1. No category

Welcome to
GLOBAL BRAND MANAGEMENT
• To-day

Goals
– How we are going to work (syllabus)
– Some rules

Part I : Investigating the Brand
« power »
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Me …

Alain Hutinel

Education
–
–

ESSEC
MBA Keller Graduate School of Business (Indiana
University)
Experience
20 years in FMCG Marketing, Colgate Palmolive &
Quaker Oats
2 years MD of an IT Network Cy
15 years of Consulting and Teaching

Major interests
…. Teaching internationally
Marketing Communications and Brand
Management
…. Discovering new ways of marketing
hutinel@pdx.edu
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Office : 260C
Tu, W & Th.
503-725-3732
You…

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Special Topics/ Interest in Brands … Specific project
Business actual situation ……..
> let’s talk and imagine
Your role :
to build your own brand model
so as to better anticipate what you think
will happen
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Class materials
Course Slides + on PSU/SBA - Faculty
and Staff - Alain Hutinel website &
course e-mail (to-morrow)
 CD-ROM
 Reference book : Lane Keller,
« Strategic Brand Management »
• Also : « Brand Portfolio Management »
by D.A. Aaker
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PSU - 2006 - Global Brand
Management - Alain Hutinel.
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(some) Brand Management Websites
www.pwcglobal.com/fr/fra
www.tns.com
www.esomar.nl
www.brandweek.com
www.brandchannel.com
www.brandfinance.com
www.milwardbrown.com
www.future.sri.com
www.intelliquest.com
www.accenture.com
www.ipa.com
www.prodimarques.com
www.labelmark.com
www.nomen.com
www.mckinseyquarterly.com McKinsey
www.exmarketing.com
www.bec-institute.com
http://www.cobranding.com
www.globalbrand.org
PriceWaterhouse
Taylor Nelson Sofres, Etudes, Panels, Piges ….
ESOMAR Recherche MArketing
US magazine
Interbrand “The” site on Branding.
Brand research and survey company
Research International.
Millward Brown.Adverising
Accenture
UK Institute of Professional Advertisers
French Brand Association
French consultant
French consultant for Brand Names search
Consultants, Bern Schmitt (Columbia U.)
HighCo brand Institute partly in English
co-branding offers
PSU - 2006 - Global Brand
Management - Alain Hutinel.
What will be evaluated

Importance vs Completeness
 Capacity to judge and build own opinion
(managerial aptitudes)
 Capacity to anticipate and innovate (d°)
 Capacity to evaluate quality of marketing
activities (d°)
PSU - 2006 - Global Brand
Management - Alain Hutinel.
YOUR ROLES
AND RESPONSIBILITIES
1. To build your own brand model
2. To anticipate what you think
should happen
3. Individually, to do the required
homework and participate in
class debate
4. To actively contribute to group
work
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Requirements and grading

Readings as directed
 3 individual essays from readings
 3 individual cases (powerpoint format only)
 1 group brand audit & project
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Typical Reading/Essay format
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The most important/new ideas/concepts retained by the writer(s)
Critique/discussion on these ideas, on methodology, argumentation etc
….
Give your opinion
Say what might happen 5 to 10 years from now
Provoque class debate
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How you will apply in your brand audit

10 minutes = no more than 6/7 light slides
All work in powerpoint format
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PSU - 2006 - Global Brand
Management - Alain Hutinel.
Course main Topics
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Brand strategic role
The Brand system
Valuating the Brand
Brand Equity
Brand Identity

Managing the Brand
Communicative scope
 Managing Brand
Architecture
 Brand portfolio Issues
 Cross-cultural Branding
PSU - 2006 - Global Brand
Management - Alain Hutinel.
TO-DAY
 Investigating,
understanding
the Brand Importance to the
firm
 Defining the Brand
 The Brand System
 Defining the Brand roles
 Brand Power and Value
PSU - 2006 - Global Brand
Management - Alain Hutinel.
« Ultimately, Brands are all
about trust …
… the reason consumers flock to some brands
and ignore others is that behind the brand
stands an unspoken promise of value. That is
why brands are becoming even more
important drivers of growth. That is also why
Unilever wants Knorr, Skippy, Hellmann’s,
SlimFast and Ben & Jerry on its plate. »
Mukul Pandya, WSJ.
PSU - 2006 - Global Brand
Management - Alain Hutinel.
12
Key trends affecting brand
management … & marketing !
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Consumption, societal & cultural multifragmentation & globalisition
Less loyal / more « intelligent (?) »
buyer
Self value-building consumption
Search for emotions
Multiplication of offers & chanels
Interactive marketing technologies
Markets saturation
Multiplication of touchpoints/contacts
Loss of credibility of traditional media
PSU - 2006 - Global Brand
contacts
Management - Alain Hutinel.
From USP to HSP
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USP = Unique Selling Proposition
ESP = Emotional Selling Proposition
OSP = Organizational Selling Proposition
BSP = Brand Selling Proposition
MSP= Me Selling Proposition
HSP =Holistic Selling Proposition

