The benefits of going green for a business

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As awareness of the importance of the preservation of the environment continues to grow, since many years, companies are looking for ways to become environmentally friendly, also known as “going green.” Not only can green business practices and processes help protect the environment, they may also help a company improve its business by different aspect:

 

1/Public Relations

Companies which can understand the fact that to be environmentally friendly can gain the appreciation of the consumers. Make a business go green can be a part of the marketing campaign by mentioning the green changes the company have made, such as using recycled products or changing the manufacturing processes to ones that are safer for the environment. Also, we can donate money to causes that benefit the environment.

 

2/Cost Savingstéléchargement (1)

Companies that focus on reducing energy consumption not only help the environment, but also reduce their costs in the form of lower energy bills. According to MSNBC.com, chemical manufacturer DuPont saved over $3 billion over two decades by reducing carbon emissions. Smaller businesses can also benefit from reduced energy costs by taking simple steps like shutting off lights and computers when they’re not in use.

 

3/Healthier Workplace

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According to the Green Business Bureau website, companies that promote a healthier workplace report a 20 percent decrease in the number of sick days used by employees. This benefits companies through increased productivity and less money paid out in medical benefits. A healthy workplace can feature organic food selections in the company cafeteria or the use of environmentally friendly industrial and cleaning products.

 

4/Tax Credits                                         

                           images

The 2009 French economic stimulus plan provided incentives for companies to go green in the form of tax credits, which can increase their bottom lines. Tax credits are available to companies that utilize environmentally friendly business practices, such as switching to renewable energy sources like solar power, and using electric or hybrid automobiles and trucks as fleet vehicles.

 

5/Consumer Demand

As environmental consciousness grows, consumers are demanding more green products and services, according to the Green Business Bureau website. Environmentally conscious consumers check labels for products and packaging made from recycled materials. Due to this growing consciousness, the market share for green products has continued to expand in a variety of industries. Companies can tap into this market by offering more green products and services.

 

Feel free to comment and give your opinion

 

Resources:

 

  • greenconsultants.com (2018). Benefits of Green Business. Available at:

http://www.greenconsultants.com/why-green.php

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Influencers Marketing, a New Way to Promote Your Brand

A New Way of Promoting

The promotion of the brand on the social networks (youtube – instagram – snapchat) and on the blogs evolved these last years. Some companies use influencers to speak about their products or their services. We speak then about marketing of influence, or about strategy influencers. But what is a product placement and is this new way safe for companies?

During the last two years, the importance of the strategies of influence increased in an exponential way, notably because of the increasing number of users on social networks. The brands knew how to benefit from the popularity of the most influential accounts on these platforms, those whom we name “influencers”, because according to the Nielsen poll, 85 % of the consumers assert making their decision having consulted the opinion and the articles of these new opinion leaders.

The brand image does not depend anymore exclusively on messages emitted by the company or on its advertising campaigns. Indeed, the consumers contribute themselves to create this identity, thanks to their own experience. The marketing of influence turns out advantageous in this sense. The image that the consumer gets depends a lot on the opinion leaders, thanks to the promotional events, and posts on social networks.


placement produit kim kardashian

Screenshot from Kim Kardashian’s Instagram account, advertising a brand of hair care.

Why Does it Work?

The products placements are the new way of promoting products and brands, and it works! Indeed, Millenials (this generation of teenagers born in the late 90s) are more on the social networks than in front of television, and the brands understood well it. Furthermore, users follow people they like, people that inspire them and are like a model, and people they can identify to. Therefore, if a personality posts a photo on Instagram with a product by recommending it, its followers are going to build trust in the influencer and in the product.

But there are also some risks: the brands have to choose well the influencers with which they work. Some influencers have bad public images or images that do not correspond to the brand image the company wants to build. The choice of influencer is important because it is this public image that will also matchs with the brand image.

