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Branding 101
Spring Semester




                                 copyright © 2007 clear!blue | confidential 1
Course description


Brief history of “Brands”

Why brands matter

Great brands =

Brands 2.0

Brands as conversations

Branding is everyone’s job



                             copyright © 2007 clear!blue | confidential 2
In the beginning… symbols




                       copyright © 2007 clear!blue | confidential 3
Then… Commodities




                    copyright © 2007 clear!blue | confidential 4
Then… Brands




               copyright © 2007 clear!blue | confidential 5
Later… USP’s




               copyright © 2007 clear!blue | confidential 6
Later… USP’s



      “Thick and Rich”




                   copyright © 2007 clear!blue | confidential 7
A Definition



 A product that provides functional benefits plus added
 values that some consumers value enough to buy.

                            John Philip Jones - “What’s in a Name”




                                           copyright © 2007 clear!blue | confidential 8
The Brand Manager




                    copyright © 2007 clear!blue | confidential 9
The Brand Manager




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The “Golden Age”




                   copyright © 2007 clear!blue | confidential 11
The “Military Age”



          target markets
      battle for
     marketshare
                   competitors
   strategies           captive
                       audiences
       campaigns

                        copyright © 2007 clear!blue | confidential 12
Positioning as the goal

                                Product
                                Attribute

                                      Competitor
       Competitor
                         Competitor

            Competitor                             Positioning
                                                    Option A
                            Competitor
Consumer                                                                    Consumer
 Profile                                                                     Profile
                                                   Competitor

                          Competitor
        Positioning
         Option B
                                                    Competitor




      Competitor
                                Product
                                Attribute


                                                   copyright © 2007 clear!blue | confidential 13
If all the bottling plants closed down…
Why Brand Matters:




          $67 Billion
            (68% of market capitalization!)




                                                      Source:
                                     “Best Global Brand 2006”
                                  Interbrand & BusinessWeek



                                copyright © 2007 clear!blue | confidential 15
Why Brand Matters:




$57 Billion
  (20% of market capitalization!)




                                    copyright © 2007 clear!blue | confidential 16
Why Brand Matters:


                           $28 Billion
                                    (39% of market capitalization!)




$57 Billion
  (20% of market capitalization!)




                                                                      copyright © 2007 clear!blue | confidential 17
Why Brand Matters:


                           $28 Billion
                                    (39% of market capitalization!)




$57 Billion
  (20% of market capitalization!)




                                                                      $12 Billion
                                                                          (8% of market capitalization!)

                                                                       copyright © 2007 clear!blue | confidential 18
Why Brand Matters:


                           $28 Billion
                                    (39% of market capitalization!)




                                                                       $11 Billion
                                                                            (41% of market capitalization!)




$57 Billion
  (20% of market capitalization!)




                                                                      $12 Billion
                                                                          (8% of market capitalization!)

                                                                       copyright © 2007 clear!blue | confidential 19
Why Brand Matters:


                           $28 Billion
                                    (39% of market capitalization!)




                                                                                         $11 Billion
                                                                                              (41% of market capitalization!)



                                                   $7 Billion
                                                       (15% of market capitalization!)




$57 Billion
  (20% of market capitalization!)




                                                                                     $12 Billion
                                                                                            (8% of market capitalization!)

                                                                                         copyright © 2007 clear!blue | confidential 20
Why Brand Matters:


                           $28 Billion
                                     (39% of market capitalization!)




                                                                                           $11 Billion
                                                                                                (41% of market capitalization!)



                                                     $7 Billion
                                                         (15% of market capitalization!)




$57 Billion
  (20% of market capitalization!)




                                                                                       $12 Billion
                           $9 Billion                                                         (8% of market capitalization!)

                                                                                           copyright © 2007 clear!blue | confidential 21
                                    (12% of market capitalization!)
Why Brand Matters:


                           $28 Billion
                                     (39% of market capitalization!)




                                                                                           $11 Billion
                                                                                                (41% of market capitalization!)



                                                     $7 Billion
                                                         (15% of market capitalization!)




                                                                           $3 Billion
$57 Billion                                                                      (13% of market capitalization!)
  (20% of market capitalization!)




