79415019 Lovemarks Book

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    CHAPTER ONE: START ME UP

    Heres what I learned from five great businesses Ive workedfor: Always surround yourself with Inspirational Players

    Zig when others zag Get out of the office and into the

    street Live on the edge Nothing is impossible.

    CHAPTER TWO: TIME CHANGES EVERYTHING

    The journey from products to trademarks, from trademarks

    to brands. A quick look at why brands are running out

    of juice as they confront the Attention Economy.

    CHAPTER THREE: EMOTIONAL RESCUE

    Why I believe emotional connectionscan transform brands.

    If you spend your days reviewing data, read every word of this

    chapter. Twice. INSIGHTS: Maurice Levy, Publicis Groupe

    CHAPTER FOUR: ALL YOU NEED IS LOVE

    Taking brands to the next level depends on one four-letter

    word: L-O-V-E. INSIGHTS: Sean Fitzpatrick, sportsman;

    Tim Sanders, Yahoo!

    CHAPTER FIVE: GIMME SOME RESPECT

    Love will change the way we do business but only if it

    is built on Respect. No Respect, no Love. Simple. Lets

    celebrate what respect has achieved.

    CHAPTER SIX: LOVE IS IN THE AIR

    Okay, so how do you create loyalty beyond reason?

    INSIGHTS: Alan Webber, Fast Companymagazine

    CHAPTER SEVEN: BEAUTIFUL OBSESSION

    So what are Lovemarks?They inspire loyalty beyond reason

    through their obsession with Mystery, Sensuality, and

    Intimacy to create a premium. Here are our first ideas about

    putting them into action. INSIGHTS: Jim Stengel, Procter

    & Gamble

    CHAPTER EIGHT: ALL I HAVE TO DO IS DREAM

    Understand how Mystery can transform relationships with

    consumers. Great stories, mythic characters, the past,

    present, and future together, dreams and inspiration. Be

    inspired by the ideas and actions of great Mystery makers.INSIGHTS: Dan Storper, Putumayo World Music; Cecilia

    Dean, Visionairemagazine; Maurice Levy, Publicis Groupe;

    Sean Landers, art ist

    CHAPTER NINE: THE HUMAN TOUCH

    The five sensessight, hearing, smell, touch, tastemakeL ove m a rks real in the world. Leading sensualists show

    h ow they move us. INSIGH TS: Dan St o r p e r, Pu t u m a yo

    World Music; Masao Inoue, Toyota; Alan We b b e r,

    Fast Companym a g a z i n e

    CHAPTER TEN: CLOSE TO YOU

    Intimacy is the challenge of our time. Intimacy demands

    time and genuine feeling, both i n ve ry short supply. See

    h ow businesses deep into intimacy can create empathy,

    commitment, and passion. INSIGHTS: Sean Fi tzp a trick ,

    s p o rt sm an; C lare Hamill, Nike Goddess

    CHAPTER ELEVEN: AC ROSS THE BORDERThe L ove / Respect Axis i s your f irst step. By plotting

    w h e re you are today, you can trace where you need to go.

    Using the Love / Respect Axis, Kodak shows how they

    reinvigorated themselves with the youth mark e t .

    I N S I G H TS: Eric Lent, Ko d a k

    CHAPTER TW E LV E : I CAN SEE CLEARLY NOW

    The reinvention of research. Xploring, power listening, and

    powerful new proof that Lovemarks are what matter most

    to customers. INSIGHTS: Malcolm Gladwell , writer; Peter

    Cooper, QualiQuant International; Jim Stengel, Procter

    & Gamble; Clare Hamil l, N ike Goddess

    CHAPTER THIRTEEN: ILL FOLLOW THE SUN

    An Inspirational Consumer is precious beyond measure.

