Thank You Samantha so it's great to be here thanks for coming although maybe you had to come I'm not sure so but nevertheless thanks for coming so great to be at Iowa State have a wonderful day here looking forward to another day tomorrow a chance to spend more time so I am only got an hour so we're going to kind of jump right in and I am going to talk about branding and brand equity it's sort of my area specialty so I want to do a little background on sort of me and a little bit on branding 101 before I get into the lessons and then what I'm going to do is I'm going to focus on six brands that I've worked with that I owe in each case there are some lessons that I got that I think could be really really interesting and helpful so that's that that's the set up so I think I'll do it I'll probably stop after I go through the you know the basics if you will and see if you have any questions don't worry if you don't have any because I'll have time at the end too so make sure you have time to ask questions questions are great I like questions so anything that's on your mind we'll have a chance to talk about so I do have the two textbook so thanks Samantha for mentioning those and that the thing about him it just shows the importance of branding because there's a whole chapter in the the intro marketing management textbook which is used in all the MBA programs are many MBA programs and then the branding book itself you know is used in a lot of MBA programs too and these are some of the companies I've worked with through the years and I'm gonna highlight like I said six of these so I've been really lucky because these are all companies I've had sort of multiple engagements with so I've worked with like an American Express or a Ford or a Procter & Gamble just you know for a number of years and you know different capacities if you will different projects you can see I kind of circled in the show the different industries so there's packaged goods and there's financial service and there's technology and there's just different things it's it's in like right now I've got projects with Nike and coke and General Motors and so you know and all these projects they're great opportunities to learn so as an academic you bring what you know from research and from other other companies but then you also learn from every one of them and that's part of what we're going to talk about so let's just do a little branding 101 so if you will set things up what brands can do so you know fundamentally brands are about creating a awareness and image if you will for products and services so it's to identify and differentiate and that fundamentally is the important role brands play so it's to make sure that people know who you are is a brand is a product or service and then what you are what makes you special what makes you distinctive and differentiated and that's the real key it's a branding is you don't want to be a commodity so the idea is I'm going to make sure I'm differentiated so I don't fall into what you can call commodity trap where you're just competing on cost and price so which is a really tough game to play because you're just then you it's all about reducing your costs so that is two different differentiate yourself so by having a brand that gives you the opportunity to reap the benefits of it I'm going to talk about this of branding and having a good brand but it's what you do with it it's necessary but not sufficient so there are a lot of brands out there and there aren't that many brands that are necessarily strong brands and so the key is how do you actually create that what kinds of things do you do and they in fundamentally it comes back to that notion of creating awareness and creating differentiation and distinctiveness this is one of my favorite slides so this is sort of has allotted to me some of the key points about branding so when I work with companies a lot of times I'll share this with them just to remind them or it'll come up in different ways so the first sort of point is the strong brands like a promise it's a way to reduce risk and set expectations and that role of brands is really really important it's the fact that I know that if I buy this particular brand I'm gonna get this in return these benefits and in this kind of performance that I want and it may be so it's all about predictability it may be predictably unpredictable but it's still predictable and that's really important because that makes consumers lives a little better because they don't have to spend I'm deciding our customers you know which brand to buy if we did that we wouldn't have time to do other you know lots of their things so we develop we've learned about brands we develop loyalty and that's that promise and as long as that brand delivers on that promise and as long as that brand fulfills the expectations then I ain't going to give it the loyalty and so that's you know the sort of a start point and that basic notion of what is the promise that your brand has what do people expect from you is always important to keep in mind as you're making decisions so the power brand resides in the minds and hearts of consumers and it's the fact that there's a rational part to are the decisions we make and there's an emotional part and the best brands make sure that they tap into both so they make sure that there's it's it's it's what they do in a very rational way the head but also how they do it what they represent and the image and it's more the heart and the emotions so it's a heart of a strong brand our great products and services and I really believe in this so a lot of times people talk about branding as if about advertising or other things it's you know fundamentally having a great product is the key to me to have a really great brand great product or service it's at the heart that said every brand contact matters because it can affect what people think and feel so customer service your return policy I mean anything that I learn or hear about your brand can maybe affect what I then think and feel and then how I then how I respond to your brand sort of going forward a strong brand improves improves marketing effectiveness inefficiency and this is really key so it's the fact that if I have a strong brand it makes my marketing you know more effective and more efficient and I've got a slide on this coming up and it's really important this is where a lot of value gets created so one of the benefits of having a strong brand is then that allows my marketing actually gets it works better so it makes it easier for me to stay strong in some since a strong man has also got an internal side because it motivates and engages employees so that's really important these days it's about talent it's about recruiting students it's about retaining employees so if a strong brand you know it's funny things when it it tucked where I start myths where I've taught the last 20 years you know I see that all the time like right now Amazon for example bran is really strong students want to go work there you know that's the you'll see that you know change through the years but often