The Brand Union

Building a trusted brand in China

Tue, 15 Apr 2008 00:00:00 GMT

In a country where harmony is an explicit and politically directed theme underpinning all areas of social and economic development, there are two pervasive concepts that are struggling to achieve just that.

When I first moved to China in early 2006, an experience I had in my “local” bank presented an acute example of the type of relationship a company had with its customers. On the forms counter, where one applied for a credit card and other banking services, there was a sign in Chinese that read “don’t cheat.” I found it amusing as I did provoking. Two years on, and the issue of trust has multiplied exponentially. From financial institutions to food products, from personal health and beauty products to toys and medicines, trust is an overriding factor that drives purchase decisions, brand preference and loyalty. And it is now a critical issue for many.

Why? Not just because numerous high profile cases of unforgivably poor quality control and greed fuelled commercial gain at any expense have rocked national pride and trust in a broad swathe of products and services, but also because simply, many local companies over look the importance of authenticity and trust – fundamentals of brand building. And I’m not talking about advertising, which is just an element of brand building; I’m talking about the core brand fundamentals that businesses need to address effectively in order to help support their business strategies. After all, companies don't build great businesses by doing 'branding' brilliantly. They build great brands by doing business brilliantly, and by understanding the role of branding within this much bigger picture.

I believe there are three fundamentals that drive all companies, and their services and products. They are:

1. Growth. A brand is clearly positioned but it often needs help to grow – to build market share, stave off competition, innovate or extend.

2. Direction. A brand needs help in setting a direction – such as how to reposition its corporate or product brand in an increasingly saturated China market.

3. Protection. Companies need to protect their brand, which is being threatened by copy cats, poor quality control, and a lack of understanding or commitment from their employees or other key audiences.

Everything a brand does within and around heir brand world needs to be managed, consistent, and true to the brand itself. If a brand fails to establish credibility with all its stakeholders – internal and external – it will fail, or at least sustain damage that will dilute its commercial performance. Additionally, it needs to sustain its brand promise by consistently providing an appropriate experience, as Apple and LVMH do so effectively.

However, in the rush to get to market and sell, sell, sell, many Chinese brands take brand shortcuts, choosing to focus on short term gain rather than long term loyalty. One should never forget that consumers in China are increasingly becoming savvier; more and more demanding of their brand relationships, and more and more sophisticated in their choices. This rapidly changing complexity presents many challenges, and through the multitude of messages received via various fragmented mediums, and the presentation of a vast array of similar products, consumers have to make choices every day. And they do; and more often than not they are driven by their emotions.

Destroy a consumers’ trust – like the Häagen-Dazs affair in 2006 – and it takes a long time for a brand to recover. Brands cannot blame third parties, administrative failures or government when consumers experience fault or problems. They must take responsibility for managing their own brands through all scenarios and commercial climates. From Roewe to Shuang Huan, brands need to work harder, and become smarter at integrating their brand strategy with their business strategy to build and sustain trust in order to ensure optimum health and commercial success.

Fine Tune Your Research

Wed, 10 Oct 2007 02:26:48 GMT

We’ve heard it before: “Let’s put together a focus group” or “What do the numbers tell us?” In these cases, our colleagues are often looking for primary research to tell them unequivocally what to do next. But while research can be a wonderful tool, we need to remember that it alone doesn’t give answers; it provides guidance.

Articles on research dos and don’ts tend to focus on tactical issues, such as samples (where researchers may have just spoken to children without including the grandmothers who buy) or questionnaire structure (where the crucial factor in people’s decision-making wasn’t identified). Rarely addressed is whether people are undertaking research for the right reasons and with the optimal methodology.

Successful research begins with a clear set of objectives that can help select the most appropriate research methods. For example, if one is looking to explore the opportunity for a new product, qualitative methods might be right, whereas, if you’re looking to measure awareness of your brand, a survey or other quantitative tool is the best approach.

Even if you start with clear objectives, there are other pitfalls that can derail well-intentioned research.

Picking the wrong fight

Often, qualitative and quantitative methods are pitted against each other as rivals, when in reality they are both essential and complementary. Taking either approach alone poses risks that should be carefully evaluated before choosing an either/or route. Ideally, most research would benefit from both: Do some qualitative research to get a sense of what customers are looking for and then size or prioritize it through a quantitative study. Unfortunately, time and budget constraints often preclude this. If so, matching the right methodology to the objectives is often more important than deciding on data.

Focus group monomania

In many companies, focus groups have become synonymous with qualitative research. While they’re suited to meet many objectives, focus groups also have distinct disadvantages – among them, professional “focus groupers” who have dominant personalities or submissive ones. Either can lead to misleading results. A more complete portfolio of qualitative research methodologies should be considered when gathering marketplace feedback. In-depth one-on-one interviews are often overlooked. Some moderators might lack the skills to elicit a structure from free-form exploratory interviews. When conducted correctly, one-on-ones can yield rich insights into consumer motivations and behaviours.

Loving the numbers too much

The pursuit of cold, hard facts has led many marketers to pursue the ultimate marketing ROI tracker and predictor. There are now many quantitative methodologies that claim to provide the ultimate in brand valuation and quantification, but there’s no standard approach.

Misrepresenting results

Even if a research program is executed perfectly, the work can be jeopardized at the very end. Often, executives misrepresent research findings, picking and choosing numbers and charts that best suit the point they are trying to make, irrespective of clarity, consistency, and the potential for tracking future discrepancies. But, by properly combining research findings, savvy insights, and gut instinct, marketers can learn how to better direct brand activities.

Green brands get the green light

Mon, 01 Oct 2007 10:43:10 GMT

Fair trade, carbon footprint, organic, holistic, GM-free. Green brands. It’s the trend du jour, and it doesn’t look likely to go away. But tread carefully, advises David Blyth

Fair trade, carbon footprint, organic, holistic, GM-free. A myriad terms pepper recycled papers on the Green Revolution and are enough to dazzle even the best intentioned. What was once the preserve of Bohemian bean-eating flea market shoppers found around Green Market Square is now becoming more mainstream as we enter an increasingly green global market. Green no longer refers to naïve but to the well-informed environmentally-conscious consumer.

There is undoubtedly a growing trend towards rising consumer consciousness in the area of green and - albeit a season behind - the seeds have started to take root in local soil. BP is a much publicised example of an international brand turning over a new leaf and espousing its environmental credentials in the global spotlight, probably spurring on others to follow suit.

South Africa has been notably slow on the uptake in comparison to its first world counterparts and the reasons are many; the severity of our more pressing socio-economic issues cannot be understated. However, the lean towards green is ignored at a local brand’s own peril as South Africa becomes all the more integrated into the world economy - both in terms of global organisations importing their brands and beliefs to our shores and our brands exporting onto shelves of more demanding markets. There is both a rise in consumer consciousness - and conscienceness - as these trends become more mainstream.

It’s the trend du jour, but it doesn’t look like likely to go away.

“Fair trade, carbon footprint, organic, holistic, GM-free. Green brands. It’s the trend du jour, but it doesn’t look like likely to go away. The expectations are already there that your brand must wear its green stripes on its sleeve. But what is it, exactly? The concept of green is all still very grey. Here’s how to go green with care.”

South Africa: Are you ready?

The expectations are already there that your brand must wear its green stripes on its sleeve, and in the face of rising demand and expectations, these green-savvy consumers are turning their gaze towards your brand.

But what is it, exactly? The concept of green is all still very grey.

Does all-natural mean 100% natural? How organic are your "organic" tomatoes, really? Is it better to buy organic tomatoes from Mexico or the locally produced regular variety that have incurred far fewer carbon miles? Just how organic is Unilever’s Organics shampoo? (Not at all, unless you count the mere inclusion of essential oils in its soapy ingredient).

The simple inclusion of words such as "pure" and "natural" in a product’s name or description lend themselves wholesome value associations that don’t necessarily have wholesome origins, only muddying the waters further.

Even the best intentioned consumer has a hard time discerning their organics from their apples.

Despite the growing development of the green market, an industry-wide and legally-binding definition of what constitutes "natural" is still lacking, confusing both the industry and consumer. This is not helped by manufacturers exploiting the legislative loopholes and "green washing"; many products champion natural credentials even though the percentage of natural ingredients is in fact negligible or unconfirmed.

Who can you really trust?

Sowing the seeds of change:

Woolworths, perhaps endowed with a foresight inherited from its British sister Marks & Spencer, has well-developed equity in the area of wholesome values and environmentally-friendly practices as one of the first retailers in South Africa to introduce an organic range to their shelves and hormone-free meat and dairy products. This retailer deserves further kudos for recently indicating a comprehensive strategy that it aims to implement by 2012 to reduce its carbon footprint by focusing on organic production, extending its organic range in food and clothing, conservation, recycling and improved packaging.

Massmart has simultaneously issued statements about its new environmental initiatives, but admits that it’s not really sure where to begin in the absence of an official green blueprint - and it isn’t the only one. But it’s importantly recognising the need to take the first step to be leaps ahead of its competitors when legislation is put in place.

