Why Align Your Brand to A Worthy Cause?

The benefits to worthy causes or charities of partnering with big brands are obvious. Charities, such as Oxfam, use partnerships with commercial brands as a media platform and an opportunity to get its message out to the public.

 

 M S Oxfam

 

Partnering with Marks & Spencer allows Oxfam to tap into the huge influence the M&S brand has over consumers. Being able to promote their message among that captured audience via this kind of partnership is immensely beneficial to the charity and their work.

 

However partnerships of this nature can be mutually beneficial to both the charity and brand alike. It bequeaths the commercial brand with a deeper meaning and offers another opportunity for engagement with their customers on a different emotional level.

 Building Partnership

  

It can also become a significant part of the brands social contribution policy. Without wishing to sound cynical, tying up with a worthy cause or charity can be a winning formula for brands sensitive to the current climate and worth serious consideration as part of your brand strategy.

 

 

4 Top Reasons Why Brands Should Engage in Cause Related Marketing

 

Whether sponsoring charitable activities or committing to donate profits to a worthy cause, the benefits to brands in aligning themselves with good causes are significant

 

1. Build Brand Awareness

Building partnerships with charities can make a sustainable difference to the cause but it also enables the brand to raise awareness with a wider target audience. Sponsoring a charitable activity often coincides with providing the brand with significant visibility of their logo and products with an engaged and receptive audience. It also provides a platform for brands that are looking to reposition themselves in the market, and change customer perceptions, with a great opportunity by aligning themselves with the right charity associated with the desired target market.

 

Charitable partnerships can make the brand more accessible to a wider audience particularly if the brand engages in an experiential marketing campaign. It also enhances a company’s credibility and provides an opportunity to educate the public about their products and services. Product sampling is also a great opportunity to attract new customer attention and commonly used by brands sponsoring charitable sporting activities.

 

 

2. Corporate Social Responsibility

Engaging in a strategy of corporate social responsibility through charitable partnerships displays a brand’s desire to make a positive contribution to social issues in the community.

 

It can also have a positive effect on the internal culture of the organisation. Charity partnerships provide the potential to boost employee engagement, and subsequently improve morale, as well as raising awareness among staff.

 

 Corporate Social Responsibility

 

HSBC has ties with environmental charity Earthwatch and sends employees to visit projects. ‘It is good for motivation and makes employees more likely to stay with the company and become effective brand ambassadors,’ says Nigel Pate, head of environmental partnerships at HSBC.

 

It can give a sense of purpose and involvement to employees. It highlights the importance of nurturing the strategy to support not just the corporate image but the wider stakeholders too. There is a sense of corporate pride amongst employees at being associated with a project that makes a positive impact in their world.

 

 

3. Differentiate the Brand from Competitors

Aligning your brand with a positive cause engenders a more caring image with customers. In markets where the variances between individual brand offerings becomes blurred, associating your brand with a significant social issue or charitable cause can give your customers a new reason to pick your brand over competitors in the market.

 

It is a way to communicate something about the brand that is beyond price, product or service. Brands who partner with charities or champion significant social issues often benefit from a boost in sales because, given the choice, customers are more likely to buy a brand that supports a worthy cause over a competitor who does not.

 O Egg White Eggs Icograda

 

O’Egg is a great example of an Irish brand with modest resources which has aligned itself with ‘Action Breast Cancer’. They operate in a market with weak brand differentiation and yet the O’Egg White Egg product in its bright pink packaging is very much targeted at a female audience. The cause has a very obvious relevance to its target market which has helped raise brand awareness and benefited the cause too.

 

 

4. Boost Brand Equity

Championing a social issue or engaging with charities is a worthy way to boost brand equity and invest in a little feel-good-factor. Aligning marketing activity with cause related issues enables brands to build a reputation with their target market and build an emotional connection can help strengthen brand loyalty.

 

Linking brand support to significant social issues or charities creates an emotive response alongside goodwill. Customers feel they are extending the value of their purchase to include a worthy cause investment and are more likely to be repeat purchasers. 

 

Flora Womens Marathon Dublin

  

Flora’s support of the woman’s mini marathon shows their customers that as a brand, they care about what their customers care about. They recognize their customers concerns and actively try to support them. Brand loyalty is strengthened and brand equity is boosted when the customer’s affinity with the brand extends beyond the product itself. 

 Red Products 

 

(RED) is an example of a long established initiative encompassing the support of some of the worlds biggest brands who have each committed to supporting charitable initiatives in Africa. Each brands dedicates a (RED) product in their product line to the cause.

 

 Red Brands

 

 

How to Beat the Cynics

For cause related marketing to work your customer must feel differently about your company and brands as a result of the association. The partnership must be relevant to the target customers in order to be trusted. The Nissan Leaf brand alignment to the issues of global warning, and its threat to the environment, is a great example of brand cause marketing, all of which is very relevant to their eco sensitive core target audience.

