1. HOW TO BRIDGE THE DISTANCE BETWEEN BUSINESS STRATEGY AND DESIGN

2. A VISUAL PRESENTATION BY MARTY NEUMEIER

3. Produced by NEUTRON LLC in partnership with NEW RIDERS PUBLISHING and THE AMERICAN INSTITUTE OF GRAPHIC ARTS Copyright © 2003 Neutron LLC. For educational use only. No part of this presentation may be published, sold, or otherwise used for profit without the written permission of the author.

4. WHAT YOU’LL LEARN: 1 A modern definition of brand 2 The five disciplines of brand-building

5. READY?

6. LET ’S START BY DISPELLING SOME MYTHS.

7. FIRST A brand is not a logo.

9. SECOND A brand is not an identity.

11. FINALLY A brand is not a product.

13. So what exactly is a brand?

14. A BRAND IS A PERSON’S GUT FEELING ABOUT A PRODUCT, SERVICE, OR ORGANIZATION.

15. by individuals, not companies, markets, or publics. It’s a GUT FEELING because people are emotional, intuitive beings.

16. In other words…

17. IT ’S NOT WHAT YOU SAY IT IS.

18. IT’S WHAT THEY SAY IT IS.

19. WHY IS BRANDING SO HOT? 1 People have too many choices and too little time 2 Most offerings have similar quality and features 3 We tend to base our buying choices on trust

20. THERE ARE 1,349 CAMERAS ON THE MARKET. HOW DO YOU DECIDE WHICH ONE TO BUY?

21. TRUST

22. T=r+d TRUSTRELIABILITYDELIGHT Trust comes from meeting and beating customer expectations.

23. $Does a brand have a dollar value?

24. AND HOW.

25. THIS SELECTION FROM INTERBRAND ’S TOP 1 0 0 LIST SHOWS WHY BRANDS ARE WORTH PROTECTING : 2001% CHANGEBRAND VALUE BRANDBRAND VALUEBRAND VS.AS % OF NAME($MM )PREVIOUS YEAR MARKET CAP COCA -COLA68,945-5%61% MICROSOFT65,068-7%17% I BM52,752-1%27% FORD30,092-17%66% MERCEDES21,728+ 3 %48% HONDA14,638-4%33% BMW13,858+ 7 %62% KODAK10,801-9%82% GAP8,746-6%35% NIKE7,589-5%66% PEPSI6,214-6% 9% XEROX6,019 -38%93% APPLE5,464-17%66% STARBUCKS1,757+ 3 2 %21%

26. COKE ’S MARKET CAP, I NCLUDING BRAND VALUE : $120 BILLION WITHOUT THE BRAND, COKE’S GLASS WOULD BE HALF EMPTY. COKE ’S MARKET CAP, NOT INCLUDING BRAND VALUE : $50 BILLION

27. PREDICTION BRAND WILL BECOME THE MOST POWERFUL STRATEGIC TOOL SINCE THE SPREADSHEET.

28. PROBLEM In most companies, STRATEGY is separated from CREATIVITY by a wide gap.

29. On one side of the gapOn the other side are are STRATEGIC THINKERS CREATIVE THINKERS ANALYTICAL I NTUITIVE LOGICAL EMOTIONAL LINEAR SPATIAL NUMERICAL VISUAL VERBAL PHYSICAL

30. DOES THE LEFT BRAIN KNOW WHAT THE RIGHT BRAIN IS DOING ?

31. When both sides work together, you can build a charismatic brand.

32. A CHARISMATIC BRAND is any product, service, or organization for which people believe there’s no substitute.

33. QUIZ : Which of these brands are charismatic? AMAZONHITACHIOXO GOODGRIPS APPLEHOME DEPOTPEPSI -COLA BURGER KINGI KEAPRELL COLDWATER CREEKKMARTRCA DASANIKRISPY KREMEREEBOK DISNEYLEVI ’SRUBBERMAID DK BOOKSLONGS DRUGSSAFEWAY EVEREADYMACY ’SSAMSUNG FORDMINI COOPERSEARS GENERAL ELECTRICNEWSWEEKSOUTHWEST AIRLINES GOOGLENISSANUNITED ARTISTS HANESNORDSTROMVIRGIN

