Strategic Strategic Experiential Experiential BrandingBranding

David VinjamuriJuly 2008

2

What We Will Cover

• Building customer experience Brand experience building exercise

• The Branded Lifestyle

• Building experiences with the five senses

• Engaging customers - customer-created experiences

Design a customer-run community

• Technology in Experiential Marketing

Online community exercise

• Engaging employees in delivering the brand promise

Design an employee-branded program for your brand

• Six brand lessons from Accidental Brands

Day IDay I Day IIDay II

3

What is Experiential Branding?

1. Engaging experiences created by marketers for your brand

• Ralph Lauren Flagship Store, NYC

• The World of Coke

• Massage Chairs in Brookstone

2. Extending your brand into the customers’ life

• Martha Stewart Houses

• Branny Academy

3. Engaging all the senses – choreograph the brand experience

4. Getting customers to build experiences

5. Brand building through employees

Building Customer Experiences

5

Questions

1. How do I build branded experiences for my customers?

2. How does brand engagement translate to increased brand loyalty?

3. How do I ensure these experiences are consistent with my brand strategy?

4. How do I measure the marketing ROI?

5. What are examples if successful brands using brand experiences?

6

Goal of Experiential Branding?

INCREASE BRAND EQUITY

7

What is Brand Equity?

8

Questions• Reduced Marketing Costs

• Trade Leverage

• Attracting New Customers

• Create Awareness

• Reassurance

• Time to Respond to Competitive Threats

• Anchor to Which Other Associations can be Attached

• Familiarity - Liking

• Signal of Substance / Commitment

• Brand to be Considered

• Reason to Buy

• Differentiation / Position

• Price

• Channel Member Interest

• Extensions

• Help Process / Retrieve Information

• Reason-to-Buy

• Create Positive Attitude / Feelings

• Extensions

• Competitive Advantage

Brand Loyalty

Brand Awareness

Perceived Quality

Brand Associations

Other Propriety Brand Assets

BRAND

EQUITY

• Provides Value to Customer by Enhancing Customer’s:

• Interpretation / Processing of Information

• Confidence in Purchase Decision

• Use Satisfaction

• Provides Value to Firm by Enhancing:

• Efficiency and Effectiveness of Marketing Programs

• Brand Loyalty

• Prices / Margins

• Brand Extensions

• Trade Leverage

• Competitive Advantage

Credit: David A. Aaker, Managing Brand Equity

9

Brand Equity: McDonalds

10

Brand Attributes

PRODUCT ATTRIBUTES

FUNCTIONAL BENEFITS

EMOTIONALBENEFITS

PERSONALITY

ICONS

11

1. Product Attributes

• Quick Serve• Consistent• Eat-in / Take-out• Counter / Drive-thru• Popular, basic items (burgers, fries)

• Inexpensive• Lots of locations

12

2. Functional Benefits

• Save time

• Satisfy hunger and thirst

• Whole family can enjoy

• Get toys in addition to food

• Don’t spend a lot of money

13

3. Emotional Benefits

• No hassles

• No surprises

• Safe haven

• Treat / break from busy day

• Kids have fun

• “Hero” with my kids

14

14

4. Personality / Values

• Happy• Kid-Friendly• Family-oriented• Simple, Basic• Trustworthy• Community oriented• American

15

15

5. Icons

• Golden arches

• Red and Yellow colors

• Ronald McDonald

• Playgrounds

• Happy Meals

• Big Mac

Case Study: Red Bull

17

“The thin color is unappetizing”

“It tastes sticky in my mouth”

“Totally disgusting”

What Consumers Said

18

“Totally unappetizing … sticky .. disgusting … No other new product has ever failed this convincingly”

- NPD Market Research report on first use test of Red Bull, 1984

Market Research Results

19

• Dietrich Mateschitz founds company 1984

• Bad research results

• Huge disputes with Austrian FDA

• Ad Agency cannot come up with a single good campaign idea

A GOOD TIME TO GIVE UP??

Getting the Bull Out

20

• Launches in Austria in 1987

• 8x the price of Coke

• Positioned as a ‘cool’ stimulant (Viagra in a bottle)

• Used regulatory trouble to create a big myth

Launch

21

“It took five years to gain permission for export into

Germany, Red Bull’s second market… Initially,

Munich became a flourishing black market and

speculation started why the drink was illegal in

Germany: Was it speed-in-a-can, a legal drug? Was

its Taurine sourced from Bull’s testicles, making Red

Bull an over-the-counter Viagra?”

