Fanshawe CollegePrinciples of Advertising and Branding

Brand audit

Alex Gazer, Mackenzie Huber

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TABLE OF CONTENTS Zippo Brand Audit

ContentsTABLE OF CONTENTS ..............................................................................................................................1

BRAND ORIGINS .....................................................................................................................................2

KEY GROWTH STAGES ....................................................................................................3

BRAND ELEMENTS ...................................................................................................................................4

MARKETING MIX .....................................................................................................................................6

MARKETING MIX ACTIVITIES ....................................................................................................................8

MARKETING INITIATIVES .......................................................................................................................10

INVENTORY ...........................................................................................................................................12

COMPETITIVE/CONSUMER ANALYSIS ....................................................................................................13

BRAND ASSOCIATIONS..............................................................................................................................15

CONSUMER BASED BRAND EQUITY PYRAMID...........................................................................................17

BRAND EQUITY ANALYSIS ......................................................................................................................18

CONCLUSIONS/RECCOMENDATIONS……………………………………………………………………………………………………..19

REFERENCES………………………………………………………………………………………………………………………………………….20

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BRAND ORIGINS Zippo Brand Audit

BIRTH OF THE ZIPPO IDEA: Zippo Manufacturing Company was founded around 80 years ago by George G. Blaisdell, at the Bradford Country Club in Bradford, Pennsylvania. Upon observing his friend use an Austrian-made lighter, which was common of that era, a few ideas popped into Blaisdell’s head. Firstly, although the lighter was indeed functional, as well as efficient in windy conditions due to its design, Blaisdell concluded it was aesthetically unappealing; industrial. Requiring two hands for operation, and composed of a cheaply made exterior prone to damage, Blaisdell believed there was a better way. It was this commitment to innovation in both aesthetics and performance that provided a unique product that would catalyze one of the most equitable and iconic American brands.

GROWING THE DREAM: Not until 1932 did Mr. Blaisdell manufacture his first reinterpretation of the Austrian-made lighter. Aside from fashioning a more rectangular case, along with a hinged top that flipped on and off the case, much of the original design elements were kept. However the zippo differentiated through quality, and ease of use. The chimney design for example was kept due to its ability to maintain a flame in unfavourable conditions, however now could be operated single handily. What resulted from these innovations was an ergonomically designed, visually pleasing lighter. It wasn’t just the product itself that was innovative, but even the service. When the first zippo was produced in 1933, it was sold from the start for $1.95 with Blasdell’s “unconditional lifetime guarantee”; “It works or we fix it for free”. It’s arguably this innovation in not only product, but service and confidence that has made Zippo such an equitable brand.

ZIPPO AND AMERICA: Soon after Zippo had successfully achieved its first patent in 1934, Bradford’s Kendall Refining Company requested 500 Zippo’s and utilized them as a form of advertising by placing their logo on the lighters. This is hypothesized to be one of the first uses of Zippo for marketing purposes, which even today is a major component of the brand and the service they provide. By associating themselves with other companies, Zippo was able to reach larger market segments. Moreover, by associating themselves with alternate brands they could increase their own brands awareness and recognition, in turn effecting their brands equity. This decision to advertise via Zippo lighters helped to make them as iconic as they are today. However there is a far more historically significant event that Zippo has sewn its roots into; World War II. The Second World War played an integral part in the direction and positioning of the company in the worlds eye. When America entered the war, Zippo responded by ceasing all manufacturing for the purpose of consumers markets, and instead shifted its resources to strictly military production. This created a deep association world-wide with America and Zippo as U.S. soldiers who travelled globally were equipped with Zippo lighters. From America’s standpoint, Zippo managed to position itself as a patriotic, honourable brand, greatly increasing the brands equity through the consumer’s perception of the company. Simultaneously this military production also allowed them to become more financially sound, and therefore a more legitimized, credible company.

Abandoning the consumer market for the military market during this time allowed Zippo to achieve maximum production efficiency, catalyzing a more financially established Zippo Co.

Upon opening a plant in Canada, Zippo began to establish itself outside of America, increasing its reach to the consumers. This was Zippo’s first step to globalization

Although more of a promotional item, this represents the first time Zippo began differing from their typical product category. Although they had developed variations of lighters before, this was the first non-flame oriented product.

