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Brand values as the root
               of authenticity, coherence
               and emotion in marketing

               Renzo Rizzo, Direttore della Practice
               Business Innovation e del Master in
               Marketing Management e Innovazione alla
               Fondazione ISTUD Business School
www.istud.it
Business Innovation Practice


 ISTUD Business School
‣ Established in 1970 by initiative of Assolombarda and a group of large
  Italian and multinational companies, ISTUD (acronym for Institute for
  Management Studies) has accompanied the evolution of Italian
  Management, contributing to the diffusion of a modern management
  and leadership culture in many Italian companies and subsidiaries of
  multinational companies, both large and medium/small.
‣ Its purpose is to support the growth and competence development of
  companies that want to compete through a new and sustainable
  economic model, based on the creation of value for all the stakeholders
  involved in the economic process such as a company’s customers,
  collaborators and partners, shareholders and investors, as well as the
  very social context where the company lives.




                                                        Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
Business Innovation Practice


Brand values as a basis for a coherent,
authentic and emotional relationship with
customer
                               ‣ Coherence, authenticity and
                                 emotional connection are ever
                                 more important as a brand and
                                 company communication
                                 becomes more fragmented and
                                 less controllable.
                               ‣ A brand is the personification of a
                                 company offering, and at its best
                                 it can be a guide through the
                                 increased complication of the
                                 market, and a center of meaning
                                 for customer relationship with
                                 companies.

                                                 Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
Business Innovation Practice


 So it is important that brands have an
 attractive and coherent personality
‣ Personality is the particular
  combination of emotional,
  attitudinal, and behavioral
  response patterns of an
  individual.
‣ According to the trait theory,
  personality is defined by traits -
  habitual patterns of behavior,
  thought, and emotion.
‣ According to this perspective,
  traits are relatively stable over
  time, are different across
  individuals, and influence
  behavior.
                                      Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
Business Innovation Practice


Developing a coherent brand personality
starts with the values that identify the brand
‣ The values that attract us to a
  brand can have different
  emotional strength, depending on
  whether they relate to a material     Expression and ideals
                                               values
  promise, to an expected
  experience, or to intangible ideas
  that fulfill our self expression
                                           Experience and
  desires and aspirations.                aesthetics values
‣ A unique combination of values
  characterizes the brand, setting it
  apart from the competition and at       Effectiveness and
  the same time determines its            functional values
  potential emotional strength and
  intangible content.

                                               Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
In 1999, Timberland PRO was created to bring boots and shoes to working
                                                                 professionals that consider their footwear a necessary tool of the trade.
                                                                 Each year since, Timberland PRO® footwear has out-classed the competition
 Business Innovation Practice
                                                                 by continually delivering ground-breaking innovations designed to keep

 Coherence through the products                                  workers in various professions safe, comfortable and energized on the job.
                                                                 In 2009, PRO launched stayonyourfeet.com to promote the Timberland PRO® Endurance work boot. The site
                                                                 highlighted the benefits of our exclusive Anti-Fatigue Technology while allowing visitors to search for sector-
                                                                 specific jobs in their area, helping workers stay on their feet in more ways than one during the tough economy.


‣ We love the outdoor and take                                   And while sales of Timberland PRO® series were flat in 2009, it was actually a positive sign in a category that
                                                                 took a particularly big hit last year. With innovative new products and expanded markets on the horizon, we

  pride in equipping people to                                   fully expect Timberland PRO to return to its historical growth pattern as the economy improves. With a maniacal
                                                                 focus on the consumers we serve, innovation-laden product and ever-growing brand recognition, the Timberland PRO®

  enjoy it as much as we do.                                     series remains an important and natural extension of our core brand.
                                                                    ounger consumers expect products to be technical
                                                                    and durable, but they also want edgy styling and
                                                                    construction mindful of its environmental impact. This


‣ We are masters of shoemaking                           consumer has spoken and we listened. Launched in the Fall of
                                                         2009, Timberland® Mountain Athletics® has become the marquee
                                                         label of our outdoor performance product. This trail-running and


  and storytelling.                                      hiking line was designed to fuse trend and innovation, featuring
                                                         Green Rubber™ soles made of 42% recycled rubber to help outdoor
                                                         enthusiasts leave the environment the way they found it.




