENT

Three Kinds of Business in Commercial Organization

Battle for SCOPE: Service-oriented, consumer-comesfirst mentality SPEED is the Key: The Battle for Talent, Employee centered, coddling the creative stars

THE COMMERCIAL ENTERPRISE

ORGANIZATION

Battle for SCALE: High fixed cost, Cost focused,

Source : Adapted from John Hagel III and Marc Singer, Unbundling the Organization< (2001)

Basic Strategic Marketing Questions for the Business

1. Where are we now?

P.E.S.T.

Company

Consumer/ Customers

Competitor s
3. Why are we where we are now? S.W.O.T

2. What separates the winners from the losers? Critical Success Factors

4. What do we want to be ? Where do we want to go ?

Vision Mission
Relevant segmentation variables

5. How can we go there ? Is there any other alternatives ?How many alternatives do we have ? Development of strategic options

Segmentation S.T.P. Targeting Positioning

Potentiality

Commodity or Brand?

Competitiveness

Portfolio Strategy

6. Which way is the best ? Evaluation of strategic options

Development 6.How do we implement the selected strategy ? Mixing and matching the Marketing Mix Elements 7.How do we ensure our reaching the selected destination ? Control of implementation Creation

Activation

Brand Health

Market Share

Profitability

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Copyright Rahim Jabbar/2002

General Stages of Segmentation, Targeting, Positioning

1. How is our current situation? Current Position Capabilitie s 2. What is (are) our objective(s)? Marketing Vision/Mission 3. What is the level of variability of our target markets ? Can we group them into a number of segments? High variability ->segments Low variability -> segmentation not needed Constraint s

STOP

4. How many segments are there? How is the profile of each one ?

Identify segment variables

Segment the markets 5. What specific segment (s) do we want to target? Why ?

Profile each major Segment

Potentiality

Attractiveness

Target selection

6. What positions ara available for each target segment? (Gap analysis)

Map the market & identify the positions of current offers 7.How do we fill the selected position ?

Identify alternative developable positions Clear

Create & develop alternative positioning concepts

Select the most appropriate concepts

Correc t Competitive

8.How do we make it known to the target ?

Copyright Rahim Jabbar/2002

Create & develop brand & its communication

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MARKETING:
STAGE-GATE PRODUCT DEVELOPMENT PHASES

Initial Screen

Second Screen

Decision on Business Case

Post Development Review

PreCommercialization and Business Analysis

Post Implementation Review

IDEAS

Gate 1

Stage 1

Gate 2

Stage 2

Gate 3

Stage 3

Gate 4

Stage 4

Gate 5

Stage 5

P.I.R.

Ideation

Preliminary Investigation

Detailed Investigation (Build Business Case)

Development

Testing and Validation

Full Production and Market Launch

Source: Adapted from Brauns Mission Statement as quoted by Bruce & Jevnaker, Management of Design Alliances, Sustaining Competitive Advantage, Wiley, 1998 . (The two statements within brackets are the writers addition)

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MARKETING AS SOCIO-CULTURAL ENGINEERING PROCESS : A view from the hinterland

The BRAND

Individual specificity A particular Socio-cultural millieu The universal human nature

Individual specificity

Being ENGINEERED

To consume certain PRODUCT and to choose a specific BRAND

Transformed into

A particular Socio-cultural millieu The universal human nature

Human beings

CONSUMERS

Rahim Jabbar/1999

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MAIN POINTS OF THE MARKETING CONCEPTS

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MAIN POINTS OF THE MARKETING CONCEPTS (1)

1. Marketing is a major element of the core business processes of creating value added through inducing and stimulating transactions/exchanges 2. Business transaction can only be realized through offering product/service (=the offer) as a means of exchanging values between the consumers/customers/clients and the firms/companies. 3. Consumers/customers/clients will consider any offer (be it product or service) as bringing values to them if the offer help them achieve their goals , satisfy their wants and fulfill their needs

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MAIN POINTS OF THE MARKETING CONCEPTS (2)

4. Values, therefore can be seen as special meanings attached to a particular consumption occasion (of using or consuming a product or the event of receiving a particular service. (pragmatic/utilitarian use of the word value) 5. At this point, marketers have two options: go with the product as a commodity wrap the values offered by the product through branding 6. Branding is a strategic option for marketing a product. Branding is a means of wrapping the values surrounding the product.

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MAIN POINTS OF THE MARKETING CONCEPTS (3)

7. The task of marketing function is to find and create consumers/ customers/clients by transforming individual persons or groups of people from being lay people in the streets into obtaining some added values at consuming the offers/using the product or becoming recipients of the services.

8. After this transformation, the task is to manage the relationship (Customer/Consumer Relationship Management).
9. Managerially, the marketing process consists of development, creation, and activation of the marketing mix for the offer (product or service) destined for a specific target in mind.

