In an age of social media and brand transparency, a new skill -
brand value(s) leadership - is becoming increasingly important
Brand managers cannot ignore how their brands behave in
their journeys from raw materials to final products or
services.
As brand gatekeepers, brand managers must be accountable to
deliver consistency on how the brand's promise and values are
delivered across the product lifecycle. In doing so, brand managers
will not only protect the equity of their brands but also identify
exciting product innovation and partnership opportunities that
deliver strategic differentiation and sustainable growth for the
brand.The way we live, work, shop and
influence one another has been transformed by the use of internet,
smart phones and social networks. News, including information from
those that rate and share opinions on brands, is only a click
away.
Social media boom
Social network websites account for over 22% of all time spent
on the internet, according to a 2010 Nielsen study. They provide
efficient and global platforms that shape the public's perceptions
of a brand. In some cases they can start viral communication
campaigns that can quickly build or destroy reputation.
With over 500 million Facebook active global users and 175
million registered for Twitter, brand managers cannot ignore the
fact that as they become more transparent, social media also
becomes more powerful in its ability to shape consumer perceptions
of brands.
Consumers buy a brand because they trust its performance and
they trust its values. But what happens when the trust is broken?
Transparency around the social and environmental impacts of brands
bring new challenges and responsibilities for brand managers.
Social or environmental claims made by brands and not supported
by consistent actions in the supply chain put the brand at risk of
greenwashing - potentially breaking the trust between the brand and
its stakeholders.
Kit-Kat challenge
The campaign against Kit-Kat in 2010 demonstrated what can
happen to a brand that lacks consistency between its upstream
impacts (near the product source, ie raw materials) and its
downstream communications (away from the source, closer to
end-consumers).
At the time of Greenpeace's campaign, Kit-Kat had a Fairtrade
logo on-pack. The Fairtrade label might have influenced some
consumers to think that Kit-Kat was a "good citizen" brand, at
least socially. But when Greenpeace released the news about
Kit-Kat's use of palm oil contributing to the deforestation of
Indonesian forests and extinction of orang-utans, thousands of
consumers instantly lost their trust on the brand.
Greenpeace's viral campaign demonstrated that with the help of
social networks such as Facebook, Twitter and YouTube, it has
become very easy for stakeholders to come together on a social
media platform to denounce brands' negative social and
environmental impacts.
By asking the right questions of their supply chain partners,
brand managers can turn brand risks into opportunities.
Nike's 'inspiration and innovation'
Nike is an example of a brand that has demonstrated that
positive brand value can be created when marketing connects the
dots between upstream actions with downstream brand value. The
brand's mission statement "to bring inspiration and innovation to
every athlete in the world" (where every person is considered an
athlete) is strengthened with initiatives such as the Nike Better
World Campaign.
The campaign demonstrates how the brand can use its innovation
muscle to bring inspiration and choices to athletes who are also
driven by making a positive difference in the environment. Beyond
strengthening the brand's values behind a positive message, Nike
also creates a new business opportunity with the launch of shoes
that use a new environmentally preferred rubber.
Similarly, by partnering with the Homeless World Cup, Nike is
able to reach athletes that would normally be excluded, supporting
their aspirations. This creates positive differentiation for the
brand while raising positive awareness for Nike in emerging
markets.
While brand managers are recognised in most organisations as the
gatekeepers for internal or external communications affecting their
brands, it is rare to find them spending much time looking at the
brand's actions and values through its supply chain journey.
Before the internet and social media boom, brand managers had
great control on their brand's message. But in this new age of
social media and transparency, information on a brand's actions
travel fast and brand managers must work harder to ensure
consistency of the brand's values along their supply chain.
If they don't take control for the actions of their brands
during their journeys, others in the social media space most
certainly will.
Triple bottom line value
Companies that are committed to best-in-class sustainability
look to their brand managers to build strong brands. They also need
to realise that besides recruiting and training them to grow
brands effectively using social media, brand managers also need to
develop brand value(s) leadership, which will help them effectively
drive triple bottom line value (social, environmental and economic)
for their brands.
Brand value(s) leadership provides brand managers with the tools
to ensure brands can "walk the talk". It can also be a fantastic
collaborative space for marketing and supply chain professionals to
work together to identify innovation and partnership opportunities
that can deliver both strategic and sustainable brand growth.
Companies wanting to drive strong and sustainable brand growth
can start by embedding brand value(s) leadership in their
organisations through:
- Training programmes that bring brand managers close to the
brand's products lifecycle and their triple bottom line value and
impacts.
- Joint accountability and processes to bring brand and supply
chain managers together to discuss the brand's product lifecycle
and its impacts.
- A collaborative space for brand and supply chain managers to
identify opportunities that can strengthen the brand's values
through innovation and partnerships in the supply chain.
- Revised brand planning processes which include an assessment of
the brand's value(s) performance in the supply chain and where
brand strategies and brand plans address how triple bottom line
brand value(s) can be created
- Recognition for brand managers who walk the talk, driving brand
values consistency in the supply chain and identifying innovation
and partnership opportunities that grow strong brands in an age of
transparency and social media.
Paloma Lopez has ten years of brand management and
innovation experience with leading consumer brands and is a
graduate of the Cambridge sustainability leadership postgraduate
programme. Lopez is an independent consultant helping businesses
grow behind sustainable values.