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Chair for Marketing and Retailing Trier University Prof. Dr. Prof. h.c. B. Swoboda 1st exercise Master study WS 2015/2016 Specialization: Handel und Internationales Marketing-Management Module: Retail Management und International Branding INTERNATIONAL BRAND MANAGEMENT Downloads: www.muh.uni-trier.de Benutzer: muh Passwort: swoboda

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Chair for

Marketing and Retailing Trier University Prof. Dr. Prof. h.c. B. Swoboda

1st exercise Master study WS 2015/2016

Specialization: Handel und Internationales Marketing-Management

Module: Retail Management und International Branding

INTERNATIONAL BRAND

MANAGEMENT

Downloads: www.muh.uni-trier.de

Benutzer: muh

Passwort: swoboda

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda Consumer goods distribution as basis

Consumer

Customer

retention =

Brand retention Retailing

Customer retention

= Store retention

Customer retention

= Commercial partner

retention

Customer

retention =

Integrative

retention

Manufacturer

Marketing oriented processes Supply chain processes

Production

of manu-

facturers

Stock

of manu-

facturers

Stock

of

commerce

Retailer Consumer

Value chain according to the push-principal

Production

of manu-

facturers

Stock

of manu-

facturers

Stock

of

commerce

Retail Consumer

Valuechain according to the pull-principal

Supplier Consumer Manu-

facturer Commerce

Connection of value chains

Source: Zentes/Swoboda/Morschett 2010.

Connection between research (Top-Journals) and practice

Slide 2

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Top international retailer

and manufacturer worldwide

Source: *ranking for 2014; OC&C-Partner 2015.

43

45

46

48

48

50

52

55

56

64

72

77

87

87

87

87

93

425

Leclerc (FR)

Wesfarmers (AUS)

Rewe (DE)

Seven & I (JPN)

Woolworths (AUS)

Aeon (JPN)

Edeka (DE)

Auchan (FR)

Casino (FR)

Target (USA)

Aldi (DE)

Metro (DE)

Kroger (USA)

Tesco (UK)

Schwarz Group (DE)

Carrefour (FR)

Costco (USA)

Wal-Mart (USA) 425

Source: *ranking for 2015; Deloitte 2015;

Manufacturer Country Sales

bn $

Return of

Sales (%)

1 Nestlé AG CH 100.205 20.6 2 P & G USA 83.062 18.7

3 PepsiCo USA 66.683 14.4

4 Unilever UK/NL 66.135 16.6 5 JBS BR 49.102 5.6 6 AB-Inbev BE 47.063 32.1 7 Coca-Cola USA 45.998 20.0 8 Tyson Foods USA 37.580 3.7 9 Mondelez USA 34.244 9.5 10 A. D. Midland USA 31.546 4.2

11 L’Oréal FR 29.945 26.8

12 Philip Morris USA 29.767 39.7

13 Group Danone FR 28.100 10.0 14 Heineken Holding NL 25.593 15.2 15 B. A. Tobacco UK 23.019 37.7 16 Japan Tobacco JPN 22.057 27.0 17 WH Group CN 21.244 8.1 18 Kraft Foods USA 18.205 10.4 19 General Mills USA 17.910 17.0 20 Altria Group USA 17.814 47.8 21 Kirin Breweries JPN 17.771 5.2 22 Conagra USA 17.703 5.6 23 Colgate Palmolive USA 17.277 20.6 24 Diageo UK 16.901 29.4 25 SABMiller UK 16.704 32.7

Retailer Sales (bn. Euro)

1

2

3

4

5

6

7

8

10

13

14

16

17

18

19

21

22

23

No.

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda Branding as a mutual basis

Dominance of branded products

Consumer

Rewe

Edeka

Globus

Obi Tesco

Douglas dm

Aldi

Lidl

Media-Markt

Coop

Dominance of retail brands

Consumer

Kraft

Black&

Decker

Coca-Cola

Milka

Nestlé

Maggi

Persil Pfanni

Nivea

Marlboro

Knorr Sony

Lancôme

Slide 4

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Learning objectives of lecture

You should be aware of the basic explanatory approaches and models of brand management (national/international) and you should

internalize the structure of international scientific studies.

1. Overview of the basic understanding of brand management (national/interna-

tional) as well as of its levels (product vs. corporate in industry and retailing).

2. Understanding the structure of scientific studies: Abstract, introduction, literature

review, conceptualization/hypotheses/framework, empirical study (sample design,

measurement, method, results), implications (research, practice), limitations.

