Faculty
Professor Kevin L. Keller
Objectives
Course Objectives
Some of a firm’s most valuable assets are the brands that it has invested in and developed over time. Although manufacturing processes can often be duplicated, strongly held beliefs and attitudes established in consumers’ minds cannot. This mini-course provides students with insights into how profitable brand strategies can be created. It addresses three important questions. How do you build brand equity? How can brand equity be measured? How do you capitalize on brand equity to expand your business? Its basic objectives are to (1) provide an understanding of the important issues in planning and evaluating brand strategies, and (2) provide the appropriate concepts and techniques to improve the long-term profitability of brand strategies. The course consists of lectures, exercises, and case discussions. The course content has relevance to students pursuing a variety of different career goals in virtually any type of organization (public or private, large or small, etc.).
Course Organization and Administration
Strategic Brand Management is a marketing mini-elective course that is designed to improve student’s marketing skills and understanding of specific branding topics, as well as “big picture” issues of how various aspects of marketing “fit together,” all from a brand equity perspective. Accordingly, Strategic Brand Management is organized around key product and brand management decisions. The course involves weekly sessions on Monday and Tuesdays. The weekly sessions examine specific marketing topics from the perspective of building, measuring, and managing brand equity. These sessions combine lecture and case discussion. Background reading will include material from the 3rd edition of the instructors’ text, Strategic Brand Management. Case analysis focuses on brands such as American Express, GE, Intel, Nike, and Starbucks.
Requirements
Course Requirements and Evaluations
Adequate preparation for, regular attendance of, and full participation and involvement in the 9 class sessions
Case analysis write-up
Take-home final exam
More detail on these requirements is provided below. Final grades are based on the designations and standards published in the MBA student handbook and the distributional grading norms of the business school. Grades are assigned according to how well I feel you have satisfied the course requirements. Final grades are based on my perceptions of your performance for the three requirements, roughly according to the following weights:
1. Class participation and involvement (20%)
2. Case analysis (40%)
3. Final exam (40%)
Case Analysis
Your case analysis is Starbucks. Your assignment is to address questions at the end of the case. Your write-up cannot be more than 5 pages – single-spaced, 12-point font, and 1 ¼ inch margins. Figures or exhibits can be added and are not included in the page total. Your write-up must be turned in before the start of the last class on Tuesday, November 17th when we discuss the case.
Final Exam
The final exam is a take-home exam. The take-home final will be available in the course folder at 5 pm on the day of our last class session on Tuesday, November 17th. Completed finals need to be turned into Alison Pearson by 5 pm on the last day of finals, Tuesday, November 24th.
Required and Supplementary Readings
The reading consists of chapters from the third edition of my textbook. Given the length of the textbook and the short duration of the course, almost all of the assigned chapters can be skimmed as need be. Depending on student background and interests, however, certain sections of the text should be read more carefully. Six chapters that are likely to be of greater interest and importance – chapters 1, 2, 3, 8, 10, and 15 – are highlighted in italics below. These 6 chapters provide a good foundation to key branding topics.
A number of sources of additional information are available to further supplement the course readings which, depending on your career interests and goals, you may want to read at some point. Many of these readings are referenced in my text.
Most students find the articles in the academic journals themselves fairly dry and abstract but the Journal of Marketing (American Marketing Association, 250 S. Wacker Drive, Chicago, IL 60606) has more of an applied focus that makes it a little easier to digest. The Journal of Brand Management offers more of a European as well as more of an applied perspective that some may find useful (Henry Stewart Publications). The Harvard Business Review and MIT Sloan Management Review have included many branding-related articles in recent years. An excellent online site for lots of different articles is www.brandchannel.com.
In terms of current industry information, generally all of the main business publications (e.g., Business Week, Fortune, Forbes, and The Economist) as well as newer business publications (e.g., Fast Company) have marketing articles frequently dealing with branding issues. The Wall Street Journal has a daily column in Section 2 on advertising that often addresses branding issues. Two extremely useful industry trade publications are Advertising Age and BRANDWEEK. Both are excellent sources of current information about advertising, branding, and marketing in general for that matter.
Summary of Class Schedule and Assignments
Below provides a summary of the topics and required textbook readings for each of the 9 sessions. The outline of class sessions that follows describes the topics discussed in each class session and the requirements that each student should meet in preparing for that class.
