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How a good brand grows your business


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Does every brand need branding?

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How a good brand grows your business

  3. 3. SENSORY OVERLOAD Consumers are nowadays bombarded by over 600 messages on any given day.
  4. 4. <ul><li>Early 90s </li></ul><ul><li>21st Century </li></ul><ul><li>Nature’s Way </li></ul><ul><li>Kordel </li></ul><ul><li>Blackmores </li></ul><ul><li>Now </li></ul><ul><li>21st Century </li></ul><ul><li>Nature’s Way </li></ul><ul><li>Kordel </li></ul><ul><li>Blackmores </li></ul><ul><li>GNC </li></ul><ul><li>ShakeLee </li></ul><ul><li>Nature’s Life </li></ul><ul><li>Country Life </li></ul><ul><li>Nutrens </li></ul><ul><li>Ocean Health </li></ul>SUPPLEMENTS - COPYCATS & OVER SUPPLY <ul><li>Bio-Life </li></ul><ul><li>Seven Seas </li></ul><ul><li>Centrum </li></ul><ul><li>Herb Valley </li></ul><ul><li>Brands </li></ul><ul><li>VitaHealth </li></ul><ul><li>Bio Science </li></ul><ul><li>Food Source </li></ul><ul><li>Nature Farm </li></ul><ul><li>x </li></ul>
  5. 5. From: Limited Purchasing Lower Education Home Bound Easily Satisfied CHANGING CONSUMER PROFILE ©B RANDZ All rights reserved To: Affluent Well Educated Well Traveled Demanding
  6. 6. BRAND INCONSISTENCY 98% of companies say one thing but deliver something very different from their actions TIME NOW YEARS/EXPANSION/COMPETITIVE PRESSURE I1 D1 D2 I2 D3 I: Brand Image D: Delivery BRAND GAP Perception Does Not Equal Reality
  7. 7. <ul><li>Need to distinguish ourselves from others to be heard and stay relevant </li></ul>
  8. 8. SOME CONCLUSIONS <ul><li>Every business that is serious about the success of its brand must realize that : </li></ul><ul><ul><li>IT IS IMPERATIVE TO BRAND FOR LONGEVITY AND SUCCESS. </li></ul></ul>
  9. 9. WHY? <ul><li>Consumer brand choices are not solely based on rational reasons </li></ul><ul><li>Functional brand features do not give your brand the needed differentiation </li></ul><ul><li>Consumer tastes and market forces are fluid…. they change ! </li></ul>
  10. 10. <ul><li>Technology can be copied : </li></ul><ul><ul><li>Your brand can be outspec’ed, outdesigned and outpriced! </li></ul></ul><ul><li>Your brand as a person, with its unique personality traits cannot be copied . Branding can develop this ‘Personality’ </li></ul>
  11. 11. <ul><li>It’s not about records, mobile phones, airlines or drinks. It did not start off that way. </li></ul><ul><li>Began in the 1970s with a student magazine </li></ul><ul><li>and small mail order record company. </li></ul><ul><li>They have based every decision on hard research and analysis. They put themselves in the customers’ shoes to see what could make it better – are the customers confused or badly served? Is there an opportunity – seize it? They believe in branding! </li></ul><ul><li>It’s all about Fun and Irreverence </li></ul><ul><li>Today, the Virgin brand is a global brand name with a total revenue in excess of US$5 billion. </li></ul>VIRGIN - DIVERSIFIED YET FOCUSED
  12. 12. WHAT LESSONS CAN WE LEARN FROM VIRGIN? <ul><li>Brand Essence – Fun & Irreverence </li></ul><ul><li>Consistent application of this essence in every business and sub-brand they have. </li></ul><ul><ul><ul><li>The Virgin Atlantic Story </li></ul></ul></ul><ul><ul><ul><ul><li>Lost baggage </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Office Opening </li></ul></ul></ul></ul><ul><ul><ul><ul><li>In flight souvenirs </li></ul></ul></ul></ul>
  14. 14. DELIVER A VALUE PROPOSITION <ul><li>What is this? </li></ul><ul><li>“ A brand’s value proposition is a statement of the functional, emotional and self-expressive benefits delivered by the brand that provide value to the customer. An effective value proposition should lead to a brand-customer relationship and drive purchase decisions .” </li></ul><ul><li>- David Aacker- </li></ul><ul><li>Building Strong Brands </li></ul>
  15. 15. FUNCTIONAL BENEFITS <ul><li>A benefit based on a product attribute that provides functional utility and benefit to the customer. </li></ul><ul><li>Some examples: </li></ul><ul><ul><li>Volvo is safe and durable because of its weight and design </li></ul></ul><ul><ul><li>A 7-Eleven store means convenience </li></ul></ul><ul><ul><li>Coke provides refreshment and taste </li></ul></ul><ul><ul><li>A BMW vehicle handles so well… even on ice </li></ul></ul><ul><ul><li>100Plus helps replace body fluids lost through perspiration </li></ul></ul><ul><ul><li>Dynamo liquid removes stains and washes cleaner </li></ul></ul>