(Martin Lindstrom)
PSU - 2006 - Global Brand
Management - Alain Hutinel.
A Brand builds its Own world

And that is a fantastic power !
PSU - 2006 - Global Brand
Management - Alain Hutinel.
In this brand (!) new
world, What IS a Brand
and What DOES a Brand
do?
PSU - 2006 - Global Brand
Management - Alain Hutinel.
16
Think of Brands in your own life
1 - Think of how you became aware of
them, why you bought them, why you
prefer them, how you feel about them ...
 2 - List them as they come to your mind
 3 - Chose one brand you are very
familiar with :
. What does this Brand do for you?
. What does it MEAN to you?
. How do you relate to it ? …
 4 – Main characteristics of a world
without Brands ?

PSU - 2006 - Global Brand
Management - Alain Hutinel.
“What is the best …”
Who makes the best …. Automobile ?
 ………
 Do you own one ?
 Have you ever owned one ?
 Have you ever driven one ?
 Do you know anybody who owns one ?
 How do you know ….. It is the best ?
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PSU - 2006 - Global Brand
Management - Alain Hutinel.
Brand is an experience

A brand is essentially a container for a costumer’s
complete experience with the offer and the company.
(Sergio Zyman)
PSU - 2006 - Global Brand
Management - Alain Hutinel.
PSU - 2006 - Global Brand
Management - Alain Hutinel.
What is a Brand
(shortcut) ?
User
Culture Personality
Attributes Benefits
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Values
The Brand as an Open System.
Corporation
Economy
…
Chanels, contacts
…
Relationships with
customers
Competition
Organization’s
associations
Personality
.Scope
.Attributes
Codes/Tone
.Uses
Skills
(Core) Offer
.Quality/
(Tangible Products &
Symbols
Services)
Value
Origin
.Functional
User Imagery
Self-expressive
Benefits
benefits
Name
Tribes
Emotional benefits
Cultures
PSU - 2006 - Global Brand
Groups …
Management - Alain Hutinel.
This Brand System
interacts AS ...
1) .. A SOCIO-ECONOMIC AGENT
2) .. A CORPORATE ASSET
3) .. A STRATEGIC MARKETING
TOOL
4) .. A COMMUNICATING &
SELLING AGENT
PSU - 2006 - Global Brand
Management - Alain Hutinel.
THE BRAND AS A SOCIO-ECONOMIC
AGENT
• PART OF EACH INDIVIDUAL’S AND SOCIETAL
GROUPS ’ SET OF REFERENCES
• A POWERFUL SOCIAL DRIVER
• A GLOBAL CIMENT
• A VALUE ADDING ECONOMIC AGENT
PSU - 2006 - Global Brand
Management - Alain Hutinel.
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Brand Strategic Role
Brand
Equity
Consumer
Response
Booster
Cash flow
booster
PSU - 2006 - Global Brand
Management - Alain Hutinel.
PSU - 2006 - Global Brand
Management - Alain Hutinel.
THE BRAND AS A CORPORATE ASSET
• A PROTECTED PROPERTY (owner's right to use)
• BOOK VALUE, GOODWILL. ASSET that can be
sold and bought
• MARKETING « NON TANGIBLE » ASSET
precisely measurable and valuable (when
brand is on sale) :
STRENGTH , LEADERSHIP & EQUITY, ie
capacity to justify price.
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Brand Asset Value
Source : K.L.Keller
PSU - 2006 - Global Brand
Management - Alain Hutinel.
BRAND EQUITY
as a Percent of Firm Tangible Assets
Industry
Brand Equity
Apparel
61
Tobacco
46
Food products
Chemicals
37
34
Electric machinery
22
Transportation equip.
20
Primary metals
Stone, glass, and clay
PSU - 2006 - Global Brand
Management - Alain Hutinel.
1
0
Brand (Market) Performance
Valuation
DDB Pricing Studies
 Landor Power Index
 Interbrand Valuation model
 Y&R Brandasset Valuator
 Intangible Value Valuator
 Sometimes stock market value

PSU - 2006 - Global Brand
Management - Alain Hutinel.
The Landor Power Index
Power = strength
 2 synthetic
measures
Awareness
Esteem
 «Share of Mind»
idea (cf. Share of
Market Share of
Voice, Share of
Requirements ....)