‣ True to our environmental values.
                                                         To target this younger, faster consumer, we launched an aggressive,
                                                         multi-faceted marketing campaign that included blogs, mobile
                                                         media, a public relations blitz and a celebrated ad campaign
                                                                                                                                  consumers, action sports and environmentalism. Timberland is
                                                         featuring television, print and outdoor. We supported the campaign
                                                                                                                                  engaging these more traditional shoppers by bringing innovation


‣ While our heritage products have
                                                         with Timberland® Mountain Athletics® retail store displays to
                                                                                                                                  to our rugged, proven and dependable outdoor product.
                                                         generate buzz about this dynamic segment of our business.
                                                                                                                                  Timberland uses innovative components, compounds and
                                   lassics are classics for a reason. still learning from the launch of our Timberland®
                                                        Though we are They aren’t of a particular



  withstood the test of time, with
                                                                                                                                  constructions to take our consumers anywhere—from the summit
                                   time or place, and were never made to satisfy a trend. We
                                                      Mountain Athletics® footwear, it met our expectations of reconnecting
                                                                                                                                  to the sidewalk. We’re one of the few brands with the ability to
                                   have silhouettes that haveoutdoor worn by generations and “halo” effect that
                                                      with the been consumer, and helped create a
                                                                                                                                  bring a rugged heritage plus a distinct look and feel to a range of
                         are just as relevant now as they were in theon all of our outdoor they areIn 2009, we saw
                                                      continues to shine 1970s, because products.


  each generation we continue to
                                                                                                                                  outdoor-wearing occasions. As we continue to provide outdoor-
                                                         a resurgence of our tried-and-true outdoor hiking silhouettes, led
                         the perfect balance of craftsmanship, function and fashion. Last year                                    proven gear to consumers—marketed thoughtfully and produced
                                                         by core day-hiking performance boots and shoes. The traditional
                         we made a concerted effort to focus on our classic styles through                                        in an environmentally respectful way—we’re confident that our



  make products for light, fast and
                                                         outdoor footwear segment is being influenced by younger
                         better distribution, greater visibility and adding fresh twists. The                                     resurgence as an authentic outdoor retailer has only just begun.
                         Abington Collection is a perfect example, combining styles from
                         decades past with subtle design elements and colors that bring them

  further performance:   into the modern era.

                         The marketing campaign for our Classics product taps into the


      Classics
                         consumer’s insistence on great value, especially in light of macro-
                         economic trends. We also entered into high-visibility collaborations
                         with key upscale retailers such as Saks, Collette and Stüssy,

      Performance        creating limited-edition collections sold only through their doors.
                         These partnerships, while small in scale, are big in impact and help
                                                                                                                  After nearly 40 years, the iconic 10061 is still the product we base all others on.



      Earth-keepers
                                                                                                                  We make these Classics products efficiently, which gives us the
                         to elevate the brand.
                                                                                                                  flexibility to test and nurture new product ideas. In the year ahead,
                         To create even more buzz, we continue to give the consumer artistic

      Timberland Pro
                                                                                                                  we expect Classics to play a significant role, driving a large
                         control through our Design Your Own Handsewn (DYOH) program,                             portion of footwear sales in each region. These styles are rugged,
                         which followed on the heels of our successful Design Your Own Boot                       durable and outdoor-capable, making them a true reflection of the
                         program. DYOH allows consumers to choose from various leather                            Timberland® brand.
                         options, colors, laces, embroidery, hand stitching and hardware to
                         create a truly one-of-a-kind shoe. The program was particularly
                                                                                                                                                                                          Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
                         successful in Asia in 2009, and will continue to build brand cachet
                                                        12
                         in that region in 2010.
Business Innovation Practice


 Coherence through the key
 engagement points
‣ Awareness through wom and
  advertising images, and web site.
‣ Purchase through dedicated stores
  and the web.
‣ Music and perfume, people
  behaviour and looks
‣ Products of consistent quality and
  recognizable design.
‣ Customer service.
‣ Direct engagement with the brand.
‣ Coherent visual, physical,
  emotional manifestations.

                                       Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
Business Innovation Practice


 Coherence through the key
 engagement points
‣ OVS Industry, leader in the
  Italian apparel sector with 
  870M€ sales: a new
  interpretation of shopping,
  characterized by constant
  renewal, quality and a fair
  price.
‣ Strong Italian positioning,
  present throughout.
‣ Collections from collaboration
  with famous designers like
  Ennio Capasa, Elio Fiorucci
  and Davide de Giglio.