34. QUIZ : Which of these brands are charismatic? AMAZONHITACHIOXO GOODGRIPS APPLEHOME DEPOTPEPSI -COLA BURGER KINGI KEAPRELL COLDWATER CREEKKMARTRCA DASANIKRISPY KREMEREEBOK DISNEYLEVI ’SRUBBERMAID DK BOOKSLONGS DRUGSSAFEWAY EVEREADYMACY ’SSAMSUNG FORDMINI COOPERSEARS GENERAL ELECTRICNEWSWEEKSOUTHWEST AIRLINES GOOGLENISSANUNITED ARTISTS HANESNORDSTROMVIRGIN

35. Any brand can be charismatic.

36. EVEN YOURS.

37. But first, you have to master the FIVE DISCIPLINES OF BRAND-BUILDING.

38. DISCIPLINE 1 : DIFFERENTIATE

39. FACT: Our brains act as filters to protect us from too much information.

40. WE’RE HARDWIRED TO NOTICE ONLY WHAT ’S DIFFERENT.

41. SOLUTION: BE DIFFERENT.

42. FEATURESBENEFITSEXPERIENCEIDENTIFICATION “What it is”“What it does”“What you feel”“Who you are” 1900192519502000 Marketing today is about creating tribes.

43. DRIVING VOLKSWAGEN READING AMAZON COMPUTING DELL SPORTS NIKE COOKING WILLIAMS-SONOMA BANKING CITIBANK TRAVEL ORBITZ

44. ON SUNDAYS THEY WORSHIP HARLEY, GOD OF THE OPEN ROAD.

45. The three most important words in differentiating your brand:

46. 1 FOCUS

47. 2

48. 3

49. IS THIS HOW YOUR CUSTOMERS SEE YOU?

50. THE FOCUS TEST: 1 Who are you? 2 What do you do? 3 Why does it matter?

51. Unless you have compelling answers to these questions, you need more focus.

52. The most common reason for loss of focus is ILL-CONSIDERED BRAND EXTENSIONS.

53. EXAMPLE: FOCUSED PORSHE = SPORTS CARS UNFOCUSED PORSHE = SPORTS CARS + SUVS

54. BAD BRAND EXTENSIONS are those that chase short-term profits at the expense of long-term brand value. GOOD BRAND EXTENSIONS grow the value of a brand by reinforcing its focus.

55. EXAMPLE : THE GOOD GRIPS BRAND HAS GROWN STRONGER WITH EVERY BRAND EXTENSION.

56. DISCIPLINE 2 : COLLABORATE

57. LIKE BUILDING A CATHEDRAL, BUILDING A BRAND IS A COLLABORATIVE PROJECT.

58. It takes a village to build a brand.

59. FOR ORGANIZING BRAND COLLABORATION:

60. The ONE-STOP SHOP contains the resources S E R V I C E S A DV E R T I S I N G to develop and D I R E C T R E S P O N S E R E S E A R C H steward the brand. P O P D I S P L AY S E X H I B I T S P U B L I C I D E N T I T Y R E L AT I O N S S U P P L I E R S E V E N T S P R O D U C T D E S I G N P R O M O T I O N S P U B L I C AT I O N S B R A N D ST RAT E GY WE B D E S I G N N A M I N G PA C K A G I N G A N N U A L R E P O R T S C O M PA N Y

