Meaningful Difference M A R K E T I N G S T R AT E G I E S T O G R O W

T H E VA L U E O F Y O U R B R A N D

a brand? A set of associations (ideas,

memories and feelings) in the mind of a consumer

What is

What makes a brand valuable?

Successful brands build associations that deliver these commercial benefits

I N C R E A S I N G T H E L I K E L I H O O D

that a consumer will buy

I N C R E A S I N G H O W M U C H

consumers will pay €

This learning was pooled to drive a ground-breaking R&D project in 2012

6

Initial Pilot

5 countries

12 categories

21 studies

300+ brands

8000 consumers

Further development work through BrandZ:

>40 countries, >5000 brands, >300,000 consumers

Included Respondent level link

to actual purchase data…

…and neuroscience metrics

The power of the brand to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient the brand is to consumers.

€

MEANINGFUL Consumers feel an affinity for the brand or think it meets their needs

The power of the brand to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient the brand is to consumers.

€

MEANINGFUL

DIFFERENT

Consumers feel an affinity for the brand or think it meets their needs

Feels different from other brands or sets the trends for the category

The power of the brand to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient the brand is to consumers.

€

MEANINGFUL

DIFFERENT

SALIENT Comes to mind quickly and readily when activated by ideas relating to category purchase

Consumers feel an affinity for the brand or think it meets their needs

Feels different from other brands or sets the trends for the category

The power of the brand to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient the brand is to consumers.

€

MEANINGFUL

DIFFERENT

SALIENT Comes to mind

quickly and readily

when activated by

ideas relating to

category purchase

Consumers feel an

affinity for the brand

or think it meets their

needs

Feels different from

other brands or sets

the trends for the

category

The power of the brand to deliver volume share and justify a higher price point is dependent on how meaningful, different and salient the brand is to consumers.

BARRIERS FACILITATORS

IN-MARKET

€

Apple: unique personality and tangible product innovation =

differentiation worth paying for

137 248 131

137 158 272

Avr = 100

$185b

MEANINGFUL DIFFERENT SALIENT

Avr = 100

Coca-Cola: first to mind for billions of thirsty people =

dominant volume share for impulse category

$78b

2012 Index across all global categories and countries (Apple in 34 categories. Coca-Cola in 20)

13

144 136 223

MEANINGFUL DIFFERENT SALIENT

Avr = 100

2012 Index across all global categories and countries

224 159 218

Avr = 100

116 175 87

Avr = 100

A.

B.

C.

Which brand is which??

For 3 points…

14

144 136 223

MEANINGFUL DIFFERENT SALIENT

Avr = 100

2012 Index across all global categories and countries

224 159 218

Avr = 100

116 175 87

Avr = 100

A.

B.

C.

MEANINGFUL

DIFFERENT

SALIENT Comes to mind quickly and readily when activated by ideas relating to category purchase

Consumers feel an affinity for the brand or think it meets their needs

Feels different from other brands or sets the trends for the category

To be truly business relevant measures of equity need to tie directly to financial outcomes. So, we combine meaningful, different and salient into headline measures of equity that align to commercial outcomes.

€

Premium

Potential

Power

Business outcomes from meaningful, difference and salience

Premium

PRICE INDEX =

SELLING AT A HIGHER PRICE

Potential

VALUE SHARE GROWTH =

SELLING AGAIN IN THE FUTURE

VOLUME SHARE =

SELLING MORE

Power

17

Case Study -

World revolves around you

In 2004, O2 turned the UK mobile market on its head, with a campaign that sought to put consumer needs front and centre

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1. Whole business uniting behind shared brand KPIs ahead of short-term sales KPIs.

2. Leveraging every consumer touchpoint

3. Continual evolution of the offer and communications

O2 moved from 3rd to 1st in 6 years

2002 2008

MARKET SHARE

2002 2008

o2

VF

Orange

POWER SHARE

MEANINGFUL

127

20 Case Study -

1. Selective launch distribution: • Specialist, local sales reps identify ‘hot-spots’ where opinion

formers hang-out.

• Approach DJs, bar tenders and trendsetters

• Leave empty cans on tables and in bins

• Shops near universities and gyms

2. Sampling and education, but keep it ‘Edgy’! • ‘Wings team’, branded cars

• Drives trial, educates and creates Buzz

• ‘Student brand managers’

• Must be ‘trendsetters’.

