Building brand equity
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06/20/22 06/20/22 1 Building Brand Equity Building Brand Equity Management Retreat Presentation by Management Retreat Presentation by Ademola Akinbola, Head, Corporate Ademola Akinbola, Head, Corporate Communication & Business Communication & Business Development, Nigerian Aviation Development, Nigerian Aviation Handling Company PLC, Lagos. Handling Company PLC, Lagos. May 31, 2008. May 31, 2008.
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Transcript of Building brand equity
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Building Brand EquityBuilding Brand Equity
Management Retreat Presentation by Management Retreat Presentation by Ademola Akinbola, Head, Corporate Ademola Akinbola, Head, Corporate Communication & Business Development, Communication & Business Development, Nigerian Aviation Handling Company PLC, Nigerian Aviation Handling Company PLC, Lagos.Lagos.
May 31, 2008.May 31, 2008.
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TESTIMONIESTESTIMONIES
““You won’t find it on the balance You won’t find it on the balance sheet. If you ask the wizards on Wall sheet. If you ask the wizards on Wall Street exactly how it figures into a Street exactly how it figures into a company’s net worth, be prepared company’s net worth, be prepared for some mighty blank stares. for some mighty blank stares.
But more and more companies are But more and more companies are now coming to realise that when now coming to realise that when managed correctly, a good name managed correctly, a good name can be their most VALUABLE and can be their most VALUABLE and ENDURING asset.”ENDURING asset.”
Fortune Fortune MagazineMagazine
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TestimoniesTestimonies
The marketing battle is a battle of brands, a The marketing battle is a battle of brands, a competition for brand dominance. Businesses competition for brand dominance. Businesses now recognize their brands as their most now recognize their brands as their most valuable assets. valuable assets.
It will be more important to own markets than It will be more important to own markets than to own factories. The only way to own markets to own factories. The only way to own markets is to own market-dominant brands.is to own market-dominant brands.
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Perspectives on Brands (1)Perspectives on Brands (1)
. . . Traditional Assumptions . . . Traditional Assumptions
Vision/mission statements and corporate Vision/mission statements and corporate values are usually regarded as puffery. values are usually regarded as puffery.
Different departments and branches of the Different departments and branches of the same Company can communicate differently same Company can communicate differently with customers without consideration for the with customers without consideration for the organisation as a whole.organisation as a whole.
We can stand for one thing with customers, We can stand for one thing with customers, another with employees and yet another another with employees and yet another with investors. with investors.
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Perspectives on Brands (2)Perspectives on Brands (2). . . We are in this together. . . We are in this together
•The Brand is the soul of the organisation. Understanding its core values becomes the responsibility of everyone; from the Human Capital Manager who is recruiting new talents, to the Customer Service Manager who Is the direct link to the customer, to the ICT Manager who is managing service automation.
•Branding is not a function performed by one Department. All Departments must be brand-focused in every aspect of their operations.
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Perspectives on Brands (3)Perspectives on Brands (3) . . . the Important Asset. . . the Important Asset
• In the highly competitive aviation services In the highly competitive aviation services market place, our brand is one of our valuable market place, our brand is one of our valuable assets. In order for us to survive and grow, this assets. In order for us to survive and grow, this brand must be consciously built, dutifully brand must be consciously built, dutifully nurtured and properly managed. nurtured and properly managed.
• To succeed, an organisation must position itself To succeed, an organisation must position itself not only for operational excellence, but also not only for operational excellence, but also distinguish itself by being seen to be better distinguish itself by being seen to be better from its competitors, the very essence of from its competitors, the very essence of branding. The key issue then is not whether to branding. The key issue then is not whether to create a brand but how to manage it. create a brand but how to manage it.
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Perspectives on Brands (4)Perspectives on Brands (4) . . . the Cutting Edge . . . the Cutting Edge
• A company’s brand is the primary source A company’s brand is the primary source of its competitive advantage and a of its competitive advantage and a valuable strategic asset. It is suggested valuable strategic asset. It is suggested that a company should consider its brand that a company should consider its brand as not just a product or service, but as an as not just a product or service, but as an Organisation, a person, and a symbol. Organisation, a person, and a symbol.
• A brand is not built overnight. Success is A brand is not built overnight. Success is measured in decades, not years. What measured in decades, not years. What works best is absolute consistency over an works best is absolute consistency over an extended period of time.extended period of time.
