gfk brand architect

The art and science of building irresistible brands

GfK Belgium NVFreyia Han & Karolien SmetsBREAK OUT SESSION

GfK Brand Architect

“People First”

GfK Brand Architect2

Connections that are built

Values that are exchanged

Feelings that are evoked

“People First”


BRAND

People now expect something special from the brands they buy

GfK Brand Architect4Source: GfK Consumer Life, 2020

71% think experiences are more

important than possessions

90% of decisions are deeply

rooted in emotions

59%will select a brand because

it supports a cause

63%will buy brands that appeal

to their beliefs/values

COVID-19 accelerated the trend of focusing on people and on how a brand is experienced

GfK Brand Architect5Source: Google Trends (“people first” - worldwide)

2010

20192020

2021

Brand experience matters even more


LockdownsOffline

shoppingOnline

shopping

✓ Sales staff✓ Product placement✓ Distribution

✓ Comparing prices ✓ Filtering on brand

In-store Online

Poll


Note: Here we will do a poll with 2 questions

To what degree did you change your

marketing and / or branding due to

COVID-19?

What did you change exactly?

Corona washing

GfK Brand Architect8April 2020

The new “green washing”?


“Coca-Cola in the UK just

stopped advertising for a while, understanding that people were

thinking about other things at the moment. I think that's a much

better thing to do than rushing down to your agency and saying:

"We've got to have a Covid ad.“”

Byron Sharp

But…

“Increasing advertising share in

contractions has a stronger effect on profit and market share than

increasing advertising share in expansions.”

Steenkamp & Fang (2011)

What are theright choices?


And not so right...Right...


“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.”

—Charles Darwin


What sets the winning brands apart from the rest?

GfK Brand Architect13Source: GfK foundation research

Higher market share for brands that generate strong experiences


This new era requires a new brand intelligence approach

GfK Brand Architect


Brand insights for the new era

It’s the only way to understand howyour brand activity drives results


Consumers’ predispositionto buy and pay a premium for

your brand

predisposition to buy your brand

predisposition to pay a premium for your brand

Brand Strength Index

Brand Choice

Brand Premium

X

The Brand Strength Index sums up the strength of your brand in one simple metric that’s unique to GfK

Foresee what will actually happen in the market

GfK Brand Architect

► Highly correlated with market performance

Rev

enue

Sha

re

Brand Strength Index

R2 = 85%

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We derive these metrics from simulatingreal world brand choices


Our Brand Choice Evaluator puts consumer choice into relevant contexts by means of realistic buying-like scenarios so that you can:

► More accurately and confidently predict their brand choices, better than by asking direct questions

► Spot the real opportunities and identify threats

► Understand brand switching dynamics and customer loyalty If these were the only available options, which

of the following products would you buy?

Brand B

Brand B

Brand A

Brand A

Brand F

Brand F

Brand G

Brand G

Brand C

Brand C

Brand E

Brand E

Brand D

Brand D

Brand H

Brand H

We deliver a 360° understanding of how consumers experience your brand


1

2

3

4

Does the brand tap into the right cues to gain relevance?

Is the brand’s positioning clear and differentiated?

Does it connect with its target audience on a deep and meaningful level?

Does the brand consistently create positive memories?

Focus on Samsung

What’s in a brand?

Apple’s revenue far surpasses Samsungin the UK smartphone market

GfK Brand Architect21Source: GfK Foundational Research – Smartphone market, UK

69%

24%

Brand revenue share

21

Samsung needs to builda stronger brand


Samsung needs to builda stronger brand.

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“The main purpose of branding is to get more people to buy morestuff for more years at a higher price.”(Marty Neumeier)

9.392.81

How strong is theSamsung brand?

GfK Brand Architect23Source: GfK Brand Architect (UK Smartphone market | November 2020). Base: All respondents (n = 204)

Size of the square represents the

contribution to the Brand Strength Index

1.00

Category Average

Consumers are more willing to buy (Brand Choice) and are more willing to pay a premium

(Brand Premium) for Apple smartphones compared to Samsung smartphones.

Winning from Apple is very difficult to achieve within the current brand landscape

GfK Brand Architect

Source: GfK Brand Architect (UK Smartphone market | November 2020). Base: All respondents (n = 204)

Apple has a very loyal consumer base: 49% of Apple

considerers prefer Apple, which is much higher than

the category average (14%). It will be very difficult for

Samsung to convince this loyal base on the short-term.

Apple has a very low affinity with other brands

(including Samsung): Whether Apple is becoming a

stronger or weaker brand affects less than 2% of target

groups choice.

