Learning Objectives

10
“ Brand Management” MK542E Brand Architecture Dr. Dildar Hussain Assistant Professor ESC Rennes School of Business Office No. 315 [email protected] Overview What brand architecture or brand structure is Different branding approaches How to choose an appropriate brand strategy Environmental pressure on branding Learning Objectives Appreciate the concept of brand structure Select an appropriate brand branding approach Examine the growth of licensing and strategic alliances in branding Examine brand structure in international markets 2 Chapter Overview 2

Transcript of Learning Objectives

“ Bra

nd

Ma

na

ge

me

nt”

MK

54

2E

Bra

nd

Arch

itectu

re

Dr. D

ilda

rH

ussa

inA

ssistan

t Pro

fesso

r

ESC

Re

nn

es S

cho

ol o

f Bu

sine

ss

Office

No

. 31

5

dild

ar.h

ussa

in@

esc-re

nn

es.fr

�O

ve

rvie

w

�W

ha

t bra

nd

arch

itectu

re o

r bra

nd

structu

re is

�D

iffere

nt b

ran

din

g a

pp

roa

che

s

�H

ow

toch

oo

sea

na

pp

rop

riate

bra

nd

strate

gy

�E

nviro

nm

en

tal

pre

ssure

on

bra

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ing

�Le

arn

ing

Ob

jectiv

es

�A

pp

recia

teth

eco

nce

pt

of

bra

nd

structu

re

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lect

an

ap

pro

pria

teb

ran

db

ran

din

ga

pp

roa

ch

�E

xam

ine

the

gro

wth

of

licen

sing

an

dstra

teg

ica

llian

ces

inb

ran

din

g

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xam

ine

bra

nd

structu

rein

inte

rna

tion

al

ma

rkets

2

Ch

ap

ter O

vervie

w

2

�W

ith m

ore

targ

ete

d m

ark

etin

g, it h

as b

eco

me

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ore

com

ple

x

�G

lob

al

�D

yna

mic

�B

ran

ds a

re o

wn

ed

by

oth

er b

ran

ds w

hich

, in tu

rn,

are

ow

ne

d b

y a

no

the

r set o

f bra

nd

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�B

ran

din

g m

an

ag

em

en

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w a

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ot

all a

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ut m

an

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ing

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le b

ran

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ut m

an

ag

ing

po

rtfolio

s

33

Intro

du

ction

�S

am

e co

mp

an

y ca

n se

lls pro

du

cts to d

iffere

nt se

gm

en

ts

�D

iffere

nt p

rod

ucts m

ay

be

po

sition

ed

diffe

ren

tly

�S

om

e th

ou

gh

ts ab

ou

t bra

nd

s

�B

ran

din

g, a

n im

po

rtan

t top

ic of in

tere

st for re

sea

rch

�B

eco

min

g d

ifficult to

crea

te n

ew

bra

nd

s

�In

futu

re, b

uild

ing

an

bra

nd

ma

y on

ly be

po

ssible

thro

ug

h a

cqu

isition

�O

the

r issue

s inclu

de

, cha

ng

ing

bra

nd

ma

na

ge

me

nt , ta

keo

vers, h

igh

turn

-ove

r of b

ran

d

ma

na

ge

rs

�Fo

cus o

n e

xistin

g b

ran

ds a

nd

corp

ora

te id

en

tities h

as in

crea

sed

4

From

Bra

nd

Ma

na

ge

me

nt to

Bra

nd

Po

rtfolio

Ma

na

ge

me

nt

4

�B

ran

d p

ortfo

lios a

re re

sult o

f a p

roce

ss

�B

ran

d a

ccum

ula

tion

, tran

sition

, an

d re

du

ction

of b

ran

ds

�O

rga

niza

tion

of re

latio

nsh

ips b

etw

ee

n b

ran

ds

�D

eve

lop

me

nt o

f bra

nd

po

rtfolio

s to g

ain

com

pe

titive a

dva

nta

ge

�T

he

refo

re, b

ran

d p

ortfo

lio d

ea

l with

bo

th th

e in

tern

al a

nd

ex

tern

al e

nv

iron

me

nts

�B

ran

d p

ortfo

lio in

flue

nce

s (CIM

, 20

03

)