Why bother?

The virtues of being virtuous in an ever increasingly competitive market are many. Green isn’t just good business practice, it makes rands and sense.

Reputational buffer:
When things do go wrong, your positive green credentials can help shield you from the fall-out and forgiveness is that much more forthcoming. Eskom might’ve received less bad press over the recent power cuts had it made its real initiatives in the area of conservation and eco-power more visible to its public, missing a strategic opportunity to position the blackouts as "green-outs".
Survival:
While a poor social or environmental reputation may not yet be enough to prejudice the average consumer’s shopping list, it leaves many brands vulnerable to competitors who have invested in a more responsible image. In fact, it may not be long before perceptions of "responsible", ethical and green become hygiene factors, essential for your brand simply to survive in the mainstream.
rust in ‘natural’:
In the face of growing global scepticism of large corporates, following a number of health scares and corruption scandals, there is a growing perception that organic, natural and ethical products are more trustworthy. And in the absence of industry-wide accreditation, this is your green endorsement or stamp of approval, both enhancing your product’s visibility on the green shelf as well as your credibility.
New markets:
There is a growing consciousness and conscienceness among all consumers across a broad demographic range - including yours - so by responding to their needs and tastes, you’re staying relevant to them while broadening your reach to potential new market sets.

But a brand is only as good as a company’s reputation of promise and delivery. And your brand needs to deliver on its promises. While green may be the new black and your brand may be tempted to climb aboard the band wagon, are you ready? Is your commitment to go green an authentic statement of your intention? Can you deliver?

It takes a lot of groundwork to build that credibility, beginning with planting the seeds of culture. It needs to be ingrained and inculcated into every employee’s mind through a carefully conceived strategy. This needs to be communicated from the values contained in your strategy to external communication channels. There finally needs to be actual delivery on intent, and a team in place to manage and market this to make it sustainable.

Think carefully before picking up the green baton prematurely. It’s easy and appealing, but it won’t be genuine and authentic until you lay the right foundations in place.

Authenticity and trust

Authenticity needs to be built into the very fibre of your company and brand. This is not an overnight exercise in repackaging yourself in brown paper and recycled materials.

The current generation of our CEOs have not been taught how to handle green issues and sustainability. Until recently, these have not been main boardroom concerns and these practices are only now making their way into memos on marketing practices. Green needs to be linked back to the strategy and cultural ethics of an organisation. It’s not just about adding an appendix to your mission statement or publishing a sustainability report as an obligatory legislative inclusion in your annual report. It means how understanding the impact you have as an organisation and building that opportunity into your strategy, rather than being opportunistic.

And your internal processes need to reflect this. There is a mindset that needs to be slowly and sustainably built into the organisational culture. This needs to be completed with thorough follow-through - communicating why the company has gone this route and how, and be consistent in your communication.

Going green can’t just be a smokescreen

Before you jump on the band wagon, carefully consider how to approach at it from a green perspective. Use a natural positioning to develop a unique proposition. This unique and distinctive feature needs to be crystal clear and help you carve out a niche in an increasingly crowded market. Ethical practices such as not testing on animals are now almost expected by the market. Therefore you need to look beyond what is now common-place and look at your use of packaging, carbon emissions, treatment of staff and ethical behaviour.

The easiest place to start is with what you’ve got. Look at your products and services.

Product attributes:
For example, can any of your product ingredients be modified to be more environmentally friendly or sourced from somewhere else? Starbucks, an early pioneer of the Fairtrade movement, endeared itself to its consumer base who are prepared to pay a premium because of the coffee producer’s ethical sourcing policies.
Product benefits:
Are there any that can be emphasised, and are there any linkages to a green theme? Perhaps use of your product can enhance health and wellbeing or is more environmentally considerate. Be careful not to use this as a promise unless it is relevant.
Values:
Lastly, look for value attachments that will further your consumers’ green beliefs, such as feeling like a better globally responsible citizen by supporting organisations of the same approach.

Here are some further guidelines to add to your plan in shaping up for the green shelf:

Educate and empower:
Research shows that the more educated consumer - not necessarily more affluent - is the likely buyer of green products. As we’ve seen, the green market is a confusing place for a well-meaning but under-informed consumer. There is great opportunity in educating - and thereby empowering - your customer about ethical consumerism by providing accessible and relevant information. And thereby nurturing, growing and creating a new market.
Transparency:
In a climate of mistrust and scepticism, offering transparency in your business practices and socially responsible behaviour will support your credibility and trustworthiness in the long run. Make verifiable claims about being eco-friendly and what it means to you, and ensure that your claims can be substantiated. Else the truth will out. Use accreditation and labeling schemes to endorse your product, reassuring customers of your product’s provenance. Proudly South African is one that indicates a locally sourced good, not imported at cost to both the economy and the environment.
Price:
Price-sensitivity in South Africa is a major factor. To overcome this limitation, organisations will need to tap into South Africa’s culture of inventiveness to come up with ways of producing an augmented product that meets the green criteria without sacrificing quality. It also needs to be affordable, on a par with other prices or at best undercutting those. This remains a challenge.
Cross-over opportunities:
Use your brand to develop cross-over opportunities. Using successful brand extension across a number of segments could be useful. Don’t overlook your existing brand equity; capitalise on the trust your consumer already has in your brand. Target parents who are more easily persuaded to purchase green products for their bouncing offspring.
Shelf stand-out:
As natural goes mainstream, green goods now intermingle happily on shelves with regular products, no longer confined to hippy health stores and the dedicated “health” aisle. Seek out opportunities to differentiate in look and feel while wearing your green heart on your (packaging) sleeve.

More than skin deep, packaging is also a key opportunity to tell your story and create a belief and trust in your product. And new technological advances are breathing new life into packaging.

Biodegradable packaging is naturally a popular choice in this category and refillable packaging can literally give your brand a second life in some instances. Bio-plastics, TerraSkin, corn-based materials, bamboo and recycled paper are just some of the materials that are currently enjoying the limelight for their green credentials. They also allow you the opportunity to differentiate from your plastic-wrapped peers while being at the forefront of the green revolution.
Connectivity:
Tap into the connectivity mega-trend: Resonate with themes of belonging to a wider community through ethical consumerism. Contemporary consumers are using their purchasing to express wider political and social concerns. People regard the brands they invest in as a reflection of themselves, Buying ethically is often motivated by a consumer seeking approval and often inadvertently become brand ambassadors due to the high involvement ethical purchases necessitate.

The revolution is already here: In May, Johannesburg launched its first Green Drinks cocktail party at Melrose Arch, encouraging local greenies to meet and mingle.

Change now

While South Africa may have lagged behind to date, brands are quickly pulling up their organic cotton socks and mobilising (renewable) resources behind going green. Brands at the forefront of producing and communicating green can benefit immediately and those that take advantage now will be winners in the medium term. Nedbank has owned the green space in the financial services sector for a long time, supporting WWF and conservation initiatives, and so it has a head start in this area when it wants to start effecting further green initiatives.

Why wait for a competitor to turn the market on its head? Be the first to get it right and be the instigator of change that will challenge the rest of the market to follow.

About the author

David Blyth is MD of The Brand Union, South Africa. In his prior role as Strategy Director, he worked on the delivery of brand positioning, architecture and employee engagement projects across a blue-chip client base in Africa and the Middle East. David is a keen green advocate with an interest in developing South African brands’ awareness of their ecological impact and reputation on an international stage.

What brand is your passport?

Mon, 01 Oct 2007 02:26:50 GMT

Brands have become ambassadors for their host nation as they find themselves on shelves around the world. But how do we raise the brand equity of Africa?

It goes without saying that Italian suits and fine leather goods surpass the standards of style and sophistication of its classiest contemporaries, that quality watches tick with Swiss precision engineering; that real champagne bubbles with French joie de vivre and Cuban cigars are sought after by the fussiest connoisseurs, their appeal arguably enhanced by their “bad boy” contraband quality. Brands and their countries of origin have a strategic relationship in the minds of a consumer, a relationship that – if managed well – can be symbiotically beneficial for both product and state. Peroni is one such enterprising brand that candidly piggybacks on the style connotations of its mother country – mama Italia – to market and position itself as the iconic category leader in the premium beer category.

In turn, brands have become ambassadors for their host nation as they find themselves on shelves around the world. Nokia is effectively the face of Finland who otherwise boasts little in the way of brand exports. McDonalds is an edifice to American commercialisation and mass commoditisation. Emirates Airlines symbolises the professionalism and gleaming efficiency of the United Arab Emirates.

Whether deliberate or not, whether managed or not, we all have certain perceptions of goods based on where they come from. Your predilection towards certain goods from certain countries no doubt stems from effective nation branding. And countries the world over are recognising the powerful value of marketing themselves as a brand state in an era of increasing globalisation in order to attract foreign direct investment, recruit skilled talent and wield political clout.

