4_brandstrategicassets.pdf

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Brand Management

MK542E

Brands as Strategic Assets

Dr. Dildar Hussain Assistant Professor

ES !ennes Sc"ool of Business

#ffice $o. %2& dildar."ussain'esc(rennes.fr

Overview

Strategic im)ortance of *rands

Brands as +alue assets ,"en *u-ing or selling *usinesses

Brands in SMEs

Learning Objectives

Ha+e an o+er+ie, of literature

nderstand cor)orate(*ased +ie, of *randing

Discuss role of senior management / E# as *rand custodians

Discuss *rand de+elo)ment in SMES

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"a)ter #+er+ie,

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Traditionally, brand management seen as a function of marketing

Brands more important in FMC s !!!!

Managed by marketers and advertising agencies

Brands transcending t"eir role in marketing

Companies started to view brands as strategicassets since #$$%s

Becoming more of a strategic issue

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0ntroduction

Literature since #$$%s suggests viewing brands asstrategic assets

Corporate based view of branding

Brands as 1e- strategic instruments

Heart of a *usiness s com)etiti+e )osition

Basis of long term com)etiti+e ad+antage *ased onlong term relations"i) ,it" t"e customers

Branding s"ould go beyond communication

S"ould *e regarded as integrated *usiness )rocess

S"ould *e em*edded ,it" ,"ole com)an- not onl- t"e mar1eting de)artment

Branding *ecomes t"e strategic direction of t"e organi3ation

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Brands as Strategic Assets A !e+ie, of t"e iterature ( 6

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Brands e&press t"e company's core values

T"us it becomes corporate brand

(owerful resource for creating s"are"older andlong term value

Companies s"ould s"ift from brand strategy tobrand)based strategy

Branding develops a strong bond between t"e company and customers w"ic" may lead to

"ange to com)letel- different )roducts

7or instance consumers need *an1ing ser+ices not *an1s

!etailers in t"e financial ser+ices mar1et

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Brands as Strategic Assets A !e+ie, of t"e iterature 8 2

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Branding is no longer being a sole responsibility ofmarketers

Brands are t"e core of our *usiness. 9e ,ould: if ,e so,is"ed su*(contract all t"e )roduction: sales and ser+ice functions and:

)ro+ided ,e retained o,ners"i) of our *rands: ,e ,ould continue to *e successful and )rofita*le. 0t is our *rands t"at )ro+ide t"e )rofits for toda- and guarantee t"e )rofits for t"e future ;Sir Allen S"e))ard: E# of oug" com)etition

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Brands as Strategic Assets An 0ndustr- Pers)ecti+e 8 6

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Brand management becomes even more importantboard room issue in case of w"en badly publici*ed

+ingle incident can damage brand significantly and it may take time to recover

Mart"a Ste,art 8 insider trading

Enron 8 falsification of financial information ;?@(6=

Enron s accountant s Anderson Art"ur also ,ent *an1ru)t

$i1e ( s,eats"o)s in Asia

oca ola ( contaminated o1e in Belgium

"r-sler 8 Australia

"ttps --www.youtube.com-watc"!v/kb0n123s456

7eputation risk is t"e single biggest business "a*ard according to a survey in t"e 4+8

"ttps --www.youtube.com-watc"!v/919:; v


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:ncreased emp"asis on corporate branding

More )roducts s"o,ing com)an- logo on )ac1aging

Pre+iousl- onl- )roduct *rand dis)la-ed

>argets communicating ,it" ,"ole s)ectrum ofsta1e"olders not onl- consumers

>o corporation "as so far been focusing w"ole corporatestrategy around brands

0t could lead to +irtual cor)orations and outsourcing ,"ole range of acti+ities

0t ma- *e necessar- to maintain a certain le+el of control o+er ot"er acti+ities

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+ome industries "ave been slow to adopt branding-brand management t"an ot"ers

Branding often becomes critical w"en competitors come in t"e picture

0arly adopters

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+i& steps for creating, defining, and managing brandssuggested by (ettis particularly for "i)tec" products