�R

& D

�M

arke

ting

reso

urce

s

�C

ost e

fficien

cy

�G

row

th, e

tc. 5

Stra

teg

ic Ba

lan

ce o

f Bra

nd

Po

rtfolio

Ma

na

ge

me

nt -

1

5

�S

ix w

ay

s in w

hich

po

rtfolio

ma

na

ge

me

nt co

uld

en

ha

nce

gro

wth

�C

lea

r prio

ritizatio

n o

f futu

re fo

cus b

y ma

jor m

arke

t

�P

rioritiza

tion

by b

ran

d a

nd

pro

du

ct

�C

on

cen

tratio

n o

f exp

en

ditu

re o

n p

riority m

arke

t,

bra

nd

s an

d p

rod

ucts

�O

pe

ratio

na

l cost sa

ving

thro

ug

h sim

plifie

d b

usin

ess

�D

ispo

sal o

f bra

nd

s tha

t do

n’t fit

�G

ap

filling

by p

rod

uct d

eve

lop

me

nt a

nd

acq

uisitio

n

6

Stra

teg

ic Ba

lan

ce o

f Bra

nd

Po

rtfolio

Ma

na

ge

me

nt -

2

6

�F

ive

step

ap

pro

ach

for

op

timizin

g b

ran

d p

ortfo

lio

�D

ecid

e o

n b

ran

ds to

rev

iew

�S

ho

rtlist all o

f the

bra

nd

s an

d a

na

lyze

ea

ch o

the

r’s

con

tribu

tion

to th

e co

mp

an

y (co

ntrib

utio

n)

�A

ssess b

ran

ds a

ccord

ing

to cu

rren

t ma

rke

t

pe

rform

an

ce (tra

ction

) an

d fu

ture

pro

spe

cts

(mo

me

ntu

m)

