Every impression counts when promoting and maintaining a successful business, and managing your brand identity is a major factor in that success. Whether it’s your logo, your website or your business cards, your customers build an impression of your company through every interaction they have with it. Each touchpoint adds up to create your brand image. But in today’s dynamic digital market, customers have more ways than ever to engage with brands.
New and evolving technologies demand that businesses account for the myriad of platforms that can promote as well as demote their brand. Brand research across a diverse range of markets has shown that your customers’ opinions, needs and expectations can turn on a dime, particularly in the court of social media. As a result, the challenge for businesses is to navigate these platforms to ensure they don’t get lost in the crowd, or worse, stand out for all of the wrong reasons.
What Is Brand Identity and Brand Image?
Brand identity is the way a business defines itself to their target audience. Every element that helps define your brand, from name and logo to color scheme and even the language you use to communicate with your audience come together to create your overall brand identity.
On the other hand, your brand image is the perception that customers have of your brand. It is the aggregate of every experience, interaction and association that people have with your organization. Continue reading
There’s no doubt that online sales are growing. In fact, at 16%, online retail sales growth is swiftly outpacing in-store sales growth, which stands at 3.4%. But before you close up shop, consider the other side of this story: Most of that growth is attributed to brick-and-mortar retailers adding online sales to their mix. Plus, when it comes to total sales, brick-and-mortar stores lead the way. In 2017, in-store sales increased by $152.7 billion, while ecommerce and online sales increased by only $62.5 billion.
So, while the Amazon effect is very real, it’s not as scary as it seems. But that doesn’t mean you can ignore the fact that digital is woven into the daily lives of your customers, or that many of them enjoy the ease and convenience of shopping for some of their favorite items from the comfort of their own couch.
What it does mean is that if you want your customers to continue visiting your brick-and-mortar store, you’ll need to make a few changes. Continue reading
Lessons from the Consumer Packaged Goods Industry
The telecom industry has always been innovative, but the innovation has been mostly incremental. Over the past century, we had telegraphs, then wired telephones, then wireless phones, then cell phones, and now we have smartphones. Up until the smartphone, the iterations were not fully reimagined products, just significant improvements on the existing products of the era. Today, we have high-speed internet and smartphones that put most of our communication and entertainment literally at our fingertips. Never has the telecom industry had to reinvent itself to the extent that it does today.
Telecom companies are now essentially media companies, not phone and internet companies. To accommodate all of these changes and to rapidly adapt, telecoms are engaging in an unprecedented number of mergers and acquisitions. A combination of these factors means telecoms need to constantly rethink their products and positioning. They also have to build and market new products—and they have to do it quickly. Continue reading
Virtual Reality Is More Than Fun and Games
Over the past four years, a flurry of product introductions has created significant buzz around the area of virtual reality (VR), and much of the hype is well deserved. Users confirm that VR offers an incredibly immersive experience. In practical terms, this means that VR users feel swept away from their actual, physical environment and transported into an entirely separate virtual environment that fully engages their senses of sight and sound. Fighting off robots in the land of Robo Recall when one is actually standing in one’s living room is both thrilling, fun and magical. However, academic research indicates that the benefits of virtual reality go far beyond offering a novel experience for gamers. Continue reading
Editor’s Note: If you’re attending the 2018 Corporate Researchers Conference, please join Gwen Ishmael and Paul Ponsford of Delta Faucet Company for “#TomBradyFail—An Innovation Lesson from the New England Patriots” on Wednesday, October 10. Their talk will dive deep into this blog topic of how different consumer types can support (or inhibit) innovation. Contact us for a registration discount code.
As noted in Forging a Clear PATH to Corporate Innovation, it is critical to involve the right types of consumers at the right points along the Innovation Journey. Instead of simply focusing on your Target Consumer, it is important to recognize how other types of consumers—Lead Users, Creatives, Early Adopters and Brand Advocates—can contribute to and strengthen the innovation process.
These different consumer research groups form naturally around shared traits and preferences, the exact kind of commonalities that can spell gold for marketers—and market researchers. But the keys to tapping into their potential lie in understanding and identifying members of each group and knowing when exactly in the Innovation Journey they can contribute most.
Is Nike’s advertising deal with Colin Kaepernick a genius move or a PR disaster?
