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Little creatures presentation


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Little creatures presentation on Strategic Brand Management

Little creatures presentation on Strategic Brand Management

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  • Little Creatures founded by Phil Sexton, Nic Trimboli and Howard Cearns in Western Australia due to the recognition of a trend in the craft brewery industry and a decision to build a brewery where beer with their own spin is created and a wine mentality is integrated.   During the 08-09 financial period the company recorded $4.5m profit, compared with $34m in sales during 2007-2008, that ’ s 40% increase in revenue. (Little World Beverages Ltd., 2008). T otal marketing budget during 2008-2009 of $40,000 was made up of minimal advertising and marketing promotion. (Roy Morgan Research Pty. Ltd.). The uniqueness of the brand Little Creatures has built and continues to build an extremely loyal customer base.  
  • The above model is a practical model that can be used in a systematic way (which is outlined following) to: Clearly defining the brand vision incorporating three key components – 1. Envisioned Future; 2. Brand Purpose; 3. Brand values. Identify the importance of organizational culture in enacting the brand promise (which is outlined in the Brand Essence stage). This stage also highlights practical workshops to unearth key indicators of a ‘helping’ or ‘hindering’ culture through internalized assumptions & employee values with the aim of aligning employee values to brand values. Link Brand Objectives to the vision & purpose of the brand. A model for ‘rolling back the future’ into specific short term objectives is identified. The ‘market cube’ helps identify market opportunities (segments) to focus on to achieve the stretching future. Diagnose, analyze and summarize the market forces impacting the brand development and the achievement of the vision. This process is completed via the Brandsphere audit looking at; Inside the Corporation – operational and strategic effectiveness; the value chain; culture:vision gaps etc Distributors, Subsidiaries, and other intermediary channels impacting the delivery of the brand promise Competitive set – key competitors, strategic assesment of brand identities using Brand Prisms; key brand values projected to the market End-user – assessing industry, category specific buying behavior; category & segmentation values linked to brand values etc. Macro environment - economic, political, legal, social Collate and simplying the brand analysis into a ‘core nature and purpose’ of the brand that can be understood clearly internally and manifest into an external positioning for functional values and a personality understood by consumers to enable the brand to deliver the emotional promises linked to consumer values.
  • VALUES: Must be aligned to target consumers values: Eg. Values drive Behavior / State of Existence (situational dependant) which drives Brand Choice leads to Brand Development. Must understand the situational values most appropriate to the consumer within the segment / category (ascertain by Marketing Research): Functional Value – satisfying values based on function eg. Easy to hit for Big Bertha Social Value – value satisfied in social situations eg. “What ball do you use? – ProV”. Emotional Value – what emotional state of existence consumers have with a brand eg “I feel proud to play better” Epistemic Value – the value consumers place on trying something new. Eg “I try all the latest technology”
  • The 5 Why’s method is used to unearth underlying assumptions about the brand to identifying a united purpose.
  • The 5 Why’s method is used to unearth underlying assumptions about the brand to identifying a united purpose.
  • Brand Values must reinforce the brand purpose. Since values drive behavior, Brand Values must drive the brands behaviour. The key is to align staff values with brand values by staff endorsing the brands values. Brand Values must NOT be dictated to by Senior Management in order to gain ‘buy-in’ by lower level, customer-facing staff. The ‘espoused values’ must be aligned to ‘actual values’ to ensure consistency.
  • Understanding competition’s brand values and the key messages that are sent via communication, will help form a differentiation strategy. Some category values must not be ignored as customers will expect these from all brands eg technology & performance
  • Understanding the consumer segments and the key values that drive brand consumption is critical. Only qualitative & quantitative research can provide deep, rich information about consumer values.
  • The first and foremost impression one gets from Little Creatures' culture is FUN No visible sub-cultures visible as the organisation is local and small It is evident from the data and customer reviews, that the people and the company work hard to keep up to their promise of providing great quality beer and friendly atmosphere.
  • The employees are committed to the work, service and the Company (This can only be judged by the performance and attitude of the employee towards the company and customers) There is a regulatory mechanism in place for attitudes and behaviour The employees understand what is the core to the brand and are able to talk with passion about their locally produced product (The employees are the face of the company) Since there is evidence of group culture, the employees do not place unconstrained demands of themselves which might act as a barrier to adaptations and changes in the organisation The company is able to meet the expectations generated by the uniqueness of the brand and its functionality
  • Understanding the consumer segments and the key values that drive brand consumption is critical. Only qualitative & quantitative research can provide deep, rich information about consumer values.
  • Vision – to make great beer and great communities- the assumptions that under pin the organisation and its people are highly aligned with the artefacts that surround the environment, such as the logo representing love and innocence and an assumption that people respect you in you are caring and kind – leading to the vision of wanting to better the community.
  • The long term and short term objectives MUST be linked to the Brand Vision (which is established through stage one of the brand building process).
