Docstoc

Brand extension

Document Sample
Brand extension Powered By Docstoc
					                        Part V



Managing Brand Offer Architecture
Managing the Brand Internationaly




              PSU - 2006 - Global Brand
                                           1
              Management - Alain Hutinel
            Managing Brand offer
                    Architecture
Or How to signify at the same time :
. a common reference of brand offerings
                and
. how they differ from each other
                and
. What the Brand stands for.



               PSU - 2006 - Global Brand
                                            2
               Management - Alain Hutinel
      Many different types of
             brands
   B2B                          Corporate
   B2C
                                 Commercial
   Web
   Trade                        Non-business (?)
   Local                            – Countries
   Regional                         – Official bodies
   National                         – Charity org.
   International                    – Politics/Polticians
   Worlwide (meta)                  – …


                 PSU - 2006 - Global Brand
                                                             3
                 Management - Alain Hutinel
Complex Brand Offer Architectures
    Product Brand : Exclusive name to a single
                                              Jean-Noel Kapferer

     product to assure individual positionning (Tide, Martini ……)

    Line Brand : Extend a concept across different
     product in segmented market or across similar markets
     (Renault ….)

    Range Brand : Use same name and promise in
     product categories with same ability (Green Giant …..)

    Umbrella Brand : Support products in different
     markets with each its own promise, Danon

  Source Brand : Support sub-brand names as above
  Endorsing Brand : Approve/garanty wide variety
     of product brands, line and range brands GE

    Marque : Endorsing (Corporate)
     Brand ….. PSU - 2006 - Global Brand                            4
                          Management - Alain Hutinel
    Brand extension/stretching
 Why extend ?
 What is Brand «stretching» ?
 Where to extend ?
 Risks
 Keys to success
 Fitting
 … why NOT extend ?
           PSU - 2006 - Global Brand
                                        5
           Management - Alain Hutinel
      Why extend brands ?
 increasing competition between less &
  larger players with global aspirations
  and ability to communicate globally
 towards saturation of markets
 similarity of brands’ offers attributes
 decreasing brand loyalty
 react to declining markets
 nourish the brand perceived vitality
               PSU - 2006 - Global Brand
                                            6
               Management - Alain Hutinel
What is the brand stretching ?
   It is the transfer of brand values on the new
    market

   It shows that the brand is not related
    directly to one sector but has values that can
    transcend different products categories


                   PSU - 2006 - Global Brand
                                                    7
                   Management - Alain Hutinel
 «Where” Stretching the Brand
 same category : no distance extension
 new sub-category : short distance
  extension
 new category : middle distance
  extension
 new activity : long distance extension
 Geographic expansion

               PSU - 2006 - Global Brand
                                            8
               Management - Alain Hutinel
         Dim Brand stretching




Comfort, liberty
                   PSU - 2006 - Global Brand
                                                9
                   Management - Alain Hutinel
Low cost in launching Danone Activ
                       and Talians




           PSU - 2006 - Global Brand
                                        10
           Management - Alain Hutinel
        Barilla move into biscuits




taste, savor, Italian way of cooking
                PSU - 2006 - Global Brand
                                             11
                Management - Alain Hutinel
              Swatch move into jewel




Modern, Quality/price, Variety, Innovative design
                    PSU - 2006 - Global Brand
                                                    12
                    Management - Alain Hutinel
    Caterpillar moved into shoes and
                             clothing




reliable, resistant, masculine
                   PSU - 2006 - Global Brand
                                                13
                   Management - Alain Hutinel
     Taillefine move into biscuits and
                                 water




Non fat, healthy
                   PSU - 2006 - Global Brand
                                                14
                   Management - Alain Hutinel
Mars move into ice cream




 gourmandise, rich, sweet
        PSU - 2006 - Global Brand
                                     15
        Management - Alain Hutinel
        Brand stretching risks
   Distort/Dilute the values of the Brand

   Lose the original consumers




                   PSU - 2006 - Global Brand
                                                16
                   Management - Alain Hutinel
        Chevignon brand dilution




modern, adventurous, exquisite

                    PSU - 2006 - Global Brand
                                                 17
                    Management - Alain Hutinel
Pierre Cardin brand dilution




         PSU - 2006 - Global Brand
                                      18
         Management - Alain Hutinel
    Keys to success in brand
                  extension
              Brand identity
       Fit                                Relevance



  Brand
                                          Market’s values
extension              Added
                       value

             PSU - 2006 - Global Brand
                                                      19
             Management - Alain Hutinel
                                            «Fitting»
 Perceived brand «typicality», ie product
  categories which «go well» with the
  mother brand
 Emotional agreement with the potential
  extension product categories
 tested transferability of the brand’s
  intangibles and of the brand’s «vision»,
  brand’s identity & brand project.
               PSU - 2006 - Global Brand
                                                    20
               Management - Alain Hutinel
PSU - 2006 - Global Brand
                             21
Management - Alain Hutinel
PSU - 2006 - Global Brand
                             22
Management - Alain Hutinel
     The success of pen, lighter,
           and razors Bic




