BrandDigital | BrandSimple: The Blog

One of the best things about my job is not only helping companies improve their business operations through branding, but simply having thought provoking conversations with professionals about the latest trends and challenges of the business. Saurabh Sharma, Strategic Planning Director at Ogilvy & Mather in Beijing, recently raised a great question about the role of transparency when communicating to a multifaceted consumer, and I thought it was worthwhile to share with you.

Question:

In BrandDigital, you have mentioned the need for brands to be honest and transparent. Last year, Timberland CEO, Jeff Swartz said in an interview with Fast Company that his company had to discontinue its sourcing from China because of what he called “violations to human dignity” that underscored the business model of the supplier called Kingmaker. This had an adverse effect, as prices went up and the timing of this event was really bad. Needless to say that this would have contributed to the subsequent decline in Timberland’s sales. How do you think the brand can reconcile the need for transparency and ethics when consumers are not at all obliged to return the favor? Customer is absolutely the king, but how can brands manage consumer hypocrisy when they demonstrate one set of standards as citizens and dwellers of this planet and another set of standards as consumers of products and services.

Answer:

One of the most challenging dimensions of marketing is, and always has been, the ability to separate what consumers say they will do and what they actually do when they get to the shopping aisles. While there have been many advances in research methods relative to how consumers will behave when it’s time for them to reach for their wallets, this question still stands as one of the biggest leaps of faith a marketer must make. In fact, there are very few consumers today who would not give the “socially acceptable” answer to questions concerning their intent to buy goods that save the planet, or from brands that stand for social responsibility. That said, marketers must look at “doing good” as a long-term business objective, not a short-term promotional effort, if they want to change the way consumers perceive their brands and become loyal to these brands. If the purpose of the company is built upon, and operationally driven, by doing good, it must be willing to live with two or three quarters of less than great sales as it builds this image in the minds of consumers.

Image via timberland.com

image courtesy of MichiganMoves via Flickr

Among the many questions being asked of brand professionals during this crisis of confidence and commerce is whether companies can afford to be good. That is, with all the cost-cutting and down-sizing, should companies shelve initiatives relating to social responsibility until better times return? My short answer is, no. In fact, at this time of distrust and missteps, consumers will look even harder at the totality of the brand promise as they ponder the value of potential purchases. What they’ll consider as things continue to get tougher is that value cannot just be measured in price-value, but in corporate values, ethics-wise, humanity-wise, or green-wise. While some may think that getting through this economic tsunami alive requires belt-tightening and belt-tightening only, I believe just the opposite. It’s precisely during times of scandal, bogus bonuses and breaches of trust that organizations must demonstrate that offering a good product is only half the reason for consumers to buy in; the other is the character of the brand doing the offering. This is not the time to break down the wall between the business side and the brand side of the equation, but the time to shore it up. Pushing aside all endeavors that don’t directly keep the lights on will, in my opinion, simply turn consumers off.

While in the past it was okay if do-good activities were merely a reflection of the CEO’s favorite philanthropic cause, this is no longer the case. In today’s transparent world, with money squeezed so tight and consumer confidence so low, it’s critical that companies do everything possible to draw attention to what makes their brand’s promise meaningfully different from the competition’s. Aligning social initiatives with the brand promise is not just the responsible thing to do; it makes good business sense for bad times.

“A paradox, a paradox, how quaint the ways of paradox,” to paraphrase a Gilbert and Sullivan tune. Well, not quaint the ways of this paradox: Bottled water, that is. This booming business, this signal of healthy living is not healthy for the environment. Recent news reports tell us that all those plastic bottles are rapidly adding to the industrial emissions heating up our planet. Bottled water brands can stick their heads in the blazing sand and hope this green issue will go away, but it won’t. According to the recent Landor ImagePower® survey it’s picking up steam which could affect the bottled water business in a booming negative way. That’s why it’s not too hard to imagine that the first of these brands to develop a functional and stylish bottle that can be refilled or, at the very least, is manufactured to be environmentally harmless could be in a very advantageous category position. This proactive brand will endear itself to the growing number of consumers who carry their plastic bottles as a symbol of healthy living and even allow them to signal that their health-conscious attitude applies to the world, at large. As I think about it even more, it shouldn’t take too long for major cities to capitalize on this effort. The first city to officially brand its refreshing tap water and figure out an innovative way for its citizens to tote it around would find itself in a very advantageous position, as well. From a branding perspective, it’s no paradox that sometimes the best answers are right under your nose. Mayor Bloomberg, make some stylish NYC reusable water bottles, brand them “Bloomberg’s Best” and watch them help you turn NYC into the Greenest city in America!!

