Brand tribe; brand dilution; flagship brand; brand portfolio; copycat; brand extension;, brand image; brand revitalization; brand extension; brand awareness

• A company that owns a strong brand obviously wants to leverage it to sell as much as possible, but the very strategies used to purse this end often also bring the danger of [________].

• Particularly in today's market, consumers tend to view a [________] as an integral part of the product or service they are purchasing.  They are not only buying the actual product or service, but the status, prestige and perceived benefits associated with the organization that is doing the selling - intangible qualities that differentiate the item of choice from all other similar offerings in the marketplace. 

• Nokia is suing two Chinese handset makers which it alleges are making [________]devices.

• [________] is most commonly done by adding products closely related to those already sold using a particular brand.

• Managers seeking to strengthen consumer loyalty should seek to market brands in a greater number of segments, minimize competition within the [________], and foster higher quality perceptions of their brands in the minds of consumers.

• If members of the Lavazza [________] believe it to be a great coffee, then they might also place great faith in the Lavazza Company if it were to provide a guide to cafes and restaurants.

• Blimpie International Inc. said Monday it had embarked on a [________] program to transform the 1,600-unit chain from a "neighborhood sub shop" to a "contemporary deli."

• In doing calculations on cellular phone brands in Korea, the analysts found that simple [________] — getting the brand's name to pop up in consumers' minds—generates the largest return, followed by consumers' responding to the cachet of owning the brand.

• Asia Brewery Incorporated (ABI), the second-largest brewery in the country, has launched an integrated drive to revive its marketing for [________] Beer na Beer (BNB) in the Philippines.

• [________] is the total proposition that a company makes to consumers - the promise it makes. It may consist of features and attributes, benefits, performance, quality, service support, and the values that the brand possesses.

29. Fill in the gaps with appropriate phrasal verbs. Use the correct verb form.

to come by

to come down

to come off

1. The Commission is likely [________] against the takeover.

2. Surprisingly the high risk strategy [__________] for the company.

3. With the economy slipping into recession mortgages are hard [_________].

to pay up

to pay off

to pay down

1. Should we use the surplus to cut taxes or [________] the national debt?

2. Their effort and patience [_________] when the contract was signed in the long run.

3. Over 1,000 workers will [________] if the factory closes.

to roll back

to roll out

to roll over

1. The company [_________] its takeover plan last month.

2. The party promised [________] the government from areas where it has no useful role to play.

3. If you find another job with a company, just [_________] the money into the new retirement plan.

to knock off

to knock out

to knock around

1. It gives us a chance [_________] some new theories.

2. We can [________] 5% if you pay in cash.

3. A month without rain had [_________] the entire crop.

to carry through

to carry off

to carry forward

1. Your tax allowance for capital equipment can be [_______] into the next financial year.

2. The Government [_________] the reforms in the face of considerable opposition

3. When irrigation has no [__________] system, the evaporating water deposits a gradual build-up of salinization, which is eventually damaging to plant life.

to stick with

to stick by to

stick up

1. He decided to [_________] the failing business out of loyalty to his boss.

2. The government has [__________] the radical plan for economic reforms.

3. They [__________] the bank and stole tens of thousands dollars.

27. Solve the following crossword-puzzle

BRANDING

Across

4. the customers' ability to confirm prior exposure/knowledge of a brand when shown or asked explicitly about the brand

9. the range of brands held by a single company.

10. a unique set of functional and mental associations the brand aspires to create or maintain.

12. the financial premium derived from loyal target audiences committed to a brand and willing to pay a premium for that brand, as compared to a generic product or service in the same category

14. a measure of how similar, or different, various brands in the same category are perceived to be

15. a unique set of associations within the minds of target customers which represent what the brand currently stands for and implies the current promise to customers

17. the exposure of a brand to a broader target customer market, geographic market, or distribution channels

18. the weakening of a brand though its overuse, frequently as a result of ill-judged brand extension

Down

1. the strength of preference for a brand compared to other similar available brand options

2. the proportion of target customers which has prior knowledge of the brand

3. an imitative product

5. any identifying mark that officially represents a brand.

