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1Addictive-Strategy.com
Master Class Brand Strategy
Great Results Strat from a Different Mindset
u
Mihai Bonca
Business Focus Iasi
28 March 2018
Credentials
15 years of Marketing expertize
3Addictive-Strategy.com
Mihai Bonca
CV & Main Achievements
Brand Management (2003 - 2012)
Ursus Breweries/ SABMiller
1) Timisoreana became undisputed
market leader in 2008
2) Ciucas tackled the 2nd market
position by volume
3) Ursus is one of the strongest
Romanian brands, and leading
brand in local premium.
Marketing Director (2012 - 2015):
Bergenbier SA/ Molson Coors
1) Bergenbier SA, the single company to
increase its entire portfolio, between
2012 – 2015
2) Bergenbier brand had the best market
share increase
3) Beck’s, Stella Artois recovered after 5
years of decline
4) Staropramen has one of the best
evolution, from a difficult launch. to a
great development
5) Noroc returned to growth, for a 3rd
place in economy segment
Group Marketing Director (2015):
eMAG/ Naspers
1) Nurturing the eMAG brand strategy
and communication direction for the
4 countries
2) Marketing department organization in
group and local structure
3) “eMAG Marketing Way”,
development of marketing tools
(activity planning, first proposal of
commercial strategy, coop strategy)
4) Start Poland integration
4Addictive-Strategy.com
`
Brand Architects from September 2015
Positioning development, brand strategy, communication strategy, employer branding
Employer branding;
Communication pitch
National Football Team;
Cup of Romania strategy
Brand positioning;
Marketing strategy
training
Brand positioning &
Communication
development
Brand positioning;
Communication pitch
Marketing strategy
Training
Brand positioning &
Communication
development
Brand positioning &
Communication
development
Brand positioning;
5Addictive-Strategy.com
2005 - Timisoreana:
Silver EFFIE (Promotions FMCG)
2007 - Timisoreana:
EFFIE: Bronze Effie (Alcoholic drinks);
Bronze Effie (Promotions FMCG)
2008 - Timisoreana:
Grand Effie (All categories);
Gold Effie (Alcoholic drinks);
Silver Effie (Sustained success);
SABMiller Awards: Global best mainstream brand
2009 – Timisoreana:
SABMiller Awards: (Best global brand development; Best
global mainstream brand; Best European mainstream
brand);
Bronze EFFIE (Alcoholic drinks);
Internetics (Best online FMCG brand)
2010 - Timisoreana:
Grand EFFIE (All categories);
Gold EFFIE (Alcoholic drinks);
Portoroz (Silver medal for non-TV campaigns, Cup of
Romania)
2011- Ursus:
Silver Effie (Alcoholic drinks)
2013 - Bergenbier:
Silver Effie (Alcoholic drinks);
Internetics (Gold FMCG interactive campaigns)
2015 - Bergenbier:
Bronze Effie (Alcoholic drinks);
2015 – eMAG
Bronze Effie (Retail);
2015 –Brand Architects:
FRF– National Football Team: Gold Effie
3 Gold prizes @ Internetics (Best viral; Best online PR
project; Best art, culture and entertainment project).
Silver prize @ Romanian PR Awards
Mihai Bonca
25 MARCOM Awards and counting
What is Strategy?
The art of achieving superior performance
8Addictive-Strategy.com
Strategy
The Art of Creating Superior Performance
Offers sound executive judgement:
• Increases chances to succeed: more than one solution that is
good enough. Discriminates and does not look for perfection.
• Helps decision making: Defends your solutions with arguments
and data. Debates this options. Articulate decisions against
other people solutions.
• Helps avoid minefields: an infinite amount of solutions that
are not good enough.
• Match the best strategy: for the firm with what the
management can understand and do.
Source: Thomas Powell
Does not offer:
• A perfect solution (guaranteed to do that)
9Addictive-Strategy.com
Principles of Competitive Exclusions
Competition for identical resources
Two spices can’t coexist if they occupy the same niche/ compete for the same resources (Gause/ Darwin):
• No two species can coexist that make their living in the identical way.
• When any pair of species competed for some essential resource, sooner or later one displaced the other.
• In the absence of counterbalancing forces that could maintain a stable equilibrium by giving each species an
advantage in its own territory, only one of any pair survived
• At any given time, thousands of species are becoming extinct and thousands more are emerging.
*Source: The Origin of Strategy, Bruce Henderson, HBR nov- dec 1989
10Addictive-Strategy.com
Principles of Competitive Exclusions
Competition for identical resources
*Source: The Origin of Strategy, Bruce Henderson, HBR nov- dec 1989
Business world operates the same as animal kingdom:
• Two enterprises that deal in the same way, in the same territory for the same clients, under the same
conditions, cannot coexist.
• The essence of the contest: lies in extending the boundary of the advantage of your differences
• Competitors seek to differentiate themselves through competitive advantage.
Strategy:
• Understand the complex web of natural competition
• Searches for a plan of action that will create competitive advantage and compound it
• It is all-encompassing in its commitment.
*Global MS of smartphones by operating systems (Statistia)
11Addictive-Strategy.com
Key Strategy Principles
Strategy is the art of generals (”strategos” = general)
Focus on objectives:
• Objective: direct every operation towards a clearly defined, decisive objective
• Economy of Force: allocate minimum combat power to secondary efforts
• Unity of Command: for every objective, ensure unity of effort under one commander
• Simplicity: prepare clear, uncomplicated plans to ensure understanding
Source: Wiki: United States Army Field Principles
Preserve Mobility:
• Maneuver: place the enemy in a disadvantageous position through the flexible
application of combat power
• Security: never permit the enemy to acquire an unexpected advantage
Control de Engagement:
• Offensive: seize, retain, and exploit the initiative
• Mass: concentrate combat power at the decisive place and time
• Surprise: strike the enemy at a time, at a place, or in a manner for which he is
unprepared
12Addictive-Strategy.com
Company or Brand Strategy
Clear Objectives, Control de Engagement, Maintain Mobility
Ideology:
Vision & Values
Business
Goals
Understand
Customer Needs
Competitive
Advantages
Positioning
GAME
Plan
Research,
Measure &
Progress
Why do we exist?
What is our scope and
how do we achieve it?
What do we want to
achieve?
Top 5 Objectives/
BHAGs
For whom do we work
for?
Key customer needs,
tensions and voids to
be filled.
Our means:
Value Proposition,
Benefits,
Proofs (RTBs)
Adapt and evolve
plan:
Based on Customer
Feedbacks and
Competitive
Assessments
Our top 5 key activities:
Will leverage our
Competitive
Advantages, meet
Customer Needs and
help achieve Business
Goals
13Addictive-Strategy.com
Customers
Needs and Voids to be
filled
Competition
Offerings
Company
Offerings
Competitive
Advantages
Same Context, competing for same resources
Competitive
Weaknesses
Points
of Parity
Nice to have
Traps
Creates superior Performance through Competitive Advantages.
Makes right choices by Differentiation. Avoids Points of Parity, Traps or Nice to have.
• Competitive Advantages: compelling benefits that
make a company outperform competition. They
are valuable, rare & defendable.
• Competitive Weaknesses: important benefits that
your competition can offer and you cannot.
Should you match them?
• Point of parity: equal with your competition.
Playing on them will not help you win the war.
• Traps: can make you rival with competition for
un-necessaire features.
• Nice 2 have: red herrings. Offerings that you can
own, but customers do not need.
15Addictive-Strategy.com
Cost Leadership or Equity (Differentiation/ Specialization)
Choose one of the extreme. Avoid being stuck in the middle or being repositioned.
Cost
Leadership
Equity
Differentiation/ Specialization
• Business model: Low Margin, High Volumes
• Competitive advantages: Scale, Efficiency,
Standardization
• Business model: High Margin, Low Volumes
• Competitive advantages: Reputation,
Quality, Customization
Source: Michael Porter
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Resourced Based: searches the Competitive Advantages inside the Organization.
