Brand Management & Storytelling PGE M1 Session 1 PDF

Brand Management & Storytelling PGE M1 Session 1 Séance 1 Isabelle ULRICH (Resp. of course) Kafia Ayadi Alain Groult Elisha Moore [email protected] [email protected] [email protected] [email protected] 1 Outline S2 : Build strong brands 1. Managing a brand: Marketing process 2....

Brand Management & Storytelling PGE M1 Session 1 Séance 1 Isabelle ULRICH (Resp. of course) Kafia Ayadi Alain Groult Elisha Moore [email protected] [email protected] [email protected] [email protected] 1 Outline S2 : Build strong brands 1. Managing a brand: Marketing process 2. Managing a brand: external analysis 2.1 Market 2.2 Market environnement 2.3 Consumers 2.4 Competitors 3. Managing a brand: Strategy 3.1 Segmentation 3.2 Targeting 3.3 Brand positioning 2 1. Managing a brand: marketing process 3 Overall marketing process (in general) External Analysis ANALYSE Marketing Research Internal Analysis Market and environment Consumers Competitors Distributors Company Brand performance Current brand Strategy Current marketing mix Combined: Combined: OPPORTUNITIES/THREATS STRENGTHS/WEAKNESSES Problems DECIDE Strategic Marketing ACT Operational Marketing CONTROL Marketing control Objectives Strategic Choices Segmentation - Target - Positioning Implementation of the Marketing Mix: Product - Price - Place - Promotion Evaluation of results compared to objectives 2. Managing a brand: external analysis 2.1 Market 2.2 Market environnement 2.3 Consumers 2.4 Competitors 5 2.1 Market Key question: what is the future of this market? – market size (volume, value) – trends (short or long term) – structure (by product...) – Margins and profitability 6 What is the future of the laundry cleaning market? 7 2.2 Market environment Key question: understanding environmental features that directly influence the market – – – – Political: public policies (transport, education,...) Economic: economic situation, purchasing power Social: consumer trends Technological: technological innovation, new patents – Ecological: availability of natural resources, climate – Legal: changes in regulations, standards,... 8 2.3 Consumers Key questions: understanding their needs & wants – WHO is involved in buying and consuming? – WHAT are their choice criteria? – WHEN do they buy/use the product? – WHY do they buy/use the product? – WHERE do they buy – HOW do they use the product? 9 Consumer research in marketing: different types of studies, along key marketing steps 10 Consumer research: always the same process 11 Marketing research types – France Evolution of Marketing research turnover over 2011-2014 (Source : Syntec) Others (mixed methods…) Quantitative Qualitative 12 Marketing research types - France QUANTITATIVE QUALITATIVE Others Panels Qualitative on internet Interviews Studies by internet Phone studies Experiments in location Focus groups Face-to-face In % of Research Turnover. Source : Syntec 13 2.4 Competitors Key question: understanding who is the most powerful, who is the most dangerous – WHO? Select your key competitors – WHAT to analyse? Analyse the competitive position of the main brands: which is the leader? the challenger? a follower? a specialist? Analyse the competitors’ current strategy: why are they successful? Why are they not successful ? 14 Learning from competitors 15 Competitors analysis: what? Sources of competitors’ information 16 3. Managing a brand: Strategy 3.1. Segmentation 3.2. Targeting 3.3. Brand positioning: the art of positioning 17 3.1 Segmentation Segmenting a market consists in identifying distinct groups of customers who respond similarly to the company’s offers. Market segment is a group of consumers who share the same desires and interests in a product/brand Main criteria for segmentation? 18 Main criteria for segmentation (consumer markets) Behavioral. Loyalty status 19 Example: segmentation on sought benefits - Decay prevention Flavor and freshness Antibacterial Sensitive teeth Anti-Decay Whiteness Anti-Calculus Gingiva Breath Sensitive teeth Freshness Antibacterial 20 Barbie: segmentation criteria? demographics: age The mythical Barbie has never made so many dream (a doll is sold every five seconds!). Inexhaustible source of scenarios, of imagination and social learning, in sync with a generation that changes, it adjusts (80% of models are renewed each year) and accompanies the little girl in all she lives and helps her to grow up. If I was… a princess If I was… a mermaid If I was… a star If I was… a teenage girl If I was… a mom 3 to 4 years: princess dreams 6 to 7 years: copy the adult world 8 to 12 years: live like role models 21 3.2 Targeting Assess the relative attractiveness of each segment and choose segments on which to focus baby milk Mothers of babies aged 0-12 months cosmetics Women 25+, urban, social class A 22 Three main targeting possibilities Undifferentiated strategy – Target everyone with the same product Differentiated strategy – Target different segments with specific products Concentrated strategy – Target one segment with one product (major segment or niche) 23 3.3 Brand positioning « The art of designing the company’s offer and image so that it occupies a distinct and valued place in the target customers’ minds » Brand positioning is based on: - Brand promise: functional/emotional benefit - Reason-why (Reason to believe) – not always - Consumer target - Competitors Brand concept 24 3.3 Brand positioning Three distinct expressions of brand positioning: Positioning Map (tool) Positioning Statement (internally-facing) Slogan/Brand Signature/Tagline (customer-facing) 25 3.3.1 Define a reference market To which « product category » does my brand/ product belong? – Who do you want to compete against? – Who will the customer think of as your competitors? – Is the market one you can tackle? 