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Video Guide

Strategic Brand Management Video Library, 3rd edition


Kevin Lane Keller
Revised by Andrew Schneller

ACCENTURE

Summary:
Formerly Andersen Consulting, Accenture is a global management consulting,
technology services, and outsourcing company. In 2001, a court ruling forced Andersen
Consulting to change its name, jeopardizing the firm’s brand equity. Rather than viewing
the name change as a setback, Accenture’s marketing executives used it as an opportunity
to reposition the company and reintroduce it to customers.

Discussion Questions:
1. How did Accenture transfer the brand equity from its original name, Andersen
Consulting, to the new company name?
Through a careful marketing campaign, Accenture tied its new name to the old
company while distinguishing the firm from its former parent company, Arthur
Andersen. By communicating well with existing customers throughout the process,
the company transferred much of its brand equity to its new name.

2. Evaluate the Accenture brand name using the six criteria detailed in the chapter.
Student responses will vary. The six criteria are: (1) It should suggest something
about the product’s benefits and qualities. (2) It should be easy to pronounce,
recognize, and remember. (3) The brand name should be distinctive. (4) It should be
extendable. (5) The name should translate easily into foreign languages. (6) It should
be capable of registration and legal protection.

3. How did Accenture use the requirement to rename the company as an opportunity
to reposition itself?
While reintroducing the company to current and future customers, Accenture
redefined its strengths and clarified its position in the marketplace.

Teaching Ideas:
1. Have students try to think of any other company that rebranded
themselves and how successful they were. Ask them about what they think of
Accenture and how strong their brand is.

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall 1


AFLAC

Summary:
That wacky quacky duck brought AFLAC to a high spot among most recognizable ads
and brand names. The insurance company is growing quickly as a result of this greater
name recognition. Brothers John, Paul, and Bill Amos founded AFLAC (American
Family Life Assurance Company) in 1955. The company now has annual revenues of
more than $11 billion and is Japan’s largest insurer. A great deal of its recent growth can
be credited to the “duck.” Since he was introduced in 2000 in the United States and
Japan, he has been featured on numerous television shows and has secured tremendous
visibility for AFLAC.

Discussion Questions:
1. What brand building tactic is Aflac most successfully using in this case?
Aflac is using a character to help build its brand. Characters can be a powerful tool
because they are colorful and rich in imagery. Aflac is using the character primarily
to build brand awareness, not to communicate its brand positioning.

2. Which of the six criteria for choosing brand elements is Aflac addressing with the
Aflac Duck?
The Aflac Duck is primarily addressing memorability, likeability, and transferability.
Aflac management recognized that the name was not memorable and certainly not
likeable to target customers. The Duck’s humorous and memorable voice makes him
memorable and likeable. The fact that the Duck is not specifically tied to a product
or service makes it easily transferred to new products. The remaining criteria
(meaningful, adaptable, and protectable) may be addressed in other aspects of
Aflac’s sales and marketing. For example, the meaningful elements of Aflac’s brand
are communicated primarily by its salesforce.

3. Humor is the cornerstone of AFLAC’s wacky duck advertising. Why do you think it
works for such a serious product as insurance? What other industries, products, or
brands have used humor to help position themselves in the marketplace?
Perhaps humor works for AFLAC because it is only associated with the name, not the
company’s attributes. The campaign has certainly managed to cut through the clutter
of thousands of television ads aired every day. The commercials make consumers
laugh and the sounds uttered by the duck (the AFLAC name) are memorable – both
keys to brand recognition. Other brands to use humor are Budweiser (which restricts
most of its advertising to this creative execution style), Geico, Holiday Inn, and
American Express. Since humor is one of the most powerful advertising tools, many
companies use it. However, humor is tricky and is subject to the wear-out factor.

4. Now that AFLAC is a widely known brand name, do you think the company should
drop the duck? What else might it feature?
Once name recognition is strong, consumer behavior models suggest the company
would have created a hunger for more information. Perhaps AFLAC could answer
some of the following questions as it continues to produce its ducky commercials:

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"Yeah, okay, the duck. I know the name is AFLAC because it sounds like that duck, but
what does AFLAC do? Oh, insurance. Well, what kind of insurance? My company
doesn’t make AFLAC available. How do I know it’s better? How would I convince
my company that we need that option? Could I buy AFLAC for my other insurance
needs? How would AFLAC policies and prices compare to the insurance policies I
already have? Where do I go for more information?” AFLAC’s test marketing of its
advertising and market research should answer whether or not the duck has achieved
wear-out.

Teaching Ideas:
1. Exercise: Have students identify two examples where a company uses a character to
build its brand. Then, ask them to determine which of the criteria for brand elements
the company is addressing with the character. If the character has been used for an
extended period of time, have them determine how and why the character has evolved.

2. Have students consider how the school mascot “brands” the school. If students were to
choose another mascot, which would it be? Why? How does the student’s choice
better reflect the personality and values of the school?

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall 3


AMERICAN EXPRESS

Summary:
American Express offers more than 20 consumer cards and 14 small business cards, in
addition to its customizable corporate cards. Some cards target very specific consumers.
By targeting such specific consumers, American Express builds strong relationships with
the right customers.

Discussion Questions:
1. How was the American Express brand limiting the company’s growth?
Consumers strongly associated the American Express brand with travel and leisure
spending. It was the preferred card for making travel and dining purchases.
Consumers did not associate the American Express brand with everyday purchases.

2. How did American Express use new brand associations to drive consumers to use
their American Express card for everyday purchases.
Ameircan Express associated its brand with Jerry Seinfeld, a popular television star
and comedian. Jerry Seinfeld’s humor focuses on the everyday aspects of life and his
public persona is one of the “everyman.” Advertisements with Jerry Seinfeld using
his American Express card to make everyday purchases such as gas helped extend
the American Express brand.

