GrowSmarter 08MR

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company 1
How to Leverage the Power of Branding to Build a Stronger Company
Grow Smarter
Newman & Wells LLC
2 0 0 8 N e w m a n & W e l l s L L C | 6 5 E n t e r p r i s e | A l i s o Vi e j o C A 9 2 6 5 6 | T : 9 4 9 . 2 3 3 . 7 5 8 8
w w w. n e w m a n w e l l s . c o m
v 2.0 | January 2008
2 0 0 8 N e w m a n & W e l l s L L C | 6 5 E n t e r p r i s e | A l i s o Vi e j o C A 9 2 6 5 6 | T : 9 4 9 . 2 3 3 . 7 5 8 8 w w w. n e w m a n w e l l s . c o m
Introduction
G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company
Grow Smarter is more than a catchphrase. It is a comprehensive system for planning, executing and tracking corporate branding campaigns. Based upon nearly twenty years of experience helping emerging companies build powerful brands, our system utilizes proven concepts from a variety of experts Reis & Trout, Geoffrey Moore, and Michael Porter, to name a few. We hope you will find the ideas contained in this guide useful, and we welcome your feedback. Your Brand is a Promise Your brand is not a logo, or an advertisement. Your brand is a promise, made to your customer, that experience will meet expectations. Powerful brands are built upon a complex mix of customer expectations, and their assumptions of how your product will help them achieve some desired aim. In every market you will find groups of customers who prefer different features and benefits, and who see themselves in a particular brand. (Think: Coke v. Pepsi. Its really not about the taste of the drink, is it?) Brand is too often confused with corporate identity and is not treated as the valuable corporate asset it truly is. Corporate branding is a business process one that is planned, strategically-focused and integrated throughout the organization. Branding establishes the direction, leadership, clarity of purpose, inspiration and energy for a company.
Strategic Planning & Research
Overview A disciplined planning process fosters creativity in business problem solving. Frenzied activity is no substitute for sound strategy, and pursuing myriad opportunities more quickly than competitors does not guarantee longterm success. The chart below depicts the cumulative nature of brandbuilding as a discipline practiced over time, and it summarizes our approach to helping companies build long-term value through the use of effective processes and programs.
Customer Value Modeling All companies and products should develop in response to a perceived customer need. The Customer Value Model (CVM) is a tool for creating a clear picture of customer needs. Developed originally by execitves at IBM, CVM states product planning and promotional development should start with the customers needs and work back toward company capabilities. Fairly basic stuff for any seasoned executive, you might say. But how many times have we seen good companies fail to follow this simple rule?
Discover your customers needs and wantsthrough qualitative and quantitative research, such as direct interviews, customer forums and other methodsand turn those needs into profitable offerings. The diagram below depicts the supporting role of process and infrastructure in delivering the ideal customer experience.
Product Development Dont Just Sell a Product. Offer a Customer Experience Product planning and development should start with a needs-based assessment, as described in the previous section. From this model, product managers and engineers can determine capabilities and specifications. And while your product (or service) must meet certain performance requirements to be competitive, its perceived value may have little to do with actual capabilities. As a marketer, you are in the business of selling a customer experience, and that requires an understanding of the motivations and desires of your target audience. The pyramid below depicts the increasing level of sophistication required to build a powerful brand, based on tangible and intangible product qualities. Ask yourself the questions posed below as you develop your product.
Revenue Modeling Estimating the Profitabilty of Market Opportunities Building a picture of the potential revenues for a new product or service is a key step in the strategic planning process. More specifically, modeling how different prices and distribution methods may affect profitability helps shape business plans. Start with the creation of several different revenue models, using cash flow profiles based on classic profit dynamics. Variables you can manipulate include: price, R&D investment, marketing budget, distribution methods, etc. See the chart and formulas below for one example of how to calculate your anticipated ROI.
Market Forces Assessment The Foundation for Marketing Success Market Forces Assessment, a key component of strategic business planning, involves more than reviewing the efforts of direct competitors. The profit potential of an industry or market depends on the collective strength of the market forces created by direct competitors, customers, suppliers, potential entrants, and substitute products or services. You create a 360-degree view of your companys situation by studying the strengths and weaknesses of market participants in each of the categories.
The market forces diagram above, based upon theories of Michael Porter, and adapted from Market Driven Strategy: Processes for Creating Value, describes the relationships between the forces that affect your companys market performance.
Customer Profiles & Market Segments
Introduction Identifying patterns within data is a quintessentially human trait. Yet the daily deluge of information is overwhelming, and often prevents executives from assimilating anything meaningful. In this section, you will find methods to gather, sift and analyze data to provide you with the insights and strategies for business success. Ideally, we recommend a regimen of regular information gathering, in a mix of quantitative studies and personal feedback. A report from a reputable industry analyst can alert you to business trends and competitor moves, while a first-person focus group provides invaluable insights into customer sentiment. Taken together, multiple data streams can provide you with a complete picture of your operating environment. From there, you can develop your ideal customer profile, and your marketing database, the foundation for every measurable marketing campaign.
