5 Things to Think about / Tools What is your corporate and business level strategy? Use strategic canvas to discover current competitive positioning based on customer wants/needs Is there a certain population/need that is not satisfied? Examine internal capabilities and the ability to meet needs Each segment’s value and effort required
You may try to use mass marketing and ignore customer segment difference. This can normally be done with a single product/brand. You may try to market (1) to many segments with the same product or (2) to many with many products/brands. You may try to attempt niche marketing and go for a smaller segment and understand/saturate the market Micromarketing (or one-to-one marketing) allows tailoring of the sale package and product.
A brand vision should transcend particular products, markets, or even current leadership. It should be complimentary to the corporate vision. It connects every part of the organization together into the brand. Example: Sony – We Help Dreamers Dream. Sony is a company devoted to the celebration of life. We create things for every kind of imagination. Products that stimulate the senses and refresh the spirit. Ideas that always surprise and never disappoint. Innovations that are easy to love, and effortless to use, things that are not essential, yet hard to live without. IBM - At IBM, we strive to lead in the invention, development and manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide.
Brand essence is the essential characteristics of your brand that it cannot live without. Core identity is the parts of your brand that it has been successful with that is now seen as a very important part of your brand. Brand extensions can be seen as the channels/characteristics of your brand that assists the development of the brand in general
A brand promise is essential to a clear positioning . It humanizes the mission statement. Example: Coca-Cola: The Coca-Cola company exists to benefit and refresh everyone who is touched by our business. HP: We make technology accessible to everyone… The new HP stands for the power of innovation… A company known for our character as well as our great technology
They all can be combined, but one should take the lead. Normally customer experience is most used in brand strategzing Examples Brand by planning: Coca Cola, Nestle, Intel, GM, Gillette Brand by imageries: Calvin Klien, BMW, Abercrombie and Fitch, Ralph Lauren Brand by experience: Starbucks, Tiffany, Southwest Airlines, Yahoo, Disney, Costco Brand by self expression: LV, Prada, Swatch, VW Beetle, Apple,
Four possibilities of varying degrees Brand becomes a personality that is identified with a certain product/product range Brand becomes a personality that is independent of any product Brand is focused on what they do best and is identified with a certain product/product range Brand is focused on what they do best and is independent of any product
Example: Listerine:To folks with with bad breath, Listerine is the mouthwash that cleans your breath fast and easy Tagline: Fresh breath just a swish away Scope enters market to folks with bad breathe, scope is the mouthwash with great flavours that clean your breath fast and tasty Tagline: Taste great, and it works! Listerine responds: Listerine is the mouthwash that cleans your breath with special medicinal cleansers to make sure its really one Repositions taste as ineffective Tagline: taste that people hate, twice a day Scope responds: To folks with bad breath, Scope is the flavoured mouthwash that cleans your breath with effectivelys strong flavoured medicine Repositions flavour as effective Tagline: Why have medicine breath
Positioning map allows you to use a quick and easy two-variable chart to compare your brand versus other brands Strategic canvas allows the comparison of numerous variables and allows an easier view of gaps
Brand Strategy Andy Chou 2011
What is a brand ? <ul><li>An experience, a symbol, colour, personality, phrase… It’s essentially everything about a company and its products that the customer comes in contact to. </li></ul><ul><li>It helps (1) retain customers, (2) maximize life time value, (3) increase market share, (4) increase margins, and (5) compete better. </li></ul>
Three Requirements x2 <ul><li>A brand needs relevance ( personal – meaning and communication ), coherence ( consistent, clear, and understandable ), and participatory ( two way communication, customer builds brands, and being involved ). </li></ul><ul><li>A brand requires mutual-trust , a common identity, and a point of difference between brands. </li></ul>
Internal Customer Industry Profile Segmentation Brand Creation Marketing Mix
