Lesson 1 : Brands

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1- Work with a partner. List some of your favourite brands. Then answer these questions.
1 Do you / Would you buy any of the following brands? Why? / Why not?

2 Which of the brands above do you think feature in the top-ten Interbrand list in both 1999 and 2007?

3 Pick some of the brands above which interest you. What image and qualities does each one have? Use these words and phrases to help you.

4 How loyal are you to the brands you have chosen? For example. when you buy jeans, do you always buy Levi's? Why do people buy brands?

5 Why do you think some people dislike brands?

2- Listen to two speakers talking about brands. What reasons does each person give for liking or disliking brands? Which person do you agree with?

Vocabulary

Brand management

Match these word partnerships to their meanings. (write the correct letter)
1- Brand
1.loyalty a) the title given to a product by the company that makes it
2.image b) using an existing name on another type of product
3.stretching c) the ideas and beliefs people have about a brand
4.awareness d) the tendency to always buy a particular brand
5.name e) how familiar people are with a brand (or its logo and slogan)

2- Product

6.launch f) the set of products made by a company
7. lifecycle g) the use of a well-known person to advertise products
8. range h) when products are used in films or TV programmes
9. placement i) the introduction of a product to the market
10. endorsement j) the length of time people continue to buy a product

3- Market

11.leader k) the percentage of sales a company has
12. research l) customers of a similar age, income level or social group
13. share m) the best-selling product or brand in a market
14. challenger n) information about what consumers want or need
15. segment o) the second best-selling product or brand in a market

B R A N D

Complete these sentences with word partnerships from the previous Exercise. (loyalty- image-stretching - awareness -name)

1 No one recognises our logo or slogan. We need to spend more on advertising to raise brand

2 Consumers who always buy Sony when they need a new TV are showing

3 A fashion designer who launches his o r her own perfume is an example of

4 The of Mercedes-Benz is such that its products are seen as safe, reliable, luxurious, well made and expensive.

P R O D U C T

launch - lifecycle - range - placement - endorsement

5 George Clooney advertising Nespresso is an example of

6 A consists of introduction, growth, maturity and decline.

7 Tesco's wide means that it appeals to all sectors of the UK market.

8 The use of Aston Martin cars and Sony computers in James Bond films are examples of

M A R K E T

leader - research - share - challenger - segment

9 Microsoft is the in computer software.

10 In countries with ageing populations, the over·60s age group is becoming an
increasingly important

11 Pepsi is the in carbonated soft drinks.

12 Focus groups and consumer surveys are ways of conducting

Discuss these questions.
1 What are the advantages and disadvantages for companies of product endorsements?
2 How can companies create brand loyalty?
3 Can you give any examples of successful or unsuccessful brand stretching?
4 Think of a cheap or expensive idea for a product launch.
5 What other market segments can you identify (e.g. young singles).
6 What action can companies take if they start to lose market share?

Reading

Building luxury brands

1- What is the brand image of Dior?

2- Skim the article on the opposite page quickly and say which of the following points are mentioned:

1 The high profit margins on bags
2 Investing in markets that may take some time to grow
3 People are ready to pay a lot of money for very high·quality things because they are beautiful.
4 Building customer loyalty through ready·to-wear

Read the article and complete the notes in the maps below. Then correct the ten mistakes.

understand - label - demands -forget - exclusivity - double - of luxury - look for

1- 2- 3- 4-

5- 6- 7- 8-

Language Review : Present simple and present continuous

The present simple and the present continuous have several uses.
• We use the present simple to give factual information, for example about company activities.
Christian Dior Couture makes luxury, ready-to-wear fashion.
Dior Homme targets the male consumer.
• We use the present simple to talk about routine activities or habits.
Toledano routinely communicates with his demanding boss.
Toledano travels every week to one of Dior's 224 stores.
• We use the present continuous to talk about ongoing situations and projects.
Fashion house Christian Dior is now selling baby bottles.
• We use the present continuous to talk about temporary situations.
Dior is currently looking to recruit a marketing director for the UK and Ireland.

Which of the time expressions below do we usually use with the present simple? Which do we usually use with the present continuous? Which are used with both?

Complete these sentences with the present simple or the present continuousform of the verbs in brackets.

1 a) At the moment, eBay (work) with brand owners to remove fake items.
b) eBay now (spend) $20m a year analysing suspicious sales.
2 a) Louis Vuitton usually (seli) its products through authentic Louis Vuitton boutiques.
b) At the moment, Louis Vuitton (negotiate) with Hubert de Givenchy.
3 a) Both Apple and BlackBerry (launch) important new products this year.
b) These days, a lot of people (have) a BlackBerry.

Complete this text with the present simple or the present continuous form of the verbs in brackets.

