brand strategy

How to brand a branding consultancy: SCHMOOZY FOX is featured in a new marketing book published by Routledge

Brand Mascot book cover
Brand Mascot book cover

A new marketing book “Brand Mascots and Other Marketing Animals", edited by Stephen Brown and Sharon Ponsonby-McCabe, both professors at University of Ulster, Northern Ireland, has been published by Routledge. The good news for me is that a whole chapter of this book is dedicated to the evolution of SCHMOOZY FOX's brand. I co-wrote this chapter in partnership with Dr. Adriana Campelo, a marketing lecturer at Cardiff Business School. The book is dedicated to an interesting strategy of using brand mascots to build a brand. Other brand mascots described in the book are Hello Kitty, Angry Birds, Mickey Mouse, and others.

Routledge is a global publisher of quality academic books, journals and online reference.

The press release with more details can be found here.

You can also read my past articles about brand mascots here:

Brand mascots: shiny happy creatures

Kipling customizes its brand mascot

How Google keeps its Doodle funky

Brand mascots in action: Travelocity Roaming Gnome

Online brand mascots

Why meerkats help markets

Beastly branding

Brand mascots

Kipling customizes its brand mascot

I've written extensively about brand mascots which can play an important role in making your brand funky and remarkable. I've also interviewed Kipling in my Funky Brand Interview series. Today, I will show you how Kipling keeps us all engaged in its brand by allowing artistic and creative people (like myself :) ) customize its brand mascot -- the Kipling Monkey. In the UK, Kipling has organized a Mashed Up Monkey contest in collaboration with the Dazed and Confused magazine. If you want to create a unique Kipling Mascot, then submit it for review on the Mashed Up Monkey site, and maybe you will be the lucky winner. The winner will receive worth of £ 500 Kipling goodies, have his or her design displayed in the window of Kipling's London shop, and get featured in Dazed and Confused. I've customized a monkey, and the result is a very foxy orange monkey that you can see here. Unfortunately, I can't submit it for the competition as I am not a UK citizen, and don't qualify.

 

As I wrote in the Funky Brand interview with Kipling, innovation through collaboration with artists lies at the core of Kipling's brand strategy. Allowing artists and creative people to customize its brand mascot is yet another step which supports this strategy.

In France, Kipling has collaborated with 10 designers and stylists who have customized the Kipling Monkey.  All of the customized designs will be displayed at the Galerie de la Tour in Paris from June 1st till June 26th. The proceeds from this exhibition will be donated to Red Cross in Japan.

 

SCHMOOZY FOX in FT's Business of Luxury edition

On June 6, 2011 he Financial Times' Business of Luxury supplement featured an article about diffusion brands and affordable luxury (you might need to register with FT to view the article). The article addresses benefits and possible disadvantages of introducing the so called diffusion brands -- a strategy often used by luxury brands to cash in on their well-established image and boost revenues by positioning a new, more democratic, child brand as affordable luxury.  An example of this strategy is the luxury brand Armani launching its more affordable diffusion brand Armani Exchange. I was interviewed for this article, and you can read my views there. Whereas launching affordable luxury brands as diffusion lines is often practiced by luxury companies, creating an affordable luxury brand from scratch is also possible, and in many cases very successful. An example is Victoria's Secret in the United States.

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.

 

 

Why marketing folks like marketing frameworks

In this video, Dan Ariely, a behavioral economist and author of Predictably Irrational (a great read), talks about marketing frameworks. He gives an example of a marketing class that he once taught to a group of executive MBAs at MIT. It's a rather entertaining example, and I am sure that many of you will find it amusing. Enjoy, and have a good weekend.  

Country branding: Belgium

My last Funky Brand Interview with the founder of the Belgian brand BShirt was an example of what I would call country branding in action. Associations, concepts and even stereotypes that are consistently attributed to a country can form a country's brand.  Country branding initiatives are becoming increasingly popular around the world, with governments spending sizable budgets on shaping and promoting a desirable country's image to the external world.

 

Sometimes, brands tap into brand associations of countries where they originate, and use them to their advantage. BShirt has based its concept on the brand of Belgium.  Many Italian fashion and accessories brands use a "Made in Italy" statement as a proof of artisanal quality and sense of style.  French perfume brands almost always remind us that they are, in fact, truly French creations.  In product branding which uses countries' images to support its positioning, a country brand becomes a meta brand -- an overarching, superior concept that adds usually positive associations to other brands that want to relate to it.

