Strategic Design

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In most cases, art/design students have little idea of how business works. This presentation is an overarching view of the strategic role of design in business, but also peppered with some critical questions.

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Strategic Design

  1. 1. Strategic Design & Branding An Overview
  2. 2. Catch up <ul><ul><li>Please fill me in on the inputs you’ve got so far about branding & identity </li></ul></ul>
  3. 3. Assignment: Anatomy of a “brand” <ul><ul><li>List five brands at random that you currently use </li></ul></ul><ul><ul><li>Rearrange them in the order of loyalty & personal identification </li></ul></ul><ul><ul><li>Make an A3 collage of all the images & associations you have about the topmost brand </li></ul></ul><ul><ul><li>Discuss what exactly a brand is, from the points of view of: </li></ul></ul><ul><ul><ul><li>The customer/user </li></ul></ul></ul><ul><ul><ul><li>The seller/marketer </li></ul></ul></ul><ul><ul><ul><li>The designer </li></ul></ul></ul>
  4. 4. stra•te•gy (n) <ul><ul><li>The science and art of using all the forces of a nation to execute approved plans as effectively as possible during peace or war </li></ul></ul><ul><ul><li>A long-term plan of action designed to achieve a particular result </li></ul></ul>
  5. 5. Business made simple INCOME PROFIT EXPENDITURE
  6. 6. The (Business) Plan <ul><li>Commercial </li></ul><ul><ul><li>Introduction </li></ul></ul><ul><ul><li>The Business </li></ul></ul><ul><ul><ul><li>Background, Location, Premises </li></ul></ul></ul><ul><ul><li>Products & Services </li></ul></ul><ul><ul><ul><li>Main Features, Unique Selling Points </li></ul></ul></ul><ul><ul><li>The Team </li></ul></ul><ul><ul><ul><li>Skills, Knowledge, Experience, Finances </li></ul></ul></ul><ul><ul><li>The Market </li></ul></ul><ul><ul><ul><li>Customers, Competition </li></ul></ul></ul><ul><ul><li>Objectives </li></ul></ul><ul><ul><ul><li>Short, Medium, Long term </li></ul></ul></ul>
  7. 7. The (Business) Plan <ul><li>Financial Estimations </li></ul><ul><ul><li>Profit Budget </li></ul></ul><ul><ul><ul><li>Sales, Direct Costs, Overheads, Profits </li></ul></ul></ul><ul><ul><li>Cash-Flow Forecast </li></ul></ul><ul><ul><ul><li>Receipts, Payments, Balances </li></ul></ul></ul><ul><ul><li>Annual Accounts </li></ul></ul><ul><ul><ul><li>Profit & Loss Account, Balance Sheet </li></ul></ul></ul><ul><ul><li>Finance Requirements </li></ul></ul><ul><ul><ul><li>Finance Available, Finance Needed, Repayment Schedule, Security Available </li></ul></ul></ul>
  8. 8. Assignment: Make a Business Plan <ul><ul><li>Assume you’re going to team up and start your own design consultancy after leaving Srishti </li></ul></ul><ul><ul><li>Using the template provided just now, try and write out a business plan for your consultancy </li></ul></ul><ul><ul><li>Do NOT spend ANY time thinking up of its name, logo, etc. – stay focussed on its viability & profitability! </li></ul></ul><ul><ul><li>Do spend some time thinking about your likely customers and your competition </li></ul></ul>
  9. 9. Between Making & Selling… <ul><li>Marketing </li></ul><ul><ul><li>Is about Customers </li></ul></ul><ul><ul><li>Creating Customer Value and Satisfaction </li></ul></ul><ul><ul><li>“Marketing is the delivery of Customer Satisfaction at a profit.” </li></ul></ul><ul><ul><li>Marketing is NOT merely selling and advertising </li></ul></ul><ul><ul><li>It’s about understanding customer needs, developing products that provide superior value, prices/ distributes/ promotes them effectively, develops relationships with customers </li></ul></ul>