Branding Africa

Which country do you most readily associate with coffee? Chances are that Columbia sprang first to mind. But did you know that the Ivory Coast produces 40% of the world’s coffee? Yet its politically-troubled Latin American counterpart clearly owns the coffee space in brand association terms. And while new world wines may be turning heads and taste buds on tasting tables around the world, a wine connoisseur is still likely to reach for a French blend over a South African cultivar.

Africa, home to almost a third of the world’s countries, only boasts two countries in the most recent Anholt Nation Branding Index’s Top 40 list. Europe contributes 18. Even Iran makes the list!

African countries are historically poor at self-promotion. While they clearly have the opportunity and marketable attributes, they have been very poor at marketing these.

While the EU had an easier job of marketing its exclusive member states, who by virtue of qualification already enjoy significant country equity, the AU faces the far more difficult job of changing the world’s perceptions of the Dark Continent until it gets the branding of its individual member states right.

But what is Nation Branding exactly? Whether managed or not, every nation already has a brand. For example, when Croatia is called to mind, scenes of warfare were most likely your immediate association a mere few years ago; now you’re more likely to conjure up pictures of idyllic Mediterranean coastline and yachting holidays.

What is important is that this awareness is managed into a beneficial space.

Of the Top 40 ranked nation brands, Africa – with almost a third of the countries in the world – enjoys only two nominations: Egypt in at 28th and South Africa at 32nd. What can we do to change this rather gloomy outlook?

From the inside out

Renowned commentator Simon Anholt argues that with globalisation, it is increasingly important that countries get their international image – their brand – right. With an increasingly wider market spectrum to choose from, countries are competing for consumers’ attention and respect. Consumers are attracted to clear and consistent messages about things people value: like competent governments, friendly people and economic opportunity.

Despite the fact that Africa is currently enjoying unprecedented GDP growth and stability, Africa is still generally and widely associated with disease, famine and political instability. And South Africa is given little preferential differentiation from the mother continent. So, it’s difficult to start with building strong brand equity into the entity of Africa, as did the EU of its European members. We need to get the branding of the member states right, getting individual countries to strengthen their equity first and branding “bottom up”.

McDonalds is an edifice to American mass-consumerism.

Where do we start? You start with the table stakes, which for tourists, investors and immigrants alike are Infrastructure, Friendly People and Safety. Every country needs to have these foundations in place before it can hope to build a brand.

But understand that table stakes are not differentiators. Identify what unique qualities your country has to offer and balance this with what consumers actually want from a country. Understand your Compelling Truth and look at what you have – natural resources, beauty, minerals, culture, infrastructure, technology – and then match these deliverables to what is really wanted from a global audience.

Tourism offers new opportunities for countries that may lack other strong brand values, but this is a narrow and fragile positioning that countries should not be tempted to restrict themselves to. Egypt’s tourist-focused positioning is precariously balanced on tourism – and as we’ve seen recently, one bomb in a tourist spot is enough to blast its credibility for a few months. While also a credible tourist destination, South Africa’s platform is strategically built across more offerings, giving us more strength post-democracy.

But if you do decide to go this route, make sure you can deliver on your intended’s agenda. Nigeria is a country that has successfully managed to improve its public persona through economic liberalisation, political stability and restructuring in the last decade. But it’s hardly top of mind of most tourists’ destination wish lists. However, on a recent business trip to Nigeria, I was surprised to notice a concerted brand campaign aimed at directing tourists to “come and see Nigeria”, which indicates to me that they’ve somewhat misguided in what it is that their country has to offer and have misunderstood their potential. While it’s increasingly seen to be a great place to invest, it’s not to visit.

Without National Pride, the best nation branding campaign is dead in the water before it begins. Nation branding doesn’t happen in isolation: it needs to involve all stakeholders, both internal and external. People need to buy into it and live it. As did New Zealand six years ago when embarking on their highly successful brand campaign, consult with business, media, tourism and academics. Capture the brand as it is collectively understood. It’s important that governments lead the process, but not control it. Importantly, government needs to enable its citizens to feel proud about their country through the provision of infrastructure; it needs to provide its citizens with the means to “live the brand”.

Lastly, your brand campaign needs consistency and longevity. It needs to transcend election cycles and special interest groups and be expressed to all audiences with a concerted communications campaign. Express these throughout Africa first – and then the rest of the world.

Changing perceptions

Perceptions can and do change. Do you remember when “Made in China” was a slur on quality only a few years ago whereas China’s recent economic growth and improved public persona has elevated perceptions of its product sophistication.

India has moved from being associated only with poverty and spirituality to being commended for its leading software, technology and highly educated people. This changing reality has been recognised and supported by government and has evolved a new middle class, strengthening its economy.

A nation’s brand is its single biggest asset. We need to build individual African brands that celebrate the colourful mosaic and limitless potential that make up this rich continent. Only then will perceptions change and “Made in Africa” can become a product’s best endorsement.

About the author

Anthony Swart is CEO of The Brand Union’s African head quarters. A deeply rooted South African with decades of experience in branding and marketing throughout Africa, Swart has a passion for developing this continent and its brands and a vision to help it achieve its full potential. He is married with three children, two rottweilers, a hamster and a Senagelese parrot.

Symbolism's power across different markets

Sun, 01 Jul 2007 02:27:04 GMT

Two recent incidents have got the branding fraternity's knickers in a twist. The first involves Barclays Bank who is apparently willing to ditch its longstanding eagle emblem in its bid to win ABN Amro. Longstanding of 317 years, to be precise. According to the Dutch public, the eagle emblem has overtones of the Third Reich in it.

The bank's emblem predates the Nazi regime by 230 years. World War II ended in 1945. So it’s taken 62 years and the hope of a merger of gargantuan proportions to evoke this controversial consideration. Comments the UK’s Daily Express: "Analysts said dropping the eagle showed how far Barclays was prepared to go to trade its heritage for effective control of the Dutch bank".

But that's a topic for another day.

What interests us here is the power of symbolism across different markets and communities. To the thousands of Barclays employees, the eagle – originally derived from the legendary bird of Ordin which features in the German coat of arms – means one thing; to ABN Amro’s tribe, it means something quite different.

While the two organisations' mutual association with the bird is without mutual allegiance to each other, here is a bank that is willing to overhaul its centuries-old identity because a single new market has sensitivities around the meanings it associates with its primary symbol. It's a real sign of globalisation.

And who's to say who's right? Who are the winners, who are the losers – and at what cost? Symbols are repositories of meaning. Whose meaning exactly is debatable and it all boils down to subjectivity.

Subjectivity

Subjectivity is one of those corollaries of democracy. A logo can't be all things to all consumers. Which brings me to the second incident that is making waves, also originating on British soil.

The new 2012 Olympics logo has yielded unprecedented public response and fervid debate, not least in the local brand fraternity here – some in favour but far more overwhelmingly not so. I exercise my right to remain impartial for the time being. Because that’s exactly what we should do. For the time being.

Presently the Wolf-Olins designed 2012 logo is being judged at face-value, without any of the merits of its strategy or intent being taken into consideration. The logo that was released to the public on June 5th is merely the uppermost visual layer of a composite identity, void of substance. The supporting narrative has yet to be unveiled and to take root. To be fair, this is not yet available. And so the debate at this stage is just premature ejaculation. How can one have an opinion?

But it's my opinion that all outspoken negative industry commentators should be branded myopic and shortsighted; while the street-side consumer can be forgiven, operatives in the branding industry should know better. Consumers build association with brands through usage and meaning is created over time. If the critics do not understand this, they frankly don't get the business we’re in.

Time decides

Brands need time to percolate, develop and take shape. We need to allow for the impact of time. In the case of Barclays, a meaning has developed over centuries wider than was originally planned for.

Over its 317-year existence, Barclays has refreshed its identity six times to remain relevant to its consumers and it now has to factor in another potential consumer base with all its symbolic subjectivities.

Time can build or erode a brand, but most important of all is timing. Brand owners need to get the timing right: the release of the 2012 logo was hopelessly off. Instead of limiting the release to a logo, it should've been presented to the world as a story, as a pitch to its client – the world's public. The logo was undoubtedly brave, and if it were not brave in its design, it'd be merely drawing on and confining itself to people's obvious and existing associations with the city of London. It's being judged on the now versus where it should be.

Brand custodians need to better manage the unveiling of their design to control perceptual outcomes. Only then can it mature from a logo to an identity.

Finding the way to a successful brand experience

Sun, 10 Jun 2007 02:26:39 GMT

Keeping consumers and finding new ones is a constant challenge for all organisations. Leaving them to get lost is unlikely to be a successful strategy. And if they can’t find their way to their destination in the first place, they will never be a consumer at all.

But people will get lost, and frustrated, anxious and even angry if a clear strategy is not in place for getting people to, and through, an environment. Next time they will find a more enjoyable place to eat, drink, visit and shop.

Is getting lost ever a pleasure or is it always a problem?

