Strategic Brand Management
Brand Value Chain & Testing
Evaluating the Mayo Clinic
600k + in- and out-patients/yr Founded in 1800 by Dr William Woral Mayo & two sons. Pioneered group practice = Two heads are better than one Two extension facilities in 1980s (Scottsdale,Jacksonville) Mayo Graduate School of Medicine one of largest graduate education centers
Brand Value Chain & Testing
Evaluating the Mayo Clinic
Worldwide leader in patient care, research and education Renowned for world class specialty care Earned a reputation as world class specialty care Most medical staff participate in research 1950 Nobel Prize winners, Drs Kendall and Hench discovered Cortisone
Brand Value Chain & Testing
Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies
Value Stages
Marketing Program Investment
-Product -Communication -Trade -Employee -Other
Customer Mindset
-Awareness -Associations -Attitudes -Attachment -Activity
Market
Performance
Shareholder
Value
-Stock Price -P/E Ratio -Market Capitalization
-Price Premiums -Price Elasticities -Market Share -Expansion Success -Cost Structures -Profitability
Brand Value Chain & Testing
Evaluating the Mayo Clinic 96 Brand Equity Study
Awareness 84.3%, 90+% among 45+ Specialty ranking Top ranked at 15.4% (next at 5.3%) ..go anywhere in US for serious condition which required highly specialized care.. Strongest Brand Associations 1) Scientific Research, 2) Cancer Treatment, 3) Cardiac Care
Brand Value Chain & Testing
Evaluating the Mayo Clinic 96 Brand Equity Study
Associations (Thoughts & Feelings)
Integrity (longevity, heritage, wisdom of staff, trust in institution), Leadership (modernity, premium quality, international prestige) Professionalism (staff held high standards, were intellectually sophisticated and efficient) Commitment to health & healing (reputation for medical discoveries, preventative medicine, tangible results) Exclusivity
No Negative Associations
Brand Value Chain & Testing
Evaluating the Mayo Clinic 96 Brand Equity Study
Product Perception ISSUE
Outside Midwest perception of only for rich/famous Known for Tertiary Care (Not primary family care) Thus, not like me
Brand Value Chain & Testing
Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies
Value Stages
Marketing Program Investment
Customer Mindset
Market
Performance
Shareholder
Value
Multipliers
Program Quality
-Clarity -Relevance -Distinctiveness -Consistency
Marketplace Conditions
-Competitive reactions -Channel Support -Customer size & Profile
Investor Sentiment
-Market Dynamics -Growth Panel -Risk Profile -Brand Contributions
Brand Value Chain & Testing
Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies
Value Stages
Marketing Program Investment
-Product -Communication -Trade -Employee -Other
Customer Mindset
-Awareness -Associations -Attitudes -Attachment -Activity
Market
Performance
Shareholder
Value
-Stock Price -P/E Ratio -Market Capitalization
-Price Premiums -Price Elasticities -Market Share -Expansion Success -Cost Structures -Profitability
Brand Value Chain & Testing
Evaluating the Mayo Clinic 96 Brand Equity Study
Communication
Word of Mouth is influential in selecting specialty care 1/3 know at least one Mayo patient
Brand Value Chain & Testing
Evaluating the Mayo Clinic 96 Brand Equity Study CONCLUSIONS
Mayos Brand Equity is Powerful and Precious As perceived by patients and consumers, Mayos Essence:
Excellence The best medical, personal and technical expertise in patient care and education Care Compassionate patient care and education resulting in physical, mental and emotional well-being Cooperation Care and education in cooperative and inclusive relationships among colleagues and with the patient, the patient, the patients family and consumers Enlightenment (Wisdom) Commitment to pioneering knowledge, insight, and truth through research and education
Brand Value Chain & Testing
Evaluating the Mayo Clinic 96 Brand Equity Study CONCLUSIONS
Mayos Brand Equity is Powerful and Precious By living out these standards fully and consistently, the Mayo clinic had engendered in patients and consumers a sense of confidence, safety, hope and serenity
Brand Development
Consumer Driven Marketing Cycle
Succeed And Improve Assess Performance Map the Marketspace Select Most Valuable Customers
Actions
Execute the Tactical Plan
Strategies Tactics
Choose a Winning Positioning Brand saturation High Cost
Define Performance Measures
Build Operational Capabilities
Create the Tactical Plan
Mark Kerback, Kerback & Company
Brand Value Chain & Testing
Evaluating the Mayo Clinic 96 Brand Equity Study CONCLUSIONS
A Satisfied national patient base is VITAL to maintaining preference Vital to developing guidelines that protected the brand 1999 created Office of Brand Management
Responsible for the protection & enhancement of the Mayo Clinic brand (+ monitoring) Developing Brand Management Guidelines & a Positioning statement Implementing a Branding System (include education) Build awareness of Brand Management within the organization Research extension opportunities & risks
Brand Value Chain & Testing
Evaluating the Mayo Clinic 96 Brand Equity Study CONCLUSIONS
Example of Brand Management Guidelines:
Each new/existing Mayo Clinic branded product, service or business relationship meets 4 criteria:
Using name must be owned by Mayo or under full control Use to solely assure success of service/product not appropriate Not to be used in a manner that trivalizes the name/institution Not shared or sold
Brand Value Chain & Testing
Get to the Consumer Insight/Core Value by
Laddering up to it Keep asking WHY, WHY, WHY
Is Mayo Resonating with Consumers Central Beliefs/Core Values? What Consumer Insight might they center their equity on?