  16. 16. SO WHAT’S WRONG WITH FUNCTIONAL BENEFITS? <ul><li>Absolutely nothing! </li></ul><ul><li>But…. </li></ul><ul><ul><li>The challenge is to select functional benefits that will “hit the spot” and make a connection with the customer. </li></ul></ul><ul><ul><li>How many functional benefits are there left that can do this? They are mostly generic ! </li></ul></ul>
  17. 17. LIMITATIONS OF FUNCTIONAL BENEFITS <ul><li>Functional benefits based on product attributes: </li></ul><ul><ul><li>Fail to differentiate </li></ul></ul><ul><ul><li>Can be copied </li></ul></ul><ul><ul><li>Assume a rational decision maker </li></ul></ul><ul><ul><li>Restrict brand extensions </li></ul></ul>
  18. 18. EMOTIONAL BENEFITS <ul><li>When a brand provides the user with a positive feeling then the brand is providing an emotional benefit. </li></ul><ul><li>Some examples: </li></ul><ul><ul><li>Energetic & vibrant when drinking Coke </li></ul></ul><ul><ul><li>Strong & rugged when wearing Levis </li></ul></ul><ul><ul><li>Confident and glowing when using Dove </li></ul></ul><ul><ul><li>In control of the aging process when using Oil of Olay </li></ul></ul><ul><ul><li>Sporty, masculine and successful when wearing a TAG Hueuer </li></ul></ul>
  19. 19. SO WHAT’S SO POSITIVE ABOUT EMOTIONAL BENEFITS? <ul><li>Emotional benefits add richness and depth to the experience of owning and using the brand </li></ul><ul><li>They enable brand differentiation in a cluttered over-communicated market </li></ul>
  20. 20. FUSING FUNCTIONAL & EMOTIONAL BENEFITS <ul><li>The strongest brands have both functional and emotional benefits as part of their value proposition, e.g. </li></ul><ul><ul><li>Pantene: Adds emotional benefit “You will look and feel terrific” to functional benefit “For hair that’s thicker and fuller ” , very successfully throughout its range. </li></ul></ul>
  21. 21. SELF-EXPRESSIVE BENEFITS <ul><li>Brands have become symbols of a person’s self-concept. Thus a brand provides a self-expressive benefit by providing a way for him to express his self-image . </li></ul><ul><li>Some examples: </li></ul><ul><ul><li>Successful and powerful when I drive a Mercedes Benz </li></ul></ul><ul><ul><li>Sophisticated when using Davidoff perfume </li></ul></ul><ul><ul><li>Discerning & tasteful when wearing an Armani suit </li></ul></ul><ul><ul><li>Caring & nurturing when serving Fernleaf milk </li></ul></ul><ul><ul><li>Sporty and young in outlook when driving an Alfa </li></ul></ul>
  22. 22. STRONG BRANDS Functional benefits Emotional benefits Self-expressive benefits THE VALUE PROPOSITION MODEL
  24. 24. ENSURE BRAND RELEVANCE <ul><li>Adopt a consumer-driven approach </li></ul><ul><li>Work from “outside-in” to develop brand offerings that meet and fit with current/future consumer wants. This ensures relevance, longevity and success of your brands. </li></ul>
  25. 25. COMMIT TO A REAL DIFFERENTIATOR <ul><li>Take a unique real and believable strategic position for your brand . Do not fall into the product attribute (e.g. “washes cleaner”) trap. Be bold and take a position that enables your brand to stand out. </li></ul>
  26. 26. HAVE A VALUE PROPOSITION <ul><li>Combine emotional, functional and self expressive benefits to achieve differentiation. Skillfully combined, they deliver a value proposition that builds a relationship between user and brand, going beyond just loyalty. </li></ul>
  27. 27. INVEST IN YOUR BRAND <ul><li>Put money into research and development to enhance the product/service delivery of quality. </li></ul><ul><li>Be willing to invest in packaging design, distribution, promotions . </li></ul><ul><li>Ensure you have a clear feedback from the market about your brand’s appeal. Invest in market research </li></ul>
  28. 28. HAVE A BRAND ARCHITECTURE <ul><li>It establishes a system of relationships and structure for all the brands in a company’s stable. This will avoid confusion. </li></ul><ul><li>In every touch point the brand has with its users, the brand experience must be aligned and consistent . </li></ul>
  29. 29. Master brand supporting/endorsing autonomous brands Technological advancement for increased hair vitality 2/3 in-one for convenience Dandruff control PROCTER & GAMBLE SHAMPOO RANGE PANTENE REJOICE HEAD & SHOULDERS
  30. 30. Master brand supporting/endorsing autonomous brands Premium priced, superior cleaning One for every Asian hair type Superior cleaning, economy priced UNILEVER PRODUCT RANGE (partial) BREEZE SUNSILK EKONOMI HANDALAN
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