brand building - when marketing communication won't suffice

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This presentation was held at the Finnish Marketing Association on the 18th of Sept 2012. The key point is that as companies build brands, they need to focus more on differentiating their business instead of their communication, which ultimately leads to commoditization and failure.

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SUOMEN MARKKINTOINILIITTO 18.9.2012

BUILDING A STRONG BRAND IN A WORLD WHERE MARKETING

COMMUNICATIONS WON’T SUFFICE

BY TOBIAS DAHLBERG

COPYRIGHT © 2012 WONDER GROUP WONDER MANIFESTO 2012 - PAG 12/50

WHY SHOULD THEY CHOOSE YOU INSTEAD OF YOUR COMPETITION?Brand ConsultingInsight & Opportunity identificationBrand StrategyStrategy implementation

InnovationProduct & Service innovationConcept design

BrandingBrand DesignBrand CommunicationsInternal branding & events

CLIENTS

AltiaFiskarsPwCSkannoCoca-ColaMandatum LifeAmer Sports...

WHAT IS A BRAND?

COPYRIGHT © 2012 WONDER GROUP

“A BRAND IS A GUT

FEELING

ABOUT A COMPANY,

PRODUCT OR SERVICE.”Marty Neumeier

COPYRIGHT © 2012 WONDER GROUP

A BRAND IS NOT JUST AN

IMAGE LAYER OR SOME

ADDED VALUE.

IT’S A PERSONS WHOLE PERCEPTION AND

EXPERIENCE.

WHY ARE BRANDS SO IMPORTANT?

W O N D E R H E L S I N K I

...THAT GUT FEELING IS

WHAT WILL MAKE OR

BREAK YOUR BUSINESS!

IT’S THE MOST IMPORTANT BUSINESS METRIC

WONDER INNOVATION

“KODAK LOST ITS MOMENT”

R . I . P.

1 8 8 0 - 2 0 1 1

COMPANIES MUST LEARN TO ADAPT TO A

CONSTANTLY CHANGING WORLD

Source: BrandZ Top 100 / 2012

TOTAL VALUE OF 300 BILLION IN TEN YEARS!

IT ALL BOILS DOWN TO COMPETITION

WHY SHOULD THEY CHOOSE YOU INSTEAD OF YOUR COMPETITION?

COMPETITION IS NOT A NEW THING

ONLY THE MEANS OF COMPETITION KEEP CHANGING

TODAY, THE BARRIER TO COMPETITION IS THE HEAD OF YOUR CUSTOMER.

BRANDS ARE ABOUT DIFFERENTIATION.

HOW DO BRANDS WORK?

WONDER HELSINKI

WHAT IS THE PRICE DIFFERENCE?

WONDER HELSINKI

ILLY IS 14 TIMES

MORE EXPENSIVE (= VALUABLE)

...ON THE SAME SUPERMARKET SHELF

WONDER HELSINKI

BRANDS STAND FOR SOMETHING

THIS SOMETHING IS SOMETHING OF VALUE TO SOMEONE

WHICH COUNTRY DO THEY

COME FROM?

It tries to recognize and label everything it encounters.

THE BRAIN IS A

SELF-ORGANIZING MECHANISM.

T H E W O N D E R I N N O VAT I O N W O R K S H O P

OUR BRAINS ARE HARD-WIRED TO RECOGNIZE

PATTERNS AND TO MAKE SHORT-CUTS.

If they weren’t, we probably couldn’t get past tying our shoe laces each morning.

A BRAND IS A MENTAL FILE.

PERCEPTION IS REALITY

ARE VOLVO CARS THE SAFEST? HOW DO WE REALLY KNOW THAT?

OUR BRAINS JUDGE THINGS WITHOUT SEEING THE WHOLE PICTURE

What is Porsche?SPORT OR SUV?

BRANDS NEED FOCUS

MARKETING

IS A BATTLE OF PERCEPTION

IT’S NOT A BATTLE OF PRODUCTS, NOR FEATURES

...UNFORTUNATELY, THIS IS

WHERE WE ARE FAILING.

