From the 2008 Digital Outlook Report from Avenue A Razorfish, Clark Kokich, CEO of Avenue A Razorfish stated,
"Consumers no longer move neatly from one touchpoint to the next, from branding to promotion to sales".
It is true, consumers no longer move neatly from one touchpoint to the next. Instead, they dabble on all sorts of digital content in the pre-purchase dreaming process, or even share experiences after a brand experience. Consumers share ideas about products, brands, and experiences through peer-generated blogs in an uncontrolled environment. Companies may feel threatened by "the rise of the user-generation", but the idea of consumer is king is not new. It's just now it has become more of a reality than before.
Consumers are becoming smarter than before. With accessible information they can get online, they have become more price-conscience than ever. This does not mean that consumers are only price-driven and not brand driven, they still choose their "lovemark" brands, but as a smart shopper, who doesn't wanna save a buck or two?
My friends pay a visit to a boutique store to try on expensive designer jeans so they can figure out what exact size they need. Then they gather that information and search extensively for the cheapest price online.
I look at several websites on Friday afternoon to decide which place I will pick for dinner. Through researching online, I am able to find the place that fits my critera: romantic setting, private, low key, small restaurant, not too expensive, and very good food. And when it comes to what is yummy, it can be quite subjective, so I really have to read between the lines with people's comments, instead of skimming the surface.
Consumers research online and buy in stores. They shop in stores and buy online.
The internet really has shattered the entire concept of a linear purchase funnel.
So what are marketers to do? how do you find structure within this un-structured enviornment?
Sunday, March 9, 2008
Active thumbs, iykwim
iykwim = if you know what i mean...
It is said that for Millenniums, the most active finger is the thumb, rather than the index finger. Kids nowadays have developed active usage of their thumbs from text messaging. Imagine kids using their thumbs instead of their index finger to push doorbells, and to point directions.
There is this "Text Generation Gap", that even I have to catch up on! Text messaging has spawned an array of bewildering new acronyms and abbreviations. This is what I learned from today's New York Times Sunday business section:
afaik = as far as i know
ayt = are you there?
b4n = bye for now
cyr ma = call your mother
dk = don't know
em? = excuse me?
gal = get a life
iykwim = if you know what i mean
yt = you there?
ptb = please text back
It is said that for Millenniums, the most active finger is the thumb, rather than the index finger. Kids nowadays have developed active usage of their thumbs from text messaging. Imagine kids using their thumbs instead of their index finger to push doorbells, and to point directions.
There is this "Text Generation Gap", that even I have to catch up on! Text messaging has spawned an array of bewildering new acronyms and abbreviations. This is what I learned from today's New York Times Sunday business section:
afaik = as far as i know
ayt = are you there?
b4n = bye for now
cyr ma = call your mother
dk = don't know
em? = excuse me?
gal = get a life
iykwim = if you know what i mean
yt = you there?
ptb = please text back
Celebrity Endorsement ( but confused as brand extension)
I: Vera Wang by Serta
First comes love, they say, and then comes marriage. At Vera Wang, next comes lifestyle. Vera Wang’s latest brand extension, Vera Wang by Serta, is an extension from a usage context. Brides- to-be shopping for a bridal dress most likely will be looking into other newly-wed lifestyle products - a luxurious mattress. From previous brand extensions such as lingerie and flowers that were extensions from emotional benefits, to extensions into Wedgwood china and crystal - luxurious house-hold product gifts for newly-weds – are also brand extensions from usage context. While Vera Wang’s brand identity is premium quality, and wedding dresses’ imagery is related to love, the extended “love” is a happily married life, thus a premium quality mattresses/ bed that brings comfort and intimacy, a brand identity extension. Serta’s campaigns’ tagline, “Life is but a dream”, is actually a high-level driven benefit that is an emotional extension from the parent brand, because the target audience fantasize dream-like weddings and aspire to perfect marriage life. However, Vera Wang by Serta is a bit far-stretched from the core product brand. The core competency, product attributes and a functional benefit of a fashionable wedding gown is far from mattress and beds. There is also a great gap in the distribution channel, from boutiques in high-fashion districts to Serta stores. While the price of a Vera Wang by Serta mattress could be only one fourth of a Vera Wang wedding gown, the target audience for Vera Wang by Serta mattress could be those who aspire to have a Vera Wang wedding gown but are only able to afford a mattress designed and endorsed by Vera Wang. That said, the extension target is subtlety different from the parent brand, judging from the price, the distribution channel and the consumer attitude. Undoubtedly, this brand extension causes confusion to the consumer, and the price and distribution channel will deteriorate the parent brand image. However, a Vera Wang by Serta mattress is helping to expand the category. With Vera Wang’s endorsement, it has already created much buzz to create awareness for the luxury mattress category. While there wass not much product differentiation within mattresses and beds, Vera Wang by Serta creates a strong brand differentiation within the mattress category, which is beneficial to Serta.
