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TitleCase Studies on Brand Management - Vol. I
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Page 1

Case Studies on

Brand Management – Vol. I

Icfai Books
# 71, Nagarjuna Hills, Punjagutta, Hyderabad – 500082

Edited by

Nusrath Jahan Maldar

Icfai Business School Case Development Centre

Page 2

Icfai Books
# 71, Nagarjuna Hills,

Punjagutta, Hyderabad – 500082

Andhra Pradesh, INDIA

Phone: 91 - 40 - 23435387/91, Fax: 91 - 40 - 23435386

e-mail: [email protected], [email protected]

Website: www.icfaipress.org/books, www.ibscdc.org

© 2007 The Institute of Chartered Financial Analysts of India. All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system, used in a
spreadsheet, or transmitted in any form or by any means – electronic, mechanical,
photocopying or otherwise – without prior permission in writing from The Institute of
Chartered Financial Analysts of India.

While every care has been taken to avoid errors and omissions, this book is being
sold on the condition and understanding that the information given in the book is
merely for reference and must not be taken as having authority of or being binding in
any way on the authors, editors, publisher or sellers.

Product or corporate names may be registered trademarks. These are used in the
book only for the purpose of identification and explanation, without intent to infringe.

Case studies are intended to be used as a basis for class discussion rather than to
illustrate either effective or ineffective handling of a management situation.

Copies of individual case studies are available for purchase from www.ibscdc.org

ISBN: 81-314-0696-2

Editorial Team: Priyanka Srivastava and Uma Ramaswamy

Visualiser: Ch. Yugandhar Rao

Designer: K. Sree Hari Rao

Page 3

AmorePacific: Creating Global Brands 1

Brand Extensions – The Marico Way 13

Branding – The Asian Dilemma 23

Branding Service: The McDonald’s Way 31

Burger King – Revitalizing the Brand 43

Cirque du Soleil: The Making of an Entertainment Brand 59

Corporate Co-Branding: Case of Yum! Brands, Inc. 71

Dainik Bhaskar: The Innovative Marketer 85

Dasani’s European Misadventure 93

Destination Dubai: Building a Brand 101

Electrolux in India: Branding Blues 121

Euro Disney: Failed Americanism? 131

GAP and Banana Republic – Changing Brand Strategies with Fashion 143

Global Branding Strategies of LG Electronics 159

Haier: Developing A Global Brand 175

Hyundai’s Global Branding Strategies 185

Internal Branding: The i-flex Way 193

ITC’s Branding Strategies 205

James Bond – A Meta Brand? 219

La-Z-Boy: Changing Style 227

Louis Vuitton: The Making of a Star Brand 239

Managing Brand Reputation: The Case of Coke, Pepsi and Cadbury in India 249

Master of Wine: Creating a Unique Brand 257

Mattel Inc.’s Barbie: Brand Merchandising Strategies 267

Puma: Reclaiming its Pride 281

Real Madrid: From a Football Club to a Media Brand 295

Roger Deromedi – Solving the Brand Portfolio Problems at Kraft Foods Inc. 311

Sam Adams’ Repositioning Strategies 329

Samsung Electronics: Mr. Yun’s Efforts for Upscale Image 341

Taiwan’s OEM Industry: Acer’s Branding Dilemma 353

Case Title Page No.

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OVERVIEW

One of the most important aspects of strategy in modern business is ‘Branding’. Throughout
most of the twentieth century, the Western brands were dominant. The American and
European companies were the first to realise the power of strong brands and invested
heavily in building them. The Japanese followed suit, with Sony leading the way. The
companies in the Eastern world, which, until then, had served as low-cost manufacturing
bases for Western companies, were the next to catch on. For instance, Samsung of South
Korea, which was once known for low-cost and low-quality products, benchmarked its top
rival and invested heavily to reinvent its brand. China’s Lenovo took the route of purchasing
established brands (Compaq) to strengthen its brand portfolio. Original equipment
manufacturer, BenQ of Taiwan, invested the profits from its current business into building
its own brand and thereby took the risk of directly competing with its current customers
(like Dell, IBM, etc.).

Although there are many advantages to owning a powerful brand, not the least of which is
the option of premium pricing, building a brand is a costly and consistent affair. As brands
have proliferated the marketplace, the risk of failure has grown exponentially and brand
managers have been forced to take a re-look at their notion about brands and branding.

Branding is often misunderstood as merely being an advertising function and is therefore
widely mismanaged. Brand managers often view branding as a supplementary task, involving
the management of a product image that can be separated from the main business of
product management. However, new-age thinking provides an alternative perspective,
stating that,

• Branding is a strategic point of view, not a select set of activities

• Branding is central to creating customer value, not just images

• Branding is a key tool for creating and maintaining competitive advantage

• Brand strategies must be ‘engineered’ into the marketing mix.1

Traditional business thinkers often assumed that product value as experienced by the
customers, and product value as measured by the company, were one and the same. That
is, if a company builds a better product, the customer will experience an increment in
product value, and vice versa. Marketing, however, makes a crucial break from this
assumption, emphasising that customer value is always perceptual as it is shaped by the
subjective understanding of customers and is, in fact, never objective.

