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January	  2011	  	  	  	  	  	  	  	  	  Brand	  Design	  and	  its	  Effects	  on	  	  Consumer	  Purchasing:	  	  	  An	...
January	  2011	  	  	  	  	  	  	  	  	  Brand	  Design	  and	  its	  Effects	  on	  	  Consumer	  Purchasing:	  	  	  An	...
Acknowledgements	  	  There	  are	  a	  few	  people	  I	  would	  like	  to	  personally	  thank	  for	  their	  assistan...
Table	  of	  Contents	                  	  Abstract	                                                                      ...
Conclusions	  /	  Recommendations	  	                                                                                     ...
q.    Chart	  17:	     Which	  brand	  am	  I?	  –	  Hummer	                                     148	                r.   ...
Table	  of	  Figures	                         	  Figure	  1:	  	            Customer-­‐Based	  Brand	  Equity	  Model	    ...
Abstract	  	  Brand	   design	   is	   important	   when	   trying	   to	   market	   a	   product	   or	   service	   int...
Introduction	  	         I.   Background	  Summary	  and	  Rationale	              With	  the	  variety	  of	  available	 ...
        II.   Purpose,	  Aim,	  and	  Objectives	               Through	  researching	  the	  branding	  stories	  of	  Ap...
Literature	  Review	  I:	  Sector	  Overview	  	         I.   Branding	  as	  an	  Industry	              Whether	  trying...
•    Technical	   development	   –	   “design	   the	   product	   and	   the	   manufacturing-­‐                   and-­‐...
               Figure	  1:	  	  Customer-­‐Based	  Brand	  Equity	  Model	                	                	              ...
process—from	   conception	   to	   implementation—as	   there	   are	   many	   benefits	         presented	   from	   ha...
Strong	   brand	   association	   gives	   leeway	   for	   a	   brand	   to	   potentially	   delve	   into	   other	    ...
Table	  1:	  	  Brand	  Equity	  Components	  and	  Branding	  Benefits	                      Brand	  Equity	  Components	...
reinvent	   itself	   to	   stay	   competitive	   within	   their	   industry	   or	   market.	   These	              par...
The	   campaign	   “featured	   black	   and	   white	   portraits	   of	   famous	   people	   …	   [and]	             in...
The	  Coca-­‐Cola	  Company	  was	  founded	  in	  1886	  in	  Atlanta,	  Georgia,	  USA,	  where	  it	         is	  still...
•    Employing	   a	   well	   known	   and	   recognisable	   tagline	   (slogan),	   such	   as	   “Drink	              ...
advertisements	  were	  much	  more	  effective	  and	  were	  more	  familiar.	  (Hollis,	  2009)	         	         To	 ...
iv. Comparisons	  of	  Cases	  	              It	  has	  been	  noted	  in	  each	  case	  that	  the	  major	  themes	  o...
Literature	  Review	  II	  –	  Marketing	  Theory	  	         I.   Purchasing	  Habits	  in	  the	  UK	  and	  US	        ...
As	  Hofheimer	  states,	  the	  “greening	  trend	  is	  large,	  important,	  and	  emerging	  as	  a	         significa...
One	   ever-­‐present	   theme	   running	   between	   the	   two	   subjects	   (United	   Kingdom	               and	  ...
needs	   to	   choose	   between	   products,	   and	   they	   are	   not	   loyal	   to	   a	   specific	   brand,	     ...
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
Brand Design and its Effects on Consumer Purchasing
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Brand Design and its Effects on Consumer Purchasing

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This is my MA International Marketing Communications masters dissertation on brand design and how it affects consumer purchasing on an international perspective.

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Transcript of "Brand Design and its Effects on Consumer Purchasing"

  1. 1. January  2011                  Brand  Design  and  its  Effects  on    Consumer  Purchasing:      An  International  Study  of  Brands  in  the  UK  and  US  Markets                                Stephanie  Lynn  Webb    |    09022561  MA:    International  Marketing  Communications          
  2. 2. January  2011                  Brand  Design  and  its  Effects  on    Consumer  Purchasing:      An  International  Study  of  Brands  in  the  UK  and  US  Markets                            Stephanie  Lynn  Webb    MA:    International  Marketing  Communications  London  Metropolitan  University          
  3. 3. Acknowledgements    There  are  a  few  people  I  would  like  to  personally  thank  for  their  assistance  in  helping  to  compile  and  complete  the  dissertation  and  research  study.  Thank  you  …   • Sharmila  Brown  –  for  your  words  of  wisdom  and  guidance  during  our  meetings.   • Marwa  Gad  Mohsen  –  for  your  communication  assistance  during  the  dissertation   process.   • Riccardo   Benzo   –   for   your   careful   review   of   my   dissertation   proposal   and   guidance  throughout  the  initial  stages.   • Diana  Luck  –  for  help  in  understanding  the  marketing  research  process.   • Rachel   Fairgrieve   –   for   all   your   moral   support,   motivation,   and   putting   up   with   my  endless  ramblings  and  ideas  on  brand  design.   • Vanessa  Levrat  –  for  all  of  your  help  and  initiatives  for  motivation  on  using  new   technologies  and  approaches.   • Claire   English   –   for   your   guidance,   contribution,   and   motivation   for   the   completion  of  this  report.   • Laura  Perenz  –  for  proof  reading  and  editing  my  original  proposal.   • Gisele  Guarisco  &  Peter  Forte  –  for  spearheading  this  course  and  providing  the   entire   IMCo   2009/2010   cohort   with   motivation   and   assistance   whenever   needed.   • Facebook   Friends   &   Twitter   Followers   –   to   those   who   completed   and   actively   promoted  my  online  survey  through  social  media  tools  and  email.                     Page  i  
  4. 4. Table  of  Contents    Abstract   1    Introduction   2   I. Background  Summary  and  Rationale   2   II. Purpose,  Aim,  and  Objectives   3    Literature  Review  I:  Sector  Overview     4   I. Branding  as  an  Industry    4   II. Revitalisation  of  Brands   9   i. Apple,  Inc.   10   ii. The  Coca-­‐Cola  Company   12   iii. Unilever,  Dove  Brand     13   iv. Comparisons  of  Cases     15    Literature  Review  II:  Marketing  Theory     16   I. Purchasing  Habits  in  the  UK  and  US     16   II. Consumer  Behaviour,  Patterns,  and  Trends     18   III. Design  Elements     24   i. Colour  Theory     26   ii. Logo  Development     30   iii. Packaging  and  Products     36    Research  Methodology   39   I. Rationale,  Approach,  and  Design   39   II. Target  Demographics     41   III. Data  Analysis   41   IV. Sampling    42   V. Ethical  Considerations  and  Sampling  Errors   42   VI. Transcript,  Measurements,  and  Mechanism     43    Empirical  Findings  and  Analysis     45   I. Findings  and  In-­‐depth  Analysis     45   i. Interviews     45   ii. Questionnaires     51                 Page  ii  
