Chapter4:TheNewBrandBuildingFramework:Destiny­Distinction­Culture­Experiences

Excerptedfrom

John A. Davis, Dean and Professor of Marketing at S P Jain Center of Management, prepared this reading, excerpted from his book Competitive Success-How Branding Adds Value (©2010 John Wiley & Sons). Professor Davis developed this for use in class discussions only. Copyright © 2010 John A. Davis. To order copies or request permission to reproduce materials, contact usa@brandnewview.com, or go to http://www.brandnewview.com. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of John A. Davis and Brand New View.

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Thesubtitleofthisbookishowbrandingcreatesvalue.Chapter2introducedseveral

approachesformeasuringbrandvalue,andalsopointedoutthatthereare

differencesbothinhowbrandvalueisdefinedandmeasured.Morebroadly,the

reasonforbuildingbrandsistocreatevalueforallstakeholders:employees,

management,shareholders,suppliers,customers,strategicpartnersandvaluechain

providers.Aswewilllearninthischapter,therelationshipbetweenbrandsand

customersisparticularlyimportantsincethatiswherethecoreeconomicvalueis

mostvisible.Inthisregard,brandvalue,customerequity,andbrandpurposeare

often,butnotalways,closelylinked.Morespecifically,successfulbrandbuildingis

aboutmakingthebrandmeaningfultocustomersbyunderstandingthejob

customersneeddone(ortheproblemtheywantsolved),designingsolutionsthat

addressthis,thenemployingarangeofmarketingtacticsdesignedtobringthe

customerandthebrandtogether.Abrandbuildingchallengeisthatnotall

customersseethebrandthesamewaynorhavethesameneeds,sofocusingon

brandbuildingaheadofcustomerdevelopmentrisksleadingthecompanyto

produceproductsthathavelittlerelevancetotheirtargetaudiences.Conversely,by

focusingbrandbuildingaroundcustomerequityrisksignoringcompetitor

responses,andmayunder‐emphasizetheintangiblebenefitsassociatedwitha

strongerbrandfocus.

Anothercomplicatingfactorisdecidingtheproperbrandarchitecture,asdiscussed

inChapter3.Thisexplainedimportantbrandbuildingquestions,suchas:Isthe

brandabrandedhouse,likeGE,inwhicheverymajordivisionwiththecompanyis

labeledas‘GE(nameofbusiness)’andisthereforesubsumedunderacommon

identity;orahouseofbrands,likeProcter&Gamble,inwhichdozensofwell‐known

individualbrandsaremanagedwithinproductcategories(andP&Gessentially

remainsinvisibletotheconsumer)?Butbeforedeterminingwhichbrand

architectureisused,wemustfirstapplythebranddefinitionfromChapter1toa

newplanningframeworkthatencompassesboththeinternalandexternal

dimensionsofabrand.Thisframeworkappliestoallbrandtypes,fromcorporateto

product.Thekeydistinctionisthelevelofcomplexityrequiredtobuildthebrand.

Forexample,aglobalbrandlikeGEisavast,complexentity,withthousandsof

employees,products,offices,andassociatedbusinessactivities.GE’ssuccess

dependsonnumerousinternaloperatingandexternalcompetitivefactors,

particularlywhethertheGEcorporatebrandhasmeaningandsignificancefor

employees.Atthesametime,asmallproductbrand’ssuccess,suchasSakaeSushi(a

restaurantchainbasedinSingapore),alsodependsonthesamefactors,especiallya

clearunderstandingofthebrand.Asyouwilllearn,GEcanbenefitfromthenew

brandframeworkintroducedinthischapter,ascanasmallerproductbrandlike

SakaeSushi.Wewillnowturnourattentioninthischaptertoanewbrand

frameworkwithfourelementscalledDestiny­Distinction­Culture­Experiencesthat

describeskeybrandbuildingactivities,providingablueprinttohelpbrandplanning

anddecision‐making.Thesubsequentsixchapterswilldiscusseachofthefour

elementsindepth.Chapter5willfocusontheimportanceofidentifying,

understandingandusingthebrand’sDestinytoguideitslong‐termdirection.

Chapter6willdiscusstheimportanceofbrandDistinction,howtodevelopand

nurtureit,andhowitactstopositionthebrandinthemarketplace.Chapter7is

dedicatedtounderstandinganddevelopingbrandCulturewhich,astheterm

implies,suggeststhatsuccessfulbrandshaveasetofmoresandpracticesthat

animatetheworkenvironmentandultimatelysupporttheexternaldeliveryofthe

brand.Chapters8‐10discussesbrandExperiences,whicharethemanyways

brandscanrelatetothemarketplaceandtheircustomerswithin.

NEWBRANDFRAMEWORK

UnderstandingtheBigPicture

Chapter2showedthatbrandvalueisrecognizedfourways:financial,trusted

reputation,societalrelevance,andorganizational,andincorporatingtheseinto

brandbuildingstrategiesandactivitieswillcreateamorewellroundedbrand.But

theannualbusinessplanningcycleisnotastaticexerciseinvolvingone‐time

marketingtactics.Theprocessofbrandbuildingneverstops.Brandbuilding

requirescontinualadjustment,fine‐tuning,andsometimesevensignificantstrategic

andtacticalchangestoensurethebrandstaysrelevant.Suchshiftingmayseem

counterintuitiveatfirstsincecompanies,andmanagersinparticular,oftenmistake

thefocusonbrandbuildingassimplyascientificmethodologytowhichrigid

adherenceisparamount.Muchoftheresearchandliteratureonsuccessfulbrand

buildingconcernsthetacticalexecution,primarilythroughmarketing

communicationsvehicles.However,suchanarrowfocuscapturesonlytheverytail

endofbrandbuilding.Inpractice,successfulbrandbuildingemphasizesrelentless

andvariedapproachestocreatingadifferentiatedpositioninthemind’sof

customers—differentiationthateventuallyinspiresconsumerstopurchasethe

firm’sproductsandor/services(‘offerings’).Creatingadifferentiatedposition

meansbrandsmustbebothrelevanttoandresonantwithtargetcustomers.

