Branding & Positioning
Tuesday, 7 november 2013
Agenda

-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand?
-How to build an efficient Brand arc...
THoM „s 3 main service offerings

Temporary Marketing
Support

Marketing Consultancy

Marketing Talent
Development

To bri...
What are your expectations of today?

4
Brands in the FACTS vision

5
Crisis
Marketing overload
Keuzestress

Short term tactics
.....
Credibility van marketeer onder vriespunt onderzoek reader...
Marketing tactics don‟t build long term brand equity
Expected budget evolutions for tactics
Direct Marketing
Direct Market...
THoM believes marketing should become more FACTS
Strategic consistency
Brand consistency
Simplicity & relevance
Customer c...
FACTS revises the way marketers deal with brands

• Strategic consistency

• Brand consistency
• Simplicity & relevance
• ...
Agenda

-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand?
-How to build an efficient Brand arc...
What is a brand?

11
A brand is not .....

12
... And not .....

13
.... And not ....

14
A brand is a world of experiences

15
Question

Which elements define the brand Carrefour?

16
The quality of goods

The personnel
The claim/promise

The logo

Tone of voice
The
pricing

The shops

.............
The c...
So, what is a brand?

 A promise between a company and its
customers …

 … of emotional and functional benefits around
p...
Lovemarks put more focus on the emotional bonds
because these create “loyalty beyond reason”
(Saatchi & Saatchi philosophy...
Agenda

-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand ?
-How to build an efficient Brand ar...
Remark: Terminology might be confusing and complex:
simplify and align!

The brand mission

The brand
values/principles

T...
The brand is not a marketers responsiblity only....

But it is his responsibility
to make it through
and to keep the brand...
What is the company strategy?

Michael Treacy & Fred Wiersema
23
Come to a strong brand is an intense process with though
criteria, where multiple stakeholders have to be involved

Is it ...
Do we still need a USP?
YES, WE DO!
• Not necessary on product level: Service, Tone of
voice, Waranty, Emotional benefit, ...
The process to come to a strong positioning is always
similar, but the methodology is quite different

« Innovative
Discov...
Case: NIBC, an exisiting company new in Belgium

Dutch online saving bank
« Innovative
Discovery »

Desk research
Online c...
Tempo Team: an existing brand in an international
environment
Interim provider
« Innovative
Discovery »

Belgian Interview...
Remind the FACTS criteria

simplicity
relevance
consistency

30
Simplicity requires “making choices”

31
Relevance is key in the “new world”

A marketer has to ask himself the questions:
• What is the meaning of my company/bran...
Once defined the brand positioning, consistency is
essential
Consistency implies longer term thinking
•
•
•
•
•

Approved ...
Example of not being consistent

•
•
•
•

2007: Choice, price, quality, ¼ heure d‟avance. En alles is mogelijk.
2008: Simp...
Question

Which to you are strong and consistent brands?

35
Agenda

-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand?
-How to build an efficient Brand arc...
The existing models

37
The brand architecture is linked to the heritage, the
evolution of the company and the company objectives
-Check how the c...
For endorsed brands, the positioning of the mother brand is
key

Focus on hardware? Which category? Or focus on content?
B...
Does a single brand have its limits ?
How many line extensions can a brand support?

40
Line extensions have to fit with the brand‟s positioning and
USP
Brand
Positioning & USP

Product

Product

Product

…

A ...
In the beginning, there was … the Dove soap bar

42
brand

Years later, the Dove brand has many extensions, all
communicating the Dove USP

Extensions

product

¼ hydrating c...
Nivea went too far and removed the beauty range

44
In a House of brands, every brand needs it‟s own
positioning and own USP

Company

Brand

Brand

Brand

…

Brand positioni...
In a House of brands, every brand needs it‟s own
positioning and own USP
In a House of brands, every brand needs it‟s own
positioning and own USP
Volkswagen Group
Agenda

-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand?
-How to build an efficient Brand arc...
Question

To which brands are you loyal and why?