the strong brands are the ones that the students really want to work in for different capacities a strong brand provides a buffer and cushion in the court of public opinion and this is the fact that you're going to happen it's just whatever kind of product crisis it may be a product recall there may be something your CEOs you know says something wrong whatever it is and so look in the car industry look what happened with Toyota look what's happened with vmw with you know with the missions Toyota with the sudden acceleration issue I mean these were crises and it helped that those brands actually had built up some equity some value with their customers it made it easier for them to recover and then move forward and in Toyota is a great example because they really didn't break stride so that gives you that opportunity and then lastly you add all that up you know strong brain is one of your most is affirmed as one of your most important intangible assets and that's how I got into branding to start with years ago was there was there's a lot of mergers and acquisitions and it's clear if you sort of look from an accounting perspective what is being paid for that company you know there's some of its tangible assets it's the factory the equipment you know the inventory and all this all those physical assets very tangible but at the same time a lot of it was intangible as represented by the brands so when in dev bought anheuser-busch which they did they paid a lot of money for the Budweiser brand okay because that's not sure I would have done that that's fine they can buy whatever they want and so they chose to buy and paid that money so because that brand had meaning and value in the marketplace so that's a that's why it's such a critical concept I've got I think oh yeah this slides so so so that that notion of value is so important financially but that value comes from the benefits you get from what the brand actually does and that's what this slide does it sort of breaks those down so let's go through these so the first one is it transforms product experience and I'm always amazed and I don't know if you had a chance to do this in any of your classes ever along the way but if you ever do like a taste test a blind versus branded taste test so what you'll find is people will give you completely different answers when they think that the that product that they're tasting is one brand versus another brand it's the exact same product but it'll taste better I did one point I was doing I'm gonna talk about this tomorrow in the seminar I'm gonna do with the faculty I did some research where we're looking at different extensions and we were looking at a sodium free orange juice okay and we were looking at branding at this different ways we're gonna call it either it was gonna be Tropicana sunburst sodium free orange juice or Pepsi sunburst sodium free orange juice and then we actually had in the experiment the the people or in the experiment actually literally tasted the product which was regular orange juice it was regular Tropicana orange juice it salt was and then the question was we asked them to evaluate it and we asked them literally how was the taste how would you rate the taste and people when they said taught me was Tropicana sunburst sodium free orange juice they said no it tasted good you know I'm tasting is really good it tastes it's almost didn't taste like it had sodium in it which of course it didn't but that's you know so that was it literally tastes it that way and then then but the ones who had Pepsi even though it's literally tasted just the same just as good they're like you know something just doesn't taste quite as good here here something's not quite right maybe you need that sodium in that orange juice okay it was all in their heads it had nothing to do the product at all was the same product so you know to me that's the most dramatic example but there are lots and lots of the the fact is if you know a product you know the brand that's going to change the way you experience that so then you know that then you have less you have also then greater loyalty and less vulnerability competitors this is crucial as is the next one which is about margins and price premiums these two are a big part of creating from a from a firm standpoint about creating value financial value so it's the fact that people are you're going to get more people willing to pay more money for for a product or brand but it's more than that you have greater push and pull so your suppliers are going to give you more support retailers and others and then also your communications are going to have more and more create more demand you know more have them sent those promotions and things like that advertising is more memorable so the classic push and pull works really well and fundamentally you've got a platform for growth I'm going to talk about this for Nike in a second I'll give you a slide where I talk about Nikes trajectory over the last 30 years so this slide I'm not going to go through the details in the slide that's not important what it is what it says is that if you go there's a lot of different consulting firms and media and others that have studied the financial value of brands from an accounting perspective just like I talked about earlier and show that there's a big percentage of what the the shareholder value so the market cap of a company is often made up other brands financial value so you can actually look this is from 2016 so you know a couple years ago you can actually look at the top you know 10 your most value most valuable companies most valuable brands and you can see again there's a you know whether it's it's the in the t's or in the 20s or the 30s a significant amount so what that says is I've got to think about how to manage my brand proper and make sure I'm doing the right things with it I got to be building it I've got to keep it differentiated I've got to connect with my customers I can make sure I offer those benefits you know everything on the power brands kind of comes into play so hit this I this is an interesting story I love this story so what's a brand worse so let me tell you a story so go back you know go back a few years go back to originally 1994 so Snapple had been very successful in the marketplace so Quaker by Snapple for 1.7 billion dollars okay Quaker then this is three years later in 1997 sell it for 300 million dollars it's a tri arc and everyone told tri are here nuts and I'll explain why in a second who then three years after that sell their company which include included couple other brands mystic and some royal crown Cola RC Cola you know for 1.4 billion - Cadbury Schweppes in but the Snapple value was estimated to be 1 billion dollars of that so what Snapple worth is it worth 1.7 is it worth 300 is it worth a billion so and so let me tell you how that happens because I think it's a really interesting story so so Quaker so let's start with the firt the big game for Quaker let's start with just how they built that bran so snap but when it was launched it was it was a brand new kind of at the time