brands criticized and vilified what a great opportunity ... · pdf filebrands criticized and...

Brands criticized and vilified... What a great opportunity!

© Jean-marc Lehu - Brussels, Thursday 9th October 2014 1


BABMJean-marc Lehu, Brussels, OCtober 9th, 2014



Sacred is the brand



Big trouble in little Brand land



"I never guess. It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.” Sir Arthur Conan Doyle

2013

1985

1993

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1993

2006

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1957

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hp

19791982

1981



Marketingmyopia


© Jean-marc Lehu - Brussels, Thursday 9th October 2014� Jean-marc Lehu 2010-2011 Master 2 Pro – Université Paris 1 Panthéon-Sorbonne 9

Myopia



Seven plagues of marketing myopia

195719651985 1990

199319992007



1957: CommunicationHow does the consumer / shopper wrong, handled, robbed ...

What is the advertisingcommunication reallyused for?

Hide defects and convince?

or

Valuing reality and seduce?



1965: consumerism

Lawyer Ralph Nader attacked the automakers for their unconsciousness

GM Corvair model is fingered as dangerous. GM knew!

1.3 million recalled vehicles (06.10), 473 841 (12.9)

A new form of consumerism is born

Activism anti / alter-globalists take over in the 1990s



1985: Marketing research1957: Ford designs and produces Edsel with no marketing validation: Flop

1984: Coca-Cola pushes the rigorous process of marketing research at its height, with the project Kansas

April 1985: the New Coke is launched on the American market by Roberto Goizueta

July 1985: the New Coke is abandoned and the Coca-Cola Classic reintroduced



1990: Web timeTimothy John Berners-Lee and Robert Cailliau design the World Wide Web in Switzerland

New communication, new kind of contact with the consumer / shopper, new distribution, new price comparison, new power... not fully perceived

Brand name protection on the DNS sometimes overlooked

Acquisition of direct and global speech by the consumer ignored

2010 : Splinternet. Splin… What?!



1993: Price of a brandFriday, April 2nd of 1993, Philip Morris lowers the price of its flagship brand of 40%

The stock drops of 23% in one day from $ 64.12 to $ 49.37

$ 13 billion market capitalization disappears

Within 24 hours, a marketing variable is projected at the front of the stage.

Price is A key variable



1999: Social networkEmergence of digital social networks with MSN Messenger (dropped in 2013!)

New direct, universal and almost instantaneous form of free communication between individuals

Loss of control / contact for the brands

Increasing consumption of discretionary time



2007: New consumptionProfound financial crisis with deep economic and social implications

“The World is flat”

Diminishing visibility + increasing uncertainty = logical anxiety = constant fragility

Consumption less predictable, paradoxical (more rational AND irrational), durably competing with precaution savings, CSR consciousness…

How many brands have changed / adapted their business model according to this new paradigm?



So… what now?



Choice is yours



Sacred brands

Serendipity



Sacred is the brand


© Jean-marc Lehu - Brussels, Thursday 9th October 2014

Real involvement of customers in the Starbucks experienceAccept the idea that the brand belongs to its customersPromote interactive sharing, instead of just listeningMake customers feel they are important to StarbucksGrabbing good opportunities

Real involvement of customers in the Starbucks experienceAccept the idea that the brand belongs to its customersPromote interactive sharing, instead of just listeningMake customers feel they are important to StarbucksGrabbing good opportunities

23

Sacred brands: Serendipity



Opening widely internal R&D to external ideas from all over the worldImproving and accelerating innovation processesCrossing cultures, attitudes, behaviors…Empowering intelligenceMultiplying profitable opportunities

Opening widely internal R&D to external ideas from all over the worldImproving and accelerating innovation processesCrossing cultures, attitudes, behaviors…Empowering intelligenceMultiplying profitable opportunities

24

Sacred brands: Serendipity



Sacred brands

Ambition



Creating new attitudes, new behaviors

Sacred brands: Ambition



UtilityPrice

Creating new attitudes, new behaviors

Advancedtechnology

Lifeexperience

Sacred brands: Ambition



Sacred brands: AmbitionFast food (Mexican food) founded in 1993 in Denver

+1600 restaurants today

Moto: Food With Integrity

Positioning: fast-casual

Value: Civic engagement

Highlighting the quality of ingredients and "traditional“ cooking methods

2012: first restaurant in France Boulevard Montmartre, Paris



Sacred brands

Courage



Sacred brands: CourageApoorva Mehta launched Instarcart in San Francisco in 2012 in Chicago and Boston, Austin, L.A., Denver, NYC, Washington...

Delivery (personal) of shopping for $ 3.99-5.99

Instacart Express ($ 99 / year) / free orders over $ 35

Apoorva Mehta launched Instarcart in San Francisco in 2012 in Chicago and Boston, Austin, L.A., Denver, NYC, Washington...

