kapferer-modelbrand-identity-prism-1228214291948754-9.ppt

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    Brand Identity Prism

    (Kapferer)

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    KAPFERER represents brand identity diagrammatically asa six-sided prism as shown below:

    Inte

    r nalis

    ation

    Exte

    r nalis

    ation

    Constructed Source/Sender

    Constructed Receiver

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    Physique according to him is the basis of the brand. E.G. the physique of Philips is technology and reliability while for the

    brand Tata it is trust

    Personality is same as Aaker, it answers the question whathappens to this brand when it becomes a person?

    Culture symbolizes the organization, its country-of-origin and thevalues it stands for.

    E.G. traditional brands like balsara, dabur and zandu.

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    Relationship is the handshake between consumer and theorganisation. E.G. the relationship with safola is safety.

    Reflection is the consumers perception for what the brands standsfor. E.G. cokes image more attract youth.

    Self- image is what the consumer think of himself. E.G. benz Car owner think that since he has bought the car he is

    treating himself to one of the best car in the world.

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    Let us understand the model in detail

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    What is a Brand???

    A Brand is a complex symbol. It is the intangible sum of a products attributes, its name, packaging and price, its history, reputation, and

    the way its advertised. A brand is also defined by consumers impression of people who use it, as well as their own experience

    - David Ogilvy

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    Brand Experience are of Tw o types

    Brand Experience

    External Internal

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    The External Brand Experience include

    Name Logo

    Advertising Brand Identity Environments Products & Service

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    The Internal Brand Experience include

    Business Process Customer Relations

    Brand Values Training Quality Staff Motivation

    Recruitment Policies Technology etc..

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    Now let us look at the Brand Identity Prism based on Kapferer model

    and the 6 key dimensions in it

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    Inte

    r nalis

    ation

    Exte

    r nalis

    ation

    Constructed Source

    Constructed Receiver

    -Business Process -Customer Relations-Brand Values -Training-Quality -Staff Motivation-Recruitment Policies -Technology etc..

    -Name -Logo-Advertising -Brand Identity-Environments -Products & Service

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    Physical Product features, symbols & attributes

    Personality Character & attitude

    Relationship Beliefs & association

    Culture Set of Values

    Reflection Customers view of the brand

    Self-Image Internal mirror of customer as user of brand

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    Let us now understand the prism with some examples

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    For Sify Ind ia let us look at how they have built the brand basis theKapferer Model

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    Sify India Physical

    Kite Symbol, Online Access

    Personality Innovative & Tech savvy

    Culture Customer centric & Indian

    Self -image "net" way of life empowered

    Reflection Consistent & dependable performer

    Relationship Best guide to the net

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    Let us now understand the prism in more detail with a case study Adidas

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    Case Study Adidas (1)The company Adidas was founded in the early 1920s as Gebruder Dassler Schuhfabrik, inHerzogenaurach in Germany. Adolf Dassler designed a pair of sport shoes in 1925 and few years later

    he and his brother Rudolph were selling special shoes for tennis players and began design specificshoes for different sports. The family company split in 1948. After the split, Adolf (Adi) Dassler founded

    Adidas and his brother Rudolph founded Puma. The three-stripe logo was designed in 1941 by AdiDassler and he registered it as a trademark for Adidas after the split.

    The strength of Adidas was its product innovation. Adi Dassler registered more than seven hundredpatents. Adidas began selling its shoes in the United States after 1968 and in few years the companydominated the American market. The most important marketing breakthrough was the active promotionof global sporting events, especially the Olympics. The connection of Adidas to the Olympics has a richheritage. At the 1972 Olympic game in Munich, every official wore Adidas.

    Activities: manufacture and distribution of textiles, shoes and appliances for sport and related products. Adidas has 107 subsidiaries in 20 countries, and exports to 160 countries. Exploitation of the registered

    trademark Adidas is made where ever it is an opportunity. Activities of the company and its subsidiaries are directed from Adidas-Salomon AG's headquarters in Herzogenaurach, Germany.

    Products: Adidas - Footwear, apparel, and hardware such as bags and balls. Salomon - Winter sportsincl. skis, snowboards, snowblades, ski boots and bindings, inline skates, hiking, apparel. Mavic Cyclecomponents, Bonfire Snowboard apparel. Arc'Teryx - Outdoor apparel, climbing equipment, Clich Skateboard equipment, footwear and apparel, Taylor Made-Adidas Golf - Golf equipment, golf apparel,

    golf shoes and finally, Maxfli - Golf balls, irons and accessories

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    Case Study Adidas (2)In the early 1980s Adidas has sales of $1 billion, and their brand-building model began to lose power.In America, the largest sports market, Nike had built a successful business in part of riding the

    explosive growth of running and jogging among casual users. Adidas focused mainly on athletes inteam sports so they did not participate in the boom of the 1980s. Mostly therefore Adidas wasovertaken by Nike at that time.

