Brand
Management
Unleashing business potential through breakthrough marketing
Promise
Vehicle
What is a
Brand?
Asset
Edge
Unleashing business potential through breakthrough marketing
Guess brands!!!
Unleashing business potential through breakthrough marketing
Why do brand matters?
Unleashing business potential through breakthrough marketing
…Profits – today AND tomorrow
Unleashing business potential through breakthrough marketing
Value Proposition
Product & Services
Value
+
=
Price
Unleashing business potential through breakthrough marketing
Brand
Why do brand matters?
Preference:
Blind
51%
7 points ahead
No preference
Unleashing business potential through breakthrough marketing
Branded
23%
42 points behind
44%
65%
5%
12%
Defining a brand
The combination of tangibles and intangibles – a mix of
product, service, images, associations, people and visual
statements.
•
The functional qualities of a product + emotional
values that fulfill the needs and wants of the consumer.
•
While tangible benefits are often essential , the
emotional attributes may have the greatest appeal to
the consumer.
It includes explicit logos, fonts, colors, symbols and sounds
that represent implicit values, ideas and personality.
Unleashing business potential through breakthrough marketing
How do brands create economic value?
By creating value in the minds of
Customers/ consumers
business
potential
through
breakthrough
19 |Unleashing
Brand Strength
workshop
| ING
| 13 December
2013marketing
Brands Affect Market Value
High market value
Above average
operating profit
Strong/clear
positioning
Differentiated
Consistency
over time
Emotional
& Functional
Appeal
Protecting from Price
Demonstrated
Competition
growth and set up
for future growth
Facilitating Purchase
Unleashing business potential through breakthrough marketing
Establishing
Loyalty
Brands simplify selection
Functional
• Ensure
recognition
• Simplify
selection
• Guarantee
origin
• Confirm quality
Unleashing business potential through breakthrough marketing
Emotional
• Reassurance
• Association
• Aspiration
• Self expression
Brands own a point of differentiation
•
Brands distinguish products and gain cut through in the cluttered marketplace
Unleashing business potential through breakthrough marketing
Brands allow a price premium
A brand influences purchase behavior and increases perceived value.
Unleashing business potential through breakthrough marketing
Brands allow a price premium
A brand influences purchase behavior and increases perceived value.
Unleashing business potential through breakthrough marketing
Brands capture & leverage ip rights
Unleashing business potential through breakthrough marketing
Brands create legal barriers to competition
•
•
•
•
•
Names
Colors
Descriptors
Symbols
Sounds
• Smells
• Logotypes
• Domains
• Packaging
• Advertising
Unleashing business potential through breakthrough marketing
Strong brands create value
•
•
•
•
According to the 2019 Interbrand “Best Global Brands by Value” ranking
for example Apple, Google, Amazon and Samsung are among the most
valuable brands
Among car manufacturing brands Mercedes and BMW have entered the
top 20 list following Toyota
CocaCola has kept its place in top 5 and is the only CPG brand in the top
20 list, but it is in a decline from number 3
Disney has entered the top 10 for the first time
Unleashing business potential through breakthrough marketing
Brand Equity for the Owner
Country
Sector
Brand Value
(in $ Billions)
Apple
United States
Technology
$170->$234
2
Google
United States
Technology
$120->$168
3
5
Coca-Cola
United States
Beverages
$78->$63
4
4
Microsoft
United States
Technology
$68->$109
5
12
IBM
United States
Business Services
$65->$40
6
7
Toyota
Japan
Automotive
$49->56
7
6
Samsung
South Korea
Technology
$45->$61
8
19
GE
United States
Diversified
$42->$26
9
9
McDonald's
United States
Restaurants
$40-> $45
10
3
Amazon
United States
Retail
$38->$125
2015 Rank
2019 Rank
1
1
2
Brand
Unleashing business potential through breakthrough marketing
© McGraw-Hill Education
Source: From Interbrand.com, http://interbrand.com/best-brands/best-global-brands/2015/ranking/#?listFormat=ls.