A brand is therefore the product as it is experienced and valued in everyday social life, and
branding refers to all the activities that shape customer perceptions, particularly the firm’s

i

1 Holt Douglas B., “Brands and Branding”, Harvard Business School (Note), Harvard Business School Publishing, March
11th 2003, page 1 [ECCH Ref. No. 9-503-045]

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activities.2 To be successful, brand managers must realise that although a product consists
of a bundle of tangible, functional attributes, a brand’s offerings go much beyond that. For
instance, Coca-Cola is not just a beverage that customers like. The fact is that Coca-Cola
conveys the image of being an optimistic, American product that attracts consumers. The
brand can therefore be thought of as the culture of the product. Brand culture is formed
when images, stories and associations are created around the product, mostly by the
company and customers.

To comprehend the value and hence the importance of a brand, a brand manager has only
to evaluate the difference between what a customer is willing to pay for a branded product
and a generic product. The brand value can be stated to be an assimilation of four dimensions:
Reputation Value, Relationship Value, Experiential Value, and Symbolic Value (Exhibit I).

ii

2 “Brands and Branding”, op.cit.

Source: Holt Douglas B., “Brands and Branding”, Harvard Business School (Note), Harvard Business
School Publishing, March 11th 2003, page 1 [ECCH Ref. No. 9-503-045]

Exhibit I

What is a Brand?

BRAND = STORES, IMAGES, ASSOCIATIONS

Reputation Value
Stories imply perceived
quality of product features.

Experiential Value
Stories shape experience of
the product.

Relationship Value
Stories imply that firm is a
long-term partner that will
attend to customer interests.

Symbolic Value
Stories imbue the product
with values and identities.

THE PRODUCT
(objective features, quality

standards, augments)

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Building strong and sustainable brands requires developing a well-conceived brand strategy.
To be successful, all aspects of the brand strategy must deliver a consistent message that
is in tune with the overall goals of the business. However, there is no universal rule that
governs the designing of brand strategies. In a Harvard Business School note, ‘Brands
and Branding’, author Douglas B. Holt outlines this four-step process for developing a
brand strategy:

Step 1: Identify goals that branding can address

Not all business goals require or demand a branding solution. Therefore, a brand manager
must identify those business goals which are amenable to branding. In the cases, where a
business goal can be achieved by enhancing perceived product value, brand strategies are
most appropriate.

Step 2: Map the existing brand culture

Mapping the existing brand culture involves evaluating the brand culture across the four
components of brand value described in Exhibit I. This requires collecting information in
tune with the four different components of brand culture. In this step, it is important for a
marketer to identify the points of divergence between the firm’s current brand strategy and
brand culture.

Step 3: Analyse competition and environment to identify branding opportunities

Analysing competition involves mapping the competitors’ brand culture as done in Step 2.
This step must be carried out because achieving competitive superiority in brand value
requires benchmarking against competitors’ brands. Carrying out mapping of competitors’
brand culture will enable a marketer to improve the firm’s brand culture over those of its key
competitors, and at the same time, identify and work on any possible weak-points that may
enable the competitors to make inroads into the future.

The other, and perhaps the more important aspect to be taken into consideration while
branding is the shift in environment. Identifying opportunities in the environment –
consumers, technology, infrastructure, etc. – that competitors have failed to identify or
react to, is the way to create the most significant brand value.

Step 4: Design the strategy

The final step involves creating a blueprint of the path that a firm should take to make a
transition to the desired brand culture. This design must chart out the firm’s existing brand
culture, outline the opportunities identified in Step 3 and then, finally detail the desired
brand culture (Exhibit II).

iii

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The brand strategy should specify which marketing mix elements will be used and how they
will be integrated into the overall plan to produce a consistent branding effort. This part of
the brand strategy deals with implementation or engineering the desired brand culture
across all the relevant aspects of a marketing mix and allocation of the requisite resources
for achieving the desired end.

Once a brand strategy has been created and implemented, it must be evaluated to assess
whether it is working or not. Brand managers can use any one or a combination of the
following to evaluate the effectiveness of their branding effort:

Behaviours: Behavioural loyalty is one way of measuring the strength of a brand. That is,
all other factors being constant, when a brand’s value increases, a customer will purchase
the brand more frequently and will be less likely to switch over to other brands.

Attitudes: This measurement recognises the fact that strong brands share certain consumer
attitudes. For instance, the brand may be associated with influential users. Traditional market
research and informal feedback methods like websites can be used to gather information and
identify attitudinal measures – to make comparisons and deduce attitudinal strength.

Relationships: Another measure is determining the relationship strength. This works on
the principle that when brand value is high, customers will depend more heavily on the
brand, and hence develop a deeper relationship with it.

Source: Holt Douglas B., “Brands and Branding”, Harvard Business School (Note), Harvard Business
School Publishing, March 11th 2003, page 1 [ECCH Ref. No. 9-503-045]

Exhibit II

Brand Strategy

Existing Brand Culture

• Product Reputation
• Relationship Perceptions
• Experience Framing
• Symbolism

Strategy Drivers

Environment
Changes

Competitive
Benchmarking

Brand Culture Goal

• Product Reputation
• Relationship Perceptions
• Experience Framing
• Symbolism

Brand Engineering

Product Design Advertising Channel Policy Pricing
Service Delivery Personal Selling Retail Design Promotions
Service Quality Public Relations Customer Interface
Packaging Corporate Comm.

Corporate Actions

iv

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