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The Lore of the Brand: An investigation into how organisations can build consumer engagement and brand affinity through a shared narrative. Mark G Fowlestone A thesis submitted in partial fulfilment of the requirements of Edinburgh Napier University, for the award of Doctor of Business Administration. June 2013 1 Abstract This thesis aims to explore how organisations can build consumer engagement and affinity through establishing the conditions for a shared narrative. It is set against a backdrop where brands are facing up to a serious collapse in consumer confidence, which is having an increasingly detrimental effect on the trust that people choose to place in brands and a consequential erosion in the depth of emotional connectivity between them. The consensus view amongst practitioners is that brand engagement appears to be at best fragile and exacerbated further by how the internet is redefining the way consumers interact, influence and ultimately consume. The literature describes a deepening disconnection between brands and consumers and it is clear that any future prevailing societal model will require brands appealing more to consumers’ hearts, minds and aspirations. As a result, practitioners need to re-evaluate how brands can achieve deeper mutual bonds and be provided with rich insights to assist in this. The research will investigate firstly what appears to be causing the breakdown and examine what the barriers and enablers are to achieving a more mutually effective relationship. The most recent literature has laid the foundations of where a support mechanism may exist, that in encouraging an open and shared narrative to be developed with consumers. This thesis therefore aims to explore how organisations can build consumer engagement and affinity through creating the conditions for a shared narrative. The literature review will emphasise that knowledge in this area is underdeveloped and lacks empirical evidence and hence the real value, and timely nature of this study. The thesis adopts an interpretivist perspective and gathers qualitative data through seven in-depth interviews with senior marketing professionals of global brands and via twelve consumer focus groups. The data was analysed using a thematic framework, which, using a colour identification process, allowed the themes to be highlighted along the thesis journey from literature to recommendations. The process has established a number of salient findings such as: understanding where we are now - the disconnect; where we need to get to - a deeper, emotionally connected relationship; and how we should get 2 there - the gap in the research and the insights to assist in practical application. Firstly, there are a number of factors influencing the breakdown in brand and consumer affinity, from the increased power and choice afforded to consumers via the internet, to a lack of organisational openness and a willingness to engage with consumers. It is apparent that the old models of engagement are ill at ease with the modern branding landscape and that a new understanding of engagement is required. Secondly, and apparent in all three cases under investigation, is that the foundations for deeper emotional relationships with consumers has to be via establishing authenticity. A number of drivers were identified that evoke authenticity cues: a shared corporate ethos, a staff passion for the brand, an engagement with community, and absolute corporate transparency. The broad raft of drivers identified resonates with consumers and lays the groundwork for developing a mutual narrative – the real driver of affinity. Next the research uncovered a number of insightful narrative drivers that had real value in the cases for stimulating narrative between not only the organisation and consumers, but also broader consumer to consumer. These drivers are diverse, including a call to humanize the brand, having a corporate cause, having and showing flaws and ensuring all staff believe. Finally, the research concludes with a vision and a framework for how narrative can and should continually flourish and how this image of branding should sit at the very heart of the brand essence. Since this research is fundamentally exploratory in nature, the thesis also identifies opportunities for future research for academics and practitioners and, born out of the zeitgeist, an alternative and practical branding route map to consider. The growing scepticism consumers have for brands, the effects of the global economic crisis on organisations and the deep illumination into companies that the web has offered to consumers, all mean the volatile brandscape is new and unchartered. Insights to assist practitioners in navigating through it and to ultimately assist in building consumer engagement are timely and it is affirmed 3 that this thesis will provide the enlightenment to assist in recalibrating the situation. 