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S if 200 salsa brands and 7,500 mutual funds weren't bad enough. Throughout the industrialized world, there is a growing glut of products and services including, in the United States alone, a staggering number of mutual funds and varieties of what was once a niche-market hot sauce. That glut has been exacerbated by the Internet, where countless new companies are doing business in entirely new ways. Meanwhile, traditional industries are melding into one another, blurring categories and creating...

Assessing brand investments

Which elements of the customer's experience have the greatest effect on brand strength How does the return on an investment in one customer interaction stack up against other investments These questions can be answered with the help of structural equation models, or SEMs, quantitative research tools that allow a company to understand the potential investment returns of different initiatives aimed at improving the customer experience. Conventional regression analysis measures the effect of...

Brand is really about the customer relationship

Laurie Lang was until recently the senior vice president responsible for brand management at Walt Disney Company, a position she held for nearly a decade. Disney, a diversified entertainment company based in Burbank, California, had revenue of 23.4 billion in the year ended September 30, 1999 the company has 117,000 employees. Ms. Lang, who now oversees the company's philanthropic initiatives, spoke with Mercer Management Journal about brand building and management. Disney is one of the world's...

Brand patterns a catalogue of the ways brands evolve

These eighteen patterns, Emerging arrayed by type and by incidence, describe how market shifts affect brand strategy. Additional patterns and variants will be catalogued as they emerge. For elaboration and examples of these brand patterns, visit www.profitpatterns.com. Functional to Emotional Customers elevate the intangible benefits over product functionality. Concentration to Proliferation As customers demand greater product choice at multiple price points, companies move from a single brand...

Common Wedgwood A most uncommon brand

When Josiah Wedgwood was born in 1730, the potters in his native Staffordshire, as elsewhere in England, sold virtually all their wares locally. By the time he died in 1795, Wedgwood products were sold, coveted, and discussed throughout the world. How did Wedgwood build what is often cited as the first modern business brand * The supremacy of the Wedgwood brand did not derive primarily from Wedgwood's noted innovations in technology or factory organization, or the quality of his products, or...

English

Roberts As never before, brand management has become a crucial element of corporate strategy. In today's cluttered marketplace, a powerful brand creates a clear signal that cuts through the static. It can help a company break away from the pack in creating shareholder value. It can protect profits from being diverted to competitors or to customers. But at most companies, brand management is governed by a number of serious misconceptions. Too many executives...

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Value, which had been six times that of Nokia in 1989, was barely half Nokia's by 1998. Branded Experience Harley goes to H.O.G. heaven When did coffee cease to become coffee When Starbucks brought European flair to the traditional, utilitarian coffee shop. Whereas traditional brands such as Maxwell House played up the product itself Good to the last drop the Seattle firm has positioned its brand around the experience to which the product is central. This pattern typically unfolds when people...

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Advertising Revenue for Internet Companies Advertising Spending by Internet Companies Balance of Trade Advertising Revenue for Internet Companies Advertising Spending by Internet Companies Balance of Trade Sources Mercer analysis Competitive Media Research Internet Advertising Bureau Advertising Age Forrester Research media, relatively few companies, whether players in the last economy or the next, have shown much interest in advertising online (see Exhibit 3). Besides being ineffective,...

Ready for the next move

Understanding a brand's potential requires a new set of metrics A dispassionate analysis of a brand can uncover opportunities for a company to expand into new profit zones. It also can reveal signs that the brand is becoming irrelevant to changing customer priorities. American Express contemplates a bold partnership with Visa that would eliminate a major source of customer dissatisfaction by dramatically increasing the number of establishments accepting the Amex card. Will it erode the...

Retool your brand for the Webor rethink your business

For most traditional offline companies, the next 18 months will determine whether they can build a strong Internet brand. One issue facing them will be whether to take their current brand online or to create a new or modified brand for the Internet. Whichever route is chosen, however, two things are clear. The current blitz of advertising by dot-com companies is an inadequate model for those who hope to create an enduring brand in cyberspace. And as senior managers seek to create a branded...

