Brand ValuedHow socially valued brands hold the key to a sustainable future and business success
New techniques to refresh and recharge your brands How do you establish and maintain a strong long-term relationship between your brand and your consumers? Successful brand managers know that it is all about trust and keeping the consumers engaged. The success of recent "green" campaigns as a means of connecting with, satisfying, and attracting new consumers is just the tip of the iceberg. As the international playing field continues to be leveled, in order to sustain and expand their success, brand owners must interact with their customers more than ever before, forging new and stronger links, and increasing their stock of social capital. At last, there is a book that addresses the growing significance of social capital in the business world. Brand Valued explores how as the strength, depth, and quality of interactions between a brand and its customers improve, increased opportunities to demonstrate trustworthiness arise. This in turn creates a self-fulfilling cycle, wherein trust begets social capital, which begets more trust—and even shared thinking—not to mention better sales. Brand Valued will receive the full support of Havas, the fifth largest global communication and marketing services group in the world. In easy to understand terms, and using concrete examples, Brand Valued provides: The tools necessary to stimulate dialogue—and new ways of thinking—between a brand and its intended audience Methods for extending brand messaging to wider audiences Ideas on how to make brands the engines of social capital, getting rid of unsustainable practices to foster more sustainable patterns of consumer behaviour Suggestions for the development of a new brand strategy that reduces costs through innovative and lasting solutions to problems Unpublished data on the role of consumer trust in new products based on research carried out by the Havas Group across over 150 brands in nine different markets A wiki component to the book in an accompanying website. Designed to forge stronger channels of dialogue and communication with customers and consumers, the book is a must-read for anyone committed to keeping their brand relevant in the twenty-first century.
Acknowledgements xi List of Figures xii Introduction xvi PART I Setting the Scene – The Tangled Worlds of Brands and Social Capital 1 CHAPTER 1 Congratulations – It’s a beautiful baby brand . . . 3 Efficient and rational – adjectives of an era 9 From utilitarian to hedonic – when needs explode 11 CHAPTER 2 Innocent bystanders or calculating protagonists? 18 Consume! Consume! Consume! 20 Which came first – brands or demand? 26 CHAPTER 3 The public gets what the public wants 32 Whatever you do, don’t panic . . . 33 The good guys and the bad guys 38 Devotees, Hostages and Critics 39 Concluding remarks 44 PART II The ‘Unsustainability’ of Sustainability and our Need to Understand the Era of Social Capital Rising 47 CHAPTER 4 Charge! 49 Once upon a time, everything happened 53 The wisdom of crowds 56 Symptoms and causes 66 CHAPTER 5 Water, water everywhere – How brands help us choose 70 Maximisers and satisficers 71 We can’t have it all 74 Frames 78 Opportunity costs and trade-offs 80 Why encouraging satisficing would be so much better – for everyone 82 CHAPTER 6 It’s been emotional 87 Wanting versus liking 92 Where have we ended up? 94 Concluding remarks 98 PART III The Elixir of Life – Literally. Why We Depend on Social Capital 103 CHAPTER 7 The ‘what’ of social capital 107 Social capital defined 109 Forms of social capital 112 Strands of social capital 119 CHAPTER 8 Trust – Small word, big impact 124 What, then, is trust? 127 Brands and trust 134 CHAPTER 9 The ‘why’ of social capital 141 Social capital, brands and society 142 Internal and external audiences 145 Education 147 Neighbourhoods 148 Democracy 149 Health and wellbeing 150 Harmony and social capital 154 Concluding remarks 158 PART IV Towards Social Equity Brands, and How a Social Capital Strategy Gets Us There 161 CHAPTER 10 Stand up Social Equity Brands 167 Social Equity Trait #1: Compelling narratives 169 Social Equity Trait #2: The power of emotion 175 Social Equity Trait #3: From consumer to citizen (who consumes) 178 Social Equity Trait #4: Value-in-use 180 Social Equity Trait #5: Dialogue 183 Social Equity Trait #6: Shared understanding 186 Social Equity Trait #7: Balanced social capital 187 Social Equity Trait #8: From ‘accessibility’ to ‘assessability’ 189 Social Equity Trait #9: Intrinsic trumps extrinsic 190 Social Equity Trait #10: It’s the experience that counts 192 CHAPTER 11 From the 4Ps to the 5Is – Social Capital Strategy 195 Interconnectedness 201 Inclusiveness 205 Ignition 209 Interest 212 Imagination 215 Inside and out 218 CHAPTER 12 Apples today, with oranges tomorrow – Measuring social capital 222 Measuring the structural component – Dialogue 225 Measuring the cognitive component – Shared thinking 227 Measuring the relational component – Trust 228 The Sustainable Futures Quotient – SFQ 229 Bringing talk, thought and trust together 232 Social capital and brand locus 236 Concluding remarks 243 PART V Broadcast Off, Dialogue On – Invitation to Form Bonding, Bridging and Linking Capital (Apply Online) 253 Ten brands heading towards becoming Social Equity Brands – a primer for conversation 256 Danone 257 Unilever 258 Pepsi 260 Walmart 261 Equity Bank 262 Vodafone 263 Toyota 264 GE 265 IBM 266 Starbucks 268 End Notes 271 Index 282
Fernando Rodés Vilà is the Vice-Chairman of Havas, Co-Founder of the ARA newspaper, Catalonia, Chairman of the Sustainability Committee of Acciona and a member of the Board of Trustees of Fundació Natura. Previously, Fernando was CEO of Havas. Guy Champniss is brand strategy and communications consultant, focusing on strategy in the context of sustainability, pro-social behaviour and brand community. Guy holds an MBA from IE (Madrid) and is carrying out doctoral research at Cranfield School of Management (UK).
