The Startup guide to branding

Dr. Marius Luedicke
The Start-up Guide to Branding
Cass Business School & Cass Consulting
City University London
m.luedicke@city.ac.uk
+44 20 7040 8687

(c) Dr. Marius Luedicke - Cass Business School - M.Luedicke@city.ac.uk
PD Dr. Marius Luedicke, Cass Business School
Your Branding Coach for This Evening
2
‣ Made in Münster, Germany, in 1974
‣ BSc, MSc in Marketing and Information Technology
‣ Founder of MicroTeam - IT Solutions
‣ Consultant at Informationobjects AG, Switzerland
‣ Doctorate in St. Gallen, Switzerland
‣ Marketing manager for m-broker.de
‣ Habilitation in Innsbruck, Austria
‣ Research on consumer moralism, acculturation, and
conflict cited in New York Times, Wired, HuffPo, etc.
‣ Consults start-ups in branding questions.

The Four Goals of Our Unrulyversity Evening
3
1. Understand what a brand is and why proactive branding
pays off.
2. Learn a brand new method for analyzing and developing
brands.
3. Play with this method using your own (or a colleagues)
brand.
!

Hands On #1
4
• Get together in groups of 3
• Take one of the paper-, pen-, and sticker-stacks
• Name-tag and introduce yourself to the group
• Agree on the brand you wish to work on today

Why Does Branding Matter?
5

* Source: http://uk.finance.yahoo.com/q?s=SBUX(c) Dr. Marius Luedicke - Cass Business School - M.Luedicke@city.ac.uk 6
A. To make customers buy of, and engage more with,
your products, services, projects, or ideas
Let us Assume That Your Goals Are:
B. To attract the most brilliant employees
C. To get funding from the prettiest angels
D. To work with the best business partners
E. To raise, adorn, and sell the bride

(c) Dr. Marius Luedicke - Cass Business School - M.Luedicke@city.ac.uk 7
✓ Perceived your products or services as the best in the category
(preference).
✓ Were highly loyal and frequent buyers that ignore your
competitors‘ offerings (loyalty).
✓ Were passionate about - or even in love with - your company and
its offerings (relationship).
✓ Were engaged with the company and fellow product enthusiasts
(community).
✓ Praised your offerings online and told their Facebook friends
about it (word of mouth).
Then It Would Be Useful if Your Stakeholders:

„Brand Love“

Source: Batra, Ahuvia, Bagozzi, JM, 2012(c) Dr. Marius Luedicke - Cass Business School - M.Luedicke@city.ac.uk 9
„Brand Love“*
Unrulyversity

Four reasons of why great branding helps you to achieve
these goals:
10

1. Customers use brands for finding (more of) the
right offerings
11
2. build relationships with and through brands
3. use the brand for their identity construction
4. love buying from and consuming great brands

Brands ensure recognition (and thus repurchase) of desired characteristics
12
If the brand is liked and
consistently recognizable,
consumers will find it in
this clutter and buy (more
of) it.
1. Consumers Use Brands for Finding (more of)
the Right Offerings

Similar effects work
here, yet with less
company control
over brand value
communication.
1. Customers Use Brands for Finding (more of)
the Right Offerings

2. Customers build relationships with and through
brands
14
1. use brands as clues to find (more of) the right offerings

Consumers perceive brands similar to persons.
15
2. Customers Build Relationships With Brands
Human Personality Factors (Big 5)
oExtraversion
oAgreeableness
oConscientiousness
oOpenness
oNeuroticism
*Source: Aaker (1997). Journal of Marketing Research
Dimensions of Brand Personality
oExcitement (MTV)
oSincerity (Hallmark cards)
oCompetence (Wall Street Journal)
oSophistication (Mercedes)
oRuggedness (Levi’s, Harley)

The big five break down into more specific personality characteristics

Excitement 1 5
Sincerity 1 5
Competence 1 5
Sophistication 1 5
Ruggedness 1 5
17
Try to characterize Virgin atlantic

Excitement 1 5
Sincerity 1 5
Competence 1 5
Sophistication 1 5
Ruggedness 1 5
18
And Compare to American Airlines
Consumer prefer brands with
personalities they like and are
similar to themselves.

Think about it!
19
If brands are like people, do we have a relationship
with our favorite brands? What are yours?

!
“Relationship principles have
virtually replaced short-term
exchange notions in both
marketing thought and practice.”
(Susan Fournier 1998, p. 343)
Source: Fournier (1998). Journal of Consumer Research
Almost like building relationships with people, we build relationships with brands

Citation - Key Message - etc
21
These relationships can have the following forms
Source: Fournier (1998). Journal of Consumer Research

Committed partnership? Best friendship? Secret love affair?
Strong brand relationships
raise loyalty, switching
barriers, lower price
elasticity, and consumer
engagement.