26 3.3.1 Define a reference market To which « product category » does my brand/ product belong? – Simple brand/product Minute Maid: fruit juice or soft drinks? 27 3.3.1 Define a reference market To which « product category » does my brand/ product belong? – More complex when brands cover different product categories Nesquik: chocolate powder? Cereals ? Biscuit bars? « Umbrella Brand » Chocolate powder Ready-to-drink Cereals Cereal bars 28 Exercise: To which « product category » does the brand Apericube belong? Cheese? Aperitif? 29 Key Concepts: POP and POD Points of Parity: – Associations shared with other brands – Brand may be in consumer’s POP tolerance zone (not necessarily superior to other brands), but must have required/relevant POP to be considered as part of that category (minimum-to-play) Points of Difference: – Distinctive attributes and benefits associated by consumers to the brand and giving the brand clear superiority. – Strong, favorable and unique associations: come from consumer research (qualitative: mental map of brand) 30 POP and POD Example: Smart Phones What are the What are the Points of Parity? Points of Difference? – Features – Functions – Attributes – Features – Functions – Attributes 31 How to establish category membership? 1. Claim the key benefits required to prove category membership – Laundry liquid: removes stains well – Laundry softener: makes fabric feel softer 32 How to establish category membership? 2. Use visuals/imagery usually associated to the category – Logo – On pack – Communication Mom-child relation Advertising on baby-milk brands Soft color hues Intimacy 33 How to establish category membership? 3. Compare to category prototypes: Using a category exemplar is a way to transfer its meaning to your brand – Example of Tommy Hilfiger, associating with Geoffrey Beene or Calvin Klein to be part of great American fashion designers 34 How to establish category membership? 3. Compare to category prototypes: Using a category exemplar is a way to transfer its meaning to your brand – Comparative advert Samsung Galaxy S3 campaign, comparing it to I-phone 5 « it doesn’t take a genius » 35 3.3.2 Define positioning: build on POD Points of difference (differentiators): – Distinctive attributes and benefits associated by consumers to the brand and giving the brand clear superiority. – Strong, favorable and unique associations: come from consumer research (qualitative: mental map of brand) 36 3.3.2 Define positioning: build on POD 2 types of POD : – Based on functional attributes Differences in terms of technical attributes, performance, quality, price, security…. – Based on emotional attributes (image/ affective) Difference in image or relationship with customer 37 3.3.2 Define positioning: build on POD Functional POD : 38 3.3.2 Define positioning: build on POD Emotional POD : 39 Example of positioning based on a functional POD Positioning: Geox is a shoe that adresses the issue of foot perspiration Slogan: Geox, the shoe that breathes. 40 Example of a positioning based on an emotional benefit Positioning: Trésor brings back the intense and interior emotion of love dating moments Slogan: Trésor, le parfum des instants précieux (=Trésor, the perfume of precious moments) 41 Positioning based on functional POD or emotional benefit ? 42 Positioning statement based on functional POD or emotional benefit ? 43 Brand « mental map » helps select PODs Can be developed from qualitative research, as the combination of all the associations that come to customers’ minds. Can be done subjectively by the Mkg team or experts (but reliability?) Ease of use Toys Macintosh Amusing Innovative Fun Kids Family Products fresh Meal Quality Good taste Trendy Creative tool Playground Pleasant Ipod Pricing Value Social Source : Lewi (2005) Involvement Promotions Consistent Service 44 Positioning Map Key Uses: As part of your Competitive Analysis, can help you see how your competitors are positioned, as well as identify potential opportunities in the market and over-crowded areas As part of your Company Analysis, can show your brand’s current position against competitors, as well as the strength of your current positioning As part of your Strategic Plan, can use it to show your desired new positioning 45 Keys to good Mapping A good positioning map will: Have axis points based on the consumer’s wants/needs and decision criteria – remember it must be a spectrum! Be specific to the category, and dig deeper than « price » and « quality » Axis points must be positive associations and independent variables Be able to fit all the competitors on the map 46 Mapping as a tool to select the relevant positioning active seduction provoke play a character self-esteem self-fulfillment enchanting to seem become assertive share romantic to be possess look for truth escape dream Re-energise elegance passive seduction 47 Mapping as a tool to select the relevant positioning Original fashionable Swatch Benetton casio Luxury Seïko Rollex Kelton Kiple Taïwan Daily Yema Omega Van Cleef Cartier Classic timeless 48 Mapping as a tool to select the relevant positioning Premium Inspirational stores Modern Traditional Low-cost 49 DO NOT DO THIS!! Not specific to the category Uses two dependant variables Doesn’t follow customer’s decision criteria 50 Choosing a « good » POD Desirability criteria for customer – Relevant (based on consumer insights – do not copy competitors without consumer data) – Distinctive and superior to competition – Believable Need reason-why Feasibility for the company – – – – – Technically feasible Easy to communicate Claimable vs regulations Defendable and difficult to attack Protectable? 