Roland Berger_Strategic Brand Management

Strategic Brand Management Advanced Understanding of Consumer and Brand Value – Short introduction – Roland Berger Strategic Brand Development GroupMunich, London, New York January 2002-1-The "right" or "wrong" brand strategy has immediate impact on business success, profitability and corporate value• The importance of brands is ever increasing: Consumers are increasingly "bombarded" withadvertising messages and information. Due to this information overkill, a brand has become the abbreviation of all its positive and negative rational and emotional associations – brands increasingly give people orientation and identity in a "crazy" world•Brand companies are ever battling against numerous "imperfections" with regard to the strategic development of their brands– The success or failure of a particular brand strategy is often difficult to explain. Discussions about the strategic development of brands tend to be abstract and are generally subject to the emotional, subjective impressions of the people involved: the "language" is prone to misunderstandings Sales managers, marketing managers, and product developers often work in isolation from each other. As a result, the marketing mix is usually "overloaded" and not entirely mutually conclusive The results of the various players along the strategic brand development process are not compatible with each other, i.e. a huge "loss of information" between market researchers, strategists, and advertising creatives is the consequence– –• •Thus, the strategic development of brands happens "by coincidence" in many cases The brand strategy has a direct impact on the brand's success on the market, i.e. growth, market share, price, margins, and earnings – and thus on market capitalization and corporate value-2-Source: Roland Berger Strategy ConsultantsA brand strategy must result in the implementation of a conclusive, focused and efficient marketing mix – and must be economically viableThe five key questions for the strategic development of a brand1What is the "actual" position of a brand from the consumer's perspective ?(i.e. Actual Value Perception (AVP), Actual Value Projection, Actual Consumer Base) 2What "ideal" target position should the brand take in the competitive environment ?(i.e. a Target Value Proposition (TVP) that is strategically differentiated from the competition) 3What is an optimal migration path from the "actual" to the "ideal" brand position ?(i.e. mile stones from actual to target position of a brand) 4What are corresponding measurements for the entire marketing mix ?(i.e. Projected Value Propositions (PVP) that are consistent across the entire marketing mix) 5What are the costs involved and what is the impact on the business plan ?(i.e. Cost of re-positioning, consequences for turnover, margin and profitability)-3-Strategic Brand Management by Roland Berger is a five-step processPhase 3 Detailed conception of action plan for adjustment of marketing mix "Creative Check"? PVPProductrecruitsMarketing mixPhase 2 Brand strategy master plan Migration path from AVP to TVP Action plan Economic verificationPhase 4 Implementation of action plan Transformation of organizationdefinesMoment of truthTVPConsumerdefinesBrandPhase 5 Tracking Strategy reviewAVPPhase 1 Initial SituationAVP: TVP: PVP: MoT:Actual Value Perception: The perception of a brand as seen by the consumers Target Value Proposition: Future "ideal" brand position as result of the strategic process - and "direction" for entire marketing mix Projected Value Proposition: All the promises of the brand‘s marketing mix including advertising Moment-of-truth: The consumer "tests" the promises of a brand and creates/adjusts the brand‘s AVP in his or hers mindSource: Roland Berger Strategy Consultants-4-Roland Berger has developed a unique tool – the rb Profiler – to measure the Actual Value Perception of a brand as seen by the consumersSolidarityEPassionStimulationThrill&Fun Consumer needs that the users of the brand most often agree with – i.e. the most recognized value proposition of the brandNikeAVP - Actual Value Perception (828 vs. 721, zmax = 30) Consumer needs that the users of the brand most often disagree with – i.e. "aversions" that the brand might satisfyFair Nature Tranquil Purism 24/7 Service Smart Shopping Quality Proven Total Cost P.Efficency Customized Vitality Carefree Classic Clanning New&Cool–+Legend Fair Item, Consumer need, value propositionENeeds pole E = Emotional R = Rational + = More - = Less Need cluster Midfield area, high degree of consensus Pro-Item Anti-ItemPriceRSolutionSource: Roland Berger Business Analytics, Data from Emnid (Germany, Apr.2000, n=1.500, Population 14-65 yrs.)The rb Profiler, consisting of 19 general consumer values, desires and dreams is based on extensive quantitative market research and factor analysis (1)Rational valuesSolution Cluster [R+] Price & Cost Cluster [R-]QualityNeed for durability, reliability heavy duty performance, effectiveness, orderPersonal EfficiencyDesire to make the best out of time, best possible efficiency, expecting standby