marissa burkett h. stern brand brief

Brand Audit

Ashley M. OrndoffMarissa Burkett

Nigar KanjiAlex Higgins

Global Branding Study Abroad-Brazil Courses

April 2009

What Is H.Stern?

• http://www.youtube.com/watch?v=q2wS_V2QE1I

http://www.youtube.com/watch?v=q2wS_V2QE1I

http://www.youtube.com/watch?v=q2wS_V2QE1I

Foundations for Building Marketing StrategyCustomer Knowledge

• H. Stern is a family owned jeweler that first opened its doors in 1945.

• The company focuses on pairing the finest quality jewels with the most innovative design.

• When asked about H. Stern, customers might describe the company as “unique,” “high-status,” and “luxurious.”

Brand Equity

Customer BasedBrand Equity

Customer Loyalty

BOND

Differential Effect

Brand Knowledg

e

Brand Awareness

Brand Image

Brand Recognition

Brand Recall

Advertising

Merchandising

Sponsorship

Word of Mouth

AssociationsPerceptions

Value Proposition

Customer

Competitors

CompanyTargeting

Differ

entia

tionPositioning

Strong

Unique

Favorable

Value Creation

Value Satisfaction

Value Commitment

Brand Value

Shareholder Value

Brand Performanc

e

Service

Support

Value for money

Consumer Reports

Consumer Identification of

Brand with Company, County, Channel, Person,

Place

I want H. Stern’s

Elegance!

5

Variable OperationalDefinition

Applied by H. Stern

Advertising Any paid form of non personal presentation and promotion of ideas, goods, or services by an unidentified sponsor.

H.Stern’s entity (magazine, spa, restaurant), Celebrities (Grammy’s Oscars)

Merchandising A term of many varied and not generally adopted meanings. It can (1) relate to the promotional activities of manufacturers that bring about in-store displays, or (2) identify the product and product line decisions of retailers.

Sponsorship Advertising that seeks to establish a deeper association and integration between an advertiser and a publisher, often involving coordinated beyond-the-banner placements.

Endorsements: Celebrities (Grammy’s, Oscars, Red Carpet Events)

Word of Mouth Personal communication about a product between target buyers and neighbor, friends, family members, and associates

Relying on the customers to share their interpretation of HStern

Independent Variables

6


Applied by H. Stern

Associations The attributes and benefits that characterize the most important aspects or dimensions of a brand. They can serve as the basis of brand positioning in terms of how they create points of parity and points of difference.

•Points of Difference •Associations•Points of Parity Associations

Perceptions Based on prior attitudes, beliefs, needs, stimulus factors, and situational determinants, individuals perceive objects, events, or people in the world about them. Perception is the cognitive impression that is formed of "reality" which in turn influences the individual's actions and behavior toward that object.

•Luxurious•High-end•High social status•Elegant


7


Applied by H. Stern

Positioning The act of designing the company’s offer and image so that it occupies a distinct and valued place in the target customer’s minds.

•Custom Made to Order •Innovative Design

Differentiation A market covered strategy in which a firm decides to target several market segments and designs separate offers for each.

Image Differentiation: luxurious, elegance

Service Differentiation: family owned and operated


8


Applied by H. Stern

Brand Knowledge

A result of consumers’ knowledge about the brand. The key to creating brand equity.

•Family owned and operated•Good Customer Service•Distinct •Custom Made to Order

Brand Image The perception of a brand in the minds of persons. The brand image is a mirror reflection (though perhaps inaccurate) of the brand personality or product being. It is what people believe about a brand-their thoughts, feelings, expectations.

• Gain Social Approval•Unique •Rare pieces

Mediating Variables

9


Applied by H. Stern

Brand Awareness

consumer knowing of a brand's existence; at aggregate (brand) level it refers to the proportion of consumers who know of the brand. two components of brand awareness is brand recognition and brand recall.

Brand recognition Consumers’ ability to e able to recognize the brand as one to which they have already been exposed toBrand recall. Consumers’ ability to retrieve the brand from memory when given the product category ,the needs fulfilled by the category, or a purchase or usage situation as a cue.

Brand Performance

Describes how well the product or service meets customers’ more functional needs.

•Product reliability•Efficiency•Durability•Highest Quality

Customer Loyalty

The degree of a customer staying with a specific vendor or brand.

