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Meaningfully Different Brands
This document discusses building meaningful brands through the Millward Brown Brand Philosophy framework. It emphasizes that meaningful brands which are perceived as different and salient by consumers can command higher market share and price premiums. The framework uses metrics like Power, Premium and Potential to predict brand performance. It also highlights how mobile surveys can provide high quality insights by better representing consumers in an increasingly digital world.
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Meaningfully Different Brands
- 1. Meaningfully different brands Charles Foster MD Millward Brown MEA
- 2. 2 WE ARE THE WORLD’S LEADING EXPERT IN helping clients GROW great brands
- 3. Meaningfully different brands, properly amplified, create sustainable financial value growth.
- 4. 4 MillwardBrown BrandPhilosophy
- 5. Brands Brands Brands Brands
- 6. What is abrand? A set of associations (ideas, memories and feelings) in the mind of a consumer
- 7. What makes abrand valuable? I N C R E A S I N G T H E L I K E L I H O O D that a consumer wi l l buy/consider I N C R E A S I N G H OW MU C H consumers wi l l pay Successful brands build associations that deliver these commercial benefits
- 8. 8 MEANINGFUL Consumersfeel an affinity for the brand or think it meets their needs DIFFERENT Feels different from other brands or sets the trends for the category SALIENT Comes to mind quickly and readily when activated by ideas relating to category purchase
- 9. Apple: unique personalityand tangible product innovation = differentiation worth paying for 137 248 131 137 158 272 Avr = 100 $185b MEANINGFUL DIFFERENT SALIENT Avr = 100 $78b Coca-Cola: first to mind for billions of thirsty people = dominant volume share for impulse category
- 10. Salient The fivekey inputs… Meets Needs Meaningful Different Affinity Unique Dynamic Awareness Intensity The new approach has inputs which shorter, quicker, easier to administer Please drag each brand onto the scale to indicate how different they seem to others in the market. You can place more than one brand in each box or leave a box empty. Please place all brands on the scale before continuing. This type of questioning improve the model fit by 16% Further development work through BrandZ: >40 countries, >5000 brands, >300,000 consumers
- 11. MDS derives threekey summary metrics of brand equity related specifically to core business objectives Our headline measures of equity recognise that your portfolio can deliver a financial return in two ways and provides a predictive measure of future potential. 11 Delivering more share P OWE R is a prediction of the brand’s share based purely on brand perceptions. Are consumers predisposed to choose the brand over others? Justifying a price premium P R E M I U M is a prediction of the price index a brand can charge based purely on perceptions. Are consumers predisposed to pay more for the brand? P O T E N T I A L is the probability that the brand will grow share based purely on brand perceptions. Are consumers predisposed to stick with the brand in future or try it? FUTURE NOW
- 12. Meaningful, different andsalient brands… Each of these metrics are created from measures of how meaningful, different and salient brands are. 12 … Have the POWER to capture significantly MORE VOLUME POWER … Can command a price PREMIUM PREMIUM … Have much greater POTENTIAL to gain value share in the future POTENTIAL
- 13. Our Framework ofconsumer decision making Predisposition and in-market activation allow us to determine what drives your financial performance and the best way for you to leverage share and/or to justify your price point now and in the future. 13
- 14. Great metrics, needgreat 14 data capturing techniques
- 15. We are 90%electronic DC today, PAPI is going because…. 15 Busy consumers Less accessible Poorer quality data Slow study timelines BUT WHAT’S NEXT?
- 16. Mobile interviewing isthe future; in fact it is already here 16
- 17. Why consider mobilesurveys? ACTUALLY THE REAL QUESTION SHOULD BE WHY NOT? 17 1.76 BILLION 37% GROWTH 15% OF WEB smartphones users by the end of 2014 – overtaking laptops and PCs* in the number of global 3G subscribers in the past year** traffic comes via mobile – more than double last year; Mobile traffic share already over 50% in India and China*** *Source: e.Marketer Global report June 2014 **Source: InformaWCIS; ***Source: StatCounter Global Stats, 9/12
- 18. Nearly 51% ofweb traffic in KSA comes from a mobile phone device and not from a desktop (49%) 18
- 19. This is notsurprising since KSA has the 3rd highest smart phone penetration in the world. 53 48 47 47 44 43 42 33 25 18 15 40 Russia Mexico Thailand South Africa Argentina Philippines Japan Turkey Brazil Vietnam Indonesia India 19 81 81 76 75 72 68 65 65 62 85 UK Australia Spain Saudi Arabia Canada USA China Germany France Italy Source – Google Our Mobile Planet 2014.
- 20. 20 MOBILE SURVEYSGIVE YOU GREAT SHORT TERM ADVANTAGES Consumers are connected to their mobile phones all the time and find it comfortable and engaging as a communication medium better interview context Pilot studies have shown that without interviewers (over)prompting, mobile data is more discriminating between brands and reflect market reality better better data quality Speed of data access and deliverables increases significantly.
