brand image

Gaga boosts Google's brand

First, it was Katy Perry visiting Facebook. Then, SnoopDogg came over to Twitter's offices to say hi to its employees. And just earlier this week, Lady Gaga gave an hour-long talk to Google's employees in an interview session conducted by Google's head of consumer products, engineer chick Marissa Mayer.

  Silicon valley companies are trying to boost their internal company culture by inviting celebrities to schmooze with employees. The Silicon Valley battle for talent is on the increase, and companies there try to funk up their brands by inviting cool celebs over.

 

In fact, each of these stunts act as one-off co-branding stunts, with Facebook associating itself with Katy Perry's brand image, and Twitter with that of SnoopDogg's.

 

But in this battle of co-branding between tech and entertainment, Google has certainly outperformed its competitors. In fact, it's also outperformed itself by managing this stunt in a very professional, and also very funky way. Google prepared well for Gaga's visit (look at the awesome video about Gaga at the beginning of the YouTube interview above), and made sure that its employees got a chance to interact with her during the Q&As session. The interview was recorded and posted on YouTube for everyone to get a glance at Google's internal company culture.

Google's choice of Lady Gaga is very smart from the point of you of branding. Not only is she a celebrity and a talented performer, she's also someone with a personality.  While Google is making an effort to retain its current employees and attract new talent, Lady Gaga's powerful personality that she managed to project so well during the interview, supports Google's important brand value -- respect for talent and uniqueness.

 

By inviting a female artist to its HQ, as well as by appointing a top woman exec as the interviewer, Google also sends this message: women are an important part of the company. Well done!

And finally, the content of Google+Gaga's video will satisfy both web addicts and  entertainment lovers alike, and is likely to get lots of hits on YouTube.

 

My favorite quotes by Gaga in this video are:

 

"The most important thing about your creativity is that you H O N O R  your creativity."

 

"If you don't cast any shadows, you are not standing in the light"

 

Belgium: no government, but great shirts

 

When Belgian actor Charlie Dupont went to a party together with his friend Nicolas Borenstein, he was struck by the dull parade of sweatshirts worn there.

“Why is it that even here in Belgium, all these guys wear sweatshirts with Harvard University and I love NYC slogans?” Charlie asked Nicolas. “Let’s make inexpensive T-shirts with the names of small Belgian towns written on them, and sell them in tourist shops.”

At the party, Nicolas only chuckled at the idea. But when he woke up the next morning, he recalled the discussion. He liked Charlie’s inspiration, but he had a different vision: to create a brand of superior quality premium T-shirts and sweatshirts that would communicate all things Belgian, not only names of towns. Just 3 years later, BShirt is a successful Belgian premium fashion brand, sold in almost 70 distribution outlets across Belgium and planning to grow internationally.

I met Nicolas Borenstein in his stylish and funky office in downtown Brussels to discuss BShirt and to get to know the creative and entrepreneurial spirit that drives the brand.

SCHMOOZY FOX: Was BShirt your first entrepreneurial project?

Nicolas Borenstein: No, it wasn’t my first idea. When I had this idea, I was already running a graphic design studio in Brussels. One could say that I am a 100% entrepreneur, since I’ve never worked for anyone apart for myself.

SCHMOOZY FOX: After that conversation with your friend Charlie, how long did it take you to have the concept of your brand ready, and then launch it?

Nicolas Borenstein: The concept itself came together very fast. I think that Charlie triggered something in me, with his idea of putting names of Belgian towns on T-shirts. But I definitely wanted to dig deeper, and create a product that was artistic, funky and high quality. I also thought that Belgium has a lot of quirky local concepts that are worth talking about – its own brand if you like – and yet nobody has tried to apply this to a fashion brand. There was definitely something unique in there. I am a graphic designer by training, so it was easy for me to come up with ideas for each T-shirt and turn them into visual forms. That took some time and a lot of brain-storming with myself as Charlie was busy and I ended up doing this project on my own.

I think an important decision that I made was to use old-fashioned loom weaving technology to produce BShirt garments. The reason why I wanted it was because the quality and feel of the T-shirts is much better as a result, although the downside is that production cannot be scaled up in the same way as more modern technology allows. Finding an appropriate factory that could create top-quality cotton garments took a while, and finally I signed a contract with a manufacturer in Portugal.

