SlideShare une entreprise Scribd logo
1  sur  11
Télécharger pour lire hors ligne
Branding Coherence
Achieving consistency in a world of
complexity
White paper | August 2012
Shikatani Lacroix is a leading branding and design firm located in
Toronto, Canada. The company wins commissions from all around
the world, across CPG, retail and service industries, helping
clients achieve success within their operating markets. It does
this by enabling its clients’ brands to better connect with
consumers through a variety of core services including corporate
identity, naming and communication, brand experience,
packaging, retail, wayfinding and product design.
About the Author
Jean-Pierre Lacroix, R.G.D., President and Founder of
Shikatani Lacroix
Jean-Pierre (JP) Lacroix provides leadership and direction to his
firm, which was founded in 1990. He has spent the last 30 years
helping organizations better connect their brands with
consumers in ways that impact the overall performance of their
business. Mr. Lacroix was the first to coin and trademark the
statement “The Blink Factor” in 1990, which today is a
cornerstone principle of how brands succeed in the
marketplace. JP has authored several papers, has been quoted
in numerous branding and design articles, and in 2001 he co-
authored the book “The Business of Graphic Design” which has
sold over 10,000 copies. JP can be reached at
jplacroix@sld.com and you can follow his thought leadership
webinars at: www.sldesignlounge.com.
Other Articles and Books
Belonging Experiences: Designing Engaged Brands
Business of Graphic Design
White paper | August 2012 | Brand Coherence | 1
Yesterday’s marketing speak
Buzz marketing. Bricks and clicks. Shopper marketing. There
is not a month that goes by that a new marketing term isn’t
being introduced or featured as the next best thing for
organizations. Most of these, however, focus on marketing and
not on the holistic impact of brand alignment required to
ensure a higher level of brand engagement. The
discussion in marketing boardrooms for the past
several years has focused around a theme that
allows companies to create loyal customers through
an integrated brand engagement strategy:
multichannel marketing. My curiosity piqued when
multichannel marketing was first mentioned and my
search on Google took me to an article by ClickZ in
2003, which introduced the concept as part of its
impact on cannibalizing conventional media due the
growth of online marketing.
Today, multichannel has evolved. It consists of leveraging
many different marketing channels, such as a retail store, a
web site, a mail-order catalogue, or direct, personal
communications by letter, email or text message, to reach
customers. The premise of the concept was to make it
convenient for consumers to buy from retailers in whatever
way is most appropriate to them.
White paper | August 2012 | Brand Coherence | 2
The level of complexity in a global marketplace, and the
degree of sophistication in its response, has significantly
accelerated since multichannel marketing was first introduced.
This has allowed companies to create a finer, targeted
approach as they engage through certain channels, various
demographic segments of the market, or different socio-
economic groups of consumers.
Although there remains a high level of interest in and usage of
multichannel marketing, the concept as an overall approach
lacks depth in global infrastructure and brand alignment to
truly deliver long-term results. To meet these requirements we
have defined a new marketing approach: brand coherence.
The commoditization law of physics
Similar to a gravitational force, industries, irrespective of the
sector, cannot easily overcome the pull of commoditization.
As categories mature, and innovation becomes a riskier
business, features that differentiate one product from another
are reduced to table stakes and organizations must rethink
their value proposition and portfolio structure.
As a recent Booz&Co article by Samrat Sharma confirmed,
scale and capabilities remain important for emerging markets
but not so in mature, established countries. The mature
market opportunity of guaranteed growth by marketing to the
middle class, currently a shrinking opportunity, or finding
greater efficiencies is no longer a lucrative, sustainable
business. Many organizations are being forced to rethink their
go-to-market approaches.
White paper | August 2012 | Brand Coherence | 3
“Our recent
research has
demonstrated that
companies with
greater portfolio
coherence (that is,
those whose
business units have
mutually reinforcing
capabilities that
distinguish the
company as a
whole) outperform
their peers in terms
of operating
margin.”
Traci Entel, Booz&Co.,
presentation on The Power of
the Coherence Premium
The emergence of brand coherence
Giants within their industries, Kraft, IBM, and PG are realizing
that being big is not necessarily better and have started to
review their portfolio structure to identify competencies that
they can better leverage.
In 2011, Kraft announced the formation of two divisions, one
that will be focused on the global snack foods business and
the other on North American grocery businesses like
beverages and cheese. Based on current revenues, the snacks
business will comprise about two-thirds of the current Kraft
business and it will have considerably more growth than the
more stable (yet slow-growing) grocery businesses.
Kraft’s strategy follows other large CPG companies such as
PepsiCo which, in late 1995, split its restaurant and food/
beverage business into two separate companies and then in
2010, split its beverage from its food brands into two separate
business units.
In both of these cases, the organizations have structured their
businesses to allow for greater focus on their core capabilities,
allowing each to gain growth by filling the white spaces and
finding greater operational efficiencies. More importantly, by
separating companies along competencies and evolving
capabilities beyond operational efficiencies, organizations
have realized greater market share growth and revenues. This
alignment behind very focused value propositions is one of
the fundamental principles in creating strong brand
coherence.
White paper | August 2012 | Brand Coherence | 4