beverage was this new age category that really wasn't that there were soft drinks and juices but it really wasn't quite this if you want to call it a New Age drink and part of that was you know there was all these different things that all natural they had you know down the eart you know in variety had certain personalities look quirky but down-to-earth and then they had some they were all about fun fresh and real so they had these distinctive widemouth bottles they were constantly innovating with new products they had these really really funny ads with this woman this she was Wendy the Snapple lady people would write letters into her and then she would tell stories and they would go out and film all these sort of people in the street doing things that wrote the letters that were you know always very fun very creative and then they had oxy moronic spokespeople or maybe just moronic I'm not sure which but it's the left and the right Rush Limbaugh and Howard Stern so you know there you note again not picking sides saying you know in anyway so very interesting so really creating a lot of personality for their brand so Quaker buys them for one points that was their really successful what's Quaker do to them well Quaker then made a number of changes you know why cuz Quaker had been really really successful with Gatorade so it's almost as if they tried to make this brand like eight or eight because Gary was a huge success for them but catering is a completely different brand a completely different product it's sold differently it's everything about it's different so what they ended up doing was they cut the number of flavors because Gator he doesn't have that many flavors and they didn't introduce a lot of new products because it's all more stable they had a complete different distribution system snap what was sold more in the mom-and-pop stores whereas Gatorade was more super market driven said to change the distribution which meant they had to change the packaging so that Snapple became sold in like 64 ounce jugs instead of the bottles they changed the advertising promotions they started spike we actually did the first day of very first time he ever did advertising and he had it was three deme equals freedom was the ad campaign which is really was a bad idea okay I won't show you the ads just trust me they were strategically sort of misdirected and they were creatively bankrupt okay so but besides that they were great but um not not the greatest ads in the world and then they they fired Rush Limbaugh they fired Howard Stern and then Howard Stern called them crapple for the next like year so they've got all that kind of negative press of the crap bull crap oh crap oh you know and they fired Wendy two so ignore the seasonality completely summer is huge for Snapple Nord it the all these mistakes okay so they panic because their sales are tanked and they're just they're going right so they literally loose 1.4 billion dollars and sell this thing try Ark buys it I interviewed them I wrote a case study in this Michael Weinstein a guy named Ken Gilbert and they said you know we just wanted to fix the five biggest mistakes that they made that was our goal so they literally these were the five they talked about they said we jumped in the seasonality we knew summer was important we knew the distribution is critical it's a really important part of marketing where and how your product is sold so we realized we got out of the supermarkets we got back to the more independent you know distributed distribution that changed their packaging come up with some innovations you know come up we have basically revitalize their advertising in an update the graphics on the packaging so you just brought back to life so you know you add all that up and then your basic can sell this for 1 billion dollars as part of a one point four billion dollar sale it's a Cadbury the brand still around I mean the brand still does you know does well it's not quite as strong as it probably once was but you know it's it's certainly it's still strong and it's certainly in given where it was it's remarkable that they were able to do that so what's it worth well the answer is what can you do with it so the value of any brand is what you can do with it obviously quite riddin know what to do a Snapple obviously then you know prior figured it out so okay so a few more slides and I'll see if there are any quick questions and then we'll dive in this is the six little mini case studies I'm not gonna go through slide because this is the modern reality of branding and you know this is all the changes that have gone on there's a lot you know it's really fat when you're ready one thing to when you write a textbook you always get a chance to sort of see the changes and there's just a lot that's happened in the last you know even five years but certainly last ten years you know that's made it challenging and you and you look at these brands so if I go back 10 years ago 12 years ago these were the leaders in their categories they're very strong brands myspace which is the first social media brand no one will ever admit having a myspace account they actually were very popular at one time but you literally can look at all yeah Yahoo Timmy is one of the saddest that was such a good brand and they just have completely lost their way in terms of what they could have been and all of these you can look at all nokia et cetera and some of them are out of business some of them are just nothing compared to what they once were these were the challengers so these brands have come in there they've taken the share they've taken the leadership in the question is if I come back in 10 years and I hope that's the case I hope I get the chance to come back maybe before 10 years but in and and you know what's going to be the story then like are these brands still going to be leaders and you know so they have to they have to do the right things we're going to talk about Samson a little bit I mean Samson you know obviously galaxies and everything they put a lot of pressure on Apple in that category consumer electronics you think about where how that's changed I'll talk about that in a second all right so let me wrap up this little part and we'll get into the case studies so brands are one of your most important intangible assets and it's because of what they do and what they do for consumers and then the value they create for for firms and they differentiate and create meaning so fundamentally that's that's the key that's what brands need to do but that's the case that they must be managed properly to do so and it's hard because the market environments become so difficult so so any questions am I stopped right here any questions on the setup otherwise I'll go into the case studies I wanna make sure there's not any questions anything okay sounds good you all right you're doing okay you're so far away there's all these empty seats okay all right let's do some case studies and then again all out time at the end and see if there's if you have any questions you have a question sure right so the questions about social