Experience Counts- Pool Winter 2005

Editor's comment: Martin Payne of Through the Loop and Ross Urquhart of RPM take a look at the meaning of Brand Experience to identify its true meaning and the factors that are driving its development.

Brand Experience appears to be one of marketing’s latest buzz phrases. As companies look for new ways to communicate their brands, Brand Experience is frequently mentioned as a possible solution and way forward. A need or desire to build experiential elements into the brand communications, indeed into the whole brand proposition, results from a number of crucial factors. Taken together, these mean that the marketer has to find new ways to connect with the target audience.

These factors are widely seen to include the following.

Traditional channels of marketing communications are seen to be less effective. This results from issues such as media fragmentation, ease of changing channels, “zapping”, etc.
Furthermore, the sheer volume of marketing communications means a lot of noise but very little opportunity for a message to reach its target.
Some traditional media channels have become increasingly expensive without a corresponding rise in perceived effectiveness.
Consumers have become more sophisticated. They are often tuning out of marketing communications.

Through the Loop analysed the subject of Brand Experience some time ago (Are You Experienced - Pool, Autumn 1999) and came to a number of conclusions. It seemed that one of the key issues was that Brand Experience could not be treated as additional marketing communications channel like advertising, field marketing or direct marketing. Brand Experience appeared to exist on a number of levels, indeed it was about how the brand was experienced across all the consumer touchpoints. This about moving beyond what we can call traditional branding to enable the consumer to become immersed in the brand and, therefore, develop a stronger association or relationship. Consumers start to live the brand. This is increasingly important as markets have become more competitive but products, services and brands have become more similar. Genuine and sustained differentiation is one of the keys to success today and tomorrow. Associating products and services with traditional brand image attributes is no longer sufficient. Even brand imagery has become generic in many cases, reducing the effective of this as a differentiator. Just think how often a product shots could be interchanged in some advertising, for example, with the consumer none-the-wiser.

Consequently, the development of Brand Experience can be viewed as the next logical step for branding. It provides the additional attributes and consumer engagement that enable a brand to stand out in a crowded market-place where differentiation is the key to success.

RPM and Through the Loop have been working together to develop a greater understanding of the Brand Experience subject. We felt that Brand Experience was gaining a higher profile without any real understanding of what it actually means. A browse through the literature available provides some possible answers but nothing that could be said to be definitive or encompassing all the issues involved. If Brand Experience is indeed the way forward then we would have to know more about what it is. Through this approach we hope to develop a logical way forward for marketers who are looking at Brand Experience as the next step for their brands.

In order to establish this route map for Brand Experience, we can use our recent research amongst UK client marketers to understand more about what Brand Experience actually is. This enables us to identify a series of issues that marketers should take into account when developing Brand Experience. First, it was necessary to define what Brand Experience is.

Providing the definition

Our research indicated that there are a number of elements that are important in defining Brand Experience.

Up close and personal.
Connecting consumers and brands.
Enabling brands to achieve sustained differentiation.
The ability to communicate in both directions.
A more holistic approach to the brand, making it personally relevant to consumers.
Ensure consumer loyalty.

One of the most interesting descriptions we heard was from Catherine Herbert of Martini who sees Brand Experience as 3D advertising developed in a way that includes the customer. The more inclusive and all-round approach to the brand could also be viewed as a 360º view of the brand, making every aspect of the brand count and making it relevant.

The closeness to consumers was noted by a major media company that said it was looking to reach out to its audience through interactive programming and phone polls. The audience ceases to be passive and is actively included in the programming, if they wish. One way in which the media environment is moving forward is the development of events, around which programming can be developed for different media channels.

The respondents were given five statements and asked to rank them in terms of their relevance to Brand Experience.

Which phrase best fits your understanding of Brand Experience?

