brand extensions

Interplay between brand strategy and innovation

Many stories told by founders and top managers of Funky Brands in the Funky Brand Interview series have demonstrated that product design and innovation and brand strategy often go hand in hand.  A brand cannot be funky if a product itself has poor design. And vice versa, no matter how astonishing product design is, it's difficult to make a product known without a smart brand strategy that supports its development and launch.

According to the Brand Strategy Insider blog, although there is a close link between innovation and branding, the relationship between these two areas of business is often characterized by many tensions:

"In theory they work together, with the brand strategy providing the ‘face’ of the business’s growth strategy. Brand strategy helps companies bring innovation to the market. Innovation returns the favor by enhancing brand reputation. It sounds simple, but the partnership can be an uneasy one and it is particularly uneasy during a market downturn when investing in new brands or sub-brands can be perceived as ‘too risky’. The difficult choices imposed by hard times forces managers to confront the challenge of ‘brand stretch’ more acutely."

As the article suggests, tensions become especially strong while brand managers begin to play with the idea of introducing brand extensions (for more information about brand extensions, read my article Revitalizing tired brands: Chiquita's fruit bars).  Often,  brand managers are torn between the idea of staying consistent (consistency being one of the main goals of brand strategy) and temptation of delivering the new and unexpected to customers, which is the goal of innovation.

But can the surprise and novelty aspects of innovation become part of the brand DNA whilst allowing the brand in question to stay authentic and consistent? Although it may sound paradoxical, the answer is yes, and many Funky Brands have managed to embrace product innovation as part of their consistent brand DNA.

Many funky brands ensure consistent innovation by opening their companies to external talent. For instance, both Kipling and Swarovski often rely on the fresh inflow of creative ideas from outside of the company.  Both frequently strike deals with external designers in order to deliver constant surprise to their customers.  As a result, the surprise and novelty strategy of constant innovation has become a consistent feature characteristic of both brands. H&M has a similar approach to innovation by co-designing fashion collections together with external designers.

 

Opening your company to innovation does not only only happen at the level of product design.  When I join companies on branding projects in my role of a brand guardian, advisor or partner, I serve as a bridge between the company's existing know how and its potential to innovate.

 

 

From Mallorca with love: interview with Camper shoes

Miquel Fluxa from Camper Camper shoes was one of the first funky brands featured on this blog back in 2008.  When Camper opened its shop in Brussels, I thought that a Funky Brand Interview would be spot on for SCHMOOZY FOX’s blog.

And here it is! I had a chance to talk to Miquel Fluxà from Camper.  A son of Lorenzo Fluxà who founded Camper in 1975, he is responsible for business development and brand extensions at Camper. Educated at ESADE and Stern Business School in New York, where he studied business administration, Miquel thinks that one of his professional strengths is the ability to understand and work with creative people such as designers.

The Mamba shoe

“I am not sure if I can call myself creative, at least in the sense of expressing myself through visual arts. But creativity is a very important element at Camper, and I very much enjoy working with highly creative designers who develop shoe designs, as well as those who have collaborated with us on our Casa Camper hotel chain project.

Casa Camper Berlin

SCHMOOZY FOX welcomes Miquel Fluxà to the blog about funky brands! All images in this interview were provided to SCHMOOZY FOX courtesy of Camper.

SCHMOOZY FOX: Miquel, first of all, what makes Camper shoes a funky brand?

Miquel Fluxà: Camper is without any doubt a FUNKY BRAND according to SCHMOOZY FOX’s definition!

Camper together with Bernhard Willhelm AW2010s

We are constantly working on delivering new ideas to the market and we do it with passion and creativity. We think differently and we want to be seen different, although not in a loud, showy way, but with austerity and discretion.

We are serious about what we do, but do not take ourselves too seriously, so we like to add a twist of understated imagination and irony to everything we do. We have a strong core belief that we try to transmit to consumers through product, retail and communication so that they can feel the Camper experience.

Camper together with Romain Kremer AW2010s

SCHMOOZY FOX: And now, could you characterize the Camper brand by only 3 words? What would they be?