3. Customers use brands for identity construction.
23

What is she like?
3. Customers use Brands for Identity Construction
24

What is she like now?

Often consumers use brand bundles to create particular and
remarkably similar styles
26*Source: http://www.exactitudes.com/index.php?/series/detail/9
„Young Executives“*

Even radical individualists rely on remarkably similar sets of cool brands
27
Source: Here
Brands with strong identity
relevance (and conflict
potential) enjoy the highest
brand enthusiasm and
brand engagement. But that
might not always last.

Consumers choose brands that represent their moral beliefs
28
Ideology of American Exceptionalism
Hummer Love
Hummer Hate

Customers choose brands for signaling skill and competence
29
„No one has ever been fired for
choosing IBM“

4. Customers love buying from and consuming
great brands
30

4. Customers Love Buying From And Consuming
Great Brands
31
Consumers spend increasing amounts of time searching for new products,
stories, and ideas offered by brands.

Great Brands
32*Sources: http://newavenuesmag.wordpress.com/2011/01/31/are-you-a-compulsive-spender/
Consumers spend more
time and money on, and
engage more with, great
brands. This makes
consumers great sources
of innovation and free
advertising, (but also
powerful brand assassins).

* Source: HereCass Business School - Unrulyversity - 5/13 - m.luedicke@city.ac.uk 33
Great Brands

They engage with brands at ever more touchpoints
4. Customers Love Buying From And Consuming Great
Brands
Source: Interbrand London

Four Ways in which branding matters to
Start-Ups and other companies
35

Brand are almost „magical“ devices for charging higher prices.*
Business Effect 1: Strong Brands Charge Higher Prices
36* According to Prof. Diego Rinallo

0
13
25
38
50
Nespresso Illy Lavazza Eduscho Jacobs
24 Euro
13 Euro
9 Euro
6 Euro
43 Euro
The 4 Business Effects: Charge higher prices
Nespresso earns 80% more per kilo coffee than its next competitor
* Source: Institute of Brand Logic, Cass Lecture 2013

Acquired brands are accounted as goodwill. Self-made brands are not.
Business Effect 2: Brand Names Are Assets
38
77,7 %
Interbrand‘s Brand Value for Google
accounts for
!
!
of the company‘s total assets (89 bn) and for
!
!
of its market capitalization. The brand is not
accounted for by Google as goodwill as it is
not an acquired brand.
29,8 %
Source: http://www.google.com/finance?fstype=bi&cid=694653

Strong brands can extend beyond its core market into more peripheral
markets
Business Effect 3: Brands can Extend Further
39
„Symbolic brands can be extended into a wider variety of contexts.“
(Hoeffler and Keller 2003, p 429)
* Source: http://fashionempiregvdb.blogspot.co.uk/2011/02/louis-vuitton-runway-paris-fashion-week.html

Even very unlikely extensions might work.
Business Effect 3: Brands can Extend Better
40* Get „the smell of testosterone“ here

Fancy a KFC ground chicken coffee?
Business Effect 3: Brands can Extend Further
41
?

Business Effect 4: Brands Win Elections
42* Source: http://www.berlin-mindplayers.de/2006/02/04/profitgier-versus-moral/

What exactly are Brands?
43

Think about it!
44
What do you consider part of „our brand“ in your
company? And who takes care of the brand?

The perspective of the American Marketing Association
Brand: Defined
A brand is a „name, term, design, symbol,
or any other feature that identifies one
seller’s good or service as distinct from
those of other sellers.“
45

Brand: Defined
46Source: Kapferer, Jean Noel (2012), The new strategic brand management, p. 12
The perspective of Jean-Noel Kapferer, HEC Paris*
A brand is „a name that symbolizes a long-term
engagement, crusade or commitment to a unique
set of values, embedded into products, services and
behaviors, which make the organization, person or
product stand apart or stand out.“

!
!
“A Brand is a strategic asset that is key to long-
term performance and should be so managed”
!
Source: Aaker (1996), Building Strong Brands
Brand: Defined
The perspective of David Aaker, UC Berkeley, Prophet Consulting

How to Build a Brand?
48

How to Build a Brand: A Process
49
1. Analyze your brand or business idea and its environment
!
2. Define the brand‘s core and peripheral brand elements
!
3. Find a name
!
4. Create a logo
!
5. Trademark name/symbol and secure website
!
6. Start communicating through and about the brand
!
7. Evaluate and re-adjust your brand to changing conditions
!

