1. Branding & Positioning
Tuesday, 7 november 2013

2. Agenda
-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand?
-How to build an efficient Brand architecture
-What about brand loyalty?
-How to create value for your brand
-The future of brands: some critical questions and insights
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3. THoM „s 3 main service offerings
Temporary Marketing
Support
Marketing Consultancy
Marketing Talent
Development
To bridge Capacity &
Competence gaps
To tackle strategic
marketing
challenges
To develop, counsel
& train marketers on
the job
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4. What are your expectations of today?
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5. Brands in the FACTS vision
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6. Crisis
Marketing overload
Keuzestress
Short term tactics
.....
Credibility van marketeer onder vriespunt onderzoek readers digest credibility
advertising industry
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7. Marketing tactics don‟t build long term brand equity
Expected budget evolutions for tactics
Direct Marketing
Direct Marketing
18%
19%
Brand Activation
Brand activation
15%
3%
Instore marketing
-6%
Guerilla marketing
Image campaigns
Image campaigns
-1%
-3%
-4%
-12%
Sampling
-4%
Gamifaction
-5%
Product placement
-8%
-13%
Events and trade fairs
-15%
Sponsoring -37%
Sponsoring
-19%
Congress/trainings
Congress / training
#YMS2013
6%
3%
-28%
Others
Public relations
18%
-19%
2%
-30%
2012 Net difference (%increase-%decrease)
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2013 Net difference (%increase-%decrease)
N=207

8. THoM believes marketing should become more FACTS
Strategic consistency
Brand consistency
Simplicity & relevance
Customer centricity
Build knowledge
Focused team
continuity
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Detect trends & act
Early warning systems & processes
Agile & up to date organization
Built around customer engagement
Willingness to change
Flexibility & Speed
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Innovative company culture
Diversity of profiles
Idea generation
Idea valuation
Porosity & open-mindedness
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KPI’s & dashboards
Scenario analysis & ROMI
Connect with marketing intelligence
Analytical culture & skills
• People: yours & every stakeholder
• Planet: ACT on innovation, packaging, promotion...
• Profit: business-minded marketers
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9. FACTS revises the way marketers deal with brands
• Strategic consistency
• Brand consistency
• Simplicity & relevance
• Customer centricity
• Build knowledge
• Focused team
• Continuity
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10. Agenda
-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand?
-How to build an efficient Brand architecture
-What about brand loyalty?
-How to create value for your brand
-The future of brands: some critical questions and insights
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11. What is a brand?
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12. A brand is not .....
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13. ... And not .....
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14. .... And not ....
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15. A brand is a world of experiences
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16. Question
Which elements define the brand Carrefour?
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17. The quality of goods
The personnel
The claim/promise
The logo
Tone of voice
The
pricing
The shops
.............
The communication:
folders, tv
commercials, emailing,
DM...
Nowadays, a brand has an
The shoppers
The instore
uncountable number of “brand
drivers” navigation
The promotions
The
evolution
The parking
The casiers
CSR/sustainabilitty policy
The private labels
The
loyalty
card
The caddies
The help desk
The assortment
The opening hours
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18. So, what is a brand?
 A promise between a company and its
customers …
 … of emotional and functional benefits around
products, services, image and experience in the
large sense
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19. Lovemarks put more focus on the emotional bonds
because these create “loyalty beyond reason”
(Saatchi & Saatchi philosophy )
“The essential difference
between emotion and reason
is that emotion leads to action
while reason leads to conclusions.”
Donald Calne, Neurologist
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20. Agenda
-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand ?
-How to build an efficient Brand architecture
-What about brand loyalty?
-How to create value for your brand
-The future of brands: some critical questions and insights
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21. Remark: Terminology might be confusing and complex:
simplify and align!
The brand mission
The brand
values/principles
The brand vision
The brand personality
The brand purpose
The brand equity
The brand
The brand promise or brand positioning
The brand story
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22. The brand is not a marketers responsiblity only....
But it is his responsibility
to make it through
and to keep the brand promise
towards his customers
• Ambler, 2000, Agile Marketing: A holistic view on marketing
“Marketing is what the whole company does, not just marketers. More organizations
have understood that brand leadership requires a strong alignment between the
promise of the brand and the delivery of the brand. To do this, every function needs
to be coordinated both by ensuring that marketing only makes promises that the
organization can keep, and that the organization then actually keeps the promises.
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23. What is the company strategy?
Michael Treacy & Fred Wiersema
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24. Come to a strong brand is an intense process with though
criteria, where multiple stakeholders have to be involved
Is it relevant?
Is it unique?
Brand Positioning
or Brand promise
Is it sustainable?
Fit with equity of today?
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25. Do we still need a USP?
YES, WE DO!
• Not necessary on product level: Service, Tone of
voice, Waranty, Emotional benefit, Brand involvement
• Fons Van Dijck/Herman Toch: functional benefit might work better for
knows and strong brands, emotional benefits for new brands
• Check competition!
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26. The process to come to a strong positioning is always
similar, but the methodology is quite different
« Innovative
Discovery »
Conventions
Mega-Trends
Value Engines
Core Competencies
Customer Insights
« Positioning
Building »
Divergence:
Generate new
Branding
Opportunities
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« Implementation
Roadmap »
Convergence:
Define your
positioning space…
« Idea Gen »
Determine
growth platforms
and next steps

