CREATING POWERFUL BRANDS IN A NEW MARKETING WORLD: Five Golden Rules

1. CREATING POWERFUL BRANDS
IN A NEW MARKETING WORLD:
Five Golden Rules
Kevin Lane Keller
Tuck School of Business
Dartmouth College
1
STIMA
International Marketing Congress
December 5, 2014

2. One-Time Market Leaders
2

3. Successful Challengers
3

4. 4
Five Golden Rules of
Branding
 The customer is not in charge … and
companies are more empowered too
 Simplify … but don’t oversimplify
 Storytelling is nice … but great products
and services are better
 There is no silver bullet … mix and match
activities around a brand promise
 Too much change or not enough change is
deadly … strike the right balance between
continuity and change

5. 1. The Customer is Not in
Charge
 Consumers are obviously more empowered
 They have the ability to collect information online, check reviews,
and do all kinds of things that they could never do before.
 But most customers have no interest in being
the “de facto brand manager” of Brand X.
 They already have a job, a family and many other things that
matter much, much more!
 Certainly some people do want to get more
involved with a brand
 Companies should do all they can to accommodate them in the
right way
 But the fact is it’s only some of the people with
some of the brands and even then only some of
the time. 5

6. Brand Engagement Pyramid
Highly
Engaged
Moderately
Engaged
Not Very
or At All Engaged
Brand
Consumers
1
2
3

7. Nike “Trickle Down” Engagement Model
Top
Athletes
“Weekend
Warriors”
Casual Athletes
(“If you have a body, you are an athlete”)
Established Broad Access Point

8. Nike Innovations: Developing
an “Ecosystem of Engagement”
8
Nike+ FuelBand
NIKEiD Nike+ iPod
“Measurable Personal Improvement through Exercise”

9. 1. … Companies are
Being Empowered Too!
 Technology is empowering companies
as much as it is empowering
consumers.
 That can be a very good thing. The
hope is that this will generate more
productive exchanges.
 Companies can create products and deliver
marketing programs that better satisfy customers.
 Customers can better understand what suits their
needs and inform companies in return.
9

10. 2. Simplify …
But Don’t Oversimplify
 Beware of one word “brand
essences”
 Purity of purpose – good
 Adequately accommodating consumer and
competitive dynamics – bad
 The reality is … most consumers
consider multiple factors and
multiple brands in making choices
10

11. 11
Competitive
Brand Positioning Model
 Develop 3-5 unique points-of-difference
 Desirable to consumers
 Deliverable by the company
 Differentiated from competitors
 Establish 2-4 shared points-of-parity
 Negate competitor PODs
 Overcome perceived vulnerabilities from own PODs
 Demonstrate category credentials
With Brian Sternthal &
Alice Tybout

12. Volvo
 Key point of difference
 Safety
 But a safe car can be a …
 Boring car
 Does Volvo need to be seen as
an exciting car?
 No … just not boring!
12

13. Uber
 Like many new
brands, Uber must
establish points-of-parity
to allow
points-of-difference
to matter
 Points-of-parity
 Safe
 Legal
 Trusted
 Point-of-difference
 Convenient
 Comfortable
 Cool
13

14. 14
BMW
 Positioned as unique combination of
luxury & performance
 Luxury cars (e.g., Lexus)
 POP – Luxury
 POD – Performance
 Sports cars (e.g., Porsche)
 POP – Performance
 POD – Luxury & Comfort
 Reflected in U.S. slogan as the
“Ultimate Driving Machine”

15. 15
Subway
 Positioned as unique combination of
taste, health, & convenience
 Fast food competitors (e.g.,
McDonald’s)
 POP – convenience & taste
 POD – health
 Health food competitors
 POP – health
 POD – taste & convenience

16. Coke’s Misstep
 Coca-Cola “Real” campaign is
designed to reflect “genuine, authentic
moments in life and the natural role
the brand plays in them.” The
campaign will vary from country to
country to reflect the differences in
reality.
 Chris Lowe, CMO, January 2003
16

