UM: The Rising Power of the Consumer - Huw Griffiths - MediaBizBloggers

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I've been fascinated by the recent publicity around The Gap and their new logo. They have decided to scrap the new logo and return to the original branding, largely due to the volume of negative buzz surrounding the change. As I read the reports, I started to think back to the infamous launch of New Coke from the 80s, as well as several more recent back-tracks, from the new packaging for Tropicana to the recent change in the packaging for Sun Chips.

My first reaction was that while there is a clear trend here of brands reacting to consumer feedback, the reasons cited for the negative feedback have become increasingly disconnected from the actual product experience. When New Coke was pulled from the shelves, it was because of a perceived issue with the actual taste of the product. Contrast that with the recent Sun Chips uproar – over the noise the package makes! Nothing to do with the actual product itself! Even the logo for The Gap clearly has no relationship to the store experience or the products sold! What is going on here?

What's happening here is the continual rise in the power of the consumer. UM's recently-launched Wave 5 survey has been tracking the explosion of social media and the associated power that it places in the hands of consumers since 2006. The most recent data reinforces the tremendous opportunity – and risk – that this provides brands. Consumers are actively looking for an ongoing relationship with brands, and the data clearly shows that when they have this relationship, there are enormous positive benefits for brands.

However, the examples above illustrate the double-edged nature of this transfer of power. The reality moving forward is that consumers will be more and more vocal about all aspects of brands – not just the actual brand experience – and brands need to accept and embrace this. This all raises some fascinating questions around the role of measurement and research in new product development and brand evolution. I am guessing that a volumetric risk assessment of the negative PR impact was not always conducted in the examples above before decisions to reverse course were made. Did The Gap forecast a significant negative sales impact if they continued with the new logo? Did Sun Chips have strong evidence that the overly loud bag would stop people buying them?

In this ever-expanding world where consumers and brands engage in a lively dialog and consumers wield power for both good and evil, the brand impact needs to be measured, forecast, and factored into every major marketing decision.

Huw Griffiths is EVP, Global Director of Marketing Accountability & Research at UM. Huw can be reached at huw.griffiths@umww.com.

Read all Huw's MediaBizBloggers commentaries at Curious Thoughts from Curious Minds - MediaBizBloggers.

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