                                                                                       $12 Billion
                           $9 Billion                                                         (8% of market capitalization!)

                                                                                           copyright © 2007 clear!blue | confidential 22
                                    (12% of market capitalization!)
Definition (revisited)


The commercial equivalent of a
reputation….Guideposts for consumers wandering
through the new economy’s more bewildering blizzard
of choices….an antidote to commoditized production
and brutal price competition….”trustmarks”

                                              Wired magazine




                                        copyright © 2007 clear!blue | confidential 23
More detail…

What great brands “do”….

 A great brand is in it for the long haul.

 A great brand can be anything

 A great brand knows itself

 A great brand invents or reinvents an entire category

 A great brand taps into emotions

 A great brand is a story that’s never completely told

 A great brand has design consistency

 A great brand is relevant

                                                          Scott Bedbury




                                             copyright © 2007 clear!blue | confidential 24
2.0
                  Branding 101
Spring Semester




                                       copyright © 2007 clear!blue | confidential 25
Brands Are Dead




       copyright © 2007 clear!blue | confidential 26
Cause of Death




    copyright © 2007 clear!blue | confidential 27
According to Michael Eisner, the word “brand” is

“overused, sterile and unimaginative”
1500 brand contacts per day

35,000 if you go to the grocery store
405,000,000 hits!!!
2.0
           Branding 101

Marlboro
  Friday




                            copyright © 2007 clear!blue | confidential 31
2.0
Branding 101



Brand and product saturation

Consumer empowerment

Distribution efficiencies

Rise of niche markets




                            copyright © 2007 clear!blue | confidential 32
2.0
Branding 101

                 Brand and
                 product saturation




                     copyright © 2007 clear!blue | confidential 33
2.0
Branding 101

                 Consumer
                 empowerment




                 copyright © 2007 clear!blue | confidential 34
2.0
Branding 101

                 Distribution
                 efficiencies




                     copyright © 2007 clear!blue | confidential 35
2.0
Branding 101

                 Rise of
                 Niche markets




                    copyright © 2007 clear!blue | confidential 36
The Bar is High!




                         crap”
‘‘95% of everything is                   Theodore Sturgeon




“…including brands.”     Chip Humitz




                                       copyright © 2007 clear!blue | confidential 37
homework
My Homework




              copyright © 2007 clear!blue | confidential 39
Why do we love?
Focus, Consistency & Authenticity


      brand is a living entity, and it is enriched or
‘‘A
undermined cumulatively overtime, the product of

a thousand small gestures.’’
                                                Michael Eisner




                                       copyright © 2007 clear!blue | confidential 41
Focus, Consistency & Authenticity




FOCUS!!
We are in the business of ________.




                               copyright © 2007 clear!blue | confidential 42
Focus, Consistency & Authenticity



                      cosmetics.
“In the factory we make                                      In
the store we sell hope.”


                                   Charles Revson




                          copyright © 2007 clear!blue | confidential 43
copyright © 2007 clear!blue | confidential 44
A Brand is a conversation




                        Source: David Armano
                        copyright © 2007 clear!blue | confidential 45
A Brand is a conversation
A Brand is a conversation

• Two power-house brands

• Top-notch product design

• Great cross-product integration

• Online component delivers relevant utility… actually
  contributes to training

• Website becomes gathering point for running
  enthusiasts… has social media characteristics

• Site is as valuable as the physical products
A Brand is a conversation



   1-21
       6-33
           3-18
               10
• Complex series of hidden messages - on t-shirts,
  USB drives left in bathrooms, phone messages, web
  sites…

• Leaked album tracks quickly downloaded

• GarageBand track released

• Buzz built among fans on fan sites, Digg, message
  boards, etc.