Relevancemeansthatthefirm’sofferingsareappropriatetotheneedsofcustomers,

andresonantmeansthattheofferingsevokefavorableimageryandemotions.To

helpbrandplanning,thischapterwillintroducethenewbrandframeworkthatis

thecoreofthisbook,withsubsequentsectionsandchaptersdevotedtodetailed

descriptionsofeachbrandelement.Aswasoncefamouslysaid,“luckfavorsthe

preparedmind”.Brandsuccessfavorsthosethatareprepared,andpartof

preparationislearningandunderstandingtheproverbial‘bigpicture’ofthefirm’s

brand,asseenbythebrand’sstakeholders.

BrandFrameworkElements

Inyearspast,brandingwasprimarilyanexternallyfocusedsetofmarketing

communicationactivitiescomprisedofadvertising,selling,PR,andpromotion

(includingpricediscounts,bundledofferings{2for1},giveaways,samples…).

Havingacustomerfocusoftenmeantrelentlesslydirectingbrandmessagestoward

atargetaudience(suchasconsumerproductcompanies’emphasisonhousewives

intheU.S.inthe1950sand1960s),hopingtoinspirepurchase.These

communicationswereoneway,sinceconsumerscouldnotresponddirectly(unless

itwasadirectresponsead,suchasadirectmailofferoratelevisedphonenumber

askingconsumerstocallwithinalimitedtimetoreceiveaspecialdeal).

Companies,consumers,andmarketinghaveeachchangedsignificantlysincethose

times.Successfulbrandsarenowtheresultofacomplexsetofplansdirectedboth

insideandoutsidethefirm.Researchhasshownthatcompanieswithstrongbrands

havedevelopedreputationsforunderstandingtheircustomers,deliveringrelevant

products,promotingreliablevaluechaincollaboration,whilealsosimultaneously

buildingthestrengthandcompetenciesinsidetheirownorganization.Successful

brandsarebornfromaclearsenseofdirectionthatarticulateswhatmakesthe

brandand/orcompanyunique,attractsemployeesthatarebothtalentedand

devotedtothecompany’sefforts,andshapescustomerrelationshipswiththefirm.

Fourmainelements,showninFigure3‐1,guidebrandplanningand

implementation.Thesefourelements,whenproperlypursued,addsubstantiallong‐

termvaluetocompanies,theirbrands,andtheirstakeholders,andtheremainedof

thisbookdescribeseachelementindetail,providingguidancethroughthebrand

buildingprocess.

Figure3‐1:NewBrandFramework.JohnA.Davisbrandresearch2000‐2009

Let’sturnourattentiontoanoverviewofthefourelements:

Destiny

DictionarydefinitionsstatethatDestinyisthehiddenpowerthatcontrols

thefuture.Inthecontextofbrands,Destinyanswersthequestion‘whyisthe

brandhere?’and,assuch,suggeststhatlarger,longer‐termandmorefar‐

reachingfactorsareatwork.Destinydescribesthecollectiveambitionsand

aspirationsforthebrand,servingasaguideforoverallbrandplanningand

implementation.Equallyimportant,Destinyactsasamotivatingforcefor

employees,helpingthemtobetterunderstandhowtheirworkcontributesto

thelong‐termsuccessofthebrand.DestinycanalsobedescribedastheDNA

ofthebrand—essentiallytheuniquecombinationoftraitsandvaluesthat

givethebrandmeaningandareasontoexist.Inthiscontext,Destinyguides

decision‐makingandinspiresprofitablefinancialresultsforthebrand.

Progresstowardachievingthebrand’sDestinyrequiresaregularreviewof

itspositioninthebusinessworldandsociety,includingitsreputation,in

ordertoidentifyandrefinethebrand’suniqueanddistinctivetraits.The

brand’sDestinymustalsoberegularlycommunicatedtoallemployeesusing

avarietyofinformalandformalmarketingmethods.

Inthislatterregard,Destinyservesasaninternalguideforunderstanding

thebrand,meantforallemployees,andisnotanexternaladvertising

campaignorslogan.Destinycannotbeeasilycreatedinbrainstorming

sessions,althoughintheabsenceofaclearDestiny,thoseresponsibleforthe

brandcanandshouldmeetregularlytodiscussandidentifythe

characteristicsthatwouldultimatelyserveasthebrand’sdestiny.Destinyis

nottheproductofaoneortwohourmeeting.Instead,Destinyevolvesover

timeasthebrand’sreputationgrows.

Destinycanbeconveyedusingabrandmantra,vision,ormissionstatement.

KevinKellerdescribesbrandmantrasasa“threetofivewordphrasethat

capturestheirrefutableessenceorspiritofthebrandpositioning.”1Here,the

distinctionbetweenDestinyandbrandmantrasmustbeunderstood.