3. Insights into qualitative/quantitative research studies, including own calculations.

- Journal of Marketing (US A+ Journal) - Marketing Science (US A+ Journal) - International Journal of Research in Marketing (EU A Journal)

- Marketing Letters (US B Journal) - Journal of International Marketing (US B Journal) - Marketing ZfP (Deutsches C Journal)

- AMA Winter/Summer Educators’ Conference - Informs Marketing Science Conference - ACR – Association for Consumer Research North American Conference

- AMS Academy of Marketing Science Annual Conference

International Marketingjournals and -conferences

Slide 5

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

1) Lecture by Ms. Weindel/Ms. Puchert/Mr. Hirschmann/Mr. Seibel; 2) Mr. Morbe.

Date

1 03.11.2015 Basics of brand management

2 10.11.2015 International brand management

3 17.11.2015 Brand impact models, moderators and mediators

41) 24.11.2015 Basic structure of international studies

52) 01.12.2015 Effect of brand equity: Quantitative research techniques I

62) 08.12.2015 Effect of brand equity: Quantitative research techniques II

71) 15.12.2015 Effect of brand equity: Quantitative research techniques III

81) 16.12.2015 Effect of brand equity: Quantitative research techniques IV

91) 05.01.2016 Consultation hour (homework; meeting in lecture room)

10 12.01.2016 Guest lecture: Mr. Stippler, Global Brand Tracking, Bayer AG

111) 19.01.2016 Presentation of students and feedback

121) 26.01.2016 Branding studies

131) 02.02.2016 Branding studies

141) 09.02.2016 Branding studies

151) 16.02.2015 Exam meeting

Organization

Examination: Written after the end of the course; reaching max. 12

additional points possible by homework Slide 6

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Literature

Required literature (relevant in some excercises)

Ailawadi, K. L. & Keller, K. L. (2004), “Understanding Retail Branding: Conceptual

Insights and Research priorities”, Journal of Retailing, 80: 331-342.

Yoo, B. & Donthu, N. (2001), “Developing and Validating a Multidimensional

Consumer-Based Brand Equity Scale”, Journal of Business Research, 52 (1): 1-14.

Walsh, G. & Beatty, S. E. (2007), “Customer-based corporate reputation of a service

firm: scale development and validation”, Journal of the Academy of Marketing

Science, 35 (1): 127-43.

Slide 7

Chair for

Marketing and Retailing Trier University Prof. Dr. Prof. h.c. B. Swoboda

Foundations of Brand Management

1.1 Brands & Brand Management

1.2 Customer-based Brand Equity

1.3 Corporate, Product, Service or Retail Branding

1

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

In Detail…

What is a brand?

Brands vs. products

Why do brands matter?

Brands‘ values for consumers and manufacturer

Can everything be branded?

Forms of brand names

Brand strength

Slide 9

Objectives

Defining “brand”

Understanding the functions and impor-

tance of the brand from the perspective

of both consumers and firms

Understanding of what can and cannot

be branded

Identifying strong brands

Understanding branding challenges and

opportunities

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

„Brand as mental image in the

mind of consumers“

„intellectual property right“

Different perspectives of the term

„brand“

„branded product“

Slide 10

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

What is a brand?

American Marketing Association (AMA):

A brand is a “Name, term, design, symbol, or any other feature that

identifies one seller's good or service as distinct from those of other

sellers.”

Marketing manager:

“something that has actually created a certain amount of awareness,

reputation, prominence, and so on in the marketplace. “

Variety of brand name strategies

Slide 11

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Brands versus products

A product is anything we can offer to a market for attention, acquisition, use,

or consumption that might satisfy a need or want.

Level MP4s Player

Core Benefit Musical entertainment on the move

Generic Product Ability to play music downloaded from the web

Expected Product Consumer should expect a solid-state device with no

moving parts and 64 to 128 megabytes of memory

Augmented Product Optional features: colour LCD screen, audio equalizer,

ability to store files other than digital-audio files

Potential Product Voice-controlled programming, „infinite life“ batteries

Slide 12

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

A brand…

… is therefore more than a product, as it can have dimensions that differen-

tiate it in some way from other products designed to satisfy the same need.

Slide 13

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

0%

10%

20%

30%

40%

50%

60%

70%

I prefer brand A I prefer brand B Brand A is as wellas brand B

51%

44%

5%

Blindtest

0%

10%

20%

30%

40%

50%

60%

70%

I prefer brand A I prefer brand B Brand A is as wellas brand B

23%

65%

12%

Test with presentation of the brand

Effects of brands on consumer

preferences

Slide 14 Source: DeChernatony, L.; McDonald, M. (2007): Creating powerful brands, 4. Aufl., Oxford u.a., S. 14 f.

