Your brand is not your brand Contents Introduction How social media changes things for brands Are ‘brand selfies’ good or bad news for your brand? Brand co-creation – a new paradigm How brands can succeed in the brave new world of consumer power Case study 1 – Tiffany & Co: What Makes Love True? How the luxury jewellers play on our heart strings using UGC Case study 2 – Burberry: The Art of the Trench How Burberry built emotional connection with millennials Case study 3 – TOMS: #OneDayWithoutShoes A case study in the power of Instagram for brands The future of brand management The opportunity for savvy brands HOW TO CO-CREATE VALUE ON SOCIAL MEDIA © Emerald Publishing 2017 Your brand is not your brand Do you know how to manage the growing power that consumers wield over your brand? If you don’t, you can say goodbye to the value of your brand, and your value as a marketer, as consumer influence continues to rise. Contents Introduction How social media changes things for brands We all know that social media has changed things in a big way. This white paper shows how social media has facilitated a paradigm shift not only in how brands and communities interact, but in where value is fundamentally created. Are ‘brand selfies’ good or bad news for your brand? Brand co-creation – a new paradigm How brands can succeed in the brave new world of consumer power Your brand is not your brand anymore. Now more than ever, your marketing team needs to understand that the role of consumers in the value-exchange process has permanently shifted. Case study 1 – Tiffany & Co: What Makes Love True? Whether this change is for the better or the worse is up to you. How the luxury jewellers play on our heart strings using UGC Who should read this Marketing strategists, social media managers, brand managers, and brand executives – this is valuable insight you all need. Case study 2 – Burberry: The Art of the Trench How Burberry built emotional connection with millennials What you will learn This white paper builds on the latest academic research and case studies of leading brands to show you: • How selfies can damage your brand image • What motivates consumers to generate content about your brand • How leading brands convert user-generated content into brand value • How the paradigm shift towards social-led co-creation changes the game for all marketers. Case study 3 – TOMS: #OneDayWithoutShoes A case study in the power of Instagram for brands The future of brand management The opportunity for savvy brands Links to related listicles, video, infographics, and other interactive #RealWorldResearch content Links to research articles on emeraldinsight.com – the platform to access all our publications 1. 2. © Emerald Publishing 2017 Your brand is not your brand Contents Introduction How social media changes things for brands Are ‘brand selfies’ good or bad news for your brand? Brand co-creation – a new paradigm 1. How brands can succeed in the brave new world of consumer power I How social media changes things for brands mage is important for all brands. For luxury brands, it is paramount. More than anyone else, luxury brands are required to maintain an ‘aura’, and an aesthetic that befits that aura. Key takeaways: Premium brands must at all times present an image that consistently communicates those often intangible attributes that create a sense of exclusivity. With the rise of social media, this has become an increasingly difficult task. • The days of top-down branding are over – consumers now play a fundamental role in defining brands • Consumer selfies are shaping your brand image, whether you like it or not • Your brand community is everything – engage with them or perish Key research: • ‘Heterotopian selfies: how social media destabilizes brand assemblages’, published in European Journal of Marketing • ‘Brand selfies: consumer experiences and marketplace conversations’, published in European Journal of Marketing 3. 4. Read now: the research on how selfies can damage brands While luxury brands meticulously craft their image on official social media platforms, a daily proliferation of consumer generated content can seem to fly in the face of their efforts, as Rokka and Canniford’s recent study of three premium champagne brands demonstrates. Case study 1 – Tiffany & Co: What Makes Love True? The importance of image How the luxury jewellers play on our heart strings using UGC The champagne industry presents an acute case of the challenges that face luxury brands today, especially on the major social networking platforms. An exclusive product by definition, champagne comes from a strictly defined geographical location in the wine growing region in France, where all producers must subscribe to the méthode champenoise enshrined in French law. Case study 2 – Burberry: The Art of the Trench How Burberry built emotional connection with millennials Case study 3 – TOMS: #OneDayWithoutShoes A case study in the power of Instagram for brands The future of brand management The opportunity for savvy brands 4. © Emerald Publishing 2017 Heritage and class are essential to champagne branding, with champagne brands some of the oldest in existence (Moët & Chandon was established in 1743). For centuries, these brands made themselves