3. How and why did American express use a brand extension? Were there risks in
this move?
American Express’s launch of the Blue Card is a brand extension intended to target
new and younger customers. The existing American Express brand and products did
not resonate with young customers. The Blue Card was positioned as the card of the
future. This not only allowed for American Express to reach a new audience, but it
improved the overall brand image. There were some risks in launching the new Blue
Card. It could have confused customers, harmed the existing brand image, or dilute
the meaning of the American Express brand.

Teaching Ideas:
1. Have students think of examples where a company with a strong brand
launched a new product and/or marketing campaign intended to build and evolve the
brand? What were the potential benefits? What were the potential risks? Did the
company succeed in its efforts?

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DUNKIN DONUTS

Summary:
For more than fifty years, Dunkin’ Donuts has offered customers throughout the United
States, and around the world, a consistent experience—the same donuts, the same coffee,
the same store décor—each time a customer drops in. Now the largest coffee and
doughnut chain in the world, Dunkin’ Donuts serves more than 2 million customers each
day at more than 5,500 restaurants in the United States and abroad. The company plans to
more than triple its current number of stores, amassing 15,000 franchises by the year
2015.

Discussion Questions:
1. How has Dunkin’ Donuts maintained brand consistency over many decades?
By focusing its brand image on quality and consistency, Dunkin’ Donuts has been
able to maintain a consistent brand image. While new product introductions are
launched regularly and Dunkin’ Donuts has focused increasingly on coffee products,
relying on principles of product quality and consistency have kept the brand strong
over time.

2. What is Dunkin’ Donuts value proposition?


Dunkin’ Donuts offers coffee and food for “everyman.” The chain works because it is
accessible, rather than upscale. Dunkin’s customers include blue- and white-collar
workers across all age, race, and income demographics. Dunkin’s positioning and
value proposition are pretty well summed up in its new ad campaign, which features
the slogan “America Runs on Dunkin’.” Says one ad, “It’s where everyday people
get things done every day.”

3. How is Dunkin’ Donuts' growing its share of customer? How has the brand
evolved accordingly?
Dunkin’ Donuts is growing its share of customer by offering a greater variety of
products. The chain has added iced coffee, breakfast sandwiches, smoothies, gourmet
cookies, and Dunkin’ Dawgs to its standard line up of breakfast foods and coffee.
The launching of new products is conducted with the brand strategy in mind.
Products are launched only if they are of high quality, simple, and for the
“everyman.”

Teaching Ideas:
1. Ask students to visit a Dunkin’ Donuts store and visit the company’s website. Based
on the information presented in the video and the information and experiences
gathered in the store and online, ask students to assess Dunkin’s Donut’s points of
differentiation and points of parity.

2. Have students divide into two groups, those who prefer Dunkin’ Donuts and those
who prefer other coffee shops, such as Starbucks. Ask students to list companies and
brands with which they have relationships. How do the lists of brands and companies
compare? Ask students to discuss how their relationships were formed and what

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall 5


communications, if any, from the company have shaped the relationship. Ask how the
relationship impacts their buying behavior and impressions of the company’s brands
and products.

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EATON

Summary:
Eaton is one of the world’s largest suppliers of diversified industrial goods. Eaton’s
products make cars peppier, 18-wheelers safer to drive, and airliners more fuel-efficient.
At Eaton, B2B marketing means working closely with customers to develop a better
product. So the company partners with its sophisticated, knowledgeable clients to create
total solutions that meet their needs.

Discussion Questions:
1. What is Eaton’s value proposition?
Eaton solves problems for the end customer by providing innovative solutions that
are applied channel-wide. Eaton’s brand promises to provide innovative products
delivered on time and with a high level of service and support.

2. How does Eaton’s brand building activities demonstrate the differences between
business-to-consumer and business-to-business branding? Is there a difference?
The strategy and tactics employed to build a B-to-B brand are no different than those
employed to build a B-to-C brand. The difference is that customers behave
differently. As explained in the video, B-to-B customers are quite different than B-to-
C customers. B-to-B customers are more sophisticated, have far more knowledge of
the various suppliers, and are much more specific about their needs. When selling to
these customers, Eaton focuses on the specific needs of the individual customers and
communicates Eaton’s brand through direct contact with these customers. These
modes of communications include the products themselves and any related materials,
the sales force, and other B-to-B marketing tools.

3. How does Eaton brand itself across many segments and channels?
Eaton is faced with addressing several types of buyers across several segments and
channels. Eaton tailors its products and selling efforts to those buyers, while
maintaining a consistent brand across channels.

Teaching Ideas:
1. Give students two minutes to list all of the business-to-business marketers they can
recall. Give them an additional two minutes to list all of the business-to-consumer
marketers they can. Chances are, the list of b-to-c marketers is considerably longer.
Do any marketers make both lists? Ask students to think about the enormity of the b-
to-b market as compared to the b-to-c market. Why aren’t they more aware of b-to-b
marketers?

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HARLEY-DAVIDSON

Summary:
Harley-Davidson sells much more than motorcycles. The company sells a feeling of
independence, individualism, and freedom. To support that lifestyle, Harley-Davidson
offers clothes and accessories both for riders and those who simply like to associate with
the brand. By understanding customers, Harley-Davidson has grown into a $5 billion
company with more than 900,000 Harley Owners Group (HOG) members and 1,200
dealerships worldwide.

