brand positioning

Clearly defined brands influence purchasing decisions

running track
running track

A strong brand can benefit your business in many ways. It sets you aside from the competition. It builds customer loyalty. It eliminates search costs for people who look for products, but don't have enough time to sort through the clutter of product information available, both off and online.

One of the attributes of strong brands is that they have clearly defined positioning - a framework of associations that a brand triggers in the minds (and hearts) of those who come across it.

Clearly defined positioning is a powerful thing to have for any brand. In my own experience of working on brand positioning projects, I often notice a tendency of businesses to try to include too many associations as part of the positioning of their product and services brands, which makes the task of setting a brand aside from its competitors quite challenging.

The rule of thumb about positioning is this -- it has to be clear and succinct. Recent findings of modern neuroscience can help entrepreneurs position their brands in clearly defined ways. The brain sorts out different types of information according to whether "it has to do with knowledge (the concrete characteristics of an object, such as its name, its appearance or its physical properties), experience (which includes information about interacting with an object or idea), or emotion (the feelings, positive or negative, brought to mind by an object or idea)." ((The Business of Brands, Collective intelligence for marketing today, by MillwardBrown, p. 12))

These types of characteristics about a product or service are stored in three different neural networks. When we think about a brand in question, our brain "pulls out" corresponding information about it from each of the three networks.

So, if you develop your brand positioning around each of these 3 factors in clear and succinct ways, your customers' brains will retrieve your brand associations more readily. "In this way, a representation of a brand is no different than any other representation: one that comes together quickly and easily is more likely to influence a decision at the point of purchase." (( ibid. ))

Confused about your brand positioning? Stop advertising

If I asked you what kind of associations you had about Nutella, the sweet and gooey spread, oh so full of calories?  

Maybe you'd remember how you indulged in Nutella when you were a kid. How much fun it is for your kids. That it's an occasional treat you'd give your kids after they've eaten their dinner.

 

But my guess is that very few of you would  refer to this product as "healthy and nutritious." Fruit and vegetables are healthy and nutritious, but  sugar-packed sweet spread? Not really, even if it's made from "natural ingredients" as the ad in this blog post states.

 

In fact, I think that the extent to which it is "natural" is not the main reason why people buy it. We buy it because it's fun, period. And there's actually nothing wrong with being all about fun.

 

So, why did Ferrero (the company which owns the Nutella brand) choose to communicate something so different in its recent advertising campaign? And, as a result, went through a class action suit, having to compensate $3 mln for stating false claims about the product?

 

There may be many reasons to it, but the one that comes to my mind is that people at Ferrero simply forgot what the brand of Nutella is all about. They temporarily forgot its positioning.

 

Finding the most advantageous brand positioning is like building a good, solid foundation for your house. I do a lot of work on positioning with startups and small companies, as well as with bigger companies which are in the process of changing something -- be it their visual identity, or business strategy.

 

Big companies, too, should regularly check if their foundation is still solid. If it's still what it used to be, and if it holds the house properly.  For big, established brands, even small tweaks in positioning should never happen without rethinking the whole of the brand strategy, and possibly, changing the product itself.

 

If you have the slightest doubt whether your positioning truly reflects your main brand values, my tip to you is, stop and rethink it. Don't advertise just yet.

 

Source: The Truly Deeply blog

 

 

Belgian business magazines Trends and Trends Tendances write about Funky Brands™

Today, the Belgian business magazines Trends Tendances (in French) and Trends (in Dutch) published a story about my Funky Brands™ philosophy.  In this story, I define Funky Brands as remarkable products which stand out from the crowd due to their astonishing design and smart brand strategy. I talk about not-too-funky companies which compete solely on cost, discuss what kinds of products have the potential of becoming funky, and mention examples of existing Funky Brands -- Ice Watch, Theo, Vespa, NewTree and Mini. Below you can see an article in French which was written by editor of Trends Tendances, Camille van Vyve. The photo in the article is by Michael Chia, a Brussels-based photographer whom I interviewed before.

