Adding Cool To Your Brand in 2005: Industry Report

Adding Cool To Your Brand in 2005

Product Type: Market Research Report
Published by: Datamonitor
Published: January 2005
Product Code: R313-8044

Description

Introduction
Consumers are becoming more image conscious and are purchasing products that support their lifestyle to provide an aspired image. A common marketing myth claims that coolness is only important in products such as clothing and shoes. However, research has shown that the influence of coolness is spreading to the CPG sector and influencing consumers purchasing habits.

Scope
A detailed analysis of how CPG products achieve a cool status within their target consumer group
In-depth primary research covering senior industry figures to uncover the latest thinking and reveal emerging unmet needs
Extensive discussion of best practice NPD and marketing campaigns that have successfully created and maintained a cool image
Practical actionable recommendations detailing how to effectively position a brand with respect to the market changes
Highlights
Coolness has been traditionally associated with fashion products such as clothing and footwear; however, products such as Innocent Smoothies have shown that coolness also influences consumers' purchasing behavior in the CPG sector. 60% of industry respondents agree it has become increasingly important for CPGs to be perceived as cool by consumers.

Coolness is a timeless need state; however, the perceptions of cool products vary by age. To develop a cool image younger consumers imitate celebrities, Young Adults and Early Midlifers purchase products perceived to be unique, stylish and innovative while older consumers purchase products that are sophisticated, high quality and authentic.

Attitude branding has become more important gained coolness as target audiences become increasingly frustrated and skeptical of the advertising claims made. 'Attitude branding' is about standing for something in consumers' eyes; it is about expressing values that are important to a consumer group, for example, Dove and the "Real Beauty" campaign.

Reasons to Purchase
Learn how to create and maintain a cool brand image in the CPG sector
Discover the latest NPD and marketing case studies to benchmark against and exploit
Understand consumers' desire for cool CPGs and how their perception of coolness varies by age

Table of Contents

TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY 3

Introduction 3

The future decoded 3

The rules of coolness vary by age 3

Three consumer groups and three levels of cool 4

Three levels of coolness 4

Action points 5

CHAPTER 2 THE FUTURE DECODED 12

Introduction 12

The importance of cool in CPG 12

Definition of coolness 12

Coolness generates added value for companies 12

Coolness is important to consumers but it varies by category 13

Factors driving the rise in cool consumerism 21

Image consciousness among consumers is increasing 21

Seniors are still concerned with coolness 22

Rise in image and attitude branding 23

Defining coolness 25

The definition of coolness 25

Benefits to consumers of purchasing a “cool” product 27

Different types of coolness 29

CPGs don’t have to be exclusive to be cool 29

Three consumer groups and levels of cool 31

Opinion Formers 31

Adopters 33

Regulars 35

Three levels of cool 36

Levels of cool relate to the consumer groups 37

Gender differences influence coolness and viral marketing 39

Men and women differ in their perception of coolness 39

Women are more likely to share opinions about products 39

Cool brands are not necessarily eternally cool 40

Conclusion 42

Three consumer groups 43

Three levels of coolness 43

Brands are not necessarily eternally cool 44

CHAPTER 3 ACTION POINTS 45

Introduction 45

Adapt the strategy to fit brand image 45

Film is a powerful medium for communications 46

Brands sponsoring events must fit with the culture 50

Target Opinion Formers using blogs 54

Use appropriate celebrity endorsements to create coolness 55

Use a limited number of exclusive distribution channels initially 59

Use links with “cool” music to develop a cool brand image 61

Unique mainstream advertising can create a cool image 62

Exclusive cool brands need to avoid becoming static 65

Companies need to continuously update to maintain coolness 65

Avoid over diversifying into unrelated areas 67

Brands need to maintain authenticity 67

Maintain brand identity by adhering to the brand heritage 67

Avoid exclusive brands becoming too mainstream 68

Introduce sub-brands to maintain a cool image 69

CHAPTER 4 APPENDIX 70

Definitions 70

Research methodology 71

References 72

Industry Sources 72

Government Sources 72

News Sources 72

How to contact experts in your industry 73

LIST OF TABLES

Table 1: Three levels of coolness 5

Table 2: Dove’s “Real Beauty” campaign adopts an anti-model policy 25

Table 3: “Are there any CPGs that have effectively created a ‘cool’ image?”, US and Europe, 2004 29

Table 4: Number of Opinion Formers over 15 years (millions) in Europe and the US, 2004 - 2009 32

Table 5: Number of Adopters over 15 years (millions) in Europe and the US, 2004 - 2009 34

Table 6: Number of Regulars over 15 years (millions) in Europe and the US, 2004 - 2009 35

Table 7: Three levels of coolness 37

Table 8: Three levels of coolness 44

Table 9: Jack Daniel’s appears in the film “Man on Fire” (2004) 48

Table 10: Product placement examples in films 49

Table 11: Spider-Man 2 featured Dr Pepper in the US and Mirinda overseas, 2004 50

Table 12: The Sprite Urban Games creates a cool image for the brand among younger consumers 52

Table 13: The Reserve Brands Group (RBG) launched by Diageo 54

Table 14: Lucozade and Pepsi use celebrities that match with the brand values to create a “cool” image 57

Table 15: Firefly herbal drinks use images to portray style and authenticity 60

Table 16: Firefly uses a contemporary web site design to emphasize the brand’s image 61

Table 17: Interbrew altered the format of its traditional drink and redesigned the beer glass 67

Table 18: Coolness definitions 70

LIST OF FIGURES

Figure 1: “How important do you believe it is for consumers to be perceived as ‘cool’ by others?” 14

Figure 2: “To what extent do you agree that it has become increasingly important for CPGs to be perceived as cool by consumers?” 15

Figure 3: “How important is it that consumers perceive a product as cool in the following drinks categories?”, US and Europe, 2004 17

Figure 4: “How important is it that consumers perceive a product as cool in the following food categories?”, US and Europe, 2004 18

Figure 5: “How important is it that consumers perceive a product as cool in the following personal care categories?”, US and Europe, 2004 19

Figure 6: “How important do you believe coolness is to the following age categories?”, US and Europe, 2004 20

Figure 7: Queer Eye for the Straight Guy: bringing metrosexuality to the mainstream 22

Figure 8: The Blackspot Sneaker company is encouraging American consumers to “rethink cool”, 2004 24

Figure 9: “Do you agree that cool CPGs need to be lifestyle supporting?”, US and Europe, 2004 26

Figure 10: The connection between the three levels of cool and the three types of consumer 38

Figure 11: Impulse used young and stylish celebrities to improve the brand’s coolness 58

Figure 12: Coca-Cola product placement in “American Idol”, 2004 64

Figure 13: Moët & Chandon continue to update their image to remain relevant and maintain a cool image 66

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