brand value chain & equity
TRANSCRIPT
Brand Value Chain & Brand Value Chain & Brand EquityBrand Equity
Dr. Veena TewariDr. Veena Tewari
What is a brand ?
A traditional scenario of market
Company AConsumer
Product / services
In a traditional market scenario, the company is catering to the consumer.The number of competitors are small.In these markets the companies can come with advanced technologies and other strategies to capture more market share.(The size and power of the players is important.)
Company B
Company C
What is a brand ?
Company A
ConsumerProduct / services
In complex markets, the differences between companies are not much.The companies can not differentiate much themselves from others on the basis of quality and technology etc. factors as all the companies are competent enough.This scenario explains the need for the differentiation for the companies.
Company B
Company C
What is a brand ?
Branding is an effort to give a unique identity to the company’s products and create emotional associations with consumers.It is a form of marketing.
A brand is a set of associations that are linked to a product range, a division, or company. These associations reside in the memory of customers.These associations help customers understand
what the brand or company is, why it is potentially relevant to them,how it is different or similar to other products made by the company,and how it is similar or different from competitor’s
products.
Evaluating the Mayo ClinicEvaluating the Mayo Clinic 600k + in- and out-patients/yr600k + in- and out-patients/yr Founded in 1800 by Dr William Woral Mayo & Founded in 1800 by Dr William Woral Mayo &
two sons.two sons. Pioneered “group practice” = Two heads are Pioneered “group practice” = Two heads are
better than one better than one Two “extension” facilities in 1980s Two “extension” facilities in 1980s
(Scottsdale,Jacksonville) (Scottsdale,Jacksonville) Mayo Graduate School of Medicine – one of Mayo Graduate School of Medicine – one of
largest graduate education centerslargest graduate education centers
Brand Value Chain & TestingBrand Value Chain & Testing
Evaluating the Mayo ClinicEvaluating the Mayo ClinicWorldwide leader in patient care, research Worldwide leader in patient care, research
and educationand educationRenowned for world class specialty careRenowned for world class specialty careEarned a reputation as world class specialty Earned a reputation as world class specialty
carecareMost medical staff participate in researchMost medical staff participate in research1950 Nobel Prize winners, Drs Kendall and 1950 Nobel Prize winners, Drs Kendall and
Hench discovered CortisoneHench discovered Cortisone
Brand Value Chain & TestingBrand Value Chain & Testing
Use The Brand Value Chain to determine Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Measurement Tactics and Resulting Marketing StrategiesStrategies
Value Stages
Marketing Program Investment
Customer Mindset
Market Performance
Shareholder Value
-Product-Communication-Trade-Employee-Other
-Awareness-Associations-Attitudes-Attachment-Activity
-Price Premiums
-Price Elasticities
-Market Share
-Expansion Success
-Cost Structures
-Profitability
-Stock Price
--Market Capitalization
Brand Value Chain & TestingBrand Value Chain & Testing
Evaluating the Mayo Clinic ‘96 Brand Evaluating the Mayo Clinic ‘96 Brand Equity StudyEquity StudyAwareness Awareness 84.3%, 90+% among 45+84.3%, 90+% among 45+Specialty rankingSpecialty ranking Top ranked at 15.4% Top ranked at 15.4%
(next at 5.3%) “..go anywhere in US for (next at 5.3%) “..go anywhere in US for serious condition which required highly serious condition which required highly specialized care..” specialized care..”
