marketing strategy

How "Made In" labels influence purchasing decisions

Have you ever thought what kind of associations come to mind when you discover that a bottle of wine you are considering buying comes from France? Or a pair of very pricey, but very fancy and good quality shoes was made in Italy? How does this information influence your decision to buy, especially if there are other bottles of wine on the shelf, from Spain and Chile? And other pairs of shoes in the shop, made in China. Would you ever base your purchasing decision on the information you read on the made in label?  

Even in the age when the majority of European and North American companies outsource manufacturing to Asia, the Country of origin (COO) remains a very important concept in international business. It plays a significant role in shaping a brand image, and influencing purchasing decisions. As authors of a study on country of origin’s influence on customer perception ((Perceptions of country of origin: an approach to identifying expectations of foreign products, by P.A.P. Samantha Kumara and Kang Canhua, Journal of Brand Management 2010, 17, pp 343-353 )) write, “By understanding the dynamics of how different consumers respond to country-related information, managers can make more informed choices about the risks and benefits of locating various stages of the value chain in different parts of the world.”

 

The COO is closely related to the notion of country brand. When you read a made in label, what pops into your mind is the “picture, the presentation, the stereotype that businesspeople and consumers attach to products of a specific country.” (( ibid. )) In other words, that country’s brand.

 

The study by Kumara and Canhua reveals a wide spectrum of associations which go through our minds when we discover the COO of a product. As you can see in the image below, their scope is very wide. (( ibid. ))

 

But the main four categories into which our mind starts to put information related to the COO are:  Economic, Information, Conviviality and Personality.

 

“This finding reveals that when a consumer buys a foreign-made product, he considers the economic value of the product, wants more information about the product, and considers to what extent the product has an impact on social status and how the product enhances consumer personality," say the authors of the study. (( ibid. ))

 

The concept of country of origin should feature in your marketing mix along with the famous four P’s (price, product, place and promotions), as it can greatly help you differentiate your product. But how can companies differentiate their products, made in China, if pretty much every company in Europe and North America outsources manufacturing to Asian countries as well?

 

I’ve seen some creative examples which illustrate this point. Most of them use designed in rather than made in, in order to stand out of the crowd. Here's an example of a made in tag which I found on the reverse side of my Mais il est ou le soleil dress:

 

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?

Why venture capitalists should ask web startups about brand strategy

Photo by Jus' fi on Flickr

Should startups worry about brands?

This is the question that a venture capitalist from Silicon Valley, Larry Kubal, asks in his thought-provoking article. ((The article was published by The Venture Capital Journal in November 2005. You can download the full text from this page , scroll down to “November 2005”, it’s there!))

Kubal’s short answer is YES. According to him, venture capitalists should make sure that brand is taken care of by web startups before any investments are made, “For VCs currently paying far more attention to consumer facing Internet businesses than they have in quite some time, ‘word of mouth’ has taken on a whole new meaning.”

ELEMENTS OF BRANDING

The elements of branding that Kubal gives as important to consider by startups (and venture capitalists who assess them) boil down to:

  • viral marketing
  • intuitive messaging
  • word of mouth branding

But are these the only elements of brand that startups should worry about? In my experience of working with companies seeking market entry, the notion of brand goes much deeper than this.

DIG DEEPER!

Venture capitalists should dig much deeper into brand strategy when they do their due diligence on startups.

Especially when it comes to web startups, my experience is that techies may well think about going "viral", but what they are often not well equipped to think about is the consumer, as well as product design suited for the consumer! They often assume that consumers are as "geeky" as they are themselves!

So, it is not only a detailed plan of how a startup plans to be viral that venture capitalists should look for when they do their due diligence about brand.

They should dig much deeper than that. Good branding is not only about promotions and word of mouth. The key is to assess whether a startup thinks in terms of brand strategy or not.

WHAT IS BRAND STRATEGY?

A brand strategy begins with product design and consumer intelligence, and continues through the design and delivery of promotional materials, promotional strategy, customer dialogue, distribution…. All of which is important if you want to build a funky brand.

Importantly, a good brand strategy should be embedded within the company’s DNA. If you don’t get the DNA right from the start, it will be very hard to fix later - you simply can’t afford your company DNA, and with this, your brand strategy to be an afterthought!

WHY STARTUPS RARELY THINK ABOUT BRAND STRATEGY

Unfortunately, thinking in terms of brand strategy is very rare among web startups, for various reasons. I’ve touched upon some of them on several occasions. For instance, see SCHMOOZY FOX’s thoughts about web and mobile startups here or check our tips on how to craft a smart marketing strategy if you are a web startup.