Strategic Brand Management
FINAL GROUP CASE STUDY PROJECT Due November 15th
Strategic Brand Management
New Brand Development Project (due WK10) Work in Four Groups of 2 and select from product categories provided Develop a new brand marketing plan in an existing category (Use framework attached) Develop the key insight, concept & positioning Ensure the following are ALSO included:
Your VISION Launch Rationale Business analysis (Competitive and market analysis, SWOT etc) Target audience, Key Competitive insights and Core Values (use CBBE Pyramid) Projected share and financials (supported, P&L examples to be provided) Proposed Marketing Objectives, Strategies and Tactics
Strategic Brand Management
RECOMMENDED TIMETABLE Select groups and categories Oct18th (data up Oct 20th); assign group tasks; conduct research searches Oct 25th: Out line marketing plan to share with the group; Nov 1st: Having reviewed available data; hypothesize financials, consumer insights, positioning and concepts (can turn in roughs to prof for feedback) Nov 8th: Draft marketing plan deck and begin conversion to power point presentation Nov 15th: Turn in completed plan and conduct presentations. FINISHED PRODUCT: One 10-15 Minute presentation (docked a grade if over 15 minutes!!) One marketing plan document (main text to be NO MORE than 5 pages.. Appendix with charts, graphs, data and research encouraged) Visuals encouraged.
Your Marketing Plan
Purpose
Define your core objectives, strategies and tactics in concise summary Management selling tool for brand investment Document and sell or acknowledge results Provide solid, focused direction to corporation and brand support Define Brand evaluation objectives Live Working Document
Measuring Brand Equity
Objective: To guarantee assets/liabilities are nurtured and managed (loyalty, awareness, perceived quality, propriety brand assets) Develop Focused Master Plan Create Long term Strategic Orientation
Brand Marketing Process
Analysis & Long Term Strategy Measure Brand Equity
Financial Health Marketing Mix
Business Analysis
SWOTs
Market & Competitive Trends Consumer Insights
Strategic Implications & Strategy Development
Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role
Establish Positioning Concept
Three Year and ANNUAL Objectives
What do I want to Accomplish Objectives Should be S.M.A.R.T
Annual Plan & Execution
ANNUAL STRATEGIES
How will the objectives be achieved?
Marketing Plan Execution
Market Research Consumer & Retailer Promo Public Relations Physical Product Package Pricing Advertising Media Functional Objectives & Strategies And Tactical Plan
Brand Marketing Process
Measure Brand Equity Analysis & Long Term Strategy Analysis & Long Term Strategy
Financial Health Market & Competitive Trends Consumer Insights
Marketing Mix
Business Analysis
SWOTs
Strategic Implications & Strategy Development
Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role
Establish Positioning Concept
Brand Marketing Process
Three Year and ANNUAL Objectives
What do I want to Accomplish Objectives Should be S.M.A.R.T
Establish Positioning Concept
Annual Plan & Execution
ANNUAL STRATEGIES
How will the objectives be achieved?
Marketing Plan Execution
Market Research Consumer & Retailer Promo Public Relations Physical Product Package Pricing Functional Objectives & Strategies And Tactical Plan
Advertising Media
Brand Marketing Process
Analysis & Long Term Strategy Measure Brand Equity
Financial Health Marketing Mix
Business Analysis
SWOTs
Market & Competitive Trends Consumer Insights
Strategic Implications & Strategy Development
Core Competencies, External Opportunities Brand Vision Brand Strategy Strategic Role
Establish Positioning Concept
Three Year and ANNUAL Objectives
What do I want to Accomplish Objectives Should be S.M.A.R.T
Annual Plan & Execution
ANNUAL STRATEGIES
How will the objectives be achieved?
