Strategic Strategic Experiential Experiential BrandingBranding
David VinjamuriJuly 2008
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What We Will Cover
• Building customer experience Brand experience building exercise
• The Branded Lifestyle
• Building experiences with the five senses
• Engaging customers - customer-created experiences
Design a customer-run community
• Technology in Experiential Marketing
Online community exercise
• Engaging employees in delivering the brand promise
Design an employee-branded program for your brand
• Six brand lessons from Accidental Brands
Day IDay I Day IIDay II
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What is Experiential Branding?
1. Engaging experiences created by marketers for your brand
• Ralph Lauren Flagship Store, NYC
• The World of Coke
• Massage Chairs in Brookstone
2. Extending your brand into the customers’ life
• Martha Stewart Houses
• Branny Academy
3. Engaging all the senses – choreograph the brand experience
4. Getting customers to build experiences
5. Brand building through employees
Building Customer Experiences
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Questions
1. How do I build branded experiences for my customers?
2. How does brand engagement translate to increased brand loyalty?
3. How do I ensure these experiences are consistent with my brand strategy?
4. How do I measure the marketing ROI?
5. What are examples if successful brands using brand experiences?
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Goal of Experiential Branding?
INCREASE BRAND EQUITY
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What is Brand Equity?
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Questions• Reduced Marketing Costs
• Trade Leverage
• Attracting New Customers
• Create Awareness
• Reassurance
• Time to Respond to Competitive Threats
• Anchor to Which Other Associations can be Attached
• Familiarity - Liking
• Signal of Substance / Commitment
• Brand to be Considered
• Reason to Buy
• Differentiation / Position
• Price
• Channel Member Interest
• Extensions
• Help Process / Retrieve Information
• Reason-to-Buy
• Create Positive Attitude / Feelings
• Extensions
• Competitive Advantage
Brand Loyalty
Brand Awareness
Perceived Quality
Brand Associations
Other Propriety Brand Assets
BRAND
EQUITY
• Provides Value to Customer by Enhancing Customer’s:
• Interpretation / Processing of Information
• Confidence in Purchase Decision
• Use Satisfaction
• Provides Value to Firm by Enhancing:
• Efficiency and Effectiveness of Marketing Programs
• Brand Loyalty
• Prices / Margins
• Brand Extensions
• Trade Leverage
• Competitive Advantage
Credit: David A. Aaker, Managing Brand Equity
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Brand Equity: McDonalds
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Brand Attributes
PRODUCT ATTRIBUTES
FUNCTIONAL BENEFITS
EMOTIONALBENEFITS
PERSONALITY
ICONS
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1. Product Attributes
• Quick Serve• Consistent• Eat-in / Take-out• Counter / Drive-thru• Popular, basic items (burgers, fries)
• Inexpensive• Lots of locations
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2. Functional Benefits
• Save time
• Satisfy hunger and thirst
• Whole family can enjoy
• Get toys in addition to food
• Don’t spend a lot of money
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3. Emotional Benefits
• No hassles
• No surprises
• Safe haven
• Treat / break from busy day
• Kids have fun
• “Hero” with my kids
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4. Personality / Values
• Happy• Kid-Friendly• Family-oriented• Simple, Basic• Trustworthy• Community oriented• American
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5. Icons
• Golden arches
• Red and Yellow colors
• Ronald McDonald
• Playgrounds
• Happy Meals
• Big Mac
Case Study: Red Bull
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“The thin color is unappetizing”
“It tastes sticky in my mouth”
“Totally disgusting”
What Consumers Said
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“Totally unappetizing … sticky .. disgusting … No other new product has ever failed this convincingly”
- NPD Market Research report on first use test of Red Bull, 1984
Market Research Results
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• Dietrich Mateschitz founds company 1984
• Bad research results
• Huge disputes with Austrian FDA
• Ad Agency cannot come up with a single good campaign idea
A GOOD TIME TO GIVE UP??
Getting the Bull Out
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• Launches in Austria in 1987
• 8x the price of Coke
• Positioned as a ‘cool’ stimulant (Viagra in a bottle)
• Used regulatory trouble to create a big myth
Launch
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“It took five years to gain permission for export into
Germany, Red Bull’s second market… Initially,
Munich became a flourishing black market and
speculation started why the drink was illegal in
Germany: Was it speed-in-a-can, a legal drug? Was
its Taurine sourced from Bull’s testicles, making Red
Bull an over-the-counter Viagra?”