  10. 10. MARKETS NEEDS, WANTS & DEMANDS PRODUCTS & SERVICES VALUE & QUALITY TRANSACTIONS & RELATIONSHIPS
  11. 11. mar•ket (n),(v) <ul><ul><li>A market is the set of actual and potential buyers of a product or service </li></ul></ul><ul><ul><li>These buyers share a particular need or want that can be satisfied through exchanges & relationships </li></ul></ul><ul><ul><li>The size of a market depends on the number of people who exhibit the need, have resources, and are willing to exchange these resources for what they want </li></ul></ul>
  12. 12. Marketing Philosophies <ul><li>The Production Concept </li></ul><ul><ul><li>Consumers will favour products that are available and highly affordable; hence we should focus on improving production & distribution efficiency </li></ul></ul><ul><li>The Product Concept </li></ul><ul><ul><li>Consumers will favour products that offer the best quality, performance and innovative features; hence we should continuously improve our products </li></ul></ul><ul><li>The Selling Concept </li></ul><ul><ul><li>Consumers will not buy products unless they are sold and promoted aggressively </li></ul></ul><ul><li>The Marketing Concept </li></ul><ul><ul><li>Consumers will buy those products that satisfy needs & wants more effectively & efficiently than others </li></ul></ul>
  13. 13. Strategic Planning Defining the company mission Setting objectives & goals Designing the business portfolio Planning, marketing & other functional strategies
  14. 14. The Marketing Environment Target Consumers SUPPLIERS COMPETITORS INTEMEDIARIES OTHER INFLUENCES
  15. 15. The Marketing Mix Target Consumers PRODUCT PROMOTION PLACE PRICE Variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns List Price Discounts Allowances Payment Period Credit Terms Advertising Personal Selling Retail Promotions Public Relations Channels Coverage Assortments Locations Inventory Transportation Logistics
  16. 16. The Marketing Process Target Consumers Market Analysis Segmentation Targeting Positioning
  17. 17. The Marketing Process <ul><li>Segmentation </li></ul><ul><ul><li>Dividing a market into distinct groups of buyers with different needs, characteristics or behaviour, who might require distinct products or services </li></ul></ul><ul><li>Targeting </li></ul><ul><ul><li>Evaluating each segment’s attractiveness and selecting one or more segments to enter </li></ul></ul><ul><li>Positioning </li></ul><ul><ul><li>Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers </li></ul></ul>
  18. 18. Segmentation Variables <ul><li>Geographic </li></ul><ul><ul><li>Nationality, Regionality, City size, Density, Climate </li></ul></ul><ul><li>Demographic </li></ul><ul><ul><li>Age, Gender, Family size, Stage, Income, Occupation, Education, Religion, Race, Nationality </li></ul></ul><ul><li>Psychographic </li></ul><ul><ul><li>Social Class, Lifestyle, Personality </li></ul></ul><ul><li>Behavioural </li></ul><ul><ul><li>Occasions, Benefits, User Status, Loyalty Status, Readiness Stage, Attitude Towards Product </li></ul></ul>
  19. 19. Mapping the Consumer <ul><li>Cultural </li></ul><ul><ul><li>Culture, Subculture, Social Class </li></ul></ul><ul><li>Social </li></ul><ul><ul><li>Reference Groups, Family, Roles & Status </li></ul></ul><ul><li>Personal </li></ul><ul><ul><li>Age & Stage, Occupation, Economic Situation, Lifestyle, Personality & Self-Concept </li></ul></ul><ul><li>Psychological </li></ul><ul><ul><li>Motivation, Perception, Learning, Beliefs & Attitudes </li></ul></ul>