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In the short-term, Nokia and Huawei are the main competitors to watch for volume

GfK Brand Architect25Source: GfK Brand Architect (UK Smartphone market | November 2020). Base: All respondents (n = 204)

If Samsung becomes stronger due

to market condition changes,

They could add 14% to their current customer base (13%), thus adding a total of 2% on top of their current base of 13%, leading to 15%.

Out of 14% ….

▪ 6% comes from

▪ 3% comes from

If Samsung becomes weaker due

to market condition changes,

They could lose 4% from their current customer base (13%), thus subtracting a total of 1% from their current base of 13%, coming down to 12%.

Out of 4% ….

▪ 2% comes from

▪ Less than 1% comes from

What actions does Samsung need to focus on?

GfK Brand Architect26Source: GfK Foundational Research – Smartphone market, UK

Samsung needs to become more relevant

Samsung does not have as clear an image

% of associations between the brand and the relevant purchase cues

48% 31%

A modern brand 70% 58%

People seem to buy these brands 68% 50%

Easy to identify 67% 48%

Samsung could work on creating

positive memorable experiences

Samsung doesn’t inspire closeness

51% 41%

% of UK consumers who know these brands and feel close to them

72% 69%

% of UK consumers aware of these brands had positive memorable experiences with them

Which image aspects are relevant?

Source: GfK Brand Architect (UK Smartphone market | November 2020 for Brand Performance and November – December 2020 for Driver Analysis). Base: Those who are aware of brand & brand asked

Brand Knowledge

Top 5 image drivers’ contribution to Brand Strength Index

7%

7%

6%

6%

5%

Exceeds my expectations

Sets the standards for others to follow

Is a modern brand

Meets my needs

Is really different from other brands in the category

Brand Strength

Index


Samsung needs to improve differentiation,exceeding expectations and setting standards…

GfK Brand Architect28Source: GfK Brand Architect (UK Smartphone market | November 2020). Base: Those who are aware of brand & brand asked (Samsung n = 173; Apple n = 168; Google n = 117; Huawei n = 151; Nokia n = 164)

30%

38%

58%50%

30%

49%

58%

70%53%

47%

Samsung Apple Google Huawei Nokia

Brand Knowledge

Brand Performance on Top 5 Brand Strength Index image drivers

For Samsung to maintain the current performanceFor Samsung to maintain the current performance

For Samsung to improve the current performance



And which are the channels that should be the focus of the marketing mix?

Source: GfK Brand Architect (UK Smartphone market | November 2020 for Brand Performance and November – December 2020 for Driver Analysis). Base: Those who are aware of brand & brand asked

Top 5 touchpoints’ contribution to Brand Strength Index

11%

11%

10%

8%

7%

Talked about the brand with friends, family or co-workers

The brand's website

Looked at the brand in a store

TV/cinema ad

Social media

Brand Strength

Index

Brand Experience


Making Samsung stronger


BRAND EXPERIENCE

BRAND KNOWLEDGE

MENTAL AVAILABILITY

BRAND ATTACHMENT

Share of Mind: 31% (second highest after Apple: 48%)

Brand Attachment: 41 (second highest after Apple : 51)

Top image aspects to maintain: • Is a modern brand• Meets my needs

RBX score: 57% (vs. 61% Apple) Brand Consistency: 75% (vs. 77% Apple)

Top of Mind: 28% (second highest after Apple: 46%)

Apple is more polarizing, especially in Self-Connection.

Image aspects to improve: • Exceeds my expectations• Sets the standards for others to

follow • Is really different from other

brands in the category

Top 5 touchpoints to focus on:• Word of mouth • Brand website • Brand in a store • TV/cinema ad• Social media

Brand Strength Index Brand Choice Brand Premium

2.81 13% 2.14

31 GfK Brand Architect

GfK Brand Architect Brand insights for the new era

Develop successful brand strategies that connect with your consumers, increase your brand equity, and deliver remarkable brand experiences that keep people coming back for more.


Consumers are constantly exposed to brand messaging and other stimuli and so their purchase decision represents the combination of both emotional and rational aspects. Therefore, it is essential to understand all the factors that make a consumer prefer one brand over another. GfK’s new brand framework helped us do exactly this. Using the approach, we understood better how purchase decisions were made, and in particular how and why consumers switch between brands. GfK Brand Architect gave us new insights and it helped us develop more personalized experiences that better engaged with our customers, and ultimately, help create their lifetime value for Nespresso.”

Graciela BastidaCRM Manager at Nespresso México

Thank you!

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Questions?

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GfK Belgium NV

Freyia HanSenior Executive Marketing and Consumer Intelligence

+32 16 74 24 31

[email protected]

GfK Belgium NV

Karolien SmetsConsultant Marketing and Consumer Intelligence

+32 16 74 29 06

[email protected]

GfK Brand Architect

gfk brand architect

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