Discussion Questions:
1. How has Harley Davidson maintained brand consistency over many years?
The company is careful not to respond to recent trends in pop culture and the
motorcycle market. Rather, Harley Davidson maintains to its core message of
independence, freedom, the open road, and adventure in all branding vehicles. Much
of the branding is left to riders and the ownership groups, who project the image that
Harley Davidson has built over the previous century.

2. Does Harley Davidson’s merchandising of clothing and other products fortify or


leverage the brand?
Harley Davidson’s merchandising does both. It leverages the brand by taking
advantage of the high level of awareness and positive brand image to sell products
that are related to the core motorcycle product. It also fortifies the brand by
developing products that are related to the activity of riding the company’s bike. All
of the merchandise supports the central theme of independence and freedom.

3. How does Harley Davidson manage its brand globally? Are they standardizing
their brand management or customizing it to foreign markets?
Harley Davidson is using both standardization and customization. They work hard
to standardize the core brand message of independence and freedom, while allowing
country managers to implement that core brand message in a manner that is
appropriate for the foreign market.

Teaching Ideas:
1. Ask students to list the characteristics of the typical Harley owner. Then ask them
how Harley-Davidson’s marketing efforts target those and other consumers.

2. Have students play the role of a merchandiser of Harley Davidson products.


What products other than motorcycles are appropriate? What products are
inappropriate and why?

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HASBRO

Summary:
It all started with GI Joe back in 1964. That was when Hasbro, now a $3 billion company
operating in more than 100 countries, launched the now legendary toy and pioneered the
action figure category. Since then, the company has developed scores of new toys that are
well known to children and adults around the world. Hasbro’s brands include games such
as Hungry Hungry Hippos, Parcheesi, Risk, Trouble, Scrabble, Outburst, Twister,
Pictionary, Boggle, and Monopoly. The company also sells Tinker Toys, Lite-Brite,
Transformers, Glowworms, Mr. Potato Head, VideoNow, and Play-Doh.

Today, to keep up with constantly changing trends in the marketplace, Hasbro develops
almost 1,000 new products annually and launches nearly 80 percent of those products
within a year’s time. Getting all of those products to consumers requires a reliable and
efficient supply chain and a well-tuned marketing channel. Hasbro’s products can be
found in toy stores, drug stores, wholesale stores, and even grocery stores.

Discussion Questions:
1. How would you describe Hasbro’s brand hierarchy?
Rather than brand every product as a Hasbro product, Hasbro has chosen to
emphasize brand families. Much like General Motors sells a series of car brands,
Hasbro sells a series of games and toys that each has its own brand. Examples of
these are Monopoly, Easy Bake Oven, and Play-Doh. Each of these brands may then
have individual brands underneath them with various modifiers. The Hasbro
corporate brand may or may not be associated with the family brands.

2. What channels are Hasbro using and how does this affect its brand
strategy?
Hasbro distributes its products through indirect channels with a heavy focus on mass
merchandisers. Hasbro is able to leverage the brand equity of retailers such as
Target and Best Buy and transfer this equity to its own brands.

3. How does Hasbro work with retailers to build its brands?


Hasbro will cooperate with its retailers to integrate its products into the retailers
advertising. This transfers brand equity from Hasbro to its retailers and vice-versa.
The result is that Hasbro is targeting customers where they want to shop and working
with the retailer to drive sales of the company’s products.

Teaching Ideas
1. Have students visit three different types of retail stores frequented by children or
families. Have them make a list of products sold at each store find. Did they find any
Hasbro products? What other products did students find that they didn’t expect at each
retailer? How is the retailer using the Hasbro name to build its brand? How does
Hasbro benefit from the retailers brand?

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HONEST TEA

Summary:
The founder of Honest Tea started by meeting his own desire to have an organic soft
drink. Armed with a simple product sample, Seth Goldman pitched his new tea to a buyer
of Whole Foods. The buyer signed his first order and Honest Tea was founded. Now,
there are 11 varieties sold in thousands of retail outlets around the country. The company
recently hit breakeven and expects to continue growing at current rates.

More important than Honest Tea’s successful launch is its focus on social responsibility.
Honest Tea has become a role model of philanthropic business practices. Although the
company is barely at breakeven, it has already donated several thousand dollars to low-
income communities. Seth has partnered with South African farmers and the Crow
nation, both areas with high unemployment, to farm and sell crops for tea production. Not
only does the purchase of the crops benefit the farmers, Honest Tea donates 1% of all
sales in royalty fees for community development. Seth believes a social mission is not
only socially responsible, but also financially sustainable because it enhances customer
loyalty. The hope is for Honest Tea to become a well-known national brand and have
impact around the world.

Discussion Questions:
1. How is Honest Team using cause marketing to support its brand?
Honest Tea’s corporate social responsibility – specific its use of ingredients
purchased from poor regions of Sough Africa, is part of Honest Tea’s usage of cause
marketing to brand itself. The cause helps Honest Tea build brand awareness,
enhance its brand image as a company that cares for people, establishes the brand’s
credibility, evokes positive brand feelings, and creates a sense of community among
Honest Tea drinkers.

2. How does Honest Tea execute its cause marketing?


Unlike some firms which use causes as an explicit part of marketing and advertising
campaigns, Honest Tea uses its corporate social responsibility as a strategic means
to gain competitive advantage over other beverages. Its dedication to just causes
provides a point of differentiation from established beverage companies. Without the
firm’s corporate social responsibility initiative, its brand name Honest Tea would not
resonate with target consumers.

3. What brand risks are present when utilizing cause marketing?


Firms that use cause marketing may see the strategy backfire because it can be
viewed as self-serving or commercial. If the target customer base feels that the firm
is using corporate social responsibility solely to sell ice-tea products, it may damage
the brand. It is vital for the firm to be genuine in its efforts and make some clear
connection between its socially conscious efforts and the brand itself..

