Have you ever stopped to consider why some brands have cult following while others competing in the same segment have none? Why are Starbucks and Krispy Kreme brands gaining such strong consumer preference while others competing in the same category foster very little consumer loyalty? Do you ever wonder why such brands such as Tide and Tetley dominate their respective categories, year over year, irrespective of the competitive environment? It is important now more than ever to develop an integrated brand strategy, i.e., a clear brand identity that is consistent across all consumer touch-points.
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Managing Brands
1. white paper | September 2009
Managing Brands
getting the most out of branding
2. white paper | September 2009 | Managing Brands | 1
Shikatani Lacroix is a leading branding and design firm located in
Toronto, Canada. The company commissions assignments from all
around the world, across CPG, retail and service industries, helping
clients achieve success within their operating markets. It does this
by enabling its clientsā brands to better connect with their
consumers through a variety of core services including corporate
identity and communication, brand experience design, packaging,
naming and product design.
About the Author
Jean-Pierre Lacroix, R.G.D., President and Founder of
Shikatani Lacroix
Jean-Pierre (JP) Lacroix provides leadership and direction to his
firm, which was founded in 1990. He has spent the last 30 years
helping organizations better connect their brands with consumers
in ways that impact the overall performance of their business. Mr.
Lacroix was the first to coin and trademark the statement āThe
Blink Factorā in 1990, which today is a cornerstone principle to how
brands succeed in the marketplace. JP has authored several
papers, has been quoted in numerous branding and design articles
and, in 2001 he co-authored the book āThe Business of Graphic
Designā which has sold over 10,000 copies. JP can be reached at
jplacroix@sld.com and you can follow his blog at:
www.belongingexperiences.com &
www.belongingexperiences.wordpress.com.
Other Articles and Books
The Belonging Experience
Not all Moments of Truth are Equal
Business of Graphic Design
3. white paper | September 2009 | Managing Brands | 2
Introduction
Have you ever stopped to consider why some brands have cult
following while others competing in the same segment have none?
Why are Starbucks and Krispy Kreme brands gaining such strong
consumer preference while others competing in the same category
foster very little consumer loyalty? Do you ever wonder why such
brands such as Tide and Tetley dominate their respective categories,
year over year, irrespective of the competitive environment?
It is important now more than ever to develop an integrated brand
strategy, i.e., a clear brand identity that is consistent across all
consumer touch-points.
The real challenge is to have a clear understanding on why a
consistent brand image and message is critical to how consumers
perceive your products or services and how this consistency leads
to purchase intent. In the following page, we will cover the
importance of a consistent brand, how to ensure this consistency
across every consumer touch point, how the branding process
works and to leverage this strategic to leverage the full impact of
your brand.
Therefore, the following topics will be covered:
1. The Competitive Brand Landscape
2. The Importance of Brand Consistency
3. Understanding Brand Style Elements
4. Brand Change
5. Evaluating the Need for Change
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The Competitive Brand Landscape
Current marketplace conditions have become increasingly
competitive as consumers are faced with more and more product
choice. Every year, companiesā rollout product line-extensions and
new products that compete with rivals for a share of consumersā
wallets.
In a world of visual clutter and confusion, companies with strong
brand position will stand out. Meanwhile, ineffective brand strategies
will serve as a textural backdrop that allows great brands to
succeed. An effective brand strategy helps consumers navigate
through the brand clutter and defines a brandās fit and
differentiation from competitors.
Out of competitive necessity, retailers have had to scrutinize
individual product performance in year over year sales, and
contributing margins. If products under-perform in sales volume or
sales frequency, they risk losing their shelf space placement. Private
label products, with higher contributing margins, have put additional
pressure on companies to develop their brand strategy.
If brand clutter and competitive retailer strategies arenāt enough,
consumers are becoming better informed and aware of their
purchasing decisions. The competitive landscape has shifted away
from value and quality marketing strategies to creating an emotional
link with consumers.