50
100% loyalty is out. Divided loyalty is in.
•Loyalty programs have become a commodity
•Forget the “old school” rules
•Focu...
The combination of a penetration and a loyalty strategy is
necessary and asks for a dual marketing approach
Combined strat...
Agenda

-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand?
-How to build an efficient Brand arc...
68
Question

What is the brand value of the top 3 best global brands 2013?
(Apple, Google, Coca-Cola)

69
There are many brand equity measuring
5

1

Brand awareness

Customer satisfaction
(satisfaction looking backward)
- Perce...
Brand awareness

“Push to add drama”: viral marketing to create brand
awareness for .....
TV channel TNT

72
Brand preference

Question

What do you do when Duracell batteries are
out of stock at Carrefour?

73
Perceived quality

Perception is everything in the value creation of a brand

74
Perceived brand identity

Louboutin has a high brand equity

Differentiation
Relevance
Knowledge
Esteem

75
Customer satisfaction

Ryanair is committed to address its reputation for poor
customer service
DESCRIPTION
Ryanair will m...
Recommendation

The Net Promotor Score measures attitudinal loyalty

Question

• Have you or would you ever recommend … to...
Loyalty

low

Involvement

high

Loyalty is driven by two dimensions:
switching barriers and involvement

low

high

Switc...
Loyalty

Keep the switching barrier high to prevent the customer
from changing brands
• Nespresso‟s coffee machine could o...
The future of brands: some critical questions and insights

80
Discussion?

Will brands continue to exits in FMCG?
Who is the brand owner? The customer or the company?
Which brands will...
Join us at our Meet & Greet!

„Rodins‟, Oude Markt 24, Leuven

12/11/2012 – 19h00
Subscribe via:

www.thom.be/meet-greet

...
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Branding and positioning training kul nov 2013

