Best Practices in Building Your Corporate Value Proposition

Best Practices in Building Your Corporate Value Proposition

Research Findings from Best Practices, LLC

BEST PRACTICES,

®

LLC Copyright© Best Practices®, LLC 2

Building a Corporate Value Proposition Overview

This presentation was compiled from various primary and secondary research conducted by Best Practices, LLC.

1. Key Topic Areas Study Objective & Methodology

Companies that are defining their value proposition understand that this is the first step in clearly identifying how their products and/or services are different from the competition – in essence what sets them apart. If a company cannot define some unique feature or benefit that makes it stand out, then customers may default to the most basic option of differentiation -- price. For pharma companies, playing the low-price game is a lose-lose proposition -- even when they make sales.

• Understanding Corporate Value

• J&J Case Study: Origin on Trust

• G.E. Healthcare’s

Healthymagination

• Eli Lilly Case Study on Social

Responsibility

• Corporate Brand Planning

Processes

• Why Focus on Customer Loyalty?

• Achieving the Corporate Value

Proposition

BEST PRACTICES,

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Understanding the Corporate Value Landscape

Brand Story

Provides inspiration and motivation

for customers, employees and

stakeholders. Ued in corporate

identity articles, special events and

new product launches.

Core Identity Concepts

Aligns the associations you want to

create and maintain. Look to

resonate with customers and

differentiate brand. Should be easy

to communicate and consistent for all

products.

Tagline

Traditionally referred to as the

corporate "slogan". Examples:

Federal Express- The World On

Time; Saturn- A Different Kind of

Car Company.

Building Your

Corporate

Brand

The Value Proposition Represents the functional and

emotional benefits customers

expect to receive from your

company. Reflects a balance

between the aspirations and reality

of what you can deliver.

A corporate brand is a single, clear promise that a company makes and fulfills for its

stakeholders. Branding is the strategic process of establishing both the tangible and

intangible attributes to differentiate your company and give it focus to consumers and

others.

Vision

Expresses the philosophy

driving the organization – your

destination in the next 3 to 5

years.

Brand Promise Distills what the customer will receive.

Drives the value proposition and

provides differentiation.

BEST PRACTICES,

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What is a Brand?

• A brand is a promise.

– Promises must be believable and consistent through

time

– Promises must be delivered upon

– A promise helps cement the relationship between the

company, product or service and its customers

“The reason we brand is to 'own' a piece of our customers’ gray matter…we want our product to be differentiated in

our customers’ minds”

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– Traditionally in our industry, product brands have functioned

alone, without a corporate brand.

– Today, research shows customers prefer to see a link

between a corporate brand and product brands.

Product only

Product/corporate link

Don’t know

0

20

40

60

80

100

Consumers Physicians Pharmacists

94% 97% 100%

4% 1% 3%

Provide Info at a Corporate and Product Level

Source: Landor

Pharmaceutical companies can no longer just focus on individual brands when

discussing their pharmaceutical products. Physicians, patients and pharmacists are

wanting to see linkage between the corporate brand and product brand.

BEST PRACTICES,

®


Origins of Trust: A Case Study of J&J

• During the Civil War, 75% of wounded

soldiers died from infection

• 1886: Johnson brothers (Robert Wood,

James Wood, Edward Mead) embraced

concepts of antisepsis

– began manufacturing sterile gauze and

cotton

• Begin publishing “how-to” medical

guides

• Medicinal plasters

J&J has established a level of trust with its stakeholders through the last 120-plus years.

Its Credo was established in 1943 and is part of the daily fabric or the organization. It

calls the value it places on trust its “TRUSTMARK.”

CREDO

• Statement of Business

Ethics

• Responsibility to:

– doctors, nurses, patients,

mothers, fathers

– employees

– communities in which we

live and work

– shareholders

• Truly a guide; used daily

BEST PRACTICES,

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Adopt Organic Organizational Structures

• Mechanistic

- Structured Forms of Interaction

- Restricted Operating Styles

- Formal Authority and Chain of Command for Decisionmaking

- Reluctant Adaptation - captive of history and SOPs

- Emphasis on Procedures

- Tight Control

- Senior Leadership and Managers make decisions absent involvement of subordinates

• Organic

- Open Channels of Communication - support the free flow of information in the organization

- Open Operating Styles - allowed to vary freely

- Autonomous and Distributed Decision-making - based on expertise

- Emphasis on Accomplishment – as opposed to formal procedures

- “Collective Intelligence” of the organization engaged in decisionmaking process

BEST PRACTICES,

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Corporate Citizenship at Novartis

Novartis focuses some of its corporate citizenship to supporting the eradication of AIDS

in Africa. AIDS orphans are a key target of Novartis, starting with its pilot program in

Tanzania and has moved to 12 other countries.

To learn more about Novartis’

program for AIDS in Africa

Click Here

“Our purpose is caring and curing

for patients, one reason why we

are expanding access to

healthcare around the world.”

“Our corporate citizenship policy

reflects our commitment to the 10

principles of the United Nations

Global Compact.”

“The Novartis Code of Conduct sets

out the standards of ethical

behavior that we expect from

Ethical business our associates and

underpins all that we do.”

“We endeavor to ensure the

livelihoods of our people while

being a good neighbor.”

“Our corporate citizenship policy

reflects our commitment to the

10 principles of the United

Nations Global Compact.”

Throughout the world, Novartis

country organizations are active in

corporate citizenship.

http://www.youtube.com/watch?v=JZldRKSLkmE




BEST PRACTICES,

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Why Focus on Customer Loyalty?

• Customer satisfaction is not enough

• Assists growth targets by keeping the business we already

have

• Growing new customers costs significantly more than

maintaining the ones we have

• Addressing loyalty drivers wins Dow account share

• Vital to employee morale and satisfaction

BEST PRACTICES,

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Establish Marketing Points of Connection with

Customers and Business Functions A World Wide Marketing division can play a key role in driving product development by

researching and identifying customer needs and working with internal business

functions to create and launch new products.

Marketing’s Role in a Market-Driven Business Model

• Strategic

Marketing

identifies

user need.

Identify

Need

Assess

Market

Potential

Generate

Product

Launch

Product Sell

• Marketing

Programs

conducts

market

research

to assess

potential.

• Partnership

Marketing

evaluates

partner

synergies.

• If no synergies

available, R&D

creates new

product.

• Marketing

Programs

conducts a

multi-stage

product

launch

process.

• Marketing

Programs

provides

sales

collateral.

BEST PRACTICES,

®


Best Practices, LLC

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Chapel Hill, NC 27517

919-403-0251

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About Best Practices, LLC Best Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class companies.

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Health & Medicine

Best Practices in Building Your Corporate Value Proposition