Branding Backgrounder

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What is Brand? Why Brand? What difference does Brand make?

Transcript of Branding Backgrounder

  • 1. What is Brand?Why Brand?What difference doesBrand make?1

2. Introducing BrandA strong corporate brand is the evocative articulation of organisations purposeBeyond mission statements and objectives, the brand encapsulates a core promise and answers why choose us? and how we are different?.Brands creates simplicity out of complexity.Brands take the rational and make it emotional through the use of language and symbols as a shortcut to decision making and the guarantee of a promise made.Strong brands energise people - for employees they create meaning, stirXXX emotions and engage people.Externally the brand creates a connection and commitment with customers. 3. What is the role of Corporate Brands?They help businesses PERFORMThey INSPIRE employeesto live by the brand with enthusiasm andconvictionThey PROTECT againstpredatorsInternal AlignmentValueandcreationEngagementUNIFYThey help organisations Make sense of the CHANGE via unchangingbusiness as a values which help thewhole organisation flex 4. Characteristics of successful brands One simple, unifying idea delivered clearly and consistently A clearly articulated, vision shared across the organisation A point of differentiation from your competitors Understanding your stakeholders needs, delivering and exceeding them Building on a solid foundation of strong business fundamentals Staff and executives who live and breathe their brand and walk the talkHowever, this does not happen by chance. Businesses who do this wellhave a sound strategy & positioning which makes branding look easy. 5. Why is this important?Organisations & senior executives typically understand thetip of the iceberg: Name Logo The real power is aligning to the above whilst also creating real meaning for your stakeholders, What is your positioning? Is it Credible, Sustainable, Relevant and Unique ? What do you stand for? How are you truly different? Are your internal stakeholders aligned with what you are saying? Do you know what your external stakeholders seek, expect and want?Have you got the clarity beneath the surface? 6. Successful businesses align their proposition Customer facing Proposition Why do business with us? Employee facing Proposition Why join or stay with us? Investor facing Proposition Why invest with us? Community Values Proposition Why believe in us? The Corporate Brand links these propositions 7. Successful branding projectsGreat brands are a combination of : Insight and understanding of the business and marketplace A clear group vision/strategic positioning Clear brand values Creative inspiration that reflects the Role, Purpose and Values of the brand A consistent delivery throughout the marketing mix and to all brandstakeholdersCritical success factors include Senior management mandate and ongoing support A core team resourced and empowered to bring the entire project together Experienced branding partner with proven process and capabilities A deadline and the commitment to stick to it 8. Why Brand?8 9. In the context of Financial Services Financial Services marketing communications is characterised by numbingsameness, commoditised product feature wars, and laundry lists of productbenefits. Its a sea of noise, parity, clutter and dullness... Branding helps cut through the morass of the market, get noticed, andconnect with the customer on many levels and in ways that matter. A strong brand becomes the clients shorthand for making choices in acomplex, risky, and confusing marketplace. 10. Is this rational??? What we actually think or why we buy a particular brand of product is basedon stored memories, images and feelings which is what a brand is allabout Will we really belong to some rebel tribe by buying a motorcycle? Does every woman identify with Audrey Hepburn because her gift camein a light blue box? It is one of the key reasons why we operate from feelings over facts,respond to emotion over reason, and choose great brands over their serviceor commodity substitutes. 11. Enough already!The surplus society has a surplus of similarcompanies, employing similar people, with similareducational backgrounds, coming up with similarideas, producing similar things, with similar prices andsimilar quality.Kjell Nordstrom and Jonas Ridderstrale, Funky Business 12. What difference doesBrand Make? 13. What is the value of a strong, differentiated brand?Strong brand Weak brand Clear understanding among target Poor brand recognition and confused market of your positioning & offering value proposition Increased ability to attract clients Limited ability to differentiate Ability to retain & attract higher quality Reduced ability to attract quality staff employees Market unclear of offering Increased brand equity & awareness Confusion of relationship between Consistent representation of brand parent and sub brands among staff and marketing messagesand market Positive impact on share price* Limited brand equity built See notes Limited ability to build brand loyalty Potential to demand premium price* and preference among stakeholders Customers will pay 19% more for a leading brand name See notes 14. Building brand equity - Moving to desired.Where are we today?HighHigh brand Equity & High Brand Equity & Low Market Share Strong market Share Equity under leveragedStrong brands Desired Brand Equity Weak Brand Equity &Weak Brand Equity &Strong Market Share Low Market ShareVulnerable build Brand Current?Growth Opportunity Equity Low Market ShareSource: A.C.Nielsen 15. Summarising the Corporate benefitsImproved corporate reputation & better known brandMore robust share price Increased ability to withstand adverse news, results or economic downturnClear Differentiation Increased ability to attract and retain quality staffFocused workforce - staff all singing from the same song book Strong, unified cultureConsistent marketing, communication and brand representationSymbiotic relationship between corporate brand and business units 16. Benefits of an aligned BrandInternalExternalHuman Resources Customers and Distribution Channels Existing Improved access to and retention of and New employees Provides customers with a clearer Improved satisfaction of new and long understanding of the value proposition, standing employees delivering greater ease and more Improved engagement and productivity of meaningful, dimensional and sustainable employeesrelationships,CommunityCorporate and Business functions Provides the community with a greater andclearer understanding of the reason they Deeper alignment, cohesion andexist, how they are positioned, what theyunderstanding across the entire believe in and what role they play in theorganisation: department, division, city, broader communitycountry region or globally and how it playsout on a daily basisPotential Employees Greater degree of focus and flexibility, Greater clarity and simplicity about who wereduces confusion and ambiguity are, what we stand for and what a careerwith us looks like Assists in ensuring that Fidelity becomes anoutward-looking, flexible, integrated and A distinctive and clear EVP, internally andmore responsive organizationexternally aligned that attracts the bestgraduates Strategy and priorities are communicatedand clearly understood by all staff and A clear market leader to seek out amongst amanagementmyriad of competitors 17. More Benefits of Building Brands The emotional connections between brands and buyers leads to greater access, lower price sensitivity, better openness, and more forgiveness for mistakes for well - branded companies. In fact strong brands are reflected in these preferential actions: Increased willingness to try a product or service. Lower time required to close a sale Greater chance that the product or sale is purchased Willingness to give a larger sum of purchase requirement Comfortableness with paying a price premium Lowered sensitivity to price increases Lowered inducement to experiment with competitive offerings. In Summary:A strong brand brings tangible commercial benefits. It ensures youre a must have on any shortlist. It justifies a price premium. It helps drive customer loyalty. 17 18. Summarising the outcomes Your brand strategy builds current brand positioning and extends the brand todevelop a unique & sustainable market position across all sectors of the business &across all stakeholders It creates a platform to drive connectivity between business divisions adding valueat a corporate level and across business units It delivers a stronger understanding of and commitment to the brand among staff It can include a brand identity system and visual language (look & feel, tone of voice,etc) calibrated to present consistency, while aligning to the needs & wants of thebusiness unit brands within the business Implementation then plans to bring the program to life for internal and externalaudiences Supported by tools to track brand performance and measure improvements in brandhealth 19. Thanks!