These 8 analytical principles will reshape the mind of every marketer

Posted on Posted in How to Guide for Marketers

[sg_popup id=”9″ event=”onload”][/sg_popup]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 assess your brand’s performance

Posted on Posted in How to Guide for Marketers

analyticsYou 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.    

The deep-dive business review

Too many marketers are not taking the time to dig in on the analytics. There is no value in having access to data if you are not using it. The best brand leaders can tell strategic stories through analytics.

  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.

10 great questions to review the marketplace:

  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? And, what are the significant open opportunities you can use to your advantage? And, 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. Assess 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?

10 probing questions to review the consumers:

  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? And, 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 review your channels

  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? And, 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?

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? And, 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? And, 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 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? And, 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 questions to summarize the analysis

  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 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.

Beloved Brands book

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

If you use Kobo, you can find Beloved Brands in over 30 markets using this link: https://lnkd.in/g7SzEh4

And if you are in India, you can use this link to order: https://lnkd.in/gDA5Aiw

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.

We think the best solutions are likely inside you already, but struggle to come out. Our unique playbook tools are the backbone of our workshops. We bring our challenging voice to help you make decisions and refine every potential idea.

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 brand 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.

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.

Our brand playbook methodology will challenge you to unlock future growth for your brand

  1. Our deep-dive assessment process will give you the knowledge of the issues facing your brand, so you can build a smart plan to unleash future growth.
  2. Find a winning brand positioning statement that motivates consumers to buy, and gives you a competitive advantage to drive future growth.
  3. Create a brand idea to capture the minds and hearts of consumers, while inspiring and focusing your team to deliver greatness on the brand’s behalf.
  4. Build a brand plan to help you make smart focused decisions, so you can organize, steer, and inspire your team towards higher growth.
  5. Advise on advertising, to find creative that drives branded breakthrough and use a motivating messaging to set up long-term brand growth.
  6. Our brand training program will make your brand leaders smarter, so you have added confidence in their performance to drive brand growth.

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

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

You have my personal promise to help you solve your brand building challenges. I will give you new thinking, so you can unlock future growth for your brand.

Graham Robertson signature

 

 

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

Posted on Posted in How to Guide for Marketers

 

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?

Posted on Posted in How to Guide for Marketers

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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Is the Bose brand considered high quality or low quality?

Posted on Posted in Beloved Brands in the Market

 

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”. And, 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. Finally, 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.

Bose Specs

 

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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.  

 

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.

Beloved Brands book

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

If you use Kobo, you can find Beloved Brands in over 30 markets using this link: https://lnkd.in/g7SzEh4

And if you are in India, you can use this link to order: https://lnkd.in/gDA5Aiw

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.

We think the best solutions are likely inside you already, but struggle to come out. Our unique playbook tools are the backbone of our workshops. We bring our challenging voice to help you make decisions and refine every potential idea.

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 brand 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.

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.

Our brand playbook methodology will challenge you to unlock future growth for your brand

  1. Our deep-dive assessment process will give you the knowledge of the issues facing your brand, so you can build a smart plan to unleash future growth.
  2. Find a winning brand positioning statement that motivates consumers to buy, and gives you a competitive advantage to drive future growth.
  3. Create a brand idea to capture the minds and hearts of consumers, while inspiring and focusing your team to deliver greatness on the brand’s behalf.
  4. Build a brand plan to help you make smart focused decisions, so you can organize, steer, and inspire your team towards higher growth.
  5. Advise on advertising, to find creative that drives branded breakthrough and use a motivating messaging to set up long-term brand growth.
  6. Our brand training program will make your brand leaders smarter, so you have added confidence in their performance to drive brand growth.

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

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

You have my personal promise to help you solve your brand building challenges. I will give you new thinking, so you can unlock future growth for your brand.

 

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

Posted on Posted in How to Guide for Marketers

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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Barbie is trying to inspire girls to believe that “you can be anything”

Posted on Posted in Beloved Brands in the Market

Barbie faced major declines

Barbie has been heavily criticized over the last few decades for projecting an unrealistic image for girls. Launched in 1959, Barbie was the blonde all-American dream, but a complete fiction that many believe to be doing more damage of the self confidence of girls. The modern Moms didn’t want their daughters playing with Barbie anymore. All of a sudden, Barbie sales declined 20% in 2012 to 2014. The brand needed to make a dramatic change.

