uni training singapore 07 08 v3

Strategic Strategic Experiential Experiential BrandingBranding

David VinjamuriJuly 2008

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What We Will Cover

• Building customer experience Brand experience building exercise

• The Branded Lifestyle

• Building experiences with the five senses

• Engaging customers - customer-created experiences

Design a customer-run community

• Technology in Experiential Marketing

Online community exercise

• Engaging employees in delivering the brand promise

Design an employee-branded program for your brand

• Six brand lessons from Accidental Brands

Day IDay I Day IIDay II

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What is Experiential Branding?

1. Engaging experiences created by marketers for your brand

• Ralph Lauren Flagship Store, NYC

• The World of Coke

• Massage Chairs in Brookstone

2. Extending your brand into the customers’ life

• Martha Stewart Houses

• Branny Academy

3. Engaging all the senses – choreograph the brand experience

4. Getting customers to build experiences

5. Brand building through employees

Building Customer Experiences

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Questions

1. How do I build branded experiences for my customers?

2. How does brand engagement translate to increased brand loyalty?

3. How do I ensure these experiences are consistent with my brand strategy?

4. How do I measure the marketing ROI?

5. What are examples if successful brands using brand experiences?

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Goal of Experiential Branding?

INCREASE BRAND EQUITY

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What is Brand Equity?

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Questions• Reduced Marketing Costs

• Trade Leverage

• Attracting New Customers

• Create Awareness

• Reassurance

• Time to Respond to Competitive Threats

• Anchor to Which Other Associations can be Attached

• Familiarity - Liking

• Signal of Substance / Commitment

• Brand to be Considered

• Reason to Buy

• Differentiation / Position

• Price

• Channel Member Interest

• Extensions

• Help Process / Retrieve Information

• Reason-to-Buy

• Create Positive Attitude / Feelings

• Extensions

• Competitive Advantage

Brand Loyalty

Brand Awareness

Perceived Quality

Brand Associations

Other Propriety Brand Assets

BRAND

EQUITY

• Provides Value to Customer by Enhancing Customer’s:

• Interpretation / Processing of Information

• Confidence in Purchase Decision

• Use Satisfaction

• Provides Value to Firm by Enhancing:

• Efficiency and Effectiveness of Marketing Programs

• Brand Loyalty

• Prices / Margins

• Brand Extensions

• Trade Leverage

• Competitive Advantage

Credit: David A. Aaker, Managing Brand Equity

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Brand Equity: McDonalds

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Brand Attributes

PRODUCT ATTRIBUTES

FUNCTIONAL BENEFITS

EMOTIONALBENEFITS

PERSONALITY

ICONS

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1. Product Attributes

• Quick Serve• Consistent• Eat-in / Take-out• Counter / Drive-thru• Popular, basic items (burgers, fries)

• Inexpensive• Lots of locations

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2. Functional Benefits

• Save time

• Satisfy hunger and thirst

• Whole family can enjoy

• Get toys in addition to food

• Don’t spend a lot of money

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3. Emotional Benefits

• No hassles

• No surprises

• Safe haven

• Treat / break from busy day

• Kids have fun

• “Hero” with my kids

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4. Personality / Values

• Happy• Kid-Friendly• Family-oriented• Simple, Basic• Trustworthy• Community oriented• American

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5. Icons

• Golden arches

• Red and Yellow colors

• Ronald McDonald

• Playgrounds

• Happy Meals

• Big Mac

Case Study: Red Bull

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“The thin color is unappetizing”

“It tastes sticky in my mouth”

“Totally disgusting”

What Consumers Said

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“Totally unappetizing … sticky .. disgusting … No other new product has ever failed this convincingly”

- NPD Market Research report on first use test of Red Bull, 1984

Market Research Results

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• Dietrich Mateschitz founds company 1984

• Bad research results

• Huge disputes with Austrian FDA

• Ad Agency cannot come up with a single good campaign idea

A GOOD TIME TO GIVE UP??