51 Define positioning: also build on POP Points Of Parity: – Associations shared with other brands – Brand may be in consumer’s POP tolerance zone (not necessarily superior to other brands), but must have required/relevant POP (minimum-to-play) 2 types of POP: – Category Points of Parity (minimum-to-play) Attributes necessary for the brand to be seen as a true member of the category (cleans well for a detergent) – Competitive Points of Parity (me-too) Associations that negate competitors’ PODs 52 Communicate on opposite POP and POD A challenge for marketers: attributes that constitute POP and POD may be negatively correlated – – – – – Affordable price vs high quality Nice taste vs low calories Powerful vs safe Strong vs refined Wash well vs keep soft (detergents, shampoos…) Attributes can have a positive / negative side: – Long heritage positive side: experience, expertise negative side: old-fashioned 53 Communicate on opposite POP and POD Separate attributes: 2 distinct campaigns ex: Head & Shoulders Build on another entity associated with the sought attribute: – celebrity or expert endorsement – country-of-origin – sponsorship 54 3.3.3 Crafting the brand positioning statement Start with this Formula: For (target consumer), brand X is the brand from (the brand category Y), which produces (benefit), because (reason-why). Remember that this is the « internal » statement – it should use plain language, not « snappy » ad copy « Cold dead fish » versus « Sushi » 55 3.3.3 Define Brand positioning statement For (target consumer), brand X is the brand from (the brand category Y), which produces (benefit), because (reason-why). Example: For consumers of mayonnaise, the brand Amora is the brand of mayonnaise which has the best taste, because it contains real Dijon mustard. Example: For little kids and big kids, Danette is the brand providing daily indulgence and a unique moment of sharing between family members. This is because of its unique creamy texture made with milk and a touch of cream, and intense warm flavours. T Example: For all housewives, Ariel is the brand that gets their laundry cleaner than any other detergent. Support is Ariel’s ability to remove the most difficult dirt and stains, even at low temperatures, thanks to its unique formulation. 56 3.3.3 Define Brand positioning statement For (target consumer), brand X is the brand from (the brand category Y), which produces (benefit), because (reason-why). Example: For consumers of mayonnaise, the brand Amora is the brand of mayonnaise which has the best taste, because it contains real Dijon mustard. Simple and direct Example: For little kids and big kids, Danette is the brand providing daily indulgence and a unique moment of sharing between family members. This is because of its unique creamy texture made with milk and a touch of cream, and intense warm flavours. Too wordy; benefit doesn’t line up Example: For all housewives, Ariel is the brand that gets their laundry cleaner than any other detergent. Support is Ariel’s ability to remove the most difficult dirt and stains, even at low temperatures, thanks to its unique formulation. Poor targeting, vague Reason Why 57 Define brand positioning for emotional benefits: use moodboards To formulate a positioning for a perfume or fashion brand, use visuals and not words. E.g. express the personality of the perfume brand user thanks to visuals Example : Miss Dior Couture 58 Evolution of positioning over time Try to deepen brand positioning – Deepen brand meaning by communcating associations and attributes more abstract – Develop brand values : elaborate a brand platform, a brand mantra: needed when the brand covers many product categories Reacting to competitive positionings – Go on the defensive : if competitors actions appear strong, add some reassurance in product or advertising to strengthen POD or POP – Go on the offensive : if competitors actions look damaging, reposition the brand or add product extension responding to the threat – Do nothing ! ! 59 Positioning: from product-brand to umbrellabrand Positioning statement: more complex for umbrella brands Formulate a common/global promise, even if specific benefits exist for some products within the range Build on common strong, unique and favourable associations: more abstract or emotional associations. Build on values. (= by love of taste) MUSTARDS AND CONDIMENTS SALADE DRESSING VARIOUS DRESSINGS PICKLES VINAGRES 60 To sum-up : define a brand positioning 1. Segmenting 2. Targeting 3. Checking reference market and competitive brands 4. Identifying your brand POD and POP 5. Defining a positioning statement 61 61 In-class exercise Vitamin water Apply the Segmenting/Targeting/Positioning approach and formulate a positioning statement. 62