In the 21st century, branding will ultimately be the only unique differentiator between companies. Brand equity is now a key asset.
Creating Brand Value is Good! Better financial performance Higher profit margins Better return on assets Stronger growth Stability
Whichever way you look at it, today’s most valuable brands are the most demonstrably powerful and sustainable wealth creators in the world
As a result of these high prospects many operators from around the world are engaging in a continuous effort to create brand value by building their own brand
So What Does It Take to Build Brand Value?
Brands Are Like People!
In The Past… Unlike the approach of consultancy and financial analysis which leveraged hard data, brand building was considered as something intuitive (and quite elusive)
Not Anymore! Today, many brand building experts leverage quantitative tools to assess brand equity and value
We Use
Global Mobile Average Very close to the Global Brand Average Strong Brand Affinity Wanna Believers (20%) Believers (19%) Weak Brand Behavior Strong Brand Behavior Hostages (8%) Non-Believers (53%) Weak Brand Affinity
Telefonica (Brazil) Enviable Number of Believers within the Market Strong Brand Affinity Believers (47%) Wanna Believers (18%) Weak Brand Behavior Strong Brand Behavior Hostages (14%) Non-Believers (21%) Weak Brand Affinity
Why Believers?
Price the brand commands Model of Brand Value Price the brand commands Average Category Growth Believer Premium Brand Added Value Generic Branded Base Cost Business Model Value-Added
Believer Premium Higher Life-time Volume Per Household 10 Times Higher Volume than Average Category User Higher Willingness to Pay Full Price 15% Higher Price Paid than Average Purchaser Longer Retention 2/3 Less Year-on-Year Brand Slippage Among Frequent Purchasers Greater Brand Momentum Believers Beget Believers
We Know How Many Believers But How Do We Assess Belief?
Two Axes Measure Belief Both High Charisma High Integrity Charisma Integrity Neither
Not related to product news Not related to tactical campaigns Related to opening the heart Buying share of heart Charisma 23
“Charismatic Marketing” “Aspiration and Inspiration” A good fit with who I am Seems to be made “just for me” I really identify with this brand The brand has a warm, friendly feeling Does things in A/M that get your attention Does things in A/M that are unique, fresh and different Does things in A/M that other brands would Never think of Does things in A/M that are fun & clever If this brand was a person, he’d be charismatic If this brand had a temperature, it would be “hot” There’s something hip and cool about this brand The enthusiasm of the brand is catching Makes me feel more inspired about the category Helps me be the kind of person I want to be I aspire to be like people who use this brand Using this brand is a more emotionally rewarding experience “Dynamism” “Charismatic Marketing” “Identification” “Aspiration and Inspiration” Charisma
Hence, The Value of Corporate Communication The Added Value Is How the Brand Contributes to Our Value System (As Human Beings)
Related to consistency in behavior Related to consistency in delivery Builds the brand’s credibility Buys market share Integrity 26
“Authority and Stature” Uses latest technology to continually improve Never allows itself to become outdated or to fall behind Constantly updating and improving Wherever come in contact, delivers a clear, consistent message Never loses sight of what should be What this brand says and does – you can count on it This brand’s A/M has clear, consistent message High Quality Always delivers consistent product experience Reliable and dependable A brand you can trust Does what it says it will Sets the bar high for other brands of ____ When it comes to ____, this brand is the knowledgeable authority A brand with a bit of stature The real thing “Enduring Trust” “Consistent Idea” “Innovation” “Authority and Stature” Integrity
Hence, The Importance of Continuous Market Activity And All the Related Communication
Both High Charisma High Integrity Neither Charisma Integrity U.K. Map Rolex Sony High Charisma High Integrity Both Neither Coke Nike Adidas Phillips Reebok Swatch Pepsi Timex Apple Samsung Volvo Charisma Integrity Toyota Dell Red Bull Budweiser IBM Visa Heineken Master Card Fiat American Express U.K. Map
Thank You!