branding and positioning training kul nov 2013
TRANSCRIPT
Branding & Positioning
Tuesday, 7 november 2013
Agenda
-Branding in the FACTS vision-What is a brand?-How to build a strong brand?-How to build an efficient Brand architecture-What about brand loyalty?-How to create value for your brand-The future of brands: some critical questions and insights
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THoM ‘s 3 main service offerings
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Temporary Marketing Support
Marketing ConsultancyMarketing Talent
Development
To bridge Capacity & Competence
gaps
To tackle strategic marketing challenges
To develop, counsel & train
marketers on the job
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What are your expectations of today?
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Brands in the FACTS vision
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Credibility van marketeer onder vriespunt onderzoek readers digest credibility advertising industry
Crisis
Marketing overload
Keuzestress
Short term tactics
.....
Marketing tactics don’t build long term brand equity
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Public relations
Congress/trainings
Sponsoring
Events and trade fairs
Product placement
Gamifaction
Sampling
Others
Image campaigns
Guerilla marketing
Instore marketing
Brand activation
Direct Marketing
-30%
-19%
-19%
-15%
-8%
-5%
-4%
-4%
-1%
3%
6%
15%
19%
0.0159090909090909
-0.370454545454548
-0.127272727272727
-0.120454545454546
-0.0340909090909091
-0.279816513761471
-0.0636363636363637
0.0272727272727276
0.184090909090909
0.179545454545457
Expected budget evolutions for tactics
2012 Net difference (%increase-%decrease) 2013 Net difference (%increase-%decrease)
N=207
Direct Marketing
Brand Activation
Image campaigns
Sponsoring
Congress / training
#YMS2013
THoM believes marketing should become more FACTS
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• Strategic consistency• Brand consistency• Simplicity & relevance• Customer centricity• Build knowledge• Focused team• continuity
• Detect trends & act• Early warning systems & processes• Agile & up to date organization• Built around customer
engagement• Willingness to change• Flexibility & Speed
• Innovative company culture• Diversity of profiles• Idea generation• Idea valuation• Porosity & open-mindedness
• KPI’s & dashboards• Scenario analysis & ROMI• Connect with marketing intelligence• Analytical culture & skills
• People: yours & every stakeholder• Planet: ACT on innovation, packaging, promotion...• Profit: business-minded marketers
FACTS revises the way marketers deal with brands
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• Strategic consistency
•Brand consistency
•Simplicity & relevance
• Customer centricity
•Build knowledge
• Focused team
• Continuity
Agenda
-Branding in the FACTS vision-What is a brand?-How to build a strong brand?-How to build an efficient Brand architecture-What about brand loyalty?-How to create value for your brand-The future of brands: some critical questions and insights
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What is a brand?
A brand is not .....
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... And not .....
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.... And not ....
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A brand is a world of experiences
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Which elements define the brand Carrefour?
Question
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The promotions
The shops
The casiers
The logo
The private labels
The communication: folders, tv
commercials, emailing, DM...
The parking
The assortment
The pricing The shoppers
The help desk
The quality of goods
The instore navigation
The personnel
The evolution
The claim/promise
The opening hours
Tone of voice
The loyalty card
CSR/sustainabilitty policy
The caddies
.............
Nowadays, a brand has an uncountable number of “brand
drivers”
So, what is a brand?
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A promise between a company and its customers …
… of emotional and functional benefits around products, services, image and experience in the large sense
Lovemarks put more focus on the emotional bonds because these create “loyalty beyond reason”(Saatchi & Saatchi philosophy )
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“The essential difference between emotion and reason is that emotion leads to action while reason leads to conclusions.”
Donald Calne, Neurologist
Agenda
-Branding in the FACTS vision-What is a brand?-How to build a strong brand ?-How to build an efficient Brand architecture-What about brand loyalty?-How to create value for your brand-The future of brands: some critical questions and insights
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The brand
Remark: Terminology might be confusing and complex: simplify and align!
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The brand mission The brand vision The brand purpose
The brand values/principles
The brand personality
The brand equity
The brand promise or brand positioning
The brand story
The brand is not a marketers responsiblity only....
• Ambler, 2000, Agile Marketing: A holistic view on marketing“Marketing is what the whole company does, not just marketers. More organizations have understood that brand leadership requires a strong alignment between the promise of the brand and the delivery of the brand. To do this, every function needs to be coordinated both by ensuring that marketing only makes promises that the organization can keep, and that the organization then actually keeps the promises.
