MM 6016 BRANDING AND MARKETING COMMUNICATION BRAND AUDIT

MM 6016 BRANDING AND MARKETING COMMUNICATION BRAND AUDIT & BRAND RESEARCH Master of Business Administration School of Business and Management Institut Teknologi Bandung 1

Definition • Keller (2008, p. 126): “Brand audit is a comprehensive examination of a brand to discover its sources of brand equity” 2

Concept of Brand Audit • • • External-oriented Customer-focused Assess the health of the brand Uncover the sources of brand equity Suggest ways to improve and leverage the brand equity 3

Brand Audit Perspective • A brand audit reguires understanding sources of brand equity from the perspective of both the firm and the consumer. • The Firm perspective It is necessary to understand exactly what product and services are currently being offered to the consumer and how they are being marketed and branded • The Consumer perspective It is necessary to dig deeply in their minds and tap perceptions and beliefs to uncover the meaning of brands and products 4

Brand Audit Steps Keller (2008): 1. Brand Inventory provide a current, comprehensive profile of how all the products and services sold by a company are marketed and branded Brand inventory analysis includes the following descriptions: 1. 2. The names, logos, symbols, characteristic, packaging, slogans, or other trademark used The inherent product attributes or historical characteristics of the brand pricing, communications, distribution policies, and any other relevant marketing activity related to the brand 5

Brand Audit Steps 2. Brand Exploratory provide detailed information about what consumers think of the brand. Brand exploratory is reserach acitivity designed to identify potential sources of brand equity. Activities that useful for brand exploratory are : 1. Reviewing past studies 2. Interviewing relevant personnel to get some insight. 3. Do qualitative and quantitave research for the wide range 6

By Keller Based on above figure, The data in brand inventory, will help brand flush out the bottom left quadrant and tell the position of brand are claiming out there in the world The data in brand exploratory, will help brand fill out the top two slices of the piece, telling the brand position by customers currently think and what 7 customer value for the brand

MM 6016 Branding and Marketing Communication Brand Audit Worksheets 8

Types of Worksheets • • • Market Analysis Target Audience Competitive Analysis Point of Differentiation (POD) Brand Traits Brand Positioning Brand Message Brand Credentials Marketing Communication Brand Measurement 9

180 MM subscribers, 9 million web users (53% between 18 and 27), +9. 3% growth yoy, QWERTY market Internet penetration doubled in the past 4 years (45% mail, 45% social media & chat, 10% browsing) Applications on smartphones (ala I-Phone) Community formation (BB communities) XXX Million USD per year Practical, useful, worthwhile, easy to get & cheap applications on smartphones 10

Source of data: Cluster Analysis Media Segmentation Data In Depth Interviews Focus Group Discussion 11

Male 15 -25 yo SEC A/B Live in top cities Techno savvy Progressive Want to be the best Female 15 -25 yo SEC A/B Live in top cities High mobility Design vs feature Social networking Function #1 5 MM people Electronics malls Certified dealers TV (main) Magazine Radio Mobile Social network TV (main) Magazine Mobile Social network 12

Nokia Blackberry IPhone 49% of cellphone category 86% of smartphone category Rp. 1. 5 (C class) -6 M 500 K users (+3000 per day) Rp. 4 -6 M 80 K users Rp. 6 -8 M 13

Result of the factors analysis! Result of Discriminant Analysis 14

NOKIA Trusted brand? User friendly? Blackberry Cheap internet connectivity Trend following Iphone Young, hip & cool Exclusivity Interesting Applications 15

Result of study on brand character association variables Brand Character that is in line with the brand strategy 16

Smart X Trendy Cool Efficient The Pioneer X A trusted friend 17

Source of data: Qualitative Assesment of Communication Assetss 18

Smart phones NOKIA Blackberry Iphone Touch/QWERTY, camera, Internet Sleek design User friendly interaction Internet connection (push email, Social networking, browsing) BB messaging Touch screen , Camera , Internet Unique & Free Applications Personal music organizer Only Nokia Human technology enables you to get more out of life. Real time, Instant Access & connectivity 19