17. What Happened to Coke?
 “In one ad, actress Penelope Cruz
guzzled a Coke and belched.”
 “In another ad, a sweaty basketball
player stuck a cold can of Coke in his
armpit before offering it to his buddy.”
 “Those spots, hallmarks of the doomed
"Real" campaign were just the latest in
a series of advertising mishaps at
Coke.”
17
Wall Street Journal, March 30, 2006

18. 18
Coca-Cola Positioning
 Points-of-difference
 Distinctive taste profile
 Optimistic view of life
 Classic, iconic symbolism & imagery
 Points-of-parity
 Contemporary, up-to-date
 Refreshing flavor
 Brand mantra
 “Uniquely Optimistic Refreshment”
 Ad slogan
 “Coke Side of Life” (Marc Mathieu)
 “Open Happiness”

19. 19
Brand Mantras
 Short 3-to-5 word phrases that capture the
irrefutable essence or spirit of the brand.
 Brand mantras typically are designed to
capture the brand’s points-of-difference,
i.e., what is unique about the brand.
 Key criteria
 Communicate
 Simplify
 Inspire

20. 20
Brand Mantra Examples
 Nike
 “Authentic Athletic
Performance”
 Disney
 “Fun Family
Entertainment”
 American Express
 “Worldclass Service,
Personal Recognition”

21. 21
GE Brand
Tools
Brand Strategy:
GE Brand Book
Brand Look & Feel:
GE Identity Program

22. 3. Storytelling is Nice … But
Great Products & Services Are
Better
 Storytelling can pull together various
aspects of a brand and provide an
appealing brand backdrop
 But fundamentally … the strongest
brands are also rooted in product
performance
 Emotional appeals are often most
effective when linked to functional
benefits … it’s not either/or!
22

23. Power of
Strong Value Propositions
23
VS. VS.

24. Pampers
 Pampers evolved from a
functional to an emotional
positioning:
 Absorbency & dry baby
 “Caring for Baby’s Development”
 Pampers changed marketing
program accordingly
 Product development
 Marketing communications

25. Laundry
Products Hair Care Baby Wash /
Caring For
Your Baby’s
Development
Home
Furnishings
& Travel
Strollers/Walkers Beds/Cribs Bedding
Stimulation
&
Sun Care Oral Care
Skin Care Soap
Learning
Care Diapering
& Changing
Managing
& Treating
Illnesses
Safety
Clothing
High Chairs
Changing Tables
Videos / Music
Toys / Books
Day Care/Baby
Sitting
Sensors to Locate
Child: safe zone, etc
RX
Diaper Rash Cream
Diaper Bags
Diaper Disposal
Odor Eliminator and
Air Products
Baby Water
Infant Juices /
Drinks
Baby Vitamins
Sterilizing
Products
Gates / Locks /
Intercoms / Monitors
Prepared/Dried/Other Formula Bottles/Nipples
Breast Pumps Baby Foods
Breast Pads
Feeding Access
Disposables
Illness Detection
Sensors: e.g. ear
infect., dehydration
Mom Hand
Cleaners
Infant/Toddler
CarSeats
Household Safety
Access
Diapers / Wipes
Bibs
Mattress
Baby Care NBD “Where to Play” Map (North America) June 6, 2002
Disp Accessories - Bed
Mats, Changing Mats, etc
Personal
Cleansing
Feeding,
Nutrition &
Water
OTC Medicine
Home Adjacent
Shoes Clothing
In-Market Staffed Project
Re-hydration
Drinks Pedialite
Legend for Colors:
Pregnant/Lactant
Woman’s Nutrition
Feeding Access
Durables
Surface Cleaners -
Clean ‘n Play
Baby
Environment
& Hygiene
Toilet Training
Accessories (Potty)
Insurance &
Other services
Far Off Equity
Illness Detection
Sensors: e.g. SIDS,
vital signs, etc
Wound Patch
Legend for Borders: TBD Fit w/ Pampers

26. Pampers Communications
26

27. Importance of Blending
Functional & Emotional
27
Facilitates
growth
outside the
category
More abstract
positioning
Facilitates
choice
inside the
category
More concrete
positioning

