1. 1. Make the Most of a Polarizing Brand Harvard Business Review Article By Xueming Luo, Michael Wiles, and Sascha Raithel Harvard Business Review Article Analysis 1
2. 2. Introduction Harvard Business Review Article Analysis 2
3. 3. Harvard Business Review Article Analysis 3 Love-em or hate-em ? Polarizing Brands are here to stay! Sometimes using that characteristic can help boost sales and shape public perception. Owning up to Miracle Whips polarizing nature amongst users helped boost sales by 14% and increase social media postings by 631%
4. 4. Knowing Statistics +ve & -ve Important Harvard Business Review Article Analysis 4
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7. 7. Statistics are They help us segment the market into various parts as per our needs. They help us identify the target audience who we need to convince They also help us know our fervent suporters and naysayers Important for rigorous analysis and effective marketing Harvard Business Review Article Analysis 7
8. 8. Till They Become our Enemies! Must tread carefully. Mean scores can be deceptive sometimes especially while analyzing polarizing brands. Harvard Business Review Article Analysis 8
9. 9. The Good, Bad & Ugly Stock Market study suggests that highly polarizing brands tend to perform more poorly than others, but they also tend to be less riskyto exhibit relatively little variation in stock price. Harvard Business Review Article Analysis 9
10. 10. Tools of Use: Brand Dispersion Statistics like Brand Dispersion help measure polarization Higher percentages of brand lovers and haters, the greater the polarization. Harvard Business Review Article Analysis 10
11. 11. Tools of Use: Standard Deviation Another way is to calculate the standard deviation of consumers overall ratings. Higher standard deviations indicate greater polarization. More precise and can be especially useful when brands are rated on 3-point or 5-point scales. Mostly similar results given by both methods. Harvard Business Review Article Analysis 11
12. 12. McDonalds vs. Intel (Polarization Survey) Harvard Business Review Article Analysis 12 Highly Polarizing Brand 33% consumers love it 29% consumers hate it Low Polarizing Brand 33% consumers love it 3% consumers hate it
13. 13. Capitalizing on Polarization Placate the haters Poke the haters Amplify a polarizing attribute Harvard B usiness Review Article Analysis 13
14. 14. 1. Placate The Haters Change the haters mind by addressing points of concern Creates a larger pool of customers & reduces negative word of mouth Harvard Business Review Article Analysis 14
15. 15. A Case in Point: Betty Crocker, General Mills Harvard Business Review Article Analysis 15 Problem In late 2000s, the brand, synonymous for baking mixes, was suffering due to rising concern about obesity and criticism of food marketing techniques In 2008, 4.5% of customers were Betty Crocker Haters A Subsidiary Of
16. 16. A Case in Point: Betty Crocker, General Mills Harvard Business Review Article Analysis 16 Solution & Results April 2009, started a blog, MyBlogSpark, to defuse complaints and address concerns Became first major brand to develop gluten free mix and partnered up with Celiac Disease Foundations to start liveglutenfree.com %age of haters dropped to 2.8 percent in 2011 from 4.5% in 2008 A Subsidiary Of
17. 17. 2. Poke The Haters Succeed by intentionally antagonizing the detractors Ardent supporters mount defense on buzz created & help sway neutral customers. Harvard Business Review Article Analysis 17
18. 18. A Case in Point: Ryanair Harvard Business Review Article Analysis 18 Status Quo & Policy Ryanair, a low cost European Airline has always sought to cut budgets and provide services at lowest possible cost Keep needling critics of its no-frills service by making new proposals to trim amenities, eg: $70 to print boarding pass!
19. 19. A Case in Point: Ryanair Harvard Business Review Article Analysis 19 Results Observed Difficult to discern sometimes between genuine proposals and ones offered in jest, eg: fat tax and leaving just one toilet in the plane Making witty proposals, even if not fully implemented, within limits can cement reputation of company to go to great lengths
20. 20. 3. Amplify A Polarizing Attribute Sometimes a single factor is the cause of hate amongst detractors Creating a different product to amplify differentiation, can help bolster loyalty amongst (and revenue from) diehard fans Harvard Business Review Article Analysis 20
21. 21. A Case in Point: Marmite Harvard Business Review Article Analysis 21 Status Quo & Policy Marmite, is a distinctively salty British condiment True to its polarizing nature since 1902, its tagline is Love it or Hate it In 2010, a new extra strength product, Marmite XO, was created to amplify the point of polarization Results Observed 30 devoted fans were brought to a sample tasting, accompanied with Marmite-flavored cocktails A Facebook group set up after the tasting, in promotion of the new product generated over 54,000 visits to the companys website Marmite XO sold off the shelves as soon as it came!
22. 22. Creating Polarization Drive a wedge in the market Launch a provocative ad Harvard Business Review Article Analysis 22
23. 23. 1. Drive A Wedge In The Market Sometimes being all things to all people can backfire heavily Therefore consumer segmentation is created, which increases polarization and boosts revenue Harvard Business Review Article Analysis 23
24. 24. A Case in Point: Magners vs Strongbow Cider Harvard Business Review Article Analysis 24 Initial Step Taken By Magner Starting marketing cider, usually served without ice, as a refreshing iced summer beverage to target the young crowd Sales soared amongst young upscale professionals, who previously didnt consume cider, a drink usually consumed by the working class warm Counter Step Taken By Strongbow Strongbow observed and capitalized on the newly segmented market, between the traditional working class and the youth Sales for Magner declined in the colder months, as Strongbow invested more heavily in the core warm cider market Strongbow sales rose by 29% in 2009, beating overall cide sales by 6%, as its acceptance amongst working class increased
25. 25. 2. Launch A Provocative Ad (Sample On Next Slide) Marketers try to increase visibility by running ads all but designed to turn off a certain share of viewers Harvard Business Review Article Analysis 25
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27. 27. A Case in Point: Progressive Insurance Harvard Business Review Article Analysis 27 Policy Brought In Effect & Results Observed Launched Ads in 2008 featuring super peppy Flo, in contrast to animals sported in rival ads Big Personality Flo polarized viewers, with some adoring her and others finding her annoying Despite ad being highly disliked, the campaign and negative reaction increased brand awareness & sales.
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29. 29. Takeaways & Words Of Wisdom New troves of data becoming more available each day. Brand managers must use tools at their disposal to analyze Brand Dispersion & Standard Deviation of their brands appeal amongst users Once Popular and Non-Polarizing Brands can nowadays become quickly polarizing Must use power of social media effectively, and when the need be we must Capitalize on the Polarization There may also come times when it may be strategically wise to Create Polarization & we must seize the opportunity Harvard Business Review Article Analysis 29
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31. 31. Credits & References Flickr.com Images.google.com Youtube.com Make the most of a polarizing brand, HBR article by Xueming Luo, Michael Wiles, and Sascha Raithel Harvard Business Review Article Analysis 31
32. 32. Created by Dhananjay Goel, IIT Delhi, During an Internship by Prof. Sameer Mathur, IIM Lucknow. www.IIMInternship.com Harvard Business Review Article Analysis 32 PROF. SAMEER MATHUR IIM LUCKNOW DHANANJAY GOEL IIT DELHI