BMA Southern California Chapter: Managing Your Brand as an Asset ANDREW FLYNN JULY 18, 2002
Agenda <ul><li>Who is Prophet? </li></ul><ul><li>Why is Brand Asset Management Important? </li></ul><ul><li>What are the K...
About Prophet – Who We Are <ul><li>Prophet is a strategic professional services firm committed to building and growing gre...
About Prophet – What We Do <ul><ul><ul><ul><li>Brand Protection:  Prophet leverages our network of brand experts to provid...
About Prophet – Some of Our Clients <ul><li>Prophet’s clients come from a variety of industries and range from start-ups t...
Agenda <ul><li>Who is Prophet? </li></ul><ul><li>Why is Brand Asset Management Important? </li></ul><ul><li>What are the K...
The Top Determinants of Brand Strength Customer Loyalty Price Premium “ An increase in customer loyalty of only 5% can lif...
Powerful brands create significant value Source: Interbrand 1 2 3 4 5 6 7 8 9 10 Rank 72.5 70.2  53.2  39.0  38.5  38.1  3...
Agenda <ul><li>Who is Prophet? </li></ul><ul><li>Why is Brand Asset Management Important? </li></ul><ul><li>What are the K...
Nine ways to manage your brand as an asset <ul><li>Formally link business and brand strategy </li></ul><ul><li>Create a un...
1. Formally link business and brand strategy Resonate Differentiate Credibility Brand Strategy With Customers And Employee...
Connecting the brand vision to a financial growth gap helps demonstrate the importance of bringing it to life 2006 (3.5%) ...
2. Create an aspirational and relevant Brand Identity Today Future Time Brand And Customer Value Current perceptions of th...
Brand Identity provides strategic direction <ul><li>Brand Identity is… </li></ul><ul><ul><li>Future-focused, aspirational ...
Virgin’s Brand Identity Brand Identity Essence of the Brand Irreverence Core Identity Elements Innovation Fun & Entertainm...
Teradata’s Brand Identity To here From here... <ul><li>Data warehouse </li></ul><ul><li>Scalability </li></ul><ul><li>Big ...
3. Create a clear and distinct Positioning <ul><li>Communicates the elements of the identity that resonate and are most cr...
Benefits Hierarchy Most meaningful & most difficult to imitate, but hardest to deliver Easiest to deliver, but least meani...
Virgin’s Brand Positioning Extended Identity Elements Core Identity Elements Essence of the Brand <ul><li>Irreverence </li...
Case Study:  Teradata Inputs Testing & Screening Recommended Identity & Positioning   Brand Implementation   Future Positi...
A global Positioning statement can be tailored to support local needs USA  Zippo’s Core Global Positioning Statement Zippo...
4. Extend your brand strategically <ul><li>Is the extension consistent with your longer term brand vision and strategy? </...
Stronger brands allow for more differentiated product line extensions Office (e.g., Scotch Tape) Transportation Safety (e....
Brands with lower brand meaning cannot support much extension ?? Beliefs and Values Benefits Attributes High Low Degree of...
Knowing when to extend your brand… Sainsbury’s Bank Faster Chips The Blue Card Consulting X Box Successful Extensions
…and knowing when not to is a key driver of brand success Unsuccessful Extensions Mercedes C-Class Coke Clothes Wine Coole...
Brand extension ideas should be evaluated for fit in all regions USA GLOBAL Germany Japan Mexico GLOBAL Germany Japan Mexi...
5. Build a strategic Brand Architecture <ul><li>The logical,  strategic  and relational structure for all of the brands in...
The Brand Architecture spectrum A  Branded House  uses a single Master Brand to span a set of offerings that operate only ...
A flexible architecture can be used to address local differences <ul><li>The Sony brand system uses the Sony brand in a va...
Teradata’s Brand Architecture NCR brand is tied to cash registers and has limited credibility in DW space.  Leading with N...
6. Evaluate and align touchpoints to deliver <ul><li>Each touchpoint can reinforce or denigrate the brand, therefore the t...