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Benefits (value) of the brand

Benefits of the brand

from consumer perspective Guidance (identification feature)

Trust feature

Prestige feature

Identification feature

Relief feature

Quality assurance feature

Benefits of the brand

from supplier‘s perspective Formation of preferences

Differentiation against competition

Customer retention and loyalty

Segment-specific marketing

Plattform for new products

Differentiated price policy

Increase in company value

Slide 15

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Relevant market and communication

conditions for brand management

Inflation of products and brands,

brand erosion and brand trust,

quality pat and brand equality

Inflation of communication activities

for brand building and

strengthening vs. information

overload and volatile information

behavior

Experience orientation of

consumers vs. smart shoppers/

hybrid consumers

Retailing power and emancipation

of retailing

Source: Esch 2005. Slide 16

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Marketing advantages of strong

brands

Improved perceptions of product performance

Greater loyalty

Less vulnerability to competitive marketing actions

Less vulnerability to marketing crises

Larger margins

More inelastic consumer response to price increases

More elastic consumer responses to price decreases

Greater trade corporation and support

Increased marketing communication effectiveness

Possible licensing opportunities

Additional brand extension opportunities

Slide 17

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Best global brands 2015

Slide 18

Rank Previous

rank

Brand COO Sector Brand

value ($m)

Change in

brand value

1 1 USA Electronics 170,276 43%

2 2 USA Internet Services 120,314 12%

3 3 USA Beverages 78,423 -4%

4 4 USA Computer Services 67,670 11%

5 5 USA Electronics 65,095 - 10%

6 6 Japan Automobiles 49,048 16%

7 8 Südkorea Electronics 45,297 0%

8 10 USA Diversified 42,267 -7%

9 7 USA Food 39,809 -6%

10 11 USA Online 37,948 29%

Source: Interbrand 2015: Best Global Brands 2014. Available: http://bestglobalbrands.com/2015/ranking/

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Value of the most expensive brands

in the world in Mill. USD

Source: Interbrand 2015. Slide 19

170,276

120,314

78,423

67,670

65,095

49,048

45,297

42,267

39,809

37,948

37,212

36,711

36,514

35,415

29,854

27,283

23,070

23,056

22,975

22,250

Apple

Google

Coca-Cola

Microsoft

IBM

Toyota

Samsung

GE

Mc Donalds

Amazon

BMW

Mercedes-Benz

Disney

Intel

Cisco

Oracle

Nike

hp

Honda

Louis Vuitton

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Can everything be branded?

Physical goods

Services

Retailers and distributors

Online products and services

People and organizations

Sports, arts, and entertainment

Geographic locations

Ideas and causes

Slide 20

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Forms of brand names

Person-related (Estee Lauder, Porsche, Orville Redenbach)

Place-related (Sante Fe Cologne, Chevrolet Tahoe SUV, British Airways)

Animal-related (Mustang automobiles, Dove soap, Greyhound buses)

Product-related (Lean Cuisine, JustJuice)

Attribute-related (DieHard Autobatterien, Mop & Glo Floor Cleaner,

Beautyrest Mattrasses)

Others (Apple, Shell, Milk)

Slide 21

Chair for

Marketing and Retailing Trier University Prof. Dr. Prof. h.c. B. Swoboda

Foundations of Brand Management

1.1 Brands & Brand Management

1.2 Customer-based Brand Equity

1.3 Corporate, Product, Service or Retail Branding

1

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

In Detail…

Inside-Outside and Outside-Inside-View

The Brand Equity Concept

Customer-based Brand Equity (CBBE)

Brand awareness and brand image

Brand Building

CBBE Pyramid

Slide 23

Objectives

Introducing the concept of CBBE

Understanding the source of

CBBE

Highlighting outcomes and

benefits of CBBE

Understanding the CBBE model

and implications of the model

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda Branding perspectives

Level of

Action

Internal View

Summary of Internal- and External View

Determine of the „Desired Value“

Derivation and Implementation of the Positioning

Permanent Review of the Status

Level of

Impact

External View

Strategy as Basis

Competitive Strategy: Strategy at business division level, with the aim of

creating or maintaining of competitive advantages (Differentiation vs. Cost

Leadership)

Positioning: Strategic and active arrangements of the position in the

relevant markets (e.g., imageprofiling, corporate culture/image, corporate

design etc.) Slide 24

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Brand identity and image

Slide 25 Source: Meffert/Burmann/Kirchgeorg 2015.

