Ethical Consumers, Simplux brands and Social Communication October 2008

“ My heart’s desire is to forge in the smithy of my soul the uncreated conscience of my race. And then see if I can get them mass-produced in plastic. ” Woody Allen

“ My heart’s desire is to forge in the smithy of my soul the uncreated conscience of my race.

And then see if I can get them mass-produced in plastic. ”

Woody Allen

Transparency

Remember The Good Old Days? $5 What is it? Who made it? What’s it made from? What does it taste like? Where does it come from? How can I get one more cheaply? Who would drink a beer like this?

1950s-70s. The Opacity System…Focused on features and benefits. A great model for an industrial economy. Opaque customers – marketing is based on inspired guesswork Opaque products – any colour you like, as long as it’s what we have in stock Opaque organisations – a golden age for conglomerates and aspiring monopolists Opaque markets – persuasion ethos. Consumers trapped by choice, location, transportation and social class

Opaque customers – marketing is based on inspired guesswork

Opaque products – any colour you like, as long as it’s what we have in stock

Opaque organisations – a golden age for conglomerates and aspiring monopolists

Opaque markets – persuasion ethos. Consumers trapped by choice, location, transportation and social class

Brand value = Opacity Premium (n) Branding: the art of making money by concealing knowledge from targeted customers

Opacity heroes…

The 80s and 90s. The Translucency system. Focused on experiences. A great model for the service-economy. Translucent customers – guesswork replaced by data-driven speculation. The rise, demise and repr i se of CRM … Translucent products – previously hidden ingredients and processes move ‘front of brand ‘(wholegrain, small batch, gluten-free, low fat, freshly-baked, in store…) … Translucent organisations – TBL/ESG reporting, philanthropy, and community appeasement programmes… Translucent markets – challenges to supplier-fixed pricing, price comparison sites, widespread re-intermediation…

Translucent customers – guesswork replaced by data-driven speculation. The rise, demise and repr i se of CRM …

Translucent products – previously hidden ingredients and processes move ‘front of brand ‘(wholegrain, small batch, gluten-free, low fat, freshly-baked, in store…) …

Translucent organisations – TBL/ESG reporting, philanthropy, and community appeasement programmes…

Translucent markets – challenges to supplier-fixed pricing, price comparison sites, widespread re-intermediation…

Brand value = Translucency Premium (n) Branding: the art of making money by selectively sharing knowledge with self-nominating customers

Translucency heroes…the master storytellers…

The Marketisation of everything The Socialisation of everyone The New “Social Market” Osmotic Individuals Porous Organisations The age of transparency

(n) Branding: the art of making money by improving decision quality for any stakeholder

Transparency heroes…the social marketers…

Ethics

Oh…my…god It’s all just too depressing…

And much too big for me to tackle…

So let me start somewhere…

Source: AccountAbility/NCC Consumer Accountability could change the world…

Source: AccountAbility/NCC Consumers are actively seeking engagement…

Source: AccountAbility/NCC They want to trust you…

Source: AccountAbility/NCC And are prepared to reward you…

Transparency meets Ethics Rethinking brands?

Historically, fashion has successfully navigated two countervailing trends…

Simplicity Universal Seasonal Low cost Easycare Flexible Replaceable Disposable

Universal

Seasonal

Low cost

Easycare

Flexible

Replaceable

Disposable

Extreme quality Aesthetic appeal Expensiveness Scarcity Superfluousness Time incorporation Dubois and Paternault via: http://www.janusthinking.com/2006/12/what-is-luxury-the-no-need-need/

Extreme quality

Aesthetic appeal

Expensiveness

Scarcity

Superfluousness

Time incorporation

Convergence? Simplicity ?

Route 1. Make simplicity feel more luxurious … Universal => Restricted runs Seasonality => Micro-seasonality Low cost => High Value Easycare => Action-wear Flexibility => Continuity Replaceability => Durability vs Fragility

Universal => Restricted runs

Seasonality => Micro-seasonality

Low cost => High Value

Easycare => Action-wear

Flexibility => Continuity

Replaceability => Durability vs Fragility

What happens when we make the Simple more Luxurious? Masstige Simplicity Michael Silverstein and Neil Fiske “Luxury for the masses”

Masstige brands

BUT … generally, the “ Masstige ” solution involves… Remote manufacture Low cost materials Built-in obsolescence Unsustainable processes ‘ Over-marketing’ Gratuitous consumption … … it’s hardly “ethical”…

Remote manufacture

Low cost materials

Built-in obsolescence

Unsustainable processes

‘ Over-marketing’

Gratuitous consumption …

… it’s hardly “ethical”…

Is there another way? Simplicity ?

Is there another way? Simplicity Simplux?

Simplux. The Examined brand. Sharing what’s inside … Address Ethics. Embrace Transparency. And Socialise … Aesthetic appeal => Craftsmanship Quality => Integrity Scarcity => Originality Expensiveness => Equity Time incorporation => Authenticity Superfluousness => Altruism

Aesthetic appeal => Craftsmanship

Quality => Integrity

Scarcity => Originality

Expensiveness => Equity

Time incorporation => Authenticity

Superfluousness => Altruism

Craftsmanship

Integrity

Originality

Equity

Authenticity

Altruism

Bringing it all together: Social Communication

Social Communication Limitless extension Validation Sharing Show me Rich detail Remove barriers Assurance Real time!

A parting thought… Transparency changes everything. Are you ready?

Transparency changes everything.

Are you ready?

Speaker biography Tim Kitchin, Partner Brand Strategist Tim Kitchin is a broad-based branding expert with extensive experience of CSR, environmental and policy-making arenas. His passion is to help brands build social capital . Tim is a founding partner of Glasshouse Partnership and an associate senior adviser to the ethical thinktank AccountAbility, He is also a member of brand think-tank, the ‘Medinge Group’, responsible for the annual ‘Brands with a Conscience’ awards. He was a member of the international advisory panel for the UN Environment Programme’s ‘Talk the Walk’ initiative; and was special editor of the journal of brand management for its first issue on CSR. He was a co-author of ‘Managing Corporate Reputations’ and ‘Beyond Branding’ (both Kogan Page). Contact: [email_address]

Tim Kitchin, Partner

Brand Strategist

Tim Kitchin is a broad-based branding expert with extensive experience of CSR, environmental and policy-making arenas.

His passion is to help brands build social capital .

Tim is a founding partner of Glasshouse Partnership and an associate senior adviser to the ethical thinktank AccountAbility,

He is also a member of brand think-tank, the ‘Medinge Group’, responsible for the annual ‘Brands with a Conscience’ awards.

He was a member of the international advisory panel for the UN Environment Programme’s ‘Talk the Walk’ initiative; and was special editor of the journal of brand management for its first issue on CSR.

He was a co-author of ‘Managing Corporate Reputations’ and ‘Beyond Branding’ (both Kogan Page).

Contact: [email_address]