Primary Research Customer Forums & Focus Groups Customer feedback is the most direct method of evaluating a market, and yet it is often overlooked or underutilized by companies. One of the best methods for learning how your products and company are viewed is through a focus group, comprised of customers, vendors, partners, employees, or even a mix. The main purpose of focus group research is to draw upon respondents attitudes, feelings, beliefs, experiences and reactions in a way in which would not be feasible using other methods, for example observation, oneto-one interviewing, or questionnaire surveys. Compared to individual interviews, which aim to obtain individual attitudes and beliefs, focus groups elicit insight and data from the interaction between participants. Secret Shopper Programs Secret Shopper programs can be especially effective tools to measure sales channel (dealer and distributor) performance. Each secret shopper program has unique goals, but all share the same basic requirement: Determine how well the sales channel is performing its stated job. To generate accurate and useful results, we recommend a program that utilizes enough shoppers to cover your entire geographic market, as well as redundancies in key markets. Activities measured include: Adherence to corporate guidelines Handling of customer inquiries Outbound marketing campaign performance Lead distribution and sales process Closing techniques and ratios Competitor tactics and intelligence
Customer Modeling There are two ways to profile customers in a database: demographics and behavior, and no single technique gives a composite view of the customer. Customer profiling is therefore a collective set of analyses that best describe your customers. Techniques include: Lead Management Milestones Customer Lifetime Value analysis RFM Modeling Demographic Cluster Coding Risk/Revenue Matrix
10
Positioning, Branding & Messaging
Introduction Marketing claims need to be more than empty platitudes. They must be verifiable statements of who you are which means they must be true. That starts with a credible corporate position, or brand, and is extended with channel-specific messaging. After all, your direct-sales marketplace has some totally different concerns than do your distribution channels. What types of messages matter to customers? In business-to-business sales relationships, for instance, your customers care more about the company theyre doing business with than they do about the product. The product is just a requirement to entry. Once you demonstrate you have a product, then the real process of selling begins: delivery times, financial strength, service and support, partnerships, product enhancement plans (and more) all play critical roles in the process. The psychological landscape within customers minds is where the principles of branding, and especially positioning, really play a pivotal rolein framing the relationship between your company and your customers.
11
Positioning Start by assessing your companys strengths, finding core competencies that are relevant to the marketplace, and finding those that have not been established as a position by a competitor. The criteria upon which consumers evaluate a companys offering vary between industries, which is why consumer interviews and other primary research are critical.
Performance Perhaps many customers in a chosen market are attracted to a product that offers premium features at a premium price, so long as the product performance, service or exclusivity reflects the premium price tag. Many market leaders command a premium price because they are perceived as having the best-performing product. In fact, customers are reacting to the total customer experience, not just the product. Product performance often attracts early adopters, and creates intensely loyal evangelists. Intimacy And that leads to the next branding concept: Being known for customer service, also known as customer intimacy, can be a particularly profitable, and stable, position. Customers have shown the greatest loyalty to companies who make a consistent effort to know their needs, and respond with products and services that meet those needs. In fact, those companies are more likely to retain their customers when things go wrong as they always do. Price Finally, a discussion of price. Price is never the foundation upon which profitable brands are built. Low price does not always equal high value and most customers know this. In fact, the larger, more strategic the purchase, the less likey price will play a pivotal role in the final decision. Of course, while price may not be a sound basis upon which to develop a market position, it must be considered when developing a product or service.
Conclusion
As we stated at the outset of this paper, Grow Smarter is a proven system for producing predictable results. Like any other system, it is most effective when you follow each step carefully and completely. We hope you have found these ideas useful, and we welcome your feedback. On the next few pages you will find several case studies, examples of how Newman & Wells has put into action the principles discussed in this paper. Each of the clients profiled below succeeded in its chosen market by focusing on the fundamentals of brand building by growing smarter.
13
Case Studies
Vision Solutions Irvine, California
Corporate Branding & Marketing From 1996 through 1999, we played a key role in the launch and promotion of Vision Solutions, a high-availability software and services provider. Responsibilities included identity, positioning, collateral, product packaging, advertising, direct marketing, and channel development. The result: Vision Solutions achieved CAGR of 215%, and earned a spot in D&T Fast 50 and Inc 500 Fasest Growing Companies lists four years in a row. The company was sold at the end of 1999 to a private buyer for cash.
Case Studies
JVC Information Products Irvine, California