Perils of lifestyle brand positioning

Lifestyle and self-expression Have you noticed that more and more brands position themselves as lifestyle these days? You wander into a store thinking you’ll be checking out home decoration items, and instead, you end up browsing seemingly unrelated goods -- books, clothing, food -- at a lifestyle boutique, or lifestyle concept store. It reminds me of my my recent visit to Merci Merci, a concept store in Paris. There, you can even sit down and have a cup of coffee whilst looking at flowery aprons and dresses displayed in the shop. Another one, Cook and Book in Brussels, offers a possibility to express your artsy lifestyle by having lunch while surrounded by art and style books, which one can also buy.

 

Ways of expressing one’s lifestyle have become abundant. As far as selecting products goes, consumers are presented with endless flavors, designs and scents to choose from, mix and assemble into unique combinations which express their unique lifestyles. In fact, so many brands offer mass customization, that ways of self-expression have become all-pervasive. When so many brands are trying to tap into people’s needs for self-expression and strive for lifestyle positioning, maybe it’s time to find other ways to make your brand stand out from the crowd?

Lifestyle brands expose themselves to cross-category competition

A study published this month in Journal of Marketing (( Competing for Consumer Identity: Limits to Self-Expression and the Perils of Lifestyle Branding, Alexander Chernev, Ryan Hamilton, & David Gal, Journal of Marketing, May 2011)) concludes that by positioning their brands as lifestyle, companies “expose themselves to much broader, cross-category competition for a share of a consumer’s identity.” ((ibid.)) This goes against the widely accepted belief that lifestyle brand positioning is less likely to bring products and services into direct confrontation with competing brands.

 

At first sight, the logic of the latter seems clear. Let’s say, you are launching a soft drink in a very competitive market. How would you position it? Even if it has an amazing taste, the tendency nowadays is to avoid simply positioning it as a tasty drink. That’s just too plain vanilla. Instead, you might want to tap into the lifestyles of your consumers, trying to understand how your drink will allow them to express themselves. By positioning a drink not just as a tasty drink, but something else -- let’s say, a way to express one’s energy, creativity, sportiness, sense of achievement, etc. -- your company wants to signal that it has a great product to offer.  It also wants to avoid somebody else coming to the market with a tastier drink.

 

However, by positioning your drink as a lifestyle product, you enter into competition with other products as well -- branded and non-branded -- that compete with each other as means of facilitating consumers’ self-expression. In fact, your drink may very well be competing with a car, a mobile phone and a local trendy restaurant, all at once.

 

Competition across product categories

In the not-so-remote past, the common approach amongst marketers was to take for granted the fact that “consumers’ brand preferences are not likely to be affected by their actions in unrelated product categories and/or domains.” (( ibid. )) Drinks were positioned against competitor drinks, and cars were positioned in ways that made them differ from competing cars. In contrast to this approach, the study shows that this is no longer the case.

According to its authors, "Consumer brand preferences are a function of the activities they were involved in prior to evaluating a given brand—more specifically, the degree to which these prior activities afforded the opportunity to express their identities. ((Ibid., p 67))

In other words, consumer’s choice of a certain brand of mobile phone with lifestyle positioning can be influenced by his or her self-expression activities undertaken prior to making that choice. For instance, writing a blog article, creating a painting or sharing news with friends on Facebook could have already addressed your potential consumers’ needs for self-expression before your marketing message has reached them. In other words, self-expression is finite and can be satiated by very many different things, not only branded products.

 

What should brand managers do?

First of all, it’s simply helpful to be aware of the dynamics of self-expression among your consumers. By realizing that your consumers’ self-expression is finite, and that your brand competes with other brands, concepts and activities far from your product category, you will be well prepared to create smart brand strategies.

 

Second, rethink the lifestyle positioning of your product. Does it really make you stand out from the crowd and be truly funky? If everybody is doing it, maybe it’s time for another big thing. Like launching a really tasty soft drink.

 

 

Marketing vs. Branding

Here's a very to-the-point quote that describes the difference between branding and marketing. I found it here:   Branding helps you know what to say, and marketing provides the vehicles to deliver the messages. Just like a politician will steer any question back to the handful of key campaign points, your brand positioning statement steers all advertising, website content, brochures, public relations, and face-to-face selling to your firms competitive advantages.

Funky personal branding

 

Yesterday I conducted a Personal Branding Masterclass in Brussels. The event was organized in co-operation with IE Business School, my Alma Mater where I completed International MBA in 2007.

