“My profession allows me to be as creative as possible.”
EDITORS NOTE Ki Braning Magazine explores worldwide brands that just know how to do things right. You’re reading the ultimate source to creating an EPIC brand. Filled with the hottest articles on leading brands, you can learn from the best. Fine tune your knowledge. Get creative. Get inspired. Get Branding. Here is your ‘Ki’ to changing the world. KIARNA HARVEY
Ki Branding Magazine Editor.
He
CONTENTS Is Red Bull taking over the world? T2 on the Golden Podium of the Tea Indsutry Zara; making affordable luxuray. About Ki Branding Magazine Bibliography
LLO
Is Red Bull taking over the world? Red Bull is more than the average food and beverage brand, setting the standards high for competitors. Whether you’re a drinker of the energy drink or not, if you don’t know Red Bull there is a high chance you live in one of the few countries that don’t stock the product, or you live disconnected from society. This brand is taking on the world by storm; now expanding from energy drinks in to extreme sports, events, music, mobile and media. Dietrich Mateschitz sparked the brand to life after discovering the Thailand energy drink, Krating Daeng, which was on the market to help with jetlag. Mateschitz paired up with Chaleo Yoovidhya, Krating Daeng founder, to develop the Western brand of Red Bull. This top of mind brand was not only the birth of a new product, but also an entirely new product category. First sold in Austria, the 26-year-old brand now sells energy drinks in over 165 countries . With multiple brand extensions, today Red Bull is more than just an energy drink. Their product line has developed over the years as the brand introduced Red Bull Sugar Free, Red Bull Zero, Red Bull Editions, Red Bull Cola and Red Bull Energy Shot. However it didn’t take long for Red Bull to expand into a new market entirely; 1988, one year after foundation, saw the brand introduce its first extreme sport event - The Red Bull Dolomitenmann. From then on the brand rapidly grew from just a product, to an extreme sport sponsor, to owning its own racecar team. The growth of the brand didn’t stop there, with Red Bull introducing its first music academy in Berlin in 1998. Today the company hosts multiple music events and even owns a record label (Redbull.com 2014). David Aaker states, “Red Bull believes in owning teams and events rather than being one of several sponsors”, which sums up the brand growth through extensions perfectly (Aaker, D. 2013). Red Bull has established an online presence through their core website, social media platforms, and websites specified to their multiple extensions. The core website integrates entertainment features such as videogames, Red Bull TV, and Red Bull Bulletin, which enhances their brand leveraging. The scope of activities this brand has branched into is overwhelming, and almost too long to list. As Red Bull has successfully branched into completely different markets under the same brand name, it’s helped position themselves as a drink for everyone.
Red Bull upholds positive brand equity through its image and brand elements. Brand elements such as memorability, meaningfulness, likability, transferability, adaptability and protectablity all work together to develop the overall image of a brand and help determine its brand equity (Farhana, M. 2012). Red Bull has developed powerful memorability through recognition and recall. Whether you’re a drinker of the product or not, Red Bull is still a ‘top of mind’ brand due to their powerful advertising, vast brand extensions, positioning and overall brand image. The reason people choose Red Bull over other competitors such as V and Mother is a result of impressive advertising and marketing of the brand through Cialdini principles such as social proof, liking, and persuasion. Consumers purchase the brand because it’s what their friends, family, and acquaintances drink when they need an energy boost; they follow the lead of others (Cialdini, R., & Martin, S. 2006). With over 3 million cans consumed each year, it can only be assumed that social proof plays a part in the success of the brand. People are influenced by people they like, therefore through the array of celebrity endorses Red Bull has, Cialdni’s principle of liking, encourages the consumer to purchase the product, and interact with the brand via their multiple platforms (i.e. Facebook, Red Bull TV etc.) (Cialdini, R., & Martin, S. 2006). Red Bull’s powerful, creative and sometimes extreme advertising can have the power to persuade people that their product is exactly what they need to “give them wings.” Considering the energy drink is now sold in over 160 countries displays positive geographical transferability. The company’s next goal is to further the expansion targeting core markets of West Europe and USA, while focusing on World Wide roll out of the Red Bull Editions (Redbull.com 2014). Therefore it can be assumed that the brand is having success in existing markets, yet again displaying positive consumer brand based equity. Internationally, consumers recognise Red Bull through likeability of aesthetic features. Visually the logo stands out and is recognisable with the two bulls butting heads, along with the signature colours red, yellow and blue. The company has established a strong slogan, “Red Bull gives you wings”, and iconic cartoon advertising that provides consumers with another branding element for recognition. Their consistency of image over the years ensures that consumers are aware and familiar with their brand. When establishing the brand’s identity, it was largely based on associating and co-branding Red Bull with an amazingly wide range of people, teams and events. This provides the company with such strong brand association and awareness, as when the consumer is faced with these people, teams and events Red Bull is the first to pop to mind. Considering the energy drink is now sold in over 160 countries displays positive geographical transferability. The company’s next goal is to further the expansion targeting core markets of West Europe and USA, while focusing on World Wide roll out of the Red Bull Editions (Redbull.com 2014). Therefore it can be assumed that the brand is having success in existing markets, yet again displaying positive consumer brand based equity.
