The case of Ingredient Branding
Lorenza Bassetti - Managing Director AD MIRABILIA Srl
In the current era of globalization and ever-increasing levels of mass production, saturation has affected all market segments, creating a growing need for communication strategies capable of differentiating brands from their competitors.
Today, against this backdrop, highlighting products’ high quality core components takes on new meaning in communication terms, allowing companies to differentiate themselves in a world where consumers have become more and more demanding about the products they buy.
Since the 1990s, ingredient branding has established itself as a common marketing strategy, involving many market sectors, from clothing (textile and fibres), to IT and high tech, optics (lenses), food and beverage (functional food) and the automotive industry.
Today, promoting ingredient branding strategies has become a new challenge for PR professionals, which need to focus on both suppliers’ and manufacturers’ benefits accrued through using modern and up-to-date communication tools.
Marketers talk about ingredient branding as a win-win situation, a marriage of convenience where both parties gain profit, both in terms of image enhancement and improvements in economic efficiency, because often the supplier and the manufacturer share production, promotion, advertising and distribution costs.
Savvy manufacturers of raw materials have leveraged ingredient branding strategies for many years, succeeding in enhancing their image by giving products quality assurance and added value; as well as becoming a crucial ‘plus’ and an advantage, in promotional terms.
How does an ingredient become a brand? By establishing successful communication strategies that involve more than just putting a logo on the front of the end product, but talking directly to consumers, educating potential buyers on the benefit of purchasing a product with added credibility. Only educated costumers will be able to see the differences that the ingredient component will make in a product.
At one end, producers of raw ingredients benefit from the association with high profile, niche products by gaining wider visibility; at the other, suppliers improve credibility and boost differentiation by giving their product a distinct characteristic that is difficult for competitors to imitate.
Research, technological advancement and changing perceptions from a single product to innovative solutions are all key- aspects that need to be highlighted when communicating about an ingredient brand, concepts that become tangible and more easily perceivable by consumers if associated with an end product
In a world invaded by millions of products of questionable quality, consumers are willing to pay more for something they can trust - as expressed by the concept of ‘winning for paying’ - making this type of communication strategy advantageous in a commercial sense as well as justifying the high-end market positioning to consumers.
Maintaining the fine equilibrium of this winning combination is the task of PR professionals who need to find new solutions and identify new potential co-branding activities continuously, with the distinct advantage of having the chance to broaden their own opportunities by establishing new business relationships.
Employer branding – how to create an employer’s image?
Katarzyna Rek – Manager, Employer Branding practice leader, On Board Public Relations
Improving business development, strengthening competitive advantage, loyalty and building trust among employees, business partners and clients: these are all key objectives of an increasing number of Polish companies. But achieving these objectives is often connected with one critical component – a company’s reputation as an employer. For this reason, On Board PR has recently developed its ‘Employer Branding’ practice.
Employer branding includes several activities which companies and institutions adopt to build their image and perception as an attractive and desirable place to work; amongst both current and potential employees. Because of the different target groups, we can divide employer branding activities into external and internal operations.
Employer branding activities need to be planned and implemented with the long term in mind and as part of the whole integrated company communications strategy. But before an employer branding strategy can be developed, we need to answer a few important questions, for example: ‘how are we perceived at the moment?’; ‘what do we want to achieve?’; ‘what are our strengths and weaknesses?’; ‘what do potential employees NOT know about us, that they should know?’ We also need to find out more about our target group – what are they interested in? Where do they spend their time? What are their important core values at work? And, finally, what kind of communications tools can we use to reach him?
This last component includes building an EVP (Employee Value Proposition), which means creating and implementing those values that will be important for our employees and will define their work at our company.
At that moment, we also need to answer the principal question – what kind of employees are we looking for and why would they want to work at OUR company? Why are we better than our competitors and what can we offer our people? What is crucial, is that the answers to these questions must be completely authentic and achievable. If they don’t meet these criteria, an employer’s good reputation amongst its workforce can easily be destroyed.
There are several tools which can help us to build an employer branding strategy. One of them is social media, which not only allows you to reach very precise target groups – especially young people – but also to engage them, communicate with them and observe their behaviour. Social media is then an important source of knowledge for building an employer branding strategy and provides a great opportunity for feedback.