 

 

 

For the most part customers know that sponsorship of charitable causes or championing a significant social issue is not a form of corporate altruism but a strategic business move. Consequently brands need to be upfront and transparent as to the corporate motives behind the association. 

 

Partnerships must prove its credibility with customers before making any kind of direct product links. For this to be successful the commitment to the aim of the cause must be sincere. Long-term commitment is needed to create a degree of trust, and show that the partnership is more than just an add-on to other marketing activity.

 

Arts and charities sponsorships are cheaper than sports sponsorships and can generate profit and brand equity while boosting corporate social responsibility credentials and employee engagement.

 

In an uncertain economic climate where consumer trust in major consumer brands has been damaged, partnering with a worthwhile cause could be the best investment you make in your brand strategy in the year ahead.

 

What local, national or global cause could you authentically align your brand with, that would be congruent with your core brand values, relevant to your target audience and genuinely make a difference – show that you really care?

 

Brand Commoditization : How Safe is Your Brand?

A question to ponder this week… What would your customer’s identify as the number one reason for buying your brand?

 

If the answer is ‘low price’ or ‘convenience’ your brand could be at major risk of becoming just another commodity brand; a very risky position for any brand to be in.

 

When it comes to commoditization, no industry is safe.  Whether you produce consumer products or supply professional services, when your customers can no longer differentiate your offering from that of your competitors it puts the company’s success and profitability in jeopardy.

 

Commoditization is a never ending reality in business today. No matter how hard a successful brand works to be different, their competitors are working equally hard to replicate it.

 

Markets are awash with ‘me too’ products. Customer choice has never been greater online and offline. Brands need to be very proactive in reinforcing their differentiating factors to their customers i.e. the reasons why their customers should choose them. But without a truly unique product or service that process is becoming more and more difficult.

 

 

Is Your Brand At Risk?

How easily can you quantify the differences between your products and services from those of your competitors? Think then about how easily your customers and prospective clients can make the same distinction? What’s your big why for your brand? What does it stand for?

 

When the tangible differences between competing brands diminish, the danger of commoditization grows. But all is not lost. Many brands enjoy a sustainable longevity in their market, despite aggressive copycatting, and do so by identifying the broader value offered by their brands.

 

Articulating the extended intangible values of your brand creates a tougher opposition for competitors. Replicating a product is easy, replicating a brand identity is not.

 

 

5 Ways To Safeguard Your Brand Against Commoditization

 

1. Brand Values

The first step for any company in safeguarding against commoditization is to use internal knowledge to identify the company’s broader value. Take time to consider the intangible benefits of your brand, the perceived benefits to customers, and the desired emotive response when someone experiences the brand. Think back to the very beginning and refocus on the brand identity. What were the core values that established the brand?   

 

 Steve Jobs Apple

 

Apple’s strength lies not just in innovation but on a dedication to producing a high quality product. Their product prices are amongst the highest on the market but their willingness to lose a portion of market on price reaffirms their dedication to their core value of quality and establishes their brand identity in the mind of the consumer.

 Customer Experience

  

2. Relationships

Tangible elements are easy to replicate. Strong brands succeed in developing strong relationships with their customers. Leverage face-to-face interactions and social media to learn more about your customer and start a dialogue that fosters a meaningful relationship that extends beyond the brand experience. 

 

3. Leverage the Corporate Brand

The corporate brand often has sustainable equity. Leveraging the corporate reputation and trust can deliver broader value to product brands and help shape a comprehensive offering to customers that extends beyond the product service attributes.

 

 O Egg White Eggs Icograda

 

4. Package Design

Innovative packaging that creates an aesthetic beyond function can help increase perceived value to the customer and enhance market share. The O’Egg brand focused on package differentiation to turn a commodity product into the pre-eminent egg brand in Ireland. 

 

5. Brand Experience

When a product or service is easily replicated, innovating brand intangibles can strengthen the position of the brand and protect it from the threat of commoditization.

 

 Apple Customers Queue Ny

 

Think differently about your business. Change how its’ perceived. A unique service area, outstanding customer support, or special loyalty rewards can set your brand apart.

 

Starbucks’ strength grew from creating a brand experience around a commodity product. What set the brand apart were the various elements that nurtured the customer’s experience of the brand; from the service setting, to the coffee ordering system, to the interactions with staff. They changed the way the world ordered coffee.

 Starbucks Commoditization

  

Global giant that it is, Starbucks is now under threat because the brand experience has become the commodity and the Starbucks focus has drifted to profit margins and market growth rather than extending customer value. The brand is currently in the process of returning their focus to their core value, putting the customer’s coffee experience at the heart of their operations again.

