Category: Beloved Brands Explained

How severely damaged is the Toronto Maple Leafs brand?

leafs-badI think the Leafs should be a little worried about the health of their brand. While they have been bad for the entire century so far, this year feels even more disconnected and puts them at risk, if things are not fixed. There are major signs of brand health issues, which usually shows up in advance of any issues with brand wealth. But I think with a quick shot of the optimism drug over the summer, the crazy Leaf fans will be hooked again.

Here’s the brand health issues that should raise concern:

  • Leaf game not shown on TV?  Last Saturday, Hockey Night in Canada decided not to air the Leafs game on the main network for the first time in forty years. With TV media, there are so many games on TV and on-line, that the big Saturday night game is not the same. In fact, the biggest risk now is that I can see 82 games of any team I want.  
  • No sell out? This past Monday, the Leafs failed to sell out for the first time in 15 years. While giving up a little revenue for not selling out, the bigger risk here is that if tickets are going for $30, then it takes away the mystique of going to the game. The good news is the Leafs have announced they won’t raise ticket prices. I love that they actually felt compelled enough to announce this, which shows the true power of the brand.  
  • Fans cheering for the Leafs to lose: Not only are the Leafs tanking this season to get a good draft pick, the fans are cheering for the opponents so that the Leafs do lose. If the Leafs are bad again next year, the fans may again cheer against the Leafs.  If this goes on for 5 years, do these fans go find another team?
  • Fans are mad at the current team: Fans are so enraged at the current crop of Leafs that they continue to boo the best players and have thrown sweaters on the ice in dis-respect of the team. The players took it upon themselves to “not salute the fans” as their retribution. It’s never good to go to war with the fans, when the only thing you have is fans. 

The Leafs brand is on pause this year. The fans are on hold, waiting to see what happens next. I believe if the Leafs get rid of a few players, draft a big name (even if it’s not McDavid) and get a big name coach, they would create the perception that they are moving in the right direction. As we discuss below, the Leafs are not really focused on winning the cup, but rather giving the illusion and optimism that they “could” win the cup. 

The success of the Leafs brand defies logic

When we look at the most valuable sports franchises around the world, whether it’s Ferrari, Manchester United, Real Madrid, New York Yankees, Los Angeles Lakers or New England Patriots, they usually have one thing in common:  THEY WIN.  And in most cases, they win a lot. We’ve never really found out what happens to those brands when they lose.  And then there’s the Toronto Maple Leafs who recently joined the ranks of the most valued brands, now worth an estimated $1.2 Billion. 

  • The last time the Leafs won a hockey championship was 1967, when Lyndon Johnson was President, The Beatles were releasing the Sgt Pepper’s album and Wal-Mart only had 24 stores (all still in Arkansas). It was even 8 years before Justin Bieber’s mom would be born.
  • The Leafs have made the playoffs once since 2004. None of their current players were even in the league in 2004. And they are the only NHL team not to make the playoffs during those years.
  • There were two major work stoppages in the NHL in 2005 and 2012–one wiped out an entire season, the other a half season. In both of those years, the value of the Leafs jumped up. And yet, since 2004, the value of the Toronto Maple Leafs has gone up from $280 Million to $1.2 Billion.

So clearly for the Leafs, actually playing and winning the games doesn’t really matter to value of the Leafs brand. Yes, Apple’s market value has gone up at a faster pace, but they’ve launched iTunes, iPod, iPhone, iPad and the Macbook during that time.  

Most great brands have a vision for the future: what’s the Leafs brand vision?

Like any sports team, the Leafs will state their vision of “we want to win the Stanley Cup”. It sounds good. It’s what you’re supposed to say. Proof for what the real vision might be in the fact that for past 15 years they were owned by a pension fund and they rewarded their President financially, not for how the Leafs did on the ice, but how well the Leafs did off the ice. And now they are owned by a media conglomerate who sees the Leafs as content to get the millions of insane Leafs fans watching in person, on TV and on-line. I believe a more appropriate Brand Vision for the Leafs is “to be the most beloved sports franchise” or even a stretch “to be the most valued sports franchise in the world”. 

Does winning matter?  Yes, but it’s a strategy to help the vision of being the most loved or most valuable sports franchise. It’s the “how” you get to the vision, but not the vision itself. The hook is to appear that you are doing the right things to try to win the cup–enough to keep the fan base engaged.

Holding the Leafs up to the principles of a beloved brand

I once had an economics Professor who said “economics proves that what happens in real life can actually happen in theory”. Well, I usually use the Apple brand to prove how the theories of Beloved Brands work, but let’s take the Leafs brand on a test run and see how they line up.

First, we believe that consumers connect with brands based on a “big idea”. That’s the tough question for the Leafs: what is their big idea? Is it the heritage/history, being the home team of the biggest hockey market or the great underdog story?  At times, it’s been the “loveable losers”, where the mediocre/good players like Palmateer or Vaive become legends in the community. But that’s still not enough to make the brand that connected. The big idea during Steinbrenner’s Yankees was “we we will do whatever it takes to win–at any cost” where as the Montreal Canadiens are all about “we maintain the pride and dignity of history and we’ll do what’s right in our pursuit of victory”. It’s hard to truly see a big idea to connect with the Leafs. While most fans have this nagging feeling in the back of their mind that the Leafs will never win in their lifetime, I believe they cheer for the Leafs “to stay engaged enough just in case there is that once in a lifetime chance to win the cup”. So the Leafs are more like a potential “once in a lifetime eclipse” that fans want to see or even a lottery ticket. The only other sports brand like the Leafs are the loveable Chicago Cubs.  If the Leafs are that “eclipse”, I’ve always debated that if they ever do win the Cup, would more people keep watching or would people stop watching. The Toronto Blue Jays may prove that once they won the World Series, the Toronto fans were like “great, so what’s next” and moved on. My guess is that I’ll never know the answer to this question, as I don’t expect the Leafs to ever win the cup.  

Once you have the big idea for your brand, you need to map out the 5 Brand Connectors to help deliver that big idea: the brand promise, strategy, brand story, freshness of Innovation and a culture that helps deliver the promise.  

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Arguably, the Leafs might be defying all 5 of these sources of connectivity. 

