Chair of innovative Brand Management University of Bremen Lehrstuhl für innovatives Markenmanagement (LiM) Universität Bremen

Transcription

1 Chair of innovative Management University of Bremen Lehrstuhl für innovatives Markenmanagement (LiM) Universität Bremen Prof. Dr. Christoph Burmann, Dr. Rico Piehler, Chair of innovative Management, University of Bremen - 1 -

2 Strategy Changes, Flexibility and Management CASiM Conference Change Management Leipzig, July 4, 2013 Univ.-Prof. Dr. Christoph Burmann Dr. Rico Piehler University of Bremen Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 2

3 Agenda 1 Strategy Changes and Flexibility: Dynamic Management Challenges of Dynamic Management Level of Change Internal Implementation Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 3

4 Dynamic brand management means change of identity Promise Expectations Identity (Self-image) Behaviour Experiences Image (Public image) Internal Target Groups External Target Groups Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 4

5 Why is dynamic brand management necessary Change of technology Organizational change (merger, acquisitions) Changing consumer needs Changing competitor positions Attracting new consumers New competitors Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 5

6 Agenda Strategy Changes and Flexibility: Dynamic Management 2 Challenges of Dynamic Management Level of Change Internal Implementation Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 6

7 Agenda Strategy Changes and Flexibility: Dynamic Management Challenges of Dynamic Management 2.1 Level of Change Internal Implementation Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 7

8 FRoSTA case: One of the largest producer of frozen food in Europe Frozen ready meals 2012 Employees: 1,504 Turnover: 380 million (approx. 1/5 FRoSTA brand) Frozen vegetables Frozen fruits Group result: 6.1 million Frozen herbs Source: FRoSTA Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 8

9 FRoSTA case: Stuck in the middle position resulted in decline of market share in frozen ready meal market Market share in % % New position of FRoSTA Quality and price leader Old position of FRoSTA Discount with private labels Year Source: FRoSTA Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 9

10 FRoSTA case: FRoSTA changed almost everything New promise, products, packaging, price & communication New brand promise: Purity Command (completely abandon the use of taste enhancers, colorings, aromas, stabilizers and emulsifiers) and 100% transparency concerning ingredients New product program - High quality products (best raw materials) - 50 products were completely modified - 60 products were eliminated New packaging New communication Jingle and slogan FRoSTA ist für alle da Peter von FRoSTA New price (>3 Euro) Source: FRoSTA Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 10

11 FRoSTA case: As a result FRoSTA experienced another decline in market share and had the worst year in history Market share in % % 16.7 Loss of market leadership FRoSTA brand turnover: -42% Group result for the year: Loss of 7.7 million (first loss since 1988) Stock price: -37% 10 No dividend payout 5 Job cuts Year Source: FRoSTA Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 11

12 FRoSTA case: In 2004 FRoSTA reduced the level of change and kept more of old identity (jingle, slogan, Peter, price) New brand promise: Purity Command (completely abandon the use of taste enhancers, colorings, aromas, stabilizers and emulsifiers) and 100% transparency concerning ingredients New product program - High quality products (best raw materials) - 50 products were completely modified - 60 products were eliminated New packaging New communication Jingle and slogan FRoSTA ist für alle da Peter von FRoSTA New price (>3 Euro) Source: FRoSTA Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 12

13 FRoSTA case: As a result FRoSTA managed to regain market share and market leadership Market share in % % Year Source: FRoSTA Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 13

14 identity should only be changed incrementally and gradually over time and the core should remain unchanged Incremental Radical Peripheral Attributes Core of Identity (Core Attributes) Identity Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 14

15 Agenda Strategy Changes and Flexibility: Dynamic Management Challenges of Dynamic Management Level of Change 2.2 Internal Implementation Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 15

16 Relevance of internal implementation of brand identity and brand promise Identity Promise Behaviour Expectations Experiences Image Satisfaction & Credibility Trust Loyalty & Customer Equity Internal branding aims at implementing the brand identity & the brand promise into employee behaviour in order to fulfil the brand expectations of external target groups. Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 16

17 Internal branding model is based on LiM-research since 2005 Several quantitative surveys in 24 companies (7,353 employees) Qualitative in-depth interviews with more than 160 employees (especially management) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 17

18 Internal branding model Tools Outcomes Relevance Citizenship Behaviour Source: Burmann/Zeplin (2005); Burmann/Zeplin/Riley (2009); Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 18

19 citizenship behaviour as final internal branding outcome citizenship behaviour (BCB) can be defined as all employee behaviours that are consistent with brand identity and brand promise, and in sum, strengthen the brand. Employee as brand ambassador Source: Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 19

20 Internal branding model Tools Outcomes Relevance Understanding Citizenship Behaviour Source: Burmann/Zeplin (2005); Burmann/Zeplin/Riley (2009); Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 20