 

 

One of the biggest problems that lead to a weakening of brand equity is a lack of awareness in the company of the causes of commoditization. 

 

Businesses end up spending valuable resources on updating products and expanding product lines without having a real understanding as to what their customer’s really need and value.

 

 Customer Service

 

• When was the last time you surveyed your customers or researched your market properly?

 

• Do you really know what’s happening at grass roots level in your market?

  

• Do you need a brand audit?

  

In short, how safe is your brand?

When Is The Right Time for a Logo Redesign?

2012 could be seen as The Year of Logo Redesign with some of the world’s largest brands taking a fresh approach to their corporate logos. From simplified updates of existing logos to completely new designs, the last few months has seen brand design success and fails from well-known global brands.

 

The evolution of brand logos is far from a new phenomenon and brands such as Coca Cola can track the transformation of their current logo over nearly 100 years. Latest trends in brand logo strategies however show that logo updates signify far more than an evolution in design-over-time.

 

 Coca Cola Logo Evolution

 

 

4 Reasons Why Your Brand Logo May Need A Redesign or Update?

 

Logos are the corporate face of the brand. The logo in itself is not the brand but it acts as the visual hook reminding customers about what the company stands for, its brand personality and values. It is the glue that binds all the brand information together. With the brand’s visual corporate identity at stake a logo change is no small matter. But how do you know when a logo redesign is necessary?

 

1. Change in Company Structure

There are often obvious reasons behind logo redesigns. Mergers, acquisitions or company spin-offs often necessitate a new logo that symbolizes the new company.

 

2. Audience Misperceptions

Sometimes there may be misperceptions and confusion among key audiences about what the brand represents. Powerful brands are ones that have strong values, with an authentic story, which are clearly understood and lived both internally and externally amongst stakeholders and customers alike. If the brand values and story no longer resonates with the target audience or, customer brand experiences differ from the brand promise, then a logo redesign as part of a complete brand revitalization programme, repositioning and re-launch strategy can help realign the brand with the customer and their brand expectations.

 

 Ebay Logo Old New

 

3. Shift in Corporate Strategy

If your company is expanding its offering, such new products, new features etc. then an updated logo can signal the brands evolution and change in the marketplace. Ebay recently launched their refreshed logo to reflect the company’s plans to shift their corporate strategy away from auctions and move towards full-priced merchandise. The new logo keeps the colours of the original logo but changes the letters and streamlines the design to reflect the new direction of the brand.

 

 Band Aid Logo Old New

  

4. Update of old design

Brands that have been around a long time with a extensive legacy often require a careful evolutionary logo refresh to remain relevant in the market without losing any of the much valued old brand provenance. Johnson & Johnsons’ BAND-AID brand has been in existence since the 1920s and, prior to its latest update, the logo had remained the same since the 1980s. Their latest bolder, more distinctive logo was deemed necessary to create something that feels contemporary and modern yet honours the heritage of the brand.

 

 Budweiser Brand Evolution

 

Budweiser has again refreshed its logo. It is hoped the re-evaluation of their brand strategy together with its visual refreshment, which emphasizes the colour red and reflects their ‘continued commitment to quality’, will reverse reduced consumer interest in the brand. Critically the brand’s updated look incorporates the core brand hallmarks that loyal brand followers will recognize.

 

 Twitter Logo Old New

 

Earlier this year Twitter launched their revitalised logo. While still a relatively young brand, the company saw a need to simplify and streamline the iconic blue bird. The new logo is created from three overlapping circles, which according to Twitter head of design is “similar to how your networks, interests & ideas connect and intersect with peers and friends”. The new logo reinforces the brand identity with the customer and strengthens the consistency of the brand image online.

 

 

  

In contrast Microsoft launched their new logo design, which is the first time the brand has updated their logo in a quarter of a century. The new design was created to attract and embrace a younger broader demographic to the brand.

  

 

 

The Potential Risks

 

While logo updates are often necessary to remain relevant in the market it is critically important not to damage any brand equity developed over previous years. The last thing logo refreshment should do is to alienate or confuse loyal customers.

 

 Jc Penny Logo Confusion

 

American retail brand JCPenney has redesigned their logo three times in as many years. The changes were designed to coincide with the brand’s repositioning strategy but have left many customers confused as to what the brand stands for and its identity.

 

 New Old Gap Logo

  

Retail giant Gap suffered one of the biggest logo redesign disasters in decades when they launched a completely new logo last year. The brand made a fatal flaw when they failed to research and explore the influence of the logo on their customer base. The new logo received major criticism from both loyal customers and design critics alike, who slated the company for changing the brand’s iconic blue square.

 

While the brand’s desire to modernize the logo for the digital world was understandable, they missed an critical opportunity to engage with their customers and the online community in the redesign of the logo.

