Presentation on theme: "What Is Branding Anyway? ™ Why should we care? M. Richard Wadley."— Presentation transcript:
What Is Branding Anyway? ™ Why should we care? M. Richard Wadley
The Bayshore Group ™ Management & Marketing Consulting Focuses on helping small to medium sized organizations maximize growth opportunities through: StrategicMarketing/Branding Operational Assistance
Ironwood Advisory Group Helping small to mid-sized companies in “transition” or “crisis” Senior Consultants experienced in wide range of industries, company disciplines
A Brand What is it? Why is it important? How do you get one? How can you tell if you have one?
What does Branding mean? Branding in Market Place similar to Branding on the RANGE: Branding on the RANGE:Differentiate!
No longer simply name tags Became symbols of trust & reliability Trademarks
Separating products via trademarks worked for a long time - - until: Business matured, items became: Business matured, items became:InterchangeableHomogenousConsistent The era of commoditization: The era of commoditization: In that era today Choice often made solely on the basis of price
Brands developed during this age of abundance to: Create differences (At least in Perception)
Today: People overwhelmed by available choices Human attention is a major business currency Interest in, and loyalty to, brands that don’t “touch them” fall off the choice chart.
Branding-a natural part of human society: Humans instantly label others based on looks, reputation & behavior Our “perception” meter, helps us decide whom we trust First impressions are hard to shake
Today, this behavior phenomenon the driving force in influencing how: Potential customers Potential customers Clients Clients Decision makers Decision makers … choose between alternatives open to them. … form perceptions of a product, service, company etc.
Branding is simply about how to influence those perceptions. influence those perceptions.
A word of warning: You are already a brand - - good or bad If you don’t actively define your brand, your brand as it is now will define you!
Categories Changed By Branding: WATER Top of the charts on Commodity list Top of the charts on Commodity list In America water from tap is good and clean In America water from tap is good and clean No reason to buy bottled water No reason to buy bottled water But people do buy bottled water – lots of it. But people do buy bottled water – lots of it. More expensive per liter than beer or milk More expensive per liter than beer or milk
WATER Shows power of branding Companies capitalize on perception that municipal water tastes bad, isn’t pure. Companies capitalize on perception that municipal water tastes bad, isn’t pure. Their brand solves these issues & therefore is worth the price (Branding) Their brand solves these issues & therefore is worth the price (Branding) Now have filtered water, natural spring water, flavored water, water with minerals added, even “spiritual water”. Now have filtered water, natural spring water, flavored water, water with minerals added, even “spiritual water”.
COFFEE Virtual commodity for hundreds of years Coffee was largely just coffee –consumers not concerned about whose it was Most neighborhoods had a coffee shop What did they sell? Coffee Coffee Breakfast, lunch, dinner Breakfast, lunch, dinner Wide food menu Wide food menu
COFFEE Along came Howard Schultz Bought Starbucks – unique branding model – revolutionized the coffee market Bought Starbucks – unique branding model – revolutionized the coffee market Specialized in (of all things) coffee! Specialized in (of all things) coffee! Narrowed his focus to differentiate Narrowed his focus to differentiate Defined what they provide as not just coffee, but as a wonderful experience – a break! Defined what they provide as not just coffee, but as a wonderful experience – a break! “In the old days, you’d take your coffee to the office – now you take the office to Starbucks.” “In the old days, you’d take your coffee to the office – now you take the office to Starbucks.”
SANDWICHES Every town had delicatessens that served: Virtually everything: Virtually everything: All types of bread/rolls All types of bread/rolls Desserts-cookies, cakes, ice cream Desserts-cookies, cakes, ice cream Drinks-Coffee, tea, beer, soda Drinks-Coffee, tea, beer, soda Newspapers, cigarettes, even lottery tickets Newspapers, cigarettes, even lottery tickets
SANDWICHES Fred De Luca came along: Narrowed the focus to submarine sandwich Narrowed the focus to submarine sandwich Simplified operations – fewer items Simplified operations – fewer items 6th largest fast food chain in the US. Almost as many units as McDonalds 6th largest fast food chain in the US. Almost as many units as McDonalds
Visionary leaders take: Visionary leaders take: The common and abundant and make it uncommon and distinctive via Branding! The common and abundant and make it uncommon and distinctive via Branding! Whether products are actually better or not, in the mind of target customers they are different, better, and deserve loyalty Whether products are actually better or not, in the mind of target customers they are different, better, and deserve loyalty The same opportunity is wide open to you The same opportunity is wide open to you It’s all up to you. It’s all up to you.
