Workshop for Brand Leaders to make them
better at running the brand financials
Brand Coaching
We promise to make your Brand better by digging deep on the issues,
providing advice that challenges you, a...
We make your team of Brand Leaders Better
We can customize programs to the needs of your team with a
strong menu of intera...
What’s the role of Brand
Management?
Market
Share
Contribution
Margin
Execution
Sales
Brand
Plan
Loyal Customers
Reputatio...
Act Like an Owner
Brand Manager has to have a mindset that
reflects the CEO, accountable for growth,
costs, profit and sha...
We make Brands Better.
We make Brand Leaders better.
Brand Manager has to have a mindset that reflects the CEO.
So if the ...
We make Brands Better.
We make Brand Leaders better.
The brand’s promise and delivery of that promise are a
source of powe...
We make Brands Better.
We make Brand Leaders better.
Do you think it’s a coincidence the Most Beloved Brand on the
planet ...
Running the P&L
Most marketers absolutely hate the P&L. It’s a chore to manage
2008 2009 2010
Net Sales 21,978 24,616 27,569
Cost of Goods...
Quick analysis reveals potential problems: Dig Deeper
2008 2009 2010 Growth %
Net Sales 21,978 24,616 27,569 12%
Cost of G...
We make Brands Better.
We make Brand Leaders better.
There’s really four key areas on the P&L that you need to
dig in to u...
We make Brands Better.
We make Brand Leaders better.
Using price as a weapon to drive Brand Value.
Price
When to Use
• Inc...
We make Brands Better.
We make Brand Leaders better.
Examples of Formulas in Detail – The Price Increase
10% price increas...
We make Brands Better.
We make Brand Leaders better.
Managing cost as a weapon to enhance the Brand’s Value.
Cost
When to ...
We make Brands Better.
We make Brand Leaders better.
Examples of Formulas in Detail – Gross Margin
Sales $ 500
Cost of Goo...
We make Brands Better.
We make Brand Leaders better.
Externally, the share and volume game are traditional tools for
brand...
We make Brands Better.
We make Brand Leaders better.
Formulas in Detail – Compound Annual Growth Rate
Year 1 Year 2 Year 3...
We make Brands Better.
We make Brand Leaders better.
86%
82%
63%
16%
2%
98%
96%
85%
43%
4%
LIKE IT BRAND BELOVED BRAND
25%...
We make Brands Better.
We make Brand Leaders better.
Leaky Bucket: Matches Brand Experience up to Buying System
Voice of C...
We make Brands Better.
We make Brand Leaders better.
Game Changers are about finding new users or even new uses
for the co...
We make Brands Better.
We make Brand Leaders better.
Examples of Formulas in Detail – Return on Investment
Year 1
New Prod...
Common Finance Terms For Brand People To Know
• CAGR = Compound Annual Growth Rate
• Gross Revenue vs Net Revenue
• Gross ...
We make Brands Better.
We make Brand Leaders better.
As you re-focus a portfolio of brands, look externally to the
market ...
We make Brands Better.
We make Brand Leaders better.
Then look Internally with an ROI based on sales growth rates
and cont...
The More Loved a Brand
the more Valuable the Brand.
Driving wealth through connecting.
© Beloved Brands Inc.
We believe the more loved a brand is by consumers,
the more powerful and profitable that brand can be.
LOVE IT
INDIFFERENT...
LOVE IT
INDIFFERENT
BELOVED
BRAND
LIKE IT
No Opinion
Not Aware.
Confused. Not Interested.
Stick to Current Brand.
Satisfie...
We make Brands Better.
We make Brand Leaders better.
At the Beloved stage, demand becomes desire, needs
become cravings, t...
Stage
Consumers
View
Why is your
Brand here
Indicators in
the Market
How to get the
next stage
Indifferent No Opinion. Don...
Consumers Connect with Brands based on a Big Idea
and the 5 connectors must align to that Big Idea
How well does
the brand...
We make Brands Better.
We make Brand Leaders better.32Page
The BIG IDEA should drive the INTERNAL and EXTERNAL
story as we...
We make it so easy
to use electronics,
you will feel smarter
and at the leading
edge of technology,
no matter who
you are....
Brand
Power
Beloved Brands turn Love into a Source of Power
SUBSTITUTES
can’t duplicate
emotional
connection of
beloved br...
Brand
Power
Going beyond Porter to see 4 other sources of power
SUBSTITUTES
can’t duplicate
emotional
connection of
belove...
We make Brands Better.
We make Brand Leaders better.
Beloved Brands turn Power into Profit
Driving increased demand will
d...
We make Brands Better.
We make Brand Leaders better.
Beloved Brands turn Power into Profit
Premium and Inelastic: Loyal
co...
We make Brands Better.
We make Brand Leaders better.
Beloved Brands drive strong sales growth, which helps the P&L
work ha...
We make Brands Better.
We make Brand Leaders better.
Apple has been able to turn Love into Power and then into
Profits and...
Love Connection Power Growth Profit
“If you don’t love the work, how do you
expect the consumer to fall in love with
your brand?”
Graham Robertson
Beloved Bra...
What is your
current
competitive
position in the
market?
Leader
Challenger
Flanker
Guerilla
Product
Concept
Idea
Service/E...
Who are we at
Beloved Brands?
How can we help
your Brand?
We make Brands better.
We make Brand Leaders better.™
Brand Coaching
We promise to make your Brand better by digging deep on the issues,
providing advice that challenges you, a...
