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?

 

Is Your Price Right? Does It Strengthen Your Profitability or Undermine It?

For some companies, the pricing policy for goods and services is based purely on a combination of covering costs and making a reasonable profit. Smart management however, understands that pricing is one of the most obvious indicators of a brand’s competitive strategy.

 Brand Pricing

  

Pricing policies determine where your offering is positioned in the market. It is a reflection of your brand’s core values and helps shape customer quality expectations of your product or service. With this in mind, ask yourself, what is your pricing policy telling your market about your brand?

 

 

Top 3 Most Common Pricing Mistakes to Avoid

 

1. Lowest Price Does Not Always Mean Best Value

Most customers care about value for money rather than lowest price.  In tough economic times people still have to spend money and so their tendency to focus on the value of their ROI is even more pronounced. Customers are far more than one-dimensional money savers. They want brands that will serve their needs and offer value for money.

 

 Brand Price Matching

 

2. Cost Cutting

The current economic situation has come companies cost cutting and lowering prices in an effort to survive until things improve. Brands need to accept the current economy as the new normal. Look at it not as a bad economy but as the economy. Companies should implement a pricing structure that best reflects the core value of the brand, rather than clutching at the lower end of the market. 

 

 Slashing Prices

 

Companies need revenue more than ever. Cost cutting can position your brand as the low cost provider and that is a risky place to be in.  Brands that focus on being the low cost provider are left with little to offer the market if suddenly undercut by competitors.

  

3. Inconsistent Pricing Strategies

Frequently changing pricing strategies makes it difficult for customers to calculate the value received with each purchase. It can lead to consumer confusion and can trigger a lack of confidence or mistrust in what appears to be disorganized management. Identifying your most appropriate pricing strategy and keep it consistent.

 

 

Top 5 Strategies That Can Strengthen Your Brand Positioning

 

1. Emphasize Benefits

Lowest price doesn’t always win. Customers develop feelings through their brand experience that impacts on their judgment of value. Customers care about value. By remaining consistent in your pricing strategy and focusing on communicating the value proposition of your brand you will provide your customer with the confidence they need when making a purchase and help them feel more positive about the way they spend their money.

 

 Brand Value

 

2. Focus on Core Values

Core values are the foundations on which brand identity is shaped. Re-examining your brand’s core values can help refocus your pricing strategy and provide the guidelines to strengthen your relationship with your customers. If your brand’s core value was to provide greater quality at a fair price then moving to a low price strategy will damage the very nature of your brand. Customers tend to be more willing to spend a little more money for better value. 

 

3. Bundle Costs

Customers feel a loss when they spend money. Separately listing all the elements they are paying for highlights the extent of the loss in the transaction. Bundling the items into one price is easier to change the customer’s perspective, encourages purchasing and can provide a sense of increased value for money.

 

4. Stagger Price Increases

Webers Law is a strategy adopted by Starbucks in their pricing strategy. It states that customers do not register price increases until they become highly significant. By raising their prices by only a few cents at a time Starbucks did not deter their customers and managed to rise prices without consumer backlash.

  

5. Make Your Offering Incomparable

You don’t want to be forced to lower prices, but how do you deal with low price anchors set by your competition? The easiest way to make your offering incomparable to your competitors is by changing the way you present your offer. 

 

For example, if you are in the B2B software industry, rather than a generic  offering; “software solutions for business”, try “software solutions for business that maximize productivity”. That one small change can make sure that your solution is incomparable and will make it harder for customers to reference the low price anchor.

 

Do not compromise your brand integrity by slashing prices. Focus on your brand’s value proposition and articulate it clearly to your employees and customers alike. Make sure the pricing strategy you employ supports a sustainable and profitable future for your brand.

 

• Do you need to reposition your brand to increase your profitability?

 

• Are you undermining your brand with unsustainable discounting?

 

• Could re-evaluating your core brand values help you increase your profitability? 

  

  

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?

De-Branding to Differentiate; Is Your Brand Strong Enough?

Selfridges department store in London made waves recently with consumers and marketers alike with the launch of their “No Noise” branding project.

 

 

 

In an aim to address the increasingly cluttered world of 21st century marketing, Selfridges opened the Quite Shop in-store. Minimalist art and music, and a ban on mobiles and shoes set the scene for a tranquil consumer experience, but bucking the very core of consumerism, the store went beyond by launching brand-free retail.

 

 Selfridges Launches No Noise

 

Global brands such as Levi’s, Heinz, and Dr Dre Beats all produced products that were void of logo or product information for the project, leaving customers to experience the products without the usual assault of marketing design.