The Red Bull Myth
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• German moms united after Red Bull launched there in 1992 to get it banned again …
… making it wildly popular with teenagers
• Red Bull sold out everywhere in first three months on market …
… Which made it even more popular
Building the Myth
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“Here is a non-alcoholic product about as caffeinated
as a cup of coffee – that’s managed to acquire a
reputation as a surefire wild-times elixir … a party
drink, a stimulant, an aphrodisiac, a raver’s ‘smart
drink’ gone mainstream. The strategy is rumor by
omission and, only when absolutely necessary, denial
… the public has filled in the blanks with speculation
and innuendo.”
The Press and the Myth
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• The taste becomes a selling point.
• It tastes so strong – it must be working.
• Red Bull is always sold as a functional drink – it makes you work better.
• “The Taste Doesn’t Matter” - Mateschitz
What About That Taste?
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• Lots of sampling at the ‘right places’
German Marketing
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• “Flugtag” – German Flying Day
German Marketing
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• 60 aspiring DJ’s invited to Music Academy
German Marketing
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• Bartenders created the ‘Stoli Bully’
=
German Marketing
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• Every employee has to be an enthusiast
• Every vendor is a believer
• Don’t waste time on non-believers
• Believe that they are the underdog
The Red Bull Culture
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Issue Marketing Rules Red Bull Rules
Positioning Aspirational Functional
Advertising Launches Brand Support Role Only
Targeting Want Everyone Want ‘Right’ People
Distribution Broad Availability Limit Availability
Sampling Widespread High Quality Limited
Celebrities Pay for Celebs Don’t Pay Them
Merchandising Logos for All Out of Reach
The Red Bull Rules
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• Focus on Building Brand Enthusiasts as Partners:• Bar staff• Cab drivers
Launching in New York
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• Used exclusivity as a weapon• On-premise sales followed sampling• Limited Retail distribution for years
• Sampling in situ is the key tactic• Always provide a full, sealed can for sampling
Launching in New York
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• Launched Red Bull in Austria in 1987
• Expanded to Germany in 1992
• Sold in 100 Companies in 2004
• Over 1 Billion Cans Consumed Annually
21-Year Report Card
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5 Lessons from Red Bull
• Size is a by-product of success, not success itself
• Build enthusiasts, not just brand users
• Unmet demand is not always bad
• Everyone, including suppliers, must personify the Brand
• Overnight success takes time
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Consistency
Evaluate your brand Expert Brand Insider Brand Lifestyle Brand Challenges Brand
What kind of experience will build your brand?
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Measuring the Benefits of Branded Experiences
1. Top of mind unaided brand awareness
2. NPV (Net Present Value)
3. IRR (Internal Rule of Return)
4. The Brand Scorecard – can include share, awareness, etc.
5. The One Number You Need to Grow (handout)
6. Basic ROI
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Case Study: American Express
http://www.askmrcreditcard.com/americanexpressnyccard.html
http://www.pollingcompany.com/cms/files/2005%20INNYC%20Survey%20Press%20Release.pdf
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Case Study: The Range Rover Experience
Cost
of
Experience
Customer
Fee
Increase
in
Purchase
Interest
Increase
in
Customer
Lifetime
Value
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Case Study: The Magic Kingdom• Created by a movie studio
• Very early Brand Experience (1957)
• Idea from successful studio tour
• Idea was to immerse consumers in the Disney
Brand – let the movies come alive
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Case Study: Sony Style
• How do I showcase innovation?
• How do I get consumers to see my whole line?
• How can I make this an experience?
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Brand Manager Tips
• Think small first – don’t set yourself up for failure
• Consider psychographic success measures – attitudes matter!
• Evaluate partners carefully
• Monitor costs closely
• Have a disaster plan
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• Team up in groups of 4
• Pick an Asian / Global Brand
• Okay to use a brand you work on
• Design a brand experience
• Present Plan –Rationale, Plan, Resources Needed, Measurement
• 45 minutes
Exercise: Brand Experience
The Branded Lifestyle
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• How can we increase consumer involvement with our brands?
• How can I extend brand awareness past traditional usage boundaries?
Create a branded lifestyle
Works for Lifestyle brands
Challenge
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• How can you bring your brand to other parts of your customer’s life?
• Where will your brandy equity be strongest?
• When can this elevate the brand?
