Branding  –  It’s  an  Emo1onal  Business  

Prepared by Matt Millard Tuesday, June 11, 2013

Vietnam  Indonesia  India  

China  Hong  Kong  

Philippines  Singapore  

3  billion  customers  We now have the privilege of representing

Starting 10 years ago in HCMC & HK we’ve expanded to...

The  Art  and  Science  of  Branding  

Branding  is  about  using  crea5vity  and  design  to  bring  brands  to  life..  

…informed  by  psychology  and  logic  and  executed  through  strategy  and  process.    

The  most  effec7ve  branding  establishes  a  strong  emo7onal  connec7on  to  the  customer.  Today’s  talks  will  show  how  and  why  this  is  true.  

At  Cimigo…  

And  for  very  good  reason…  

Pu=ng  the  Consumer  at  the  Heart  of  the  Process  

we  put  the  consumer.  

at  the  centre  of  everything  we  do  

WHAT  is  a  brand?  

FIRST  A  brand  is  not  a  logo.  

SECOND  A  brand  is  not  an  iden1ty.  

FINALLY  A  brand  is  not  a  product.  

So  what  exactly    is  a  brand?  

A  BRAND  IS  A    CONSUMER’S  EMOTIONAL  CONNECTION    TO  A  PRODUCT,  SERVICE,  OR    ORGANIZATION.  

Brands  exist  in  the  minds  and  hearts  of  our  consumers.  

SO  IT’S  NOT  WHAT  YOU  SAY  IT  IS.  

IT’S  WHAT  SHE SAYS  IT  IS.  

It  is  the  many  images,  feelings,  beliefs,  and  associa7ons  she  has  that  come  together  to  make  up  her  percep1on  of  the  brand.  

"A  brand  is  a  living  en7ty  -­‐  and  it  is  enriched  or  undermined  cumula7vely  over  7me,  the  product  of  a  thousand  small  gestures.”  

Michael  Eisner,  CEO  

BRANDING    is  YOUR  way  of  influencing  THEIR  percep1on.  

 Managing  the  signals  that  evoke  the  emo7ons  and  drive  the  percep7ons  of  a  brand  

 The  percep7on  can  be  controlled  by  the  owner  of  the  brand,  but  beware,  the  percep7on  can  also  be  controlled  by  many  external  influences,  par7cularly  in  today’s  networked  world.    

 A  brand  percep7on  is  built  over  7me.  It  is  craXed,  nurtured  and  communicated  by  brand  builders.      

  Like  me.  And  you.  

"Like  human  beings,  all  brands  are  born  equal.  The  trick  is  to  prove  one  isn’t.    Branding  is  the  art  and  science  of    iden7fying  and  fulfilling  human  physical    and  emo7onal  needs  by  capturing  a\en7on,  imagina7on  and  emo7on  long  enough  to  make  money  from  it.”  

Idris  Mootee  

Product  vs.  Brand  

A  product  is  built  in  a  factory.  

A  product  is  an  object  /  bundle  of  func7onal  a\ributes.  

A  product  is  sold  by  a  merchant.  

A  product  is  easily  copied  by  a  compe7tor.  

A  product  is  quickly  outdated.  

Products  are  commodi7es.  

A  brand  is  built  of  trust  and  rela7onships.    

A  brand  is  a  personality.  

A  brand  is  bought  by  a  consumer.  

A  brand  is  unique.  

A  great  brand  is  7meless.  

Brands  have  value  

vs.

A cup of coffee

A Starbucks

vs.

A computer

An i-Mac

vs.

A car

A BMW

vs.

A glass of soda

A Coca Cola

Which  Means  Brands  Have  VALUE  

 BRAND  EQUITY  is  the  value  that  the  marketplace  is  prepared  to  pay  for  a  business  aXer  the  value  of  it’s  hard  assets  has  been  deducted.      

 Brand  equity  is  key  because  it  means  that  consumers  will  pay  more,  choose  more  easily,  buy  more  oWen  

 Consumers  will  switch  brands  less  if  they  understand  and  believe  in  the  brand.  

How  does  “branding”  work?  

Products  give  us  choice    

(and  way  too  much  of  it)  

Brands  help  us  choose  

It’s  SCIENCE  -­‐  we  are  built  to  only  no1ce  what’s  different  

Brands  add  FUN  and  INTEREST    

and  provide  ASPIRATIONS  and  DREAMS.  

They  are  FANTASY,  ESCAPISM,  a  link  to  another  world..    

Brands  sa1sfy  our  need  to  belong  to  something  larger  than  ourselves  -­‐  a  sense  of  community  and  tribe…  

…but  at  the  same  7me  they  help  us    express  our  individuality  

The  ART  of  branding  is  using  crea7vity  to  connect  to  people’s  hearts  and  emo7ons  

Here  comes  the  SCIENCE!  

Here  comes  the  SCIENCE!  

