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Intro to Principles of Business (UGBA 10) > Module 4: Marketing (Lectures 7-8) > Flashcards

Module 4: Marketing (Lectures 7-8) Flashcards

1
Q

Brands are ___ assets.

A

intangible

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2
Q

Tell me about Coca-Cola’s situation (4-5).

A

Coca-Cola has been a top 10 global brand for years!

  1. Popular, ever-expanding product offering
  2. Able to command a price premium
  3. Significant brand equity built through memorable advertising that has created high awareness and many brand associations
  4. Major employer and wealth creator for bottlers
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3
Q

Why was Coca-Cola stressed out in the early 1980s (3)?

A
  1. Being outsold by Pepsi
  2. Steady market share decline in a declining market
  3. Growing “pressure” on maintaining retailer relationships (e.g. lost the Burger King account)
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4
Q

How did Coca-Cola try to address its decline in the 1980s (2)? Was it successful?

A

Promotion (increased advertising and promotion spending) and Price (aggressive sales promotions and discounting in stores with increased prices to “captive” customers, like fast food chains)

Little success

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5
Q

How was Pepsi’s campaign stronger than Coca-Cola’s in the 1980s?

A

Pepsi’s “new generation” advertising campaign positioned Coke as old, tired, and boring – attempting to weaken Coke’s brand equity.

Michael Jackson, King of Pop vs. Bill Cosby, Dr. Huxtable

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6
Q

Where were Pepsi and Coca-Cola on the Cola Perceptual Map before the Cola Wars?

A

Pepsi and Coca-Cola were seen as neither modern nor dated, but Pepsi had a better taste.

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7
Q

What are the two axes on the Cola Perceptual Map?

A

Modern/Dated and Quality of Taste

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8
Q

Did the Cola Wars help or hurt Coca-Cola’s perception?

A

Hurt; Pepsi was seen as both modern and superior in taste, while Coca-Cola was seen as dated and having poorer taste.

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9
Q

What is usually the most effective way to regain energy and relevance?

A

Improve the Product P!

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10
Q

What did Coca-Cola do in 1985, and how did it impact their product position?

A

Introduce new Coke - a new cola formula that was able to beat Pepsi and existing Coke in blind taste tests. This made Coke’s product both more modern and better-tasting than rival Pepsi.

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11
Q

Who was New Coke aimed at?

A

?

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12
Q

What was Pepsi’s response to Coca-Cola’s new formula in 1985?

A

Pepsi released their 1985 “They changed my Coke ad.” It was an absolute failure - showing a bunch of old guys lounging around resorting to a Pepsi because Coke changed their formula. This went against their “new generation” value that they had upheld for so long.

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13
Q

What is the benefit of a strong brand?

A

Brand equity decays slowly. This helps a business withstand and recover from its mistakes.

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14
Q

Coca-Cola reigned as the #1 most valuable global brand from 2000-2010. Why the drop in 2012?

A

Apple and Google took the top two places.

“Cultural shifts don’t happen overnight. They build slowly–a sip of coconut water here, a quinoa purchase there, and suddenly, the American diet looks drastically different in 2014 than it did 10 years ago.” By 2014, Americans were drinking about 450 cans of soda a year, according to Beverage Digest, roughly the same amount they drank in 1986.

People are drinking LESS soda, more sports drinks, bottle water, wine, distilled spirits, tea…

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15
Q

What is Coca-Cola’s crown jewel?

A

Special, secret recipe

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16
Q

What is the UC Growth Driver?

A

Steady increase in serving sizes

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17
Q

About __% of Coca-Cola’s global sales come from soda.

A

70

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18
Q

Coca-Cola branded products alone count for __% of the soda industry.

A

45

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19
Q

The secret recipe was good for dramatic effect, but this conflicts with what?

A

Increasing consumer demands for transparency

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20
Q

Supersizing (aka upsizing) increase sales volumes and…

A

American waistlines!

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21
Q

In order to become relevant again, what has Coca-Cola started doing?

