How a smaller player is successfully taking on the global giants

CHALLENGER BRANDING

Grant JohnsonChief Marketing OfficerPegasystems Inc.

Ray BairdPresidentRiechesBairdBranding Business

TM

Taking on the big boys

By Jessica Shambora, writer-reporter

The challenge: Oracle (ORCL) dominates the software industry. Why should anyone take a chance on an upstart?

What they did: Pega’s sales of $264 million barely register compared with Oracle’s $26.8 billion in revenue. So how does Pega founder Alan Trefler win business from clients like J. P. Morgan Chase (JPM) and New York Life?

The Cambridge, Mass., firm is the leader when it comes to business process management software. These computer programs save companies by automating complicated, labor-intensive tasks. For instance, Pega built software for an automaker that enables computers, instead of people, to do most of the work when warranty claims are filed. Pega beat rivals by giving clients what they want: purpose-built software that is simple to use and flexible enough to adapt to their constantly changing businesses.

NOVEMBER 8, 2010

Thirteen successive quarters of record revenues

THE RESULT THE RESULT

$ Millions

Pegasystems helped to create and dominates the BPM category

OWNING A CATEGORYOWNERSHIP OF THE BPM CATEGORY

So, what’s the problem?

Stack attack! IBM and Oracle use the power of their brands

THE CHALLENGES OF GROWTH

Stack Attack! IBM and Oracle use the power of their brands

Aggressive sales targets

“Our brand should have more of a role in helping sales. The current brand doesn’t provide a whole lot.”

THE CHALLENGES OF GROWTH

Stack Attack! IBM and Oracle use the power of their brands

Aggressive sales targets

Talent acquisition and cultural cohesion

“In the next three years we will double in size - again. We need a strong brand to attract management talent and maintain the culture of the company.”

THE CHALLENGES OF GROWTH

Create a Pega brand as powerful as our business proposition

OPPORTUNITY

Phase I:Brand

Assessment

Phase II:Brand

Development

Phase III: Brand

Execution

Information review

Brand assets review

Visual brand audit

1:1 interviews

Competitive review

Document, present findings

Develop brand positioning and value proposition

Competitive brand analysis

Customer insights/research

Brand system development

Acquisition integration

Brand system development

Tactical planning & execution

Internal roll out & education

Web site development

External brand launch

Campaign execution

January April July October

TIMING AND PROCESSBrand Development Process

Inconsistency: imagery, composition, voice; “sea of blue” sameness

THE CHALLENGETHE SITUATION

IBM, Oracle, TIBCO, Salesforce

THE COMPETITIONTHE COMPETITION

The competition has powerful, trusted brands

We must:

• Articulate our vision – attract, inspire talent

• Rise above the industry noise of BPM

• Deflect “stack attack” commoditization by software giants

• Establish a strong brand foundation to foster growth

• Support sales with a business-focused brand proposition

SUMMARY & CONCLUSIONSSUMMARY

Brand Equity

THE BRAND OBJECTIVE

Create a strong, overarching masterbrand that transcendsthe detail of product and service features

To rise above the noise, clutter and jargon of BPM and express the transformational value Pega brings to its customers.

THE BRAND OBJECTIVE

“Delight”

Pega Quadrant of Opportunity

Flexible

Rigid

TechnologyEmphasis

Business Emphasis

POSITIONING PEGA

“Delight”

Pega Quadrant of Opportunity

Flexible

Rigid

TechnologyEmphasis

Business Emphasis

POSITIONING PEGA

“Delight”

Pega Quadrant of Opportunity

Flexible

Rigid

TechnologyEmphasis

Business Emphasis

POSITIONING PEGA

Transformation

Innovation

Improvement

TechnologyEmphasis

Business Emphasis

Flexibility

Rigidity

Disruptive

POSITIONING PEGA

Transformation

Innovation

Improvement

TechnologyEmphasis

Business Emphasis

Flexibility

Rigidity

Disruptive

POSITIONING PEGA

Statement 1

Pega makes continuous business improvement a reality

Organizations today face the challenge of continuous and accelerating change. Pega enables businesses to handle rapid change every day by streamlining business processes and automating work. By directly capturing business objectives, Pega’s software works the way people think, allowing the business to continuously improve.

Statement 2

Freedom to Innovate.

