prism of mercedes & bmw
TRANSCRIPT
CORPORATE BRANDINGSamit Sinha, Saturday January 30 2010
Demystifying The World of Brands
A Brand?
First, a Sign of Ownership
Later in the Wild West
Identification Mark
The Evolution of Brands
IdentifierTrademark, sign of origin or source
DifferentiatorUnique attributes
DiscriminatorIndication of superiority on specific dimensions
RelationshipShared meanings & beliefs
The Brand Is At The Heart of Business
AND ITS GREATEST ASSET
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
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
A Strong BrandCreates a common frame of reference for all constituencies(It is not just a name, logo or tag-line)
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
CORPORATEBRAND
PolicyMakers
Public
Partners
Suppliers
End Users
Customers
Investors
Employees
Multiple Stakeholders
The Brand’s 3 Faces
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
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
Experience Matters Most“Everyone experiences far more than he understands – yet it is experience, not understanding, that influences behavior.”
Marshall McLuhan
EXPERIENCES
Environments
Behavior
Product
Service
PROMISES
Media
Literature
Signage
Advertising
Making Experience = Promise
BRANDMANAGEMENT
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?
The Branding Roadmap
INTERNAL DIMENSIONS EXTERNAL DIMENSIONS
THE BRAND’S FOUNDATION
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
The Vision Framework
Core ideologyCore purpose + core values
Envisioned futureGoals + vivid description
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”
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”
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)
Vivid Descriptor
What Gives Us Credibility
Our field of competence or legitimacy
What we do best Checking for demonstrable evidence
Pedigree, track record, technology, something else…?
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
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
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…
Framework of Motivations
BELONGINGFEMININE
GROUP
SUCCESSMASCULINE
SELF
SAFETYRISK AVERSEINTROVERT
CHANGERISK TAKINGEXTROVERT
The Archetypes
KING
INNOCENT
DREAMER
MOTHER
JESTER
WISE
HERO
REBEL
FRIEND
MAGICIAN
EXPLORER
LOVER
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
The Brand Space & Boundaries
The absolute ESSENCE of the brand
How far can this extend?
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
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
What Works Where
MonolithicFunctionalRelational
ProductExperiential
SegmentSymbolic
Product-SegmentSymbolic & Experiential
FamilyMore than two branding concepts in use
Brand Architecture Spectrum
Brand Identity
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
• Perfectionist
• Sophisticated
• Dependable
• Name• 3-pointed
star• Premium
• Build quality
• Rich & famous
• Badge of
success• German engineering
• Successful owner
EngineeringPerfection
Mercedes
• Young
• Exciting
• Passionate
• Sporty
• Name
• Propeller
• Premium
• Rich & famous, youthful
• Pleasure Machine
• German performance
• Driver, car lover
The ThrillOf Driving
BMW
Manifesting The BrandOr how the brand expresses itself
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
Brand’s Messages
Message tone & contentContextObjectiveTargetPropositionSupportPersonalityKey insight
In all communicationAdvertisingPRDirect
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
Two Axes Four CulturesS
ocia
bilit
y
Solidarity
Networked Communal
Fragmented Mercenary
High
Low High
Enculturation
To align employees with brand values
Input into HR policiesRecruitment criteriaAppraisalTraining & developmentOther HR initiatives
Creating Brand ChampionsSABOTEURS- Working activelyagainst the idea
CYNICS- Not involvedwith the idea
AGNOSTICS- Interested butnot committed
CHAMPIONS- Storytellerswho spread the idea
Thank You
Questions?