medias have been positive or negative for brand equity I think it depends on the brand okay so that's the way the net-net makes it hard I'd have to add up across brands I think the brands that have leveraged it the way in the best way where they tied it into other things that they've done and so the brand values they want to create so they're truly affecting the head in the heart in a way that's going to build their brands have benefitted I think some people have gotten into social media for the sake of social media and haven't reaped those same benefits and I think that's one of the big dividers so to me the key is always how does it fit into a broader digital strategy and more importantly how does it fit into a broader communication strategy and in terms of building brand so any other questions anything okay all right let's we're gonna do six case studies these are all companies in one way or another I've worked with most of them I worked with a lot Red Bulls the only one I wrote some case studies I just know the people they're more than anything so but let's talk about all six we started Nike my favorite brand from my favorite brand of all so with Nike though here's some of the lessons I got working with Nike I think so one of them is just the importance of staying close to customers and learning from mistakes so Nikes always you know been very athlete's driven they've got a certain their whole thing I love their their website they see their if you go their website litter their homepage and they go to the website they say our our goal is to do innovate to innovate inspire the athlete and there's a little asterisk so to serve the athlete there's a little asterisk and the answer goes down and says if you have a body you're an athlete so which is a really important statement to make it's a very very broad access point I'll come back to that in a second the second so but learning from mistakes they've made some colossal mistakes but the beauty with Nikes they've always bounced backs and when they went to Europe they first thing went over there was a very global campaign very us centric and they learned that wasn't going to work in Europe that the sports are so different the attitude sort sports are so different and they really change things around and took the just do it campaign and made it relevant for Europe or the first time that women they made a lot of mistakes and then they realized it's just that it's different psychology it's not the same as men you have to understand that and factor that in they've been really good about that the second one is about innovation and relevance so one of the things I like about Nike is they never stand still I say it's like fast-break marketing I mean they're constantly innovating their products their marketing they want to always be moving forward but moving forward in the right direction they never stand still and it's a company it's just constant innovation and I think that's crucial so that those so the brands that got into trouble from that slide I had earlier we're the ones that didn't innovate and stay relevant that's why they got into trouble so if you innovate and stay relevant you're gonna be in much better position the importance of combining functional and emotional the head in the heart I think Nike does that really really well so there's a lot of Technology a lot of of that innovation in terms of the actual products but it's also this aspirational the emotional and they they're do some of the best advertising they've always been great communicators so very aspirational because again it's just do it's about trying to empower people in different ways you know the power of social influence and this is it's interesting because we just are my social media and the role played they were doing they were sort of looking at social influence before there were social media because a lot of their sponsorship of top athletes if you go back to the Michael Jordan from the early days John McEnroe you go back to Steve Prefontaine the famous runner from Oregon I mean the role that they played was one of the things that they did was to actually influence a lot of people so his endorsements it was always a bet about how they then had a broader effect and what they did so they were actually looking at social influence without the social media so it was a different mechanism but the same concept if you will I'll talk about that in a second and then lastly like I say this broad access point the beauty of so one of the things with a brand is you have to always think about who are you relevant to and the more people you're relevant to the more people you can sell to so you're always thinking about how broad is your access point in other words how many people think your brand is relevant for them it's in other words it's accessible to them and that's the one thing that Nike so Nike as much as they develop products and work with the world's top athletes which they do whether it's in tennis you know you name the sport they're also you know very concerned about that if you have a body you're an athlete in other words the person is literally just sitting on the sofa thinking I really ought to walk around the block a couple times and get a little exercise because I'm not getting enough exercise so that I think that's one of the things they've that distinguishes them that is that ability of that broad access point so that Zelman we could cut a couple more slides couple more comments about Nike so the thing with their growth I find this fascinating this is so here's the power of innovation and relevance and here's the power of understanding your brand promise and making sure you deliver it in different ways in different places so this is this is over roughly 15 year period so if you go back to like late 80s at that time Nike was selling mostly running shoes tennis shoes in basketball shoes mostly two males sort of 12 to 29 mostly in the US okay that's pretty much what they were doing so fast-forward 15 years they were selling shoes clothing and equipment in all kinds of sports to all kinds of people in all kinds of countries so that's a phenomenal growth trajectory and the reason they were able to do that was they had their they had this brand mantra of authentic athletic performance that was the essence of the brand that's what just do it was the advertising embodiment of that but it was all about making sure that they're delivering that performance in everything they do so the first time they went into apparel which that was which they did and was a it was a running shirt the question was and what is it about this running shirt that makes it authentic athletic performance what is it that enhances the athletic performance for anyone whether again it's a top athlete or your casual everyday get off the Cavs person what is it that's literally when they came up with dry-fit so that was new technology it wasn't cotton it was breathable I mean truly was an innovation so that led them into apparel and then eventually into equipment in a lot of different categories so to me it's it's a great example of