Make your Brands Make a Difference by RI

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Make your Brands Make a Difference by RI

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Make your Brands Make a Difference by RI

  1. 1. Make your brandsmake a difference© Research International 2002
  2. 2. Linking people and brands People BrandsPeople BrandsShare needs, values Share qualities withand aspirations, but all competitors, but withunique individuals unique individual variations 2
  3. 3. Linking people and brands: our branding expertise Needs Architecture People Values Brands Equity Aspirations Positioning Consumer understanding Branding Brand 3 strength
  4. 4. Linking people and brands: what we add Communication, Customer relationships Channel management Needs Architecture People Values Brands Equity Aspirations PositioningConsumer understanding Branding Innovation Innovation Brand 4 strength
  5. 5. Linking people and brandsPeople 5
  6. 6. Different consumption patterns 6
  7. 7. The consumers’ worldTimepoorcashrichJadedUnpredictableCrampedDemandingHardtofindTimepoorcashrichJadedUnpredictableCrampedDemandingHardtofind 7
  8. 8. Different channels 8
  9. 9. BrandsBrands 9
  10. 10. Increasing choice 10
  11. 11. Why invest in branding? Nestlé bought Perrier for ten times its financial value Absolut Vodka grew sales by 1750% in eight years* 61% of Coca-Cola’s stockmarket valuation is its brand value** 50% of the top 100 UK Consumer brands are over 40 years old Great brands attract great employees * Brand Equity and Advertising, Aaker and Biel ** Interbrand/Citibank 2001 11
  12. 12. Linking people and brands for better performance Share Needs Equity Profit Values Edge Return on Hopes Loyalty investment People Brand Results strength 12
  13. 13. What are the issues? Getting global, getting local Fewer, bigger brands The right channels, the right messages Extending and stretching Brand architecture Brand confusion Build and maintain the emotional difference Connect with your customers 13
  14. 14. From the outer to the inner brand Brand in the society Brand in the society Brand in the market Brand in the portfolio Brand in the market Functional descriptors Brand in thebenefits Functional portfolio Emotional benefits Functional descriptors Personality Functionaltheportfolio Brand in thebenefits Brand inSpiritbenefits Functional society Emotional market Personality descriptors Spirit Functional benefits Emotional benefits Personality Spirit 14
  15. 15. Two critical measures Familiarity Awareness combined with knowledge of the brand Equity A single quantified measure of the overall strength of a brand in terms of its emotional and functional benefits as perceived by the consumer 15
  16. 16. Familiarity relates to market shareIndexedmarketshare Familiarity 16
  17. 17. Equity is a single measure of brand strength Market average Compaq 112 Dell 111 Gateway 105 IBM 105 Tiny 95Hewlett-Packard 95 Packard Bell 94 Apple Mac 72 Source: Research International database UK home PC market, 17
  18. 18. How we measure equity Emotional AuthorityIdentification Affinity Approval Equity Product Performance Service Physical 18
  19. 19. The elements of equity: Affinity A framework for understanding the emotional and intangible benefits of a brand Authority Identification Affinity Approval 19
  20. 20. Affinity: authorityHeritage TrustInnovation Authority Identification Affinity Approval 20
  21. 21. Authority: heritage, trust, innovation 21
  22. 22. Affinity: identificationBonding Authority Caring Identification AffinityNostalgia Approval 22
  23. 23. Identification: bonding, caring, nostalgia 23
  24. 24. Affinity: approval Authority Identification Affinity Approval PrestigeAcceptabilityEndorsement 24
  25. 25. Approval: prestige, acceptability, endorsement 25
  26. 26. Understand your market Heritage 6% Trust 8% Innovation 4% Bonding Authority 12% 18% Caring Identification Affinity 8% 26% 68% Nostalgia Approval 6% 24% Equity Prestige 7%Acceptability Performance 7% 32%Endorsement 10% Source: Research International case study, French retail market 26
  27. 27. Some markets are more driven by affinity...100% Performance50% 0% Affinity Source: Research International Database 27
  28. 28. How we relate Equity to growth The Equity Enginesm model allows us to understand the drivers of brand strength in any market We can now use this to understand how equity relates to future brand performance 28
  29. 29. Familiarity can lead to different levels of equity Brand equity Familiarity Source: Research International Equity Enginesm database 29
  30. 30. Brand EdgesmBrandequity Familiarity Source: Research International Equity Enginesm database 30
  31. 31. Brand Edgesm + edgeBrandequity - edge Familiarity Source: Research International Equity Enginesm database 31
  32. 32. Edge relates to gain or loss of market share + edge57% Gain39%4% 4% 52% Loss 44% - edge Source: Research International Equity Enginesm database 32
  33. 33. Character matters“The extent to which the brand has a distinctivenature - standing for something” 33
  34. 34. High character brands usually have high Edgesm Heritage Heritage Endorsement Trust Endorsement TrustAcceptability Innovation Acceptability Innovation Prestige Caring Prestige Caring Nostalgia Bonding Nostalgia Bonding Brand with high character Brand with low character Brand equity 135 Brand equity 132 Brand edge +18 Brand edge -3 Source: Research International Equity Enginesm database 34
  35. 35. Understanding the brand from top to bottomSummarisation Measures total performance of brand Equity on key indicators Engine sm BrandSight Pre-validated modules Gallery sm for measuring brand Needs & Values personality, plus benefits, Inventory needs & values Customised model for Locator sm measuring contribution Detailed of other factors, e.g. diagnosis detailed execution 35
  36. 36. A framework for brand personality: BrandSight Gallerysm Sincerity Excitement Competence Sophistication RuggednessDown to Daring Reliable Upper class Outdoorsyearth Spirited Intelligent Charming ToughHonest Imaginative SeriousGenuine Up-to-dateCheerful Source: Jennifer Aaker, JMR August 1997 36
  37. 37. A framework for understanding core values: BrandSight Gallerysm Earth Water Air Fire
  38. 38. What are the issues? Getting global, getting local Fewer, bigger brands The right channels, the right messages Extending and stretching Brand architecture Build and maintain the emotional difference Fight brand confusion Connect with your customers 38
  39. 39. Your issues? Tailor this page for your client [see notes] 39
  40. 40. Why Research International Strong team Unparalleled knowledge: database of over 2,500 brands from projects in over 60 countries in Predictive branding tools Link branding with: communication broader marketing and commercial issues sector expertise in-depth understanding of consumers and innovation 40
  41. 41. Build the long term value of your brandsA price advantage can be undercut,a product advantage can be outflanked…but an emotional difference can commanda premium forever“In an increasingly crowded market place, foolswill compete on price. Winners will find a way tocreate lasting value in the customer’s mind ” Tom Peters 41

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