40
| Date post: | 06-May-2015 |
| Category: |
Business |
| Upload: | university-technology-malaysia |
| View: | 7,373 times |
| Download: | 0 times |
NEXT GENERATION BRANDING
AGENDA: OutlineBranding principles
New rules for a new business eraMalaysia boleh!
A Malaysian brand success storyAction items for success
How to build your brandParticipate!
BRANDING PRINCIPLES
WHY BRAND?: Branding advantages Shortens sales cycles
Maximizes marketing spend
Facilitates repeat sales
Enables premium pricing
Blocks competitors
Independence from OEM relationships
Attracts strategic alliances & partners
Best path toward profitability
BRANDING PRINCIPLES
BRANDING: Definition
Logos?
Advertising?
Brochures?
“SuperBrand award”?
TV?
Expensive?
International?
“Positioning?”
What is a brand?
BRANDING PRINCIPLES
“A name, term, sign, symbol or design, or a combination of these that identifies the goods or services or one seller or group of sellers and differentiates them from those of competitors”.
“The sum of all the images and associations customers have concerning a company”.
“Great brands are born from people who are having fun. Their excitement is reflected in the meaning of the brand”.
“A brand is a long-term profitable bond between an offering & a customer. This relationship is based on economic, emotional and/or experiential value, backed by everyday operational excellence & consistently measured for accountability, usually by customer profitability.”
BRANDING PRINCIPLESMYTH REALITY
You need a big budget to brand
The more ads you see, the bigger the brand
????
Brands are based not on spending but on continuing customer relationships
Only companies selling to consumers can brand
Businesses selling to businesses can establish dominant brands
Branding effectiveness is determined by the awards won
Branding effectiveness is measured by sales, profitability & growth
Only marketing experts can brand
Everyone in an organization is responsible for branding
BRANDING PRINCIPLES
MARKETING v. BRANDING: Which is which?
What is the difference between marketing & branding?
Answer is key, because it helps establish our activities & measurements.
BRANDING PRINCIPLESMARKETING v. BRANDING: Which is which?
Marketing
Encourages first-time purchases
Advertising
Public relations (PR)
Promotion
Merchandising
Etc.
Branding
Delivers customer economic, experiential & emotional value that encourages repeat purchases
Price Operations Culture Key differentiator Experience (2) Talent Service
BRANDING PRINCIPLES
Marketing Dept.
Mass economy (1920-95)
Customer economy (1996-2007)
Demand economy (2008-??)
Adv
ertis
ing,
etc
.
“Positioning”
Market research
Qua
lity/
serv
ice P
rocess/integration
Databases
Imm
edia
cy
Personalization
Real-time enterprises
Marketing dept. Organization Supply chain
“Sell what we make”
“Sell what customers buy”
“Provide customer solution”
Sales Profitability Relationship depth
Driver:
Metrics:
BRANDING PRINCIPLES
Product Development
Targeting, Positioning
Product Strategy
Pricing Strategy
Promotion Strategy
Place Strategy
Implementation, Monitoring & Control
Co
mp
any-d
riven
What two critical branding factors are missing?
Old Brandi
ng
SUSTAIN VALUE
Improve retention
Increase customer, product & account penetration
Personalize relationships
SENSE VALUE
• Understand competitors
• Sense market trends
• Understand customers
• Identify opportunities
DEFINE VALUE
• Segment customers
• Target profitable segments
• Craft value propositions
• Validate value propositions
REALIZE VALUE
• Develop offerings
• Meet customer demands for economic, experiential, emotion value
• Measure value
BRANDING PRINCIPLES
Find. Grow. Measure. Profit.
Cu
stom
er-d
riven
BRANDING PRINCIPLESStrategic
Branding
Customer
Ads, PR, etc.
BRANDING:
Planning priorities
FAQ: How long does it take to establish a brand?
BRANDING PRINCIPLESBRANDING: 4 types Acquisition branding Targeting & segmentation Retention branding Keep customers longer & purchasing more
Brand penetration Customer, account, product
Advocacy Get customers to sell to others
Acquisition (Ads, PR, etc.)
Retention/ recovery (Reduce defection, loyalty)
Advocacy (word of mouth)
Brand penetration
PROFIT
S!
BRANDING PRINCIPLES
BRANDING: Acquisition vs. retention
“The purpose of business is not to make a sale, but to _____ and _______________.”
-- Peter DruckerLegendary management consultant
make keep a customer
BRANDING PRINCIPLES
Acquisition Dedicated staff Average acquisition cost: $113 Cost-to-serve higher Price sensitive 2/3s of new buyers fail to make repeat purchase
Retention• No dedicated staff• 80/20 profitability rule• Cost-to-serve lower• Trust & loyalty fuel purchases• Tell 8-10 others about happy experiences
BRANDING: Acquisition vs. retention
YET: 80-90% of marketing budgets YET: 10-20% of budgets
+
BRANDING PRINCIPLES
ACQUISITION VS. RETENTION
Investment Revenue
$1 acquisition $5
$1 quality, value, communications(help retention)
$60Creative Good
* Michigan State Business School
BRANDING: Acquisition vs. retention
BRANDING PRINCIPLES
Average customer loss rate = 20% a year 20% customer loss rate cuts profits 17% Retention increase of 5% = lifetime profit
increase of 95% Existing customers 3-8 times cheaper to serve
HOW TO INCREASE SALES
Odds of selling to new customer 5-15%
Odds of selling to existing customer 50%
Odds of selling to a former customer 10-15%
BRANDING: Acquisition vs. retention
BRANDING PRINCIPLES
BRANDING: Acquisition vs. retention
MALAYSIA BOLEH!
