what a brand is

Jide | Alade

© 2016 www.jidealade.com

The Brand.Biggest asset on the

balance sheet.

Jide Alade www.jidealade.com [email protected] 2348023917646

Jide | Alade


“Branding is not Rocket Science”

- Prof Kevin Keller

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“Brand”The most misused terms in business… “Brand Identity”

“Rebrand”

“Positioning”

“Value Proposition”

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Our brand identity is red and blue

Our value proposition is the same as theirs

A product is the same thing as a brand

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“Brand?”So then, what is a

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For one, it is not a logo, trademark or a name.

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It is what is behind the logo…the promise…that is the

brand.

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Every brand is

either a product, service, cause or organisation

but not every product, service, cause or organisation is a brand.

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A Product satisfies a basic need. To make a phone call, you need a phone and a network.

However, whether you pick an iPhone 7 or Samsung S7, or choose Etisalat over MTN, has everything to do with the concept of a Brand.

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- Walter Landor

“Products are made in the factory, but brands are created in the mind.”

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Think of a brand as containing 2 parts…

Tangible + Intangible the

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The tangible part you can

taste, see, smell, touch or hear.

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It is the sleek design of a phone…

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the sweet scent of a perfume…

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or the awesome technology in a car.

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feelingBut the intangible part is all about

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“sentiment”

“belief”

“attitude”feeling =

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Millionsof purchase decisions are made daily based more on how we feel than on rational thought.

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“What you make people feel is just as important as what you make.”

- BMW

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Banking with First Bank makes you feel your money is secure.

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Visiting Disney with your family feels magical.

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Riding a Harley Davidson bike feels liberating.

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Strictly speaking,riding a Harley Davidson bike is no more ‘liberating’ than say, riding a Suzuki bike.

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your headWhat Harley Davidson has masterfully done is Position driving Harley bikes as ‘liberating’ in

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Brand position(ing) is how the brand is perceived by consumers in relation to competing alternatives.

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You think… you think Performance

you think Prestige

think Reliability

You think…

Think…

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“Positioning is not what you do to a product. Positioning is what you do to the mind of the prospect.”

- Al Ries & Jack Trout Positioning. The Battle for Your Mind

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If a product has the tangible part but no perceived intangible part, it’s pretty much a

Commodity to you

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How many times have you heard:

“All politicians are the same ”

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That’s because many people can’t perceive a difference between one politician and the other, making them a commodity.

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A commodity is a product so basic it cannot be physically differentiated from

a competing offering in the minds of consumers…

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ever paid a premium for a commodity… Nobody

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But a place can also be a brand…

“What Happens in Vegas, Stays in Vegas”

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or a person…

“I belong to everybody and I belong to nobody.”

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A brand is a product or service with perceived intangible attributes and differentiated

from a competing offering.

So, a formal definition…

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Value Proposition.A brand must offer consumers a

Which is a statement of the functional and emotional benefits they can expect from the brand.

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Emirates promises travellers excellent product quality, convenient hub and pampering.

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A Value Propositionwill normally offer benefits that are relevant, unique,

compelling and believable for the consumer.

That is why it is also sometimes referred to as the

‘reason to buy.’

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We form our impression of brands

Exposure Experience&

Through

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Exposure ExperienceBrands get into our heads through exposure to messages about the brand

And also through actual experiences with the brand

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So, that perception of high product quality…

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plus those nice ads…

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and the glowing PR article…

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to the cosy store…

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and the welcoming smiles…

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…they are all elements of what marketers call

Touchpoint(moment when brand comes in contact with the audience)

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and also layer up to form

Brand Associations(which is anything people link or associate with a brand in their minds.)

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Possible Macbook Brand Associations

InnovativeCoolCreative

FunVirus- free

AppleFriendly

CultPremium User friendly

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Possible Rolex Brand Associations

GoldMoneyed

Achievement

Distinguished

Golf

Swiss

Yatching

Trustworthy

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Strength

Possible Gulder Brand Associations

Reality TV

Adventure

‘The Ultimate’

NigerianMasculinity

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Brand associations aggregate in our minds to form

a Brand Image.

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The Brand Image of GT Bank that I have is a very innovative, customer-focused and sophisticated bank.

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Brand Identity vs Brand ImageBoth terms are used interchangeably but they don’t mean the same thing

“Brand Identity is a unique set of brand associations the brand strategist aspire to create or maintain.”

David Aaker - Building Strong Brands

“Brand Image is how the consumer actually see your brand.

Internal External

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IDENTITY IMAGE

How brand owners define what the brand is

How the consumer perceives the brand

Goal: Strive for as much overlap as possible

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When a company or brand

it should be more than changing the logo, corporate identity and style guide of the company or brand.

“rebrands”

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seeks to overcome a brand handicap e.g. weak positioning or brand image.

“Rebranding”

A “rebrand” that encompass both intrinsic and extrinsic change, e.g. new product formulation combined with new positioning, tend to be more successful.

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changing the logo and and style guide without innate brand or company change is…

Otherwise

giving a Toyota Corolla a Mercedes Benz logo and expecting it to handle like a Benz.

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Brand Equity

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Brand Equity saved Coke

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Few months later Coca Cola changed the formulation of Coke and launched the sweeter New Coke.

