co-creation branding
DESCRIPTION
Co-creation is value creation by Firm and Customer together on an ongoing basis.TRANSCRIPT
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