Search for Valuable, Scarce and Ownable alignments of Tangible and Intangible Assets.
Source: based on Garry Hamel
Resources:
• Look inside the Company for competitive advantages
• Have a great attention to intangible assets:
• Skills,
• Culture,
• Leadership
• Brand Equity and Reputation
• Find unique resource combinations and alignments
Key Criteria to spot Competitive Advantages:
• Valuable
• Scarce
• Ownable or costly/ difficult to imitate
Intangible
(Soft)
Tangible Assets
(Visible, Physical)
Culture
Leadership
Capacity to Innovate
Labour
Knowledge
Intellectual Property
Capital
Financial
Brand Equity
Reputation
Quality Perception
Trust
History
Land
Buildings
Plant
Equipment
Suppliers
Resources
The Process
Brand Architects Strategic Approach
19Addictive-Strategy.com
Do you have a Strategy?
You are in a Pitfall when:
- Strategy changes from one year to another, under the excuse of dynamism;
- Fall into gravitational attraction of competitor success;
- Believe is enough just being more efficient;
- Sell everything to everybody;
- Have a lower profitability vs. category.
You do not have any Strategy when:
- GM cannot say the Strategy in 30 simple worlds;
- There is no clear Activity Plan with resources allocation;
- Innovation Pipeline is empty;
- Frontline cannot tell the Value Proposition and the needs of key Customers;
20Addictive-Strategy.com
Addictive Strategy - Business Modeling, structured in 5 Modules
Company Culture -> Brand Architecture -> Business Creativity
-> Strategic Forces -> Brilliant Execution.
Brand Ladder:
- Emotional Benefits
- Rational Benefits &
Reason to Beliefs
- Attractivity (Personality,
Design)
Module 2. Build Positioning:
Brand Relationship Ladder
Vivid description of our Clients:
- Segmentation Diamond
- Demographics and Psychographics
- Habits
- Dreams, Tensions & Insights
Module 3. Clients & Customers Needs
Inspiring Tribe & Cult:
- Vision (Why?)
- Key Values
- Artefacts
Decision Making.
Module 1. Company Culture &
Decision Making
Positioning Statement:
- New Category & Value
Proposition, uniting Brand
Positioning with Clients
Insights.
Inspiring Goals/ BHAGs
Module 4. Create the Vision
- Understand current status
- Gap Analysis
- Key Strategies to grow
- Main Pillars
Module 5. Strategic Forces of
Growth
Deliver Value Proposition &
Communication Big Idea in:
- Key Touchpoints
- Activities
- Ecosystem/ Brand World
Module 6. Brilliant Execution
21Addictive-Strategy.com
www.Addictive-Strategy.com
1. Decision Making
(understand the customer judgment design)
3. Brand Relationship Ladder
(resonance, benefits, confidence, attractivity)
2. Company Ideology
(noble purpose and values that motivate people)
4. Propose a New Reality
(perceptual space, value proposition, ecosystem)
5. Drivers of Growth
(bridge the gap btw. positioning & current status)
7. Customer Journey & Key Touchpoints
(bring the brand to life in direct interactions)
6. Communication Big Idea
(communication essence)
8. Brand World
(design universe)
Divergent Executional Process
Convergent Strategic Process
22Addictive-Strategy.com
Decision Making
Understand the customer judgment design
Brand Relationship Ladder
Resonance, benefits, confidence, attractivity
Company Ideology
Noble purpose and values that motivate people
Clients & Insights
Segmentation diamond, pen portrait, dreams & tensions
Business Creativity & Propose a New Reality
Perceptual space, value proposition
Strategic Forces of Growth
Bridge the gap towards positioning
Situation Analysis
Picture the current reality
Communication Big Idea, Touchpoints, Brand World
Bring the brand to life in communication, direct interactions
23Addictive-Strategy.com
Sapiens Triune Brain*
Gave an disproportionate advantage. Downside: weights 2% - 3% over the body mass
consumes 25% of total energy when body is at rest.
Reptilian Brain (500 M years):
• Fear, Fight, Flight
• Is involved in aggression, dominance, territoriality and
ritual displays
• Controls vital functions (e.g. body temperature)
• Is reliable but rigid and compulsive
* Source: Paul D MacLean: The Triune Brain in Evolution
Mammalian/ Limbic System (150 M years):
• Responsible for Motivation and Emotions
• Records memories of behaviors that produced agreeable
and disagreeable feelings
• The place of Values judgements (that we make
unconsciously)
• Involved in feeding and parental behavior
Neocortex/ the new brain (3 M years):
• Responsible for language, abstraction, planning,
imagination and perception
• The place of learning and conscious decisions
24Addictive-Strategy.com
Cooperate through Storytelling and Common Beliefs & Myths*
Difficulty lies in convincing people to out-pass their natural risk aversion.
A mix of Fear Antagonists, Love Myths and Rational Rules.
Fear
Antagonists:
Common Enemies,
Risk Aversion,
Uncertainty
Love
Myths:
Dreams,
Scope, Values,
Beliefs
Rational
Rules:
Identification,
Laws, Codes
* Source: Yuval Noah Harari:
Sapiens, A brief history of humankind
Decision Making
Understand the customer judgment design
Brand Relationship Ladder
Resonance, benefits, confidence, attractivity
Company Ideology
Module 1.2. Noble purpose and values that motivate people
Clients & Insights
Segmentation diamond, pen portrait, dreams & tensions
Business Creativity & Propose a New Reality
Perceptual space, value proposition
Strategic Forces of Growth
Bridge the gap towards positioning
Situation Analysis
Picture the current reality
Communication Big Idea, Touchpoints, Brand World
Bring the brand to life in communication, direct interactions
27Addictive-Strategy.com
Building Your Company Vision*
Define Ideology (Why, Values) and Envisioned Future (Big Dream, Great Goals).
Are translated into actions through Strategies.
* James C Collins; Jerry I Porras – Build to Last
Core Ideology (why?): Values & Noble Purpose. This is fixed and should never change:
• Defines what the Company stands for (Values), and why does it exists (Purpose)
• Core Values guides principles on which company navigates.
• Core Purpose (WHY) highlight fundamental reason of being.
Envisioned Future:
• Describes what is the effect of company existence on the people around. Has the role to energize the
organization. It has a very long term outlook (10 to 30 years)
• Big Goals (big, hairy, audacious goals, BHAGs) on how do you measure the success; This is your Mount Everest
• Vivid Description, a picture/ vivid description of how the world would change, after the Goal is completed.
Strategies (How):
• These are adapting to the world and change across time.
• They bridge the gap from present to the Envisioned Future.
• Usually, have a limited 3 to 5 years span.
28Addictive-Strategy.com
Measuring the Company Culture
Organizational Culture Inventory* - The Circumplex.
*Human Synergistics
Constructive Style (the desired management style that brings
long term success):
• Achievement
• Self-Actualizing
• Humanistic – Encouraging
• Affiliate
Passive/ Defensive Style
(inefficient government institutions):
• Avoidance
• Dependent
• Conventional
• Approval
Aggressive/ Defensive Style (predominant in dysfunctional silos-
oriented organizations):
• Oppositional
• Power
• Internal Competitive
• Perfectionistic
Decision Making
Understand the customer judgment design
Brand Relationship Ladder
Module 2. Resonance, benefits, confidence, attractivity
Company Ideology
Noble purpose and values that motivate people
Clients & Insights
Segmentation diamond, pen portrait, dreams & tensions
Business Creativity & Propose a New Reality
Perceptual space, value proposition
Strategic Forces of Growth
Bridge the gap towards positioning
Situation Analysis
Picture the current reality
Communication Big Idea, Touchpoints, Brand World
Bring the brand to life in communication, direct interactions
30Addictive-Strategy.com
Customer tension
1) Growth
2) Contribution
3) Love & connection
4) Importance
5) Diversity & novelty
6) Safety
Attractivity, seduction & identification:
- Brand world: design & physical appearance
- Personality & vulnerabilities
- Narcissist identification: similarities - what I am, or inspiration - what
I want to become (my best self).