Beloved Brands can help your
brand in five ways:
Create a winning Brand Positioning
Write Brand Plans everyone can follow
...
Grays Cookie is
the…
To…
That …
That’s Because …
(category frame of reference)
Tasty low fat cookie
(Target Market)
Health...
Write Brand Plans everyone can follow
We coach Brand Leaders to build highly focused
Strategic Brand Plans that everyone i...
Find Advertising that drives Brand Growth
We coach Brand Leaders and Agencies at every stage so they
can to create Better ...
Drive Creativity and Innovation
We coach Brand Leaders and Agencies at every stage of
Marketing to get Creativity and Inno...
Make your team of Brand Leaders Better
We can customize training programs to the needs of your team with a
strong menu of ...
The great Brands we have coached
We bring our Brand Experience to your Table
“Beloved Brands assisted us in the
transforma...
Graham is one of the voices of the modern Brand Leader. He started
Beloved Brands, knowing he could make Brands better and...
We believe the more loved a brand is by consumers,
the more powerful and profitable that brand can be.
LOVE IT
INDIFFERENT...
Graham Robertson • Beloved Brands • 416 885 3911 • graham@beloved-brands.com
Ask us how we can
help make your
Brands and y...
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Drive Profits Through Your Brand

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The more loved a brand, the more powerful the brand and in turn, the more profitable the brand. This will help the brand manager be better at driving profit for their brand. And I hope inspire you.

Published in: Economy & Finance, Business

Drive Profits Through Your Brand

  1. 1. Workshop for Brand Leaders to make them better at running the brand financials
  2. 2. Brand Coaching We promise to make your Brand better by digging deep on the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. Brand Leader Training We promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging your team to push for greatness so everyone can unleash their full potential. We make Brands better. We make Brand Leaders better.™
  3. 3. We make your team of Brand Leaders Better We can customize programs to the needs of your team with a strong menu of interactive Brand Leadership Workshops 1. Strategic Thinking 2. Brand Plans 3. Positioning Statements 4. Creative Briefs 5. Brand Analysis 6. Better Advertising 7. Media Plans 8. How to Run Your Brand 9. Managing your Marketing Career 10. Motivational Lunch and Learns 1 2 3 4 5 6 7 8 9 10 The Brand Leadership Center We coach Brand Leaders on the hard skills related to brand management including P&L, analytics and forecasting
  4. 4. What’s the role of Brand Management? Market Share Contribution Margin Execution Sales Brand Plan Loyal Customers Reputation Gross Margin % Support Sales Image Logos Look & Feel New Product Launches Awareness Brand Equity Promotions Repeat Business Advertising Programs Trial Strategy Design Pricing Product
  5. 5. Act Like an Owner Brand Manager has to have a mindset that reflects the CEO, accountable for growth, costs, profit and shareholder wealth.
  6. 6. We make Brands Better. We make Brand Leaders better. Brand Manager has to have a mindset that reflects the CEO. So if the CEO is accountable for growth, costs, profit and shareholder wealth, then why aren’t the people running your brand equally accountable? CEO #1 • New Logo Design that everyone thought was cool. • Award Winning TV Ad that made it on youtube. • Tom Brady Endorsement. He came to the sales meeting. • Brand Mention On the TODAY show and David Letterman. CEO #2 • 5 year CAGR was double the category growth. • Gain 22 points of Market Share. Competition divested. • Reduced cost of goods by 10% and overhead costs by 15% • Increased profits by 25%, company valuation up by 43%. Two CEO Performance Reviews: Who Got Paid More? 6Page
  7. 7. We make Brands Better. We make Brand Leaders better. The brand’s promise and delivery of that promise are a source of power for connecting with consumers. • The brand promise sets up how the external community views your brand whether that’s consumers, customers or key influencers. • The consistency in delivering the promise connects consumers with your brand, both emotionally and rationally, letting it become a part of their lives. • But equally so, brand becomes an internal beacon to help guide behaviour, decisions, action, structure and the formation of a culture. • There’s a connection created between the consumer and the brand that generate a power that can help drive your growth and profitability Most marketers will tell you that branding is just about positioning. We think positioning is a means to driving growth and making money. That makes you a Powerful and Profitable Brand That makes you a Unique Brand 7Page
  8. 8. We make Brands Better. We make Brand Leaders better. Do you think it’s a coincidence the Most Beloved Brand on the planet is also the Most Profitable Brand as well? At Apple, every decision made, the entire culture, investment choices, structure and hiring decisions are all lined up behind the Apple brand to drive wealth through the Apple brand. 8Page
  9. 9. Running the P&L
  10. 10. Most marketers absolutely hate the P&L. It’s a chore to manage 2008 2009 2010 Net Sales 21,978 24,616 27,569 Cost of Goods Sold 12,866 14,925 17,313 Gross Margin 9,482 9,862 10,256 Research Development 346 352 360 Total SG&A 3,444 4,202 5,127 Ad Merch 568 858 1,296 TV - - 175 On Line 28 70 175 Print 57 75 100 PR 59 77 100 Sampling 3 13 50 Sponsorship 132 73 40 Research 200 100 5 Packaging 133 100 75 Display 4 29 200 Trade 426 400 376 Other SG&A 2,172 1,433 989 Contribution Income 5,763 5,244 4,772 Too many times it becomes about chasing invoices, entering in the right column, doing accruals and making sure that you hit your number. But what do you see when you first look at this P&L? First glance. • Where would you want to start digging in? Or does it look like just one big messy spreadsheet.
