HOW TO BRIDGE THE DISTANCE BETWEEN BUSINESS STRATEGY AND DESIGN A VISUAL PRESENTATION BY MARTY NEUMEIER Produced by neutron llc in partnership with new riders publishing and the american institute of graphic arts Copyright ©2003 Neulron LLC. For educational use only. No part of Itiis preservation may be published, sold, or otherwise used for profit without the written permission otthe author WHAT YOU'LL LEARN: O A modern definition of brand © The five disciplines of brand-building READY? LET'S START BY DISPELLING SOME MYTHS. FIRST A brand is not a logo. Ceci TveM pxu wna órand. SECOND A brand is not an identity. FINALLY A brand is not a product. soWhat exactly is a brand? A BRAND IS A PERSON'S GUT FEELING ABOUT A PRODUCT, SERVICE, OR ORGANIZATION- It's a persons gut feeling, because brands are defined by individuals, not companies, markets, or publics. It's a gut feeling because people are emotional, intuitive beings. In other words. . IT'S NOT WHAT YOU SAY IT IS. IT'S WHAT THEY SAY IT IS. WHY IS BRANDING SO HOT? O 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 trust TROST RELIABILITY DELIGHT Trust comes from meeting and beating customer expectations. AND HOW. THIS SELECTION FROM I NTERB RAN D'S TOP 100 LIST 5HOW&WHV BR AMDS ARE WORTH PROTECTING; 2DD1 % Change bhanu value brand HRAMfl VAl h ran fJ vs. a3 % OF name previous yeah market cap coca-cola -5% 61 % k/lCAQ&QFT 17% ibm 52.75E 27% Fonrj h::. -17% 6-6% mercedes 21.72B ia% 4b% honda 14. tje ■4% Ar\ bmw 13.b56 i7% 6?% kooak 10,801 -0% 84% gap 8.7*6 -&% mike 7.569 !:■■■ pepsi 6.214 -&% b% xerox $,019 3&% 33-% apple 5.4B4 17% 66* starbucks 1.757 + 32% 51% PREDICTION PROBLEM In most companies, strategy is separatad from creativity by a wide gap. On one side of the gap are strategic thinkers ANALYTICAL LOGICAL LINEAR NUMERICAL On the other side are creative thinkers INTUITIVE EMOTIONAL SPATIAL VISUAL VERBAL PHYSICAL DOES THE LEFT BR.AIN KNOW WHAT THE RIGHT BRAIN IS DOING? When both sides work together, you can build a charismatic brand. {A charismatic brand is any producl serviceT or organization for which people believe there's no substitute. quiz: Which of these brands are charismatic? amazon hitachi oxo goodgrips apple home depot pepsi-cola burger king ikea prell coldwater creek kmart rca dasani krispy kreme reebok disney levis rubbermaid dk books longs drugs safeway eveready macy's samsung ford mini cooper sears general electric newsweek southwest airlines google nissan united artists hanes nordstrom virgin quiz: Which of these brands are charismatic? amazon oxo goodgrips apple homl 'ot _J3l-cola ger king ikea _ll ani krispy kreme lbok disney levis rubbermaid dk books longs drugs macy's samsung mini cooper sea general newsweek southwest airlines google NORDSTROM VIRGIN Any brand can be charismatic. But first, you have to master the five disciplines of brand-building. DISCIPLINE 1: DIFFERENTIATE FACT: Our brains act as filters to protect us from too much information. )0000000000 ooooooooooc )OOOOOOIOOO ooooooooooc WERE HARDWIRED TO NOTICE ONLY WHAT'S DIFFERENT. )0000000000 ooooooooooc )0000000000 SOLUTION: BE DIFFERENT. FEATURES "What it is" 1 BENEFITS "What it does" 1 EXPERIENCE "What you feel" 1 IDENTIFICATION "Who you are" 1 190Ü-* 1925 1950 -> 20C0 Marketing today is about creating tribes. People join different tribes for different activities DRIVING VOLKSWAGEN READING AMAZON computing -> dell SPORTS ■* NIKE cooking -> williams-sonoma BANKING -+ CITIBANK TRAVEL -> ORBITZ The three most important words in differentiating your brand: o FOCUS °FOCUS •FOCUS THE FOCUS TEST: O Who are you? © What do you do? @ Why does it matter Unless you have compelling answers to these questions, you need more focus. The most common reason for loss of focus iS ill-considered brand extensions. EXAMPLE: FOCUSED -> PORSHE = SPORTS CARS UNFOCUSED -» PORSHE = SPORTS CARS + SUVS bad brand extensions are those that chase short-term profits at the expense of long-term brand value. good brand extensions grow the value of a brand by reinforcing its focus. THE GOOD GRIPS BRAND HAS GROWN STRONGER WITH EVERY BRAND EXTENSION. DISCIPLINE 2: COLLABORATE LIKE BUILDING A CATHEDRAL, BUILDING A BRAND IS A COLLABORATIVE PROJECT It takes a village to build a brand. THERE ARE THREE BASIC MODELS FOR ORGANIZING BRAND COLLABORATION: The one-stop shop contains the resources to develop and steward