126 CHAPTER 3 • BRAND POSITIONING

BRANDING BRIEF 3-7

Disney Brand Mantra

Disney developed its brand mantra in response to its incredible growth throwgh licensing and
product development during the mid-1980s. In the late 1980s, Disney became con­
cerned that some of its characters, like Mickey Mouse
and Donald Duck, were being used inappropriately and
becoming overexposed. To investigate the severity of the
problem, Disney undertook an extensive brand audit. As part
of a brand inventory, it first compiled a list of ali Disney
products that were available (licensed and company
manufactured) and all third-party promotions (complete with
point-of-purchase displays and relevant merchandising) from
stores across the country and all over the world. At the same
time, Disney launched a major consumer research study-a
brand exploratory-to investigate how consumers felt about
the Disney brand.
The results of the brand inventory revealed some potentially
serious problems: The Disney characters were on so many prod­
ucts and marketed in so many ways that in some cases it was
difficult to discern the rationale behind the deal to start with.
The consumer study only heightened Disney's concerns.
Because of the broad exposure of the characters in the mar­
ketplace, many COJlsumers had begun to feel that Disney
Disney's brand mantra is "fun family
was exploiting its name. In some cases, consumers felt that the
entertainment."

Company offered its U.S. employees free personal computers to help them get online, it
initiated a regular communication program with employees, now called "True Blue." Disney
is seen as so successful at internal branding that its Disney Institute holds seminars on the
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~ infonned strategic positioning decisions, marketers should flrst conduct a brand audit to pro­
flle consumer knowledge structures. A brand audit is a comprehensive examination of a brand
to discover its sources of brand equity. In accounting, an audit is a systematic inspection by an
outside firm of accounting records including analyses, tests, and confirmations. 32 The
outcome is an assessment of the flrm's flnancial health in the fonn of a report.

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 BRAND AUDITS 127

characters added little value to products and, worse yet, involved children in purchase decisions
that they would typically ignore.
Because of its aggressive marketing efforts, Disney had written contracts with many of
the "park participants" for co-promotions or licensing arrangements. Disney characters
were selling everything from diapers to cars to McDonald's hamburgers. Disney learned in
the consumer study, however, that consumers did not differentiate between all the product
endorsements. "Disney was Disney" to consumers, whether they saw the characters in films,
records, theme parks, or consumer products. Consequently, all products and services that
used the Disney name or characters had an impact on Disney's brand equity. Consumers
reported that they resented some of these endorsements because they felt that they had a
special, personal relationship with the characters and with Disney that should not be
handled so carelessly.
As a result of the brand audit, Disney moved quickly to establish a brand equity team to
better manage the brand franchise and more carefully evaluate licensing and other third-party
promotional opportunities. One of the mandates of this team was to ensure that a consistent
image for Disney-reinforcing its key brand associations-was conveyed by all third-party
products and services. To facilitate this supervision, Disney adopted an internal brand mantra
of "fun family entertainment" to serve as a screening device for proposed ventures.
Opportunities that were not consistent with the brand mantra-no matter how appealing­
were rejected. For example, Disney was approached to co-brand a mutual fund in Europe that
was designed as a way for parents to save for the college expenses of their children. The
opportunity was declined despite the consistent "family" association, because Disney believed
that a connection with the financial community or banking suggested other associations that
were inconsistent with its brand image (mutual funds are rarely intended to be entertaining).

A similar concept has been suggested for marketing. A marketing audit is a "compre­
hensive, systematic, independent, and periodic examination of a company's--or business
unit's-marke~ing environment, objectives, strategies, and activities with a view of deter­
mining problem areas and opportunities and recommending a plan of action to improve the
company's marketing performance."33 The process is a three-step procedure in which the
first step is agreement on objectives, scope, and approach; the second is data collection; and

­ the third and final step is report preparation and presentation. This is an internally, com­
pany-focused exercise to make sure that marketing operations are efficient and effective.