Brand coherence is the end result of aligning all of the brand’s
moments of truth and offerings behind one central value
proposition which is clearly articulated as part of a brand card.
Allowing each facet of the organization – manufacturing,
distribution, marketing, operations, finance – to clearly
understand the value of the brand and
align its culture to deliver the brand’s
promise ensures strong brand
coherence.
To better understand the fundamental
principles of brand coherence, we
need to define what supports its
momentum and direction. We have
mirrored this coherence model and its
principles to an infinity loop that starts
and ends with Brand Equity. The loop
consists of two equal interconnection
loops, one which establishes the
foundation for Brand Equity while the
other allows this equity to be personified and executed in a
continuous never ending process with each marketing
element of the Brand Coherence Loop helping build
consistent brand equity.
White paper | August 2012 | Brand Coherence | 5
Brand Coherence Infinity Loop
Foundation
Momentum
In order to ensure the brand has a coherent strategy, it must
start by clearly understanding its core equities that support
the brand pillars, or more importantly, the timeless challenge
the brand must overcome for itself and its core target group.
Based on clearly defined brand pillars that help support a
brand’s long-term equities, the loop takes into account brand
value – the one key attribute that allows the brand to
differentiate itself from competitors Brand value is anchored
in both cognitive and emotive dimensions.
Leveraging a clearly defined brand value, the loop takes into
consideration the brand persona in addition to the position,
mission and vision. Ultimately these steps within the Brand
Coherence Infinity Loop lead back to Brand Equity, which is
summarized in a single brand essence statement.
Only once the Brand Equity is clearly defined can the brand
craft an effective brand identity that assists the various
supporting elements of the brand. From the development of a
strong and differentiated brand identity, which would include
a corporate identity, company culture, supporting proof-
points and a visual manifestation of the brand, the process
would move to the next level, namely the brand portfolio.
This stage would consist of clearly aligning the various
offerings within the portfolio to the Brand Equity, allowing
either a restructuring of the portfolio or the elimination of
certain products that do not support its value proposition.
White paper | August 2012 | Brand Coherence | 6
Only when the brand identity and portfolio have been clearly
defined can the brand consider marketing and support
initiatives, such as social media, online, and offline marketing
activities. This leads to the in-store presence, better known as
shopper marketing. Each one of the elements of the Brand
Coherence Infinity Loop helps build and support the brand’s
equity.
In isolation, each of these elements has
little power to grow brand equity, but
combined they have the cumulative impact
to shape the brand in a highly competitive
marketplace. Brand coherence requires
that each element of the brand equity is
supported and aligned to a single and
compelling value proposition and essence.
Only when all of these elements work in
unison can the marketing initiatives sustain
growth and margin for the brand.
White paper | August 2012 | Brand Coherence | 7
The two sides of the brand coherence pendulum
For the past 37 years, I have witnessed and been party to
organizations that align all of their divisions behind one
central value proposition, which results in significant market
clout and efficiencies that allow for a higher margin and return
on investments.
Most large multinational companies have implemented such
initiatives. Today, this is the trend for the banking, technology
and consumer packaged goods industry. In the majority of
cases, the integration behind one brand message and value
proposition is primarily driven by the need to consolidate the
various business acquisitions that fueled the organization’s
growth.
However, once organizations have optimized their operational
efficiencies and market share consolidation, they tend to
explore counter coherent strategies that focus on regional
nuances and local marketing initiatives. The risk and challenge
for these brands is to ensure that their market-share growth
initiatives align with a coherent brand strategy that ensures a
strong foundation and minimizes the risk of brand equity
erosion. We have identified a branding model that goes
beyond finding efficiencies to clearly identify the different
factors that support a coherent strategy.
White paper | August 2012 | Brand Coherence | 8
Conclusion
As industries mature and the differentiation between offerings
narrow, organizations are reconsidering the impact and cost
of divergent branding strategies. In addition, as brands
become global, there will be greater pressure in defining what
makes the brand unique across cultures, countries and
languages. Defining a Brand Coherent strategy will enable
organizations to evolve their need for consistency and
efficiency by linking each of their initiatives towards building
stronger brand equity. Ultimately, Brand Coherence is about
the power of focus and the ability to leverage scale through a
consistent and highly integrated branding strategy.
The Brand Coherence Infinity Loop will also allow
organizations to evolve their multi-channel strategies to
ensure that their products remain relevant, meaningful and
differentiated, irrespective of the individual brand’s moments
of truth. The process must start with a strong foundation, the
reason for the brand’s existence, and be supported by the
momentum to enable marketing and executional initiatives. A
well-defined brand position and essence that is poorly
executed has the same inherit long-term drawbacks as a
poorly positioned brand that is well executed. Neither is a
viable option for sustainable growth, greater margin and
brand affinity.
White paper | August 2012 | Brand Coherence | 9
For more information, contact:
Jean-Pierre Lacroix, President
Shikatani Lacroix
387 Richmond Street East
Toronto, Ontario
M5A 1P6
Telephone: 416-367-1999
Email: jplacroix@sld.com
White paper | August 2012 | Brand Coherence | 10

