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Brand  To  The  Bone  B I Z
 

Brand To The Bone B I Z

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    Brand  To  The  Bone  B I Z Brand To The Bone B I Z Presentation Transcript

    •  
    • Brand To The Bone Growing Small Business Into Big Brands AUTHOR: Jack Sims PUBLISHER: Palm Breeze, Miami, Florida DATE OF PUBLICATION: 2002 NUMBER OF PAGES: 160 pages Book pic
      • A successful marketing consultant and branding specialist shares his expertise and experience on ways to develop and grow a small business into a big brand.
        • This is a “must” read book for those who want their products or services to become the brand leader in their category.
        • The author gives easy-to-do pointers that serve as keys to improving the company’s bottom line, thus creating brand equity and incremental shareholder value in the long term.
      • Embracing the philosophy that customer is the heart of any business
        • the author talks about building relationship and partnership with customers for a lifetime by applying his own version of CRM (Customers Really Matter), and in the process, experience tremendous and lasting growth.
      THE BIG IDEA
    • How do you want to grow your sales from a $2.5M to $30M?
      • This is not fiction, this is a real story!
        • Ask Durasol Awning, a retractable–awning manufacturer, and they will tell you that marketing and branding are significant reasons for its growth and success.
        • It is really about developing a brand and a brand name, and a point of difference to set the brand apart that counts.
        • There are so many brands in the market, how will your brand be noticed if you are in a “me too” category?
      • Defining branding is like defining love.
        • One can define it in his mind, but it may not match other people’s idea of what it is.
      • Branding may mean different things to different people.
      • Branding should be done with a passion .
        • There are no other rules.
      What is Branding?
      • It means that your brand is not just the logo at the top of your letterhead or your packaging.
      • It is much deeper than that. It’s what your product stands for and the feeling it imparts to everyone who touches the product.
      • Your brand identity should go all the way through everything that your company touches, every person who works in the company, and right on down to the consumer and your suppliers.
      • Everyone who works with you, and everyone they talk to, they all represent the brand - they are the brand!
      What does “brand to the bone” mean?
    • Why should you want to build your brand?
      • The most relevant reason is the positive effect on the company’s bottom line, thus increasing the shareholder value.
        • The second important thing is the value of brand equity.
        • In the U.K., brand equity is looked in a much favorable light than in the U.S.
        • Companies in the U.K. have even gone to include brand equity as an asset on their books.
        • In the U.S., the brand equity in the form of “goodwill” is addressed only when the company is being sold.
      • A strong brand can protect a business against competitive attacks, market fluctuations, and price wars.
        • A brand leader has an edge over its competition in terms of premium price positioning .
    • Do you have Brand Commitment Statement?
      • Brand commitment statement is just putting into words what you want your brand to mean to your company, the people in it, and the people who buy your products.
        • Everyone in the organization should know what the company stands for.
        • It is very important that everyone gets involved in the process of developing the winning statement.
      • Having the right people in the organization is very important in bringing the brand message across consistently.
        • Make sure that you hire talented people who will enhance and grow your company.
    • The Branding Wheel Concept
      • 4 Points that form the outer part of the Branding Wheel Concept
        • Promise . As a manufacturer of goods or service provider, you make a branding promise to your customers to deliver products or service to a level of accepted standard of quality.
      Sspassion Brand Expectation Share of Mind Promise Share of Wallet passion people placement product promotion
    • The Branding Wheel Concept
        • Expectation . Customers have expectation on the performance of the product based on the promises made by the manufacturer or seller. This expectation should meet or even exceed the promised quality, value, standards and attributes of the product.
        • Bigger Share of the Customer’s Mind . Brands are feelings, thus emotional. The objective should be to connect creatively with the emotions of the customers, then stir to occupy bigger share in the mind of the consumer that customers automatically think about your brand when buying product in the category you are competing in.
        • Bigger Share of the Customer’s Wallet . Branding and creating awareness in the mind of consumers should result in bigger share of the dollars spending in your category.
      • Product : Variety, quality, design, features, brand name, packaging, sizes, services, warranties, returns, research
      • Placement : Distribution, locations, stores, transportation, production facilities
      • Promotion : Essence, image, advertising, sales promotion, direct mail, public relations, sales force, marketing, outdoor advertising, and Internet advertising
      • People : Employees, dealers, end users, vendors, friends, and the rest of the world
      • Passion : The passion about the brand should start at the top down to every employee of the corporation
      Total Branding –The 5P’s
      • Develop a plan and goal for the company and for each product.
