brand partnership

Tribal marketing for Generation Y

A couple of months ago, I attended a book launch event dedicated to the recent publication of How Cool Brands Stay Hot by Joeri Van den Bergh from Insites Consulting and Mattias Behrer from MTV Europe. ((How Cool Brands Stay Hot, Kogan Page, 2011))  The book gives an insight into Generation Y, or Millennials: teenagers and young adults born between 1980 and 1996 .  Web savvy, wary of marketing “tricks” and highly authentic, they are “on a mission to become special and unique.” ((ibid., p. 3)) Besides, these youngsters are just beginning to shape their relationships with brands, and provided that you get your brand on their radar screen, and make it appealing and “cool”, chances are, they will like it for quite some time to come. This is why it is so important for any company that wants to market to Generation Y, to know what it takes to become a truly cool brand.

The authors have structured the results of their detailed 5-year long research, that I finished reading a couple of days ago, around the so called CRUSH model.  It is an acronym of Coolness, Realness, Uniqueness, Self-identification with the brand and Happiness, which are the main requirements for any brand that aspires to be considered “cool” by youngsters. Whereas the book is packed with useful marketing advice (did you know, for instance, that teens actually do trust their parents more than one could ever imagine, and that they don’t like to buy "ethical" and "green" products because they are fed up with marketers telling them what’s ethical and green?) from beginning to end, I’d like to share with you the main findings about the part on teen self-identity (The S in the Crush model). It resonated with me particularly in view of my recent talk on Personal Branding.

 

How big is the role brands (especially clothes, accessories and gadgets) play in constructing self-identity and personal brands? To answer this question, it's important to point out that identity is always connected to the body, “Identity is always about the body, the bodily states and desires of being, becoming, belonging and behaving.” ((ibid., p. 148)) That’s why fashion, and tatoos play such an important role in self-expression. What your customer wears or carries often becomes part of his or her personal brand.  And because personal brands are shaped and influenced by the external social environment (which forms the so called social identity), it’s extremely important for marketers to understand the dynamics of self-identity formation.

 

Perhaps one of the most profound lessons for anyone who wants to understand consumer dynamics of Generation Y, is to step away from traditional psychographic segmentation which is a "method to simplify reality by assigning individuals to groups of homogenous persons who share the same characteristics. In reality, the members of segments are not connected to each other and take no collective action." ((ibid., p. 157))

 

Instead, it’s important to explore the teens’ search for a lifestyle that enables them to become part of a “tribe”, express their self-identity and construct their personal brands.

 

The concept of tribal market segmentation becomes easy to grasp if we take into account the following main elements of identity formation:

 

-The personal identity: the identity a person believes he/she has

-The social self: the identity he/she has in the eyes of others and that can be discovered only through social interactions. Given that there may be several social groups each person interacts with, that person can, in fact, has several social identities.

-The aspired self: the ideal identity a person would like to have

-Non-identity: the non-wanted self  ((ibid., p. 150))

 

Tribal marketing explores relationships that teens have within networks of heterogeneous people linked by a shared passion or emotion. For a very detailed, and very useful example of tribal mapping within Gen Y, have a look at the image below.

 

The table summarizes results of joint work between Insites Consulting and MTV Networks. The horizontal dimension of the image represents “me”-centered tribes on the right, and “we”-centered tribes on the left. The vertical dimension groups extroverts above and introverts below.

 

As a result, each of the quadrants in the model groups youngsters whose identities have a lot in common. For instance, the upper left quadrant groups people who like to react to the world around them through their own creativity. Indie kids, rockers and new ravers are part of this group, for instance.

 

What kinds of insights does the tribal marketing approach give to brand builders?

 

First of all, it’s important to understand that it’s rarely possible to appeal to the entire Gen Y with a single brand. If may be, however, possible to have several brands at your disposal within the same company.  Nike Inc. has understood it well by using two different brands — Nike and Converse — to appeal to different tribes within Generation Y. The Nike brand, which focuses on athletes, appeals to the upper-right quadrant (status-seeking youngsters). This tribe will find Nike’s notions of excellence, importance of fashion highly appealing. Converse’s fans — mostly in the upper left quadrant — will appreciate the simplicity, creativity and art: values that fuel the Converse brand.