  20. 20. Positioning for Competitive Advantage <ul><li>Differentiation </li></ul><ul><ul><li>Product Differentiation </li></ul></ul><ul><ul><li>Service Differentiation </li></ul></ul><ul><ul><li>People Differentiation </li></ul></ul><ul><ul><li>Image Differentiation </li></ul></ul><ul><li>Strategies </li></ul><ul><ul><li>Product Attributes </li></ul></ul><ul><ul><li>Benefits Offered </li></ul></ul><ul><ul><li>Usage Occasions </li></ul></ul><ul><ul><li>User Types </li></ul></ul><ul><ul><li>Against Competitors </li></ul></ul><ul><ul><li>Product Class </li></ul></ul>
  21. 21. Considered Differentiation <ul><ul><li>Difference is only worth establishing to the extent it is: </li></ul></ul><ul><ul><ul><li>IMPORTANT </li></ul></ul></ul><ul><ul><ul><li>DISTINCTIVE </li></ul></ul></ul><ul><ul><ul><li>SUPERIOR </li></ul></ul></ul><ul><ul><ul><li>COMMUNICABLE </li></ul></ul></ul><ul><ul><ul><li>PRE-EMPTIVE/EXCLUSIVE </li></ul></ul></ul><ul><ul><ul><li>AFFORDABLE </li></ul></ul></ul><ul><ul><ul><li>PROFITABLE </li></ul></ul></ul>
  22. 22. Assignment: Your Business Plan <ul><ul><li>Based on the recent inputs, detail out: </li></ul></ul><ul><ul><ul><li>Segmentation of your market </li></ul></ul></ul><ul><ul><ul><li>Choose your target market </li></ul></ul></ul><ul><ul><ul><li>Differentiation of your business </li></ul></ul></ul><ul><ul><ul><li>Positioning of your business </li></ul></ul></ul>
  23. 23. brand (n),(v) <ul><ul><li>A brand represents the holistic sum of all information about a company, product or a group of products </li></ul></ul><ul><ul><li>This symbolic construct typically consists of a name, identifying mark, logo, visual images or symbols, or mental concepts which distinguishes the product or service </li></ul></ul><ul><ul><li>It serves to align expectations in the mind of its stakeholders </li></ul></ul><ul><ul><li>It can be envisioned as the ‘personality’ of the company, product or group of products </li></ul></ul>Bottomline A brand doesn’t have to be created, it exists anyway as the sum total of people’s perceptions about the product/ service/ organisation
  24. 24. MAPPING BRAND PERSONALITY: THE ONION-RING MODEL
  25. 25. The Outermost Layer: SYMBOLS/ LANGUAGE
  26. 26. The Next Inner Layer: RITUALS & PROTOCOLS
  27. 27. The Next Inner Layer: HEROS & ROLE MODELS
  28. 28. At the Core: VALUES & BELIEFS
  29. 29. Designing Brands <ul><li>New Brand </li></ul><ul><ul><li>Do an audit of competitive brands using Onion-Ring model </li></ul></ul><ul><ul><li>Build model for proposed new brand, using positioning statement </li></ul></ul><ul><li>Existing Brand </li></ul><ul><ul><li>Do an audit of own as well as competitive brands </li></ul></ul><ul><ul><li>Build model of desired positioning/repositioning of own brand </li></ul></ul><ul><ul><li>Contrast existing vs desired vs competitive brands </li></ul></ul>
  30. 30. Concepts you ought to know <ul><li>Stakeholders </li></ul><ul><ul><li>Sets or groups of people/institutions who have an influence or bearing on the sustained success of the brand </li></ul></ul><ul><ul><li>Typically these start from the actual customers (existing & prospective) to employees to suppliers to distributors to press & media to government etc. in decreasing order of significance </li></ul></ul><ul><li>Touchpoints </li></ul><ul><ul><li>Every instance where the brand comes into contact with its customer & vice versa </li></ul></ul><ul><ul><li>Typically includes the product itself, packaging, retail point, user manual, after-sales service, salesperson, advertising, help desk, etc. </li></ul></ul>
