Starsky Insight _ February 2002

Brand activation
By: Paul Morel, Peter Preisler and Anders Nystrm

Brand activation is not a theory; it is a natural step in the evolution of brands. This paper takes a deeper look into the possibilities within the brand, its strategy and position to find assets that can be relevant, adaptable and profitable for the entire company. Paul Morel, Peter Preisler and Anders Nystrm are brand strategists at the brand and design agency Starsky. The authors have gathered experience and knowledge about todays brand environment both inside and outside companies. Brand activation is an expression of how they approach brand management within an organization.

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From marketing brands to brand activation

The enlighted individual is the focal point in the postmodern society. As society moves into post modernism, new companies have evolved and older ones have reformed their businesses to meet the changing needs of people and companies. These companies have listened to their customers, and they have learned that, both as companies and as persons, we perceive ourselves as individuals with specific needs. The enlightened individual is the focal point in the postmodern society. As Robert Delamar states in his article Post-modernism, electronic consciousness and humanness: Humanity is the center of the postmodern period; indeed it is helpful to characterize this age as the selfcentered era. Today, people are no longer a massive work force, or manipulated consumers. Each individual brings competence and ideas valuable for every kind of commercial business. We look upon ourselves as persons with individual values and preferential needs. An increasing number of industries have specialized in meeting the increased complexity of the individual needs. Staffing service, with companies such as Manpower, have flourished meeting the demands in a rapidly changing global business environment where flexibility is key to a lot of companies. In the meantime, in the highly competitive business climate, developing and maintaining unique product features has become hard and costly. Technical progress does not necessarily assure commercial success or sustainable competitive advantages. Products are becoming more and more like commodities. According to Naomi Klein, author of the much debated book No Logo, leading companies like Nike, Microsoft and Tommy Hilfiger put brands before products claiming that they no longer produce things, but images of their brand. Companies also turn to services to differentiate themselves in the customer relation. Financial institutes such as banks have abandoned their diversified strategy with a wide range of products and services, where each individual service had its own selling point. Instead, they reform their relations to their customer by bundling different services and offering financial planning. This strategy is not based on a specific product portfolio; rather it reflects a deeper understanding of the customers as individuals. One of the basic ideas behind financial planning is to understand the individuals financial situation, behavior and needs in order to cater specific services and products. Its worth to mention here, that these new services are not just meant as a new source of income, but also serve as a key differentiating feature. The American airline Southwest Airlines distinguish themselves from other airlines by having singing flight attendants onboard. The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride and Company Spirit. Not surprisingly they call it service.

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The brand faces new challenges in giving meaning to a companys whole relationship with the customer.

Companies desire a stronger relationship with their customers, making it harder to exchange the products for other offers, both on a functional and on an emotional level. In this highly competitive and individual world companies are increasingly depending on the brand as a competitive weapon. The brand has become the carrier of the emotional value proposition towards the customers and a symbol of the specific competence that builds up a companys competitive advantage. Thus the brand faces new challenges in giving meaning to a companys whole relationship with the customer. Traditionally, branding has been a marketing communication tool, a visual and verbal weapon owned by marketers and marketing consultants. In order to earn trust and loyalty from the postmodern customer, it is time for the rest of the company to take benefit of the assets embodied in the brand.

Demystify the brand

By demystifying the brand companies can make the brand common knowldege among their employees. Since branding in most cases is driven from a communication perspective, branding and competence about branding is still owned and guarded by marketing directors and advertising agencies. Today a person meets in general 30 000 messages per day, of which 3000 are branded in some way. Brand strategies have evolved into complex theories predominantly driven by the communication environment. According to David C.Court, Mark G. Leiter and Mark A. Loch, brands do work for the customers. In their paper Brand leverage they explain why: they simplify everyday choices (a shopper who regularly buys Crest doesnt have to agonize continually over toothpaste), reduce the risk of complicated buying decisions (IBM mainframes and Boeing jets are safe choices), provide emotional benefits (Tiffany), and offer a sense of community (Apple Computer and Saturn). Besides the reasons mentioned by Court et al, we believe that there are two other reasons why brands work, especially for the service industry. First of all they work if they create relationship benefits (the experience of being known by your banker or a car salesman). Second, brand works if they create accessibility (when services are accessible for me 24/7). Marketers have been eager and successful in developing and exploring the brand as an asset for communication during the 80s and 90s. Other organizational competencies have much to learn from marketers when it comes to adapting and exploring the brand for their specific purposes.

