Brand Relevance In A Changing World
Back in the good old days, brand building could be achieved using 4 simple techniques: building affinity; building salience; being persuasive; and being available in the right place at the right price. This is a simplified, rose-tinted view of the past, but … fast forward to 2022 and a lot has changed.
Life used to be predictable. Now we all have to be adaptable. There is no ‘new normal’ and the future is in a constantly evolving state.
IKEA LIFE AT HOME REPORT 2021
Brands no longer just compete within their own competitive set, they play an active role within our worlds, and are impacted by external forces. As such, brands need to adopt an ecosystem approach to brand building, which requires them to work harder than ever to remain relevant.
Brands are competing within an evolving ecosystem
Viewing the world as an evolving ecosystem highlights the factors driving consumer choice and business pressure. Today’s influences include (to name a few…):
Financial consumer and business uncertainty and how this impacts consumer spending-power and business income
A technology and information explosion that provides new business solutions and democratises information (and expectations) for consumers
Scrutiny from the financial sector on ESG and material business concerns and how this trickles down to brands
The impact of the ongoing pandemic on people’s lives and business models
Demographic shifts
Climate change and social inequalities forcing a reappraisal of the choices that consumers make;
New legislation impacting how a business labels, packages, formulates or advertises its products and services, and how it is taxed;
A war in Europe that’s threatening energy, supply and prices; and
A collection of consumer needs from control to escapism
It’s the translation of how the ecosystem impacts brands that drives relevance.
For example:
Consumers may be financially impacted and need to feel in control: companies could decide to focus on volume sales when the financial outlook predicts lower margins. Companies like Tesco have recognised this with their exclusive Clubcard prices, which drives consumer loyalty to Tesco and rewards loyal customers with lower prices. Likewise, Iceland have targeted older consumers, offering them discounts
Consumers may want to foster a sense of well-being and calm at home, to create a sense of refuge: businesses see premiumisation as a route to growth. Air Wick Essential Mist has achieved this with a stylish mist diffuser that creates a relaxing and calming experience
Consumers may want the brands they choose to do better for people and planet but not expend too much time or effort: businesses are under pressure to reduce waste. Maxwell House addresses this by providing compostable coffee pods in Canada
Some parents may want a better baby brand, tailored to their baby’s needs but that also has a social purpose that helps those parents not as fortunate as themselves: businesses may want to use their power as a force for good. Abby and Finn diapers and baby products do this in the USA by giving to families in need while creating more sustainable solutions
Consumers may want hyper-tailored on-trend solutions that they can experiment with: R&D may have a technology that can deliver the perfect tailored blend every time. YSL Rouge Sur Mesure by Perso is a smart device, that enables consumers to blend their own Velvet Cream Matte Finish lipsticks
Futureful helps brands to stay relevant in a changing world.
Futureful is a new consultancy, founded with 25 years’ of experience working with some of the world’s most loved brands.
We believe that understanding the forces at play within the evolving ecosystem and how they impact business, consumers and brands is the key to unlocking relevance.
Our Ecosystem Model views the world through 4 lenses to determine brand relevance:
The societal and consumer context
Influences within the business commercial context
Environmental considerations
Unlocking business technologies.
We work collaboratively with clients across business functions to unlock opportunities for your brands.
We can deep dive into hot topics; workshop universal growth strategies; or run bespoke engagements for you.
To find out more, you can get in touch by clicking here