innovation relevance and a lot of those points we talked about in understanding the brand promise and the other thing I mentioned before is this trickle-down this pyramid of influence there are big believers in this that if you you know the LeBron James or Ronaldo and in football or soccer or any of those things you know that you would actually could influence many people from that that said the arrow on the left side from Nike to the base of the pyramid is saying they're always going to market directly to them they're not just going to rely on this trickle-down they're not gonna ignore that everyday person so very very important and then the other thing with Nike that I really is fascinating to watch what's going on with the brand now because you know for a while it was just do it so it was all about empowerment but you were kind of on your own in an in digital era there's so much you can do to help people so the idea of just it's not just just doing it's just doing it we're going to now help you do it it's sort of the become more their attitude towards this so you can think of as like this ecosystem of engagement where again the FuelBand didn't really work out Nike+ has worked out and nike IG and there's a bunch of other things they're doing and it is more about measurable personal improvement through exercise so it's the whole idea of of taking their brand promise and taking almost going to the next level if you will so that's the Nike stories that's the first one I want to talk about let's talk about Disney so Disney was actually one of the first brands I worked with many years ago and the thing I learned about that was an importance of why you need sort of top down brand management that if you just have a lot of people that are Manning and they're basically selling a brand and are responsible for the brand but there's not there's not oversight you can run the prom and with and with Disney the problem was there were people there literally there this is a time when Disney discovered they could do lots of licensing say to all these wonderful brands and their brands you know be the classic characters the Cinderella's and you know little mermaids and lion kings all those things and you could license into all kinds of people everybody wanted a piece of Disney but you had to think about that it makes sense or not for Disney because that you know you literally I mean there there's somebody that would be happy to license Mickey Mouse and put them on an ashtray and this the world need Mickey Mouse ashtrays is that good for the Disney brand is that consistent with the Disney brand promise and the answer is definitely no so they realized that they needed to sort of put some guardrails in place and they needed to make sure because otherwise its death by a thousand cuts because there's a brand manager out there who says I know these ashtrays are probably not a good idea okay Mickey Mouse shouldn't be smoking we know that so but yet I know I'm gonna make this amount of money and you know help me reach my goals for the year if I sign this licensing deal and it's Canada no one will ever know okay it's death by a thousand cuts okay cuz it's not that one deal it's another another in another so it adds up it's very cumulative and that's the challenge so you want to try to avoid that and the only way you're going to avoid that is to make sure you you actually put some guardrails in place and that became their mantra a mantra is like a three to five word extort hand expression of the essence of a brand so for Nike it's authentic athletic performance for Disney it was fun family entertainment so I would add a fourth word magical but the three words helped a lot anyway because it with those three words you're not going to sell Mickey Mouse ashtrays okay it's not fun family entertainment so that was the key so the key was that to actually come up with those and provide that kind of guidance and instruction so that was the guardrails and that became kind of the marketing filter that you had which is really really helpful so all decisions had to pass through that so what is it you've got to make sure that you live up to the brand mantra just like with Knight what was about the running shirt that made it authentic athletic performance what is it about the licensing deal that makes it fun family entertainment has to be all three he has to live up to that so the next one is sort of the importance of leverage and Disney's sort of masters of that so they will take a concept you know a film concept some movie set of characters and they'll blast it out across multiple formats you know most multiple platforms I mean they are really skilled at that so the the reality of again you've got to combine that with the guardrails but the opportunities that you have once you build a strong brand to leverage it in a number of different ways and Disney is really really good right now Star Wars they are making a lot of money with Star Wars okay so that was that's the Disney story so this next story so that story's a pretty happy story this is the least happy of all my six brands this is the one that's the saddest because it's one of my favorite brands but it's a sad story so I'm sorry it's sad I have to tell you that okay so so here's the problem so so here's here's the problem if you if you look at what happened to Levi Strauss they have lost it with Levi's jeans in particular half their market share over like a decade if you will and to me that's stunning because this is like one of the most iconic brands I mean Levi's was a brand that had a lot of great values and a lot to work with and it's just and so here's what here's what happened there a couple things that happen so one was they felt they failed to innovate and stay relevant and they did that in part because they stuck with their 501 jeans that particular style of jeans which was not really fashionable at different times it's varied some I mean now they're probably okay but their appearance hasn't been fashionable baggy jeans were fashionable other jeans not 500 ones so they didn't have the right product to sell but they yet they kept pushing it and then the other thing was that that you know again most brands it's about intrinsic sin extrinsic sits about the product in the performance and the benefits you get that it's also the image in the personality and the character that so maybe maybe the more emotional side and that's often advertising it doesn't have to be and there are lots of other communications that can do that but it's those two things so it's a one-two punch and the best brands the Nikes and others that just do really great job with that so with Levi's they went through a period of time they're changing their agencies the advertising was really really weak it was a bad time because the product was also not really appropriate so you have those problems and then on top of that they didn't have a right brand architecture by brand architecture that's just that's just brand strategy it's just saying okay how many different products are you selling for a brand and how many different variations