End of teachers’ book. Branding: A crucial defence in guarding market share
Unit 1. 1
Unit 1. Brands. 1
Made in Europe (8th page) 1
Harley Davidson (10th page) 2
JCB (10th page) 2
Business brief. 2
End of teachers’ book. Branding: A crucial defence in guarding market share. 3
End of teachers’ book. The challenge of turning a brand into an object of love. 3
Unit 2. Travel. 4
Road rages in the sky (17th page) 4
(20th page) 4
Buisness brief. 5
End of teachers’ book. Wireless Internet: Demands of a more mobile workforce. 5
End of teachers’ book. Corporate road warriors. 6
Unit 3. Organisation. 6
Dirty Business, Bright Ideas (24th page) 6
Business brief. 7
End of teachers’ book. Happy staff is not the full answer 7
End of teachers’ book. The engineer of the humane corporation. 8
Unit4. Change. 9
US department stores launch counter-attack (31th page) 9
Business brief. 9
End of teachers’ book. Shake-ups that leave us shaken but not stirred. 10
End of teachers’ book. Coastal wealth radiates across inland China. 10
Unit 5. Money. 11
Target Stores (42th page) 11
Business brief. 12
End of teachers’ book. Megane sales drive Renault to top position. 12
End of teachers’ book. Shares fall as BSkyB plans for long-term.. 13
Unit 6. Advertising. 13
What makes Nike's advertising tick?(48th page) 13
Business brief. 14
End of teachers’ book. American dream gets a Latino beat 15
End of teachers’ book. The anti-ad brigade. 15
Unit 8. Employment. 16
Motivating high-calibre staff. 16
Buisness brief. 17
End of teachers’ book. The money move. 17
End of teachers’ book. Voodoo expense. 18
Unit 1. Brands.
Made in Europe (8th page)
Almost every fashion label outside the top super-luxury brands is either already manufacturing in Asia or 5 thinking of it. Coach, the US leather goods maker, is a classic example. Over the past five years, it has lifted all its gross margins by (10) manufacturing solely in low-cost markets. In March 2002 it closed its factory in Lares, Puerto Rico, its last company-owned plant, and (15) outsources all its products. Burberry has many Asian licensing arrangements. In 2000 it decided to renew Sanyo's Japanese licence for (20) ten years. This means that almost half of Burberry's sales at retail value will continue to be produced under license in Asia. At (25) the same time however, Japanese consumers prefer the group's European-made products. Sanyo is now reacting to 30 this demand for a snob alternative to the Burberry products made in its factories across Asia by opening a flagship store in 35 Tokyo's Ginza, where it sells Burberry products imported from Europe. In interviews with the FT, many executives say the top (40) luxury brands will continue to be seen, particularly in Asia, as European. Domenico De Sole of Gucci says: 'The Asian consumer 45 really does believe - whether it's true or not - that luxury comes from Europe and must be made there to be the best.' Serge Weinberg, Chief 50 Executive of Pinault Printemps Redoute, which controls Gucci, says it will not move Gucci's production offshore. Yet some in the 55 industry recognize that change may be round the corner even for the super-luxury brands. Patrizio Bertelli, Chief Executive of 60 Prada, says: 'The "Made in Italy" label is important but what we are really offering is a style, and style is an expression of culture.' He 65 therefore recognizes that quality fashion items may not always need to be produced in Italy. Amitava Chattopadhya. 70 Professor of Marketing at Insead, the business school. says: A brand is a set of associations in the mind of the consumer and one of 75 these is the country of origin. For luxury goods, the role of the brand is crucial. To damage it is a cardinal sin and no brand manager will 80 want to get the balance between manufacturing location and the brand image wrong.
From the Financial Times
Harley Davidson (10th page)
In 2003 the Harley Davidson brand was 100 years old. Although its brand image is based on the spirit of wild and rebellious youth such as Marlon Brando in the film The Wild One (1954), the typical consumer is very different. They are likely to be rich, middle-aged accountants trying to recapture their youth. The average age of Harley Davidson customers is 46 compared with 36 for the rest of the motorbike industry. At the party to celebrate the centenary, the surprise performer was actually Elton John, rather than the Rolling Stones who many people had expected. This caused many of the 150,000 riders and dealers to leave the event very unhappy. Although sales and earnings for Harley Davidson have been increasing for the past 18 years, many people see trouble on the road ahead. The problem is Harley Davidson's typical customers come from the baby-boom generation (1946-1964) and, as these customers get older, Harley Davidson may find its market shrinking.