19

1919

19

1941

The establishment of the Zippo fuel plant was a benchmark in the companies’ expansion, it proved they were so reputable in the lighter industry they could now expand product offerings within that category with ease.

19The founder and creator of Zippo dies, but not before handing down his knowledge and philosophy to his children.199

Zippo was awarded a place in the Top 100 Marketers of the Year by Ad Age Magazine, well deserved after rebranding themselves to fit the trend against the cigarette industry; becoming multi-purpose portable flames, and collectors’ pieces rather than just lighters for tobacco products.

201Zippo consolidates its ownership over its European distributors in places such as; Austria, Benelux, France, Germany & Spain completing its transformation into a global brand.

Marketing analyses show the Zippo brand boasts a 98% recognition rate, meaning out of 100 people, 98 people are aware of the Zippo name and lighter without being taught. Evidence of how tightly Zippo has woven itself into pop culture.

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KEY GROWTH STAGES Zippo Brand Audit

AMERICA ENTERS WWII

ZIPPO CANADA

Initially utilized for the purpose of quality control, these codes have become a staple of authenticity for Zippo collectors and loyal consumers.

ZIPPO STARTS USING DATE CODES

ZIPPO KNIFE

ZIPPO FUEL PLANT

DEATH OF GEORGE G. BLAISDELL

TOP 100 MARKETERS

CONQUERING EUROPE

TODAY

(Zippo, 2015)

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BRAND ELEMENTS Zippo Brand Audit

Almost every aspect of Zippos brand is rooted into its origin: Lighters. Its creator is quoted saying he decided upon the name because he “liked the sound of it”, the very sound of the name rolling off your tongue is reminiscent of the sound a lighter makes when you flick it. It’s this deep meaningful association with Zippos and lighters in the eyes of the consumer that has made it such an iconic, renowned brand.

NAME As previously mentioned, the name Zippo is reminiscent in of the very sound lighters make when flicked, allowing a direct mental association with Zippo and their primary product category, lighters. Its short, rolls off the tongue and is easy to remember when recalling from memory. Blaisdell himself concluded that the name “possessed a ‘modern’ sound” (Zippo, 2015)

LOGO Zippo’s logo, is simply the word Zippo with a flame as a dot over the “i”. Encompassing the flame in the logo once again creates an association between the brand and lighters, or more accurate as of recently “portable flames”. This strong, deep connection between their brand and fire is what has kept them top of mind in consumers’ recognition.

SYMBOLISM The “i” in the logo is also representative of the side profile of a Zippo. Secondly, the simplicity of the logo is symbolic of the lighters themselves; simple yet effective.

PACKAGING Although there isn’t one specific packaging for Zippo lighters, the variety of elaborate encasements they come in due justice to the heritage of a simple, yet elegantly honourable brand. Other products may come in standardized, cheap plastic and cardboard packaging. Zippos however are not just lighters, they are keepsakes, or even heirlooms in some cases, and they are treated as such. Metal or leather encasements or embroidered pouches, anything

“Millions of people around the world make lighters, we only have six hundred fifty dedicated employees that can make Zippo lighters”- Zippo CEO Greg Booth

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representative of class or quality.

POSITIONING

The Zippo brand, as previously mentioned enjoys a recognition rate of both their brand and their flagship product (the lighter), of 98% (Zippo, 2015). This statistic leaves a pretty evident conclusion that they occupy a significant space in consumer’s mind as quality lighter producers. Having their roots in American history, they are also often thought of as a patriotic brand. However their positioning also holds a potentially dangerous setback. Due to their roots and association with the cigarette industry many people although aware of the brand name, are unaware whether or not the brand is still in business. The lighter business, along with the cigarette business is on a decline due to public health trends; there has been a 50% decline in American smokers since the 1950’s (Brown, 2014), and it is arguably the brands strong name and place it holds in history that has kept it alive through these times of change. However, new management has allowed the brand to progress into different subcultures other than smoking, such as music and motorsport (Learmonth, 2009)

VALUES Zippo’s values today maintain relatively unchanged since their conception over 80 years ago. It’s these values that hold them in such a high place in consumer minds. They are committed to simple, effective, and aesthetically pleasing products. Elegance is definitely a strong value held by the company, as well as confidence in their product and ability to meet the needs of the consumer. This is all evident by the guarantee still intact today, “it works, or we fix it for free”.

