How Fortum is trying to make your houses, a little greener

Environmentalism has become increasingly important to everyday consumers, and companies try to keep up with each other as well as they can. One example of this is Fortums clean energy initiative and marketing. Nowadays every contract that an everyday customer can purchase, uses renewable energy in the form of water, wind, and solar power. They can even install solar panels onto the roof of your house!

These renewable energy sources are usually much more expensive, and now companies are investing in them more and more. Why would they purchase more expensive resources to sell with a higher price, than their competitors?

In the past decades people have become more and more aware to the global issues, and as a result,  environmentalism thrives. Working for a common cause with your customers, can also create a sense of community, and strengthen the bond that person has with you. It might be, that if a customer buys carbon free, clean energy, that person might feel that they achieved something more.

It’s called creating shared value, and it’s become the center point of brand building of corporations, since the 80’s. Creating shared value, or CSV for short, is a way of making profit as well as building the brand of corporations, with using resources to lessen, or eliminate the negative impact that, for example, a powerplant causes. This way of doing things can lead to more innovation on numerous markets, and creates jobs for countless of people. In Fortums case, one thing they planned to do is building “fishroads” for fish to swim around their water plants. Once that however failed, they didn’t give up, But proposed to give the fishes “a lift” on the back of trucks, so that they can get back home to nest.

KALAPORTAAT

 

Resources:

https://www.google.fi/search?q=kalaportaat&dcr=0&tbs=sur:fc&tbm=isch&source=lnt&sa=X&ved=0ahUKEwjfiMv5wZDXAhUnQZoKHQmDAxgQpwUIHA&biw=1280&bih=615&dpr=1.5#imgrc=i9jmJs2c1IV15M:

https://ncg.org/sites/default/files/resources/HarvardBusinessReview_Creating_Shared_Value.pdf

https://www.fortum.com/countries/fi/sahko/sahkon-alkupera/pages/default.aspx

https://yle.fi/uutiset/3-7515693

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Rebrand

Companies will at some point come to face the phase of “rebranding”, for some it happens in early stages and a while for others. Branding has changed over time, decades ago branding was described as name, slogan, sign, symbol or design, whereas today it a bit more complex. Digitalization has changed everything and we live in an age of information. Our attention spans are now incredibly short as we have become increasingly impatient.

Rebranding is an opportunity for brands to create some change to differentiate in the minds of consumer, stakeholders.

Importance of Rebranding

Before a company decides to take the risk of rebranding, it is crucial to go through reasons to do so, such as if the target audience is changing then it is beneficial.  One of the main reasons behind branding is the change in audience specially in this fast-moving era.  The other reason to rebrand is because of competition, if other companies are evolving or innovating it forces you to do same, in order to provide similar or better services.

Here are some question that you should ask yourself before rebranding:

  1. Why are we doing a rebrand?
  2. What problem are we attempting to solve?
  3. Has there been a change in the competitive landscape that is impacting our growth potential?
  4. Has our customer profile changed?

Thinking of rebranding but wait!

There are terrible ways to rebrand ad there are good ways!

Screen Shot 2017-10-26 at 11.13.17.png

Pepsi changed its logo and the new logo is quite similar to the old and is not bad but its cost them millions to do so and was it worth it? So it is crucial to ask yourself why do you need to rebound and is the change necessary.

Screen Shot 2017-10-26 at 11.54.47

Gap spent millions to change their logo, but it ended up being disastrous and they had to change it back to the old one.

mcdonalds1.jpg

Mc Donald’s was being criticised for being cheap and unhealthy. Mc Donald has since been trying to rebrand itself as a more health conscious with a greater variety of salads.  The campaign was successful, and Mc Donald’s Corp reported up to 5.3 percent rise.

 

Sources

https://www.thebalance.com/why-is-branding-important-when-it-comes-to-your-marketing-2294845

https://creativemarket.com/blog/20-rebranding-disasters-you-can-learn-from

https://www.entrepreneur.com/article/237296

http://www.risingabovethenoise.com/how-to-rebrand-19-questions-ask-before-you-start/

 

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Minuscule OnePlus Challenges “The Giants”

I am sure that many of you have already heard of the brand OnePlus. If not, then you will probably get to know it in a couple of years, you might even own their product by then. OnePlus is a Chinese smartphone manufacturer which was founded by Pete Lau and Carl Pei in December 2013. They released their first smartphone on 23 April 2014, called OnePlus One “Flagship Killer“. OnePlus One had comparable, and in some ways better, specifications to other flagship phones of the year, while being sold at a significantly lower price at $299. “Like an iPhone but cheaper” is used to refer to OnePlus’s positioning.

OnePlus_one_preorders_00_tech2

OnePlus as a company is only 4 years old but has already challenged “The GiantsSamsung and Apple. Apple and Samsung both own a huge part of the Worldwide Smartphone Sales. Their combined market share is 34,4% of the entire smartphone market (Samsung 20,7% & Apple 13,7%. 1Q2017). Both of these “Giants” have lost market share in the first quarter of the year as Chinese brands have continued to increase their sales. In 1Q2016, Samsung’s market share was 23,3% and Apple’s was 14,8%.

gartner

So how can a young company challenge the old giants? It is simple. Make the best product. Concentrate on the essentials. Give consumers the best they can have for a price what they can pay.

Carl Pei“You can see the world’s largest booths, but the Android manufacturers are more concerned with marketing than making the best product. We’re not spending that much on marketing or on our channel costs because in the end, consumers have to foot the bill”, says Carl Pei at Mobile World Congress in Barcelona 2nd of March 2016.

