GOOD BRANDS GROW BUSINESS
DOES EVERY BRAND NEED  BRANDING?
SENSORY OVERLOAD Consumers are nowadays bombarded by over 600 messages on any given day.
<ul><li>Early 90s </li></ul><ul><li>21st Century </li></ul><ul><li>Nature’s Way </li></ul><ul><li>Kordel </li></ul><ul><li...
From: Limited Purchasing Lower Education Home Bound Easily Satisfied CHANGING CONSUMER PROFILE  ©B RANDZ   All rights rese...
BRAND INCONSISTENCY 98% of companies say one thing but deliver something very different from their actions TIME NOW YEARS/...
<ul><li>Need to distinguish ourselves from others to  be heard   and   stay relevant </li></ul>
SOME CONCLUSIONS <ul><li>Every business that is serious about the success of its brand must realize that : </li></ul><ul><...
WHY? <ul><li>Consumer  brand choices  are not solely based on rational reasons </li></ul><ul><li>Functional  brand feature...
<ul><li>Technology can be  copied : </li></ul><ul><ul><li>Your brand can be outspec’ed, outdesigned and outpriced! </li></...
<ul><li>It’s not about records, mobile phones, airlines or drinks. It did not start off that way. </li></ul><ul><li>Began ...
WHAT LESSONS CAN WE LEARN FROM VIRGIN? <ul><li>Brand Essence  – Fun & Irreverence </li></ul><ul><li>Consistent application...
SO HOW CAN YOUR BRAND EMULATE THE  VIRGIN SUCCESS?
DELIVER A VALUE PROPOSITION   <ul><li>What is this? </li></ul><ul><li>“  A brand’s value proposition is a statement of the...
FUNCTIONAL BENEFITS <ul><li>A benefit  based on a product attribute  that provides  functional utility and benefit  to the...
SO WHAT’S WRONG WITH FUNCTIONAL BENEFITS? <ul><li>Absolutely nothing! </li></ul><ul><li>But…. </li></ul><ul><ul><li>The ch...
LIMITATIONS OF FUNCTIONAL BENEFITS <ul><li>Functional benefits based on product attributes: </li></ul><ul><ul><li>Fail to ...
EMOTIONAL BENEFITS <ul><li>When a brand provides the user with a  positive feeling  then  the brand is providing an emotio...
SO WHAT’S SO POSITIVE ABOUT EMOTIONAL BENEFITS? <ul><li>Emotional benefits  add richness and depth to the experience  of o...
FUSING FUNCTIONAL & EMOTIONAL BENEFITS <ul><li>The strongest brands have both functional and emotional benefits as part of...
SELF-EXPRESSIVE BENEFITS <ul><li>Brands have become symbols of a person’s self-concept. Thus a brand provides a self-expre...
STRONG BRANDS Functional benefits Emotional benefits Self-expressive benefits THE VALUE PROPOSITION MODEL
THE KEYS TO BRAND LONGEVITY
ENSURE BRAND RELEVANCE <ul><li>Adopt a consumer-driven   approach   </li></ul><ul><li>Work from “outside-in” to develop br...
COMMIT TO A REAL DIFFERENTIATOR   <ul><li>Take a unique real and  believable strategic position for your brand . Do not fa...
HAVE A VALUE PROPOSITION <ul><li>Combine  emotional, functional  and  self expressive  benefits to achieve differentiation...
INVEST IN YOUR BRAND <ul><li>Put money into  research and development  to enhance the product/service delivery of quality....
HAVE A BRAND ARCHITECTURE <ul><li>It establishes a  system of relationships  and structure for all the brands in a company...
Master brand supporting/endorsing autonomous brands  Technological advancement for increased hair vitality 2/3 in-one for ...
Master brand supporting/endorsing autonomous brands  Premium priced, superior cleaning One for every Asian hair type Super...
END
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How a good brand grows your business

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Does every brand need branding?

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How a good brand grows your business

  1. 1. GOOD BRANDS GROW BUSINESS
  2. 2. DOES EVERY BRAND NEED BRANDING?
  3. 3. SENSORY OVERLOAD Consumers are nowadays bombarded by over 600 messages on any given day.