Teaching Suggestions:

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1. Ask the students to provide some examples of companies that use corporate social
responsibility as an important part of their brand building activities. Which of them
are successful? Which are not as successful?

Then have the students select a company that may be able to use cause marketing and
corporate social responsibility to build its brand but is currently not. What tactics
could the firm use? How would these efforts benefit the brand?

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INTEL

Summary:
With cutting-edge technology continually increasing, Intel decided to take its marketing
to a more advanced level, keeping in line with its product development. Initially, the
company was having a hard time getting technology managers to switch from the 286- to
the 386-processor. Intel realized it needed to market more to the end user of its
microprocessors to distinguish itself from others on the market. First, the company
marketed business to business. Then, with a very small marketing budget, the team test-
marketed a billboard campaign in Denver promoting the new processor. Based on the
response, Intel decided to take the campaign nationwide. This was the first marketing
effort focused on reaching the end user. Inadvertently, the team created a brand that is
both recognizable and memorable.

Discussion Questions:
1. Intel was the first computer component company to brand and market a
microprocessor. How did it distinguish “Intel Inside” and make it a factor that
consumers deemed important?
The success of the campaign and future campaigns hinged on convincing customers
that what was inside the computer is just as important as what is outside. Intel had to
create an “ingredient brand.” Microprocessors are just one piece of the whole
computer system. But Intel had the best product in its space and one that makes a
significant difference in the overall performance of the PC. Therefore, the marketing
team realized it had a product that could be branded and marketed to the end user.

2. It takes a great deal of money to create a brand. How did Intel generate brand
awareness without spending the millions it usually requires?
To help offset some of its costs, Intel entered into marketing agreements with several
OEMs. To make these arrangements effective for Intel, the marketing team had to
communicate the brand in a few seconds or less within the OEM’s ad. The result was
the Intel jingle.

Teaching Ideas:
1. Creating advertising copy can be a tenacious task. Intel managed to initiate broad
acceptance for all of its products using the Intel jingle to capture attention and by
stressing the importance of the processor in computer performance. Why do you think
Intel and the Pentium processor have been so successful?

Over the years and stacks of market research, the company has built significant brand
equity in “Intel Inside” and subsequently the Pentium processor. The marketing team
has capitalized on the brand equity by utilizing the brand message for all of the new
products, including the Pentium product name. Each process is marketed
independently but under the same brand. The future success of the company is in
continuing to create advancing technology and maintaining its strong brand equity.

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MARRIOTT

Summary:
When a person is traveling, regardless of the travel purpose, Marriott offers a complete
family of hotels, one of which is sure to meet individual needs. From luxurious full-
service hotels and resorts to all-suite hotels to affordable lodging along the way.
Basically, there is a Marriott for everyone. Marriott is the first hotel industry player to
apply segmentation, targeting, and positioning to the lodging industry. The company has
divided its brands into consumer-recognizable segments, each meeting the needs of a
particular niche of the market, from amenities-filled resorts and extended stays to
comfortable overnight accommodations. Marriott has successfully implemented
marketing public relations campaigns and advertising to establish each brand’s
recognition and the unique value associated with its level of services and its pricing
structure.

Discussion Questions:
1. How does Marriott use advertising and target marketing to promote its individual
brands?
Marriott creates a different lifestyle experience for each level of its lodging family,
highlighting those features that will most appeal to its target segment. By doing this,
the company also prevents the consumer from confusing the brands and from drawing
false perceptions of the benefits each facility offers. For example, television and print
advertising for a Marriott will portray a different lifestyle experience from that of a
Ritz-Carlton, and a Courtyard will be portrayed differently from a Renaissance Hotel
& Resort.

2. If Marriott wants to go after the entire market, why can’t it do that with just one brand?
If the goal is to secure every consumer dollar available in the lodging industry, it is
best to divide the market into segments and to figure out how to please each segment.
Marriott has done just that on a global basis. Marriott International operates more
than 2,600 hotels and resorts around the world and a growing list of websites in
support of its worldwide operations. The result is a conglomerate of lodging
accommodations that are recognized and trusted by businesses and consumers to
maintain quality, value, and service.

Teaching Ideas:
1. Ask students to analyze Marriott’s basic media strategy and how they use various
elements of the media to build brand equity.

Replies will be varied, but one basic premise should evolve from the analysis – Marriott
centers on the maximum number of customers for each market segment by using
demographics and psychographics as well as behavior patterns to develop its media
campaigns. Consistent service, convenience, and smiles of satisfaction are predominant
components of every ad, all designed to build equity for the company’s brand names.

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MAYO CLINIC

Summary
By managing patient experiences and focusing on the clinic’s environment, the Mayo
Clinic has built a strong brand image. The payoff is exceptionally positive word-of-
mouth and true customer loyalty which allow the Mayo Clinic to build a powerful brand
with very little advertising.

Discussion Questions:
1. How does branding a service differ from branding a product? How has
the Mayo clinic taken these differences into account?
Services are intangible, often making it difficult to communicate brand traits to
consumers. For example, positioning a brand on attributes is more difficult for
service providers. Service attributes are difficult to demonstrate and judging service
quality often requires subjective assessment. The Mayo Clinic overcomes these
difficulties by successfully managing the four service characteristics.

2. How does the Mayo Clinic reinforce its brand image without advertising?
By training doctors and service providers to be patient centered and creating an
atmosphere that makes patients comfortable, the Mayo Clinic strengthens its brand
image. In addition, word-of-mouth patient testimonials add credibility to the brand’s
strengths.