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MAIN POINTS OF THE MARKETING CONCEPTS (4)

10. These days rarely do we find single product for single market (a single product-market category). The overwhelming majority of categories comprise of multi-products targeted at a variety of different groups of consumers/customers /clients. ( Each group is conveniently called a segment of the market).
11. Due to the above reasons, the development of any offer (be it product or service) should go through the process of S.T.P. (Segmentation, Targeting and Positioning)

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MAIN POINTS OF THE MARKETING CONCEPTS (5)

12. Segmentation is the way you partition the market based on certain approach. Segmenting the market would facilitate in choosing the specific part of the market you want to target.
13. Targeting is the process matching your product/offer to specific part of the market. 14. Positioning is the way you differentiate your product/offer from same product category targeted to the same segment.

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BASIC CONCEPTS OF THE BRAND

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FUNDAMENTALS OF BRAND

OBJECT

NAME

MEANINGS & ASSOCIATIONS

VALUE - ADDED GENERATED BY BRAND Badge of Origin Promise of Performance The value of re - assurance Replicability TRANSFORMATION EXPERIENCE Subject experience of using a brand : promotive/de-motive effects of brand on physical product characteristics

Authenticity

Inner Directed

Sources : Excerpted from various sources and business experiences

Differentiation/ Brand Personality A relevant emotional metaphor linked with social dimensions

Outer Directed

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THE BRANDS :
COMPONENTS OF A BRAND
Should be matching

THE IDENTIFIER/ RELATOR Brand Name/ Logo

THE PRESENTER The Packaging

THE BASIS The Product/ Service THE PURVEYOR The Message/ Communication/ Advert. THE PROXY OF VALUE The Price

Should be matching to each other Copyright Rahim Jabbar/1999

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THE BRANDS: PRODUCT/SERVICE AS THE BASIS

HABITS AND USAGE DATA/INFO

Uses/ Usages

USERS

Benefits

Attributes

THE PRODUCT

VALUES
Choice Criteri a Overall Performance Measure

Dimensions of Product Performance Copyright Rahim Jabbar/1999

Specific Positives/ Negatives

Physical attributes

Process attributes

Effect attributes

23 Benefit attributes

Page 7

THE BRANDS : NAME AS THE IDENTIFIER AND RELATOR

The BRAND NAME

Sound/ rhyming

Associations

Meanings

Shape of Fonts

Symbols

Sociocultural context

A Impacting Affective & Cognitive aspects of human Commonality of association -> CORE C Impacting consumer perception

Copyright Rahim Jabbar/1999

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THE BRANDS : PACKAGING AS THE PRESENTER

The PACKAGING Materials

Attributes

Shape Associations Logo/ Icon

Colour

Symbols

Sociocultural context

Impacting Human Mood

Impacting consumer perceptio n

Impacting cognitive & affective aspects of human beings

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Copyright Rahim Jabbar/1999

THE BRANDS : MESSAGES, COMMUNICATION & ADVERTISING AS THE PURVEYOR

What to say and How to say it What ? (THE PROMISE) Creativity (Big Idea) To Whom? (THE TARGET)

How ? (The Way)

Why ? (THE SUPPORTING FACT

Communication Psychology (Symbology, tone, pitch,etc)

Consumer Psychology

SELECTED POSITIONING

COPY STRATEGY

ADVERTISING AND COMMUNICATION MATERIALS (AUDIO/ VISUALS)

Should be CORRECT

Should be CLEAR

Should be COMPETITIVE

Should be CREDIBLE

For the PRODUCT

For the MARKET

Should consider LONG-TERM HEALTH OF THE BRAND

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Copyright Rahim Jabbar/1999

THE PROCESS OF BRAND DEVELOPMENT

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FROM CUSTOMERS VALUES TO BRAND CONCEPT

PRODUCT
*)For organization (B-to-B) the group includes economic, technical and expertise benefits

Physical

SERVICES Sensorial (Visual/Tactile /Taste)

IDEAS

EVENT S ENTITIES

Process

Effects

A T T R I B U T E S

BENEFITS Social/Cultural* ) THAT BRING BENEFITS AND SATISFY WANTS, ETC.

GOALS
To be achieved

Psychological

NEEDS
To be fulfilled

CONSUMERS/ CUSTOMERS/ CLIENTS VALUES

Physiological / Biological

WANTS
To be satisfied

BENEFITS

BRAND

WRAPPE R

& CAR R IE R

OF

VALUES : SPECIAL MEANINGS ATTACHED TO SPECIFIC USAGE/CONSUMPTION OCCASIONS/EVENTS BY CONSUMERS/CUSTOMERS/ CLIENTS WHEN: Their goals are achieved Their needs are fulfilled Their wants are satisfied

COPYRIGHT Rahim Jabbar 2002

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FROM CUSTOMERS VALUES TO BRAND CONCEPT

*)For organization (B-to-B) the group includes economic, technical and expertise benefits

BRAND CONCEPT:

Developing a brand should start from core values that uniquely define the essence of your offer (product or service). The consumers/customers/clients (market segment) will happily buy and consume product or brand that is believed to help them achieve their goals, fulfill their needs and satisfy their wants. In other words, they will surely consider anything that brings values to them. (Beauty is in the eyes of the beholder). For example, people use furniture to give comfort and convenience to their life (i.e. not having to always stand neither sit nor lay their body on the floor). Furniture is the provider of values to the users, through giving the benefits of comfort (physiological need) and convenience (psychological needs). The maker arranges the properties of certain materials and design that give the attributes which deliver the required benefits. (KALAU DUDUK LUPA BERDIRI WHEN SITTING ON THIS, YOU WILL FORGET TO STAND UP) )
COPYRIGHT Rahim Jabbar 2002

