Louise Enoksson & Elin Larsson
The Role of a Flexible Brand Identity in a Dynamic Market
A Multiple-Case Study on Swedish Coffee Brands
Business Administration Bachelor’s Thesis
15 ECTS
Term: Fall 2020
Supervisor: Jana Huck
Acknowledgements
We would like to express our gratitude towards our supervisor Jana Huck at Karlstad University for her expertise and guidance during the process of writing our thesis. A special thanks to our respondents for taking their time to participate in our study; without you, this study would not have been possible. Lastly, we would like to thank our peers and opponents for their helpful and constructive feedback in the thesis seminars.
Louise Enoksson & Elin Larsson Karlstad University, January 22nd, 2021
Sammanfattning
Att driva framgångsrik business innebär ett behov av en tydlig och stabil varumärkesidentitet, vilken är en del inom varumärkeshanteringen (Aaker, 1996;
Kapferer, 1992, de Chernatony, 1999). Det är föredömligt att hålla sig till varumärkets grundvärderingar och traditioner, men kan även vara fördelaktigt att bedriva en mer flexibel varumärkesidentitet för att kunna anpassa den till marknadstrender- och utveckling. Det kan vara om än mer viktigt om varumärket verkar på en dynamisk marknad (da Silveira, 2013; Eisenhardt & Martin, 2000).
Den här studien syftar till att förstå och vidare beskriva innebörden av en flexibel varumärkesidentitet på en dynamisk marknad, och detta utifrån ett företagsperspektiv. Den kvalitativa studien utfördes genom en induktiv ansats, med datainsamling från två olika företag på den svenska kaffemarknaden.
Sammanlagt har fem anställda inom två svenska kaffevarumärken har intervjuats.
Den empiriska datan visade på att det är viktigt att jobba med varumärkesidentiteten för att vara relevant på den svenska kaffemarknaden.
Faktorer och intressenter, såsom konsumenter, dagligvaruhandeln, kaffebutiker och kaffets ursprung, nämndes upprepat. Trender och svängande kaffeintresse samt kommunikation och varumärkestransformation var också centrala aspekter.
Den empiriska datan har analyserats och jämförts med tidigare forskning men har också utvecklats och vidare diskuterats.
Sammantaget syftar studien till att diskutera koncepten och den empiriska datan och syftet har brutits ned i två forskningsfrågor: 1) Hur kan företag arbeta med att transformera sin varumärkesidentitet? 2) Hur kan en flexibel varumärkesidentitet vara fördelaktig på en dynamisk marknad? Utifrån analysen drogs slutsatsen att den svenska kaffemarknaden är “moderately dynamic” och fördelarna med en flexibel varumärkesidentitet är att den kan anpassas efter marknaden och dess trender, så länge grundvärderingarna tas i beaktning genom förändringarna.
Abstract
Conducting successful business requires a clear and steady brand identity, which is a part of brand management (Aaker, 1996; Kapferer, 1992, de Chernatony, 1999). Sticking to the core values and the traditions of the brand is beneficial.
However, it seems advantageous to possess a flexible brand identity for the brand to be able to adapt to market trends and development. This could be of even more importance if the brand is existing in a dynamic market (Eisenhardt &
Martin, 2000). This study aims to understand and further describe the role of flexible brand identity in a dynamic market, from a corporate point of view. The study was made according to an inductive approach of qualitative research, which enabled data collection from two case companies. The Swedish coffee market was chosen as the case market. Hence, five in-depth interviews were conducted with people working for two established coffee brands in Sweden.
The empirical findings showed the importance of working on the brand identity to stay relevant in the Swedish coffee market. Factors and stakeholders such as consumers, retail, shops, origin of the coffee, changes in consumer interests, and market trends were mentioned. Communication, and brand transformation, also appeared to be important factors within the study. The empirical findings have been analysed in comparison to the previous research on brand identity and dynamic markets, as well as further developed and discussed.
Altogether, the study aimed to discuss concepts and the empirical findings, and by the inclusion of the research questions: 1) How do companies work on transforming their brand identity? 2) How can a flexible brand identity be favourable when existing in a dynamic market? In conclusion, the Swedish coffee market appears to be moderately dynamic, and the benefits of a flexible brand identity is the ability to adapt and adjust for market trends, as long as the core values are taken into account during the changes.
Keywords
Brand Identity, Flexible Brand Identity, Brand Transformation, Brand Management, Moderately Dynamic Market, Adaptation, Consumers, Consumer behaviour, The Swedish Coffee Market, Communication.
