what is branding anyway? ™ why should we care? m. richard wadley

What Is Branding What Is Branding Anyway?Anyway? ™ ™

Why should we care?Why should we care?

M. Richard WadleyM. Richard Wadley

The Bayshore GroupThe Bayshore Group™™

Management & Marketing ConsultingManagement & Marketing Consulting

Focuses on helping small to medium sized Focuses on helping small to medium sized organizations maximize growth organizations maximize growth opportunities through:opportunities through:

StrategicStrategicMarketing/BrandingMarketing/BrandingOperational AssistanceOperational Assistance

Ironwood Advisory GroupIronwood Advisory Group

Helping small to mid-sized companies in Helping small to mid-sized companies in “transition” or “crisis”“transition” or “crisis”

Senior Consultants experienced in wide Senior Consultants experienced in wide range of industries, company disciplinesrange of industries, company disciplines

A BrandA Brand

What is it?What is it?

Why is it important?Why is it important?

How do you get one?How do you get one?

How can you tell if you have one?How can you tell if you have one?

What does Branding mean?What does Branding mean?

Branding in Market Place similar toBranding in Market Place similar to

Branding on the RANGE:Branding on the RANGE:

Differentiate!Differentiate!

Differentiate!Differentiate!

Objective of BrandingObjective of Branding

Create in the mind of the prospect theCreate in the mind of the prospect the

PERCEPTIONPERCEPTION

that there’s no other product or servicethat there’s no other product or service

quite like this Branded One!quite like this Branded One!

Why do we want to do that?Why do we want to do that?

Abundance of choicesAbundance of choices

Being distinctive is the way potential users Being distinctive is the way potential users will decide whom to do business with will decide whom to do business with

When you build a brand you:When you build a brand you:

Create a better perception in the Create a better perception in the mind.mind.

A Brand lives or dies:A Brand lives or dies:

Not in the mind of the CompanyNot in the mind of the Company

Not in the mind of the CEONot in the mind of the CEO

But in the mind of the prospects!But in the mind of the prospects!

Branding Isn’t:Branding Isn’t:

Just a logo/catchy sloganJust a logo/catchy slogan

A little AdvertisingA little Advertising

Having attractive stationery or letterheadHaving attractive stationery or letterhead

Branding applies as much to your Branding applies as much to your ability to achieve maximum ability to achieve maximum

success as it does to:success as it does to:

CokeCoke

McDonaldsMcDonalds

History of Branding History of Branding

In the beginning of mankind:In the beginning of mankind:

Products were pretty much the Products were pretty much the samesame

Trade kept in familyTrade kept in family

Choice was easyChoice was easy

BulaBula

JobithJobith

Early TrademarksEarly Trademarks

No longer simply name tagsNo longer simply name tags

Became symbols of Became symbols of trusttrust & & reliabilityreliability

TrademarksTrademarks

Separating products via trademarks Separating products via trademarks worked for a long time - - until:worked for a long time - - until:

Business matured, items became:Business matured, items became:InterchangeableInterchangeable

HomogenousHomogenous

ConsistentConsistent

The era of commoditization:The era of commoditization:In that era todayIn that era today

Choice often made solely on the basis of priceChoice often made solely on the basis of price

Brands developed during this Brands developed during this age of abundance to:age of abundance to:

Create differencesCreate differences

(At least in Perception)(At least in Perception)

Today:Today:

People overwhelmed by available choicesPeople overwhelmed by available choices

Human attention is a major business Human attention is a major business currencycurrency

Interest in, and loyalty to, brands that don’t Interest in, and loyalty to, brands that don’t “touch them” fall off the choice chart.“touch them” fall off the choice chart.

Branding-a natural part of human Branding-a natural part of human society:society:

Humans instantly label others based on Humans instantly label others based on looks, reputation & behaviorlooks, reputation & behavior

Our “perception” meter, helps us decide Our “perception” meter, helps us decide whom we trustwhom we trust

First impressions are hard to shakeFirst impressions are hard to shake

Today, this behavior phenomenon Today, this behavior phenomenon the driving force in influencing how:the driving force in influencing how:

Potential customersPotential customers ClientsClients Decision makersDecision makers

… … choose between alternatives open to them.choose between alternatives open to them.

