Marketing Magazine

12

FEATURE

WHAT MAKES THESE BRANDS

BETTER THAN YOURS? How does a brand get to be number one?

What does being ‘the best’ even mean and should you care? And when will we see a local in the list?

MARKETING | DECEMBER/JANUARY 2014 | www.marketingmag.com.au

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F

or the first time in 13 years Coca-Cola has been knocked off the top spot on the Interbrand ‘Best Global Brands’ list for 2013. Its successor is none other than tech giant Apple, arguably one of the most discussed and influential brands of our time.

Of the top 10 brands in the list, seven are technology brands, which raises the question: is the brand success of the likes of Facebook and Google just a product of right place, right time on the back of the information revolution? Or do we owe them more credit?

Contradicting the technology bubble argument, however, are brands like Nokia, which has dropped from 19 on the list all the way down to 57 – a drop of 63 percent – and Nintendo, which has fallen from number 56 to 67. BlackBerry left the top 100 altogether.

Interestingly, the top 100 brands in the list are now the most valuable they have ever been, collectively worth US$1.5 trillion – an 8.4 percent record increase over the total value of the 100 ‘Best Global Brands’ in 2012.

But what distinguishes the brands that make this list from the ones that don’t? A combination of leadership, innovation and customer engagement.

Brand has long been considered the most valuable asset for any marketing-led organisations.

As an executive of The Coca-Cola Company once famously said: “If Coca-Cola were to lose all of its production-related assets in a disaster, the company would survive. By contrast, if all consumers were to have a sudden lapse of memory and forget everything related to Coca-Cola, the company would go out of business.”

Suzie Dale, head of Nielsen Pacific’s Brand Practice Group, explains why brand is still more valuable than ever. “In today’s tough environment, where specials and price wars are the norm, it would be easy to assume brands don’t matter.

“However, brands matter more now than ever before. Strong brands are the only winners, and marketers need to ensure their focus is continually on building a strong brand,” she says.

Nielsen research shows that strong brands command 40 percent more loyalty and achieve at least three times more volume than weaker brands. There is

In today’s tough environment, where specials and price wars are the norm, it would be easy to assume brands don’t matter.

a vast range of triggers that create strong brands across different categories.

“What links strong brands is their ability to take powerful emotional shortcuts to our senses. They convey unique aspects that cling to our consciousness and they own a larger share of our mind space. For example, if you think of Nike or Corona, the tick or a slice of lime and Summer time respectively arise in our minds.

“The thing that makes a brand valuable is its ability to own mind share. Owning mind share is directly linked to owning market share and driving sales.”

MEASURING THE INTANGIBLE? According to Dale, a brand is the physical representation of a product or service by which it is known and easily identified. The core of the brand is the DNA of an idea and the essence of the specific product or service that is offered.

“Much like an atom, a brand can be much more than the sum of its physical parts. The total brand experience expresses the story and aspiration of a product or service, and creates a conversation with the consumer. It articulates this at every touch point and through every interaction,” she says.

Director at brand agency Hulsbosch, Jaid Hulsbosch, has a different view. He suggests a brand is valuable if it has the ability to attract and affect customer choice in its sector.

“We acknowledge that a brand is the sum of both its intangible and tangible elements. In short, a brand is simply a promise.”

He adds, “It should be noted that value drivers differ across industries and that some demand higher investment in tangible assets than others – technology being a good example.”

There is a THE IMPORTANCE OF LEADERSHIP perception Damian Borchok,that Australia and New Zealand CEO of Interbrand, publishes there is which a lack of the ‘Best Global Brands’ report annually, says the theme that appeared from fundamental soft this year’s research is leadership, though perhaps not skills that will as we know it. He saysinhibit there are a few different ways that leadership plays out at ground level. their potential for “Because of the dynamic environment [of leadership. business] now, the fact that we work in such a complex fast-moving environment, any organisation that takes its eye off their leadership position is going to suffer

www.marketingmag.com.au | DECEMBER/JANUARY 2014 | MARKETING

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16

DIGITAL TRANSFORMATION RESEARCH BY MIT SLOAN MANAGEMENT REVIEW AND CAPEGEMINI CONSULTING SOUNDS THE WARNING BELLS: ADOPT DIGITAL ADVANCEMENTS – AND DO IT EFFECTIVELY – OR FACE OBSOLESCENCE. BUT IN WHAT AREAS OF BUSINESS DOES DIGITAL TRANSFORMATION HELP, WHY IS IT IMPORTANT AND WHAT’S HOLDING IT BACK?

