Introduction to Brand Equilibrium

An insight into a common threat for brands within highly competitive, yet well established, sectors

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The way of brands

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What is Equilibrium?

- A condition in which all acting influences are cancelled out by others.

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Equilibrium: An insight story for brands

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Equilibrium: An insight story for brands

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Equilibrium: An insight story for brands

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The Brand Equilibrium Insight

When all the brand competitors use the same objectives, tools and operation methods, the result is equilibrium.

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Equilibrium: An insight story for brands

Brand Positioning

Customer Service

Products

RetailEnvironment

Brand Equilibrium: When consumers can’t perceive or articulate a significant difference between competing brands

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Marketing : ‘Mature markets see rapidly replicated competitive actions, dulling difference or advantage’

Equilibrium demonstrated within the mobile network sector

Network Data Speed

Network Coverage TariffsHandsets Customer

Rewards

Hypothesis: Within 3-12 months, any temporary advantage is cancelled out by competitors replicating benefits

Core Operational Functions: ‘Hard to develop, but possible to replicate’

Customer Service

EEVodafone 3O2

Core competitors become stratified into a Corporate Oligarchy: ‘Gaining market share becomes rare’

80%+ of a market becomes controlled by the big 3-5 brands; e.g. banking, multi-channel TV, broadband, energy and mobile

Similar Brand Positioning

Homogenous Objectives

Traffic Light Failure Green KPI’s = no

change

Levers produce little change

Trap of Gravity Repeat same

again

Hypothesis: Within 3-12 months, any temporary advantage is cancelled out by competitors replicating benefits

Standard KPI’s match

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The solution

Brand Positioning

Customer Service

Products

RetailEnvironment

The solution is committing to a different path.

Defining a different ambitionfor your brand and using original insight, a uniquestrategy, innovativeproducts and by nottrying to match your Competitors or appeal to every consumer.

Having a brand convictionfor a different, distinctiveand sustainably better way.

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Breaking Brand Equilibrium

Advantage starts when a brand does things differently.

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Blog: http://www.brandtao.co.uk

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BrandTaoThe way of brands