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NEW BRAND THINKING! June 2004. Key Brand Constituencies. Synchronous Branding. Brand Advantage. 1. Brand Evangelists. 1. Brand Evangelists. A clear brand strategy promotes convergent thinking by uniting stakeholders behind a common vision .
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NEW BRAND THINKING! June 2004
1. Brand Evangelists • A clear brand strategy promotes convergent thinking by uniting stakeholders behind a common vision. • A large portion of people who work for an organisation are often not directly employed by it, and if they aren't aligned to the brand's vision and values, the brand promise will be eroded. • Companies are making increased efforts to involve employees in managing the company's image. For emerging markets where a service culture is rare, this is even more vital.
1.Brand Evangelists Case Study: Starbucks • Starbucks is without a doubt, one of the most successful retail stores in America, and one of the most prominent brands in the world. • Starbucks achieved its success not only by providing brilliant coffee; it also won the hearts and minds of the consumers through a brilliant service strategy. • This Strategy aims at instilling all of Starbucks’ brand values into their employees, indeed making the staff of Starbucks – live the brand. • The healthy staff attitude created pleasant contact experiences for the customer, and in turn they spread their good experience at Starbucks with others. • At Starbucks, employees are not called workers or staff, they are referred to as partners, since they are seen as important contributors in the success of the business and therefore are stakeholders to be considered. • Starbucks offers many services to the employees, which range from training and education to personalized benefits packages. • Alignment is created within Starbucks and projected externally to the market, creating a service that is just as differentiated and special as the brand itself • Starbucks is one of the best companies in the world to work for, as rated by Fortune Magazine.
1.Brand Evangelists Case Study: Kulula.com • Kulula.com is a South African based airline company, and has proven to be one of Comair’s greatest success stories. • Kulula is a Zulu word, translated to mean “easy” - this captures the essence of the brand. • Unlike other airlines Kulula focused on being less formal and providing a fun and friendly experience for their passengers. • The overall idea of Kulula was transferred to its employees; firstly by giving them uniforms that are designed for greater comfort and functionality, this reflected more open and casual brand values. Secondly the staff was trained to provide more than just service that was not just good, but also appropriate to the brand, and when suitable – customers are addressed by their first names and staff were encouraged to make the most of their personalities and sense of humour. • Although safety and professionalism are always tops – the in-flight antics of the staff prove to be an amazing source of word-of-mouth references. • Kulula.com have received prestigious awards, thanks to the innovation of the staff, who are completely aligned to the brand.
2.The Rise of Regionalism and Anti-globalisation • Globalisation is fast moving out of fashion and patriotism is growing. • Emerging markets are no longer soft targets. Some really strong local brands are rising to challenge the giants. • The clever global brands will marry global best practice with local relevance, with special focus on Eastern Cultures. • They'll redesign global images and messages for specific local markets. It may be too late for Nike and Coke in Asia where local brands, Li Ning and Mecca Cola are grabbing the high ground….fast. • Mecca Cola although not a world-wide leader – yet. Mecca Cola’s popularity grows day by day, and can now be found in larger retailers. • Li Ning is Nike’s number 10 competitor worldwide, and is moving closer to poll as China grows economically.
2.The Rise of Regionalism and Anti-globalisation • Case Study: Mecca Cola • Mecca Cola was developed by French entrepreneur Tawfik Mathlouthi, who directly attacks the idea of drinking famous American brand – Coke, with the slogan “No more drinking stupid, drink with commitment.” • Unfortunately for Coke, this has been a huge success. • The success of Mecca Cola is proven by looking at the growth of distribution, launched in November 2001, it was initially sold in Muslim districts of France, it then was sold throughout France and eventually spread throughout countries in Europe such as Belgium, Germany, Italy, Spain and many more! • Although criticized for riding the anti-American sentiment, it proves that no matter how ‘Goliath’ the brand – if its values don’t correspond with the people, it will most probably be beaten by local ‘Davids’.