- 21. 21 MOBILE SURVEYSWILL HELP YOU FUTURE PROOF YOUR INSIGHTS Door to door access will get increasingly difficult and expensive due to rising trend of gated communities where higher income respondents reside better representativeness of the sample Can integrate exciting possibilities offered by the smartphone platform: multimedia, geo-location (GPS), passive behaviour monitoring (once the smartphone penetration is sufficiently high).
- 22. 22 Data quality is impressive on Mobile
- 23. 23 KEY INSIGHTSWE HAVE SEEN FROM THE DATA
- 24. ACCESS TO HIGHER INCOME HOUSEHOLDS MOBILE GIVES US BETTER ACCESS TO HIGHER INCOME HOUSEHOLDS (MORE VALUABLE 24 CUSTOMERS) THAN TRADITIONAL DOOR-TO-DOOR INTERVIEWING CAN
- 25. 25 MOBILE DATA MATCHES UP TO MARKET SHARE OVER TIME, MOBILE DATA MATCHES UP TO MARKET REALITY EVEN MORE DUE TO THE ABILITY TO COVER WIDER GEOGRAPHIES NATIONALLY
- 26. 26 MORE HONEST FEEDBACK SELF-COMPLETION MODE MEANS THAT RESPONDENTS ARE MORE DISCRIMINATING TOWARDS BRANDS, GIVING US MORE HONEST AND USEFUL FEEDBACK
- 27. 27 NOT ANISSUE CAPTURING OPEN ENDED RESPONSES
- 28. 28 SCREEN SIZE DOESN’T MATTER – RESPONSES ARE CONSISTENT
- 29. TWO KSA STUDIESIN FIGURES 29 8 mins to complete on average for Banking 83% answered the surveys using a smartphone 65% answered the surveys using an Apple iOSdevice 11 mins to complete on average for Auto 9 days get 1000 completes
- 30. KSA STUDIES BYRESPONDENT LOCATION 30
- 31. 2 Brand Equity Studies completed via Mobile in KSA Cars example 31
- 32. EQUITY OF LEADINGCAR BRANDS 32
- 33.
- 34. Take a Guess– Which Brands have higher Power? 34 Power 12
- 35. What is drivingToyota’s Power? Salient 156 Salient 156 Power 19.3 Salient 156 People consider the brands that are most salient – the ones that come to mind quickest when the need arises. Different 88 Power 19.3 Meaningful 128 Because people are predisposed to consider brands when they believe them to be meaningful. They meet their needs better than other brands and they appeal to them more than others. If a brand seeks to charge a premium, people will only do so if they believe the brand is meaningfully different in some way. Very Salient and Strongly Meaningful overall. Weak perceived difference is its main weakness as it is the most popular make in the country.
- 36. Leading car brandsin Saudi Arabia Power 12
- 37. Power can transformquickly… 25% 20% 15% 10% 5% 0% Over the last couple of years, the brand equity scores of Toyota has come down at the expense of growth of brands like Ford and Hyundai. 37 Toyota Ford Hyundai Mercedes-Benz BMW 2011 2013
- 38. Changing demographics alsoimpacting power shift: Younger Saudis lean towards Hyundai and BMW 38 POWER SCORES IN 2013 TOTAL SAMPLE 20-29 YRS 30-50 YRS Toyota 19.3% Ford 12.1% Hyundai 12% Mercedes-Benz 11.8% Average Average BMW 11.1% Chevrolet 9% Honda 9% Nissan 8% Average Average GMC 7% Average Average Base: (400) (236) (164) Lower than the average Higher than the average
- 39. What contributes tobeing Meaningful & Different in cars? 39
- 40. What is drivingMeaningful & Difference for cars in KSA? 20.9% 40 Contribution to Meaningful Contribution to Difference 3.1% 0.4% - 12.4% 17.0% 16.3% 26.6% 24.2% Proud to drive Better to drive Stylish design Acceptable price Costs more Too cheap Doesn't meet needs - 1.3% - 15.6% 29.9% 1.7% 14.0% 16.7% Proud to drive Better to drive Stylish design Acceptable price Costs more Too cheap Doesn't meet needs Premium pricing Driving experience
- 41. Power differences acrossmid-range car brands Average Endorsement across category Toyota Ford Hyundai Better to drive than others in their class 33% More stylish and better designed than others in their class 34% Would be proud to use 34% Acceptable price 13% Does not meet my needs 22% Costs more than you're prepared to pay 12% -8% Too cheap 6% -1% 1% -5% 13% -4% 1% 41 9% 2% -10% -6% 9% -15% -1% 1% -2% -2% -3% 4% -6% 1%
- 42. Power differences acrossprestige brands Average Endorsement across category Mercedes Benz BMW Better to drive than others in their class 33% More stylish and better designed than others in their class 34% Would be proud to use 34% Acceptable price 13% Does not meet my needs 22% Costs more than you're prepared to pay 12% -10% -11% 31% 29% Too cheap 6% -1% 22% 13% -2% 36% 33% 42 -5% 16% -13% 38%
- 43. TO SUM UP…. 43 The MDS framework: - Helps you build meaningful brands & grown brand value - Holistic in approach, yet can diagnose in detail the barriers & facilitators to brand growth - Validated, forward looking and linked to brands’ financial performance. Digital data-collection is already a reality - Consumers are spending more time on digital devices - Gives us better access to different consumer profiles - Better quality data - Realistically shorter questionnaires are the future
- 44. Any Questions? Getin touch with Charles Foster charles.foster@millwardbrown.com
Editor's Notes
- #5 But first of all I would like to introduce you to our brand philosophy and what we know about brands…
