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Brand Masterclass Week Five - Developing Brand Strategy (l)

This is week five and we introduce the first of the two parts of brand strategy development. Visit www.mootee.typepad.com for notes and discussions

1 of 31
OPEN SOURCE




Session Five :
Developing a Brand Strategy (Part One)



Idris Mootee CEO Idea Couture Inc.


                                                                1
                                                       Oct 1, 2007
All brand names mentioned and logos included in this presentation are registered trademarks of their respective owners
and are legally protected. Their inclusion in this presentation is only for the purpose of illustration, criticism and
analysis.

Disclosure: Starbucks, Nike, Kitchen Aid, Jordan, Virgin, BMW, Nintendo, Crate & Barrel are clients of Blast Radius
Inc. which I was formerly employed as Senior VP and Chief Strategist. The mentioning of these names is solely for
academic purposes and should not be considered as case studies. The material here was prepared solely with public
information supported by the author’s analysis during the writing of book 60-Minite Brand Strategist which was
published in four languages. Other brand names including Levis, Apple, Mercedes Benz, Sony, Coca Cola, Macys,
Target, Daimler Chrysler mentioned here were at some point were clients of firms which I was formerly employed or co-
founded. No confidential or proprietary information were used or disclosed here
.
This series of presentation is designed to provide relevant and up-to-date information for brand and marketing
practitioners and it should not be used in marketing or rendering of professional services. Some rights reserved. Idris
Mootee 2001-2007. Presentation can be freely embedded in any website or blog under creative commons license with
prohibition of any commercial use.




                                                                                                                          2
Branding is a Business Process
Branding is a business process—one that is
planned, strategically-focused and integrated
throughout the organization. Branding
establishes the direction, leadership, clarity of
purpose, inspiration and energy for a company's
most important asset—its brand. Even the most
potentially powerful strategy will fail if not
executed effectively and consistently.




                                                    3
Everyone in the company must live up to
the brand promise —the concept is pretty
simple, but it's all-encompassing—it's about
turning every company member, product,
service, piece of communications or
interfaces into a walking, talking, touchable
reflections of the brand itself.




                                                4
A brand strategy is not the
consequences of planning, but
the opposite: it’s the starting
point. Here are the three basic
requirements:




                                  5
Requirement One:
A clearly articulated business
strategy / business plan with a
view of the scale and scope of
the business and how you want
to compete.




                                  6
Ad

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Brand Masterclass Week Five - Developing Brand Strategy (l)