Contenu connexe

Tendances

Brand Equity & Its Measurement
Brand Equity & Its MeasurementBrand Equity & Its Measurement
Brand Equity & Its Measurementsaurabh
 
Corporate Branding That Sticks Slideshare
Corporate Branding That Sticks SlideshareCorporate Branding That Sticks Slideshare
Corporate Branding That Sticks SlideshareBianca Cawthorne
 
Strategic Naming For Merging Healthcare Companies
Strategic Naming For Merging Healthcare CompaniesStrategic Naming For Merging Healthcare Companies
Strategic Naming For Merging Healthcare CompaniesFullSurge
 
Building Relentlessly Relevant Brands
Building Relentlessly Relevant BrandsBuilding Relentlessly Relevant Brands
Building Relentlessly Relevant BrandsProphet
 
Brand Key Performance Indicators as a Force for Brand Equity Management
Brand Key Performance Indicators as a Force for Brand Equity ManagementBrand Key Performance Indicators as a Force for Brand Equity Management
Brand Key Performance Indicators as a Force for Brand Equity ManagementBloom Partners GmbH
 
Managing B2B Brand Portfolios
Managing B2B Brand PortfoliosManaging B2B Brand Portfolios
Managing B2B Brand PortfoliosFullSurge
 
Green marketing 2010.01
Green marketing 2010.01Green marketing 2010.01
Green marketing 2010.01FullSurge
 
Levenson Blackmarlin Profile
Levenson Blackmarlin ProfileLevenson Blackmarlin Profile
Levenson Blackmarlin Profilerobweiss
 
Branding in the post digital age
Branding in the post digital ageBranding in the post digital age
Branding in the post digital ageNeil Cooper
 
Multi channel marketing strategy - i
Multi channel marketing strategy - iMulti channel marketing strategy - i
Multi channel marketing strategy - iFullSurge
 
Why PR Matters in Branding and Business Valuation.
Why PR Matters in Branding and Business Valuation.Why PR Matters in Branding and Business Valuation.
Why PR Matters in Branding and Business Valuation.Bolaji Okusaga
 
Driving ROI and Growing Your Brand Through Social Media | Jez Frampton, Inter...
Driving ROI and Growing Your Brand Through Social Media | Jez Frampton, Inter...Driving ROI and Growing Your Brand Through Social Media | Jez Frampton, Inter...
Driving ROI and Growing Your Brand Through Social Media | Jez Frampton, Inter...iStrategy
 
Ana green marketing roundtable 2010.02
Ana green marketing roundtable 2010.02Ana green marketing roundtable 2010.02
Ana green marketing roundtable 2010.02FullSurge
 
Brand Metrics to Measure Business Performance
Brand Metrics to Measure Business PerformanceBrand Metrics to Measure Business Performance
Brand Metrics to Measure Business PerformanceFullSurge
 
Strategic Brand Management 1
Strategic Brand Management 1Strategic Brand Management 1
Strategic Brand Management 1rishistd
 
Brand Audit Guidelines
Brand Audit GuidelinesBrand Audit Guidelines
Brand Audit Guidelinesalfonsemathew
 

Tendances (20)

Brand Equity & Its Measurement
Brand Equity & Its MeasurementBrand Equity & Its Measurement
Brand Equity & Its Measurement
 
Corporate Branding That Sticks Slideshare
Corporate Branding That Sticks SlideshareCorporate Branding That Sticks Slideshare
Corporate Branding That Sticks Slideshare
 
Strategic Naming For Merging Healthcare Companies
Strategic Naming For Merging Healthcare CompaniesStrategic Naming For Merging Healthcare Companies
Strategic Naming For Merging Healthcare Companies
 
Building Relentlessly Relevant Brands
Building Relentlessly Relevant BrandsBuilding Relentlessly Relevant Brands
Building Relentlessly Relevant Brands
 
Growth! (2)
Growth! (2)Growth! (2)
Growth! (2)
 
Brand Key Performance Indicators as a Force for Brand Equity Management
Brand Key Performance Indicators as a Force for Brand Equity ManagementBrand Key Performance Indicators as a Force for Brand Equity Management
Brand Key Performance Indicators as a Force for Brand Equity Management
 
Managing B2B Brand Portfolios
Managing B2B Brand PortfoliosManaging B2B Brand Portfolios
Managing B2B Brand Portfolios
 
Green marketing 2010.01
Green marketing 2010.01Green marketing 2010.01
Green marketing 2010.01
 
Levenson Blackmarlin Profile
Levenson Blackmarlin ProfileLevenson Blackmarlin Profile
Levenson Blackmarlin Profile
 
Branding101
Branding101Branding101
Branding101
 
Branding in the post digital age
Branding in the post digital ageBranding in the post digital age
Branding in the post digital age
 
Multi channel marketing strategy - i
Multi channel marketing strategy - iMulti channel marketing strategy - i
Multi channel marketing strategy - i
 
Re branding the company
Re branding the companyRe branding the company
Re branding the company
 
Keller01
Keller01Keller01
Keller01
 
Why PR Matters in Branding and Business Valuation.
Why PR Matters in Branding and Business Valuation.Why PR Matters in Branding and Business Valuation.
Why PR Matters in Branding and Business Valuation.
 
Driving ROI and Growing Your Brand Through Social Media | Jez Frampton, Inter...
Driving ROI and Growing Your Brand Through Social Media | Jez Frampton, Inter...Driving ROI and Growing Your Brand Through Social Media | Jez Frampton, Inter...
Driving ROI and Growing Your Brand Through Social Media | Jez Frampton, Inter...
 