Nike recently marked the 30th anniversary of its iconic “Just Do It” campaign by launching new ads featuring NFL player Colin Kaepernick, a move that instantly raised controversy online. Numerous notable sportspeople, such as LeBron James and Serena Williams, joined hundreds of thousands in supporting the advertising and Kaepernick’s broader cause. However, those opposed to Kaepernick and the practice of kneeling during the national anthem at football games reacted strongly as well, with many calling for a boycott of Nike, and some even taking to destroying their Nike gear.
While there is certainly much to debate regarding Kaepernick and his cause, and probably less so regarding the questionable logic of destroying merchandise that Nike has already collected revenue on, this article is not about that. As somebody who oversees millions of dollars of brand market research every year, my curiosity was piqued: Would this prove to be a genius move or PR disaster for the brand strategists at Nike? And so to answer this burning question, the consumer & retail research division of Market Strategies International went into field to survey public opinion.
For many global companies, brand evolution is a natural part of running the business. As consumer attitudes and lifestyles change, so must brands if they want to continue to deliver value to their customers.
But in an effort to remain relevant, companies too often hinge their brand identities on current events and passing trends rather than thoughtfully forging a path forward. In this pursuit, many companies forget to first examine their place in the hearts and minds of customers. That’s a mistake because the stakes are high if you don’t get brand evolution right. This is a lesson Tropicana learned the hard way when, in 2009, it decided to drastically change the design of its packaging—a move that resulted in swift consumer backlash and a 20% sales drop.
Packaging is just one small part of your brand identity, but Tropicana’s misstep is a cautionary tale on the potentially risky consequences of making drastic changes to your brand without engaging with your customers first. In changing markets, it’s important to be nimble, but it’s even more crucial to step lightly and purposefully to maintain a healthy brand and avoid alienating existing customers.
We get it—evolving a well-recognized global brand is hard. Staying true to your brand while keeping up with the evolving habits and preferences of consumers is a tricky balance. But why do some companies pull off this transformation successfully while others confuse their customers and lose sales in the process? Examining three brands that are currently in transition can help answer this question.
Market Strategies releases new data as the battle over meal kits intensifies
Blue Apron (APRN) is having a really tough 2017. Just as the meal-kit delivery company went public at the end of June, Amazon (AMZN) announced its acquisition of Whole Foods, and the immediate threat of a new, much larger competitor to the Blue Apron brand emerged. Blue Apron slashed its planned issue price from $15 to $10, and as the drip-drip of Amazon/Whole Foods news continued into the fall, investors have fled and the company current trades at barely 50% of its issue price. Not surprisingly, experts are already proclaiming Blue Apron’s IPO as the worst of 2017.
It’s been downhill from there. In August, the company announced that it was cutting over 1,270 jobs at its New Jersey facility, representing nearly a quarter of total staff. And the latest chapter in the Blue Apron saga was a dismal earnings report for the second quarter of 2017, which showed that the company lost $31.6 million and 9% of its customer base. Blue Apron had to adjust its forecasts for the rest of the year, and announced that it would be significantly reducing its marketing spend in the back half of the year, which will have additional impact to the company’s top line growth and put further pressure on its stock price.
Retailers that can’t deliver a personalized experience are at serious risk of becoming irrelevant soon. According to a study from Accenture, 75% of shoppers are more likely to do business with companies that recognize them by name, offer relevant recommendations and remember their purchase history.
This study highlights that we’re in the midst of a paradigm shift in the shopper-retailer relationship. With mobile technology and a wealth of information at their fingertips, shoppers want an experience that’s tailored to their individual needs and desires. They crave a one-to-one relationship with the retailers they do business with—and they’ll happily switch brands if that expectation isn’t met.
In the race for personalization, digital natives have an early lead. That’s because they’ve built infrastructure and business models that enable the real-time collection of data and the delivery of customer needs. But both incumbents and newcomers in retail need to realize that personalization isn’t simply a technology problem—it’s an insight problem that revolves around the customer journey.
To get personalization right, retailers need to take a step back, start from the beginning and look at the big picture. It requires understanding not just the logical aspect of purchases, but also the emotional triggers that convince shoppers to buy.
A few days ago, I was in a meeting where someone defended a decision to cut Voice of the Consumer research before new product ideation sessions, citing a 1985 Playboy interview with Steve Jobs. To paraphrase, Apple wasn’t going to do market research on the Mac because they were the best judges of what’s great and what’s not. Jobs later added, “People don’t know what they want until you show it to them.”
For many marketers, the failure rate for new product introductions hovers around two-thirds. The inclination to drop research because discovery is not yielding new information is understandable, but killing consumer research because it’s somewhat costly and time consuming, or worse because the team thinks it knows better than its customers, is a perilous strategy.