Branding is a fundamental aspect to any business; its ability to influence and create loyalty is a vital tool which requires constant attention and extensive resources. In 2005 The Economist published a special report titled “Consumer power – Crowned at Last” (Economist, 2005) which outlined the key transition of a power shift, from producer or provider to the consumer and customer. This is a common theme which shall be explored in order to understand how brands have adapted to this transition, but with a particular focus upon how brands have been applied online and digitally. In order to establish an in depth analysis of this subject area there will be a focus upon experience brands within the alcoholic beverage industry. Diageo Plc is the third largest alcoholic company in the world (Week, 2010); and will be the company that is the focus of this evaluation. Further emphasis will consider how brands associated with tangible consumption and experiences can use this new age of branding to maximise customer loyalty but also remain competitive and manage various external threats.
Layout: Before considering experience branding within the product portfolio of Diageo the two variables will be explained and described with the use of academic theories; various contemporary opinions and examples. This breakdown will allow the impact that branding has upon the products that Diageo sells to be analysed critically. Section 3 will outline Diageo and its main business practices and operations, with a strong focus upon its core products and its key branding strategies. Following on from this Section 4 will provide a general outline of branding and the important concepts that are required to understand how experience branding functions; for example the price differences in private labels brands and manufacture brands. Section 5 will focus on how branding has changed and developed over time, outlining the key factors that had caused this and how it has affected overall business strategy and branding. Section 6 will develop upon the points made within the previous section and apply them in more depth with a focus upon online branding. The primary focus will be on how online business and branding has enhanced the power shift between organisations and consumers. Also the options for online branding will be explored and applied to Diageo’s business strategy in relation to experience branding.
Table of Contents
1. Introduction
2. Layout
3. Brief History of Diageo
4. Brands
5. Brand Development and Challenges
6. Online Branding
7. Potential Threats of Online Branding
8. Conclusion and Recommendations
Research Objectives and Themes
This paper examines the fundamental shift in power from producers to consumers within the digital landscape, focusing on how experience brands in the alcoholic beverage industry, specifically Diageo Plc, have adapted their marketing strategies to maintain loyalty and competitiveness. The study evaluates the transition from traditional branding to online "experience branding" and analyzes the associated strategic opportunities and threats.
- The transition from traditional branding to digital experience branding.
- The shift in power from organizations to the empowered consumer.
- Strategic integration of traditional and online branding methods.
- Management of brand equity and customer loyalty in an online environment.
- Assessment of potential threats, including cost transparency and consumer activism.
Excerpt from the Book
6. Online Branding
Online branding is rapidly increasing on the Internet due to the benefits it provides to both the consumer and the brands. As stated within Section Five the shift in power from manufacturer to consumer is a common trend, furthermore it has been argued that the buying process has adapted to this transition. Fundamentally this has resulted in brands needing to become an all-round experience which not only captivates the consumer to make a purchase in the short-term but to form a two way process of interaction between the two groups to create long term loyalty for the brand and fulfilment of consumer needs.
David Edelman considers the thought process that the consumer goes through; known as the buying process. Online branding is outlined within the augment suggesting that it has altered the process known as the “funnel metaphor”. This assumes that consumer will start with a large number of brands and over time and will reduce this to one brand and eventually make a purchase. However, online branding has changed this elimination process into ‘the consumer decision journey’; this suggests that rather than consumers systematically narrowing choice they select and subtract brands during an enhanced evaluation process.
Although the after purchase process has always existed the journey method makes a valid point that consumers have now entered an open-ended relationship with the brands they invest in. The reason for this is the ability to research online but most importantly because consumers share their experiences and options online (Edelman, 2010). Online branding has caused consumers to interact with brands on a level that was never considered, for instance all of Diageo’s key brands have an online presence which allows users to become connected with the products on offer.
Summary of Chapters
1. Introduction: Outlines the shift in power from producer to consumer and introduces Diageo Plc as the focus for analyzing experience branding within the alcoholic beverage industry.
2. Layout: Provides a roadmap of the report, detailing how theoretical frameworks and specific section analyses will evaluate the branding strategies of Diageo.
3. Brief History of Diageo: Reviews the company's development since 1997, highlighting its status as a global market leader with a portfolio of premium, heritage-rich brands.
4. Brands: Discusses fundamental branding concepts, including the distinction between private label and manufacturer brands, and the Three Levels of Product model.
5. Brand Development and Challenges: Explores the impact of globalization and the Internet on brand strategy, emphasizing the consumer's increased access to information and subsequent shift in power.
6. Online Branding: Examines how online branding transforms the traditional "funnel" buying process into a continuous "consumer decision journey" involving two-way interaction.
7. Potential Threats of Online Branding: Analyzes risks such as cost transparency and consumer activism, using the example of Diageo’s regulatory challenges on Facebook.
8. Conclusion and Recommendations: Synthesizes the findings, concluding that integrating online and offline content is essential for the long-term success of experience brands.
Keywords
Branding, Diageo Plc, Experience Brands, Online Branding, Brand Equity, Consumer Power, Consumer Decision Journey, Digital Communications, Brand Loyalty, Marketspace, Manufacturer Brands, Social Media, Cost Transparency, Consumer Activism, Marketing Strategy
Frequently Asked Questions
What is the core focus of this research?
The research explores how businesses adapt their branding strategies to the digital age, specifically focusing on how large organizations like Diageo manage experience brands.
What are the central themes discussed in the paper?
Key themes include the power shift from manufacturers to consumers, the evolution of the buying process, the integration of online and offline brand assets, and the risks associated with digital interaction.
What is the primary objective of this work?
The primary goal is to evaluate how Diageo uses online branding to maximize customer loyalty and maintain a competitive edge while navigating new digital threats.
What methodology is employed in this evaluation?
The paper employs a critical analysis of academic marketing theories (such as Kotler’s Three Levels of Product and Porter’s strategy insights) applied to the current business operations of Diageo.
What topics are covered in the main body?
The main body covers the history of Diageo, branding theory, brand development in a globalized world, the mechanics of online branding, and the potential threats posed by digital transparency and consumer activism.
Which keywords best characterize this work?
Keywords include Branding, Diageo, Experience Brands, Consumer Power, Brand Equity, and Online Marketing Strategy.
How does the "consumer decision journey" differ from the traditional "funnel metaphor"?
Unlike the traditional funnel where consumers narrow down choices, the "consumer decision journey" suggests an open-ended relationship where consumers actively select and subtract brands through ongoing online research and evaluation.
Why did Diageo face challenges with the European Forum for Responsible Drinking?
Diageo faced criticism due to advertising on Facebook that reached audiences under the legal drinking age and high levels of inappropriate user-generated content, forcing them to adjust their online methods.
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- Luke Gipson (Autor:in), 2012, E-Marketing Project,Branding Online and Experience Brands, München, GRIN Verlag, https://www.grin.com/document/267743
