BMA Chicago - Forget Brand Preference, Win the Brand Relevance War

1. Forget Brand Preference Win the Brand Relevance Battle DAVID A. AAKER Vice Chairman, Prophet Blog: davidaaker.com BMA Chicago October, 2012 Proprietary and confidential Do not distribute

2. Brand Market Relevance Dynamics Brand Relevance 2

3. Asahi-Kirin Beer War Brand Relevance 3

4. The Computer Industry Minicomputers Network Workstations Graphic Workstations Build to Order PCs Brand Relevance 4

5. Customer Decision Process Brand Relevance Brand Preference Select Product Determine Category or Brands Select Brand to Buy Subcategory To Consider SUV Audi BMW BMW Mercedes-Benz Brand Relevance 5

6. Routes to Winning Brand Preference Brand Relevance Competitor Competitor Brand Brand Winning VS. Means Not Not Preferred Considered Brand Relevance 6

7. Innovation Continuum Innovation Incremental Substantial Transformational Offering Noticeable Impact New Category Game Changer Enhancement On Brand Preference Or Subcategory Online Shipping CORNING Gorilla Glass Brand Relevance 7

8. Test—New Category/Subcategory? Can we deliver? Is there a “must have”? Business worthwhile? Legs? Brand Relevance 8

9. The Pay Off Brand Relevance 9

10. Transformational Innovation Brand Relevance 10

11. The Pay Off 108 Business launches: Those creating new categories or subcategories: • 14% of sample • 38% of revenue • 61% of profits McKinsey Study: 1,000 firms, 40 years • New entrants • Return premium over average for their industry • First year 13% • 3% in fifth year • 1 % in tenth year New Product Success Correlated with Differentiation Brand Relevance 11

12. Defining Categories/Subcategories Applications Shared Interest Values that connect Components to systems Augmented relationship Brand Relevance 12

13. Create Barriers Execute over the top Continuously innovate Nano Shuffle Touch iPad Be the Exemplar Branded differentiator Brand Relevance 13

14. The Power of Branding Innovations OuterStyle OuterStyle Alpine Class Fill Brand Relevance 14

15. Branded Feature Brand Relevance 15

16. Branded Technology Caterpillar ACERT Emission Reducing Diesel Engine Technology Brand Relevance 16

17. Branded Service Brand Relevance 17

18. Branded Customer Interaction Dell Community StudioDell Brand Relevance 18

19. “You do not merely want to be considered just the best of the best, You want to be considered the only one who do what you do.” Jerry Garcia, The Grateful Dead Brand Relevance 19

20. Relevance Threat Lose Brand Relevance No Longer Make What Lose Energy Have Compelling Customers Are Buying & Visibility Negative Brand Relevance 20

21. Stick to Your Knitting Brand Relevance 21

22. Parity Brand Relevance 22

23. Reposition Hunting, fishing, Outdoors camping Brand Relevance 23

24. Reposition – “Products” to Delivering “Solutions” The Solutions Journey Starting Point Commodity Commodity Value Added Services System Integrated + Free Products Services/ Products Services Products & Services Products Products Transition Transition Solutions Solutions Deck Title Proprietary and confidential. Do not distribute. 24

25. Leapfrogging Brand Relevance 25

26. Relevance Threat Lose Brand Relevance No Longer Make What Lose Energy Have Compelling Customers Are Buying & Visibility Negative Brand Relevance 26

27. The Decline of Brands Brand Asset Valuator •40,000 brands •44 countries •70 metrics •15 years Trustworthiness down 40% in 13 years Quality perception down 24% in 14 years Awareness down 20% in 13 years Brand Relevance 27

28. Energy Interesting/exciting Involving/engaging Innovative/dynamic Passionate/enthusiastic Brand Relevance 28

29. Extend the Brand • Body Wash with Nutrium • Facial Core Cleanser • Antiperspirant & Deodorant • Shampoo with Weightless Moisturizer • Nutrium Beauty Bar • Men & Care $200M 1990 Brand Relevance 29

30. Avon--Branded Program Raised $640 million since 1992 Educated 100 million women Brand Relevance 30

31. Branded Energizers NASCAR Brand Relevance 31

32. Relevance Threat Lose Brand Relevance No Longer Make What Lose Energy Have Compelling Customers Are Buying & Visibility Negative Brand Relevance 32

33. Remove a Negative Brand Relevance 33

34. Brand Market Relevance Dynamics Brand Relevance 34

35. Forget Brand Preference Win the Brand Relevance Battle DAVID A. AAKER Vice Chairman, Prophet Blog: davidaaker.com BMA Chicago October, 2012 Proprietary and confidential Do not distribute

Notas del editor

DHL Web Shipping ======= Online Shipping Solutions especially for companies Ability to book, track, and manage express shippings Includes label printing mechanism CORNING Gorilla Glass ======= Glass specifically engineered for the use in smartphones It is thin, light and extremely damage-resistant Developed in the 1960, but it came to success with the use in the first iPhone as Steve Jobs convinced the Corning CEO to start producing it It is currently used in over 600 million devices (smartphones, tablets, etc) Product videos: http://www.corninggorillaglass.com/#videos
Sony Erricson struggled after Apple released it ’s iPhone in the third quarter of 2007 Overall the handset shipments fell from 30.8M in 2007 to 8.1M in Q1 2011 They failed to compete in the areas of innovation and usability against Apples iOS and Googles Android and weren ’t able to position themselves with a well equipped smartphone. Thus, they were not in the considerationset in a rapidly growing sector In 2011 Sony aquired Ericssons stake and completed the acquisition in Febr. 2012
Sony Erricson struggled after Apple released it ’s iPhone in the third quarter of 2007 Overall the handset shipments fell from 30.8M in 2007 to 8.1M in Q1 2011 They failed to compete in the areas of innovation and usability against Apples iOS and Googles Android and weren ’t able to position themselves with a well equipped smartphone. Thus, they were not in the considerationset in a rapidly growing sector In 2011 Sony aquired Ericssons stake and completed the acquisition in Febr. 2012
The Dove story from 200 million to over 2 billion by extending the brand to other products and countries.
Sony Erricson struggled after Apple released it ’s iPhone in the third quarter of 2007 Overall the handset shipments fell from 30.8M in 2007 to 8.1M in Q1 2011 They failed to compete in the areas of innovation and usability against Apples iOS and Googles Android and weren ’t able to position themselves with a well equipped smartphone. Thus, they were not in the considerationset in a rapidly growing sector In 2011 Sony aquired Ericssons stake and completed the acquisition in Febr. 2012

BMA Chicago - Forget Brand Preference, Win the Brand Relevance War

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BMA Chicago - Forget Brand Preference, Win the Brand Relevance War

Notas del editor