These 8 analytical principles will reshape the mind of every marketer

One of the biggest skill gaps for many marketers is the ability to develop an analytical story to set up smart decisions. Analytics is not just math. Marketers either struggle to dig into the data or they struggle to tell a strategic story that summarizes the mounds of data they have gathered. Too many people get into marketing for the creative nature of brand management, but if you cannot think analytically, you will get stuck at one point. You need to be able to use facts to support your opinions or what you say will come across as an empty opinion that risks leaving a room divided. Here are the 8 principles that will help to make you a smart analytical thinker. 

Analytics Thinking

Principle #1: Use facts to support opinions or else what you say comes across as an empty opinion that leaves a room divided.



One great tool to help dig deeper is called the “Five Questions Analysis” that forces you to go deeper. Start with your opinion; then ask “so what does that mean?” to get a layer deeper. Ask it again to go one more layer deeper. Keep asking it up to five times, each time using the data analysis to move from unsubstantiated opinion to action-able insight. This tool will also help you avoid getting caught off guard with those challenging questions “Did you think about…” because you have already challenged yourself to dig in deep everywhere on your brand.

Analytics Thinking

 

Principle #2: Always find comparisons. Absolute numbers by themselves are useless.

Absolute numbers by themselves are useless. A friend of mine was at a meeting with her CEO and was asked a really tough question that she should have known, but did not have. So she said “forty percent”. And then they both stared each other for ten seconds, him not knowing if that was good or bad, and her not wanting to show any hesitation. I would not recommend blurting out a number. Analytics ThinkingHowever, I always remember this story because it really says how useless one data point really is. With every number, you have to always draw out comparisons to force yourself to find data breaks that begin to tell a strategic story. Only the relative nature to a number will you find the data break that helps you tell a story. Is 60 degrees Fahrenheit (15 degrees Celsius.) warm or cold? If it were in Canada in the middle of January, it would be a record setting heat and front-page news. Conversely, if it is the high temperature for the middle of June in Florida, it might even make the national news.

Never give a number without a relative nature. The relative comparison helps ground the data, by looking at how well it does versus prior periods, competitors, forecasts, other regions, norms or the category. Is it up, down, or flat? Use comparative indexes and cross tabulations to find the data breaks, showing the correct trend line that will help you draw the right conclusions.

Principle #3: The analytical story comes to life when you see a break in the data.




Comparative indexes and cross tabulations can really bring out the data breaks and gaps that can really tell a story. Use the “so what” technique to dig around and twist the data in unique ways until you find the point in which the data actually breaks and clear meaningful differences start to show. This is where the trend is exposed and you can draw a conclusion.

Principle #4: Analysis should start by posing hypothetical conclusions that answer “Where are we” and “Why are we he

Thinking time means asking the right questions. Since the smartest strategic thinkers ask questions, I want to introduce a 360-degree strategic model with 5 strategic questions that force you to look at the brand’s core strength, consumer strategy, competitive situation, the brand’s situation and how engaged your consumer are with the brand.

  1. What is the core strength your brand can win on?
  2. How important is the decision and how involved are consumers?
  3. What is your current competitive position?
  4. How tightly connected is your Consumer to your brand?
  5. What is the current business situation your brand faces?

Strategic Thinking

The intention of the 360-degree strategic thinking model is the starting point to force your thinking and discussions with your team. Each of the five questions has four possible answers, but the model forces you to make ONE choice for each question. What I recommend is that you gather a good cross-functional team and battle out each question. Some will be easy to answer, others will challenge the team and force both the discussion and the decision. What might seem like a small debate “whether your brand is product-led or story-led, should change your entire strategy, the focus of your investment and your brand message. Whether your brand is liked or loved should force your strategic choices to look for ways to tighten the bond with your consumers. Shifting from one competitive strategy to another should be guided by your understanding of where you stand currently in the market. Whether you brand is facing poor external business results that would drive a turnaround or whether your brand is internally creating confusion across various elements would drive the need for a brand re-alignment. And finally, as brands move to the execution stage to engage their consumers, they need to understand whether the main focus will be to drive consumer involvement or whether to drive the importance of the decision. As you start to dig in on these questions, keep pushing yourself to ask even richer and richer questions.

Principle #5: Map out what do we know, against what do we assume and what do we need to find out, to help focus deep dive.

The best Brand Leaders know when to be a strategic thinker and when to be an action thinker. Strategic thinkers see “what if” questions before seeing solutions, mapping out a range of decision trees that intersect and connect by imagining how events will play out. They take time to reflect and plan before acting, helping you move in a focused efficient fashion. They think slowly, logically, always needing options, but if go too slow, you will miss the opportunity window.

A good tool to get you thinking in terms of questions: separate your analysis into 5 buckets:

  1. What do we know? This should be fact based and you know it for sure.
  2. What do we assume? Your educated/knowledge based conclusion that helps us bridge between fact, and speculation.
  3. What we think? Based on facts, and assumptions, you should be able to say what we think will happen.
  4. What do we need to find out? There could be unknowns still.
  5. What are we going to do? It’s the action that comes out of this thinking.

Analytics Thinking

 

Principle #6: Like an old school reporter, two source of data or two data points on the trend line validates the truth of the story.

Avoid taking one piece of data and making it the basis of your entire brand strategy. Make sure it’s a real trend. Dig around until you can find a convergence of data that leads to an answer. Look to find 2-3 facts that start to tell a story, and allows you to draw a conclusion. The good pure logic in a philosophical argument they teach you is “premise, premise conclusion” so if you see one trend line, look for a second before drawing a conclusion.

Analytics Thinking

 

Principle #7: Use tools that can help organize and force deep dive actionable thinking. 

A Force Field analysis is best served for those brands in a sustaining position where marketing plays the role of driving innovation and creativity within a box. Always keep in mind that Drivers and Inhibitors are happening now. You can see the impact in the current year. Anything in the future gets moved down to Opportunities and Threats which are not happening but could happen. Invariably, people mix this up and things that could happen move up when they really shouldn’t.

Analytics Thinking

Principle #8: Turning analysis into story for management decisions

You have to know how to write an analytical slide that can help convince management of your analysis. A best-in-class analytical slide helps project the story up to your management team. It should include a captivating headline that summarizes the story, 2-3 key points that are rich in data, supporting visuals and most importantly you need to include an actionable recommendation based on the analysis. The biggest mistake I see is that brand leaders forget the actionable recommendation, thereby giving up their leadership on the brand to their boss.

Analytics Thinking

 

Good analytics get you to the point of “So what do you think”. From there, you will have to be a smart decision-maker.

 

Below is our workshop we run to help Brand Leaders improve their analytical thinking:

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands

Graham Robertson Bio Brand Training Coach Consultant

 

 

64 analytical questions to help you understand your brand’s performance

You should do a deep-dive business review at least once a year on your brand. Otherwise, you are negligent of the brand, where you are investing all your resources. Dig in on the five specific sections—marketplace, consumers, channels, competitors and the brand—to draw out analytical conclusions to help set up your brand’s key issues, which you answer in the brand plan.    

brand analytics  

Deep-dive review

  1. Marketplace: Start by looking at the overall category performance to gain a macro view of all significant issues. Dig in on the factors impacting category growth, including economic indicators, consumer behavior, technology changes, shopper trends, and political regulations. Also look at what is happening in related categories, which could impact your category or replicate what you may see next.
  2. Consumers: Analyze your consumer target to better understand the consumer’s underlying beliefs, buying habits, growth trends, and critical insights. Use the brand funnel analysis and leaky bucket analysis to uncover how they shop and how they make purchase decisions. You should understand what they think when they buy or reject your brand at every stage of the consumer’s purchase journey. Uncover consumer perceptions through tracking data, the voice of the consumer, and market research.
  3. Channels: Assess the performance of all potential distribution channels and the performance of every major retail customer. Understand their strategies, and how well your brand is using their available tools and programs. Your brand must align with your retail customer strategies.
  4. Competitors: Dissect your closest competitors by looking at their performance indicators, brand positioning, innovation pipeline, pricing strategies, distribution and the consumer’s perceptions of these brands. To go even deeper, you can map out a strategic brand plan for significant competitors to predict what they might do next. Use that knowledge within your own brand plan.
  5. Brand: Analyze your own brand through the lens of consumers, customers, competitors, and employees. Use brand funnel data, market research, marketing program tracking results, pricing analysis, distribution gaps, and financial analysis. You should be managing your brand’s health and wealth.

