B2C Branding: December 2007 Archives
Gone are the days when environmental promotions consisted of a serious message paired with a side of guilt. No longer merely endorsed by the granola-crunchers of the world, the idea of “going green” is today downright cool.
Pro-environment agencies, for instance, have revamped their advertising campaigns to fit with a more laid back image. 1% for the Planet’s new ads capture the public’s attention with large-font all-caps statements which go against everything such a company would defend. “If the dolphins are so smart, they would start a small business and save themselves?”, reads one of their many ironic advertisements. By flipping around the typical “this is why you should care” statement, the campaign sends a perhaps even stronger message of “this is how ignorant it is not to care.” All this without losing its light-hearted touch.
Another company which makes it fun to be green is Ben & Jerry’s, built from the get-go on principles of environmental sustainability. The company that brought you ice cream flavors like “Phish Food” and “Chunky Munky”, brings the same attitude to “Lick Global Warming”. This new campaign involves a partnership with Dave Matthews Band and SaveOurEnvironment.org, and integrates the logo on their packaging with a website including games, facts & figures, and most importantly – information on what you can do to help the environment.
Green also plays its part in the beauty product market – as many would pay a premium for the knowledge that they are treating their planet and their skin as they apply body lotion made only of the purest ingredients. The Body Shop, a chic English beauty firm, prioritizes social responsibility and feeds off its powerful brand, characterized as high quality and eco-friendly, to give to the many environmental organizations it supports.
Laid back and fun, but also swanky? “Green” now seems to represent a multi-faceted image, a range of attributes applicable to differing concepts of "cool". And considering the large-scale human initiative necessary to make a significant positive impact on our planet, having the Green Concept relate to a variety of aspirations for a variety of people is a powerful idea.
In a world increasingly filled with advertising clutter, marketers are trying to find new ways to cut through the noise and send their message straight to the consumer. Although the phenomenon of celebrity endorsements is not new, there has been a resurgence of this trend in recent times.
Brands are using celebrities as sources of product differentiation through co-branding, a step beyond endorsement. For example, beginning last June, bargain clothes retailer Steve and Barry’s signed an exclusive agreement Sarah Jessica Parker to sell a line called “Bitten” in its stores. Parker, a celebrity famous for her Sex and the City character’s impeccable (and often expensive) style, will promote the brand of clothing consisting of 500 items ranging between $7.98 and $19.98. Along the same lines, Kate Moss designed a line for English retailer Topshop that became a hit with fashionable yet price conscious consumers. In fact, the line was so popular that it restricted shoppers to buying 5 items each. The success of the line continued in the United States when it was sold at discount retailer H&M, later expanding to upscale Barney’s New York.
While celebrity endorsements are a popular way for brands to gain publicity, there is a difference between celebrity endorsements and celebrity branded items. While endorsements claim “I like it” branded approaches say “I made it.” Both approaches are evident in many cosmetic campaigns. For example, Tyra Banks endorses certain Cover Girl products, claiming to use the products with great satisfaction. On the other hand, Queen Latifah has represented Cover Girl in the branded approach where she promotes the Queen Collection as a product line in which she had great influence and involvement in creating.
This trend of celebrity endorsement extends beyond clothing lines. Celebrities are endorsing products that range from cars to liquor. Harbrew Imports has begun a campaign that uses different celebrities to endorse different drinks; it has even signed Danny DeVito on to promote the launch of Lemoncello.
Such a strategy of product differentiation and branding has both upsides and downsides. On one hand, celebrities may add a credibility and likeability to a product. This may induce fans and new consumers to sample and eventually adopt the product. This trend may be an effective way to cut through the clutter that has come to characterize a market inundated with new products and increasingly skeptical consumers. For example, Proactiv, a brand of skin products, has used a series of celebrity endorsements such as Jennifer Love Hewitt and Jessica Simpson to promote the product. Although the ads are infomercials, the celebrity testimonies add credibility to the ads that have resulted in good publicity and increased brand awareness.
However, such source attractiveness may backfire. Using a celebrity endorser is both an art and a science; in order to be effective, an advertiser must use a celebrity that will enhance the marketer’s message without overshadowing it. In addition, an overexposed celebrity will not have the same effect on consumers as a celebrity that only endorses brands and products selectively. While such dangers may be guarded against by exclusivity contracts, marketers must weigh a celebrity’s past and present endorsement deals in evaluating a good spokesperson for their brand. Also, a celebrity endorser may become a liability to the brand because actions taken in their personal lives may affect their public image, and in turn, brand identity. For example, Nike and Reebok quickly cancelled their endorsement deals with Michael Vick, an Atlanta Falcon’s football player who pleaded guilty to federal dog fighting charges. In an attempt to disassociate their brands with a liability, Nike and Reebok sought decisive action in hopes of minimizing negative impacts of Vick’s personal life upon their brands. Pepsi is another example; in various attempts to match the brand equity of Coca-Cola, Pepsi Co. has used celebrity endorsers such as the Spice Girls, Michael Jackson, and Britney Spears to draw attention to their product and brand it as a trendy choice of soda. However, the volatile careers and personal lives of such celebrities have called both positive and negative attention to the brand. Even though Pepsi Co. has spent large sums in advertising expenditures, it still has a long way to go before it can match the timeless marketing campaigns of Coca-Cola, including Santa Clause and the Polar Bear.
Also, there is an argument that the pairing of a popular celebrity with a favorably perceived product ultimately detracts from the product’s brand image. If the product already has a solid brand image, an endorsement by a celebrity may have a negative impact because it does not allow the product to stand on its own.
Have retailers and advertisers found an effective way to publicize their products? The jury is still out. While celebrities may induce immediate sales and short-term growth, questions remain about the possible long-term impacts of celebrity endorsements. The personal lives and public images of celebrities may not be worth the short-term effects; their association with the brand may endure longer than the temporary boost in sales.
Sources:
Belch, George E., and Michael A. Belch. Advertising and Promotion. 7th Ed. New York: McGraw-Hill Irwin, 2007.
Janoff, Barry. "Sarah Jessica Parker to Star for Steve & Barry's." BrandWeek. 1 Oct. 2007 .
Logically, strategy must precede metrics.
However, in many companies, metrics develop a life of their own and begin to dictate strategy.
Because of reward and incentive systems based on key performance metrics, managers all too often manage metrics such as ROMI rather than managing the business. For example, when profits or returns are limited under adverse economic conditions, companies often cut back on marketing investments in order to produce acceptable performance (ROMI’s). Ironically, for strong companies, this may be the best time to go on an offensive because less robust competitors may be weaker still.
Using the same metrics to both measure past performance and to resource the future can have disastrous results:
- The best way to kill new product innovations that have long-run payoffs is to use short-term, backward-looking metrics such as margins, turnover and return on assets that favor incumbent products thus starving innovations of badly need growth funds.
- Blurred insights can lead to questionable decisions. For example, higher short-run sales response elasticity for price-promotions has led to a systematic decrease in the share of marketing mix budgets allocated to advertising in the long run.
- Because marketing activities are listed as expenses rather than investments, they must typically “pay” for themselves within a year. Ironically, market-based assets such as customers and brands are the only assets that appreciate, and not depreciate.
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