Brand Leadership - 5 Global Cases from the best brands By Dan Pankraz


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5 Global Case studies showing how the best brands create leadership in their categories. A youth marketing slant with some examples of brands who have gotten it wrong....and then recovered

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  • Brand Leadership - 5 Global Cases from the best brands By Dan Pankraz

    1. 2. <ul><li>YOUTH EXAMPLES </li></ul><ul><li>1. Nike SB (skateboard) </li></ul><ul><ul><li>Being authentic </li></ul></ul><ul><li>2. Red Bull vs. the followers </li></ul><ul><ul><li>Creating culture </li></ul></ul>Leadership Successes <ul><li>3 . Levi's vs. Diesel </li></ul><ul><ul><li>Ignoring reality </li></ul></ul><ul><li>4. Absolut vs. Grey Goose </li></ul><ul><ul><li>Resting on your laurels </li></ul></ul><ul><li>5. Burger King vs. itself </li></ul><ul><ul><li>Getting back to the core </li></ul></ul>Leadership Stumbles
    2. 3. <ul><li>LEADERSHIP </li></ul><ul><li>SUCCESS </li></ul><ul><li>STORIES </li></ul>
    3. 4. BEING AUTHENTIC Tapping into trendsetters
    4. 5. INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS BRAND CORE To maintain its leadership, Nike realised it had to do more than battle Adidas in the shops and on TV
    5. 6. INNOVATORS EARLY ADOPTERS EARLY MAJORITY LATE MAJORITY LAGGARDS BRAND CORE TREND- SETTING VANGUARD To get ahead of Adidas right from the starting line, Nike went into skating
    6. 7. <ul><li>“ The jocks who used to beat me up for skating wore Nikes. And now Nike wants in with skaters? Uh-uh. It’s not going to happen .” </li></ul><ul><li>-- Moish Brennan, skater, quoted in AdBusters </li></ul>To break into the insular skate culture Nike had to make a meaningful, credible contribution
    7. 8. <ul><li>Nike SB launched exclusively in hardcore skate-shops: skater-owned, skater-run </li></ul>Signalling a real commitment to skate culture Also keeping the brand out of the hands of poseurs
    8. 9. Top skaters were given signature lines to design Made the brand credible Gave consumers a taste of what it’s like to be their heroes
    9. 10. Generated buzz Increased premium credentials Other designs come from people like hipster artist Jeremy Fish and toymaker Kidrobot
    10. 11. Kept the brand consistently fresh and ahead of the curve Generated a sense of exclusivity All designs are limited editions: they’ve produced 150 SB Dunk editions in 5 years, none in mass quantities
    11. 12. <ul><li>Online community with over 200,000 active posts and hundreds of diehard fanatics </li></ul>Rewarded passion with insider access Fed the flames
    12. 13. <ul><li>When SB released an ultra-limited edition called the pigeon in 2005, sneakerheads actually rioted in their press to lay claim to a pair (which now go for $2000) </li></ul>Status symbols Cult-like devotion
    13. 15. A small brand with a big impact
    14. 16. <ul><li>When the competition heats up, get a head start and go to the source of leadership: trendsetting culture </li></ul><ul><li>To make an authentic contribution to this culture: </li></ul><ul><ul><li>Do not steal, mimic, or bastardize the culture </li></ul></ul><ul><ul><li>Do partner with credible people to create something new </li></ul></ul><ul><ul><li>Do not get greedy with volume – exclusivity is everything </li></ul></ul><ul><ul><li>Do reward the passionate few to keep them passionate </li></ul></ul>
    16. 18. <ul><li>Energy </li></ul><ul><li>Premium </li></ul><ul><li>Grown-up </li></ul><ul><li>International </li></ul><ul><li>Mysterious </li></ul><ul><li>Bad for you in a good way </li></ul>Ingredients
    17. 19. <ul><li>First, the big guys scrambled to get in on the game… </li></ul>
    18. 22. Red Bull refused to follow suit, as it’s not as credible – and wouldn’t create the distance they needed
    19. 23. Clubs: Energy to party all night Adventure (Felix Baumgartner Base jumper) Energy to go hard
    20. 24. <ul><li>Aspiring DJs are given an opportunity across continental and cultural boundaries to work with and learn from prominent music trendsetters </li></ul>
    21. 25. Every year, Red Bull throws a 24 hour party to encourage a diverse range of creative types to share their energy.
    22. 26. Why do people need energy at clubs? To dance. Red Bull has set up classes to teach street dancing.