 

Speaking again about Belgium and its brand, let's take a step further away from the repetitive beer and chocolate (though I must say, it's all great stuff brought to perfection). For me personally, Belgium is all about design. I am glad that this brand quality of this country was stressed during a recent design week in Milan, during which a team of Belgian designers presented their work under the slogan Belgium Is Design.

Design thinking & funky brands

I've recently come across an article by Dominic Basulto, Can design thinking save the economic dinosaurs? The main points that Basulto talks about reminded me of what I've said in my two previous blog posts, Astonishing product design and funky brands as well as Dinosaur brands.

Basulto discusses the concept of Design Thinking in relation to "dinosaurs" -- industries such as the car industry, newspapers and magazines, healthcare providers, utilities, and the cable TV industry. Dinosaurs frequently inject a dose of funk into their brand through design.  Often, we see revamped sites, contemporary offices and funky stationery.  In fact, dinosaurs like design -- it allows them to express a certain degree of creativity without changing their business as usual too much.

 

However, most dinosaurs have an enormous need for change, and often they are unwilling to admit this to themselves. That's why they forget the "thinking" part.

 

Take the newspaper industry, for example. Instead of radically re-thinking what it means to be a content provider in the digital age, it is far easier to focus on "making things look pretty." (Quote from this blog post)

 

Dinosaurs don't just need to change their logos, they need to think in terms of an overall brand strategy. For more on this, see my post Need rebranding? Don't just change your logo, think brand strategy.

Interplay between brand strategy and innovation

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

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

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

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

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

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

 

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

 

 

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.

TechCrunch Europe republishes my article about Groupon

On March 2, 2011, Tech Crunch Europe, one of the most watched tech and web blogs globally, published my story about the branding aspects of Groupon, which originally appeared on this blog under the title The dangers of Groupon for your brand, and its own.

For me personally, the most exciting part of being featured on TechCrunch is the heated debate that my article has sparked. To wrap up my reaction to this debate, I've posted this comment:

Thanks for all your comments, everybody. To wrap it up, the main purpose of the article was to analyze the consequences of advertising on Groupon for SMALL BUSINESSES, rather than discuss Groupon's advantages or disadvantages for the final consumer.
As small businesses rarely have any brand and marketing strategy know-how in house, they simply don't give much thought to online promotions, and their consequences in terms of decreased brand value, increased expenses and an inability to meet all this capacity due to promotional stunts on Groupon.
I don't doubt that Groupon has had a great business idea and made a fortune fast. But brand building is a very complex and often lengthy process -- it doesn't happen overnight. Also, brands do not just happen by themselves, you have to nurture and sustain them. This is why, in order for its business to continue being profitable and successful in the future, Groupon needs to start thinking how to create brand value vis-a-vis all of its players -- not only us the final customers, but also small businesses. To summarize, Groupon has to begin thinking in terms of BRAND STRATEGY.
If you want to dig a bit more into the subject of brand building dynamics in the online environment, here are a couple of other articles that I wrote on my own blog that will be interesting to check out:
http://www.schmoozyfox.com/2010/01/19/smart-marketing-is-key-to-success-on-the-web/
http://www.schmoozyfox.com/2010/07/05/venture-capitalists-brand-strategy/
http://www.schmoozyfox.com/2010/02/03/is-your-brand-ready-to-go-online/
@FunkyBizBabe


"Thanks for all your comments, everybody. To wrap it up, the main purpose of the article was to analyze the consequences of advertising on Groupon for SMALL BUSINESSES, rather than discuss Groupon's advantages or disadvantages for the final consumer.

As small businesses rarely have any brand and marketing strategy know-how in house, they simply don't give much thought to online promotions, and their consequences in terms of decreased brand value, increased expenses and an inability to meet all this capacity due to promotional stunts on Groupon.

I don't doubt that Groupon has had a great business idea and made a fortune fast. But brand building is a very complex and often lengthy process -- it doesn't happen overnight. Also, brands do not just happen by themselves, you have to nurture and sustain them. This is why, in order for its business to continue being profitable and successful in the future, Groupon needs to start thinking how to create brand value vis-a-vis all of its players -- not only us the final customers, but also small businesses. To summarize, Groupon has to begin thinking in terms of BRAND STRATEGY.

If you want to dig a bit more into the subject of brand building dynamics in the online environment, here are a couple of other articles that I wrote on my own blog that will be interesting to check out:

http://www.schmoozyfox.com/2010/01/19/smart-marketing-is-key-to-success-on-the-web/

http://www.schmoozyfox.com/2010/07/05/venture-capitalists-brand-strategy/

http://www.schmoozyfox.com/2010/02/03/is-your-brand-ready-to-go-online/

@FunkyBizBabe "
Interestingly, yesterday Mashable published an article about New York Times's launch of a Groupon-like daily deals service. New York Times is said to be concentrating only on the high end products and services offered by New York Times's advertising partners. Do you think the focus on premium products and services would be advantageous for the brand of this New York Times's service, and if yes, why?