 

 Selfridges No Noise Project Quiet Store Products

 

Arguably a campaign for media publicity the project did highlight two important branding issues:

1.  How Strong Is Your Brand Without Its Logo? 

A truly strong brand transcends its logo, as was evident from the No Noise project. Not only were the brands instantly recognizable when void of logos but critically, consumers had developed such an affinity with the brand through the intangible intrinsic values that even the un-branded product still offered value.

 Levis Jeans Debranded

 

2.  With the Prevalence of Brand Clutter, Can De-Branding be a Valuable Differentiator in the Market? 

The de-branded products of the No Noise project also created exclusivity out of normal brands. Void of logos and product information suddenly made Heinz baked beans tins a desirable limited edition unique offering. In a world where branding information is bombarding the consumer, could the simple brand-free product be the one that makes the biggest impact?

 

 Starbucks Debranded

 

Starbucks might be one of the most recognizable brands in the world but it too has started to explore reducing its brand imagery in an effort to differentiate its business and extend its market catchment.

 

 Starbucks Cups

 

Starbucks global reach meant that the visibility of the brand worldwide was almost having a negative effect with consumers. Over saturation of the corporate logo was almost making it uncool with consumers, with a trend towards local coffee houses emerging.

 

 Starbucks Localised

 

Starbucks began removing their name from their cups, and even redesigned their newer stores to fit into the local environment. In the UK no two stores are the same and the brand is focusing on less corporate branding and offering a more personalized experience to their customer. In a high street with Costco chains blatantly visible, would the de-branded Starbucks coffee house offer a more welcoming personable experience to the consumer?

 

De-branding to gain attention was a strategy adopted by VO5 last year in an effort to target the teenage boy market. The brand’s strategy focused on building brand equity through a meaningful narrative in their advertising.  They wanted to be less pushy with their products and thought that un-branded advertising adds to their credibility with their target market.

 

  

An unbranded 30-second teaser on YouTube spearheaded its new integrated campaign ’Pageant’. The short trailer achieved 180,000 views in two weeks after its launch in October and was also voted one of the most popular videos on YouTube’s comedy channel. The trailer was followed by an online film and a TV spot as well as a YouTube channel and Facebook page.

 

The viral success of the campaign means that there might be credence to the claim that de-branding might just be the key to breaking through brand clutter and gaining the attention of the audience.

 

 Gucci Bag Debranded

 

Branding and logo saturation is something that is having an impact in the luxury brand industry, an industry that once thrived on the power of their logos. Recent years have seen brands like Gucci experimenting with logo-free products where they have achieved success targeting a more sophisticated customer.

 

The customer’s affinity with the product was defined by their interest in the quality of the product materials and design rather than perceived status attained from the visibility of the logo. 

 

With a logo-free product the brand has achieved enhanced positioning and exclusivity with their target consumer. By recapturing a more knowledgeable customer and developing an aspirational product, the brand was rewarded with a 25% increase in annual profit last year.

 

 Coutts Debranded

 

Eliminating the brand name from marketing activity is also evident in the professional services industry. While many brands strive to develop brand awareness in the market, sometimes negative brand connotations make it necessary to de-brand. Coutts private bank recently did just that, dropping the well known but unpopular RBS parent brand from their name in an effort to extend business. 

 

The common thread in the examples above it that, before the de-branding took place, each company had developed an offering that presented value to their customers that extended beyond that tangible product itself. The strength of customer’s brand loyalty enabled the brands to experiment with the de-branding process. For obvious reasons de-branding won’t work in every case.

 

Tesco explored removing their brand name from some products but research has shown that the products were more popular with the Tesco name included as the customer has a better understanding of perceived quality that the brand represented.

 

De-branding certainly is not for every company, but it does force you to think about what elements of your brand make the biggest impact with your customer. Could de-branding be part of your brand strategy?

 

• Does your brand offer value to your customers that extends beyond the tangibles of the product or service?

 

• Do your customers have a clear understanding of your brand and its story, what it stands for?

 

• If you de-branded your product, what are the remaining elements that would have the biggest impact with your customers?

 

 

The Secret Way to Boost Brand Loyalty and Increase Your Profitability

Here is a question for you: how many loyalty cards do you carry with you in your wallet? If you are like us your wallet will claim loyalty to supermarkets, pharmacies, service stations, the local coffee chain…to name a few. The list of businesses offering loyalty schemes to customers seems to grow year on year, with brands working to increase repeat purchases and enhance customer brand loyalty. 

 

Loyalty Cards  

 

As most of you are well aware, the cost of maintaining a customer is far less than the investment required acquiring a new one. The most valuable customers are not the ones that make the most expensive purchases but rather those that come back again and again over their lifetime. Loyal customers not only drive profitable returns, they are more likely to come to you, buy more often, try new products, recommend you to others, and become brand champions for your business. 

