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BRANDING AS
COMPETITIVE
ADVANTAGE
Samuel Payne
Strategy Director
WE USUALLY WORK WITH CLIENTS LOOKING FOR
A COMPETITIVE EDGE IN A MATURE CATEGORY
THE OPPORTUNITY
TO SHAPE A BRAND
FROM A CELLULAR
LEVEL IS REALLY
EXCITING
BRANDS HAVE ENJOYED COMMERCIAL VALUE SINCE C.50AD
FBBE CBBE
BRAND EQUITY CAN BE SPLIT IN TO TWO TERRITORIES OF VALUE
‘FIRM’ ‘CONSUMER’
“a set of assets and
liabilities linked to a
brand, its name and
symbol, that add to or
subtract from the value
provided by a product or
service to a firm and/or
that firm's customers”	

!
Aeker 1991
‘the differential effect
of brand knowledge on
consumer response to
the marketing of the
brand’	

!
Keler 1993
FIRM BASED BRAND EQUITY
"If the business were split up, I would take the
brands, trademarks, and goodwill, and you could
have all the bricks and mortar-and I would fare
better than you"
!
John Stuart, former Chairman of Quaker Oats Ltd
SOURCE: Predicting short-term stock fluctuations by using processing fluency
Adam L. Alter and Daniel M. Oppenheimer
!
Princeton University, 2006
‘BRANDING’ AS AN INFLUENCE ON YOUR IPO
BRANDING IS SO MUCH MORE THAN A LOGO
SUCK NON-SUCK
FBBE CBBE
FIRM BASED BRAND EQUITY IS DIFFICULT TO ATTACH TO A
BALANCE SHEET, BUT WIDELY RECOGNISED AS VALUABLE
‘FIRM’ ‘CONSUMER’
“a set of assets and
liabilities linked to a
brand, its name and
symbol, that add to or
subtract from the value
provided by a product or
service to a firm and/or
that firm's customers”	

!
Aeker 1991
‘the differential effect
of brand knowledge on
consumer response to
the marketing of the
brand’	

!
Keler 1993
The ‘great idea’ myth
Big Hairy Audacious Goals
Vision and Values
MASARU IBUKU, HIS FIRST 7 EMPLOYEES,
WEEKS OF BRAINSTORMING AND
PROTOTYPING
A RICE COOKER THAT DIDN’T WORK SWEET BEAN PASTE SOUP
PURPOSE
LET ORDINARY FOLK HAVE THE SAME THINGS AS RICH PEOPLE.
BIG HAIRY AUDACIOUS GOAL
BECOME A $125BILLION COMPANY BY THE YEAR 2000
!
PURPOSE
LET ORDINARY FOLK HAVE THE SAME THINGS AS RICH PEOPLE.
BIG HAIRY AUDACIOUS GOAL
BE AS SUCCESSFUL IN THE REST OF THE WORLD AS WE
HAVE BEEN IN THE UNITED STATES
!
IT DEFINES THEIR HR POLICY, INFLUENCES THEIR SEARCH
ENGINE OPTIMISATION AND INFORMS INTERNATIONAL
EXPANSION UNDER A DIFFERENT NAME.
TESCO’S VISION AND VALUES ARE
SO WELL UNDERSTOOD, THEY’RE
EVEN SATIRISED IN CULTURE.
FBBE CBBE
BRAND EQUITY CAN BE SPLIT IN TO TWO TERRITORIES OF VALUE
‘FIRM’ ‘CONSUMER’
“a set of assets and
liabilities linked to a
brand, its name and
symbol, that add to or
subtract from the value
provided by a product or
service to a firm and/or
that firm's customers”	

!
Aeker 1991
‘the differential effect
of brand knowledge on
consumer response to
the marketing of the
brand’	

!
Keler 1993
CONSUMER BASED
BRAND EQUITY
FBBE CBBE
BRAND EQUITY CAN BE SPLIT IN TO TWO TERRITORIES OF VALUE
‘FIRM’ ‘CONSUMER’
“a set of assets and
liabilities linked to a
brand, its name and
symbol, that add to or
subtract from the value
provided by a product or
service to a firm and/or
that firm's customers”	