61. ONE-STOP SHOP SCORECARD Easy to manageLittle choice of teams Promise of consistencyLittle ownership of brand

62. The BRAND AGENCY P O P D I S P L AY S hires best-of-breed C R E AT I V E S E R V I C E S I D E N T I T Y firms to help develop R E S E A R C H D I R E C T R E S P O N S E and steward the brand. A DV E R T I S I N G A N N U A L R E P O R T S S U P P L I E R S E V E N T S B R A N D A G E N C Y P R O M O T I O N S N A M I N G B R A N D S T R AT E G Y PA C K A G I N G P U B L I C AT I O N S P R O D U C T WE B D E S I G N P U B L I C R E L AT I O N S E X H I B I T S C O M PA N Y

63. BRAND AGENCY SCORECARD Choice of teamsLittle ownership of brand Promise of consistency

64. The INTEGRATED MARKETING TEAM is managed internally with open CRE AT I V E collaboration among A DV E R T I S I N G S E RV I C E S R E S E A R C H D I R E C T best-of-breed specialists. R E S P O N S E A N N U A L I D E N T I T Y R E P O R T S E V E N T S P O P D I S P L AY S E X H I B I T S C O M PA N Y SUPPLIERS P U B L I C R E L AT I O N S P R O M O T I O N S WE B D E S I G N PA C K A G I N G B R A N D P U B L I C AT I O N S S T R AT E G Y N A M I N G P R O D U C T D E S I G N

65. INTEGRATED MARKETING TEAM SCORECARD Choice of teamsDifficult to manage Promise of consistency Ownership of brand

66. IN REALITY, COLLABORATIVE NETWORKS AREN’T THAT SIMPLE.

67. and that’s OK.

68. Collaborative networks are not new.

69. A successful model has existed for years.

71. Like building a cathedral, making a movie takes hundreds of collaborators.

72. Smoocher Boy KELLY MARIN Agent Sims TREVOR CARMICHAEL Agent Townsend JOHN T. LANDON Agent Kruzic SHARON BONDLY Dijon PAUL DERAIN Jean-Michel JACQUES SOUVERAIN Keynes MICHAEL BRAND Corelli STEVEN GOLDSTEIN Johnston TRENT LOCKART Billie JACKSON BARNES Guards JOSEPH AKIO TERENCE BRADLEY MO DERENI ROBERT UNDERHILL KEN SILVER Librarian HILARY PROPRIATO Field Officer MICHAEL O. KELL Bus Driver HECTOR ABONDAS Night Guard NORMAN BRIER Meter Maid STACY BRECKSTEIN First Detective JOE KALEY Second Detective BRIAN BELSEN Beat Cop ABRAHAM LENDER Parking Cop T. T. MCBRIDE Helicopter Pilot VAN DERICKE First Old Man JOHN R. CARLSON Second Old Man VICTOR AMOS Tax Collector SEAN O' KENNA Stunt Coordinator JEFFREY ROCKEN Assistant Stunt Coordinator DARREL TOM Stunt Doubles Carlos GEOFF WRIGHT MARK CONTADINA Mariana SUE SKENNIAN Ajax CHARLIE MARQUETTE Sgt. Santos VICTOR BANERAS Carter F. C. CAMERON Smoocher Boy TELLIE PANOPOULIS Agent Sims MARTIN AIRES Agent Townsend STEFAN C. KAISER Dijon BILL MOORE Stunts STEVE ADRIANBENJAMIN BARKELEYTONY BEAUJOLAIS BOB CARTER GORDON COLERIDGEIVAN DEVERSON MICKEY DISANTISJILLIAN DRUCKER JOE EVANS MIKE FLANAGANBILL GEORGEJULIA HARRISON GEOFF IPSWICH MICHAEL KANTERKENNETH KITTRIDGE BARRIE LAWRENCETERRY LEVINSONTED MARSTEN JACKIE MACDOUGAL GREG NEVILSONBOB OSBORNE JAMES PETRICKEPETE POLSON RAY TELSON MARY STAUFFACHERFREDDIE STEENCAB UPTON CORNELIA THERRIEN JEREMY TRICKETTPETER YOUNG RAUL VALERIARONALD DEAVER-WEBBROBERT G. RUNYAN Hong Kong Kung Fu Team YUAN Tiger CHU CHEN Dragon SEN