Gains confidence, shows advantages & evidences that lowers the
customer risk:
- Presents rational benefits
- Shows attributes & reason to believe (RTBs)
- Social pressure
Makes customers feel well, creates positive connections:
- Emotional benefits, experiences and memories
Resonance, our tribe ideology that fuels motivation:
- Noble purpose
- Common values
Building a Relationship Ladder
People fall in love with our brand, exactly like building a relationship with someone.
Attractivity -> Confidence -> Positive Emotions -> Resonance
© Mihai Bonca I Brand Architects
31Addictive-Strategy.com
For: customer psychographic description.
That: condensed tension or insight in current reality.
My brand represents: the perceptual space (emotions, thoughts, or comportments) that
can build a new reality, with the potential of creating a new market or category (a new
room in the customer mind’s palace). Becomes the frame of reference.
And has the superpower to: this is how the brand starts design the perceptual space, in a
unique and different way, attracting people into the new reality; should be inspirational
both internally and externally; linked ultimately to noble purpose. It is the main point of
difference.
Because: the benefits offered by the brand ecosystem which improves customer life.
Thanks to: the attributes, evidences and elements that give confidence and attract
customers; important to design the category and its ecosystem.
Unlike: what are you running away of; the competition current perceptual space; the
Kryptonite that will make loose your superpower and disappoint the customers.
Target
Problem Statement
Category
Value Proposition
Differentiation
Benefits
RTBs & Design Ecosystem
Propose a New Reality in a Positioning Statement
Design a new category & perceptual space
Adapted By: Mihai Bonca I Brand Architects
Decision Making
Understand the customer judgment design
Brand Relationship Ladder
Resonance, benefits, confidence, attractivity
Company Ideology
Noble purpose and values that motivate people
Clients & Insights
Module 3. Segmentation diamond, pen portrait, dreams & tensions
Business Creativity & Propose a New Reality
Perceptual space, value proposition
Strategic Forces of Growth
Bridge the gap towards positioning
Situation Analysis
Picture the current reality
Communication Big Idea, Touchpoints, Brand World
Bring the brand to life in communication, direct interactions
33Addictive-Strategy.com
Understand Target Groups
Main target
The ones that believe in what we
believe, are loyal to our brand
Overspill
Transactional relationship,
shouldn’t be targeted in
communication; cannot be
loyalize
Best target
Key Opinion Leaders, the
ambassadors that spread our
message
Best Target:
The most respected members of our customer tribe, which opinion is vital to validate
the brand choices for the entire community.
Main Target:
Resonates with our values and noble purpose; accountable for the largest stake in our
current profit; our main strategy is build for them.
Volume Overspill:
They buy our brand just because they see the others; can be numerous, attracted by
benefits, do not share same values; therefore, cannot be loyal:
34Addictive-Strategy.com
Demographics.
• Name
• Description (age, social state)
• Where does he lives and what he is doing?
Life.
• How is his life?
• What is he thinking about?
Values & beliefs.
• What are his fundamental values and beliefs?
Happy moments & big successes.
• What are the everyday moments that makes him happy?
• What is making him go for another week?
• What are his big achievements that make him proud?
Dreams.
• What are his dreams? What does he love?
Tensions.
• What are his fears?
• What is he running from?
Relationship with others.
• Who are the people that he respects?
• How is he influenced by social pressure?
Pen Portrait
It’s about Dreams and Tensions, not Demography
Decision Making
Understand the customer judgment design
Brand Relationship Ladder
Resonance, benefits, confidence, attractivity
Company Ideology
Noble purpose and values that motivate people
Clients & Insights
Segmentation diamond, pen portrait, dreams & tensions
Business Creativity & Propose a New Reality
Module 4. Perceptual space, value proposition
Strategic Forces of Growth
Bridge the gap towards positioning
Situation Analysis
Picture the current reality
Communication Big Idea, Touchpoints, Brand World
Bring the brand to life in communication, direct interactions
36Addictive-Strategy.com
Kind of People For: customer psychographic description,
Tension, Needs, Voids That: condensed tension or insight in current reality; their main void to be filled,
Mental Space My brand represents: Category/ the perceptual space (emotions, thoughts, or comportments) that can
build a new reality, with the potential of creating a new market or category (a new room in the customer
palace),
Value Proposition And has the superpower to: this is how the brand starts design the perceptual space, in a unique and
different way, attracting people into the new reality; should be inspirational both internally and externally;
linked ultimately to noble purpose. Typology of power: positional (legitimate, reward, coercive,
resources); personal (referent, expert, informational, connection).
Benefits Because: the benefits offered by the brand ecosystem which improves customer life,
Reasons to Believes: Thanks to: the attributes, evidences and elements that give confidence and attract customers; important
to design the category and its ecosystem,
Differentiation Unlike: what are you running away of; the competition current perceptual space; the Kryptonite that will
make loose your superpower and disappoint the customers.
Brand Architects’ Positioning Statement
Improving the customer reality by designing a new category & perceptual space
37Addictive-Strategy.com
Addictive strategy opens categories and market opportunities
Design a new perceptual space, build a superpower, immerse consumers into an ecosystem, create a brand
world in touchpoints.
Addictive:
• Authentic: is an inside-out process, that from company ideology & brand DNA, discovered from inside.
• Disruptive: perceives the reality through a new lens; building the company philosophy
• Design-able: help build and brand world/ ecosystem that inspires product features, benefits and touchpoints experience
• Inspirational: creates experiences and emotional
• Campaignable: inspires actions and communication under the same big idea, for a long time.
• Trust-able: has the ability to generate customer confidence.
38Addictive-Strategy.com
Attractivity:
- Personality: a not conformist rebel,
- Narcissist Identification: I would like to be like these ambassadors,
- Brand world: dynamic package, always in the right places, exceptional
activations.
Gains confidence:
- Rational benefits: gives energy, vitalize body and mind,
- RTBs: taurine, glucuronolactone, B vitamins,
- Social pressure: lots of loyal red bull maverick ambassadors.
Makes customers feel well:
- Emotional benefits: encourage overcome barriers;
great taste; feel good factor,
Resonance (our tribe ideology):
- Noble purpose: boost your spirit to try new things and enjoy life to the full,
- Values: freedom, break the rules.
Customer tension, needs &
voids to be filled.
1) Growth
2) Contribution
3) Love & connection
4) Importance
5) Diversity & novelty
6) Safety
Relationship Ladder
39Addictive-Strategy.com
For: trendsetters in love with adrenaline rush,
That: want to try new things and enjoy life to the full,
Red Bull: is the spirit booster,
And has the superpower to: encourage people overcome inner barriers.
Because: is the drink that helps the greatest mavericks push their boundaries,
Thanks to:
• World’s most courageous ambassadors,
• Rebellious personality,
• Iconic package, logotype and activations,
• Always in the adrenaline hot-spots (extreme sports, clubs),
• The intrinsic qualities that vitalize mind and body,
• Great taste.
Unlike: Other energy drinks that lack boldness and became commodities.
Kind of People
Tension or Void
Mental Space
Value Proposition
Differentiation
Benefits
RTBs &
Brand world
Positioning Statement
40Addictive-Strategy.com
1) Safety
2) Diversity & novelty
3) Importance
4) Love & connection
5) Contribution
6) Growth
Attractivity:
- Personality: tender, vulnerable, attentive, playful,
- Narcissist identification: with brand sweet personality,
- Brand world: powerful iconography (the mauve cow, Alps).
Gains confidence:
- Rational benefits: fine chocolate quality,
- RTBs: alpine provenience, German name, milk related name,
- Social Pressure: If Germans buy it, should be something good; Powerful media
presence, Shelf Space.
Makes customers feel well:
- Emotional benefits: offering a fine chocolate spreads love and tenderness to
the dear ones; feel good factor (due to endorphins),
Resonance (our tribe ideology):
- Noble purpose: encourage people express sentiments more easily,
- Values: love, quality, courage.
