brand genius the yin and yang of creating extraordinary brands peter fisk sep 08

The yin and yangThe yin and yangof creatingof creating

extraordinaryextraordinaryextraordinaryextraordinarybrandsbrands

BrandBrandGeniusGeniusBrandGenius

The opportunity to The opportunity to growgrow

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Markets are incredibly complex and competitive

• Competitive intensity has tripled in most markets• Typical segmentation models now have 400 clusters• Product lifecyles have reduced by 70% over last decadeProduct lifecyles have reduced by 70% over last decade

Customers are much more powerful than ever

• Consumers now receive 1500 messages per day• 54% of consumers have registered for “do not call”• Purchase decisions are typically made in 2.6 secondsy y

Shareholders demand higher, faster returns

• Intangible assets make up 70% of Fortune 500 value• 60% of brand investment impacts future years• Investment timeframes fallen to 9 months

The challenge to The challenge to innovateinnovate

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The power of The power of customerscustomers

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The unlimited The unlimited opportunitiesopportunities

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The expectation that you can do The expectation that you can do betterbetter

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The need to do The need to do moremore

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The speed of The speed of changechange

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The need think The need think differentdifferent

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E h iE h i hflhflas

hflo

was

hflo

was

hflo

was

hflo

wEnhancing Enhancing cashflowscashflowsFor example byFor example by•• Sustainable price premiumsSustainable price premiums•• Distribution efficiencyDistribution efficiency

C lliC lliCa

Ca

Ca

Ca

Accelerating Accelerating cashflowscashflowsFor example by:For example by:

•• Cross sellingCross selling

For example by:For example by:•• Faster market adoptionFaster market adoption•• Partnership marketingPartnership marketing•• New payment methodsNew payment methods

Reducing uncertaintyReducing uncertaintyFor example byFor example by•• Strong customer loyaltyStrong customer loyalty•• Strong customer loyaltyStrong customer loyalty•• Long NPD pipelineLong NPD pipeline•• Brand extensionsBrand extensions

FutureFuture

The drivers of The drivers of valuevalue

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The scope of The scope of opportunityopportunity

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Thinking intelligently and creativelyThinking intelligently and creatively

• Where are the most profitable opportunities?• How to unlock the real value of your brands?• Which products and customers to focus on?• Which products and customers to focus on?

Balancing market and business impact

• How to develop compelling and profitable propositions?• What is the optimal channel and communication mix?• How to price for profitability and volume?

Delivering short and long-term performance

• Where to allocate budget and resources for best return?• What is the economic value of brands and innovation?• How to report performance to shareholders?

The yin and the The yin and the yangyang

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The yin and the The yin and the yangyang

BrandGenius

AppleApple: The yin and the : The yin and the yangyang

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FacebookFacebook: : The yin and the The yin and the yangyang

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Tata: Tata: The yin and the The yin and the yangyang

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VirginVirgin: The yin and the : The yin and the yangyang

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Concept Concept ZoneZoneZoneZone

Impact Impact ZoneZone

Concept Concept ZoneZone

Creative Creative ZoneZone

Future Future ZoneZone

The 4 zones The 4 zones of value innovationof value innovation

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Where are the Where are the best opportunities?best opportunities?

What are the What are the creative possibilities?creative possibilities?

Which are theWhich are thebest innovations?best innovations?

How much valueHow much valuewould it create?would it create?

Concept Concept ZoneZoneZoneZone

Impact Impact ZoneZone

Concept Concept ZoneZone

Creative Creative ZoneZone

Future Future ZoneZone

Identify markets andIdentify markets and Focus creativityFocus creativity More rigorouslyMore rigorously Value impactValue impactIdentify markets and Identify markets and and products of mostand products of most

potential valuepotential value

Focus creativity Focus creativity where it can havewhere it can have

most impactmost impact

More rigorouslyMore rigorouslyevaluate and connectevaluate and connect

the best ideas the best ideas

Value impactValue impactis more measurableis more measurable

and greaterand greater

The 4 zones The 4 zones of value innovationof value innovation

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FutureFutureFuture Future ZoneZone

Future ZoneFuture Zone11

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Future ZoneFuture Zone: Where are the future opportunities?: Where are the future opportunities?11

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Future Zone: Embedded1

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Future Zone: Where are the adjacent markets?1

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Future Zone: Networked1

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Hot Spots Cool Places White Spaces Black HolesHot Spots Cool Places White Spaces Black HolesHot Spotswhere the newcompetition is

Cool Placeswhere latest

trends emerge

White Spaceswhere nobodyhas ventured

Black Holeswhere oldbrands die

Hot Spotswhere the newcompetition is

Cool Placeswhere latest

trends emerge

White Spaceswhere nobodyhas ventured

Black Holeswhere oldbrands die

ROE/Ke

Identifying the most Identifying the most y gy gprofitable opportunitiesprofitable opportunities