Getting the Bull Out

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• Launches in Austria in 1987

• 8x the price of Coke

• Positioned as a ‘cool’ stimulant (Viagra in a bottle)

• Used regulatory trouble to create a big myth

Launch

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“It took five years to gain permission for export into

Germany, Red Bull’s second market… Initially,

Munich became a flourishing black market and

speculation started why the drink was illegal in

Germany: Was it speed-in-a-can, a legal drug? Was

its Taurine sourced from Bull’s testicles, making Red

Bull an over-the-counter Viagra?”

The Red Bull Myth

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• German moms united after Red Bull launched there in 1992 to get it banned again …

… making it wildly popular with teenagers

• Red Bull sold out everywhere in first three months on market …

… Which made it even more popular

Building the Myth

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“Here is a non-alcoholic product about as caffeinated

as a cup of coffee – that’s managed to acquire a

reputation as a surefire wild-times elixir … a party

drink, a stimulant, an aphrodisiac, a raver’s ‘smart

drink’ gone mainstream. The strategy is rumor by

omission and, only when absolutely necessary, denial

… the public has filled in the blanks with speculation

and innuendo.”

The Press and the Myth

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• The taste becomes a selling point.

• It tastes so strong – it must be working.

• Red Bull is always sold as a functional drink – it makes you work better.

• “The Taste Doesn’t Matter” - Mateschitz

What About That Taste?

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• Lots of sampling at the ‘right places’

German Marketing

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• “Flugtag” – German Flying Day

German Marketing

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• 60 aspiring DJ’s invited to Music Academy

German Marketing

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• Bartenders created the ‘Stoli Bully’

=

German Marketing

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• Every employee has to be an enthusiast

• Every vendor is a believer

• Don’t waste time on non-believers

• Believe that they are the underdog

The Red Bull Culture

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Issue Marketing Rules Red Bull Rules

Positioning Aspirational Functional

Advertising Launches Brand Support Role Only

Targeting Want Everyone Want ‘Right’ People

Distribution Broad Availability Limit Availability

Sampling Widespread High Quality Limited

Celebrities Pay for Celebs Don’t Pay Them

Merchandising Logos for All Out of Reach

The Red Bull Rules

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• Focus on Building Brand Enthusiasts as Partners:• Bar staff• Cab drivers

Launching in New York

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• Used exclusivity as a weapon• On-premise sales followed sampling• Limited Retail distribution for years

• Sampling in situ is the key tactic• Always provide a full, sealed can for sampling

Launching in New York

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• Launched Red Bull in Austria in 1987

• Expanded to Germany in 1992

• Sold in 100 Companies in 2004

• Over 1 Billion Cans Consumed Annually

21-Year Report Card

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5 Lessons from Red Bull

• Size is a by-product of success, not success itself

• Build enthusiasts, not just brand users

• Unmet demand is not always bad

• Everyone, including suppliers, must personify the Brand

• Overnight success takes time

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Consistency

Evaluate your brand Expert Brand Insider Brand Lifestyle Brand Challenges Brand

What kind of experience will build your brand?

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Measuring the Benefits of Branded Experiences

1. Top of mind unaided brand awareness

2. NPV (Net Present Value)

3. IRR (Internal Rule of Return)

4. The Brand Scorecard – can include share, awareness, etc.

5. The One Number You Need to Grow (handout)

6. Basic ROI

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Case Study: American Express

http://www.askmrcreditcard.com/americanexpressnyccard.html

http://www.pollingcompany.com/cms/files/2005%20INNYC%20Survey%20Press%20Release.pdf

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Case Study: The Range Rover Experience

Cost

of

Experience

Customer

Fee

Increase

in

Purchase

Interest

Increase

in

Customer

Lifetime

Value

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Case Study: The Magic Kingdom• Created by a movie studio

• Very early Brand Experience (1957)

• Idea from successful studio tour

• Idea was to immerse consumers in the Disney

Brand – let the movies come alive

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Case Study: Sony Style

• How do I showcase innovation?

• How do I get consumers to see my whole line?

• How can I make this an experience?

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Brand Manager Tips

• Think small first – don’t set yourself up for failure

• Consider psychographic success measures – attitudes matter!

