The Challenge of Branding 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 shortterms. 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  To avoid dissapointments  To loose opportunities Business reality = Brand image Help to attract and retain the best talent.  To understand what the Company stands for  To better allign their work with the Business objectives  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 2x wanted to buy new solution but haven’t spoken up for fear of risks. 74% of B2B buyers see a business value when purchasing. 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. Just 14% of B2B buyers perceive 8% of buyers who see NO personal real difference in B2B supplier offerings. value will pay for a higher price for a product. 31% of prospective customers think B2B brands 71% of buyers who see personal value provide a personal value. will 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 allencompassing 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. Newco Audit | Sincerely | December 2019 Source: Cyber Security Ventures 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. Tangible /Rational “The largest neutral operator of fiber optic infrastructure in Spain” Their pillars: neutrality, customer focus, excellence and experience. What are we? (products&services) Newco Audit | Sincerely | December 2019 How do we do it? (skills and focus) 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". Who we are? (Personality and attitude) “make the world more human,” and “connect people’s lives” Intangible /Emotional 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 The challenge of branding and communication "How to build a Brand Strategy” Purpose 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. Has a compelling vision for the future Redefines the category Delivers sustainable business value Experience 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. Builds a strong emotional bond Creates connected experiences across touchpoints Makes people’s lives better 2 CORPORATE BRANDING Corporate Branding is an act of using the brand name of the company in the overall advertising efforts and all the communication to the stakeholders. It is the intangible attitude and spirit behind the company that gives it a distinguishing identity in the industry and in the minds of consumers. It is the much broader concept as compared to promoting the products and services of the company. Source: Marketing91 3 Vision and Mission or Purpose How to build a Vision that works? "It's a mental picture of the future." Objective: The objective is to excite and motivate all the members of the company, showing the direction and way to follow to achieve the business objectives of the company. Core Target: It must always be designed for internal audiences. You must lead and guide employees. Content: Features: It should describe what we aspire to achieve, the ultimate goal of the company, but without specifying how or the means to achieve it.. It should be short and aspirational, it is advisable to use a clear, simple and direct language that allows us to have a short and easy to remember vision. It must include all the participants and think about the future. Characteristics of a Corporate Vision. 1. Realistic. It must reflect what we want to achieve but within what is achievable 2. Credible according to the reality of the company. 3. 4 5. Inspiring It must be attractive and motivating, since it has to make all the members of the company want to be part of that common future. . Looking to the future. It must reflect what we want to be and not what we already are. Simple. It must be something simple and easy to understand by all audiences. How to build a Mission that works? "It is the reason why we exist and what we do to achieve the Vision" Objective: Core Target: Content: Features: A roadmap for the entire organization, with a greater level of detail than the vision but without going into the detail of a plan. It should describe how each of us can contribute to reach the ultimate goal defined by the vision, defining the how in broad strokes. It must be designed for all target audiences, all are necessary to make it a reality. It must be short, clear and aspirational, it must put everyone in action and with a clear objective in the medium term. Characteristics of a Corporate Mission 1. 2. Simple: everyone has to understand it. Focused on our competitive advantage, it must be built on the fact that it differentiates us from other competitors. 