Building a R.E.D Brand R ic hard Wallis A u g u s t 2 0 1 9 (VOX - - PowerPoint PPT Presentation

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Building a R.E.D Brand R ic hard Wallis A u g u s t 2 0 1 9 (VOX - - PowerPoint PPT Presentation

May 16, 2023 222 likes •1.46k views

Building a R.E.D Brand R ic hard Wallis A u g u s t 2 0 1 9 (VOX 2018) 70% Global market share in 2010 (SOURCE: VOX 2018) 70% 54% Global market Global market share in 2010 share in 2018 (SOURCE: VOX 2018) (SOURCE: VOX 2018) #1

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R ic hard Wallis

A u g u s t 2 0 1 9

Building a R.E.D Brand

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SLIDE 2 (VOX 2018)
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70%

Global market share in 2010

(SOURCE: VOX 2018)
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70%

Global market share in 2010

54%

Global market share in 2018

(SOURCE: VOX 2018)
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SLIDE 7 (SOURCE: VOX 2018)
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Beer in America 2000

#1

(SOURCE: USATODAY 2018)
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14M

Barrels sold in 2016

50M

Barrels sold in 1988

(SOURCE: BLOOMBERG 2017 : USA Today 2017)

4.6% US RETAIL SALES 2017

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Estimated Loss

  • n New York City

hotel revenue 2014 - 15

$2.1B

(SOURCE: HOTEL ASSOCIATION OF NEW YORK CITY 2015)
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WHAT HAPPENED?

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OLD WORLD “Rules of Thumb”

Rational / Emotional Decisions Frequency Fighting for Hearts Differentiate or Die Message Comprehension Attitudes Change Behaviors

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NEW INSIGHTS REVEAL HOW THE HUMAN MIND REALLY WORKS

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Rational / Emotional Decisions

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Rational / Emotional Decisions Intuitive Decisions

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Rational / Emotional Decisions

Cultural Signal Cultural Signal Cultural Signal Intuition forcing him to follow cultural signals

Intuitive Decisions

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Rational / Emotional Decisions Intuitive Decisions

Don’t be this brand!

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Rational / Emotional Decisions Intuitive Decisions

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Attitudes Change Behaviors

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Attitudes Change Behaviors Behaviors Change Attitudes

Messaging to change Beliefs Changes their Feelings Changes their actions Make it easier to use the brand Changes their BELIEFS Changes their FEELINGS

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Attitudes Change Behaviors Behaviors Change Attitudes

Messaging to change Beliefs Changes their Feelings Changes their actions Make it easier to use the brand Changes their BELIEFS Changes their FEELINGS

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Fighting for Hearts

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Fighting for Hearts Fighting for Attention Emotional Connection Mental Availability

We Buy Because:

✔

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OLD WORLD “Rules of Thumb” NEW WORLD “Based in Science”

Rational / Emotional Decisions Intuitive Decisions Frequency Penetration Fighting for Hearts Fighting for Attention Differentiate or Die Be Distinctive or Disappear Message Comprehension Emotional Response Attitudes Change Behaviors Behaviors Change Attitudes

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A MARKETING APPROACH BASED IN SCIENCE

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WHAT DOES IT MEAN?

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❑ RELEVANT TO MY LIFE ❑ RELEVANT TO MODERN CULTURE ❑ EASY TO AFFORD ❑ EASY TO ORDER ❑ EASY TO GET ASSETS / CAMPAIGNS THAT ARE: ❑ UNIQUE ❑ OWNABLE ❑ CONSISTENT

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❑ RELEVANT TO MY LIFE ❑ RELEVANT TO MODERN CULTURE

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Relevance is basically getting the brand back in line—or ahead of culture. And it works because it taps into Social Norms and herding instinct—we all want to be doing what others are doing.

