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A Refresher on Brands, Branding and Business Strategy
A consistent investment in a high-performing brand is an assurance to shareholders of the promise of future cash flows
“ Consumers like brands ‘coz they package meaning”.  “ They form a kind of  shorthand  that makes choice easier. They spar...
What great brands share? <ul><li>A compelling idea </li></ul><ul><ul><li>BMW – “the ultimate driving machine” </li></ul></...
How do we go about building brands? <ul><li>Point A : How consumers see our brand today? </li></ul><ul><li>Point B : How d...
Ten Strategy Checkpoints <ul><li>Be Single-minded </li></ul><ul><ul><li>Essence of strategy/positioning is  sacrifice  (e....
Ten Strategy Checkpoints <ul><li>Make a meaningful promise to the customers </li></ul><ul><ul><li>QTips – 50% more cotton ...
“ All men can see the tactics whereby I conquer, but none can see the strategy out of which great victory is evolved” - Su...
The consumer decision making model The Environment The Consumer Segments Category Benefits Competitive Choices <ul><li>Ris...
Risk Assessment in Buying Decision High Involvement Low Involvement Thinking Feeling <ul><li>Automobiles </li></ul><ul><li...
The ‘So-what’? Test for Marketers <ul><li>The feature we offer include: </li></ul>Which means that <ul><li>Customers benef...
Brands and the rising  emotional  charge To make choice easy (even unthinking) Is it the real thing? A guarantee of authen...
“ We are in the business of  connecting   human  needs to  commercial  needs and making it all seem a lot of fun” -  Anony...
Some Positioning Options <ul><li>Particular Attribute (Clove Oil) </li></ul><ul><li>Specific User Benefit (Fresh Breath) <...
Perceptual Mapping BMW <ul><li>Lada </li></ul><ul><li>Ford </li></ul><ul><li>Vauxhall </li></ul><ul><li>VW </li></ul><ul><...
Key questions addressed by analytics What is the worst/best that can happen? (Prediction, optimization, simulation) What i...
Strategy Statement : Dove Soap <ul><li>Objective : Try / 14 days / Compare </li></ul><ul><li>Who : 25+, has dry skin  </li...
MISSION Our purpose: What we do, what we are about today VISION An aspirational statement of What we want to become at poi...
Brand Value Chain Strategic Brand Management – Kevin Lane Keller Value  Stages Marketing Program Investment <ul><li>Produc...
*Ten Rules of Effective Language <ul><li>Simplicity </li></ul><ul><li>Brevity </li></ul><ul><li>Credibility </li></ul><ul>...
Three Value Drivers …in identifying and implementing business strategy <ul><li>Operational Excellence </li></ul><ul><ul><l...
The Value Context <ul><li>Getting  more  for  more   (Starbucks, Haagen Daz) </li></ul><ul><li>Getting  more  for  same   ...
Ten Most Significant Potential Competitive Advantages  <ul><li>Superior product or service benefit:  First Direct, Toyota,...
Ten Key Elements of World-class Marketing <ul><li>Profound understanding of the marketplace </li></ul><ul><li>Creative seg...
References <ul><li>Understanding Brands </li></ul><ul><ul><li>Peter Cheverton </li></ul></ul><ul><ul><ul><li>The Sunday Ti...
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A Refresher On Brands Branding And Business Strategy

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What a brand is all about and how to go about building one.