Designing and implementing an employer branding strategy and building a positive reputation brings many benefits such as easier and more effective recruitment, more candidates with better skills, increased motivation, engagement and improved efficiency at work. Moreover, it not only helps build the company’s reputation among current and future employees, but also business partners. We need to realize that the best source of information about our company is our people, providing the strongest argument of all for investing in them – they may become our best company ambassadors, in turn positively influencing and improving the future recruitment of skilled employees.
Weapon of war or economic weapon only?
Thierry Wellhoff, Chairman of Wellcom (ECCO France)
The words of communication were largely inspired by the military vocabulary, the phenomenon is well known. The importance of propaganda and the impact of its tools (or its weapons) on public opinion has long been known. Today, with the help of information technologies that we use every day, communication has become a weapon of massive influence. As proof, the immediacy that gives online videos taken on the spot and broadcast immediately across social networks like the most popular of them all, Youtube.
At the end of May in the early hours of a fateful morning, the Israeli army intercepted a flotilla of six boats with 700 pro-Palestinian activists and humanitarian aid into Gaza on board. In a few hours, if not minutes, information pervaded the press agencies, but also and above all, a wide variety of websites. The activists had also made clear their wish to create a media event. It has long been recognized the communication has always been a weapon, but isn’t it becoming a weapon of war?
How should we use communication?
Thierry Wellhoff
Social Media: Every employee can be a company spokesperson
The end of centrally controlled communications
Managing Director ECCO Düsseldorf / EC Public Relations GmbH
by Lutz Cleffmann,
Managing Director ECCO Düsseldorf/EC Public Relations GmbH
(Scroll down for German version)
Who is entitled to speak for the company and when? In every well organised company, there’s a clear answer to this question. It can be found in the corporate communications manuals, accompanied by relevant Q&As and media training documents providing advice on what to tell to the press. The person in charge of communications, satisfied with a job well done, sits back and relaxes.
Out of the blue, the journalist calls: your company is deceiving the public with undercover advertising in Internet forums. Critical customers are offended and, to make things worse, some critics have already set up a special web page and forum to discuss this outrageous communications approach.
What happened? Did the marketing department hire one of those dubious ‘Internet enhancement’ agencies? Is a new activist group attacking the company? Are competitors fuelling the discussion? No, none of these. A sales force guy found critical voices in an Internet forum and – eager to defend his employer – reacted fiercely to the critic. But, in doing so, he personally offended the other party.
This case is not a fantasy case study, it is real. Worse still, the company concerned was already in trouble and under pressure concerning a completely unrelated issue. So unfortunately, this poor sales guy unknowingly delivered the evidence that the company was ‘arrogant’ and ‘unwilling’ to listen.
Believe it or not, social media has put an end to centralised and well controlled corporate communications. Today, every employee has access to a global audience, be it with communities like Facebook and LinkedIn or via one of the thousands of Internet forums. What was once pub gossip can now create a global reaction.
PR officers need to factor this into their communications planning. Social media guidelines are mandatory and you have to consider: these guidelines cannot be implemented simply by ‘giving the order’. Employees have to be convinced. You will not be able to manage with controls and sanctions alone, because you will not always be able to find out who is behind the nickname, the nom de plume or the obtrusive communication. And even if you could, it wouldn’t help much, because – as in the case described – sometimes people think that they are acting in their employer’s best interest.
Managing Social Media is a challenge for internal communications and rock-solid foundations need to be laid; upon which to build a positive image of your company.
Soziale Netze: Jeder Mitarbeiter ein potenzieller Unternehmenssprecher
Das Ende der zentral kontrollierten Kommunikation
von Lutz Cleffmann,
Geschäftsführer ECCO Düsseldorf/EC Public Relations GmbH (GPRA)
Wer spricht wann und aus welchem Anlass mit den Medien? Darauf gibt es in jedem gut organisierten Unternehmen klare Antworten. Sie finden sich in Handbüchern und sind mit Sprachregelungen unterfüttert. Der PR-Verantwortliche weiß alles gut geregelt und lehnt sich beruhigt zurück.
Doch dann kommt plötzlich der Anruf eines Journalisten. Wieso macht ihr Unternehmen unter Pseudonym in Internet-Foren Undercover-Werbung? Außerdem würden kritische Kunden beschimpft. Im Internet gebe es schon eine spezielle Seite, auf der Kritiker des Unternehmens diese miese Art der Kommunikation diskutierten.
