The power of City Branding

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Great cities are charged with energy. New York is so buzzing it never sleeps, Paris is intense yet laid back & cool and charged with romanticism while cities like Austin and Berlin are filled with creative energy. These cities have formed a lasting impression in our minds. We have often caught the vibe of those places without even visiting them. These cities have enjoyed a favourable word of mouth and popular culture has further helped shape them as brands.

The benefits of a strong city brand

There are namely three reasons (or segments) why cities (and countries for that matter) actively try to build a favourable image. They are all about creating an attraction for those segments.

1. Inhabitants

Cities are looking to retain and attract new inhabitants. Just like for companies, inhabitants with a strong sense of the image of the city they live in are happier. A city that has a strong, positive image becomes an attractive place to relocate to. Being a sought out city brand for inhabitants means that the talent pool grows.

A city that has a strong, positive image becomes an attractive place to relocate to

2. Tourists

A strong brand comes first in mind when it comes to deciding on consumption. A city that has a strong image pops ups first when people are thinking of taking a vacation. There are of course many things that exclude a certain city such as the occasion of the vacation or the time of year.

3. Companies

Companies, like most people, seek out to be in the company of their peers. If you are a start-up, your dream is Silicon Valley — If you want to produce a film, you go to Hollywood. It is not just about the hype, if you know that your peers are there, chances are that the infrastructure and knowledge are already there. And along with companies come jobs and jobs attract inhabitants.

Landmarks are like iconic logos

Building a powerful city brand is about being an attractive city in the eyes of the consumer or the stakeholder. It is not about creating an attraction. The Empire State Building and the Eiffel tower are great landmarks or icons for their cities but Paris and New York are about more than that — landmarks are kind of like logos — a logo is a graphical representation of a brand but there is more to it than the logo for great brands. Just like strong product brands — strong city brands appeal to people because of an emotional connection. The strongest city brands in the world are strong because they provide people with an intangible benefit, an experience.

The Empire State building and the Eiffel tower are great landmarks or icons for their cities but Paris and New York are about more than that.

Energy as an ingredient for the city brand

While every city has a certain energy to it or a vibe, not many cities have actively built their brands around energy in the literal sense. There are of course cities like Houston or Aberdeen that have become known for their oil industries but that image often has a hard time to translate outside the energy industry. We can see cities that are building an energy brand on a B2B level. Vasaa in Finland has a strong energy cluster and another example is Berlin. Berlin is not known as a powerhouse of energy sources but rather a powerhouse of creative energy sources. The image of Berlin as an energy brand builds on its image of creative energy and focuses on energy innovation.

We can see cities that are building an energy brand on a B2B level.

Energy imagery as part of the city brand has not yet been fully utilised. There are enormous opportunities for cities around the world to become strong energy brands. It can be based on novel or innovative ways of energy usage or it can use landmarks as icons for their energy brands. The Hoover Dam and the Niagara falls are great examples of iconic landmarks that have attracted millions of people for decades. But there is yet a city to emerge that uses those kinds of landmarks as an active ingredient that adds value to the city brand.

Energy can create even more value

When I set out to research the possibilities of branding energy, I wanted to do more than guide energy retailers into creating new logos and jingles or adopting a new colour. I wanted to see how energy can create more value than it already does by making an emotional connection to the consumer’s minds. This can be done by branding energy as a valuable ingredient for sectors outside the energy space. One of the areas this applies to are cities and countries as brands -as energy brands.

I wanted to see how energy can create more value than it already does.

That is why cities and places as energy brands have been a topic in at the CHARGE Energy Branding Conference agenda. To make energy more valuable we must look at ways to connect energy to other things than devices through a socket in the wall.

Brand building through experience and relationship

At CHARGE 2016, Tomaz Oresic, Chairman of the board at Elektro Maribor, presented on the current outlook of the electricity supply value chain is going through major changes, with new players entering the market, shift of perception of electricity as a basic commodity and how the customer is increasingly being put at the very centre. These disruptive trends are changing the old electric utility business model with the result of an increasing number of utilities starting to pay more attention to branding.

Tomaz points out that utilities have been marketing an almost invisible product to an undefined customer with top-down communication strategies. These engagement strategies have often failed since the electricity suppliers have not walked the talk and due to mismatched communication.

The global utility in a new energy paradigm

As Ryan O’Keeffe pointed out during his presentation at the CHARGE Energy Branding Conference last September, large energy companies with a long legacy of generating and selling electricity, are not normally considered cool.

The company has and is going through a comprehensive overhaul of its image, meaning and role in the fast-changing energy environment. As Mr O’Keeffe pointed out, it was a change in strategy that was long overdue, the company’s old logo was designed when Google was still operating out of a garage in Silicon Valley.

We as a power company can and must play a key role in tackling these challenges.

Enel found itself working in a new energy paradigm and found that how it had been conducting itself for the last fifty years was not going to work in the next fifty years. During the rebranding process, there were some strengths that the brand possessed that would become valuable in the changing energy landscape. By taking a humble approach and acknowledging that a big corporation with a big corporation culture might not foster innovation that could keep up with the time. The brand turned this weakness into a strength by using its global scale and resources to foster open innovation; helping entrepreneurs that are set out to change the energy paradigm even further.

Ryan’s presentation from CHARGE – The World’s First Energy Branding conference can be seen below. Enel was one of the finalists for the 2016 CHARGE Awards as one of the world’s best energy brands. The report on the best utility brands has been published by LarsEn Energy Branding and can be found here. The 2017 CHARGE Energy Branding conference takes place in Reykjavik October 9-10 where the CHARGE Awards will be presented for the second time.