Rational / Emotional Decisions Intuitive Decisions

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“The Traditional Girl” “The Mother”

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52.4%

When jobs are scarce, men should have more right to a job than women

75.9%

When a mother works for pay, the children suffer

50.9%

On the whole, men make better business executives than women do

(SOURCE: WORLD VALUES SURVEY 2010-2014 WAVE)
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Don’t be this brand!

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111% Sales growth 42% unaided brand awareness $12.3 million in earned media coverage $2.6 billion earned-media impressions

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Estimated Loss

  • n New York City

hotel revenue 2014 - 15

$2.1B

(SOURCE: HOTEL ASSOCIATION OF NEW YORK CITY 2015)
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SLIDE 42
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SLIDE 43 (SOURCE: GOOGLE N-GRAM)
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The Tourist Starter Pack

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https://vimeo.com/198909649

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IN US CITIES WITH THE LARGEST AIRBNB MARKET SHARE

1.3 %

FEWER HOTEL NIGHTS BOOKED

1.5 %

LOSS IN HOTEL REVENUE.

3.7 %

LOSS IN VARIABLE PROFITS

(SOURCE: FORBES 2018)
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BRAND LESSON #1

THE IRRELEVANT ONES SUFFER

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R

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❑ RELEVANT TO MY LIFE ❑ RELEVANT TO MODERN CULTURE ❑ EASY TO AFFORD ❑ EASY TO ORDER ❑ EASY TO GET

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EASE

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EASE IS GROWING IN IMPORTANCE

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MORE COGNITIVE CLUTTER

EASE IS GROWING IN IMPORTANCE BECAUSE…

MORE PRESSURE HUMANS ARE HARDWIRED TO TAKE THE PATH OF LEAST RESISTANCE

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=

GENERIC BRANDS ARE JUST AS GOOD, IF NOT BETTER, THAN LEGACY NAME BRANDS

AND TODAY WE LIVE IN THE AGE OF PRODUCT PARITY…

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TODAY HOW EASY IT IS TO GET SOMETHING IS JUST AS IMPORTANT AS WHAT YOU GET

BACK THEN TODAY

THE ULTIMATE DEEP DISH PIZZA PEPPERONI FEAST PIZZA
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MOST NEW FOOD COMPANIES ARE ABOUT EASE

(SOURCE: GLOBAL BRAND SIMPLICITY INDEX 2017) MEAL KITS / READY TO EAT 36% FOOD DELIVERY 27% ONLINE GROCERIES 18% MEAL SERVICES (SENIOR CARE) 8% ONLINE COUPONS / SAVINGS 11% NETWORK OF US COMPANIES THAT HAVE RECEIVED PRIVATE INVESTMENT COLORED BY THEME. NODES REPRESENT COMPANIES.

=92%

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FRICTIONLESS COMMERCE IS CREATING REAL VALUE

Company 1 2 Nordstrom Amazon JCPenney Kohl's Macy's Sears Best Buy T arget Walmart 214.0 51.3 28.4 27.8 24.2 24.2 18.1 17.5 12.4 M A R K E T C A P I T A L I Z A T I O N , I N B I L L I O N S 2 0 0 6 (SOURCE: YAHOO FINANCE 2017)
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FRICTIONLESS COMMERCE IS CREATING REAL VALUE

Company 1 2 0 1 Nordstrom Amazon JCPenney Kohl's Macy's Sears Best Buy T arget Walmart 214.0 51.3 28.4 27.8 24.2 24.2 18.1 17.5 12.4 309.8 42.5 22.5 0.4 8.2 11.3 1.2 623.8 8.7 M A R K E T C A P I T A L I Z A T I O N , I N B I L L I O N S 2 0 0 6 2 0 1 8 (SOURCE: YAHOO FINANCE 2017)
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PRIORITIZE INVESTING IN THE BIGGEST PAIN POINTS OF YOUR BUSINESS

2 3 4 5 1

THE PAIN OF

GETTING

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1

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MAKE THE TRANSACTION AUTOMATIC

