Adding Cool To Your Brand in 2005

SUMMARY

Introduction

Consumers are becoming more image conscious and are purchasing products that support theirlifestyle to provide an aspired image. A common marketing myth claims that coolness is onlyimportant in products such as clothing and shoes. However, research has shown that the influence ofcoolness 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 andreveal emerging unmet needs
• Extensive discussion of best practice NPD and marketing campaigns that have successfully createdand maintained a cool image
• Practical actionable recommendations detailing how to effectively position a brand with respectto the market changes

Report 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 consumerspurchasing behavior in the CPG sector. 60% of industry respondents agree it has become increasinglyimportant for CPGs to be perceived as cool by consumers.

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

Attitude branding has become more important gained coolness as target audiences becomeincreasingly frustrated and skeptical of the advertising claims made. Attitude branding is aboutstanding for something in consumers eyes; it is about expressing values that are important to aconsumer 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

CHAPTER 1 EXECUTIVE SUMMARY

• Introduction
• The future decoded
• The rules of coolness vary by age
• Three consumer groups and three levels of cool
• Three levels of coolness
• Action points

CHAPTER 2 THE FUTURE DECODED

• Introduction
• The importance of cool in CPG
• Definition of coolness
• Coolness generates added value for companies
• Coolness is important to consumers but it varies by category
• Coolness is important to consumers in the drinks sector
• The importance of coolness varies within the food sector
• Coolness is important to consumers in the personal care sector
• The desire for coolness varies by age group
• The rules of coolness vary by age
• Factors driving the rise in cool consumerism
• Image consciousness among consumers is increasing
• Seniors are still concerned with coolness
• Rise in image and attitude branding
• Defining coolness
• The definition of coolness
• Benefits to consumers of purchasing a "cool" product
• Improved confidence
• Portrays an aspired self-image
• Gain respect within peer group
• Gain acceptance within a group
• Being first and being different
• Different types of coolness
• CPGs dont have to be exclusive to be cool
• Case Study: Coca-Cola
• Three consumer groups and levels of cool
• Opinion Formers
• Opinion Formers are individualistic, confident, young and image conscious
• Marketing implications of targeting Opinion Formers
• Adopters
• Many Adopters are sociable and influential Trend Connectors
• Marketing Implications
• Regulars
• Regulars are risk averse, brand loyal, and have lower incomes
• Marketing Implications
• Three levels of cool
• Levels of cool relate to the consumer groups
• Exclusive cool
• Masstige Cool
• Mainstream Cool
• Gender differences influence coolness and viral marketing
• Men and women differ in their perception of coolness
• Women are more likely to share opinions about products
• Cool brands are not necessarily eternally cool
• Cool brands often lose their coolness due to a lack of innovation
• Brands lose coolness if they become too mainstream
• Brands lose coolness as they do not react to changing consumer needs
• Brands become uncool when they lose their brand identity or strength
• Brands lose coolness when the advertising is not as cool as it used to be
• Conclusion
• Three consumer groups
• Three levels of coolness
• Brands are not necessarily eternally cool

CHAPTER 3 ACTION POINTS

• Introduction
• Adapt the strategy to fit brand image
• Film is a powerful medium for communications
• Product placement is not a science
• "Lifestyle" products should exploit product placement opportunities
• Rules to achieve successful product placement
• Product placement needs to be seamless to be successful
• Successful product placement is rewarding
• Tailor the product placement to the country in which it is being shown
• Brands sponsoring events must fit with the culture
• Case Study - Sprite Urban Games
• Brands can sponsor "cool" events to gain positive image enhancements
• Case Study - Diageo has established The Reserve Brands Group (RBG)
• Target Opinion Formers using blogs
• Case Study - Nikes use of the "Art of Speed" blog
• Use appropriate celebrity endorsements to create coolness
• Monitor changing consumer perceptions of celebrities
• Maintain a balance between coolness and performance
• Use celebrities that will complement the brand through association
• Use a limited number of exclusive distribution channels initially
• Case Study: Firefly herbal drinks
• Use links with "cool" music to develop a cool brand image
• Link with cool artists to gain product mentions
• Unique mainstream advertising can create a cool image
• Case Study: Baz Luhrmanns Chanel No. 5 "film" commercial
• Case Study - Nikes Freestyle advertisement
• Use product placement in mainstream media to achieve coolness
• Product placement used in video games
• Exclusive cool brands need to avoid becoming static
• Companies need to continuously update to maintain coolness
• Extend the product range to remain relevant and maintain coolness
• Alter the format of brands in order to maintain coolness
• Avoid over diversifying into unrelated areas
• Brands need to maintain authenticity
• Maintain brand identity by adhering to the brand heritage
• Avoid exclusive brands becoming too mainstream
• Introduce sub-brands to maintain a cool image

CHAPTER 4 APPENDIX

• Definitions
• Research methodology
• References
• Industry Sources
• Government Sources
• News Sources
• How to contact experts in your industry
• List of Tables
• Table 1: Three levels of coolness
• Table 2: Doves "Real Beauty" campaign adopts an anti-model policy
• Table 3: "Are there any CPGs that have effectively created a cool image?", US andEurope, 2004
• Table 4: Number of Opinion Formers over 15 years (millions) in Europe and the US, 2004 - 2009
• Table 5: Number of Adopters over 15 years (millions) in Europe and the US, 2004 - 2009
• Table 6: Number of Regulars over 15 years (millions) in Europe and the US, 2004 - 2009
• Table 7: Three levels of coolness
• Table 8: Three levels of coolness
• Table 9: Jack Daniels appears in the film "Man on Fire" (2004)
• Table 10: Product placement examples in films
• Table 11: Spider-Man 2 featured Dr Pepper in the US and Mirinda overseas, 2004
• Table 12: The Sprite Urban Games creates a cool image for the brand among younger consumers
• Table 13: The Reserve Brands Group (RBG) launched by Diageo
• Table 14: Lucozade and Pepsi use celebrities that match with the brand values to create a"cool" image
• Table 15: Firefly herbal drinks use images to portray style and authenticity
• Table 16: Firefly uses a contemporary web site design to emphasize the brands image
• Table 17: Interbrew altered the format of its traditional drink and redesigned the beer glass
• Table 18: Coolness definitions
• List of Figures
• Figure 1: "How important do you believe it is for consumers to be perceived as cool byothers?"
• Figure 2: "To what extent do you agree that it has become increasingly important for CPGsto be perceived as cool by consumers?"
• Figure 3: "How important is it that consumers perceive a product as cool in the followingdrinks categories?", US and Europe, 2004
• Figure 4: "How important is it that consumers perceive a product as cool in the followingfood categories?", US and Europe, 2004
• Figure 5: "How important is it that consumers perceive a product as cool in the followingpersonal care categories?", US and Europe, 2004
• Figure 6: "How important do you believe coolness is to the following age categories?",US and Europe, 2004
• Figure 7: Queer Eye for the Straight Guy: bringing metrosexuality to the mainstream
• Figure 8: The Blackspot Sneaker company is encouraging American consumers to "rethinkcool", 2004
• Figure 9: "Do you agree that cool CPGs need to be lifestyle supporting?", US andEurope, 2004
• Figure 10: The connection between the three levels of cool and the three types of consumer
• Figure 11: Impulse used young and stylish celebrities to improve the brands coolness
• Figure 12: Coca-Cola product placement in "American Idol", 2004
• Figure 13: Mo・ & Chandon continue to update their image to remain relevant andmaintain a cool image