Meaningful Difference M A R K E T I N G S T R AT E G I E S T O G R O W T H E VA L U E O F Y O U R B R A N D
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1 Meaningful Difference M A R K E T I N G S T R AT E G I E S T O G R O W T H E VA L U E O F Y O U R B R A N D
2 What is a brand? A set of associations (ideas, memories and feelings) in the mind of a consumer
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5 What makes a brand valuable? I N C R E A S I N G T H E L I K E L I H O O D that a consumer will buy I N C R E A S I N G H O W M U C H consumers will pay Successful brands build associations that deliver these commercial benefits
6 This learning was pooled to drive a ground-breaking R&D project in 2012 Initial Pilot 5 countries 12 categories 21 studies 300+ brands 8000 consumers Included Respondent level link to actual purchase data Further development work through BrandZ: >40 countries, >5000 brands, >300,000 consumers and neuroscience metrics 6
7 The power of the brand to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient the brand is to consumers.
8 The power of the brand to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient the brand is to consumers. MEANINGFUL Consumers feel an affinity for the brand or think it meets their needs
9 The power of the brand to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient the brand is to consumers. MEANINGFUL Consumers feel an affinity for the brand or think it meets their needs DIFFERENT Feels different from other brands or sets the trends for the category
10 The power of the brand to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient the brand is to consumers. MEANINGFUL Consumers feel an affinity for the brand or think it meets their needs DIFFERENT Feels different from other brands or sets the trends for the category SALIENT Comes to mind quickly and readily when activated by ideas relating to category purchase
11 The power of the brand to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient the brand is to consumers. MEANINGFUL Consumers feel an affinity for the brand or think it meets their needs DIFFERENT Feels different from other brands or sets the trends for the category SALIENT Comes to mind quickly and readily when activated by ideas relating to category purchase BARRIERS FACILITATORS IN-MARKET
12 MEANINGFUL DIFFERENT SALIENT $185b Apple: unique personality and tangible product innovation = differentiation worth paying for Avr = 100 $78b Coca-Cola: first to mind for billions of thirsty people = dominant volume share for impulse category 2012 Index across all global categories and countries (Apple in 34 categories. Coca-Cola in 20) Avr = 100
13 MEANINGFUL DIFFERENT SALIENT For 3 points A Avr = 100 Which brand is which?? B Avr = 100 C Avr = Index across all global categories and countries
14 MEANINGFUL DIFFERENT SALIENT A Avr = 100 B Avr = 100 C Avr = Index across all global categories and countries
15 To be truly business relevant measures of equity need to tie directly to financial outcomes. So, we combine meaningful, different and salient into headline measures of equity that align to commercial outcomes. MEANINGFUL Consumers feel an affinity for the brand or think it meets their needs Premium DIFFERENT Feels different from other brands or sets the trends for the category Power SALIENT Comes to mind quickly and readily when activated by ideas relating to category purchase Potential
16 Business outcomes from meaningful, difference and salience Power Premium Potential VOLUME SHARE = SELLING MORE PRICE INDEX = SELLING AT A HIGHER PRICE VALUE SHARE GROWTH = SELLING AGAIN IN THE FUTURE
17 Case Study - 17
18 In 2004, O2 turned the UK mobile market on its head, with a campaign that sought to put consumer needs front and centre World revolves around you 1. Whole business uniting behind shared brand KPIs ahead of short-term sales KPIs. 2. Leveraging every consumer touchpoint 3. Continual evolution of the offer and communications 18
19 O2 moved from 3rd to 1st in 6 years POWER SHARE MARKET SHARE MEANINGFUL 127 o2 VF Orange
20 Case Study - 20
21 Red Bull have consistently fought off the challenge of bigger spending competitors. Launch Strategy: We don t bring the product to the people. We bring people to the product Dietrich Mateschitz, Red Bull Co-founder 1. Selective launch distribution: Specialist, local sales reps identify hot-spots where opinion formers hang-out. Approach DJs, bar tenders and trendsetters Leave empty cans on tables and in bins Shops near universities and gyms 2. Sampling and education, but keep it Edgy! Wings team, branded cars Drives trial, educates and creates Buzz Student brand managers Must be trendsetters. In the UK, Red Bull still spend as much on sampling as on ATL activity 3. Sponsor music events, parties and extreme sports Became known as: Liquid Cocaine Speed in a can Liquid Viagra The rumours never hurt Dietrich Mateschitz
22 As penetration grows, so does the scale of the activity, but it s always unusual, edgy and true to the brand philosophy determine your point of difference, then decide the best way to amplify it, not the other way round!