• Evaluate partners carefully

• Monitor costs closely

• Have a disaster plan

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• Team up in groups of 4

• Pick an Asian / Global Brand

• Okay to use a brand you work on

• Design a brand experience

• Present Plan –Rationale, Plan, Resources Needed, Measurement

• 45 minutes

Exercise: Brand Experience

The Branded Lifestyle

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• How can we increase consumer involvement with our brands?

• How can I extend brand awareness past traditional usage boundaries?

Create a branded lifestyle

Works for Lifestyle brands

Challenge

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• How can you bring your brand to other parts of your customer’s life?

• Where will your brandy equity be strongest?

• When can this elevate the brand?

The Branded Lifestyle

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• Martha Stewart

• American icon

• Domestic expert

• Seeks perfection

• Memorable experiences

• Martha Stewart Homes

• Design for everyday people

• Sense of style in the suburbs

• Great brand awareness

Martha Stewart Homes

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• Bulgari

• Jewelry

• Fashionable

• Elegant

• Established

• Bulgari Hotels and Resorts

• Luxurious

• Elegant

• Design-driven

• Exclusive

Bulgari Hotels and Resorts

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• Ikea

• Better living by saving money

• Sensible design = Scandinavian design

• Goes with starter homes

• Boklok House

• Good quality, cheaper

• Design is Ikea

• Elevates branding

Ikea Houses

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• Disney

• Kid-focused

• Family-friendly

• Traditional values

• Entertainment

• Celebration, FL

• Traditional values

• Family-oriented

• Walk, not drive

• 9000 residents

Celebration, Florida

Building Experiences with

Five Senses

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• Much of today’s branding relies overwhelmingly on SIGHT

• Opportunities:

• Sound - Is there a distinctive sound associated with your brand? (Intel)

• Smell – Do customers link a smell to your brand? (Rolls Royce)

• Taste – Does your brand evoke a taste? (Colgate, Listerine)

• Touch – Can you identify the brand with your fingers? (Coca-Cola)

Sensory Branding

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Sensory UtilizationRank Brand Sensory Leverage (in %)

1 Singapore Airlines 96.3

2 Apple 91.3

3 Disney 87.6

4 Mercedes-Benz 78.8

5 Marlboro 75.0

6 Tiffany 73.8

7 Louis Vuitton 72.5

8 Bang & Olufsen 71.3

9 Nokia 70.0

10 Harley-Davidson 68.8

11 Nike 67.5

12 Absolut Vodka 65.0

13 Coca-Cola 63.8

14 Gilette 62.5

15 Pepsi 61.3

16 Starbucks 60.0

17 Prada 58.8

18 Caterpillar 57.5

19 Guinness 56.3

20 Rolls-Royce 55.0

Credit: Millward Brown

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Sensory PotentialRank Brand Sensory Leverage (in %)

1 Ikea 23.8

2 Motorola 25.0

3 Virgin 26.3

4 KFC 28.8

5 Adidas 31.3

6 Sony 31.3

7 Burger King 31.3

8 McDonald’s 32.5

9 Kleenex 32.5

10 Microsoft 33.8

11 Philips 33.8

12 Barbie 33.8

13 Nescafe 35.0

14 Nintendo 36.3

15 Kodak 40.0

16 AOL 41.3

17 Wrigley 42.5

18 Colgate 43.8

19 IBM 45.0

20 Ford 46.3

Credit: Millward Brown

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• 1973 – Singapore Girl

• Uniform

• Make-up

• Perfume

• 1990s – Hot Towel Sent (Stefan Floridian waters)

• 1990s – music in lounges

Case Study: Singapore Airlines

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Five-Dimensional Brand Model SMELL

TOUCH

SIGHTSOUND

TASTE

SINGAPORE

AIRLINES

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TOUCH

SIGHTSOUND

TASTECOLGATE

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TOUCH

SIGHTSOUND

TASTE

INTEL

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The Sensory Brand Pyramid

Stimulate

Enhance

Bond

Stimulate: Create interest or anticipation with senses – the smell of warm bread, the sound of a can of Coke opening

Enhance: Use sense to intensify the brand experience – the smell of a Rolls Royce

Bond:Bond: Link a sensory input permanently to the brand – Singapore Airlines cabin scent and music

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• Digital Video Recorder

• Strong competition

• Strong loyalty

• Used

• Touch – feel of remote

• Sound – sound of thumbs-up and thumbs-down button

• Sight – Thumbs-up/down

Case Study: TiVo

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• What is new car smell?