Brands that listen to their own needs rather than to consumers A recipe for disaster Business world littered with the wreckage of branding failures Happens to companies of all sizes/types
C-2 Coke Goal: to capitalize on the “low-carb” craze Goal: to capitalize on the “low-carb” craze Half the carbs, half the calories; all the taste of regular Coke Half the carbs, half the calories; all the taste of regular Coke Biggest introduction since Diet Coke-$50 Million Biggest introduction since Diet Coke-$50 Million Targeted 20 – 40 year olds watching waistlines but wanting sugary blast Targeted 20 – 40 year olds watching waistlines but wanting sugary blast Priced at 15% premium to improve margins Priced at 15% premium to improve margins Envisioned mid-calorie,mid-carb soda section Envisioned mid-calorie,mid-carb soda section
C-2 Coke How’d it come out? C-2 was a bust. Why? Launched as low-carb craze was losing steam Launched as low-carb craze was losing steam The promise of a taste exactly like Coke Classic inaccurate – at least in perception The promise of a taste exactly like Coke Classic inaccurate – at least in perception Consumers-simply drink less of “the real thing” Premium pricing turned off customers Pepsi Edge, suffered the same fate.
Branding lessons learned: Hard to do branding right no matter your size or marketing experience Easy to miss the mark if you don’t follow branding principle-focus on customer perception of wants, not your own perception how things should be
Procter & Gamble Wants 60% market share in each category Achieved by several brands per category Each targeted to different but very specific consumer need / want Each targeted to different but very specific consumer need / want Hampered competitive attempts to attack P&G’s market share Hampered competitive attempts to attack P&G’s market share
P&G Laundry detergents: Worlds largest detergent – focus: good old everyday dirt – the kind kids get into focus: effective cleaning on all wash temperatures focus: contains color safe bleach for stains focus: contained color enhancers to brighten clothes All built on perception. All built on perception.
Starting out wrong but getting it right Hand dishwashing detergents Ivory Liquid and Joy #1 and #2; combined share 45% Ivory Liquid and Joy #1 and #2; combined share 45% Wanted third brand; boost share to 60% Wanted third brand; boost share to 60% Found a major unmet consumer need “Grease” Found a major unmet consumer need “Grease” P&G listened to themselves Internal perception-success required mildness to hands focus Internal perception-success required mildness to hands focus Ivory Liquid – so mild, you can have “younger looking hands” Palmolive Liquid – so mild you can soak your hands in it Dove – ¼ cup of moisturizing cream in every bottle Lux – Soft hands, soft skin
Procter & Gamble Spent 3 years trying to “shoehorn” grease removal benefit into a “mildness” looking product Failed in research testing – twice! Back to basics; let the product be what it was designed to do: “Solve the problem of grease!” Took out mildness stuff; walked a careful “grease removal” line Rocketed past 3rd place target to the #1 spot Been #1 for 30 years now Can you guess what product it is?
Branding Principle: Just because approach is “right” at the moment, doesn’t mean it will “stay right” Change is inevitable Constantly re-evaluate your position/market Be ready to change to stay relevant and successful.
Companies who lost Brand focus: Sears-pre-eminent leader for 100 years, lost to K-Mart ; who then lost to Wal-Mart Sears & K-Mart now lackluster-lost sight of what consumers wanted - failed to change Challenge-stay relevant, not just efficient Constantly update or become outdated!
Branding Principles Recap 1.Evaluate business strategy thoroughly – find areas of possible distinction 2.Determine best option to distinguish you from competition (the other sheep) 3.Being distinctive is all about building the “perception of being distinctive” 4.It’s perception in their minds-not yours!
Branding Principles Recap 5.Building a successful brand image is not easy - - requires hard work, persistence, clear focus 6.Developing a successful positioning is one thing - - keeping it fresh and relevant is another. Be aware of changing consumer needs / wants / trends / competitive activity 7.If you skip these steps, your current activities will define your brand – good or bad
Branding Principles Whether you are a naval captain, politician, running McDonalds, or Coca-Cola, or a service business, maximizing success, building a successful brand requires the same steps.
Building a successful Brand: Just like leaders of other companies, you need to ask yourself: 1.How can we create a genuine & successful brand? 2.What, in our situation would be an ideal strategy for our brand? 3.What kind of effort will it take, and will the payoff be worth it?
Building a successful Brand: Answering those questions encompass brand related issues: 1.What is truly distinctive about our product or service? 2.What perception is important – who are our customers? 3.What do we want them to think of us/ 4.How is the best way to achieve our desired perception? 5.How do we best inform them about who we are? 6.How do we get them to believe/trust our products and service?
Building Your Brand Who will share what they think their brand is? Is it distinctive? Is it relevant to target customers? I Is it timely and up to date? Etc.
Building a successful Brand: Asking/answering these questions put you on your way If you are willing to work to find the right focus/perception, you can maximize growth If it is too much work or you don’t want to do it, remember you are already a brand whether you like it or not - - so you’d better like what you are!
Building a successful Brand: Using the branding process is your call. As you decide, consider the words of Confucius centuries ago: “I hear and I forget. I see and I remember. I do and I understand.” “I hear and I forget. I see and I remember. I do and I understand.” I hope you choose “to do” and enjoy the benefit of successful branding.