Why is brand tracking so important? Additionally, why would a large company, such as Proctor & Gamble want to use brand tracking.
As per statement of Peter Drucker that, “If you cannot measure it, you cannot manage it” . The easiest and most effective way to determine whether a campaign is worthwhile, a promotion is successful, and the brand achieves its full potentials is Brand Tracking. Only 10 percent of brand managers rely on the brand tracking and confident enough on their standing and brand planning. Brand tracking is a powerful method; the value to the integrity of any brand is indeed beyond its measure.
Proctor and Gamble or P&G is one of the large companies in the world that uses brand tracking for years. In fact, the company is using the proprietary system for all its brands across the world. This proprietary system uses questions with range of attributes to make to assess the position of the P&G brand against other competitors in the category. If one of the brands of P&G is compared with a brand from a certain rival, then data are reviewed to see the stand or focus of the brand team that impact on the perception of the market. Brand tracking is useful; annual assessment is done in retrieving the data . The data are forwarded to the branding team in every country providing enviable level of monitoring in the state of the brand managed by the branding team.
Distinguish between quantitative and qualitative research methods, and to the best of your knowledge determine which method best fits the marketing environment.
Quantitative and qualitative research methods are the two general methods to gather and report information in the world of research. The quantitative research method tends to estimate or approximate facts from its larger number of persons utilizing survey methods. While the qualitative research method, focusing to understand facts from its closer perspectives. Generally, market research falls in the two major methodological methods; the quantitative and qualitative methods. Every method has its advantages and disadvantages and suitable for answers with different types of questions.
The quantitative research method is the gathering of information that focuses on the description of facts on large numbers of respondents; it provides the possible summary of characteristics among relationships or groups. It surveys large numbers of individuals, applications of statistical techniques in recognizing the overall models in the processes. In addition, it provides measures of numbers of individuals who think, behave, or feel in certain ways, uses the statistical analysis in determining the results or outcomes. Quantitative research establishes important conclusions about a population statistically by studying representative samples of the population. Whether the population is narrow or broad, what is important is that every person fits the description of the group being studied. For example, if a researcher wanted to know the number of customers supports the changes of services or products. Alternatively, how the customers strongly support the changes. Quantitative research method determines whether the person has a business case on the changes.
The qualitative research method is the gathering of information that focuses on the description of facts in an in-depth comprehensive way. Generally, this method is done in open-ended questions, focus groups, and in interviews. A small number of individuals are involved in this type of research method; the reason is that it requires many resources and time. Findings from qualitative research cannot be generalized to the entire population due to relatively few numbers of participants and its investments. However, qualitative research serves as a launch pad for deeper and larger studies informing practices, theories, and specific conditions. The qualitative research illustrates events in its natural settings; it is subjective and attempt to give details on the studied behavior in particular. Researchers using the qualitative research method use the ethnographic and anthropological methods to study and observe the participants frequently. It seeks to explain the current conditions and describes the conditions for the certain group. It implies that qualitative research is done only in the field.
A few years back, Disney entered into a long-term agreement with McDonald’s that included, among, other things, joint promotions. From Disney’s perspective and what you know about the two brands, was this the right decision? Is there any downside? Would you want to conduct any research to inform the decision? If so, what kind?
The world's largest fast-food chain, McDonald's Corp., and arguably the world's most recognized name in film entertainment, Walt Disney Co. had a 10-year agreement committed to promote their products around the world. The relationship guaranteed that the Disney’s magic touched the lives of the million daily customers of McDonald. They had a marketing partnership that was mutually profitable; McDonald was given a long-term promotional lures and Disney had a vast network of sales outlets internationally. Ten years that Walt Disney Co. and McDonald's Corp. showed a perfect partnership.
The one-decade partnership of Walt Disney Co and McDonald's Corp ended in 2006 and the non-renewal of the agreement was mutual. . However, McDonald continues to operate restaurants in Disney's theme parks. Disney has distanced from the fast food industry and its association with the childhood obesity.
For me, the decision of Disney was the right thing to do with all due respect to McDonalds. Even though Disney has an option to renew the contract; however, they did not exercise the said option to renew the agreement in 2004. Disney based their decision on their desire to have more options in the entertainment relationships and its flexibility. Personally, the downside of the decision is that the royalty fee from McDonald and 11 promotions a year for Disney films, videos, and television shows was stopped. With this event, McDonalds also experienced some disadvantages in terms of promotions of their products.