(Al & Laura Ries, (Al & Laura Ries, 22 laws of branding22 laws of branding
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What Is a Brand ? (1)What Is a Brand ? (1)
Brands are images and impressions generated about Brands are images and impressions generated about companies or products that become intangible and companies or products that become intangible and dynamic assets (or liabilities). Brands include names, dynamic assets (or liabilities). Brands include names, symbols, perception of stakeholders and the public in symbols, perception of stakeholders and the public in general.general.
A brand is an integrated promise shaped by both the A brand is an integrated promise shaped by both the Organisation’s claims and the experience of its Organisation’s claims and the experience of its stakeholders. The worth of A brand is said to be the degree stakeholders. The worth of A brand is said to be the degree to which it can provide competitive advantage in the to which it can provide competitive advantage in the market place.market place.
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What Is a Brand ? (2)What Is a Brand ? (2)
In broad terms, a brand can be equated with In broad terms, a brand can be equated with
reputation. The brand of a bank and the reputation. The brand of a bank and the
reputation of an individual are similar in terms of reputation of an individual are similar in terms of
how they can change, as well as their importance.how they can change, as well as their importance.
.. An organisation’s brand is a key asset because it An organisation’s brand is a key asset because it
creates possibilities and sets limits in terms of creates possibilities and sets limits in terms of
what employees, customers and investors expect what employees, customers and investors expect
from that company. from that company.
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What Is a Brand ? (3)What Is a Brand ? (3)
A promise and its delivery A promise and its delivery create a reputation or brand create a reputation or brand image. Like reputation, branding image. Like reputation, branding is not optional. Constituent is not optional. Constituent publics will form their own publics will form their own perceptions, and these perceptions, and these perceptions are more important perceptions are more important than products or services in the than products or services in the market place.market place.
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What is a Brand ? (4)What is a Brand ? (4)
Branding cannot succeed if it Branding cannot succeed if it
stops at the point of making a stops at the point of making a
promise or is viewed as promise or is viewed as
advertising. If branding is not advertising. If branding is not
part of the daily decision making part of the daily decision making
at all levels of the organisation, it at all levels of the organisation, it
will be sidelined by short-term will be sidelined by short-term
financial goals.financial goals.
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How Brands Are BuiltHow Brands Are Built
Traditionally, brands have been considered to Traditionally, brands have been considered to be a function of advertising and other be a function of advertising and other communication efforts. However, this is no communication efforts. However, this is no longer tenable. The perceptions of the public longer tenable. The perceptions of the public about an organisation are not shaped alone about an organisation are not shaped alone by what the company says about itself by what the company says about itself through its communication. through its communication.
Customers’ experiences in the banking hall, Customers’ experiences in the banking hall, internal service quality, the work internal service quality, the work environment, operating performance, environment, operating performance, employees’ perceptions, etc, affect how employees’ perceptions, etc, affect how stakeholders view the brand.stakeholders view the brand.
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How Brands Are Built (2)How Brands Are Built (2)
Therefore, there must be Therefore, there must be harmony between customers, harmony between customers, employees, and investors’ employees, and investors’ perceptions of the company. perceptions of the company.
If any of the three constituent If any of the three constituent units is dis-satisfied, it will filter units is dis-satisfied, it will filter through to the other.through to the other.
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Key Brand Drivers Key Brand Drivers
Emotional appeal Emotional appeal (natural (natural likeness, trust, respect)likeness, trust, respect)
Leadership & vision Leadership & vision ((inspirational, honest, focused, inspirational, honest, focused, stable)stable)
Products & services Products & services (value (value adding, innovative) adding, innovative)
Workplace environment Workplace environment (well (well managed, appealing)managed, appealing)
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Key Brand Drivers (2) Key Brand Drivers (2)
Operating resultsOperating results Social responsibility Social responsibility ((support support
for worthy causes)for worthy causes) Stakeholders’ whisper Stakeholders’ whisper
campaigncampaign Corporate communicationCorporate communication
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Brand Value & Brand EquityBrand Value & Brand Equity
The value of a brand is not a theoretical The value of a brand is not a theoretical calculation; It is pragmatic and it is calculation; It is pragmatic and it is relevant to the bottom line. As competition relevant to the bottom line. As competition increases and customers are faced with increases and customers are faced with better options, we have to stand for better options, we have to stand for something compelling in the minds of our something compelling in the minds of our stakeholders. stakeholders.