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Brand Concept and Brand Anatomy

Exploring, describing, defining

PRODUCTS Specific Specific

VALUES
sought by the target market

In the forms of

GOALS/ NEEDS/ WANTS

Translated into

BENEFITS
required

Translated into

ATTRIBUTES
that bring BENEFITS

That support

PROPERTIES/ CHARACTERISTICS
that represent VALUES

SERVICES

To be achieved, realized, satisfied

IDEAS

EVENTS

BRAND CONCEPT Positioning Opportunities Ideas & Innovations

THE PROCESS OF SELECTING AN EFFECTIVE & POWERFUL BRAND

BRAND ANATOMY: A PARTICULAR ARRANGEMENT OF BRAND COMPONENTS TO PRODUCE A UNIQUE MIX OF VALUES

BRAND DEVELOPMENT PROCESS: If you have a product already, start with the core values that constitute the essence of your offer. Then match this with the consumer segment that seek those essential values. The segment is your target. If you do not have a product yet, find what core values are sought your target market. Then develop and create a product/brand that possess properties and characteristics that bring benefits of offering the values they look for. The brand concept is the statement of encapsulation of essential values that your product offer to the target. The brand concept should be able to fill in the best position in the mind of the target, in order to create a powerful brand. As such, you need to combine and arrange the brand components (product/service characteristics, name, packaging, core messages , and price) within a harmonious, balanced and coherent architecture).

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Brand Concept and Brand Anatomy

BRAND DEVELOPMENT PROCESS: If you have a product already, start with the core values that constitute the essence of your offer. Then match this with the consumer segment that seek those essential values. The segment is your target. If you do not have a product yet, find what core values are sought your target market. Then develop and create a product/brand that possess properties and characteristics that bring benefits of offering the values they look for. The brand concept is the statement of encapsulation of essential values that your product offer to the target. The brand concept should be able to fill in the best position in the mind of the target, in order to create a powerful brand. As such, you need to combine and arrange the brand components (product/service characteristics, name, packaging, core messages , and price) within a harmonious, balanced and coherent design).
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THE POSITIONING FOR A BRAND

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Positioning : The Concept

Positioning is what you do to the mind of the prospect. That is how you position your product/brand in the mind of the prospect. Therefore, to be effective, Positioning has to be done with the target (consumers/market) in mind The marketer should understand : What explains their behaviour (what motivates them; what benefits are sought. The degree to which his/her product/brand satisfy the targets needs (Brand Health Indicator/Brand Equity Monitor) The degree to which the competitors products/brands satisfy the targets needs (Customer Satisfaction Monitor, Competitive Brand Mapping, etc.) )
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Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)

Positioning : Factors to be Considered and Potential Sources

Positioning is to find a position of your offer ( in the mind of the prospect) that is THE BEST for it and THE MOST APPROPRIATE FOR THE TARGET MARKET Factors to be considered, therefore, should be : the product/service itself (What makes it so unique? What can make it distinctive ?). The followings can be explored : a. Technical innovation (GSM, G-4 ) b. Improved Performance (Corolla Altis) c. Perceived Superiority (Intel Computer Microchip) d. New benefits (Sony Walkman, G-3 Phone in Japan) the Company that makes it (What makes the Company so special?). Examples :Baygon --> Bayer guarantees Quality) Consumer Preference : Citibank, the House of Money. The Competitive Environment. The followings can be explored : a. Market segmentation (AMEX Card) b. Re-classifying competitors (BMW vs. Mercedes) c. Price/Value (Promag vs. Mylanta)
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Source: Adapted from Al Ries & Jack Trout, Positioning, the Battle for Your Mind (1989)

THE POSITIONING: POSITIONING, BRAND DEVELOPMENT AND TARGET SEGMENT

Page 5

Direct the development of the offer

THE IDENTIFIER/ RELATOR Brand Name/ Logo

THE PRESENTER The Packaging THE BASIS The Product/ Service Selected POSITION within TARGET SEGMENT THE PROXY OF VALUE The Price

THE SELECTED POSITIONING THE PURVEYOR The Message/ Communication/ Advert.