The basic idea: Brands propel businesses through a dynamic interplay of three brand-defining „rotor
blade“ dimensions circling around the brand rotor‘s core.
Luedicke‘s Brand RotorTM Model for Brand Analysis and
Brand Strategy
Brand
Touchpoints
Brand
Thoughts
Brand
Cultures
The Brand’s
Strategic Environment
What
we do &
Why

Brands typically exist for a purpose*
1. Analyze your Brand and Its Environment
51
Brand
Touchpoints
Brand
Thoughts
Brand
Cultures
What
we do &
Why
See: Simon Sinek's Ted Talk
The center of all activity
• What is the brand’s main value
proposition (in simple words: what
does it sell/offer)?
• Why does the brand exist (see:
„People don’t care what you do, but
why you do it“*)

Hands On #2
52
At its core, what does your brand do and why?

Where and how does the brand exist in the material worlds and on
screens? Where are the key brand drivers and disruptions?
53
Brand
Touchpoints
What
we do &
Why
Customer journey:
the initial contact
with on- and offline
comms, stores,
products. Then
ownership and use
of products and
services‘ feel, smell,
sound, aesthetics,
taste. Disposal
experiences.
Exemplary Touchpoints:
• Branded products and services
• Branded stores and places
• Brand smells, taste, looks, sounds,
touch perceptions
• Brand-relevant people (CEO, etc.)
• Look and feel of websites, social
media, etc.
• The advertisements‘ look and feel

The „King of Shaves“ brand
Today‘s Example
54
Brand
Touchpoints
Brand
Thoughts
Brand
Cultures
Source: Will King. Founder and CEO
Brand
Touchpoints
„We
deliver the
world‘s best
shave.“*

Touchpoint Analysis: Findings
(based on quick and dirty rather than a close „shave“)
Today‘s Example
55
Brand
Touchpoints
Brand
Thoughts
Brand
Cultures
Brand
Touchpoints
„We
deliver the
world‘s best
shave.“*
• Wow, a new brand on the shelves that is NOT Gillette
or Wilkinson. Sparks curiosity and desire to try.
• Product appears overall „grown up“.
• Razor feels good and works great for some.
!
• Product: Same blue packaging. Very conventional.
Does not stand out. No „King“ theme or promise of „best
shave“
• Unpacking cheap plastic stand conveys Gillette-Type
cost-saving-meanings (not „word‘s best“)
• Product is ineffective on the testers skin. Clogs up
instantly and cannot be cleaned. Waste of money.
• Promo: Websites appear unorganized and unfocused.
Site kills the excitement of something new that arose in
the store. Same blue colors.
• Price: positioning incomprehensible. Is it cheaper?
• Place: Difficult to spot in a supermarket
+
-

Hands On #3
56
Study one online touchpoint of your brand. Focus on:
- Which experiences (5 senses) does it evoke?
- Which brand meanings do these experiences (not) convey
(e.g. quality, style, associations)?
- And explore if experiences and meanings harmonize with
the brand‘s core.
- Find 1 key driver and 1 key disruption

What are the brand‘s culture elements?
57
Brand
Touchpoints
What
we do &
Why
Brand
Cultures
Read texts, observe, buy,
unbox, use the brand and
observe its fans and
antagonists.
Culture Elements
• What is the brand’s personality
• How does it (not) behave
• Which relationship types does it
engage in
• Which cultural myths, stories, heroes,
archetypes does it evoke
• Does it attract community building
• Who are its enemies and conflicts
• What does the brand stand for (types
of people, styles, language, imagery,
etc.)

„We
deliver the
world‘s best
shave.“*
Brand
Cultures
The „King of Shaves“ brand culture
Today‘s Example
Business Professional
Style (+)
Corporate Brand Hate (+)
New Ads and Club Models
Technology
fascination (+)
Male grooming (+)
Source: Google PIctures. Man should be brave
Brand Personality (?)
Mo Trend (+)
Becks (-)
Brand Relationships (?)
Economic crisis (?)
Language Conventions (?)
What exactly is „The
world‘s best shave“ (?)
A good skincare routine is essential
to keep skin feeling smooth, soft
and hydrated. The award winning
King of Shaves range of skincare is
designed for men and covers every
need

Findings: Brand Culture Analysis
Today‘s Example
59
„We
deliver the
world‘s best
shave.“*
Brand
Cultures
+
-
• Main story: A challenger brand on the boring shelves.
• King is attractive for NOT being Gillette & Co.
• Men‘s frustration with shaving prices of major brands. Rip-off
feeling. Difficult to relate to the corporate brand.
• The „King“ brand name makes a compelling promise.
!
• Core promise, meaning and reason to exist are unclear.
• Personality: Brand appears a bit self-centered. Does not reach
out. Competent? Sincere? Exciting?
• Relationship: Difficult to connect with the brand. It‘s difficult to
judge it. Messages are contradictory across touchpoints.
• Does not stick to the „David vs Goliath“ story.
• Cheater? Promises not to play the 5-6-7-blades games etc. and
then does it.
• Language: Tries hard to be cool, but often flips back to
conventional „corporate“ selling language.