Companies need to understand the image that their brand conveys
and draw an emotional appeal to consumers based on the image. An
effective brand strategy helps define where a product brand fits and
its differentiation among competitors.
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The Importance of Brand Consistency
Overall customer impressions are the ultimate test of the quality of
the brand identity and its effective management across all-of-the
consumer brand touch-points.
The overall impression of a brand is created through the
comprehensive and systematic management of individual style
attributes, and styles and themes inherent in branding elements.
These elements, which consist of tone of communication, visual
cues, colors, shapes and hierarchy of communication, together
produce a coherent overall impression and image for any given
brand. We have found that marketing expenditures are wasted when
there is a perceived gap between the brand position and its
consistent execution across the marketing mix.
Effective brand consistency is based on ensuring that each of these
consumer interactions with the brand build on a clear personality
and positioning established by the brandās style attributes.
The brand style attributes are those elements that bind the brand
impression with consumers, irrespective of the medium or brand
touch point.
However, when should a brand evolve and change, and to what
degree of changes should be considered, are pivotal questions that
most marketers are faced within their careers? The effective
transition which is the result of a stronger alignment between the
brand position and its personification is predicated by a wide range
of factors, namely: level of change within the actual brand position,
the competitive environment, the degree of innovation within the
category, ingredient or performance improvements and the visibility
the brand has in the marketplace, specifically within the retail sector,
where actual purchase decisions are made.
To better understand the need for change in packaging, consistently
applied across the range of products, we need to have a better
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understanding of the key elements of a brandās style in addition to
the key factors driving the need for change.
Understanding Brand Style Elements
The critical factor in making any packaging change is the
importance of leveraging the brandās strengths while minimizing its
weaknesses. At Shikatani Lacroix, we group brand styles in three
groups, namely: core, detractors and enhancers.
Core elements of the brand consist of those key features that create
a strong positive link with consumers. This may consist of a
packaging format, a color or series of colors, style of imagery,
typographical treatment or a given icon/wordmark. These elements
either work as a group or as one dominate individual feature that
retains strong equities between the brand and consumers. Color is
one of the most important and strongest factor amongst these core
elements since forty percent of all communication consumers
absorb is visual, of which 80% is color and shape.
As consumers browse the shelf, they are seeking a dominant color
that links the brand to their emotional and rational perceptions. The
intensity and hue of the color in addition to its dominance on the
package help make that link between the consumer and their
brands. You will note that all great brands own a dominate color;
Tide owns Yellow, Tetley owns Blue, Delmonte owns Green,
Campbellās owns Red.
It is interesting to note that in some cases, the actual color of the
brand becomes its product name, as in the case of Labatt Blue,
Canadaās leading pilsner beer. Another core element is shape that
can be manifested in different approaches pending the brandās
product category or position in the marketplace.
For the beverage sector, it can become the actual shape of the
container such as the Absolute Vodka bottle were the advertising
only features its shape while allowing consumers to easily connect
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the shape with the brand due to its distinctiveness and consistent
approach. I wonder how effective would Absoluteās advertising be if
the bottle shape had not remained consistent over the life of the
brand.
Another approach in leveraging shape is the actual shape of the
label. Heinz has done an excellent job at creating strong brand
equity across all of its products by leveraging a distinctive shape,
consistently over the years. Although the shape has evolved, it has
retained a strong consistent element that has allowed consumers to
easily identify the brand within the cluttered shelf environment. In
some cases, the core element of a brand leverages both a color, a
distinctive shape and wordmark application.
The second style category for a brand is Detractors, also known as
passengers. They are there for the ride but do not provide any value
for the bran d. These may consist of design elements or claims that
worked well as the brand was evolving but which today are not
relevant or meaningful for consumers.
These elements actually get in the way of the effective
communication of the āCoreā elements of the brand or the ability of
fully leveraging the brandās āEnhancersā.
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Enhancers are elements that will take the brand to new heights. It
maybe the result of a product improvement, a packaging structural
change to allow better convenience or a usage change for ease of
use. However, the critical importance is to ensure that these new
features are properly communicated on the packaging.
