Unleashing the power of brands
Strategic Brand Management by Roland Berger
Sneak Preview
Roland Berger
Strategic Brand Development Group
Beijing, New York, Munich, July 2004
1
A brand strategy must result in a conclusive, focused and efficient
marketing mix – and must be economically viable
Strategic Brand Management by Roland Berger
What is the "actual" position of a brand from the people's perspective?
i.e. what are the brand's Actual Value Perception, Projection, Delimiter in the competitive environment
What "ideal" target position should the brand take in the competitive environment?
i.e. the optimal Target Value Proposition and Target Segment that is strategically differentiated from the competition
What is the most effective brand strategy to reach the "ideal" brand position?
i.e. the Road Map to Target Value Proposition, including mile stones from actual to target position of a brand
What are corresponding measurements for the entire marketing mix?
i.e. the detailed action plan for a consistent adaptation of the entire marketing mix
What are the costs involved and what is the impact on the business plan?
i.e. the cost of re-positioning and effect of brand strategy on revenues, margin and profitability
Source: Roland Berger- Strategic Brand Development Group
2
The Roland Berger philosophy of brands reverses conventional
wisdom
Roland Berger philosophy
Conventional wisdom
'Product'
'Product'
Marketing mix
Marketing mix
defines
influences
recruits
defines
is sold to
Consumer
Brand
boosts sales
Inside
People
Brand
defines
Outside
Product-driven brand philosophy
Companies produce products …
Source: Roland Berger- Strategic Brand Development Group
Inside
Outside
People-driven brand philosophy
People buy brands …
3
The more a person's value system matches a brand's perceived value
system, the more likely a decision to consume will be made
Shared values
Buying decision
for or against a brand
Moments
of truth
Personal
value system
VS
VP
Brand value
propositions
Brand name, symbols
Marketing mix (all 4 P's)
Brand user community
Requirements, desires
Behaviour
Perception
The consumer 'tests' the projections/
promises of a brand and creates/adjusts
the brand‘s perception in his or her mind
Projection
Consumer tries to understand the value proposition
of a brand as it 'appears' through the marketing mix
and the stereo type of the brand user community
Shared values 1)
Consumer assesses compliance
of perceived value propositions
with his or her own value system
1) the more perceived value propositions of a brand match with a consumer‘s value system, the more likely is his or her buying of the brand
Source: Roland Berger, William Shakespeare
4
Paul's value system includes progressive performance orientations,
is not hedonistic, rejects altruism and shows some luxury tendencies
E
E-
'Paul'
ICP – Individual Consumer Profile
(ID 0335) Level 1
RED
RED ==
Consumer
Consumer values
values
that
that the
the individual
individual
disagrees
disagrees with
with
i.e.
'dislikes,
i.e. 'dislikes, aversions'
aversions'
Passion
Fair
Level 2
Disagreement
E+
Thrill&Fun
Vitality
Nature
Purism
Classic
Carefree
Clanning
Tranquil
Service
• 25 year old
• Male
• Single
• Medium income
• Medium education
• Fulltime working
• 4 person household
Smart
Shopping
BLUE
BLUE ==
Consumer
Consumer values
values
that
that the
the individual
individual
agrees
agrees with
with
i.e.
i.e. 'likes'
'likes'
Legend
New&Cool
24/7
Protech
Quality
Personal
Efficiency
Fair
ERE0
R0
E+
R+
Midfield area,
high degree of consensus
Level 1
Agreement
Pro-Value
Anti-Value, Demarcation
Proven
Total Cost
R-
Customized
R
R+
Consumer value
Altruism
Minimalism
Traditional hedonism
Traditional performance
Progressive hedonism
Progressive performance
!