  5. 5. Conclusions  /  Recommendations     65   I. Summary  and  Overview     65   II. Research  Limitations     65   III. Key  Points  of  Interest     67   IV. Relevant  Future  Research     68    References   69    Bibliography   74    Appendices   76   I. Appendix  A:  In-­‐depth  Interview  Semi-­‐structured  Questions   76   II. Appendix  B:  In-­‐depth  Interview  Transcripts   79   III. Appendix  C:  In-­‐depth  Interview  Framework  Analysis   90   IV. Appendix  D:  In-­‐depth  Interview  Demographic  Charts   94   V. Appendix  E:  Survey  Questions   97   VI. Appendix  F:  Survey  Results  Spreadsheet   105   VII. Appendix  G:  Survey  Objectives  Analysis  Sheet   136   VIII. Appendix  H:  Survey  Demographic  Charts   137   IX. Appendix  I:  Graphs  Mentioned  –  Quantitative  Analysis   140   a. Chart  1:     Design  of  brand  …  mood  I  am  in.   140   b. Chart  2:   Design  of  brand  …  colours  of  the  product.   140   c. Chart  3:   Design  of  brand  …  design  of  the  product.   141   d. Chart  4:   Design  of  brand  …  amount  the  product  costs.   141   e. Chart  5:   Design  of  brand  …  warranty  available  for  the  product   142   f. Chart  6:   Design  of  brand  …  reviews  from  other  sources.   142   g. Chart  7:   Design  of  brand  …  time  I  have  to  purchase  the  product     (time  allowed  to  spend  in  store)   143   h. Chart  8:   Design  of  brand  …  time  I  have  to  purchase  the  product     (limited  time  offer  items)   143   i. Chart  9:   Design  of  brand  …  colour  of  favourite  brand.   144   j. Chart  10:   Design  of  brand  …  colour  of  least  favourite  brand.   144   k. Chart  11:   Favourite  (and  Least)  Brand  Colours   145   l. Chart  12:   Whose  logo  am  I?  –  Bacardi   145   m. Chart  13:   Whose  logo  am  I?  –  Google  Chrome   146   n. Chart  14:   Whose  logo  am  I?  –  McDonalds   146   o. Chart  15:   Whose  logo  am  I?  –  Vodaphone   147   p. Chart  16:   Whose  logo  am  I?  –  Xerox   147               Page  iii  
  6. 6. q. Chart  17:   Which  brand  am  I?  –  Hummer   148   r. Chart  18:   Which  brand  am  I?  –  Jean-­‐Paul  Gaultier   148   s. Chart  19:   Which  brand  am  I?  –  Converse   149   t. Chart  20:   Which  brand  am  I?  –  Apple   149   u. Chart  21:   Which  brand  am  I?  –  Louis  Vuitton   150   v. Chart  22:   Use  of  Additional  Resources   150   w. Chart  23:   Difficulty  Thinking  of  a  Colour   151   x. Chart  24:   Difficulty  Matching  Logo  with  Brand   151   y. Chart  25:   Difficulty  Matching  Packaging  with  Brand   152   z. Chart  26:   I  have  heard  of  this  brand  …  computer  systems.   152   aa. Chart  27:   I  have  purchased  this  brand  …  computer  systems.   153   bb. Chart  28:   I  have  heard  of  this  brand  …  soft  drinks.   153   cc. Chart  29:   I  have  purchased  this  brand  …  soft  drinks.   154   dd. Chart  30:   I  have  heard  of  this  brand  …  hygiene  products.   154   ee. Chart  31:   I  have  purchased  this  brand  …  hygiene  products.   155   ff. Chart  32:   Purchasing  Habits   155   gg. Chart  33:   Has  your  opinion  changed  on  a  product  or  brand?   156   hh. Chart  34:   Currently  living  …  mood  I  am  in.   156   ii. Chart  35:   Currently  living  …  colours  of  the  product.   157   jj. Chart  36:   Currently  living  …  design  of  the  product.   157   kk. Chart  37:   Currently  living  …  amount  the  product  costs.   158   ll. Chart  38:   Currently  living  …  warranty  available  for  the  product  158   mm. Chart  39:   Currently  living  …  reviews  from  other  sources.   159   nn. Chart  40:   Currently  living  …  time  I  have  to  purchase  the  product     (time  allowed  to  spend  in  store)   159   oo. Chart  41:   Currently  living  …  time  I  have  to  purchase  the  product     (limited  time  offer  items)   160                 Page  iv  
  7. 7. Table  of  Figures    Figure  1:     Customer-­‐Based  Brand  Equity  Model   6  Figure  2:     Consumer  Decision-­‐Making  Process   19  Figure  3:     Marketer’s  Responses  to  Decision-­‐Making  Stages   21  Figure  4:     Influences  on  Consumer  Decision  Making   22  Figure  5:     Maslow’s  Hierarchy  of  Needs     24    Table  of  Tables    Table  1:     Brand  Equity  Components  and  Branding  Benefits   9  Table  2:     Case  Comparison  Study   15  Table  3:     Colour  Meaning  Comparisons   27  Table  4.1:     Wordmark  Examples   31  Table  4.2:   Lettermark  Examples   32  Table  4.3.1:   Symbol  Mark  (Pictorial)  Examples   33  Table  4.3.2:   Symbol  Mark  (Abstract)  Examples   34  Table  4.4:   Combination  Mark  Examples   35  Table  5:   Considerations  for  Package  Design   38  Table  6:   Top  5  Brand  and  Colour  Associations   55             Page  v  
  8. 8. Abstract    Brand   design   is   important   when   trying   to   market   a   product   or   service   into   a   new   or  already   established   market.   This   study’s   focal   point   rests   on   the   ultimate   question:  “How   does   brand   design   affect   consumer   purchasing?”   The   process   involves   a  comprehensive   understanding   of   the   most   current   literature   on   marketing   and  marketing   theories,   as   well   as   a   thorough   review   of   three   company-­‐rebranding   case  studies   and   a   comparison   between   them   all,   and   an   in-­‐depth   look   at   the   design  elements   and   features   of   branding   and   the   branding   process.   Additionally,   interviews  were   undertaken,   as   well   as   compiling   survey   data   pertaining   to   each   of   the   four   pre-­‐determined   objectives   to   back   up   the   researched   literature.   This   research   determines  that  brand  design  has  a  significant  impact  on  consumer  purchasing.             Page  1  
