Task: Research a luxury brand and its branding strategy, looking at t

Basics of Integrated Marketing Communications

❖ PR

❖ Social Media

❖ Special Events

❖ Direct Marketing

❖ E-communications

❖ Sales Promotions

❖ Media Events

❖ Advertising

❖ Research & Strategic Planning

Media that pushes brands forward

❖ Most media that results in making brands successful tend to be the following styled titles

❖ Dailymail – has the most amount of results based traction, why?

❖ Contrastingly, Cosmopolitan has traction, why?

❖ However, so does Get the Gloss for beauty?

St Tropez tanning – and their boom

❖ DailyMail

❖ Press Event at a Hotel

❖ Beckham’s are invited

❖ A Bag changed everything

❖ St Tropez went Viral

❖ Nowadays; this is considered to be Celebrity Endorsement

Brand Touchpoints with that example

❖ Pre – Purchase experience 
 Ambassadorship, Brand Association

❖ Secondary Product Performance

❖ Word of Mouth

❖ Community Involvement

❖ Vision/Mission Achieved?

“St.Tropez is proud to be the number one premium tanning brand chosen globally by professionals, celebrities and beauty editors

alike.”

If you had to position them would you say that St Tropez was positioned well 


in this instance?

https://www.youtube.com/watch? v=EJQ5aOQGMC8

at 15:44

What is an endorsement? ❖ Endorsement is a channel of brand communication in which an

ambassador acts as the brand’s spokesperson and certifies the brand’s claim and position by extending his/her personality, popularity, stature in the society or expertise in the field to the brand.

❖ Brands are always seeking validation in one form or another, and often the easiest and most compelling way is to have someone famous eat, wear, drive, walk in or just say something nice about your brand.

❖ But sometimes this also goes wrong

Dior Beauty

2008 – Monica Bellucci

❖ Demographic ❖ Does she align with brand values ❖ Does she fit the brand perception ❖ What are your touch points ❖ Why wouldn’t this work now? ❖ https://www.youtube.com/

watch?v=ANpYCzSsslQ ❖ https://www.youtube.com/

watch?v=bY5K57Ka8H0

Simultaneously she starred in this

Calvin Klein

Other companies that followed suit

Other companies that followed suit

Events

❖ Events have somewhat overtaken trade shows and their functionality

❖ Pop-ups are the new it

❖ Financially they make the most sense; everyone important is in one place

❖ Rare for brands to have consumer engagement

YSLxTheCurtain #YSLbeautyclub

BOD launch at the W – the collab

What their event entailed

Experience day events

❖ Molton Brown Fragrance away day

❖ New launch of range products

❖ A scent inspired cocktails and food

❖ Luxury Car Pickup (but a coach home)

❖ Fragrance making workshop

Inside the event

Fenty Savage X Popup

How brands evolve – with events & stretches

Brand Equity

Step 1: Brand Identity – Who Are You?

In this first step, your goal is to create "brand salience," or awareness – in other words, you need to make sure that your brand stands out, and that customers recognize it and are aware of it.

You're not just creating brand identity and awareness here; you're also trying to ensure that brand perceptions are "correct" at key stages of the buying process.

Limited to Market Segmentation & USP

Step 2: Brand Meaning – What Are You?

Your goal in step two is to identify and communicate what your brand means, and what it stands for. The two building blocks in this step are: "performance" and "imagery."

"Performance" defines how well your product meets your customers' needs. According to the model, performance consists of five categories: primary characteristics and features; product reliability, durability, and serviceability; service effectiveness, efficiency, and empathy; style and design; and price.

"Imagery" refers to how well your brand meets your customers' needs on a social and psychological level. Your brand can meet these needs directly, from a customer's own experiences with a product; or indirectly, with targeted marketing, or with word of mouth.

Step 3: Brand Response – What Do I Think, or Feel, About You?

Your customers' responses to your brand fall into two categories: "judgments" and "feelings." These are the two building blocks in this step.

Your customers constantly make judgments about your brand and these fall into four key categories:

• Quality: Customers judge a product or brand based on its actual and perceived quality.

• Credibility: Customers judge credibility using three dimensions – expertise (which includes innovation), trustworthiness, and likability.

• Consideration: Customers judge how relevant your product is to their unique needs.

• Superiority: Customers assess how superior your brand is, compared with your competitors' brands.

• What can you do to improve the actual and perceived quality of your product or brand?

• How can you enhance your brand's credibility?

