Today we as consumer receive five times more information every day than we did 30 years ago. Moreover, technology has completely dominated that was we interact the world around us. Customers are evolved like never before. Today we have brands such as Google and Amazon which have managed to create dominance in their respective sectors and emerged as anchor points for entire ecosystem. They think way ahead of time so their business strategies. So how do they work on those?
Here are top five strategies that leading brands have tried and tested and attain success.
Going beyond story telling
Great brands constantly strive hard in creating great product and services which actually solve customer problems. They just not focus on storytelling to sell their products. In fact, their marketing strategy revolves around serving instead of just selling. These are the brands which primarily drive their business on the principal of positive utility.
As mentioned in interbrands 2018 reports, L’Oréal has shown that traditional CPG companies can also lead with experience, and has developed a number of service offers that utilize digital technologies to transform customer relationships with the brand. L’Oréal has recently acquired beauty tech company ModiFace which allows customers to experience a live, step-by-step tutorial and coaching with a makeup advisor, virtually try on personalized makeup looks, and even shop online.
Subscription goes viral
Traditionally, the most successful global brands are either born with born with a subscription business model or they have made significant adjustments to offer subscriptions. The recent example of brand which grew on subscription model is Netflix. As per Intra brand 2018, Netflix’s Brand Value grew 45 percent in 2018, the second fastest-growing brand, after entering the table in 2017, and continues to demonstrate globally. Over the years, Netflix has garnered rich consumer base who are prepared to subscribe directly to a media company.
Netflix began its original programming in 2012 and has received tremendous response since then. In fact, its stock market value is now greater than Disney.
As per Global Brands data, brands which have exhibit steady growth in over last decade which have invested on relevance and responsiveness. In fact, the top 10 fastest-growing brands over the last five years are those where Relevance and Responsiveness are their top-performing dimensions.
As Intrabrand report indicated, Hermès tops on Relevance parameter and has demonstrated a double-digit increase in Brand Value over the past five years. Hermès has continued to stay true to its DNA and origins in leather goods, while growing into a host of other categories as report quoted.
Learning from Luxury
As per Assocham data, Indian luxury market is set to grow to USD 30 billion in 2018 from USD 23.8 billion by the year end. As per Intrabrand report, luxury was highest growth category this year with 42 percent growth globally.
Global luxury brands have continued to show significant growth despite shifting expectations. Desire for luxury is driving premiumization in other categories. For example, leading mobile manufacture Samsung has shifted its price point and design to rival Apple, unveiling phones valued at over $2,000, such as the Samsung W2018.
The core reason behind luxury brand’s acceptance is their ability to access shifting cultural trends. For example, Gucci took serious effort to respond more rapidly to today’s business landscape helped it grow by 30 percent within the past year.
Leading coffee brewing company Starbucks has establish the notion that paying Rs300 for a coffee is an standard norm due to premium price attached to it. That is the power of brand. The drive to make brand a more important factor in customer decision-making is a critical way of fueling business growth.
Automobile could be yet another category which is heavily driven by the brands. The role brand plays in customer choice for the global brands in our study ranges from 30 percent for mainstream brands to more than 60 percent for luxury brands. That is the reason companies such as Nissan is focusing on increasing its Role of Brand by harmonizing its marketing activities for all products around a single core brand idea, and focusing on the overall Nissan customer experience.
(The above article is based on Interbrand 2018 report)