73. Manners and Modes Supervisor FRANCIE MAS Storyboard Artists CAREN THOMASON MIGUEL TRASERO FRANCES CHU PEDRO BOGANILLO Art Department Researcher NUALA CORIAN Art Department Coordinator TRACY COLLISTON Conceptual Designer SERGIO MOLO Graphics BENJAMIN HIRASUNA Illustrator STEPHANIE RAND Set Designers GERI DEMONDE STELLAN GRETZKE MADELINE BARR LANCE DUNSTABLE MARCO DIPAOLO DEN MCENERY Set Decorators LISA BARHAM DRU LEE MANNING CARRIE DUNE Script SupervisorMARIE BELLEAU Camera Operator PAUL POLITO Steadycam Operator ROCK HANDLER 1st Assistant Camera GORDON ALBRIGHT 2nd Assistant Camera CRIS MORTEN Still Photographer BARRIE M. HORST Sound RecordistJACOB TREIB Boom OperatorsHORACE STEIN THOM CARRABINE Video Operator ART KELLEHER LUCIANO PROPRIO Props DAVID BELL Property Master ZUZU MANHEIM KAREN CAROLUS J. D. WHEATLY Action Vehicle Coordinators WILLIAM TREVANT Gaffer STU JEFFERSON Best Boy JOSH KNIPPLE Rigged Gaffers COLIN FARRINGDON PETER STANISLOV KIT GOINES BENNIE JAMESON RICK DEMIS STANLEY FREY G. G. NEWMAN Key Grip DAVID WEINBERG Head Grip RICKY MONROE Dolly Grips WILLI STRASBURG STAN BENTON CHARLES CRIVORN NORM LOFGREN VIC DOLAN GIORGIO VIVATO Rigging GripTEL STEPHENOPOLIS Make-up Artists TRINI GONZALEZ MARCI STEIN BELINDA MCNAIR CARI DUNN MICHELLE TONAS ROBERTO BELLINI

74. Dig Composite Supv TIM CURRIE DONALD VERES Digital CompositorsDAVID HUSSEIN Background Artists FRANCESCA ROTI GREG STONE CGI Lead Animators WILL SUTTON INGE JOHANSSON CGI Animators DREW CRAIN URSULA BIERSCH VISUAL LOGIC, LLC VFX Supervisor JARED BAGMAN ProgrammerKAROL CONST System AdminRANDY HARDWICK Production AdminMAL GERICKE Production Aide CASS MONAHAN Producer PATRICE ARNEM Scene Graphics PEDRO CARILLO CGI Artist Coord SANDY PRIESTLY CGI Artists JOHN LANGORF BRENDA CALE CGI DesignerMARK THOMAS KYLE M. SULLIVAN Compositors PATRICK MAHONEY STAV PROMIDES MARGRIET BILL TANIA SHAUB BENNET JURIAN I/O SupervisorCHUCK TRALIK Assorted Visual Effects PENNY GARCIA Color Toner GRAYSON TRUE Negative Cutter SLIM DELGADO Titles Designed by BATOUTAHELL, INC Opticals by PACIFIC DREAMS, LLC Soundtrack Album on ARTISTIC RECORDS, INC. Microscopic Cinematography by JAY FLAMMER `The Producers Wish to Thank the Following NASA CITY OF NEW YORK THE MARITIME CENTER OF SYDNEY LOS ANGELES POLICE THE CITY OF BEND, OREGON SULTAN OF BRUNEI Filmed on Location in CAPE KENNEDY NEW YORK CITY SYDNEY, AUSTRALIA LOS ANGELES, CALIFORNIA BEND, OREGON Filmed with OMNIVISON Cameras and Lenses Color by COLORLAB, INC. Prints by VISTACHROME

