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Page 1: Lovemarks Book
Page 2: Lovemarks Book

CHAPTER ONE: START ME UPHere’s what I learned from five great businesses I’ve workedfor: • Always surround yourself with Inspirational Players • Zig when others zag • Get out of the office and into thestreet • Live on the edge • Nothing is impossible.

CHAPTER TWO: TIME CHANGES EVERYTHINGThe journey from products to trademarks, from trademarksto brands. A quick look at why brands are running out of juice as they confront the Attention Economy.

CHAPTER THREE: E M OTIONAL RESCUEWhy I believe emotional connections can transform brands. If you spend your days re v i ewing data, read eve ry word of thisc h a p t e r. Twice. INSIGHTS: Maurice Levy, Publicis Gro u p e

CHAPTER FOUR: ALL YOU NEED IS LOVETaking brands to the next level depends on one four-letterword: L-O-V-E. I N S I G H TS: Sean Fitzpatrick, sportsman; Tim Sa n d e r s, Ya h o o !

CHAPTER FIVE: GIMME SOME RESPECTLove will change the way we do business but only if itis built on Respect. No Respect, no Love. Simple. Let’scelebrate what respect has achieved.

CHAPTER SIX: LOVE IS IN THE AIROkay, so how do you create loyalty beyond reason?INSIGHTS: Alan Webber, Fast Company magazine

CHAPTER SEVEN: B E AUTIFUL OBSESSIONSo what are Lovemarks? They inspire loyalty beyond reasonthrough their obsession with Mystery, Sensuality, andIntimacy to create a premium. Here are our first ideas aboutputting them into action. INSIGHTS: Jim Stengel, Procter& Gamble

CHAPTER EIGHT: ALL I HAVE TO DO IS DREAMUnderstand how Mystery can transform relationships withconsumers. Great stories, mythic characters, the past, present, and future together, dreams and inspiration. Beinspired by the ideas and actions of great Mystery makers.I N S I G H TS: Dan St o r p e r, Pu t u m a yo World Music; CeciliaDean, Vi s i o n a i re m a g a z i n e ; Maurice Levy, Publicis Groupe;Sean Landers, artist

CHAPTER NINE: THE HUMAN TOUCHThe five senses–sight, hearing, smell, touch, taste–makeL ove m a rks real in the world. Leading sensualists show h ow they move us. INSIGHTS: Dan St o r p e r, Pu t u m a yoWorld Music; Masao Inoue, Toyota; Alan We b b e r, Fast Company m a g a z i n e

CHAPTER TEN: CLOSE TO YOUIntimacy is the challenge of our time. Intimacy demandstime and genuine feeling, both in ve ry short supply. Se eh ow businesses deep into intimacy can create empathy, commitment, and passion. INSIGHTS: Sean Fi t z p a t r i c k ,s p o rt s m a n; C l a re Hamill, Nike Goddess

CHAPTER ELEVEN: AC ROSS THE BORDERThe L ove / Respect Axis is your first step. By plottingw h e re you are today, you can trace where you need to go. Using the Love / Respect Axis, Kodak shows how they reinvigorated themselves with the youth mark e t .I N S I G H TS: Eric Lent, Ko d a k

CHAPTER TW E LV E : I CAN SEE CLEARLY NOWThe reinvention of research. Xploring, power listening, andpowerful new proof that Lovemarks are what matter most to customers. INSIGHTS: Malcolm Gladwell, writer; PeterCooper, QualiQuant International; Jim Stengel, Procter & Gamble; Clare Hamill, Nike Goddess

CHAPTER THIRTEEN: I’LL FOLLOW THE SUNAn Inspirational Consumer is precious beyond measure.Saatchi & Saatchi people share their most inspiring consumer stories. Tell me yours at www.lovemarks.comI N S I G H TS: Tim Sa n d e r s, Ya h o o !; Malcolm Gl a d we l l, w r i t e r

CHAPTER FOURTEEN: ROLLING THUNDERLovemarks in action. Real life client stories from Olay, Tide,Lexus, Cheerios, and Brahma beer showing the power ofMystery, Sensuality, and Intimacy.