                                   Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
Business Innovation Practice


 Coherence from the inside out



‣ Zappos, an on-line retailer of
  shoes and clothing, is so
  focused on customer service
  and on one-to-one relationship
  that it moved its headquarter
  from California to Nevada (near
                                      Deliver WOW Through Service
  Las Vegas), in order to find         Embrace and Drive Change
  better personnel to staff for its   Create Fun and A Little Weirdness
  call canter.                        Be Adventurous, Creative, and Open-Minded
                                      Pursue Growth and Learning
‣ The company service and             Build Open and Honest Relationships
                                      Build a Positive Team and Family Spirit
  frugality values are very           Do More With Less
  coherent with the band values.      Be Passionate and Determined
                                      Be Humble
                                                    Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
Business Innovation Practice


 Coherence from the inside out
‣ ... apply one key principle to the
  production of artisanal ice cream
  (...): purchasing ingredients of
  absolutely high quality.
‣ (...) they start for a quest from
  Langhe up to Sicily and Central
  America, looking for the best the
  world of agricolture has to offer.
‣ Only fresh seasonal fruit, from the
  best areas in italy and from their
  own farm, no use of colorants
  and flavors, only fresh whole milk
  of top quality for the creams,
  organic eggs and a selection fo
  the best cocoas and coffee form
  Central America.
                                        Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
Business Innovation Practice


 The basis for brand authenticity



                                 Values and        Positioning
                                 principles of   and personality
                                the company       of the brand




‣ “Why is internal marketing so important? Because it is the best way to
  help employees make a powerful emotional connection to the products
  and services you sell. Without that connection, employees are likely to
  undermine the expectations set by your advertising” (Colin Mitchell,
  Ogilvy & Mathers).
‣ But even with the best marketing skills you can not fake values, either
  you have them or you don’t... and it shows.
                                                                   Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
Business Innovation Practice


 A model to build a coherent brand
 personality            Story  Substance
                                      (thoughts)     (behaviour)
                                                                                    Stages
                                                                                  (relationship)


‣ A brand’s combination of                                                      Participation
  values sets it apart and         Expression and   Knowledge
  defines its potential emotional    ideals values    attributes

  strength.                                                                      Integration

‣ The brand expresses itself
  through its products and their
                                                                                    Usage
  attributes...                    Experience and
                                                     Sensory
‣ ... and through the various        aesthetics
                                                     attributes
                                       values
  engagement moments of the                                                       Purchase
  customers’ journey from
  awareness to bonding and
  participation in the brand.                                                    Evaluation
                                   Effectiveness
‣ The brand values must be         and functional
                                                     Functional
                                                     attributes
  coherent with the company            values
                                                                                 Awareness
  internal values.
                                                          Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
Business Innovation Practice


The role of marketing, as we live it at
ISTUD Business School

“marketing... learns about (customers)
needs, desires and fears and designs and
supplies products with those considerations
in mind; (different from sales) it does not try
to make buyers want what the seller has,
but to have what buyers want (or might
want)...”
Theodore C. Levitt, After the sale is over, HBR, July/August 1983


                                                                    Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
Business Innovation Practice


 ISTUD Business Innovation
‣ Help identifying the values that can set your brand apart, and drive
  coherence in the various elements of the brand equity web.
‣ Use methods proven by direct management and consulting
  experience of its consultants, teachers and coaches.
‣ Development of brand strategy, equity, architecture, marketing mix.
‣ Brief and guidance of agencies that develop visual branding,
  communication, packaging, product, web presence.
‣ Education and coaching for marketing people.




                                                         Renzo Rizzo Global Marketing 2011; rrizzo@istud.it

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Brand values as the root of authenticity, coherence and emotion in marketing

