Brand Story : The Key Ingredients to What Makes It Compelling

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If you were asked to sum up your brand story in a valuable two minute radio sound bite or TV interview could you do it? If the answer is “NO” or you hesitate over your reply, then maybe its time to re-evaluate what your brand story is all about.

 

Is Your Brand Story

Worth Listening to?

  

Being able to succinctly articulate a compelling story around your brand, how it came in to being, what its all about, why it matters to your primary customers and where it’s heading into the future is crucial to your success. Stories connect people and your brand story is what gives it meaning and solidity, helps define its values, shapes its destiny and captures your customer’s imaginations, thereby attracting and engaging their ongoing interest.

 

A brand’s story isn’t a nice ‘add on’ for marketing purposes either. Rather it’s the foundations and inspiration for your marketing strategy – supporting the way you drive awareness and sales for your product or services and ultimately increase your business’s profitability and growth. The more compelling your story, the more powerful your brand.

 

A great brand story can be unifying (for both customers and stakeholders), motivating and inspiring for your teams internally and give the work they do more direction and meaning, thereby enriching the environment in which they work, all of which filters through to the experience your customers have with your brand through your front line staff – your brand ambassadors.

 

Brand stories are never static either, they continue to develop over time in order to stay relevant and respond to customer demands and ever changing market dynamics.

 

 Ben And Jerrys Ice Cream

Image via Ben&Jerry’s

 

A great example, amongst many, of a brand with a very powerful story is Ben & Jerry’s Ice Cream. The tale of two young men who were determined to set up a company which would embrace sustainability and share prosperity (with employees and stakeholders alike) and, incidentally at the same time produce amazing ice cream, all of which hooked the imagination of the US public. Their story then went global and the rest is history.

 

Ben and Jerry’s aim today, they declare, continues to centre around finding interesting and unusual ways to improve the quality of life for individuals, produce top quality all-natural, wholesome ice cream and respect the environment at the same time…

  

 

  

Back in the UK, the well-known healthy fruit drink brand Innocent had a great story which, crucially, captured not only the imagination of consumers but journalists everywhere. Three Oxford educated students who wanted to produce drinks which would boost the nation’s health using only natural ingredients went on to succeed where many others had failed.

 

 Innocent

Image via Telegraph.co.uk

 

Their commitment to their cause and brand ethos couldn’t be faulted. Their packaging was simple and amusing yet full of character – and their social media channels (they were early adopters) reflected the same brand story and personality traits too. They had energy, enthusiasm and innovative marketing techniques to capture their core audiences attention.

  

 

  

Interestingly their brand has been bought over by global giant Coca Cola yet that move hasn’t dented the brand’s success. Innocent still continues to sell under the ‘wholesome goodness banner’ brand story and to this day it still continues to resonate with their customers. The brand was powerful enough in itself that it didn’t matter who owned the company. Their brand ethos and customer base had already been established to such an extent that the smooth take-over was hardly noticed. The brand has become a living entity in its own right.

 

Historically Innocent’s engagement with consumers began even before they’d launched. Following a busy day selling fruit drinks at a festival, the three owners asked their customers there whether they thought they should start up in business. The rest is history and a very successful and profitable one at that.

  

Lego Logo 

  

Lego, another long established and much loved Danish brand, with a compelling brand story too used a series of amusing YouTube vignettes in their video The Lego Story which they used to re-tell their brand story when they celebrated their 80th anniversary last year. It tells of their inventor, the company’s values and the commitment to their product both in terms of quality and the education of children around the globe.

 

  

The story of women’s underwear brand SPANX is very much connected with its founder and owner, the former sales trainer and stand up comedienne Sara Blakely. Her story of being unable to find tights she liked, then inventing her own, resonates with every woman who has a bulge or two to hide (at least the first part does!). This ‘everywoman’ even had her mum draw the design for the original prototype.

 

 Spanx Leggings Packaging

Image via themagicknickershop.co.uk

 

Today, proceeds from every pair of SPANX sold go towards the Sara Blakely Foundation which helps women in underprivileged parts of the world start up their own businesses through education and entrepreneurship.