Contrast the branding strategies and brand portfolios of market leaders in two different industries. For this question, contrast the approach by Anheuser Busch and its Budweiser brand with that of Kellogg in the ready-to eat cereal category.
The business world of today’s generation is more challenging than before. The business environment is fast growing in complex ways globally. Every company is confronted with the necessity to prove the value of its investment. In addition, the retail environments are changing overtime. In the complex environment, all brands demonstrate their individual strategies, their own competitive challenges, and marketing objectives. The company who managed the large brand portfolios in different countries has found that the challenges are mixed with diverse conditions in the market. There are only few brands are created with the objectives globally, and the challenges of settling in to conflicting local necessities or desires are big issues. However, many new contexts and tools are fundamental in building strong brands; the engagement with the consumers through effective and powerful communications where the heart of the marketing process stays. The two brands, Budweiser and Kellogg have unique branding strategies and brand portfolios done by the market leaders. They have strong, successful, and dynamic brands.
Anheuser-Busch expanded at phenomenal rates becoming the world’s largest brewery. As a global prototype, ignoring the profitable European market, it rapidly became an impossible warning for the American brand owners to live with. With the increasing competition in its own country, Anheuser-Busch starts looking further for growth and its increased profits. As per statement of Stephen J. Burrows, the President and COO of Anheuser-Busch who viewed Europe as its key front line that, “Anheuser-Busch has the unchallenged rights to the Budweiser trademark in most of the world. Our differences are largely confined to Europe and some countries in North Africa.” Their extensive portfolio is anchored by 13 billion dollar brands that are united by its focus on the brand building to drive market share leadership across key regions. In addition, one of the hallmarks of any global consumer products of the company is the strength, health, and diversity of its brands. At Anheuser-Busch InBev, have extensive brands portfolios with over 200 beer brands all over the world. They strategies focused directly to the majority of its marketing resources to the brands with its great potential growths. The company believed that the brand health during this period equals the price premium in the future. Their approaches to marketing are designed to grow brand health that defined the strengths of the loyalty of the consumers to the brand. They track the health of their brands routinely and systematically. It drives the increase in consumer preferences for their brands are a key measure of the performance of the team. Brand health is significant lever of the company’s financial performance and shareholder value, as well. For the company, Marketing is about art, science, and discipline. They move swiftly in the implementation of a consistent Anheuser-Busch InBev Way of marketing globally. They focus on the global brand portfolio, absorbs the best thinking in a coherent and powerful formula. The company has a constant innovation and renovation as the key elements of their approach and drivers of top-line growth. New product variations, new package sizes, and periodic changes in label designs are just some methods the company uses to keep their brands relevant and fresh in the minds of the consumers. Important outcomes of this process are not only able to sustain existing price premiums; it often convinces consumers to move to premium products.
The Kellogg creates brands and builds relationships; it started with cornflakes that defined the industry, and currently, the company strives continuously to provide delicious choice of brands that people know, trust, and enjoy all over the world. Kellogg is bringing the best to the world; the brand portfolio varies from snacks and frozen foods as breakfast icons, the company is passionate about the family of brands and in the market, they belong. The company enrich and delight the people all over the through foods and brands that really matter. Their objective is nourishing every family with satisfaction and flourish. They have straightforward strategies, to continue as a leader in cereal, player in snacks, regional leader in frozen foods, and expand in the emerging market globally. In 2012, Kellogg finalized the purchase of Pringles from P&G; it tripled the size of snacks business and the world’s second largest savory snacks company internationally. They have a joint venture with Wilmar International Limited in China for the manufacture, distribution, and sale of cereal and snacks. The strategies are also focused on growing in health and wellness related foods, leveraging the brand to offer good benefits of cereal in other forms such as breakfast bars and drinks, accelerating the growth of the frozen food business in the United States. In addition, to accelerate the brand building, advertising, and consumer promotions especially in Asia Pacific and Latin America, and innovating many new products. Kellogg believed that their responsibility is vital to the success of its business strategies. The decreasing of energy use, water use, and waste are the best thing to do to help the environment. To promote sustainable agriculture, the company helps to make sure to have sufficient supplies of food ingredients that are high quality, reasonable cost, advances in nutrition science, and health and wellness. With these high-quality products, it would ensure the company’s product portfolio would stay side by side of the needs and tastes of the consumers. The diversity of Kellogg’s workforce is a significant driver of their ability to meet and understand more the needs of the consumers in the future.