Brand Message Worksheet Product : Brand : Target Audience: What the target thinks now: What we want them to think: Core brand message : The message that will change their behavior/perception RTB: The claim support/reason to believe that brand can deliver the message 20

Brand Message Worksheet Product : Smart Phone Brand : Nokia Target Audience: Young Urbanites What the target thinks now: What we want them to think: Nokia is the real people connector. Core brand message : RTB: 21

Historical tracking of brand’s good credentials 22

Based on media budget tracking. Should also be done on competitors as a comparison 23

Source of data: Retail Data Brand Health Scorecard Household Panel data 24

Brand Measurement Worksheet Sales (MM USD) Distribution Market Share Market Price Complaints Awareness Brand Preference Perceived Quality Perceived Value Perceived Difference Customer Satisfaction Purchase Intent Repurchase Intent Willingness to refer Loyalty Oct 09 121 89 9% 18999 10 80% 10% Nov 09 111 89 8. 9% 19001 12 80% 9% Dec 09 100 89 8. 6% 19201 9 80% 8% Jan-10 156 89 9. 2% 16700 9 84% 10. 5% Feb-10 188 90 9. 5% 15900 9 84% 11% 25

MM 6016 Branding and Marketing Communication Brand Research 26

Objectives 1. 2. 3. 4. 5. 6. 7. Assess customer perception about brand Assess brand health Assess brand competition Assess brand potentials Assess market opportunities Evaluate brand innovation Etc 27

Brand Research Steps Formulate Research Problems and Objectives Conduct Explorative Study Prepare Field Study Conduct Data Collection Conduct Data Analysis Conclusion and recommendation 28

Example: Sunsilk Co-Creation (1) Research Problem • Sunsilk launched the co-creation formulas for shampoo and hair care in 2009. • Objective: to strengthen Sunsilk images • Problem: To what extent perception toward Sunsilk Co-Creation influences the image of Sunsilk? Exploratory Study • Literature study on brand extension and consumer’s perceptions of consumer goods • In-depth interview with Sunslik Senior Brand Manager and FGD with Sunsilk target market. Objectives: to identify important attributes for survey research Field Study Design • Design questionnaire • Determine population • Design sampling method • Determine sample size • Design data collection and analysis Source: Anjani, A. H. , 2011. ANALYSING INFLUENCE OF SUNSILK CO-CREATION TOWARD PERCEPTION OF SUNSILK IN BANDUNG, Undergraduate Final Project, School of Business and Management, Institute of Technology Bandung 29

Example: Sunsilk Co-Creation (2) Questionnaire variables: • Sunsilk as a brand which give beautiful hair result • Sunsilk as a brand that solves various hair problems • Sunsilk as a brand that gives visible result to the users • Sunsilk as a trusted brand • Sunsilk as a modern brand • Sunsilk as a brand that makes its users feels confident with their hair Source: Anjani, A. H. , 2011. ANALYSING INFLUENCE OF SUNSILK CO-CREATION TOWARD PERCEPTION OF SUNSILK IN BANDUNG, Undergraduate Final Project, School of Business and Management, Institute of Technology Bandung 30

Example: Sunsilk Co-Creation (3) Respondent Data Source: Anjani, A. H. , 2011. ANALYSING INFLUENCE OF SUNSILK CO-CREATION TOWARD PERCEPTION OF SUNSILK IN BANDUNG, Undergraduate Final Project, School of Business and Management, Institute of Technology Bandung 31

Example: Sunsilk Co-Creation (4) Respondents’ Perceptions Source: Anjani, A. H. , 2011. ANALYSING INFLUENCE OF SUNSILK CO-CREATION TOWARD PERCEPTION OF SUNSILK IN BANDUNG, Undergraduate Final Project, School of Business and Management, Institute of Technology Bandung 32

Example: Sunsilk Co-Creation (5) T-Test of Mean Differences Source: Anjani, A. H. , 2011. ANALYSING INFLUENCE OF SUNSILK CO-CREATION TOWARD PERCEPTION OF SUNSILK IN BANDUNG, Undergraduate Final Project, School of Business and Management, Institute of Technology Bandung 33

