BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
Table of content
1 Introduction ....................................................................................................................................... 2
1.1
Thesis statement ................................................................................................................................ 3
1.2 Research questions .................................................................................................................................. 3
1.3 Theory of science .................................................................................................................................... 4
1.4 Theoretical framework ............................................................................................................................ 5
1.4.1 Jean-Noël Kapferer ........................................................................................................................... 6
1.4.2 David Aaker...................................................................................................................................... 6
1.4.3 Grönroos ........................................................................................................................................... 7
1.4.4 Susan Fournier .................................................................................................................................. 7
1.5 Delimitation ............................................................................................................................................. 7
1.6 Structure .................................................................................................................................................. 8
2 Theoretical background ................................................................................................................... 10
2.1 Brand identity ........................................................................................................................................ 10
2.1.1 Jean-Nöel Kapferer ............................................................................................................................. 10
2.1.2 Aaker .................................................................................................................................................. 12
2.2 Brand Loyalty ........................................................................................................................................ 14
2.2.1 Aaker .............................................................................................................................................. 14
2.2.3 Grönroos ......................................................................................................................................... 15
2.2.2 Fournier .......................................................................................................................................... 17
4. Introduction to the Case Study – B&O ............................................................................................ 18
4.1 Bang & Olufsen ..................................................................................................................................... 18
4.2 Bang and Olufsen’s brand Identity ........................................................................................................ 19
5. “Speaker docking gets serious with Bang & Olufsen” ..................................................................... 22
5.1 Analysis of the video ............................................................................................................................. 22
5.1.1 Visual and musical elements .......................................................................................................... 23
5.2 The video and brand identity ................................................................................................................. 24
5.2.1 Kapferer .......................................................................................................................................... 24
5.2.2 Aaker .............................................................................................................................................. 26
6. Discussion ....................................................................................................................................... 29
7 Conclusion ....................................................................................................................................... 32
Pia Christiansen
1
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
1 Introduction
The technology market is one of the most rapidly changing markets today, where changes happen
all the time making it hard for companies to keep up the innovation and differentiation of products.
Technology is everywhere and it has become a major part of today’s world, and it can be argued
that it has resulted in a technology culture. This has also lead to a major saturation of today’s
market with more brands than ever before and therefore also more competitors than ever. (Hamann
et. al. 2007) This kind of market saturation calls for strong brands which can differentiate
themselves from the many other brands on the market. (Hamann et. al. 2007)
However, technology firms often find it hard to accept the importance of branding. According to
Mohanbir Sawhney technology firms find it difficult to accept the importance of brand building
because they see branding and technology as complete opposites. Branding is consistency but
technology is change, as technology firms believe that their success lay in innovation, product
feature enhancements, and improving price performance. However it can be hard to differentiate if
the focus is solely on product features and price. (Sawhney 2004, p. 201)
This is also a problem according to Nilson who argues that it is hard to differentiate a product as the
difference in product attributes is decreasing both concerning product performance, but also in
connection to the more tangible objects of products. In other words the difference between ‘poor’
and ‘bad’ product alternatives has in most sectors narrowed significantly. (Nilson 2000, p. 7)
Therefore, there needs to be something more to a brand than just the product – there must also be a
brand identity system, which will support the brand’s differentiation strategy. (Aaker 2002, p. 68)
This is specially a problem in the worlds of high-tech products, where the managers often focus on
product attributes and see consumers as rational human beings. (Aaker 2002)
With the above in mind it would be interesting to look at a luxury technology brand like Bang &
Olufsen (B&O), which offers products at up to three times the competitor’s prices. B&O specialises
in luxury audio and video solutions with an emphasis on quality and design.1 However this
company is also interesting to look at because it is facing challenges in part due to the financial
crises. The company faced a massive decline in market value due to the financial crises in 2008,2
1
2
http://www.bang-olufsen.com/company
http://www.guardian.co.uk/business/2008/jan/10/retail?INTCMP=SRCH
Pia Christiansen
2
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
(Appendix 1) where other luxury brands such as Louis Vuitton did fine. According to luxury good
analysts Merrill Lynch, brand strength is the key to survive in a turbulent economy. 3 (Appendix 2)
B&O are still running and today the company is turning its economy around. If their stock courses
are viewed it is clear that their stocks are increasing and stabilising. (Appendix 3) But if their
financial statement from the financial year 2009/2010 is viewed it is clear that this has been due
partly to major cut backs and the reducing cost within several fields. Furthermore ,their Business-toBusiness with several automobile dealers has made a significant impact on their results. (Appendix
4)
In light of the challenges B&O faces, its perceived status as a luxury brand and the increased focus
on luxury brand survival in a period marked by credit crunch, it is therefore interesting to dive into
the case of B&O to understand them better from an academic and business perspective.
Furthermore B&O is, as mentioned, a luxury brand and their prices range way above competitors
which calls for a strong brand, because it demands a strong brand to demand higher prices.
(Anderson and Carpenter, 2005 p.184)
1.1 Thesis statement
Taking its departure in this setting, the thesis wishes to examine how B&O communicates its brand
identity system, with focus on their recently launched commercial video on YouTube and in
continuation of this discuss how B&O deals with aspects of brand loyalty as part of the identity
system.
To deal with this problem statement in a structured approach the thesis wishes to include the
following research questions as means to understand, learn and reflect on the theoretical disciplines.
1.2 Research questions
1. How is the concept of brand identity understood from the paradigm of;
a. Jean-Nöel Kapferer
b. David A. Aaker
2. How is the concept of brand loyalty understood from the paradigm of
3
http://www.guardian.co.uk/business/2008/aug/31/retail1
Pia Christiansen
3
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
a. David A. Aaker
b. Susan Fournier
c. Chrisitan Grönroos
3. How does the commercial video for the BeoSound 8 communicate B&O’s brand identity
from the perspective of:
a. Jean-Nöel Kapferer
b. David A. Aaker
4. How does the brand identity deal with elements of loyalty from the theoretical perspective
of:
a. David Aaker
b. Susan Fournier
c. Christian Grönross
1.3 Theory of science
Theory of science provides a framework for providing meaning and understanding of an individual
phenomenon. (Skinner 1986)
For the writing and researching of this thesis the scientific approach of philosophical hermeneutics
and the hermeneutical circle will be applied.