Hands On #4
60
Choose one cultural element of your brand.*
Focus on:
- Which stories and meanings does it convey?
- What are potential underlying myths, ideologies, relations, or
archetypes that render these meanings powerful?
- Do these meanings harmonize with each other and the brand‘s core?
* e.g. brand relationships, brand personality, usage
practices, stories that the brand tells or are told about
the brand, popular beliefs, myths, ideologies, conflicts

Which thoughts are consumers able to report about your brands?
61
Brand
Touchpoints
What
we do &
Why
Brand
Thoughts
Ask consumers what
they think about the
brand. Count opinions,
analyze customers‘
online reviews.
Exemplary Thoughts:
• Who are stakeholders (consumers,
suppliers, antagonists)
• What does the brand do for them
(why do they buy or not)
• What are their brand associations
(images, attitudes)
• Which experiences have
stakeholders made with the brand
• How well do they believe the brand
delivers on its promise?

„We
deliver the
world‘s best
shave.“*
Brand
Thoughts
The „King of Shaves“ brand thoughts
Today‘s Example
!
Consumer Survey:
!
Brand Personality Questions:
Excitement 1 - - - 5
Sincerity 1 - - - 5
Competence 1 - - - 5
Sophistication 1 - - - 5
Ruggedness 1 - - - 5
!
Brand Attitudes
- Would you recommend the King of Shaves
products to your friends?
1 (never) - - - 5 (absolutely)
!
Automated Web Content analysis
Scan the web for individual reviews that
express brand attitudes...
!
Customer Interviews:
!
Please tell me a bit about brand x. Show me
how you use it. Can we go buy one
together?

The „King of Shaves“ brand: Thoughts Analysis Findings
(insufficient data. web-based only)
Today‘s Example
63
„We
deliver the
world‘s best
shave.“*
Brand
Thoughts
+
-
!
!
• Consumers are excited about a „challenger“ brand. King
is NOT Gillette. A very strong starting position.
• Curiosity for a new brand in the market.
• „I purchased this in a store, thinking, hey - its the next
big thing.“
• Many customers hate shaving and look for better
experiences.
!
• Customer reviews inconclusive. Razor quality seems to
depend on facial hair type.
• Many consumers trash the brand online.
• Strong cheating emotions: „These razors are beyond
awful.“
• Next big thing: „I was very wrong.“

Hands On #5
64
Study customers‘ online brand reviews. Then think about
two questions for your first customer interview.
!
- Do consumers like your brand? If so, why?
- What are the brand drivers (most positive answers) and disruptions (most
negative ones).
- How do consumers evaluate their brand experiences (5 senses), quality,
price-value relationship, etc. at different touchpoints?
- Do they recommend your brand to their friends?
- Do consumers‘ answers harmonize with the brand‘s core?

What
we do &
why
nd
hpoints
Brand
Thoughts
Brand
Cultures
Competitor’s Actions:
Industry/Market reports, competitors‘ actions, new
market entrants, market shares, resources, key
innovations, ...
!
Socio-Cultural and Technological Changes:
Consumer behavior studies, consumer cultural
changes such as new morals, materialism,
ecological concerns, but also political changes,
new styles, influential people, new
technologies, ...
!
Economic Health of the brand:
Credits, brand revenues, profit, market share,
market potential, brand equity, price pressures, ...
!
Political changes:
New regulations can affect the brand both ways.
The Brand’s
Assess how changes in the market, cultural, and financial environment may
disrupt or drive your brand. Great ideas lurk here.

Well done!
Brand
Touchpoints
Brand
Thoughts
Brand
Cultures
The Brand’s
What
we do &
Why

67
!
!
3. Find a name
!
4. Create a logo
!
!
!
!

Hands On #6
68
Summarize the three key insights of your analysis that will
help you redefine/sharpen your brand.

Define in a few words what, in essence, this brand does and why.
2. Re/define the Brand‘s Core

2. Re/define the Brand‘s Core
70
What
we do &
Why
„Perfectly pre-portioned
Grand Cru Coffee
of highest quality“

2. Define the brand’s Touchpoints
71
Product look, feel, quality. Assortment. Customer journey from info, purchase,
consumption, to disposal. Style. Use Images for Illustration.
Brand
Touchpoints
„Perfectly
pre-portioned
Grand Cru
Coffee
of highest
quality“

2. Re/Define the Brand‘s Culture
72
Describe in words and images what kind of „person“
the brand is, which values it has, how it acts upon
them, and how it interacts with the audience.