solutions, just-for-me availability, willing to pay moreSmart ShoppingSystematically seeking "value for money", active bargain hunting, clever attitudeServiceNeed for competent and practical advice, uncomplicated information, need for sensitivity, respect and honestyCustomisedNeed for maximum individuality, involvement, controllable exclusivity, uniqueness, demanding flexibility and varietyTotal CostSystematic purchase decision governed solely by cost24/7 - ProtechNeed for fast information and access, anytime, anywhere, independent, application of new/latest technology, pro-technological orientationsProvenNeed for successful experience, maximum reliability, security, tradition, routine, discipline, perfectionismConsumers who tend toConsumers who tend toMore consumptionSource: Roland Berger Strategy Consultants, Focus groups, Expert hearing, TNS Emnid market researchLess consumption-6-The rb Profiler, consisting of 19 general consumer values, desires and dreams is based on extensive quantitative market research and factor analysis (2)Emotional valuesStimulation Cluster [E+] Solidarity Cluster [E-]CarefreeNeed for spontaneity, playful diversity lightheartedness, "Hakuna Matata", "easygoing", optimismVitalityNeed for physical and mental fitness, liveliness and mobility, freedom of movement, activity, initiativeFairDesire not to exploit people, having solidarity and responsibility, high ethical standards, readiness for sacrifice and rebellionClanningNeed to belong, warmth, team spirit, desire for acceptance in a group, spending time with friends or familyThrill&FunNatureDesire for harmony with nature, high ecological standards, holistic view, trust in the "power" of natureThrill, adventure and risk seeking, need for self definition, personal challenge, rebellious escapismNew&CoolNeed to set trends, joy of innovation, avantgardistic thinking, elitist attitude, self-differentiation from the "masses", role playingPassionNeed to live out enthusiasm, profound emotion ability for admiration, desire for admiration, "Consumerism", the cult of brands Also: showing off, narcissismTranquilNeed for calmness, peace, relaxation, slowing down, de-stressing, avoiding stress, finding inner peace, regenerationClassicNeed for timeless elegance and style, beauty, aesthetics and design, latent sense of traditionalism Consumers who tend toPurismReduction to the essentials, simplicity, minimalism, understatementConsumers who tend toMore consumptionSource: Roland Berger Strategy Consultants, Focus groups, Expert hearing, TNS Emnid market researchLess consumption-7-The perception of the adidas brand is more "easy going", more conservative and politically more correct than the Nike brandNikeSolidarity Solidarity Fair E E Passion Stimulation Stimulation Thrill&FunadidasSolidarity Solidarity Fair E E Passion Stimulation Stimulation Thrill&FunNature Tranquil PurismClassicVitality Carefree New&CoolNature Tranquil PurismClassicVitality Carefree New&CoolClannigClannig– –Price Awareness Smart Shopping Service Quality ProvenTotal Cost24/7+ +– –Price Awareness Smart Shopping Service Quality24/7+ +Convenience CustomizedTotal Cost! ProvenConvenience CustomizedPrice PriceR RSolution SolutionPrice PriceR RSolution SolutionSource: Roland Berger Business Analytics, Data from Emnid (Germany, Apr.2000, n=1.500, Population 14-65 yrs.)The BMW umbrella brand is perceived as an excellent composition of [E+/R+] valuesSolidarityEPassionStimulationThrill&FunBMWAVP - Actual Value Perception all modelsFair Nature Tranquil Purism Vitality Carefree Classic Clanning New&CoolLegend Fair Item, Consumer need, value proposition–Price Awareness Smart Shopping24/7 Service Quality Proven Total Cost Convenience Customized+ENeeds pole E = Emotional R = Rational + = More - = Less Need cluster Midfield area, high degree of consensus Pro-Item Anti-ItemPriceR!ConflictSolutionSource: Roland Berger Business Analytics, Data from Emnid (Germany, Apr.2000, n=1.500, Population 14-65 yrs.)The rb Profiler offers four major applications in developing effective strategies and in managing brands successfullyAnalysis1.The rb Profiler reveals the strengths and weaknesses of a brand vis-à-vis the competition • the "perception" of a brand's value propositions by consumers • the "projection" of a brand's value propositions, i.e. in advertising • the "composition" of a brand's value propositions • the "strongholds" and characteristics of a brand's consumer base The rb Profiler helps develop an advanced consumer understanding and segmentation based on specific consumer values in a given marketStrategy2.3.The rb Profiler helps "engineer" an ideal value proposition that is strategically differentiated from the competitionManagement4.The rb Profiler helps to develop and to control a corresponding marketing mix- 10 -Min Max User share 0%20%40%60%80%ProtagonistsAntagonistsCompliance Brand UserBrand User AnalysisDistance from TVPMin Max Share 0%20%40%60%80%rb Scenario Generator...E+–RAVP1)1) 2)2) ConsumerCountConsumer Count Brand Non-UserBrand Non-UserDistance from TVP Min MaxShare 0%20%40%60%80%1)1) 2)2) rb Scenario Generator。