Brand Management Brand Audit Swapfiets PDF

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Brand Audit af Swapfiets 2020...

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Brand Management (BHAAV6033E)

Ida Lambach 34.120 characters

Brand Management (BHAAV6033E) - Home assignment

02/11/2020 S129379

Table of Contents Background ...............................................................................................................................................................1 Brand Inventory ........................................................................................................................................................1 Brand Exploratory .....................................................................................................................................................7 Strategic Recommendations ....................................................................................................................................13 Tactical Recommendations ......................................................................................................................................14

Background Blue tired bikes have been taking over bike lanes and bike racks in cities all over the Netherlands, Denmark, Belgium and Germany. Swapfiets, the company behind the blue tires, was founded in 2014, when three Dutch students from Delft came upon an idea to switch the classic product category “bikes” with a subscription service.

The concept is pretty clear: For a fixed price per month we offer you a bike, and we make sure the bike itself is always able to use. It turned out to be a great concept. Swapfiets, who offer standard and electric bikes, initially funded its own expansion, though it has also received financial support from Ponooc, a Dutch venture capital firm focused on green technology. Today Swapfiets is the world's largest bike subscription service with over 130,000 bikes subscriptions and operations in over 45 cities in the Netherlands, Belgium, Germany and Denmark (Swapfiets, 2019). This audit focuses on Swapfiets brand performance on the Danish market.

Brand Inventory The aim of this section of the brand audit is to conduct a current and comprehensive profile of how all services sold by Swapfiets are marketed and branded.

Brand Elements In order to get an overview of Swapfiets brand inventory let us first examine the brand elements. The brand elements are defined as trademarkable devices that serve to identify and differentiate the brand. The purpose of the brand elements chosen by Swapfiets should be to enhance brand awareness, facilitate the formation of strong brand associations and elicit positive customer brand judgment and feeling.

Brand name: Swapfiets

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The name of the Swapfiets brand is composed by the English word "swap" and the Dutch word for bike, "fiets" (Aurelius, 2017). To Dutch people the brand name creates and reinforces the wanted type of association and verbal imagery. Swapfiets offer a monthly bike subscription and swaps customer’s broken bikes with working ones, which is strongly indicated by the brand name - if you are a Dutch customer. However, few non-Dutch people are familiar with the meaning of “fiets”. The word “fiets” would not evoke the intended associations among international customers. Though Swapfiets is a short and easily pronounced name that can be recalled and recognized, it has limited transferability as it does not evoke the intended associations for international customers.

Swapfiets Logo The Swapfiets logo is easily recognized and recalled. The font has been carefully designed, the light-blue color is easily recognizable, the lines surrounding part of the letters are distinctive and can create associations with roads, traffic or even bike lanes. These visual choices result in a fun, rich and aesthetically pleasing imagery that catches the interest of potential customers. The unique font, lines and color provides Swapfiets with an easily protected logo both legally and competitively. However, the logo does not reinforce any obvious associations with bikes, subscriptions or service that Swapfiets provide. This is critical since neither the brand name nor the brand logo clearly indicate the service Swapfiets provide.

Swapfiets Slogan Swapfiets slogan “Your Swapfiets always works” is communicated everywhere through Swapfiets website and social media platforms. The slogan is modified and presented in different variations such as “Always a working bike” and “We make sure your Swapfiets always works” (Swapfiets, 2020). The key message is consistent and presents a specific ROI of time saving, security and satisfaction for customers. The message of the slogan thereby creates a strong association of worry-free leasing for potential customers. The slogan presents an opportunity for Swapfiets to clearly communicate their subscription service for bikes. This should be stronger emphasized since international customer do not know the meaning of the Dutch word for bikes; “fiets”. Therefore, Swapfiets should include the Danish word for “bike” in their slogan.

Packaging The packaging is in the case of Swapfiets bikes of particular interest. All Swapfiets bikes has a light-blue front tire making them easily recognizable. The blue front tire makes the Swapfiets fun, interesting and make them stand out in bike racks, on bike lanes and other public places. The bikes are well-designed and well-equipped

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with features as great lights and safe lock system. These factors create a constant reinforced natural curiosity or reminder amongst non-subscribers, and they convey associations of Swapfiets bikes with the subscribers. In terms of memorability, transferability and liking the packaging and design of the Swapfiets products are great. By exanimating the brand elements of Swapfiets we are able to understand the initial strengths and weaknesses of Swapfiets brand name, logo, slogans and packaging. It has become clear that Swapfiets brand elements are great in terms om memorability, liking and protectability. However, the brand name is not easily transferred across borders and cultures and this problem creates a spillover effect to most of Swapfiets brand elements. Brand elements are important for brand management and are the first thing to be considered in terms of designing and implementing brand marketing plans for Swapfiets.

The Swapfiets Marketing Mix An investigation of Swapfiets marketing mix will present insights into the set of actions and tactics, that Swapfiets currently uses to promote itself in the market. Since Swapfiets is a service business we will be going over the 7 P’s.

Product & Price Swapfiets offer 3 services with the commonality of offering a bike on monthly subscription. The three different subscriptions are 1) Original, 2) Deluxe 7 and 3) Power 7.