Brands Affect Market Value
High market value
Above average
operating profit
Strong/clear
positioning
Differentiated
Consistency
over time
Emotional
& Functional
Appeal
Protecting from Price
Demonstrated
Competition
growth and set up
for future growth
Facilitating Purchase
Unleashing business potential through breakthrough marketing
Establishing
Loyalty
Brand
Positioning
Unleashing business potential through breakthrough marketing
What is Brand Positioning?
A network of meaningful associations that a brand
occupies in the mind and heart of its Target
Consumer.
It captures and clarifies the way you want consumers
to perceive, think and feel about your brand
Page 21
Unleashing business potential through breakthrough marketing
Strong Brand positioning creates company value
Consistent
Messaging
Breaks
through the
clutter
Willingness to
pay premium
Creates
preference
Loyal
users
Unleashing business potential through breakthrough marketing
High quality
perception
Brand
Love Key
Unleashing business potential through breakthrough marketing
Brand Love Key
BRAND DISCRIMINATOR
BRAND PERSONALITY
The unique differentiator versus competitors
The brand defined in terms of human
characteristics
FUNCTIONAL BENEFITS
EMOTIONAL BENEFITS
The functional benefits answers “what does
the product provide for me?”
The emotional benefits answers “how does
it make me feel?”
SUSTAINABLE LIVING PURPOSE
The positive impact the brand has on others
PEOPLE WE SERVE
Demographic & psychographic description
HUMAN TRUTH
of the target consumer
The universal truth, the human need
Hard evidence to substantiate the brand promise
and
the friction the brand is built on
PRODUCT TRUTH
ROOTS
Internal & external strengths in roots & heritage of the company that have the potential to be leveraged
Unleashing business potential through breakthrough marketing
Roots
•
Unleashing business potential through breakthrough marketing
The most credible and distinctive elements
of a brand’s heritage, provenance, stories,
symbols, and product attributes.
Roots
Unleashing business potential through breakthrough marketing
Roots
Roots
Other examples
1. The mission of the founder
Apple – Never satisfy status of quo, always see things in
a different view. Develop innovative product and service
and believe that it would change the world.
2. What the brand stood for at its peak
Nike –Everybody is an athlete. As long as there’s an
athlete, there’s Nike.
3. A unique and differentiated product
characteristic or property that has lived through
time
Coca Cola glass bottle – Even though you touch the
unique shaped bottle in blind, you can instantly tell this
is from Coca Cola.
Unleashing business potential through breakthrough marketing
People we serve
Demographic & Lifestyle
description of the target consumer
Unleashing business potential through breakthrough marketing
Category
Definition
Unleashing business potential through breakthrough marketing
Category definition
Wide: Lifestyle (i.e. cars, clothing)
strategic
Strategic: Fashion accessories (belt,
wallet, jewellery, etc.)
Narrow: Luggage
Unleashing business potential through breakthrough marketing
Category definition
Going narrow: Considerations
Size of
Prize
•Will you meet your long-term
growth objectives?
Right
to Win
• Do you have a differentiated /
superior product?
Unleashing business potential through breakthrough marketing
Going wide: Considerations
• Can you deliver on the
proposition?
•Do you have the resources?
•Do you have credibility?
Segmetation
Unleashing business potential through breakthrough marketing
Types of segmentation
Category
Variables
Examples
Demographic
segmentation
Age/ Gender
Male, female
Occupation
Blue collar, white collar
Education
High school, graduate
Geographic
segmentation
City/county size
Under 50,000 –100,000, over 1,000,000
Population density
Urban, suburban, rural
Behavioural
segmentation
Benefits sought
Quality, value, taste
Product usage
Heavy, medium, and light users
Occasions or situations
Weddings birthdays, graduation
Personality
Outgoing, shy, compulsive
Lifestyle
Workaholic, couch potato
Motives/ Needs
Safety, relaxation, convenience
Psychographic
segmentation
Unleashing business potential through breakthrough marketing
Segmentation typology
Demographic
Segmentation
Geographic Segmentation
Behavioral Segmentation
Psycographic Segmentation
34
Unleashing business potential through breakthrough marketing
Principles for a Successful Segmentation
Identifiable
Each segment has distinct characteristics and should
be easily identiable
Responsive
The segment should respond to brand’s marketing
efforts
Actionable
Can be targeted, measured and actioned
Size of Prize
Enough volume in each segment to make action
financially viable
Unleashing business potential through breakthrough marketing
Targeting
Strategic
Target
Strategic
Target
Strategic
Target
Category
Strategic
Target
Strategic
Target
Understand what
Category you
compete in
consumer mind?