Sources:

http://www.commentcamarche.com/faq/47749-faire-appel-aux-influenceurs-pour-son-entreprise-ou-sa-marque

http://www.nielsen.com/us/en/press-room/2012/nielsen-global-consumers-trust-in-earned-advertising-grows.html

https://www.launchmetrics.com/fr/ressources/blog/prets-produits-influenceurs

 

 

 

 

 

 

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Red Bull gives you Wings

Founded just 30 years ago, an energy drink sold by an Austrian company- Red Bull has the highest market shares of any energy drink in the world. A pioneer in energy drinks and also the world sales leader, Red Bull does have unique approaches to brand building.

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Red Bull Energy Drink – business logo

How “Red Bull gives you wings”?

The scope of Red Bull brand activities is overwhelming. There are some well-known strategies behind Red Bull’s success including its involvement with extreme sports such as hand gliding and bungee jumping and its participation in the F1 circuit through its eponymous team. The adventurous spirit is a reflection of Red Bull’s freewheeling corporate culture that has enabled the company to build an enviable performance record over the last 30 years.

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Red Bull Formula 1 Team

“By building a significant brand, Red Bull believes in owning teams and events rather than being one of several sponsors.”

Instead of subscribing to the normal sponsorship model where they would have their brand attached to an entity they do not control, Red Bull believes in owning teams and events so that they have control over the content and the cost.

Building the brand wings

Another one of the spectacular branding records of Red Bull is the “world’s biggest jump”. In mid-October 2012, over 10 million people in the world watched Felix Baumgartner, an Austrian “daredevil” skydiver, raised 39 kilometres above the New Mexico Dessert in an ultra-thin helium “Red Bull Stratos” balloon, jumped off and had the highest ever free-fall parachute jump of the world record. This video has been recorded in social media. As of today, it has been watched over 43 million and creating an incredible return of investment that might have exceeded $45 million. Now we are clear to see how a brand creates benefits right?

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Austrian daredevil- Felix Baumgartner, jumped off from the Red Bull Stratos balloon, above the Earth.

We know all of the brand activities of Red Bull are around high energy, there are two brand personalities that line side-by-side. One is the serious athlete excelling in high risk adventures,and the other one which is a fun-loving and humorous personality as represented by much of their slogan advertising in hand drawn cartoons videos.

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Red Bull gives you wings – hand-drawn cartoon of TV advertisement

“Different brand personalities, different ability of attractive.”

To conclude the success strategy of Red Bull from extreme sports to brand loyalty, consider these three concepts:

  • Consumer engagement through sportsmanship
  • Viral videos depicting feats of athleticism and bravery
  • Brand recognition through remarkable slogan

References:

  1. http://www.millwardbrown.com/global-navigation/blogs/post/mb-blog/2007/06/13/The-Red-Bull-case-study-branding-not-marketing.aspx
  2. https://www.forbes.com/sites/forbesasia/2013/06/24/the-wind-behind-red-bulls-wings/#7cf7a9587b79
  3. https://en.wikipedia.org/wiki/Red_Bull

 

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Does counterfeiting damage the image of a luxury brand ?

Counterfeiting is the fact to identically  replicate a product. Counterfeiting is nowadays not only a fact but a real phenomenon which is constantly increasing. It concerns every industry: food, toys, technology, cars, cosmetics, fashion and even drugs. Regardless of the sector, counterfeiting is always considered as a serious infringement of the intellectual property right.

Fake Rubber Stamp

Counterfeiting has a huge impact both on the consumers and the States but the biggest impact of counterfeiting is on companies.  In fact, counterfeits generate a decrease in market share for companies, they seem to lose all of the benefits they would have been able to make thanks to their investment efforts.

In a lot of various countries, counterfeiting as well as buying counterfeit products is considered as a customs offence which may cause penal and/or financial penalty. However, despite the involvement of the custom services, counterfeiting still represent between 5 and 10% of international trade and the total annual turnover is estimated at about $500 billion, $500 billion of which more than a third is generated by the sale of fake luxury goods.

  • But why do consumers buy counterfeits?