Table of Contents
1. Introduction 9
1.1. Problem Discussion 10
1.2. Purpose 12
1.3. Research Questions 12
2. Theoretical Framework 13
2.1. Brands and Brand Management 13
2.2. Brand Identity 14
2.2.1. Brand Identity Frameworks 15
2.3. Brand Transformation 16
2.4. Dynamic Markets 18
2.4.1. What Is a Market? 18
2.4.2. The Dynamic Market 18
2.5. Consumer Behavior 19
3. Method 21
3.1. Research Approach 21
3.2. Data Collection 22
3.2.1. Empirical Data Sources 22
3.2.2. Literature Review Process 22
3.3. Interviews 23
3.4. Interview Guide 24
3.5. Analytical Approach 25
3.6. Validity 27
3.7. Reliability 28
3.8. Research Ethics and Confidentiality 29
4. Empirical Findings 30
4.1. Brand Flexibility 30
4.1.1. Static Components 30
4.1.2. Adaptive Components 31
4.1.3. Reasons to Have a Flexible Brand 31
4.1.4. The Risks of Damaging the Brand 32
4.2. Factors Affecting the Brand 33
4.2.1. Consumers 33
4.2.2. Environment 34
4.2.3. Horeca and Retail 34
4.3. Communication of The Brand 35
4.3.1. Internal Communication 35
4.3.2. External Communication 35
4.4. Transforming the Brand 36
4.4.1. The Process of Transforming the Brand 36 4.4.2. Strategies for Transforming the Brand 36 4.4.3. Challenges with Transforming the Brand 37
4.4.4. Evaluation of Brand Transformation 38
4.5. The Swedish Coffee Market 38
4.5.1. Characteristics of the Market 38
4.5.2. The Product 39
4.5.3. The Level of Predictability within the Market 40
5. Analysis 41
5.1. The Swedish Coffee Market 41
5.2. The Flexible Brand Identity 43
5.2.1. A Flexible Extension 44
5.2.2. Creating Space for Brand Flexibility 45
5.3. The Consumers 46
5.4. Communication of The Brand Identity 47
5.5. Potential Pitfalls of Having a Flexible Brand Identity 48
6. Conclusion 50
7. Limitations and Future Research 52
References 53
Appendices 58
Appendix A 58
Appendix B 60
Appendix C 63
1. Introduction
Have you ever thought about the number of brands you are daily exposed to?
Every time you make a purchase you are forced to make a decision on which brand you prefer. From the corporate point of view, brands strive for being a part of your preferred choice set. To remain relevant in the market, companies need to work on their brand identities. Brand identity is considered a key concept within brand management and refers to how a brand aims to be perceived by consumers, and how it should maintain long-term coherence in terms of core values and meanings (Aaker, 1996; Kapferer, 2008). Further research states that a company’s brand identity is in constant transformation (Lucarelli & Hallin, 2015), and that evaluations and elaboration of new products in attempts to develop the brand can default the brand identity (Kapferer, 2008). Furthermore, brand identity tends to be more dependent on flexibility in a market characterised by movements and shifts. The movements and shifts, along with consumer trends, contribute to a market being dynamic, which is a concept previously discussed by researchers (Eisenhardt & Martin, 2000).
To put the concepts of the brand identity and dynamic markets into a context, we have decided to take a deeper look into the Swedish coffee market by conducting a qualitative study, including a multiple-case study on two Swedish coffee brands. The Swedish coffee market indicates to align with Eisenhardt and Martin’s (2000) idea of dynamic markets, since the market is experiencing continuous development. Sweden is the third most coffee consuming country in the world, and coffee is an important part of people’s everyday lives (Armstrong, 2020). The Swedish coffee market consists of a few bigger coffee brands, whose products are mostly sold in retail (Herin, 2019). The roasteries are located in different parts of Sweden, and each coffee brand tends to be most popular locally, however, all brands are sold nationally (Herin, 2019). A few of these brands also provide offices, hotels and restaurants with coffee and coffee equipment (Johnson, 2020). Apart from the main coffee brands, an increasing number of micro-roasters enters the market, mostly offering specialty coffee (Johnson, 2020).
The coffee consumption has remained high over centuries, and the Swedish habit of consuming ground coffee is rather predictable (Johnson, 2020; Armstrong, 2020). The ground coffee is bought at low price in the stores, which contributes to altering the market shares between the coffee brands, depending on which brand’s coffee is offered at the best price in retail at the time (Herin, 2019). The price at which the coffee companies purchase the coffee depends on the American stock exchange, where the raw product is traded (Herin, 2019). Despite the fluctuations in what brand possesses the most market shares, and in the stock exchange, the long-term perspective of the bigger brands is rather stable.
However, there are other market trends that seem to come and go. The market has shifted towards a specialty and experimental focus among consumers, as well as an increased interest in the origin of the coffee (Kwok, 2019; Kaffewiki, n.d.;
Herin, 2019). The market entry of the micro-roasters also seems interesting since they are more specialised in their range of coffee, which could possibly be seen as a matter of competition to the bigger coffee brands (Kaffebryggan, n.d.). This generated an interest in understanding the dynamics of the Swedish coffee market.
In order to outline what will be discussed in this study, the previous research will be derived and problematised, from which our study could develop and contribute.
1.1. Problem Discussion
Although previous research has configured the concept of brand identity, and the concept of dynamic markets separately, no research has been found on the perspective of a flexible brand identity operating within a specific dynamic market.
Regarding brand identity, some previous research regards the concept as stable and long-term fixed, whereas other theories consider it more flexible (Kapferer, 1992; Aaker, 1996; da Silveira et al., 2013). As indicated by da Silveira et al. (2013), a flexible brand identity enables adaptations depending on the context, but their
research does not discuss which kind of context is concerned. Therefore, the concept of flexible brand identity was decided to be put into context by focusing on the Swedish coffee market, and this in order to elaborate outcomes that potentially could contribute to research. The study could also be beneficial for Swedish coffee brands, which could receive new perspectives of the market and its dynamics. The current coffee companies experience increased competition because of the multiple micro-roasters entering the market. While consumer trends focus on specialty coffee, and the micro-roasters are more specialised in their productions, the bigger coffee brands could face difficulties in adapting their bigger productions to the market trends. Hence, the bigger coffee companies need to make sure to meet the consumers’ needs and interest, and also create brand identities that make them a part of the consumers choice set. This study could generate different points of view on how the coffee companies' brand management can process their brand identities. The outcomes from this study could possibly also be relevant for companies not existing in the Swedish coffee market, but in another possessing similar characteristics.