6. the use of two or more brand names in support of a new product, service or venture

7. a formal or informal group of consumers whom share the same awareness, passion and loyalty for a brand or a portfolio of brands.

8. the application of a brand beyond its initial range of products, or outside of its category

11. a brand that covers diverse kinds of products which are more or less related

13. a product that does not have a trademark and is sold without a company's name on it

16. the sum of all distinguishing qualities of a brand, drawn from all relevant stakeholders, that results in personal commitment to and demand for the brand

31.Study the following list of words relating to branding, that have recently appeared multiple times in newspapers, magazines, books, Web sites, and other recorded sources.

• brand name-droppingn. Attempting to impress others by frequently mentioning the brand names of goods that one owns.

• brand slutn. A consumer with no loyalty to a particular brand.

• passion brandn. A brand that resonates with consumers and makes them passionate about the brand's products or services.

• brand wagonn. Brand + bandwagon: The current trend towards using branding concepts and techniques in marketing.

• ghost brandn. A once-famous brand name that remains on sale but is no longer popular.

• brandalism n. The defacement of public buildings and spaces by corporate ads, logos, and other forms of branding (brand + vandalism).

• brandscape n. The brand landscape; the expanse of brands and brand-related items (logos, ads, and so on) within a culture or market.

• genericide n. The process by which a brand name becomes a generic name for an entire product category.

BRAIN DRAIN

32. Over the years, many myths about branding have taken hold in the world and spread like wildfire. Yet, the fact is: Branding is not one aspect of the corporate marketing campaign. Nor is it the combination of everything a business stands for. Branding is not created with a single, stand-alone event — rather it is created over time through a series of strategically thought-out actions. In groups of three or four take a few to introduce constructive, proactive branding principles and practical steps in brand development.

For example:

• developing a compelling name and logo.

• designing compelling trade dress.

to be continued by you…

GROUP WORK

33.Read the text and discuss what factors can influence a company’s brand value. Suggest your own examples.

Microsoft and GE: Not Old & In the Way

The annual Breakaway Brands survey of brand momentum has these two lumbering giants in the top ten.

Big blue-chip companies like General Electric and Microsoft do many things well, but showing up on lists of the hottest brands is typically not one of them. Yet these two lumbering giants both made their way onto brand consultancy Landor Associates' annual Breakaway Brands ranking - a comprehensive survey that measures consumer sizzle over a three-year period.

The study, shared with FORTUNE for the third year in a row, is not a measure of brand awareness but rather brand momentum. From 2003 to 2006, according to the researchers, both GE and Microsoft shot up to a degree that outpaced almost all of the 1,500 other brands surveyed.

How did these dinosaurs earn this kind of buzz? Microsoft's rise in brand stature is due to several factors, experts say. Releasing more consumer-friendly products like its game console Xbox - despite repair glitches earlier this year with the Xbox 360 - give it cachet that office-related brands like PowerPoint and Word, however dominant, just don't deliver. The work by the Bill & Melinda Gates Foundation, too, has had a positive effect on the brand's image.

Also helping the company's case has been the perception of a kinder, gentler Microsoft. Steve Ballmer may be loath to admit it, but the company's image as a fierce, rapacious monopolist has faded, especially as new corporate bogeymen like Googleand News Corp. are throwing their weight around. "[Microsoft] comes off as an underdog even though it is a behemoth," says Michelle Roehm, associate professor of marketing at Wake Forest University's Babcock Graduate School of Management.

General Electric's improvement is attributable almost entirely to its environmental efforts. The company's highly visible "ecomagination" campaign aims to more than double its annual research budget for cleaner technologies - like energy-efficient refrigerators and wind turbines from $700 million in 2005 to $1.5 billion in 2010.