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  • We then asked marketers what their expectations were for the budget evolution of various tactics; this is a question we also put last year; you have the figures of 2012 in red and those of this year in dark yellow; let me insist here: the figures do not show the expected growth or decline of the budget, they show how many more respondents expect an increase (right part) or a decrease (left part) of a given tactic. For instance if for a given tactic 50% of the respondents expect a stability, 30% a growth and 20% a decline, that tactic will be on the right side with a + 10% figure. Like last year, there are more bars on the “decrease expected” side than on the “increase expected” one – this is consistent with the negative Marketing Confidence Index.Marketers expect Direct Marketing and Brand Activation agencies to have a good year.Other striking elements are the expected stability of image campaigns, the negative outlook for sponsoring (in line with last year), and an expected decline for trainings and congresses – and I believe that those in the room who have been or are organising a congress or are in the training business will know about that.
  • VisionA clear, concise, compelling statement that provides direction and guide business activities - What do we want to be?MissionThe purpose of the business including its products, its customers and where it operates – What do we want to do, What business are we in?Values5 to 7 key attributes of the culture designed by the business. They provide guidance on how work is expected to be done in the business and they are expressions of the beliefs and values that drive a company’s behavior and culture – What behaviors do we utilize to accomplish our mission, What are the fundamentals of the organization?Guiding PrinciplesThese are the techniques the company deploys to do its work. – What operating principles must we use to win?Brand PersonalityThis is about the characteristics of the brand, describing the brand as if it were a person. These characteristics are what the brand is about, how customers should perceive it, which values can be coupled to it and what image you want it to have.Principles- sustainable in time (<-> values)- guiding principles- convictions kind of laws of naturePurposeExplains why you do the things you doReason to be/why of the brandGive perspective/relation to stakeholders≠mission: related to company, not related to the bigger pictureVision- How you look to the world of today & tomorrow
  • Melk, en je kan tegen een stootje, nu gewoorden: een kracht an de natuurHumo: compleet veranderd van stijl deze week in humo verlatenDe standaard: verwacht het onverwachte, was onverantwoord interessant ....
  • Pantene: shiny hair, thus healthy hair (Pro V)H&S: anti dandruff shampoo – removes dirt & oil from hair follicles (gevaar oplangetermijn?)Herbal essences: more natural (in comparison to other shampoos that are more chemical)Wella: professional hair care
  • So in fact, building loyalty is about the basics: work on relevance, improve experience....Involve te customer: I think we’re overestimeting the interest of customers in brands.
  • 53% van de Sensodyne users buy Colgate46% of the Colgate users buy Aquafresh...72% of the Pesdrinkers buy CocaCola....Once or more every 12 monthsMartin Hammer ‘YOURCONSUMERS’AREJUSTSOMEBODYELSE’SCONSUMERSWHOOCCASIONALLYBUYYOUPeople are loyal to a group of productsDevided loyalty: consumer buy different brandsTake care of the basics (experience, needs)Old school rules: gaining a new customer costs 5 times mre than keeping a customerDus het enige wat werkt is de switching barriers hoog houden (vb legaal,vb Nespresso ) maar vooral het involvement (Pampers, Nike) hoog houden
  • 53% van de Sensodyne users buy Colgate46% of the Colgate users buy Aquafresh...72% of the Pesdrinkers buy CocaCola....Once or more every 12 monthsMartin Hammer ‘YOURCONSUMERS’AREJUSTSOMEBODYELSE’SCONSUMERSWHOOCCASIONALLYBUYYOUPeople are loyal to a group of productsDevided loyalty: consumer buy different brandsTake care of the basics (experience, needs)Old school rules: gaining a new customer costs 5 times mre than keeping a customerDus het enige wat werkt is de switching barriers hoog houden (vb legaal,vb Nespresso ) maar vooral het involvement (Pampers, Nike) hoog houden
  • 53% van de Sensodyne users buy Colgate46% of the Colgate users buy Aquafresh...72% of the Pesdrinkers buy CocaCola....Once or more every 12 monthsMartin Hammer ‘YOURCONSUMERS’AREJUSTSOMEBODYELSE’SCONSUMERSWHOOCCASIONALLYBUYYOUPeople are loyal to a group of productsDevided loyalty: consumer buy different brandsTake care of the basics (experience, needs)Old school rules: gaining a new customer costs 5 times mre than keeping a customerDus het enige wat werkt is de switching barriers hoog houden (vb legaal,vb Nespresso ) maar vooral het involvement (Pampers, Nike) hoog houden
  • Iemand heeft een filmpje geplaatst waarin elektrische auto van Tesla in brand schiet. Men vertelde dat dit aan batterij van de auto lag, maar in realiteit heeft chauffeur iets verkeerd gedaan. Hierdoor is de perceptie van de kwaliteit van de Tesla’s auto serieus gedaald, hetgeen een enorme impact had op market value.
  • http://uwmktg301.blogspot.be/2010/03/brand-equity.html
  • Branding and positioning training kul nov 2013