First comes love, they say, and then comes marriage. At Vera Wang, next comes lifestyle. Vera Wang’s latest brand extension, Vera Wang by Serta, is an extension from a usage context. Brides- to-be shopping for a bridal dress most likely will be looking into other newly-wed lifestyle products - a luxurious mattress. From previous brand extensions such as lingerie and flowers that were extensions from emotional benefits, to extensions into Wedgwood china and crystal - luxurious house-hold product gifts for newly-weds – are also brand extensions from usage context. While Vera Wang’s brand identity is premium quality, and wedding dresses’ imagery is related to love, the extended “love” is a happily married life, thus a premium quality mattresses/ bed that brings comfort and intimacy, a brand identity extension. Serta’s campaigns’ tagline, “Life is but a dream”, is actually a high-level driven benefit that is an emotional extension from the parent brand, because the target audience fantasize dream-like weddings and aspire to perfect marriage life. However, Vera Wang by Serta is a bit far-stretched from the core product brand. The core competency, product attributes and a functional benefit of a fashionable wedding gown is far from mattress and beds. There is also a great gap in the distribution channel, from boutiques in high-fashion districts to Serta stores. While the price of a Vera Wang by Serta mattress could be only one fourth of a Vera Wang wedding gown, the target audience for Vera Wang by Serta mattress could be those who aspire to have a Vera Wang wedding gown but are only able to afford a mattress designed and endorsed by Vera Wang. That said, the extension target is subtlety different from the parent brand, judging from the price, the distribution channel and the consumer attitude. Undoubtedly, this brand extension causes confusion to the consumer, and the price and distribution channel will deteriorate the parent brand image. However, a Vera Wang by Serta mattress is helping to expand the category. With Vera Wang’s endorsement, it has already created much buzz to create awareness for the luxury mattress category. While there wass not much product differentiation within mattresses and beds, Vera Wang by Serta creates a strong brand differentiation within the mattress category, which is beneficial to Serta.
Brand extensions - II
II: Camel No. 9, now available in Stiletto’s
For decades, Camel cigarettes have predominately been male-focused. Recent brand extension from its core competency and product attributes have allowed it to successfully tap into the female market, with successful campaigns to elevate its brand image to appeal to women by being sophisticated and premium. This brand extension leverages on its core competency. Camel cigarettes were originally blended to have a milder taste, compared to other harsher brands. While Turkish tobacco used in Camel cigarettes has a much more distinctive odor when burned as compared to other cigarettes, it is characterized as distinctive and exotic. This brand extension also leverages on its product attributes of being exotic from its Turkish Gold and Royal variety blends, and creating a new line for females is close to its core competency because it leverages on its brand equity of being distinctive. This new brand extension also rides on the existing brand identity. Originally, the camel symbol represented vogue, because in the early 20th century travels to far away places were in vogue and a camel symbolised that nicely. However, in the new brand extension, “ Stilettos” were highlighted, which is how females travel and represent in vogue. The target audience for Camel No. 9 is drastically different than the male audience, starting from the packaging to the naming. No. 9 evokes women’s fragrances like Chanel No. 19, as well as a song about romance, “Love Potion No. 9.” However, it seems to be a natural brand extension, because it contributes to the overall brand portfolio’s innovative image, and does not hurt the parent brand. While the image is chic, cool and black, it is not too feminine as to hurt the predominant male image. It struck a delicate balance as not to affect the Camel male-smoker.
