Branding that reaches the heart -It’s a role in fulfilling emotional value-

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What is the key "value proposition" for a brand to be chosen by customers? Citing a car as an example, its basic performance, such as traveling, stopping, and turning, represents its "functional value." Conversely, the exhilaration felt when the driver presses the accelerator pedal can be described as "emotional value." The topic of this third issue is "emotional value." We asked Atsuro Yamada, President and Representative Director of Gramco, about the essentials of branding that resonate with people’s hearts and minds.

The world is shifting toward the idea authenticity is key to fostering trust.

-- First of all, we chose this topic due to a growing interest in "emotional value" observed in recent years as a result of Gramco’s website access analysis. Why do you think "emotional value" is attracting so much interest?

Yamada

The word "value" is widely used and not limited to branding. I believe the reason behind this is that people have begun to seriously consider what true value is.

In fact, we belong to a generation where everyone, including the youth, is in search of something valuable, a trend that seems to have been further accelerated by the COVID pandemic.

By the way, functional value refers to the level of perfection achieved in terms of performance and quality. With functional value as a given factor, emotional value represents the pleasure and added value that one derives from using or possessing the object. It’s something you can be proud of by acquiring, or something that makes you feel secure. It is often the case that a product is chosen for its emotional value, even if it does not differ much from others in terms of functional value alone. This may be attributed to the power of the brand.

So emotional value is predicated on such valuable things. If we can appeal to people with emotional and functional value, and if everyone recognizes that value, then we can say that it is the real thing.

-- Can you tell us the difference between "Purpose" and "emotional value" based on brand concept definitions?

Yamada

First, let me explain the value proposition, which is the value derived from functional and emotional aspects that the brand is committed to providing to its stakeholders. It can also be called the unique advantage that differentiates the company from its competitors.

Purpose, which is also referred to as raison d'être, is "the essential reason why a company or organization exists and operates." In other words, the focus is on this "why" of business or corporate activity. Incidentally, while a vision represents, for example, what the company in question envisions itself to be in five or ten years, a purpose is not so much about the future as it is about how it should be "now."

In comparison to the value proposition, which is more concrete, purpose is slightly more abstract in terms of its stance toward society. The key is to demonstrate that we must contribute to society and people through our business. It is not a statement of how we want to be in the future. It reveals why we exist, operate, and serve the world "now." It is "why we exist" and "why we do." And as a fact, it must be accompanied by the "practice of purpose."
We are planning to publish a book about purpose next spring, so I hope you'll give it a read if you are interested. This sounds like an advertisement. (Laughs)

Japanese companies need to express their emotions more. Customers should pursue experiences that make them say Wow!

- Let’s shift the focus back to emotional value. Now that you have mentioned it in relation to purpose, are there any other strongly related items in the brand concept?

Yamada

The final decision to purchase or use a brand will increasingly be influenced by empathy with the purpose set forth by a company. Then, as the purpose becomes more concrete, we arrive at the value proposition. This constitutes "what we provide." What makes the value proposition stand out even more is the emotional value, assuming, of course, that the functionality is in place.

Here is an example: In one project, we conducted a visual audit of a global hotel brand. A visual audit is an analysis of the style of each brand, such as the way it is presented in communication and its use of color, based on the information available to the public. As a result, there are brands, especially foreign ones, that instantly convey through a quick glance that their hotels offer a great experience, are thoroughly luxurious, or have an extremely emotionally compelling approach. On the other hand, Japanese brands are more modest, bringing to mind the soft-spoken quality of Japanese culture.

While this is one of Japan’s positive characteristics, it should not become a disadvantage when trying to attract customers domestically and globally. When we create a brand concept, we highlight the emotional value in the value proposition and verbalize the "personality" (how we act) that symbolizes the "uniqueness" of the brand. However, I believe that a major issue that Japanese brands face, regardless of industry, is how effectively they can adopt an approach that stimulates the emotional senses based on these brand aspects.

When you delve into the emotional value of a product with vivid emotional expressions, what kind of experiences will make the customer say, "Wow!"? What kind of experience will move them to tears of joy? We need to reflect on these questions more intently.

Patagonia’s "Save Our Home Planet" No-Replacement Campaign

-- Continuing, please give us examples of companies that are incorporating emotional value into their practices.