Accessible, practical, disposable
                   PSU - 2006 - Global Brand
                                                23
                   Management - Alain Hutinel
   The failure of Bic perfume




The Bic values are not relevant to perfume
               PSU - 2006 - Global Brand
                                            24
               Management - Alain Hutinel
This failure did not dilute the
brand essence of Bic. Why ?
    Because the Bic perfume was
   coherent with Bic Brand identity

 Brand                                     Brand
identity                                 extension




            PSU - 2006 - Global Brand
                                                     25
            Management - Alain Hutinel
       Economic evidences of brand
                        extensions
Higher survival rate of products
Higher chances of success, due to :
         . trial rate
         . conversion rate
         . loyalty rate (repurchase)
Lower launch cost




                 PSU - 2006 - Global Brand
                                              26
                 Management - Alain Hutinel
     Why NOT extend brands ?
 Unclear/no Brand Identity
 High brand switching pattern
 Unwatched Overheads Cost increase
 No sufficient resources for success
 No sufficient “Fit” and Relevance
 ….


              PSU - 2006 - Global Brand
                                           27
              Management - Alain Hutinel
        CATEGORY EXTENSIONS


succeeded                        failed
                                  Campbell ketchup
 Adidas cosmetics
                                  Bic parfumes
 Harley Davidson
                                  Levi’s suits
  cosmetics
                                  Xerox computers
 Colgate toothbrush
                                  Clorox washing powder
                                  Calgon washing powder
                                  Crystal Pepsi un-cola



                  PSU - 2006 - Global Brand
                                                           28
                  Management - Alain Hutinel
Procter & Gamble

       Clairol

Herbal Essences




   PSU - 2006 - Global Brand
                                29
   Management - Alain Hutinel
  IMAGE TRANSFER

        CLAIROL

HERBAL ESSENCES

    CLAIROL
    HERBAL ESSENCES

       PSU - 2006 - Global Brand
                                    30
       Management - Alain Hutinel
PSU - 2006 - Global Brand
                             31
Management - Alain Hutinel
PSU - 2006 - Global Brand
                             32
Management - Alain Hutinel
IMAGE TRANSFER




   PSU - 2006 - Global Brand
                                33
   Management - Alain Hutinel
        Managing the Brand in the
                  Global Context



= Cross-Cultural Branding within the Global
Business Strategy Game



               PSU - 2006 - Global Brand
                                            34
               Management - Alain Hutinel
Mega Brands 1




  PSU - 2006 - Global Brand
                               35
  Management - Alain Hutinel
Mega Brands ?




  PSU - 2006 - Global Brand
                               36
  Management - Alain Hutinel
Mega Brands ?




  PSU - 2006 - Global Brand
                               37
  Management - Alain Hutinel
Mega Brands ?




  PSU - 2006 - Global Brand
                               38
  Management - Alain Hutinel
Mega Brands ?




  PSU - 2006 - Global Brand
                               39
  Management - Alain Hutinel
          International Branding
 What has to be adapted ?
 Chinese/Asian Brands


 How much Brand origin is important ?
 American Dream, …. And next ?




              PSU - 2006 - Global Brand
                                           40
              Management - Alain Hutinel
              The View from Honda
“We are the most international
 of the Japanese companies. At
 the moment we are the most
 diversified, and we will be
 more diversified in the future.
 Still, I think it would be very
 hard to build a one-type world
 car. In the end, I don’t think it
 would be very efficient.”
                       PSU - 2006 - Global Brand
                                                    41
                       Management - Alain Hutinel
---Nobuhiko Kawamoto
         The View from Toyota
Our global strategy used to center on “world cars,”
which we would modify slightly to accommodate
demand in different markets. Today our focus is
shifting to models that we develop and
manufacture especially for selected regional
markets.
                     Examples
 North America: Avalon and Camry coupe and station
wagon. 1997 Sienna minivan.
 NUMMI Joint Venture: Tacoma light pickup.
Europe: Carina E
 Southeast Asia: Toyota Utility Vehicle (Kijang in
Indonesia, Tamaraw in Philippines)
                  PSU - 2006 - Global Brand
                                                 42
                  Management - Alain Hutinel
   "Our vision has been described to you
for a decade. We believed that only
businesses that were number-one or
number-two in their markets could win
in the increasingly competitive global
arena. Those that could not were to be
fixed, closed or sold."
          -   John F. Welch, Jr.
                             Chairman and CEO, General
                                      Electric
                  PSU - 2006 - Global Brand
                                                         43
                  Management - Alain Hutinel
Lifestyles are expressions
of sub-cultures
                               Signs : icons, indexes
                               & Symbols
                                   Heroes
                                       Rituals