  • Brand Promise: Most beloved sports teams can say “we promise to deliver an on-field team that will always be competitive enough to win a championship”. The Yankees, Man U, Ferrari, the Canadiens and Real Madrid can easily say that. The Leafs promise to “win a championship” feels hollow. If that was their promise, the brand would be a complete failure. Fans would walk away and the value of the team would fall. Well, at least for a normal team. When fans get excited about the Leafs, the world feels better, they are happy and optimistic for the future. The real promise for the Leafs is “we’ll make you feel good even if the pursuit of victory is greater than the victory itself.” Maybe if you have that underdog spirit in your own life, you see hope in the Leafs where no one else sees hope. But the problem for this year is that when they lose, that optimism comes crashing down. A friend of mine who is a Leafs fan had a baby a few weeks ago, and posted on Facebook “when do you break it to the kid that the Leafs won’t win a Championship in his life time?” Sadly, that kid will be a Leaf fan. He now bleeds blue. And will pay thousands of dollars towards the leafs coffers over his life time. 
  • Strategy: In terms of players, the Leafs have relied the last 15 years on signing free agents. But in managing the brand, they focus on hyping up the players, they build up the optimism at the beginning of each year and keep the fan base engaged with constant communication and stay reasonably competitive to at least give hope for getting in the playoffs. The Leafs manage to keep the fan base hooked by constantly feeding them optimism. The problem this year is that they’ve fallen so far out of the playoffs the talk of re-build has the fans confused. Those players they’ve hyped turned out to be jerks, who won’t salute the fans, refuse interviews and don’t even try on the ice. It’s hard for the Leafs to hype players that aren’t well liked. 
  • Brand Story: As I was growing up, the Leafs always successfully connected the past (Johnny Bower, Bobby Baun or Daryl Sitler) to the current team. The stories stressed the values of toughness, hard work and how the underdog always over-achieved in the face of adversity. That story fit nicely to the Leaf teams of the 90s with Doug Gilmour, Wendel Clark and Felix Potvin who went to the semi finals in back to back years. However, today’s current Leaf teams are the opposite:  over-hyped, over-paid and under-achieving players like Kessel and Phaneuf, certainly not aligned to the values of toughness and hard work. 
  • Freshness: For a sports team, freshness comes through the signing of new players and then building optimism around those players. The problem is the salary cap and the current roster has the team trapped. The tanking to get a draft pick has been a good strategy as it will provide someone (McDavid or even Strome) that they can build around. You will see this summer that the Leafs will build all the optimism of a rebuild around the youthful team. And fans will buy into it.   
  • Experience: There are only two ways to experience the brand–either in person or on TV. Going to a Leaf game has a buzz and excitement to it. The tickets are usually so expensive that it is so rare for the average person to get to go. The TV games are rooted in history: “Hockey Night in Canada” at 7pm has been one of the highest rated TV shows since the 1950s. And so this year, we’ve now seen two things happen. Last Saturday, for the first time since the early 1970s, the Leafs were not shown on Hockey Night in Canada, with the CBC choosing the Montreal Canadiens game. It’s all about ratings, even though the network that shows the games owns the Leafs. And this past Monday, the Leaf game wasn’t a sell out, and on StubHub you can easily get tickets for $25. So while this is your chance to finally go to a game, no one really wants to even go.

How the Leafs make money

Like any brand, there are really only 8 ways to make more money:  premium pricing, trading up on price, lower cost of goods, efficient spending, stealing share. getting loyal users to use more, entering new markets and finding new uses for the brand.

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Pricing: Ticket prices for the Leafs are the highest in the NHL–an average of $375 over 42 home games, which is three times the average ticket price for Detroit Red Wings or even six times the price for Tampa Bay. Getting tickets to a game is nearly impossible for the average fan. Every game is a sell-out. It’s a 40 year wait for Leaf seasons tickets. These end up in people’s wills. The ACC also uses strong luxury box and platinum ticket sales to trade the business consumers up on price–so not only are they paying $1,000, they also have to order enough food and drinks to support a luxury box. If the Leafs look at an extended downturn on play or even a 5-year turnaround, it likely won’t impact average price but it may impact the # of sell outs–especially as the Leafs just experienced their first non-sellout in 15 years.  

Costs: Control of costs works in the favour of the Leafs. The NHL has a salary cap that holds teams to $60 Million per year, which is 6% of the team’s brand value. For the other hockey teams worth $200 Million, that’s 30% of their brand value. That’s a huge competitive advantage for the Leafs–still defies why they can’t win. There’s no real need for “marketing costs” as every game is on TV, with normal exceptionally strong ratings. While the ratings are only in Canada, they are such a dominant ‘country brand’ that it makes the local market all of Canada, which means it has access to 30 Million people.The Leafs receive added earned media with 2 sports TV stations, 3 radio stations and 3 major Newspapers constantly covering every move the team makes. Both sports stations hold a daily live show at lunch time. 

Share: The Leafs dominate the media landscape but end up sharing that revenue with the NHL. It’s estimated that 70% of the league revenues come from Canada–my guess is that most of that comes from the Leafs. For the Leafs merchandise sales are very strong. The Leafs announced it was changing its third jersey to be a replica of the 1967 jersey. Which means all those fans have to go out and drop another $129 on a new jersey. This past year, the Leafs have added a sports bar to the ACC, just outside the arena that has hundreds of TVs and seating for two thousand people. With a roster currently filled with unpopular players, the Leafs need a few popular players for the fans to put a name on the back to really drive up the merchandise sales.

Market Size: The Leafs have expanded the size of the market by driving sponsorship and even creating Leafs TV. The team’s sponsorship drive is incredible–carrying an astounding 50+ sponsors on its roster–including separating out the banking category into Core Banking, Wealth Banking, Credit Card banking, which allows them to get money from three separate banks. Sponsorship is a money machine. The Leafs TV expands the brand for the most loyal followers to connect even more. The Leafs have also launched a bar attached to their stadium that holds another 2,200 fans who drink and eat during the 2 and 1/2 hour game. If the crowd shrinks or the Leafs lose early each time, this bar will be clearing out by the 2nd period. 

Income statement: In 2011 with the world facing a global recession, following up on a 29th place finish in the standings, the Leafs revenue went up ELEVEN PERCENT!!!  And then they raised ticket prices. Because of the player strike a few years ago, player costs have gone down from $69 million to $57 million. Revenue up, costs down–that’s a P&L the people of Price Waterhouse dream about. A lot of the value is now connected to how much money will be made in the future.  The NHL just signed a 10 year labor contract giving the Leafs cost certainty and a 5 year media deal giving the Leafs revenue certainty. While I still don’t think the Leafs will win a championship in the next 10 years, I would bet they will hit $2 Billion.  

It’s not easy being a Leaf Fan. Yet like a drug, it’s not easy to stop being a Leaf fan.

 

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To see a more in depth presentation please read the powerpoint presentation below which is a Workshop to show brand leaders how to create a beloved brand so they can generate more power and profit for their brand.

We make Brands better.