Relationship Ladder
Customer tension, needs &
voids to be filled.
41Addictive-Strategy.com
Positioning Statement
For: the young at heart professionals,
That: want to offer affection to the dear ones,
Milka: represents a shared moment of tenderness,
And has the superpower to: encourage to express sentiments more easily,
Because: makes one feel courageous by offering a fine quality chocolate,
Thanks to:
• Mauve cow
• Re-sealable package
• German provenience (Alps)
• 111 years of tradition
• Name (Milka),
Unlike: Other chocolate tablets that lack sentiments.
Kind of People
Tension or Void
Mental Space
Value Proposition
Differentiation
Benefits
RTBs &
Brand world
42Addictive-Strategy.com
Attractivity:
- Personality: a listening kind of company,
- Narcissist identification: become part of the Orange world, where everything is so easy
for any customers,
- Brand world: orange color, optimistic music, positive & peaceful people, wellbeing.
Gain confidence:
- Rational benefits: great offers, care for the customer,
- RTBs: 4G, direct experience in store & excellent customer care,
- Social pressure: top telecom provider, lots of friends that are satisfied.
Makes customers feel well:
- Emotional benefits: customers feel that communication never been so easy before,
Technology is better with a human touch.
Resonance (our tribe ideology):
- Noble purpose: Help people connect through their emotions,
- Values: Optimism, openness, human centric, really listening.
Building a Relationship Ladder
1) Growth
2) Contribution
3) Love & connection
4) Importance
5) Diversity & novelty
6) Safety
Customer tension, needs &
voids to be filled.
43Addictive-Strategy.com
For: clients in need for genuine relations,
That: believe technology should be human centric,
Orange: is the opened and friendly communication partner,
And has the superpower to: connect people through their emotions.
Because: communication never been so easy before,
Thanks to:
• Really listening,
• Understand customers,
• Offer excellent customer care,
• Up to date technology: 4G network,
Orange is recognized for: friendly design & touchpoints experience,
Unlike: Other providers that move the weight of responsibility to their customers.
Kind of People
Tensions or Voids
Mental Space
Value Proposition
Differentiation
Benefits
Why to believe?
Positioning Statement
Brand World
44Addictive-Strategy.com
1) Safety
2) Diversity & novelty
3) Importance
4) Love & connection
5) Contribution
6) Growth
ATRACTIVITY (First level of Identification):
- Personality: young, masculine, successful, energetic, aggressive, adventurous
- Narcissist identification: alpha people are driving a BMW
- Brand world: dramatic appearance, fluid, sport stylish,
Gains confidence:
- Rational benefits: best driving machine
- RTBs: state of the art German engineering: engines, gears, traction, xDrive,
horse power, acceleration.
- Social pressure: the successful ones drive a BMW
Makes customers feel well:
- Emotional Benefits: ensures a high driving pleasure, makes you feel like an
alpha person, improves self esteem
Resonance (our tribe ideology):
- Noble purpose: the third lane car that empowers the ones who are riding
towards success
- Values: technological excellence, dynamism, excitement, offers high control
Relationship Ladder
Customer tension, needs &
voids to be filled.
45Addictive-Strategy.com
For: the alpha people who are racing towards success,
That: want to have thrill and fun along their journey,
BMW: is the sport stylish third lane car,
And has the superpower to: ensure a high riding excitement.
Because: Is the best driving machine,
Thanks to:
• State of the art German engineering: engines, gears, traction, xDrive, horse power,
acceleration 0-100,
• Dynamism, excitement, high handling control,
• Identification with successful people that are driving a BMW,
Unlike: Other cars that just pretend to have a masculine and sportive behavior, lacking
the joy or inner power.
Kind of People
Tension or Void
Mental Space
Value Proposition
Differentiation
Benefits
RTBs &
Brand world
Positioning Statement
46Addictive-Strategy.com
Attractivity:
- Personality: professional, rigorous
Gain confidence:
- Rational benefits: reassurance, wide acceptance and usability
- RTBs: technology and innovations
- Social pressure: connect consumers, businesses, banks and
governments in more than 200 countries and territories
worldwide.
Makes customers feel well:
- Emotional benefits: ? (engage, experience and collaborate
with a broad range of partners)
Resonance (our tribe ideology):
- Noble purpose: enable consumers, businesses, banks and
governments to use digital currency
- Values: (Payments), Innovation, Partnership
Building a Relationship Ladder
Customer tension:
- Safety
Attractivity:
- Personality: friendly, caring, joyful
Gain confidence:
- Rational benefits: safe, simple and smart payment
- RTBs: technology and expertise
- Social pressure: adopted and endorsed by World’s banks
Makes customers feel well:
- Emotional benefits: empower customers have their priceless
moments, everyday, everywhere
Resonance (our tribe ideology):
- Noble purpose: Build a world beyond cash
- Values: Trust, Partnership, Agility, Initiative
Customer tension:
- Love & Connection
47Addictive-Strategy.com
Recap
Main Brand Positioning Tools
48Addictive-Strategy.com
Understand Target Groups
Main target
The ones that believe in what we
believe, are loyal to our brand
Overspill
Transactional relationship,
shouldn’t be targeted in
communication; cannot be
loyalize
Best target
Key Opinion Leaders, the
ambassadors that spread our
message
Best Target:
The most respected members of our customer tribe, which opinion is vital to validate
the brand choices for the entire community.
Main Target:
Resonates with our values and noble purpose; accountable for the largest stake in our
current profit; our main strategy is build for them.
Volume Overspill:
They buy our brand just because they see the others; can be numerous, attracted by
benefits, do not share same values; therefore, cannot be loyal:
49Addictive-Strategy.com
Demographics.
• Name
• Description (age, social state)
• Where does he lives and what he is doing?
Life.
• How is his life?
• What is he thinking about?
Values & beliefs.
• What are his fundamental values and beliefs?
Happy moments & big successes.
• What are the everyday moments that makes him happy?
• What is making him go for another week?
• What are his big achievements that make him proud?
Dreams.
• What are his dreams? What does he love?
Tensions.
• What are his fears?
• What is he running from?
Relationship with others.
• Who are the people that he respects?
• How is he influenced by social pressure?
Pen Portrait
It’s about Dreams and Tensions, not Demography
Adapted By: Mihai Bonca I Brand Architects
50Addictive-Strategy.com
Customer tension, needs
& voids to be filled
1) Growth
2) Contribution
3) Love & connection
4) Importance
5) Diversity & novelty
6) Safety
Brand Architects’ Relationship Ladder
Ideology -> Emotional Positive Connections -> Gain Confidence -> Seduction
Resonance, our tribe ideology that fuels motivation:
- Noble purpose
- Common values
- Leadership styles (authoritative, affiliative, democratic,
coaching, coercive, pacesetting) & Motivation (acquire, bond,
comprehend, defend)
Makes customers feel well, creates positive connections:
- Emotional benefits, experiences and memories
Gains confidence, shows advantages & evidences that lowers the
customer risk:
- Presents rational benefits
- Shows attributes & reason to beliefs (RTBs)
- Social pressure
Attractivity, seduction & identification:
- Design & physical appearance
- Personality & vulnerabilities
- Narcissist identification: similarities (what I am), or inspiration
(what I want to become).
51Addictive-Strategy.com
For: customer psychographic description.
That: condensed tension or insight in current reality.
My brand represents: the perceptual space (emotions, thoughts, or comportments) that
can build a new reality, with the potential of creating a new market or category (a new
room in the customer mind’s palace). Becomes the frame of reference.
And has the superpower to: this is how the brand starts design the perceptual space, in a
unique and different way, attracting people into the new reality; should be inspirational
both internally and externally; linked ultimately to noble purpose. It is the main point of
difference.
Because: the benefits offered by the brand ecosystem which improves customer life.
Thanks to: the attributes, evidences and elements that give confidence and attract
customers; important to design the category and its ecosystem.
