HOW TO BRIDGE THE DISTANCE BETWEEN BUSINESS STRATEGY AND DESIGN

A VISUAL PRESENTATION BY MARTY NEUMEIER

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Produced by NEUTRON LLC in partnership with NEW RIDERS PUBLISHING and THE AMERICAN INSTITUTE OF GRAPHIC ARTS

Copyright © 2003 Neutron LLC. For educational use only. No part of this presentation may be published, sold, or otherwise used for profit without the written permission of the author.

WHAT YOU’LL LEARN:

1

A modern definition of brand The five disciplines of brand-building

2

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READY?

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LET’S START BY DISPELLING SOME MYTHS.

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FIRST
A brand is not a logo.

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SECOND
A brand is not an identity.

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X

FINALLY
A brand is not a product.
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So

what exactly
is a brand?

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A BRAND IS A PERSON’S GUT FEELING ABOUT A PRODUCT, SERVICE, OR ORGANIZATION.

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In other words…

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IT’S NOT WHAT YOU SAY IT IS.

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IT’S WHAT THEY SAY IT IS.

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WHY IS BRANDING SO HOT?

1

People have too many choices and too little time Most offerings have similar quality and features We tend to base our buying choices on trust

2

3

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THERE ARE 1,349 CAMERAS ON THE MARKET. HOW DO YOU DECIDE WHICH ONE TO BUY?

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TRUST

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Does a brand have a dollar value?

$

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AND HOW.
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5 ways to measure brand value:
1 PRICE PREMIUM

2 CUSTOMER PREFERENCE

3 REPLACEMENT COST

4 STOCK PRICE

5 FUTURE EARNINGS

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THIS SELECTION FROM INTERBRAND’S TOP 100 LIST SHOWS WHY BRANDS ARE WORTH PROTECTING:
2001 BRAND NAME COCA-COLA MICROSOFT IBM FORD MERCEDES HONDA BMW KODAK GAP NIKE PEPSI XEROX APPLE STARBUCKS BRAND VALUE ($MM) 68,945 65,068 52,752 30,092 21,728 14,638 13,858 10,801 8,746 7,589 6,214 6,019 5,464 1,757 % CHANGE BRAND VS. PREVIOUS YEAR -5% -7% -1% -17% +3% -4% +7% -9% -6% -5% -6% -38% -17% +32% BRAND VALUE AS % OF MARKET CAP 61% 17% 27% 66% 48% 33% 62% 82% 35% 66% 9% 93% 66% 21%

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COKE’S MARKET CAP, INCLUDING BRAND VALUE: $120 BILLION

WITHOUT THE BRAND, COKE’S GLASS WOULD BE HALF EMPTY.

COKE’S MARKET CAP, NOT INCLUDING BRAND VALUE: $50 BILLION

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The main purpose of branding is to get more people to buy more stuff for more years at a higher price.

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B = S b
BANG SUCCESS BUCK
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Brand

Business

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PREDICTION

BRAND WILL BECOME THE MOST POWERFUL STRATEGIC TOOL SINCE THE SPREADSHEET.

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PROBLEM
In most companies, STRATEGY

is separated from CREATIVITY by a wide gap.
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STRATEGIC THINKERS

CREATIVE THINKERS

Analytical Logical Linear Numerical Verbal

Intuitive Emotional Spatial Visual Physical

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DOES THE LEFT BRAIN KNOW WHAT THE RIGHT BRAIN IS DOING?

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When both sides work together, you can build a charismatic brand.
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A CHARISMATIC BRAND is any product, service, or organization for which people believe there’s no substitute.

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QUIZ :

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Which of these brands are charismatic?
AMAZON APPLE BURGER KING COLDWATER CREEK DASANI DISNEY DK BOOKS EVEREADY FORD GENERAL ELECTRIC GOOGLE HANES HITACHI HOME DEPOT IKEA KMART KRISPY KREME LEVI’S LONGS DRUGS MACY’S MINI COOPER NEWSWEEK NISSAN NORDSTROM OXO GOODGRIPS PEPSI-COLA PRELL RCA REEBOK RUBBERMAID SAFEWAY SAMSUNG SEARS SOUTHWEST AIRLINES UNITED ARTISTS VIRGIN

QUIZ :

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Which of these brands are charismatic?
AMAZON APPLE BURGER KING COLDWATER CREEK DASANI DISNEY DK BOOKS EVEREADY FORD GENERAL ELECTRIC GOOGLE HANES HITACHI HOME DEPOT IKEA KMART KRISPY KREME LEVI’S LONGS DRUGS MACY’S MINI COOPER NEWSWEEK NISSAN NORDSTROM OXO GOODGRIPS PEPSI-COLA PRELL RCA REEBOK RUBBERMAID SAFEWAY SAMSUNG SEARS SOUTHWEST AIRLINES UNITED ARTISTS VIRGIN

Any brand can be charismatic.

