2. AIM
* rules of thumb general principles with broad applications that are not intended to be strictly accurate for every situation.
To help you derive
your branding direction.
7 rules of thumb*
to help you look within
your business for an epiphany...
4. #1 Core Competencies
The earlier a brand acquires or develops its CCs,
and/or the more CCs it has, the more likely it will
lead & outgrow its competition within the next 3-5 yrs.
Status Quo (D) Mid-Game (usu. D+3 yrs) End Game (usu. D+5 yrs)
Core
Competencies
Special Products/Services
Automation
(Internet+)
Big Data
Fame-for-Gain
Strategy
Government
Unique Sci-Tech
Marketing
&
Sales SOP
HR Society & NGOs
Special Relationships Process Enterprises
Knowledge System Systems Target Markets
High Brand Awareness Financial Ops Individuals
5. #2 Brand Architecture
Brand Architecture
Types
Examples Comments
Masterbrand IKEA, BMW 3/5 Series, FedEx Freight, FedEx
Express, Yamaha Music, Yamaha Motor
Brands belonging to Large-scale
Enterprises (LEs), high confidence level
Endorsed Brand McCafe, Ford Focus, Sanyo Kelong, Buick by GM,
Jinliufu (Wuliangye), Universal Picture, A Sony Co.,
Infiniti (Nissan)
Need help from Endorser Brands for
speedy market recognition
Sub-Brand Unilever Red Tea: Lipton, P&G Shampoo: Rejoice
(Soft)/ Pantene (Nutrients)/ Head & Shoulder (Anti-
dandruff), P&G Men's Facial: Gillette, Shanghai
Jahwa: summer skin problems: Liushen (Six God),
Nestle Maggie, Intel+Dell
Used by products with higher risks (fear
of domino effects). Used by products
that wish to enter segmented markets
with fresh appeals. Used frequently by
FMCG and F&B.
The better defined a brand position is, the easier it is
to decide which brand architecture to apply.
6. #3 Product Consumption Speed
Speed of
Consumption
Marketing Strategies
To Be Adopted
Primary Brand
Communication
Touchpoints
Brand Values
To Accentuate
Fast 4P+4V Online
Emotional Values
Symbolic Values
Medium 4P+Partial 4V & 4R Depends Depends
Slow 4P+4R Events Functional Values
The faster your products move (consumed), the more
online marketing and more emotional & symbolic
values you should use in your brand communications.
Note: Not applicable to 3rd-tier cities & below
7. #4 Product Development
Product Development
Strategies
Examples
Specialization
Barber Shop: provides barber haircut & services directly related to
barber haircut.
Differentiation
Beauty Centre: from hairdressing to deeper & broader product mixes
like facial treatments, body massages, detoxification services etc.
Marginalization
Goldlion: from ties to marginally related products (used by the same
target customers), like wallets, luggage bags, fashion apparels etc.
Diversification
Yamaha: multi-product, multi-industry strategy with very different
product ranges for different industries, e.g. music instruments, motor
cycles, sports equipment etc.
The better the sales are, the more you should consider
a product upgrade. Do not wait until it is saturated.
Note: An industry's economic life cycle phases—emergence/ growth (upgrade products here) /matured (saturation)/ decline periods
8. #5 Midstream B2B Branding
B2B Product Types Brand Upgrade Options Examples
Finished Products Dual brand Mengniu & Tetra Pak
Parts
Critical part Intel+Dell
Non-critical part Michelin
Raw Materials
Go downstream Swarovski
Critical ingredients Schott
Branded raw materials Invista > Lycra
OEM Produce the same products they OEM for 361, Anta
* E.g. competitor price wars, client margin squeeze, helplessness in the face of market volatility, brand oblivion etc.
The sooner a B2B entity co-brands with an end-user
product downstream, the sooner it gets out of the
midstream rut *, and starts to build a real brand.
9. #6 Market Brand Appeals
The lower the city tiers, the lower the [consumer]
appreciation for a brand’s emotional/symbolic values.
1st-tier cities require a “divide & conquer” strategy.
Markets by
City Tier
Brand Appeals Brand Values
To AccentuateTypes Descriptions
1st Segmented brand appeals Individualized customer-centric Emotional, Symbolic
2nd
Segmented brand appeals Individualized customer-centric Emotional, Symbolic
Singular brand appeals Belief-based Functional, Emotional
3rd
Singular brand appeals Belief-based Functional, Emotional
Value vs Benefit brand appeals Market value-based Functional
4th
& below Value vs Benefit brand appeals Market value-based Functional
10. #7 Brand Equity Growth
The longer a brand has been around, the more
you should brand it for “fame” and “depth”
(as opposed to branding it for direct gains).