(Ranking 5-best fit, 1-worst fit)

Definition	Rating
Brand Experience is a way of connecting brands and people using emotional and/or sensory triggers	3.8
Brand Experience is any form of interactive communication between brands and consumers	3.5
Brand Experience is a live face-to-face representation of the brand	2.9
Brand Experience is a way of conducting genuine dialogue with consumers	2.6
Brand Experience is a form of customer relationship management	2.5

Source: RPM / Through the Loop

From this, we were able to develop a definition of Brand Experience. The definition reflects the complexity of the subject but we suggest it is as follows:

Brand Experience is a discipline that provides sustained brand differentiation by connecting brands and people on a personal or face-to-face level through two-way communications in a controlled environment to help secure consumer loyalty.

This definition and the factors covered by it form the blueprint for developing Brand Experience. These can now be analysed in more detail.

Securing brand differentiation

Brand Experience is a positive approach more than a reaction to dissatisfaction with traditional communications channels in terms of cost or effectiveness. However, the problems experienced with existing channels were ranked nonetheless as important factors driving the increased adoption of Brand Experience.

The key driving factors, those receiving a higher weighting from respondents were:

Desire for sustainable brand differentiation
Need to bring the brand and the consumer closer together
Need to integrate with consumers’ lifestyles

These three top factors illustrate the fact that marketers are looking to become closer to consumers as a means of achieving genuine and sustained differentiation for their brands. Securing consumer loyalty has become more and more difficult in an era of hyper-competition and so-called “promiscuous” consumers. Furthermore, it is relatively easy for competitors to develop me-too products and services, often rendering new product development or innovation ineffective after just a short time. The answer is becoming closer, engaging brands in their lives and adding value. The brand becomes more “relevant” to the consumer. This is very difficult for a competitor to copy. This closeness helps to provide the differentiation and secure a higher level of loyalty. A natural follow-on from this is that it helps to secure premium pricing, higher margins and repeat purchase. Brand Experience is the new approach to brand marketing that can help to deliver and secure this differentiation.

What do you believe is driving the growth of Brand Experience?

(Ranking 5-highly important, 1-not very important)

Factor	Ranking
Desire for sustainable brand differentiation	4.5
Need to bring the brand and the consumer closer together	4.3
Need to integrate with consumers’ lifestyles	4.0
Desire for genuine dialogue with consumers	3.8
Consumer demand for more entertaining marketing solutions	3.8
Consumer demand for more relevant marketing solutions	3.7
Accountability of Brand Experience as a marketing technique	3.7
Consumer mistrust of spin and advertising	3.6
Ineffectiveness of traditional marketing communications	3.3
High cost of traditional marketing communications	3.3

Source: RPM / Through the Loop

Multiple objectives and multiple techniques

Unlike traditional marketing communications Brand Experience can, and possibly should, have multiple objectives. The fact that it is seen as a multi-faceted discipline means that a single Brand Experience campaign can achieve a number of things for the marketer. For example, a live event at the heart of Brand Experience enables consumers to try the product, consumer data can be collected through competitions allowing future direct marketing and the event also acts as a public relations exercise. The latter can act to generate media coverage of the event thereby multiplying the impact of the Brand Experience campaign. All of this happens at the same time that the brand’s image and attributes are being positively enhanced, perceptions are being changed and new consumers are being recruited. Quite an achievement.

Are there different marketing objectives to which Brand Experience is best suited?

(Ranking 5-best fit, 1-worst fit)

Marketing objective	Ranking
Strengthening loyalty	4.5
Building awareness	4.3
Changing perceptions	4.3
Enhancing credibility	4.3
Driving sales	4.0

Source: RPM / Through the Loop

Consequently, the development of Brand Experience should look to achieve multiple objectives. This requires the use of a series of different marketing tools and techniques. We are not talking about a replacement for traditional media communications channels but our research suggests that Brand Experience campaigns tend to use a mix of communications channels, each channel adding a separate element of the “experience.” These comprise both traditional and new channels of communication. For example, live events or field marketing provide an opportunity to become physically close to the consumer, enabling product sampling and data gathering. In such as case, advertising such as television or press acts as a support medium, helping to generate awareness and interest. Public relations activity can be used to leverage the event to gain additional media coverage.

