Strategic Brand Management

Midterm questions

1. Case study: In 2014, USA-based bourbon maker, “Henry Whatson” company, was accused
of misleading its consumers through its advertisements that claimed that its popular bourbon
was handmade. Earlier in 2002, “Henry Whatson” also drew flak for an ad that analysts felt
was offensive due to its objectification of women. The ad featured a tall bottle of “Henry
Whatson” Bourbon whisky against a black background. In large, silver lettering, the ad read,
“Your bourbon has a GREAT BODY and a fine character. I WISH the same could be said
for my GIRLFRIEND.” This controversial ad received negative reviews from analysts. They
felt that the ad was highly demeaning to women as it compared them to objects.

*The case is structured to achieve the following objectives:

a) Analyze the issues, challenges and ethical considerations in advertising in general and to
alcohol advertising.
I find it as a clear symbol of sexism. This kind of behavior by the big companies is a clear
example of inequality and it is normal that most women found it offensive. In addition to the
fact, that advertisement of alcohol products is being banned, this kind of commercial has no
place in current society. I believe this is one of the reasons why alcohol ads are being extensively
limited and banned and are under tough regulation. The Henry Whatson whiskey is trying to
sexualize and objectify the women, and they offend not only the females, but also males by their
motto “I wish the same could be said for my girlfriend” This advertisement, I believe, appeals to
the arrogant men, who respect a person's appearance rather than their personality. It may appeal
to men who are unhappy in their current relationship and should drink this soft drink as an
escape from an out-of-shape girlfriend with no temperament.

b) Discuss all the issues you believe affected the controversy of this advertising.
Pathos is the primary appeal in this advertisement. Because all relationships have ups and downs,
this ad appears to be based on the fact that many people use alcohol as a survival strategy, such
as people who are in a bad relationship or going through a rough patch in their relationship.
Pathos says that Henry Whatson comprehends, and if you drink their whiskey, you will feel
better because if you can't have a perfect girlfriend, at least your drink is flawless. This ad can
trick the buyer into feeling better temporarily, but it is extremely offensive and degrading for
women. Women are bombarded with messages that their bodies must be perfect, and it can be
very irritating for women to strive for the unfeasible body, even if the women in these
advertisements have been bleached or digitally enhanced to appear “ideal.” The word shares
openly a common image of 'perfection' in a world of diverse cultures and social beliefs. For
everyone, in any culture, appearance is important, and nobody can evade the mainstream press.
There are advertisements, music, movies and magazines all over the world. It is in unnecessary
ads like this, which can harm the health and well-being of a woman.
c) Asses and discuss whether the company was right in making the claim or whether it was a
case of misleading advertising.
"Have I got everything I want in life?" The question is this ad placed in men's minds. Whiskey is
easy to purchase; however, it isn't that easy to land the woman of your dreams. They suggest the
perfect woman and whiskey is logical. This ad puts the question in women's minds: Am I
sufficiently good? Women will remain anorexic or bulimic, undergo unnecessary operations and
suffer psychological torment as a result of this constant use of pathos in the media to degrade
women of every form and size and offend them. Ad makers can surely find a healthier way to
promote and still sell their products without women being degraded.
d) Explore ways in which brands can effectively advertise their products.
There are hundreds of ways on how to advertise your product in the era of high-technology. The
question is not about how, but which way. And of course it depends on your audience. If Henry
Whatson wanted to focus their advertising campaign on males usually referred as rednecks –
they did a good job. Unless you are willing to invest huge sums of money in trial and error and
have a large capital, you will want to know how to market your brand in the strongest ways even
with a limited budget. And there are lots of ways to do so – through social media, SEO,
influencer marketing and so on, of course, depending on your target.

2. Assignment: Describe the situation, where a startup company goes from creating a product
to transforming it into the brand and calculate its EBITDA, considering the below details.
Revenue for 2019: $28M
COGS: $11M
Operational expenses: $2M
Tax %: 8%
Amortization: 1%
Depreciation: 5%

The creation of a brand is a complex process which requires heavy investment and advertising.
The company should define its core values, mission statement, targeted audience and so on.

Gross Profit = Revenues – COGS = 28 – 11 = $17M

Depreciation = $11M x 5% = $0.55M
Amortization = $11M x 1% = $0.11M
Tax = $28M x 8% = $2.24M
EBITDA = Operating Profit + Depreciation + Amortization
EBITDA = 17 – 0.55 - 0.11 – 2.24 = $14.1M

3. Taking into consideration all types of risks in buying and consuming, please describe the
type of risk, which was experienced in the following case. Explain how this risk can be
avoided and what needs to be done?
The product results in embarrassment from others.

As already defined, the perceived social risk is the possibility for other members of society to
refuse the purchase decision of consumers. In other words, a potential perceived loss of image or
status by buying a certain brand or product is called a social risk. The consumer'S social position
can be affected by family, acquaintances or peers' perceptions of an acquisition. Its societal
status or membership may be improved or decreased, according to how families, acquaintances
or peers view the purchase. In the course of the current research, the perception of social risk can
depend on the psychological, socio-demographic and cultural characteristics of the consumers.

4. Case study: Galbani, Italy’s number one mozzarella, was losing out to own label cheese -
partly because British people thought that there wasn’t much difference between one
mozzarella and another and partly because the brand lacked memorability. Research revealed
that Galbani existed as a badged product, rather than a brand.

The challenge for Galbani’s agencies – Initials (creative) and Zenith (media) - was to
increase brand awareness and get mozzarella-loving shoppers to see Galbani as an essential
part of any high-quality Italian dish. Specifically, the objectives were to:
  Generate awareness of Galbani amongst home cooks
 Drive memorability of the Galbani name
 Increase consideration of Galbani versus its competitors

Please analyze and discuss how you would reach the above mentioned three objectives.

I believe the most productive route would be a TV sponsorship. It is capable of efficiently

generating mass awareness, providing a high frequency and emotionally powerful to change
people's views. I would say, that the optimum time for it would be around a famous cook show,
as there should be a natural synergy between the product and brand. The auditory of the show
should coincide with the one the brand has. By constantly promoting the brand, it will have the
effect on the audience’s conscious.

Another effective way of marketing would be BTL promotions in the supermarkets, where the
potential customers will be given chance to test and try out their products. It should generate new
customer base and therefore will increase brand awareness.

At last but not least, the company might sponsor some events where housewives actively
participate as they are their man core audience.

In addition to all of that mentioned above, in order to all these efforts be effective, a new motto
should be generated. It could be a simple statement, or could be in form of a short melody – but
nothing works more efficient than this given the circumstances.

5. Case study: Audi’s UK growth had come from its lower end, less expensive cars. It aspired
to sell more cars to higher value customers. Using a strategic idea of the ‘progressive
premium’, Audi launched a program entitled 'Beautiful cars with amazing brains' to
communicate the desirability and technical innovation of its cars to higher spending users
across various channels.

Make your analysis on how would you build the advertising strategy in order to make sure
that Audi became top for desirability among the prestige audience. To guarantee sales
volumes growth in UK market.

I would not personally change anything. Nowadays, the luxury car market is mostly driven by
innovation. There is an electrification process going on and even luxurious Italian manufacturers
are trying to keep up with the competition. Tesla gained the market leadership in US by putting
behind such reputable German brands as Mercedes-Benz and BMW. Therefore, I believe that the
only way to differentiate your product and sell it for more premium is to offer some
technological advancements. Audi was able to concentrate its marketing campaign on that and
successfully implemented its ‘progressive premium’ strategy.