Most influencing
factor : brand
perceived quality
 need time
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PSU - 2006 - Global Brand
Management - Alain Hutinel.
Interbrand BRAND VALUE
Attributes
Leadership (25%)
Trend (10 %)
Stability (15 %)
Support (10 %)
Market (10 %)
Protection (5%)
Market share,
Awareness,
Positioning,
Competitor Profile
Longevity Coherence
Consistency,
brand Equity, risks
LT erformance,
Projected performance,
Sensibility of Plans,
competition reactivity
What market,
Volatility size Market
dynamics Barriers
Internationality (25%)
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Consistency of message
and spendings,
Above/below the line
Brand franchise
Trademark registration
/registrability
common law,
litigations/disputes
Interb.
MB
Interbrand Ranking and Ratio of Brand value to Firm Market Value
2002
1995
1999
2001
Interbrand value
SM % B
Rank
$ bns Rank $ bns
Rank
$ bns
Rank
$ bns $ bns /SM
1 Coca-Cola
39 Coca-Cola84 Coca-Cola
69 Coca-Cola
70
138
51
2 Marlboro
39 Microsoft 57 Microsoft
65 Microsoft
64
276
23
3 IBM
17 IBM
44 IBM
53 IBM
51
138
37
4 Motorola
15 GE
34 GE
42 GE
41
309
13
5 HP
13 Ford
32 Nokia
35 Intel
31
185
17
6 Microsoft
12 Disney
32 Intel
35 Nokia
30
68
44
7 Kodak
12 Intel
30 Disney
33 Disney
29
47
62
8 Budweiser
11 McDonald's
26 Ford
30 McDonald's
26
38
68
9 Kellogg's
11 AT&T
24 McDonald's
25 Marlboro
24
10 Nescafé
10 Marlboro 21 AT&T
23 Mercedes
21
11 Intel
10 Nokia
21 Marlboro
22 Ford
20
32
63
12 Gillette
10 Mercedes 18 Mercedes
22 Toyota
20
100
20
13 Pepsi
8 Nescafé
18 Citibank
19 Citibank
18
223
8
14 GE
7 HP
17 Toyota
19 HP
17
58
29
15 Levi's
7 Gillette
16 HP
18 Amex
16
57
28
16 Frito-Lay
7 Kodak
15 Cisco
17 Cisco
16
116
14
17 Compaq
7
Amex
17 AT&T
16
43
37
18 Bacardi
7
Gillette
15 Honda
15
42
36
19 Campbells
7
Merryll Lynch
15 Gillette
15
38
39
20 Pampers
6 BMW
11 Sony
15 BMW
14
29
48
21
Honda
15 Sony
14
53
26
22
BMW
14 Nescafe
13
23
Nescafé
13 Oracle
12
44
27
24
Compaq
12 Budweiser
11
45
24
25
Oracle
12 Merrill Lynch
11
35
31
26
Budweiser
11 Morgan St.
11
50
22
27
Kodak
11 Compaq
10
28
Merck
10 pfizer
10
217
5
29
Nike
8 Nintendo
9 J.P. Morgan
10
72
14
30
Pfizer
9 Kodak
10
10 100
31
Gap
9 Dell
9
70
13
32
Dell
8 Nintendo
9
20
45
33
Golman S.
8 Mercx
9
130
7
34
Nike
8 Samsung
8
35
VW
7 Nike
8
36
Ericsson
7 Gap
7
13
54
37
Apple
4 Heinz
7 Heinz
7
38
Levi's
7 VW
7
21
33
39
Kellog's
7 Goldman S.
7
36
19
40
MTV
7 Kellog's
7
15
47
41
Canon
7 Louis Vui.
7
26
27
42
Samsung
6 SAP
7
33
21
43
SAP
6 Canon
7
34
21
44
Ikea
4 Pepsi
6 Ikea
7
45
Xerox
6 Pepsi
6
92
7
46
Ikea
6 HD
6
16
38
47
Pizza Hut
6 MTV
6
48
HD
6 Pizza Hut
6
49
Apple
5 KFC
5
50
Gucci
5 Apple
5
51
KFC
5 Xerox
5
34 ####
52
Ralph Lauren
2
Gucci
5
24 ####
53
Accenture
5
54
L'Oreal
5
48
10
55
Kleenex
5
56
Sun
5
22
23
57
Wrigley's
5
PSU - 2006 - Global Brand
Management - Alain Hutinel.
2003
RANK
Coca-Cola
Microsoft
IBM
GE
Intel
Nokia
Disney
McDonalds
Marlboro
Mercedes
Toyota
HP
Citibank
Ford
Amex
Gillette
Cisco
Honda
BMW
Sony
Nescafe
Budweiser
Pepsi
Oracle
Samsung
Morgan St.
Merrill lynch
Pfizer
Dell
Merck
JPMorgan
nintendo
Nike
Kodak
SAP
Gap
HSBC
Kellogg's
Canon
Heinz
Goldman S.
VW
Ikea
HD
Louis Vui.
MTV
L'Oreal
Xerox
KFC
Apple
Pizza Hut
Accenture
Gucci
Kleenex
Wrigleys
Colgate
Avon
2004
$bns
71
65
52
42
31
29
28
25
22
21
21
20
19
17
17
16
16
16
15
13
12
12
12
11
11
11
11
11
10
9
9
8
8
8
8
8
8
7
7
7
7
7
7
7
7
6
6
6
6
6
5
5
5
5
5
5
5
RANK
Coca-Cola
Microsoft
IBM
GE
Intel
Disney
McDonald's
Nokia
Toyota
Marlboro
Mercedes
HP
Citibank
