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Corporate Rebranding at Shawcor: Measuring and Implementing Brand Promise


Strong brands are not only important for customers, but also to the investors of a firm. Companies with strong brands obtain stronger financial results by reducing cash-flow volatility and customer churn. Strong brands also help companies to expand markets by facilitating new-product trial, improving customer retention and cross-selling.

A large-scale study¹ compared the stock-price performance of companies with strong brands to a benchmark group by asking: how would $100,000 invested in each group grow over a period of time?  $100,000 invested in companies with the 111 brands on the “World’s Most Valuable Brand” list grew to $452,500 over a 6-year period, compared to the benchmark group which increased to $319,500. This represents a 41.6% gain for the “World’s Most Valuable Brands” relative to the benchmark.

Branding in Multidivisional B2B Firms

To build a successful and truthful brand, firms must identify strategic areas that are most important and execute those strategies. Differences among customers should be accounted for in a firm’s brand development, deployment and ongoing programs.

This presents unique challenges for B2B companies, especially those with a multi-divisional structure as they offer complex value propositions to customers that are not easy to quantify. Different divisions have different products, with different value propositions, for customers in different parts of the world. All this complicates the development of a unified, coherent and implementable brand positioning.

Case Study: Shawcor

We recently worked with a client confronting these exact issues. Shawcor has a market cap of $2 billion, operates in the oil and gas industry, and provides both products and services to its clients in the onshore and offshore sectors. It has four different divisions serving customers in all parts of the world. The divisions offer stand-alone products and services that are used by many of the same clients and in large-scale projects.

We used a data-driven approach to understand Shawcor's customer needs as inputs to developing a strategic approach to branding.

Brand Re-Calibration at Shawcor

As a starting point, we performed a competitive assessment of Shawcor and its competitors which revealed the following insights:

  • Shawcor was positioning itself as the leader in terms of integrity. From a branding perspective, integrity was viewed to be part of the company’s values in multiple ways:
    • Product quality as reflected in superior performance and durability
    • Company ethics through compliance and integrity
    • Focus on safety as in integrity of systems, safer products, and processes that preserve product and project integrity
  • Much of this focus was driven by technical innovation and was reflected in a premium-pricing approach
  • Shawcor's two largest competitors focused on the safety, strength and assurance of their products and services. Both competitors were immature digitally with no real acquisition strategy online. Innovation and technology seem to be key themes within the strategy of both companies, and both competitors were more diversified than Shawcor regarding industry and product use.
  • Shawcor grew by adding product lines and acquiring smaller companies. As competitors grew their offerings, there was a need to re-evaluate the branding approach used by Shawcor.

Data-Driven Approach to Brand Re-Calibration 

To ascertain Shawcor's branding from a customer perspective, we conducted a survey of its customers to address three specific issues:

  • Ascertain the relative importance of key strategic areas as determinants of customer-based brand equity
  • Identify specific execution levers for the most important strategic areas
  • Supplement its key-account management strategy, describe how people at different levels in client organizations perceive the value proposition

We used a multi-stage approach as outlined below. 

Stage 1

Measure Strategic Areas and Execution Attributes: We conducted interviews with customers, employees, and top management to identify key strategic areas and execution attributes associated with the area.

The interview insights helped formulate a customer survey developed in conjunction with the client and data-science advisory team. The survey used industry best practices to capture the voice of the customer². 

The voice-of-the-customer methodology ensures accurate measurement and benchmarking of the following key strategic areas:

  • Innovation/R&D 
  • Customer Solutions & Performance 
  • Teamwork & Partnership
  • Communication
  • Safety/Reliability
  • Project Management

Stage 2

Multivariate Statistical Modeling: We collaborated with our data-science advisory team that used a multivariate statistical approach answer three specific questions of interest to Shawcor.

Answering strategic brand questions: The data-driven results answered a series of strategic questions.

Question 1: What is the relative weight of different strategic areas in describing customer-based brand equity?

Answer: As shown in Figure 1, the quantitative analysis revealed new insights that were not apparent to Shawcor's executives. Within the total value proposition, 64% of the value was driven by Customer Solutions & Performance (28%), Teamwork & Partnership (20%), and Project Management (16%).

Relative Weight of Strategic Areas  Percentages

Question 2: What execution levers can improve performance in the most important strategic areas?

Answer: As shown in Figure 2, within each strategic area, the multivariate analysis identified execution levers that were the focus of different functional areas. The execution levers represent specific activities that would be the most influential in improving performance for each strategic area.

These levers provided the implementation blueprint for Shawcor's management team.

Execution Levers for Strategic Brand Areas

Question 3: How is the brand value perceived by people at different levels in client organizations?

Answer: As shown in Figure 3, the results show that the value drivers are different for top, middle, and frontline management. Specifically:

  • “Teamwork & Partnership” along with “Project Management” drive brand value for those at the Director/VP/SVP/CEO level
  • “Customer Service / Performance” drives value for those at the Manager/Supervisor level
  • Those at the analyst level see the most value in “Communication” and “Safety/Reliability”

Within the same client organization, Shawcor could emphasize different value drivers when interacting with different people.

Shawcor Brand Value

These were important insights for helping Shawcor develop its branding strategy to reinforce these value drivers.

Next Steps 

The results were presented to Shawcor's top executives, who collaborated with us to execute its rebranding approach. Next, the results were shared with sales organization at the annual sales conference. Shawcor's sales personnel found our guidance very useful when interacting with customers.

Moving forward, the firm is planning to integrate the customer-study into its annual strategic planning process for actionable insights.

Discover how we implement a data-science method to examine every aspect of our clients by contacting our President and CEO, Bo Bothe at bbothe@brandextract.com.

 

Resource Citations

[1] Madden, Thomas J., Frank Fehle, and Susan Fournier. "Brands matter: An empirical demonstration of the creation of shareholder value through branding." Journal of the Academy of Marketing Science 34, no. 2 (2006): 224-235.

[2] Mittal, Vikas, The Voice of the Customer: A User's Guide to Customer Surveys (February 1, 2017). Available at SSRN: https://ssrn.com/abstract=2909989