STRONG BRANDS – How Brand Strategy And Brand

Master Thesis in MarketingSTRONG BRANDSHow Brand Strategy and Brand Communication Contribute to Build BrandEquityTHE CASE OF NAVIGATORStudent: Daniela Yasenova BaevaSupervisor: Professor Doctor Arnaldo Fernandes Matos CoelhoMay, 2011

Master Thesis in MarketingSTRONG BRANDS – How Brand Strategy and Brand Communication Contribute to Build Brand Equity: THE CASE OF NAVIGATORABSTRACTIn a world of global competition that we are living nowadays, brands are each time moreused by companies as a strategy to create value and differentiation and this way to beone step ahead of their rivals.A "brand" is the result of the recognition and the personal attachment that forms in thehearts and minds of the customers through their accumulated experience with that“brand”. These experiences contribute to increased consumer trust and loyalty and allowbuilding strong relationships with the “brand”. By this way, “brands” promote the increaseof shareholder value and establish a long-term advantage in the marketplace fororganisations.Companies recognise that strong brands are and have been historically associated withaccelerated revenue growth and improved returns to shareholders. That is why, each timemore organisations focus their strategies on building powerful brands as they representcompetitive advantage and they are a key success factor in creating value to thecustomer and at the same time value to the company.In this regard, this study intends to show how effective brand strategy and brandcommunication contribute to build brand equity and consequently create a strong brand.For this purpose, the case study of Navigator was chosen, being a good example to showhow the brand has been managed to become a powerful brand in the premium officepaper segment.Key words: Branding, Strong Brands, Brand Strategy, Brand Communication, Brand Equity,Navigator1

Master Thesis in MarketingSTRONG BRANDS – How Brand Strategy and Brand Communication Contribute to Build Brand Equity: THE CASE OF NAVIGATORRESUMONum mundo de concorrência global em que vivemos no presente momento, as marcassão, cada vez mais, utilizadas pelas empresas como uma estratégia para criar valor ediferenciação, para deste modo se poderem distanciar dos seus concorrentes.Uma “marca” é o resultado do reconhecimento e da ligação pessoal que se forma noscorações e mentes dos consumidores através das experiências acumuladas dos mesmoscom a referida “marca”. Estas experiências contribuem para o aumento da confiança efidelização dos consumidores para com a “marca” e permitem a criação de laços fortescom a mesma. Deste modo, as “marcas” promovem o incremento de valor para os seusaccionistas e estabelecem uma vantagem a longo prazo no mercado para asorganizações.As empresas reconhecem que marcas fortes estão e estiveram historicamente associadasa crescimento acelerado de receitas para as empresas e a um incremento darentabilidade para os seus accionistas. Esta é a razão pela qual, cada vez mais asorganizações focam as suas estratégias na criação de marcas fortes, dado que asmesmas representam vantagens competitivas e são factores chaves na criação de valorpara o consumidor e ao mesmo tempo de criação de valor para as empresas.Deste modo, é pretensão com o presente estudo demonstrar a eficiência da estratégiada marca e da comunicação da marca na construção do valor da marca econsequentemente na criação de marcas fortes.Com este intuito, o estudo de caso da marca Navigator foi escolhido, sendo um bomexemplo de como a marca tem sido gerida de modo a tornar-se uma marca forte nosegmento premium de papel de escritório.Palavras-chave: Branding, Marca Forte, Estratégia da Marca, Comunicação da Marca,Valor da Marca, Navigator2