are versions oh you know of those for any particular brand are you doing so how many different brands how many different products how many different you know variations and their problem was they didn't have enough so again they're stuck with 501s very limited portfolio the channel strategy was very limited so they weren't they weren't able to sell to a lot of different people in a lot of different ways so what they found was it was the story was so here's Levi's I'm here they're getting a competition up above from like designer jeans they're getting competition down like you know all Calvin Klein's or whatever all those different ones all the bottom down below it's all the kind of more discount if you will the penny and it was Arizona and and so all the the different ones from you know Sears and Walmart's that are so more discount on one side over here you've got Lee's and and Wranglers and all the more traditional competition and then on this other side you have all these really hip cool jeans and I don't know them cuz if I knew them they wouldn't be hip and cool so they're I know they're there they're somewhere over there so here's Levi's in the middle saying okay where do I go how do I defend I'm getting hit from above below this side that side and I'm trying to fight this battle with you know limited number products so it didn't work very well so you know the right response the competition they didn't align their product and channel strategy and add that up market share dropped in half so to me that the lessons I worked with them through this I remember it's actually interesting there private company they're not public so sometimes there's a lot of criticism of public companies being so responsive to their stock prices and making decisions on that basis and that's true and I worry about that but I also worry about private companies who don't have that same pressure and I remember going to Monterey California and it was turning around turning point in Monterey and everybody was there beating their chests saying we're not gonna do this you know take this anymore and it's like you're later they've lost even more share okay they just weren't I don't think responsive and I think that's the dangers sometimes of a private company all right so I bet Red Bull it's probably that time of day so red bow actually is a great example of a category pioneer because when Red Bull and I remember when red book came out I mean there was not another drink like this it was the functional energy drink they created a category there were soft drinks in like Mountain Dew was the most caffeinated soft drink and there were you know the Gatorade and fluid replacements which is different there wasn't there wasn't anything like this so they created this category and they were the first they were the Pioneer and they reaped the benefits of that and they were really smart how they did it so one of the things they did was they really understood that everything matters when you're building a brand so one things I love is they branded this thing really really well so Red Bull itself than the name it's easy to remember the logo the the actually the the can I love there was not a can that slim can that they created that for the longest time that is the only column eske use that's down at stock keeping units that's literally just patent type of package that's all they sold was that it's incredible I mean think how many different I mean I don't know how many different sizes coke comes in I mean it's got you know all these different cans bottles all this stuff right Red Bull that's it and the beauty of that was it really signified potency so again I'm an energy drink I don't need to be 12 ounces okay I've got enough potency that so just signal that and then then a great slogan Red Bull gives you wings you know vitalizes mind body and spirit it was just all so smart and then the other thing they did was they blended you know there in terms of their communications they did so that product and then communications one-two punch so then communication side they did a bunch of thing so so if you look at this slide here it's a little maybe a little hard to see with the lights kind of reflecting on that on that but the you can see there sir on the left side of the more traditional sponsorships you know motorcycles the Formula One racing and bicycles and stuff the right-hand row is really using the top right that's Felix Baumgartner he's the guy that jumped out you know from space okay Red Bull sponsor then got incredible PR and exposure from that the middle one is really neat it's it's something called crashed ice they do that in you know put back they do it you know northern parts of Europe so anywhere you know places where you've got snow it's basically it's like roller derby roller derby on on on skates and they do in these big cities there's a hundred thousand people there they light up the city it's on TV it's a big big event the bottom right is something called and also the bottom the middle bottom in the and then the bottom on the right that other those are scenes from something called fluke tog and fluke tog is German for flying day and what that is is that's a contest where it's the question is how far can you fly in a man-made machine in other words no you can't have a motor or anything like that so it's like a glider you got to figure out so the person on the right you can tell it's taking it really seriously they got a glider they're going to go for it and see how they can go because remember Red Bull gives you wings right okay so we can fly so that's what the guy in the Wrights doing the person of the rights doing the one that the group in the middle there which a lot of people just you know it's just fun they know they're not going to win I mean they're I think they're like a bunch of beer glasses I think our mugs of beer or something like that I can't tell but there's definitely you know kegs of beer and others you know they're trying to fly out you know again they're not gonna go very far it's not gonna work okay it's just not going to work so but that the idea is to make it make it fun they can an event and they do that and they get tons of publicity and so word-of-mouth and the beauty so the one thing about Red Boy I like and this is true I'm gonna talk about Starbucks too it's just the the power of creating a new category if you will and all the benefits you get from that and I think the strongest brands are born out of opportunity whether it's uber now or Airbnb you can go through all those different examples alright let's talk about Procter and Gamble get a few slides on this so Procter & Gamble a couple of things I just want to highlight one is they really really believe in using the best tools possible so trying to be very scientific about what they do so they're very very sophisticated it's been great to work with them I enjoy that a lot they have some of the tools they've used this brand building framework and equity scan which are tracking they're all trying to apply the science if you will brandon and i think that's a lesson is that that