Landor has just released its 2007 ImagePower® Survey looking at green issues and green brands and, not surprisingly, it confirms what intuition would tell us. More and more Americans—40%, in fact—have gotten the message that global warming poses a major threat. More than 50% believe existing environmental initiatives aren’t enough to address the problem. Whether it’s the result of Al Gore’s Academy Award-winning documentary, An Inconvenient Truth, or the increasing volume of business and political discussion from Thomas Friedman on down, green is definitely on the national radar screen. As such, more and more companies are beginning to look at the problem as more than a matter of concern to just tree-hugging fanatics living on the fringe of society. While, again, not surprising, when asked to identify the “greenest” brands, those in the survey did specify a number of brands that have been in the eco-space for years, Whole Foods, Wild Oats, the Body Shop, Aveda, and Toyota among them. The environmental positioning of these brands has been clear to consumers for some time. What was surprising, however, was that those surveyed also identified GE as worthy of a spot on the survey’s list of top ten greenest brands. Surprising, but heartening. And, an indication that this growing concern is leading to a growing awareness far beyond the fringe.

GE is about as unfringe-y as a brand can get. Yet, here is GE setting the bar for any huge, industrial company looking for the right way to enter the green space. First of all, it has assigned a senior executive to oversee the responsibility. Lorraine Bolsinger leads ecomagination, GE’s company-wide commitment to addressing environmental challenges on a global level and she has taken on the substantiation of the sub-branded program incredibly well. Stories on the ecomagination Web site call attention to everything from GE’s answers to cleaner, more efficient sources of energy to its on-going efforts in reducing greenhouse gases. Research and Development investments in the area have grown exponentially. In addition, Jeff Immelt, CEO of GE, has gotten out in front of the program in a major way, a key proof point for any brand looking to walk the green walk, not just talk it. Despite that only a small percentage of GE’s products are environmentally related versus, say, the Body Shop’s where all are geared in that direction, GE has been able to plant itself firmly as a leader in the space early on. This is something that will serve them well as the issue continues to grow in scope and public concern. Needless to say there is no more fringe. GE’s efforts will serve all of us well.

Despite what the calendar says spring fashions have arrived. At least on paper they have. I was flipping through the recent special style section of Time Magazine when one ad in particular caught my eye. It was hot, in every sense of the word. In it, an attractive young couple sat on a New York City rooftop trying to catch a cool breeze. They gaze out at the peaks of skyscrapers emerging from what was obviously an encroaching ocean, the tip of the Empire State Building among them. The single line of copy read, “Global Warming Ready?” It was an ad for Diesel. It ran in sync with “An Inconvenient Truth” being up for an Academy Award. And it’s an ideal example of what makes the Diesel brand so successful in an industry where success is very hard to achieve.

In my book, BrandSimple, I recount a wonderful conversation I had with Toni Belloni, a former executive at Procter & Gamble who is currently CEO of LVMH, the well-known purveyor of fashion and luxury goods. During the conversation he told me that managing a fashion brand is akin to a surfer riding a wave. The surfer, he said, has to be responsive to several things at once – the height of the wave, the speed of the wave, the wind, and the currents running beneath. To keep his balance, the surfer needs to make lots of quick, almost intuitive adjustments to keep from going under. What’s more, Toni told me, one must think about the fashion consumer as sitting on the beach watching the surfer ride the wave in. Nothing can give away the fact that the surfer is reacting to all these subtle changes. It must be seen as an experience both flawless and easy. It’s a great analogy. And Diesel is a great example of a brand that brings the analogy to life through its branding. From the DJ in its stores, to its merchandising, its striking models to its assertive red label, Diesel makes riding the wave of fashion brands look simple. Responsive to the subtle, but constant changes in the industry, Diesel knows exactly how to balance its branding signals to continue appealing to its forward-thinking audience, even further evidenced by its environmentally-aware advertising.

