how to build a marketing plan 2015

91
ADVANCED MASTER IN INNOVATION AND MANAGEMENT - STRATEGIC MARKETING- © Prof. L. Bouty 2015 1 STRATEGIC MARKETING Advance Master in Innovation and Management Professor Laurent Bouty Brussels, 2015 © JEN COLLINS @ Flickr v1.1 This document is work in progress and I am waiting to improve it based on your feedbacks

Upload: laurent-bouty

Post on 23-Jan-2017

3.021 views

Category:

Business


1 download

TRANSCRIPT

Page 1: How to build a marketing plan 2015

ADVANCED MASTER IN INNOVATION AND MANAGEMENT - STRATEGIC MARKETING- © Prof. L. Bouty 2015 1

STRATEGIC MARKETING

Advance Master in Innovation and Management

Professor Laurent Bouty

Brussels, 2015

© JEN COLLINS @ Flickr

v1.1This document is work in progress and I am waiting to improve it based on your feedbacks

Page 2: How to build a marketing plan 2015

LAURENT BOUTY © 2015 2

WHOISBUILDINGTHEPLAN?

Page 3: How to build a marketing plan 2015

LAURENT BOUTY © 2015 3

CMOa strange specie today

Page 4: How to build a marketing plan 2015

LAURENT BOUTY © 2015 4

SOPHISTICATED STRATEGIST

ENTREPRENEURIAL TRAILBLAZER

VS.

Page 5: How to build a marketing plan 2015

LAURENT BOUTY © 2015 5

BUSINESS LEADER

MARKETING GURU

VS.

Page 6: How to build a marketing plan 2015

LAURENT BOUTY © 2015 6

SECTOR SPECIALIST

VERSATILE PARTNER

VS.

Page 7: How to build a marketing plan 2015

LAURENT BOUTY © 2015 7

INNOVATION CHAMPION

VS.

SHOPPER EXPERT

Page 8: How to build a marketing plan 2015

LAURENT BOUTY © 2015 8

DIGITAL EXPERT

VS.

MARKETING TRADITIONALIST

Page 9: How to build a marketing plan 2015

LAURENT BOUTY © 2015 9

MARKETING PLANNINGIS A COMBINATION OFART & SCIENCE

Page 10: How to build a marketing plan 2015

LAURENT BOUTY © 2015 10

Page 11: How to build a marketing plan 2015

LAURENT BOUTY © 2015 11

MARKETING PLANNING IS A DISCIPLINE

Page 12: How to build a marketing plan 2015

LAURENT BOUTY © 2015 12

Intended StrategyDeliberate StrategyUnrealized Strategy

Realized Strategy

Strategy is a plan: they are made in advance of the actions to which they apply and they are developed consciously and purposefully

Emer

gent

Stra

tegy

Source: Mintzberg H., The strategy concept I: Five Ps for Strategy, California Management Review 1987

Strategy is a pattern: the successful approaches merge into a pattern of action that becomes our strategy.

DIFFERENT APPROACHES FOR BUILDING A STRATEGY

Page 13: How to build a marketing plan 2015

LAURENT BOUTY © 2015 13

TODAY, WE ARE IN A VUCA WORLD

VUCA: Volatile, Uncertain, Complex and Ambiguous

Page 14: How to build a marketing plan 2015

LAURENT BOUTY © 2015 14

WEARE IN ANEW ERA

Page 15: How to build a marketing plan 2015

LAURENT BOUTY © 2015 15

STRATEGIC PROCESS HAS BEEN SIMPLIFIED

Page 16: How to build a marketing plan 2015

LAURENT BOUTY © 2015 16

DESIGN PROCESS IS NOW USED IN BUSINESS SCHOOL

Page 17: How to build a marketing plan 2015

LAURENT BOUTY © 2015 17

TODAY, WE SHOULD BE LEAN & AGILE

Page 18: How to build a marketing plan 2015

LAURENT BOUTY © 2015 18

WHY DO YOU NEED A PLAN?

Page 19: How to build a marketing plan 2015

ADVANCED MASTER IN INNOVATION AND MANAGEMENT - STRATEGIC MARKETING- © Prof. L. Bouty 2015

REMEMBER…

19

Page 20: How to build a marketing plan 2015

LAURENT BOUTY © 2015 20

Page 21: How to build a marketing plan 2015

LAURENT BOUTY © 2015 21

Money

MONEY!

Page 22: How to build a marketing plan 2015

LAURENT BOUTY © 2015 22

MARKETING IS A DEDICATED MIX OF ART AND SCIENCE BUT THE ULTIMATE FOCUS MUST ALWAYS BE THE BUSINESS

CMO.com (http://www.cmo.com/articles/2011/6/14/10-great-expectations-what-ceos-want-from-their-cmos.html)

Page 23: How to build a marketing plan 2015

LAURENT BOUTY © 2015 23

MAIN ASSUMPTION OF THE METHODOLOGY

THE MARKETING PLANNING EXERCISE SHOULD START FROM THE MAIN REASON WE DO IT:

DELIVERING THE FINANCIAL OBJECTIVES

THUS ALL ELEMENTS OF THIS STRATEGIC PROCESS SHOULD BE STRONGLY LINKED WITH THESE FINANCIAL OBJECTIVES.