  9. 9. Introduction     I. Background  Summary  and  Rationale   With  the  variety  of  available  brands  on  store  shelves,  it  is  necessary  for  a  product   to  differentiate  itself  from  the  competition  (Recker  and  Kathman,  2001).  One  of   the   most   effective   tools   for   differentiation   is   within   the   nature   of   the   product   or   service’s  branding.  “Branding,  as  we  perceive  and  practice  it  today,  has  evolved   from   many   streams   of   thoughts,   ideas,   and   disciplines”   (Bevolo   and   Brand,   2003).   Essentially,   a   brand   should   embody   the   following   philosophy:   “I   am   not   what   I   think   I   am   and   I   am   not   what   you   think   I   am.   I   am   what   I   think   you   think   I   am”   (Jaffe   and   Nebenzahl,   2001:   11).   With   today’s   technological   advances,   “many   firms   are   tempted   to   globalize   their   own   brands”   (Aaker   and   Joachimsthaler,   2000:   308);   however,   “global   brand   strategy   is   often   misdirected”   (Aaker   and   Joachimsthaler,   2000:   309)   and   “the   key   to   a   global   brand   ...   is   finding   a   position   that   will   work   in   all   markets”   (Aaker   and   Joachimsthaler,   2000:   307).   When   creating   a   global   brand,   a   company   should   keep  in  mind  the  following  principles  (Aaker  and  Joachimsthaler,  2000:  308-­‐9):   • Different  market  share  positions  –  how  to  advertise  a  brand.   • Different  brand  images  –  how  to  design  a  brand.     • Preempted  positions  –  how  to  distinguish  a  brand.   • Different  customer  motivations  –  how  target  a  brand.   • Different  customer  responses  to  executions  and  symbols  –  how  to  localise   a  brand.     Three   of   the   more   recognised,   successful   global   brands   that   have   followed   these   principles   include   Apple   Computers,   Coca-­‐Cola,   and   Unilever’s   Dove.   These   brands   have   each   had   their   periods   of   failure   on   a   global   scale,   and   the   dissertation   will   briefly   discuss   how   they   managed   to   overcome   their   issues   through  corporate  re-­‐branding.  (Barnes,  2001;  FundingUniverse,  2004abc;  Haig,   2003:  13-­‐18;  Heller,  1996)                 Page  2  
  10. 10.   II. Purpose,  Aim,  and  Objectives   Through  researching  the  branding  stories  of  Apple,  Coca-­‐Cola,  and  Dove,  there  is   an  apparent  overlapping  theme  in  how  they  have  each  reached  the  top  positions   in   their   markets   today:   rebranding   from   the   bottom-­‐up.   The   study   will   answer   the   question,   “How   does   brand   design   affect   consumer   purchasing?”   The   following   objectives   have   been   explored   in   efforts   to   understand   more   information  on  this  topic:   Objective  1:   Gain   insight   into   the   world   of   brand   creation,   maintenance,   and   expiration.   Explored  by:   Researching   the   branding   industry’s   foundation,   principles,   theories,  and  models.   Objective  2:   Investigate  correlations  between  the  design  of  a  brand  and  how  it   affects  consumer-­‐purchasing  habits.   Explored  by:   In-­‐depth   analysis   of   the   Apple,   Coca-­‐Cola,   and   Dove   brand   case   studies,   as   well   as   further   research   on   consumer   behaviour,   patterns,  and  trends.   Objective  3:   Examine  the  sensory  features  of  brand  design.   Explored  by:   Researching  topics  on  colour  theory,  logo  development,  as  well  as   product  and  package  design.   Objective  4:   Identify   consumer-­‐purchasing   habits/trends   in   the   UK   and   US   markets.   Explored  by:   Exploring   consumer-­‐purchasing   habits   and   trend   studies   on   consumers  in  the  United  Kingdom  (UK)  and  United  States  (US).     Along  with  the  above  objectives,  it  was  necessary  to  analyse  these  brands  from   an   international   perspective,   researching   their   effectiveness   more   specifically   within   the   UK   and   US   markets.   Ultimately,   the   dissertation   disproves   the   following  null  hypothesis  based  on  found  literature  and  analysis:  “Brand  design  is   not  directly  linked  to  consumer  purchasing  habits.”             Page  3  
  11. 11. Literature  Review  I:  Sector  Overview     I. Branding  as  an  Industry   Whether  trying  to  develop  a  product  or  trying  to  sell  a  destination  hot  spot,  it  is   necessary   to   start   from   the   beginning   and   look   at   the   core   principles   and   foundations  of  what  branding  entails.  In  short,  branding  “means  adding  value  to   products”   (De   Mooij,   2005:   96),   but   what   are   those   values   it   adds   to   the   products?    “A  brand’s  values  are  what  it  stands  for  and  what  it  believes  in;  they   are   the   guidelines   that   form   its   moral   compass”;   “strong   brands   are   respected   for   their   values   and   are   defined   by   them”   (Hitchens   and   Hitchens,   2010:   109).   These   values   are   the   intangible   aspects   that   the   consumer   gives   the   brand   itself.   Some   of   the   strongest   global   brands   incorporate   one   or   a   number   of   the   following   attributes:   pioneering,   creativity,   innovation,   caring,   communication,   knowledge,   and   inspiration;   values   are   what   defines   a   brand.   (Hitchens   and   Hitchens,  2010:  110)     To  achieve  the  results  of  having  the  values  of  a  brand  correctly  identified  by  the   consumer,  it  is  necessary  to  keep  these  ideals  and  values  in  mind  in  all  stages  of   the  branding  development  process—from  conception  to  implementation:   • Idea   Generation   –   “identify   product   ideas   that   will   provide   important   customer   benefits   compatible   with   company   mission”   (Solomon   et   al.,   2009:  259-­‐60).   • Product   concept   development   and   screening   –   “expand   product   ideas   into   more   complete   product   concepts   and   estimate   the   potential   commercial  success  of  product  concepts”  (Solomon  et  al.,  2009:  259-­‐61).   • Marketing  strategy,  development  –  “develop  preliminary  plan  for  target   markets,  pricing,  distribution  and  promotion”  (Solomon  et  al.,  2009:  259,   261)   • Business   analysis   –   “estimate   potential   profit.   What   is   the   potential   demand,   what   expenditures   will   be   required,   and   what   is   the   cost   of   marketing  the  product”  (Solomon  et  al.,  2009:  259,  262)?               Page  4  