  4. 4. <ul><li>Early 90s </li></ul><ul><li>21st Century </li></ul><ul><li>Nature’s Way </li></ul><ul><li>Kordel </li></ul><ul><li>Blackmores </li></ul><ul><li>Now </li></ul><ul><li>21st Century </li></ul><ul><li>Nature’s Way </li></ul><ul><li>Kordel </li></ul><ul><li>Blackmores </li></ul><ul><li>GNC </li></ul><ul><li>ShakeLee </li></ul><ul><li>Nature’s Life </li></ul><ul><li>Country Life </li></ul><ul><li>Nutrens </li></ul><ul><li>Ocean Health </li></ul>SUPPLEMENTS - COPYCATS & OVER SUPPLY <ul><li>Bio-Life </li></ul><ul><li>Seven Seas </li></ul><ul><li>Centrum </li></ul><ul><li>Herb Valley </li></ul><ul><li>Brands </li></ul><ul><li>VitaHealth </li></ul><ul><li>Bio Science </li></ul><ul><li>Food Source </li></ul><ul><li>Nature Farm </li></ul><ul><li>x </li></ul>
  5. 5. From: Limited Purchasing Lower Education Home Bound Easily Satisfied CHANGING CONSUMER PROFILE ©B RANDZ All rights reserved To: Affluent Well Educated Well Traveled Demanding
  6. 6. BRAND INCONSISTENCY 98% of companies say one thing but deliver something very different from their actions TIME NOW YEARS/EXPANSION/COMPETITIVE PRESSURE I1 D1 D2 I2 D3 I: Brand Image D: Delivery BRAND GAP Perception Does Not Equal Reality
  7. 7. <ul><li>Need to distinguish ourselves from others to be heard and stay relevant </li></ul>
  8. 8. SOME CONCLUSIONS <ul><li>Every business that is serious about the success of its brand must realize that : </li></ul><ul><ul><li>IT IS IMPERATIVE TO BRAND FOR LONGEVITY AND SUCCESS. </li></ul></ul>
  9. 9. WHY? <ul><li>Consumer brand choices are not solely based on rational reasons </li></ul><ul><li>Functional brand features do not give your brand the needed differentiation </li></ul><ul><li>Consumer tastes and market forces are fluid…. they change ! </li></ul>
  10. 10. <ul><li>Technology can be copied : </li></ul><ul><ul><li>Your brand can be outspec’ed, outdesigned and outpriced! </li></ul></ul><ul><li>Your brand as a person, with its unique personality traits cannot be copied . Branding can develop this ‘Personality’ </li></ul>
  11. 11. <ul><li>It’s not about records, mobile phones, airlines or drinks. It did not start off that way. </li></ul><ul><li>Began in the 1970s with a student magazine </li></ul><ul><li>and small mail order record company. </li></ul><ul><li>They have based every decision on hard research and analysis. They put themselves in the customers’ shoes to see what could make it better – are the customers confused or badly served? Is there an opportunity – seize it? They believe in branding! </li></ul><ul><li>It’s all about Fun and Irreverence </li></ul><ul><li>Today, the Virgin brand is a global brand name with a total revenue in excess of US$5 billion. </li></ul>VIRGIN - DIVERSIFIED YET FOCUSED
  12. 12. WHAT LESSONS CAN WE LEARN FROM VIRGIN? <ul><li>Brand Essence – Fun & Irreverence </li></ul><ul><li>Consistent application of this essence in every business and sub-brand they have. </li></ul><ul><ul><ul><li>The Virgin Atlantic Story </li></ul></ul></ul><ul><ul><ul><ul><li>Lost baggage </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Office Opening </li></ul></ul></ul></ul><ul><ul><ul><ul><li>In flight souvenirs </li></ul></ul></ul></ul>
  13. 13. SO HOW CAN YOUR BRAND EMULATE THE VIRGIN SUCCESS?