Page 24: How to build a marketing plan 2015

LAURENT BOUTY © 2015 24

FINANCIAL OBJECTIVES

THE FINANCIAL OBJECTIVES ARE DETAILED IN THE P&L:

REVENUECOGSOPEXEBITDACAPEXFCF

Page 25: How to build a marketing plan 2015

LAURENT BOUTY © 2015 25

THE PROCESSSTEP 1 - START FROM COMPANY FINANCIAL OBJECTIVES

TOPICS ACTIONS

Group/Company objectives(Constraints)

Revenue, Gross Margin, OPEX (People, Marketing budget, …), EBITDA, CAPEX, FCF

Current Situation(The Game)

WHO (Brand)WHAT (Value Proposition + Price)WHERE (Channels)HOW (Cx, Conversations, Advocacy)FOR (Financial Equation)

Find Growth(Investigation)

What are the Brakes and Accelerators for growing users, transactions and/or Prices?

Define Options(Scenarios)

Option 1 - Generate Growth with the current situationContinue As-Is

Option 2 - Generate Growth through improvement of current situation (improve the game)Improve VP, Price, Channels, Brand, Cx, Conversation

Option 3 - Generate Growth through extension of current situation (extend the game)Extend VP, Price, Channels, Brand, Cx, Conversation

Option 4 - Generate Growth through innovation (change the game)Innovate VP, Price, Channels, Brand, Cx, Conversation

Build RoadmapConsolidate actions identified in Options in a consistent roadmap:GET (New Revenue), KEEP (Existing Revenue), USE (New Transactions)

Page 26: How to build a marketing plan 2015

LAURENT BOUTY © 2015 26

THE PROCESSSTEP 1 - START FROM COMPANY FINANCIAL OBJECTIVES

When you build your Marketing Plan, You need to know what you are expected to deliver at the end.

Page 27: How to build a marketing plan 2015

LAURENT BOUTY © 2015 27

HOW TOPLAY THEGAME?

Page 28: How to build a marketing plan 2015

LAURENT BOUTY © 2015 28

How do you make the link between Company Objectives and Marketing Initiatives?

QUESTION

Page 29: How to build a marketing plan 2015

LAURENT BOUTY © 2015 29

PROFIT = PRICE - COST

SHAREHOLDER VALUE CREATION IS ABOUT THE FUNDAMENTAL EQUATION

Page 30: How to build a marketing plan 2015

LAURENT BOUTY © 2015 30

STEP 1 - CONSTRAINTS & OBJECTIVESUNDERSTAND WHERE YOU PLAY AND YOUR OBJECTIVES

PRICE - COST = Profit

SubstitutesThreat of entry Buyer power

--

Supplier powerRivalry

-

-+-

Page 31: How to build a marketing plan 2015

LAURENT BOUTY © 2015 31

Good Marketing Analysis ties the details of strategy to the financial implications

Source: Barwise, P., Marsh, P., & Wensley, R. (1989). Must finance and strategy clash. Harvard Business Review, (September-October), 85.

Page 32: How to build a marketing plan 2015

LAURENT BOUTY © 2015 32

YOU NEED

AN EQUATION!!

Page 33: How to build a marketing plan 2015

LAURENT BOUTY © 2015 33

!"# = %&'"!×)!*+'*,)-.+×/!-,"

AVG PRICE PER

TRANSACTION

# TRANSACTION PER YEAR PER

CUSTOMER

# CUSTOMERS

(or Users)

MY PROPOSAL

Page 34: How to build a marketing plan 2015

LAURENT BOUTY © 2015 34

MY PROPOSAL

Revenue Y0

U0,T0,P0

Users

Transactions

Price

Revenue Y1

U1,T1,P1Incremental revenue due to user increase∆UxT0xP0

Incremental revenue due to transaction increase

U0x∆TxP0

Incremental revenue due to price increaseU0xT0x∆P

Assumption: Second degree factors are considered not relevant

Page 35: How to build a marketing plan 2015

LAURENT BOUTY © 2015 35

SO

Page 36: How to build a marketing plan 2015

LAURENT BOUTY © 2015 36

Marketers are focused on being the

GROWTH engine for the firm

source: Forbes CEO/CMO dilemma

Page 37: How to build a marketing plan 2015

LAURENT BOUTY © 2015 37

MORE USERS

Page 38: How to build a marketing plan 2015

LAURENT BOUTY © 2015 38

USERS ARE IMPACTED BY DIFFERENT FACTORS

QUESTION TO ASK:

How is the evolution of our Customer Base?Flat, (Rapid) Growth, (Rapid) Decrease

How can we get more users?How can we loose less users?