CHAPTER FIFTEEN: WHAT THE WORLD NEEDS NOWThe role of business is to make the world a better place fore ve ryone. Becoming a Love m a rk has to be the destination ofe ve ry business. Step up to the challenge. INSIGHTS: Dr. ArnoPe n z i a s, Nobel Pr i ze winner; Jim St e n g e l, Procter & Ga m b l e;Sandra Da w s o n, Cambridge Un i ve r s i t y

F U RTHER READING

INDEX

C o n t e n t s

Page 3: Lovemarks Book

I was born an optimist.

I always looked for opportunities where others facedup to threats or weaknesses. I believed if you weregoing through hell, the only option was to keep going!During my childhood in Lancaster I always believed that nothing was impossible. Where better to findmyself than as CEO Worldwide of Saatchi & Saatchi, the Ideas Company that made this belief a founding declaration.

I’ve been lucky to have been guided by exceptional people who have mentored me. InspirationalPlayers. People who believe that to dream is as important as to act, and that winners are powered bypassion and emotion.

By the time I was ready to enter the world of work I wanted to go somewhere that was top of itsclass. Somewhere that relied on passion and inspiration as its driving force. Who better to work forthan the most inspirational businesswoman of the sixties, Mary Quant?

Page 4: Lovemarks Book

Products to trademarksIn the beginning products we re just, we l l …p ro ducts. One was pretty much indistinguishablefrom another. Get hit over the head with Jake’sclub or Fred’s club, the headache was much thesame. Trade was kept in the family. Making theright choice was easy.

But people being people, even in such a simpletrading system, trademarks made an early entry.T h e re are trademarks on pottery in Me s o p o t a m i a( n ow Iraq) dating as far back as 3000 B.C.

There is a cafe I go to named SPQR. It is namedafter one of the most feared and respected trade-

m a rks the world hase ver known. Four letters that told you the mighty Ro m a nEm p i re was at hand.

Over the centuries, trade increasingly stretchedpast local boundaries and the importance of trade-marks increased. It’s fine to trust the local villageblacksmith. You could check out the forge, bitethe metal, ask around. But the weird guy bringingin iron implements from the next village? Not soe a s y. So trademarks moved up a notch from s i mple name tags to marks of trust and reliability.

From a business perspective, trademarks play gre a tdefense. They offer legal protection to the uniquequalities of your products and services, and declareyour interests. Tr a d e m a rks define territory.

T h a t’s how it works when you are in charge of a business.

To consumers, the picturelooks somewhat different.They care about a trademark because it offers reassurance. ‘With this, I’ll get the quality I paid for.’

For both businesses and consumers, trademark sa re a sign of continuity in a constantly shiftinge n v i ronment.

As Kate Wilson, a prominent New Zealand patentattorney once told me:

‘Patents expire, copyrights eventually run their course,but trademarks last forever. ’Trademarks are not exempt from change. SPQRgets thousands of hits on Google, but most ofthem are not for the Senate and People of Romebut for a popular computer game–SPQR: TheEmpire’s Darkest Hour!

The history of trademarks is littered with once-famous names that have gone generic. Bad newsfor them, as all the value they have created withconsumers can be sucked up by just about anyone.Band-Aids, once a trademarked name, is nowthe generic term for any bandage that sticks over a small wound. Je l l - O and Va s e l i n e h a ve beenpushed down the same route. And the process is still happening. In some countries, unique product names like Rollerblades and Walkmanhave recently been accepted as the given anddefining names for in-line skates and port a b l emusic players. Promotion to dictionary status is no promotion at all.

Just holding a trademark doesn’t guarantee successful differentiation, but it can be a gre a ts t a rt. Over the 20th century some trademark sh a ve grown into enduring icons.

The MGM lion first roared in 1928 for the silentmovie White Shadows of the South Seas. Work outthe technology on that one! And if you have ever

wondered whatit says in the c i rcle that framesthe lion, try ArsGratia Artis–Artfor Art’s Sake.