Source: Roland Berger - Strategic Brand Development Group, TNS Data (Germany, March 2002, n=1.500, Population 14-65 yrs., CATI)
Warning, too weak,
should be more intense
Warning, too much,
should be less intense
Conflict with other value
5
Pauls's value system includes progressive performance orientations,
is not hedonistic, rejects altruism and shows some luxury tendencies
Pro-Service
Pro-Quality
Anti-Nature
Anti-Classic
Anti-TotalCost
Pro-Protech
Pro-Customized
E
+
R
–
Source: Roland Berger - Strategic Brand Development Group, TNS Data (Germany, March 2002, n=1.500, Population 14-65 yrs., CATI)
6
Roland Berger has identified a number of typical value-demographic®
consumer segments in China – the Archetypes
Chinese Archetypes (Big City Metropolitan Area)
Traditionalists
Traditionalists
Progres.
Progres.
Maximal.
6%
Maximal.
7%
Selfcentered
29
8%
9%
14
Traditional
Maximalists
Modern
Modern
Performer
Performer
Emotional.
Emotional.
12
13%
Minimalists
Conformists
Source: Roland Berger - Strategic Brand Development Group, Gallup/ Data (China, Nov2001/Dec2003, n=5.600/3.800, Population yrs., CATI)
7
Maximalists and Modern Performer are the economically most relevant
segments for luxury goods in China
Chinese
Archetypes
Progressive Traditional
Maximalists Maximalists
Modern
Performer
Self-centered
Traditional
Conformists
Emotional
Minimalists
Values
Size
7%
8%
14%
10%
8%
13%
29%
9%
6%
21%
13%
11%
9%
-
12%
8%
Very High
Very Low
Very High
Medium
Medium
High
Medium
Very Low
High
Very High
Low
High
Medium
Low
Very Low
Very High
Very high
High
Very high
Medium
High
Low
Low
Very Low
110
46
162
63
43
90
1
-
7
-
6
-
1.
2.
3.
6.
7.
8.
Big
Big City
City Standard
Standard
Costal
Costal Area
Area Standard
Standard
Consumption
Spending
Spending
Saving
Saving
Affinity1)
Index
Index 11
Index
Index 22
Economic
Relevance1)
64
11
43
Decreasing Economic Relevance
4.
5.
1.) for luxury goods in China
Source: Roland Berger - Strategic Brand Development Group, Gallup/ Data (China, Nov2001/Dec2003, n=5.600/3.800, Population yrs., CATI)
8
While 'Paul' drives a BMW – he would probably not read the
National Geographic magazine
BMW
'Paul'
National Geographic
AVP (109 vs. 1.391; zmax=12.7)
ICP (#0335; zmax= 5)
AVP (155 vs. 1.358; zmax=12.7)
E
E-
E+
Thrill&Fun
Thrill&Fun
Passion
Passion
Fair
Fair
Vitality
Vitality
Nature
Nature
Classic
Classic
Tranquil
Tranquil
Carefree
Carefree
Clanning
Clanning New&Cool
New&Cool
Purism
Purism
E
E-
Quality
Quality
Proven
Proven
Total
Total Cost
Cost
R-
Vitality
Vitality
Nature
Nature
Classic
Classic
Tranquil
Tranquil
Carefree
Carefree
Clanning
Clanning New&Cool
New&Cool
Purism
Purism
E
E-
Smart
Smart
Shopping
Shopping
Personal
Personal
Efficiency
Efficiency
R+
Quality
Quality
Proven
Proven
Total
Total Cost
Cost
R-
Thrill&Fun
Thrill&Fun
Vitality
Vitality
Nature
Nature
Classic
Classic
Tranquil
Tranquil
Carefree
Carefree
Clanning
Clanning New&Cool
New&Cool
Purism
Purism
Service
Service
24/7
24/7
Protech
Protech
Smart
Smart
Shopping
Shopping
Personal
Personal
Efficiency
Efficiency
Customized
Customized
R
E+
Passion
Passion
Fair
Fair
Service
Service
24/7
24/7
Protech
Protech
Customized
Customized
R
Thrill&Fun
Thrill&Fun
Passion
Passion
Fair
Fair
Service
Service
Smart
Smart
Shopping
Shopping
E+
R+
Quality
Quality
Proven
Proven
Total
Total Cost
Cost
R-
Source: Roland Berger - Strategic Brand Development Group, TNS Data (Germany, March 2002, n=1.500, Population 14-65 yrs., CATI)
24/7
24/7
Protech
Protech
Personal
Personal
Efficiency
Efficiency
Customized
Customized
R
R+
9
The value projection of the Deutsche Bank combines progressive
performance and traditional hedonism in a maximalistic way
Deutsche Bank – A Passion to perform
• Everyday you
challenge the
status quo …
• A person with his
jacket over his
shoulder is looking
to the event horizon