The Branded Lifestyle
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• Martha Stewart
• American icon
• Domestic expert
• Seeks perfection
• Memorable experiences
• Martha Stewart Homes
• Design for everyday people
• Sense of style in the suburbs
• Great brand awareness
Martha Stewart Homes
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• Bulgari
• Jewelry
• Fashionable
• Elegant
• Established
• Bulgari Hotels and Resorts
• Luxurious
• Elegant
• Design-driven
• Exclusive
Bulgari Hotels and Resorts
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• Ikea
• Better living by saving money
• Sensible design = Scandinavian design
• Goes with starter homes
• Boklok House
• Good quality, cheaper
• Design is Ikea
• Elevates branding
Ikea Houses
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• Disney
• Kid-focused
• Family-friendly
• Traditional values
• Entertainment
• Celebration, FL
• Traditional values
• Family-oriented
• Walk, not drive
• 9000 residents
Celebration, Florida
Building Experiences with
Five Senses
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• Much of today’s branding relies overwhelmingly on SIGHT
• Opportunities:
• Sound - Is there a distinctive sound associated with your brand? (Intel)
• Smell – Do customers link a smell to your brand? (Rolls Royce)
• Taste – Does your brand evoke a taste? (Colgate, Listerine)
• Touch – Can you identify the brand with your fingers? (Coca-Cola)
Sensory Branding
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Sensory Branding
Table 1
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Sensory Branding
Table 2
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• 1973 – Singapore Girl
• Uniform
• Make-up
• Perfume
• 1990s – Hot Towel Sent (Stefan Floridian waters)
• 1990s – music in lounges
Case Study: Singapore Airlines
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Sensory Branding
Singapore airlines 5-D model
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Sensory Branding
Intel
5-D model
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Sensory Branding
Colgate
5-D model
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The Sensory Brand Pyramid
Stimulate
Enhance
Bond
Stimulate: Create interest or anticipation with senses – the smell of warm bread, the sound of a can of Coke opening
Enhance: Use sense to intensify the brand experience – the smell of a Rolls Royce
Bond:Bond: Link a sensory input permanently to the brand – Singapore Airlines cabin scent and music
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• Digital Video Recorder
• Strong competition
• Strong loyalty
• Used
• Touch – feel of remote
• Sound – sound of thumbs-up and thumbs-down button
• Sight – Thumbs-up/down
Case Study: TiVo
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• What is new car smell?
• Every new Mercedes smells the same
• The smell is patented
• It lasts for 6 weeks on average
Case Study: Mercedes Benz
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• Does your brand leverage the maximum number of senses for your industry?
Sensory Audit
3FMGG
Financial Services
E-Commerce
Service Providers
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5Hospitality
Entertainment
Retail
Telecommunication
e-Commerce
(Digital Service)
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Customer Engagement in
Brand Experience
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1990s
• Subculture of Barbie-loving adults starts running Barbie Fashion Shows
• Artists and designers join this movement
• Subversive designs include “Trailer Trash Barbie” and “Big Dyke Barbie”
• Mattel sues fans
• Mattel loses
• Barbie loses cache, Mattel goes into slump and never recovers
Case Study: Barbie
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Early Target:Internet junkiesHorror finaticsFilm buffs
Message:• Did the Blair Witch exist?• Did 3 film students die in the woods trying to find her?• Was “Blair Witch” a snuff film?
Result:• Consumers took over marketing• Gossip spread message
Case Study: The Blair Witch Project
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Case Study: The Blair Witch ProjectCREATING THE MYTH ANTICIPATING THE FILM LAUNCHING THE FILM
Building Momentum
Becoming the “Next Big Thing”
Mass Release
Seeding the Myth Limited Release • Wide-release in 2,000+ theaters
Growing the Myth Switching message from myth to movie • Debuts at NYC’s Angelika Film Center
• 90% of advertising budget spent during this phase
Breeding the Myth The rumor spreads • Introduced at Sundance during midnight screening
• Limited distribution creating long lines and great PR
• Comic book, CD, and book released
Rumor starts • Second clip is shown on Split Screen Show
• Artisan buys distribution rights for $1 million • Advertising starts in phases: print, radio, and then TV
• Film racks up $224 million at the box office
• ???? And Sanchez appear on John Pierson’s Split Screen Show
• Pierson invites viewers to debate the rumor online
• Pre-screened at 40 colleges with students, but not with critics
• Web site gets 650,000 hits a day
• They show 8 minutes of footage ??? That it was ?? And in the woods
• Blair Witch website goes live
• Mentioned on Ain’t It Cool News website • Media jumps on bandwagon, appear on cover of Time magazine
• ??? of the ???? Students ????