Last year those research efforts generated $12 billion in revenues from 45 products and services. "They are trying to turn that entire ship into the ecovessel of the future," says Hayes Roth, chief marketing officer of Landor, a subsidiary of WPP Group's Young & Rubicam.

So how do you measure a brand, anyway? Landor, working with New York consultancy BrandEconomics, tapped Y&R's BrandAsset Valuator, a database of responses from 9,000 consumers evaluating 2,500 brands across 56 metrics, to ultimately come up with a "brand strength" value for each firm. Some brands were excluded, like nonprofits and media firms with their own distribution channel. The remaining brands were ranked by percentile growth of their brand strength; BrandEconomics then calculated the financial contribution brand heft added to the market value of each company.

As for the other names on the list, there are brands you would expect to see, like iPod, as well as a surprising trio of retailers. Shopping at Costco and T.J. Maxx is a treasure-hunt experience, which helps create an emotional bond with consumers, says Dan Stanek, EVP at consultancy TNS Retail Forward.

With consumer confidence headed south, those bonds will be tested in the months ahead. But Roehm, for one, has faith: "These brands are important to us no matter how fat our wallets are."

Fortune Magazine, November 1^st, 2007

Notes

1. The Bill & Melinda Gates Foundation (B&MGF) is the 4th largest transparently operated private foundation in the world, founded by Bill and Melinda Gates in 2000 and doubled in size by Warren Buffett in 2006. The primary aims of the foundation are, globally, to enhance healthcare and reduce extreme poverty, and, in the United States, to expand educational opportunities and access to information technology.

2. Steve Anthony Ballmer(born March 24, 1956) is the chief executive officer of Microsoft Corporation.

The following words and word combinations are used figuratively. Infer their meaning from the context.

lumbering giants, dinosaurs, behemoth, underdog, rapacious monopolist, corporate bogeymen, fat wallets.

Explain or paraphrase the following

1. brand momentum

2. brand heft

3. to measure consumer sizzle

4. to earn the buzz

5. brand stature

6. to deliver cachet

7. to throw one’s weight around

8. consumer-friendly products

9. a treasure-hunt experience

BUSINESS SKILLS

34. Study the BusinessWeek/Interbrand annual ranking of the 100 Best Global Brands (http://www.businessweek.com/magazine) and compare it with the one for the previous year (5 years ago). Suggest your own explanation for the success of the best winners and failure of the worst losers. What criteria are taken into account when ranking the value of the Best Global Brands?

35, Render the text in English.

Методика Расчета Ценности Брендов

Товарный знак – запоминающийся образ, символ, обозначение, позволяющие отличать товары и услуги одних производителей от однородных товаров и услуг других производителей.

Бренд – более широкое понятие, чем товарный знак. Если товарным знаком обозначается конкретный товар, зарегистрированный государственным органом, то бренд – это тот образ, который возникает в сознании потребителя при виде товарного знака. Под брендом чаще всего подразумевается известная марка, которая ассоциируется в сознании потребителя с конкретными товарами или услугами. Брэнд - это прежде всего обещание соответствия цены и качества, потребительских свойств товара (услуги) ожиданиям потенциальных потребителей. Обещание, позволяющее товару занять место - прежде всего в сознании потребителей, а уж затем и на рынке.

Чем брэнд отличается от торговой марки? В западных источниках можно найти от 8 до 22 "атрибутов силы брэнда". Если исключить тавтологию их можно свести к пяти основным:

Брэндированный товар способен завоевать большую долю рынка, чем аналогичный товар, продвигаемый под торговой маркой не являющейся брэндом.

Спрос на продукцию, продвигаемую под ведущими брэндами, растет более высокими темпами, чем спрос на товары, продвигаемые под торговыми марками не являющими брэндами.

Брэндированный товар в рамках своего сегмента можно позиционировать в более высоких ценовых диапазонах, чем аналогичный товар продвигаемый под торговой маркой не являющейся брэндом.