    23. 27. The only competition like it in the world: A test of real-life wings
    24. 28. Really the only competition like it in the world. Do you have wings ?
    25. 29. Red Bull is committed to bringing fast, intense F1 racing to the States – but recognises that US audiences won’t pay attention until their country has a great driver. So Red Bull is creating that driver at their F1 school.
    26. 30. The final sporting frontier in America? Soccer. And Red Bull now owns one of the best teams in the country.
    27. 31. <ul><li>When the competition heats up, don’t fight them on the same turf – create your own turf: </li></ul><ul><ul><li>Contribute to the culture you live in </li></ul></ul><ul><ul><li>“ Walking the walk” to bring your comms promise to life </li></ul></ul><ul><ul><li>Creating a clean space to own </li></ul></ul>
    28. 32. <ul><li>LEADERSHIP </li></ul><ul><li>STUMBLES </li></ul>
    29. 34. <ul><li>Levi’s once created its category and led youth culture </li></ul><ul><li>It still maintains thought leadership – but its market dominance has been smashed </li></ul><ul><li>Because the reality of the brand no longer matches what the brand communicates… </li></ul><ul><li>… While the competition’s reality and image are synched </li></ul>
    30. 35. <ul><li>Levi’s invented jeans – and the meaning behind them </li></ul>A pioneering brand for rebels & iconoclasts: The embodiment of effortless cool
    31. 36. The same products that peaked in the 80s, aimed at the same (ageing) consumers
    32. 37. <ul><li>Consumers don’t want to buy jeans – they want to buy a lifestyle that expresses who they are </li></ul><ul><li>But Levi’s portfolio is limited: 85% of its sales come from jeans </li></ul>
    33. 38. How rebellious and cool is the experience of sorting through a giant mess at Sears or Bi-Lo?
    34. 39. Levi’s was communicating like a leader, but it wasn’t behaving like a leader in the world Bogan Dad jeans Bogan Mum jeans
    35. 40. <ul><li>Like Levi’s, Diesel has a strongly-defined brand </li></ul><ul><li>Unlike Levi’s, however, that brand is expressed and paid off at every touchpoint </li></ul>
    36. 41. Work that captures the spirit of the brand: Cheeky rebellion
    37. 42. Jeans with the same quirky, stylish touches as the ads that sell them
    38. 43. <ul><li>Tops </li></ul><ul><li>Outerwear </li></ul><ul><li>Shoes </li></ul><ul><li>Glasses </li></ul><ul><li>Jewelry </li></ul><ul><li>Watches </li></ul><ul><li>Bags </li></ul><ul><li>Even a hotel </li></ul>Diesel’s not just a denim brand: It’s a lifestyle brand
    39. 44. A brand that’s equally built on its hangtags and salesforce
    40. 45. Style lab may be a tiny business, but it creates a steady stream of ideas and excitement
    41. 46. Style lab may be a tiny business, but it creates a steady stream of ideas and excitement
    42. 47. The Heidies digital campaign organically positioned the brand as cutting edge
    43. 48. Diesel’s leadership in one area is amplified by its leadership in others
    44. 49. Diesel’s through-the-line integrity has turned like-minded consumers into evangelists
    45. 50. <ul><li>Ultimately, product really is king </li></ul><ul><ul><li>No matter how great your communications </li></ul></ul><ul><li>Leadership must be maintained at every consumer touchpoint </li></ul><ul><ul><li>Leadership in one place can’t compensate for lapses elsewhere </li></ul></ul><ul><li>Negative perceptions of your consumer can erode a youth brand as surely as negative brand perceptions </li></ul><ul><li>A well-integrated product portfolio is often more powerful than the sum of its parts </li></ul><ul><ul><li>Because it creates a badgeable lifestyle </li></ul></ul>
    46. 52. <ul><li>Absolut took a moribund category and injected it with fresh life </li></ul><ul><ul><li>Taking the lead on all fronts, from product design to communications </li></ul></ul><ul><li>It became part of pop culture – and then it became ubiquitous and coasted </li></ul><ul><li>And was ultimately overthrown by a competitive set that learned from the leader and topped it </li></ul>
    47. 53. The swill for alcoholic Russian peasants The cocktail of choice for urban sophisticates
    48. 54. Harsh, nearly toxic Pure
    49. 55. From the evil empire From the most attractive country in the world
    50. 56. Cheap, foreign & old-fashioned Premium, relevant & contemporary
    51. 57. The usual spirits clutter Absolut Breakthrough
    52. 58. Consumers collected the ads, made statements with them, and created their own
    53. 59. It activated lazily The campaign became tired & expected It failed to innovate first First Second
    54. 60. Absolut was everywhere – and that meant it was in places where it shouldn’t be, and in the hands of consumers who shouldn’t have it
    55. 61. One brand in particular rose to the challenge: Grey Goose
    56. 62. Instead, it attacked where Absolut was most vulnerable Uninspired Creative work
    57. 63. But the price difference made Grey Goose appear more premium $35 $28 Spirits experts acknowledge that all vodkas taste the same
    58. 64. In an image-driven category, who wouldn’t want to be seen drinking the best? A premium vodka must taste better, right?