Philosophical hermeneutics was envisioned by the German philosopher Hans-Georg, who studied
under Heidegger and extended his hermeneutical philosophy. Gadamer supports the traditional idea
of understanding an unfamiliar text or way of life as a holistic process, and the notion of operating
within a hermeneutic circle where a person moves back and forth between specific parts of the
‘text’ and his or her conception of it as a totality. (Skinner 1986) So in order to understand a certain
text or situation you must understand the context which in term cannot be understood without
understanding the parts making up the text or situation. Therefore, it works as circles where the
investigator moves back and forth. However, unlike the traditional hermeneutic tradition, Gadamer
argues that you cannot make understanding possible without prior knowledge of a subject so you
can never enter a field as tabula rasa but will always be affected by prior knowledge. He argues
that:
Pia Christiansen
4
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
‘Understanding is not a matter of forgetting our own horizon of meanings and putting
ourselves within that of the alien texts or the alien society; it means merging or fusing
our own horizons with theirs.’ (Skinner 1986, p. 25)
He argues that it is about combining our own horizons with the horizon of what we wish to
investigate. Therefore, the result will always be affected by the author’s preconceptions and
prejudices of the investigated topic;
‘…preconceptions and prejudices are what make understanding possible in the first
place. They are bound up with our awareness of the historical influence or effectivity
of the text; and without this awareness we would not understand it.’ (Skinner 1986, p.
25)
Furthermore, Gadamer argues that there can be no final truth as there will always be more to look
into. (Skinner 1986)
The hermeneutical circle will be used by moving in and out from an overall perspective into
specific parts. First an overall understanding has been established and in order to understand this the
thesis will look into specific parts of this understanding, in order to create meaning. In the video
analysis (cf. 5.1) a semiological approach will be applied in order to understand the different
elements constructing the meanings of the movie and the context the product is placed in. However,
according to the semiological approach these elements could not be understood without a prior
knowledge and the whole of the movie could not be understood without the parts (Barthes 1977) –
it therefore fit with the approach of the hermeneutical circle.
1.4 Theoretical framework
This theoretical framework will provide an overview and justification of the theories which will be
applied in the answering of the problem statement and research questions.
This thesis will look into the concept of brand identity on the basis of two main
authors Jean-Noël Kapferer and David Aaker. The focus will be on how B&O creates and
communicates brand identity through their campaign video for the new BeoSound 8. Furthermore,
the discussion will employ theory about brand loyalty. David Aaker links the two concepts, but in
Pia Christiansen
5
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
order to explore the concept of brand loyalty even further, and give it an additional perspective, the
theory of Susan Fournier and Christian Gönroos will be applied.
These four main authors will be presented further below and their theoretical
perspectives will be elaborated in the theoretical background section. (p. 10)
1.4.1 Jean-Noël Kapferer
Jean-Noël Kapferer is considered an expert within the field of branding. He has published six books
on branding, advertising and communication. He is a professor of marketing and works as a
consultant to many European, Asian and U.S. corporations. (Kapferer 2008)
In this thesis, his book “The New Strategic Brand Management” will be applied.
Kapferer puts a large emphasis on the product and argues that without a product there would not be
a brand. (Kapferer 2008)
‘Brands cannot exist without a support (products or service). This product and service
becomes effectively an embodiment of the brand, that by which the brand becomes
real.’(Kapferer 2008, p. 10)
He does not solely focus on the product but acknowledges the fact that there are more to a brand
than just the products. However he does have a very strategic view on branding and emphasises the
importance of branding as a technique for a company to gain profit. (Kapferer 2008, p. 9)
Kapferer’s view on identity is mainly presented in his identity prism, which will be elaborated on
later and applied in the case of B&O. (cf. 4.2 and 5.2.1)
1.4.2 David Aaker
David Aaker is, like Kapferer, a much acknowledged author within the field of branding. Aaker is
the author of 10 books and more than 80 articles. In his book “Building Strong Brands” Aaker
presents a lot of relevant thoughts to discuss both in connection to brand identity and brand loyalty.
Aaker argues strongly for the fact that a brand is more than a product (Aaker 2002, p. 75) and
presents a brand identity system. Aaker generally emphasises the identity perspective of branding
more than Kapferer who emphasises the strategic view.
The identity system will be the basis for the discussion of brand identity from Aaker’s
point of view. He argues that this system should end up with a brand-customer relationship. This
leads to the next main author applied in this thesis, Grönroos, who argues for a connection between
Pia Christiansen
6
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
brand loyalty and brand-customer relationship. The concept of brand loyalty will first be presented
from Aakers strategic approach and move on to two more relationship oriented perspectives.
Aaker’s thoughts about interpretation as an individual process fit well with the thoughts of
philosophical hermeneutics. However he has a bias towards essentialism, which does not fit with
the thoughts of philosophical hermeneutics, as this tradition does not believe in one final truth.
(Skinner 1986) Furthermore, his emphasis on measuring is contradicting with the philosophical
hermeneutic approach.
1.4.3 Grönroos
Grönroos will be the third main theoretician contributing to this thesis. He is a professor of
marketing at the Centre for Relationship Marketing and Service Management in Finland. He has
published several books and articles on the subject of relationship marketing. Two of these
“Relationship Marketing: strategic and tactical implications” (Grönroos 1996) and “The Value
Concept and Relationship Marketing” (Ravald and Grönroos 1996) will be applied in this thesis and
will contribute to the discussion of brand loyalty and how it is connected to relationship marketing.
Grönroos puts a large emphasis on the relationship part of brand loyalty and argues that there has
been a shift in marketing from the more traditional marketing paradigm with the 4 P’s of marketing
to a relationship marketing paradigm. (Grönroos 1996)
1.4.4 Susan Fournier
The final main author who will contribute to the answering of this thesis is Susan Fournier and her
article “Consumers and their Brands” (Fournier 1998) Fournier is an assistant professor of Business
Administration at Harvard University, Cambridge.
Fournier, like Grönroos, puts a large emphasis on the relationship part of branding and in the
building of brand loyalty. Her article is built on a study which shows that consumers form different
kinds of relationship with certain brands in their lives. Her article is therefore interesting for the
discussion of brand loyalty. (Fournier 1998)
1.5 Delimitation
Brand identity is a very broad topic with many different aspects to discuss, however, due to the
limited size of this thesis it will only be viewed from the perspective of the Kapferer and Aaker,
Pia Christiansen
7
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
presented above. Furthermore, the concept of brand loyalty will only be view from the perspective
of Aaker, Grönroos and Fournier, even though this field also contains many other interesting
aspects. This means that many other theoreticians have been left out. However, as argued above, the
four chosen theoreticians have been chosen because they have some complementary views on brand
identity and loyalty, which will broaden the analysis and discussion.
The limited size also means that the main focus will be on a specific B&O product and the
communication related to this product. This means that the many other products the company
produce and sell will not be included in the analysis or discussion. However there will be a chapter
providing information on B&O derived from their own website and articles about the company.
The focus will also solely be on Business-to-consumer communication even though B&O has a lot
of Business-to-business initiatives.
The assignment will have a western perspective as the main theoreticians and the author of this
thesis is from western cultures. There have not been specified a certain market and the main
analysis is based on a video distributed through YouTube, which is a global media, this thesis,
however, does not take cultural differences into consideration.
