Brand Genetics

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Brand Genetics

  1. 1. Brand SAM Husaini
  2. 2. What is a brand? A brand is a set of differentiating promises that link a product to its customers. The brand assures the customer of consistent quality plus a superior value (both functional and emotional) for which the customer is willing to give loyalty and pay a price that brings a reasonable return to the brand
  3. 3. The world’s 10 most valuable brands Brand Value 2003 % Market Cap parent company $70.5 bn 61% $65.2 bn 23% $51.8 bn 36% $42.3 bn 14% $31.1 bn 22% $29.4bn 35% $28.0 bn 65% $24.7 bn 88% $22.2 bn 25% $21.4 bn 61% Source: Business Week, Interbrand league table, 2003
  4. 4. Strong brands create shareholder value…  Branded companies experienced lower volatility and generated average monthly returns of 2.07% while the market averaged 1.34%
  5. 5. In an oversupplied market, attention is the scarcest commodity There are 50 types of shampoos in Carrefour Growth in Pan Arab media channels. News, Movies, Music (120 channels added in the last 5 years) 40% of our newspapers is advertising The average Pan Arab is exposed to 2000 commercial messages a day There are 2-3 new consumer promotions a day in our markets (25% Int. norm) Human bandwidth is the problem - It’s finite Davenport & Beck The rise of the attention economy
  6. 6. Cutting through the brand ‘noise’
  7. 7. Brand as image wrapper?  Many companies expect a new name, a fancy logo and a flashy advertising campaign by themselves attract new customers Brand Image Wrapper Product An outside - in Approach in Branding  The image wrapper approach focuses on the exterior look and feel rather than the tonality of the product or service  There is no shortage of design and advertising agencies that work with these companies and create a BRAND MIRAGE with no substance or credibility behind it  A lot of dotcoms soon became dot.bombs realizing that building brand reputation is much harder than buying brand awareness
  8. 8. Getting it wrong
  9. 9. Brand Genetics in an age of Integration
  10. 10. What makes brands immortal? Brand Equity Sales & Profits Sales Profit Introduction Growth Maturity Time Decline
  11. 11. Brand Genetics  Brand Genetics likens evolution of brands to that of natural species  Theories of great naturalists –  C. Darwin: “Survival of the fittest”  Establishes rules for brand success  Helps to articulate brand heritage, identifiers, personality, and belief
  12. 12. Survival of the fittest “ ... the individual with, for example, the sharper beak, the longer horn, or the brighter feather would have the best chance of surviving and procreating its kind” Charles Darwin
  13. 13. Success  Successful natural species have a distinctive point of difference which offers a unique advantage  Successful brands also have distinctive points of difference which give them unique advantages
  14. 14. Adaptation “When a plant or animal is placed in a new country ... we should have to modify it in a different way .. to give it some advantages over a different set of competitors” Charles Darwin
  15. 15. Adaptation Successful species adapt to environmental changes without losing the genetic identity that provides competitive strength Strong brands have the ability to adapt, and to leverage their core identity by making it relevant - To different customers - To different market conditions
  16. 16. Dominance “.... largeness of area is still more important, especially for the production of species which shall prove capable of enduring for a long period, and of spreading widely .... .... there will be a better chance of favourable variations ....” Charles Darwin
  17. 17. Dominance  An animal has to be more clever, and fight harder to retain leadership than it did to acquire it  Dominant brands lead in spirit as well as size –  Stature + Vitality  Big brands that stay healthy are those that continue to surprise –  Consistency + Innovation
  18. 18. True Brands Known Name & Symbol Has a distinctive name, typeface, color and symbol Has a high level of awareness ( Over 70% on a prompted basis) True Brand Characteristics Trusted Has earned reputation on key measures driving preference Head and Heart Has emotional connection not just functional meaning
  19. 19. Brand led business Brand Image Brand Promise Brand Reality Haagen Dazs: 46% of users said that they intended always to buy this brand and were unlikely to switch . 41% said that if the brand was not available, they would go else where to find it. 41% said they would not switch to own label no matter how cheap it became
  20. 20. s Business form Publications Brand Touchpoints Brand ails Voice M Websites Web Bann ers Employ e es Products ices Serv Publi c Rel ation s Direct Mail ows Trade Sh outh of M Word Each touch point is an opportunity to strengthen a brand and to Communicate it’s essence
  21. 21. The brand communication model Evolution over time Ensuring consistency is not mere repetition Advertising Functional Spiritual Brand Genetic Code Brand Activity Generator Building desired consumer behavior Generate positive experiences (trial - usage - loyalty) Mental Social PR CRM Merchandising The brand genetic code determines the characteristics of the business. What it looks like, how it feels, how it behaves. Not just what it is, but who it is - What makes it unique. Expressive themes that drive the communication concept derived from consumer insights. Building points of parity & differentiation in brand promise Using a TOTAL WORK approach in ensuring that the brand engages with the different target groups therefore creating a long term profitable consumer franchise for the brand owner
  22. 22. The Brand’s Genetic Code Product / Benefit Mission What is the benefit for the customer ? What is the brand’s role in society, or the public benefit of the brand? (…if we did not do it for money) Positioning Why is our brand better than or different from those of the competitors? Styling / Personality What characterizes the style of the brand, image, tonality etc? Words or a phrase describing the main idea of the brand Vision The brand can define it’s own future; in what market do we want to be? Values What makes the brand trust worthy as a friend?