Unlike: what are you running away of; the competition current perceptual space; the
Kryptonite that will make loose your superpower and disappoint the customers.
Target
Problem Statement
Category
Value Proposition
Differentiation
Benefits
RTBs & Design Ecosystem
Propose a New Reality in a Positioning Statement
Design a new category & perceptual space
Adapted By: Mihai Bonca I Brand Architects
53Addictive-Strategy.com
Books & References
Sources of inspiration
Company Ideology
Simon Sinek
Start with Why
Collins & Porras
Build to Last.
Business / Brand Strategy
Michael E Porter.
Competitive Strategy
Ramadan/ Peterson/
Lochhead/ Maney.
Play Bigger.
Mihai Bonca
Mihai.Bonca@brandarchitects.ro
0725.347.475
www.Addictive-Strategy.com
Great results start from a
different mindset.

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Mihai Bonca - Masterclass Brand strategy - Business Focus Iasi

  • 1. 1Addictive-Strategy.com Master Class Brand Strategy Great Results Strat from a Different Mindset u Mihai Bonca Business Focus Iasi 28 March 2018
  • 2. Credentials 15 years of Marketing expertize
  • 3. 3Addictive-Strategy.com Mihai Bonca CV & Main Achievements Brand Management (2003 - 2012) Ursus Breweries/ SABMiller 1) Timisoreana became undisputed market leader in 2008 2) Ciucas tackled the 2nd market position by volume 3) Ursus is one of the strongest Romanian brands, and leading brand in local premium. Marketing Director (2012 - 2015): Bergenbier SA/ Molson Coors 1) Bergenbier SA, the single company to increase its entire portfolio, between 2012 – 2015 2) Bergenbier brand had the best market share increase 3) Beck’s, Stella Artois recovered after 5 years of decline 4) Staropramen has one of the best evolution, from a difficult launch. to a great development 5) Noroc returned to growth, for a 3rd place in economy segment Group Marketing Director (2015): eMAG/ Naspers 1) Nurturing the eMAG brand strategy and communication direction for the 4 countries 2) Marketing department organization in group and local structure 3) “eMAG Marketing Way”, development of marketing tools (activity planning, first proposal of commercial strategy, coop strategy) 4) Start Poland integration
  • 4. 4Addictive-Strategy.com ` Brand Architects from September 2015 Positioning development, brand strategy, communication strategy, employer branding Employer branding; Communication pitch National Football Team; Cup of Romania strategy Brand positioning; Marketing strategy training Brand positioning & Communication development Brand positioning; Communication pitch Marketing strategy Training Brand positioning & Communication development Brand positioning & Communication development Brand positioning;
  • 5. 5Addictive-Strategy.com 2005 - Timisoreana: Silver EFFIE (Promotions FMCG) 2007 - Timisoreana: EFFIE: Bronze Effie (Alcoholic drinks); Bronze Effie (Promotions FMCG) 2008 - Timisoreana: Grand Effie (All categories); Gold Effie (Alcoholic drinks); Silver Effie (Sustained success); SABMiller Awards: Global best mainstream brand 2009 – Timisoreana: SABMiller Awards: (Best global brand development; Best global mainstream brand; Best European mainstream brand); Bronze EFFIE (Alcoholic drinks); Internetics (Best online FMCG brand) 2010 - Timisoreana: Grand EFFIE (All categories); Gold EFFIE (Alcoholic drinks); Portoroz (Silver medal for non-TV campaigns, Cup of Romania) 2011- Ursus: Silver Effie (Alcoholic drinks) 2013 - Bergenbier: Silver Effie (Alcoholic drinks); Internetics (Gold FMCG interactive campaigns) 2015 - Bergenbier: Bronze Effie (Alcoholic drinks); 2015 – eMAG Bronze Effie (Retail); 2015 –Brand Architects: FRF– National Football Team: Gold Effie 3 Gold prizes @ Internetics (Best viral; Best online PR project; Best art, culture and entertainment project). Silver prize @ Romanian PR Awards Mihai Bonca 25 MARCOM Awards and counting
  • 6. What is Strategy? The art of achieving superior performance
  • 7. 8Addictive-Strategy.com Strategy The Art of Creating Superior Performance Offers sound executive judgement: • Increases chances to succeed: more than one solution that is good enough. Discriminates and does not look for perfection. • Helps decision making: Defends your solutions with arguments and data. Debates this options. Articulate decisions against other people solutions. • Helps avoid minefields: an infinite amount of solutions that are not good enough. • Match the best strategy: for the firm with what the management can understand and do. Source: Thomas Powell Does not offer: • A perfect solution (guaranteed to do that)
  • 8. 9Addictive-Strategy.com Principles of Competitive Exclusions Competition for identical resources Two spices can’t coexist if they occupy the same niche/ compete for the same resources (Gause/ Darwin): • No two species can coexist that make their living in the identical way. • When any pair of species competed for some essential resource, sooner or later one displaced the other. • In the absence of counterbalancing forces that could maintain a stable equilibrium by giving each species an advantage in its own territory, only one of any pair survived • At any given time, thousands of species are becoming extinct and thousands more are emerging. *Source: The Origin of Strategy, Bruce Henderson, HBR nov- dec 1989
  • 9. 10Addictive-Strategy.com Principles of Competitive Exclusions Competition for identical resources *Source: The Origin of Strategy, Bruce Henderson, HBR nov- dec 1989 Business world operates the same as animal kingdom: • Two enterprises that deal in the same way, in the same territory for the same clients, under the same conditions, cannot coexist. • The essence of the contest: lies in extending the boundary of the advantage of your differences • Competitors seek to differentiate themselves through competitive advantage. Strategy: • Understand the complex web of natural competition • Searches for a plan of action that will create competitive advantage and compound it • It is all-encompassing in its commitment. *Global MS of smartphones by operating systems (Statistia)
  • 10. 11Addictive-Strategy.com Key Strategy Principles Strategy is the art of generals (”strategos” = general) Focus on objectives: • Objective: direct every operation towards a clearly defined, decisive objective • Economy of Force: allocate minimum combat power to secondary efforts • Unity of Command: for every objective, ensure unity of effort under one commander • Simplicity: prepare clear, uncomplicated plans to ensure understanding Source: Wiki: United States Army Field Principles Preserve Mobility: • Maneuver: place the enemy in a disadvantageous position through the flexible application of combat power • Security: never permit the enemy to acquire an unexpected advantage Control de Engagement: • Offensive: seize, retain, and exploit the initiative • Mass: concentrate combat power at the decisive place and time • Surprise: strike the enemy at a time, at a place, or in a manner for which he is unprepared
  • 11. 12Addictive-Strategy.com Company or Brand Strategy Clear Objectives, Control de Engagement, Maintain Mobility Ideology: Vision & Values Business Goals Understand Customer Needs Competitive Advantages Positioning GAME Plan Research, Measure & Progress Why do we exist? What is our scope and how do we achieve it? What do we want to achieve? Top 5 Objectives/ BHAGs For whom do we work for? Key customer needs, tensions and voids to be filled. Our means: Value Proposition, Benefits, Proofs (RTBs) Adapt and evolve plan: Based on Customer Feedbacks and Competitive Assessments Our top 5 key activities: Will leverage our Competitive Advantages, meet Customer Needs and help achieve Business Goals
  • 12. 13Addictive-Strategy.com Customers Needs and Voids to be filled Competition Offerings Company Offerings Competitive Advantages Same Context, competing for same resources Competitive Weaknesses Points of Parity Nice to have Traps Creates superior Performance through Competitive Advantages. Makes right choices by Differentiation. Avoids Points of Parity, Traps or Nice to have. • Competitive Advantages: compelling benefits that make a company outperform competition. They are valuable, rare & defendable. • Competitive Weaknesses: important benefits that your competition can offer and you cannot. Should you match them? • Point of parity: equal with your competition. Playing on them will not help you win the war. • Traps: can make you rival with competition for un-necessaire features. • Nice 2 have: red herrings. Offerings that you can own, but customers do not need.