Whirlpool’s Touchpoint Wheel Pre-Purchase Experience Post Purchase Experience Purchase  Experience Influencing Touchpoints...
7. Consistently deliver on your Brand Contract <ul><li>A Brand Contract includes all the promises that the brand makes to ...
The result of NOT delivering on your Brand Contract Brand Contract  <ul><li>Consistent, fast, friendly service </li></ul><...
8. Practice effective global brand management <ul><li>A company’s primary goal should be global brand leadership, not a gl...
Companies use different methods for encouraging sharing of best practices and brand insights <ul><ul><li>Holds a global me...
There are varying degrees of centralization of brand management Options for  Global Brand Management 1. Single, Unified Gl...
9. Set the organization up for success <ul><li>Brand Metrics </li></ul><ul><li>Enable analysis and decision making </li></...
Track specific brand metrics ROBI Metrics ROBI SM  Measurement Analysis Decision Making Benchmarking Diagnosing Allocating...
There is only one kind of valuable brand metric – one that drives to a business action Business Action Touchpoint Metrics ...
The foundation for successful internal brand development is assimilating it into the culture <ul><li>As employee support f...
A plan for implementing change enables a company to build a brand-based culture Develop Strategy Build a Foundation Implem...
Nine ways to manage your brand as an asset <ul><li>Formally link business and brand strategy </li></ul><ul><li>Create a un...
What Impact Does This Approach Have on Brand Asset Management? <ul><li>Management guidelines </li></ul><ul><li>Organizatio...
What Impact Does This Approach Have on Brand Asset Management? M anagement guidelines O rganizational alignment R ealized ...
BMA Southern California Chapter: Managing Your Brand as an Asset ANDREW FLYNN JULY 18, 2002
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  • This reflects the current brand architecture The architecture emphasizes the equity of NCR – those equities are an established, old company that makes cash registers NCR doesn’t have credibility in the new economy Given limited budgets, Teradata will get minimal visibility, this minimizes the current Data Warehousing related equities of the brand This option may require the same investment as the other options in order to modify these negative NCR perceptions This NCR masterbrand strategy would create synergies with other corporate NCR marketing and advertising efforts Enables a stronger and more powerful identity and positioning for the Teradata brand Leverages existing equities of the Teradata brand – Data Warehousing – equities that are relevant to NCR’s Data Warehousing strategy NCR as an endorser allows leverage of the financial stability, reliability, and trust associations of NCR This option will require about the same investment than NCR as the driver Teradata does not have high enough awareness or credibility to stand entirely on its own today This option does provide clarity of focus because there are no other brands associated with it This may be the “answer” for the longer term after awareness of Teradata is increased, its image and identity further defined, and its positioning established in the marketplace This option would require a larger investment than the other two options in order to establish the Teradata brand
  • Relevant Aspects of Corporate &amp; Brand Strategy Brand Architecture Strategic Intent Business Marketing Strategy Marketing Metrics Advertising &amp; Sponsorship Framework Gas, Power &amp; Renewables Chemicals Long-term Retail Framework Integrated Marketing Mix Sponsorship Evaluation Measuring Effectiveness Customer Insight Short-term Retail Framework
  • Title Goes Here (Arial 28)

    1. 1. BMA Southern California Chapter: Managing Your Brand as an Asset ANDREW FLYNN JULY 18, 2002
    2. 2. Agenda <ul><li>Who is Prophet? </li></ul><ul><li>Why is Brand Asset Management Important? </li></ul><ul><li>What are the Key Steps to Brand Asset Management? </li></ul>