Rigorous analysis provides a platform for action

The power that comes from understanding, at a deep and detailed level, how a brand actually shifts demand among different customer segments can't be overestimated. Such an understanding, reached through quantitative analysis, helps executives confidently plan and execute a brand strategy that will drive profit and shareholder value growth. The key to achieving this understanding lies in the quantification of a brand's equity through the isolation of its equity elements. Brand equity is the...

Surviving in a world of 200 salsa brands

A growing glut of product and service offerings is flooding the global marketplace, making it ever more challenging to get customers to notice, and buy, a company's products or services. A strong brand can create a clear signal that overrides the static. The examples of the glut are everywhere. Some 25,000 new consumer product SKUs (stock-keeping units) were introduced in the United States in 1998, compared with 4,400 in 1980, according to a recent study by the Federal Reserve Bank of Dallas....

The risks in getting the deal done

The handling of brand-related issues can make or break a deal. Why Because brand moves send messages, intended and unintended, to the companies' stakeholders. Wrong or inconsistent moves or, more typically, no moves at all can confuse customers, discourage employees, and signal a lack of will and forethought to investors. Furthermore, the failure to sort out the combined company's brand portfolio can saddle the firm with an unnecessarily high marketing cost structure that delivers no...

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I use a search engine such as Yahoo , Lycos, or Alta Vista I use a portal, click on the category (e.g., books) and link to the site from there I go straight to the company Web site by entering its address I go straight to the company Web site by entering its address 1 Fisher Price, Mattel, Disney, etc. 2 American, United, Delta, etc. Source Mercer Internet Consumer Brand Survey. Exhibit 2 In each category it has entered, Amazon.com has quickly secured significant customer mindshare. Overall,...

What ever happened to Burma Shave

Pattern thinkers can outsmart brand rivals in a changing marketplace Leo Burnett, founder of the agency that bears his name and Time magazine's Advertising Titan of the 20th Century, built his reputation as the champion of the long, enduring idea. For advertising executives of the Burnett school, nurturing brand images such as the Marlboro man, the Pillsbury Doughboy, and the Michelin Man was essential to building the brands. Once a brand achieves strong relevance and awareness, it serves to...

How Conoco broke the convenience store mold

Building brand equity through many moments of truth By Kathryn H. Feakins and Michael Zea Brands are enhanced or eroded during countless interactions between customer and company. The challenge is to design a customer experience in harmony with the brand, then allocate investment to the areas of greatest potential return. As the oil industry consolidated in the mid-1990s, Houston-based Conoco faced a major brand challenge. One of the world's leading energy companies and a prominent petroleum...

To our readers

On many dimensions, the task of keeping a business healthy and profits growing is getting harder each year. New competitors many of them Internet start-ups or new rivals from what were once entirely different industries appear constantly. A deluge of product and service offerings is flooding the global marketplace, making it more challenging to get your own products or services noticed. At the same time, you need to spend more time paying attention to Wall Street. You want securities analysts...

Mercer Management Journal

The New Brand Strategy Are You Experienced Common misconceptions squander the power By Eric Almquist and Kenneth J. Roberts Powerful brands can help firms leave rivals in the dust. But brand building today must encompass a more complex set of activities and target a broader audience than in the past. 19 Surviving in a world of 200 salsa brands Understanding a brand's potential requires a new set of metrics By Andy Pierce and Suzanne Hogan A dispassionate analysis of a brand can uncover...

What is a brand

The English word brand is derived from burning, a reference, in the word's business sense, to the embers once used to burn the mark of the owner onto livestock, casks, timber, metal, or other goods. By the 19th Century, according to the Oxford English Dictionary, the word had taken on the figurative connotation of a commercial trademark the ale was of a superior brand. Later, in the mid-20th Century, the word grew to encompass the image that a product connotes in the minds of potential...