The implication that dynamic markets need to be redefined over time (Forlani &
Parthasarathy, 2001; Eisenhardt & Martin, 2000) could be central in the Swedish coffee market due to the significant impact the consumer behaviour tends to have. Stated by Ekström et al. (2017), consumer behaviour evolves and contributes to trends in the market. However, is a flexible brand identity needed to fit a market that experiences changes in consumer behaviour along with other dynamic aspects? As noticed, the interest in specialty coffee has increased, and so has the competition due to the new start-ups and micro-roasters. Therefore, it could be argued that it is more appropriate than ever to put forward new aspects on what a flexible brand identity can do for a company's business relevance. Perhaps, flexible brand identities could disturb the present stable market factors faced within the Swedish coffee market, in terms of fixed business models, purchasing, and sales processes, and as a result induce space for innovative ideas and new segments to be targeted.
The foundational idea of this study derived from previous research, where no one seems to have paid attention to the role of a flexible brand identity when existing in a dynamic market. This made us keen on integrating and elaborating on the concepts. Combined with the interest for the Swedish coffee market and the problems faced by Swedish coffee companies, this study was established. To clarify the aims of the study, the purpose followed by two research questions are stated below.
1.2. Purpose
The purpose of this study is to understand and further describe the concept of a flexible brand identity in a dynamic market, from a corporate perspective. The paper will discuss the Swedish coffee market and elaborate on a multiple-case study on two established coffee brands in Sweden. The outcome from the multiple-case study will provide insights into companies existing in a specific type of dynamic market and contribute to understanding the role of a flexible brand identity.
1.3. Research Questions
The purpose is further divided into two research questions:
1. How do companies work on transforming their brand identity?
2. In what ways can a flexible brand identity be favourable when existing in a dynamic market?
2. Theoretical Framework
This thesis aims to understand and further describe the concept of flexible brand identities in a dynamic market, from a corporate perspective. From his introduction of brand identity in 1992, Kapferer (1992; 2008) has elaborated on the subject and implemented a foundation for further studies. We find Kapferer’s (1992) and Aaker’s (1996) fundamental ideas of brand identity and brand management to be suitable for describing the background of brand identity.
Additionally, da Silveira et al. (2013) and de Chernatony (1999) have designed a framework describing brand identity in relation to other stakeholders and aspects of the brand environment, which in this study serves as a relevant tool for understanding the connections and further elaborate on the concepts.
To connect brand identity to dynamic markets, several ideas and research are describing the concept of dynamic markets in applicable ways (Eisenhardt &
Martin, 2000; Forlani & Parthasarathy, 2001). Theories on brand transformation and development by Lucarelli and Hallin (2015) and Kapferer (2008) can be considered as aspects of the following study. To understand the concept of brand identity, theoretical background on brand and brand management will be presented first.
2.1. Brands and Brand Management
According to Wood (2000), a brand could be defined as a valuable lasting corporate asset, which should be sustainably managed that way. This is supported by Burmann et al. (2017), stating the need for companies and their brands to possess a competitive advantage to ensure differentiation from their competitors.
With Wood’s (2000) definition of a brand, brand management represents the brand's whole system, a concept with deep-rooted value to its products and services, which are identified by a name and proprietary signs (Kapferer, 2012).
According to Kapferer (2012), brand management is defined by values, long-term thinking, and consistency, with the purpose to gain power by becoming known, bought, and engaging. Brand management starts by creating products and
services, to then be structured through communication to orient tangible perceptions and add intangible ones that embody the brand (Kapferer, 2012).
A company's brand management is of great importance to create and maintain a strong brand (Armstrong et al., 1996). Furthermore, Rust et al. (2004) shed a light on the importance of making brand management more customer-centered meaning that corporations should focus on their customers. Rust et al. (2004) state that the majority of managers sympathise with the opinion that businesses should focus on growing the lifetime value of their customer relationships. This theory is interesting for our study since it might support the thesis, concerning flexible brand identities, by helping us understand the empirical findings.
Since this study aims to consider the corporate point of view, the focus will be on brand identity rather than on brand image. Companies are not the ones to determine the brand image as that is on behalf of the consumers, and this is the reason for brand identity, which is directly created by the company, to be the central concept within this study (Ekström et al., 2017).
2.2. Brand Identity
Kapferer (2008) considers brand identity the key concept of brand management, which stresses the importance of identity as a part of brand management. The idea of brand identity was originally introduced by Kapferer in 1992 (Liu et al., 2020). Brand identity could be described as the fundamental idea of a brand, together with its unique features (Aaker, 1996; Kapferer, 2008). One definition of brand identity is presented by Aaker and Joachminsthaler (2000), who define it as a tool that “represents what the organisation can and will do over time”
(Aaker & Joachminsthaler, 2000, pp. 13).
