Forget Brand PreferenceWin the Brand Relevance Battle               DAVID A. AAKER               Vice Chairman, Prophet   ...
Brand      Market            Relevance   DynamicsBrand Relevance                    2
Asahi-Kirin Beer WarBrand Relevance          3
The Computer Industry            Minicomputers            Network Workstations            Graphic Workstations            ...
Customer Decision Process                        Brand Relevance              Brand Preference                   Select Pr...
Routes to Winning                  Brand Preference         Brand Relevance                   Competitor               Com...
Innovation Continuum      Innovation       Incremental         Substantial     Transformational      Offering      Noticea...
Test—New Category/Subcategory?                     Can we deliver?                  Is there a “must have”?               ...
The Pay OffBrand Relevance   9
Transformational InnovationBrand Relevance                     10
The Pay Off      108 Business launches: Those creating new categories or subcategories:         • 14% of sample         • ...
Defining Categories/Subcategories   Applications   Shared Interest    Values that connect   Components to systems     Augm...
Create Barriers   Execute over the top   Continuously innovate                            Nano Shuffle Touch   iPad   Be t...
The Power of Branding Innovations                  OuterStyle      OuterStyle                               Alpine Class F...
Branded FeatureBrand Relevance     15
Branded Technology                          Caterpillar ACERT                  Emission Reducing Diesel Engine TechnologyB...
Branded ServiceBrand Relevance      17
Branded Customer Interaction                  Dell Community                                   StudioDellBrand Relevance  ...
“You do not merely want to be considered                          just the best of the best,                   You want to...
Relevance Threat                  Lose Brand RelevanceNo Longer Make What     Lose Energy      Have CompellingCustomers Ar...
Stick to Your KnittingBrand Relevance            21
ParityBrand Relevance   22
Reposition                  Hunting,                  fishing,   Outdoors                  campingBrand Relevance         ...
Reposition – “Products” to Delivering “Solutions”                                      The Solutions Journey              ...
LeapfroggingBrand Relevance   25
Relevance Threat                  Lose Brand Relevance  No Longer Make What    Lose Energy     Have Compelling  Customers ...
The Decline of Brands         Brand Asset Valuator         •40,000 brands         •44 countries         •70 metrics       ...
Energy Interesting/exciting Involving/engaging Innovative/dynamic Passionate/enthusiasticBrand Relevance            28
Extend the Brand                          •   Body Wash with Nutrium                          •   Facial Core Cleanser    ...
Avon--Branded Program                  Raised $640 million since 1992                   Educated 100 million womenBrand Re...
Branded Energizers                      NASCARBrand Relevance                31
Relevance Threat                  Lose Brand RelevanceNo Longer Make What     Lose Energy      Have CompellingCustomers Ar...
Remove a NegativeBrand Relevance      33
Brand      Market            Relevance   DynamicsBrand Relevance                    34
Forget Brand PreferenceWin the Brand Relevance Battle               DAVID A. AAKER               Vice Chairman, Prophet   ...
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BMA Chicago - Forget Brand Preference, Win the Brand Relevance War

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  • DHL Web Shipping ======= Online Shipping Solutions especially for companies Ability to book, track, and manage express shippings Includes label printing mechanism CORNING Gorilla Glass ======= Glass specifically engineered for the use in smartphones It is thin, light and extremely damage-resistant Developed in the 1960, but it came to success with the use in the first iPhone as Steve Jobs convinced the Corning CEO to start producing it It is currently used in over 600 million devices (smartphones, tablets, etc) Product videos: http://www.corninggorillaglass.com/#videos
  • Sony Erricson struggled after Apple released it ’s iPhone in the third quarter of 2007 Overall the handset shipments fell from 30.8M in 2007 to 8.1M in Q1 2011 They failed to compete in the areas of innovation and usability against Apples iOS and Googles Android and weren ’t able to position themselves with a well equipped smartphone. Thus, they were not in the considerationset in a rapidly growing sector In 2011 Sony aquired Ericssons stake and completed the acquisition in Febr. 2012
  • Sony Erricson struggled after Apple released it ’s iPhone in the third quarter of 2007 Overall the handset shipments fell from 30.8M in 2007 to 8.1M in Q1 2011 They failed to compete in the areas of innovation and usability against Apples iOS and Googles Android and weren ’t able to position themselves with a well equipped smartphone. Thus, they were not in the considerationset in a rapidly growing sector In 2011 Sony aquired Ericssons stake and completed the acquisition in Febr. 2012
  • The Dove story from 200 million to over 2 billion by extending the brand to other products and countries.
  • Sony Erricson struggled after Apple released it ’s iPhone in the third quarter of 2007 Overall the handset shipments fell from 30.8M in 2007 to 8.1M in Q1 2011 They failed to compete in the areas of innovation and usability against Apples iOS and Googles Android and weren ’t able to position themselves with a well equipped smartphone. Thus, they were not in the considerationset in a rapidly growing sector In 2011 Sony aquired Ericssons stake and completed the acquisition in Febr. 2012
  • Transcript of "BMA Chicago - Forget Brand Preference, Win the Brand Relevance War"