Page 5: Lovemarks Book

They can’t stand out in the marketplace and they are struggling to connect with people. Here are six reasons why.

1. Brands are worn out from overuse

Michael Eisner of Disney has called the wordbrand ‘over-used, sterile, and unimaginative.’ He’sright. As the brand manual grows heavier andmore detailed you know you’re in trouble. Makingsure the flowers in reception conform to the brandguidelines just shows you are looking in the wrongdirection. Consumers are who you should be paying attention to. What matters to them.Otherwise, you’re hiding, and you’re in trouble.

2 . Brands are no longer mysterious

There is a new anti-brand sensibility. There ismuch more consumer awareness, more consumerswho understand how brands work and, moreimportantly, how they are intended to work onthem! For most brands there is nowhere left tohide. The information age means that brands arepart of the public domain. Hidden agendas, sub-liminal messages, tricky moves–forget it. For mostbrands it is a new age of consumer savvy; at theextremes it’s the attacks of Naomi Klein and theanti-global gang.

3. Brands can’t understand the

new consumer

The new consumer is better informed, more critical, less loyal, and harder to read. The whitesuburban housewife who for decades seemed tobuy all the soap powder no longer exists. She hasbeen joined by a new population of multi-gener-ational, multi-ethnic, multi-national consumers.

4. Brands struggle with good

old-fashioned competition

The more brands we invent the less we noticethem as individuals. If you’re not Number One or Two, you might as well forget it. It’s like kids in a family. You might remember the names of threekids, even five. But ten? And the greater the number of brands, the thinner the resources promoting them. You get a treadmill of novelty,production value, incremental change, tacticalpromotions, and events.

5 . Brands have been captured by formula

I lose patience with the wanna-be-science ofbrands. The definitions, charts, diagrams, andtables. There are too many people following thesame rule book. When everybody tries to beat differentiation in the same way nobody gets anywhere. You get row upon row of what I call‘brandroids.’ Formulas can’t deal with humanemotion. Formulas have no imagination or empathy.

6. Brands have been smothered

by creeping conservatism

The story of brands has gone from daring andinspiration to caution and aversion to risk. Once the darling of the bold and the brave,brands are relying on the accumulation of pastexperiences rather than the potential of futureones. Headstones are replacing stepping stones. If the antics of Richard Branson cause a riot (and they do), how bland and boring has everyone else become?

Page 6: Lovemarks Book

Human beings are powered by emotion, not by reason. Study after study has proven that if the emotion centers ofour brain are damaged in some way, we don’t just lose theability to laugh or cry, we lose the ability to make decisions.Alarm bells for every business right there.

The neurologist Donald Calne puts it brilliantly:

‘The essential difference betweenemotion and reason is that emotion leads to action while reason leads to conclusions.’

You don’t have to be a brain surgeon to get that. The reality we face does not re q u i re mastery of arcane t e r m i n o l o g y, and it’s not about evaluating competing theories about how the mind works or how it is stru c t u red.

The brain is more complex, more densely connected, and more mysterious than any of us can dream. T h a t’s as much as we have to know. Emotion and reason areintertwined, but when they are in conflict, emotion winsevery time. Without the fleeting and intense stimulus ofemotion, rational thought winds down and disintegrates.

‘Consumers who make decisions based purely on facts represent a very small minority of the world’s population.They are people without feelings, or perhaps people whoput their heart and emotions in the fridge when they areleaving home in the morning, and only take them out againwhen they go back home in the evening. Although even for these people, there is always some product or servicethey buy based on impulse or emotion.’

–Maurice Levy, Chairman, Publicis Groupe, Paris

Page 7: Lovemarks Book
Page 8: Lovemarks Book

The Lovemarks of this new century will be the brands and businesses thatcreate genuine emotional connections with the communities and networksthey live in. This means getting up close and personal. And no one is goingto let you get close enough to touch them unless they respect what you doand who you are.

