All models and processes are owned by NPI, Inc. and cannot be reproduced without written consent from NPI, Inc. Benefit and Positioning, Branding, and Target Markets Workshop 2 E-Scholars Program 2014/2015

©2014 NPI, Inc., All rights reserved. Goals of Strategic Marketing Mini-Course  Produce a Strategic Marketing Framework for the creation of a business  Integrate all of elements of this Framework plus Competition and Customer Targets  Submit a Marketing Plan utilizing the Strategic Marketing Framework as part of the Business Plan

©2014 NPI, Inc., All rights reserved. Strategic Marketing Timeline ActivityDue Date Strategic Marketing Framework Category Definition, Product Platforms, Competition August 23 Customer Benefit, Branding, Target CustomersSeptember 6 Pillars and Communications September 20 Pricing, Channels, SalesForceOctober 4 Balance of Marketing Tactics ( plus a marketing research assignment) November 1 Revisiting Your Marketing Plan February 7

©2014 NPI, Inc., All rights reserved. Second Session: Benefit, Brand, and Target Customers  Discuss selected E-Scholar new Category Definitions, Product Platforms, and Competition from last session  Review structure of Benefit, Positioning, Brand and Target Customers  Complete a business Template for these elements  Brief open discussion

©2014 NPI, Inc., All rights reserved. Strategic Marketing Process for Entrepreneurial Development Definition of Business Benefit & Positioning Governance Alignment Pillars Balance of Tactics Balance of Tactics Communications Sales Pricing Communications Sales Pricing Evaluation Channels Evaluation Channels Business BusinessImplementation Benefit / Positioning Branding Target Markets PILLAR #2 PILLAR #3 PILLAR #1 Pillar Development Brand Architecture and Promise Brand Architecture and Promise Category Definition Product Platform Competition "This course contains models and processes that are the property of NPI. Please do not distribute these materials without written permission from NPI”

©2014 NPI, Inc., All rights reserved. Template #1: Strategic Marketing Elements: Category, Product Platform, and Competition Category Definition What is the category that your product will compete in? Describe it in detail but yet clear enough so business people and customers would understand. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ___________________________________________________________ How is this different than the category that exists today i.e have you redefined it in any manner? ________________________________________________________________ ________________________________________________________________ _____________________________________________________________

©2014 NPI, Inc., All rights reserved. Template #1: Strategic Marketing Elements: Category, Product Platform, and Competition What is your primary product? Describe how it works, sizing or any characteristics that precisely define what it does. _____________________________________________________________ _________________ What are other products that could be introduced as part of a Platform over a 3 year period of time? These cannot be flavor, or size changes, or web variations, etc. but truly unique products. _____________________________________________________________ _______________________

©2014 NPI, Inc., All rights reserved. Image Benefits “ Makes Me Feel Better ” “ Offers Me Variety ” “ Makes My Life Easier ” “ Saves Me Time ” “ Saves Me Money ” “ Better Quality ” Product Benefits To define the singular customer benefit that will drive all of activities of a business NPI Customer Benefit Model® Trusted, Smart, Long-Term Relationship, Offers advice Selection, Product alternatives Less complex, No hassle, Flexibility, Process efficiency Fastest, Removes steps Saves me money, Makes me money Most effective, Safe, Better features Positionings

©2014 NPI, Inc., All rights reserved. How companies define or do not define a singular benefit and positioning:  Benefit…this is a generic description of a benefit category to your customer and all internal employees (not used in communications with external people)  Positioning…this is the way to express the benefit selected e.g. Makes Me Feel Better could be the benefit category but you would say to your customer that “you will be provided advice” with this service or “it can be trusted when it is used”.  Cases to represent benefits and positionings follow:

©2014 NPI, Inc., All rights reserved.

Some Example Single Benefit Driven Websites    

©2014 NPI, Inc., All rights reserved. Case Histories: Benefit/Positioning for National Brands Consumer and B2B

©2014 NPI, Inc., All rights reserved. Benefit and Positioning TV Examples CATEGORYBENEFIT CATEGORY POSITIONING OR CUSTOMER RELEVANT EXPRESSION Hanes Starbucks Winfield Answer Plots Apple Geek Squad Harley Davidson Zappos

©2014 NPI, Inc., All rights reserved. Positioned as a comfortable apparel Start with a happy Michael Jordan and then add Cuba Gooding, Jr.

©2014 NPI, Inc., All rights reserved.

How they implemented it: Elevated the commodity product to an experience through variety of gourmet flavors (Latte, Macchiato, Mocha, Frappuccino, Blended Creams, Tea). Significant consumer participation while ordering (service) Engaged a younger target market not historically heavy users of the category. Leveraged the “product experience” to develop a new music distribution channel. Beans sold in grocery stores took significant share from canned coffee. Starbucks changed the benefit from staple commodity to a unique coffee experience.

©2014 NPI, Inc., All rights reserved.

WE ARE MORE THAN A MOTORCYCLE CLUB. We are your brothers and sisters. And we share your boundless passion for an American legend and the lifestyle it has created throughout the world. H.O.G. IS AN EXPERIENCE. Started in 1983, we are the largest factory-sponsored motorcycle club in the world with 900,000 proud members and more than 1,350 chapters worldwide. Our mission is to provide members with a means to "Ride and Have Fun." It's a simple concept that we take very seriously. We organize rallies and countless other riding activities just to satisfy your hunger for the road.

