The document discusses strategies for experiential branding, including building customer experiences through engaging all five senses, getting customers involved in creating experiences, and engaging employees to deliver the brand promise. It also covers measuring the impact of experiential branding through increased brand equity, loyalty, and marketing ROI. Case studies of successful experiential branding by brands like Red Bull, Lego, and Singapore Airlines are presented.

1. Strategic Experiential Branding David Vinjamuri July 2008

2. What We Will Cover Building customer experience Brand experience building exercise The Branded Lifestyle Building experiences with the five senses Engaging customers - customer-created experiences Design a customer-run community Technology in Experiential Marketing Online community exercise Engaging employees in delivering the brand promise Design an employee-branded program for your brand Six brand lessons from Accidental Brands Day I Day II

3. What is Experiential Branding? Engaging experiences created by marketers for your brand Ralph Lauren Flagship Store, NYC The World of Coke Massage Chairs in Brookstone Extending your brand into the customers’ life Martha Stewart Houses Branny Academy Engaging all the senses – choreograph the brand experience Getting customers to build experiences Brand building through employees

4. Building Customer Experiences

5. Questions How do I build branded experiences for my customers? How does brand engagement translate to increased brand loyalty? How do I ensure these experiences are consistent with my brand strategy? How do I measure the marketing ROI? What are examples if successful brands using brand experiences?

6. Goal of Experiential Branding?  INCREASE BRAND EQUITY

7. What is Brand Equity?

8. Questions Reduced Marketing Costs Trade Leverage Attracting New Customers Create Awareness Reassurance Time to Respond to Competitive Threats Anchor to Which Other Associations can be Attached Familiarity - Liking Signal of Substance / Commitment Brand to be Considered Reason to Buy Differentiation / Position Price Channel Member Interest Extensions Help Process / Retrieve Information Reason-to-Buy Create Positive Attitude / Feelings Extensions Competitive Advantage Brand Loyalty Brand Awareness Perceived Quality Brand Associations Other Propriety Brand Assets BRAND EQUITY Provides Value to Customer by Enhancing Customer’s: Interpretation / Processing of Information Confidence in Purchase Decision Use Satisfaction Provides Value to Firm by Enhancing: Efficiency and Effectiveness of Marketing Programs Brand Loyalty Prices / Margins Brand Extensions Trade Leverage Competitive Advantage Credit: David A. Aaker, Managing Brand Equity

9. Brand Equity: McDonalds

10. Brand Attributes PRODUCT ATTRIBUTES FUNCTIONAL BENEFITS EMOTIONAL BENEFITS PERSONALITY ICONS

11. 1. Product Attributes Quick Serve Consistent Eat-in / Take-out Counter / Drive-thru Popular, basic items ( burgers, fries ) Inexpensive Lots of locations

12. 2. Functional Benefits Save time Satisfy hunger and thirst Whole family can enjoy Get toys in addition to food Don’t spend a lot of money

13. 3. Emotional Benefits No hassles No surprises Safe haven Treat / break from busy day Kids have fun “ Hero” with my kids

14. 4. Personality / Values Happy Kid-Friendly Family-oriented Simple, Basic Trustworthy Community oriented American

15. 5. Icons Golden arches Red and Yellow colors Ronald McDonald Playgrounds Happy Meals Big Mac

16. Case Study: Red Bull

17. “ The thin color is unappetizing” “ It tastes sticky in my mouth” “ Totally disgusting” What Consumers Said

18. “ Totally unappetizing … sticky .. disgusting … No other new product has ever failed this convincingly” - NPD Market Research report on first use test of Red Bull, 1984 Market Research Results

19. Dietrich Mateschitz founds company 1984 Bad research results Huge disputes with Austrian FDA Ad Agency cannot come up with a single good campaign idea  A GOOD TIME TO GIVE UP?? Getting the Bull Out

20. Launches in Austria in 1987 8x the price of Coke Positioned as a ‘cool’ stimulant (Viagra in a bottle) Used regulatory trouble to create a big myth Launch

21. “ It took five years to gain permission for export into Germany, Red Bull’s second market… Initially, Munich became a flourishing black market and speculation started why the drink was illegal in Germany: Was it speed-in-a-can, a legal drug? Was its Taurine sourced from Bull’s testicles, making Red Bull an over-the-counter Viagra?” The Red Bull Myth

22. German moms united after Red Bull launched there in 1992 to get it banned again … … making it wildly popular with teenagers Red Bull sold out everywhere in first three months on market … … Which made it even more popular Building the Myth

23. “ Here is a non-alcoholic product about as caffeinated as a cup of coffee – that’s managed to acquire a reputation as a surefire wild-times elixir … a party drink, a stimulant, an aphrodisiac, a raver’s ‘smart drink’ gone mainstream. The strategy is rumor by omission and, only when absolutely necessary, denial … the public has filled in the blanks with speculation and innuendo.” The Press and the Myth

24. The taste becomes a selling point. It tastes so strong – it must be working. Red Bull is always sold as a functional drink – it makes you work better. “ The Taste Doesn’t Matter” - Mateschitz What About That Taste?