Ana green marketing roundtable 2010.02
Ana green marketing roundtable 2010.02Ana green marketing roundtable 2010.02
Ana green marketing roundtable 2010.02
 
Brand Metrics to Measure Business Performance
Brand Metrics to Measure Business PerformanceBrand Metrics to Measure Business Performance
Brand Metrics to Measure Business Performance
 
Strategic Brand Management 1
Strategic Brand Management 1Strategic Brand Management 1
Strategic Brand Management 1
 
Brand Audit Guidelines
Brand Audit GuidelinesBrand Audit Guidelines
Brand Audit Guidelines
 

En vedette

Packaging That Sells Moosehead Presentation 2015
Packaging That Sells Moosehead Presentation 2015 Packaging That Sells Moosehead Presentation 2015
Packaging That Sells Moosehead Presentation 2015 Jean-Pierre Lacroix, R.G.D.
 
Design Lounge Webinar: Leveraging Loyalty Programs, June 18, 2014
Design Lounge Webinar: Leveraging Loyalty Programs, June 18, 2014Design Lounge Webinar: Leveraging Loyalty Programs, June 18, 2014
Design Lounge Webinar: Leveraging Loyalty Programs, June 18, 2014Jean-Pierre Lacroix, R.G.D.
 
Creating Emotional Connections Through Immersive Digital Experiences
Creating Emotional Connections Through Immersive Digital Experiences Creating Emotional Connections Through Immersive Digital Experiences
Creating Emotional Connections Through Immersive Digital Experiences Jean-Pierre Lacroix, R.G.D.
 
Culture Code: Creating A Lovable Company
Culture Code: Creating A Lovable CompanyCulture Code: Creating A Lovable Company
Culture Code: Creating A Lovable CompanyHubSpot
 

En vedette (19)

Branding the CFO, Presentation, May 14, 2014
Branding the CFO, Presentation, May 14, 2014Branding the CFO, Presentation, May 14, 2014
Branding the CFO, Presentation, May 14, 2014
 
Effectively Managing Print Production
Effectively Managing Print ProductionEffectively Managing Print Production
Effectively Managing Print Production
 
Neuroscience Webinar June 2016
Neuroscience Webinar June 2016 Neuroscience Webinar June 2016
Neuroscience Webinar June 2016
 
Attract, Transact, Retain
Attract, Transact, Retain Attract, Transact, Retain
Attract, Transact, Retain
 
Flow Webinar Presentation May 2016
Flow Webinar Presentation May 2016 Flow Webinar Presentation May 2016
Flow Webinar Presentation May 2016
 
Belonging Presentation Keynote
Belonging Presentation KeynoteBelonging Presentation Keynote
Belonging Presentation Keynote
 
Packaging That Sells Moosehead Presentation 2015
Packaging That Sells Moosehead Presentation 2015 Packaging That Sells Moosehead Presentation 2015
Packaging That Sells Moosehead Presentation 2015
 
Re:Store - Redefining Retail
Re:Store - Redefining RetailRe:Store - Redefining Retail
Re:Store - Redefining Retail
 
Sampling 3.0 Webinar Presentation August 2015
Sampling 3.0 Webinar Presentation August 2015 Sampling 3.0 Webinar Presentation August 2015
Sampling 3.0 Webinar Presentation August 2015
 
The Source Webinar Presentation 2015
The Source Webinar Presentation 2015 The Source Webinar Presentation 2015
The Source Webinar Presentation 2015
 
Belonging Presentation Keynote
Belonging Presentation KeynoteBelonging Presentation Keynote
Belonging Presentation Keynote
 
Digital Experiences Webinar Presentation 2015
Digital Experiences Webinar Presentation 2015Digital Experiences Webinar Presentation 2015
Digital Experiences Webinar Presentation 2015
 
5D: CX Design
5D: CX Design 5D: CX Design
5D: CX Design
 
Sl Portfolio2009
Sl Portfolio2009Sl Portfolio2009
Sl Portfolio2009
 
Design Lounge Webinar: Leveraging Loyalty Programs, June 18, 2014
Design Lounge Webinar: Leveraging Loyalty Programs, June 18, 2014Design Lounge Webinar: Leveraging Loyalty Programs, June 18, 2014
Design Lounge Webinar: Leveraging Loyalty Programs, June 18, 2014
 
Creating Emotional Connections Through Immersive Digital Experiences
Creating Emotional Connections Through Immersive Digital Experiences Creating Emotional Connections Through Immersive Digital Experiences
Creating Emotional Connections Through Immersive Digital Experiences
 
Best Food Beverage Presentation 2015
Best Food Beverage Presentation 2015Best Food Beverage Presentation 2015
Best Food Beverage Presentation 2015
 
Sld toolkit print_production
Sld toolkit print_productionSld toolkit print_production
Sld toolkit print_production
 
Culture Code: Creating A Lovable Company
Culture Code: Creating A Lovable CompanyCulture Code: Creating A Lovable Company
Culture Code: Creating A Lovable Company
 

Similaire à Branding Coherence

A-Whole-New-World
A-Whole-New-WorldA-Whole-New-World
A-Whole-New-WorldLizzie Carr
 