    Saatchi & Saatchi people share their most inspiring

    consumer stories. Tell me yours at www.lovemarks.com

    INSIGHTS: Tim Sanders, Yahoo!; Malcolm Gladwell, writer

    CHAPTER FOURTEEN: ROLLING THUNDER

    Lovemarks in action. Real l ife client stories from Olay, Tide,

    Lexus, Cheerios, and Brahma beer showing the power of

    Mystery, Sensuality, and Intimacy.

    CHAPTER FIFTEEN:WHAT THE WORLD NEEDS NOW

    The role of businessis to make the world a better place for

    everyone. Becoming a Lovemark has to be the destination ofevery business. Step up to the challenge. INSIGHTS: Dr. Arno

    Penzias, Nobel Prize winner; Jim Stengel, Procter & Gamble;

    Sandra Dawson, Cambridge University

    FURTHER READING

    INDEX

    Contents

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    I was born an optimist.

    I always looked for opportunities where others faced

    up to threats or weaknesses. I believed if you were

    going through hell, the only option was to keep going!

    During my childhood in Lancaster I always believed that nothing was impossible. Where better to findmyself than as CEO Worldwide of Saatchi & Saatchi, the Ideas Company that made this beliefa founding declaration.

    Ive been lucky to have been guided by exceptional people who have mentored me. Inspirational

    Players. People who believe that to dream is as important as to act, and that winners are powered bypassion and emotion.

    By the time I was ready to enter the world of work I wanted to go somewhere that was top of itsclass. Somewhere that relied on passion and inspiration as its driving force. Who better to work forthan the most inspirational businesswoman of the sixties, Mary Quant?

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    Products to trademarksIn the beginning products we re just, we l l

    p ro ducts. One was pretty much indistinguishablefrom another. Get hit over the head with Jakesclub or Freds club, the headache was much thesame. Trade was kept in the family. Making theright choice was easy.

    But people being people, even in such a simpletrading system, trademarks made an early entry.There are trademarks on pottery in Mesopotamia(now Iraq) dating as far back as 3000 B.C.

    There is a cafe I go to named SPQR. I t is namedafter one of the most feared and respected trade-

    m a rks the world hase ver known. Fourletters that told youthe mighty Ro m a nEm p i re was at hand.

    Over the centuries, trade increasingly stretchedpast local boundaries and the importance of trade-marks increased. I ts fine to trust the local villageblacksmith. You could check out the forge, bitethe metal, ask around. But the weird guy bringingin iron implements from the next village?Not so

    ea s y. So trademarks moved up a notch froms i mple name tags to marks of trust and reliability.

    From a businessperspective, trademarks play greatdefense. They offer legal protection to the uniquequalities of your products and services, and declareyour interests. Trademarks define territory.

    T h a ts how it works when you are in charge ofa business.

    To consumers, the picture

    looks somewhat different.They care about a trademark because it offersreassurance. With this, Ill get the quality I paid for.

    For both businesses and consumers, trademark sa re a sign of continuity in a constantly shift inge n v i ronment.

    As Kate Wilson, a prominent New Zealand patentattorney once told me:

    Patents expire, copyrights

    eventually run their course,

    but trademarks last forever.

    Trademarks are not exempt from change. SPQRgets thousands of hits on Google, but most ofthem are not for the Senate and People of Romebut for a popular computer gameSPQR: The

    Empires Darkest Hour!

    The history of trademarks is littered with once-famous names that have gone generic. Bad newsfor them, as all the value they have created withconsumers can be sucked up by just about anyone.Band-Aids, once a trademarked name, is nowthe generic term for any bandage that sticks overa small wound.Je ll -O and Va s e line ha ve beenpushed down the same route. And the processis still happening. In some countries, uniqueproduct names like Rollerblades and Walkman

    have recently been accepted as the given anddefining names for in-line skates and porta b lemusic players. Promotion to dictionary statusis no promotion at all.

    Just holding a trademark doesnt guaranteesuccessful differentiation, but it can be a gre a tstart. Over the 20th century some trademark sh a ve grown into enduring icons.

