Tag Archives: promotion

2020 Top Global Brands

The year 2020 has been rough on businesses as they pivot to account for the pandemic. Yet, strong brands seem to have become even stronger during this time. Consumers view their purchasing choices as a vote for a brand’s value and impact.

But, what is a brand? Does a brand have a financial value? These are critical questions that drive the strategic marketing decisions of corporations around the world. In general, marketers define brand as the position that a company/product holds in the minds of the consumers. It follows then that if the brand holds a position in consumers’ minds, then it would definitely translate into a financial value for companies.

Each year, Interbrand does a financial analysis that seeks to define, in dollars, the value of a company’s brand – the result is the annual Best Global Brands ranking. In order to be included in the report:

  • The brand must be global – it must have successfully crossed geographic and cultural boundaries.
  • At least 30% of revenue must come from outside the brand’s home region.
  • The brand must have a significant presence in at Asia, Europe, and North America, as well as geographic coverage in emerging markets.
  • There must be sufficient publicly available data on the brand’s financial performance.
  • Economic profit must be expected to be positive over the longer term, delivering a return above the brand’s cost of capital.
  • The brand must have a public profile and awareness above and beyond its own marketplace.

Interbrand’s brand valuation methodology seeks to determine, in customer and financial terms, the contribution of the brand to the company’s business results. There are three key components in the methodology for the valuations: analyses of the financial performance of the branded products or services, of the role the brand plays in the purchase decision, and of the competitive strength of the brand.

Brands in the top five include Apple, Amazon, Microsoft, Google, and Samsung.

Did you guess these correctly?

Group Activities and Discussion Questions:

  1. Ask students to define “brand.” What is it? Does it have value to a company?
  2. Have students take out a piece of paper. Ask them to choose what they thing are the top 10 most valuable brands in the world.
  3. Then show the top 10 list from the Global Brand report: https://www.interbrand.com/best-brands/
  4. How many did they get correct? What surprised them?
  5. Show the video explaining the report: https://www.interbrand.com/best-brands/best-global-brands/methodology/
  6. Show students several of the sections within the site and view some of the videos as a class.
  7. Divide students into teams and assign each team an industry category to examine: automotive, apparel, beverage, electronics, energy, etc.
  8. Have each team present key findings from the industry sector they examined.
  9. How can these findings be applied in marketing strategies?

Source: Brandchannel.com, Interbrand.com

Leave a comment

Filed under Classroom Activities

Rent and return these shoes

Let’s start with a quiz: How many running or athletic pairs of shoes do you own? How long do they last? How much do you spend?

If your closet is like mine, you probably have at least six pairs, of which five pairs are very used and dirty. It would be nice if we could wear running shoes until they are worn or dirty, and then just trade it them in for a new pair. Well, as luck would have it, Swiss footwear company On Running is now offering a new running shoe called “Cyclon.” But Cyclon is not for sale – only for rent. Yes, rent. Use, wear, and return them for a new pair.

Cyclon is available for a monthly fee of $29.95. It is a subscription service for not only a performance running shoe, but a fully recyclable plant-based shoe. Castor beans are used as the base, and the shoe upper is sewn from a single piece of fabric to help reduce waste. On Running focused on the challenges of not only creating a fully recyclable shoe, but also making sure that the shoes were returned to be recycled. Thus, the subscription model of ‘rent and return’ gives On control of the recycling process.

It seems to have resonated with the market – in the first 48 hours after launching Cyclon On signed 2,000 subscribers! On needs 5,000 people to sign up per region in order to ship the shoes at reduced carbon footprint of the transportation.

Let’s go for a run!

Group Activities and Discussion Questions:

  1. Discuss a subscription business model. Poll students: What subscription services do they use? Other services they can name? (Ex: meal kits, shave clubs, entertainment, etc.).
  2. Poll students: On average, how much do they pay for a running shoe and how long does it last? How many pairs of athletic shoes do they have currently?
  3. Show On Running website: https://www.on-running.com/en-us/cyclon
  4. Show video of founders discussing Cyclon: https://youtu.be/VtosSdRZcsA
  5. What is the target market for Cyclon?
  6. What elements should be in the marketing program for this shoe?

Sources: Outside Online; other news sources

 

Leave a comment

Filed under Classroom Activities

Cheetos Spices Up Mac and Cheese!

Cheetos have long been a favorite snack food in America, but it has a fairly limited menu application. Or so one might have thought. After all, it’s just a snack food, right? Wrong! Cheetos is one of many companies responding to changing consumer behavior patterns brought about the coronavirus pandemic. In this case, the product is in response to a rise in home cooking and the desire for comfort foods. PepsiCo’s new product combines these two desires into “Cheetos Mac ‘N Cheese.” The new product is packaged in boxes and cups and is available in three powerful flavors: Bold & Cheesy, Flamin’ Hot, and Cheesy Jalapeno.

Cheetos Mac ‘N Cheese was already in development prior to the pandemic and was scheduled to be released in 2020. However, the company moved at an accelerated pace once consumer patterns shifted due to the pandemic.

The branding even extends to the shape of the curling pasta noodle, which mimics the corkscrew-shaped tail of brand mascot Chester the cheetah. Currently, the new food is only available from Walmart, but a national retail roll-out is anticipated in 2021. PepsiCo plans to promote the new product using multiple marketing channels including shopper marketing (in store), and strong social media.

Anyone hungry for some spicy mac and cheese?

Group Activities and Discussion Questions:

  1. Poll students: Who eats Cheetos? Who eats Mac and Cheese? Which brands?
  2. Show the Web site: https://www.cheetos.com/products/cheetos-mac-n-cheese-bold-cheesy
  3. Show a video of the new product: https://youtu.be/tcYk6tZ3zeI
  4. Does this new food change the positioning of Cheetos in the product life cycle?
  5. How does Cheetos Mac and Cheese compare with other companies?
  1. Build a product positioning map for mac and cheese dinners and show the competition.
  2. How should Cheetos promote its new product?

Source:  Ad Week

Leave a comment

Filed under Classroom Activities