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Transcript of "A Refresher On Brands Branding And Business Strategy"

  1. 1. A Refresher on Brands, Branding and Business Strategy
  2. 2. A consistent investment in a high-performing brand is an assurance to shareholders of the promise of future cash flows
  3. 3. “ Consumers like brands ‘coz they package meaning”. “ They form a kind of shorthand that makes choice easier. They spare the consumer from a feature-by-feature analysis of category alternatives” a - Alex Biel, former head of Ogilvy centre for R&D
  4. 4. What great brands share? <ul><li>A compelling idea </li></ul><ul><ul><li>BMW – “the ultimate driving machine” </li></ul></ul><ul><ul><li>Nike – “Authentic Athletic Performance” </li></ul></ul><ul><ul><li>Disney – “Fun with Family & Friends” </li></ul></ul><ul><ul><li>FedEx – “When it absolutely, positively needed overnight” </li></ul></ul><ul><li>A resolute core purpose and supporting idea </li></ul><ul><ul><li>Mini from BMW </li></ul></ul><ul><li>A central organizational principle </li></ul><ul><ul><li>“Is this on brand?” </li></ul></ul>
  5. 5. How do we go about building brands? <ul><li>Point A : How consumers see our brand today? </li></ul><ul><li>Point B : How do we want them to see our brand tomorrow as a result of an investment in a marketing program? </li></ul><ul><li>Strategy is the route map laying down how we will get from “Point A” to “Point B” </li></ul>
  6. 6. Ten Strategy Checkpoints <ul><li>Be Single-minded </li></ul><ul><ul><li>Essence of strategy/positioning is sacrifice (e.g. in NY there are many attractions but focus is on Broadway) </li></ul></ul><ul><li>Make it fit an overall plan </li></ul><ul><ul><li>Mac – simple, user-friendly, professional user </li></ul></ul><ul><li>Keep your objectives reasonable </li></ul><ul><ul><li>Change brands / change behavior </li></ul></ul><ul><li>Make your strategy easy to use </li></ul><ul><ul><li>Brief is typically less than one page </li></ul></ul><ul><li>Decide where your business will come from </li></ul><ul><ul><li>Nutrasweet r/ sugar </li></ul></ul>
  7. 7. Ten Strategy Checkpoints <ul><li>Make a meaningful promise to the customers </li></ul><ul><ul><li>QTips – 50% more cotton tip – best for babies </li></ul></ul><ul><li>Understand the importance (or unimportance) of your product </li></ul><ul><ul><li>Badge product / rice </li></ul></ul><ul><li>Set yourself apart </li></ul><ul><ul><li>$B spent on five words: new, white, cool, power, relief </li></ul></ul><ul><li>Relate the unknown to the known </li></ul><ul><ul><li>Frame of reference </li></ul></ul><ul><li>Keep your strategy up-to-date </li></ul><ul><ul><li>“ Take the brand out of bedroom slippers into nikes” </li></ul></ul>
  8. 8. “ All men can see the tactics whereby I conquer, but none can see the strategy out of which great victory is evolved” - Sun Tzu Art of War
  9. 9. The consumer decision making model The Environment The Consumer Segments Category Benefits Competitive Choices <ul><li>Risk Assessment </li></ul><ul><li>Performance Risk </li></ul><ul><li>Social Risk </li></ul><ul><li>Self Image </li></ul><ul><li>Brand Choice Hierarchy </li></ul><ul><li>Considered </li></ul><ul><li>Neutral </li></ul><ul><li>Rejected </li></ul>Purchase
  10. 10. Risk Assessment in Buying Decision High Involvement Low Involvement Thinking Feeling <ul><li>Automobiles </li></ul><ul><li>Washing Machine </li></ul><ul><li>Music System </li></ul>Cigarettes TV Perfumes Deodorants
  11. 11. The ‘So-what’? Test for Marketers <ul><li>The feature we offer include: </li></ul>Which means that <ul><li>Customers benefit as follows </li></ul>So what? Benefits are broadly the same as offered by competitive products Benefits are greater than those delivered by competitive products Need to re-think existing benefits These provide the basis for marketing differentiation
  12. 12. Brands and the rising emotional charge To make choice easy (even unthinking) Is it the real thing? A guarantee of authenticity e.g. Kellogg’s To influence choice Will it do what I want it to do? A promise of performance in use e.g. Duracell To win a premium price Will I love it? Satisfaction or pleasure in use e.g. Dulux Paints To facilitate conspicuity Will someone love me for loving it? The social expression e.g. Rolex The role of the brand The main issues for the consumer The emotional charge
  13. 13. “ We are in the business of connecting human needs to commercial needs and making it all seem a lot of fun” - Anonymous Likewise, Advertising is about doing things to consumers, not saying things for manufactures. Advertising is an art of delivering a sales proposition in an attention-getting, involving vehicle and positioning the product uniquely in the consumer’s mind.