Strategic Brand Management
Fall Quarter B 2009
Summary of Class Schedule
Tue 10/13 Course Introduction
Mon 10/26 Brand Planning
Tue 10/27 American Express Case
Mon 11/2 Brand Metrics
Tue 11/3 GE Case
Mon 11/9 Brand Architecture
Tue 11/10 Intel Case
Mon 11/16 Brand Growth
Tue 11/17 Starbucks Case
Wed 11/18 (Optional) Guest Speaker : Charlie Crowe (CEO – C Squared)
Thurs 11/19 (Optional) Guest Speaker : John Bello (SoBe founder)
Special time: 5 pm
Materials
Required Text
Kevin Lane Keller, Strategic Brand Management, 3rd edition, Prentice-Hall, 2008.
Grading
Schedule
Tuesday, October 13th
1. Course Introduction
Background
The objective of the first session is to provide the "big picture" for the course in terms of what strategic brand management is all about. The goal is for you to get a sense for what decisions must be made in brand management. Before today's session, please read the entire course syllabus carefully. The first chapter provides a useful overview of the scope involved in the course and the topics that will be covered. The Nike case will be used to illustrate various points in class – however there is no need to formally write up or prepare anything. There is also a short written assignment due at the beginning of class on personal brand preferences (see worksheet at end of the syllabus).
Course Syllabus
SBM (read)
Chapter 1 (Introduction)
Nike Case
Topics:
Course Structure and Content
History of Branding
Why do Brands Matter?
Overview of Brand Equity
Examples of Strong Brands
Written Individual Assignment (turn in at end of class):
1) What are 5 of your favorite brands? Why?
2) What do your favorite brands tell you about what makes a successful brand?
Individual Written Exercise I
STRATEGIC BRAND MANAGEMENT
Personal Brand Preferences
Individual Written Exercise I
What are 5 of your favorite brands? Why?
a.
b.
c.
d.
e.
What do your favorite brands tell you about what makes a successful brand?
Monday, October 26th
2. Brand Planning
Background:
The objective of today’s session is to consider in depth how to develop brand plans by crafting positioning and devising marketing programs and activities. There is also a second short written assignment to be turned in at the end of class on personal branding (see worksheet at end of the syllabus).
SBM (skim)
Chapter 2 (Brand Equity)
Chapter 3 (Brand Knowledge)
ter 4 (Choosing Brand Elements to Build Brand Equity)
ter 5 (Designing Marketing Programs to Build Brand Equity)
ter 6 (Integrating Marketing Communications to Build Brand Equity)
ter 7 (Leveraging Secondary Brand Associations to Build Brand Equity)
Topics:
Creating Mental Maps
Customer-Based Brand Equity Model
Brand Resonance
Brand Building Blocks
Brand Positioning Criteria
Brand Element Guidelines and Examples
Personalizing Marketing
-Value Pricing
Blending "Push" and "Pull" Strategies
Integrated Marketing Communications
Leveraging Secondary Associations
Written Individual Assignment:
1) Complete the “I Am A Brand” Worksheet
Individual Written Exercise II
STRATEGIC BRAND MANAGEMENT
I Am a Brand
Individual Written Exercise II
For this exercise, consider your career after graduation. What kind of “brand” would you like to build for yourself? Answer the following two questions concerning brand strategy to provide some marketing perspectives.
Define your points-of-difference. In what ways can you be unique to other top-tier MBA’s? What points-of-parity will you also need?
Can you arrive at a brand mantra that captures the essence of your personal brand positioning?
Tuesday, October 27th
3. CASE: American Express
American Express: Managing a Financial Services Brand
American Express is known worldwide for its charge cards, traveler’s services, and financial services. As it grew from a nineteenth-century express shipping company into a travel services expert by the mid-1900s, American Express became associated in the minds of consumers with prestige, security, service, international acceptability, and leisure. As the company grew, it expanded into a variety of financial categories, including brokerage services, banking, and insurance, and by the late 1980s, American Express was the largest diversified financial services firm in the world. The company encountered difficulty integrating these broad financial services offerings, however, and this fact, combined with increased card competition from Visa and MasterCard, compelled American Express to divest many of its financial holdings in the early 1990s and focus on its core competencies of travel and cards. By the end of the 1990s, American Express was again seeking to broaden its brand to include select financial services in order to achieve growth. Beyond the challenge of integrating these services, American Express has faced a number of issues in the first decade of the 21st century, including a highly competitive credit card industry, a severe recession, and a sluggish travel industry.
