Swot Analysis of Puma

Brand Management

LSMS 2003

Prof : I. Schuiling

Structure

I. Introduction

II. Building brand equity

III. Launching the brand

IV. Growth through brand extension

V. Building brand architecture

VI. Managing brand portfolios

VII. Handling name changes and brand transfers

VIII. Brand turnaround and rejuvenation

IX. Managing global brands

X. Financial valuation of brands

I. Introduction

A. BRAND

DEFINITION

Brands are everywhere

Brands have become a major player in modern society. They penetrate all spheres of our life: economic, social, cultural, sporting, even religion. They can be analyze through a number of perspectives: macroeconomics, microeconomics, sociology, psychology, anthropology, history, semiotics, philosophy,...

This book tries to find how best to manage brands for profit. Since brands are now recognized as a part of company's capital, they should be exploited.

1. American Marketing association

A brand is a name, term, sign or symbol or design or combination of them intended to identify the goods or services of seller and to differentiate them from those of competition.

⇒ It is too restrictive!

2. Optimal brand definition

A brand is a name, a sign or symbol which serve to identify and differentiate a product versus other ones and that is registered in the minds of consumers as a set of tangible and intangible benefits. (A name that influences buyers en bref)

Tangible: benefit link to the product itself. Ex: Design, performance, innovation.

Intangible: the strength that the brand has is our mind. When you are using Apple product something you can't see or measure, Ex: part of a community, status, trendy.

⇒ We have a strong brand when we have tangible and intangible benefits.

⇒ When you look at different brands you have:

Different personalities, quality perceptions, attitudes toward the brand, different feelings from consumers... Power of the brand is what they mean in the consumer's mind. Ex: Puma, Addidas, Nike are competitor but have different personalities.

3. Other definition (Keller)

The classic definition of brand: "a brand is a set of mental associations, held by the consumer, which add to the perceived value of product or service" (Keller, 1998)

The associations should be UNIQUE (exclusivity), STRONG (saliency) and POSITIVE (desirable). !complète la definition du dessus!

You can have "negative" association, Ex: Costa.

4. A brand is more than a product

* A brand is the added value given to a product

* The idea is to create perceived difference among products.

⇒ The power of a brand resides in the mind of consumers

Ex: Mercedes (Important to understand the difference between the product, the tangible part, and the brand)

5. The world's top brands?

* Coca-Cola, IBM, Microsoft.

* The value of the brand (financially) isn't included in the balance sheet and it should be!

* Unilever is a company not a brand name.

* The 7 strongest brand in Belgium, brand that are the best evaluated:

1. Belgacom 4. Mobistar 7. Spa

2. Proximus 5. Delhaize

3. Colruyt 6. Quick

6. When do we have brands?

Reduction of risk

Perceived risk Brands

* In fact when there is no risk, there is no brand

* What type of risk perceived?

- Economic (linked to the price)

- Functional (linked to the performance)

- Experiential or psychological (linked to our self-concept)

- Social (linked to our social image)

- Financial

⇨ Having a brand, reduce the risk.

Ex: teenagers => brand => reduce social risk

* Need to create passion, engagement, attachment ("love brand, passion brands, emotional brands...")

* No fans- No bran. Companies are creating community. Ex: pages for Fan on Facebook.

* Example of LEGO:

- 1 million members

- 40 ambassadors (they have interaction with their fan).

- 1% of profit of new ideas: if consumers give new ideas that will ne launch.

* Pharmaceutical industry: difficulty to create a Brand.

* Industry of meat, fish also no clear brand (Product where we don't have any risk = commodities). Because difficult to differentiate, no certain risk to reduce (Brand: find a certain quality, guarantee).

⇒ A brand is an important contract between