ParexUSA, Parex, LaHabra - Strategic Brand Development.
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ParexUSA, an innovator and manufacturer of Exterior Insulation Finish Systems and Stucco Solutions, issued an RFP to “Develop an intelligent, high-level and expansive long-term brand strategy as an extension of its Envision philosophy.” This is the winning presentation made to ParexUSA's management team recommending a new brand strategy and positioning: “ParexUSA, Build Better With Science.” Now ParexUSA can build a better brand.
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ParexUSA, Parex, LaHabra - Strategic Brand Development.
- 2. RR 2 Assignment 2 1. Establish a long term brand strategy 2. Develop a new high‐level approach 3. Elevate the Parex brand to a higher level 4. Position LaHabra as the stucco brand
- 4. RR 4 What is the difference between sales and marketing? Sales 4 “Sales” happen in the streets, stores, offices, malls, at lunch or dinner in restaurants, on the golf course, on the phone, etc. Marketing “Marketing” happens in the mind of the consumer • Brand Strategy and Positioning – Strategy: what the brand stands for – Positioning: how we want consumers to think and feel about the brand – Positioning: answers three critical questions 1. Target market 2. Competitive frame 3. Leverage
- 5. RR 5 Left brain reality vs. right brain perception “Left brain” management deals with reality “Right brain” marketing deals with perception Left brain management believes . . . “If we change the reality of the brand, that will easily change consumers’ perception of the brand.” Right brain marketers know that’s NOT true. Changing “perception” is the most difficult job in marketing 5 Right Brain Functions • Holistic thought • Intuition • Creativity • Art and music Left and Right Brain Functions Left Brain Functions • Analytic thought • Logic • Language • Science and math
- 6. RR Left brain reality vs. right brain perception, cont’d What’s a Hyundai? • Ask anyone and they’ll say, “A car company that’s doing great because it’s inexpensive and has a great warranty” • Management changed the “reality” of the brand by introducing the Genesis and Equus • But, they couldn’t change the perception “Hey Honey, I’m getting you a $75,000 Hyundai instead of a Mercedes‐Benz” • How will that go over? • Perception vs. reality 66 Genesis: $40,000 Equus: $75,000 Sonata: $21,195 ‐ $27,595
- 7. RR 7 Left brain reality vs. right brain perception, cont’d What’s a Volkswagen? • In the mind, it’s a small, cheap, reliable car • That’s what made the Beetle such a huge success Management changed reality • Introduced the $65,000+ Phaeton • Reviewers loved it – it’s a great car • Competition: Mercedes‐Benz “S” class, Lexus LS, BMW 7‐Series • The problem – perception of a VW • Results were a disaster – in 5 years VW sold only 3,354 Phaetons in the U.S. “Hey Honey, I‘m getting you a $65,000 VW instead of a Mercedes‐Benz” • How will that go over? • Perception vs. reality 7 VW Beetle: $20,790 VW Phaeton: $65,000
- 8. RR 8 Left brain reality vs. right brain perception, cont’d What’s a Toyota? • The average person will say, “A reliable car” What’s a Prius? • The best “hybrid” car What’s a Scion? • The best “youth” car What’s a Mercedes‐Benz? • The best “luxury” car Four brands . . . four leaders 8 Camry: $22,235 – $30,465 FR‐S: $24,500 S‐Class: $93,255 v Three : $27,415
- 9. RR 9 Left brain reality vs. right brain perception, cont’d How about hamburgers? • Research shows Burger King makes a better burger than McDonalds – it doesn’t matter • McDonalds has a better brand How about coffee? • Consumer Reports says McDonalds makes a better coffee than Starbucks – it doesn’t matter • Starbucks has a better brand What about cola? • All taste tests show consumers prefer the taste of Pepsi compared to Coca‐ Cola, it is a better product – it doesn’t matter • Coca‐Cola has a better brand 9 Vs. Vs. Vs. Reality Perception
- 10. RR 10 1. It’s product‐centric – not brand‐centric 2. It’s a “generic, parity claim” – any competitor can make it 3. It’s not unique or differentiating 4. It’s not ownable or defensible 5. In fact, we understand competitors are adopting this direction 6. Why are we promoting generic, parity product attributes? 7. Instead, promote what’s unique and differentiating What about Parex USA? What’s wrong with a strategy promoting the product attributes, “Any shape. Any color. Any texture.” 10