Building a brand is tough. Building a fashion brand aimed at 20–something’s is tougher. Expectations for relevant differentiation are high. As trends change, as brands gain and lose favor, Diesel has been able to keep its balance without anyone realizing exactly how it’s doing it. To the consumers sitting on the beach – or on the rooftop – all they see is how hot a brand it is.

Now that the thermometer has returned to normal winter levels in many parts of the country and snow continues to bury poor Oswego, New York it might be hard to think about the recent devastating report on global warming. But, thankfully, people are thinking. And while most want to jump into action, they’re not exactly sure what they’re supposed to do. They know global warming is bad. They know it’s a reality. And, while most people know it has to do with greenhouse gases and fossil fuels, they’re not exactly sure how to help, much as they want to. My belief is that one way to help them help is by means of a simple branding signal. I’m not saying to brand global warming per se. The phrase, sadly, speaks for itself. But rather, I recommend creating an evocative, easily interpreted branding cue that simply and clearly communicates to people that by using a particular product or service they won’t be contributing to global warming. In fact, in some cases, they may actually be mitigating its effects. Like branding signals of any sort this one must convey the intent behind the promise without need for any explanation. It must speak for itself.

Much like the construction industry is using “EnergyStar” to signal energy efficiency in specific products and services, and PepsiCo, Inc. is using the green “SmartSpot” to signal healthier snack choices, a global warming branding signal (for lack of a better phrase) would act in a similar manner. It would visually alert people to the benefits of making one product choice over another. With so many brands and so much brand chatter, people need and use branding signals to help them make choices relevant to their needs. Global warming, while relevant to everyone, is a complicated issue. Give people a simple way to understand what does or doesn’t contribute to its effects and my guess is that they’ll pay close attention. In fact, given the choice of melting oceans, hurricanes, and the eventual destruction of our planet, my guess is that this is a little branding signal that would be greatly appreciated.

Go to www.join(red).com, click on Manifesto, and you’ll read that “(RED) is not a charity, it’s simply a business model.” I agree. It’s a terrific business model. (RED) is also a terrific example of what makes for a powerful brand. Why? First and foremost, the most powerful brands on the planet are based on ideas that are simple to understand. (RED) products save lives. What could be simpler than that?

Buy (RED) branded products and you’ll help eradicate AIDS in Africa. More than this, when you pull out your (RED) American Express Card, your (RED) iPod Nano, your (RED) Motorola cell phone, when you don (RED) Converse sneakers or an item of (RED) Gap or Armani Exhange clothing, you’ll be recognized as someone who supports this incredible initiative. People want to get credit for supporting good causes. (RED) allows them to do so in a practical and very meaningful way. Second, when a brand is based on a simple idea, it leads to brilliant branding ? the things that convey what a brand stands for. (RED) branding is brilliant. Start with the name. It’s a color. What could be simpler than that? The brilliance was in imbuing this color with emotion. Giving the word red, itself, a topspin. Colors have been associated with brands for eons, but not in the way it’s been achieved with (RED). Along those lines, wrapping (RED) in the warm “embrace” of the parentheses makes the name iconic, gives it personality beyond the name. Then, there’s the actual color, which serves to emotionally connect the idea to everything associated with the (RED) brand, from advertising to products.

The speed at which (RED) has taken off is proof of its inherent power as a brand and the brilliance of its branding. (RED) has created an instant community, one of the most difficult things to achieve in brand building. The fact that companies are “embracing” a brand not their own is also huge. The Gap has done a particularly good job aligning with (RED), most notably with the folks who model the (PRODUCT) Red Gap clothing in its beautifully produced advertising spreads. While most of the people and companies teaming with (RED) are inherently cool, or hot, this only adds to the desire to take part. Driving the AIDS message into the mainstream mindset through commerce is as brilliant as the branding. While pink and yellow have done a good job in branding causes, Bono and Bobby Shriver in creating (RED) have taken color as a branding tool to an even higher level. They’ve turned (RED) into a money making business model that benefits both the companies that sign on and, more importantly, those suffering the ravages of AIDS. They’ve done it by adhering brilliantly to the most basic laws of building a powerful brand. More power to them. Let’s save more lives.