- #7 So as we know brands aren’t very tangible…the product or the service we sell is, but not the brand and it is all made up in consumers minds…so how de we equate that to financial value
- #8 A brands value lies in whether people will buy the service above all others and whether they will be willing to pay more…and the associations that a brand builds needs to deliver on these two elements to ensure commercial benefits
- #9 What do all strong brands have in common in terms of their assocations…they are meaningful in consumers minds both on an emotional and rational level, the are unique in some way setting them apart from the competition and they come readily to mind when consumers consider the category
- #10 As an example…2 very strong brands…and how they perform on driving MDS…firstly you will notice that they over index on all 3 areas…which means strong brands need all 3, but the headline strength can be different…
- #13 There are three “flavors” of predisposition that we measure in our research. Each one relates to a different behavioural outcome but ,importantly, each one of these measures is created based on different combinations of the three basic ingredients: meaning, difference and salience. Power, the ability to command volume sales, depends on meaning and salience more than difference. Premium, the ability to command a price premium, depends on meaning and difference far more than salience. Marketing strategies and tactics that only focus on creating salience potentially undermine a brand’s ability to command a price premium. Potential, the likelihood that the brand will gain future value share, is similarly reliant on meaning and difference, less so salience.
- #14 Successful brands are meaningful, different and salient. The ideal balance for a specific brand is a function of both the category and the primary mode of financial return—sales volume or premium pricing. There are three types of consumer predisposition to brands. We have a measure for each one: Consumers are predisposed to choose the brand over others. This will drive brand volume, so Power predicts volume share based entirely on perceptions, absent of activation factors. We report Power as a percentage share because we want to reflect the relationship it has with Volume Share. Consumers are predisposed to pay more for the brand. This will allow the brand to charge more, so Premium predicts the price index your brand can command, based purely on perceptions, absent of activation factors. We report the Premium score as an index because we want to reflect the relationship it has with in-market Price Index Consumers are predisposed to stick with the brand in the future, or try it. This will prime the brand for future value share growth and is predicted by Potential, similar to what Voltage2.0 did, but improved. We express Potential as a % representing probability of growth. All three predisposition metrics are based on the same foundations (Meaningful, Different and Salient) combined differently. All three (Power, Premium and Potential) are validated to in-market results. Predisposition and in-market barriers and facilitators allow us to determine what drives your financial performance and the best way for you to leverage volume share and/or to justify your price point now and in the future.
- #20 World where smartphone are common-place , but still some big and important where smart-phone consumers are still a niche; but still represent a large number of people. Our survey covers only smart-phone usage as we wanted a homogenous and comparable sample across markets, and with decreasing costs of devices and data, smartphone penetration will be growing considerably in low-penetration markets, so in some markets these results are more future-facing
- #37 Difference for Auto is interesting. In KSA, Difference seems to be driven by status and premium (I might read ‘costs more than prepared to pay’ in the more positive sense of premium)...and from a product perspective, more than drive quality it is design (sort of linked to status and premium – design can be a head turner). While Mercedes has a higher Power score compared to BMW, BMW is stronger on design and amongst Youth. The reason why Power is similar for Ford and Hyundai is because on the biggest component driving POWER (MEANINGFUL), their scores are actually quite similar. Where the gap between the two is the biggest is Difference but that only accounts for ~25% contribution. Refer to the angle of each slice of the pie. So Ford and Hyundai are close on what matters more to drive volume share (MEANINGFUL).
- #38 Further, if we look at Power over time, we do see BMW holding while Mercedes weakens; pointing to BMW arguably having longer term strengths compared to Mercedes…
- #41 The drive experience is immensely important to the general car consumers if they are to be relevant (or meaningful). When it comes to establishing a sense of difference though, the sense of design and premium pricing contributes more.