�T

he

bra

nd

s are

classifie

d a

lon

g th

ose

thre

e d

ime

nsio

ns

(con

tribu

tion

, tractio

n, m

om

en

tum

) to id

en

tify ch

alle

ng

es a

nd

op

po

rtun

ities a

nd

en

ab

le b

ran

ds to

be

sorte

d in

to

�P

ow

er: A

bra

nd

tha

t ne

ed

s to b

e d

efe

nd

ed

fero

ciou

sly

�Sle

ep

er: A

bra

nd

tha

t with

a little

track

ing

can

bu

ild in

to a

po

we

r bra

nd

�Slid

er: A

valu

ab

le b

ran

d th

at h

as lo

st mo

me

ntu

m a

nd

ne

ed

s imm

ed

iate

inte

rven

tion

7

Stra

teg

ic Ba

lan

ce o

f Bra

nd

Po

rtfolio

Ma

na

ge

me

nt -

3

7

�So

ldie

r: A so

lid b

ran

d th

at co

ntrib

ute

s qu

ietly

with

ou

t ne

ed

for m

uch

ma

na

ge

me

nt a

tten

tion

�B

lack

ho

le: A

bra

nd

tha

t sucks u

p re

sou

rces a

nd

ma

y or m

ay n

ot e

ver p

ay o

ut

�R

ocke

t: A b

ran

d th

at is o

n its w

ay to

po

we

r-bra

nd

statu

s

�W

allflo

we

r: A sm

all, u

nd

era

pp

recia

ted

bra

nd

with

loya

l custo

me

rs, ofte

n u

nd

er p

rices a

nd

un

de

r ma

rkete

d

�D

iscard

: A b

ran

d th

at sh

ou

ld h

ave

be

en

disco

ntin

ue

d ye

ars a

go

�T

he

ob

jectiv

es fo

r ind

ivid

ua

l bra

nd

are

tied

tog

eth

er in

to a

n o

ve

rall p

lan

, wh

ich w

ill

inclu

de

an

y ch

an

ge

s to th

e ro

ster, b

ran

d a

rchite

cture

an

d re

sou

rce a

lloca

tion

8

Stra

teg

ic Ba

lan

ce o

f Bra

nd

Po

rtfolio

Ma

na

ge

me

nt -

4

8

�S

ix b

ran

d n

am

ing

strate

gie

s

�C

orp

ora

te b

ran

d n

am

e

�C

om

pa

ny n

am

es a

cross virtu

ally a

ll the

ir pro

du

ct ran

ge

�Sh

ell, K

ello

g’s

, Tota

l

�H

ou

se b

ran

d n

am

e

�G

rou

p o

f com

pa

nie

s /bra

nd

s

�V

W g

rou

p

�Fa

mily

bra

nd

na

me

s

�Fa

mily o

f pro

du

cts

�N

estle

9

Bra

nd

Hie

rarch

y -1

9

�M

on

o b

ran

ds

�In

de

pe

nd

en

t bra

nd

s

�P

rocto

r & G

am

ble

(Arie

l)

�V

irtua

l Bra

nd

s

�U

sed

to id

en

tify varia

nts o

f pro

du

cts

�?

??

�D

escrip

tion

�U

sed

to d

escrib

e a

varia

nt o

f a p

rod

uct w

ith d

escrip

tion

�K

no

rr be

ef sto

ck cu

be

s

10

Bra

nd

Hie

rarch

y -2

10

�M

on

olith

ic structu

res

�O

rga

niza

tion

s usin

g o

ne

na

me

an

d

on

e visu

al style

�E

nd

orse

d stru

cture

�C

orp

ora

te id

en

tity use

d in

asso

ciatio

n

with

na

me

of su

bsid

iary /b

ran

d

�C

orp

ora

te d

om

ina

nt

�M

ixed

bra

nd

s

�B

ran

d d

om

ina

nt

�B

ran

de

d id

en

tities

�To

tally d

iffere

nt b

ran

d n

am

es a

nd

visua

l styles

�M

on

o b

ran

ds

11

Bra

nd

Hie

rarch

y -3

11

�C

ho

ices fo

r bra

nd

ing

in in

tern

atio

na

l con

tex

t

�U

se th

e sa

me

bra

nd

in d

iffere

nt co

un

tries

�Le

vera

ge

bra

nd

stren

gth

acro

ss bo

un

da

ries

�M

ain

tain

loca

l bra

nd

s to m

ee

t loca

l custo

me

rs’

pre

fere

nce

s

�C

ho

ose

a b

ran

d stru

cture

or a

rchite

cture

tha

t

suits

�C

orp

ora

te-d

om

ina

nt stru

cture

�P

rod

uct-d

om

ina

nt stru

cture

�H

yb

rid b

ran

d stru

cture

12

Inte

rna

tion

al B

ran

d S

tructu

re -

1

12

�D

ete

rmin

an

ts of in

tern

atio

na

l bra

nd

structu

re

�F

irm-b

ase

d fa

ctors

�O

rga

niza

tion

al stru

cture

�E

xpa

nsio

n stra

teg

y

�M

od

e o

f exp

an

sion

(acq

uisitio

ns, o

rga

nic g

row

th

or stra

teg

ic allia

nce

s)

�T

he

imp

orta

nce

of co

rpo

rate

ide

ntity

�D

iversity o

f pro

du

ct line

s an

d p

rod

uct d

ivision

s

�P

rod

uct m

ark

et ch

ara

cteristics

�N

atu

re o

f the

pro

du

ct ma

rket(s)

