Value slippage in brand transformation: a conceptualization

Abstract

Purpose – The purpose of this paper is to explore brand transformation and the value slippage that can ensue. Design/methodology/approach – This is a conceptual paper drawing upon a solid bibliographic base; its intended contribution is to create a linkage among constructs. It mobilizes a socio-economic framework which enables the multiple transformations of the brand to be monitored. Two case vignettes of Nutella brand are used to discuss this brand transformation framework. Findings – The framework identifies four key brand transformation practices: brand appropriation by consumers forming a brand community, brand “surfeiting” through brand community actions, brand genericization throughout the society and brand regeneration in the market. The discussion highlights four categories of value slippage effects that enable us to ascertain whether the use value generated by the brand community slips – or does not – to another actor who captures it in the form of use or exchange value. Research limitations/implications – This paper is a conceptual paper. Practical implications – The challenge for the firm is, therefore, to play an active role in these dynamics to gain ownership of new value that emerges beyond its confines and to offer its shareholders and/or external investors with new spaces within which to grow the value of their capital. Originality/value – Value slippage concerns the way any actors involved in these processes, particularly brand community members, exploit brand transformation for their own benefit.