Strongest Brand AssociationsStrongest Brand Associations 1) Scientific 1) Scientific Research, 2) Cancer Treatment, 3) Cardiac Research, 2) Cancer Treatment, 3) Cardiac CareCare
Brand Value Chain & TestingBrand Value Chain & Testing
Evaluating the Mayo Clinic ‘96 Brand Equity StudyEvaluating the Mayo Clinic ‘96 Brand Equity Study Associations (Thoughts & Feelings) Associations (Thoughts & Feelings)
IntegrityIntegrity (longevity, heritage, wisdom of staff, trust in (longevity, heritage, wisdom of staff, trust in institution), institution),
LeadershipLeadership (modernity, premium quality, international prestige) (modernity, premium quality, international prestige)ProfessionalismProfessionalism (staff held high standards, were intellectually (staff held high standards, were intellectually
sophisticated and efficient) sophisticated and efficient) Commitment to health & healingCommitment to health & healing (reputation for medical (reputation for medical
discoveries, preventative medicine, tangible results)discoveries, preventative medicine, tangible results) No Negative AssociationsNo Negative Associations
Brand Value Chain & TestingBrand Value Chain & Testing
Evaluating the Mayo Clinic ‘96 Brand Evaluating the Mayo Clinic ‘96 Brand Equity StudyEquity StudyProduct Perception ISSUEProduct Perception ISSUE
Outside Midwest perception of “only for Outside Midwest perception of “only for rich/famous”rich/famous”
Known for Tertiary Care (Not primary family Known for Tertiary Care (Not primary family care)care)
Thus, “not like me”Thus, “not like me”
Brand Value Chain & TestingBrand Value Chain & Testing
Use The Brand Value Chain to determine Use The Brand Value Chain to determine Measurement Tactics and Resulting Measurement Tactics and Resulting Marketing StrategiesMarketing Strategies
Value Stages
Marketing Program Investment
Customer Mindset
Market Performance
Shareholder Value
MultipliersProgramQuality
MarketplaceConditions
InvestorSentiment
-Clarity
-Relevance
-Distinctiveness
-Consistency
-Competitive reactions
-Channel Support
-Customer size & Profile
-Market Dynamics
-Growth Panel
-Risk Profile
-Brand Contributions
Brand Value Chain & TestingBrand Value Chain & Testing
Use The Brand Value Chain to determine Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Measurement Tactics and Resulting Marketing StrategiesStrategies
Value Stages
Marketing Program Investment
Customer Mindset
Market Performance
Shareholder Value
-Product-Communication-Trade-Employee-Other
-Awareness-Associations-Attitudes-Attachment-Activity
-Price Premiums
-Price Elasticities
-Market Share
-Expansion Success
-Cost Structures
-Profitability
-Stock Price
--Market Capitalization
Brand Value Chain & TestingBrand Value Chain & Testing
Evaluating the Mayo Clinic ‘96 Brand Evaluating the Mayo Clinic ‘96 Brand Equity StudyEquity StudyCommunicationCommunication
Word of Mouth is influential in selecting Word of Mouth is influential in selecting specialty carespecialty care
1/3 know at least one Mayo patient1/3 know at least one Mayo patient
Brand Value Chain & TestingBrand Value Chain & Testing
Evaluating the Mayo Clinic ‘96 Brand Equity Study Evaluating the Mayo Clinic ‘96 Brand Equity Study CONCLUSIONS CONCLUSIONS Mayo’s Brand Equity is Powerful and PreciousMayo’s Brand Equity is Powerful and Precious As perceived by patients and consumers, Mayo’s As perceived by patients and consumers, Mayo’s
Essence:Essence:ExcellenceExcellence The best medical, personal and technical expertise The best medical, personal and technical expertise
in patient care and educationin patient care and educationCareCare Compassionate patient care and education resulting in Compassionate patient care and education resulting in
physical, mental and emotional well-beingphysical, mental and emotional well-beingCooperationCooperation Care and education in cooperative and inclusive Care and education in cooperative and inclusive
