Philippine Retailing Newsletters 2018 PRA Newsletter 2018 Q3 | Page 15

3RD QUARTER 2018 How Disruption Can Fuel Brand Growth Every brand has the power to disrupt business as usual provided it has a clear idea of what will make the most difference given its status and context. Too many brands give up the opportunity for growth by assuming that differentiation is impossible. Established brands should learn from the disruptors that are changing our world and create a little disruption of their own to drive growth. But to effectively identify and manage opportunities for disruption, it’s important to understand exactly how people think, feel and behave in relation to a brand. Marketers need up-to- the-minute information on how potential customers view their brand and its activities to have the confidence they need to disrupt and grow brand value. Kantar Millward Brown proposes some strategies that can take to disrupt and drive growth: Get out of the Comfort Zone Disruptive brands are seen to be extremely different from their competition and so too are the brands that grow over time. In both cases difference is what provides a brand the opportunity to disrupt. Any brand can be disruptive, provided it has the courage to do something different and meaningful. Established brands should never stop trying to identify the next big innovation, but, in established categories, even relatively small changes can enhance the consumer experience and add significant value to customers’ lives, in turn growing the value of the brand. But disruption does not have to be a ‘thing.’ Simply changing the way a brand communicates with potential customers can allow them to see the brand with fresh eyes and unlock new growth potential. Adidas, Subaru and Snickers have each reaped significant benefit from changing their communication strategy and connecting with consumers in a new and different way. Know What Needs to Change The challenge for a well-differentiated brand is to identify what will make it more salient and meaningful to potential consumers. In China, research for a new smart TV brand identified that it was perceived as different from the competition but the brand was underperforming on Meaning and Salience. Kantar Millward Brown recommended that the brand focus on its advanced technology. This Feature provided the best opportunity for the brand to impact willingness to buy while also helping to improve quality perceptions. The client acted on the advice and the new campaign drove a 42% increase in market share. Know Who Values Your Brand When it comes to profit, the biggest disruptive growth opportunity may come from targeting the right customers, and then curating perceptions of meaning and difference to drive up the brand’s perceived value. Subaru’s path to growth in the US began by identifying driver types willing to pay a premium for all- wheel-drive cars, and creating ads that would appeal to each group. But by 2005, most major competitors offered an all-wheel-drive option and Subaru needed to change its strategy. The ‘Love. It’s what makes a Subaru, a Subaru.’ campaign was introduced in 2006, along with a program to improve the dealer experience and expand the dealer network. The emotionally based advertising focused on longevity, safety, versatility and adventure. But the stories were as much about the owner and their family and pets as they were about the cars. This unique approach has helped grow perceived differentiation, meaning, market share and, most importantly, it helped make Subaru one of the most profitable automotive brands in the US. Knowing what needs to change, both in terms of behaviors and attitudes, is important if a brand truly wants to disrupt. That objective then informs what types of marketing activity are most likely to make a difference and what needs to be measured to judge success. Use Consumer Insight to Inspire Disruption Bringing together multiple data sources, both behavioral and attitudinal, is fundamental to identifying the best growth opportunities. Changing consumer perceptions is not the only path to growth. For example, the Clear shampoo brand increased its e-commerce sales in Japan by 171% by switching from a B2C model to a B2B model. The brand, which ranked 12 th in its category by consumer purchase intent, faced a major challenge if it was to grow by traditional consumer marketing. Clear’s solution was to change the playing field. Rather than selling direct to retailers for consumers, the brand promoted its Headgear Cover Plan, encouraging businesses to supply Clear shampoo to employees required to wear protective headgear in the workplace. In this case, instead of data simply confirming the size of the problem it acted as a catalyst to inspire a whole new approach to how the brand was sold. PHILIPPINE RETAILING Invest to Make a Difference Simply spending more will not produce disruptive returns. A great creative idea that fits the brand and the opportunity will be the best way for many brands to disrupt the status quo. And while marketers are hostage to the product innovation cycle, the impact of a new creative approach may come faster. A strong, creative campaign will leverage spend to create far more impact. And whatever form an execution takes, effective creative development and testing before launch can ensure it is likely to achieve the desired objectives. It is also important for marketers to scale their budget according to the task at hand. Far too many marketing initiatives fail simply because too little is invested to ensure campaign success. Research designed to understand the relative impact of different media channels, when combined with reach and cost data, can help shape cost-effective integrated media campaigns that leverage a great creative idea to best effect. Learn Fast to Achieve Better Returns A brand can have a great product or idea and in- market execution can still fail to disrupt. Marketers need to behave as if they are in perpetual beta, which means fast feedback is essential so they can quickly identify opportunities to course correct. Even the most optimistic marketers want quick reassurance that their campaign is a winner. Sophisticated analysis of search and social data, combined with timely survey data, can quickly identify if a campaign is on track for success. Continuously improve your marketing effectiveness Today’s success is an opportunity to improve current marketing effectiveness while looking for the next disruptive growth opportunity. But to do so, marketers must measure what is happening to the brand and the consumer response in-market. Existing studies of brand and advertising performance provide the data to optimize future spend. Analysis of previous campaigns can help identify which media channels are most productive by brand, category and country, improve digital ROI or bridge the ostensible gap between behavior and attitudes to gain a holistic understanding of brand growth. (Kantar Millward Brown, 2018) View the full report here: http://www.millwardbrown. com/brandguidance/branddisruption/ 15