Cluster consumers into
segments with distinct
characteristicss. Choose
target segment.
Unleashing business potential through breakthrough marketing
Select the Strategic Target for
long term growth by leveraging
segmentation and need states
People we serve- Ikea
Urban Home-Lovers
People who love their homes. They are young at heart with
a love of beautiful things. But beauty is not everything,
function & form are important too.
Unleashing business potential through breakthrough marketing
Human Truth
The universal truth, the human
need and the friction the brand is built on
Unleashing business potential through breakthrough marketing
Human Truth
Human truth
A penetrating discovery about consumer motivations, applied to unlock
growth for the brand
Unleashing business potential through breakthrough marketing
Insight
Unleashing business potential through breakthrough marketing
•
Consumer insights explain why consumers
behave and think as they do, not how they
behave.
•
At this stage we drive for a deeper
understanding as to why consumers choose
and use our brands and categories based on
their beliefs, values and needs.
•
Insights can be uncovered through
continuously asking the question “why?” or
“why is that?” to expose consumer
motivations hidden under the information
available.
What is an insight?
Consumer Behaviour
What you see
Consumer Thoughts and
Feelings
What you don’t see
Insights
What you identify from deep
consumer understanding
Unleashing business potential through breakthrough marketing
Benefits
• A benefit is the promise we make to our consumer
about what our product or brand will do to improve
his or her life. It should always answer the question,
“What’s in it for me?”
Unleashing business potential through breakthrough marketing
Benefit Statement
Functional
Emotional
Societal
• Functional Benefits speak to
the fundamental function or
performance of the product.
They include benefits that
call out superior
performance, improved
performance, and new
combinations of product
performance
• The functional benefits
answers “what does the
product provide for me?”
• Emotional Benefits speak to
a laddered, higher order
result of the performance
benefit. They are used in
conjunction with functional
benefits to increase the
relevance, distinctiveness,
and desirability of the
functional benefit
• The emotional benefits
answers “how does it make
me feel?”
• Societal Benefits speak to
higher order good in the
society addressing some
social issues or try to tackle
some taboos in the society.
• The societal benefits answers
“how does it improve our
society’s life?”
Unleashing business potential through breakthrough marketing
Unleashing business potential through breakthrough marketing
Unleashing business potential through breakthrough marketing
Unleashing business potential through breakthrough marketing
Discriminator
The unique differentiator versus competitors
Unleashing business potential through breakthrough marketing
Key principles of Discriminator
Discriminator
• The single most compelling and competitive reason for the target consumer
to choose the brand
• Makes the product different and more appealing than its competitors
• Can be a benefit, can incorporate a reason to believe, or it can provide an
emotional value
• Must be important in the consumer’s life, credible and different
Unleashing business potential through breakthrough marketing
Example: Discriminator
Affordable style for your
changing life.
Unleashing business potential through breakthrough marketing
Dove is the only brand that promotes
real beauty.
Product truth
•
Hard evidence to substantiate
the brand promise.
If the benefit answers, “What’s in it for me,” the
RTB answers, “Why should I believe you this time?”
Unleashing business potential through breakthrough marketing
Product Truth
Product Truth
• The RTB is where you “engineer in” credibility for the Brand’s discriminator
• The RTB has to support the discriminator
Unleashing business potential through breakthrough marketing
Product Truth
Proof of moisturizing benefit?
Made with
¼
Moisturizing
cream
Unleashing business potential through breakthrough marketing
Product Truth
Proof of stimulation benefit?
MADE WITH
TAURINE
Unleashing business potential through breakthrough marketing
6 Common Sources of RTBs
Product
Process
Scientific Testing
Heritage
Provenance
Endorsement
Unleashing business potential through breakthrough marketing
Personality
The brand defined in terms of
human characteristics
Unleashing business potential through breakthrough marketing
Key principles of Brand Personality
Brand Personality
• Description that the strategic target would give to the brand if it was a person.