3. The Mayo Clinic has licensed its name for limited uses, including branded
content on various Web sites. In addition, the Clinic has lent its name to several
publications, including the Mayo Clinic Williams-Sonoma Cookbook. What are the
risks the Mayo Clinic assumes with licensing and co-branding efforts? What are the
benefits?
Co-branding and licensing the Mayo Clinic brand gives the clinic the opportunity to
reach new audiences and further build brand image. However, without careful
selection of branding and licensing partners, the Mayo Clinic risks tarnishing its
strong image by associating its name with unestablished products and ideas.

Teaching Ideas
1. Have students choose a service company that has a particularly strong brand. Ask
them to discuss why the brand is so strong? How does the brand communicate the
dimensions of quality that are important to the target customers?

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MOTOROLA

Summary:
Motorola's new Moto phone is used to illustrate how advertising helps to build a brand.
The company is a global leader in wireless, broadband, and automotive
communications technologies. Motorola manufactures and markets infrastructure
communications systems, customized radio communications and information
systems, and is a global leader in developing and deploying digital broadband
entertainment, communication and information systems for the home and for the
office. Motorola technology enables network operators and retailers to deliver
products and services that connect consumers to what they want, when they want it.
Motorola advertises all across the globe, targeting business, technology service
providers and consumers who fit its strategic plan. The Moto is the latest product
designed to capture consumer attention.

Discussion Questions:
1. In what way did Motorola revitalize its brand?
Motorola’s brand had strong brand awareness, but the brand meaning was not what
the company wanted it to be. While known for high quality cell phones, the brand
was not perceived as hip or cool. Other cell phone brands such as Nokia were
perceived as cool, which resonated strongly with the global customer base. By using
the Moto name and creating advertising that positioned Moto as cool and hip
lifestyle brand, Motorola was able to revitalize the brand with a positioning that was
more appropriate for target consumers of cell phones.

2. If you were to design an integrated marketing communications plan for the Moto in
the United States, using billboards, the Internet, radio, and print, what features and
benefits of the cell phone would you play up in each of these media? Why? What
needs to be consistent across the media? What needs to be different and in which
particular medium?
Theory suggests that the detailed, technical features must be made available via
specific media, allowing consumers to read at their own pace and to consider all of
the features and benefits of the product, with an opportunity to review information as
necessary. These elements of consumer learning suggest that Web pages and print
ads would be best suited to describe technical features. In contrast, sex-appeal types
of general benefits (“Isn’t this a cool phone?”) are best displayed vividly—for
example, via billboards, a page on the Web, perhaps radio, and probably TV. What
needs to be consistent is the brand name and the brand essence—the basics of what
the company wants people to know about its brand.

3. How would you modify your plans to promote the phone in China? In Finland (home
of Nokia)? In Brazil (big youth market)? What is Motorola doing now, according to
the video?
Motorola is familiar to people in these countries. The Chinese might find U.S.-built
phones attractive. They might appreciate value. Finnish customers might not be won
until the Moto is truly a cooler-looking phone than the Nokias that are available.

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The young Brazil crowd is a great exemplar of what Motorola seeks in general—
appealing to a younger segment.

Teaching Ideas:
1. Most students probably have a cell phone. Ask them why they chose a particular
brand/service. Ask students to go online in search of a new phone service. Would they
make the same choices? For example, would they choose the same brand? The same
type of call package? Would they base their decision on price? Why or why not?

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NIKE

Summary:
Four decades of effort and hard work have created a symbol that is recognized across the
globe – the Nike Swoosh. To be the biggest global sports brand, Nike focused on creating
an innovative corporate culture, producing the best athletic shoes, and conveying its deep
beliefs and values to consumers. The company has created a culture that is based on its
mission statement, which focuses on innovation. This focus has become razor sharp as
Nike realizes everything a company does communicates something about the brand.

Discussion Questions:
1. Nike’s brand awareness is very high, yet it still advertises heavily. Why?
Nike is not only trying to build brand awareness but also create brand relevance and
feelings that align with its promise of value. The company’s marketing
communications are intended to tell a story that highlights Nike as an innovative
company that delivers athletes great performing products.

2. How does the “Pyramid of Influence” work in building Nike’s brand?


Nike’s brand promise of value is to serve the athlete with great performing products.
By serving top, high-profile athletes, the top of the pyramid, Nike is able to
communicate to the entire customer base that they are delivering on their brand
promise of value.

3. How does Nike leverage secondary brand knowledge to strengthen its own brand?
Nike’s endorsements of famous athletes are an important part of their own brand
building. By associating the products with Michael Jordan, Nike is able to leverage
his brand equity as a top athlete. When Nike decided to use soccer as an important
piece of its global brand strategy, it used international soccer stars such as Ronaldo
to leverage existing brand equity to build its brand.

Teaching Ideas:
1. Discuss how Nike’s growth can be attributed to its targeting of diverse market
segments.

The three main segments are 1) performance athletes, 2) participant athletes, and 3)
those that influence the world and the culture of sport. A different promotional
strategy is executed for each segment with many advertisements focusing on lifestyle
first and the product second. Additionally, market research helped the company
develop the pyramid of influence, which showed that top athletes influence the
majority of the market. Consequently, the company spends millions on celebrity sports
endorsements.

2. The Nike Swoosh is one of the most recognized product symbols in the world, but that
doesn’t make the company’s products automatically successful outside the United
States. How does Nike approach these international markets?

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall 17


After more than one failure abroad, Nike determined that market research is a crucial
element of its global operations. For example, to increase market share in Europe,
Nike needed to produce a strong soccer product. The company achieved that goal by
soliciting the input of star global soccer athletes first, then producing a product that
met their needs. The product then translated to the broader marketplace.