  • Vision: TO MAKE DRINKING BEER: THE FORUM FOR IMPROVING SOCIAL RESPONSIBILITY, THE CATYLIST FOR HALTHY ENVRONNMENTAL CHANGE, THE FOUNTAIN OF LOVING COMMUNITY SUPPORT, THE LUBRICANT OF POSITIVE SOCIAL INTERACTION AND THE PILAR OF RESPONSIBLE ENJOYMENT. Forecasted for a 20% increase in profit year on year for the next 3 years – strong objectives, however we believe based on our strong performance over the past 5 years this is achievable.
  • Audit the Brandshphere is comprehensive and often presented in a detailed Marketing / Business Plan. Rating System: Each ‘Force’ is analyzed and given an overall rating of either 1 (enhancing) or 0 (impeding) to force management to look at the critical aspects of each Force not the detail.
  • Each activity under the 5 Forces is detailed but captures the critical elements for the Force to work for you or against you. The rating system of either 0 or 1 is important to ensure major focus.
  • Brand Essence is critical in devising key Marketing Mix programs since it’s the personality traits that can manifest externally into: Brand Identity Brand Positioning Since the brand values must be aligned to consumer values, the personality of the brand should resonate with targeted consumer segments who will relate to personality traits they align to themselves – eg projection of desired self. The brand personality must be aspirational and altar-ego related.
  • At the personality level is where key Brand communication is drawn through key subliminal messages.
  • Fixing this will drive channel distribution and solve the matrketing perspective.
  • Transcript

    • 1. Who are they?
    • 2. Who are they? The Company’s strategy is built around a commitment to protect and leverage its core strengths –the product itself and the unique Little Creatures brand culture.
    • 3. The Brand
    • 4. Building values – internal & externalProduct Features Projection of self Fusion Technology  High achiever Tour support  Ultimate performanceCore Competency Staff Culture R&D Investment  ‘Fusion awards for innovation excellence’  champion success
    • 5. BRAND building PROCESS
    • 6. The Brand Lets get started on our evaluation…..
    • 7. Brand vision Long Term. Stretching. No current obstacles. Market goals (not organization goals). Reinforce purpose.Aligned to consumer values. Unique values ‘How is the world a better (not category values). place because of theMUST DRIVE BEHAVIOR brand’ . Beyond monetary.
    • 8. ENVISIONED FUTURE– WORKSHOP 1.Design an ENVISIONED FUTURE using likelihood versus impact matrix
    • 9. BRAND PURPOSE – WORKSHOP 1.Design the BRAND PURPOSE using the ‘5 WHY’s method’* *Collins and Porras 1996
    • 10. Brand Values – Workshop 1 Uncover the BRAND VALUES by the Laddering technique* workshop
    • 11. Brand values - Workshop 2. Mars Group*:Discover the common values of Little Creatures from a workshop with exemplars.
    • 12. Brand values - aligning to consumer
    • 13. Vision…To make great beer and greatcommunities.
    • 14. Organizational culture Brand building is through Emotional Values……. Its not so much WHAT customers receive but rather HOW they receive it…
    • 15. Organisation Culture at Little CreaturesFUNThe internal culture is consistent with the mission and purpose of theorganisationThe culture enhances performance, satisfaction and expectations of theorganisationNo visible sub-culturesHard working to deliver on promise
    • 16. Artefacts The Place (Do things first) : Little Creatures Dining Hall is certainly a beer barn, but a good-natured, reasonably stylish member of the species with a touch of creativity like oversized upholstery, coloured lights, large open spaces and posters describing the brewing process glued to the brick walls. Little Creatures manages to turn a potentially unfriendly surfeit of room into something that feels jolly, warm and convivial.The Logo (Do things fast) : Like the surroundings, theLittle Creature logo is Friendly, Naughty, Creative, Playful andrepresents the innocence of the people and the environment –The Cupid. They are trying to build sense of togetherness andcommunity and uniqueness. The Environment (Do things fast): The place is friendly, creative, unique, with an unlimited supply of high quality beer on tap The Group Culture in and around the company has seen it grow strongly in a highly competitive market
    • 17. The People (Creatures) (Do things together) : Thepeople are highly trained to provide top class service to patrons.The Dress code is casual, blue in colour and the employees arepassionate about their work and company. The Purpose (Do things together) : Commitment to quality and make great beer and provide a friendly and unique experience. The CEO is passionate about the beer, the people are passionate about the beer and therefore they are collectively passionate about their product and serviceThe Products (Do things right) : Main strategyemployed here is the KISS strategy, with minimal productlines of 4 beers and 1 cider, making it easy for the salespeople, hospitality staff and customersThis singular simplicity is what they hope will deliver themgrowth in the segment whilst enabling them to retain theirunique culture.
    • 18. The Behaviour (Do things together): The companyregularly calls for the involvement of the public and thecommunity by holding painting competitions, art galleries,design the stubby holder competitions.They involve the artists, general public and tourists intowatching the brewing process to understand the process andthe uniqueness of the brand. This explains the importance ofthe cellar door to the value of business.
