Post on 02-Jul-2015
transcript
Meaningfully different brandsCharles FosterMD Millward Brown MEA
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W E A R E
THE WORLD’S
LEADING EXPERT
helping clients
GROWgreat brands
IN
Meaningfully different brands,
properly amplified, create sustainable
financial value growth.
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Millward Brown Brand Philosophy
Brands
Brands
Brands
Brands
a brand?
A set of associations (ideas, memories and feelings) in
the mind of a consumer
What is
What makes a brand valuable?
Successful brands build associations that deliver these commercial benefits
I N C R E A S I N GT H E L I K E L I H O O D
that a consumerwill buy/consider
I N C R E A S I N GH O W M U C H
consumerswill pay
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MEANINGFUL
DIFFERENT
SALIENTComes to mind
quickly and readily
when activated by
ideas relating to
category purchase
Consumers feel an
affinity for the brand
or think it meets their
needs
Feels different from
other brands or sets
the trends for the
category
Apple: unique personality and tangible product innovation =
differentiation worth paying for
137 248 131
137 158 272
Avr = 100
$185b
MEANINGFUL DIFFERENT SALIENT
Avr = 100
Coca-Cola: first to mind for billions of thirsty people =
dominant volume share for impulse category
$78b
Salient
DifferentMeaningful
The five key inputs…
Meets Needs
Affinity
Unique
Dynamic
Awareness Intensity
The new approach has inputs which shorter, quicker, easier to administer
Please drag each brand onto the scale to indicate how different they seem to others in the market. You can place more than one brand in each box or leave a box empty. Please place all brands on the scale before continuing.
This type of questioning improve the model fit by 16%
Further development work through BrandZ:
>40 countries, >5000 brands, >300,000 consumers
MDS derives three key summary metrics of brand equity related specifically to core business objectives
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Our headline measures of equity recognise that your portfolio can deliver a financial return in two ways and provides a predictive measure of future potential.
P O W E R is a prediction of the brand’s
share based purely on brand perceptions.
Are consumers predisposed to choose the brand over others?
Delivering more share
P R E M I U M is a prediction of the price
index a brand can charge based purely on
perceptions.
Are consumers predisposed to pay more for the brand?
Justifying a price premium
P O T E N T I A L is the probability that the brand will
grow share based purely on brand perceptions.
Are consumers predisposed to stick with the brand in future or try it?
NO
WF
UT
UR
E
Meaningful, different and salient brands…
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Each of these metrics are created from measures of how meaningful, different and salient brands are.
… Have the POWER to capture significantly MORE VOLUME
POWER
… Can command a price PREMIUM PREMIUM
… Have much greater POTENTIAL to gain value share in the future
POTENTIAL
Our Framework of consumer decision making
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Predisposition and in-market activation allow us to determine what drives your financial performance and the best way for you to leverage share and/or to justify your price point now and in the future.
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Great metrics,
need great data
capturing techniques
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Busy consumers
Less accessible
Poorer quality data
Slow study timelines
We are 90% electronic DC today, PAPI is going because….
BUT WHAT’S NEXT?
Mobile interviewing is the future; in fact it is already here
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Why consider mobile surveys?
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ACTUALLY THE REAL QUESTION SHOULD BE WHY NOT?
*Source: e.Marketer Global report June 2014 **Source: Informa WCIS;***Source: StatCounter Global Stats, 9/12
1.76 BILLION
37% GROWTH
15% OF WEB
smartphones users by the end of 2014 – overtaking
laptops and PCs*
in the number of global 3G subscribers in the past year**
traffic comes via mobile – more than double last year;
Mobile traffic share already over 50% in India and China***
Nearly 51% of web traffic in KSA comes from a
mobile phone device and not from a desktop (49%)
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15
18
25
33
40
42
43
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47
47
48
53
India
Indonesia
Vietnam
Brazil
Turkey
Japan
Philippines
Argentina
South Africa
Thailand
Mexico
Russia
This is not surprising since KSA has the 3rd highest smart phone penetration in the world.
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62
65
65
68
72
75
76
81
81
85
Italy
France
Germany
China
USA
Canada
Saudi Arabia
Spain
Australia
UK
Source – Google Our Mobile Planet 2014.
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MOBILE SURVEYS GIVE YOU GREAT SHORT TERM ADVANTAGES
Consumers are connected to
their mobile phones all the time
and find it comfortable and
engaging as a communication
medium better interview
context
Pilot studies have shown that without
interviewers (over)prompting, mobile
data is more discriminating between
brands and reflect market reality better
better data quality
Speed of data access and deliverables
increases significantly.
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MOBILE SURVEYS WILL HELP YOU FUTURE PROOF YOUR INSIGHTS
Door to door access will get increasingly difficult and expensive due to
rising trend of gated communities where higher income respondents reside
better representativeness of the sample
Can integrate exciting possibilities offered by the smartphone platform:
multimedia, geo-location (GPS), passive behaviour monitoring (once the
smartphone penetration is sufficiently high).
