How consumers are driving the shift Microbrands › wp-content › uploads › ... · How consumers...
Transcript of How consumers are driving the shift Microbrands › wp-content › uploads › ... · How consumers...
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Phone + Email
+61 2 8094 [email protected] rubychacha.com.au
How consumers are driving the shift toward Microbrands
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A microbrand is a small-scale brand you can only buy in certain ways or places, playing to a niche market.
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Every big brand started as a Micro brand
Death by a thousand cuts
*Reference: The Rise of Microbrands – iiex 2019 Austin
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... all new brands need to build mental availability to push to the front of consumer’s minds
1.Symbols
2.Packaging
3.Scarcity
4.Assignedmeaning
5.Rituals
and Form
6.Essence
7.Endorsement
Creating a sense of worth through consumer psychology
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The new brand paradigm
Consumers care less about existing brands and more about what their influencers and other consumers say about brands...
Rank and reviews matter more than a logo and a snappy catchphrase
A great customer experience means free shipping almost next day
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Consumers think differently about
Microbrands• Small is good, big is bad• Equals – we are both small• Care – they care about me, not big
profits• Discovery – strong discovery
element feeds into needs for status and achievement but also other needs like control and freedom
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Microbrands in the CPG business: will the microbrands of today become the household names of tomorrow? – Sophie Pike, PHD Global Business
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Global brands are stagnating while microbrands are the CPG growth engine
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The dynamics of a brand’s success are changing in favour of microbrands
Success in a traditional brand world
Scale & VolumeConsumer familiarity
Brand equityStandardised distribution channels
Cost efficiencyProfitability per unit
Success in a mircobrandworldInnovation
Speed to marketPersonalisation of the product/experience
AuthenticityCustomer lifetime valueProfitability per customer
Value innovation
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Making microbrands possible
Microbrands can conceive, test and execute at pace:• Limited need for start up capital• Lower overhead• Little to no inventory risk• Efficient customer acquisition with hyper-targeted advertising• Ability to iterate design quickly and effectively
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So what does this all mean for your business...?
What is your USP?
Voice of the consumer: what
are you NOT giving them?
Price is not the driver, even if they
do want free shipping – its
about the value add
What are your small brand
growth opportunities?
You must drive ‘value innovation’ not product and service innovation
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How to get ahead of microbrands – or make them your friend
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Leverage the value of your physical presenceEmbrace the platform revolution to drive customer centricityUse private labels as a differentiator – make these your microbrands
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Be disruptive. If you follow, you will get left behind.Be open to the ‘Uberization’ of fleets, warehouse space and platforms.Embrace and explore intelligent automation
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