    59. 65. No longer just top shelf, it was bottle service
    60. 66. Music Film series Publishing Golf TV
    61. 67. 25% volume growth year on year between 06-07
    62. 68. Once lost, leadership can be very difficult to regain
    63. 69. <ul><li>Complacency can undermine a leader as surely as a failure </li></ul><ul><ul><li>Winning formulas are ultimately just that: formulaic </li></ul></ul><ul><li>In fast moving categories, the leader has to move faster </li></ul><ul><li>A leader brand’s weaknesses in one area will be exploited by the competition </li></ul><ul><li>In image categories, ubiquity may drive short term sales, but it can be deadly in the long term </li></ul><ul><ul><li>Gatekeeping is vitally important </li></ul></ul>
    64. 71. <ul><li>Burger King is a classic rise & fall leadership story with the promise of redemption </li></ul><ul><ul><li>Its fall is an important cautionary tale </li></ul></ul><ul><ul><li>And its return helps us understand how to stay on track </li></ul></ul>
    65. 72. <ul><li>Teen target </li></ul><ul><li>Grilled burgers </li></ul><ul><li>Custom made </li></ul><ul><li>Cheeky attitude </li></ul><ul><li>Food-focused experience </li></ul><ul><li>Family target </li></ul><ul><li>Fried burgers </li></ul><ul><li>Pre-made </li></ul><ul><li>Kiddie attitude </li></ul><ul><li>Fun-focused experience </li></ul>Burger king McDonald’s vs. A successful #2 brand built on a compelling core
    66. 73. An explosion that proved difficult to control: A cancer of success 1982: 3,500 franchises Founded in 1954 1967: 247 franchises
    67. 74. Source: Burger King Case study, warc, 2005 Focus Focus Focus “ The brand had become schizophrenic with its targeting.” <ul><ul><li>“ The brand lacked a consistent personality and identity.” </li></ul></ul>“ Npd had become filled with products that lacked relevance to consumers.” “ The environment had become sterile and corporate, lacking any humanity or sense of fun.”
    68. 75. 1. 2. 3. 2001 1. 2. 3. 2002 +2% +11% -21% Source: BusinessWeek, warc
    69. 77. Burger King could have tried to reinvent itself once more to fit with the times… … Instead, however, the brand returned to its core
    70. 78. “ Superfans”: young men aged 18 – 34 who average 18% of customers but 49% of sales
    71. 79. Unapologetically bigger, juicier (and unhealthier) burgers
    72. 81. An in-store overhaul to connect in all the details “ Everything from the restaurants' signs to the employee uniforms…. All those things are branded experiences, and are being reworked.&quot; – Alex Bogusky
    73. 82. “ When McDonald's tries to get hip, they show us kids playing basketball on rollerblades. BK's stuff is just far more subversive – [which] its cynical consumers appreciate.” -- Slate.Com Work that’s not afraid to polarise in order to engage with its target
    74. 85. <ul><li>Burger king spoofs on youtube </li></ul><ul><li>King character on myspace with 10,000+ friends </li></ul><ul><li>Family guy poked fun at subservient chicken </li></ul>
    75. 86. Rev (millions) Source: warc 1. 2. 3.
    76. 87. <ul><li>The cancer of success: a leader brand can lose its way during periods of rapid growth </li></ul><ul><ul><li>When it’s easy to lose sight of the core that sparked that growth </li></ul></ul><ul><li>A leader cannot be all things to all people: it must focus and sacrifice </li></ul><ul><ul><li>Play to your strengths; don’t try to be something you’re not </li></ul></ul><ul><li>Every touchpoint matters </li></ul><ul><ul><li>Burger King’s ads wouldn’t matter if the in-store experience hadn’t also been turned around </li></ul></ul>