2.The Rise of Regionalism and Anti-globalisation • Case Study: Li Ning • Li Ning is a China-based sports goods company, created by the famous Chinese Olympic gold medalist of the same name. • Li Ning is leader in the Chinese market with a brand loyalty of 53.4%, while Nike and Adidas follow with 39.8% and 39.1% respectively. • The reason for the brands success is not only because of quality or price, the reason is that – Li Ning means something more than just sports apparel, its background is distinctly Chinese and this creates resonance within the consumers life. Li Ning is perceived by Chinese consumers as a down-to-earth, value-for-money brand, with the likes of Nike and Adidas being regarded as premium designer labels. • Analysis shows that well over 50% of Nike’s non-loyal consumers switch to local brands while less than that switch to other foreign brands. • Nike sees Li Ning as it’s number 10 competitor worldwide and is moving up the polls FAST.
3. Forget the X&Y Generation • Marketing is obsessed with youth. • The advertising and communications industry is growing old trying to stay young. Yet experience matters. • The size of the older generation is growing while the younger generation is shrinking. • The wrinklies have the spending power, and this dramatically affects to whom and how we plan both our marketing strategies and our products.
3. Forget the X&Y Generation Case Study: Japan’s NTT Docomo’s Raku-Raku cellular phone • The Raku Raku phone includes; enlarged text display, voice output of various content, and three large buttons on the outside of the closed phone and each enable one touch calling to an assigned number without even opening the phone nor dialing the number. • Initially Docomo’s designer did not intend for the Raku-Raku phone to be so popular among the elderly market. • Designed to be an easy phone to use for beginners or disabled people, it’s main consumer is the elderly age group. • NTT Docomo ensures that more elderly people use Raku-Raku model phones, then any other cellular phone.
3. Forget the X&Y Generation • Case Study: Virgin Megastores. • Virgin began to recognise the importance of appealing to older music lovers, by analyzing the ticket sales of concerts such as the Eagles, which are the one of the biggest-grossing acts at $100-plus ticket prices. • The contrast between younger age groups, who download most of their music for a low-cost or for free. • Virgin constructed sections that appeal to older consumers, such as: a jazz section, which was reconstructed to look like a 1930’s jazz club; a “mind, body and spirit” section, which is focused at relaxation and spiritual growth as well as physical well-being. • Although Virgin did not only plan to sell the mature customer only old music, instead the already existing information kiosks also served a purpose of recommending new artists to older people who are similar to their favourite musicians. • The company declined to release sales figures, but Dave Alder, senior vice president of product and marketing for Virgin Entertainment Group, said that the experimental store is outperforming the company’s other 21 U.S. locations. Several sites are set to get the same makeover.
4.Brands as Assets • A massive portion of the market capitalisation of top companies is comprised of intangibles - primarily brands. • Research shows that over 15 years, heavily brand-dependent companies consistently outperformed the FTSE 350 by between 15 and 29%. • Research also shows that marketing activity can add up to 25% to a company's share price. • Performance-based remuneration for brand managers must follow.
5. Brand Extension • Versace hotels. The Ferrari Laptop. Caterpillar watches. What next? • Brands face competition from the most unexpected quarters. And if their brand is identified with a single product, they're at the greatest risk. Chances are they'll go out of fashion or someone will replicate or improve on their product. • Competition no longer has boundaries. It comes from any organisation that wants to leverage its brand profile and reputation.
5. Brand Extension • Case Study: Tobacco Industries • In many countries, tobacco advertising has been banned, putting a hold on all marketing communications and therefore creating a huge threat for all tobacco companies. • Another threat of the control measures is the raising of prices, which lead to a decrease in consumer spending. • However cigarette companies began to diversify there brand offerings in order to survive. • An example of this occurred in Malaysia, tobacco companies took advantage of the indirect advertising loophole and promoted their new services, that in turn promoted the sale of cigarettes – Marlboro, Peter Stuyvesant Travel, Benson&Hedges Bistro and Dunhill Accessories. • Research shows that four of the top ten advertisers in Malaysia are in fact tobacco companies. • In countries such as America were tobacco advertising is not banned, the brand-stretching into clothing for both adults and children, boosts not only current consumer loyalty but also increases the instances of new consumers. Research proves that children who wear clothing with cigarette brands on them are 4 times more likely to smoke than other children.