18 Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall


NIVEA

Summary:
In 1911, NIVEA introduced a revolutionary product, NIVEA Crème, in a simple blue tin.
Still in its signature blue tin, today the Crème is the centerpiece of a wide range of
personal care products NIVEA markets, including everything from soap, shampoo, and
shaving products, to baby care products, deodorant, and sunscreen.

Discussion Questions:
1. Does Nivea standardize its brand across the globe or customize it to local
markets?
For the most part, Nivea uses a standardized marketing mix. However, the company
modifies some details, primarily advertising images and messages, to adapt to local
cultures and preferences.

2. Visit NIVEA’s website, www.nivea.com , and tour the sites for several different
countries. How does NIVEA market its products differently in different countries?
How does the company maintain the consistency of its brand?
Student responses will vary based on the sites they visit. Nivea changes small details
on each site to cater to local consumers. For example, the models on each site vary to
reflect the local culture and heritage. However, the basic information available on
each site consistently tells the Nivea story, communicating the brand’s history and
positioning.

Teaching Ideas:
1. Nivea is a product that has been sold in several countries under the same brand name
with the same core brand elements. Have students generate a list of products that
have also been able to do this. What do these products have in common? Then, have
them generate a list of products that have customized their brands to local markets.
Ask the students to arrive at some general conclusions about which types of brands
can be standardized across the globe and which must be customized.

2. In small groups, have students debate the pros and cons of standardized versus
adapted marketing mixes.

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall 19


NUDIE

Summary:
Nudie, a quirky little company in Australia, makes its own contribution to the fast-
growing natural foods market—all-natural fruit juices, fruit crushes, and smoothies that
provide a day’s fruit in every bottle. Amidst a sea of all natural products, Nudie relies on
a carefully designed program of personal selling and sales promotion to reach customers
and encourage them to try its products.

Discussion Questions:
1. With a small advertising budget, how is Nudie able to build its brand?
Nudie uses low-cost brand building tactics to support the Nudie brand. This includes
sales people representing the brand and creating point-of-sale materials that stores
can choose to display in stores where Nudie is sold. Without a lot of money for
advertising, Nudie must use any touch point with the consumer and retail trade to
communicate its brand image.

2. How does nudie use the sales force to communicate its brand?
First, Nudie hires people that it feel personally represent the brand. These are
people that are passionate about the product and are fun, honest, and confident. The
sales people personally demonstrate many of the traits of the Nudie brand. In
addition, the sales people drive cars with the Nudie brand and logo.

3. How does Nudie use point of sales materials to build its brand?
Nudie offers an array of promotional materials that stores can put on tables and
counters. These materials reflect simple and humorous imagery with consistent
colors and consistent messages that support the Nudie brand.

Teaching Ideas:
1. Have students reflect on their personal experiences with salespeople and list the
characteristics of the typical salesperson. Compare student responses. Are the images
generally positive or negative?

2. Have students select a company and then describe an ideal sales person. How does
this sales person reflect and support the company’s brand?

20 Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall


PROCTER & GAMBLE

Summary:
Procter & Gamble has one of the world’s largest and strongest brand portfolios, including
such familiar brands as Pampers, Tide, Ariel, Always, Pantene, Bounty, Folgers,
Pringles, Charmin, Downy, Iams, Crest, Secret, and Olay. Each brand is carefully
positioned to target a very specific segment of the market.

Discussion Questions:

1. Describe P&G’s brand hierarchy.


P&G is the name of the corporate parent, but it is not a brand that is supported by
marketing efforts. Rather, P&G manages a series of brands that are supported
independently. For example, Pampers’ brand is distinct from the Tide brand, even
though both are P&G products. Even within a product category, P&G has several
brands that have distinct brand identies. P&G has several brands of detergent that
serve the same core benefit but target different customer segments with different
needs and attitudes.

2. How can the Internet be used in brand building?


The Internet allows interaction between the consumer and the brand on the
consumer’s terms. For example, Pampers customers can access the Pampers
Website at any time they wish and read content on parenting that they choose to read.
In addition, Websites are far cheaper to deliver to consumers than traditional
advertising.

3. How does P&G use its variety of brands to build relationships with the right
customers?
By segmenting the market and having several detergent brands within each product
group, Procter & Gamble has an attractive offering for consumers in all important
preference groups. Based on consumer preferences, P&G can target specific groups
with additional product offers, building deeper relationships with satisfied customers.

Teaching Ideas:
1. Have students list products found in their homes. Ask them to consider what those
products say about them as consumers. How might a marketer use the list to segment
and target the students?

2. Ask students to list products that do not appear to be marketed to specific consumer
segments. Have them reconsider each product listed and look for more subtle forms
of positioning and segmentation. For example, although Coke is mass marketed, its
sub-brands (Diet Coke, Sprite, etc) each target a different consumer group.

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall 21


SNAPPLE

Summary:
Snapple is an example of a brand that started as an American success story, lost its way,
then re-discovered its image over a period of 20 years. When Snapple took off in the
1980s, it broke into the highly competitive soft drink market. It was the first beverage to
challenge Coke and Pepsi by creating a new category known as alternative beverages.
The product was revolutionary because it didn’t look like or act like a soda. In fact, the
company was able to produce Snapple without preservatives by using glass bottles and a
hot-fill production process. The result was a product and a brand that became known as
the “Best Stuff on Earth.” Snapple’s image is down to earth, off beat, and fun.

Discussion Questions:
1. Snapple was enjoying its position as a number one alternative beverage. What
happened to cause the company’s sales to decline? Why did the brand suffer?
In 1994, Quaker Oats bought Snapple for $1.7 billion and modified some core
aspects of the product, which resulted in a decrease in sales. In addition to increased
competition, Quaker Oats tried to reduce costs by cutting the number of flavors from
50 to 30 and using a warehousing system instead of distributors. The company tried
to model Snapple’s product line after Gatorade, one of the company’s other
successful products. Unfortunately, all of these changes detracted from the core
product and brand. Sales dropped by 8 percent.

