Session 1: What's a Brand - Brand Audit PDF

The challenge of branding SESSION 1: What´s a brand? Is it a brand important? How to do a Brand Audit? 1. The importance of brands 1. We are not in time of changes. We are in the era of changes. Nothing remains forever: trends, tastes, technology, economics, legislation and competitiveness .....

The challenge of branding SESSION 1: What´s a brand? Is it a brand important? How to do a Brand Audit? 1. The importance of brands 1. We are not in time of changes. We are in the era of changes. Nothing remains forever: trends, tastes, technology, economics, legislation and competitiveness ... everything changes all the time. 40% of CEOs say that they are very worried about geopolitical uncertainty and 38% about the speed of technological changes that affect their companies *. Source: PwC, 21st Annual Global CEO Survey We are not in time of changes. We are in the era of changes. Proliferation of information, messages.. And the environment, besides changing, is increasingly complex and competitive. Pressures to diversity. Pressures generated by short-terms. A powerful client. Any company information with just one click. We are in the middle of the perfect storm. And brands are tools that can help us to adapt. But what is really a brand? Much more than a logo (Iceberg metaphor) “It is the perception of a person about a product, an organization, another person or an experience” THE DICTIONARY OF BRAND, AIGA PRESS, NY It is an important and valuable asset • It is an intangible, present in the agenda of all kinds of institutions, organizations and companies, so they are not exclusive patrimony of companies anymore. • Even people at individual level manage the image they show in an increasingly professional way. However, in the B2B environment it is often underestimated Kotler says that companies that serve the business market underestimate the power of the name and its image and use to make an insufficient investment in Brand. Why is a Brand so important? Help to align business reality and brand perception ü To avoid dissapointments ü To loose opportunities Business reality = Brand image Help to attract and retain the best talent. ü To understand what the Company stands for ü To better allign their work with the Business objectives ü To be motivated "More than twice af the employees are more motivated by a passion for work than by career ambition, indicating a need to ensure an attractive and enjoyable work environment for all." 87% of organizations appoints culture and commitment as one of their main challenges Talent trends , Deloitte University Press. They facilitate memories It has never been so complex throughout the history to break through in the mind of the target audience. An ordinary citizen receives approx. 3,500 * brand impacts per day and our attention window is 8 seconds. The coherence and consistency of the brands promote memory. *Source:Univesal media (McCann Worldgroup) Build reputation and trust We live in a time when skepticism and uncertainty prevail. The lack of confidence is present in the automotive sector, where the concern of customers translates into a growing demand in terms of image and reputation to suppliers. Brands generate trust, legitimize the decision maker, and minimize the perceived risk. Brands impact on the demand´s curve Help to build a story and this is the link between brands and communication Behind every brand there is a story. And a team of people. And a good story is key to have a memorable brand: having a story helps to connect with people, allows you to make the complicated situations simpler and facilitates communication. Beth Comstock, Vice Chair GE Today, a brand is what a brand does. The value of a brand ultimately lies in its utility – that it is useful in resolving tensions presented by changes in your industry and is an effective tool in taking advantages of new opportunities that may arise. • Changes in the economy, demographics and our technological landscape mean that any industry of tomorrow will look very different to today in terms of its role in society, the services it delivers and how these services are experienced. Future brands are driven by both purpose and experience – an apt lens to delve into any industry and show how brands can help you not just stay relevant but create the future. The brand is a valuable asset that affect to many activities FUNCTIONS OF BRANDS FOR CONSUMERS: CONFIDENCE & TIME-EFFICIENCY ■ INFORMATION: “Brands make it easier for consumers”, conveying an expectation of quality and offering help and support to make purchase decisions. ■ CONFIDENCE: Minimization of purchasing risk -> trust-based relationship ■ SATISFACTION: It’s key to deliver expectations ■ IDENTIFICATION: Consuming