• Wikipedia entry

• All before April 17th album release!
A Brand is a conversation

• Doll purchase required

• Build online “home”

• Text message friends in virtual world

• Play games to earn “Kinz Cash”

• Average time on Webkinz = 2+ hours (YouTube = 31
  minutes)

• 870,000 unique visitors/month

• “I get all my homework done during recess because then I
  can go home and play Webkinz.”
A Brand is a conversation




                        copyright © 2007 clear!blue | confidential 50
earn their way
Brands need to
into their audiences’ tribes.
Branding “Ingredients”
And in the end…
…Each of the “gestures” matters

When we consider our clients audience, are we one
of those “thousand tiny gestures”…are we working
to create “hope” and not just “cosmetics”?




                                  copyright © 2007 clear!blue | confidential 54
Class
dismissed

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Branding 101 PDF

  • 1. Branding 101 Spring Semester copyright © 2007 clear!blue | confidential 1
  • 2. Course description Brief history of “Brands” Why brands matter Great brands = Brands 2.0 Brands as conversations Branding is everyone’s job copyright © 2007 clear!blue | confidential 2
  • 3. In the beginning… symbols copyright © 2007 clear!blue | confidential 3
  • 4. Then… Commodities copyright © 2007 clear!blue | confidential 4
  • 5. Then… Brands copyright © 2007 clear!blue | confidential 5
  • 6. Later… USP’s copyright © 2007 clear!blue | confidential 6
  • 7. Later… USP’s “Thick and Rich” copyright © 2007 clear!blue | confidential 7
  • 8. A Definition A product that provides functional benefits plus added values that some consumers value enough to buy. John Philip Jones - “What’s in a Name” copyright © 2007 clear!blue | confidential 8
  • 9. The Brand Manager copyright © 2007 clear!blue | confidential 9
  • 10. The Brand Manager copyright © 2007 clear!blue | confidential 10
  • 11. The “Golden Age” copyright © 2007 clear!blue | confidential 11
  • 12. The “Military Age” target markets battle for marketshare competitors strategies captive audiences campaigns copyright © 2007 clear!blue | confidential 12
  • 13. Positioning as the goal Product Attribute Competitor Competitor Competitor Competitor Positioning Option A Competitor Consumer Consumer Profile Profile Competitor Competitor Positioning Option B Competitor Competitor Product Attribute copyright © 2007 clear!blue | confidential 13
  • 14. If all the bottling plants closed down…
  • 15. Why Brand Matters: $67 Billion (68% of market capitalization!) Source: “Best Global Brand 2006” Interbrand & BusinessWeek copyright © 2007 clear!blue | confidential 15
  • 16. Why Brand Matters: $57 Billion (20% of market capitalization!) copyright © 2007 clear!blue | confidential 16
  • 17. Why Brand Matters: $28 Billion (39% of market capitalization!) $57 Billion (20% of market capitalization!) copyright © 2007 clear!blue | confidential 17
  • 18. Why Brand Matters: $28 Billion (39% of market capitalization!) $57 Billion (20% of market capitalization!) $12 Billion (8% of market capitalization!) copyright © 2007 clear!blue | confidential 18
  • 19. Why Brand Matters: $28 Billion (39% of market capitalization!) $11 Billion (41% of market capitalization!) $57 Billion (20% of market capitalization!) $12 Billion (8% of market capitalization!) copyright © 2007 clear!blue | confidential 19
  • 20. Why Brand Matters: $28 Billion (39% of market capitalization!) $11 Billion (41% of market capitalization!) $7 Billion (15% of market capitalization!) $57 Billion (20% of market capitalization!) $12 Billion (8% of market capitalization!) copyright © 2007 clear!blue | confidential 20
  • 21. Why Brand Matters: $28 Billion (39% of market capitalization!) $11 Billion (41% of market capitalization!) $7 Billion (15% of market capitalization!) $57 Billion (20% of market capitalization!) $12 Billion $9 Billion (8% of market capitalization!) copyright © 2007 clear!blue | confidential 21 (12% of market capitalization!)
  • 22. Why Brand Matters: $28 Billion (39% of market capitalization!) $11 Billion (41% of market capitalization!) $7 Billion (15% of market capitalization!) $3 Billion $57 Billion (13% of market capitalization!) (20% of market capitalization!) $12 Billion $9 Billion (8% of market capitalization!) copyright © 2007 clear!blue | confidential 22 (12% of market capitalization!)