3. Relevant, for all audiences. Everyone should feel identified with the mission and see how they are an important part of achieving it.. 4. Credible, achievable according to the resources and the reality of the company and relevant within its scope of action. Cultural understanding is key to develop your BRAND PURPOSE Cultural understanding is key to develop your BRAND PURPOSE “Brand purpose represents your reason for being and what you stand for above all else. It’s often referred to as your North Star or your Noble Purpose,” says Raphael Bemporad, founding partner of BBMG, the branding firm behind the report Brand Purpose in Divided Times. Finding your “North Star” is the core of your brand purpose. But it’s also about how you can use that North Star to better serve your customers—and the community at large. “At BBMG, we believe brand purpose lives at the intersection of a company’s authentic reason for being and the unmet human needs that it can uniquely fulfill in the marketplace and the world,” says Bemporad. “We think holistically about brand purpose to represent how you create value for every stakeholder that touches your brand—your customers, employees, community members, partners, shareholders and the planet we share—so that we all can thrive together.” Source: canva.com GOLDEN CIRCLE PEOPLE DON’T BUY WHAT YOU DO, THEY BUY WHY YOU DO IT • WHY do you do what you do?: Your Purpose. • HOW do you do it? Your Process • WHAT do you do? Your result EMOTIONAL/FEELINGS (Connection with beliefs “We buy what we believe in”) RATIONAL/TANGIBLE (It should explain what and how you’re delivering with this purpose) TED TALK : https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_ac tion?language=es https://www.youtube.com/watch?v=o9l9UiIR26Y How to mobilize all stakeholders in pursuit of the company´s purpose Revenue/ Profit Brand Strategy Create a differential promise, values, positioning and a claim 4 LEVELS OF BRAND STRATEGY Marketin g CEO & St eering c ommite e 17 The promise of brand is the place that the brand occupies in the mind of its target audience, that central idea and those values that we associate with a brand. It must respond to four requirements: relevant, differential, credible and durable. 18 18 Brand strategy: The five elements Brand personality is usually defined with the brand agency; tone, brand as a person. We will not cover it in our sessions Purpose Why you´re here Positioning Values What you offer How you behave Personality Arquitecture How you are How you are 19 Brand Purpose The brand’s reason for existing, the 'why' which guides decisions To make everybody an athlete To empower creative expression Brand Values The distinguishing attributes which guide our activities. Differential values contribute to achieve the desired reputation The starting point to understand, from the point of view of the brand strategy, how the sector is configured, is to analyze the corporate values that the different competitors are transmitting to the market. ¿? In this way we can detect those values that, being present in all competitors, have become basic for consumers, and identify opportunities for differentiation. For ex: Fresh meat company competes in a sector with scarce differentiation where competitors share their discourse at the level of brand strategy. SPIKE: Generate a differential experience in the public Effort Attitude Diversity Entrepreneurship VALUED: Human talent Relevant to the public, but not enough to differentiate Experience Trust Servicio al cliente Commitment Quality of life RSC Rentabilidad Quality Innovation Price BASICS: Necessary to compete in the category 21 22 It is important to appropriate some differential attributes that help create value for the business Happiness Indulgence Explore Challenge Create Brand Positioning: They four keys A strategically valuable, distinctive and ownable territory in the market which guides and shapes brand expression and activities. Territory Functional benefit Reason why Emotional benefit this is the space the brand seeks to own in the competitive landscape, its Unique Selling Proposition. this is the key benefit the brand will offer to its stakeholders, in the context of its category. these are the unique characteristics the company has that allow it to offer the brand promise with credibility. this is the end-user benefit, at a personal and emotional level that the brand promise ultimately delivers. 25 26 Once populated, this model acts as a platform for cultural change, brand architecture and creative expression. It should be equally applicable across customers, investors, employees and society. PURPOSE Why you’re here Customers Why should I buy from you? The motivating cause for the brand beyond making money Investors Why should I invest in you? POSITIONING VALUES What you offer How you behave A statement capturing the credible and unique position of the brand in the market The three or four things that matter most to the brand to guide its behaviours PERSONALITY Employees Why would I work for you? Who you are The human characteristics of the brand that customers connect with emotionally Society What gives you permission to operate? 27 What´s a claim and how to create it? The claim is a short and easy to understand sentence summarizing the brand promise. Once the positioning platform is final, we develop the corporate claim to ease the launching of the new brand promise across all audiences. In the business environment, as in the rest of society, there is a continuous increasing complexity of communications: there are more players launching more messages. Our experience indicates it is therefore crucial to have a choose claim that is consistently applied at all touchpoints so that the brand may get its message across, specially with B2B brands which have limited communication resources. 