WhereasDestinyisanall‐encompassingdescriptionofthefirm’smeaning

andultimateambitiondirectedinternallyanddesignedtoanimateemployee

performance,planninganddirection,abrandmantradistillstheDestinyinto

asimplifiedmessage.Brandmantrasarecreatedoncethebrand’sDestinyis

clearlyunderstood.Thereasonforthissequenceisimportant:developinga

brandmantrawithoutaclearsenseofDestinyrisksturningthisvitalbrand

buildingelementintoanexerciseinsloganeering,devoidofsubstantial

meaningoranyconnectiontoalargervision.Brandmantras,vision,or

missionstatementsareshorthanddevicestohelpdescribeexternallywhat

peopleinsidethefirmalreadyunderstand.Whilethespecificwordingof

thesemaychangeovertimetoreflecttermsappropriatetothebusiness

context,theunderlyingDestinyitselfremainsthesame.

Distinction

Distinctiondescribeshowandwhythebrandisdifferentiatedfrom

competitorsand,therefore,ofspecialinteresttothemarketplace.Distinction

isdirectlyinfluencedbythecompany’sDestiny.Animportantpointto

rememberisthatwhileDistinctiondescribesthethinkingandplanningin

supportofcreatingauniquebrand,stakeholdersand,inparticular,

customersdeterminewhetherthebrandisactuallydifferentiated.If

customersrecognizewhythebrandisdifferentand,justasimportantly,

relevanttotheirneeds,thenthebrandownsapotentiallyvaluableplacein

thecustomer’smind.Noamountofcleverlywordedmarketingmessagescan

convincecustomersthatthebrandistrulydifferentunlessthatdifferenceis

clearlyunderstoodbycustomers.Therefore,thenever‐endingtaskinbrand

buildingisdeterminingwhatisneededtothebrandisdifferentiatedand

relevant,especiallyasperceivedbycustomers.

Culture

AswesawinChapter2,organizationisoneofthefourbrandvaluesbecause

havingaclearlyarticulatedbrandhelpsemployeesinsidethecompany

understandbetterhowtheirworkcontributestothesuccessofthefirmand

aligntheirworkeffortsaccordingly.Whenemployeealignmentoccurs,

brandsareabletomoreeffectivelydeliveronthepromisestheymaketo

customers,whichwillpositivelyimpactrevenuesandprofitsandleadto

higherfinancialvalueforthebrand.

Theuseoftheterm‘Culture’isimportanttounderstandwhenbrandbuilding

becauseitdescribesthecustoms,behaviorsandpractices(oftenunwritten)

ofanorganization.Cultureconveysarichsetofrelationshipsandtraditions

abouttheorganizationthatinspirethepeoplewithin.Inthiscontext,brand

buildinghasimportantinternalimplicationsfortheongoingsuccessofthe

firm.Awell‐knownbrand,builtfromaclearunderstandingofitsDestinyand

Distinction,servesasamagnetforattractingthebesttalent,which,inturn,

helpssustainandbuildthecompany’sculture—aculturewhosemembers

havetofulfillthebrand’spromisetothemarket.Ausefulexerciseto

illustratetheimportanceofcultureinbrandbuildingistoaskafirm’s

employeestoselectawell‐knownbrandanddescribeanyassociationsthey

attachtoit.Forexample,ifoneweretoselectAppleandaskcolleaguesto

describeitsculture,responsesmightinclude:creative,innovative,colorful,

anddynamic.Moreoftenthannot,one’scolleaguesarenotlikelytohave

workedatApplebefore,yettheyhaveareasonablyclearunderstandingof

thecompany’sculture.ThisknowledgeistheresultofApplecultivatinga

specificimage,basedonitsDistinction(tomake‘insanelygreat’iproducts)

thatissupportedbyalong‐standingreputation,clevermarketing

communications,andverifiedbytensofmillionsofcustomersaroundthe

world.WecanobserveApple,andmanyotherglobalbrands,andidentifythe

qualitiesweassociatewiththem.Tocasualobservers,abrand’ssuccessmay

appeartobetheconsequenceofclevermarketingcommunications.Butthe

secrettobuildingasuccessfulbrandculturethatyieldsongoingsuccessand

apositivereputationistobeginatthebeginning,wellbeforeanadvertising

campaignisevenconsidered.Everynewemployeerepresentsan

opportunitytobuildand/orchangetheculture.Companytraditionsmustbe

sharedfromonegenerationtothenext,justassocietiesineachcountrydo.

Brandsmustbemarketedinternallyfirstsinceinternalunderstandingand

supportisvitaltodeliveringonthemarket’sexpectations.

Experiences

Theconceptof‘Experiences’encompasseseverythingthecustomerseesand

associatesinconnectionwiththebrand,andiswhereatrustedreputation

(oneofthefourbrandvaluesfromChapter2)iseitherconfirmedordenied.

Valueiscreatedwhencustomersbuythebrand,andvaluetothecustomeris

createdwhenthebranddeliversonthepromisesmadebythemarketing

efforts.*Experientialmarketing,asthisisalsoknown,isaconcertedeffortto

surroundcustomerswithavarietyoftouchpointsthatenhanceandimprove

theirenjoymentofthebrand.Integratedmarketingcommunications,which

willbediscussedlaterinChapter10,isanimportantcomponentin

deliveringpositivecustomerexperiences.Integratedmarketingdescribesthe

coordinationofvariousmarketingcommunicationtools(PR,printand

broadcastadvertising,tradeshows…)intoaconsistentoveralltheme.With

theadventoftheInternet,followedbymobilemediaanddigitaltechnology,

brandscanbecommunicatedinnumerouswaysthatcommunicatenotjust

oneway,aswithprintorbroadcastadvertising,butengagecustomers

throughdigitaltools,suchassocialmedia(Facebook,LinkedIn,MySpace).