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But it is his responsibility to make it through
and to keep the brand promisetowards his customers
What is the company strategy?
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Michael Treacy & Fred Wiersema
Come to a strong brand is an intense process with though criteria, where multiple stakeholders have to be involved
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Is it relevant?
Is it unique?
Is it sustainable?
Fit with equity of today?
Brand Positioning
or Brand promise
Do we still need a USP?
• Not necessary on product level: Service, Tone of voice, Waranty, Emotional benefit, Brand involvement
• Fons Van Dijck/Herman Toch: functional benefit might work better for knows and strong brands, emotional benefits for new brands
• Check competition!
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YES, WE DO!
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« Innovative Discovery »
« Idea Gen » « Positioning Building »
« ImplementationRoadmap »
ConventionsMega-TrendsValue EnginesCore CompetenciesCustomer Insights
Divergence:Generate new
Branding Opportunities
Convergence:Define your positioning
space…
Determine growth platforms
and next steps
The process to come to a strong positioning is always similar, but the methodology is quite different
Case: NIBC, an exisiting company new in Belgium
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« Innovative Discovery »
« Idea Gen » « Positioning Building »
« ImplementationRoadmap »
Desk researchOnline consumerResearchBelgian key insightsCompetitive analysis
Workshop“Admoods”- Look at commercials- Talk about benefits/tone of voice/corner-Stones- Select top 3- Agreement
THoM gathered all insights and bundled them in a brand positioningwhich was discussed and agreed in the board
Go to Market PlanSelection of agency
Dutch online saving bank
Tempo Team: an existing brand in an international environment
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« Innovative Discovery »
« Idea Gen » « Positioning Building »
« ImplementationRoadmap »
Belgian InterviewsInternational itv’sCollect “stories”Int’l workshopDefine different ConceptsDestill int’l positioning conceptsCompetitive analysis
Select relevant Belgian conceptsWorkshop including Homework (incl brand Associations to gatherinsights,benefits...)- Presentation of strongbrand casesReflect on TT & selecttop 3 benefits &Characteristics
THoM gathered all insights and bundled them in a brand positioningwhich was discussed and agreed in the board
Go to Market Plan for specific Target groupsInt’l approval (on going)
Interim provider
Remind the FACTS criteria
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simplicity
relevance
consistency
Simplicity requires “making choices”
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Relevance is key in the “new world”
A marketer has to ask himself the questions:• What is the meaning of my company/brand for the customer?• Does this make the life of my customer easier? Do I add value?• How can I realize this in a differentiating way from the compeition?
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Herman Toch, Transformeren om te overleven, 2012, customers ask following questions before they choose you (and keep on chosing you)
1. Does the brand care about me?2. Does the brand really tries to make things better for me?3. Can I really trust your brand?4. Does the brand try to make my world a better place?5. Do I get a voice?
Once defined the brand positioning, consistency is essential
Consistency implies longer term thinking• Approved positionings (incl external partners)• Marketing initiatives has to support the positioning• Consistency in all media• Consistency in all distribution channels• Visual consistency
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Example of not being consistent
• 2007: Choice, price, quality, ¼ heure d’avance. En alles is mogelijk.
• 2008: Simplicity. Zo eenvoudig kan het leven zijn• 2009: Price. Pouvoir d’achat.• 2010: Choice. Blij met je keuze.
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Which to you are strong and consistent brands?
Question
Agenda
-Branding in the FACTS vision-What is a brand?-How to build a strong brand?-How to build an efficient Brand architecture-What about brand loyalty?-How to create value for your brand-The future of brands: some critical questions and insights
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The existing models
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The brand architecture is linked to the heritage, the evolution of the company and the company objectives-Check how the company was founded
-Check what the objectives are- Focus on specifiek target group
- All households?- Sustainable house holds?- Price sensitive house holds?
-Check the growth strategy (mergers...)- F.i. The Volkswagen group
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Focus on hardware? Which category? Or focus on content? Big loss of MS in televisions, gaming, ....
Recent evolution....focus on “entertainment”.....
For endorsed brands, the positioning of the mother brand is key
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Does a single brand have its limits ?How many line extensions can a brand support?
