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Value of difference tr 20.3.19
- 2. DIFFERENCEISFARMOREPROFITABLE Operating in uncontested market space is far more profitable than competing for a share of an existing market. A study of 108 business launches from 2004 showed that the 14% competing in uncontested market space (‘Blue Oceans’), achieved 38% of the total revenue impact and 61% of the total profit impact. Whilst the majority of 86% business launches were competing in existing markets (‘Red Oceans’), only achieved 39% of the total profit impact. Source: Blue Ocean Strategy, Kim & Mauborgne, 2004
- 3. DIFFERENCEDRIVESBRANDVALUE Over a three-year period from 2015-2017 brands that were perceived to be both highly disruptive and different increased in brand value by 28%, whereas brands that were perceived as both low in disruption and differentiation declined by -5% in an analysis by Kantar Millward Brown. Source: Kantar Millward Brown, BrandZ, 2017.
- 4. DIFFERENCEISASTRONG PREDICTOROFGROWTH Brands which people score strongly for both meaning and difference grow sales around 8.2% better in the following year than brands which score poorly, with difference being responsible for at least 50% of the predictive power. Source: Admap April 2017, ‘Establish KPIs that grow brand equity’, Josh Samuel, Kantar Millward Brown’
- 5. PEOPLEWILLPAYA PREMIUMFORDIFFERENCE Kantar Millward Brown analysis shows consumers will pay more for brands they find meaningful and different. Meaningful and different brands can charge 22% more than competitors that aren’t and difference alone accounts for 40% of this on average. Source: Millward Brown R&D study: Shopcom and FlyBuys loyatly card data merged with equity survey responses at respondent level. Based on comparing a composite score built from meaningful and different to price paid for actual brand purchases of 2400 consumers. Analysis includes 79 brands. Low = bottom 25%, Medium = middle 50%, High = top 25% on Premium score built from meaning and difference
- 6. DISTINCTIVENESSISHIGHLYMEMORABLE The 'Von Restorff Effect' predicts that things which differ from those around them are more likely to be remembered. Similarly, ‘The Bizarreness Effect’ predicts that incongruent or surprising things are more memorable than expected and common ones. Source: McDaniel & Einstein, ‘Bizarre imagery as an effective memory aid’, 1986). Pick, D. F., Sweeney, J., & Clay, J. A. (1991). Creative advertising and the von Restorff effect. Psychological Reports, 69(3), 923-926
- 7. DISTINCTIVEADSLOGANS AREMOREMEMORABLE Research into the Von Restorff effect in creative advertising found that highly distinctive ad slogans are much more likely to be recalled, but only if they’re judged to be high quality and not if they’re substandard. Source: Pick, D. F., Sweeney, J., & Clay, J. A. (1991). Creative advertising and the von Restorff effect. Psychological Reports, 69(3), 923-926
- 8. DISTINCTIVEBRANDASSETS DRIVEADRECOGNITION Advertising featuring known distinctive brand assets achieved an average +34% higher advertising recognition in a study by Ehrenberg-Bass Institute. Source: WARC webinar ‘Brand Assets as a Source of Strength, Jenni Romaniuk, 2014
- 9. ADSTHATMAKEBRANDSSEEM DIFFERENTAREMORELIKELYTODRIVESALES The top 1/3 ads for 'make the brand seem really different’ in Kantar’s Link database achieve +90% vs the bottom 1/3 on Kantar’s measure of an ad’s likelihood to drive short-term sales (STSL). Source: Kantar analysis of the Link Database. Short-term Sales Likelihood (STSL) is a measure that is strongly predictive of sales shares increases
- 10. DISTINCTIVECAMPAIGNS AREMOREPROFITABLE ‘Distinctive brand campaigns’ featuring recognisable brand ideas & assets achieved a +62% stronger short-term profit ROI vs campaigns which didn’t in an analysis of 1300 campaigns by Ebiquity. Source: Ebiquity analysis quoted in ‘Rembrandt in the attic’ by BBH/Weetabix/Ebiquity.
- 11. DISTINCTIVEAUDIADSCORRELATEWITHSALES Distinctive Audi advertising correlates with increased media driven sales (relative to total volume sales) between 2015-2017. Source: Kantar Media Millward Brown Audi Advertising Distinctiveness Index (How strongly do you agree or disagree that the ad makes you think this brand is really different from others?) Marketshare Econometrics: share of total volume sales that are media driven (indexed to 2015 levels for confidentiality)