• Team spreads misinformation and drives traffic to website
• Trailers shown on Ain’t It Cool, MTV and after Star Wars movie
• Add more “evidence” to the website – created fake fan sites
• Curse of the Blair Witch “mockumentary” airs on SciFi Channe;
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H.O.G.s
• 400,000 members in 1,000 chapters
• Assisted, not controlled by Harley
• Organize rides and rallies
• Have a voice in the company
• Saved Harley in the 1980s during the Japanese Superbike invasion
Case Study: Harley Owner’s Group
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• 2005 – Sprint contacts 1000 influential bloggers
• Offers them phones and free service for 6 months
• Gives them a forum to submit feedback
• Stays otherwise hands-off
Case Study: Sprint Ambassador Program
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Brand Loyalty Ladder
Brand “Recruitment Process” to gain loyal and involved consumers.
Adoption
Trial
Reconsideration
Retrial
Discovery
Recommendation/ Raving Fan
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• Mindstorm is toy with computer controller
• Targeted at teen boys
• Has adult geek-programmer fan base
• Reaches out to 3 fans
• Gets them to help design the next generation of products
Case Study: Lego Mindstorm
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• Groups of 4
• Pick an Asian / Global Brand (can be yours)
• Design a brand community• Why will people participate?
• What makes it interesting?
• What makes it unique?
• Present Plan
• 45 minutes
Exercise: Brand Community
Technology in
Experimental Marketing
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• Changes in how consumers interact with brands on the internet
• Online – co-creation and co-marketing
• Online community
• Online customization
What We Will Cover
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• NEW MEDIA BOOTCAMP SLIDES
TO BE INSERTED
Engaging Employees in
Delivering the Brand Promise
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• They know your brand best
• They are invested
• Their opinion can greatly damage you if negative
• Improving their opinion strengthens the brand
• They must understand the brand promise to deliver it
Why Think About Employees?
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• They know your brand best
• They are invested
• Their opinion can greatly damage you if negative
• Improving their opinion strengthens the brand
• They must understand the brand promise to deliver it
Why Think About Employees?
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• Early News
• Discounts
• Tell-a-friend bonuses
• Exclusive access
The Employee as Brand Insider
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• New Tagline in 1998? – “The Best Cancer Care Anywhere”
• Promise failed
• Meaning of “care”
• Retained support staff
• The Janitor Incident
Case Study: Memorial-Sloan Kettering
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• Train them in Brand Positioning
• Entrust them with positioning statement
• Use professionals to train
• Focus on the lesson – everything affects the brand
• Build branding skills among employees
Training Employees
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• Focus on behavior, not attitude
• Describe specific examples
• Illustrate the negative impact on the brand
• Consider giving a PTO (paid time off) leave
• Ask for a new commitment
Dealing with Negative Employees
http://gothamist.com/2008/01/04/starbucks_baris.php
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• Groups of 4
• Design an employee marketing program
• Explain employee benefits and employee responsibility
• Explain costs and potential revenue/costs savings
• 45 minutes
Exercise
Six Brand Lessons from Entrepreneurs
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XXXX
XX
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What is an Accidental Brand?
XX1. Must be started by someone with no
formal marketing training
2. Must solve their own problem
3. Brands 10+ years old
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Six Lessons from Accidental Brands
#1#1
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Memory: 20 GB 20 GB
Songs: ~4500 ~4500
iPod Second Generation
July 2002
Creative NOMAD Jukebox Zen
June 2002
http://docs.info.apple.com/article.html?artnum=61688-en http://www.mp3newswire.net/stories/2002/nomadzen.html
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#2#2
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102
103
#3#3
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107
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Am I being polite?
Did I offer to carry her
bags?
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I’m not giving him my bags.
Do I have to tip him?
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Did I greet the
customer with his name?
Do we have his loyalty program
number?
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Did I do something
wrong?
Why isn’t she making
eye contact?
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http://www.columbia.com/tv_ads/tv_ads.aspx
#4#4
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Time to $100 Million in Revenue
22 years
21 years10 years
8 years
4 years
#5#5
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Μύθος (míthos) - Mythos * From μυθολογέω "I tell tales," μυθολόγος "legend," μῦθος "story" and λέγω "I say"
* Definition: a usually traditional story of ostensibly historical events that serves to unfold part of the world view of a people or explain a practice, belief, or natural
phenomenon
λόγος - Logos * From λέγω - "I say"
* Definition: the divine reason implicit in the cosmos, ordering it and giving it form and
meaning.
Mythology – a story with a lessonMythology – a story with a lesson
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#6#6
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