Brand Genius The Yin And Yang Of Creating Extraordinary Brands Peter Fisk Sep 08
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Transcript of Brand Genius The Yin And Yang Of Creating Extraordinary Brands Peter Fisk Sep 08
The yin and yangThe yin and yangof creatingof creating
extraordinaryextraordinaryextraordinaryextraordinarybrandsbrands
BrandBrandGeniusGeniusBrandGenius
The opportunity to The opportunity to growgrow
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Markets are incredibly complex and competitive
• Competitive intensity has tripled in most markets• Typical segmentation models now have 400 clusters• Product lifecyles have reduced by 70% over last decadeProduct lifecyles have reduced by 70% over last decade
Customers are much more powerful than ever
• Consumers now receive 1500 messages per day• 54% of consumers have registered for “do not call”• Purchase decisions are typically made in 2.6 secondsy y
Shareholders demand higher, faster returns
• Intangible assets make up 70% of Fortune 500 value• 60% of brand investment impacts future years• Investment timeframes fallen to 9 months
The challenge to The challenge to innovateinnovate
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The power of The power of customerscustomers
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The unlimited The unlimited opportunitiesopportunities
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The expectation that you can do The expectation that you can do betterbetter
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The need to do The need to do moremore
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The speed of The speed of changechange
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The need think The need think differentdifferent
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E h iE h i hflhflas
hflo
was
hflo
was
hflo
was
hflo
wEnhancing Enhancing cashflowscashflowsFor example byFor example by•• Sustainable price premiumsSustainable price premiums•• Distribution efficiencyDistribution efficiency
C lliC lliCa
Ca
Ca
Ca
Accelerating Accelerating cashflowscashflowsFor example by:For example by:
•• Cross sellingCross selling
For example by:For example by:•• Faster market adoptionFaster market adoption•• Partnership marketingPartnership marketing•• New payment methodsNew payment methods
Reducing uncertaintyReducing uncertaintyFor example byFor example by•• Strong customer loyaltyStrong customer loyalty•• Strong customer loyaltyStrong customer loyalty•• Long NPD pipelineLong NPD pipeline•• Brand extensionsBrand extensions
FutureFuture
The drivers of The drivers of valuevalue
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The scope of The scope of opportunityopportunity
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Thinking intelligently and creativelyThinking intelligently and creatively
• Where are the most profitable opportunities?• How to unlock the real value of your brands?• Which products and customers to focus on?• Which products and customers to focus on?
Balancing market and business impact
• How to develop compelling and profitable propositions?• What is the optimal channel and communication mix?• How to price for profitability and volume?
Delivering short and long-term performance
• Where to allocate budget and resources for best return?• What is the economic value of brands and innovation?• How to report performance to shareholders?
The yin and the The yin and the yangyang
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The yin and the The yin and the yangyang
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AppleApple: The yin and the : The yin and the yangyang
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FacebookFacebook: : The yin and the The yin and the yangyang
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Tata: Tata: The yin and the The yin and the yangyang
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VirginVirgin: The yin and the : The yin and the yangyang
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Concept Concept ZoneZoneZoneZone
Impact Impact ZoneZone
Concept Concept ZoneZone
Creative Creative ZoneZone
Future Future ZoneZone
The 4 zones The 4 zones of value innovationof value innovation
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Where are the Where are the best opportunities?best opportunities?
What are the What are the creative possibilities?creative possibilities?
Which are theWhich are thebest innovations?best innovations?
How much valueHow much valuewould it create?would it create?