 

 

Some re-occurring themes, worth reflecting on when reviewing elements of your own brand story, have appeared in each of the powerful brand stories mentioned above – however they must be authentic and real!

  • Share what you care about to engage your audience emotionally
  • Localize wherever possible in order to speak directly to local communities and create engaging connections
  • Encourage individuals to make your brand their own and become your brand champions

 

When creating your own brand story, be absolutely clear on what you want to communicate and why it’s important to both you and your core target audience. This should centre on who you are, why you’re doing it, why it’s important – so customers care, and what differentiates your brand from your competitors. To be truly engaging it must evoke strong emotions in your audience and ooze personality!

 

Your brand story must consistently underpin everything you do within your business, be the filter through which all your communications and brand strategy flows, influence the way in which you interact with your customers and shape the experiences they have through every touch point of your brand.

 

  • What’s the ‘truth’ or ‘inspiration’ behind your brand story?

  

  • What’s significant about your brand story compared to your competitors?

  

  • Have you considered how to consistently communicate your brand story and brand values through your fully integrated brand strategy?

 

 

Branding for Women: 80% Plus of FMCG Buying Decisions Are Made by Women

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At least 80 per cent of household buying decisions today are typically controlled by women, especially in the areas of fast moving consumer goods. The question is, are you developing and marketing your brand effectively to this dominant ‘wallet controlling’ audience? Is your brand positioning, story, values and offering resonating with their needs? Are you capturing and holding their attention or have you overlooked their buying power?

 

And just in case you were breathing a sigh of relief because your brand isn’t in the FMCG category, don’t get too comfortable or complacent either. US marketing expert Marti Barletta points to an old report by the Automotive Service Councils of California way back in 1999 which showed that even then, females influenced 80 per cent of all car purchases and in 95 of 100 cases had the final say when purchasing decisions were being made where couples were involved. In addition, an article in Business Week (2004) showed women bought two thirds of all cars sold and influenced 80 per cent of sales. I mention these old stats for my more sceptical readers because female purchasing power has continued to grow year on year, and even more so relative to this older research.

 

Surveys into consumer electronics have likewise shown that women spend just as much as men on ‘gadgets.’ However females tend to buy at a later stage in the process with the early adopters of technology being men. Women tend to buy once ‘the problems have been straightened out,’ said Barletta.

 

 Nokia Lumia 1020

 

Multi-national electronics brand Nokia started marketing to women after realising more females than men were buying smartphones. The brand’s senior consumer insights manager Elizabeth Southwood told Marketing Week last month: “We were aware of technology brands alienating women with their tone and messaging but also of the fact that increasing numbers of ladies were adopting smartphones which has now overtaken men, 58 per cent to 42 per cent, as well as other tech.” 

 

As a result the phone giant ran a female focused promotional campaign named Remarkable Women in which they gave a community of career types – and generally busy women who’d overcome a whole series of obstacles in their lives – a Nokia Lumia. The inference was how much having a phone would help make their lives so much easier. A whole community was set up around the promotion, launched earlier this year in the UK, and is continuing to gain momentum.

 

Remarkable Women

 

Image via Remarkable Women (Facebook)

 

Research has also shown that not only do women tend to make most of the spending decisions in the household, for both everyday and larger items such as furniture, their decision-making process as a rule tends to differ from their male counterparts. That’s because women prefer to go into secondary considerations such as other brand options as well as features, benefits and price. Men, on the other hand tend to be more focused and judge whether or not it satisfies their primary consideration i.e it plays music and looks good.

 

 Office Max Logo

 

US stationary company Office Max earned themselves a precious CNN news spot when they decided (like Nokia and its smartphones) that their target market was the wrong gender emphasis. They changed from a more male to female marketing focus and stocked up on ‘prettier’ products such as coloured folders – while at the same ensuring there was more variety in most ranges (remember, women like to ‘weigh up’ the choices).

 

Unilever’s anti-perspirant Axe initially marketed a limited edition fragrance to young men until it discovered around one quarter (500,000) of its social media followers (Facebook and Twitter) were female. There followed a marketing push towards the fairer sex (along with a ‘refined’ product). The following are adverts for the same brand but marketed at different genders.

