What is a Brand?

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Branding “Coca Cola is a BRAND”

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What is a “Brand”

•A name, term, sign, symbol, or design, or a combination of them, which is intended to identify the goods or services of one seller of group of sellers • and to differentiate then from those of competitors

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Branding Why? •Top Brand = Market leadership •Strong Brand = Better margins •Strong Brand = Longer life cycles

Strong brands are profit generators

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The anatomy of the brand: Criteria for a successful brand

•As a product it should offer functional benefits, which are equal or greater than those of competitors •The brand should offer invisible benefits (values)

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The anatomy of the brand: Criteria for a successful brand

•All the benefits must be in balance and must form a personality to a brand •The values must be desirable

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Positioning a brand

A

B

E Price

C

D

Quality

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Choosing the position

• Position has to be meaningful • Must be based on real strengths • Must reflect the real competitive advantage • Must be easily & clearly communicated

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Brand Equity

Attributes associated with the brand (good or bad), which either increase or decrease the value of the product or service

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Brand attributes (characteristics) and benefits for the customer and company

BRAND LOYALTY

BRAND QUALITY

BRAND AWARENESS

BRAND IMAGE OTHER CHARACTERISTICS

BRAND EQUITY

Offers added value to the customer by adding: •Ability to process information and decoding •His/hers confidence on buying process •Brand user satisfaction

Offers added value to the company by adding: •Increasing the efficiency of marketing programs •Brand loyalty •Spread •Possibility for a family of brands •Sales increase on other products •Lasting competitive advantage

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Levels of brand loyalty

Committed (loyal) customer Consumer likes the brand & things it as “a friend” Consumer is satisfied with the brand compared with its replacement cost Consumer has buying patterns or he is satisfied Consumer has no loyalty and he is price sensitive

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Exercise Ski resort

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Design Management ”It is as it looks ”

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Module object

To understand the importance and the basics of the Design Management ”visual language”

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What is design management ?

Design management transfers ideas to products

Creativity, Idea

Design

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Product

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Design Management

”The goal of design management is to make the company understandable.

In practice it means to design the company itself in all its dimensions and functions”

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Design Management

Design Management is a process which results high image: •For the company •And its products

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Design Management in short:

Design Management is operation model through which the Company controls its information flow, to achieve and strengthen corporate image

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Design Management Who needs it ?

The idea of the Design Management should be in minds of every company that have: •Goals to achieve •Interest groups to influence

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Design Management Why Should I be interested?

•Quality corporate image, image supports the product success •It is a mean to differentiate •It brings added value through which the company and its products will be remembered

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How is the (corporate) image formed ?

Identity: Reality

Profile: Message

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Top of the iceberg?

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Image

Profile

Customer

Product Personnel Communication Business Environment

Visible

•Structure and Organisation

Identity

•Objectives and Strategies •Business vision and ideas Corporate culture •Values and motives •Stories, history, believes

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Core Identity PHMC GPE GPE LLC LLC PHMC

The message we would like to send

Communication

Channels Carrying the message

Product

Core Identity

Environment

Behavior

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Building the company profile

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Which channel should we emphasize?

Product

Comm.

Comm.

Behavior

Core Identity

Environment

Product

Core Identity

Behavior

Environment

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Building the company profile

Comm.

Product Product

Core Identity

Behavior

Environment

Core Identity

Communication

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Environment

Behavior

Examples

Product

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•Jaguar, Mercedes

Communication •Consumer goods

Core Identity

Environment

•Hotel •Restaurant

Behaviour •Consultant

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Design Management Exercise

You have just been appointed as the first GM for the new chain of mobile phone bars (shops) Called “ Hot Stop”.

The founder of the chain gives you free hands, the only business idea he/she has is “the idea of small and efficient bar type of shops” Copyright© PHMC GPE LLC 2001-2011 sqq All rights reserved