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As consumers are getting more selective towards brands and products, seeing themselves as individuals with strong values and preferences, companies that dont live up to communication promises will rapidly disappear from the consumers mind. This means that companies cannot afford not to meet expectations set by the marketing communication. Therefore, companies would be wice to take control of their brand management, and apply it to areas beside the pure marketing function, instead of putting it in the hands of marketing consultants. We mean that the brand can be activated in all customer relations, such as the helpdesk, in the telephone, in the product or in the design, etc. To be able to do that, its time to demystify the brand. Its time to make the brand a common knowledge among all employees; so that it can be a source for innovation and new ideas among all competencies within the companys organization.

What is brand activation

Brand activation is not a theory; its a natural step in the evolution of brands. We belive when all the necessary brand strategies are implemented, companies just need to execute them across the organization and in the total offer towards the customer. Brand activation is looking deeper into the possibilities within the brand, its strategy and position to find assets that have relevant consequences for the whole company. A brand can be activated in a range of situations, best summarized in four cornerstones; Products and services, Employees, Identity and Communication. An active brand offers products and services that deliver on the brand position. It meets the customer in a personal manner closely related to the position. It also has the same appearance independent of interface. In other words, the customer will perceive the brand as one coherent company whether he or she meets it in digital or analog media, through a product, face to face or on the telephone. But brand activation is also communicating the position through advertising.

What to activate
When activating a brand, look for the core features that constitute the brand. It might be the communicated position or promised customer benefit, or the company vision or people policy strategies and tactics that often are relevant for the whole company. Therefore, effective brand activation starts with a defined brand. Brand position is a common definition in these circumstances. Al Ries and Jack Trout first defined the term in their book Positioning. Ries and Trout describe the marketing opportunities of conquering a specific position in the mind of the target audience. This position must have strategic advantages towards competitors to be profitable.

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One example that supports their reasoning is Avis, the car rental company. Avis admitted that Hertz was the first car rental brand in the world. Acknowledging this Avis explored the opportunities and competitive advantages of being second. The result was: Avis, we try harder. By positioning the brand as the second brand in the car rental market, Avis gave meaning to why they had to work harder than its worst competitor to please their customers. Another example is Apple. Apple was first among the computer manufacturers to conquer an obvious position: the position as the different computer company. Think different, gave meaning to the bite in the apple; to the different operative system and, later on, the different approach to product design. Another theory is developed by David A. Aaker published in his book Building Strong Brands. Aakers Brand Identity System describes the brand position like this: Brand position is the part of the brand identity and value proposition that is to be actively communicated to the target audience and that demonstrates an advantage over competing brands. Aaker describes the identity system itself as the core identity and the extended core built by products, organization, personality and symbols. In this paper we will simply use the term Brand since constituents may vary depending on which branding theory and strategy used.

Where to start
Search for solutions where the brand can support, guide and innovate the company. We see the brand position in Aakers model as a tactical asset when communicating especially the core identity. Thus the brand position can change focus without interfering with the core identity. While Aaker identifies competitive communication strategies from a perfectly working identity system, we search for ways to look deeper into the parts that build up the system. We also look for ways to let the brand make a positive impact on these areas. Though there are obvious similarities between Aakers Brand Identity System and the four cornerstones; Products and Services, Employees, Identity and Communication there are differences. The four described cornerstones are not defined from a communications perspective, i.e. we do not try to find values in these areas worth communicating because they strengthen the identified core identity. Instead, we search for solutions where the brand can support, guide and innovate the company in these four areas. The point is to help companies become a coherent brand whatever situation or customer relation.

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Picture 1. Brand Activation Model

How can the brand be relevant, adaptable and profitible?

