Brand activation

2009-04-08T08:51:00.000-07:00

Brand activation

A relatively new "term" in the industry, there is much debate around the exact definition of Brand Activation. It's pretty simple really; it's all about bringing the spirit of brands to life. The objective of Brand Activation is to make brands active in their markets, building their reputations along with results.

The basic Brand Activation principles are:

Winning attention and involvement

Bringing the sprit of the brand to life in a distinctive way

Delivering ideas that genuinely motivate consumers

Creating ideas that are accountable and deliver

Brand Activation: Bringing Your Brand To Life

2009-04-08T08:43:00.001-07:00

Brand Activation: Bringing Your Brand To Life
Filed under: Uncategorized — MP @ 11:07 am
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Marketing, as we know, is all about waging war against competitive forces to win market share. For this purpose, marketers create warriors which win the perceptual battle for them, and these warriors are called BRANDS. Brands have proved their worth by earning premiums, decimating competitions and even beating time factors (as many brands are still leader as they were a century ago). Owing to this, marketers have stepped up their efforts to build their brands. They are building their marketing programs around their brands.Today, marketplace is replete with competition. Opening up of economy has led to the entry of foreign brands into the marketplace. These brands are also adding to the chorus. Advertising has always been seen as main weapon to build brands by the brand managers. Excessive reliance on this form of communication has resulted in “over communication”. Ad clutter has been increasing gradually and the future shows no sign of relief. Not only has this, advertising also lost its credibility if we compare it to what it used to be decade back. Reasons are many: More knowledgeable customer, comparative advertising, internet etc.Therefore, marketers are exploring new ways of supporting their brand. One such method is called Brand Activation. Brand activation can be defined as marketing process of bringing a brand to life through creating brand experience.Next question now is what to activate? Generally, the core features or brand values of a brand are used for activation. That’s what every brand manager strives to achieve i.e. communicating their brand values to their target customers. But a word of caution here: select only one or two features or brand values to activate. Don’t try to communicate each and every detail of your brand. One has to appreciate the fact that branding is based on the concept of singularity.This concept assumes a greater significance in case of services which are intangible in nature. Let me take example for both products and services to explain brand activation.

B.A. In Products:

Consider a hypothetical shaver brand “X”. Further assume that there are six other brands in this category. All brands are touting themselves as provider of smooth shave in their respective ads. But you are the smoothest one but how do you make your T.A believe of the same. B.A comes handy in case scenario.Create such a platform, where you can meet your T.A and give them free shave so that the can feel the “smoothness”. Allow them to interact with your brands as much as possible. You can do so with the help of road shows and exhibitions etc. Once you have done that, customers will be able to validate your claim. Also, they will relate to your ads.

B.A in Services:

It’s the people in services which actually activate your brand. Consider the case of insurance company which claims to be most caring company. But the problem is that every company is saying that. The company (lets say) which reaches the place of accident, will be considered as most caring.

Benefits of Brand Activation:

1. You can convey your positioning using brand activation.

2. It supports your ad claim if used carefully.

3. Distortion is minimum in this case.

4. It increases your brand salience.

5. Helps in revitalizing a brand. Horlicks is doing it through its campaign which is trying to change its image from fuddy-duddy to an exciting brand among children. Their Wiz-Kid competition across the country is the perfect example of brand activation.

6. Brand activation can elicit customer insights as people interact with the brand.

Limitations of Brand Activation:

1. Lack of initiative on part of brand managers is the major concern.

2. Lack of measurement matrices or indices is the limiting factor.At the end, I would like to say that brand activation should not be confused with the below the line activities. Brand Activation is seen as a tool to build brands through interaction with its target people whereas below the line activities, most of the times, are sales oriented

Brand activation

2009-04-08T08:20:00.000-07:00

Brand activation

by: Paul Morel, Peter Preisler and Anders Nyström

Brand activation is not a theory; it is a natural step in the evolution of brands. This paper takes a deeper look into the possibilities within the brand, its’ strategy and position to find assets that can be relevant, adaptable and profitable for the entire company. Paul Morel, Peter Preisler and Anders Nyström are brandstrategists at the brand and design agency Starsky. The authors have gathered experience and knowledge about today’s brand environment both inside and outside companies. Brand activation is an expression of how they approach brand management within an organization.