For decades, Camel cigarettes have predominately been male-focused. Recent brand extension from its core competency and product attributes have allowed it to successfully tap into the female market, with successful campaigns to elevate its brand image to appeal to women by being sophisticated and premium. This brand extension leverages on its core competency. Camel cigarettes were originally blended to have a milder taste, compared to other harsher brands. While Turkish tobacco used in Camel cigarettes has a much more distinctive odor when burned as compared to other cigarettes, it is characterized as distinctive and exotic. This brand extension also leverages on its product attributes of being exotic from its Turkish Gold and Royal variety blends, and creating a new line for females is close to its core competency because it leverages on its brand equity of being distinctive. This new brand extension also rides on the existing brand identity. Originally, the camel symbol represented vogue, because in the early 20th century travels to far away places were in vogue and a camel symbolised that nicely. However, in the new brand extension, “ Stilettos” were highlighted, which is how females travel and represent in vogue. The target audience for Camel No. 9 is drastically different than the male audience, starting from the packaging to the naming. No. 9 evokes women’s fragrances like Chanel No. 19, as well as a song about romance, “Love Potion No. 9.” However, it seems to be a natural brand extension, because it contributes to the overall brand portfolio’s innovative image, and does not hurt the parent brand. While the image is chic, cool and black, it is not too feminine as to hurt the predominant male image. It struck a delicate balance as not to affect the Camel male-smoker.
Brand extensions - I
Global Hyatt’s new brand: Hyatt Place
Leveraging on Global Hyatt’s core competency and brand image of style and innovation, the new brand extension Hyatt Place is inspired by the contemporary business traveler who multi-tasks and seeks for chic and next-generation entertainment content. While Global Hyatt is driven by premium quality, Hyatt Place utilizes its parent brand’s product attributes, allowing guests to have the “Hyatt Touch” by offering distinctive architecture, contemporary furnishing and high-tech facilities for business travelers with a casual hospitality. While Park Hyatt and Regency Hyatt is target towards luxury vacationers, Hyatt Place is aimed towards a different target audience, with selected service offerings, and kiosk check-ins and other high tech self-service facilities, which is for it the agile contemporary business traveler. This brand extension brings much contribution to the category extension. It is offering one of its kind, an innovative and integrated high-tech hotel that adapts well to the changing entertainment and media world. While the Hyatt Place leverages more on the parent brand’s core competency, it also enhances the Global Hyatt brand. Busy business travelers who do not yet have the ability and luxury time to be guests at Global Hyatt luxury hotels are able to be exposed to Hyatt Place first.
Leveraging on Global Hyatt’s core competency and brand image of style and innovation, the new brand extension Hyatt Place is inspired by the contemporary business traveler who multi-tasks and seeks for chic and next-generation entertainment content. While Global Hyatt is driven by premium quality, Hyatt Place utilizes its parent brand’s product attributes, allowing guests to have the “Hyatt Touch” by offering distinctive architecture, contemporary furnishing and high-tech facilities for business travelers with a casual hospitality. While Park Hyatt and Regency Hyatt is target towards luxury vacationers, Hyatt Place is aimed towards a different target audience, with selected service offerings, and kiosk check-ins and other high tech self-service facilities, which is for it the agile contemporary business traveler. This brand extension brings much contribution to the category extension. It is offering one of its kind, an innovative and integrated high-tech hotel that adapts well to the changing entertainment and media world. While the Hyatt Place leverages more on the parent brand’s core competency, it also enhances the Global Hyatt brand. Busy business travelers who do not yet have the ability and luxury time to be guests at Global Hyatt luxury hotels are able to be exposed to Hyatt Place first.
My personal brand assessment
Last year in my Building Brand Equity class, we conducted a personal brand assessment exercise. In order to conduct a personal brand assessment, an equity and needs assessment survey was done by my three group customers. Two of my core customers are: Family and best friends, and the third group of my customers are my one-year IMC friends.
Thanks to my friends' feedback I was able to put together a brand pyramid for myself. From the brand pyramid I also came up with a positioning statement and what strategy and tactics I need to use to keep my "best customers" satisfied ( by meeting their needs and expectations of what a good friend is) and keep them close to me.
Saturday, March 8, 2008
more than just ice cream
As a marketer, we learn how brand strategies should lead business strategies. How branding should be the core to pull consumers, instead of pushing products to consumers.
As a consumer, there are a couple of brands I can think of that have strong brand personalities, that allows me, as a consumer, to easily point out what and how I relate to them:
Ben & Jerry is more than just ice cream. Each flavor is just shouting out its bold personality. It has taken the fun of eating ice cream to all aspects of its brand message. From packaging, to the wacky names and just the entire experience of Ben & Jerry is a different ice cream experience like no other.
