HOWTOBRIDGETHEDISTANCEBETWEENBUSINESSSTRATEGYANDDESIGNAVISUALPRESENTATIONBYMARTYNEUMEIERNEUTRONLLC.COMProducedbyNEUTRONLLCinpartnershipwithNEWRIDERSPUBLISHINGandTHEAMERICANINSTITUTEOFGRAPHICARTSCopyright©2003NeutronLLC.Foreducationaluseonly.Nopartofthispresentationmaybepublished,sold,orotherwiseusedforprofitwithoutthewrittenpermissionoftheauthor.12WHATYOU’LLLEARN:AmoderndefinitionofbrandThefivedisciplinesofbrand-buildingNEUTRONLLC.COMREADY?NEUTRONLLC.COMLET’SSTARTBYDISPELLINGSOMEMYTHS.NEUTRONLLC.COMFIRSTAbrandisnotalogo.NEUTRONLLC.COMNEUTRONLLC.COMSECONDAbrandisnotanidentity.NEUTRONLLC.COMNEUTRONLLC.COMFINALLYAbrandisnotaproduct.NEUTRONLLC.COMNEUTRONLLC.COMSowhatexactlyisabrand?NEUTRONLLC.COMABRANDISAPERSON’SGUTFEELINGABOUTAPRODUCT,SERVICE,ORORGANIZATION.NEUTRONLLC.COMNEUTRONLLC.COMInotherwords…NEUTRONLLC.COMIT’SNOTWHATYOUSAYITIS.NEUTRONLLC.COMIT’SWHATTHEYSAYITIS.NEUTRONLLC.COM123WHYISBRANDINGSOHOT?PeoplehavetoomanychoicesandtoolittletimeMostofferingshavesimilarqualityandfeaturesWetendtobaseourbuyingchoicesontrustNEUTRONLLC.COMTHEREARE1,349CAMERASONTHEMARKET.HOWDOYOUDECIDEWHICHONETOBUY?NEUTRONLLC.COMTRUSTNEUTRONLLC.COMNEUTRONLLC.COMDoesabrandhaveadollarvalue?NEUTRONLLC.COMANDHOW.NEUTRONLLC.COM5waystomeasurebrandvalue:1PRICEPREMIUM2CUSTOMERPREFERENCE3REPLACEMENTCOST4STOCKPRICE5FUTUREEARNINGSNEUTRONLLC.COMTHISSELECTIONFROMINTERBRAND’STOP100LISTSHOWSWHYBRANDSAREWORTHPROTECTING:2001%CHANGEBRANDVALUEBRANDNAMECOCA-COLAMICROSOFTIBMFORDMERCEDESHONDABMWKODAKGAPNIKEPEPSIXEROXAPPLESTARBUCKSBRANDVALUE($MM)68,94565,06852,75230,09221,72814,63813,85810,8018,7467,5896,2146,0195,4641,757BRANDVS.PREVIOUSYEAR-5%-7%-1%-17%+3%-4%+7%-9%-6%-5%-6%-38%-17%+32%AS%OFMARKETCAP61%17%27%66%48%33%62%82%35%66%9%93%66%21%NEUTRONLLC.COMCOKE’SMARKETCAP,INCLUDINGBRANDVALUE:$120BILLIONWITHOUTTHEBRAND,COKE’SGLASSWOULDBEHALFEMPTY.COKE’SMARKETCAP,NOTINCLUDINGBRANDVALUE:$50BILLIONNEUTRONLLC.COMThemainpurposeofbrandingistogetmorepeopletobuymorestuffformoreyearsatahigherprice.NEUTRONLLC.COMSUCCESSBANGBUCKNEUTRONLLC.COMS=BbBrandBusinessNEUTRONLLC.COMPREDICTIONBRANDWILLBECOMETHEMOSTPOWERFULSTRATEGICTOOLSINCETHESPREADSHEET.NEUTRONLLC.COMPROBLEMInmostcompanies,STRATEGYisseparatedfromCREATIVITYbyawidegap.NEUTRONLLC.COMSTRATEGICTHINKERSAnalyticalLogicalLinearNumericalVerbalNEUTRONLLC.COMCREATIVETHINKERSIntuitiveEmotionalSpatialVisualPhysicalDOESTHELEFTBRAINKNOWWHATTHERIGHTBRAINISDOING?NEUTRONLLC.COMWhenbothsidesworktogether,youcanbuildacharismaticbrand.NEUTRONLLC.COMACHARISMATICBRANDisanyproduct,service,