Correct for the product

Correct for the target segment

Copyright Rahim Jabbar/2002

BRAND CONCEPT
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Brand Positioning: Basic Questions to Develop the Message Content and Communication Strategy
1. Brand Vision 2. Brand Mission : What is the ultimate goal you have in mind for your brand. : What role will it play in the market? (How many roles are there? What are they ?) What role will it play in the Companys portfolio?. (How many roles are there? What are they ?) 3. Basic Positioning : How you want it to be seen comparatively among the offers claiming the same/similar benefits? (targeted to the same segment) Acid tests are : * Is it clear ? (unmistakable v.s. the others?) * Is it correct ? (for the brand ? for the market? for the target group?) * Is it competitive ? (better than the others ? able to challenge market leaders/major players in the category/segment/sub-segment ?) 4. Consumer end benefits: What will it do for me ? (functionally ? Emotionally ? Socially ? Etc.) 5. Reasons why : What make/will make the consumers believe that it will give the end benefits stated ? 6. Proofs : Why should your brand delivers its promise ? 7. Support benefits : What other benefits I get? (The consumer questions)
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MANAGING THE BRAND

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MANAGING THE BRAND

BRAND MANAGEMENT: Managing brand covers developing, rejuvenating, extending, marketing the brand (that includes distributing and advertising to the target market). The objective of brand management is to develop, create and strengthen equity of the brand. (Brand equity is the ability of a brand to gain market share, through first having a a reasonable share of heart and share of mind).

NAME/ LOGO The Identifier & Relator PRODUCT/ SERVICE The Basis/ Foundation CORE MESSAGES The Purveyor

PACKAGING

The Presenter

TARGET MARKET
PRICE Proxy of Value

Copyright: Rahim Jabbar, 2004

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MANAGING THE BRAND REACHING THE END-CUSTOMERS

MANUFACTURER/SUPPLIER

DIRECT

INDIRECT

DIRECT SALES

DIRECT MARKETING

SPECIALIZED RETAIL STORE

DISTRIBUTORS THE INTERNET WHOLESALER WHOLESALER

FACE-TO FACE

TELEMARKETING

WHOLLY OWNED

FRANCHISE

RETAILERS

RETAILERS

RETAILERS

END CUSTOMERS

Source: Capon & Gilbert : Marketing Management for the 21st Century

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MANAGING THE BRAND: COMMUNICATION & ADVERTISING

The Essence of Marketing Communication Process WHO SAYS WHAT IN WHAT CHANNEL TO WHOM WITH WHAT EFFECTS

PREFERENCE MARKETEERS THE OFFER ABOVE THE LINE BELOW THE LINE

THE TARGET

OTHERWISE

EXPOSES BRAND COMMUNICATION:

DISPLAY ADVERTISE

PROMOTE

Copyright Rahim Jabbar/1999

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MANAGING THE BRAND: BRAND COMMUNICATION

Soft-Sell vs Hard-Sell

* Hard-Sell : How does brand communication persuade people to buy ?

Messages

Transmission/ Transportation

Persuasion & play - back

Transformed Behaviour

Buying

* Soft-Sell : How does communication add values through symbols that carry specific meanings ?

Messages

Myths/ Rituals

Modified shared culture

Attitudinal change

Behavioural change

Buying

Symbols Meanings

Values

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MANAGING THE BRANDS:

The Objectives of Advertising, Promotion and Merchandising (APM)

1.To create awareness of the product/brand 2.To create desire for the product/brand (Stress customer benefits & their values) 3.To influence customer attitudes to the product (e.g.caring,etc) 4.To create brand loyalty 5.To persuade customers to buy

6.To persuade the customers to visit the outlets, compared to others

7.To remind customers to buy 8.To inform the market about the product/brand

9.To provide re-assurance about the product/brand

10.To be always ethical
Source: Adapted from Brauns Mission Statement as quoted by Bruce & Jevnaker, Management of Design Alliances, Sustaining Competitive Advantage, Wiley, 1998 . (The two statements within brackets are the writers addition)

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MANAGING THE BRAND: COMPONENTS OF A WINNING OFFER

Cultura l needs
Social needs COMMUN ICATION APPEAL
MEASURE OF DEGREE OF FIT BETWEEN CONSUMERS NEEDS AND THE OFFER

TARGET CONSUMERS
Psychological needs

Perceived PERFOR MANCE Product PERFORM -ANCE

Compet itive PREFE RENC E

Physiological needs

Actual PERFOR MANCE PRICE

Compet itive PRICE/ VALU E RATIO

Winning OFFER (BRAND/ PRODUCT)

LEVEL OF

DISTRIBUTION AVAILABILITY
PUS H

EXPOSURE
SHARE OF VOICE

AUDIB -ILITY SHARE OF VISUAL MATERIALS VISIBILIT Y

Compet itive PREV ALENCE

SHARE OF SHELF SPACE

Copyright Rahim Jabbar/1999

VISUAL/ AESTHETI C APPEAL

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(6%)

Advertising Quality
Qualitative research results Take out

MANAGING THE BRAND : Operational Aspects of Brand Equity

Advertising Effects
Brand trial & re-purchase Switching in and out

Advertising weight
Brand Support Expenditure Share of voices (Spend & TARPS)

(28%) (94%)

Consumer Pull
(95%)
Brand Image

(63%)

Perceived Quality
Actual Quality / CPT

Brand Performance Volume growth Share/share development Loyalty

Value Price
Price differentials

(72%) (5%)

Brand Equity

Spontaneous Awareness

(99%)

(100%)

Advertising Awareness Brand Awareness

Awareness Effects
(50%)

Targets: Marketing Consumer Profile Volume &Share Targets: Financials NTO and margins

