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Balancing short-term sales growth with long-term brand success

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Presentation on theme: "Balancing short-term sales growth with long-term brand success"— Presentation transcript:

1 Balancing short-term sales growth with long-term brand success
Why Big Data can mean Big Danger

2 Analysis of 996 IPA cases over 30 years.
Covers 700 brands in 83 categories. Identifies the ingredients for effectiveness, over the short and long term. “Effectiveness” measured in hard business terms.

3 A few of the brands in the sample

4 To be updated this month: Analysis of 714 campaigns over 3 years
Examines the drivers of success over the very short to mid term Effectiveness measured in hard business terms

5 1. Dangerous times for brands

6 Two ways marketing can affect sales
Sales activation Targeted, rational Decays quickly Brand building Broad reach, emotional Decays slowly

7 Brand building drives long-term growth
Long term sales growth Sales activation Short term sales uplifts Short term effects dominate ~6 months Source: Binet & Field 2013

8 Different time-frames favour different strategies

9 Chasing volume is not enough

10 But price effects are long term

11 Brand building is key to lower price sensitivity

12 2. The danger is growing

13 New media are mostly activation-focussed

14 The best brand building channels are unfashionable

15 Also the biggest price effect channel

16 3. Avoiding danger

17 Brand + activation wins over all time-frames

18 Balance is important to effectiveness
The 60:40 rule Brand:Activation

19 Key drivers for brand building
Emotion Fame Reach

20 Key drivers for brand building
Emotion Fame Reach

21 Broad reach means bigger profits

22 Choose media with broad reach
Source: IPA Touchpoints 2014

23 Broad reach in Brazil… Source: Ibope Target Group Index

24 Key drivers for brand building
Emotion Fame Reach

25 Emotional campaigns build stronger brands

26 Emotional campaigns work harder

27 Emotions are more profitable

28 But emotions only win after 6 months

29 Key drivers for brand building
Emotion Fame Reach

30 What is “Fame”? Achieving fame means more than just increasing brand awareness. It means: Getting a brand and its marketing talked about - WOM/buzz Getting the campaign Shared Turning consumers into brand advocates, and thus… Giving the brand a sense of stature and authority beyond its actual size

31 Fame builds stronger brands

32 Fame drives efficiency and pricing

33 TV boosts fame

34 TV massively boosts efficiency

35 And TV is becoming more efficient

36 Big Data = Big Danger

37 Evian global

38 Evian global INSERT EVIAN ‘BABY ME’ TV SPOT HERE
PLEASE SET TO PLAY FULL SCREEN AUTOMATICALLY

39 Obrigado


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