New York Energy Week

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The CHARGE Energy Branding Conference is collaborating with partners around the world that have similar objectives as the conference. From trade associations in the energy space, media and events related to the energy space, we are very grateful for having such a strong group of allies that find our message relevant.

One of our partners is the New York Energy Week – a week of events that takes place around New York City. The event is hosted by the industry for the industry. Instead of one centralized location, the events are hosted by various companies in the energy sector. These events feature speakers from organisations and institutions such as National Grid, NYISO, Con Edison, Enerknol, NYC Mayor’s Office, Rocky Mountain Institute and the State of New York.

Like CHARGE, the New York Energy Week is a cross-sector event. While the industry has had a silo-mindset, the event encourages a dialogue between various fields of the energy sector to create an understanding, inviting all energy stakeholders to come together and help drive forward the global energy economy.

Friends of CHARGE are the friends of the New York Energy week and receive 20% off early bird tickets. There is no secret handshake, only a secret code which is CHARGE20.

Communicating a Green Energy Value Proposition

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Landsvirkjun is Iceland’s biggest power generation company, generating over 70% of electricity in the country. There has been a lot of changes in the Icelandic power market and Landsvirkjun has moved from focusing on low-cost electricity buyers market to a more balanced seller’s market, offering competitive prices.

The company offers 100% renewable power on the wholesale market, having only a few customers, meaning that their branding and image building is a bit different from other traditional power companies. It is, however, important for the largest power company in Iceland to deliver a clear message to their stakeholders (the company is owned by the Icelandic authorities) and their customers.

Landsvirkjun’s mission statement is:

Landsvirkjun’s role is to maximise the potential yield and value of the natural resources it has been entrusted with in a sustainable, responsible and efficient manner.

The role of the company has changed in the last years. Instead of focusing on growth and creating new jobs, its focus is today on more value creation than before. The energy transition and the way renewable resources have become more valuable for end consumers has enabled Landsvirkjun to focus more on the Green value proposition.

Empowering the energy customer

One of the major challenges utilities face is getting the consumers to trust them. Eggert Gudmundsson has an interesting background, after receiving an MBA degree he worked for several years for Philips before returning to Iceland to become the CEO of the countries biggest fishing companies and then became the CEO of Iceland’s biggest fuel and retail company. With this background in commodities, electronics and finally energy, Eggert is now heading the innovative energy enabler eTactica which has developed an EMS for SME’s. The eTactica solution enables energy companies to create tighter bonds with their customers and adds measurable value to their services.

 

Can the incumbent utility brand itself green?

Jim Rogers, the retired former CEO of Duke Energy was the first CEO of a major utility to address environmental issues and once named by Newsweek as one of the “50 Most Powerful People in the World”.

In his presentation at the Green Energy track at CHARGE 2016, Jim talked about the customer relationship during the transformation of the Power Industry in the United States.

Duke Energy has the reputation of being affordable, reliable and safe. No one would say that they were green, they were the highest contributors of Co2 in the United States.

You can’t brand yourself unless you walk the talk.

Duke Energy has cut down Co2 emissions by almost 30 per cent but Jim admits that although the number seems high and the amount of emissions cut is quite large, the company is still a major contributor of Co2 emissions in the United States. For the effort, the company has been on the Dow Jones sustainability index for eleven years.

Branding: it’s not what you say about yourself, but what others say about you.

In addition to cutting down emissions, the company has made some considerable investments in wind and solar as well as investing in solutions that provide customers with rooftop solar.

The key point in adapting to and investing in green technology is to be able to communicate with and educate different stakeholders. The customer expects affordability and the investor want to see that the company will see a return on their green energy investment.

As Jim put it, the company invested in where the wind blows and the sun shines as well as looking at opportunities where the regulatory environment is favourable towards green investment.

 

 

 

The 2017 CHARGE Awards

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Stedin from The Netherlands won the 2016 CHARGE Energy Branding Awards in the category of Transmission and Distribution

The CHARGE team is in full swing reaching out to the brands that were shortlisted by a panel of experts as the World’s Best Energy Brands. The panel consists of specialists in marketing and branding as well as energy professionals around the world. The panel has members in academia, energy companies, energy associations, energy innovation, advertising agencies and marketing consultancies.

We are reaching out to 90 brands in 6 categories of the best energy brands in the world. The categories are established brands, challenger brands, green brands, transmission brands, distribution brands and energy product brands.

The methodology derives from decades of academic research and studies in the fields of marketing and branding to determine how consumers perceive brands in general. To make the measurement more relevant to the energy space, knowledge from recent research on consumer perception of energy utilities was added to make the methodology more specific for the energy space. The methodology is also the basis for the Energy Branding Benchmarking Index (EBBI) which is used by power companies around the world to measure their energy brands.

We will reveal the finalists later this summer, each category can have up to five finalists. The finalists will be featured in the next edition of the best brands report. The report might also feature a selection of shortlisted brands that will not make it into the final selection.

The CHARGE Awards were a great success at the inaugural CHARGE Energy Branding Conference which was the world’s first conference to focus on branding in the energy space. Following the success of last year’s event- we have decided to expand the awards from three categories to six this year.

Energizing opportunities at IKEA

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Sustainability has been a part IKEA’s identity since it’s humble beginnings in Sweden decades ago. Guðný Camilla Aradóttir is the Sustainability Responsible at IKEA Iceland, taking care of sustainability issues. The goal of the brand is to eliminate waste at all time.

IKEA’s sustainability strategy, titled People & Planet Positive, set out some ambitious goals for the brand to head towards more sustainability. IKEA operates wind farms around the world and has installed solar panels on the rooftops of its store locations around the world, installed panels on office buildings and even sold solar panels for homes at some of its locations.