Love needs Respect right from the start. Without it, Love will not last. Itwill fade like all passions and infatuations. Respect is what you need whenyou are in for the long haul.

Respect is one of the founding principles of Lovemarks.

Management loves the idea of Respect. It sounds serious and objective, easily measured and managed. In fact, Respect has been prodded ands q u e ezed so often over the last century that its real power has been u n d e rvalued. Respect is the foundation of successful business.

At Saatchi & Saatchi we decided one thing was mandatory from the get-go: No Respect. No Love.

But Respect needs to be reinvigorated. We need to understand what itdemands. We need to expand our Respect metrics from financial and production performance to take on the deeper demands Respect makes of us. Respect looks to performance, reputation, and trust as its organizingprinciples. Within each of these principles I believe there is an inspiringcode of conduct to lead you forward.

Page 9: Lovemarks Book

Perform, perform, performRespect grows out of performance. Pe rformance at each and eve ry interaction. Peak performance as the ultimate table-stake of all table-stakes.

Pursue innovationIn n ovation is k a i ze n, continuous improvement, for consumers. Eve ry business today is expected to innovate, and to innovate meaningfully while c reating value.

Commit to total commitmentGoing the full distance is the price of Respect. The new active consumer judges you at eve rye n c o u n t e r, eve ry touchpoint, and will punish f a i l u re by not coming back.

Make it easyThe increasing complexity of many goods and s e rvices has raised the stakes. The equation is simple. If it’s hard to use, it will die. Go o d - byeVCR. Hello DV D .

Don’t hidePeople can only respect you if they know whoyou are. Re m e m b e r, in today’s Internet enviro n-ment there is now h e re you cannot be found.Do n’t even try.

Jealously guard your reputationBuilt over a lifetime. De s t royed in an instant.Consumers today are ruthless if you let themd own. So don’t .

Get in the lead and stay thereTo be out-front can be lonely and uncomfort a b l e ,but re m e m b e r, the lead husky gets the best view.

Tell the truthBe open. Front up. Admit mistakes. Do n’t cove ru p, it will get you eve ry time. Be l i e ve in yo u r s e l f –at times like this it may be the only thing yo uh a ve. And at times like this your reputation isyour premium defense.

Nurture integrityThe corporate shake-ups of the last few years haveput the spotlight back on integrity: the integrity of your people, your products, your services, yo u rfinancial statements and, most import a n t l y, yo u rpersonal integrity.

Accept responsibilityTake on the biggest responsibility of all–to make the world a better place for eve ryone, creating self-esteem, wealth, pro s p e r i t y, jobs, and choices.Quality is the measure by which you exceed expectations. Quality is all about standards. Keep it simple: set high standards and then exceed them.Meet, Beat, Re p e a t .

Never pull back on serv i c eSe rvice is where transactions are transformed intorelationships. W h e re Respect meets Love. It is thefirst moment of tru t h .

Deliver great designAttention Economy 101. Competition is hotand getting hotter. If yo u’re not aestheticallystimulating and functionally effective you justmerge into the crowd. You have to b e d i f f e re n t ,not just a c t d i f f e rent.

Don’t underestimate valueNot just real dollar value but the perception ofvalue. Only when people perceive the value theyare getting as higher than the cost will they respectthe deal you offer. Sam Walton built Wal-Mart,the biggest retail empire in the world, by a relent-less focus on best value.

D e s e rve trustConsumers want to trust you. They want you toremain true to the ideals and aspirations you sharewith them. Practice what you preach. Ne ver letthem dow n .

N e v e r, ever fail the reliability testExpectations skyrocket: cars always start first time,the coffee’s always hot, the ATM is always open.Today reliability is the door charge for Re s p e c tb e f o re the show begins.

Page 10: Lovemarks Book

My ideas we re based on work we had done comparing brands and what we re emerging as Love m a rk s .The best brands we re Tru s t m a rks, we had decided, but the great ones we re Love m a rks. We charted the differe n c e s :

I said in the article:

‘I’m sure that you can charge a premium for brands that people love. And I’m also sure that you can onlyhave one Lovemark in any category.’

