CREATING POWERFUL BRANDS IN A NEW MARKETING WORLD: Five Golden Rules Kevin Lane Keller Tuck School of Business Dartmouth College 1 STIMA International Marketing Congress December 5, 2014
Jul 15, 2015
CREATING POWERFUL BRANDS IN A NEW MARKETING WORLD:
Five Golden Rules
Kevin Lane KellerTuck School of Business
Dartmouth College
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STIMAInternational Marketing Congress
December 5, 2014
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Five Golden Rules of Branding
The customer is not in charge … and companies are more empowered too
Simplify … but don’t oversimplify Storytell ing is nice … but great products
and services are better There is no silver bullet … mix and match
activit ies around a brand promise Too much change or not enough change is
deadly … strike the right balance between continuity and change
1. The Customer is Not in Charge
Consumers are obviously more empowered They have the ability to collect information online, check reviews,
and do all kinds of things that they could never do before. But most customers have no interest in being
the “de facto brand manager” of Brand X . They already have a job, a family and many other things that
matter much, much more! Certainly some people do want to get more
involved with a brand Companies should do all they can to accommodate them in the
right way But the fact is i t ’s only some of the people with
some of the brands and even then only some of the time. 5
Not Very or At All Engaged
ModeratelyEngaged
HighlyEngaged
Brand Engagement Pyramid
Brand
Consumers
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3
Casual Athletes (“If you have a body, you are an athlete”)
“Weekend Warriors”
TopAthletes
Nike “Trickle Down” Engagement Model
Established Broad Access Point
Nike Innovations: Developing an “Ecosystem of Engagement”
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Nike+ FuelBand
NIKEiD Nike+ iPod
“Measurable Personal Improvement through Exercise”
1. … Companies are Being Empowered Too! Technology is empowering companies
as much as it is empowering consumers.
That can be a very good thing. The hope is that this wil l generate more productive exchanges. Companies can create products and deliver
marketing programs that better satisfy customers. Customers can better understand what suits their
needs and inform companies in return.9
2. Simplify … But Don’t Oversimplify
Beware of one word “brand essences” Purity of purpose – good Adequately accommodating consumer and
competitive dynamics – bad The reality is … most consumers
consider multiple factors and multiple brands in making choices
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Competit ive Brand Positioning Model Develop 3-5 unique points-of-difference
Desirable to consumers Deliverable by the company Differentiated from competitors
Establish 2-4 shared points-of-parity Negate competitor PODs Overcome perceived vulnerabilities from own PODs Demonstrate category credentials
With Brian Sternthal & Alice Tybout
Volvo Key point of difference
Safety But a safe car can be a …
Boring car Does Volvo need to be seen as
an excit ing car? No … just not boring!
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Uber Like many new
brands, Uber must establish points-of-parity to allow points-of-difference to matter
Points-of-parity Safe Legal Trusted
Point-of-difference Convenient Comfortable Cool
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BMW Positioned as unique combination of
luxury & performance Luxury cars (e.g., Lexus)
POP – Luxury POD – Performance
Sports cars (e.g., Porsche) POP – Performance POD – Luxury & Comfort
Reflected in U.S. slogan as the “Ult imate Driving Machine”
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Subway
Positioned as unique combination of taste, health, & convenience Fast food competitors (e.g.,
McDonald’s) POP – convenience & taste POD – health
Health food competitors POP – health POD – taste & convenience
Coke’s Misstep Coca-Cola “Real” campaign is
designed to reflect “genuine, authentic moments in l i fe and the natural role the brand plays in them.” The campaign wil l vary from country to country to reflect the differences in reality. Chris Lowe, CMO, January 2003
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What Happened to Coke? “In one ad, actress Penelope Cruz
guzzled a Coke and belched.” “In another ad, a sweaty basketball
player stuck a cold can of Coke in his armpit before offering it to his buddy.”
“Those spots, hallmarks of the doomed "Real" campaign were just the latest in a series of advertising mishaps at Coke.”
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Wall Street Journal, March 30, 2006
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Coca-Cola Posit ioning Points-of-difference
Distinctive taste profile Optimistic view of life Classic, iconic symbolism & imagery
Points-of-parity Contemporary, up-to-date Refreshing flavor
Brand mantra “Uniquely Optimistic Refreshment”
Ad slogan “Coke Side of Life” (Marc Mathieu) “Open Happiness”
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Brand Mantras Short 3-to-5 word phrases that capture the
irrefutable essence or spir it of the brand. Brand mantras typically are designed to
capture the brand’s points-of-difference, i.e., what is unique about the brand.