    1. 1. Branding & Positioning Tuesday, 7 november 2013
    2. 2. Agenda -Branding in the FACTS vision -What is a brand? -How to build a strong brand? -How to build an efficient Brand architecture -What about brand loyalty? -How to create value for your brand -The future of brands: some critical questions and insights 2
    3. 3. THoM „s 3 main service offerings Temporary Marketing Support Marketing Consultancy Marketing Talent Development To bridge Capacity & Competence gaps To tackle strategic marketing challenges To develop, counsel & train marketers on the job 3
    4. 4. What are your expectations of today? 4
    5. 5. Brands in the FACTS vision 5
    6. 6. Crisis Marketing overload Keuzestress Short term tactics ..... Credibility van marketeer onder vriespunt onderzoek readers digest credibility advertising industry 6
    7. 7. Marketing tactics don‟t build long term brand equity Expected budget evolutions for tactics Direct Marketing Direct Marketing 18% 19% Brand Activation Brand activation 15% 3% Instore marketing -6% Guerilla marketing Image campaigns Image campaigns -1% -3% -4% -12% Sampling -4% Gamifaction -5% Product placement -8% -13% Events and trade fairs -15% Sponsoring -37% Sponsoring -19% Congress/trainings Congress / training #YMS2013 6% 3% -28% Others Public relations 18% -19% 2% -30% 2012 Net difference (%increase-%decrease) 7 2013 Net difference (%increase-%decrease) N=207
    8. 8. THoM believes marketing should become more FACTS Strategic consistency Brand consistency Simplicity & relevance Customer centricity Build knowledge Focused team continuity • • • • • • • • • • • • Detect trends & act Early warning systems & processes Agile & up to date organization Built around customer engagement Willingness to change Flexibility & Speed • • • • Innovative company culture Diversity of profiles Idea generation Idea valuation Porosity & open-mindedness • • • • • • KPI’s & dashboards Scenario analysis & ROMI Connect with marketing intelligence Analytical culture & skills • People: yours & every stakeholder • Planet: ACT on innovation, packaging, promotion... • Profit: business-minded marketers 8
    9. 9. FACTS revises the way marketers deal with brands • Strategic consistency • Brand consistency • Simplicity & relevance • Customer centricity • Build knowledge • Focused team • Continuity 9
    10. 10. Agenda -Branding in the FACTS vision -What is a brand? -How to build a strong brand? -How to build an efficient Brand architecture -What about brand loyalty? -How to create value for your brand -The future of brands: some critical questions and insights 10
    11. 11. What is a brand? 11
    12. 12. A brand is not ..... 12
    13. 13. ... And not ..... 13
    14. 14. .... And not .... 14
    15. 15. A brand is a world of experiences 15
    16. 16. Question Which elements define the brand Carrefour? 16
    17. 17. The quality of goods The personnel The claim/promise The logo Tone of voice The pricing The shops ............. The communication: folders, tv commercials, emailing, DM... Nowadays, a brand has an The shoppers The instore uncountable number of “brand drivers” navigation The promotions The evolution The parking The casiers CSR/sustainabilitty policy The private labels The loyalty card The caddies The help desk The assortment The opening hours 17
    18. 18. So, what is a brand?  A promise between a company and its customers …  … of emotional and functional benefits around products, services, image and experience in the large sense 18
    19. 19. Lovemarks put more focus on the emotional bonds because these create “loyalty beyond reason” (Saatchi & Saatchi philosophy ) “The essential difference between emotion and reason is that emotion leads to action while reason leads to conclusions.” Donald Calne, Neurologist 19
    20. 20. Agenda -Branding in the FACTS vision -What is a brand? -How to build a strong brand ? -How to build an efficient Brand architecture -What about brand loyalty? -How to create value for your brand -The future of brands: some critical questions and insights 20
    21. 21. Remark: Terminology might be confusing and complex: simplify and align! The brand mission The brand values/principles The brand vision The brand personality The brand purpose The brand equity The brand The brand promise or brand positioning The brand story 21
    22. 22. The brand is not a marketers responsiblity only.... But it is his responsibility to make it through and to keep the brand promise towards his customers • Ambler, 2000, Agile Marketing: A holistic view on marketing “Marketing is what the whole company does, not just marketers. More organizations have understood that brand leadership requires a strong alignment between the promise of the brand and the delivery of the brand. To do this, every function needs to be coordinated both by ensuring that marketing only makes promises that the organization can keep, and that the organization then actually keeps the promises. 22
    23. 23. What is the company strategy? Michael Treacy & Fred Wiersema 23
