Managing Customer-Based Brand Equity: the process ... Which are the implications in terms of the brand value proposition? .... tailored to cultural differences.
Contents ont nts
Building Customer-based Brand- Equity Managing Customer Customer-Based Based Brand Equity The promotional Mix- The adaptation Issue Internationalization Degree and Communication Tools • Leveraging COO • Communication trends • • • •
INTERBRAND – B Brandd equity it Ranking R ki W Worldwide ld id • What is a brand? • Which are the world champions?
The importance of a strong brand and the „door door“ example Shall I open?
Marketer Customer The message is sensible enough
The knock is loud and clear enough
Entrance allowed 3
world champions
world champions
world champions
world champions
Customer-Based Brand Equity (Aaker Keller Model) (Aaker, TOOLS AND OBJECTIVES
Choosing Brand Elements Brand name Logo Symbol Ch Character t Packaging Slogan
}
Memorability Meaningfulness T Transferability f bilit Adaptability Protectability
KNOWLEDGE EFFECTS
Brand Awareness Depth
Recall Recognition
Breadth
Purchase Consumption
Developing Marketing Programs Product Price Distribution channels Communications
Functional & symbolic benefits Value perceptions Integrate “Push” & “Pull” Mix and match options
BRAND IMAGE Brand Associations Strong
Relevance Consistency
Favorable
Desirable Deliverable
Unique
Point of parity Point of difference
Leverage of Secondary Associations Company Country of origin Channel of distribution Other brands Endorsor Event
}
Awareness Meaningfulness Transferability
BENEFITS
Possible Outcome • Greater loyalty • Less vulnerability to competitive • Marketing actions and crises • Larger margins • More elastic response to price • Sales increases • More inelastic response to price increases • Increased marketing communication efficiency and effectiveness • Possible licensing opportunities • More favorable brand extension evaluations
Brand Elements, GE example. The necessity of Evolution!
Managing Customer-Based Brand Equity : the Process ASSOCIATIONS Choosing Brand Elements Brand name Logo Symbol Ch Character t Packaging Slogan
Leverage of Secondary Associations C Company Country of origin Channel of distribution Other brands Endorser Event
ACTIONS
POD POP NEGATIVE
put forward” its points-ofdifference (POD) “reassure” on its points-of-parity (POP) “ h “change customers’ perceptions” on negative brand associations
Managing Customer-Based Brand Equity: the process • •
•
Example: STARTING POINT POINT: Gi Given 2 diff differentt purchasing h i patterns tt
Customer A
Customer B
INSTALLED BASE 10%
INSTALLED BASE 60%
CONSUMABLES
70%
CONSUMABLES
30%
TECHNICAL ASSISTANCE
20%
TECHNICAL ASSISTANCE
10%
Which are the implications in terms of the brand value proposition?
Key selling proposition and researched benefits must be coherent Identify the key selling points (maximum of 5) for each customer’s typology typology, choosing those that most differ between the two profiles
Customer A
Customer B
Managing Customer-Based Brand Equity • “Selling” a brand is a matter of: – “put forward” its points-of-difference (POD) – “reassure” on its points-of-parity (POP) – “change g customers’ p perceptions” p on negative g brand associations
Managing Customer-Based Brand Equity Q1 - which is the brand image in customers’ minds? Remember that brand associations can be of different nature and typology To help you build the GE brand image, ask yourself what would your customer say if you asked him “what comes to mind when you think of GE”?
? ? ?
? ?
Q2 - which of the identified associations are POD, which are POP and which are negative associations that need to be fixed? POD Associations that are strong, favorable and unique to the brand
POP Associations ssoc at o s sshared a ed with t competitors. They can be “category” and/or “competitive”
NEGATIVE ASSOCIATIONS
• pod 1 • pod 2 • pod 3
• pop 1 • pop 2 • pop 3
• na 1 • na 2 Associations linked to GE • na n that are perceived as negative by customers
Managing Customer-Based Brand Equity : the Process ASSOCIATIONS Choosing Brand Elements Brand name Logo Symbol Ch Character t Packaging Slogan
Leverage of Secondary Associations C Company Country of origin Channel of distribution Other brands Endorser Event
ACTIONS
POD POP NEGATIVE
put forward” its points-ofdifference (POD) “reassure” on its points-of-parity (POP) “ h “change customers’ perceptions” on negative brand associations
C Communication i ti mix i
Communication Mix: the different tools
Ad t ti Adaptation requests are per se diverse
• Advertising g : if f no obstacle is f found o if fp planned to be global, it can be standardized • P.R.: can’t be standardized, choice and features d depending di on llocall culture lt • Personal selling: communication differs from market to market (cultural determinants) determ nants) • Promotion: tactical tool, differs from market to market depending on local goals
Communications Mix and International Communication Policy y
Integrated Communication plans may combine differently the same tools
Commun nication Inv vestment
The different tools and their importance depending on market penetration or i internationalization i li i d degree
advertising
DIRECT MARKETING
FAIRS
bROCHURES MARKET PENETRATION
The Communication Process
The Marketing Communication Process: obstacles b t l tto glibalization lib li ti Coded message
International Marketer
Decoded message
Language differences Tastes, Attitudes Economic Differences Agency Availability Legal constraints y Media Availability Local approaches
Foreign F i buyers
Choosing the Advertising Message l localised l d or standardised? d d d Market considerations - buyers/clients consumption system - language - international market segments Other considerations - economical environment - media di d developments l t - regional or global product introductions - governmentt regulations l ti
Choosing the Advertising Message localised or standardised?