Of course, VCs might themselves be more attentive to these aspects than the average techie. One would certainly hope so. Nonetheless, the fact remains that huge amounts of time and money – including VC money – are poured into web enterprises that have no chance of taking off because they have not thought through consumer needs, product design and communication.

SCHMOOZY FOX works with web startups to help them incorporate brand strategy early on into their recipe for future success.

From Mallorca with love: interview with Camper shoes

Miquel Fluxa from Camper Camper shoes was one of the first funky brands featured on this blog back in 2008.  When Camper opened its shop in Brussels, I thought that a Funky Brand Interview would be spot on for SCHMOOZY FOX’s blog.

And here it is! I had a chance to talk to Miquel Fluxà from Camper.  A son of Lorenzo Fluxà who founded Camper in 1975, he is responsible for business development and brand extensions at Camper. Educated at ESADE and Stern Business School in New York, where he studied business administration, Miquel thinks that one of his professional strengths is the ability to understand and work with creative people such as designers.

The Mamba shoe

“I am not sure if I can call myself creative, at least in the sense of expressing myself through visual arts. But creativity is a very important element at Camper, and I very much enjoy working with highly creative designers who develop shoe designs, as well as those who have collaborated with us on our Casa Camper hotel chain project.

Casa Camper Berlin

SCHMOOZY FOX welcomes Miquel Fluxà to the blog about funky brands! All images in this interview were provided to SCHMOOZY FOX courtesy of Camper.

SCHMOOZY FOX: Miquel, first of all, what makes Camper shoes a funky brand?

Miquel Fluxà: Camper is without any doubt a FUNKY BRAND according to SCHMOOZY FOX’s definition!

Camper together with Bernhard Willhelm AW2010s

We are constantly working on delivering new ideas to the market and we do it with passion and creativity. We think differently and we want to be seen different, although not in a loud, showy way, but with austerity and discretion.

We are serious about what we do, but do not take ourselves too seriously, so we like to add a twist of understated imagination and irony to everything we do. We have a strong core belief that we try to transmit to consumers through product, retail and communication so that they can feel the Camper experience.

Camper together with Romain Kremer AW2010s

SCHMOOZY FOX: And now, could you characterize the Camper brand by only 3 words? What would they be?

Miquel Fluxà: Authentic, thoughtful and imaginative. We are authentic because we have been shoe-makers for over 130 years and we are committed to the long term.

Camper on Madison Avenue in NYC

Quality and craftsmanship remain at the heart of what we do and what we are. We are thoughtful and caring with the people, culture and environment where we work. Camper means “peasant” in Catalan and we have always been connected to the Mediterranean rural world.

And imagination and creativity have always been in the core of the company, applied into every process from the pre-production phase until the recycling, always trying to do things in a different way.

SCHMOOZY FOX: Could one say that these are also the reasons why customers like Camper?

Camper store in London

Miquel Fluxà: Yes, we think so!

We believe that our consumers know Camper values and share them. Our products reflect what we are: our know-how and creativity have always been the common thread of our collections, and we have now taken this to an upper level: Extraordinary Crafts, Creative Quality and Quality Execution, under which we combine our passion and experience with new ideas to create shoes that are useful, innovative and full of personality.

We think that this is something that our consumers take deeply into consideration when they decide to purchase a pair of Camper shoes.

SCHMOOZY FOX: Camper was founded by your father. What made you decide to join forces with your father and continue building Camper as a family business?

Miquel Fluxà: Although Camper as a brand was founded by my father in 1975, the origins of the company go back to 1877, when my great-grandfather founded the first shoe factory in Spain and later  my grandfather continued with the factory. That makes us the fourth generation.

Although there was nothing planned and we had no obligation to continue building Camper, there is an important sentiment of responsibility of continuing the family business.

It also a great luck to work in company like Camper, which is an international company with fantastic people working all over the world, an interesting company with great projects, and based in a fantastic place like Mallorca!

SCHMOOZY FOX: Camper has a worldwide presence. What do you think are the countries where Camper is loved most?

Miquel Fluxà: Considering that the Spanish and European and some Asian countries like Japan and Taiwan consolidations took place in the 80s and 90s respectively, the presence of Camper in these mature markets is broader than in the new ones. However, the last decade has represented the introduction and development of the brand in the United States, Asia, Australia and more recently Russia.