• Every new Mercedes smells the same

• The smell is patented

• It lasts for 6 weeks on average

Case Study: Mercedes Benz

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• Does your brand leverage the maximum number of senses for your industry?

Sensory Audit

3FMGG

Financial Services

E-Commerce

Service Providers

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5Hospitality

Entertainment

Retail

Telecommunication

e-Commerce

(Digital Service)

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Customer Engagement in

Brand Experience

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1990s

• Subculture of Barbie-loving adults starts running Barbie Fashion Shows

• Artists and designers join this movement

• Subversive designs include “Trailer Trash Barbie” and “Big Dyke Barbie”

• Mattel sues fans

• Mattel loses

• Barbie loses cache, Mattel goes into slump and never recovers

Case Study: Barbie

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Early Target:Internet junkiesHorror finaticsFilm buffs

Message:• Did the Blair Witch exist?• Did 3 film students die in the woods trying to find her?• Was “Blair Witch” a snuff film?

Result:• Consumers took over marketing• Gossip spread message

Case Study: The Blair Witch Project

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Case Study: The Blair Witch ProjectCREATING THE MYTH ANTICIPATING THE FILM LAUNCHING THE FILM

Building Momentum

Becoming the “Next Big Thing”

Mass Release

Seeding the Myth Limited Release • Wide-release in 2,000+ theaters

Growing the Myth Switching message from myth to movie • Debuts at NYC’s Angelika Film Center

• 90% of advertising budget spent during this phase

Breeding the Myth The rumor spreads • Introduced at Sundance during midnight screening

• Limited distribution creating long lines and great PR

• Comic book, CD, and book released

Rumor starts • Second clip is shown on Split Screen Show

• Artisan buys distribution rights for $1 million • Advertising starts in phases: print, radio, and then TV

• Film racks up $224 million at the box office

• Myrick and Sanchez appear on John Pierson’s Split Screen Show

• Pierson invites viewers to debate the rumor online

• Pre-screened at 40 colleges with students, but not with critics

• Web site gets 650,000 hits a day

• They show 8 minutes of footage claiming that it was found in the woods

• Blair Witch website goes live

• Mentioned on Ain’t It Cool News website • Media jumps on bandwagon, appear on cover of Time magazine

• The rumor of the missing students was planted

• Team spreads misinformation and drives traffic to website

• Trailers shown on Ain’t It Cool, MTV and after Star Wars movie

• Add more “evidence” to the website – created fake fan sites

• Curse of the Blair Witch “mockumentary” airs on SciFi Channe;

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H.O.G.s

• 400,000 members in 1,000 chapters

• Assisted, not controlled by Harley

• Organize rides and rallies

• Have a voice in the company

• Saved Harley in the 1980s during the Japanese Superbike invasion

Case Study: Harley Owner’s Group

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• 2005 – Sprint contacts 1000 influential bloggers

• Offers them phones and free service for 6 months

• Gives them a forum to submit feedback

• Stays otherwise hands-off

Case Study: Sprint Ambassador Program

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Brand Loyalty Ladder

Brand “Recruitment Process” to gain loyal and involved consumers.

Adoption

Trial

Reconsideration

Retrial

Discovery

Recommendation/ Raving Fan

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• Mindstorm is toy with computer controller

• Targeted at teen boys

• Has adult geek-programmer fan base

• Reaches out to 3 fans

• Gets them to help design the next generation of products

Case Study: Lego Mindstorm

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A Brand to Last Forever

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• Groups of 4

• Pick an Asian / Global Brand (can be yours)

• Design a brand community• Why will people participate?

• What makes it interesting?

• What makes it unique?