while traffic is
passing in the
background in fast
motion suggesting
time stands still
while he is looking
into the future
• Aiming higher …
• A capable person
writes advanced
math on a glass
board
• A person with grey
hair in a business
suit and sunglasses
is dancing
expressively on
a terrace
• Breaking new
ground …
• A cinematographer
gets an imagination
of her next shooting
• An engineer is
looking at a
miniature model
of a new car
• You demand more
…
• A person is
passionately playing
an invisible violin in
his messy office
Source: Roland Berger - Strategic Brand Development Group, PVP Assessment Panel China
• And Deutsche
Bank shares your
passion, aiming
higher … pushing
harder
• Airborne view to the
Hi-tech building of
the Deutsche Bank
in Frankfurt,
Germany
• People are engaged
in an thorough
discussion, one
appears to be very
convincing
• That is why the
world's most
demanding clients
trust Deutsche
Bank …
• Deutsche Bank, a
passion to perform!
• A person runs fast
through offices,
takes two stairs at
once
• People celebrating
success
10
The Deutsche Bank tries to reverse it's traditional performance image
by actively addressing Progressive Maximalists and Modern Performer
Deutsche Bank
A passion to perform
PVP of Advertising
Attracted
PVP of Outlet
Distracted
0
PMA
Progressive
Maximalists
TMA
Traditional
Maximalists
MPE
Modern
Performer
Decreasing Economic Relevance
TRA
SEL
Self-centered
Traditional
Source: Roland Berger - Strategic Brand Development Group, Simulation
CON
Conformists
EMO
Emotional
MIN
Minimalists
11
Roland Berger has developed a unique 'platform' – the rb Profiler –
for the entire strategic brand development process
Actual
Brand Sway
Target
Value Perception
Past Projection
Value Proposition
Diagnosis tool
People
B
6
–
+
Competition
R
Translate brand sway into
'rb Profiler-Language'
Source: Roland Berger - Strategic Brand Development Group
Features & Design
Price
E
–
AVP
C
8
+
Retail channel & Point of Sales
1
Archetype Segments
Brand Position
Competitor's Positions
Step 11 Step
Step 22 Step
Step 33 ++ -Strategy Step
Option I
Option II
Option III
Calculation scheme
Place
2
D
Detailed Action Plan
3
A
7
Execution
Product
E
TVP
PVP
!
Q
Controlling tool
4
5
Marketing Mix
• Product, Packaging
• Price
• Place, POS
• Promotion, Pull/ Push
Road map to Target
Strategy tool
"Battle Field"
E
• Market driver, trends
Strategy
R
Promotion
Campaign & Media channel
Translate brand strategy into
Marketing-Mix
12
Roland Berger's Strategic Brand Development Group consists of highly
skilled professionals striving to solve branding issues around the globe
• An interdisciplinary team of 25 seasoned experts dedicated to Strategic Brand
Management and Advanced Consumer Research; extended team accounts
for 55 strategists
• A team of rich diversity and capability, ranging from philosophy and psychology to
statistical science and strategic planning … combining, bridging and integrating
qualitative and quantitative aspects of the same matter
• A full scale statistical science & processing center
• Spending considerable amount of revenues on ongoing Research & Development
• Global reach with projects in Europe, China, Japan, Brazil, Mexico, United States
• Serving world class clients such as Bayer, Clinique, Coca-Cola, Estée Lauder,
General Motors, Mercedes-Benz, MasterCard, Vodafone, Marks & Spencer
• Successfully completed more than 80 brand strategy projects in the last 5 years
• Publishing in leading management magazines such as Harvard Business Review
• Operating from New York, Beijing and Munich
Source: Roland Berger - Strategic Brand Development Group
13
Some of the most dynamic and successful corporations worldwide
use Strategic Brand Management by Roland Berger
•
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