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Sap: Building a Leading Technology Brand

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Submitted By hellosk123
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1. Why didn’t SAP pay attention to branding and marketing?

SAP hadn’t paid enough attention to branding and marketing because of the following reasons:
• SAP had a strong reputation which was built primarily on its products and its heritage of market leadership and reliability
• SAP fostered an organizational culture that was highly product driven
• The company was started by five engineers from IBM, so the main strength of the organization was technology and not marketing
• Branding and marketing had never been their strongest suite and SAP didn’t understand marketing as an important part of sustaining an organization

2. What were the key branding related issues that SAP had to address in the year 2000?

• Sales people and other employees conversed in complex jargon that confused outsiders.
• Marketing function was decentralized which resulted in agencies producing independent local campaigns with inconsistent company and product positioning that created confusion among the masses about the actual business of SAP.
• SAP was late to venture into the Internet zone and recognize the e-commerce boom.
• The launch of mySap.com to mitigate the branding issue didn’t serve the purpose well. Instead it caused confusion and put SAP’s brand equity at risk.
• The launch of mySAP.com made SAP appear as a product website instead of a corporation.
• The logo and tagline were not consistent across geographies
• Advertising campaigns in different markets resulted in different positioning of the company.
• The numerous representation of the company on Internet with no consistent governance or design or content creation caused confusion.
• All the above factors resulted in a weak and unclear brand

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