relationships among colleagues and with the patient, the relationships among colleagues and with the patient, the patient, the patient’s family and consumerspatient, the patient’s family and consumers
Enlightenment (Wisdom)Enlightenment (Wisdom) Commitment to pioneering Commitment to pioneering knowledge, insight, and truth through research and educationknowledge, insight, and truth through research and education
Brand Value Chain & TestingBrand Value Chain & Testing
Evaluating the Mayo Clinic ‘96 Brand Evaluating the Mayo Clinic ‘96 Brand Equity Study CONCLUSIONSEquity Study CONCLUSIONSMayo’s Brand Equity is Powerful and Mayo’s Brand Equity is Powerful and
PreciousPrecious““By living out these standards fully and By living out these standards fully and
consistently, the Mayo clinic had consistently, the Mayo clinic had engendered in patients and consumers engendered in patients and consumers a sense of confidence, safety, hope and a sense of confidence, safety, hope and serenity”serenity”
Brand Value Chain & TestingBrand Value Chain & Testing
Strategies
Tactics
Actions
Brand Development Brand Development
Consumer Driven Marketing Consumer Driven Marketing CycleCycle
•Brand saturation
•High Cost
Map the Marketspace
Select Most Valuable Customers
Choose a Winning Positioning
Create the Tactical PlanBuild
Operational Capabilities
Define Performance Measures
Execute the Tactical Plan
Assess Performance
Succeed And Improve
Mark Kerback, Kerback & Company
Evaluating the Mayo Clinic ‘96 Brand Equity Evaluating the Mayo Clinic ‘96 Brand Equity Study CONCLUSIONSStudy CONCLUSIONS A Satisfied national patient base is VITAL to A Satisfied national patient base is VITAL to
maintaining preferencemaintaining preference Vital to developing guidelines that protected the brandVital to developing guidelines that protected the brand 1999 created “Office of Brand Management”1999 created “Office of Brand Management”
Responsible for the protection & enhancement of the Mayo Responsible for the protection & enhancement of the Mayo Clinic brand (+ monitoring)Clinic brand (+ monitoring)
Developing Brand Management Guidelines & a Positioning Developing Brand Management Guidelines & a Positioning statementstatement
Implementing a Branding System (include education)Implementing a Branding System (include education)Build awareness of Brand Management within the organizationBuild awareness of Brand Management within the organizationResearch extension opportunities & risksResearch extension opportunities & risks
Brand Value Chain & TestingBrand Value Chain & Testing
Evaluating the Mayo Clinic ‘96 Brand Evaluating the Mayo Clinic ‘96 Brand Equity Study CONCLUSIONSEquity Study CONCLUSIONSExample of Brand Management Guidelines:Example of Brand Management Guidelines:
Each new/existing Mayo Clinic branded product, Each new/existing Mayo Clinic branded product, service or business relationship meets 4 criteria:service or business relationship meets 4 criteria:
Using name must be owned by Mayo or under full controlUsing name must be owned by Mayo or under full controlUse to solely assure success of service/product not Use to solely assure success of service/product not
appropriateappropriateNot to be used in a manner that trivalizes the Not to be used in a manner that trivalizes the
name/institutionname/institutionNot shared or soldNot shared or sold
Brand Value Chain & TestingBrand Value Chain & Testing
Get to the Consumer Insight/Core Get to the Consumer Insight/Core Value by Value by Laddering up to itLaddering up to itKeep asking “WHY”, “WHY”, “WHY”Keep asking “WHY”, “WHY”, “WHY”
Is Mayo Resonating with Consumers Is Mayo Resonating with Consumers Central Beliefs/Core Values?Central Beliefs/Core Values?
What Consumer Insight might they What Consumer Insight might they center their equity on?center their equity on?