MANTRA According to Zippo’s website their mantra is: “build your product with integrity, stand behind it 100% and success will follow”. (Zippo, 2015) This mantra certainly has had an impact on the way the consumers have perceived the brand for years. The mantra is also significant because it is inspiring to employees and shows the drive of the brand. By inspiring your employees, you will inspire your consumers, and you will increase brand resonance. By applying the same mantra used for 80 years to new products adapted to a changing market, the brand is able to maintain their position as manufacturers of high-quality products.

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MARKETING MIX Zippo Brand Audit

PRICE Focussing primarily on the Zippo’s lighter category, the strategy the company seems to entail is product line pricing. By pricing products similar to one another in the same category based on perceived enhancements or differentiating features, the company can bolster its revenue. To accomplish this, Zippo’s lighter products are segmented into 4 different categories; Classic Windproof, Blu, Utility, and Candle flames, some of which consist of subcategories to further segment their pricing through perceived. The Classic Windproof lighters price ranges from $20-$40 depending on complexity style or designs. The price varies further to $40-$70 depending on the material used for the lighter casing. The “Blu” series lighters are set at a significantly higher price than their core benefit counterparts; ranging from $80-$150. Zippos utility barbeque style lighters, as well as their female oriented zippo artificial candles are their cheapest lighters which can be purchased for under $20.

PRODUCT Once again narrowing the analyses to the lighter product category; being that up until 2001 they were exclusively a one product manufacturing business; lighters (Silverstein, Zippo Reinventing an Old Flame, 2011). Zippos product has always been perceived as a high-quality, luxury product. They were and remain to be aesthetically pleasing, excellently functioning lighters. They were designed for ease of use, simplicity, and visual appeal. However, due to public health trends and the rapid decline of the cigarette market, Zippos product had to be repositioned in the consumers mind. Not simply as a lighter for cigarettes, but a multi-purpose flame, particularly for outdoors. This was effectively accomplished, due to almost every component being useful in survival situations. Flint for fire starting, lighter fluid, the metal case, there are countless documentations of how a Zippo lighter was used to assist in an emergency situation. Before branching out from the lighter category, Zippo also provided maintenance products for their products such as fluid, and flint. Zippo has recently had to tweak and tighten their patents after knock off versions of their lighter sliced their revenue by approximately 25%.

PROMOTION

The method in which Zippo entails to promote themselves is particularly unique. It can be argued that due to their 98% (Zippo, 2015) brand recognition rate, Zippo does not focus its efforts as much as it should into promotion. For the most part, the company has relied on their print, and online presence for a medium of reaching targets. However, this is not to say that the company does not actively engage in promotion, their methods are slightly more subtle, significantly cheaper, but evidently more effective. According to zippo.com, the Zippo lighter has featured in a surplus of over 1500 movies and theatrical media over the years (Zippo, 2015) which has resulted in a lot of free product placement. Movies ranging from classic spy, to war movies, and even superhero flicks, the lighter has been through and seen it all. This serves a dual purpose, firstly depending on the movie it features in, it can adopt the qualities and traits of the setting and characters, personifying the lighter to different consumers.

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Moreover, being featured in TV and movies means it isn’t necessarily viewed once, but many times over the course of a consumer’s life. Despite this effective and unique method of advertising, the changing market calls for a change of tactics. With the decline of the lighter market, and the recognition of their brand tied specifically to their lighter, Zippo needs to promote the products categories they are expanding into. Many people are still unaware that Zippo produces anything other than flame oriented products, which can be attributed to Zippo’s focus on their collectors, rather than obtaining new customers.

PLACE Zippo currently distributes their products in over 160 countries worldwide (Zippo, 2015). With large markets overseas, China currently making up approximately 13% (Brown, 2014) of its revenue through a distribution partnership with New Frontiers Ltd. However, in Canada, it is Hydes Distribution that is the distributor of Zippo products, providing up-to-date storage facilities and offer same day Canadian shipping within a 300 mile radius. (Hydes Distribution, 2013) There are multiple platforms Zippo utilizes however do get their product to their consumer. Online shopping is also massive component of Zippo distribution.

Blu Utility Classic Candle(Zippo, 2015)

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MARKETING MIX ACTIVITIES Zippo Brand Audit

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Integrated Communications

-"Share the Pain Campaign"-Harley Davidson

Channels-Hydges Distribution-New Frontiers Ltd.