3. 3. The three-step process to identify the best claim to enhance the Brand positioning: 1 To set the framework for the claim 2 multiple To explore interpretations within the framework 3. 3 To select and refine the best claim The claim allows us to pick up that promise in a way that is easy to remember • It is an expression that conveys the promise of the brand. • It is a simple phrase that collects the central idea of positioning in a differential format, easy to understand and remember. • Based on the positioning, a distillation process is carried out to identify creative and emotional expressions. Session 2 Teamwork Following with the same Brand choosen in the previous session, you have to work on: 1. Vision and Mission or Purpose 2. Values/ attributes 3. Corporate Brand positioning Due date: Before session 8, the last one. Illustrative example Brand strategy example 37 We adapt to the needs and nuances of our customers, to their pace and their objectives. The word “growth” has the flexibility to take on a unique meaning for every project or individual. Growth Enablers Creative idea: We arm our clients with the tools, team and attitude necessary to transform their growth potential. 38 Purpose Why you’re here Our differential proposal in a sentence that we incorporate into our internal philosophy and way of doing things, as if it were a mantra. 39 We make progress possible in this new era by strengthening the bonds between people and things. 40 Values How you behave The pillars that define what the company stands for, and on which the brand's positioning is built. This is our unique way of doing things. 41 Human-centric “Most of us must learn to love people and use things rather than loving things and using people.” Roy T Bennett – The Light in the Heart We aim to humanise a industry that is so often product-centred and to counteract the aggressive nature of the competition with our dialog and understanding. We are a company comprised of people and we exist for people. We connect emotionally with our customers, we share their needs and objectives, and we put effort into both understanding their unique way of thinking and adapting to their needs. 42 Open 1) Lack of restrictions; accessibility. 2) Lack of secrecy or concealment. Oxford English Dictionary “An honest way of talking and behaving in which you do not try and conceal or hide anything. MacMillan Dictionary We present a unique value proposition in the market and to regulators. This is not only by offering a product that is competitive and of quality, but by behaving in our own way as a brand. Our open and inclusive attitude also expands into our environment. It denotes an evolution with respect to the current centralised industry landscape, a breaking-down of barriers that opens doors to companies of all sizes. 43 Constant improvement Continuous improvement is like a religion. It is a never-ending strive for perfection in everything you do. KANBANIZE.com We identify and analyse every element that contributes towards reaching our goals and targets. It is a fundamental property which allows us to reinforce our processes while always being vigilant for ways to improve. The client and their future needs forms the basis of our roadmap. We anticipate changes to our client and our industry. 44 Outcome orientated One who resolves or aims to resolve issues or problems with efficiency, speed and determination. Our expertise together with our effort and engagement with our projects means we act in an efficient and committed way. We take on challenges with responsibility and resilience. We take decisions we can be proud of and always with the end goal of a positive outcome. Real Academia Española 45 Personality Who you are A unique combination of anthropological attributes that we appropriate to humanize our company, develop our identity and ultimately connect with our audiences in a relevant way. 46 Positioning What you offer The support of what we are. The developed and narrated explanation that covers what we do, how we do it and why we do it. 49 49 At Newco we strengthen the bonds between people and things. We facilitate the growth of telecommunications operators through a solid and competitive FTTH infrastructure provided by a team of upstanding and expert people who adapt to the customer and their needs. 50 Muchas gracias 53 Session 3: What do we believe in when we talk about Brand architecture and Portfolio management? 1 As brand consultants, we understand as Brand Architecture… …an organizational structure that specifies the type, number , relationship and hierarchy of brands within the business portfolio. It is an integral part of a company’s brand strategy which is at the business’ service. 