Наличие в портфеле компании сильных брэндов облегчает компаниям - производителям торг с независимыми дистрибьюторами, поскольку брэнды приносят больше прибыли с метра торговой площади.

У брэндов существенно большая часть - 25-30-40-50% потребителей являются абсолютно лояльными марке, т.е. готовыми скорее отказаться или отложить покупку, чем пойти на замену; в то время как у "обычных" торговых марок уровень абсолютной лояльности не превышает 10-15%.

 Товарный знак – мощное средство в  конкурентной борьбе. Он позволяет отделить конкретный товар от аналогов и закрепить за ним определенные ассоциации. Благодаря грамотной стратегии продвижения бренда товар приобретает известность на рынке и свою целевую группу потребителей. Это положительно влияет на рост продаж и позволяет несколько завышать цены по отношению к аналогичным товарам (в данном случае потребитель платит за гарантию качества продукта и определенный образ, которому он доверяет).

Изменение стоимости бренда является отражением эффективности маркетинговой стратегии, а оценка бренда служит инструментом для мониторинга.

Компания Interbrand является одним из лидеров мирового рынка в области оценки стоимости брэндов. С 2005 года компания проводит рейтинг российских брендов.

В 2006 году при формировании списка брендов для оценки компанией Interbrand Zintzmeyer & Lux AG был использован следующий принцип: повторная оценка брендов, вошедших в рейтинг 2005 года, а также мониторинг и оценка ведущей пятерки брендов в тех отраслях, которые были представлены в списке. В 2006 году длинный список насчитывал 200 наиболее ярких и значимых отечественных брендов. Отечественных значит созданных на территории России и для России.

Поскольку методика мирового и локального рейтинга едины, материнские компании не оценивались. Также не вошли в длинный список и авиакомпании: слишком сложно определить реальное влияние бренда на финансовые результаты.

Затем претенденты прошли через «фильтры отсечения».

Фильтр первый– география продаж. Чтобы попасть в мировой рейтинг, около трети выручки торговая марка должна получать за пределами своей страны. Чтобы попасть в российский рейтинг, марка должна быть федеральной: присутствовать и продаваться не только в Москве, но и в других регионах.

Фильтр второй– доступность финансовой отчетности о деятельности компании, в открытых источниках (например, на сайте компании). Важно отметить, что при составлении рейтинга, команда оценщиков не запрашивала данные у самих компаний-претендентов. Как и в 2005 году именно этот фильтр оказался наиболее тяжело преодолимым как для отдельных брендов, так и для целых отраслей.

Фильтр третий– в рейтинг должны были войти только 40 брендов. Именно такое число участников было решено сделать традицией.

Как и в 2005 году, при оценке учитывали специфику российской экономики, в которой главным акционером многих лидеров отраслей является государство.

Поддержка такого мощного акционера позволяет получить некоторые привилегии, конвертируемые в финансовые результаты. Понятно, что в таких случаях роль бренда в доходах компании ниже. Доля государства в уставном капитале компании-владельца бренда свыше 50% компенсировалась самым низким показателем роли бренда.

Interbrand Corp. оценивает стоимость торговой марки на основе метода дисконтированных будущих прибылей. Оценка бренда включает в себя три элемента:

• анализ рынка (с целью определить условия, в которых функционирует компания - владелец бренда, и уровень конкурентной борьбы);

• финансовый анализ для идентификации доходов, создаваемых тем бизнесом, который использует бренд. Необходимо установить поступления, относящиеся к маркированному данным товарным знаком продукту, и выявить долю доходов, обеспеченную непосредственно брендом, –добавочную стоимость, принесенную именно брендом.

• определение рисков, связанных с брендом, для определения ставки дисконта.