25. Lots of sampling at the ‘right places’ German Marketing

26. “ Flugtag” – German Flying Day German Marketing

27. 60 aspiring DJ’s invited to Music Academy German Marketing

28. Bartenders created the ‘Stoli Bully’ German Marketing =

29. Every employee has to be an enthusiast Every vendor is a believer Don’t waste time on non-believers Believe that they are the underdog The Red Bull Culture

30. The Red Bull Rules Out of Reach Logos for All Merchandising Don’t Pay Them Pay for Celebs Celebrities High Quality Limited Widespread Sampling Limit Availability Broad Availability Distribution Want ‘Right’ People Want Everyone Targeting Support Role Only Launches Brand Advertising Functional Aspirational Positioning Red Bull Rules Marketing Rules Issue

31. Focus on Building Brand Enthusiasts as Partners: Bar staff Cab drivers Launching in New York

32. Used exclusivity as a weapon On-premise sales followed sampling Limited Retail distribution for years Sampling in situ is the key tactic Always provide a full, sealed can for sampling Launching in New York

33. Launched Red Bull in Austria in 1987 Expanded to Germany in 1992 Sold in 100 Companies in 2004 Over 1 Billion Cans Consumed Annually 21-Year Report Card

34. 5 Lessons from Red Bull Size is a by-product of success, not success itself Build enthusiasts, not just brand users Unmet demand is not always bad Everyone, including suppliers, must personify the Brand Overnight success takes time

35. Consistency Evaluate your brand Expert Brand Insider Brand Lifestyle Brand Challenges Brand  What kind of experience will build your brand?

36. Measuring the Benefits of Branded Experiences Top of mind unaided brand awareness NPV (Net Present Value) IRR (Internal Rule of Return) The Brand Scorecard – can include share, awareness, etc. The One Number You Need to Grow (handout) Basic ROI

37. Case Study: American Express http://www.askmrcreditcard.com/americanexpressnyccard.html http://www.pollingcompany.com/cms/files/2005%20INNYC%20Survey%20Press%20Release.pdf

38. Case Study: The Range Rover Experience Cost of Experience Customer Fee Increase in Purchase Interest Increase in Customer Lifetime Value

39. Case Study: The Magic Kingdom Created by a movie studio Very early Brand Experience (1957) Idea from successful studio tour Idea was to immerse consumers in the Disney Brand – let the movies come alive

40. Case Study: Sony Style How do I showcase innovation? How do I get consumers to see my whole line? How can I make this an experience?

41. Brand Manager Tips Think small first – don’t set yourself up for failure Consider psychographic success measures – attitudes matter! Evaluate partners carefully Monitor costs closely Have a disaster plan

42. Team up in groups of 4 Pick an Asian / Global Brand Okay to use a brand you work on Design a brand experience Present Plan –Rationale, Plan, Resources Needed, Measurement 45 minutes Exercise: Brand Experience

43. The Branded Lifestyle

44. How can we increase consumer involvement with our brands? How can I extend brand awareness past traditional usage boundaries? Create a branded lifestyle  Works for Lifestyle brands Challenge

45. How can you bring your brand to other parts of your customer’s life? Where will your brandy equity be strongest? When can this elevate the brand? The Branded Lifestyle

46. Martha Stewart American icon Domestic expert Seeks perfection Memorable experiences Martha Stewart Homes Design for everyday people Sense of style in the suburbs Great brand awareness Martha Stewart Homes

47. Bulgari Jewelry Fashionable Elegant Established Bulgari Hotels and Resorts Luxurious Elegant Design-driven Exclusive Bulgari Hotels and Resorts

48. Ikea Better living by saving money Sensible design = Scandinavian design Goes with starter homes Boklok House Good quality, cheaper Design is Ikea Elevates branding Ikea Houses

49. Disney Kid-focused Family-friendly Traditional values Entertainment Celebration, FL Traditional values Family-oriented Walk, not drive 9000 residents Celebration, Florida