Miquel Fluxà: Authentic, thoughtful and imaginative. We are authentic because we have been shoe-makers for over 130 years and we are committed to the long term.

Camper on Madison Avenue in NYC

Quality and craftsmanship remain at the heart of what we do and what we are. We are thoughtful and caring with the people, culture and environment where we work. Camper means “peasant” in Catalan and we have always been connected to the Mediterranean rural world.

And imagination and creativity have always been in the core of the company, applied into every process from the pre-production phase until the recycling, always trying to do things in a different way.

SCHMOOZY FOX: Could one say that these are also the reasons why customers like Camper?

Camper store in London

Miquel Fluxà: Yes, we think so!

We believe that our consumers know Camper values and share them. Our products reflect what we are: our know-how and creativity have always been the common thread of our collections, and we have now taken this to an upper level: Extraordinary Crafts, Creative Quality and Quality Execution, under which we combine our passion and experience with new ideas to create shoes that are useful, innovative and full of personality.

We think that this is something that our consumers take deeply into consideration when they decide to purchase a pair of Camper shoes.

SCHMOOZY FOX: Camper was founded by your father. What made you decide to join forces with your father and continue building Camper as a family business?

Miquel Fluxà: Although Camper as a brand was founded by my father in 1975, the origins of the company go back to 1877, when my great-grandfather founded the first shoe factory in Spain and later  my grandfather continued with the factory. That makes us the fourth generation.

Although there was nothing planned and we had no obligation to continue building Camper, there is an important sentiment of responsibility of continuing the family business.

It also a great luck to work in company like Camper, which is an international company with fantastic people working all over the world, an interesting company with great projects, and based in a fantastic place like Mallorca!

SCHMOOZY FOX: Camper has a worldwide presence. What do you think are the countries where Camper is loved most?

Miquel Fluxà: Considering that the Spanish and European and some Asian countries like Japan and Taiwan consolidations took place in the 80s and 90s respectively, the presence of Camper in these mature markets is broader than in the new ones. However, the last decade has represented the introduction and development of the brand in the United States, Asia, Australia and more recently Russia.

We are confident that Camper lovers can be everywhere in the world. New technologies such as the social media have allowed us to collect information about unexplored markets and we are surprised of the quantity of fans that Camper has in countries where we do not even have a selling structure.

SCHMOOZY FOX: What are the main distribution channels Camper uses?

Miquel Fluxà: Camper is distributed through its own stores that we operate directly, and through multi-brand stores and department stores. The wholesale activity is currently the most important one.

The company was born in 1975 and during the first years the products were marketed only through multi-brand stores. However, we realized that the best way to create a whole Camper experience for our customers was by setting spaces that would allow them to interact with the shoes and the brand.

As a consequence of this reflection, in 1981 we opened our first store in Barcelona, and in 1992 we opened our first store outside Spain in Saint Germain in Paris.

SCHMOOZY FOX: As regards your online shop, what are the challenges and advantages for the consumer to buy a pair of shoes online ? What do you do in order to bring the in-store buying experience to the online world?

Miquel Fluxà: Probably the biggest challenge for us is to enhance consumers’ online purchase experience when they decide to buy shoes through our online shop and, therefore, we focus on three different factors.

First, we provide customers with as much information as possible about the shoes: detailed description, high quality pictures from different angles, quick search menu. Then, we seek excellence in our pre-sale and after sale customer service. Finally, we want the online purchase to be a total Camper experience as it would be to buy in a physical store.

Madrid Fuencarral Storesmall

For us the online store is another Camper store, only with a different format and approach to the customer, and we consecrate our efforts to ensure that the customers feel that they are at a Camper store, providing them with the same quality, service and warranties.

SCHMOOZY FOX: Finally, how does Camper plan to continue being a funky brand in the future?

Miquel Fluxà: We will keep on trying to make creative shoes, executed with quality and comfort and maintaining our commitment to sustainability. We will continue increasing our creative network with consolidated and future talents. But above all, we will remain faithful to our origins and values!

SCHMOOZY FOX: Thanks for this interview, and I wish you a lot of success with Camper!

