23 Jan 3 Meaningful Brands to Watch in 2014
Each year we see a variety of predictions of which brands will disappear in the coming year. We have chosen to take a different and more positive path. We would like to celebrate some of the brands we believe will be building brand value, customer loyalty and excitement by creating strong, emotional bonds with consumers. Here is our list of three “High Attachment” brands to watch in 2014:
Stock analysts are buzzing about Tesla’s stock price and the resulting market cap (stock price multiplied by the number of shares in circulation). According to the bean counters, if you look at Tesla’s current and future profit and all the stuff they own, Tesla stock should be selling at around $67.00 per share. This value is based on the typical metrics used to value GM, Ford, Toyota, Nissan and all the other companies who build autos. Today, Tesla shares are selling on the market for $179. So why are people paying over 250% more for Tesla than the valuation of the average automaker? They believe in Tesla. Investors and Tesla owners are deeply and emotionally connected to the brand. Tesla is the “Apple” of the auto world. They connect to people who want to challenge the status quo and buy into the “Think Different” campaign. As a result, Tesla’s Model S is shaking up the automotive industry, the company has high brand value, and as a result, a huge share price.
People who love Nike pay considerably more money than average price for their athletic shoes and apparel, but it is difficult to rationalize the higher price point based on performance or functional metrics; so what is it that makes Nike stand out compared to their competitors?
Nike is a leader in creating great products and experiences because they make attempts at deeply understanding their customer’s motivations and needs. The Nike brand itself is about motivation, aspiration and self-expression. They are doing more than any other brand in their market to fulfill the self-expression and aspirational needs of the athlete within. Nike is tapping into the need for self-expression by allowing customers to design their own shoe from the sole up. So, as opposed to just buying the shoe that their favorite athlete had a hand in creating, customers can now express their personal selves and create their own following. Nike also allows people to monitor and measure their inner self. Their line of FuelBand connected-self products allow the user to truly quantify the athlete within. This line of products motivates consumers to be active by tracking their level of activity throughout the day. Adidas may be tearing up the soccer pitches at the 2014 World Cup but look out for Nike to win price point battle.
Dunkin’ Donuts is where the average Joe (or Jane) go for coffee. This is where the plumbers, painters, bus drivers, and blue collar workers meet up in the early morning before putting in a hard day’s work. Dunkin’ is a global multi-billion corporation that much of America is loyal to because they see it as their ‘local’ doughnut and coffee shop. The antithesis of Starbucks, Dunkin’ emotionally connects to their loyal customers who desire that ‘local’ feel by simply and consistently offering delicious doughnuts and coffee without the pretention. To appeal to the regular guy who is comfortable with consistency and routine, they keep small details consistent: the use of their fun and ‘cheesy’ color scheme, a quirky bubbly typeface, to the style of the coffee lid. To help spread awareness to other potential coffee and doughnut lovers around the world, Dunkin’ created a twitter hashtag campaign, #mydunkin, where every day customers and even celebrities, can share their Dunkin’ experience. They also take authentic customer stories and make them into commercials starring the actual customer who told their story, generating a word of mouth buzz around their brand. Dunkin’s genuine efforts of making meaningful and lasting connections with their customers is a great example that other brands can learn from.
Compiled by Kompas Strategy staff