can be if you do it right you can really benefit and they've benefited a lot through that through the years they really understand the emotional side of branding so for years they sold pampers which was their biggest brand it's like at the time like five six billion dollar brand and it was also about sold on dryness and absorbency they would have all these ads classic Procter & Gamble product demonstration ads there's two diapers there's pampers and brand you know X we're going to pour color liquid into the diaper and we're gonna see which one holds more because whichever one holds more helps the baby stay drier okay end of story that's they would do that ad after ad look and see you know pampers holds more your baby stays drier by pampers okay and then they realized it's about 15 years ago that we know there's what's the emotional payoff for that as a parent it's not just about a dry baby it's the fact that the baby sleeps more the baby's happier the baby plays more the baby learns more as a parent that's what I care about I care about my baby developing the dryness is a means to an end I'm not going to not gonna ignore it but I want to make sure I remind you know here's the payoff here's what you really get cuz this is what you really want so they really they did that with a lot of their brands what's the emotional payoff for the customer of the functional benefit just like with Pampers the importance of architecture you know Procter gamble was the classic had you know eight laundry detergents and you know all these multiple brands in every category and they realized you know you can't do that anymore you need fewer stronger brands so that's what they've reduced that a lot and then a lot of brand extensions off those particularly strong brands they do a lot about one of the things I think that's really important is the and they do a lot of that again the traditional and non-traditional and they do first and second moments of truth that it's the touch points are in the store and at the home so they want to make sure they do marketing in the store itself the best they can and then also realize that at home matters lock which is more about the product itself and what it does so they talk a lot about the first and second moments of truth which I think are really interesting they do a lot of value pricing which says they always get a premium so compared to private labels in almost every category they're questions how much so they really want to make sure they figure out create value through great products great advertising great marketing and then price it's like we said remember brands give you a price premium they give you that opportunity price according to what that premium is and then they do cause market your brand purpose which I think it's really really important and something they brought into which is you're the bigger purpose you have not just to satisfy your customers what are you doing to help out others and do other things and so one of the things I won't go through all this but there's a lot of benefits to cause marketing if you do it right there's a lot of benefits from a brand building standpoint in terms of not just helping the cause which is great in social welfare and win-win but it helps your brand cuz it differentiates you hit creates respond responses and creates bonds it helps your public image and goodwill and employees love it they get involved in it so it actually to me it's really important a lot of great examples of this and these are some of the PGP and she actually wanted a ward so I was really pleased with that all right we're almost done we've got a few more and then I'll see what questions Jeff want talk about Samson real quick Samson to me is one of the more fascinating brand stories of the last you know 15 20 years because if I asked you or maybe your parents but if I asked someone in 2000 who would be the number one consumer electronic brand in the u.s. Oda been Sony because Sony was like the gold standard I mean it was the gold standard it was extreme ium everyone thought was the best I remember buying Sony TVs and being so excited they're expensive but they weren't worth it you know and and then you know fast forward today they're basically almost out of consumer electronics I mean Samson's crush them and I work and I've worked with Sampson and and the thing the thing that they did they did a number of things but the thing that they did I thought they're so powerful was they understood the power of a compelling importance of a compelling value proposition and a value proposition is all the benefits you give to a customer and all the cost you save for them and in Samson's case it's all about the benefits there are three key benefits that they have starts are two key benefits and there is the cost so the two key benefits are it was about quality the quality was as good as Sony the second was design and that was a key one design is how a product works looks and feels if they're functional aesthetic aspects that design Apple is obviously great at design Samson is also great at design Sony is good but probably not as good as Samson so so I've got great quality I've got great design how our product works looks and feels and then I'm a more affordable so I'm actually gonna say save you money so that's the cost part of the equation so it's just a great value proposition so why not buy Samson why would you buy Sony qualities there designs there it doesn't cost as much so that's that's really how they overtook them and maybe that the pricing is changing some other things but so again power of a design functional aesthetic how a product works looks and feels and then you know it's really interesting they're trying to create more of a the Samson they've been working hard at that corporate credibility credibility I think is a really key concept it's what makes a brand credible what makes a person credible expertise trustworthiness likability you know you're good at what you do I can trust you that you have my interests or others interests in mind and I just enjoy you know being with you learning from me whatever it might be and in Samson's case they really work hard trying to be credible the advertising and everything that they do and this is the example so samson sentience so it's interesting is another korean company hyundais trying to do the exact same thing to Toyota so again quality design more affordable and they they aren't as successful as Samson is they're way more successful than I would have thought okay so let me wrap up branding is not rocket science okay my dad I'm not a rocket scientist but my dad was okay it's true story here's the Rockets nine he was in the Air Force he worked on Brock Hughes or rocket science he worked on rocket fuel he's actually from Missouri he was from Sedalia Missouri if anyone knows where that is it's a little bit southeast from Kansas City so if you go down south from here and eventually if you take the right turn zone up Sedalia and there he was third generation or fourth generation from Missouri and he's in the Air Force he was a physicist worked in