2 When is considered "healthy" a project of this nature? ✔Confused Internal / external audiences ✔The company is facing international expansion processes ✔There are inefficiencies in a very limited budget environment ✔Debates / internal controversies are open because there is uncertainty regarding the role of some brands Competition is stiff and it’s hard for companies to differentiate. 3 The key of brand architecture is understanding when differentiation creates value. 4 The brand architecture approach will be faced integrally: 1. Macro architecture: Corporate Brand We will evaluate the relationship of the brands with the different business lines’ brands, as well as other countries’ brands that have more than one denomination. 5 The brand architecture approach will be faced integrally: 2. Micro architecture: Products/services… We will evaluate the relationship of the different business lines with the products services and channels. 6 There are nor good or bad brand arquitecture models. Everything depends on the business. 7 Possible models depending on the master brand’s role Pure monolithic Master brand Monolithic modified Master brand Sub-brand Master brand subrand Endorsed Corporate invisible endorsed Independent descriptor Master brand The master brand’s message is enough and suitable for all audiences. The master brand has a predominant role, being necessary but not sufficient. The type of business is specified. The sub - brands have different promises, Achieving a unique brand image but at the same time, related to the master brand. Each brand (business line ) has its own values, which are supported by the master brand. Each brand has its own values ​and audiences. The relationship between brands is nonexistent and the master brand has not visibility. 8 Brand architecture models Monolithic pure Monolithic modified Sub-brand Endorsed Corporate invisible 9 Brand architecture models Monolithic pure Monolithic modified Sub-brand Endorsed Corporate invisible 10 Brand architecture models Monolithic Monolithic pure modified Sub-brand Endorsed Corporate invisible 11 Brand architecture models Monolithic pure Monolithic modified Sub-brand Endorsed Corporate invisible 12 Brand architecture models Monolithic pure Monolithic modified Sub-brand Endorsed Corporate invisible 13 14 Unilever's top 25 brands account for more than 70% of its sales Brand architecture answers some important questions 17 What’s the organising principle for our portfolio? 18 Do we have the right number of brands? 19 What's the right level of family resemblance, for us and our customers? 20 How can our brands help each other? 21 How can our corporate brand help its sub-brands? 22 How can our sub-brands help our corporate brand? 23 Are we building towers or bridges? 24 Different business’ strategies demand different brand architecture solutions 25 THIS? “ Every day around the world we continue working to realise our vision ‘One Aviva, Twice the Value’. By working together closely, we are transforming our business, optimising our performance and maximising the value we generate for all our stakeholders. ” - Andrew Moss, Aviva Group CEO Brand Architecture Workshop | December 2, 2014 | © FutureBrand 2014 OR THIS? “ Our new tagline ‘One Company. Many Brands’ aptly describes our aim to combine the scale benefits of a large, unified financial services group with the market strength that comes from having a portfolio of leading brands. ” - Patrick Snowball, Suncorp Group CEO Brand Architecture Workshop | December 2, 2014 | © FutureBrand 2014 To create a brand architecture at the macro level we consider different portfolio criteria Price Brands are segmented according to the price consumers are willing to pay. Geography Brands are segmented by region Product / category Brands are segmented according to the product category in question . Channels Brands are segmented according to the distribution channel . Demography Brands are segmented by different types of demographic profiles. Mindset Brands are segmented by different types of lifestyle. 3 0 How to identify the strongest and most strategic brands of the portfolio (at corporate level) What is its level of strength? high medium Established Emergent low *It is understood by strength the measurement of awareness or brand reputation . 3 1 There is a lot of work to do on the micro level: only some products/ solutions need to become brands (at products/services level) • Our objective: Clarify the portfolio and communicate with more precision. • We will identify when it becomes insufficient to remain in a merely denominative frame because a name and an independent graphic development is required. Brands • Some of these cases will be strategic for the long-term, others might be tactical for the short-term. Denominations 32 PORTFOLIO MANAGEMENT Maximizing market coverage and growth potential A good Portfolio Segmentation is key for a winning strategy; It’s needed to minimize the overlapping between the different brands in your company and maximize your reach. Different targets: Socio-demographics, Psychographics, Motivational, Behaviour. Different Occasions: E.g. Breakfast, Lunch, after-school