proprietary and confidential do not distribute making competitors irreverent david a. aaker vice...
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Proprietary and confidential Do not distribute
Making Competitors Irreverent
DAVID A. AAKERVice Chairman, Prophet
Blog: davidaaker.com
Top Marketing Forum, MoscowApril, 2012
Brand Relevance 2
BrandRelevance
MarketDynamics
Brand Relevance 3
0
10
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1971 1975 1980 1985 1990 1995 2000 2006
Kirin
Asahi
Asahi-Kirin Beer War
Brand Relevance 4
Brand PreferenceBrand Relevance
SUV BMW
Select Brand to Buy
Lexus BMW Cadillac
Select Product Category or Subcategory
Customer Decision Process
DetermineBrands
To Consider
Brand Relevance 5
Routes to Winning
BrandPreference
BrandRelevance
VS.
Competitor Brand
Not Preferred
Competitor Brand
Not Considered
WinningMeans
Brand Relevance 6
Innovation Continuum
Innovation Incremental Substantial Transformational
OfferingEnhancement
NoticeableImpact on
Brand Preference
New CategoryOr Subcategory
GameChanger
Body Armor with
duPont Kelvar
Hybrid &Electric
Fleet
Brand Relevance 7
Test—New Category/Subcategory?
• Can we deliver?• Is there a “must have”?• Business worthwhile?• Legs?
Brand Relevance 8
The Payoff
1982-1998 No Competition
Brand Relevance 9
The Pay Off
• 108 Business launches: Those creating new categories subcategories:
• 14% of sample• 38% of revenue• 61% of profits
• McKinsey Study: 1,000 firms, 40 years• New entrants• Return premium over average for their industry• First year 13%• 3% in fifth year• 1 % in tenth year
• New Product Success Correlated with Differentiation
Brand Relevance 10
How?
Create Barriers to Competitors
Become the Exemplar
Brand Relevance 11
Create Barriers
• Execute over the top
• Continuously innovate
• Branded differentiators
Nano Shuffle Touch Ipad
Brand Relevance 12
Alpine Class Fill
OuterStyle OuterStyle
The Power of Brands
Proprietary and Confidential PROPHET13
Branded Ingredients
Shampoo/ConditionerWith
Weightless Moisturizer
Brand Relevance 14
Branded Service
Proprietary and Confidential PROPHET15
Branded Package
Brand Relevance 16
Branded Technology
Brand Relevance 17
How?
Create Barriers to Competitors
Become the Exemplar
Brand Relevance 18
Become the Category or Subcategory Exemplar
The Exemplar BrandRepresents Category or Subcategory
Defines
Connects
Brand Relevance 19
Becoming an Exemplar
• Market the category/subcategory and not the brand
• Be the early market leader
• Be the authentic brand
Brand Relevance 21
You do not merely want to be considered just the best of the best,
You want to be considered the only onewho do what you do.
Jerry Garcia, The Grateful Dead
Brand Relevance 22
Staying Relevance
No longer makewhat customersare buying
Lose EnergyOr Credibility
Energy bar for Women
Brand Relevance 23
BrandRelevance
MarketDynamics
Proprietary and confidential Do not distribute
Making Competitors Irreverent
DAVID A. AAKERVice Chairman, Prophet
Blog: davidaaker.com
Top Marketing Forum, MoscowApril, 2012