Beruflich Dokumente
Kultur Dokumente
OF BRAND
BUILDING
STRATEGIES, TIPS & TECHNIQUES
Nick Wreden
Nickwreden@gmail.com
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
What is a brand?
Logos?
TV?
Advertising?
Expensive?
Brochures?
International?
SuperBrand award?
Positioning?
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.
BRANDING PRINCIPLES
MYTH
You need a big budget to
brand
REALITY
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 PRINCIPLES
MARKETING v. BRANDING: Which is which?
Marketing
Encourages firsttime 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
Customer
economy
(1996-2007)
Im
me
dia
cy
y/s
erv
ice
Qu
alit
on
ati
liz
Ad
ve
rt
a
on
Sales
rs
Pe
Metrics:
Databases
n
tio
Driver:
Marketing
Marketing
Dept.dept.
Sell what
customers
buy
ra
eg
Market research
nt
s/i
Sell what
we make
Demand
economy
(2008-??)
es
oc
Pr
g
nin
itio
os
P
is in
g,
etc
.
Mass
economy
(1920-95)
Provide
customer
solution
Real-time enterprises
Organization
Supply chain
Profitability
Relationship depth
BRANDING PRINCIPLES
Product
Strategy
Targeting, Positioning
Pricing
Strategy
Promotion
Strategy
Place
Strategy
Company-driven
Old
Brandi
ng
Product Development
BRANDING PRINCIPLES
DEFINE VALUE
Understand
competitors
Segment
customers
Sense market
trends
Target
profitable
segments
Understand
customers
Identify
opportunities
Craft value
propositions
Validate value
propositions
REALIZE
VALUE
SUSTAIN
VALUE
Develop
offerings
Improve
retention
Meet
customer
demands for
economic,
experiential,
emotion value
Increase
customer,
product &
account
penetration
Measure
value
Personalize
relationships
Customer-driven
SENSE VALUE
BRANDING PRINCIPLES
Strategic
BRANDING:
Planning
priorities
Branding
Customer
Ads,
PR,
etc.
FAQ:
How long
does it
take to
establish
a brand?
BRANDING PRINCIPLES
BRANDING: 4 types
Acquisition branding
Targeting & segmentation
Retention branding
purchasing more
Brand penetration
Customer, account, product
Advocacy
Get customers to sell to
others
Acquisition
(Ads, PR,
etc.)
Retention/
recovery
(Reduce
defection,
loyalty)
Brand
penetration
Advocacy
(word of
mouth)
P
R
O
F
I
T
S
!
BRANDING PRINCIPLES
BRANDING: Acquisition vs. retention
The purpose of business is not to make a
keep a customer
make and _______________.
sale, but to _____
-- Peter Drucker
Legendary management consultant
BRANDING PRINCIPLES
BRANDING: Acquisition vs. retention
Acquisition
Dedicated staff
Average acquisition cost:
$113
Cost-to-serve higher
Price sensitive
2/3s of new buyers fail to
make repeat purchase
YET: 80-90% of
marketing budgets
Retention
No dedicated staff
Cost-to-serve lower
BRANDING PRINCIPLES
BRANDING: Acquisition vs. retention
ACQUISITION VS. RETENTION
Investment
Revenue
$1 acquisition
$5
$1 quality, value,
communications
(help retention)
$60
Creative Good
* Michigan State
Business School
BRANDING PRINCIPLES
BRANDING: Acquisition vs. retention
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%
50%
10-15%
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
MALAYSIA BOLEH!
BRANDING: Secrets of success
Long-term commitment
We have always looked at this as a longterm strategy; branding is not something that
is done overnight.
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
Web
Promotion
Training
MALAYSIA BOLEH!
SECRETS OF SUCCESS: PR
Variety of targets
Local & monthly
Well-targeted message
Open shoes
Overweight
Education
Reason to
No moisture, dry out
buy from
Consequences
customer
Infection
viewpoint
Doctor care
MALAYSIA BOLEH!
SECRETS OF SUCCESS: Advertising
Testimonial theme
Targeted message
Reflects target customer
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
MALAYSIA BOLEH!
SECRETS OF SUCCESS: Web
Good design
Easy to navigate
Easy to read
Contact info
Responsiveness
Current
MALAYSIA BOLEH!
SECRETS OF SUCCESS:
Promotion
Promotion/contest
1 ct. diamond
Prospect involvement
Match slogan
Leveraged with PR
I have been using
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 BRANDING
It is not about you; it is about the prospect &
customer
METRICS-DRIVEN BRANDS
MAIN LESSONS: Remember this!
The purpose of business is not to make a
sale, but to _____ and _______________.
-- Peter Drucker
Legendary management consultant
!!
!
T
N
A
T
R
O
P
T
S
O
M
IM
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
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
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 60100%
Loyal customers who refer others generate business at
a very low or no cost
RETENTION BRANDING
Unhappiness costs!
RETENTION BRANDING
80/20 rule
Branding imperatives
PROFILES IN BRANDING
INDUSTRY EXCELLENCE AWARDS 2004
Awarded by MITI in March 2005
Categories: Product excellence, export
excellence, quality management
METRICS-DRIVEN BRANDS
TRADITIONAL BRANDING
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 BRANDING
EXCELLENT RESOURCES
Ministry of
Health
Malaysia
MATRADE
THANK YOU!
QUESTIONS?
Nick Wreden
Nickwreden@gmail.com