©2014 NPI, Inc., All rights reserved.  Harley Owners Group (H.O.G.) provides benefits that fuel your passion to ride. Member rallies Touring Handbooks Roadside assistance Safe rider training program Motorcycle shipping Special insurance program Fly and Ride®…fly to location and rent bike Travel center for planning trips Theft reward program “The Enthusiast” entertainment magazine Membership Pins/Patches

©2014 NPI, Inc., All rights reserved. Zappos.com was founded in 1999 with the goal of becoming the premiere destination for online shoes. Our unwavering focus on superior customer service has allowed us to expand our online offerings to include handbags, clothing and so much more! If you're looking for shoes, clothing and handbags online, compare us to other online shoe and online clothing stores, as well as online handbag stores. You'll find the absolute best service and the best selection in online shopping here at Zappos.com!

©2014 NPI, Inc., All rights reserved. Mini Course Template #2: Benefit and Positioning Benefit Definition (Select only one benefit category from six) _____________________________________________________________ Positioning/Customer Relevant Expression _____________________________________________________________ ____________________________________________________________

©2014 NPI, Inc., All rights reserved. Developing a Brand and Brand Architecture  Create brand name to reinforce the singular customer benefit, positioning, and the entire Platform/portfolio of products  Exposure of brand name is most frequent communication of the business idea  Compare competitive brands to make sure your brand is unique and distinctive

©2014 NPI, Inc., All rights reserved. Developing a Brand and Brand Architecture  Validate the Brand: research end customers, sales, distribution associates, internal employees and external “friends,” etc.  Define legal trademark availability  Use a Brand Architecture: An organization of how to use the brand in marketing Utilize “generic format” in the architecture Less expensive and simpler reinforcement of benefit needed in a start up

©2014 NPI, Inc., All rights reserved. NPI Megabrand Model ® : Recommended Generic Structure for New Enterprises Tylenol Platform Generic Architecture by: Form, Symptom, and Target Heritage Generic Endorsement Brand Acetaminophen Form Target Symptom Geltabs Caplets Infants Junior Strength Children’s

©2014 NPI, Inc., All rights reserved. ®2014 NPI, INC. All Rights Reserved NPI Megabrand Model® Hanes Generic Sub-Brand Endorsement Brand Heritage Generic Platform by: Target and Usage Men’s/Boy’s Underwear Men’s/Boy’s Casualwear Men’s/Boy’s Shoes Women’/Girls Casualwear Girls Underwear Women’s/Girl’s Shoes Baby Underwear Baby Sleepwear Baby blankets, towels, washcloths Sheets Comforters

©2014 NPI, Inc., All rights reserved. NPI Megabrand Model: expensive examples for a new brand Heritage Generic Sub-Brand Endorsement Brand Marriott Endorsement Architecture Instant Potatoes Shelf Stable Rice/Pasta Side Dishes Dinner Mixes Fruit Snack Heritage Generic Sub-Brand Endorsement Brand Betty Crocker Sub-brand Architecture

©2014 NPI, Inc., All rights reserved. Mini Course Template #2: Branding  Describe original name and new brand that reinforces the Benefit and Category of your business. _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________  Why do you feel that it is an appropriate brand? _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _________________________________________________

©2014 NPI, Inc., All rights reserved. Some Example E-Scholar Businesses What is the benefit or category associated with these?  Branding Missouri Truck Ferry, Barefoot Beach Bums or Tropifyme, Informed Health Solutions, Fulkerson Fabrication, Maker Village,Car View, Hostel KC, Spyneware, Sigma Sourcing, Mi Zocalo Mobile Platform, Global Disability Inclusion, Desserts and Pastries Factory, Principessa Bella

©2014 NPI, Inc., All rights reserved. Some Example E-Scholar Businesses What is the benefit or category associated with these? Targeting or category… Maker Village is a high tech DIY….is village high tech thus what is the benefit to these people.. MLE for DIY Car View…what is the primary customer and benefit to that person…dealer or customer Spyneware…what does it have to do with the category of business. Why are you branding each product…too expensive.

©2014 NPI, Inc., All rights reserved. Target Markets  Primary Target____________________________________ How does Benefit/Positioning Address this Target? _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ ________________________________________________________  Secondary Targets and Supporting Benefit /Positioning __________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ______________________________________________________________

©2014 NPI, Inc., All rights reserved. __________ is in the __________category The product Platform will be Primary Product plus, and. The major competitors are _____________, ____________, and ________ 37 “The End Game”….. a 3 year plan

©2014 NPI, Inc., All rights reserved. The general benefit description of ____________________ will have a positioning or customer benefit expression of___________ Target Customers will primarily be________ and secondarily be __________, The Brand will be. It will also use the_______ type of brand architecture 38 “The End Game”….. a 3 year plan

©2014 NPI, Inc., All rights reserved. To provide for continuity and consistency, there will be Pillars or governing foundations of: __________, ____________, and _________ Communication: The strategy for the communication will be ___________ The primary media used will be________ and __________ The tonality of these communications will be: ____________ Channels and Pricing Strategies will be__________ The method(s) of evaluation will be ____________ and ____________. 39 “The End Game”….. a 3 year plan