• How well does your marketing strategy communicate your brand's relevancy to people's needs?

• How does your product or brand compare with those of your competitors?

Step 4: Brand Resonance – How Much of a Connection Would I Like to Have With You?

Brand "resonance" sits at the top of the brand equity pyramid because it's the most difficult – and the most desirable – level to reach. You have achieved brand resonance when your customers feel a deep, psychological bond with your brand.

The Collab

1) Increased market share

When two brands come together with an objective of Brand Collaboration, the main objective is to share the expertise and offer the unique and innovative product to the customers that will help them gain the competitive edge and advantage in the market increasing the market share by manifolds. With the elevated market share, both the parties enjoy the higher return on investments and increased profits.

2) Knowledge Sharing

Every brand in the industry is expert and has knowledge resources on specific parameters but has to outsource or rely on the third parties on the elements and facets on which the brand lacks knowledge and proficiency.  Hence, the aspect of collaboration provides impetus to the factor of knowledge sharing that helps both the brands to enhance their creativity levels and come up with the product that is path-breaking in nature and ideation process utilizing their respective elements of knowledge and expertise.

Advantages of Brand Collaboration:

3) Higher profits

The main and primal objective of any business is to generate higher revenues and profits by increasing the sales of products using various means and alternatives. And Brand Collaboration is one of the best strategic tools and mediums for the firm to gain the higher amount of profits as getting attached to the other powerful brand name through the alliance results in the enhanced brand value, reach and market share.

4) The widened base of customers

Both the brands that are coming together for the Brand Collaboration enjoy the huge base of customers and followers who are loyal to the brand and its various offerings. And the collaboration helps both the brands to widen their customer base as the target market and customers of both the brands are tapped with the common goals and motives of higher sales and elevated profits.

5) Increased brand reach

The Brand Collaboration not only grabs the eyeballs of the industry veterans, peers, and market insiders but the customer base of both the brands are equally excited about the outcome of the collaboration. The brands use the potent mix of traditional and modern media and marketing channels to make the customers aware of the alliance and what is in store for them.

Kapferer’s Brand Identity Prism The key elements of Kapferer’s model are as follows:

1. Physique

2. Personality

3. Culture

4. Relationship

5. Self-image

6. Reflection

PHYSIQUE

The first element refers to the physical characteristics of a brand. Namely, how we define the brand and how it will manifest, including its visual features—visual cues that help consumers identify the brand.

A good example of a brand with distinctive physical characteristics is iPhone. Some ideas that come to mind when we think of iPhone include modern, sleek, and minimalistic. Apple has succeeded in reflecting these attributes, which are its core values, throughout its products. Other common elements of physique include colors, logos, and packaging.

PERSONALITY

The second element is the brand’s personality or character—the traits of the brand in the eyes of the consumer. One way of understanding this concept would be to imagine your favorite brand as a living thing. What kind of living thing is it? How does it behave?

To convey brand personality, brands may use a specific style of writing, tone, attitude, or colors. For example, Coca-Cola uses its iconic typeface and the color red to communicate happiness and the moments of joy the brand personifies.

CULTURE

According to Kapferer, culture is the set of values that feed into or set a foundation for the brand. In some cases, this will include the culture and values of the brand’s country of origin (e.g., Ferrari is associated with luxury and the Italian tradition of sports cars). In other cases, Culture may have little to do with the brand’s country of origin.

Toyota used culture to establish a set of guiding principles known as “The Toyota Way.” These principles incorporate Japanese cultural concepts, such as “heijunka,” which means “work like the tortoise, not like the hare” and refers to leveling out the workload to minimize waste.

SELF-IMAGE

Self-image relates to the way in which customers see themselves in a particular brand. Brands can use self-image to their advantage by incorporating it into their identities. Self-image is like a mirror the target group holds up to itself—by associating themselves with certain brands, they see themselves differently.

For example, BMW India launched a campaign for people who see themselves driving a BMW, now or in the future. The campaign was “Don’t Postpone Joy.”

REFLECTION

While the terms sound similar, Self-image and Reflection differ in a noteworthy way: Self-image refers to the customers’ ideas of themselves, whereas Reflection refers to how a brand portrays its target audience. Reflection is a set of stereotypical beliefs or attributes of a brand’s target market, which is often highlighted in ads and other communications.

For example, Coca-Cola and many other soft-drink companies depict their consumer base as fun, friendly teenagers, because doing so creates a desired impression of the soft-drink brand. In reality, consumers of these beverages range far more broadly in both age and personality.