Aided Awareness
(1%)
Source of Awareness

Numeric Distribution
Numeric Distribution By channel

(82%)

Operational Effects (Push)

(37%)

Distribution Effects

Weighted Distribution
(18%)
Sales per distribution points Source: A study on a fast moving consumer product market in Malaysia (1985-1995)

(50%)

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THE PATHS TOWARDS CREATING & DEVELOPING A GLOBAL BRAND

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THE PATHS TOWARDS CREATING A GLOBAL BRAND

FORWARD THINKING Ability to pre-select a category/segment that will most likely prove to be long lasting UNIVERSAL CORE SEEDS Posses universal core seeds that can develop into acceptability and appeal to transnational audience/consumers

Pre-requisites to develop a Global Brand

ELEGANT CONCEPTUAL FOUNDATIONS

LEADERSHIP SEEDS Posses the ability to lead the category/segment where the brand operates

CONTEMPORANEOUS RELEVANCE Posses the ability to remain relevant to target consumers through the properties that can be regularly reformed to become always contemporary.

Requirements to nurture and maintain a Global Brand

PROTECTABILITY Ability to legally protect the Trade Mark wherever it operates WORLD CLASS MARKETING COMPETENCE Posses the necessary and sufficient marketing competence to support effective and excellent marketing activities

EFFECTIVE EXCELLENT EXECUTIONS

SUFFICIENT AND EFFICIENT FINANCIAL MUSCLES Posses the necessary, sufficient and efficient financial muscles to be able support effective and excellent marketing activities that can reach above necessary threshold level.
STABILITY Ability to maintain the brand to remain stable throughout the peaks and troughs of market environment

Source : Analyzed by Rahim Jabbar from a series of articles on The Best 100 Global Brands, Business Weeks, July 2001, and August 5, 2002 .

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Pre-requisites to develop a Global Brand

The Company (its people) have gained a good understanding and working knowledge on transnational consumer culture. FORWARD THINKING Ability to pre-select a category/segment that will most likely prove to be long lasting The Company (its people) have gained a good understanding on the likely forces in the future that might shape the transnational consumer culture.

UNIVERSAL CORE SEEDS Posses universal core seeds that can develop into acceptability and appeal to transnational audience/consumers

Contains stretchable cultural values (parts of the cultural universals) that make it possess international potentiality and thus the ability to penetrate multinational markets . Contains the core values that can be maintained across cultural boundaries, whereas the surface structure of its communications can be easily localized, whilst maintaining its perception of universality and international-ness. Having a point-of-difference that creates a strong influence on consumers that is able to make it the brand of choice within the product category/segment where it operates Having a competitive quality of values offered to the target consumers/customers.

THE PREREQUSITES

LEADERSHIP SEEDS Posses the ability to lead the category/segment where the brand operates

Having a strong competitive advantagewith a flexible twist

CONTEMPORANEOUS RELEVANCE Posses the ability to remain relevant to target consumers through the properties that can be regularly reformed to become always contemporary.

Having the ability to create, develop and nurture line extensions product lines under the values of family umbrella

Source : Analyzed by Rahim Jabbar from a series of articles on The Best 100 Global Brands, Business Weeks, July 2001, and August 5, 2002 .

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Requirements to nurture and maintain a Global Brand

The Brand as a Trade Mark can be legally registered that will ensure the strength of Companys ownership of the Brand
PROTECTABILITY Ability to legally protect the Trade Mark wherever it operates The Trade Mark is own-able across national boundaries The Company has the legal capability to defend any disputes with regards to ownership of the Trade Mark The Companys marketing people have got the capability to conduct high quality marketing strategies and tactics WORLD CLASS MARKETING COMPETENCE Posses the necessary and sufficient marketing competence to support effective and excellent marketing activities The Companys marketing people have got unending sources of creativity to design and execute excellent, effective and efficient marketing activities The Companys marketing people have got the capability to conduct high quality distribution activities and trade marketing operations

THE REQUIREMENTS

SUFFICIENT AND EFFICIENT FINANCIAL MUSCLES Posses the necessary, sufficient and efficient financial muscles to be able support effective and excellent marketing activities that can reach above necessary threshold level.

The Company has got an excellent cash-flow plans that will ensure continuous flows of necessary funds to finance appropriate marketing and communication activities at optimum level to achieve share of prevalence above the required threshold.

STABILITY Ability to maintain the brand to remain stable throughout the peaks and troughs of market environment

Through its excellent marketing & communication activities, the Company has been able to develop, nurture and maintain the Brand(s) that have got the ability to command consistent and focused consumer/customer loyalty.

Source : Analyzed by Rahim Jabbar from a series of articles on The Best 100 Global Brands, Business Weeks, July 2001, and August 5, 2002 .