REVENUE 10% 2017 2% US GROCERY SALES 2017

NEEDS PAINLESSLY DELIVERED THE PAIN OF RECOGNIZING THE NEED (SOURCE: BUSINESS INSIDER, NIELSEN 2017: MARKETWATCH 2018 )
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SEAMLESSLY EMBED YOUR OFFERING INTO THEIR ROUTINE

INTEGRATING WANTS INTO THEIR EVERYDAY ROUTINE

2X sales in China 2017 Revenue 38.6% 2017

THE PAIN OF RECOGNIZING THE WANT (SOURCE: SEARS HOLDING REPORTS 2018: MARKETING-INTERACTIVE 2017) BURBERRY – WECHAT STORE (CHINA)
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2 1

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GIVE THEM THE CONFIDENCE OF SOCIAL PROOF

AMAZON RATINGS & REAL TIME BESTSELLERS

REVENUE 37.11% 2018 REVENUE 6% 2018

GIVE THEM CONFIDENCE IN THEIR CHOICES THROUGH CONSUMER RATINGS THE PAIN OF HAVING TO MAKE AN UNINFORMED CHOICE (SOURCE: MACROTRENDS 2018)
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2 3 1

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SIMPLIFY THE PRICING

Sales 118% 2014-18

Sales 11.2% 2017

PAINLESS SIMPLIFIED PRICING CONFUSING, STRESSFUL PRICING (SOURCE: WASHINGTONPOST 2018: CRUNCHBASE 2018)
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2 3 4 1

THE PAIN OF

GETTING

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GET IT TO THEM WHEN & WHERE THEY’RE AT

Revenue 51% 2018 SSG .7% 2018

GETTING WHAT YOU WANT WHERE YOU’RE AT THE PAIN OF GOING TO GET WHAT YOU WANT (SOURCE: REUTERS 2018: GRUBHUB 2018)
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2 3 4 5 1

THE PAIN OF

GETTING

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SEAMLESSLY PREVENT & RESOLVE DISSATISFACTION

PAINLESS CONFLICT RESOLUTION THE PAIN OF DISSATISFACTION

7.3% Gross Income Q3 2018

AI-POWERED SERVICE CHATBOTS FOR DISPUTE RESOLUTION

10.74% Gross Income 2017

(SOURCE: MARKETWATCH 2018 :KLM ANNUAL REPORT 2018)
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SLIDE 74 1 THE P AIN OF

R E C O G N I Z I N G

THE NEED/ WANT 4 THE P AIN OF

GETTING

2 T H E P A I N O F

CHOOSING

3 T H E P A I N O F

ORDERING + P AYING

5 THE P AIN OF

P O S T P U R C H A S E

FOUNDATIONAL MARKETING STRATEGIES FOR FRICTIONLESS COMMERCE

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70%

Global market share in 2010

54%

Global market share in 2018

(SOURCE: VOX 2018)
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SLIDE 77 (SOURCE: VOX 2018)

Gillette Dollar Shave Club

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BRAND LESSON #2 THE DIFFICULT ONES GET REPLACED

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R E

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DISTINCTIVE

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❑ RELEVANT TO MY LIFE ❑ RELEVANT TO MODERN CULTURE ❑ EASY TO AFFORD ❑ EASY TO ORDER ❑ EASY TO GET ASSETS / CAMPAIGNS THAT ARE: ❑ UNIQUE ❑ OWNABLE ❑ CONSISTENT

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Fighting for Hearts Fighting for Attention

istinctiveness drives sales when you create salience

with a breakthrough use of consistent ownable equities

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What is Distinctiveness exactly? It is NOT breakthrough.

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What is Distinctiveness exactly?