    3. 3. About Prophet – Who We Are <ul><li>Prophet is a strategic professional services firm committed to building and growing great brands and businesses </li></ul><ul><ul><li>We work with companies from strategy through execution to better manage their brand as an asset; resulting in increased profitability and a true competitive advantage </li></ul></ul><ul><ul><li>Our 80+ consultants bring real-world experience, deep client service expertise and the thought leadership of David Aaker and Scott Davis to engagements </li></ul></ul><ul><ul><li>Prophet has offices in San Francisco, Chicago, New York, London, and Tokyo (6/02) and is also a member of Catenas, a global network of best-of-breed professional services companies </li></ul></ul>Leading Brand Thinking
    4. 4. About Prophet – What We Do <ul><ul><ul><ul><li>Brand Protection: Prophet leverages our network of brand experts to provide expert testimony to resolve litigious conflicts involving the creation and ownership of brand equity </li></ul></ul></ul></ul>Develop Manage Grow Protect <ul><ul><ul><ul><li>Brand Leadership : We work with clients to link brand initiatives to overall business strategy, and to define, differentiate, and position a brand or family of brands </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Brand Operationalization : Prophet helps organizations bring their brand to life by fostering internal understanding of brand, optimizing the customer experience, and developing marketing programs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Brand-Driven Growth : We identify and develop new revenue opportunities for companies to leverage their brands via new markets, products, or customer segments </li></ul></ul></ul></ul><ul><li>Prophet has four primary services which enable companies to develop, manage, grow, and protect one of their most valuable assets: their brand </li></ul>
    5. 5. About Prophet – Some of Our Clients <ul><li>Prophet’s clients come from a variety of industries and range from start-ups to well established global brands </li></ul>
    6. 6. Agenda <ul><li>Who is Prophet? </li></ul><ul><li>Why is Brand Asset Management Important? </li></ul><ul><li>What are the Key Steps to Brand Asset Management? </li></ul>
    7. 7. The Top Determinants of Brand Strength Customer Loyalty Price Premium “ An increase in customer loyalty of only 5% can lift lifetime profits per customer by as much as 95%” “ In some sectors, an increase of customer loyalty of just 2% is equivalent to a 10% cost reduction” “ Over 50% of customers would be willing to pay 20-25% price premium to the brand that they are most loyal to” “ A 1% increase in brand equity can result in a 1% increase in stock price” “ 50% of customers are willing to try a new product from a preferred brand because of the implied endorsement, credibility and trust.” “ It takes 7 to 10 times the cost and effort to gain a new customer as it does to keep an existing customer” “ I Would Travel Further” “ I Would Pay More” “ I Would Wait Longer”
    8. 8. Powerful brands create significant value Source: Interbrand 1 2 3 4 5 6 7 8 9 10 Rank 72.5 70.2 53.2 39.0 38.5 38.1 36.4 33.6 27.9 25.5 2000 Interbrand Brand Valuation (billions $) 2000 2001 68.9 65.1 52.8 42.4 35.0 34.7 32.6 30.1 25.3 22.8 2001 Interbrand Brand Valuation (billions $)
    9. 9. Agenda <ul><li>Who is Prophet? </li></ul><ul><li>Why is Brand Asset Management Important? </li></ul><ul><li>What are the Key Steps to Brand Asset Management? </li></ul>
    10. 10. Nine ways to manage your brand as an asset <ul><li>Formally link business and brand strategy </li></ul><ul><li>Create a unique and relevant Brand Identity </li></ul><ul><li>Create a clear and distinct Positioning </li></ul><ul><li>Extend your brand strategically </li></ul><ul><li>Build a strategic Brand Architecture </li></ul><ul><li>Evaluate and align touchpoints </li></ul><ul><li>Consistently deliver on your Brand Contract </li></ul><ul><li>Practice effective global brand management </li></ul><ul><li>Set the organization up for success </li></ul>Managing Your Brand as an Asset
    11. 11. 1. Formally link business and brand strategy Resonate Differentiate Credibility Brand Strategy With Customers And Employees Vs. Competitors Business Strategy <ul><li>Viable business model </li></ul><ul><li>Viable profit model </li></ul>Execution <ul><li>Planning (e.g.,communications road map, marketing, site plans, etc.) </li></ul><ul><li>Implementation </li></ul><ul><ul><li>Internally (e.g. communications, brand behaviors, culture) </li></ul></ul><ul><ul><li>Externally (e.g. brand customer relationship) </li></ul></ul>Linkage Between Business and Brand Strategy
