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Michael Keller

Michael Keller. Chief Brand Officer American Dairy Queen. MarkED Conclave ‘06. Everything Communicates!. Building A Brand By “Delivering the Promise” Through It’s Consumer Touch Points. MarkED Conclave ‘06. Brand Building 101. Brand Equity. Trust. Making the Promise. Delivering the

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Michael Keller

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  1. Michael Keller Chief Brand Officer American Dairy Queen MarkED Conclave ‘06

  2. Everything Communicates! Building A BrandBy “Delivering the Promise” Through It’s Consumer Touch Points MarkED Conclave ‘06

  3. Brand Building 101 Brand Equity Trust Making the Promise Delivering the Promise MarkED Conclave ‘06

  4. What Is A Touch Point? Any Contact Point Between A Customer And A Brand MarkED Conclave ‘06

  5. Everything Communicates? Yes, Whether We Like It or Not, Or Whether Customers Realize it Or Not. MarkED Conclave ‘06

  6. Everything Communicates Key Implication Brand building extends way beyond ‘Marketing’. In some cases, ‘Marketing’ might be one of the least important ways to build a brand… Or …Maybe ‘Marketing’ really encompasses all company activities/functions that impact the brand and consumer in any way MarkED Conclave ‘06

  7. Think Beyond Beyond Beyond Product Service To the Experience a Customer Has With All of a Brand’s Touch Points MarkED Conclave ‘06

  8. Putting It All Together Through all of a brand’s touch points, the “product” and the consumer’s experience with it, must deliver on the brand promise to ensure the desired emotional connection is made with a customer. Who’s job is this? Each function that ‘owns’ a touch point. Who should oversee/lead this? Brand Champions…”Marketers” MarkED Conclave ‘06

  9. A Little Happy DQ History • A 66 year old brand with 5,500 units over 4,000 franchisees and $2.5 billion in sales • Born from a remarkable epiphany/invention • Began “franchising” before franchising was born • Became synonymous with treats and a wholesome, happy America • Acquired by Warren Buffet in 1998 • Today enjoys universal brand awareness • Most importantly, the brand elicits a strong, emotion-filled response…a smile and a story MarkED Conclave ‘06

  10. A Little Scary DQ History • A highly fragmented food system with low food awareness and credibility • An old, tired, diverse retail asset base (locations, facilities, operations) MarkED Conclave ‘06

  11. Flat Top

  12. A Little Scary DQ History • A highly fragmented food system with low food awareness and credibility • An old, tired retail asset base (locations, facilities, operations) • A multi-decade period of stagnation • A high-level of mistrust and animosity between franchisee and franchisor • A rapidly shifting and increasingly competitive landscape • A brand teetering on the edge of irrelevance MarkED Conclave ‘06

  13. A New Approach:Corporate/Enterprise • New CEO • New vision and business goals including a focus on becoming a food player • New strategy-driven structure • New outside talent hired, internal talent promoted • New business units and department plans • New trust-building posture with franchisees MarkED Conclave ‘06

  14. DQ Brand Touch Points Brand Experience Product/Menu Product Quality “Advertising” Speed of Svc. Locations Facility (Ext.) Customer Svc. Facility (Int.)

  15. DQ Brand Positioning

  16. A Smile and a Story • Everywhere we go, we always get “a smile and a story” • There is rare/powerful emotion for the DQ brand • This is the essence of who we are, it’s what makes us “Something Different” • Beyond products, advertising, store design, operations and customer service, this may be our true long term strategic advantage, but… • …only if we recognize it, nurture it and build it in everything we do, every day, in every store, with every customer MarkED Conclave ‘06

  17. Workin’ the Wheel MarkED Conclave ‘06

  18. A New Approach:Brand Team • New strategy demanded new structure which required new talent • Defined and began leveraging and executing against new brand identity and positioning • Challenged and elevated every key element of the Marketing Mix: • Menu/Product Strategy • Calendar Strategy • Advertising: Creative and Media Strategy • Promotion Strategy • Merchandising Strategy • PR Strategy • Restructured/Re-focused franchisee leadership MarkED Conclave ‘06

  19. Creative Reel Highlights MarkED Conclave ‘06

  20. Some Business Results • 25 consecutive months of comp sales growth: July ’03 to July ’05 • 33 of the last 36 months of comp growth • Leading national QSR in 2004 in comp sales growth (beat McD’s and SBUX) • Award winning advertising • AUVs up 25% ’05 v. ‘01 • Ad Funds at highest levels • Franchisee profitability at highest levels • Franchisee Investment beginning to occur MarkED Conclave ‘06

  21. That’s The DQ Story,How Can You Teach It? • What is a given brand’s promise? • What are it’s touch points? • Is it delivering on it’s promise through all of them or are there plans to do so? • Is there functional alignment between teams that touch the consumer and in turn shape the brand? • Is the company/team structured the right way? • If yes, does it have the right talent in the structure to achieve it’s goals? • What is the brand champion doing to provide the leadership necessary to build and protect the brand through all of it’s touch points? MarkED Conclave ‘06

  22. Thank You! MarkED Conclave ‘06

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