The analysis of the video will of course be based on theory but as the scientific approach also
underlines it will be interpreted from the view point of the author of this thesis. This interpretation
will therefore be affected by the author’s prior knowledge about the different subjects discussed in
the thesis. This will affect the whole of the assignment as the author will always put it into his or
her own perception. Overall for the assignment the method of the hermeneutical circle will be
applied which means that the result will not end in a single truth as both the scientific and
methodological approach refutes this.
1.6 Structure
This thesis will start off with a chapter accounting for the theoretical background where the theory
of the four main theoreticians, applied in the thesis, will be elaborated. The focus will be on their
thoughts on brand identity and brand loyalty. Hereafter there will be a chapter introducing the case
study of the thesis, B&O. This will cover main findings about B&O in terms of how they perceive
themselves and key features related to the company and their products. Then there will be a chapter
covering the analysis of the commercial video for the BeoSound 8 with an emphasis on analysis of
image and sound. This will be connected to an analysis of how the video communicates brand
Pia Christiansen
8
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
identity according to the framework of the discussed theoreticians. Finally the above mentioned
chapters will be joined together in a discussion where the concept of brand loyalty will be included.
At last there will be a conclusion with a summing up and answering of the thesis statement.
Pia Christiansen
9
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
2 Theoretical background
This paragraph will provide the theoretical basis for looking into the research questions and
answering of the problem statement. The theories will provide the reader with an understanding of
two theoretical perspectives on brand identity and three theoretical perspectives on brand loyalty.
2.1 Brand identity
First the concept of brand identity will be viewed from the theoretical perspective of Jean-Nöel
Kapferer and David A. Aaker, briefly presented above (cf. 1.4.1 and 1.4.2), in order to answer
research question 1. The brand identity perspective is, as argued in the introduction, an important
part of creating a strong brand. However, what constitute a successful brand identity differs
according to the theoretical perspective.
2.1.1 Jean-Nöel Kapferer
Kapferer has a very profit orientated approach to branding and sees branding mainly as a tool to
create profit. (Kapferer 2008, p. 9) Furthermore he has a large emphasis on the product perspective
of branding and, as stated in the introduction, argues that without a product there would not be a
brand. However he does acknowledge that a brand is more than a product and argues that they have
an identity which he defines as;
‘A brand is not the name of a product. It is the vision that drives the creation of
products and services4 under that name. That vision, the key belief of the brands and
its core values is called identity.’ (Kapferer 2008, p. 171)
As this quote states Kapferer sees brands as more than just a name or a product but acknowledges
that brands have an identity, but he still links this identity closely to the product.
Kapferer argues that brands should have a deeper meaning and inspiration, a
character, their own beliefs, and help consumers in their lives and in the discovering of their own
identity. (Kapferer 2008, p. 182) He has integrated this perception of the brand identity into six
facts, which he calls the “Brand identity prism”. (See appendix 5) These six facets include
physique, personality, culture, relationship, customer reflection and self image. The six facets are all
interrelated and the content of one facet echoes that of another. In the figure, the six facets are
divided both vertically and horizontally according to mutual features. The three facets to the left,
4
In this thesis the focus will be on the product aspect and the service aspect is therefore left out.
Pia Christiansen
10
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
physique, relationship and reflection, are categorized as external and the facets to the right,
personality, culture and self-image, as internal. The two top facets are meant to reveal something
about the picture of the sender and the two in the bottom should reveal something about the picture
of the recipient. (Kapferer 2008, p. 182-87)
As the identity prism is the main basis for the analysis and discussion of B&O’s brand
identity, from the perspective of Kapferer, it will be elaborated further in the following section. The
first facet, physique, can briefly be described as the brand’s backbone and the tangible value added
to the brand. (Kapferer 2008, p. 182) The physical facet can therefore be argued to be the basis of
the brand and the basis for the physical elements that surround the brand. The brand viewed from a
personality perspective is the second facet. Here the focus is on the brand as a character, concerning
what the brand “speaks” of its products and showing what kind of person it would be if human.
(Kapferer 2008, p. 183) The third facet is where the brand is viewed from a cultural perspective. It
is argued that a brand has its own culture from which every product is derived. The cultural facet is
concerning the basic principles governing the brand in its outward signs in terms of product and
communication. (Kapferer 2008, p. 184) In other words the cultural aspect concerns the values the
brand communicates. This cultural perspective links the brand to the company and plays an
essential role in the differentiating of the brand. (Kapferer 2008, p. 185) The fourth facet is the
brand as a relationship which involves what kind of relationship the brand communicates in terms
of e.g. friendliness or love. (Kapferer 2008, p. 185) The brand seen as a customer reflection is the
fifth facet with focus on how the consumer reflects him- or herself in terms of the brand. It focuses
on how the consumer relates to the brand in terms of how the consumer wishes to be perceived. So
the brand should focus on conveying how the consumers wish to be portrayed and not as they really
are as a result of buying the brand. (Kapferer 2008 p. 186) The final facet concerns how the brand
speaks to people’s self-image and how these can develop an inner relationship with themselves
through the brads they use. (Kapferer 2008 p. 186)
The key to a good identity prism is recognised by three characteristics: there are few
words to each facet, the words are not the same on different facets and all words have strength:
identity is what makes a brand stand out. (Kapferer 2008, p. 187)
From this it can be argued the Kapferer sees the development and communication of a
brand identity with focus on the sender of the message. It is the brands that have the gift to speak to
the consumer and tell them why they should buy this brand.
Pia Christiansen
11
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
‘Brads have the gift of speech and they can only exist by communicating.’ (Kapferer
2008, p. 196)
‘It is not up to the consumer to define the brand and its content; it is up to the
company to do so.’ (Kapferer 2004, p. 82)
From this it can be derived that brands should tell the consumer what the brand stands for and why
the consumer should buy this brand. This is also visible in the identity prism where the focus is
constantly on how the company can create a perception in the minds of the consumer.
Kapferer presents some interesting thoughts about brand identity which can be used for looking
closer at B&O brand identity. However, in order to provide another perspective of the concept of
brand identity the paradigm of Aaker will be discussed next.
2.1.2 Aaker
David Aaker has a more consumer oriented approach to branding, where he argues strongly for the
fact that a brand is more than just a product. Kapferer also acknowledge the fact that a brand is
more than a product, but he still puts a larger emphasis on the products relation to the brand in
comparison to Aaker. Aaker argues that a brand is something unique which cannot be copied easily
unlike a product which contains features that can be copied easily. (Aaker 2002, p. 75) Therefore it
is important to focus on other aspects than just the product in order to create a strong brand identity.
He argues that a brand is a combination of different assets and liabilities which form the brand.