There are experiences that are designed to enhance impulsive meandering. There are environments where people just want to wander around, to lose themselves in the experience of a building or space. Places like museums, parks and shopping centres are designed to allow consumers to explore. But then, at some point they want to find a café, or a toilet, or the exit. Suddenly the signs, environmental information, building layout – the whole wayfinding system – really matters. If consumers become disorientated, they get annoyed or distressed and it affects how they remember their experience.

How do people find their way?

Wayfinding is a series of interlinked decisions. Each decision affects the outcome of the next one. And the point at which a directional decision has to be made – a decision point – is usually non-negotiable. Decision points can’t be relocated without redesigning the building layout and its vertical and horizontal circulation routes.

Some people have a natural sense of direction and a good memory for landmarks. Other people need to constantly study the wayfinding cues that are provided like signs and maps to feel comfortable. And some people pay no attention to their route or surroundings until they need to find a particular destination, and then they look for someone to ask for directions.

There are many different wayfinding aids. Some devices are used consciously like signs, sat-nav or maps. But many other devices are used more subconsciously, such as lighting, flooring, prominent landmarks or architectural features. These more subtle devices can be an effective solution to guiding consumers along preferred routes within a branded environment if they are designed with wayfinding in mind.

Good architectural design of an entrance visually emphasises it much more effectively than a sign stuck above a door ever can. Clearly defined and well-lit internal and external pathways will control the flow of people much more intuitively than a directional sign, however well designed. But signs are needed at key decision points for reassurance and confirmation. The success of an environment relies on all environmental features working together to give the same wayfinding message, through an integrated design approach and holistic strategy.

Is wayfinding really part of branding?

Whatever the consumer journey, finding the destination, then being successfully guided through the spaces has to be part of the whole brand experience. Effective wayfinding systems enable consumers to be relaxed enough to notice other information and objects along the route – something that is essential to the success of retail environments but is important in all branded environments.

Wayfinding information can be used to control the movement of consumers and therefore to determine what they see and when they see it. Differentiated flooring surfaces and creative lighting are used extensively in retail environments, but much less effectively in many other environments. Queue barriers are effective, but are restrictive and may have a negative effect on the consumer’s experience if they expected to be able to flow freely through the space. Different brands have different consumer aspirations. Different environments have different wayfinding problems.

We all know first impressions count

Spoken directions given over the phone, a map on a website, or an article in the paper all lead people to create a first impression of the brand and the wayfinding experience ahead of them. The clarity and tone of voice used for giving wayfinding information over the phone is important. Having an accurate map designed to reflect the organisation’s look and feel rather than a photocopied page from the local A-Z is also important in creating a positive first impression.

Positive second impressions

As consumers enter the environment, their preconceptions of the brand are quickly confirmed or altered by what they see. As they move through the spaces their behaviour and reactions to the environment will evolve in response to visual, audio and other sensory cues. Lighting, scents, sounds and the layout of the space are amongst many elements that will determine how long people stay in the space.

If a consumer wants a coffee whilst shopping or in a museum, following the smell of coffee is a good experience, but is often not a strategy that can be solely relied on. However, if they want to find the toilet, being able to follow a smell is not a good strategy and clear signs become very important. If the consumer can find them easily, they will resume their journey more quickly than if they wander aimlessly around the space getting lost and disorientated. They may never return to their journey at all.

What do consumers want?

Through consumer behaviour audits it is possible to identify how consumers interact with the environment, where they get disorientated, where they feel comfortable and linger, which signs they look at and those they miss. Audit findings then lead to strategic thinking, which defines the wayfinding issues that need to be considered and solutions that reflect the organisation’s brand essence. A wayfinding strategy is essential for all organisations that rely on people moving through three-dimensional spaces, rather than navigating through on-screen information, though some of the same thinking can be applied to both.

Do all buildings need signs?

Sometimes a building is designed to reflect an organisation’s brand and be a destination in its own right, without relying on branded signs. The iconic Selfridges building in Birmingham is definitely a landmark building for the city, but does everyone know it houses Selfridges, or where the entrance is? Obviously not, because signs have been installed. The ‘gherkin’ in central London is a very prominent and memorable building, but do people know what its real name is and which companies are based there?

The world famous Tower Bridge shouldn’t need a name sign, but people confuse it with London Bridge, and people failed to notice the entrance to the upper walkways until signs were installed.

Wembley Stadium with its ‘arc’ is famous as a landmark (as well as infamous because of its construction disputes and delays) before it even opens. As a destination many people already know where it is located and can see it from miles away, but signs will be relied upon when people lose sight of the arc as they get nearer and need to find a car park, stadium entrance and their seat number, surrounded by crowds of people.

Branded waypoints

Exploring alternatives to standard signs can create opportunities to reinforce the brand and enhance the consumer experience. If branded graphics or artworks are designed and positioned to also be ‘waypoints’ they can be both inspiring and functional. Waypoints are commonly used by the armed forces for navigating through environments where signs do not exist such as oceans, mountains and even underwater. A branded waypoint could be a sculpture, a hanging, a floor graphic, a creatively lit wall or ceiling. But to be effective as a waypoint they need to be describable so people can refer to them in spoken directions and recognise them when they see them. They need to be memorable so people on subsequent visits remember them. And they need to differ from each other so people are reassured they are passing, or waiting at the right waypoint.

How do people use signs?

When other wayfinding solutions are not appropriate and signs can’t be avoided, it is important that there are as few of them as possible, and those that are installed are effective and reflect the brand style. Most people use signs by first locating it by visually scanning the space, at a height they expect the sign to be located. They read it if the text is large enough to be legible from where they are standing. They then hopefully understand the information, relate it to the environment they can see and move in the direction the sign directs them, or they are confused and look for other wayfinding devices. People with visual impairments can still use signs, but they can’t visually scan the space or relate the sign to the environment it is located in. They find the sign through touching the space at a height they hope to find it.

People will also use pathways, architectural features, landmarks or lighting to confirm their direction decision. They then look for another sign or wayfinding device that is consistent with the previous one, confirms they understood the last piece of information and reassures them they are heading in the right direction. This process is repeated until they find a sign or other feature that tells them they have arrived at their destination. Each journey stage is inter-linked so one weak link or a misleading sign and the whole process fails.

Why signs don’t work

Signs don’t work when they are not visible or readable from the angle of approach or when they are not illuminated. Signs don’t work when the sign face is too glossy so glare from lighting makes them difficult to read. Often the logo on branded signs has not been designed for signage. For example the logo text is too small, or too light-weight or the logo uses low contrast colours or is too complex to be legible.

The reason why directional signs don’t work is usually linked to the arrow. The two most common problems are that the arrows on the sign do not relate to the text so it is difficult to understand which destination the arrow relates to. Or the arrows on the sign do not relate to the environment so it is difficult to understand where the arrows are trying to direct you.

Making signs work

Though we use much more than signs to find our way, signs are important. The graphics, text and three-dimensional form needs to be carefully designed. Signs should not be the designs for paper or on-screen blown up big and stuck on a square light box.

Signs can be grouped into two key types. Directional signs that always include an arrow and guide people along a route. Locational signs that tell people they have arrived at a destination (also know as identification or destination signs). Branded signs are usually locational signs, but all signs should be designed to reflect the brand essence.

Designing a single sign is easy. However, most organisations need a family of signs, not just one. Things that make all signs work are:

sufficient colour contrast between the sign and its surroundings for example, white letters on a dark grey coloured wall, rather than brushed stainless steel on a mid-grey wall
sufficient contrast between the text and the sign colour
avoiding corporate colours that are too low contrast and selecting a darker hue for use on signs
avoiding light-weight and italic corporate typefaces and selecting a bold (usually sans-serif) typeface for use on signs
text that is big enough to be read from the intended viewing distance and speed (smaller text on signs at eyelevel, for someone walking past, than on signs for drivers travelling at 30 miles an hour)
symbols that are simple and based on internationally recognised standards

Making logos work on signs

When designing a logo it is a fair assumption that it will be used on signs somewhere. Whether it is five feet high illuminated letters on the top of a high-rise building, or a logo subtly carved in stone at the entrance to an exclusive club. It is essential that when developing a new logo and selecting corporate type faces and colours someone in the team is asking ‘’what will the new logo look like on signage?” and “is the corporate typeface suitable for directional signs or do we need to select an additional typeface for signs?”

Signage is often a single page in the brand guidelines document showing a square or rectangle with the new logo placed as it appears on the literature. Signs are a three dimensional object located in a three dimensional environment. They need to be handled very differently to paper-based information to fully utilise their potential as a branding device.

Pushing the sign design boundaries

Short time-scales and tight budgets can lead to the wayfinding strategy being non-existent and the sign designs being slotted in at the end of the project. This leads to standard, functional signs that sometimes work, but will usually fail to inspire and are not likely to enhance the branded environment, the customer experience or the brand message. Signs can be innovative and creative – a wall graphic, a flooring effect, a lighting feature. Especially if the decision points are identified and ear-marked early enough and wayfinding concepts are integrated into the structure of the space.