CD-Recording Product Marketing An under-served reseller channel was hungry for CD-R solutions. Retail stores were ready for packaged products at the right price. But JVC had no clear profile of their ideal user. We started by positioning JVC as the #1 selling drive worldwide, to combat users fears of purchasing a device that might be non-standard and have technical problems.
Our research identified a power user segment, and we attracted them with a special JVC/Macromedia bundle solution. Next, we helped JVC source CD playback devices, including a 7-disc changer and 200-disc library, from Nakamichi (another one of our clients) to create a complete solution for a compelling reseller offer. The 1995/96 JVC promotional campaign leveraged the introduction of Windows 95, running ads and PR in over a dozen PC and IT publications. Aggressive ads incorporated classic direct-response mechanisms, such as limited offers, bundles and promotional pricing. To further support the retail effort, we designed retail packaging that reflected the utilitarian nature of CD-R.
15
Case Studies
Superconductor Technologies Santa Barbara, California
Corporate Communications In 2001 Superconductor Technologies, a leading wireless network performance enhancement company, achieved all its operating objectives and showed a profit. This accomplishment was due in large part to the unwavering focus of its entire team. We chose Focus as the theme of the 2001-2002 marketing campaign, to reflect the relationship between STIs culture and their products unique abilities to strengthen a wireless signal by focusing its energy. The result: STI completed a $30 million private placement, and consolidated its leadership position by acquiring its biggest competitor in 2002.
16
Principals
Gregory Newman Gregory Newman began his career as a copywriter and illustrator serving national agencies such as Chiat Day, dGWB, DMB&B, Foote, Cone & Belding, and clients such as Proctor & Gamble and Kelloggs. From 1991 to 1993 Mr. Newman managed marketing communications at Procom Technology, a provider of network-attached storage solutions, where he helped prepare the company for a successful IPO. He left Procom Technology to found Apollo Communications, an advertising agency serving technology clients such as JVC, Vision Solutions, Emulex, CMS Peripherals, Rainbow Technologies, Alpine Electronics, and others. In 1999, Mr. Newman sold his agency to venture capital firm Catalyst Capital, and joined Island Data, a customer support ASP, as part of an executive team recruited with Series A funding. He implemented processes that focused the fledgling company, as evidenced by a 569% annual revenue increase and honor as Top 100 Companies to Watch in 2001. Upon leaving Island Data, Mr. Newman founded Newman & Wells, a venture management firm for early-stage and high-growth companies. Mr. Newman holds a B.A. from the University of California, Santa Barbara, and a J.D. from Chapman University School of Law. He is an active member of the bar in California. Cynthia Wells With over twenty years experience in professional accounting, including seven years managing the mergers and acquisitions accounting team of a Fortune 500 conglomerate, Ms. Wells brings a level of financial controls and procedures to Newman & Wells not typically found in a boutique management services firm. Ms. Wells started her career in 1982 as an analyst at General Dynamics in San Diego. In 1995, Ms. Wells joined Coldwell Banker (now Cendant), where she led the accounting team responsible for over $1 billion in annual revenue. Ms. Wells attended San Diego State University and California State University, Fullerton.
17
Bibliography
Day, George S. Market Driven Strategy: Processes for Creating Value. New York, The Free Press, 1990. Hughes, Arthur M. Strategic Database Marketing. New York, McGraw-Hill, 1994. Ryans, Adrian, Roger More, Donald Barclay, Terry Deutscher. Winning Market Leadership: Strategic Market Planning for Technology-Driven Businesses. Toronto, John Wiley & Sons Canada, Ltd., 2000. Reis, Al, Jack Trout. Positioning. New York, Harper Collins, 1973 Kaplan, Robert S., David P. Norton. The Strategy Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Boston, Harvard Business School Press, 2001. Gosden, Freeman F., Jr. Direct Marketing Success: What Works and Why. New York, John Wiley & Sons, 1985. Whiteley, Richard C. The Customer Driven Company. Reading, AddisonWesley Publishing, 1991. Siebel, Thomas, Michael Malone. Virtual Selling: Going Beyond the Automated Sales Force to Achieve Total Sales Quality. New York, The Free Press, 1996. Caples, John, Fred E. Hahn. Tested Advertising Methods. New York, Prentice Hall Trade, 1998.
18
2 0 0 8 N e w m a n & W e l l s L L C | 6 5 E n t e r p r i s e | A l i s o Vi e j o C A 9 2 6 5 6 | T : 9 4 9 . 2 3 3 . 7 5 8 8
w w w. n e w m a n w e l l s . c o m
T: 949.233.7588 www.newmanwells.com Newman & Wells LLC 65 Enterprise Aliso Viejo CA 92656

GrowSmarter 08MR

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

GrowSmarter 08MR

Hochgeladen von

Copyright:

Verfügbare Formate

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company 1

How to Leverage the Power of Branding to Build a Stronger Company

Newman & Wells LLC

v 2.0 | January 2008

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company

Strategic Planning & Research

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company 4

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company 5

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company 6

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company

Customer Profiles & Market Segments

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company 9

Positioning, Branding & Messaging

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company 12

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company

Vision Solutions Irvine, California

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company 14

JVC Information Products Irvine, California

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company

Superconductor Technologies Santa Barbara, California

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company

G rowi ng Sm art e r: H ow t o Le v e rage t he Power of Branding to Build a Stronger Company 19

Das könnte Ihnen auch gefallen