The Google brand 1 (grow) rapidly. According to the Millward Brown Brandz report, it 2 (hold) first place in the list of top 100 brands. In fact, the IT field 3 (dominate) the top-ten corporate brands. Google 4 (operate) websites at many international domains, the most popular being www.google.com. and 5 (generate) revenue by providing effective advertising opportunities. Google always 6 (focus) on the user, and consumers usually . 7 (see) Google as quite trustworthy.
Nowadays, companies 8 (begin) to recognise that brands are amongst their most valuable assets. They understand that brands 9 (become) ever more powerful in driving business growth. Strong brands 10 (generate) superior returns and protect businesses from risk. Google currently 11 (hold) the top position, but it has to keep innovating if it wants to remain number one. BlackBerry and Apple are the two fastest-growing brands in the top 100, and China Mobile 12 (grow) steadily, too.

Skills : Taking part in meetings

Four marketing executives at a sports sponsorship agency are talking about finding a new sponsor for their client, a well-known media company, Listen to the conversation and answer the questions.

1 Why does the client want to change the sport they sponsor?
2 Which four sports do the executives consider?
3 Which sport does Mario suggest? Why does he suggest it?
4 What must David do before he contacts Larry Harrington's agent?

Listen again and complete the extract.

Joy : Well, there are several possibilities, 1 ice hockey? It's an incredibly fast. exciting sport, it's very popular in America and in a lot of European countries .
David : OK. that's a possibility 2, Natasha? Would ice hockey be a good choice?
Natasha : Mmm, 3 It's not really an international sport, is it? Not in the same way as baseball, for example. or ... tennis.
David : 4 - baseball's got a lot more international appeal. and it's a sport that's got a good image. I don't know about tennis - I'm not sure it would be suitable. Mario, 5?
Mario : 6 . motor racing would be perfect for our client. It's fast. exciting. and the TV coverage of Formula One races is excellent. They would get a lot of exposure, it will really strengthen their image.
David : That's a great idea. Mario 7 get in touch with Larry Harrington's agency and see if he's interested? Harrington's young. exciting - he'd probably jump at the chance to work with our client. They're a perfect match. But first I must check with our client and make sure they're happy with our choice.

Which of the phrases in the previous exercise B are:

1 asking for opinions? 2 agreeing or disagreeing?

3 giving opinions? 4 making suggestions?

D Role-play this situation.

Jeanne de Brion is a jewellery company in Boston. USA. A year ago. it launched a line of jewellery with the brand name ·Cecile·. This is the name of the French designer who created the collection. Unfortunately. the Cecile line has not achieved its sales targets. Three directors of the company meet to discuss how to improve sales.

Work in groups of three, Read your role cards, then role-play the discussion.

HUDSON CORPORATION
luxury luggage manufacturer is facing increased competition from cheaper imports. It must decide how to protect its brand and create new markets for its products.

listen and make notes on the key points.

Four of Hudson's American managers are talking about the problems they could face in Europe.

MARKETING STRATEGIES FOR EUROPE - OPTIONS

Reposition the brand
Sell Hudson suitcases and bags at medium price ranges. Manufacture the products in a country where labour costs are low, e.g. India or China. Do not promote the products as 'Made in America'. Use a high-volume, low-cost strategy for Hudson's core products.

Develop the Hudson brand
Promote the Hudson products as an exclusive brand and keep the 'Made in America' tag. Sell the products in the higher price ranges. Use product placement in films and television to support the brand. Hire a famous, sophisticated, influential man and woman to endorse the products. Two well-known French film stars have shown interest in endorsing a new range.

Hire a top designer
Employ a top designer to produce a new range of smaller suitcases and shoulder bags aimed at businesspeople travelling in Europe and at rich, younger, fashion-conscious buyers. Sell the products under a new label.

Develop a wider product range
Sell a wider range of products under the Hudson label, e.g. trolley-backpacks, document cases, briefcases, name-card holders, shoulder bags for men and women. Sell at lower, competitive prices.

Stretch the Hudson brand
Put the Hudson brand on high-quality watches and jewellery. Make an agreement with the Swiss manufacturers of these top-of-the-range products.

Develop sales using e-commerce
Sell the existing product lines via the Internet at very competitive prices.

Questions :

1 Work in small groups as directors of the Hudson Corporation.
Hold an informal meeting. Consider the advantages and disadvantages of each option listed above. Choose two of the marketing strategies which Hudson should focus on to expand sales in European markets.
2 Meet as one group and decide which two marketing strategies you will use to develop sales in European markets.

Writing

As the CEO of Hudson Corporation, write an e-mail to the head of European Marketing Associates, David Wright, summarising the actions you agreed to take at your meeting, with your reasons. Suggest a time for a meeting with David Wright and his associates.

Lesson 1 : Brands

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