  11. 11. Quick analysis reveals potential problems: Dig Deeper 2008 2009 2010 Growth % Net Sales 21,978 24,616 27,569 12% Cost of Goods Sold 12,866 14,925 17,313 Gross Margin 9,482 9,862 10,256 43% 40% 37% Research Development 346 352 360 Total SG&A 3,444 4,202 5,127 22% Ad Merch 568 858 1,296 TV - - 175 On Line 28 70 175 Print 57 75 100 PR 59 77 100 Sampling 3 13 50 Sponsorship 132 73 40 Research 200 100 5 Packaging 133 100 75 Display 4 29 200 Trade 426 400 376 Other SG&A 2,172 1,433 989 Contribution Income 5,763 5,244 4,772 26% 21% 17% Doing some very simple math shows three potential major problems right away. 1. Gross Margin is falling each year—problem with either price or COGs? 2. Contribution Margin falling— Gross Margins, Spend Increases. 3. Spend growing faster than sales. Investment mode? 1 3 2 1 2 3
  12. 12. We make Brands Better. We make Brand Leaders better. There’s really four key areas on the P&L that you need to dig in to uncover the story. Price, Cost, Share, Market. Pricing Price cut? Customer discounts to drive volume? Trading Up/Down Product Mix Changed? More lower margin sales? Product Costs COGs went up due to supplier or materials? Marketing Costs Spend is up? Launching? Stealing share? Stealing Other Users Investing to steal competitive users? Defensive stance? Get Users to Use More Discounts to encourage volume per customer? New Category Investment to Enter into a new category? New Uses Education investment on potential uses? The Good News: to simplify your thinking and make it easier on you, these are only Eight Levers of the P&L that you need to focus on. Price Cost Market Share Market Size 12Page
  13. 13. We make Brands Better. We make Brand Leaders better. Using price as a weapon to drive Brand Value. Price When to Use • Increases: If the market or brand allows you. Passing along cost increases. Healthy brand, healthy market, power vs competition and channel. • Decreases: Fighting off competitor, sluggish economy, channel pressure. • Trading Up: Can you carve out a meaningful difference that goes beyond your current brand? Does your brand image/ratings allow it? • Trading Down: Risky, but you see unserved market, with minimal damage to image/reputation of the brand. Watch Outs • Difficult to execute because it has to go through retailers. Understand power relationships. Canadian retailers are powerful. • Competitors will (over) react. So your assumptions you used to go will change right after. • It’s not easy to change back. • Premium skus, can feel orphaned at retail world—missing ads or displays. • Managing 2 levels can be difficult— what to support, price differences etc. • Don’t lose focus on your core business. Can’t be all things to everyone. • Image risk, esp when trading downward. Trade Up Increase Price 1 13Page
  14. 14. We make Brands Better. We make Brand Leaders better. Examples of Formulas in Detail – The Price Increase 10% price increase against a 10% volume decrease Current New Price 2.50 2.75 COGS 1.00 1.00 Margin 1.50 1.75 Margin % 60% 64% Unit Forecast 100,000 90,000 Impact On Revenue $250,000 $247,500 Impact on Profit $150,000 $157,500 Formulas: Impact on Revenue Price x Units Current: 2.5 x 100 = $250k New: 2.75 x 90 = $247.5k Impact on Profit Margin x Units Current: 100 x 1.5 = $150k New: 90 x 1.75 = $157.5k When looking at a price increase it’s crucial to make assumptions as to what will happen to the unit volumes and then do the overall resulting revenue and profit for the options. 1 14Page
  15. 15. We make Brands Better. We make Brand Leaders better. Managing cost as a weapon to enhance the Brand’s Value. Cost When to Use • COGs Decreases: power over suppliers, potential raw material change, process improvement, off- shore manufacturing. • COGs Increases: Suppliers pass along costs, new technology, investing in brand’s improved image, going after higher end, new benefit or a format change. • Selling Cost Decrease: to counter changes in the P&L (price, volume or cost), short term P&L management, change in go-to- market model, product life cycle • Selling Cost Increase: Investment mode, proven payback in higher sales, defensive move to hold share. Watch Outs • With cuts, make sure the product change is not significantly noticeable. • Understand consumer impact on your brand’s performance and image. • Can the P&L cover these costs, either increased sales or efficiency elsewhere. • Always be in an ROI mindset: Manage your marketing costs as though every DOLLAR has to efficiently drive sales. • Short term cuts can carry longer term impact. • Competitive reaction can influence the impact of investment stance. Selling Costs 2 Product Costs 15Page
  16. 16. We make Brands Better. We make Brand Leaders better. Examples of Formulas in Detail – Gross Margin Sales $ 500 Cost of Goods Sold (COGS) $ 300 Gross Margin $ 200 Gross Margin % 40% Formulas: Gross Margin = Sales - COGS = 500 – 300 = 200 Gross Margin % = (Sales – COGS) / Sales = (500 – 300)/500 = 40% Margin is the most common Calculation for Marketers. Both margin dollars and % are key indicators to the health of a brand. 2 16Page