Focusingoncreatingbrandexperienceshasanimportantimplication:every

partofthecompanyanditsvaluechainrelationshipsispotentiallya

touchpointthatcanaffectthecustomer’sperceptionofthebrand,either

positivelyornegatively.Assuch,brandbuildingisanenormouslycomplex

taskduetothechallengeofdeterminingtherightcombinationoftouchpoints

thatcreatethebestpossiblecustomerexperience.Thisisfurther

complicatedbythedifferencesacrosscustomersegmentsandcorresponding

needs,necessitatingdifferentapproachestodevelopingcustomer

experiencesthatproducepositiveresults.*Note:Valueisalsocreatedwhenthebrand’sotherstakeholders(suppliers,distributors,shareholders…)viewthebrandfavorablyandincreasetheirsupportofitaccordingly.Suppliers,forexample,mayofferspecialtermstothebrandduetoitshigherstatusandrecognition.Distributorsmightallocatemoreinventoryspaceorpromotionresourcestosupportthebrand,andshareholdersmayincreasetheirholdingsiftheybelievethebrandrepresentslong‐termvalueandgrowth.

UsingtheDDCEFramework

HerearetwoapplicationsoftheDDCEframework:asuccessfulregionalboutique

hotelbrand,JoiedeVivreHotels;andEMC,aglobalB2Binformationstorage

company.

Example:JoiedeVivreHotelsii

JoiedeVivreHotelsisbasedinSanFrancisco,California.FoundedbyCEOChipConleyin1987,thecompanyhasgrowntobecomethelargestindependenthotelierinCaliforniawith35hotels,andthesecondlargestboutiquehotelierintheUnitedStates.Thecompany’sperformancehasbeenexcellent,withrevenuesexceedingUS$250,a75%occupancyrate,anaverageroomrateofapproximatelyUS$175pernight,andtheluxurytosupporttheirownin‐housephilanthropicprogramcalled‘JoiedeVivreGives’inwhicheachhoteldonatesaminimumof$200peryearperroomtoworthyorganizationsintheirneighboringcommunity.ThissuccessoriginatesfromJoiedeVivre’s“uniqueapproachtobusiness,asrepresentedbytheJoiedeVivreHeart”,Cite(websitehttp://www.jdvhotels.com/about/our_heart)whichisbasedonfourprinciples:

1. Creating a Unique Corporate Culture 2. Building an Enthusiastic Staff 3. Developing Strong Customer Loyalty 4. Maintaining a Profitable and Sustainable Business

DestinyJoiedeVivre’sDestinyiscapturedbyasimpleidea:creatingdreamstocelebratethejoyoflife.Thisinfluenceseverythingthecompanydoes.JoiedeVivre’sbrandmantrais“Createjoy”,andall3,500employeesaregivenwristbandswiththismantraonthem.ChipConley,JoiedeVivre’sFounder/CEO,believesthatthecompany’ssuccessispartlyduetobeingameaning­drivenbusiness,asdefinedinhisbookPEAK:HowGreatCompaniesGetTheirMojofromMaslow(©2007Jossey‐Bass).Chipstressesthatemployeeloyaltyisfosteredbyinspiringasenseofcallingtosomethinglargerthanthejob,suchasacause,andthisgivesthebusinessmeaning.Toillustrate,Chipandhisexecutiveshelpedthecompany’shousekeeperscleanrooms.Theexecutiveswerestruckbythestrongsenseofcommunitythehousekeeperssharedandhowthatfosteredateamspirit.Partofwhatmotivatedthiscamaraderiewasthethrillhousekeepersgotwheneverguestscomplimentedthemontheirservice.Chipandhisexecutivesthenconductedabrieftest,askingsomeofthehousekeeperstodoa“half‐assed”jobforacoupleofdays.Hedidn’twantthehousekeeperstoruintherooms,butjustnotbeasdetailed,neatortidy.Afterthetwodays,Chipaskedthehousekeepershowtheyfelt,andtheywerenotashappybecausetheguestswerenotascomplimentary.Thehousekeeperswantedtoreturntothesenseofcommunityandmutualsupportfordoingasuperiorjobontheirrooms,becausetheycouldthengainasenseofgroupsatisfactionforajobwelldone,andregainthepositivefeedbackfromtheguests.Meaning,forthehousekeepers,wasmorethanjustcleaningaroom,itwasdoingsosupportedthe