BRAND

Information

Recognized by consumers

Generic

Presents a narrative

The promise of quality

Symbolic

Defined

Statement

Defined attributes

Values

Advertising agency

Professional

lovemark

Relationship

Loved by people

Personal

Creates a love story

The touch of Sensuality

Iconic

Infused

Story

Wrapped in Mystery

Spirit

Ideas company

Passionately creative

Page 11: Lovemarks Book

Looking for LoveAs we started to shape Love m a rks at Saatchi & Saatchi we saw howthe Love/Respect Axis could help us work out where they fitted.

Page 12: Lovemarks Book

The L o v e/Respect A x i sSaatchi & Sa a t c h i’s Chairman, Bob Se e l e rt, is a smart man and a great sounding board forideas that are struggling to re a l i ze themselves.

We we re waiting at Auckland airport late onee vening on our way to Los Angeles and I start e don my Love rap. Bob had heard most of itb e f o re but this time I pulled out a napkin andd rew a horizontal line showing Love at one endand Respect at the other.

I showed Bob how it might work. How everythingwas telling us that brands had run out of juice.How they had to evolve into something more.And how I would place this new kind of brandmoving beyond Respect and up into Love at thetop of the line. Products would live at the bottomof the line and standard brands would be at thelower end.

The goal would be at the top of the line. High on Love!

Bob looked at it for a couple of minutes.‘T h e re’s another way to show this to moreeffect,’ he told me. Taking the pen he drew a second line, this one crossing over myL ove / Respect line midway. My line was transformed in an instant into an axis.

Bob was right. The axis format immediatelyshowed Love as a goal above and beyond Re s p e c t .Now we could clearly show the ongoing importanceof Respect and the urgency of moving into a relationship based on Love. Love of design, L ove of service, Love of customers, Love of life.

Without Respect there is no foundation for any long-term relationship. Without the sharpdelineation of the Axis format, it was too easy forour ideas about Love to float off into feelings with no practical edge. Okay if we wanted to bepsychotherapists, but somehow that was not wherewe were headed! Bob brought Love to earth.

Respect is the key to the success of many of our biggest clients. Such success should not be devalued; it ’ s just no longer enough.

Companies like big-time Saatchi & Sa a t c h iclients Toyota and Procter & Gamble havei n vested billions and won astonishing Respect for their products and brands. And they havedone it through sustained feats of focus and self-discipline. W h a t e ver we called the new generation of brands, it was going to needRespect–and a lot of it. Respect, it was clear,had to be table-stakes. No Respect, no admission.

Page 13: Lovemarks Book

Above the low Respect line on the left are most brands.This is where the efforts and investment of the last 50years have gotten them.

But many brands risk falling into the sand trapbelow–tough competition, tight margins, and lack ofindividuality turning them into “blands.” Others havebuilt up high levels of Respect based on sound management and continuous improvement. But whatthey have earned in Respect has little emotion. Sensibleand well-measured, it’s hard to tell one from another.

The high life —In the top right the sun always shines: high Respect,high Love. Why wouldn’t you want to be there? You know who belongs in this quadrant by instinct.Virgin is there. United would like to be. The iMac? Yes.The ThinkPad? Don’t think so. It’s home for Disneylandbut not for Seven Flags. Make your own list.

FADS

COMMODITIES

Stuck in the middle with you

Love

LOVEMARKS

BRANDS

Page 14: Lovemarks Book

Great Stories

Past, Present, and Future

Taps Into Dreams

Myths and Icons

Inspiration

Sound

Sight

Smell

Touch

Taste

Commitment

Empathy

Passion

Lovemarks made immediate sense. Every person we deal withis an emotional human being and yet business had been treat-ing them like numbers. Targets. Statistics.

Respect was something that Saatchi & Saatchi understood.Over the years we had put a lot of time into building our clients’ products into some of the most highly respectedbrands in the world. Now it was time to focus on what madesome brands stand out from the crowd–what made somebrands loved.