 Maguire   Paterson Old New Logo 2008

  

Brands need to constantly manage their engagement, reputation and image in the market in order to remain relevant with their customers. Sometimes it is small updates to the logo, as was the case with the old Maguire & Paterson Matches brand, dating from 1882, that can breathe new life into a brand and update it for the current market to keep it relevant and take it into the future.

 

• Is your brand still relevant and resonating effectively with your target audience or in need of revitalization for continued growth?

 

• Does your current logo meet the needs of both your brand and your target market?

 

• Have you undertaken recent research to identify your customer’s perceptions of your brand?

 

If you’d like to find out more about what’s involved in a Brand Revitalisation and Re-launch Programme, and if it’s the right strategy to support your business growth, then feel free to give us a call. We’d love to talk.

 

Risky Business: How to Safe Guard Your Brand

Over 80% of the Fortune 500 Company CEO’s identified ‘their brand’ as their company’s number one asset. Their brand was valued as being what defined their business and what made them unique in their market.

 

Your brand is what sets you apart from your competition. It is the differentiating factor used by your consumer’s in their decision making process.

 

In our home lives we tend to take great care of our valuable assets. We try to preempt things that can go wrong and insure against them. Not only is your car insured against any potential accidents, you also wear your seat belt, maintain the speed limits, drive with care. You try to identify and reduce potential risks before they occur. If your brand is the greatest asset to your business then what measures have you put in place to protect it from potential risks?

 

 

Brand Risks

Brands face exposure to a huge amount of risk (product or service), many of which will be specific to each individual brand, not to mention industry categories or specific sectors, be they B2B or B2C. In addition to the obvious risks faced from product liability lawsuits or adverse regulatory decisions, other risks your brand could face include:

 

Costa Concordia Runs Aground 600px

 

Structural Risk

These are risks where exposure might affect an entire industry or market segment. The sinking of the luxury cruise liner Costa Concordia may have destroyed the reputation of its parent brand Carnival Corporation but it also damaged the entire industry with numerous cruise liner brands suffering the effects

 

Brand Equity Risk

Brand Equity risks undermine your brand’s ability to maintain desired differentiation and competitive advantage. If your brand identity is the only thing that differs your offering from that of your competitors then the loss of brand affinity by consumers will affect your entire business.

 

Reputational Risk

These risks arise from failure to meet basic expectations that apply to the market in which your company operates.

 

The famous case of Tylenol is a textbook example of how brand risk management can save the reputation of a company and lead to stronger brand loyalty. When faced with a case of product tampering that would de-rail most brands, Tylenol’s excellent foresight about risk enabled them to rapidly implement pre-planned re-packaging that preserved the company’s reputation.

  

 Tylenol 600px

  

Why Brand Risk Management is Important

 

A brand is so much more than a name. The value of a brand lies in the unique emotional and functional benefits it offers its target audience. Often the biggest brand risk is not about new competitors coming to the market, it is about loosing the trust and connection it has with its consumers.

 

Strong well-known brands that are poorly managed can lose their distinction in the market place. Their products or services simply become commodities distinguished only by price. The brand name might prevail but the value of the brand erodes; market share, profit margins, and loyalty all decline. In essence, the power of the brand is lost.

 

The risk of a damaged brand is far more dangerous and costly to a business than risks to tangible assets. A factory destroyed by fire can be replaced with financial investment. A brand with a damaged reputation takes far more investment to repair and in some cases is too damaged and needs complete rebranding. It also becomes a lasting case study in how “not-to-do-it” with is an irreparable legacy association.

 

Rebuilding a brand’s reputation takes much more than just money. Changes in stakeholder perceptions can threaten the sustainability of current and future demand for a company’s product or services.  A risk to brand equity is a risk to a brand’s ability to create value or influence in its market, in short its ability to generate a profitable return.

 

 

Are You Brand Risk Aware?

Managing brand risk is really about running the business effectively and understanding, at the core, the fundamental risks facing the business.

 

Safe guarding your brand from potential risks must begin by developing a clear understanding of the value of the brand to the business. By clearly illustrating the brand’s contribution to earnings, you can gain perspective and properly assess the scale and nature of the risks attached to the brand. 

 

When unanticipated change occurs brands can be hit hard because typical crisis management does not include appropriate brand risk management strategies too. If you have spent time and resources to shape and build strong brand equity then you need to protect your investment and manage your brand’s future. Your brand strategy should also include mitigating potential risks to your brand too. Be proactive, preempt, plan, and safe guard your company’s revenue stream.

 

• Identifying and evaluating the existing practices and procedures that are used to develop, support and track brand performance will help identify potential risks that may contribute to brand erosion. Have you undertaken a brand audit?

 

• Have you identified the risks faced by your brand?

 

• Do you know what your stakeholders expect from you?

 

• Have you a contingency plan in place to protect your brand?