Pricing-Product line pricing-Yearly collectibles

INTEGRATED COMMUNICATIONS

Zippo has utilized various means of integrating themselves with consumers to increase salience and resonance. One of their most significant and largest partnerships is with Harley Davidson, creating collectible pieces and exclusive biker oriented lighters and memorabilia. Their latest, and arguably strangest integration initiative; “Share the Pain Campaign” is a global, multi-platform campaign targeting 12-24 year old individuals who have lost their Zippo lighters (Sridhar, 2014). After research deduced that consumers often engage in online rants upon the loss of their Zippo, the company formulated a campaign utilizing a mascot; Jax ‘No Pain’ McFlame. Through this character, consumers can find condolences that have been produced from in-depth surveys conducted towards individuals who have experienced the pain of the lost trinket. This very same information can be accessed through the campaigns website via visual representations of global Zippo loss statistics. This entire campaign engages the consumers and further consolidates their product as a sentiment piece, with great personal value attached to the individual, solidifying resonance with established consumers and committed collectors.

PRICING The price strategy implemented by Zippo appears to be product line pricing. Using this method, the company is able to create perceptions of different levels of quality, benefit, or value in different products that they manufacture within the same product category. Depending on the materials used to make the case, or the complexity of or method used to create the design on the lighter, Zippo has varying prices to differentiate their lighters in terms of quality. However there are other factors at play pertaining to the going price of a Zippo lighter. Being such highly regarded collectors pieces, limited edition lighters are often released yearly to create a higher demand for the lighter, due to the limited supply, naturally, jacking up the price.

CHANNELS Being a globally distributed brand, naturally there are multiple channels utilized by Zippo to reach their markets. Two significant channels that Zippo has acquired over the years are: Ronson Lighters, and W.R. Case and Sons Cutlery Company (Vault, 2015). This proved to be beneficial in more than one way, eliminating a major competitor while simultaneously adding Ronson lighters to their product line. The acquisition of W.R. Case and Sons allowed for Zippo to begin their product differentiation into knives and other outdoor products. As previously mentioned in the timeline, 2013 saw Zippos takeover of their European distributor who headed distribution in: Austria, Benelux, France and Germany. (Vault, 2015) The Chinese market is still one of their most promising. Since entering the market in 1995 through a partnership with Asian importer New Frontiers Ltd., the market is quickly expanding at an annual rate of 10% (Vault, 2015).

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MARKETING INITIATIVES Zippo Brand Audit

ZIPPO ENCORE:

Zippo Encore is a marketing initiative set in place to capitalize on Zippos music market. The classic symbol of raising your Zippo in the air at a rock concert is being expanded upon via this initiative, tapping the music industry via social media. Zippos throughout the years have been featured in the music industry weather on album covers or even the sound of the Zippo “click” being sampled in songs (Zippo, 2015). Zippos have been for years a symbolic component of the rock and roll industry,

Zippo Encore Zippo Jeep

Zippo Social Media Share the Pain Campaign

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represented in all kinds of the genres media, many times even featured on Rolling Stone covers. The purpose of ZippeEncore.com is to “showcase the talents of undiscovered bands across the country” (Zippo, 2015). By more actively engaging this market the company is able to both promote itself and solidify its image as a “hip” and “cool” brand. The program entails more than 100 stops in 30 states orchestrating rock shows while simultaneously forming lasting connections with future consumers. (Poe,2014)

ZIPPO JEEP:

Beginning after WWII, Mr. Blaisdell hit the road promoting his lighters in the Zippo Car. Built for $25,000 and consisting of two giant Zippo lighters for the body and a neon light flame, the car was strictly a promotional stunt, travelling across country at parades and events (Studio Showroom, n.d.). However sometime in the 1960’s the car was lost, never to be recovered, until 2011. In 2011, Zippo revealed the Zippo Jeep at the NASCAR Nationwide Series, 100% custom, this new addition to the Zippo family once again will serve as the companies travelling promotional vehicle (Zippo, 2015). This choice in vehicle partnership is no coincidence, as part of Zippo’s rebrand and expansion into outdoor products, as well as both being all-American durable, and reliable (Zippo, 2015).