 

 

The brand’s target market however was still young men – they had simply expanded it to include young women. Axe’s head of strategy Jonathan Bottomley explains: “You can’t be a successful youth brand today if you’re not co-ed in your approach, this is a generation where guys and girls are friends and like to hang out in groups.”

 

 

 

The world-renowned brand regarded as the so-called bastion of male toughness Harley-Davidson did an ‘about turn’ several years ago when they introduced the SuperLow – a lighter bike suitable for women – in an effort to capture the market for females and first-time riders. They also held ‘women only’ in-store safety nights twice a week in 650 Harley dealerships. Today women make up around 12 per cent of sales for the Harley-Davidson company (in the past it totalled two per cent).

 

Harley Super Low 2011

 

The above examples demonstrate that it’s essential for the majority of brands today to include women in their marketing and overall brand strategies. Not only do women make up 50 per cent of the population but, in most cases, they are also the gender with the greatest influence in consumer purchasing decisions.

 

Brands need to ensure they are gender balanced at the very least, and not alienating women, at the expense of men and vice versa.

 

  • Do you know the percentage ratio of male to female consumers for your brand and have those figures altered over time?

  

  • Do you market more towards women or men and if you were to do a ‘gender switch’ what different messages would you use to engage that particular group?

  

  • If you currently only sell to the one sector could your product or service be adapted to appeal to both?

 

 

Rebranding : How To Do It Successfully and Avoid Pitfalls

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One of the world’s biggest brands – Coca Cola – has done it eleven times, albeit in a largely evolutionary manner, since selling their first sugar-laden fizzy drink in its now-iconic bottle. Thousands of other very successful well knows brands have also done it over the decades. It’s a critical and strategic part of all successful businesses regardless of size, be they global giants or much loved more local national players. If a brand wants to stay relevant and connected then rebranding is an essential part of its continued success.

 

The degree of change in rebranding can take many forms from a gentle evolutionary update to a radical overhaul, the decisions for which are driven by strategic business objectives. Done correctly, whether evolutionary or radical in nature, rebranding can have a hugely positive impact on the bottom line, and be responsible for driving a significant increase in a business’s profitability.

 

Equally, a poorly thought out rebranding strategy can pose serious risks to your business resulting in loss of credibility, brand equity and the hard won brand asset value which you’ve painstakingly built up over the years. Successful rebranding must be given careful thought, research and planning to ensure the successful results desired.

 

To give you some further insights into both the ‘hows’, ‘dos’ and ‘donts’ of rebranding we’ve included some examples in this article, which will provide you with some direction, if considering rebranding in your business. Disasters and successes are both learning tools when analysed from an informed perspective, there are always invaluable lessons here for us all!

 

 

Top 3 Reasons to Rebrand

1. Brand Evolution : Over Time We’ve Changed…

Sometimes a company moves on but its brand doesn’t. In other words, it doesn’t represent what that business ‘stands for’ or does any more. This was the case with American Airlines when its executives felt they needed to rebrand earlier this year. The rebrand included a complete re-evaluation of what the brand stood for, and how it was perceived by stakeholders, both internally and externally in the market.

 

Evolution Of American Airlines Logo

Image via Lost Press Marketing ©American Airlines

 

Part of the rebranding process included an update of its visual icon, the brand identity, which hadn’t seen much change since its introduction back in 1968. Its important to note that brand logos are a shorthand way to remind us of a brand’s relevance, associations and reputation in the market and are a by-product of all a company’s brand building efforts over time. They are the visual aid or trigger that reminds customers of all the emotional and rational reasons of why they love (or in some cases dislike) a brand but they are not the ‘brand’ in themselves, merely the visual identifier.

 

When American Airlines analysed its brand logo in the context of what the brand stood for now in the current market, the old symbol wasn’t seen to meet current needs or communicate the core brand message any longer. America’s number one airline needed a more streamlined and vibrant visual image to represent the brand in its full context. They also wanted to let go of what they termed the ‘bullying emphasis’ they believed old logo represented, according to one senior AA executive:

 

“The old identity was slightly skewed to a more powerful American image. We needed to move it to [what we call] ‘American spirit,’” he said.  “That’s the side of America people really, really love. People have huge love for the eagle, but not necessarily the eagle in the downward position potentially attacking someone.”

