Brand trends 2005

In 2004, local and global brand strategists pushed hard towards establishing the brand as a central business pillar - one as relevant in the board room as finance, operations or product development. In 2005, the results of this push are becoming evident, as will a new range of brand challenges....

Here comes convergence

At long, long last 3G platforms are being rolled out across the world. In 2005, the impact of a vastly extended capacity of content delivery will start to be felt. Add to that the rapidly emerging presence of integrated home communications systems (home theatre, linked to PC, linked to mobile unit) and 2005 looks likely to be another year of major 'techno hype'. Amongst the hype watch out for the rise and rise of the direct tech marketer. Digital marketing will continue to experience unprecedented growth as brands understand how to connect, convert and extract ROI from consumers through convergent channels. Technology, entertainment, youth and mobile brands will be focusing on the shiny happy possibilities of convergent technologies when it comes to delivering brand messages, new products and brand extensions.

The Red Flag...
Convergence will hand more power to the consumer - for example, with home theatre systems now backed by massive, PC linked hard drives, adverts suddenly become optional (why not just fast forward through them?). Underneath all the hype and techno action, brand strategists will need to figure out how to communicate with a new, empowered consumer.

Local is Still Lekker (even when global)

A strong South African and nation positive identity was the brand call to action in 2004. Expect this drive to continue apace in 2005. The presence of global brands (Vodafone, Barclays et al) in the mix will, however, make for an interesting shake up in identity. As South Africa becomes an increasingly prominent member of the global village, certain South African power brands will be adding an international gloss to their carefully crafted South African identities. 2005 will also mark a significant increase of brand momentum within Africa. Expect weekly news on the next South African brand moves into countries like Nigeria, Ghana, Kenya, Botswana, Angola etc. etc.

The Red Flag...
Managing the blend of local and global identities might become a challenge. In the short term, multi million dollar might and glossy marketing campaigns will probably wow local consumers - but in the long term South Africa's power brands will have to stay on their toes to keep control over their 'local is lekker' identities, while incorporating the positioning of global partners.

Internal Branding Takes its Place

Building on the momentum gained in 2004, expect internal branding programmes to take their rightful place within many organisations as part of daily company policy and action. In 2005, you can expect those companies selling internal branding interventions to lose ground, at the expense of those selling the understanding and expertise necessary to bring brand centric behaviour into company life on a daily basis. By the end of 2005, few decision makers will be viewing internal mobilisation around the brand as anything other than a critical factor impacting on bottom line performance and shareholder value.

The Red Flag...
Bringing an internal, brand-centric mind set into the daily life of a business is a complex undertaking. Brands that focus on the process without paying real attention to the people behind it could be in for a staff backlash.

Experiential Branding Hots Up

Expect experiential branding to really take shape in 2005. Operating within a hyper-competitive global economy is a tough business - and brands of all shapes and sizes will be looking towards the overall brand experience as a key point of differentiation. The good news for the consumer is that many brand interactions should (in theory anyway) become a great deal more interesting.

The Red Flag...
Only the truly innovative and exciting experiential branding drives will hit home. Most consumers are only too familiar with the concept of experiential branding - expect 'experiential fatigue' to set in in 2005. Brands merely following the experiential pack will get burnt by bored, irritated customers.

Cause Related Marketing Changes Gear

Already a prominent feature of the corporate landscape, 2005 will be a huge year for authentic Cause Related Marketing. Expect corporates to shake off the blight of distant, uninvolved cheque book Corporate Social Investment (CSI). Instead, 2005 will be the year in which South African companies start to merge CSI and marketing budgets. This should be the year of meaningful corporate involvement in societal issues - clear rewards should become evident for both corporates and social development projects.

The Red Flag...
South Africans are finely tuned into social issues and models of best practice. Those companies seeking a quick PR fix from their CSI projects should be careful. Social involvement is expected of all companies - blowing your horn too loudly could make your brand look a little bit cynical.

The Youth Get Older (and take over)

The kids who started YFM seven years ago are now taking up power positions in the business sector - as are a whole host of other people who we used to think of as bright young things. And while these new power players may be older, they retain their socially responsible, innately rebellious and quirky youth mind set. Youth culture is no longer subversive - it is mainstream, and reflects the attitudes, beliefs and passions of the new adult South African market.

Expect the brand push for the purchase of young identities (ala the Woolworths 'be yourself' campaign) to intensify markedly in 2005. A lot of brands are going to be trying to position themselves alongside the country's emerging adult population - as cool, stylish, innovative and funky as possible.

The Red Flag...
The real youth - today's teenagers and young adults - could well kick back strongly against the new establishment. Brands targeting the youth market should beware of following well established trends and fashions in their positioning, and should be developing new brand models that attempt real communication with the actual youth. Those who stop speaking (and really listening to) the emerging youth could be in for a nasty shock.

The Good Corporate Citizen

Expect triple bottom line reporting, solid corporate citizenship and sound reputation management to be the focus for most companies (listed or not) when it comes to the public relations sector in 2005. Enron, Worldcom and Parmalat may be receding into the past, but the heavy hitters are still looking for sound corporate communications practices that reflect their status as active, concerned and responsible corporate citizens.

The Red Flag...
Innovation remains critical - those brands that focus exclusively on conservative, stable triple bottom line communications and reputation management could lose ground to those who have also brought innovation action and reporting into the mix. Good corporate citizens rest on their laurels at their peril.

A Big Year for Sport

The big three South African sports brands are all facing a massive year in 2005. Alignment between external media identities and the realty of life on the pitch and in the change room will be critical if the big three are going to build on existing brand credibility and loyalty.

Expect to see a continuance of the current focus on attitudes, values and common visions and missions in soccer, rugby and cricket. In other words, 2005 will be the year of the internal sporting brand.

The Red Flag...
Action must translate into visible results. Sports marketers require stable brands that enjoy widespread public support. More race scandals (rugby and cricket) and more corruption and management crises (rugby, soccer and cricket) could hurt the long term attractiveness of the big three when it comes to sponsorship.

Conclusion

"With the economy moving from strength to strength and technological convergence finally becoming a reality, there will be a lot of action and spending when it comes to marketing, advertising and branding in the coming months," says Idea Engineers' Spark.

"But strategists and decision makers should be aware that the global economy is morphing at a rapid rate. Those who aren't looking out for the challenges that lie ahead could be vulnerable to a false sense of security. This applies as much to those in the branding industry as brand custodians themselves."

"The consumer is gradually becoming king," adds Spark. "Digital communication is increasingly liberating consumers, who are able to lobby the media and capture massive attention at low cost. We can look forward to more brand-activism movies along the lines of 'Supersize Me', and more culture jamming, anti-brand web sites and the like from consumers of all shapes and sizes. Reactions to this new, consumer-empowered environment from brand custodians will certainly be interesting to observe."