Yrs of Ops Terms Key Branding Activities Key Brand Equities
1-3 Early Simple branding Brand Awareness
4-6 Early-Mid Aggressive & precise branding Perceived Brand Qualities
7-12 Mid Break through brand impasse
Brand Loyalty
(Brand Reputation)
>12 Matured
Brand PR to upkeep
(1) Premium Pricing
(2) Sustainable Growth (Sales)
Brand Associations
12. Core Competencies 3.0: Special Identity—Be
The Hub For All Stakeholders
Fame-for-Gain Strategy. Now that the biz could
systematically generate profits, keeping
stakeholders happy (see below) , so that they
remain fond of us, will be all it takes to keep the
goodness going.
• Govt: help fulfil its corporate/social goals
• Society: create progress for the society
• NGOs: let people know about these NGOs,
raise their awareness
• Enterprise: for fame & gain
• Tgt Market: create strong brand associations
• Individuals: Satisfy their spiritual needs
Strategic Outlook
Yr
1
3
5
Core Competencies 1.0:
• Special Products/Services
• Unique Sci-Tech
• Special Relationships
• Knowledge System
• High Brand Awareness
Aim for the End Game, set eyes
on the Mid-Game, and do these:
• BP, ABMP, ABME, build team,
build platform & channels*
Status
Quo
End
Game
Core Competencies 2.0: 「Automation /
Internet+Industry+Big Data 」Profit-
making Work Model & System
Establish SOP & train HR. Blend the
platform, Big Data, team, products &
services, users and so on to form a profit-
making work model & system.
Mid-
Game
* Note: BP = Brand Positioning, ABMP = Annual Brand Marketing Planning, ABME = Annual Brand Marketing Execution
13. Brand Architecture (Full)
Brand Architecture Types Examples
Masterbrand
Single Brand
Standalone IKEA
Series BMW 3 Series, 5 Series
Family Brand
Marginalized FedEx Freight, FedEx Express
Diversified Yamaha Music, Yamaha Motor
Endorsed
Brand
Linked Name - McCafe
Explicit Endorsement
Co. + Product Ford Focus
Product + Product Sanyo Kelong
Implicit Endorsement
- Buick by GM
Flexible Endorsement Jinliufu (Wuliangye)
Token Endorsement - Universal Picture, A Sony Co.
Shadow Endorsement - Infiniti (Nissan), Lexus (Toyota)
Sub-Brand
Individual Brands
By Product Type Unilever Red Tea: Lipton
By Product Differentiation
P&G Shampoo:
Rejoice (Soft), Pantene (Nutrients),
Head & Shoulder (Anti-dandruff)
By Product Line P&G Men's Facial: Gillette
By Consumer Demand
Shanghai Jahwa: Summer skin
problems: Liushen (Six God)
Source Brand - Nestle Maggie, Ford Focus
Dual Brand - Intel+Dell
16. Notes
1 BA = Brand Appeal
2 Constituted by emotional values, symbolic values and/or spiritual values (aka ideologies)
Phase 1:
EXPLANATORY
BA1 Phase
Phase 2:
INDUSTRIAL
BA Phase
Phase 3:
TECHNICAL
BA Phase
Phase 4:
VALUE-BASED
BA Phase
Phase 5:
BELIEF-BASED
BA Phase
Phase 6:
MINDSHARE
BA Phase
Seller’s Market
Period
Economies Of Scale
Period
Excess Productivity
Period
Highly
Homogenous
Period
Value-based BA
Saturation
Period
Segmented Consumers
Satisfaction Period
(Mindshare Period)
Explain to me what
you sell, I’ll buy.
If they’re cheap &
good, I’ll buy.
If they’re cheap &
good, and technical
in nature, I’ll buy.
If the benefits are
REAL, I’ll buy it.
Technical brand
promises don’t help
I often buy from
brands with psych.
beliefs that I can
associate with.
I buy regularly from
brands that genuinely
reach out to the
“unique” me inside.
Brand Development Trends In China (1980-Present)
China is here
17. Brand Equity
David Aaker’s Brand Equity Model
KPI:
• Product—quality, functions, exterior etc
• Corporate—biz nature, op scale, culture etc
• Symbol—logo, ad slogan, ad etc
Brand Awareness
KPI:
• Aided awareness
• Unaided awareness
• Familiarity & liking
Brand Loyalty
KPI:
• Brand reputation
• Brand satisfaction
• Sales generation from new
customers from old patrons
Other Brand Assets
KPI:
• Market shares
• Channel coverage
• Premium potential
• Trademark value
Brand Associations
KPI:
• Brand impression
• Key association
• No. of brand extensions
Perceived
Brand Quality
The simple aim of this report is to help you formulate your brand directions.
I’ve prepared 7 rules of thumbs to share with you. These are the broad brush logic I use when I communicate with new clients.
By asking really simple questions, I will have a inherent feel of the brand status of my clients. Of course, verifications would happen when the projects start.