From marketing brands to brand activation

As society moves into post modernism, new companies have evolved and older ones have reformed their businesses to meet the changing needs of people and companies. These companies have listened to their customers, and they have learned that, both as companies and as persons, we perceive ourselves as individuals with specific needs. The enlightened individual is the focal point in the postmodern society. As Robert Delamar states in his article “Post-modernism, electronic consciousness and humanness”: “Humanity is the center of the postmodern period; indeed it is helpful to characterize this age as the self centered era”.

Today, people are no longer a massive work force, or manipulated consumers. Each individual brings competence and ideas valuable for every kind of commercial business. We look upon ourselves as persons with individual values and preferential needs. An increasing number of industries have specialized in meeting the increased complexity of the individual needs. Staffing service, with companies such as Manpower, have flourished meeting the demands in a rapidly changing global business environment where flexibility is key to a lot of companies.

In the meantime, in the highly competitive business climate, developing and maintaining unique product features has become hard and costly. Technical progress does not necessarily assure commercial success or sustainable competitive advantages. Products are becoming more and more like commodities.

According to Naomi Klein, author of the much debated book “No Logo”, leading companies like Nike, Microsoft and Tommy Hilfiger put brands before products claiming that they no longer produce things, but images of their brand. Companies also turn to services to differentiate themselves in the customer relation. Financial institutes such as banks have abandoned their diversified strategy with a wide range of products and services, where each individual service had its’ own selling point. Instead, they reform their relations to their customer by bundling different services and offering financial planning.

This strategy is not based on a specific product portfolio; rather it reflects a deeper

understanding of the customers as individuals. One of the basic ideas behind financial planning is to understand the individuals’ financial situation, behavior and needs in order to cater specific services and products. It’s worth to mention here, that these new services are not just meant as a new source of income, but also serve as a key differentiating feature. The American airline Southwest Airlines distinguish themselves from other airlines by having singing flight attendants onboard. “The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride andCompany Spirit.”

Not surprisingly they call it service.

Companies desire a stronger relationship with their customers, making it harder to exchange the products for other offers, both on a functional and on an emotional level. In this highly competitive and individual world companies are increasingly depending on the brand as a competitive weapon. The brand has become the carrier of the emotional value proposition towards the customers and a symbol of the specific competence that builds up a company’s competitive advantage. Thus the brand faces new challenges in giving meaning to a company’s whole relationship with the customer.

Traditionally, branding has been a marketing communication tool, a visual and verbal weapon owned by marketers and marketing consultants. In order to earn trust and loyalty from the postmodern customer, it is time for the rest of the company to take benefit of the assets embodied in the brand. Demystify the brand Since branding in most cases is driven from a communication perspective, branding and competence about branding is still owned and guarded bymarketing directors and advertising agencies.

Today a person meets in general 30 000 messages per day, of which 3000 are branded in some way. Brand strategies have evolved into complex theories predominantly driven by the communication environment. According to David C.Court,Mark G. Leiter and Mark A. Loch, brands do “work” for the customers. In their paper “Brand leverage” they explain why: “they simplify everyday choices (a shopper who regularly buys Crest doesn’t have to agonize continually over toothpaste), reduce the risk of complicated buying decisions (IBM mainframes and Boeing jets are safe choices), provide emotional benefits (Tiffany), and offer a sense of community (Apple Computer and Saturn)”. Besides the reasons mentioned by Court et al, we believe that there are two other reasons why brands work, especiallyfor the service industry. First of all they work if they create relationship benefits (the experience of being known by your banker or a car salesman). Second, brand works if they create accessibility (when services are accessible for me 24/7).