Customers willingness to invest time, energy, money or other resources in the brandRepeat Purchases

Mediating Variables

10


Applied by H. Stern

Brand Equity marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name

Market Share

Customer Based Brand Equity

The differential effect that brand knowledge has on consumer response to the marketing of that brand

Shareholder Value

business buzz term, which implies that the ultimate measure of a company's success is to enrich shareholders.

Stock PricePrice/Earnings MultipleMarket Capitalization

Dependent Variables

Position and Values

Includes:• Market Segmentation• Market Targeting• Differentiation• Positioning

Position and Values

• Market SegmentationDivides the market into distinct groups of

homogeneous consumers who have similar needs and consumer behavior, and who thus require similar marketing mixes

According to Claritas PRIZM NE, H. Stern applies to the Segments of Urban Uptown, the Elite Suburbs to some extent, the Landed Gentry Segment groups. these represent the Upper and Higher Middle classes.

Position and Values

Points of Parity High Quality Hand Crafted Top Gems and Metals Popular Design

Points of Difference Handpicked Gems Overall Buying

Experience Innovative Design Nature Oriented Stern Star Collection Noble Gold

DifferentiationThe degree to which our corporate brand is seen as different from others.

Position and Values

• Market TargetingThe specific part of the population to whom a product offering is aimed and all marketing communication is tailored.

Concentrated Marketing - H. Stern has diversified their target market opening the spa and restaurant. This add business (and leisure) lunch diners to their repertoire of already affluent shoppers. These people demand quality and service. By limiting the hours of the restaurant, H. Stern ensures that Eca is a destination experience, and not just chosen out of pure convenience. These market segments frequently overlap.

Position and Values

• PositioningThe act of designing the company’s offer and

image so that it occupies a distinct and valued place in the target customer’s minds.

When customers think “H. Stern” they think quality and opulence. Furthermore, words such as “shiny,” “bold,” and “unique” may bring H. Stern to mind.

Branding Strategy

Brand Elements

Secondary Associatio

n

Marketing Programs

Brand Awareness Brand Image

Judgments Feelings

Performance

Imagery

Salience

Relationships:What about You and Me?

Response:What about You?

Meaning:What are You?

Identity:Who are You?

Market Share

Branding Strategy

Branding Strategy has three components:

• Development of Marketing Programs which consist of Product, Price, Distribution Channels and Communication

• Carefully chosen Brand Elements• Secondary Associations made in relation

to the brand.

Developing Marketing Programs

Marketing

Program

Price

Product

Distribution Channels(Place)

Communications(Promotion)


Product StrategyDiscusses how value and quality perceptions are formed by

consumers and includes both tangible and intangible benefits.

• Functional benefits – H. Stern creates high value, high quality jewelry from the finest locally mined gems.

• Process benefits – H. Stern has 160 stores in 12 countries and has infiltrated most luxury hotels. Furthermore, H. Stern jewelry is available in high end department stores and online.

• Relationship benefits - H. Stern is an easy company to love, an inspiring rags to riches story. The dedication and enthusiasm of it’s employees is inclusive and makes the consumer want to be part of the circle. Henceforth, people want the company to succeed. Also, the spa and Eça emotionally draw people into the entire experience.


Pricing StrategyDictates how consumers categorize the price of the

brand and how firm or flexible the price is. Price can lead to consumer associations of perceived value and price categories.

H. Stern is a high end luxury good. It’s prices potentially can go into the millions of dollars making it only accessible to the wealthiest consumers. This knowledge adds to H. Stern’s Customer Based Brand Equity by offering it’s lucky ladies a feeling of high status and social approval.


Channel StrategyThe manner by which a product is sold

or distributed, includes intermediaries on all levels of the chain.

Concentrated in high-end department stores, luxury hotels, company owned flagship stores and the Tel Aviv airport.

These stores employ top notch experienced salespeople which enhances H. Stern’s customers’ buying experience.


Communication StrategyMarketing communication is the process of informing,

reminding, and persuading the consumers about a particular product or service. (bnet.com)

• Advertising• Celebrity Endorsers – H. Stern regularly offers their

jewels to celebrities to wear to the Oscars, Grammy’s and such. This gives them free advertising as every fashion magazine in the world covers what each starlet wore on the red carpet.

• Marketing Programs• Word of Mouth• H. Stern magazine – This allows H. Stern to directly

control what the consumer reads and learns about their company.

Branding Strategy

Brand Elements


n

Marketing Programs


Judgments Feelings

Performance

Imagery

Salience





Market Share

Choosing Brand Elements

• Brand IdentityThe contribution of all brand elements to brand

awareness and image• Name• Logos• Packaging


• NamesCompanies named after their founders

often provoke a feeling of intimacy. The name H. Stern represents dedication, commitment to quality and vision.