 

Another interesting example described in the book illustrates how to create appeal across H&M's Generation Y customers. ((ibid., see p. 168))

 

Second, do not structure your brand communications around the tribes that are most located on the outskirts of the tribal model. This means that whereas the “mainstream” tribes (located close to the center of the model) are relatively “safe” to portray in your communications, the outskirt tribes, such as gothics, may be a stretch, because they are often perceived as non-identities to many tribes, especially diagonally opposite. So, if you consider running an ad in which a pair of gothic youths drive your new funky car brand, think twice and consider a pair of fashionistas instead.

 

Third, explore a close fit between online and real life identity formation. Notice what different tribes like to do online, and you should not be surprised to find out that fashionistas like to watch glam YouTube videos, whereas introverts are big time into games.

 

The word "schmoozing" spotted in French

Finally, I don't have to explain to my French-speaking friends what the word "schmoozing" means! :) Well, at least I can from now on refer them to an article that appeared in this week's edition of Références, a Belgian weekly for employment seekers and career-focused individuals.

Schmoozing: mode d'emploi(s)

The article focuses on the kind of "schmoozing" (particularly, its online variety) one does to find a job. For me personally, and of course, for SCHMOOZY FOX as a company, this word has a broader meaning.

Ladies and gentlemen, schmoozing is HIGH POWER NETWORKING.  The kind that involves co-operating, building relationships and closing win-win deals.

All of this with the objective of enhancing the client's product or service brand.

In my brand strategy work, schmoozing capabilities come in very handy when assessing my clients' potential and spotting opportunities for brand partnerships, brand endorsements and co-branding.

So, from now on, vive le schmoozing!

schmoozing definition

Source: Schmoozing: mode d"emploi(s) by Rafal Naczyk in Références, 19.02.11

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

A new kind of brand ambassadors: famous bloggers

I've written about brand celebrity endorsements in the past. In one of my articles, A new kind of brand ambassadors: famous entrepreneurs, I talked about the growing tendency among brands to form partnerships with famous people other than actors and musicians. A whole new kind of brand ambassadors is emerging. In this article, I talked about a Swiss watch brand Maurice Lacroix choosing Wikipedia’s founder Jimmy Wales as its brand ambassador.

And here’s another interesting example. H&M, a Swedish fashion brand whose strategy revolves around frequent brand partnerships (usually, with famous designers and performers), has launched a fashion collection co-branded with a fashion blogger Elin Kling.

It seems that brands are moving away from associating themselves with famous and glamorous people towards working with those who have a lot of personality.

As we've seen in the story of Ice Watch, its founder  went a step further, hiring an unknown girl from a Dutch village as the face of the brand.  There's surely a tendency emerging in the world of marketing and branding, where companies want to connect to their customers in more genuine ways, moving away from celebrity status towards something more real, and yet convincing and glamorous.

Another example of co-branding: Veuve Clicquot and DKNY

I've written extensively on co-branding and brand partnerships already, and am always on the lookout of interesting examples in this area. Today, I'd like to share a recent example of a brand partnership between a Champagne brand Veuve Clicquot and a fashion brand DKNY: co-branded boots.

dkny-veuve-clicquot-rubber-boots

The funky product concept and design play an important role in spicing up both brands, and create good publicity in fashion magazines and online.

Note that both Veuve Clicquot and DKNY are part of the LVMH group. It's a smart move on the part of LVMH as it's promoting both of its brands at the same time.  Initiated within such multi-brand groups as LVHM, such co-branding initiatives can be used to revitalize tired brands by creating partnerships with more successful brands from the same portfolio.

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:

Anders Wall, CEO of Biomega, talks about city biking as a new luxury

The MN bike by Biomega

Having talked about square wheels in the previous interview featuring a Swiss watch brand Maurice Lacroix, today our focus is on round wheels -- a Danish brand of bikes called Biomega. Launched in 1998 by an industrial designer Jens Martin Skibsted, Biomega is a company that has been building its brand through a rigorous strategy of brand partnerships. Through co-operation with PUMA and such world-famous designers as Marc Newson, Ross Lovegrove and Karim Rachid, as well with its bikes featuring in permanent collections of art museums, the brand of Biomega has occupied a very interesting niche on the bike market: a stylish, funky and functional luxury item for use in the city. Today I am happy to host Anders Wall, CEO of Biomega who shares his views on city bikes and funky brands.