Key criteria Communicate Simplify Inspire
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Brand Mantra Examples
Nike “Authentic Athletic
Performance” Disney
“Fun Family Entertainment”
American Express “Worldclass Service,
Personal Recognition”
3. Storytel l ing is Nice … But Great Products & Services Are Better
Storytell ing can pull together various aspects of a brand and provide an appealing brand backdrop
But fundamentally … the strongest brands are also rooted in product performance
Emotional appeals are often most effective when l inked to functional benefits … it ’s not either/or!
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Pampers Pampers evolved from a
functional to an emotional positioning: Absorbency & dry baby “Caring for Baby’s Development”
Pampers changed marketing program accordingly Product development Marketing communications
Caring For Your Baby’s Development
Stimulation&
Learning Care
Diapering& Changing
Managing & TreatingIllnesses
HomeFurnishings
& Travel
Safety
Clothing
Sensors to Locate Child: safe zone, etc
RX
Baby Water
Baby Vitamins
SterilizingProducts
Gates / Locks /Intercoms / Monitors
High Chairs
Bottles/NipplesFormulaPrepared/Dried/Other
Baby FoodsBreast Pumps
Breast Pads
Infant Juices / Drinks
Feeding AccessDisposables
Illness DetectionSensors: e.g. ear infect., dehydration
Mom Hand Cleaners
Diaper Disposal
Infant/Toddler CarSeats
Household Safety Access
Day Care/Baby Sitting
Toys / Books
Videos / Music
Changing Tables
Strollers/Walkers BeddingBeds/Cribs
Diapers / Wipes
Diaper Rash Cream
Bibs
Diaper Bags
Mattress
June 6, 2002Baby Care NBD “Where to Play” Map (North America)
Disp Accessories - Bed Mats, Changing Mats, etc
Personal Cleansing
Feeding, Nutrition &
Water
OTC Medicine
AdjacentHome
Shoes Clothing
In-Market Staffed Project
Re-hydration Drinks Pedialite
Legend for Colors:
Pregnant/LactantWoman’s Nutrition
Feeding Access Durables
Surface Cleaners -Clean ‘n Play
Odor Eliminator and Air Products
LaundryProducts
Hair Care Baby Wash / Soap
Skin Care
Baby Environment
& Hygiene
Sun Care Oral Care
Toilet TrainingAccessories (Potty)
Insurance &Other services
Far Off Equity
Illness DetectionSensors: e.g. SIDS,
vital signs, etc
Wound Patch
Legend for Borders: TBD Fit w/ Pampers
Importance of BlendingFunctional & Emotional
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Facil i tates growth outside the category
Facil i tates choice inside the category
More abstract posit ioning
More concrete posit ioning
Products Can Always Be Differentiated Must stay innovative and relevant
in product and service development
There are so many means of product and service differentiation Must always aspire to push boundaries
and better achieve potential & the “ideal” product or service
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Warby Parker With material for frames from a family-owned
Italian company, assembly in China, and no middleman, it promises quality comparable to that of well-known designers at a fraction of the cost.
Warby Parker eyeglasses sell for a f lat $95 (or $145 for t i tanium frames) with free shipping and free returns.
To assess fit, customers can use a virtual try-on tool employing facial recognition technology or have up to five sample pairs shipped to try on in person.
Promoting “eyewear with a purpose,” Warby Parker donates one pair for every pair sold .
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Brand Resonance Model
RELATIONSHIPS:What about you & me?
RESPONSE:What about you?
MEANING:What are you?
IDENTITY:Who are you?
Intense,Active Loyalty
Positive,AccessibleReactions
Points-of-Parity& Difference
Deep, BroadBrand
Awareness
Resonance
Judgments Feelings
Performance Imagery
Salience
Stages of Brand Development
Branding Objective at Each Stage
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Building Blocks
4. There is No Silver Bullet … Mix and Match Around a Brand Promise
Brands benefit from a range of marketing activit ies Develop fully integrated channel and
communication strategies Make the whole of the branding
program greater than the sum of the parts “Mix & match” to optimally blend strengths &
weaknesses 32
Traditional, mass media
communications
“Real world,” experiential
communications
Online, interactive
communications
MARKETING COMMUNICATION INTEGRATION
Mobile,interactive
communications
IntegratingModern Communications
Tradit ional, mass media communications Greater control
Online, interactive communications Greater relevance
“Real world,” experiential communications Greater engagement
Mobile, interactive communications Greater timeliness
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“The AXE Effect” Online, created interactive viral campaign
with low-budget videos and girls being exaggeratedly attracted to guys
On-air, ran racy, award-winning TV ads Off-air, has concentrated grassroots
marketing efforts on college campuses with brand ambassadors who hand out products, host part ies and generate buzz
With mobile, a Twitter account dispenses advice and giveaways
Oreo “Celebrate the Kid Inside”
In the U.S., the highly successful campaign was buoyed by celebrations of the brand’s 100 t h birthday anniversary.