The dangers of Groupon for your brand - and its own

Last November, Google was trying to buy Groupon for $5.3 billion, in what would have been its largest acquisition yet. To everybody’s surprise, Groupon said No.

The deal-of-the-day site, which offers one deal per day in each of the markets it serves, was launched in 2008. By the time of Google’s attempts to buy it, it was operational in 150 markets in North America, and 100 markets in Europe. Its popularity and quick growth was mainly due to supposedly big rewards for the site users, who could get access to various services (such as massage, yoga courses, meals) and products at heavily discounted prices.  It was said to be the result of “buyer power” but obviously had more to do with sales promotions for the brands in question.

I also tried out Groupon on two occasions.

Once, I bought a coupon for a massage at what was presented as a Brussels-based beauty salon. The price I paid was 19 Euros, “instead of the usual price of 70 Euros” charged by the said salon.

When I arrived, I found out that the beauty salon was anything but beautiful itself... Just by looking at the shabby interior, I thought that I would have never been tempted to step in, let alone pay 70 Euros for an hour of massage, which is considered a price above the market in Belgium. But given the context, I was curious.

During the massage, the masseuse spent a lot of time telling me how much work she had to do after her service had been promoted on Groupon.

“And I earn nothing for working non-stop,” she kept exclaiming (the chat itself distracted somewhat from the experience).

An immigrant from Congo, she has 4 children to feed, and is prepared for a lot of work, “as long as there is work.”

The massage was okay. That is, okay for the price of 19 Euros. Unfortunately it also fixed in my mind that the reference price was 70 Euros - so I’ve never been back and the investment that the beauty salon made in sales promotions through Groupon must have delivered minimal, if any, results.

My second (and perhaps last) experience with Groupon took place this very morning, when I tried (and failed) to use a coupon that I had bought during the Christmas rush last December.

Priced only at 8 Euros, it would give me a possibility of printing an attractive looking photo album for the value of 26 Euros with a service called www.albumdigital.com.

In fact, I did want to make an album of my family’s photos and have it ready as a Christmas present.

But when I tried to use my 8-Euro Groupon coupon last December, I had to abandon this idea right away, mainly because it turned out that www.albumdigital.com only made its service available to Windows users. Being a Mac and Linux user myself, I found this slightly annoying, especially since my coupon said nothing about that.

I do have Windows on one of my computers, but oh boy, do I do everything possible to avoid using it.

So I did. Until this morning. Just because I noted down in my agenda that my lovely coupon was expiring today.

In fact, it was not even clear whether it would expire today, or on March 3rd. Look at these different dates that are totally confusing (the coupon is in French):

groupon coupon_expiry_dates

The first date (underlined in red) says that the coupon is valid until 03.03.2011. Whereas the second mention of validity refers to February 28th. In any case, I thought, it should work, because today IS February 28th.

Well, it didn’t.

After a rather excruciating experience of downloading the required software using my Windows computer and waiting, waiting, waiting while different windows kept popping up.

Finally, the software seemed ready to receive the photos of my kids. Although the software promised to organize them by date, this did not happen. I also had to click and click away to see which of my selected albums corresponded to which price, as this info was not organized properly.

albumdigital_prices

And yes, this painful process took a long time. Which means, that the value of the voucher was negative, at least for me, as I LOST a whole lot of time.

albumdigital_long_upload

And finally, after having uploaded everything, filling out a tedious form with my personal information for www.albumdigital.com, AND submitting my promotional code, I saw THIS:

groupon_code_not_valid1

I’ve written emails to both Albumdigital and Groupon, but the point is: even if I am ever reimbursed the rather minuscule price of 8 Euros that I paid to Groupon, it’s highly unlikely anyone will reimburse the value of the time I spent fighting with this technology.