We make Brand Leaders better.™

We offer Brand Coaching, where we promise to make your Brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. For our Brand Leader Training, we promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

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What the #*$& is wrong with McDonald’s? Here’s five things wrong.

imagesI’ve been confused about McDonald’s marketing the past year, mainly because it appears that McDonald’s is confused about their marketing. That coincides with poor business results, in a downward trend for each of the past 9 months, with February’s numbers showing a deepening issue–down 4% versus last year. “Consumer needs and preferences have changed,” the company said in Monday’s statement. “McDonald’s current performance reflects the urgent need to evolve with today’s consumers, reset strategic priorities and restore business momentum.”

McDonald’s are in desperate need for a RE-FOCUS, so they can get everyone focused on what matters the most. There needs to be an alignment of the team, a return behind their strengths and a return to the fundamentals. The issue with the culture at McDonald’s is that it’s very top-down insular culture with very little outside thinking–which is great when things are going well, but will be tough to battle through when things aren’t going so well.  

Here’s the top 5 potential things wrong with McDonald’s. 

McDonald’s is not aligned with the trend towards healthy eating. 51JW1207ZALThat’s obvious, but that was also equally obvious the past 5 years ago when they grew an average of 10% a year, even +13% the year after the “Super Size Me” movie came out. Also, there are a few examples of indulgent brands that have done well (e.g. 5 Guys), in countering the health trend, to use it as a regular escape from your diet.McDonald’s scored high marks for putting calories on their menu, but bad publicity when they fought NYC on the size of drinks they serve. So while this might be part of the decline, I’m not sure this is the main reason for the decline. McDonald’s should be able to still find growth in this market. 

McDonald’s lacks a product-identity of what it’s now the best at. I’m older so I still think of it as a fast-food burger & fries place. But the menu has become so diverse, I’m no longer sure consumers know what McDonald’s is all about. Without a main product identity where it can win, McDonald’s runs the risk of being second fiddle to everyone they compete against–second fiddle to 5 Guys on burgers, to Dairy Queen on Shakes, to Chick-Fil-A on chicken, to Starbucks on Coffee and Subway on sandwiches. A great case study for McDonald’s is what happened with Starbucks in 2009, where they closed every Starbucks for a day to re-train baristas and send a signal that they are a coffee place. Here’s what I wrote about the Starbucks Case Study: The Starbucks Come Back story: Losing their focus, only to regain it!!!  McDonald’s should re-claim the stake that they are the best burger. They should have done this the past 12-24 months before allowing 5 Guys to get to 1500 locations. They need to own the burger. 

Slide1No one wants to know how sausage is made. I know the internet is attacking McDonald’s all the time about using bleach in their burgers and pink goop in their chicken but we don’t really need McDonald’s mass media to tell us their burgers are made from 100% real beef and their chicken is made from 100% real chicken. I always assumed it was, but now that you bring attention to it, you’re kind of grossing me out. McDonald’s took it a step farther with this on-line video they produced.  Here’s what I wrote last spring: McDonald’s takes a wonderful Advertising idea…and makes a complete disaster out of it  While they might think this video works to explain what their brand is about, I find this video makes me never want a nugget again in my life. As CNN reports below, it’s not pink goop, it’s beige goop and it sure doesn’t make you hungry.   Looking at the options above, McDonald’s should be focused on the heart and the soul of their consumers. McDonald’s needs less attention on the product and more on the magic of the idea of the brand–as the fun little escape for lunch place. 

The experience is now slow and not really that cheap. Ray Kroc’s McDonald’s that grew so fast in the 1960s and 70s was vested in the strong values of quality, service, cleanliness and value. People were trained the McDonald’s way and as a customer you benefited from fast, friendly service and franchises were expected to keep a clean, well-run restaurants. The last few times I’ve been, the speed has been disastrous–you order and then wait 5-10 minutes for them to yell out your number. There is no way the service is friendly–as I rarely hear manners from a McDonald’s employee. Manners are free and can go a long way in making a difference.  

mccafe-headerThe McCafe branding and restaurant re-design. Here’s an article I wrote on McDonald’s launch into the coffee market two years ago: Can McDonald’s win the Coffee War? Not a chance. But two years later, it’s even more important to realize that not only is Starbucks winning, but the investment McDonald’s has put into the coffee launch has taken away from investing in their core fast food business. McDonald’s put major capital into putting fake fireplaces into most locations–major costs that still resemble a plastic play-land. The thing that drives me most crazy about the McCafe is they are hiding what they really are: the golden arches, Ronald McDonald’s, the Big Mac and french fries. While McDonald’s should keep a good coffee, it’s time to re-focus back on being a fast food destination. Get rid of the McCafe branding BS and just make it a product that McDonald’s has, not a separate brand logo that competes with the McDonald’s logo. 

As a new CEO takes the helm, it is time for McDonald’s to re-focus. There is a need for some creativity and investing back in creating a food experience that McDonald’s can win on. Re-train staff to be friendlier and faster for consumers Create magical brand advertising that bonds with consumers. My hope is that McDonald’s can get there–as it’s one of the hall of fame brands out there.

McDonald’s needs to find a reason for their consumers to love it again

At Beloved Brands, we run a Brand Leadership Center to train marketers in all aspects of marketing from strategic thinking, analysis, writing brand plans, creative briefs and reports, judging advertising and media. To read more on strategy, here is a workshop on HOW TO THINK STRATEGICALLY, click on the Powerpoint presentation below:

We make Brands better.

We make Brand Leaders better.™

We offer Brand Coaching, where we promise to make your Brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. For our Brand Leader Training, we promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

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Is it time we admit that the Apple BRAND is better than the Apple PRODUCT?

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Apple is clearly the brand of our generation. In our house, we have an iMac desktop, 2 iPads, 3 iPhones, and two MacBooks.  I love Apple. But this past spring, as my phone contract expired, I started to wonder if I get the iPhone 5S or wait for the iPhone 6.  I was a free agent, and started to look around. I looked at the Android, but like many “Apple fans”, I viewed them as the competition, like a NY Yankee fan might view the Boston Red Sox. The more I dug in, the more I realized the Android phone was quite better than the iPhone: bigger screen, faster processor, better camera.  So I bought a Samsung Galaxy Note 3. Whaaaat? That’s right. A Samsung. I felt like a cult member who snuck out of the compound one night and drooled when I saw the Samsung phone. I could see the Galaxy was light years ahead of my iPhone.  Now that I see the iPhone 6, I’m glad I bought the Samsung instead of waiting.  

Yes, the Apple iPhone 6 news kinda fizzled, but does that matter anymore?

