building innovative brands · day 2 steps team 1-6 1 15 min overview 2 60 min start human-centered...

BUILDINGINNOVATIVE

BRANDS

welcome to day 2!

Dove Real Beauty Sketches

https://www.youtube.com/watch?v=litXW91UauE&feature=youtu.be

to share: bring inspiration board (photos, visuals and quotes from brand audit

create with purposeknow thyself

inspiration board gallery generating ideas, bringing them to life

Virgin AmericaLuanne Calvert, CMO

gathering relevant project information and inspiration. work on brand audit

JAN 25

TALK LABdive in!get acquainted with the course & one another.

start human-centeredbuild brand inside out

invite participationco-create experiences; collaborate to create value

spark storiescreate and invest in stories that build value as they grow

team presentations pitch your concept

d.thinkingreinventing the thank-you gift

field workobserving & interviewing stakeholders

iteratingevaluate & evolve your idea

storyboard sharingget feedback & hone your story

INNOVATORus

Blue BottleBryan Meehan, Chairman

SalesforceJohn Zissimos, Chief Creative Officer

UberLaura Jones, Product Marketing & Creative Strategy

DATE DUE

JAN 27

FEB 8

FEB 10

FEB 11

Syllabus

you

rough storyboard showcasing new experience

beta of your final project

to share:final project

team formation, book team meeting schedule

JAN 29

celebrategraduation + wine reception

Day 2 STEPS Team 1-6

1 15 min Overview

2 60 min Start Human-Centered and BB

15 min Cushion

3 60 min Stakeholder Interviews

4 45 min Team Lab and Wrap-up

Design thinking

Rethinking brand

Start human-centered

Focus on relationships and needs.

Listen actively.

Recover gracefully.

Build from inside out.

Build from inside out.

Focus on relationships and needs.

Listen actively.

Recover gracefully.

UNDERSTAND CLARIFY CONNECT IDENTITY ASSETS TOUCHPOINTS

Principles

Beliefs

Personality

Attributes

Vision

Philosophy

Story

Story

Messages

Promise

Symbols

Colors

Voice

Tone

Logos

Typography

Photography

Sound

Letterhead

Packaging

Website

Signage

Advertising

Spaces

Build inside out

EXPRESSDEFINE

Stanford Graduate School of Business

Starts with CEO, and then brand is built inside out.

And when employees are passionate about the brand and embody it, the offerings and customers will follow.

But how to build brands inside out?

Build inside out

brandattributes

brandpersonality

How?

Human characteristics associated with a brand

Product attributes associated with a brand

Even brands can be human-centered. Brands with personalities resonate with employees, ignite

feelings, and define relationships.

How to quantify?please rate the extent to which the following personality traits describe Apple.(1 = not at all, 5 = very much)

Down-to-earthExcitingCompetentSexyMasculine

Source: Aaker (1999, JMR)

BRANDPERSONALITY

ExcitementSincerity

Competence

Ruggedness

Sophistication

“Big Five” dimensions


Down to earthFamily OrientedSmall TownHonestSincereRealWholesomeOriginal CheerfulSentimentalFriendly

Sincerity


ExcitingTrendyDaringSpiritedCoolYoung ImaginativeUniqueUp to dateIndependentContemporary

Excitement


ReliableHard WorkingSecureIntelligentTechnicalCorporateSuccessfulLeaderConfident

Competence


Upper classGlamorousGood lookingCharmingFeminineSmooth

Sophistication


OutdoorsyMasculineWesternToughRugged

Ruggedness


BRANDPERSONALITY

ExcitementSincerity

Competence

Peacefulness

Sophistication

japan



ShyMild-manneredPeacefulNaïveDependentChildlike

Peacefulness


BRANDPERSONALITY

ExcitementSincerity

Passion

Peacefulness

Competence

spain


Source: Aaker, Benet-Martinez and Garolera (2001, JPSP)

FerventPassionateIntenseSpiritualMysticalBohemian

Passion

Source: Aaker, Benet-Martinez and Garolera (2001, JPSP)

AssociationsWhat are you?

AwarenessWho are you?

AttitudesWhat about you?

AttachmentWhat about you and me?