Part historical review of the birth, role and near-death of brands; and part prescriptive guide for the potential re-birth of brands in the 21st century, Brand Valued creates a unique perspective from which to see how our branded world got to how it is today, and how it could get us to something eminently glorious tomorrow. Drawing on proprietary data on more than 100 brands gathered from talking with more than 25,000 consumers worldwide, Brand Valued reflects on consumer behaviour trends, presents the next generation of brand management strategy frameworks and offers a glimpse into how brands have in front of them a once-in -a -lifetime opportunity to become engines of social and corporate value. To become brands that rather than hedge against the long-term health of society, actually invest with society. To become Social Equity Brands. In this emerging Era of Social Capital Rising, whatever business you're in, to build a brand that delivers long-term value to your business, requires you to build a brand that is enduringly valued by all. Measuring brand value is not enough - instead you have to ask, ‘Is ours a brand that is valued?' "I would recommend any brand owner to take note of the Brand Valued concept and make the thinking an integral part of their strategy." Peter Paul van de Wijs. Managing Director, Business Role Focus Area, World Business Council for Sustainable Development. "Brand valued? The answer to this singularly profound question will determine not only the future of brands and the brands of the future, but it will also define the social capital - the lifeblood of brands - in which they trade. Brand Valued engagingly arms us with the arguments and tools to answer this question." Ron Vandenberg. Co-Founder, FutureBrand & Merchant "The economy of the future will be one in which the successful, valued, brands, products and services focus on maximising outputs of wellbeing per unit of planet input. In Brand Valued Guy and Fernando give us a valuable insight into this new world." Jules Peck. Author www.citizenrenaissance.com, nef Trustee and creator of the ‘Flourish' wellbeing innovation process.
Can brands really be an enduring force for good, creating compelling reasons for us all to change our behaviour to become more sustainable? And can brands really rediscover their pivotal role for business success, in this age of hyper-connected consumers? In Brand Valued, we argue the answer to both of these questions is an emphatic yes, and that these two seemingly intractable issues are in fact facets of the same underlying issue. That issue is a collapse in our collective social capital: the richness of dialogue, the diversity of thought and the durability of trust that swirls around us, in our families, communities and even across continents. This gradual but undeniable collapse represents a period we call the Era of Social Capital Waning. But it's coming to an end. Rapidly. In this emerging Era of Social Capital Rising, we believe that when everyone talks about more sustainable lifestyles, we should start by focusing on lives enriched by higher and more balanced social capital. But are brands ready for this new era? Are brands ready to lead us, and their corporate guardians, to a far better tomorrow? "Finally a practical and actionable guide on how to make sense of sustainability for brands. Brand Valued defines a new currency for brands that is urgently needed in today's socially networked world." Matthias Kurwig. Co-Founder and CEO, Green Decisions. Formerly COO Worldwide, Neo@Ogilvy "Brand Valued is an inspired and timely gift to business leaders concerned with building enduring trust in their companies. Guy Champniss and Fernando Rodés Vila powerfully demonstrate how social capital presents a remarkable opportunity to build corporate brand value in ways that accelerate the transition to sustainability." Chris Coulter, SVP, GlobeScan.
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