All branding teams need someone to be asking ‘’How will people find their way around? What will they being trying to find? How can we integrate the wayfinding system into the structure of the space? How can we enhance our branded environment and consumer experience through the wayfinding experience they are going to have?”

The Role of HR in Brand Building

Sat, 05 May 2007 02:27:36 GMT

According to various surveys, low morale and discontent with the style of the management are key factors leading to high turnover. This underscores the importance of employer branding.

Managing Director of Enterprise IG Hong Kong, Debora Chatwin said “Many people equate employer branding to recruitment advertising and misinterpret it as a one-off internal marketing activity.” She expressed that the word ‘branding’ is often associated with marketing, and therefore only used by the CEO and marketing teams in developing communications for external audiences. However, the role of HR and their internal clients (employees) are often overlooked when a company is in the process of brand-building.

Chatwin advocated that HR should be included as a component in the brand-building process for the following reasons:

Focusing on the people within and organization who deliver services to clients has become a key competitive advantage;
HR can directly influence the type of people who are hired.

According to Hudson Research in 2006, 42% of HR professionals acknowledge they do not have the right employment value proposition to attract and retain the talent their organization needs.

53% of HR professionals acknowledge that their own employees would be unclear as to what the company’s core value proposition is.

29% of employees believe that their employer provides a clear and competing reason as to why their organization is a great place to work.

Chatwin believed that there is a certainly more room for HR staff to play. She advised that companies should:

Finding your Compelling Truth. All branding needs to be based on the essence and realities of your organization.
Align HR policies and procedures around the brand promise.
Strengthen your internal communications messages and channels. Streamline them with your external communications.
Appoint and empower brand champions to be the agents of change within your organization.

Building Reputations on a Proven Platform

Mon, 16 Apr 2007 02:30:24 GMT

Hong Kong's ability to attract and build international brand entity gives the city an edge as a platform to China, says one of the most experienced executives in the brand business.

Debora Chatwin, Managing Director, Hong Kong, for global brand agency Enterprise IG, has worked for over 18 years to help Hong Kong and China-based clients establish their presence in China. She says that by partnering with Hong Kong firms, overseas companies can gain knowledge and experience to give them a valuable foothold. Enterprise IG works with major Hong Kong brands such as Jardines, Hongkong Post and VTC, and in the Chinese mainland with brands including China International Marine Containers (CIMC), food group COFCO, Overseas Chinese Town (OCT) and China Resources.

After living here for nearly two decades Ms Chatwin is "fully supportive of Hong Kong", and says it retains many advantages despite the rising ease of doing business in China.

Strong economy

"Hong Kong's economy is strong and prosperous, and as one who has spent a good part of my career here I can see the benefits of Hong Kong's growth," she said. "Would companies every completely sidestep Hong Kong? I am hoping 100 per cent that it does not happen, and do not expect it will. Even though China's door has opened wider, there is still a comfort factor of going through Hong Kong.

"If international companies want to deal with a partner who understands them while at the same time understands China, they will find Hong Kong is a proven platform. Hong Kong has international exposure, and a cosmopolitan make up. Many of the people here have worked outside of the Hong Kong marketplace, so they have a broader perspective. And, we can pull people together here more easily than in China. Hong Kong is able to attract international talent because of the lifestyle, and has a proven ability to bounce back (from the Asian economic crisis, SARS etc)."

While five years ago China-based firms accounted for 26 per cent of Enterprise IG's business, today's figure is close to 50 per cent, and growing. Ms Chatwin says this is another good reason to be based in Hong Kong: China needs outside help to take its products to world markets, and its nearest neighbour Hong Kong makes the logical export partner.

"Hong Kong has what (Chinese companies are) looking for, and offers them huge opportunities. It's a door that swings both ways."

IP confidence

Ms Chatwin added that Hong Kong is still a great place for international brands to become acquainted with China. "It is a trusted platform from an intellectual property perspective, and understands the mainland culture. For us, having an office in Hong Kong means we can handle regional business, China business and international business from one convenient location."

For the brand business, it's also a great place as more Hong Kong and Chinese companies recognise the value of having a brand strategy. Branding is well understood in Hong Kong, Ms Chatwin said, with initiatives being supported by the government, Hong Kong Trade Development Council and Hong Kong Design Centre.

"A brand is not about image, it's about reputation. Companies are realising that a brand gives them greater control, and that, through branding, they can turn their acquired knowledge into profit."

Building brands you can bank on

Thu, 01 Mar 2007 02:26:58 GMT

While in the past African banks may have been able to focus on branding basics such as safety, security and convenience, they must upgrade their branding strategies in order to compete in emerging markets.

While it's difficult – and misleading – to speak collectively of banks in Africa and generalise their shared experiences across such a vast and varying geographical space, it's not inaccurate to say that banks throughout Africa have historically faced a fundamental lack of trust from their (potential) customer base. Largely due lack of education, to limited understanding of banking institutions and financial instruments and the legacy of instability in the region, there is historically an innate mistrust of banks. Whereas in the developed world – while there is perhaps a grudge view of the associated costs – banks are far more readily accepted because safety and stability are arguably a given and there is a much longer heritage of retail service.

Of course, core to building a financial brand – in fact, any brand – is trust. The same basic branding principles apply to banks and financial institutions as do to other brands across most other sectors. Banks are, after all, consumer brands.

The ground work for trust

But in these emerging markets, a bank may need to create the conditions for trust.

A case in point is Diamond Bank's considered approach to banking the unbanked in Nigeria. Following the recent economic boom in this West African country, the Nigerian middle class has only recently started to establish itself. Until now, banks catered to the government and the wealthy, typically situated not at street level, but within imposing ivory towers of closed office environments.

As a result, the man on the street has not been readily exposed to the services of retail banking, and this unfamiliarity has endured as the man on the street with newfound money to bank still regards them as intimidating and inaccessible, preferring cash in hand.

Diamond Bank, a successful local financial house, has responded to this challenge of perception by conceiving a network of "mini-branches" that will perform basic transactions similar to what one would expect from an ATM. Staffed with only one or two tellers in office booths of a few square metres in size, Diamond Bank is steadily earning the trust of its customer base through a non-threatening, informal and approachable gesture.

Developing brands in developing markets

Branding problems encountered by banks in the developed world (which typically excludes most of Africa) are different to those in the emerging economies. In developed markets, bank brands are seeking differentiation factors that go beyond the now hygiene factors of safety, security and convenience. Indeed, these have now become commoditised, taken for granted as givens. In these mature economies, there is increasingly less space to play in and banks seek to differentiate from competitor offerings in the realm of the emotive.

Underdeveloped markets, however, offer greater potential for differentiation and banks can use functional factors that are more directly meaningful. They are able to respond directly to the market’s legacy of a lack of safety, for example, by espousing the measures they have taken to put these in place, effectively safeguarding its credibility.

Nigeria's Union Bank, for example, has traditionally positioned itself in the area of safety with the pay-off line "Big, Strong, Reliable" – appealing to one of the most basic and literal needs of its customer base. But while enterprising emerging market banks can capitalise on factors that are taken for granted in maturer climates, such a positioning would not hold its own against global brands operating in more developed economies.

Evolve your positioning as your customer needs evolve

If Abraham Maslow had applied consumer needs to his model around the hierarchy of human needs, he probably would’ve said this: At the bottom rung are a number of basic consumer needs that a brand requires in order to exist. As one moves up the hierarchy, however, brands tend towards self-actualisation, the case in highly developed markets where the brand has advanced up the scale from “deficiency needs” to "growth needs", with apologies to the learned psychology professor.

Safety, stability and basic service live on the bottom rung of the banking brands' needs model. Recent structural changes throughout Africa's financial sector have largely advanced brands onto the next level in response to new favourable conditions that enable all the needs on the tier to be met; they now need to service more sophisticated needs as their customer base becomes accustomed to a more sophisticated, stable and competitive market.

In Nigeria just a decade ago, almost 100 banking licences were awarded at one stage, and as a result the financial sector faced a phenomenal credibility problem. When the reserve bank governor raised the minimum base capitalisation requirements to 25-billion Naira, a frenzy of consolidation and mergers & acquisition activity ensued in order for some of the smaller banks to survive. However, what this legislation did do as well is ensure that the safety and stability factor has now automatically been catered for.

In some less secure markets, however – particularly conflict zones like the DRC, for example – brands are still able to position themselves on the bottom rung because safety and stability are not necessarily hygiene factors or guaranteed.

Now, as the Nigerian market becomes more mature, this positioning is no longer as strong or as relevant a message – and the bank must evolve to stay relevant to its consumer, looking to the developed market for cues. What we’re seeing now is a move towards increased efficiency, better service and advanced product offering as the base needs are met. Banks that stay on the bottom tier and fail to adapt to the evolving marketing conditions and their customers’ expectations will die.

Relevant to your customers

As discussed earlier, the same basic principles apply to bank brands as to most other brands, regardless of the market in which they operate. The key is to stay relevant to your customers.