KEY AREAS OF IMPACT WHERE DIGITAL TRANSFORMATION HELPS IMPROVE THE CUSTOMER EXPERIENCE

ENHANCE EXISTING PRODUCTS AND SERVICES

LAUNCH NEW PRODUCTS AND SERVICES

ENSURE CROSS-CHANEL CONSISTENCY

CUSTOMER EXPERIENCE

AUTOMATE OPERATIONAL PROCESSES

ENHANCE THE PRODUCTIVITY OF WORKERS

IMPROVE INTERNAL COMMUNICATION

OPERATIONAL IMPROVEMENTS

EXPAND REACH TO NEW CUSTOMERS AND MARKETS

LAUNCH NEW BUSINESSES DEVELOP NEW BUSINESS MODELS

TRANSITION PHYSICAL PRODUCTS/SERVICES TO DIGITAL PRODUCTS/SERVICES

BUSINESS MODEL CHANGE

NO. OF RESPONSES 0

200

400

600

800

1000

1200

1400

1600

1800

2000

SPEED IS OF THE ESSENCE

GREATEST ORGANISATIONAL BARRIERS

78% FEEL ACHIEVING DIGITAL TRANSFORMATION WILL BECOME CRITICAL IN NEXT TWO YEARS.

81% SAY THEIR ORGANISATIONS ARE ALREADY TRYING TO ACHIEVE DIGITAL TRANSFORMATION, BUT 63% SAY THE PACE OF CHANGE IS TOO SLOW. WILL BECOME CRITICAL THIS YEAR

WILL BECOME CRITICAL WITHIN 2 YEARS

33% WILL BECOME CRITICAL IN 3 OR MORE YEARS WILL NEVER BE CRITICAL

30%

LIMITATIONS OF IT SYSTEMS

IT’S ALREADY CRITICAL

5%

33%

NOT ENOUGH FUNDING

18%

13%

39%

NO SENSE OF URGENCY

27%

28%

UNCLEAR ROLES/RESPONSIBILITIES

28%

LACK OF VISION

27%

UNCLEAR BUSINESS CASE

24%

UNCOORDINATED IMPLEMENTATION

19%

CULTURE AVERSE TO CHANGE

16%

NO LEADERSHIP SKILLS REGULATORY CONCERNS

DO NO T CRO

SS

9%

MARKETING | DECEMBER/JANUARY 2014 | www.marketingmag.com.au

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HOW DIGITALLY MATURE ARE MOST COMPANIES?

OUTCOMES FOR DIGITALLY TRANSFORMED vs.

NON-TRANSFORMED COMPANIES

BY GROUPING SYSTEM DEVELOPED BY MIT’S CENTRE FOR DIGITAL BUSINESS (SEE BELOW)

PROFITABILITY AND MARKET VALUATION CORRELATE WITH MANAGEMENT OF TECHNOLOGY RATHER THAN RATE OF ADOPTION. +6%

6%

0

REVENUE CREATION

65%

+9%

-4%

+26%

-10% +9%

14%

15%

0

PROFITABILITY

-11% -24% CONSERVATIVES

FASHIONISTAS

DIGIRATI

Possessing neither advanced technology or the ability to manage it.

Slow to adopt technologies but effective at managing them.

Early adopters of technology but without effective management skills.

Mature at both technology adoption and management.

THE LEADERSHIP IMPERATIVE

38% 98%

LOWER-LEVEL STAFF ARE MOST IMPATIENT, RATING THE PACE OF IMPLEMENTATION SLOWER THAN MANAGEMENT.

-7% BEGINNERS CONSERVATIVES FASHIONISTAS DIGIRATI

THE KPIs OF DIGITAL TRANSFORMATION

THE POLITICS PROBLEM

MOST COMPANIES DON’T TIE REWARDS TO DIGITAL TRANSFORMATION

MORE THAN HALF OF COMPANIES FAIL TO SET METRICS TO GAUGE PROGRESS, BUT FOR THOSE THAT DO, THESE ARE THE KEY ASPECTS OF MANAGING KPIs

INTERNAL POWER CENTRES CAN INHIBIT CHANGE

68%

65%

BEGINNERS

CONSERVATIVES

FASHIONISTAS

DIGIRATI

DEFINING THE RIGHT KPIs

39% CHANGING THE CULTURE

60% LACK OF MANAGEMENT SKILLS

LIMITATIONSOF IT SYSTEMS

REWARD STRUCTURES AMONG DIGIRATI 4%

AWARDS AND RECOGNITION

CONCERNS WITH THE INTEGRITY OF THE DATA

OTHER

22%

39%

NOT ENOUGH DATA

35% PERSONAL ADVANCEMENT

The most popular are: TOO MUCH DATA

19% cross-functional steering committees

C-LEVEL EXECUTIVES AND BOARD MEMBERS

0

MANAGERS

VERY FAST FAST ABOUT RIGHT SLOW VERY SLOW

$

Infographic developed by Marketing (marketingmag.com.au) and Transmission (transmissiondesign.com.au).