  12. 12. • Technical   development   –   “design   the   product   and   the   manufacturing-­‐ and-­‐production  process”  (Solomon  et  al.,  2009:  259,  262-­‐3).   • Test   marketing   –   “develop   evidence   of   potential   success   in   the   real   market”  (Solomon  et  al.,  2009:  259,  263-­‐4).   • Commercialisation   –   “implement   full-­‐scale   marketing   plan”   (Solomon   et   al.,  2009:  259,  264-­‐5).     The  best  brands  build  an  emotional  connection  with  their  consumer,  ultimately   forming   a   brand   loyal   relationship   between   the   brand   and   the   consumer.   (Solomon   et   al,   2009:   301)   When   building   a   brand,   it   is   important   to   note   the   equity  of  the  brand,  which  helps  the  consumer  to  identify  the  traits  of  the  brand.   Essentially,  brand  equity  is  the  value  the  brand  adds  to  the  business  against  the   standard,   generic   product   (Solomon   et   al,   2009:   301).   Brand   identity   can   be   classified   as   being   the   “visual   and   verbal   articulation   of   a   brand,   including   all   pertinent   design   applications,   such   as   logo,   business   card,   letterhead,   or   packaging”   (Landa,   2006:   5).   The   paper   will   discuss   both   aspects   within   branding   and  how  they  reach  their  target  consumers.     Within   brand   identity,   each   product   line   or   range   of   products   must   have   their   own,  uniquely  developed  brand  concept,  even  in  the  case  of  competing  brands   that   are   owned   by   the   same   parent   company—as   is   common   during   a   merger   between   companies   or   an   acquisition   of   another.   (De   Pelsmacker   et   al.,   2007:   13-­‐14)   Strong   brands   are   well-­‐known   brands   and   “well-­‐known   brands   are   also   capable   of   developing   favourable   attitudes   and   perceptions   more   easily   …   leading  to  more  sales.”  (De  Pelsmacker  et  al.,  2007:  15)       Kevin  Lane  Keller  has  visualised  this  concept  by  introducing  the  Customer-­‐Based   Brand   Equity   model,   which   accounts   for   several   aspects   of   the   brand   equity   components—brand   salience,   brand   performance,   brand   imagery,   consumer   judgments,  consumer  feelings,  and  consumer  brand  resonance  (Figure  1).               Page  5  
  13. 13.   Figure  1:    Customer-­‐Based  Brand  Equity  Model               CUSTOMER     BRAND     RESONANCE             CONSUMER   CONSUMER     JUDGMENTS   FEELINGS       BRAND   BRAND     PERFORMANCE   IMAGERY           BRAND  SALIENCE     Source:  Solomon  et  al.,  2009:  302     Keller’s  pyramid  poses  the  following  questions,  from  top  down  (Solomon  et  al.,   2009:  302):   • Relationships:  What  about  you  and  me?  –  Intense,  active  relationships   • Responses:  What  about  you?  –  Positive,  accessible  responses   • Meaning:   What   are   you?   –   Strong,   favourable,   and   unique   brand   associations   • Identity:  Who  are  you?  –  Deep,  broad  brand  awareness     The  report  has  broken  these  attributes  down  even  further  for  relevancy  with  De   Pelsmacker’s   model   into   four   distinct,   yet   overlapping,   categories—brand   awareness,   perceived   quality,   strong   brand   association   and   high   brand   loyalty   (De  Pelsmacker  et  al.,  2007:  59).   Brand   awareness   should   always   be   considered   throughout   the   branding             Page  6  
  14. 14. process—from   conception   to   implementation—as   there   are   many   benefits   presented   from   having   a   strong   brand   presence.   “A   brand   name   serves   as   a   shorthand   signal   for   favourable   brand   associations”   and   “gives   the   company   and   the   brand   a   sense   of   trustworthiness   and   the   image   of   commitment.”   (De   Pelsmacker  et  al.,  2007:  58)  Essentially,  the  more  times  someone  hears  of  or  sees   the  brand,  this  often  adds  to  a  better  recall  of  that  brand,  whether  the  consumer   uses   or   purchases   that   brand   or   not.   In   the   United   States,   there   are   often   television  advertisements  about  certain  stores  in  a  region  that  may  not  currently   be   open;   however,   when   that   store   opens,   the   region   is   already   familiar   with   that   store   because   of   having   previously   heard   or   seen   their   advertisements,   which  has  the  potential  to  influence  the  consumer  to  stop  by  the  store  to  check   it   out   in   person.     With   strong,   recognisable   brands,   there   is   often   an   understood   and  perceived  sense  of  quality  for  those  products.     Perceived  quality  is  another  aspect  of  brand  identity  that  should  always  be  in  the   forefront   of   the   branding   process.   If   the   public   perceives   one   product   to   be   better   over   another,   they   are   much   more   likely   to   purchase   that   product;   the   same   idea   works   with   brands.   “Higher   perceived   quality   as   well   as   a   positive   brand  personality  and  higher  customer  loyalty  give  the  company  the  opportunity   of   charging   a   premium   price”,   which   could   also   lead   to   higher   sales   in   certain   cases.  (De  Pelsmacker  et  al.,  2007:  58)  Tesco  has  recently  developed  their  “Tesco   Finest   ‘premium   quality’   own-­‐label   brand”   (Solomon   et   al.,   2009:   305).   Customers   have   automatically   perceived   this   brand   to   be   of   better   standards   than   the   generic   branded   products.   Because   of   this   perceived   added   value,   consumers   are   willing   to   spend   more   on   these   products.   Tesco   is   then   able   to   discount   the   generic,   national   brands   to   market   value   but   still   earn   profits   on   their   own-­‐label   products.   (Solomon   et.   al,   2009:   305)   With   this,   a   perceived   sense   of   quality   relates   a   strong   brand   association   and   creates   potential   for   developing  a  brand  loyal  relationship  between  the  consumer  and  the  brand.                 Page  7  
