VoIP branding: How to bridge the gaps between your brand identity and brand equity - A corporate-consumer perspective with Rebtel Networks AB KUNTHIKA MACHAROENSAK Master of Science Thesis Stockholm, Sweden 2012 VoIP branding: How to bridge the gaps between your brand identity and brand equity - A corporate-consumer perspective with Rebtel Networks AB By KUNTHIKA MACHAROENSAK Master of Science Thesis INDEK 2012: 10 KTH Industrial Engineering and Management Industrial Management SE-100 44 STOCKHOLM Master of Science Thesis INDEK 2012:10 VoIP branding: How to bridge the gaps between your brand identity and brand equity - A corporate-consumer perspective with Rebtel Networks AB Kunthika Macharoensak Approved Examiner Supervisor 12-02-21 Henrik Uggla Henrik Uggla Commissioner Contact person Abstract A hi-tech company often focuses on being innovative by providing product offerings as product leader, fast follower or with operational excellence. In the international calling sector the technological solutions are numerous. The providers are, for instance, normal telecom providers, Voice over Internet Protocol (VoIP) and Mobile virtual network operators (MVNO). This means that a company faces not only the competitors that offer the same solution but also from outside the company’s business sector. The company thus needs to tackle many challenges, such as fast- paced product development, market expansion, competitor volatility, at the same time as the company cultivates its brand assets. This study focuses on the branding strategy within the VoIP telecom sector. It aims to set a guideline for how companies, in particular in the VoIP telecom sectors, cultivate and enhance their brand identity in order to differentiate themselves from competitors as well as achieve a successful and sustainable level of brand equity. The thesis also studies the brand strategies that have already manifested themselves within the providers of international calling services, in particular VoIP providers and a couple of MVNO providers. By conducting the brand identity and brand equity analysis, customer analysis and competitors’ analysis, a company can make a decision on brand strategy that will further associate, differentiate, energize and support its brands. The research framework consists of both the corporate and consumer perspectives. It consists of brand theory, market research, competitor analysis and the company’s brand identity, as well as brand awareness analysis. The thesis presents the Swedish VoIP consumers’ behavior and trends, the guideline and case study on how a company bridges the gap between brand identity and brand equity as well as the guideline and case study of brand portfolio strategies that have been explored within the VoIP telecom sectors, i.e. VoIP branding. Keywords: brand identity, brand awareness, branding in hi-tech environment, market complexity, VoIP branding, MVNO branding, corporate base perspective, consumer base perspective, market research i ii Acknowledgements I would like to firstly thank Professor Henrik Uggla who has been an engaging and inspiring brand strategy lecturer and my motivating thesis supervisor. I would like to warmly thank Peter Bäckström, Head of Online Marketing at Rebtel Networks AB for the insight into Rebtel brand identity, the VoIP telecom sector and the marketing and brand strategy therein. I would like to thank Anna Oshkalo at Rebtel Networks AB who has introduced me to the great product of Rebtel, which has been another source of inspiration of this thesis on VoIP branding. I would also like to thank Susanne Großauer for the market research advice, Johannes Nordkvist for the pilot-test of the e-survey and Mark Stallworthy for the thesis proof-reading. Moreover, I thank every one of you who spent time on the e-survey as well as the feedback you provided. I would like to extend special gratitude to my parents who have always emphasized to me the value of education and who have been very supportive of me during my studies at KTH. I have found my passion in branding and I am grateful for having an opportunity to work on this topic at the Royal Institute of Technology in Stockholm with Rebtel Networks AB. Kunthika Macharoensak [email protected] iii iv Table of Contents 1. INTRODUCTION ....................................................................................................................... 7 1.1 BACKGROUND .................................................................................................................................... 7 1.2 PREVIOUS THESIS PAPER ON VOIP ................................................................................................ 8 1.3 THEORETICAL DELIMITATIONS ...................................................................................................... 9 1.4 EMPIRICAL DELIMITATIONS ........................................................................................................... 9 1.5 OBJECTIVES ......................................................................................................................................10 1.6 CHAPTERS LAYOUT .........................................................................................................................10 2. METHOD ................................................................................................................................... 11 2.1 RESEARCH PARADIGMS .................................................................................................................11 2.1.1 POSITIVISM ......................................................................................................................................11 2.1.2 INTERPRETIVISM ............................................................................................................................11 2.2 PURPOSE OF THE RESEARCH .........................................................................................................11 2.3 PROCESS OF THE RESEARCH .........................................................................................................12 2.3.1 QUALITATIVE STUDIES ...................................................................................................................12 2.3.2 QUANTITATIVE STUDIES ................................................................................................................13 2.4 OUTCOME OF THE RESEARCH .......................................................................................................14 2.5 LOGIC OF THE RESEARCH...............................................................................................................14 2.6 RELIABILITY ....................................................................................................................................15 2.7 VALIDITY ..........................................................................................................................................15 2.8 GENERALIZABILITY ........................................................................................................................15 2.9 PRIMARY DATA AND SECONDARY DATA ......................................................................................15 3. THEORETICAL FRAME OF REFERENCE .......................................................................... 16 3.1 BRAND ..............................................................................................................................................16 3.2 MARKET FORCES AND DYNAMICS- BRANDING IN THE HIGH-TECH ENVIRONMENT ............16 3.2.1 THE COMPLEXITY OF HI-TECH ENVIRONMENT ..........................................................................16 3.2.2 HI-TECH CONSUMER PURCHASE DECISION .................................................................................17 3.2.2.1 CROSSING THE CHASM ..............................................................................................................18 3.2.2.2 CUSTOMER LOCK-IN ..................................................................................................................18 3.2.3 BUSINESS STRATEGY - THE CONTINGENCY MODEL FOR HIGH-TECH MARKETING ...............18 3.2.4 STRATEGIES FOR BRANDING IN HIGH-TECH MARKET ..............................................................19 3.3 BRAND IDENTITY ............................................................................................................................22 3.3.1 THE SIX FACETS OF BRAND IDENTITY ..........................................................................................22 3.3.2 AAKER’S BRAND IDENTITY ............................................................................................................23 3.3.2.1 BRAND AS PRODUCT .................................................................................................................23 3.3.2.2 BRAND AS ORGANIZATION .......................................................................................................24 3.3.2.3 BRAND AS PERSON ....................................................................................................................24 3.3.2.4 BRAND AS SYMBOLS..................................................................................................................24 3.3.3 BRAND PERSONALITY SCALE (BPS) ...........................................................................................25 3.4 AAKER’S BRAND EQUITY MODEL ..................................................................................................26 3.4.1 BRAND LOYALTY