  17. 17. We make Brands Better. We make Brand Leaders better. Externally, the share and volume game are traditional tools for brand. Either an offensive or a defensive game. When to Use • Offensive: Competitive Advantage, Untapped Needs, Opportunistic, first mover advantage on new technology. • Defensive: hold the fort until you can catch up on technology, maintain profitability, loyal base of followers needs protecting. • When there is an opportunity to turn loyal users into creating a potential routine. Changing behaviours is more difficult than enticing trial. • When getting further trial might be capped out. Watch Outs • Attacking competitors can be difficult. It could just become an spend escalation. After the war, no winners, just losers. • Brand loyalty, trade-offs beyond unsatisfied area or just habit. • Channel could play one competitor against another for their own gain. • There has to be a real benefit connected to using more or it might look hollow/shallow. • Driving routines is a challenge. Even with “life saving” medicines, the biggest issue is compliance. • Find something in their current life to help either ground it or latch onto. (brushing routine) Get Users To Use More Steal Other Users Market Share 3 17Page
  18. 18. We make Brands Better. We make Brand Leaders better. Formulas in Detail – Compound Annual Growth Rate Year 1 Year 2 Year 3 Year 4 Year 5 Revenue $ 500,000 $ 600,000 $ 650,000 $ 700,000 $ 800,000 Annual Growth 20% 8% 8% 14% Formulas: Average Growth Rate = ((Y5 – Y1)/Y1))/# of years = ((800 – 500)/500)/5 = 12% CAGR = ((Y5 / Y 1) to the power of (1/#years)) – 1 = (800/500 to the power of 1/5) – 1 = (1.6 to the power of 0.2) – 1 = 9.85% Knowing the compound annual growth rate is a crucial volum step to the ROI cacluation. Scared Off By Math, use the online CAGR Calculator at the Investopedia website 3 18Page
  19. 19. We make Brands Better. We make Brand Leaders better. 86% 82% 63% 16% 2% 98% 96% 85% 43% 4% LIKE IT BRAND BELOVED BRAND 25% 95% 50% 98% 77% 88% DirectionImplication Aided Awareness Familiarity (Unaided) Consideration Purchase Loyalty 2 1 2 1 12% 9%  Leaky Funnel: Consumers falling out at consideration stage. Brand X is a “new” brand. Consumers’ go with trusted usual brand.  Focus awareness at first point of consideration. Invest in on-line to keep consumer engaged  In-store Switching: Significant drop off at purchase stage means Consumers are moved to other brands as they go in-store.  Manage the shopping experience through purchase phase. 1 2 How the Brand Funnel Can Showcase Issues. Tracking via Brand Funnel is a Great Tool to show relative strength of one brand vs another. Highlights leaks. 3 19Page
  20. 20. We make Brands Better. We make Brand Leaders better. Leaky Bucket: Matches Brand Experience up to Buying System Voice of Customer highlights biggest leak: Match each stage of the buying system to the views of the consumer helping find potential reasons for brand rejection. Consumer Views Reasons for Rejection 20Page
  21. 21. We make Brands Better. We make Brand Leaders better. Game Changers are about finding new users or even new uses for the consumer. When to Use • When there is an untapped or underserved need. • Changing demographic that impacts your base. • You’re able to translate/transfer your reputation to a new user group. • Format Line Extensions that take your experience or name elsewhere . • Able to leverage same benefit in convenient “on the go” offering. Watch Outs • There should be something within your product/brand that helps fuel the brand post trial. • Trial without repeat, means you’ll get the spike but then bust. • Substantial investment required. Don’t let it distract from protecting the base loyal users. • Make sure current brand is in order before you divert attention, funding and focus on expansion area. • Investment needed, could divert from spend on base business. • Legendary stories (Arm and Hammer) don’t come along as much as we hope. Market Size Find New Users Create New Uses 4 21Page
  22. 22. We make Brands Better. We make Brand Leaders better. Examples of Formulas in Detail – Return on Investment Year 1 New Product Sales $ 500 Cost of Goods Sold (COGS) $ 300 Gross Margin $ 200 Gross Margin % 40% SG&A for New Product $ 150 Contribution Income $ 50 Formulas: Contribution Margin = Gross Margin – SG&A = 200 - 150 = 50 ROI = (Contribution Margin/Investment) Option 1: = (Contribution Margin/SG&A) = 50/150 = 33% Option 2: = (Contribution Margin/COGS + SG&A) = 50/(150+200) = 11% Companies seem to measure ROI differently. Ask Your Finance Person how they Measure and Calculate ROI 4 22Page
  23. 23. Common Finance Terms For Brand People To Know • CAGR = Compound Annual Growth Rate • Gross Revenue vs Net Revenue • Gross Profit • Gross Margin % • Gross Profit Contribution • Contribution Income • Opportunity Cost • Return on Investment (ROI) • Production/Plant Efficiency • Marketing Spend Ratio • Incremental Margin Contribution • Incremental Spend • Cost Neutral • Sales Cannibalization (buyer fatigue) • Average Price Per Unit 23Page
  24. 24. We make Brands Better. We make Brand Leaders better. As you re-focus a portfolio of brands, look externally to the market to judge investment decisions. • Look at your portfolio of brands and see where your brand fits. Compare market attractiveness versus the brand’s competitive strength. • Brands that are in an attractive market and have a strong share position should be high growth brands (green). 24Page
  25. 25. We make Brands Better. We make Brand Leaders better. Then look Internally with an ROI based on sales growth rates and contribution margin rates • The second way to look at your brand is the projected 5 year growth rate against the brand’s contribution margins. • Brands that high growth and high margin position should be high growth brands (green). 25Page
  26. 26. The More Loved a Brand the more Valuable the Brand. Driving wealth through connecting. © Beloved Brands Inc.
