Glossary

Generic Brand

Generic Brand

Generic Brand

Bildquelle: ©Konstantin Yuganov - Fotolia.com

There is not just one but two definitions for the term "generic brand" – and the two have nothing to do with one another.

1. The brand name stands for a whole product segment: In this definition, the generic brand is a brand whose awareness and attractiveness are so great that it displaces the actual product name from common parlance. For instance, most people ask for a "Kleenex" rather than asking for a tissue. And they "google" something when they use an online search engine.

Products that enjoy this special status are often those who were pioneers when they entered the market, occupied their position with the aid of a No.1 positioning, and got established quickly. Because competitors usually hit the market quickly with copies, it is important to keep on strengthening the brand and consistently live its No. 1 positioning, despite the high degree of awareness and attractiveness.

2. A "no-name brand" without its own strategy: A "generic brand" is also the opposite of a product brand, and is often called a "no-name product". These are mostly products of daily consumption that provide purely a product benefit without added value, are in the lower price segment, and are often sold by discounters. The competition is fierce and the products interchangeable.

That means: A generic brand of this type does not have an individual brand strategy. The only differentiating feature is often its price. Examples for typical generic brands in this sense are the "Ja" products sold by the REWE Group. In the pharmaceuticals sector, these generic brands are also called "generics".

Good Brands

Good Brands

Good Brands

Good Business - Bildquelle: © Oatly

According to the good business approach, companies and brands should in the future see themselves as integral parts of society and the world. Being part of that larger whole means that companies have to take responsibility, to help shape it. Their first priority cannot be profit, but a higher purpose to benefit the larger whole. Corporate social responsibility measures are demoted to minimum requirements.

How does taking on social and ecological responsibility benefit a company?

 

Pursuant to the 3-P model, good business creates a win-win-win situation for companies: Their socio-economic contribution benefits society (people as win 1), the world (planet as win 2), and the company itself earns an adequate profit (profit as win 3).

This new self-perception not only corresponds to customers' changed expectations of companies and brands, but also builds a framework for innovation, successful brand extension and new business models.

Compared to impact brands, a good brands does not necessarily have to claim to change the world, but sees itself as part of the larger whole. In light of this self-concept it wants to make a positive contribution with its business activities.

Great Resignation

Great Resignation

Great Resignation

Great Resignation - Definition

The "Great Resignation" is a phenomenon in the world of work that began during the coronavirus pandemic in spring 2021: People no longer want to work in the same way they did before the pandemic - and are withdrawing.

What impact did the Great Resignation have?

The Great Resignation led to a wave of layoffs that continues to challenge and change the labor market in many ways.

It accelerated the ongoing transformation from an employer to an employee market and further intensified the "war for talent".

How did the Great Resignation come about?

The causes of the Great Resignation and thus the increase in the number of resignations lie primarily in the exceptional situation during the pandemic: employees stayed at home (working from home or on short-time working) and were cut off from their working environment.

On the one hand, this led to loneliness and uncertainty, but on the other, people spent more time with their families and reorganized their leisure activities. A new rhythm of life emerged that caused people to fundamentally question their job and its meaningfulness. Some employees also used this phase to learn new skills: they improved their qualifications and expanded their career opportunities in order to enter a new industry.

Although this development was already apparent before the pandemic, the great wave of retrenchment came during the coronavirus period.

How should employers respond to the Great Resignation?

Companies are now faced with the challenge of having to meet the changing wishes of employees. The most frequently cited reason for resignation is a lack of emotional attachment to the company. This follows: Companies must take measures to strengthen employee loyalty.

This can be achieved through employer branding if it is optimized and used consistently. As soon as employees feel comfortable in the company, they stay longer - and also perform better.

 

Do you have any questions or suggestions about the glossary or would you like further information? We look forward to receiving your e-mail.

Greenwashing

Greenwashing

Greenwashing

Glossarbeitrag Greenwashing

Greenwashing is a marketing strategy that a company uses to portray itself as ecologically responsible even though it is not – or at least not to the extent that it claims in its communications.

What does the term "greenwashing" mean?

The color green in "greenwashing" symbolizes nature and environmental protection, while "-washing" stands for whitewashing, especially with regard to the ecological and sustainable performance of a brand.

The aim of greenwashing is not only to conceal and distract from critical aspects: it also involves spreading untruths in order to improve the image. Greenwashing affects several areas, such as the brand image, the manufacturing process and transport.

The three characteristics of greenwashing: opacity, misleading, exaggeration

These indications could be greenwashing:

  1. Opacity: Brands that engage in greenwashing tend to communicate in a nebulous and incomprehensible manner. The statements - for example from corporate influencers - are unsubstantiated and difficult to verify. They offer considerable scope for interpretation and lack substantive content. In addition, there is a lack of concrete actions that would factually prove the claims.

  2. Misleading: Consumers are deceived by unclear terms such as "natural", "ecological", "environmentally friendly", "regional" and "green". These keywords are not subject to any legal restrictions and can be used freely. Nevertheless, consumers often associate them with sustainability. In the area of ??cosmetic products, terms such as "natural cosmetics" or "organic cosmetics" are not legally protected.
    (In the food industry, however, the terms "organic" and "eco" are legally protected. They may only be used if the product actually comes from organic farming.)

    Further examples of misleading information:

    - Brands sell products as "certified as sustainable", but the seals are made up. The goods could even harm the environment and people.
    - So-called "beacon products": With these, brands stage their supposed sustainability, while their core business remains harmful to the environment. Green imagery is often used to create the impression that the brand as a whole acts sustainably.

  3. Exaggeration: Some companies praise themselves for things that have long been required by law. They suggest an above-average commitment to greater sustainability, even though they are only fulfilling the legal requirements.

 

The EU is taking action against greenwashing

The EU Parliament has passed a Europe-wide law - the "Green Claims Directive". The main aim of this directive is to combat greenwashing and reduce confusion among consumers: they often do not know which of the numerous seals are actually credible and which are not. The directive requires brands to prove that their products are environmentally or climate-friendly. Only then are they allowed to use a corresponding label. Failure to comply can result in fines.

What does greenwashing mean for brand success?

Greenwashing poses significant risks to a brand's success. When consumers realize that a brand is cheating through greenwashing, this leads to a massive loss of trust. Especially on social media, this can quickly lead to a boycott of the brand and cause long-term damage.

The opposite phenomenon is not a solution: greenhushing - when brands keep quiet about their sustainability activities for fear of greenwashing accusations.
This is the only solution: brands must clearly and confidently fulfill their commitment to sustainability. They should anchor sustainability as an integral part of a long-term strategy with a clear focus. This is the basis for communication that is credible.

Similar to greenwashing is bluewashing: this is when a company overemphasizes or invents social activities.

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