Case Studies: Growth Via Digital
At BGG Mobile we know that, no matter what your size, every brand faces unique growth challenges. We also know that there are common issues that every company should consider, such as:
- Influencers: Is growth best influenced inside out or outside in?
- Reach: Should growth be in bursts or gradually overtime?
- Brand Perceptions: Are your current brand perceptions inhibitors or accelerators of growth?
- Consumers: Will your brand grow by stealing share from rivals or bringing new customers into the category?
- Category: Will your brand grow by improving on category norms or by looking beyond them? Should you be the best in your category or transcend you category by finding something new in pop culture to connect with?
So, below we have compiled a few case studies that illustrate how some companies made shifts in order to achieve growth. BGG can help you realign your media strategy— shift from focusing on crowded seasonal peaks to everyday customer behaviors. We can also help you get the biggest shift in performance — stop competing with your rivals for new customers. Instead, start attracting new people into your category. Check out these compelling truths:
VIRGIN ATLANTIC: FLYING IN THE FACE OF ORDINARY
CHALLENGE: Richard Branson placed a bet against British Airlines (BA) to show that he was capable of creating a highly successful high quality and value-for-the-money airline. With a budget less than one third the size of BA, Virgin Atlantic took on its rival by conveying a sense of scale and competing on service differentiation.
SOLUTION: Its “Still Red Hot and Flying” in the face of ordinary campaigns directly took a swipe at BA’s old-fashioned offering for business travelers defining “Virginness” by six attributes— stylish, helpful, up-to-date, dynamic, innovative, and fun. Virgin introduced and communicated premium services that show Virgin has all the things BA lacks, particularly luxury departure lounges and a new business “Upper Class.”
RESULTS: Since 1993 all “Virginness” attributes increase significantly relative to BA. Virgin managed to achieve an unaided awareness at the same level as its our rival BA by 73%.
Nike Training Challenge
CHALLENGE: Nike noticed that there was an underserved female audience with an untapped desire to feel better about their bodies, but who had little time for gyms and even less assistance from mainstream brands in achieving their aims.
SOLUTION: Inspired by elite athletes and Nike expertise, the company created Nike Training Club, an app that women through a series of daily exercises and new training techniques could use to get in better shape. Nike offered professional mentoring, progress measures, support, and exclusive rewards. Nike unlocked a community of women that would become an audience for Nike Women’s products.
RESULTS: Only weeks after launch Nike Training Club became iTunes app of the week and both the US and UK rising to number one position in health and fitness in 21 countries. Today the app has generated more than 40 million minutes of training.
BEATS Headphones #ShowYourColor
Inside Out— Is it possible to get people who know your brand talking more about it, leveraging their network of friends?
CHALLENGE: To leverage noise canceling headphones and targeted young people to grow an audience via word-of-mouth.
SOLUTION: Using hip-hop’s global popularity Beats used headphones in music videos and put them in the hands of young people destined for stardom. It’s “#showyourcolor” campaign championed self expression as the brand focused on an audience passionate about music and keen to showcase their individuality, while those who bought their first pair were not just proud owners they were the “#beatsarmy,” championing their style on Instagram Facebook and Twitter.
RESULTS: Beats quickly spread across 280 countries, accounting for 50% of all headphone sales during the holiday season in United States and 80% of all premium headphone sale. Beats became the US number one audio brand with 60% percent of users saying they have a strong emotional connection to it.
CHALLENGE: Texas based Whole Foods stood for the highest quality natural and organic products even if it meant its products were more expensive and popular brands were excluded from stores. Over time people started calling at “whole paycheck” and make fun of those who shop there.
SOLUTION: Instead of giving into pressure, its celebrated its differences and went a step farther: becoming the first retailer to force the labeling of genetically modified products claiming that a”food label should inform not confess.” They hit back to critics through the “shop like you deserve it” campaign, emphasizing the virtues of looking after yourself and making fun of supermarkets where the staff are “fresher than the products.”
RESULTS: Whole Foods achieved it’s year over year sales growth of 12% an added 32 new stores worldwide. The “shop like you deserve it” campaign helped it re-define targeted consumers via non GMO product attributes and a range of prices to fit selective shoppers.
Ciroc Vodka and Sean "Diddy" Combs
Outside in— reach a fresh partnership, association or network to drive new growth.
Ciroc and Diddy
CHALLENGE: Vodka is a very popular category in United States, especially in Vegas, but it has a limited racial profile amongst customers. Parent company Diaego wanted to target people outside vodka’s core customer group.
SOLUTION: Ciroc partnered with hip-hop mogul Sean “Diddy” Combs in order to attract new customers from the African-American community. Diddy, a hip-hop pioneer, branded himself “the king of celebration.” Diddy was featured in all communications for the brand with Ciroc positioning itself is the “Official Vodka of New Year’s Eve.” It sponsored red-carpet tele-casts at award shows and ran ads on a handful of networks including Bravo and E! plus publications such as VIBE and Hip Hop Weekly.
RESULTS: The brand grew 55% and has replaced Belvedere as the second-ranked vodka in the “ultra-premium” category.
HOUSE OF CARDS: #WatchResponsibly
CHALLENGE: Netflix decided to evolve its business into producing original content and needed to launch House of Cards in a way that would justify its investment and resonate with its most loyal audience.
SOLUTION: Netflix minded data from over 30 million plays a day, with 4 million ratings at the time of day when shows were watched across multiple devices. It decided to launch House of Cards all at once after noticing its loyal users would marathon-watch instead of phase their viewing. The launch campaign encourage fans to #WatchResponsibly but cleverly kept baiting people by asking “what episode are you up to?” or saying “it’s OK if you called in sick today.”
RESULTS: Within two weeks 10% of its viewers had watched an average of six episodes. An overwhelming 90% said the #Watch Responsibly release plan was a very positive experience They enjoyed consuming multiple episodes at a single viewing session. This approach made Netflix the best performing stock in the S&P 500 that year by gaining new subscribers and surpassing over 36 million users.
CHALLENGE: All around the world the Starbucks had been suffering from being seen as big corporate and impersonal serving overpriced we coffee as well as damaged by tax scandals.
SOLUTION: Starbucks decided to address these issues head-on and make the in-store experience friendlier. It introduced staff name badges, and double espresso shots as standard while launching a your name on the cup” initiative. Its campaign lamented how impersonal things have become and outlined Starbucks desire to change. All this culminated in a generous offer of free lattes for a day, encouraging customers to give it another go and introduce themselves by name.
RESULTS: These efforts managed to address a 44% negative sentiment and pushed Starbucks on the road to recovery all within the space of six months!
CHALLENGE: Founded by climbing enthusiasts in 1973 Patagonia became more than just an outdoor equipment company when it realized some of its products damaged rocks. Patagonia wanted to start a conversation about the things they cared about over and above its high-tech equipment and performance.
SOLUTION: “Committed to the Core” set Patagonia on a path to becoming known for putting the earth and its climate before all else. Campaigns talked about the effect of consumerism on the environment, encouraged people to buy only what they needed and even told customers “don’t buy this jacket” during Black Friday.
RESULTS: Patagonia established a strong and passionate community of people who appreciate the brand values and commitment to sustainable growth and fugal consumption with this approach. The company is now worth $600M and is open over 50 stores around the world.
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