Self-image of the

internal target

group

External image of

the external

target groups

Brand identity Brand image

Brand value

proposition

Brand

extension

Brand

behavior

Brand

experience

Brand-buyer-

relationship

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

The awareness within the target

group is crucial

General

Awareness

37 %

Awareness within

target group

> 90 %

Slide 26

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Price

Variety

Assortment

quality

Service

Trouble-

shooting

Lifestyle/

Value

H&M

Service

Store design

Communication

Loyalty programs

Distribution

Assortment Price

H&M - Benchmark

Slide 27

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

The brand-equity concept

Stresses the importance of brand role in marketing strategies

Brand equity is defined in terms of the marketing effects uniquely

attributable to the brand

Branding is all about endowing products and services with the power of

brand equity

Brand equity explains why different outcomes result from the marketing of

a branded product or service than if it were not branded

Slide 28

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Customer-based brand equity

“The differential effect that brand knowledge has on consumer response to

the marketing of that brand.” In other words: The power of a brand lies in

what resides in the minds of the customers.

Slide 29 Source: Keller, K. L. 1993. Conceptualizing, measuring, and managing customer-based brand equity.

Journal of Marketing, 57(1): 1-22.

Coors

Pabst

Colt 45

Guinness

Miller Lite

Budweiser

Pabst

Coors

Miller Lite

Budweiser Colt 45

Guinness

A. Taste perceptions of six beer brands when

the drinker knows what he is drinking

B. Taste perceptions of six beer brands when

the drinker does not knows what he is drinking

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Brand equity as a bridge

Reflection of past investments

in the marketing of a brand

Direction for future marketing

actions or programs

Slide 30

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

iPhone

???

Apple Associations

Slide 31

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Source: Keller, Kevin: Conceptualizing, Measuring and Managing Customer-Based Brand Equity, in:

Journal of Marketing, Vol. 57, 1993, January, S. 1-22, S. 7.

CBBE occurs when the consumer has a high level of awareness and familiarity with the brand and holds some strong, favorable, and unique brand associations in memory.

Slide 32

Brand value /

knowledge

Brand

awareness

Brand

image

Brand recall

Brand recognition

Types of brand associations

Advantageousness of brand associations

Strength of brand associations

Uniqueness of brand associations

Simple customer-based brand equity

model

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Source: Esch et al. 2005.

brand is unknown

passive brand recall

(based recognition)

active brand recall

(memory)

dominant brand

(exclusive

brand recall)

intensive active brand recall

(top of mind)

- Brand awareness pyramide -

Slide 33

Brand awareness

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Brand awareness advantages

Slide 34 Source: Keller 1993.

Learning advantages

Register the brand in the minds of consumers

Consideration advantages

Likelihood that the brand will be a member of the consideration set

Choice advantages

Affect choices among brands in the consideration set

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Brand image

Types of brand associations

Emotional or cognitive

Favorability of brand associations

Associations should lead to brand preferences

Strength of brand associations

Is made up of the quantity of processing and the

quality of information processing

Involvement of consumers and consistency of

the stimulus are key factors

Uniqueness of brand associations

Key differentiation criteria should be associated

with the brand

Slide 35

Chair for

Marketing and Retailing Trier University Prof. Dr. Prof. h.c. B. Swoboda

Foundations of Brand Management

1.1 Brands & Brand Management

1.2 Customer-based Brand Equity

1.3 Corporate, Product, Service or Retail Branding

1

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

In Detail…

Corporate Brand vs. product brand

Corporate Branding: The Henkel example

Product Branding strategies

Corporate, sales line and format branding in Retailing

Slide 37

Objectives

Understanding the particularities of

Corporate and Product Branding

Understanding the particularities of

(levels of) Retail Branding

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Corporate branding

Slide 38

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Corporate

Brand

Management

Corporate

Value

External

Target Group

Internal

Target Group

Source: Swoboda, B.; Giersch, J. (2007): Internationales Corporate Brand Management – Das Beispiel Henkel,

Düsseldorf.

