Everything you need to define a brand in one place

1. Everything you need to define a brand in one place Updated 5.10.08

2. Why A Brand Strategy Toolkit? Strong brands never happen by accident. Yet only 53% of firms say they have a long term brand strategy in place.(1) • Only one fourth of marketing and advertising professionals "...can clearly articulate (their) company's brand position to... clients, customers or prospective clients.“ (2) • Often, what is missing is a shared set of tools for creating and implementing an effective brand strategy. Prophet, Best Practices Survey, 2002 Louws Management Corporation Survey, 2007

3. What is Brand Strategy? A brand strategy is simply a plan for developing a coherent brand. It provides the means for systematically creating differentiation and consumer appeal by empowering better brand decisions across the organization. • An effective brand strategy influences the total operation of a business to ensure consistent brand experiences for the customer. “...ideally, the brand will make black and white decisions not just at the top of the house, but also all the way down the line.” David F. D’Allesandro, Brand Warfare: 10 Rules for Building the Killer Brand, 2001 “There is no tool better than the brand for uniting the forces and the stakeholders inside and around your company.”Thomas Gad, 4-D Branding: Cracking the Corporate Code of the Network Economy, 2001 “The role of brands has evolved; brands are now company DNA, the spark from which all corporate life grows.” Will Murray, Brand Storm: A Tale of Passion, Betrayal, and Revenge, 2001

4. Brand Strategy and Marketing Strategy Strategic Marketing Process I. Corporate Objectives & Brand Portfolio II. Marketing Objectives III. Brand Strategy Communications Strategy Product and Pricing Strategy Channel and Distribution Strategy IV. Marketing Execution & Monitoring Brand strategy is an integral part of the overall strategic marketing process. It bridges the gap between business strategy, marketing objectives and marketing strategy. • Brand Strategy is separate from the marketing mix. It guides and inform decisions about product strategy, placement, promotion and pricing.

5. Brand Strategy Process The process of creating a brand strategy begins with a brand audit and ends with a plan for executing the brand across all touch points. Brand Audit 1 Target & Insight Competitive Assessment Brand Inventory Points of Parity and Difference Brand Strategy 2 Equity Pyramid Positioning Personality Objectives & Metrics Brand Execution Brand Elements Communications Strategy CRM & Community Building 3 Brand Experience Map

6. Brand Audit Brand Audit Target & Insight Competitive Assessment Brand Inventory Points of Parity and Difference

7. Target Matrix The target matrix helps ensure the brand focuses on the customers and prospects that offer the greatest potential for increased revenue and profitability.

8. Example Target Matrix: Wine Drinkers

9. Target Insight A target insight describes how a meaningful connection can be established between what the brand offers and the target’s explicit or implicit needs. Where to Find Insights • Ethnographicresearch & ‘shopalongs’ • Online communities • Socialmedialistening & ‘netnographies’ • Crowdsourcingandco-creation • Consumerpanels • Neuro-marketing • Customer service • Trends • Motivations/”Sweet spots” • Decision-making process/criteria • Higher level benefits • Image/Identity gaps • New Segments • Unmet needs

10. Target Insight: Wine Enthusiasts Enthusiasts are passionate about the entire wine experience. They enjoy researching what to buy and enjoying wine with friends and family. They like the whole culture of food, wine and knowing how to get the most out of the experience. “So much variety to try. I like to look at labels but I also like to look at “Şarap Dünyası”. I really like to entertain, tasting wine with friends. It’s the best experience.”

11. Target Insight: Dove "90% of women are not happy with the way they look," and they are frustrated with the way beauty is portrayed in our society.

12. Competitive Assessment Competitive assessment describes the customers’ perceived consideration set of alternatives and the brand’s advantages and disadvantages within that set. • TexMex İzmir Competitors • Steak houses, and high end chains that offer good food in an unpretentious setting. • TexMexhas no direct Mexican cuisine competitors outside of İzmir, and very few within İzmir.

13. Points of Parity and Difference • Potential Brand Differences Brand Strengths • Wants and Needs Consumer Needs Our PODs • Vulnerabilities Their PODs POPs • Points of Parity (Category Benefits) a POD’s analysis is to identify what ideas from our brand and competitive brands are most meaningful and potentially differentiating. The purpose of a POP’s analysis is to identify which category benefits are critical for establishing credibility. Competitor Strengths

14. Points of Parity and Difference: Hardware • Customer Needs • Minimize time and effort • Feeling good about the quality of the job • Hardware Store Potential Points of Difference • Knowledgeable Assistance • Feeling empowered/confident • Feeling valued, important to Westlake Ace Brand Strengths Consumer Needs Competitor Strengths • Hardware StorePoints of Parity • Selection – meets requirements - satisfies • Cost efficient • Time efficient • Vulnerabilities • Wide and deep selection enables choices

15. Brand Inventory A brand inventory identifies existing or potential assets that can be leveraged or gaps that need to be addressed to build or create sustainable points of differentiation. Where to Find Assets or Gaps • Heritage/Historical Positionings (existing products) • Brand Identity logos, icons or symbols • Secondary associations • Gaps between identity and image • Organizational strengths • Brand Values/Vision • Product performance claims, proprietary technology/patents • Third-party ratings or endorsements