Then I spent the whole year working on prototypes, and in 2008, I was ready to order the first batch of 1000 BShirts and show them to shops.

SCHMOOZY FOX: Getting your distribution channels right is crucial if one wants to build a good brand. What were your criteria in selecting the desired shops?

Nicolas Borenstein: I wanted to choose the kind of shops that would sell premium trendy and quirky garments. Over the years, I’ve developed a lot of interest in the fashion industry in general, not least because my family had a fashion business. So, by the time that I had to introduce the first BShirts to stores, I had a clear idea where to go, and which stores would be in line with the brand image I wanted to create.

SCHMOOZY FOX: And what was the reaction of the stores?

Nicolas Borenstein: To my surprise, the reaction was very positive. Out of 15 stores that I visited, 10 decided to order BShirt garments! So, my first 1000 shirts were sold out in no time. But there was a little problem -- I needed to deliver another batch fast!

SCHMOOZY FOX: But you had a manufacturing facility in place, so it shouldn’t have been a problem?

Nicolas Borenstein: Indeed, except the factory turned out not to be a very agile entreprise, to say the least. It took them forever to produce the next batch, while the shops were waiting impatiently. On top of that, the buzz around BShirt was already spreading into the press and I could already boast a good number of positive reviews that appeared in fashion magazines.

SCHMOOZY FOX: That’s quite an achievement! All of that just after selling the first batch?

Nicolas Borenstein: Yes, pretty much so. Right before the launch, I asked a friend of mine to recommend me the best fashion PR agency in Belgium, and he said, “Go talk to UPR. They are the best, but they have to like you, they turn many clients down.”

But UPR liked BShirt, and I was happy that they helped me generate the buzz so quickly. (O.S.: This reminds me of another brand that I interviewed, Ice Watch, which also relied on PR early on).

SCHMOOZY FOX: Positive buzz is great, and it can certainly trigger demand for products. But you need to be able to deliver to support this demand. Did your factory score well in this respect?

Nicolas Borenstein: In fact the factory continued to be unreliable. There were further problems with timely delivery, and in the end I had to skip a whole season. This kind of thing can be deadly for a fashion brand -- especially if there’s clear demand for your items, and you just can’t meet it! It was frustrating not to be able to do anything!

SCHMOOZY FOX: How did you solve this? Did you find a better factory?

Nicolas Borenstein: Yes, now I work with another factory. While searching for a better factory, I also realized that I needed a partner who could help me by bringing investment and business know how into the company.

SCHMOOZY FOX: And you found such a person?

 

Nicolas Borenstein: Luckily, yes. I brought him some shirts, and a big stack of press clippings, and I said, do you want to work with me? He agreed.

SCHMOOZY FOX: How big is your company now?

Nicolas Borenstein: We have 10 people working at BShirt. Our products are now sold in almost 70 stores in Belgium, and there is certainly potential to sell it in many more. And it’s just the beginning. In due course, I hope that funky BShirts will also be in New York, Paris and other cosmopolitan places around the world.

SCHMOOZY FOX: How would you describe BShirt?

Nicolas Borenstein: I actually like your term, Funky Brands. BShirt is exactly that -- funky, with a lot of character. It’s certainly different -- as I’ve said, nobody has yet made a fashion brand based on Belgium. BShirt is a mood-booster, it brings a smile to the faces of those who wear it. In some press reviews, it was called a “funny brand”, but I think that this is not right. A “funky brand” is certainly much more correct.

SCHMOOZY FOX: Why do you think people like to wear BShirt?

Nicolas Borenstein: They probably feel that it’s just the right thing. Somehow, I think that everything falls into place when you put on a BShirt -- the texture, smell, color... It’s all about that feeling of old-fashioned, high quality cotton on your skin, in combination with the novel Belgian fashion concept.

SCHMOOZY FOX: What do you do in order to stay creative, and full of energy to run your company? Where do you get your inspiration?

Nicolas Borenstein: I think I owe my creativity to the fact that, deep down, I am still a bit of a kid. I also work very fast, which helps a lot. I can do a day's work in 3 hours. Yesterday, i worked for 11 hours, and I accomplished my tasks for the whole week. So, now I can concentrate on other things, and even go to my Qi Gong course (smiling). And this, in its turn, might trigger a new wave of creativity and inspiration.