In 1985 Pepsi ran campaigns that showed consumers preferred the taste of Pepsi to Coke in a blind taste test.

Pepsi began to outsell Coke in supermarkets. Coke began to drastically lose share.

It killed the old Coke.

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America revolted.

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Retailers began hoarding ‘Old Coke creating a black market for it.

Clamour for ‘Old Coke.’ Over 40,000 calls and letters received at Coke HQ in Atlanta.

National negative press coverage.

Coke deliverymen ridiculed.

One of the numerous letters sent in to the Coke CEO asked for his autograph on the premise that the signature of ‘one of the dumbest executives in American business history’ will one day be worth some money.

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77 days later, Coke brought back ‘Old Coke’ under the name Coca-Cola ‘Classic

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It was breaking news all over America.

It was even announced on the floor of the US Senate.

News of the reversal was covered by all three television networks in the US.

"A meaningful moment in US history,” said Senator David Pryor.

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By the end of 1985, Coca-Cola Classic was outselling both New Coke and Pepsi.

Coke's sales increased at more than twice the rate of Pepsi’s.

New Coke subsequently died.

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When a brand enjoys high level of awareness and familiarity, and people hold very strong, positive and unique brand associations in their minds about the brand, marketing folks refer to this as

Brand Equity

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Reduces consumer anxiety and risk over a purchase.

A high Brand Equity…

Ensures a brand/company survive major missteps.

Ensures a company secures higher valuation in the case of a merger or acquisition.

.

.

.

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Line Extensionvs

Brand Extension

vs

Sub Brand

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Line Extension is leveraging the brand equity of an existing brand into a new customer segment, usually in the form of a new variant or flavour.

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Brand Extension is leveraging the brand equity of an existing brand into an entirely new product category.

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Sub Brand is when a brand spins off a new product under a different name to gain access to a customer segment the parent brand could not credibly enter.

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Toyota as a brand lacks the credibility to enter the luxury car

segment. So it created the Lexus brand to address the segment.

Lexus has no product or marketing linkage whatsoever to Toyota.

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Brand EssenceThe

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Every strong brand has one.

It is the fundamental nature and timeless spirit of the brand.

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Some also call it the…

“Brand Mantra,” “Basic Stance,” “Brand Promise,” “Core Identity” or

“Brand Ideal…”

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It is usually expressed in two to three words…

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“Authentic Athletic Performance”

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“The Ultimate Driving Machine”

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“Love, sleep, play.”

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“Rewarding Everyday Moments”

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“Inspiring Personal Progress”

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“Ladies & Gentlemen Serving Ladies & Gentlemen”

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The Brand Essence informs and guides

everything the brand does, and is the point of its differentiation.

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For Nike, the brand essence is about bringing innovation and inspiration

to the athlete in all of us.

Nike doesn’t sell sporting gear. It sells Inspiration

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For Johnnie Walker, it is about ambition, personal progress and success in the

face of challenges.

KEEP WALKING

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Some guiding principles for Brand Essence development

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1.It should clarify what is

unique about the brand.

(Remember, the whole point about a brand is differentiation)

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2.

It must be Single-Minded

“A brand becomes stronger when you narrow its focus.” ~Ries & Ries, The 22 Immutable Laws Of Branding

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3.It should be memorable “…it should be short, crisp and vivid in meaning.”

- Kevin Keller

“Caring Shared”

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4.It must be

meaningful to employees

“Ladies & Gentlemen Serving Ladies & Gentlemen is meaningful and relevant to employees in helping everyone aspire to excellent service delivery.

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5.It never changes.

Ever.

Marketing and brand strategies may change. A new CEO or CMO may have brain waves. But the brand essence never changes. Ever.

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6.Will it support Brand Extensions?

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Benefits of defining your Brand Essence

It defines the category of business for the brand and set boundaries. 1.

It prevents dissipation of internal energies on disparate projects.

It helps to focus the brand positioning over time.

Serves as a screener for new ideas.

Guides advertising, design and story telling.

2.

3.

4.

5.

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Brand LoyaltyThat’s the ROI of brand building

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That’s why people sleep outside an Apple Store to buy an iPhone…

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…and why bikers tattoo ‘Harley Davidson’ logos and bikes on their bodies.

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“On average, loyal customers are worth up to 10 times as much as their first purchase”*

*USA Data. 2016 CustomersThatStick

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Strong brands enjoy premium pricing and high margins but require commitment to a long-term strategy.

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You can’t change messages every year.

Consistency in brand message over time is key.

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BUILDING BRANDS

1. Pressure to Compete on Price

2. Proliferation of Competition

7. Pressure to invest Elsewhere

6. Bias Against Innovation

4. Complex Brand Strategies & Relationships

5. Bias Toward Changing Strategies

Why Building Strong Brands is Hard

3. Fragmenting Markets & Media

8. Short Term Pressures

© David Aaker Building Strong brands

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Jideis passionate about brands and marketing communications. He is available for classes, personal presentations brand and advertising consultancy.

*This presentation can be tailored for specific company requirement.

Jide Alade www.jidealade.com [email protected] 2348023917646

Jide | Alade


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what a brand is

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