GOOD BRANDS GROW BUSINESS

DOES EVERY BRAND NEED BRANDING?

SENSORY OVERLOADConsumers are nowadays bombarded by over 600 messages on any given day.

Early 90s

• 21st Century• Nature’s Way• Kordel• Blackmores

Now

• 21st Century• Nature’s Way• Kordel• Blackmores• GNC• ShakeLee• Nature’s Life• Country Life• Nutrens• Ocean Health

SUPPLEMENTS - COPYCATS & OVER SUPPLY

• Bio-Life• Seven Seas• Centrum• Herb Valley• Brands• VitaHealth• Bio Science• Food Source• Nature Farm• x

From:

Limited Purchasing

Lower Education

Home Bound

Easily Satisfied

CHANGING CONSUMER PROFILE

©BRANDZ All rights reserved

To:

Affluent

Well Educated

Well Traveled

Demanding

BRAND INCONSISTENCY98% of companies say one thing but deliver something very different from their actions

TIMENOW YEARS/EXPANSION/COMPETITIVE PRESSURE

I1

D1

D2

I2

D3

I: Brand ImageD: Delivery

BRAND GAPPerception Does Not Equal Reality

Need to distinguish ourselves from others to be heard and stay relevant

SOME CONCLUSIONS

• Every business that is serious about the success of its brand must realize that :

– IT IS IMPERATIVE TO BRAND FOR LONGEVITY AND SUCCESS.

WHY?

• Consumer brand choices are not solely based on rational reasons

• Functional brand features do not give your brand the needed differentiation

• Consumer tastes and market forces are fluid…. they change!

• Technology can be copied:– Your brand can be outspec’ed, outdesigned

and outpriced!

• Your brand as a person, with its unique personality traits cannot be copied. Branding can develop this ‘Personality’

• It’s not about records, mobile phones, airlines or drinks. It did not start off that way.

• Began in the 1970s with a student magazine and small mail order record company.• They have based every decision on hard research and

analysis. They put themselves in the customers’ shoes to see what could make it better – are the customers confused or badly served? Is there an opportunity – seize it? They believe in branding!

• It’s all about Fun and Irreverence • Today, the Virgin brand is a global brand name

with a total revenue in excess of US$5 billion.

VIRGIN - DIVERSIFIED YET FOCUSED

WHAT LESSONS CAN WE LEARN FROM VIRGIN?

• Brand Essence – Fun & Irreverence

• Consistent application of this essence in every business and sub-brand they have.

• The Virgin Atlantic Story– Lost baggage– Office Opening– In flight souvenirs

SO HOW CAN YOUR BRAND EMULATE THE VIRGIN SUCCESS?

DELIVER A VALUE PROPOSITION

• What is this?

“ A brand’s value proposition is a statement of the functional, emotional and self-expressive benefits delivered by the brand that provide value to the customer. An effective value proposition should lead to a brand-customer relationship and drive purchase decisions.”

- David Aacker-Building Strong Brands

FUNCTIONAL BENEFITS

• A benefit based on a product attribute that provides functional utility and benefit to the customer.

• Some examples:– Volvo is safe and durable because of its weight and

design– A 7-Eleven store means convenience– Coke provides refreshment and taste– A BMW vehicle handles so well… even on ice– 100Plus helps replace body fluids lost through

perspiration– Dynamo liquid removes stains and washes cleaner

SO WHAT’S WRONG WITH FUNCTIONAL BENEFITS?

• Absolutely nothing!

• But….

– The challenge is to select functional benefits that will “hit the spot” and make a connection with the customer.

– How many functional benefits are there left that can do this? They are mostly generic!

LIMITATIONS OF FUNCTIONAL BENEFITS

• Functional benefits based on product attributes:

– Fail to differentiate– Can be copied– Assume a rational decision maker– Restrict brand extensions

EMOTIONAL BENEFITS

• When a brand provides the user with a positive feeling then the brand is providing an emotional benefit.

• Some examples:– Energetic & vibrant when drinking Coke– Strong & rugged when wearing Levis– Confident and glowing when using Dove– In control of the aging process when using Oil of Olay– Sporty, masculine and successful when wearing a

TAG Hueuer

SO WHAT’S SO POSITIVE ABOUT EMOTIONAL BENEFITS?

• Emotional benefits add richness and depth to the experience of owning and using the brand

• They enable brand differentiation in a cluttered over-communicated market

FUSING FUNCTIONAL & EMOTIONAL BENEFITS

• The strongest brands have both functional and emotional benefits as part of their value proposition, e.g.– Pantene: Adds emotional benefit “You will

look and feel terrific” to functional benefit “For hair that’s thicker and fuller”, very successfully throughout its range.

SELF-EXPRESSIVE BENEFITS

• Brands have become symbols of a person’s self-concept. Thus a brand provides a self-expressive benefit by providing a way for him to express his self-image.

• Some examples:– Successful and powerful when I drive a Mercedes

Benz– Sophisticated when using Davidoff perfume– Discerning & tasteful when wearing an Armani suit– Caring & nurturing when serving Fernleaf milk– Sporty and young in outlook when driving an Alfa

STRONG BRANDS

Functional benefits Emotional benefits

Self-expressive benefits

THE VALUE PROPOSITION MODEL

THE KEYS TO BRAND LONGEVITY

ENSURE BRAND RELEVANCE

Adopt a consumer-driven approach Work from “outside-in” to develop brand offerings that meet and fit with current/future consumer wants. This ensures relevance, longevity and success of your brands.

COMMIT TO A REAL DIFFERENTIATOR

• Take a unique real and believable strategic position for your brand. Do not fall into the product attribute (e.g. “washes cleaner”) trap. Be bold and take a position that enables your brand to stand out.

HAVE A VALUE PROPOSITION

• Combine emotional, functional and self expressive benefits to achieve differentiation. Skillfully combined, they deliver a value proposition that builds a relationship between user and brand, going beyond just loyalty.

INVEST IN YOUR BRAND

• Put money into research and development to enhance the product/service delivery of quality.

• Be willing to invest in packaging design, distribution, promotions.

• Ensure you have a clear feedback from the market about your brand’s appeal. Invest in market research

HAVE A BRAND ARCHITECTURE

• It establishes a system of relationships and structure for all the brands in a company’s stable. This will avoid confusion.

• In every touch point the brand has with its users, the brand experience must be aligned and consistent.

Master brand supporting/endorsing autonomous brands

Technological advancementfor increased hair vitality

2/3 in-one for convenience

Dandruff control

PROCTER & GAMBLE SHAMPOO RANGE

PANTENE

REJOICE

HEAD & SHOULDERS

Premium priced, superior cleaning

One for every Asian hair type

Superior cleaning, economy priced

UNILEVER PRODUCT RANGE (partial)

BREEZE

SUNSILK

EKONOMIHANDALAN

Master brand supporting/endorsing autonomous brands

END