4 Acknowledgment I take with great pleasure the opportunity to acknowledge the ongoing support I’ve received from the School of Marketing, Tourism and Languages at Edinburgh Napier University and in particular from my director of studies Dr. Maktoba Omar. Her constant encouragement, positivity, enthusiasm, insight and energy gave me the spirit to undertake this journey and her unfailing guidance, focus and momentum bolstered me throughout. As a full time practitioner it has been my honour to launch my academic research career under her tutelage. Indeed it has been given a fantastic springboard which will inspire regular forays into the world of academia. I am also grateful for the extraordinarily large amount of time she afforded me in the final few months of the DBA, whenever and wherever I needed it. Her constant involvement and demands ensured I kept focused and on target even when the pressures of my business were pushing my time and head space to the limit. When I look back at this process the most memorable aspect will be her support and I am enormously grateful. Likewise, the time and commitment that Dr. John Thomson and Dr. Lois Farquharson have devoted to my research has been invaluable and their willingness to be flexible and supportive a testament to the great team I had with me. Both offered valuable insight regarding research frameworks, cases and overall research vision. I am particularly grateful to Dr. Thomson for introducing me to branding author, practitioner and visiting lecturer Nicholas Ind. I am also indebted to their constant willingness to meet me around the ever-changing demands of my practitioner career. Thanks must also go to all of the DBA programme team at Napier University who took great interest in my research, supporting me and offering insight, even during a coincidental meeting on a long train journey to a party - the DBA was always with me. Thanks also to Prof. Helen Francis, at Edinburgh Napier University, who after a chance introduction at a BBQ, recommended I considered utilizing my considerable practitioner experience to undertake a DBA. It was at that point that this long and winding journey began. 5 Thanks must also go to my fellow business partners and staff at Multiply, the marketing and advertising business I created nine years ago. The last four years have not only been a strain on my time to fulfil my academic and commercial obligations, but also on their commitment to assist me in my research, cover for me in practice and amuse me to raise my spirits has been immeasurable. Over the last four years the company has changed enormously, doubling its staff, opening a London office to join the Edinburgh base and all during searching economic times. The amazing people at Multiply made all this happen and their insight for this research has made their input even more valuable. In addition, without the expressed cooperation of Andy Fennell (Diageo), Caroline Whaley and Ben Gallagher (Nike), Kenny Jamieson (Dreamweavers), John Drape (Ear to the Ground) Trevor Johnson (Creative Lynx) and international DJ Graeme Park, this research would not have been possible. All being senior people in their own field yet gave unlimited access and I cannot thank them enough. Likewise, I would like to thank all focus group respondents who gave their time to participate in this research. Final thanks and hugs of appreciation go to my partner Fiona, for her patience and support as I threw myself into this research for more than the past four years. Her constant encouragement and willingness to listen and critique my ideas has been of unbelievable support. Without her enthusiasm to serve as a sounding board and to give me the space and encouragement, then the research may not have been so insightful. This research is for my mum, I hope it fills you with pride; my partner, I hope it takes us to another amazing place; and my golf buddies, I’m back. In memory of my dad, George Fowlestone, one of life’s great storytellers. 6 List of Contents Abstract 2 Acknowledgements 5 List of Contents 7 Appendixes 13 List of Figures and Tables 14 1.0 Chapter 1 – Introduction 17 1.1 Introduction 17 1.2 Title 17 1.3 Justification and Background to the Study 18 1.4 Aims and Objectives 19 1.5 The Parameters of the Research Question 20 1.6. Scope of the Study 21 1.7 Research Philosophy 21 1.8 Research Methodology 23 1.9 Contribution to Practice 23 1.10 Thesis Structure 24 2.0 Chapter 2 - Literature Review 25 2.1 Introduction 25 2.2 Context and Motivations 26 2.2.1 The Scope of the Brand 26 2.2.2 Global Brand Crisis 28 2.2.3 Consumer Disconnection than just Brand Life Cycle 28 2.2.4 Need for new measures 29 2.2.5 Customer Relationship Breakdown 30 2.3 Cross examining the major themes emerging from the literature 31 2.3.1 Trust 32 2.3.1.1 Lack of consumer connectivity 33 2.3.1.2 Value relationships more than short term brand value 33 7 2.3.2 Authenticity 35 2.3.2.1 Authenticity from the ground up 35 2.3.2.2 Authenticity through truth 36 2.3.2.3 Organisations practicing what they preach.

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