Although Groupon has skimmed a market opportunity with commercial aplomb, its longer-term future is, as far as I am concerned, anything but certain:

  • Those small-scale services and product providers who promote themselves through Groupon generally have very little understanding about brand-building themselves. They don’t understand why offering their often high-value services at low prices through Groupon positions them as “cheap” vis-a-vis their potential customers. Would I go back to the beauty salon and pay them 70 Euros for what cost me 19 Euros and was portrayed as a “fair price” (rather than a sales promotion gimmick)? Nope. And I can hardly imagine anyone doing it. At best I might move on to the next Groupon deep discounter. There might, of course, be some exceptions, such as discovering an amazing restaurant where a meal cost you next to nothing, and wanting to experience it again. But for services of average quality, repeat purchases with that provider are unlikely.
  • Associating itself with low-quality service providers, such as www.albumdigital.com, does nothing good to Groupon’s brand either. In my mind, I lost a lot of precious time on www.albumdigital.com which I discovered with Groupon’s help, and in my consumer mind, the brand of www.albumdigital.com is .... well, Groupon’s brand. Whether Groupon wants it or not.
  • What’s happening here in brand strategy terms is that Groupon constantly co-brands itself with each and every service provider that features in its daily deals. So, the aggregate consumer satisfaction with, and brand loyalty towards Groupon will be a sum of all experiences its customers have while they receive their massages and buy photo albums. Every real-world discounter which plans to stay in business over the long term, however, still offers some sort of quality guarantee - think Aldi in Germany and Colruyt in Belgium.

One of the reasons why Groupon has achieved such rapid market penetration is because the small businesses which promote themselves through it have very little knowledge of business development and brand strategy - especially online. Motivated by large-scale and quick exposure to potential customers, they sell their service often at a loss - remember that Groupon makes money by keeping half of the price advertised in daily deals. So, my masseuse actually sold her services at 8.5 Euros per hour!

They also position their fragile and often unknown brands in the consumer’s mind as worth much less than the price they usually charge - and possibly little more than a ripoff. Meanwhile Groupon is generating cash by cannibalizing its own brand - hardly a recipe for long-term value creation.

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

Product placement on TV

I've already blogged about product placement in movies and novels, as well as songs. According to the International Journal of Advertising  ((International Journal of Advertising, 2008, 27 (4), pp. 495-509)), “Although brand appearances in popular culture may be motivated by creative considerations, such as the desire to lend verisimilitude to a drama or a novel, when such references result from commercial considerations (i.e. brand owners are charged for brand’s appearance) the practice is considered brand placement.”

As far as TV goes, brand placement has been a more rare occasion there. After all, TV has always had an opportunity of interrupting any program by a series of ads.  However, ad spend has decreased over the years, with advertisers increasingly aware of the fact that TV viewers simply "switch off" during ad breaks, which essentially means money wasted on ad production and placement.

Product placement in TV shows and soaps is a more gentle, and yet at the same time more invasive form of brand promotions. It's gentle because it doesn't interrupt anything -- you can go on watching your soap. And yet, it's more invasive because it's much more difficult for a viewer to change channels simply because someone is flashing a can of Coke on the screen. So, you just go on watching, and getting your brain stuffed with program content, along with brand names that go along with it.  In the UK, for example, TV channels have had to make a big effort to avoid featuring branded goods up till now.

"In dramas a canned drink is always held in such a way that the logo is obscured by the actor's hand; products appearing in shot during "reality" shows often have their labels obscured in post-production by patches of blur, " says Tim Hayward on Guardian's Word of Mouth blog.

At the end of February this year, Hayward writes, it will be possible  to place branded goods on UK's TV and radio channels. Will this help TV to generate enough cash to improve the quality of programs? And if yes, will it be done in a way that will not annoy TV consumers too much?

Brands in songs

I've written about product placement in movies and novels, and today I am going to touch upon another interesting medium -- songs. Two marketing professors from US universities, Federico de Gregorio and Yongjun Sung, analyzed almost 4 000 songs that appeared in top 10 music charts from 1955 to 2002. (( Giving a shout out to Seagram's Gin: extent of and attitudes towards brands in popular songs. F. de Gregorio and Y. Sung, Journal of Brand Management (2009) 17, 218–235 ))

Photo by Cameron Cassan on Flickr

Their empirical study has concluded the following:

  • there has been a significant growth in brand mentions in songs over decades
  • a particularly big spike in brand mentions began around 1995
  • alcohol, automotive and fashion brands are most common in songs
  • consumers perceive brand mentions in songs less favorably than in movies, yet they are not overall very negative
  • the most appropriate genres of music for brand placement are hip-hop and rap.

Brand mentions are not a totally  new phenomenon. Listen to this song, Budweiser's a friend of mine, that came out back in 1905:

Most of brand mentions in songs happen organically, with nobody paying for their appearance. However, there are some agencies that specialize in brand placement in songs, targeting almost exclusively hip hop and rap artists.

It's clear that brands are becoming part of popular culture, and their increasing appearance in songs is a good proof of this interesting phenomenon.