The Snapple brand suffered because it was unable to maintain its image as fun and
quirky as a product sold by Quaker. By selling through warehouses instead of the
existing distributors and reducing the number of flavors, Snapple lost its position in
the market as an alternative beverage that is down-to-earth and offbeat.

2. What did Triarc do to rejuvenate Snapple’s image in the marketplace?


After purchasing Snapple, Triarc realized it needed to reconnect with the customer.
Marketing managers returned to the product’s origins that resulted in Snapple’s
success in the 1980s. New flavors were produced and new product lines that
translated the core Snapple image were released such as Elements and Whipper
Snapple. The distribution network was reinstated.

3. How did Snapple’s use of advertising play a role in the company’s initial success and
in its return to market favor?
Snapple used an out-of-the-box advertising campaign and adopted its own
personality symbols (the Snapple lady and various life-size fruits) to hawk its
products both on television and radio. The campaign attracted consumer attention
and the product’s attributes completed the “sale.” For its return to popularity,
creative marketing tactics were employed to reposition the brand and new youth-
oriented products opened up different market segments. All of these efforts
successfully turned Snapple around and sales returned to 1980s levels. Cadbury-
Schweppes bought Snapple in 2000. Snapple is continuing to keep up with the times

22 Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall


and striving to translate its core brand image into other competitive products with a
constant eye on the target markets.

Teaching ideas:

1. Have students think of a brand that has, in their opinion, declined in recent years.
Why did that brand decline? Could it have been prevented? If tasked with revitalizing
the brand, what would the student do?

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall 23


STARBUCKS

Summary:
Starbucks is more than coffee. It’s a coffee shop experience. The company purchases and
roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed,
Italian-style espresso beverages, a variety of pastries and confections, and coffee-related
accessories and equipment, primarily through its company-operated retail stores.
Starbucks also creates a welcome environment for its customers based on a mission to
establish Starbucks as the premier purveyor of the finest coffee in the world, while
maintaining uncompromising principles as it grows. Although the company recognized
early on that profitability is essential to future success, it entered the market in 1971,
when coffee drinking was on a downturn. Despite those market conditions, Starbucks was
launched with the idea of creating satisfied customers every time. Its success is now
heralded by market-watchers and its brand is recognized around the world. Starbucks
now has over 7,100 locations.

Discussion Questions:
1. Starbucks spends very little money on advertising. Given this limitation, how has
Starbucks built its brand?
Starbucks recognized that their company not only sells coffee but it also delivers an
in-store experience. Vital to this in-store experience is the interaction with the
employees, or baristas. By hiring the right employees, compensating them
appropriately, and giving them ownership in the firm, the employees become
communicators of the brand just as an advertisement would. Starbucks is an
experiential brand, and the company uses the in-store experience and word of mouth
to build the brand.

2. In the video, the manager conveys that a company owns a brand legally, but the
consumer owns the brand in the market. What do you think he means and do you
agree?
Perhaps this philosophy is the basis for Starbucks’ success, which has as its goal to
please every customer every time. Profitability is the result. However, more than
seeking fine coffees, Starbucks patrons visit with the idea that they are enjoying an
experience as well.

3. How does Starbucks continue to build equity for its brand name?
The company has built numerous strategic partnerships, such as those with Barnes &
Noble, Hyatt Hotels, and Kraft Foods, which have contributed to its growth and
brand equity. Additionally, Starbucks displays expansive social and environmental
consciousness through The Starbucks Foundation, which sponsors literacy programs
and contributes to community-based organizations.

Teaching Ideas:
1. Trademarks and packaging are hallmarks of Starbucks’ brand identity program. Do
you think a logo or a package make a difference to consumers?

24 Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall


The Starbucks logo has come to represent quality, service and value to consumers –
both in its retail stores and in the products it markets through other grocery and retail
chains. When a consumer sees a trusted logo and packaging, it logically contributes
to the final purchase decision. All brands have an identity, but the most powerful ones
are those that stand out because they have a distinct experience or personality
association in the consumer’s mind. Packaging, of course, is the last chance to grab
the consumer’s mind and can make a tremendous difference in the final purchase
decision.

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall 25


STRAWBERRYFROG - BEHIND THE SCENES OF AN ADVERTISING
CAMPAIGN

Summary:
Asics is a $1.3 billion global sporting goods manufacturer known for its technologically
advanced running shoes. Consumer desire for older Asics shoes led the company to
realize that it had a product people wanted, and it needed an agency to help manage the
brand; enter StrawberryFrog.

StrawberryFrog is one of the hippest new agencies in the advertising world and Onitsuka
Tigers are retro sneakers with a real history that appealed to a very specific and hip
demographic. The challenge was to find a way to reach the “sneakerhead” demographic
without actually selling to them or seeming too obvious. Budgets were a fraction of
competitor budgets, so the ongoing campaign focuses on Web sites, independent film
projects, cutting edge print campaigns, viral marketing, and innovative promotional
pieces. This video examines three of the most successful parts of the overall effort to
date: “The Running Fish Gutter,” ”Hero Breath,” and the “Kill Bill” promotion. As a
result of its hard work, StrawberryFrog has exceeded Asics’ expectations in Europe.

