brand strategy toolkit

BrandAmplitude, LLC All Rights Reserved 2007

Brand Strategy ToolkitEverything you need to define a brand in one place

1.10.07

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Overview

Only 53% of firms say they have a long-term brand strategy in place.(1)

While 80% of advertising and marketing professionals say they are strongly aware of their company's brand positioning, only one fourth of them "...can clearly articulate (their) company's brand position to... clients, customers or prospective clients.“ (2)

Strong brands never happen by accident. Yet many companies do not take a disciplined approach to brand planning and execution.

(1) Prophet, Best Practices Survey, 2002

(2) Louws Management Corporation Survey, 2007

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Purpose

The need for brand building is widely accepted. What is missing is a shared set of tools for creating and implementing an effective brand strategy.

This toolkit is designed to be a step-by-step template for marketers and marketing students who understand the importance and principles of branding, but need a common language to implement the process in their organization.

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Brand Strategy Defined

The purpose of a brand strategy is to provide a plan for the systematic development of a strong coherent brand in order to enhance revenue and profits. The strategy should be driven by the principles of differentiation and sustained consumer appeal.

““There is no tool better than the brand for uniting There is no tool better than the brand for uniting the forces and the stakeholders inside and around the forces and the stakeholders inside and around your company.”your company.”

Thomas Gad, 4-D Branding: Cracking the Corporate Code of the

Network Economy, 2001

““The role of brands has evolved; brands are now The role of brands has evolved; brands are now company DNA, the spark from which all corporate company DNA, the spark from which all corporate life grows.”life grows.”

Will Murray, Brand Storm: A Tale of Passion, Betrayal, and Revenge, 2001

““...ideally, the brand will make black and white decisions not ...ideally, the brand will make black and white decisions not just at the top of the house, but also all the way down the line.”just at the top of the house, but also all the way down the line.”

David F. D’Allesandro, Brand Warfare: 10 Rules for Building the Killer Brand, 2001

The brand strategy should influence the total operation of a business to ensure consistent brand behavior in the marketplace and consistent brand experiences for the customer.

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Brand Strategy and Marketing Strategy

Brand Strategy is separate from the 4P’s. It guides and inform decisions about every aspect of the marketing mix.

I. Corporate Objectives & Brand Portfolio

II. Marketing Objectives

III. Brand Strategy

Communications Strategy

Product and Pricing Strategy

Channel and Distribution Strategy

IV. Marketing Execution & Monitoring

Strategic Marketing Process

Brand Strategy is an integral part of the overall strategic marketing process. It helps to bridge the gap between business strategy and marketing strategy.

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Brand Strategy Process

Target & Insight

Brand Execution Brand Execution

Brand Elements

Competitive Assessment

Brand Inventory

Equity Pyramid

Positioning

Objectives & Metrics

Personality

CommunicationsStrategy

Brand Experience Map

Brand StrategyBrand Strategy

Brand AuditBrand Audit

CRM &Community

Building

Points of Parity and Difference

The process of creating a brand strategy begins with a brand audit and ends with a plan for executing the brand across all touch points. It can be generally thought of as having three stages..

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Brand Audit

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Target Matrix

Current Brand Users

Competitive Brand Users

Category non-users

Lapsed Users

Size/Profile

Decision Criteria or Motivators

Usage Behavior

Decision Process

Barriers/Concerns

Key Influences

Brand Importance

Role of price

Satisfaction

The purpose of the target matrix is to identify and evaluate alternative candidates for equity building in order to ensure the brand focuses on the customers and prospects that offer the greatest potential for increased revenue and profitability.

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Decision-Drivers

The purpose of laddering is to identify key emotional and rational decision-making variables and their relationship to key benefits and consumer values in order to identify the most relevant ideas to consumers.

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Target Insight

Where to Find Insights

The purpose of a target insight is to describe how a meaningful connection can be established between what the brand offers and the target’s explicit or implicit needs in order to help identify a relevant brand promise.

Trends

Motivations/”Sweet spots”

Decision-making process/criteria

Higher level benefits

Image/Identity gaps

New Segments

Unmet needs

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Insights Examples

Mastercard “Priceless” campaign• “What we found was that people buy things because of

how those things make them feel… So the idea is that the item allows you to get to some other place in your life that makes you feel good.”

National Youth Anti-Drug Program “Above the Influence” campaign• “We wanted to elevate the conversation to make it more

‘pro-me’ than anti-drug. We know teens are very sensitive to influences, positive and negative, from peers and the media. That’s why we positioned it so teens would see influence as the enemy and marijuana as one of the influences that gets in their way. It’s a way of empowering them so they can stand on their own at a key moment of choice – seeing that they could be above the influence.”

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Brand Inventory

Heritage/Historical Positionings (existing products)

Brand Identity logos, icons or symbols

Secondary associations

Gaps between identity and image

Organizational strengths

Brand Values/Vision

Product performance claims, proprietary technology/patents

Third-party ratings or endorsements

Where to Find Assets or Gaps

The purpose of the brand inventory is to identify existing or potential assets that can be leveraged or gaps that need to be addressed in order to build on or create sustainable points of differentiation.