From the literature research, two main aspects of brand identity and how it could be perceived are identified. The main aspects are considering brand identity as an enduring or flexible concept. Aaker (1996) considers the first aspect from his aspirational and enduring point of view, implying the brand identity as “a unique
set of brand associations that the brand strategist aspires to create or maintain”
(Aaker, 1996, pp. 68). The brand identity should be resistant to change and remain the same regardless of changes in the internal or external environment, or arising possibilities to promote profit (Aaker, 1996; Kapferer, 2008). This aspect is partly supported by da Silveira et al. (2013) stating that scholars within brand management usually refer to brand identity as an aspirational and enduring creation uniformly conducted by the brand management. Moreover, researchers discuss the interpretation of brands as enduring “anchors of meaning” for the consumers (Csaba & Bengtsson, 2006, pp. 130).
The second aspect we have identified in the previous research is the perception of brand identity as an adaptable concept. Da Silveira et al. (2013) hence explicate the idea of identifying a core identity comprising the fundamental and lasting aspects of the brand. Besides, they propose the concept of an extended brand identity involving dynamic dimensions. This implies possibilities of brand identity adaptations depending on the context. This aspect is more flexible, based on coherence and sustainability, but also on the possibility to adapt the brand identity in relation to dynamic environments (da Silveira et al., 2013). The latter fortifies the sense of flexibility, and thus the need for adapting the brand identity depending on the context. The idea of the dynamic extension of brand identity presented by da Silveira et al. (2013) is supported by Csaba and Bengtsson (2006) as well as Liu et al. (2020).
2.2.1. Brand Identity Frameworks
To visualise brand identity and surrounding components, two brand identity frameworks created by different researchers will be discussed. The frameworks aim to describe brand identity and the connections to other factors and stakeholders, albeit with slightly different methods.
The first framework is created by de Chernatony (1999) in order to help the brand management visualise the components building brand identity, and how it could be interpreted. De Chernatony (1999) stresses the increased interest and
internally conceptualises brand identity concerning a certain company's vision and culture, which in turn initiates the brand personality and the covet positioning. These components, combined with the relationships between them, are declared to identify and analyse the current and aspirational self-images of stakeholders (de Chernatony, 1999). In the framework, customers and consumers are also involved.
The second framework is created by da Silveira et al. (2013), showing the relationships between several aspects of importance within branding. Unlike de Chernatony´s (1999) framework, it embraces the strong connections between the brand management and the consumers, partly linked by the brand identity. The framework also includes external factors, which are individually evolving, and hence there are movements in the external surrounding giving a dynamic environment (da Silveira et al., 2013).
It is hard to tell whether one framework is more appropriate than the other concerning our study since both include useful features. The brand management, external environment, and encounter parts are considered within the framework of da Silveira et al. (2013), whereas de Chernatony (1999) highlights brand vision and culture as well as relationships and reputation. Both of them discover the brand identity and its position in relation to other factors, however, none of them points out the role of a flexible brand identity in a specific market. This enables us to adapt the frameworks, since we aim at focusing on a flexible brand identity in a dynamic market.
2.3. Brand Transformation
Since this study aims to understand and further describe the concept of a flexible brand identity, it is important to understand how a brand can modify its brand identity in relation to the market. The understanding of brand transformation is important to grasp the flexibility of brand identity.
From Kapferer´s (2008) point of view, brand development can only be conducted by proceeding under strict maintenance. Kapferer (2008) stresses the importance of durability when structuring and developing the brand over time.
This is because brand identity is strongly connected to the brand's meanings and expressions (Kapferer, 2008). When introducing new versions of products and differentiation, the brand's relevance will increase and the brand will experience growth (Kapferer, 2008). With growth comes diversity, and Kapferer (2008) states a certain challenge resulting from it being “how to manage this enlivening diversity without losing identity?” (Kapferer, 2008, pp. 279). According to Kapferer (2008), a brand exists through its products and services, and therefore the overall coherence enables it to communicate what they have in common, which is the brand identity. Therefore, it is important to be coherent when evaluating and elaborating on new products so that the brand does not default its identity (Kapferer, 2008). This statement made by Kapferer (2008) is indeed important for our study since it evaluates what can happen to a brand's identity if the corporation chooses to transform its brand.
Kapferer (2008) uses the term brand development, but in some contexts, it is also called brand regeneration or rebranding. Lucarelli and Hallin (2015) have conceptualised a performative approach called brand transformation, as an alternative concept to brand development. On the whole, this concept has the same meaning as the others, but with the modification in which Lucarelli and Hallin (2015) claim that rebranding is not only temporary but also a permanent process. This is the argumentation of the performative approach, which is stated by Lury (2009) as a way of seeing a brand as a process of development, from which the brand is assembled and constructed. This alternative approach of rebranding suits our study because we want to achieve a deeper understanding of flexible brand identities, and we believe that Lucarelli and Hallin’s (2015) concept of brand transformation, supported by Lury (2009), are the appropriate concept to use.
2.4. Dynamic Markets
To create a deeper understanding of the role of a flexible brand identity in a dynamic market, we need to evaluate what a dynamic market is. Despite the assumption of the Swedish coffee market being dynamic, it is hard to determine to what extent or what kind of dynamic market it is. Before explaining dynamic markets, a short description of what a market is will be outlined.
2.4.1. What Is a Market?
According to Sissors (1966) markets are usually identified by a generic class of products, such as the beer market or coffee market for instance. These are considered product markets and refer to people who have purchased certain products as a homogeneous group of people (Sissors, 1966). It could also be reasoned that people who have bought a product once are more prone to make repurchases in the future if they appreciated the products, which in turn could contribute to customer loyalty (Sissors, 1966; Ekström et al., 2017). However, the market seems to constitute more complex factors than just similar consumers because purchases are made for different reasons, and people always have individual features (Sissors, 1966). By social and technological development, people's needs and interests change, which has to be taken into account (Ekström
& Glans., 2011).