Example: Sunsilk Co-Creation (6) Regression Analysis Y = 0. 938 + (0. 017 x X 1) + (0. 670 x X 2) Y X 1 X 2 = Overall perception of ability to solve all hair problems of Sunsilk after Co-Creation = Perception of Sunsilk =Perception of Sunsilk Co-Creation Source: Anjani, A. H. , 2011. ANALYSING INFLUENCE OF SUNSILK CO-CREATION TOWARD PERCEPTION OF SUNSILK IN BANDUNG, Undergraduate Final Project, School of Business and Management, Institute of Technology Bandung 34

Example: Sunsilk Co-Creation (7) Conclusions “Sunsilk Co-creation significantly affects respondents’ perceptions toward Sunsilk, the strongest one is about its ability to solve all hair problems” Recommendations • Sunsilk can maximize this opportunity by adding wellknown brand ingredient to its product or doing ingredient branding. • Adding a well known hair experts, preferably Indonesian hair expert, to be a ‘local ambassador’ of Sunsilk in Indonesia Source: Anjani, A. H. , 2011. ANALYSING INFLUENCE OF SUNSILK CO-CREATION TOWARD PERCEPTION OF SUNSILK IN BANDUNG, Undergraduate Final Project, School of Business and Management, Institute of Technology Bandung 35

Example: Rolex Brand Audit (Keller, 2008, p. 132 -137) • • History Brand Inventory – – – • Brand Exploratory – – – – • Product related attributes Rolex brand portfolio Communication, pricing and distribution Customer knowledge Sources of brand equity Ambassadors Sports & culture Philanthropy CBBE Counterfeiting: threat to equity Recommendations – – – Introduce new design Connect with female customers Attack the counterfeit industry Understand younger consumers Communicate long-term value 36

Example : Calvin Klein Brand Audit Brand inventory Target market : The consumer who is “ 14 to 50 years old and desires modern fashion forward products” Distribution : distributed within all tiers department store and reach all levels of consumers Advertising : advertising spans in 21 countries and reaches and estimated 98 million people globally. Product : have a variety of product classifications, (women’s sportwear, denim, menswear, underwear, men’s accessories and footwear, swimwear, fragrances, eyewear, footwear, home furnishings) Price : have the variying prices. Promotions : used brand ambasador Place : has stores in 130 territories outside US and 650 domestic retail locations Brand Mantra : “Sex, luxurious, minimal, classic, intimate and professional” 37

Brand Elements Name : “Calvin Klein” Symbols : “CK” Slogans : - “Between love and madness lies obsession” - “Nothing comes between me and my Calvin Klein” (for CK jeans) Sultry and neutral colors for the shopping bags 38

• Brand Exploratory - Consumers trusting of the brand - Consumers feel confident used the product - Consumers have perception that CK produces quality lasting products - Key word describe the brand by consumers : “ Sexy, Sophisticated, Casual, Hip, Daring and Distinct” Recommendation Calvin Klein for children is currently the weakest of the company brand extentions because it is still lacking in the profit. The brand must expand their products to include clothing that children living in household with alower income would wear. 39

MM 6016 Branding and Marketing Communication Mapping Brand Association 40

Strategic Brand Association Map Strategic brand association maps: developing brand insight Brian D. Till School of Business Administration, Loyola University, Chicago, Illinois, USA Daniel Baack Daniels College of Business, University of Denver, Colorado, USA Brian Waterman Research Solutions, LLC, St Louis, Missouri, US Journal of Product & Brand Management, 20/2 (2011) 92– 100 41

Features of Brand Association 1. 2. 3. 4. 5. Strength. Favorability/valence. Uniqueness. Relevance. Number. 42

Steps 1. Determine the competitive set. 2. Generate free associations. 3. Collect response latency data for strength of associations. 4. Measure uniqueness, relevance, and favorability of associations. 5. Construct the strategic brand association maps. 43

Source: Till et al. (2011), p. 96 44