To kickstart your review of the marketplace, here are 10 probing questions:

  1. How is the category doing relative to the economy?
  2. Look at the last five years and explain each of the ups and downs in the category.
  3. What is driving category growth? What is holding the category back?What are the significant open opportunities you can use to your advantage? What are the risks to the categories in the next few years?
  4. What category segments are growing, declining or emerging?
  5. What are the macro trends influencing or changing this category?
  6. What is the role of innovation? How fast does it change? Which innovations are transforming the category?
  7. Which regional or geographic trends do you see?
  8. Who holds the balance of power in the category: brands, suppliers, channels, or consumers?
  9. Look at other issues: Operations, inventory, mergers, technology, innovation, investments, global trade.
  10. What is the overall value of the category? Any price changes? Major cost changes?

To kick-start your review of the consumers, here are 10 probing questions:

  1. Who are your possible target consumer segments? Are they growing? How do you measure them?
  2. Who are the consumers most motivated by what you have to offer?
  3. Who is your current target? How have you determined demographics, behavioral or psychographic, geographic, and usage occasion? Generational trends?
  4. How is your brand performing against KEY segments? Share, sales, panel or funnel data, tracking scores?  What about by channel or geography?
  5. What drives consumer choice? What are the primary need states? How do these consumer needs line up to your brand assets? Where can you win with consumers?
  6. Map out the path to purchase and use brand funnels to assess your brand’s performance in moving through each stage. Are consumers changing at stages?  Are you failing at stages?
  7. What are the emerging consumer trends? How does your brand match up to potentially exploit them? Where would your competitors win? 
  8. What are the consumer’s ideal brand experiences and unmet needs we can address?
  9. What are the consumer’s emotional and functional need states? How does the brand perform against them? How are you doing in tracking studies to meet these benefits?
  10. What is the consumer’s perceptions of your brand and your competitors? Voice of the consumer. 

10 probing questions to kick-start your channels review

  1. How are each the channels performing? Are there regional differences by channel? Channel shifts?
  2. Are there new and emerging channels? Are there channels on the horizon, not yet developed?
  3. What are the strengths and weaknesses of each channel?
  4. Do you understand the strategies of your retail customers?
  5. Do you have the competencies to service your customers? 
  6. Who are the top 5 customers? What are their main strategies? How does our brand fit into that plan?
  7. Who are your primary and secondary customers?  Have you segmented and prioritized for growth versus opportunity? How large are they? What are their growth rates?
  8. How is each customer performing? How profitable is that customer for your brand?
  9. How is your brand doing within each customer? What are your brand’s strength and weaknesses?
  10. How is the relationship with the customer?  Who is the category captain of your key accounts and why?

Here are 10 questions to kickstart your competitor review:

  1. Who are your main competitors? How do they position themselves?
  2. What are your competitor’s use of communication, new products, and go-to-market strategy? How are they executing against each? 
  3. Describe your competitor’s operating model, culture, and organization structure. 
  4. What are your competitor’s strengths, weaknesses, opportunities, threats?
  5. How is your competitor doing regarding market share, customer market shares, investment, margins, innovation, culture, share of voice, or any regulatory advantage?    
  6. Map out the competitor’s brand plan: vision, goals, key issues, strategies, and tactics.
  7. What is the culture at your competitor and what is the role culture plays in their brand?
  8. What is the investment stance and expected growth trajectory of your competitor’s brand? How much and where do they invest? What are the marketing and commercial focus? What is their ROI?
  9. What are your competitor’s brand strengths, brand assets, and reputation? 
  10. Are there any public materials about the competitor, including strategy and financial results? 

10 probing questions to assess your brand’s performance:

  1. What consumer benefit can you win with, which is ownable, unique, and motivating for consumers?
  2. What is your biggest gain versus prior periods? What is your biggest gap?
  3. What is your market share? Regionally? By channel? Where is your strength? Where is your gap?   
  4. How are you performing on key brand tracking data? Penetration? Frequency? Sales per buyer or per trip? 
  5. What are your brand’s scores on the brand funnel?    
  6. How is your program tracking data doing? Where could you improve?
  7. How far can you “stretch” your brand into other opportunities? 
  8. What is your current operating model?    
  9. What is your culture? Do you have alignment with the brand story and your employees?
  10. What is the innovation process and capability of the organization?

10 probing financial questions to help assess your brand’s worth:

  1. What is your brand’s compound annual growth rate (CAGR)? Explain the ups and downs over the past five years.
  2. What are your gross margins and contribution margins over last five years? Can you break it out by product line? Is there more pressure from price or the cost of goods?
  3. What is your brand’s marketing budget breakout? Variable direct costs versus indirect fixed dollars? What is the break between media and creative production? Consumer spend versus trade spend?   
  4. Have you completed any pricing elasticity studies? What did you learn about your brand? If you did increase your price, what did you see in the marketplace?
  5. How is your brand’s overall strategy impacting your brand’s profits? How do your decisions on your brand’s core strength, consumer connection, competitive pressures, and situation impact your financials?
  6. How are your current brand/business performance metrics, brand’s market goals, and financials linked?
  7. Over the past five years, what are the programs that drive the highest and lowest ROI?
  8. How does your business model impact your overall profit? What are you focusing on right now?
  9. What are your forecasting error rates? Is there a seasonality impact? How do economic factors impact your brand’s financials? How reasonable are your inventory levels?   
  10. What financial pressures do you face on an annual or quarterly basis?   

4 more questions that summarize the analysis to tackle in your brand plan

  1. What is driving growth? Focus on the top factors of strength, positional power or market inertia that has a proven link to driving your brand’s growth. Your plan must continue to fuel these drivers.
  2. What is inhibiting growth? Focus on the top factors of weakness, unaddressed gaps or market friction that can be proven to be holding back your brand’s growth. Your plan should focus on reducing or reversing these inhibitors to growth.
  3. What are the opportunities for growth? Specific untapped areas in the market that could fuel your brand’s future growth, based on unfulfilled consumer needs, new technologies on the horizon, potential regulation changes, new distribution channels or the removal of trade barriers. Your plan should take advantage of these opportunities in the future.
  4. What are the potential threats to future growth? Changing circumstances including consumer needs, new technologies, competitive activity, distribution changes or potential barriers that create potential risks to your brand’s growth. Within your plan, look for ways to minimize the impact of these risks.

To read more about conducting a deep-dive Business Review, here is our training workshop we use to help Brand Leaders get better in this area

To learn more about this type of thinking, you should explore my new book, Beloved Brands.

With Beloved Brands, you will learn everything you need to know so you can build a brand that your consumers will love.

You will learn how to think strategically, define your brand with a positioning statement and a brand idea, write a brand plan everyone can follow, inspire smart and creative marketing execution and analyze the performance of your brand through a deep-dive business review.

To order the e-book version or the paperback version, click on this link: https://lnkd.in/eF-mYPe

Beloved Brands: Who are we?

At Beloved Brands, our purpose is to help brands find a new pathway to growth. We believe that the more love your brand can generate with your most cherished consumers, the more power, growth, and profitability you will realize in the future.

The best solutions are likely inside you already, but struggle to come out. Our unique engagement tools are the backbone of our strategy workshops. These tools will force you to think differently so you can freely generate many new ideas. At Beloved Brands, we bring our challenging voice to help you make decisions and refine every potential idea.

We help brands find growth

We start by defining a brand positioning statement, outlining the desired target, consumer benefits and support points the brand will stand behind. And then, we build a big idea that is simple and unique enough to stand out in the clutter of the market, motivating enough to get consumers to engage, buy and build a loyal following with your brand. Finally, the big idea must influence employees to personally deliver an outstanding consumer experience, to help move consumers along the journey to loving your brand.