The answer seems to be pretty easy: consumers buy counterfeit products in order to obtain the status which is associated with the brand and the product without needing to pay the price for it. A counterfeits is the cheapest way to buy “branded” products.

marques

  • Why is the brand image so important for luxury brands?

The success of a brand in the luxury industry is based on the products, creative and good quality products, but also on the image of brand. This is such an important thing because it gives credibility to the brand. That is why luxury brands separate their time and money between the production and the brand management.

  • So, don’t counterfeits have a negative impact on the image of these brands?

Some say yes, other one say no, but there is not one scientific answer to that question. According to Grossman and Shapiro counterfeits would have a negative impact on consumer ‘s trust towards the legitimate products and so a negative impact on the brand image. Most of luxury brands such as Hermès, Chanel, Dior etc. agree with that fact and try to fight actively against counterfeits by taking part into a committee for example. However, even if most of them take part into a committee and want to fight actively not all the brands agree with the fact that counterfeiting has a negative impact on the image of the brand. Some of them, such as Patrizio Bertelli, the CEO of Prada, believe that counterfeiting has a positive impact on the image of a brand because it represents a proof of the success of the brand. If a brand is copied it means that people like the brand, the products and so is making the brand even more stronger. Counterfeits could be considered as a tribute, but a perverse tribute.

fakewatches

 

References:

Grossman, G.M., Shapiro, C., « Counterfeit-Product Trade ». American Economic Review

« La contrefaçon nuit-elle à l’image d’une marque ?», Le Monde

F. Kremer, C. Viot, A. Le Roux, I. Poncin Reflet et perspective de la vie économique

F. Godart, Sociologie de la mode

www. Comitecolbert.com

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Starbucks, the international local café

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Don’t you dare tell me you’ve never tried a Starbucks coffee before, I know you have! Have you ever wondered why it has such a huge success internationally? Well, it has developed a strong brand building process to reach a strong brand image recognisable by everybody all around the world.

Let’s start by the beginning, what is brand building? According to the Cambridge Dictionary, it is the process by which a company creates or improves customers’ knowledge and opinions of a brand. Since its creation in the early 1990’s, Starbucks has developed a strong brand identity by different means.
First of all, Starbucks went out of the box with a different way of conducting marketing research to understand consumers’ needs. Instead of using common surveys to get people’s opinion, Starbucks decided to use informal chats with consumers to gather more valuable feedback and to create a relation with its consumers. Moreover, the company managed to get customers focus more on the quality of their experience than on its cost.

But what really built the success of the brand is its brand strategy to make people feel like they are having coffee in a local store. The design of the Starbucks shops doesn’t make them look like they’re part of a huge company. The objective of the brand was to create cafés that would fit every culture by changing some store elements according to the country they are situated in but still providing the same unforgettable experience by staying true to Starbucks’ values. For example, in Shanghai, Starbucks opened the Starbucks Reserve Roastery, following the wants of Chinese consumers. The outside reflects the culture of the country and the inside provides a unique experience of the journey of coffee from its cultivation until the moment it is served into a cup.

shanghai  Starbucks China.jpg                                                    World’s largest Starbucks in Shanghai    

How did Starbucks manage to stay successful?

If you want to travel the years without being surpassed, the key word is: adaptation. The brand has a strong presence on social media and had developed a website called mystarbucksidea.com where consumers can express their ideas for improvement of products or of the overall experience. This creates a community among Starbucks’ consumers, reinforcing the identity of the brand. Moreover, it is an ethical company, trying to act for the environment by supporting forest conservation programs and farmer loans and trying to reduce its ecological footprint.

starbucks-idea-1-e1520177611839.png starbucks-idea-2-e1520177655556.png

So, Starbucks has managed to develop its own brand identity through brand building, especially with the design of its stores, made for people to feel at ease, in a relaxing environment, respecting their culture and values as well as the ones of the brand. However, the expansion of Starbucks into new markets increases its number of competitors. In the future, the brand will have to be more innovative and competitive than ever to stay the coffee house leader.

What do you think Starbucks needs to improve to keep its leader position in the future?

Sources:

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