RELATIONSHIP

The final element of Kapferer’s Brand Identity Prism is about the nature of the relationship between the brand and its consumers, including both abstract aspects of the relationship as well as more tangible aspects, like what specific services are offered. How a brand connects with its audience and the type of relationship it wants to build is entirely up to that brand.

What are the types of services or attitude the brand wants to convey? Client-focused attention to detail? A more aloof attitude? For example, BMW has a serious-but-playful relationship with its customers, whereas Ferrari’s relationship is more serious and exclusive.

Brand Personality (Aaker)

Sincerity

Excitement

Competence

Sophistication

Ruggedness

Brand Leveraging

❖ Strategy which uses existing brand to expand into a new class or new product category

❖ NPI (New product introduction) cerebrates a sense of familiarity by carrying positive brand characteristics and attitudes

❖ Instant Recognition

Let’s think of some examples?

Line Extensions

❖ Added variant to an existing range

❖ Flavour, size , packaging, to target a sub set of consumers

❖ To satisfy needs or market segments by providing variety

Why?

❖ Variety

❖ Sub Sects

❖ Pay Scale

❖ Profits

❖ Shelf Space

❖ Competitors

Vertical Stretches

Advantages of Vertical Stretch

❖ Offers a premium of an existing brand

❖ Trade Down options

❖ Counter maturity competition (price)

❖ Expansion opportunities based on per capita income

Why not?

❖ Damage core brand

❖ Reduce Exclusivity

❖ Reduce trade channel margins

❖ Volume increase risky

Brand Extensions

❖ One brand, new categories

❖ Some work really well others fail

Why?

Brand Extension Types

❖ Image Related

❖ Unrelated

❖ Complementary

❖ Range Brands, a brand which creates an identity spanning product classes.

❖ Ad-Hoc Extension, limited, internal goal based, money or sentimental value.

❖ Temporary for press!

Brand Architecture

Brand architecture is ultimately about managing perception

Branded House

House of Brands

Endorsed

Hybrid

Brand DNA

Licensing

Licensing

Definition of Licensing

As we said above, a licensing agreement authorizes a company which markets a product or service (a licensee) to lease or rent a brand from a brand owner who operates a licensing program (a licensor). Companies who know their brands well will have a good understanding of the equity of the brand. A brand’s equity is derived from the awareness and image a brand holds with its consumers.

But, beginning in the late 1990s, the practice of licensing went downhill because of quality and design problems and the omnipresence of certain products, which brought about brand dilution. Consequently, after years of negative press, many professionals forgot about the positive benefits of licensing and how it can create win-win situations. Today, however, though a large number of luxury and premium brands have licensing agreements for their accessories and cosmetics lines, it seems like the newer practice of collaborating may be taking root.

• Dior was the first to exploit his name with licensing agreements, which at the time tailored products to local markets and offered unique price per value products at varying price ranges.

• It is very difficult to do this today- a company must maintain consistency across all markets because information is so easily exchanged over the internet and worldwide travel.

• By 1984, as a result of diminished stylistic value after the death of the brand’s namesake and a brand image spread thin through various uncontrolled licensing agreements, Dior was on the verge of bankruptcy.

• After understanding that fashion needs a wow-factor, the company wisely placed wild boy John Galliano at the helm of Dior in 1996.

• In the case of smaller and boutique luxury brands, due to financial and marketing resource limitations, the idea of brand development often appears lucrative but can become an issue very quickly.

• In the case of smaller and boutique luxury brands, due to financial and marketing resource limitations, the idea of brand development often appears lucrative but can become an issue very quickly.

• Licensing a brand should be limited, possibly avoided, and when done the brand must insist upon a certain level of quality in the licensed products

• Brands are cultural artefacts, which means that a brand is damaged by licensees who do not share the culture of the licensor. Also, culture is more than skin-deep and cannot be consistently faked.

Giorgio Armani stretched his business out from Ready-to-wear to also sell Accessories, Jewelry & Watches, Cosmetics & Fragrances, Sunglasses, Furniture, Restaurants, Nightclubs, Hotel & Resorts.

Giorgio Armani again as an example, throughout the years Giorgio Armani S.p.A. has developed many different lines under his main brand, targeting different customers by adding different products with different prices and styles.

Giorgio Armani line extensions are Armani Jeans, Armani Exchange Emporio Armani, Armani Collezione and Armani Privé and as you can see, all of them are related to their parent brand’s business.