brand leadership - 5 global cases from the best brands by dan pankraz
DESCRIPTION
5 Global Case studies showing how the best brands create leadership in their categories. A youth marketing slant with some examples of brands who have gotten it wrong....and then recoveredTRANSCRIPT
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YOUTH EXAMPLES1. Nike SB (skateboard)
Being authentic
2. Red Bull vs. the followers Creating culture
Leadership Successes
3. Levi's vs. Diesel Ignoring reality
4. Absolut vs. Grey Goose Resting on your laurels
5. Burger King vs. itself Getting back to the core
Leadership Stumbles
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LEADERSHIP SUCCESSSTORIES
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BEING AUTHENTICTapping into trendsetters
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INNOVATORS
EARLY A
DOPTERS
EARLY M
AJORITY
LATE M
AJORITY
LAGGARDS
BRANDCORE
To maintain its leadership, Nike realised it had to do
more than battle Adidas in the shops and on TV
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INNOVATORS
EARLY A
DOPTERS
EARLY
MAJORITY
LATE M
AJORITY
LAGGARDS
BRANDCORE
TREND-SETTING
VANGUARD
To get ahead of Adidas right from the starting line, Nike went into skating
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“The jocks who used to beat me up for skating wore Nikes. And now Nike wants in with skaters? Uh-uh. It’s not going to happen.”
-- Moish Brennan, skater, quoted in AdBusters
To break into the insular skate culture Nike had to make a meaningful, credible contribution
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Nike SB launched exclusively in hardcore skate-shops: skater-owned, skater-run
Signalling a real commitment to skate cultureAlso keeping the brand out of the hands of poseurs
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Top skaters were given signature lines to design
Made the brand credibleGave consumers a taste of what it’s like to be their heroes
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Generated buzzIncreased premium credentials
Other designs come from people like hipster artist Jeremy Fish and toymaker Kidrobot
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Kept the brand consistently fresh and ahead of the curveGenerated a sense of exclusivity
All designs are limited editions: they’ve produced 150 SB Dunk editions in 5 years, none in mass quantities
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Online community with over 200,000 active posts and hundreds of diehard fanatics
Rewarded passion with insider accessFed the flames
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When SB released an ultra-limited edition called the pigeon in 2005, sneakerheads actually rioted in their press to lay claim to a pair (which now go for $2000)
Status symbolsCult-like devotion
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A small brand with a big impact
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When the competition heats up, get a head start and go to the source of leadership: trendsetting culture
To make an authentic contribution to this culture: Do not steal, mimic, or bastardize the culture Do partner with credible people to create something
new Do not get greedy with volume – exclusivity is
everything Do reward the passionate few to keep them passionate
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CREATING CULTUREDON’T BORROW FROM IT
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Energy Premium Grown-up International Mysterious Bad for you in a
good way
Ingredients
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First, the big guys scrambled to get in on the game…
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Red Bull refused to follow suit, as it’s not as credible – and wouldn’t
create the distance they needed
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Clubs:Energy to party all night
Adventure (Felix Baumgartner Base jumper)
Energy to go hard
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Aspiring DJs are given an opportunity across continental and cultural boundaries to work with and learn from prominent music trendsetters
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Every year, Red Bull throws a 24 hour party to encourage a diverse range of creative types to share their energy.
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Why do people needenergy at clubs?To dance. Red Bullhas set up classesto teach street dancing.
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The only competition like it in the world:A test of real-life wings
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Really the only competition like it in the world.Do you have wings?
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Red Bull is committed to bringing fast, intense F1 racing to the States – but recognises that US audiences won’t pay attention until their country has a great driver. So Red Bull is creating that driver at their F1 school.
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The final sporting frontier in America? Soccer. And Red Bull now owns one of the best teams in the country.
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When the competition heats up, don’t fight them on the same turf – create your own turf: Contribute to the culture you live in “Walking the walk” to bring your comms promise to life Creating a clean space to own
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LEADERSHIP STUMBLES
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Levi’s once created its category and led youth culture
It still maintains thought leadership – but its market dominance has been smashed
Because the reality of the brand no longer matches what the brand communicates…
…While the competition’s reality and image are synched
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Levi’s invented jeans – and the meaning behind them
A pioneering brand for rebels & iconoclasts:The embodiment of effortless cool
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The same products that peaked in the 80s, aimed at the same (ageing) consumers
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Consumers don’t want to buy jeans – they want to buy a lifestyle that expresses who they are
But Levi’s portfolio is limited: 85% of its sales come from jeans
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How rebellious and cool is the experience of sorting through a giant mess at Sears or Bi-Lo?
