Brand Lifespan & Marketing Strategy Shift

• It is important to move from monoculture to microcultures to drive relevance and growth in today's society

Introduction

• Marketing historically focused on top-down relevance through monoculture, a method now considered outdated
• Rival's mission involves documenting successful challenger brands that grow differently in disrupted categories
• The goal is to instruct modern marketers to create brands that endure

Declining Brand Lifespan

• Brand lifespan is decreasing
• Ernst & Young reported that the average lifespan of an S&P 500 company has dropped from 67 years in the 1920s to 15 years today
• A McKinsey study projects that 75% of S&P 500 companies will be gone by 2027
• Relevance is challenging businesses, culture has shifted, and brands must create meaning with consumers
• Brands used to control culture via seasons, retail calendars, TV, recipes, and rituals (like Coca-Cola and Christmas or De Beers and diamond engagement rings)

Rise of Microcultures

• Monoculture and mass appeal are outdated
• Culture is now dictated by niche interests and microcultures
• Microcultures gain traction and disrupt conventional ways of thinking and acting
• They also promote the adoption of trends on a wider scale
• Microcultures should not be mistaken for simple trends
• 91% of adults aged 18-25 do not think mainstream popular culture exists
• Consider real estate and tourism catering to Pickleballers, or Coastal Grannies

Characteristics That Define Microcultures

• Sense of community emerges
• Distinct identity develops
• Shared values and norms arise
• Common interest are created
• Symbols and language are often used
• Shared artifacts are often traded
• Cultural production like creating their own content has become popular
• Fluid and evolving

Microcultures' Impact

• Marketers must pay attention to microcultures
• Microculture communities influence trends
• Connecting with these groups unlocks brand relevance and meaning for brands
• Understanding microcultures is key to growth

Transformation of Marketing

• Communities have been discussed for years
• Consumer-oriented community consists of groups with parallel interests
• Generational Perspective
• Gen Z and Millennials born online identify more with online groups than individuals in their real lives
• People believe communities understand them more than the people they live with
• Communities provide meaningful connections and a sense of belonging
• People spend more time with these communities than with people in their physical lives
• Microcultures offer outlets for building identity, self-expression, creativity and belonging

Paradox and Fragmentation

• The marketing view shows that the world is splintered, with audiences spread across media channels
• Through the lens of microcultures, the world represents more communities and interests than ever before
• Scripted shows annually in the US went from around 200 to close to 600 in recent years
• Romantic Goth, Dark Academia, Boho, Cottage Core, Coastal Granny, and Classic Prep are trending simultaneously, with each having a distinct community

Shifting Role of Marketing

• McKinsey's paper, A better way to build a brand: The community flywheel, showcases how microculture communities have changed the role of marketing
• Brands gained presence through mass media, then tech and data unlocked personalization
• Marketers can now connect with consumers in their communities to generate emotional resonance

How Brands Have Gained Presence Has Evolved

• Mass Media: Solve for reach with targeting
• Personalization: Solve for effectiveness with context
• New Era: Solve for cultural influence

Brand Interaction With Communities

• McKinsey recommends that brands solve for influence
• Brands should participate in communities by reflecting the community and sparking creativity.
• The Kamala Harris campaign adopted Taylor Swift-themed friendship bracelets, raising over $1M
• Airbnb offered a free stay in the life-sized Malibu Barbie Dream House

Microcultures: A Case for Commercial Growth

• Authenticity is critical for brands to connect with consumers
• People are inclined to advocate and be loyal to those that are genuine and true
• Microcultures help build meaning with whole communities, not just demographics
• Microcultures push past broad indexes of interests
• They offer fresh methods for brands to connect authentically, moving past conventional advertising
• Collaboration with Cactus Plant Flea Market increased McDonald's traffic by over 30% during that period, people resold the toys for thousands of dollars

McDonald's Case Study Con't

• Nike and McDonalds have successfully connected with many subcultures
• Connections must meaningful
• Consider Clogcore and the popularity of Crocs
• Engagement often presents itself by way of collaboration
• Engagement presents opportunity for self expression
• "It propelled Crocs from the brink of bankruptcy to more than $4 billion in revenue."

B2B Community Innovation

• Automotives can also use microcultures
• Use developer communities to shape product roadmaps by monitoring IT admin forums and tracking industry-specific LinkedIn groups
• Content Strategy and Thought Leadership
  • Mine industry-specific forums and conversations for relevant topics
  • Analyze discussions in professional associations
  • Track conversations in specialized LinkedIn or Reddit communities

Infrastructure Development

• Develop a dedicated space for power users
• Build certification programs that promote community
• Build user groups around specific use cases
• Use insights from your target cultures
• Provide sales teams with targeted content

Changing Planning Strategies

• Avoid outdated demographic models such as "Millennial Moms"
• Focus on micro cultures which provide more useful insight
• Understand influencers
• Understand passions
• Understand trends by highlighting cultural mainstays

Harnessing Microcultures for Growth

• A Microculture-based view of ideal customer profiles (ICPs) enriches brand and activation strategies
• Microcultures have the potential to fuel more original, meaningful content strategies
• Content is also more responsive if approached from the direction of micro cultures
• Vegan microcultures inspire the food industry regarding new food innovations

ROI of Microcultures

• Media planning and paid media teams push back on microcultures
• Effective reach is essential for micro cultures
• Engaged groups present a golden opportunity for deeper levels of resonance and effective reach
• Highly engaged groups present a golden opportunity for media to resonate on a deeper level
• Authentic insights can yield more impactful, emotionally relevant content which has higher ROI
• Microcultures can test which cultural trends might have broader appeal by using low-investment, rapidly iterated content for paid campaigns

Testing And Self Selection

• Allows marketers to test their creative approach
• It is better for an audience to self-select content based on their values, language, and humor
• Marketers can enter the conversation and engage consumers

Engagement and Kinship

• Microcultures provide valuable audience insights
• They can highlight opportunities and create a springboard to reach a broader audience
• Optimization comes from strategy and creative teams, not ad repetition
• LEGO is identifies a fan base that enjoys engaging and working with LEGO, leading to a 27% increase in revenue (2021) and 17% the following year
• Brands can feature people from subcultures

Conclusion: Key Takeaways

• Microcultures are multiplying due to social media platforms
• "By unlocking ways for marketers to better understand and reflect their consumers, microcultures unleash all aspects of brand relevance, from authenticity and adaptability to emotional engagement, cultural sensitivity and innovation."

Develop and Deploying Microculture

• Devising a brand strategy that reflects shifts in culture
• Building media planning and buying around microcultures
• Leveraging relevant trends and humor
• Deploying social tactics rooted in a cultural understanding
• Applying insights from microcultures and interests

The text suggests brands are declining due to outdated marketing. Rival aims to help brands navigate cultural shifts. The document advocates for understanding microcultures instead of individuals, and criticizes traditional top-down marketing. Modern marketers must align with microcultures to build enduring brands.