Brand Genetics
A brand is defined as a set of promises that link a product to customers and assure them of consistent quality and superior value. The document examines various aspects of strong brands including the world's most valuable brands, how brands create shareholder value, and what makes brands immortal. It discusses brand genetics and how successful brands adapt to changes while maintaining their core identity, like natural species. Key aspects of a brand's genetic code are identified such as benefits, positioning, personality, mission, vision, and values. The brand communication model is presented which is driven by the brand's genetic code.
Brand Genetics
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- 2. What is abrand? 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. The world’s 10most 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. Strong brands createshareholder value… Branded companies experienced lower volatility and generated average monthly returns of 2.07% while the market averaged 1.34%
- 5. In an oversuppliedmarket, 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. Cutting through thebrand ‘noise’
- 7. Brand as imagewrapper? 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
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- 9. Brand Genetics in an ageof Integration
- 10. What makes brandsimmortal? Brand Equity Sales & Profits Sales Profit Introduction Growth Maturity Time Decline
- 11. Brand Genetics Brand Geneticslikens 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. Survival of thefittest “ ... 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. Success Successful natural specieshave a distinctive point of difference which offers a unique advantage Successful brands also have distinctive points of difference which give them unique advantages
- 14. Adaptation “When a plantor 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. Adaptation Successful species adaptto 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. Dominance “.... largeness ofarea 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. Dominance An animal hasto 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. 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. Brand led business BrandImage 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. s Business form Publications Brand Touchpoints Brand ails VoiceM 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. The brand communicationmodel 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. The Brand’s GeneticCode 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. Product Benefits A carefullyphrased 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. Rational benefits Rational benefitsare 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. Rational benefits These areall 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
- 31. Emotional benefits Emotional benefitsspeak 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
- 32. Emotional benefits The emotionalbenefit 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
- 38. Positioning This is yourresponse 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
- 40. Style / Personality Thisdescribe 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
- 44. Mission What would wedo 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
- 45. Vision Vision in thebrand 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
- 46. Values ‘Rules of life’ Valuesemphasize 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
- 47. The Brand ActivityGenerator 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
- 48. 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”
- 51. Brand Belief: IKEA IKEAbelieves 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.
- 52. IKEA - TheMind 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”
- 53. IKEA - TheMind 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”
- 56. Orange - TheMind 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”
- 59. The brand communicationmodel 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