Brand val­ues

New Zealand Marketing - - Columns -

A s mar­keters , bra nds are our pow­er­house. At the fore­front of our pro­mo­tional ac­tiv­i­ties, brands de­fine our prod­uct iden­tity and stand out, en­sur­ing our prod­uct is re­mem­bered and re­pur­chased. A truly pow­er­ful brand can be bought on iden­tity alone. Nike’s tick is all it needs.

How­ever, in the Pa­cific re­gion, the New Zealand psy­che pro­vides us with a chal­lenge. New Zealan­ders gen­er­ally need more than just the prom­ise of a brand to drive pur­chase. They need to know that they will be also ob­tain­ing value for money from this trans­ac­tion.

A stag­ger­ing 74 per­cent of Chi­nese con­sumers said they would be will­ing to spend more on de­signer goods, which is the high­est glob­ally. But 17 per­cent of con­sumers in New Zealand and 26 per­cent of those in Aus­tralia said they were will­ing to pay more for de­signer goods com­pared to un­branded prod­ucts with the same func­tion.

The re­cently re­leased global Nielsen re­port also ex­am­ined the role ad­ver­tis­ing has on in­flu­enc­ing con­sumer pur­chas­ing de­ci­sions. Glob­ally, 55 per­cent said com­mer­cials in­crease their pref­er­ence for buy­ing a brand, but only 32 per­cent of New Zealand and Aus­tralian con­sumers agreed with this state­ment. These re­sults high­light what mar­keters here need to be aware of: New Zealand and Aus­tralian con­sumers have to be­lieve they are ob­tain­ing real value when mak­ing a pur­chase, and this gen­er­ally can’t solely be for the sta­tus of own­ing a par­tic­u­lar brand.

Con­sumers in New Zealand care more about value than sta­tus, says Suzie Dale.

And mar­keters need to un­der­stand those pur­chas­ing mo­ti­va­tions.

This con­trasts with emerg­ing mar­kets, such as Asia, where con­sumers of­ten pur­chase goods to ob­tain a sense of be­long­ing. By buy­ing a Gucci hand­bag, you’re also join­ing the ‘fash­ion elite’ and ob­tain­ing the sta­tus that comes with this. How­ever, in the Pa­cific, the need for sta­tus is much less ap­par­ent, and while we might like the ex­tra ku­dos a Gucci hand­bag brings, we gen­er­ally also need to be­lieve this bag will last for many years and be the best-per­form­ing hand­bag we’ve ever owned, since it cost the most we’ve ever paid for a fash­ion item.

The re­sults show the value propo­si­tion is es­sen­tial to en­cour­age pur­chase. At the same time, Ki­wis and Aussies tend to have a cyn­i­cal side when it comes to ad­ver­tis­ing and brand­ing. We like to see our­selves as ‘in­tel­li­gent shop­pers’ who aren’t won over solely by mar­ket­ing claims but in­stead buy prod­ucts based on merit and the value they of­fer. This presents a dif­fi­cult bal­anc­ing act for those in­volved in brand mar­ket­ing cam­paigns.

Mar­ketersin New Zealand re­ally need to un­der­stand what mo­ti­vates pur­chasers to buy their goods, and hone in on these qual­i­ties in all as­pects of brand pro­mo­tion— from ad­ver­tise­ments to pack­ag­ing to point- of- sale. The value propo­si­tion can vary de­pend­ing on what a con­sumer is look­ing for. For ex­am­ple, a brand doesn’t have to be the best qual­ity to en­cour­age pur­chase, it just has to sat­isfy the needs the New Zealand con­sumer is look­ing for at the time. There­fore, a one- sea­son dress doesn’t need to be made from the best ma­te­ri­als or made to last, it just needs to be cost- ef­fec­tive and look good for a few months. There­fore those as­pects should be high­lighted in mar­ket­ing ac­tiv­i­ties.

The key for most New Zealand and Aus­tralian con­sumers is that brands need to of­fer more than just the ex­ter­nal pack­ag­ing and prom­ise. The prod­uct needs to match cus­tomer ex­pec­ta­tions and ful­fil their re­quire­ments as an in­tel­li­gent, savvy and in­formed shop­per.

Writ­ten by suzie dale Dale is head of Nielsen Pa­cific’s brand prac­tice. suzie.dale@ nielsen.com

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