Red Bull Music Academy
Internationally, consumers recognise Red Bull through likeability of aesthetic features. Visually the logo stands out and is recognisable with the two bulls butting heads, along with the signature colours red, yellow and blue. The company has established a strong slogan, “Red Bull gives you wings”, and iconic cartoon advertising that provides consumers with another branding element for recognition. Their consistency of image over the years ensures that consumers are aware and familiar with their brand. When establishing the brand’s identity, it was largely based on associating and co-branding Red Bull with an amazingly wide range of people, teams and events. This provides the company with such strong brand association and awareness, as when the consumer is faced with these people, teams and events Red Bull is the first to pop to mind. Considering the energy drink is now sold in over 160 countries displays positive geographical transferability. The company’s next goal is to further the expansion targeting core markets of West Europe and USA, while focusing on World Wide roll out of the Red Bull Editions (Redbull.com 2014). Therefore it can be assumed that the brand is having success in existing markets, yet again displaying positive consumer brand based equity. The brand value has increased its brand equity and credibility. Red Bull revealed its success of 2013: they sold 5.4 billion cans worldwide, indicating an “increase of 3.1% against an already successful 2012” (Redbull.com 2014). The year also saw the company turnover more than 5 billion euros for the first time in its 26 years of existence. As sales, revenues, productivity and operating profit figures continue to increase each year, the brand is heading in a positive direction proving its success in adaptability. Considering 40 billion cans of Red Bull have been sold over the years, and the great success in extensions into the music, media and sporting industries, credibility and value of the brand has been established.
The advertising and marketing integration of Red Bull is hard to fault. From the very beginning the brand established itself with renowned athletes and extreme sports, therefore through they’re consistency within this market they have strengthened their identity. Today we see captivating footage and advertisement that makes the audience think to themselves, “I want to be invincible, I want to have wings, I want to be extreme, I need to have Red Bull too”. When we thought paragliding or motocross was thrilling enough, Red Bull wowed us all in 2012 when launching Red Bull Stratos. They were the first food and beverage brand to send someone into space to complete a world record jump. The purpose of the Red Bull Stratos mission was to transcend human limits – which is exactly what they did. This milestone event fits perfectly with what Red Bull stands for, and was an advocate for their slogan “Red Bull gives you wings”. Their cartoon advertising first began in 1992 with a Leonardo De Vinci theme. The creative agency Kastner & Partners have developed a long lasting, well loved, advertisement that is versatile with characters, events or subjects, and can appeal to a wide audience. Almost 30 years on the cartoons still live and breathe through multiple platforms touching multiple markets worldwide, and creating a nostalgic element to the brand. Their entertainment features and viral nature of advertisements are stemmed greatly through their online presence. The Red Bull Facebook page has over 37 million fans, allowing another touch point for them to connect with their target market many times (Aaker, D. 2013). Red Bull is considered such a powerful brand due to the development of well over 100 potential points of contact with their consumers, and doing so in powerful and relatable ways, consistent with their overall identity. More importantly Red Bull is becoming a big part of their customers’ lives.
First Red Bull Cartoon
T2 ON THE GOLDEN PODEUM OF THE TEA INDUSTRY Tea used to be a product that you’d drink with your Nana, or an item you’d throw into your supermarket trolley on your weekly grocery shop. Maryanne Shearer, founder of Australian brand T2 Tea, has not only changed the way we perceive a simple product, but has introduced a true retail experience in the tea market that no other brand has done. Established in Melbourne back in 1996, the 18-year-old company now has 50 stores across Australia, New Zealand, USA and the UK. With over 200 tea flavours, an array of stylish teawares, a line of edible products, and an entire retail experience dedicated to the brand, T2 Tea is not your ordinary supermarket tea. Shearer has created not only a popular trend, but also an iconic brand. The T2 brand has developed positive consumer brand based equity by transforming an ordinary product, into a boutique operation that consumers are willing to pay for. While Melbourne is an avid coffee drinking culture, tea lover Maryanne Shearer spotted a gap in the market pathing the way to her retail project. While T2 delivers beautiful, magical and a vast variety of tea, Shearer wanted to create a retail experience based around how she wanted her consumers to feel, see, smell and taste. With a brand image that stays consistent across all 50 stores, stockists and online, consumers perceive T2 as an inspiring, trendy and premium brand.