Otherwise, we risk being viewed as Otherwise, we risk being viewed as commodities that compete only on the commodities that compete only on the basis of price. The successful company will, basis of price. The successful company will, therefore have a brand strategy if it is to therefore have a brand strategy if it is to survive and prosper.survive and prosper.
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Brand Value & Brand Equity Brand Value & Brand Equity (2)(2)
The rewards of being viewed as a strong The rewards of being viewed as a strong
brand are high and include name awareness, brand are high and include name awareness,
brand loyalty, perceived superior quality, brand loyalty, perceived superior quality,
premium pricing, marketing spending premium pricing, marketing spending
efficiency, repeat patronage, easier line efficiency, repeat patronage, easier line
extensions and introduction of new extensions and introduction of new
businesses, customer testimonies, higher businesses, customer testimonies, higher
entry barriers for competitors. entry barriers for competitors.
All of these impact on the bottom line.All of these impact on the bottom line.
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Where Do We Go From Here?Where Do We Go From Here? . . . Way 4ward for Brand NAHCo. . . Way 4ward for Brand NAHCo
Collectively, we must all understand Collectively, we must all understand why we should build a strong brand why we should build a strong brand and the factors that influence brand and the factors that influence brand loyalty and create enduring brand loyalty and create enduring brand value. The question then is: short value. The question then is: short term profitability or enduring growth term profitability or enduring growth that leads to high brand value? that leads to high brand value? Business as usual or business Business as usual or business unusual? Do we want to build a unusual? Do we want to build a Company or an institution?Company or an institution?
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Where Do We Go from Here? Where Do We Go from Here? (2) (2) . . . Way 4ward for Brand NAHCo. . . Way 4ward for Brand NAHCo
Branding helps in answering the customer’s Branding helps in answering the customer’s question: question: Why should I do business with Why should I do business with NAHCo? NAHCo? From the moment a customer reads From the moment a customer reads a news item about the Company, holds our a news item about the Company, holds our brochure, walks into our office, looks at our brochure, walks into our office, looks at our website, or subscribes to our product/service, website, or subscribes to our product/service, he/she begins to form an opinion about our he/she begins to form an opinion about our brand and its value. Is it reliable? Is it brand and its value. Is it reliable? Is it effective? effective?
Is it better than others? Is it worth the price? Is it better than others? Is it worth the price?
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Building A Strong Brand Building A Strong Brand . . . Collective Vision . . . Collective Vision
• The vision and mission of NAHCo The vision and mission of NAHCo should be understood, accepted, and should be understood, accepted, and embraced by everyone. We should all embraced by everyone. We should all see ourselves as brand advocates, see ourselves as brand advocates, brand stewards and brand brand stewards and brand ambassadors. For us to function ambassadors. For us to function effectively in any of the three roles effectively in any of the three roles identified above, we need a thorough identified above, we need a thorough understanding of the vision, mission, understanding of the vision, mission, values, and focus of the Company.values, and focus of the Company.
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Building A Strong Brand (2)Building A Strong Brand (2). . . . . . Coalition of ForcesCoalition of Forces
• Allignment of business plans with Allignment of business plans with NAHCo’s corporate positioning and brand NAHCo’s corporate positioning and brand essence is key. Managers must begin to essence is key. Managers must begin to integrate the vision, mission and integrate the vision, mission and corporate values of the Company into corporate values of the Company into their business strategies. Building brand their business strategies. Building brand equity should be inseparable from normal equity should be inseparable from normal business decisions. business decisions.
• Most clients believe any promise we make Most clients believe any promise we make applies to all the interactions they have applies to all the interactions they have with us. Without proper alignment, this with us. Without proper alignment, this promise will be broken and brand equity promise will be broken and brand equity will weaken. Teamwork and co-operation will weaken. Teamwork and co-operation across all departments is needed.across all departments is needed.
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Building A Strong Brand (3)Building A Strong Brand (3). . . Human Capital Perspective. . . Human Capital Perspective
• We should define who the typical We should define who the typical NAHCo staff is so that conscious NAHCo staff is so that conscious efforts could be made to go for efforts could be made to go for such people during recruitment. such people during recruitment. There is need for more emphasis There is need for more emphasis on the qualitative aspect of on the qualitative aspect of recruitment, not just quantitative. recruitment, not just quantitative. Training becomes easier when Training becomes easier when the “right” people are recruited. the “right” people are recruited. They will now be trained in ways They will now be trained in ways that will align them with NAHCo’s that will align them with NAHCo’s vision. vision.