… … form perceptions of a product, service, form perceptions of a product, service, company etc.company etc.

BrandingBrandingis simply about how to is simply about how to

influence those perceptions.influence those perceptions.

A word of A word of warningwarning::

You are already a brand - - good or badYou are already a brand - - good or bad

If you don’t actively define your brand, your If you don’t actively define your brand, your brand as it is now will define you!brand as it is now will define you!

Categories Changed By Branding:Categories Changed By Branding:WATERWATER

Top of the charts on Commodity listTop of the charts on Commodity list

In America water from tap is good and cleanIn America water from tap is good and clean

No reason to buy bottled waterNo reason to buy bottled water

But people do buy bottled water – lots of it.But people do buy bottled water – lots of it.

More expensive per liter than beer or milkMore expensive per liter than beer or milk

WATERWATER

WATERWATER

Shows power of brandingShows power of branding Companies capitalize on perception that Companies capitalize on perception that

municipal water tastes bad, isn’t pure.municipal water tastes bad, isn’t pure.

Their brand solves these issues & therefore is Their brand solves these issues & therefore is worth the price (Branding)worth the price (Branding)

Now have filtered water, natural spring water, Now have filtered water, natural spring water, flavored water, water with minerals added, flavored water, water with minerals added, even “spiritual water”.even “spiritual water”.

COFFEECOFFEE

COFFEECOFFEE

Virtual commodity for hundreds of yearsVirtual commodity for hundreds of years

Coffee was largely just coffee –consumers not Coffee was largely just coffee –consumers not concerned about whose it wasconcerned about whose it was

Most neighborhoods had a coffee shopMost neighborhoods had a coffee shop

What did they sell?What did they sell?

CoffeeCoffee Breakfast, lunch, dinnerBreakfast, lunch, dinner Wide food menuWide food menu

COFFEECOFFEEAlong came Howard SchultzAlong came Howard Schultz

Bought Starbucks – unique branding model – Bought Starbucks – unique branding model – revolutionized the coffee marketrevolutionized the coffee market

Specialized in (of all things) coffee!Specialized in (of all things) coffee!

Narrowed his focus to differentiateNarrowed his focus to differentiate

Defined what they provide as not just coffee, but as a Defined what they provide as not just coffee, but as a wonderful experience – a break!wonderful experience – a break!

““In the old days, you’d take your coffee to the office – In the old days, you’d take your coffee to the office – now you take the office to Starbucks.”now you take the office to Starbucks.”

COFFEECOFFEE

SANDWICHESSANDWICHESEvery town had delicatessens that served:Every town had delicatessens that served:

Virtually everything:Virtually everything:

All types of bread/rollsAll types of bread/rolls

Desserts-cookies, cakes, ice creamDesserts-cookies, cakes, ice cream

Drinks-Coffee, tea, beer, sodaDrinks-Coffee, tea, beer, soda

Newspapers, cigarettes, even lottery ticketsNewspapers, cigarettes, even lottery tickets

SANDWICHESSANDWICHES

Fred De Luca came along:Fred De Luca came along:

Narrowed the focus to submarine sandwichNarrowed the focus to submarine sandwich

Simplified operations – fewer itemsSimplified operations – fewer items

6th largest fast food chain in the US. Almost 6th largest fast food chain in the US. Almost as many units as McDonaldsas many units as McDonalds

SandwichesSandwiches

Visionary leaders take:Visionary leaders take: The common and abundant and make itThe common and abundant and make it

uncommon and distinctive via Branding!uncommon and distinctive via Branding!

Whether products are actually better or not, in Whether products are actually better or not, in the mind of target customers they are the mind of target customers they are different, better, and deserve loyaltydifferent, better, and deserve loyalty

The same opportunity is wide open to youThe same opportunity is wide open to you

It’s all up to you.It’s all up to you.