certain brands is also a means of communicating certain values or sense of membership (sometimes), especially premium brands-> “Badges” FOR THE COMPANY: LOYALTY AND MARGIN ■ CONSUMER LOYALTY, decreasing the product price elasticity and therefore increasing the product margins ■ OPPORTUNITIES FOR BRAND EXTENSIONS & GEO-EXPANSIONS: Once you have brand credential, you can “stretch” to other products or countries ■ COMPETITIVE ADVANTAGE: It protects the products (Trademarks) and suppose a strong advantage versus competitors. ■ BENEFITS FOR THE TRADE: They know the brands and products and can estimate the demand/rotation on shelves. COMPANY-CENTRIC INNOVATION (just internal analysis -> Myopia ) CONVINCE USER-CENTRIC (External & Internal analysis, with focus in users) CONNECT To be right, we have to do a Brand Audit!!!! Our aim is that the Brand strategy should be always at the service of Business strategy Business Strategy Brand Strategy Brand creation Marketing P&S Internal Comms External Comms When or why, do we do a Brand Audit? A brand audit provides valuable insights for several situations. In fact, you shouldn’t make any significant brand strategy moves without the audit of any existing brand. The critical point of the Brand Audit is to identify areas to possibly steal a march on other brands within the competitive marketplace. Brand audit insights help you better understand your target audience or new market, or help you see a market gap. When is a brand audit needed? • • • • • • • When considering rebranding or a brand refresh If you need proof for a rebrand During a rebrand to determine direction When expanding into a new market When you need to find an angle to differentiate a brand When shifting the target audience If undergoing a merger or acquisition Brand Audit FRAMEWORK: 4 areas to analyse TRENDS & CONTEXT: What’s happening around? CONSUMER & USERS What are my consumers and potential consumers doing, thinking and feeling? MARKET & COMPETITORS: What are the others doing? COMPANY STRATEGY: Strenghts & weakness. Where are we addressing now? (strategy & objectives). Overall trends https://www2.deloitte.com/us/en/insights/topics/marketing-and-salesoperations/global-marketing-trends.html Brand Audit FRAMEWORK: 4 areas to analyse TRENDS & CONTEXT: What’s happening around? CONSUMER & USERS What are my consumers and potential consumers doing, thinking and feeling? MARKET & COMPETITORS: What are the others doing? COMPANY STRATEGY: Strenghts & weakness. Where are we addressing now? (strategy & objectives). Brand Audit FRAMEWORK: Consumer QUALITATIVE Explore: Why/What For Indepth understanding Find opportunities Not Representative Methodologies: Focus groups, in-depth interviews, ethnography, observation, diaries,... QUANTITATIVE Validate Measure Representative (sample) Methodologies: Surveys Brand Audit FRAMEWORK: 4 areas to analyse TRENDS & CONTEXT: What’s happening around? CONSUMER & USERS What are my consumers and potential consumers doing, thinking and feeling? MARKET & COMPETITORS: What are the others doing? COMPANY STRATEGY: Strenghts & weakness. Where are we addressing now? (strategy & objectives). Brand Audit FRAMEWORK: MARKET & COMPETITORS - • Market/category Growth • Brands Market shares and evolution • Distribution • Prices • Promotions • …. Sport efficiency + + Trendy design - Brand Audit FRAMEWORK: 4 areas to analyse TRENDS & CONTEXT: What’s happening around? CONSUMER & USERS What are my consumers and potential consumers doing, thinking and feeling? MARKET & COMPETITORS: What are the others doing? COMPANY STRATEGY: Strenghts & weakness. Where are we addressing now? (strategy & objectives). Brand Audit FRAMEWORK: COMPANY STRATEGY What’s working? STRENGHTS What’s not working? WEAKNESSES Key learnings from the Brand and communications Audit will be the base for you work on Brand and communication strategy 34 APPENDIX WITH AN EXAMPLE OF A B2B TELECOM BRAND* * Name can not be disclosed due to confidentiality reasons. The example illustrate real Brand audit analysis Illustrative example Market analysis Newco Audit | Sincerely | December 2019 36 Analysis approach Market Players Trends Workshop Newco Audit | Sincerely | December 2019 37 Analysis approach Analysis of maket players Current and future market trends analysis: Sources of B2B trends: • Gartner • Kantar • Forrester • Harvard Business Publishing • EuroForum 2018 • CMIOnline Sources of Telecom trends: • Accenture • CyberSecurityVentures • News sources Telefónica Lyntia Reintel CityFibre Market Players Trends Workshop Workshop key learnings: Activities carried out: • Activity 1: Purpose • Activity 2: Brand Values • Activity 3: Naming Newco Audit | Sincerely | December 2019 38 Why is branding so necessary for B2B businesses?? #3 