Page 39: How to build a marketing plan 2015

LAURENT BOUTY © 2015 39

MORE TRANSACTIONS

Page 40: How to build a marketing plan 2015

LAURENT BOUTY © 2015 40

TRANSACTIONS ARE IMPACTED BY DIFFERENT FACTORS

UP-SELL

CROSS-SELL ELASTICITY

Page 41: How to build a marketing plan 2015

LAURENT BOUTY © 2015 41

HIGHER PRICES

Page 42: How to build a marketing plan 2015

LAURENT BOUTY © 2015 42

504 BRAND VALUATION

prudence. Its evaluations must be shown to bevalid, coherent and reproduceable. This iswhy, paradoxically, only the brands that havebeen bought individually, or that wereincluded in the price paid for a company, canbe posted in the balance sheet of the acquiringcompany. The overall price paid gives anupper limit to their value. So far, all over theworld, the principle of prudence has lednational and international accounting normsand standards to forbid the posting in thebalance sheet of internally grown brands. It isof course possible to propose brand valua-tions, but as long as the brands have not beenbought and sold, there is too much doubtabout the validity of these estimates. Brandsacquire value through the market.

Accounting for brands: the debate

The debate on the inclusion of all of thebrands, whether they be purchased orcreated, raises basic questions about the veryessence of accounting. Why do balancesheets and company accounts exist? Is it togive an estimation of the true financial value

of the company (which of course is verysubjective) or, following the accountingprudence principle, to include only objectivedata and to assess only past and recordedtransactions? Until now the second idea hasbeen chosen in all countries: therefore onlytransactions involving external brands arerecorded. If the internal brands were to benoted, the principle of reality would berespected at the expense of reliability and ofthe consistency of accounting. In fact, whatwould we think of a balance sheet which wasbased on non-uniform and sometimessubjective methods of evaluation? Theinclusion of an acquired brand does notviolate the principle of bookkeeping athistorical costs, which is a fundamentalaccounting principle. How then can internalbrands be valued? As we will see later on, thevaluation methods, which are based onhistorical costs or replacement costs, are notgood enough. The best methods are thosebased on projections of future income, whichare highly subjective. A certain amount ofuncertainty and heterogeneity, which areagainst the rules of caution, would be createdif these were included in the balance sheet.

Price

Without astrong brand

Volumepremium

Pricepremium

Volume

With astrong brand

Figure 18.1 What is ‘brand equity’?

PRICES ARE IMPACTED BY DIFFERENT FACTORS

OPTIONS

Be Honest, Thank you Customers, Explain Your Costs, Add Features, Give a Lower-Priced Option, Over-Delivered First, Add More Value, Raide Prices for Reasons Other Than Profitability, Explain But Don’t Apologise, Inform Your Customers

Page 43: How to build a marketing plan 2015

LAURENT BOUTY © 2015 43

BUT THE BUDGET IS NOT UNLIMITED!

Page 44: How to build a marketing plan 2015

LAURENT BOUTY © 2015 44

!"#$%& = ()*!+×$+&-*&.$#/-×0+#.!1 − ./3*1 − /0!4

SO!

MAXIMIZEMore Users, More Transaction, Higher (Margin on) Price

MINIMIZEAutomation, Purchasing power, Channel

efficiency, Acquisition cost, Retention cost

Page 45: How to build a marketing plan 2015

LAURENT BOUTY © 2015 45

HOW TOMAXIMIZETHEEQUATION?

Page 46: How to build a marketing plan 2015

LAURENT BOUTY © 2015 46

You (BRAND) ARE PROPOSING Something (VP)At a (PRICE)To Someone (PERSONA)

Page 47: How to build a marketing plan 2015

LAURENT BOUTY © 2015 47

You (BRAND) ARE INTERACTING Across (TOUCHPOINTS)And having (CONVERSATIONS)With Someone (PERSONA)

Page 48: How to build a marketing plan 2015

LAURENT BOUTY © 2015 48

YOU MARKETING

NEEDS FOUNDATION

BRAND VALUE PROPOSITION

PRICE

Page 49: How to build a marketing plan 2015

LAURENT BOUTY © 2015 49

YOU MARKETING

NEEDS INTERACTIONS

TOUCH-POINTS

CONVER-SATIONS

BRAND

Page 50: How to build a marketing plan 2015

LAURENT BOUTY © 2015 50

THE PROCESSSTEP 2 - WHAT IS THE CURRENT SITUATION?

TOPICS ACTIONS

Group/Company objectives(Constraints)

Revenue, Gross Margin, OPEX (People, Marketing budget, …), EBITDA, CAPEX, FCF

Current Situation(The Game)

WHO (Brand)WHAT (Value Proposition + Price)WHERE (Touchpoints)HOW (Cx, Conversations, Advocacy)FOR (Financial Equation)

Find Growth(Investigation)

What are the Brakes and Accelerators for growing users, transactions and/or Prices?