    12. 12. Connecting the brand vision to a financial growth gap helps demonstrate the importance of bringing it to life 2006 (3.5%) 5-Year CAGR 2001 $430 million $630 million 8% $100 million $100 Million $70 million = Current Business = Acquisitions = New Products = Brand Building <ul><li>Options to fill the brand-driven growth gap: </li></ul><ul><ul><li>Build and leverage your brand more successfully—through strategic line extensions, premium pricing, partnerships, licensing opportunities, etc. </li></ul></ul>5 Year Growth Gap = $270 million
    13. 13. 2. Create an aspirational and relevant Brand Identity Today Future Time Brand And Customer Value Current perceptions of the brand Platform to move the brand along its path to its aspirational identity. Demonstrates the unique and beneficial differentiation of the brand; resonates and is credible with customers. Brand Image Brand Identity Aspirational goal of the brand; Aspirational associations customers should have after repeated exposure to/experiences with the brand. Brand Positioning Brand Positioning Tagline Messages Brand Positioning Touch points
    14. 14. Brand Identity provides strategic direction <ul><li>Brand Identity is… </li></ul><ul><ul><li>Future-focused, aspirational and provides a vision for the organization to strive for </li></ul></ul><ul><ul><li>The emotional link desired between product and customer </li></ul></ul><ul><li>Brand Identity will provide… </li></ul><ul><ul><li>Organizational touchstone, both internally and externally </li></ul></ul><ul><ul><li>The basis for crafting the strategic roadmap, guiding Brand Positioning, Communications, Brand Extendibility and Metrics </li></ul></ul>Brand Essence Guides internal strategy; summary of the Brand Identity Core Identity Core values, key competencies. Associations that will remain consistent across product, markets and through time. Extended Identity Elements that provide texture and completeness; personality, organization, product characteristics
    15. 15. Virgin’s Brand Identity Brand Identity Essence of the Brand Irreverence Core Identity Elements Innovation Fun & Entertainment Value Service Quality Extended Identity Elements Underdog Personality Richard
    16. 16. Teradata’s Brand Identity To here From here... <ul><li>Data warehouse </li></ul><ul><li>Scalability </li></ul><ul><li>Big </li></ul><ul><li>Complex </li></ul><ul><li>Technical </li></ul><ul><li>Advanced </li></ul><ul><li>Wal-mart </li></ul><ul><li>Expensive </li></ul><ul><li>Confident </li></ul><ul><li>Geeky </li></ul><ul><li>Smart </li></ul><ul><li>Friendly </li></ul><ul><li>Team player </li></ul><ul><li>Where they were…and where they wanted to go…. </li></ul>Powerful Experienced Commitment to Excellence Personality Simplicity Single view Actionable Information Driving growth Better, faster decisions Symbol
    17. 17. 3. Create a clear and distinct Positioning <ul><li>Communicates the elements of the identity that resonate and are most credible with customers </li></ul><ul><li>Differentiates and demonstrates competitive advantage </li></ul><ul><ul><li>It is the foundation for all external communications </li></ul></ul><ul><li>Serves as the platform to move the brand along its path to the aspirational identity </li></ul><ul><li>Will evolve over time as the brand is able to deliver on elements of the Brand Identity and as customers’ needs change </li></ul>Four Fundamentals Of Brand Positioning
    18. 18. Benefits Hierarchy Most meaningful & most difficult to imitate, but hardest to deliver Easiest to deliver, but least meaningful & most easily imitated Functional Benefits Attributes Emotional & Self-Expressive Benefits The emotional & self-expressive benefits customers receive The functional benefits customers receive Features or processes that must be demonstrated to customers
