2011 777 - adding value to your brand and business
DESCRIPTION
As a business owner or leader, you are constantly subjected to competition from many sources. Falling victim to the demands of today's market can leave your company unprepared when priorities begin to collide. Whether you are a small or large business, owner or employee, consultant or advisor, working ON your business rather than IN your business will help you begin to build value in your brand. This panel of seven experts will share seven simple ideas and tips that any company can immediately implement to add value to their brand and business using social media, new marketing ideas and other brand building techniques.The seminar is organized by UVM's Vermont Family Business InitiativeTRANSCRIPT
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7 Experts – 7 Tips – 7 Minutes
Adding Value to Your Brand and Business
May 25, 2011
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Ground rules:
1. Each EXPERT will have SEVEN MINUTES to share their TIP.
2. A one-minute warning will sound.
3. Once the signal sounds, no more TIPS!
4. Please hold all questions until the end.
5. There will be approximately 30 minutes for questions and answers after all have shared.
6. Questions should be directed to the moderator.
7. Please keep track of TIPS on the back of your info sheet.
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Creating CommunityWith Social Media
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Vermont has an advantage when it comes to business:
Community
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As You Build Your Brand Within Your Community, Build It In an Online Community.
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Why Do it?
-Spread the word of your business-Get referrals-Network-Get new ideas-Public forum for good customer service -You can choose your level of involvement and go at your own pace
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The Tools Are Free and Easy:
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Online connection creates a FACE & a VOICE behind your brand.
Online connection creates a FACE and a VOICE behind your brand.
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The Voice of Magic Hat
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-People like feeling as if they’re a part of something --> Community.
-Magic Hat created an online community at MagicHat.net (The People’s Place)
-Then we got involved with Facebook and Twitter, and further grew our online presence in an organic way.
-We constantly INTERACT with our followers. We ask THEM what beers they want, what they like/dislike, where we should conduct promotions…
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Why use Social Media?
-51% of those following a brand will make a purchase
-140 million people in the U.S. are on Facebook, 40% of whom follow a brand.
-60% of Facebook users are more likely to recommend a brand they follow.
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Why Use Social Media?
Why use Social Media?
-61 million people in the U.S. use Twitter, 25% of whom follow a brand.
-67% are loyal consumers of those brands.
-79% of Twitter users are more likely to recommend a brand they follow.
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Some More Numbers
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What Can You Do to Get Involved?
-Join a social network and get to know how it works.
-Follow similar brands and learn from them.
-Ask your friends to share your information
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Show your customers that you’re online by branding your store, merch, packaging, etc.
What Can You Do to Get Involved?
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These small symbols are all it takes:
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There Is One Key to an Online Presence:
There is One Key to an Online Community Presence:
CONTENT!
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-Use your Voice and your Face as a connection point to your consumers.
-Plan to update your community pages on a consistent basis.
-Ask Questions of, Listen to, Engage Your Followers!
-Offer people something.
-Anything relevant is fair game.
-Don’t be a robot. Be human. Speak to people online as you’d speak to them face-to-face.
Content!
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Invest However You Want!
-You can reach someone in 5 minutes, or you can reach someone in 2 hours. It’s up to you.
-If you’re a small business, you don’t need to hire someone specifically for social media.
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If you’re thirsty after the Expo, head to the brewery for free samples, growlers
and tours!
Cheers!
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Branding: sum total of parts
A brand is the sum total of the thoughts, feelings, associations and expectations a prospect or customer
experiences when exposed to any aspect of a company’s product or service, including its name, logo, the actual
product experience, word-of-mouth, marketing, etc.
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Baxter’s Sandwich Shops
FreshCreativeFunNaturalHome-madeLocalFast/convenient
CharitableFamily-ownedUnexpectedDeliciousGood valueFriendlyClean
DistinctiveOrganicTech savvyHealthyKid-approvedCustomer focusSincere
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“The art of sacrifice”
Desirable Supportable Ownable Sustainable
“The art of sacrifice”
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Baxter’s Sandwich Shops
FreshCreativeFunNaturalHome-madeLocalFast/convenient
CharitableFamily-owned
UnexpectedDeliciousGood valueFriendlyClean
DistinctiveOrganicTech savvy
HealthyKid-approvedCustomer focusSincere
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Baxter’s Sandwich Shops
What makes Baxter’s special is our dedication to using only the freshest ingredients, our wildly unexpected flavor combinations, and our commitment to making you a truly healthy meal.
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What does it take to get there?