Define Options(Scenarios)

Option 1 - Generate Growth with the current situationContinue As-Is

Option 2 - Generate Growth through improvement of current situation (improve the game)Improve VP, Price, Channels, Brand, Cx, Conversation

Option 3 - Generate Growth through extension of current situation (extend the game)Extend VP, Price, Channels, Brand, Cx, Conversation

Option 4 - Generate Growth through innovation (change the game)Innovate VP, Price, Channels, Brand, Cx, Conversation

Build RoadmapConsolidate actions identified in Options in a consistent roadmap:GET (New Revenue), KEEP (Existing Revenue), USE (New Transactions)

Page 51: How to build a marketing plan 2015

LAURENT BOUTY © 2015 51

SO THEGAMEIS ?

Page 52: How to build a marketing plan 2015

LAURENT BOUTY © 2015 52

WHO (Brand)WHAT(Value Proposition + Prices)WHERE(Touchpoints)HOW(Cx, Conversations, Advocacy)FOR (Financial Equation)

Page 53: How to build a marketing plan 2015

LAURENT BOUTY © 2015 53

BRAND

TOUCH-POINTS

DESIGN

PAID

EARNED

OWNED

SHARED

PRODUCTS & SERVICES

GAIN CREATORS

FOUNDATIONSINTERACTIONS

DESIGN

CONVER-SATIONS

VALUE PROPOSITION

PRICES

PAIN RELIEVERS

PRICING MECHANISMS

COST STRUCTURES

MOMENT OF TRUTH

OMNICHANNEL

MICRO-MOMENTS

EXPERIENCES

PERSONAS

GROWTH HACKING

RETENTION

REVENUESOPEX, CAPEX

Page 54: How to build a marketing plan 2015

LAURENT BOUTY © 2015 54

YOU NEEDSOMEMODELS

Page 55: How to build a marketing plan 2015

LAURENT BOUTY © 2015 55

YOU MARKETING

NEEDS FOUNDATION

BRAND VALUE PROPOSITION

PRICE

Page 56: How to build a marketing plan 2015

LAURENT BOUTY © 2015 56

Page 57: How to build a marketing plan 2015

LAURENT BOUTY © 2015 57

“New exciting ideas and perspectives on brand building are offered that have been absent from our literature.”Philip Kotler, S C Johnson & Sons Distinguished Professor of International Marketing, Northwestern University,

Kellogg School of Management, USA

“Kapferer continues to be on the leading edge.”Earl N Powell, President, Design Management Institute, Boston, USA

“Managing a brand without reading this book is like driving a car without your license.” Haesun Lee, Senior Vice President of Marketing,AMOREPACIFIC Co, Korea

“The best book on brands!”Design Magazine

“One of the definitive resources on branding for marketing professionals worldwide.”The Economic Times, India

“One of the best books on brand management. Kapferer is thought-provoking and always able to create new insights on various brand-related topics.”

Rik Riezebos, CEO Brand Capital and director of the European Institute for Brand Management

Adopted by leading international business schools, MBA programmes and marketing practitioners alike, The New StrategicBrand Management is simply the reference source for senior strategists, positioning professionals and postgraduate students. Over the years it has not only established a reputation as one of the leading works on brand strategy but hasalso become synonymous with the topic itself.

This new edition builds on its impressive reputation and keeps the book at the forefront of strategic brand thinking.Revealing and explaining the latest models used by companies worldwide, author Jean-Noël Kapferer covers all the leading issues faced by brand strategists today, supported by an array of international case studies. With both gravitasand intelligent insight, this book reveals new thinking on crucial topics including:

Moving beyond marketing, The New Strategic Brand Management addresses the bigger picture, integrating other components such as business models, HR and finance into brand building. It analyses the specifics of brands in B2B, services, distribution, the internet and the luxury sector. It extends the brand concept to celebrities, universities, townsand nations.

Jean-Noël Kapferer is one of the very few worldwide experts on brands. His book stands out fromothers with its unique insights, its style of exhaustive analysis and its original perspectives, stemming fromhis strategic vision, and his international background and experience. A professor of marketing strategy atHEC Paris, he holds a PhD from Northwestern University (USA) and is an active consultant to manyEuropean, US and Asian corporations. He also gives executive seminars in the US, China, Japan, Korea and

India. He is the author of six books on branding, advertising and communication, including Reinventing the Brand, also published by Kogan Page. You can contact him at www.kapferer.com.

• growth in saturated markets;• decommoditisation;• innovation in emerging markets;• brand rejuvenation and turn around;• managing brand consistency and diversity;

• positioning private labels and store brands;• globalisation and market adaptation;• co-branding strategies;• internal branding and corporate branding; • financial evaluation of brands.