    19. 19. Virgin’s Brand Positioning Extended Identity Elements Core Identity Elements Essence of the Brand <ul><li>Irreverence </li></ul><ul><li>Service Quality </li></ul><ul><li>Value </li></ul><ul><li>Fun </li></ul><ul><li>Innovation </li></ul><ul><li>Underdog </li></ul><ul><li>Exciting </li></ul><ul><li>New Rules </li></ul>Brand Identity Positioning A Personal Way to Flexibly Shop for Wines at a Great Value “ Wine Buying Like Never Before”
    20. 20. Case Study: Teradata Inputs Testing & Screening Recommended Identity & Positioning Brand Implementation Future Positioning Valued by customers Fit with Teradata Brand Statement Perceptions of Teradata’s ability to deliver Unique among competitors VALUE CREDIBILITY FIT UNIQUENESS Internal Management Interviews Customer & Prospect Interviews - Purchase criteria -Brand perceptions -Ideal experience Analyst Interviews Industry Research Partner/Alliance Interviews <ul><li>Internal Assimilation </li></ul><ul><li>Employee Workshops </li></ul><ul><li>Internal Communications </li></ul><ul><li>Metrics </li></ul>External Communications
    21. 21. A global Positioning statement can be tailored to support local needs USA Zippo’s Core Global Positioning Statement Zippo’s resilience, ruggedness, and dependability is legendary, and has earned it the continuing respect, confidence, and loyalty of its users. Combined with its classic design, American heritage, and individual sense of style, Zippo has become the quintessential brand for those who demand the perfect flame. GLOBAL Mexico Japan Germany <ul><li>Sporty and young-at-heart </li></ul><ul><li>Patriotic and respectful of American ideals, but not lost in nostalgia or sentimentalism </li></ul><ul><li>Cosmopolitan, fashionable </li></ul><ul><li>Socially active </li></ul><ul><li>Proud of, but not arrogant </li></ul><ul><li>Seeking and achieving success </li></ul><ul><li>Outdoorsy, rugged </li></ul><ul><li>Classic cool (e.g. James Dean) </li></ul><ul><li>Worldly, modern, contemporary </li></ul><ul><li>Rugged but friendly, outgoing and approachable </li></ul>
    22. 22. 4. Extend your brand strategically <ul><li>Is the extension consistent with your longer term brand vision and strategy? </li></ul><ul><li>Does the extension actually add value to your brand? </li></ul><ul><li>Will you be able to deliver on the branded customer experience? </li></ul><ul><li>Is the benefit consistent with your Positioning? </li></ul><ul><li>If this extension fails, will it be a major or minor setback for your brand? </li></ul><ul><li>Does the extension make sense for all regions? </li></ul>Brand Extendibility: Critical Questions to Ask
    23. 23. Stronger brands allow for more differentiated product line extensions Office (e.g., Scotch Tape) Transportation Safety (e.g., Reflective Coatings) Industrial (e.g. Abrasives) Health Care (e.g., Surgical Supplies) Beliefs and Values Benefits Attributes High Low Degree of Product Differentiation Level of Brand Meaning Example: Pioneering Innovative Technologies & Products
    24. 24. Brands with lower brand meaning cannot support much extension ?? Beliefs and Values Benefits Attributes High Low Degree of Product Differentiation Level of Brand Meaning Bottled Water Pure Water Example:
    25. 25. Knowing when to extend your brand… Sainsbury’s Bank Faster Chips The Blue Card Consulting X Box Successful Extensions
    26. 26. …and knowing when not to is a key driver of brand success Unsuccessful Extensions Mercedes C-Class Coke Clothes Wine Coolers Mouthwash
    27. 27. Brand extension ideas should be evaluated for fit in all regions USA GLOBAL Germany Japan Mexico GLOBAL Germany Japan Mexico USA USA GLOBAL Germany Japan Mexico USA GLOBAL Germany Japan Mexico Pocket Flashlight Sunglasses Camp Stove Lighter Wand Purchase Interest High Medium Low
    28. 28. 5. Build a strategic Brand Architecture <ul><li>The logical, strategic and relational structure for all of the brands in the organization’s brand portfolio </li></ul><ul><li>The objective is to maximize clarity , synergy and leverage to maximize customer value and internal efficiencies </li></ul><ul><li>Should clarify what role each of your brands and products play in different markets, and may result in a brand rationalization </li></ul>Brand Architecture is the organizing structure of a brand portfolio – David A. Aaker, Brand Leadership Master brand Subbrands Product brands