In Africa, there is now huge scope for banks who respond to the developing needs of their customers, climbing the value tiers of the branding needs model and who extol appropriate value associations. These value associations inform both the position and primary identity of the bank. These banks will increase their value by growing with their customer base through answering their needs.

Who's doing it well: "First generation" banks in Nigeria were seen as old, bureaucratic and slow, albeit safe. The "second generation" banks were perceived as better and more innovative in their service offering and efficiency, but still suffered under the shadow of instability. The new UBA bank, however, was borne of the union of the old UBA – a first generation bank – and Standard Trust Bank – a second generation bank – and their brand essence is appropriately Trusted Innovator. The new UBA is what we call a "new generation" bank and is far more relevant to the new generation of Nigerians who are entering the banking system.

The Compelling Truth

While we know that trust is the cornerstone of a brand, you need to ask trust in what? Known for what? A bank needs to identify what we call its Compelling Truth – that which your brand can truly live by and deliver on consistently over time. Is it safety in money, best interest rates or customer service? This is the space a bank can own and deliver on. Otherwise your brand stands for nothing. Firstly, the bank needs to position itself on a point of differentiation from its competitors. This could range from size and stability (First Bank), service and efficiency (GT Bank), or perhaps branch connectivity (UBA). The key is to stay core to its Compelling Truth and deliver a powerful and consistent experience.

Where there is less sophistication in the understanding of financial markets and financial instruments, there is naturally more trust in brands. In these underdeveloped markets, brand credibility is arguably even more important than in more sophisticated markets, accustomed to branding. Customers here are less educated and astute in financial services and are therefore more brand loyal, trusting in what – or who – they know. Decisions are made on broad base criteria – the lowest tier – as other decision criteria are less available in these markets. Currently, banks are banking on safety, size and service. In future, this will mature to safety, service and efficiency, as well as product innovation, access and branch connectivity, building their brand around one or two of these factors.

The identity then needs to communicate this.

First and foremost, the primary identity needs to accurately reflect and convey the values that underpin its brand, the Compelling Truth. Through an identity, you gain greater Exposure by having a face to present to the world. When that identity becomes memorable and communicable – through efficient marketing – you get Recognition, then a stepping stone away from Awareness. Ultimately, Reputation is the Holy Grail. Ultimately, the brand will embody the reputation of the business. A sound marketing plan will facilitate this but a strong identity based on the Compelling Truth will do half the work for you.

As the market evolves, the brand also needs to become more sophisticated and may need to segment its market. Brands can take advantage of operating in less sophisticated environments by offering processes and systems that are better than what is currently on offer because of the already low expectations of its market place. They’re not necessarily innovating in the area of product and services but are perceived as being innovative by introducing already accepted practices from other markets to this greener market.

Adopt a local approach

But it's imperative to adopt a local approach: for example, when trying to introduce a credit card to a market not accustomed to this and a market that doesn't have the required widespread network reach, the bank would need to create this. A savvy bank might first approach established retailer brands and get buy-in from them, persuading them to take up the credit card concept. Familiarise your market with your product with brands they are already familiar with. In this way you buy trust.

The key is to work practically and in synergy with local environmental factors.

Consider Barclays' strategy in Ghana. In conjunction with its traditional marketing approach, catering to the middle and upper income groups, the British bank aspired to appeal to a more inclusive demographic in this West African country. It wisely discerned the grassroots culture on the ground first and then sought a local ally as a point of introduction. This opportunity presented itself in the form of the susu collectors – one of Africa’s earliest pioneers of banking services. For a small fee, the susus (numbering around 4000) have been providing a "stokvel" service to the Ghanian people for generations, personally gathering the income of their clients and returning it at the end of each month as a form of savings. Barclays tailored its product offering to the susus, providing them with a bank account especially created for these collectors to deposit their funds into, and also granted them loans of their own. This enables them to build their own capital and develop their businesses by allowing the susus to extend this service on to their customer base. Barclays is also providing capacity building training to the susus, as well as education on basic financial issues. A joint venture with local organisations, the programme was developed in association with the Ghana Cooperative Susu Collectors Association and the Ghana Microfinance Institutions Network, with the vision of laying the building blocks for a truly financial inclusive society – and a sustainable client base.

In South Africa, one might draw similar parallels with FNB. In South Africa, banks grew out of the formal sector and catered to the formal sector, initially overlooking the lower income group in which saving was not held in high regard. A first in this market, FNB observed the "tata ma chance" culture among the lower- to middle-income groups who would rather put R100 away and earn no interest for the chance of overnight riches. Based on market research on countries with similar low interest rate offerings, the Million a Month account is a hybrid of other products and seeks to attract the small change from "bras, jars and mattresses", says Gusta Binikos, CEO for the scheme.

With a take-up of more than 1000 new accounts a day, according to Binikos, the market response has been overwhelming and FNB is saving itself a veritable fortune in interest outflows each month, as well as encouraging the nation to save. And the outcome is a brand that offers something closer to that market’s perception of money and increases its customer base by creating one.

Becoming a global player

We anticipate a third phase across Africa's banking climate that will see both the acquisition of local financial institutions by international ones and local brands that have successfully built up brand equity expanding into new territories.

Increasingly, forward-looking banks will aspire to broaden their reach into new and different markets and will need to up their game – and their brand positioning tier – in order to function there. Otherwise, what has typically happened is that banks that move beyond their home border to set up shop in other more developed markets will only attract expat customers now residing in this new area – customers that can relate to the homegrown offering – while failing to attract the new.

Those brands that have the foresight to develop an internationally credible brand that retains the heritage of its origins will endure.

Beauty is in the eye of the beer-holder

Thu, 01 Mar 2007 02:26:57 GMT

Packaging is not confined to the no-nonsense wrapping of products these days; it can be a valuable tool to raise the brand's status, says Anthony Swart, CEO of The Brand Union, Africa.

While ten years ago, the average beer drinker might've smirked at the suggestion of a beer bottle — and even possibly the beer drinker themselves — being anything pretty or beautiful, far more attention is being paid to grooming the beer category these days as the worldwide trend towards premium becomes more mainstream.

Design doyennes like Philippe Starck have lent their talents and their design pencils to the alcoholic beverages industry, notably illustrated by Kronenbourg's 1664 who enlisted world-class designers to create a range of their limited-edition containers, aligning elegance and the aesthetic with everyday consumption.

The appreciation that packaging is no longer limited to practical wrapping but can be a tool to elevate the brand status — a concept long appreciated by the cosmetics industry — is steadily seeping into the beer category, innovating form and function.

As the world's most popular alcoholic beverage seeks to elevate its status, it's taking design lessons from cosmetics and perfumes, among other categories, which arguably defined the concept of premium with the focus on what makes consumers feel special, rewarded and individual. The premium niche used to be reserved for an elite few; now 'mass exclusivity' is what everyone wants.

And with the rise in premium brands in the beer category, there is increased focus on what it is that makes a brand stand out from its contemporaries and what will inspire and intrigue buyers. Recognising the 'power of premium,' the beer category is tapping into techniques and tricks from a number of other categories to change consumer behaviour and encourage 'shelf grab' and experimentation.

For example, beer brands are drawing inspiration from key competitor categories: wine and champagne. Like wine, beer is increasingly being appreciated for its complexities of flavour, ingredients, its origin and heritage, and its role in enhancing food flavours. Beer packaging designers are now moving in on wine’s traditional authority in the area of elegance, and champagne cues are informing design in thin, flute-like beer glasses. Some beers are also only sold in upper-end restaurants, rubbing shoulders with the Möets and the Veuve Cliquots on the wine list.

Peroni

Elegantly slim, sophisticated and premium-pitched, Peroni has captured the imagination of the local market place with its Italian sophistication, attention to detail and style. It is the Ferrari of beer. While Peroni may not have pushed the boundaries of innovation, it's an excellent example of how packaging is a key contributor in its positioning in the 'premium' category. This Italian beer brand in the stable of SABMiller has successfully used a number of premium cues that support and extend into a well-executed communications campaign.

Since its acquisition of Birra Peroni, SABMiller's key focus has been on exploiting the full potential of the brand by launching it in key markets around the world, with the ambition of making it their largest international premium brand. Touted as Italian style in a bottle, Peroni captures 'the spirit of Italianness.' When it comes to self expression, effortless style and flair, arguably nobody does it better than the Italians. Italy is renowned as the style capital of the world and Peroni aspires to rank its brand alongside style icons Armani, Gucci, Prada and D&G. This foresight will allow the beer brand out-of-category line extension down the line.

The London office of leading brand consultancy The Brand Union was enlisted to overhaul the beer’s image and identity. A distinctive and compelling positioning was created for Peroni Nastro Azzurro to appeal to their core consumers, beginning with the unmistakably Italian character of the beer. New brand communication, promotion, point of purchase and — specifically — primary packaging design, were all reassessed to maximize the brand’s full potential.

