As a strategist (and someone who lives in their Lululemon leggings on weekends), I often find myself pondering the big questions: What makes a brand truly stand out? How can brands spot the best opportunities before competitors swoop in? And, more importantly, will I ever stop buying activewear?
Recently, though, my attention has been diverted by On. The Swiss running shoe brand opened a store near my home last year and just launched an apparel campaign with performer FKA Twigs.
In a world where brands like Lululemon thrive through community-driven marketing strategies, it’s fascinating to see a relatively new brand like On take a more traditional route by leaning into celebrity endorsements. With the likes of Nike and Adidas also continuing to favour celebrity power, it’s a perfect moment to evaluate what’s really working in today’s fitness market. So, here we are.
Just as every brand has its vibe and interpretation, every research question requires the right analytical approach. In this article, I'll break down popular brand analysis frameworks to test which is most effective at diagnosing what On can do to stay ahead of the competition.
Brand Analysis Frameworks
SWOT Analysis
Whilst it's not the most groundbreaking framework, SWOT is a reliable go-to, like that old pair of sneakers you just can’t bare to part with. Analysing Strengths, Weaknesses, Opportunities, and Threats – helps generate a quick snapshot of what makes a brand unique, and where it falls short.
Brand Positioning Matrix
When asking what truly sets a brand apart, you’re really questioning how well it's positioned. This framework comes in handy when homing in on target audiences to prioritise competitors and define unique selling points that no other brands have.
Keller’s Brand Equity Model
To figure out how to keep customers coming back for more, this framework is useful for understanding customers' perceptions of a brand and diagnosing key loyalty levers. Think of it as building a long-term relationship – if a brand ticks all the boxes for awareness, meaning, and customer response, then it’s set up for a strong, lasting bond.
4C’s
When profitability is the name of the game, the 4C’s framework helps get into the nitty-gritty of where a brand can make a mark. This framework helps analyse the interplay between a brand and the ecosystem it operates in, to reveal competitor weaknesses, what customers really want and opportunities that may have untapped potential.
Porter’s 5 Forces
If a brand is in it for the long haul, this framework helps size up a brand’s competitive environment and assess external pressures. It’s a bit like a marathon – you need to know who you’re up against (competitors), who else could join the race that poses a threat (new market entrants), what shortcuts they might take (alternative products), and how other strong other athletes are (resilience).
Verdict
Based on the five frameworks explored, the most advantageous framework for On as they seek to penetrate the athleisure market would likely be Keller’s Brand Equity Model. Here’s why:
Brand perception and emotional connections:
Keller's pyramid model focuses on understanding customer perception at every step of their journey, from initial awareness to emotional connection. Despite solid recognition in the footwear market, aligning On's innovations in sustainability and performance with customer lifestyle aspirations would help them stand out not just as a technical brand, but also as one that supports a more eco-conscious lifestyle.
The success of brands like Lululemon stems from their wide variety of products and ability to combine in-person experiences with digital experiences and brand-led movements. For On, celebrity endorsements, like the recent collaboration with FKA Twigs, should serve as a catalyst for building a broader, engaged community.
With FKA Twigs, On has expanded its narrative beyond 'just fitness' to embody diverse forms of sports and self-expression. If On wants to emulate the strategies of community-led brands, they should reach out to different subcultures by highlighting products applicable to different lifestyle activities through more unconventional collaborations like this.
Resonance, Loyalty and Brand Growth:
Keller's model also looks at key loyalty drivers. On's eco-friendly design and focus on movement and comfort make it an ideal partner for brands seeking to expand into other lifestyle segments. For instance, partnering with a brand like Smart, which also positions itself as an urban companion, could boost the sentiment of both brands among customers who prioritize innovation in all areas of life. By actively engaging customers through shared experiences, one can build brand resonance that surpasses functionality and enters the realm of identity and self-expression.
Nevertheless, sustainability is not just a selling point anymore. It’s a necessity for long-term market resilience. Aside from collaborations outside of athleisure, On can demonstrate its commitment to sustainability by introducing fully circular product lines and offering an eco-driven loyalty program. The program could reward customers for recycling products or encourage participation in environmental cleanup initiatives, gaining points in return. In an increasingly eco-conscious market, demonstrating a commitment to sustainability would not only enhance customer loyalty but also position the brand as proactive and forward-thinking.
Emphasise on Customer-Centricity:
Lastly, the Keller model suggests focusing on customer perceptions and aligning brand innovations with deeper desires - albeit sustainability, self-expression, or lifestyle aspirations. All of these strategic recommendations create a pathway to do so.
Why Other Frameworks Got Demoted
SWOT is a solid foundational tool for identifying strengths and weaknesses, but in this case lacks the customer-centric depth needed for building a lifestyle brand.
The Brand Positioning Matrix is helpful for understanding On's competitive position, but it does not provide actionable insights for establishing stronger connections and brand equity over time.
4C’s is great for understanding competitors, collaborators, and customers, but doesn’t offer the emotional and loyalty-building focus that’s key to penetrating the athleisure market.
Porter’s Five Forces help assess market dynamics, but for On’s goal of brand building in athleisure, internal brand strategies and customer connections take precedence over external competition analysis.
In conclusion
Since frameworks rely on similar broad factors (brand perception, competitive landscape, customer expectations, etc.), they produce somewhat overlapping insights. Collecting more granular and targeted data always helps generate more differentiated and specific outputs.
Publicly traded competitors like Nike, Adidas, and Puma often publish quarterly or annual reports containing financial metrics like revenue growth. Acquiring this information could have helped me improve my SWOT or 4C analysis. Reports from consultancy and research organisations also tend to examine industry rivalry and threats from new market entrants or product substitutes.
Comments on Trustpilot, Amazon, or Reddit also provide insight into brand/product strengths and weaknesses. For instance, comfort, stock availability etc. In addition to measuring brand awareness, loyalty, and emotional connection, social media can be great for gauging customer perception. Google Trends can also help you see what's being searched across regions and determine brand curiosity and popularity. All would have been great data sources for enriching my Keller analysis.
To achieve a more accurate positioning map, having information about pricing and product mix is advantageous. This enables you to compare competitors on specific axes, such as affordability or lifestyle relevance. A comparison of On's pricing against, for example, New Balance or Peak Performance, could be conducted using price comparison websites or each brand's e-commerce website.
And Voilà. That concludes this article. Thanks for reading!
Give it a heart if you'd like to see more posts like this, or leave a comment if there's another framework you'd like me to test.
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