Amex
Gillette
Cisco
BMW
Honda
Ford
Sony
Samsung
pepsi
Nescafe
Budweiser
Dell
Merrill Lynch
Morgan St.
Oracle
Pfizer
J.P. Morgan
Nike
Merck
HSBC
SAP
Canon
kellogg's
Goldman S.
Gap
Siemens
Ikea
HD
Heinz
Apple
Louis Vui.
UBS
Nintendo
MTV
VW
L'Oreal
Accenture
Xerox
Wrigley's
Kodak
KFC
Pizza Hut
Colgate
Kleenex
$bns
67
61
54
44
33
27
25
24
23
22
21
21
20
18
17
16
16
15
14
13
12
12
12
12
12
11.5
11.5
11
10.6
10
9.3
8.8
8.7
8.3
8.1
8
8
7.9
7.5
7.2
7.1
7
6.9
6.6
6.5
6.5
6.5
6.4
5.9
5.8
5.7
5.4
5.2
5.1
5
5
4.9
Y&R ’s « Brandasset Valuator » PowerGrid
Emerging
potential
Brand
Strength
Leadership
DREK
New/unfocused
DR
EK
DREK
Eroding Potential
D R
EK
Brand Stature
Differenciation Relevance Esteem Knowledge
Monash University MBA - January
2002 - Prof. A. Hutinel
PSU - 2006 - Global Brand
Management - Alain Hutinel.
26
Heinz Ketchup - 2000
PSU - 2006 - Global Brand
Management - Alain Hutinel.
THE BRAND AS A KEY STRATEGIC
MARKETING TOOL
* - BRAND LIFE CYCLE vs. PRODUCT LIFE CYCLE
Adaptable to changing environments and technologies
* SUPPORT OF LONG-TERM TIES WITH PEOPLE
* ALLOWS LOWER COST for NEW ENTRIES
* UNIQUE SPOKESMAN TO ALL PUBLICS
* JUSTIFIES HIGHER PRICE & MARGINS
PSU - 2006 - Global Brand
Management - Alain Hutinel.
The Brand Value Chain
Value Stages
 Marketing programs
 Customer Mindset
 Market Performance
 Shareholder Value
Value Multipliers
 Programs Quality
 Market Place &
Competition Conditions
 Investor Sentiment
PSU - 2006 - Global Brand
Management - Alain Hutinel.
The Leading Brands: 1925 and 1985
Product
Bacon
Batteries
Biscuits
Breakfast cereal
Canned fruit
Chewing gum
Chocolates
Flour
Mint candies
Paint
Pipe tobacco
Razors
Sewing machines
Shirts
Shortening
Soap
Soft drinks
Soup
Tea
Tires
Toothpaste
Leading Brand 1925
Current Position 1985
Swift
Eveready
Nabisco
Kellogg
Del Monte
Wrigley
Hershey
Gold Medal
Life Savers
Sherwin-Williams
Prince Albert
Gillette
Singer
Manhattan
Crisco
Ivory
Coca-Cola
Campbell
Lipton
PSU - 2006 - Global Brand
Goodyear
Management - Alain Hutinel.
Colgate
Leader
Leader
Leader
Leader
Leader
Leader
No. 2
Leader
Leader
Leader
Leader
Leader
Leader
No. 5
Leader
Leader
Leader
Leader
Leader
Leader
No. 2
BRAND EQUITY & MARKETING ASSETS
RATE OF LOYALTY
CAPACITY TO BUILD IT
LEVEL AND SCOPE OF
AWARENESS
LEVEL & DISTINCTIVENESS
OF PERCEIVED QUALITY
MEASURED STRENGTH OF
IMAGE AND IDENTITY
UNIQUENESS OF PERCEIVED
POSITIONNING
PREFERENCE POWER
OF PERCEIVED BENEFITS
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Building Brand Equity
Name
Awareness
Brand
Loyalty
Perceived
Brand
Preference
Quality
Associations
Other
Brand
Brand
Assets
Equity
Value To Firm
(Name &
• Helps Programs
Symbol)
Value To Customer
• Info Processing
•Confidence in Buying
•Use Satisfaction
PSU - 2006 - Global Brand
Management - Alain Hutinel.
• Brand Loyalty
•Prices
•Brand Extensions
•Trade Leverage
•Competitive
Advantage
P & G - Mr Propre Mr Clean
PSU - 2006 - Global Brand
Management - Alain Hutinel.
THE BRAND AS A
COMMUNICATING
& SELLING AGENT
* A RELATIONSHIP ACTOR/BUILDER
* AN INFLUENCER
* IT GIVES MEANINGS TO
PRODUCTS/SERVICES ...
* ... AND A CREATOR OF « NEW » WORLDS
PSU - 2006 - Global Brand
Management - Alain Hutinel.
The best Performances last longest.
PSU - 2006 - Global Brand
Management - Alain Hutinel.
From Traditional Marketing
Functions of the Brand Name …
Identification
Expresses the offer and is easily seen
 Practicality
Saves times/energy thru repeat
purchase & renewed satisfaction
 Guarantee of quality
 Has reputation