- 11. RR 11 By promoting a relevant brand promise, the entire ParexUSA family will be more successful This is a good brand promise • It has both emotional and rational appeal • It supports two of the three brand pillars: state‐of‐the‐art technology and innovation The problem is . . . it’s invisible • Rather than promoting the “brand promise”, the Company is promoting generic, parity product attributes: “Any shape. Any color. Any texture.” This is the wrong strategy 11 “As ParexUSA moves into the future the focus will be on state‐of‐the‐art technology, innovation, and unsurpassed customer service.” – Rodrigo Lacerda President and CEO “If you can envision it, ParexUSA can bring it to life.” What’s a ParexUSA ParexUSA brand promise
- 12. !!! !!! 12 TAKE AWAY Better “brands” always win in the marketplace, better “products” seldom do 12
- 14. RR 14 What’s a Parex? • Website: “Exterior Insulation Finishing Systems (EIFS)” – A generic descriptor • Campaign communication: “Envision . . . Any shape. Any color. Any texture.” A parity product descriptor • Google: “A leading EIFS and coatings manufacturer, who entered the industry in 1986 with a complete line of EIFS products and a focus on innovation, quality and . . .” – A parity/generic description most competitors are using What’s a LaHabra? • Website: “Stucco Solutions” – A generic descriptor • Campaign communication: “Envision . . . Any shape. Any color. Any texture.” A parity product descriptor • Google: “LaHabra Stucco Solutions, the leading manufacturer of exterior stucco and Exterior Insulation Finish Systems (EIFS) products, has been the leading . . .” – A parity/generic description most competitors are using Key observations of reality vs. perception vs. parity 14
- 15. RR Key observations of reality vs. perception vs. parity, cont’d 15 The Problem – Promoting parity/generic product attributes will not build the brand • They’re not unique or differentiating • They’re not ownable or defensible The Solution – Company should be taking the high road • Promoting brand strengths • Positioning itself as a leader • Leverage unique and differentiated attributes and benefits
- 18. RR 18 Based on key competitors’ positioning lines and descriptions, there’s a gap and opportunity KEY OBSERVATION: • Not one company is positioning itself as the “performance” leader, or “innovator”, or “state‐of‐ the‐art”, or “technology” leader – this leaves a gap and opportunity • BASF – “The Chemical Company” • Dryvit – “Energy Efficient Exteriors Since 1969” • Parex – “Any shape. Any color. Any texture.” • Senergy (A BASF Co.) – No tag • Sto – “Building with conscience”
- 19. RR ParexUSA, Parex and LaHabra each has “state‐of‐the‐art technology” and “innovations” to be leveraged 2007 – 2009 2009 – 2010 2010 – 2011 2012 2013 • Select Finishes • NTS (New Tech. Stucco) • Tuffstone Granite • Wall Sanded One‐Coat & BasiC926 Sanded Scratch & Brown • Stucco Level Coat • Armourwall • Stucco Ass. • DPR Optimum Premium Acrylic Finishes 45% more polymer content • 121 Optimum Base Coat and Adhesive • Hydro Guard SP‐1 • Accel‐Pak • 121 Optimum Wet Base Coat and Adhesive • Perma‐Flex Stucco Grade Acrylic Finish • QuickBase EIFS Base Coat & Adhesive in a box – first product of its kind • LaHabra EIFS • Accel‐Dry • Allegro II • Burst • 856 XLF • Ultra e‐lastic Finishes • WeatherSeal BG • AquaSol Enhanced DPR Acrylic Finish and Coating with Enhanced Hydrophobic and Photocatalytic Technology • ColorFast Pigment System • MicaMax 3 – First all‐in‐ one acrylic finish, basecoat, EIFS adhesive • Fracture Guard 7000 – first liquid membrane for crack isolation up to 3/8” • 121 Cool Base and 121 Dry Hi • Pro Patch XF
- 20. RR 20 Among architects, Parex/LaHabra is one of the least familiar EIFS/Stucco brands 20 Source: Architect & Builder magazines’ 2013 Brand Use Study N=225 Registered Architects According to Architect and Builder magazines’ 2013 Brand Use Study, architects are . . . • Most familiar with Dryvit • Least familiar with Parex/LaHabra and Omega Brand Familiarity
- 21. RR Architects’ EIFS/Stucco “brand usage” in the past three years . . . top three brands Dryvit used most often BASF and Omega least often Parex/LaHabra was used by 4 percent of architects surveyed in 2012, and tied with . . . • Finestone (4%) • Senergy (4%) Parex/LaHabra did not have sufficient mentions to be in the top three 2011 or 2013 surveys 2121 Source: Architect & Builder magazines’ 2013 Brand Use Study N=225 Registered Architects 0% 10% 20% 30% 40% 50% BASF DryvitFinestone Omega Parex/LaHabra Senergy Sto 2011 2012 2013 Brand Usage