  • 1. OPEN SOURCE Session Five : Developing a Brand Strategy (Part One) Idris Mootee CEO Idea Couture Inc. 1 Oct 1, 2007
  • 2. All brand names mentioned and logos included in this presentation are registered trademarks of their respective owners and are legally protected. Their inclusion in this presentation is only for the purpose of illustration, criticism and analysis. Disclosure: Starbucks, Nike, Kitchen Aid, Jordan, Virgin, BMW, Nintendo, Crate & Barrel are clients of Blast Radius Inc. which I was formerly employed as Senior VP and Chief Strategist. The mentioning of these names is solely for academic purposes and should not be considered as case studies. The material here was prepared solely with public information supported by the author’s analysis during the writing of book 60-Minite Brand Strategist which was published in four languages. Other brand names including Levis, Apple, Mercedes Benz, Sony, Coca Cola, Macys, Target, Daimler Chrysler mentioned here were at some point were clients of firms which I was formerly employed or co- founded. No confidential or proprietary information were used or disclosed here . This series of presentation is designed to provide relevant and up-to-date information for brand and marketing practitioners and it should not be used in marketing or rendering of professional services. Some rights reserved. Idris Mootee 2001-2007. Presentation can be freely embedded in any website or blog under creative commons license with prohibition of any commercial use. 2
  • 3. Branding is a Business Process Branding is a business process—one that is planned, strategically-focused and integrated throughout the organization. Branding establishes the direction, leadership, clarity of purpose, inspiration and energy for a company's most important asset—its brand. Even the most potentially powerful strategy will fail if not executed effectively and consistently. 3
  • 4. Everyone in the company must live up to the brand promise —the concept is pretty simple, but it's all-encompassing—it's about turning every company member, product, service, piece of communications or interfaces into a walking, talking, touchable reflections of the brand itself. 4
  • 5. A brand strategy is not the consequences of planning, but the opposite: it’s the starting point. Here are the three basic requirements: 5
  • 6. Requirement One: A clearly articulated business strategy / business plan with a view of the scale and scope of the business and how you want to compete. 6
  • 7. Requirement Two: Deep customer insights and understanding of evolving business economics. This requires you to look at evolving nature of different target segments and their existing and potential profitability. 7
  • 8. Requirement Three: Determine the role of branding as perceived by your corporation which will help shape many strategic brand decisions during the development process. 8
  • 9. The 7 Step Brand Strategy Development Process STEP 5 STEP 7 STEP 1 STEP 2 STEP 3 STEP 4 STEP 6 Develop a Brand Develop Brand Develop a Develop Conduct Extract Explicit Promise that Promise Brand Vision Customer Stakeholder Short and Long Translates the Delivery Model that is linked Needs Driven Analysis To Term Business Vision into by Using to the Segmentation Capture Goals as Tangible Experience Corporate or with Implicit Brand Drivers of Customer Value Mapping Business Unit Perspectives Requirements Brand Vision Business on from Key Strategy Competition Decision Develop Brand and Segment Makers Positioning, Identity Economics and Associated Images 9
  • 10. Brand Strategy Development Internal External Brand Promise Brand Vision Fixed What is our What do we commitment want our brand to customers? to become? Band Delivery Brand Positioning Variable How do we intend How do we want to be to fulfill our perceived and what’s our commitment and competitive advantages? what actions will we take? 10
  • 11. Step One Extract Explicit Short and Long Tem Business Goals as Drivers of Brand Vision The most common pitfall is many companies have no long term business strategy, at the very least, they should have an articulated description of the business such as how it creates value and how do they compete in their chosen industries. An effective strategy should act as a bridge between the past and the future. It involves judgments and decisions about when to commit and be willing to bet, when to delay making a commitment, when to kill something that won’t work and when to change the rules of the game. 11
  • 12. Strategy is a complex system of acting and talking, a system that occasionally manifests itself in rational designs. Many brand strategy development efforts are unintentionally turned into corporate strategy discussions and as a result these efforts are blamed for not delivering any value. REMEMBER You cannot develop a meaningful brand strategy with the absence of a business strategy. Although you can still create a name, a logo, tag lines and a set of graphic elements for brand identification purposes to deal with short term marketing needs. 12
  • 13. Step Two Perform Key Stakeholder Analysis To Capture Implicit Brand Requirements Stakeholder management is an important discipline that successful managers use to win support from others. A branding project is no different. Stakeholder analysis is the technique used to identify the key people who have to be won over. The first step is to identify who your key stakeholders are. It can include the CEO, CFO, VP Brand, VP Marketing to VP Operations. The next step is to work out their power, influence, interest and intent. The final step is to develop a good understanding of the most important stakeholders so that you know their requirements, and so that you can work out how to win their support— you can record this analysis on a stakeholder map. 13
  • 14. The benefits of using a stakeholder-based approach is that you can use the opinions of the most powerful stakeholders to shape your branding projects at an early stage. Not only does this make it more likely that they will support you, their input can also improve the quality of your project and well help you to gain the resource needed. By communicating with them early and frequently can ensure that they fully understand what you are doing and understand the benefits of your project . 14
  • 15. Step Three Perform Customer Needs-Driven Segmentation with Perspectives on Competition and Evolving Segment Economics Most companies have developed customer segments either by needs, usage or affordability at one stage or another. Often the results are not particularly useful because they are not economically viable or actionable. 15
  • 16. Segmentation must be based on the existing or potential profitability of the targeted segments. Companies must combine customer segmentation with the in-depth perspectives of the future economics of their industry. This may include segment growth, behavior, price and service requirements. Anytime a company tries to look at the future economics, there will be uncertainty about assumptions. A scenario based planning approach is likely to give useful direction to where the company can take its brand in the future. 16
  • 17. Step Four Develop and Craft a Brand Vision Crafting a brand vision forces you to think through where you want the brand to be over the longer term to support the corporate strategy. It helps the management team achieve consensus on the longer term goals and the level of branding support that is required to achieve those goals. It also provides guidelines to determine what kind of research to put in place to monitor brand building progress and return-on-investment. Most of all it gives you a starting point and a mandate to start developing other elements to support the delivery of the brand promise. 17