2.4.2. The Dynamic Market
Eisenhardt and Martin (2000) categorise market dynamism into two types:
moderately dynamic and high-velocity markets. Moderately dynamic markets are characterised by frequent changes but with roughly predictable and linear paths.
The industry structure is relatively stable with defined market boundaries, clear business models, and the stakeholders, such as the competitors, customers, complements, are well known (Eisenhardt & Martin, 2000). In these markets, existing knowledge is important and fundamental while it takes time to generate new knowledge.
High-velocity markets, on the other hand, have no linear paths and are not as predictable as the moderately dynamic markets (Eisenhardt & Martin, 2000). The high-velocity markets are featured by an ambiguous industry structure with blurred boundaries and shifting stakeholders. In this type of market, the revenue is often high, together with fast growth. Apart from the moderately dynamic market, a high-velocity market is known for its simplicity and experimental way of thinking (Eisenhardt & Martin, 2000).
Although Eisenhardt and Martin (2000) explain two types of dynamic markets, they do not state why the market is dynamic. For us to create a deeper understanding of a flexible brand identity, it is reasonable to know what causes the coffee market to be dynamic or stable. This is clarified by Forlani and Parthasarathy (2001), who discuss the diffusion of innovations concept, a concept that enables marketers to see markets as dynamic rather than static. The reason why is because it considers time as a key aspect in addition to products and people. The authors argue that the users of a product change, as well as the product ages, and therefore the markets might need to be continuously redefined over time (Forlani & Parthasarathy, 2001).
Depending on the empirical findings, it will determine whether the Swedish coffee market is stable, moderately dynamic, high-velocity dynamic, or a mix of both kinds of dynamic markets. As mentioned in the introduction, the Swedish coffee market is generally assumed to be rather dynamic, seeing the general characteristics in terms of trends, development, and shifts over time. However, it is not possible to determine before having compiled the empirical findings.
2.5. Consumer Behavior
Forlani and Parthasarathy’s (2001) claimed that because product users change and the products develop over time, the markets might need to be constantly redefined. Therefore, consumer behaviour seems to be an important factor when trying to understand dynamic markets.
The aspect of consumer behaviour is central within brand management and considerably important to observe to understand the market and its consumers, and why they act like they do (Ekström et al., 2017). As of today, we are all consumers that exist in a society where consumption shapes and marks people's social identities (Ekström et al., 2017; Ekström & Glans, 2011). Consumption is also a driving force in society (Ekström & Glans, 2011). The consumer's buying behaviour constitutes more than the actual purchase, as it also considers the consumer's thoughts and emotions, as well as it is affected by the external environment (Ekström et al., 2017). Adding consumers’ individual choices and consumption patterns together creates and contributes to changeable trends in the market, which makes consumer behaviour and the following trends dynamic concepts (Ekström et al., 2017).
In order for product companies to succeed, they need to identify the consumer's needs, and meet, or even exceed them (Ekström et al., 2017; Kumar et al., 2000).
By doing so, the company can become market drivers, which implies proactivity and abilities to create, rather than follow, demand (Kumar et al., 2000). Ekström et al. (2017) mention the necessity of focusing on the consumers as active subjects rather than passive objects, and that true interest and respect for them can improve sales and overall brand reputation. The consumer possesses power, which could be used as an indicator of what should be produced by the company.
In addition, the saying “the customer is always right”, implies the importance of the consumer, even though it can be discussed whether this proverb is outdated and misleading or not (Ekström et al., 2017; Kumar et al., 2000). Lastly, Ekström and Glans (2011) mention the consumers as the buying stakeholders, and their behaviour affects the selling company. Hence, it is important to consider the behavioural changes, and consider whether the brand and its identity need to transform in order to fit the market.
3. Method
The problem discussion of this study implied the lack of research on the aspect of a flexible brand identity in dynamic markets. The purpose of this thesis was to develop an understanding and describe the integration between the concepts.
3.1. Research Approach
This study is conducted with qualitative research. A qualitative research approach is considered to aim at describing, understanding, and discussing narrative-based data, phenomena, and information. There are several methods to collect data, one of which is in-depth interviews (Kothari, 2004), which we used in this study.
Qualitative research can explain how one concept relates to the other and provides an understanding of how theoretical models are created through social processes (Barbour, 2014). The qualitative approach was deemed to be most suitable since we intended to develop an understanding of the role of a flexible brand identity in a dynamic market.
This qualitative study was carried out through an inductive approach, where the empirical findings served as a foundation for improving ideas and finding connections to the theoretical framework (Johnson & Christensen, 2014). The inductive reasoning searches to acquire new knowledge by observing and learning from specific instances and examples, and then seeks to establish generalisations and create theories (Hyde, 2000; Johnson & Christensen, 2014; Benitez-Correa et al., 2019). How to assure the outcome will turn out similar in all cases? This could be seen as a problematic aspect of the inductive approach, and despite the expected outcome might have occurred in most cases, it is not certain to occur in all future cases (Johnson & Christensen, 2014). This aspect of induction was taken into consideration during the study, however, in order to reach some kind of analysis and conclusion, we needed to rely on the empirical outcomes.