the brand. COMPANY ONE-STOP SHOP sco recard Easy to manage Promise of consistency o Little choice of teams Little ownership of brand The brand agency hires best-of-breed firms to help develop and steward the brand. A COM PAN Y brand agency scorecard O 0 Choice of teams Little ownership of brand Promise of consistency The integrated marketing team is managed internally with open collaboration among best-of-breed specialists. integrated marketing team SCORECARD O 0 Choice of teams Difficult to manage Promise of consistency Ownership of brand and that's OK. Collaborative networks are not new. A succGssful model has existed for years. Like building a cathedral, making a movie takes hundreds of collaborators. nu i« i linu is-" íl Q littim EůlV.-iilwM u"-+:n ¥ltjlW. 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LU ■ ■■■ ilHlOTl-AIMTlUe n^dkiiEn AcTin >«J liRIILr Fvrxi.- ■ '. . .Ui ■■• k.lj,i, mihi:i >mim ■■ ..:,J.'L4...-. #[H»UfflLU> CGI o .i,i Lent \ah:' nctMi y CS Altlay iťllili i r.-.|-.-f> 1KFJ1IM . 'It DB Mfcv n.iiw.;. Ali M. ý-LLlW1 rmr«hr. WRKí KAHOHPf umhtdlj -I- r ■ ihm i .I.RIAS J/0 5kfWrtW OUCKTHUK AvtrrrrtV-SW "rt^j. 'rStl* l*UIA ::H'Ihh SfiWHH TO* 'VcjJ-hti titter illH ULUni n« '^himI by JA-'HJAHi.L lh[ OftUlby MÍIFIÍ LwC ■.n«i-r-i>ľ* Mbui :n JUHETE BCOOHTi, K ■ M PiM-r»n lŕii m w YiiiK r-( rUHTHĽ «NTT.lt D" ľr.[-. IŮÍ ■KUIr'. rillU MiCTYOFBEUJ.-SflKai ÍU.AHŮr WIK] rirwj or Liu!mi n i Arr murm- ID TOK OTY W1MIY, HJ."; T HAU LKAMEUi. UUfOHllA III Ml. □■! IhZM ritTK writ UHHrtlim linmim .mu i.j- lr. ii1.iiii.fi1. IK IN THE 1990s, CREATIVE COLLABOrWlON S l-^t 1= CZ> bSHAND BUILDING. EXAMPLE: The Netscape brand was built on the Hollywood model. WHY? Because the mathematics of collaboration is nothing less than MAGIC. DISCIPLINE 3: INNOVATE Execution— not strategy—is where the rubber meets the road. CREATIVITY IS WHAT GIVES BRANDS THEIR TRACTION IN THE MARKETPLACE. Why do companies have so much trouble with creativity? Because creativity is right-brained and strategy is left-brained. CREATIVE THINKING STRATEGIC THINKING mantra for innovators: THE REASON THE BEATLES WERE WILDLY SUCCESSFUL IS BECAUSE THEY NEVER DID THE SAME THING ONCE. QUESTION: How do you know when an idea is innovative? answer: To begin with, the brand needs a stand-out name. The seven criteria of a stand-out name: o DISTINCTIVENESS 0 BREVITY © APPROPRIATENESS O EASY SPELLING AND PRONUNCIATION © LIKABILITY @ EXTENDABILITY O PROTECTABILITY A great name deserves great graphics. LOGOS ARE DEAD, LONG LIVE ICONS AND AVATARS! {An icon is a name and visual symbol that suggests a market position. example: cbs. The network for "eye-popping" television. An avatar is a brand icon that can move, change, and operate freely in various media. EXAMPLE: cingular: The "self-expression" cellular service. For products that sell at retail, the package is often the best and last chance to make a sale. The hardest-working packages follow a natural reading sequence. THE SHOPPER: O Notices the package © Asks "What is it?" 0 Wonders "Why should I care?" © Wants to be persuaded © Needs proof By presenting information to match this sequence, a package can sell the product more effectively. 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: Does our website look Too many websites are bloated with irrelevant information. why? o TURFISMO (Every department wants to be on the home page) © FEATURITIS (Inexperienced communicators believe more is better) © TECHNOPHOBIA (Experienced communicators resist new media) Which of these sites looks easier to use? msuf e:UrExtt excite excite i cc-king lo mflke e connecti h> F^JI* j+.LiLKli - ".■T—hi*, niL asci' iltWah Mm ■J"vn*ul LatuidriEa Uifcn Lbjiid DiIji l-^Lh.--^ jl "H rrJrii/lv-r Kr I kM|_ M -3« vJJ-i?*- --I^KIII Frtln i '■n Fi1hr.ii ■WH CD two ' ' I a® Thiv Ji" J Jk-_mi+IbIE I"i jI fchriJ- -±lrf---a ll tit [int. 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SHOPPERS CHARACTERIZED THE PACKAGE CONCEPT ON THE MIDDLE-RIGHT SHELF AS "A FASTER PENCIL" BINGO mo U WIS 'mi ir I #4* miim mini rrm 465 Field tests measure five things: o DISTINCTIVENESS © RELEVANCE © MEMORABILITY © EXTENDABILITY © DEPTH OF MEANING Visu T NETW- 0 V bea >nghtVi ^B^^ inn that P TESTING MIGHT HAVE SAVED SOME OF THESE COMPANIES FROM THE GREAT SWOOSH EPIDEMIC. «^ * * LySurtcom Tra*~«#HviAT HAS THE GLOBE BECOME THE NEW SWOOSH? CAlLl ft WIN l LI 1* ©the™