symbols of privilege and opulence, connecting the product with royal families, nobilities, and military officers. The connection with class was only strengthened by the French Revolution in 1789, after which champagne became something of a ritual at social gatherings and celebrations for an emerging bourgeoisie. An image from Moet and Chandon’s official brand account @moetchandon – the artful composition stands in stark contrast with many user generated photos Another subtly potent element of champagne branding is the imagery of magic. While all the leading champagne brands reference this imagery to some extent, Dom Pérignon go so far as to trace their heritage to the myth of a monk by the same name, who allegedly invented 5. the “magical elixir” at the abbey d’Hautvilliers. History proves this heady concoction of heritage, class and magic a recipe for brand success. Until now. The selfie phenomenon Thanks to the selfie phenomenon, and brand selfies in particular, the stories told by hashtags like #moet #veuve and #domperignon show that the way consumers interact with brands on social media does not always square up with official brand stories. Read now: the research on the power of brand selfies Of course, it is possible for consumer generated selfies to reinforce brand meanings, and sometimes they do. But while a relatively small number of brand selfies provide an unproblematic interpretation of the brand, others, as Presi et al explain, destabilise brands’ meanings, creating “symbolic clashes.” A far cry from the artfully composed shots of champagne flutes, pristine beaches, and summer lawns that we find on the official social accounts of premium champagne brands, consumer generated brand selfies feature nightclubs, conspicuous displays of multiple luxury brand items, and other objects from pets, to cars, to big TVs, “The magnitude of the brand selfie trend has made it a mainstream phenomenon of mediated brand culture, nourishing consumer tribes and confirming or contradicting marketercontrolled institutions and spaces.” – Presi et al to drugs. Consumer generated images display champagne in plastic cups and coffee mugs, mixed with juice, soda, or ice cream. Some consumers even tag or depict these brands ironically – effectively ‘trolling’ them by pulling faces, and incorporating humorous, inappropriate or irrelevant hashtags. Brands like Veuve Clicquot can do everything in their power to maintain a pristine Instagram profile. But what can they do when a consumer comes along, takes a selfie in the banality of the supermarket, and tags it ‘“Make the douchiest face plus duckface” #veuveclicquot #springbreak #rkoi #notreally”’? What’s a brand manager to do? It would seem that brand management is becoming an increasingly difficult job. And the situation that champagne brands face suggests that the control that marketers once enjoyed over the aura and aesthetics of their brand may be becoming a thing of the past. Your brand is not your brand Contents So what’s a brand manager to do in this brave new world of consumer influence and power? If the leading brands are anything to go by, it would seem that at least part of the answer is about letting go, Introduction How social media changes things for brands Are ‘brand selfies’ good or bad news for your brand? Brand co-creation – a new paradigm How brands can succeed in the brave new world of consumer power Case study 1 – Tiffany & Co: What Makes Love True? How the luxury jewellers play on our heart strings using UGC Case study 2 – Burberry: The Art of the Trench One user-generated image from Rokka and Canniford’s study (above) featured the caption ‘Cruise trip turn up yeh. Pat: “Make the douchiest face plus duckface.” #veuvecliquot #springbreak #rkoi #notreally’ Illustration credit: Maria Federley How Burberry built emotional connection with millennials Case study 3 – TOMS: #OneDayWithoutShoes relinquishing a bit of control, and embracing what the customer is trying to say. A case study in the power of Instagram for brands The future of brand management The truth is that consumers have played an important part in shaping brand meanings for many years. Decades of research show that consumers not only activate new brand meanings, but challenge The opportunity for savvy brands 6. © Emerald Publishing 2017 Your brand is not your brand Contents 2. Introduction How social media changes things for brands Are ‘brand selfies’ good or bad news for your brand? Brand co-creation – a new paradigm Brand co-creation – a new paradigm How brands can succeed in the brave new world of consumer power Key takeaways: meanings that firms and advertisers have designed. While a brand can do their best to construct a desired meaning, the way that their messages are ultimately received is beyond their control. This is why Rokka and Canniford understand the problem through the concept of ‘assemblages’ – the idea that brands, in reality, constitute a diverse range of expressive and material components. Some of these components serve to stabilise the brand identity – others do just the opposite. The jury is still out on exactly how brand selfies are affecting brands today. The research 7. “Brands are composed of heterogeneous elements that interact in ways that