Brand Value Chain & TestingBrand Value Chain & Testing
New Brand Development Project (due WK10)New Brand Development Project (due WK10) Work in Four Groups of 2 and select from product categories Work in Four Groups of 2 and select from product categories
providedprovided Develop a new brand marketing plan in an existing category Develop a new brand marketing plan in an existing category
(Use framework attached)(Use framework attached) Develop the key insight, concept & positioningDevelop the key insight, concept & positioning Ensure the following are ALSO included: Ensure the following are ALSO included:
Your VISIONYour VISION Launch Rationale Launch Rationale Business analysis (Competitive and market analysis, SWOT etc) Business analysis (Competitive and market analysis, SWOT etc) Target audience, Key Competitive insights and Core Values (use Target audience, Key Competitive insights and Core Values (use
CBBE Pyramid)CBBE Pyramid) Projected share and financials (supported, P&L examples to be Projected share and financials (supported, P&L examples to be
provided)provided) Proposed Marketing Objectives, Strategies and Tactics Proposed Marketing Objectives, Strategies and Tactics
Strategic Brand ManagementStrategic Brand Management
RECOMMENDED TIMETABLERECOMMENDED TIMETABLE Select groups and categories Oct18th (data up Oct 20th); assign group Select groups and categories Oct18th (data up Oct 20th); assign group
tasks; conduct research searchestasks; conduct research searches Oct 25Oct 25thth: Out line marketing plan to share with the group; : Out line marketing plan to share with the group; Nov 1st: Having reviewed available data; hypothesize financials, Nov 1st: Having reviewed available data; hypothesize financials,
consumer insights, positioning and concepts (can turn in roughs to consumer insights, positioning and concepts (can turn in roughs to prof for feedback)prof for feedback)
Nov 8th: Draft marketing plan deck and begin conversion to power Nov 8th: Draft marketing plan deck and begin conversion to power point presentationpoint presentation
Nov 15th: Turn in completed plan and conduct presentations.Nov 15th: Turn in completed plan and conduct presentations.FINISHED PRODUCT:FINISHED PRODUCT: One 10-15 Minute presentation (docked a grade if over 15 minutes!!)One 10-15 Minute presentation (docked a grade if over 15 minutes!!) One marketing plan document (main text to be NO MORE than 5 One marketing plan document (main text to be NO MORE than 5
pages.. Appendix with charts, graphs, data and research encouraged)pages.. Appendix with charts, graphs, data and research encouraged) Visuals encouraged. Visuals encouraged.
Strategic Brand ManagementStrategic Brand Management
Your Marketing PlanYour Marketing Plan
PurposePurpose Define your core objectives, strategies and Define your core objectives, strategies and
tactics in concise summarytactics in concise summary Management selling tool for brand investmentManagement selling tool for brand investment Document and sell or acknowledge resultsDocument and sell or acknowledge results Provide solid, focused direction to corporation Provide solid, focused direction to corporation
and brand supportand brand support Define Brand evaluation objectivesDefine Brand evaluation objectives Live Working DocumentLive Working Document
Measuring Brand EquityMeasuring Brand Equity
Objective:Objective:To guarantee assets/liabilities are To guarantee assets/liabilities are
nurtured and managed (loyalty, nurtured and managed (loyalty, awareness, perceived quality, awareness, perceived quality, propriety brand assets)propriety brand assets)
Develop Focused Master PlanDevelop Focused Master PlanCreate Long term Strategic Create Long term Strategic
OrientationOrientation
Brand Marketing ProcessBrand Marketing Process
ANNUAL STRATEGIESHow will the objectives be achieved?
Ann
ual P
lan
& E
xecu
tion
Three Year and ANNUAL ObjectivesWhat do I want to Accomplish
Objectives Should be S.M.A.R.T
Establish Positioning
Concept
Marketing Plan Execution
Functional Objectives &Strategies
And Tactical Plan
Physical ProductPackage
Pricing
Advertising
Media
PublicRelations
Consumer &Retailer Promo
Market Research
Ana
lysi
s &
Lon
g T
erm
S
trat
egy
Measure Brand Equity
BusinessAnalysis
Market & Competitive
Trends
Consumer Insights
SWOTs
MarketingMix
Financial Health
Strategic Implications & Strategy DevelopmentCore Competencies, External Opportunities
Brand Vision
Brand Strategy
Strategic Role
Brand Marketing ProcessBrand Marketing ProcessA
naly
sis
& L
ong
Ter
m S
trat
egy
Measure Brand Equity
BusinessAnalysis
Market & Competitive
Trends
Consumer Insights
SWOTs
MarketingMix
Financial Health
Strategic Implications & Strategy DevelopmentCore Competencies, External Opportunities
Brand Vision
Brand Strategy
Strategic Role
Establish Positioning
ConceptAna
lysi
s &
Lon
g T
erm
Str
ateg
y
ANNUAL STRATEGIESHow will the objectives be achieved?
Brand Marketing ProcessBrand Marketing ProcessA
nnua
l Pla
n &
Exe
cuti
on
Three Year and ANNUAL ObjectivesWhat do I want to Accomplish
Objectives Should be S.M.A.R.T
Establish Positioning
Concept
Marketing Plan Execution
Functional Objectives &Strategies
And Tactical Plan
Physical ProductPackage
Pricing
Advertising
Media
PublicRelations
Consumer &Retailer Promo
Market Research
Brand Marketing ProcessBrand Marketing Process
ANNUAL STRATEGIESHow will the objectives be achieved?