  27. 27. We believe the more loved a brand is by consumers, the more powerful and profitable that brand can be. LOVE IT INDIFFERENT BELOVED LIKE IT Brands move along Love curve1 Promise Experience Story FreshnessStrategy Connect to build love in 5 ways Brand Consumer 2 Brand Power Media Consumers Influencers Culture Channels Competitors Suppliers New Entrants Love creates sources of power3 Price Cost Share 1 2 3 4 5 6 7 8 Power drives profit in 8 ways4 Price Trading up Product Cost Selling Cost Market Size New users Use more New Categories New uses Profit = (Price – Cost) x (Share x Mkt. size) Love Connection Power Growth Profit
  28. 28. LOVE IT INDIFFERENT BELOVED BRAND LIKE IT No Opinion Not Aware. Confused. Not Interested. Stick to Current Brand. Satisfies Need Thought About it. Tried it. Practical. Makes Sense. Crave It Great Experience. A Favourite. Emotional Choice. Lifestyle Fit. Self Expressive Outspoken Fan. Would never switch. Memories. Built into Life. Consumers move along a “Brand Love Curve”, as they become more connected to Brands, their feelings & behaviors change. © Beloved Brands Inc. I’m curious for knowledge o be ced I want to be in Control I am Comfortable I want to be myself Our Consumer Likeable Friendly In mate Happy Easy Going Nurtured Compassion Down to Earth Relaxed Honest Family Trust Safe Respect Reliable Knowledge Wisdom Smarter Competent I want to feel liked © Hotspex Inc Emo onal Cheat Sheet for Brands
  29. 29. We make Brands Better. We make Brand Leaders better. At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings. Loyal Emotional Connected Favorite Routine Love It Use It Functional Enjoy It Rational Random Like It It will do Unfamiliar Other Brand Basic Needs Easily Switch Indifferent Beloved Brands Survey Tracker © Beloved Brands Inc. Un-relenting Personal Possessive Outspoken Ritual Beloved 29Page
  30. 30. Stage Consumers View Why is your Brand here Indicators in the Market How to get the next stage Indifferent No Opinion. Don’t care. Bored. Unaware. Confused. Hated. New Product. You sell but don’t market. Or you’ve fallen from grace. Skinny Funnel. Shrinking Margins. Share Squeeze. No Effort = No Sales. Consideration & Purchase. Focus on niche. Mind share. Mind Shift. New News. Like It It will do. Buy It. Functional, Rational. Basic Needs. Ordinary. Protective.& Cautious. Rational thinking. New Brand with Momentum. Inconsistent. Low conversion to sales. Brand doesn’t feel different. Stagnant share. High Private Label. Build Bigger Following. Connect Emotionally with those that Love. Build Big Idea. Love It Loyal, possessive, outspoken. Emotional. Part of their life. Emotional Connection. Consistent Positive Experiences. Surprise and Delight. Robust Brand Funnel. Healthy Tracking Scores. Share Gains. Healthy P&L. Emphasize the Experience. Tug at Heart to drive deeper Connection. Magic. Beloved Brand For Life Iconic. Perceived quality. Favourite part of their day. Outspoken fans. Self-Expression. Perceptions. Experience. Wield Power. Dominant Share. Net Promoter Scores. Preferential Treatment. Broaden the Audience. Broaden the Offering. Don’t be Complacent. Consumers act differently at each stage of the Brand Love Curve. © Beloved Brands Inc. 30Page
  31. 31. Consumers Connect with Brands based on a Big Idea and the 5 connectors must align to that Big Idea How well does the brand concept connect to consumers? How well does the brand experience live up to and consistently deliver the promise? How well does the brand communicate their differences and move consumers? How well does the brand stay fresh and on top of trends with consumers? Promise Experience Brand Story Freshness Positioning Innovation Culture & Operations Communication What focused choices does the brand make to drive growth and profits? Strategy Brand Plan M a r k e t i n g E x e c u t i o n I’m curious for knowledge I want to be Noticed I feel Optimistic I want to be in Control I Comforta I w to my Our Consumer Mo vated Special Successful Inspired Excited Interes ng Alive Cool Playful Popular Trendy Likeable Friendly In mate Happy Nurture Compassion Fam Trust Resp Knowledge Wisdom Smarter Competent I want to feel liked I want to feel Free Beloved Brands The Brand The Big Idea
  32. 32. We make Brands Better. We make Brand Leaders better.32Page The BIG IDEA should drive the INTERNAL and EXTERNAL story as well as every part of your organization. The brand’s BIG IDEA should build a story you tell to the external market but also inside your organization …and everyone on the Brand should look to the BIG IDEA as a beacon for how to perform in their jobs.