!
Aeker 1991
‘the differential effect
of brand knowledge on
consumer response to
the marketing of the
brand’	

!
Keler 1993
BARGAINING POWER
OF SUPPLIERS
BARGAINING POWER
OF BUYERS
THREAT OF NEW
ENTRANTS
THREAT OF
SUBSTITUTES
RIVALRY AMONGST
EXISTING COMPETITORS
THE DEFAULT SHAPE FOR PORTER’S FIVE FORCES HAS CHANGED
BARGAINING POWER
OF SUPPLIERS
BARGAINING POWER
OF BUYERS
THREAT OF NEW
ENTRANTS
THREAT OF
SUBSTITUTES
RIVALRY AMONGST
EXISTING COMPETITORS
THE DEFAULT POWER HAS SHIFTED FROM SUPPLY TO DEMAND
FBBE CBBE
A CLEAR PARALLEL EXISTS IN THE RELATIONSHIP BETWEEN
INDUSTRY AND CONSUMER RECOGNITION OF BRAND VALUE
‘FIRM’ ‘CONSUMER’
“a set of assets and
liabilities linked to a
brand, its name and
symbol, that add to or
subtract from the value
provided by a product or
service to a firm and/or
that firm's customers”	

!
Aeker 1991
‘the differential effect
of brand knowledge on
consumer response to
the marketing of the
brand’	

!
Keler 1993
FROM BIG BUGET, EMOTIONAL ADVERTISING
TO MEANINGFUL ACTS AND COMMITMENT
THE BEST BRANDS ARE TAKING ADVANTAGE OF THIS SHIFT
FROM TO
SALESMAN CEO
VOICE VISION
PROMISES ACCOUNTABILITY
THIS ISN’T NEW; THE BEST COMPANIES HAVE ALWAYS HAD THESE
COMMITMENTS, BUT PERHAPS FAILED TO EXPRESS THEM
JUST AS WITH INDIVIDUALS,
CORPORATE SUCCES INSPIRES
RESPONSIBLE CONTRIBUTION
WHAT’S YOUR
COMPANY DNA?
3 QUESTIONS
WHY DO YOU EXIST,
BEYOND MAKING A PROFIT?
1.
WHY SHOULD
I, PICK YOU?
2.
WHAT’S YOUR
BIG, HAIRY,
AUDACIOUS
GOAL?
3.
samuel@motherlondon.com
@samuel_payne
hello@samuel-payne.com
Thank you

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Branding as a Competitive Advantage : A Workshop for Start-Up Companies

