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Bottom-Line Branding Create a solid foundation
for profit
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New logo will increase salesWell consider
branding when business improvesCompetitor
launches new product, lets copy itCut prices,
run deals, get new customersPeople love our
product, we dont need branding
What weve heard
Trouble starts inside organizations
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Objective Sell more stuff, to more people, for
more money However
ROI fails if business strategy and brand are
not synchronizedMost marketing dollars wasted
chasing the wrong customersFew organizations
have a brand strategy that generates profits
Powerful branding delivers a consistent ROI
premium
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Relevant, differentTrustworthy,
desirableUnique, personable
What is a powerful brand?
A brand is a collection of experiences (good or
bad)
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Financial Issues Pressure Brands
Flat organic growth Mature categories, lack
innovation
Downward Pricing Low-cost competition, prospect
indifference
Impacts Category Perception Many products,
little difference
Managing the perceptions of the prospect becomes
secondary
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Change your thinking
Old Model PRODUCT BENEFITS
New Model BRAND RELEVANCE
Find prospects, sell products
Interact in prospects life
Better features, higher quality
Match product to prospect need
Declining margins
More Profitable
Stop selling features and benefits, start
marketing relevance
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Financial Benefits Brand Delivers ROI Premium
52 of prospects will pay 15 premium for brand
choice
38 will pay 25 premium
10 will pay a 35 premium
Source The Conference Board, Wharton School of
Business, 2003 Deskey conjoint analysis study
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Facts 26 of prospects buy on price if product
satisfies basic need 52 of prospects base
purchase decision on brands emotional
appeal Purchase Decisions 32 peer
recommendations 20 PR influence 17 traditional
media advertising 9 Internet 22 want something
new
Source 2004 Deskey retail products and
consumer services quantitative study
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Our Over Communicated, A.D.D. Society
Bombarded with 3000 marketing messages
daily 748 million web sites, growing
daily 650,000 retail, industrial and service
products introduced in 2004 More information
produced in the last 20 years than the last 5000
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Three foundation blocks of powerful branding
Positioning Brands guidance system
Unique Selling Proposition Reason to believe
Brand character Personality expression
ROI starts here
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Positioning Guidance system strategy
Differentiates your product / organization from
competition Ties together perceptions that exist
in the mind Turns complexity into simple,
memorable thought When established, should not
change
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Positioning starts inside the mind
Ignore the sending / selling side of the
message. Concentrate on the receiving side. How
you want the brand to be thought of. Focusing on
prospects mind, not reality of product simplifies
selection.
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Positioning example
Real / Classic
Youthful / Trendy
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Unique Selling Proposition Reason to believe
Communicates why the brand is relevant,
differentHelps persuade and sell productA
competitive weapon against competitionEvolves
over time
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Unique Selling Proposition example imaginatio
n at work
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Brand Character
Appeals to professional contractors
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Value PyramidHigher up, harder to copy, more
profit opportunity
Emotional perceptions answered
SHARE OF LIFE
Hard to deliver Hard to copy Most profitable
Functional performance achieved
EMOTIONAL BENEFITS
Skeptical / must be demonstrated
Easy to deliver Easy to copy Less profitable
FEATURES and BENEFITS
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Before starting a branding program Ask
Yourself
What kind of organization are we?What do
prospects really think of us and why?What type
of prospects do we want to attract?What do we
want to stand for?What makes our brand
different?Why should prospects care?
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These organizations get it!
Overnight Delivery
Distribution Management
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Know who they are, know what they stand for
Fashionable, trendy, cheep sheik
Lots of selection, always low prices
Were trying to figure it out
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Invented a new business model
On line auctions
Books, records, new stuff for sale
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Case Study LEVIS Invented category and lost it
Background 1853 Levi Strauss opens dry goods
store in San Francisco 1873 produces first
patented pants (Lot 501), which becomes the
standard for miners, lumberjacks and railroad
workers 1960s introduces womens line, expands
overseas 1981 sales peak, 506MM pairs annually
in the U.S. 1988 faces fashion brands and
low-price competition 1990 in serious trouble
with no answers
Success leads to arrogance, arrogance leads to
failure
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Declining icon
1980s Levis share 48.2 1988 market share
25, falling quarterly 1992 18.2 falling
monthly 1998 - 2000 Consultants called in but
failed to implement
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The True Blue Original Accept No Imitations
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LEVIS Save the brand, or chase short-run
profits?
Tiered products by price point and distribution
channel Moved manufacturing offshore Introduced
Signature line in Wal-Mart Stem short-run
losses, but weakens brand and long-term profits
Remain irrelevant with youth and fashion markets
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Bottom Line Branding Principles
Brand-Driven Marketing positioning guides all
marketing programs. Minimizes mistakes, focused
on profit prize. Increases value. Sales-Driven
Tactics low price trains prospects to buy on
deal. Loose market share, margins and profit.
