make your brands make a difference by ri
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Make your Brands Make a Difference by RITRANSCRIPT
Make your brands
make a difference
© Research International 2002
2
Linking people and brands
People
Share needs, values
and aspirations, but all
unique individuals
Brands People
Brands
Share qualities with
competitors, but with
unique individual
variations
3 Brand
strength
Linking people and brands: our branding expertise
Needs
Values
Aspirations
People
Consumer understanding
Architecture
Equity
Positioning
Brands
Branding
4 Brand
strength
Linking people and brands: what we add
Architecture
Equity
Positioning
Needs
Values
Aspirations
People Brands
Consumer understanding Branding
Communication, Customer relationships
Channel management
Innovation
Innovation
5
Linking people and brands
People
6
Different consumption patterns
7
The consumers’ world
TimepoorcashrichJadedUnpredictableCrampedDemandingHardtofind
TimepoorcashrichJadedUnpredictableCrampedDemandingHardtofind
8
Different channels
9
Brands
Brands
10
Increasing choice
11
Why invest in branding?
Nestlé bought Perrier for ten times its financial value
Absolut Vodka grew sales by 1750% in eight years*
61% of Coca-Cola’s stockmarket valuation is its
brand value**
50% of the top 100 UK Consumer brands are over
40 years old
Great brands attract great employees
* Brand Equity and Advertising, Aaker and Biel ** Interbrand/Citibank 2001
12
Linking people and brands for better performance
People Brand
strength
Results
Needs
Values
Hopes
Equity
Edge
Loyalty
Share
Profit
Return on
investment
13
What are the issues?
Getting global, getting local
Fewer, bigger brands
The right channels, the right messages
Extending and stretching
Brand architecture
Brand confusion
Build and maintain the emotional difference
Connect with your customers
14
Brand in the society
Brand in the market
Brand in the portfolio
Functional descriptors
Functional benefits
Emotional benefits
Personality
Brand in the society Brand in the market Brand in the portfolio Functional descriptors Functional benefits Emotional benefits Personality Spirit Spirit
Spirit
Personality
Emotional benefits
Functional benefits
Functional descriptors
Brand in the portfolio
Brand in the market
Brand in the society
From the outer to the inner brand
15
Two critical measures
Familiarity
Awareness combined with knowledge of the brand
Equity
A single quantified measure of the overall strength
of a brand in terms of its emotional and functional
benefits as perceived by the consumer
16
Familiarity relates to market share
Indexed
market
share
Familiarity
17
Equity is a single measure of brand strength
Source: Research International database UK home PC market,
Apple Mac
Packard Bell
Hewlett-Packard
Tiny
IBM
Gateway
Dell
Compaq
Market average
72
94
95
95
105
105
111
112
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How we measure equity
Physical
Emotional
Equity
Product
Service
Performance
Identification
Approval
Authority
Affinity
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The elements of equity: Affinity
Authority
Identification
Approval
Affinity
A framework for understanding the emotional and
intangible benefits of a brand
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Affinity
Authority
Identification
Approval
Affinity: authority
Heritage
Trust
Innovation
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Authority: heritage, trust, innovation
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Affinity: identification
Bonding
Caring
Nostalgia
Authority
Identification
Approval
Affinity
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Identification: bonding, caring, nostalgia
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Affinity: approval
Prestige
Acceptability
Endorsement
Authority
Identification
Approval
Affinity
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Approval: prestige, acceptability, endorsement
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Prestige
7%
Acceptability
7%
Endorsement
10%
Understand your market
Performance
32%
Affinity
68%
Approval
24%
Heritage
6%
Trust
8%
Innovation
4%
Authority
18%
Bonding
12%
Caring
8%
Nostalgia
6%
Identification
26%
Source: Research International case study, French retail market
Equity
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Some markets are more driven by affinity...
0%
50%
100%
Affinity
Performance
Source: Research International Database
28
How we relate Equity to growth
The Equity Enginesm model allows us to
understand the drivers of brand strength
in any market
We can now use this to understand how equity
relates to future brand performance
29
Familiarity can lead to different levels of equity
Familiarity
Brand
equity
Source: Research International Equity Enginesm database
30
Brand Edgesm
Familiarity
Brand
equity
Source: Research International Equity Enginesm database
31
Brand Edgesm
Familiarity
Brand
equity
- edge
+ edge
Source: Research International Equity Enginesm database
32
Edge relates to gain or loss of market share
4%
57%
39%
Gain
+ edge
4%
52%
44% Loss
- edge
Source: Research International Equity Enginesm database
33
Character matters
“The extent to which the brand has a distinctive
nature - standing for something”
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High character brands usually have high Edgesm
Brand with high character
Brand equity 135
Brand edge +18
Brand with low character
Brand equity 132
Brand edge -3
Heritage
Trust
Innovation
Caring
Bonding Nostalgia
Prestige
Acceptability
Endorsement
Heritage
Trust
Innovation
Caring
Bonding Nostalgia
Prestige
Acceptability
Endorsement
Source: Research International Equity Enginesm database
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Understanding the brand from top to bottom
Locator sm
BrandSight
Gallery sm
Needs & Values
Inventory
Equity
Engine sm
Measures total
performance of brand
on key indicators
Pre-validated modules
for measuring brand
personality, plus benefits,
needs & values
Customised model for
measuring contribution
of other factors, e.g.
detailed execution
Summarisation
Detailed
diagnosis
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Sincerity Excitement Competence Sophistication Ruggedness
Down to
earth
Honest
Genuine
Cheerful
Daring
Spirited
Imaginative
Up-to-date
Reliable
Intelligent
Serious
Upper class
Charming
Outdoorsy
Tough
A framework for brand personality:
BrandSight Gallerysm
Source: Jennifer Aaker, JMR August 1997
A framework for understanding core values:
BrandSight Gallerysm
Fire
Earth Water
Air
38
What are the issues?
Getting global, getting local
Fewer, bigger brands
The right channels, the right messages
Extending and stretching
Brand architecture
Build and maintain the emotional difference
Fight brand confusion
Connect with your customers
39
Your issues?
Tailor this page for your client [see notes]
40
Why Research International
Strong team
Unparalleled knowledge: database of over 2,500
brands from projects in over 60 countries in
Predictive branding tools
Link branding with:
communication
broader marketing and commercial issues
sector expertise
in-depth understanding of consumers and innovation
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A price advantage can be undercut, a product advantage can be outflanked… but an emotional difference can command a premium forever
“In an increasingly crowded market place, fools will compete on price. Winners will find a way to create lasting value in the customer’s mind ”
Tom Peters
Build the long term value of your brands