🤑How To Create a Killer Brand
What We Learnt From Markus Kramer of Brand Affairs, AG
It’s not often you get to talk to a thought leader with the experience, expertise & insight of Markus Kramer, formerly of Aston Martin & Harley Davidson; currently a partner at Brand Affairs AG.
Although heavily focused on consumer luxury, Markus’ vast knowledge & insatiable curiosity gives him an ability to inject fresh, yet practical, ideas into a vast array of industries.
Now more liberal with his time, he’s taken to offering services on a consultancy basis, speaking & helping choreograph amazing campaigns with a variety of luxury brands.
After having the amazing opportunity of spending some time with Markus in London, he’s what we learnt:
Branding Is THE Core Component Of Any Company
Branding is often alluded to be how a company is able to assemble & distribute products around the world. We’ve suspected for a while this paradigm to be rather inaccurate, masking the true value of a brand.
We feel true branding is more about what a company is there to do. Its purpose, without being too esoteric.
Markus explained that:
Branding, especially in the world of Luxury, needs to focus on what people don’t buy just as much as what they do.
To use his words, the intangibles.
A good example of this is one of the latter clients his company has been involved with — Vertu
Vertu’s phones are $10,000+, aren’t necessarily at the “bleeding” edge of technology (although they’re pretty damn good), and are designed with some of the most exclusive components one can imagine.
A $10,000 phone… and I want one!!
The “Intangibles” Define 90% Of What Helps Brands CREATE Value
Markus’ definition of the “intangibles” is best given as a list of 3 items — status, scarcity & “super story”.
Although applicable directly to luxury, there is no reason why this does not apply to many other brands too:
Status (Introversion)
Luxury has typically been used as a way of displaying status amongst peers.
Markus explained that after the crash in 2008, luxury started to become much more of an introversion:
Framing it as a reward, luxury is often taking the form
of giving yourself a “raise” so to speak.
A difficult concept for many (most see it as a £4,000 watch, or a $10,000 phone); the enriched often do this kind of thing — if you work consistently & attract a larger amount of money, you’ll be able to afford a nice meal, holiday, watch, phone, or perhaps a car.
Having explained it like this, the role of status in the luxury world certainly becomes a lot clearer.
It’s no longer about showcasing what you have, but
identifying who you are (or want to be)
As members of the Internet generation, this certainly rings true — in a world which expects to know what you ate for dinner, it’s somewhat of a taboo to frame yourself in a self-illuminating light, let alone broadcasting “vain” shows of pride (wealth or experiences) to the world.
To this end, luxury purchases are often made as a result of a self-determination to live a more cultured & expansive life. Where experiencing the beauty & joys of the world is beheld much more than a plain display of materialism.
Scarcity (Price + Place)
A hallmark of “luxury” items has always been its scarcity.
As undemocratic as this may be, it’s one of the driving forces behind what makes luxury so alluring; a taste of the sublime — a glimpse of the inaccessible.
As much as scarcity has been harnessed in the past, the fact is going forward, scarcity will likely be valued for much different reasons. One of the defining factors being the Internet — the ability for people to buy whatever they desire from the convenience of their home.
To this end, Markus gave us an amazing idea —
Instead of focusing on keeping the product AWAY from the masses, EXPRESS the brand (through new channels)
By putting the focus on to the complete offering makes it more attractive & allows you to accentuate the “intangible” values of the brand
Rather than a hindrance, he explained that if luxury companies are able to embrace “new media” platforms correctly (to inspire better experiences; share with their communities), they’ll generally become more attractive as a result.
In terms of scarcity, it’s still the case that your brand needs to be found in the most applicable areas; depending on who you are.
The idea of “place” is a fundamental idea in marketing, and still applies to luxury; obviously as people can engage with a brand in many new ways, those must be accommodated.
“Super Story” (Message)
This is a big idea we’ve never thought about before. Every marketeer should know the value of a “message” in your marketing — giving a campaign a reason for being.
The difference with luxury is a “message” is never enough. Luxury is all about extraordinary, and the super story the epitome of that. Super stories are often the core grain / kernel of value a brand will have grown around.
