10 STEPS TO BUILD A STRATEGIC BRAND

AGENDA1. Our rearrangement of branding

strategy process

2. More details fixed 10 steps

3. Example for 10 steps - LIPTON

4. Business Perspective

Quang Huy – Minh Quang – Hoàng Yến – Thái Hoàng – Minh Hoàng

CONSUMER IS THE HEART OF BUSINESS WHERE ALL THE IDEAS START AND THE MONEY LAST FLOW INTO THE BUSINESS. This perspective believes that the first and most important job of a business is to put consumers at the center and compass all activities following to satisfy consumer’s needs without any compromises. à THEN THE BUSINESS ITSELF WILL NATURALLY GROWS

CONSUMER 1ST PRINCIPLE AT THE HEART OF BUSINESS

Business Goal

Stakeholder Analysis

Brand Vision

Brand Promise

and Positioning

ALL DECISION MUST BE UNDER THE LIGHT OF CONSUMER’S NEED

DIGITAL POWERSUSTAINABILITY TRENDTECHNOLOGY EVOLVINGURBANISATION D&E MARKET

PEOPLE AT THE CENTER, DRIVE THE BUSINESS AGENDA

PERSPECTIVE 1: PUT CONSUMER 1ST

BUSINESS GROWTH IS THE REASON WHY BUSINESS WAS BORN. THIS PERSPECTIVE BELIEVES THAT EVERY DECISION AND ACTIVITY OF THE BUSINESS MUST BRING (A LOT) MONEY BACK. Consumer is considered as a stakeholder among many others that the business must care and serve to drive growth.

CONSUMER

CUSTOMER

SHAREHOLDER EMPLOYEE

SOCIETY

COMPETITORBUSSINESS

BUSSINESS DRIVES ITS

OWN AGENDA

Business Goal Stakeholder Analysis

Brand Vision

Brand Promise and Positioning

CONSUMER’S NEED

SEGMENTATION

DEPLOYMENT

ALL DEC

ISION

MUST BE UN

DER THE LIG

HT OF BUSIN

ESS G

ROW

TH

PERSPECTIVE 2: BUSINESS AS 1ST PRIORITY

Stakeholder Analysis

In the changing and connected world, where consumers are diverse & demanding, competitors are competitive globally and locally than never before, we truly belive that consumers have the greatest power and decision on business à CONSUMERS DRIVE BUSINESS AGENDA.

COMPARISION PUT CONSUMER 1ST PUT BUSINESS 1ST

PRO Sustainable growth in the fast changing world Plus ROI in short time

CON High investment in R&DAlignment among functions & shareholders

Consumer loyaltyTough competition

TYPE OF BUSSINESS

BIG CORPORATEWith a wide range of portfolio, big capital and resource

- SME & STARTUP when they must survive 1st then drive bigger agenda later- corporate with unsustainable mindset

CSM Business Goal

Brand Vision

Brand Promise and Positioning

ALL DECISION MUST BE UNDER THE LIGHT OF CONSUMER’S NEED

Brand Personality

Brand Narrative

Brand Narrative

CONSUMER EXPERIENCE

BRAND THINK BRAND TALK AND DO

AS MARKETER, WE PUT CONSUMER 1ST

STEP 1: DEVELOP CUSTOMER NEEDS–DRIVEN SEGMENTATION WITH PERSPECTIVES ONCOMPETITION AND SEGMENT ECONOMICS

• Ex : Hair care is a fragment category with different segmentation

• There is 4 main segmentation in Hair Category: Anti-Dandruff, Men, Hair Health and Smothnes

Custom

erse

gmentatio

n GeographicCustomerlocation,Region

Urban/RuralEx:CustomersliveinHCM/

HN…

Demographic Age.Gender.Occupation.Socio-economicgroup Ex:Universitylevel…

BgoryehavioralRateofusage.Benefitssought.Loyaltystatus.Readinesstopurchase

Ex:Earlyadopters,OpinionLeaders …

Psychographic Personality.Lifestyles.Attitudes.Class Ex:Traiditionalist,Active,..