Delivery (personal) of shopping for $ 3.99-5.99

Instacart Express ($ 99 / year) / free orders over $ 35



Sacred brands: CourageBel group invested 144 M$ in a 3rd factory in the United-States, opened in July 2014

Capacity: 1.5 M Babybels / day

USA : 8% of international sales

Bel group invested 144 M$ in a 3rd factory in the United-States, opened in July 2014

Capacity: 1.5 M Babybels / day

USA : 8% of international sales



Sacred brands

Responsibility



Sacred brands: Responsibility



Sacred brands: Responsibility“Business is here to serve society. We need to find a way to do so in a sustainable and more equitable way not only with resources but also with business models that are sustainable and generate reasonable returns. Take the issues of small hold farming, food security, and deforestation. Theyoften require ten-year plans to address. But if you’re in a company like ours and you don’t tackle these issues, you’ll end up not being in business. We need to be part of the solution. Business simply can’t be a bystander in a system that gives it life in the first place. We have to take responsibility, and that requires more long-term thinking about our business model.” Business, society, and the future of capitalism

Paul Polman - May 2014 – McKinsey Quaterly



Sacred brands

Evolution



Sacred brands: Evolution

1942(Gordon Harwell – Forrest Mars)

1942(Gordon Harwell – Forrest Mars)

DiversityDiversity

lighter boxes cardboard is a savings of 850 tones of

cardboard

EcologyEcologyNew materials in for UNCLE

BEN’S® Ready to Heat microwavable: 7,000 tones less of greenhouse gas emissions by 2015

EconomyEconomy

HealthHealthSodium levels in UNCLE

BEN’S® flavored Ready to Heat have reduced by 25 to 31%



Sacred brands: EvolutionHenkel Innovation Challenge 8 / 2014



Sacred brands

Determination



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ture,

Mind

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rtner

s, W

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ons1985

650marketing messages / day

1985

650marketing messages / day

An overexposed target

Today

5.000marketing messages / day

Today


2002


2002




Sacred brands: DeterminationOVH data computing hosting services founded in 1999 in France by Octave Klaba

Today: 17 centers, 800 engineers, 170,000 servers, 700,000 customers, 18,000,000 hosted applications

European leader, 3rd World leader

War of the secured 20 milliseconds

OVH data computing hosting services founded in 1999 in France by Octave Klaba

Today: 17 centers, 800 engineers, 170,000 servers, 700,000 customers, 18,000,000 hosted applications

European leader, 3rd World leader

War of the secured 20 milliseconds



Sacred brands: Determination



Serendipity

Ambition

Courage

Responsibility

Evolution

Determination

24/7 job !

Serendipity

Ambition

Courage

Responsibility

Evolution

Determination

24/7 job !

Sacred brands



Sacred brands



Serendipity: Seizing the opportunity of efficient licenses

Ambition: Reinventing manual creativity in a videogames world

Courage: Favoring open and disruptive innovation

Responsibility: Always putting safety first to get parents’ confidence

Evolution: Targeting girls (Friends), developing smartphones apps, opening discovery centers, producing The Lego movie…

Determination: Becoming world 1st toy maker (ahead of Mattel and Hasbro)

Serendipity: Seizing the opportunity of efficient licenses

Ambition: Reinventing manual creativity in a videogames world

Courage: Favoring open and disruptive innovation

Responsibility: Always putting safety first to get parents’ confidence

Evolution: Targeting girls (Friends), developing smartphones apps, opening discovery centers, producing The Lego movie…

Determination: Becoming world 1st toy maker (ahead of Mattel and Hasbro)

Sacred brandsSerendipity:

Ambition:

Courage:

Responsibility:

Evolution:

Determination:

Serendipity:

Ambition:

Courage:

Responsibility:

Evolution:

Determination:



Being able to enhanced the singularity of the brand

Cost: 1 $ Value: 75 $

Sacred brands

1 Kg



Why a “sacred” brand?Lego does not sell (anymore) plastic bricks, itoffers opportunities for fun creative stimulationLego does not propose a loyalty card, it offers a VIP status card to his fansLego does not try to convince parents buyers, itreassures about the development of the child’s manual ability and their intellectual creativityLego is not trying to convince potential prescribers children, it invites them to participate to an adventure in which they keep control and remain lead authors

Why a “sacred” brand?Lego does not sell (anymore) plastic bricks, itoffers opportunities for fun creative stimulationLego does not propose a loyalty card, it offers a VIP status card to his fansLego does not try to convince parents buyers, itreassures about the development of the child’s manual ability and their intellectual creativityLego is not trying to convince potential prescribers children, it invites them to participate to an adventure in which they keep control and remain lead authors

Sacred brands: Lego



Why a “sacred” brand?Lego does not innovate consistently to renew its range of products, it co-creates and validates the innovation constantly with its fans (i.e. see its Facebook page)Lego does not use "multi-channel" to market its products, it assists its fans where they want to find the brandLego does not legally own a trademark, itshares its property with responsibility, with passionate gamers (of all ages)Lego does not carry a trademark, day to day it makes alive the sacred singularity of the Lego brand

Why a “sacred” brand?Lego does not innovate consistently to renew its range of products, it co-creates and validates the innovation constantly with its fans (i.e. see its Facebook page)Lego does not use "multi-channel" to market its products, it assists its fans where they want to find the brandLego does not legally own a trademark, itshares its property with responsibility, with passionate gamers (of all ages)Lego does not carry a trademark, day to day it makes alive the sacred singularity of the Lego brand

Sacred brands: Lego



How to make, protectand develop

a sacred brand?



250,000 BC

Data, data, data…



25,000 BC

Data, data, data…



250 years ago

Data, data, data…



25 years ago

“It's difficult to imagine the power that you're going to have when so many different sorts of data are available.” Sir Tim Berners-Lee

Data, data, data…



ACTUALITÉ



Deductive reasoningfrom the past

Inductive reasoningfrom the present

Data, data, data…



Structureddata

Non-structureddata

Data, data, data…



+100 hours of videouploaded

Sour

ces :

You

Tube

/ The

nextW

eb.co

m ; T

he R

adica

tigro

up re

port

; ABC

New

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orldo

meter

s; D

igital

Mar

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tatist

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in;

Tech

Crun

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Post

; Med

iabist

roOc

tober

2014

168 millions emails posted

347,222 tweets sent

278,000 photos shared

2014Data, data, data…



ACTUALITÉVs.




BABMJean-marc Lehu, Brussels, OCtober 9th, 2014

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