ZIPPO SOCIAL MEDIA:

Designed to engage today’s youth and raise its relevance in modern culture, Zippo spearheaded a strong social media campaign on multiple platforms to reach its target markets as well as associate the brand with subculture alternatives to smoking. Starting with Zippos iPhone app which has been downloaded 5 million times (Learmonth, 2009), they began to increase their online presence. Zippos Facebook page has 1 million likes, Twitter account 24.6 thousand followers, and Instagram 39.2 thousand followers respectively. Through their online presence, Zippo is able to inform their consumers of promotional events, sponsorships, and releases of limited edition collectible lighters. There is also a massive collectors market that can interact and communicate with one another through these online interfaces, exchanging collectibles, appraising products and discussing the brand in general.

SHARE THE PAIN CAMPAIGN:

“Share the Pain Campaign” is a global, multi-platform campaign targeting 12-24 year old individuals who have lost their Zippo lighters (Sridhar, 2014). After research deduced that consumers often engage in online rants upon the loss of their Zippo, the company formulated a campaign utilizing a mascot; Jax ‘No Pain’ McFlame. Through this character, consumers can find condolences that have been produced from in-depth surveys conducted towards individuals who have experienced the pain of the lost trinket. This very same information can be accessed through the campaigns website via visual representations of global Zippo loss statistics. This entire campaign engages the consumers and further consolidates their product as a sentiment piece, with great personal value attached to the individual, solidifying resonance with established consumers and committed collectors.

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INVENTORY Zippo Brand Audit

PRICELIGHTERS Classic

SlimReplica ArmorPipeBottomz UpBluUtility Candle

$25-$30$30-$50$25-$50$50-$80$20-$30

$30$70-$150$15-$20

$20ACCESSORIES Fuel Canisters, Lighter Pouches, Ash Trays

Knife Pouches, Knife PolishLighter Display, Knife Display, Knife Sharpener/Kit

$10-$15$10-$15$50-$80$15-$30

HYGIENE/ COSMETIC

Cologne, Perfume $30-$80

TOOLS Measuring Tape, Letter Openers $10

SUPPLIES Lighter Fluid, Butane, Flint, Tinder Sticks, Hand Warmer Replacement Burner, Pen Refill, Lighter Gift Kit

$3-$10

OUTDOORS Hand Warmers LanternsHatchetBarbequeBarbeque Accessories

$20-$30$90$80

$300$10-$50

KNIVES Steel, Bone, Stag, Wood, Exotic, Glass, Stainless, Leather, Chrome Vanadium, varying kinds of knives ranging from

$25-$200+

WRITING UTENSILS

Pen $5-$10

APPAREL Shirts, Sweaters, Hats, Cardigans, Jackets, Belt Buckles, Watches, Handbags, Wallets,

$100-$200+

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Brief Cases

COMPETITIVE/CONSUMER ANALYSIS Zippo Brand Audit

COMPETITORS:

SOCIETE BICPRODUCT classic, electronic, decorated and multi-purpose lighters

PRICE Low to Moderate; Between $2-$15

PLACE Sold to most of the world’s population, predominantly in Western Countries. 40% of sales coming from North America and 30% coming from Europe. Latin America, being BIC's fastest-growing geographical area, accounts for 20% of sales. Meanwhile, the Middle East, Africa, and Asia account for approximately 5% (Silverstein, BIC the Write Approach, 2009)

PROMOTION

BIC uses substantial advertising and promotions to reinforce the brand and to implant the rudimentary BIC philosophy of quality and value. While still taking advantage of the efficiency of local implementation, BIC has recently moved to globalise marketing and advertising to build the BIC brand as a single global identity. The "silent salesperson" is a crucial component of BIC's promotional strategy. The "silent salesperson" includes creative and eye-catching product packaging, in store displays and promotions. All designs are built around the BIC logo, which is always linked to current advertising themes and campaigns, and is used highly to their advantage.

POINTS OF PARITY POINTS OF DIFFERENCEstylish and multi-purpose lighters, massive brand awareness, strong association with cigarette market, high safety

BIC manufactures lower quality lighters, has greater market saturation. BIC mass produces lighters

CLIPPERPRODUCT Clipper manufactures flint, electronic, metal, and utility lighters.

