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BRAND MANAGEMENT Session 3 & 4: Leveraging the Brand

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Positioning, Brands and Brand Equity

A Brand Is …. a name, term, sign symbol or a combination of these, that identifies the maker or seller of the product. Symbolises…. The thoughts, feelings and activities current and potential customers associate with your product. Develops by communicating and delivering on compelling promises to the target market. Requires pan company / interfunctional commitment. Brand Equity “Brand equity is a reservoir of cash flow that has been earned but not yet released to the income statement” (Ambler Marketing and The Bottom Line)

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Enthusiasts Outside an Apple Store at 8am on the Morning of the iPhone 3G Launch

a reservoir of cash flow, earned but not yet released to the income statement Tim Ambler Marketing And The Bottom Line

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Brand Promise

Visibility

Promise Delivery

Leverage

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Four elements of brand management – 8 questions Evaluate your brand on a scale of 1 to 10 (1 poor, 10 excellent)

Brand Promise

Visibility

Promise Delivery

Leverage

Clear, compelling promise of unique value:

Strong, positive brand associations:

High levels of awareness of promise in target market:

Awareness achieved through paid, earned & owned media:

High internal awareness & alignment on promise :

Strong promise delivery across all touch-points:

Leveraged to grow in retention/ patient share/ referral or margin:

Leveraged to grow market share or addressable market:

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Promise (positioning)

Points-of-difference Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand

Points-of-parity Associations that are not necessarily unique to the brand but may be shared with other brands. Associations that other brands develop as points of difference

Brand Promise

Visibility

Promise Delivery

Leverage

Customer

Competitor Company

Points of parity

Points of differentiation

Points of differentiation

Points of differentiation – potential advantages within the category

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A Position should be unique Based on a functional, emotional and or symbolic benefit

Functional – what the product does

– Functionality

– Trust / Quality / familiarity

– Availability

Emotional – how the product makes me feel about myself

– Personal preference and characteristics Symbolic – what the product says about me

– Social value and meaning

A combination of all three

Dan Creed VP – Marketing BMW USA

Brand Promise

Visibility

Promise Delivery

Leverage

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Promise Delivery (post purchase)

Visibility

Marketing Tasks Across the brand Pyramid

Frame of reference and points of parity What category does the brand compete in and what common benefits does it provide ? Target Who is the brand for?

Bonding

Advantage

Performance

Relevance

Awareness

Points of difference and support What are the reasons to believe in the brand promise What are the Unique (functional, emotional, social) benefits offered?

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“In reality, 95% of advertising is a waste of money that isn't listened to or believed."

Bob Kuperman, CEO DDB (One of the world’s largest advertising agencies)

Brand Promise

Visibility

Promise Delivery

Leverage

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Google actually relies on our users to help with our marketing. We have a very high percentage of our users who often tell others about our search engine. Sergey Brin co-founder Google

Brand Promise

Visibility

Promise Delivery

Leverage

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"The restaurant manager trumps the brand manager every time in terms of our ability to deliver the brand promise." Russ Klein, CMO Burger King

Brand Promise

Visibility

Promise Delivery

Leverage

The best customer service is if the customer doesn’t need to call you, doesn’t need to talk to.

Jeff Bezos founder and CEO of Amazon

Brand Promise

Visibility

Promise Delivery

Leverage

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Client management behaviours will change if.....

leadership takes responsibility for development on a client centric organisational orientation

Brand Promise

Visibility

Promise Delivery

Leverage

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Leveraging Brand Assets: Key Indicators

1. Retention

– Our customers buying for longer 2. Share of Customer

– Our customers buying more from us 3. Referral

– Our customers advocating our product/ service 4. Margin

– Our customers paying a higher price 5. Share of market / Organic Growth

– Winning customers / business from competitors 6. Addressable Market

– Expanding the size of the potential market

Brand Promise

Visibility

Promise Delivery

Leverage

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#1 Retention Customer Effort Score

Brand Promise

Visibility

Promise Delivery

Leverage

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Source: CNBC 2012

# 2 Share of Customer

Brand Promise

Visibility

Promise Delivery

Leverage

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# 3 Referral

NPS % Promoters

(9 & 10) % Detractors

(0 to 6) = -

0 1 2 3 4 5 6 7 8 9 10

Detractors

Passives Promoters

Not Likely

Extremely Likely

Brand Promise

Visibility

Promise Delivery

Leverage

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# 4 Margin

Revenues Fixed Costs

Variable Costs

Operating Profits

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Price increase of 1%

Profit increase of 8%

1 101.0 13.5

12.5

Source: Compustat; Mckinesy Analysis

100.0

19.2

68.3

Mean Impact of Price Change on S&P 1500 Company (%) Brand Promise

Visibility

Promise Delivery

Leverage

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“The single most important decision in evaluating a business is pricing power…….

If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business.

And if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.”

# 4 Margin

Brand Promise

Visibility

Promise Delivery

Leverage

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# 5 Market Share

Brand Promise

Visibility

Promise Delivery

Leverage

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# 6 Size of Addressable Market

Brand Promise

Visibility

Promise Delivery

Leverage

BRAND MANAGEMENT

Session 3 & 4: Leveraging the Brand