50. Building Experiences with Five Senses

51. Much of today’s branding relies overwhelmingly on SIGHT Opportunities: Sound - Is there a distinctive sound associated with your brand? ( Intel) Smell – Do customers link a smell to your brand? (Rolls Royce) Taste – Does your brand evoke a taste? (Colgate, Listerine) Touch – Can you identify the brand with your fingers? (Coca-Cola) Sensory Branding

52. Sensory Utilization Credit: Millward Brown 63.8 Coca-Cola 13 65.0 Absolut Vodka 12 67.5 Nike 11 68.8 Harley-Davidson 10 70.0 Nokia 9 71.3 Bang & Olufsen 8 72.5 Louis Vuitton 7 73.8 Tiffany 6 75.0 Marlboro 5 78.8 Mercedes-Benz 4 87.6 Disney 3 91.3 Apple 2 96.3 Singapore Airlines 1 58.8 Prada 17 60.0 Starbucks 16 61.3 Pepsi 15 62.5 Gilette 14 55.0 Rolls-Royce 20 56.3 Guinness 19 57.5 Caterpillar 18 Sensory Leverage (in %) Brand Rank

53. Sensory Potential Credit: Millward Brown 35.0 Nescafe 13 33.8 Barbie 12 33.8 Philips 11 33.8 Microsoft 10 32.5 Kleenex 9 32.5 McDonald’s 8 31.3 Burger King 7 31.3 Sony 6 31.3 Adidas 5 28.8 KFC 4 26.3 Virgin 3 25.0 Motorola 2 23.8 Ikea 1 42.5 Wrigley 17 41.3 AOL 16 40.0 Kodak 15 36.3 Nintendo 14 46.3 Ford 20 45.0 IBM 19 43.8 Colgate 18 Sensory Leverage (in %) Brand Rank

54. 1973 – Singapore Girl Uniform Make-up Perfume 1990s – Hot Towel Sent (Stefan Floridian waters) 1990s – music in lounges Case Study : Singapore Airlines

55. Five-Dimensional Brand Model SMELL TOUCH SIGHT SOUND TASTE SINGAPORE AIRLINES

56. Five-Dimensional Brand Model SMELL TOUCH SIGHT SOUND TASTE COLGATE

57. Five-Dimensional Brand Model SMELL TOUCH SIGHT SOUND TASTE INTEL

58. The Sensory Brand Pyramid Stimulate: Create interest or anticipation with senses – the smell of warm bread, the sound of a can of Coke opening Enhance: Use sense to intensify the brand experience – the smell of a Rolls Royce Bond: Link a sensory input permanently to the brand – Singapore Airlines cabin scent and music Stimulate Enhance Bond

59. Digital Video Recorder Strong competition Strong loyalty Used Touch – feel of remote Sound – sound of thumbs-up and thumbs-down button Sight – Thumbs-up/down Case Study : TiVo

60. What is new car smell ? Every new Mercedes smells the same The smell is patented It lasts for 6 weeks on average Case Study : Mercedes Benz

61. Does your brand leverage the maximum number of senses for your industry? Sensory Audit 3 FMGG Financial Services E-Commerce Service Providers 4 2 5 Hospitality Entertainment Retail Telecommunication e-Commerce (Digital Service) 6

62. Customer Engagement in Brand Experience

63. 1990s Subculture of Barbie-loving adults starts running Barbie Fashion Shows Artists and designers join this movement Subversive designs include “Trailer Trash Barbie” and “Big Dyke Barbie” Mattel sues fans Mattel loses Barbie loses cache, Mattel goes into slump and never recovers Case Study : Barbie

64. Early Target: Internet junkies Horror finatics Film buffs Message: Did the Blair Witch exist? Did 3 film students die in the woods trying to find her? Was “Blair Witch” a snuff film? Result: Consumers took over marketing Gossip spread message Case Study : The Blair Witch Project

65. Case Study : The Blair Witch Project Comic book, CD, and book released Limited distribution creating long lines and great PR Introduced at Sundance during midnight screening The rumor spreads Breeding the Myth 90% of advertising budget spent during this phase Debuts at NYC’s Angelika Film Center Switching message from myth to movie Growing the Myth Wide-release in 2,000+ theaters Limited Release Seeding the Myth Mass Release Becoming the “Next Big Thing” Building Momentum Trailers shown on Ain’t It Cool, MTV and after Star Wars movie Team spreads misinformation and drives traffic to website The rumor of the missing students was planted Media jumps on bandwagon, appear on cover of Time magazine Mentioned on Ain’t It Cool News website Blair Witch website goes live They show 8 minutes of footage claiming that it was found in the woods Web site gets 650,000 hits a day Pre-screened at 40 colleges with students, but not with critics Pierson invites viewers to debate the rumor online Myrick and Sanchez appear on John Pierson’s Split Screen Show Film racks up $224 million at the box office Advertising starts in phases: print, radio, and then TV Artisan buys distribution rights for $1 million Second clip is shown on Split Screen Show Rumor starts Add more “evidence” to the website – created fake fan sites Curse of the Blair Witch “mockumentary” airs on SciFi Channe; LAUNCHING THE FILM ANTICIPATING THE FILM CREATING THE MYTH