6.Dream Merchants: “Enterprise survivors in chaotic times will create a cause, not a business.” (Gary Hamel)
6.Dream Merchants • Great brands transcend product format. • It's not about what the product is, but more about the beliefs the brand expresses. True brands connect with the consumer. • They're in the relationship business. • Think Absolut vodka. The success isn't about taste. It's about personality, identity and association.
6.Dream Merchants Case Study: VW Bug • The original Beetle is proven to be the best selling car of all time, with a worldwide production of 22 million. • When launching the new Bug, which was a completely new car in terms of engineering, the only similarity between the Bug and the Beetle is the traditional shape which is still evident. • Ogilvy&Mather used nostalgic appeals to win the hearts and minds of the audience. • The Bug is more than a car, it is the rebirth of a legend. • Once the icon of freedom and flower power, the new bug is: “the icon of the new millennium” as stated by Car Magazine. • The Bug’s awards are numerous, and success is profound – but what was the selling point? The Car itself or The Dream which brought back happy memories to many and inspired a new generation.
6.Dream Merchants Case Study: Vespa • Vespa is a word –rather, a concept – which is absolutely international, and which represents the dreams and the desires for freedom of entire generations. • The Vespa after 50 years is still world-renowned for it’s continual style, elegance and revolution. • “Dolce Vita” – Life is Sweet, the Italian phrase has become synonymous with the brand. • Vespa is more than just a scooter; it is a way of being, of thinking and of expressing the joy of living. • The very name Vespa evokes memories of youth; transports the mind to thoughts of free time, beautiful weather, the pleasure of driving in the open air with the sun and wind on the skin - as shown by Gregory Peck and Audrey Hepburn, riding a Vespa around the Colosseum in the 1952 film Roman Holiday, or the sensual Anita Ekberg escaping the paparazzi in the famous shot from Fellini's masterpiece, La Dolce Vita. • It isextraordinary that the Vespa, having been involved in so much fashion, never passed out of fashion. At first it was green and not wondrously beautiful, a symbol of transformation from war to peace. Then it became white and elegant, a product that imposed the ‘stile italiano’: from necessity to style, the recipe for the good life. Then it dressed itself in silver and was transformed into a myth of elegance, youth and adventure. • Truly an Esperanto among objects, the Vespa, initially presented as solid (it is still made of metal), long-lasting and adventurous, appealed to pioneers during the '40s and '50s. In the 60's it reflected the Italy of change, of pleasure-seeking children, and was transformed into a toy with real performance, expressing novelty, modernity and anti-conformism. In the '70s and '80s it turned into an object of nostalgia; and in this decade, with technological innovations and the 1996 launch of the sleek new Vespa ET2 and ET4, it has become revolutionary, riding with all its appeal intact into the third millennium. For very many people, the Vespa is the perfect combination of style, design and elegant functionality. The Vespa is timeless: it transcends the capriciousness of fashion.
7.Brand Karma "The next big thing in brands is social responsibility. It will be clever to say there is nothing different about our product or price, but we behave well." Wally Olins
7.Brand Karma • It will also be clever to demonstrate just how well your brand behaves. It must go beyond words. Consumers aren't fooled by greenwashing. • Increasing acceptance of triple bottom-line reporting and the move by many companies to align themselves to philanthropic causes will produce more truly ethical brands. • Brands of the future will stand for product quality and desirable image and will have to signal something wholesome about the company behind the brand. • Cause branding champions such as: The Body Shop, Aveda and Ben&Jerry’s, have only gained from their social involvements.
7.Brand Karma Case Study: BP • With the launch of the new BP brand, along with it’s new slogan “Beyond Petroleum,” it became important to create a new image – constructed around environmental concern. • Social involvements include: constructing wetlands which treat the effluent from the Bulwer Island refinery – this approach not only treats the pollution created from production- but also creates a wildlife habitat. • It was important to integrate BP’s social responsibility into the new brand – the image is meant to show the difference BP makes, and in turn differentiates the brand by positioning it favourably in the mind of the market.