SCHMOOZY FOX: Could you tell me about BShirt’s future plans?

Nicolas Borenstein: We’ll soon be opening a flagship store in Brussels. And we also plan to launch four collections per year instead of the current two. In fact, these will be two big and two smaller collections. And of course, we’ll continue creating new collections to sustain and build the funky brand of BShirt!

 

Brands at the Oscars 2011

Since the Academy Award, or the Oscar, was established in 1929, it has become a strong brand (see my previous article Events as brands: Paris Fashion Week). Its brand image is the one of glitz, glamour and red carpets.  That's why this event has been so much liked by luxury brands that are all about glamour and exclusivity.

This year, however, along with Gucci and Prada, it seems like the Oscars is becoming a bit more funky and relaxed.

First, it  will attract an unusual participant from the world of brands -- Omega 3 snack mixes Planter, a Kraft Foods brand.  With its Nutmobile specially made for this and other promotional events, Planter will make a statement about its support for the green and eco-friendly way of life.

The Nutmobile  by Planters

View image source here.

Second, many brands that are tapping into the huge advertising potential of the Oscars, will be exploring social media on a much larger scale that they've done so far. The Academy Award itself has been actively engaged in generating buzz about the event with a series of videos that feature young and hip hosts James Franco and Anne Hathaway.

Philippe Starck gives a boost to photo booths

Probably everyone has at some point of his or her life had to get a passport photo taken at a photo booth. I bet,  the experience was nothing spectacular, and most certainly far from funky. You sit down, try to look the best you can, and then follow the instructions of a metallic voice that directs you not to smile, take off your glasses, and click OK if you like what you see.

All of this in a rather dull environment.

In France, the chain of photo booths Photomaton has recently decided to move away from boredom, and provide a nice ambiance to its customers. For this purpose, Photomaton has hired the famous Philippe Starck who, a strong brand himself, has a golden touch as far as giving a boost to tired brands goes.

To address the requirements of its young customers (young people are the ones who change their passports and other documents most frequently), Photomaton has integrated touch screen technology and a possibility to upload the freshly taken photos on Picasa and Facebook.

Getting an object designed by Philippe Starck can give a huge boost to any brand. In this sense, I would not just call the Photomaton-Starck co-operation a deal between a brand and a designer. It goes much farther than this. It's essentially a brand endorsement, in which the personal brand of Philippe Starck serves as a powerful meta-brand which boosts the brand image of Photomaton.

A snapshot of Starck from an article in Management

Original source (in French): Photomaton s'offre un nouveau look avec Starck, by Olivier Marbot, in Management, February 2011

The power of personal branding

Build your personal brand and show it off on the red carpet! Image by Fascinating Girl on Flickr In my blog post The Zuckerberg Brand I talked about the recent positive buzz that has surrounded Mark Zuckerberg, and how it has boosted the brand of the company he had founded, Facebook.

Paraphrasing myself, Facebook is known pretty much by everyone on planet Earth. Facebook’s business model relies on people to trust it with their data. If they trust the CEO, they are much more likely to trust the platform.

The blog post about Zuckerberg resulted in some friends’ comments posted directly on my Facebook profile.  To summarize, there was general hesitation towards powerful CEO brands. One of my Facebook friends argued that the "CEO star syndrome would eventually hurt the company in question".

Sure, there are, of course, certain risks involved when you embark upon a thrilling mission of building your personal brand. This is especially true when you are an entrepreneur. You might doubt if it's the right strategy to be known for being yourself first, and only then for being a company founder and CEO. All kinds of concerns might be running through your head...

What happens if I build a lot of personal brand equity and then decide to leave my company? What if this will leave customers dissatisfied? And what if the business loses its appeal and its brand image changes and becomes worse?

There may be many what if's one could come up with. And here's my advice to you: dump the what if’s. Build your personal brand, and invest in it as much as you can.  The Funky Brands philosophy applies also to your personal brand: it's better to stand out from the crowd than be like everyone else.

Image source: http://blog.careergoddess.com

And hey, if you are a cool and famous person, it’s just so much better than the opposite, right? It will also help your business, too.

A couple of Funky Personal Brands of successful entrepreneurs that come to mind are Oprah Winfrey and Gary Vaynerchuk.