Barbie took a dramatic step forward–even if just to catch up to where they should be–by launching new possibilities with realistic options for body type (curvy, tall and petite) and various ethnicities (seven skin tones) They needed to create a Barbie that Moms would think acceptable for their girls to play with. These moms wanted a good symbol for their daughters, not something unrealistic and unattainable. The new Barbie is a good first step.

 

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Next, the supporting Advertising for Barbie has gone viral with over 20 Million views. The ad starts by showing a young girls in situation as a College Professor, a Museum curator, a Veterinarian or a Soccer coach.  The supporting copy: “When a girl plays with Barbie, she imagines everything she can become.” with a bold tag-line:  YOU CAN BE ANYTHING. This is a great ad with a new message that should fit with the modern moms.

 

Barbie sales are up 8% this past holiday period, a good start to the turnaround. 

Here are five lessons for Brand Turnarounds

  1. Ensure the right people in place: Before even creating the plan, you need to get the right leadership talent in place. Talent, motivation, alignment. Mattel brought in new CEO last spring who reshuffled a lot of the executives in an effort to turn the business around.
  2. Look to close leaks on the Brand: Use brand funnel to assess, using leaky bucket tool to close leaks. Find out where the specific problems are coming from. Barbie has done a nice job in listening to their consumers, the moms who were rejecting the brand due to stereotypes.
  3. Cut the fat, re-invest: go through every investment decision, invest only in programs that give you an early break through win. Even faced with Sales declines, Mattel made a smart move to cut costs by 10% to drive profits back into the business. It is hard to do a turnaround while the profit keeps falling.
  4. 3-stage plan: In stage 1, find early/obvious win, halts slide, helps motivation. In stage 2, invest behind new positioning/new plan, focused decisions, take risks. In stage 3, make adjustments to plan, build innovation behind new ideas that fit plan. Barbie started talking about the plan a year ago, listening to consumers and preparing for the big launch. So far, they’ve stemmed the decline, but now they need to build a plan for the next 3-5 years that grows this business.
  5. Motivating a demotivated team: Losing can be contagious to a culture/team. Recognize wins to fuel performance driven culture. People on the team needed new leadership and needed room to take chances with this iconic brand.

We run workshops on Strategic Thinking that looks at brand strategy including competitive war games, focusing on your core strength, building connectivity with consumers and situational strategy.

 

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.

custom_business_card_pile_15837We 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 use brand funnel data to assess your brand’s health

Posted on Posted in How to Guide for Marketers

A classic brand funnel would measure awareness, familiar, consider, purchase, repeat and loyal. They tell you where you are now, and when analyzed with intelligence, they can provide hints as to  where you can go next. 

Brand Funnels can help you determine where your brand sits on the Brand Love Curve. I created the brand love curve, which outlines how consumers move through five stages: unknown, indifferent, like it, love it, and onto the beloved brand status. Indifferent brands have very skinny brand funnels with low awareness, low purchase and negligible repeat and loyalty. Brands that are liked but not loved, have high awareness and sales, without an emotional connection, they almost have no loyalty. And finally, at the beloved brands had the most robust brand funnels, with strong awareness, purchase, repeat and loyalty scores. 

How to analyze your brand using brand funnels

Every brand should understand the details of its brand funnel, the best tool for measuring your brand’s underlying health. It is the equivalent to knowing your blood pressure or cholesterol scores. A classic brand funnel should measure awareness, familiarity, consideration, purchase, repeat, and loyalty. At the very least, you should measure awareness, purchase, and repeat. It is not just about understanding the absolute scores on the funnel but rather the ratios that explain how good of a job you are doing in moving consumers from one stage of the funnel to the next. 

I will show you how the robustness of your brand’s funnel explains where your brand sits on the brand love curve. The broader the funnel, the better connected your brand is with consumers.