Discussion Questions:
1. How did StrawberryFrog use The Running Fish Gutter film to overcome the
challenge of reaching the “sneakerhead” demographic?
The short film successfully blended advertising and entertainment in order to attract
the “sneakerhead” demographic turned off by traditional mainstream media.
Distributing the message via the film festival circuit allowed the agency to reach the
demographic without having to rely on more traditional and more expensive venues,
like commercials. The agency also gave the film an online presence, as the
“sneakerhead” demographic is extremely Web literate. In the end, approximately
nine million people saw the film.

2. What role did public relations play in the success of the “Hero Breath” campaign?
StrawberryFrog designed the “Hero Breath” around the 2004 Olympics, designing
three innovative promotional pieces that told the story of three different shoes. The
agency then sent these promotional pieces to opinion formers and journalists writing
about the 2004 Olympics. The buzz surrounding the cans created enormous demand,
and the pieces eventually started appearing on eBay. The public relations effort
alone won the “Hero Breath” campaign a Silver Lion at Cannes.

3. In your own words, discuss the importance of coincidence and timing in a viral
marketing campaign. How did StrawberryFrog turn coincidence into a successful
ongoing promotional effort?
The story of the Onitsuka Tiger “Kill Bill” promotion is one of happy coincidences;
StrawberryFrog and Onitsuka were planning a special edition of the tai-chi shoe. At
the same time that Onitsuka was honoring the death of Bruce Lee, a long time Tiger
fan, Quentin Tarentino was in pre-production for Kill Bill. Because the Onitsuka
Tiger was the brand and provided products for the film, the agency could host film

26 Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall


premieres, capitalizing on the interest generated by the product placement. This led
to the agency developing additional promotional pieces to build on those
opportunities. Again, students should be aware of the concept of cultural literacy and
its importance to advertising and integrated marketing communications.

Teaching Ideas:
1. Have students (individually, in pairs, or in small groups) identify other forms of
successful product placement in the movies or television. Have each team explain to
the other students what made the placement successful. Next have the students try to
identify either a real or fictitious example of product placement when there is not a
match between the product and the movie or its audience. What harmful effects could
this have on the campaign? The brand? The advertiser? The agency?

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall 27


WELLBEING

Summary:
In 2003, Dan Wales and Matt Lennox opened their first Wellbeing restaurant. Their goal
was to offer consumers a healthy alternative to typical fast food options. In only a few
years, the chain has expanded to 18 stores and expects to nearly double that number in
the next two years.

Discussion Questions:
1. What are the intangible elements of Wellbeing’s brand?
Wellbeing serves healthy alternatives to traditional fast food, but the quality of
product is not the only element of the company’s brand. The brand also
communicates intangible elements such as convenience of buying food at Well-being
and recipes that are designed by nutritionists who understand the science of nutrition
better than the customer.

2. How does Wellbeing’s store design play a role in its brand building?
Wellbeing’s brand must communicate a certain level of trust because the customer
needs to feel confident that the store is using the best ingredients and preparing food
in a manner that is healthy. With lots of glass and a large window into the kitchen,
the store itself communicates a feeling of transparency in the food preparation
process. This helps reinforce the trust element of Well-being’s brand.

3. How does pricing play a role in Wellbeing’s brand building?


Well-being targets an educated consumer segment that is willing to pay a price
premium over traditional fast food restaurants for healthy food. Despire this
willingness, convenience and value of core parts of Well-being’s brand so charging
the firm charges a somewhat moderate price premium. By charging more, Well-
being might be able to profit in the short-term but jeopardize its brand in the long-
term.

Teaching Ideas:
1. Have students list companies targeting similar consumers in the United States.
Next have students compare the positioning statements of those companies to that of
Wellbeing?

2. Ask students to consider how altering the price decisions that Wellbeing has
implemented might impact the company’s product and positioning decisions.

28 Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall


WILD PLANET

Summary:
Wild Planet markets high quality, nonsexist, nonviolent toys that encourage kids to be
imaginative and creative and to explore the world around them. But Wild Planet sells
more than just toys. It sells positive play experiences. To better understand those
experiences, the company conducts a tremendous amount of consumer research to delve
into consumer buyer behavior. Wild Planet even created a Toy Opinion Panel to evaluate
current products and develop new product ideas. The panel helps Wild Planet to
understand why parents and kids buy the toys they buy.

Discussion Questions:
1. Is the Wild Planet brand the company’s only brand? If not, how are brands
organized in a brand hierarchy?
Wild Planet has an overall corporate brand that communicates positive play
experiences. This corporate brand has several product brands underneath it that
may or may not link directly to the Wild Planet brand. For example, the “Girls
Living in Style” or GLS is a brand that falls within Wild Planet’s family of toy
brands.

2. What customer segments is Wild Planet targeting and how does this affect its
brand management?
Wild Planet targets kids, both boys and girls, and parents, all of which behave quite
differently.. Thus, it must have a brand that has positive associates with all of these
target segments. How these segments judge the brand (based on quality, credibility,
consideration, and superiority) will be vastly different? For example, to a kid, the
brand must communicate fine and exciting. To a parent, the brand must
communicate that the toys are educational.

3. The video talks a lot about product research with target customers. What types of
research should the company do to better understand the customers’ perceptions of
the Wild Planet brand?
On the qualitative side, Wild Planet can test what free associations customers have
with the brand. Also, Wild Planet can ask consumers about their perceptions of Wild
Planet’s brand personality and values. On the quantitative side, Wild Planet can test
such factors as awareness, brand image based on scaling considerations, brand
responses and purchase intentions, and brand relationships such as loyalty and
substitutability.

Teaching Ideas:
1. Have students compare and contrast Wild Planet’s brand with other well known toy
brands such as Hasbro and Mattel? How are they similar and how are they different.
How has Wild Planet used its products and brand to differentiate itself from these
larger companies?

Copyright © 2008 Pearson Education, Inc. Publishing as Prentice Hall 29