Tuesday, October 13, 2009
Brand Story - Stella Artois
Monday, October 12, 2009
Positioning les brands
Brand Positioning is how a product appears in relation to other products in the market.
Here are the 5 main factors that go into defining a brand position as defined by Susan Gunelius, President and CEO of Keysplash Creative.
1. Brand Attributes
What the brand delivers through features and benefits to consumers.
2. Consumer Expectations
What consumers expect to receive from the brand.
3. Competitor attributes
What the other brands in the market offer through features and benefits to consumers.
4. Price
An easily quantifiable factor – Your prices vs. your competitors’ prices.
5. Consumer perceptions
The perceived quality and value of your brand in consumer’s minds (i.e., does your brand offer the cheap solution, the good value for the money solution, the high-end, high-price tag solution, etc.?).
Brands can be positioned against competing brands on a perceptual map. The maps I’ve seen and used in class usually have four sections on the x/y axis. You place a dot where you think that brand fits in relation to Price (high vs. low) and Quality (high vs. low). They’re effective as a starting point for visually positioning your brand against others, but they leave out some important variables like social or environmental forays. Or how family friendly they are. Or if they’re bad-ass. Any of the more detailed perceptual maps get immediately confusing to me, though. I’d much prefer to position my brand with a good old fashioned sentence or two.
Sunday, October 11, 2009
Creating Brand Personality
Whether a brand is a product or a company, the company has to decide what personality traits the brand is to have. There are various ways of creating brand personality. One way is to match the brand personality as closely as possible to that of the consumers or to a personality that they like. The process will be
1.define the target audience
2.find out what they need, want and like
3.build a consumer personality profile
4.create the product personality to match that profile
This type of approach is favored by companies such as Levi Strauss, who research their target audience fastidiously. For Levis the result is a master-brand personality that is:
-original
-masculine
-sexy
-youthful
-rebellious
-individual
-free
-American
A related product brand personality (for a specific customer group) such as Levi's 501 jeans is:
-romantic
-sexually attractive
-rebellious
-physical prowess
-resourceful
-independent
-likes being admired
Both profiles appeal mostly to the emotional side of people's minds - to their feelings and sensory function. This profiling approach aims to reinforce the self-concept of the consumers and their aspirations. The approach is ideal for brands that adopt a market-niche strategy, and can be extremely successful if a market segment has a high degree of global homogeneity, as is the case with Levis.
Saturday, October 10, 2009
The importance of Brand Architecture
Brand architecture serves as a navigation tool for customers. It helps minimize customer confusion by laying out the product structure in a way that makes it easy for customers to find what they are looking for and to understand what the company has to offer.
An example:
In 2001, AT&T’s “Managed Services” division was facing a trend in downward sales. It had over 12,000 offerings, the majority of which were sold to customers under the “Managed Services” brand. They quickly noticed two major problems:
1) customers and sales force were confused by the vastness of the offering
2) customers saw AT&T as a product company rather than a company capable of providing value-added services as the “Managed Services” name implied.
AT&T had to figure out what their target customers wanted from a telecommunication solutions provider. They found two distinct customer segments, each with fundamentally different needs and ways of thinking about telecom solutions.
1) “Product Buyers” look for specific product sets and sophisticated components and thus require a wide variety of distinct products
2) “Solutions buyers” are less expert and seek holistic business solutions that are all-inclusive and off-the-shelf.
With this insight, AT&T developed a dual brand architecture model that presented the same products in two different ways (enabling each segment to find what they were looking for). This new structure allowed “Product Buyers” to navigate offerings by product category and type, while “Solutions Buyers” could choose between different groupings of offers that met their overall needs. As a result, customers could more easily speak about and explain what AT&T could offer.
AT&T also renamed the division “AT&T Enterprise” in order to reflect the broader focus.
Thursday, October 8, 2009
Extending your Brand
Here are some of the worst brand extensions of 2008 (as noted by Brandweek’s editor-in-chief, Todd Wasserman).
- Burger King Underwear
- Rolling Stones Ice Wine
- Sleeping Beauty pens for $1,200
- Playboy Energy Drink
- Kellogg’s Hip Hop Street Wear
- Another one he mentioned from before 2008 was Cheetos Lip Balm.
The only one I can kind of get on side with is the Playboy Energy Drink. Though it does seem a little too specific in focus (guys wanting energy for sex, or maybe out partying with the opposite sex), it still lines up a little bit with the Playboy ideology.
Todd also mentioned – for contrast – a brand extension that made a lot of sense. V8 Gourmet Soup recently hit the markets and is selling very well. I have to confess: I would never drink their juice (outside of a Caesar situation), but I would definitely try their soup because I assume it’s healthy and delicious. I make that assumption largely from what I’ve learned about their brand. That’s pretty good brand equity.
Wednesday, October 7, 2009
What makes us loyal to brands?
Brand loyalty is a consumer’s preference to buy a particular brand in a product category. It happens when consumers perceive that the brand offers the right product features, image, or level of quality at the right price. This becomes the foundation for a new buying habit. Basically, consumers will make a trial purchase of the brand and, after satisfaction, will form habits and keep purchasing the same brand because the product is safe and familiar. Brand loyalists are committed to a brand, willing to pay a higher price for a brand over other brands, and recommend a brand to others.
Consumers must like the product in order to develop loyalty to it. In order to convert occasional purchasers into brand loyalists, habits have to be reinforced. Consumers must be reminded of the value of their purchase and encouraged to continue purchasing the product in the future.
To encourage repeat purchases, advertising before and after the sale is important. In addition to creating awareness and promoting initial purchases, advertising shapes and reinforces consumer attitudes so these attitudes mature into beliefs, which need to be reinforced until they develop into loyalty. For example, I read once that the most avid readers of a travel ad are those who just returned from the destination. Ads reinforce a traveler’s perception and behaviour. It’s easier to reinforce behaviours than to change them, and the sale is just the beginning of an opportunity to create brand loyalty.
A few things that can be done to foster brand loyalty:
Have an unbeatable product - if you want to keep customers, make sure they can get what they want from your product.
Give customers an incentive to repeat-purchase – a chance to win a prize, in-pack discount coupon, etc.
Stand behind your product - if customers don’t trust the product, they won’t purchase it again.
Know your top buyers and treat them best of all - I think of the 80/20 rule we learned in school: 80% of sales will come from the top 20% of customers.
Make it easier to buy your brand than competing brands - Customers appreciate convenience more than ever.
Have kick-ass customer service! - serve the customer and they will repeat-purchase again and again. I read a book – A New Brand World – where the author, Scott Bedbury, talks about being the Brand Manager for Starbucks coffee. Now that is a company that is all about customer service; they have quite an extensive employee training program to make sure all employees are doing their best to provide the best product and the best customer service at all times (because they know that great customer service leads to brand loyalty!).