7.Brand Karma Case Study: Ben&Jerry’s • From humble beginnings in Vermont, to a retail superstore of innovative ice-cream flavours, Ben&Jerry’s has grown tremendously since it’s inception. • Although the company was recently bought by Unilever for an astounding $326 Million, it achieved the success by being both innovative and caring. • Ben&Jerry’s social responsibility programme was more than just giving donations, it was integrated into their everyday business processes. • Ben&Jerry’s always made sure that the raw materials bought to produce their fantastic ice-cream, was never at the cost of the local producers – who are generally from third-world countries, and in most cases, completely exploited by large corporations. • They also cared about their employees - at one time Ben&Jerry’s hired homeless people to come and work in their stores,giving hope to people who had none before. • The customer is also served by Ben&Jerry’s sense of humanity, as they boycott any milk or cream treated with synthetic hormones, such as rBGH. • Other than that, they also care for the environment – by ensuring that their wastewater doesn’t pollute the water and kill wildlife. • From the fact that Ben&Jerry’s have always done business with such social mindedness, and have a value of $326 Million today, proves that it does indeed pay to be good.
8.Brand Rejuvenation: • Brands that have prospered have retained their core values, but have reinterpreted themselves to remain relevant. • Style lifecycles are becoming shorter. Think Madonna - the queen of brand rejuvenation. Think Burberry.
8.Brand Rejuvenation “To improve is to change; to be perfect is to change often.” Winston Churchill
8.Brand Rejuvenation 8.Brand Rejuvenation Case Study: Burberry • This London-based brand began in 1856, and has moved from being a functional form of clothing to a luxurious fashion brand. • Almost 200 years old the trademark red,camel,,black and white checkered patterns are still well received by hippest pop icons of today. • From Ernst Shackleton who wore Burberry to protect him from the Antarctic freeze, to Prince William, Kate Moss and Ja Rule. • This evolution proves that a brand must adapt to suit the times and even the oldest of brands can remain fresh and new.
9.Straight Talk. • Don’t widen the gap – close it! • Deal with complexity through simplicity. • Declare war on complicated systems, procedures, products, services and design. Confusion is alienating. • Demystify your offering and your communication.
9.Straight Talk. Case Study: Nando’s • Nando’s has flourished in it’s home market, South Africa, and continues to grow internationally in neighbouring African countries and further abroad in Europe and Asia. • The simplicity of communication has always been a major competitive advantage for Nando’s. • The simplicity in it’s mass communication, has always carried across the values of hospitality, fun and the warmth of a traditional Portuguese experience. • Apart from it’s mass communications, Nando’s also keeps it simple with regard to communication of it’s offerings – simulating McDonald’s in this respect. • The simple truth of the brand is defined and unambiguous, making the Nando’s brand ring true to the public.
9.Straight Talk. Case Study: Nokia • Nokia is the number one cell phone brand world-wide, and this position was gained mainly through their unique brand identity. • Nokia spoke to the world in human terms and not in technological jargon. • People understood Nokia products because they could ‘connect’ with the brand better than any of it’s competitors. • Nokia also avoided the mistake of diluting it’s brand with hundreds of sub-brands, giving individual products a generic brand personality, only numeric descriptors are used – which don’t actually appear on the products themselves. • The clear and concise phrase of “human technology,” leaves the rest of Nokia’s competitors talking gibberish.
10.Has advertising as we know it had its day? "I wish more and more time was spent on designing an exceptional product, instead of trying to psychologically manipulate perceptions through expensive advertising." (Phil Kotler)
10.Has advertising as we know it had its day? • Designers will become the brand custodians of the future. What good is a great advertising campaign if the product image is weak? Good design is everything. • Advertising agencies have seen their share of marketing spend slashed to around 50%. • Strategic companies are being recognised. The trend is to be more tactical, more strategic and taking long-term responsibility for the brand.
