SSBA-SCS Power Luncheon:

Branding Logic BasedOn Your Status Quo

17 Aug 2016by Bach MOH

AIM

* rules of thumb general principles with broad applications that are not intended to be strictly accurate for every situation.

To help you deriveyour branding direction.

7 rules of thumb*to help you look within

your business for an epiphany...

#1 Core Competencies #2 Brand Architecture#3 Product Consumption Speed#4 Product Development#5 Midstream B2B Branding#6 Market Brand Appeals#7 Brand Equity Growth

CONTENT

#1 Core Competencies

The earlier a brand acquires or develops its CCs, and/or the more CCs it has, the more likely it will

lead & outgrow its competition within the next 3-5 yrs.Status Quo (D) Mid-Game (usu. D+3 yrs) End Game (usu. D+5 yrs)

CoreCompetencies

Special Products/Services

Automation(Internet+)

Big Data

Fame-for-GainStrategy

Government

Unique Sci-TechMarketing

&Sales SOP

HR Society & NGOs

Special Relationships Process Enterprises

Knowledge System Systems Target Markets

High Brand Awareness Financial Ops Individuals

#2 Brand Architecture

Brand ArchitectureTypes Examples Comments

Masterbrand IKEA, BMW 3/5 Series, FedEx Freight, FedEx Express, Yamaha Music, Yamaha Motor

Brands belonging to Large-scale Enterprises (LEs), high confidence level

Endorsed Brand McCafe, Ford Focus, Sanyo Kelong, Buick by GM, Jinliufu (Wuliangye), Universal Picture, A Sony Co., Infiniti (Nissan)

Need help from Endorser Brands for speedy market recognition

Sub-Brand Unilever Red Tea: Lipton, P&G Shampoo: Rejoice (Soft)/ Pantene (Nutrients)/ Head & Shoulder (Anti-dandruff), P&G Men's Facial: Gillette, Shanghai Jahwa: summer skin problems: Liushen (Six God), Nestle Maggie, Intel+Dell

Used by products with higher risks (fear of domino effects). Used by products that wish to enter segmented markets with fresh appeals. Used frequently by FMCG and F&B.

The better defined a brand position is, the easier it is to decide which brand architecture to apply.

#3 Product Consumption Speed

Speed ofConsumption

Marketing StrategiesTo Be Adopted

Primary BrandCommunication

TouchpointsBrand ValuesTo Accentuate

Fast 4P+4V Online Emotional ValuesSymbolic Values

Medium 4P+Partial 4V & 4R Depends Depends

Slow 4P+4R Events Functional Values

The faster your products move (consumed), the more online marketing and more emotional & symbolic

values you should use in your brand communications.

Note: Not applicable to 3rd-tier cities & below

#4 Product Development

Product DevelopmentStrategies Examples

Specialization Barber Shop: provides barber haircut & services directly related to barber haircut.

Differentiation Beauty Centre: from hairdressing to deeper & broader product mixes like facial treatments, body massages, detoxification services etc.

Marginalization Goldlion: from ties to marginally related products (used by the same target customers), like wallets, luggage bags, fashion apparels etc.

DiversificationYamaha: multi-product, multi-industry strategy with very different product ranges for different industries, e.g. music instruments, motor cycles, sports equipment etc.

The better the sales are, the more you should consider a product upgrade. Do not wait until it is saturated.

Note: An industry's economic life cycle phases—emergence/ growth (upgrade products here) /matured (saturation)/ decline periods

#5 Midstream B2B Branding

B2B Product Types Brand Upgrade Options Examples

Finished Products Dual brand Mengniu & Tetra Pak

PartsCritical part Intel+Dell

Non-critical part Michelin

Raw MaterialsGo downstream Swarovski

Critical ingredients SchottBranded raw materials Invista > Lycra

OEM Produce the same products they OEM for 361, Anta

* E.g. competitor price wars, client margin squeeze, helplessness in the face of market volatility, brand oblivion etc.

The sooner a B2B entity co-brands with an end-user product downstream, the sooner it gets out of the midstream rut *, and starts to build a real brand.

#6 Market Brand Appeals

The lower the city tiers, the lower the [consumer] appreciation for a brand’s emotional/symbolic values.

1st-tier cities require a “divide & conquer” strategy.

Markets byCity Tier

Brand Appeals Brand ValuesTo AccentuateTypes Descriptions

1st Segmented brand appeals Individualized customer-centric Emotional, Symbolic

2ndSegmented brand appeals Individualized customer-centric Emotional, Symbolic

Singular brand appeals Belief-based Functional, Emotional

3rd Singular brand appeals Belief-based Functional, Emotional

Value vs Benefit brand appeals Market value-based Functional

4th & below Value vs Benefit brand appeals Market value-based Functional

#7 Brand Equity Growth

The longer a brand has been around, the moreyou should brand it for “fame” and “depth”(as opposed to branding it for direct gains).

