Leslie de Chernatony Mondragon Brand Seminar 2008


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Leslie de Chernatony Mondragon Brand Seminar 2008

  1. 1. Why are there not more valuable services brands? Leslie de Chernatony Professor of Brand Marketing Birmingham University Business School [email_address] May 2008 © Professor L de Chernatony, 2008
  2. 2. <ul><li>* Context </li></ul><ul><li>* Methodology </li></ul><ul><li>* Findings </li></ul><ul><li>* Conclusions </li></ul>The journey
  3. 3. Brands matter <ul><li>If a person invested $1,000 in August 1994 in the 111 strong brand companies, by December 2000 their investment would have </li></ul><ul><li>more than quadrupled to </li></ul><ul><li>$4,525 </li></ul><ul><li>$1,000 invested in overall stock market would have yielded $3,195 over same time </li></ul>Madden, Fehle and Fournier (2006) Journal of Academy of Marketing Science
  4. 4. What is my brand? Added value Identity – image Relationship Risk reducer Financial Visionary Promise Personality Emotion Values Self or culture Positioning Functionalism Integrated strategy Differentiation Logo Shorthand
  5. 5. Brand as promise A promise which is Distinctive Valued Consistently delivered Kept over time Source : Wolff Olins
  6. 6. Shifting brand paradigm Tangibles Values through communication Problems Services Successes Values through culture Co-created value Frozen value
  7. 7. Discontinuity : Build a Bear Workshop <ul><li>Monitor materials costing €5 </li></ul><ul><li>or </li></ul><ul><li>experience generating €45 </li></ul>Buy a shell, stuff it, give it a heart create its voice, stitch it, give it a lifestyle through accessories then create a community
  8. 9. Aligning brand-staff values Lush managers are independent, vivacious and dynamic- but we need more of them! Our store managers could be likened to our GODIVA shampoo and conditioning bars – ready to ride through the streets naked for their cause (although we’ve not asked them yet!). Our store managers must be confident and capable
  9. 10. Challenge of services brands Consumers Employees Services brand Corporation Image Experience Internal culture
  10. 11. Staff as brand builder Understanding High Low Low High Commitment Bystanders Champions Weak links Loose cannons
  11. 12. Interbrand Best Global Brands 2007 33% service 67% products 1 financial services brand with country of origin in the UK
  12. 13. Assessing brand success Facet Discounted future earnings Offers significant emotional and/or physical advantages Consumers’ feelings and behaviour Brands potential for growth Company value Corporate reputation Admired by peers Trust Method Interbrand Superbrands Millward Brown/WPP Brandz study Y&R BrandAsset Valuator FT Global 500 Report Fortune Management Today Reader’s Digest
  13. 14. Typical interviews CEO/MD HR Director Operations/ Customer Service Director Marketing Director Agencies “ Ultimate decider” Operations/ Customer Services Manager HR Manager Marketing Manager 3 customer services staff “ Key influencers” “ Enactors”
  14. 15. Brand characteristics Big idea Successful Less successful Supporting brand components
  15. 16. Brand is holistic experience <ul><li>* Consistency is part of succeeders mindset </li></ul><ul><li>* Consistency results from continually getting cross-functional teams to work together </li></ul><ul><li>* Consistency is a shared responsibility bridging internal and external </li></ul>
  16. 17. Brand as holistic experience Service brand Staff Communications Environment
  17. 18. Brand as holistic experience <ul><li>Touchpoints: </li></ul><ul><li>- pre-purchase </li></ul><ul><li>- purchase </li></ul><ul><li>- post-purchase </li></ul>
  18. 19. Staff are brand literate <ul><li>* Understand brand and implications for their job </li></ul><ul><li>* Short statements, resonating </li></ul><ul><li>* Brand essence isn’t advertising slogan </li></ul><ul><li>* Brand training </li></ul>
  19. 20. Internalising the brand Employees internalise Codified brand Comprehended brand Interpreted brand Brand ethos Employee belief and commitment threshold Corporate control
  20. 21. Different departments’ contributions MARKETING : Brand guardians - Define brand and supporting strategy - Internal liaison for coherent enactment - Align image with identity by monitoring gaps Brand HR : Brand enablers CUSTOMER SERVICE : Promise deliverers - Develop, implement and refine HR policies - Lubricate other departments’ processes to support the brand - Facilitate employee buy-in - Living exemplars - Behaviour to naturally enact brand - Pan-company interactions to support brand - Relationship builders recovering problems
  21. 22. Integrating departments’ support Facilitating Factors Impeding Factors Hygiene Factors: Interact * Meetings * Tactical HR processes * Technology * Hard work * Internal communications * Monitoring Brand-related factors: Collaborate * Importance of leader * Cross-functional teams * Special projects * Planning * Appropriate culture * Structure * Communications * Culture of internal tension and lack of inter-departmental cooperation
  22. 23. Excellent, personalised customer service Functional values Emotional values Promised experience +
  23. 24. Excellent, personalised customer service Core benefit Facilitating services Supporting services (Gronroos 2000) Brand
  24. 25. Excellent, personalised customer service Core benefit Facilitating services Supporting services Customer participation Accessibility Interactions (Gronroos 2000) Brand
  25. 26. Excellent, personalised customer service <ul><li>* Leads to stronger bonding </li></ul><ul><li>* Staff behaviour during interactions </li></ul><ul><li>- training and motivation </li></ul><ul><li>* Loose branding enables values driven personalisation </li></ul>
  26. 27. Responsive to change <ul><li>* Dynamic brands through openness to organisational learning </li></ul><ul><li>* Longevity of corporate brand as risk reducer versus staid slow responder </li></ul>
  27. 28. Conclusions <ul><li>* Is there a big idea? </li></ul><ul><li>* Mechanisms for holistic experience </li></ul><ul><li>* Moving towards brand ethos </li></ul><ul><li>* Integrating departments support </li></ul>