Leadership Equity Model

A simple way to understand how iconic brands connect with their consumers and what is their dominant source of equity

There are basically 4 universal human needs:

1. 2. 3. 4.

Doing Being Growing Belonging

What is the Best Way? Who am I? I want to become Better. I want to belong to a Larger World.

Great brands tend to fulfill these basic human needs in specific ways:

NEED
1. 2. 3. 4.

HOW
What is the Best Way? Who am I? I want to be Better. I want to belong...

EQUITY TYPE
POWER IDENTITY EXPLORER COMMUNITY

Doing Being Growing Belonging

Power Brands
Equity type Power Need Doing Consumer connection It does this best for me Relationship Brand/Consumer
ME

IT

 Offer consumers a solution for doing something best/ better  Core of their equity is perceived superior functionality  Communication is often focused on their performance benefit  Often demonstrated in hyper-rational to highly emotional ways  Constantly need to innovate to stay ahead on superiority

Ariel (Cleanest clothes)FedEx (Reliable delivery)

Identity Brands
Equity type Identity Need Being Consumer connection This is me Relationship Brand/Consumer
ME IT

 Offer consumers a way or representing themselves  Build a connection through user attitude and imagery  Communication centers on making the identity link The who being as important as the what  Emotions relate to self expression, identification Constantly need to stay contemporary and competitive Pepsi/MTV (Cool, Youth) Persil (Caring Mom)

Explorer Brands
Equity type Explorer
    

Need Growing

Consumer connection I can become ..

ME

Relationship Brand/Consumer
IT

ME

Explorer brands tap into a persons desire to grow, learn and test ones possibilities: How can I improve? Advertising offers an invitation to explore; the possibility of improvement, new experiences, adventure Emotions relate to achievement, pride, excitement Many brands are in new categories/ represent new ideas Innovators and Early Adopters are often the target

Microsoft (efficiency, in-control) Nike (sporty, winner)

Community Brands
Equity type
Community

Need
Belong

Consumer connection
I want to belong to this..

Relationship Brand/Consumer IT
ME

 Community brands invite people to be a part of their world  A high-ground for people, values, experiences  They express and identify themes & ideas which appeal to aspirations  Consumers willingly enter this world to share those values Their community could be large or small, depending on their target group Disney (fantasies of eternal childhood)Marlboro (machismo of the American West)Coke (world of universal optimism)

Emotional

Identity brands- BE
offer emotional benefits literally

Community brands- BELONG

promise emotional benefits symbolically

Literal

Symbolic

Power brands- DO
offer performance benefits literally

Explorer brands- GROW

promise performance benefits symbolically

Performance

A brand within any of the types can be iconic Brands may also shift types based on their strategic intent NIKE started out as a Power Brand and moved into being an Identity Brand and is now an Explorer Brand