75. IN THE 1990s, CREATIVE COLLABORATION SPREAD TO BRAND-BUILDING.

76. EXAMPLE: The Netscape brand was built on the Hollywood model.

79. WHY ?

80. Because the mathematics of collaboration is nothing less than MAGIC.

81. DISCIPLINE 3 : INNOVATE

82. Execution— not strategy—is where the rubber meets the road.

83. CREATIVITY IS WHAT GIVES BRANDS THEIR TRACTION IN THE MARKETPLACE.

84. Because creativity is right-brained, and strategy is left-brained.

85. V Z D Q CREATIVE THINKING

86. ABCD STRATEGIC THINKING

87. MANTRA FOR INNOVATORS : Zig when others zag.

88. I S BECAUSE “THEY NEVER DID THE SAME THING ONCE.”

89. QUESTION : How do you know when an idea is innovative?

90. ANSWER : WHEN IT SCARES THE HELL OUT OF EVERYBODY.

91. To begin with, the brand needs a stand-out name.

92. 1 DISTINCTIVENESS 2 BREVITY 3 APPROPRIATENESS 4 EASY SPELLING AND PRONUNCIATION 5 LIKABILITY 6 EXTENDABILITY 7 PROTECTABILITY

93. A GREAT NAME deserves GREAT GRAPHICS.

94. EWS LOGOS ARE DEAD. LONG LIVE ICONS AND AVATARS ! FLASH!

95. An ICON is a name and visual symbol that suggests a market position.

96. EXAMPLE : CBS. The network for “eye-popping” television.

97. An AVATAR is a brand icon that can move, change, and operate freely in various media.

98. EXAMPLE : CINGULAR : The “self-expression” cellular service.

99. For products that sell at retail, the package is often the best and last chance to make a sale.

100. The hardest-working packages follow a natural reading sequence. THE SHOPPER : Notices the package 1 2 Asks “What is it?” 3 Wonders “Why should I care?” 4 Wants to be persuaded 5 Needs proof

101. to match this sequence, a package can sell the product more effectively.

102. ONLINE, your website needs to follow a SIMILAR reading sequence, one that supplies users with ONLY the information they need, instead of trying to squeeze EVERYTHING onto the home page LIKE THIS and making your users do ALL the work, which will undoubtedly cause them to LEAVE, when all you really have to do is ask yourself this SIMPLE QUESTION :

103. Does our website look in this dress?

104. Too many websites are bloated with irrelevant information.

105. WHY ?

106. 1 TURFISMO (Every department wants to be on the home page)

107. 2 FEATURITIS (Inexperienced communicators believe more is better)

