Strategic Brand Management Ppt 322x73

Strategic Brand Management

Brand Value Chain & Testing  Evaluating the Mayo Clinic    

600k + in- and out-patients/yr Founded in 1800 by Dr William Woral Mayo & two sons. Pioneered “group practice” = Two heads are better than one Two “extension” facilities in 1980s (Scottsdale,Jacksonville)  Mayo Graduate School of Medicine – one of largest graduate education centers

Brand Value Chain & Testing  Evaluating the Mayo Clinic  Worldwide leader in patient care, research and education  Renowned for world class specialty care  Earned a reputation as world class specialty care  Most medical staff participate in research  1950 Nobel Prize winners, Drs Kendall and Hench discovered Cortisone

Brand Value Chain & Testing  Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies Value Stages

Marketing Program Investment -Product -Communication -Trade -Employee -Other

Customer Mindset -Awareness -Associations -Attitudes -Attachment -Activity

Market

Shareholder

Performance

Value

-Price s -Price Elasticities -Market Share -Expansion Success -Cost Structures -Profitability

-Stock Price -P/E Ratio -Market Capitalization

Brand Value Chain & Testing  Evaluating the Mayo Clinic ‘96 Brand Equity Study  Awareness 84.3%, 90+% among 45+  Specialty ranking Top ranked at 15.4% (next at 5.3%) “..go anywhere in US for serious condition which required highly specialized care..”  Strongest Brand Associations 1) Scientific Research, 2) Cancer Treatment, 3) Cardiac Care

Brand Value Chain & Testing  Evaluating the Mayo Clinic ‘96 Brand Equity Study  Associations (Thoughts & Feelings)     

Integrity (longevity, heritage, wisdom of staff, trust in institution), Leadership (modernity, quality, international prestige) Professionalism (staff held high standards, were intellectually sophisticated and efficient) Commitment to health & healing (reputation for medical discoveries, preventative medicine, tangible results) Exclusivity

 No Negative Associations

Brand Value Chain & Testing  Evaluating the Mayo Clinic ‘96 Brand Equity Study  Product Perception ISSUE  Outside Midwest perception of “only for rich/famous”  Known for Tertiary Care (Not primary family care)  Thus, “not like me”

Brand Value Chain & Testing  Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies Value Stages

Marketing Program Investment

Multipliers

Customer Mindset

Program Quality -Clarity -Relevance -Distinctiveness -Consistency

Market

Shareholder

Performance

Value

Marketplace Conditions -Competitive reactions -Channel -Customer size & Profile

Investor Sentiment -Market Dynamics -Growth -Risk Profile -Brand Contributions

Brand Value Chain & Testing  Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies Value Stages

Marketing Program Investment -Product -Communication -Trade -Employee -Other

Customer Mindset -Awareness -Associations -Attitudes -Attachment -Activity

Market

Shareholder

Performance

Value

-Price s -Price Elasticities -Market Share -Expansion Success -Cost Structures -Profitability

-Stock Price -P/E Ratio -Market Capitalization

Brand Value Chain & Testing  Evaluating the Mayo Clinic ‘96 Brand Equity Study  Communication  Word of Mouth is influential in selecting specialty care  1/3 know at least one Mayo patient

Brand Value Chain & Testing  Evaluating the Mayo Clinic ‘96 Brand Equity Study CONCLUSIONS  Mayo’s Brand Equity is Powerful and Precious  As perceived by patients and consumers, Mayo’s Essence:    

Excellence The best medical, personal and technical expertise in patient care and education Care Comionate patient care and education resulting in physical, mental and emotional well-being Cooperation Care and education in cooperative and inclusive relationships among colleagues and with the patient, the patient, the patient’s family and consumers Enlightenment (Wisdom) Commitment to pioneering knowledge, insight, and truth through research and education

Brand Value Chain & Testing  Evaluating the Mayo Clinic ‘96 Brand Equity Study CONCLUSIONS  Mayo’s Brand Equity is Powerful and Precious  “By living out these standards fully and consistently, the Mayo clinic had engendered in patients and consumers a sense of confidence, safety, hope and serenity”

Brand Development Consumer Driven Marketing Cycle Succeed And Improve

Map the Marketspace Select Most Valuable Customers

Assess Performance

Actions

Strategies

Execute the Tactical Plan

Tactics

Choose a Winning Positioning •Brand saturation •High Cost

Define Performance Measures

Build Operational Capabilities

Create the Tactical Plan Mark Kerback, Kerback & Company

Brand Value Chain & Testing  Evaluating the Mayo Clinic ‘96 Brand Equity Study CONCLUSIONS  A Satisfied national patient base is VITAL to maintaining preference  Vital to developing guidelines that protected the brand  1999 created “Office of Brand Management”     