In the case of Tetley Orange Pekoe, it was the introduction of round
tea bags that helped the brand grow its market share by 10 points
and gain the leadership role in the marketplace within a year.
Leveraging the fact that the tea bag format had changed was
pivotal and communication on the packaging played a critical role.
Most recently, the company has further leveraged the importance of
āRoundā by introducing a new line of canister packaging for its full
line of herbal and specialty teas, allowing consumers with a storage
device that leveraged the round tea bag while ensuring a high
degree of freshness (specialty teas are less frequently consumed,
hence the importance of freshness). The canisters were also easy to
stack for the retailer and consumers, allowing better shelf and
pantry management and in return greater penetration and facing at
retail for Tetley.
Evaluating the Need for Change
As outlined in the process section, evaluating the need and degree
of change is critical to the success of any re-branding program,
irrespective of the level of risk. The goal of any re-branding exercise
is to ensure that the packaging clearly communicates the right
brand impression that the marketer desires to achieve.
A lack of consideration of overall impressions may result in a
misinterpretation of the brandās perception. These, not properly
aligned impressions might not make sense when scrutinized by the
customer, or they may be seen as inconsistent, or as unattractive.
Confusion could ensue (Is this my brand or a new one?) and
negative impressions might arise (Does not reflect my self-image)
which would lead to a sever equity erosion.
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The need for change is predicated on the need for the packaging to
effectively communicate a meaningful product message that can be
classified in the following categories, in order of degree of change:
ā¢ Legislative changes such as the new nutritional labeling act
Ingredient changes such as the move away from transfat
ingredients
ā¢ Product improvements (performance, usage, application)
ā¢ Revitalization (new photography, positioning alignment)
ā¢ Line extension (ability to leverage equities of the existing brand
in new directions)
ā¢ Re-launch (brand is declining and needs significant
improvements)
ā¢ New Product
Consumer research, SWOT (Strengths, Weaknesses, Opportunities
and Treats) Analysis, Competitive Audit, Store Audits, Trends
Analysis, Regulatory Review, Industry Trends, Packaging
Manufacturing Trends, Consumer Segmentation Studies are all tools
which will help define the rate and level of change for your brandās
packaging.
4 Steps to Developing a Winning Brand Strategy
The following four steps outline the process to develop a winning
brand strategy. Although the diagram below depicts a linear flow,
the reality is that the process is circular, starting with Brand
Discovery and ending back at the same stage once the program is
rolled out. Since a brand identity reflects rational and emotional
appeal, it is important to ātweakā your identity as trends, business,
and social environments change.
Step 1: Brand Discovery
A successful brand is made up of a composite of six elements, all
equally important. Although the six elements are not listed in any
particular order of importance, it is important to review your brand
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A great brand has emotional appeal ā it reflects and mirrors the
rational and emotional appeal of a product. Research has shown that
nearly half of all consumer purchase decisions are emotionally
driven. Emotional appeal is the deep-rooted connection between a
brand and a consumer that marketers need to cater to while
ensuring the brand delivers differentiated and meaningful fulfillment.
Determining the emotional appeal of a brand is most likely the
hardest thing to define. In most cases, the emotional appeal is driven
by the consumersā perception of an emotional fulfillment such as
adding satisfaction, happiness, or comfort to oneās daily life.
Effectively associating an emotional appeal with your brand will
foster an integrated brand strategy. An effective brand strategy
ensures that there is design consistency in the brand message. The
goal is to be consistent in tone, brand personality, and consumer
cues at every consumer touch-point. Evaluate your brandās design
consistency and ensure that advertising, communication and brand
messaging is not fragmented.
And finally, the sixth element in brand discovery is a defined brand
position. The key is to define a clear and concise message reflecting
your brandās value. A clear position will assist your customers in
differentiating your product from the competition.
Step 2: Brand Development
Brand Development is the exercise of putting your data together,
doing the analysis, and visualizing potential brand directions. There
are four steps involved in Brand Development. First, put together
background data using SWOT Analysis (strengths, weaknesses,
opportunities, threats) and 360 Brand Report (evaluate your brand
values among all levels of your organization, i.e., hiring practices are
evaluated with your brand).