Marketers have been eager and successful in developing and exploring the brand as an asset for communication during the 80’s and 90’s. Other organizational competencies have much to learn from marketers when it comes to adapting and exploring the brand for their specific purposes. The brand faces new challenges in giving meaning to a company’s whole relationshipwith the customer. By demystifying the brand companies can make the brandcommon knowldege amongtheir employees.Page 4

As consumers are getting more selective towards brands and products, seeing themselves as individuals with strong values and preferences, companies that don’t live up to communication promises will rapidly disappear from the consumers mind. This means that companies cannot afford not to meet expectations set by the marketing communication. Therefore, companies would be wice to take control of their brand management, and apply it to areas beside the pure marketing function, instead of putting it in the hands of marketing consultants. We mean that the brand can be activated in all customer relations, such as the helpdesk, in the telephone, in the product or in the design, etc. To be able to do that, it’s time to demystify the brand. It’s time to make the brand a common knowledge among all employees; so that it can be a source for innovation and new ideas among all competencies within the companys’ organization.

What is brand activation? Brand activation is not a theory; it’s a natural step in the evolution of brands. We belive when all the necessary brand strategies are implemented, companies just need to execute them across the organizationand in the total offer towards the customer. Brand activation is looking deeper into the possibilities within the brand, its strategy and position to find assets that have relevant consequences for the whole company.

A brand can be activated in a range of situations, best summarized in four cornerstones; Products and services, Employees, Identity and Communication. An active brand offers products and services that deliver on the brand position. It meets the customer in a personal manner closely related to the position. It also has the same appearance independent of interface.

In other words, the customer will perceive the brand as “one coherent company” whether he or she meets it in digital or analog media, through a product, face to face or on the telephone. But brand activation is also communicating the position through advertising.

What to activate?When activating a brand, look for the core features that constitute the brand. It might be the communicated position or promised customer benefit, or the company vision or people policy – strategies and tactics that often are relevant for the whole company. Therefore, effective brand activation starts with a defined brand.

Brand position is a common definition in these circumstances. Al Ries and Jack Trout first defined the term in their book “Positioning”. Ries and Trout describe the marketing opportunities of conquering a specific position in the mind of the target audience. This position must have strategic advantages towards competitors to be profitable.

One example that supports their reasoning is Avis, the car rental company. Avis admitted that Hertz was the first car rental brand in the world. Acknowledging this Avis explored the opportunities and competitive advantages of being second. The result was: “Avis, we try harder”. By positioning the brand as the second brand in the car rental market, Avis gave meaning to why they had to work harder than its’ worst competitor to please their customers.

Another example is Apple. Apple was first among the computer manufacturers to conquer an obvious position: the position as the different computer company. “Think different”, gave meaning to the bite in the apple; to the different operative system and, later on, the different approach to product design.

Another theory is developed by David A. Aaker published in his book

“Building Strong Brands”. Aaker’s Brand Identity System describes the brand position like this: “Brand position is the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands”.

Aaker describes the identity system itself as the core identity and the extended core built by products, organization, personality and symbols. In this paper we will simply use the term Brand since constituents may vary depending on which branding theory and strategy used.

Where to start ? We see the brand position in Aaker’s model as a tactical asset when communicating especially the core identity. Thus the brand position can change focus without interfering with the core identity. While Aaker identifies competitive communication strategies from a perfectly working identity system, we search for ways to look deeper into the parts that buildup the system. We also look for ways to let the brand make a positive impact on these areas. Though there are obvious similarities between Aaker’s Brand Identity System and the four cornerstones; Products and Services, Employees, Identity and Communication – there are differences.

The four described cornerstones are not defined from a communications perspective, i.e. we do not try to find values in these areas worth communicating because they strengthen the identified core identity. Instead, we search for solutions where the brand can support, guide and innovate the company in these four areas. The point is to help companies become a coherent brand whatever situation or customer relation. Search for solutions where the brand can support, guide and innovate them.