Sources on these pages: MITSloan Management Review and Capgemini Consulting, ‘2013 Digital Transformation Global Executive Study and Research Project’, sloanreview.mit.edu/projects/embracing-digital-technology.

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60% of companies use a governance mechanism for digital investments.

FINANCIAL INCENTIVES

CEO/PRESIDENT/MANAGING DIRECTOR

STAFF

-12%

INCENTIVE STRUCTURES

48%

38% of respondents said that digital transformation was a permanent fixture on their CEO’s agenda.

93% of those employees feel that it is the right thing for the organisation.

0

MARKET VALUATION

BEGINNERS

+12%

+7%

20

40

VERY SIGNIFICANT SOMEWHAT SIGNIFICANT NEITHER NOT VERY SIGNIFICANT NOT AT ALL SIGNIFICANT DON’T KNOW

60

80

100%

15% specific digital leadership in individual business units 14% cross-functional innovation groups 13% a chief digital officer (CDO)

www.marketingmag.com.au | DECEMBER/JANUARY 2014 | MARKETING

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CASE STUDY

Pushing the envelope CAMPAIGN: THE WORLD STAMP EXPO 2013 CLIENT: AUSTRALIA POST AGENCY: TANK BRANDING

BACKGROUND From 10–15 May 2013, Australia hosted one of the most significant events on the philatelic calendar – The World Stamp Exhibition.

The scale was enormous – it was the second-largest international stamp show ever held in the world, with: › stamp and coin collections from around the globe on display, amounting to $300 million in value › competitive exhibits from 60 countries, with more than 54,000 album pages › over 90 trade stands operated by local and international stamp dealers, postal administrators, mints and other stamp organisations › rarely seen philatelic material from the Royal Philatelic Collection and the Australia Post National Philatelic Collection › national and international dealers, traders and collectors from more than 30 countries descending on this massive event.

As principal sponsor, Australia Post faced some significant challenges.

Most importantly, it had to make the event profitable for the organisation and the key stakeholders, such as local and international philatelic societies, as well as achieve recognition for The World Stamp Exhibition as a major and relevant international event on the philatelic calendar. To do this it had to inspire people to attend, appealing to both the enthusiast and the newcomer.

OBJECTIVES

Challenge one: Disappointing 2005 result The previous expo held in Australia in 2005 achieved results well below expectations. Attendances were low.

Revenue generated was low. The yields from the marketing were poor.

It failed to engage people beyond the professional, and missed an opportunity to make money by selling stamps.

Challenge two: Major sponsorship challenge As principal sponsor, Australia Post also took on responsibilities for overseeing the communications, ticketing and logistics for the event, as well as creating and running the centrepiece stand at the exhibition.

Challenge three: Competitive event landscape January to May is one of the busiest periods on Melbourne’s events calendar.

High-profile international events such as the Australian Open, the Formula One Grand Prix and Melbourne International Comedy Festival all fight for valuable media coverage and audiences.

STRATEGY Major changes had to be made to the communications strategy to ensure the 2013 event would overcome these challenges and exceed expectations.

Working with the Australia Post activation team, Tank identified a critical insight that would redefine the event.

For the event to capture the imagination of a wider audience, from the serious

collector to the newcomer, the branding and communications had to create a modern, sophisticated and consistent framework that positioned the exhibition as a major international event. And it had to change perceptions of the typical stereotype of the stamp collector – an old man soaking stamps in a teacup.

The most critical change made was to develop a new brand mark and rename the event, from the Australia 2013 FIP World Stamp Exhibition to The World Stamp Expo.

Adopting the more succinct name of The World Stamp Expo provided the basis for a more modern, impactful and marketable result.

It also provided a solution for evolving the existing brand mark adopted by the Australian Philatelic Society, which had primarily been used to appeal to their international audience.

