[MUSIC] Hi, welcome back. In the last lecture, we discussed the model to develop your brand strategy. The focus of this lecture is to deep dive into the brand essence and learn how you can define one for your brand. If you recall, we begun with our peach. At the center of our peach, we had the seed which is the core because is what allows us, the fruit to last over time. The same happens with a brand essence. It is the heart and soul of the brand. We should last a long time. In three to five words, it phrases the highest order customer benefit that the brand delivers. It summarizes our key promise. Let's look at some examples. Please note that these have either been mentioned in the press by the brands or inferred by their published materials. Google. Google's original essence was to organize the world's information and make it more accessible and useful. Notice how this provides a clear strategy for anyone within the company. It should focus their work. Their map application, their mail application, their news application, all fall under this essence. You might be asking yourself, what does this self-driving car have to do with essence? Well, I expect that Google will either launch a new brand for their product or revise their brand essence to accompany other strategic areas which they might be working on. Apple, Apple's brand essence is empowering people through technology. Notice how this is much broader than Googles, and it composes any product from their pipeline that has been develop today. At the same time, it provides clarity for employees. If a product does not somehow empower people through the use of technology, it is not for them to develop. Disney is in brand essence is magic family fun. And every product or service under the Disney brand is addressed at providing magic family fun for their target audience. Again, notice that when Disney purchased Marvel Studios, which does not fit under its essence, the brands were kept separate. Disney also owns other brands like Touchstone Pictures, which doesn't fulfill this brand essence and thus has a different brand all together. BMW, BMW brand essence is to provide sheer driving pleasure. Notice that how this is different than Mini, or Rolls Royce which are also owned by the same group. BMW is not about performance or engineering. It is about providing driving pleasure, which is an emotional benefit. So how can we define your brand's essence? Let me share the possibilities that we have by looking at the hierarchy of benefits in the brand essence. On the bottom of the pyramid, we have functional benefits. In answer of the customer question what does this brand provide? Or looking at it from your angle you are telling customers that owning this brand delivers a specific functionality and utility to them. On the middle pyramid, we have emotional benefit in answer to the customer's question. How does this brand make me feel? Looking at it from your angle, you're telling customers that owning this brand influence how they feel about themselves and their choice of brand. This feeling occurs every time the product is used. On the top of the pyramid, we find a self-defining benefit. It answers the customers question, what does this brand say about me when I own it? We're looking at if from your angle. You are telling customers that by owning this brand, they define who they are and how they want to be perceived and stand out by others. Notice how functional benefits are easier to develop. They're less relevant and easier to copy. As you move up the pyramid, benefits become more relevant for customers and more difficult to copy. But they are also tougher to develop and keep. Let's look at an example of luxury watches, comparing Rolex versus Brightling. Rolex states that owning a Rolex demonstrates that I am successful, confident, and I can expect to be respected and admired. Heuer Brighton is also a very succesful brand that addresses a different customer. And their anchor benefit from brand instances needs, Brighton has technologies, experiences and people to build a product that is exceptionally robust, reliable and precise. Can you identify which type of benefit each brand essence has? If you said the Rolex uses a self defining benefit and Breitling uses a functional benefit, then you have fully understood the hierarchy of benefits. If you haven't, I encourage you to go back and revise it. Be aware these brands might have supportive benefits, not part of their brand essence, they're different. For example indication for Rolex, it could be that owning a Rolex makes me feel proud and important. Well, the Rolex offers quality, precision and durability. So how do we define which ones to use. Depending on the market context and the competitor's strategy, either of the three types of customer band can be used to define the brand essence. More to come on the next lectures. Before we continue, let me mention some important caveats. Brand assistance around emotional and self defining benefit require a strong functional foundation, or otherwise they will fail. For example, BMW needs to deliver on the functional benefits related to drive pleasure. Another one is marketing investments required to sustain brand identity with emotional or self expressive essences are typically higher than those to build brand identities based on functional benefits. Functional benefits can drive a variety of emotional self defining benefits. Making them the better choice for brands that target multiple customers that commends with different emotion or self defining needs. Example, Nike. Nike targets both athlete and fashion conscious consumers with very different emotional needs. And therefore, it anchors its essence on functional benefits, authentic athletic performance. Watch out. A brand essence is not a slogan or a tagline. These are created from the essence or the positioning to translate the desired message into consumer language. For example, GE's essence was solutions to help solve some of the world's toughest problems, and for years the tag line was imagination at work. Following a specific position concept. Or Apple's empowering people through technology, and for years of tag line was think different. Therefore, a brand essence is a long term promise commitment to all stakeholders. It acts as a beacon for the organization providing direction and inspiration in what the brand is all about. A tag line on the other hand is a short term message. It only lasts from 12 to 18 months. It evolved with a market and a position to keep relevant, but it acts as a platform to communicate the brands benefit to all stake holders. Now that we have the knowledge to finer brand essence, let's focus on our brand values which is the topic of our next lecture. See you there.