We will help you write a strategic brand plan for the future, to get everyone in your organization to follow. It starts with an inspiring vision that pushes your team to imagine a brighter future. We use our strategic thinking tools to help you make strategic choices on where to allocate your brand’s limited resources. We work with your team to build out project plans, creative briefs and provide advice on marketing execution.

To learn more about our coaching, click on this link: Beloved Brands Strategic Coaching

We make Brand Leaders smarter

We believe that investing in your marketing people will pay off. With smarter people behind your brands will drive higher revenue growth and profits. With our brand management training program, you will see smarter strategic thinking, more focused brand plans, brand positioning, better creative briefs that steer your agencies, improved decision-making on marketing execution, smarter analytical skills to assess your brand’s performance and a better management of the profitability of the brand.

To learn more about our training programs, click on this link: Beloved Brands Training

If you need our help, email me at graham@beloved-brands.com or call me at 416 885 3911

 

The 8 principles of smart analytical thinking in a big data world

 

Principles of Analytical Thinking

For Brand Leaders to keep moving up, you need to be good at all parts of marketing–skills, behaviors and experiences. As you manage your career, try to close gaps in each. The key skills you include brand analytics, strategic thinking, brand planning, decision-making and execution. One of the biggest skill gaps I see is the ability to do deep dive analytics and turn it into an analytical story that can set up decisions. From what I see, most people either don’t know how to dig in or when they dig in, they struggle to tell the story from the mounds of data they have gathered.

Analytics 2016 Extract.001

 

Principle #1: Use facts to support opinions or else what you say comes across as an empty opinion that leaves a room divided.

One tool that I use is the “5 Questions tool” where you start with your hypothesis and then ask “so what does that mean” 5 times, each time helping analysis move from unsubstantiated opinion to action-able insight.

The benefit of this type of tool is it helps avoiding getting caught off guard when your senior management starts asking questions. Once you do that, I like to organize my thinking, like a newspaper (if those still exist) with a Headline, Opinion and 2-3 data points.

Analytics 2016 Extract.002

Principle #2: Absolute numbers by themselves are useless. Always find comparisons.

Only when given a relative nature to something important do you find the data break that tells a story. Is 50 degrees Fahrenheit warm or cold? If it’s Ottawa Canada and it’s December 24th it HOT and it is front page news. If it’s Los Angeles on June 5th, it is COLD and front page news.

Only when given a relative nature to something important do you find the data break that tells a story. You have to ground the data with a comparison, whether that’s versus prior periods, competitors, norms or the category. Every time you talk about a number, you have to talk about in relative terms—comparing it to something that is grounded: vs last year, vs last month, vs another brand, vs norm or vs England’s share. Is it up down, or flat? Never give a number without a relative nature—or your listener will not have a clue.Analytics 2016 Extract.003

 

Principle #3: The analytical story comes to life when you see a significant break in the data.

Comparative indexes and cross tabulations can really bring out the data breaks and gaps that can really tell a story. Use the “so what” technique to dig around and twist the data in unique ways until you find the point in which the data actually breaks and clear meaningful differences start to show. This is where the trend is exposed and you can draw a conclusion.

Principle #4: Draw the hypothesis that answer “Where are we” and “Why are we here”

Before you start your planning process, take a few hours to sit down at your desk and outline a few points for each point. You will start to see how the overall brand plan flows. These 5 questions start to map out your overall analysis, the key issues, the vision, strategy and tactics. One of the best analytical tools we use is 5 simple questions that will make you think:

  1. Where could we be?
  2. Where are we?
  3. Why are we here?
  4. How can we get there?
  5. What do we need to do to get there?

Another set of strategic questions that can get you thinking:

  1. What is your current competitive position?
  2. What is the core strength your brand can win on?
  3. How tightly connected is your consumer to the brand?
  4. What is the current business situation your brand faces?

Principle #5: Gathering the right data allows you to know where you will look for more information to fill in the gaps

Deep analysis requires slower thinking time so you don’t misjudge situation. The best Brand Leaders know when to be a strategic thinker and when to be an action thinker. Strategic thinkers see “what if” questions before seeing solutions, mapping out a range of decision trees that intersect and connect by imagining how events will play out. They take time to reflect and plan before acting, helping you move in a focused efficient fashion. They think slowly, logically, always needing options, but if go too slow, you will miss the opportunity window. A good tool to get you thinking in terms of questions:

  • What do we know? This should be fact based and you know it for sure.
  • What do we assume? Your educated/knowledge based conclusion that helps us bridge between fact, and speculation.
  • What we think? Based on facts, and assumptions, you should be able to say what we think will happen.
  • What do we need to find out? There could be unknowns still.
  • What are we going to do? It’s the action that comes out of this thinking.

Principle #6: Like an old school reporter, you should be looking for two source of data help frame the story.

Avoid taking one piece of data and making it the basis of your entire brand strategy. Make sure it’s a real trend. Dig around until you can find a convergence of data that leads to an answer. Look to find 2-3 facts that start to tell a story, and allows you to draw a conclusion. The good pure logic in a philosophical argument they teach you is “premise, premise conclusion” so if you see one trend line, look for a second before drawing a conclusion.

Principle #7: Use tools that can help organize and force deep dive thinking in key areas.

A Force Field analysis is best served for those brands in a sustaining position where marketing plays the role of driving innovation and creativity within a box. Always keep in mind that Drivers and Inhibitors are happening now. You can see the impact in the current year. Anything in the future gets moved down to Opportunities and Threats which are not happening but could happen. Invariably, people mix this up and things that could happen move up when they really shouldn’t. The best thing about the force field is you can easily take it into an action plan, because you want to keep the drivers going and overcome the inhibitors Then take advantage of the opportunities and minimize or eliminate any serious threats. It’s a great simple management tool.

Principle #8: Turn the analysis into a story to trigger alignment and management decisions.

When building your presentation for your management team, we recommend you use each of the 5 sections we have gone through here: Category, Consumers, Channels, Competitors and Brand. Building the analytical stories is an iterative process where you build your story based on instincts and facts, so that we can turn our instinct opinions into fact based stories.

Analytics 2016 Extract.007

 

Good analytics get you to the point of “so what do you think?” to help you be a better decision-maker.

To read more about Analytical Thinking, here is the workshop that we run for Brand Leaders.

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

Beloved Brands Training program

At Beloved Brands, we promise to make your team of BRAND LEADERS smarter, so they produce smarter work that drives stronger brand results.

  • How to think strategically: Strategic thinkers see “what if” questions before seeing solutions, mapping out a range of decision trees that intersect and connect by imagining how events will play out.
  • Write smarter Brand Plans: A good Brand Plan provides a road map for everyone in the organization to follow: sales, R&D, agencies, senior leaders, even the Brand Leader who writes the plan.
  • Create winning Brand Positioning Statements: The brand positioning statement sets up the brand’s promise to the consumer, impacting both external communication (advertising, PR or in-store) as well as internally with employees who deliver that promise.
  • Write smarter Creative Briefs: The brief helps focus the strategy so that all agencies can take key elements of the brand plan positioning to and express the brand promise through communication.
  • Be smarter at Brand Analytics: Before you dive into strategy, you have to dive into the brand’s performance metrics and look at every part of the business—category, consumers, competitors, channels and brand.
  • Get better Marketing Execution: Brand Leaders rely on agencies to execute. They need to know how to judge the work effectively to ensure they are making the best decisions on how to tell the story of the brand and express the brand’s promise.
  • How to build Media Plans: Workshop for brand leaders to help them make strategic decisions on media. We look at media as an investment, media as a strategy and the various media options—both traditional and on-line.
  • Winning the Purchase Moment: Brand Leaders need to know how to move consumers on the path to purchase, by gaining entry into their consumers mind, help them test and decide and then experience so they buy again and become a brand fan.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911.You can also find us on Twitter @belovedbrands

GR bio Jun 2016.001

 

Would you ever pay more for a bottle of water than you would for beer?