Diffusion brands vs parent brands

A significant advantage that successful luxury brands have, is that they have a good chance to launch diffision brands. Diffusion brands are a form of a line extension, discussed before.  They are “step-down line extensions of existing  luxury brands, normally less expensive than the  main-line merchandise.” ((How Young Adult Consumers Evaluate Diffusion Brands: Effects of Brand Loyalty and Status Consumption, Ian Phau Edith Cheong , Journal of International Consumer Marketing, 21:109–123, 2009))  They are often called second lines, subbrands and endorsed brands. Think of them as “children” of their more established “parent brands”.

Armani dot com screenshot

Examples of diffusion brands abound in the fashion world, for instance. Armani launched  Armani Exchange, Calvin Klein introduced CK, and Prada started a diffusion brand with a whole new name: Miu Miu. In all of these cases, the important condition for introducing diffusion brands was very high brand loyalty and brand recognition of parent brands. In other words, unless the brand equity of your parent brand is high, it might not be even a good idea to start considering diffusion brand launches.

There are several observations that I want to make in relations to diffusion brands:

  1. By launching a diffusion brand, a parent luxury brand de facto enters a whole new world of new luxury (also referred to as mass luxury and affordable luxury). I wrote on this subject before. New luxury is where many funky or funky-to-be brands develop.  If done properly, the new luxury positioning can bring enormous benefits to both: a child brand and the parent.
  2. Diffusion brands are a good way to target consumers who are usually much younger than the main target market of parent brands. They can tap well into the trend of status consumption, “The motivational process by which individuals strive to improve their status through the conspicuous consumption of consumer products that confer and symbolize status both for the individual and surrounding significant others.” ((Status consumption in consumer behavior: scale development and validation, Eastman, J. K., Goldsmith, R. E., and Flynn, L. R.  Journal of Marketing Theory and Practice. Summer 1999, 41–52.))
  3. Empirical research demonstrates ((Phau, Cheung, Journal of International Consumer Marketing, 21:109–123, 2009)) that diffusion brands have the same quality and status perception among younger target market as parent brands. This is a great way to appeal to a younger audience, and chances are that it will later on develop preferences for the parent brand as well.
  4. Importantly, the success of diffusion brands is often determined by a brand naming strategy. To put it simply, if a child brand bears the name of the parent (like Armani Exchange has a name of the parent brand, Armani), the benefits reaped from the existing status of a parent brand are almost immediate. If, however, a child brand is given a totally new name (Miu Miu vs Prada), such benefits are much less apparent. ((ibid.))

Armani Exchange screenshot

Diffusion brands are not a phenomenon characteristic exclusively for luxury products and services. On the contrary, they frequently occur in a very vast and complex area of brand architecture.

Brand partnerships

Photo by Nelson Cheen on Flickr

Funky brands evolve, they are not static.  In spite of being able to stay true to its authentic values and brand vision, a funky brand is nevertheless able to keep its finger on the pulse of consumers, experiment and surprise them.

BRAND RE-VITALISATION TECHNIQUES

I have already discussed several techniques that brands use in order to stay contemporary and fun.

Line extensions occur when a company “introduces additional items in a given product category under the same brand name, such as new flavours, forms, colours, ingredients or package sizes.” 1.

Example is Starbucks introducing a line of instant coffee, Starbucks Via.

Brand extensions are more radical ways of either capitalizing on the success of your already popular brand, or bringing some fresh air into the otherwise old and tired brand image. A brand extension is “using a successful brand name to launch a new or modified product in a new category.”2

Example: a brand of bananas Chiquita and its new line of fruit juice bars.

BRAND PARTNERSHIPS, OR CO-BRANDING

True to its "schmoozy spirit" (schmoozing is the term I discussed before), SCHMOOZY FOX is fond of brand partnerships.

They can be particularly interesting for you if your brand does not yet plan to launch a whole new product line, or extend into a totally unexplored area.  Then perhaps a brand partnership is something to keep in mind while you are searching for a strategic direction. Brand partnerships are also referred to as co-branding.

