What is Brand? Why Brand? What difference does Brand make?1
Introducing Brand…• A strong corporate brand is the evocative articulation of organisation‟s purpose• Beyond mission statements and objectives, the brand encapsulates a core promise and answers „why choose us?” and “how we are different?”.• Brands creates simplicity out of complexity.• Brands take the rational and make it emotional through the use of language and symbols as a shortcut to decision making and the guarantee of a promise made.• Strong brands energise people - for employees they create meaning, stir XXX emotions and engage people.• Externally the brand creates a connection and commitment with customers.
What is the role of Corporate Brands? They help businesses PERFORMThey INSPIRE employeesto live by the brand with enthusiasm and conviction They PROTECT against predators Internal Alignment Value and creation Engagement UNIFY They help organisations Make sense of the CHANGE via unchanging business as a values which help the whole organisation flex
Characteristics of successful brands • One simple, unifying idea delivered clearly and consistently • A clearly articulated, vision shared across the organisation • A point of differentiation from your competitors • Understanding your stakeholder‟s needs, delivering and exceeding them • Building on a solid foundation of strong business fundamentals • Staff and executives who „live and breathe their brand‟ and walk the talkHowever, this does not happen by chance. Businesses who do this wellhave a sound strategy & positioning which makes branding look easy.
Why is this important? Organisations & senior executives typically understand the tip of the iceberg: • Name • Logo The real power is aligning to the above whilst also creating real meaning for your stakeholders, What is your positioning? • Is it Credible, Sustainable, Relevant and Unique ? What do you stand for? How are you truly different? Are your internal stakeholders aligned with what you are saying? Do you know what your external stakeholders seek, expect and want? Have you got the clarity beneath the surface?
Successful businesses align their proposition • Customer facing Proposition – Why do business with us? • Employee facing Proposition – Why join or stay with us? • Investor facing Proposition – Why invest with us? • Community “Values” Proposition – Why believe in us? The Corporate Brand links these propositions
Successful branding projectsGreat brands are a combination of :» Insight and understanding of the business and marketplace» A clear group vision/strategic positioning» Clear brand values» Creative inspiration that reflects the Role, Purpose and Values of the brand» A consistent delivery throughout the marketing mix and to all brand stakeholdersCritical success factors include» Senior management mandate and ongoing support» A core team resourced and empowered to bring the entire project together» Experienced branding partner with proven process and capabilities» A deadline and the commitment to stick to it
In the context of Financial Services…• Financial Services marketing communications is characterised by numbing sameness, commoditised product feature wars, and laundry lists of product benefits.• It‟s a sea of noise, parity, clutter and dullness...• Branding helps cut through the morass of the market, get noticed, and connect with the customer on many levels and in ways that matter.• A strong brand becomes the client‟s “shorthand” for making choices in a complex, risky, and confusing marketplace.
Is this rational???• What we actually think or why we buy a particular brand of product is based on stored memories, images and feelings – which is what a brand is all about – Will we really belong to some rebel tribe by buying a motorcycle? – Does every woman identify with Audrey Hepburn because her gift came in a light blue box?• It is one of the key reasons why we operate from feelings over facts, respond to emotion over reason, and choose great brands over their service or commodity substitutes.
Enough already!“The „surplus society‟ has a surplus of similarcompanies, employing similar people, with similareducational backgrounds, coming up with similarideas, producing similar things, with similar prices andsimilar quality.”Kjell Nordstrom and Jonas Ridderstrale, Funky Business
What is the value of a strong, differentiated brand?Strong brand Weak brand• Clear understanding among target • Poor brand recognition and confused market of your positioning & offering value proposition• Increased ability to attract clients • Limited ability to differentiate• Ability to retain & attract higher quality • Reduced ability to attract quality staff employees • Market unclear of offering• Increased brand equity & awareness • Confusion of relationship between• Consistent representation of brand parent and sub brands among staff and marketing messages and market• Positive impact on share price* • Limited brand equity built – See notes • Limited ability to build brand loyalty• Potential to demand premium price* and preference among stakeholders – Customers will pay 19% more for a leading brand name – See notes
Building brand equity - Moving to desired.Where are we today? High High brand Equity & High Brand Equity & Low Market Share Strong market Share Equity under leveraged Strong brands Desired Brand Equity Weak Brand Equity & Weak Brand Equity & Strong Market Share Low Market Share Vulnerable – build Brand Current? Growth Opportunity Equity Low Market ShareSource: A.C.Nielsen
Summarising the Corporate benefits Improved corporate reputation & better known brand More robust share price Increased ability to withstand adverse news, results or economic downturn Clear Differentiation Increased ability to attract and retain quality staff Focused workforce - staff all „singing from the same song book‟ Strong, unified culture Consistent marketing, communication and brand representation Symbiotic relationship between corporate brand and business units
Benefits of an aligned BrandInternal ExternalHuman Resources Customers and Distribution Channels – Existing» Improved access to and retention of and New employees » Provides customers with a clearer» Improved satisfaction of new and long understanding of the value proposition, standing employees delivering greater ease and more» Improved engagement and productivity of meaningful, dimensional and sustainable employees relationships, CommunityCorporate and Business functions » Provides the community with a greater and clearer understanding of the reason they» Deeper alignment, cohesion and exist, how they are positioned, what they understanding across the entire believe in and what role they play in the organisation: department, division, city, broader community country region or globally and how it plays out on a daily basis Potential Employees» Greater degree of focus and flexibility, » Greater clarity and simplicity about who we reduces confusion and ambiguity are, what we stand for and what a career with us looks like» Assists in ensuring that Fidelity becomes an outward-looking, flexible, integrated and » A distinctive and clear EVP, internally and more responsive organization externally aligned that attracts the best graduates» Strategy and priorities are communicated and clearly understood by all staff and » A clear market leader to seek out amongst a management myriad of competitors
More Benefits of Building Brands The emotional connections between brands and buyers leads to greater access, lower price sensitivity, better openness, and more forgiveness for mistakes for well - branded companies. In fact strong brands are reflected in these preferential actions: • Increased willingness to try a product or service. • Lower time required to close a sale • Greater chance that the product or sale is purchased • Willingness to give a larger sum of purchase requirement • Comfortableness with paying a price premium • Lowered sensitivity to price increases • Lowered inducement to experiment with competitive offerings. In Summary:A strong brand brings tangible commercial benefits. It ensures you‟re a „must have‟ on any shortlist. It justifies a price premium. It helps drive customer loyalty. 17
Summarising the outcomes• Your brand strategy builds current brand positioning and extends the brand to develop a unique & sustainable market position across all sectors of the business & across all stakeholders• It creates a platform to drive „connectivity‟ between business divisions – adding value at a corporate level and across business units• It delivers a stronger understanding of and commitment to the brand among staff• It can include a brand identity system and visual language (look & feel, tone of voice, etc) calibrated to present consistency, while aligning to the needs & wants of the business unit brands within the business• Implementation then plans to bring the program to life for internal and external audiences• Supported by tools to track brand performance and measure improvements in brand health