Combination

The overall aim of segmentation is to identify high yield segments – that is, those segments that are likely to be the most profitable or that have growth potential

Group consumers based on similar needs and benefit

Anti-Dandruff ( 27%) Men (21% ) Hair Health ( 16% ) Smothnes ( 18%)

Scalp care Anti-Dandruff

Smooth& Soft ShinyAffordable

Anti- BreakageHair fallSplit- EndHair NutritColor Protectionion

Fragrance Cleansing Anti-Dandruff

Other Semgmentationbase:

STEP 2: EXTRACT EXPLICIT SHORT AND LONG-TERM BUSINESS GOALS AS DRIVERS OF BRAND VISION

Businessstrategy Brandstrategy

Description of business is answer the question: how do they create value and how they compete in their industries. The most important : Brand strategy is always follow business strategy . If not, brand is useless and not delivering any value

STEP 3 : CONDUCT KEY STAKEHOLDER ANALYSIS TO CAPTURE IMPLICIT BRAND REQUIREMENTS

Identify key stakeholder CEO, CFO, VP Marketing,…

Work out their power

Win their support from other

Mission and Goals:FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its team members, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.

FedEx Long Term GoalsAchieve 10%+ operating marginIncrease EPS 10%-15% per yearGrow profitable revenueImprove cash flowsIncrease ROICIncrease returns to shareowners

STEP 4: DEVELOP A BRAND VISION LINKED TO THE CORPORATE OR BUSINESS UNIT BUSINESS STRATEGY

A Vision statement should be: +Short: Two sentences at an absolute maximum+Specific to your business+Do not use words that are open to interpretation+Simple: inside and outside your organisation can understand+Ambitious enough+Align to the Values

Ex : Number 1 Group ‘s vision: Become one of the leading food and beverage companies in Asia whilst catering for global consumers.

STEP 5: DEVELOP A BRAND PROMISEA Brand is a Promise. The basic of any brand is its core promise, the enssential idea around which the other components of the brand are built

Ex: Number 1 Group ‘s Promise: Focusing on creating in healthyand artificial preservative beverages to serving consumers withthe best quality

Create the brand mission with the keyUNIQUE & RELEVANT quality & benefit

Benefit

Easytorememberandidentify

Customersbecomemoreloyalandtrust

DistinguishYourBrandintheMarket

CreateaUnifiedFront

STEP 6: DEVELOP BRAND POSITIONINGBrand positioning is the process of positioning your brand in the mind of your customers.

1.Target Customer: the most profitable segments 2.Market Definition: The category and the context that your brand have relevance to your customers.3.Brand Promise: The most compelling (emotional/rational) benefit to your target customers that your brand can own relative to your competition.4.Reason to Believe: the most compelling evidence that your brand delivers on its brand promise5 Principle: Consistant- Important- Unique- Enduring- Believe

Four essential elements:

STEP 7 : DEVELOP A BRAND PERSONALITYBrand Personality is the set of human characteristicsassociated (also distinction/unique) with a brand

Ex. Amazon Positioning: For World Wide Web users who enjoy books, Amazon.com is a retail bookseller that provides instant access to over 1.1 million books. Unlike traditional book retailers, Amazon.com provides a combination of extraordinary convenience, low prices, and comprehensive selection.

STEP 8:DEVELOP A BRAND NARRATIVEBrand Narrative Brand Storytelling=

Stories need content and emotion. Successful brands differentiate themselves through storytelling

STEP 9: DEVELOP A BRAND IDENTITY SYSTEMA Brand Identify is the visual expression of a brand that is communicated to the outside world, and includes its name, logo type or mark, communication and visual appearance.

A Brand identify creates an emotional connection, reflects the brand positioning and desired image

Ex: Toms Shoes According to the website, which includes The Toms Story, founder Blake Mycoskie “witnessed the hardships faced by children growing up without shoes” while traveling in Argentina in 2006. “Wanting to help, he created Toms Shoes, a company that would match every pair of shoes purchased with a new pair of shoes for a child in need,” the site says. Sollution: One for oneIt work because: Consumers want to feel not only like they are getting a good product, but that they are getting it from a good brand. They become a part of brand.

STEP 10: TRANSLATE BRAND PROMISE INTO CUSTOMER EXPERIENCE DESIGNMap the journey of consumer with brand.

EX : Viet jet air’s Promise: To make flying become affordable to the general public.

They keep the promise by: Price: Commit to low price to compete with trains/buses

Promotion: Various promotions, especially during travelling seasons or when introducing new routes

Nil Low Medium HighLipton up to 125 years global tea brand; best-in-class tea quality, available in 150 countries

Dedicated,loyal traditional green tea user

Ocassionally tea bag usernot favortea bag

Other drink Switcher or trial user

Young adult, potentialuser Consciousness-driven, caffein allergies, prefer tea as a gently moderate solution to coffee or energy drink

Overview of Vietnam Tea bag marketØ Diversified product lines- Ordinary tea (green tea, herbal tea, fruity

tea, black tea)- High-end ingredients such as ginseng tea,

Ganoderma Tea, OLoong... originated in domestic or imported foreign brand.