Background analysis will provide a framework with information on
competitors in your product category, information on indirect
competitors, as well as analysis of your brand at all consumer touch-
12. white paper | September 2009 | Managing Brands | 11
points. Reviewing background information is essential in revealing all
the possible options for brand development.
Strategic Insight is the second step in Brand Development. Review
your key findings from the Brand Discovery process to reveal your
productās opportunities. What are your brandās differentiating
values? Where are the brand gaps? Where does your product have
the potential to grow forward? Strategic insight reveals your brandās
merits and unique positioning.
Once you have discovered all there is to know about your brand and
identity needs, the third step consists of putting your creative mind
to work in brand ideation and brainstorming sessions.
This Ideation Process may cover potential brand visions or positions
for the organization, brand personality options, or potential names.
Both obvious and revolutionary positions should be looked at to
strike the right balance between innovation and risk. Developing
brand mosaic boards will help visualize the rational, emotional, and
cognitive elements of different brand options. Each mosaic board is
created to convey a different positioning statement by using
different themes, colors, texture, and words.
Brand Development culminates with Consumer Insight: the
quantitative and qualitative process of conducting consumer
research. Research is a great tool to gain consumer insights and
helps define brand identity and personification. Web research and
consumer focus groups are two examples of consumer insight.
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Step 3: Brand Creation
From your research and analysis, you may have narrowed your
brand option to 2 or 3 positions that can work well. Brand creation
focuses on the challenge of personifying the brand ā looking at how
consumers would see the brand in the real world or the retail
environment. Designing the logo, packaging configurations, web
interface, and retail shopping environments are all examples of
personifying packaging, web interface
Brand personification continues to be modified through research in
the retail environment until the range of brand options is narrowed
into a final direction. The final brand position includes management
and legal approvals and is endorsed by consumers. The amount of
overall research on your productās brand is in direct proportion to
the risk or size of the challenge of the branding exercise.
Step 4: Brand Validation
The main emphasis of Brand Validation is to continuously refine and
update a productās brand strategy. There are four strategies to help
measure the validity of your brand. The first, Market Launch, is
reviewing a new brandās performance upon entry into the
marketplace. Brand Tune-up is another strategy that validates
established brands. It is the ongoing process of modifying your
brandās personification, position, and architecture. A product brand
is a living identity that interacts with people and mirrors their
aspirations. A brand tune-up will enable brands to evolve as peopleās
preferences and tastes change and develop. Consumer Validation is
a third validation strategy. Consumer Validation is a process that
happens throughout the brand design exercise. Brand refinement
can be triggered by customer feedback and data analysis.
Compiling Branding Documents is the final step in the validation
process. By assembling design specs, and standards at the end of a
branding strategy exercise, it ensures there is design consistency
across all platforms.
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Other Measures - in addition to brand validation, a successful brand
strategy should be continuously measured based on sales, purchase
intent (consumer research), product preference (consumer
research), shelf impact, and key attribute analysis and how these
change over time. Performance measurement will provide additional
insight for brand updates.
Conclusion
You have a split second to connect with consumers and deliver your
brand message. Your productās brand strategy is what will set your
product apart in a relevant, meaningful, and differentiated way.
Companies that fail to do this will eventually get lost in the clutter
and serve as a backdrop to brands that stand out and succeed.
The most important point to remember is to take the brand strategy
process seriously. Make time commitments and resource allocations
to review the relevance of your brand strategy on a yearly basis.
Great marketing is not only about budgets and operating plans, but
being focused on the big picture. Ensure you are constantly
evaluating your brandās position and asking a key question: Is my
brand still connecting with my customers and why?
For more information, contact:
Jean-Pierre Lacroix, President
Shikatani Lacroix
387 Richmond Street East
Toronto, Ontario
M5A 1P6
Telephone: 416-367-1999
Email: jplacroix@sld.com