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EVEN
YOURS.

But first,

you have to master the FIVE

DISCIPLINES OF BRAND-BUILDING .

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DISCIPLINE 1: DIFFERENTIATE

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WE’RE HARDWIRED TO NOTICE ONLY WHAT’S DIFFERENT.

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SOLUTION:

BE DIFFERENT.
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FEATURES

BENEFITS

EXPERIENCE

IDENTIFICATION

“What it is”

“What it does”

“What you feel”

“Who you are”

1900

1925

1950

2000

Marketing today is about creating tribes.

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People join different tribes for different activities.
DRIVING VOLKSWAGEN

READING
COMPUTING DELL

AMAZON

SPORTS

NIKE

COOKING

WILLIAMS-SONOMA

BANKING

CITIBANK

TRAVEL
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ORBITZ

ON SUNDAYS THEY WORSHIP HARLEY, GOD OF THE OPEN ROAD.

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The three most important words in differentiating your brand:

1

FOCUS

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2

FOCUS

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3

FOCUS

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IS THIS HOW YOUR CUSTOMERS SEE YOU?

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THE FOCUS TEST:

1

Who are you? What do you do? Why does it matter?

2

3

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Unless you have compelling answers to these questions,

you need more focus.

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The most common reason for loss of focus is ILL-CONSIDERED BRAND EXTENSIONS.

EXAMPLE:

FOCUSED UNFOCUSED

PORSCHE = SPORTS CARS PORSCHE = SPORTS CARS + SUVS

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EXAMPLE:

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THE GOOD GRIPS BRAND HAS GROWN STRONGER WITH EVERY BRAND EXTENSION.

DISCIPLINE 2: COLLABORATE

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LIKE BUILDING A CATHEDRAL, BUILDING A BRAND IS A COLLABORATIVE PROJECT.

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It takes a village to build a brand.

THERE ARE THREE BASIC MODELS FOR ORGANIZING BRAND COLLABORATION:

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The ONE-STOP SHOP contains the resources to develop and steward the brand.

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C R E AT I V E SERVICES A DV E RT I S I N G DIRECT RESPONSE RESEARCH POP D I S P L AY S EXHIBITS

IDENTITY

PUBLIC R E L AT I O N S SUPPLIERS

EVENTS

PRODUCT DESIGN PROMOTIONS

P U B L I C AT I O N S WEB DESIGN NAMING PA C K A G I N G

BRAND ST R AT E G Y

ANNUAL REPORTS

C O M PA N Y

ONE-STOP SHOP SCORECARD

Easy to manage Promise of consistency

Little choice of teams Little ownership of brand

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The BRAND AGENCY hires best-of-breed firms to help develop and steward the brand.

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POP D I S P L AY S C R E AT I V E SERVICES IDENTITY

DIRECT RESPONSE

RESEARCH A DV E RT I S I N G

ANNUAL REPORTS

SUPPLIERS

EVENTS BRAND AGENCY PROMOTIONS

NAMING

BRAND S T R AT E G Y

PA C K A G I N G P U B L I C AT I O N S PRODUCT WEB DESIGN DESIGN

PUBLIC R E L AT I O N S EXHIBITS

C O M PA N Y

BRAND AGENCY SCORECARD

Choice of teams Promise of consistency

Little ownership of brand

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The INTEGRATED MARKETING TEAM is managed internally with open collaboration among best-of-breed specialists.
DIRECT RESPONSE ANNUAL REPORTS

C R E AT I V E S E RV I C E S A DV E RT I S I N G

RESEARCH

IDENTITY

EVENTS POP D I S P L AY S

EXHIBITS

C O M PA N Y

SUPPLIERS

PUBLIC R E L AT I O N S PROMOTIONS

WEB DESIGN PA C K A G I N G

P U B L I C AT I O N S

BRAND S T R AT E G Y

NAMING

PRODUCT DESIGN

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INTEGRATED MARKETING TEAM SCORECARD

Choice of teams Promise of consistency Ownership of brand

Difficult to manage

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IN REALITY, COLLABORATIVE NETWORKS AREN’T THAT SIMPLE.

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and

that’s OK.
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Collaborative networks are not new.

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A successful model has existed for years.
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Like building a cathedral, making a movie takes hundreds of collaborators.