Get Brand Smart - Brand Architecture
Get Brand Smart - Brand ArchitectureGet Brand Smart - Brand Architecture
Get Brand Smart - Brand Architectureemmersons1
 
Co - Branding and Corporate Branding - Introduction to Branding
Co - Branding and Corporate Branding - Introduction to BrandingCo - Branding and Corporate Branding - Introduction to Branding
Co - Branding and Corporate Branding - Introduction to BrandingRai University Ahmedabad
 
Brand Management - Module 1 Notes
Brand Management - Module 1 NotesBrand Management - Module 1 Notes
Brand Management - Module 1 NotesBella Meraki
 
Chapter 8 - SECRETS TO BUILDING A WORLD-CLASS BUSINESS THROUGH LEADERSHIP MAR...
Chapter 8 - SECRETS TO BUILDING A WORLD-CLASS BUSINESS THROUGH LEADERSHIP MAR...Chapter 8 - SECRETS TO BUILDING A WORLD-CLASS BUSINESS THROUGH LEADERSHIP MAR...
Chapter 8 - SECRETS TO BUILDING A WORLD-CLASS BUSINESS THROUGH LEADERSHIP MAR...VINCE FERRARO
 
A "mathematical" diagnostic tool for how to create and manage brand...
A "mathematical" diagnostic tool for how to create and manage brand...A "mathematical" diagnostic tool for how to create and manage brand...
A "mathematical" diagnostic tool for how to create and manage brand...Drthomasbrand Limited
 
Beyond Purpose-Driven Brands: How Marketing Can Activate Movements - Joanne W...
Beyond Purpose-Driven Brands: How Marketing Can Activate Movements - Joanne W...Beyond Purpose-Driven Brands: How Marketing Can Activate Movements - Joanne W...
Beyond Purpose-Driven Brands: How Marketing Can Activate Movements - Joanne W...Marketing Network marcus evans
 
Brand Management Process and Brand Evolution - Introduction to Branding
Brand Management Process and Brand Evolution - Introduction to BrandingBrand Management Process and Brand Evolution - Introduction to Branding
Brand Management Process and Brand Evolution - Introduction to BrandingRai University Ahmedabad
 
3996140 brand-audit-elements
3996140 brand-audit-elements3996140 brand-audit-elements
3996140 brand-audit-elementshardikng
 
3996140 brand-audit-elements
3996140 brand-audit-elements3996140 brand-audit-elements
3996140 brand-audit-elementsMahdi Alibakhshi
 
Najih suraya creating brand equity
Najih suraya creating brand equityNajih suraya creating brand equity
Najih suraya creating brand equityNajih Suraya
 
The State of Enterprise Content Marketing - 2015
The State of Enterprise Content Marketing - 2015The State of Enterprise Content Marketing - 2015
The State of Enterprise Content Marketing - 2015Content Marketing Institute
 
Branding and identity an overview lecture
Branding and identity an overview lectureBranding and identity an overview lecture
Branding and identity an overview lectureThe Design Channel, LLC
 
The Fundamental Core Business Of Google
The Fundamental Core Business Of GoogleThe Fundamental Core Business Of Google
The Fundamental Core Business Of GoogleKate Subramanian
 
Steven geffen digital marketing strategy quirk textbook 5
Steven geffen digital marketing strategy quirk textbook 5Steven geffen digital marketing strategy quirk textbook 5
Steven geffen digital marketing strategy quirk textbook 5Steven Geffen
 

Similaire à Branding Coherence (20)

Brands Essay
Brands EssayBrands Essay
Brands Essay
 
Rebranding Essay
Rebranding EssayRebranding Essay
Rebranding Essay
 
A-Whole-New-World
A-Whole-New-WorldA-Whole-New-World
A-Whole-New-World
 
Get Brand Smart - Brand Architecture
Get Brand Smart - Brand ArchitectureGet Brand Smart - Brand Architecture
Get Brand Smart - Brand Architecture
 
Co - Branding and Corporate Branding - Introduction to Branding
Co - Branding and Corporate Branding - Introduction to BrandingCo - Branding and Corporate Branding - Introduction to Branding
Co - Branding and Corporate Branding - Introduction to Branding
 
Brand Management - Module 1 Notes
Brand Management - Module 1 NotesBrand Management - Module 1 Notes
Brand Management - Module 1 Notes
 
Essay On Brand Awareness
Essay On Brand AwarenessEssay On Brand Awareness
Essay On Brand Awareness
 
Power of branding
Power of brandingPower of branding
Power of branding
 
Chapter 8 - SECRETS TO BUILDING A WORLD-CLASS BUSINESS THROUGH LEADERSHIP MAR...
Chapter 8 - SECRETS TO BUILDING A WORLD-CLASS BUSINESS THROUGH LEADERSHIP MAR...Chapter 8 - SECRETS TO BUILDING A WORLD-CLASS BUSINESS THROUGH LEADERSHIP MAR...
Chapter 8 - SECRETS TO BUILDING A WORLD-CLASS BUSINESS THROUGH LEADERSHIP MAR...
 