Aaker calls these different assets and liabilities for brand equity. The major asset categories are
brand name awareness, brand loyalty, perceived quality and brand associations. One of the main
focuses in this thesis is the concept of brand identity which Aaker argues drives the brand
associations:
‘Brand associations are driven by the brand identity – what the organization wants
the brand to stand for in the customer’s mind. A key to building strong brands, then, is
to develop and implement a brand identity’ (Aaker 2002, p. 25)
As stated in the quote brand associations are driven by brand identity and this identity is the key to
building strong brands.
Aaker argues that the brand identity works in the same way as an identity works for humans in
terms of its ability to provide direction, purpose and meaning. He has therefore developed a brand
Pia Christiansen
12
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
identity system which consists of different elements which provides the brand with this direction,
purpose and meaning. First of all, a brands identity has a structure which consist of a core and
extended identity. The core identity can be identified as the centre of the brand in terms of the
elements which are central both to the meaning and success of the brand. (Aaker 2002, pp. 85-86)
The extended identity, however, consist of the elements that provide the brand with texture and
completeness. (Aaker 2002. pp. 87-88) These elements can be constituted of four different brand
identity perspectives which are identified in terms of brand as; a product, an organization, a person
and a symbol. The aim of these four perspectives is to consider different brand elements and
patterns in order to help clarify, enrich and differentiate an identity. (Aaker 2002, p. 78) Many of
these elements are similar to the elements in Kapferer’s identity prism, for example the brand as a
person. However, Kapferer argues that all the elements (facets) needs to be present as they are
interrelated, where Aaker argues that a brand does not need to adopt all or even several of these
perspectives. (Aaker 2002, p. 78) The brand identity system can be seen in appendix 6. As the
identity system will be used extensively in the discussion of B&O brand identity, from Aaker’s
perspective, later in this assignment the individual parts will be discussed a bit further.
The first element, the brand as product, focuses on product related associations. Even
though Aaker argues that a brand is more than a product he also argues that it is important to
remember that product-related associations often are linked directly to brand choice decisions and
the use experience. (Aaker 2002, p. 78) One of the core elements of a brand’s identity is usually the
trust the consumers hold in the product, therefore the product is important for the brand identity.
The attributes related to a product can provide the consumer with both functional and emotional
benefits. Furthermore these attributes can create a value proposition by offering something extra or
something better than competitors. (Aaker 2002, p. 78-80) The second identity perspective is brandas-organization. This perspective focuses on the organisation’s attributes rather than those of the
product, for example a drive for quality. This can, however, also be classified as a product related
feature, so Aaker argues that the brand aspect is described in terms of its context, so it could be a
product attribute in one context and an organizational attribute in another. The advantage of
organisational attributes, compared to product, is that these are more enduring and resistant to
competitive claims, because it is more difficult to duplicate an organisation and its features than the
features of a product. (Aaker 2002, p. 82) Brand-as-person was the third perspective where it is
argued that a brand can be perceived in terms of having personal features, like Kapferer argued. The
final identity perspective is brand-as-symbol. This perspective can help the brand provide cohesion
Pia Christiansen
13
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
and structure to the identity making it easier to gain recognition and recall. The symbol perspective
can be expressed in terms of many things including, visual imagery, metaphors and brand heritage.
(Aaker 2002, p. 84-85) All the identity perspectives contain several sub points which help clarify
the elements of the perspectives.
From the core and extended identity, constituted by the four identity perspectives,
Aaker’s identity system moves on to value position, credibility or customer relationship. The value
proposition can be defined as:
A brand’s value proposition is a statement of the functional, emotional, and selfexpressive benefits delivered by the brand that provide value to the customer. An
effective value proposition should lead to a brand-customer relationship and drive
purchase decisions. (Aaker 2002, p. 95)
The core and extended identity should therefore end out in value proposition which tell the
consumers of the benefits connected to the certain brand, formed by the identity perspectives. At
last it should end in a brand-customer relationship. (Aaker 2002, p. 79)
Even though Aaker includes a brand customer relationship in the end, he also has a focus on the
brand “speaking” to the consumer and not interacting with the consumer.
2.2 Brand Loyalty
From the concept of brand identity the focus will switch to brand loyalty. Brand loyalty is important
for several reasons which will be discussed below from the theoretical perspective of David Aaker,
Christian Grönroos and Susan Fournier. The knowledge derived from this part will be used in the
discussion part.
2.2.1 Aaker
Aaker presents brand loyalty as the third brand asset in his conceptualization of brand equity, which
was briefly presented above (cf. 2.1.2). He has two main arguments for why brand loyalty is
important and relevant to discuss, namely:
‘Brand loyalty is a key consideration when placing a value on a brand that is to be
bought or sold, because a highly loyal customer base can be expected to generate a
very predictable sales and profit stream.’ (Aaker 2002, p. 21)
Pia Christiansen
14
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
‘The impact of brand loyalty on marketing costs is often substantial: It is simply much
less costly to retain customers than to attract new ones’ (Aaker 2002, p. 21)
Aaker presents some basic and important reasons for focusing on brand loyalty. His argument is
that brand loyalty can be enhanced by introducing different programmes. In “Building Strong
Brands” he presents three different kinds of programmes; frequent-buyer program, Customer Clubs
and Database Marketing. Frequent-buyer programs can for example provide a discount to loyal
customers. Customer clubs can include many different things, discounts, newsletters, forums for
exchange of experience etc. Database marketing is sort of a by-product of the other two which can
be used to target a more narrow segment e.g. in the communication of news and product launches
etc. (Aaker 2002, pp. 23-24) A common benefit for these programs is that the company gets the
possibility to show the customers that they care about them.
However his approach to brand loyalty is very strategic which can be seen in
suggestions such as the organisations estimating the value of their existing customers and dividing
them into groups – loyalty segmentation. (Aaker 2002, p. 22)
Aaker briefly introduces the idea of enhancing loyalty by developing or strengthen the company’s
relationship with the consumer, through the initiatives introduced above. However, in order to view
this further two more theoreticians have been included, who puts a larger emphasis on relationship
building as the key to brand loyalty.
2.2.3 Grönroos
Grönroos views brand loyalty from a much more relationship oriented paradigm. In this thesis his
views will be derived from two of his articles, “Relationship marketing: strategic and tactical
implications”, written by himself and “The Value Concept and Relationship Marketing” written in
cooperation with Annika Ravald.
First of all Grönroos argues that there has been a shift in the marketing paradigm from traditional
marketing with the 4 P’s to a more relationship oriented paradigm. He does not dismiss the 4 P’s
but he argues that they are not well fitted for to today’s competitive situation, where customers
demand things like more value connected to the core product, reliable service and a trustworthy
relationships. The switch has been from what firms can do to their customers to what firms can do
for their customer. (Grönroos 1996, p. 6)
Pia Christiansen
15
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
According to Grönroos a key requirement in a relationship marketing strategy is to be able to offer
something extra to the consumer;
‘A key requirement in a relationship marketing strategy is that a manufacturer,
wholesaler, retailer, a service firm or any supplier knows the long-term needs and
desires of customers better and offers added value on top of the technical solution
embedded in consumer goods, industrial equipment or services.’ (Grönroos 1996, p.