BRANDS ARE ABOUT PROMISE AND DELIVERY

WHERE HAS BRAND BUILDING GONE WRONG?

WONDER INNOVATION

DIFFERENTIATION - M. Porter

“differentiation is a strategy whereby the the firm

seeks to be different

in its industry along some dimensions that customers

value”

THIS STRATEGY IS NOT SUSTAINABLE,

(FOOD MADE BY MOTHERS SHOULD NOT BE INDUSTRIALLY PROCESSED)

NOR DOES IT CONTAIN A COMPETITIVE BARRIER

(DON’T THE COMPETITORS EMPLOY MOTHERS TOO?)

WONDER INNOVATION

BRANDS ARE

NOT BUILT THROUGH

COMMUNICATIONS

(ANYMORE)

SO, HOW ARE THEY BUILT THEN?

DON’T JUST SAY YOU ARE DIFFERENT.

BE DIFFERENT!

DIFFERENTIATE YOUR BUSINESS,

NOT JUST YOUR COMMUNICATION!

WONDER BRAND I WONDER DESIGN I WONDER CREATIVE I WONDER PRODUCTION

0

20

40

60

80

VOLVO AUDI

DIFFERENTATION

Safety Sportiness DurabilityBACK IN THE DAY

WONDER BRAND I WONDER DESIGN I WONDER CREATIVE I WONDER PRODUCTION

0

20

40

60

80

VOLVO AUDI

DIFFERENTIATION

Safety Sportiness Durability

TODAY ?

WONDER INNOVATION

DESIGN IS THE NEW ADVERTISING.

INNOVATION IS THE NEW ADVERTISING.

WONDER HELSINKI

BRANDS ARE ULTIMATELY ABOUT

VALUE.MOVE YOUR FOCUS FROM COMMUNICATION TO INNOVATION

INNOVATE NEW VALUE

BEYOND THE PRODUCT

TOMS GIVES A PAIR OF SHOES TO CHARITY FOR EVERY PAIR BOUGHT.

VALUE IS NOT THE SAME AS FUNCTIONALITY

Some people pay 500 euros for swimsuits that aren’t even made for swimming.

MISSONI

WONDER HELSINKI

THE VALUE IS NOT IN THE PRODUCT ITSELF

A DIAMOND IS WORTHLESS IF NOBODY VALUES IT

WONDER INNOVATION

WHAT YOU MAKE IS NOT WHAT YOUR

CUSTOMER BUYS.

PEOPLE DON’T BUY A DRILL. THEY BUY A HOLE.

PREPARINGDRINKING

SERVING,REAL.LIFE

SERVING,ONLINE

MANUFACTURING

SELLINGBRANDING+PACKAGING

LOGISTICS

FARMING

VALUEECOSYSTEM

SEARCH BROADLY FOR NEW VALUE

COPYRIGHT WONDER HELSINKI 2012

The Value Menu***

Functional valueWhat it does

e.g. energizing me

Emotional valueHow it makes you feel

e.g. Nostalgia

Symbolic valueWhat it says about you

e.g. “I am creative”

Social valueThe greater benefit

e.g. Bringing people closer

***

CREATE A

UNIQUE VALUE

MIX.

WONDER INNOVATION

“The only source of profit, the only reason to invest in companies

in the future is their ability to innovate and their ability to

differentiate” Jeffery Immelt, GE

COMPETITIVE ADVANTAGE =

CORPORATE CULTURE.

WONDER HELSINKI

THE FOUR MOST IMPORTANT

THINGS TO REMEMBER

WHAT ALL GREAT BRANDS HAVE IN COMMON

1DIFFERENCE

WONDER HELSINKI

Exercise: THE BRAND BENEFITS MAP

VALUABLE

DIFFERENT

THIS STUFF MAKES YOU UNIQUE!THIS STUFF IS IMPORTANT

THIS STUFF WILL DESTROY YOU THIS STUFF DILUTES YOUR BRAND

WONDER HELSINKI

Exercise: THE ONLINESS STATEMENT

OUR BRAND IS THE ONLY ___________THAT _____________category benefit

Something different than the norm.