Devalues brand. Marketing either builds or
weakens the brand
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Case Study BUCKS COUNTY COFFEE Increase
consumption
Background Philadelphia based, privately held,
founded 1982 Premium priced blends, mid-Atlantic
regional distribution Witnessed tremendous
growth of Starbucks Experienced flat sales,
lowered prices Marketing Underperformed
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What customers see and perceive
Methodology
Customer intercepts in Bucks County Coffee shops
and retail stores Psychographic discovery who
customers are, not what they say Brand
equity analysis Competitive analysis Pricing
strategy
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Findings
Indifference towards purchase Failed to connect
emotionally High priced commodity Nothing unique
This is a brand problem, not a marketing problem
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Recommendation
Tap into prospects emotions Develop personable
identity Update coffee shop interiors Add
unique menu items Raise prices
Starbucks gave them permission to charge 3.50 a
cup
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Consumption up 28
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Case Study FREE ENTERPRISE FUND New
organization launch
Background Washington DC based public policy
organization Pro-growth tax reform, litigation
reform, limited government Respected economists,
analysis, Washington insiders, outspoken
critics Differentiate from other 3,535 policy
organizations
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Challenger brands have a strategy and enemy
Strategy
Solicit cross-over party affiliation
donors Dont look / act like other impersonal
policy organizations Avoid social policy
emotional landmines Appeal to media, young
voters, wealthy donors, lobbyists Fund raising
through events, internet, personal relationships
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Act aggressive, not shy
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New Identity
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10 Common Branding Mistakes Recognize trouble
before it impacts your bottom line Mistake 1
Sales and market share decline Example GM
Ford ignore Japanese imports. Result
Competition arrives, attacks your weakness, and
customers defect. _______________________________
_____________________________________ Solution
Offence wins marketing wars. Fix your weakness
and attack theirs.
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10 Common Branding Mistakes Recognize trouble
before it impacts your bottom line Mistake 2
No position, no strategy, no difference Example
Burger King vs. McDonalds Result Time, money
are squandered chasing same customers with same
product. ________________________________________
_________________________________ Solution
Cant own same position as competition. Clarify
brand position inside the organization before
going outside.
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10 Common Branding Mistakes Recognize trouble
before it impacts your bottom line Mistake 3
Blurring your difference Example Volvo retreats
on safety Result Competition takes away your
position, differentiation evaporates. ___________
__________________________________________________
________ Solution Leverage your difference.
100 market share is delusional thinking.
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10 Common Branding Mistakes Recognize trouble
before it impacts your bottom line Mistake 4
Line extending into multiple categories Example
IBM integrated office equipment Result Unlikely
a brand known for one thing can be an expert in
another. _________________________________________
_________________________ Solution Customers
trust experts not generalists. Leverage your
expertise, reposition the competition.
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10 Common Branding Mistakes Recognize trouble
before it impacts your bottom line Mistake 5
Creating sub-brands Example Crown by
Rolex Result No benefit to master brand. Costs
same as launching new product. ___________________
__________________________________________________
____ Solution Create new category segments
without competition or launch new brand names in
new markets. Start a PR buzz.
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10 Common Branding Mistakes Recognize trouble
before it impacts your bottom line Mistake 6
Irrelevant identity fuels indifference Example
Readers Digest Result Outdated image doesnt
connect with prospects. __________________________
____________________________________________ Solu
tion Evolve or die. Identity is the first point
of contact with prospects its how they form
perceptions.
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10 Common Branding Mistakes Recognize trouble
before it impacts your bottom line Mistake 7
Me-Too parity products Example Reeses Pieces
vs MMs Result Underperforms, sells at lower
price. Distracts organization. ___________________
______________________________________________ So
lution Do nothing until results are proven.
Launch upgraded product at slight value or, find
category with less competition.
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10 Common Branding Mistakes Recognize trouble
before it impacts your bottom line Mistake 8
Were strong, were invincible Example
Sony Result Arrogance sets in, complacency
grows, innovation slows. _________________________
______________________________________ Solution
Business today will not sustain you tomorrow.
Organizations need to evolve their brand and
invent new products.
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10 Common Branding Mistakes Recognize trouble
before it impacts your bottom line Mistake 9
Ignoring a problem Example Firestone Result
Makes excuses, blames others, waits for it to
blow over ________________________________________
___________________________ Solution Hope is
not a strategy. Address problems quickly, admit
mistakes, take corrective action.
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10 Common Branding Mistakes Recognize trouble
before it impacts your bottom line Mistake
10 Cant articulate reason to be Example
ATT Result Competition boxes you in takes
away profit sanctuaries. _________________________
_________________________________________ Solutio
n Develop a sense of paranoia. Surround yourself
with like-minded talent. Take chances before you
are yesterdays news.
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Summary what great marketers know
Marketing programs can change, brand strategy
should not Frequency, consistency and relevance
of message build brands Focus groups are not
research Price wars and over promotion are a
race to the bottom Customers do not destroy
brands, companies do
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