Brand X Strategic report BrandCompass
BrandCompass
BrandCompass measures the personality of brands in a standardized way. The results of this measurement are depicted in a visual mapping, organized in 8 personality dimensions. Starting from the dynamic composition of a brand’s personality and the brand’s perception by different subgroups, a strategic analysis and recommendations are produced to adequately answer the research question. For further information on the BrandCompass methodology, we kindly refer you to the iPad app that can be downloaded for free in the App Store.
Introduction and research question
Today, Brand X is distributed by supermarkets, a policy that naturally boosts sales volumes. In its sector, the brand is among the most premium brands in the supermarket assortment. Of other premium brands, many are offered in specialty stores. Brand X isn’t considering this distribution channel, but aims to recruit the consumers who traditionally purchase products in specialty stores as well. Thus broadening the target would push the sales volume upwards. Besides, the brand perception can be impacted positively. Brand X wishes to better understand whether this strategy is realistic and which marketing efforts are necessary to succeed. This report, in which the BrandCompass results are analyzed, aims to support Brand X in this strategic decision.
2
Positioning of the brands in X’s sector The brands in this sector are widely spread on the affirmation-belonging dimension (from left to right) of BrandCompass. On the release-control dimension (from top to bottom), the spread is less pronounced. Few or no brands are associated with ‘Vitality’ (red), ‘Pleasure’ (orange) or ‘Conviviality’ (yellow). Most brands in the sector are located in the lower-left part of BrandCompass. In this area they have a positioning displaying status and self-confidence (A, C, E, … located in the purple ‘Power’ pie) or expressing ambition, elegance and style (X, F, G, … located in the green ‘Superiority’ pie). Other brands in the sector are positioned in the mid-right part of BrandCompass. These brands are perceived as supporting women and making them feel accepted (H, I, … located in the brown ‘Belonging’ pie) or relieve a feeling of fear and uncertainty by positioning itself as discrete and trustworthy (J, K, … located in the blue ‘Security’ pie).
3
Position of specialty store brands Quite remarkably, all brands that are distributed in specialty stores have a comparable positioning. More specifically, we’re talking about A, B, C, D and E. In all of these brands’ personality, the ‘Power’ dimension, the purple pie referring to the strive for societal status and success, is strongly present. Buying products offered by specialty stores lends a social uplift to the user, who communicates self-confidence and a strong appearance to others by this purchase act.
4
The brand pie charts denote the personality composition of the individual brands. A brand’s location on the sector mapping is the midpoint of the different personality dimensions. The more a certain personality dimension is present in a brand’s personality, the more the brand is ‘drawn’ to that dimension in the sector mapping. As can be witnessed in the brand pie charts below, the ‘Power’ dimension is prevalent in the perceived personalities of all specialty store brands. Besides, the green ‘Superiority’ dimension and, to a lesser extent, the red ‘Vitality’ and orange ‘Pleasure’ dimensions are strongly present in the specialty store brands’ personality.
A
B
PLEASURE CONVIVIALITY BELONGING SECURITY CONTROL SUPERIORITY POWER VITALITY
C
D
5
E
Position of the supermarket brands When we look at the perceived positioning of supermarket brands, it’s clear that not all brands in this sector have the potential attract specialty store consumers. And it’s their personality that inhibits them to. All brands in the mid-right part of BrandCompass have too little ‘Power’ in their personality to successfully reach this target group.
6
H, I, J and K are typical examples of these supermarket brands. As their individual pie charts witness, the personalities of these brands differ essentially from the positioning that is expected from a specialty store brand. Indeed, the purple ‘Power’ and, to a lesser extent, green ‘Superiority’, red ‘Vitality’ and orange ‘Pleasure’ dimension are insufficiently present in these brands’ personality. A profound rebranding exercise would be needed in order to realize this transition.
PLEASURE
H
I
J
K
CONVIVIALITY BELONGING SECURITY CONTROL SUPERIORITY
POWER VITALITY
7
Position of Brand X Brand X, to the contrary, does carry the potential to attract specialty store consumers. First of all, the brand is especially characterized as innovative, elegant and classy (the green ‘Superiority’ pie, associated with uniqueness and ambition). However, this positioning doesn’t contradict the prototypical personality of specialty store brands, in which the ‘Power’ personality trait is strongly present. It rather complements it. Besides, the typical personality traits of specialty store brands (strong presence of the purple ‘Power’ pie and – to a lesser extent – the red ‘Vitality’ and orange ‘Pleasure’ pies) are already moderately present in the perceived personality of Brand X. Furthermore, these typical traits can be further developed without sacrificing the brand’s fundamental positioning (strong presence of the green ‘Superiority’ pie). Finally, the BrandCompass analysis indicates that consumers and fans of Brand X allocate a larger share of ‘Power’ to the brand’s personality than on average (22% for the brand’s fans vs. 17% for the total research population). This points out that the move in the direction of the purple ‘Power’ pie is quite natural. The more familiar one is with the brand, the more one associates the brand with ‘Power’.