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Building a Strong Brand (4)Building a Strong Brand (4). . . Empowering employees. . . Empowering employees
• Our staff are the most potent weapon we Our staff are the most potent weapon we have in pushing our brand. We must have in pushing our brand. We must therefore empower employees with all the therefore empower employees with all the things that will put them in a position to things that will put them in a position to be committed to the growth of the brand be committed to the growth of the brand as brand stewards. as brand stewards.
• Brand building efforts will amount to Brand building efforts will amount to nothing; in fact, it may be counter nothing; in fact, it may be counter productive, if employees do not feel productive, if employees do not feel committed to the vision of the Company or committed to the vision of the Company or if they don’t even understand the core if they don’t even understand the core values of the Company.values of the Company.
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Building a Strong Brand (5)Building a Strong Brand (5). . . the customer perspective. . . the customer perspective
• Today’s customer takes quality service Today’s customer takes quality service for granted because it remains a generic for granted because it remains a generic brand offering for all focused companies. brand offering for all focused companies. We should identify the peculiar needs of We should identify the peculiar needs of our customers and define quality service our customers and define quality service within the context of such needs. We within the context of such needs. We need to deliver quality service need to deliver quality service as defined as defined by the customerby the customer. .
• Value lies in the mind of the consumer. Value lies in the mind of the consumer. What we think our brand is does not What we think our brand is does not matter; It is what the customer thinks matter; It is what the customer thinks that really counts.that really counts.
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Building A Strong Brand (6)Building A Strong Brand (6). . . An Eye on the Bottom Line. . . An Eye on the Bottom Line
•The results we declare will ultimately reinforce brand equity and enhance public perception. A respectable result will motivate employees, sustain customers’ confidence, delight shareholders and win critical investors to our side.
•The brand will need all these stakeholders to retain market share and conquer new territories. The results must match public perception, otherwise there will be a dissonance gap.
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Building A Strong Brand (7)Building A Strong Brand (7). . . Love Thy neighbour. . . Love Thy neighbour
• Building a strong brand is a long term Building a strong brand is a long term
investment. One of the core areas of investment. One of the core areas of
our brand investment is the society our brand investment is the society
within which we operate. Nothing within which we operate. Nothing
detracts from brand equity more than detracts from brand equity more than
“bad will” earned as a result of an “bad will” earned as a result of an
indifferent or negative attitude towards indifferent or negative attitude towards
the needs of the larger society. We the needs of the larger society. We
should continue to be genuinely should continue to be genuinely
socially responsible. socially responsible.
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Building A Strong Brand (8)Building A Strong Brand (8). . . I don’t know what you are doing. . . I don’t know what you are doing
• Public Relations is the good deed that Public Relations is the good deed that you communicate. Having the best you communicate. Having the best product does not mean the world will product does not mean the world will beat the path to your office. beat the path to your office. Therefore, we should continue to Therefore, we should continue to formally and informally communicate formally and informally communicate the things we do to all relevant the things we do to all relevant stakeholders. In doing this, there will stakeholders. In doing this, there will be need for consistency, be need for consistency, commitment, creativity, and constant commitment, creativity, and constant evaluation.evaluation.
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Internal processesInternal processes
• CCBD will work towards empowering members of CCBD will work towards empowering members of staff with information on the corporate and staff with information on the corporate and product brand in order to equip them sufficiently product brand in order to equip them sufficiently for the challenges of marketing the brand in the for the challenges of marketing the brand in the competitive market place. A staff competitive market place. A staff handbook/manual is being produced to further handbook/manual is being produced to further achieve this. achieve this.
• We will be looking at issues of cultural re-We will be looking at issues of cultural re-orientation, teaming/bonding, free flow of orientation, teaming/bonding, free flow of information, rewards/punishment, motivation, etc. information, rewards/punishment, motivation, etc.
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Internal Processes (2)Internal Processes (2)
• To promote teaming, we will introduce To promote teaming, we will introduce formal and informal programmes formal and informal programmes aimed at bringing staff together in a aimed at bringing staff together in a relaxed setting.relaxed setting.
• We are interested in working with We are interested in working with other groups in driving operational other groups in driving operational efficiency across the board in the efficiency across the board in the bank, believing that the brand must bank, believing that the brand must deliver on what it promises to its deliver on what it promises to its stakeholders. We will liaise with HR stakeholders. We will liaise with HR on appropriate training programmes on appropriate training programmes that will re-orientate staff. that will re-orientate staff.
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