PRICE Low to Moderate; Between $2-$15

PLACE Flamagas S.A are the brand owner and manufacturer of Clipper Lighters. Clipper UK Ltd is a subsidiary and the exclusive distributor for Clipper products in the UK and Northern Ireland. Manufacturing plants are based in

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Barcelona, Shanghai, and Chennai. (Clipper, 2013)PROMOTION Clipper has many promotional campaigns. "The Super Lighter Concept" is one

of their biggest campaigns, which claims that the Clipper lighter has the highest safety level, and is good for the economy and the environment. In addition, "Roll Your Own in the Clipper Way" is another campaign which showcases the tobacco pressing tool that is included with the lighter. Lastly, Clipper has a "Collection for Everybody". Clipper finds inspiration in things such as nature, music, sports, games, the 70's etc. With such a variety of design, Clipper claims to have the lighter that will suit you.

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POINTS OF PARITY POINTS OF DIFFERENCEcollectable and multi-purpose, minimum product line, high safety, strong association with cigarette market

Points of Difference- lower quality, mass produced, greater market saturation

ST DUPONTPRODUCT Dupont manufactures traditional, innovative, collective, elegant, modern, and

luxurious lighters. PRICE High to Very Expensive; Between €99 - €1500

PLACE Dupont sells its products through its stores located all over the world (Africa, Asia, Central America, Europe, The Middle East, North America, and South America). The ST Dupont headquarters is based in Paris. (S.T. Dupont Company Description, n.d.)

PROMOTION Dupont's press coverage is impressive. They've had a 30 second spot on Extra!, features in several celebrity blogs, and features in several publications such as the Huffington Post, Us Magazine, Karin Salkin's Entertainment News, and Paris Post. Also, Dupont has made features in online news shows such as Gossip TV and Eligible TV. (S.T. Dupont, 2014)

POINTS OF PARITY POINTS OF DIFFERENCEcollectible, high quality, strong association with the cigarette market, stylish

wider product category, luxury brand

PERCEPTION S AGAINST COMPETITORS:

With competitors such as BIC and Clipper having such great market saturation, Zippo is put at a bit of a disadvantage. Zippo has immense brand recognition which substitutes for having such low market saturation. Furthermore, Zippos competitors have a much broader product line, generating more revenue for the competitor companies as a whole. In addition, compared to brands such as BIC and Clipper, Zippo manufacture their lighters at a much lower rate. Each Zippo lighter goes through an assembly line process as opposed to being mass produced with highly technological manufacturing machines.

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BRAND ASSOCIATIONS Zippo Brand Audit

PRACTICAL The practicality of the Zippo lighter is evident as the design of the Zippo Lighter is equivalent to how it was 80 years ago, with only minor improvements made. The Zippo lighter is windproof and is able to remain lighted in almost any adverse weather conditions. Zippo is known for its "It works or we fix it free" policy, which means that if

ZippoStylish

Practical

Quality

Collectible

Historical

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your Zippo lighter is broken, it doesn't matter if its 10 or 50 years old, Zippo will repair it for free. There has been many stories archived in the Zippo company about how the light, heat, or case of a Zippo lighter has saved the day or saved a life. (Zippo, 2015) There is also many different practical purposes for the use of the Zippo lighter other than smoking.

HISTORICAL/COLLECTIBLE

The history behind the Zippo lighter is fascinating. There is a great correlation between Zippo and World War II as all manufacturing of Zippo lighters were dedicated to the U.S. military, beginning in 1939. (Zippo, 2015) As a result, Zippo has been established as an icon of America throughout the world. Not only did the brands recognition and reputation increase, supplying the military resulted in full production for the plan, enabling Zippo to financially grow and become a feasible company.

QUALITY Zippo has a lot of confidence in the quality of their lighter. As previously stated, Zippo is known for its "It works or we fix it free" policy, which clearly displays the amount of confidence Zippo has in its own product. Zippo lighters are reliable and long-lasting. This is evident as there are still Zippo lighters that were manufactured in 1950's and are still in circulation today. In addition, Zippo manufactures other products such as camping gear and accessories, which are top of the line in their category.

STYLISH There are multiple factors contributing to the perception that BIC is a stylish lighter. As previously stated, the Zippo lighter has been featured in over 1500 TV shows, movies, and stage plays. (Zippo, 2015) In each form of entertainment, the Zippo lighter is held by different actors or actresses, giving the lighter a new approach depending on the context it’s being used in. Much like Clipper, Zippo finds inspiration in day to day life. Many people who own Zippos do not smoke and do not have a Zippo for an actual purpose other than to collect and trade them.