  31. 31. Concepts you ought to know <ul><li>The three critical C’s in branding: </li></ul><ul><ul><li>Consistency </li></ul></ul><ul><ul><li>Clarity </li></ul></ul><ul><ul><li>Credibility </li></ul></ul><ul><ul><ul><li>Meaningful </li></ul></ul></ul><ul><ul><ul><li>Motivating </li></ul></ul></ul><ul><ul><ul><li>Targeted </li></ul></ul></ul>
  32. 32. Assignment: Your Business Plan <ul><ul><li>Based on your business plan, your marketing plan, and your positioning: </li></ul></ul><ul><ul><ul><li>Draw up an Onion Ring model for your own brand </li></ul></ul></ul><ul><ul><ul><li>Think up of five NAMES (no LOGOs!) </li></ul></ul></ul><ul><ul><ul><li>Make a list of all the likely TOUCHPOINTS of your brand </li></ul></ul></ul><ul><ul><ul><li>INNOVATE each touchpoint in an unconventional yet effective way, ideally less expensive than the conventional! </li></ul></ul></ul>
  33. 33. Discussion <ul><ul><li>“Brands are less and less about what we buy, and more and more about who we are.” </li></ul></ul><ul><ul><ul><li>Check out www.lovemarks.com </li></ul></ul></ul><ul><ul><li>On the other hand: </li></ul></ul><ul><ul><li>“Brands are dead – consumers have become immune to them!” </li></ul></ul><ul><ul><ul><li>Check out www.adbusters.org, www.37signals.com/enormicom </li></ul></ul></ul>Can the power of brands & branding be used for social good? If yes, how?
  34. 34. Trends for brands in our culture <ul><li>Source of Identity </li></ul><ul><ul><li>Shift from Status Symbol to Things We Believe In </li></ul></ul><ul><li>Source of Meaning </li></ul><ul><ul><li>Metaphors for Our Spiritual Needs </li></ul></ul><ul><li>Brand as Community </li></ul><ul><ul><li>Bringing People Together Around Shared Values </li></ul></ul><ul><li>Brand as Trust Mark </li></ul><ul><ul><li>Repository of Trust in Confusing Times </li></ul></ul><ul><li>Brand as Simplifier </li></ul><ul><ul><li>Helping Us Cut Through Clutter </li></ul></ul>
  35. 35. Discussion <ul><li>“Brands aren’t simply in the culture, they are the culture.” </li></ul><ul><ul><li>No longer just represent economic value </li></ul></ul><ul><ul><li>Central meaning-making institutions in people’s lives </li></ul></ul><ul><ul><li>Definers of “cool” </li></ul></ul>If brands are indeed the future culture, how can they be freed of corporate control?
  36. 36. Ju-Jitsu: Subversion <ul><ul><li>The core principle of Ju-Jitsu is to use the opponent’s own might and momentum to beat him </li></ul></ul><ul><ul><li>Spoofing is a “ju-jitsu” way of subverting the might of a brand </li></ul></ul><ul><ul><ul><li>Check out the Adbusters magazine issues in the library </li></ul></ul></ul><ul><ul><ul><li>Join me in deflating puffed-up clichés like the “flattened earth”, “egalitarian information economy” and “e-governance democracy” for the forthcoming worldinformation.org event in November? </li></ul></ul></ul>Can you use spoofing to raise critical consciousness about the corporatisation of culture or the mediation of authenticity?
  37. 37. Reading List <ul><ul><li>Principles of Marketing </li></ul></ul><ul><ul><ul><li>Kotler & Armstrong </li></ul></ul></ul><ul><ul><li>The Designer’s Guide to Brand Strategy </li></ul></ul><ul><ul><ul><li>M Damien Newman </li></ul></ul></ul><ul><ul><li>No Logo </li></ul></ul><ul><ul><ul><li>Naomi Klein </li></ul></ul></ul><ul><ul><li>www.brandchannel.com </li></ul></ul><ul><ul><li>www.lovemarks.com </li></ul></ul><ul><ul><li>www.adbusters.org </li></ul></ul><ul><ul><li>en.wikipedia.org </li></ul></ul>

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