  • 13. 15Addictive-Strategy.com Cost Leadership or Equity (Differentiation/ Specialization) Choose one of the extreme. Avoid being stuck in the middle or being repositioned. Cost Leadership Equity Differentiation/ Specialization • Business model: Low Margin, High Volumes • Competitive advantages: Scale, Efficiency, Standardization • Business model: High Margin, Low Volumes • Competitive advantages: Reputation, Quality, Customization Source: Michael Porter
  • 14. 17Addictive-Strategy.com Resourced Based: searches the Competitive Advantages inside the Organization. Search for Valuable, Scarce and Ownable alignments of Tangible and Intangible Assets. Source: based on Garry Hamel Resources: • Look inside the Company for competitive advantages • Have a great attention to intangible assets: • Skills, • Culture, • Leadership • Brand Equity and Reputation • Find unique resource combinations and alignments Key Criteria to spot Competitive Advantages: • Valuable • Scarce • Ownable or costly/ difficult to imitate Intangible (Soft) Tangible Assets (Visible, Physical) Culture Leadership Capacity to Innovate Labour Knowledge Intellectual Property Capital Financial Brand Equity Reputation Quality Perception Trust History Land Buildings Plant Equipment Suppliers Resources
  • 15. The Process Brand Architects Strategic Approach
  • 16. 19Addictive-Strategy.com Do you have a Strategy? You are in a Pitfall when: - Strategy changes from one year to another, under the excuse of dynamism; - Fall into gravitational attraction of competitor success; - Believe is enough just being more efficient; - Sell everything to everybody; - Have a lower profitability vs. category. You do not have any Strategy when: - GM cannot say the Strategy in 30 simple worlds; - There is no clear Activity Plan with resources allocation; - Innovation Pipeline is empty; - Frontline cannot tell the Value Proposition and the needs of key Customers;
  • 17. 20Addictive-Strategy.com Addictive Strategy - Business Modeling, structured in 5 Modules Company Culture -> Brand Architecture -> Business Creativity -> Strategic Forces -> Brilliant Execution. Brand Ladder: - Emotional Benefits - Rational Benefits & Reason to Beliefs - Attractivity (Personality, Design) Module 2. Build Positioning: Brand Relationship Ladder Vivid description of our Clients: - Segmentation Diamond - Demographics and Psychographics - Habits - Dreams, Tensions & Insights Module 3. Clients & Customers Needs Inspiring Tribe & Cult: - Vision (Why?) - Key Values - Artefacts Decision Making. Module 1. Company Culture & Decision Making Positioning Statement: - New Category & Value Proposition, uniting Brand Positioning with Clients Insights. Inspiring Goals/ BHAGs Module 4. Create the Vision - Understand current status - Gap Analysis - Key Strategies to grow - Main Pillars Module 5. Strategic Forces of Growth Deliver Value Proposition & Communication Big Idea in: - Key Touchpoints - Activities - Ecosystem/ Brand World Module 6. Brilliant Execution
  • 18. 21Addictive-Strategy.com www.Addictive-Strategy.com 1. Decision Making (understand the customer judgment design) 3. Brand Relationship Ladder (resonance, benefits, confidence, attractivity) 2. Company Ideology (noble purpose and values that motivate people) 4. Propose a New Reality (perceptual space, value proposition, ecosystem) 5. Drivers of Growth (bridge the gap btw. positioning & current status) 7. Customer Journey & Key Touchpoints (bring the brand to life in direct interactions) 6. Communication Big Idea (communication essence) 8. Brand World (design universe) Divergent Executional Process Convergent Strategic Process
  • 19. 22Addictive-Strategy.com Decision Making Understand the customer judgment design Brand Relationship Ladder Resonance, benefits, confidence, attractivity Company Ideology Noble purpose and values that motivate people Clients & Insights Segmentation diamond, pen portrait, dreams & tensions Business Creativity & Propose a New Reality Perceptual space, value proposition Strategic Forces of Growth Bridge the gap towards positioning Situation Analysis Picture the current reality Communication Big Idea, Touchpoints, Brand World Bring the brand to life in communication, direct interactions
  • 20. 23Addictive-Strategy.com Sapiens Triune Brain* Gave an disproportionate advantage. Downside: weights 2% - 3% over the body mass consumes 25% of total energy when body is at rest. Reptilian Brain (500 M years): • Fear, Fight, Flight • Is involved in aggression, dominance, territoriality and ritual displays • Controls vital functions (e.g. body temperature) • Is reliable but rigid and compulsive * Source: Paul D MacLean: The Triune Brain in Evolution Mammalian/ Limbic System (150 M years): • Responsible for Motivation and Emotions • Records memories of behaviors that produced agreeable and disagreeable feelings • The place of Values judgements (that we make unconsciously) • Involved in feeding and parental behavior Neocortex/ the new brain (3 M years): • Responsible for language, abstraction, planning, imagination and perception • The place of learning and conscious decisions
  • 21. 24Addictive-Strategy.com Cooperate through Storytelling and Common Beliefs & Myths* Difficulty lies in convincing people to out-pass their natural risk aversion. A mix of Fear Antagonists, Love Myths and Rational Rules. Fear Antagonists: Common Enemies, Risk Aversion, Uncertainty Love Myths: Dreams, Scope, Values, Beliefs Rational Rules: Identification, Laws, Codes * Source: Yuval Noah Harari: Sapiens, A brief history of humankind
  • 22. Decision Making Understand the customer judgment design Brand Relationship Ladder Resonance, benefits, confidence, attractivity Company Ideology Module 1.2. Noble purpose and values that motivate people Clients & Insights Segmentation diamond, pen portrait, dreams & tensions Business Creativity & Propose a New Reality Perceptual space, value proposition Strategic Forces of Growth Bridge the gap towards positioning Situation Analysis Picture the current reality Communication Big Idea, Touchpoints, Brand World Bring the brand to life in communication, direct interactions
  • 23. 27Addictive-Strategy.com Building Your Company Vision* Define Ideology (Why, Values) and Envisioned Future (Big Dream, Great Goals). Are translated into actions through Strategies. * James C Collins; Jerry I Porras – Build to Last Core Ideology (why?): Values & Noble Purpose. This is fixed and should never change: • Defines what the Company stands for (Values), and why does it exists (Purpose) • Core Values guides principles on which company navigates. • Core Purpose (WHY) highlight fundamental reason of being. Envisioned Future: • Describes what is the effect of company existence on the people around. Has the role to energize the organization. It has a very long term outlook (10 to 30 years) • Big Goals (big, hairy, audacious goals, BHAGs) on how do you measure the success; This is your Mount Everest • Vivid Description, a picture/ vivid description of how the world would change, after the Goal is completed. Strategies (How): • These are adapting to the world and change across time. • They bridge the gap from present to the Envisioned Future. • Usually, have a limited 3 to 5 years span.