Yrs of Ops Terms Key Branding Activities Key Brand Equities

1-3 Early Simple branding Brand Awareness

4-6 Early-Mid Aggressive & precise branding Perceived Brand Qualities

7-12 Mid Break through brand impasse Brand Loyalty(Brand Reputation)

>12 MaturedBrand PR to upkeep(1) Premium Pricing(2) Sustainable Growth (Sales)

Brand Associations

THANK YOU

Core Competencies 3.0: Special Identity—Be The Hub For All Stakeholders

Fame-for-Gain Strategy. Now that the biz could systematically generate profits, keeping stakeholders happy (see below) , so that they remain fond of us, will be all it takes to keep the goodness going.• Govt: help fulfil its corporate/social goals• Society: create progress for the society• NGOs: let people know about these NGOs,

raise their awareness• Enterprise: for fame & gain• Tgt Market: create strong brand associations• Individuals: Satisfy their spiritual needs

Strategic OutlookYr

1

3

5

Core Competencies 1.0: • Special Products/Services• Unique Sci-Tech• Special Relationships• Knowledge System• High Brand Awareness

Aim for the End Game, set eyes on the Mid-Game, and do these:• BP, ABMP, ABME, build

team, build platform & channels*

Status Quo

End Game

Core Competencies 2.0: 「 Automation / Internet+Industry+Big Data 」 Profit-making Work Model & System

Establish SOP & train HR. Blend the platform, Big Data, team, products & services, users and so on to form a profit-making work model & system.

Mid-Game

* Note: BP = Brand Positioning, ABMP = Annual Brand Marketing Planning, ABME = Annual Brand Marketing Execution

Brand Architecture (Full)

Brand Architecture Types Examples

MasterbrandSingle Brand Standalone IKEA

Series BMW 3 Series, 5 Series

Family Brand Marginalized FedEx Freight, FedEx ExpressDiversified Yamaha Music, Yamaha Motor

Endorsed Brand

Linked Name - McCafe

Explicit Endorsement Co. + Product Ford FocusProduct + Product Sanyo Kelong

Implicit Endorsement - Buick by GMFlexible Endorsement Jinliufu (Wuliangye)

Token Endorsement - Universal Picture, A Sony Co.Shadow Endorsement - Infiniti (Nissan), Lexus (Toyota)

Sub-BrandIndividual Brands

By Product Type Unilever Red Tea: Lipton

By Product DifferentiationP&G Shampoo: Rejoice (Soft), Pantene (Nutrients), Head & Shoulder (Anti-dandruff)

By Product Line P&G Men's Facial: Gillette

By Consumer Demand Shanghai Jahwa: Summer skin problems: Liushen (Six God)

Source Brand - Nestle Maggie, Ford FocusDual Brand - Intel+Dell

Marketing Strategy Considerations

Specialization Nostalgia

Phase 1:

Dictated (brand)

appeal period

Phase 2:

Industrial (brand)

appeal period

Phase 3:

Technical (brand)

appeal period

Phase 4:

“Value” vs benefit

brand appeal period

Phase 5:

Singular brand

belief/appeal period

Phase 6:

Segmented brand

belief/appeal period

Seller’s market Regulated

economy

Regulated

economy with

over-supply

Homogenous

market

Belief-based brand

appeal market

Highly individualized

customer-centric brand

appeal period

“Just tell me what

you’re selling, I’ll

buy.”

“If it’s cheap &

good, I’ll buy.”

“If it’s a cheap &

good technical

product, I’ll buy.”

“Everyone’s saying

his products offer

the best values. It’s

all the same; I’ll only

buy what that would

really benefit me.”

“It’s all the same.

Everyone’s high-

class, delicious,

cultural. The appeals

are getting dull. I

don’t know how to

choose anymore.”

“Hey! This is me! The

brand beliefs are

customized for me, I’ll

buy cuz’ it ‘represents’

me.”

Brand Development Trends In China

China is here

Brand Equity

David Aaker’s Brand Equity ModelKPI:• Product—quality, functions, exterior etc• Corporate—biz nature, op scale, culture etc• Symbol—logo, ad slogan, ad etc

Brand AwarenessKPI:• Aided awareness• Unaided awareness• Familiarity & liking

Brand LoyaltyKPI:• Brand reputation• Brand satisfaction• Sales generation from new

customers from old patrons

Other Brand AssetsKPI:

• Market shares• Channel coverage• Premium potential

• Trademark value

Brand AssociationsKPI:

• Brand impression• Key association

• No. of brand extensions

PerceivedBrand Quality

Brand Competitiveness Rating System

Brand Competitiveness

BrandSelf-Awareness

Brand Identification

Unaided M

emory

Aided M

emory

Brand R

ecognition

BrandAwareness

Brand N

aming

Brand Logo

Brand P

roductsB

rand Services

Brand A

dsIndustry P

osition

BrandReputation

Intl Com

petitivenessTechnological Levels

R&

D A

bilitiesP

roprietor Abilities

CS

RB

rand Image

BrandLoyalty

Brand P

remium

sB

rand Satisfaction

Brand P

ersonality

Brand Values

Brand R

epeated Sales

Brand Leadership P

osition

BrandAssociations

Em

otional Associations

Function-Benefit A

ssociations

Custom

er Associations

Advertising A

ssociations