Act 2:

1
Act 2

• Product branding and experience economy -
  evaluating and designing experiences

2
Agenda

• Welcome to the Experience Economy what is it
  really?
• Building brands in the experience economy five
  steps
• Customer made a new trend in co-creating,
  designing and evaluating experiences

3
Welcome to the Experience Economy (Die
Erlebnisgesellschaft)
External oriented motifs of the production society
Internal oriented motifs of the experience society
4
Welcome to the Experience Economy (Die
Erlebnisgesellschaft)
External oriented motifs of the production society
Internal oriented motifs of the experience society
5
Experiences defined

• Experiences have to be
• Engaging
• Entertaining
• Boundary breaking
• Value creating
• Educational
• Emotional appealing

Generation C
6
What is in a definition?

• Denmark
• Architecture, Performing arts, Books, Design,
  Edutainment, Events, Film/Video, Culture
  institutions, Toys/Attractions, Fashion, Music,
  Radio/TV, Commercials, Sport, Theater, Printed
  media, Tourism

• Norway
• Architecture, Design, Film/Photo, Arts,
  Literature, Market communication, Media,
  Meetings, Music, Meals, Performing arts,
  Tourism/travel, Experience based learning, Sport

7
What is in a definition?

• Sweden
• Architecture, Design, Film/photo, Literature,
  Market communication, Media, Meetings, Music,
  Meals, Experience based learning, Performing
  arts, Tourism/travel

• UK
• Advertising, Architecture, The art and antiques
  market, Crafts, Design, Designerfashion, Film and
  video, Interactive leisure, Music, The performing
  arts, Publishing, Software, Software and computer
  games, Television and radio

8
Product branding and experiences

• The purpose of a brand is to differentiate the
  goods or services of one seller or group of
  sellers from those of competitors. (Kotler et
  al., 1993 underlining added)

The BMW Ultimate Driving Experience
9
Five steps in building a brand

• Select a name and symbol to represent the company
  or product or service
• Create awareness/brand identity of name and
  symbol (if used) and what the product is or does
  or represents
• Position the brand to begin differentiating it
  from competing brands. A brand position is how a
  brand compares to its competitors in the minds of
  customers, prospects, and other stakeholders.

10
Five steps in building a brand

• Create a brand image to help further
  differentiate the brand and to make it easier to
  recognize and recall. A brand image is an
  impression created by brand messages and
  experiences and assimilated into a perception
  through information processing.
• Create trust in the minds of customers,
  prospects, and other stakeholders about the brand
  by maintining consistency and delivering on
  expectations. Managing customer expectations is
  critical (inspired by Ducan 200248-49)

11
Building brand identity
Adventurous
Technology
Fast-paced
Trust
Famili-oriented
Folksy
Great outdoors
Vibrant
Rough, romantic, macho cowboy
Design
Exciting
Relaxed
Friendly
Rough riding
Natural togetherness
Rugged exploration
Active
Trustworthy
Natural
12
Three important principles for live shows put on
at street level

• Identify the product or brand message
• Try to make it visual and theatrical costumes
  and props are great
• You have to go to where your target customers
  are, whether its the great hall of Grand Central
  Station or the quad of your local collage
  (Schmitt et al. 200415)

13
IKEA solo story

• Introduction of the intelligent e-newsletter
  doubles sales
• Ikeas new e-newsletter interacts with 210,000
  members of the IKEA-family and transmits
  information about 6,500 products in 1 million
  different possible variants
• This is the ultimate dialogue marketing
  communicating with individuals in stead of masses
• It is a monthly newsletter that goes out to ca.
  30,000 members. It started in 2003 and new
  figures show a 100 increase in sales!!

14
IKEA solo story

• Introduction of the intelligent e-newsletter
  doubles sales
• The newsletter creates a opportunity for IKEA to
  be in contact with its customers on a monthly
  basis and thereby create closer relations
• Each member has his/her own profile with data on
  preferences. Each member decides how the profile
  looks and thereby what the member is exposed to
  in each newsletter
• The newsletter increases the frequency of visits
  to stores and number of purchases per customer

15
Customer driven innovationCustomer-made
Planetfeedback.com
Thecomplaintstation.com

• The new trend Customer-made
• The phenomenon of corporations creating goods,
  services and experiences in close cooperation
  with consumers, tapping into their intellectual
  capital, and in exchange giving them a direct say
  in what acutally gets produced, manufactured,
  developed, designed, serviced, or processed.
  TRENDWATCHINS.COM 2006

About.com
Epinions.com
16
Customer driven innovationCustomer-made
Ipodlounge.com (5 million hits a day!!)

• Customer-made is about the truly empowered
  consumer and it is apparently a new mega trend.
• It is powered by the Generation C the creative
  generation and the internet, new technology made
  available to people around the world
• Customer-made is taking consumers seriously and
  accepting that they definitely know what kind of
  service they need, and what constitutes a good
  exprience!

17
Customer driven innovationCustomer-made
Niketalk.com (200 million visits and 3.5 million
posts!!!)
Mini2.com - Fuel for your MINI Obsession

• In 2005, 120,000 people around the world signed
  up to join Boeings World Design Team, an
  internet-based global forum that encourages
  participation and feedback while the company is
  developing its new airplane.
• Activities include message boards, conversations
  with Boeing design team, and extensive
  discussions on what members like and dont like
  about air travel today, as well as features
  theyd like to see in their dream airplane.
  TRENDWATCHING 2006

Theforce.net
Sourceforge.net
18
Customer-madeA way of evaluating and designing
experiences in real time

• True customer-made involves co-created goods,
  co-created services, co-created expriences.
• There are hundreds of thousands of experts,
  innovators, inventors and so on outside company
  walls and research labs, and innovation units at
  large corporations are increasingly NOT going it
  alone. TRENDWATCHING 2006

19
Transformation of the Relationship between firms
and consumers
From
To

• One-way
• Firm to consumer
• Controlled by firm
• Consumers are prey
• Choice buy/not buy
• Firm segments and target consumers consumers
  must fit into firms offerings

• Two-way
• Consumer to firm
• Consumer to consumer
• Consumer can hunt
• Consumer wants to/can impose her view of choice
• Consumer wants to/is being empowered to
  co-construct a personalized experience around
  herself, with firms experience environment

Prahalad Ramaswamy 200412
20
IKEA CONTEST A way of evaluating and designing
experiences in real time

• The IKEA contest fiffigafolket (ingenious
  people) asked amateur outsiders to send in clever
  designs for storing home media in the living
  room.
• Out of 5,000 ideas submitted, fourteen winners
  went to the IKEA headquaters to participate in a
  workshop and receive EUR 2,500, and the designs
  will actually get produced and end up in IKEA
  stores for all to see, buy and assemple.
  TRENDWATCHING 2006