Master Thesis in MarketingSTRONG BRANDS – How Brand Strategy and Brand Communication Contribute to Build Brand Equity: THE CASE OF NAVIGATORACKNOWLEDGEMENTSThe realisation of this master thesis would not have been possible without the collaborationand support of a number of people and institutions, to who I would like to thank sincerely.First of all I would like to thank to the institutions, without which I would not be able tocomplete this study: The Faculty of Economics of the University of Coimbra and PortucelSoporcel group.I would like also to take the opportunity to offer my deepest thanks to my thesis supervisor,Professor Dr. Arnaldo Coelho, for the help and guidance I received from him throughoutmy master studies.Following, I would like to express my gratitude to Dr. António Mamede, Chief of CustomerService Department at Portucel Soporcel group, for all the support and suggestions giventhroughout the process of this thesis, to Ricardo Ferreira, Brand Manager of the brandNavigator, for the provided information, for all support and directions offered.I could not have completed this research without the constant support and friendship ofmy direct colleagues at Portucel Soporcel group; therefore I would like to express mysincere thanks to all of them.I would like to express my heartfelt gratitude to my family and my boyfriend. Their warm,wise and optimistic support has been an inspiration which has contributed in many ways tomy achievements. Thank you for all of the unconditional love and support you gave meduring my whole life.A big thank you to all my friends who have not only encouraged me during my studies andresearch, but have also been very patient and understanding when I was not able tomake time for them as often as we would have liked.Thank you, to all of you!3

Master Thesis in MarketingSTRONG BRANDS – How Brand Strategy and Brand Communication Contribute to Build Brand Equity: THE CASE OF NAVIGATORTABLE OF CONTENTSABSTRACT . 1RESUMO . 2ACKNOWLEDGEMENTS . 3TABLE OF CONTENTS. 4Tables . 7Figures . 7Graphs . 8Legend . 8CHAPTER 1. RESEARCH FORMULATION . 111.1. Reason for Research . 111.2. Research Objective . 111.3. Structure of the Research . 12CHAPTER 2. LITERATURE REVIEW . 132.1. Introduction to Branding . 132.2. What is a Brand? . 152.3. Emerging Characteristics of Brands . 162.4. Branding Principles . 172.5. Brand Functions . 202.5.1. Brand Functions from Customer Perspective . 202.5.2. Brand Functions from Company Perspective . 212.6. Brand Strategy . 222.6.1. Brand Elements . 232.6.2. Brand Identity . 282.6.3. Brand Personality . 312.6.4. Brand Perceptions . 332.6.5. Brand Positioning . 352.6.6. Brand Value Choice . 362.7. The Concept of Brand Equity . 372.7.1. Brand Awareness . 442.7.2. Brand Loyalty . 472.7.3. Perceived Quality . 484

Master Thesis in MarketingSTRONG BRANDS – How Brand Strategy and Brand Communication Contribute to Build Brand Equity: THE CASE OF NAVIGATOR2.7.4. Brand Associations . 492.8. Brand Communication . 51CHAPTER 3.CONCEPTUAL FRAMEWORK . 553.1. Paradigm Identification . 553.2. General Objectives and Specific Objectives . 563.3. Investigation Model . 57CHAPTER 4. RESEARCH METHODOLOGY. . 594.1. Research Method . 594.2. Type of Research . 604.2.1. Exploratory Research . 604.3. Characteristics of Case Study Method . 614.4. The Reason Why Case Study Was Chosen as a Research Method . 634.5. Strengths and Weaknesses of Case Study Research Method . 64CHAPTER 5. PORTUCEL SOPORCEL GROUP . 675.1. Portucel Soporcel Group Profile . 675.1.1. Group History . 675.1.2. 2010 Figures. 685.1.3. Portucel Soporcel Group Structure and Major Holdings . 695.1.4. Workforce and Industrial Units . 705.1.5. Mission, Vision and Values . 725.2. The Industry Where Portucel Soporcel Group Operates . 735.2.1. Commercial Network . 745.2.2. Sales Distribution and Market Shares (2009) . 745.3. Portucel Soporcel Business Model and Main Strategic Dimensions . 765.4. gPS Products and Brands . 775.4.1. Brand Performance . 825.5. Some Curious Facts about Portucel Soporcel Group. 85CHAPTER 6. THE CASE STUDY OF NAVIGATOR . 866.1. Brand History and Evolution . 876.2. Navigator Product Features . 896.3. Navigator Brand Strategy . 916.3.1. Navigator Brand Elements and Personality . 916.3.2. Navigator Brand Values . 946.3.3. Navigator Brand Positioning and Value Proposition . 956.4. Navigator New Image and Rebranding 2011 . 975