can either stabilize or destabilize an assemblage’s identity.” – Rokka and Canniford continues. What is clear, however, is that brands are beginning to find ways to work with the brand meanings that consumers create, sometimes to powerful effect. As ever, it appears that the overarching task of the marketer is to listen to and respond to what customers are saying. In so doing, radically new forms of interaction for brands and consumers start to emerge. Welcome to the era of brand co-creation. • Consumer content generates huge value for savvy brands that manage co-creation effectively • People engage with brands that share their values and connect emotionally • Brands must clearly communicate their values to consumers through social media Case study 1 – Tiffany & Co: What Makes Love True? How the luxury jewellers play on our heart strings using UGC Case study 2 – Burberry: The Art of the Trench Key research: How Burberry built emotional connection with millennials • ‘Storygiving as a co-creation tool for luxury brands in the age of the internet: a love story by Tiffany and thousands of lovers’, published in Journal of Product & Brand Management Case study 3 – TOMS: #OneDayWithoutShoes A case study in the power of Instagram for brands • ‘Emotionally engaging customers in the digital age: the case study of “Burberry love”’, published in Journal of Fashion Marketing and Management The future of brand management The opportunity for savvy brands • ‘How TOMS’ “one day without shoes” campaign brings stakeholders together and co-creates value for the brand using Instagram as a platform’, published in Journal of Fashion Marketing and Management 5. 8. © Emerald Publishing 2017 What is brand co-creation? Read now: the research on cocreation and brand equity C o-creation is the process of consumers and brands interacting, learning, and sharing information to create value. The concept itself is not new. First described by Prahalad and Ramaswamy as early as 2004, marketing theorists and practitioners alike have understood and practiced co-creation for well over a decade. But it remains big news. According to Prahalad and Ramaswamy, the new co-creation paradigm represents a fundamental shift in the basis of value. Whereas markets used to exchange value from producers to consumers, with co-creation, the line becomes blurred. In the co-creation paradigm, consumers both define and create value. 9. As Kristal et al’s table shows, at product level, firms have been co-creating with consumers for a few years now. In particular, this has involved encouraging customers to participate in the development of new products. What the latest research examines is the pivotal role that social media has played in facilitating the co-creation of value for brands. Consumers increasingly choose to engage with brands that they perceive as compatible with their personality, and congruent with their values. “Consumers now seek to exercise their influence in every part of the business system… Increasingly, consumers engage in the processes of both defining and creating value. The co-creation experience of the consumer becomes the very basis of value.” – Prahalad and Ramaswamy Your brand is not your brand As relationships between consumers and brands have become richer and more personal, more than ever consumers are using brands to build their self-identity. This gives consumers a powerful reason to interact with firms on social media, and opens the door for mutually beneficial value co-creation. Contents Introduction How social media changes things for brands Are ‘brand selfies’ good or bad news for your brand? It is here that savvy brands are building equity, by harnessing consumer desire to build their own identity through brands. Brand co-creation – a new paradigm How brands can succeed in the brave new world of consumer power This is how brands co-create value. Brand Offering Description Date Threadless T-shirts Designing own t-shirts Since 2000 Starbucks Tea and coffee Generating ideas for beverages and food Since 2008 LEGO Toys Generating ideas for a combination of bricks Since 2008 Coach Tote bags Designing a new tote bag 2008 Coca-Cola Soft drinks Designing a new can 2011 Volvic Water Designing a new on-the-go bottle 2011 Oral B Electric toothbrush Creation of an interactive toothbrush 2012 Hugo Boss Fragrances Designing new product packaging 2012 Citroen Cars Generating ideas for the Citroen DS3 design 2012 Nescafe Instant coffee Creation of a new coffee product 2013 Kellogg’s Cereals Creation of a new cereal product 2015 Florette Salad meals Creation of a new salad meal 2015 MMA Insurance service Creation of new services to be offered 2015 Kit Kat Chocolate bar Designing new product packaging 2015 Case study 1 – Tiffany & Co: What Makes Love True? How the luxury jewellers play on our heart strings using UGC Case study 2 – Burberry: The Art of the Trench How Burberry built emotional connection with millennials Case study 3 – TOMS: #OneDayWithoutShoes A case study in the power of Instagram for brands The future of brand management The opportunity for savvy brands Table from Kristal et al, “Is co-creation really a booster for brand equity? The role of co-creation in observer-based brand equity (OBBE)” 10. © Emerald