3.2. Data Collection
3.2.1. Empirical Data Sources
As for the primary data collection, we chose to conduct in-depth interviews, which gave us information and first-hand insights into the Swedish coffee market, which we otherwise would not get access to. The empirical data was vital to achieving our purpose and gave meaning to understanding and describing the coffee market as a dynamic market. In addition, we began our thesis by using different web articles to gain an overview of the Swedish coffee market so that we could problematise the practical phenomena.
3.2.2. Literature Review Process
On the contrary, the majority of the secondary data was collected through scientific articles and journals, in which the articles needed to be thoroughly tested and validated by other researchers before publication. This ensures reliability (Kothari, 2004), which is significant when aspiring to conduct and achieve research of quality in a trustworthy manner. In addition to academic articles, we have used well-cited and acknowledged books as well as the statistics from Statista.
Despite the early publications of some sources used in this study, as Aaker (1996) and Kapferer (1992), we reason that these are foundational for the subject since the authors work recurs in modern scientific journals too (e.g., in the Journal of Business Research & Journal of Marketing Management). As an example, Kapferer´s book “Strategic brand management” has been revised and improved along with knowledge development, which makes the literature contemporary.
We argue this increases the reliability and trustworthiness of the use of the research.
3.3. Interviews
The selected sample for our interviews was decided by observations of case companies within the Swedish coffee market. We decided to conduct interviews with two Swedish coffee brands for the empirical data collection, to gain a broader insight into the Swedish coffee market. Case company A is a bigger Swedish coffee roastery, and its products are sold all over Sweden, both in retail but also through distributors and hotels/restaurants/cafes (horeca). Case company B is a smaller local Swedish coffee roastery, whose products are mostly distributed through specialty stores, but also in horeca and offices. Case company A also claims to have a solid department for brand management working on the brand as its main focus, whereas case company B does not because of the size of the company. As seen in Table 1, respondents 1, 2, and 3 are working for case company A, whereas respondents 4 and 5 work for case company B.
Table 1: Information about the interviews and the respondents
Respondent Position at
company Number of years on
the position Case Company Duration of interview 1 Key Account
Manager, Retail 5 A 62 minutes
2
Brand and Product Development
Director 12 A 79 minutes
3 Brand Experience
Manager 20 A 56 minutes
4 Sales Manager 12 B 42 minutes
5 Marketing Manager 12 B 43 minutes
The respondents have different organisational positions, which was our intention to gain information from several aspects. We were aware that it would affect the results of our study, which it did in terms of the level of knowledge and insights.
Since we decided to use a qualitative approach, we intended to gain insights from the individuals’ perceptions about brand identity and the Swedish coffee market.
This was performed by a semi-structured way of conducting in-depth interviews.
The semi-structure enabled us to rearrange the questions, and also come up with new ones during the interviews, depending on the interviewee’s response (Barbour, 2014). The structured questions were formed to align with the purpose of this study. The themes, partly influenced by the theoretical concepts, were handed out in advance so that the respondents could prepare themselves. By this, we aspired for more thoughtful responses in the interviews.
Due to the situation of the Covid-19 pandemic during our study, the possibility to do the interviews in person was not an option. Hence, all interviews were conducted digitally. Despite the pandemic of Covid-19, some of the interviews would have been conducted digitally either way due to the geographical distances.
Online interviews are sometimes criticised for not being able to show body language and unspoken cues, however, data collection through online interviews has shown to even outdo face-to-face interviews (Nehls et al., 2015). One key advantage of digital interviews is the interviewee´s possibility to be flexible when deciding where they want to conduct the interview (Nehls et al., 2015). In turn, the interviewee tends to feel more comfortable when they participate from home or their own offices. Therefore, we believe the digital form of conducting interviews did not affect the participants' answers negatively. The interviews were held in Swedish since it was all the respondents’ native language.
In conclusion, we decided to keep all the participants anonymous since we wanted this study to be impartial and independent. We argued that anonymity will help the reader to focus on the content, rather than placing value on the individual saying it.
3.4. Interview Guide
Kallio et al. (2016) put forward a five-step model for developing a semi- structured interview guide, which we decided to follow. Kallio et al. (2016) state that a semi-structured interview guide consists of two types of questions, main themes, and follow-up questions. The main themes allowed us to cover the main content of our research being brand identity and the dynamic coffee market,
while the follow-up questions supported the main themes (Kallio et al., 2016;
Bryman, 2018).
The first step of the model stated by Kallio et al. (2016) considers the identification of the prerequisites using semi-structured interviews for data collection. As previously mentioned, we argued for structure, but with space for openness to reach an in-depth response. Aligned with the second step, we considered previous research to create a thorough and adequate understanding of the topic (Kallio et al., 2016).
Thirdly, Kallio et al. (2016) state the step of formulating a preliminary interview guide for data collection, used to make sure the questions and order are logical.
Hence, questions regarding how the company deals with brand transformation, and whether the Swedish coffee market is predictable or not, for instance, were formed. The fourth step includes pilot testing, aiming to confirm the relevance and reach of the content in the preliminary guide (Kallio et al., 2016). We believed this step was of great importance since we could identify weaknesses and parts in our interview guide that needed to be improved or reformulated, and also locate potential biases (Kallio et al., 2016). Therefore, we tested the interview with each other, referring to our current jobs.
Afterward, we completed the last step by ensuring the interview guide was clear, logical, and suitable for collecting empirical data (Kallio et al., 2016), and the result can be seen in appendix A.