This past week, I was in Shanghai, China and found the price of a bottle of Evian and Fiji water about ten times the prices of local bottled water (Nestle). And when I went into the Beer section, the water was still twice the price of a Budweiser beer (produced locally). You can also buy Coke or Gatorade much cheaper.

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The prices above  are in Chinese Yuan (1 CYN = 0.15 USD), with the US Dollar equivalent being just under $2.00 US for the Evian or Fuji water, and then only 21 cents US for the Nestle water. The Budweiser is only $1 USD and the Coke is about 50 cents US. Given any worries about “don’t drink the water”, you might easily be willing to pay for the Evian. Or just grab a few Budweiser’s and not worry so much about the water.

China is in a state of dramatic change

The economy of China has been going through vast changes and you see it live on the streets of Shanghai. The contrast of the modern sky scrappers of downtown Shanghai, with the small street neighborhoods with laundry hung out on the phone lines. The increasing number of Mercedes driving past old school three wheel bikes carrying layer upon layer of boxes for delivery. High end restaurants contrasting against live chickens being killed and bagged for dinner that night. The small boutique 100 square foot stores and the 80,000 square foot Carrefour Super Markets.

While China has benefited from global trade, making Apple computers and Nike shoes to be sold around the world, the government uses protectionist practices to ensure high transfer pricing to ensure local goods benefit.

A brand like Evian, with water from the French Alps can not maintain that positioning if they begin producing in a factory just outside Shanghai. In the Carrefour, they have three specific aisles for “Imported” goods, all recognizable Western brands, but all with dramatic price premiums to the local products. This aisle might appeal to the high number of expats living in China as well as the growing Chinese upper middle class. The rest of the grocery store has 10-20% global brands interwoven among the shelves of local goods. This sets up two specific strategies, produce locally (for instance Nestle) and compete directly with the local goods, or stay in the “Imported” and use the super-premium pricing as a strategy to set yourself apart.

I remember being in France in the early 1990s, where I found myself walking all over Paris for about 4-5 hours on a 35 Celsius day. I finally came across a store selling Diet Coke and it was the equivalent of $6. I was in shock, but my thirst overcame my Scottish blood and I guzzled down the most expensive Diet Coke of my life. Later on, my wife ordered a glass of wine for $3. One more reminder that if you eat and drink like the locals, you will be much better off.

Global Pricing Management Systems

Global pricing models get very complicated. With a desire to do well in every local market, you must consider regional and global pricing to ensure you avoid any grey-market activity. Most of the big global brands are using pricing corridors by region to ensure local pricing stays local. Here are five things when considering your pricing as you enter new markets.

  1. Define your Pricing Strategy in alignment with your business strategy and business objectives and based on a deep understanding of your own competitive position, customer insight and cost-to-serve. When starting to look at your pricing, here is what you should be considering.
    • Market Price: If you are confused, pricing studies that look at various options to identify the price elasticity. In general, the more loved a brand, a combination of interesting or important are more price inelastic. One water scare and Evian could charge $5 per bottle, without seeing a change in the volume would make it an inelastic price.
    • Value Price: A brand has good value if the price is deemed “fair”. For a marketer, the mid point hits when the perceived price and perceived value match up. If the price is too high, there is a risk of losing customers/volume. If the price is too low, there is a risk of not realizing the full profitability on the brand.
    • Strategic Price: the pricing strategy can actually impact the positioning as much as it just reflects the positioning. A super premium brand like Evian can make the consumer believe it must be a super premium if it really can command that value.
    • Short vs. Long-term Revenue Pricing: Marketers can get caught up in the addiction to pricing promotions. Once you get up to 30-50% sold on deal, the actual price begins to have little meaning for the consumer.
    • Portfolio Pricing (Price Points): One option for a brand entering a local market who wants to maintain the price of their global brand would be to create a specific local brand with a local price. This would allow you to own both the super-premium and the value priced brands, with the consumer never knowing you own them both.
  2. Operationalize Pricing Strategy in marketing activities and generate all required input for Price Execution.  Here are the factors you should be considering when you operationalize your pricing into the new markets.
    • Competitor Responses
    • Not-in-Kind (NIK) Replacements
    • Reduce/Increase attractiveness of business
    • Keep out competition
    • Setting Visible Market prices
    • Customer Reaction Product Pricing Cannibalization
  3. Implement Pricing Strategy and Price Determination framework into daily sales activities and transactional processing. As you evaluate the impact of your pricing in the market, here are the factors you should be looking at.
    • Buying Power
    • Supplier Power
    • Place in the Value Chain
    • Price Elasticity
    • Global vs. Local Supply and Demand
    • Capacity
    • Substitute products
  4. Define pricing capabilities and skill sets, establish pricing organization and assure consideration of legal requirements
  5. Enable pricing capability by monitoring and provision of tools, systems and processes related to pricing in an integrated manner

Pricing Waterfall

It is good discipline for brands to map out and manage their pricing waterfall. This provides a good control tool as you can track the waterfall over time and identify problems you are encountering. Here’s an example of the dimension involved in a pricing waterfall, helping move you from a desired price to a profitable price.

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So would you pay a 90% price premium for the Evian? I did. 

Here’s a presentation we use for the deep dive analytical thinking that can help you determine your pricing.

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911.You can also find us on Twitter @belovedbrands. 

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How to write a Brand Concept that will help you win

A well written concept statement should replicate what you intend to put into the market. And when I say that, it starts with what can realistically fit into a Marketing Execution, either in an ad or a package. Too many Marketers try to jam everything possible into the concept to ensure that it wins. I have seen some put 10 reasons to believe support points. If you are still at the confused stage, do a benefit or claims sort to narrow your list. But never use a concept test to throw every possible thing you could ever say to the consumer.

It starts with doing the Brand Positioning homework

As we dig in on doing our homework on the brand, here are the 4 questions that a winning Brand Positioning Statement must address:

  1. Who is in the consumer target?
    • Who is the most motivated to buy what you do?
  2. Where do you play?
    • Definition of the market that you compete in
  3. What are we are selling?
    • What is your main benefit (rational/emotional)?
  4. Why should they believe us?
    • What support points to back up the main benefit?
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If we look below, the winning zone has to be better, different, cheaper or else not around for very long. You want to avoid competing in the Losing Zone, going head to head with a competitor that can deliver the consumer wants better than you can. The area with the yellow arrow is a the Risky Zone, which is a relative tie. The way to win this zone is by being first, being more innovative and creative or finding the right emotional connection that makes the rational tie less relevant to the consumer decisions. At all costs, avoid the Dumb Zone, where you wage a competitive battle in a space that the consumer does not care about. When you find yourself competing in this space, you will find yourself eventually talking to yourself.

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Who is your target?

Everything starts and ends with the Consumer in mind. Spreading your limited resources across an entire population is cost-prohibitive with low return on investment and low return on effort. While targeting everyone “just in case” might feel safe at first, it’s actually less safe because you never get to see the full impact.Realizing not everyone can like you is the first step to focusing all your attention on those that can love you. It becomes all about choices and you will be much more effective at convincing a segment of the population to choose your brand because of the assets and promise that you have that match up perfectly to what they want. Great brands don’t go after consumers, great brands get consumers to go after the brand. The best way to get consumers motivated is to tap into their need states, by understanding what frustration points they may have. We call these consumer enemies. While products solve regular problems, beloved brands beat down the enemies that torment us every day. What are your consumer’s frustration point that they feel no one is even addressing? To paint the picture of our consumer target, you should use Consumer Insights to help to crystallize and bring to life the consumer you are targeting. The dictionary definition of the word Insight is “seeing below the surface”.Positioning 2016.020 Too many people think data, trends and facts are insights. Facts are merely on the surface—so they miss out on the depth–you need to bring those facts to life by going below the surface and transforming the facts into insights. Insight is something that everyone already knows and comes to life when it’s told in such a captivating way that makes consumers stop and say “hmm, I thought I was the only who felt like that”. That’s why we laugh when we see insight projected with humor, why we get goose bumps when insight is projected with inspiration and why we cry when the insight comes alive through real-life drama. When Consumer Insights are done right, we get in the shoes of the consumer by starting the insight with the word “I” and we use the voice of the consumer by putting the insight in quotes.

