I’m a simple individual and perhaps a creature of habit – choosing peanut M&Ms as my go-to sweet snack, relying on Cinnabon k-cups for my daily coffee fix and letting Apple technology keep me well-organized and connected.
While data (and life) confirm I’m not a lone example of a consumer having favorite brands, recent research shows that these loyalties are first to go as we adjust to the mounting pressures of the global recession. Apart from tinkering with variables of pricing and volume, there are other strategies your brand might explore to create eroding loyalty.
In fact, there’s a good chance one of your new favorite products may just be the result of two separate brands working together – the fruit of a co-branding or licensed partnership initiative. If your goals for 2023 include:
…then co-branding may be the right strategy for you! However, this approach has certain risks. And mitigating them should be a top priority. Here’s how behavioural research can help. Behavioural market research measures what consumers do – not what they say. A major part of the consumer decision-making process – some say up to 90% of it – actually takes place in the subconscious part of the brain. Therefore, measuring the subconscious can increase predictive power as these insights provide information on how different marketing content stimulates the brain, whether it evokes emotions and how those emotions impact final purchase behaviour.
Know your shifting consumer and (re-frame) their needs
75% of brands could disappear tomorrow … and most consumers wouldn’t care. On top of this, shoppers are already actively engaging in brand-switching behaviour due to rising inflation. By exploring collaborations within or across categories, you are opening a whole world of possibilities to either deepen the connection with existing consumers or expand your base.
Well-known consumer products entering into a partnership with Disney is one such example. Disney-licensed characters are displayed on Huggies diapers, Band-Aid adhesive bandages and even Gucci collections! Disney characters are iconic, instantly recognisable, and intergenerational. Through these collaborations, these brands have managed to overcome their challenges in creating appeal and eliciting an emotional response, which has an enduring effect on retaining brand loyalty but also helps draw consideration among new potential customers.
The journey of successful co-branding begins with understanding the intersection of consumers and their behaviours. Pre-testing your advertising materials (online videos, TVC, social media posts, etc.) and packs can give you crucial insight into how consumers will see, react, evaluate, and if they would ultimately be inspired to purchase your co-branded product. A mixed-method approach, where behavioural methods of eye tracking, facial coding and virtual shopping are combined with surveys, can measure such preferences with as much as an 80% correlation with actual shopping behaviour.
Introduce agile reality-checks to your co-branding initiative
On average, less than 20% of product and pack innovations are a success. Adopting an iterative approach and testing at each step of development increases the chances of yielding a positive result.