A brand partnership is usually a short or medium-term collaboration between two or more brands in order to enhance each other's positioning vis-a-vis the target market.

FASHION AND HOME ACCESSORIES

A recent trend that I've been noticing in the mass luxury (also called new luxury) market is this: fashion brands partner with artists and designers to create home accessories.

Here is a recent example of this trend that I came across in a Dutch magazine (forgot its name :( )

Diesel lamp

This is a lamp that is a result of a brand partnership between Diesel, Foscarini and Moroso.

Another example is a recent partnership between Levis and fashion designer Veronique Branquinho. The suprising result of this partnership is not actually related to fashion at all.   It's .... wall paint that is sold under a slogan Fashion for Walls.

levis_ambiance_1

Watch this space for more examples of brand partnerships.

1) Principles of Marketing, P. Kotler, 2002, p. 478

2) Kotler, Principles of Marketing, 2002, p. 479

Theo loves you

Photo courtesy of theo: view from the top floor of theo office to the patio

As I was walking through the windy Antwerp streets yesterday, I quickly gave in to the overpowering atmosphere of design, fashion and great interiors typical of this great city. I was on a mission to meet one of the important players on the Antwerp fashion and style scene, as well as internationally, Wim Somers, founder of a funky eyewear brand, theo. At the end of my journey through Antwerp's most fashionable streets that are host of great shops and funky cafés, I reached theo's office building. As I entered it, the exuberance of colors struck me with a good dose of positive energy, that I especially appreciated on a cold and grey day. My funky journey began, and here's an account of what I discovered by talking with Wim Somers, who had founded theo back in 1988.

SCHMOOZY FOX: Wim, the main reason I am here is that a couple of weeks ago I went to my favorite optician's store in Brussels, Capelle Opticien, to get a new pair of glasses. After having a little chat with the shop owner, I was recommended this great pair of theo glasses. Its design, a big edgy and unusual, and yet extremely elegant, prompted me to find out more about your company.

The frame came in a bright box, which displayed a very simple yet quite powerful message: theo loves you. Could you tell me the story behind this brand slogan? Wim Somers: We have been using this slogan for over 20 years now. It began as a memo on an order form and has developed into the slogan of the brand theo. This phrase communicates theo's core philosophy quite well. Since we distribute our glasses through opticians' stores, we rarely touch the final consumer.  By stating that theo loves our final consumers, we have a better chance of connecting with them closer, and communicating the fact that we have first and foremost their interests and their tastes in mind when we design our glasses. The phrase theo loves you encapsulates the spirit of the company, which is loving and friendly.

SCHMOOZY FOX: What makes theo so different? How do you make sure you stand out from the crowd?

Wim Somers and Olga Slavkina

Wim Somers: I guess, I can mention strong recognition of our brand, and our distinct style, by the end user. This is our strength and differentiating factor.

SCHMOOZY FOX: And who are your customers? What is the profile of theo's “typical customer”?

Wim Somers: For theo, the most important characteristics of our customers have to do with their emotional profile. By the way, these days more and more business people talk about emotional marketing, but when we started the company, it wasn't so common. However, already at that time, we thought of our customers in terms of their emotional profiles, not only gender, age and location. When we started, we served a very narrow avant-garde niche. With time, the niche expanded greatly, and now I can say that our customers are people with personality, those who prefer top-quality design that allows them individual expression of style and personality to the power of “labels”.

Photo courtesy of theo: Flandria model

SCHMOOZY FOX: I have the impression that most of the big eyewear brands are actually brand extensions of big fashion brands. Since theo is purely an eyewear brand, what are the advantages of that?

Wim Somers: Our advantage is that we are very strong at superior design, something that big fashion labels, that usually work through licensing agreements, do not often have.

SCHMOOZY FOX: Do you think of yourself in terms of geographical scope? For instance, do you say that you are an international brand, a Belgian brand, an Antwerp brand? Wim Somers: Well, I often associate theo with Antwerp, but we're often approached by opticians from many different countries who have heard of us as an international brand.