               Expressions of           Values            BRANDS ?
                  cultures



A value is a broad
Tendency to prefer
a certain state of affairs
over others
                             PSU - 2006 - Global Brand
                                                                     44
                             Management - Alain Hutinel
Value Structure Maps (VSM) and
           Marketing
    The name of the game is to link
     marketing offer attributes and benefits
     to cultural values




                  PSU - 2006 - Global Brand
                                               45
                  Management - Alain Hutinel
          3 Levels of associations
    Attributes
               - concrete
               - abstract
    Benefits/Consequences
               - functional
               - psychological
    Values
               - Instrumental
               - Terminal
To be done for the category and each brand in the category

                          PSU - 2006 - Global Brand
                                                             46
                          Management - Alain Hutinel
PSU - 2006 - Global Brand
                             47
Management - Alain Hutinel
          Culture and Consumer
                 Behavior
Consumption values
 Functional Values.                Relate to needs and satisfaction from use
    and attributes
   Social Values.         Relate to perceived utility in association with one
    or several social groups and self-building. Includes symbolic values of
    products and Brands.
   Emotional Values.             Relate to emotional arousal linked to
    contact with or thinking of product/Brand
   Epistemic Values.Related to novelty seeking, curiosity arousal,
    knowledge seeking, innovation drive, variety
   Conditional Values.               Related to capacity to provide temporary
                     functional or social values
                              PSU - 2006 - Global Brand
                                                                            48
                              Management - Alain Hutinel
             Cultural Universals
   Athletics                             Etiquette
   Body adornment                        Family feasting

   Cooking                               Food taboos

   Courtship                             Language
                                          Marriage
   Decorative arts
                                          Mealtime
   Education
                                          Mourning
   Ethics
                                          Music
   Property rights
                                          Status differentiation
   Religious rituals


                        PSU - 2006 - Global Brand
                                                                    49
                        Management - Alain Hutinel
     Rokeach’s List of Terminal
     (desired end-state) Values
   A comfortable life                   Inner harmony
   An exciting life                     Mature love
   A sense of                           National security
    accomplishment
                                         Pleasure
   A world at peace
                                         Salvation
   A world of beauty
   Equality                             Self-respect

   Family security                      Social recognition
   Freedom                              True friendship
   happiness                            wisdom

                         PSU - 2006 - Global Brand
                                                               50
                         Management - Alain Hutinel
       America’s enduring values
 Freedom (political, free                Patriotism (loyalty to the
  speech)                                  country)
 Equality before law                     Democracy (belief that the
 Equality of opportunity (as              judgment of the majority
  expression of freedom +                  should rule)
  individualism in the market             American exceptionalism
  place)                                   (moral mission of America)
 Fairness (get what you                  CariIng beyond self
  deserve as a consequence                Religion (transcendental)
  of your own individual
  actions)                                Luck (good fortune)
 Achievment (efficacy of                 … family (?)
  individual efforts)


                        PSU - 2006 - Global Brand
                                                                 51
                        Management - Alain Hutinel
                  Belgian Values (1992)
   Having your own house                       Better world for fellow men

   Thrift, frugality                           Better Environment, love
                                                   nature
   Progeny, having descendants
                                                Self-esteem and self-respect
   Helathy & healthy life
                                                Being respected by others
   Safety, living in a safe world
                                                Being admired, prestigious,
   Security (count on people)
                                                   have satus and success
   Being painless, fearless with good
                                                Have leadership and power
    fortune
                                                Ability to be oneself as one is
   Keeping all one has as it is
                                                Freedom, independance in
   Paying attention to one-self
                                                   choice
   Romanticism (being in love)
                                                Develop one’s abilities &
   Erotic love, sensuality                        creativity
   Strong intimate partner                     Having one’s own lifestyle
    relationship
                                                Being stressless, inner
   Love for children                              harmony
   Strong friendship                           Enjoy simple things in life
   Strong family ties                          Leading a prosperous,
                                  PSU - 2006 - Global Brand
                                                                                52
                                                   comfortable, luxurious life
                                  Management - Alain Hutinel
PSU - 2006 - Global Brand
                             53
Management - Alain Hutinel
PSU - 2006 - Global Brand
                             54
Management - Alain Hutinel
First Starbucks Location in London
             9/17/98




            PSU - 2006 - Global Brand
                                         55
            Management - Alain Hutinel
PSU - 2006 - Global Brand
                             56
Management - Alain Hutinel
PSU - 2006 - Global Brand
                             57
Management - Alain Hutinel
PSU - 2006 - Global Brand
                             58
Management - Alain Hutinel
Some Branding Issues




    PSU - 2006 - Global Brand
                                 59
    Management - Alain Hutinel
 Labels and « appellations » ?
 Retail/trade Brands ?
 WebBrands potential ?
 Corporate Brands ?
 Anti Globalisation ?
 Non Western Brand cultures ?
 AntiBrand laws ?
 Valuation/accounting ?
 Citizen Brand ?


               PSU - 2006 - Global Brand
                                            60
               Management - Alain Hutinel

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:76
posted:9/17/2010
language:English
pages:60