As part of the positioning exercise, we recommend that you put together a complete Consumer Profile that outlines the focused definition of the target, add flavor with needs, enemies and insights and then talk about where they are now and where you’d like to move the consumer in the future.

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What’s the Benefit?

The next decision is the main benefit you want to focus on. Doing a Consumer Benefits Ladder helps to organize your thinking as a great tool for bringing the benefits to life.

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The best way to work the Consumer Benefits Ladder is to hold a brainstorming session with everyone who works on the brand so you can:

  • Leverage all the available research to brief the team, helping define the consumer target and get all the consumer insights and need states out.
  • List out all the features that your brand offers, and the brand assets it brings to the table. Make sure that these features are competitive advantages.
  • Find the rational benefit by putting yourself in the shoes of the consumer and seeing the brand features from their eyes: start asking yourself over and over “so if I’m the consumer, what do I get from that?”. Ask up to 5 times and push the answers into a richer zone.
  • Then find the emotional benefit by asking “so how does that make me feel?” As you did above, keep asking, and you’ll begin to see a deeper emotional space you can play in and own.

Put all the information of the group brainstorm into a Consumer Benefits Ladder Worksheet.

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Emotional Benefits

From my experience, Marketers are better at the rational benefits than they are at the emotional benefits. I swear every brand out there thinks their brand should be the trusted, reliable and yet like-able brand. As a brand, you want to own the emotional space in the consumer’s heart as much as you own the rational space in the consumer’s mind. It seems that not only do consumers have a hard time expressing their emotions about a brand, but so do Brand Managers. Companies like Hotspex have mapped out all the emotional zones for consumers. I’m not a researcher, but if you’re interested in this methodology contact Hotspex at http://www.hotspex.biz We have taken this research method and created an Emotional Cheat Sheet for Brand Leaders. This lists out the 8 major emotional consumer zones, optimism, freedom, being noticed, being liked, comfort, be myself, be in control and knowledge.

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To own a space in the consumer’s heart, you want to own and dominate one of zones, always thinking relation to what your competitor may own. Do not choose a list of emotions from all over the map, or you will just confuse your consumer as much as trying to own a long list of rational benefits. Once you narrow the major emotional zone you can own, you can use the supporting words of the Emotional Cheat Sheet to add flavor. Benefits sell and features tell. Stop telling consumers what you do and start telling them what they get and how it will make them feel.

Reasons to Believe (RTB’s)

If we borrow from a classic logic technique below, they teach you to one conclusion and two premise. I took one logic class at University and sat there for 13 straight weeks of premise-premise conclusion. Easy class, but the lesson has stuck with me:

  • All fish live in water (premise)
  • Tuna are fish (premise)
  • Therefore, tuna live in the water (conclusion)

In a positioning statement, the brand benefit would be the conclusion. And the Reason to Believe (RTB) would be the supporting premise. I say this for a few reasons. First, the RTB should never be the conclusion. The consumer doesn’t care about what you do, until they get something from it. The benefit has to come from the consumers’ shoes. Second, if pure logic teaches two premises are enough to draw any conclusion, then you really only need two RTBs. Brands with a laundry list of RTBs are not doing their job in making a decision on what the best support points are. You either force the ad agency to decide what are the most important or the consumer to decide. By deferring, you’re weakening your argument.

Claims can be an effective tool in helping to support your Reason to believe. We look at four types of claims: process, product, third person and behavioral.

Process

  • Detail how your product works differently
  • Showcase your point of difference in the production process.
  • What do you do differently within the production process
  • What added service/details do you provide in the value chain

Product

  • Usage of an ingredient that makes you bette
  • Process or ingredient that makes you safer

Third person

  • Experts in the field who can speak on the brand’s behalf.
  • Past users/clients with proof support of their stories.

Behavioral

  • Clinical tests
  • In market usage study
  • Before and after studies

This is what it looks like when you put them into this format:

For more information on Brand Positioning statements, follow this step by step process in this link: How to Write a Brand Positioning Statement

 

Turning the work into a Brand Concept

Creating the Big Idea: To ensure we have an idea that is big enough to guide every part of the organization, we start by describing the brand as to the products and services that we sell and matches that up to the external brand reputation among consumers. We describe what internal beacons are within the brand that would help guide the entire internal brand culture and organization that supports the brand as well as the brand character as it touches consumers. We would also describe the role of the brand, about how it connects the brand with consumers, the link between the internal soul and the external reputation.

The Big Idea Blueprint below shows everything that must be considered for creating the Big Idea.

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Looking at the example below, taking the information from the concept from above using Gray’s Cookies, here’s how to map it into a concept.

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  • Main headline should capture the big idea of your brand.  Obviously the headline is the first thing they see, so it should contain the big idea that you want your brand to stand behind.
  • Use the opening to connect quickly with your target consumers by starting with their enemy or insight. I love using the enemy because it can be a very arresting way to really make the consumer say “That’s me”.
  • Bring the main benefit to life in a compelling promise statement. I prefer it to have an emotional/rational balance in the promise. At the very least, the emotion modifies the rational. The promise statement then forces us to bring in the two reasons to believe to help back that up.
  • I like to add a motivating call to action at the end to help prompt purchase intent. The concept test will hang on how well the purchase intent score is, so a strong concept almost has to ask for it.
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Anything more than this, you are just cheating yourself. Yes, you might have a better score, but you might not be able to execute it in the market. If you haven’t narrowed down your claims or RTB’s, maybe you need a claim sorting research before you get into the concept testing.

While this helps with HOW to write a concept, ask Beloved Brands how we can help really bring the concepts to life with a workshop with your team as well as writing of the final concept options.  We promise to bring magic to the concept which will help get you into the right positioning.

For a presentation on how to write a Positioning Statement, follow:

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

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How to analyze your Consumers

When leading a dive deep on the consumer, start by figuring out where you are playing, defining who you are serving and who you aren’t serving. Define segments, look at buying habits, growth trends, key insights for each segment. Gain knowledge by mapping out the buying system analysis, leaky bucket, consumer perceptions through tracking data and research. We recommend that you either use some type of panel/scan data if it is available or compile your own data through tracking research. This helps determine what’s going on with consumer behavior beneath the surface. Our preference is the brand funnel tracking tools as it maps out how well your brand is doing at each stage of the consumer buying system.

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How to use consumer tracking data 

From the tracking or household panel data (Nielsen or IRI), you have to understand how your brand is doing on both penetration and the buying rate, in order to fill in the simple equation of  “Sales = (Total Population x Penetration rate) x Buying Rate”.

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  • Penetration Percentage: The percent of households who purchased a product, shopped in a certain channel or retailer at least once during a measured period.
  • Buying rate or sales per buyer: Total amount of product purchased by the average buying household over an entire analysis period, expressed in dollars, units or equivalent volume.
  • Purchase frequency or trips per buyer: Number of times the average buying household purchases your product over a time period (usually a year). Purchase Frequency remains the same regardless of which sales measure is used (dollars, units or Equivalent volume)
  • Purchase size or sales per trip: Average amount of product purchased on a single shopping trip by your average buyer. Like the buying rate, purchase size can be calculated in terms of dollars, units or Equivalent volume.

How to analyze your brand using Brand Funnels

Every brand should understand the details of their Brand Funnel, knowing what’s causing any strength, weakness, changes versus last year or gaps versus competitors. A classic brand funnel should measure awareness, familiar, consider, purchase, repeat and loyal. At the very least, you should be measuring awareness, purchase and loyalty. It’s not just about driving particular numbers on the funnel, but about moving them from one stage to the next.