Unique x Ownable x Consistent

Breakthrough= SALIENCE =

SALES

( )

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Relevant…but… Not Unique Not Ownable Not Consistent (?) (Not Breakthrough)

NOT Distinctive

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Unique Ownable Consistent

Distinctive

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NOT Distinctive

Relevant…but… Not Unique Not Ownable Not Consistent (?) (Not Breakthrough)

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Unique Ownable Consistent

Distinctive

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NOT Distinctive

Relevant…but… Not Unique Not Ownable Consistent (Not Breakthrough)

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90

Unique Ownable Consistent

Distinctive

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Breakthrough Distinctive

Compelling

Breakthrough: Bold enough to break through the clutter and grab attention Distinctive: Consistently uses or builds brand assets that link directly to the brand and make it salient Compelling: Does the message convince me

3 BASIC ELEMENTS TO ADVERTISING THAT WORKS

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SLIDE 92 Breakthrough Distinctive Compelling

Mountain Dew Kickstart PUPPYMONKEYBABY 2016

BREAKTHROUGH ADVERTISING

Is bold enough to break through the clutter and grab attention—but it’s not always consistent to the brand

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SLIDE 93 Breakthrough Distinctive Compelling

Bud Light “DILLY DILLY”

BREAKTHROUGH & DISTINCTIVE ADVERTISING

Is both bold enough to break through the clutter and grab attention AND makes the brand salient through the consistent use of brand assets

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SLIDE 94 Breakthrough Distinctive Compelling

Wendy’s “4 FOR 4”

COMPELLING ADVERTISING

Is primarily focused on driving a persuasive message

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SLIDE 95 Breakthrough Distinctive Compelling

THE GOAL IS TO CREATE ADVERTISING THAT IS BREAKTHROUGH, DISTINCTIVE AND COMPELLING

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HOW WE GET DISTINCTIVE

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THERE ARE TWO WAYS TO BUILD DISTINCTIVE BRAND ASSETS

REJUVINATE EXISTING DISTINCTIVE BRAND ASSETS CREATE NEW DISTINCTIVE BRAND ASSETS

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REJUVINATE EXISTING DISTINCTIVE BRAND ASSETS CREATE NEW DISTINCTIVE BRAND ASSETS

THERE ARE TWO APPROACHES TO DISTINCTIVE BRAND ASSETS

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EIGHT WAYS OF BUILDING NEW DISTINCTIVE BRAND ASSETS

WAYS INTO DISTINCTIVENESS USE OR CREATE A CHARACTER BUILD A DISTINCTIVE BRAND WORLD CONSISTENT AD FRAMEWORK STICKY JINGLES, CATCH PHRASES AND TAGLINES OWN A SPECIFIC MUSE PRODUCT OR SERVICE STUNTS DONE IN A CONSISTENT TONE OWN A CAUSE
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EIGHT WAYS OF BUILDING NEW DISTINCTIVE BRAND ASSETS

WAYS INTO DISTINCTIVENESS USE OR CREATE A CHARACTER BUILD A DISTINCTIVE BRAND WORLD CONSISTENT AD FRAMEWORK STICKY JINGLES, CATCH PHRASES AND TAGLINES OWN A SPECIFIC MUSE PRODUCT OR SERVICE STUNTS DONE IN A CONSISTENT TONE OWN A CAUSE
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USE OR CREATE A CHARACTER

DISTINCTIVNESS

Characters can become iconic representations of the brand and are easily remembered

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EIGHT WAYS OF BUILDING NEW DISTINCTIVE BRAND ASSETS

WAYS INTO DISTINCTIVENESS USE OR CREATE A CHARACTER BUILD A DISTINCTIVE BRAND WORLD CONSISTENT AD FRAMEWORK STICKY JINGLES, CATCH PHRASES AND TAGLINES OWN A SPECIFIC MUSE PRODUCT OR SERVICE STUNTS DONE IN A CONSISTENT TONE OWN A CAUSE
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SLIDE 103 DISTINCTIVNESS