Ø Highly competitive caused by tradition tea which are many families similarity and a range of bottled tea products.

STRENGTHS WEAKNESSESCosy (entrusted local brand)

international quality Vietnamese tea cup that ensure healthbrand positioning "Vietnam Tea No.1"eco-friendly designed tea bagsNation-wide distribution channels with 4 product showrooms

Diversified portfolioMany VariantDiversified portfolioconstantly launching new product lines which has made this brand "dilute" their strengths

PhúcLong

Favorite local brandPrestigious, traditional brand

Dilmah Srilanka origin Low brand awareness, weak distribution channels

AHMAD UK qualityblack tea flavor Bergamot - the world's best brands

Low brand awareness, weak distribution channels, high price

STEP 1 - DEVELOP CUSTOMER NEEDS – DRIVEN SEGMENTATION WITH PERSPECTIVES ON COMPETITION AND SEGMENT ECONOMICS

STEP 1 - DEVELOP CUSTOMER NEEDS – DRIVEN SEGMENTATION WITH PERSPECTIVES ON COMPETITION AND SEGMENT ECONOMICS

CATEGORY TRUTHCategory truth: Provide a chance to enjoy great taste of

high quality tea bag in the most convenient way

PRODUCT TRUTHA master blend of light flavor, freshness and aroma that retain tea nature at its

best

CONSUMER TRUTHIn a busy world, I often see people hurriedly cross by

each other with defensive, reserved attitude and too much calculating for self-interest. Sometimes I just want to step back and pause to sincerely engage with others

and the world around to feel truly good.

INSIGHTI always need a peace-in-mind and inspirational “sunshine moment” in my busy life.

Drinking tea ignite a spark in my mind and lift my mood up.

STEP 2 – 5, FROM BUSINESS STRATEGY TO BRAND VISION & BRAND PROMISE

LONG TERM BUSINESS GOAL Become the top brand in Vietnam tea bag market

SHORT TERM BUSINESS GOALSGain the biggest share and build brand awareness as the authentic and positive tea brand

BRAND VISIONIconic TEA bag brand with No.1 “yellow” quality

favored by wide global fans

BRAND PROMISEProvide multi- sensorial awakening to bring revitalising uplift to body and mind, make people feel alive and bringing out the best in them

WHAT’S NEED - a drink that excite the sense together with uplift the mood and mind

FOR WHOM - young urban, 20 - 35 y/o, creative, on-the-way, excited and hunger for new experiences and ideas,

usually get stress due to busy work and the fast trace of life

DIFFERENTIATED BY - multi-sensorial awakening that lead delight to go from your taste buds into a good mood

RTBs - High quality ingredients; Know-how recipes; authentic, natural goodness

LOCAL BRAND

FOREIGN BRAND

VARIANT FLAVOR (green tea, herbal, fruity)

BLACK TEA

COSYCOSY

PHÚC LONG

PHÚC LONGTEMI

AHMAD AHMAD

LIPTON LIPTON

DILMAHDILMAH

STEP 6 – DEVELOPING BRAND POSITIONING

STEP 7 – DEVELOPING BRAND PERSONALITY

SPIRITEDFull of energy, enthusiasm, and

determination, have the courage to go out and make things happen. Don’t be afraid of

anything, don’t give up.

IMAGINATIVEEnhance creativity or inventiveness, find new ways of doing things and

to see everyday things in a different light.

HONESTBe true self, our origins, realistic,

even humble and believe tea is a good start of everything

POSITIVEAlways look for the positive, in a world with both good and bad sides. It’s not

a case of pretending everything is perfect, but being optimistic by choice, and always seeing the cup as half-full.

Step 8: STEP 8 – DEVELOPING BRAND NARRATIVE

INSIGHTWith exciting modern life and the development of advanced technology everyday, we lose our ability to engage with the world and people around us. In addition, as we focus on the serious business of surviving, we lose sight of the important business of living life.