Publishing 2017 Case study 1 – Tiffany & Co: What Makes Love True? Case study 2 – Burberry: The Art of the Trench Your brand is not your brand Contents Introduction How social media changes things for brands Are ‘brand selfies’ good or bad news for your brand? T iffany & Co’s luxury jewellery products are given and received at special occasions like celebrations, weddings, or valentine’s day – putting the brand in an excellent position to connect themselves with the most talked about of all human emotions: love. For the What Makes Love True? campaign Tiffany & Co encouraged their community to share stories about how, when and where they experienced true love, through the microsite whatmakeslovetrue.com. Hosting the so-called “storygiving” experience on the medium of a microsite notably enabled brand managers to keep an amount of control over consumer generated content, sidestepping the potential pitfalls of hosting the campaign on a social networking platform like 11. Read now: how Tiffany’s used true love stories to boost its brand “The relationship between seller and the buyer has progressed from a commercial transaction to a personal connection with the values that brands champion.” – Hughes et al T here was a time when Burberry were struggling with an incoherent global marketing strategy. So in 2006, they set a strategic emphasis on utilising digital platforms to reach their millennial target market with a coherent message. The aim was to enable customers to access Burberry on any device, creating the same feeling from the brand regardless of where, when and how they accessed it. Instagram. At the same time, it presented the community with an enticing opportunity to be featured on the brand’s website. The true love stories generated by the community fed into what Hughes et al describe as the “experiential and symbolic dimensions that add to the function of a product and make a luxury brand.” Customers found value in the platform which allowed them to share some of their most heartfelt memories, and enhance their selfidentification with the brand. In turn, symbolic meanings around the brand were co-created, generating value for the brand. Read now: the research on how Burberry use emotion As a result, we have seen several innovative campaigns from the iconic trench coat brand in recent months, which Straker and Wrigley have analysed in depth. Perhaps the most remarkable of these is the Burberry Kisses campaign, which enabled users to send and receive a kiss with loved ones around the world. As part of Google’s Art, Copy & Code initiative, “kiss recognition Brand co-creation – a new paradigm technology” gave users the sense that they were sending kisses by way of desktop cameras and touch screen devices. How brands can succeed in the brave new world of consumer power Case study 1 – Tiffany & Co: What Makes Love True? On the co-creation front have Burberry also been rather savvy. The Art of the Trench is the brand’s “living document”, hosted on the microblogging site Tumblr, which features curated user generated content from around the world. The ongoing initiative encourages consumers around the world – often in collaboration with professional photographers – to submit photos of “the trench coat and the people who wear it.” How the luxury jewellers play on our heart strings using UGC Case study 2 – Burberry: The Art of the Trench How Burberry built emotional connection with millennials Case study 3 – TOMS: #OneDayWithoutShoes A case study in the power of Instagram for brands Burberry’s Art of the Trench evidently shares with Tiffany’s What Makes Love True the trick of hosting content on what is effectively a microsite – enabling brand managers to benefit from co-creation, while maintaining ultimate control over what gets published. The future of brand management The opportunity for savvy brands 12. © Emerald Publishing 2017 Case study 3 – TOMS: #OneDayWithoutShoes Your brand is not your brand Contents Introduction How social media changes things for brands A user generated Instagram post from the #OneDayWithoutShoes campaign – credit @urbanluxcz L uxury brands are not the only ones harnessing the power of co-creation. TOMS are an example of a regular consumer brand who braved Instagram with a cocreation initiative, and to powerful effect. Since 2015, TOMS annually challenge Instagrammers to post a photo of their bare feet as part of the #OneDayWithoutShoes campaign. For each photo tagged on Instagram, the firm gives a new pair of shoes to a child in need. As TOMS’ founder Blake Mycoskie points out, the campaign means that even individuals who are not TOMS customers can simply take a photo and post #withoutshoes to make sure a child in need gets a new pair. It’s a co-creation initiative that clearly works both ways. What TOMS do is provide a vehicle 13. for Instagrammers to get behind a common cause, and express their values. In turn, as Roncha and Radclyffe-Thomas note, the narrative allows TOMS to experience a feedback loop of positive outcomes, increasing their support, their effectiveness, and their profitability. #OneDayWithoutShoes has been met with acclaim in the marketing community, and with good reason. A veritable coup for TOMS, it shows how a well-conceived cocreation initiative can offer immense value for consumers and brands alike, creating an upward spiral of winwin effects. “With the proliferation of social networks, the dynamic between brand and consumers has changed, through allowing the consumer to actively participate in the construction of the brand identity, bringing the brand closer to the consumer.” – Roncha and Radclyffe-Thomas Are ‘brand selfies’ good or bad news for your brand? 