P × C
× U =
x
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What is the main purpose of this tool?
The main purpose of the Brand Difference Index is to inform and facilitate a discussion about the similarities and differences that exist within the international brands we work with. If we do this intelligently we will have a better idea of how similar or varied the work needs to be in different markets.
Where in the process should this tool be used?
This tool should be used in the Discover part of the process. When we are thinking about how our international brands communicate in different parts of the world, understanding how similar the brand is, or how many differences exist will help us to think about whether a single universal approach will work, or whether we need to be more flexible to take account of the differences that exist.
You can use this tool on your own, with other people in the agency, or with your clients. It is particularly useful if you use this tool with people from the central or global parts of the agency or client, along with people from the regions or key markets at the same time. By doing this you will have a shared understanding of what the brand is like.
How does this tool work?
The Brand Difference Index is a mathematical equation in 3 parts. However, you should know right now that just because it’s mathematical doesn’t make it scientific. It is just a way to try to understand more about our international brands. It’s not necessarily the answer!
How to use this tool?
The three parts of the equation represent product range (P),
consumers (or customers, or clients — C) and usage (U). For each of the parts we want to assign a number that represents the number of differences that exist in the world.
So when we think about the P number for product range we want to understand how many differences there are in the product range around the world. If a brand has one range for large developed markets like the USA, and another for emerging markets like India then this would count as 2 different product ranges and the number would be 2. If a brand has a different range in all the markets that it does business in then this would mean lots of differences, maybe even 100s, and the number would be a high one. If a brand has the same product range all around the world then this would mean no differences and the number would be 1. Working this out gives us a numerical value that is the P number.
Brand Difference Index
When we think about the C number we want to understand how many differences there are in the types of people, or consumer groups that use or participate with our brands. If a brand is primarily sold to old people in one country but young people in another (like whiskey in the UK vs China) then this would count as two different groups, and the number would be 2. If the brand is a mass market brand in one part of the world, a business person’s tool in another, and a trendy device for teenagers somewhere else (as often happens with mobile phones), then this would count as 3 different groups. If the brand is sold to the same types of people or consumer groups everywhere then this means there are no differences and the number would be 1. Working this out gives us a numerical value that is the C number.
When we think about the U number we want to understand how many differences there are in the way that the brand is used. If the brand is used in one way by one group (for example business people use laptops for word processing, email and the internet) and in different way by another (teenagers use laptops for gaming), then this would count as two usages and the number would be 2. Some brands have many usages, and it is worth exploring them all. On the other hand if the brand is only ever used in one way, the number would be 1.
Working this out gives us the U number.
Once you have worked out the P number, the C number, and the U number, you simply multiply them together. If you get a high number, then your brand has a lot of difference. If you get a low number then your brand has few differences. Remember the number that you get is not an answer to what you should do, it simply helps you to understand your brand better. It is useful to compare the scores for your brand, its competitors and others. This can provide very useful context, and will help you understand your brand even better.
If your brand has a high score then it is more likely that you will have to think hard about how you approach how it is marketed and communicated around the world. Often brands with high scores need to have lots of different campaigns to reflect the differences in the brand. It is unlikely that a brand with a high score will be successfully communicated with one campaign, and even less likely with
one execution.
If your brand has a low score then it is more likely that your approach to marketing and communications will be more similar than different internationally. Often brands with low scores can develop more consistent campaigns based on international similarities in the brand.
It is sometimes the case that brands with low scores actually create inefficiencies by not leveraging the similarities.
By calculating the Brand Difference Index you will be able to learn a lot more about how your brand operates around the world, what is different and what is the same. This is critical information for planning how to approach communicating the brand internationally. Remember
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though, the number is not the answer! The numbers that you get are just ways to understand your brand, and should be used as information in the discussion and development of the things we make.
EXAMPLES OF THE BRAND DIFFERENCE INDEX
— iPods have 1 product range sold all over the world (P
= 1), with the same mass audience (C = 1), and they’re used in the same way (U = 1). So the Brand Difference Index for iPod is 1 × 1 × 1 = 1. It’s not a surprise that the iPod marketing and advertising is very similar around the world.
— Ford has several different product ranges, with bigger cars and trucks sold in America, and smaller cars in Europe, and a combination in Asia (let’s say P = 3).
Likewise there are several different consumer types that buy these different types of vehicles (let’s say C
= 4). And of course, a truck is used differently to a small town car (let’s say U = 3).
So the Brand Difference Index for Ford would be 3 × 4 × 3 = 36. It’s easy to understand why Ford has multiple campaigns in different parts of the world.
Brand Difference Index
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