Branding and positioning training kul nov 2013

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

3

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

4

What are your expectations of today?

5

Brands in the FACTS vision

6

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

7

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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11

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

20

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

36

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

48

50

To which brands are you loyal and why?

Question

58

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

71

There are many brand equity measuring

Brand awareness

Perceived quality

Perceived brand image/identity(e.g. leadership, trust, innovation, …)

1

3

4

Customer satisfaction (satisfaction looking backward)- Perceived product performance- Perceived service performance - Perceived channel performance- Perceived total customer experience

5

These drivers constitute a brand equity index, but their weights are industry-specific and dynamic (changing customer patterns)

Brand preference

2

Recommendation

6

Loyalty (satisfaction looking forward)

6

“Push to add drama”: viral marketing to create brand awareness for .....

72

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

77

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

80

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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‘Rodins’, Oude Markt24, Leuven12/11/2012 – 19h00

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