A "mathematical" diagnostic tool for how to create and manage brand...
A "mathematical" diagnostic tool for how to create and manage brand...A "mathematical" diagnostic tool for how to create and manage brand...
A "mathematical" diagnostic tool for how to create and manage brand...
 
Beyond Purpose-Driven Brands: How Marketing Can Activate Movements - Joanne W...
Beyond Purpose-Driven Brands: How Marketing Can Activate Movements - Joanne W...Beyond Purpose-Driven Brands: How Marketing Can Activate Movements - Joanne W...
Beyond Purpose-Driven Brands: How Marketing Can Activate Movements - Joanne W...
 
Brand Management Process and Brand Evolution - Introduction to Branding
Brand Management Process and Brand Evolution - Introduction to BrandingBrand Management Process and Brand Evolution - Introduction to Branding
Brand Management Process and Brand Evolution - Introduction to Branding
 
3996140 brand-audit-elements
3996140 brand-audit-elements3996140 brand-audit-elements
3996140 brand-audit-elements
 
3996140 brand-audit-elements
3996140 brand-audit-elements3996140 brand-audit-elements
3996140 brand-audit-elements
 
Membership_Brands
Membership_BrandsMembership_Brands
Membership_Brands
 
Najih suraya creating brand equity
Najih suraya creating brand equityNajih suraya creating brand equity
Najih suraya creating brand equity
 
The State of Enterprise Content Marketing - 2015
The State of Enterprise Content Marketing - 2015The State of Enterprise Content Marketing - 2015
The State of Enterprise Content Marketing - 2015
 
Branding and identity an overview lecture
Branding and identity an overview lectureBranding and identity an overview lecture
Branding and identity an overview lecture
 
The Fundamental Core Business Of Google
The Fundamental Core Business Of GoogleThe Fundamental Core Business Of Google
The Fundamental Core Business Of Google
 
Steven geffen digital marketing strategy quirk textbook 5
Steven geffen digital marketing strategy quirk textbook 5Steven geffen digital marketing strategy quirk textbook 5
Steven geffen digital marketing strategy quirk textbook 5
 

Plus de Jean-Pierre Lacroix, R.G.D.

Products, processes and people: The key to successful branch transformation
Products, processes and people: The key to successful branch transformationProducts, processes and people: The key to successful branch transformation
Products, processes and people: The key to successful branch transformationJean-Pierre Lacroix, R.G.D.
 
Toolkit: Food for Thought; Changes to Nutrition Facts
Toolkit: Food for Thought; Changes to Nutrition FactsToolkit: Food for Thought; Changes to Nutrition Facts
Toolkit: Food for Thought; Changes to Nutrition FactsJean-Pierre Lacroix, R.G.D.
 
Research Paper: Psychology & Visual Design; The Role of Attention, Perception...
Research Paper: Psychology & Visual Design; The Role of Attention, Perception...Research Paper: Psychology & Visual Design; The Role of Attention, Perception...
Research Paper: Psychology & Visual Design; The Role of Attention, Perception...Jean-Pierre Lacroix, R.G.D.
 
How commoditized products redefined their categories
How commoditized products redefined their categoriesHow commoditized products redefined their categories
How commoditized products redefined their categoriesJean-Pierre Lacroix, R.G.D.
 

Plus de Jean-Pierre Lacroix, R.G.D. (18)

Next Branch: Humanizing CX
Next Branch: Humanizing CXNext Branch: Humanizing CX
Next Branch: Humanizing CX
 
Products, processes and people: The key to successful branch transformation
Products, processes and people: The key to successful branch transformationProducts, processes and people: The key to successful branch transformation
Products, processes and people: The key to successful branch transformation
 
Crafting a Branch of the Future
Crafting a Branch of the FutureCrafting a Branch of the Future
Crafting a Branch of the Future
 
Design Brief Fundamentals
Design Brief FundamentalsDesign Brief Fundamentals
Design Brief Fundamentals
 
Banking on the Millennial Experience
Banking on the Millennial ExperienceBanking on the Millennial Experience
Banking on the Millennial Experience
 
Toolkit: The Creative Process
Toolkit: The Creative ProcessToolkit: The Creative Process
Toolkit: The Creative Process
 
Toolkit: Food for Thought; Changes to Nutrition Facts
Toolkit: Food for Thought; Changes to Nutrition FactsToolkit: Food for Thought; Changes to Nutrition Facts
Toolkit: Food for Thought; Changes to Nutrition Facts
 
Study Branding The CFO (FEI Canada)
Study Branding The CFO (FEI Canada)Study Branding The CFO (FEI Canada)
Study Branding The CFO (FEI Canada)
 
Research Paper: Psychology & Visual Design; The Role of Attention, Perception...
Research Paper: Psychology & Visual Design; The Role of Attention, Perception...Research Paper: Psychology & Visual Design; The Role of Attention, Perception...
Research Paper: Psychology & Visual Design; The Role of Attention, Perception...
 