  • 1. Brand values as the root of authenticity, coherence and emotion in marketing Renzo Rizzo, Direttore della Practice Business Innovation e del Master in Marketing Management e Innovazione alla Fondazione ISTUD Business School www.istud.it
  • 2. Business Innovation Practice ISTUD Business School ‣ Established in 1970 by initiative of Assolombarda and a group of large Italian and multinational companies, ISTUD (acronym for Institute for Management Studies) has accompanied the evolution of Italian Management, contributing to the diffusion of a modern management and leadership culture in many Italian companies and subsidiaries of multinational companies, both large and medium/small. ‣ Its purpose is to support the growth and competence development of companies that want to compete through a new and sustainable economic model, based on the creation of value for all the stakeholders involved in the economic process such as a company’s customers, collaborators and partners, shareholders and investors, as well as the very social context where the company lives. Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 3. Business Innovation Practice Brand values as a basis for a coherent, authentic and emotional relationship with customer ‣ Coherence, authenticity and emotional connection are ever more important as a brand and company communication becomes more fragmented and less controllable. ‣ A brand is the personification of a company offering, and at its best it can be a guide through the increased complication of the market, and a center of meaning for customer relationship with companies. Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 4. Business Innovation Practice So it is important that brands have an attractive and coherent personality ‣ Personality is the particular combination of emotional, attitudinal, and behavioral response patterns of an individual. ‣ According to the trait theory, personality is defined by traits - habitual patterns of behavior, thought, and emotion. ‣ According to this perspective, traits are relatively stable over time, are different across individuals, and influence behavior. Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 5. Business Innovation Practice Developing a coherent brand personality starts with the values that identify the brand ‣ The values that attract us to a brand can have different emotional strength, depending on whether they relate to a material Expression and ideals values promise, to an expected experience, or to intangible ideas that fulfill our self expression Experience and desires and aspirations. aesthetics values ‣ A unique combination of values characterizes the brand, setting it apart from the competition and at Effectiveness and the same time determines its functional values potential emotional strength and intangible content. Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 6. In 1999, Timberland PRO was created to bring boots and shoes to working professionals that consider their footwear a necessary tool of the trade. Each year since, Timberland PRO® footwear has out-classed the competition Business Innovation Practice by continually delivering ground-breaking innovations designed to keep Coherence through the products workers in various professions safe, comfortable and energized on the job. In 2009, PRO launched stayonyourfeet.com to promote the Timberland PRO® Endurance work boot. The site highlighted the benefits of our exclusive Anti-Fatigue Technology while allowing visitors to search for sector- specific jobs in their area, helping workers stay on their feet in more ways than one during the tough economy. ‣ We love the outdoor and take And while sales of Timberland PRO® series were flat in 2009, it was actually a positive sign in a category that took a particularly big hit last year. With innovative new products and expanded markets on the horizon, we pride in equipping people to fully expect Timberland PRO to return to its historical growth pattern as the economy improves. With a maniacal focus on the consumers we serve, innovation-laden product and ever-growing brand recognition, the Timberland PRO® enjoy it as much as we do. series remains an important and natural extension of our core brand. ounger consumers expect products to be technical and durable, but they also want edgy styling and construction mindful of its environmental impact. This ‣ We are masters of shoemaking consumer has spoken and we listened. Launched in the Fall of 2009, Timberland® Mountain Athletics® has become the marquee label of our outdoor performance product. This trail-running and and storytelling. hiking line was designed to fuse trend and innovation, featuring Green Rubber™ soles made of 42% recycled rubber to help outdoor enthusiasts leave the environment the way they found it. ‣ True to our environmental values. To target this younger, faster consumer, we launched an aggressive, multi-faceted marketing campaign that included blogs, mobile media, a public relations blitz and a celebrated ad campaign consumers, action sports and environmentalism. Timberland is featuring television, print and outdoor. We supported the campaign engaging these more traditional shoppers by bringing innovation ‣ While our heritage products have with Timberland® Mountain Athletics® retail store displays to to our rugged, proven and dependable outdoor product. generate buzz about this dynamic segment of our business. Timberland uses innovative components, compounds and lassics are classics for a reason. still learning from the launch of our Timberland® Though we are They aren’t of a particular withstood the test of time, with constructions to take our consumers anywhere—from the summit time or place, and were never made to satisfy a trend. We Mountain Athletics® footwear, it met our expectations of reconnecting to the sidewalk. We’re one of the few brands with the ability to have silhouettes that haveoutdoor worn by generations and “halo” effect that with the been consumer, and helped create a bring a rugged heritage plus a distinct look and feel to a range of are just as relevant now as they were in theon all of our outdoor they areIn 2009, we saw continues to shine 1970s, because products. each generation we continue to outdoor-wearing occasions. As we continue to provide outdoor- a resurgence of our tried-and-true outdoor hiking silhouettes, led the perfect balance of craftsmanship, function and fashion. Last year proven gear to consumers—marketed thoughtfully and produced by core day-hiking performance boots and shoes. The traditional we made a concerted effort to focus on our classic