rocket fuel and so he he read my textbook and he said Kevin that's really interesting but you know you know it's not really rocket science what you're talking about and so he would know that because he's a rocket scientist so he's got that trump card he can play and you said it very nicely and the point is he's ripe in some ways you know he's not right because of the rocket science there's actually a system of equations you can solve it's physics when I was a math major I would love to solve equations marquees and brains there's it's an unspecified system of equations so it's not quite as structured which is part of the challenge I think in some ways so I think it's an art in a science and I think it's going to depend you know and how creative you are and how original you are and how you actually develop your strategies and implement them and that's one reason I love it because I all these brands you can kind of see how that came across and you know again the hope is always improved the odds for success last thing I do is I just want to give you it for any of you interested in marketing I just career advice one quick slide and they'll see if you have any questions so the idea is so the first thing I say to be a thing I've observed seeing these marketers and what makes them great is a lot of them have this empathetic customer mindset empathetic consumer mindset they can relate to consumers they can project the consumers and that's really important because most likely you're selling to somebody different from you and different from your friends and different from your family so the ability to be able to do that is so critical to be successful I think in marketing second thing is to interpret marketing's friends there's so much going on and the ability to understand with social media with all these sort of developments how do I factor them in correctly and not overreact or under react I think it's great so that from a career standpoint I think it's really important you know I think developing a philosophy that one thing I've learned from these companies you know all these little lessons have influenced how I work with new companies or other companies so you sort of develop a philosophy you develop a set of tools that help you can solve in any problem that's the beauty you get from education that's the beauty you get from taking your classes in your courses is you learn things that you can apply to solve problems which is going to help you in terms of your career and how I built you build your own brands going forward you know I think lifelong learning is you know it's great that you're here great you're great you're a great University you have a chance to learn from you know great professors and all that but when you graduate you don't want to stop learning and that's true and marketing is true anything and I think the importance of you figuring out how you're going to continue to invest in your knowledge and your decision-making and the value you create for any company that hires you they'll help you with that but you've got to figure out how you take responsibility for yourself to do that and lastly have lots and lots of fun okay marketing is a lot of it's a great fun area so when I work with these companies it's just there's a lot of the projects are just so much fun so that's that's oh end with that so with that thanks so much for listening even if you did have to come and when wish you luck but I don't see any last questions I've got a few minutes so don't run off because we do my watch says right here I have a few minutes so my watch does not lie yes I was Nike what yeah you want to sort so story was basically so Phil Knight was a Stanford MBA was teaching in Portland he was teaching accounting in the university came up with this idea Blue Ribbon sports and all this but wanted a rebranded his Nike and so he actually hired somebody to come up with designs they she came up with I think eight or ten designs they didn't like any of them this is the one they hated the least okay and they paid $35 for that logo so other questions more trivia more trivia come on that's a great question it's Louie because that's the thing I'm important that is that's been a great investment for them other questions yeah and I'm sorry I'm supposed to repeat the question so that answer was all about this how much does this the swoosh logo cost yes what's that yeah you know the thing is for me it's it's um I was math economics I thought I was gonna go into finance and I took a marketing course and the thing about marketing that I that attracted me is I felt that's what businesses were all about you know it's not about counting money it's actually dealing with you know consumers trying to satisfy consumers out competing other companies I just love that idea and the maths that comes into play because there's still that discipline in the and how you analyze and break down problems but I think that like I say it's an art and a science and that's the beauties you get to bring the other side in that maybe you don't as much in finance in some other areas and nothing wrong with that it's just different so application yeah other questions you still got a minute minute twenty maybe a minute thirty my watch may be fast I'm not sure questions all the way back oh yeah besides money mostly money actually so executive producer right it's it's I'm a patron of the arts it's called rock and roll philanthropy but the main thing is great band I'm glad you give me a chance to make a plug that van I've worked with for the last 20 years main thing is to try to get them just to recognize modern marketing techniques I think it's interesting and one of the things I've done in the with rock bands but also with like the Mayo Clinic all these places that never think of having to market is to get them to realize you've got a brand you need to market and that's what I would do with them was try to get them to literally think about that and what's the best product they should sell how should they sell it so just getting the thinking that especially in a modern way because you need so many things now so 30 seconds 30 seconds without for thanks one more question I hate to waste time I came so far you've got you've got 25 seconds yeah yeah all the way back that's a great question so questions really so what's the most useful thing I think for a small business I think I think it's I think the key that one is their brand matters and I think having a really clear focus I think you you can't do as much as a big company you have to focus in on a simpler message a more direct message your marketing as many different kinds of marketing but but those that you do and that message has to be powerful and I think that's the really really key thing so whether I'm working with nonprofits who have some of the same issues or small business that's always get them to understand and again it's all about differentiation I got to figure out what makes me unique I got to sell that hard and I'm gonna make sure people understand that so alright my time is truly now up so thank you very much thank you