• In the UK, Red Bull still spend as much on sampling as on ATL activity

3. Sponsor music events, parties and extreme sports

Launch Strategy: “We don’t bring the product to the people. We bring people to the product” – Dietrich Mateschitz, Red Bull Co-founder

Became known as:

• ‘Liquid Cocaine’

• ‘Speed in a can’

• ‘Liquid Viagra’

“The rumours never hurt” – Dietrich Mateschitz

Red Bull have consistently fought off the challenge of bigger spending competitors.

As penetration grows, so does the scale of the activity, but it’s always unusual, edgy and true to the brand philosophy…

…determine your point of difference, then decide the best way to amplify it, not the other way round!

And they don’t worry about pleasing all the people all of the time…

77 138 88

MEANINGFUL DIFFERENT SALIENT

Avr = 100

…so they are not meaningful to everyone. But they are certainly different and so can justify a huge price premium to those who do find them meaningful

Price premium over branded alternatives Price premium over shop’s own

+30%

+300%

24

Case Study -

British Airways is the airline most synonymous with the category…

25

…but by owning such an important need state, EasyJet is as likely to come to mind when people actually seek out their next flight

Needs = Competitive price

= EasyJet

Airline = BA

Traditional unaided awareness Needs based salience

But as other airlines challenged Easyjet’s ownership of price, EasyJet needed to shout a little louder

26

Europe by Easyjet helped put them back top-of-mind

27

120

140

160

2007 2008 2009 2010 2011 2012

Salience European seats sales Share price = 4:1 campaign ROI

+18%

+104%

Volume share

Price premium

Value share 4x

13%

5x Capture

Command A

Grow

The ultimate benefit is financial success Meaningfully different and salient brands …

Source: Shopcom panel data merged with equity survey responses. 1600 consumers, 65 brands, 4 categories.

Source for Value Share Growth: MB validation dataset, including 350 brands from diverse categories (CPGs and non CPGs).

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What’s best for my brand?

1. Role of brand: Volume or Margins?

2. Long or short-term?

3. Category dynamics 4. Where your brand lacks?

MEANINGFUL

DIFFERENT

SALIENT

Other things to consider:

1. Brand strategy Which image associations will work for me? What’s the size of the prize?

2. Unconscious drivers of brand decisions What about raw emotion? And instant / intuitive meaning?

3. Tactical in-market levers – purchase window How well do we convert sales at point of purchase? Which point of purchase levers could deliver more for me? What’s the size of the prize?

MEANINGFUL

DIFFERENT

SALIENT Comes to mind

quickly and readily

when activated by

ideas relating to

category purchase

Consumers feel an

affinity for the brand

or think it meets their

needs

Feels different from

other brands or sets

the trends for the

category

Brand equity deep-dive research (eg BrandDynamics) for depth of exploration in these areas and quantification of the expected return

BARRIERS FACILITATORS

IN-MARKET

€

Deep-dive image diagnosis and simulation to inform strategy

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+5%

+3%

+1%

+3%

+1%

+1%

+2%

The flexible and bespoke models reveal:

1. How image statements group into unique territories in your category.

2. How each brand performs on the statements and overall territories.

3. The importance of each statements and territory.

4. The impact a given statement could have on image territories and overall equity.

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Reflective, deliberate processing Rule-based, Effortful, Slow

Instinct and Intuition Automatic, Easy, Fast

Which one of these images creates the strongest instinctive emotional response?

34

Which one of these images creates the strongest instinctive emotional response?

35

The Cadbury brand adds to chocolate’s instinctive appeal

EP Context Study

36

The instinctive emotional reaction can be a big part of what creates volume demand and justifies a price premium

0.07

0.11

0.21

TESCO CHOCOLATE CHOCOLATE CADBURY

Impact of brand on intuitive emotion within a category

But brand equity is not the only way to generate sales…

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An holistic research programme will help you understand all aspects of the consumer choice. To inform long-term brand building and short-term tactical levers.

11.4%

8.0%

5.5% Diverted

Converted

Fulfilled

Continue with promotions and great fixture positioning

Review packaging. Packaging losses, particularly to Fructis.

Total of $15m per year

Elevate functional advantages to emotional benefits

Make hair look really good Make you feel confident about yourself

The ingredients for brand driven commercial success

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Long-term brand value comes from:

Meaningfully different associations for your brand

Instant meaning gives you a head start

All for nothing if you neglect the purchase window

MEANINGFUL

DIFFERENT

SALIENT

THANK YOU!