We are confident that Camper lovers can be everywhere in the world. New technologies such as the social media have allowed us to collect information about unexplored markets and we are surprised of the quantity of fans that Camper has in countries where we do not even have a selling structure.

SCHMOOZY FOX: What are the main distribution channels Camper uses?

Miquel Fluxà: Camper is distributed through its own stores that we operate directly, and through multi-brand stores and department stores. The wholesale activity is currently the most important one.

The company was born in 1975 and during the first years the products were marketed only through multi-brand stores. However, we realized that the best way to create a whole Camper experience for our customers was by setting spaces that would allow them to interact with the shoes and the brand.

As a consequence of this reflection, in 1981 we opened our first store in Barcelona, and in 1992 we opened our first store outside Spain in Saint Germain in Paris.

SCHMOOZY FOX: As regards your online shop, what are the challenges and advantages for the consumer to buy a pair of shoes online ? What do you do in order to bring the in-store buying experience to the online world?

Miquel Fluxà: Probably the biggest challenge for us is to enhance consumers’ online purchase experience when they decide to buy shoes through our online shop and, therefore, we focus on three different factors.

First, we provide customers with as much information as possible about the shoes: detailed description, high quality pictures from different angles, quick search menu. Then, we seek excellence in our pre-sale and after sale customer service. Finally, we want the online purchase to be a total Camper experience as it would be to buy in a physical store.

Madrid Fuencarral Storesmall

For us the online store is another Camper store, only with a different format and approach to the customer, and we consecrate our efforts to ensure that the customers feel that they are at a Camper store, providing them with the same quality, service and warranties.

SCHMOOZY FOX: Finally, how does Camper plan to continue being a funky brand in the future?

Miquel Fluxà: We will keep on trying to make creative shoes, executed with quality and comfort and maintaining our commitment to sustainability. We will continue increasing our creative network with consolidated and future talents. But above all, we will remain faithful to our origins and values!

SCHMOOZY FOX: Thanks for this interview, and I wish you a lot of success with Camper!

Plugg 2010 conference in Brussels: March 11, 2010

Plugg2010

Last year, I attended the Plugg conference in Brussels for the first time, and I am happy I'll be going again this year. I found Plugg to be a great way to discover some promising web start-ups from around the world, and listen to venture capitalists and technology gurus talk about business opportunities on the web.

Given SCHMOOZY FOX'S brand and marketing strategy work for web start-ups, an event like Plugg is great chance to check out the fresh web talent out there. I guess this time around, Plugg will be a showcase of advanced technology and web apps. Will the participating start-ups be able to convince us of their commercial and marketing know-how as well? We'll find that out next week.

For those who are not familiar with this annual event, Plugg is a conference that brings together European web and technology start-ups and gives them a chance to pitch their business ideas to a panel of venture capitalists. It’s also an annual celebration of web entrepreneurship in Europe.

Check out the list of all the participating start-ups by visiting the Plugg site.

In order to get a sneak peak at this year's Plugg, I asked Robin Wauters (Plugg organizer, TechCrunch editor, serial

Robin Wauters, organizer of Plugg 2010

entrepreneur and simply an avid user of the web), to talk about the event.

SCHMOOZY FOX: Robin, is it still possible to register for Plugg 2010?

Robin Wauters: Yes, you can register until the day before the event, even. Readers of your blog can register with a 25% discount using the code plugg-25percent here: http://mijnevent.be/en/event/101/plugg-2010.

SCHMOOZY FOX:  How will Plugg 2010 differ from Plugg 2009? Obviously, there will be new start-ups and new speakers, but how else are you going to surprise us this year?

Robin Wauters: To be honest, it will be much of the same as last year. We think the formula works well, and we're really excited about the line-up of speakers and startups for this year. But always happy to receive suggestions from anyone who attends to see how we can improve the conference for next years.

SCHMOOZY FOX: Thanks for organizing this high-level event again this year, and I am looking forward to some schmoozing!

Robin Wauters: Likewise ;)

Funky benefits of Benefit Cosmetics

LaughterLately, I've been busy interviewing founders of funky brands, sharing tips with you on various subjects of brand and marketing strategy, and hey, doing work for my clients. So,  I haven't as a result written a plain vanilla funky brand review in a while. Time to correct this bad gal's behavior!

Although, wait a minute, the brand in question is actually a perfect fit for any bad gal'. They even have a product called Bad Gal Mascara.