73
ndpoints
„Perfectly
pre-portioned
Grand Cru
Coffee
of highest
quality“
Brand
Cultures
2. Re/define the Brand‘s Culture

ints
„Perfectly
pre-portioned
Grand Cru
Coffee
of highest
quality“
Brand
Cultures
74
Sophisticated
personality
Upper middle class
lifestyle
Linkages to the
performing arts
Luxury services and
experiences for everyone
Enabling the
perfect host
2. Re/define the Brand‘s Culture

nd
hpoints
„Perfectly
pre-portioned
Grand Cru
Coffee
of highest
quality“
Brand
Thoughts
Pleasure
Pride of the host
Clooney?
Core (permanent) Associations
Peripheral Associations
Perfect Coffee
Convenient
Luxurious
No alternatives (what else)?
2. Re/define the Brand Thoughts

2. Reconsider the Brand’s Strategic Environment
76
Competitive strategy:
Creator and leader in the category of pre-portioned
premium coffee for home and office consumption.
Uncontested premium positing within the category.
!
Socio-Cultural and Technological strategy:
Continuously innovating new coffee types and
communication strategies. Trying to adopt to
cultural changes? Technological leadership through
new machines and accessories.
!
Economic Strategy:
Premium pricing. A highly profitable business.
!
Political Strategy:
.…
Bran
Bra
Br

77
!
!
3. Find a name
!
4. Create a logo
!
!
!
!

Make sure the name says what it should say. Make sure it can grow with you
1. Find a Name
78
Note: The brand name should not simply describe the
product features (that would limit your growth), but
add extra meaning and distinction.

(c) Dr. Marius Luedicke - Cass Business School - M.Luedicke@city.ac.uk 79Source: Google Images. Find some background on some great brand names here
If you have big plans, make sure your name works in different contexts.
1. Find a Name

80
!
!
3. Find a name
!
4. Create a logo
!
!
!
!

These are considered „Great Logos“
2. Create a Logo
Crowdsource your logo from 120 £:
www.crowdspring.com

82
!
!
3. Find a name
!
4. Create a logo
!
!
!
!

(c) Dr. Marius Luedicke - Cass Business School - M.Luedicke@city.ac.uk 83Source: click here
NICE Classification of trademark domains. Updated every 5 years since 1957.
3. Trademark Your Brand Name and Logo

84
!
!
3. Find a name
!
4. Create a logo
!
!
!
!

All rotors convey meaning. Use the brand‘s core narrative to design
propelling products, stores, experiences, websites, and ads.
6. Start Communicating through and about...
85
What
we do &
why
Brand
Touchpoints
Brand
Thoughts
Brand
Cultures

Try to build stories based on emerging cultural material to
offer an alternative, rebellious, self-concept that eases
consumers‘ identity problems and, thus, creates brand
enthusiasm.*
6. Start Communicating
86*Learn more about that @ Cass Business School / or Unrulyversity
The latest „cultural advertising“ trick*

7. Use Available Tools for Assessing Brand Performance
87
What
we do &
why
Research Methods:
• Ethnographic research on consumption practices
• Group interviews
• (Participant) observation
• Media content analysis
• (Automated) online content analysis
• Historical analysis of brand and its context
• Go shopping to assess brand personality, relationship
practices, etc. at all touchpoints
!
Key Performance Indicators
• Assess the fit of brand and relevant culture
• Rate the brand relevance in culture
• Rate brand behavior
Research Methods:
• Survey research
• Top-of-Mind association interviews
• Laddering interviews
• Conjoint Analysis
• Brand Narratology
!
• Rate and rank brand associations
• Assess preferences
• Price premium and elasticity
Research Methods
• Researchers „touch“ the brand at all
points*
• In-store and online: orientation and
experience
• Visual analysis of touchpoints
• Semiotic meaning analysis
• Unboxing experiences
!
• Rate quality of the experience
• Rate touchpoint consistency
• Rate touchpoint uniqueness
• Rate touchpoint-brand fit
on Likert scales
Develop measures for long-term brand monitoring
and adjustment.
Brand
Touchpoints
Brand
Thoughts
Brand
Cultures

Cass Business School / Cass Consulting
City University London
m.luedicke@city.ac.uk
+44 20 7040 8687
88
Dr. Marius Luedicke

The Startup guide to branding

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