    24. 24. Come to a strong brand is an intense process with though criteria, where multiple stakeholders have to be involved Is it relevant? Is it unique? Brand Positioning or Brand promise Is it sustainable? Fit with equity of today? 24
    25. 25. Do we still need a USP? YES, WE DO! • Not necessary on product level: Service, Tone of voice, Waranty, Emotional benefit, Brand involvement • Fons Van Dijck/Herman Toch: functional benefit might work better for knows and strong brands, emotional benefits for new brands • Check competition! 26
    26. 26. The process to come to a strong positioning is always similar, but the methodology is quite different « Innovative Discovery » Conventions Mega-Trends Value Engines Core Competencies Customer Insights « Positioning Building » Divergence: Generate new Branding Opportunities 27 « Implementation Roadmap » Convergence: Define your positioning space… « Idea Gen » Determine growth platforms and next steps
    27. 27. Case: NIBC, an exisiting company new in Belgium Dutch online saving bank « Innovative Discovery » Desk research Online consumer Research Belgian key insights Competitive analysis « Positioning Building » « Idea Gen » Workshop “Admoods” -Look at commercials -Talk about benefits/ tone of voice/cornerStones -Select top 3 -Agreement THoM gathered all insights and bundled them in a brand positioning which was discussed and agreed in the board 28 « Implementation Roadmap » Go to Market Plan Selection of agency
    28. 28. Tempo Team: an existing brand in an international environment Interim provider « Innovative Discovery » Belgian Interviews International itv‟s Collect “stories” Int‟l workshop Define different Concepts Destill int‟l positioning concepts Competitive analysis « Positioning Building » « Idea Gen » Select relevant Belgian concepts Workshop including Homework (incl brand Associations to gather insights,benefits...) -Presentation of strong brand cases Reflect on TT & select top 3 benefits & Characteristics 29 THoM gathered all insights and bundled them in a brand positioning which was discussed and agreed in the board « Implementation Roadmap » Go to Market Plan for specific Target groups Int‟l approval (on going)
    29. 29. Remind the FACTS criteria simplicity relevance consistency 30
    30. 30. Simplicity requires “making choices” 31
    31. 31. Relevance is key in the “new world” A marketer has to ask himself the questions: • What is the meaning of my company/brand for the customer? • Does this make the life of my customer easier? Do I add value? • How can I realize this in a differentiating way from the compeition? Herman Toch, Transformeren om te overleven, 2012, customers ask following questions before they choose you (and keep on chosing you) 1. Does the brand care about me? 2. Does the brand really tries to make things better for me? 3. Can I really trust your brand? 4. Does the brand try to make my world a better place? 5. Do I get a voice? 32
    32. 32. Once defined the brand positioning, consistency is essential Consistency implies longer term thinking • • • • • Approved positionings (incl external partners) Marketing initiatives has to support the positioning Consistency in all media Consistency in all distribution channels Visual consistency 33
    33. 33. Example of not being consistent • • • • 2007: Choice, price, quality, ¼ heure d‟avance. En alles is mogelijk. 2008: Simplicity. Zo eenvoudig kan het leven zijn 2009: Price. Pouvoir d‟achat. 2010: Choice. Blij met je keuze. 34
    34. 34. Question Which to you are strong and consistent brands? 35
    35. 35. Agenda -Branding in the FACTS vision -What is a brand? -How to build a strong brand? -How to build an efficient Brand architecture -What about brand loyalty? -How to create value for your brand -The future of brands: some critical questions and insights 36
    36. 36. The existing models 37
    37. 37. The brand architecture is linked to the heritage, the evolution of the company and the company objectives -Check how the company was founded -Check what the objectives are - Focus on specifiek target group - All households? - Sustainable house holds? - Price sensitive house holds? -Check the growth strategy (mergers...) - F.i. The Volkswagen group 38
    38. 38. For endorsed brands, the positioning of the mother brand is key Focus on hardware? Which category? Or focus on content? Big loss of MS in televisions, gaming, .... Recent evolution....focus on “entertainment”..... 39
    39. 39. Does a single brand have its limits ? How many line extensions can a brand support? 40
    40. 40. Line extensions have to fit with the brand‟s positioning and USP Brand Positioning & USP Product Product Product … A product extension borrows from the mother brand and gives back Product extension 41
    41. 41. In the beginning, there was … the Dove soap bar 42
    42. 42. brand Years later, the Dove brand has many extensions, all communicating the Dove USP Extensions product ¼ hydrating cream … 43