  • 23. Definition (revisited) The commercial equivalent of a reputation….Guideposts for consumers wandering through the new economy’s more bewildering blizzard of choices….an antidote to commoditized production and brutal price competition….”trustmarks” Wired magazine copyright © 2007 clear!blue | confidential 23
  • 24. More detail… What great brands “do”…. A great brand is in it for the long haul. A great brand can be anything A great brand knows itself A great brand invents or reinvents an entire category A great brand taps into emotions A great brand is a story that’s never completely told A great brand has design consistency A great brand is relevant Scott Bedbury copyright © 2007 clear!blue | confidential 24
  • 25. 2.0 Branding 101 Spring Semester copyright © 2007 clear!blue | confidential 25
  • 26. Brands Are Dead copyright © 2007 clear!blue | confidential 26
  • 27. Cause of Death copyright © 2007 clear!blue | confidential 27
  • 28. According to Michael Eisner, the word “brand” is “overused, sterile and unimaginative”
  • 29. 1500 brand contacts per day 35,000 if you go to the grocery store
  • 31. 2.0 Branding 101 Marlboro Friday copyright © 2007 clear!blue | confidential 31
  • 32. 2.0 Branding 101 Brand and product saturation Consumer empowerment Distribution efficiencies Rise of niche markets copyright © 2007 clear!blue | confidential 32
  • 33. 2.0 Branding 101 Brand and product saturation copyright © 2007 clear!blue | confidential 33
  • 34. 2.0 Branding 101 Consumer empowerment copyright © 2007 clear!blue | confidential 34
  • 35. 2.0 Branding 101 Distribution efficiencies copyright © 2007 clear!blue | confidential 35
  • 36. 2.0 Branding 101 Rise of Niche markets copyright © 2007 clear!blue | confidential 36
  • 37. The Bar is High! crap” ‘‘95% of everything is Theodore Sturgeon “…including brands.” Chip Humitz copyright © 2007 clear!blue | confidential 37
  • 39. My Homework copyright © 2007 clear!blue | confidential 39
  • 40. Why do we love?
  • 41. Focus, Consistency & Authenticity brand is a living entity, and it is enriched or ‘‘A undermined cumulatively overtime, the product of a thousand small gestures.’’ Michael Eisner copyright © 2007 clear!blue | confidential 41
  • 42. Focus, Consistency & Authenticity FOCUS!! We are in the business of ________. copyright © 2007 clear!blue | confidential 42
  • 43. Focus, Consistency & Authenticity cosmetics. “In the factory we make In the store we sell hope.” Charles Revson copyright © 2007 clear!blue | confidential 43
  • 44. copyright © 2007 clear!blue | confidential 44
  • 45. A Brand is a conversation Source: David Armano copyright © 2007 clear!blue | confidential 45
  • 46. A Brand is a conversation
  • 47. A Brand is a conversation • Two power-house brands • Top-notch product design • Great cross-product integration • Online component delivers relevant utility… actually contributes to training • Website becomes gathering point for running enthusiasts… has social media characteristics • Site is as valuable as the physical products
  • 48. A Brand is a conversation 1-21 6-33 3-18 10 • Complex series of hidden messages - on t-shirts, USB drives left in bathrooms, phone messages, web sites… • Leaked album tracks quickly downloaded • GarageBand track released • Buzz built among fans on fan sites, Digg, message boards, etc. • Wikipedia entry • All before April 17th album release!
  • 49. A Brand is a conversation • Doll purchase required • Build online “home” • Text message friends in virtual world • Play games to earn “Kinz Cash” • Average time on Webkinz = 2+ hours (YouTube = 31 minutes) • 870,000 unique visitors/month • “I get all my homework done during recess because then I can go home and play Webkinz.”
  • 50. A Brand is a conversation copyright © 2007 clear!blue | confidential 50
  • 51. earn their way Brands need to into their audiences’ tribes.
  • 53. And in the end…
  • 54. …Each of the “gestures” matters When we consider our clients audience, are we one of those “thousand tiny gestures”…are we working to create “hope” and not just “cosmetics”? copyright © 2007 clear!blue | confidential 54