Ethical Pulse - from the Ethical Junction membership

Editorial: Using Brands for the Better

by Tom Greenwood, Scamper Brand Strategy

In the last few years, there has been a big increase in demand for ethical and green products and services.  Following this increased demand and a growing desire to reduce the negative impacts of consumption, many new ethical and green businesses are being started up.  There are of course many large, established businesses trying to ride on the green and ethical wave, but also a great number of small businesses founded by individuals or groups that want to be able to earn a living while making a positive contribution to the society.

This is all good news in the grand scheme of things, but as the market grows, it is becoming increasingly competitive and small ethical businesses need to know how to hold their ground.  One of the vital business tools commonly neglected or misused by such businesses is their brands.

Some ethical businesses have even suggested that the use of brands is against their ethical principles.  However, even if you don’t intend it, your business and products will become brands in your customer’s minds.  Therefore the question is not whether to use brands, but how to use them to your advantage.

Here are a few key tips to help you use brands more effectively:

Positioning

The foundation of establishing any successful brand is to occupy a clear position in the target customer’s mind.  In an overcrowded marketplace, you must have a distinct and relevant focus if you’re going to stick in people’s minds.

Many companies fear that focusing is risky, but the reality is that the wider you spread your brands, the less you’ll be valued and remembered for anything in particular.  Innocent Drinks learned this lesson when having clearly established themselves as leaders in the smoothie market, they extended their range to include water based juice drinks.  It seemed like a great way to expand the business, but the reality is that in the consumers mind, Innocent is Innocent Smoothies, not Innocent Drinks.  Widening the product base can seem like a good way to build up a brand, but often it does more harm than good.  Consequently, Innocent have now re-launched their juice drinks under a separate brand called This Water. 

In terms of differentiation and relevance, Innocent has become a household name selling products that are neither new nor unique.  The key to their success has been in differentiating themselves from the mundane, look-a-like competition by making an emotional connection with the customer.  Innocent’s brand personality is distinctive and in some ways gives consumers as much pleasure as the drink itself.  Differentiation should be a high priority for any brand.  There are many ways to achieve it, but always remember that emotional benefits are inherently more valuable and harder to replicate than functional benefits.  Offer your customers something that they really care about and you’ll be in a good position to build a strong brand. 

Identity

This is the part of brands that is spoken about the most, and includes elements such a brand names, logos and slogans.  It’s very important to look professional and make a good impression, but in actual fact the main purpose of the identity is to communicate the brand’s position.  This of course means that you must first establish an effective position, before you can establish a great identity.  On top of that your identity is at the front line of making your brand stand out from the crowd.

For ethical businesses, this means that you don’t necessarily need to use words like green, eco and ethical in your brand name, nor do you necessarily need logos featuring trees, leaves and flowers.  In-fact, in the majority cases these are exactly the things that you should try to avoid because in a green and ethical market, such identities will do little to set you apart from the competition.  Brands such as Divine, Seasalt and Smile are great examples of how to successfully use ethics as a part of your brand, rather than as your brand.

Embodiment

Last but not the least, you need to live up to your own brand.  The principles that you say are at the heart of your brand need to truly be at the heart of everything your brand does.  There is nothing that consumers hate more than a brand that boasts and then doesn’t deliver, but there is also nothing consumers love more than a brand that captures their imagination by fulfilling their promises in interesting and rewarding ways.  For example, Ecover’s environmentally friendly factory and refillable packaging, and Freitag’s new flagship store in Zurich built from reused shipping containers.  Make sure that your brand isn’t just an empty marketing exercise.  Everything from your customer service to your product design should be an exciting and authentic representation of your brand.

Whatever type of ethical business you run or plan to start up, ensure that you think through your brands carefully and use them to your advantage at every opportunity.  It’s one of the most cost effective and powerful business tools available and if we’re going to truly change markets for the better then we need to use every advantage we can get.

Tom Greenwood is co-founder of the Kenilworth based ethical brand consultancy Scamper.  In 2007 he won the DTI’s Business Leader of Tomorrow Award for his exceptional strategic thinking and commitment to sustainability.  More information about Scamper and ethical brand development can be found at www.SustainableBrandStrategy.com.

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