prism of mercedes & bmw

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CORPORATE BRANDING Samit Sinha, Saturday January 30 2010

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Page 1: Prism of Mercedes & Bmw

CORPORATE BRANDINGSamit Sinha, Saturday January 30 2010

Page 2: Prism of Mercedes & Bmw

Demystifying The World of Brands

Page 3: Prism of Mercedes & Bmw

A Brand?

Page 4: Prism of Mercedes & Bmw

First, a Sign of Ownership

Page 5: Prism of Mercedes & Bmw

Later in the Wild West

Page 6: Prism of Mercedes & Bmw

Identification Mark

Page 7: Prism of Mercedes & Bmw

The Evolution of Brands

IdentifierTrademark, sign of origin or source

DifferentiatorUnique attributes

DiscriminatorIndication of superiority on specific dimensions

RelationshipShared meanings & beliefs

Page 8: Prism of Mercedes & Bmw

The Brand Is At The Heart of Business

AND ITS GREATEST ASSET

Page 9: Prism of Mercedes & Bmw

Brand’s Financial Value

Market capitalization– (less) debt

= Value of company– (less) replacement cost of tangible assets– (less) cost of intangible assets (know-how, patents,

certifications…)

= Financial value of brand

Page 10: Prism of Mercedes & Bmw

The Brand Asset

The brand’s real value is in its ability to assure continued future income by

Attracting customersEncouraging repeat transactionsReducing price sensitivityCreating evangelists

Fostering unflinching loyalty

Page 11: Prism of Mercedes & Bmw

A Strong BrandCreates a common frame of reference for all constituencies(It is not just a name, logo or tag-line)

Page 12: Prism of Mercedes & Bmw

Product Vs Corporate Brands

Product brandDoesn't rely on association with organization, but with a category

Corporate brandRelies on association with parent organization

Serves as an "umbrella" & transfers brand equity to a range of sub-brandsAlso assists companies in relating to key stakeholders

Page 13: Prism of Mercedes & Bmw

CORPORATEBRAND

PolicyMakers

Public

Partners

Suppliers

End Users

Customers

Investors

Employees

Multiple Stakeholders

Page 14: Prism of Mercedes & Bmw

The Brand’s 3 Faces

Page 15: Prism of Mercedes & Bmw

Must Unite to Singular Identity

Direct StakeholdersInvestors/Banks/FIsEmployeesPartners/Vendors

ENTERPRISEA successfulcommercial

entity

Direct StakeholdersGeneral PublicGovernmentMedia

INSTITUTIONA sociallyrelevant

corporate citizen

Direct StakeholdersCustomersTrade

PRODUCTA seller of

product & serviceofferings

BRANDFACETS

UnifiedIdentity

Page 16: Prism of Mercedes & Bmw

Brand Image Vs Identity

The brand image can only be controlled by first establishing the brand identity

Brand imageHow the brand is perceived

Brand identityHow we want the brand to be perceived

Page 17: Prism of Mercedes & Bmw

Experience Matters Most“Everyone experiences far more than he understands – yet it is experience, not understanding, that influences behavior.”

Marshall McLuhan

Page 18: Prism of Mercedes & Bmw

EXPERIENCES

Environments

Behavior

Product

Service

PROMISES

Media

Literature

Signage

Advertising

Making Experience = Promise

BRANDMANAGEMENT

Page 19: Prism of Mercedes & Bmw

Defining The Brand Charter

Internal dimensions – organizationalVision Framework

What is the brand’s core ideology and goals?Credibility

What does the brand do best? Can it be leveraged?

External dimensions – category (consumer, competition)Relevance

Whose and what need will the brand fulfill? Differentiation

What will make the brand unique?

The brand spaceBrand essence, architecture & identity

What is the brand’s core (its unchanging self)? Where all can it extend?What will make the brand identifiable?