  14. 14. Some Positioning Options <ul><li>Particular Attribute (Clove Oil) </li></ul><ul><li>Specific User Benefit (Fresh Breath) </li></ul><ul><li>Specific User (Mac for Graphic Designers) </li></ul><ul><li>Benefits of Heritage (Tata-Trust) </li></ul><ul><li>Reference to Competition (Avis) </li></ul><ul><li>Status in the Category (Google for Search) </li></ul>
  15. 15. Perceptual Mapping BMW <ul><li>Lada </li></ul><ul><li>Ford </li></ul><ul><li>Vauxhall </li></ul><ul><li>VW </li></ul><ul><li>Merc </li></ul><ul><li>Jaguar </li></ul><ul><li>Porche </li></ul><ul><li>Where the TA places your proposition in their mind </li></ul><ul><li>Identify market gaps </li></ul>
  16. 16. Key questions addressed by analytics What is the worst/best that can happen? (Prediction, optimization, simulation) What is the next action? (Recommendations) How & Why (Modeling, Experiential Design) Insight What will happen? (Extrapolation) What is happening? (Alerts) What happened? (Reporting) Information Future Present Past
  17. 17. Strategy Statement : Dove Soap <ul><li>Objective : Try / 14 days / Compare </li></ul><ul><li>Who : 25+, has dry skin </li></ul><ul><li>Key Consumer Insight or Idea : Dove does not dry your skin as other soaps can </li></ul><ul><li>Reason to Believe : ¼ moisturizing lotion </li></ul><ul><li>Tone : always real; always honest </li></ul>
  18. 18. MISSION Our purpose: What we do, what we are about today VISION An aspirational statement of What we want to become at point of time in the future OPERATING PRINCIPLES How we conduct business at this point in time Brand Essence / Dimensions Values Core Beliefs What we stand for Behaviors How we interact with external or internal stakeholders Positioning What we want stakeholders to think about our brand Identity Names, logos. Visual stds Verbal themes Business Objectives What we want to establish at this point in time Business Strategies How can we achieve our current objectives? Business Tactics Marketing Communications Product / Service Development Operations Finance Technology Human Resources Product / Service Delivery Brand Organizational Context
  19. 19. Brand Value Chain Strategic Brand Management – Kevin Lane Keller Value Stages Marketing Program Investment <ul><li>Product </li></ul><ul><li>Communication </li></ul><ul><li>Trade </li></ul><ul><li>Employee </li></ul><ul><li>Others </li></ul>Consumer Mindset <ul><li>Awareness </li></ul><ul><li>Association </li></ul><ul><li>Attitude </li></ul><ul><li>Attachment </li></ul><ul><li>Activity </li></ul>Market Performance <ul><li>Price Premium </li></ul><ul><li>Price Elasticity </li></ul><ul><li>Market Share </li></ul><ul><li>Expansion Success </li></ul><ul><li>Cost Structure </li></ul><ul><li>Profitability </li></ul>Shareholder Value <ul><li>Stock Price </li></ul><ul><li>P:E Ratio </li></ul><ul><li>Market Capitalization </li></ul>Multiplier Program Quality* <ul><li>Clarity </li></ul><ul><li>Relevance </li></ul><ul><li>Distinctiveness </li></ul><ul><li>Consistency </li></ul>Market Condition <ul><li>Competitor Effort </li></ul><ul><li>Channel Support </li></ul><ul><li>Customer Size and Profile </li></ul>Investor Sentiments <ul><li>Market Dynamics </li></ul><ul><li>Growth </li></ul><ul><li>Risk Profile </li></ul><ul><li>Brand Contribution </li></ul>