16. Brand Inventory: Blockbuster Blockbuster (a moviehouse) is relatively ‘faceless’, with no strong personality, either positive or negative. Its own customers think of it as big and corporate. • Brand Imagery • “Corporate” • “Well-known” • “Familiar” • “Comfortable” • “Institution” • “Dinosaur” • “Old” • “Dull” Selection of movies Familiar Comfortable Solid Enjoyment Relaxation Convenience Family Fun Experience Entertaining

17. Brand Strategy Brand Strategy Equity Pyramid Positioning Personality Objectives & Metrics

18. Brand Pyramid Resonance Consumer Feelings Consumer Judgments Brand Imagery Brand Performance Salience The brand equity pyramid outlines the basic building blocks of what the brand should stand for – brand vision, brand positioning, and brand personality and brand measurement. Brand Equity Pyramid Relationship Response Meaning Identity

19. Example Brand Pyramid: Kavaklıdere Egeo Resonance The wine I’m proud to share. Consumer Judgments Quality wine Authentic, genuine Consumer Feelings Confident, Discerning, savvy Brand Performance Soul not overridden by process. Brand Imagery Accessible, not snooty wine for discerning wine lovers. Salience Kavaklıdereis a high quality wineeveryone can enjoy. Brand Equity Pyramid Relationship Response Meaning Identity

20. Brand Positioning Statement A brand positioning statement describes how the brand will communicate with a specific target group to create a sustainable competitive advantage. For (Target), (Brand/Company) is the only/best (consumer frame of reference) that (statement of key benefit or guiding value), because/by (reason to believe, key credibility point). Evaluation Criteria: Brand Fit, Customer Relevance, Uniqueness, Sustainability, Credibility

21. Positioning Example: DeWalt To the tradesman who uses his power tools to make a living and cannot afford downtime on the job, DeWalt professional power tools are more dependable than other brands of professional power tools because 1)they are engineered to the brand’s historic high-quality standards 2)they are backed by Black & Decker’s extensive service network and guarantee to repair or replace any tools within 48 hours.

22. Brand Personality Brand personality describes how a brand behaves --- what it does and how it does it – so that the brand always acts consistent with its values. Brand personality enhances target appeal and provide further differentiation. The FIVE CORE DIMENSIONS OF PERSONALITY Sincerity (down to earth, honest, real, wholesome, cheerful) Excitement (daring, trendy, spirited, cool, imaginative, up-to-date) Competence (reliable, intelligent, successful, leader, confident) Sophistication (upper class, charming, glamourous, good looking) Ruggedness (outdoorsy, tough, masculine) What Brand IS: What Brand ISNOT:

23. Brand Personality: TexMex What TexMexis: Friendly Fun Sophisticated & Contemporary Spirited Authentic What TexMexis NOT: Fancy Traditional Pretentious or stuffy Take itself too seriously

24. Brand Execution Brand Execution Brand Elements Communications Strategy CRM & Community Building Brand Experience Map

25. Brand Elements • Brand Name • Brand Logos and Icons • Colors • Symbols • Music/Earcons • Celebrities or Personalities • Advertising slogans and jingles • Brand Alliances/Secondary Associations • Co-branding • Licensing • Sponsorship • Event Marketing • Celebrity Endorsement • Third-party Endorsements

26. Brand Experience Delivery A brand experience map describes the points of interaction that influence customer behavior and brand perceptions through the customer lifecycle. It helps identify and prioritize high-impact customer touch points, sometimes called ‘moments of truth’. Intrinsic (Use) In the store At home Customer Initiated Web Store Customer Service Unexpected Third party endorsements Word of mouth News Company-Initiated Signage Advertising CRM

27. Community Building Often, the most effective way to connect customers to the brand is to connect them to each other. ‘Brand communities’ help define user image and distinguish brand users as part of a special group. • Community building tools • Social networks • Blogs • Refer a friend • Product ratings • Live chat • Events • Panels and surveys

28. Conclusion Powerful brands built over time through careful strategic management. A clear brand strategy is essential for creating, building and sustaining a powerful brand. Brand strategy requires knowledge of customers’ current understanding of the brand, and a vision of how that understanding needs to evolve in order to meet business goals. “A brand is a customer’s understanding about a product, service, or company. It’s not what you say it is, but what THEY say it is.” --Marty Neumeier, author, “Zag”

29. Brand Resources • Brand Strategy • “Strategic Brand Management” (3rd Ed.) by Kevin Lane Keller • “A New Brand World” by Scott Bedbury • “The Brand Gap” by Marty Neumeier • “The Culting of Brands” by Douglas Atkin • “Building the Brand Driven Business” by Scott M. Davis and Michael Dunn • Brand Experience • “The Culting of Brands” • "The Experience Economy: Work is Theatre" by James Gilmore • “Managing The Customer Experience” by Shaun Smith and Joe Wheeler • “Uncommon Practice” by Andy Milligan and Shaun Smith • “The Disney Way” • “The Nordstrom Way” • “The Starbucks Experience” • “A Piece of the Pie: The Story of Customer Service at Publix” • “The New Gold Standard (Ritz Carlton)”