• Invite the right people (key stakeholders) into the process – too many cooks… well, you know…
• Start big and broad, then do the hard work – the art of sacrifice
• Document what you’ve done in a statement – a declaration of your brand DNA
• Tell everyone in your organization and make sure they can articulate it – even if it is in their own words
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Investors will value a strong brand
higher when it comes time to sell your
business.
Tip #1
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Drivers of Company Value
1. Profitability• Free Cash Flow (EBITDA)
2. Stability of Profitability• Reduced investment risk
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0 1 2 3 4 5
Profits
Years as Customer
Base profit
Increased purchases
Reduced operating costs
Referrals
Price premiums
$ D
olla
rs
Source: Zero Defections: Quality Comes to Services, HBR
Reasons Powerful Brands are More Valuable
Loyal Customers =• Higher profits• More predictable revenues, less
risk
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Loyal Customers Pay More
Example: Generic vs. Popular BrandsExample: Generic vs. Popular Brands
Customers typically pay 5-10% higher for brand-name products
Advil
200 mg Ibuprofen tablets (50)
$6.99
Equaline
200 mg Ibuprofen tablets (50)
$5.29
32%Higher Price
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Revenues $20 M
Expenses ($18 M)
EBITDA $2 M
EBITDA Multiple 5.0 X
Company Value $10 M
46
Weak Brand
Calculating Company Value
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Revenues $20 M $22 M
Expenses ($18 M) ($18 M)
EBITDA $2 M $4 M
EBITDA Multiple 5.0 X
Company Value $10 M
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Weak Brand Strong Brand
Higher Prices & Cash Flow
10%
100%
HigherPrices
GreaterCash Flow
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Revenues $20 M $22 M
Expenses ($18 M) ($18 M)
EBITDA $2 M $4 M
EBITDA Multiple 5.0 X 5.5 X
Company Value $10 M
48
Weak Brand Strong Brand
Lower Risk, Higher Multiple
10%
10%
100%
HigherPrices
GreaterCash Flow
LowerRisk
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Revenues $20 M $22 M
Expenses ($18 M) ($18 M)
EBITDA $2 M $4 M
EBITDA Multiple 5.0 X 5.5 X
Company Value $10 M $22 M
49
Weak Brand Strong Brand
Increased Value
10%
10%
120%
$12 M Additional Value
100%
HigherPrices
GreaterCash Flow
LowerRisk
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Strong Branding Contributes to Shareholder Value
Brand contribution to shareholder value can be over 50% in the case of marketing heavyweights like Coca-Cola, McDonald’s, and Disney. “Brand Valuation” in Brands and Branding
The Economist Series, Bloomberg Press
Brands account for more than 1/3 of shareholder value.
“Brand Valuation: The Financial Value of Brands”JP Morgan & Interbrand
On average, a corporate brand accounts for 8.5% of a company’s market cap.
Speaking in Numbers, The Language of Bottom Line Business
David Stewart, The Univ. of Southern California
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The Golden Rule
“Do unto others as you would have them do unto you”
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52
The Golden Rule
“Do unto others as you would have them do unto you”
“Do unto others as they would have you do unto them”
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Branding is not just about what you
think. It’s about what your customers
think.
Bonus: Tip #2
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Overview
What is brand personality?
Why use brand personality?
How do you create brand personality?
How does brand personality create brand equity?
Brand Personality Models
Leveraging Brand Personality
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Brand Personality vs. Brand Identity?
Brand Identity: Characteristics Shared with Others – Race, Religion, Place You Live, Culture
Being Who You Are
Following Your Own Path
Brand Personality: Combines Identity and Image – Externally Focused
Becoming Who You Should Be
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What is Brand Personality?
Set of Human Characteristics Associated with a Brand
“Who” is a Brand – Traits, Qualities
How the Brand Behaves Externally
“Likeability” Factor
• Brand Dimensions• Sincerity• Excitement• Competence• Sophistication• Ruggedness
• Brand Traits• Down to earth• Wholesome• Honest• Cheerful • Daring• Imaginative• Spirited• Reliable• Intelligent• Successful• Charming• Upper Class• Up to Date• Outdoorsy• Tough
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About Brand Personality
Like Human Personality – Distinctive, Enduring – Built Over Time
Outcome of Consumer’s Experiences with Brand
The “Weighted Average” of Past Impressions
Sets the “Expectation” Stage
• Personality traits are what the brand will live and die for
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Why Use Brand Personality?