  • 24. 28Addictive-Strategy.com Measuring the Company Culture Organizational Culture Inventory* - The Circumplex. *Human Synergistics Constructive Style (the desired management style that brings long term success): • Achievement • Self-Actualizing • Humanistic – Encouraging • Affiliate Passive/ Defensive Style (inefficient government institutions): • Avoidance • Dependent • Conventional • Approval Aggressive/ Defensive Style (predominant in dysfunctional silos- oriented organizations): • Oppositional • Power • Internal Competitive • Perfectionistic
  • 25. Decision Making Understand the customer judgment design Brand Relationship Ladder Module 2. Resonance, benefits, confidence, attractivity Company Ideology Noble purpose and values that motivate people Clients & Insights Segmentation diamond, pen portrait, dreams & tensions Business Creativity & Propose a New Reality Perceptual space, value proposition Strategic Forces of Growth Bridge the gap towards positioning Situation Analysis Picture the current reality Communication Big Idea, Touchpoints, Brand World Bring the brand to life in communication, direct interactions
  • 26. 30Addictive-Strategy.com Customer tension 1) Growth 2) Contribution 3) Love & connection 4) Importance 5) Diversity & novelty 6) Safety Attractivity, seduction & identification: - Brand world: design & physical appearance - Personality & vulnerabilities - Narcissist identification: similarities - what I am, or inspiration - what I want to become (my best self). Gains confidence, shows advantages & evidences that lowers the customer risk: - Presents rational benefits - Shows attributes & reason to believe (RTBs) - Social pressure Makes customers feel well, creates positive connections: - Emotional benefits, experiences and memories Resonance, our tribe ideology that fuels motivation: - Noble purpose - Common values Building a Relationship Ladder People fall in love with our brand, exactly like building a relationship with someone. Attractivity -> Confidence -> Positive Emotions -> Resonance © Mihai Bonca I Brand Architects
  • 27. 31Addictive-Strategy.com For: customer psychographic description. That: condensed tension or insight in current reality. My brand represents: the perceptual space (emotions, thoughts, or comportments) that can build a new reality, with the potential of creating a new market or category (a new room in the customer mind’s palace). Becomes the frame of reference. And has the superpower to: this is how the brand starts design the perceptual space, in a unique and different way, attracting people into the new reality; should be inspirational both internally and externally; linked ultimately to noble purpose. It is the main point of difference. Because: the benefits offered by the brand ecosystem which improves customer life. Thanks to: the attributes, evidences and elements that give confidence and attract customers; important to design the category and its ecosystem. Unlike: what are you running away of; the competition current perceptual space; the Kryptonite that will make loose your superpower and disappoint the customers. Target Problem Statement Category Value Proposition Differentiation Benefits RTBs & Design Ecosystem Propose a New Reality in a Positioning Statement Design a new category & perceptual space Adapted By: Mihai Bonca I Brand Architects
  • 28. Decision Making Understand the customer judgment design Brand Relationship Ladder Resonance, benefits, confidence, attractivity Company Ideology Noble purpose and values that motivate people Clients & Insights Module 3. Segmentation diamond, pen portrait, dreams & tensions Business Creativity & Propose a New Reality Perceptual space, value proposition Strategic Forces of Growth Bridge the gap towards positioning Situation Analysis Picture the current reality Communication Big Idea, Touchpoints, Brand World Bring the brand to life in communication, direct interactions
  • 29. 33Addictive-Strategy.com Understand Target Groups Main target The ones that believe in what we believe, are loyal to our brand Overspill Transactional relationship, shouldn’t be targeted in communication; cannot be loyalize Best target Key Opinion Leaders, the ambassadors that spread our message Best Target: The most respected members of our customer tribe, which opinion is vital to validate the brand choices for the entire community. Main Target: Resonates with our values and noble purpose; accountable for the largest stake in our current profit; our main strategy is build for them. Volume Overspill: They buy our brand just because they see the others; can be numerous, attracted by benefits, do not share same values; therefore, cannot be loyal:
  • 30. 34Addictive-Strategy.com Demographics. • Name • Description (age, social state) • Where does he lives and what he is doing? Life. • How is his life? • What is he thinking about? Values & beliefs. • What are his fundamental values and beliefs? Happy moments & big successes. • What are the everyday moments that makes him happy? • What is making him go for another week? • What are his big achievements that make him proud? Dreams. • What are his dreams? What does he love? Tensions. • What are his fears? • What is he running from? Relationship with others. • Who are the people that he respects? • How is he influenced by social pressure? Pen Portrait It’s about Dreams and Tensions, not Demography
  • 31. Decision Making Understand the customer judgment design Brand Relationship Ladder Resonance, benefits, confidence, attractivity Company Ideology Noble purpose and values that motivate people Clients & Insights Segmentation diamond, pen portrait, dreams & tensions Business Creativity & Propose a New Reality Module 4. Perceptual space, value proposition Strategic Forces of Growth Bridge the gap towards positioning Situation Analysis Picture the current reality Communication Big Idea, Touchpoints, Brand World Bring the brand to life in communication, direct interactions
  • 32. 36Addictive-Strategy.com Kind of People For: customer psychographic description, Tension, Needs, Voids That: condensed tension or insight in current reality; their main void to be filled, Mental Space My brand represents: Category/ the perceptual space (emotions, thoughts, or comportments) that can build a new reality, with the potential of creating a new market or category (a new room in the customer palace), Value Proposition And has the superpower to: this is how the brand starts design the perceptual space, in a unique and different way, attracting people into the new reality; should be inspirational both internally and externally; linked ultimately to noble purpose. Typology of power: positional (legitimate, reward, coercive, resources); personal (referent, expert, informational, connection). Benefits Because: the benefits offered by the brand ecosystem which improves customer life, Reasons to Believes: Thanks to: the attributes, evidences and elements that give confidence and attract customers; important to design the category and its ecosystem, Differentiation Unlike: what are you running away of; the competition current perceptual space; the Kryptonite that will make loose your superpower and disappoint the customers. Brand Architects’ Positioning Statement Improving the customer reality by designing a new category & perceptual space
  • 33. 37Addictive-Strategy.com Addictive strategy opens categories and market opportunities Design a new perceptual space, build a superpower, immerse consumers into an ecosystem, create a brand world in touchpoints. Addictive: • Authentic: is an inside-out process, that from company ideology & brand DNA, discovered from inside. • Disruptive: perceives the reality through a new lens; building the company philosophy • Design-able: help build and brand world/ ecosystem that inspires product features, benefits and touchpoints experience • Inspirational: creates experiences and emotional • Campaignable: inspires actions and communication under the same big idea, for a long time. • Trust-able: has the ability to generate customer confidence.
  • 34. 38Addictive-Strategy.com Attractivity: - Personality: a not conformist rebel, - Narcissist Identification: I would like to be like these ambassadors, - Brand world: dynamic package, always in the right places, exceptional activations. Gains confidence: - Rational benefits: gives energy, vitalize body and mind, - RTBs: taurine, glucuronolactone, B vitamins, - Social pressure: lots of loyal red bull maverick ambassadors. Makes customers feel well: - Emotional benefits: encourage overcome barriers; great taste; feel good factor, Resonance (our tribe ideology): - Noble purpose: boost your spirit to try new things and enjoy life to the full, - Values: freedom, break the rules. Customer tension, needs & voids to be filled. 1) Growth 2) Contribution 3) Love & connection 4) Importance 5) Diversity & novelty 6) Safety Relationship Ladder
  • 35. 39Addictive-Strategy.com For: trendsetters in love with adrenaline rush, That: want to try new things and enjoy life to the full, Red Bull: is the spirit booster, And has the superpower to: encourage people overcome inner barriers. Because: is the drink that helps the greatest mavericks push their boundaries, Thanks to: • World’s most courageous ambassadors, • Rebellious personality, • Iconic package, logotype and activations, • Always in the adrenaline hot-spots (extreme sports, clubs), • The intrinsic qualities that vitalize mind and body, • Great taste. Unlike: Other energy drinks that lack boldness and became commodities. Kind of People Tension or Void Mental Space Value Proposition Differentiation Benefits RTBs & Brand world Positioning Statement
  • 36. 40Addictive-Strategy.com 1) Safety 2) Diversity & novelty 3) Importance 4) Love & connection 5) Contribution 6) Growth Attractivity: - Personality: tender, vulnerable, attentive, playful, - Narcissist identification: with brand sweet personality, - Brand world: powerful iconography (the mauve cow, Alps). Gains confidence: - Rational benefits: fine chocolate quality, - RTBs: alpine provenience, German name, milk related name, - Social Pressure: If Germans buy it, should be something good; Powerful media presence, Shelf Space. Makes customers feel well: - Emotional benefits: offering a fine chocolate spreads love and tenderness to the dear ones; feel good factor (due to endorphins), Resonance (our tribe ideology): - Noble purpose: encourage people express sentiments more easily, - Values: love, quality, courage. Relationship Ladder Customer tension, needs & voids to be filled.