27. Case: NIBC, an exisiting company new in Belgium
Dutch online saving bank
« Innovative
Discovery »
Desk research
Online consumer
Research
Belgian key insights
Competitive
analysis
« Positioning
Building »
« Idea Gen »
Workshop
“Admoods”
-Look at commercials
-Talk about benefits/
tone of voice/cornerStones
-Select top 3
-Agreement
THoM gathered
all insights and
bundled them in a
brand positioning
which was discussed
and agreed in the
board
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« Implementation
Roadmap »
Go to Market
Plan
Selection of
agency

28. Tempo Team: an existing brand in an international
environment
Interim provider
« Innovative
Discovery »
Belgian Interviews
International itv‟s
Collect “stories”
Int‟l workshop
Define different
Concepts
Destill int‟l positioning
concepts
Competitive
analysis
« Positioning
Building »
« Idea Gen »
Select relevant
Belgian concepts
Workshop including
Homework (incl brand
Associations to gather
insights,benefits...)
-Presentation of strong
brand cases
Reflect on TT & select
top 3 benefits &
Characteristics
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THoM gathered
all insights and
bundled them in a
brand positioning
which was discussed
and agreed in the
board
« Implementation
Roadmap »
Go to Market
Plan for specific
Target groups
Int‟l approval
(on going)

29. Remind the FACTS criteria
simplicity
relevance
consistency
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30. Simplicity requires “making choices”
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31. Relevance is key in the “new world”
A marketer has to ask himself the questions:
• What is the meaning of my company/brand for the customer?
• Does this make the life of my customer easier? Do I add value?
• How can I realize this in a differentiating way from the compeition?
Herman Toch, Transformeren om te overleven, 2012, customers ask following
questions before they choose you (and keep on chosing you)
1. Does the brand care about me?
2. Does the brand really tries to make things better for me?
3. Can I really trust your brand?
4. Does the brand try to make my world a better place?
5. Do I get a voice?
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32. Once defined the brand positioning, consistency is
essential
Consistency implies longer term thinking
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•
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Approved positionings (incl external partners)
Marketing initiatives has to support the positioning
Consistency in all media
Consistency in all distribution channels
Visual consistency
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33. Example of not being consistent
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2007: Choice, price, quality, ¼ heure d‟avance. En alles is mogelijk.
2008: Simplicity. Zo eenvoudig kan het leven zijn
2009: Price. Pouvoir d‟achat.
2010: Choice. Blij met je keuze.
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34. Question
Which to you are strong and consistent brands?
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35. Agenda
-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand?
-How to build an efficient Brand architecture
-What about brand loyalty?
-How to create value for your brand
-The future of brands: some critical questions and insights
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36. The existing models
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37. The brand architecture is linked to the heritage, the
evolution of the company and the company objectives
-Check how the company was founded
-Check what the objectives are
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Focus on specifiek target group
- All households?
- Sustainable house holds?
- Price sensitive house holds?
-Check the growth strategy (mergers...)
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F.i. The Volkswagen group
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38. For endorsed brands, the positioning of the mother brand is
key
Focus on hardware? Which category? Or focus on content?
Big loss of MS in televisions, gaming, ....
Recent evolution....focus on “entertainment”.....
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39. Does a single brand have its limits ?
How many line extensions can a brand support?
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40. Line extensions have to fit with the brand‟s positioning and
USP
Brand
Positioning & USP
Product
Product
Product
…
A product extension
borrows from the mother
brand and gives back
Product
extension
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41. In the beginning, there was … the Dove soap bar
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42. brand
Years later, the Dove brand has many extensions, all
communicating the Dove USP
Extensions
product
¼ hydrating cream
…
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43. Nivea went too far and removed the beauty range
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44. In a House of brands, every brand needs it‟s own
positioning and own USP
Company
Brand
Brand
Brand
…
Brand positioning
Brand positioning
Brand positioning
…
USP
USP
USP
…