Ann
ual P
lan
& E
xecu
tion
Three Year and ANNUAL ObjectivesWhat do I want to Accomplish
Objectives Should be S.M.A.R.T
Establish Positioning
Concept
Marketing Plan Execution
Functional Objectives &Strategies
And Tactical Plan
Physical ProductPackage
Pricing
Advertising
Media
PublicRelations
Consumer &Retailer Promo
Market Research
Ana
lysi
s &
Lon
g T
erm
S
trat
egy
Measure Brand Equity
BusinessAnalysis
Market & Competitive
Trends
Consumer Insights
SWOTs
MarketingMix
Financial Health
Strategic Implications & Strategy DevelopmentCore Competencies, External Opportunities
Brand Vision
Brand Strategy
Strategic Role
Measuring Brand EquityMeasuring Brand Equity
Market Trends ChecklistMarket Trends Checklist
Volume & Share•Industry definition & served market•Category Size & growth rates•Category Segmentation, trends, importance to category•Share of market by brand & by segment
Market Conditions•Household Pentration•Seasonality•Regionality (CDI/BDI)
Retail Conditions•Channels of Distribution•Product Sourcing/availability•Importance of the category to the retailer•Retailer focus on private label•Retailer influence over category marketing activity
Consumer Conditions•Substitute products
•Changes in tastes/attitudes/needs
Government
Conditions
•Regulations & Reqs.•Legislative issues
Assessing Competitive Trends Assessing Competitive Trends
Measuring Brand EquityMeasuring Brand Equity
Competitor Identification
• Key direct competitors• Competitive Scope:
• Regional/National/Global
Competitive Strategy• Overall mission/priorities• Target Audience• Brand Turf/Positioning• Class of Trade (COT) importance
Competitor Focus•Importance in portfolio•Level of product activity•Level of marketing focus•Financial resources
Competitive Financials•P&L analysis
•Cost Structure•Spending
•Profitability
Advantage
Brand Value Chain & TestingBrand Value Chain & Testing
Use The Brand Value Chain to determine Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Measurement Tactics and Resulting Marketing StrategiesStrategies
Value Stages
Shareholder Value
Marketing Program Investment
Customer Mindset
Market Performance
-Product-Communication-Trade-Employee-Other
-Awareness-Associations-Attitudes-Attachment-Activity
-Price Premiums
-Price Elasticities
-Market Share
-Expansion Success
-Cost Structures
-Profitability
-Stock Price
-Market Capitalization
Use The Brand Value Chain to determine Use The Brand Value Chain to determine Measurement Tactics and Resulting Measurement Tactics and Resulting Marketing StrategiesMarketing Strategies
Value Stages
Marketing Program Investment
Customer Mindset
Market Performance
Shareholder Value
MultipliersProgramQuality
MarketplaceConditions
InvestorSentiment
-Clarity
-Relevance
-Distinctiveness
-Consistency
-Competitive reactions
-Channel Support
-Customer size & Profile
-Market Dynamics
-Growth Panel
-Risk Profile
-Brand Contributions
Brand Value Chain & TestingBrand Value Chain & Testing
Measuring Brand EquityMeasuring Brand Equity
SWOTSWOT Purpose: to guide thinking and help distill the Purpose: to guide thinking and help distill the
key issues and opportunities facing the Brand key issues and opportunities facing the Brand AND the categoryAND the category
Can be done in competitive analysisCan be done in competitive analysisSTRENGTH
Inherent source of competitive advantage within the Brand (of genuine relevance to the consumer)
WEAKNESS
Inherent cause of competitive disadvantage within the Brand (of genuine importance to consumer)
INTERNAL to the brand
Caused by the inherent nature of the Brand or our management of it
Measuring Brand EquityMeasuring Brand Equity
SWOTSWOT Purpose: to guide thinking and help distill the Purpose: to guide thinking and help distill the
key issues and opportunities facing the Brand key issues and opportunities facing the Brand AND the categoryAND the category
Can be done in competitive analysisCan be done in competitive analysis
OPPORTUNITY
Unsatisfied or poorly satisfied need in the marketplace which our company can perform profitability
THREATPotential problem from external source which could undermine our Brand’s competitive position if not addressed.