External and internal target group

Slide 39

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Defining Corporate Brand

Corporate brand could be described as the interface between self-portrayal

and external perception of the organization

Corporate

Brand

Corporate

Culture

Corporate

Identity

Corporate

Image

Corporate

Reputation

Self portrayal of the company External perception of the organization

Source: Balmer, J. M. T. 2001. Corporate identity, corporate branding and corporate marketing. European Journal of Marketing, 35(3/4):

248-91.; Giersch, J. (2007): Corporate Brand Management international tätiger Unternehmen, Dissertation, Trier, p. 44. Slide 40

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Hygiene/

Surface

Adhesives

Technologies Cosmetics/

Toiletries

Sales:

1,952 (15%)

Sales:

2,959 (23%)

Sales:

2,029 (16%)

Laundry &

Home Care

Corporate – Sales: 83 (1%) Total sales: 12,779

Quelle: Henkel Geschäftsbericht 2000.

Chemical

(Cognis)

Sales:

2,835 (22%)

Sales:

2,921 (23%)

Slide 41

Adhesives

Technologies

Sales:

8,256 (50%)

Corporate: Sales: 156 (1%)

Laundry &

Home Care

Sales:

4,556 (28%)

Cosmetics/

Toiletries

Sales:

3,542 (21%)

Total sales: 16,510

Henkel’s sales of business sectors in

2000 and 2015 (in million €)

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Henkel in 2001

Slide 42

Corporate Level

Country Level

UB Level

SBU Level

Brand Level

Internal Level

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Vision & Values of Henkel (2015)

Slide 43

Vision

A global leader in brands and technologies.

We put our

customers at the

center of what

we do.

We value,

challenge and

reward our

people.

We drive

excellent

sustainable

financial

performance.

We are

committed to

leadership in

sustainability.

We build our

future on our

family-business

foundation.

Values

Codes

Code of Conduct Code of Teamwork und

Leadership

Code of Corporate

Sustainability

Source: Henkel 2015; Swoboda, B. and M. Löwenberg (2012): The global sustainability initiative “Quality and Sustainability” and the concept of “Performance based on Sustainability”, Trier/Düsseldorf.

Slide 43

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Henkel after 2001

Slide 44

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Henkel – Internal instruments

Corporate Values:

We are customer driven.

We develop superior brands and

technologies.

We aspire to excellence in quality.

We strive for innovation.

We embrace change.

We are successful because of our people.

We are committed to shareholder value.

We are dedicated to sustainability and

corporate social responsibility.

We communicate openly and actively.

We preserve the tradition of an open family

company.

Corporate Song:

„We together“

Friendship Day

Slide 45

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Henkel – External instruments

Nachhaltigkeits-Ratings

Slide 46

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Corporate brand vs. product brand

Product Brand Corporate Brand

Management Middle management CEO

Brand responsibility Middle (brand) management All employees of the firm

Scope of the concept Marketing

(competitive strategy)

Across functions

(corporate strategy)

Marketing-Mix Marketing communication Corporate communication

Focused target group Customer Internal and external groups

Communicated values Target group specific Historic values

Slide 47

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

„House of Brands“

Company of brands

Corporate brand only present at highest level (as identifier);

single/family/umbrella brand strategies pursued

at product level

„Endorsed Strategy“

Combination

Simultaneous use of two brand components with varying degrees of

prioritization or dominance

„Branded House“

Company as brand

Corporate brand solely responsible for defining

the profile of the company; total corporate

brand integration

High Low

Integration of the corporate brand

Corporate vs. product brand 2/2

Source: Swoboda, B.; Giersch, J. (2007): Internationales Corporate Brand Management – Das Beispiel Henkel, Düsseldorf. Slide 48

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Märkte

Company

Market 1

Brand A

Market 2

Brand B

Management of every product as one brand

Basic branding strategies –

Individual branding strategy

Slide 49

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Märkte

Company

Market 1

Brand A

Brand B

Brand C

Parallel management in every product area of not less than two on the total

market justified brands

Slide 50

Basic branding strategies –

Multi-brand strategy

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Märkte

Company

Market 1 Market 2 Market 3

(Umbrella-)Brand

Management of every product of a company as one brand

Slide 51

Basic branding strategies –

Umbrella brand strategy

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Basic branding strategies –

Family branding strategy

Markets

Company

Brand family A Brand family B

Product A Product C Product B

Market 1 Market 2 Market 3

Management of several products as one brand, in some circumstances

parallel management of several brand family

Slide 52

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Advantages and Disadvantages of