othersontheirteamandledtocomplimentsfromguests,whichcreatedamorepositiveworkenvironment.DistinctionEachhotelisdistinctivelythemed,ofteninfluencedbyanichemagazine,reflectingthecompany’semphasisonadestination­drivenmarketingstrategy.Forexample,theHotelPhoenixisarockandrollhotel.HotelRexreflectstheliteraryandarttraditionsofdecadespast.TheHotelDelSolisthemedafterCaliforniabeachhouses.JoiedeVivre’sindividualistic,lifestyleapproachtotheirhotelsiscontrarytomoreconventionalhotelbusinessmodelsthatseektoreplicatefacilitydesignsfromonelocationforthesakeofconsistencyforguests.JoiedeVivre’sserviceisalsohighlydifferentiated,emphasizingemployee‐drivendecisionmaking,whichempowersstafftoaddressguestneedsimmediatelywithoutconferringwithsupervisorsandmanagersfirst.CultureJoiedeVivre’semployeesmustbeconfidenttosucceedsincetheyareexpectedtomakedecisionsthatareinthebestinterestsofguests.Thismeansthecompanylooksforacertainkindofindividualwhoiscomfortablemakingon‐the‐spotdecisions.Employeesparticipateinanannual‘workclimate’surveythatseekstheiropinionsaboutwhatitisliketoworkatJoiedeVivre,whatisdonewell,andwhatcanbeimproved.Allemployeesdiscusstheresultsatfollow‐upmeetings,involvingthemdirectlyineffortstomakeJoiedeVivreabetterplacetoworkeveryyear.Thecompanywasratedthe#2inthe‘BayAreaBestPlacestoWork’survey.Regularmeetingsbetweenfrontofficeandbackofficestaffhelpswiththecoordinationofguestpoliciesandprocedures.Thecompanyfostersanentrepreneurialculture,reflectedbyfourprograms:JoyofLifeGuides,JdVUniversity,Dreammaker,andCulturalAmbassadors.

JoyofLifeGuidesTheseareguidesforeachhotel’sguests,writtenbyemployeesandbasedontheirownexperiences,sharingbothconventionalandlesser‐knownrecommendationsaboutthingstoseeanddo.Theseguidesintroducegueststothosethingsthat‘locals’doandlove.JdVUniversityEmployeebenefitfromandcanteachinuniquecareerdevelopmentprograms,including“BoutiqueHotels:ThePast,PresentandFutureofourStylishIndustry”and“HowtobeaBlackBeltManager”.DreammakerTheDreammakerprogramencouragedJdVemployeestofulfillguest’sdreamsbytakingtheinitiativetosatisfyunusualrequestswhereverpossible.TheJoiedeVivrewebsiteillustrateswiththisexample,

“Whilecallingtoconfirmhislatecheck‐inattheHotelDelSolinSanFrancisco,Mr.HerbertmentionedhowupsethewastomisstheOklahomabasketballgame.Andrewatthefrontdesktooktheinitiativetotapethegame.Uponcheck‐in,Mr.Herbertfoundavideoofthegame,asix‐packofbeer,andanotereading,"EnjoythegamefromthestaffattheDelSol!"”CulturalAmbassadorsCulturalambassadorsarerisingstarsateachhotelwhoseareempoweredtokeepthecultureofeachhotelaliveanddynamic,consistentwitheachhotel’suniquepersonality.Thishelpsensureeveryaspectoftheguest’sexperienceisconsistentwithJoiedeVivre’sDestinyofcreatingdreamstocelebratethejoyoflife.Employeebenefitfromuniquecareerdevelopmentprogramsofferedbythecompany,including“BoutiqueHotels:ThePast,PresentandFutureofourStylishIndustry”and“HowtobeaBlackBeltManager”.

ExperiencesJoiedeVivre’sguestexperienceisdrivenbyasimplenotion:inspireall5sensesinthefirst5minutes.Thislatterideaistheequivalentofthree‐dimensionalbranding,wherebyacustomer’ssensesarethetargetandeachhotelenvironmentisthemedium,creatingahighlyengagingexperience.Thecompanyappealstocustomerpsychographics(attributessuchaslifestyle,personality,values,attitudesandinterests),asopposedtodemographics.Psychographicsrevealcommonconnectionsbetweenotherwiseuncommongroupsofpeople.Forexample,an85year‐oldwomanmaysharethesameinterestinJazzasa20year‐oldmalecollegestudent.Demographicswouldnotrevealsuchsubtlecommonalities.UnderstandingthesecharacteristicsiscrucialtoJoiedeVivre’ssuccessbecausethisknowledgeinspiresemployeestoconductthemselvesinaccordancewiththeuniqueexpectationsoftheirguests.JoiedeVivreusestheaforementionedculturalambassadorstopaycloseattentiontotheatmosphereateachhotel.Inaddition,JoiedeVivreusessplitsecondsurveystocaptureasnapshotinsightintotheguest’sexperience,andmoreconventionalguestcommentcardsaswell.

Example:EMCiiiEMCisaB2BtechnologycompanybasedinMassachusetts,USA,andagloballeaderwithexpertiseininformationstorage.2008revenueswerenearly$15billion,anditsoperationsgrewanadditional17%in2008,despitetheworsteconomysincetheGreatDepression.DestinyAtEMC’scoreisarecognizedexpertiseininformationanddatastorageandthisreasontoexisthasnotchanged.Asbusinessandtechnologyhaveevolved,sotoohasEMC’srefinementofitsDestiny.From1991‐2002EMCwaswidelyknownastheStorageCompany,usingmostlyhardwaretostoredatafrombusinesscustomers