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The first thing to do (see chart above) is look at the Absolute brand funnel scores (A), comparing them to last year, to competitors or versus category norms. Then look at the brand funnel ratios (B), finding the percent conversion from one stage to the next. To create the ratios, divide the absolute number by the number above it on the funnel. For instance in the example below, take the familiar score of 87% and divide it by the awareness score of 93% to determine the ratio conversion of 91%. That means 91% of those who are aware become familiar.

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The data becomes even more powerful when you start looking at the ratios of your brand in comparison (C) to the ratios of your nearest competitor. In this second part of the analysis, the ratio becomes the focus. Compare the ratios, finding the gap (D) between the two brands at each of the stages. You will start to see where your ratio will either be stronger or weaker than the comparison brand. Analyzing the difference (E) between the 2 brands finds the biggest gaps and tells a strategic story that explains the gap. Looking at the example, we see “Your Brand” and “Brand X” are relatively similar at the top part of the funnel, but your brand starts to show real weakness as it moves to repeat and loyalty. This creates a gap you need to fix through the Brand Plan.

The brand funnel data helps tell where your brand sits on the Brand Love Curve. Indifferent brands have skinny funnels throughout. Consumers treat these brands like commodities. Your Brand Plan need to fuel awareness and consideration to kick-start the funnel. The next stage we call Like It brands, which have funnels that narrow at purchase. These brands need a plan to close leaks by getting their brand message closer to the purchase moment. The Love It type brands have a more robust funnel, but may have a smaller leak at loyal. The plan should continue to feed the love and build strength among loyalists. The most beloved brands have ideal funnels, but you should track and build a plan that will attack any weakness before it is seen or exploited by others.

Market Research Studies

Market Research studies can really help uncover issues on your brand. Some brands keep looking back at a study from 5 years ago, and miss out on the major changes that have happened in the marketplace since. Market Research should provide a view of the who, what, when, where and how behind the overall consumer dynamics of your category or market. They can help you understand how consumer behavior and usage changes by brand, helping explain why consumers buy specific brands and what it is that makes those brands distinctive, outlining the rational and emotional benefits. They help identify any perceived gaps in the consumers mind between the brand promise, consumer expectation and the overall brand performance. And, a good market research study can provide an overall vantage of various consumer segments, looking at lifestyle and demographic dimensions, how they consume media, overall attitudes on key drivers or brand benefits.

Consumer Buying System

When we do our brand planning and marketing execution, we manage the executional tactics using a consumer buying system that starts with the consumer and then maps out how they shop, closely resembling the brand funnel. This tool can really helps focus your activities to where your brand needs the most help, either to continue fueling or closing a gap.

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Here are 10 probing questions to kick-start your consumer review

  1. Who are your possible target market consumer segments? Are they growing? How are you measuring them?
  2. Who are the most motivated consumers by what you have to offer?
  3. Who is your current target? How have you determined demographics, behavioral or psychographic, geographic and usage occasion? Generational trends?
  4. How is your brand performing against the target segment? Share, sales, panel data, funnel data, tracking scores? By channel or geography?
  5. What drives consumer choice? What are the main need states? How so these needs line up to your brand assets?
  6. Map out the buying system and assess your brand’s performance in moving through each stage. Are consumers changing at stages? Are you failing at stages?
  7. What are the emerging consumer trends? How does your brand match up, to potentially exploit? Where would your competitors win?
  8. What is the ideal brand experience and unmet needs we can attach the brand to?
  9. What are the emotional and functional benefits? How is the brand performing against them? How are you doing in tracking studies to meet these benefits?
  10. What are consumers’ perceptions of your brand and your competitors?

 

Here’s our latest newsletter on How to lead a deep-dive business review.  Feel free to download it.

 

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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How to write a Monthly Report for your brand

“You run the brand. Don’t Let the Brand Run You”

Every brand should have a monthly report to track how the brand is doing through the course of the year. In fact, if you are investing in a brand, it’s almost negligent not to do one. While these reports can feel tedious to write, the 3-4 hours it takes to dig in is a good investment in discipline, knowledge as well as maintaining that touch-feel of managing of the brand.

The monthly report serves as a guide for all those across the company to stay on track with the annual plan everyone is committed to delivering. It gives senior management awareness of the grass-root issues, it enables course correction decisions at the senior levels, it exposes weakness and risk. It should carry action statements within the document that serve as a mini-version of the brand plan. We break it into two sections, to show both the consumption performance (market share) and the shipment performance (sales). And finally, it gives everyone a sense that the brand team has full control of what’s happening on delivering the plan.

Your monthly report should answer the following CONSUMPTION questions:

  1. What’s the one-line story that captures what’s happening on the brand? This is your elevator speech for the CEO.
  2. What’s the dollar, tonnage or unit share, on a 4 week, 12 week and YTD basis? Focus on the share that the company uses–it can vary. Having all 3 time breaks allows people to see the trends.
  3. How’s the brand doing vs year ago, prior periods, vs the category or vs plan for the year? Speak in terms of both % and share point changes. Theory of relativity allows you to tell the story better.
  4. What’s the competition doing? Trends in the consumption, tracking results related to their brand funnel or potential action that’s rumoured in the marketplace.
  5. What are the top 3 drivers of the brand for the month or year? It can be a combination of consumption trends (sku, regions, channel, account, flavour etc), beneath the surface Brand Funnel scores, program results that are contributing to share, competitive moves. Explain how you’re going to continue these going forward.
  6. What are the 3 inhibitors and what are you doing about it? These are things that are holding back the brand. Expose weaknesses you’re seeing in the programs, potential distribution gaps, competitive moves that are beating you, changes in consumer behaviour etc. Explain what you plan to do about it, giving the assurance that you are running the brand.
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Your monthly report should answer the following SHIPMENT questions:

  1. What’s the one-line story that captures what’s happening on the brand? This might be the story that you know you could back up, when confronted by the VP of sales in the same elevator. If it’s bad news, they will have to answer to the CEO.
  2. What’s the overall sales for the month, the quarter and how will it impact the year-end call? Senior management might adjust their own forecast or may change their short-term investment stance based on that performance.
  3. How are the sales by key account, by skus or by regions? Track on both the month and on a YTD basis. This highlights strength and exposes weakness.
  4. What are the top 3 drivers of the brand for the month or year? You want to highlight the accounts, skus or regions that are showing the most growth, explain why and tell what you’re going to do to keep these going.
  5. What are the 3 inhibitors and what are you doing about it? These are things that are holding back the brand. While the sales numbers are in the chart, start to explain the top line of what’s happening. Connect with the Account lead, ensuring they buy in to the statement you’re about to put. This gives you a chance to stay connected to what’s happening on each account. If your account people aren’t great at getting back to you, saying “I’m about to write a monthly report for the President and I want to know what’s going on at your account”. They’ll get back to you. Also, you need answers in the report to show that you are trying to get as much out of the brand as you can. Both short and long-term.
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Digging In

As you are analyzing the mounds of data in front of you, you want to dig in everywhere that you can.

  • Start at the 4 week share for the brand overall, compare it to the 12-week, then the 52 week and see the major trend. This is the start of the story. Dig deeper on regions, channels and skus, figuring out the relative differences you start to see–either on the overall share basis (development index) or on the overall growth rate. Do the same with major competitors. That should give you the basis of your 4-week story and you can begin the document.
  • You next want to focus on the performance for the overall year. With both consumption and share, you want to give management a good forecast on what you think will happen. This can be in consultation with sales and your demand teams. The story has to be consistently told and shared with the senior leaders. If they sense a disconnect, it will look bad on you.
  • If you have good tracking studies, dig in on program tracking (advertising, sampling, in-store, professional recommendations etc) any brand funnel tracking (awareness, trial, repeat, U&A) that can support what’s happening on the consumption and shipments.
  • Drivers and Inhibitors are things that are happening in the market, not things that could happen. Ideally, they should match up to the Annual Brand Plan and the objectives on the brand. Think of these monthly reports like 1/12th of your brand plan–not only highlighting how the brand is doing, but what you are willing to do about it.
  • Keep it all on one page, forcing your writing style to be more direct. A senior leader should be able to digest it in 10 minutes.