  15. 15. Strong   brand   association   gives   leeway   for   a   brand   to   potentially   delve   into   other   product  lines  or  brand  extensions  using  the  same  brand  name.  “The  image  and   personality  of  the  brand  is  easily  carried  over  to  the  new  product,  giving  it  a  head   start”   above   the   competition.   (De   Pelsmacker   et   al.,   2007:   58-­‐9)   Although,   it   is   necessary   to   ensure   that   there   is   a   logical   and   strategic   planning   behind   this   sort   of   initiative   (Lindstrom,   2010:   112).     Coca-­‐Cola   has   been   able   to   extend   their   product   offerings   to   an   enterprise   of   over   400   brands   globally   (The   Coca-­‐Cola   Company,   1886).   While   Coca-­‐Cola   enthusiasts   have   lauded   this   effort,   certain   brand  extensions  may  not  always  be  the  best  move  for  the  company  (Haig,  2003:   63).  When  a  customer  has  developed  a  strong  relationship  with  a  certain  brand,   they  are  then  more  likely  to  purchase  their  brand  extension  products  as  well.  The   merge   over   to   additional   product   purchasing   is   due   to   brand   loyalty.   (De   Pelsmacker  et  al.,  2007:  59)     High   brand   loyalty   is   a   major   advantage   to   the   manufacturer   and   retailer,   as   it   is   “cheaper  to  retain  an  existing  loyal  customer  than  to  win  over  a  new  one.”  High   brand  loyalty  also  allows  for  the  company  to  count  on  their  products  selling  from   store   shelves.   Of   the   brand   equity   components,   this   is   arguably   the   most   important  to  a  business  as  it  focuses  predominantly  on  costs  and  sales  retention.   (De  Pelsmacker  et  al.,  2007:  59)  As  an  example,  Burberry  has  a  variety  of  product   offerings   between   their   colognes   and   perfumes   to   their   famous   patterned   scarves,  handbags,  and  wallets.  Because  of  their  distinct  patterns  and  fragrances,   it   is   possible   that   Burberry   has   been   able   to   maintain   a   loyal   following   of   consumers.  If  this  is  the  case,  each  time  they  launch  a  new  product,  they  do  not   have  to  ‘sell’  those  items  to  their  current  consumers,  but  rather  ‘inform’  them  of   their   availability.   Because   of   the   relationship   and   trust   that   has   developed   between  the  company  and  consumer,  there  is  an  automatic  assumption  on  the   behalf   of   the   consumer   that   the   new   product   will   maintain   the   same   quality   and   standards  of  the  products  they  may  have  previously  purchased.                 Page  8  
  16. 16. Table  1:    Brand  Equity  Components  and  Branding  Benefits   Brand  Equity  Components   Benefits       Brand  Awareness   • Brand  in  evoked  set   • Influence  on  attitude  and  perceptions   • Anchor  of  associations   • Signal  of  substance/commitment         Perceived  Quality   • Price  premium   • Differentiation  /  positioning   • Reason  to  buy   • Channel  member  interest   • Brand  extension  potential         Strong  Brand  Associations   • Differentiation  /  positioning   • High  price  premium   • Memory  retrieval  potential   • Reason  to  buy   • Brand  extension  potential         High  Brand  Loyalty   • Reduced  marketing  costs   • Trade  leverage   • Attracting  new  customers   • Time  to  respond  to  competitive  threats     Source:    De  Pelsmacker  et  al.,  2007:  59     As   shown   in   Table   1,   there   are   several   overlapping   benefits   within   each   brand   equity   component.   This   overlap   demonstrates   just   how   intertwined   and   necessary   each   component   is   to   the   branding   process.   (De   Pelsmacker   et   al.,   2007:  59)     II. Revitalisation  of  Brands   There   are   many   successful   brands   that   have   developed   over   the   years,   none   more   successful   and   recognisable   than   Apple,   Coca-­‐Cola,   and   Dove;   however,   these   brands   were   not   always   at   the   top   of   their   market   (Funding   Universe,   2004abc).   It   seems   as   though   every   brand—at   one   point   or   another—must             Page  9  
  17. 17. reinvent   itself   to   stay   competitive   within   their   industry   or   market.   These   particular  brands  went  through  a  period  of  failure  before  their  revitalisation.       i. Apple,  Inc.   Apple  Computer,  Inc.,  headquartered  in  Thousand  Oaks,  California,  USA  and  now   aptly   called   Apple,   Inc.   (Oppenheimer   and   Rosenberg,   2007:   2)   was   founded   in   1976   by   two   computer   gurus   and   became   some   of   the   first   innovators   in   the   creation,   selling,   and   distribution   of   the   personal   computer   in   the   1980s   (FundingUniverse,   2004:   Apple;   The   Apple   Museum,   1998).   Today,   “Apple   committed   to   bringing   the   best   personal   computing   experience   to   students,   educators,   creative   professionals   and   consumers   around   the   world   through   its   innovative   hardware,   software   and   Internet   offerings.”   With   the   beginning   of   their   personal   computer   in   1984,   Apple   paved   the   way   for   industrial   design   techniques  that  are  still  being  used  in  practise  today.  (FundingUniverse,  2004a)   In   the   present   day,   Apple   has   a   wide   range   of   technological   product   offerings   including:  personal  computers,  cellular  phones,  software,  mp3  players,  and  more   (Apple,  Inc.,  1976).     Apple  has  not  always  been  one  of  the  leading  forefronts  for  personal  computers;   in  fact,  it  has  arguably  only  been  in  the  last  10-­‐15  years  that  they  have  been  able   to  re-­‐establish  themselves  as  a  leading  brand.  The  year  1996  was  a  deciding  year   for  Apple,  Inc.  It  was  within  that  year  Apple  decided  they  needed  a  new  direction   and   to   regain   leadership   from   Apple   founder,   Steve   Jobs   (who   rejoined   in   1997).   The  product  offerings  from  Apple  had  faded  from  the  market  and  were  no  longer   deemed   to   be   the   ‘latest   and   greatest’   of   their   kind.   Microsoft   Windows   was   releasing   new   products   and   ranges   in   a   consistent   stride,   whereas   Apple   had   fallen  short  to  consumer  demand.  Most  home  purchases  at  that  time  were  going   to  Microsoft  products.  (Anon,  1996)  To  regain  entry  into  the  market,  Jobs  hired   their   original   advertising   agency   that   then   launched   an   extremely   successful   campaign  with  the  product  release  of  the  improved  iMac  computer  system.                 Page  10  