The Red Bull Myth

22

• German moms united after Red Bull launched there in 1992 to get it banned again …

… making it wildly popular with teenagers

• Red Bull sold out everywhere in first three months on market …

… Which made it even more popular

Building the Myth

23

“Here is a non-alcoholic product about as caffeinated

as a cup of coffee – that’s managed to acquire a

reputation as a surefire wild-times elixir … a party

drink, a stimulant, an aphrodisiac, a raver’s ‘smart

drink’ gone mainstream. The strategy is rumor by

omission and, only when absolutely necessary, denial

… the public has filled in the blanks with speculation

and innuendo.”

The Press and the Myth

24

• The taste becomes a selling point.

• It tastes so strong – it must be working.

• Red Bull is always sold as a functional drink – it makes you work better.

• “The Taste Doesn’t Matter” - Mateschitz

What About That Taste?

25

• Lots of sampling at the ‘right places’

German Marketing

26

• “Flugtag” – German Flying Day

German Marketing

27

• 60 aspiring DJ’s invited to Music Academy

German Marketing

28

• Bartenders created the ‘Stoli Bully’

=

German Marketing

29

• Every employee has to be an enthusiast

• Every vendor is a believer

• Don’t waste time on non-believers

• Believe that they are the underdog

The Red Bull Culture

30

Issue Marketing Rules Red Bull Rules

Positioning Aspirational Functional

Advertising Launches Brand Support Role Only

Targeting Want Everyone Want ‘Right’ People

Distribution Broad Availability Limit Availability

Sampling Widespread High Quality Limited

Celebrities Pay for Celebs Don’t Pay Them

Merchandising Logos for All Out of Reach

The Red Bull Rules

31

• Focus on Building Brand Enthusiasts as Partners:• Bar staff• Cab drivers

Launching in New York

32

• Used exclusivity as a weapon• On-premise sales followed sampling• Limited Retail distribution for years

• Sampling in situ is the key tactic• Always provide a full, sealed can for sampling

Launching in New York

33

• Launched Red Bull in Austria in 1987

• Expanded to Germany in 1992

• Sold in 100 Companies in 2004

• Over 1 Billion Cans Consumed Annually

21-Year Report Card

34

5 Lessons from Red Bull

• Size is a by-product of success, not success itself

• Build enthusiasts, not just brand users

• Unmet demand is not always bad

• Everyone, including suppliers, must personify the Brand

• Overnight success takes time

35

Consistency

Evaluate your brand Expert Brand Insider Brand Lifestyle Brand Challenges Brand

What kind of experience will build your brand?

36

Measuring the Benefits of Branded Experiences

1. Top of mind unaided brand awareness

2. NPV (Net Present Value)

3. IRR (Internal Rule of Return)

4. The Brand Scorecard – can include share, awareness, etc.

5. The One Number You Need to Grow (handout)

6. Basic ROI

37

Case Study: American Express

http://www.askmrcreditcard.com/americanexpressnyccard.html

http://www.pollingcompany.com/cms/files/2005%20INNYC%20Survey%20Press%20Release.pdf

38

Case Study: The Range Rover Experience

Cost

of

Experience

Customer

Fee

Increase

in

Purchase

Interest

Increase

in

Customer

Lifetime

Value

39

Case Study: The Magic Kingdom• Created by a movie studio

• Very early Brand Experience (1957)

• Idea from successful studio tour

• Idea was to immerse consumers in the Disney

Brand – let the movies come alive

40

Case Study: Sony Style

• How do I showcase innovation?

• How do I get consumers to see my whole line?

• How can I make this an experience?

41

Brand Manager Tips

• Think small first – don’t set yourself up for failure

• Consider psychographic success measures – attitudes matter!

• Evaluate partners carefully

• Monitor costs closely

• Have a disaster plan

42

• Team up in groups of 4

• Pick an Asian / Global Brand

• Okay to use a brand you work on

• Design a brand experience

• Present Plan –Rationale, Plan, Resources Needed, Measurement

• 45 minutes

Exercise: Brand Experience

The Branded Lifestyle

44

• How can we increase consumer involvement with our brands?

• How can I extend brand awareness past traditional usage boundaries?

Create a branded lifestyle

Works for Lifestyle brands

Challenge

45

• How can you bring your brand to other parts of your customer’s life?

• Where will your brandy equity be strongest?

• When can this elevate the brand?