0dentif- t"e Fuestions t"at need to *e ans,ered and define t"e )ro*lem;s= to *e sol+ed

onduct Fualitati+e and Fuantitati+e researc" to understand,"o customers are: "o, t"e- )ercei+e -our and ot"er *rands:and t"e *u-ing )rocess

Define elements of -our *rand ;)ositioning: identit-: naming: etc.=

De+elo) a strateg- and mar1eting communication )lan

reate and e ecute integrated mar1eting communication )rogram

Manage *rand continuousl- and trac1 it t"roug" researc" to gro,: maintain and le+erage*rand eFuit-

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Brands as Strategic Assets An 0ndustr- Pers)ecti+e 8 &

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+M0s branding is a new field in branding researc"

+till at e&ploratory stage

+M0s' business be"avior differs from L+0s

+M0s are c"aracteri*ed by

!esource limitations

Strong influence of o,ner on decision ma1ing

SMEs often craft t"eir mar1eting strategies t"roug" net,or1s

7irm +alues are communicated t"roug" *usiness and social interactions: ,"ic" are )art ofSMEs dail- routines

0n contrast to SEs: *randing and *rand management is not muc" institutionali3ed

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Brands as Strategic Assets Small +s arge om)an- Pers)ecti+es

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Benefits

Product differentiation

ustomers lo-alt-: *etter )erformance

En"ancing +alue to customers

Sur+i+e for a longer )eriod of time

Barriers

imited resources to conduct *randing acti+ities

ac1 of +ision/ strategic orientation

0nformal decision )rocess

0n+estments seen as costs

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Benefits of and Barriers to Brand De+elo)ment in SMEs

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?ecision making

7le i*ilit-

S)eed of reaction

E-e for mar1et o))ortunities

Marketing and Branding

Position in net,or1s

Direct communication ,it" clients: su))liers and +arious sta1e"olders to *uild trust and s,a) fa+ors

reating )assion for *rand t"roug"out t"e com)an- is im)ortant and "as to *e done *- t"eentre)reneur "im/"erself

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SMEs A))roac" to Decision(Ma1ing: Mar1eting and Branding

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Communicating a brand is not difficult for +M0s

0stablis"ing a clear positioning is difficult

Four types of or p"ases in +M0 brand development

Beginning and underlying brands

Brands/ com)anies Gust esta*lis"ed

A,areness of *randing in management needs to gro,

om)anies failing to do so or lac1ing resources to im)lement )lans ma- sta- at t"e same

)osition

0merging brands

E+er-one in t"e organi3ation is a,are of need for *randing

>"e firm ma1es resources a+aila*le for creating a strong *rand ;alt"oug" it ma- *e difficult=

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Brand De+elo)ment in SMEs ( 6

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0stablis"ed brands

>"e o,ner and t"e organi3ation are determined to *uild u) a strong *rand

>"e- are a*le to ac"ie+e t"is o*Gecti+e

A "ig" degree of *rand a,areness "as *een attained

>"e- canmaintain and en"ance t"eir )osition

@istorical brands

>"e *rands t"at "a+e ac"ie+ed a reasona*le of recognition des)ite of little organi3ational dedication

Mostl- t"e- are e ce)tions o,ing to t"e e+ents in t"e )ast


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Brand De+elo)ment in SMEs 8 %

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iven limited knowledge and know)"ow in branding+M0s would benefit from COO

+M0s can use t"e COO effect to support t"eir brandbuilding efforts

T"is could provide a multiplier effect especially in foreign markets

:mports from developed countries are generallyseen as better off in terms of design, tec"nology,skills, and product 3uality

Consumer animosity!!!

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Brand Management and ountr-(of(#rigin ; ##= Effects

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Brands are about products and services

(eople be"ind t"ose products and services arean important element

0mployees bring brand to lifeA t"ey are itsultimate custodians

Communicating brands values to staff ine3ually important

Leaders"ip by e&ample is one of best forms

@7 policies s"ould reflect t"e brand value

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0nternal Branding

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B78>?:> >OT)FO7 (7OF:T+

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ase Stud-

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http://www.youtube.com/watch?v=JtiH e !"!#

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