  33. 33. We make it so easy to use electronics, you will feel smarter and at the leading edge of technology, no matter who you are. Apple starts with the consumer experience & works back to the technology, helping create experiences that surpass the promise. Technology shouldn’t be intimidating or frustrating. We make it simple enough so you can be engaged right away, do more and get more, with every Apple product. Surprising technology that changed the world: iPod, iTunes, Macs, iPhone & iPad. Every product was stylish, simple, easy to use & leap frogged competitors. Promise Experience Brand Story Freshness Positioning Innovation Culture & Operations Communication Technology made simple and consumer friendly across a broad array of electronics products. Products have simple stylish designs, user friendly functionality, convenience and speed. Strategy Brand Plan M a r k e t i n g E x e c u t i o n APPLE’s BIG IDEA: Apple makes technology so SIMPLE everyone can be part of the future The Brand Consumer
  34. 34. Brand Power Beloved Brands turn Love into a Source of Power SUBSTITUTES can’t duplicate emotional connection of beloved brand. It’s less thinking, more feeling. CONSUMERS feel more, think less. They are fans, who crave brand and build it into their life—can’t live without. NEW BRANDS can’t break emotional bond with loyal users, need game changing leap frog technology. SUPPLIERS at mercy of beloved brand, willing to cut costs to be/remain part of the brand. CHANNEL needs beloved brand, can’t stand up to them: powerless in negotiations. Consumers switch stores before they switch brands. Porter’s Model shows how Beloved Brands use all 5 forces to gain power and win in the market.
  35. 35. Brand Power Going beyond Porter to see 4 other sources of power SUBSTITUTES can’t duplicate emotional connection of beloved brand. It’s less thinking, more feeling. CONSUMERS feel more, think less. They are fans, who crave brand and build it into their life—can’t live without. NEW BRANDS can’t break emotional bond with loyal users, need game changing leap frog technology. SUPPLIERS at mercy of beloved brand, willing to cut costs to be/remain part of the brand. EMPLOYEES with brand and culture becoming one. They are advocates who want to work there. Fully engaged and motivated on day 1. POPULARITY Crowds follow crowds, and in a world of social media, badge is crucial. KEY INFLUENCERS whether expert reviews, anonymous on line reviews, friends on Facebook or at the lunch table recommend the beloved brand. All MEDIA favors beloved brand. PAID media gets better slots, more integrations. Higher EARNED media as the brand is newsworthy. Organic SEARCH beats need for paid SEO. With SOCIAL, advocates follow and spread influence to friends CHANNEL needs beloved brand, can’t stand up to them: powerless in negotiations. Consumers switch stores before they switch brands.
  36. 36. We make Brands Better. We make Brand Leaders better. Beloved Brands turn Power into Profit Driving increased demand will drive the price up, and the quantity up, which gives you a better economies of scale Price Quantity Supply Demand Increased Demand $400 $250 10M 15M Profitability = Margin x Quantity Margin Quantity Premium price Current Users using more Find New Uses Cost of Goods Over head Selling Price Penetrate New Users Enter New Categories Market Share Trading Consumers Up Marketing Costs Selling Costs Expand Category Size Market Size Costs 36Page
  37. 37. We make Brands Better. We make Brand Leaders better. Beloved Brands turn Power into Profit Premium and Inelastic: Loyal consumers, weakened channels pay premiums, and trading up where offered. More engaged employees deliver better experience—even more premiums. Efficient and Powerful: Economies of scale. Suppliers cut costs due to volume & wanting brand in portfolio. Efficient media spend, free media through search, earned and social. Gov’t willingly subsidize. Partners give favorable terms. Momentum and Tipping Point: Crowds draw crowds. Power of media (search + social + earned) keeps brand in the conversation with heavy influence. Competitors can’t respond to the momentum. Loyalists Will Follow Wherever: Loyal users will follow where brand goes, and doors will open to new ventures. The idea of brand no longer tied to product, but to how brand makes you feel. Selling Price Costs Market Share Market Size Beloved Brands use the 8 ways on the P&L to drive HIGHER PROFITS through higher margin %, lower cost, share gains and enter new markets. 1 2 3 4 5 6 7 8 Higher Margin % Lower COGs & Expenses Share Gains New Markets Brand Profit = (Price – Cost ) x (Market Share x Market Size) Price Level Trading Up/Down Product Costs Marketing Costs Stealing Others Get Users to use more Enter New Category Find New Uses 37Page
  38. 38. We make Brands Better. We make Brand Leaders better. Beloved Brands drive strong sales growth, which helps the P&L work harder and more efficiently. 1. Higher volume helps you exert pressure on costs. That could be supply costs, operations costs, distribution over even media costs. 2. Get More for Less From the Trade. You can begin exerting power over the sales channels to your advantage–trimming variable trade costs with retailers while demanding more display, prime real estate, coop advertising and more control over pricing. ROI on trade programs. 3. Smarter More Efficient Management: manage your inventories, meet customer expectations, control pricing and drive cheaper costs. 4. Growth means you start outgrowing any fixed costs. This includes start up costs, sales force, product plants or R&D costs. 5. Lower Cost of Capital: More certainty means lower risk and you can re-invest, knowing the ROI will be quicker and stronger. Beloved Brand Gives Momentum, that Makes it Easier on the P&L. 38Page
  39. 39. We make Brands Better. We make Brand Leaders better. Apple has been able to turn Love into Power and then into Profits and a remarkable increase in Brand Value 0 100 200 300 400 500 600 2008 2009 2010 2011 2012 Apple Market Capitalization • In the past 5 years, Apple’s Market Capitalization has gone up from $75 Billion up to $570 Billion. Apple is now the most valued Brand in the world Most Valued Brands Brand Finance $ Value 1. Apple 73B 2. Google 48B 3. Microsoft 46B 4. IBM 39B 5. Amazon 27B Beloved = Power = Growth = Profit 39Page
  40. 40. Love Connection Power Growth Profit
  41. 41. “If you don’t love the work, how do you expect the consumer to fall in love with your brand?” Graham Robertson Beloved Brands Inc.