 

 

   

2. Reputation Management : Negative Brand Sponsorships…

Brand sponsorship of significant high profile events, causes or people such as celebrities can reap immense rewards, through the association for the brand. Equally it can also cause reputation risks too, if for example the person concerned suddenly becomes embroiled in a publically unacceptable behaviour or expresses a controversial opinion or becomes aligned to something which is the opposite of what your brand stands for.

 

A simple example from the USA is a Missouri restaurant owner who’d named his restaurant after a Missouri basketball star (Albert Pujols). When Albert Pujols left the Missouri St. Louis Cardinals to play for the Los Angeles Angels suddenly ‘Pujols 5’ wasn’t the go-to restaurant in town anymore. In fact, it became the opposite, the owner received numerous cancellations, his premises were vandalized and a police cordon had to be set up to deter further damage. Sales dropped a whopping 75 per cent and it seemed as if the business was about to go bust. Indeed customers are filmed saying they doubted it would survive even a year.

 

A radical rebrand became critical to the fundamental survival of the business. In fact the rebrand required a complete name change to ‘Patrick’s Restaurant & Sports Bar’. The restaurant re-established itself successfully in the market with the rebrand and most importantly, in the minds of its target market, enabling the business to grow again profitably.

 

Unfortunately, in the case of US family-run firm ‘Ms & Mrs’ their brand wasn’t just broke but demolished – thanks to a much-anticipated promotion in a TV show which turned out to be a definite brand breaker as opposed to booster. The presenter on the ABC talk show, mispronounced the name of their company to Mr & Mrs.

 

 Mr And Mrs Emergency Kit

 

Image via Audrey Lifestyle Magazine  ©Mr & Mrs

 

As a result, all that much-looked forward to thousands of dollars worth of free publicity and increased sales for the firm (it provides a variety of ‘emergency personal care kits’ for for all sorts of occaions) never happened.

 

That wasn’t the only time the name had been mispronounced. Vloggers had accidentally altered it too or even had trouble saying it in the first place. Enough was enough. It was time to do something. So the family rebranded and changed their brand name. In order to avoid any confusion, they chose a new name completely different from the original and became ‘Pinch Provisions’.

 

 Pinch Minimergency Brides Kit

Image via ©Pinch Provisions

 

They also did a brilliant pre-name change video – using humour to make fun of themselves (and no doubt endearing themselves to thousands more customers in the process).

 

 

 

3. Brand Name Translations : Bad Interpretations

One of the key guidelines to brand naming is ensuring the name and its tag line translates appropriately across different languages and cultural boundaries. Sometimes this consideration has been overlooked resulting in unfortunate connotations or interpretations when translated into foreign languages, such as the following examples:

 

A sports drink in Japan, produced by Otsuka Pharmaceutical Co and aimed at replacing electrolytes lost in sweating is named Pocari Sweat (which we reckon wouldn’t go down well in English-speaking countries).

 

Pocari Sweat Ion Drink

©Pocari Sweat

In Germany the computer Commodore VIC-20 had to be renamed to the VC-20. The reason for this is that VIC in German would be pronounced fick which means (well, in English you’d put a ‘u’ in place in the ‘i’).

 

The American SciFi channel wanted a new text friendly name. Unfortunately they choose SyFy which in many countries turned out to be slang for syphilis.

 

Online marketing company PinCrusher used to be known as PinBot – until they realised the word ‘Bot’ didn’t have particularly good connotations (being associated with as a web crawler). It could also be extremely confusing considering their business was internet based and involved the selling of a Pinterest app…

 

Rebranding isn’t something that can be taken lightly. It needs to be strategically driven and supported by considerable market research to find out what’s working, what isn’t. Most importantly new potential rebrand approaches should also be ‘tested’ and researched, before full development and launch to market, to get feedback and ensure target audience ‘buy in’. Make sure you find out and know where and why to keep the good stuff, and bin the out of date or compromised, to ensure your rebrand launch is successful and increases your profitability.

 

• If you’re considering rebranding do you really know what works well for your brand and what aspects of it could do with a revamp?