ororganizationforwhichpeoplebelievethere’snosubstitute.NEUTRONLLC.COMQUIZ:Whichofthesebrandsarecharismatic?NEUTRONLLC.COMAMAZONAPPLEBURGERKINGCOLDWATERCREEKDASANIDISNEYDKBOOKSEVEREADYFORDGENERALELECTRICGOOGLEHANESHITACHIHOMEDEPOTIKEAKMARTKRISPYKREMELEVI’SLONGSDRUGSMACY’SMINICOOPERNEWSWEEKNISSANNORDSTROMOXOGOODGRIPSPEPSI-COLAPRELLRCAREEBOKRUBBERMAIDSAFEWAYSAMSUNGSEARSSOUTHWESTAIRLINESUNITEDARTISTSVIRGINQUIZ:Whichofthesebrandsarecharismatic?NEUTRONLLC.COMAMAZONAPPLEBURGERKINGCOLDWATERCREEKDASANIDISNEYDKBOOKSEVEREADYFORDGENERALELECTRICGOOGLEHANESHITACHIHOMEDEPOTIKEAKMARTKRISPYKREMELEVI’SLONGSDRUGSMACY’SMINICOOPERNEWSWEEKNISSANNORDSTROMOXOGOODGRIPSPEPSI-COLAPRELLRCAREEBOKRUBBERMAIDSAFEWAYSAMSUNGSEARSSOUTHWESTAIRLINESUNITEDARTISTSVIRGINAnybrandcanbecharismatic.NEUTRONLLC.COMNEUTRONLLC.COMEVENYOURS.Butfirst,youhavetomastertheFIVENEUTRONLLC.COMDISCIPLINESOFBRAND-BUILDING.DISCIPLINE1:DIFFERENTIATENEUTRONLLC.COMNEUTRONLLC.COMWE’REHARDWIREDTONOTICEONLYWHAT’SDIFFERENT.NEUTRONLLC.COMSOLUTION:BEDIFFERENT.NEUTRONLLC.COMFEATURES“Whatitis”1900BENEFITS“Whatitdoes”1925EXPERIENCE“Whatyoufeel”1950IDENTIFICATION“Whoyouare”2000Marketingtodayisaboutcreatingtribes.NEUTRONLLC.COMPeoplejoindifferenttribesfordifferentactivities.DRIVINGVOLKSWAGENREADINGAMAZONCOMPUTINGDELLSPORTSNIKECOOKINGWILLIAMS-SONOMABANKINGCITIBANKNEUTRONLLC.COMTRAVELORBITZONSUNDAYSTHEYWORSHIPHARLEY,GODOFTHEOPENROAD.NEUTRONLLC.COMNEUTRONLLC.COMThethreemostimportantwordsindifferentiatingyourbrand:1FOCUSNEUTRONLLC.COM2FOCUSNEUTRONLLC.COM3FOCUSNEUTRONLLC.COMISTHISHOWYOURCUSTOMERSSEEYOU?NEUTRONLLC.COM123THEFOCUSTEST:Whoareyou?Whatdoyoudo?Whydoesitmatter?NEUTRONLLC.COMUnlessyouhavecompellinganswerstothesequestions,youneedmorefocus.NEUTRONLLC.COMNEUTRONLLC.COMThemostcommonreasonforlossoffocusisILL-CONSIDEREDBRANDEXTENSIONS.EXAMPLE:FOCUSEDUNFOCUSEDNEUTRONLLC.COMPORSCHE=SPORTSCARSPORSCHE=SPORTSCARS+SUVSNEUTRONLLC.COMEXAMPLE:NEUTRONLLC.COMTHEGOODGRIPSBRANDHASGROWNSTRONGERWITHEVERYBRANDEXTENSION.DISCIPLINE2:COLLABORATENEUTRONLLC.COMLIKEBUILDINGACATHEDRAL,BUILDINGABRANDISACOLLABORATIVEPROJECT.NEUTRONLLC.COMNEUTRONLLC.COMIttakesavillagetobuildabrand.THEREARETHREEBASICMODELSFORORGANIZINGBRANDCOLLABORATION:NEUTRONLLC.COMTheONE-STOPSHOPcontainstheresourcestodevelopandDIRECTRESPONSEADVERTISINGCREATIVESERVICESNEUTRONLLC.COMstewardthebrand.EXHIBITSRESEARCHPOPDISPLAYSIDENTITYPUBLICRELATIONSEVENTSPRODUCTSUPPLIERSPUBLICATIONSWEBDESIGNPROMOTIONSBRANDSTRATEGYDESIGNNAMINGPACKAGINGANNUALREPORTSCOMPANYONE-STOPSHOPSCORECARDEasytomanagePromi