10.Has advertising as we know it had its day? • Case Study: CellC • In the South African market, competition was stiff between the two only cellphone providers, mainly MTN and Vodacom. • When CellC entered this highly competitive arena, it was foreseen as having little or no chance of survival. • While it could not compete on the level of it’s two competitors with regard to mass media, it had to find other ways of communicating the service offered in order to create hype strong enough for market penetration to be successful. • CellC used one of the most innovative below the line campaigns ever seen in the South African cellular industry. • Their ‘Paint the Town Red’ campaign penetrated the lives of the consumer, by going to grassroots level, they communicated to the consumer in ways completely unique to MTN and Vodacom. • By linking their communication to social responsibility, they achieved differentiation by being more human and caring. • Today CellC is seen as the more unique and innovative cellphone provider in the South African market competing equally against its once formidable foes.
11.Ethnic craft and culture: The technology revolution has moved from hi-tech to high-touch.
11.Ethnic craft and culture • The human element is back. Africa is fashionable. • There's a groundswell of appreciation for the value of African art and craft. • Think Ardmore pottery. LOSA is a remarkable transfer of first and third worlds. We'll be seeing more of this fusion. Lucky Sibiya LOSA Egg shell Candle Holders
12.Women Rule: "Tomorrow belongs to women." Tom Peters
12.Women Rule • Women own the present and the future. They make the majority of purchasing decisions from homes to holidays, cars to consumer electronics. • Branding needs to reflect this. Why the masculine DIY stores? Why are female products designed by men? • Successful brands will be sensitive, intuitive, empowered and understanding. • Bridgestone is just one of the traditional male brands that have recognised the importance of women.
12.Women Rule Case Study: Charles Schwab • Research proves that women actually out perform men at investing, as they are more focused than men. • Other analysis shows that all female investing clubs are the most common kind of club, and outperform both co-ed and all male clubs. • Charles Schwab, has definitely taken advantage of this overlooked market, by creating “Women Investing Now,” which provides women with a suite of tools and resources connecting women to the investing world. • The main aim of this project was to instill confidence within potential women investors, since most of them lack the belief that they are capable of investing. • 3 months after it’s inception, “Women Investing Now”, attracted over 5000 women to it’s first educational seminar.
12.Women Rule Case Study: Tomboy Tools • The last place you would expect to find products for women, is the tool market. • Tomboy Tools created tools that are ergonomically designed for women by women, and use the definition of a tomboy as “a girl who determines her own destiny” • Although this may have been viewed as an absurd venture – Tomboy Tools today has grown throughout the U.S. and now crossing the border in Canada, this was essentially promoted through their “Tool Parties,” were women meet and get trained in using the product, which has translated into increased sales. • This confirms that women don’t buy brands – They join them!
13.Brand Traditions • Known fact: People appreciate tradition. • Tradition has a strong enduring impact on people, by being heartwarming thus stirring emotion. • Simple current brand practices can evolve into powerful traditions that integrate into popular culture, and resonate within the consumers lifestyle. • Perfect in today's modern consumer culture, demographics – more singles who are away from home. • Sears created a new tradition out of an ordinary period – ‘The Autumn of Love’, which boosted sales compared with the same period in previous years.
14.Sensory Branding: “Where sense is wanting, everything is wanting.” Benjamin Franklin
14.Sensory Branding • Brands have moved from just appealing to 1 or 2 senses, to appealing to all 5 - or even 6. • With each sense activated, memorability of your brand increases exponentially. • Sense has in fact become so important that new trademark legislation, actually places copyrights on less traditional sensorial appeals – smell, taste, touch.
14.Sensory Branding Case Study: WOW! Jeans • Wow, transcended typical jean sense appeals. They produce jeans impregnated with arginine, an amino acid said to keep the skin youthful. Fatty acids in the fabric used to make the jeans, developed by Teijin Wow, also moisturize the skin, smell nice (who needs perfume anyways?) and fight bacteria. • These jeans promote collagen production and fight the free radicals, which actually slows the aging process. • The smell and feel of the jeans are completely different to anything on the market, these unique appeals quickly accelerate the jeans to a completely new level of awareness in the consumer’s mind. • “The reaction from customers has been very good. Most of them say the jeans fit very well and they like the soft touch of them, particularly even after washing them." said Takashi Taketomi, a manager at Teijin Wow, which developed the Amino jeans. • The jeans were initially launched in Japan where they were sold out within 24 hours, now the jeans have spread like wild fire through the East and have also began to move into European markets.