    The MGM lion first roared in 1928 for the silentmovie WhiteShadowsof theSouth Seas. Work outthe technology on that one! And if you have ever

    wondered whatit says in thecircle that framesthe lion, tryArsGratia ArtisArtfor Arts Sake.

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    They cant stand out in the marketplace and

    they are struggling to connect with people.

    Here are six reasons why.

    1. Brands are worn out from overuse

    Michael Eisner of Disney has called the word

    brand over-used, steri le, and unimaginative. H es

    right. As the brand manual grows heavier and

    more detailed you know youre in trouble. Making

    sure the flowers in reception conform to the brand

    guidelines just shows you are looking in the wrong

    direction. Consumers are who you should bepaying attention to. What matters to them.

    Otherwise, youre hiding, and youre in trouble.

    2. Brands are no longer mysterious

    There is a new anti-brand sensibility. There is

    much more consumer awareness, more consumers

    who understand how brands work and, more

    importantly, how they are intended to work on

    them! For most brands there is nowhere left to

    hide. The information age means that brands are

    part of the public domain. H idden agendas, sub-liminal messages, tricky movesforget it. For most

    brands it is a new age of consumer savvy; at the

    extremes its the attacks of Naomi Klein and the

    anti-global gang.

    3. Brands cant understand the

    new consumer

    The new consumer is better informed, more

    critical, less loyal, and harder to read. The white

    suburban housewife who for decades seemed to

    buy all the soap powder no longer exists. She has

    been joined by a new population of multi-gener-

    ational, multi-ethnic, multi-national consumers.

    4. Brands struggle with good

    old-fashioned competition

    The more brands we invent the less we notice

    them as individuals. If youre not Number One

    or Two, you might as well forget it. Its like kids in

    a family. You might remember the names of three

    kids, even five. But ten?And the greater the

    number of brands, the thinner the resources

    promoting them. You get a treadmill of novelty,

    production value, incremental change, tactical

    promotions, and events.

    5. Brands have been captured by formula

    I lose patience with the wanna-be-science of

    brands. The definitions, charts, diagrams, and

    tables. There are too many people following the

    same rule book. When everybody tries to beat

    differentiation in the same way nobody gets

    anywhere. You get row upon row of what I call

    brandroids. Formulas cant deal with human

    emotion. Formulas have no imagination or empathy.

    6. Brands have been smotheredby creeping conservatism

    The story of brands has gone from daring and

    inspiration to caution and aversion to risk.

    Once the darling of the bold and the brave,

    brands are relying on the accumulation of past

    experiences rather than the potential of future

    ones. Headstones are replacing stepping stones.

    If the antics of Richard Branson cause a riot

    (and they do), how bland and boring has

    everyone else become?

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    Human beings arepowered by emotion,

    not by reason.Study after study has proven that if the emotion centers ofour brain are damaged in some way, we dont just lose theability to laugh or cry, we lose the ability to make decisions.Alarm bells for every business right there.

    The neurologist Donald Calne puts it brilliantly:

    The essential difference between

    emotion and reason is thatemotion leads to action while

    reason leads to conclusions.

    You dont have to be a brain surgeon to get that. Thereality we face does not req ui re mastery of arcaneter m ino lo gy, and its not about evaluating competingtheories about how the mind works or how it is structu red.

    The brain is more complex, more densely connected,

    and more mysterious than any of us can dream. Thatsas much as we have to know. Emotion and reason areintertwined, but when they are in conflict, emotion winsevery time. Without the fleeting and intense stimulus ofemotion, rational thought winds down and disintegrates.

    Consumers who make decisions based purely on factsrepresent a very small minority of the worlds population.They are people without feelings, or perhaps people whoput their heart and emotions in the fridge when they areleaving home in the morning, and only take them out againwhen they go back home in the evening. Although even

    for these people, there is always some product or servicethey buy based on impulse or emotion.