3. Brand co-creation – a new paradigm How brands can succeed in the brave new world of consumer power The future of brand management Case study 1 – Tiffany & Co: What Makes Love True? How the luxury jewellers play on our heart strings using UGC Key takeaways: • Consumers increasingly seek to influence every part of the business system • Brand managers must be more responsive than ever • Used well, social media benefits brands and consumers alike Case study 2 – Burberry: The Art of the Trench How Burberry built emotional connection with millennials Case study 3 – TOMS: #OneDayWithoutShoes Key research: A case study in the power of Instagram for brands • ‘Is co-creation really a booster for brand equity? The role of cocreation in observer-based brand equity (OBBE)’, published in Journal of Product & Brand Management The future of brand management The opportunity for savvy brands • ‘Co-creating unique value with customers,’ published in Strategy & Leadership 14. © Emerald Publishing 2017 Learn more about the Marketing eJournal Collection T he importance of having a meaningful two-way relationship with customers continues to increase. It becomes clear that consumers are able not only to help firms create better products, but also to add value through social media engagement. But it is the marketers who respond quickly and effectively to this change who put their brands at a distinct advantage. Here’s the challenge. As consumers increasingly expect meaningful social interactions with brands, and “seek to exercise their influence in every part of the business system,” as Prahalad and Ramaswamy put it, brand managers must be ever more responsive. The job of brand managers is not going to get any easier. “Consumers empowered by digital technology are no longer passive recipients of corporate communication, but active participants and co-creators of marketplace conversations.” – Presi et al The marketing guru Philip Kotler famously said that “markets change faster than marketing.” The development of brand value co-creation over the last few years seems to prove the point. Social media has spelled all sorts of change for marketers. 15. Read now: Kotler’s 11 best quotes Here’s the opportunity. Social media enables greater interaction, learning, and the sharing of information between consumers and brands than ever before. This improved communication has the potential to benefit us all, creating more empowered consumers, better informed brands, and value for both consumers and society. Your brand is not your brand A leading library of 23 marketing journals reporting on the key developments in marketing theory and practice for over 50 years. Featuring the latest thinking from globally recognized authors, including Philip Kotler, Jagdish Sheth and Christian Grönroos, this collection advances into new areas such as sports marketing, Islamic marketing and social marketing. With ten titles accepted in JCR, 91% ranked by Scopus and 4.9 million downloads in 2016 the journals in this portfolio boast both quality and relevance. Contents Introduction How social media changes things for brands Are ‘brand selfies’ good or bad news for your brand? Brand co-creation – a new paradigm How brands can succeed in the brave new world of consumer power Case study 1 – Tiffany & Co: What Makes Love True? How the luxury jewellers play on our heart strings using UGC Learn how Emerald can help you Case study 2 – Burberry: The Art of the Trench How Burberry built emotional connection with millennials Nurturing FRESH thinking that MAKES an impact Case study 3 – TOMS: #OneDayWithoutShoes A case study in the power of Instagram for brands Emerald Publishing was founded in 1967 to champion new ideas that would advance the research and practice of business and management. Today, we continue to nurture fresh thinking in applied fields where we feel we can make a real difference, now also including health and social care, education and engineering. We publish over 300 journals, more than 2,500 books and over 1,500 case studies, via our dedicated research platform emeraldinsight.com The future of brand management The opportunity for savvy brands 16. © Emerald Publishing 2017 Your brand is not your brand Contents Introduction How social media changes things for brands Are ‘brand selfies’ good or bad news for your brand? Brand co-creation – a new paradigm How brands can succeed in the brave new world of consumer power Case study 1 – Tiffany & Co: What Makes Love True? How the luxury jewellers play on our heart strings using UGC Case study 2 – Burberry: The Art of the Trench How Burberry built emotional connection with millennials Case study 3 – TOMS: #OneDayWithoutShoes A case study in the power of Instagram for brands The future of brand management The opportunity for savvy brands © Emerald Publishing 2017