Considering Shearer comes from a fashion and homewares background, it is only fitting that the identity of T2 was based on a quirky yet classy image (T2.com 2014). Each store has a matte-black exterior, with bright orange packaging and T2 signage made from lights creating a chic, cozy and sophisticated vibe. The logo is simple with an orange background and white type, yet powerful and a key element to developing consumer recognition. T2 customers leave the store with their purchases in a signature orange bag or tea in an orange cup, showing T2 is the Tiffany & Co of the industry. This helps the brand develop consumer associations in the way Tiffany & Co. has with their Tiffany Blue packaging. Today T2 has expanded their packaging colours to orange and yellow with coloured labels that really make the modern and sophisticated black shop pop. Their exotic and stylish teaware designs create an urban feel in-store, along with their striking patterned packaging for specialty tea lines. Maryanne describes her brand as ‘gorgeous’ and it really is (Gardner, J. 2014). T2 Tea differentiates from other competitors in the market through various brand extensions. While T2 is stocked in hip and popular cafes and boutique stores, the brand has a face of its own with specialised T2 Stores. The stores sell from three main product categories: tea, tea-ware and food. By introducing different product categories, T2 has proved itself as a leveraging brand, strengthening its value and equity. It’s also expanded T2 through introducing different product line extensions within each category. Though they sell the traditional teas such as Earl Grey and English Breakfast, T2 has gotten creative by experimenting with different flavours and combinations, resulting in over 200 unique flavours. To complement their key product, the company introduced its ‘Eat’ range, which features food that goes down perfectly with your tea; gourmet chocolates, jams, honey, biscuits and sweets. The brand has successfully developed an experience that extends beyond the retail experience. The one thing people enjoy more than purchasing tea is drinking it. Therefore it was only fitting for Shearer to develop a concept store – The Brew Bar. The Brew Bar is designed to inspire the drinker with new flavours, to make up their own rules and get creative with tea, as well as serve all 200 T2 flavours. The Brew Bar can be found in Melbourne, two in Sydney and in all local stores (T2.com 2014).
Considering T2 was built on creating a one-of-a-kind experience, their main marketing integration comes from experiential marketing. Not only through in-store but online as well. With the digital world becoming more prominent in our day-to-day lives, it is essential for a company to make a presence online. T2 Tea has integrated their branding into their online marketing through social platforms including Facebook, Instagram and YouTube. With 68,000 Facebook followers the brand has the power to be apart of their consumers life, which is the most a brand can ask for when looking at brand equity. They do social media right, by creating a community and a platform for drinkers to share and reminisce. Through the creation of Generation Tea, T2 developed a hashtag #gentea which encourages to get online and share their memorable experiences with the brand. This is a fabulous execution of consumer-generated content and develops an opportunity for social proof to influence others into experiencing the brand. Social media and the website allows T2 to connect with their consumers beyond tea and tea related products. The beautifully designed and easy to navigate website means consumers have T2 at the fingertips at any time and location. Along with an online store, you can experience T2TV and find multiple recipes available for free. These elements build the brand’s identity, equity and worldwide growth through creating a memorable and meaningful experience. This has allowed the brand to be transferable, adaptable and likeable within the market and among their buyers. It can be assumed that T2 has an impressive brand value considering the tea giant, Unilever, has just purchased the brand for an undisclosed amount. In the last financial year T2 generated 57 million dollars worth of revenue, and with new stores popping up across the globe the value of the brand will only skyrocket (Mitchell, S 2014). While Maryanne believes this acquisition will help T2 reach its full potential by quoting “We are delighted that we have found a home for T2 that has such a depth of knowledge of tea and has pioneered sustainability in the industry� (B&T Magazine, 2013), it poses a potential negative for their brand equity as Unilever will need to ensure the brand image does not transform into another supermarket brands alongside their others.