Sometimes an advertising strategy can be a "chameleon", with different meanings in different cultures cultures, but with positive associations for the target audience in all of them. When this happens, as it has with "the Marlboro man" for over fifty years in American culture and across the globe, it can be a truly global campaign.
Even though the Coca Cola Light campaign "Just for the Taste of It" was used in many y different countries, the execution of that strategy was tailored to cultural differences. Note the sensuality of the French appeal, versus the British and more modest Korean and Thai ads. This campaign shows how a global theme and creative strategy gy may y be adopted p for use in multiple countries and markets, simply by adjusting the details of its execution.
Example: Global Theme – different execution
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Addressing language constraints
Translation: Does the translation literally MEAN anything undesirable? Transliteration: ransliteration Does the translat translation on CONVEY anything undesirable? Transparency: Developing a new name/slogan (meaningless in any language) to avoid complexities of translation from one culture to another Transculture: Using a foreign (desirable) name f the for th product p d t no n m matter tt where h th product the p d t wass made (e.g., French name for wine)
Legal g Constraints--examples p Cigarettes g and Tobacco Products Banned in France, Ireland (except for magazines), Italy, Netherlands (banned in broadcast must carry health warning broadcast, elsewhere), UK (banned in broadcast approval needed for print) Alcohol France (banned for products over 1.2% alcohol), Ireland (banned in broadcast allowed i print) in i t) It Italy l ((restricted), t i t d) N Netherlands th l d (permitted in all media but regulated), UK (banned in broadcast; other media have voluntary l t restrictions) t i ti )
Legal g Constraints--examples p Comparative advertising Once banned in Italy y it is now possible p due to the European Directive but: In Italy you can quote only objective features.
Different approaches to advertising Spanish language advertising has lots of "word play." This reflects
the way in which persons who speak Spanish (in Spain and the Am i s) use Americas) s their th i language l n to t suggest s st double-meanings, d bl m nin s ambiguities, mbi iti s or paradoxes. French television advertising is often designed to be viewed as "little films", a result of the French view that advertising must "seduce" films seduce its audience. British advertising uses humor in various forms, but particularly word and visual puns. British agencies believe that advertising must entertain the audience to compensate for the "intrusion" ads make. Chinese advertising reflects the importance of being in harmony with nature, a strong g value of many y Eastern cultures. The use of English in Japanese-language advertising signifies "modern", "foreign", or "American" to Japanese consumers, without having to say the product is from an American source, which may not be the h case .
And what about media? Gl b l or llocall Global
• Personal contacts
• media
Personal Contacts
The marketing communication mix changess wor chang worldwide w Decrease Spending
Increase Spending
Digital
Two-wayy
Mobile PR Events Direct Mail TV
One-way
Print O t off H Out Home Radio -100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
% of Respondents 35 Source: Marketing & Media Ecosystem 2010 survey and Booz Allen analysis, 2008
Questionnaire results Questionnaire results Q
•
749 completed surveys
•
Young Europeans 65.7% between 22 and 26 years old, 14.2% between 27 and 30 years old
•
65 4 % students 65.4 students, 31 31.1% 1% employees
•
48.6% female, 51.4% male respondents
More important than average
Less important than average
Advertisement on TV
Switzerland, Italy, Poland
Greece, Belgium, France, Sweden, Spain
Online information/ advertisement
Czech Republic, Germany
Greece, Switzerland, Finland, France, Norway
Article in consumer magazine
Italy, Germany, Slovakia
Switzerland, Sweden, Norway, France
Expertt E recommendation
Italy, Greece Italy Greece, Czech Republic
Sweden, Finland Sweden Finland, Norway, Spain, UK, Denmark, Belgium
Friends/family recommendation
Greece, Netherlands, Italy
Denmark, Sweden, Belgium, Spain, Norway, France
How much time youspend spendwatching watc How much time dodo they TV?