What songs with brand mentions do you know?

A short video about brands and branding

Today I want to share with you a video in which I talk about brands, and give a short and (hopefully) simple definition of what brands are. The video has been filmed in co-operation with FreshUp.TV. This video is meant for entrepreneurs and all those who want to learn about branding basics. We plan to shoot more videos about brand strategy in the future.

Best of SCHMOOZY FOX 2010

With this post, I want to bring to your attention the best posts that were published on this blog in 2010. They 've attracted most of the traffic because I think they give some of the most useful tips to anyone who wants to build a Funky Brand™. If you want to brush up on your knowledge of branding, here's your chance! BRAND STRATEGY

Image by Levy Fulop on Flickr

ONLINE BRAND STRATEGY

FUNKY BRAND INTERVIEWS

Photo collage

  • Theo loves you: an interview with Wim Somers, founder of a very stylish brand from Antwerp.
  • Interview with Anders Wall, CEO of a Danish upscale brand of bicycles, Biomega.
  • From Mallorca with love: interview with Camper shoes.
  • Interview with Jean-Pierre Lutgen, CEO of Ice Watch.
  • Interview with Isabelle Cheron, Creative Director of Kipling bags.
  • Interview with Nathalie Colin, Creative Director of Swarovski.

PERSONAL BRANDING

RE-BRANDING AND BRAND REPOSITIONING

BRAND NAMING

CREATIVITY AND BRANDING

taarten van abel

Brand names for innovative products

pampersIf you are about to launch an innovative product, the kind that has never existed before, you'd better give it a great name -- memorable, snappy and easy to pronounce. But what if your product becomes so popular, that it gives rise to a whole new product category? So popular, that people begin referring to this new category by your product name.

"I am going to get more pampers for my baby."

"Give me a kleenex, I have a cold."

"Let's take a thermos on our trip."

"Let's make some jell-o for dessert."

Pampers, Kleenex, Thermos and Jello-O all used to be innovative products that essentially established totally new product categories. Nowadays, people go shopping for "pampers" even if they will end up buying a box of Huggies.

This phenomenon is called genericide, or a "threat of the brand name being used as a generic term." (( Taylor ,  C .  and  Walsh ,  M . G .  ( 2002 )  Legal strategies for protecting brands from genericide: Recent trends in evidence weighted in court cases .  Journal of Public Policy and Marketing  21 (1) :  160 – 167 .))

Is genericide good or bad for your brand?

On the one hand, one could argue that it is good.  After all, it demonstrates very high awareness about your brand. However, this brand awareness may not necessarily lead to purchases of your brand, since its popularity will prompt other copycat brands to appear. And it may lead to customers buying them, whilst referring to them by the name of your brand.

Whereas there's probably little you can do to prevent competitors from launching similar products, you might want to make sure that genericide does not have negative consequences on the brand of  your innovative product.

Professor Judith Lynne   Zaichkowsky from Copenhagen Business School suggests the following methods that brand managers can use to protect their brands from genericide: (( J.L. Zaichkowsky, Strategies for distinctive brands, Journal of Brand Management (2010)  17, 548 – 560))

  • use the trademark as a descriptive adjective, such as Rollerblade ® in-line skates or I-POD ® MP3 player.
  • use the trademark notice in advertising and labelling, for example, BLACKBERRY ®
  • display the brand name with special typographical treatment -- font matters!
  • extend the brand name to other related product categories
the threat of the brand name being used as
a generic term

In other words, successful protection of a brand name involves much more than attention to the name itself -- it a brand strategy that affects a whole company.

Branding affects all company functions

In my post Need rebranding? Don't just change your logo, think brand strategy, I gave a definition of brand strategy. And indeed, what's important about branding is exactly the word "strategy". Today, I want to share with you an article published by B2CMarketingInsider: Branding, It's a Company Wide effort. I completely agree with the author that "Branding is the overall experience from top to bottom within a company". This is contrary to a seemingly widely accepted opinion that brand strategy should lie within the scope of marketing departments.

It is partially true, especially when it comes to communicating the external image of your company, and knowing your consumers, at which many marketing departments excel.

However, branding goes much deeper than that and affects all company functions. Paraphrasing the article, branding is all about:

  • how your clients or prospects are treated
  • how problems are solved, and whether the internal company culture facilitates problem solving or not
  • how your product or service quality correspond to your company's promises.

This is why wherever possible I like to make contact early on in any project with a company's founder, CEO or Managing Director — the person who has an overall view at all company’s functions. Or the strategic brand manager for the product in question.

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.