Oprah herself (www.twitter.com/oprah) has almost 5 million followers on Twitter! Her businesses, such as Oprah magazine and Oprah radio, have significantly fewer followers. However, Oprah might also tweet about her businesses from her personal account, so the cross-promotional opportunities between herself and her businesses are enormous.

Gary Vaynerchuk (@garyvee on Twitter) is a personal branding phenomenon. Gary grew his dad’s liquor store in New Jersey into a multi-million dollar online wine retailer by understanding the essence of social media. I think his secret is dedicated engagement with his customers and fans throughout social media channels, and an edgy personality that he’s not afraid to broadcast on the web.

He’s genuine, and it shows. He might not be everyone’s cup of tea, but his honest and direct style is impossible to copy. It’s key to his funky personal brand. Read Gary's tips on building your personal brand here.

So, dear entrepreneurs, understand who you are and what drives you. Get into your full personal power. But don’t set the goal of being liked by everybody -- this is not going to happen.

Simply be yourself, and express your passions. And then think of the best ways to get your personal brand known to others.  You’ll have fun, and meet like-minded individuals.

And you know what? Your business brand may get an incredible boost from your funky self-expression. Have fun!

Swarovski: enchanting the world

GINSENG_BangleToday SCHMOOZY FOX is happy to publish an interview with yet another Funky Brand -- Swarovski.

The origins of this Austrian company go back to 1895, when its founder Daniel Swarovski invented a machine for cutting and polishing crystal jewellery stones. Today, the Swarovski group, still family-owned and run by 4th and 5th generation family members, has a global reach with some 24,800 employees, a presence in over 120 countries and a turnover in 2009 of 2.25 billion Euros.

Swarovski comprises two major businesses: one produces and sells loose elements to the industry, whilst the other one manufactures and sells design-driven finished products. And it’s surely the latter that makes the Swarovski brand known to most of us. It’s particularly interesting to feature Swarovski on this blog, due to its positioning as a contemporary luxury brand -- after all, SCHMOOZY FOX’s area of particular expertise is what we call Affordable Luxury (join our Affordable Luxury group on LinkedIn).

NOBLY_Keyring Aqua

I am happy to talk to Nathalie Colin, Swarovski’s Creative Director of consumer goods, who’ll give us some insights into the company’s brand strategy.

SCHMOOZY FOX: Nathalie, Swarovski has a very long history of technological innovations and quality. How does a company with such a heritage manage to innovate and stay contemporary?

Nathalie Colin: On the one side, we have a heritage and values that we need to protect and maintain. On the other side, it is our responsibility to balance the heritage with the need for change, in a careful and respectful way.

We pay a lot of respect to the heritage of Swarovski, and to the initial visionary approach of Daniel Swarovski who founded the company. At that time, it required a visionary strategy and out of the box thinking to found this company in the middle of Tyrol. Daniel Swarovski knew early on that innovation was key, and that networking and collaborating with artists and designers (Christian Dior, Coco Chanel, Elsa Schiaparelli) was crucial to bring fresh ideas into the business.

From its very beginning back in 1895, Swarovski has been continuously exploring the extraordinary possibilities of crystal. And even now every step in our design process focuses on the same ambition: to push the boundaries of crystal.

Working with crystal is a given and I work with this in mind. I am particularly interested in various creative techniques with crystal: crystal mesh, pavé, stone set in stone, floating stone, exclusive faceted cut crystal stone, beading, embroideries, and Pointiage® -- a real craft couture technique where all stones are applied one by one by hand.

All these techniques open doors to endless creativity, especially when one can mix them together.

SCHMOOZY FOX: What about Swarovski’s co-operation with famous designers? I suppose this must be one of the important drivers that help create a contemporary brand image?

Nathalie Colin: It surely does! To give you an example, I am very pleased with our choice of inviting Harumi Klossowska de Rola as a guest designer the Spring-Summer 2011 season. One could say that Harumi is a Swarovski woman: modern, feminine, international, trendy, artistic, with an interesting personality.

She is also a muse, who has inspired photographers like Bruce Weber, Mario Testino, Althur Elgort. Elegance and mystery have become her signature.