I’m no tech expert, but the iPhone 6 feels a very incremental technology. I’m sure it does a few things I’m not aware of or could appreciate. Financial analysts were so bored by the launch, many downgraded the stock. Yes, the Apple stock price is extremely high, but maybe it’s time for the stock to stop living and dying based on the next great launch.  And maybe, it’s time for us to realize that Apple has shifted from a product driven brand to an idea driven brand.  The real reason people buy Apple is the BIG IDEA that “We make technology so SIMPLE, everyone can be part of the future”. With Apple, it has become less about how we think about the product and more how we feel about the brand. While Samsung has a better product than they do a brand, Apple now has a better brand than they do a product.  Samsung can’t get past talking features instead of benefits, offering almost zero emotional connection beyond the product.  Apple has created such an intensely tight bond with their consumers, they are more powerful than your average monopoly. Apple uses that power with the very consumers who love them, against competitors who try to imitate them and through every type of media or potential key influencer in the market. Below we have mapped out the Brand Strategy Road Map for the the Apple brand.  

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Apple isn’t really a technology leader, and likely never was. Yes, Apple had an amazing decade of new products from 2001-2011 that gave us the iPod, iTunes, Macbook Air, iPhone and iPad, but Apple is 
a quick follower who figure out the mistakes the technology leaders make and then cleans them up for the mass market. Apple exploits the fact that the first to market technologies are so badly launched (mp3 players, on-line music and tablets) the average consumer never really sees them, leaving the perception that Apple is the innovator. Apple’s product strategy is: “We bring technology that is simple and consumer friendly across a broad array of electronics products. Products have simple stylish designs, user-friendly functionality, convenience and speed.”  Apple’s brand story, told through great advertising like “Mac vs PC” is: “Technology shouldn’t be intimidating or frustrating. We make it simple enough so you can be engaged right away, do more and get more, with every Apple product you are use.”   As an example below, the  beautiful ads over the past year are less about the product features and more about how the brand makes you feel.  

The most Beautiful Apple Product Apple is now their P&L statement

Maybe we just need to relax on these Apple launches and admire Apple’s Profit and Loss statements.  Apple is going to sell about 80 million iPhone 6’s and I bet the iPhone 6 will be under many Christmas trees this year. Stores continue to be packed–it’s tough to even get an appointment.  The Apple retail stores have the highest sales per square foot, almost twice the #2 store, which is Tiffany’s selling diamond rings.  

Apple is now a huge mass market corporate brand, with a market capitalization of $600 billion, 3 times the value of companies like Coke, Procter & Gamble, Pfizer and IBM.  Apple has moved from the challenger type brand to the “king of the castle” brand. Back in the 1980s, IBM was the “drive the BMW, wear a blue suit with polished shoes” type brand, while Apple was “comfortable in your VW Bug, tee-shirt and sandals” brand. Apple was the alternative, anti-corporate, artist. But that’s changed. As much as Apple fought off and won against the corporate arrogant brands like IBM, Microsoft and Sony, they’ve now become that very type of corporate brand.

At Beloved Brands, we believe the more loved a brand is by it’s consumers, the more powerful and profitable that brand can be.  The best example of this model is the Apple brand. 

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In researching the Apple brand, and as a true brand geek like me, when I opened up their P&L statement I almost gushed:  I drooled over the compound annual growth rate, stared at the margin % and was in awe of how their fixed marketing spend stayed constant as the sales went through the roof.  It’s the P&L that every Brand Leader wants to leave for the next guy.  

Apple Brand > Apple Product

At Beloved Brands, we run a Brand Leadership Center to train marketers in all aspects of marketing from strategic thinking, analysis, writing brand plans, creative briefs and reports, judging advertising and media. To read more on the programs we offer, click on the Powerpoint presentation below:

We make Brands better. We make Brand Leaders better.™

We offer Brand Coaching, where we promise to make your Brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. For our Brand Leader Training, we promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

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How to create and tell the story of your Brand

Sometimes, Brand Leaders write their strategic documents in such a boring way, others have a hard time following.  If you as the Brand Leader are the only one who understands your brand, then you’re in trouble. The Brand story should distill everything you know about your brand (the vision, purpose, values, objectives, strategies, tactics, target market, insights, rational and emotional benefits, reason to believe) and organize it into something that is digest-able for everyone who might touch the brand–whether that’s consumers, advocates, influencers, employees, agencies, retailers or the media. 

So what makes a good story?

Before getting into your Brand story, think of all of the great Super Hero stories of Batman, Spiderman or Wonder Woman and you see some commonality in what makes a good story in general.  For this purpose, let’s use the fundamentals of a good Super Hero story and try to match up all the brand strategic inputs you may have to help tell the story. 

The basis of the Super Hero story usually starts with a conflict of Good versus Evil. There needs to be an Enemy and a Hero.  

Most brands started as products or services that handled some functional problem in the market, but as they matured and became more closely connected to their consumers, they evolved into a Big Idea, that fulfills consumers’ emotional needs. brand idea evolutionAnother way to say it, most great PRODUCTS were invented to solve a rational PROBLEM in your consumers’ daily life. Most great BRANDS solve an emotional ENEMY in your ongoing consumers’ life. The question you likely never ask is: who is the Enemy of your consumer? The conflict and resolution sets up the Big Idea of the story.  If you are the Apple brand, then you fight off the enemy of FRUSTRATION on behalf of your consumer. Unless you work in IT, you likely find computers extremely frustrating. We have all sat at our computer wanting to pull our hair out. Spending 38 minutes to figure out how print, getting Error 6303 message that says close all files open and reboot or buying a new computer and you need to load up 13 disks and 3 manuals to read before you can even email your friend to tell them how amazing your computer is. Apple has recognized the FRUSTRATION consumers go through and realized it was in the way of many consumers experiencing the potential of communications through computers. 

There is a substantial back story to explain what makes up the Super Hero.

There is a clear vision for a better future, a purpose to explain why the hero does what they do, and a set of values to explain what is right and wrong.  A brand should also be able to articulate their Vision for the next 10 years, The most successful brands start with a purpose driven vision (why) and match the strategies (how) and the execution (what) to the vision.  Start with the Question of WHY do you do what you do? If you are Apple, the answer would be “At Apple, we believe in challenging the status quo, we believe in thinking differently. We challenge ourselves to make a dent in the universe.”  What do you get for your brand, when you answer the question of “why are you in this business?”.

A good Super Hero story saves someone. A good brand should as well.  Each story also has a distinct cry for help.  

