9 Criteria for Brand Essence

9the criteria for brand essence TM Kirk Phillips, Conrad Phillips Vutech What every professional should know about branding. ©2009 Conrad, Phillips & Vutech, Inc. page Index 3 Definitions 7 Intangibles 14 Perception 17 vs. Commodities 24 Touchpoints 27 Responsibility 31 Essence 35 The 9 Criteria 59 Loyalty 68 Advantages ©2009 Conrad, Phillips & Vutech, Inc. For starters, brands live in your head. ©2009 Conrad, Phillips & Vutech, Inc. How you think + feel about a brand is the brand. Inc. Phillips & Vutech. © Kellogg Company . ©2009 Conrad. a name. or product. trademark. Phillips & Vutech. . logo package.©®TM A brand is not ©2009 Conrad. Inc. ©2009 Conrad. Inc. Phillips & Vutech.A brand is a collection of your thoughts + feelings about your experiences with it. . ©2009 Conrad. Phillips & Vutech.Thoughts and feelings are intangibles. . Inc. Inc... seetaste hearortouch smell which you can ©2009 Conrad.As compared to tangibles. . Phillips & Vutech. .Intangibles you just . feel ©2009 Conrad. .. Phillips & Vutech. Inc. “What you make people feel is just as important as what you make. Phillips & Vutech.” ~BMW ©2009 Conrad. Inc. . Inc. Phillips & Vutech. Experiencing Disney World with your children feels magical. Sending an important package via FedEx feels safe. ©2009 Conrad. .Riding a Harley-Davidson motorcycle feels liberating. every day people make hundreds of decisions based more on how they feel than on logic. . Think about it -. cars. entertainment -. Inc. restaurants. Phillips & Vutech.business purchases too. ©2009 Conrad.clothes. Inc. ©2009 Conrad.Examples of tangibles + intangibles Tangible: Asics Gel-Bandito are lightweight. Intangible: Asics Gel-Bandito help me run faster. Phillips & Vutech. . Phillips & Vutech. cause or organization with perceived intangible attributes. Inc.a formal definition A brand is a product. . ©2009 Conrad. service. Phillips & Vutech. it’s not a brand. Inc. ©2009 Conrad. but if you don’t perceive the intangibles.Intangible attributes must be perceived Sounds obvious. . some see ‘em.Perception of intangibles is in the eye of the beholder. ©2009 Conrad. . Depending on the brand. some don’t. Phillips & Vutech. Inc. Inc.When you don’t perceive an intangible. it’s a commodity to you. ©2009 Conrad. . Phillips & Vutech. .” To you. And vice versa. Inc. ketchup is a commodity. depending upon the category. “tomato.for example You say. there’s a difference in ketchup brands. To me. Phillips & Vutech. ©2009 Conrad. “Fox’s Fine Gourmet Ketchup.” I say. Phillips & Vutech. Inc.brand categories Brand categories people care about most (among 440 brands surveyed): Luxury cosmetics Kids’ breakfast cereals Wireless handsets Luxury moisturizing skin care products Discount retail stores ©2009 Conrad. ~Brand Keys. 2009 Loyalty Engagement Index . Phillips & Vutech. 2009 Loyalty Engagement Index . Casual dining restaurants Bottled water ~Brand Keys. Inc.commodity categories Brand categories people care about least (among 440 brands surveyed): Banks Insurance Soft drinks (regular) ©2009 Conrad. Inc. Phillips & Vutech.  .commodity ©2009 Conrad. service. a product. cause or organization with no perceived intangible attributes. Inc. commodities of the same type are interchangeable with each other. (Unless you perceive a difference. Soybeans are soybeans. .On Wall Street. Phillips & Vutech.) ©2009 Conrad. brand vs commodity Brands compete on their intangible attributes. Commodities compete on price or convenience. ©2009 Conrad, Phillips & Vutech, Inc. How do brands get inside your head? Exposure Through exposure to messages about the brand ©2009 Conrad, Phillips & Vutech, Inc. Experiences Through actual experiences with the brand Experiences = Touchpoints Touchpoint is marketing jargon for a moment (time and place) when the brand comes in contact with the audience. there are lots of them ©2009 Conrad, Phillips & Vutech, Inc. Inc. RS ON NE L .IN ET AR NEW KE S ST AG M TIN N DIE CE M IES S R S O A NT EME M RECT C A PL DI UCT D O PR VEHICLES COMPA NY OFFIC SAL ES E CO S OU TLE NT TS AC TW ITH CO M PA NY PE ER SE TEL RV EM IC ARK ETIN E G DIRECT MAIL WEB SITE OWS H S E TRAD OM CU ST ©2009 Conrad. CO NT AC TW ITH V AU IA ED E PL O PE S LE CE SA EN H ND IT PO W ES RR CT CO TA N NY CO MPA CO OR G IES NY SPEA KERS ENDORSEMENTS S ORM E F I N U L SA S F N O IO NT T I A PO IC UN M M CO R O T ES COMPA IN TS EN EV ING RN CK PA TE T MEN N R E GOV PROMOTIONS SPONSO RSHIPS OU T D SA LE OOR M SL ARK ITE ETIN RA G TU RE BYI LOB NG Even more than you see here. Phillips & Vutech. ©2009 Conrad. Phillips & Vutech.Who affects these moments of brand experience? Every single person in the organization contributes to shaping the audience’s experiences with the brand — even if they don’t come in contact with the audience. Inc. . Inc. . Phillips & Vutech. every dollar spent and every decision made . impacts the audience’s experiences with the brand..Likewise.. ©2009 Conrad. .For this reason. Phillips & Vutech. ©2009 Conrad. branding is not solely a marketing function. Inc. It is an organizational function. Inc. starting at the top.A brand will not be strong unless the entire organization understands and embraces branding. . ©2009 Conrad. Phillips & Vutech. . ©2009 Conrad. Inc.Every strong brand stands for something — one differentiating attribute. Some call it the brand essence. Phillips & Vutech. . soul heart mantra promise signature strength core strength core attribute description personality differentiator experience connection persona life force uniqueness individuality meaning central nature proposition and so on . Inc. Phillips & Vutech. ©2009 Conrad. ...Others call it the brand.. It’s the concept that matters. ©2009 Conrad. .Don’t worry about the semantics. Phillips & Vutech. Inc. The brand essence is the single intangible attribute that differentiates the brand from competitive brands as perceived by the audience. Phillips & Vutech. ©2009 Conrad. Inc. . 9 the ©2009 Conrad. Inc. criteria for brand essence TM . Phillips & Vutech. the criteria for brand essence TM 1. then it is claiming that its competitors (PCs. Phillips & Vutech. for example If Apple (and its products) are friendly and approachable. . Inc. etc. ©2009 Conrad.) are not. U  nique The essence of a brand is how it is different from competitors in the same category. Inc. not how they are the same. .the criteria for brand essence TM 1. Phillips & Vutech. unique. U  nique People make decisions based upon how things are ©2009 Conrad. ” ©2009 Conrad. Phillips & Vutech. U  nique T h i n g s y o u wi l l n e v e r h ea r s o m e o n e s a y: “I picked it because it was exactly like every other car I test-drove. Inc. .the criteria for brand essence TM 1.” “We bought it because it was exactly like every other house on the street.” “I married him because he was exactly like every other guy I dated. Phillips & Vutech. U  nique the essence. ©2009 Conrad.. Inc.the criteria for brand essence TM 1. gives the audience the primary reason to choose a brand over competitors’ brands.. . . Own a single idea. Inc. U  nique be unique ©2009 Conrad.the criteria for brand essence TM 1. Phillips & Vutech. U  nique Examples of brand essence: Harley-Davidson = Liberating 3M = Innovative Visa = Everywhere Jeep = Adventurous ©2009 Conrad.the criteria for brand essence TM 1. Inc. Phillips & Vutech. . . U  nique Brand positioning is. the relative differences between brands as perceived by the audience.. Phillips & Vutech. Inc. .the criteria for brand essence TM 1. ©2009 Conrad. Phillips & Vutech.the criteria for brand essence TM 1. . Inc. U  nique E x a m p l e s o f aut o m o ti v e b r a n d p o s iti o n s Toyota Prius = Fuel-efficient Hyundai = Affordable Porsche = Sporty Lexus = Luxury Lamborghini = Exotic ©2009 Conrad. ©2009 Conrad. I ntangible One is no more independent on a Harley-Davidson motorcycle than another brand. Tap into what the audience feels. . Inc. but somehow one feels like it. Phillips & Vutech.the criteria for brand essence TM 2. Single-minded One word to describe the essence is ideal. Inc. More than two words indicates that the brand has no focus. Maybe two.the criteria for brand essence TM 3. . ©2009 Conrad. Phillips & Vutech. having no focus makes for a weak brand. Because a brand (by design) delivers a unique experience. . when you narrow its focus.” ~Ries & Ries. Inc. Single-minded “A brand becomes stronger .the criteria for brand essence TM 3. The 22 Immutable Laws Of Branding ©2009 Conrad. Phillips & Vutech.. . ” ©2009 Conrad. Phillips & Vutech. © Volvo Trademark Holding AB and/or Volvo Cars .the criteria for brand essence TM 4. Experiential The essence captures what the audience feels during an experience with the brand. Example “Driving a Volvo makes me feel that my family is safe. Inc. ©2009 Conrad. Meaningful There is no point in identifying an essence that is irrelevant to the audience.the criteria for brand essence TM 5. . Essences that don’t connect are the reason behind many failed brands. Research it. Phillips & Vutech. Inc. ©2009 Conrad. Inc. © Walt Disney Company . Consistently delivered If the proposed essence is not consistently experienced then it isn’t the essence.the criteria for brand essence TM 6. Phillips & Vutech. then every trip to Disney World must deliver on that promise. Example If magical is Disney’s essence. © McDonald’s Corporation . ~ The success of all chains is based upon consistency of experience.the criteria for brand essence TM 6. and predictability.) ~ Consistency of experience is the basis for brand loyalty. Phillips & Vutech. (Think McDonald’s. ©2009 Conrad. Consistently delivered Consistency = “No Surprises” ~ People seek comfort. stability. Inc. Consistently delivered Former Holiday Inn