Tag Archives: identity

Mind the perception gap

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The brand gap. Image credit: LarsEn Energy Branding www.larsen.energy

The biggest challenge any utility brand faces is the gap between its brand image and brand identity. Brand image is how outsiders perceive the brand and identity is how the brand is being perceived inside the company or how managers and employees want the brand to be perceived by outsiders. This is not a problem exclusive to utility brands, energy brands or other corporate brands that have a similar background as energy companies.

Why the gap exists

The biggest reason for the perception gap is that branding of the utility is not taken seriously enough. Research has shown that the biggest hurdle for utilities to become a strong brand is the lack of understanding on behalf of management. The marketing departments have a great understanding of the importance of branding and what branding is about and what it is not exclusively about. The problem lies with other departments and top management.

What is branding about?

To many, branding is the issue of marketing or comms – for many, branding is nice colours and a cool logo. But branding is not something that can be siloed in a single department. For the utility brand to succeed as an energy brand, the whole organisation needs to live and breathe the brand. The best definition of a brand is that is whatever people perceive about the organisation. This means every interaction that the customer has had with the utility, every interaction the customer is having and will have with the utility brand. Every thought the customer has and will have about the utility.

Maintaining the gap

Looking at branding as something best kept contained at marketing or worse, containing branding for a designer that draws a logo, means that there will be a big perceptual gap between what the company wants to be perceived as and what the customer perceives the company to be. A CEO might want a brand-overhaul and asks the ad agency to draw a cool logo but no research is conducted on where this cool factor should stem from inside the corporation or its culture. The marketing department might come up with the idea for brand values but gets no support to implement it within the organisation and get everyone involved.

The results of the gap

Trying to be something that you are not will result in the customer to perceive one personality in the marketing material and branding of a utility but will perceive several other personalities and messages while communicating with the utility and its employees. Branding for utilities just like any other organisation is a human resource matter as well as a strategy issue. A clearly defined brand is an important factor of a well defined and well-organised company strategy.

Closing the gap

There are two ways to close the gap. One way is to identify what the utility and its corporate culture are about and emphasise the core values of everyone inside the utility. Another way is to align the long-term vision of the brand with the long-term vision of the utility. This might need some changes in the culture of the company and the core values of the employees. Either way, re-branding an established utility is not done overnight. It is a process that might take one or two years to implement internally and a lifetime to maintain and adjust.

Branding for legitimacy – Energinet.dk

Helle Andersen is the head of communication at Energinet.dk, the Danish TSO. Before joining Energinet, Helle worked for one of the most successful brands in terms of heritage, engaged customers, word of mouth marketing and brand recognition, not only in Denmark but in the world – LEGO.

Energinet had at the time not unveiled the company’s branding strategy meaning that Helle was not showcasing a visual identity or outreach programmes or a success story. Instead, she gave the audience in Reykjavik a rare peak into the engine room of a brand in development.

Helle raised the valid question why a TSO should even be considering branding and explained why Energinet was undergoing the company’s first corporate branding process.

Stedin – the customer centric DSO

One of the first speakers that were recruited for CHARGE 2016 was Marko Kruithof from Stedin in the Netherlands. Stedin is a DSO that services 3 of the 4 largest cities in the Netherlands; The Hague, Rotterdam and Utrecht.

Marko gave his presentation during the transmission and distribution session in Reykjavik last September. The future of energy is changing fast for the regulated monopolies as well as retailers operating in a competition environment. As Marko says, Stedin has installed around 30.000 charging points for electric cars in the last few years to meet the demand generated by the 100.000 electric vehicles on the roads in the Netherlands.

The consumer should be our fan; he pays our salaries

Stedin received the CHARGE Awards as the World’s Best Energy brand in their category and it is not a coincidence. Branding is at the core of the company’s strategy and vision – they are not only looking at the needs of the consumer of today but try to be prepared and anticipate the needs of the consumer of tomorrow. Stedin has centralized the customer but focus their branding programme also internally to have everyone in line with their mission.

Marko’s full presentation from Reykjavik at CHARGE 2016 can be viewed in the player below.

 

 

 

 

How to be the green brand in a 100% renewable market

Iceland is one of the few countries in the world that can boast of having all of its energy generated from 100% renewable and sustainable sources. Electricity is generated from hydro dams and geothermal plants and almost all hot water comes from geothermal sources.

Green energy has been the most popular differentiation tool for retailers in liberated markets for the last decades. For a retailer in Iceland it can be a challenge to be perceived as the green brand. Áslaug Thelma Einarsdóttir, managing director of marketing at ON Energy gave insights on how the company met the challenge of rebranding and positioning itself as the leading sustainable brand.

Iceland: EURO2016 most valuable brand

Wanting to win the European cup describes a small mentality. The UEFA tournament is of course the silly season for the real thing – the World Cup in two years. Sour grapes aside, it is last chance to jump the Team Iceland bandwagon before it comes to a halt – let’s see how we can look at the Icelandic football team in terms of brands and branding. This year’s fan favorite team has some things in common with successful brands.

„When you are only No. 2, you try harder. Or else“

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It’s often harder to be the best, you are on top and the only way from there is down. Being the underdog means that you have everything to win, competing against Iceland has meant that you are at best defeating… Iceland. Avis recognized that it was a strength by being number 2 and used it as a part of their positioning. It’s often easier to compete when you can gain a position rather than defending it.

Customer engagement

A great brand does not have customers – it has fans. A sports team has fans but they are quick to turn against their teams if they disappoint.  The Icelandic team makes the effort to engage with their fans. Before every match, the coach meets with the fan club to go over the starting 11 (before it’s official) and how the team will approach the game. After each match, the players give applause to the fans and cheers with them. By doing that, the team recognizes the importance of their fans.

Brand identity

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A brand can choose its identity and it can even assume a country of origin or decide to be without one. The country of origin part is difficult when a national sports team is the brand in question. Brands can often refer to their heritage. For the Icelandic team, there is of course no direct brand heritage in relations to football. For a brand without a heritage, there is always the option of finding indirect connections for a brand heritage. The Icelandic team gets associated with their presumed Viking warrior heritage. That association is perfect for a contact sport; fearless warriors that keep on fighting against all odds; it is OK to win the battle but the real champions and best warriors are chosen by Odin to die in battle and ascent to Valhalla to fight among legends. The team appeared to be a band of berserker brothers fighting for honor, tattooed, bearded and long hair.

Good results require years and decades of hard work

Fylkisvöllur, og Árbæjarlaug, Árbæjarhverfi, Reykjavik Fylkir sport grounds, Arbaer swimmingpool, Reykjavik

This point is not branding specific but important for any brand. Being successful requires hard work. Forget the legend of warm and cozy indoor soccer halls with artificial grass that are supposed to be integral for the development of Icelandic football players. Most players in the team could train on 3rd class artificial grass once a week during the winter. The only indoor facilities they could train on were meant for handball or horses. They would run outside in rain, frost and (always) against the wind. They would develop their sliding tackles skills on gravel fields made from crushed lava. Success does not come easy and sometimes success is the result of years of plucking sand and small pebbles from a bleeding ulcer after a great tackle.