    43. 43. Nivea went too far and removed the beauty range 44
    44. 44. In a House of brands, every brand needs it‟s own positioning and own USP Company Brand Brand Brand … Brand positioning Brand positioning Brand positioning … USP USP USP …
    45. 45. In a House of brands, every brand needs it‟s own positioning and own USP
    46. 46. In a House of brands, every brand needs it‟s own positioning and own USP Volkswagen Group
    47. 47. Agenda -Branding in the FACTS vision -What is a brand? -How to build a strong brand? -How to build an efficient Brand architecture -What about brand loyalty? -How to create value for your brand -The future of brands: some critical questions and insights 48
    48. 48. Question To which brands are you loyal and why? 50
    49. 49. 100% loyalty is out. Divided loyalty is in. •Loyalty programs have become a commodity •Forget the “old school” rules •Focus on light users and penetration “Your consumers are just somebody else‟s consumers who occasionally buy you” Martin Hammer #YMS2013 58
    50. 50. The combination of a penetration and a loyalty strategy is necessary and asks for a dual marketing approach Combined strategy and approach Penetration growth & Existing customers might buy the brand more often New customers might buy the brand Mass Marketing Loyalty growth & Reach all the buyers, including the occasional, light buyers and non-buyers Target Marketing Reach all the heavy users Most effective campaigns aim at new AND existing customers. A company is successful when it targets light users AND heavy users. 59
    51. 51. Agenda -Branding in the FACTS vision -What is a brand? -How to build a strong brand? -How to build an efficient Brand architecture -What about brand loyalty? -How to create value for your brand? -The future of brands: some critical questions and insights 67
    52. 52. 68
    53. 53. Question What is the brand value of the top 3 best global brands 2013? (Apple, Google, Coca-Cola) 69
    54. 54. There are many brand equity measuring 5 1 Brand awareness Customer satisfaction (satisfaction looking backward) - Perceived product performance - Perceived service performance - Perceived channel performance - Perceived total customer experience 2 Brand preference 3 Perceived quality 4 Perceived brand image/identity (e.g. leadership, trust, innovation, …) 6 Recommendation These drivers constitute a brand equity index, but their weights are industry-specific and dynamic (changing customer patterns) 6 Loyalty (satisfaction looking forward) 71
    55. 55. Brand awareness “Push to add drama”: viral marketing to create brand awareness for ..... TV channel TNT 72
    56. 56. Brand preference Question What do you do when Duracell batteries are out of stock at Carrefour? 73
    57. 57. Perceived quality Perception is everything in the value creation of a brand 74
    58. 58. Perceived brand identity Louboutin has a high brand equity Differentiation Relevance Knowledge Esteem 75
    59. 59. Customer satisfaction Ryanair is committed to address its reputation for poor customer service DESCRIPTION Ryanair will make interactions with customers easier in the future: • Booking tickets with a new process • Returning customers will be able to complete bookings faster • Contacting the firm more easily if there are problems This will be backed up by a new digital marketing strategy: more investments in new media OBJECTIVES • Shake off its reputation for poor customer service • Increase customer satisfaction Source: MarketingWeek – Ryanair overhauls digital strategy to focus on mobile and social media 76
    60. 60. Recommendation The Net Promotor Score measures attitudinal loyalty Question • Have you or would you ever recommend … to others? • 10 point scale 1 2 3 4 5 6 7 8 9 10 Responses Detractors Calculation Neutral # Promoters - # Detractors # Respondents 77 Promoters
    61. 61. Loyalty low Involvement high Loyalty is driven by two dimensions: switching barriers and involvement low high Switching barriers 78
    62. 62. Loyalty Keep the switching barrier high to prevent the customer from changing brands • Nespresso‟s coffee machine could only be filled by Nespresso capsules, which were only available online and in exclusive shops • Consumers didn‟t have the choice and were attached to the brand BUT: • Douwe Egberts duplicated the capsules, which can also be used in the Nespresso machines and are available in the supermarkets • Nespresso‟s switching barriers decreased: consumers can now easily switch between Nespresso and Douwe Egberts • Nespresso will need to continue working on involvement 79
    63. 63. The future of brands: some critical questions and insights 80
    64. 64. Discussion? Will brands continue to exits in FMCG? Who is the brand owner? The customer or the company? Which brands will survive? What about sustainability? 81
    65. 65. Join us at our Meet & Greet! „Rodins‟, Oude Markt 24, Leuven 12/11/2012 – 19h00 Subscribe via: www.thom.be/meet-greet 82
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