  23. 23. Product Benefits  A carefully phrased description of the benefits of your company, the product, service knowledge and so on  This can be an easy task, but takes more work to get beyond clichés  Rational benefits  Emotional benefits This aspect of the code generally drives expression themes in the functional dimension
  24. 24. Rational benefits  Rational benefits are those benefits that speak through logical reasoning to the consumer  For a retail outlet these could: –  The brand that offers the widest range of products available –  The brand that offers the best value for money –  The brand that caters for women (men / young children etc.)  For FMCG brands –  –  –  –  The biscuit brand that fills you up The shampoo brand that makes your hair healthier The toothpaste brand that makes your teeth whiter The washing up liquid that kills germs  For a service brand –  We deliver in 24 hours worldwide –  We offer a quiet ride –  We have a large network –  We have a fast access time
  25. 25. Rational benefits   These are all rational benefits that can be justified and are easily accepted by consumers because of a reasoned argument   However because they are rational they are easily matched or copied by competitors   Rational benefits often provide the entry conditions to interest a consumer, without which they will pass the brand by   Once the brand has entered the consumer’s consideration set with an implicit rational benefit, the choice between brands will then be made based on the emotional benefit that differentiates brands with identical rational benefits
  26. 26. Emotional benefits  Emotional benefits speak to the humane, intuitive side of the consumer  They are expressed through ideas and images that are irrational yet compelling and often aspirational and inspirational in nature  Examples of emotional brand benefits might be: –  The washing powder for the caring mother –  The face cream to make you beautiful –  The sexiest clothing brand –  The most exclusive car brand
  27. 27. Emotional benefits  The emotional benefit is also often the theme that generates the aura around a brand that makes it special and this can be heavily leveraged to persuade consumers to buy  Because this aura is unique it provides an excellent defense mechanism against competitors who may be able to replicate the rational benefits of the brand
  28. 28. Positioning  This is your response to : Why are you better than and or different than your competitors?  The brand is the differentiation code for your company  Usually this includes the competence of doing something very well for a specific TA.  You might also have competencies that are not necessarily as yet communicated in the benefit you deliver to your customers This aspect of the code generally drives expression themes in the functional dimension
  29. 29. Style / Personality  This describe the personal traits, image, attitude and behavior of the brand  The personal appearance that immediately meets the eye   This aspect of the code generally drives expression themes in the social dimension
  30. 30. Mission  What would we do if we did not do it for money?  For most companies recruiting young talent is a crucial part of their brand code  Young people in particular ask for a meaningful job, which is equally or more important than compensation  Companies that can not explain what contribution they make to society may not be on the short list  The mission is very useful in driving public relation activities This aspect of the code generally drives expression themes in the spiritual dimension
  31. 31. Vision  Vision in the brand code is the positioning for the future - In what market do we want to be?  Quite often you have to create your own market  A typical example of this is when Rollerblades created the market for in-line skating  This avoided the degeneration of its brand. (Think of what happened to Xerox, Vespa and thermos)  Really successful brands have clear vision on –  The future market place –  What will we offer –  To whom & when
  32. 32. Values  ‘Rules of life’  Values emphasize the trust worthiness of the brand  The long term personality that guarantees continuity, as values do in personal friendship  Though they are mainly non verbal. The key words must be chosen with care  In entrepreneurial business, the values of the founder are usually set as corporate values  This makes them more genuine than contrived corporate strategy