JCB (10th page)
JCB is a world-famous engineering company. It was founded in 1945 by Joseph Cyril Bamford. He began his business working alone in a small garage. JCB makes construction and agricultural equipment such as tractors, earth-moving vehicles and loading machines. Now its world headquarters in England is one of the finest engineering factories in Europe. The company produces over 130 different models on four different continents and sells a full range of equipment in over 150 countries. It is truly a global brand.
JCB's research showed that its customers associated the company with the following brand values: 'yellow1, 'digger* and 'durable'. Adults saw the brand as being very British, and suggesting an image of quality and being functional. Children, on the other hand, saw the brand as 'big', 'muddy' and 'fun'. JCB made a decision to stretch its brand.
As the marketing expert Philip Kotler has said, 'The most distinctive skill of professional marketers is their ability to create, maintain, protectand enhance brands.' But, despite the best efforts of professional marketers, the list of top brands of today is not so different from that of 30 or 40 years ago: Coca-Cola. IBM. Ford and Hoover are all still there. Consumers tend to form emotional attachmentsto foods and household goods they grow up with. These brands gain mindshare in consumers at an early age and new brandsfind it hard to compete with the established brands.
One area where new brands can appear is in new categories. For example, the names Dell and Easyjet have emerged as extremely strong brandsin built-to-order PCs and low-cost airlines respectively, industries that have not existed for very long.
We tend to think of brands in relation to consumer marketingand packaged goods,and consumer goods companies will often employ brand managersto develop their brands. But the use of brands and branding is also important in industrial or business-to-business marketing, where companies are selling to other companies, rather than to consumers. As Amitava Chattopadhyay says in this unit of the Course Book: 'A brand is a set of associationsin the mind of the consumer'. In business-to-business marketing, substitute 'buyer'for 'consumer', and there will be similar issues of brand awareness, brand imageand brand equity:the value to a company of the brands that it owns. In business-to-business, the company name itself is often its most important brand. A company's imageand reputationwill clearly be key to its success.
End of teachers’ book. Branding: A crucial defence in guarding market share
By Fiona Harvey
For companies whose main products will never be seen by consumers, whose skill may lie in producing anonymous grey (#5) powders, the issue of branding might seem irrelevant. What difference can a name - or a carefully designed logo - make to selling chemicals? 'Nobody loves (#10) chemicals, ' says Peter May, Global Executive for chemicals and Pharmaceuticals at KPMG, the business services group, which could explain why so few (#15) chemicals products are branded to the end-user. Yet branding can be a key defence in protecting market share in markets where all products seem to be the same.
(#20) Even in the business-to-business market, chemicals producers can fix their product's identity in the client's mind through clever use of branding, according to Mr May.
(#25) The procurement officers in large companies, who have responsibility for buying in supplies, can be as susceptible as end-users to branding that (#30) emphasises a product's key attributes and the manufacturer's values. Mr May cites the example of Neoprene, an industrial material recognised for its (#35) strength and toughness, as a success in this field.
Catrin Turner, partner at KPMG's IP services division, agrees. She notes: 'You can't
(#40) neglect branding. If you think you have no brand, what that means is not that you really don't have any brands, but that you are not in control of them. And research (#45) shows that people do make buying decisions on the basis of brands.' Dow Corning, for instance, set up the Xiameter brand for its lower-priced, high volume and (#50) established products, in the commoditised end of the chemicals market.
'We were aiming to make a clear choice for customers, (#55) characterizing the product very clearly for the market, and for our employees,' says Mike Lanham, Executive Director of Xiameter. 'A lot of the chemical industry does (#60) not spend time on branding. It was a foreign concept, and we've had plenty of requests from other companies to talk to them about what we did and why, as it is so (#65) unique.’ Chemicals companies can also extend their brands into the consumer arena. Ms Turner points to the success of brands (#70) such as Lycra, Gore-Tex, Microban and Teflon in the consumer market, as examples of how chemicals companies can appeal directly to customers even though (#75) their contribution may not be obvious in the end product. 'DuPont didn't make a success of Lycra by accident. It was a carefully executed strategy, which (#80) has paid off,' she explains.