When I was an Assistant Brand Manager (ABM), I dreaded doing the monthly report. It was a chore that cut into my life. I always wondered if anyone read them. I was awful at the beginning and then became a master of the report. I kept thinking if I can just get promoted to Brand Manager, I’ll no longer have to do them. But as I made it up to the VP level, I read them in detail, even sending back questions for each brand. Then, I started to do my own version of the report for the President. I dug in as I had at the ABM level and crafted the story. Not only did it project a sense of control to my boss, it also allowed me to sleep better because it gave me the sense that I knew what was going on.

Brand Dashboard

There is tremendous value in setting up a Brand Dashboard across your business.  You should be looking at brand wealth indicators such as Sales, Market Share, Margins, but you should also be looking at brand health scores such as brand funnel data (awareness, trial), program performance scores (advertising tracking) and distribution scores. Here is the example we use for most brands, but it really does matter on the key indicators for your brand.

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Here’s our training workshop we run on creating a Business Review for your brand:

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

 

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Ritz-Carlton: Meeting the “unexpressed” needs of guests

 

 

Impeccable service separates Ritz-Carlton

Ritz-Carlton does a lot of things right to earn the high prices they are able to charge–the best locations, beautiful rooms, nice beds and great meals. But in reality, every luxury hotel has to deliver against these or they’ll be quickly out of business. Recognizing that any great brand has to be better, different or cheaper to win, Ritz-Carlton focuses their attention on impeccable service standards to separate themselves from other Hotels. What Ritz-Carlton has done so well is operationalize it so that culture and brand are one.RitzCarlton.svg

I was lucky enough to be able to attend the Ritz-Carlton Training session, and as a Brand Leader, the thing that struck me was the idea of meeting the “unexpressed” needs of guests. As highly paid Marketers, even with mounds of research, we still struggle to figure out what our consumers want, yet Ritz-Carlton has created a culture where bartenders, bellhops and front desk clerks instinctively meet these “unexpressed needs”. Employees carry around note pads and record the expressed and unexpressed needs of every guest and then they use their instincts to try to surprise and delight these guests.

Employees are fully empowered to create unique, memorable and personal experiences for our guests. Unique means doing something that helps to separate Ritz-Carlton from other hotels, memorable forces the staff to do something that truly stands out. And personal is defined as people doing things for other people. Isn’t that what marketers do? So what’s getting in our way?

They bake it right into the Ritz-Carlton culture

The phrase that Ritz-Carlton uses with their staff is “Radar is on and Antenna is Up” so that everyone can be looking for the unexpressed needs. These could be small wins that delight consumers in a big way:

  • A couple arrives at the hotel, wife is six months pregnant. Normal service would be to observe and do nothing–at best help with the bags. But at Ritz-Carlton, antenna up means they get a special pillow for sleeping and alcohol free sparkling cider instead of champagne.
  • A business guest who was staying at a hotel for 4 weeks and the staff printed up business cards with the guest name, hotel address and phone number so that he could give them out during his stay.

But like any hotel, things do go wrong. The staff is encouraged to use these moments to not only address the problem and fix it but also try to surprise and delight guests turning a problem into a potential wow moment. With everyone’s antenna’s up, when a problem does arise they quickly brainstorm and use everyone’s input.

  • A guest who had just left the hotel called to say that their son had left his stuffed giraffe in the room. The boy could not stop crying.2012-05-17-Joshiepic5 The only thing these distraught parents could think of to tell their son, is that the giraffe was staying on the vacation a little longer. So the staff, found the giraffe and overnighted it to the boy. Most luxury hotels would have done that. But that was not enough for Ritz-Carlton. Knowing what the Mom had told their son about staying on a bit longer, the staff also included a photo album of the giraffe enjoying his extra stay, including photos of the giraffe sitting by the pool, in the spa with cucumbers on his eyes, and laying out on the beach. It’s not that the album would make the boy excited, because he was excited just to have his favorite giraffe back. But imagine how the parents felt and the signal it sends to them about the Ritz-Carlton staff and how many friends they may share that story with.
  • An activity coordinator noticed that one of them had a real passion for ballet. Over the week, the activity coordinator even came in before her shift every day to give the girl a private ballet class. She wanted to do something special for the young guest, and decided to teach her a special dance for her parents. On their last day, she arranged for a performance at the Jazz Club, with special music and lighting for the performance. The couple was very grateful and could not believe how much love and passion the activity coordinator had put into making their daughter’s stay so memorable. To complete the experience, they gave the guests a CD with pictures and videos of their daughter’s performance so they could share it with family and friends on their return home

To inspire each other, everyone at Ritz-Carlton goes through a daily line up where they share wow stories, both local stories and stories from other hotels around the world. This line up keeps everyone in line, but it also keeps people fully engaged. Harvard did a study on Employee Engagement, stating that the average company had 29% of their employees who were fully engaged and they labelled this group as the Super Stars. Using the same criteria, Ritz-Carlton has 92% of their staff considered fully engaged. No wonder they are able to win so many service awards and no wonder they can create such an experience for their consumers. They’ve fully created a culture that now defines the brand.

So what can brand leaders learn from Ritz-Carlton?

  1. How can marketers challenge themselves to meet the unexpressed needs of guests? As Henry Ford said: “If I had asked people what they wanted, they would have said faster horses.” So what’s getting in your way? Are you over-thinking things? Are you too worried about the short-term results that you’re not even seeing or hearing the unexpressed needs? Are you so analytical that you need to see the data first and never really reach for your instincts which might challenge the data or even fill in the missing gaps in the data?0da472d
  2. How do you get your antenna’s up so that you and your team are always watching, listening and thinking? As you run from meeting to meeting, filling in forecasting templates and spending evenings pretty-ing up your presentation for senior leaders, how many times a week do you talk to consumers, how many times do you walk into a store or what social media tools do you monitor and listen to. Do you ever sit with customer service for an afternoon? Do you read through the complaints? And while it’s great that you do this once in a while, how do you operationalize it with your team. Can you set aside time so that you’re doing regular store visits or a quick brainstorm on observations once a week.
  3. How can Marketers push ourselves to wow the Consumer? The Ritz-Carlton staff is constantly trying to wow their guests, in either a small or big way believing that both make a difference. Are you pushing yourself to surprise your consumer? Are you trying to wow your consumer? Are you rejecting OK work to force everyone to reach for Great? Do you have a standard for the work that exceeds that of your consumer, after all if you don’t love the work then how do you expect your consumer to love your brand?

Do something this week that meets the unexpressed needs of a Customer just to see what it feels like. It might feel pretty damn powerful.

 

To read about how to create a Beloved Brand, click on the presentation below:

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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Is the Bose brand considered high quality or low quality?

 

bose-logo-vectorAmong the masses, Bose is one of the most respected, trusted and beloved brands when it comes to audio speakers and headphones.  That’s what their core target market would say. But to serious Audiophiles, with a discerning ear, Bose is total crap, with inferior technology, shabby production standards and resulting poor value. This might be the equivalent about asking a Foodie what they think of Morton’s Steakhouse or Ruth’s Chris.

Bose has a great word of mouth reputation. I remember when I first heard of Bose, it was a guy at work, who seemed to know more than I did say definitively “Bose are the best speakers you can buy”. I immediately believed this to be true and have felt that way ever since. I proudly own Bose headphones, a Bose docking station and Bose speakers in my car. I am a highly satisfied Bose fan.

I wanted Bose Speakers for my TV, having drooled over the idea for years. So I went into a Bose store, listened to a few different options and they all sounded amazing. So I looked on the Bose box, and there was no mention of Watts at all or really anything. My first thought was “wow, Bose is just such a great brand, they don’t really need to get into those tiny details like watts”. But I wanted to compare brands just to ensure I was spending good money. So I went on-line and here’s the Bose specs: still nothing.

 

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That brings us to The Bose philosophy: Unlike other audio product manufacturers, Bose does not publish specifications relating to the measured electrical and objective acoustic performance of its products. This reluctance to publish information links back to the classic Amar Bose paper presented in 1968 “On the Design, Measurement and Evaluation of Loudspeakers”. In the paper, Bose rejects these measurements in favor of “more meaningful measurement and evaluation procedures”, and considers the human experience the best measure of performance.