    1. 1. Forget Brand PreferenceWin the Brand Relevance Battle DAVID A. AAKER Vice Chairman, Prophet Blog: davidaaker.com BMA Chicago October, 2012 Proprietary and confidential Do not distribute
    2. 2. Brand Market Relevance DynamicsBrand Relevance 2
    3. 3. Asahi-Kirin Beer WarBrand Relevance 3
    4. 4. The Computer Industry Minicomputers Network Workstations Graphic Workstations Build to Order PCsBrand Relevance 4
    5. 5. Customer Decision Process Brand Relevance Brand Preference Select Product Determine Category or Brands Select Brand to Buy Subcategory To Consider SUV Audi BMW BMW Mercedes-BenzBrand Relevance 5
    6. 6. Routes to Winning Brand Preference Brand Relevance Competitor Competitor Brand Brand Winning VS. Means Not Not Preferred ConsideredBrand Relevance 6
    7. 7. Innovation Continuum Innovation Incremental Substantial Transformational Offering Noticeable Impact New Category Game Changer Enhancement On Brand Preference Or Subcategory Online Shipping CORNING Gorilla GlassBrand Relevance 7
    8. 8. Test—New Category/Subcategory? Can we deliver? Is there a “must have”? Business worthwhile? Legs?Brand Relevance 8
    9. 9. The Pay OffBrand Relevance 9
    10. 10. Transformational InnovationBrand Relevance 10
    11. 11. The Pay Off 108 Business launches: Those creating new categories or subcategories: • 14% of sample • 38% of revenue • 61% of profits McKinsey Study: 1,000 firms, 40 years • New entrants • Return premium over average for their industry • First year 13% • 3% in fifth year • 1 % in tenth year New Product Success Correlated with DifferentiationBrand Relevance 11
    12. 12. Defining Categories/Subcategories Applications Shared Interest Values that connect Components to systems Augmented relationshipBrand Relevance 12
    13. 13. Create Barriers Execute over the top Continuously innovate Nano Shuffle Touch iPad Be the Exemplar Branded differentiatorBrand Relevance 13
    14. 14. The Power of Branding Innovations OuterStyle OuterStyle Alpine Class FillBrand Relevance 14
    15. 15. Branded FeatureBrand Relevance 15
    16. 16. Branded Technology Caterpillar ACERT Emission Reducing Diesel Engine TechnologyBrand Relevance 16
    17. 17. Branded ServiceBrand Relevance 17
    18. 18. Branded Customer Interaction Dell Community StudioDellBrand Relevance 18
    19. 19. “You do not merely want to be considered just the best of the best, You want to be considered the only one who do what you do.” Jerry Garcia, The Grateful DeadBrand Relevance 19
    20. 20. Relevance Threat Lose Brand RelevanceNo Longer Make What Lose Energy Have CompellingCustomers Are Buying & Visibility NegativeBrand Relevance 20
    21. 21. Stick to Your KnittingBrand Relevance 21
    22. 22. ParityBrand Relevance 22
    23. 23. Reposition Hunting, fishing, Outdoors campingBrand Relevance 23
    24. 24. Reposition – “Products” to Delivering “Solutions” The Solutions Journey Starting Point Commodity Commodity Value Added Services System Integrated + Free Products Services/ Products Services Products & Services Products Products Transition Transition Solutions SolutionsDeck Title Proprietary and confidential. Do not distribute. 24
    25. 25. LeapfroggingBrand Relevance 25
    26. 26. Relevance Threat Lose Brand Relevance No Longer Make What Lose Energy Have Compelling Customers Are Buying & Visibility NegativeBrand Relevance 26
    27. 27. The Decline of Brands Brand Asset Valuator •40,000 brands •44 countries •70 metrics •15 years Trustworthiness down 40% in 13 years Quality perception down 24% in 14 years Awareness down 20% in 13 yearsBrand Relevance 27
    28. 28. Energy Interesting/exciting Involving/engaging Innovative/dynamic Passionate/enthusiasticBrand Relevance 28
    29. 29. Extend the Brand • Body Wash with Nutrium • Facial Core Cleanser • Antiperspirant & Deodorant • Shampoo with Weightless Moisturizer • Nutrium Beauty Bar • Men & Care $200M 1990Brand Relevance 29
    30. 30. Avon--Branded Program Raised $640 million since 1992 Educated 100 million womenBrand Relevance 30
    31. 31. Branded Energizers NASCARBrand Relevance 31
    32. 32. Relevance Threat Lose Brand RelevanceNo Longer Make What Lose Energy Have CompellingCustomers Are Buying & Visibility NegativeBrand Relevance 32
    33. 33. Remove a NegativeBrand Relevance 33
    34. 34. Brand Market Relevance DynamicsBrand Relevance 34
    35. 35. Forget Brand PreferenceWin the Brand Relevance Battle DAVID A. AAKER Vice Chairman, Prophet Blog: davidaaker.com BMA Chicago October, 2012 Proprietary and confidential Do not distribute

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