28. Products Can Always Be
Differentiated
 Must stay innovative and relevant
in product and service
development
 There are so many means of
product and service
differentiation
 Must always aspire to push boundaries
and better achieve potential & the “ideal”
product or service
28

29. Warby Parker
 With material for frames from a family-owned
Italian company, assembly in China, and no
middleman, it promises quality comparable to
that of well-known designers at a fraction of the
cost.
 Warby Parker eyeglasses sell for a flat $95 (or
$145 for titanium frames) with free shipping and
free returns.
 To assess fit, customers can use a virtual try-on
tool employing facial recognition technology or
have up to five sample pairs shipped to try on in
person.
 Promoting “eyewear with a purpose,” Warby
29
Parker donates one pair for every pair sold.

30. 30

31. Brand Resonance Model
RELATIONSHIPS:
What about you & me?
RESPONSE:
What about you?
MEANING:
What are you?
IDENTITY:
Who are you?
Intense,
Active Loyalty
Positive,
Accessible
Reactions
Points-of-Parity
& Difference
Deep, Broad
Brand
Awareness
Resonance
Judgments Feelings
Performance Imagery
Salience
Stages of Brand
Development
Branding
Objective at
Each Stage
4
3
2
1
Building Blocks

32. 4. There is No Silver Bullet … Mix
and Match Around a Brand Promise
 Brands benefit from a range of
marketing activities
 Develop fully integrated channel and
communication strategies
 Make the whole of the branding
program greater than the sum of
the parts
 “Mix & match” to optimally blend strengths &
weaknesses
32

33. MARKETING COMMUNICATION INTEGRATION
Traditional,
mass media
communications
“Real world,”
experiential
communications
Online,
interactive
communications
Mobile,
interactive
communications

34. Integrating
Modern Communications
 Traditional, mass media communications
 Greater control
 Online, interactive communications
 Greater relevance
 “Real world,” experiential
communications
 Greater engagement
 Mobile, interactive communications
 Greater timeliness
34

35. 35
“The AXE Effect”
 Online, created interactive viral campaign
with low-budget videos and girls being
exaggeratedly attracted to guys
 On-air, ran racy, award-winning TV ads
 Off-air, has concentrated grassroots
marketing efforts on college campuses
with brand ambassadors who hand out
products, host parties and generate buzz
 With mobile, a Twitter account dispenses
advice and giveaways

36. 36

37. Oreo
“Celebrate the Kid Inside”
 In the U.S., the highly successful
campaign was buoyed by celebrations of
the brand’s 100th birthday anniversary.
 Ads and in-store contests created a
birthday party atmosphere and focused
on the “Twist, Lick and Dunk” method of
eating Oreos with milk.
 The 100-day “Daily Twist” promotion
paired the brand with various cultural
images and icons.
 The Oreo birthday page received 25
million likes and sales increased 25
percent.
37

38. 38
“Last night, Oreo
hit it big with a
real-time
marketing effort
that became the
talk–and tweet–
of the Super
Bowl.”

39. Oreo
“Togetherness” in India
 Launch ads reflected Oreo’s updated
global positioning based on moments of
togetherness and featured a father and
son in the “twist, lick, dunk” ritual.
 Social media has Indian parents sign an
“Oreo Togetherness Pledge” promising
to spend more quality time with their
children.
 An Oreo Togetherness Bus roams the
country providing a platform for parents
and children to catch fun family
moments.
39

40. 40
Benefits of
Cause Marketing
 Improving social welfare (“win-win”)
 Creating differentiated brand positions
 Eliciting emotional responses from
consumers
 Building strong bonds with consumers
 Enhance company’s public image
 Create reservoir of good will
 Boost employee morale
 Drive sales

41. Five Classic Cause
Programs
 American Express &
Charge Against Hunger
 The Avon Breast Cancer Crusade
 Ronald McDonald House
Charities
 Tesco – Computers for Schools
 British Airways – Change For
Good
41