•
A brand audit, on the other hand, is a more externally, consumer-focused exercise to
assess the health of the brand, uncover its sources of brand equity, and suggest ways to
improve and leverage its equity. A brand audit requires understanding the sources of brand.
equity from the perspective of both the firm and the consumer. From the perspective of the
firm, what products and services are currently being offered to consumers, and how they
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are being marketed and branded? From the perspective of the consumer, what deeply held
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perceptions and beliefs create the true meaning of brands and products?
The brand audit can set strategic direction for the brand, and management should con­
duct one whenever important shifts in strategic direction are likely.34 Are the current
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 128 CHAPTER 3 • BRAND POSITIONING

sources of brand equity satisfactory? Do certain brand associations need to be strength­

ened? Does the brand lack uniqueness? What brand opportunities exist and what potential
challenges exist for brand equity? As a result of this strategic analysis, management can
put a marketing program into place to maximize long-term brand equity.
Conducting brand audits on a regular basis such as annually allows marketers to keep
their fingers on the pulse of their brands so they can more proactively and responsively
manage them. Brand audits are thus particularly useful background for managers as they
set up their marketing plans.
Brand audits can have profound implications on the strategic direction for brands and
their resulting performance. As a result of a brand audit, luxury goods marketer Alfred
Dunhill refined its classic "English" appeal-which has been especially valuable in
Asia-to take on more of a dynamic, international flavor. In Europe, the results of a brand
audit led Polaroid to try to change its conventional photography image to emphasize the
. "fun side" of its cameras. Polaroid learned from research that its cameras could act as a
social stimulant and catalyst, provoking fun moments in people's lives, a theme that was
picked up in advertising and suggested the creation of new distribution strategies.
The brand audit consists of two steps: the brand inventory and the brand exploratory.
We'll discuss each in tum. Brand Focus 3.0 illustrates a sample brand audit using the
Rolex brand as an example.

Brand Inventory
The purpose of the brand inventory is to provide a current, comprehensive profile of how
all the products and services sold by a company are marketed and branded. Proftling each
product or service requires marketers to catalogue the following in both visual and written
form for each product or service sold: the names, logos, symbols, characters, packaging,
slogans, or other trademarks used; the inherent product attributes or characteristics of the
brand; the pricing, communications, and distribution policies; and any other relevant
marketing activity related to the brand.
The outcome should be an accurate, comprehensive, and up-to-date profile of how all
the products and services are branded in terms of which brand elements are employed and
how, and the nature of the supporting marketing program. Marketers should also profile
competitive brands in as much detail as possible to determine points of parity and points
of difference.

Rationale. The brand inventory is a valuable first step for several reasons. First, it helps
to suggest what consumers' current perceptions may be based on. Consumer associations
are typically rooted in the intended meaning of the brand elements attached to t.lJ.em-but
not always. The brand inventory therefore provides useful information for interpreting
follow-up research such as the brand exploratory we discuss next.

- Although the brand inventory is primarily a descriptive exercise, it can supply some
useful analysis too, and initial insights into how brand equity may be better managed. For
example, marketers can assess the consistency of all the different products or services shar­
II ing a brand name. Are the different brand elements used on a consistent basis, or are there
many different versions of the brand name, logo, and so forth for the same product-perhaps
for no obvious reason--depending on which geographic market it is being sold in, which
market segment it is being targeted to, and so forth? Similarly, are the supporting marketing
programs logical and consistent across related brands? As firms expand their products
geographically and extend them into other categories, deviations-sometimes significant in
nature-commonly emerge in brand appearance and marketing. A thorough brand inventory
should be able to reveal the extent of brand consistency.
 BRAND AUDITS 129

At the same time, a brand inventory can reveal a lack of perceived differences among
different products sharing the brand name-for example, as a result of line extensions-that
are designed to differ on one or more key dimensions. Creating sub-brands with distinct
positions is often a marketing priority, and a brand inventory may help to uncover undesir­
able redundancy and overlap that could lead to consumer confusion or retailer resistance.