- 22. RR 22 Architects’ EIFS/Stucco “brands specified/used most” past three years . . . top three brands Dryvit dominated all brands for all three years Sto made significant headway in 2013 Parex/LaHabra captured 3 percent of mentions in 2011 Parex/LaHabra had insufficient mentions to rank among top three brands in 2012 or 2013 22 Source: Architect & Builder magazines’ 2013 Brand Use Study N=225 Registered Architects 0% 5% 10% 15% 20% 25% BASF DryvitFinestone Omega Parex/LaHabra Senergy Sto 2011 2012 2013 Brands Specified/Used Most
- 23. !!! !!! 2323 Parex USA, Parex, LaHabra Introducing the new brand strategy and positioning Part 3
- 25. RR Anatomy of a great positioning line is . . . Build Better with Science.™ An aspirational promiseRelevant, unique, differentiating Ownable and defensible. (Based on a multitude of proof statements) Appropriate for all divisions and levels of the organization Is timeless. (As long as the Company produces state-of-the- art, innovative products, the brand promise and positioning line is valid) Reflects the Company’s DNA
- 26. RR This new high‐level approach is an evolution of the Envision campaign 26 Brand building should revolve around a single, aspirational “brand” promise, not “product” attribute A relevant, unique, and defensible brand promise will lift all brands simultaneously Proposed key messaging will focus on how ParexUSA “science” makes • The product stronger • More durable • More colorfast • Easier to work with • And many other benefits Parex USA LaHabraParex Merkrete Build Better with Science. ™
- 28. RR 28 How a hammer and nail builds a brand 28 The “hammer” is an ownable visual representation (not necessarily a logo) The “nail” is the words The Marlboro cowboy is the emotional hammer and the words, “Come to where the flavor is” is the nail Coke’s unique contoured bottle is their visual hammer, “It’s the real thing.” slogan is their nail
- 29. RR How a hammer and nail builds a brand, cont’d Where would Aflac be without the duck? • Before the duck, Aflac had 12% name recognition • After the duck, 94% name recognition Where would Susan G. Komen for the Cure be without the pink ribbon? • The pink ribbon is the visual hammer • Today, it is the world’s largest non‐profit 2929
- 31. RR 31 How a hammer and nail builds a brand, cont. E‐Trades’ hammer is the talking baby, their nail – “So easy even a baby can do it” Ralph Lauren is a good brand, but it’s a much better brand with a visual hammer 31
- 34. RR Build Better with Science.™ I HAVE A STORY FOR YOU. This campaign tells the story of “Building Better with Science.” What it means to architects, designers, building owners, and contractors. All of the stories are told from their perspective. Their stories are interesting and factual – telling how the science behind the product makes it “stronger,” “more durable,” “more colorfast,” “faster drying,” “easier‐to‐use,” and any number of other attributes and benefits. Why did they select ParexUSA products? We’ll find out as they tell their story noting specific product and performance characteristics that proved to be critical to the success of their project. Ultimately, we envision this campaign for all ParexUSA products – Parex, LaHabra, Merkrete, El Rey, TEIFs and Variance. Using an iconic red chair as a visual hammer, a signature look will be created establishing continuity for the campaign for years to come – for any product, any target audience, any medium, any country. Imagine, an architect, like above, telling her story on the 7th Street bridge in downtown Los Angeles. A designer in the same red chair in Golden Gate Park. A contractor in the red chair, with hard hat, in Times Square. Each person can be shot against a green screen with any cityscape of the world dropped‐in – allowing for a truly global campaign. This high‐impact, clean design is guaranteed to substantially raise brand visibility, brand stature and create the perception of a category leader. The visual hammer The nail
- 40. RR LaHabra national rollout considerations Co‐sponsored regional roadshows Regional tradeshows Spot market CRM program targeting builders • 3‐dimensional, high‐impact, engaging piece • Builds awareness, builds the database, generates leads Regional webinars Public/press relations with spot market trade pubs and Business Journals Push email campaign 40
- 41. RR Establishing brands and sub‐brands Unify top level brand strategy • “Build Better with Science” Take the high‐road and promote unique and differentiating benefits relevant to each sub‐brand and core target audience 41
- 42. RR 42 Next Steps
- 44. RR Immediate next steps Appoint TSA AOR Discuss benefits • Retainer‐based relationship • Project based • Time and material Agree to compensation formula Get to work 44 + A Winning Combination
- 45. RR 45