•• high growth marketshigh growth markets•• optimal competitive positionoptimal competitive position

•• profitable customer segmentsprofitable customer segmentsgg

ROE/ROEavAnalysis could be done for markets, segments, key accounts,brands, categories. products, or channels

Future Zone: Which markets have most potential?1

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Future Zone: Responsible1

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CreativeFuture Creative Zone

Future Zone

Creative Zone2

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Customerbroader

i

Businessnarrow

Business

view

narrowview

narrowview

Business CustomerBusiness Customer

Creative Zone: Gaining new perspectives2

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Creative Zone: Reframing2

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InnovationInnovation

Creative Zone: Creatively stretching the possibilities2

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Creative Zone: Solutioning2

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O peningup

ConceptInnovation

O peningup

M arketInnovation

O peningup

ConceptInnovation

O peningup

M arketInnovation

Generate ideasGenerate ideasGenerate ideasGenerate ideasGenerate ideasGenerate ideasGenerate ideasGenerate ideas

Generate ideasGenerate ideas

Openingup

ConceptInnovation

Generate ideasGenerate ideas

Openingup

ConceptInnovation

Generate ideasGenerate ideas

Openingup

ConceptInnovation

Generate ideasGenerate ideas

Openingup

ConceptInnovation

Openingup

ConceptI ti

Openingup

ProductI ti

Openingup

ConceptI ti

Openingup

ProductI ti

Generate ideasGenerate ideas

p InnovationGenerate ideasGenerate ideas

p InnovationGenerate ideasGenerate ideas

p InnovationGenerate ideasGenerate ideas

p Innovation

Creative Zone: What are all the possibilities?2

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Creative ZoneCreative Zone: Anytime: Anytime22

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Concept Zone

ConceptCreativeFuture Concept Zone

Creative Zone

Future Zone

Concept Zone3

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Concept Zone: Which are the best ideas?3

BrandGenius

DesperateDesperateHousewivesHousewives

iPodiPodPhonePhone

PhotoPhoto

VideoVideo HousewivesHousewives

MotorolaMotorola

PodcastingPodcasting 60G60G ShuffleShuffle

NanoNano(RED)(RED)

IconicIconicdesigndesign

iTunesiTunesMusicMusicStoreStore

LegalisingLegalisingFilesharingFilesharing

WhiteWhite ImitationImitation AdAd

MiniMini

iPodiPodBrandBrand

U2U2VertigoVertigo

ExclusiveExclusiveReleasesReleases

Success

cablescables And buzzAnd buzz GraphicsGraphics

SpecialEdition

Story

Apple Steve JobsiMac

Concept Zone: Fusing the best ideas together3

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Concept Zone: Experiential3

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Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions

Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions

Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions

Value to customer• Perceived by individuals• Relative to alternatives• Relative to costColour

ImportancePerception

CompetitivenessCost

Value ofValue ofValue ofValue of

Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions

Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions

Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions

Value of customer• Price less costs of sale• Plus future purchases• Plus efficiency

Memory

Price

SizeValue ofbenefits

to customer

Perceivedworth

relativeto others

Pricedto offer

value for

Value ofbenefits

to customer

Perceivedworth

relativePricedto offer

Value ofbenefits

to customer

Perceivedworth

relativeto others

Pricedto offer

value for

Value ofbenefits

Perceivedvalue

Price

Plus efficiencySupport

Availability

etc.to others value for

moneyReturn

to investors

money”Return

to investors

to others value formoney

Returnto investorsReturn

Articulating brands throughlli iticompelling propositions

• leveraging brand power for customers• maximising value to each segment

• optimising price elasticity

Concept Zone: Shaping new value propositions3

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Concept Zone: Enablement3

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LocationsLocations

Core Core businessbusiness

modelmodelProductsProducts FormatsFormats

Useful Useful extensionextension

strategystrategy

E di b d h f hE di b d h f h

strategystrategy

Total Total BrandBrandExtending brands to reach further,Extending brands to reach further,

faster and more profitablyfaster and more profitably•• leveraging power in adjacent marketsleveraging power in adjacent markets

•• licensing and franchisinglicensing and franchisingi i i fit ti i i fit t

businessbusinessformatformat

and relatedand relatedservicesservices

Concept Zone: Evaluating how best to deliver them3

•• maximising new profit streamsmaximising new profit streams

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Concept Zone: Ingredient3

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Concept Concept ZoneZone

ImpactImpactConceptConceptCreativeCreativeFutureFuture Impact Impact ZoneZone

Concept Concept ZoneZone

Creative Creative ZoneZone

Future Future ZoneZone

Impact Zone44

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Tell others

Pay more

Tell others

Pay morey

Cost less

Stay longer

y

Cost less

Stay longer

Cost less

Buy more

Cost less

Buy more

1 2 3 4 5 6 71 2 3 4 5 6 71 2 3 4 5 6 71 2 3 4 5 6 7

Average length of customerrelationship (in years)