�W

he

the

r ho

mo

ge

ne

ou

s ma

rket o

r glo

ba

l con

sum

ers

�M

arke

t inte

gra

tion

an

d co

mp

etito

rs, cultu

ral e

mb

ed

de

dn

ess

of p

rod

uct

�P

rod

uct m

ark

et ch

ara

cteristics

13

Inte

rna

tion

al B

ran

d S

tructu

re -

2

13

�F

rom

mo

no

bra

nd

s to co

rpo

rate

bra

nd

�Sim

ple

r an

d co

st effe

ctive

�M

arke

t com

ple

xities

�C

om

pe

titive p

ressu

re

�F

rom

corp

ora

te b

ran

ds to

mo

no

bra

nd

s

�M

arke

t seg

me

nta

tion

�D

iffere

ntia

tion

to a

void

can

nib

aliza

tion

�Fa

ilure

in fin

din

g syn

erg

ies o

f corp

ora

te b

ran

din

g

�Fro

m co

rpo

rate

bra

nd

s to m

on

o b

ran

ds

�A

nti-g

lob

aliza

tion

mo

ve

me

nts

14

En

viron

me

nta

l Pre

ssure

on

Bra

nd

ing

14

�Lice

nsin

g a

con

tractu

al p

erm

ission

to u

se a

bra

nd

in a

ssocia

tion

with

a d

efin

ed

pro

du

ct, for a

de

fine

d

pe

riod

of tim

e, in

a d

efin

e te

rritory

�A

bra

nd

ow

ne

r can

ex

ten

d tra

de

ma

rk o

r cha

racte

r

from

its prin

cipa

l en

viro

nm

en

t on

to to

pro

du

cts of

a co

mp

lete

ly d

iffere

nt n

atu

re

�Lice

nsin

g ca

n

�E

xpa

nd

the

pro

du

ct po

rtfolio

�D

rive n

ew

reve

nu

e stre

am

s thro

ug

h lice

nsin

g o

pp

ortu

nitie

s

�In

crea

se th

e b

ran

d g

lob

al a

wa

ren

ess

�In

spire

custo

me

r loya

lty an

d b

uild

bra

nd

eq

uity

�Fu

el va

lua

ble

pro

mo

tion

al a

nd

reta

il pa

rtne

rship

s

�M

ake

the

bra

nd

mo

re life

style o

rien

ted

15

Ho

w C

an

Bra

nd

Licen

sing

Bo

ost B

usin

ess?

15

�S

trate

gic Q

ue

stion

s

�W

ha

t is strate

gic b

en

efit o

f licen

sing

?

�W

ha

t are

the

targ

et p

rod

uct ca

teg

orie

s?

�H

ow

is the

licen

sing

strate

gy re

late

d to

the

bra

nd

strate

gy?

�R

eso

urce

s an

d ca

pa

bilitie

s Qu

estio

ns

�D

oe

s the

com

pa

ny h

as e

xpe

rien

ce in

an

d n

eg

otia

ting

an

d d

raw

ing

licen

sing

ag

ree

me

nts?

�W

ha

t is curre

nt n

ew

pro

du

ct de

velo

pm

en

t pro

cess?

�Is th

e co

mp

an

y pre

pa

red

to ca

rry ou

t the

tech

nica

l insp

ectio

n o

f the

licen

see

?

�W

ha

t sup

po

rt will th

e co

mp

an

y offe

r to th

e lice

nse

e?

�D

oe

s the

com

pa

ny h

as re

sou

rces to

imp

lem

en

t the

licen

sing

strate

gy?

�E

nfo

rcem

en

t of co

py rig

hts ?

??

??

??

??

?

16

Bra

nd

Licen

sing

–M

ore

tha

n P

rod

uct E

xten

sion

16

17

Bra

nd

Stru

cture

/ Arch

itectu

re o

f VW

Gro

up

17

Bra

nd

Stra

teg

y P

ositio

ns P

rod

ucts W

orld

wid

e

18

Ca

se S

tud

y

18

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Vid

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ussa

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