Brands in Bad Company Is every consumer favourable for the brand? Master Thesis Course: Degree Project in International Marketing and Brand Management (BUSM08) Supervisor: Annette Cerne Authors: Franziska Kittl – Maria Victoria Pazo Hand-in : 26th May 2011 Word Count: 30.756 0 Abstract Springing from the relatively new co-creation paradigm, this article is based on the fact that consumers have a significant influence on the brand building process. However consumers cannot be understood as a sound and compact group of buyers with homogeneous values. Instead various societal developments, and in particular the emergence of consumer tribes, support the existence of a multiplicity of consumer groups. Furthermore each of those groups is trying to appropriate the brand and to impose their own values and meanings on it. This is particularly true for social identity brands, like fashion labels, which are carrying strong cultural and identity meanings as well as symbolic power. Therefore consumer segments, which are not specifically targeted by the company, present marketers with a tricky challenge. Consequently this paper is structured around one specific research question: Is every customer favourable for the brand? In order to answer this question an extensive case study will be built around the experience of Stone Island, an Italian high-end fashion brand, which unintentionally became the symbol of the hooligan culture in the early 1990s. After an in-depth analysis of the case, the authors reveal that there are consumer segments that are inherently unfavourable for brands. However, the nuances of the topic make the reasoning path just as important as the answer itself. Beyond that, an illustrative categorization of various types of unintended consumer segments will be elaborated. Furthermore, by reviewing the examples of other companies that faced the occurrence of unintended consumer segments, plausible action paths will be analyzed following the presented categorization. Moreover, theoretical and managerial contributions will be outlined and future research possibilities on the topic of unintended consumer segments will be offered. 1 Table of Contents 1 Introduction.....................................................................................4 2 Problem formulation and relevance.................................................5 3 Literature review .............................................................................7 3.1 Branding and identity ................................................................................................................. 7 3.1.1 Producer and consumer in traditional branding......................................................................... 7 3.1.2 Utilitarian vs. identity products ................................................................................................ 10 3.1.3 Self-management through consumption.................................................................................. 10 3.1.4. Identity as self-congruency model........................................................................................... 11 3.2 Co-creation............................................................................................................................... 12 3.2.1 New perspectives on the role of consumers ............................................................................ 12 3.2.2 Consumer-centrism to the fullest: Lovemarks & brand hijack.................................................. 14 3.2.3 Theoretical gaps in both traditional and new paradigms ......................................................... 16 3.3 Segmentation and consumer tribes .......................................................................................... 17 3.3.1 Segmentation – the traditional view ........................................................................................ 17 3.3.2 From individualism to tribalism ................................................................................................ 18 3.3.3 Tribes and the linking value ...................................................................................................... 20 3.4 The particularities of the fashion industry ................................................................................ 21 3.4.1 The need for cultural capital..................................................................................................... 21 3.4.2 Diffusion of fashion trends........................................................................................................ 22 4 Research Design.............................................................................25 5 Case Study .....................................................................................30 5.1 Hooliganism ............................................................................................................................. 30 5.1.1 Origin of the concept of hooliganism........................................................................................ 30 5.1.2 On the causes of hooliganism ................................................................................................... 31 5.1.3 Hooligan features and the birth of casual style ........................................................................ 32 5.1.4 Casuals and the centrality of brands......................................................................................... 33 5.2 Stone Island.............................................................................................................................. 35 5.2.1 Brand history............................................................................................................................. 35 5.2.2 Innovativeness & quality........................................................................................................... 37 5.2.3 Marketing approach.................................................................................................................. 38 5.3 Stone Island Users .................................................................................................................... 39 5.3.1 Common users (Consumer Group A) ........................................................................................ 39 5.3.2 Casuals (Consumer Group B) .................................................................................................... 40 5.3.2 Hooligans (Consumer Group C)................................................................................................. 40 5.4 Trends in Stone Island Consumer Practices ............................................................................... 41 5.4.1 Who is the real Stoney? Intragroup distinctions....................................................................... 42 2 5.4.2 The virtual market place ........................................................................................................... 43 5.4.3 It’s picture time......................................................................................................................... 44 5.4.4 Big moments ............................................................................................................................. 45 5.4.5 Brand encyclopaedias ............................................................................................................... 46 5.5 Stone Island’s view on its association with football .................................................................. 47 6 Analysis .........................................................................................49 6.1 Brand Analysis.......................................................................................................................... 50 6.1.1 Brand physique ......................................................................................................................... 50 6.1.2 Brand personality...................................................................................................................... 51 6.1.3 Brand culture ............................................................................................................................ 51 6.1.4 Brand relationship..................................................................................................................... 52 6.1.5 Customer reflection .................................................................................................................. 52 6.1.6 Self-image ................................................................................................................................. 53 6.2 The co-existence of consumer groups ....................................................................................... 54 6.2.1 The occurrence of co-existence ................................................................................................ 54 6.3.2 The constitution of an unintended consumer segment ............................................................ 55 6.3.3 The difference between unintended segments and undesirable segments ............................. 57 6.4 Understanding the different degrees of desirability.................................................................. 57 6.4.1 The unintended segment.......................................................................................................... 58 6.4.2 Desirable unintended segments ............................................................................................... 59