co-creation branding

Co-creation BrandingCo-creation Branding

Agenda• The Co-creation Story• Benefits & Challenges• The Evolution (Unilever’s way)• Overview• Traditional Vs. Co-creation branding• Potential• Implications -

– Social– Moral– Business

• Types of Value Co-creation• Co-creation & Personal Finance• Historic examples of Co-creation• Case Studies• The Way Forward

• Sas Bhi Kabhi Bahu Thi – 1758 episodes

• Kahani Ghar Ghar Ki – 1607 episodes

• Kasauti Zindgi Ki – 1350 episodes

Answer

• Where people got freedom of Mandi

• Wholesale rates

• Sophistication of new age shopping

• Opportunity to be closer to the brands

• Their favorite brand to their service

Shopping Mall

Reality Shows

• People can vote to their favorite contestant

• People can actually participate & win

• Consumer runs the show

• Plus they get all the drama which they see in soaps.

• Lucent technologies – 1924

• What was odd was that whenever Hawthorne workers participated in a test their productivity went up - regardless of the test!

• What was even more odd was that Hawthorne workers became advocates of whatever it was their participation involved

Was there something in Hawthorne’s water?

“THE HAWTHORNE EFFECT”

People just like participating!

Participatory Marketing (PM)

Marketing based not on passive consumption, but active audience participation

“Consumer - Generated Content."

…but

“If I had asked my customers what they wanted, they would have said a faster horse.”

Henry Ford

Vs. Engagement Control

Chairman and CEO of Apple Inc.Board of Directors of Walt Disney

Company

Co-Creation Branding

What is Co-Creation?

Co-creation is value creation by Firm and Customer together on an ongoing basis.

The co-creation concept came to light in 2000, by C.K. Prahalad and Venkat

Ramaswamy

“From isolated to connected, from unaware to informed, from passive to active."

This requires

a different mindset

different approaches

different ways of working

•Emerging market opportunities

• “unlearning”

• Shared vision

• Validating the knowledge

• Mutual value - ongoing basis

• Personalised, unique experiences

• Higher levels of customer loyalty for the firm

Benefits

Research shows that participatory marketing &/or Co-creation stimulates a key growth driver:

recommendations

Participatory marketing brings users, brands & suppliers together and that’s good for customer-focus.

Challenges

• Resistance to change

• Collaboration Vs. Competition

• Shifting mind set

Unilever’s wayUnilever’s wayEarly 1980s

Desk research, focus groups &

brainstorming sessions

End of 1980s

Ethnography

Early 1990s

Insight Activator

End of 1990s

Fast Track Insight Activator

Early 2000s

Co-creationCo-creation

The Evolution

Traditional Branding

Scheduled

Appointment

Sit back

Messages

Co-creation Branding

On demand

Whenever, wherever

Participative

Experiences

We control the way it is delivered

We allow you to play with it, pass it on

Content we think you’d like Content we know you like (because you’ve told us)

Potential

• Research shows that co-creation branding stimulates a key growth driver: recommendations

• Co-creation formula can boost sales by 10%+ (P&G)

• Dove's real women

• Doritos and Chevrolet

• Cannes advertising awards

Learn from the early successes in co-creation

Implications of Co-creation

• Community formation

• People’s talk

• Way of life

Social• Consumer

loyalty

• Living the brand

Moral• Good will

• Increased credibility

• Free PR

Business

LOCUS OF VALUE-C

REATION

STANDARD CUSTOMER VALUE

WITHIN THE FIRMWITHIN MARKETS AND COMMUNITIES(4) Mass

CustomisationADIDAS, DELL, CAR MANUFACTURERS

(8) Personalised Experience

Valueand Knowledge

Co-CreationIPOD, AMAZON (US), MEDTRONICS, JOHN

DEERE, ON STAR

(1) Product“Finishing”

IKEA

(2) New Product Design and

Development (Lead User)

P&G, SILICON GRAPHICS, VOLVO XC90, HARLEY DAVIDSON, SATURN

(6) New ServiceDesign

TELIASONERA, ALARIS MEDICAL SYSTEMS

(7) Real-Time Marketing &

ServiceAdaptation

CONTACT CENTRE DIALOGUE, CEMEX and

FEDEX TRACKING SYSTEMS

PERSONALISED or UNIQUE CUSTOMER

VALUE

Value Creation Pre-Use

(Fixed attribute products)

Value Creation In-Use

(unique experiences)

EIGHT STYLES OF COMPANY-CUSTOMER VALUE CO-CREATION

R&D

ExperienceEnvironments

(5) Open Community Ideation and

ProductDesign and

Development COMPUTER GAMES MODS, LINUX, LEGO

MINDSTORMS, FIRFOX, INNOCENTIVE

(3) Existing Product Adaptation

(Customer Feedback

SONY ANTENNA SHOPS, CISCO KNOWLEDGE CENTRE,

MICROSOFT KNOWLEDGEBASE

Co-creation & Personal Finance

1

2

• Self help efforts

• Diversified financial needs

• Mass customisation

• Integration

Co-creation financial space

Historic Example of Co-creation branding

Case Studies

• Internet phenomenon due to the film's title and premise.

• Before and after the film was released, it was then aired on television shows and films.

• Fan-made videos, video games, a noise album dubbed Soundtrack for the Motion Picture Snakes on a Plane, and various forms of literature.

Open Source Culture

• Open source governance • Open source hardware • Open source Initiative • Open-source license • Open source political campaign • Open source record label • Open source religion

• PepsiCo • Frito-Lay India • Sunsilk• Kingfisher

• Me on My Can • ‘Fight for your Flavor’• ‘Gang of Girls’• Kingfisher-Ad Director’

User-generated TV

The Way Forward