BMA Chicago - Forget Brand Preference, Win the Brand Relevance War
1. Forget Brand Preference
Win the Brand Relevance Battle
DAVID A. AAKER
Vice Chairman, Prophet
Blog: davidaaker.com
BMA Chicago
October, 2012
Proprietary and confidential
Do not distribute
4. The Computer Industry
Minicomputers
Network Workstations
Graphic Workstations
Build to Order PCs
Brand Relevance 4
5. Customer Decision Process
Brand Relevance Brand Preference
Select Product Determine
Category or Brands Select Brand to Buy
Subcategory To Consider
SUV Audi BMW
BMW
Mercedes-Benz
Brand Relevance 5
6. Routes to Winning
Brand Preference Brand Relevance
Competitor Competitor
Brand Brand
Winning VS.
Means
Not Not
Preferred Considered
Brand Relevance 6
7. Innovation Continuum
Innovation Incremental Substantial Transformational
Offering Noticeable Impact New Category Game Changer
Enhancement On Brand Preference Or Subcategory
Online Shipping
CORNING Gorilla
Glass
Brand Relevance 7
11. The Pay Off
108 Business launches: Those creating new categories or subcategories:
• 14% of sample
• 38% of revenue
• 61% of profits
McKinsey Study: 1,000 firms, 40 years
• New entrants
• Return premium over average for their industry
• First year 13%
• 3% in fifth year
• 1 % in tenth year
New Product Success Correlated with Differentiation
Brand Relevance 11
12. Defining Categories/Subcategories
Applications
Shared Interest
Values that connect
Components to systems
Augmented
relationship
Brand Relevance 12
13. Create Barriers
Execute over the top
Continuously innovate
Nano Shuffle Touch iPad
Be the Exemplar
Branded differentiator
Brand Relevance 13
14. The Power of Branding Innovations
OuterStyle OuterStyle
Alpine Class Fill
Brand Relevance 14
19. “You do not merely want to be considered
just the best of the best,
You want to be considered the only one
who do what you do.”
Jerry Garcia, The Grateful Dead
Brand Relevance 19
20. Relevance Threat
Lose Brand Relevance
No Longer Make What Lose Energy Have Compelling
Customers Are Buying & Visibility Negative
Brand Relevance 20
24. Reposition – “Products” to Delivering “Solutions”
The Solutions Journey
Starting
Point
Commodity Commodity Value Added Services System Integrated
+ Free Products Services/ Products
Services Products & Services
Products
Products Transition
Transition Solutions
Solutions
Deck Title Proprietary and confidential. Do not distribute. 24
26. Relevance Threat
Lose Brand Relevance
No Longer Make What Lose Energy Have Compelling
Customers Are Buying & Visibility Negative
Brand Relevance 26
27. The Decline of Brands
Brand Asset Valuator
•40,000 brands
•44 countries
•70 metrics
•15 years
Trustworthiness down 40% in 13 years
Quality perception down 24% in 14 years
Awareness down 20% in 13 years
Brand Relevance 27
29. Extend the Brand
• Body Wash with Nutrium
• Facial Core Cleanser
• Antiperspirant & Deodorant
• Shampoo with Weightless Moisturizer
• Nutrium Beauty Bar
• Men & Care
$200M
1990
Brand Relevance 29
30. Avon--Branded Program
Raised $640 million since 1992
Educated 100 million women
Brand Relevance 30
32. Relevance Threat
Lose Brand Relevance
No Longer Make What Lose Energy Have Compelling
Customers Are Buying & Visibility Negative
Brand Relevance 32
35. Forget Brand Preference
Win the Brand Relevance Battle
DAVID A. AAKER
Vice Chairman, Prophet
Blog: davidaaker.com
BMA Chicago
October, 2012
Proprietary and confidential
Do not distribute
Hinweis der Redaktion
DHL Web Shipping ======= Online Shipping Solutions especially for companies Ability to book, track, and manage express shippings Includes label printing mechanism CORNING Gorilla Glass ======= Glass specifically engineered for the use in smartphones It is thin, light and extremely damage-resistant Developed in the 1960, but it came to success with the use in the first iPhone as Steve Jobs convinced the Corning CEO to start producing it It is currently used in over 600 million devices (smartphones, tablets, etc) Product videos: http://www.corninggorillaglass.com/#videos
Sony Erricson struggled after Apple released it ’s iPhone in the third quarter of 2007 Overall the handset shipments fell from 30.8M in 2007 to 8.1M in Q1 2011 They failed to compete in the areas of innovation and usability against Apples iOS and Googles Android and weren ’t able to position themselves with a well equipped smartphone. Thus, they were not in the considerationset in a rapidly growing sector In 2011 Sony aquired Ericssons stake and completed the acquisition in Febr. 2012
Sony Erricson struggled after Apple released it ’s iPhone in the third quarter of 2007 Overall the handset shipments fell from 30.8M in 2007 to 8.1M in Q1 2011 They failed to compete in the areas of innovation and usability against Apples iOS and Googles Android and weren ’t able to position themselves with a well equipped smartphone. Thus, they were not in the considerationset in a rapidly growing sector In 2011 Sony aquired Ericssons stake and completed the acquisition in Febr. 2012
The Dove story from 200 million to over 2 billion by extending the brand to other products and countries.
Sony Erricson struggled after Apple released it ’s iPhone in the third quarter of 2007 Overall the handset shipments fell from 30.8M in 2007 to 8.1M in Q1 2011 They failed to compete in the areas of innovation and usability against Apples iOS and Googles Android and weren ’t able to position themselves with a well equipped smartphone. Thus, they were not in the considerationset in a rapidly growing sector In 2011 Sony aquired Ericssons stake and completed the acquisition in Febr. 2012