Page 20: Prism of Mercedes & Bmw

The Branding Roadmap

INTERNAL DIMENSIONS EXTERNAL DIMENSIONS

THE BRAND’S FOUNDATION

Page 21: Prism of Mercedes & Bmw

A Meaningful Vision

An inspirational tool for long-term successDefines who we are

Why we exist?What values that guide our actions?

Gives us directionThe destinationThe journey ahead

Page 22: Prism of Mercedes & Bmw

The Vision Framework

Core ideologyCore purpose + core values

Envisioned futureGoals + vivid description

Page 23: Prism of Mercedes & Bmw

Purposeful Statements

Purpose of Nike“To experience the emotion of competition, winning and crushing competitors”

Purpose of McKinsey“To help leading corporations and governments be more successful”

Purpose of Disney“To make people happy”

Page 24: Prism of Mercedes & Bmw

Core Values Illustrations

P&G: Product quality and honest business“When you cannot make pure goods of full weight, go to something else that is honest, even if it is breaking stone”

HP: Respect and concern for the individual“Do unto others as you would have them do unto you”

Disney: Childlike zeal“No cynicism, creativity, dreams and imagination, fanatical attention to consistency and detail”

Page 25: Prism of Mercedes & Bmw

Big Hairy Audacious Goals

Quantitative“Become a $ 125 billion company by the year 2000” (Wal-Mart, 1990)

Qualitative“Become the company that most changes the world-wide image of Japanese products as being poor quality” (Sony, early 1950s)“Become the best entertainment company in the world” (Walt Disney)Become the most powerful, the most serviceable, the most far-reaching world financial institution that has ever been” (Citibank)

David Vs. Goliath“Crush Adidas” (Nike, 1960s)

Role model“Become Harvard of the West” (Stanford University)

Simply audacious“…put a man on the moon by the end of the decade…” (JFK, 1962)

Page 26: Prism of Mercedes & Bmw

Vivid Descriptor

Page 27: Prism of Mercedes & Bmw

What Gives Us Credibility

Our field of competence or legitimacy

What we do best Checking for demonstrable evidence

Pedigree, track record, technology, something else…?

Page 28: Prism of Mercedes & Bmw

Relevance

Understanding the different category needs from each stakeholder group

FunctionalSocialPsychological

Seeing the market as composed of different need segments

Segmentation strategyDiscovering relevant need-gaps Identifying best-fit segment

Page 29: Prism of Mercedes & Bmw

2 Views On Human BehaviorFreud

No fundamental difference between humans and animals

Behavior is deterministic Determined by anterior factors, either inherited or environmental, rather than by free will

Air, water, food, shelter, rest, sex and pain avoidance is all that we really need

People are fundamentally trustworthy, self-protecting, self-governing, and naturally inclined toward growth and love

Cruelty, violence and dishonesty are not typical of human nature, but occur only when people are deprived of their needs

Maslow

Page 30: Prism of Mercedes & Bmw
Page 31: Prism of Mercedes & Bmw

Strong Brands Connect With Meta-needs

Truth, goodness, beauty, unity, holism, harmony, aliveness, uniqueness, perfection & necessity, completion, justice, order, simplicity, richness, effortlessness, playfulness, self-sufficiency, meaningfulness…

Page 32: Prism of Mercedes & Bmw

Framework of Motivations

BELONGINGFEMININE

GROUP

SUCCESSMASCULINE

SELF

SAFETYRISK AVERSEINTROVERT

CHANGERISK TAKINGEXTROVERT

Page 33: Prism of Mercedes & Bmw

The Archetypes

KING

INNOCENT

DREAMER

MOTHER

JESTER

WISE

HERO

REBEL

FRIEND

MAGICIAN

EXPLORER

LOVER

Page 34: Prism of Mercedes & Bmw

Differentiation

Our competitive point-of-difference

The unique association that we can usurpUnderstanding the competition

What key associations do they own?