Brand Exploratory
Although the supply-side view revealed by the brand inventory is useful, actual consumer
perceptions, of course, may not necessarily reflect those the marketer intended. Thus, the
second step of the brand audit is to provide detailed information about what consumers
think of the brand by means of the brand exploratory. The brand exploratory is research
directed to understanding what consumers think and feel about the brand and its corre­
sponding product category in order to identify sources of brand equity.

Preliminary Activities. Several preliminary activities are useful for the brand
exploratory. First, in many cases, a number of prior research studies may exist and be
relevant. It is important to dig through company archives to uncover reports that may have
been buried, and perhaps even long forgotten, but that contain insights and answers to a
number of important questions or suggest new questions that may still need to be posed.
Second, it is also useful to interview internal personnel to gain an understanding of
their beliefs about· consumer perceptions for the brand and competitive brands. Past and
current marketing managers may be able to share some wisdom not necessarily captured in
prior research reports.
The diversity of opinion that typically emerges from these internal interviews serves
several functions, increasing the likelihood that useful insights or ideas will be generated,
as well as pointing out any inconsistencies or misconceptions that may exist internally for
the brand. Still, additional research is often required to better understand how customers
shop for and use products and services and what they think of various brands. To allow
marketers to cover a broad range of issues and to pursue some in greatei:.depth, the brand
exploratory often employs qualitative research techniques, as summarized in Figure 3-6.

Interpreting Qualitative Research. In choosing the range of possible qualitative

research techniques to include in the brand exploratory, Gardner and Levy note:

The emphasis in such research must necessarily be given to skill in interpretation

and to reaching a coherent picture of the brand. The researchers must allow their

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I Free association Day/Behavior reconstruction
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- I Adjective ratings and checklists PhotolWritten journal

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I Confessional interviews Participatory design
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I Projective techniques Consumer-led problem solving

• Photo sorts
Archetypal research
Bubble drawings
Store telling
Personification exercises
Role playing
Real-life experimenting
Collaging and drawing
Consumer shadowing
Consumer-product interaction
Video observation
, Metaphor elicitation* FIGURE 3-6
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1 ----------------------------------------------­ ~ Techniques
 130 CHAPTER 3 • BRAND POSITIONING

respondents sufficient self-expression so that the data are rich in complex evalua­
tions of the brand. In this way, the consumer's thoughts and feelings are given prece­
dence rather than the preconceptions of the researchers, although these are present
too in hypotheses and questions. 35

Levy identifies three criteria by which we can classify and judge a qualitative research
program: direction, depth, and diversity.36 For example, any projective technique varies in
terms of the nature of the stimulus information (is it related to the person or the brand?),
the extent to which responses are superficial and concrete as opposed to deeper and more
abstract (and thus requiring more interpretation), and the way the information relates to
information gathered by other projective techniques.
In Figure 3-6, the tasks at the top of the left-hand list ask very specific questions
whose answers may be easier to interpret. The tasks on the bottom of the list ask questions
that are much richer but also harder to interpret. Tasks on the top of the right-hand list are
elaborate exercises that consumers undertake themselves and that may be either specific or
broadly directed. Tasks at the bottom of the right-hand list consist of direct observation of
consumers as they engage in various behavior.
According to Levy, the more specific the question, the narrower the range of informa­
tion given by the respondent. When the stimulus information in the question is open-ended
and responses are freer or less constrained, the respondent tends to give more information.
The more abstract and symbolic the research technique, however, the more important it is
to follow up with probes and other questions that explicitly reveal the motivation and
reasons behind consumers' responses.
Ideally, qualitative research conducted as part of the brand exploratory should vary
in direction and depth as well as in technique. The challenge is to provide accurate
interpretation-going beyond what consumers explicitly state to determine what they
implicitly mean.

Conducting Quantitative Research.. Qualitative research is suggestive, but a more

definitive assessment of the depth and -breadth of brand awareness and the strength,
favorability, and uniqueness of brand associations often requires a quantitative phase of
research.
The guidelines for the quantitative phase of the exploratory are relatively straightfor­
ward. Marketers should assess all potentially salient associations identified by the qualita­
tive research phase according to their strength, favorability, and uniqueness. They should
examine both specific brand beliefs and overall attitudes and behaviors to reveal potential
sources and outcomes of brand equity. And they should assess the depth and breadth of
brand awareness by employing various cues. Typically, marketers will also need to conduct
similar types of research for competitors to better understand their sources of brand equity
and how they compare with the target brand.