3.5. Analytical Approach
Since the interviews were conducted through digital tools, we were able to record the audio of the sessions, and we could therefore pay full attention to the interviewee and be present when asking questions. The audio recording could not grasp all impressions and perceptions occurring during the interview, so we decided to take notes individually. Afterward, we discussed the notes, and the interviews were transcribed according to the process presented by Burnard et al.
(2008). While listening to the interviews repeatedly, there is room for other interpretations, reflections, and new aspects to arise (Saldaña, 2011). We transcribed the interviews in Swedish but translated the direct citations in the empirical findings since the thesis is written in English.
After the transcriptions, the next step was to analyse our findings. Unlike quantitative research, where the analysis represents itself by the data collection, the qualitative research data needs to be discussed and partly connected to previous research (Burnard et al., 2008; Heydarian, 2016). The analytical process begins immediately after the interview and continues by modification (Burnard et al., 2008). We decided to use a thematic analysis, which is performed by identifying codes, categories, and themes appearing in the transcribed data (Burnard et al., 2008).
Our thematic analysis resulted in five different themes being: brand flexibility, factors affecting the brand, communication of the brand, brand transformation, and the market. The themes arose from the categories and codes identified when we analysed the interviews. To exemplify one of our thematic coding processes, expressions like core values, traditions, adaptability, changes over time, and DNA, were recurrent through all interviews. Respondent 5 from case company B said, “It is always important that we hold on to our DNA and never lose it since it is extremely important to us that we continue to be reliable...”. In turn, the codes formed categories, which were named as static and adaptive components, for instance. From this, an overall theme: brand flexibility, was created.
Table 2: An example from the coding process
Themes Categories Codes Example from the
Interview Responses
Brand Flexibility
Static Components
Adaptive Components
Reasons to Have a Flexible Brand
Risks of Damaging the Brand
- Core values/brand DNA/traditions - Long-term focus - Shift in generations - Adaptability - Changes take time - Up-to-date,
contemporary actions - Brand relevance - Coherence - Risk for mistakes
“It is always important that we hold on to our DNA and never lose it when adapting our brand, since it is extremely important to us that we continue to be reliable.”
“We have to be contemporary in our actions to stay relevant.”
During this process, we tried to make the themes correspond to our research questions and the purpose of this study, being the role of a flexible brand identity in a dynamic market, as Castleberry and Nolen (2018) imply. The themes identified constitute the subtitles in the empirical findings. Merging the empirical findings with the theoretical framework, result interpretations and analysis could be conducted.
3.6. Validity
Since this study was performed by using a qualitative research approach, it was of importance to prove credibility due to the risk of personal and subjective interpretations of data (Noble & Smith, 2015). Credibility is a part of the internal validity examining the extent to which the study design, performance, and conclusion answer the research questions without prejudices (Andrade, 2018).
To ensure credibility, rigor, and add trustworthiness to our study, we accounted for and acknowledged the risk of personal bias. As we conducted interviews with people in different positions from two companies, we gained different perspectives (Morse et al., 2002).
The external validity refers to the generalisability of the study findings, results, and conclusions, and whether these could be applied in other contexts (Andrade, 2018; Castleberry & Nolen, 2018). Since we have conducted qualitative research with an inductive approach, the level of generalisability is rather limited to a certain market and companies included in this study (Castleberry & Nolen, 2018).
This is because the circumstances for which a qualitative study is conducted are almost impossible to replicate.
The time spent on the study was limited to the time to complete this bachelor thesis. However, to make the study more credible and trustworthy, we spent a great period of time searching for a suitable market and appropriate interviewees matching our study intentions.
Another point of importance when conducting qualitative research is the validation of a third party (Burnard et al., 2008). Therefore, we handed the extracted data from the interviews to the respondents before it got published so that they could approve or change something they perceived to be incorrectly interpreted by us.
3.7. Reliability
Morse et al. (2002) consider the idea of verification a process of testing, confirming, ensuring, and being certain. Although, this is believed to be complicated in qualitative research due to it being socially and narratively constructed (Burnard et al., 2008). Verification refers to the tools and structure used within the research process to contribute to the overall rigor of the study (Morse et al., 2002). In order for our study to remain reliable throughout the whole process, we aimed to perform every step carefully and also critically reflect on the proceeding (Saldaña, 2011). In the transcribing and coding processes of the in-depth interviews, we believe consistency and objectivity are crucial components to generate unaffected results. By doing so, we aimed to increase the chance of the results of someone else replicating the research process turning
out similar to ours. This would require identical circumstances too, which is hard to ensure.
Lastly, the theoretical framework was elaborated through thorough yet topic related research, and analysis of different authors and their previous research. We tried to gather reliable and impartial information through different readings regarding perspectives, credibility, and origins (Saldaña, 2011). Besides, we backtracked the scientific sources and investigated their contributions to other research and previous studies to assure reliability and trustworthiness.
3.8. Research Ethics and Confidentiality
Throughout our study, we placed a high value on ethical treatment since we work with human participants. The objective was to achieve a high moral standard and fulfill Saldaña’s (2011) classical principle being “but first, do no harm”. To accomplish this principle, we strictly followed the GDPR guidelines, and the gathered information was only used within this certain study, no one else had access to the material.
Moreover, it was important to treat all organisations and individuals who participate equally and impartially before, during, and after the study. This was made out of respect since we wanted our study to be as impartial and unbiased as possible, to receive the factual outcome without affecting it in any way.