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JOEL DARTMOUTH KELLY MARIN TREVOR CARMICHAEL JOHN T. LANDON SHARON BONDLY PAUL DERAIN JACQUES SOUVERAIN MICHAEL BRAND STEVEN GOLDSTEIN TRENT LOCKART JACKSON BARNES JOSEPH AKIO TERENCE BRADLEY MO DERENI ROBERT UNDERHILL KEN SILVER Librarian HILARY PROPRIATO Field Officer MICHAEL O. KELL Bus Driver HECTOR ABONDAS Night Guard NORMAN BRIER Meter Maid STACY BRECKSTEIN First Detective JOE KALEY Second Detective BRIAN BELSEN Beat Cop ABRAHAM LENDER Parking Cop T. T. MCBRIDE Helicopter Pilot VAN DERICKE First Old Man JOHN R. CARLSON Second Old Man VICTOR AMOS Tax Collector SEAN O' KENNA Stunt Coordinator JEFFREY ROCKEN Assistant Stunt Coordinator DARREL TOM Smoocher Boy Agent Sims Agent Townsend Agent Kruzic Dijon Jean-Michel Keynes Corelli Johnston Billie Guards Carlos GEOFF WRIGHT MARK CONTADINA Mariana SUE SKENNIAN Ajax CHARLIE MARQUETTE Sgt. Santos VICTOR BANERAS Carter F. C. CAMERON Smoocher Boy TELLIE PANOPOULIS Agent Sims MARTIN AIRES Agent Townsend STEFAN C. KAISER Dijon BILL MOORE Stunts STEVE ADRIAN BOB CARTER MICKEY DISANTIS MIKE FLANAGAN GEOFF IPSWICH BARRIE LAWRENCE JACKIE MACDOUGAL JAMES PETRICKE MARY STAUFFACHER CORNELIA THERRIEN RAUL VALERIA BENJAMIN BARKELEY GORDON COLERIDGE JILLIAN DRUCKER BILL GEORGE MICHAEL KANTER TERRY LEVINSON GREG NEVILSON PETE POLSON FREDDIE STEEN JEREMY TRICKETT RONALD DEAVER-WEBB Hong Kong Kung Fu Team YUAN Tiger CHU CHEN Dragon SEN TONY BEAUJOLAIS IVAN DEVERSON JOE EVANS JULIA HARRISON KENNETH KITTRIDGE TED MARSTEN BOB OSBORNE RAY TELSON CAB UPTON PETER YOUNG ROBERT G. RUNYAN Stunt Doubles

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Manners and Modes Supervisor FRANCIE MAS Storyboard Artists CAREN THOMASON MIGUEL TRASERO FRANCES CHU PEDRO BOGANILLO Art Department Researcher NUALA CORIAN Art Department Coordinator TRACY COLLISTON Conceptual Designer SERGIO MOLO Graphics BENJAMIN HIRASUNA Illustrator STEPHANIE RAND Set Designers GERI DEMONDE STELLAN GRETZKE MADELINE BARR LANCE DUNSTABLE MARCO DIPAOLO DEN MCENERY Set Decorators LISA BARHAM DRU LEE MANNING CARRIE DUNE Script Supervisor MARIE BELLEAU Camera Operator PAUL POLITO Steadycam Operator ROCK HANDLER 1st Assistant Camera GORDON ALBRIGHT 2nd Assistant Camera CRIS MORTEN Still Photographer BARRIE M. HORST Sound Recordist JACOB TREIB Boom Operators HORACE STEIN THOM CARRABINE Video Operator ART KELLEHER LUCIANO PROPRIO Props DAVID BELL Property Master ZUZU MANHEIM KAREN CAROLUS J. D. WHEATLY Action Vehicle Coordinators WILLIAM TREVANT Gaffer STU JEFFERSON Best Boy JOSH KNIPPLE Rigged Gaffers COLIN FARRINGDON PETER STANISLOV KIT GOINES BENNIE JAMESON RICK DEMIS STANLEY FREY G. G. NEWMAN Key Grip DAVID WEINBERG Head Grip RICKY MONROE Dolly Grips WILLI STRASBURG STAN BENTON CHARLES CRIVORN NORM LOFGREN VIC DOLAN GIORGIO VIVATO Rigging Grip TEL STEPHENOPOLIS Make-up Artists TRINI GONZALEZ MARCI STEIN BELINDA MCNAIR CARI DUNN MICHELLE TONAS ROBERTO BELLINI

Dig Composite Supv Digital Compositors Background Artists CGI Lead Animators CGI Animators