• Defining the brand personality helps with setting the tone of voice and look & feel of
your marketing activities.
Unleashing business potential through breakthrough marketing
Personify the Brand
• Some brands actually develop a figure to convey the brand personality
Marlboro Man
Chanel
Masculine, rugged
individualism, independent
spirit
Beautiful, timeless,
elegant
Unleashing business potential through breakthrough marketing
Which Brand Personality Belongs to Whom?
• Coke and Pepsi are both colas with very similar tastes and packaging
• They compete almost solely on brand personality
Coke:
Goodwill ambassador,
traditional, authentic
Unleashing business potential through breakthrough marketing
Pepsi:
Young, hip, irreverent,
active
Purpose
Brand’s contribution to the world
Why Do I exist?
Written as ‘Exists to...’
Unleashing business potential through breakthrough marketing
Purpose
“Increasingly, consumers are looking for solutions to their anxieties about
making the globalized world a better place. In a world full of confusion,
they search for companies that address their deepest needs for social,
economic, and environmental justice in their mission, vision, and values.
They look for not only functional and emotional fulfillment but also
human spirit fulfillment in the products and services they choose. “
-
Philip Kotler “Marketing 3.0: From Products to Customers to the Human Spirit”
Unleashing business potential through breakthrough marketing
Purpose
Societal
Emotional
Functional
Unleashing business potential through breakthrough marketing
4
STRATEGY
Brand Portfolio Design and Strategy
Purpose
Exists to…
Celebrate every
woman’s unique
beauty
Empower creative
exploration and
self expression
Celebrate journeys of
progress and success
Unleashing business potential through breakthrough marketing
Innovate and inspire:
Everyone is an athlete
Celebrate progress
through
technology
Inspire moments
of happiness
Immediately
satisfy every
curiosity
Apple Brand Love Key
BRAND DISCRIMINATOR
It’s a Lifestyle
FUNCTIONAL BENEFITS
Life altering technology that’s
profoundly simple and iconic
which Inspires my own
imagination, the way I express
myself.
BRAND PERSONALITY
Cool, fun, creative, cutting edge, engaging,
imaginative.
SUSTAINABLE LIVING PURPOSE
Think different: unleashing creativity
PEOPLE WE SERVE
Youth. People who believe
in self expression and
PRODUCT TRUTH
individuality
Visionary innovation, design aesthetic, apps,
EMOTIONAL BENEFITS
Being at my best is being able to
express who I am. My electronics
and entertainment
play an important part in this.
HUMAN TRUTH
ROOTS
Macintosh, “1984”, anti-establishment, brand fanatics , Steve Jobs
Unleashing business potential through breakthrough marketing
Unleashing business potential through breakthrough marketing
Unleashing business potential through breakthrough marketing
NEW BRAND LOVE KEY
BRAND DISCRIMINATOR
BRAND PERSONALITY
Only Magnum inspires me to let go
and courageously seize superior pleasure
Sophisticated, Confident, Self
assured, Spontaneous, Playful,
Courageous, Flirty,Open-minded,
Stylish, Bold
FUNCTIONAL BENEFITS
EMOTIONAL BENEFITS
Crack the perfect balance of the
highest quality
chocolate and
Fulfils my desire to experience
superior pleasure
Makes me feel special and rewarded
Feeling the pleasure of liberation
SUSTAINABLE LIVING PURPOSE
ice cream pleasure
Inspire Pleasure Seekers to overcome
fear of judgement and be true to superior pleasure
PRODUCT TRUTH
True authentic pleasure so good
it’s worth letting go for
PEOPLE WE SERVE
Pleasure seekers
HUMAN TRUTH
There are times when I feel held back
from enjoying pleasure fully because
of the fear of being judged by others
ROOTS
The creator of the most premium adult ice cream and chocolate pleasure on a stick, a personal indulgence ritual
Magnum has always believed a day without pleasure is a day lost
Unleashing business potential through breakthrough marketing