  20. 20. *Ten Rules of Effective Language <ul><li>Simplicity </li></ul><ul><li>Brevity </li></ul><ul><li>Credibility </li></ul><ul><li>Consistency </li></ul><ul><li>Novelty </li></ul><ul><li>Sound </li></ul><ul><li>Aspiration </li></ul><ul><li>Visualization </li></ul><ul><li>Questions </li></ul><ul><li>Context </li></ul>
  21. 21. Three Value Drivers …in identifying and implementing business strategy <ul><li>Operational Excellence </li></ul><ul><ul><li>IKEA </li></ul></ul><ul><li>Product Leadership </li></ul><ul><ul><li>Microsoft </li></ul></ul><ul><li>Customer Intimacy </li></ul><ul><ul><li>Nordstrom </li></ul></ul>* The discipline of market leaders - Michael Treacy & Fred Wiersema
  22. 22. The Value Context <ul><li>Getting more for more (Starbucks, Haagen Daz) </li></ul><ul><li>Getting more for same (Lexus) </li></ul><ul><li>Getting more for less (Wal-Mart) </li></ul><ul><li>Getting same for less (Tesco – “Rip off Britain”) </li></ul><ul><li>Getting less for much less (Easy Jet) </li></ul>Giving part of the equation does not always have to be money – it could be sacrifice of amenities, an acceptance of risk or ‘manageable’ level of discomfort
  23. 23. Ten Most Significant Potential Competitive Advantages <ul><li>Superior product or service benefit: First Direct, Toyota, Disney, Samsung </li></ul><ul><li>Perceived Superiority: Marlboro </li></ul><ul><li>Low-cost operations: Wal-Mart </li></ul><ul><li>Global skills, global experience, global coverage: Coca Cola, McDonald’s </li></ul><ul><li>Legal advantages: Patents etc . </li></ul><ul><li>Superior contacts and relationships: Suppliers, distributors, customers … </li></ul><ul><li>Scale </li></ul><ul><li>An attitude of competitive toughness: P&G </li></ul><ul><li>Superior competencies: IKEA </li></ul><ul><li>Superior assets </li></ul>
  24. 24. Ten Key Elements of World-class Marketing <ul><li>Profound understanding of the marketplace </li></ul><ul><li>Creative segmentation and market selection </li></ul><ul><li>Powerful differentiation, positioning and branding </li></ul><ul><li>Effective marketing planning process </li></ul><ul><li>Long-term integrated marketing strategies </li></ul><ul><li>Institutionalized creativity and innovation </li></ul><ul><li>Total supply chain management </li></ul><ul><li>Market-driven organizational structures </li></ul><ul><li>Careful recruitment, training and career management </li></ul><ul><li>Vigorous line management implementation </li></ul>
  25. 25. References <ul><li>Understanding Brands </li></ul><ul><ul><li>Peter Cheverton </li></ul></ul><ul><ul><ul><li>The Sunday Times Series </li></ul></ul></ul><ul><li>Brands and Branding </li></ul><ul><ul><li>Articles by Experts </li></ul></ul><ul><ul><ul><li>The Economist </li></ul></ul></ul><ul><li>A New Brand World </li></ul><ul><ul><li>Scott Bedbury </li></ul></ul><ul><ul><ul><li>Ex-marketing chief of Nike and Starbucks </li></ul></ul></ul><ul><li>Analytics at Work </li></ul><ul><ul><li>Thomas H Davenport, Jeanne G Harris </li></ul></ul><ul><li>Words that Work </li></ul><ul><ul><li>It is not what you say, it’s what people hear </li></ul></ul><ul><ul><ul><li>Dr Frank Luntz </li></ul></ul></ul><ul><li>Strategic Brand Management </li></ul><ul><ul><li>Building, Measuring and Managing Brand Equity </li></ul></ul><ul><ul><ul><li>Kevin Lane Keller </li></ul></ul></ul><ul><li>Marketing Payback </li></ul><ul><ul><li>Robert Shaw & David Merrick </li></ul></ul>
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