aroundtheworld.From2002‐2005EMCexpandedthemessageintoStorageandInformation,alogicaladaptationgiventhecompany’shistoricalemphasisasanexpertinstoringinformation.Since2005,EMChasrefinedtheirDestinyfurtheraroundthethemeofInformationInfrastructuretoreflectthecontinuedrapidchangesofbusinessestodayrequiringnotjuststorageandinformation,buttransformingthatinformationintousefulintelligence.DistinctionSince2005,EMChasfocuseditsbrandbuildingeffortsoncreatinganewcategorycalled‘InformationInfrastructure’toreflectthechangingneedsoftheirbusinesscustomers.Animportantpointherehasbeenthecompany’semphasisonsolidifyingthisasalegitimatenewbusinesscategory.Tothatend,InformationInfrastructureisnotatrademarkname,allowingittobecomemoreeasilyadoptedbythemarket.CultureEMChasareputationforquality,resultingfromconstantinvestmentintalentandinrewardingaculturethatcreatessustainedvalue.Internalcommunicationandbrandingisanimportantcatalystinthiseffort,keepingemployeesaroundtheworld.Hiringtherighttalentisexpected.EMCthenensuresthetalentunderstandstheobjectives,goalsandofferingsofthecompanythroughavarietyofcommunicationsefforts:• Management Communication and Internal Branding EveryEMCexecutiveandbusinessleaderaroundtheworldhasrepeatedlyemphasizedthatEMC’sgoalistobetheworldleaderinInformationInfrastructure.Thisgoalhasbeenrepeatedbothinternallytoemployeesgloballyineveryoperationandexternallytothemarket,particularlyatindustryconferencesandwithtechnologyanalysts.Additionally,thecompanyrelentlesslyusesannualcustomerevent,EMCWorld,kick‐offmeetings,managementretreats,andlocalofficemeetingstohammerhomeitsDestinyandBrandStrategy.

• TotalCustomerExperienceFocusEMCgives all EMC employees the opportunity to recognize and be recognized for contributions to the Total Customer Experience - EMC's commitment to consistently exceed customers’ expectations for quality, service, innovation, and interaction.AboutTCE"The Total Customer Experience actually begins and ends with talking with our customers. This program gives us the opportunity to broaden the conversation we have with our customers, making certain that we are working as partners to help solve their business problems. And it is a competitive differentiator for us. "It's true that TCE is about product, process, and data. But at the end of the day, TCE is about you, it's about me, it's about building a strong relationship with our customers, and it's about furthering our company culture -- culture that puts our customers first to ensure that their experience with EMC is as positive and pleasant as it can possibly be."

ExperiencesToreinforcethenewbrandstrategy,EMCisusingseveraltools,including:corporatebrandmessage,productacquisitionandexpansion,sportssponsorships,analystreviews,customersandCSR(corporatesocialresponsibility).• Corporate Brand Message

EMC’sslogan,“WhereInformationLives”,conveystheessenceofEMC’sbrandpromiseandhintsattheInformationInfrastructurecategoryitispromoting.

• Product Acquisition and Expansion EMChaspurchasedover35companiesinrecentyearsinanefforttorealizeitsInformationInfrastructureambition,including:VMWarein2003(whichprovidessoftwarethatenablesdifferentoperatingsystemstorunsimultaneouslyonacommonserver,therebyfacilitatingcorporateinformationintegration);andIomega,awell‐knownconsumerstoragebrand.EMChasshifteditsbusinessfroman80%focusonhardware20yearsagoto50%emphasisonsoftware,whichofferscustomersamorediverseandrelevantsetofproductsusedinsupportingtheInformationInfrastructurecompanyfocus.

• Sports Sponsorships EMCwantstobewhereitscustomersare,whichisonereasonwhyithaslongsupportedandsponsoredsports,includingtheBostonRedSoxMajorLeagueBaseballteam,co‐brandingwithleadingNFLfootballclubs(includingtheNewEnglandPatriots),Rugby,andF1racing.Sportsprovidealargeaudienceforreinforcingbrandawarenessand,manyofitscustomersarealsosponsorsand/orfansoftheseandothersports.WiththeBostonRedSox,EMCannouncedin2008thatitisthefirstcompanyinthemorethan100‐yearhistoryoftheteamtohaveitslogoonthesleeveofeveryplayer’sjersey.TheRedSoxhave2JapaneseplayersontheteamandsinceJapanalsohasamajorfanbaseforbaseball,theRedSoxranpromotionsinJapanin2008thatEMChelpedsponsor,furtherraisingthecompany’svisibility.EMCisputtingNFLlogosonIOMEGAdrivesthataresoldinconsumermarkets,associatingitsproductswiththeNFLintheprocess.EMCsponsorstheHongKongSevensRugby,oneofthelargestrugbytournamentsintheworld.EMChelpssponsorthePanasonicF1racingteam,gettingvisibleplacementontheracingsuitsofthedriversandthemirrorsofthecars.EachofthesesponsorshipsenablesEMCtoreachalarge,diversebusinessandconsumeraudience.

• Analyst Reviews Partofatechnologycompany’scredibilitycomesfromindependentanalyststhatevaluateandreviewtechnologysolutions,lookingforgenuinedifferentiationandvalue.EMCupdatestechnologyindustryanalystsregularlyyearwiththeirnewestsolutions.Gartner,oneofthemostrespectedtechnologyanalystsintheworld,pickedupandnowuses‘InformationInfrastructure’asabusinesscategoryittracks,lendingcredibilitytoEMC’seffortsinthisarea.

• Customers EMCworkswithorganizationsaroundtheworld,ineveryindustry,inthepublicandprivatesectors,andofeverysize,fromstartupstotheFortuneGlobal500.Theircustomersincludebanksandotherfinancialservicesfirms,manufacturers,healthcareandlifesciencesorganizations,Internetserviceand

telecommunicationsproviders,airlinesandtransportationcompanies,educationalinstitutions,andpublic‐sectoragencies.EMCalsoprovidestechnology,products,andservicestoconsumersinmorethan100countries.TheircustomersprovidecredibletestimonialsforEMC’sofferings,andEMCusescustomersfrommorethan100countriesaroundtheworldtohelppromotetheminthatcustomer’shomecountry.