Photo courtesy of theo: Andalouse model

SCHMOOZY FOX: theo is for sure an important player on the Antwerp fashion scene. How does actually the image of Antwerp, you can say, the Antwerp brand, help you? Do you think that Antwerp has a strong image internationally?

Photo courtesy by theo: another snapshot of theo's funky office

Wim Somers: An interesting fact is that our end consumers usually know about Antwerp, and the fact that it's a style, design and fashion city. In fact, the end consumer is much more aware of Antwerp, and the fact that theo comes from Antwerp, than our collaborating opticians! The latter have rarely heart of Martin Margiela or Dries Van Noten, who are  famous fashion designers from Antwerp.

We often tap into the great fashion and style resources that exist in Antwerp. For instance, we have recently collaborated with an Antwerp-based rising star of fashion design, Tim Van Steenbergen, to create a spring-summer 2010 sunglasses collection.

SCHMOOZY FOX: What are the values of theo brand, and how do they correspond to your personal values? Wim Somers: Positive attitude to life, quirkiness, and fun.

SCHMOOZY FOX: Could you give your personal advice to anyone who wants to build a funky brand? Be different. Observe. Look at people in the street, see what they like and dislike doing.  I do most of my “customer research” in modern art museums around the world. Just by looking at their visitors, I can definitely get a good feeling forhow popular theo  is in that particular country!

SCHMOOZY FOX: Thanks for this  interview, and stay funky!

What's your brand's slogan?

CokeToday I'll talk about brand slogans, or tag lines and the role they can play for building your brand. First of all, what is a tag line?

About.com gives us this definition, "A slogan or phrase that visually conveys the most important product attribute or benefit that the advertiser wishes to convey. Generally, a theme to a campaign."

But in fact, tag lines are not only short-lived advertising phrases that are associated with promotional campaigns. Some of the most successful examples can show you that tag lines can be inherent to your brand, and play a key role in building it. For that matter, let's call them brand tag lines.

Some of the most successful brand tag lines have extremely strong associations with corresponding brand names. If I ask  you, whose tag line is Just Do It, most of you will know that it's Nike's.

Other popular ones are:

  • Melts in your mouth, not in your hands (M&Ms)
  • Think different (Apple computer)

For more examples, check out this article.

I am not suggesting that you absolutely need a brand tag line! Or, at least, not immediately after you've launched your company. A tag line can evolve as your business evolves. The best moment to start putting a brand tag line underneath your logo is when you've understood what brand values are inherent to your funky business. This is when a good tag line can work wonders and reinforce your brand.

If you feel that you'd like to give your brand a little boost with a tag line, where do you start? Well, first of all, you don't even need to think in terms of the products you sell because even this might change in the future. I mean, don't put a tag line, "We sell shoes" next to your shoe brand logo. Apart from being simply boring, it will lock you in the shoe business, and you won't be able to get your brand extended into bags and umbrellas a couple of years down the road.

A brand called Innocent (they produce smoothies and juices) has come up with a tag line, Little tasty drinks. It's a bit more interesting than simply saying, "We're into drinks", but it still locks them in, well, drinks. But okay, not every brand thinks in terms of those possible brand extensions, right?

Little tasty drinks: Innocent's tag line

So, what are some general principles you should keep in mind to give your brand that extra sparkle with a nice tag line?

  • Keep it short. Please! I've seen whole phrases that took up half of page -- this usually looks simply ridiculous
  • Base it on your company's brand values, not  necessarily products you sell
  • However, it's okay to give some clues about what your business is about
  • Think twice before throwing in too many cultural references to the tag line -- they might work well in one geography, but won't serve you right if your company grows and becomes international. Stick to universal values instead!
  • Share your passion in a tag line, it will be likely to get noticed

For more info, check out an article on Entrepreneur.com and the Hall of Fame of the site AdSlogans.

Revitalizing tired brands: Chiquita's Fruit Bars

What comes to mind when you think, "Chiquita?" Is this, "bananas?" Lately, Chiquita has extended its brand into fruit bars, based on a franchise model. This short post talks about a Chiquita Fruit Bar spotted in Brussels.