The brand in question is called Benefit Cosmetics, and its place of birth is San Francisco, which happens to be one of my favorite cities.

I guess it was the mention of San Francisco (written somewhere on the product display in a shopping mall) that caught my attention right from the start. To give this phenomenon a proper name, let's say that San Francisco was my first brand entry point for the Benefit brand.

In other words, it generated enough curiosity in order for me to continue exploring Benefit products.

And what did I find out?

Well, first of all, very funky product design. It was a true eye-catcher. A bit of a retro look combined with vibrant colors looked candy-like.  The shape of packaging also somehow felt right. I picked up a small bottle of perfume and just enjoyed holding it in my hands.

Second of all, there're funky product names. Check it out: "smokin' eyes", "some kind-a gorgeous", "my place or yours".

BadGalBenefitMascaraProduct quality? It seemed fine, although I can't be an authority on this subject -- I was in a hurry and thought I'd experience first instead of buying right away. So, I simply don't have an opinion on how long-lasting these products are, if their texture and scent are pleasant, etc. But I have a feeling that this stuff is nice.

Benefit Cosmetics was founded by twin sisters, Jean and Jane Ford, formerly models in NYC. After earning enough cash during their modeling career, Jean and Jane decided to invest it into something they knew very well -- make-up. And so Benefit was born.

Right now both sisters own a minority stake in Benefit, having sold the controlling stake to LVMH back in 1999.

As you can imagine, the business of cosmetics and make-up is extremely competitive. Dominated by huge powerhouses such as L'Oréal and the like (and this is just one market segment!), cosmetics brands have to struggle very hard in order to break through a huge level of competition. Therefore, it's important to stand out from the crowd.

Benefit for sure did it quite well through its packaging, product names (and the brand name itself which is pretty successful!) and its ability to tap into the city brand of San Francisco.

And, importantly, it is highly profitable, one of the important characteristics of all funky brands.

Does this mean that there's no need for any brand strategy and positioning work any more for Benefit to do?

Not at all. Benefit's consumers and their interests are evolving. New creative and funky-to-be competitors are coming to the market. There are indeed a lot of things to take care of if one's funky brand is to stay funky!

SCHMOOZY FOX changes its look

schmoozyfoxsitesnapshotSome of you have already noticed that www.schmoozyfox.com has changed its look! I am happy to be running the site of SCHMOOZY FOX brand and marketing strategy consulting, www.schmoozyfox.com as well as the blog about funky brands, on this new WP theme! Many thanks to  Cristian Eslava, a WordPress wizard from Seville, for helping me to set up this theme and make sure that everything is up and running correctly! Also thanks to my friend Ellie Zachariadou (who's by the way the author of the cool fox logo) for her tweaks and advice about graphic layout.

Working with Cristian motivated me to re-activate my  Spanish: it was a lot of fun exchanging emails about widgets, plug-ins and cascading style sheets en español! It's been also coincidentally fun to realize that Cristian's last name, Eslava, which means "Slavic" in Spanish, somehow resembles my own last name, Slavkina.

For his great help, I want to give my link love to Cristian!

Cristian's site, http://justtellmewhy.com (the Spanish version is available on http://pqpq.es/) is a mix between a blog and a discussion forum. One could call it a Web 2.0 platform for debates.

One of its interesting features is that visitors of the site can post questions to which they cannot find answers in “real life”, and wait for crowdsourced solutions. The good news is that one does not need to register in order to ask an answer or leave a comment. The anonymous character of debates can encourage wider participation.

To show you how the site works, here is an example of what I posted on justtellmewhy. Check it out and submit your opinions. Let's get the debate going! You can also use it for starting opinion polls and sharing them with your friends through various online channels.

Another important feature of the new look is a photo of truly yours on the page About Olga. This is just one image from a whole range of absolutely beautiful images that were taken by a talented Brussels-based photographer Michael Chia. Michael's main talent is that he is able to reveal his clients' personal brands through photography.

My photo session was a mix of cool music and Michael climbing the ladder with his camera, meanwhile "chatting me up" to make me feel comfortable.  I am very happy about the result, and you will soon be able to read an interview with Michael to learn how he helps build personal brands through photography.

And meanwhile, enjoy the new look of SCHMOOZY FOX.

Right moment, right message, right place: how to build luxury brands using social media

Is it time for luxury brands to get engaged in more pro-active marketing in social media, or does the concept go against their brand values? This blog posts addresses these issues and gives a couple of examples to illustrate them.