For Bose, sound is an experience, not a statistic. Bose spends all their effort and dollars on perfecting the in-store sound demo so they can show off Bose’s great sound quality and let consumers be the judge of their sound.  And yet it’s arguably tough for the average ear to distinguish. Bose invests a lot of money into their own retail stores as well as the store-in-store concepts. That way, it can control the experience the consumer gets with its products–ensuring the consumers hear Bose at it’s best.

Bose has figured out how to make their brand work to their advantage–the proof is in the sound you hear in the store. There’s a certain magic that happens in store when listening to the Bose stereo system. Despite what Audiophiles say, consumer feedback from the masses is definitively in favour of Bose with very high scores. And in a most recent poll, Bose is the #3 trusted brand in Consumer Electronics, so they must be doing something right. It’s tough for consumers to separate Product from Brand, even a brand like Apple has had success in this confusion where consumers think Apple has “great products”. To the masses, Bose is a great brand and has great products.

Is Bose a beloved or hated brand? You be the judge.  

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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In advertising, what comes first: the MEDIA choice or the CREATIVE idea?

Of course the consumer always comes first. However, as you begin the advertising process, Brand Leaders need to figure out whether the creative determines the media choice you make or the media choice helps frame the creative. When I started in marketing, way back in the mid 90s, life was a little simpler because the media and the creative were both under one agency roof. The meetings were simple: you’d see your various TV script options, give some feedback and then the room would go silent and the account person would say “now let’s look at the media plan” and the media person would take you through a 15 page presentation on where else the idea of your TV script could go. You would see some magazine, OOH and even some sampling idea. Back then, there was no internet advertising yet.

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Then one day, our media folks from our agency were spun off, had a new name, moved offices and had a new President. It now just meant we had two presentations and the Brand Leader now had to make sense of things and try to piece it together. About a year into that new relationship, I was sitting there confused and asked the question: “So what comes first, the media choice or the creative idea?” The room went silent for about 5 minutes. Then of course both sides talked over each other, both saying it was them that came first.  

All Marketing Execution has to do something to the brand–getting the consumer to think, act or feel differently about your brand. Media is an investment against your strategy and creative is an expression of your strategy. Both media and creative are only useful if they connect with consumers. Great advertising must connect through very insightful creative that expresses the brand’s positioning and told in a way that matters to those who care the most. Great advertising must be placed within the consumers’ life where it will capture their attention and motivate them in the expressed desired way to meet the strategy. So really, the consumer comes first and strategy comes second. Media and creative need to work to jointly capture the consumer and deliver the strategy.  

With separate agencies, the problem now rests with Brand Leaders to figure it out. While one could theoretically argue that if the Creative Idea of the advertising is so big, it should work in every medium. That’s just not always true in reality. Some ideas just work better in certain mediums. Yet the media people could also theoretically argue that if you go for the most efficient and effective media option, the media will do the work for you. That’s also not true. The best overall advertising should work focus on what has the most impact and what has the highest efficiency.  

Here’s a solution for Brand Leaders 

The three questions you always need to keep in your head at all times: 1) where is your consumer 2) where is your brand and 3) how does the creative idea work? 

1.  Where is your consumer?

You should really understand who your consumer is, and who they are not. You need to make sure you understand the insights about them, because it’s those insights within your creative that allow you to connect with them. They’ll say “they get me”. You should always be mapping out a day in the life of your consumer. Get in their shoes and say “what does my consumer’s day look like and how will my message fit or interrupt their life?” Take a “be where they are approach” to your media. 

2.  Where is the Brand?

First thing you have to do is consider where your brand is on the Brand Love Curve where brands go from Indifferent to Like It to Love It and all the way to Beloved. At INDIFFERENT, it’s about announcement style such as mass media, LIKE IT becomes about separating yourself from the competition while LOVE IT and BELOVED you’ll start to see the growing importance of event marketing to core users or social media as a badge of honor to share with others.

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3.  How does the Creative work? (The ABC’S)

The best advertising should draw ATTENTION, be about the BRAND, COMMUNICATE the main message and STICK in the consumers head long beyond the ad.

  • Attention: You have to get noticed in a crowded world of advertising. Consumers see 7,000 brand messages per day, and will likely only engage in a few. If your brand doesn’t draw attention naturally, then you’ll have to force it into the limelight.
  • Branding: Ads that tell the story of the relationship between the consumer and the brand will link best. Even more powerful are ads that are from the consumers view of the brand. It’s not how much branding there is, but how close the brand fits to the climax of the ad.
  • Communication: Tapping into the truths of the consumer and the brand, helps you to tell the brand’s life story. Keep your story easy to understand. Communication is not just about what you say, but how you say it—because that says just as much.
  • Stickiness: Sticky ads help to build a consistent brand/consumer experience over time. In the end, brands are really about “consistency” of the promise you want to own. Brands have exist in the minds of the consumer. 
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In the reality of advertising, not every ad execution will be able to do all four of the ABC’S.  When I’m in the creative room, I try to think about which of the two ABC’S are the most critical to my strategy. If it is a new product, I want all four, but I have to have: Attention and Communication. If the brand is in a competitive battle I have to have Brand and Communication.  If the brand is a leader and beloved, I need to make sure the advertising is about the Brand and that it Sticks.   

What I recommend you do:

In a sense, you have to work the creative and media together. But that’s impossible. So what I do is hold off on making any media decisions until you see the creative idea and how it is expressed in a few media options. With all the potential media options now available, I ask for 3 executions for each creative option:

        1. Video version
        2. Billboard 
        3. Long Copy Print

Sounds simple, but here’s the logic. With those 3, I can now imagine how the advertising might work across all possible media options. 

  • The “Video” allows me to imagine how the creative would work for traditional 30-second TV ad, a 60-second movie theatre ad, 2 or 3 minute viral video for sharing or even a video you could put on a website.
  • The “Billboard” allows me to imagine how it would work with traditional media options such as out-of-home billboard, bus shelter, in-store poster, packaging copy and the back cover of a magazine.  Or if we want to look at digital, it could be a digital billboard, Facebook photo, website cover.
  • The “Long Print” allows me to imagine what how it might work with a print ad, side panel of packaging, brochures, public relations story-line,  social media feed or even a blog on your website.  

With 3 simple asks against each creative idea, it covers off most of the traditional media options, even covering the digital media. So now as the Brand Leader goes to their Media Agency, they will know how the creative idea would work against any of their recommendations. 

Obviously, we always recommend that you focus. So we’ll likely recommend a lead traditional media and a lead digital and lead social option. You need to make the most out of your limited resources of dollars, time, people and partnerships. However, if we want a creative idea to last 5 years, seeing it work across this many media options gives me a comfort that should I need that option, I know the creative idea will work.

The media math from a client’s view

While the media agency owns the media math that blows your mind, here is some simple client side media math. As clients, we have to make the most of our budgets. 

  • Your production budget should be around 5-10% of your overall advertising plan. If you have small budgets, that may creep up to 20%, but that’s it. Every time you do a new piece of creative, the production dollars go up and the media dollars go down. I’d recommend you focus on one main traditional media and have only one secondary option. This keeps your spend focused. 
  • When it comes to social media, keep in mind there is no free media options. Instead of financial capital, you are now exhausting people capital. Just like the traditional options, I would recommend one lead social media and one secondary focus. Do not try to be all things to all people.  
  • The other reason to focus is to ensure you do great executions and not just “ok”.  Pick the media that maximizes the power of the creative. Don’t exhaust the team by spreading them against too many activities.   
  • Allow 80 to 90% of your media spend be on the highly effective highly efficient media plan. That means 10-20% of your media spend can now go against high IMPACT creative ideas that you know will break through.  

Work with both the creative and media at the same time, figuring out what gives the highest return on your investment

 

To see a training presentation on getting Better Marketing Execution: 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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