How did OnePlus build their brand so fast? There are many reasons like for example price or specs but I think that biggest reason for their brand growth was “Word-of-mouth marketing”. Their most notable marketing tactic was to begin only selling its smartphones to customers who received an invite from the company, granting them permission to buy. Invites were handed out through various promotions and competitions. OnePlus owners also could share invites to their friends. This strategy has earned OnePlus a cachet among tech enthusiasts, enabling it to build a community of committed customers that generate online excitement about the brand and its products. (AIDA-model) OnePlus sold 1,5 million smartphones globally in its first year.

oneplus-invitesAn invite-only system builds exclusivity and demand.

By limiting the demand for smartphones, the company is able to keep track of its inventory levels and avoid over-investing in products that it cannot later sell. This sets OnePlus apart from many of the big smartphone makers that invest millions in marketing to compensate for mediocre, mass-produced products.

oneplus-cofounder-carl-pei“Marketing amplifies the product, but it cannot be the substitute for an inferior product”, says Pei. “Everyone can make a good product, but a lot of brands are stuck in their old business models. Our small scale and relatively young age is an advantage that allows us to focus on our core business model”. 

OnePlus’s business model is:

1. Low made in China unit costs

2. Aggressive, invite based, just in time manufacturing

3. Minimised working capital, notably inventory dollars and inventory risk

4. Asset turns focused financial model

5. Direct sales and distribution

6. Higher margin accessory and app bundling

7. Viral marketingone-plus-one-advertisement-campaign-never-settle-600x359Attract attention by picking up a fight with an established competitor

“Fame and profits alone seldom equal respect. Respect comes from doing right things the right way and building something that matters. We are dreamers who always reach for the most ambitious goals. We are enthusiasts who love what we do. Most importantly, we Never Settle“, OnePlus

I think that in 5 to 10 years, there will be only Apple, Samsung and OnePlus competing in smartphone industry. What do you think? Do they prevail or come crashing down? Share your thoughts in comment section.

 

References:

https://oneplus.net/about-us

https://www.marketingweek.com/2016/03/02/how-oneplus-is-taking-on-the-mobile-giants/

https://www.referralcandy.com/blog/oneplus-word-of-mouth-marketing/

https://www.quora.com/How-does-the-OnePlus-One-business-model-work

https://www.forbes.com/sites/jaysondemers/2013/08/05/how-to-use-the-aida-formula-to-boost-your-content-marketing-strategy/#12409f61358a

https://9to5mac.com/2017/05/23/iphone-market-share-gartner-q1-2017/

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Golf Course Branding in Golf Business

golf

Golf business is business where customer satisfaction is everything. When customer is selecting course to play he often wants to excperience something new but also wants to be warmly welcomed and properly served. Good service leads to happy excperience and that way customer gets feeling that the course might be the one to play regularly in the future.

In golf business brand depends also condition of the product. This case the product is the course. Course must be in mint condition trough summer that customer will come again and again. So to say branding in golf business is different than other businesses.

Kevin Lane Keller writes in his article Building Customer-Based Brand equity: A Blueprint for Creating Strong Brands that brand builds from four fundamental questions. These questions are: Who are you? What are you? What about you? and What about you and me?

When customer first time sees golf course he instantly thinks golf. The association is already in the name of the course. So different from brands that does not include product in the name for example Pepsi, golf brands usually do. How golf courses builds their brand is directly linking to question what about you. It is all about how golf course performs and how they make customer feel. In key position is condition of the product and quality of the service. These two things builds brand most in golf business.

golf rainbow

Customers in golf business are highly judgemental. If they are not satisfied to course condition or service they first vote with theri feet and never come again and second (which is the worst part) tells about bad service and poor course condition to everyone they play with. Golf is social game and people tend to share their excperiences at the golf course.

In the golf business brand building is all about the performance. Through good performance in service and having great product any golf course can build brand. And the best side is that customers build course brand for you.

References:

http://www.academia.edu/download/40863813/CustomerBasedbrandEquityModel.pdf

 

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Building brand in social media

One of the many models used in advertising is the DAGMAR -model.  The consumer goes through four steps:

  1. Awareness
  2. Comprehension
  3. Conviction
  4. Action

Consumers need to be aware of the produt or service before the purchase desicion can be made. It’s not enough though: knowledge about the product is also important. The next step is to convince the consumers that the offered product is the superior choice. The last step is the action. That means that the advertiser has to encourage consumers to actually buy the product.

Marketing communication has a great impact on creating companys image, information on products and prices and in the end: making people buy the products over and over again. Building a brand through marketing communication needs to be coherent and continuous.

In my example case brand building is made through marketing communication in social media. Jounin Kauppa is a grocery store in Lappland and the entrepreneur is one of the most famous store owners in Finland. The store is located in a small town of Kolari with population of only under 4000.

Almost the whole marketing strategy is basically built around the entrepreneurs character, and he does the marketing on Facebook and other social media. On Facebook only the store has more than 578 000 likes. The idea is to do a lot of competitions and raffles, and has been sort of a phenomenon in social media.

People are known to actually travel 1000 kilometers from Southern Finland just to visit the store. The motivation for this kind of behavior roots from the companys posts on the social media. Since 2013 their marketing budget is only 70 000 euros carried over three years, which is relatively small sum compared to the turnover which was 10,3 million euros in 2016.

Do you think this kind of brand building will be more popular in the future? Could even the bigger companies use this kind of strategy as well?

 

References:

http://www.drypen.in/advertising/dagmar-defining-advertising-goals-for-measured-advertising-results.html

https://www.kauppalehti.fi/uutiset/jounin-kaupan-sampo-kaulanen-rupesi-koko-kansan-maskotiksi—hintana-somekohut-ja-tappouhkaukset/5Y7w95Ax

Bergström, Seija & Leppänen, Arja 2011. Yrityksen asiakasmarkkinointi. Edita Publishing Oy, Helsinki.

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