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CONSUMER BASED BRAND EQUITY PYRAMID Zippo Brand Audit

Salience

Globally Renowned Brand, WWII saw Zippos global, famous windproof flame, household name, recognizable design,

imitations

Judgements

Stylish, High Quality, Reliable

Feelings

Exclusive, Collectible, Sentiment

Performance

Visually Pleasing, Well Functioning, Free

Service, Survivability

Imagery

Classic, Historic, Patriotic, Stylish, Elegant, Luxury

Resonance

Committed Collectors

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BRAND EQUITY ANALYSIS Zippo Brand Audit

SALIENCE Zippo is a unique line of lighters that first introduced the switch lighter. Zippo sells a wide range variety of lighters of all styles that impacts their consumers by giving them the ability to collect and create stories that tell a special story behind each lighter. Besides lighters being Zippo’s strongest brand element, Zippo also offers other items such as; outdoor products, knives, supplies for lighters and writing, and last, accessories for lighters, knives, fragrances for men and women, displays for lighters, watches and clothing. Zippo believes the most important market segment to reach is not necessarily those who buy the most products, but those who represent a future for their company mainly being young men from 18 to 24. They have appealed to this younger demographic by being very proactive in social media, focusing on music and outdoor events, and tying in with radio stations. Zippos brand name is widely known and as evident by their high brand recognition rate it is clear their salience in that category is extensive. Another factor that implies the high salience of Zippo into the market is the high level of imitation and knock off products. Because the Zippo lighter is such a highly regarded and sought after brand, manufacturers often try to imitate the design as closely as possible without breaching patent in an attempt to syphon some of Zippos consumers.

PERFORMANCE The performance of the Zippo lighters have long been regarded as high quality, durable, wind-proof flames. On top of function, the lighters are built to be a fashion statement as well. The quality of the lighters are evident by the confidence the company has maintained in its product since conception; “it works or we fix it for free” being their lifetime guarantee drives home the fact that their lighters are reliably functioning products. Aside from every day and intended use, the lighters ability to perform exceeds its capacity to simply light things on fire. There have been many fabled events where a Zippo has come in handy during a life or death scenario. From stopping a bullet, to cooking soup in a helmet in the trenches, to providing crucial light in dangerously dark situations (Pinup Lighers, 2012). Military history has played a big part in the myth of the Zippo, that weather true or not, has bolstered the public’s perceptions of the Zippos capability to perform

IMAGERY Zippo’s brand invokes a number of feelings upon mention. One of the most prominent is their all American roots, which they wear on their arm. Their stylish, modern design is also indicative of a masculine individual, instilling a resonance with the male consumers, and all things masculine. However, it isn’t only the rugged man that the lighter manages to represent. Through product placement over 1500 movies and television shows (Zippo, 2015), it has managed to establish itself as a classy, elegant man’s lighter.

JUDGEMENTS Zippos have always been regarded as instruments of style, and quality. Another source of Zippo’s strong brand equity is their lifetime warranty. The company claims “It works or we fix it free” (Zippo, 2015). A customer can either purchase a lighter that will break in a few days, a lighter that doesn’t have a lifetime guarantee, or purchase a Zippo with this is lifetime guarantee. This is a huge contribution to Zippo’s brand equity because customers are looking for

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products that not only work properly, but that will last for a long time. Not only is having a lifetime guarantee a large contribution to the brand equity, but also gives Zippo a competitive advantage over their competitors. The quality of the Zippo lighter allowed the company to expand into international markets, now dominating two thirds of the market (Silverstein, Zippo Reinventing an Old Flame, 2011). This comes with the brand’s exceptional identity and positive word of mouth advertising.

FEELINGS The exclusivity of Zippo lighters are evident through the history and quality of the brand. Zippo offers customization to their lighters allowing them to become one of a kind. Furthermore, the Zippo lighter has made appearances in magazines such as the Rolling Stone, adding exclusivity to the brand. Most people who own a Zippo nowadays do not use the lighter for smoking, but collect the lighter based on several factors such as style and heritage. Sentimental value in Zippo lighters is also evident through the history and quality of the brand. Zippo lighters dating as far back as World War II are still in circulation, with powerful and captivating engravings and designs.