How does the role of branding differ for consumer services vs. consumer products?
Evaluate American Express in terms of its competitors. How well is it positioned? What are its points-of-parity and points-of-difference in its different business areas? How has it changed over time? In what segments of its business does American Express face the most competition?
Evaluate American Express’ integration of its various businesses. What recommendations would you make in order to maximize the contribution to equity of all of its businesses’ units? At the same time, is the corporate brand sufficiently coherent?
Discuss the company’s decision to grow beyond its core affluent consumer base. What did this do for the company and the brand?
Monday, November 2nd
4. Brand Metrics
Background:
In this session, we will explore a number of different ways to measure brand equity. Chapter 8 deals more with the process of managing brand equity measurement and provides a useful foundation. Chapters 9 and 10 may be more of a review depending on your familiarity with marketing research techniques.
SBM (skim)
Chapter 8 (Measuring Sources of Brand Equity)
Chapter 9 (Measuring Outcomes of Brand Equity)
Chapter 10 (Brand Equity Measurement System
Topics:
Indirect and Direct Measures of Brand Equity
Qualitative, Exploratory Research
Quantitative, Tracking Research
Experimental Approaches
Industry Measurement Models
Financial Measures of Brand Equity
Brand Equity Measurement System
Tuesday, November 3rd
5. CASE: GE
GE: Branding in Business-to-Business
As General Electric’s ninth chairman, Jeff Immelt, took office as Chairman of the Board and Chief Executive Officer, a struggling economy, rising fuel costs, and global warming were the major concerns of the day. Immelt believed that the future of the company lay in innovation and emerging technologies such as fossil fuels and wind power. He began to implement this vision, first dropping the well-known slogan “We Bring Good Things to Life” for “Imagination at Work” in 2003. Then, as stricter global regulations and environmental concerns became more prominent, he launched a company-wide initiative called “Ecomagination” in 2005, which set aggressive goals for GE to produce cleaner technologies. This major shift in marketing and business strategies did not boost GE’s stock, however, which dropped considerably in the face of the severe economic recession in 2008. Nevertheless, Immelt continued to believe that focusing on innovation and eco-friendly technology was the best, most profitable long-term direction for the company. The case analysis addresses the wisdom and likely success of these moves.
Discuss the importance of B2B marketing and a strong B2B brand. How does it differ from consumer marketing?
Did Jeff Immelt and Beth Comstock do the right thing by dropping “We Bring Good Things to Life” for “Imagination at Work”? Why or why not?
Have the new campaigns over the past 4 years - “Imagination at Work,” “Ecomagination,” “Healthcare Re-Imagined,” and “NOW” changed GE’s brand? If so, how? Is it a good change or not?
Has Immelt transformed GE’s approach of innovation (risky, unknown areas like fuel cells, solar energy, hydrogen storage and nanotechnology) vs. past strategies of improvements of current technologies?
Considering the unique and difficult economic times of 2009, do you think GE has the right marketing strategy in place? Why or why not? What else should they be considering?
Monday, November 9th
6. Brand Architecture
Background:
The objective of today’s session is to consider brand architecture. We will consider issues concerning the appropriate product and brand strategy to effectively leverage brand equity and introduce new products. Which product or service categories should be considered and what names and other brand elements should be applied?
SBM (skim)
Chapter 11 (Corporate Branding Strategies)
Chapter 12 (Introducing and Naming New Products and Brand Extensions)
Topics:
Corporate Branding Strategy
Brand Hierarchy
Brand Portfolios
Line Extensions
Category Extensions
Tuesday, November 10th
7. CASE: Intel
BPCB
Intel: Building a Technology Brand
This case concerns the marketing efforts by Intel to build brand equity for their microprocessor line. Intel must determine how to name new generations of microprocessors, as well as how to establish competitive advantages and consumer preference. A number of issues are raised concerning the launch of new products and the development of an effective branding strategy. Class discussion will revolve around the following questions that should be considered before class:
What were the strengths and weaknesses of the Intel Inside campaign?