        • Be a dreamer! Aim high, reach for the stars! Plan, plan and plan!
      • Decide on the product category you want to compete in.
      • Produce a product that will compete with, and beat, the market. Remember that perception is reality
      • Determine who your real customers are.
      • Decide who will take responsibility for the brand.
      • Create the brand name, graphic image, positioning statement (or tag line), and trademarks.
      16 Steps to Launch a Brand
      • Develop the brand strategy, objectives, and positioning. Keep it simple. Bear in mind that customers are the most important components of the company. Thus, brand strategy should start with the customer; it’s what he or she thinks and feels, not what you think.
      • Decide on the mood, tone, and image that you want the brand to have.
      • Conduct research to ensure that the creative approach achieves the image with the target audience.
      • Develop a marketing plan that will achieve the brand objectives.
        • Start with the idea.
        • Get to know the product.
        • Craft a Vision Statement.
      16 Steps to Launch a Brand
        • Look around and see who else is offering the product or service, do competitive analysis.
        • Talk to as many people as you can – consumers, retailers, analysts, and manufacturers – listen to what they say.
        • Develop a Business Strategy.
        • Determine the real size of the market by doing Market Analysis.
      • Outline of a Business Plan
        • What is the business concept
        • Assumptions used in business plan
        • Objective of the business
        • Organizational objectives
        • Outline the current condition: Market size and growth projections.
        • Target market
        • Product or service strategy
      16 Steps to Launch a Brand
        • Operations
        • Resources required to provide the product or service
        • Promotions strategy
        • Partnership strategy
        • Sales strategy
        • Retail: when do you expect to be in retail? How many accounts? How many counters? Pricing and margins? Retail development strategy?
        • Cost of sales assumptions
        • Financials: profit and loss, balance sheet, monthly sales forecast, monthly retail account build, expenses
      • Decide on outside sources for advertising, promotion, public relations, packaging, product design, direct agencies – then make sure they are all team players, clearly understanding that the brand must be the star!
      • Create the advertising, communication, and promotional plans for all of the links in the sales chain.
      16 Steps to Launch a Brand
      • Create a look that will be consistent across all communications and last a lifetime.
      • Produce all of the materials, including packaging, advertising, promotions, public relations, direct mail, and the rest, to support the individual communication plans.
      • Get support from all the people who touch your brand – your sales and internal personnel as well as your customers.
      • Develop a customer-centric organization.
        • The customers are the single most important part of your company, and everyone has to get on board the “customer first” concept.
      16 Steps to Launch a Brand
    • Identifying Your Target Audience How well do you know your customers? Do you really know who they are?
      • There is a need to do research to find out who the best business prospects for your brand are and how you can reach them.
      • There are accepted demographics of the target audience, and promotions are designed based on these information.
        • You have to know who the individual customer is, and certainly what their traits are.
      • Start by looking at the biggest group of potential customers and analyze the profile of each customer.
        • Get down to the LCD (lowest common denominator): the individual customer.
      • Do market segmentation.
        • This process is used to sort who the target audience might be.
        • It helps to identify the target audience down to a segment of one – the individual.
        • Take Amazon.com, who aims to identify every single visitor.
    • How to improve performance of the brand?
      • Think like a customer .
        • Always put yourself in the consumer’s situation.
        • It’s not what you want, but what the customers’ want that matters.
        • This philosophy will surely help in making your advertising and marketing efforts work marvels for you.
      • Talk to consumers in small groups – if possible, on a one-on-one basis .
        • This will give you more and better information as to the things that drive a customer to choose and purchase your brand.
      • Remember to put every bit of research available into use .
        • Talking to customers and listening to them helps substantially in developing marketing plans that will impact the customers and consequently increase business with them.
    • How do you know if your brand is on track?
      • Questions to ask yourself to evaluate if your brand is on track; answer on a scale of 1 to 10. Keep your answers, then revisit the same test 6 months from now and compare the answers to assess whether there is improvement.
        • Can you describe your brand in a few words?
        • How many in your potential target audience have any awareness of your product category and your brand specifically?
        • When consumers shop the category, is your brand the brand purchased most often?
        • Are your brand’s claims defensible, or can they be challenged?
        • Can your customers easily identify your brand from the competition in your marketplace?
    • How do you know if your brand is on track?
        • Will customers pay what you think your product is worth? Will they pay a premium price for your brand?