Historically, the look and feel of the primary pack and identity — a red brand signature on a white canvas and the classic blue ribbon (nastro azzurro in Italian) — was rich in Italian cues. The new design solution retains the timeless classic elements of the original label but gives them a fresh, contemporary feel, supporting the brand’s premium, prestige status. In addition, the classic green bottle was given a longer, sleeker neck for a cool and stylish look, its increased length elevating it above its contemporaries on the bar shelf.

Peroni's considered packaging livery includes a fresh, clean white background canvas, red brand signature that is rich and striking, embossing on both the bottles and cans to extend the brand experience through the tactile, and the use of silver on an asymmetric neck helps signal refreshment.

And these days, the packaging of Peroni is likely to include a set of highly manicured nails wrapped around its slender neck as the growing number of women find favour with the stylish brand.

Previously overlooked, designers are now breathing new life into secondary packaging. As there is a trend towards at-home entertaining and the 'big night in,' designers have crafted convenient, carry-home devices that live comfortably in space-constrained fridges, and are an additional branding opportunity. Peroni has put together a three-pack that is specially designed to live in a fridge door compartment in recognition of the practical requirements of its consumers.

The new world-class packaging design works in tandem with a distinctive above-the-line communications campaign that plays a vital role in SABMiller's ambition to deliver the coolest beer brand in the world. Peroni pays homage to some of Italy's most stylish creations, notably executed in its advertisement campaigns that celebrate timeless Italian chic and la dolce vita.

Peroni's customers are comparatively demanding, therefore the brand will need to keep innovating and aware of what’s premium, a lesson other premium beer brands will need to pay heed to. But what is evident is that beer brands are increasingly using design and innovation, enabled by technological advances in material and packaging, to surprise and delight their ever-increasingly style-savvy consumer.

A 'Greenprint' for companies and their brands – how true, how compelling?

Wed, 03 Jan 2007 02:26:56 GMT

As the 'sustainable' agenda grows in strength, companies need to ensure they get the balance right between promoting a green stance and being true to what they say.

We have entered 2007 with few doubts being expressed any more about the harm we have inflicted – and continue to inflict - on our natural environment. The recent Stern Review gives us a clear base from which to move forward - on current trends, average global temperatures will rise by 2-3 degrees over the next 50 years, high enough to see significant effects on economic and social systems. The economic cost is thought to be about 1% of global GDP, but Stern warns that the cost could be much higher if we do not begin to act seriously now. We need to stop, think and change the way we do things.

Which are the parties that can help to effect this change?

Governments, international economic/political organisations, campaigning organisations and individuals all have a role to play. For example, in the Queen’s Speech last November, the Climate Bill was announced – this will make the UK government’s long-term goal of a 60% reduction in CO2 emissions by 2050 a legally binding target.

Informed individuals are, quietly and gradually, starting to make the small changes that add up to greater effects. In the UK for example, within six months of the launch of 'Recycle Now', WRAP's (Waste & Resources Action Programme) national recycling campaign for England, the number of people classified as committed recyclers had risen from 45% to 50%. Today, nine out of ten people in England and Wales would recycle more if it was made easier for them.

The influence of many other 'campaigning' organisations such as WRAP is on the rise, including the Carbon Trust, The Climate Group and the Soil Association. The Carbon Trust's new advertising campaign launched last November encouraged businesses to take action to lower carbon emissions – it had three core messages: how lower carbon emissions can help businesses strengthen their brand value, attract talent and compete more effectively.

And the Executive Secretary of the UN Framework Convention on Climate Change pointed out, on 16th January, that of the 100 most powerful economies, 52 are companies, not countries, and that the importance of partnership with business was essential – governments could not expect to design solutions to climate change on their own.

Business has a major role to play

Clearly, the business community has a significant role to play. Its inherent power can be used to make a significant contribution to the solution, or more accurately, range of solutions we need to find. And this should not be regarded as philanthropic work. According to the Co-operative Bank's 'Ethical Consumerism Report' 2006, the UK market for ethical goods was worth £29.3billion in 2005, up 11% on the year before. This now exceeds total retail sales on cigarettes and alcohol in the UK. Two-thirds of UK consumers are more likely to purchase products from a company seen as taking action to tackle climate change. Consumer attitudes are facing a 'tipping point' in relation to a range of sustainability issues.

'New' companies are coming into being with the specific remit to be part of the solution. Interesting recent examples include Belu, makers of bottled water in the very first compostable bottles (made from corn!) and Innocent, the smoothies makers, who state their commercial decisions are always guided by sustainability considerations.

There are also signs that businesses are starting to come together to find new solutions. The CEOs of Starbucks, O2, Marks & Spencer, Tesco, Carphone Warehouse, BSkyB, HSBC, Man Investments and B&Q met Tony Blair and Secretary of State for the Environment David Miliband in December last year for talks on forming a partnership to cut carbon emissions. Together, they have more than 250m customers and 30,000 retail outlets. The scheme, being coordinated by The Climate Group, is due to be launched in March, and will set targets for a reduction in emissions not only by the companies themselves but also by their customers. And the CBI held its first meeting of the CBI Climate Change Task Force on January 11th, chaired by BT Chief Executive, Ben Verwaayen – it includes, amongst others, the heads of Barclays, McKinsey, BP, the London Stock Exchange and BA, and is tasked with establishing the role business can play in tackling climate change.

But who can consumers trust?

Momentum is building. But, the question that consumers are increasingly asking in this debate is 'who can we trust'? Who is acting in a sustainable way and who is just claiming to – simply applying 'greenwash'? Which are the brands that people can really believe in?

The Brand Union embraces a core philosophy that companies and their brands need to be both True and Compelling. To succeed, they have to speak truthfully about their beliefs and activities, and be compelling in the way they describe them. This is of particular importance in the sustainability arena. For the companies and brands which hope to survive and be successful in the future, the big question that will be asked of them is 'Are you sincere in your stated sustainability claims, and how well are you using real changes in attitude and actions to forge a new competitive advantage?' How truthful and how compelling?

Some companies have always held the high ground in the sustainability stakes. Cadbury's Bourneville Village in the late 19th century embraced the building of a factory in a pleasant 'green' environment, enhancing overall quality of life. The Co-op, founded on 'co-operative' principles, was the first UK supermarket to ban animal testing on own-branded toiletries nearly 20 years ago, the Co-op Bank was the first to launch an ethical policy and they are a leader in 'fair-traded' products. The Body Shop, established in 1976, has always supported a range of sustainable initiatives, many related to animal rights and testing.

More recently, things have begun to really hot up, but the landscape is becoming more diverse and difficult to navigate.

Some early examples of the rise of the modern sustainability movement’ 'include companies associated with the Fair Trade movement, such as CafeDirect, founded in 1991. BP was forming a new view of the world in the mid-1990s with its 'Positive Energy' concept, revolutionary for a 'planet-polluting' oil company. BP's ULTIMATE Fuels range and their 'Alternative Energy' initiative are evidence of their commitment to a more 'sustainable' future, though they are still seeking approval to further oil drilling ventures in the Arctic National Wildlife Refuge, despite warnings of an ensuing natural disaster.

And we are seeing other significant changes in business behaviour – for example, companies changing product formulations in response to the growing backlash against fatty, sugary and salt-laden products. We are also seeing more 'low emission behaviour' - travel companies in particular have delivered carbon-offsetting schemes.

For others, the story is far less positive.

ExxonMobil's stance over recent years has been that the evidence for climate change is inconclusive. Shades of the cigarette companies throughout much of the latter half of the twentieth century?

McDonalds have discovered that drive-thrus are a huge success in China. They are so pleased with the results that half of their new restaurants there are to follow this format.in a country with a growing environmental problem and a car market already growing at 25% per annum.

True and Compelling in practice

Two great examples of businesses that are succeeding in being both true and compelling in their sustainability offers are The Grameen Bank and Marks & Spencer.

Muhammad Yunus, from Bangladesh, founded The Grameen Bank three decades ago. The bank was a pioneer in micro-credit - small loans given to people with no security to help them work their way out of poverty. It has been a liberating force for the five million borrowers to date - especially for women, often living in repressive social and economic conditions. Revolutionary. Compelling. True.

Another great example is M&S and their 'Look Behind the Label' campaign - a direct response to research that told them their customers wanted to know more about their ethical standards. They include salt reduction in foods (20% over the last year), sustainable fishing, Fairtrade coffee shops and clothing and animal welfare – eg. they were the first major UK food retailer to sell and use only 100% free range eggs. A recent Citigroup report said this had been a major success for M&S – overall sales were up 10.5% on the previous quarter and this campaign is credited with playing a strong role in this increase. Continuing their leadership stance on sustainability, M&S announced on 15th January that they are targeting to become carbon neutral by 2012.

Four key pointers for future success

Given this growing evidence, 2007 seems likely to become a turning point for the global sustainability 'movement' - particularly amongst the business community.

At this time of fresh thinking and new solutions, we would like to suggest four key pointers for companies and their brands who genuinely want to be seen as examples of sustainable business success.