It only shows that strong brands drive the strong financial performances; brands are valuable to any businesses because it is valuable to the consumers. In addition, the strong relationships with the consumers build value for brands.
Try to think of additional examples of brands that adopted either a “back to basics” or “reinvention” revitalization strategy. How well did they work?
The brand revitalization is a marketing strategy in the field of business. In the strategy is a range of revitalization strategies, a pure back to basics, or a pure reinvention. Starbucks used this principle of revitalization of its brand for the purpose to keep their renowned brands from obsolete state. In 2007 to 2008, Starbucks experienced a stock decrease of about 40 percent and it was critical, it needs a full turnaround in their brand. The company employed an approach, the back to basics approach in their brand revitalization strategy that started with a publicized three hours mass closure for the barista trainings . They hope that as they employed the strategy, it would improve their products and to demonstrate their full commitment to better quality and the satisfactions of the customers. After the barista trainings that aim to improve their products and to build trust and earn testimonial and endorsement from the customers, they executed a strategy by developing a website for the new customers. They increase their promotions on social media sites such as MySpace and Facebook. Through these strategies, it improves the popular and proven word of mouth strategy in virtual environment.
The strategies also package their brand the area of favorability, strength, and the uniqueness of the brands. The company has succeeded in the development of brand revitalization through the improvement of the base products with the establishment of brand equity, favorability, strength, and brand uniqueness. It ensures a position that protects the corporate investments in the knowledge of customer brand and addresses some deficiencies that would result to a negative impact on the brand itself.
Most specially, the competent leadership of the company is associated in the strategies. If the leaders made radical changes, then leaders can solve radical problems. It implies that leaders lead appropriately. It takes courage to face fear and failure; however, the courage benefits everyone when leaders lead competently.
Contrast Coke and McDonald’s global branding strategies. How are they similar and how are they different? Why they are so well respected?
Coca-cola managed to build a global empire that surpassed all other brands in the category or beverage industry. They succeeded everything through its consistency, recognition, and personalization. They created a global brand that every person, young or old, the happiness. Coke always sells billions of bottles of happiness in a year all over the world. The strategy of the brand is creating consistency-branding message that everyone can relate no matter what race or culture. Their slogan that says, Open Happiness and Enjoy endure globally. It is believed that consistency builds strong brand reputations that lead to recognitions. Coke is the most recognized brand all over the world spending many advertisements. Coca-cola first took the heart of the local consumers before they took the consumers internationally. Well, Coke does not only localize they simply personalize. Added to their promotions, the company had sponsored nutrition education and physical activity programs in different countries around the world. The global marketing strategy of Coke is on point. By using these marketing tactics to develop a reputation and build relationships, they turned the world in their community. The company offers unparalleled demonstrations on how to put that spend to good and proper use.
McDonald’s is one of the most visited fast food chain and ranked as the sixth most important brand globally. The keys of success of McDonalds are experimentation and segmentation. The company maintains its ability to adapt its advertising and marketing to different cultures and countries around the world. The marketing strategy is based on uniformity or consistency; customers will always have the most iconic products that created an empire. Their advertisement targets the children and adults with its varied approach and demographics. McDonalds built strategic marketing segmentation; the needs and wants of the customers and up to date marketing that reflects the changing demands of the customers. The company adapts its business and menu to the different countries they operates. They highly respect cultural differences and every country has its own policy of developing the menu items. The same kind of experience and atmosphere mean that customers’ expectations are fulfilled because customers know what they can expect from the fast food chain. Despite its geographic variety, the brand is very consistent with lots of attentions to detail to ensure the values are applied appropriately and globally. Although the company offers its products everywhere over the world, as the most popular restaurant or fast food chain on the planet, the brand always keeps recognizable with its original identity and meaning even as catering to local tastes.
Both companies demonstrate consistency and excellent global branding strategies. Coca-Cola has an ambitious new content marketing strategy. While its key values and message is to refresh and create moments of optimism and happiness and it remains the same on a global scale, the substance of its content will vary among cultures. McDonald’s is another good example of a company that adapts successfully its message, as well as its menus, to different cultures.
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