The value proposition must naturally flow from this unique association in the brand’s

Features/AttributesFunctional benefitsPsychological benefitsExpressive codes

Page 35: Prism of Mercedes & Bmw

The Brand Space & Boundaries

The absolute ESSENCE of the brand

How far can this extend?

Page 36: Prism of Mercedes & Bmw

Brand Architecture Strategies

Monolithic brandingOne single brand across products and target segments

Product brandingDifferent brands/sub-brands for each product category

Segment brandingDifferent brands/sub-brands for each target segment, within same product category

Product-Segment brandingDifferent brands/sub-brands for each product category and target segment

Family brandingUsing “parent” brand at various levels of endorsement to sub-brands

Page 37: Prism of Mercedes & Bmw

4 Branding Concepts

FunctionalProduct benefit

Through technical superiority, durability, reliability etc.

ExperientialSensual experience

Building up associations with the 5 senses

SymbolicExpress user personality

Values & status, self-esteem

RelationalEmotional attachment

To impart a sense of familiarity with the brand

Page 38: Prism of Mercedes & Bmw

What Works Where

MonolithicFunctionalRelational

ProductExperiential

SegmentSymbolic

Product-SegmentSymbolic & Experiential

FamilyMore than two branding concepts in use

Page 39: Prism of Mercedes & Bmw

Brand Architecture Spectrum

Page 40: Prism of Mercedes & Bmw

Brand Identity

Page 41: Prism of Mercedes & Bmw

PersonalityIts implicit character

Reflection

Brand user’s public perception

RelationshipIts role in

people’s lives

Culture

The brand’s core values

Self-image

Brand user’s self-perception

picture of sender

picture of receiver

inte

rnal

exte

rnal

BRAND ESSENCE(The most permanent

part of the brand)

Clarifying Brand IdentityKapferer’s Brand Identity Prism

Physique

Its sensorial associations

Page 42: Prism of Mercedes & Bmw

• Perfectionist

• Sophisticated

• Dependable

• Name• 3-pointed

star• Premium

• Build quality

• Rich & famous

• Badge of

success• German engineering

• Successful owner

EngineeringPerfection

Mercedes

Page 43: Prism of Mercedes & Bmw

• Young

• Exciting

• Passionate

• Sporty

• Name

• Propeller

• Premium

• Rich & famous, youthful

• Pleasure Machine

• German performance

• Driver, car lover

The ThrillOf Driving

BMW

Page 44: Prism of Mercedes & Bmw

Manifesting The BrandOr how the brand expresses itself

Page 45: Prism of Mercedes & Bmw

Brand’s Sensorial Signatures

Making the brand identity reflect in the sensorial experience

Designing the brandBrand’s visual identity

How the brand looksLogo, colors, graphics…

Also how the brand feels, sounds, tastes & smells

Page 46: Prism of Mercedes & Bmw

Brand’s Messages

Message tone & contentContextObjectiveTargetPropositionSupportPersonalityKey insight

In all communicationAdvertisingPRDirect

Page 47: Prism of Mercedes & Bmw

Brand Culture

Critical to internalize the brand values within the organization

“Culture is always a collective phenomenon, because it is at least partly shared with people who live or lived within the same social environment, which is where it was learned. It is the collective programming of the mind which distinguishes the members of one group or category of people from another.”

Geert Hofstede

Page 48: Prism of Mercedes & Bmw

Two Axes Four CulturesS

ocia

bilit

y

Solidarity

Networked Communal

Fragmented Mercenary

High

Low High

Page 49: Prism of Mercedes & Bmw

Enculturation

To align employees with brand values

Input into HR policiesRecruitment criteriaAppraisalTraining & developmentOther HR initiatives

Page 50: Prism of Mercedes & Bmw

Creating Brand ChampionsSABOTEURS- Working activelyagainst the idea

CYNICS- Not involvedwith the idea

AGNOSTICS- Interested butnot committed

CHAMPIONS- Storytellerswho spread the idea

Page 51: Prism of Mercedes & Bmw

Thank You

Questions?