Companies and/or their brands must ensure that 'sustainable' policies and action plans are at the heart of their businesses. Those who move soonest will gain the greatest competitive advantage.
Finding compelling ways to promote these aspects of the way they operate as a business should become an increasingly important part of their marketing and promotional strategy.
But…they will need to be rigorous about what they claim is true – no greenwash! Those who aren't will be found out, and it will be worse for their business than if they had done nothing at all.
Sustainability is about finding solutions that are both environmentally and economically sound – and about the rediscovery of the social contribution businesses can make. Cadbury and others knew this over 150 years ago. It is about business people rediscovering their wider role in society – way beyond philanthropy and self-promotion. It is about business asserting its potentially positive role on the development of our society.

This can be a win-win situation for all of us. There is no single magical solution, but a range of solutions each of which will feed into or support each other.

What is clear is that the business community needs to take an extremely active role. But businesses need to be true to what they say, and compelling in their sustainability claims, to gain significant competitive advantage. There can be little question that those that achieve this will be amongst the great business success stories of the future.

Tuning in to Tone

Wed, 03 Jan 2007 02:26:49 GMT

A brand’s identity, or the face it presents to the world, is more than logos and names. It’s also how the company speaks and what it says. At the base level, this communication should position the brand uniquely and consistently across all touch points. Most companies seek to create this integration, first, via a visual system that expresses the brand through color, images, logo treatment, texture and beyond. But truly bringing a brand to life requires not only a unique visual system, but also a written and spoken voice that is a reflection of the brand.

“Branded language” isn’t just the development of names, strap lines or messaging, although it works with all of those. Branded language allows a brand to express its personality through a distinct tone of voice, manner, structure and vocabulary system. Like design, branded language takes its cues from brand positioning to ensure that the communication expresses the truth of the brand. Some brands choose to make their language highly noticeable in this way, while others count it as a success that their language simply fits the brand.

The benefit of branded language is not only consistency, but the fact that it also permits a wider scope for creative expression to reflect a brand. For example, Richard Branson’s Virgin is always irreverent and fun. This sensibility doesn’t just come from the visual identity; the brand uses language to convey these values.

Since the sale of its record label, the company’s largest American business may be its airline, Virgin Atlantic. When you fly Virgin, you’re part of a club — a flying nightclub with a language conveying a certain friendly exclusivity. A passenger who visits the Web site is often greeted with “Hello, Gorgeous,” while the frequent flyer program, “Flying Club,” provides “irresistible offers” and the company’s first-class cabin, “Upper Class,” allows for “drive-thru check-in so you can bypass the terminal and head straight for the Clubhouse.”

Sure, Virgin is an unusual brand with an unusual leader who encourages pushing the envelope. But as this example shows, branded language is not limited to consumer companies having some fun. Business-to-business companies and more conservative consumer brands can express themselves through branded language. If a brand doesn’t pay attention to the language in all of its communications, at best it could be missing an opportunity to use language as a consistent, creative expression of the brand. At worst, inconsistent language can sabotage public perception of the brand.

To achieve consistent creativity in communications, a branded language program establishes the language personality of the brand. The process to develop branded language begins with an audit to understand a brand’s current communications and its positioning. This step reveals what a brand needs to say, to whom and through which modes of communication. The next step focuses on the positioning and characteristics that drive and differentiate a brand.

The findings can then be used when rewriting communications materials. The new, revised copy can be tested internally and externally, both to find out whether it expresses the brand clearly and whether users like it. Once vetted, the brand language is then captured as guidelines, on paper or electronically. Training — to make sure all the relevant communicators, from copywriters to speakers to customer service reps, know how to express the brand consistently — is the final step.

Ideally, branded language should deliver a structure that frees writers to be creative, while providing enough constraint to make sure that nothing off-brand gets through. And often, that’s a case of working closely with companies and their writers. Sometimes, this collaboration results in additions and changes to the guidelines to capture what is discovered on applying the brand’s language in new areas. If the process seems odd, remember it’s analogous to what happens with visual design.

We’re used to accepting that strong brands consider color, images and typography when communicating their message graphically. Today, strong brands also consider not just what they’re going to say, but how to say it. A distinct tone and vocabulary allows a brand to express its personality.

Brand-Bonding Drives Desire

Wed, 03 Jan 2007 02:26:47 GMT

Shopping and logical thought are often worlds apart. Why do we buy the car we do? Not because it gets the best gas mileage or because it’s the best deal. We buy it because we want it. It’s about pure desire, rationalized either before or after purchase.

Recently I heard Don Diforio, senior vice president of research for the Advertising Research Foundation, speak at Columbia University about the new neuropsychological theories that are replacing the old consumer beliefs. No longer is it believed that consumers think, feel, do, or follow AIDA (awareness, interest, desire, action) buying patterns. Rather, according to those who look inside the brain to study the connection between physiology and psychological responses, we are all driven first by emotion. This emotional connection leads to brand desire, which ultimately leads to demand. Granted, convenience factors and rational concerns play a part in the decision making process, but it is a feeling that acts as the initial spark of interest. Given the masses of information that we keep in our brains, we all still act based on primitive, emotional instincts. It seems we’re just cavemen with cars after all.

I had what Oprah calls an “Aha moment.” When I’d first learned of AIDA, I thought about my brother-in Billy. The model didn’t seem to apply to his “buy now, explain later” purchasing process. When he sees something he wants, he gets it. It can be a car, a pair of sneakers, or Swedish fish. He can provide you with an exhaustive litany of reasons for his purchase of a BMW: “You can’t drive clients around in a crap car.” “It handles well.” “It’s a sports-car-in-a-sedan package.” The truth is, Billy buys into the brand – the lifestyle surrounding BMW. In his mind, it equals success.

This “feel first, think later” advertising model is in line with theories surrounding brands. We as brand marketers and those who work with us believe that brands are simply the established meaning or reputation of a product or service within the minds – and hearts – of consumers. These brands then have values, ideas, and feelings attached to them that allow consumers to make unique emotional connections with them. This is why the Prius brand equates to cool hybrid, green, environmental awareness and BMW equates to success and a sports car in a luxury package.

Given this new model, the role of brand in marketing becomes even more important. As Diforio pointed out in his recent lecture, the goal of advertising is moving from “creating brand awareness” to creating brand demand.” Not only do consumers need to know about your brand, they need to want your brand. To create this demand, consumers need to attach value to a brand that not only is unique but also motivates them on an emotional or instinctive level.

Now that we know that consumers behave emotionally – at any price point – it is our job to build brands that are differentiated and connect to the target market emotionally first. As Diforio put it, “Emotion involves and motivates and can transfer positive perceptions to the brand.”

At The Brand Union, we believe that this connection is made when a brand is built on a “compelling truth.” To get to this, we first assess the company, product, competitors, and the market. These elements are analyzed to deliver a basis that is powerful, actionable, and appealing to the brand’s target audience. The compelling truth is transformational, ideally creating emotional preference and differentiation.

When a brand’s compelling truth is delivered consistently across the customer experience, it drives emotion and breeds motivation.

Let’s not forget about Billy. His life has changed since he first started driving BMWs. He has a beautiful daughter, Elizabeth, and another little on the way. He’s now driving the car that fits his new desires and lifestyle. Want to guess what we recently found in his driveway? That’s right, he’s driving the quintessential family car – a Volvo.

The Brand Union

Building a trusted brand in China

Fine Tune Your Research

Picking the wrong fight

Focus group monomania

Loving the numbers too much

Misrepresenting results

Green brands get the green light

South Africa: Are you ready?

Sowing the seeds of change:

Why bother?

Reputational buffer:

Survival:

rust in ‘natural’:

New markets:

Authenticity and trust

Going green can’t just be a smokescreen

Product attributes:

Product benefits:

Values:

Educate and empower:

Transparency:

Price:

Cross-over opportunities:

Shelf stand-out:

Connectivity:

Change now

About the author

What brand is your passport?

Branding Africa

From the inside out

Changing perceptions

About the author

Symbolism's power across different markets

Subjectivity

Time decides

Finding the way to a successful brand experience

Is getting lost ever a pleasure or is it always a problem?

How do people find their way?

Is wayfinding really part of branding?

We all know first impressions count

Positive second impressions

What do consumers want?

Do all buildings need signs?

Branded waypoints

How do people use signs?

Why signs don’t work

Making signs work

Making logos work on signs

Pushing the sign design boundaries

The Role of HR in Brand Building

Building Reputations on a Proven Platform

Strong economy

IP confidence

Building brands you can bank on

The ground work for trust

Developing brands in developing markets

Evolve your positioning as your customer needs evolve

Relevant to your customers

The Compelling Truth

Adopt a local approach

Becoming a global player

Beauty is in the eye of the beer-holder

Peroni

A 'Greenprint' for companies and their brands – how true, how compelling?

Which are the parties that can help to effect this change?

Business has a major role to play

But who can consumers trust?

True and Compelling in practice

Four key pointers for future success

Tuning in to Tone

Brand-Bonding Drives Desire