1) The Original is described as a “Robust Dutch Bike with coaster brake”. The Original bike has no gears. The Original bike comes in an array of different colors and customers can choose the color they prefer. Swapfiets offer a 20 DKK monthly student discount for the Original subscription. The Original is priced at 160 DKK and 140 DKK for student. In addition to the student discount Swapfiets offer a 99 DKK one-time discount for Original subscribers who are willing to commit to a minimum of twelve months. (Swapfiets, 2020).

2) The Deluxe 7 is described as a “Luxury bike with 7 gears, hand and coaster brake”. The Deluxe 7 bike comes in an array of different colors and customers can choose the color they prefer. Swapfiets offer a 20 DKK monthly student discount for the Deluxe 7 subscription. The Deluxe 7 is priced at 190 DKK and 170 DKK for students (Swapfiets, 2020). In addition to the student discount Swapfiets offer a 99 DKK one-time discount for Deluxe 7 subscribers who are willing to commit to a minimum of twelve months.

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3) Finally, the Power 7 is described as a “Luxury e-bike with gears and hand brakes”. The Power 7 bike comes in an array of different colors and customers can choose the color they prefer. Unlike the Original and Deluxe 7 the Power 7 subscription offer no student discount and is priced at 595 DKK per month (Swapfiets, 2020). All subscriptions are sold through Swapfiets online website and Swapfiets stores. On the basis on available information it has not been possible to determine whether Swapfiets use value-based or cost-based pricing. A common denominator for all the bikes included in the Swapfiets subscriptions is that they are designed as classic ladies’ bikes which make them somewhat non-sporty and heavy.

Place Swapfiets only operates in bigger cities in the markets they are active in. Swapfiets drive to the customer location to provide bikes and maintenance service. This enables Swapfiets to meet customers at home, at work or other locations that are convenient to customers. However, this strategy also eliminates a significant portion of potential customers living outside of bigger cities. In some bigger cities Swapfiets have flagship stores and these serve as pick-up points and workshop for broken bikes. Swapfiets offer an app for iOS and Android that customers can use for service, information, subscription management and contact. Swapfiets have chosen a direct sales and distribution channel allowing Swapfiets to maintain control over the customer experience and information provision to new and existing customers. This also allows Swapfiets to obtain valuable insights into customer needs and wants through direct contact.

Process The Swapfiets customer experience starts online. Customers must sign-up, choose the city they live in and select their wanted subscriptions via the Swapfiets app or website. After placing an order, Swapfiets make an appointment to deliver the customer’s bike. Upon receipt, Swapfiets adjust the bike for the customer personally enabling customers to use their new bike immediately (Swapfiets, 2020). Further service and contact between active customers and Swapfiets take place online via the Swapfiets-app or website. In bigger cities customers can show up without notice at a Swapfiets store to “swap” or fix their bike. Swapfiets consistently use the word “swap”, to describe when Swapfiets come to a customer or customers come to Swapfiets and exchange (swap) a broken bike with a working one (Swapfiets, 2020).

People Swapfiets was founded by students and their target customers are also students. This greatly impacts the culture, service and employees at Swapfiets. At Swapfiets employees are directly responsible for customer

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contacts through personal service, maintenance and sales. The employees at Swapfiets who are responsible for customer service and contact are mainly young – just like customers. This makes referral marketing for employees to friends and relatives a natural sort of mini sales force for Swapfiets. With this in mind it seems only right that Swapfiets continue their strategy of young frontier employees. However, Swapfiets prefer skilled and trained personnel “backstage” to enhance the service quality and efficiency, as seen on for example their open job positions as a “Certified Bike Mechanic” where Swapfiets require “at least 2-year experience as a bike mechanic” and “a certified bike mechanic from a recognized place of education” (Swapfiets, 2020).

Another major cultural influence seen at Swapfiets is the young entrepreneurial energy coming from the founding team of Dutch students. The founding team and their student background is highlighted throughout Swapfiets’ website and students are at the core of the vast majority content produced for Swapfiets online and offline marketing. The student background of the founding team is also highlighted in most articles and other PR related activities. This story of entrepreneurial students is effective for Swapfiets in terms of recruiting likeminded young people to enhance the overall customer experience.

Promotion Swapfiets offer special discounts for student customers in the form of a 20 DKK discount per month on Original and Deluxe 7 subscriptions. The student discount is not offered on the Power 7 subscription since the E-bike subscription caters to an older segment with more buying power. Swapfiets also offer special deals around semester start at universities to better reach their target group of students. The messaging of the ads run on social media are heavily targeted towards students and cater to their needs.

Swapfiets run campaigns on Facebook, Instagram and Snapchat. Their ads often include pictures of young people using the Swapfiets bikes. Swapfiets also use influencer marketing via Instagram where they have created a hashtag #bluetires making users able to search for blue tires on social platforms and find Swapfiets. The influencers engage their followers in competitions and offer discounts for Swapfiets. Apart from social media Swapfiets buy ads on Google but only for specific searches for “Swapfiets”. In addition to online marketing efforts Swapfiets sponsors sports e.g. the basketball club Bakken Bears from Aarhus.