Absolute brand funnel scores

  1. On the chart above, the first thing to do is look at the absolute brand funnel scores. There are many types of comparisons you can do, whether you compare to last year, competitors, or category norms. 
  2. Then look at the brand funnel ratios, which is the percentage score for how well your brand can convert consumers from one stage of the funnel to the next. To create ratios, divide the absolute score by the score above it on the funnel. In the example above, take the familiar score of 87% and divide it by the awareness score of 93% to determine a conversion ratio of 91%. This means 91% of aware consumers are familiar
  3. For the chart below, lay out the absolute scores and the ratios in a horizontal way to allow a comparison. You will notice these are the same scores as “A” and “B” in the previous chart. The crucial numbers for Gray’s Cookies are the ratios of 91%, 94%, 77%, 25%, and 12% at the top of the chart. Then bring in a close competitor (Devon’s) with their absolute and ratios scores to allow a direct comparison.
  4. Then find the ratio gaps by subtracting the competitor’s ratio scores from your brand’s ratio scores. In the example, the first ratio gap is -7% ratio gap (91% – 98%) which means Devon’s does a 7% better job in converting consumers from awareness to familiar than Gray’s Cookies. 
  5. As you create ratio gaps along the bottom, you can see where your ratio is either stronger or weaker than the comparison brand. Finally, start analyzing the significant gaps between the two brands and tell a strategic story to explain each gap. Looking at the example, you can see Gray’s and Devon’s have similar scores at the top part of the funnel, but Gray’s starts to show real weakness (-23% and -51% gap) as it moves to repeat and loyalty. You need to address and fix these gaps with your brand plan. 

Brand funnel ratios

The Brand Love Curve

It takes a strategic mind to figure out brand love.

For new brands, they were completely “unknown” to consumers. Unless there were genuinely compelling messages, consumers would walk past without even looking. To achieve some success, the priority for these brands is to get noticed within the clutter of the market.  

At the “indifferent” stage, consumers feel O.K. about the brand, similar to how they usually feel about commodities, like fruit and vegetables. These brands satisfy the consumer’s basic needs. Consumers will only buy the brand when it is on sale, but switch back to their other brand choice when it is not. Make your brand more than just a commodity. Brands need to be better, different, or cheaper. Otherwise, they will not be around for long, and you waste your investment. 

Brands that reach the “like it” stage experience the first sign of business success. Their consumers see the brand as a logical, functional, and smart choice. However, the lack of any emotional connection leaves the purchase up to chance. Consumers will still switch brands randomly. Brands at the like it stage stress the product performance so much they forget to trigger any emotions. 

Brands at the “love it” stage start to see more emotionally engaged consumers. The rule of love you must follow: Consumers must love the brand before you can tell consumers you love them. Consumers see the brand as a favorite choice, usually connected to a favorite part of their day. They are loyal and build the brand into a routine. These brands must also find a way to demonstrate their love toward consumers and continue to tighten the bond with their most loyal brand lovers. 

The “beloved brand” stage is where the brand becomes iconic, with a core base of brand lovers who cherish and defend the brand. These consumers see the brand as a personal choice, a badge they proudly hold in their hand or wear on their feet. At the beloved stage, the brands must create magical experiences that inspire brand lovers to share with their friends.

Matching consumer analysis to the brand love curve

You can begin using your consumer tracking, brand funnel, market share, and the voice of the consumer to help explain where your brand sits on the brand love curve.

  • Indifferent brands have skinny funnels, starting with inferior awareness scores. Consumers have little to no opinion. Concerning performance, you will see low sales and poor margins. Your brand plan for indifferent brands should increase awareness and consideration to kickstart the funnel. 
  • The like it brands have funnels that are solid at the top but quickly narrow at the purchase stage. Consumers see these brands as ordinary and purchase only on a deal. When they are not advertised or on sale, sales fall off dramatically. These brands need to close potential leaks to build a loyal following behind happy experiences.
  • The love it brands have a reasonably robust funnel but may have a smaller leak at loyal. They have stronger growth and margins. Look for ways to feed the love and turn repeat purchases into a ritual or routine. 
  • The beloved brands have the most robust brand funnels and positive consumer views. These brands should continuously track their funnel and attack any weaknesses before competitors exploit them. Also, it is time to leverage that brand love to influence others.

How consumer strategies match up to the brand love curve

Five major brand strategies help move your brand from one stage of the brand love curve to the next.

