Strategic Brand Building: Luxury Watch and Nike Case Studies

1. Luxury Watch Brand Equity Analysis

Brand Salience: High Awareness

Most recalled luxury watch in the world.

Brand Performance: True Luxury Product

• Hand-crafted with premium materials.
• Exceptional customer service.
• Holds value well.

Brand Imagery: Classic and Achievement

Status symbol. Classic heritage.

Brand Judgments: Very High Quality

Great quality, design, and innovation.

Brand Feelings: Exclusive and Self-Rewarding

Feelings of social approval and self-respect.

Brand Resonance: Extremely Loyal Consumers

• High repeat purchase rate.
• Strong attachment.
• Part of elite society.

2. Points of Difference (POD) and Parity (POP)

Luxury Watch Brand Positioning

Points of Difference (PODs):

• Price point.
• Brand recognition.
• Resale value.
• More traditional design.

(TT: Functional Design, Key Attributes, Ingredients, Endorsement)

Points of Parity (POPs):

• Swiss made.
• Luxury status.
• Precision.
• History of innovation.

(TT: Category, Competitive, Correlational)

Nike Brand Positioning

Points of Parity (POPs):

Quality, price, innovation.

Points of Difference (PODs):

• Running and basketball focus.
• USA origin.
• History of success.
• Top athlete endorsements.
• Performance sports focus.
• Creative advertising.

3. Brand Strategy and Marketing Communications

Key Brand Attributes and Positioning

U, S, F attributes used:

Precision and Certification:

• Swiss certificate of precision for a wristwatch.
• Class A precision certificate from Kew Observatory in Great Britain.

History of Innovation:

First waterproof, automatic, and date luxury watch.

Symbolism:

Symbol of personal achievement, aspirational status symbol, and professional success.

Distinctive Design Elements:

The crown and the magnifying lens for the date are famous design elements of Rolex watches.

The brand positions its watches as luxury goods through the marketing mix.

Brand Mantra Development

• Drives power and usefulness from collective meaning.
• Designed to capture the Brand's POD.
• Establishes the category and focuses on PODs.
• Helps maintain a consistent image and distinguish inappropriate marketing activities.
• Provides guidance on what products to introduce.

Four Stages of Brand Building

1. Ensure identification of the brand with customers: Deep, broad brand awareness.
2. Firmly establish the totality of brand meaning in customers' minds: Meaning, POP, and POD.
3. Obtain proper customer responses: Positive, accessible reactions (Judgments and Feelings).
4. Create intense, active, loyal relationships: Brand Resonance.

Marketing Communications (MarCom)

Firms attempt to inform, persuade, and remind consumers about the brands they sell. MarCom builds brand equity and brand awareness, links PODs and POPs, and elicits positive brand judgments and feelings, leading to strong customer-brand relationships.

Persuasion Process via Communication:

1. Exposure (Consumer Targeting)
2. Attention (Ad Creativity)
3. Comprehension (Consumer Understanding)
4. Yield (Brand Positioning)
5. Intent (Consumer Motivation)
6. Behavior (Ad Memorability)

Three Forms of Media:

• Paid Media
• Owned Media
• Earned Media