Anders Wall

SCHMOOZY FOX: Anders, the name Biomega sounds a bit like it could be a brand of healthy food or vitamins. Could you tell me the story behind the brand name?

Anders Wall: Indeed, some people also think that there is something “bio” about it. But in reality, the name was conceived as “bi omega” which visually would look like this ΩΩ. Two letters "omega" put together do look like a bike.  Later on the name took a life of its own, and there’s no such association in customers’ minds.

SCHMOOZY FOX: Did Biomega follow a strategy of brand partnerships and co-operation with famous designers right from the beginning?

Anders Wall: Jens Martin Skibsted, the founder of Biomega, has designed most of the bike models. But indeed, Biomega was set to build its brand through partnerships with such famous designers as Marc Newson early on.

SCHMOOZY FOX: What’s the brand philosophy of Biomega? How are you reinventing the wheel?

The Boston bike

Anders Wall: We think that a bicycle is often portrayed as a product consisting of many spare parts, rather than a complete whole. The “spare part” brand discourse is very typical to most bike brands, and it’s very rare that they address the values and needs of consumers other than technical performance. For Biomega, a bike is based on the concepts of integration, drivability, durability and visibility. By integration, we mean that a bike is one whole that can bring a lot of aesthetic value to the owner. By drivability, we mean that a bike should be easy to drive, fast in acceleration and quick in braking. Durability refers to the fact that our bikes will last. All of these qualities are important to keep in mind when a new model of Biomega bike is conceived and designed. And finally, visibility means that our bikes must make both the product and the user noticeable. Our products stand out in the crowd, and so does the person who's using the bike!

SCHMOOZY FOX: Why do you refer to Biomega bikes as New Luxury?

Anders Wall: Bikes and biking as a process in general is hardly ever associated with luxury. Biomega does add luxury to bikes, primarily through superior design. What’s important is that Biomega bikes are meant to be used only in the city. Through their ease of use and funky design they in fact compete with cars! In this sense, owning an astonishing bike with luxurious design as opposed to having to sit in traffic jams becomes a true luxury.

SCHMOOZY FOX: How much does it cost to own such an object of new luxury?

Anders Wall: The majority of our bikes cost around 1.200-1.500 Euro. Our special models like the MN is more expensive (prices start at around 3.500 Euro). Our most exclusive bike, a carbon version of the MN with special components, is sold at the price at 6.500 Euro. Our bikes are distributed through design stores,  as well as selected bicycle stores.

SCHMOOZY FOX: Besides co-operation with famous designers, Biomega also went into brand partnerships. Could you speak about Biomega’s partnership with Puma?

Anders Wall: We have worked on a brand partnership with Puma for five years now. The brand partnership was based on the Biomega model Boston, which was created in special versions for the Puma brand stores around the world. These Puma versions carried both the Puma and the Biomega logo, and were unique in colors. Last year, our partnership was taken further and we are now a licensee of Puma. In the coming months we will introduce a new range of Puma bicycles – 5 models in total – which have been designed and produced by Biomega. Where the previous bikes were only sold in Puma brand stores, the new range will be sold through bike stores all over the world and online. This is a very exiting new business for both Puma and Biomega.

SCHMOOZY FOX: To what extent do you think Biomega can be called a Funky Brand?

Anders Wall, CEO of Biomega

Anders Wall (smiling): I think that SCHMOOZY FOX’s definition of funky brands is very much in line with Biomega’s philosophy. We are small (there are only 6 employees at Biomega!) but a very agile company. We think we have created a great company culture and built the business through a very rigorous brand strategy right from the start. The funky aspects are certainly seen by the final customer, but only few people realize that behind this there’s a lot of very meticulous business and brand strategy work done within the company! We’re also outward rather than inward-looking, and through our brand partnerships we have achieved a global reach.

SCHMOOZY FOX: Do you bike to the office?

Anders Wall: I live outside of Copenhagen, and actually take a train every day. But once I am in the city, I of course bike! I own several models of Biomega, including the MN model. After all, apart from being a CEO, I am also Biomega’s brand ambassador, and I very much enjoy it!

SCHMOOZY FOX: Thank you, Anders!

