Make your Brands Make a Difference by RI

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

20

Affinity

Authority

Identification

Approval

Affinity: authority

Heritage

Trust

Innovation

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Authority: heritage, trust, innovation

22

Affinity: identification

Bonding

Caring

Nostalgia

Authority

Identification

Approval

Affinity

23

Identification: bonding, caring, nostalgia

24

Affinity: approval

Prestige

Acceptability

Endorsement

Authority

Identification

Approval

Affinity

25

Approval: prestige, acceptability, endorsement

26

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

27

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”

34

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

35

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

36

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