Kogan Page120 Pentonville RoadLondon N1 9JNUnited Kingdomwww.kogan-page.co.uk

Kogan Page US525 South 4th Street, #241Philadelphia PA 19147USA

£35.00US $70.00

Branding / Business and management

THE NEWSTRATEGICBRANDMANAGEMENT

Creating and sustaining brand equity long term

“New exciting ideas and perspectives on brand building!”Philip Kotler

J N KAPFERER

KA

PF

ER

ER

TH

E N

EW

ST

RA

TE

GIC

B

RA

ND

MA

NA

GE

ME

NT

4TH EDITION

4TH EDITION

ISBN: 978-0-7494-5085-4

new_strategic_brand_aw:Layout 1 6/12/07 16:25 Page 1

Page 58: How to build a marketing plan 2015

LAURENT BOUTY © 2015 58

Page 59: How to build a marketing plan 2015

LAURENT BOUTY © 2015 59

PERSONAS, VP, BRAND AND PRICING

BRAND VP

The Value Proposition Canvas

Customer (Segment) Profile:

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com

Pains

Gains

CustomerJob(s)

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com

The Value Proposition Canvas

Gain Creators

Pain Relievers

Products& Services

Value (Proposition) Map:

appearance is important but it is not all.Nevertheless, the first step in developing abrand is to define its physical aspect: Whatis it concretely? What does it do? Whatdoes it look like? The physical facet alsocomprises the brand’s prototype: theflagship product that is representative ofthe brand’s qualities.

That is why the small round bottle is soimportant each time Orangina islaunched in a new country. The bottleused today is the same as it has alwaysbeen. From the beginning, it has served toposition Orangina, thanks to its uniqueshape and to the orange pulp that we canactually see. Only later was it marketed instandard family-size PET bottles and incans. In this respect, it is also quite signif-icant that there used to be a picture of thefamous Coca-Cola bottle on all Coke cans.It is true that modern packaging tends tostandardise brands, making them allclones of one another. Thus, in using theimage of its traditional bottle, Coca-Colaaims to remind us of its roots.

There are several delicate issuesregarding Coke’s physical facet. Forexample, is the dark colour part of itsidentity? It is certainly a key contributorto the mystery of the brand. If it belongsto the brand’s kernel, key identity traits,then there could never be any such thingas colourless Crystal Coke, even thoughthere is such a thing as Crystal Pepsi.Likewise, would grapefruit Orangina inthe classic round bottle be possible?

Many brands have problems with theirphysical facet because their functionaladded value is weak. Even an image-basedbrand must deliver material benefits.Brands are two-legged value-addingsystems.

2. A brand has a personality. By communi-cating, it gradually builds up character.The way in which it speaks of its productsor services shows what kind of person itwould be if it were human.

‘Brand personality’ has been the mainfocus of brand advertising since 1970.

BRAND IDENTITY AND POSIT IONING 183

PICTURE OF SENDER

PICTURE OF RECIPIENT

Relationship Culture

Reflection

Physique Personality

Self-image

EXTE

RNAL

ISAT

ION

INTE

RNAL

ISAT

ION

Figure 7.4 Brand identity prism

FIT

PERSONASFOUNDATIONS

Page 60: How to build a marketing plan 2015

LAURENT BOUTY © 2015 60

YOU MARKETING

NEEDS INTERACTIONS

TOUCH-POINTS

CONVER-SATIONS

BRAND

Page 61: How to build a marketing plan 2015

LAURENT BOUTY © 2015 61

CHANNELS BECOME EXPERIENCES (CX)COMMUNICATION BECOMES CONVERSATION (POSE)

POE stands for Paid, Owned and Earned

ExperiencingPre-Arrival Post-Check Out

PLANNING BOOKING TRAVELING CHECK IN DINING GAMING SHOPPING ENTERTAINMENT RELAXING IN ROOM CHECK OUT TRAVELING SHARING PLANNING

EXCITEMENT

SURPRISE

EMPOWERED

OVERWHELMING

FRUSTRATION

INTENSITY

Page 62: How to build a marketing plan 2015

LAURENT BOUTY © 2015 62

Touch points

The Value Proposition Canvas

Customer (Segment) Profile:

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com

Pains

Gains

CustomerJob(s)

Brand Experience

Channels

Conversations

Pains, Gains, Jobs Alternatives (Competition, Substitution)

Brand Proposition (Externalisation, Internalisation)Service Level Agreement vs CompetitionDoing, Thinking, Feeling

On-line, Off-lineStatic, MobileDirect & IndirectHuman, Automated

Paid, Owned, Earned, SharedStoriesVon Restorff effectAdvocacies

Page 63: How to build a marketing plan 2015

LAURENT BOUTY © 2015 63

@iacquire

The New Consumer Decision Journey

via Google ZMOT 2012

Page 64: How to build a marketing plan 2015

LAURENT BOUTY © 2015 64

Page 65: How to build a marketing plan 2015

LAURENT BOUTY © 2015 65

[email protected]

60

Page 66: How to build a marketing plan 2015

LAURENT BOUTY © 2015 66

Page 67: How to build a marketing plan 2015

LAURENT BOUTY © 2015 67

Page 68: How to build a marketing plan 2015

LAURENT BOUTY © 2015 68

Page 69: How to build a marketing plan 2015

LAURENT BOUTY © 2015 69

QUESTION Can I deliver growth with the current situation?

