co-branding

The power of brand endorsements

Trust builds brands If some of my readers are into consulting, or any other type of services business, no doubt they are very well aware of the power of recommendations. A former client making a referral about you to a prospect, a powerful recommendation of your skills and achievements on LinkedIn, Klout +K’s that you collect -- any of these can signal trust, an essential element for building good brands. Likewise, if you are an author, the praise given to your new book by other authors or famous people is crucial, and can boost the sales of your book.

The Thank You Economy
The Thank You Economy

Our brain seems to be wired to perceive endorsements, recommendations and word-of-mouth in a very special way.

In particular, before we make a decision to proceed with a high-value project, we seem to give a lot of weight to the recommendations of our trusted friends and partners.

Whether it’s a need for a strategy for your business for the next 3 years, or a new house for your family, you need to be able to trust the people who will be delivering this high-involvement, high-value service.

Celebrity endorsements - the glitz and glamor of branding

The dynamics of building trust have been studied in various fields -- psychology, marketing, and diplomacy, to name a few. In relation to brand strategy, a subject that has been studied particularly well is celebrity endorsements that are used to support launches of new products, or infuse a new life into existing ones. This technique can infuse your product with an instant dose of glamor and glitz, which, in  its turn, leads to higher sales of the product being endorsed.

Face value

Jimmy Wales Wikipedia
Jimmy Wales Wikipedia

These days, celebrity endorsements are omnipresent. Lana del Rey for H&M, George Clooney for Nespresso, or Jimmy Wales for Maurice Lacroix -- it seems that all it takes is to pair up a handsome famous face next to a product in order to make it a market success.

Many companies have used the strategy of celebrity endorsements to build their brands. And I am not only talking about big brands that have enough cash to pay celebrities -- even some startups have chosen celebrity endorsements as a sure way to become known and reach for the stars.

But wait a minute. Why would a person whom we don’t actually know, just because of her celebrity status, be able to grow your product sales only by saying that she uses a certain brand of smart phone, car or lipstick? Do customers really experience immediate trust towards a product, supported by a famous person -- even if they don’t rationally know that much about the celebrity in question?

Forget the rational

And here’s my advice -- when it comes to celebrity endorsements, forget the rational aspects of consumer behavior. Before we continue looking at the dynamics of celebrity endorsements, let’s keep this in mind: ninety-five per cent of our thoughts, emotions, and decisions, including decisions to buy a product endorsed by a celebrity, cannot be referred to as ‘rational’. According to Gerald Zaltman, a marketing professor at Harvard, and author of How Customers Think (( Boston, Harvard Business School Press, 2003 )), most of our decisions take place without our conscious awareness. So, when your customers are looking at your new ad featuring a famous model or Hollywood superstar carrying the bag that you produce, they don’t start analyzing why they find your ad appealing. Something much more powerful takes place in their subconscious minds, so let’s take a look at how this works, from the point of view of neuroscience.

KimCattrall
KimCattrall

Famous faces help sell shoes

In a recent study published by Journal of Economic Psychology, Dutch researcher Mirre Stallen (( Mirre Stallen et al., Celebrities and shoes on the female brain: The neural correlates of product evaluation in the context of fame, Journal of Economic Psychology 31, 2010, 802-811 )) looked into how products appearing next to faces of famous, vs non-famous, women, activated the brains of respondents. During the experiment, twenty-three young Dutch women were exposed to images of shoes accompanied by faces of celebrities, as well as faces of non-famous women. When the images of shoes were paired with famous faces, the areas of the brain responsible for processing emotional stimuli, were more likely to get activated than in cases when shoes were paired with faces of non-celebrities. Also, the brain activity showed that positive feelings about celebrities were easily transferred onto positive feelings towards the shoes shown to respondents.  The young women who participated in the study said that “they'd be more likely to buy the shoes associated with a celebrity's face, as long as the shoes were ones they believed the celebrities didn't already own.” (( Source: Psychology Today ))

Persuasiveness of fame

If celebrity endorsements are not a technique that is relevant to your product, get inspired by the dynamics of this branding strategy anyway. The important point to keep in mind here is that building trust is essential to building strong brands. Find your brand ambassadors, online influencers and trusted business partners, and if you manage to get their appreciation of your work expressed in the public domain -- be it your LinkedIn profile, the cover of your upcoming book, or a referral during a networking event -- their ‘fame’ and status will propel your brand to success.

Reaching_for_the_stars_schmoozy_fox
Reaching_for_the_stars_schmoozy_fox

Gaga boosts Google's brand

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

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

 

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

 

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

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

 

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

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

 

My favorite quotes by Gaga in this video are:

 

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

 

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

 

The word "schmoozing" spotted in French

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

Schmoozing: mode d'emploi(s)

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

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

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

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

So, from now on, vive le schmoozing!

schmoozing definition

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

Philippe Starck gives a boost to photo booths

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

All of this in a rather dull environment.

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

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

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

A snapshot of Starck from an article in Management

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

A new kind of brand ambassadors: famous bloggers

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

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

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

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

Another example of co-branding: Veuve Clicquot and DKNY

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

dkny-veuve-clicquot-rubber-boots

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

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

Co-branding: Martini and D&G

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

Brand partnership

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

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

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

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

Celebrity endorsement

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

Country branding

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

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

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

The MN bike by Biomega

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

Anders Wall

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

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

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

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

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

The Boston bike

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

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

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

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

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

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

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

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

Anders Wall, CEO of Biomega

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

SCHMOOZY FOX: Do you bike to the office?

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

SCHMOOZY FOX: Thank you, Anders!

Brand partnerships

Photo by Nelson Cheen on Flickr

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

BRAND RE-VITALISATION TECHNIQUES

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

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

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

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

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

BRAND PARTNERSHIPS, OR CO-BRANDING

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

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

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

FASHION AND HOME ACCESSORIES

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

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

Diesel lamp

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

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

levis_ambiance_1

Watch this space for more examples of brand partnerships.

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

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

An example of co-branding: Naked Wines and Naked Chef

jamie_oliver_naked_wines In June I featured an interview with Rowan Gormley, founder of Naked Wines, a funky online wine retailer from the UK. And here is some awesome news about Naked Wines: just recently, the company has entered into a partnership with Jamie Oliver, a popular chef.

This is a great example of co-branding, an alliance between two companies whose co-operation can enhance reputation of each brand. The partnership is very logical, not only because food and wine go hand in hand. In fact, both brands are "naked" -- Naked Wines, and Jamie, who's also referred to as Naked Chef.

So, it´s just natural for two ¨naked¨ funky brands to team up. Let´s keep an eye on their great project. And now, watch a video about it.