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Brand StrategyBrand Strategy

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Brand StrategyBrand Strategy
Developing Brand Vision
Establishing Brand Position
Fulfilling Brand Contract
Communicating Brand Position
Measuring RoBI

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Brand VisionBrand Vision
A clear articulation of the strategic,
financial, and brand goals that
management has created for the brand
A first step to strategic screens as to
where the brand can and cannot go

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Brand VisionBrand Vision
Provides a vision that forces
management to articulate what they
want the brand to "do" for the
organization over the next five years,
relative to brand value, revenue, and
profit contributions

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A brand's positioning isA brand's positioning is
the place in consumers'
minds that you want your
brand to own—the benefit you
want them to think of when
they think of your brand.

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A strong brand position means the brand
has a unique, credible, sustainable, and
valued place in customers' minds.
Good positioning gives you the direction
required to focus the organization and focus
your strategic efforts.

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A good positioning is a single idea to be
communicated to your customers.
It revolves around a benefit that helps
your product or service stand apart from
the competition.

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Disney
Wal – Mart
Fedex
McDonalds
Apple
Google
Toyota
Family Fun Entertainment
Low Prices and Good Values
Guaranteed Overnight Delivery
Food and Fun
Innovation
Simplicity
Reliability

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A well-crafted brand positioning has three
primary components:
• A definition of the target market you wish to pursue
• A definition of the business your company is in or
the industry or category it competes in
• A statement of your point of difference and key
benefits

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The Five Principles ofThe Five Principles of
Effective PositioningEffective Positioning
Fit :Fit : Seek to leverage strengths of
existing brand position
Value :Value : Focus on the perceived benefits
that customers value, as determined by
the customer model
UniquenessUniqueness : Go where the
competitors are not.

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The Five Principles ofThe Five Principles of
Effective PositioningEffective Positioning
SustainabilitySustainability : Maximize the length of
time this positioning can be owned
within the competitive set
CredibilityCredibility : Get a credible fit between
who you are and the supplier predicated
by the customer model.

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A Brand Contract isA Brand Contract is
a list of all promises the brand
makes to customers. Such a
contract is executed internally,
but it is defined and validated
externally by the marketplace.

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Brand Contracts can
and should change
over time. New
promises can be
added, other promises
can be updated, and
irrelevant promises can
be deleted.

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A Brand ContractA Brand Contract is a critical piece of the
brand position because it helps to further
define marketplace perceptions and
expectations and forces managers to be
honest with themselves.

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In addition to positive promises to customers, a
Brand ContractBrand Contract can contain negative promises
or attributes. It is important to build on the strong
brand promises and mitigate the negative ones.

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Starbucks' Implicit Brand ContractStarbucks' Implicit Brand Contract
• Provide the highest quality coffee available on the market today
• Offer customers a wide variety of coffee options as well as com­
plementary food and beverage items
• Have an atmosphere that is warm, friendly, homelike, and
appropriate for having a conversation with a good friend or
reading a book
• Recognize that visiting Starbucks is as much about the
experience of drinking coffee as it is about the coffee itself

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Successful Brand-BasedSuccessful Brand-Based
CommunicationsCommunications
• Use all communication strategies to help
achieve your corporate strategy and brand
vision.
• Let your brand positioning largely determine
the right communications strategy to execute.
• Use an integrated marketing communications
strategy to get maximum return from all dollar
investments.

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Some Metrics to Measure Return on BrandSome Metrics to Measure Return on Brand
Investment:Investment:
• Brand name knowledge, awareness,Brand name knowledge, awareness,
recognition, recallrecognition, recall: measures strength of the
brand as reflected by customer's ability to
identify the brand under varying conditions
• Contract fulfillmentContract fulfillment: measures the degree to
which your brand is upholding its Brand
Contract

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Some Metrics to Measure Return on BrandSome Metrics to Measure Return on Brand
Investment:Investment:
• Acquired customersAcquired customers: counts customers
claiming they have come to your company based
on the strength of the brand
• Customer loyaltyCustomer loyalty: measures the degree to
which customers continue to purchase your
brand and how long that loyalty has lasted

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• Financial valueFinancial value: reports the financial value of
your brand in the marketplace
• Price premiumPrice premium: finds the percentage of price
premium your brand is able to command over
private-label brands, as well as key competitor
brands
Some Metrics to Measure Return on BrandSome Metrics to Measure Return on Brand
Investment:Investment:

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Source of Reference:
Scott M. Davis, Brand Asset Management, Jossey
Bass.