Cult brand

From CEOpedia | Management online

Cult brand is a brand which is represented by a loyal customer base who perceive themselves as co-creators of brand popularity and have strong connection with the brand. Cult brands aim to develop significant and distinctive bonds with their customers (Chanda, Moharir, 2020). Cult brands influence not only the buying habits and decisions but also stand as an important part of life and identity of their followers (Saviolo, Marazza, 2012).

Cult brand characteristics

To achieve their goal, cult brands use typical marketing elements of communication (Look, Say, Feel) in a unique way and they are able to set specific standards in their sectors through variations and uniqueness of those elements (Schneiders, 2011). Furthermore, in the mind of Cult brand followers there is no other product or service on the market which could satisfy or substitute their chosen brand. To become a Cult brand, companies have to put a lot of time and effort through their offerings to provide and appear for their consumers as a brand which is worth their admiration (Ragas, Bueno, 2002).

For proper understanding of Cult brands, the term loyal customer and brand community should be introduced. A loyal customer is a person who:

  • Purchases from a specific brand regularly
  • Make purchases across service and/or product lines
  • Refers others
  • Is proof from being pulled by the offer of the competition (Griffin, 1995, p. 5).

While the brand community is specified, non-geographically connected community, which is founded on a structured set of social relationships among brand followers and admirers (Muniz, O'guinn, 2001).

Key early findings

The strength and reliability of Cult brands have its roots in Maslow’s Hierarchy of needs. In this concept, needs had to be fulfilled sequentially from bottom to the top (psychological, safety, belonging and love, esteem, cognitive, aesthetic, self-actualization). Cult brands fulfills the higher needs (esteem, social interaction and self actualization). This has a great impact on building mentioned customer loyalty as higher level needs might influence the future human behavior much stronger than lower needs (Ragas, Bueno, 2002). In 2002 Ragas & Bueno proposed "7 Golden Rules of Cult Branding" in which the characteristics of Cult brands are explained.

  1. "Consumers want to be part of the group that is different
  2. Cult brand innovators show daring and determination
  3. Cult brands sell lifestyles
  4. Listen to your customers and create Cult brand evangelists
  5. Cult brands always create customer communities
  6. Cults Brands are inclusive
  7. Cult brands promote personal freedom and draw power from their enemies."

This set of rules can be either used as a guideline for developing a Cult brand or to verify the status of an actual Cult brand.

Examples of cult brands

Apple, multinational technology company

Apple has become a synonym for successful creation of cult brands around the world. The company was also analyzed by many researchers in that topic (Ragas, Bueno, 2002). Focus on products aesthetics and functionality with a combination of marketing mix based on feedback of their customers and continuous improvement. These characteristics along with slogans such as "think different" strongly resonate with previously mentioned self-actualization and desire for manifestation of individuality of their customers (Belk, Tumbat, 2005).

Harley-Davidson, motorcycle manufacturer

This famous company has always been associated with a sense of freedom, expressing the inner self, passion and power. The brand became iconic during the Second World War. Nowadays, the community of brand users is built on diverse communities all over the world. Over the years the company took care of their customer communities by organizing many different events for their actual and potential customers. Furthermore, the person who buys a product of Harley’s desires not only the good quality motorbike but also traits which are associated with it (Kaushik, 2012).

Vans, manufacturer of skateboarding shoes and related apparel

The company started to produce and sell shoes in 1966. At first, products were designed for everyday use for all potential customers. However, a few years later the emerging culture of skateboarders from southern California started using Vans shoes for their favorite sport. The company decided to listen to a new group of consumers and try to meet their needs and expectations. Since then, the company has been investing a lot of funds for growing their community through organizing sport events, building skateparks or educating the youth about safety in sports activities. Vans is also believed to be the first big company which decided to sponsor skateboarders so they could financially rely on their skateboarding hobby (Ragas, Bueno, 2002).

Oprah, television talk show

Cult brands do not always have to be strictly connected with providing specific products or services. As it is in the case of Oprah, It may include influential people. The Oprah Winfrey Show which was rapidly growing in audience after 1986. The debates and topic of discussions were admired by the public, while her advice and recommendation of books were considered as highly influential for the audience (Ragas, Bueno, 2002).

Advantages of Cult brand

Cult brands offer a variety of advantages, including:

  • Increased brand loyalty and long-term customer relationships: Cult brands build strong loyalty with their customers, and these customers tend to remain loyal for a long period of time. They also drive word-of-mouth marketing, which can be extremely effective in increasing brand awareness and driving sales.
  • Enhanced brand image: Cult brands are often associated with high quality and unique products and services, which can help to establish a distinct and powerful brand image.
  • Greater customer engagement: Cult brands have a unique ability to engage and connect with their customers, creating a strong community of followers who are passionate about the brand. This helps to build customer trust, loyalty and advocacy.
  • Increased profitability: Cult brands often have a strong following, which can lead to increased customer loyalty and repeat purchases. This can result in higher profits for the brand.

Limitations of Cult brand

  • One of the limitations of cult brands is that they need to invest heavily into marketing and promotions in order to maintain their cult status. Cult brands also need to constantly innovate and come up with new products and services to remain relevant in the market and keep their customers engaged.
  • Another limitation of cult brands is that they are often associated with a niche market and thus do not appeal to a wide range of customers. Cult brands also require a high level of commitment and dedication from their customers which can be difficult to achieve.
  • Cult brands also face the challenge of maintaining their status over a long period of time and can easily become dated or irrelevant if they fail to keep up with the changing tastes and preferences of their customers. Furthermore, cult brands may also face competition from new and emerging brands which can lead to a decline in their popularity.
  • Lastly, cult brands are often hard to quantify and measure due to the fact that their success is largely based on the emotional connection that their customers have with the brand. This makes it difficult to accurately evaluate the performance of cult brands in terms of their financial success.

Other approaches related to Cult brand

  • The experiential approach: This is an approach that focuses on the "experience" of being a customer or fan of a cult brand. It emphasizes creating a unique customer experience through immersive customer engagement, innovative products and services, and providing customers with a sense of belonging and community.
  • The emotional approach: This is an approach that emphasizes the emotional attachment customers have with a brand. It highlights the power of storytelling, the use of customer-centric marketing campaigns, and the ability of a cult brand to evoke strong emotions in its followers.
  • The customer-centric approach: This is an approach that puts the customer at the center of the brand and emphasizes customer feedback and engagement. It focuses on understanding customer needs and preferences, providing personalized customer service, and continuously improving the customer experience.

In summary, other approaches related to Cult brands include the experiential, emotional, and customer-centric approaches. These approaches emphasize creating a unique customer experience, evoking strong emotions in customers, and putting customer feedback and engagement at the center of the brand.


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References

Author: Wojciech Kleszcz