When exploring the brand for activation, search for answers to how the brand can be relevant, adaptable and profitable for the four areas, respectively. There is also an opportunity to add a fourth question; how is this measurable? Though there are numerous well-developed theories and methods for measuring the brand, we choose not to explore this question

further in this paper. But we do want to stress that measurement tools and methods are important indicators of the effects of brand activation efforts. The questions mentioned – if the brand can be relevant, adaptable and profitable - are not intended to question the validity of a brand. Instead, they shall explore the opportunities within the brand that can have relevant

and meaningful consequences for the four areas. In other words: there must exist a strategic brand work as platform for brand activation efforts.

To further explain what we mean by brand activation, we adapt the three questions to two of the cornerstones: Employees and Products and services. We will use showcases to make it more understandable.

Employees

Since employees are one of the most important carriers of a brand, you might ask yourself; how do companies give employees inspiration, education and tools to perform on the expectations created by marketing promises?

How is the position relevant?

McDonald's vision is to be the world's best quick service restaurant experience. The mission is to get the customer satisfied as fast as possible – and to leave just as fast with a happy face. On the corporate homepage, McDonald’s states: “This means providing outstanding quality, service, cleanliness and value, so that we make every customer in every restaurant smile”. The question to ask here is: how can the company mission be relevant to low paid staff in the fast food industry? And what makes people smile in a fast food restaurant?

How is the position adaptable?

The Scandinavian airline, SAS, has chosen to let the company’s

Scandinavian heritage form the foundation for its’ brand. The company

describes the typical Scandinavian character as “informal and unpre-

tentious, straightforward and honest, modest and with a lighthearted glint

in the eye”. The challenge is to define how the brand position “It’s

Scandinavian” can help flight attendants understand how to meet their

passengers. What inspirational guidelines can every employee agree upon,

when breaking down the brand into behavior and attitude?

In some companies, the brand may not be stated or articulated in a way

that easily translates into personal behavior, attitude or mission etc. For

example, how is the mission adaptable to employees at the petrol

company Statoil? At the corporate homepage, Statoil states: “The mission

is to make our customer’s every day life easier through personal service,

care and quality, and through attractive locations and opening hours make

it possible for the customer to shop more from one same place”.

Considering this, as an employee at a Statoil service location you had

better be prepared to serve the customer with a lot more than filling cars

with petrol. What can you as an employee at a petrol station do to make

people’s life easier?

How is the position profitable?

How can the brand be profitable for the employees, given the fact that it’s

profitable for the company? Does it increase their salary or in other ways

add to their personal well being, i.e. by making the workplace a meaningful

or joyful part of life?Page 8

Brand activation _ 8

The American luxury department store Nordstrom declares that “no

customer should leave the department store without being satisfied and

happy”. Nordstrom also has identified the people closest to the customer

as the most important employees since they have best opportunities to

effectively satisfy the customer. Therefore there is only one company rule;

“Rule # 1. Use your good judgment in all situations. There will be no

additional rules”. At Nordstrom, no employee has to seek their boss to

make decisions regarding customers. In the realization of the declaration,

employees are offered a lucrative commission and bonus deal making it

possible to earn more than you would in the assembly room. Leslie

Kaufman a stars salesman at Nordstrom says; “If I was paid by the hour I

wouldn’t be as motivated as I am. Since I know about the commission I

get a completely different driving force at work. The more I sell the better

for me and for Nordstrom”.

Southwest Airlines promise that they will entertain everybody during the

flight, because they love what they are doing. So, the flight attendant at

Southwest Airlines grabs the microphone to give the obligatory safety

precautions – but today she is rapping; “Federal regulations says you must

comply/If you don’t you can kiss seatmate goodbye/Chhhh-ch-ch-ch-ch-

Ch-ch-ch-ch…”. Now, what makes her rap? Kathy Pettit, Director of

Customer says; “Make the working place the most fun place to be at”, and

explains, “Skip uniforms and formalities. Have lots of competitions, cele-

brate as often as possible and encourage practical jokes and pranks. Let

prices rain over the employees but never give money – let it be t-shirts or

things as access to the best parking spot for a week”. Pettit continues;

“You will be surprised of how much people (employees and customers) are

willing to give when they feel loved and acknowledged”.