As Steve Jobs said: “You’ve got to start with the customer experience and work backwards to the technology. You can’t start with the technology and then try to figure out where you’re going to sell it”  It’s important to tightly define who you will save and it starts with those who are the most motivated by what you do.  Pick a focused target market. Realizing not everyone can like you is the first step to focus on those that can love you. Too many times, Brand Leaders blindly pick an idealized target market based on size and wealth of the target, figuring that will offer the highest return. However, going after the biggest potential target can sometimes lead to failure because they are already being courted by everyone else.  And that large target when they might not like your product is just a recipe for failure. I like to challenge Brand Leaders to focus on figuring out who are the consumers that are already motivated by what you do. That’s the perfect match up to your brand.  You have to matter the most to those who really care.  Just as the super hero always responds to a cry for help, the Brand must listen to the what they are saying. The best way to frame a consumer insight is to get in the shoes of the consumer and use their voice. Insight comes to life when it’s told in such a captivating way that makes consumers stop and say “hmm, I thought I was the only one who felt like that”.  Insight is about  “seeing below the surface”. To get deeper, keep asking yourself “so what does that mean for the consumer” until you have an “AHA moment”. What are the beliefs, attitudes or behaviors that help explain how they think, feel or act in relationship to your brand or category.  What I recommend to Brands is that they frame insights in quotes and use the word I, forcing you to be in their shoes and using their voice. For a Bank with long hours, the insight would be: “I am so busy driving my kids around, I can never get to the bank during banking hours. I wish there was a bank that worked around my life, rather than me working around the banks’ life”.

A Super Hero is different than everyone else.  

For a Brand in a competitive world, you have to realize that no one brand can do it all. You have to decide on what you want to be from four choices: better, different, cheaper or else not around for very long. usp-2-0-2Giving the consumer too many messages about your brand will confuse them as to what makes your brand unique. Trying to be everything is the recipe for being nothing. Trying to do everything to everyone makes you nothing to no one. It just spreads your resources and your message so that everything you do is “ok” and nothing is “great”. With a long to-do list, you’ll never do a great job at anything. And in a crowded and fast economy, “ok” never breaks through so you’ll never get the early win to gain that tipping point that opens up the gateway to even bigger success

There is some super power that makes them even better, without being vain. 

Just like the Super Hero knows they can help, the Brand also has to be able to tell the story of how they help out. Doing a Customer Value Proposition (CVP) helps to organize your thinking as a great tool for bringing the benefits to life.  slide1-4

  • Get all of the consumer insights and need states out. 
  • Match them up against the list of the best features the brand offers. 
  • Find the rational benefit by putting yourself in the shoes of the consumer and seeing the brand features from their eyes: start asking yourself over and over again “so if I’m the consumer, what do I get from that?”. Ask it five times and you’ll see the answers will get richer and richer each time you ask. 
  • Then find the emotional benefit by asking “so how does that make me feel?” Ask that five times as well, and you’ll begin to see a deeper emotional space you can play in and own. 

A good story is one that touches people in an emotional way. 

People tend to get stuck when trying to figure out the emotional benefits. I swear every brand out there thinks it is trusted, reliable and yet likeable. It seems that not only do consumers have a hard time expressing their emotions about a brand, but so do Brand Managers. Companies like Hotspex have mapped out all the emotional zones for consumers. I’m not a researcher, but if you’re interested in this methodology contact Hotspex at http://www.hotspex.biz Leverage this type of research and build your story around the emotions that best fit your consumer needs. Leveraging Hotspex, I’ve mapped out 8 zones in a simplistic way below

Slide1A Good Super Hero has to make difficult choices. They can’t do everything. It’s all about choices.

Every brand is constrained by resources—dollars, people and time.Focus makes you matter most to those who care. Focusing your limited resources on those consumers with the highest propensity to buy what you are selling will deliver the greatest movement towards sales and the highest return on investment for those resources. When you focus on the right choices, you end up with:

  • Better ROI: With all the resources against one strategy, one target, one message, you’ll be find out if the strategy you’ve chose is able to actually move consumers drive sales or other key performance indicators. 
  • Better ROE: Make the most out of your people resources.
  • Strong Reputation: When you only do one thing, you naturally start to become associated with that one thing—externally and even internally. And, eventually you become very good at that one thing.
  • More Competitive: As your reputation grows, you begin to own that on thing and your are able to better defend the positioning territory
  • Bigger and Better P&L: As the focused effort drives results, it opens up the P&L with higher sales and profits. And that means more resources will be put to the effort to drive even higher growth.

Strategic Thinkers see questions before they see solutions. They map out a range of “what if” decision trees that intersect and connect by imagining how events will play out. They reflect and plan before they act. They are thinkers and planners who can see connections. They use knowledge and judgment about the long-term health and wealth of the brand. 

A good story is well-organized, has a consistent tone throughout the story and has layers that support the story.  

There is a Focus to the story: Using one motivated target market and one Unique Selling Proposition based on need states allows you to drive all your resources against strategies that will move the brand towards being more connected and loved. The story has an Early Win: Able to move a motivated target towards sales and share, plus establishing the brand’s positioning with a balance of rational and emotional benefits. The brand now has momentum and growth.There is this point in the story where you can start to Leverage those early wins into something even bigger: When you can take the emotional bond and translate it into a source of power the brand can use against all the forces in the market. And there is a Gateway to something bigger: When you are able to take the brand power and drive strong growth and profits. 

If you were to write the Starbucks, here’s how it might look;

  • Vision: Cherished meeting place for all your quick service food needs
  • Goals: Increase Same store sales, greater share of requirements from Starbucks loyalists
  • Key Issue: How do we drive significant growth of same store sales?
  • Strategy: Move Starbucks loyalists to lunch with an expanded lunch menu.
  • Tactic: Light lunch menu, increase desert offerings.

The strategic way I like to organize a brand is starting with the Big Idea for your brand and then ensuring the brand promise, brand story, strategy, freshness (innovation) and the experience (culture and operations) all match up to the Big Idea. If you are Apple, this is how you’d lay out the guts of your story.  The idea is about taking the complexity out and making it so simple that everyone can be part of the future.  And then Apple lines up the promise, strategy, story, freshness and experience behind that big idea.  So if Apple is about simplicity, then my check out experience buying an Apple product better be simple.  

Slide1No Super Hero goes alone.  They always have help.

And just like running a brand, the Brand Leader needs to be able to communicate the brand story in a way that elicits help from all the employees, the agencies.   

So how do we tell the story?

Here is a story board format that you can use to frame your story, whether telling it through a Powerpoint presentation, a video or even through a two page word document.  The story makes it easy for everyone to digest and everyone to continue telling for those they influence.  If it’s to your sales colleagues, they may have to explain it to customers, if it’s to your agency, they may have to convey it to their art director, and if it’s to advocates, they to portray it to their followers.  Here’s a simple 15 questions to be asking

Slide1And if we were to layer in where each of these answers is hidden away in your plan, you can use this as a cheat sheet.

Slide1Depending on who your audience is for your story, you may wish to only use parts of this story board.  For instance, if you’re talking to the Board of Directors you would use the the top part where you talk vision and purpose and values.  If you are setting up the external communication of the brand, you’d talk target, insights and benefits.  If you’re talking about go to market execution, you’d outline the plan, strategies and how the organization executes.  Having these 15 answers allows Brand Leaders to keep the story consistent and aligned. 