 

• Have you researched your target audience to test brand sentiment and get feedback both at the beginning of you rebranding project and again at an advanced stage of development to test your new positioning/concepts etc.?

 

 

Brand Expansion: Give Your Customers What They Want!

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If we learn nothing else from the fast food and drink industry it is that complacency has no place in the business world, even among global brand leaders. A trend has emerged whereby large fast food and coffee retailers are expanding their brand model into new areas in order to capture new market opportunities and extend their customer offering.

 

Listen To What Your Customers Are Saying

Often, an expansion of an original brand offering is the result of a brand trying to remain relevant to the customer and their ever evolving tastes. 

 

Starbucks, arguably the largest and strongest coffee retail chain in the world recently began rolling out a new concept for the brand: Starbucks Evenings. This expansion of their original strategy sees the coffee giant expand their offering to alcoholic beverages along with small plates of artisanal food.

 

 Starbucks Evenings

 

The concept is a response to customer feedback calling for more options to relax in store in the evenings. Starbucks’s expansion of their food and beverage options aims to create a new occasion for customers to visit their stores. By engaging with the customer, Starbucks captured valuable insight into the changing needs and behavioral trends of their customers and expanded their brand offering accordingly.

 

 

Increasing Loyalty and Increasing Revenue

The success of McCafe demonstrates McDonalds ability to listen to customers and a willingness to make them happy. The brand identified that their customer’s were coffee drinkers but went elsewhere for their coffee purchases, as McDonalds coffee was deemed lesser in quality. McDonalds responded in steps; first by introducing 100% Arabica beans for their coffee to produce a better quality coffee and provide credibility as a quality coffee provider. Then introducing Iced coffee to the menu before launching the McCafe brand expansion.

 

 Mccafe Selection

 

By listening and responding to customer feedback the brand succeeded not only in enhancing the brand experience for their customers, but through the expansion of their brand offering, McDonalds succeeding in capturing a valuable share of the coffee market.

 

 

Expanding Your Brand To Strengthen Its Positioning

Progression is important for any brand and Starbucks Evenings aims to evolve and enhance the brand experience based on what the customer are telling them.

 

 Starbucks Evenings Twitter

 

While this expansion of the brand is being communicated as being a customer-centric strategy, the move serves a dual purpose. Not only are Starbucks aiming to satisfy the evolving needs of their loyal customer base, the expansion of the brand experience leaves them less dependent on the increasingly competitive coffee chain market. If the expansion is successful, the brand will enjoy a stronger position in the minds of their target customers and be less susceptible to the effects of direct competition from other coffee chains.

 

 

Expanding Customer Perceptions

The Starbucks move might look like the brand is deviating from its core business, but the strategy is not unlike that undertaken by McDonalds when they first introduced breakfasts to their menu. The brand identified an untapped market in the breakfast sector and then worked to change customer’s perceptions of the brand as a plausible breakfast provider. Years later, and McDonalds has redefined the market as a profitable route for fast food brands.

 

 

 

McDonalds are a great example of a brand that constantly looks for fresh ways to expand the brand to increase growth and market reach. Without deviating from their core brand values, McDonalds has expanded the brand into unlikely avenues and succeeded in exploiting previously untapped markets in the fast food industry.

   

 Mcdonald 2010 Weekday Breakfast Special

    

The brands latest move McDonalds “Nocturnivore” is a response to changing customer habits and potentially lucrative unexploited dining times. Just as Starbucks is trying to open up a low-traffic daypart with alcohol sales, McDonald’s is testing a “Breakfast After Midnight” menu for the relatively untapped “fourth daypart” — between 2 and 5 a.m. The “Nocturnivore” menu and campaign is promoting late-night dining of not only dinner but also breakfast items. Less than 1 percent of total fast-food traffic comes in during those hours, but 1 percent is still 1 percent.

 

 Mcdonalds Nocturnivore2

 

Sometimes the market share we need can be created rather than earned. Listening to our customers or redefining markets can open up huge possibilities for new revenue channels, new market relevancy or market repositioning.

• What could you do with your present brand offering to expand your current reach beyond the obvious status quo and grow your market share?

 

 

 

Brand Heart: Are You Bringing Your Brand To Life In Your Work Space?