66. H.O.G.s 400,000 members in 1,000 chapters Assisted, not controlled by Harley Organize rides and rallies Have a voice in the company Saved Harley in the 1980s during the Japanese Superbike invasion Case Study : Harley Owner’s Group

67. 2005 – Sprint contacts 1000 influential bloggers Offers them phones and free service for 6 months Gives them a forum to submit feedback Stays otherwise hands-off Case Study : Sprint Ambassador Program

68. Brand Loyalty Ladder Brand “Recruitment Process” to gain loyal and involved consumers. Adoption Trial Reconsideration Retrial Discovery Recommendation/ Raving Fan

69. Mindstorm is toy with computer controller Targeted at teen boys Has adult geek-programmer fan base Reaches out to 3 fans Gets them to help design the next generation of products Case Study : Lego Mindstorm

70. A Brand to Last Forever

71. Groups of 4 Pick an Asian / Global Brand (can be yours) Design a brand community Why will people participate? What makes it interesting? What makes it unique? Present Plan 45 minutes Exercise: Brand Community

72. Technology in Experimental Marketing

73. Changes in how consumers interact with brands on the internet Online – co-creation and co-marketing Online community Online customization What We Will Cover

74. Internet Penetration by Access Technology Source: eMarketer

75. Visitors to MySpace by Age Source: comScore Media Metrix, via eMarketer AGES MYSPACE VISITORS TOTAL INTERNET 12-17 11.9% 9.6% 18-24 18.1 11.3 25-34 16.7 14.5 35-54 40.6 38.5 55+ 11.0 18.0 Unique Visitors (000) 55,778 173,407

76. Consumers and Brands Online

77. Consumers are taking control

78. … but what does it actually mean?

79. Co-Creation is a business

80. Co-Creation has risks

81. Rules of the Road for Co-Creation Don’t risk it for brands with high negatives Don’t try to squelch bad PR Watch closely and respond quickly Give consumers a chance to be creative Mind the details

82. The Real Co-Creation

83. The Real Co-Creation

84. Online Communities

85. What is a community?

86. What does a community do? TRADE COOPERATE SOCIALIZE PROTECT What other functions?

87. Why Basic Economic Theory Kills Community Mobility of Labor These are the top 50 fastest-growing markets in the U.S., ranked in order of growth, according to the 2000 Census Source: http://www1.move.com/Finance/Census/Top50MSAs.asp?poe=realtor

88. Why Online Communities Exist SHARED INTEREST TRADE THINGS NEED FOR INFORMATION FIND A PARTNER

89. Why Do Some Communities Succeed and Others Fail?

90. Other Lessons For Communities Ability to coexist with neighbors Understanding and use of limited resources Cohesiveness

91. Other Lessons For Communities Meet mutual needs Provide security Coexist with external environment Cohesive organization Address problems of the commons

92. Types of Online Communities

93. The Clique Small Exclusive Anti-Establishment

94. The Network Large Move information quickly Loose Affiliation

95. The Cult Rituals Belief system Levels of Access Q: Do you belong to an online cult community?

96. The Nation Egalitarian Sovereign Driven by a cause

97. Exercise Divide up by computers - 1 instruction card per person Go to this URL: www.handcraft.ning.com Create an online profile (1 profile for each group) Note your: Area of expertise Information needs Desire(s) Try to get your information, needs and desires met No talking - all communication must be through the social network

98. Roles of an Online Community Talking Energizing Embracing Support Listening

99. Listening Community become online research Qualitative and quantitative Allows deep interaction Empowers consumers

100. Talking Active discussions around your product Initiation of “non-converts” Creating media for community Lessons Use Text Mining

101. Energizing Get members to stimulate word of mouth Seek member creativity Build excitement

102. Support Help customers get answers Allow customers to help each other

103. Embracing Bringing consumers in at the next level Co-design Joint-planning

104. Starting an Online Community

105. Key Steps: Community Building Agree of measures of progress Should be deeper than just members or pageviewers Make the space flexible Members need to be able to create topics of discussions Create standards of behavior Have a crisis plan in place Quick decisions on troublemakers Plan for hidden costs