Swarovski Nymphe zip coin purse, SS 2011

Harumi is the daughter of internationally renowned painter Balthus and Japanese countess Setsuko. She has an intimate connection with the world of painting, and she herself also paints. Our iconic motive of the season, the butterfly, is also one of her favorite animals (she has a butterfly-shaped tatoo). She was very enthusiastic to design a butterfly-inspired theme for Swarovski. The delicacy of the jewelry theme she has designed is really stunning.  On a personal level, I do appreciate the international spirit of Harumi, her sensitivity, her taste for cultural diversity… and her great sense of humor!

SCHMOOZY FOX: What does the brand of Swarovski stand for?

Nathalie Colin: Creation, perfection and innovation are Swarovski’s key values.

Our approach to design combines femininity and emotion with the rigour of innovation, and attention to details. Some of the technics we have developed (like the

Swarovski Nature brooch SS 2011

handmade Pointiage™ technic) have helped us create a distinctive signature style, and yet allow every accessory look unique.

In terms of brand positioning, we call Swarovski a contemporary luxury brand (SCHMOOZY FOX calls this “new luxury” or “affordable luxury” -- O.S.)

This positioning reflects our offering of desirable products which are accessible and have a broad appeal.

It also allows us to to combine our expertise in jewelry and crystal established since 1895 with creativity, quality and innovation to enchant our consumers.

This concept embraces the idea that luxury is no longer about acquiring for status. Instead, it has become a life enhancing experience that is linked to emotional enrichment and enchantment. Contemporary luxury is not elitist, it belongs to everybody. Swarovski is all about experiential value: enchanting the world, inspiring new perspectives, enhancing lives.

DOLLL_MPAContemporary luxury is provided by a brand that represents credibility, emotion, accessibility and is open to your heart. And this is why people come in our stores.

SCHMOOZY FOX: Could you tell me about the job of a Creative Director for Swarovski? Do you come up with all the new product ideas?

Nathalie Colin: I was appointed by Swarovski as Creative Director in 2006.  It is a great feeling to know that the work done by our creative studio will be known by large audiences.

Due to the scale of the company, I have a wonderful work environment as well as support with a large team of in-house experts one could dream of when it comes to product innovation, quality, plating, etc.

Finally, I very much relate personally to the brand’s ambition to enchant the world. This is such a positive vision! This concept embraces the idea that luxury is no longer a material acquisition for status but instead has become a life enhancing experience that is linked to emotional enrichment and enchantment. Swarovski is all about this experiential value: enchanting the world, inspiring new perspectives, enhancing lives.

And I really feel connected with what the brand stands for: credibility, emotion, accessibility and openness to your heart. And this is why I love being Swarovski’s Creative Director and why people come in our stores!

MILADY_BagSCHMOOZY FOX: Tell me a little bit about how you work, is there some pattern that you follow to launch new collections?

Nathalie Colin: Yes, there’s definitely a pattern that I follow. For example, I always start by researching the overall mood of the coming season: what is our state of mind ? Will there be a season of ornamentation? A season of exuberance? Are we going back to the roots? Is it more about vintage revival or rather a modernistic approach?

Once key trends have been identified, mood boards are designed to show possible sources of inspiration and key design concepts.  These boards stress the key colour mood and focus on the key colour palette. Important details such as the design of unique stone cuts focus on specific techniques. Decisions of whether to mix crystal with other materials are worked through in the next design steps.

The design of exclusive crystal stones takes place early on, inasmuch as the development of special colour coatings. This requires support from the innovation & product development team. Other teams that support our design process are product development, marketing, quality, production and supply chain.

To give you an idea of my collection planning schedule, in September 2010 I already started working on the Spring - Summer 2012 collection and began to inspire related teams throughout the company. The design phase started in October/November. And the samples will be fully approved and completed by June 2011.

SCHMOOZY FOX: I like Swarovski’s characters -- Erika and Eliot. Is there a story about them?

ELIOT URBAN BEAT_Keyring

Nathalie Colin: Yes, there’s a beautiful story about them! Eliot and Erika were born from a single crystal egg, and at birth the fairies gave them the power to bring instant joy and poetry wherever they go. Originally named Elvis, our young hero returns as a budding artist and graffiti tagger under the pseudonym Eliot. Easily recognizable and exemplifying Swarovski’s unique creativity and know-how, Eliot and Erika re-appear every six months with brand new looks and accessories. Originally launched in the form of pendants, today Eliot and Erika appear on a whole range of Swarovski leather goods such as coin purses, clutches and even handbag charms. Since their debut in Spring/Summer 2008, the pair has become a great success, eagerly awaited each season by fans across the globe. Many other adventures are already planned for Eliot and Erika in the coming seasons.