snack, dinner,... Different needs/motivations: E.g. Belonging, self indulgence, recognition... Current position in the market and your potential growth (BCG Matrix) Based on the countries the brands are sold: Global, Local & Glocal PORTFOLIO MANAGEMENT Traditional ways to organize your portfolio (just based on size and growth potential), but they are not customer centric. PORTFOLIO MANAGEMENT But a portfolio need to follow a consumer-centric organization: PORTFOLIO MANAGEMENT WEEKDAY WEEKEND Relax at home Unplug to socialize Buddy Bonding Special celebrations Socializing meals Leisure at home Let’s party Relaxing weekends Romantic Moments PORTFOLIO MANAGEMENT And also taking into account Global and local brands… GLOBAL LOCAL 30 PORTFOLIO MANAGEMENT GLOCAL 33 PORTFOLIO MANAGEMENT How to prioritize?- Brand prioritization model 1. Identify the relevant brand set: Brands and subbrands. 2. Develop Brand Assessment Criteria: a. Brand equity: awareness, reputation, differentiation, relevance, loyalty. b. Business Strength: Sales, Market share, Profit Margin, Growth c. Strategic Fit: Extendibility, potential as platform for growth, Business fit. 3. Evaluate the brands: Introduce weighting can be useful to make it objective. 4. Prioritize brands: Tier 1, tier 2, Tier 3 Source: Spanning Silos: The new CMO imperative. David A. Aaker Session 3 Teamwork Please continue working in assignments explained in Sessions 1 and 2. Muchas gracias Session 4: WHAT IS BRAND WHAT IS BRAND EQUITY? Brand equity is a term used to describe the value of having a recognized brand, based on the idea that firmly established and reputable brands are more successful. More specifically, it’s a set of brand assets and liabilities linked to a brand name and symbol, which add to or subtract from the value provided by a product or service. EQUITY VALUE Source: Prophet. com REPUTATION ASSETS BRAND EQUITY IS WHAT WE BUILD IN CONSUMERS MIND (not what we say, is what they think) WHAT IS BRAND EQUITY? EXAMPLE Taste perceptions of Six Beer Brands when the drinker knows what he is drinking Source: Keller, Strategic Brand Management Taste perceptions of Six Beer Brands when the drinker does NOT knows what he is drinking Keller’s Brand Equity model Principle: In order to build a strong brand, you must shape how customers think and feel about your product. You have to build the right type of experiences around your brand, so that customers have specific, positive thoughts, feelings, beliefs, opinions, and perceptions about it. Keller’s Brand Equity model (cont.) Source: Keller, Kevin, Strategic brand management: global edition, 4th. BAV Group´s BrandAsset Valuator – BAV Model Source: https://www.bavgroup/about-bav accesed August 12, 2019 Rohit Deshpandé and Anat keinan. Core Reading: Brands and Brand equity, HBP nº 8140 BAV Power Grid Source: Adapted from BAV Group, https//bavgroup.com/about-bav/brandassetr-valuator. BAV Pillars: Assessment of Starbucks in 1993 and 1997 Source: “The Story of the Young&Rubicam BrandAsset Valuator Investigation” accessed August 12, 2019. Which are the Brand equity assets? Brand Name Awareness Brand Associations BRAND EQUITY Perceived Quality Brand Loyalty +Brand experience 1. BRAND AWARENESS Selective attention. We tend to pay more attention to the realities and messages that connects with our motivations, needs, wants… This is key to build brand awareness https://www.youtube.com/watch?v=vJG698U2Mvo 1. BRAND AWARENESS Byron Sharp’s 7 Rules for Brand Growth https://www.slideshare.net/zanaida/how-brands-grow-a-summary-of-byron-sharps-book https://adage.com/article/cmo-strategy/the-world-according-to-byron-sharp-customer-loyaltycheating/309532/ https://www.slideshare.net/maverick77/how-brands-grow-quick-reference- guide % People saying your brand in the 1st or 2nd place when asking about the Market. Question: Which brands of soft drinks do you know? BRAND RECALL (Unaided) % People who know your brand, when asking about the market Question: Which brands of soft drinks do you know? BRAND RECOGNITION (Aided) % People who know your brand, when mentioning it in the question Question: Do you know Coca-Cola? BREADTH OF BRAND AWARENESS Range of purchase and usage situations where the brand element comes to mind Source: Keller, Strategic Brand Management Likelihood that a brand will come to mind and the ease with which it does so TOP OF MIND DEPTH OF BRAND AWARENESS 1. BRAND AWARENESS 1. BRAND AWARENESS From top of mind to top of google 2. BRAND ASSOCIATIONS Brand associations or image are the group of perception about a brand in the consumers’ mind. There are two types: ATTRIBUTES (what the brand has/is): • Product • Non-Product Related: Price, user imagery, usage imagery, feelings and experiences and brand personality (archetype). BENEFITS (what the brand does) • Functional benefits • Emotional & symbolic benefits. Including brands as“badges” (identity) • Experiential benefits Source: Keller, Strategic Brand Management 2. BRAND ASSOCIATIONS How would you define the brand VOLVO? 