• Present Plan

• 45 minutes

Exercise: Brand Community

Technology in

Experimental Marketing

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• Changes in how consumers interact with brands on the internet

• Online – co-creation and co-marketing

• Online community

• Online customization

What We Will Cover

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Internet Penetration by Access Technology

Source: eMarketer

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Visitors to MySpace by Age

AGES MYSPACE VISITORS TOTAL INTERNET

12-17 11.9% 9.6%

18-24 18.1 11.3

25-34 16.7 14.5

35-54 40.6 38.5

55+ 11.0 18.0

Unique Visitors (000) 55,778 173,407

Source: comScore Media Metrix, via eMarketer

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Consumers and Brands Online

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Consumers are taking control

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… but what does it actually mean?

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Co-Creation is a business

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Co-Creation has risks

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Rules of the Road for Co-Creation

• Don’t risk it for brands with high negatives

• Don’t try to squelch bad PR

• Watch closely and respond quickly

• Give consumers a chance to be creative

• Mind the details

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The Real Co-Creation

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The Real Co-Creation

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Online Communities

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What is a community?

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What does a community do?

TRADE

COOPERATE

SOCIALIZE

PROTECT

What other functions?

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Why Basic Economic Theory Kills Community

Mobility of LaborThese are the top 50 fastest-growing markets in the U.S., ranked in order of growth, according to the 2000 Census

Source: http://www1.move.com/Finance/Census/Top50MSAs.asp?poe=realtor

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Why Online Communities Exist

SHARED INTEREST

TRADE THINGS

NEED FOR INFORMATION

FIND A PARTNER

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Why Do Some Communities Succeed and Others Fail?

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Other Lessons For Communities

• Ability to coexist with neighbors

• Understanding and use of limited resources

• Cohesiveness

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Other Lessons For Communities

• Meet mutual needs

• Provide security

• Coexist with external environment

• Cohesive organization

• Address problems of the commons

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Types of Online Communities

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The Clique

• Small

• Exclusive

• Anti-Establishment

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The Network

• Large

• Move information quickly

• Loose Affiliation

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The Cult

• Rituals

• Belief system

• Levels of Access

Q: Do you belong to an online cult community?

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The Nation

• Egalitarian

• Sovereign

• Driven by a cause

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Exercise

• Divide up by computers - 1 instruction card per person

• Go to this URL: www.handcraft.ning.com

• Create an online profile (1 profile for each group)

• Note your:

• Area of expertise

• Information needs

• Desire(s)

• Try to get your information, needs and desires met

• No talking - all communication must be through the social network

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Roles of an Online Community

Talking

Energizing

EmbracingSupport

Listening

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Listening

• Community become online research

• Qualitative and quantitative

• Allows deep interaction

• Empowers consumers

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Talking

• Active discussions around your product

• Initiation of “non-converts”

• Creating media for community

Lessons

Use Text Mining

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Energizing

• Get members to stimulate word of mouth

• Seek member creativity

• Build excitement

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Support

• Help customers get answers

• Allow customers to help each other

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Embracing

• Bringing consumers in at the next level

• Co-design

• Joint-planning

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Starting an Online Community

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Key Steps: Community Building

• Agree of measures of progress

• Should be deeper than just members or pageviewers

• Make the space flexible

• Members need to be able to create topics of discussions

• Create standards of behavior

• Have a crisis plan in place

• Quick decisions on troublemakers

• Plan for hidden costs

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Hidden Costs of a Community

• Advertising and “kick start”

• Ongoing content creation

• Community management

• Crisis Management

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Tips for growing online communities

• Start provocative conversations

• Monitor and stay engaged

• Identify:

• Influentials

• Hot topics

• Trouble Makers

• Create program for brand evangelists

• Extra access

• Training

• Early information

• Create applications for existing social networks

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A Case Study: Brooklyn Museum

Situation: 2006

• Brooklyn Museum needs to attract and retain more visitors

• User base is young and internet-savvy

• Museum is moving content online

• No budget for online initiatives

Steps:

• Created cellphone tour of new exhibit

• Created a graffiti mural wall Flickr site for graffiti wall

• Created online graffiti drawing projects

• Created a podcast

• Used MySpace collaborating with popular MySpace artist to get word out on exhibition

• Created “Community” on Brooklyn Museum website

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Thoughts on Online Communities

1. Community First, Marketing Second

2. Don’t underestimate ongoing maintenance costs

3. Be ready for detractors

4. Stimulate the community

5. Be flexible about where your community migrates

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Online Customization

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The Old Paradigm is WWW

• Comprehensive• Brilliant• Exhausting!!

