BRANDING STRATEGIES MANAGING BRANDS OVER TIME CHAPTER 13

BRANDING STRATEGIES MANAGING BRANDS OVER TIME CHAPTER 13 Part 1: Introducing the Strategy of Building and Sustaining Brand Meaning 1. Reinforce 2. Restore 3. Reinvent Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu

Customer Needs Change Markets Shift Services Replace Products Competition Expands Brand Meaning Fades THE IMPORTANCE OF MANAGING BRANDS OVER TIME

WHERE ARE THEY NOW ?

Create Reinforce Revitalize BRAND LIFE CYCLE CONCEPT Reinvent

Reinvent • Customer Experience & Value • Brand Meaning & Direction Revitalize • Credibility & Trust • Competitive Advantage Reinforce • Brand Consistency • Brand Investment Create • Discovery – Who Are You • Positioning – What Is Your Story BRANDS REQUIRE DIFFERENT STRATEGIES AT EACH LIFE CYCLE

Quality Place Imagery Price Trust BRAND CREATION INITIALLY BRANDS ARE CREATED WITH KEY ASSOCIATIONS THAT DEFINE THEIR IMAGE AND POSITION IN A MARKET

Exceptional Customer Nostalgia Quality Service Memories Availability and Convenience Trusted Brand Character or Endorser Affordability EXPLORING BRAND CONSISTENCY CLASS BRAINSTORM –IDENTIFYING BRANDS WITH STRONG POSITIVE PERCEPTIONS

POD Channels Iconic Products Charcters IT IS IMPORTANT TO UNDERSTAND THE BASIS OF YOUR ORIGINAL BRAND CREATION STRENGTHS

http: //canadacoaster. com/Large. Custom. Coaster. Shapes. php OVER TIME BRAND MEANING NEEDS TO BE REINFORCED

1. What products does the brand represent ? 2. What benefits does it provide? 3. What makes the brand superior ? 4. What positive brand associations exist? THE GOAL OF REINFORCEMENT IS TO MAINTAIN MARKET AWARENESS OF A BRAND IN TERMS OF ITS PRODUCTS, ATTRIBUTES AND ADVANTAGES

https: //lindsaydimc. wordpress. com/2013/09/0 6/32/ 1. Quality levels 2. Messages / Promise 3. Iconic Characters 4. Logo’s / Imagery 5. Key Experiences REINFORCEMENT STRATEGY 1 MAINTAIN CONSISTENCY

BRAND CONSISTENCY – WHAT DO YOU KEEP Arches Iconic • • Golden Gerber Baby Brand • Wendy Elements Channels Investment • • • IPhone Buick Magic Kingdom Flagship Brand Certain Associations You Need To Maintain 9 BRANDING STRATEGY of 11 Product Category • • • Fast Food Family Fun Breakfast Food Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu

BRAND REINFORCEMENT IS A BALANCING ACT Nostalgia Shifts in Market Demographics Market Loyalty New Competitors Consistency Positive Past Associations Forces That Support Reinforcing Past Brand Associations Secondary Competition Forces That Support the Need For Changes in Brand Identity 2 BRANDING STRATEGY Change Broader Context Of Brand Use of 11 Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu

BRAND MESSAGING Put a Little Weekend in Your Week Modifying the Message Must Follow a Logical Path The Night Belongs Some Days To Michelob Were Made For Michelob Where You’re Going It’s Michelob Ultra Holiday

1. Original Products 2. Ingredients 3. Original Ads 4. Packaging 5. Landmarks http: //logos. wikia. com/wiki/Kraft_M acaroni_and_Cheese REINFORCEMENT STRATEGY 2 RETRO BRANDING THE POWER OF “NOSTALGIA”

1. Segments Differ 2. Other Competition 3. Category Migration 4. Price Hopping http: //www. livingrichwithcoupon s. com/2015/01/campbells-skilletsauces-0 -59 -shoprite. html http: //www. warhol. org/education/reso urceslessons/Campbell%E 2%80%99 s. Soup--Ode-to-Food/ REINFORCEMENT STRATEGY 2 RETRO BRANDING DOES NOT ALWAYS WORK WHEN EXTENDING TO BRAND EXTENSIONS http: //www. cvs. com/shop/household-grocery/food-snacks/soup/campbell-schunky-chili-with-beans-roadhouse-skuid-322106

1. Advertising 2. Co-Branding 3. Channels 4. Promotions 5. New Products http: //brandchannel. com/2013/09/25/wonder -bread-returns-to-store-shelves-with-newowner-old-look/ REINFORCEMENT STRATEGY 3 BRAND FORTIFICATION “REINVEST” TO REINFORCE

Georgia-based baking giant Flowers announced that it has been putting Wonder back on store shelves since Monday along with other former Hostess -owned brands that it acquired in February, along with 20 baking plants, for $355 million. “We went into the archives and pulled packaging designs from earlier days, ” said Keith Aldredge, Flowers’ CMO, according to Food. Business. News. com. “We’re bringing back the classic Wonder… logos and colors. We hope the nostalgic look creates happy memories for many and attracts new consumers with its retro appeal. ” http: //brandchannel. com/2013/09/25/wonder -bread-returns-to-store-shelves-with-newowner-old-look/ Wonder Bread Returns to Store Shelves with New Owner, Old Look Posted September 25, 2013 by Dale Buss