-
Much of the above discussion of qualitative and quantitative measures has concen­
trated on associations to the brand name-for example, what do consumers think about the
brand when given its name as a probe? Marketers should study other brand elements in
II
the brand exploratory as well, because they may trigger other meanings and facets of the
brand. For instance, we can ask consumers what inferences they make about the brand on
the basis of the product packaging, logo, or other attribute alone, such as, "What would
you think about the brand just on the basis of its packaging?" We can explore specific
, aspects of the brand elements-for example, the label on the package or the shape of the
package itself-to uncover their role in creating brand associations and thus sources of
brand equity. We should also determine which of these elements most effectively repre­
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sents and symbolizes the brand as.a whole.
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 REVIEW 131

Brand Positionhlg and the Supporting Marketing Program

The brand exploratory should uncover the current knowledge structures for the core brand
and its competitors, as well as determining the desired brand awareness and brand image
and points of parity and points of difference. Moving from the current brand image to the
desired brand image typically means adding new associations, strengthening existing
ones, or weakening or eliminating undesirable ones in the minds of consumers. John
Roberts, a leading marketing academic in Australia, sees the challenge in achieving the
ideal positioning for a brand as being able to achieve congruence among what customers
currently believe about the brand (and thus find credible), what customers will value in
the brand, what the firm is currently saying about the brand, and where the firm would
like to take the brand.
A number of different internal management personnel can be part of the planning and
positioning process, including brand, marketing research, and production managers, as can
relevant outside marketing partners like ad agency representatives. Once marketers have a
good understanding from the brand audit of current brand knowledge structures for their
target consumers and have decided on the desired brand knowledge structures for optimal
positioning, they may still want to do additional research testing alternative tactical pro­
grams to achieve that positioning.

Review
According to the customer-based brand equity model, deciding on a positioning requires
determining a frame of reference (by identifying the target market and the nature of com­
petition) and the ideal points of parity and points of difference brand associations.
Marketers need to understand consumer behavior and the consideration sets that con­
sumers adopt in making brand choices.
Points of difference are those associations that are unique to the brand, strongly held,
and favorably evaluated by consumers. Marketers should find points o(difference associa­
tions that are strong, favorable, and unique based on desirability and deliverability consid­
erations, as well as the resulting anticipated levels of sales and costs that might be expected
with achieving those points of difference. Points of parity, on the other hand, are those
associations that are not necessarily unique to the brand but may in fact be shared with
other brands. Category points of parity associations are necessary to being a legitimate and
credible product offering within a certain category. Competitive points of parity associa­
tions negate competitors' points of differences. The choice of these four ingredients deter­
mines the brand positioning and the desired brand knowledge structures.
A broader set of considerations is also useful for positioning, especially for a more
developed brand that spans multiple categories. A mental map accurately portrays in detail
all salient brand associations and responses for a particular target market. Core brand asso­
- ciations are those sets of abstract associations that characterize the 5 to 10 most important

•
aspects or dimensions of a brand. Core brand associations can serve as the basis of brand
positioning as they can represent points of parity and points of difference. Finally, a brand
mantra is an articulation of the "heart and soul" of the brand, a three- to five-word phrase.
that captures the irrefutable essence or spirit of the brand positioning and brand values. Its
purpose is to ensure that all employees and all external marketing partners understand what
the brand is, most fundamentally, in order to represent it with consumers
A brand audit is a consumer-focused exercise to assess the health of the brand, uncover
its sources of brand equity, and suggest ways to improve and leverage its equity. It requires
understanding brand equity from the perspective of both the firm and the consumer.
 132 CHAPTER 3 • BRAND POSITIONING

The brand audit consists of two steps: the brand inventory and the brand exploratory.
The purpose of the brand inventory is to provide a complete, up-to-date profile of how all
the products and services sold by a company are marketed and branded. Profiling each prod­
uct or service requires us to identify the associated brand elements as well as the supporting
marketing program. The brand exploratory is research activity directed to understanding
what consumers think and feel about the brand to identify sources of brand equity.
Once marketers have determined the brand positioning strategy, they can put into
place the actual marketing program to create, strengthen, or maintain brand associations.
Chapters 4 through 7 in Part III of the text describe some of the important marketing mix
issues in designing supporting marketing programs.