Questionnaire results 35,0% 35,0 32,6% 30,0%
25,0%
23,5%
23,1%
20,0%
15,0% ,
15,0%
10,0%
56,1% 5,9%
5,0%
0,0% I hardly ever watch TVLess than 30 min
30 min to 1 hour
Up to 2 hours
More than 2 hours
Italian TV Positioning Adulti Index vs. population
160
140
120
Altre TV Ter 100
Uomini
Donne TV Sat
80
60
40
20 75
85
95
Giovani
105
Fonte: Auditel / Audistar
115
125
How much time do you spend listening to How much time do they spend listening radio?
Questionnaire results
35,0%
31,9% 30,0%
28,0%
25,0%
22,8%
20 0% 20,0%
15,0%
9,1%
10,0%
8,1%
59,9% 5,0%
0,0% I hardly ever listen to the Less than 30 min radio
30 min to 1 hour
Up to 2 hours
More than 2 hours
Questionnaire Questionnaireresults results Percentage of people who hardly ever listen to the radio on a country level 70,0% 60,0% 58,3%
50,0%
40,0%
45,8% 42,9% 40,9% 39,6% 38,1% 36,2%35,9% 33,3% , 31 8% 31,8%
30,0%
31 9% 31,9%
27,3%27,0% 25,8%25,0% 23,1%22,8% 20,0%
20,0%
16,2% 11,1%
10,0%
ta l To
re
ec e
e G
Fr an c
gi um
Be l
ria st Au
Sp ai n Po la nd
us Re pu bl ic G er m an Sw y i tz er la nd Fi nl an N d et he r la nd s H un U ni ga te ry d Ki ng do m
pr
ec
h
Cy
Cz
It al y
Sl ov ak ia Sw ed en D en m ar k N or w ay
0,0%
How much time do they spend reading newspaper?
Questionnaire results
How much time do you spend reading the newspaper/magazines? 45,0%
42,5%
41,1% 40,0%
35,0%
30,0%
25,0%
20 0% 20,0%
Greece 22,2% Belgium g 20% Cyprus 19%
15,0%
10,0%
83,6% 7,2%
7,7%
5,0% 1,5% 0,0% I hardly ever read the newspaper
Less than 30 min
30 min to 1 hour
Up to 2 hours
More than 2 hours
How much time do they spend surfing the Internet?
Questionnaire results
How much time do you spend surfing the Internet? 40,0% 34,6%
35,0%
30,0%
25,0% 21,8% 20,0%
18,6% 15,9%
15,0%
10,0%
8,5%
90,9%
5,0% 0,7% 0,0% I hardly ever surf the internet
Less than 30 min
30 min to 1 hour
Up to 2 hours
Up to 4 hours
More than 4 hours
Questionnaireresults results Questionnaire Surfing the Internet more than 30 min per day on a country level 100,0%
100 0% 100,0% 97,4% 95,5%95,0% 94,6% 93,6% 91,7%91,1% 90,5% 88 9% 88,9%
95,0% 90,0%
90,8%
86,5%86,5% 83,9% 81,8%81,8%
85,0%
79,2%78,6% 78 6% 77,8%
80 0% 80,0% 75,0%
70,0%
70,0% 65,0%
ta l To
Re pu bl ic Sl ov ak ia Au st ria Cy pr us G re ec e Fr an ce H un U ni ga te ry d Ki ng do N m et he r la nd s Fi nl an d Sw ed en D en m ar Sw k i tz er la nd Be lg iu m
It al y
h ec Cz
Sp ai n
G er m an y N or w ay
Po
la nd
60,0%
Questionnaire Questionnaire results results Online services used Percentage Yes 100,0%
94,1%
90,0% 80,0% 65,6%
70,0% 60,0%
61,4% 59,9% 58,7% 52,3%
50,0%
47,1%
40,0%
42,3% 34 6% 34,6% 29,2% 27,4% 27,2%
30,0% 20,0%
22,0%
18,7%
15,2% 13,8%
10,0%
gr
ou
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at fo
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bl og s
rm eB s/ ay da ta -s ha rin g
on lin
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te s ne w sp ap M er SN s M es se ng er
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Sk yp e iv er
e/
un
ai rli n
em ai l
0,0%
Questionnaire results Does Internet advertising catch your attention?