Products and services

How do we activate the brand through products and services? And how

do we make sure that products and services live up to advertising

promises? By aligning these questions, emotional preferences can be

attached differing products with similar functional attributes. McKinsey

Quarterly, 2002 nr 1 captures this in their article about “Revving up auto

branding”. GM and Toyota build two more or less identical cars (the Toyota

Corolla and the Chevrolet Prizm), both models designed by Toyota in their

joint venture plant in California. The models have similar functional benefits

and both models score high in consumer reports. Yet, selling the Chevrolet

Prizm requires $750 more in buyer incentives, only one-quarter as many

Prizm are sold, and their trade-in value depreciates much more quickly.

Emotional preferences

differ products with similar

functional attributes.Page 9

Brand activation _ 9

How is the position relevant?

An Apple computer doesn’t offer a unique functional benefit that cannot

be offered by other computer companies. Still, “Think Different” casts new

light on the purpose and perceived benefit of Apple computers and

computer accessories. The company’s mission is to deliver high quality

computing products with a different experience. Apple is a great example

on how the brand can alter the way consumers look at benefits on

commodity products.

How is the position adaptable?

How do you make products state the brand? In the insurance industry,

it’s sometimes hard to tell one brand from the other just by reading the

product and service offer – with one exception. The insurance company

Progressive decided to restructure their auto insurance offer to deliver on

the promise of customer service. Instead of having in-house represen-

tatives, Progressive took their brand promise to the extreme and put

claims representatives in Immediate Response Vehicles that could come

right to the scene of an accident. In doing so, Progressive clearly

demonstrates how the brand can cast new light on the total customer offer.

How is the position profitable?

Increased profits are one of the major drivers of change and development.

Perceiving profit as growth in sales figures or in number of items, exploring

the brand unravels new opportunities for sustainable growth. To leverage

this driving force, the company might have to adopt a more holistic

perspective than previously.

Progressive has since 1990 grown to be the fourth largest insurance

company in the United States. To achieve this, the company went through

an extensive reformation, restructuring their total product offer on a long-

term basis.

The Progressive case shows that brand activation efforts can ignite a total

reconstruction of the product offer or reveal new opportunities for specific

products. Naturally, brand activation may also result in less revolutionary

measures, like sale support or development of new products. During the

process, opportunities to expand your category, or to move into closely

related ones, can appear. Gillette expanded the razor category to include

shaving gel and other skin lotion products. Disney is focused to entertain

all living ages, but their offer is diversified into a variety of product categories.Page 10

Brand activation _ 10

Finally, why do we need

active brands?

In today’s postmodern society, merely offering supreme product features

on a functional or emotional level is not sufficient. While the basic idea

about active brands is to execute the brand in other terms than marketing,

the real value lies in the opportunities it creates. Most fundamentally, brand

activation contributes in creating trust between the customer, the society

and the brand (i.e. company). And trust is one of the key factors to create

loyalty between consumers and brands.

In return, companies can use the loyalty to create re-purchase behavior or

customer recommendation behaviors. Companies can also, according to

Court, Leiter and Loch, use customer loyalty to diversify or focus their

business. We do not look deeper into these strategies in this paper, but it

is worth mentioning that when a company relies on customer loyalty to

expand; the key challenge is always to retain the existing relation of trust

between the customer and the brand.

Summary

Branding is much more than advertising. The time has come for companies

to leverage the brand asset within the entire organization. The postmodern

individual demands that brands live up to their promises in every interaction

whether it is through products and services, employees, identity or

communication. A coherent brand in these four areas will gain trust and

loyalty with its customer enabling profitable relationships between brands

and people.