Responsible for the protection & enhancement of the Mayo Clinic brand (+ monitoring) Developing Brand Management Guidelines & a Positioning statement Implementing a Branding System (include education) Build awareness of Brand Management within the organization Research extension opportunities & risks

Brand Value Chain & Testing  Evaluating the Mayo Clinic ‘96 Brand Equity Study CONCLUSIONS  Example of Brand Management Guidelines:  Each new/existing Mayo Clinic branded product, service or business relationship meets 4 criteria:    

Using name must be owned by Mayo or under full control Use to solely assure success of service/product not appropriate Not to be used in a manner that trivalizes the name/institution Not shared or sold

Brand Value Chain & Testing  Get to the Consumer Insight/Core Value by  Laddering up to it  Keep asking “WHY”, “WHY”, “WHY”

 Is Mayo Resonating with Consumers Central Beliefs/Core Values?  What Consumer Insight might they center their equity on?

Strategic Brand Management FINAL GROUP CASE STUDY PROJECT Due November 15th

Strategic Brand Management New Brand Development Project (due WK10)  Work in Four Groups of 2 and select from product categories provided  Develop a new brand marketing plan in an existing category (Use framework attached)  Develop the key insight, concept & positioning  Ensure the following are ALSO included:      

Your VISION Launch Rationale Business analysis (Competitive and market analysis, SWOT etc) Target audience, Key Competitive insights and Core Values (use CBBE Pyramid) Projected share and financials (ed, P&L examples to be provided) Proposed Marketing Objectives, Strategies and Tactics

Strategic Brand Management RECOMMENDED TIMETABLE  Select groups and categories Oct18th (data up Oct 20th); assign group tasks; conduct research searches  Oct 25th: Out line marketing plan to share with the group;  Nov 1st: Having reviewed available data; hypothesize financials, consumer insights, positioning and concepts (can turn in roughs to prof for )  Nov 8th: Draft marketing plan deck and begin conversion to power point presentation  Nov 15th: Turn in completed plan and conduct presentations. FINISHED PRODUCT:  One 10-15 Minute presentation (docked a grade if over 15 minutes!!)  One marketing plan document (main text to be NO MORE than 5 pages.. Appendix with charts, graphs, data and research encouraged)  Visuals encouraged.

Your Marketing Plan  Purpose  Define your core objectives, strategies and tactics in concise summary  Management selling tool for brand investment  Document and sell or acknowledge results  Provide solid, focused direction to corporation and brand  Define Brand evaluation objectives  Live Working Document

Measuring Brand Equity Objective:  To guarantee assets/liabilities are nurtured and managed (loyalty, awareness, perceived quality, propriety brand assets)  Develop Focused Master Plan  Create Long term Strategic Orientation

Analysis & Long Term Strategy

Brand Marketing Process Measure Brand Equity Financial Health

Business Analysis

Marketing Mix

Market & Competitive Trends Consumer Insights

SWOTs

Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role

Establish Positioning Concept

Three Year and ANNUAL Objectives

Annual Plan & Execution

What do I want to Accomplish Objectives Should be S.M.A.R.T

ANNUAL STRATEGIES How will the objectives be achieved?

Marketing Plan Execution Market Research

Physical Product

Functional Objectives & Strategies And Tactical Plan

Consumer & Retailer Promo Public Relations

Package Pricing Advertising

Media

Brand Marketing Process AnalysisTerm & LongStrategy Term Strategy Analysis & Long

Measure Brand Equity Financial Health

Marketing Mix

Business Analysis

Market & Competitive Trends Consumer Insights

SWOTs

Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role

Establish Positioning Concept

Establish Positioning Concept

Brand Marketing Process Three Year and ANNUAL Objectives

Annual Plan & Execution

What do I want to Accomplish Objectives Should be S.M.A.R.T

ANNUAL STRATEGIES How will the objectives be achieved?

Marketing Plan Execution Market Research Consumer & Retailer Promo Public Relations

Physical Product

Functional Objectives & Strategies And Tactical Plan

Package Pricing

Advertising Media

Analysis & Long Term Strategy

Brand Marketing Process Measure Brand Equity Financial Health

Business Analysis

Marketing Mix

Market & Competitive Trends Consumer Insights

SWOTs

Strategic Implications & Strategy Development Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role

Establish Positioning Concept

Three Year and ANNUAL Objectives

Annual Plan & Execution

What do I want to Accomplish Objectives Should be S.M.A.R.T

ANNUAL STRATEGIES How will the objectives be achieved?