42. 42

43. 5. Avoid Too Much Change or Not Enough
Change: Strike the Right Balance
Between Continuity and Change
 Manage brands for the long-run
 Avoid over-exposing, over-extending, over-modernizing,
over-discounting
 Avoid death by “1000 cuts”
 It is easy to take advantage of a
successful brand
 “The brand is so strong, so what if this is ‘off
brand’? How can this one little decision
matter?”
 Multiple compromises add up and
can create big problems 43

44. 44
Respect the Brand
 Understand and appreciate the
brand and what it could be
 Cultivate internal brand experts and
advocates
 Preserve the legacy and integrity of the
founder

45. Help The Brand
Reach its Potential
 Develop appropriately
aspirational brand positioning
 Have a “foot in the present” and a
“foot in the future”
 With the optimal “weight” on each foot
45

46. What Are These Brand
Potentials?
46

47. 47
Cisco
 Cisco seeks to transform its
image
 … from largest seller of switches and
routers to …
 a provider of voice, video, data and
wireless products to facilitate
collaboration
 Launched $100 million
marketing campaign
 New logo, TV & print ads and product
placement (“The Office”), Web blogs,
chat rooms
 “Welcome to the Human Network”

48. 48
But … Don’t Forget the
“Spandex Rule”
 “Just because you
can … doesn’t
mean you should!”
 Scott Bedbury, formerly
VP-advertising Nike &
VP-marketing
Starbucks

49. Virgin
 Brand strategy is to enter
categories where customers
needs are not well met and …
 Do different things &
 Do things differently
49

50. 50

51. Virgin Mistake?
 Compromising Brand Promise
Too Often?
 Going into markets where consumer needs
are being reasonably well-met by others
 Over-Drawing Brand “Bank
Account” With Consumers?
 “Good things” – deposits
 “Bad things” – withdrawals

52. What’s a Brand Worth?
 It’s worth what you can do with it …
 Consider Snapple
 Quaker buys Snapple for $1.7 billion in 1994
 Sold to Triarc for $300 million in 1997
 Sold to Cadbury-Schweppes (with Mistic, Royal
Crown, etc.) for $1.45 billion in 2000
 Snapple value estimated at $1 billion
52

53. Snapple Was a
Strong Brand
 Established “New
Age” beverage
category
 Points-of-difference
 All-natural
 Variety
 Down-to-earth
 Quirky
 Points-of-parity
 Quality
 Accessible
 Taste
 Mantra
 “Fun, Fresh, & Real”
 Well-executed
marketing program
 Distinctive, wide-mouthed
bottles
 Constant innovation
 Humorous “Snapple
Lady” ads
 Oxymoronic
spokespeople
 Rush Limbaugh
 Howards Stern

54. Quaker Changes
 Cut number of flavors (and didn’t introduce new
products quickly enough)
 Couldn’t capitalize on independent distribution
system
 Changed packaging to accommodate
supermarkets (e.g., 64 oz. bottles)
 Changed advertising & promotions (targeted
Coke & Pepsi)
 Fired Rush Limbaugh, Howard Stern, & Wendy
 Ignored seasonality of the business
 Underestimated competition & market trends

55. Triarc
Revitalization Strategies
 Emphasize seasonality – dove into
summer
 Motivate distribution network
 Drop supermarket packaging
 Develop product innovations
 Whipper Snapple, Elements, Farms
 Re-engage advertising & promotions
 Update graphics on packaging

56. 56
The Five Golden Rules of
Branding
 The customer is not in charge … companies
are also becoming more empowered
 Simplify … but don’t oversimplify
 Storytelling is nice … but great products
and services are better
 There is no silver bullet and there are no
short-cuts … mix and match around a brand
promise
 Strike the right balance between continuity
and change … your past and your future

57. 57
Final Thought
 Good branding is an art and a science
 Success in brand marketing involves:
 Achieving balance in all brand planning and
execution
 Finding the “win–win” sweet spots!
 By being …
 Analytical & systematic – applying key concepts
 Creative & inspired – guided by a philosophy

58. Thank You &
Good Luck!
58