    29. 29. The Brand Architecture spectrum A Branded House uses a single Master Brand to span a set of offerings that operate only with descriptive offerings. A House of Brands consists of independent stand-alone brands, each maximizing its impact on the market with little connection to its parent. Significant investment in multiple Brands Build Brand Equity in Master Brand Maximize synergies among business units Target unique & separate customer base Reinforce comprehensive solution focus Key Issues Driving The Spectrum: Sub-Brands Stand-Alone Branded House House of Brands
    30. 30. A flexible architecture can be used to address local differences <ul><li>The Sony brand system uses the Sony brand in a variety of ways, in different markets, to target specific customers with unique value propositions </li></ul>Endorser Ingredient Driver Stand-Alone Corporate Play Station and Columbia Tri-Star are not visibly connected to Sony, but many consumers know about the link. This shadow endorsement provides positive associations, but allows the strong brands to stand on their own The ProAudio brand augments the Sony brand by communicating cutting edge technology across multiple Sony Electronics product lines Endorser brands usually represent organizations, rather than products, and provide credibility to the offering. Since the Sony brand is somewhat insulated from the product brand, poor performance of Metreon is unlikely to affect the Sony brand A driver brand has the primary responsibility for a purchase decision and owns the customer’s brand experience. Sony uses their master brand with a descriptive, “Pictures,” to drive the film division Sony chooses a flexible architecture and leverages their corporate brand in several different ways
    31. 31. Teradata’s Brand Architecture NCR brand is tied to cash registers and has limited credibility in DW space. Leading with NCR also limits the positive equities of the Teradata brand NCR Teradata Teradata as the driving brand with continued endorsement by the NCR brand leverages the positive equities of both brands Teradata A division of NCR Teradata The Teradata brand awareness is not broad enough to stand on its own
    32. 32. 6. Evaluate and align touchpoints to deliver <ul><li>Each touchpoint can reinforce or denigrate the brand, therefore the touchpoints must be evaluated and aligned to deliver the brand Positioning, and ultimately reach the desired Brand Identity </li></ul>Pre-Purchase Experience Post-Purchase Experience Purchase Experience Touchpoint Wheel Website Advertising Collateral Product/Service Assortment Point-of-Purchase Displays Sales Force Customer Service Billing Loyalty Programs Product Quality
    33. 33. Whirlpool’s Touchpoint Wheel Pre-Purchase Experience Post Purchase Experience Purchase Experience Influencing Touchpoints Influencing Touchpoints Influencing Touchpoints <ul><li>Print & TV Advertising </li></ul><ul><li>Coupons or Special Offers </li></ul><ul><li>Website </li></ul><ul><li>Viral Marketing </li></ul><ul><li>Direct Mail </li></ul><ul><li>New Product Launches </li></ul><ul><li>Public Relations </li></ul><ul><li>Consumer Reports </li></ul><ul><li>Marketing Speeches </li></ul><ul><li>Sponsorships </li></ul><ul><li>Home Builders, Contractors, Architects </li></ul><ul><ul><li>Partners like P&G </li></ul></ul><ul><ul><li>Whirlpool Customers </li></ul></ul><ul><li>Retail Partners </li></ul><ul><li>In-Store Displays </li></ul><ul><li>Sales Force </li></ul><ul><li>Financing Plans </li></ul><ul><li>Installation Technicians </li></ul><ul><li>Customer Service Agents </li></ul><ul><li>Customer Service Reps </li></ul><ul><li>Service Technicians </li></ul><ul><li>Inspired Cooking Class </li></ul><ul><li>Customer Satisfaction Survey </li></ul><ul><li>Bill </li></ul><ul><li>Community Work </li></ul>College/ MBA Recruiting Company Alumni Vendors/ Suppliers Analysts Annual Shareholder Meeting Annual Report Internal Newsletters Employees
