1. Forget Brand Preference
Win the Brand Relevance Battle
DAVID A. AAKER
Vice Chairman, Prophet
Blog: davidaaker.com
BMA Chicago
October, 2012
Proprietary and confidential
Do not distribute

2. Brand Market
Relevance Dynamics
Brand Relevance 2

3. Asahi-Kirin Beer War
Brand Relevance 3

4. The Computer Industry
Minicomputers
Network Workstations
Graphic Workstations
Build to Order PCs
Brand Relevance 4

5. Customer Decision Process
Brand Relevance Brand Preference
Select Product Determine
Category or Brands Select Brand to Buy
Subcategory To Consider
SUV Audi BMW
BMW
Mercedes-Benz
Brand Relevance 5

6. Routes to Winning
Brand Preference Brand Relevance
Competitor Competitor
Brand Brand
Winning VS.
Means
Not Not
Preferred Considered
Brand Relevance 6

7. Innovation Continuum
Innovation Incremental Substantial Transformational
Offering Noticeable Impact New Category Game Changer
Enhancement On Brand Preference Or Subcategory
Online Shipping
CORNING Gorilla
Glass
Brand Relevance 7

8. Test—New Category/Subcategory?
Can we deliver?
Is there a “must have”?
Business worthwhile?
Legs?
Brand Relevance 8

9. The Pay Off
Brand Relevance 9

10. Transformational Innovation
Brand Relevance 10

11. The Pay Off
108 Business launches: Those creating new categories or subcategories:
• 14% of sample
• 38% of revenue
• 61% of profits
McKinsey Study: 1,000 firms, 40 years
• New entrants
• Return premium over average for their industry
• First year 13%
• 3% in fifth year
• 1 % in tenth year
New Product Success Correlated with Differentiation
Brand Relevance 11

12. Defining Categories/Subcategories
Applications
Shared Interest
Values that connect
Components to systems
Augmented
relationship
Brand Relevance 12

13. Create Barriers
Execute over the top
Continuously innovate
Nano Shuffle Touch iPad
Be the Exemplar
Branded differentiator
Brand Relevance 13

14. The Power of Branding Innovations
OuterStyle OuterStyle
Alpine Class Fill
Brand Relevance 14

15. Branded Feature
Brand Relevance 15

16. Branded Technology
Caterpillar ACERT
Emission Reducing Diesel Engine Technology
Brand Relevance 16

17. Branded Service
Brand Relevance 17

18. Branded Customer Interaction
Dell Community
StudioDell
Brand Relevance 18

19. “You do not merely want to be considered
just the best of the best,
You want to be considered the only one
who do what you do.”
Jerry Garcia, The Grateful Dead
Brand Relevance 19

20. Relevance Threat
Lose Brand Relevance
No Longer Make What Lose Energy Have Compelling
Customers Are Buying & Visibility Negative
Brand Relevance 20

21. Stick to Your Knitting
Brand Relevance 21

22. Parity
Brand Relevance 22

23. Reposition
Hunting,
fishing, Outdoors
camping
Brand Relevance 23

24. Reposition – “Products” to Delivering “Solutions”
The Solutions Journey
Starting
Point
Commodity Commodity Value Added Services System Integrated
+ Free Products Services/ Products
Services Products & Services
Products
Products Transition
Transition Solutions
Solutions
Deck Title Proprietary and confidential. Do not distribute. 24

25. Leapfrogging
Brand Relevance 25

26. Relevance Threat
Lose Brand Relevance
No Longer Make What Lose Energy Have Compelling
Customers Are Buying & Visibility Negative
Brand Relevance 26

27. The Decline of Brands
Brand Asset Valuator
•40,000 brands
•44 countries
•70 metrics
•15 years
Trustworthiness down 40% in 13 years
Quality perception down 24% in 14 years
Awareness down 20% in 13 years
Brand Relevance 27

28. Energy
Interesting/exciting
Involving/engaging
Innovative/dynamic
Passionate/enthusiastic
Brand Relevance 28

29. Extend the Brand
• Body Wash with Nutrium
• Facial Core Cleanser
• Antiperspirant & Deodorant
• Shampoo with Weightless Moisturizer
• Nutrium Beauty Bar
• Men & Care
$200M
1990
Brand Relevance 29

30. Avon--Branded Program
Raised $640 million since 1992
Educated 100 million women
Brand Relevance 30

31. Branded Energizers
NASCAR
Brand Relevance 31

32. Relevance Threat
Lose Brand Relevance
No Longer Make What Lose Energy Have Compelling
Customers Are Buying & Visibility Negative
Brand Relevance 32

33. Remove a Negative
Brand Relevance 33

34. Brand Market
Relevance Dynamics
Brand Relevance 34

35. Forget Brand Preference
Win the Brand Relevance Battle
DAVID A. AAKER
Vice Chairman, Prophet
Blog: davidaaker.com
BMA Chicago
October, 2012
Proprietary and confidential
Do not distribute