MARKETING: an effective tool for maximizing profit

BY BOLA AKINGBADE 25th September, 2008

THE TASK:

Consumer Needs
Connecting the Brand with the Target Customer inseparably

Brand Deliverables

Components Of Consumer Needs That Must Be Established

Reference Consumer: The profile of who can be regarded as the archetypal target consumer for the Products & Services offered by the Brand. Reference Occasion: The usage occasion that target consumers identify with in their regular consumption of these Branded Products and Services. Functional Needs: A set of what the target consumer expects the Branded Products & Services to do for him in his regular consumption of these Branded Products and Services. Aspirational Needs: Expectations about what the association of the target consumer with the Brand via the Branded Products & Services should be saying about them (i.e. expectations on the type of image the target audience wants the brand to create and establish for them) Emotional Needs: Expectations of the target consumer of how the regular consumption of the Branded Products & Services and resultant association with the Brand, should make them feel

Key Consumer Insight: How all of the above add up to unearth the underlying drivers of demand for the relevant branded services amongst the target consumers.

Components Of Consumer Needs That Must Be Established

Key Consumer Insight

Aspirational Needs

Emotional Needs

Functional Needs

Reference Occasion

Reference Consumer

Components Of Consumer Needs That Must Be Established Illustration

Using an International Beer as the Case study.

Key Consumer Insight

Desire for freedom, modernity & progress a satisfying life of fulfillment and self expression as progressive

Aspirational Needs

Emotional Needs

Enjoyment of Moments of Fulfillment with friends

Truly Refreshing Beer Taste with character & appropriate strength

Functional Needs

Reference Occasion

Moments of inspiration and fulfillment in everyday beer drinking occasions Urban Males, 18 34 years

Reference Consumer

Dynamic, Knowledgeable; Creative and Progressive. Loves Challenges

Assessing Scope and Effectiveness of Brand Deliverables Establishing Brand Pillars

Brand X

Products & Services

Heritage

Personality

Identikit

These pillars are relevant for establishing consumer relevance.

They also constitute the Standpoint from which the Brand can Speak the Brand Authority

Assessing Scope and Effectiveness of Brand Deliverables Ownable Values & Properties
Source of Authority: The totality of what underpins Brand Relevance and what stands the Brand apart from a customer perspective Functional Benefit: What the Brand can do for the customer

Emotional Benefit: How the Brand can make customers feel

Brand Character & Attitude: A distillation of the imageries that can flow from the Personality of the Brand
Brand Values: The key value platforms that capture Brand Attributes

Brand Essence: A statement that establishes the central message that flows from all of these to target customers a message that should induce Passion for the Brand in the mind of the target consumer.

Assessing Scope and Effectiveness of Brand Deliverables Ownable Values & Properties

Source of Authority

(International) Quality Brewing Tradition Established origins; strength (horses); dating back to 1870 Red Colour reflecting Dynamism and fun

Key Visual Features

Emotional Benefit

Pleasure (fun filled) Associations with Taste. Competence & Progress

Refreshing Taste of Quality Beer

Functional Benefit

Brand Character & Attitude Brand Values

Urbane, with positive & modern outlook; Competent, creative and progressive

Progress, Dynamism, Fun & Friendship

Sharing the pleasures of Fulfillment

Brand Essence

Brand Proposition

Babol inspires and supports aspirations for Progress and guarantees Fun filled experiences that are richer than the usual.

Establishing the Platform for Customer Engagement in a manner unique to the Brand the Consumer Proposition
BABOL
Brand Evocations / Values
Progress, Fun (+Dynamism) and Friendship SHARING ( the inspiration for, & the rare pleasures of realisable PROGRESS)

Essence

Brand Proposition

Babol inspires and rewards PROGRESS therefore guarantees Fun-filled experiences that are richer than the usual

Key Consumer Insight

Desire to be seen as PROGRESSIVE and FUN Loving Individuals and Groups

Reference Consumer

Professionals; Young (18 29) & Progressive Urban Dwellers

Consumers

Translating the Proposition into Tangible Benefits Product & Service Development Process
Remember that an appropriate Value Proposition must revolve around the significance and relevance of each of the elements of the Marketing Mix.

Products & Services

What Products & Services are needed / necessary to address Customer needs from a functional and emotional benefit perspective. How can the Products & Services be delivered in ways that can induce Innovation Leader associations with the brand.

Product & Services

End Value Aspirations Target Customer needs Product Design Usage Manner & Time

Benefits Offered
- What does it do for me? - How does it make me feel? - What advantages vs Competition?

End-Value Associations
- What can it say about me? - How credible can this be? - What heritage can it leverage to support this? - How consistently can the brand make this happen?

Mandatories

State of Innocence

Widespread Customer Interest

Trial

Adoption

Affinity / Preference

Loyalty / Brand Ambassador

The Marketing Mix Connection

Price (Revenue / Margin objectives)
Economic profile of Target Customers Optimal Price Levels (to guarantee affordability) Volume, Value and Margin Implications Long term sustainability (+ Brand Image association vs. aspirations)
ultimately, what value perception at proposed price amongst target audience vs: - Assessment of end value associations with Product & Service; - Competitive offerings.

Elasticity Profile

Cost Management / Efficiency Imperatives

The Marketing Mix Connection

Packaging / Pack Format / Pack Designs

Consistency with Presentation and Brand established Usage context, Identity projections Manner and Time (including Branding & relevance / usefulness of on-pack information

Content volume vs price - levels

Value Perceptions vs Competition

attractiveness profile trial inducement potential personal - image promotion potential sustainability potential Review

The Marketing Mix Connection The Star Approach

- Situation Analysis (Key Market Developments); Opportunities & Threats; - Tasks that need to be performed (Key Strategic Objectives; Key
Imperatives for Action).

Strengths & Weaknesses; Key Issues to address; Critical Success Factors.

- Action Needed to Address Tasks (Marketing Mix Led Actions that are on
Strategy) + Implementation.

- Results & Review (Performance Evaluation; Strategic Review; Change

Program).

best if all steps are managed along with the Agency

Communicating The proposition for Strong Consumer Connection

Promotions Mix
communication of the Value Proposition to target customers in ways that will
Excite / Induce Trial Engage the customer in relevant usage / customer connection occasions (Adoption / Affinity) Endear the brand to the customer in all circumstances where Brand offering is relevant (Loyalty / Preference) Vehicles Wheel of Total Communication
Role, Relevance, Priority, Strategy & Plans + Budget Allocation

Events Sponsorships

TV Radio

Role, Relevance, Priority, Strategy & Plans + Budget Allocation

Merchandising / Street Level visibility

Brand V/Prop
Press Outdoor

Sales Promotion

Communication Policy & Strategy

Measuring Effectiveness & Proposition Review Purpose of the Plan

To establish what needs to happen in the process of satisfying the Business Objectives from a Marketing Perspective.

Typical Business Objectives

Volumes Revenue Market Share Brand Preference EBITDA Margin EBITDA PAT

A typical Marketing Plan must:

i. ii. i. ii. Address each one of these issues; Present the manner in which related targets can be realised; Outline risks / threats to the plan; Establish contingency plans to manage the risks, should they become a reality.

The Winning Formula

Insightful market knowledge (including opportunities for winning Revenue streams) Professional Value Proposition development. Excellent Customer connection via focused communication of the targeted Value Proposition Constant Collaboration with the Agency at every stage of the Process.

THANK YOU