SCHMOOZY FOX: What are the main highlights of Swarovski’s brand strategy? How does it plan to stay a very innovative, exciting and funky brand in the future?

ERIKA URBAN BEAT_KeyringNathalie Colin: Our key brand strategy objectives are work on the architecture concept, celebrity marketing initiatives and work on new market segments.

We plan to expand a new retail concept to the new and already existing retail network. Today, Swarovski is an international player with strong retail business of 1800  branded boutiques and other points of sale in all major fashion capitals around the world.

It is in the luxurious and world famous Ginza district in Tokyo that Swarovski showcased the utmost creative expression of the ‘Crystal Forest’ concept with the opening of its first Flagship Store at the end of March 2008. And in December 2009 we opened a new boutique on 146, avenue des Champs-Elysées in Paris.

Speaking about the new retail concept, it has been designed by Tokujin Yoshioka as a multi-sensory experience, giving visitors the chance to immerse themselves in the seductive brilliance and infinite depths of crystal. We wanted the new retail architecture to surround the brand with a true crystal experience focused on pleasing the senses. We plan more than 150 openings this year and do have similar plans for the years to come.

Regarding celebrity marketing, since 1999, Swarovski has been deeply involved in the Cannes Film Festival, and since 2000 in the Academy Awards (the Oscars) and more recently as an official sponsor of the Toronto International Film Festival.

With a strong presence at major star-studded events such as the Grammy Awards, Golden Globes and Césars, internationally renowned celebrities such as Madonna, Sharon Stone, Marion Cotillard, Penelope Cruz, Aishwarya Rai, Zhang Ziyi and Jennifer Aniston select Swarovski for their red carpet appearances, and this of course helps enhance the brand of Swarovski even further.

All images in this article are courtesy of Swarovski.

Co-branding: Martini and D&G

Today I want to talk about an interesting example of a product launch video that I've spotted through the Facebook feed of Jean-Gabriel from FreshUp.TV. For branding addicts, its main attraction lies in the fact that it has included several impressively powerful branding techniques in one go: co-branding (or brand partnership), celebrity endorsement and even country branding.

Brand partnership

The product in question is Martini Gold by Dolce & Gabbana that has been co-branded by two iconic Italian brands. Here's an ad that accompanied the product launch:

As I've already written in my article Brand partnerships,

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.

In the case of Martini and Dolce & Gabbana, the co-operation between the two brands has been long-lasting and included such initiative as opening Martini bars within Dolce & Gabbana boutiques in Milan and Shanghai, and even a line of suits by D&G called Martini. The launch of Martini Gold is yet another step that strengthens both brands co-operation even further.

Celebrity endorsement

Italian actress Monica Belucci has starred in the Martini Gold ad acting as a brand ambassador.  In addition to that, the ad has been directed by a famous film and music video director Jonas Åkerlund who himself has a celebrity status.

Country branding

One of the main aims of this video is to evoke the origins, culture and lifestyle of Italy.  Italy is also highlighted by the La Dolce Vita style of the ad, and a mix of Italian style and fashion icons. Monica Belucci embodies Italian cinema, and both Martini and D&G represent refined Italian style. The scenes of Rome highlight the Italian cultural background of the product even further.

For many brands, especially those with a lot of heritage and strong cultural roots, associations with their home countries can enhance the overall brand image and give it a special zing.  Look at how Dolce and Gabbana stress the importance of Martini Gold being a truly Italian brand:

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

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.

Italians, Paris Hilton and Prosecco

This post discusses the D.O.C.G. quality assurance label used for Italian wines, and discusses whether it will have repercussions for the Paris Hilton Rich Prosecco brand.

Democratic luxury: benefits of trading down during recession

The summer 2009 Matthew Williamson collection for H&M is not a new trend: luxury fashion houses have cooperated with high street labels for quite some time already. The blog post discusses advantages of such cooperation for both parties, and lists examples of Matthew Williamson for H&M and Sandrina Fasoli for Mango.