styles through in an environmentally respectful way—we’re confident that our make products for light, fast and outdoor footwear segment is being influenced by younger better distribution, greater visibility and adding fresh twists. The resurgence as an authentic outdoor retailer has only just begun. Abington Collection is a perfect example, combining styles from decades past with subtle design elements and colors that bring them further performance: into the modern era. The marketing campaign for our Classics product taps into the Classics consumer’s insistence on great value, especially in light of macro- economic trends. We also entered into high-visibility collaborations with key upscale retailers such as Saks, Collette and Stüssy, Performance creating limited-edition collections sold only through their doors. These partnerships, while small in scale, are big in impact and help After nearly 40 years, the iconic 10061 is still the product we base all others on. Earth-keepers We make these Classics products efficiently, which gives us the to elevate the brand. flexibility to test and nurture new product ideas. In the year ahead, To create even more buzz, we continue to give the consumer artistic Timberland Pro we expect Classics to play a significant role, driving a large control through our Design Your Own Handsewn (DYOH) program, portion of footwear sales in each region. These styles are rugged, which followed on the heels of our successful Design Your Own Boot durable and outdoor-capable, making them a true reflection of the program. DYOH allows consumers to choose from various leather Timberland® brand. options, colors, laces, embroidery, hand stitching and hardware to create a truly one-of-a-kind shoe. The program was particularly Renzo Rizzo Global Marketing 2011; rrizzo@istud.it successful in Asia in 2009, and will continue to build brand cachet 12 in that region in 2010.
  • 7. Business Innovation Practice Coherence through the key engagement points ‣ Awareness through wom and advertising images, and web site. ‣ Purchase through dedicated stores and the web. ‣ Music and perfume, people behaviour and looks ‣ Products of consistent quality and recognizable design. ‣ Customer service. ‣ Direct engagement with the brand. ‣ Coherent visual, physical, emotional manifestations. Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 8. Business Innovation Practice Coherence through the key engagement points ‣ OVS Industry, leader in the Italian apparel sector with  870M€ sales: a new interpretation of shopping, characterized by constant renewal, quality and a fair price. ‣ Strong Italian positioning, present throughout. ‣ Collections from collaboration with famous designers like Ennio Capasa, Elio Fiorucci and Davide de Giglio. Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 9. Business Innovation Practice Coherence from the inside out ‣ Zappos, an on-line retailer of shoes and clothing, is so focused on customer service and on one-to-one relationship that it moved its headquarter from California to Nevada (near Deliver WOW Through Service Las Vegas), in order to find Embrace and Drive Change better personnel to staff for its Create Fun and A Little Weirdness call canter. Be Adventurous, Creative, and Open-Minded Pursue Growth and Learning ‣ The company service and Build Open and Honest Relationships Build a Positive Team and Family Spirit frugality values are very Do More With Less coherent with the band values. Be Passionate and Determined Be Humble Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 10. Business Innovation Practice Coherence from the inside out ‣ ... apply one key principle to the production of artisanal ice cream (...): purchasing ingredients of absolutely high quality. ‣ (...) they start for a quest from Langhe up to Sicily and Central America, looking for the best the world of agricolture has to offer. ‣ Only fresh seasonal fruit, from the best areas in italy and from their own farm, no use of colorants and flavors, only fresh whole milk of top quality for the creams, organic eggs and a selection fo the best cocoas and coffee form Central America. Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 11. Business Innovation Practice The basis for brand authenticity Values and Positioning principles of and personality the company of the brand ‣ “Why is internal marketing so important? Because it is the best way to help employees make a powerful emotional connection to the products and services you sell. Without that connection, employees are likely to undermine the expectations set by your advertising” (Colin Mitchell, Ogilvy & Mathers). ‣ But even with the best marketing skills you can not fake values, either you have them or you don’t... and it shows. Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 12. Business Innovation Practice A model to build a coherent brand personality Story Substance (thoughts) (behaviour) Stages (relationship) ‣ A brand’s combination of Participation values sets it apart and Expression and Knowledge defines its potential emotional ideals values attributes strength. Integration ‣ The brand expresses itself through its products and their Usage attributes... Experience and Sensory ‣ ... and through the various aesthetics attributes values engagement moments of the Purchase customers’ journey from awareness to bonding and participation in the brand. Evaluation Effectiveness ‣ The brand values must be and functional Functional attributes coherent with the company values Awareness internal values. Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 13. Business Innovation Practice The role of marketing, as we live it at ISTUD Business School “marketing... learns about (customers) needs, desires and fears and designs and supplies products with those considerations in mind; (different from sales) it does not try to make buyers want what the seller has, but to have what buyers want (or might want)...” Theodore C. Levitt, After the sale is over, HBR, July/August 1983 Renzo Rizzo Global Marketing 2011; rrizzo@istud.it
  • 14. Business Innovation Practice ISTUD Business Innovation ‣ Help identifying the values that can set your brand apart, and drive coherence in the various elements of the brand equity web. ‣ Use methods proven by direct management and consulting experience of its consultants, teachers and coaches. ‣ Development of brand strategy, equity, architecture, marketing mix. ‣ Brief and guidance of agencies that develop visual branding, communication, packaging, product, web presence. ‣ Education and coaching for marketing people. Renzo Rizzo Global Marketing 2011; rrizzo@istud.it