ToolKit: Leveraging the at-purchase moment
ToolKit: Leveraging the at-purchase momentToolKit: Leveraging the at-purchase moment
ToolKit: Leveraging the at-purchase moment
 
White Paper: Added Value Retail Services
White Paper: Added Value Retail ServicesWhite Paper: Added Value Retail Services
White Paper: Added Value Retail Services
 
How to create a winning brand experience
How to create a winning brand experience How to create a winning brand experience
How to create a winning brand experience
 
How to conduct an ideal agency search
How to conduct an ideal agency search How to conduct an ideal agency search
How to conduct an ideal agency search
 
Pet food packaging report
Pet food packaging reportPet food packaging report
Pet food packaging report
 
Six steps to ensuring brand alignment
Six steps to ensuring brand alignmentSix steps to ensuring brand alignment
Six steps to ensuring brand alignment
 
Millennial trends
Millennial trends Millennial trends
Millennial trends
 
How commoditized products redefined their categories
How commoditized products redefined their categoriesHow commoditized products redefined their categories
How commoditized products redefined their categories
 
Digital integration in packaging
Digital integration in packagingDigital integration in packaging
Digital integration in packaging
 

Branding Coherence

  • 1. Branding Coherence Achieving consistency in a world of complexity White paper | August 2012
  • 2. Shikatani Lacroix is a leading branding and design firm located in Toronto, Canada. The company wins commissions from all around the world, across CPG, retail and service industries, helping clients achieve success within their operating markets. It does this by enabling its clients’ brands to better connect with consumers through a variety of core services including corporate identity, naming and communication, brand experience, packaging, retail, wayfinding and product design. About the Author Jean-Pierre Lacroix, R.G.D., President and Founder of Shikatani Lacroix Jean-Pierre (JP) Lacroix provides leadership and direction to his firm, which was founded in 1990. He has spent the last 30 years helping organizations better connect their brands with consumers in ways that impact the overall performance of their business. Mr. Lacroix was the first to coin and trademark the statement “The Blink Factor” in 1990, which today is a cornerstone principle of how brands succeed in the marketplace. JP has authored several papers, has been quoted in numerous branding and design articles, and in 2001 he co- authored the book “The Business of Graphic Design” which has sold over 10,000 copies. JP can be reached at jplacroix@sld.com and you can follow his thought leadership webinars at: www.sldesignlounge.com. Other Articles and Books Belonging Experiences: Designing Engaged Brands Business of Graphic Design White paper | August 2012 | Brand Coherence | 1
  • 3. Yesterday’s marketing speak Buzz marketing. Bricks and clicks. Shopper marketing. There is not a month that goes by that a new marketing term isn’t being introduced or featured as the next best thing for organizations. Most of these, however, focus on marketing and not on the holistic impact of brand alignment required to ensure a higher level of brand engagement. The discussion in marketing boardrooms for the past several years has focused around a theme that allows companies to create loyal customers through an integrated brand engagement strategy: multichannel marketing. My curiosity piqued when multichannel marketing was first mentioned and my search on Google took me to an article by ClickZ in 2003, which introduced the concept as part of its impact on cannibalizing conventional media due the growth of online marketing. Today, multichannel has evolved. It consists of leveraging many different marketing channels, such as a retail store, a web site, a mail-order catalogue, or direct, personal communications by letter, email or text message, to reach customers. The premise of the concept was to make it convenient for consumers to buy from retailers in whatever way is most appropriate to them. White paper | August 2012 | Brand Coherence | 2
  • 4. The level of complexity in a global marketplace, and the degree of sophistication in its response, has significantly accelerated since multichannel marketing was first introduced. This has allowed companies to create a finer, targeted approach as they engage through certain channels, various demographic segments of the market, or different socio- economic groups of consumers. Although there remains a high level of interest in and usage of multichannel marketing, the concept as an overall approach lacks depth in global infrastructure and brand alignment to truly deliver long-term results. To meet these requirements we have defined a new marketing approach: brand coherence. The commoditization law of physics Similar to a gravitational force, industries, irrespective of the sector, cannot easily overcome the pull of commoditization. As categories mature, and innovation becomes a riskier business, features that differentiate one product from another are reduced to table stakes and organizations must rethink their value proposition and portfolio structure. As a recent Booz&Co article by Samrat Sharma confirmed, scale and capabilities remain important for emerging markets but not so in mature, established countries. The mature market opportunity of guaranteed growth by marketing to the middle class, currently a shrinking opportunity, or finding greater efficiencies is no longer a lucrative, sustainable business. Many organizations are being forced to rethink their go-to-market approaches. White paper | August 2012 | Brand Coherence | 3 “Our recent research has demonstrated that companies with greater portfolio coherence (that is, those whose business units have mutually reinforcing capabilities that distinguish the company as a whole) outperform their peers in terms of operating margin.” Traci Entel, Booz&Co., presentation on The Power of the Coherence Premium
  • 5. The emergence of brand coherence Giants within their industries, Kraft, IBM, and PG are realizing that being big is not necessarily better and have started to review their portfolio structure to identify competencies that they can better leverage. In 2011, Kraft announced the formation of two divisions, one that will be focused on the global snack foods business and the other on North American grocery businesses like beverages and cheese. Based on current revenues, the snacks business will comprise about two-thirds of the current Kraft business and it will have considerably more growth than the more stable (yet slow-growing) grocery businesses. Kraft’s strategy follows other large CPG companies such as PepsiCo which, in late 1995, split its restaurant and food/ beverage business into two separate companies and then in 2010, split its beverage from its food brands into two separate business units. In both of these cases, the organizations have structured their businesses to allow for greater focus on their core capabilities, allowing each to gain growth by filling the white spaces and finding greater operational efficiencies. More importantly, by separating companies along competencies and evolving capabilities beyond operational efficiencies, organizations have realized greater market share growth and revenues. This alignment behind very focused value propositions is one of the fundamental principles in creating strong brand coherence. White paper | August 2012 | Brand Coherence | 4