  • 2. WE USUALLY WORK WITH CLIENTS LOOKING FOR A COMPETITIVE EDGE IN A MATURE CATEGORY
  • 3. THE OPPORTUNITY TO SHAPE A BRAND FROM A CELLULAR LEVEL IS REALLY EXCITING
  • 4. BRANDS HAVE ENJOYED COMMERCIAL VALUE SINCE C.50AD
  • 5. FBBE CBBE BRAND EQUITY CAN BE SPLIT IN TO TWO TERRITORIES OF VALUE ‘FIRM’ ‘CONSUMER’ “a set of assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or that firm's customers” ! Aeker 1991 ‘the differential effect of brand knowledge on consumer response to the marketing of the brand’ ! Keler 1993
  • 7. "If the business were split up, I would take the brands, trademarks, and goodwill, and you could have all the bricks and mortar-and I would fare better than you" ! John Stuart, former Chairman of Quaker Oats Ltd
  • 8.
  • 9.
  • 10. SOURCE: Predicting short-term stock fluctuations by using processing fluency Adam L. Alter and Daniel M. Oppenheimer ! Princeton University, 2006 ‘BRANDING’ AS AN INFLUENCE ON YOUR IPO
  • 11. BRANDING IS SO MUCH MORE THAN A LOGO
  • 13. FBBE CBBE FIRM BASED BRAND EQUITY IS DIFFICULT TO ATTACH TO A BALANCE SHEET, BUT WIDELY RECOGNISED AS VALUABLE ‘FIRM’ ‘CONSUMER’ “a set of assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or that firm's customers” ! Aeker 1991 ‘the differential effect of brand knowledge on consumer response to the marketing of the brand’ ! Keler 1993
  • 14. The ‘great idea’ myth Big Hairy Audacious Goals Vision and Values
  • 15. MASARU IBUKU, HIS FIRST 7 EMPLOYEES, WEEKS OF BRAINSTORMING AND PROTOTYPING A RICE COOKER THAT DIDN’T WORK SWEET BEAN PASTE SOUP
  • 16.
  • 17. PURPOSE LET ORDINARY FOLK HAVE THE SAME THINGS AS RICH PEOPLE. BIG HAIRY AUDACIOUS GOAL BECOME A $125BILLION COMPANY BY THE YEAR 2000 !
  • 18. PURPOSE LET ORDINARY FOLK HAVE THE SAME THINGS AS RICH PEOPLE. BIG HAIRY AUDACIOUS GOAL BE AS SUCCESSFUL IN THE REST OF THE WORLD AS WE HAVE BEEN IN THE UNITED STATES !
  • 19.
  • 20. IT DEFINES THEIR HR POLICY, INFLUENCES THEIR SEARCH ENGINE OPTIMISATION AND INFORMS INTERNATIONAL EXPANSION UNDER A DIFFERENT NAME.
  • 21. TESCO’S VISION AND VALUES ARE SO WELL UNDERSTOOD, THEY’RE EVEN SATIRISED IN CULTURE.
  • 22. FBBE CBBE BRAND EQUITY CAN BE SPLIT IN TO TWO TERRITORIES OF VALUE ‘FIRM’ ‘CONSUMER’ “a set of assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or that firm's customers” ! Aeker 1991 ‘the differential effect of brand knowledge on consumer response to the marketing of the brand’ ! Keler 1993
  • 24. FBBE CBBE BRAND EQUITY CAN BE SPLIT IN TO TWO TERRITORIES OF VALUE ‘FIRM’ ‘CONSUMER’ “a set of assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or that firm's customers” ! Aeker 1991 ‘the differential effect of brand knowledge on consumer response to the marketing of the brand’ ! Keler 1993
  • 25. BARGAINING POWER OF SUPPLIERS BARGAINING POWER OF BUYERS THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES RIVALRY AMONGST EXISTING COMPETITORS THE DEFAULT SHAPE FOR PORTER’S FIVE FORCES HAS CHANGED
  • 26. BARGAINING POWER OF SUPPLIERS BARGAINING POWER OF BUYERS THREAT OF NEW ENTRANTS THREAT OF SUBSTITUTES RIVALRY AMONGST EXISTING COMPETITORS THE DEFAULT POWER HAS SHIFTED FROM SUPPLY TO DEMAND
  • 27. FBBE CBBE A CLEAR PARALLEL EXISTS IN THE RELATIONSHIP BETWEEN INDUSTRY AND CONSUMER RECOGNITION OF BRAND VALUE ‘FIRM’ ‘CONSUMER’ “a set of assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or that firm's customers” ! Aeker 1991 ‘the differential effect of brand knowledge on consumer response to the marketing of the brand’ ! Keler 1993
  • 28. FROM BIG BUGET, EMOTIONAL ADVERTISING TO MEANINGFUL ACTS AND COMMITMENT THE BEST BRANDS ARE TAKING ADVANTAGE OF THIS SHIFT
  • 29. FROM TO SALESMAN CEO VOICE VISION PROMISES ACCOUNTABILITY
  • 30. THIS ISN’T NEW; THE BEST COMPANIES HAVE ALWAYS HAD THESE COMMITMENTS, BUT PERHAPS FAILED TO EXPRESS THEM
  • 31. JUST AS WITH INDIVIDUALS, CORPORATE SUCCES INSPIRES RESPONSIBLE CONTRIBUTION
  • 34. WHY DO YOU EXIST, BEYOND MAKING A PROFIT? 1.