106. Hidden Costs of a Community Advertising and “kick start” Ongoing content creation Community management Crisis Management

107. Tips for growing online communities Start provocative conversations Monitor and stay engaged Identify: Influentials Hot topics Trouble Makers Create program for brand evangelists Extra access Training Early information Create applications for existing social networks

108. A Case Study: Brooklyn Museum Situation: 2006 Brooklyn Museum needs to attract and retain more visitors User base is young and internet-savvy Museum is moving content online No budget for online initiatives Steps: Created cellphone tour of new exhibit Created a graffiti mural wall  Flickr site for graffiti wall Created online graffiti drawing projects Created a podcast Used MySpace collaborating with popular MySpace artist to get word out on exhibition Created “Community” on Brooklyn Museum website

109. Thoughts on Online Communities Community First, Marketing Second Don’t underestimate ongoing maintenance costs Be ready for detractors Stimulate the community Be flexible about where your community migrates

110. Online Customization

111. The Old Paradigm is WWW Comprehensive Brilliant Exhausting!!

112. New Paradigm - My Web

113. RSS Pulls Content To ME

114. Exercise: Create iGoogle, My Yahoo Page Divide into groups (1 group per computer) Go to www.my.yahoo.com or www.google.com/ig Set up a page that will: Track Merchant News Keep you up to date with marketing blogs Give you news Allow you to read other favorite sites or blogs Make sure you pull in at least 2 RSS feed sites

115. Widgets Customize My Desktop

116. I use IM for work …

117. The Brand Adoption Model Adoption Trial Reconsideration Retrial Discovery Recommendation/ Raving Fan

118. Engaging Employees in Delivering the Brand Promise

119. They know your brand best They are invested Their opinion can greatly damage you if negative Improving their opinion strengthens the brand They must understand the brand promise to deliver it Why Think About Employees?

120. They know your brand best They are invested Their opinion can greatly damage you if negative Improving their opinion strengthens the brand They must understand the brand promise to deliver it Why Think About Employees?

121. Early News Discounts Tell-a-friend bonuses Exclusive access The Employee as Brand Insider

122. New Tagline in 1998? – “The Best Cancer Care Anywhere” Promise failed Meaning of “care” Retained support staff The Janitor Incident Case Study : Memorial-Sloan Kettering

123. Train them in Brand Positioning Entrust them with positioning statement Use professionals to train Focus on the lesson – everything affects the brand Build branding skills among employees Training Employees

124. Focus on behavior, not attitude Describe specific examples Illustrate the negative impact on the brand Consider giving a PTO (paid time off) leave Ask for a new commitment Dealing with Negative Employees http://gothamist.com/2008/01/04/starbucks_baris.php http://www.cnn.com/2008/LIVING/wayoflife/03/27/heroes.andersen/index.html Vs.

125. Groups of 4 Design an employee marketing program Explain employee benefits and employee responsibility Explain costs and potential revenue/costs savings 45 minutes Exercise

126. Six Brand Lessons from Entrepreneurs

128. X X X

130. What is an Accidental Brand?

131. X Must be started by someone with no formal marketing training

132. 2. Must solve their own problem

133. 3. Brands 10+ years old

139. Six Lessons from Accidental Brands

140. Do Sweat the Small Stuff #1

141. Memory: 20 GB 20 GB Songs: ~ 4500 ~4500 iPod Second Generation July 2002 Creative NOMAD Jukebox Zen June 2002 http://docs.info.apple.com/article.html?artnum=61688-en http://www.mp3newswire.net/stories/2002/nomadzen.html

144. Pick a Fight #2

148. Be Your Own Customer #3

152. Am I being polite? Did I offer to carry her bags?

153. I’m not giving him my bags. Do I have to tip him?

154. Did I greet the customer with his name? Do we have his loyalty program number?

155. Did I do something wrong? Why isn’t she making eye contact?

158. http://www.columbia.com/tv_ads/tv_ads.aspx

159. Be Unnaturally Persistent #4

161. Time to $100 Million in Revenue 22 years 21 years 10 years 8 years 4 years

162. Build a Myth #5

163. Μύθος (míthos) - Mythos * From μυθολογέω "I tell tales," μυθολόγος "legend," μῦθος "story" and λέγω "I say" * Definition : a usually traditional story of ostensibly historical events that serves to unfold part of the world view of a people or explain a practice, belief, or natural phenomenon λόγος - Logos * From λέγω - "I say" * Definition : the divine reason implicit in the cosmos, ordering it and giving it form and meaning. Mythology – a story with a lesson

166. Be Faithful #6

167. David Vinjamuri [email_address] 212-543-3200