На первом этапе прогнозируется денежный поток, который создается всеми нематериальными активами. Расчет денежного потока производится следующим образом: на основе данных J.P.Morgan, Citigroup и Morgan Stanley эксперты Interbrand Corp. делают пятилетний прогноз объемов выручки и продаж брендов, затем вычитают операционные расходы, налоги и затраты на привлеченный капитал. В результате получают доход от нематериальных активов. На втором этапе в денежном потоке, созданном нематериальными активами, выделяется доля, созданная именно брэндом. Для этого определяется, в какой степени брэнд воздействует на ключевые факторы спроса. На третьем этапе анализируется сила бренда, что позволяет определить профиль риска для прогноза прибыли. При этом учитывают лидерство на рынке, положение по отношению к конкурентам, стабильность и способность бренда преодолевать географические границы и культурные барьеры. Критерий «сила бренда» дает еще одну поправку, которую вносят в прогноз доходов, чтобы вычислить чистую текущую стоимость бренда.

Оценка стоимости бренда может быть составной частью оценки эффективности компании или отдельных подразделений. Тем не менее, при оценке товарного знака необходимо учитывать, что сам по себе он не создает потребительскую стоимость. Однако реклама товарного знака популяризирует потребительские свойства продукта, способствуя формированию спроса и, как следствие, повышению цены на него.

по материалам BusinessWeek Россия №40, 30 октября 2006

www.intelis-ocenka.ru

36.Make mini-presentations on the following topics. (Portfolio entry)

1. Procter & Gamble: staying at the forefront of branding and brand management.

2. Sony: slipping from the ivory tower. (A classic example of what a brand should not do to erode its own brand standing in the market place.)

3. How far can a brand stretch. Brand extensions that companies could easily do without.

4. Rebranding – waking up to a new world.

5. How to create customer loyalty?

6. Brand combos – “one-plus-one equals three.”

7. Branding and celebrity endorsements

get real

37. 1) Make a short presentation on Ford Motors’ brand portfolio. Visit http://money.cnn.com/galleries/2007/autos/0710/gallery.ford_strategy//index.html

(Ford’s brand makeover).

2) Read the article and express your own opinion on the problem raised in it.

Why Global Brands Work

Ford has finally woken up to what Toyota knew a long time ago: the power of a singleglobal brand.

Over twenty years ago, Harvard professor Theodore Levittpraised Japanese manufacturers for their focus on "what every consumer in the world is seeking: world-class modernity at affordable prices." Either becausethey didn't understand regional differencesin consumer preferences or out of self-confidence, Toyota, Nissan and Honda sold standard products under a single brand umbrella.

For decades, Ford adapted its manufacturing platforms, features, and model names from one country to another. The results: added manufacturing and supply chain costs that strained consumers' willingness to pay; a balkanized bureaucracy in which regional managers exaggerate the need for local adaptations to defend their turf; and a deteriorating market share, financial performance and stock price.

Ford was once one of the ten most valuable brands in the world. They’re no longer on that list, but Toyota now is. How did Toyota—and the other nine companies—do it? There are five characteristics that all top global brands have in common:

1. The same positioning worldwide. This provides a combination of functional product quality and innovation with emotional appeal.

2. A focus on a single product category.

3. The company name is the brand name. All marketing dollars are concentrated on that one brand.

4. Access to the global village.Consuming the brand equals membership in a global club.

5. Social responsibility. Consumers expect global brands to lead oncorporate social responsibility, leveraging their technology to solve the world's problems. Think Nestle and clean water. Ford has a proud history. Its name recognition is strong worldwide. The chairman is committed to the environment.

Many consumers are no longer considering Fords when buying their new cars, but they are predisposed to giving Ford another chance. Fords worldwide should henceforth have a common look, feel and brand essence.

Can Ford recover? The answer lies in whether the common vehicle platforms developed for the new strategy prove to be truly global in design or merely more of the same Detroit-centric product that have caused Ford's market shares around the world to erode.

What do you think? Can Ford rehabilitate its global brand status?

HBS Working Knowledge Newsletter, October 16, 2007

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