• LogosThe H. Stern logo has evolved over

the years. The new logo, adopted in 2001 adds a new modernity to the company. Roberto Stern says “It’s classic, but with a very sensual, assertive ‘S’ that will be modern, even fifty years from now.”


• PackagingH. Stern’s main packaging is in their display. H. Stern takes

great care to ensure that their stores mirror their jewelry in design andopulence. Furthermore, The H. Stern museum and gem tour allows potential customers to become part of the process, forming an emotional bond with the company which should lead to greater customer Loyalty.

Leveraging Secondary Associations

• Celebrity EndorsersA celebrity endorsement is

great publicity for any firm but H. Stern manages to get it’s jewels on some of the world’s leading ladies year after year. This exposes them to an entirely different market (think upper middle class housewives and affluent teenagers) that may not have had exposure to the brand before.

Branding Strategy

Brand Elements


n

Marketing Programs


Judgments Feelings

Performance

Imagery

Salience





Market Share

Brand Awareness

• Brand Awareness is the strength of the brand node or trace in memory, the consumer’s ability to identify the brand under different conditions.

H. Stern jewelry is becoming more recognizable in the world. Their attention to detail and the finest cuts and quality have them a favorite with gem

aficionados while their celebrity endorsers have increased brand knowledge to the rest of the world.

Brand Image

• Marketing programs that link strong, favorable, and unique associations to the brand in memory create a positive brand image. Consumers can form brand associations through direct experience to information from commercials or nonpartisan sources. The Brands attempt to meet customers’ psychological or social needs.

Branding Strategy

Brand Elements


n

Marketing Programs


Judgments Feelings

Performance

Imagery

Salience





Market Share

What about the Customer & H.Stern?

( Brand Resonance)What about the H.Stern Customer?

(Consumer Judgments)What about the H.Stern Customer?

(Consumer Feelings)What is H.Stern about?(Brand Performance)

Who is H.Stern?(Brand Salience)

What is H.Stern about?(Brand Imagery)

Brand Building Blocks Definition H. Stern

Salience Salience refers to the recall and recognition of a brand as well as a consumers consideration of the product

The name H. Stern is known throughout the world for it’s quality and innovative design.

Performance Performance addresses primary characteristics of a product as well as aspects such as reliability, durability, style, design and price

H. Stern jewelry is reliable and of the highest quality jewels and craftsmanship. It inventive without being trendy.

Imagery Imagery concerns a brand’s personality, usage, and history as well as the market’s perceptions of it.

H. Stern is seen as a progressive company loved by the very wealthy and celebrities. It is family owned and operated and built from the ground up.

Judgment Judgment addresses a brand’s quality, credibility, superiority and relevance.

H. Stern is supreme quality and cutting edge. It is unique, modern and exclusive.

Feelings Feelings refers to how a brand makes a consumer feel.

H. Stern jewelry gives customers a feeling of self-respect and social approval. When bought for yourself, it is self-rewarding.

Resonance Resonance concerns brand loyalty and attachment plus active participation in a brand’s community.

H. Sterns uses it’s restaurant, home store and spa to create an entire H. Stern community. The inclusive environment creates customer loyalty.

Who is H. Stern?

• H. Stern is synonymous in South America and around the world with high quality gems; and to a further extent, they are known for being a company that has succeeded through hard work, ingenuity, top quality and performance.

• Maintains awareness through its vertically integrated marketing system.

– Hans Stern wanted to “make the country of Samba and Soccer also known as the country of colored gemstones.”

• The customer can recall H.Stern through its:

– Guided Tours that give step-by-step views of the design process

– Modernized Moniker that coveys the company’s ideals

• The brand is recognizable through the famous necks and wrists whose H.Stern jewels are seen adorning.

– Partnerships with Respected Colleagues – “Appear predominately in the world’s

most respected fashion magazines.”

Salience•Is the customer

aware of H. Stern?

•Does the customer recall

the H.Stern Brand ?

•Does the customer

recognize the H.Stern Brand?

What is H. Stern about?P

H. Stern Brand Performance• H. Stern jewelry is made of the finest quality gems

by the highest qualified designers and gemologists. It is within the top four of international jewelers and hold’s its value well.

• “The Gemological Laboratory’s standards are in accordance with GIA.”

• Hans “Invested in quality, creating in 1949 an International Warranty Certificate to attest to the value of his jewels.”