Concept Concept ZoneZoneZoneZone
Impact Impact ZoneZone
Concept Concept ZoneZone
Creative Creative ZoneZone
Future Future ZoneZone
Identify markets andIdentify markets and Focus creativityFocus creativity More rigorouslyMore rigorously Value impactValue impactIdentify markets and Identify markets and and products of mostand products of most
potential valuepotential value
Focus creativity Focus creativity where it can havewhere it can have
most impactmost impact
More rigorouslyMore rigorouslyevaluate and connectevaluate and connect
the best ideas the best ideas
Value impactValue impactis more measurableis more measurable
and greaterand greater
The 4 zones The 4 zones of value innovationof value innovation
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FutureFutureFuture Future ZoneZone
Future ZoneFuture Zone11
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Future ZoneFuture Zone: Where are the future opportunities?: Where are the future opportunities?11
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Future Zone: Embedded1
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Future Zone: Where are the adjacent markets?1
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Future Zone: Networked1
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Hot Spots Cool Places White Spaces Black HolesHot Spots Cool Places White Spaces Black HolesHot Spotswhere the newcompetition is
Cool Placeswhere latest
trends emerge
White Spaceswhere nobodyhas ventured
Black Holeswhere oldbrands die
Hot Spotswhere the newcompetition is
Cool Placeswhere latest
trends emerge
White Spaceswhere nobodyhas ventured
Black Holeswhere oldbrands die
ROE/Ke
Identifying the most Identifying the most y gy gprofitable opportunitiesprofitable opportunities
•• high growth marketshigh growth markets•• optimal competitive positionoptimal competitive position
•• profitable customer segmentsprofitable customer segmentsgg
ROE/ROEavAnalysis could be done for markets, segments, key accounts,brands, categories. products, or channels
Future Zone: Which markets have most potential?1
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Future Zone: Responsible1
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CreativeFuture Creative Zone
Future Zone
Creative Zone2
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Customerbroader
i
Businessnarrow
Business
view
narrowview
narrowview
Business CustomerBusiness Customer
Creative Zone: Gaining new perspectives2
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Creative Zone: Reframing2
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InnovationInnovation
Creative Zone: Creatively stretching the possibilities2
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Creative Zone: Solutioning2
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O peningup
ConceptInnovation
O peningup
M arketInnovation
O peningup
ConceptInnovation
O peningup
M arketInnovation
Generate ideasGenerate ideasGenerate ideasGenerate ideasGenerate ideasGenerate ideasGenerate ideasGenerate ideas
Generate ideasGenerate ideas
Openingup
ConceptInnovation
Generate ideasGenerate ideas
Openingup
ConceptInnovation
Generate ideasGenerate ideas
Openingup
ConceptInnovation
Generate ideasGenerate ideas
Openingup
ConceptInnovation
Openingup
ConceptI ti
Openingup
ProductI ti
Openingup
ConceptI ti
Openingup
ProductI ti
Generate ideasGenerate ideas
p InnovationGenerate ideasGenerate ideas
p InnovationGenerate ideasGenerate ideas
p InnovationGenerate ideasGenerate ideas
p Innovation
Creative Zone: What are all the possibilities?2
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Creative ZoneCreative Zone: Anytime: Anytime22
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Concept Zone
ConceptCreativeFuture Concept Zone
Creative Zone
Future Zone
Concept Zone3
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Concept Zone: Which are the best ideas?3
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DesperateDesperateHousewivesHousewives
iPodiPodPhonePhone
PhotoPhoto
VideoVideo HousewivesHousewives
MotorolaMotorola
PodcastingPodcasting 60G60G ShuffleShuffle
NanoNano(RED)(RED)
IconicIconicdesigndesign
iTunesiTunesMusicMusicStoreStore
LegalisingLegalisingFilesharingFilesharing
WhiteWhite ImitationImitation AdAd
MiniMini
iPodiPodBrandBrand
U2U2VertigoVertigo
ExclusiveExclusiveReleasesReleases
Success
cablescables And buzzAnd buzz GraphicsGraphics
SpecialEdition
Story
Apple Steve JobsiMac
Concept Zone: Fusing the best ideas together3
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Concept Zone: Experiential3
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Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions
Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions
Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions
Value to customer• Perceived by individuals• Relative to alternatives• Relative to costColour
ImportancePerception
CompetitivenessCost
Value ofValue ofValue ofValue of
Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions
Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions
Reducing uncertaintyFor example by• Strong customer loyalty• Long NPD pipeline• Brand extensions
Value of customer• Price less costs of sale• Plus future purchases• Plus efficiency
Memory
Price
SizeValue ofbenefits
to customer
Perceivedworth
relativeto others
Pricedto offer
value for
Value ofbenefits
to customer
Perceivedworth
relativePricedto offer
Value ofbenefits
to customer
Perceivedworth
relativeto others
Pricedto offer
value for
Value ofbenefits
Perceivedvalue
Price
Plus efficiencySupport
Availability
etc.to others value for
moneyReturn
to investors
money”Return
to investors
to others value formoney
Returnto investorsReturn
Articulating brands throughlli iticompelling propositions
• leveraging brand power for customers• maximising value to each segment
• optimising price elasticity
Concept Zone: Shaping new value propositions3
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Concept Zone: Enablement3
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LocationsLocations
Core Core businessbusiness
modelmodelProductsProducts FormatsFormats
Useful Useful extensionextension
strategystrategy
E di b d h f hE di b d h f h