    • 19. Brand Values – Workshop 1 Interviews with staff representative of each area – 5 Why’s test.Example (Beer Brewer):What are the 3 most important Core Values:activities of your job? •Be Passionate• Making the beerWhy? •Be caring and community•This is what we are selling mindedWhy?•Because we think it tastes great •Share the experience ofWhy? great beerBecause we love beer •Be proudKey assumptions:•People respect those who care.•If you are passionate you perform better•Happiness is bred by being proud of what you do.
    • 20. Brand values vs Cultural values
    • 21. Does the culture help achievethe brand promise? ✓
    • 22. BRAND objectives Let’s roll the future back…
    • 23. Brand objectives - Long / Short term To make great BEER and great COMMUNITIES. •To continually make better beer, enabling community love and togetherness through innovation, sustainability and responsible enjoyment. •To expand into international markets •20% profit increase year on year •Continual sales and growth in all product lines •Upgrade and expansion in trading area of the cellar door operations •Continued brand awareness growth
    • 24. The Brand Objectives
    • 25. BRANDsphere audit What are our five key forces which mayfacilitate the brand’s route towards its vision?
    • 26. BRANDsphere audit  Audit the 5 forces of Brandsphere rated as either IMPEDING or ENHANCING brand OBJECTIVES
    • 27. BRANDsphere audit in-depth analysis with various activities to assess the Brandsphere
    • 28. BRANDsphere audit - Corporation Actions taken CONSISTENT with espoused brand values: Coordination between departments (flat management structure) Values and relationship to employee understanding and departmental culture (Cross functional application from R&D to frontline staff consumer interactions and ‘recorded learning’ policy_ Brand heritage (local community focus translated to line extensions via White Rabbit [Healesville], Wood & Stone [Byron Bay], outlets in inner city ‘village’ [Fitzroy] Communications – low budget, community, fundraising, artistically based Core competencies – passion and expertise in beer-making and commitment to learning via consumer research Employee & stakeholder identification & brand citizenship – flat management structure and employee involvement/consultation. Sourcing of sustainable packaging options
    • 29. BRANDsphere audit - Distribution Brand vs. Distributor POWER relationships: Own ‘Cellar door’ and venue operations Third parties – boutique / independent re-sellers Third parties – national chains Negotiating Power & Investment strategies (POS. JVs, co-branding) Implications for niche brand associations in view of majority Lion Nathan ownership (40%)
    • 30. BRANDsphere audit - Competition Current COMPETITION scenarios: Niche vs. mainstream positioning in Australian market Australian boutique beers vs. international contenders (often owned by multi-nationals) Brief overview of market share of major Australian market players – Coopers, Fosters, Lion Nathan Consumer consequences (evident and hidden ownership structures and impact on brand associations)
    • 31. BRANDsphere audit - Competition Current COMPETITION scenarios: Niche vs. mainstream positioning (Local WA history vs. national push and acquisitions vs. retention of original brand values) Australian boutique beers vs. international contenders (opportunity for ‘Buy Australian’ angle) Relative market share of major Australian players – Coopers, Fosters, Lion Nathan Consumer & distributor consequences
    • 32. BRANDsphere audit – Macro Environment Current COMPETITION scenarios:Political / legislative (liquor licensing esp. in Melbourne)Economic (GFC, discretionary income implications consumer)Social (responsible drinking, drink and drive, ‘food & beer’ matching)Technological (new enviro-friendly manufacturing facilities & sustainable materials sourced)Environmental (consumer/community focussed campaigns – free bikes)
    • 33. BRAND essenceWhat are you made of?
    • 34. BRAND pyramid bringing the brand to life through personality  builds the foundation for communication What personality traits would the brand have if it were a person? What Value is linked to the emotion? What do they FEEL when they experience our brand? What benefits do our customers receive? What are the key attributes our brand offers to customers?
    • 35. BRAND pyramid
    • 36. BRAND essence For lovers of beer. BRAND positioning“To….beer lovers…..little creatures is the …..premium beer brand that offers….. an experience and taste that can only be delivered by a passion for brewing…..”
    • 37. Resourcing the brand
    • 38. Evaluation
    • 39. Distinctiveness of brand Model of differentiation From the mind From the of those directly people involved From the Brand involved with Brand users ✓ The distinctiveness of the brand is enhanced by their promise and core values.These are internalised effectively with a strong positive culture reflecting the vision.Need to communicate this to those directly and indirectly involved in the brand.
    • 40. EXISTING GAP BRAND VISION: drunk one and liked it, but “I’ve don’t know anything about them” •What progress has been made in bringing about a Marketing perspective – Marketshare welcomed envisioned future? “Heard of them, aren’t they just a •Thinking of the domain where Brand perspective – Differentiation thecustomer’s mind Perth beer?” in brand seeks to add value to people’s lives, to what extent is the brand making their world a bettergreat beer but that’s “Yeh it’s a place? •How accurate are the assessments of stakeholders all I know” about the brands values?
    • 41. SolutionHow do we significantly boost brandperformance?
    • 42. Better communicate externally thepersonality of the brand so thatcustomers understand Little Creatures’promise, building brand love and loyalty.
    • 43. Campaign of love“Anything can happen over a LittleCreature”