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

A new kind of brand ambassadors: famous entrepreneurs

Jimmy Wales WikipediaHere is a photo of a magazine back page that I took this morning. It made me think of a new trend that is emerging in the area of celebrity endorsements: business celebrities as brand ambassadors. Even if you are not familiar with the term, you've most probably come across brand celebrity endorsements on many occasions.  These are short or long-term partnerships between a brand and a real person, usually a celebrity from the world of music, sports or movies. If you've seen ads with Hollywood stars next to cars, perfume or other products, then you've seen a celebrity endorsement in action.

In such brand partnerships, celebrities serve as the so called meta-brands: overarching, superior concepts that add  positive associations to other brands wanting to relate to them. For celebrities, it's also important to choose the right brands to work with, because at the end of the day, they have to pinpoint these people's personal brands.

My observation that I want to share with you today is this: most brands, especially luxury products, like to work with celebrities from the world of entertainment and sports.

However, it seems like there's a whole new trend emerging out there: celebrities from the non-entertainment world. They are not as widely known as entertainment stars, but they nevertheless have a lot of qualities that brands can tap into and benefit from. This trend is not yet very well explored by brands, it seems.

A concrete example that I want to share with you today is the recent brand campaign by a Swiss watch brand Maurice Lacroix. In particular, its brand partnership with Jimmy Wales, an American Internet entrepreneur and co -founder of Wikipedia.

The two other brand ambassadors that Maurice Lacroix chose -- Bob Geldoff and Justin Rose -- come from the worlds of music and sports, respectively. But Jimmy Wales is a businessman whose name is known to a lesser extent.

What's known much better is his non-profit foundation: Wikipedia.

What did Maurice Lacroix want to communicate by selecting Bob Geldoff, Justin Rose and Jimmy Wales as its brand ambassadors? I guess, the most important qualities that seems to unite them all are continuity, staying on course, and staying true to themselves. And of course, achieving results.

As brands look for authenticity and natural, not-too-commercial, ways of connecting with their consumers, we're likely to see more entrepreneurs, journalists, and other people outside of the entertainment world with strong personal brands, endorse products and services.

Can laptops and nail polish complement each other?

Dell&OPIBrandPartnership2 Today SCHMOOZY FOX is going to talk about brand partnerships.

This is an important topic that should be on the radar screen of young and promising funky brands. If your company is not a completely new start-up, and you have already achieved a good degree of brand awareness of your product or service in your main markets, then consider partnering up with another brand.

Why?

Well, provided you choose your brand partner smartly, this can enhance your own brand positioning, and add some nice new aspects, flavors, emotions and associations to your brand.

Some earlier examples of brand partnerships mentioned on SCHMOOZY FOX, have been the collaboration between Naked Wines & Jamie Oliver, Nike & Dizzee Rascal, as well as a celebrity endorsement of Baileys by Kim Cattrall.

Another example that's worth mentioning is the recent partnership between Dell and a nail polish producer OPI.  At first, this might sound like a strange idea: the product categories are totally different, how can they complement each other?

But Dell went for it, introducing 26 nail polish themed colors to choose from in the Dell-Design studio, a site which allows customization of laptops.

It actually seems quite logical to me why Dell went for this partnership. The main advantage is that Dell now has 26 nice and shiny ways of selling laptops to style and fashion conscious female customers. I would choose these two shades of orange that would  look very funky for SCHMOOZY FOX, what do you think?

Dell&OPIBrandParnership1

Dell&OPIBrandPartnership

The advantages of this partnership seem more obvious for Dell than OPI.

OPI also got something out of this deal, of course: getting your name mentioned on Dell's site must be a fantastic boost to the nail polish producer's brand. It looks like OPI is targeting those female business professionals who want to stay stylish at work – matching your laptop with nail polish probably seems like a cool thing to do.

But will the ladies who have just bought one of those orange Dell Inspiron laptops run to the shop to get a matching shade of OPI, or can they choose another brand's nail polish in the same color? In other words, it's not totally clear whether this partnership will boost the OPI sales in the short term. However, the possibility of long-term positive effect on future sales from raised brand awareness is strong.

So, get those brand partnerships on your radar screen, and have fun giving manicures to laptops. As long as it brings you more happy customers.

If you want to know whether a brand partnership is a good idea for your company, ask olga (at) schmoozyfox (dot) com.