strategystrategy
Total Total BrandBrandExtending brands to reach further,Extending brands to reach further,
faster and more profitablyfaster and more profitably•• leveraging power in adjacent marketsleveraging power in adjacent markets
•• licensing and franchisinglicensing and franchisingi i i fit ti i i fit t
businessbusinessformatformat
and relatedand relatedservicesservices
Concept Zone: Evaluating how best to deliver them3
•• maximising new profit streamsmaximising new profit streams
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Concept Zone: Ingredient3
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Concept Concept ZoneZone
ImpactImpactConceptConceptCreativeCreativeFutureFuture Impact Impact ZoneZone
Concept Concept ZoneZone
Creative Creative ZoneZone
Future Future ZoneZone
Impact Zone44
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Tell others
Pay more
Tell others
Pay morey
Cost less
Stay longer
y
Cost less
Stay longer
Cost less
Buy more
Cost less
Buy more
1 2 3 4 5 6 71 2 3 4 5 6 71 2 3 4 5 6 71 2 3 4 5 6 7
Average length of customerrelationship (in years)
1 2 3 4 5 6 71 2 3 4 5 6 71 2 3 4 5 6 71 2 3 4 5 6 7
Average length of customerrelationship (in years)
Impact Zone: turning customers into profits4
relationship (in years)relationship (in years)
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Impact Zone: net promoters4
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££
Incremental Incremental valuevalue
OriginalValue
FinalValue
Increased Customers
NewChannels
Additional investment SynergiesNew
Markets
Impact Zone: What will be the impact?4
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Impact Zone: Impact Zone: doing moredoing more44
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Market researchMarket researchLinked into ongoing marketLinked into ongoing marketresearch tracking programresearch tracking program
Financial analysisFinancial analysisLinked into ongoing financialLinked into ongoing financialsystems and autosystems and auto--analysisanalysis
Business PerformanceBusiness PerformanceKey reports produced forKey reports produced for
CEO and directors, drivingCEO and directors, drivingpriorities and investmentpriorities and investment
Personal PerformancePersonal PerformanceLinked to manager and Linked to manager and team’s objectives, KPIs,team’s objectives, KPIs,
reviews and compensationreviews and compensation
Investor RelationsInvestor RelationsMarketing becomes keyMarketing becomes keypart of analyst briefingspart of analyst briefings
d l td l t A ti l ti th l l fA ti l ti th l l fand annual reportand annual report Articulating the real value of Articulating the real value of brands and innovationbrands and innovation•• to the wider businessto the wider business
•• to finance and the boardroomto finance and the boardroomt i t d l tt i t d l t
Impact Zone: What will be the impact?44
•• to investors and analyststo investors and analysts
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Impact Zone: Impact Zone: doing gooddoing good44
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Where are the best opportunities?
What are the creative possibilities?
Which are thebest innovations?
How much valuewould it create?
Concept ZoneZone
Impact Zone
Concept Zone
Creative Zone
Future Zone
Identify markets and Focus creativity More rigorously Value impactIdentify markets and and products of most
potential value
Focus creativity where it can have
most impact
More rigorouslyevaluate and connect
the best ideas
Value impactis more measurable
and greater
Unlocking the real value of brands
BrandGenius
Fast foodFast food
ImmersionImmersion
WellbeingWellbeing
ResponsibleResponsible
TransformationTransformation
AuthenticAuthentic
About youAbout you
We help you innovate We help you innovate driven by customersdriven by customers
BrandGenius
GlobalGlobal
BacklashBacklash
Sales declineSales decline
Beyond CokeBeyond Coke
Local relevanceLocal relevance
New DNANew DNA
InnovationInnovation
We help you innovate We help you innovate where it matters mostwhere it matters most
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Business IPOBusiness IPO
Multiple brandsMultiple brands
Growth marketsGrowth markets
Brand valuationsBrand valuations
Growth optionsGrowth options
Value impactValue impact
We help you do We help you do what nobody else can dowhat nobody else can do
BrandGenius
Share declineShare decline
MarketplaceMarketplace
Growth optionsGrowth options
EvaluationEvaluation
Market strategyMarket strategy
Focus marketsFocus markets
GrowthGrowth
We help you combine rigour and magic
BrandGenius
Start upStart up
Niche audienceNiche audience
Strong brandStrong brand
Growth optionsGrowth options
New marketsNew markets
Faster growthFaster growth
We help you We help you accelerate business growthaccelerate business growth
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The yin and the yang
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The crazy onesThe crazy onesBrandGenius
e c a y o ese c a y o es
Here’s to the crazy ones.
The misfits The rebelsThe misfits. The rebels. The troublemakers.The round pegs in the square holes.The ones who see things differently.
Th i t Th i i Th h lThey're not fond of rules.And they have no respect for the status quo.
You can praise them disagree with them
They invent. They imagine. They heal.They explore. They create. They inspire.They push the human race forward.
M b th h t bYou can praise them, disagree with them, quote them, disbelieve them, glorify or vilify them.
About the only thing you can't do is
Maybe they have to be crazy. How else can you stare at an empty canvas and see a work of art?
O it i il d h th t' b itt ?About the only thing you can t do is ignore them. Because they change things.
Or sit in silence and hear a song that's never been written?Or gaze at a red planet and see a laboratory on wheels?
While some see them as the crazy ones,e see geni swe see genius.
Because the people who are crazy enough to thinkthey can change the world, are the ones who doare the ones who do.
The crazy onesThe crazy onesBrandGenius
e c a y o ese c a y o es
© © The Genius Works Ltd 2008peterfisk@peterfisk com
www.BrandGenius.com
BrandGenius