The Branded Lifestyle

46

• Martha Stewart

• American icon

• Domestic expert

• Seeks perfection

• Memorable experiences

• Martha Stewart Homes

• Design for everyday people

• Sense of style in the suburbs

• Great brand awareness

Martha Stewart Homes

47

• Bulgari

• Jewelry

• Fashionable

• Elegant

• Established

• Bulgari Hotels and Resorts

• Luxurious

• Elegant

• Design-driven

• Exclusive

Bulgari Hotels and Resorts

48

• Ikea

• Better living by saving money

• Sensible design = Scandinavian design

• Goes with starter homes

• Boklok House

• Good quality, cheaper

• Design is Ikea

• Elevates branding

Ikea Houses

49

• Disney

• Kid-focused

• Family-friendly

• Traditional values

• Entertainment

• Celebration, FL

• Traditional values

• Family-oriented

• Walk, not drive

• 9000 residents

Celebration, Florida

Building Experiences with

Five Senses

51

• Much of today’s branding relies overwhelmingly on SIGHT

• Opportunities:

• Sound - Is there a distinctive sound associated with your brand? (Intel)

• Smell – Do customers link a smell to your brand? (Rolls Royce)

• Taste – Does your brand evoke a taste? (Colgate, Listerine)

• Touch – Can you identify the brand with your fingers? (Coca-Cola)

Sensory Branding

52

Sensory Branding

Table 1

53

Sensory Branding

Table 2

54

• 1973 – Singapore Girl

• Uniform

• Make-up

• Perfume

• 1990s – Hot Towel Sent (Stefan Floridian waters)

• 1990s – music in lounges

Case Study: Singapore Airlines

55

Sensory Branding

Singapore airlines 5-D model

56

Sensory Branding

Intel

5-D model

57

Sensory Branding

Colgate

5-D model

58

The Sensory Brand Pyramid

Stimulate

Enhance

Bond

Stimulate: Create interest or anticipation with senses – the smell of warm bread, the sound of a can of Coke opening

Enhance: Use sense to intensify the brand experience – the smell of a Rolls Royce

Bond:Bond: Link a sensory input permanently to the brand – Singapore Airlines cabin scent and music

59

• Digital Video Recorder

• Strong competition

• Strong loyalty

• Used

• Touch – feel of remote

• Sound – sound of thumbs-up and thumbs-down button

• Sight – Thumbs-up/down

Case Study: TiVo

60

• What is new car smell?

• Every new Mercedes smells the same

• The smell is patented

• It lasts for 6 weeks on average

Case Study: Mercedes Benz

61

• Does your brand leverage the maximum number of senses for your industry?

Sensory Audit

3FMGG

Financial Services

E-Commerce

Service Providers

42

5Hospitality

Entertainment

Retail

Telecommunication

e-Commerce

(Digital Service)

6

Customer Engagement in

Brand Experience

63

1990s

• Subculture of Barbie-loving adults starts running Barbie Fashion Shows

• Artists and designers join this movement

• Subversive designs include “Trailer Trash Barbie” and “Big Dyke Barbie”

• Mattel sues fans

• Mattel loses

• Barbie loses cache, Mattel goes into slump and never recovers

Case Study: Barbie

64

Early Target:Internet junkiesHorror finaticsFilm buffs

Message:• Did the Blair Witch exist?• Did 3 film students die in the woods trying to find her?• Was “Blair Witch” a snuff film?

Result:• Consumers took over marketing• Gossip spread message

Case Study: The Blair Witch Project

65

Case Study: The Blair Witch ProjectCREATING THE MYTH ANTICIPATING THE FILM LAUNCHING THE FILM

Building Momentum

Becoming the “Next Big Thing”

Mass Release

Seeding the Myth Limited Release • Wide-release in 2,000+ theaters

Growing the Myth Switching message from myth to movie • Debuts at NYC’s Angelika Film Center

• 90% of advertising budget spent during this phase

Breeding the Myth The rumor spreads • Introduced at Sundance during midnight screening

• Limited distribution creating long lines and great PR

• Comic book, CD, and book released

Rumor starts • Second clip is shown on Split Screen Show

• Artisan buys distribution rights for $1 million • Advertising starts in phases: print, radio, and then TV

• Film racks up $224 million at the box office

• ???? And Sanchez appear on John Pierson’s Split Screen Show

• Pierson invites viewers to debate the rumor online

• Pre-screened at 40 colleges with students, but not with critics

• Web site gets 650,000 hits a day

• They show 8 minutes of footage ??? That it was ?? And in the woods

• Blair Witch website goes live

• Mentioned on Ain’t It Cool News website • Media jumps on bandwagon, appear on cover of Time magazine

• ??? of the ???? Students ????