Point of Parity,Point of Difference

Deep, Broad, Brand Awareness

Strong, Favorable,Unique

Active Loyalty

CONSUMER QUESTIONS IDEAL OUTCOME

Source: Keller, Strategic Brand Management

Brand measures

JUDGMENTSQuality

CredibilityConsideration

Superiority

BRAND ATTRIBUTESQuality

ReliabilityDurability

Price

BRAND PERSONALITYUser ImageryUsage Imagery

RELATIONSHIPSLoyalty

AttachmentEngagement

FEELINGSWarmthFunRespectFear/excitementAwe/jealousy

AWARENESSCategory Identification Recall

and Recognition

Brand personality defines relationships

Re·la·tion·ship1: the state of being related or interrelated.2: Existent when future interaction with partner is expected.

I wouldn’t invite you to my party, you are not good enough

I can live withoutAmerican Express

Source: Blackston (1993)

We’ll be doing things my way.

I would like Microsoft out of my life.

Source: Blackston (1993)

In any relationship, one partner will eventually fail.

- A really smart person

“ ”

Sincerity

Source: Aaker, Fournier and Brasel (2004, JCR)

Excitement


survey 3survey 1 survey 2Transgression Recovery

interaction

Day 1

Study timeline


Day 60

1 2 32

4

6

SINCERE BRANDPERSONALITY

t

How relationships develop


1 2 32

4

6

SINCERE BRANDPERSONALITY

1 2 32

4

6

EXCITING BRANDPERSONALITY

t t

How relationships develop


SINCERE EXCITING

Deepening connectionsIntense, long-termHeightened expectations

Fading connectionsFling-likeExpectations = flexible, easygoing

Sincere vs. exciting


3

5

7

Absence of Transgression

3

5

7

Presence of Transgression

t t

Sincere

Exciting

post-transgression

post-recovery

Exciting

Sincere

When mistakes happen


In brand personality determine what in fact was a transgression and illuminate how to apologize and recover gracefully

SINCERE EXCITINGTransgression makes partner quality assumptions salient “I thought you knew and respected me”

Provides contrary evidence of those assumptions

Transgression makes relationship salient

Allows the establishment of partner quality“I didn’t expect this of you”

Rethinking transgressions

Source: Fournier 1998

✦ supervisor and employee

✦ professor and graduate student

✦ co-workers

✦ college classmates

✦ husband and wife✦ best friend

✦ close friends

✦ siblings

✦ teammates

✦ father

✦ compartmentalizedfriendships

✦ childhood buddies

✦ casual acquaintances

✦ master and servant

✦ personal enemies

✦ business rivals

✦mother

✦ second cousins

✦ psychotherapist & patient✦ business partners

✦ ex-husband, wife

✦ political opponents

✦ opposing negotiators✦ interviewer & job applicant

SOCIOEMOTIONAL REWARDS

UTILITARIAN & FUNCTIONAL

REWARDS

INTENSE& STRONG

SUPERFICIAL& WEAK

✦ salesperson and customer

✦ people you dislike

✦ salespeople and regular customer

✦ fiancée & fiancé

Relationship types

SOCIOEMOTIONAL REWARDS

UTILITARIAN & FUNCTIONAL REWARDS

INTENSE& STRONG

SUPERFICIAL& WEAK

✦ best friend

✦ teammates

✦ father

✦ casual acquaintances

✦ master and servant ✦ business rivals

✦ husband and wife

✦ close friends✦mother

✦ compartmentalizedfriendships

✦ childhood buddies

✦ business partners

• Harley Davidson

• Disney

• Levi’s• Johnson &• Johnson

• Apple

• Coca-Cola

• AT&T

•Hallmark

•Kodak

• Discover

• IBM

• Black & Decker

• Kellogg’s

• Budweiser• McDonald’s

• Jell-O

• Hershey’s• Crayola

• Charmin • Burger King• Maxwell

•House

• Marlboro

• Tylenol• GE

•Microsoft

• CNN• Avis

• Wall Street Journal

• Cablevision

• Frigidaire•Sheraton

•Cheer

• AMEX

• Facebook• Nike

Brand relationships

Source: Fournier 1998

Renegotiate Contract:Distancing

Renegotiate Contract:IntimacyTransgression

RelationshipMaintenance

RelationshipInitiation

Source: Fournier and Deighton 2003

How to recover gracefully

Apologize RespondListen

Renegotiate Contract:Distancing

Renegotiate Contract:IntimacyTransgression

RelationshipMaintenance

RelationshipInitiation

Source: Fournier and Deighton 2003

Mistakes don’t always hurt; it depends on how you recover

what is the personality of Blue Bottle?

what would be a transgression?

how might you apologize?