    In 1990, Adidas was holding on to just a two to three percent share of the U.S. market. Between 1988and 1992 Adidas total sales dropped from nearly $2 billion to $1.7 billion. In the same period, Nikes sales went from $1.2 billion to more than $3.4 billion. From being the U.S. market leader in the late1970s, Adidass market share dropped to 3 percent in 1992. The European market shares dropped while Nikes shares grew.

    Adidas also have had problems with the upstream value activities in their value chain. Traditionally, thecompany have their own factories and wholly owned subsidiaries. What happened in the '70s andforward, during the Adidas recession, was that Adidas was unable to ship products when it was

    needed, and they had a long supply chain - it took 18 months to get a new shoe into the market. Thistime is now reduced by 50%. Methods used are e.g. reducing transporting times trough bypassingwarehouses and deliver directly to retailers. Today Adidas aims to have new products closer to themarket.

    In 1997Adidas AG acquired the Salomon Group with the brands Salomon, Taylor Made, Mavic andBonfire. The new company is named Adidas-Salomon AG.

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    Research Problem

    The strategies of Adidas were based on advertising, sponsorship programs for team end eventsand sub-brands

    Among the similarities between the campaigns for Adidas and Nike we can see their strategies toadvertise in a huge scale One difference is that Adidas Endorsement program is focusing on major global events, sports

    associations, and teams, and Nike, in contrast, focuses on individual athletes and their success While Nike have Nike Town shops in the bigger cities in the world, Adidas have created The

    Adidas Streetball Challenge which started out in Germany 1992 and five years later it had over500.000 participants

    In the finals in Germany it attracted 3200 players and 40.000 spectators Both Nike and Adidas began their turnarounds by developing a brand identity In each case, this exercise led to a focusing of the brand and initiatives that built the brand in new

    directions

    How have Adidas used the instrument branding, and which roll did it play in thecompetition between Adidas and Nike?

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    Now let us do a Comparative analysis through Kapferers Prism model

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    Two aspects of Brand Identity

    Sender Receiver

    Physique Personality Reflection Self-Image

    Kapferer meanswhat the central

    purpose of the brand

    is (that is what thebrand does)

    Kapferer means thesoul of the brand

    Kapferer means howthe individual in the

    targeted groupidentify himself as aperson in relation to

    the brand

    Kapferer means howthe individual in the

    targeted groupidentify the brand inrelation to himself

    Two dimensions are still left to be explained in the prism, the Relationship and the

    Culture

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    The Relat ionship is, according to Kapferer, externalizing the brand from thecompany outwards, and the culture is an aid for internalizing the brand in theorganization and in to the conscious of the customer

    The Cul ture is, according to Kapferer, the strongest dimension in the prism. Itrepresents the difference between one brand and another

    Now let us look at the prism of Adidas and Nike

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    Adidas

    Picture of Sender

    Picture of Receiver

    PersonalityTraditional, conservative,collective

    PhysiqueSports and fitness

    RelationshipQuality and heritage CultureEuropean, Traditional

    Inter n

    alization

    Exter n

    alization

    ReflectionTrue sportsmanship, Agood team player, Strong

    work ethic

    Self ImageRelates more to competingthan to winning

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    Nike

    Picture of Sender

    Picture of Receiver

    PersonalityLike Jordan, Woods PhysiqueSports and fitness

    RelationshipSponsorship, ethics Culture American, Just do it!

    Inter n

    alization

    Exter n

    alization

    Reflection Aggressive, provocation,in- your face

    Self ImageCool, I am an athlete

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    Adidas

    Picture of Sender

    Picture of Receiver

    PersonalityTraditional,

    conservative,collective

    PhysiqueSports and fitness

    RelationshipQuality and

    heritage

    Culture

    European,Traditional

    Inter nalization

    Exter nalization Reflection

    True sportsmanship, A goodteam player, Strong work ethic

    Self ImageRelates more to competing than

    to winning

    Nike

    Picture of Sender

    Picture of Receiver

    PhysiqueSports and fitness

    Inter na

    lization

    Exter na

    lization

    PersonalityLike Jordan,

    Woods

    RelationshipSponsorship,

    ethics

    Culture American, Just do

    it!