2. BRAND ASSOCIATIONS – Free association technique Key words that come to your mind when I say BMW? (don’t think, just say) 2. BRAND ASSOCIATIONS As said, brand association can be related with attributes and benefits. Personality analysis is key. ATTRIBUTES: • • Product Non-Product Related: Price, user imagery, usage imagery, feelings and experiences and brand personality (archetype). BENEFITS • Functional benefits • Emotional & symbolic benefits. Including brands as“badges” (identity) • Experiential benefits Source: Keller, Strategic Brand Management 2. BRAND ASSOCIATIONS – BRAND ARCHETYPE Brand personality is one of the nonproduct related attribute. Brand Personality is defined with characteristics, traits (like a human being) and these are related to specific values. They are 12 Archetypes, and a brand should have one key archetypes and 12 other secondary archetypes. https://www.youtube.com/watch?v=NyBMtHyKm10 2 6 3. PERCEIVED QUALITY Perceived quality is a brand association elevated to the status of brand asset for several reasons: • • • Among all brand associations, only perceived quality has been shown to drive financial performance Perceived quality is often a major strategic thrust of business It’s linked to and often drives other aspects of how a brand is perceived-> Brand goodness. • • Source: Building Strong Brands. David A. Aaker 4. BRAND LOYALTY Loyalty is a very important brand equity asset too: • A brand’s value to a firm is largely created by the customer loyalty it commands. • It encourages and justifies loyalty-building programs which then help create and enhance brand equity. CUSTOMER LIFETIME VALUE* *Net Present Value is a financial metric to measure the economic impact of this customer lifetime value Source: Building Strong Brands. David A. Aaker 5. BRAND EXPERIENCE • • Everything you say, do, make people feel Every interaction with the brand • What people say about their brand experience Measuring Brand Equity Quantitative Research: “Quantifying it” • Awareness & Image tracking Brand Power (Kantar) Qualitative Research Techniques: “Explore in depth” • Free Association: What comes to your mind? • Projective Techniques: Completion and interpretation task, comparison task (e.g. If the brand becomes a person, celebrity, car,…) • Zaltman Metaphor Elicitation Technique (ZMET): with pictures Session 4 Teamwork Please continue working in assignments explained in Sessions 1 and 2. Following all the steps from Brand Audit to Brand Strategy we will create and develop the Brand equity ¡¡¡¡MUCHAS GRACIAS!!!! BRAND ARCHETYPE - The Creator 29 BRAND ARCHETYPE - The Caregiver 30 BRAND ARCHETYPE - The Regular Guy / Girl (also known as Citizen or everyday man/woman) 31 BRAND ARCHETYPE - The Lover 32 BRAND ARCHETYPE – The Magician 33 BRAND ARCHETYPE - The Outlaw, the rebel 34 BRAND ARCHETYPE - The Innocent, sometimes known as the Maiden 35 BRAND ARCHETYPE - The explorer 36 BRAND ARCHETYPE - The jester 37 BRAND ARCHETYPE - The ruler 38 BRAND ARCHETYPE - The sage 39 BRAND ARCHETYPE - The hero 40 Session 5: Marketing strategy Marketing strategy: how it fits into business strategy What is a strategy? • Strategy is a plan that aims to give the enterprise a competitive advantage over rivals. It is about understanding what you do, knowing what you want to become, and, most important, focusing on how you plan to get there. Aligning marketing strategy with business strategy • Every function must likewise align its goals and activities with the larger business strategy. In the case of marketing, everything it does- from pricing, to distribution, to how it communicated with customers- should be planned in a way that serves strategic goals. • Marketing needs to answer: what difference is valued and by whom? • Marketing practitioners need to provide input in (among others): competitive threats, profitable opportunities, latent customer needs. Source: Marketing strategy: how it fits into business strategy. Harvard Business School Publishing, 2005 The strategy process Vision Mission Goals Strategy creation External environment Implementation tactics Performance measurement Source: Marketing strategy: how it fits into business strategy. Harvard Business School Publishing, 2005 Internal environment How to define a marketing strategy • 3 phases: analysis, decisions and outcome • Each phase has its specific content Source: Core reading. Framework for marketing strategy formation. Harvard Business School Publishing, 2019 How to define a marketing strategy Once the 3 phases are completed you have to implement it and measure it • Timeline and Implementation Plan: • Creating a timeline that outlines when each marketing activity or campaign will be executed. This ensures that the marketing strategy is carried out effectively and efficiently. • Monitoring and Measurement: • Establishing key performance indicators (KPIs) to track the success of your marketing efforts. Regularly measuring and analyzing results to make data-driven adjustments to the strategy. • Risk Assessment and Contingency Plans: • Identifying potential risks and