  42. 42. What is your current competitive position in the market? Leader Challenger Flanker Guerilla Product Concept Idea Service/Ex perience Price/Value Continue Momentum Turn Around Re-Focus Start Up Indifferent Like It Love It Beloved How tightly connected is your consumer to your brand? What is the core strength your brand can win on? What is the current business situation that your brand faces? Model for helping to choose your Brand Strategy 1 4 2 3 Brand Strategy
  43. 43. Who are we at Beloved Brands? How can we help your Brand? We make Brands better. We make Brand Leaders better.™
  44. 44. Brand Coaching We promise to make your Brand better by digging deep on the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. Brand Leader Training We promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging your team to push for greatness so everyone can unleash their full potential. We make Brands better. We make Brand Leaders better.™
  45. 45. Beloved Brands can help your brand in five ways: Create a winning Brand Positioning Write Brand Plans everyone can follow Find Advertising that drives Brand Growth Drive Creativity and Innovation Make your Team of Brand Leaders Better 2 3 4 1 5
  46. 46. Grays Cookie is the… To… That … That’s Because … (category frame of reference) Tasty low fat cookie (Target Market) Healthy Proac ve Preventers, 25-40, who want to do as much for overall health as they can (Ra onal/emo onal benefit/promise) gives you the best tas ng yet guilt free pleasure so you can stay in control of your health. • In blind taste tests, Grays Cookies matched the market leaders on taste, but only has 100 calories and 2g of fat. (Reasons to believe) With the target, benefit and reason to believe, you’ve created a great Posi oning Statement. • In a 12 week study, consumers using Grays once a night as a desert were able to lose 5lbs. • Grays uses all natural ingredients. Posi oning Positioning Statement Create a winning Brand Positioning We coach Brand Leaders on creating a Brand Idea and Positioning that will help your Brand win in the market. Beloved Brands Inc. 55 Bridewell Cres., Richmond Hill, ON Canada L4C 9C3 T: 416-885-3911 E: graham.robertson@beloved-brands.com CREATIVE BRIEF FOR GRAY’S COOKIES 1. Why Are We Advertising · Drive awareness and consideration of the new Grays Cookies as “The Healthy Choice to Snacking” brand positioning. 2. What’s the Consumer Problem We are Addressing · Cookies are my enemy. I’m always watching what I eat. And then BAM, I see a cookie and I’m done. As much as I look after myself, I still like to sneak a cookie now and then. 3. Who are you talking to? · “Proactive Preventers”. They do whatever it takes to stay healthy, they run, workout and eat right. Women, 25-45 with bulls-eye target of 35-40. For many, Food can be a bit of a stress-reliever and escape even for people who watch what they eat. 4. Consumer Insights · “I have tremendous will-power. I work out 3x a week, watch what I eat and maintain my figure. But we all have weaknesses and cookies are mine. I just wish they were less bad for you” · “I read labels of everything I eat. I stick to 1500 calories per day, and will find my own ways to achieve that balance. If I eat a 400 calorie cookie, it may mean giving something up.” · “I shop at Whole Foods and love to explore the new items. The last few years, there have been some tremendous advances in making great tasting options—in a healthy package.” 5. What does our consumer think now? · I’ve never heard of Grays Cookies. But I’d likely need to try it and see if I like it. If it really does taste that good, it’s something I might consider as a snack. 6. What do you want your consumer to think/feel/do? (Desired Response) · We want them to try Grays and see if they like the great taste. 7. What should we tell them? (Stimulus: benefit) · Grays Cookies are the best tasting yet guilt-free pleasure so you can stay in control of your health. You have to try it to believe it. 8. Why should they believe us? · Grays combines the great taste in a low fat and calorie sensible cookie. In blind taste tests, Grays Cookies matched the market leaders on taste, but only has 100 calories and 2g of fat. · In a 12 week study, consumers using Grays once a night as a desert were able to lose 5lbs. · Grays uses all natural ingredients. 9. Tone and Manner · Successful. Motivated. Reliable. In Control. Natural. 10. Media Options · Main creative will be in specialty health magazines, event OOH signage and in-store. Want to carry the idea into digital, social media and a microsite. 11. Mandatories · The line: “best tasting yet guilt-free pleasure” must be included in the spot. · 25% of Print must carry the Whole Foods logo as part of our listing agreement. · Legal disclaimer on the taste test and the 12-week study. Creative BriefBrand’s Big Idea 1 We use a Workshop Style process that helps your team find a winning Brand Positioning that can be validated with consumers through a testable Brand Concept. We’ll work to create a Big Idea that frames the external and internal promise of your brand. We’ll leave you with an execution ready Creative Brief to hand to your agency. Brand Concept