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Hearing someone say they work at Google seems to have the same effect on every listener regardless of their industry background…Wow!

 

Google Green Dublin

 

It’s a true testament to the Google leaders that they have created a reputation of being such a desirable place to work, but lets face it, it’s not just because of the type of work carried out there. With unique, fun, quirky, often bizarre office interiors, which include slides, video games and ski-gondolas, Google lead the way in a trend to change the traditional view of what a corporate office should look and feel like. There is method to the supposed madness.

 

 Google Office Slide

 

Google, Facebook, Airbnb and so many of the newer global companies, along with a few of the longer established, understand that the culture and physical experience of your company is a huge part of your company brand. They understand that it is the people and living experience internally behind the brands that help to dictate how the brand is perceived externally.

 

 Google Ski Lifts

 

An office is far more than walls, desks and computers. It’s a recruitment tool, a second home and a place to inspire those who work within. If a leader’s job is to get the best from their employees then part of that responsibility is creating a space that motivates people to make the most of shaping and growing their brand.

 

 Facebook Office Pan

 

If you care about company culture and authentic brand experience then the office space matters. It is an important part of how the employee views their work. But flashy spaces, open plan offices and bean bags are not for everyone. A place without quite spaces can be just as ineffective as grey cardboard cubicles. There are certain elements however that will provide triggers to employees and customers alike about the company culture that may need to be addressed.

 

 Facebook Office Photo

 

• Collaborative Space

You don’t have to be a creative company to have a need for a collaborative space. If people arrive into the office, go to their desk and stay there until the end of the day then the company is not maximizing the benefits that come from employee interactions between the company thinkers and innovators. A dedicated collaborative space that can be used for informal interactions can make employees more comfortable to contribute, to share opinions and develop new ideas.

 

 Google Hq Zurich

 

• Brand Ambassadors

Employees are your brand ambassadors. Creating an office space that reminds them each day of what they and the brand are trying to achieve can be a powerful motivator.

 

Mindvalley Kuala Lumpur Malaysia

 

• Reflect Your Core Brand Values

If sustainability is an important ‘value’ underpinning your brand, then this should be communicated using internal triggers as well as external communication. Using and promoting recyclable materials within the office for example ensures that those working to build the brand understand that the company genuinely believes and lives by the values they promote. You are authentically living that brand value and reinforcing it everyday in what you do.

 

Education First Lucerne Switzerland

 

• Recruit The Best

Google and Facebook offices are designed not only to serve current employees, but to attract the best talent. They use their office space to communicate the type of culture they promote internally and to attract ‘like minded’ people who can fit within that culture and become part of the brand family. Both understand the needs of the people that work for them and have been hugely beneficial to the organisation, as employees reciprocate with high levels or productivity and efficiency.

 

 Vocus Beltsville Maryland

 

• Create Customer Cues

PR and advertising can support a strategy that communicates a brand’s vision and values, but that can be destroyed at the workplace if the office space doesn’t align with the promise of your brand message. If your brand communicates a sense of community or creativity, but your offices are comprised of people working separately behind closed doors what kind of message does this send to your customers? Internal triggers and experiences can make a significant external impact. Even reception rooms and meeting room names can tell a story that reflects the brand. Think about your customer’s brand journey. How would your offices influence the customer’s perspective and experience of your brand?

 

 Airbnb Conference Room Mushroom Cabin In Aptos California

 

Company culture is not something that can be created from blueprints. It is something that is shaped by the people working within. Leaders can influence it, they can coax and enable the desired type of brand culture but even the well intentioned leader can inadvertently establish dysfunctional workplaces by creating a workspace that is at odds with the brand values and messages the employees are working to shape.

 

Google may have developed a reputation of a fun, goofy place to work, but what it really signifies is a deep understanding by its leaders, that the environment can play a significant role in creating the balance needed to promote problem solving and creativity in an industry that demands both.

 

If you can’t glean clues about the brand or the people behind it from walking in the door of the office you could be in trouble. Get your office ‘on brand’, and it could play a valuable part in supporting your innovation, productivity levels, marketing mix and consequently profitability coupled with long term success.