Brands that listen to their own Brands that listen to their own needs rather than to consumersneeds rather than to consumers

A recipe for disasterA recipe for disaster

Business world littered with the wreckage Business world littered with the wreckage of branding failuresof branding failures

Happens to companies of all sizes/types Happens to companies of all sizes/types

C-2 CokeC-2 Coke Goal: to capitalize on the “low-carb” crazeGoal: to capitalize on the “low-carb” craze

Half the carbs, half the calories; all the taste of Half the carbs, half the calories; all the taste of regular Cokeregular Coke

Biggest introduction since Diet Coke-$50 MillionBiggest introduction since Diet Coke-$50 Million

Targeted 20 – 40 year olds watching waistlines but Targeted 20 – 40 year olds watching waistlines but wanting sugary blastwanting sugary blast

Priced at 15% premium to improve marginsPriced at 15% premium to improve margins

Envisioned mid-calorie,mid-carb soda section Envisioned mid-calorie,mid-carb soda section

C-2 CokeC-2 CokeHow’d it come out?How’d it come out?

C-2 was a bust. C-2 was a bust. Why? Why?

Launched as low-carb craze was losing steamLaunched as low-carb craze was losing steam

The promise of a taste exactly like Coke Classic The promise of a taste exactly like Coke Classic inaccurate – at least in perceptioninaccurate – at least in perception

Consumers-simply drink less of “the real thing”Consumers-simply drink less of “the real thing”

Premium pricing turned off customers Premium pricing turned off customers

Pepsi Edge, suffered the same fate.Pepsi Edge, suffered the same fate.

Branding lessons learned:Branding lessons learned:

Hard to do branding right no matter Hard to do branding right no matter your size or marketing experience your size or marketing experience

Easy to miss the mark if you don’t Easy to miss the mark if you don’t follow branding principle-focus on follow branding principle-focus on customer perception of wants, not your customer perception of wants, not your own perception how things should beown perception how things should be

Procter & GambleProcter & Gamble

Wants 60% market share in each categoryWants 60% market share in each category

Achieved by several brands per categoryAchieved by several brands per category

Each targeted to different but very specific Each targeted to different but very specific consumer need / wantconsumer need / want

Hampered competitive attempts to attack Hampered competitive attempts to attack P&G’s market shareP&G’s market share

P&G Laundry detergents:P&G Laundry detergents:

Worlds largest detergent – focus: good old everyday dirt – the kind kids get into

focus: effective cleaning on all wash temperatures

focus: contains color safe bleach for stains

focus: contained color enhancers to brighten clothes

All built on perception.All built on perception.

StartingStarting out out wrongwrong but getting it right but getting it rightHand dishwashing detergentsHand dishwashing detergents

Ivory Liquid and Joy #1 and #2; combined share 45%Ivory Liquid and Joy #1 and #2; combined share 45% Wanted third brand; boost share to 60%Wanted third brand; boost share to 60%

Found a major unmet consumer need “Grease”Found a major unmet consumer need “Grease”

P&G listened to themselvesP&G listened to themselves Internal perception-success required mildness to hands focusInternal perception-success required mildness to hands focus

Ivory Liquid – so mild, you can have “younger looking hands”Ivory Liquid – so mild, you can have “younger looking hands”

Palmolive Liquid – so mild you can soak your hands in itPalmolive Liquid – so mild you can soak your hands in it

Dove – ¼ cup of moisturizing cream in every bottleDove – ¼ cup of moisturizing cream in every bottle

Lux – Soft hands, soft skinLux – Soft hands, soft skin


Spent 3 years trying to “shoehorn” grease removal benefit into a Spent 3 years trying to “shoehorn” grease removal benefit into a “mildness” looking product“mildness” looking product

Failed in research testing – twice!Failed in research testing – twice!

Back to basics; let the product be what it was designed to do: “Solve Back to basics; let the product be what it was designed to do: “Solve the problem of grease!”the problem of grease!”

Took out mildness stuff; walked a careful “grease removal” lineTook out mildness stuff; walked a careful “grease removal” line

Rocketed past 3rd place target to the #1 spotRocketed past 3rd place target to the #1 spot

Been #1 for 30 years nowBeen #1 for 30 years now

Can you guess what product it is?Can you guess what product it is?

Branding Principle:Branding Principle:

Just because approach is “right” at the moment, Just because approach is “right” at the moment, doesn’t mean it will “stay right”doesn’t mean it will “stay right”

Change is inevitableChange is inevitable

Constantly re-evaluate your position/marketConstantly re-evaluate your position/market

Be ready to change to stay relevant and Be ready to change to stay relevant and successful.successful.