My goal was to show how my approach towards building product and services brands can be applied to building personal brands.

But what is a personal brand, anyway? In my presentation, I defined it like this:

 

Personal branding is a framework of associations, values, images and actions through which people perceive The Unique You.

In other words, it's your unique value proposition, something that makes you stand out from the crowd, and something by which others can remember you.

In my presentation, I mostly focused on the advantages of good personal branding in professional life, and demonstrated several important steps that one would need to go through in order to craft a strong personal brand.

I spoke about how personal brand audit, brand positioning and brand promotions -- some of the steps that I use in product brand strategy -- could be used in the area of personal branding. To give an example, your LinkedIn professional headline is a very good place simply made for a personal brand positioning statement. Most people do not use it to their advantage, listing their job title, rather than their Unique Value Proposition, in their professional headline on LinkedIn. Look at my own example of my personal brand positioning statement:

 

As you can see, my job title is listed under "Current", whereas my professional headline is all about my unique value proposition. In 120 characters (that's how much LinkedIn allows!), I said a lot of things that summarize a lot of important facts about myself:

  • Passionate = I am definitely passionate about my profession!
  • European = this shows both where I live and the geographical scope of projects that I work on
  • Funky branding diva: this one catches a lot of attention on LinkedIn! The "funky branding" part refers to my Funky Brands™ philosophy, as well as my blog about Funky Brands. And, yes, diva! I don't need to explain this one, do I? :)
  • The next phrase (Offering creative, web-enabled strategies to position and build your brand) also contains a lot of useful information about my personal value proposition. It shows that creativity is my strong point, that I know the web, and am strategic. And of course, I know how to position, build and nurture brands!

I gave several examples of people with strong personal brands, among which was Jean-Pierre Lutgen, with whom I had published a Funky Brand Interview about Ice Watch.

For more information about this event, search #MyFunkyBrands on Twitter, and visit my Facebook fan page. You can also read my article Several degrees in one personal brand published by The Personal Branding Blog.

The Zuckerberg brand

zuckerbergDo entrepreneurs have to manage their personal brands separately from the brands of products they launch? This is the debate that I've seen happening recently, and answers to this question differ in each individual case. What does seem clear is that whether they want it or not, CEOs of big companies have their personal brands under scrutiny 24/7, and they should take this fact seriously.

A concrete example I want to talk about today is Mark Zuckerberg's personal brand.

Facebook is known pretty much by everyone on planet Earth. Facebook's business model relies on people to trust it with their data. And now, here's something important to remember: if they trust the CEO, they're much more likely to trust the platform.

Mark Zuckerberg, Facebook's founder, has been enjoying a lot of media attention lately, most of which has boosted his personal brand tremendously. At the end of 2010, Time Magazine named him Person of the Year.

This is a positive development for Zuckerberg, especially since some predicted a painful PR disaster for him after release of The Social Network movie.

In reality, the movie has had a completely opposite effect on Zuckerberg’s personal brand. Instead of being positioned as a thief of business ideas and a sexist jerk, Zuckerberg has come out as a talented entrepreneur and a young prodigy.

This personal brand positioning is extremely valuable for someone who runs such a sizable company as Facebook. Moreover, as Lesley Stahl has pointed out in her recent interview with Zuckerberg, half a billion people who give their information to Facebook, do feel that they have a right to know more about him.

The 60 Minutes interview on CBS did exactly this: it allowed Zuckerberg to communicate who he, Mark, not just Facebook’s founder and CEO, really is. And he did it in a way that benefitted the Facebook brand, too.

Here is a recap of what has helped Zuckerberg’s personal brand positioning as a successful young entrepreneur:

1) The Social Network movie

As mentioned above, the movie has had a positive effect both for Facebook as a company, and for Mark Zuckerberg personally. By the time the movie was released, it had a hugely responsive audience at its disposal -- the audience that was already brand aware. Speaking in branding terms, all those Facebook users who went to see the movie became brand loyal even more.