HOE PHARMACEUTICALS: Background Sdn Bhd. headquartered in KL Manufactures skin cream & liquid
preparations for prescriptions & OTC Also manufactures herbal & cosmetic
products Meets standards of WHO, Ministry of
Health in Malaysia & other countries Extensive international investment
MALAYSIA BOLEH!
BRANDING: Challenges & opportunities Foot problems very common
Cracked heel Ladies & sandals
Extensive local/international competition Dissatisfaction with competitive products Quality product able to effectively solve
customer problem Branding not offering a capability, but solving
a customer problem Certifications offer third-party credibility
Key!
MALAYSIA BOLEH!
BRANDING: Secrets of success Long-term commitment
“We have always looked at this as a long-term strategy; branding is not something that is done overnight.”
-- George Soh, General Manager Followed a brand plan
Lack of planning shortcut to failure “Malaysia’s Best;” “Tak Nak” campaigns
Planned growth in stages First Malaysia, then Singapore, Thailand,
Hong Kong, Taiwan, more
MALAYSIA BOLEH!BRANDING: Secrets of success
Extensive market research Target market: high-income 30+ females Pharmacies, physicians How product is used Follow-up surveys for benchmarking
Operational excellence High-quality manufacturing
Excellent integrated marketing execution PR Advertising Collateral
Web Promotion Training
MALAYSIA BOLEH!
SECRETS OF SUCCESS: PR Variety of targets
Local & monthly Well-targeted message
Open shoes Overweight
Education No moisture, dry out
Consequences Infection Doctor care
Reason to buy from customer viewpoint}
MALAYSIA BOLEH!
SECRETS OF SUCCESS: Advertising Testimonial theme Targeted message
Reflects target customer Strong graphic image Credibility
3-day proofpoint Reference for purchase
Package
MALAYSIA BOLEH!
SECRETS OF SUCCESS:Collateral Visual identification of problem Inside: Education
How it works What makes it better Credibility
Before/After photos Shows benefit from customer
perspective Note consistency of graphics
MALAYSIA BOLEH!SECRETS OF SUCCESS: Web
Good design Easy to navigate Easy to read
Complete product info
Contact info Responsiveness
Current
MALAYSIA BOLEH!SECRETS OF SUCCESS: Promotion
Promotion/contest Linked to target market
1 ct. diamond Prospect involvement
Match slogan Leveraged with PR
“I have been using Elgy Plus cracked heel for some time & I am so excited to be one of the winners.”
MALAYSIA BOLEH!SECRETS OF SUCCESS: Training
“Retail detail” Pharmacies, physicians
Educate Why use “Use product after cure”
MALAYSIA BOLEH!SECRETS OF SUCCESS: Results
#1 or #2 in each target market 70-80% market share
SECRETS OF BRANDING
FIRST RULE OF BRANDINGIt is not about you; it is about the prospect &
customerSECOND RULE OF BRANDING
All customers (and prospects) are not created equal.
THIRD RULE OF BRANDING
Measurement is critical.
METRICS-DRIVEN BRANDS
MAIN LESSONS: Remember this!
“The purpose of business is not to make a sale, but to _____ and _______________.”
-- Peter DruckerLegendary management consultant
BRAND PLANNING: PLANKEY ELEMENTS I. Executive overview II. Market, product, business & competitive
review III. Situation analysis IV. USP (Unique Selling Proposition) V. Strategies, objectives, goals & tactics VI. Execution VII. Budgeting VIII. Timetables & responsibilities IX. Measurement, evaluation & feedback
MOST IM
PORTANT!!!
METRICS-DRIVEN BRANDS
BRANDING: Profitability imperatives All customers are not created equal Customers define brands based on their experience,
emotion & functionality Companies can no longer “position” brands
Brands are only tools to build customer equity Magnet to attract new customers Anchor to hold existing customers
Goal is profitability, not sales or market share Measurement is critical
Establishes accountability
RETENTION BRANDING
Retention pays! Satisfied customers tell 3-5 others about a pleasant
experience It can cost up to 10 times more to generate revenue
from a new customer than from an existing one A 5% retention rate increase can increase profits by 60-
100% Loyal customers who refer others generate business at
a very low or no cost
RETENTION BRANDINGUnhappiness costs! Dissatisfied customers tell 7-13 others Unhappy customers complain for up to 23 years! Negative word-of-mouth: 2X as much impact on
purchase intentions as positive word-of-mouth Make-goods/expediting are expensive Find “replacement” customers
RETENTION BRANDING
80/20 rule 20% of your customers account for 80% of your profits Knowing this is not as important as knowing WHICH
20% (as well as the bottom 15%) Conventional accounting only tells us profit from 100%
of the customers
Branding imperatives Identify & increase profitability of customers Make intelligent customer acquisition/retention
PROFILES IN BRANDING
INDUSTRY EXCELLENCE AWARDS 2004 Awarded by MITI in March 2005
Categories: Product excellence, export excellence, quality management
Special award -- Malaysian brand names Hoe Pharmaceutical Noor Arfa Batek Carotino
Special award -- Innovative product CCM Pharma Others
METRICS-DRIVEN BRANDSTRADITIONAL BRANDING• How profitable is this product? • How should I price this
product?• Are we doing enough new-
product development?• How can we extend the
product life cycle?• What is our share of market?
PROFITABLE BRANDING• How profitable is this
customer?• How should I price this
customer?• Are we doing enough
new-customer development?
• How can we extend the customer life cycle?
• What is our share of customer wallet?
SECRETS OF BRANDINGEXCELLENT RESOURCES
Ministry of Health Malaysia
MATRADE
Branding Association of Malaysia
