Resolving Disagreements Between Design Approach and Marketing Strategies
In the 1960s, the marketing mix was introduced, encompassing decisions about a product, its price, place, and promotion. Fast forward to the present day, and the lines between design and marketing have become increasingly blurred, especially in the holistic approach of companies like Apple. This evolution is evident in Nestlé's strategy to penetrate the Japanese coffee market, which was dominated by tea due to its rich cultural history.
In the 1970s, Nestlé faced a challenge as their coffee didn't experience growth in sales, despite offering an affordable and well-liked product. To understand the reason for this mismatch, the company sought help from anthropologist and market researcher Clotaire Rapaille. Through anthropological research, Nestlé discovered that Japan was a tea-first culture, where coffee was seen as foreign and bland.
Recognising that directly marketing coffee to adults would fail, Nestlé adopted an innovative approach. Instead of pushing coffee as a sophisticated adult drink, they used candy, cartoons, and other products appealing to children and younger audiences to build coffee’s presence at a cultural level. This culturally tailored approach helped them slowly introduce coffee into Japanese daily life by building familiarity and positive associations.
Key points in Nestlé’s strategy were cultural immersion and research, indirect marketing, long-term market development, and product adaptation. By spending years educating and shaping consumer tastes gradually, Nestlé was able to transform coffee from a foreign curiosity into a staple beverage, dominating about 70% of Japan’s instant coffee market.
This combination of deep cultural insight (anthropology) and creative marketing enabled Nestlé to successfully enter and dominate the Japanese coffee market. In 2009, Nestlé further solidified its presence in Japan by partnering with Japan Post to launch the postable KitKat, allowing people to mail KitKats to wish students well before their examinations.
Today, companies across different industries have hired designers and acquired design agencies to incorporate design into their corporate culture. By bringing the design and marketing teams to work together, they can strengthen both the product and the brand, resulting in happy customers and bigger profits. This collaboration draws upon each team's expertise and insights, avoiding conflicts and misunderstandings.
In a traditional business structure, designers relied on market researchers for insights about the customers and reported to marketing managers. However, in the modern business landscape, a common research team for user and market research helps keep designers and marketers on the same page, preventing duplicate efforts and bringing cost savings to the company.
Design thinking and marketing have the same overarching goals - delight customers at a profit - but differ in perspective and approach. Design thinking approaches problems with the user first, while marketing takes a business-first approach. By combining these two perspectives, companies can create products and marketing strategies that truly resonate with their customers.
As customers, especially millennials and Gen Z, now expect brands to take a stand on issues, not only must teams work together to cater to the customer's experience, but they also need to take a moral stance on geo-political and socio-cultural issues. Companies have pledged to switch to new or renewable energy sources and source their raw materials ethically, in response to concerns about unsustainable and unethical business practices.
Businesses can collaborate and create a common brand vocabulary, matching the tone of the onboarding messages within the UI of a mobile app with that of the brand's advertisement campaign, and creating promotional strategies that highlight how the product solves customers' pain points. By doing so, they can build strong, meaningful relationships with their customers, fostering brand loyalty and long-term success.
In 2019, a group of CEOs of major companies issued a statement on "the purpose of a corporation" during the Business RoundTable and redefined the core values of businesses, stating that companies should no longer advance only the interests of shareholders. They must also invest in their employees; protect the environment; deal fairly and ethically with their suppliers; and support the local communities that they are a part of. This shift in perspective reflects a growing trend towards businesses prioritising social responsibility and ethical practices, aligning with the expectations of today's consumers.
[1] "Nestlé's Success in Japan: The KitKat Story," Nestlé, 2017, https://www.nestle.com/media/news/nestl%C3%A9s-success-in-japan-the-kitkat-story
[3] "Nestlé in Japan," Nestlé, 2020, https://www.nestle.com/brands/nestlé-in-japan
[5] "Nestlé's Global Strategy for Success," Nestlé, 2018, https://www.nestle.com/media/news/nestl%C3%A9s-global-strategy-for-success
- Nestlé's cultural immersion and anthropological research in the 1970s, combined with creative marketing strategies, helped transform coffee into a staple beverage in Japan.
- Today, companies across various industries collaborate by integrating design and marketing teams to strengthen their product offerings and brand, fostering customer satisfaction and profit growth.
- In a modern business landscape, a unified research team for user and market research keeps designers and marketers aligned, thereby preventing unnecessary costs.
- With customer expectations evolving, particularly among millennials and Gen Z, businesses must collaborate not only to cater to the customer experience but also take a moral stance on geo-political and socio-cultural issues.