  18. 18. The   campaign   “featured   black   and   white   portraits   of   famous   people   …   [and]   included:   Albert   Einstein,   Richard   Branson,   Muhammad   Ali,   Mahatma   Ghandi,   Amelia  Earhart  and  Pablo  Picasso”  (Hitchens  and  Hitchens,  2010:  42).  Instead  of   ‘standard’   campaign   advertisements,   Apple   placed   their   ads   within   the   mainstream   media,   such   as   newspapers   (which   appealled   to   the   ‘average   Joe’   consumer).   This   campaign   was   a   stem-­‐off   from   their   original   1984   campaign   of   ‘Think  Differently’,  and  is  responsible  for  regaining  interest  with  their  current  and   potentially   new   consumers.   With   this   campaign,   innovative   techniques   were   introduced  to  add  to  their  computer  systems.  (Hitchens  and  Hitchens,  2010:  42;   The  Apple  Museum,  1998;  Anon,  1996)       Apple  aroused  the  curiosity  of  consumers  through  the  expression  of  their  brand   identity.   (Kapferer,   2001:   29)   Apple   maintained   their   presence   of   being   able   to   differentiate   their   product   from   the   rest   of   the   market   and   in   doing   so,   they   “gave   the   brand   the   ability   to   communicate   its   distinctiveness   on   a   level   which   transcended   physical   and   material   considerations   and   the   basic   advantages   of   the   actual   product.”   (Kapferer,   2001:   212)     The   primary   contributing   factor   to   Apple’s  brand  success  lies  within  its  ability  to  look  and  feel.       This  sensory  concept  relates  back  to  the  founding  principles  of  brand  design,  as  it   goes   “back   to   design   basics,   to   how   design   elements   communicate   visually”.   Apple   is   sleek   in   their   product   and   package   designing,   as   well   as   for   any   Apple   compatible   components.   The   Apple   brand   itself   is   a   symbolic   name   that   compliments  their  product  offerings.  Like  their  products,  the  Apple  brand  name   is   an   allegorical   (symbolic)   name   “that   expresses   their   nature   through   an   illusion   to  an  allegory  or  a  symbol”.  The  Apple  brand  alludes  to  the  tangible  fruit  object   of  an  apple;  however,  is  a  metaphoric  reference  to  being  in  the  core  of  it  all.  All   of   Apple’s   brand   extensions   are   representative   of   the   same   metaphorical   movement  by  using  the  “i”  notion,  which  is  representative  of  being  interactive,   differentiating  Apple  from  other  product  brands.    (Landa,  2006:  112,  126)   ii. The  Coca-­‐Cola  Company             Page  11  
  19. 19. The  Coca-­‐Cola  Company  was  founded  in  1886  in  Atlanta,  Georgia,  USA,  where  it   is  still  headquartered  today,  and  is  the  leading  beverage  provider  throughout  the   world  (The  Coca-­‐Cola  Company,  1886).  Their  number  one  market  is  in  soft  drinks,   in  which  they  are  selling  an  average  of  1.3  million  bottles  every  day  around  the   world.  Coca-­‐Cola  is  truly  a  global  brand  with  70%  of  sales  generating  outside  of   North   America   and   offering   nearly   400   brands   in   over   200   countries.   (FundingUniverse,   2004b;   The   Coca-­‐Cola   Company,   1886)   The   Coca-­‐Cola   Company  has  developed  itself  “into  one  of  the  most  powerful  and  admired  firms   in   the   world”   through   expertise   in   the   following   areas:   consumer   marketing,   infrastructure,   product   packaging,   and   customer   marketing   (FundingUniverse,   2004b).  Through  their  success,  Coca-­‐Cola  decided  to  try  a  new  brand  extension   into  an  entirely  new  market,  away  from  soft  drinks.     Brand   extension   is   often   thought   to   be   necessary   and   profitable   when   they   have   dominated   and   saturated   their   current   markets.   Unfortunately   for   Coca-­‐Cola,   they   reached   a   period   of   brand   failure   trying   to   launch   their   own   range   of   clothing.  This  proved  to  be  a  complete  flop  and  was  quickly  withdrawn  from  their   main  selling  items,  with  the  exception  of  selling  these  goods  in  their  own  Coca-­‐ Cola  stores.  Aside  from  this  range  of  product  failures,  they  have  been  successful   on  a  global  scale  with  their  brand  extensions  into  diet  and  flavoured  cola  drinks.   In  fact,  Coca-­‐Cola  has  been  so  successful  in  these  markets  that  they  were  able  to   force  the  Virgin  Cola  brand  off  store  shelves  through  dominating  the  market  by   such  a  majority.  (Haig,  2003:  63-­‐5,  84)     One   of   the   ways   Coca-­‐Cola   has   been   able   to   dominate   the   cola   market   for   so   long   is   due   to   maintaining   a   solid   brand   identity.   Coca-­‐Cola   has   always   implemented   a   “carefully   planned   strategic   brand   identity   that   is   memorable,   consistent,   and   distinctive”   (Landa,   2006:   5).   Coca-­‐Cola   has   been   able   to   develop   their  identity  through  practising  the  following  principles:   • Using   an   explanatory   brand   name,   that   is   a   name   to   best   explain   or   describe  the  product  or  service  (Landa,  2006:  126).             Page  12  
  20. 20. • Employing   a   well   known   and   recognisable   tagline   (slogan),   such   as   “Drink   Coca-­‐Cola”   or   “Always   Coca-­‐Cola”   and   most   recently   “The   Coke   Side   of   Life”  (Landa,  2006:  145;  Coke  Lore,  2010)   • Utilising  product  placements  within  TV  and  film  (Landa,  2006:  187).       All  in  all,  Coca-­‐Cola  demonstrates  a  strong  brand  with  proven  success;  however,   it  is  important  to  look  through  the  brand’s  complete  history  to  see  the  future  of   the  brand  and  not  to  repeat  the  same  mistakes.  (Haig,  2003:  65)     iii. Unilever,  Dove  brand     Unilever  is  divided  into  two  companies  coinciding  in  business  strategies:  Unilever   PLC  (based  in  the  United  Kingdom)  and  Unilever  N.V.  (based  in  The  Netherlands).   Nearly  52%  of  Unilever’s  revenues  are  spread  throughout  a  variety  of  sectors  and   maintain   production   facilities   in   88   countries   while   selling   in   an   additional   70   countries,   making   Unilever   a   global   parent   brand.   Accounting   for   the   top   two   revenue   sources   include   Europe   at   47%   and   North   America   at   21%.   (FundingUniverse,  2004c)     Originally  a  US-­‐only  product,  the  Dove  brand  has  developed  into  the  third-­‐most   widely   distributed   and   used   product   within   Unilever.   Beginning   as   a   soap   bar,   Dove   now   competes   in   the   body   wash,   shampoo,   and   conditioner   product   sectors.   In   2004,   the   Dove   brand   created   one   of   the   most   widespread,   viral   marketing   campaigns   of   the   decade   by   portraying   ‘real   beauty’   of   ordinary   women.  (AdBrands,  1998;  Dove,  1998)     Unfortunately,   Dove   also   had   their   share   of   hard   times   with   the   consumers,   in   particular  within  the  Asian  markets.  Dove  has  implemented  their  ‘Campaign  for   Real   Beauty’   all   over   the   world   with   much   success;   however,   the   consumers   aggressively  dismissed  their  entry  into  the  Chinese  market  and  other  “countries   where   the   concept   of   idealized   beauty   still   held   sway”   (Hollis,   2009).     This   failure   was   due   to   the   fact   that   “a   model   on   billboards   is   something   that   women   do   aspire   to,   and   feel   is   attainable”   whereas   in   the   Western   cultures,   these             Page  13  
