20. BRANDCONSTRUCTION
Classified - Internal use
What the product is and does for me
FUNCTIONAL
How I want to feel in this occasion
EMOTIONAL
PRODUCTIONQUALITY ↑
RESEARCHQUALITY ↑
SKUS ↑
COPYCATTING ↑
IDENTITYPLAY ↑
LOYALTY ↓
SHARE ↓
23. NEWBRANDCONSTRUCTION
SOCIAL&CULTURAL
Cares for my
wellbeing and the
wellbeing of my family
Cares for the wellbeing
of my community
Cares for the wellbeing of the planet
What the product is and does for me
FUNCTIONAL
How I want to feel in this occasion
EMOTIONAL
28. BRANDS Better, cheaper
Less different products
Desired society
PEOPLE
More powerful
More concerned for
wellbeing of self & others
Society growing more
powerful vis-à-vis
corporations & government
CORPORATIONS
More integrated in daily life
Seen as causing social &
environmental harm
New Strategy: trusted ally for
achieving our desired society
I grew up here in California -- in the San Francisco Bay Area. Palo Alto to be exact.
The Bay Area was the birthplace of two very distinct cultural – Haight-Ashbury Hippies and Silicon Valley Nerds. I am a child of both of these. Literally.
Cultural forces drive market forces.
While there is much interaction amongst cultural forces, they generally start with macroforces driving people trends with these two forces causing trends in human institutional groupings, most notably governments, corporations and NGOs.
According to our DNA model all decisions should include macroforces and trends.
Side bar: Frank Luntz, Republican researcher and advisor wrote a memo to the Bush White House about using the phrase “climate change” vs. “global warming” it’s a key reason why we all are using this as the preferred phrase today. Researchers have broad influence in how we live our lives -- and in unexpected ways. https://www2.bc.edu/~plater/Newpublicsite06/suppmats/02.6.pdf
Not all unintentional people trends are bad.
In his book The Empathic Civilization, Jeremy Rifkin sets out the proposition that as a consequence of more people being more connected to more other people (due to Facebook, Twitter, mass media, international travel, mobile phones, etc.) we are all increasing our level of empathy for others.
It’s biologically unavoidable.
We have mirror neurons that attune us to the feeling of others.
If you’ve ever been moved to tears by a movie, you know what I mean.
The key point is we all experience the same Macroforces so the net effect is widespread People Trends that become more universal every day.
Data from Table 7.3 on p149 in Thomas Piketty’s Capital
http://www.weforum.org/reports/global-risks-2014-report
More people are getting educated. And the gap between boys and girls is narrowing. There are still parts of the world where much more progress is needed, but the trend lines are all in the same direction. The world is becoming more educated.
And when people are educated, they have different views, expectations, and demands. They think, feel, and act differently. And importantly, they change their buying behaviors. How will your category be affected?
Women are good at holistic thinking, at trust based relationships where expression and therefore utility of tacit knowledge is enhanced.
Trust requires expressing vulnerability as per Brene Brown
In a rapidly changing environment the more trust based relationships you have the better – women have more than men.
Longterm relationships over short term transactions
adopt a much more holistic approach, seeking out the patterns and deep dynamics that shape broader more complex systems
Rich more nuanced communication skills.
Adapt vs control is a much better strategy in a fast-changing world
Key insight: as people grow into the middle class, their confidence grows.
Like gaining weight due to cheaper more abundant food choices and to conveniences that require less exertion and less time spent moving. This is an example of a People Trend that is less a purposeful choice and more a consequence of our changing world.
63% of all deaths – chiefly cardiovascular diseases, cancers, chronic respiratory diseases and diabetes $30 trillion over the next two decades
Global findings
o The Meaningful Brands Index outperforms the stock markets by 120% - an out performance on par with the top hedge funds
o The majority of people worldwide wouldn't care if 73% of brands disappeared tomorrow.
o Only 20% of brands worldwide are seen to meaningfully positively impact people's lives.
o Brands gaining momentum this year include Nike, Mercedes Benz, Adidas and Dove.
o Brands continuing to flourish include Walmart, Microsoft, P&G and Samsung.
o 2013 shows an increase in the importance of the ITC sector.
o Brands such as Petrobras in Brazil, EDF in France and Repsol in Spain are breaking sector barriers and gaining increasing levels of meaning.
