BRAND NAME PRODUCTS New Strategic Brand Management
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new_strategic_brand_aw:Layout 1 6/12/07 16:25 Page 1 “New exciting ideas and perspectives on brand building are offered that have been absent from our literature.” 4TH “New exciting ideas and perspectives on brand building!” Philip Kotler, S C Johnson & Sons Distinguished Professor of International Marketing, Northwestern University, EDITION Kellogg School of Management, USA Philip Kotler “Kapferer continues to be on the leading edge.” Earl N Powell, President, Design Management Institute, Boston, USA BRAND MANAGEMENT THE NEW STRATEGIC “Managing a brand without reading this book is like driving a car without your license.” 4TH EDITION Haesun Lee, Senior Vice President of Marketing, AMOREPACIFIC Co, Korea “The best book on brands!” Design Magazine “One of the definitive resources on branding for marketing professionals worldwide.” The Economic Times, India “One of the best books on brand management. Kapferer is thought-provoking and always able to create new insights on various brand-related topics.” THE NEW Rik Riezebos, CEO Brand Capital and director of the European Institute for Brand Management Adopted by leading international business schools, MBA programmes and marketing practitioners alike, The New Strategic Brand Management is simply the reference source for senior strategists, positioning professionals and postgraduate students. Over the years it has not only established a reputation as one of the leading works on brand strategy but has also become synonymous with the topic itself. This new edition builds on its impressive reputation and keeps the book at the forefront of strategic brand thinking. STRATEGIC Revealing and explaining the latest models used by companies worldwide, author Jean-Noël Kapferer covers all the leading issues faced by brand strategists today, supported by an array of international case studies. With both gravitas and intelligent insight, this book reveals new thinking on crucial topics including: • growth in saturated markets; • positioning private labels and store brands; • decommoditisation; • globalisation and market adaptation; • innovation in emerging markets; • co-branding strategies; • brand rejuvenation and turn around; • internal branding and corporate branding; BRAND • managing brand consistency and diversity; • financial evaluation of brands. Moving beyond marketing, The New Strategic Brand Management addresses the bigger picture, integrating other components such as business models, HR and finance into brand building. It analyses the specifics of brands in B2B, services, distribution, the internet and the luxury sector. It extends the brand concept to celebrities, universities, towns MANAGEMENT and nations. KAPFERER Jean-Noël Kapferer is one of the very few worldwide experts on brands. His book stands out from others with its unique insights, its style of exhaustive analysis and its original perspectives, stemming from his strategic vision, and his international background and experience. A professor of marketing strategy at HEC Paris, he holds a PhD from Northwestern University (USA) and is an active consultant to many European, US and Asian corporations. He also gives executive seminars in the US, China, Japan, Korea and India. He is the author of six books on branding, advertising and communication, including Reinventing the Brand, also Creating and sustaining brand equity long term published by Kogan Page. You can contact him at www.kapferer.com. £35.00 ISBN: 978-0-7494-5085-4 US $70.00 Kogan Page Kogan Page US J N KAPFERER 120 Pentonville Road 525 South 4th Street, #241 London N1 9JN Philadelphia PA 19147 United Kingdom USA www.kogan-page.co.uk Branding / Business and management I THE NEW STRATEGIC BRAND MANAGEMENT ii ‘After reading Kapferer’s book, you’ll never again think of a brand as just a name. Several exciting new ideas and perspectives on brand building are offered that have been absent from our literature.’ Philip Kotler, Northwestern University ‘A real thought provoker for marketing and business people. Strategic Brand Management is an essential tool to develop strong marketing strategy.’ P Desaulles, Vice President, Du Pont de Nemours Europe ‘A solid contribution written with depth and insight. I recommend it to all those who desire a further understanding of the various dimensions of brand management.’ David A Aaker, University of California at Berkeley, and author of Managing Brand Equity ‘The best book on brands yet. It is an invaluable reference for designers, marketing and brand managers.’ Design Magazine ‘‘One of the best books on brand management. Kapferer is thought provoking and always able to create new insights on various brand related topics.’ Rik Riezebos, CEO Brand Capital and director of EURIB/European Institute for Brand Management ‘One of the definitive resources on branding for marketing professionals worldwide.’ The Economic Times, India ‘Jean Noel Kapferer’s hierarchy of brands with six levels of brands is an extraordinary insight.’ Sam Hill and Chris Lederer, authors of The Infinite Asset, Harvard Business School Press ‘A fresh perspective on branding that is easy to understand and inspirational. I believe it to be the finest book on the subject in the marketplace today.’ Marsha Lindsay, President and CEO, Lindsay, Stone and Briggs ‘The treatment of brand-product strategies, brand extensions and financial evaluations are also strengths of the book.’ Journal of Marketing ‘A “think book”. It deals with the very essence and culture of branding.’ International Journal of Research in Marketing ‘An authoritative analysis about establishing an identity and exploiting it.’ Daily Telegraph ‘A full and highly informative text… well written and brought to life through numerous appropriate examples.’ Journal of the Market Research Society III THE NEW STRATEGIC BRAND MANAGEMENT Creating and Sustaining Brand Equity Long Term JEAN-NOËL KAPFERER London and Philadelphia iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and authors cannot accept responsi- bility for any errors or omissions, however caused. No responsibility for loss or damage occa- sioned to any person acting, or refraining from action, as a result of the material in this publication can be accepted by the editor, the publisher or any of the authors. First published in France in hardback in 1992 and in paperback in 1995 by Les Editions d’Organisation Second edition published in Great Britain in 1997 by Kogan Page Limited Third edition 2004 Reprinted 2005, 2007 Fourth edition 2008 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 120 Pentonville Road 525 South 4th Street, #241 London N1 9JN Philadelphia PA 19147 United Kingdom USA www.kogan-page.co.uk © Les Editions d’Organisation, 1992, 1995, 1997, 2004, 2007, 2008 The right of Jean-Noel Kapferer to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. ISBN 978 0 7494 5085 4 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Kapferer, Jean-Noël. New strategic brand management : creating and sustaining brand equity long term / Jean- Noël Kapferer. – 4th ed. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-7494-5085-4 (alk. paper) 1. Brand name products–Management. I. Title. HD69.B7K37 2008 658.8'343–dc22 2007037849 Typeset by Saxon Graphics Ltd, Derby Printed and bound in Great Britain by MPG Books Ltd, Bodmin, Cornwall V Contents List of figures ix List of tables xii Preface to the fourth edition xiv Introduction: Building the brand when the clients are empowered 1 Part One: Why is branding so strategic? 7 1. Brand equity in question 9 What is a brand? 9; Differentiating between brand assets, strength and value 13; Tracking brand equity 15; Goodwill: the convergence of finance and marketing 18; How brands create value for the customer 19; How brands create value for the company 23; Corporate reputation and the corporate brand 26 2. Strategic implications of branding 31 What does branding really mean? 31; Permanently nurturing the difference 35; Brands act as a genetic programme 36; Respect the brand ‘contract’ 38; The product and the brand 39; Each brand needs a flagship product 41; Advertising products through the brand prism 42; Brands and other signs of quality 44; Obstacles to the implications of branding 45 3. Brand and business building 51 Are brands for all companies? 51; Building a market leader without advertising 52; Brand building: from product to values, and vice versa 55; Are leading brands the best products or the best value? 57; Understanding the value curve of the target 58; Breaking the rule and acting fast 58; Comparing brands and business models: cola drinks 59 vi CONTENTS 4. From private labels to store brands 65 Evolution of the distributor’s brand 66; Are they brands like the others? 69; Why have distributors’ brands?