When exploring the brand for activation, search for answers to how the brand can be relevant, adaptable and profitable for the four areas, respectively. There is also an opportunity to add a fourth question; how is this measurable? Though there are numerous well-developed theories and methods for measuring the brand, we choose not to explore this question further in this paper. But we do want to stress that measurement tools and methods are important indicators of the effects of brand activation efforts. The questions mentioned if the brand can be relevant, adaptable and profitable - are not intended to question the validity of a brand. Instead, they shall explore the opportunities within the brand that can have relevant and meaningful consequences for the four areas. In other words: there must exist a strategic brand work as platform for brand activation efforts. To further explain what we mean by brand activation, we adapt the three questions to two of the cornerstones: Employees and Products and services. We will use showcases to make it more understandable.

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Employees
Since employees are one of the most important carriers of a brand, you might ask yourself; how do companies give employees inspiration, education and tools to perform on the expectations created by marketing promises? How is the position relevant? McDonald's vision is to be the world's best quick service restaurant experience. The mission is to get the customer satisfied as fast as possible and to leave just as fast with a happy face. On the corporate homepage, McDonalds states: This means providing outstanding quality, service, cleanliness and value, so that we make every customer in every restaurant smile. The question to ask here is: how can the company mission be relevant to low paid staff in the fast food industry? And what makes people smile in a fast food restaurant? How is the position adaptable? The Scandinavian airline, SAS, has chosen to let the companys Scandinavian heritage form the foundation for its brand. The company describes the typical Scandinavian character as informal and unpretentious, straightforward and honest, modest and with a lighthearted glint in the eye. The challenge is to define how the brand position Its Scandinavian can help flight attendants understand how to meet their passengers. What inspirational guidelines can every employee agree upon, when breaking down the brand into behavior and attitude? In some companies, the brand may not be stated or articulated in a way that easily translates into personal behavior, attitude or mission etc. For example, how is the mission adaptable to employees at the petrol company Statoil? At the corporate homepage, Statoil states: The mission is to make our customers every day life easier through personal service, care and quality, and through attractive locations and opening hours make it possible for the customer to shop more from one same place. Considering this, as an employee at a Statoil service location you had better be prepared to serve the customer with a lot more than filling cars with petrol. What can you as an employee at a petrol station do to make peoples life easier? How is the position profitable? How can the brand be profitable for the employees, given the fact that its profitable for the company? Does it increase their salary or in other ways add to their personal well being, i.e. by making the workplace a meaningful or joyful part of life?

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The American luxury department store Nordstrom declares that no customer should leave the department store without being satisfied and happy. Nordstrom also has identified the people closest to the customer as the most important employees since they have best opportunities to effectively satisfy the customer. Therefore there is only one company rule; Rule # 1. Use your good judgment in all situations. There will be no additional rules. At Nordstrom, no employee has to seek their boss to make decisions regarding customers. In the realization of the declaration, employees are offered a lucrative commission and bonus deal making it possible to earn more than you would in the assembly room. Leslie Kaufman a stars salesman at Nordstrom says; If I was paid by the hour I wouldnt be as motivated as I am. Since I know about the commission I get a completely different driving force at work. The more I sell the better for me and for Nordstrom. Southwest Airlines promise that they will entertain everybody during the flight, because they love what they are doing. So, the flight attendant at Southwest Airlines grabs the microphone to give the obligatory safety precautions but today she is rapping; Federal regulations says you must comply/If you dont you can kiss seatmate goodbye/Chhhh-ch-ch-ch-chCh-ch-ch-ch. Now, what makes her rap? Kathy Pettit, Director of Customer says; Make the working place the most fun place to be at, and explains, Skip uniforms and formalities. Have lots of competitions, celebrate as often as possible and encourage practical jokes and pranks. Let prices rain over the employees but never give money let it be t-shirts or things as access to the best parking spot for a week. Pettit continues; You will be surprised of how much people (employees and customers) are willing to give when they feel loved and acknowledged.