Line extensions have to fit with the brand’s positioning and USP
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Positioning & USP
Product Product Product …
Brand
Product extension
A product extension borrows from the mother brand and
gives back
In the beginning, there was … the Dove soap bar
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Years later, the Dove brand has many extensions, all communicating the Dove USP
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…
bra
nd
pro
du
ct
Exte
nsio
ns
¼ hydrating cream
Nivea went too far and removed the beauty range
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USP USP USP …
Brand positioning
Brand positioning
Brand positioning …
In a House of brands, every brand needs it’s own positioning and own USP
Company
Brand Brand Brand …
In a House of brands, every brand needs it’s own positioning and own USP
In a House of brands, every brand needs it’s own positioning and own USP
Volkswagen Group
Agenda
-Branding in the FACTS vision-What is a brand?-How to build a strong brand?-How to build an efficient Brand architecture-What about brand loyalty?-How to create value for your brand-The future of brands: some critical questions and insights
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To which brands are you loyal and why?
Question
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100% loyalty is out. Divided loyalty is in.
• Loyalty programs have become a commodity
• Forget the “old school” rules
• Focus on light users and penetration
#YMS2013
“Your consumers are just somebody else’s
consumers who occasionally buy
you” Martin Hammer
The combination of a penetration and a loyalty strategy is necessary and asks for a dual marketing approach
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Combined strategy and approach
Penetration growth
Loyalty growth
New customers might buy the brand
Existing customers might buy the brand more often
Most effective campaigns aim at new AND existing customers.A company is successful when it targets light users AND heavy users.
Mass Marketing Target Marketing
Reach all the buyers, including the occasional, light buyers and non-buyers
Reach all the heavy users
&
&
Agenda
-Branding in the FACTS vision-What is a brand?-How to build a strong brand?-How to build an efficient Brand architecture-What about brand loyalty?-How to create value for your brand?-The future of brands: some critical questions and insights
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What is the brand value of the top 3 best global brands 2013?(Apple, Google, Coca-Cola)
Question
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There are many brand equity measuring
Brand awareness
Perceived quality
Perceived brand image/identity(e.g. leadership, trust, innovation, …)
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3
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Customer satisfaction (satisfaction looking backward)- Perceived product performance- Perceived service performance - Perceived channel performance- Perceived total customer experience
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These drivers constitute a brand equity index, but their weights are industry-specific and dynamic (changing customer patterns)
Brand preference
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Recommendation
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Loyalty (satisfaction looking forward)
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“Push to add drama”: viral marketing to create brand awareness for .....
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Brand awareness
TV channel TNT
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What do you do when Duracell batteries are out of stock at Carrefour?
Question
Brand preference
Perception is everything in the value creation of a brand
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Perceived quality
Louboutin has a high brand equity
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DifferentiationRelevanceKnowledge Esteem
Perceived brand identity
Ryanair is committed to address its reputation for poor customer service
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Ryanair will make interactions with customers easier in the future:• Booking tickets with a new
process• Returning customers will be
able to complete bookings faster
• Contacting the firm more easily if there are problems
This will be backed up by a newdigital marketing strategy:
moreinvestments in new media
DESCRIPTION
• Shake off its reputation for poor customer service
• Increase customer satisfaction
OBJECTIVES
Source: MarketingWeek – Ryanair overhauls digital strategy to focus on mobile and social media
Customer satisfaction
The Net Promotor Score measures attitudinal loyalty
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Question
Responses
Calculation
• Have you or would you ever recommend … to
others?
• 10 point scale
1 2 3 4 5 6 7 8 9 10
# Promoters - # Detractors# Respondents
Detractors Neutral Promoters
Recommendation
Loyalty is driven by two dimensions: switching barriers and involvement
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low high
Switching barriers
low
hig
h
Invo
lvem
ent
Loyalty
Keep the switching barrier high to prevent the customer from changing brands
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• Nespresso’s coffee machine could only be
filled by Nespresso capsules, which were
only available online and in exclusive
shops
• Consumers didn’t have the choice and
were attached to the brand
BUT:
• Douwe Egberts duplicated the capsules,
which can also be used in the Nespresso
machines and are available in the
supermarkets• Nespresso’s switching barriers decreased:
consumers can now easily switch between Nespresso and Douwe Egberts
• Nespresso will need to continue working on involvement
Loyalty
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The future of brands: some critical questions and insights
Discussion?
Will brands continue to exits in FMCG?Who is the brand owner? The customer or the company?Which brands will survive?What about sustainability?
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Join us at our Meet & Greet!
‘Rodins’, Oude Markt24, Leuven12/11/2012 – 19h00
Subscribe via:
www.thom.be/meet-greet