12
12 5 6
17
4 7 36
8
Brand relationship Brand X Next to measuring a brand’s positioning, BrandCompass also provides insight in the sales volume potential of a brand. The tool does this by estimating the purchase intention of different target groups. For Brand X, the results are very promising. Both non- and ex-consumers are willing to re-embrace the brand. In order to reach this goal, boosting the brand awareness is key. Current users are greatly satisfied with the brand. Below you can find the detailed results of this brand exercise: • 31% of the research population is familiar with Brand X and is thus able to formulate an opinion on the brand. • 50% of those who are familiar with the brand are potential consumers. 25% of them are effective consumers. • 2/3 of those who are familiar with the brand, but don’t buy it, are theoretically convertible. • Half of the brand’s consumers are fans as well. • In the research population, there are no unsatisfied customers (who threaten to forsake the brand). • 3/4 of the ex-consumers can be won back. 4
3% Fans
7% Consumers 15% Potential 31% Relevant N = 1137
9
When zooming in on the position of the different target groups in BrandCompass, we learn that the perception of fans, consumers, ex-consumers and non-consumers varies significantly. Brand X fans and consumers attribute a larger portion of ‘Power’ and ‘Superiority’ to the brand (resulting in a position closer to the border of BrandCompass indicating a more extreme personality). Ex-consumers also give a large portion of ‘Power’ and, to a lesser extent, ‘Superiority’ to the brand’s personality. Nonconsumers, however, seem to have a less pronounced perception of the brand (resulting in a position closer to the center of BrandCompass indicating a more mixed personality).
Besides, on the next page you can learn more on the purchase behavior of these different target groups. First of all, we see that consumers of Brand X also buy products of the brands I (58%), H (48%), F (25%) and K (20%). Secondly, ex-consumers of the brand, currently purchase mainly I (49%), H (46%), C (14%) and L (13%). Finally, non-consumers mainly purchase I (62%), H (45%), L (12%) and A (12%). Important to note, also the relative market share and brand awareness of the different brands should be taken into account.
10
Of which of the following brands do you buy products? 0%
10%
20%
30%
40%
I
49%
60%
L
13% 12%
A
5%
12% 8% 11%
J
15%
7%
C
14%
7%
3%
9% 7%
E
12%
9%
B
11%
9%
K
7%
13%
10%
20%
4%
D
6% 5%
4% 5% 4%
M
5%
G
9%
2%
1%
25%
7%
Buyer n=84
Ex-Buyer n=125 11
70%
58%
48% 46% 45%
H
F
50%
Never-Buyer n=138
62%
Recommended media investments for Brand X As mentioned above, broadening the target group towards attracting traditional specialty store consumers as well would boost the sales volume and positively impact the brand image. As also mentioned above, the BrandCompass analysis indicates that strengthening the ‘Power’ dimension in the brand’s positioning will help to make this happen. Now it’s time to look at the media that should be deployed in order to realize this positioning. When considering the magazine media, investments in the Marie Claire brands, Elle brands and Feeling/Gael are recommended. As can be noticed in the individual brand pie charts, the ‘Power’ dimension is strongly present in the personality of all these brands. For the Marie Claire and Elle brands, whose personalities contain 36 to 63% of the ‘Power’ personality trait, this is most obvious. Nevertheless, also the Feeling/Gael brands can be recommended, whether or not in combination with the Marie Claire or Elle brands. Indeed, the purple ‘Power’ dimension is less present in these brands, but is nevertheless their most characteristic personality trait. In order to attract traditional specialty store consumers, Brand X should boost its ‘Power’ personality. However, in order to maintain its success in supermarkets, the brand should also preserve its individuality, characterized by a strong presence of the green ‘Superiority’ dimension. Summarized, Brand X wants to complement its strong supermarket identity by a new specialty store identity, but surely doesn’t want to replace it. Since it’s key that Brand X doesn’t become a me-too of the specialty store brands but sufficiently preserves its ‘green’ identity, we recommend to invest in the Feeling/Gael brands, whether or not in combination with the Marie Claire or Elle brands. The Marie Claire or Elle brands threaten to incorporate the brand too much, whereby Brand X wouldn’t complement its strong supermarket identity with a new specialty store identity, but ‘overwrite’ it. Currently, Brand X strongly invests in Libelle, a brand whose personality shares a high proportion of the green ‘Superiority’ dimension with Brand X. In order to retain its top-of-mind and brand awareness with its current supermarket consumers, we surely advise to continue this partnership. Investing in Libelle allows the brand to reach a large audience and strengthen the green ‘Superiority’ dimension in the brand’s personality.
12
13
Conclusion & Recommendations Brand X is perfectly able to attract consumers that traditionally purchase products in specialty stores. In order to reach this goal and thus boost its sales volume and positively impact its image, a slight shift in its personality is needed. More specifically, the ‘Power’ personality dimension, associated with societal status and self-confidence, should be further stressed. From all different media types, only magazines are inherently capable to sharpen this personality trait. In particular, investments in upscale monthlies are recommended. When considering the Sanoma brands, we strongly advise to partner with Feeling/Gael. Marie Claire and Elle constitute an alternative.
Addendum: BrandCompass brand values
14