Transcript MarkED Conclave `06

Michael Keller
Chief Brand Officer
American Dairy Queen
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Everything Communicates!
Building A Brand
By “Delivering the Promise”
Through It’s Consumer
Touch Points
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Brand Building 101
Brand Equity
Trust
Making the
Promise
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Delivering the
Promise
What Is A Touch Point?
Any
Contact Point
Between A Customer
And A Brand
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Everything Communicates?
Yes, Whether We
Like It or Not,
Or Whether Customers
Realize it Or Not.
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Everything Communicates
Key Implication
Brand building extends way beyond
‘Marketing’. In some cases, ‘Marketing’
might be one of the least important ways
to build a brand…
Or
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…Maybe ‘Marketing’ really includes all
company activities/functions that impact
the brand and consumer in any way
Think Beyond
Beyond
Beyond
Product
Service
To the
Experience
a Customer Has With All of a Brand’s Touch Points
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Putting It All Together
Through all of a brand’s touch points, the
“product” and the consumer’s experience
with it, must deliver on the brand promise to
ensure the desired emotional connection is
made with a customer.
Who’s job is this?
Each function that ‘owns’ a touch point.
Who should oversee/lead this?
Brand Champions…”Marketers”
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A Little Happy DQ History
• A 66 year old brand with 5,500 units over 4,000
franchisees and $2.5 billion in sales
• Born from a remarkable epiphany/invention
• Began “franchising” before franchising was born
• Became synonymous with treats and a/healthy
nutritious, happy America
• Acquired by Warren Buffet in 1998
• Today enjoys universal brand awareness
• Most importantly, the brand obtains a strong,
emotion-filled response…a smile and a story
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A Little Scary DQ History
• A highly fragmented food system with
low food awareness and credibility
• An old, tired, diverse retail asset base
(locations, facilities, operations)
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Flat Top
A Little Scary DQ History
• A highly fragmented food system with low
food awareness and credibility
• An old, tired retail asset base (locations,
facilities, operations)
• A multi-decade period of stagnation
• A high-level of mistrust and animosity
between franchisee and franchisor
• A rapidly shifting and increasingly
competitive landscape
• A brand shaking on the edge of
irrelevance
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A New Approach:
Corporate/Enterprise
• New CEO
• New vision and business goals including a
focus on becoming a food player
• New strategy-driven structure
• New outside talent hired, internal talent
promoted
• New business units and department plans
• New trust-building posture with
franchisees
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DQ Brand Touch Points
Brand
Experience
Product/Menu
Product Quality
“Advertising”
Speed of Svc.
Locations
Facility (Ext.)
Customer Svc.
Facility (Int.)
DQ Brand Positioning
A Smile and a Story
• Everywhere we go, we always get “a smile
and a story”
• There is rare/powerful emotion for the DQ
brand
• This is the essence of who we are, it’s
what makes us “Something Different”
• Beyond products, advertising, store
design, operations and customer service,
this may be our true long term strategic
advantage, but…
• …only if we recognize it, take care of it
and build it in everything we do, every
day, in every store, with every customer
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Workin’ the Wheel
DQ Brand Touch Point
Strategy/Action
Locations
Strategic Development
Exterior
“Modernization”
Interior
“Modernization”
Customer Service
Operations “Road Map”
Speed Of Service
Operations “Road Map”
Product Quality
Operations “Road Map”
Menu/Product
Innovation Funnel
“Advertising”
Re-Positioning the Brand
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A New Approach:
Brand Team
• New strategy demanded new structure which
required new talent
• Defined and began leveraging and executing
against new brand identity and positioning
• Challenged and elevated every key element of
the Marketing Mix:
–
–
–
–
–
–
Menu/Product Strategy
Calendar Strategy
Advertising: Creative and Media Strategy
Promotion Strategy
Merchandising Strategy
PR Strategy
• Restructured/Re-focused franchisee leadership
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Creative Reel Highlights
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Some Business Results
• 25 consecutive months of comp sales
growth: July ’03 to July ’05
• 33 of the last 36 months of comp growth
• Leading national QSR in 2004 in comp
sales growth (beat McD’s and SBUX)
• Award winning advertising
• AUVs up 25% ’05 v. ‘01
• Ad Funds at highest levels
• Franchisee profitability at highest levels
• Franchisee Investment beginning to occur
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That’s The DQ Story,
How Can You Teach It?
• What is a given brand’s promise?
• What are it’s touch points?
• Is it delivering on it’s promise through all of them
or are there plans to do so?
• Is there functional alignment between teams that
touch the consumer and in turn shape the brand?
• Is the company/team structured the right way?
• If yes, does it have the right talent in the structure
to achieve it’s goals?
• What is the brand champion doing to provide the
leadership necessary to build and protect the
brand through all of it’s touch points?
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Thank You!
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