Discussion Questions
1. Apply the categorization model to a product category other than beverages.
How do consumers make decisions whether or not to buy the product, and how
do they arrive at their final brand decision? What are the implications for brand
equity management for the brands in the category? How does it affect position­
ing, for example?
2. Pick a brand. Describe its breadth and depth of awareness.
3. Pick a category basically dominated by two main brands. Evaluate the posi­
tioning of each brand. Who are their target markets? What are their main
points of parity and points of difference? Have they defined their positioning
correctly? How might it be improved?
4. Can you think of any negatively correlated attributes and benefits other than
those listed in Figure 3-4? Can you think of any other strategies to deal with
negatively correlated attributes and benefits?
5. Think of one of your favorite brands. Can you corne up with a brand mantra to
capture its positioning?

Rolex Brand Audit

Brand Inventory
- "The name of Rolex is synonymous with quality. Rolex-with its rigorous series of
tests that intervene at every stag~has redefined the meaning of quality"
II -Rolex.com

History Rolex obtained the first official chronometer certification

Rolex began when German-born Hans Wilsdorf and his
brother-in-law, William Davis, founded the London-based
company Wilsdorf & Davis in 1905. Wilsdorf registered the
brand, Rolex, in Switzerland in 1908 and in 1910 created a
timepiece that was small enough to be worn on the wrist.
for a wristwatch that same year.
In 1912, Rolex moved its headquarters to Geneva,
Switzerland, where it remains today. In 1914, a Rolex
wristwatch obtained the first Kew "A" certificate after
passing the world's toughest timing test. Twelve years
 BRAND FOCUS 3.0 133

later, Wilsdorf developed and patented the now famous
Oyster waterproof case and screw crown. This mechanism
revolutionized the watch industry as the first true protec­
tion against water, dust, and dirt. 37
The Oyster was put to the test on October 7, 1927,
when Mercedes Gleitze swam the English Channel wear­
ing an Oyster. She emerged 15 hours later with the watch
functioning perfectly, much to the amazement of all.
Gleitze became the first of a long list of "ambassadors"
Rolex uses to promote their wristwatches.
In 1931, Rolex pushed innovation in watches one step
further by creating the Perpetual self-winding fotor mech­
anism. This rotor keeps the watch at an optimal tension
and activates with the slightest movement of the wrist,
therefore eliminating the need to wind the watch.
Private Ownership
Rolex is a privately owned company and has been
controlled by only three peop1e in its 100-year history.
This has enabled the company to maintain a consistent
focus on its core business. Andre Heiniger, managing
chairman of Rolex through the 1980s, stated, "Rolex's
strategy is oriented to marketing, maintaining quality, and
staying out of fields where we are not prepared to compete
effectively."
Product-Related Attributes
Throughout the years, Rolex timepieces have maintained the
highest quality, durability, and prestige on which they origi­
nally were founded. Each Rolex consists of 10 unique
features that the company states as its "10 Golden Rules:,,38
1. Waterproof case
2. Perpetual rotor
3. The case back
4. The Oyster case
5. The winding crown
6. The finest and purest materials
7. Quality control
8. Rolex self-winding movement
9. Testing from the independent Controle Official Suisse
des Chronometres
10. Rolex testing
Rolex Brand Portfolio
Rolex includes three family brands of wristwatches, called
"collections," each with a subset of brands (see Figure 3-7).
• The Oyster Perpetual Collection includes the
"traditional" Rolex wristwatch and has eight sub­
brands that are differentiated by features and design.

­
•