Marketing Plan Execution
Market Research Consumer & Retailer Promo Public Relations Physical Product Package Pricing Advertising Media Functional Objectives & Strategies And Tactical Plan
Measuring Brand Equity
Market Trends Checklist
Market Conditions
Household Pentration Seasonality Regionality (CDI/BDI)
Retail Conditions
Volume & Share
Industry definition & served market Category Size & growth rates Category Segmentation, trends, importance to category Share of market by brand & by segment
Channels of Distribution Product Sourcing/availability Importance of the category to the retailer Retailer focus on private label Retailer influence over category marketing activity
Consumer Conditions
Substitute products Changes in tastes/attitudes/needs
Government Conditions Regulations & Reqs. Legislative issues
Measuring Brand Equity
Assessing Competitive Trends
Competitor Identification Key direct competitors Competitive Scope: Regional/National/Global
Importance in portfolio Level of product activity Level of marketing focus Financial resources
Competitor Focus
Competitive Financials
Advantage
P&L analysis Cost Structure Spending Profitability
Competitive Strategy
Overall mission/priorities Target Audience Brand Turf/Positioning Class of Trade (COT) importance
Brand Value Chain & Testing
Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies
Value Stages
Marketing Program Investment
-Product -Communication -Trade -Employee -Other
Customer Mindset
-Awareness -Associations -Attitudes -Attachment -Activity
Market
Performance
Shareholder
Value
-Stock Price -P/E Ratio -Market Capitalization
-Price Premiums -Price Elasticities -Market Share -Expansion Success -Cost Structures -Profitability
Brand Value Chain & Testing
Use The Brand Value Chain to determine Measurement Tactics and Resulting Marketing Strategies
Value Stages
Marketing Program Investment
Customer Mindset
Market
Performance
Shareholder
Value
Multipliers
Program Quality
-Clarity -Relevance -Distinctiveness -Consistency
Marketplace Conditions
-Competitive reactions -Channel Support -Customer size & Profile
Investor Sentiment
-Market Dynamics -Growth Panel -Risk Profile -Brand Contributions
Measuring Brand Equity
SWOT Purpose: to guide thinking and help distill the key issues and opportunities facing the Brand AND the category Can be done in competitive analysis STRENGTH
Inherent source of competitive advantage within the Brand (of genuine relevance to the consumer)
WEAKNESS
Inherent cause of competitive disadvantage within the Brand (of genuine importance to consumer)
INTERNAL to the brand Caused by the inherent nature of the Brand or our management of it
Measuring Brand Equity
SWOT Purpose: to guide thinking and help distill the key issues and opportunities facing the Brand AND the category Can be done in competitive analysis
EXTERNAL to the brand Markets, competitors, retail, social trends etc
OPPORTUNITY
Unsatisfied or poorly satisfied need in the marketplace which our company can perform profitability
THREAT
Potential problem from external source which could undermine our Brands competitive position if not addressed.
Consumer-Based Brand Equity Pyramid
Consumer Acceptance Cycle
THIS is Where the Insight Lives
ConsumerBrand Resonance Consumer Judgments
4 Intense, Active Loyalty
Consumer Feelings Brand Imagery
3 Positive Accessible Reactions
Brand Performance
2 Points of Difference
Brand Salience
1 Deep Broad Brand Awareness
Consumer-Based Brand Equity Pyramid
Loyalty Attachment Community Engagement Quality Credibility Consideration Superiority
Brand Characteristics & Secondary Features Product Reliability, Durability & Serviceability Service Effectiveness, Efficiency, & Empathy Style and Design; Price
Resonance Judgments
Performance
4 Brand Relationships (WHAT About You AND ME?)
Warmth, Fun Excitement, Security, Social Approval, Self-Respect
Feelings
3 Brand Response (WHAT About You?)
User Profiles Purchase and Usage Situations Personality & Values History, Heritage, & Experiences
Imagery
2 Brand Meaning (WHAT Are You?)
Category Identification Needs Satisfied
1 Brand Identity (WHO Are You?)
Salience
Insight to Positioning
State the thought you wish to implant in your targets mind: TO (core target audience), (Brand Name), IS THE (frame of reference) Power THAT (owned benefit) Positioning LINKS to BECAUSE (support or reason to believe) Consumer Insight
Introducing (Brand Name) Succinct insight driven benefits (benefit statement)
Consumer Insight statement (AHA not fact). Introducing New Brand. What it does (relevant core benefit to consumer). Reason to believe (how/why it does what it does). Reprise of positioning in closing tag.
Your Marketing Plan
Fundamental Statement of Purpose
What do I want to do (grow X% to $$) Objectives must be SMART
Specific Measurable Appropriate Realistic Timebound
Long Term and Short term
Brand Development
Consumer Driven Marketing Cycle
Consumer Insight: Singularly focused need, desire or want Strategies: Fact Based choices on who, how and why Tactics: Activities/capabilities what, where and when Actions: Execution, feedback, assessment, and improvement
Actions
Strategies
Brand Tactics saturation High Cost
Mark Kerback, Kerback & Company
YOUR MARKETING PLAN
What is your Big Inspiring Vision? How will your consumer insight translate across ALL elements of your plan?
Positioning Brand Essence Strategies and Tactics
WHO is your target REALLY (pscyh, demo) In your SWOT: What is going on competitively and in the Market Place? WHY should I invest in your launch????????