  • 6. Brand coherence is the end result of aligning all of the brand’s moments of truth and offerings behind one central value proposition which is clearly articulated as part of a brand card. Allowing each facet of the organization – manufacturing, distribution, marketing, operations, finance – to clearly understand the value of the brand and align its culture to deliver the brand’s promise ensures strong brand coherence. To better understand the fundamental principles of brand coherence, we need to define what supports its momentum and direction. We have mirrored this coherence model and its principles to an infinity loop that starts and ends with Brand Equity. The loop consists of two equal interconnection loops, one which establishes the foundation for Brand Equity while the other allows this equity to be personified and executed in a continuous never ending process with each marketing element of the Brand Coherence Loop helping build consistent brand equity. White paper | August 2012 | Brand Coherence | 5 Brand Coherence Infinity Loop Foundation Momentum
  • 7. In order to ensure the brand has a coherent strategy, it must start by clearly understanding its core equities that support the brand pillars, or more importantly, the timeless challenge the brand must overcome for itself and its core target group. Based on clearly defined brand pillars that help support a brand’s long-term equities, the loop takes into account brand value – the one key attribute that allows the brand to differentiate itself from competitors Brand value is anchored in both cognitive and emotive dimensions. Leveraging a clearly defined brand value, the loop takes into consideration the brand persona in addition to the position, mission and vision. Ultimately these steps within the Brand Coherence Infinity Loop lead back to Brand Equity, which is summarized in a single brand essence statement. Only once the Brand Equity is clearly defined can the brand craft an effective brand identity that assists the various supporting elements of the brand. From the development of a strong and differentiated brand identity, which would include a corporate identity, company culture, supporting proof- points and a visual manifestation of the brand, the process would move to the next level, namely the brand portfolio. This stage would consist of clearly aligning the various offerings within the portfolio to the Brand Equity, allowing either a restructuring of the portfolio or the elimination of certain products that do not support its value proposition. White paper | August 2012 | Brand Coherence | 6
  • 8. Only when the brand identity and portfolio have been clearly defined can the brand consider marketing and support initiatives, such as social media, online, and offline marketing activities. This leads to the in-store presence, better known as shopper marketing. Each one of the elements of the Brand Coherence Infinity Loop helps build and support the brand’s equity. In isolation, each of these elements has little power to grow brand equity, but combined they have the cumulative impact to shape the brand in a highly competitive marketplace. Brand coherence requires that each element of the brand equity is supported and aligned to a single and compelling value proposition and essence. Only when all of these elements work in unison can the marketing initiatives sustain growth and margin for the brand. White paper | August 2012 | Brand Coherence | 7
  • 9. The two sides of the brand coherence pendulum For the past 37 years, I have witnessed and been party to organizations that align all of their divisions behind one central value proposition, which results in significant market clout and efficiencies that allow for a higher margin and return on investments. Most large multinational companies have implemented such initiatives. Today, this is the trend for the banking, technology and consumer packaged goods industry. In the majority of cases, the integration behind one brand message and value proposition is primarily driven by the need to consolidate the various business acquisitions that fueled the organization’s growth. However, once organizations have optimized their operational efficiencies and market share consolidation, they tend to explore counter coherent strategies that focus on regional nuances and local marketing initiatives. The risk and challenge for these brands is to ensure that their market-share growth initiatives align with a coherent brand strategy that ensures a strong foundation and minimizes the risk of brand equity erosion. We have identified a branding model that goes beyond finding efficiencies to clearly identify the different factors that support a coherent strategy. White paper | August 2012 | Brand Coherence | 8
  • 10. Conclusion As industries mature and the differentiation between offerings narrow, organizations are reconsidering the impact and cost of divergent branding strategies. In addition, as brands become global, there will be greater pressure in defining what makes the brand unique across cultures, countries and languages. Defining a Brand Coherent strategy will enable organizations to evolve their need for consistency and efficiency by linking each of their initiatives towards building stronger brand equity. Ultimately, Brand Coherence is about the power of focus and the ability to leverage scale through a consistent and highly integrated branding strategy. The Brand Coherence Infinity Loop will also allow organizations to evolve their multi-channel strategies to ensure that their products remain relevant, meaningful and differentiated, irrespective of the individual brand’s moments of truth. The process must start with a strong foundation, the reason for the brand’s existence, and be supported by the momentum to enable marketing and executional initiatives. A well-defined brand position and essence that is poorly executed has the same inherit long-term drawbacks as a poorly positioned brand that is well executed. Neither is a viable option for sustainable growth, greater margin and brand affinity. White paper | August 2012 | Brand Coherence | 9
  • 11. For more information, contact: Jean-Pierre Lacroix, President Shikatani Lacroix 387 Richmond Street East Toronto, Ontario M5A 1P6 Telephone: 416-367-1999 Email: jplacroix@sld.com White paper | August 2012 | Brand Coherence | 10