• CSR EMChasbeendeeplycommittedforyearsinavarietyofphilanthropicendeavors,including:communityinvolvement;education,informationheritage,underprivilegedchildren,andmore.Theseeffortsgivethecompanyamorehumanfaceandthebroadrangeofprogramsgetwidespreademployeeinvolvement,animportantindicatorofthecompany’sseriousnessinthisarea.IntheAsiaPacificregion,forexample,EMCisdedicatedtosupportingtheeducationofunder‐privilegedboysandespeciallygirlsattheSchoolofHopelocatedintheslumsofBangalore,India.InCambodia,EMCsupportshousebuildingandwaterwellprojectsthatliftfamiliesoutofabjectpoverty,providingthemtheshelterandirrigationneededtoliveonandfarmtheland.

On Information Heritage – from EMC’s web site:

The EMC Information Heritage Initiative recognizes organizations and individuals leading the way to protect and preserve the world's information heritage. EMC and its partners in this philanthropic and commercial initiative believe that information should be preserved, protected, and made globally accessible in digital form.

Helping preserve the irreplaceable

This initiative makes historical documents and cultural artifacts readily accessible—for research and education—via the Internet. EMC and initiative partners work with diverse organizations throughout the world to protect valuable information and improve access to international treasures.

In addition to the investments made by initiative partners, EMC provides financial assistance, in-kind donations, and proven expertise. These contributions complement EMC's other corporate philanthropy programs.

Additionally,EMCreliesonaglobalfieldsalesandchannelaccountmanagerforcetoworkwithcustomersandpartnerseveryday,consistentlysharingthesamesetofbrandmessagesandsolutionsthatemphasizingtheInformationInfrastructureexpertiseforwhichthecompanyisknown.

RelationshiptoBrandValue,CustomerEquity,PurposeBrands

Thestartofthischapterbrieflydiscussedthemarketingissuesassociatedwitha

brandvalue,customerequity,orapurposebrandfocus(Apurposebrandisonein

whichtheproductisdesignedtodoaspecificjob.FederalExpressisapurpose

brandbecauseitisdesignedtodeliverpackagesfrompointAtopointBasquickly,

accurately,andaffordablyaspossible.Thiswillbediscussedfurtherbelow).iv

RolandRust,ValarieZeithamlandKatherineLemonstatethatbrandbuildingshould

beintheserviceofgrowingcustomerequity.vTheyreasonthisisimportantis

becausecustomersaretheonesdeterminingifabrandisattractiveandworth

buyingornot,notmarketersormarketingcommunications.Puttingcustomersat

thecenterofthecompany’sbrandbuildingwillhelpcreatestrongcustomerequity

that,inturn,shouldleadtostrongbrandequity.Butifbrandsareemphasizedover

customer,thenthepotentialforcreatingofferingsthatarenotrelevantorattractive

increases.WitnessthestrugglesofUSautomakersinrecentyears,whichtendedto

favorreinforcingcorebrandsinsteadofunderstandingcustomersandtheir

increasingpreferenceforwell‐madeanddistinctiveimports.Conversely,if

customersdecidetheylikeabrand,thentheywillpurchaseitand,ifthebrandstays

relevantovertime,theywillkeepdoingsoformanyyears.AsRustetalstate,

“…forfirmstobesuccessfulovertime,theirfocusmustswitchtomaximizingcustomerlifetimevalue—thatis,thenetprofitacompanyaccruesfromtransactionswithagivencustomerduringthetimethatthecustomerhasarelationshipwiththecompany…companiesmustfocusoncustomerequity(thesumofthelifetimevaluesofallthefirm’scustomersacrossallthefirm’sbrands)ratherthanbrandequity.”vi

Theendofthischapterwilldiscusswaystomeasurecustomerlifetimevaluetohelp

reinforcetheconcept.Fornow,itisimportanttounderstandthepotential

relationshipbetweencustomerequityandbrandequity.Thechallengefor

companiesisdetermininghowtosucceedineachofthefourelementssothatthe

collectiveeffortcreatesastrongerbrandthatallstakeholdersbelievein,versus

focusingonlyononeortwoareas(suchasbrandstrategyorexperiences—themost

commonbrandbuildingareas),whichcanleadmanagementtodeveloptacticsin

pursuitofshort‐termgoalsattheexpenseofalesscohesiveandconsistentbrand

overthelong‐term.

Intheirarticle‘MarketingMalpractice’,ClaytonM.Christensen,ScottCook,and

TaddyHallarguetraditionalcustomersegmentationcanleadmarketersto

producingproductsand/orfeatureswithoutknowingifcustomerswillactuallyfind

thembeneficial,

“Theproblemisthatcustomersdon’tconformtheirdesirestomatchthoseoftheaverageconsumerintheirdemographicsegment.Whenmarketersdesignaproducttoaddresstheneedsofatypicalcustomerinademographicallydefinedsegment,therefore,theycannotknowwhetheranyspecificindividualwillbuytheproduct—theycanonlyexpressalikelihoodofpurchaseinprobabilisticterms.”vii

Christensenetalrecommendthatfirmssimplifytheirbrandbuildingapproachesto

attractingcustomersbytakingthecustomers’pointofview—“theyjustneedtoget

thingsdone”.viiiTheirviewisthatbrandbuildersmistakenlybelievethatifyou

understandthecustomer,youwillunderstandthejobcustomerswantdone.Yetthe

likelihoodofthisoccurringisquitelow.Whenthejobisunderstoodand

correspondingsolutionsaredeveloped,thencustomersessentiallyhire

companies/productstodothejobsforthem.