The new brand mark achieved a variety of aims: › recognition: its simple form based on a postage stamp gave it its strength and was instantly recognisable and identifiable with The World Stamp Expo › relevance: it incorporated the existing Australia 2013 brand mark as a postmark, which served to give it more relevance and recognition than how it was being used in its previous state, as well as promoting the centenary of the 1913 Kangaroo and Map stamp › flexibility: it was easily reproduced

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and legible at various sizes, which gave it maximum flexibility to be used across all communications, and › branding: the hero colour of the light blue was again recognisable and didn’t interfere when used alongside the Australia Post brand mark. (In fact, it made it stand out.)

EXECUTION The brand campaign The next major decision was to develop a campaign idea that would capture the imagination and interest of all ages and demographics – from the serious and novice collector and trader, to those interested in a stamp’s artistic merit, to a younger generation motivated by new technologies.

Philately is a multimillion-dollar business, made up of the most extraordinary designers and historians in the world. Whether it’s searching out a stamp, coin, letter or postmark, one thing defines the collector: their story.

The chase for the stamp. Hunting down the most obscure idea for a collection. The thrill of owning their first stamp. It could be the collector’s story or the story behind the item. This was the key to the campaign.

The campaign centred on the human story, told through the creation of five characters: › the hunter: they are excited and driven by the thrill of the hunt › the collector: prides themselves on curating their personal collection › the designer: appreciates the

THE 2005 EXHIBITION HAD FAILED TO ENGAGE WITH AUDIENCES OUTSIDE OF THE STAMP ENTHUSIAST.

creativity and detail that shape these mini pieces of artwork › the trader: interest is in the business side of philately › the lover: embraces all that represents the philately community.

The campaign emphasised that The World Stamp Expo was for all personalities and characters. Yes, it’s for the professional, but it’s also for the person in the street who simply wants to buy a piece of personal history, such as the Black Caviar commemorative stamp, or have a collection handed down to them by their grandmother valued.

The characters made it easy for the Australia Post activation team to ‘sell’ the story of The World Stamp Expo – whether to postal administrators from the likes of Royal Mail, UK, through to the general public interested in attending arts and cultural events.

It provided the framework to educate the public on philately and The World Stamp Expo. This was further explored through videographies on the website, capturing stories of exhibitors, dealers, collectors and enthusiasts.

The brand mark and event collateral influenced the entire suite

of communications across print advertising, outdoor and digital, including the launch of a refreshed website to promote the event.

The campaign modernised The World Stamp Expo and allowed it to compete as a Melbourne and international event, providing a strong sense of cohesion, credibility and professionalism.

RESULTS On every measurement The World Stamp Expo exceeded projections and expectations, including: › ticket sales were 300 percent higher than projected › total attendance was 320 percent higher than projected (400 percent increase on the 2005 event) › Australia Post revenue was 330 percent higher than projected › 53 percent of people had never attended a stamp show (with 38 percent below the age of 50), and › 96 percent of people who planned to buy a stamp did so.

The buy-in from the philatelic community was just as impressive, with representatives from world postal administrations and dealers attending.

Many of these stated that the campaign and event set a new benchmark. The campaign was estimated to reach over 6.5 million people, with the website viewed by two-thirds of the world’s countries. The Victorian economy also benefited, with room nights booked 300 percent higher than projected. M

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58 FEATURE

BUILDING THE GREAT

MODERN MARKETER Digital skills are in demand – no surprise there – but equally as important are the personal development qualities required of a marketing leader. Catherine Vallence explores how marketers can develop the right mix of attributes in themselves and their teams, when capabilities and time are in short supply.

N

ow more than ever, resourceful marketing professionals who develop digital skills are likely to command high salaries for years to come.

While it may sound dramatic, recruitment experts are warning of a significant skills shortage in Australia, as increasing numbers of consumers interact with brands on mobile devices and digital channels.

Senior regional director of Hays Sales and Marketing, Peter Noblet, says digital skills are necessary because successful marketing strategies demand the right consumer insights and channel selection.

“There are few applicants who have digital marketing experience or qualifications and this is creating a significant skills shortage in Australia,” he says.

The roles that are in demand, according to Hays’ Quarterly Hotspots in Marketing, include marketing generalists, content managers, digital marketing managers and graphic designers (see breakout box).

Noblet says employers are looking for marketers who have the potential to work with data and make sense of user-generated content, such as online ratings.

MARKETING | DECEMBER/JANUARY 2014 | www.marketingmag.com.au

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There is a perception that there is a lack of fundamental soft skills that will inhibit their potential for leadership.

www.marketingmag.com.au | DECEMBER/JANUARY 2014 | MARKETING

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