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Points of Parity and Difference

Brand

Consumers

Competition

Our

PODs

Potential Brand Differences

POPs• Points of Parity (Category

Benefits)

Competitive Brand Differences

Their PODs

Wants and Needs

The purpose of a POD’s analysis is to identify what ideas from our brand and competitive brands are most meaningful and potentially differentiating.

The purpose of a POP’s analysis is to identify which category benefits are critical for establishing credibility.

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Brand Strategy

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Brand Pyramid

Resonance

Consumer Judgments

Consumer Feelings

Brand ImageryBrand Performance

Salience

The purpose of the brand equity pyramid is to outline the basic building blocks of a what the brand should stand for in order to guide the process of building brand equity. It is the basis for determining key elements of the brand strategy – brand vision, brand positioning, and brand personality and brand measurement.

IdentityIdentity

RelationshipRelationship

ResponseResponse

MeaningMeaning

Brand Equity Pyramid Brand Equity Pyramid The model was developed by Kevin Keller, professor of brand strategy at Dartmouth, based on his ‘Customer Based Brand Equity Model’ (CBBE). Keller is the author of two definitive texts on brand building. The pyramid is just one of 4-5 leading representations of the components of brand equity. Other models include Y&R’s Brand Asset Valuator, Millward Brown’s BrandDynamics model, etc. While each model has its adherents, upon closer scrutiny, they are all very similar in their content and purpose. Whichever is selected, what is important is that it provide a shared basis for understanding what is meant by ‘brand equity’ and how this construct applies to your brand.

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Brand Positioning

The purpose of brand positioning is to explain how the brand will create a sustainable competitive advantage in the minds of prospects & customers in order to win loyal customers and ensure revenue and profits.

For (Target), (Brand/Company) is the only/best (consumer frame of reference) that (statement of key benefit or guiding value),

because/by (reason to believe, key credibility point).

Evaluation Criteria: Brand Fit, Customer Relevance, Uniqueness, Sustainability, Credibility

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Positioning Building Blocks

SUPPORT

TAR

GE

TFR

AM

E O

F

RE

FER

EN

CE

BENEFIT

Category definition Need state or problem

Product quality or value Most Reputable Company Service or delivery difference

Homeowners/Business owners Adults 35+; HHI $50,000+ Aware of ------ Experiencing -----

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Positioning Examples

For women concerned about perspiration wetness, Secret is the one brand of antiperspirant that is strong enough for a man but gentle enough for a woman.

For adults concerned about oral hygiene, Listerine is the one brand of mouthwash that not only stops bad breath but also helps prevent gum disease.

For adult cold suffers, Nyquil is the one brand of cold remedy that effectively prevents cold symptoms at night so one can sleep.

For financially constrained college intenders, PNC is the only university in NW IN that provides both a prestigious, marketable degree and a more authentic, “real college” experience.

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Brand Personality

The purpose of brand personality is to ensure a brand behaves in a way that is consistent with its values in order to increase its appeal and create greater affinity with its target. Brand personality can also help to differentiate a brand’s imagery relative to competitors.

What Brand is:

What Brand is NOT:

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Brand Execution

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Brand Elements

Brand Name Brand Logos and Icons

• Colors• Symbols• Music/Earcons

Celebrities or Personalities Advertising slogans and jingles Brand Alliances/Secondary Associations

• Co-branding• Licensing• Sponsorship• Event Marketing• Celebrity Endorsement• Third-party Endorsements

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Integrated Communications Strategy

Current Beliefs

Current Actions

MessageDesired Belief

Desired Actions

The purpose of a communications strategy is to ensure all communications are unified around a compelling brand idea in order maximize the consistency and efficiency of brand building communications.

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IMC Strategy Example

Current ActionsBuy whichever sport drink is on sale

MessageGatorade is the only sports drink that is backed by years of research

Desired BeliefGatorade is better than other sports drinks

Desired ActionsBuy Gatorade even when other brands are on sale

Current BeliefsAll sport drinksare the same

Target: Moms with kids 8-17 who purchase sports drinks at supermarkets

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PostUsage

Pre-Purchase Experience

Usage Experience

Brand-CustomerRelationship

The purpose of the Brand Experience Touchpoint Cycle is to map the points of interaction that influence customer behavior and brand perceptions through the customer lifecycle in order to identify and optimize high-impact customer touchpoints.

Brand Experience

Brand Experience and Touch Point Cycle

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The smartest marketers have realized that it is possible for communities to be formed around brands and are helping nurture the process.

A whole new way to sell things that is beyond both mass marketing or narrowcast, one-to-one strategies. Requires “supporting”, “nurturing”, “listening” and “validating” the group that is participating in your brand.

Community Building

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For more information, contact:

Carol PhillipsBrandAmplitude, LLC

[email protected]

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