Physical Evidence The physical evidence has in part been examined when reviewing the brand elements and packaging and when examining product and place in Swapfiets marketing mix. However, the design and layout of Swapfiets

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physical stores are noticeable. When entering Swapfiets stores customers get a unique experience. The design is modern and minimalistic and the Swapfiets color palette is consistent with the light blue, white and grey interior. The layout of the store is very open, allowing customers to look into the bike workshop which exposes mechanics fixing Swapfiets bikes. The Swapfiets stores are aesthetically pleasing, modern and they emphasize the service that Swapfiets provide for its customers.

Secondary Brand Associations Another way for Swapfiets to build brand equity is by secondary brand associations. This way Swapfiets may be linked to other entities that have their own knowledge structures in the mind of consumers and so Swapfiets borrow brand knowledge from stronger or appropriate brands. In articles from big magazines like Forbes (Forbes, 2020) and Bloomberg (Bloomberg 2019), Swapfiets associate themselves with other leading subscription-based brands like Netflix and Spotify, which allows them to leverage already established conceptions in the minds of consumers.

In Denmark Swapfiets have entered into to a partnership with Redbull and frequently sponsors their events (Redbull, 2020). Redbull is a well-established energy drink especially popular amongst young consumers who associate Redbull with freedom, sports and happiness (BrandStruck, 2020). Swapfiets’ partnership with Redbull allows Swapfiets to leverage these associations in the minds of the consumers and the events gives Swapfiets exposure to a young, curious and adventurous audience. Conclusions on Brand Inventory When examining the brand inventory of Swapfiets it has become clear that Swapfiets target their efforts towards a younger audience. Swapfiets full-service concept selling convenience, certainty and elimination of unforeseen expenses for their customers definitely is targeted to attract a young audience. Swapfiets have designed a modern and aesthetically pleasing logo, visual identity, product and interior design that addresses the wants and likings of young consumers. Further Swapfiets deliver consistent key messaging delivering on exact needs and want of young consumers – a worry-free and fairly priced usage without a large down payment and maintenance issues. Swapfiets has chosen to communicate these messages mainly through social media and other digital platforms with high participation and engagement from young people. Finally, Swapfiets offers special discounts for students emphasizing the efforts to engage this particular consumer segment. The examination of Swapfiets brand inventory has likewise exposed potential weaknesses in the clarity of the Swapfiets slogan and name. The Swapfiets name could have difficulties on the Danish market and this will be explored further. Further, the Swapfiets products are generic though well-designed, trendy and of

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good quality. The products can be perceived as feminine and non-sporty which will also be further explored. In short, the brand inventory has exposed potential weaknesses in the Swapfiets brand name and product line and strengths in terms of consistency and continuity in Swapfiets efforts to win over young consumers.

Brand Exploratory In the brand exploratory part of this audit we will investigate what consumers think and feel about Swapfiets and the corresponding product category to identify sources of brand equity and future opportunities.

First, we will explore the brand awareness which is the first step to create brand equity. The brand awareness indicates the strength of the brand node or trace in consumers memory and this can be measured by testing consumers ability to identify the brand. To gain insights into the brand awareness of Swapfiets a survey has been conducted aiming to investigate consumer ability to recall and recognize the Swapfiets brand. The outline and the questionnaire of the survey can be found in the appendix p. 1-5. The survey collected data via SurveyMonkey and was shared on Facebook to my personal network which resulted in a small sample of 37 respondents with 41 % male and 59 % female respondents. 51 % of the respondents were between 15-24 years old. The sample size of course impacts the reliability of the results which is why these findings are not conclusive but exploratory.

Survey Results To test the consumers ability to recall Swapfiets, when given only the category as a clue, respondents were asked “What bike rental services do you know?”. 7 respondents (19 % of respondents) mentioned “Swapfiets”. 23 respondents or 62 % of respondents skipped this question or wrote “None”. This indicates a great opportunity for Swapfiets to penetrate and dominate the mind of the consumers in this category and further to establish the category. It is also noticeable that 5 out of 7 respondents who wrote “Swapfiets” when answering this question spelled it wrong. One respondent wrote “The one with the blue tire” while another wrote “… one that has a blue and white logo, but it is hard to read their name”. Both respondents are clearly referring to Swapfiets but are not able to identify the brand.

When asked “Do you know about Swapfiets?” 62 % of respondents answered “No” while 38 % of respondents answered “Yes”. Interestingly, more than one-third of respondents recognize Swapfiets when given the brand name as a clue. Keeping in mind that Swapfiets launched on the Danish market in 2018 this result is quite impressive. However, the relatively high share of young respondent might impact respondents abiity

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to recognize it. 62 % of respondents did not recognize Swapfiets indicating that they still have a long way to go in building brand awareness and thereby brand equity.

The survey results expose a lacking ability amongst consumers to recognize, identify and recall Swapfiets. A key finding from the brand awareness survey is that Swapfiets have a major task in creating awareness in the minds of Danish consumers.

Mental map To investigate the current perception and the brand image amongst Danish consumers a mental map...