One of the best ways of maintaining and building your brand is market intelligence and in their annual release of their Top 10 Branding Trends, global branding consultancy, Interbrand, represented in South Africa by Jeremy Sampson of Interbrand Sampson, provide cutting edge market knowledge. These are their predictions:
1. Updating and being relevant, now and in the future - Brands that don't move with the times become irrelevant and passé. Sometimes the change can be a subtle makeover, a form of evolution (not e-volution), and at other times more radical. A brand that fails to provide a constant relevance to the youth market, and falls behind the times will eventually disappear.
2. Co-branding is accelerating - Brand owners are realising that one way of gaining access to new markets, reduce costs, minimise risk, perhaps charge a premium, is to team up with a non-competitor. Co-branding comes in many forms, but it is always crucial to ensure the fit between the brands is good, and that all legal aspects have been well thought through and regulated by contract. Brands can be corporate, product, services and even people.
3. Valuing, measuring and general accountability - At Interbrand we have been valuing brands since 1989 and were the pioneers of the discipline. Following the well known
saying: 'If you can't measure it, you can't treasure it', the very process of valuing a brand creates an invaluable tool for everyone to become more aware and more accountable. In
South Africa, brands valued include Absa (twice), SAB, Vodacom, FNB etc.
4. Increasing importance of corporate reputation, of corporate brands - It is accepted that brands are totally holistic - every facet of their persona can impact on all the others - wherever in the world they operate. Aligning the brand experience is a major issue. Globalisation is a mantra to some, whilst others remain wary. Reputation, integrity and ethics have never been more important.
5. Brand architecture becoming crucial - Defining the relationships between all levels of branding within an organisation - corporate or masterbrand, sub brands, products, services and co-branded or joint venture business relationships - creates a structure, adds clarity and value.
6. More international brands entering South Africa - Around the world there are many examples of local brands that remain strong despite the onslaught of bigger regional or global brands. For many years South Africa remained a relatively 'closed' economy but all that has changed. Some major brand owners only have a couple of their brands available locally, yet they often have lots more waiting in the wings. In other cases they may buy up local brands and relabel them! i.e Valvita, now Nestle's Pure Life water brand.
7. Impact of legal issues set to grow - A key aspect of a brand is that it is a piece of legal property that can be looked at in isolation, and is owned. No longer is it sufficient to register a trademark in isolation. Today it is crucial to also register the website and potentially colours, smells and even create a sonic trademark. And trademark 'terrorism' is definitely on the increase.
8. The power of the consumer, of the individual - It has been said that the reason brands are so powerful is because we, the consumers, have made them so. Unlike an election when we have to wait a number of years, and the options may be limited, with brands we can vote everyday. With the web, the individual has been connected and empowered to have significant power to influence other people's options.
9. Branding and marketing being represented on company excos - The subject of brands and marketing is being discussed much more at exco level. As companies realise the importance of reputation, the power of a corporate brand, the need to embrace a value set and create a point of difference, so comes the need for someone to understand and represent this key area at the highest level. The realisation that brands often are the major assets of companies, and that Net Asset Value only accounts for some 36% of the market capitalisation of major companies globally, fuels the debate.
10. Understanding the impact of the internet (a work in progress) - There is no argument that for many people and companies the internet is changing their lives and the way they have done business. It doesn't add a new channel. The phrases 'new economy' and 'old economy' have lost their relevance as we carry on with the e-volution.
Leading branding company, Harwood Kirsten Leigh McCoy (HKLM) has identified five key trends that it believes are shaping the future of brand-building:
1. Internal Branding - Becoming brand-centric on an operational level and getting employees to actively participate in an organisation's brand strategy is the most significant trend in the global brand arena. An organisation that doesn't put internal brand alignment at the top of its agenda is the exception. Globally, there is growing awareness that a brand is a code of conduct. Every brand encounter counts, and success hinges on the level of employee 'ownership' and practise of the brand values. Getting the internal resources to understand, adopt and 'live' the brand is becoming paramount. But aligning employees to a brand strategy isn't a simple linear process. Yes, it's about manuals and guidelines, videos and industrial theatre, presentations and emails - but it's more than that. It's about bringing the brand alive among the internal audience - and creating a brand-centric operational environment. There is also an increasing demand for appropriate tools and structures that measure employee buy-in and manifestation of the brand values.
2. Ethical Brands - True brands transcend product format. Their relationships with consumers have more to do with the beliefs that the brand expresses than the product or service itself. Those brands that demonstrate a genuine social conscience, that are ethically robust and environmentally pure, will differentiate themselves. Meaningful Corporate Social Investment (CSI), not mere lip service, is becoming an increasingly important driver of consumer loyalty.
3. Simplicity is key - In an increasingly complex, busy and unpredictable world, simplicity is the key to attracting attention. The move is towards brands that are clearly defined, easy to identify and straightforward. And with consumers becoming harder to reach, busier and more distracted than ever, good design is becoming an increasingly vital aspect of the brand platform.
4. Communication beyond advertising - Advertising agencies are losing their traditional position as brand custodians. Responsibility for managing brands is increasingly being placed in the hands of more strategic communications companies, such as branding, reputation management and PR companies. Marketing spend on above-the-line activities is declining, with increasing investment being made in more tactical, strategic interventions.
5. The feminine factor - In today's technocratic world, there is an increasing move by brand strategists to develop brand personalities that add a dimension of warmth, familiarity, trust and caring. Future brands are sensitive, empowered and understanding - and that aren't afraid to display and demonstrate their feminine side.