challenges that could affect the implementation of the marketing strategy and developing contingency plans to mitigate these risks. • Feedback and Adaptation: • Continuously collecting feedback from customers, monitoring market changes, and being prepared to adapt the marketing strategy as needed to stay competitive and relevant. The 5 C´s: customer, company, collaborators, competition and context • Customer: how potential customers make a purchase decision? Who is involved in the decision? Assess the potential market size and customer wiliness to pay for your product. Customer=riders 1. Premium: chauffer service 2. High-Frequency riders (HFR): quick and effortless 3. Commuters: respect my routine 4. Social: ride cheaply and safety with friends 5. Traver: helping hand The 5 C´s: customer, company, collaborators, competition and context • Company: Strengths and weaknesses. Need to understand firm´s finances, R&D capabilities, manufacturing sites and other assets. • Collaborators: external partners that can be accessed to complement those of the company The 5 C´s: customer, company, collaborators, competition and context • Competition: assess other´s offerings, the market they address, how they address it and how all that will evolve over time The 5 C´s: customer, company, collaborators, competition and context • Context: It is always changing. PESTEL: Political, Economic, Social, Technological, Environmental and Legal How market strategy changes subject to the phase of the product life cycle where the product is REINTRODUCTION HYPERMATURITY DECLINE Source: Core reading. Framework for marketing strategy formation. Harvard Business School Publishing, 2019 How market strategy changes subject to the phase of the product life cycle where the product is  Products (market offerings) have a limited life.  Sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller. A company’s positioning and differentiation strategy must change as the product, market and competitors change over the product life cycle.  Profits rise and fall at different stages of the product life cycle. Watch video on different stages in PLC (8 min):  Products require different marketing, financial, manufacturing, purchasing and human resources strategies at each stage. http://www.youtube.com/watch?v=CRfjJ9yOyp0 Source: Core reading. Framework for marketing strategy formation. Harvard Business School Publishing, 2019 How market strategy changes subject to the phase of the product life cycle where the product is Source: Core reading. Framework for marketing strategy formation. Harvard Business School Publishing, 2019 How market strategy changes subject to the phase of the product life cycle where the product is Source: https://marketing-insider.eu/product-life-cycle-strategies How market strategy changes subject to the phase of the product life cycle where the product is Source: https://marketing-insider.eu/product-life-cycle-strategies How market strategy changes subject to the phase of the product life cycle where the product is Product Life Cycle – Further considerations  Not all products go over all PLC stages  Each product has a specific PLC’s length  Each product’s stages (on the PLC) has a specific length  The PLC is a dynamic concept that may change quickly. Therefore marketers have to be quite cautious when assuming the stage in which a specific product is Source: Core reading. Framework for marketing strategy formation. Harvard Business School Publishing, 2019 How market strategy changes in the phases of the product life cycle • In which product life cycle are these products? How market strategy changes in the phases of the product life cycle • In which product life cycle are these products? How market strategy changes in the phases of the product life cycle • In which product life cycle are these products? How market strategy changes in the phases of the product life cycle • In which product life cycle are these products? How market strategy changes in the phases of the product life cycle • Penetration, frequency, retention, premiumization Penetration: attracting new customers to increase a company's market share or customer base within its existing market or industry. Frequency: repeatedly exposing the target audience to marketing messages or advertisements over a specific period to enhance brand recall and message retention. Retention: preserve/maintain your existing customers and encourage repeat business. A retention strategy aims to build strong, long-lasting relationships with customers, increase their loyalty to the brand, and reduce customer churn (the rate at which customers stop doing business with the company). This is often more cost-effective than constantly acquiring new customers. Premiumization: positioning a product, brand, or service as high-quality, exclusive, and offering superior value compared to competing offerings in the market. The goal is to differentiate the product from lowerpriced alternatives and to attract a specific target audience that is willing to pay a premium for the perceived higher quality. Source: Marketing strategy: how it fits into business strategy. Harvard Business School Publishing, 2005 Source: The right customers: acquisition, retention and development. Harvard Business School Publishing, 2005 How market strategy changes in the phases of the product life cycle • How penetration, frequency, retention, premiumization fit with the product life cycle? 