BUILD A DISTINCTIVE BRAND WORLD

Building a Distinctive Brand World brings the brand to life and embody a particular look, feel and aesthetic

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SLIDE 104 DISTINCTIVNESS

BUILD A DISTINCTIVE BRAND WORLD

Building a Distinctive Brand World brings the brand to life and embody a particular look, feel and aesthetic

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SLIDE 105 DISTINCTIVNESS

BUILD A DISTINCTIVE BRAND WORLD

Building a Distinctive Brand World brings the brand to life and embody a particular look, feel and aesthetic

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SLIDE 106 DISTINCTIVNESS

BUILD A DISTINCTIVE BRAND WORLD

Building a Distinctive Brand World brings the brand to life and embody a particular look, feel and aesthetic

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EIGHT WAYS OF BUILDING NEW DISTINCTIVE BRAND ASSETS

WAYS INTO DISTINCTIVENESS USE OR CREATE A CHARACTER BUILD A DISTINCTIVE BRAND WORLD CONSISTENT AD FRAMEWORK STICKY JINGLES, CATCH PHRASES AND TAGLINES OWN A SPECIFIC MUSE PRODUCT OR SERVICE STUNTS DONE IN A CONSISTENT TONE OWN A CAUSE
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BUT To build a distinctive brand, you need a structure that supports it

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10 STRUCTURAL CHALLENGES THAT KILL BRAND DISTINCTIVENESS

DISTINCTIVENESS STRUCTURAL CHALLENGES

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STRUCTURAL CHALLENGE: MISALIGNMENT OF THE ADVERTISING OBJECTIVES & A MISUNDERSTANDING OF THE BRAND

STRUCTURAL CHALLENGES “DISSECTING THE FROG”

The GM wants a campaign that’s just about price. The CMO wants an emotional campaign The Advertising Manager wants something Distinctive At the agency, we can’t win

“ ”

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STRUCTURAL CHALLENGE: MORE THAN 2 CREATIVE CHEFS IN THE KITCHEN

MARISA, CBO + BRETT-Creative Director, DEUTSCH KEVIN, PRESIDENT/Ex-CMO KFC US + KARL, Creative Director WEIDEN + KENNEDY NY

STRUCTURAL CHALLENGES “DISSECTING THE FROG”
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STRUCTURAL CHALLENGE: BEING TOO RISK AVERSE

STRUCTURAL CHALLENGES “DISSECTING THE FROG”
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"Budweiser has been declining for a long time"

  • Eric Shepard, Industry Analyst

4.6% US RETAIL SALES 2017

(SOURCE: USATODAY 2018)
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14M

Barrels sold in 2016

50M

Barrels sold in 1988

(SOURCE: BLOOMBERG 2017 : USA Today 2017)
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BRAND LESSON #3 THE INDISTINCT ONES DIED

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R E D

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❑ RELEVANT TO MY LIFE ❑ RELEVANT TO MODERN CULTURE ❑ EASY TO AFFORD ❑ EASY TO ORDER ❑ EASY TO GET ASSETS / CAMPAIGNS THAT ARE: ❑ UNIQUE ❑ OWNABLE ❑ CONSISTENT

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CULTURE: WEALTH = POWER. CULTURE: WEALTH = YOUTH / FITNESS / SEXY.

R.E.D?

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PIZZA HUT CANADA: QUALITY INNOVATIONS DOMINOS CANADA: DELIVERY

R.E.D?

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ARBYS 2012: “REAL” MEAT, FRESH AT VALUE ARBY’S 2015 IDENTICAL, BREAKTHROUGH ADS

R.E.D?

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❑ RELEVANT TO MY LIFE ❑ RELEVANT TO MODERN CULTURE ❑ EASY TO AFFORD ❑ EASY TO ORDER ❑ EASY TO GET ASSETS / CAMPAIGNS THAT ARE: ❑ UNIQUE ❑ OWNABLE ❑ CONSISTENT