23 And they don t worry about pleasing all the people all of the time +30% +300% Price premium over branded alternatives Price premium over shop s own MEANINGFUL DIFFERENT SALIENT Avr = so they are not meaningful to everyone. But they are certainly different and so can justify a huge price premium to those who do find them meaningful
24 Case Study - 24
25 British Airways is the airline most synonymous with the category Airline = BA Needs = Competitive price = EasyJet Traditional unaided awareness Needs based salience but by owning such an important need state, EasyJet is as likely to come to mind when people actually seek out their next flight 25
26 But as other airlines challenged Easyjet s ownership of price, EasyJet needed to shout a little louder 26
27 Europe by Easyjet helped put them back top-of-mind 160 Salience +18% European seats sales +104% Share price 140 = 4:1 campaign ROI
28 The ultimate benefit is financial success Meaningfully different and salient brands Capture 5x Volume share Command A 13% Price premium Grow 4x Value share Source: Shopcom panel data merged with equity survey responses consumers, 65 brands, 4 categories. Source for Value Share Growth: MB validation dataset, including 350 brands from diverse categories (CPGs and non CPGs).
29 What s best for my brand? 1. Role of brand: Volume or Margins? 2. Long or short-term? 3. Category dynamics 4. Where your brand lacks? MEANINGFUL DIFFERENT SALIENT 29
30 Other things to consider: 1. Brand strategy Which image associations will work for me? What s the size of the prize? 2. Unconscious drivers of brand decisions What about raw emotion? And instant / intuitive meaning? 3. Tactical in-market levers purchase window How well do we convert sales at point of purchase? Which point of purchase levers could deliver more for me? What s the size of the prize?
31 Brand equity deep-dive research (eg BrandDynamics) for depth of exploration in these areas and quantification of the expected return MEANINGFUL Consumers feel an affinity for the brand or think it meets their needs DIFFERENT Feels different from other brands or sets the trends for the category SALIENT Comes to mind quickly and readily when activated by ideas relating to category purchase BARRIERS FACILITATORS IN-MARKET
32 Deep-dive image diagnosis and simulation to inform strategy The flexible and bespoke models reveal: 1. How image statements group into unique territories in your category. 2. How each brand performs on the statements and overall territories. 3. The importance of each statements and territory. 4. The impact a given statement could have on image territories and overall equity. +5% +1% +3% +3% +1% +2% +1% 32
33 Instinct and Intuition Automatic, Easy, Fast Reflective, deliberate processing Rule-based, Effortful, Slow 33
34 Which one of these images creates the strongest instinctive emotional response? 34
35 Which one of these images creates the strongest instinctive emotional response? 35
36 The Cadbury brand adds to chocolate s instinctive appeal Impact of brand on intuitive emotion within a category TESCO CHOCOLATE CHOCOLATE CADBURY The instinctive emotional reaction can be a big part of what creates volume demand and justifies a price premium EP Context Study 36
37 But brand equity is not the only way to generate sales Diverted 5.5% Review packaging. Packaging losses, particularly to Fructis. Total of $15m per year Converted 8.0% Continue with promotions and great fixture positioning Fulfilled 11.4% Elevate functional advantages to emotional benefits Make hair look really good Make you feel confident about yourself 37 An holistic research programme will help you understand all aspects of the consumer choice. To inform long-term brand building and short-term tactical levers.
38 The ingredients for brand driven commercial success MEANINGFUL Long-term brand value comes from: DIFFERENT SALIENT Meaningfully different associations for your brand Instant meaning gives you a head start All for nothing if you neglect the purchase window 38
39 THANK YOU!
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