  21. 21. advertisements  were  much  more  effective  and  were  more  familiar.  (Hollis,  2009)     To  overcome  this  obstacle,  Dove  has  localised  their  brand  for  these  specific  areas   by  introducing  a  new  ‘Ugly  Duckling’  campaign.  The  difference  between  the  two   campaigns  lies  in  the  subject  matter.  The  ‘Real  Beauty’  campaign  puts  focus  on   saying  that  not  everyone  is  perfect  and  decided  to  use  real  women  as  models  in   their  advertisements,  where  as  the  ‘Ugly  Duckling’  campaign  is  built  around  the   Dove  brand  itself—unveiling  one’s  own  inner  beauty  by  using  the  Dove  products.   This  transition  of  advertising  has  proved  successful  for  Dove  in  the  Chinese,  and   other  similar,  markets.  (Hollis,  2009)       Through   localising   their   brand,   Dove   has   been   able   to   maintain   their   overall   brand   identity   by   successfully   managing   to   “consistently   introduce   innovative   ingredients   and   consumer   benefits”   (De   Mooij,   2005:   30)   into   their   core   message.  Like  the  case  of  the  Chinese  market,  Dove  has  been  able  to  preserve  its   holdings   in   the   Indian   market   by   using   local   traditions   and   practises   in   the   formulation  of  their  brand  identity  (Haig,  2003:  135).  Because  of  their  willingness   to   globally   localise   their   brands,   Dove   still   remains   successful   in   its   global   competitive  market.  (Haig,  2003:  221)     As   previously   mentioned,   the   main   component   the   Dove   brand   highlights   is   on   the   localisation   of   their   products;   however,   it   must   also   be   noted   that   this   is   just   one  facet  of  many  that  Dove  implements  to  ensure  that  their  brand  is  successful.   For  instance,  the  Dove  brand  identity  is  strategically  managed  to  execute  product   differentiation,   as   well   as   a   keen   effort   and   focus   on   their   sensory   values.   This   type   of   brand   identity   reassures   the   consumer   on   the   quality   of   their   product   by   having   them   as   distinctive,   relevant,   and   aspirational   as   possible.   (Lindstrom,   2010:  162)                       Page  14  
  22. 22. iv. Comparisons  of  Cases     It  has  been  noted  in  each  case  that  the  major  themes  of  successful  reinvention   was   through   restructuring   their   brand   identity.   The   following   table   shows   a   balance  of  the  similarities  and  differences  within  each  case:     Table  2:    Case  Comparison  Study     Apple   Coca-­‐Cola   Dove   Strategic  Brand   Yes   Yes   Yes   Identity   Differentiation   Yes     Yes   i-­‐Pod   Body  Wash   Brand  Extensions   Diet  Cola   i-­‐Pad   Shampoos   (Successes)   Flavoured  Cola   i-­‐Tunes   Conditioners   Brand  Extensions   Coca-­‐Cola       (Failures)   Clothing   Localisation  Efforts     Yes   Yes   Sensory  Values   Yes   Yes   Yes       As   demonstrated   in   Table   2,   each   brand   has   had   their   own   way   of   reinventing   themselves  as  a  market  leader;  however,  the  dominating  themes  amongst  them   all  include  a  strategic  brand  identity,  successful  lines  of  brand  extensions,  and  a   focus   on   sensory   values.   These   are   arguably   the   three   most   important   aspects   in   branding.   The   idea   of   creating   a   strong   brand   identity   has   been   deeply   discussed   already;   for   the   purpose   of   the   report,   brand   extensions   will   not   be   heavily   discussed;   and   the   idea   of   sensory   values   will   be   mentioned   later   within   this   document.               Page  15  
  23. 23. Literature  Review  II  –  Marketing  Theory     I. Purchasing  Habits  in  the  UK  and  US   There  are  many  emerging  trends  over  recent  years  in  response  to  national  crises   (9/11  in  the  US;  financial  crises  in  the  UK  and  US),  the  global  ‘green’  movement,   as  well  as  the  Internet  boom.  When  the  9/11  terrorist  attacks  happened  in  the   United   States,   there   was   a   resurgence   of   American-­‐made   products   being   purchased   throughout   the   nation   (Maja,   2002).   Responding   to   this   crisis,   Americans’  “feelings  of  patriotism  and  love  of  country”  became  forefront  in  their   purchasing   habits   (Maja,   2002)   through   buying   American   flags,   car   decals,   and   other   forms   of   seemingly   frivolous   merchandise.   A   mere   seven   years   after   the   United  States  was  struck  with  this  horror,  a  financial  crisis  developed  across  the   United  States  and  United  Kingdom,  as  well  as  many  other  countries  all  over  the   world   (CashMoneyLife,   2008).   Consumers   became   fearful   of   their   once   secure   investments   and   panicked   on   what   to   do   with   their   savings   and   pension   plans,   if   they   still   had   any   left   (Osborne,   2008).   Contrary   to   what   most   people   would   believe,  “consumers  are  becoming  wealthier,  but  the  global  economic  crisis  has   prompted  consumers  to  scrupulously  re-­‐evaluate  their  spending  habits”  (Anon.,   2009c).       Another  recent  trend  in  consumer  purchasing  is  the  ‘go  green’  philosophy,  which   companies   all   over   the   world   are   trying   to   implement   (Revnew,   2009).   The   ‘go   green’   movement   has   taken   off   and   now   “people,   companies,   cities,   and   even   countries”  (Hofheimer,  2008)  are  beginning  to  implement  these  strategies.  Many   consumers   are   doing   their   research   and   “want   to   know   that   the   manufacturer   we   purchase   from   has   taken   steps   to   reduce   its   environmental   footprint”   (Revnew,   2009).   This   idea   of   ‘going   green’   is   only   a   recent   development   within   the  last  ten  years.  Previously,  it  was  thought  of  simply  as  “stay  in  bed  an  extra   hour”,   but   today   is   means   “turning   off   the   lights,   recycling   waste,   installing   waterless  urinals  ...  and  investigating  in  green  technology.”  (Lim  Lay  Ying,  2007)                 Page  16  