  47. 47. Write Brand Plans everyone can follow We coach Brand Leaders to build highly focused Strategic Brand Plans that everyone in your organization can follow 2 Promise: We make it so easy to use electronics, that you will feel smarter and at the leading edge of technology Experience: Apple starts with the consumer experience & works back to the technology, elimina ng frustra ons. Story: Technology shouldn’t be in mida ng or frustra ng. We make it simple enough so you can be engaged right away. Freshness: Surprising technology that changes the world. Every product is stylish, simple, easy to use & leap frogged compe tors. Strategy: Technology with stylish designs made simple & consumer friendly stretching across a broad array of electronics products. Purpose: At Apple, we want to make a dent in the universe by challenging the status quo and thinking differently. We believe equally in art and technology. Brand Vision: Apple wants everyone in the world to be part of the future. Brand Strategy Road Map for the Future Values: Consumer first, simplicity and ease-of-use, stylish designs, fast-to-market, community. Goals: Con nue 10% sales growth, double market share in Asia, launch 5 new technologies per year. Strategies: Regain Lead in Smart Phone Technology Geographic focus into China Build around Cloud technology High service to ghten Apple community Strategies: • Size op ons • Win on design • Launch watch • Specific products • Brand Building • New retail space • Launch into TVs • Integrate retail purchasing • Take services online • Increase courses • New retail spaces The Big Idea: Apple makes technology so SIMPLE that everyone can be part of the future © Beloved Brands Inc. Brand PlanIssues Assessment Strategic Road Map We work with your team to dig deep to uncover the key issues. We use a Workshop Style process to help your team lay out a long range Strategic Road Map and Brand Plan that everyone in your organization can follow. We then work with your team to create actionable Project Plans for each tactic with goals, milestones and budget. Project Plans
  48. 48. Find Advertising that drives Brand Growth We coach Brand Leaders and Agencies at every stage so they can to create Better Advertising to drive growth on your brands Advertising AdviceProvocative Voice Agency Search 3 Advertising Audit We work with your brand team and agency to find Advertising that drives growth on your brand. We conduct Advertising Audits to help uncover better processes for your team. With a provocative voice, we provide advice at every stage of the advertising process from assessing creative brief through judging Advertising ideas to final production. We also provide agency evaluation and lead search processes.
  49. 49. Drive Creativity and Innovation We coach Brand Leaders and Agencies at every stage of Marketing to get Creativity and Innovation into the marketplace 4 Brainstorming Project Management We lead Brainstorming Workshops to drive new ideas into your organization. We help create systems to judge and evaluate ideas based on match to consumer need states and ease of execution. We ensure strategic alignment of the ideas to your overall Brand Plan and then turn the ideas into actionable Projects. Six Elements Needed for Good Strategy Page 1 2 3 4 5 6 Strategic AlignmentIdea Evaluation
  50. 50. Make your team of Brand Leaders Better We can customize training programs to the needs of your team with a strong menu of interactive Brand Leadership Workshops 5 1. Strategic Thinking 2. Brand Plans 3. Positioning Statements 4. Creative Briefs 5. Brand Analysis 6. Better Advertising 7. Media Plans 8. How to Run Your Brand 9. Managing your Marketing Career 10. Motivational Lunch and Learns 1 2 3 4 5 6 7 8 9 10 “Graham makes Brand Leaders. His boot camp style instruction is perfect for the development of anyone in brand management. He challenges you to be better, makes you question your decisions with rigor and provides the right level of coaching to bring you to the next level.” Program Participant We have created the Brand Leadership Center that addresses every Marketing topic that a Brand Leader needs for a successful career.
  51. 51. The great Brands we have coached We bring our Brand Experience to your Table “Beloved Brands assisted us in the transformation of our brand positioning and company culture. Graham helped steer people towards finding their own solutions and owning them, as opposed to just giving people the answers.” Keith Gordon President, NFL Players Inc. What our Clients have to say “Beloved Brands has been a tremendous asset to Earls. They helped us to uncover a new vision, brand DNA and strategic business plan. We were so pleased with the results, we used Beloved Brands to develop Earls’ cultural brand service values which were rolled out to all 6000+ employees.” Monique Gomel VP Marketing, Earls Restaurants
  52. 52. Graham is one of the voices of the modern Brand Leader. He started Beloved Brands, knowing he could make Brands better and Brand Leaders better. He brings his vast experience to the table. Graham spent 20 years in Brand Management leading some of the world’s most beloved brands at Johnson and Johnson, Pfizer, General Mills and Coke, rising through the ranks up to VP Marketing. Graham played a major role in helping Pfizer win Marketing Magazine’s Marketer of the Year award. As a Brand Coach, he can help you create a winning Positioning Statement for your brand, write a Brand Plan everyone can follow, find Advertising that drives growth and he can also train your team of Brand Leaders on everything marketing. Our client roster includes NFL Players Inc., NFLPA, Reebok, Capital One, Pfizer, 3M, Sun Products and Earls. Graham’s Beloved Brands blog has over 3 million views, and his public speaking appearances inspire Brand Leaders to love what they do. Graham Robertson • Beloved Brands
  53. 53. We believe the more loved a brand is by consumers, the more powerful and profitable that brand can be. LOVE IT INDIFFERENT BELOVED LIKE IT Brands move along Love curve1 Promise Experience Story FreshnessStrategy Connect to build love in 5 ways Brand Consumer 2 Brand Power Media Consumers Influencers Culture Channels Competitors Suppliers New Entrants Love creates sources of power3 Price Cost Share 1 2 3 4 5 6 7 8 Power drives profit in 8 ways4 Price Trading up Product Cost Selling Cost Market Size New users Use more New Categories New uses Profit = (Price – Cost) x (Share x Mkt. size) Love Connection Power Growth Profit
  54. 54. Graham Robertson • Beloved Brands • 416 885 3911 • graham@beloved-brands.com Ask us how we can help make your Brands and your team of Brand Leaders better.

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