EXTERNAL to the brand
Markets, competitors, retail, social trends etc
Consumer-Based Brand Equity Consumer-Based Brand Equity PyramidPyramid
Brand Salience
Consumer-BrandResonance
ConsumerJudgments
ConsumerFeelings
BrandPerformance
BrandImagery
4 Intense, Active Loyalty
1 Deep Broad Brand Awareness
2 Points of Difference
3 Positive Accessible Reactions
Con
sum
er A
ccep
tanc
e C
y cle
THIS is Where the
InsightLives
Consumer-Based Brand Equity Consumer-Based Brand Equity PyramidPyramid
Salience
Resonance
JudgmentsFeelings
Performance Imagery
Loyalty
Attachment
Community
Engagement
Quality
Credibility
Consideration
Superiority
Warmth, Fun
Excitement,
Security, Social
Approval,
Self-Respect
4 Brand Relationships (WHAT About You AND ME?)
1 Brand Identity (WHO Are You?)
2 Brand Meaning (WHAT Are You?)
3 Brand Response (WHAT About You?)
User Profiles
Purchase and Usage
Situations
Personality & Values
History, Heritage, & Experiences
Brand Characteristics
& Secondary Features
Product Reliability,
Durability & Serviceability
Service Effectiveness, Efficiency,
& Empathy
Style and Design; Price
Category Identification
Needs Satisfied
Insight to PositioningInsight to Positioning
State the thought you wish State the thought you wish to implant in your target’s to implant in your target’s mind:mind:
TO (core target audience), TO (core target audience), (Brand Name), (Brand Name),
IS THE (frame of IS THE (frame of reference)reference)
THAT (owned benefit)THAT (owned benefit)BECAUSE (support or BECAUSE (support or
reason to believe)reason to believe)
Power Positioning LINKS to
Consumer Insight
Introducing (Brand Name)Introducing (Brand Name)Succinct insight driven benefits (benefit Succinct insight driven benefits (benefit
statement)statement)
Consumer Insight statement (AHA Consumer Insight statement (AHA not fact).not fact).
Introducing New Brand. What it does Introducing New Brand. What it does (relevant core benefit to consumer). (relevant core benefit to consumer). Reason to believe (how/why it does Reason to believe (how/why it does what it does).what it does).
Reprise of positioning in closing tag.Reprise of positioning in closing tag.
Your Marketing PlanYour Marketing Plan
Fundamental Statement of PurposeFundamental Statement of PurposeWhat do I want to do (grow X% to $$)What do I want to do (grow X% to $$)Objectives must be SMARTObjectives must be SMART
SpecificSpecificMeasurableMeasurableAppropriateAppropriateRealisticRealisticTimeboundTimebound
Long Term and Short termLong Term and Short term
Brand Development Brand Development
Consumer Driven Marketing CycleConsumer Driven Marketing Cycle
•Brand saturation
•High Cost
Strategies: Fact Based choices on who, how and why
Consumer Insight: Singularly focused need, desire or want
Tactics: Activities/capabilities –what, where and when
Actions: Execution, feedback, assessment, and improvement
Strategies
Tactics
Actions
Mark Kerback, Kerback & Company
YOUR MARKETING PLANYOUR MARKETING PLAN
What is your Big Inspiring Vision?What is your Big Inspiring Vision? How will your consumer insight translate How will your consumer insight translate
across ALL elements of your plan?across ALL elements of your plan? PositioningPositioning Brand EssenceBrand Essence Strategies and TacticsStrategies and Tactics
WHO is your target REALLY (pscyh, demo)WHO is your target REALLY (pscyh, demo) In your SWOT: What is going on In your SWOT: What is going on
competitively and in the Market Place?…competitively and in the Market Place?… WHY should I invest in your launch????????WHY should I invest in your launch????????