Be it a historic commitment to excellence, a passion for a particular craft, or even the love of a particular way of doing things, luxury brands have a very sharp focus on what their “super story” is — defining everything from where they are offered to how much they cost
Patek Phillipe is an example Markus gave of this
As a 175+ year-old watchmaker, the marketing dept for Patek Phillipe decided to focus entirely on making the watch a generational item, passed down through families.
They did this primarily because the company itself has been worked by many members of the same family, and also because they wanted to focus entirely on the experience of the item — something which would stand the test of time (no pun intended)
HISTORY… The Most Intrinsic Intangible
Further to the idea of the “intangibles”, Markus gave us the idea that…
One of the most valuable elements of a brand’s value, especially in luxury, is its HISTORY.
You cannot buy history.
The heritage of your company is irrevocable. Something that’s crystalized in the memories & breakthroughs which it’s created.
Especially true with luxury, but equally as important with any established brand, the history of a brand is one of the biggest contributors to value; if you get its part correct.
Markus was adamant that luxury marketing STARTS with history. He said:
You cannot have a “luxury” brand without a
pedigree in history
A caveat to this being in the US, where technological luxury could be seen as an indicator of exclusivity, and hence, luxury. Some recent examples including Tesla & Apple’s iPhone
Chinese Super Brands
An interesting thought —
Could the next luxury “super brands” emerge from China?
The rich culture of China is so deep & vibrant that Markus said he wouldn’t be surprised if a collection of brands with histories reaching back 1,000+ years would surface in this recent spate of Chinese economic growth.
Imagine the likes of:
- a Fashion brand
- a Tea / Gourmet company
- a Firework company
- perhaps a very old Mechanical company (who now make watches) raising from the haze of the Chinese economic dragon
The beauty of a Chinese “super brand” is the West would be drawn to it like honey. The culture, history, expertise & mass that China has to offer would blend seamlessly into an incredible offering.
However, as important as it is to honour historic pedigrees in a brand’s value proposition, the reality is our world is moving very quickly, and it’s therefore vital to consider the future:
Considering Marketing’s Future -
It’s All About ITERATION
We talked for some time about the “future” of marketing, especially pertaining to the luxury space.
Markus was adamant:
The future of the marketing being defined by technological progression, for at least the next 25 — 35 years.
We actually asked him a lot of different questions, and framed this as something different than your typical “what’s going to happen”; his answer was resolute:
He recommended that Web 3.0 (wearable tech & the Internet of things) would come and proliferate the many retail experiences, as the Internet has already done, for aiding in the discovery of brands & companies.
The difference will be that this technology should help a brand to engage in a more ways than just through eyes, ears & nose.
As wearable technology becomes more prolific, the pace of community engagement may change completely — allowing someone to go into a store and purchase items without the aid of an in-store clerk; allowing even more focus to be put onto why the brand exists (the intangibles)
Future Doesn't Mean “Different”
The core of what Markus was saying was that future technology would help to accentuate & integrate value propositions more seamlessly into a range of different environments.
The way in which we interact with these items will surely evolve over time; in a similar way to how we are now “naturally” composed with the Internet. Iteration, not revolution, is likely to be key for brands, especially in luxury
Our opinion is that some things never change. These are your values — why you’ll be as sought-after tomorrow as you are today.
In a world of “now”, what lasts?
The problem for many companies is they will mould their offering around a trend / way of thinking. We believe, as demonstrated by luxury, the most attractive brands stick to a core set of principles, and use technology / progress to accentuate them
Adding 3 More P’s To The
Value Proposition
The traditional marketing mix is often described as “Price, Product, Promotion & Place”. This has been the backbone for many marketing campaigns for a long time; but as we discussed, things are changing all the time.
Although widely accepted as being outdated, this model has been seen as the basis for the majority of marketing activities to date.
The problem is trying to describe a better model has been troubling for many. We just focus on “passion” and sharing that throughout the organization, but for an established brand, how do you capture this?