While T2 has changed the face of tea, it still hasn’t quite developed a brand strong enough for the world to know. Although people are happy to pay more for T2 due to successful brand image and aura, the company’s positioning is more upmarket due to the higher price and boutique experience. As a result of positioning and company age, the brand is not as well known as Bushels and Lipton who is more affordable for some and has been around longer. The brand’s awareness is increasing as new stores open internationally. By incorporating celebrity endorsers into their advertising, the brand could see an increase of awareness and association with their brand due to one of Cialdni’s six principles of influence – likeability. Their main distribution channel is direct, providing the brand to interact with consumers face-to-face. Now under the ownership of Unilever, the thought of T2 possibly moving on to our supermarket shelves means the brand could tarnish a strong touch point of the brand. While T2 is not the leading brand in the food and beverage industry, it certainly has created a powerful name and brand equity which is only going to establish more each year. With Unilever now in ownership it will be interesting to see if T2 will remain on the golden podeum, or join Bushels and Lipton in the supermarkets.
ZARA; making luxury affordable ZARA has set a whole new ball game for fashion retailers worldwide, focusing their brand around fast-fashion and world-class style that stays completely on trend. Interbrand has labeled ZARA as the world’s 36th best brand in the world, ranking higher than luxury apparel labels such as Gucci, Cartier, Prada and more (Interbrand, 2014). The Spanish brand opened its first store in Artexio, Galicia (Spain) in 1975 by founders Amancio Ortega and Rosalia Mera. Today ZARA has over 2,000 stores located in leading cities across 88 countries. The success and reputation of the brand would not exist if it weren’t for mother-brand, Inditex; one of the world’s largest fashion groups. With several brands under their umbrella, Inditex chains all share one sales and management approach with a focus on customer service; ZARA, their flagship chain, showing the world exactly how great Inditex are at what they do. Two key differentiating points that mark ZARA as a reputable brand are their eye for customer tastes, and their production process that starts with the final price and works backward to the most-efficient production. While ZARA has always positioned themselves as affordable chic, they now appear to be repositioning themselves in the markets as ‘fashion front-runner’ (Interbrand, 2014). The expanding, global brand still remains classy, stylish and affordable however are turning heads in high up places. With praise coming left, right and center from celebrities and the big names in fashion, the public are persuaded to shop at ZARA thanks to social proof and likeability. Scarcity plays a role in reasons to shop at ZARA considering collections are in and out of store within a matter of weeks. There is no, “I’ll come back for that later”, with ZARA as they are constantly delivering up-to-the-minute looks to consumers within days (Cartner-Morely, J. 2013).
Aesthetically ZARA’s visual branding is simple, strong and sophisticated reflecting the brand’s overall image. Regarding design, the black and white visual branding and store exterior is able to magnify into multiple markets without having to face any real cultural implications. This always allows ZARA to remain consistent with their image and identity, no matter where they are in the world. Like any retail company, the employees’ customer service helps with building the brands face. With continual investment in stores along with their in-store experience is ZARA’s trademark and key strategy to generating long-term growth (Interbrand, 2014). Their collections add to and increase positive consumer brand based brand equity, as they are now more often emulating high-end brands, almost exactly. Yes, they are minimalistic but they have created a luxury like brand that the average person can afford. The philosophy is built on understanding the shopping impulses of the customer, and delivering products that suit their desires. According to, Jess Cartner-Morley, ZARA’s secret weapon to information harvesting comes from the shop floor. The design team compares sales in similar styles (for example a V-neck sweater compared to a scooped one), and then uses this information as style inspiration for their next collection (2013). The ¬collections are created based on the design team being in the skin of the consumer, listening and observing to what their customers really want. This in turn shows that the identity of ZARA is structured towards the aim of pleasing the purchaser. When a company’s focus is strongly on benefiting the consumer and do it well, they become a memorable brand. With an established image ZARA is recognizable to many, especially those who love to shop and travel. Over the decades, as their brand equity increases so does their consumers recall. ZARA is walking in the direction of becoming a top-of-mind brand… if they aren’t already to some.
ZARA’s extensive growth into international markets attests the brand’s credibility. The first foreign store, opened in 1989 in Portugal, followed by New York in 2001 and since then the growth has been outstanding. The brand is aiming to launch 500 new stores in this year alone. With such a large and diverse market to attend to, and claims that their production is still conducted in European countries, it is important for the their image to stay faithful to their branding. It would be easy for ZARA to tarnish their brand image and everything they’ve set themselves up for, if facing cultural differences when beginning in a new market. ZARA has labeled itself as a store for many by offering women’s, men and children’s apparel, in 88 cultures. They are a powerful player within the apparel industry purely due to their multiple line extensions, affordable cost, and updated fashion collections every two weeks. Through brand leveraging, ZARA established a new category extension in 2003 with ZARA Home. Now offering stylish homewares across 408 stores in 45 markets, ZARA has shown the world they are transferable – categorically and geographically.