Page 70: How to build a marketing plan 2015

LAURENT BOUTY © 2015 70

STEP 3 - INVESTIGATIONUNDERSTAND CONTRIBUTION OF EACH ELEMENTS

REV USER TRANSACTION REV/TRANS.

BRAND

VP

PRICE

CHANNELS

CONVERSATION

FOUNDATIONS

INTERACTIONS

{{

Accelerators

Brakes

Page 71: How to build a marketing plan 2015

LAURENT BOUTY © 2015 71

STEP 3 - SCENARIOS FOUNDATIONSWHAT SHOULD BE CHANGED IN THE FOUNDATIONS?

BRAND VP

The Value Proposition Canvas

Customer (Segment) Profile:

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com

Pains

Gains

CustomerJob(s)

copyright: Strategyzer AGThe makers of Business Model Generation and Strategyzer strategyzer.com

The Value Proposition Canvas

Gain Creators

Pain Relievers

Products& Services

Value (Proposition) Map:

appearance is important but it is not all.Nevertheless, the first step in developing abrand is to define its physical aspect: Whatis it concretely? What does it do? Whatdoes it look like? The physical facet alsocomprises the brand’s prototype: theflagship product that is representative ofthe brand’s qualities.

That is why the small round bottle is soimportant each time Orangina islaunched in a new country. The bottleused today is the same as it has alwaysbeen. From the beginning, it has served toposition Orangina, thanks to its uniqueshape and to the orange pulp that we canactually see. Only later was it marketed instandard family-size PET bottles and incans. In this respect, it is also quite signif-icant that there used to be a picture of thefamous Coca-Cola bottle on all Coke cans.It is true that modern packaging tends tostandardise brands, making them allclones of one another. Thus, in using theimage of its traditional bottle, Coca-Colaaims to remind us of its roots.

There are several delicate issuesregarding Coke’s physical facet. Forexample, is the dark colour part of itsidentity? It is certainly a key contributorto the mystery of the brand. If it belongsto the brand’s kernel, key identity traits,then there could never be any such thingas colourless Crystal Coke, even thoughthere is such a thing as Crystal Pepsi.Likewise, would grapefruit Orangina inthe classic round bottle be possible?

Many brands have problems with theirphysical facet because their functionaladded value is weak. Even an image-basedbrand must deliver material benefits.Brands are two-legged value-addingsystems.

2. A brand has a personality. By communi-cating, it gradually builds up character.The way in which it speaks of its productsor services shows what kind of person itwould be if it were human.

‘Brand personality’ has been the mainfocus of brand advertising since 1970.

BRAND IDENTITY AND POSIT IONING 183

PICTURE OF SENDER

PICTURE OF RECIPIENT

Relationship Culture

Reflection

Physique Personality

Self-image

EXTE

RNAL

ISAT

ION

INTE

RNAL

ISAT

ION

Figure 7.4 Brand identity prism

1. OBSERVATION OF PERSONAS2. FIT BETWEEN PERSONAS AND

FOUNDATIONS3. CONSISTENCY BETWEEN ELEMENTS4. SIMPLICITY (Ockham’s razor)5. MAXIMIZATION OF FINANCIAL

EQUATION (U,T, P)

FIT

PERSONASFOUNDATIONS

External environment is a constraint

Page 72: How to build a marketing plan 2015

LAURENT BOUTY © 2015 72

STEP 4 - SCENARIOS AMPLIFICATIONSWHAT SHOULD BE CHANGED IN THE INTERACTIONS?

McKinsey Quarterly 2009 Number 32

An interactive exhibit explores the new consumer decision journey model and describes how marketers can use it to communicate with consumers at key stages in the decision-making process. Find the exhibit on mckinseyquarterly.com.

and more complicated than the funnel suggests. We call this approach the consumer decision journey. Our thinking is applicable to any geographic market that has different kinds of media, Internet access, and wide product choice, including big cities in emerging markets such as China and India.

We developed this approach by examining the purchase decisions of almost 20,000 consumers across five industries and three continents. Our research showed that the proliferation of media and products requires marketers to find new ways to get their brands included in the initial-consideration set that consumers develop as they begin their decision journey. We also found that because of the shift away from one-way communication—from marketers to consumers—toward a two-way conversation, marketers need a more systematic way to satisfy customer demands and manage word-of-mouth. In addition, the research identified two different types of customer loyalty, challenging companies to reinvigorate their loyalty programs and the way they manage the customer experience.

Finally, the research reinforced our belief in the importance not only of aligning all elements of marketing—strategy, spending, channel man- agement, and message—with the journey that con- sumers undertake when they make purchasing decisions but also of integrating those elements across the organization. When marketers under- stand this journey and direct their spending and messaging to the moments of maximum influence, they stand a much greater chance of reaching consumers in the right place at the right time with the right message.