108. TECHNOPHOBIA 3 (Experienced communicators resist new media)

109. QUIZ : Which of these sites looks easier to use?

112. DISCIPLINE 4 : VALIDATE

113. VALIDATION means bringing the audience into the creative process.

114. S E N D E RM E S S A G ER E C E I V E R THE OLD COMMUNICATION MODEL WAS A MONOLOGUE.

115. S E N D E RM E S S A G ER E C E I V E R THE NEW COMMUNICATION MODEL IS A DIALOGUE.

116. QUESTION : How can you test your most creative ideas BEFORE they get to market?

117. HINT : Not with large quantitative studies or focus groups.

118. QUANTITATIVE STUDIES BURY THE PROBLEM IN HEAPS OF UNHELPFUL DATA.

119. FOCUS GROUPS WERE INVENTED TO FOCUS THE RESEARCH, NOT BE THE RESEARCH.

120. THE BEST TESTS ARE CHEAP, QUICK, AND DIRTY.

121. Better a rough answer to the right question than a detailed answer to the wrong question.

122. CHEAP -QUICK -DIRTY TEST 1 : The SWAP TEST is a proof for trademarks.

123. If the names and graphics of two trademarks are better when swapped, then neither is optimal.

124. EXISTING TRADEMARKS

125. WITH NAMES SWAPPED

126. CHEAP -QUICK -DIRTY TEST 2 : The HAND TEST is a proof for a distinctive voice.

127. If you can’t tell who’s talking when the trademark is covered, then the brand’s voice is not distinctive.

129. CHEAP -QUICK -DIRTY TEST 3 : The FIELD TEST is a proof for any concept that can be prototyped.

130. If your audience can’t verbalize your concept, you’ve failed to communicate it.

131. SHOPPERS CHARACTERIZED THE PACKAGE CONCEPT ON THE MIDDLE -RIGHT SHELF AS “A FASTER PENCIL.” BINGO.

132. Field tests measure five things: 1 DISTINCTIVENESS 2 RELEVANCE 3 MEMORABILITY 4 EXTENDABILITY 5 DEPTH OF MEANING

133. TESTING MIGHT HAVE SAVED SOME OF THESE COMPANIES FROM THE GREAT SWOOSH EPIDEMIC.

134. HAS THE GLOBE BECOME THE NEW SWOOSH?

135. DISCIPLINE 5 : CULTIVATE

136. Business is a process, not an entity.

137. A living brand is a pattern of behavior, not a stylistic veneer.

138. Brands are like people.

139. C.D.E. IF PEOPLE CAN CHANGE THEIR CLOTHES WITHOUT CHANGING THEIR CHARACTERS…

140. WHY CAN ’T BRANDS ?

141. OLD PARADIGM : Control the LOOK AND FEEL of a brand.

142. NEW PARADIGM : Influence the CHARACTER of a brand.

143. I F A BRAND LOOKS LIKE A DUCK AND SWIMS LIKE A DOG, PEOPLE WILL DISTRUST IT.

144. So let’s say you’ve COLLABORATED, INNOVATED, AND VALIDATED. DIFFERENTIATED,

145. + YOU ’VE ADDED THE LEFT BRAIN TO THE RIGHT BRAIN.

146. You’ve zigged when the competition has zagged.

147. + YOU ’VE USED TESTING TO BANISH THE FEAR OF STUPID.

148. Your brand is now NUMBER ONE in it’s category.

149. What’s your next move?

150. PASS OUT THE COMPASSES.

151. What’s a compass?

152. A continuing brand education program.

153. BRAND SEMINARS POSITIONING WORKSHOPS BRAND AUDITS STATEGY SUMMITS CREATIVE COUNCILS QUARTERLY CRITIQUES GROUP BRAINSTORMING TEAMWORK TRAINING I NNOVATION CLINICS DESIGN AUDITS BRAND MANUALS BRAND PUBLICATIONS

154. The more D I S T R I B U T E D a brand becomes, the stronger its management needs to be.

155. What your company needs is a CBO,C HIEF BRANDING OFFICER.

156. THE CBO FORMS A HUMAN BRIDGE BETWEEN LOGIC AND MAGIC, STRATEGY AND DESIGN.

157. C U LT I VAT I O N D I F F E R E N T I AT I O N C O L L A B O R AT I O N VA L I D AT I O N I N N O V AT I O N BY MASTERING THE FIVE DISCIPLINES OF BRANDING, THE COMPANY CREATES A VIRTUOUS CIRCLE.

158. WITH EVERY TURN AROUND THE CIRCLE, THE VALUE OF THE BRAND SPIRALS HIGHER.

159. YOU BUILD

160. A sustainable competitive advantage.

161. ABOUT THE AUTHOR Marty Neumeier is president of a San Francisco-based brand consultancy, Neutron LLC. Neutron supplies the “glue” that holds brands together: brand education programs, seminars, workshops, creative audits, process planning, and more. Visit www.neutronllc.com.

162. Need books for your branding team? Bulk discounts on the THE BRAND GAP are available for educational and corporate groups. Contact STEPHANIE.WALL@NEWRIDERS.COM.