    Maurice Levy, Chairman, Publicis Groupe, Paris

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    The Lovemarks of this new century will be the brands and businesses thatcreate genuine emotional connections with the communities and networksthey live in. This means getting up close and personal. And no one is goingto let you get close enough to touch them unless they respect what you do

    and who you are.

    Love needs Respect right from the start. Without it, Love will not last. Itwill fade like all passions and infatuations. Respect is what you need whenyou are in for the long haul.

    Respect is one of the founding principles of Lovemarks.

    Management loves the idea of Respect. It sounds seri ous and objective,easily measured and managed. In fact, Respect has been prodded ands q ue ezed so often over the last century that i ts real power has beenu nd e rvalued. Respect is the foundation of successful business.

    At Saatchi & Saatchi we decided one thing was mandatory from theget-go: No Respect. No Love.

    But Respect needs to be reinvigorated. We need to understand what itdemands. We need to expand our Respect metrics from financial andproduction performance to take on the deeper demands Respect makes

    of us. Respect looks to performance, reputation, and trust as its organizingprinciples. Within each of these principles I believe there is an inspiringcode of conduct to lead you forward.

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    Perform, perform, performRespect grows out of performance. Performanceat each and every interaction. Peak performanceas the ultimate table-stake of all table-stakes.

    Pursue innovationInnovation is kaizen, continuous improvement,for consumers. Every business today is expectedto innovate, and to innovate meaningfully whilec reating value.

    Commit to total commitmentGoing the full distance is the price of Respect.The new active consumer judges you at everyencoun ter, every touchpoint, and will punishfa ilure by not coming back.

    Make it easyThe increasing complexity of many goods andservices has raised the stakes. The equation issimple. If its hard to use, it will die. Goo d- byeVCR. Hello DVD .

    Dont hidePeople can only respect you if they know whoyou are. Rem e m b e r, in todays Internet environ-ment there is now here you cannot be found.Dont even try.

    Jealously guard your reputationBuilt over a lifetime. De s troyed in an instant.Consumers today are ruthless if you let themdown. So dont .

    Get in the lead and stay thereTo be out-front can be lonely and uncomforta b le,but re m ember, the lead husky gets the best view.

    Tell the truthBe open. Front up. Admit mistakes. Dont cove r

    u p, it will get you every time. Be lie ve in your s e lfat times like this it may be the only thing youhave. And at times like this your reputation isyour premium defense.

    Nurture integrityThe corporate shake-ups of the last few years haveput the spotlight back on integrity: the integrityof your people, your products, your services, your

    financial statements and, most importantly, yourpersonal integrity.

    Accept responsibilityTake on the biggest responsibility of allto makethe world a better place for everyone, creatingself-esteem, wealth, prosperity, jobs, and choices.Quality is the measure by which you exceedexpectations. Quality is all about standards. Keepit simple: set high standards and then exceed them.Meet, Beat, Repeat.

    Never pull back on serviceService is where transactions are transformed intorelationships. Where Respect meets Love. It is thefirst moment of truth.

    Deliver great designAttention Economy 101. Competition is hotand getting hotter. If yo ure not aestheticallystimulating and functionally effective you justmerge into the crowd. You have to b ed i f f e re n t ,not just a c t d i f f e rent.

    Dont underestimate valueNot just real dollar value but theperceptionofvalue. Only when people perceive the value theyare getting as higher than the cost will they respectthe deal you offer. Sam Walton built Wal-Mart,the biggest retail empire in the world, by a relent-less focus on best value.

    Deserve trustConsumers want to trust you. They want you toremain true to the ideals and aspirations you share

    with them. Practice what you preach. Never letthem down.

    Never, ever fail the reliability testExpectations skyrocket: cars always start first time,the coffees always hot, the ATM is always open.Today reliability is the door charge for Respectbefore the show begins.

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    My ideas we re based on work we had done comparing brands and what were emerging as Lovemarks.The best brands were Trus tmarks, we had decided, but the great ones were Lovemarks. We chartedthe differenc e s:

    I said in the article:

    Im sure that you can charge a premium for brands that people love. And I m also sure that you can onlyhave one Lovemark in any category.

