Advertising isn t everything

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1 Advertising isn t everything Unleashing a brand's potential by identifying and measuring the hidden gems that can seriously drive growth Presenters: Kathrine Starke Catherine Burton 1

2 Why? As research partners, we need to give our clients insightful value-add that will help them maximise their limited resources And make a difference to their bottom line Clients spend fortunes on advertising, but all to often it falls on deaf ears Although advertising is an essential cost of business, and a classic route to creating desire, consumer choices are ultimately governed by external market factors 2

3 Discovering the gems requires an analysis of current marketing thinking Understanding the gems requires a look at seven hypotheses that demonstrate why Advertising isn t everything and why a new approach is needed 3

4 The Consumer is King Satisfying consumer needs translates into brand success BUT he / she operates within a kingdom 4

5 The kingdom: meet market factors Market factors are elements that shape the consumer s kingdom, and that can govern behaviour and influence the ultimate purchase decision Market Factors are starting to make inroads in research models And their value is evident when clients come asking for it 5

6 The evidence 6

7 H 1 : Market factors exist Definition: unanticipated situational factors that may change or influence the ultimate purchase decision Positive Negative Disconnect between desire and behaviour Not all market share is equally good! Uncover a ticking time bomb vs. a hidden gem 7

8 8 Case Study: Toothpaste in Asia Desire Market factors Brand Equity

9 9 Case Study: Mobile phones in Africa Desire Market factors Brand Equity

10 H 2 : Market factors can enable a brand to unleash growth potential But you need to know where to focus and on what 10

11 Case Study: Retail Opticians UK A challenger brand; desire was not the issue: Accessibility of stores was key 11

12 Case Study: Cider launch Europe A cider brand extension failed to get market traction in year of launch Distribution and securing key ingredients were paramount 12

13 H 3 : Market factors are different in different categories Beverage Tooth paste Health care Mobile Phones Banks Auto Beer Media Retail Durables Accessibility 43% 24% 21% 32% 34% 30% 44% 31% 40% 30% Product Range 23% 34% 18% 19% 19% 22% 14% 22% 25% 32% Price 11% 12% 16% 12% 21% 20% 12% 19% 12% 14% Promotion 13% 17% 12% 11% 4% 9% 10% 6% 12% 10% Purchaser 8% 12% 12% 3% 4% 5% 13% 7% 3% 3% Experts 1% 1% 5% 5% 3% 6% 7% 7% 4% 7% Lack of Information 0% 0% 8% 9% 5% 6% 0% 4% 4% 2% Contracts 0% 0% 1% 8% 6% 2% 0% 1% 0% 1% Regulations 0% 0% 8% 0% 5% 0% 0% 2% 1% 1% 13

14 Case Study: Radio station Thailand (Not so) Easy listening radio station in Thailand suffered from interrupted signal 14

15 Case Study: Bank in the UAE A case of forbidden love: contracts with employers dictate where employees may bank 15

16 H 4 : The brand size determines if market factors work for or against a brand The law of double jeopardy Market position of brand Average brand desire Average market factor score 1st nd rd th th Normative data showing brand desire and market factor scores for brands of different positions in the market (FMCG category). 16

17 H 5 : Market factors can be used in sales incentive programs Application of market factors is more than just understanding what they are and how much they contribute to a brand Providing a tangible way of aligning employee effort and company ambition with metrics that count 17

18 H 6 : Market factors need to be about ability to purchase This is about assigning responsibility to the appropriate, relevant departments within the business for better, more optimal use of resources 18

19 H 7 : Managing communication, and building desire is still critical to the success of a brand Without the solid underpinning of brand desire, a brand is nothing, and has nothing Although market factors play an important role and affect and shape consumers ultimate behaviour, brand desire remains an important factor in terms of driving market share 19

20 T1 T2 T3 T4 T5 T6 Jan 2012 Case Study: Car Manufacturer 15 Point A: Desire for the brand was high after the new campaign and model launch Seen Comms Not seen Comms Point D: Gradual recovery, following new communications approach 10 Point B: Rapid and radical decline in AE following recalls 5 0 Point C: Almost no change in AE amongst those who had not seen the campaign 20

21 So what does this mean? Brand growth f Focusing on desire & Managing market factors Strategic focus for a brand + best use of precious resource = measuring and managing both desire and market factors 21

by market factors QED: To better serve your King (the

22 Conclusion Advertising is key it creates awareness and fuels desire - BUT consumers ability to act is influenced by market factors QED: To better serve your King (the customer), you need to understand (and manage) their kingdom 22

23 Thank you Presenters: Kathrine Starke Catherine Burton 23

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