4. Empirical Findings
According to the purpose of this study, we wanted to create a deeper understanding of the flexibility of brand identity within the Swedish coffee market as a dynamic market. As mentioned in the method, five semi-structured interviews were performed with people working for two Swedish coffee companies, case company A and B. Respondents 1, 2, and 3 work for case company A, whereas respondents 4, and 5 work for case company B. Case company A claimed to represent togetherness, inclusiveness, versatile responsibility, entrepreneurship, and openness. Case company B claimed to represent tradition, quality, knowledge, and inclusive family-feelings.
The interviews resulted in several themes and categories that are presented and analysed in chapter 5. From the interviews, we have gained firsthand insights into brand flexibility, the factors affecting the brand, how to communicate it, the brand transformation, and lastly the Swedish coffee market.
4.1. Brand Flexibility
A brand’s flexibility plays an important role in this thesis; therefore, the interviewees were asked to describe their interpretation of the brand and its flexibility. It resulted in a number of components divided into static and adaptive, likewise reasons and risks of having a flexible brand.
4.1.1. Static Components
All respondents pointed out some components within the brand, which are not flexible. Respondent 2 claimed the brand's core values to be seen as a static aspect that should not be changed. Likewise, the respondents from case company B mentioned the importance of the brand's DNA and its traditions to be kept over time. Additionally, respondent 3 argued that their brand is represented by coffee and will always do so.
4.1.2. Adaptive Components
However, according to the respondents, not all components of the brand are static. Respondent 4 claimed that during shifts of generations, the organisation will experience new ways of thinking and different mindsets automatically leading to changes of the brand. Meanwhile, respondents 1 and 3 stated that the perception of the brand must be adaptable so that it fits the present. This goes hand in hand with respondent 5 who, for the same reason, answered that the brands positioning needs to be renewed over time.
Respondent 1 stated some thoughts about the adaptation process:
It is not possible to change the moving imagery of the brand over one night, but it takes time. Instead, you need to find a few keywords which you can work for and hold on to in order to reach future success.
Moreover, respondent 5 claimed the design of the brand, such as the logotype and other graphics, needs to be updated over time in order to remain appealing and relevant. Respondent 4 said that the products are continuously developed according to the social and environmental improvements and changes.
Respondent 3 claimed that the offers are constantly changing, in order to meet the consumers changing demand.
4.1.3. Reasons to Have a Flexible Brand
Respondents from both companies highlighted the benefits of brand transformation, and that changes are possible as long as the core values and the brand’s DNA are preserved. Therefore, all respondents claimed the need of choosing wisely which market trends to follow.
Respondent 3 emphasised the importance of the brand being contemporary adapted, to fit the current market and consumers. In line with this, respondent 4 stated that when a brand follows demand, it will automatically remain relevant on the market, which means the company will continue existing.
Respondent 2 expressed the importance of relevance and how consumers change over time:
I only see benefits with changing the brand, given that you hold on to the business's core. Thinking of end consumers, people, because it is all about being relevant to people. And nothing will be relevant over time, since we exist in an ever-changing world. There will be new generations and new ways of living and acting. We have to face it, that is it. I do not think it is an option to be static.
4.1.4. The Risks of Damaging the Brand
The respondents outlined few negative effects of transforming the brand but claimed that there is always a risk of damaging the brand if mistakes or misjudgments are made. Respondent 2 stated that “one action could make the brand suffer for many years”. All respondents highlighted the importance of staying within the limits of the brand's core values, DNA, and keystones when changing and developing the brand. Respondent 3 claimed all changes have to be anchored in the brand’s values. Otherwise, stated by respondent 4, the changes or products might not align with the brand and what it stands for, which could decrease the brand’s likability and trustworthiness.
Lastly, respondent 1 claimed that rapid changes in the brand can mislead and create dissatisfaction among consumers. Accordingly, two respondents stated that the company should not try to conduct business too far from the brand’s core values and their area of expertise since it could damage the brand. As an example, two respondents implied there is a fine line between following consumer trends to a high extent and losing the brand´s coherence and connection to its core values.
4.2. Factors Affecting the Brand
The second theme that emerged from the interviews was the factors affecting the brand. These factors could be categorised as consumers, environment, and horeca & retail.
4.2.1. Consumers
According to the respondents, there are several aspects and stakeholders affecting the brand, most of which are external. They all mentioned that the end consumers play a big role since they are the ones consuming the products, as well as they are receivers of the brand's messages. Additionally, respondent 2, mentioned that having existed as a brand for a long time, the market has created a preconception and position of the brand. Due to this, respondent 3 claimed it is not always a positive thing if the consumers have negative or inaccurate interpretations about the brand.
The respondents claimed consumers to be one of the most important stakeholders in relation to the brand because they create trends that affect the organisation. Out of the respondents' answers, the consumption of coffee seems to remain similar over time, whereas brewing and roasting techniques and the way of drinking coffee are changing. Respondents from both case companies claimed consumers to become more aware and prone to know about the origin and production of the coffee they drink. They mentioned that coffee is becoming a product where consumers want to find out their favourite region and flavour, such as for wine or whiskey, for instance.
Lastly, one key finding was that respondents from both case companies highlighted the younger generation, the coffee consumers of the future. As mentioned by all respondents, people, and especially the younger audience, tend to be more conscious and seem more interested in social responsibility and environmental issues. All respondents from case company A also put forward the focus on different coffee alternatives, such as ice coffee and on-the-go options, to fit the younger generation´s demand. They also implied that targeting