Q3 2009CDJExhibit 1 of 4Glance: In the traditional funnel metaphor, consumers start with a set of potential brands and methodically reduce that number to make a purchase.Exhibit title: The traditional funnel

Awareness Familiarity Consideration Purchase Loyalty

Exhibit 1

The traditional funnel

ExperiencingPre-Arrival Post-Check Out

PLANNING BOOKING TRAVELING CHECK IN DINING GAMING SHOPPING ENTERTAINMENT RELAXING IN ROOM CHECK OUT TRAVELING SHARING PLANNING

EXCITEMENT

SURPRISE

EMPOWERED

OVERWHELMING

FRUSTRATION

INTENSITY

1. JOURNEY MAPPING2. YOUR BRAND SLA AT EACH

TOUCHPOINT3. CHANNEL EXECUTION AT EACH

TOUCHPOINT4. CONVERSATIONS AT EACH

TOUCHPOINTS5. OMNI-CHANNEL (ALIGNMENT)6. CONVERSION BETWEEN

CHANNELS

Page 73: How to build a marketing plan 2015

LAURENT BOUTY © 2015 73

THE PROCESSSTEP 3 - INVESTIGATION

TOPICS ACTIONS

Group/Company objectives(Constraints)

Revenue, Gross Margin, OPEX (People, Marketing budget, …), EBITDA, CAPEX, FCF

Current Situation(The Game)

WHO (Brand)WHAT (Value Proposition + Price)WHERE (Touchpoints)HOW (Cx, Conversations, Advocacy)FOR (Financial Equation)

Find Growth(Investigation)

What are the Brakes and Accelerators for growing users, transactions and/or Prices?

Define Options(Scenarios)

Option 1 - Generate Growth with the current situationContinue As-Is

Option 2 - Generate Growth through improvement of current situation (improve the game)Improve VP, Price, Channels, Brand, Cx, Conversation

Option 3 - Generate Growth through extension of current situation (extend the game)Extend VP, Price, Channels, Brand, Cx, Conversation

Option 4 - Generate Growth through innovation (change the game)Innovate VP, Price, Channels, Brand, Cx, Conversation

Build RoadmapConsolidate actions identified in Options in a consistent roadmap:GET (New Revenue), KEEP (Existing Revenue), USE (New Transactions)

Page 74: How to build a marketing plan 2015

LAURENT BOUTY © 2015 74

4 OPTIONS As IsImproveExtendInnovate

Page 75: How to build a marketing plan 2015

LAURENT BOUTY © 2015 75

STEP 3 - OPTIONSFIND GROWTH

REV AS IS IMPROVE EXTEND INNOVATE

BRAND Reach Objectives

with current game

Reach Objectives

by improving

current game

Reach Objectives

by extending

current game

Reach Objectives

by changing the game

VP

PRICE

CHANNELS

CONVERSATION

Page 76: How to build a marketing plan 2015

LAURENT BOUTY © 2015

IMPROVEMENT EXTENSION INNOVATION

76

EXAMPLE

Page 77: How to build a marketing plan 2015

LAURENT BOUTY © 2015

IMPROVEMENT EXTENSION INNOVATION

77

EXAMPLE

Page 78: How to build a marketing plan 2015

LAURENT BOUTY © 2015 78

THE PROCESSSTEP 4 - OPTIONS

TOPICS ACTIONS

Group/Company objectives(Constraints)

Revenue, Gross Margin, OPEX (People, Marketing budget, …), EBITDA, CAPEX, FCF

Current Situation(The Game)

WHO (Brand)WHAT (Value Proposition + Price)WHERE (Touchpoints)HOW (Cx, Conversations, Advocacy)FOR (Financial Equation)

Find Growth(Investigation)

What are the Brakes and Accelerators for growing users, transactions and/or Prices?

Define Options(Scenarios)

Option 1 - Generate Growth with the current situationContinue As-Is

Option 2 - Generate Growth through improvement of current situation (improve the game)Improve VP, Price, Channels, Brand, Cx, Conversation

Option 3 - Generate Growth through extension of current situation (extend the game)Extend VP, Price, Channels, Brand, Cx, Conversation

Option 4 - Generate Growth through innovation (change the game)Innovate VP, Price, Channels, Brand, Cx, Conversation

Build RoadmapConsolidate actions identified in Options in a consistent roadmap:GET (New Revenue), KEEP (Existing Revenue), USE (New Transactions)

Page 79: How to build a marketing plan 2015

LAURENT BOUTY © 2015 79

BUILDa plan with your actions

Page 80: How to build a marketing plan 2015

LAURENT BOUTY © 2015

Strategies TargetsBusiness Measures Initiatives

Continue Strong Growth Increase Sales

500 million by 2008

• Conduct on-line training for every rep (Q1)

• Change compensation System (Q3)