BRAND COMMUNICATION IDEA - BE MORE TEAWe think it’s time to change how people feel about the world

KEY MESSAGE - LIVE LIFE THE TEA (POSITIVE) WAYIn a world of busy indifference, Lipton helps us to pause, re-set and choose to

engage with others and the world around us. And in so doing, it helps us feel good and bring out our best selves. Living life the Tea way revitalises us.

DESIGN IDEALipton is a light to living life the Tea way

LOGOLight + cup of Lipton tea. The light radiates out from the centre of our logo - the sun

COLORThe yellow of sun and the red of lifeblood or the heart

MOOD AND TONESyouthful, positive, imaginative, enjoyable

STEP 9 – DEVELOPING BRAND IDENTITY SYSTEM

Activation Platform: Bright Spirit – Bright Energy – Bright Bonding

Key Message: We live in a busy world. It’s easy to slip into a routine with our heads down, moving from one place or obligation to the next. Lipton wants to inspire consumers to ‘look up’, take in all that life has to offer and enjoy what you may have otherwise missed.

YELLOW LABEL Lipton– NĂNG LƯỢNG TƯƠI SÁNG TỪ THIÊN NHIÊNNot only tasty but also reserve the essence of tea leaf to help to bring many benefits of health, physical and emotional, bring the bright energy TVC 2014: https://www.youtube.com/watch?v=RVcErJPVoPATVC 2015: https://www.youtube.com/watch?v=sWMSpBCEd80

Lipton - a drink to welcome a new day full of energy and inspiration

Social Media: create engagement with consumer through inspiration posts, minigame to deliver the message: be brightly spirited with bright energy of Lipton.

STEP 10 – TRANSLATE BRAND PROMISE INTO CUSTOMER EXPERIENCE DESIGN

STEP 10 – TRANSLATE BRAND PROMISE INTO CUSTOMER EXPERIENCE DESIGN

On Lunar New Year 2016, the brand chose to say “A Tet in the warmth of companions” (Tết ấm tìnhthân) andin that sense, Lipton has just released a new commercial with the message “Warm tea makes fresh bonding” (Ấm vị trà tươi kết nối)TVC 2016: https://www.youtube.com/watch?v=nZjMBAfoI84TVC Tet 2016: https://www.youtube.com/watch?v=uK4lUpAzp5A

FRESH BONDING – BRIGHT BONDING – WARM BONDINGBONDING - Lipton no longer follows its old path but claims its tea bag as the product that brings people closer

FRESH BONDING MACHINE

STEP 10 – TRANSLATE BRAND PROMISE INTO CUSTOMER EXPERIENCE DESIGN

Tet Campaign 2017: TRAO LIPTON DREAM GIFT - TRAO LỜI CHÚC TƯƠI SÁNG

Campaigns (especially annual Tet Campaigns) encourage people to live with the bright spirit and spread it.

Give lipton to people as the present for a bright year

Tet Campaign 2016: Hãy kết nốicho một năm tươi sángChiến dịch “Hãy kết nối cho một năm tươi sáng” của nhãn hàng Lipton bao gồm các hoạt độngnhư Tạo video chúc Tết “Trao lời chúc vàng”, tích lũy điểmđể nhận bộ lịch do chính mình thiếtkế hoặc bộ quà Tết Lipton, Zalo sticker hình túitrà, minigame tổ chức trên trang fanpage thuhút được một lượngđáng kẻ người tham gia.

2008 is a year that has a great increment in Tea CategoryTan Hiep Phat and URC with “Khong Do” Tea and “C2” is the lead of RTD Category with growth rate at 800%

At that time, Pepsico, the leader of total LRB (liquid refreshment beverage), can not ignore this RTD Cat. Yet they don’t have the brand to react punctually with competitors.

EXAMPLE OF PUT BUSINESS 1ST CASE

Enormous Distribution System

Brand TEA with big awareness

They don’t have an enormous distribution system in beverage

like Pepsi

Have a great distribution system and leading product

portfolio about CSD and NCB but don’t have any product about RTD Cat

Problem is Pepsico concern that “Khong Do” and “C2” will affect to their total Share of LRB.

So they decide they have to jump in to this RTD Cat first by buying brand and developing product later

“It come from a business need– not come up with a consumer need first”

Although put business first but the result is….

Through 10 years, Lipton RTD share is just 0.2% in the total RTD CAT. Too tiny compared with B-Brand( Brand which has very small proportion in total volume share of the Category like Wonderfarm : 3.2% )

<<

“They did not satisfy consumer”

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