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THE PATHS TOWARDS CREATING A GLOBAL BRAND: THE ELEVEN SEGMENTS OF THE TRANSNATIONAL CONSUMER CULTURE
SOCIAL STATUS

Upper Class Upper Middle Class

(1) (5) (4)

(2)

(3) (7)

(6)

Post Modern

Middle Middle Class

Traditional

SocioSegment Critical Segment

S O C I A L

Mainstream Modern Segment Mainstream

Lower Middle Class (8)

Traditional Blue Collar Segment Counter Culture

C L A S S

(9)

(10)
Traditional Rural Segment

Lower Class

(11)
Underprivileged Segment

Tr adit ional BASIC ORIENTATION

Materialism Status & Property Consumption

Hedonism

Post Materialism

Subjecti sm

To preserve

To have& To defend

To buy& To consume

To indulge

To be & To share

To have & To sense& To indulge

Source : Adapted from Ueltzhoffer & Ascheberg in Transnational Consumer Culture & Social Millieus, Journal of Market Research Society, January 1999(( c) Sigma)

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THE PATHS TOWARDS CREATING A GLOBAL BRAND: THE FIVE SEGMENTS OF THE GLOBAL CONSUMERS
THE STRIVERS ( 23% of Adults in the World) They highly appreciate material wealth, material possessions, status, ambitions and power. Most of them are mature ages (half-way within average life expectancy ), skewed more among men. Most of them are found amongst the people in both developing and developed economies in Asia and the Pacific Rim THE DEVOUTS ( 22% of Adults in the World) They subscribe to more traditional compared to the Strivers. They highly appreciate loyalty, appreciate the elders and tend to be obedient to their advice. They are found only amongst the people in Asia Africa and the Middle East. As consumers, they would prefer local brands compared to international brands. THE ALTRUISTS ( 18% of Adults in the World) The Altruists are focused more towards outside of themselves. They are highly very well educated, and are very interested in social causes. They are skewed towards older age group (averaging at 44) and are found more among women. They are found mostly amongst the people in Latin America, North America and Russia THE INTIMATES ( 15% of Adults in the World) The Intimates are focused more towards relationships around household members, families, friends and business colleagues. They are found mostly amongst the people in United States of America, Britain and Central European Countries. They are the peoples people. Half of them are heavy user of media, particularly TV. THE FUN SEEKERS ( 12% of Adults in the World) The Fun Seekers are skewed towards younger age group, in fact they are the youngest. They are focused more towards seeking funs and adventurous experiences. They highly enjoy elegant appearances.. They frequent bars, discos, night clubs, restaurants and greedily grabbing electronic media. This group has the highest affinity to the global life styles. THE CREATIVES ( 10% of Adults in the World) The Creatives are found mostly amongst the techno-nerds, and highly appreciate learning and technology. As they very heavy users of the Internet, they are likely to be found in the highly developed countries.
Source : Adapted from,Charles Mitchell,A Short Course in International Business Culture , World Trade Press, Novato, CA, USA, 2000.

THE FIVE SEGMENTS OF GLOBAL CONSUMERS

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Pre-requisites to develop a Global Brand: Who are our targets?

1. Wealthy achievers, suburban areas. A-Class THRIVING 2. Affluent grays, rural areas. 3. Prosperous pensioners, retirement areas.

B-Class EXPANDING

4. Affluent executives, family areas. 5. Well-off workers, family areas.

6. Affluent urbanites, town & city . C-Class RISING 7. Prosperous professionals, metropolitan areas 8. Better off executives, inner city areas.
THE GROUPS OF SOCIAL STRATA

D-Class SETTLING

9. Comfortable middle ages, mature home owning areas.

10. Skilled workers, home owning areas.

E-Class ASPIRING

11. New home owners, mature communities. 12. White collar workers, better-off multi-ethnic areas

13. Older people, less prosperous areas

14. Council estate residents, better homes F-Class STRIVING 15. Council estate residents, high unemployment 16. Council estate residents, greatest hardship 17. People multi-ethnic, low-income areas

Source : CACI, 1997

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LEARNING FROM THE LEADERS: 100 MOST VALUABLE GLOBAL BRANDS

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THE TOP 100 GLOBAL BRANDS AND THEIR SLOGANS

B R A N D COCA-COLA MICROSOFT IBM GE NOKIA INTEL DISNEY FORD MC DONALDS AT&T MARLBORO MERCEDES CITIBANK TOYOTA HEWLETT-PACKARD CISCO SYSTEM AMERICAN EX PRESS GILLETTE MERRILL LYNCH SONY HONDA BMW NESCAFE COMPAQ ORACLE TAG-LINE Life tastes good Where do you want to go today? And, that's when it hits you. You are ready for IBM We bring good things to life Connecting people The center of your digital world Come and live the magic Better ideas. Driven by you Did somebody say Mc Donald? Now.. "We love to see you smile". Boundless (Come to) Marlboro Country Follow whoever you are Where money lives The car in front is a Toyota Invent Empowering the Internet generation Do not leave home without it. Innovation is Gillette Ask Merrill Change the way you see the world Independent thinking (Also:"Simplify") The ultimate driving machine Awaken your senses Inspiration technology Oracle software powers the Internet

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Source : Business Week, 2001

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THE TOP 100 GLOBAL BRANDS AND THEIR SLOGANS (Continued-1)