21 understanding as cognitive antecedent of BCB understanding (BU) can be defined as employees comprehension of brand related information. Understanding of brand relevance Employees comprehension that the brand is important for their organization and their organization s success. Understanding of behaviour relevance Employees comprehension that their behaviour has an effect on the brand and its perception. knowledge Employees knowledge of what the brand stands for (brand identity and brand promise). confidence Employees knowledge of specific operational brand strengthening behaviours. Source: Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 21

22 Internal branding model Tools Outcomes Relevance Understanding Identification Citizenship Behaviour Commitment Source: Burmann/Zeplin (2005); Burmann/Zeplin/Riley (2009); Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 22

23 identification and brand commitment as (affective) antecedent of BCB identification (BI) can be defined as employees sense of belonging to the brand. I belong to commitment (BC) can be defined as the extent of psychological attachment that employees have towards the brand. Source: Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 23

24 Internal branding model Tools Outcomes Relevance Understanding Identification Citizenship Behaviour Commitment Employee skills, organizational support Source: Burmann/Zeplin (2005); Burmann/Zeplin/Riley (2009); Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 24

25 Internal branding model Tools Outcomes Relevance Internal brand communication Understanding Identification Citizenship Behaviour Commitment Employee skills, organizational support Source: Burmann/Zeplin (2005); Burmann/Zeplin/Riley (2009); Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 25

26 Use of all internal communication tools to affect internal branding outcomes Welcome and presents from management Employee interview Workshops Online- Newsletter Intranet Staff magazine Posters Internal videos Source: TUI Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 26

27 Internal branding model Tools Outcomes Relevance Internal brand communication Understanding External brand communication Identification Citizenship Behaviour Commitment Employee skills, organizational support Source: Burmann/Zeplin (2005); Burmann/Zeplin/Riley (2009); Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 27

28 Use of all external communication tools to affect internal branding outcomes Telekom Paul Potts TUI Joachim Löw Bahn Image video It was the first time that many employees thanked the marketing department for the TV-ad. External communication has a huge impact on identification, especially the TV-ads. They make the employees feel proud of TUI. Especially external communication which contains pride and emotions has a strong effect on employees. Source: Deutsche Telekom; TUI; Deutsche Bahn Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 28

29 Internal branding model Tools Outcomes Relevance Internal brand communication Understanding External brand communication -oriented leadership Identification Commitment Citizenship Behaviour Employee skills, organizational support Source: Burmann/Zeplin (2005); Burmann/Zeplin/Riley (2009); Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 29

30 Management on all levels has to live the brand Crossing the Atlantic Ocean with a speedboat in world record time We stand for value for money, quality, innovation, fun and a sense of competitive challenge Virgin boss Sir Richard Branson dresses as an air stewardess and serves drinks on Air Asia flight to honour Formula 1 bet with Tony Fernandes Record: Oldest kite surfer to cross the English Channel Source: Virgin Private provider of planned space travel Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Planned deep sea research with small submarine Nr. 30

31 Internal branding model Tools Outcomes Relevance Internal brand communication Understanding External brand communication -oriented leadership -oriented HR-Management Identification Commitment Citizenship Behaviour Employee skills, organizational support Source: Burmann/Zeplin (2005); Burmann/Zeplin/Riley (2009); Piehler (2011); Burmann/Piehler (2013); Piehler/King/Burmann/Xiong (forthcoming) Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 31

32 Consideration of brand-related aspects during employee introduction, development and in incentive systems Introduction Development Incentive system -oriented training and introduction events for new employees -oriented training, events, coaching and development Considering brandoriented behaviour in incentive systems Hand-out of DB mission statement to new employees. At Ritz Carlton, no one begins working until after completing new employee orientation about culture and philosophy. BMW Academy Consideration of mission statement values at Management by Objectives Source: Deutsche Bahn; Ritz Carlton; BMW Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 32

33 Why is there no institutionalized internal branding in practice despite its importance? 1. Short-term orientation of management 2. Antiquated understanding of brand management as advertising 3. Understanding of internal branding as internal advertising results in Focus on top-downinformation (e.g., staff magazine, intranet, brand book) Neglect of other internal branding tools 4. Internal branding means change which generates resistance to change Processes/structures Power Leadership Internal problems Employee behaviour Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany Nr. 33

34 Chair of innovative Management University of Bremen Lehrstuhl für innovatives Markenmanagement (LiM) Universität Bremen Prof. Dr. Christoph Burmann, Dr. Rico Piehler, Chair of innovative Management, University of Bremen

35 Contact Postal address: Chair of innovative Management (Lehrstuhl für innovatives Markenmanagement) University of Bremen (Universität Bremen) / FB 7 P.O. Box (Postfach) Bremen Germany Visitor address: Chair of innovative Management (Lehrstuhl für innovatives Markenmanagement) WiWi building, 2 nd floor Hochschulring Bremen Germany Phone: +49 (0) Fax: +49 (0) limsekr@uni-bremen.de Homepage: Facebook: Univ.-Prof. Dr. Christoph Burmann, Chair of innovative Management, University of Bremen, Germany