Part of the brand image and the company's vision is believing in being environmentally responsible. This message is carried consistently throughout its business practices - whether its sourcing ingredients, supporting non-profit organizations, or using ice cream to help better the environment. Ben & Jerry uses a strong brand strategy to lead the company and its values.
For personalization and customization, Ben & Jerry welcomes "the random genius inside you" to suggest a flavor.
Last but not least, great brands encourage innovation, even if it takes many failures to get to a successful one. Ben & Jerry celebrates their mistakes by putting them in the "Flavor Graveyard"
Consumer Engagement
The future of consumer engagement is not just about how brands can break through the clutter and better communicate to consumers, but how a brand environment can meaningfully connect with the consumer’s environment. Looking forward, understanding how brands shape communities and how communities will shape brands lays the answer to the next level of advertising agencies.
Consumer engagement is not a new concept. However, engaging the consumer is more important than ever in this rapidly changing world. Before, brands and advertisers could push their products and messages to consumers, but now, media has become more fragmented. No longer do companies control a single mass media channel. Consumers are more sophisticated and are driven by peer ratings and reviews. Word of mouth, which has always been the best and most effective marketing tool, is now even stronger with advanced information, communication & technology in this user-generation. The new era of marketing is built around online conversations of millions of people – people that are connecting, communicating, consuming and sharing information. Media consumption patterns have changed into multi-channels, and TV is what radio used to be – a background.
While traditional advertising agencies used to evolve around TV, how should advertising agencies innovate themselves, and where should they head towards to? Fortunately, advertising agencies have slowly adapted and created campaigns based on the new landscapes including Communitatinment, user-generated content and sites, and media fragmentation and engagement marketing. Advertising agencies should be enfolding innovative philosophies, ways of thinking, and creative ways of communication to remodel itself in this environment and consumer change.
Brands and advertisers are already making presence in online media and recognize the importance of finding the relevant contact point to the target consumer, but the context of usage and the significance is often neglected. Knowing that your target consumers log on to certain a website is simply not enough. What’s essential is learning why and how it plays a role in their lives, and the indications and meanings are more important than ever.
Going back to the basic concepts of advertising and marketing, understanding the consumer is critical, and this remains true in this changing media environment. Instead of just understanding the statistics of media usage, brands must invest in knowing the contextual usage of media channels, and the environments their target groups live in. With this understanding, the brand and the consumer will be able to willfully join and engage each other. It is to have the ability of the brand and the brand media environment to meaningfully connect with the consumer’s environment.
That said, the integration of marketing is more critical than ever.
Living in America
In the January 2006 issue of Gourmet Cooking, the magazine stated that America is not a "nation of cooks", and that Americans are spending less time cooking than ever before.
World Monitor wrote in a January 2006 bulletin: " When it comes to eating out, eating on the run, or bringing home prepared food, Americans are in the league of their own. Compared to the rest of the world, it seems America will do almost anything to avoid turning on the stove."
Indeed, coming from a Chinese culture where home-cooked meals and dining together represent traditional family values, there are so many products in the United States that leverage on the insight and benefit of "ease and convenience"
World Monitor wrote in a January 2006 bulletin: " When it comes to eating out, eating on the run, or bringing home prepared food, Americans are in the league of their own. Compared to the rest of the world, it seems America will do almost anything to avoid turning on the stove."
Indeed, coming from a Chinese culture where home-cooked meals and dining together represent traditional family values, there are so many products in the United States that leverage on the insight and benefit of "ease and convenience"
- American culture = Drive-thru
- With Ziplock Zip n Steam Bags, you can cook almost anything by throwing veggies or chicken in a plastic bag and punching some numbers on a Microwave
- American food = fillets. Rarely do you see bones in any type of meat, poultry, not to mention, fish! ( Now would I sacrifice eating delicious juicy meat that requires skillful eating, or just go ahead with a piece of dry chicken breast?)
- A whole aisle (or two) in the grocery store can be dedicated to frozen foods and TV dinners
- Campbell's Soup at Hand Cups is just brilliant
- General Mill's Betty Crocker Warm Delight Deserts...what an innovation! Desert for the lazy American...
More to come...
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