2) Friendliness to the press

If you haven’t yet watched the CBS 60 minutes videos, you should, as they can give a good lesson on how to handle journalists’ questions. Mark Zuckerberg was relaxed, joked about the movie (“they got the T-shirts and sandals right!”) and managed to avoid answering difficult questions (“How could you rate yourself as a CEO?” asks Leslie Stahl, to which Zuckerbergh responds, “You can never win by answering this question” and then proceeds to giving an example of how he decided not to sell Facebook to Yahoo for 1 billion dollars).

3) Philantrophy

Zuckerberg has joined the Giving Pledge set up by billionaires Warren Buffett and Bill Gates and has agreed to give away half of his wealth to good causes.

These days, it’s not Nokia that’s connecting people, it’s Facebook. Somehow, 500 million active users can’t be wrong -- Facebook has become an important part in our daily lives. And trusting it with our personal information gets a bit easier if we trust the guy who's created the platform.

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.

True luxury: inclusivity vs exclusivity

I've just come across a series of thought-provoking posts on springwise. Their common theme is brands trying to build loyalty with online tools. Whereas some of them do it in a democratic and "inclusive" way, others opt for "exclusivity". Let's see how this might result in their brand positioning. One article describes a hotel in NYC which has set up an online forum for its guests. The Pod Hotel offers budget accommodation for young travelers, and the forum is a brilliant solution to help them connect to each other in real life, and have fun together in NYC. It clearly addresses the pain particularly of those who travel alone and don't know anybody in New York City.

Snapshot of Pod's online forum for registered guests

This is a brilliant idea, and The Pod Hotel is surely on the good track of creating some valuable loyalty with this simple online solution.  My advice is that it should definitely do a bit more to make this feature known on its website. As it stands now, the site fails to communicate it. I don't know if it's a planned move or not. If yes, I suppose that the reason might be that the hotel works at capacity most of the time, in which case the forum is only there to trigger repeat visits rather than recruit first-time customers.

Another idea featured on the same site is an online social network launched by the airline KLM. The online network is not targeted at all KLM's customers, but only frequent flyers.

For the moment, KLM has set up two online communities -- one for China, and another one for Africa. Essentially, the main target is entrepreneurs who all share the same challenges working in emerging markets.  They can discuss issues of common interest and network online, which triggers encounters offline.

KLM even organizes offline networking events for the online community members both in China and throughout Africa.  KLM says that its online social community is "exclusive" and by invitation only.  My guess is that this exclusivity is tied to KLM's reward program which actually makes sense.

Think of it: the more you fly, the more chances you get to meet like-minded entrepreneurs. And the better you should get rewarded by an airline company for your loyalty.  So, this kind of "exclusivity" achieves both goals -- it rewards frequent flyers whilst giving them a possibility to socialize.

A snapshot of KLM's online community for frequent flyers

I also want to address another kind of "exclusivity" which rarely does anything good if a brand seeks positioning in the luxury or affordable luxury segments.

I've come across many brands, especially various online shops, which try to create an aura of exclusivity out of .... well, pretty much nothing.  I find it amusing when some freshly launched site writes  me to become their member "by invitation only"and start shopping there.

In this respect, the example mentioned on springwise is Claseo, a recently launched "luxury" label. Unfortunately, it's not possible to have any idea about how luxurious its designs are because you can't enter their site. The reason is that the site is "exclusive" and by invitation only.

Snapshot of the invitation-only site of Claseo

I think it's counterproductive to seek positioning as a luxury brand through such self-limiting "exclusivity".  Whereas this might be feasible in instances when brand equity is already at its peak, this move is rarely a good solution for a start-up.  This is particularly true for web start-ups.  Building a user base is of ultimate importance for them, and certainly a key to creating a strong brand.  I have written and spoken about this on several occasions.

Looking at three examples above, the "inclusivity" of the budget hotel in New York in fact makes it truly exclusive. By solving the real need of its customers -- a simple human desire to socialize -- the hotel succeeds in occupying a very lucrative segment of affordable luxury.  The same refers to KLM's online social network for frequent flyers, which helps entrepreneurs connect and socialize in real life.

Funky brands are smart because they understand what true luxury is, and although it may sound counter-intuitive, in many cases being inclusive and democratic, rather than "exclusive", is what really helps build a great brand!

