How branding impacts consumer behaviour

Consumer behaviour is changing fast with new technologies and the rollout of 5G. The digital world is changing how consumers buy products and how they deal with brands. As customer expectations keep rising, it is getting harder for brands to stand apart from their competitors.

Today’s customers want to do everything themselves, from shaping their own experiences to communicating with brands and finding solutions to their problems.

Research from many universities shows that people interact with brands in much the same way they interact with people.

“Successful branding is a story being narrated to your customer across all consumer touchpoints”

-Jeff Bezos, founder of Amazon

Starbucks’ secret to brand success

The first Starbucks store opened in Seattle in 1971. Since then, Starbucks has shaped how the world drinks coffee outside the home and office. Since the early 1990s, it has built its brand by giving customers a relaxing and enjoyable experience, and it has run its outlets around the globe consistently and well. While other companies focused on advertising, Starbucks chose not to advertise. Instead, it offered its employees and partners stock options and health insurance. It also relied on customer insight, which is very different from a multi-million-dollar marketing strategy.

Its mission statement reads:

“To inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time.”

Another pillar of Starbucks’ brand philosophy is to be a responsible and ethical company. It sources 99% of its coffee through Coffee and Farmer Equity (CAFE) Practices, thus halving its carbon footprint. In its 2019 report to shareholders, it announced its aim to store more carbon than it emits and to provide clean water. Along with expanding its plant-based options, the company works to eliminate food waste in its supply chain. To do this, it invests in new and regenerative farming methods. These improve the quality of its ingredients and protect the taste, look and texture of the food served in its stores.

Amul’s secret to success

The Amul cooperative was registered on 19 December 1946. Because of unfair trade practices, farmers led by Tribhuvandas K. Patel approached Sardar Vallabhbhai Patel. He advised them to produce their own milk and supply it directly to the Bombay Milk Scheme instead of going through Polson, which did the same work but paid them low prices.

Its tagline reads:

“Amul, The Taste of India”

In 1966, Amul hired Sylvester da Cunha, the managing director of an advertising agency, to design an ad campaign for Amul Butter. He created a series of hoardings with topical ads about everyday events, and that is how it all started. The campaign became so popular that it earned a Guinness World Record for the longest-running ad campaign in the world. Amul holds a share of about 85% of the butter market, 90% of chocolate drinks and 50% of cheese. Amul has truly changed how people in India see brands. In a study of Amul customers, 52.5% of people bought its products because of their quality, and 30.83% bought them because of the brand image.

Cadbury’s secret to brand success

Cadbury began operating in Birmingham in 1824. In 2010, Kraft Foods bought the company, and it is now part of Mondelez International.

Cadbury launched in India in 1948 and is headquartered in Mumbai, Maharashtra. Cadbury India currently operates in categories such as chocolate confectionery, beverages and biscuits. Its products include Dairy Milk, Tang, Oreo and Bournvita.

Cadbury targets different age groups with different products. Dairy Milk, Bournvita, 5 Star, Fuse and Tang are aimed at kids. Silk and Celebrations are for millennials. For adults, it offers Bournville, Temptations, Celebrations and ice creams.

It runs digital marketing campaigns for its brands, such as Dairy Milk and Oreo. Its social media campaigns cover all bases, so its brands show up everywhere.

A standout campaign:

Kuch Meetha Ho Jaaye – a Dairy Milk campaign.

India is rich in traditions and customs, especially on auspicious days. With this in mind, Cadbury India launched a campaign called “Kuch Meetha Ho Jaaye”. It positioned Dairy Milk as the sweet to enjoy during the happy moments of life. The campaign showed how Dairy Milk helps people celebrate big and small moments with joy, bringing together people of all ages. It was also endorsed by Amitabh Bachchan.

Branding and consumer behaviour are part and parcel of any marketing plan. Understanding how your customer thinks is the first step in building a marketing strategy for startups. Learn how to find a target audience for your startup to connect with the right customers.