B R AN D BUDWEISER KODAK MERCK NINTENDO PFIZER GAP DELL GOLDMAN SACHS NIKE VOLKSWAGEN ERICSON HEINZ LOUIS VUITTON KELLOGG'S MTV CANON SAMSUNG SAP PEPSI XEROX IKEA PIZZA HUT HARLEY DAVIDSON APPLE GUCCI TAG-LINE True (Also "This Bud's for you") Share moments. Share life. It's your future. Be there. Feel everything Life is our life's work Gap Denim. Wear it now. Connecting to your needs Minds. Wide open. Just do it Driver wanted. Make yourself heard Mine's gotta have Heinz The spirit of travel Have you woken up to Kellogg's cornflakes? We are watching Imaging accross networks Everyone's invited--> DigitALL The best-run businesses run SAP The joy of Pepsi The digital document company Make a fresh start Great pizzas. Great time. The legend rolls on Think different The hands of Gucci

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50

Source : Business Week, 2001

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THE TOP 100 GLOBAL BRANDS AND THEIR SLOGANS (Continued-2)

B R A N D 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 KFC REUTERS SUN MICROSYSTEM KLEENEX PHILIPS COLGATE WRIGLEYS AOL YAHOO AVON CHANEL DURACELL BOEING TEXAS INSTRUMENTS KRAFT MOTOROLA LEVI'S TIME ROLEX ADIDAS HERTZ PANASONIC TIFFANY BP BACARDI TAG-LINE No one does chicken like KFC For people in the know Take it to the nth Thank goodness for Kleenex Let's make things better The world leader in oral care For a cleaner, whiter smile So easy to use, no wonder we are the World's No.1 Do you yahoo? Let's talk Share the fantasy The most powerful alkaline battery in the world One destination. A world of solutions The world leader in DSP and analog You know you want it Intelligence everywhere Originality. Integrity. Innovation. Both sides of the story explored weekly Perpetual Spirit. Long live sport Suddenly, you're free again Just slightly ahead of our time America's house of design since 1837 Beyond petroleum Latin spirit in everyone

Source : Business Week, 2001

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THE TOP 100 GLOBAL BRANDS AND THEIR SLOGANS (Continued-3)

76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 BRAND AMAZON.COM SHELL SMIRNOFF MOET&CHANDON BURGER KING MOBIL HEINEKEN THE WALL STREET JOURNAL BARBIE POLO/RALPH LAUREN FEDEX NIVEA STARBUCKS JOHNIE WALKER JACK DANIELLE ARMANI PAMPERS ABSOLUT GUINNES FINANCIAL TIMES HILTON CARLSBERG SIEMENS SWATCH BENETTON TAG-LINE A real company in a virtual world Moving at the speed of life There is vodka. And there's Smirnoff L'esprit Moet & Chandon It's all about the burgers Exceed. Why compromise It's all about the beers Adventure in capitalism Gotta B..... Active headquarters This is a job for FedEx It helps protect your skin Your home from home Keep walking Some things never change. Jack Daniel is one of them Design for the face We're right behind you. Every step of the way. Absolut revealed Good things come to those who wait No FT, no comments It happens at Hilton Probably the best beer in the world Be inspired Time is what you make of it United colors of Benetton

Source : Business Week, 2001

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GLOBAL BRAND NECESSITATES A WORLD CLASS ORGANIZATION

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THE PATHS TOWARDS DEVELOPING A WORLD CLASS ORGANIZATION: BUILDING THE REQUIRED CAPABILITIES
THE TWELVE BUSINESS CAPABILITIES Basic questions Are there broad lines & targets that effectively guide employees in shaping the firm of the future ?

No. Aspect 1 Mission & Vision

2 Customer Orientation Is satisfaction of customers' needs an important concern broadly shared within the firm ? 3 Corporate Culture 4 Organization & System 5 Planning & Intelligence 6 Human Resources Are there fundamental beliefs & values broadly shared by members of the firm ? Are the structure & systems of the firm effective in helping management to steer the firm in the desired direction? Are external & internal information effectively gathered & processsed to help management to steer the firm in the desired direction? How effective are the recruitment, development, deployment & mobilization of human resources ?

7 Technical Resources How effective are the acquisition, development, deployment & mobilization of tangible resources ? 8 Innovation 9 Market Strategy How effective are the acquisition, development & implementation of new ideas in all facets of the firm's operation ? How effective are the selection & strategic management of key products and markets ?

10 Marketing Operations How effective is the management of marketing activities ? 11 International 12 Performance How effective is the international management of human resources, technical resources, products & markets? How effective is the firm in obtaining postitive results from its actions?