Marketing Plan Execution Market Research

Physical Product

Functional Objectives & Strategies And Tactical Plan

Consumer & Retailer Promo Public Relations

Package Pricing Advertising

Media

Measuring Brand Equity Market Trends Checklist 

Market Conditions

•Household Pentration •Seasonality •Regionality (CDI/BDI)

Retail Conditions Volume & Share •Industry definition & served market •Category Size & growth rates •Category Segmentation, trends, importance to category •Share of market by brand & by segment

Consumer Conditions •Substitute products •Changes in tastes/attitudes/needs

•Channels of Distribution •Product Sourcing/availability •Importance of the category to the retailer •Retailer focus on private label •Retailer influence over category marketing activity

Government Conditions •Regulations & Reqs. •Legislative issues

Measuring Brand Equity  Assessing Competitive Trends Competitor Identification • Key direct competitors • Competitive Scope: • Regional/National/Global

Competitor Focus

•Importance in portfolio •Level of product activity •Level of marketing focus •Financial resources

Competitive Financials

Advantage

Competitive Strategy • Overall mission/priorities • Target Audience • Brand Turf/Positioning • Class of Trade (COT) importance

•P&L analysis •Cost Structure •Spending •Profitability

Brand Value Chain & Testing  Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies Value Stages

Marketing Program Investment -Product -Communication -Trade -Employee -Other

Customer Mindset -Awareness -Associations -Attitudes -Attachment -Activity

Market

Shareholder

Performance

Value

-Price s -Price Elasticities -Market Share -Expansion Success -Cost Structures -Profitability

-Stock Price -P/E Ratio -Market Capitalization

Brand Value Chain & Testing  Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies Value Stages

Marketing Program Investment

Multipliers

Customer Mindset

Program Quality -Clarity -Relevance -Distinctiveness -Consistency

Market

Shareholder

Performance

Value

Marketplace Conditions -Competitive reactions -Channel -Customer size & Profile

Investor Sentiment -Market Dynamics -Growth -Risk Profile -Brand Contributions

Measuring Brand Equity SWOT  Purpose: to guide thinking and help distill the key issues and opportunities facing the Brand AND the category  Can be done in competitive analysis STRENGTH

WEAKNESS

Inherent source of competitive advantage within the Brand (of genuine relevance to the consumer)

Inherent cause of competitive disadvantage within the Brand (of genuine importance to consumer)

INTERNAL to the brand Caused by the inherent nature of the Brand or our management of it

Measuring Brand Equity SWOT  Purpose: to guide thinking and help distill the key issues and opportunities facing the Brand AND the category  Can be done in competitive analysis EXTERNAL to the brand Markets, competitors, retail, social trends etc

OPPORTUNITY

THREAT

Unsatisfied or poorly satisfied need in the marketplace which our company can perform profitability

Potential problem from external source which could undermine our Brand’s competitive position if not addressed.

THIS is Where the Insight Lives

ConsumerBrand Resonance Consumer Judgments

Brand Performance

Consumer Acceptance Cycle

Consumer-Based Brand Equity Pyramid

Consumer Feelings Brand Imagery

Brand Salience

4 Intense, Active Loyalty

3 Positive Accessible Reactions

2 Points of Difference

1 Deep Broad Brand Awareness

Consumer-Based Brand Equity Pyramid

Resonance Judgments Performance

Loyalty Attachment Community Engagement Quality Credibility Consideration Superiority

Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency, & Empathy Style and Design; Price

Warmth, Fun Excitement, Security, Social Approval, Self-Respect

4 Brand Relationships (WHAT About You AND ME?)

Feelings

Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences

Category Identification Needs Satisfied

Salience

3 Brand Response (WHAT About You?)

Imagery 2 Brand Meaning (WHAT Are You?)

1 Brand Identity (WHO Are You?)

Insight to Positioning State the thought you wish to implant in your target’s mind:  TO (core target audience), (Brand Name),  IS THE (frame of reference) Power  THAT (owned benefit) Positioning LINKS to  BECAUSE ( or reason to believe) Consumer Insight

Introducing (Brand Name) Succinct insight driven benefits (benefit statement)

 Consumer Insight statement (AHA not fact).  Introducing New Brand. What it does (relevant core benefit to consumer). Reason to believe (how/why it does what it does).  Reprise of positioning in closing tag.

Your Marketing Plan  Fundamental Statement of Purpose  What do I want to do (grow X% to $$)  Objectives must be SMART     

Specific Measurable Appropriate Realistic Timebound

 Long Term and Short term

Brand Development Consumer Driven Marketing Cycle Consumer Insight: Singularly focused need, desire or want Strategies: Fact Based choices on who, how and why Tactics: Activities/capabilities –what, where and when

Actions

Strategies •

Brand Tactics saturation •High Cost

Actions: Execution, , assessment, and improvement

Mark Kerback, Kerback & Company

YOUR MARKETING PLAN  What is your Big Inspiring Vision?  How will your consumer insight translate across ALL elements of your plan?  Positioning  Brand Essence  Strategies and Tactics

 WHO is your target REALLY (pscyh, demo)  In your SWOT: What is going on competitively and in the Market Place?…  WHY should I invest in your launch????????