A

Acquiring new brands and innovating their product! They’ve acquired Honest Tea, Glaceau, invested in Keurig and Monster, and introduced Fairlife milk (high-protein, lactose-free “milk”).

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22
Q

What are Coca-Cola’s 4 current strengths?

A
  1. High brand awareness
  2. Broad, global distribution
  3. Broad product offering
  4. Non-carbonated new products
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23
Q

What are Coca-Cola’s 3 current weaknesses?

A
  1. Reliance on regular sized cans and 2-liter bottles
  2. Reliance on soda sales (still ~70% of revenue)
  3. Beverages only
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24
Q

What are Coca-Cola’s 3 opportunities?

A
  1. Increased consumer interest in portion control
  2. Interest in new flavors and ingredients
  3. Growth of healthy beverage category
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25
Q

What are Coca-Cola’s 3 threats?

A
  1. Awareness of the dangers of sugar
  2. Soda tax and bans
  3. Rising incidence of obesity and diabetes worldwide
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26
Q

What are stars?

A

Strategic brands

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27
Q

Despite its best efforts, Coca-Cola appears ___ on stars in its portfolio.

A

short

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28
Q

What is Coca-Cola’s acquisition strategy?

A

Target regional brands with at least $10 million in sales with potential to expand to $1 billion.

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29
Q

How does Coca-Cola’s brand compare with its products?

A

Brand > Products

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30
Q

Coca-Cola has a long-standing commitment to ___ ___ and ___ ___.

A

corporate citizenship, social responsibility

31
Q

Brand value is most useful when…

A

viewed relative to competitors over time as a way to understand the effectiveness of the organization’s brand-building efforts.

32
Q

Building up and maintaining brand equity is one way that marketers ensure…

A

their ability to withstand inevitable mistakes.

33
Q

What are the three ways Coca-Cola has tried to get in sync with the times?

A
  1. Offering smaller serving sizes of its soft drinks
  2. Showing it’s a good corporate citizen
  3. Expanding beyond soft drinks
34
Q

What is the way Coca-Cola is looking to generate growth and regain brand relevance?

A

Developing or acquiring and promoting new non-soda brands

35
Q

What are the two parts of brand architecture?

A
  1. Organization

2. Military Strategy

36
Q

What does brand architecture aim to do?

A

To optimize the hierarchy, linkages, and roles of brands within the portfolio in support of the business strategy

37
Q

Product, business units, specific services, marketing programs, features, line extensions, apps, websites, etc. all need to be called something. How these names relate is the difference between ___ ___ and ___ ___.

A

brand coherence, brand confusion

38
Q

What does brand architecture help organizations do?

A

Structure their brands and products to drive value and growth through greater clarity, efficiency, growth, and equity

39
Q

What are the four pillars of branch architecture?

A
  1. Clarity
  2. Efficiency
  3. Growth
  4. Equity
40
Q

Define clarity in terms of brand architecture.

A

Gives a coherent face to the offering and business strategy and distinguishes brands within the portfolio

41
Q

Define efficiency in terms of brand architecture.

A

Enables brand and marketing leverage

42
Q

Define growth in terms of brand architecture.

A

Extends credibility from existing, successful brands to new offerings

43
Q

Define equity in terms of brand architecture.

A

Extends equity by defining the relationships between brands.

44
Q

Brand architecture is ___ facing, while organization structure is ___ facing.

A

externally, internally

45
Q

What is a house of brands?

A

Independent brands, each maximizing its meaning to customers and its impact on the market.

For example, P&G owns Old Spice, Tide, and Oral-B.

46
Q

What is a hybrid brand architecture?

A

A mix between a house of brands and branded house. This includes Amazon, Starbucks, Disney and Coca-Cola.

For example, Amazon owns Amazon.com, Amazon Web Services, Zappos and Twitch.

47
Q

What is a branded house?

A

Single master brand spans entire set of offering. This includes Virgin and FedEx.

For example, FedEx owns FedEx Express and FedEx Ground.

48
Q

What are the pros of a house of brands (2)?

A
  1. Builds equity in strong stand-alone brands

2. Insulates brands from one another

49
Q

What is the con of a house of brands?