According to McKinsey, brand is the 3rd most important purchasing factor in the B2B environment, ahead of sales figures and information. A strong brand contributes to better hiring and retention of employees, and enables your workforce to speak with one voice, becoming powerful ambassadors for your business. Brands support reputation and create confidence in companies. They help customers legitimise their decisions, generate empathy, help to differentiate, and minimise perceived risk. Source: Forrester, Hays, McKinsey, The Economist Newco Audit | Sincerely | December 2019 39 Industry trends Newco Audit | Sincerely | December 2019 40 Let’s identify and define the future trends of the B2B sector that will help us in guiding Newco’s brand strategy. In order to do so, we have carried out two analyses: • A study of global trends within the B2B sector. • Future trends in the telecommunications industry that will shape companies’ communication strategies. Newco Audit | Sincerely | December 2019 41 We have shifted from B2C and B2B to B2H “It’s all about people” The customers of today and tomorrow want brands to approach them as people, and connect with them on an emotional level. They look for brands that share their personality, values, and ways of thinking and behaving. Source: Euroforum 2018 Fuente: Quote de Larry Ellison, Fundador de Oracle . www.forbes.com Newco Audit | Sincerely | December 2019 4 42 Emotions can drive B2B buying The transition to B2H means that rational decision-factors are ever less important when deciding on a service provider, and maintaining the relationship in the long term. It has never been harder to obtain loyal customers. With an optimised brand strategy, loyal customers become ambassadors of your brand and communicate your brand values to others by word of mouth. How emotion influences B2B buying: Business Value VS Personal Value 48% of B2B customers say they have wanted to 2x buy new solution but haven’t spoken up for fear of risks. 74% of B2B buyers see a business value when purchasing. Just 14% of B2B buyers perceive real difference in B2B supplier offerings. Personal value has 2x as much impact as business value does. 68% of buyers who see a personal value will pay a higher price for a service. 8% of buyers who see NO personal value will pay for a higher price for a product. 31% of prospective customers think B2B brands 71% of buyers who see personal value will provide a personal value. purchase a product. Source: “From promotion to emotion” CEB Marketing Leadership Council, Gartner Newco Audit | Sincerely | December 2019 43 Simplicity In their daily lives, people receive up to 3,000 brand impacts per day, and end up remembering between 1 and 2 of them. For this reason, simplicity is an all-encompassing trend that touches almost every sector and industry – especially those that are more complex and difficult to grasp, and would benefit immensely from a process of rationalisation and simplification. Source: Kantar Consulting. Forrester 4 Newco Audit | Sincerely | December 2019 44 The future of B2B brands is… Flexible & Practical Whatever, wherever and whenever. Time means money. We’re no longer just looking to save time, we´re actually prepared to pay for more. The demand has never been higher for brands to be always-on, always available and at our fingertips. Source: Kantar Consulting. Forrester Newco Audit | Sincerely | December 2019 45 We also detected trends which relate directly to the telecommunications sector: Newco Audit | Sincerely | December 2019 46 An emotional industry In Spain, 19.4% of all registered complaints are directed to telecommunications companies, making it the 2nd most complained about industry by end consumers. Conversely, the arrival of fibre-optic technology to new areas, especially rural ones has seen immensely positive emotional responses to brands due to its power to transform digital lives. Source: El Español, El País Newco Audit | Sincerely | December 2019 47 Security first With the cost of cyber crime and data breaches expected to reach $6 trillion by 2021, security is a universal B2B selling point in the IT sector. Companies such as Facebook and Google are already using dark fibre networks for secure and fast transfers, and security is projected to be ever more important in telecommunications for public sector data infrastructure. Source: Cyber Security Ventures Newco Audit | Sincerely | December 2019 48 A raft of neutral players The rise of fibre-optic redundancy is leading to a democratisation of access, and as a result, brands are leveraging their independence and neutrality to appeal to the flexibility of the market. Newco Audit | Sincerely | December 2019 49 Analysis of market players Newco Audit | Sincerely | December 2019 50 In