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Levi’s was communicating like a leader,but it wasn’t behaving like a leader in the world
Bogan Dad jeansBogan Mum jeans
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Like Levi’s, Diesel has a strongly-defined brand
Unlike Levi’s, however, that brand is expressed and paid off at every touchpoint
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Work that captures the spirit of the brand:Cheeky rebellion
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Jeans with the same quirky, stylish touches as the ads that sell them
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Tops Outerwear Shoes Glasses Jewelry Watches Bags Even a hotel
Diesel’s not just a denim brand: It’s a lifestyle brand
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A brand that’s equally built on its hangtags and salesforce
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Style lab may be a tiny business, but it createsa steady stream of ideas and excitement
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Style lab may be a tiny business, but it createsa steady stream of ideas and excitement
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The Heidies digital campaign organically positionedthe brand as cutting edge
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Diesel’s leadershipin one area is
amplified by itsleadership in others
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Diesel’s through-the-line integrity has turnedlike-minded consumers into evangelists
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Ultimately, product really is king No matter how great your communications
Leadership must be maintained at every consumer touchpoint Leadership in one place can’t compensate for lapses
elsewhere Negative perceptions of your consumer can
erode a youth brand as surely as negative brand perceptions
A well-integrated product portfolio is often more powerful than the sum of its parts Because it creates a badgeable lifestyle
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Absolut took a moribund category and injected it with fresh life Taking the lead on all fronts, from product design to
communications It became part of pop culture – and then it
became ubiquitous and coasted And was ultimately overthrown by a competitive
set that learned from the leader and topped it
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The swill for alcoholicRussian peasants
The cocktail of choice for urban
sophisticates
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Harsh, nearly toxic Pure
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From the evil empireFrom the most
attractive countryin the world
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Cheap, foreign &old-fashioned
Premium, relevant &contemporary
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The usual spiritsclutter
Absolut Breakthrough
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Consumers collected the ads, made statements with them, and created their own
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It activatedlazily
The campaign became tired & expected
It failed to innovate first
First
Second
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Absolut was everywhere – and that meant it wasin places where it shouldn’t be, and in the hands
of consumers who shouldn’t have it
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One brand in particular rose to thechallenge: Grey Goose
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Instead, it attacked where Absolut was most vulnerable
Uninspired Creative work
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But the price difference made Grey Goose appear more premium
$35 $28
Spirits experts acknowledge that all vodkas taste the same
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In an image-driven category, who wouldn’t want to be seen drinking the best?
A premium vodka must taste better, right?
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No longer just top shelf,it was bottle service
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Musi
cFi
lm s
eri
esPublish
ing
Golf T
V
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25% volume growth year
on year between 06-
07
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Once lost, leadership can bevery difficult to regain
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Complacency can undermine a leader as surely as a failure Winning formulas are ultimately just that: formulaic
In fast moving categories, the leader has to move faster
A leader brand’s weaknesses in one area will be exploited by the competition
In image categories, ubiquity may drive short term sales, but it can be deadly in the long term Gatekeeping is vitally important
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Burger King is a classic rise & fall leadership story with the promise of redemption Its fall is an important cautionary tale And its return helps us understand how to stay on track
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Teen target Grilled burgers Custom made Cheeky attitude Food-focused experience
Family target Fried burgers Pre-made Kiddie attitude Fun-focused experience
Burger king McDonald’s
vs.
A successful #2 brand built on a compelling core
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An explosion that proved difficult to control:A cancer of success
1982: 3,500 franchisesFounded in 1954 1967: 247 franchises
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Source: Burger King Case study, warc, 2005
FocusFocusFocus
“The brand had become schizophrenic with its
targeting.”
“The brand lacked a consistent personality and
identity.”
“Npd had become filled with products that lacked
relevance to consumers.”
“The environment had become sterile and corporate, lacking any
humanity or sense of fun.”
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1.
2.
3.
2001
1.
2.
3.
2002
+2%
+11%
-21%
Source: BusinessWeek, warc
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Burger King could have tried to reinvent itself once more to fit with the times…
…Instead, however, the brand returned to its core
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“Superfans”: young men aged 18 – 34 who average 18% of customers but 49% of sales
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Unapologeticallybigger, juicier (and unhealthier) burgers
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An in-store overhaul to connect in all the details
“Everything from the restaurants' signs to the employee uniforms…. All those things are branded experiences, and are being reworked."
– Alex Bogusky
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“When McDonald's tries to get hip, they show us kids playing basketball on rollerblades. BK's stuff is just far more subversive – [which] its cynical consumers appreciate.”
-- Slate.Com
Work that’s not afraid to polarise inorder to engage with its target
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Burger king spoofs on youtube King character on myspace with 10,000+ friends Family guy poked fun at subservient chicken
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1000
1200
1400
1600
1800
2000
2200
2002 2003 2004 2005 2006
Rev (
mill
ion
s)
Source: warc
1.
2.
3.
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The cancer of success: a leader brand can lose its way during periods of rapid growth When it’s easy to lose sight of the core that sparked that
growth
A leader cannot be all things to all people: it must focus and sacrifice Play to your strengths; don’t try to be something you’re not
Every touchpoint matters Burger King’s ads wouldn’t matter if the in-store experience
hadn’t also been turned around