  • 37. 41Addictive-Strategy.com Positioning Statement For: the young at heart professionals, That: want to offer affection to the dear ones, Milka: represents a shared moment of tenderness, And has the superpower to: encourage to express sentiments more easily, Because: makes one feel courageous by offering a fine quality chocolate, Thanks to: • Mauve cow • Re-sealable package • German provenience (Alps) • 111 years of tradition • Name (Milka), Unlike: Other chocolate tablets that lack sentiments. Kind of People Tension or Void Mental Space Value Proposition Differentiation Benefits RTBs & Brand world
  • 38. 42Addictive-Strategy.com Attractivity: - Personality: a listening kind of company, - Narcissist identification: become part of the Orange world, where everything is so easy for any customers, - Brand world: orange color, optimistic music, positive & peaceful people, wellbeing. Gain confidence: - Rational benefits: great offers, care for the customer, - RTBs: 4G, direct experience in store & excellent customer care, - Social pressure: top telecom provider, lots of friends that are satisfied. Makes customers feel well: - Emotional benefits: customers feel that communication never been so easy before, Technology is better with a human touch. Resonance (our tribe ideology): - Noble purpose: Help people connect through their emotions, - Values: Optimism, openness, human centric, really listening. Building a Relationship Ladder 1) Growth 2) Contribution 3) Love & connection 4) Importance 5) Diversity & novelty 6) Safety Customer tension, needs & voids to be filled.
  • 39. 43Addictive-Strategy.com For: clients in need for genuine relations, That: believe technology should be human centric, Orange: is the opened and friendly communication partner, And has the superpower to: connect people through their emotions. Because: communication never been so easy before, Thanks to: • Really listening, • Understand customers, • Offer excellent customer care, • Up to date technology: 4G network, Orange is recognized for: friendly design & touchpoints experience, Unlike: Other providers that move the weight of responsibility to their customers. Kind of People Tensions or Voids Mental Space Value Proposition Differentiation Benefits Why to believe? Positioning Statement Brand World
  • 40. 44Addictive-Strategy.com 1) Safety 2) Diversity & novelty 3) Importance 4) Love & connection 5) Contribution 6) Growth ATRACTIVITY (First level of Identification): - Personality: young, masculine, successful, energetic, aggressive, adventurous - Narcissist identification: alpha people are driving a BMW - Brand world: dramatic appearance, fluid, sport stylish, Gains confidence: - Rational benefits: best driving machine - RTBs: state of the art German engineering: engines, gears, traction, xDrive, horse power, acceleration. - Social pressure: the successful ones drive a BMW Makes customers feel well: - Emotional Benefits: ensures a high driving pleasure, makes you feel like an alpha person, improves self esteem Resonance (our tribe ideology): - Noble purpose: the third lane car that empowers the ones who are riding towards success - Values: technological excellence, dynamism, excitement, offers high control Relationship Ladder Customer tension, needs & voids to be filled.
  • 41. 45Addictive-Strategy.com For: the alpha people who are racing towards success, That: want to have thrill and fun along their journey, BMW: is the sport stylish third lane car, And has the superpower to: ensure a high riding excitement. Because: Is the best driving machine, Thanks to: • State of the art German engineering: engines, gears, traction, xDrive, horse power, acceleration 0-100, • Dynamism, excitement, high handling control, • Identification with successful people that are driving a BMW, Unlike: Other cars that just pretend to have a masculine and sportive behavior, lacking the joy or inner power. Kind of People Tension or Void Mental Space Value Proposition Differentiation Benefits RTBs & Brand world Positioning Statement
  • 42. 46Addictive-Strategy.com Attractivity: - Personality: professional, rigorous Gain confidence: - Rational benefits: reassurance, wide acceptance and usability - RTBs: technology and innovations - Social pressure: connect consumers, businesses, banks and governments in more than 200 countries and territories worldwide. Makes customers feel well: - Emotional benefits: ? (engage, experience and collaborate with a broad range of partners) Resonance (our tribe ideology): - Noble purpose: enable consumers, businesses, banks and governments to use digital currency - Values: (Payments), Innovation, Partnership Building a Relationship Ladder Customer tension: - Safety Attractivity: - Personality: friendly, caring, joyful Gain confidence: - Rational benefits: safe, simple and smart payment - RTBs: technology and expertise - Social pressure: adopted and endorsed by World’s banks Makes customers feel well: - Emotional benefits: empower customers have their priceless moments, everyday, everywhere Resonance (our tribe ideology): - Noble purpose: Build a world beyond cash - Values: Trust, Partnership, Agility, Initiative Customer tension: - Love & Connection
  • 44. 48Addictive-Strategy.com Understand Target Groups Main target The ones that believe in what we believe, are loyal to our brand Overspill Transactional relationship, shouldn’t be targeted in communication; cannot be loyalize Best target Key Opinion Leaders, the ambassadors that spread our message Best Target: The most respected members of our customer tribe, which opinion is vital to validate the brand choices for the entire community. Main Target: Resonates with our values and noble purpose; accountable for the largest stake in our current profit; our main strategy is build for them. Volume Overspill: They buy our brand just because they see the others; can be numerous, attracted by benefits, do not share same values; therefore, cannot be loyal:
  • 45. 49Addictive-Strategy.com Demographics. • Name • Description (age, social state) • Where does he lives and what he is doing? Life. • How is his life? • What is he thinking about? Values & beliefs. • What are his fundamental values and beliefs? Happy moments & big successes. • What are the everyday moments that makes him happy? • What is making him go for another week? • What are his big achievements that make him proud? Dreams. • What are his dreams? What does he love? Tensions. • What are his fears? • What is he running from? Relationship with others. • Who are the people that he respects? • How is he influenced by social pressure? Pen Portrait It’s about Dreams and Tensions, not Demography Adapted By: Mihai Bonca I Brand Architects
  • 46. 50Addictive-Strategy.com Customer tension, needs & voids to be filled 1) Growth 2) Contribution 3) Love & connection 4) Importance 5) Diversity & novelty 6) Safety Brand Architects’ Relationship Ladder Ideology -> Emotional Positive Connections -> Gain Confidence -> Seduction Resonance, our tribe ideology that fuels motivation: - Noble purpose - Common values - Leadership styles (authoritative, affiliative, democratic, coaching, coercive, pacesetting) & Motivation (acquire, bond, comprehend, defend) Makes customers feel well, creates positive connections: - Emotional benefits, experiences and memories Gains confidence, shows advantages & evidences that lowers the customer risk: - Presents rational benefits - Shows attributes & reason to beliefs (RTBs) - Social pressure Attractivity, seduction & identification: - Design & physical appearance - Personality & vulnerabilities - Narcissist identification: similarities (what I am), or inspiration (what I want to become).
  • 47. 51Addictive-Strategy.com For: customer psychographic description. That: condensed tension or insight in current reality. My brand represents: the perceptual space (emotions, thoughts, or comportments) that can build a new reality, with the potential of creating a new market or category (a new room in the customer mind’s palace). Becomes the frame of reference. And has the superpower to: this is how the brand starts design the perceptual space, in a unique and different way, attracting people into the new reality; should be inspirational both internally and externally; linked ultimately to noble purpose. It is the main point of difference. Because: the benefits offered by the brand ecosystem which improves customer life. Thanks to: the attributes, evidences and elements that give confidence and attract customers; important to design the category and its ecosystem. Unlike: what are you running away of; the competition current perceptual space; the Kryptonite that will make loose your superpower and disappoint the customers. Target Problem Statement Category Value Proposition Differentiation Benefits RTBs & Design Ecosystem Propose a New Reality in a Positioning Statement Design a new category & perceptual space Adapted By: Mihai Bonca I Brand Architects
  • 49. Company Ideology Simon Sinek Start with Why Collins & Porras Build to Last.
  • 50. Business / Brand Strategy Michael E Porter. Competitive Strategy Ramadan/ Peterson/ Lochhead/ Maney. Play Bigger.