        • Is your brand timeless? Are there claims or time-specific elements in your brand name that could affect the longevity?
        • Does the brand really deliver the benefits your customers are looking for?
        • Is your product or service relevant in today’s marketplace; is the category in a growth or declining phase?
        • Are you communicating your brand’s image with consistent and multiple quality impressions?
        • Does your brand have a better position (e.g., premium) in consumers’ minds than your competitors’ brands do?
        • Is your brand delivering a consistent image across all communications?
    • How do you know if your brand is on track?
        • Are you making sure that the brand is being featured in all of the media that is effective in reaching your target audience?
        • How well do you know who your customers are? Do you know what they like and don’t like? Do you know what they look like and what motivates them?
        • Do you audit your marketing programs to ensure their efficiency?
      • Grow your brand “sensibly”!
        • Visual medium is not the only way to understand about brand, there are 4 other senses to maximize – touch, sound, taste, and smell.
    • 16 Branding Musts
      • The brand identity is how you would like the brand to be perceived, but only the customer’s image of your brand is real, and that’s the only one that counts.
      • Keep your brand focused; don’t try to be all things to all people.
      • Shoemaker, stick to your last.
      • Dollar-cost average your brand.
      • When you’re starting out, think “street smart”.
      • When you have a big ad budget, follow the advice in #5.
      • Write a set of brand guidelines.
      • Appoint a guardian of the brand.
      • Make your logo easy to read.
    • 16 Branding Musts
      • Stick with your advertising. You’ll get tired of it before 10% of your customers have seen it.
      • Make a claim you can own.
      • If you are #1, then say so!
      • Sell quality.
      • Use borrowed equity wisely.
      • Monitor your brand.
      • Spend an inordinate amount of time with your customers.
    • Customer Relationship Management (CRM)
      • CRM is about building relationship and partnership with customers to keep them for life through a transfer of trust between the customer and the supplier.
      • The 4 P’s of CRM
        • Planning. It is a must to know where you want to go, so develop short and long term plans.
        • People . CRM requires teamwork, thus, everyone in the organization should be involved and committed to making it work.
        • Process . Take time and effort to identify your CRM process. This includes the steps of how your customers contract your company, the way you process information you collect and how it is used to revisit customers repeatedly.
      CUSTOMERS REALLY MATTER
    • Customer Relationship Management (CRM)
        • Platform. This is the choice of technology you are going to use including the software and Web integration that works both for you and your customers.
      • CUSTOMERS FIRST!
        • This should be your mantra. One thing you can simply cannot do without are your customers!
      • Interesting Statistics
        • It takes 7 times as much time, effort and money to get a new customer as it would to retain the old one.
        • For every customer who complains about your company, there are about 8 to 10 people who didn’t tell you their real feelings.
      • The first steps to consider in growing your customer numbers and developing the relationships that will positively affect the bottom line.
        • Step 1 .
          • Produce a list of all of your customers and rank them in order of sales, the largest customer ranking at #1 down to the smallest.
          • This is your customer base. There are several available computer programs that you can use.
        • Step 2 .
          • Segment these customers into 4 groups or blocks: A, B, C, and D, where A customers are the best ones as they buy from you most frequently.
      • Isn’t it nice to make all your customers in the A group?
        • The good news is this: CRM is about making all your customers into A’s.
      Customer Relationship Management (CRM)
      • Build a profile of you’re A customers highlighting their attributes and lifestyles.
        • This can be done through spending time with them, like eating out and going to a ball game with them.
        • Once the lowest common denominator (LCD), then you can write down what makes an A customer.
        • It is easier now to focus on the A customers as your target.
      Customer Relationship Management (CRM)
    • The 4 Basic Customer Blocks
      • Block A customers :
        • The best and largest customers in terms of sales, they buy more frequently than other groups.
        • You have an intimate working relationship with these customers and, these customers are usually your friends.
        • This block represents about 1% to 2% of the total customers.
      • Block B customers :
        • They buy products regularly although not as frequently as the A block.
        • Their purchases are not as large, but there is potential to move some of them to A customers when given some extra efforts and attention.
        • These are people who believed you have helped grow their businesses, as opposed to just trying to sell them more.
        • This group represents about 4% to 5% of the customer base.
    • The 4 Basic Customer Blocks
      • Block C customers :
        • This is a mixed group. Some of them may be new and some may have been with you for a long time and may be just jogging along.
        • They are good clients, but make no real move to become B customers.