When considering other brand elements that ZARA emulate successfully, it is evident that adaptability is one of them. The brand ensures that their image is constantly admired by its consumers through refreshing their store exterior; 2014 has seen over 100 ZARA stores renovate to stay aligned with the needs and wants of their consumers and the retail industry. Renovation is a risk for profitability as stores can be closed for up to four months, however in the long run this improvement will only strengthen the brand equity. The longevity of the brand proves ZARA is adaptable, and although this year wasn’t their most profitable, ZARA is still leading the way in a memorable way. ZARA, the leading supplier of inexpensive fashion, appears to be shifting its positioning from affordable chic to fashion front-runner, placing in the top 40 best brands of the world (Interbrand, 2014). While 2014 wasn’t Zara’s most profitable year the brand still has value of 12.126 million dollars, an increase of 12% (Interbrand, 2014). Surprisingly, for such a successful brand, ZARA doesn’t invest much in traditional advertisement mediums, isn’t particularly active in the social media space, and there is no co-branding or collaborations with designers which other retail chains are more commonly implementing. While these factors have potential to tarnish ZARA’s brand equity, they seem to do so much more right, that it doesn’t play effect. ZARA have established a polished, well-organised and rapidly expanding e-commerce platform available in 27 countries and that seems to be enough for them. To move in to that ‘top of mind’ category however, ZARA should highly consider becoming more active on their social platforms as it also provides another touch point with consumers. Overall ZARA has positive brand equity and a strategic business plan, therefore should overcome any potential threats. When repositioning themselves into fashion front-runners they need to be cautiously aware of their established target market. They are successful today because of their affordable classy collections, fast-fashion focused, and consumer orientated. They don’t want to loose or tarnish such a large group of people by coming the next Prada. Their minimalistic look is the perfect representation for the overall brand and their products. ZARA is memorable, adaptable, transferable and credible among its shoppers and competitors. ZARA’s success will, no doubt, continue.
T U O B A Kiarna Harvey established Ki Branding Magazine after her new found love for brands far and near. She wanted to create a source of information that provides key knoweldge and inspiration to those in the industry, those wishing to be, and those who just love brands! The insipration behind her brand name and image stemmed from herself. Ki (k-ey) represents Kiarna, as well as the message of her publication. The symbol in the I is actually the Capricorn starsign. Kiarna, being a Capricorn, wanted her magazine to represent and provide those key charactersitics a Capricorn upholds: Leadership, Ambition and Resourceful.
References Aaker, D. (2013, May 15). Red Bull: The Ultimate Brand Builder. Retrieved October 20, 2014, from Prophet: https://www.prophet.com/blog/aakeronbrands/140-red-bull B&T Magazine. (2013, December 10). Unilever acquires T2 tea brand. Retrieved October 20, 2014, from B&T Magazine: http://www.bandt.com.au/marketing/Unilever-acquires-T2-tea-brand-1 Cartner-Morley, J. (2014, Feburary 16). How Zara Took Over High Street . Retrieved October 20, 2014, from The Guardian: http://www.theguardian.com/fashion/2013/feb/16/how-zara-took-over-high-street Cialdini, R. &. (2006). Cialdini, R., & Martin, S. Training Journal , 44-45. Farhana, M. (2012). Brand elements lead to brand equity: Differentiate or die. Information Management and Business Review , 223. Gardner, J. (2014, April 6). T2 co-founder Maryanne Shearer tells her story, from first tea shop to Unilever deal. Retrieved October 23, 2014, from BRW: http://www.brw.com.au/p/entrepreneurs/shop_founder_maryanne_shearer_tells_PR5pyii9nY4gCAcbV8z2zJ Inditex. (2014). Zara. Retrieved October 20, 2014, from Indetix: http://www.inditex.com/brands/zara Interbrand. (2014). 36 Zara. Retrieved October 21, 2014, from Interbrand: http://www.bestglobalbrands.com/2014/zara/ JOHNSON, C. R. (2008, Feburary 20). Pace-Setting Zara Seeks More Speed To Fight Its Rising Cheap-Chic Rivals. Retrieved October 17, 2014, from Wall Street Journal: http://online.wsj.com/articles/SB120345929019578183 Mitchell, S. (2014, May 5). T2's new owner Unilever sees global domination in the tea leaves Retrieved October 23, 2014, from Sydney Morning Herald : http://www.smh.com.au/business/t2s-new-owner-unilever-sees-global-domination-in-the-tea-leaves-20140504-37qrk.html Red Bull. (2014). Company Profile. Retrieved October 24, 2014, from Red Bull: http://www.redbull.com/au/en T2Tea. (2014). About T2Tea. Retrieved October 20, 2014, from T2Tea: http://www.t2tea.com/