When it came to working out what gave Lovemarks their special emotional resonance, we came pretty quickly to:

These didn’t sound like traditional brand attributes. And theycaptured the new emotional connections we were seeking. AsI have already mentioned, we were convinced from the startby a very important idea that became the heart of Lovemarks.

Lovemarks are not owned by the manufacturers, the producers, the businesses. They are owned by the people who love them. From there it was easy to agree that you only get to be a Lovemark when the people who love you tell you so.But just sitting around waiting for consumers to tell youyou’re a Lovemark could mean a very long wait.

Love is about action. It’s about creating a meaningful relationship. It’s a constant process of keeping in touch,working with consumers, understanding them, spending time with them. And this is what insightful marketers, empathetic designers, smart people on the check-out and production line do every day.

Now we were ready to create our principles.

Mystery

Sensuality

Intimacy

Page 15: Lovemarks Book
Page 16: Lovemarks Book

Kevin Roberts passionately believes that love is the way

f o rward for business. In his second book, LOV E M A R K S: T H E

F U T U R E B E YO N D B R A N D S, Roberts recounts the journey from

Products to Trademarks to Brands—and the urgency of taking

the next step up—to Lovemarks.

Roberts offers a lively, critical assessment of brands and

the problems that face them in an increasingly competitive

world. His argument is straightforward. Brands have simply run

out of juice.

The solution? The creation of products and experiences

that have the power to create long-term emotional relation-

ships with consumers.

To get there, Roberts advocates infusing brands with the

fundamental Lovemark elements: Mystery, Sensuality, and

Intimacy. Mystery enters by drawing on the past, present, and

future, the value of myths and icons, and the power of inspiration,

and by tapping into dreams. Sensuality and the five senses can

be used to find touchpoints with consumers. Intimacy is created

through commitment, empathy, and passion. The power of these

dynamic forces is captivatingly presented with lively anecdotes,

living examples, and graphic illustrations drawn from the world

of advertising and beyond.

The idea that consumers, not companies, own Lovemarks

is fundamental. This book shows that not only business

mavens, but the special people that Roberts calls “Inspirational

Consumers,” can shape the future of commerce.

B U S I N E S S / A D V E RTISING THEORYH a rd c o v e r, 8 x 9.75 inches, 224 pages, four-color illustrations thro u g h o u tISBN 1-57687-204-1 $ 2 7 . 5 0

(Cnd $39.95)

KEVIN RO B E RTS

is CEO Wo r l d w i d e

of ideas company

Saatchi & Saatchi,

one of the world’s

largest and most

successful creative

organizations work-

ing on more than

fifty of our most valuable global brands. Heading a

team of more than seven thousand people in

eighty-two countries, Roberts led Saatchi &

Saatchi to become both Advertising Age a n d

Adweek magazines’ Global Agency Network of the

Year in 2003.

‘ Kevin’s passionate belief in

building brands consumers love

is inspirational and effective.’

—A.G. Lafley,CHAIRMAN, PRESIDENT, AND

CHIEF EXECUTIVE, PROCTER & GAMBLE

Can business make the world a better place? Of course it can. Will business take

up the challenge? It is in our best interests to do so, and let’s face it, our best

interests have been a powerful driver for many centuries. What can inspire us

with the emotional urgency required to undertake this epic task? The creation

and rewards of Lovemarks.

l o v e marksthe future beyond brands

Kevin Roberts, CEO Wo r l d w i d e, SAATCHI & SAAT C H I

Foreword by A.G. Lafley, Chairman, President, and Chief Executive, Procter & Gamble

68 Charlton Street, New York, NY 10 014 - 4 6 01

phone: 212 . 6 0 4 . 9 0 74 fax: 212 . 3 6 6 . 5 2 4 7

w w w. p o w e r H o u s e B o o k s . c o m

l o v e m a r k s @ p o w e r H o u s e B o o k s . c o m

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K R I STIAN ORO Z CO, Sales & Distribution Director,

at 212.604.9074 ext. 103, or kristian @powerHouse Books.com

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