4,5%
Yes, very often 34,3% 45,9%
Only some of them No never, I don't even notice them I notice them but try to avoid them because they annoy me
61,1%
15,2%
Questionnaire Questionnaireresults results People who do not notice Internet advertising on a country level 35,0%
30,0%
30,0% 27,0%
21,4%20,8% 20,0% 19,0% 18,2%18,0% , 16,8% 15,2%
14,9%
15,0%
11,1% 10,0%
9,7% 9,1%
7,7% 5,4% 5,1% 4,5%
5,0%
0,0% Fi nl an d G re ec e
y A Cz us tr ec ia h Re pu bl Sw ic i tz U er ni la te nd d Ki ng do N m et he r la nd s Po la nd H un ga ry G er m an y
al It
Sp ai n Fr an ce Sl ov ak ia D en m ar k Sw ed en Be lg iu m Cy pr us N or w ay
0,0%
ta l
20,0%
25,0%
To
25,0%
Questionnaire Questionnaireresults results People who are annoyed by Internet advertising and try to avoid it on a country level 80,0% 71,0% 70,0% 61,5% 60,0%
57,6% 55,6% 53,8% 52,5% 50,0%50,0%
50 0% 50,0%
45,9%45,9%45,8% 42,9% 40,4%40,0%40,0%
40,0%
45,9%
34,2%33,3% 31,8% 28,6%
30,0%
ta l To
ar k
ay
en m D
N
or
w
ec e re
G
It al y
Sp ai n Be lg iu m
us Re pu bl ic
pr
h
Cy
Fi nl an d Sl ov ak ia Fr an ce H un ga ry Sw ed en
ria st
Au
la nd et he r la nd Sw s i tz er la nd G er m an y
Po
N
ec Cz
U
ni
te d
Ki
ng
do m
20,0%
Questionnaire results Questionnaire results Q Do you notice outdoor posters?
95,3% 43,3%
52,1%
4,7%
Yes No Only some of them
Questionnaire results Questionnaire results Q How often do you... in your free time? Percentage Very often/Often 80,0% 71,7% 70,0% 60,0%
57,1%
55,3% 50,6%
50,0%
46,2%
44,9%
40,0% 29,5%
30,0%
26,0%
23,8% 23,0%
21,1%
23,8%
20,0% 6,8%
10,0%
go
to
to
a
th e
ci
ne m
os di sc to
go
lo un ge
ba
rs
go
go
w i th
a
ca
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pl ay
to
yo u
r
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sh op co pi ng m pu te r ga m es
ak e /l ac h
be th e go
to
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or sp ay pl
e th to
ts
ra di o
TV w at ch lis
su rf
th
e
In
te rn e
t
0,0%
40% Indians still don’t own TVs TV
No TV 100%
C&S (Analog+Digital) Digital g
90%
49%
44%
38%
35%
34%
90% 84%
HD
80%
92%
73%
70% 60%
59%
50%
41% 37%
40%
51%
56%
62%
65%
66%
25%
30% 20%
10% 10%
0% 0%
2005 2008 2011 2014 2017
0%
1%
3%
5%
2005 2008 2011 2014 2017
Indians n ans spend sp n lesser ss r time t m on TV V
4,83 Irregular Power Supply
3,33
US
Phillipines
3,30
Malaysia
3,02
Indonesia
2,60
2,55
China
India
Leveraging positive COO- effects
A Associations i ti between b t C Countries t i and d Att Attributes ib t Country
France
UK
Germany
Italy
Japan
Spain
USA
Reliability
19.6
6.8
65.3
13.3
22.4
1.5
11.4
Style
38.8
16.4
18.0
42.9
7.4
4.4
8.6
Design
32.4
7.0
17.0
47.6
14.9
3.9
12.7
Attractive Prices
22.5
4.3
50.5
19.2
13.8
1.4
6.8
After sale service
22.5
4.3
50.5
19.2
13.8
1.4
6.8
Solidity
13.0
6.7
70.4
10.0
16.8
1.1
9.1
Quality
22 6 22.6
78 7.8
59 2 59.2
17 6 17.6
21 2 21.2
20 2.0
10 6 10.6
Value for money
19.9
3.3
32.8
19.8
35.0
5.6
7.9
Technology
11.2
1.9
29.8
7.0
61.9
0.8
23.4
Refinement
48.5
11.3
19.6
33.5
10.0
2.5
15.3
Dubois, Paternault, 1997
Tool 1 - template 1
Managing the lifecycle equation Q2 – which are the common characteristics which favour global communication? Describe obstacles Common characteristics
EXPLAINATION •
COO Lyfe cycle phase Agency Availability Legal constraints Media Availability
Local Distributors
Tool 1 - template 3
Managing the lifecycle equation Q3 – can we leverage a unique set of associations? Describe them
ASSOCIATIONS •
• who h • why
Tool 1 - template 4
Managing the lifecycle equation Q4 - which is our key selling proposition MARKET BY MARKET? Identify the key selling points (maximum of 5) for each customer’s typology, choosing those that most differ between the two profiles Market A
Market B 1.
56
NESTLÉ É‘s Bra anding g Tree
Localised Communication Programs
Example p
Mr. Proper & Mr. Clean & Mastro Lindo
57