“Wecallthebrandofaproductthatistightlyassociatedwiththejobforwhichitismeanttobehiredapurposebrand”ix

Clearly,brandbuildingiscomplexanddoesnoteasilylenditselftoasingular

approach,whichiswhywestatethatbrandsaretheentireorganizationasseen

throughtheeyesofstakeholders.

Thistextbookisbasedonresearchofmorethan200companiesaroundtheworld,

manyofwhichwereglobalbrands,andothersthatwerenicheand/orlocalbrands.

Asaresult,wetakethepointofviewthatastrongbrandistheentireorganization

asseenthroughtheeyesofstakeholders(customers,employees,suppliers,

distributors,shareholders…).Inotherwords,themarketdeterminestheultimate

valueofthebrand.Ifbrandvalueweretobethesolefocusofthebusinessstrategy,

thenthesubtlerneedsassociatedwithdifferentcustomergroupsmightbemissed

sinceresourceswouldbeusedtopushthebrandintonewgrowthopportunities.If

customerequitywerethefocus,thenbrandsmightnotbeasresponsiveto

competitivemovessincethemajorityoftheireffortwouldbeplacedonserving

specificcustomerneeds.Ifpurposebrandswerethefocus,theninnovationmight

suffersinceresourceswouldbeconcentratedondesigninganarrowsetoffeatures

toaddressaspecificjob,whichwouldreducetimeandresourcesdedicatedto‘out

ofthebox’solutions.

***

Forplanningpurposes,eachDDCEelementmaybevieweddiscreetlyasdistinct

identitiesbecausesuchaconcentrationwillbrandbuildingattentionaroundthe

uniquecomponentswithin.However,thepracticaldemandsofmanagersin

businessdonotalwaysrecognizeartificialplanningboundaries,particularlywhena

customerhasaproblem.Theysimplywantitfixed,andthisdemandcompels

companiestopreparetheiremployeestohandlecustomerneedsreadily,without

waitingfortheorganizationalapprovalsbuiltintoeachfirm’sstructure.Customers

rarelycareaboutchainsofcommand,unlesstheirproblemremainsunresolved,in

whichcasecustomersmaydemandto‘speaktoasupervisor’.Suchanoccurrence

impliesabreakdowninthecustomer‐orientationofthebrandownerandshould

sparkquickmanagementactiontopreventthisfromhappeninginthefuture.As

implied,whilethesefourelementshavedistinctidentities,theyinteractcontinually,

affectingacompany’srelationshipwiththemarketplace.Inthissense,eachelement

isalreadybeingpursuedinthenormalcourseofthefirm’sbusinessactivities(even

thoughthebrandframework’sterminologymaynotbeused)andtheworkwithinis

constantlyevolvingatthesametime.

Therefore,whilefocusingbrandbuildingoneachelement’scomponents,knowing

thateachelementoperatesinconcertwithothersshouldinspirebroaderthinking

abouthowthetotalbrandisperceivedbyallstakeholders.Brandsarerarelybuilt

successfullyonthebasisofjustoneortwobrandframeworkelements.Whilea

companymayproduceahighqualitybrand,thisshouldnotmisleadmanagement

intobelievingthattheorganizationiscapableofproperlydeliveringthebrandto

themarket,andsupportingitwithmemorableexperiences.Recognizingthateach

elementinteractswiththeothersfluidlywillinfusebrandplanningwithamore

accuratesenseoftheinterdependenciesinsideandoutsidethecompanythatshape

thebrand’sreputation.Therearenostarts,stops,magicdoorsorsingularformulas

thatdictatetheexactstepsneededtobuildbrands.Partofbrandingsuccessisthe

resultofacombinationofexceptionalcompetence,research,flexibility,ongoing

questioningoftheestablishedorder,planning,andserendipity.

iSteveJobs:TheNextInsanelyGreatThing"inWIREDmagazine(February1996).RetrievedMay2006.http://www.wired.com/wired/archive/4.02/jobs_pr.html.iiInformationcourtesyofinterviewsandemailswithChipConley.AdditionalinformationwasobtainedfromChip’sbooks:Peak:HowGreatCompaniesGetTheirMojoFromMaslow©2007Jossey‐Bass;TheRebelRules:DaringtobeYourselfinBusiness©2001Fireside.JoiedeVivre’swebsiteprovidesathoroughoverviewofthecompany’shistory,success,andbusinesspractices.Visitwww.jdvhotels.com.iiiInformationsuppliedbyStevenLeonard,PresidentofEMCAsiaPacificandJapaninaspeechStevedeliveredatSingaporeManagementUniversityinFebruary2009;andBeckydiSorbo,DirectorofCommunicationsandPRforEMCAsiaPacificandJapan.SupplementedbyEMCcorporatewebsite:www.emc.com.RetrievedOctober2008‐Februar2009.ivChristensen,ClaytonM.ScottCook,TaddyHall.‘MarketingMalpractice‐TheCauseandtheCure’.pp.4‐6.R0512D.HarvardBusinessReview.December2005.vRust,RolandT.ValarieA.Zeithaml,KatherineN.Lemon.‘Customer‐CenteredBrandManagement’.pp.3‐5.R0409H.HarvardBusinessReview.September2004.viIbid.pp.9‐11.viiChristensen,ClaytonM.ScottCook,TaddyHall.‘MarketingMalpractice‐TheCauseandtheCure’.p.2.R0512D.HarvardBusinessReview.December2005.viiiIbid.ixIbid.p.5.