9)
In his article written in cooperation with Ravald “The Value Concept and Relationship Marketing”
they link brand loyalty to relationship marketing as they argue that the idea of relationship
marketing first and foremost is to create customer loyalty. (Ravald and Grönroos, p. 19) They
present the following model:
(Ravald and Grönroos 1996, p. 25)
In this model they argue that the way to customer loyalty and towards what they call a mutually
profitable relationship for supplier and customer, is achieved through first increasing benefits and
the move on to relatioship. They argue that loyalty is a long-term relationship and in order to reach
this the company first of all needs to focus on winning the consumer in the competitive market
through elements such as superior product quality – identity building elements such as those
discussed above (cf. 2.1). However, these are not the most valuable aspects when it comes to a long
term relationship. Here they argue for the importance of safety, credibility, security, continuity, etc.
(Ravlad and Grönroos 1996, p. 24) This fits with Aaker’s idea of the brand identity ending in a
relationship however his model mainly focused on the identity building part.
Pia Christiansen
16
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
2.2.2 Fournier
Susan Fournier, like Grönroos, has a relationship oriented approach to branding and brand loyalty.
The theory applied in this thesis is derived from the article “Consumers and their Brands” (1998) In
this article Fournier presents a relationship oriented approach to branding and argues that
consumers form a relationship with certain brands in their lives. The article is built on a study she
has conducted, in which she looks into the relations between consumer and brand and the impact
these relations have for the consumer.
Fournier does not have the same strategic approach to loyalty, as Aaker, but sees it from a
relationship perspective which is more organic. She argues that consumers choose more than a
product or a brand. Instead consumers form a relationship with their brands and the brands function
as a way to provide their life with meaning;
‘Brands cohere into systems that consumers create not only to aid in living but also to
give meaning to their lives. Put simply, consumers do not choose brands, they choose
lives.’ (Fournier 1998, p. 367)
Susan Fournier acknowledges that it is context based and that this relation is not found in every
purchase a person make. (Fournier 1998) The quote underlines Susan Fournier’s focus on the
consumer but it also stresses the fact that the focus needs to be on something more than the product
or brand. If people chose lives then the brand has to provide some insight to how the consumer’s
life will be affected by a specific brand. If a brand is chosen as a symbol of a consumer’s lifestyle
then this consumer should also be loyal to the brand until the lifestyle changes.
One problem with the study conducted by Susan Fournier, and the article derived from it, is that it
has only included female participants. However, she still provides some interesting and additional
thoughts for the discussion on brand loyalty.
Pia Christiansen
17
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
4. Introduction to the Case Study – B&O
The following chapter will provide the reader with a deeper understanding of the case study, Bang
& Olufsen. The chapter will give a brief overall introduction to the company and then move into
their market situation. At last the chapter will look into what classify B&O’s brand and
organisation. The findings in the chapter will be used to get a better understanding of B&O before
moving on to the analysis of the communicated brand identity in the commercial video.
Furthermore, it will be used in the discussion part.
4.1 Bang & Olufsen
B&O is an international company with a globally recognised brand, and products currently sold in
more than 70 countries across the world. The company was founded in a 1925 by two young Danish
engineers, Peter Bang and Svend Olufsen. Today B&O’s headquarter is still placed in the small city
where it all started, Struer, Denmark. The company started with a focus on radios, however, over
the years their product line increased and today the company manufactures and sell a wide range of
audio and video products, including television sets, music systems, loudspeakers and
telephones.(Financial statement 09/10–appendix 8)
B&O faced a very tough time in the financial year 08/09 due to a global financial
crises which turned into a global recession. This caused a slowdown in private consumption within
all product categories but especially in sales of luxury goods. However, B&O also recognises that
their negative sales trends were affected by a delay in product development and products failing to
meet sales expectations and requirements for new products. (Financial statement 08/09 p. 5appendix 9) All of this resulted in a falling stock. Their stock fell from over 300 in 2007 to around
30 at the end of 2008. Today, however, the stocks are improving and has increased to around 75-80
and is stabilising5 (appendix 3) The company also faces increasing competition, from manufactures
such as Sony, Samsung and Philips who has started putting more emphasis on sophisticated design
and technology but at much lower prices.6(Appendix 10) This market situation demands a strong
brand as argued in the introduction.
5
6
http://investing.businessweek.com/research/stocks/charts/charts.asp?ticker=BO:DC
http://afp.google.com/article/ALeqM5g9hADh2f9YQ7dR0r4XAUXq71RKqg
Pia Christiansen
18
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
4.2 Bang and Olufsen’s brand Identity
In order to get some insight to how B&O perceives themselves, in terms of their brand identity,
their website has been viewed. This will be used in the next chapter where the communication of
their brand identity will be analysed in one of their commercial videos. However, some key aspects
of the identity need to be identified before the communication of them can be analysed.
Furthermore it will be used in the discussion chapter where all the chapters are joined in a
discussion.
B&O’s website has been viewed in terms of the parts where the company expresses
thoughts of themselves, more specifically under the part called “company”. Here B&O’s CEO, Tue
Mantoni, expresses his thoughts of the company:
‘Since the beginning in 1925, Bang & Olufsen has focused on providing unmatched
customer experiences through a distinctive range of high-quality products and a
dedicated retail network. Bang & Olufsen has grown from a small local operation to a
global icon combining design excellence and technology with strong emotional
appeal’.7
As Tue Mantoni expresses the company emphasises technology and design and the creation of a
strong emotional appeal and of high quality, these are some of the key words which can be
connected to B&O.
The large emphasis on the design of their products is expressed in their corporation
with different designers in order to develop their product design. The products have some key
features which are classical for their design, for example the use of stainless steel in combination
with black colours. Overall the design consists of very simple and clear lines which have been the
design vision since 1965, where the company started a corporation with the famous Danish designer
Jacob Jensen. (Dickson 2008) B&O chose to emphasise design as a differentiating point in order to
deal with competition from Asia back in the 1960ies (Financial statement 09/10 p. 8-appendix 11)
Over the years B&O has worked with many different designers and they still do, and they are still
loyal to the key features introduced by Jacob Jensen in combination with new trends, for example in
form of new colour combinations. An overview of the design through the last 60 years can be seen
in appendix 12 where the key features are clearly visible through the years.
7
http://www.bang-olufsen.com/company
Pia Christiansen
19
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
Furthermore, B&O has a large emphasises on technology features and innovation. On
their website they have identified eight core competences; picture, sound, user interaction, system
integration, moving mechanics, design, material and finish, and quality. In connection to these core
competences the company expresses; Our core competences are what make us strong and make us
different8 All the core competences are product related features which will be discussed further in
the analysis and discussion.
