The positioning of companies in the energy sector has been changing over the last few years, with the increasing relevance of issues such as the energy transition and sustainability. Although this is an industry that provides essential consumer goods, differentiation is not only possible, but also crucial for fostering a relationship of trust with customers and employees, a process that is based on creating a powerful brand. “It starts as a process that needs to be implemented throughout the company, but decision-makers need to understand the philosophy behind branding rather than focusing on the immediate figures”, explained Fridrik Larsen in an interview with Energiser.
The branding expert, and the only holder of a PhD in Energy Branding in the world, was in Portugal to share his know-how and experience in the area. He stated that “continuous investment” in brand creation has already given rise to returns, not only financially with a “rise in share prices”, but also in terms of a company’s reputation. However, to establish brand preference among consumers, working on rational aspects and focusing on price differentiation is not enough; you have to “do more, act and communicate with customers in a different manner” and create an emotional connection.
The CEO of LarsEN Energy Branding and founder of the Charge conference – an event that brings together companies from the sector with marketing professionals committed to transforming commodities into brands – believes that “differentiation and positioning are the foundation of a brand”. These factors are the reason why competing to charge the “lowest price” isn´t enough to set a company apart in the eyes of consumers.
The company Octopus Energy, based in the United Kingdom, is a good example of branding, the “biggest in the country and the fastest growing in Europe: yes, they only sell electricity, but they do it differently”, he explained. Their communication with consumers is outside the box, as is the company’s behaviour, meaning customers view it in a different light and “prefer to buy electricity from Octopus”.
Fridrik Larsen came to Portugal to share his know-how and experience in branding
“The process of creating a brand isn’t set in stone”, he declared, and the work behind this procedure will change constantly. It is increasingly important to think of branding as a “philosophy” that ensures organisations remain relevant and that helps to convey trust, putting aside the idea that it’s just another expense. A powerful brand adds value to the business in several areas, including in terms of finances, but it is necessary to think of it “outside the box and accounting principles”.
The process is particularly difficult due to the “growing polarisation” of society, which tends to divide and simplify issues as either just good or bad, the branding expert pointed out. “The world isn’t like that and the same applies to brands”. It’s easier for new players in the market to “be challenging”, and if large-scale companies want to combat “the latest invaders in the energy sector” they can’t keep on doing the same thing year after year.
New Zealand provided a good example of how branding is essential to establishing brand preference among customers with the “famous case” ofMeridian Energy versus Powershop.
“Nobody likes Meridian, they’re the bad guys, but people like Powershop, who communicate brilliantly”. Advertising through the use of controversial images such as the Pope and Donald Trump has turned it into a brand that “gives the system the finger”, and people like that, but “Meridian Energy can’t do that”, he says, explaining that several companies are creating sub-brands that are loved by consumers, such as Powershop, which is owned and was founded by Meridian Energy.
The only solution for major companies, which many people regard as wrongdoers, is to be transparent, honest and act in a responsible manner on a daily basis, because “people will eventually acknowledge it”.
As far as this branding expert is concerned, we need to “do more, act and communicate with customers in a different manner”
Based on his experience, he offers a piece of advice: don’t be afraid to take a deep look at yourself, understand your identity and be bold, while bearing in mind that “a brand is a philosophy, not a specific truth”, and that each organisation has the power to decide what kind of company it wants to be.
“A brand is a philosophy, not a specific truth”
Fridrik Larsen attended an internal Galp initiative together with five other international experts, all of whom shared their experiences in the areas of branding, strategy and innovation: Fernando Ortiz Ehmann, global director and Partner at Saffron Brand Consultants, René Bohnsack, professor of Strategy and Innovation at the Catholic University and director of the Digital+Sustainable Innovation Lab, Will Bosanko, managing partner at Brandpie, Liliana Pais, Intelligence & Strategic Planning Manager at Bar Olgivy, and Filipa Lopes Ribeiro, brand manager at Galp.