To recap…

Focus on relationships and needs. This is where true value resides.

Listen actively. Get to know your customers intimately. Speak less, listen more.

Recover gracefully. One misstep doesn’t mean it’s over. Relationships are often even stronger after navigating mistakes.

Build from inside out. When employees are passionate about the brand and embody it, the offerings and customers will follow.

Bryan MeehanBlue BottleExec Chair & Lead Innovator

David BowmanBlue BottleCFO

CONFIDENTIAL - DO NOT SHARE OR DISTRIBUTECONFIDENTIAL - DO NOT SHARE OR DISTRIBUTE

Blue Bottle CoffeeBuilding Innovative Brands | Jan 27, 2016


Building Innovative Brands | Jan 27, 2016

Blue Bottle Coffee today

147

4 geographies

3 lines of business

22 cafes

450 team members

1.5M pounds of coffee



Our leadership team

148

James FreemanFounder and CEO

Bryan MeehanExecutive Chairman

Fresh and Wild (Whole Foods)

Nude Skincare (LVMH)

David BowmanOperations and Finance

The Boston Consulting Group



149

In 2002, we began serving coffee at Farmers Markets in the Bay Area



150

And three years later, opened our first permanent cafe, a kiosk in San Francisco’s Hayes Valley



151

We’ve grown quite a lot since then, with operations now in the Bay Area, Los Angeles, New York City and Tokyo

Bay AreaFerry BuildingHayes Valley

HeathMarket Square

Mint PlazaPalo AltoSansomeWC Morse

Webster Street

Ferry Building San Francisco

New York CityBerry StreetBryant Park

ChelseaDean Street

Hell’s KitchenHigh Line

Rockefeller Center

Bryant Park New York City

Los AngelesAbbot KinneyArts District

Beverly GroveEcho Park

Abbot Kinney Los Angeles

TokyoAoyamaKiyosumi

Kiyosumi Tokyo



Three values continue to guide us…

152

Hospitality SustainabilityDeliciousness



…toward one simple purpose

153

James Freeman, 2002



Coffee is a massive global market

154

• Habitual, high-frequency

• 83% of Americans drink coffee

• Average of 3 cups per day

Note: Market sizes are estimates only; specialty coffee shops defined as businesses deriving 55% or more of total revenue from the sale of coffee, coffee beverages, and coffee accessoriesSource: Specialty Coffee Association of America (Dec 2014); USDA

~$50BUS coffee

$25B+US specialtyretail coffee

$200B+global coffee



155

Specialty coffee market growing rapidly

• 1 of every 2 coffee cups consumed

• Specialty coffee customers have nearly tripled to ~35% since 2003

• 70% increase in specialty coffee cafes since 2003 (to ~30K today)

Note: Growth rates and market statistics are estimates only; specialty coffee shops defined as businesses deriving 55% or more of total revenue from the sale of coffee, coffee beverages, and coffee accessories; specialty coffee drinkers defined as % of adults who consume specialty coffee dailySource: Specialty Coffee Association of America (Dec 2014); Wall Street Research

US coffee growth(overall)

US specialty coffeegrowth

~6%

~25%

4x



Starbucks transformed the industry over last 30 years

156

2014US specialty coffee

$17B+

$8B1

$25B+

1988 2004 2014

9,000

23,000

26

Market cap:

Starbucks stores (Global2)

$25B ~$88B

1 Represents Starbucks’ estimated CY 2014 Americas Beverage revenue2 Includes company-owned and licensed storesSource: FactSet and company filings



What we care about

157



What we care about

158



What we care about

159



What we care about

160



What we care about

161



What we care about

162



What we care about

163



A few amazing team members here today

164

Shawna SharieRetail Operations

Arion PayloRetail Design and Development

Neil DayDigital | Technologies

Alexandra ChanRetail | Northern California

Conner BurnsRetail | Palo Alto

Tim ShiDigital | Omnichannel



165



166

stakeholder interviews and team

lab

Fieldwork!

building innovative brands · day 2 steps team 1-6 1 15 min overview 2 60 min start human-centered...

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