These findings will be summed up in Aaker’s brand identity system and Kapferer’s identity prism
below. These identity perspectives will be discussed and viewed further in the analysis of how
B&O’s brand identity is communicated in their BeoSound 8 commercial video.
The identity system (Aaker)9:
Core identity
Quality: Known for high quality
Performance: Technological superiority – user friendliness
Extended identity
Product scope: Audio and video equipment
Brand personality: sophisticated, elegant and classy
Logo: B&O – Bang and Olufsen – the names of the company’s founders
Organisation attributes: Strong drive for innovation
Credibility: long-lasting products
Value proposition
Functional benefits: High-quality technology products that have a nice design and are
user friendly.
Emotional benefits: Experience of superior sound and picture quality.
Self-expressive benefit: Owning B&O products identifies a person who is high-class,
sophisticated and conscious of quality and design.
8
http://www.bang-olufsen.com/picture-sound-competences
Pia Christiansen
20
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
The identity Prism:
The next chapter will look into the identity aspects accounted for above. It will focus on an analysis
of the campaign movie for the BeoSound 8 and how it communicates elements of brand identity.
Pia Christiansen
21
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
5. “Speaker docking gets serious with Bang & Olufsen”
This chapter will look in to the YouTube video for B&O’s BeoSound 810, a dock station which
works with Apple’s products such as Ipod, Ipad, Iphone etc. and as speakers to any computer with
an USB access. The product was presented by Zean Nielsen, President of Bang & Olufsen America,
Inc. in the following terms:
‘We believe BeoSound 8 will resonate with many new and existing customers due to its
many color options, versatile wall and table mounting solutions, and unrivalled sound
quality. Priced at only $999, it is not only priced competitively to other sound docks on the
market, it sets a new standard for hi-fi sound from a sound dock.’
11
(Appendix 13)
First the analysis will look into the visual elements of the movie by applying a semiotic approach to
the analysis. Furthermore, it will be discussed how the musical elements supports the images and
the creation of mood. Then the chapter will move into an analysis where the theoretical framework
provided above (cf. 2.1.1 and 2.1.2) will be applied.
The video has been posted on You Tube and on the company’s website, where it is accompanied by
a descriptive text of the product.12 This text part will only be touched upon briefly as the focus is on
the YouTube video and the text is not present on YouTube. The YouTube video is, in B&O’s press
release connected to the product, and on YouTube called “BeoSound 8 – Speaker docking gets
serious with Bang & Olufsen.”.13 The music accompanying the video has been custom made for the
movie.14
5.1 Analysis of the video
In order to understand what the video is communicating, there will be applied a semiotic approach
looking into the deeper meaning of the different visual and musical elements applied in the video.
The semiotic approach deals with the study of signs,(Barthes 1977) in this case the signs in the
visual and musical elements of the video. Shortly it can be described as an identification of different
10
The video can be found on YouTube: http://www.youtube.com/watch?v=bHnbPuLOTe8
Or at the company website: http://www.bang-olufsen.com/beosound8-press
11
http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=BO:DC&sid=aYyN6qVZMMFE
12
http://www.bang-olufsen.com/beosound8
13
http://www.bang-olufsen.com/beosound8-press
14
http://www.youtube.com/watch?v=bHnbPuLOTe8
Pia Christiansen
22
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
signs and identifying what meaning these connote. This approach fits well with the overall scientific
approach, of philosophical hermeneutics, applied in this thesis. Philosophical hermeneutics and the
hermeneutical circle are like semiotics about interpreting. In semiotics the interpretation is also
based on the interpreter’s prior knowledge. (Skinner 1986), (Barthes 1977)
This interpretation of the video has been included in order to dick deeper into the different elements
constructing the meaning of the movie and the context the product is placed in. The analysis will
provide a framework for the further analysis where the theory on brand identity, accounted for
above,(cf. 4.2) will be applied.
5.1.1 Visual and musical elements
The video is visually constructed of different shots of the product where only the background
setting changes. The product is apparent in every shot of the movie making it the main participant.
The video starts off with a black screen, after only a second two circles of light appear, like
headlights pointing directly at the viewer. (0.01)15 In front of the lights appears smoke connoting a
mysterious atmosphere which is supported by the music. A background light starts to blink
revealing a bit of the background atmosphere,(0.04) still holding the tension but building up to
something. After a few seconds the camera starts to zoom slowly in on the two light circles,
drawing it closer to the viewer. (0.05 – 0.09) All of the sudden the tension is released as the light is
turned on and the BeoSound 8 dock station is revealed with an Iphone placed in it. The music also
changes from mysterious to upbeat dance music lead by drums and guitar. (0.10) The whole
beginning connotes mystique and a build up to a revelation of something big. The light is turned on
and images of people dancing in the background appear, still with the BeoSound 8 in focus of the
shot. The light is held in black and blue colours and the light keeps blinking. These components of
people dancing and the blinking light effects in combination with the upbeat music connote a party
mood and a night club feeling. This part of the video connotes a young spirited felling where it is
about dancing and having fun. (0:10-0:23) At 0:23 the mood switches all the sudden as the
background changes into a sunset and the music calms down. This setting connotes a calmness and
beauty. The sun sets and a new night starts. (0:42) Now the background changes into an urban
setting, the music speeds up and the light starts to blink again in beat with the music. This could be
argued to connote a big city feeling with luxury, fashion and high-class. In the end the product
demonstrates the different options for using Apple’s products in connection with the dock station
15
Still pictures from the video is available in appendix 14
Pia Christiansen
23
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
and the possibility of changing the colours of the loud speakers. (0:48-1:02) At last the mood
switches back to the that of the beginning with the light turning off and light coming from the loud
speaker(1:04) Finally the name of the product “BeoSound 8” is revealed (1:08) followed by the
company name – Bang and Olufsen. (1:10).
5.2 The video and brand identity
In this part the video will be analysed with focus on how it communicates B&O brand identity by
applying the discussed theory of David Aaker and Jean-Nöel Kapferer.
5.2.1 Kapferer
The objective of this paragraph is to investigate the brand identity of B&O, communicated in the
commercial video for their BeoSound 8 presented above (cf. 5.1.1), according to the paradigm of
Kapferer (cf. 3.1).
In relation to the paradigm of Kapferer, the primary finding in the video is that there is a large focus
on the product, which, according to Kapferer, is very important in the communication of a brand.