Brand Fortify Investing in an Existing Brand Occurs on 3 Levels and Can Extend the Life Of the Brand Company Image BMW Delta Advertising Faucet LL Bean Product Design Timex GPS Coldplay Gillette Fusion Wonder Toyota Prius 8 BRANDING STRATEGY of 11 Bread Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu

Fortifying is a strategy to take • Secondary Branding • Price Premiums • Brand Extensions • Cost Reduction FORTIFY VERSUS LEVERAGE

Disney Mc. Donald’s Expand Into New Uses • • • Same Segments Same Category Similar Channels • • • Google Pepsi New Product Category Diversified Same Segments Same Core Value Same Channels How do you know when you have extended the original brand too far? 9 BRANDING STRATEGY of 11 • • • Core customers are unfamiliar Product focus is different Brand association is weak Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu

• Once popular for Tennis wear • Became a discount brand • In the 1980’s after General • Mills acquired the company • 2002 relaunched new styles • Of fashion forward http: //www. coolchaser. com/graphics/tag /Lacoste • Sold exclusively in Boutique stores REVITALIZING BRANDS MAKING A BRAND COMEBACK

• Mountain Dew Code Red • Febreeze Air Fresheners • Arm & Hammer Laundry • 2002 relaunched new styles • Of fashion forward • http: //www. coolchaser. com/graphics/tag /Lacoste Sold exclusively in Boutique stores REVITALIZING BRANDS STRATEGY 1 EXPAND AWARENESS TO NEW BRAND CATEGORIES

• Coach defined a new brand line • Poppy handbags • Targeted at younger females • Priced at $260 • For 14 -20 year olds REVITALIZING BRANDS STRATEGY 2 DEFINE A NEW

• Restore Trust after a problem • Leverage Transparency • Create a CSR • Embrace Sustainability http: //www. treehugger. com/style/niketalks-trash-with-shoe-made-frommanufacturing-waste. html REVITALIZING BRANDS STRATEGY 3 UPGRADE YOUR

La. Coste Focus the Channel Burberr y Sub-Brand Broaden the Portfolio Younger Segment Lacoste Live 10 of 11 BRANDING STRATEGY Refresh Advertisin g Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu

Mountain Dew Harley Attract New Customers Retain Existing Customers Create a Community Code Red MDX License Image 10 of 11 BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu

Coach Change frame of use Mc. Donald’s Reposition Brand Different Bag Options Healthier Food Choices Fill Usage Voids 10 of 11 BRANDING STRATEGY Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu

RESTORING BRAND TRUST

THE CHANGING LANDSCAPE OF BRAND TRANSPARENCY

WHEN IS IT TIME TO REINVENT

WHEN IS IT TIME TO REINVENT Needs Diverge Technology Evolves Markets Disappear Markets Shift 9 BRANDING STRATEGY of 11 Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu

Current TV Salon. com Suzuki Talbots RIM Gone in 2013 Back Again SBarro Lego Marvel Old Spice

WHEN SHOULD YOU EVOLVE Technology Markets Evolves Diverge Markets Disappear You Change 9 BRANDING STRATEGY of 11 Markets Emerge Instructor: Thomas Murphy P. 978_760_1388/ Tmurphy@clarku. edu

BRANDING PRINCIPLE – REINVENTION THE GOAL OF REINVENTION SHOULD ALWAYS BE …. . TO FIND A BETTER PATH FOR THE FUTURE

Brand Direction User Benefit Evolve DIFFERENT PATHS TO REINVENTION

WHEN IS IT TIME TO REINVEN ? Technology Changes Playing Field ? Your Brand Becomes Obsolete Markets Emerge or Diverge ?

WHEN IS IT TIME TO REINVEN Dell Postal Service Cadillac Technology Changes Playing Field Your Brand Becomes Obsolete Nokia Wearables E-Zines Markets Emerge or Diverge Bamboo Clothing Amazon Prime Capella University

AMERICAN EXPRESS CEO REINVENT WITH THE IDEA OF PUTTING YOUR CURRENT COMPANY OUT OF BUSINESS”

How will you grow this company? The area of focus for us is the consumer proposition and understanding the differences between what a Brazilian consumer needs versus a Russian consumer, for example. It’s about making sure that we are looking at the representative experience, asking, . What do we need to do to be competitive in a particular market so that she’s earning? Then it’s about getting the geographies right so that we’re investing in the highest potential geographies and dealing with geographies that are more of a drain on the business. AVON’S NEW CEO DISCUSSES CHANGES TO THEIR BRAND STRATEGY FORBES MAY 2012 Sheri Mc. Coy