  33. 33. The Brand Activity Generator The Functional Dimension Benefit of the product or service associated with the brand The Social Dimension Social acceptance Code The Mental Dimension Personal identification with inner self The Spiritual Dimension Social Responsibility  This is a wind tunnel to test prototype brands against future scenarios  Its is a modeling tool that can be used to create a new brand or to analyze strategic options for established brands  Expressing the brand code in 4D, can drive every aspect of the business. From integrated communication to NPD and to recruitment
  34. 34. Virgin Atlantic - The Mind Space The Functional Dimension Whenever you encounter Virgin, its cheaper, better quality and a much nicer atmosphere” The Social Dimension “I like Virgin, they are like a great friend. We share values, attitudes towards life and like to have fun” •  •  •  •  ESSENCE OF CODE The best quality Innovative Good value for money Challenging to existing alternatives •  Something that adds a sense of fun or cheekiness The Mental Dimension Code The Spiritual Dimension “I appreciate virgin’s commitment to challenge big and oblivious corporations” “Virgin is my Robin hood” “Virgin make me feel good. When I am on that plane it feels mentally relaxing”
  35. 35. Brand Belief: IKEA  IKEA believes it is unjust that only the rich should be able to afford well designed furniture.  So, with a commitment to equality and innovation, IKEA provides a wide range of good design home furnishings at prices so low that the majority of people can afford them.
  36. 36. IKEA - The Mind Space The Functional Dimension “IKEA gives me good contemporary design and function, good value for money” The Social Dimension “Buying at IKEA makes me seem savvy, it shows that I appreciate value for money and like good contemporary design” IKEA FACTS & FIGURES •  Turnover of $ 12.5 billion •  IKEA has 2,330 suppliers in 64 countries •  49,000 co-workers compared to 15 in 1954 The Mental Dimension Code The Spiritual Dimension “IKEA drives the democratic process in the world, both by the way they work and by giving more people to create a better everyday life” “IKEA engages me in doing some of the work myself, I also get inspiration and ideas”
  37. 37. IKEA - The Mind Space The Functional Dimension “IKEA gives me good contemporary design and function, good value for money” The Social Dimension “Buying at IKEA makes me seem savvy, it shows that I appreciate value for money and like good contemporary design” Essence of the Brand Code   IKEA believes it is unjust that only the rich should be able to afford well designed furniture.   So, with a commitment to equality and innovation, IKEA provides a wide range of good design home furnishings at prices so low that the majority of people can afford them. IKEA FACTS & FIGURES •  Turnover of $ 12.5 billion •  IKEA has 2,330 suppliers in 64 countries •  49,000 co-workers compared to 15 in 1954 The Mental Dimension Code The Spiritual Dimension “IKEA drives the democratic process in the world, both by the way they work and by giving more people to create a better everyday life” “IKEA engages me in doing some of the work myself, I also get inspiration and ideas”
  38. 38. Orange - The Mind Space The Functional Dimension “Its easy for me to understand and beneficial for me to use the orange products and services” The Social Dimension “I get a lot attention when I say I use Orange. It’s like people nod approvingly around you, they know what it’s all about” Positioning •  Positions it’s self as the customer’s flexible service hero The Mental Dimension Code The Spiritual Dimension “The future is bright the future is Orange” “Their service makes me feel looked after”
  39. 39. The brand communication model Evolution over time Ensuring consistency is not mere repetition Advertising Functional Spiritual Brand Genetic Code Brand Activity Generator Building desired consumer behavior Generate positive experiences (trial - usage - loyalty) Mental Social PR CRM Merchandising The brand genetic code determines the characteristics of the business. What it looks like, how it feels, how it behaves. Not just what it is, but who it is - What makes it unique. Expressive themes that drive the communication concept derived from consumer insights. Building points of parity & differentiation in brand promise Using a TOTAL WORK approach in ensuring that the brand engages with the different target groups therefore creating a long term profitable consumer franchise for the brand owner

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