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Brand Equilibrium: An Insight Story For Brands

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Brand Equilibrium describes a prolbem common to many brands that operate in highly competitive but poorly differentiated sectors

Published in: Business, Education
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Brand Equilibrium: An Insight Story For Brands

  1. 1. Introduction to Brand Equilibrium An insight into a common threat for brands within highly competitive, yet well established, sectors . . . . . . . . . . . . . . . . . . . . . . . . 1 BrandTao The way of brands Best Viewed Full Screen
  2. 2. What is Equilibrium? 2 - A condition in which all acting influences are cancelled out by others.
  3. 3. Equilibrium: An insight story for brands 3
  4. 4. Equilibrium: An insight story for brands 4
  5. 5. Equilibrium: An insight story for brands 5
  6. 6. The Brand Equilibrium Insight 6 When all the brand competitors use the same objectives, tools and operation methods, the result is equilibrium.
  7. 7. Equilibrium: An insight story for brands 7 Brand Positioning Customer Service Products Retail Environment Brand Equilibrium: When consumers can’t perceive or articulate a significant difference between competing brands
  8. 8. Marketing : ‘Mature markets see rapidly replicated competitive actions, dulling difference or advantage’ Equilibrium demonstrated within the mobile network sector 8 Network Data Speed Network Coverage TariffsHandsets Customer Rewards Hypothesis: Within 3-12 months, any temporary advantage is cancelled out by competitors replicating benefits Core Operational Functions: ‘Hard to develop, but possible to replicate’ Customer Service EEVodafone 3O2 Core competitors become stratified into a Corporate Oligarchy: ‘Gaining market share becomes rare’ 80%+ of a market becomes controlled by the big 3-5 brands; e.g. banking, multi-channel TV, broadband, energy and mobile Similar Brand Positioning Homogenous Objectives Traffic Light Failure Green KPI’s = no change Levers produce little change Trap of Gravity Repeat same again Hypothesis: Within 3-12 months, any temporary advantage is cancelled out by competitors replicating benefits Standard KPI’s match
  9. 9. The solution 9 Brand Positioning Customer Service Products Retail Environment The solution is committing to a different path. Defining a different ambition for your brand and using original insight, a unique strategy, innovative products and by not trying to match your Competitors or appeal to every consumer. Having a brand conviction for a different, distinctive and sustainably better way.
  10. 10. Breaking Brand Equilibrium 10 Advantage starts when a brand does things differently.
  11. 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Blog: http://www.brandtao.co.uk 11 BrandTao The way of brands

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