Master Thesis in MarketingSTRONG BRANDS – How Brand Strategy and Brand Communication Contribute to Build Brand Equity: THE CASE OF NAVIGATOR6.5. Navigator Product Range . 996.6. Navigator Brand Communication Programme . 1016.7. Navigator Brand Equity and Brand Performance . 1056.7.1. Opticom’s “Brand Equity Tracking Survey – Office Paper 2009” . 1056.7.1.1. Brand Awareness and Brands Bought.1076.7.1.2. Buying Behaviour and Satisfaction.1086.7.1.3. The Opticom Brand Equity Index.1166.8. Value to the Company and Value to the Customer . 118CHAPTER 7. CONCLUSION . 1217.1. Main Findings Obtained From the Case Study of Navigator . 1227.2. Limitations of the Chosen Methodology . 1277.3. Recommendations for Future Research . 128BIBLIOGRAPHY . 130Official Company Documents Consulted . 139Websites Visited . 139APPENDIX . 140Appendix: Interview Guide . 1416

Master Thesis in MarketingSTRONG BRANDS – How Brand Strategy and Brand Communication Contribute to Build Brand Equity: THE CASE OF NAVIGATORTablesTable 1: The Functions of the brand for the consumer . 20Table 2: Brand elements . 23Table 3: Critique of brand element options . 24Table 4: Brand personality drivers . 33Table 5: Strengths of qualitative research . 65Table 6: Weaknesses of qualitative research. 65Table 7: Key figures, 2010 . 69Table 8: gPS Mission , vision and values . 72Table 9: gPS Strategy . 76Table 10: Division of interviews per gender, office size and country .106Table 11: Development of brand awareness and brands bought 2004-2009 for mill brands.107Table 12: Quality- and product-related buying determinants .109Table 13: Product-quality related criteria and their order of importance per country .111Table 14: Strengths and weaknesses top brands .112Table 15: Brand equity index results .117FiguresFigure 1: The brand system: power of influence . 16Figure 2: Sequence of the brand building processes . 18Figure 3: The role of brands from company perspective . 21Figure 4: The relationship between the elements of a brand . 25Figure 5: Identity and image . 29Figure 6: Brand identity perspectives . 30Figure 7: Brand personality . 32Figure 8: From awareness to financial value . 38Figure 9: How brand equity generates value . 40Figure 10: Customer-based brand equity pyramid: CBBE-model . 41Figure 11: The graveyard model . 46Figure 12: Integrating marketing communications to build brand equity . 527

Master Thesis in MarketingSTRONG BRANDS – How Brand Strategy and Brand Communication Contribute to Build Brand Equity: THE CASE OF NAVIGATORFigure 13: Investigation model . 57Figure 14: gPS Shareholder structure . 69Figure 15: gPS Major holdings . 70Figure 16: European UCW market . 73Figure 17: Mill sites Europe . 73Figure 18: Location of production units and subsidiaries. 74Figure 19: Sales distribution worldwide (%) . 75Figure 20: Sales distribution Europe (%) . 75Figure 21: gPS Market shares . 75Figure 22: gPS Business model . 76Figure 23: Navigator brand personality . 93Figure 24: Market segmentation office papers . 96Figure 25: Example presentation gap analysis results .110Figure 26: Opticom brand equity index .116GraphsGraph 1: Brand performance, Western Europe . 82Graph 2: Spontaneous brand awareness Western Europe . 83Graph 3: Main brand used graphical . 84Graph 4: Quality perception graphical . 84Graph 5: Spontaneous awareness development top ten brands .108Graph 6: Buying frequency for top brands .114Graph 7: Relative switching likelihood per country .1158