• Team spreads misinformation and drives traffic to website

• Trailers shown on Ain’t It Cool, MTV and after Star Wars movie

• Add more “evidence” to the website – created fake fan sites

• Curse of the Blair Witch “mockumentary” airs on SciFi Channe;

66

H.O.G.s

• 400,000 members in 1,000 chapters

• Assisted, not controlled by Harley

• Organize rides and rallies

• Have a voice in the company

• Saved Harley in the 1980s during the Japanese Superbike invasion

Case Study: Harley Owner’s Group

67

• 2005 – Sprint contacts 1000 influential bloggers

• Offers them phones and free service for 6 months

• Gives them a forum to submit feedback

• Stays otherwise hands-off

Case Study: Sprint Ambassador Program

68

Brand Loyalty Ladder

Brand “Recruitment Process” to gain loyal and involved consumers.

Adoption

Trial

Reconsideration

Retrial

Discovery

Recommendation/ Raving Fan

69

• Mindstorm is toy with computer controller

• Targeted at teen boys

• Has adult geek-programmer fan base

• Reaches out to 3 fans

• Gets them to help design the next generation of products

Case Study: Lego Mindstorm

70

• Groups of 4

• Pick an Asian / Global Brand (can be yours)

• Design a brand community• Why will people participate?

• What makes it interesting?

• What makes it unique?

• Present Plan

• 45 minutes

Exercise: Brand Community

Technology in

Experimental Marketing

72

• Changes in how consumers interact with brands on the internet

• Online – co-creation and co-marketing

• Online community

• Online customization

What We Will Cover

73

• NEW MEDIA BOOTCAMP SLIDES

TO BE INSERTED

Engaging Employees in

Delivering the Brand Promise

75

• They know your brand best

• They are invested

• Their opinion can greatly damage you if negative

• Improving their opinion strengthens the brand

• They must understand the brand promise to deliver it

Why Think About Employees?

76

• They know your brand best

• They are invested

• Their opinion can greatly damage you if negative

• Improving their opinion strengthens the brand

• They must understand the brand promise to deliver it

Why Think About Employees?

77

• Early News

• Discounts

• Tell-a-friend bonuses

• Exclusive access

The Employee as Brand Insider

78

• New Tagline in 1998? – “The Best Cancer Care Anywhere”

• Promise failed

• Meaning of “care”

• Retained support staff

• The Janitor Incident

Case Study: Memorial-Sloan Kettering

79

• Train them in Brand Positioning

• Entrust them with positioning statement

• Use professionals to train

• Focus on the lesson – everything affects the brand

• Build branding skills among employees

Training Employees

80

• Focus on behavior, not attitude

• Describe specific examples

• Illustrate the negative impact on the brand

• Consider giving a PTO (paid time off) leave

• Ask for a new commitment

Dealing with Negative Employees

http://gothamist.com/2008/01/04/starbucks_baris.php

81

• Groups of 4

• Design an employee marketing program

• Explain employee benefits and employee responsibility

• Explain costs and potential revenue/costs savings

• 45 minutes

Exercise

Six Brand Lessons from Entrepreneurs

83

84

XXXX

XX

85

What is an Accidental Brand?

XX1. Must be started by someone with no

formal marketing training

2. Must solve their own problem

3. Brands 10+ years old

95

Six Lessons from Accidental Brands

#1#1

97

Memory: 20 GB 20 GB

Songs: ~4500 ~4500

iPod Second Generation

July 2002

Creative NOMAD Jukebox Zen

June 2002

http://docs.info.apple.com/article.html?artnum=61688-en http://www.mp3newswire.net/stories/2002/nomadzen.html

98

99

#2#2

101

102

103

#3#3

105

106

107

108

Am I being polite?

Did I offer to carry her

bags?

109

I’m not giving him my bags.

Do I have to tip him?

110

Did I greet the

customer with his name?

Do we have his loyalty program

number?

111

Did I do something

wrong?

Why isn’t she making

eye contact?

112

113

114

http://www.columbia.com/tv_ads/tv_ads.aspx

#4#4

116

117

Time to $100 Million in Revenue

22 years

21 years10 years

8 years

4 years

#5#5

119

Μύθος (míthos) - Mythos * From μυθολογέω "I tell tales," μυθολόγος "legend," μῦθος "story" and λέγω "I say"

* Definition: a usually traditional story of ostensibly historical events that serves to unfold part of the world view of a people or explain a practice, belief, or natural

phenomenon

λόγος - Logos * From λέγω - "I say"

* Definition: the divine reason implicit in the cosmos, ordering it and giving it form and

meaning.

Mythology – a story with a lessonMythology – a story with a lesson

120

121

#6#6