HP Bulmer has been developing Brand Experience around its Strongbow cider brand. Brand manager Philip Pick told us that the environment helps to build credibility and the brand can be built within this. Furthermore, he stated, the objective can evolve with the level of Brand Experience. In the case of Strongbow this has meant moving from recruiting new drinkers to looking to encourage existing drinkers to choose it more often.

This means that the communications channels can work in a number of ways as a part of Brand Experience. Some of these channels allow genuine dialogue with consumers while others retain their “broadcast” role.

The research showed us that all the communications channels noted were seen to be important in the area of Brand Experience. Indeed, this reinforces the fact that every consumer touchpoint, every interaction with the consumer contributes to the Brand Experience. It is about how the consumer experiences the brand. Will Pugh, Marketing Director of Passion for Life, noted that Brand Experience is a principle rather than a self-standing tool.

A respondent from a major automotive manufacturer emphasised the way in which PR can be leveraged around motor shows and other event marketing. The same company organises events for its owners so that the brands can be brought closer to the drivers’ lifestyles.

Which marketing techniques do you see as most effective for executing Brand Experience?

(Ranking 5-highly important, 1-not very important)

Marketing technique	Ranking
Product trial	4.1
Design	4.0
Retail/point-of-purchase	4.0
Above-the-line advertising	3.7
Live events	3.7
Public relations	3.7
Direct marketing	3.6
Sponsorship	3.5
On-line marketing	3.3
Exhibitions	3.3

Source: RPM / Through the Loop

Furthermore, Brand Experience is not the preserve of the marketing department. The very fact that it covers every consumer touchpoint highlights the importance of internal marketing to educate the whole company in the brand. Simon Davies of the accountancy company Haslers stated that everyone at the company is encouraged to enhance the brand. Clearly, in order to develop effective Brand Experience, everyone most be fully on-board. A single touchpoint, not necessarily a piece of defined marketing communications, has the potential to undermine all the other areas of consumer contact.

Identifying appropriate brands

We were interested if Brand Experience would only be applied to new brands as part of the “design” of the brand or whether it would be equally appropriate for existing brands. The answer that it works for both. Strongbow and Martini are well-known brands that now have substantial experiential elements as part of their marketing mix. In both cases, the brands are now able to get much closer to their consumers. Brand Experience can also be used to add new elements or to update the brand. A company like Unilever has been using Brand Experience for its Wall’s ice cream and Pot Noodle brands, again established brands.

For existing brands the development of Brand Experience may look to encourage consumers to reappraise the brand. Martini is a good example here as Brand Experience can be used to introduce new consumers to the brand in appropriate surroundings. It is also possible to target existing consumers by showing new ways in which the product can be enjoyed.

For a new brand the Brand Experience is the consumer’s total relationship with the brand, whatever stage the brand is in its life cycle. As a discipline, Brand Experience seeks to take greater control of this relationship through all appropriate communications channels to provide differentiation, engagement and dialogue opportunities. By the way, dialogue refers to listening to consumers not broadcasting to them. The experiential elements thus become a part of the product offering, not just a form of communications. Examples of where this is evident include Red Bull and EasyJet.

Further to this, Brand Experience is seen to be appropriate for consumer and business-to-business marketing. In the latter case the nature of personal relationships make Brand Experience highly important. Simon Davies of Haslers noted that the company undertakes seminars for clients and these help to define the brand around the content of the seminar.

Final thoughts

In short, Brand Experience is more than a discipline. It is a mind-set that can be applied to a variety of marketing issues. It represents a way forward for marketers to develop genuine and sustained differentiation for their brands at a time when it has become all too easy to develop me-too products and services.

In order to develop Brand Experience most effectively, marketers have to adhere to the rules that we have identified. These can be summarised as follows:

Build Brand Experience for the right reasons. Use it to engage consumers in a genuine two-way relationship to secure sustained differentiation.
Brand Experience is not an additional marketing communications medium. It is a mind-set, a way of thinking about the brand.
Be prepared to set multiple objectives for the programme.
Use different media channels to leverage Brand Experience to its maximum effect.
Act on the feedback received from consumers.