  • For unknown brands, the strategic focus should be to stand out so consumers will notice the brand within a crowded brand world, where they see an estimated 5,000 brand messages per day. 
  • For indifferent brands, the strategy must establish the brand in the consumer’s mind so they can see a clear point of difference over their current brand choice. 
  • At the like it stage, the strategy is to separate the brand from the pack, creating happy experiences that build a trusted following over time. Only after they trust the brand, they begin to open up.
  • At the love it stage, the focus shifts tightening the bond with the most loyal brand fans. 
  • At the beloved stage, the strategic challenge is to create outspoken, loyal fans who are willing to whisper to their friends on the brand’s behalf.
Marketing Training

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You will find this type of thinking in my brand playbooks, Beloved Brands and B2B Brands

Learn how to think, define, plan, execute and analyze

  • You will find strategic thinking models and examples for each of the four strategic thinking methods, looking at core strength, competitive, consumer, and situational strategies. 
  • To define the brand, I will provide a tool for writing a brand positioning statement as well as a consumer profile and a consumer benefits ladder. I have created lists of potential functional and emotional benefits to kickstart your thinking on brand positioning. We explore the step-by-step process to come up with your brand idea and bring it all together with a tool for writing the ideal brand concept. 
  • For brand plans, I provide formats for a long-range brand strategy roadmap and the annual brand plan with definitions for each planning element. From there, I show how to build a brand execution plan that includes the creative brief, innovation process, and sales plan. I provide tools for how to create a brand calendar, and specific project plans. 
  • To grow your brand, I show how to make smart decisions on marketing execution around creative advertising and media choices. When it comes time for the analytics, 
  • I provide all the analytical tools you need to write a deep-dive business review, looking at the marketplace, consumer, channels, competitors and the brand. Write everything so that it is easy to follow and implement for your brand.

You will learn everything you need to know so you can run your brand. My brand promise is to help make you smarter so you can realize your full potential.

You can find Beloved Brands on Amazon, Rakuten Kobo and Apple Books

How to write a monthly brand report to track performance

Posted on Posted in How to Guide for Marketers

In a world of big data and analytics, every brand should have a monthly report to track how the brand is doing through the course of the year. 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 the brand. The 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 serves as a mini-version of the brand plan. And finally, it gives everyone a sense that the brand team has full control of what’s happening on delivering the plan.

Consumption section

The 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 rumored 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, flavor 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 behavior etc. Explain what you plan to do about it, giving the assurance that you are running the brand.

Sales section

The 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 the 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 on the chart, start to explain the top line of what’s happening. Connect with the Account lead, ensuring they buy into 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.

Digging in on the data

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 of 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.

Writing the report

When I was an Assistant Brand Manager, I dreaded having to do the Monthly Report. It was a chore that cut into my life. It took all day to find the data. Even all night. I always wondered if anyone would ever read my report. And, I was awful on my first few attempts. I kept thinking if I can just get promoted to Brand Manager, I will no longer have to ever write a Monthly Report ever again. After a year, I became a master of the report. When I did get promoted to Brand Manager, I re-wrote it for my boss. 

And when I made it up to the VP level, I read everyone’s report in detail, even sending back inquiry questions for each of the 15 brands I had under me. I started to do my own version of the report for the regional President. I dug in the same way I had at the junior levels and crafted the story. Not only did it project a sense of control over my business, it allowed me to sleep better because I knew what was going on with my business. I actually was in control.

I always believe, “You run the brand. Don’t let the brand run you.”

At Beloved Brands, we help brand leaders realize their full potential

This type of thinking is in my books, Beloved Brands and B2B Brands

Learn how to think, define, plan, execute and analyze

  • You will find strategic thinking models and examples for each of the four strategic thinking methods, looking at core strength, competitive, consumer, and situational strategies. 
  • To define the brand, I will provide a tool for writing a brand positioning statement as well as a consumer profile and a consumer benefits ladder. I have created lists of potential functional and emotional benefits to kickstart your thinking on brand positioning. We explore the step-by-step process to come up with your brand idea and bring it all together with a tool for writing the ideal brand concept. 
  • For brand plans, I provide formats for a long-range brand strategy roadmap and the annual brand plan with definitions for each planning element. From there, I show how to build a brand execution plan that includes the creative brief, innovation process, and sales plan. I provide tools for how to create a brand calendar, and specific project plans. 
  • To grow your brand, I show how to make smart decisions on marketing execution around creative advertising and media choices. When it comes time for the analytics, 
  • I provide all the analytical tools you need to write a deep-dive business review, looking at the marketplace, consumer, channels, competitors and the brand. Write everything so that it is easy to follow and implement for your brand.

You will learn everything you need to know so you can run your brand. My brand promise is to help make you smarter so you can realize your full potential.

You can find Beloved Brands on Amazon, Rakuten Kobo and Apple Books