selecting the brands to be analysed, we first mapped out the competitive landscape in terms of wholesale and retail fibre providers. Our choice centres around using brands that can either serve as a reference in order to inspire the development of a uniquely positioned brand, and more concrete competition, informing us about the competitive landscape in which the brand will operate. Newco Audit | Sincerely | December 2019 51 Brands analysed Newco Audit | Sincerely | December 2019 52 Methodology We have carried out a brand analysis from four key perspectives in order to understand brand DNA and gain insights which apply to Newco. Positioning and Brand Values Newco Audit | Sincerely | December 2019 Naming Identity Communications 53 Telefónica Newco Audit | Sincerely | December 2019 54 Quadrant Telefónica Model 1. Positioning Connecting your world Making the world more human • Telefónica’s global purpose is to make the world more human, and to connect people’s lives. • In an explicitly B2B setting, Telefónica is positioned along the lines of connection, quality, and problem solving. • Telefónica leverages its history and dominant position in the Spanish market to also position itself as a thought-leader and solution expert in the field. • While all wholesale cable services are dealt with through the Telefónica brand, the company has also created Telxius to offer long-distance telecommunications solutions. • Values: Openness, Boldness, Trust. Newco Audit | Sincerely | December 2019 55 Quadrant Telefónica Model 2. Naming A neutral parent brand • A descriptive name, shortened historically from “Compañía Telefónica Nacional de España” • Firmly rooted in telephony: the name has strong historic institutional connotations in Spain – transmits key information about the company’s operations. • Does not match with the company’s stated purpose of “making the world more human”, does aid in communicating transparency and straightforwardness. • For this reason, Telefónica has developed brand architecture with brands such as Movistar to communicate mobility, O2 to engage customers in a more aspirational sense. Newco Audit | Sincerely | December 2019 Quadrant Telefónica Model 3. Identity Corporate, trustworthy, efficient. • Telefónica has an ageing identity, however it is one that is readily recognised inside Spain, due to its long presence in the market. • Telefónica’s corporate colours are blue and green, a strong indicator of an incumbent leader in the category, trust, integrity and efficiency. • The visual universe of the brand centres around networks, connection, technology, people, leadership and professionalism. Newco Audit | Sincerely | December 2019 Quadrant Telefónica Model 4. Communications 360º focus on impact and reputation • Telefónica’s communications centre around the wider relevance of its activities, and its positive impact in the world. • Communications are put to work defending Telefónica’s reputation and positioning as a leading business, with insights into efficient management and showcasing of business awards. • Telefónica also heavily emphasises its technological feats and compromises with society at the level of environment, equality and social justice. • Telefónica separates its communication efforts into channels, for B2C, B2B, CSR etc. allowing it to tailor massaging correctly for each audience. Newco Audit | Sincerely | December 2019 58 Most competitors have very similar positioning to each other. They focus on who they are and how they do it. Telefónica has the most differential and most emotional purpose centered on why it exists. “The largest neutral operator of fiber optic infrastructure in Spain” Their pillars: neutrality, customer focus, excellence and experience. Tangible /Rational What are we? (products&services) Newco Audit | Sincerely | December 2019 UK’s largest alternative provider of fibre optic services, leading to associations with agility, performance and flexibility. Network to business: “the neutral operator of reference which makes communications possible, simple and secure". “make the world more human,” and “connect people’s lives” Intangible /Emotional How do we do it? (skills and focus) Who we are? (Personality and attitude) Why do we do it? (purpose) 59 Session 1 Teamwork 1. Each team has to choose a Corporate Brand with products and services and a country. This brand will be used along the following sessions. • Use the list of Top 100 best global brands (InterBrand) and it must be a brand you have experienced https://interbrand.com/best-brands/ • The Brand should be chosen by the end of class today and no overlapping between brands. 2. First work to be done: a Brand Audit, where the sticker is shown. Due date: Before session 8, the last one. Thanks for your time