RECREATE PRODUCT EXPERIENCE THROUGH INNOVATION

WHEN YOUR LEAD CHARACTER BECOMES SCAREY AND CREEPY

CHANGE YOUR IMAGE ENTIRELY

Burberry's Secrets to Successful Brand Reinvention Recent headlines highlight the plight of established, well-known brands as they struggle to evolve, and the less sensational retail success stories are second-page news. There’s one story that caught my eye, not just because it’s a positive alternative to front-page news, but because it provides an exceptional example of an executive using great leadership to turn a company around. The company story that deserves highlighting is that of Burberry. http: //www. forbes. com/sites/johnkotter/2013/02/26/burberryssecrets-to-successful-brand-reinvention/

Burberry's Secrets to Successful Brand Reinvention Regain Focus When Angela Ahrendts took the helm as CEO of Burberry in 2006, she asked one question: Where were the trench coats? Burberry’s external focus on the competitive luxury clothing and leather goods space had led it to neglect the company’s core strength – its iconic outerwear. In fact, other brands had begun to delve into Burberry’s sanctum. Organizations that lack focus commonly concentrate on the competition rather than nurturing their areas of strength. A historical lack of focus had left Burberry vulnerable to losing the lead in its category to newcomers. Ahrendts began a campaign to align the company around the iconic trench coat that had made Burberry famous. Over the next six years, it took factory closures, layoffs, leadership shake-ups, and a re-invention of the brand to make this happen http: //www. forbes. com/sites/johnkotter/2013/02/26/burberrys-secrets-to-successful-brandreinvention/

Burberry's Secrets to Successful Brand Reinvention Stand by Your Vision As an American from the midwest, critics questioned Ahrendts’ ability to understand an established British brand. She faced opposition from outside as well as inside the company. But Ahrendts did not veer from her course. Some CEOs in this situation dangerously attempt to appease their critics. When a CEO bends to external forces (shareholders and boards of directors), they alleviate the pressures of today only to trade them for the long-term success of the vision – and subsequently the longevity of the company. She established a clear vision, she aligned the leadership team and the organization around it, and she did what it took to deliver on the vision. http: //www. forbes. com/sites/johnkotter/2013/02/26/burberrys-secrets-to-successful-brandreinvention/

Burberry's Secrets to Successful Brand Reinvention Stand by Yo Share, Engage, and Involve It took not just Ahrendts, but all of Burberry to make this turnaround happen. She painted a clear picture of the opportunity for the company. She ensured everyone understood the vision. Then, she engaged the organization in helping to accomplish it. This is very unusual. Ask the sales clerk at many large clothing retailers today what his or her employer’s long-term vision is and you’ll most likely be met with silence – this is one reason why those companies are failing. Ahrendts shared her vision with the entire company. She retrained her sales people by bringing multi-media reeducation programs to each store. But she didn’t just direct them how to sell, she shared the “why” – the trench coat is unique to Burberry, it’s core to the brand, and the commission on one trench coat is higher than that of ten polo shirts. She empowered the sales staff to become a powerful force of brand advocates.

WHEN NOBODY KNOWS YOUR NAME

CHANGE THE CONVERSATION

MAKE IT SEEM PERSONAL

It had been several months since he'd wrested control of the company he founded 30 years ago in his college dorm from a ferocious corporate raider. And the buoyant Dell just received word his iconic company was expecting its sixth straight quarter of growth in PC market share Now comes the hard part, some analysts suggest: reinventing a company that made its name — and fortune — selling personal computers in a world increasingly beholden to smartphones and tablets. The Round Rock, Texas-based Dell also intends to capitalize on the ubiquitous Internet of Things, sensor-enabled devices and wearable devices that are expected to number in the tens of billions within a few years. "It's an exciting opportunity, " says Dell, 49. "Anything that creates more nodes and data means potentially selling more servers, storage and networking gear. " But the company is drawing the line at building its own line of wearable devices, he says. MICHAEL DELL NOW REINVENTING PC STALWART JON SWARTZ, USA TODAY JUNE 9, 2014

MICHAEL DELL NOW REINVENTING PC STALWART JON SWARTZ, USA TODAY JUNE 9, 2014 But the company is drawing the line at building its own line of wearable devices, he says. "The world got enamored with smartphones and tablets, " Dell says. "But what's interesting is those devices don't do everything that needs to be done. Three-D printing, virtual-reality computing, robotics are all controlled by PCs. Productivity is grounded in the PC. “ "Where does the computing power come from? " Dell says, leaning forward. "How would you run USA TODAY without PCs? Run a hospital without PCs? " "People don't want products, they want solutions, " Dell says

The rub, however, is selling the company's broader product lineup and services to longtime customers weaned on Dell PCs and servers, Eastwood says. The new Dell also "needs to work much harder to get its message out and change customer perceptions regarding its capabilities as an enterprisesolutions provider, " Eastwood says. "This will take additional advertising and marketing effort at the corporate level. " "That takes both deeper and different relationships with customers, " he says. "Many of Dell's sales professionals will not be able to effectively make this transition. “ MICHAEL DELL NOW REINVENTING PC STALWART JON SWARTZ, USA TODAY JUNE 9, 2014

Different Channel New Markets CLASS BRAINSTORM HULU REINVENTION Different Products

Different Channel New Markets CLASS BRAINSTORM NOKIA REINVENTION Different Products