Enriches Understanding of Consumer Perceptions, Attitudes towards Brand
Contributes to Differentiated Identity
May Be Leveraged Beyond Brand to Context Product and Experience
Guides Communication Adding Texture; Richer Meaning
Creates Brand Equity
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How To Create Brand Personality?
Product-related Characteristics as Drivers
Product Attributes Affect Personality
User Imagery
Events, Activities, Sponsorships
Brand/Business Age
Symbol
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How Brand Personality Creates Brand Equity
Self-Expression Model
Relationship Basis Model
Functional Benefit Representation Model
Self-Expression
Functional Benefit
Representation
Relationship-Basis
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Self-Expression Model
Brands as Vehicles to Express Self-Identity
Consumer’s Self-Identity - Actual/Real Identity or Ideal/Aspirational Self
Feelings Engendered by Brand Personality
Brand = Badge
Brand as Part of the Consumer’s ‘Self’ or Oneness
Isis Respects and Values Women as They AreReal Women Engaged in Outdoor ActivitiesAuthentic, Informed Women in Mutually Beneficial Relationship
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Relationship-Basis Model
Consumer May Not Aspire to Possess a Personality Trait Yet Seeks a Relationship that Evidences the Trait
Elements Affecting Individual’s Relationship with a Brand
Brand as a Person
Type of Person the Brand Represents
• Banks, Insurance Companies, Financial Investment• Competent, Serious,
Stable• Northfield Savings Bank
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Functional Benefit Model
Brand Personality as a Vehicle for Representing Functional Benefits and Attributes
Visual Symbol or Image Exists that Creates or Cues Personality
Country/Region of Origin Can Add Credibility to Identity
Quality Cue
Point of Differentiation
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Leveraging Brand Personality
Vehicle for Customers to Express their Identity
Represents and Cues Functional Benefits and Product Attributes
Sustainable Point of Differentiation – Difficult to Copy Personality
Propels Your Brand to Public Consciousness – Flock or Flee
Word of Mouth is the Best Marketing Medium
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Founded in 1971 in Kilkenny, Ireland by Simon Pearce 1980 – Simon moves to Vermont and begins renovation of the old
woolen mill in Quechee 1981 – Simon opens glassblowing workshop at the Mill in Quechee 1993 - opens 32,000 square foot manufacturing facility in Windsor, VT 1999 – opens 190,000 square foot manufacturing and warehouse
facility in Mtn. Lake Park, Maryland 2011 – the Mill in Quechee welcomes over 300,000 visitors Currently eight company-owned retail stores 500 wholesale partners that carry our products 260 employees nationwide
Simon Pearce Background
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AN ANECDOTE
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Goal: Your Brand Voice should build confidence and consistency throughout the company, across all channels and levels. The Brand Voice aligns the entire value chain to use the same “central currency” and facilitates clear and directed communication.
Elements of the Brand Voice• Voice Tone• Desired Impact• Brand Personality• Personality traits that don’t represent your brand• Elements of History (how does history impact your messaging)
Defining Your Brand Voice
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How and Where do you use your Brand Voice in “real life”?• Social Media• Press material• Email Campaigns• Internal “speak”• Training• Customer Service• Sales • Collateral• Copywriting• Web content creation
Defining Your Brand Voice
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The point is that Brand Voice becomes the guardrails and guideposts for how you tell your story.
Defining Your Brand Voice
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Tone: Real, Approachable, Connected to our environment and present in the moment. We never try to be anything that we are not. We are helping customers enrich their “story”.
Impact: Eye-Catching/Arresting, Striking, Head-turning, Provocative, Surprising, Wow, Excite, Inspire
Personality: Nimble, Flexible, Approachable, Highly Responsive, Attentive, Stimulating, Selectively Whimsical, Confident, Advisory, Inspirational, Engaging, Great Listener, Valued Counsel (coach), Magnetic, Charismatic
Personality Traits We Are Not: Museum-like, Unapproachable, Stiff, Dry, Fragile, Overly-academic, Bureaucratic, Quiet, Reserved
Elements of History: History informing the future, history of location, history as a guidepost for future decisions. History of the Mill is our DNA
Defining Your Brand Voice
Simon Pearce Brand Voice
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1. Define the goal of your brand voice2. Determine how and where will you use your brand
voice3. Define the elements of your brand voice
Re-cap
Defining Your Brand Voice
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Questions?
• Please direct either towards a specific panelist or in general for any to answer
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THANK YOU FOR ATTENDING TODAY
• Copies of today’s presentation are available for sharing or download at:• www.twitter.com/fambiz2point0 • www.slideshare.com/dvdv