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New Paradigm - My Web

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RSS Pulls Content To ME

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Exercise: Create iGoogle, My Yahoo Page

1. Divide into groups (1 group per computer)

2. Go to www.my.yahoo.com or www.google.com/ig

3. Set up a page that will:• Track Merchant News• Keep you up to date with marketing blogs• Give you news• Allow you to read other favorite sites or blogs• Make sure you pull in at least 2 RSS feed sites

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Widgets Customize My Desktop

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I use IM for work …

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The Brand Adoption Model

Adoption

Trial

Reconsideration

Retrial

Discovery

Recommendation/ Raving Fan

Engaging Employees in

Delivering the Brand Promise

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• They know your brand best

• They are invested

• Their opinion can greatly damage you if negative

• Improving their opinion strengthens the brand

• They must understand the brand promise to deliver it

Why Think About Employees?

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• They know your brand best

• They are invested

• Their opinion can greatly damage you if negative

• Improving their opinion strengthens the brand

• They must understand the brand promise to deliver it

Why Think About Employees?

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• Early News

• Discounts

• Tell-a-friend bonuses

• Exclusive access

The Employee as Brand Insider

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• New Tagline in 1998? – “The Best Cancer Care Anywhere”

• Promise failed

• Meaning of “care”

• Retained support staff

• The Janitor Incident

Case Study: Memorial-Sloan Kettering

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• Train them in Brand Positioning

• Entrust them with positioning statement

• Use professionals to train

• Focus on the lesson – everything affects the brand

• Build branding skills among employees

Training Employees

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• Focus on behavior, not attitude

• Describe specific examples

• Illustrate the negative impact on the brand

• Consider giving a PTO (paid time off) leave

• Ask for a new commitment

Dealing with Negative Employees

http://gothamist.com/2008/01/04/starbucks_baris.phphttp://www.cnn.com/2008/LIVING/wayoflife/03/27/heroes.andersen/index.html

Vs.

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• Groups of 4

• Design an employee marketing program

• Explain employee benefits and employee responsibility

• Explain costs and potential revenue/costs savings

• 45 minutes

Exercise

Six Brand Lessons from Entrepreneurs

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XXXX

XX

What is an Accidental Brand?

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XX1. Must be started by someone with no

formal marketing training

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2. Must solve their own problem

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3. Brands 10+ years old

Six Lessons from Accidental Brands

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Memory: 20 GB 20 GB

Songs: ~4500 ~4500

iPod Second Generation

July 2002

Creative NOMAD Jukebox Zen

June 2002

http://docs.info.apple.com/article.html?artnum=61688-en http://www.mp3newswire.net/stories/2002/nomadzen.html

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Am I being polite?

Did I offer to carry her

bags?

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I’m not giving him my bags.

Do I have to tip him?

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Did I greet the

customer with his name?

Do we have his loyalty program

number?

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Did I do something

wrong?

Why isn’t she making

eye contact?

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http://www.columbia.com/tv_ads/tv_ads.aspx

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Time to $100 Million in Revenue

22 years

21 years10 years

8 years

4 years

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Μύθος (míthos) - Mythos * From μυθολογέω "I tell tales," μυθολόγος "legend," μῦθος "story" and λέγω "I say"

* Definition: a usually traditional story of ostensibly historical events that serves to unfold part of the world view of a people or explain a practice, belief, or natural

phenomenon

λόγος - Logos * From λέγω - "I say"

* Definition: the divine reason implicit in the cosmos, ordering it and giving it form and

meaning.

Mythology – a story with a lessonMythology – a story with a lesson

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David Vinjamuri

[email protected]

212-543-3200

uni training singapore 07 08 v3

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