    34. 34. 7. Consistently deliver on your Brand Contract <ul><li>A Brand Contract includes all the promises that the brand makes to its customers. Once you have identified and evaluated critical touchpoints, ensure that you have an action plan to deliver on your Brand Contract. </li></ul><ul><ul><li>Understand the specifics of the Brand Contract from your customers’ perspective . </li></ul></ul><ul><ul><li>Translate the specifics of the brand into product, service and delivery standards that employees can understand and technology can fulfill. </li></ul></ul><ul><ul><li>Fulfill the “positive” expectations of the Brand Contract to develop a more lasting, powerful brand . Uncover and address the “negative” expectations of the Brand Contract to improve and transform perceptions of the brand. </li></ul></ul><ul><ul><li>Uphold the Brand Contract or risk undermining the brand and losing trust from customers. </li></ul></ul><ul><ul><li>Deliver on the Brand Contract consistently through all touch points </li></ul></ul>
    35. 35. The result of NOT delivering on your Brand Contract Brand Contract <ul><li>Consistent, fast, friendly service </li></ul><ul><li>Reasonably priced </li></ul><ul><li>Fresh, tasty food </li></ul><ul><li>Family fun and safe </li></ul><ul><li>Enjoyable experience </li></ul><ul><li>High value </li></ul><ul><li>High quality </li></ul><ul><li>Wall Street Journal , July 16 th - cites a University of Michigan study on customer service that found McDonald’s ranked among the poorest-performers relative to customer satisfaction. </li></ul><ul><li>“ on any given day, 11 % of McDonald’s customers are dissatisfied with their visit” </li></ul><ul><li>Nearly 70% of the dissatisfied customers are further dissatisfied with the way their complaint was handled </li></ul><ul><li>Over half of all dissatisfied customers reduce their visits to McDonald’s and tell up to 10 others about their unsatisfactory experience. </li></ul><ul><li>The article quantified the financial losses tied to poor customer service as potentially costing McDonald’s $750 million annually. </li></ul>What do you expect from a visit at McDonald’s? What do you experience from a visit at McDonald’s?
    36. 36. 8. Practice effective global brand management <ul><li>A company’s primary goal should be global brand leadership, not a global brand </li></ul>Effective Global Brand Management Share Insights and Best Practices Across Countries Assign Responsibility for Cross-Country Synergy Execute Brilliant Brand-Building Programs Support a Global Brand Planning Process
    37. 37. Companies use different methods for encouraging sharing of best practices and brand insights <ul><ul><li>Holds a global meeting at its headquarters every quarter to spark internal community spirit, provide education regarding the direction of the company, and rally associates around the brand </li></ul></ul><ul><ul><li>Senior management prefaces internal newsletters and status reports with brand vision </li></ul></ul><ul><ul><li>Employees who demonstrate the company’s core values receive company-wide recognition through reward programs such as the highly acclaimed Chairman’s Award </li></ul></ul><ul><ul><li>Actively use intranet to share best practices </li></ul></ul><ul><ul><li>Provides complete “Brand Book” and “Brand Execution Guidelines” </li></ul></ul><ul><ul><li>Regular conferences </li></ul></ul><ul><ul><li>Global Brand Director frequently travels to educate, learn, and share </li></ul></ul><ul><ul><li>Bayer Self Testing Segment has an inconsistent global brand structure </li></ul></ul><ul><ul><li>Product oriented company; lacks umbrella brand </li></ul></ul><ul><ul><li>No senior management support; no internal communication </li></ul></ul><ul><ul><li>Brand does not tie its diabetes offerings together, resonate with consumers, or differentiate from competitors </li></ul></ul>
    38. 38. There are varying degrees of centralization of brand management Options for Global Brand Management 1. Single, Unified Global Brands & Positionings, w/ Regional Variances 2. Regional Brands w/ Common Umbrella Positionings, & Regional Autonomy 3. Distinct Global Brand Postionings, w/ Regional Brand Autonomy 4. Common Global Brand-Building Platforms (products, sales force, marcom), Distinct Brands by Price Point 5. Shared Brand Management Processes, Tools & Knowledge Management Examples