A

Requires significant marketing investment to build awareness and drive usage

50
Q

What are the pros of a hybrid (2)?

A
  1. Leverages strong master brand

2. Protects diverse businesses

51
Q

What is the con of a hybrid?

A

Requires planning to avoid confusing customers or diluting the master brand or stand alone brands

52
Q

What are the 2 pros of a branded house?

A
  1. Results in strong master brand

2. Allows for maximum marketing efficiency

53
Q

What are the 2 cons of a branded house?

A
  1. Can be difficult to extend into new categories

2. Exposes the whole portfolio to risks from any one business

54
Q

What are the three guiding principles to ensure the brand architecture has the optimal business impact?

A
  1. Coverage: Cover the market and target customer segments with the fewest brands possible
  2. Separation: Ensure room or differences between brand offerings to customers can find the solution that addresses their needs easily
  3. Efficiency: Address distinct customer needs while leveraging brand development and management costs
55
Q

Architecture guides decisions about ___ and ___ as portfolio brands compete for resources.

A

innovation, investment

56
Q

What is the role of the strategic brand?

A

Significant contributor to company’s future sales, perceptions or market position

Example: Amazon Web Services

57
Q

What is the role of the distinguisher brand?

A

Enhances the differentiation of another brand. Also referred to as “branded energizer” or silver bullet.

Example: Audible

58
Q

What is the role of the cash cow?

A

Money making brand that does not represent future significant growth.

Example: Amazon.com

59
Q

What is the role of the corporate brand?

A

May have lower visibility to customers, but important to regulatory bodies, investors, employees, trade groups, and partners.

Example: Amazon

60
Q

What is the role of the fighter/flanker brand?

A

Addresses competitive threat. Protects share of other brands in the portfolio.

Example: Amazon.com Marketplace

61
Q

Rethinking of the brand’s architecture occurs when…

A

changes in strategic direction or the addition of important new capabilities occur.

62
Q

What are the five triggers for revisiting architecture?

A
  1. Declining relevance with customers
  2. Significant merger or acquisition
  3. Too much internal competition for investment dollars
  4. Difficulty distinguishing corporate brand and product brands
  5. Brand meaning beyond credibility and effectiveness
63
Q

The way the brand architecture is organized tells you about what two things?

A
  1. The company’s priorities

2. The company’s future

64
Q

(Re)organizing architecture is based on what three things?

A
  1. Product characteristics
  2. Ingredients or components
  3. Customer usage occasion or need
65
Q

Coca-Cola is trying to venture out of drinks that are what four things?

A
  1. Caffeinated
  2. Artificially sweetened
  3. For a mass audience (as opposed to young adults, infants, older adults, etc.)
  4. A Treat (rather than other occasions like everyday nutrition or a boost)
66
Q

What is an illustrative source of growth for product characteristics?

A

Innovation in processing or packaging (cold filtered coffees, cold pressed juices, stay-cold packaging)

67
Q

What is an illustrative source of growth for ingredients?

A

Innovation in ingredients (the next acai berry, new natural sweeteners)

68
Q

What is an illustrative source of growth for customers?

A

Beverages for infants/toddlers, dieters, seniors (infant formula, low-calorie meal replacements, protein shakes)

69
Q

What is an illustrative source of growth that is based on customer usage occasion or need?

A

New occasion-based beverages (alcoholic and/or non-alcoholic drinks for celebrations, hot beverages for cold weather)

70
Q

How does architecture align business and brand goals?

A

Defining clear roles, relationships and investment priorities among brands in a business’s portfolio

71
Q

How does a coherent brand architecture make marketing more efficient and effective?

A

By ensuring customers and other stakeholders understand what the business can do for them

72
Q

An organization’s architecture can be revealing of its ___ and ___ ___, and how it views its ___ ___ ___.

A

investment, business priorities, future growth opportunities

73
Q

Brand architecture should be revisited to do what two things?

A
  1. Ensure business needs are being addressed

2. The brand structure supports the business strategy

Intro to Principles of Business (UGBA 10) (9 decks)

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