2RELEVANCE

Something just for you.

3 DESIRE

The love factor. Not always something you need.

4 FAME

You cannot have fans if you’re not famous.

HOW TO PLAN FOR BRAND SUCCESS

brand strategy made simple

BRAND STRATEGY CANVAS TM

W O N D E R H E L S I N K I

HOW WE SEE IT

HOW THEY SEE IT

THERE ARE TWO SIDES TO A BRAND

W O N D E R H E L S I N K I

COMPANY CUSTOMER

W O N D E R H E L S I N K I

COMPANY CUSTOMERMARKET

BRAND STRATEGY CANVAS™

COMPANY MARKET CUSTOMERS

BRAND IDEA

POSITION

IDENTITY

OPPORTUNITY

KEY ACTIVITIES

PROMISE

KEY RESOURCES

PRODUCTS & SERVICES

ENVIRONMENTS & CHANNELS

PEOPLE & BEHAVIOUR

CUSTOMER PROFILE CUSTOMER MOTIVATORS

CLIENT PROJECT DATE

COMMUNICATIONS

OPPORTUNITYOPPORTUNITY

THIS IS YOUR ASPIRATION

THIS IS YOUR REALITY

THIS IS WHEREYOU MAKEIT HAPPEN

COMPANY MARKET CUSTOMER

THIS IS THE OPPORTUNITY

BRAND STRATEGY CANVAS™

COMPANY MARKET CUSTOMERS

BRAND IDEA

© 2009-2012 WONDER GROUP OY / WONDERHELSINKI.COM

POSITION

IDENTITY

OPPORTUNITY

KEY ACTIVITIES

PROMISE

KEY RESOURCES

PRODUCTS & SERVICES

ENVIRONMENTS & CHANNELS

PEOPLE & BEHAVIOUR

CUSTOMER PROFILE CUSTOMER MOTIVATORS

CLIENT PROJECT DATE

COMMUNICATIONS

OPPORTUNITYOPPORTUNITY

BRAND STRATEGY CANVAS™

COMPANY MARKET CUSTOMERS

BRAND IDEA

© 2009-2012 WONDER GROUP OY / WONDERHELSINKI.COM

POSITION

IDENTITY

OPPORTUNITY

KEY ACTIVITIES

PROMISE

KEY RESOURCES

PRODUCTS & SERVICES

ENVIRONMENTS & CHANNELS

PEOPLE & BEHAVIOUR

CUSTOMER PROFILE CUSTOMER MOTIVATORS

CLIENT PROJECT DATE

COMMUNICATIONS

OPPORTUNITYOPPORTUNITY

WHAT IS YOUR DIFFERENTIATING

IDEA?

WHAT ARE YOU REALLY GOOD AT?

WHERE IS THE UNCHARTERED SPACE?

WHAT NEED IS CURRENTLY BEING UNMET?

HOW SHOULD CUSTOMERS

PERCEIVE YOUR BRAND IN RELATION TO COMPETITION?

WHAT ARE YOU LIKE?

PERSONALITYVALUES ETC.

WHAT RESOURCES WILL YOU NEED?

WHAT ACTIVITIESSHOULD YOU FOCUS

ON?

WHAT VALUEAND BENEFITS DO YOU PROMISE?

WHO ARE YOURMOST IMPORTANT

CUSTOMER SEGMENTS?

WHY WOULDCUSTOMERS BUY

FROM YOU?

WHICH THINGS ARE MOST IMPORTANT?

WHAT SHOULD YOUR PRODUCTS AND

SERVICES BE LIKE?

WHERE SHOULD YOU SELL AND MARKET YOUR OFFERING?

HOW WILL THEY LEARN ABOUT YOU?

HOW SHOULD YOUR PEOPLE BEHAVE?

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