the Basic Brand Strategies

Individual branding strategy

+ unique brand personality

+ no potential negative image transfer

+ less coordination needs

- high costs for brand launch

- without recourse to existing prominence

and acceptance of existing brands

- no synergy effects of media costs

Family branding strategy

+ address of new target groups by the use

of market expansion

+ reduction of flop risk

+ mutual support of brands

+ relative low costs of branding through

synergies

- possible negative spillover effects

- higher coordination efforts

- risk of substitution relationships

Multi-brand strategy

+ protection of the competitive position

by the use of „competitors in house“

+ better market exploitation

+ wide shelf space coverage

- cannibalization of the own brands

- suboptimal usage of financial and

personal resources

- risk of to much segmentation

Umbrella brand strategy

+ address of new target groups by the use

of market expansion

+ reduction of flop risk

+ faster acceptance in retailing and among

consumers

- possible negative spillover effects

- higher coordination efforts

- „deprofiling“ of the umbrella brand because

of insufficient brand competence Slide 53

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Specific branding strategies –

Transfer brand strategy (Self-Study)

Märkte

Company

Market 1 Market 2

Transfer of positive image components of an established brand on a

transfer product of a new product category

Slide 54

Transfer brand

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Markets

Specific branding strategies –

Co-Branding (Self-Study)

Company B Company A

Cooperative

Compound

Market 1

Brand A Brand B

New brand C

Joint appearance of independent brands in a cooperative compound

Slide 55

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Conceptualizing effects

Advertising Spending

Distribution Intensity

Price Fairness

Product Sophistication

Customer Orientation

Good Employer

Financially Strong Firm

Product Range Quality

Responsibility

Product Image

Corporate Image

Product Loyalty

Product-related Marketing Mix Corporate Associations

Slide 56

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Rank Country of Origin Brand Value (US-$ m)

1 CN 66,375

2 USA 62,292

3 USA 35,245

4 USA 27,705

5 Sweden 17,025

6 UK 14,171

7 USA 11,818

8 Germany 11,660

9 USA 11,214

10 USA 10,756

Top 10 most valuable global retail

brands 2015

Slide 57 Source: Kantar Retail: The Top 20 Most Valuable Global Retail Brands 2015, Available: http://www.millwardbrown.com/mb-global/brand-

strategy/brand-equity/brandz/top-global-brands/2015/brand-categories/retail.

Retail-Branding stands for the brand policy of a retailing company on the

level of retail outlets, whereby the brand is a strategic guideline for the

retail marketing (Morschett 2002, Swoboda/Hälsig 2007).

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Different branding strategies

Umbrella Brand

Strategic business units

Slide 58

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Also here different levels

Corporate brand level

Retail brand level

Product brand level

Private labels Manufacturer‘s brand

Slide 59

Manufacturer‘s brand Private labels

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Conceptualizing retail brand effects

Slide 60

Store Loyalty

Store Layout

Assortment

Location

Communication

Price

Service

Market Characteristics Store Characteristics

Consumer Characteristics

Retail Brand Image

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Exercise for the next lecture

Read the literature and answer the three questions:

What are the research gaps/calls, questions and key results of the papers?

Which theory/conceptualization is used and how they measure constructs?

What are limitations and future research directions?

Yoo, B. & Donthu, N. (2001), “Developing and Validating a Multidimensional

Consumer-Based Brand Equity Scale”, Journal of Business Research, 52 (1): 1-

14.

Walsh, G. & Beatty, S. E. (2007), “Customer-based corporate reputation of a

service firm: scale development and validation”, Journal of the Academy of

Marketing Science, 35 (1): 127-43.

Prepare a short (max. 15 min., 10 slides) presentation; please use presen-

tation template on our homepage.

Be prepared to present

Please send your presentation to [email protected] until Tuesday,

12:00 o’clock

1.5 points on top of the exam. Slide 61

Chair for

Marketing and Retailing Trier University Prof. Dr. Prof. h.c. B. Swoboda

Formalities and presentation

design

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Title slide

Slide 63

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Agenda

Slide 64

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Text layout

Slide 65

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Text orientation

Below

aligned

Get drawing lines

Text and figures only within

the frame

Max.

two lines

Slide 66

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Color design

Presentation template is

available in the download

area

Slide 67

Trier University MARKETING & RETAILING Prof. Dr. Prof. h.c. B. Swoboda

Some notes for presentations

Plan the correct sheet number

A talk of 2-3 minutes is assumed per

slide. At a 10 minutes presentation this

means 5 content slides (+ title slide,

agenda, backup).

Keep in time

For overdrafts the time is canceled.

Backup-slides

Use backup slides to ease your

answering to questions.

Bibliography

The end of a scientific presentation

includes a bibliography with the used

literature.

Presentations

Each presentation should be given by

two group members, every group

member has to present at least once.

Slide 68