  • 18. A brand vision statement has no fixed length or style of composition. It should be relevant, and therefore specific to the business and the world within it operates. A brand vision statement is by definition long-term and transcends particular products, markets or even current executive leadership. A brand vision statement should be complimentary to the company’s vision statement and sometimes can be combined. Ultimately, it is the interconnection between aspirations, values and the brand that is important, not what the statement is called. 18
  • 19. The vision of the LEGO Company is to become the world's strongest brand among families with children by the year 2005. Children are our role models. They are curious, creative and imaginative. They embrace discovery and wonder. They are natural learners. These are precious qualities that should be nurtured and stimulated throughout our lives. At the LEGO Company we are firm believers that children learn best when they are having fun. Brand Vision Example 19
  • 20. In the future, LEGO Company will continue to break down existing norms, and convert them into creativity and imagination on a child's own terms. That's why I picture the LEGO brand as the world's strongest brand among families with children. Maybe not the biggest, but the best. I imagine the LEGO name known by all as a brand experience offering an integrated universe of play designed to stimulate children's creativity, imagination and learning. Brand Vision Example 20
  • 21. At IBM, we strive to lead in the creation, development, and manufacturing of the industry’s most advanced information technologies, including computer systems, software, networking systems, storage devices, and microelectronics. We translate these advanced technologies into value for our customers through professional solutions and services businesses through the world. Brand Vision Example 21
  • 22. We Help Dreamers Dream. Sony is a company devoted to the CELEBRATION of life. We create things for every kind of IMAGINATION. Products that stimulate the SENSES and refresh the spirit. Ideas that always surprise and never disappoint. INNOVATIONS that are easy to love, and EFFORTLESS to use, things that are not essential, yet hard to live without Brand Vision Example 22
  • 23. Step Five Develop a Band Promise A brand is a promise. The basis of any brand is its core promise, the essential idea around which the other components of the brand are built.A promise to achieve certain results, deliver a certain experience, or act in a certain way. But notice something: the word quot;promisequot; is a lot more powerful than the word quot;strategyquot; or quot;performance.quot; That's because strategy and performance are about corporations. Promises are about people. 23
  • 24. A promise that is conveyed by everything people see, hear, touch, taste or smell about your business. Industries and competition evolve, but a brand lives on. Your greatest legacy can be your brand. A brand promise is vital to articulate a higher calling, a crystal-clear positioning, to build a magnetic personality and an aspirational brand affiliation. These are the rational and emotional components of a powerful brand promise. It humanizes the mission statement and makes it easy for everyone throughout the organization to understand. 24
  • 25. The Yahoo! Brand Promise In any industry, there are only a handful of brands that consumers can easily recall. These are usually the brands which help define the category. Yahoo!'s commitment to their users and advertisers is to: Be the only place anyone in the world needs to go to find anything, and get connected to anybody. Yahoo! Defines the Internet. Yahoo! is in all the right places, reaching all the right people, at just the right time. People use Yahoo! for many things and value the ability to go to one place for their needs. We are the leader in reach. We are the leader in consumer loyalty and involvement. We are the leader in brand strength. We are the only place a marketer needs to advertise to reach anyone. Brand Promise Example 25
  • 26. The HP Promise We make technology accessible for everyone. HP has a 63-year history of contributing to a wide number of endeavors, across a wide number of fields-but virtually all of our efforts have been about extending the benefit of technology to wider audiences. The new HP stands for the power of invention. Invent. It's a simple word, but it carries rich significance. That's why quot;inventquot; appears under every HP logo. We are a company whose own inventive spirit-in research, in technology, in products, in services, in business models, in the way we work-fuels the inventive capabilities of our customers. Our brand is about celebrating the inventive spirit-and the idea that the right technology can help people achieve remarkable things. Brand Promise Example 26
  • 27. The HP Promise (cont’d) A company known for our character as well as our great technology. When we put an HP logo on a product, it represents the foundation of our brand-optimism about what is possible, trustworthiness, a reverence for quality engineering, a new-found dynamism and a belief in never settling for status quo, and an inclusive approach that involves our customers and partners as well as our fellow HP colleagues. We believe only one thing speaks louder than our products in that regard, and that's our people. Our brand promise is as much about our people as anything else-we intend to live up to those brand traits in every interaction we have with our customers. Brand Promise Example 27
  • 28. The Coca-Cola Promise The Coca-Cola Company exists to benefit and refresh everyone who is touched by our business. The basic proposition of our business is simple, solid and timeless. When we bring refreshment, value, joy and fun to our stakeholders, then we successfully nurture and protect our brands, particularly Coca-Cola. That is the key to fulfilling our ultimate obligation to provide consistently attractive returns to the owners of our business. Brand Promise Example 28
  • 29. The Nokia Promise Nokia, the trusted brand, creates personalized communication technology that enables people to shape their own mobile world. We also see mobile technology as an enabler to help create a more environmentally sound world. The rise of mobile communications, combined with better product design, tighter control of production processes and greater reuse of materials and recycling are all helping to reduce the use of scarce natural resources. Many activities which currently use large amounts of energy and raw materials, could be moved into the digital space to greatly reduce their environmental impact. Such new opportunities, however, come hand in hand with responsibility. Brand Promise Example 29
  • 30. The GE Promise The core promise of the GE brand is quot;better living.quot; Through its global, human, technical, and financial resources, GE applies the power of the mind and its creative capabilities to provide products and solutions that make life better. GE has consistently made this promise to its customers for nearly a century. Throughout history, GE's marketing communications in both the consumer and commercial arenas have emphasized how GE's products make life better. In each case, the point is not the products but the core promise of better living. GE communications are: Not about aircraft engines, but about the way that they bring together people of all nationalities and walks of life. Not about imaging equipment, but about how this equipment improves people's well being. Not about appliances, but about the convenience they provide and make life more enjoyable. Brand Promise Example 30
  • 31. Session five of eight. www.mootee.typepad.com OPEN SOURCE 31