Yamada

One is Patagonia. As you all know, it is an American outdoor brand that also focuses on environmental conservation. They revamped their corporate philosophy (mission statement) in 2019. The new philosophy is "We're In Business To Save Our Home Planet." It was previously, "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis," which had been their philosophy since 1991.

Reference: Patagonia website
https://www.patagonia.com.au/pages/our-mission

The new philosophy is not so much a mission statement in terms of content, but rather a statement of "why we exist," so it entirely fulfills the qualifications of a purpose. Some people have also reacted to this by saying that it is Patagonia’s purpose. Perhaps we use the word "mission" because the concept of "purpose" can be difficult to grasp, but there is no doubt that it is ultimately the definitive statement of the meaning of existence. Incidentally, there is a concept called a "purpose-like mission ," and some Western companies adopt a similar approach. The same holds true for Google.
One of the initiatives to put this new philosophy into practice was the "Worn Wear (much better than new) Campaign." They believe that it is in the best interest of the earth for people to keep the clothes they possess for as long as possible, so they repaired any garment, not just Patagonia products, that was brought in for free. You can see various examples of this by searching the hashtag #wornwear: they are filled with the joy of being reborn as one-of-a-kind clothing, rather than simply being repaired and made functional.

Extending the life of clothing rather than encouraging people to replace it with new clothes contributes to "saving the earth, our home," which is said to be an initiative that helps acquire new Patagonia fans. It has become a "practice of purpose" (well, they call it a mission statement) that can no longer be measured by the conventional scale of sales promotion and the like. I think this is what all brands will be doing from now on. I'm also thinking of buying second-hand clothes in Shimokita from now on. Seriously.

Mitsubishi Pencil’s Strategy EMOTT, a felt-tip pen that appeals to emotions

-- What are some other examples of successful appeals to emotional values?

Yamada

Mitsubishi Pencil’s 2019 felt-tip pen, EMOTT, seems to have been a hit because of its sales strategy, appealing to emotion as well as function. Traditionally, felt-tip pens and markers are sold in gradations on the sales floor. In this case, the company started off with a set of 5 colors in 8 color groups, each named to reflect the concept behind the combination. For example, "candy pop colors (heart-fluttering, new but nostalgic shades)" or "vintage colors (calm, deep shades)." In this way, the "worldview" of each color was conveyed clearly, which seems to have won the empathy of buyers.

Around 2016, when the development of EMOTT began, more and more people, especially young women on Instagram and other social media sites, started documenting their schedules and to-do lists in notebooks or planners using writing instruments and sharing them online. Against this market backdrop, the white-based design, which was considered taboo due to its tendency to get dirty, was embraced as a way to achieve a "personal touch" and became a hit.

Of course, the power of Mitsubishi Pencil’s Uni corporate brand and the technological expertise cultivated over the years have made this a success story, but conveying only functional aspects such as "good writing quality," "no smudging," and "unparalleled fineness" would have made it challenging to differentiate the products from its competitors. I think this is a good example of how the pursuit of emotional value has resulted in a hit.

B2B companies should actively promote their emotional value in their recruiting activities

-- Thank you very much. Now that we have seen a series of B2C examples, how can B2B companies leverage emotional value? Please let us know.

Yamada

This is especially important while recruiting. I think it is very important to be able to demonstrate a sense of self-achievement during the hiring process. We need to delve into this emotional value even in B2B companies in order to firmly convey how much we can improve ourselves in our work and, beyond that, how much we can exercise our influence and contribute to society.

For example, there is a company called Shinano Kenshi, which manufactures motors and introduced ASPINA as its corporate brand in 2019. Gramco assisted in the development of the corporate brand name and logo, as well as a series of other branding activities. ASPINA incorporates the word "SPIN" in the middle to reflect its business; I think it has succeeded in conveying the corporate image emotionally through the use of dynamic key visuals with movement inspired by the brand name. Thanks to this, the company seems to have a good reputation in terms of recruitment.

The key point is that of brand facts. Brands grounded in truth add depth to emotional value.

-- Finally, what do you think is important for communication that enhances emotional value?

Yamada

Ultimately, the facts of the brand. I believe that establishing a brand foundation based on truth and that transmitting emotional value in conjunction with this foundation will add depth to the brand. Brands built this way are strong. If a company can differentiate itself from its competitors and connect with people’s hearts, it could foster a strong emotional bond with its fans, and once that bond is formed, the relationship with them will last for a long time.