Brand Management

Business 6210, Winter 2008

Deanne Fisher
Objectives
• To understand that a brand is more than a
product
• To examine the five steps in building a brand
• To consider the five strategic brand decisions
that affect how marcoms are used
• To understand how IMC build relationships
that create brand value
• To examine the anatomy of profitable brand
relationships
• Cadbury Megabrand Case
A Brand Is More than a Product
• Brands are perceptions
– Integrated bundle of information and experiences
– Identifies product and maker
– Has associations and image
A Brand Is More than a Product
• Brands transform products
– Consumers use tangible attributes to decide
whether two products are different
– Consumers use intangible attributes to decide how
two products are different
• Quality and value
• Brand image
• Perceptions of brand users
– Intangible attributes
• Difficult for competitors to copy
• More likely to involve consumers emotionally
A Brand Is More than a Product
• Brand promise
– Brand is a virtual contract between a company and
a customer
– Failure to deliver on a promise  dissatisfaction
– Customer expectations must be managed
A Brand Is More than a Product
• Brand equity
– Intangible value of a company beyond its physical
assets
• Premium pricing method
• Royalty method
– Elements
• Brand-name awareness
• Brand associations
• Perceived quality
• Proprietary assets (patents, trademarks, etc.)
• Brand loyalty
How Brands Are Built
• Five steps
– Select a name and symbol
– Create awareness and brand identity
– Position the brand
– Create a brand image
– Create trust
Choosing a Brand Name & Symbol
• Choosing a brand name
– Benefit description
– Association
– Distinction
– Pronounceability
• Choosing a brand symbol
– Logo
• Visual elements
• Audio elements
– Trademarks
Branding Strategies
• Aim: To ensure that the image and perception of
a brand are maximized
• Family Brands
• Brand extensions
• Cooperative Branding
• Co-Branding
• Ingredient branding
• Private Brands
Stakeholders

Customers

Employees

Government, communities, financial & investor community,

special interest groups, suppliers,distribution channel
members, the media, etc.
Stakeholder Overlap
Customers

Media Community

Suppliers Employees

Shareholders
Brand Relationships
• Acquisition versus retention
• Trust
– Satisfaction
– Consistency
– Accessibility
– Responsiveness
– Commitment
– Affinity
– Liking
Brand Relationships
• Intensity

Number of relationships
Relationship intensity
– Awareness
– Identity
– Connected
– Community
– Advocacy
• Managing expectations
– Relationship ≠ exploitation
– Relationship = win-win
Brand Relationships
• Loyalty
– Share-of-wallet
– Heavy users
• Pareto Rule: 80/20
Profitable Brand Relationships
• Impact on costs
– Costs less to sell to current customers
– Relationships amortize costs of acquisition
– Loyal customers are brand advocates, reducing
marcom costs
– Satisfied customers take less handholding
• Impact on sales and profits
– Loyal customers buy more
– Loyalty increases long-term customer value
– Decreasing defections increase sales
– Disappointed customers spread negative w.o.m.
Benefits to Customers
of Brand Relationships
• Less risk
• Fewer decisions
• Fewer switching costs
• Greater buying efficiency
• Increased association
IMC Builds the Relationships that
Build the Brand
• IMC can build trust
• IMC is communication
– Affects both the quantity and quality of relationships
• Between the brand and customers
• Between the brand and other stakeholders
Summary
• A brand is a special relationship
• Brand value is determined by brand
relationships
• Brands are built in steps
• There are several brand strategies
• Brand relationships are the net sum of
stakeholder support
• Brand relationships can be analyzed in terms of
trust, intensity, expectation gaps, and loyalty
Cadbury Case
Cadbury: The Brand
• Leader since setting up in Ireland >70 years ago
• Undisputed market leader with a 48% SOM

The Cadbury Family Range

Cadbury Case
• The Cadbury Dairy Milk brand accounts for 33%
of Cadbury’s total chocolate sales
• Number one confectionery brand in the market
• Cadbury made a strategic marketing decision:
– to leverage the value of the Dairy Milk brand (i.e. optimize
the market potential of the brand by elevating it to a
Megabrand or range brand
• Cadbury wished for The Cadbury Dairy Milk
brand to be stretched to become its own family
brand.
Cadbury Case
• Scope of the Megabrand
– products chosen for inclusion based on compatibility
with the brand’s identity. e.g. the moulded (blocks)
chocolate brands were included as they were
perceived as variants of Dairy Milk.

• The core proposition of the new Dairy Milk

Megabrand could be described as:
– delivering recipes for life’s upbeat occasions - i.e. no matter what
your humour or the occasion, Cadbury Dairy Milk will provide the
perfect accompaniment’!
Cadbury Case
• Two products in the Cadbury range created a
dilemma:
– Wispa and Caramel.
– Both were standalone products with distinctive identities.
– Both had a loyal consumer base which should not be
abandoned

• To incorporate these products into the Dairy

Milk range called for a fresh strategy.
Cadbury Case
• Identify:
– Family Brand Names
– Individual Brand Names
– Combination Brand Names
• How would you visually identify Cadbury
Dairy Milk as a Megabrand?
• How would you incorporate Wispa and
Caramel?
Cadbury Case
• Cadbury uses a combination brand strategy.
• The family brand, Cadbury is linked with its
famous sub-brands, i.e. Cadbury Crème Egg
• The family brand identity is firstly
communicated by the packaging with the
Cadbury corporate purple colour and the
distinctive Cadbury script logo.
• The sub brand is then distinguished by its
own individual script.
 Cadbury Case
CDM brings new vibrant look!
•Swirls in new logo drawn on •Increased Prominence of
Cadbury ‘milk goodness’ Family Brand
cues. •Use of Dairy Milk
•Cadbury signature enlarged Umbrella
= stamp of quality. •Colour Coding for
•Dairy Milk brand Differentiation
endorsement across all •Maintain ‘Glass and Half’
variants. •Maintain ‘Purpilisation’
•Colour coding ensures
maximum impact and
product differentiation.
Cadbury Case
Range Refreshment – Summary
• Transitions

• New Products
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