    BRAND

    Information

    Recognized by consumers

    Generic

    Presents a narrative

    The promise of quality

    Symbolic

    Defined

    Statement

    Defined attributes

    Values

    Advertising agency

    Professional

    lovemark

    Relationship

    Loved by people

    Personal

    Creates a love story

    The touch of Sensuality

    Iconic

    Infused

    Story

    Wrapped in Mystery

    Spirit

    Ideas company

    Passionately creative

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    Looking for LoveAs we started to shape Love m a rksat Saatchi & Saatchi we saw howthe Love/Respect Axis could help uswork out where they fitted.

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    The Love/Respect AxisSaatchi & Sa a t c h is Chairman, Bob Se e l e rt, is

    a smart man and a great soundi ng board forideas that are struggling to re a l i ze themselves.

    We we re waiting at Auckland airport late onee vening on our way to Los Angeles and I start e don my Love rap. Bob had heard most of i tb e f o re but this time I pulled out a napkin andd rew a horizontal line showing Love at one endand Respect at the other.

    I showed Bob how it might work. How everythingwas telling us that brands had run out of juice.How they had to evolve into something more.

    And how I would place this new kind of brandmoving beyond Respect and up into Love at thetop of the line. Products would live at the bottomof the line and standard brands would be at thelower end.

    The goal would be

    at the top of the line.

    High on Love!

    Bob looked at it for a couple of minutes.T h e res another way to show this to moreeffect, he told me. Taking the pen he drewa second line, this one crossing over myL ove / Respect line midway. My line wastransformed in an instant into an axis.

    Bob was right. The axis format immediatelyshowed Love as a goal above and beyond Respect.Now we could clearly show the ongoing importanceof Respect and the urgency of moving into a

    relationship based on Love. Love of design,L ove of service, Love of customers, Love of li fe.

    Without Respect there is no foundation forany long-term relationship. Without the sharpdelineation of the Axis format, it was too easy forour ideas about Love to float off into feelings

    with no practical edge. Okay if we wanted to bepsychotherapists, but somehow that was not wherewe were headed! Bob brought Love to earth.

    Respect is the key

    to the success of many

    of our biggest clients.

    Such success should

    not be devalued;its just no longer enough.

    Companies l ike big-time Saatchi & Sa a t c h iclients Toyota and Procter & Gamble havei n vested billions and won astonishing Respectfor their products and brands. And they havedone it through sustained feats of focus andself-discipline. W h a t e ver we called the newgeneration of brands, it was going to need

    Respectand a lot of it. Respect, it was clear,had to be table-stakes. No Respect, no admission.

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    Above the low Respect line on the left are most brands.This is where the efforts and investment of the last 50years have gotten them.

    But many brands risk falling into the sand trapbelowtough competition, tight margins, and lack ofindividuality turning them into blands. Others havebuilt up high levels of Respect based on soundmanagement and continuous improvement. But whatthey have earned in Respect has little emotion. Sensible

    and well-measured, its hard to tell one from another.

    The high life In the top right the sun always shines: high Respect,high Love. Why wouldnt you want to be there?You know who belongs in this quadrant by instinct.Virgin is there. United would like to be. The iMac?Yes.The ThinkPad?Dont think so. I ts home for Disneylandbut not for Seven Flags. Make your own list.

    FADS

    COMMODITIES

    Stuck in the middlewith you

    Love

    LOVEMARKS

    BRANDS

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    Great Stories

    Past, Present, and F

    Taps Into Dreams

    Myths and Icons

    Inspiration

    Sound

    Sight

    Smell

    Touch

    Taste

    Commitment

    Empathy

    Passion

    Lovemarks made immediate sense. Every person we deal withis an emotional human being and yet business had been treat-ing them like numbers. Targets. Statistics.