Ads and in-store contests created a birthday party atmosphere and focused on the “Twist, Lick and Dunk” method of eating Oreos with milk.
The 100-day “Daily Twist” promotion paired the brand with various cultural images and icons.
The Oreo birthday page received 25 mil l ion l ikes and sales increased 25 percent.
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“Last night, Oreo hit it big with a real-time marketing effort that became the talk–and tweet–of the Super Bowl.”
Oreo “Togetherness” in India
Launch ads reflected Oreo’s updated global posit ioning based on moments of togetherness and featured a father and son in the “twist, l ick, dunk” r itual.
Social media has Indian parents sign an “Oreo Togetherness Pledge” promising to spend more quality t ime with their children.
An Oreo Togetherness Bus roams the country providing a platform for parents and children to catch fun family moments.
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Benefits of Cause Marketing Improving social welfare (“win-win”) Creating differentiated brand positions Elicit ing emotional responses from
consumers Building strong bonds with consumers Enhance company’s public image Create reservoir of good wil l Boost employee morale Drive sales
Five Classic Cause Programs
American Express & Charge Against Hunger
The Avon Breast Cancer Crusade Ronald McDonald House
Charit ies Tesco – Computers for Schools Brit ish Airways – Change For
Good
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5. Avoid Too Much Change or Not Enough Change: Strike the Right Balance Between Continuity and Change
Manage brands for the long-run Avoid over-exposing, over-extending, over-
modernizing, over-discounting Avoid death by “1000 cuts”
It is easy to take advantage of a successful brand “The brand is so strong, so what if this is ‘off
brand’? How can this one little decision matter?”
Multiple compromises add up and can create big problems
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Respect the Brand Understand and appreciate the
brand and what it could be Cultivate internal brand experts and
advocates Preserve the legacy and integrity of the
founder
Help The Brand Reach its Potential Develop appropriately
aspirational brand positioning Have a “foot in the present” and a
“foot in the future” With the optimal “weight” on each foot
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Cisco Cisco seeks to transform its
image … from largest seller of switches and
routers to … a provider of voice, video, data and
wireless products to facilitate collaboration
Launched $100 mill ion marketing campaign
New logo, TV & print ads and product placement (“The Office”), Web blogs, chat rooms
“Welcome to the Human Network”
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But … Don’t Forget the “Spandex Rule”
“Just because you can … doesn’t mean you should!” Scott Bedbury, formerly
VP-advertising Nike & VP-marketing Starbucks
Virgin Brand strategy is to enter
categories where customers needs are not well met and … Do different things & Do things differently
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Compromising Brand Promise Too Often? Going into markets where consumer needs
are being reasonably well-met by others Over-Drawing Brand “Bank
Account” With Consumers? “Good things” – deposits “Bad things” – withdrawals
Virgin Mistake?
What’s a Brand Worth? It ’s worth what you can do with it … Consider Snapple
Quaker buys Snapple for $1.7 bil l ion in 1994 Sold to Triarc for $300 mill ion in 1997 Sold to Cadbury-Schweppes (with Mistic, Royal
Crown, etc.) for $1.45 bil l ion in 2000 Snapple value estimated at $1 bil l ion
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Snapple Was a Strong Brand Established “New
Age” beverage category
Points-of-dif ference All-natural Variety Down-to-earth Quirky
Points-of-parity Quality Accessible Taste
Mantra “Fun, Fresh, & Real”
Well-executed marketing program
Distinctive, wide-mouthed bottles
Constant innovation Humorous “Snapple
Lady” ads Oxymoronic
spokespeople Rush Limbaugh Howards Stern
Quaker Changes Cut number of f lavors (and didn’t introduce new
products quickly enough) Couldn’t capitalize on independent distribution
system Changed packaging to accommodate
supermarkets (e.g., 64 oz. bott les) Changed advertising & promotions (targeted
Coke & Pepsi) Fired Rush Limbaugh, Howard Stern, & Wendy Ignored seasonality of the business Underestimated competit ion & market trends
Triarc Revital ization Strategies Emphasize seasonality – dove into
summer Motivate distribution network
Drop supermarket packaging Develop product innovations
Whipper Snapple, Elements, Farms Re-engage advertising & promotions Update graphics on packaging
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The Five Golden Rules of Branding
The customer is not in charge … companies are also becoming more empowered
Simplify … but don’t oversimplify Storytell ing is nice … but great products
and services are better There is no silver bullet and there are no
short-cuts … mix and match around a brand promise
Strike the right balance between continuity and change … your past and your future
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Final Thought Good branding is an art and a science Success in brand marketing involves:
Achieving balance in all brand planning and execution
Finding the “win–win” sweet spots! By being …
Analytical & systematic – applying key concepts Creative & inspired – guided by a philosophy