Markus gave us his ideas on the state of the marketing mix, essentially adding 3 P’s to the historic 4:
People
In the past, people were seen as customers / team members — a divide between the two.
Markus believes that moving forward, people will play the central role in the development of a brand, both internally & externally. To the degree that they should be treated as equals — the most important element to what gives a brand value.
To best describe this, many marketing activities of old were focused on providing “telling” people about the company. Many companies still think “marketing” is about “promotion”.
The fact is that “marketing” is much deeper than promotion; it’s the way the company works. It’s everything from how the company packages its products, to how it conducts customer service.
“People” puts everyone at the core of the company.
You’re no longer serving a “market” — you’re serving a group of people. People who have ideas & passions. These are who power the brand — giving vitality & energy to keep sharing its excellence with the world
Planet
how a company works with its ecology:
The branch of biology that deals with the relations of organisms to one another and to their physical surroundings.
Specifically, Markus defined that unlike typical “green” marketing (which is often just a shroud), putting ecology first would mean responsibly sourcing products, engaging with the best craftsmen in the most applicable places for the product in the world.
For example, instead of buying strawberries based on price, you’ll be able to engage with the packaging of the strawberries to see how far they've travelled.
You’ll be able to get an insight into who grew the strawberries, what they’ll be great with & how ecologically balanced they are.
Planet also extends to how the product / company fits into the world.
An innovative tech company would not be naturally suited to Switzerland, unless its meant to serve Swiss companies. Luxury items — complicated watches, clothing, etc, would be suited to Switzerland
Process
How you do things
This is so much more important now we have instant communication — a company is subliminally attractive based on how it does things.
Many people take this as trying to define your work ethics with some strange words. The fact is process starts with yourself. How you get up in the morning, what you treasure, who you respect. ALL of that comes into the product
The bottom line is all of these P’s point to one thing: your brand represents something
It means something to PEOPLE.
It’s made of the PLANET.
It works to its own PROCESS.
The representation is different for every brand, but it’s always there — how you do things is much more important than what you do.
Everyone has experience, skills, ideas & imaginations which are completely different; the role of marketing is to share those with the world.
This is especially pronounced with luxury, but is true for every brand, in our opinion.
Notes
At Frontline, we love to focus on one P — “passion”
Once you get to the core of why people turn up to work, we’ve found you can take care of everything else relatively simply. The problem for many brands (especially ones who just want to get paid) is without a deeper reason for being there, you typically can’t achieve the magical element to your work; the stuff of value
It’s our opinion that a brand is a group of people who share similar passions & want to create a better world in their way. The value they bring to that world is defined in their brand — it lives in what they produce.
It’s our belief that the role of “marketing” is to further accentuate the process of identifying & sharing what you really create; the resource people come to you for in the first place.
As a brand, it’s difficult for many people to appreciate the role they play in society, less the impact it will have with people’s lives.
The truth is everyone just wants to live a better life, and they’re seeking for ways to do that. They don’t really care about what you do, or who you are. What they care about is the experience you create to help
PRODUCTS Are Bought, But Aren’t The DEFINTION Of A Brand
Products are the result of process
We asked whether “Product or Process” is more important for a marketeer / brand in the 21st century.
The answer, from Markus, was “both” — the product is a result of the process; which should be there to support the product. Interestingly, both of these should be built on a passion to share a particular way of doing things
More so now than ever, the process of how a company creates & defines their product, is as much about the process of creation as it is the product itself.
Indeed, the creation process, often regarded as a “secret”, is increasingly being displayed by companies to share how their team bring their “passion” to the table.
This is especially true with the likes of many web start ups — who’ll do anything they can to “break the mould” and create a work environment which encourages creativity.
Both process & product are within the realm of marketing —
Keep true to a company’s core personality, creating a fresh experience, maintaining the values the brand is loved for.
Conclusion
A big thank-you to Markus for giving us the time!
It’s inspiring to see the thoughts & ideas Markus has, especially for luxury, but also for other areas of the world. Currently engaged in speaking around the world, we’re sure you’ll benefit from his ideas if you spend the time talking to him!
Thanks Markus!!