Was ist passiert? Ist die Marketing-Abteilung einer unseriösen „Internet-Marketing-Agentur” aufgesessen? Hat sich eine Aktivistengruppe gegen das Unternehmen verschworen? Sind Wettbewerber am Werk? Nichts von alldem. Ein übereifriger Vertriebsmitarbeiter hatte in einem Internetforum kritische Stimmen ausgemacht und – ganz überzeugt vom eigenen Unternehmen – dagegen gehalten. Dabei ist er übers Ziel hinausgeschossen und hat sich dazu hinreißen lassen, den kritischen Kunden zu beschimpfen.
Dieser Fall ist nicht erfunden, sondern tatsächlich passiert. Zu allem Überfluss stand das Unternehmen auch noch von anderer Seite in der Kritik. Prompt wurden die Äußerungen des Mitarbeiters als Beweis für das überhebliche Verhalten der Firma herangezogen.
Mit den Social Media ist das Ende der zentralisierten und kontrollierten Unternehmenskommunikation gekommen. Jeder Mitarbeiter hat heute prinzipiell Zugang zu einer weltweiten Öffentlichkeit, sei es über Communities wie facebook und XING oder eines der zahlreichen Internet-Foren. Unbedachtes „Stammtischgerede” eines Mitarbeiters verhallt nicht mehr an der Kneipentheke, sondern kann zu weltweiter Resonanz führen.
PR-Verantwortliche in Unternehmen sind also gut beraten, diesen Faktor in ihre Kommunikationsplanung einzubeziehen. Richtlinien für den Umgang mit Social Networks sind unbedingt nötig. Dabei ist dann vor allem eines zu beachten: Solche Richtlinien lassen sich nicht einfach von oben herab durchsetzen. Die Mitarbeiter müssen vielmehr von ihrem Sinn und Zweck überzeugt werden. Mit Kontrolle und Sanktionen ist hier gar nichts zu erreichen, denn im Einzelfall wird sich kaum einmal beweisen lassen, wer genau hinter schädlichen Äußerungen steckt – und selbst das würde wenig helfen, wenn sie – wie unserem Beispiel – gut gemeint waren.
Social Media sind also nicht zuletzt eine Herausforderung für die interne Kommunikation. Nur wer hier eine überzeugende Grundlage schafft, wird das Bild des Unternehmens nach außen wirkungsvoll beeinflussen können.
Why do companies need values?
Thierry Wellhoff, Chairman of Wellcom (ECCO France)
If there is a subject that comes up more frequently than any other in relation to corporate culture, it is that of values. Should this seem surprising? Values are at the heart of human groups. They are of concern to everyone, and everyone feels concerned by them. But what are the values in question? Are they moral values, for example “integrity” or “loyalty”, or those that are more orientated towards marketing, such as “proximity” or “forcefulness”?
Beyond the postulated, but unjustified, dichotomy between marketing and morality, if a company feels a need to formalise a system of values, this is because it has much to gain thereby. Whether they be used to defend an ethos or assert a difference, values can confer meaning on a company’s core preoccupations, lend coherence to its communication strategy and, in particular, contribute to building its reputation.
Such objectives are necessary because, apart from its primary function of producing goods or providing services, any company that wants to prosper and develop needs to be respected by those it deals with – its employees, of course, but also its customers and shareholders, the media, and civil society generally. And for this purpose it needs to elucidate and formalise the fundamentals that structure its approach.
The coherence of corporate and marketing strategies of communication, and in particular since the advent of the Internet, is more than a necessity – it is an imperative.
All of a company’s statements, but also those of its critics, may be given equal prominence by the different Internet search engines.
Information that is available to everyone – employees, shareholders, distributors or customers – immediately and everywhere, whether on an institutional site or a blog, implies rigorous execution, and also unprecedented conceptual discipline. A company needs to structure its discourse around lines of force that are transparent, enduring, profound and structural.
The conduct of business calls for a strongly asserted ethic. But building a reputation also requires that what a company says (i.e. its communication) be matched by actions (its behaviour, and that of its partners). This is where values demonstrate their full potential for harmonising word and deed.
It is in these three ways – conferring sense, guiding communication, and building a reputation – that a value system can be crucial for a company, provided that it avoids superficiality and puts the necessary energy into the task.
If these conditions are satisfied, a value system can function as a “genetic code” that will articulate a company’s diverse dimensions and give a clear direction to its strategy.
-Thierry Wellhoff