    Respect was something that Saatchi & Saatchi understood.Over the years we had put a lot of time into building ourclients products into some of the most highly respectedbrands in the world. Now it was time to focus on what madesome brands stand out from the crowdwhat made somebrands loved.

    When it came to working out what gave Lovemarks theirspecial emotional resonance, we came pretty quickly to:

    These didnt sound like tradit ional brand attributes. And theycaptured the new emotional connections we were seeking. AsI have already mentioned, we were convinced from the startby a very important idea that became the heart of Lovemarks.

    Lovemarks are not owned

    by the manufacturers, the

    producers, the businesses.They are owned by the

    people who love them.

    From there it was easy to agree that you only get to bea Lovemark when the people who love you tell you so.But just sitting around waiting for consumers to tell youyoure a Lovemark could mean a very long wait.

    Love is about action. Its about creating a meaningful

    relationship. Its a constant process of keeping in touch,working with consumers, understanding them, spendingtime with them. And this is what insightful marketers,empathetic designers, smart people on the check-out andproduction line do every day.

    Now we were ready to create our principles.

    Mystery

    SensualityIntimacy

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    Kevin Roberts passionately believes that love is the way

    f o rward for business. In his second b ook, LOV E M A R K S: T H E

    F U T U R E B E YO N D B R A N D S, Roberts recounts the journey from

    Products to Trademarks to Brandsand the urgency of taking

    the next step upto Lovemarks.

    Roberts offers a lively, critical assessment of brands and

    the problems that face them in an increasingly competitive

    world. His argument is straightforward. Brands have simply run

    out of juice.

    The solution? The creation of products and experiences

    that have the power to create long-term emotional relation-

    ships with consumers.

    To get there, Roberts advocates infusing brands with the

    fundamental Lovemark elements: Mystery, Sensuality, and

    Intimacy. Mystery enters by drawing on the past, present, and

    future, the value of myths and icons, and the power of inspiration,

    and by tapping into dreams. Sensuality and the five senses can

    be used to find touchpoints with consumers. Intimacy is created

    through commitment, empathy, and passion. The power of these

    dynamic forces is captivatingly presented with lively anecdotes,

    living examples, and graphic illustrations drawn from the world

    of advertising and beyond.

    The idea that consumers, not companies, own Lovemarks

    is fundamental. This book shows that not only business

    mavens, but the special people that Roberts calls Inspirational

    Consumers, can shape the future of commerce.

    B U S I N E S S / A D V E RTISI NG THEORY

    H a rd c o v e r, 8 x 9.75 inches, 224 pages,

    four-color illustrations thro u g h o u tISBN 1 -57 6 8 7 -2 0 4-1 $ 2 7 . 5 0

    (Cnd $39.95)

    KEVIN RO B E RTS

    is CEO Wo r l d w i d e

    of ideas company

    Saatchi & Saatchi,

    one of the worlds

    largest and most

    successful creative

    organizations work-

    ing on more than

    fifty of our most valuable global brands. Heading a

    team of more than seven thousand people in

    eighty-two countries, Roberts led Saatchi &

    Saatchi to become both Advertis ing Age a n d

    Adweek magazines Global Agency Network of the

    Year in 2003.

    Kevins passionate belief in

    building brands consumers love

    is inspirational and effective.

    A.G. Lafley,

    CHAIRMAN, PRESIDENT, AND

    CHIEF EXECUTIVE, PROCTER & GAMBLE

    Can business make the world a better place? Of course it can. Will business take

    up the challenge? It is in our best interests to do so, and lets face it, our best

    interests have been a powerful driver for many centuries. What can inspire us

    with the emotional urgency required to undertake this epic task? The creation

    and rewards of Lovemarks.

    lovemarksthe future beyond brands

    Kevin Roberts, CEO Wo r l d w i d e, SAATCHI & SAAT C H IForeword by A.G. Lafley, Chairman, President, and Chief Executive, Procter & Gamble

    68 Ch arlton Street, New York, NY 10 014 - 4 601

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