System 1 – The Limbic System System 2 Unconscious reasoning Conscious reasoning Judgments based on intuition Judgments based on critical examination Processes information quickly Processes information slowly Hypothetical reasoning Logical reasoning Large capacity Small capacity Prominent in animals and humans Prominent only in humans Unrelated to working memory Related to working memory Operates effortlessly and automatically Operates with effort and control Unintentional thinking Intentional thinking

Influenced by experiences, emotions, and memories

Influenced by facts, logic, and evidence

Can be overridden by System 2 Used when System 1 fails to form a logical/acceptable conclusion

Prominent since human origins Developed over time Includes recognition, perception, orientation, etc. Includes rule following, comparisons, weighing of

options, etc.

System 2 equivalent computing power 50

Bits/sec

System 1 equivalent

computing power 11MILLION Bits/

sec

The  conscious  ra7onal  brain  isn’t  the  Oval  Office;  it  isn’t  there  making  execu7ve  decisions  in  our  minds.  It’s  actually  the  press  office  issuing  explana7ons  for  ac7ons  we’ve  already  taken.    

–  Rory  Sutherland,  UK  Group  Vice  Chairman,  Ogilvy  

“We  think  much  less  than  we  think  we  think”  

Emo1on  and  Memory  are  not  just  Interlinked  –  together,  they  ARE  the  brand    

“A  man  always  buys  something  for  two  reasons  –  A  good  reason,  and  the  real  reason”.  JP  Morgan  

HOW  to  build  emo7on  into  brands  

The  best  brands  of  all  “jam”  with  their  consumers  to  invent  and  imagine    ideas  designed  for  the  future…  

Good  brands  know  how  important  it  is  to  put  yourself  in  the  shoes  of  the  consumer!  

! A feeling of understanding

! A Ha!

! A revelation

! Inspiration for ideas

! A platform for brand strategy and positioning

A penetrating discovery about the consumer

that has the potential to unlock growth

The Consumer Insight Is Key

Informa1on  or  Insight?  

•  Beer is mainly consumed by young males

•  People don’t buy computers because they are too expensive

•  Mothers need to demonstrate their love for their family

•  Consumers want value for money and good promotions

INSIGHT!

Begins with the word ‘need’ Goes deep and is driven by emotion

Is actionable and relevant

The  Power  of  Insight  -­‐  Starbucks  

Background  

•  Starbucks  sold  just  coffee  beans  

•  Coffee  was  a  commodity  

Insight  

•  In  a  world  that  is  hec7c  and  stressful,  consumers  need  an  opportunity  to  relax  and  have  a  break  

How  did  Starbucks  apply  this  Insight?  

•  Saw  an  unfulfilled  opportunity  to  create  a  chain  of  coffee  bars  which  offered  a  place  to  relax  and  re-­‐charge.  

•  Starbucks  are  not  in  the  coffee  business,  they  are  in  the  TIME  business  –  and  they  carved  a  massive  share  of  the  market  before  any  compe7tor  could  catch  up  with  them.    

‘The  Third  Place’    ’20  minutes  just  for  me  –  because  I  deserve  it.’  

•  The  core  of  Starbucks  product  offer  is  of  course  the  coffee,  food,  coffee-­‐related  accessories  

•  But  other  secondary  products  and  the  touchpoints  augment  the  no7on  of  Starbucks  as  a  third  place:  –  Music,  board  games,    

–  Store  environment,  signage,  furnishings,  smells,  sounds,  the  way  they  name  their  coffee  all  contribute  to  the  brand  percep7on    

–  Delivering  comfort,  relaxa7on,  familiarity,  exclusivity,  and  all  of  the  other  things  that  you  look  for  in  your  preferred  hang  out  spot.  

Each  of  these  touchpoints  and  experiences  help  define  the  

posi7oning  for  the  brand  and  is  ul7mately  part  of  their  messaging  strategy  

The  essence  of  a  brand  comprises  of  3  simple  components,  but  the  rela1ve  importance  of  each  

changes  over  1me  

Compara1ve  

Ra1onal   Emo1onal  

What  the  brand  does  

for  consumers  

How  the  brand  makes  consumers  

feel  

How  the  brand  does  it  differently  

The  essence  of  a  brand  comprises  of  3  simple  components  

Compara1ve  

Ra1onal   Emo1onal  

What  the  brand  does  

for  consumers  

How  the  brand  makes  consumers  

feel  

How  the  brand  does  it  differently  

The  task  of  the  adver7ser  is  to:    

create  compelling  messages  which  build  and  reinforce  the  emo1onal  connec1on  between  consumer  and  brand  

through  crea1vity,  strategy  and  targeted  delivery,    

across  many  different  ‘touchpoints’        

Great  Emo1onal  Brand  Communica1ons:  

 Are  grounded  in  consumer  insight  and  connected  to  emo7onal  responses  

 Are  crea1ve  and  differen1ated  –  what  we  say,  how  we  say  it,  what  channels  we  use  

 Have  a  strong  idea  that  can  work    across  7me  and  channels  

 Are  simple,  and  tell  a  great  story  

 Have  impact  –  they  get  no7ced  

 Are  credible    

If  you  focus  on  building  emo7onal  connec7ons  based  on  strong  insights  

Consumers  will  LOVE  your  brands…