 

 

Loyalty Schemes

When first introduced, loyalty schemes were intended to inspire customers to become truly loyal to a brand. It was presumed that rewards of discount, bonus points and special offers were enough to encourage repeat purchases from customers. It quickly became apparent however that customers carry multiple loyalty cards and simply collect rewards wherever they shop.

 

The true benefit of loyalty scheme cards lies in the valuable customer insights they offer businesses: who are the most profitable and least profitable customers, what do they most want and what changes or offerings would be most likely to make them truly loyal. However while the customer benefits from small discounts, traditional loyalty schemes on the most part fail to achieve their intended purpose of enhancing the customer lifetime value by creating a truly loyal customer.

 

 

The Secret Society

Cue the emergence of the ‘secret society’ customer loyalty schemes. How would you feel if you were one of the select few who knew about a secret pop-up-shop sale in a retail store? What if you were given access to stock that wasn’t available to the ‘average customer’ off the street?

 

 Whisper Secret

 

Giving loyal customer’s exclusive access to items, menus, locations, particularly when they are not advertised to the general public not only develops fierce brand loyalty but also delivers a unique enhanced brand experience, at little extra cost.

 

Fast Food restaurants and coffee chains have long prospered by making their service a scripted experience, managing costs by offering customers a restricted menu option. Now what if we told you that McDonalds, Burger King, Subway and Starbucks were some of the many brands who have a secret menu known to only fraction of their customers?

 

Secret Menus 

 

These are not simply made-to-order items for the picky customer, these are a list of options known to staff which have been allocated valuable prep time, inventory management, and storage space to make sure they can serve the item. These secret items are based on loyal relationships between the brands and their regular customers.

 

In–N–Out Burger in the US is the most famous ‘outed’ secret menu story. The company always had a ‘desire to please its guests’ as a core value of the brand. When regular customers began ordering variations of the standard menu with such frequency that they were given names by the staff, the ‘secret menu’ was born.

 

 

The Secret Strategy of Special Treatment

The essence of the “secret” strategy is the word-of-mouth by regular customers.  The item can’t be marketed through other means or it quickly looses its appeal. Customers like to feel that they have almost VIP access to things their peers cant get. They develop an affinity for the brand and are often willing to share their ‘insider’ information with a select friend who too will be eager to claim access to this secret society of special customers. Nothing boosts loyalty like a little special treatment.

 

Big brands such as Starbucks can handle when their secret menus are shared publically. Once the item is not on the menu and the majority of customers are not aware, loyal customers still gain a sense of exclusive treatment. The brand benefits from greater customer awareness of the ‘secret’ menu because it lends a fun or intriguing element to the brand image. For smaller brands, having a more tightly guarded secret offering could inspire prolonged loyalty from valuable customers in the know.

 

 Secret Club Bag

 

Reward your loyal customers with access to special offerings. Make the offering worthwhile; something they want based on their purchase history. Remember, it should be a bonus not a burden for the customer; do not require them to fill in forms etc to gain access. Knowing what to ask for should be enough.

  

 Secret Pop Up Shop

  

When you let your loyal customers in on the secret make sure they know its not for everyone, but not so much of a secret that nobody knows; while keeping the secret offering to a select few is necessary for its success, the more people in the select group the more loyal customers you develop for your brand. 

 

• Could a secret offering boost brand loyalty with your customers?

 

• Could a little mystery enhance your customer’s brand experience?

 

• How could you introduce ‘secret’ rewards for your ‘loyal’ customers as party of your brand strategy in the year ahead?

 

Winner Best Blog Award Ireland 2012, of an SME

The Blog Awards Ireland were held last month and much to our huge surprise and honour we Won the Best Blog of an SME, Ireland 2012.

 

 Winner Blog Awards Ireland

 

Having only belatedly discovered the level of entries and read the judging criteria applied we’re feeling even more thrilled and privileged to have been chosen. 

 

Unfortunately due to being overseas at the time we actually missed the awards night. However Sage, the sponsor, delighted us by recently presenting us with our award at their offices.  

 

Lorraine Carter Persona Design 

 Lorraine Carter of Persona Branding & Design presented with her Blog Awards Trophy

at Sage offices by Sage Digital and Marketing Manager, Avril McArdle

 

Thanks again to all the organisers, volunteers and sponsors of Blog Awards Ireland and congratulations to all the other category winners too. To take a look at some of those fantastic blogs check out the other category winners on the Blog Awards Ireland website. They are definitely worth reading.