Description of your strategic

choice

How this will be

measured and tracked

Expected performance / Improvement

Level

What We Will Do to Achieve This

Performance / Improvement Level

80

STEP 5 - ROADMAPDEFINE YOUR ROADMAP AND BUDGET

Page 81: How to build a marketing plan 2015

LAURENT BOUTY © 2015

Strategies TargetsBusiness Measures

Continue Strong Growth

Increase Sales

Report Annualised Profits

Gain Market share

500 million by 2012

50 million by 2012

33% of Our Market Segment by End of 2012

81

STEP 5 - ROADMAPDEFINE YOUR ROADMAP AND BUDGET

Page 82: How to build a marketing plan 2015

LAURENT BOUTY © 2015 82

THE PROCESSSTEP 5 - ROADMAP

TOPICS ACTIONS

Group/Company objectives(Constraints)

Revenue, Gross Margin, OPEX (People, Marketing budget, …), EBITDA, CAPEX, FCF

Current Situation(The Game)

WHO (Brand)WHAT (Value Proposition + Price)WHERE (Touchpoints)HOW (Cx, Conversations, Advocacy)FOR (Financial Equation)

Find Growth(Investigation)

What are the Brakes and Accelerators for growing users, transactions and/or Prices?

Define Options(Scenarios)

Option 1 - Generate Growth with the current situationContinue As-Is

Option 2 - Generate Growth through improvement of current situation (improve the game)Improve VP, Price, Channels, Brand, Cx, Conversation

Option 3 - Generate Growth through extension of current situation (extend the game)Extend VP, Price, Channels, Brand, Cx, Conversation

Option 4 - Generate Growth through innovation (change the game)Innovate VP, Price, Channels, Brand, Cx, Conversation

Build RoadmapConsolidate actions identified in Options in a consistent roadmap:GET (New Revenue), KEEP (Existing Revenue), USE (New Transactions)

Page 83: How to build a marketing plan 2015

LAURENT BOUTY © 2015 83

DIGITALis not a strategy!

Page 84: How to build a marketing plan 2015

LAURENT BOUTY © 2015 84

DIGITAL FOR BUSINESS IS LIKE WATER FOR FISH!YOU CAN’T SURVIVE WITHOUT IT

Page 85: How to build a marketing plan 2015

LAURENT BOUTY © 2015 85

THE PROCESS

Page 86: How to build a marketing plan 2015

LAURENT BOUTY © 2015 86

BRAND

TOUCH-POINTS

DESIGN

PAID

EARNED

OWNED

SHARED

PRODUCTS & SERVICES

GAIN CREATORS

FOUNDATIONSINTERACTIONS

DESIGN

CONVER-SATIONS

VALUE PROPOSITION

PRICES

PAIN RELIEVERS

PRICING MECHANISMS

COST STRUCTURES

MOMENT OF TRUTH

OMNICHANNEL

MICRO-MOMENTS

EXPERIENCES

PERSONAS

GROWTH HACKING

RETENTION

REVENUESOPEX, CAPEX

Page 87: How to build a marketing plan 2015

LAURENT BOUTY © 2015 87

THE PROCESS

TOPICS ACTIONS

Group/Company objectives(Constraints)

Revenue, Gross Margin, OPEX (People, Marketing budget, …), EBITDA, CAPEX, FCFBrand equity

Current Situation(The Game)

WHO (Brand)WHAT (Value Proposition + Price)WHERE (Channels)HOW (Cx, Conversations, Advocacy)FOR (Financial Equation)

Find Growth(Investigation)

What are the Brakes and Accelerators for growing users, transactions and/or Prices?

Define Options(Scenarios)

Option 1 - Generate Growth with the current situationContinue As-Is

Option 2 - Generate Growth through improvement of current situation (improve the game)Improve VP, Price, Channels, Brand, Cx, Conversation

Option 3 - Generate Growth through extension of current situation (extend the game)Extend VP, Price, Channels, Brand, Cx, Conversation

Option 4 - Generate Growth through innovation (change the game)Innovate VP, Price, Channels, Brand, Cx, Conversation

Build RoadmapConsolidate actions identified in Options in a consistent roadmap:GET (New Revenue), KEEP (Existing Revenue), USE (New Transactions)

Page 88: How to build a marketing plan 2015

LAURENT BOUTY © 2015 88

AND DON’T FORGET!

Page 89: How to build a marketing plan 2015

LAURENT BOUTY © 2015 89

DO THE BASICS,RIGHT

Page 90: How to build a marketing plan 2015

LAURENT BOUTY © 2015 90

Marketing is my passion. I am Academic Director at Solvay Brussels Schools in Belgium where I teach Strategy and Marketing.

I am a CMO veteran. I have managed large teams and budgets in real life (not only academic) where I learned the hard way!

I am interested in your views to make this approach better.

Join me on:

Twitter @lboutyFacebook: Laurent BoutyEmail: [email protected]: www.bouty.net

Page 91: How to build a marketing plan 2015

LAURENT BOUTY © 2015 91