Companies who lost Brand focus:Companies who lost Brand focus:

Sears-pre-eminent leader for 100 years, lost to Sears-pre-eminent leader for 100 years, lost to K-MartK-Mart; who then lost to ; who then lost to Wal-MartWal-Mart

Sears & K-Mart now lackluster-lost sight of what Sears & K-Mart now lackluster-lost sight of what consumers wanted - failed to changeconsumers wanted - failed to change

Challenge-stay relevant, not just efficientChallenge-stay relevant, not just efficient

Constantly update or become outdated!Constantly update or become outdated!

Branding Principles RecapBranding Principles Recap

1.1. Evaluate business strategy thoroughly – Evaluate business strategy thoroughly – find areas of possible distinctionfind areas of possible distinction

2.2. Determine best option to distinguish you Determine best option to distinguish you from competition (the other sheep)from competition (the other sheep)

3.3. Being distinctive is all about building the Being distinctive is all about building the “perception of being distinctive”“perception of being distinctive”

4.4. It’s perception in their minds-not yours!It’s perception in their minds-not yours!

Branding Principles RecapBranding Principles Recap

5.5. Building a successful brand image is not easy - Building a successful brand image is not easy - - requires hard work, persistence, clear focus - requires hard work, persistence, clear focus

6.6. Developing a successful positioning is one Developing a successful positioning is one thing - - keeping it fresh and relevant is thing - - keeping it fresh and relevant is another. Be aware of changing consumer another. Be aware of changing consumer needs / wants / trends / competitive activity needs / wants / trends / competitive activity

7.7. If you skip these steps, your current activities If you skip these steps, your current activities will define your brand – good or badwill define your brand – good or bad

Branding PrinciplesBranding Principles

Whether you are a naval captain, politician, Whether you are a naval captain, politician, running McDonalds, or Coca-Cola, or a running McDonalds, or Coca-Cola, or a service business, maximizing success, service business, maximizing success, building a successful brand requires the building a successful brand requires the same steps.same steps.

Building a successful Brand:Building a successful Brand:

Just like leaders of other companies, you Just like leaders of other companies, you need to ask yourself:need to ask yourself:

1.1. How can we create a genuine & How can we create a genuine & successful brand?successful brand?

2.2. What, in our situation would be an ideal What, in our situation would be an ideal strategy for our brand?strategy for our brand?

3.3. What kind of effort will it take, and will the What kind of effort will it take, and will the payoff be worth it?payoff be worth it?


Answering those questions encompass brand related Answering those questions encompass brand related issues:issues:

1.1. What is truly distinctive about our product or service?What is truly distinctive about our product or service?2.2. What perception is important – who are our customers?What perception is important – who are our customers?3.3. What do we want them to think of us/What do we want them to think of us/4.4. How is the best way to achieve our desired perception?How is the best way to achieve our desired perception?5.5. How do we best inform them about who we are?How do we best inform them about who we are?6.6. How do we get them to believe/trust our products and How do we get them to believe/trust our products and

service?service?

Building Your BrandBuilding Your Brand

Who will share what they think their brand is?Who will share what they think their brand is?

Is it distinctive?Is it distinctive?

Is it relevant to target customers? IIs it relevant to target customers? I

Is it timely and up to date?Is it timely and up to date?

Etc.Etc.


Asking/answering these questions put you on Asking/answering these questions put you on your wayyour way

If you are willing to work to find the right If you are willing to work to find the right focus/perception, you can maximize growthfocus/perception, you can maximize growth

If it is too much work or you don’t want to do it, If it is too much work or you don’t want to do it, remember you are already a brand whether you remember you are already a brand whether you like it or not - - so you’d better like what you are!like it or not - - so you’d better like what you are!


Using the branding process is your call.Using the branding process is your call.

As you decide, consider the words of As you decide, consider the words of ConfuciusConfucius centuries ago: centuries ago: ““I hear and I forget. I see and I remember. I I hear and I forget. I see and I remember. I

do and I understand.”do and I understand.”

I hope you choose “to do” and enjoy the I hope you choose “to do” and enjoy the benefit of successful branding.benefit of successful branding.

Branding: Questions / DiscussionBranding: Questions / Discussion

what is branding anyway? ™ why should we care? m. richard wadley

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