tagline: “The best surprise is no surprise” ©2009 Conrad. Phillips & Vutech. Inc. © IHG .the criteria for brand essence TM 6. . Can your organization deliver? ©2009 Conrad. Consistently delivered Maintaining consistency . .the criteria for brand essence TM 6. is a major challenge for most organizations.. Phillips & Vutech. Inc. ~Scott Davis.” ©2009 Conrad.the criteria for brand essence TM 6. Brandweek .. Inc. Phillips & Vutech. is a broken one. Consistently delivered “One of the few things worse than no promise .. but only if your audience believes you can deliver on the promise. To find out what the audience believes about your brand. ask them.) ©2009 Conrad. (It’s okay for the brand essence to be aspirational. . Authentic The essence must be credible or the brand will be rejected.the criteria for brand essence TM 7. Inc. Phillips & Vutech. It doesn’t change. ©2009 Conrad. Phillips & Vutech. Sustainable A brand’s essence is baked in. .the criteria for brand essence TM 8. Inc. Ever. Phillips & Vutech.the criteria for brand essence TM 9. Scalable Will the essence work for brand extensions? Will it work as the brand’s opportunity grows? ©2009 Conrad. . Inc. Scalable . Consistently delivered 7. TM 6.9 the criteria for brand essence 1. Single-minded 4. Inc. Meaningful ©2009 Conrad. Phillips & Vutech. Intangible 3. Sustainable 9. Unique 2. Authentic 8. Experiential 5. promising. . and delivering a unique brand experience consistently.Branding.. defining. Branding distinguishes the brand from its competitors and builds preference.. Inc. Phillips & Vutech. ©2009 Conrad. is. then. Phillips & Vutech. ©2009 Conrad. singular and favorable brand experiences. . Loyalty results from having a series of consistent.ROI of branding Branding generates trial + loyalty. Inc. Trial (trying the brand) results from being intrigued by the promise of the brand experience. Phillips & Vutech. .The ultimate goal of branding is loyalty. ©2009 Conrad. Inc. Inc. ©2009 Conrad. And recommends the brand to others. Phillips & Vutech. .A loyal audience seeks repeat brand experiences. ~ Kuczmarski & Associates . Phillips & Vutech.  rand loyalty drives up B to 70% of all purchase decisions. Inc.brand loyalty ©2009 Conrad. brand loyalty ©2009 Conrad. Loyal customers. Phillips & Vutech. are willing to pay a 20% premium for their brand of choice. ~ Kuczmarski & Associates . Inc. on average. Phillips & Vutech. promotionbased marketing is often centered on pricing strategies and aims for short-term results.Unlike branding. ©2009 Conrad. Inc. . but requires commitment to a long-term strategy. Inc. . ©2009 Conrad.Branding generates long-term results. Phillips & Vutech. “Brands are not built overnight. Success is measured in decades. Phillips & Vutech.” ©2009 Conrad. ~Ries & Ries. The 22 Immutable Laws Of Branding . not years. Inc. Loyalty Brand Loyalty Marketing Reinforcement Beliefs Reinforcement Attitudes Trial Expectations Awareness time ©2009 Conrad. Phillips & Vutech. Inc. ©1994 Coalition for Brand Equity . . Phillips & Vutech... 1. Inc.a strong brand is. ©2009 Conrad. cost-effective to sustain for example Maytag’s brand essence of dependability as symbolized by “the lonely repairman” campaign has been running for over 40 years. broadway shows.a strong brand is. ~ The Gap spun off sub-brands to serve different audiences through babyGap. retail stores. ~ Disney moved into new categories with Disney cruises. . adding Tide liquids. etc. a foundation for new launches for example ~ T ide extended its brand within its category. etc. Phillips & Vutech. Tide To Go. ©2009 Conrad.. 2. etc. GapKids. Inc.. Inc.. Phillips & Vutech..a strong brand is. an ideal partner for co-branding opportunities for example ~ Intel positioned itself as the preferred microchip for all brands of personal computers through its “Intel Inside”campaign. 3. . ~O  ne of Edie’s Loaded frozen dairy desserts features Nestlé Butterfinger candy pieces. ©2009 Conrad. for example ~ Imagine the difficulty in trying to replace iPhone as the smartphone with the most applications. Inc. Phillips & Vutech.. . 4.a strong brand is. a barrier to competition Owning a position in the minds of the audience often discourages competitors from head-on competition. ©2009 Conrad.. Now that you have a basic understanding of brands + branding.cpvinc.net/kirkphillips/the-9-crit ©2009 Conrad. Our process helps organizations build brand equity by influencing the desired behavior.slideshare.cpvinc.com 614-224-3887 www. .com www. Inc.com www. For more information or to discuss next steps. how will you use it? How will you better define and leverage the unique experience of your brand with your audience? We can help. Phillips & Vutech. We are a full-service branding and marketing firm. please contact me: Download or print this document from these sources: Kirk Phillips Conrad Phillips Vutech kirk@cpvinc.