According to Kapferer the product is the quintessence of the brand and the brand would not exist if
it were not for the product. However he also identified other important aspects in the
communication of a brand which he summed up in the identity prism. If the identity communicated
in the video is analysed according to the identity prism, it can be argued that the physical facet lays
in B&O’s design and functionality of their products. The physical facet was identified as the
backbone of the brand and is represented in all products. (Kapferer 2008) As presented in chapter 4
the physical key feature in B&O products is the design and functionality which are present in all
their products. In the video this facet is clearly communicated, as the product is the constant focus
of the video and is shown from all sides. The different possibilities in combining it with Apples
products are shown as well as the possibility for changing the colours of the loudspeakers. This
emphasises the focus of the product and its functionalities and thereby the physical facet.
The second aspect of the brand was personality which Kapferer identified as what
kind of person the brand would be if human. Based on the findings in chapter 4 it can be argued that
B&O has the personality of an innovative person with flair for aesthetics and design, a modern and
sophisticated person. In the video this personality could be argued to be communicated in context
surrounding the product. The background setting with people dancing, connoted a party and night
club setting which can be linked to the personality of a young modern person who likes to party.
Pia Christiansen
24
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
Furthermore, the urban felling connoted luxury, fashion and high-class. This communicates the
personality of a sophisticated person living in the city who likes to party, listen to music and dance.
This is not in total conjunction with the personality identified in chapter four, however, linked to the
fact that the product is trying to reach both a current and a new segment, which could be a younger
segment, this can be the reasoning for choosing to communicate a younger identity, still with the
key features such as sophistication, luxury and high-class in place.
The brand culture can be identified as B&O’s constant drive for innovation and
questioning of the ordinary as well as Danish luxury, this aspect is not communicated that clearly in
the video.
The relationship perspective was identified as exclusive, which mostly is based on
pricing as this probably will eliminate some segments, making those with B&O feeling an exclusive
relationship with the brand. Again this is not really communicated through the video – perhaps it
could be argued that the consumer fells an exclusive relationship with the product, as this is the only
main participant in the movie.
The reflection part of the brand identity communicated in the video can be seen in
terms of how the brand is trying to make the receiver reflect on how the brand portrays them. In the
video the reflection would be of sophistication and class in terms of the urban setting which fits
well with the features indentified in chapter 4. The consumer is supposed to imagine having the
product and for example holding a party.
Finally, the self-image part covered how the consumer can create an inner relationship
with themselves through the brands they use. In chapter 4 this was identified as “I am the elite”
because of the choice brand that is the elite and “I have good taste” based on the choice of a design
product. In the movie this could be argued to be communicated through the product because it
communicates design, however, this facet it is not very clearly communicated.
In order to evaluate the findings above, Kapferer’s “clues for a strong identity prism” will be
applied. First of all Kapferer argues that all the facets need to be present in order to create a strong
and successful brand identity. The success criteria were that only a few words should be connected
to each facet, the facets should not include the same words, and the words had to be strong.
(Kapferer 2008, p. 187) The findings have been summarised in the identity prism below.
Pia Christiansen
25
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
If the summarised points in the prism are viewed according to the success criteria it is possible to
establish that there are few words connected to each facet which provides a clear picture of the
company’s identity. However, some of the words in the prism overlap e.g. personality and
reflection, and this could be a critique of the brand identity. The words applied in the prism are
strong and sharp and therefore contribute to the clear communication of the brand identity.
Even though, the identity prism was not perfect, the success criteria for B&O’s brand identity,
according to Kapferer, can be identified as the brand’s close connection to the product and the
products ability to communicate key features of the brand such as, design and functionality.
Not all facets were clearly communicated in the commercial video and according to Kapferer the
brand should always speak to the consumer therefore also in a commercial video. However, as
stressed above the focus on the product is a positive thing, according to Kapferer.
5.2.2 Aaker
The analysis of the commercial video from Aaker’s perspective will be focused on how the
commercial video communicates the brand identity, based on the brand system presented in the
theoretical framework. (cf. 2.2.1)
Pia Christiansen
26
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
The brand could, according to Aaker, be communicated from four perspectives, brand as a product,
an organisation, a person and a symbol. Unlike Kapferer, the brand does not need to contain or
communicate all four of the perspectives. Instead the brand can choose to communicate only some
or one of the perspectives (Aaker 2002) Therefore it is not certain that all the perspectives will be
identified, however, those which can be identified will be elaborate.
Based on the commercial video and the findings in chapter 4, it can first of all be
identified that the brand is communicated as a product. As discussed above there is a large focus on
the product. Chapter 4 also established that B&O’s brand identity is very much communicated
through its product and the features connected to the products. So it is clear that the brand-asproduct perspective is relevant in the case of B&O. This perspective is linked to 6 sub-points, the
first is product scope, which was identified in chapter 4 as audio and video equipment. This is of
course communicated through the product which is connected to the audio scope of the brand.
Second Aaker argues that product-related attributes provide the customer with both functional and
emotional benefits, leading a bit on to the brand´s value proposition. (Aaker 2002, p. 80) In this
case the functional benefits are communicated when the use of the product is shown – how it works
with Apples products. The emotional benefits are not communicated that clearly, however, this can
be identified in the text accompanying the product. ‘Think of a room, any room. A bedroom, guest room,
or open-plan kitchen? In a summerhouse, chic apartment, or family home? Now just add BeoSound 8 to fill
up your room with Bang & Olufsen sound and style.16 Here the consumer is asked to imagine the setting
and then room filled with B&O sound and style appealing to the emotional benefits. This could be
argued to be a very important point for B&O based on the CEO’s statement; ‘(...) combining design
excellence and technology with strong emotional appeal’17 However this text is only apparent on
the company website and not on YouTube which means the emotional benefit is lost. Thirdly Aaker
presents a quality aspect of the brand-as-product, which is very relevant in B&O’s case because
quality was identified as an element in B&O’s core identity. (cf. 4.2) However the quality
perspective is not directly communicated in the video but perhaps a bit in the title connected to the
video “speaker dockings get serious with B&O” which could connote here is the entrance of the
best product – the high quality product – the serious product.
The brands organisational features are closely related to the product features in this
case and B&O could according to Aaker be argued to be a ‘Corporate brand’, (Aaker 2002, p. 116)
16
17
http://www.bang-olufsen.com/beosound8
http://www.bang-olufsen.com/company
Pia Christiansen
27
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
because it is driven by features such as innovation and quality. The brand name B&O is visible and
strongly associated with the products. However, this also creates the risk of one product not holding
up and damaging the brand. (Aaker 2002, p. 117) In the video this is communicated through the
brand name on the product and the name appearing in the end of the video leaving the receiver with
this as the last image shown.
The personality traits were discussed from Kapferer’s point of view above and the
findings will pretty much be the same according to Aaker. The brand as symbol is not so strong in
B&O’s case, they have a logo but this does not appear in the video, instead the company’s full name
appears in the end of the movie as explained above.
According to Aaker’s identity system it was possible to identify several different
perspectives, however, the strongest is the brand-as-product, supported by personality features.