    39. 39. 9. Set the organization up for success <ul><li>Brand Metrics </li></ul><ul><li>Enable analysis and decision making </li></ul><ul><li>Track organizational progress </li></ul><ul><li>Internal Communications </li></ul><ul><li>Assimilate the brand strategy within the organization: </li></ul><ul><ul><li>Utilize a communications framework to increase support for the change </li></ul></ul><ul><ul><li>Select appropriate vehicles for communicating with and educating employees </li></ul></ul>
    40. 40. Track specific brand metrics ROBI Metrics ROBI SM Measurement Analysis Decision Making Benchmarking Diagnosing Allocating Resources Compensating Employees Informing Markets Setting Future Goals
    41. 41. There is only one kind of valuable brand metric – one that drives to a business action Business Action Touchpoint Metrics Metrics that diagnose the brand’s performance across the touchpoints of the brand-customer relationship. Metrics that diagnosis the brand’s impact on the business’ performance. Strategic Metrics (Impact)
    42. 42. The foundation for successful internal brand development is assimilating it into the culture <ul><li>As employee support for change increases, the intensity and the difficulty of activities intended to drive change also increases </li></ul>“ Believing It” “ Believing It” Contact Awareness Understanding Ready to Defend Ready to Promote Cultural “ Hearing It” Phase Phase “ Living It” Phase Acceptance Conceptual Superficial Emotional & Personal Personalize Contact Awareness Understanding Ready to Defend Ready to Promote Utilize & Internalize Cultural Experience Degree of Support for Change Time “ Hearing It” Phase Phase “ Living It” Employee Motivation and Morale Acceptance Conceptual Superficial Emotional & Personal Personalize Passionate Advocacy
    43. 43. A plan for implementing change enables a company to build a brand-based culture Develop Strategy Build a Foundation Implement Cultural Change <ul><li>Objectives: </li></ul><ul><li>Define Scope </li></ul><ul><li>Define Company’s Internal Audience Segmentation </li></ul><ul><li>Develop Internal Cultural Identity </li></ul><ul><li>Develop detailed 18-Month Assimilation Road Map </li></ul><ul><li>Create Success Metrics </li></ul><ul><li>Develop Materials for Workshops </li></ul><ul><li>Conduct Workshops and Train the Trainers </li></ul><ul><li>Identify Key Vehicles for Implementation </li></ul><ul><li>Prioritize and Schedule for Implementation </li></ul><ul><li>Assess need for comp system overhauls </li></ul><ul><li>Conduct Training/ Workshops with Employees in All Regions </li></ul><ul><li>Use Communications to Educate, Motivate and Internalize Brand </li></ul><ul><li>Monitor & Measure Effectiveness of Plan </li></ul><ul><li>Modify for Adjustment and Improvement </li></ul>
    44. 44. Nine ways to manage your brand as an asset <ul><li>Formally link business and brand strategy </li></ul><ul><li>Create a unique and relevant Brand Identity </li></ul><ul><li>Create a clear and distinct Positioning </li></ul><ul><li>Extend your brand strategically </li></ul><ul><li>Build a strategic Brand Architecture </li></ul><ul><li>Evaluate and align touchpoints </li></ul><ul><li>Consistently deliver on your Brand Contract </li></ul><ul><li>Practice effective global brand management </li></ul><ul><li>Set the organization up for success </li></ul>Managing Your Brand as an Asset
    45. 45. What Impact Does This Approach Have on Brand Asset Management? <ul><li>Management guidelines </li></ul><ul><li>Organizational alignment </li></ul><ul><li>Realized synergies </li></ul><ul><li>Experience based </li></ul><ul><li>Focused resources </li></ul><ul><li>Objectivity through measurement </li></ul><ul><li>Customer driven </li></ul><ul><li>Unique and valued brand </li></ul><ul><li>Stronger relationships </li></ul>
    46. 46. What Impact Does This Approach Have on Brand Asset Management? M anagement guidelines O rganizational alignment R ealized synergies E xperience based F ocused resources O bjectivity through measurement C ustomer driven U nique and valued brand S tronger relationships
    47. 47. BMA Southern California Chapter: Managing Your Brand as an Asset ANDREW FLYNN JULY 18, 2002
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