Branding News South Africa

What is changing the brand trust playing field?

The Internet and consumer expectations are two catalysts that have recently dramatically changed the playing field when it comes to building brand trust, and not all marketers have adapted their strategies to compensate for the challenges arising from the new environment. So says Added Value Europe's director of responsible marketing practice, Leslie Pascaud, writing in the 2008 edition of The Encyclopaedia of Brands & Branding in South Africa, which will be launched in September 2008.

In her by-lined article, Pascaud argues that the Internet has created a world where knowledge and opinions are much more readily exchanged than any of us could have imagined 20 years ago.

At the same time, she points out that consumer expectations of brands when it comes to their sustainable behaviour has risen phenomenally and that this multidimensional issue, encompassing a range of environmental, social, and public health topics, has moved at lightning speed to become a mainstream consumer concern.

“Instantly apparent”

“Google any brand name coupled with the word ‘complaint' and it is instantly apparent that it's impossible for brands to manage everything that's said about them,” she says. “You don't need to dig much deeper to find examples of consumers applying a good deal of creativity to get their message across, and reaching a broader audience as a result.

“For example, a complaint about the US-based video and broadband provider, Comcast, has been turned into a really entertaining video posted on YouTube [www.youtube.com/watch?v=CvVp7b5gzqU]. This film has been viewed over 1.2 million times - and there's nothing the brand can do about it but grit their teeth and try and do better in the future.

“The second, more recent, phenomenon has been the ‘awakening' of consumer consciousness. When making brand choices, consumers aren't prepared to trade-off functional benefits; a soap powder which doesn't get the clothes clean is no good no matter how environmentally friendly it is. They're also reluctant to pay a price premium, reasoning that big businesses have a responsibility to behave sustainably without calling on their customers to pay for the privilege.

“In this environment, behaving in a way which commands respect and confidence is more important for brands than it has ever been. As ethical and environmental factors weigh more and more heavily in the choices consumers make, it is becoming more and more fashionable to make extravagant claims; green has become the new black, so to speak.

“Better be prepared”

“But - and this is a big but - any brand making claims about its environmental credentials, or the ethical standards it applies in its treatment of its suppliers, had better be prepared for close and challenging scrutiny, and for an onslaught of moral outrage if consumers discover they are guilty of over-claim or ‘greenwash'. Which brings us back to the first issue: the internet!”

In her article, Pascaud also explores how brand builders should respond in the new environment and lists several lessons before concluding that “[t]rust is not created by strident advertising claims, but by the delivery of consistent and positive brand experiences, time after time after time. The memories of all these positive experiences combine to create an expectation that the next time is going to be equally good - and whether you make cars or candy bars, that instinctive confidence is critical if you want consumers to choose your brand over an alternative.”

Brands & Branding launched the Brand Trust Index in conjunction with Ipsos Markinor in the 2007 edition. This highlighted which brands, out of a cross-section of product categories, were most trusted by South African consumers. The top 10 most trusted brands that year were (from number 1) Discovery Channel, Tastic, Nokia, Ace, Koo, All Gold, Kellogg's, SABC1, White Star and Cadbury's Dairy Milk Chocolate.

Commenting on the domination of the Top 10 by food brands, Brands & Branding's publisher, Ken Preston, says: “The difficulty for service brands is that they rely on the human factor to meet these high expectations, while manufactured goods (such as chocolate) rely almost solely on the product itself - certainly an easier variable to manage. Not sweet enough? Just add more sugar. It's not that easy with people who lack ‘sweetness.'

“Trust closely linked to expectation”

“Trust is very closely linked to expectation, which is shaped by brand promises. Trust is created when promises - and thus expectations - are met, but it is destroyed when promises are broken.

“It's the fine line that brands have to tread - if you create high expectations with bold promises, you simultaneously create a potentially long and hard fall from grace if you don't meet those expectations. Service brands naturally create high expectations - they have to. Who could sell a banking brand that's ‘Today. Tomorrow. Together. Mostly.' or ‘Inspired. Motivated. Involved. Sometimes.'?”

• The Encyclopaedia of Brands & Branding in South Africa is published by Affinity Publishing, and the 2008 edition will be on sale in September this year. While it relies on Ipsos-Markinor and other research contributors to survey and identify South Africa's leading brands, its articles are written by local and international thought leaders. For further information, email or call +27 11 442 2366.

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