H. Stern Brand Image• H. Stern offers high-end luxury items promoted

through celebrities and endorsers. It is often seen as modern and exotic.

• H. Stern realizes that women buy jewelry in order to reward themselves or to gain social approval from their peers. By making unique, rare pieces, a woman’s ultimate jewelry need is fulfilled: to have a piece that is entirely their own

• “Buying a jewel becomes a treasured moment of pleasure.”

Performance •What makes a customer want to purchase from

H.Stern?

Imagery•What type of associations do customers form from

wearing H.Stern?

What about the H. Stern customer?

H. Stern Brand JudgmentsH. Stern Jewelry is thought of to be

exclusive, unique and of progressive design; Family owned and operated, H. Stern is seen as a company built on hard work and innovation

Seen as “daring and innovative, clean and contemporary-attracts men and women of every nationality and generation.”.

H. Stern Brand FeelingsH. Stern jewelry gives a feeling of

achievement , status and social approval. When a woman buys it for her self, it is self rewarding and offers a feeling of accomplishment.

When purchasing a piece, the customer can feel as though they are part of an elite society, owning a piece that was created for them alone.

JudgmentsWhat are the customers personal opinions and evaluations of the H.Stern Brand?

FeelingsHow does the H.Stern brand

affect customer’s

feelings about themselves and

their relationship with others?

What about the customer and H. Stern?

H. Stern Brand Resonance

• The company’s spa, restaurant and home store create an entire H. Stern community.

• This exclusivity leads to greater customer brand loyalty all around.

• Every H.Stern employee strives to build relationships with their customers, gaining customers-for-life.

• The customer is never pressured to purchase in a given moment

ResonanceHow well do

H.Stern’s customers feel a connection

with the brand?

Sources of Brand Equity

H. Stern creates Customer brand equity through the many H. Stern product options, special services and personalized care.

• International Warranty Certificate – H. Stern offers a certificate in order to “attest to the value of his jewels.” (H. Stern website)

• H. Stern Spa – H. Stern offers services in addition to their jewelry line that maintain the goal of providing customers with a luxurious experience. The H. Stern website sums it all up “To transform dreams into reality. This is H.Stern´s mission. And this principle is not restricted to the creation of products of the brand, but it’s also extended to the services we aim to offer to our customers.” This conveys the kind of added value that customers look for in a brand.

• Eça Restaurant - The Restaurant not only adds to the H. Stern jewelry buying experience, but it gives the company access to an entirely different market; the business world. H. Stern says that its restaurant is “transforming any business lunch into a delightful pleasure time.”

• H. Stern Home – H. Stern Home rounds out the overall experience by bringing the incomparable quality and pioneering design of H. Stern gems into the kitchen. Like Tiffany &Co., a major competitor, H. Stern offers china settings, accessories and lighting. If very pleased with the jewelry, a customer may be more inclined to buy their furnishings at H. Stern, and vice versa.

Sources of Brand Equity

• H. Stern Magazine – The Magazine builds Customer Equity in many ways and has many different benefits:• Each magazine offers a behind-the-scenes view of

the company and fashion which draws the consumer into the story as though they were somehow part of the business.

• The magazines feature celebrities who have been wearing their jewelry, creating a desire for those influenced by celebrity culture to buy H. Stern’s jewelry as well. This could make the socially conscience consumer feel that “if it is good enough for Angelina, it’s good enough for me.”

• Each magazine showcases the H. Stern collection, thereby exposing its wares to a larger geographical market.

References

• Philip Kotler, Principles of Marketing, 12 th edition, Prentice Hall, 2007.

• http://Bnet.com • http://www.claritas.com/claritas/Default.jsp

?ci=3&si=4&pn=prizmne_segments• Keller, Kevin. Strategic Brand

Management, 3rd edition. Prentice-Hall, 2008.

• H. Stern website: http://hstern.net • http://www.thetimes100.co.uk/case-study--

the-use-marketing-mix-product-launch--87-303-1.php

http://bnet.com/

http://www.claritas.com/claritas/Default.jsp?ci=3&si=4&pn=prizmne_segments

http://www.claritas.com/claritas/Default.jsp?ci=3&si=4&pn=prizmne_segments

http://hstern.net/

http://www.thetimes100.co.uk/case-study--the-use-marketing-mix-product-launch--87-303-1.php



marissa burkett h. stern brand brief

Documents

international warranty certificate

family owned

social approval

home store

brand equity

stern website

judgments feelings

resonance response