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Branding In

Tough Economic Times


Virginia Vann
Vice President of Institutional Marketing
Woodruff Arts Center

Branding Basics

Definition of A Brand

A name, term, sign, symbol or design or combination of


them which is intended to identify the goods or
services of one seller and to differentiate them from
those of competitors

Source: Dictionary of Marketing Terms, American Marketing Association, 1995.

Another Way of Saying It

A brand is a distinctive identity that differentiates a


relevant, enduring, and credible promise of value
associated with a product, service, or organization
and indicates the source of that promise.
Source: S. Ward, L. Light, and J. Goldstine, What High-Tech Managers Need to Know About Brands,
Harvard Business review, July-August, 1999.

Brand Positioning

The place a brand occupies in the minds of target


market consumers relative to competitive
alternatives.

Defines the specific niche the brand occupies in


the mind of the customer.
Focused on one brand attribute or known for

Brand Positioning

Refreshment
Family fun/magic
Disposable
Performance/fun to drive

Brand Equity

Brand Equity is a set of brand assets and


liabilities linked to a brand, its name and
symbol, that add to or subtract from the value
provided by a product or service without the
brand identified.

Brand equity and brand value come from


keeping the promise
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The Importance of Brand

Brands are becoming increasingly


important to consumers.

The Importance of Brand

Six Reasons Why


Reason #1: When There Are Too Many Choices
and Too Little Time, Brands Are the Shortcut
Time is becoming our most precious commodity
Fully employed households (nearly 70%)
Longer working hours longest since WWII
eMail, cell phones, PDAs, etc. driving anywhere,
anytime connectivity
Internet provides almost infinite set of alternatives
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The Importance of Brand

Six Reasons Why


Reason #2: So Much Product Noise that
Consumers Are Listening Less
Communication overload has led to tune-out
Average consumer exposed to more than 500

product messages per day (its just advertising)

New communications channels mean even more

messages and less listening

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The Importance of Brand

Six Reasons Why


Reason #3: Product Parity
Very few bad or poor quality products
Little physical differentiation
Instant imitation (nothing new or different for long)

A level playing field differentiated only by brand

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The Importance of Brand

Six Reasons Why


Reason #4: Brand-Cluster Buying Has
Become Standard Purchasing Practice
The days of generics are over
Brand set loyalty rules todays purchasing behavior
Any of three brands within the acceptable
brand set will do
Little willingness or need to purchase outside
the acceptable brand set

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The Importance of Brand

Six Reasons Why


Reason #5: No-Service/Self-Service
Selling Environments
When there are no produce advisors, brands are the only
guide to quality

The Importance of Brand

Six Reasons Why

Reason #6: Remote Buying Will Increase


Electronic ordering/purchasing will become
even more prevalent

Brand Definition Evolution

The way we think about brands is


changing

Branding: The Old World


We used to think a brand was a:
Name
Symbol
Logo
Organization
Marketings
Actual Product or Service
Responsibility
Set of characteristics and
expectations
A Promise
A Campaign
Positioning
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Branding: The New World

A brand is an intangible asset


that resides in peoples mi nds,
whi ch i s def i ned by t he
expect at i ons peopl e have
about t he benef i t s t hey
wi l l r ecei ve. h
T ese
expect at i ons of benef i t s
ar e devel oped over t i me by
communi cat i ons and - mor e
i mpor t ant l y - by act i ons.

Branding is
Experiential

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Harley Davidson Understands The Brand


Experience

The secret to our


enduring brand lies in
delivering an experience
rather than just a
collection of products
and services."
Harley-Davidson annual report 2002

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Delivering meaningful experiences is the


new branding requirement
Strong brands deliver a consistent, compelling
customer experience at all points of availability
We try to create, in our stores, an oasis,
a little neighborhood spot where you can
take a break, listen to some jazz, and
ponder universal or personal or even
whimsical questions over a cup of coffee

--Howard Schultz, CEO


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In Summary
Successful Brands Arent Created in the Marketing
Department alone Theyre Created in Every Area
of the Operation
Defined every day by decisions and actions that occur
in every part of the operation
Every decision is made with impact on brand in mind
Every person in the company has a personal
stake in the brand

Building & Maintaining a Brand


(with and without $$$)
1. Be Relevant
Cingular Brand Promise: We promise to better
enable you to speak and be heard, to listen and
learn, to recognize and be recognized, by
creating opportunities and removing barriers to
self expression.
Alliance Theatre Brand Promise: A season at the
Alliance will engage your heart, mind and funny
bone through theatre that is original, worthy and
memorable.

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Building & Maintaining a Brand


(with and without $$$)
2. Integrate Into Everything You Do
Cingular Brand Personality: Creative. Optimistic.
Fun. Simple. Confident. Trustworthy.

Alliance Brand Personality: Innovative. Powerful.


Memorable. Sophisticated. Engaging.
Accessible.

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Building & Maintaining a Brand


(with and without $$$)
3. Be Consistent

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Building & Maintaining a Brand


(with and without $$$)
4. Never Underestimate The Power of Your
Employees

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Building & Maintaining a Brand


(with and without $$$)
1. Be Relevant
2. Integrate Into Everything You Do
3. Be Consistent
4. Never Underestimate The Power of Your
Employees

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Tough Economic Times


A Brand Risk
&
A Brand Opportunity

Pricing
Brand Risk:
Discounting and Product Devaluation
Brand Opportunity:
Increasing Pricing Band
Targeted Price Promotions
Adding Value
Highlighting Price Advantage

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Promotion
Brand Risk:
Stop Spending
Brand Opportunity: Capitalize On Consumer Wants
Value
Trust
Nostalgia
Affordable Escapism

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Branding
$$$
=
Good Times

Branding
$
Tough Times

"A brand takes a long time to build, and a long time to


destroy, and both happen as a result of lots and lots
of small actions. If you want to be strong, each point
along the way has to be as close to perfect as
possible.
Michael Eisner, CEO Disney, 1999

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