“Companies have gotten so locked into a particular cadence of competition that they appear to have lost sight of their mandate--which is to create meaningful grooves of separation from one another. Consequently, the harder they compete, the less differentiated they become…Products are no longer competing against each other; they are collapsing into each other in the minds of anyone who consumes them.“ Source: http://blogs.hbr.org/taylor/2010/05/why_being_different_makes_all.html
This is the core of virtually all brand architectures. It’s decades old and whether its in the form of a triangle, house, stool or onion, it’s pretty much how most marketers conceptualize their brand.
Functional parity at a high level is the norm in most categories. This is the result of decades of automation, computerization, Six Sigma, TQM, etc.
Marketers have tried to counter the brand switching that functional parity has wrought by perfecting their ability to identify and convey “emotional benefits” or “brand personality.” This was a great brand management strategy right on up through the first part of this current century when savvy market researchers helped marketers identify the very small set of emotional positionings that most effectively drive volume within any given category. Teen brands are about fun and friends. In general, the differences between brands have narrowed to a small sets of emotional positionings that even when distinct, they are distinct but equally desirable. Emotional benefits, while still important, have lost their ability to command loyalty. Brands need to offer more than great functional and emotional benefits. And that something more is becoming clearer in category after category.
There are just so many John Mackeys and Tony Hsiehs in the world and most us work for CEOs that are necessarily more Wall Street and Board of Directors oriented. This means we have to find our brands’ social and cultural attributes using a more methodical approach.
IKEA released its 2013 Sustainability Report this week, and the results in theenergy arena are pretty impressive. The company continues to follow through on its commitment to develop and own renewable electricity supplies, with a 2020 goal of producing more energy than it uses. IKEA has numerous other sustainability-related goals, and is expanding its offerings to customers as well.
I spoke on the phone with Chief Sustainability Officer Steve Howard to discuss IKEA’s aims, its overall approach to the issue of sustainability, and what the future may hold. One thing that was clear from the outset: IKEA is committed to ‘future proofing’ its company, and is proactively anticipating many of the challenges to be faced in the coming years. Howard commented that values are critical to the entire endeavor. If you start with a values-driven point of view, you can make abusiness case. Climate change and energy security mean you have to have a radical approach. We need a six, seven, or eight-fold decrease in carbon intensity http://www.forbes.com/sites/peterdetwiler/2014/02/07/ikeas-aggressive-approach-to-sustainability-creates-enormous-business-opportunities/
The new – mission lead brands (on the right) get this intuitively. It is build into their brand DNA from day one.
What most of today’s established, leading consumer brands need to do is append the S&C layer to their existing brand architecture.
Pierre Bourdieu Distinction
Coke and other firms make the business case for aiding world's poorest
Nov 14, 2014 Guardian article about Net Impact Conference
http://www.theguardian.com/sustainable-business/2014/nov/14/role-business-development-coke-cargill-cocoa-water-ghana-africa-asia?CMP=share_btn_tw
5by20 Empowering five women entrepreneurs by 2020. This is another SBM that make us money while they simultaneously enhance the wellbeing of a segment of society. Everybody knows The Coca-Cola Company wants to make money, but when we do it in a way that helps the unemployed in Brazil’s favelas, or five million women who seek to become entrepreneurs, or those who live without easy access to clean water, electrical power or reliable communications in countries throughout the world, people find it very easy to believe “Coca-Cola cares and acts for the wellbeing of others as much as they do their own.”
Global findings
o The Meaningful Brands Index outperforms the stock markets by 120% - an out performance on par with the top hedge funds
o The majority of people worldwide wouldn't care if 73% of brands disappeared tomorrow.
o Only 20% of brands worldwide are seen to meaningfully positively impact people's lives.
o Brands gaining momentum this year include Nike, Mercedes Benz, Adidas and Dove.
o Brands continuing to flourish include Walmart, Microsoft, P&G and Samsung.
o 2013 shows an increase in the importance of the ITC sector.
o Brands such as Petrobras in Brazil, EDF in France and Repsol in Spain are breaking sector barriers and gaining increasing levels of meaning.
This ad reflects the current reality of ethnic diversity in America. While most responded positively, some who saw it aired during the 2014 Superbowl reacted negatively. For an insightful reflection on why this might be so, please see http://thenarcissisticanthropologist.com/tag/coca-cola/