RESONANCE We can also look at the fact that Zippo lighters are collected by some people. This shows the exceptional quality and appreciation that customers have towards the lighters. Having customers collect Zippo lighters adds extreme value to the brand.

MEANINGFULNESS;

Zippo is one of the most recognized brands for lighters. Zippo’s performance gives customers the ability to customize, and collect. The logo alone reflects quality and exclusivity that tells their users a Zippo lighter isn’t just a lighter, it’s a piece of reusable, historical, customizable piece of art. Since Zippo’s main focus has always been lighters, they have continued to push beyond just reliable build quality and external art. On top of their historical value, Zippo lighters also possess strong sentimental value between them and the consumer. Due to the extent of customization, and the limited edition availability of certain types of lighters creates a strong attachment between the user and the tool.

RESPONSE;

Zippo wants its consumers to judge their products not on perceived quality but actual quality. Each lighter is built with a unique uni-body construction paired with that classic switch lighter experience with every light. To continue strengthening its products with its core consumers, Blattner Brunner (Marketing PR and SEO) helped create and market Zippo’s Multi-Purpose Lighter (MPL) which was used as a huge rebranding image for Zippo in 2005. This lighter was also designed to appeal to a new user segment being woman and non-smokers. The main purpose to launch the (MPL) lighter was creating a powerful parent brand while leveraging and capturing a perception of quality and credibility. As a result, new channels of distribution were made expanding retail presence by 15% and boosting sales by 10%. Zippo allows consumers to build a sense of likability and trustworthiness by providing owners with free repairs ever since 1932.

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CONCLUSIONS/RECOMMENDATIONS Zippo Brand Audit

WIDEN PROMOTION:

After completing the brand audit and the research it entailed, a few key factors holding back the brands progression became evident. The brand has relied far too long on their brand awareness, not capitalizing on marketing and advertising possibilities for their expanding product line. Having been a single product manufacturer for so many years, many people today still remain unaware whether or not Zippo manufactures other products, or even if they still produce lighters at all. A television ad campaign has yet to be implemented by Zippo, probably due to their high presence in movies and television show. However the brand could stand to benefit from an advertising or promotional campaign designed to inform consumers of their expanding product offerings, and how their established values and product capabilities translate well into the outdoor market in which they are attempting to expand. The promotion that is in place, Is oriented towards existing consumers and loyal collectors, pertaining to specifically the lighter category. The promotional initiatives in place should widen their relevancy, attributing to more of their products, establishing loyalty and strong resonance with more than just their lighters, which would create more revenue in more sustainable markets not associated with smoking.

WIDEN MARKET:

Zippos focus seems to be oriented to consumers that are already established and loyal. An example of this is the “Share the Pain Campaign”, specifically tailored to avid collectors and long-time consumers. However, if Zippo were to focus on penetrating different market segments they could tap into the active living trend, bolstering revenue and shifting source of equity to a sustainable market and favourable associations. Rather than associating Zippo with lighters and smoking, a better effort should be made to promote Zippos outdoor products so that active individuals who engage in that type of lifestyle will better resonate and associate themselves with the brand, and become loyal consumers themselves. From that point the newly acquired consumers can be transferred to the promotional initiatives meant to sustain and meet the needs of long-time loyal consumers. Expansion should be the priority for Zippo at this point, and an excellent way to do this would be to advertise their expanding product categories on their widely popular lighters. By using their large brand recognition in the lighter category and their deep awareness in American culture in general, Zippo should be able to transfer its positive associations and judgements and stretch them over more diverse categories. Sponsorship and partnership of different outdoor brands would also be wise to further affiliate themselves with the active living market, companies such as Coleman, or Swiss Army would be beneficial with their recent expansion into camping supplies. They would further coincide with Swiss Army due to both having deep American Roots.

DISPOSABLE LIGHTERS:

A final recommendation is for Zippo to directly combat BIC’s share of the lighter market. Producing a cheap, disposable lighter would be inexpensive for Zippo, and would easily sell simply because of the brand name attached to it. This would also increase revenue greatly with people being able to buy Zippo brand lighters at everyday affordable prices. This would consolidate their hold over the lighter industry and would strategically combat a competitor much like their acquisition of Ronson for the purpose of elimination from the market.

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