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Data quality is impressive
on Mobile
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KEY INSIGHTS WE HAVE SEEN FROM THE DATA
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ACCESS TO HIGHER INCOME HOUSEHOLDS
MOBILE GIVES US BETTER ACCESS TO HIGHER INCOME HOUSEHOLDS (MORE
VALUABLE CUSTOMERS) THAN TRADITIONAL DOOR-TO-DOOR INTERVIEWING CAN
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MOBILE DATA MATCHES UP TO MARKET SHARE
OVER TIME, MOBILE DATA MATCHES UP TO MARKET REALITY EVEN MORE
DUE TO THE ABILITY TO COVER WIDER GEOGRAPHIES NATIONALLY
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MORE HONEST FEEDBACK
SELF-COMPLETION MODE MEANS THAT RESPONDENTS
ARE MORE DISCRIMINATING TOWARDS BRANDS,
GIVING US MORE HONEST AND USEFUL FEEDBACK
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NOT AN ISSUE CAPTURING OPEN ENDED RESPONSES
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SCREEN SIZE DOESN’T MATTER –RESPONSES ARE CONSISTENT
TWO KSA STUDIES IN FIGURES
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8 minsto complete on average for Banking
65% answered the surveys using an Apple iOS device
83% answered the surveys using a smartphone
11 minsto complete on
average for Auto
9 days get 1000 completes
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KSA STUDIES BY RESPONDENT LOCATION
2 Brand Equity Studies completed via Mobile in KSA
Cars example
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EQUITY OF LEADING CAR BRANDS
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Take a Guess–Which Brands have higher Power?
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Power
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What is driving Toyota’s Power?
Very Salient and Strongly Meaningful overall. Weak perceived difference is its main weakness as it is the most popular make in the country.
Salient
156
Power
19.3
Salient
156
Different
88
Power
19.3
Salient
156
Different
88
Meaningful
128Power
19.3
Salient
156
Different
88
Meaningful
128Power
19.3
Salient
156
Different
88
Meaningful
128Power
19.3
Because people are predisposed to consider
brands when they believe them to be
meaningful. They meet their needs better
than other brands and they appeal to them
more than others.
If a brand seeks to charge a premium, people
will only do so if they believe the brand is
meaningfully different in some way.
People consider the brands that are most
salient – the ones that come to mind
quickest when the need arises.
Leading car brands in Saudi Arabia
Power
12
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Over the last couple of years, the brand equity scores of Toyota has come down at the expense of growth of brands like Ford and Hyundai.
Power can transform quickly…
0%
5%
10%
15%
20%
25%
Toyota Ford Hyundai Mercedes-Benz BMW
2011
2013
Changing demographics also impacting power shift: Younger Saudis lean towards Hyundai and BMW
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POWER SCORES
IN 2013
TOTAL
SAMPLE20-29 YRS 30-50 YRS
Toyota 19.3%
Ford 12.1%
Hyundai 12%
Mercedes-Benz 11.8% Average Average
BMW 11.1%
Chevrolet 9%
Honda 9%
Nissan 8% Average Average
GMC 7% Average Average
(236) (164)(400)Base:
Lower than the average Higher than the average
What contributes to being Meaningful & Different in cars?
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- 12.4%
0.4%
3.1%
16.3%
17.0%
24.2%
26.6%
Doesn't meet needs
Too cheap
Costs more
Acceptable price
Stylish design
Better to drive
Proud to drive
- 15.6%
- 1.3%
29.9%
1.7%
16.7%
14.0%
20.9%
Doesn't meet needs
Too cheap
Costs more
Acceptable price
Stylish design
Better to drive
Proud to drive
Contribution to Meaningful Contribution to Difference
What is driving Meaningful & Difference for cars in KSA?
Premium
pricing
Driving
experience
Average
Endorsement
across category
Toyota Ford Hyundai
Better to drive than others in their
class33%
More stylish and better designed
than others in their class34%
Would be proud to use 34%
Acceptable price 13%
Does not meet my needs 22%
Costs more than you're prepared
to pay12%
Too cheap 6% -1%
1%
-5%
13%
-4%
-8%
1%
Power differences across mid-range car brands
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2%
-6%
9%
9%
-15%
-1%
-10%
1%
-3%
-2%
4%
-6%
-2%
1%
Average
Endorsement across
category
Mercedes Benz BMW
Better to drive than others in
their class33%
More stylish and better designed
than others in their class34%
Would be proud to use 34%
Acceptable price 13%
Does not meet my needs 22%
Costs more than you're prepared
to pay12%
Too cheap 6% -1%
13%
-2%
-10%
33%
36%
22%
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-5%
16%
-13%
-11%
38%
29%
31%
Power differences across prestige brands
TO SUM UP….
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The MDS framework:- Helps you build meaningful brands & grown brand value- Holistic in approach, yet can diagnose in detail the barriers &
facilitators to brand growth- Validated, forward looking and linked to brands’ financial
performance.
Digital data-collection is already a reality- Consumers are spending more time on digital devices- Gives us better access to different consumer profiles- Better quality data- Realistically shorter questionnaires are the future
Any Questions?
Get in touch with Charles Foster
charles.foster@millwardbrown.com