Your toolkit for achieving a successful rebrand in the Middle East
2nd March 2011 Rehan Khan, Managing Consultant, BT

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Key learning objectives
1. Top reasons why your organisation might need to rebrand 2. Replicating rebranding success stories in your company 3. What not to do: avoiding the most common rebranding pitfalls

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Bringing meaning to the brand
The brand elements (e.g. name, logo, feature) have a history and a meaning They are filled with customer experiences
Advertising, films and sporting events use them for props Magazines and newspapers evaluate the brands People talk about the brands in conversation

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Rebranding is
Telling the brand story from a different perspective
Changing certain elements (name, logo, image, advertising, marketing, strategy) that creates a new identity Taking up a new position in the market place to communicate a different message to the target audience

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Why? To take a new market position

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Why? To differentiate from the competitor
Qantas successfully fought back against Virgin Blue by launching Jetstar, a fighter-brand
Strategic analysis showed Qantas brand could not fight back However its Jetstar offering was no-frills, unlike Virgin which was low-frills
Management understood customer needs through research Fast launch in a growing market Jetstar took on routes where Qantas lost money Qantas continued to invest in premium brand

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Why? To move closer to the end customer
HTC was an equipment manufacturer for other brands Next generation product to launch and position its brand to consumers iPhone created legitimacy for touch screen technology HTC Touch shipped three weeks before the iPhone
Offered as the other iPhone, 3 million sold in 11 months Apple and HTC mentioned in the same breath, a major positioning coup for a company which had no consumer position
Collaboration with Google to make the worlds first handset to run on Android, an open-source platform

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Why? Adapt to market conditions
General Motors filed for bankruptcy in July 2009
Invest in Chevrolet, Buick, GMC and Cadillac. Sold Saab Discontinued Hummer, Pontiac and Saturn brands.
Reinvent as more focused company with fewer brands, greater efficiencies, better fuel economy and new technologies.

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Why? In summary

Corporate strategy

Bankruptcy (e.g. GM) Technology change in the market (e.g. Western Union) Mergers & Acquisitions (e.g. Google) Emerging market situation (e.g. AIG) Competitive threat (e.g. Qantas and Jet Star) Geopolitical events

Marketing strategy

Positioning (e.g. Lucozade) Removing negative image of the brand and restoring reputation (e.g. Monsanto, De Beers, Philip Morris) Create additional brand equity Refresh the brand and keep it current

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Challenge of creating a new brand position
HIGH (Price) Upscale precision

ASTON MARTIN HUMMER

HIGH (Fuel economy)
CARTIER BREITLING BMW AUDI
LOW (Fuel economy) Sporty

GUCCI SEIKO

Fashion

TOYOTA HONDA MAZDA KIA

TIMEX CASIO SWATCH CITIZEN

LOW (Price)

Affordable
1. What position do you currently own? 2. What position do you want to own? 3. Whom you have to defeat to own the position you want. 4. Do you have the resources to do it? 5. Can you persist until you get there? 6. Are your tactics supporting the positioning objective you set?

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Becoming contextually relevant
P&G recalibrated Pampers
Pampers, with sales in excess of $5billion, was reframed from diapers to baby care then a to a wider range of parenting products Focus on engaging with customers and staying relevant in their lives Contextually relevant marketing initiatives

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Selling water at a premium
Norwegian bottled water company Ultra premium brand
Sold through on premise locations (high end restaurants, hotels and clubs) Design approach was similar to the creation of a new luxury fragrance

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Radical change of the category
Console as a passive immersion in a virtual world for young gamers
Console as active physical entertainment for everyone
Radical improvement Performance (technology) Playstation 3 Microsoft Xbox 360 Graphics speed Previous generation
Adaptation to the evolution of socio-cultural models

Nintendo Wii

MEMS accelerometers

Incremental improvement

Generation of new meanings

Meaning (language)

Source: Verganti Design driven innovation

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Portable music playing
Seamless production of personal music
Radical improvement Performance (technology)

MPMan Rio PMP300 PJB100

Apple iPod
Digital audio encoding User interface iTunes iTunes store Digital audio Encoding (MP3)

iTunes

Walkman, minidisk or CD music players

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Organsiational transformation

80s 90s

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Innovation in construction
Construction materials is a $5 trillion global industry
Little innovation and R&D Built environment responsible for 50% of greenhouse gas emissions 30% of all energy used in commercial buildings is wasted
Silicon Valley mentality to physical manufacturing

Empire State Building

Upgrading all 6500 dual-pane windows by reusing the glass to create a more efficient material
38% reduction in energy. Save $4.4 million in energy per year. Payback within 3 years

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Employee buy in

Bystanders Intellectual buy in

Champions

Weak links

Loose cannons

Source: MCA

Emotional buy in

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Risk taking undermined brand values
One of the biggest banking failures in US history Brand values were
Fair, Caring, Human, Dynamic

So what happened?

Complex mortgages and credit cards had terms that made it easy for the least creditworthy borrowers to get financing Pressed sales agents to approve loans while placing less emphasis on borrowers incomes and assets. Was selling many of its loans to investors, it worried less about defaults

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Avoid a head-on brand war
Carbonated soft drinks market is extremely profitable Dominated by Coca-Cola, Pepsi-Co, Cadbury Schweppes

60% gross margins

Cost of entry low but incumbents control:
Brands, bottling and distribution capabilities, shelf space Virgin Cola went for a head on assault and failed to break the viselike grip on shelf space which the incumbents had

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Create a niche
Red Bull entered the market with a niche product

Carbonated energy drink retailing for $2 for an 8.3 ounce can, twice what youd pay for a Coke or Pepsi
Sold through unconventional outlets and established a loyal niche following
Then muscled its way into the corner store in refrigerated bins
Enjoys 65% market share of the energy drinks market

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If there is brand equity avoid throwing it out
After 21 years and sales of 7 million vehicles, in 2006 Ford withdrew the Taurus range but by 2007, it was back

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Not a clean getaway

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Remain true to the brand story
An exhilarating drink Super Dewd
Did not tap into the Mountain Dew story

Do the Dew

Harnessed the wild man ideas and combined them with extreme sports market

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Reasons for brand decline

Managerial actions

Product quality gets compromised over time and so the brand does not live up to expectations Price increases with corresponding increases in benefits Price cuts to maintain market share, but driven to lower cost base and impact on quality. E.g. Lacoste in the US. Market moves on as they get older. E.g. Gap
Environment can change Polaroid and digital imaging market which Sony started Competitors may be more in tune In the nineties Nike and Reebok almost wiped Adidas off the US market

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In summary
1. Top reasons why your organisation might need to rebrand
To tell the story from a different perspective To take up a new market position, attack a competitor, get closer to the customer, adapt to market conditions, M&A, remove a negative image, refresh the brand Being contextually relevant, standing for a higher purpose, selling at a premium, changing the category, restructuring the organisation, innovation
Replicating rebranding success stories in your company
What not to do: avoiding the most common rebranding pitfalls
Not obtaining employee buy in, dont undermine brand values by risk taking, avoid a head on war with the incumbent, dont throw out brand equity, understand the medium of communicating the brand, remain true to the brand story

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THANK YOU

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