Carrefour needs brand repositioning

In Belgium, the chain of Carrefour supermarkets is in trouble.  Fourteen out of fifty six supermarkets are to be closed down due to miserable financial results (if you read French, check out this article in Le Soir) which will result in major layoffs of staff. The mentioned article in Le Soir, as well as this very insightful blog post, suggest that one of the main reasons for the problems Carrefour is experiencing on the Belgian market is unclear brand positioning.

I fully agree with this. According to the blog post on Caelum Novum, the Carrefour brand has lost (or perhaps never even had from the beginning) the "French spirit" behind it. Perhaps it's due to the fact that Carrefour has entered the Belgian market by acquiring a Belgian chain GB, and didn't tap into the French gastronomic tradition at all. It is possible that in the minds of consumers, it still has the "aura" of GB -- not even the rather unglamorous interior has changed that much since the name changed to Carrefour.

Some international brands choose the so called "glocal" (global but local) strategy when they launch their presence in new markets. But there should always be the right balance between how much of the "local" needs to be infused into the brand and how much of the original heritage should remain alive. It seems like Carrefour should at least bring in some more of the French gastronomic heritage into its brand, among a long list of other things, to make its revival possible on the Belgian market.

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.

How funky brands can be profitable

D&Gperfume In one of my previous entries, called Funky Brands Defined, I published a list of attributes shared by most Funky Brands™.

An important one is the fact that they are not driven by innovative and creative ideas alone, but are or have the potential to be profitable. This, of course, requires a good deal of  business development and brand building work done.

In today's post, I want to talk about how your brand can benefit and become profitable from mass luxury brand positioning.

Mass luxury (often referred to as affordable luxury or new luxury) brand management essentially combines characteristics of building brands that have the luxury and exclusivity appeal, with techniques that can lead to relatively high sales volumes.

My marketing professor at ESSEC (a Paris-based business school famous for its luxury marketing program) was a former Armani guy. He certainly knew a lot about sustaining those "old luxury" brands like Chanel and Gucci (and Armani, of course). But he was nevertheless fascinated how some innovative companies managed to combine classical Kotler marketing with  the know-how of luxury brand management by building extremely funky brands in the mass luxury segment.

Some of these brands were created completely from scratch (for example, Coach and Victoria's Secret in the US, Agent Provocateur in the UK, and a Dutch brand Marlies Dekkers whose founder spoke in an interview on this blog), and others were born under the umbrella of already existing "true luxury" brands (for instance, Armani Exchange as a modest brother of the brand Giorgio Armani).  Over the past decade or so, many brands were launched to satisfy a desire for a better lifestyle expressed by wealthier middle class eager to splash out on previously unaccessible items.

So, what can you learn from mass luxury brands in order to make your brand profitable? You'll be surprised how many potentially funky start-ups fail just because they are disconnected from their potential customers. So, the most important rule of thumb is that you gotta get to know your consumers, their lifestyles and their desires as much as you can.

Stop for a moment doing this tedious market segmentation based on geographical location, age and gender. This stuff tells you nothing about your consumer's deep emotional needs and desires. Unless you've understood what emotional connections they can make with the products you sell, you'll be wasting your time.

Besides that, keep in mind the following factors which, in my view, may trigger consumers' interest in purchasing your funky mass luxury goods or services:

  • The lifestyle factor: Whereas splashing out on a single Gucci outfit is an extremely rare occasion for most people, and buying a Lamborghini is simply out of the question, a sizable market out there still wants to have a luxurious lifestyle. "Luxurious" can mean different things for different customers, and the trick is to find your loyal segment for whom your product will be a luxury. The right combination of such items as furniture, consumer electronics, food and drink, beauty products and fashion can do wonders and make our lifestyles luxurious and enjoyable. Not every item in your customer's home has to be of super funky design and great quality, but make sure your brand can end up on your customers shelves!
  • The self-worth factor: people appreciate goods and services that can contribute to their enjoyment of life (e.g. high quality perfumed candles, a meal at a gastronomic restaurant, or a visit to a spa) and feeling of self-worth. Do you know what contributes to the feeling of self-worth within your customer segment? If not, the first step towards making profits is to find that out fast and act on it.
  • The funky factor: people like standing out from the crowd, and making a statement about who they are. They often express themselves through the clothes they wear, or items they use (computers, phones, cars).  If your customers have created emotional connections with the products you sell, and even made them part of their personal brand, you've for sure kept the funky factor in mind successfully! Again, if you know how the attributes of your brand can enhance the funky factor of your customers, you've certainly moved forward towards a beefed up bottom line.