Drivers of Brand Vision <ul><li>What is the company’s vision and mission? </li></ul><ul><li>What is its business strategy? </li></ul><ul><li>What is its explicit long term business goals? </li></ul><ul><li>What is its explicit short term business goals? </li></ul><ul><li>What is your company’s core competencies? </li></ul>1
Understand your customers <ul><li>Who are they? </li></ul><ul><ul><li>Demographic, geographic, psychographic, behaviouristic </li></ul></ul><ul><li>What are their needs and wants ? </li></ul><ul><li>What is their market value? </li></ul><ul><ul><li>Usage rate, dollar value, elasticity…etc = life time value </li></ul></ul><ul><li>What is their buying process? </li></ul><ul><li>Are they currently satisfied (next section) </li></ul>2
Understand your environment <ul><li>Who are your competitors? </li></ul><ul><ul><li>What is their brand position? </li></ul></ul><ul><ul><ul><li>Is it dominant? </li></ul></ul></ul><ul><ul><li>What are their strengths and weaknesses? </li></ul></ul><ul><li>What is your ‘PEST’ analysis? </li></ul><ul><li>What is your ‘Porter 5’ analysis? </li></ul>3
Segment your market <ul><li>Segment based on your customer’s needs </li></ul><ul><li>What is the current and future economics of your segment? </li></ul><ul><li>Consider growth, behaviour, price and service requirements. </li></ul><ul><ul><li>Utilize scenario planning (what if?) </li></ul></ul>4
Build your brand vision <ul><li>Put together everything you know about the customer, the industry, and yourself </li></ul><ul><li>Where do you want your brand to be over the longer term to support your long term business strategy . </li></ul><ul><li>Where do you see there being a space for your brand </li></ul>5
Develop your brand identity <ul><li>Starts with who you want to be, then how you communicate it </li></ul>6 What is communicated to selected target segments What is currently perceived by customers Core identity Extensions “ Innovative” “ Entertainment” “ Steve Jobs” Brand Essence
Build your brand promise <ul><li>A brand is a promise . The basis of any brand is its core promise, which other components of the brand are built around . </li></ul><ul><li>Industries and markets evolve and change. Brands </li></ul><ul><li>and its promises live on. </li></ul><ul><li>What does your brand mean to you and the customer </li></ul>7
Build your brand personality 8 Brand Key words? Innovative Reliable Stylish Masculine / Feminine Rebellious Friendly Products also have their own personality that is a subset of the brand personality Key Question: Who is your brand? What is his/her personality if it was a human?
Build your brand strategy 9 <ul><li>Translate brand promise into a customer experience strategy for brand delivery </li></ul><ul><li>The strategy describes the service characteristics </li></ul><ul><li>Create the service process (tasks and activities) </li></ul><ul><li>Create the means (product, people, technologies) </li></ul><ul><li>Find the evidence of your brand </li></ul>
Approaches 9 Approach is by formal planning process. Application of portfolio and PLC together with competitive positioning Approach is by functional manner Advertising and creative design takes lead role Approach is by building everything around the consumer Quality, positive image, and functional benefits is assumed. This focuses on dazzling the senses, touching hearts, and stimulating the mind. Approach is by through customer involvement. For customers, the brand builds their own personal brand. It represents themselves .
Brand overview 10 <ul><li>Key tasks: </li></ul><ul><li>Understand a day in the life of a customer. </li></ul><ul><li>With that, identify opportunities to create customer engagement. </li></ul><ul><li>Map out the customer engagement opportunities against the brand vision </li></ul><ul><li>Analyze the economic (value) implications of these ideas. </li></ul><ul><li>Create the key metrics to measuring success. </li></ul><ul><li>Implement </li></ul>
Position your brand 11 What four quadrants is your brand in?
Create your brand statement 12 “ TO TARGET, BRAND is the PRODUCT that DOES WHAT (INCENTIVE/DIFFERENTIATION) because / as a result of (PROOF/EVIDENCE) ” Internal Brand Statement L’Oreal: To women, L’Oreal is _____________ because of _________. External Brand Statement L’Oreal Tag Line: You’re worth it.
Position analysis tools 13 Positioning Map Strategic Canvas Focus on creating positive differentiation points
Positioning Overview 14 <ul><li>Try to find gaps </li></ul><ul><li>Have an integrated message </li></ul><ul><li>Make sure the 4P / 4C are put together in a suite </li></ul>