Source: Jean Claude Jarreche, INSEAD (2002)

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BASIC CONCEPTS OF STRATEGY

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STRATEGY :
A Definition

Strategy : A strategy of an organization ( be it a corporation or a company or a social organization, etc) forms a comprehensive master plan, stating how the organization will achieve its mission and objectives. The strategy maximizes competitive advantages and minimizes competitive disadvantages to improve business position ( in the market and business results)

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STRATEGY: The Dimensions

Four dimensions of Strategy:

1. A perspective, that is a view of what an organization, (be it in business or social one) is to become: a vision and direction.
2. A position in the business world, which reflects decisions on types of products or services to be offered to a particular target market /customer selected. 3. A plan : on how and means of getting from here and now to there and then 4. A pattern of decisions and actions. As an example, Rolex always markets very expensive watches: they are applying high-end strategy

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STRATEGY: In Practical Applications

Strategy evolves over time , as organizations intentions and actions collide with and accommodate a changing reality. As an example, one might start with a perspective about the environment and the place of the organization within that. Then he/she concludes that perspective calls for the for a certain position for the organization. That certain position can only be achieved through a carefully crafted plan . In its turn, this plan is to be reflected in a pattern of decisions and actions over time. (This is called realized or emergent strategy) (Adopted from Mintzberg, 1994, The Rise and Fall of Strategic Planning)

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COMPETITIVE STRATEGIES:
Creating the Future Today!
There are always two parties : the Party of the Past -> The Establishment and the Party of the Future -> The Movement (Ralph Waldo Emerson)

NOT TO PREDICT THE FUTURE

THE GOAL
BUT TO IMAGINE A FUTURE MADE POSSIBLE BY

THE CHANGES IN

Technology Life-style Work-style Regulation Global Geopolitics Etc

THE FUTURE IS WHAT IS HAPPENING TODAY !

STRATEGY IS ABOUT SHAPING THE FUTURE !!

Every company is in the process of becoming, either an anachronism, irrelevant to the Future or a Harbinger of the Future Destiny is not a matter chance. It is a matter of choice. It is not a thing to be waited for; it is a thing to be achieved (William Jennings Bryan)
Source : Hamel & Prahalad, Competing for the Future , Harvard Business School Press, Boston, Massachusetts,1994

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STRATEGY: Practical Questions for Business Managers

Strategy: to maximize competitive advantages and to minimize competitive disadvantages to improve business position ( in the market and business results) What have we/you done to improve clients/customers service (today, this week, this month, the last three months, the last six months, the last twelve months) ? What have we/you done to improve clients/customers satisfaction (today, this week, this month, the last three months, the last six months, the last twelve months) ? What have we/you done to reduce costs (today, this week, this month, the last three months, the last six months, the last twelve months) ? What have we/you done to increase productivity and efficiency (today, this week, this month, the last three months, the last six months, the last twelve months) ? What have we/you done to increase revenues from new products and services (today, this week, this month, the last three months, the last six months, the last twelve months) ?

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STRATEGIC MANAGEMENT PROCESS:

An Overview of the Basic Elements

Strategy Content

Strategic Thinking:
The Strategy Formulation Process

Strategic Actions:

CONTEXT

The Strategy Implementation Process

EVALUATION AND CONTROL

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FOCAL POINTS OF DIFFERENT VIEWS ON STRATEGIES

STRATEGY
(in general)

CORPORATE STRATEGY

COMPETITIVE STRATEGY

Courses of Actions

Choices & Commitments

Competitors & Competition

Relationship Between ENDS and MEANS

Business Markets Products Services

PORTER Cost Differentiation Focus TREACY & WIERSEMA Operational Excellence Customer Intimacy Product Leadership 66

STRATEGIC ISSUES
REQUIREMENTS What are the specific requirements of each customer segment ? How will customer trade one feature of the product against another ?

WHAT ARE OUR CUSTOMERS REQUIREMENTS?

STRUCTURE OF DEMAND

How many different people are involved in the purchase decision? Do they have different requirements? Are there different customer segments which have different requirements? What / who are they? Are there conflicts in serving more than one group of customer segment? DYNAMICS OF DEMAND How will the market grow in the future ?

MEETS CUSTOMERS NEEDS BETTER

REQUIREMENTS

How well do the competitors meet customer needs? How easy would it be for our company to copy or vice versa?

A SUCCESFUL STRATEGY

WHAT DO OUR COMPETITORS OFFER?

STRUCTURE OF DEMAND DYNAMICS OF DEMAND

Which segments will this make the competitors strong in, or potentially strong?

How is the competitors likely to change to meet customers demand in the future?

STRUCTURE

What different elements of costs are involved in meeting different customers needs?

WHAT ARE THE COMPANYS COSTS?

DRIVERS DYNAMICS

What causes costs to be higher or lower ? How costs will change in the future ? For each elements of costs, what would be competitors costs?

AND AT LOWER COST

WHAT ARE OUR COMPETITORS EQUIVALENT? COSTS

STRUCTURE

What customers segments will this make competitors most competitive in ? What will causes the competitors costs to be higher or lower ? How will the competitors costs will change in the future?

DRIVERS DYNAMICS

Source : Braxton Associates, 1998

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References
Capon, Noel and James M. Hulbert, Marketing Management in the 21st Century, Prentice Hall, 2001 Davidson, Hugh, Even More Offensive Marketing, Penguin Books, 1997 Hiam, Alexander and Charles D. Schewe, The Portable MBA in Marketing, John Wiley & Sons, Inc., 1992 Jabbar, Rahim, Approaches towards Segmentation, Targeting & Positioning, 2002, (unpublished) Business Week, 2001, The 100 Most Valuable Global Brands

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