Being strong on this feature was also identified as being a bit dangerous for a company as it risks
entering what Aaker calls the product fixation trap. Here he argues that:
‘A brand that relies on superior performance of a key attribute will eventually get
beaten on that attribute, even if it is continuosly improving the product, because the
attribute is a fixed target for competitors’(Aaker 2002, p. 75)
However, this will be discussed further in the next chapter, where the above chapters will be joined
in a discussion leading to a conclusion.
Pia Christiansen
28
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
6. Discussion
As stated, Bang and Olufsen is a luxury brand within the high-technology market producing and
selling luxury audio and television solutions with an emphasis on quality, design and functionality,
with prices ranging way above competitors. The analysis of B&O brand identity, and the
communication of it through the commercial video, revealed a strong focus on product features. The
identity according to Kapferer can be argued to be positive based on the identity prism and the
evaluation according to the success criteria. (cf. 5.2.1) However, Kapferer also emphasises the
product in connection to the brand. According to Aaker, it shows that the brand identity mainly can
be classified as brand-as-product. B&O’s core identity was identified to be based on three key
features quality, design and technology. (cf. 4.2) These features are all product related, furthermore,
the extended identity was also based on several product related features. It can, therefore, be argued
that B&O is in danger of entering the product-fixation trap, presented briefly above. The problem
with a brand focused on product attributes as the differentiating factor, is that it is easy for
competitors to copy products features. As stated in chapter 4 B&O is already facing increasing
competition from manufactures such as Sony, Samsung and Philips, because these have started to
emphasise sophisticated design and technology but at much lower prices. (Appendix 10) Design and
technology are some of B&O’s main competitive features, except from the lower prices. B&O also
emphasises quality, which was identified as part of their core identity, however, this is also threaten.
As, stated in the introduction the difference between ‘poor’ and ‘bad’ product alternatives have
narrowed significantly. (Nilson 2000, p. 7) However, the rapidly changing technology market where
new products are entered constantly also makes it more difficult to sell expensive but long-lasting
products (Hamann et. al. 2007) However, is the solution for B&O to lower their prices? According
to Bjoern Schwarz, chief analyst at Sydbank, B&O would lose their “raison d’etre” 18 in the luxury
market if they try to compete on lower prices.19 (Appendix 10)
However, this can lead the discussion towards the second concept presented in this thesis namely,
brand loyalty. This concept was presented from three different theoretical perspectives, Aaker,
Grönroos and Fournier. In this part it was established that it is important to create brand loyalty as it
can be expected to generate a predictable sales and profit stream and because it is cheaper for a
18
19
Raison d'etreis is French and means the ”reason for existence”
http://afp.google.com/article/ALeqM5g9hADh2f9YQ7dR0r4XAUXq71RKqg
Pia Christiansen
29
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
company to retain existing customers than to attract new ones. (Aaker 2002, p. 21) However,
another approach to brand loyalty was presented by Grönroos who linked brand loyalty to
relationship building and argued that loyalty is created through relationships. If a company
successfully establish a relationship with its customers it should, according to Grönroos, lead to
brand loyalty.
Aaker’s brand identity system should end up in a brand-customer relationship, however, he mainly
focuses on the aspects of reaching this through the core and extended identity, and the value
proposition, whereas Grönroos and Fournier focus mainly on the relationship part.
Grönroos also argued that the paradigm of traditional marketing is moving towards a more
relationship oriented paradigm. Therefore the following section will look into B&O and see if they
engage in any relationship and thereby loyalty building activities.
If B&O’s website is viewed in terms of relationship building activities, it is possible to identify
several. First of all the company has a virtual forum called the BeoLounge, which is an online club
for customers who would like to learn about B&O and meet other B&O enthusiasts.20 (Appendix
15) They also offer the possibility of subscribing to their news letter, and receive information about
new products and read interesting stories on craftsmanship and innovation.21 Such a news letter had
also been sent out in connection to the BeoSound 8 as mentioned above.22 The company is also
using the new forms of social media, in form of Facebook (appendix 16) and YouTube. Facobook
both works as a place to spread news, letting people share experiences and allows the B&O to
communicate more directly if there are questions. It is not known when these initiatives have been
established, however, the BeoLounge and the initiatives in form of social media most be pretty new.
So, B&O has also started to emphasise relationship building, and according to the above discussion
this is probably the right way to go in order to create brand loyalty and thereby also strengthen the
brand.
Fournier also presented an interesting aspect, of loyalty and relationship, as she argued that people
do not just chose brands but they chose a way of life. This can be linked to brand identity and both
Aaker and Kapferer as they both argued that the brand was a way for people to express themselves.
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http://www.beolounge.com/
http://www.bang-olufsen.com/newsletter-signup
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http://www.bangolufsen.com/beosound8?nm_extag=Referrer%3DNewsletter%2CCommunity%2CFebruary201
1%2C1 #/BeoSound%208/colours
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Pia Christiansen
30
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
This can be backed up by Hamann et. al. who has conducted a research on consumers and hightechnology products and found that people buy High-technology products mainly of prestige.
(Hamann et. al. 2007 p. 108) If this is so it makes even more important to stress these selfexpressive emotions in the construction and communication of B&O’s brand identity.
This discussion will lead to a conclusion on the thesis and the findings below.
Pia Christiansen
31
BACHELOR IN LANGUAGE AND BUSINESS COMMUNICATION
Degree in Marketing and Management Communication
05.05.2011
7 Conclusion
The objective of this thesis was to examine Bang & Olufsen’s brand identity how this was
communicated though the commercial video for their new BeoSound 8 dock station. Furthermore,
the thesis wished to look into the concept of brand loyalty in connection to the brand identity
system.
In order to do this two different theoretical frameworks of brand identity were presented and three
perspectives on brand loyalty.
The analysis based on the theoretical framework established that from the perspective of Kapferer
the brand identity could be evaluated as positive. According to Aaker there were also many good
findings. However, his paradigm his critical towards the large emphasis of the product, and the
main findings in connection to B&O was product related. The company therefore risks entering the
product-fixation trap.
The product fixation within the technology market which was identified in the introduction is also
true in the case of B&O. They are also facing increasing competition from companies which have
started to produce products with some of B&O’s main differentiating features, design and superior
technological, but at lower prices. B&O therefore needs to have something extra to offer in order to
add something competitive to their brand.
The discussion moved into the concept of brand loyalty and established that, the way to gain brand
loyalty is through building a relationship with the customers. B&O was therefore viewed in terms
of relationship initiatives. Here several initiatives were identified, and it seems that the company is
switching towards the relationship oriented paradigm Grönroos presented.
As established in the scientific approach of philosophical hermeneutics, the thesis cannot provide a
final answer, but it has created knowledge by fusing horizons of the author and the investigated
topics.
Pia Christiansen
32