TIM CURRIE DONALD VERES DAVID HUSSEIN BRIDGET QUESTED FRANCESCA ROTI GREG STONE WILL SUTTON INGE JOHANSSON DREW CRAIN URSULA BIERSCH

VISUAL LOGIC, LLC VFX Supervisor Programmer System Admin Production Admin Production Aide Producer Scene Graphics CGI Artist Coord CGI Artists CGI Designer Compositors JARED BAGMAN KAROL CONST RANDY HARDWICK MAL GERICKE CASS MONAHAN PATRICE ARNEM PEDRO CARILLO SANDY PRIESTLY JOHN LANGORF BRENDA CALE MARK THOMAS KYLE M. SULLIVAN PATRICK MAHONEY STAV PROMIDES MARGRIET BILL TANIA SHAUB BENNET JURIAN CHUCK TRALIK PENNY GARCIA GRAYSON TRUE SLIM DELGADO BATOUTAHELL, INC PACIFIC DREAMS, LLC ARTISTIC RECORDS, INC. JAY FLAMMER

I/O Supervisor Assorted Visual Effects Color Toner Negative Cutter Titles Designed by Opticals by Soundtrack Album on Microscopic Cinematography by

`The Producers Wish to Thank the Following NASA CITY OF NEW YORK THE MARITIME CENTER OF SYDNEY LOS ANGELES POLICE THE CITY OF BEND, OREGON SULTAN OF BRUNEI Filmed on Location in CAPE KENNEDY NEW YORK CITY SYDNEY, AUSTRALIA LOS ANGELES, CALIFORNIA BEND, OREGON

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Filmed with OMNIVISON Cameras and Lenses Color by COLORLAB, INC. Prints by VISTACHROME

IN THE 1990s,

CREATIVE COLLABORATION SPREAD TO BRAND-BUILDING.

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EXAMPLE:

The Netscape brand was built on the Hollywood model.

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MYTH:

Wide experience leads to deep insights.

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FACT:
Deep insights come from deep experience.

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WHY?

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Because

the mathematics of collaboration
is nothing less than

MAGIC.

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DISCIPLINE 3: INNOVATE

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Execution—
not strategy—is where the rubber meets the road.

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CREATIVITY IS WHAT GIVES BRANDS THEIR TRACTION IN THE MARKETPLACE.

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Why do companies have so much trouble with creativity?

Because creativity is right-brained, and strategy is left-brained.

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A

B

C

D

STRATEGIC THINKING

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V

Z

D

Q

CREATIVE THINKING

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THE REASON THE BEATLES WERE WILDLY SUCCESSFUL IS BECAUSE “THEY NEVER DID THE SAME THING ONCE.”

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QUESTION:

How do you know when an idea is innovative?

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ANSWER:

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WHEN IT SCARES THE HELL OUT OF EVERYBODY.

TOO PREDICTABLE NO SURPRISE NOTHING NEW

= = =

NO SURPRISE NOTHING NEW NO VALUE

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To begin with, the brand needs a

stand-out name.

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The seven criteria of a stand-out name:
1 DISTINCTIVENESS

2 BREVITY

3 APPROPRIATENESS

4 EASY SPELLING AND PRONUNCIATION

5 LIKABILITY

6 EXTENDABILITY

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7 PROTECTABILITY

A GREAT

NAME

deserves GREAT

GRAPHICS .

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NEWS
LOGOS ARE DEAD. LONG LIVE ICONS AND AVATARS!

FLASH!
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An ICON is a name and visual symbol that suggests a market position.

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EXAMPLE:

CBS. The network for “eye-popping” television.

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An AVATAR is a brand icon that can move, change, and operate freely in various media.

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EXAMPLE:

CINGULAR : The “self-expression” cellular service.

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For products that sell at retail,

the package
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is often the best and last chance to make a sale.

The hardest-working packages follow a natural reading sequence.
THE SHOPPER :
1

Notices the package Asks “What is it?” Wonders “Why should I care?” Wants to be persuaded Needs proof

2

3

4

5

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By presenting information to match this sequence, a package can sell the product more effectively.

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If you communicate with your customers ONLINE , your website needs to follow a SIMILAR reading sequence, one that supplies users with ONLY the information they need, instead of trying to squeeze EVERYTHING onto the home page LIKE THIS and making your users do ALL the work, which will undoubtedly cause them to LEAVE, when all you really have to do is ask yourself this SIMPLE QUESTION :
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Does our website look

f at
in this dress?

Too many websites are bloated with irrelevant information.

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WHY?