1. Introduction Stage: 1. Penetration Strategy: It is the recommended strategy for introduction stage. During the introduction stage, a penetration strategy can be employed to quickly gain market share and establish a foothold in the market. This involves offering competitive pricing, promotions, and incentives to attract early adopters and create awareness. 2. Frequency Strategy: To generate interest and awareness, frequency marketing can be used to expose the target audience to the new product's features and benefits through consistent advertising and communication. 3. Retention Strategy: Early adopters are crucial during this stage. A retention strategy can involve providing exceptional customer service, addressing feedback, and continuously engaging with these initial customers to build loyalty and encourage repeat purchases. https://magrocardona.com/ https://www.instagram.com/magrocardona/ First store opened in Dec 2017 Source: The right customers: acquisition, retention and development. Harvard Business School Publishing, 2005 How market strategy changes in the phases of the product life cycle • How penetration, frequency, retention, premiumization fit with the product life cycle? 2. Growth Stage: 1. Penetration Strategy: Continued penetration efforts can help capture a larger share of the growing market as more customers become aware of and interested in the product. 2. Frequency Strategy: It is the recommended strategy for growth stage. As competition intensifies, maintaining consistent frequency of marketing messages helps keep the brand top-ofmind and sustain growth. 3. Retention Strategy: Building a base of loyal customers becomes increasingly important. A retention strategy can involve implementing loyalty programs, offering personalized experiences, and expanding customer engagement. Source: The right customers: acquisition, retention and development. Harvard Business School Publishing, 2005 How market strategy changes in the phases of the product life cycle • How penetration, frequency, retention, premiumization fit with the product life cycle? 3. Maturity Stage: 1. Penetration Strategy: Penetration strategies may become less effective in mature markets. Companies might consider focusing on increasing market share through acquisition or targeting new segments. 2. Frequency Strategy: Maintaining a moderate frequency of marketing communications to remind customers of the product's benefits can help sustain sales. 3. Retention Strategy: It is the recommended strategy for maturity stage. Retaining customers becomes critical in the face of increased competition. Implementing comprehensive retention strategies, such as providing superior customer service and continuous value, can help maintain loyalty. Source: The right customers: acquisition, retention and development. Harvard Business School Publishing, 2005 How market strategy changes in the phases of the product life cycle • How penetration, frequency, retention, premiumization fit with the product life cycle? 4. Decline Stage: 1. Penetration Strategy: In the decline stage, penetration strategies are generally not suitable, as the market is shrinking. 2. Frequency Strategy: Reducing frequency of marketing efforts might be appropriate as resources are reallocated. 3. Retention Strategy: Focusing on retaining the most loyal and profitable customers can help maximize revenue during the decline stage. 4. Premiumization Strategy: It is the recommended strategy for decline stage. A premiumization strategy could be considered to cater to a niche market that values exclusivity and is willing to pay a premium, thereby extending the product's life cycle https://www.brother.es/faxes/fax2845?gclid=EAIaIQobChMIifmIv4PhgQMVz9 vICh3VUQP1EAQYASABEgJ4z_D_BwE Source: The right customers: acquisition, retention and development. Harvard Business School Publishing, 2005 BLOCK 1 IKEA´s vision “To create a better everyday life for the many people” https://www.ikea.com/gb/en/this-is-ikea/about-us/the-ikea-vision-and-valuespub9aa779d0 https://businessmodelanalyst.com/ikea-mission-and-vision-statement/ IKEA´s mission “A better everyday for most people” https://www.ikea.com/gb/en/this-is-ikea/about-us/the-ikea-vision-and-valuespub9aa779d0 https://businessmodelanalyst.com/ikea-mission-and-vision-statement/ INDIA2018 Marketing strategy: how it fits into business strategy 5C´S The 5 C´s: customer, company, collaborators, competition and context Customer: IKEA connected with Indian consumers in different ways: • demographic • understanding consumer behavior and beliefs and the differences between regions • population purchasing power - Emotionally: touching the soft spot of chi