  14. 14. DELIVER A VALUE PROPOSITION <ul><li>What is this? </li></ul><ul><li>“ A brand’s value proposition is a statement of the functional, emotional and self-expressive benefits delivered by the brand that provide value to the customer. An effective value proposition should lead to a brand-customer relationship and drive purchase decisions .” </li></ul><ul><li>- David Aacker- </li></ul><ul><li>Building Strong Brands </li></ul>
  15. 15. FUNCTIONAL BENEFITS <ul><li>A benefit based on a product attribute that provides functional utility and benefit to the customer. </li></ul><ul><li>Some examples: </li></ul><ul><ul><li>Volvo is safe and durable because of its weight and design </li></ul></ul><ul><ul><li>A 7-Eleven store means convenience </li></ul></ul><ul><ul><li>Coke provides refreshment and taste </li></ul></ul><ul><ul><li>A BMW vehicle handles so well… even on ice </li></ul></ul><ul><ul><li>100Plus helps replace body fluids lost through perspiration </li></ul></ul><ul><ul><li>Dynamo liquid removes stains and washes cleaner </li></ul></ul>
  16. 16. SO WHAT’S WRONG WITH FUNCTIONAL BENEFITS? <ul><li>Absolutely nothing! </li></ul><ul><li>But…. </li></ul><ul><ul><li>The challenge is to select functional benefits that will “hit the spot” and make a connection with the customer. </li></ul></ul><ul><ul><li>How many functional benefits are there left that can do this? They are mostly generic ! </li></ul></ul>
  17. 17. LIMITATIONS OF FUNCTIONAL BENEFITS <ul><li>Functional benefits based on product attributes: </li></ul><ul><ul><li>Fail to differentiate </li></ul></ul><ul><ul><li>Can be copied </li></ul></ul><ul><ul><li>Assume a rational decision maker </li></ul></ul><ul><ul><li>Restrict brand extensions </li></ul></ul>
  18. 18. EMOTIONAL BENEFITS <ul><li>When a brand provides the user with a positive feeling then the brand is providing an emotional benefit. </li></ul><ul><li>Some examples: </li></ul><ul><ul><li>Energetic & vibrant when drinking Coke </li></ul></ul><ul><ul><li>Strong & rugged when wearing Levis </li></ul></ul><ul><ul><li>Confident and glowing when using Dove </li></ul></ul><ul><ul><li>In control of the aging process when using Oil of Olay </li></ul></ul><ul><ul><li>Sporty, masculine and successful when wearing a TAG Hueuer </li></ul></ul>
  19. 19. SO WHAT’S SO POSITIVE ABOUT EMOTIONAL BENEFITS? <ul><li>Emotional benefits add richness and depth to the experience of owning and using the brand </li></ul><ul><li>They enable brand differentiation in a cluttered over-communicated market </li></ul>
  20. 20. FUSING FUNCTIONAL & EMOTIONAL BENEFITS <ul><li>The strongest brands have both functional and emotional benefits as part of their value proposition, e.g. </li></ul><ul><ul><li>Pantene: Adds emotional benefit “You will look and feel terrific” to functional benefit “For hair that’s thicker and fuller ” , very successfully throughout its range. </li></ul></ul>
  21. 21. SELF-EXPRESSIVE BENEFITS <ul><li>Brands have become symbols of a person’s self-concept. Thus a brand provides a self-expressive benefit by providing a way for him to express his self-image . </li></ul><ul><li>Some examples: </li></ul><ul><ul><li>Successful and powerful when I drive a Mercedes Benz </li></ul></ul><ul><ul><li>Sophisticated when using Davidoff perfume </li></ul></ul><ul><ul><li>Discerning & tasteful when wearing an Armani suit </li></ul></ul><ul><ul><li>Caring & nurturing when serving Fernleaf milk </li></ul></ul><ul><ul><li>Sporty and young in outlook when driving an Alfa </li></ul></ul>
  22. 22. STRONG BRANDS Functional benefits Emotional benefits Self-expressive benefits THE VALUE PROPOSITION MODEL
  23. 23. THE KEYS TO BRAND LONGEVITY
  24. 24. ENSURE BRAND RELEVANCE <ul><li>Adopt a consumer-driven approach </li></ul><ul><li>Work from “outside-in” to develop brand offerings that meet and fit with current/future consumer wants. This ensures relevance, longevity and success of your brands. </li></ul>
  25. 25. COMMIT TO A REAL DIFFERENTIATOR <ul><li>Take a unique real and believable strategic position for your brand . Do not fall into the product attribute (e.g. “washes cleaner”) trap. Be bold and take a position that enables your brand to stand out. </li></ul>
  26. 26. HAVE A VALUE PROPOSITION <ul><li>Combine emotional, functional and self expressive benefits to achieve differentiation. Skillfully combined, they deliver a value proposition that builds a relationship between user and brand, going beyond just loyalty. </li></ul>
  27. 27. INVEST IN YOUR BRAND <ul><li>Put money into research and development to enhance the product/service delivery of quality. </li></ul><ul><li>Be willing to invest in packaging design, distribution, promotions . </li></ul><ul><li>Ensure you have a clear feedback from the market about your brand’s appeal. Invest in market research </li></ul>
  28. 28. HAVE A BRAND ARCHITECTURE <ul><li>It establishes a system of relationships and structure for all the brands in a company’s stable. This will avoid confusion. </li></ul><ul><li>In every touch point the brand has with its users, the brand experience must be aligned and consistent . </li></ul>
  29. 29. Master brand supporting/endorsing autonomous brands Technological advancement for increased hair vitality 2/3 in-one for convenience Dandruff control PROCTER & GAMBLE SHAMPOO RANGE PANTENE REJOICE HEAD & SHOULDERS
  30. 30. Master brand supporting/endorsing autonomous brands Premium priced, superior cleaning One for every Asian hair type Superior cleaning, economy priced UNILEVER PRODUCT RANGE (partial) BREEZE SUNSILK EKONOMI HANDALAN
  31. 31. END
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