Today, organizations need to be fast-moving and nimble. Ideas need to become reality quicker. Pega’s new class of software allows organizations to respond to market opportunities rapidly, turning insight into action and change into opportunity. Pega makes it possible for business people to experiment and test the edges frequently, thus freeing them to innovate and drive business forward. Think it. See it. Make it happen.

Statement 3

Transforming the way business works.

In today’s global economy, successful organizations must be able to continually set the pace. High levels of competition in every industry are forcing organizations of all sizes to find new ways to respond quickly and effectively to meet changing customer demands. Pega’s living software enables companies to continuously adapt, evolve and renew - transforming the way the business responds, works, and competes.

Statement 4

The new way business works.

Pega offers a revolutionary new way for business to work. Using a new class of living software that doesn’t require any manual coding, Pega liberates business managers from the constraints of the traditional and lengthy software development cycles. By automating both the programming and the work, a new capacity for growth emerges, enabling companies to transform their business, reshape the broader market, and achieve significant competitive advantage.

POSITIONING PEGA

TESTING THE FOUR CANDIDATES

Online “Highlighter” tool used to gather qualitative/quantitative input during annual PegaWorld event.

106 respondents, about 50/50 business/IT.

Identified strengths/areas for improvement for top statements.

Next steps: refine positioning statements to be validated in a second phase of research among the wider Pegasystems’ user community.

Develop

ValidateTest

The Heat Map shows how many people highlight specific text elements – positive or negative – with color intensity

The Character Map shows frequency of highlighting, character-by-character

Open-ended comments are linked to specific copy points

TESTING IN REAL TIME

Concept 3: Transforming the way business works

Concept 1: Pega makes continuous business improvement a reality

Concept 2: Freedom to

Innovate

Concept 4: The new way business

works

TESTING RESULTS

Two Positioning statements tested strongly

The two finalist concepts were further developed for validation in the Pega user community.

252 respondents, about 30/70 Business/IT.

Report identified top performer, and strengths/areas for improvement for both top statements.

VALIDATION AMONG CUSTOMERS

Develop

ValidateTest

Transforming the way business works

Increasing competition is driving organizations to respond quickly to changing customer demands and seize market opportunities.

By directly capturing business objectives, streamlining business processes and automating work, Pega provides companies with the agility and speed to continuously adapt, evolve and renew – transforming the way businesses respond, work and compete.

FINAL BRAND POSITIONING

How can we bring transformation to life as a brand?

BRAND EXPRESSION

Build for Change®

Passionate/Dedicated, relentless, pioneering

Engaging/Approachable, collaborative, insightful

Genuine/Trustworthy, enduring, ethical

Adaptive/Nimble, resourceful, savvy

BRAND PERSONALITY

Pega Brand Identity System

Brand Elements

Online & Digital

Print Systems

Signage & Environment

“OWN THE CHANGE”

OWN THE CHANGE

®

Brand/Marketing Continuum 2011

BRANDING BUSINESSTM

Transcend feature and function

Great companies are built on great products. But no

company can survive on product innovation alone.

Competitors can imitate them overnight, customers don’t

always choose rationally, and perceptions and

relationships matter.

Define, dramatize, and connect! Deliver the real value of

your company and products.

Number 1

Owning a category can differentiate you, but it is not your brand

Category leadership can define you as a pioneer or add

clarity to your unique solution. But it can also accelerate

commoditization. You are not just SCM, CRM, or SOA.

Define yourself; don’t let the category define you.

Number 2

You are more than the sum of your parts

Asserting your total value does not stop at positioning. Your

brand architecture must drive conversation towards your

business goals. It must rationalize your product families,

suites, solutions, and subsidiaries. It must support your

brand promise, and make it easier for customers to

understand, find, and buy your products and services.

Number 3

Align your organization to deliver on your promise

Powerful, enduring brands are built by informed, inspired,

and empowered people who deliver your brand promise at

every opportunity. Your people are your brand: they must

understand your brand promise, its importance, and how

they can deliver on it on their every day jobs.

Number 4

It’s an M&A world. Be prepared for seamless change

Mergers and acquisitions will continue to change the face of

your business. Rigorous positioning – to assure that your

relevance is not built on technology, but on core principles

enhanced by technology – will ensure that you are properly

positioned for growth.

Number 5

DE-COMMODITIZE!

Branding BusinessTM

THANK YOU

For more information about Branding Business contact:Ray Bairdray@riechesbaird.com1 WrigleyIrvine, CA 92618949 586 1200www.riechesbaird.com