Mass luxury is the most profitable segment of many markets because attractive margins can be combined with sales volume. But the challenge is, mass luxury brands do not sell themselves . They are driven by hard-to-define factors like fashion, word-of-mouth, and constantly evolving preferences of your customers. If you've managed to apply a rigorous framework to identify these factors, and closely monitor them, you'll certainly be on the path towards making sizable profits and building funky brands.

Finally, a good article on the subject that I can recommend is "Luxury for the Masses" by Michael J. Silverstein and Neil Fiske, published in Harvard Business Review in April 2003. Have fun learning the tricks of the funky brand trade!

Funky shoes for funky people: Camper


Girls love shoes. In my case, this is an understatement of the century. I sometimes even dream about shoes. And, as any other girl, I have to have lots and lots of them to make sure they match every possible outfit I can think of. But I am not the kind of woman who's crazy about sky-high heels. Well, I've got several pairs like that of course, for special occasions, but I am more into shoes which make me feel connection to the Earth, enable me to actually walk, and contribute to my sexy and trendy look.

In fact, it's not that easy to find such shoes. Think about it – finding a pair that is funky, has heels (sometimes) and enables you to walk at a normal human pace rather than move at a speed of a snail seems a bit of a challenge. But last weekend a Spanish friend of mine walked through my front door wearing a pair of blue-heeled funky shoes. When I looked at them, I recognized the brand immediately: Camper, a cool and edgy shoe producer from Mallorca.

How could I have forgotten about Camper? It is one of the few brands that can tick all the boxes of my shoe requirements. Three years ago, a very fashion-conscious friend of mine who lives in Berlin took me on a shopping tour spree in the city. Our first destination was a Camper store, and it almost turned out to be our last destination as well, since we just couldn't leave it for a long time. And it wasn't just for the cool shoes. The store itself was a great place in which the Mediterranean spirit of Camper's Mallorcan origins mixed well with the unique creative spirit of Berin. I left empty-handed though, just because my size of the shoes I liked was sold out.

Later on, during my MBA studies in Madrid, Camper was occasionally mentioned in my marketing and strategy classes although we have unfortunately never discussed the company in detail. It was mostly Zara that was brought to our attention again and again, as an illustration of a successful Spanish brand, but somehow, Camper was left out.

And that's a pity. Because Camper, launched in 1975 in Mallorca, has managed to create a very distinctive brand identity based on fun, creativity and spontaneity. It would have made a great MBA case on how to create and manage a successful brand. Camper is modern, trendy and just....lovable. No wonder it has so many fans on Facebook, and rightly so!

First, there is superb quality. My friend, the owner of the blue heels, says she's had her Campers for 7 years with not too much change to the original shape and color. Second, there's funky design. Third, Camper shoes have managed to communicate well its dreamy and exotic Mallorcan origin. It is, let's agree, quite refreshing, especially for the inhabitants of grey and cold parts of Europe. Finally, Campers are worn by fashionable, funky and REAL people. These people are busy individuals, like you and me, but yet they are able to slow down, take it easy and enjoy the moment. After all, the company's great motto, “Walk, don't run” rightly pinpoints the necessity of slowing down in our often frenetic and busy lives.

Freedom, being down-to-Earth, creativity, surprise and spontaneity are the main brand values of Camper shoes. Pleasantly surprising its customers is one of Camper's values that draws numerous fans into its stores (and online) back and again. Often, this is demonstrated through spontaneous partnerships with artists and designers -- check out, for example, Camper's Together initiative at http://www.camper.com/together/en/ which focuses on collaboration among various designers in order to create unique shoes.

Camper is a funky company that has embraced the importance of brand positioning. Recently, it has invested into e-commerce which has allowed it to take better control of the brand evolution in the online world. Lucky are those people who are confident enough to buy shoes online without trying them first. As to myself, although I love shopping online, I usually stay away from buying shoes. I guess I'll just wait for Camper to open up a shop in Brussels some time soon!