    Reflection Aggressive, provocation, in-

    your face

    Self ImageCool, I am an

    athlete

    Comparative Analysis

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    Comparative Analysis (1) Nike centred their brand equity model on the platforms, the endorsement focus strategy, creating a

    dominant media presence, development of Flagship stores, Nike Town and sub-branding

    The Adidas strategies were based on, endorsement focus strategy, advertising, sponsorshipprograms focusing on major global events, sports associations, and teams, and sub-brands To create brand awareness both companies have been using endorsement strategies in their

    brand-building programs What differs is that Adidas focuses on sponsorship of teams and events e.g. national teams and

    big sport events like the Olympic Games and different World Championship events. This will helpthem to create awareness with help from different types of media

    In contrast Nike has their focus on individuals like M. Jordan and T. Woods and their successstories About the second strategy, advertising Nikes advertising strategy was to create dominant

    presence in media. Nike created media presence in several trend setting United States cities. TVads linking Nike to a city were used, but real drivers were huge oversized billboards and murals onbuildings that blanketed cities with messages featuring key Nike-sponsored athletes, not products

    Adidas took up the competition with Nike through raising their advertising budget to a level that

    made it possible to compete with Nike on the same conditions and the same strength as Nike didto capture the consumer interest Adidas did not just spend more money; they made an impact with brilliant executions. They

    made TV and other advertising campaigns. The company communicate their heritage ofinnovation, technology and big success stories with personalities like Emil Zatopek, Mohammad Ali

    Adidas tried to spread meanings like We know then - we know now and There is nothing betweenyou and success, so exceed your own expectations and limitations and Earn it

    The success was obvious and after hard work and striving toward a top position in the industry Adidas was back in business.

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    Comparative Analysis (2) Nikes third strategy was to develop, flag ship stores, Nike Town shops in bigger citys, first

    national, and then abroad Nike was the first company to establish flagship stores and it turned out to be a sensation Adidas choice was to experiment with sport events, with which they made great success.

    Examples of that is the Adidas Streetball Challenge a local three-person team basketballtournament, this event started out as a trail in Berlin in the beginning of the 1990s as one timeoccasion

    In the mid 1990s it had become a huge sport event with about 500.000 participants all over thebigger cities in Europe

    In the finals in Germany it attracted 3200 players and 40.000 spectators Adidas made hereby a brand-building success The Nike customer associated the Nike brand with words like sports, attitudes and life style.

    Reasons for that is one can relate to or identify one self to Nikes marketing campaigns like Justdo it and the companies front athletes like Michael Jordan and Tiger Woods. For Adidas oneimage study of consumers found the brand very trendy, modern and cool

    The survey was made in late 1990s. All marketing actions that both companies are implementing

    will hopefully result in loyal customers Adidas introduced a sub-brand in 1990 to serve the high-end products for all categories of shoesand apparel. The Equipment sub -brand would represent the best, whatever the product was

    The low- end products, for the normal consumer still have a high technology and level ofinnovation because of their inheritance of the older innovations and technology from the Equipmentline

    This strategy made the Adidas brand take on a different meaning; it still meant participation,

    emotion and performance

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    Comparative Analysis (3) This was a success strategy for Adidas so successful that Nike copied their idea and introduced

    their own line, the Alpha line, based on the same idea Nike advanced from $1 billion dollars in 1986 to $ 9.9 billion in 2002, Adidas advanced from $1.7

    billion in 1992 to $4.8 billion in 1998 According to sales figures for the both companies, it seems that both Nike and Adidas companies

    have succeeded to create a brand loyal customer who perceives the Nike and Adidas products astop quality

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    Conclusion (1) Both Adidas and Nike have used the same theoretical systems to create their brand building

    programs The companies are benchmarking each other, using the techniques from each others successes,

    when Nike launched their sub-brand product Alpha line which was benchmarked on Adidas alreadylaunched sub-brand of the Equipment product line for the elite of sports men

    We can find many similarities like endorsements strategies and the companies advertisingstrategies but what differs in the endorsement strategies is that Adidas focuses in sponsoringteams and global events, while Nike have their center of attention on stars in specific sport likebasketball and Michael Jordan or in golf and Tiger Woods

    About advertising both companies have about the same scale and scope of advertising but they tryto communicate different messages

    The messages from Adidas is; the only one you compete with is your self whereas Nikecommunicate a provocative, aggressive winner attitude which can be related to the Americansports attitude You dont win silver, you lose gold

    As we can understand the two companies are aiming at nearly the same targeted customer groupbut with a slightly differentiation of attitude

    Adidas stand for a competing and winning over your self-attitude, and Nike stands for a winningover everyone attitude The differentiation is based on the differences in culture between the two companies and between

    Europe and USA As an overall reflection one can see that Adidas had to overcome, that the both companies had the

    same target group. Adidas choose a brand-building strategy that built on the same theoreticalcriterias as Nike. But they created a differentiation in identity of the brand (as seen comparing

    analysis in the Kapferer Prism Model above) compared to Nike

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    Conclusion (2) Adidas had the same strategy within creating equity value to their brand They challenged Nike in endorsement strategy, and in advertising, but with a slight difference in

    communicated message, by doing it trough the same medias. To differentiate them self and maketotally own awareness activities, events like Adidas Streetball Challenge was created. Events likethose communicated the Adidas brand around the world

    According to the results and positions the brand-building programs have given both Adidas andNike in the sport industry, one can say that branding have been a totally determining factor. On topof that they made it so good that they are used as models in higher education.