• What do you think of some of the world’s ‘coolest’ offices?

  

• How does yours compare? Is it ‘on brand’ or congruent with what your brand stands for?

 

• Does your office space encourage collaboration, innovation and creativity?

   

• Does your office space reflect your brand culture?

 

 

Sub-Branding: How Many Brands Do You Need To Get A Profitable Return?

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What happens when a successful brand fails to impact within a new market or market segment? When despite best efforts, the brand cannot make itself relevant to a new market? Is introducing a sub-brand the answer?

 

There are instances when sub-brands hold the key to expanding market share and broadening profit opportunities. However, sub-branding also runs the risk of jeopardizing the strength of the parent brand if implemented without due diligence and careful analysis.

 

Air Canada Rouge

 

   

Effective Sub-Branding Strategies

 

1. Entering Markets That Are Closed To The Parent Brand

Air Canada recently launched Rouge, a low-cost sub-brand airline created as a means to serve new market destinations that the existing model could not serve on a competitive basis. Air Canada’s original brand value structure would be compromised if the parent brand cut their prices and changed the quality of their value proposition. Rouge aims to be a proactive manoeuvre by the brand against new low cost carriers operating within Canada.

 

 

 

Disney releases Certified 18 movies under their Touchstone brand as doing so under the Disney name would be incongruent with the Disney brand identity and what it stands for; magic, fun, wholesome family experiences full of happy memories and happy endings!

 

2. Satisfying Segmented Customer Needs

Hoteliers segment their market by brand type and frequently introduce meaningful sub brands to serve new customer needs and enter new markets. By separating the hotels into sub-brands, Hoteliers can highlight the different value bundles offered under each brand. It provides clear distinction for the customers on the level of service to be expected from each sub-brand, providing an obvious choice for the business or luxury customer versus the family on a budget.

 

 Marriott Hotel Brands

 

3. Industry Norms

Sub-brands are part of the culture of some industries. Car manufacturers frequently release cars under sub-brands. This is particularly effective when each sub-brand has a particular focus and value proposition that does not overlap with other sub-brands within the family. Toyota’s Prius has a very definite brand identity and serves a focused target market. It allowed Toyota to create a leading position within the environmentally conscious market segment and made the Toyota brand more relevant with that customer group.

 

 Toyota Prius

 

 

Sub-Branding Risks

Sub-brands have been known to help companies thrive, capturing new market segments and introducing a parent brand to a wider audience. However sub-branding can come at a cost too.

 

1. Reduced Impact of Parent Brand

Establishing and marketing a sub-brand demands a considerable investment of capital and resources. In most cases sub-brands move resources away from the core brand, risking potential sales of the parent brand itself. The success of the Coors Light beer came at the expense of a loss in market share of the parent Coors brand due to the reduced marketing budget available to advertise Coors.

 

 Coors And Coors Light

 

2. Create Competition

Sometimes sub-brands can invite competition within a sector, creating obstacles that previously did not exist. American Express had established itself as the premium brand within the credit card market. Then it decided to introduce sub-brands: the American Express Gold Card and American Express Platinum. Suddenly it opened up the opportunity for competitors to launch their own products aimed at the high-end customer, forcing American Express to fight for its premium position.

 

 American Express Cards

 

3. Over Stretch Marketing Resources

As with any strategy, introducing a sub brand offers both pros and cons. The general consensus is that companies should operate with as few brands as possible to maximize the impact of limited marketing resources.

 

Marketing will appear weak and ineffective if it is spread too thinly. Economies of brand, strategic focus and clear efficient internal operations can often give the parent brand the support it needs rather than employing a sub-brand strategy.

 

While sub-brands can help to upscale or downscale a brand offering, without clear differentiation a sub-brand can cause real confusion with customers as to the value proposition and unique offering of each sub-brand.

 

Remember, if your core brand is failing to make an impact within a market there are other strategies that may serve your corporate goals. Identifying the possibilities at hand such as expanding core values, evolving the brand structure or reinterpreting existing brand values could have the desired effect and impact with your target customers. 

 

Before you explore developing sub-brands ask yourself this: how many brands do you need to get the job done?

Why Align Your Brand to A Worthy Cause?

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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?