 

Story Telling is the Simplest articulation of the complexities of your Brand 

 

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How loved is your brand?

We believe a brand’s source of power is the emotional feelings it generates. With that power comes added profitability.

In the consumer’s mind, brands sit on a Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand for Life. At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans. It’s this connection that helps drive power for your brand: power versus competitors, versus customers, versus suppliers and even versus the same consumers you’re connected with. The farther along the curve, the more power for the brand. It’s important that you understand where your brand sits on the Love Curve and begin figuring out how to move it along towards becoming a Beloved Brand. With the power of connection, the brand can leverage that power into increased growth and profits. To read more, follow this presentation.

 

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As a brand, you must be LIKED before you can be LOVED

So while I’m desperately trying to convince Brand Leaders that being more loved will make you a more powerfully connected brand, and enable you to drive higher profits, I feel that I have to remind everyone that Love Takes time to build, and you have to be LIKED first, before you will ever be LOVED.  To relate it with human behavior:  Yes, hearing the words “I love you” is something we all dream of, but hearing them on the first date is a bit creepy, don’t you think.  Just like in our personal relationships, we need to get to learn the brand, be able to trust and rely on the brand, and quite honestly we use our brains to figure out if it is THE ONE for us.  Then we let ourselves fall in love. 

I have created a hypothetical curve I call “The Brand Love Curve”.  In the consumer’s mind, brands sit on a Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand for Life. At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans.love-curve-detailed4

It’s this connection that helps drive power for your brand: power versus competitors, versus customers, versus suppliers and even versus the same consumers you’re connected with. The farther along the curve, the more power for the brand. It’s important that you understand where your brand sits on the Love Curve and begin figuring out how to move it along towards becoming a Beloved Brand.  With each stage of the Brand Love Curve, the consumer will see your brand differently. The worst case is when consumers have “no opinion” of your brand. They just don’t care. It’s like those restaurants you stop at in the middle of no-where that are called “restaurant”. In those cases, there is no other choice so you may as well just name it restaurant. But in highly competitive markets, you survive by being liked, but you thrive by being loved. Be honest with yourself as to what stage you are at, and try to figure out how to be more loved, with a vision of getting to the Beloved Brand stage.

Most brands that are truly beloved brands have taken decades if not a century to achieve such status.  It took Apple 30 years to truly break through to the masses. Yes it was loved by a few early on, but not by the many.  Those brands that quickly get to LOVE IT sometimes don’t last there, because when we poke holes in the brand we find little substance. Examples where brands quickly got to the love stage might include Cold Stone Ice Cream, Crocs, Benneton and maybe even the pop band “DEVO”.  (sorry Devo fans)

Before getting all emotional, ask yourself:  Why is your brand Stuck at the Like It stage?

There are seven possible reasons why you are at the Like It Stage:

  1. Protective Brand Leaders means Caution: While many of these brands at the Like It are very successful brands, they get stuck because of overly conservative and fearful Brand Managers, who pick middle of the road strategies and execute “ok” ideas. On top of this, Brand Managers who convince themselves that “we stay conservative because it’s a low-interest category” should be removed. Low interest category means you need even more to captivate the consumer.
  2. We are rational thinking Marketers: Those marketers that believe they are strictly rational are inhibiting their brands. The brand managers get all jazzed on claims, comparatives, product demonstration and doctor recommended that they forget about the emotional side of the purchase decision. Claims need to be twisted into benefits—both rational and emotional benefits. Consumers don’t care about you do until you care about what they need. Great marketers find that balance of the science and art of the brand. Ordinary marketers get stuck with the rational only.
  3. New Brand with Momentum: Stage 2 of a new brand innovation is ready to expand from the early adopters to the masses. The new brand begins to differentiate itself in a logical way to separate themselves from the proliferation of copycat competitors. Consumers start to go separate ways as well. Retailers might even back one brand over another. Throughout the battle, the brand carves out a base of consumers.
  4. There’s a Major Leak: If you look at the brand buying system, you’ll start to see a major leak at some point where you keep losing customers. Most brands have some natural flaw—whether it’s the concept, the product, taste profile ease of use or customer service. Without analyzing and addressing the leak, the brand gets stuck. People like it, but refuse to love it.
  5. Brand changes their Mind every year: Brands really exist because of the consistency of the promise. When the promise and the delivery of the promise changes every year it’s hard to really connect with what the brand is all about. A brand like Wendy’s has changed their advertising message every year over the past 10 years. The only consumers remaining are those who like their burgers, not the brand.
  6. Positional Power–who needs Love: there are brands that have captured a strong positional power, whether it`s a unique technology or distribution channel or even value pricing advantage. Brands like Microsoft or Wal-Mart or even many of the pharmaceuticals products don`t see value in the idea of being loved. The problem is when you lose the positional power, you lose your customer base completely.
  7. Brands who capture Love, but no Life Ritual: There are brands that quickly capture the imagination but somehow fail to capture a routine embedded in the consumers’ life, usually due to some flaw. Whether it’s Krispy Kreme, Pringles or even Cold Stone, there’s something inherent in the brand’s format or weakness that holds it back and it stays stuck at Loved but just not often enough. So, you forget you love them.

You have to answer those questions and figure out your brand before you just go to your ad agency and say “let’s be more emotional this year”.  Communication can help, but if you’re at the LIKE IT or INDIFFERENT stage, you need to begin crafting an idea that will help separate your brand from the pack. 

Here’s some thoughts for how to get to the LOVE IT stage.

  • Focus on action and drive Consideration and Purchase: stake out certain spaces in the market creating a brand story that separates your brand from the clutter. Begin to sell the solution, not just the product. Build a Bigger Following: Invest in building a brand story that helps to drive for increased popularity and get new consumers to use the brand.
  • Begin to Leverage those that already Love: Focus on the most loyal consumers and drive a deeper connection by driving the routine which should increase usage frequency. On top of that, begin cross selling to capture a broader type of usage.
  • Love the Work: It is time to dial-up the passion that goes into the marketing execution. Beloved Brands have a certain magic to them. But “Like It’ brands tend to settle for ok, rather than push for great. With better work, you’ll be able to better captivate and delight the consumers. If you don’t love the work, how do you expect the consumer to love your brand.
  • Fix the Leak: Brands that are stuck have something embedded in the brand or the experience that is holding back the brand. It frustrates consumers and restricts them from fully committing to making the brand a favourite. Be proactive and get the company focused on fixing this leak.
  • Build a Big Idea: Consumers want consistency from the brand—constant changes to the advertising, packaging or delivery can be frustrating. Leverage a Brand Story and a Big Idea that balances rational and emotional benefits helps to establish a consistency for the brand and help build a much tighter relationship.