Evaluate Intel’s continued use of the Pentium family of processors. Did Intel make the right decision by extending the name through the Pentium 4 processor?
Suppose you were the Chief Marketing Officer for AMD. How would you propose the company position itself to better compete with Intel? Would you propose that AMD institute an Inside-like ad campaign?
How successful was the launch of Centrino? What were their challenges branding Centrino?
In light of Intel’s move into the “digital home,” did the company’s executives make the right decision in launching an entirely new brand identity? Did it make the right decision in changing a 37-year-old Intel logo and dropping the Intel Inside campaign for Leap Ahead? What other marketing strategies might the company employ?
Intel moved into consumer-electronics products, such as digital cameras in 2000, only to withdraw after receiving complaints from OEMs such as Dell. Does Intel face a similar issue with its move into the “digital home?” Does this move too far outside Intel’s core competency of producing microprocessors?
Monday, November 16th
8. Brand Growth
Background
The objective of today’s session is to consider brand growth. We will expand our boundaries to take a global perspective and consider the implications of different cultures on effective brand management. We will also consider how to effectively manage brands over time. Finally, we will take stock of current branding trends.
SBM (skim)
Chapter 13 (Managing Brands Over Time)
Chapter 14 (Managing Brand Over Geographic Boundaries Cultures, and Market Segments)
Chapter 15 (Closing Observations)
Topics:
Global Branding Strategies
Brand Reinforcement & Revitalization
Tuesday, November 17th
9. CASE: Starbucks
BPCB
Starbucks: Managing a High-Growth Brand
This case considers the challenges in developing marketing strategies and plans for a high growth brand and describes the history and early successes of Starbucks. By transforming the coffee category, Starbucks was one of the true marketing success stories of the 90’s. Despite this remarkable growth, however, critics questioned whether Starbucks lost focus as the company strived to constantly reinvent itself and whether the Starbucks brand had grown too quickly. Its relative underperformance in recent years only highlights the importance of these concerns and questions. Class analysis will revolve around the following questions that should be addressed in the write-up before being discussed in class:
How did Starbucks build such a successful brand? Analyze their marketing program and identify their keys to success.
How would you characterize and evaluate Starbucks’ growth strategy through the years? Are there things you would have done differently?
How would you characterize and evaluate Starbucks’ current positioning? Which companies and brands represent the biggest competitive threat to Starbucks?
Why has Starbucks encountered difficulties in recent years? What recommendations would you make to Starbucks marketing executives to help them move forward?
Thursday, November 19th, 5 pm
10. Guest Speaker: John Bello (OPTIONAL)
John Bello is a General Partner with Sherbrooke Capital, a venture capital group dedicated to investing in leading, early stage health and wellness companies. He serves on the board of Boathouse Sports, a Sherbrooke portfolio company. Mr. Bello is the founder and former CEO of South Beach Beverage Company, the maker of nutritionally enhanced teas and juices marketed under the brand name SoBe. The company was sold to PepsiCo in 2001 for $370 million. In 2001, Ernst and Young named Bello national Entrepreneur of the Year in the consumer products category for his work with SoBe.
Prior to founding SoBe, Bello spent 14 years at National Football League Properties, the marketing arm of the NFL and served as its President from 1986 to 1993. Prior to the NFL, Bello served in marketing roles at General Foods and PepsiCo. Currently Bello is a General Partner with Sherbrooke Capital, a venture capital group dedicated to investing in leading, early stage health and wellness companies.
He serves on the board of Boathouse Sports, a Sherbrooke portfolio company. He is also president of JoNa Ventures, an investment and strategic management company he co-founded with his wife Nancy (T’75). During four years of service with the United States Navy, he achieved the rank of lieutenant (senior grade) and received the Navy Commendation Medal with Combat V for meritorious service on riverboats in South Vietnam. His activities include: Tufts University board of overseers (board member, athletics); Gordon Entrepreneurial Center at Tufts (board of directors); Rye (NY) YMCA (board director); New York Council Boy Scouts of America (board director).
He obtained his BA from Tufts University, cum laude, and received his MBA from the Tuck School of Business in 1974 as an Edward Tuck Scholar