PSU - 2006 - Global Brand
Management - Alain Hutinel.
… to a powerful societal
system that … sells
… ie :
 exerts influences in the market place
 changes consumers’ wants and needs
 sets ideals and standards
 helps/facilitates choice
 provides purchase reassurance
 reduces after-choice dissonance
……
PSU - 2006 - Global Brand
Management - Alain Hutinel.
….
gives meanings and identity to what we
use & buy
 helps us build our self-identity
 provides a symbolic language through
which we can express ourselves in
society and be recognized and
understood by others
 creates a longlasting relationship with
« consumers », at least with customers

PSU - 2006 - Global Brand
Management - Alain Hutinel.
So, a modern brand is
A « persona » that overlays and
includes the physical products/services
 the sum of fundamental values and
attributes ascribed to it by people
 the entity that the consumers construct
from the products’ meanings, symbols
and images that they perceive as
defining the brand.

PSU - 2006 - Global Brand
Management - Alain Hutinel.
Evian Water brings health to all growing bodies
PSU - 2006 - Global Brand
Evian, approved spring
of youth for your body.
Management - Alain Hutinel.
PSU - 2006 - Global Brand
Management - Alain Hutinel.
PSU - 2006 - Global Brand
Management - Alain Hutinel.
US - Evian. l’Original. Approved by your body
as a source of youth.
PSU - 2006 - Global Brand
Management - Alain Hutinel.
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Many different types of
brands ?









B2B
B2C
Web
Trade
Local
Regional
National
International
Worlwide (meta)
Corporate
 Commercial
 Non-business (?)

– Countries
– Official bodies
– Charity org.
– Politics/Polticians
– …
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Nestle Branding Tree

7500 Local Brands
– Solis, Texicana, Rocky

140 Regional Brands
– Contadina, Stouffers, Herta, Vittel

45 Worldwide strategic Brands
– KitKat, Polo, Baci, After Eight, Coffee-Mate

10 worldwide Corporate Brands
– Nestle, Carnation, Maggi, Buitoni, Perrier
PSU - 2006 - Global Brand
Management - Alain Hutinel.
Nestlé Branding Tree
PSU - 2006 - Global Brand
Management - Alain Hutinel.
SARA LEE BRANDS

25,000 brands registered worldwide, 80% in
use.
 Sara Lee is eliminating R&D & Production to
focus on brand development
GLOBAL
REGINAL
PSU - 2006 - Global Brand
Management - Alain Hutinel.
LOCAL BRANDS
Sara Lee
Brand
Hierarchy
From Traditional to Experiential
Branding
From
 Brands as identifiers
 Names, logos, slogans
build awareness and
image
TO
 Brands as experience
providers
 Names, logos, slogans,
events, customer
contacts which build
sensory, affective,
creative relations and
ways of being (lifestyles)
with the brands
PSU - 2006 - Global Brand
Management - Alain Hutinel.