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Managing Brands Over Time

A brand that doesnt change over time fossilises andloses relevance

- Jean-Noel Kapferer

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TODAYS AGENDA

ig !air" A#dacio#s $oals%hin&ing abo#t short-term

ob'ectives

(arl" )arning bells*tarb#c&s +rive-%hro#gh

,indo)

*alomon - A case for

change

anaging rands .ver

%ime

o %he /hallenges

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Big Hairy Audacious Goals

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Big Hairy Audacious Goals

!A$ #sed to stim#late progress to)ards the vision

%a&es the form of a h#ge da#nting challenge

(ngages people - reaches o#t and grabs them in the g#

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The rs! "ommercial #e! liner$

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%%Be&ore This Decade 's Ou!%%$

This nation shall committo achieving the goal,

before this decade is

out, of landing a man on

the moon and returning

him safely to earth

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%%To Become () or *%%$

To become #1 or 2 in

every market we serve

and revolutionize this

company to have the

speed and agility of a

small enterprise

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A +) ,illion "om-any in . years$

1977 tobea!1billioncompany in" years#doubling its size$ 1991 to be a!12%billioncompany by2&&&

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A/0AYS S%M%A%1%T2

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/e!s have Some 3un2

M4TG 56678 has ,een !as9ed ,y our dean !o develo- aBHAG &or !he Schulich School o& Business !o cele,ra!e i!s67!hanniversary and clari&y i!s as-ira!ion &or *7*7%

A +):777 -ri;e is ,eing -rovided !o !he !eam o& !he chosenBHAG%

0or9ing

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Thin9ing A,ou! Shor!=!erm O,>ec!ives

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/e!s have Some 3un2

%hin&ing abo#t short-term ob'ectives

9o# are :P ar&eting for !arr" ;osen< an #pscale mens)earclothier +#ring the (/s b#dget presentation to the oard of+irectors "o# proposed a sales gro)th of 53= and a strongincrease in the bottom line for >2814

Altho#gh pleased )ith this #pbeat b#dget< the /hairman )asdisappointed to hear that the (/ had not e?plained the short-termob'ectives on )hich these pro'ected b#siness res#lts )ere based

%he President @ /(. has as&ed that "o# meet )ith "o#r colleag#eson the rand /o#ncil and determine an appropriate set of short-

term ob'ectives so that the (/ can better comprehend ho) "o#)ill achieve the pro'ected sales gro)th ,hat )ill "o# propose,h"

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Se!!ing Shor!=!erm O,>ec!ves

/B;;(N%/B*%.-(;*

N(,/B*%.-(;*

*(%%CN$.J(/%C:(*

,heres theb#siness goingto come from

,hat am C tr"ingto achieve

C ,AN% %.K((P -9

/B*%.-(;*

C ,AN% %.$;., -9

/B*%.-(;*

C ,AN% %. $(%N(,

/B*%.-(;*

!o) )ill )eachieve o#rob'ectives

A%%C%B+(*

A/%C.N*

A%%C%B+(*

A/%C.N*

/B*%.-(;*A%C*>A/%C.N

,hat )ill )emeas#re

(-PD.9(((N$A$(-(N%

/B*%.-(;A/%C.N*

P;.*P(/%*A%%C%B+(*

PB;/!A*(A/%C.N*

/B*%.-(;*A%C*>A/%C.N

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The "us!omer 3unnel

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The 3unnel in !he Digi!al Age

'avid () *delman, +randing in the 'igital -ge. /ou0re pending /our oney 3n all The 4rong 5laces67

8arvard usiness 9eview, 'ecember 2&1&

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Early 0arning Bells

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/e!s have Some 3un2

(arl" )arning bells are important as lead indicators of b#sinesshealth

:er" pleased )ith "o#r ne)l" artic#lated short-term ob'ectives< %hePresident @ /(.< has '#st noted that "o#r plan is missing one otherimportant aspect

*he has as&ed that "o# meet )ith "o#r colleag#es on the rand/o#ncil and determine ho) "o# propose to trac& "o#r progressto)ards meeting "o#r short-term ob'ectives d#ring the ne?t Escal

,hat do "o# propose to meas#re as lead indicators of the health of

"o#r b#siness and performance ,h" do "o# consider these to beimportant

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S!ar,uc9s Drive=Through 0indo

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S!ar uc s Dr ve=T roug0indoorFAgainst

o (?plain ho) "o# )o#ld do itF,hat "o# )o#ld do in itsplace

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1einven!ing !he Salomon Brand

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1einven!ing !he Salomon Brand/e!s Have Some 3un

*pit into pro'ect teams

o +escribe the *alomon challenge in 1773 ,hen )as itrevealed ,hat broad macro factorGsH )ere creatingthis challenge

o ,hat )as *alomons immediate repsone ,h" did itfail

o rieI" describe the high level strateg" chosen b"*alomon for reinventing itself and b#ilding its brand

and b#siness for the f#t#re

o +etail the speciEc actions it too& to s#pport this highlevel strateg"

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1einven!ing !he Salomon Brand%he *cenario

Ne) h"pothesis emerged at 1773 planning meeting

%eenagers giving #p s&iing to ta&e #p sno)boarding

%raditional )inter sports at heart of *alomon rep#tation

Cdentit" s"non"mo#s )ith s&iing< the leader in the bindingsafet" fastening

Ne) sno)board range at )inter sports e?hibition failed toattract interest

%he anti-model of ne) generation of anti-conformist< sno)s#rfers )orld)ide

*alomon val#es individ#alit"< beating competitors< order andhierarch"

*no)boarding val#es f#n< gro#ps< friendship< anarch"