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1 TURFISMO
(Every department wants to be on the home page)

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2 FEATURITIS
(Inexperienced communicators believe more is better)

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3 TECHNOPHOBIA
(Experienced communicators resist new media)

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QUIZ:
Which of these sites looks easier to use?

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DISCIPLINE 4: VALIDATE

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VALIDATION

means bringing the audience into the creative process.

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SENDER SENDER

MESSAGE MESSAGE

RECEIVER RECEIVER

THE OLD COMMUNICATION MODEL WAS A MONOLOGUE.

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SENDER SENDER

MESSAGE MESSAGE

RECEIVER RECEIVER

THE NEW COMMUNICATION MODEL IS A DIALOGUE.

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QUESTION:

How can you test your most creative ideas BEFORE they get to market?

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HINT:

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Not with large quantitative studies or focus groups.

QUANTITATIVE STUDIES BURY THE PROBLEM IN HEAPS OF UNHELPFUL DATA.

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FOCUS GROUPS WERE INVENTED TO FOCUS THE RESEARCH, NOT BE THE RESEARCH.

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THE BEST TESTS ARE

CHEAP,

QUICK,
AND
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DIRTY.

Better a rough answer to the right question than a detailed answer to the wrong question.

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If the names and graphics of two trademarks are better when swapped, then neither is optimal.

EXISTING TRADEMARKS

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WITH NAMES SWAPPED

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CHEAP-QUICK-DIRTY TEST 2:

The HAND TEST is a proof for a distinctive voice.

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If you can’t tell who’s talking when the trademark is covered, then the brand’s voice is not distinctive.

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CHEAP-QUICK-DIRTY TEST 3:

The FIELD TEST is a proof for any concept that can be prototyped.

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If your audience can’t verbalize your concept, you’ve failed to communicate it.

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SHOPPERS CHARACTERIZED THE PACKAGE CONCEPT ON THE MIDDLE-RIGHT SHELF AS “A FASTER PENCIL.”

BINGO.

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Field tests measure five things:

1 DISTINCTIVENESS

2 RELEVANCE

3 MEMORABILITY

4 EXTENDABILITY

5 DEPTH OF MEANING

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TESTING MIGHT HAVE SAVED SOME OF THESE COMPANIES FROM THE GREAT SWOOSH EPIDEMIC.

HAS THE GLOBE BECOME THE NEW SWOOSH?

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DISCIPLINE 5: CULTIVATE

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Business is a process, not an entity.

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A living brand is a pattern of behavior, not a stylistic veneer.

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Brands are like people.

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C.

D.

E.

IF PEOPLE CAN CHANGE THEIR CLOTHES WITHOUT CHANGING THEIR CHARACTERS…

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WHY CAN’T BRANDS?

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IF A BRAND LOOKS LIKE A DUCK AND SWIMS LIKE A DOG, PEOPLE WILL DISTRUST IT.

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So let’s say you’ve

DIFFERENTIATED,

COLLABORATED,

INNOVATED,
AND VALIDATED.
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+
YOU’VE ADDED THE LEFT BRAIN TO THE RIGHT BRAIN.

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+ +
YOU’VE USED TESTING TO BANISH THE FEAR OF STUPID.

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Your brand is now NUMBER ONE in its category.

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What’s your next move?

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PASS OUT THE COMPASSES.

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What’s a compass?

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A continuing brand education program.

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The more

D I S T R I B U T E D
a brand becomes,

the stronger its management needs to be.

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What your company needs is a CBO, or CHIEF BRANDING OFFICER .

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THE CBO FORMS A HUMAN BRIDGE BETWEEN LOGIC AND MAGIC, STRATEGY AND DESIGN.

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C U LT I V AT I O N

D I F F E R E N T I AT I O N

V A L I D AT I O N

C O L L A B O R AT I O N

I N N O V AT I O N

BY MASTERING THE FIVE DISCIPLINES OF BRANDING, THE COMPANY CREATES A VIRTUOUS CIRCLE.

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WITH EVERY TURN AROUND THE CIRCLE, THE VALUE OF THE BRAND SPIRALS HIGHER.

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YOU BUILD

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A sustainable competitive advantage.

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ABOUT THE AUTHOR

Marty Neumeier is president of a San Francisco-based brand consultancy, Neutron LLC. Neutron supplies the “glue” that holds brands together: brand education programs, seminars, workshops, creative audits, process planning, and more. Visit www.neutronllc.com.

Need books for your branding team? Bulk discounts on the THE BRAND GAP are available for educational and corporate groups. Contact BECKY.MORGAN@PEACHPIT.COM.

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