45. In a House of brands, every brand needs it‟s own
positioning and own USP

46. In a House of brands, every brand needs it‟s own
positioning and own USP
Volkswagen Group

47. Agenda
-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand?
-How to build an efficient Brand architecture
-What about brand loyalty?
-How to create value for your brand
-The future of brands: some critical questions and insights
48

48. Question
To which brands are you loyal and why?
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49. 100% loyalty is out. Divided loyalty is in.
•Loyalty programs have become a commodity
•Forget the “old school” rules
•Focus on light users and penetration
“Your consumers are just
somebody else‟s
consumers
who occasionally buy
you”
Martin Hammer
#YMS2013
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50. The combination of a penetration and a loyalty strategy is
necessary and asks for a dual marketing approach
Combined strategy and approach
Penetration growth
&
Existing customers might
buy the brand more often
New customers might
buy the brand
Mass Marketing
Loyalty growth
&
Reach all the buyers,
including the occasional,
light buyers and non-buyers
Target Marketing
Reach all the heavy
users
Most effective campaigns aim at new AND existing customers.
A company is successful when it targets light users AND heavy users.
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51. Agenda
-Branding in the FACTS vision
-What is a brand?
-How to build a strong brand?
-How to build an efficient Brand architecture
-What about brand loyalty?
-How to create value for your brand?
-The future of brands: some critical questions and insights
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52. 68

53. Question
What is the brand value of the top 3 best global brands 2013?
(Apple, Google, Coca-Cola)
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54. There are many brand equity measuring
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1
Brand awareness
Customer satisfaction
(satisfaction looking backward)
- Perceived product performance
- Perceived service performance
- Perceived channel performance
- Perceived total customer experience
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Brand preference
3
Perceived quality
4
Perceived brand image/identity
(e.g. leadership, trust,
innovation, …)
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Recommendation
These drivers constitute a brand equity index, but their weights
are industry-specific and dynamic (changing customer patterns)
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Loyalty (satisfaction looking forward)
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55. Brand awareness
“Push to add drama”: viral marketing to create brand
awareness for .....
TV channel TNT
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56. Brand preference
Question
What do you do when Duracell batteries are
out of stock at Carrefour?
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57. Perceived quality
Perception is everything in the value creation of a brand
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58. Perceived brand identity
Louboutin has a high brand equity
Differentiation
Relevance
Knowledge
Esteem
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59. Customer satisfaction
Ryanair is committed to address its reputation for poor
customer service
DESCRIPTION
Ryanair will make interactions with
customers easier in the future:
• Booking tickets with a new
process
• Returning customers will be able
to complete bookings faster
• Contacting the firm more easily if
there are problems
This will be backed up by a new
digital marketing strategy: more
investments in new media
OBJECTIVES
• Shake off its reputation for poor
customer service
• Increase customer satisfaction
Source: MarketingWeek – Ryanair overhauls digital strategy to focus on mobile and social
media
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60. Recommendation
The Net Promotor Score measures attitudinal loyalty
Question
• Have you or would you ever recommend … to others?
• 10 point scale
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2
3
4
5
6
7
8
9
10
Responses
Detractors
Calculation
Neutral
# Promoters - # Detractors
# Respondents
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Promoters

61. Loyalty
low
Involvement
high
Loyalty is driven by two dimensions:
switching barriers and involvement
low
high
Switching barriers
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62. Loyalty
Keep the switching barrier high to prevent the customer
from changing brands
• Nespresso‟s coffee machine could only be filled
by Nespresso capsules, which were only
available online and in exclusive shops
• Consumers didn‟t have the choice and were
attached to the brand
BUT:
• Douwe Egberts duplicated the capsules, which
can also be used in the Nespresso machines and
are available in the supermarkets
• Nespresso‟s switching barriers decreased:
consumers can now easily switch between Nespresso and Douwe Egberts
• Nespresso will need to continue working on involvement
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63. The future of brands: some critical questions and insights
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64. Discussion?
Will brands continue to exits in FMCG?
Who is the brand owner? The customer or the company?
Which brands will survive?
What about sustainability?
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65. Join us at our Meet & Greet!
„Rodins‟, Oude Markt 24, Leuven
12/11/2012 – 19h00
Subscribe via:
www.thom.be/meet-greet
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