The big lesson here is advertising alone can’t make you more loved. You have to have everything lined up behind the brand promise to create an experience that lines up to the story you want to tell.  McDonald’s might have great coffee, but they’ll never be a Cafe, if I have to sit in plastic chairs, beside a screaming 4-year-old who is throwing his french fries at his mom, or 8 teenagers hanging out behind me.  

I don’t think you can be rational and emotional at the same time

Yes, I am starting to see many Brand Leaders taking on the emotional areas of Brand Marketing, and I’m happy for it. But what I’m concerned at are creative briefs asking agencies to create ads that are big on emotions, but then heavy on facts about your brand. Before you even get to the communications stage with your agency, you have to understand where you sit on the love curve and why you are there. As most brands sit at the LIKE IT stage, they need to understand why they are there, before they can try to just be loved randomly. Just like in dating, you might have a blind spot that has nothing to do with advertising, so trying to create an ad that says “LOVE ME” might be like a jerk asking a girl to marry him.  A good piece of communication can only move one body part at a time: the head, the heart or the feet. Challenge yourself: do you want to target the HEAD so you can get consumers to think differently about you, the HEART to try to connect emotionally or the FEET where you try to drive action.

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If you think you can create an Ad that does all three, you are the worlds greatest advertiser in history. And if you can’t you should then focus on one at time. That’s where the Anthem will help reposition the brand (head) or connect emotionally (heart) and the Innovation spots should drive action (feet). The choice on where to focus should come from your brand’s strategy. At Beloved Brands, we use the Brand Love Curve to help determine where your Brand currently sits with consumers. If you’re at the Indifferent stage, you need to drive Trial (feet) or change their minds to see you differently. As you move along the curve, it becomes a balance of mind and heart, but driving towards Beloved, you need to connect emotionally. (The Heart) of consumers.

slide16The pathway to LOVE for a brand starts with an idea.  

Align everything on your brand behind that idea:  the promise, the strategy, the story, the innovation and the experience.  And it’s the idea that helps to create a strong bond with your consumers. That bond becomes a source of power for your brand, whether that power is with the very consumers who love your brand, versus retailers, suppliers, competitors, influencers, employees or even versus the media.  Once you’re able to generate power for your brand, you can then turn that into profit, whether driving price, cost control, market share or increasing the market size.

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The more love you create for your brand means more power and profit. 

 

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How loved is your brand?

We believe a brand’s source of power is the emotional feelings it generates. With that power comes added profitability.

In the consumer’s mind, brands sit on a Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand for Life. At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans. It’s this connection that helps drive power for your brand: power versus competitors, versus customers, versus suppliers and even versus the same consumers you’re connected with. The farther along the curve, the more power for the brand. It’s important that you understand where your brand sits on the Love Curve and begin figuring out how to move it along towards becoming a Beloved Brand. With the power of connection, the brand can leverage that power into increased growth and profits. To read more, follow this presentation.

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While testing your Ads might make you sleep better at night, gathering consumer insights will make you dream more

A challenge for Brand Leaders is to look at your research budget, and see how much of your money you spend on TESTING versus how much is spent on GATHERING insights. Slide1There is no right number, but you might be shocked that when you do so much TESTING, you just don’t have that much money left over to GATHER. I’m not advocating stopping advertising testing, especially for new campaigns, but I am advocating gathering insights before you even get into the Advertising testing roulette wheel.  

Advertising Results give a result, but do not always give the solution.  The worst thing for a Brand Leader is getting back advertising test results that either fail or are a borderline pass.  A simple look at Advertising results matrix. Obviously, the best ads come from the right insights matched up to the right creative idea, but the problem for many brands is that if you just keep TESTING ads without taking the time to GATHER insights, you see questionable results, so instead of figuring out if it’s the strategy or the creative idea, you throw out both and start again.

Slide1Once you start testing, it’s hard to stop testing. You can’t really take a time out, because you’ve likely committed to a media date and the time you took on round 1 just puts even more pressure on you to find some advertising that works. Yes, you learn from testing, but it can also create a never-ending line of confusion.  Below is the Ad Testing Roulette, which is what happens when you just keep testing ads, hoping for a good result. Because you spend more of your research dollars on testing, you never have enough money to actually learn about your consumer. Unless you do the work on insights, at various stages of the Ad Testing Roulette wheel, you just end up in the “don’t know why” stage.  

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Start with the Consumer: What is an insight? 

Our definition of Insight is Quite Different.  Insight is not something that consumers never knew before.  That would be knowledge or news, but not insight. It’s not data or fact about your brand that you want to tell.  Real insight goes a layer or two deeper to help with the cause and effect.  Oddly enough, Insight is something that everyone already knows.  Here is my definition:  Insight comes to life when it’s told in such a captivating way that makes consumers stop and say “hmm, I thought I was the only one who felt like that”.

That’s why we laugh hysterically when we see insight projected with humor, why we get goose bumps when insight is projected with inspiration and why we cry when the insight comes alive through real-life drama.  Insights help tell the story, paint the picture or inspire the creative juices.  Insights need to be interesting or intriguing.  My challenge is to think beyond specific category insights and think about Life Insights or even Societal Trends  that could impact changing behaviour.

Jerry Seinfeld is the god of insights, whether it’s his TV show or his stand up routine. There is zero shock value to Seinfeld and he never tells us anything new. In fact, everything he says is exactly what our inner self is thinking.  Slide1He just serves it up in a creative way to make us laugh. I saw Seinfeld do a 90 minute stand up routine and I giggled the entire time because I could sense that everything he said was already part of my life. There was nothing shocking, but he seemed he knows human behavior.  He connected. 

Mining for Insights

The dictionary definition of the word Insight is “seeing below the surface”. To get deeper, keep asking yourself “so what does that mean for the consumer” until you have an “AHA moment”.  What are the beliefs, attitudes or behaviors that help explain how they think, feel or act in relationship to your brand or category. 

Strategic Planners at Ad Agencies have a certain talent for uncovering insights. As margins get squeezed, too many agencies are reducing the role of planners.  As a client, that’s a big mistake.  I have always loved having a great planner on my brands.

What I normally do is bring together a collection of people who best know the brand, the business and of course the consumer.  And we brainstorm to get a collection of insights.  Insights are mined from many sources. 

  • Find insights by bringing intuition to important data points by asking: “so what does this mean” or “how do we think this happened?”.
  • Insights can come from up-close observations of the consumer, in qualitative focus groups or in observing the purchase behavior in action.  Listen to what they say and how they say it.  Capture insightful quotes that summarize a big idea, as inspiration.  
  • Insights can come from mapping out a day in the life of the consumer to understand what’s going on in their brains.  In healthcare, we found Sunday’s nights was the best time to consider a jolt to improving your healthcare, not Thursday.  
  • Insights can come from looking at consumer problems in life, by creating talking about “who is the consumers enemy?”  Picking the enemy gives your brand focus and another way of bringing insight into your brand positioning.
  • If you track Voice of the Customer (VOC), you can find some very interesting raw data from the consumer.  You can potentially mine Facebook or Twitter comments from consumers.  