  24. 24. As  Hofheimer  states,  the  “greening  trend  is  large,  important,  and  emerging  as  a   significant   shift   in   thinking   about   our   business,   civic,   and   personal   lives”   (Hofheimer,   2008);   however,   only   a   small   percentage   (roughly   4%)   of   people   are   “driving   consumer   awareness   on   green   trends   and   the   efficacy   of   companies’   environmental  claims”  (Anon.,  2008a).  These  ‘greenfluencers’  are  typically  more   educated,   earning   higher   salaries,   and   are   under   35   years   of   age   (Anon.,   2008a).   In   a   survey   conducted   by   RSR   Research,   “better-­‐performing   retailers   ...   are   ‘greening’   their   brands   now   in   anticipation   of   future   consumer   demand”;   however,   around   50%   of   those   surveyed   are   concerned   with   how   great   the   return  on  investment  will  be  in  the  long-­‐term.  (Canning,  2008)     A   third   focal   point   on   consumer   purchasing   habits   should   be   within   the   use   of   the   Internet,   as   consumers   are   utilizing   this   tool   to   its   fullest   advantage.   “Spending  online  has  never  been  so  rewarding”  and  “the  online  retail  market  is   growing   rapidly”   (Anon.,   2006).   For   customers   to   remain   loyal,   especially   in   an   online   environment,   it   is   necessary   for   a   company   to   offer   various   rewards   or   incentives  to  increase  the  likelihood  for  repeat  purchases.  “Customers  like  added   value   ...     [and]   a   new   breed   of   online   loyalty   and   reward   programmes   has   emerged”   (Anon.,   2006).   However,   with   these   reward   and   loyalty   programmes   comes   a   potential   loss   of   privacy,   as   “data   on   the   purchasing   habits   of   tens   of   millions  of  customers  are  recorded  every  time  they  use  a  store  loyalty  card  and   tens   of   millions   more   credit   and   debit   card   purchases   are   equally   monitored,   stored   and   ultimately   put   to   use   for   other   peoples   financial   gain”   (Watson,   2008).   Even   without   registering   with   a   particular   programme,   every   time   someone   uses   their   Internet   browser,   the   data   collection   process   begins   (Watson,   2008).   When   comparing   the   UK   and   US   consumer,   “the   average   UK   consumer   will   spend   40   percent   more   online   than   the   average   US   consumer   and   make  24  percent  more  purchases  online”  (Anon.,  2008b).  In  fact,  UK  consumers   are  much  more  likely  to  have  an  aggressive  research  approach  before  making  a   purchase  and  13%  more  likely  to  be  a  frequent  online  shopper.                 Page  17  
  25. 25. One   ever-­‐present   theme   running   between   the   two   subjects   (United   Kingdom   and   United   States)   is   that   they   are   both   masculine-­‐based   and   individualistic   cultures.  Both  the  UK  and  US  are  more  influenced  by  advertisements  relating  to   an  individual  than  a  group  association,  which  must  be  taken  into  account  by  the   company   for   when   these   consumers   go   shopping.   Additionally,   these   consumers   enjoy  hearing  or  reading  testimonials  about  how  products  helped  others.  If  the   company   does   not   know   their   target   audience,   then   they   will   not   effectively   reach   the   potential   masses   that   they   should   be   targeting.   (De   Mooij,   2005:   70-­‐1,   111,  142)     When   advertising   to   consumers,   companies   may   choose   to   implement   a   push   or   pull  strategy  (Solomon  et  al.,  2009:  415):   • Push  Strategy  –  “the  company  wants  to  move  its  products  by  convincing   members   of   the   distribution   channel   such   as   wholesalers,   agents,   or   retailers  to  offer  them  and  entire  their  customers  to  select  these  items.”   • Pull  Strategy  –  the  company  “counts  on  consumers  wanting  its  products   and  so  convincing  retailers  to  respond  to  this  demand  by  stocking  them.”     Both   are   important   and   effective   strategies   when   used   properly.   Because   the   UK   and  US  are  more  individualistic  in  nature,  a  pull  strategy  may  be  more  effective   on  these  customers  as  efforts  are  focused  on  attracting  the  individual  consumer.   Additionally,  this  type  of  strategy  has  proven  successful  through  the  case  study   of   Proctor   &   Gamble   dropping   their   consumer   sales   budget   nearly   in   half   and   implementing  a  ‘value  pricing’  strategy.  (Solomon  et  al.,  2009:  415-­‐6)     II. Consumer  Behaviour,  Patterns,  and  Trends   Consumer  behaviour  is  an  integral  part  of  any  marketing-­‐related  element,  as  it  is   imperative  that  businesses  are  able  to  understand  the  needs  and  desires  of  their   customers.  By  definition,  consumer  behaviour  is  “the  study  of  how,  where,  when   and  why  we  conduct  the  exchange  elements  of  our  lives  to  satisfy  our  needs  and   desires.”   (Anon.,   2009a;   Solomon   et   al.,   2009:   148)   When   a   consumer   often             Page  18  
  26. 26. needs   to   choose   between   products,   and   they   are   not   loyal   to   a   specific   brand,   they  rely  on  their  intuition  to  make  the  best  decision.     Unfortunately,   there   is   no   possible   way   to   know   exactly   how   consumers   will   respond  to  anything—advertisements,  products,  brands,  etc.;  however,  there  is   a  commonly  accepted  way  of  determining  the  decision-­‐making  process,  which  is   outlined  in  Figure  2.     Figure  2:    Consumer  Decision-­‐Making  Process               STEP  1:   STEP  2:   STEP  3:   STEP  4:   STEP  5:   PROBLEM   INFORMATION   EVALUATION   PRODUCT   POST-­‐   RECOGNITION   RESEARCH   OF  OPTIONS   CHOICE   PURCHASE   EVALUATION           Source:  Solomon  et  al.,  2009:  150     It   is   highly   imperative   that   this   entire   process   is   considered   when   developing   a   brand.  This  process  is  outlined  in  following  scenario  of  purchasing  a  new  laptop   computer:   • Step   1:   Problem   Recognition   –   “occurs   whenever   a   consumer   sees   a   significant   difference   between   their   current   state   of   affairs   and   some   desired  or  ideal  state”  (Solomon  et  al.,  2009:  151).   Example:    A  consumer  is  looking  to  purchase  a  new  laptop  computer.     • Step   2:   Information   Research   –   “the   consumer   checks   his   memory   and   surveys   the   environment   to   identify   what   options   are   out   there   that   might  solve  his  problem”  (Solomon  et  al.,  2009:  152-­‐3).   Example:  The  consumer  recalls  all  of  the  brand  names  with  which  they  are             Page  19  

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