Products and services

Emotional preferences differ products with similar functional attributes. How do we activate the brand through products and services? And how do we make sure that products and services live up to advertising promises? By aligning these questions, emotional preferences can be attached differing products with similar functional attributes. McKinsey Quarterly, 2002 nr 1 captures this in their article about Revving up auto branding. GM and Toyota build two more or less identical cars (the Toyota Corolla and the Chevrolet Prizm), both models designed by Toyota in their joint venture plant in California. The models have similar functional benefits and both models score high in consumer reports. Yet, selling the Chevrolet Prizm requires $750 more in buyer incentives, only one-quarter as many Prizm are sold, and their trade-in value depreciates much more quickly.

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How is the position relevant? An Apple computer doesnt offer a unique functional benefit that cannot be offered by other computer companies. Still, Think Different casts new light on the purpose and perceived benefit of Apple computers and computer accessories. The companys mission is to deliver high quality computing products with a different experience. Apple is a great example on how the brand can alter the way consumers look at benefits on commodity products. How is the position adaptable? How do you make products state the brand? In the insurance industry, its sometimes hard to tell one brand from the other just by reading the product and service offer with one exception. The insurance company Progressive decided to restructure their auto insurance offer to deliver on the promise of customer service. Instead of having in-house representatives, Progressive took their brand promise to the extreme and put claims representatives in Immediate Response Vehicles that could come right to the scene of an accident. In doing so, Progressive clearly demonstrates how the brand can cast new light on the total customer offer. How is the position profitable? Increased profits are one of the major drivers of change and development. Perceiving profit as growth in sales figures or in number of items, exploring the brand unravels new opportunities for sustainable growth. To leverage this driving force, the company might have to adopt a more holistic perspective than previously. Progressive has since 1990 grown to be the fourth largest insurance company in the United States. To achieve this, the company went through an extensive reformation, restructuring their total product offer on a longterm basis. The Progressive case shows that brand activation efforts can ignite a total reconstruction of the product offer or reveal new opportunities for specific products. Naturally, brand activation may also result in less revolutionary measures, like sale support or development of new products. During the process, opportunities to expand your category, or to move into closely related ones, can appear. Gillette expanded the razor category to include shaving gel and other skin lotion products. Disney is focused to entertain all living ages, but their offer is diversified into a variety of product categories.

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Finally, why do we need active brands?

In todays postmodern society, merely offering supreme product features on a functional or emotional level is not sufficient. While the basic idea about active brands is to execute the brand in other terms than marketing, the real value lies in the opportunities it creates. Most fundamentally, brand activation contributes in creating trust between the customer, the society and the brand (i.e. company). And trust is one of the key factors to create loyalty between consumers and brands. In return, companies can use the loyalty to create re-purchase behavior or customer recommendation behaviors. Companies can also, according to Court, Leiter and Loch, use customer loyalty to diversify or focus their business. We do not look deeper into these strategies in this paper, but it is worth mentioning that when a company relies on customer loyalty to expand; the key challenge is always to retain the existing relation of trust between the customer and the brand.

Summary
Branding is much more than advertising. The time has come for companies to leverage the brand asset within the entire organization. The postmodern individual demands that brands live up to their promises in every interaction whether it is through products and services, employees, identity or communication. A coherent brand in these four areas will gain trust and loyalty with its customer enabling profitable relationships between brands and people.

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Sources
Post-modernism, electronic consciousness and humanness Robert Delamar Spark-online issue 6.0 Brand leverage David C.Court, Mark G. Leiter and Mark A. Loch McKinsey Quarterly 1999 number 2 Building Strong Brands David A Aaker The Free Press ISBN 0-02-900151-X Positioning, the battle for your mind Al Ries, Jack Trout McGraw-Hill Professional Publishing; ISBN: 0071373586 No Logo Naomi Klein Picador USA; ISBN: 0312271921

Starsky
Starsky is a brand and design agency. Our focus is to strengthening the relationship between people and brands. Starsky works with clients like SAS, SEB, SEB Enskilda Banken, Travellink and BMG. Starsky Sibyllegatan 53 114 43 Stockholm, Sweden Tel. +46 (0)8 660 00 52 Fax. +46 (0)8 660 40 53 www.starsky.com Paul Morel paul@starsky.com Peter Preisler peter@starsky.com Anders Nystrm anders@starsky.com