        • They are around 15% of the customer base. Being a relatively big part of the entire customer base makes them an important group.
      • Block D customers :
        • This represents about 80% of the customer base and constitutes the largest group.
        • They do only small business with you, but they take a big amount of your time, efforts, money and other resources to serve.
        • They are still customers. This block has to be handled in special way; you may have to make hard decisions about them.
    • The 4 Basic Customer Blocks
        • You should take a look at their upside potential. What will take them to become C, B, or even A customers?
      • Compare each building block’s proportional profit.
        • By using a customer-based accounting technique, get factual information of how the customers are performing.
        • It may be shocking to know that only the top 20% of the total customer base provides 100% profits of the company, while a lot of customers are actually costing money to do business with.
      • THE SAD NEWS IS THAT YOU MAY HAVE TO “FIRE”
      • SOME CUSTOMERS.
      • Produce an analysis of each and every D customer to determine what the upside potential is.
        • Then, decide if you want to continue doing business with that particular company.
      • The objective of CRM is to move customers up the building blocks.
        • If you can move only 1% of your total customers up the building blocks, you can look for performance improvement of around 15% to the bottom line.
      • The 4 building blocks can be extended up to 3 more:
        • Block E will be for ex-customers,
        • Block F for future customers and identified as potential patrons.
        • Block G as the greater majority, simply the rest of the category your products are marketed in.
        • These blocks may well fit into one or all 4 of the building blocks A, B, C, or D.
      • Put the maximum amount of effort to get new A customers.
        • You surely can’t get all customers to become A customers, but you should try to get them to be your B customers, at least.
      The 4 Basic Customer Blocks
      • Another benefit of a CRM program is that it will make you put a value on the “lifetime value” of your customers. Estimate the average lifetime that your customers stay with your company.
      • Assume normal average stay of customer: 7 years
      All customers are not equal.
      • Now, who said that all customers are equal?
        • Getting the lifetime value of the customers helps you to make an informed decision on what direction to go.
        • Make sure that you are building relationship with your customers who can remain as your partners in business for a lifetime.
      14,000 2,000 D 140,000 20,000 C 420,000 60,000 B 700,000 100,000 A 7-year Spending Estimate, $ Assumed Annual Spending, $ Group Category
    • All customers are not equal.
        • Work with these customers to help them grow their businesses. You got to want your customers to grow, make more money and buy more from you.
      • Are your customers satisfied?
        • Find out from your customers if they are happy with your company, the quality of the product, its level of service, attitude of employees, etc.
        • This is how you can move your customers up the building blocks.
    • Creating a Promotion that Will Grow Your Brand
      • The Nestle Butterfinger brand had gained 51% of sales during the promotional period and managed to get featured in 47 trade and consumer magazines. How was it done?
      • Promotion Development Process
        • The Brief .
          • Development of every program starts with a well written brief.
          • The brief provides background information about the product, the competition, market dynamics, and retail class of trade.
          • The brief helps to assess whether a promotion is needed to address the current issues or opportunities.
        • Brainstorm Brief .
          • The brief is distributed prior to brainstorm to allow the participants an opportunity to come with ideas.
    • Creating a Promotion that Will Grow Your Brand
        • The Brainstorm .
          • The best brainstorm happens when people with differences are put together.
          • THERE ARE NO BAD IDEAS IN A BRAINSTORM!
        • Concept Development .
          • Don’t look for “the big idea” at the brainstorm.
          • A smaller group usually reviews and selects the ideas for further development.
        • The Creative Execution .
          • This should provide the creative team (usually consists of a writer and art director) with the specifics for all the elements needed to bring the promotion to life.
        • Production .
          • Get a good production manager or a printer who can be trusted.
          • This is the phase where most problems can occur.
    • Creating a Promotion that Will Grow Your Brand
        • The Sell-in to the trade .
          • Excite the sales force, who in turn must excite the retailer.
        • Execution .
          • Take control of the promotion yourself. Do your own spot checks. Visit the stores and participate as a consumer. Fix any flaws at once.
        • Evaluation .
          • Get as much feedback as you can to evaluate its effect on meeting the objectives set during the planning stage. Revise the program as necessary.
    • BusinessSummaries.com is a business book Summaries service. Every week, it sends out to subscribers a 9- to 12-page summary of a best-selling business book chosen from among the hundreds of books printed out in the United States. For more information, please go to http://www.bizsum.com. ABOUT BUSINESSSUMMARIES