1 2 3 4 5 6 71 2 3 4 5 6 71 2 3 4 5 6 71 2 3 4 5 6 7

Average length of customerrelationship (in years)

Impact Zone: turning customers into profits4

relationship (in years)relationship (in years)

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Impact Zone: net promoters4

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££

Incremental Incremental valuevalue

OriginalValue

FinalValue

Increased Customers

NewChannels

Additional investment SynergiesNew

Markets

Impact Zone: What will be the impact?4

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Impact Zone: Impact Zone: doing moredoing more44

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Market researchMarket researchLinked into ongoing marketLinked into ongoing marketresearch tracking programresearch tracking program

Financial analysisFinancial analysisLinked into ongoing financialLinked into ongoing financialsystems and autosystems and auto--analysisanalysis

Business PerformanceBusiness PerformanceKey reports produced forKey reports produced for

CEO and directors, drivingCEO and directors, drivingpriorities and investmentpriorities and investment

Personal PerformancePersonal PerformanceLinked to manager and Linked to manager and team’s objectives, KPIs,team’s objectives, KPIs,

reviews and compensationreviews and compensation

Investor RelationsInvestor RelationsMarketing becomes keyMarketing becomes keypart of analyst briefingspart of analyst briefings

d l td l t A ti l ti th l l fA ti l ti th l l fand annual reportand annual report Articulating the real value of Articulating the real value of brands and innovationbrands and innovation•• to the wider businessto the wider business

•• to finance and the boardroomto finance and the boardroomt i t d l tt i t d l t

Impact Zone: What will be the impact?44

•• to investors and analyststo investors and analysts

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Impact Zone: Impact Zone: doing gooddoing good44

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Where are the best opportunities?

What are the creative possibilities?

Which are thebest innovations?

How much valuewould it create?

Concept ZoneZone

Impact Zone

Concept Zone

Creative Zone

Future Zone

Identify markets and Focus creativity More rigorously Value impactIdentify markets and and products of most

potential value

Focus creativity where it can have

most impact

More rigorouslyevaluate and connect

the best ideas

Value impactis more measurable

and greater

Unlocking the real value of brands

BrandGenius

Fast foodFast food

ImmersionImmersion

WellbeingWellbeing

ResponsibleResponsible

TransformationTransformation

AuthenticAuthentic

About youAbout you

We help you innovate We help you innovate driven by customersdriven by customers

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GlobalGlobal

BacklashBacklash

Sales declineSales decline

Beyond CokeBeyond Coke

Local relevanceLocal relevance

New DNANew DNA

InnovationInnovation

We help you innovate We help you innovate where it matters mostwhere it matters most

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Business IPOBusiness IPO

Multiple brandsMultiple brands

Growth marketsGrowth markets

Brand valuationsBrand valuations

Growth optionsGrowth options

Value impactValue impact

We help you do We help you do what nobody else can dowhat nobody else can do

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Share declineShare decline

MarketplaceMarketplace

Growth optionsGrowth options

EvaluationEvaluation

Market strategyMarket strategy

Focus marketsFocus markets

GrowthGrowth

We help you combine rigour and magic

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Start upStart up

Niche audienceNiche audience

Strong brandStrong brand

Growth optionsGrowth options

New marketsNew markets

Faster growthFaster growth

We help you We help you accelerate business growthaccelerate business growth

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The yin and the yang

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The crazy onesThe crazy onesBrandGenius

e c a y o ese c a y o es

Here’s to the crazy ones.

The misfits The rebelsThe misfits. The rebels. The troublemakers.The round pegs in the square holes.The ones who see things differently.

Th i t Th i i Th h lThey're not fond of rules.And they have no respect for the status quo.

You can praise them disagree with them

They invent. They imagine. They heal.They explore. They create. They inspire.They push the human race forward.

M b th h t bYou can praise them, disagree with them, quote them, disbelieve them, glorify or vilify them.

About the only thing you can't do is

Maybe they have to be crazy. How else can you stare at an empty canvas and see a work of art?

O it i il d h th t' b itt ?About the only thing you can t do is ignore them. Because they change things.

Or sit in silence and hear a song that's never been written?Or gaze at a red planet and see a laboratory on wheels?

While some see them as the crazy ones,e see geni swe see genius.

Because the people who are crazy enough to thinkthey can change the world, are the ones who doare the ones who do.

The crazy onesThe crazy onesBrandGenius

e c a y o ese c a y o es

© © The Genius Works Ltd 2008peterfisk@peterfisk com

www.BrandGenius.com

peterfisk@peterfisk.com

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