Everything Starts and Ends with the Consumer in Mind

 

Is your brand beloved?  Maybe you need to take a step back and challenge yourself.  To read more about what makes a brand Beloved, click on the PowerPoint presentation below:

 

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Beautiful “Like a Girl” ad by P&G that re-defines stereotypes, will definitely move you

d7291c2d01784756_Always_Run_Like_a_Girl.xxxlargeMost days I can safely say “we are just marketers” but every once in a while, I see that we can actually have a cultural impact. We can use our platform to stand up for consumers, in this case teenage girls, and in fact, all women will be moved by this video. A new 3 minute video by the ALWAYS team at P&G is making its way around the internet this weekend with millions of views already.  My hope is that it gives you goosebumps, tears or gets you think differently.  

The insight that P&G’s team found was that somewhere in the adolescence stage, girls self-confidence plummets.  In the video, they ask both men and women over the age of 15 to depict what “like a girl” looks like, and both sexes show a stereotype and a negative association with WEAK.  And then, they ask 8-10 year old girls to “run like a girl” and they just show how they would NORMALLY run.  The insight is that somewhere between 10 and 15, girls start to see “like a girl” as an insult.  The Always brand challenges us to re-define “like a girl”.  Here’s a look:  

 

It’s one more example of where Procter and Gamble is moving, to emotionally connect with consumers.  Click on this article to see how P&G is making this change:  P&G has become really good at Emotional Advertising

I’m a dad of a 16-year-old girl, and I can see this insight.  I remember playing football in the backyard when my daughter was around 10 and she picked up the football and threw a perfect spiral about 20 yards.dove1 I just stood in awe. She’s an amazing athlete, a Dennis Rodman type basketball player who leaves nothing on the court. In 6th and 7th grade she was the regional shot put champion. And then in 8th grade, she didn’t even go out for her school team.  She was fighting those stereotypes at a very hard age to “be a girl”.  The Dove Outdoor campaign from last year really hit home with girls quitting sports in their teens because of confidence.  In today’s world of Instagram and Twitter, from what I see everyday, it’s harder than ever to get to 20 feeling good about yourself. 

Getting on the side of your consumer makes your consumer say “this brand is for me” and “this brand gets me”.  Unilever was the first CPG brands to get on the side of consumers with the Dove “real beauty” campaign–still a gold standard that many of us aspire to.

 

But in reality, CPG brands should still look beyond CPG to push themselves.  Watching Nike’s “if you let me play” ad from 1995, you can see the inspiration of this work.   This is for all the women who kick ass in sports, including my daughter.

 

Doing this type of advertising takes guts. At this point, the video is viral and gaining momentum.  This type of work comes straight out of insights gathered by the team. Insight is not something that consumers never knew before. That would be knowledge or news, but not insight. It’s not data or fact about your brand that you want to tell. Real insight goes a layer or two deeper to help with the cause and effect. Oddly enough, Insight is something that everyone already knows. Here is my definition: Insight comes to life when it’s told in such a captivating way that makes consumers stop and say “hmm, I thought I was the only who felt like that”.  This Always ad strikes that chord of women and connects with women.  

Many of us wish we could do this type of work. But how does it happen?  I don’t work at P&G but here are my guesses.  They spent more money on GATHERING insights than they did on TESTING the work.  Put it this way:  while testing your Ads might make you sleep better at night, gathering insights will make you dream more.  The brief did not say “I want a 30 and 15 second ad, plus give me a print ad I can use in-store”.  There were no claims or demo requests, and they didn’t jam in a claim at 2 minutes and 23 seconds into the video. There was no debate over pack shots, of which sku to use.  My guess is that not everyone at P&G bought into this and the work had to be sold in, to various levels by someone that believed in it.  Every great ad I was ever part of met major resistance, even doubt and rejection. That doesn’t mean you give up.  You should be more afraid of the ads where EVERYONE in your company likes the ad you want to make.    

 

If you watch this video and as a Brand Leader you say I wish I could do that, ask yourself what’s getting in your way?   The answer might be YOU!!!  

 

 

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You’ll gain more share by Fighting your consumers enemy than fighting your brand’s enemy

Slide1It is normal when a Brand Leader is in a category with intense competitive pressures to become obsessed and fixated on what their competitor is up to now.  They launch a bigger size so you launch a bigger size.  They claim fast and you claim faster.  They launch Lemon and you launch more Lemon.  You both do side-by-side demonstrations in your TV ad against each other. Pretty soon, you have both forgotten about the consumer and what they want. And as the two brands fight it out, the shares pretty much look the same as they did last year.  

We believe that a Brand is an idea that is worth loving. Our definition of a brand: “A Brand is a unique idea, perceived in the minds and hearts of the consumer, consistently delivered by the experience, creating a bond, power and profit, beyond what the product itself could achieve.” Most brands started as products or services that handled some functional problem in the market, but as they matured and became more closely connected to their consumers, they evolved into a Big Idea, that fulfills consumers’ emotional needs.

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Another way to say it, most great PRODUCTS were invented to solve a rational PROBLEM in your consumers’ daily life. Most great BRANDS solve an emotional ENEMY in your ongoing consumers’ life. The question you likely never ask is:  who is the Enemy of your consumer? 

Who is the Enemy of your consumer?

I like to push my clients to think of their consumer’s enemy.  It is a starting point to put them in the shoes of their consumer and then they start to use the voice of the consumer.  The enemy is a great way to start a connection because if done right, it shows that you understand them.  It’s not just about features that you do, but pushes you into finding the rich emotional zones that you can own.  Picking the enemy gives your brand focus and another way of bringing insight into your brand positioning.  

Starbucks fights off the enemy of a HECTIC LIFE:  Put yourself in the shoes of your Starbucks consumer, who is a 38 year old mom with two kids, wakes up at 615am, not only to get ready for work, but to get everyone in the house ready for their day.  a03e0da8-fac7-11e3-acc6-12313b090d61-medium-1She drops off one kid at daycare, the other at public school and then rushes into the office for 830am.  She drives a van, not because she wants to but because it’s a great choice for carrying all the equipment needed for after-school activities, which are soccer, dance, tutoring and ice hockey.  No one is really old enough to thank her–the only appreciations are random moments of celebration or at the end of a long day.  Just after getting both to bed, she slinks into her bed exhausted. What is her enemy?  It’s a HECTIC LIFE.  If only she had a 15 minute moment to escape it all.  She doesn’t want to run from it, because she does love her life.  She just needs a break.  A place where there is no play land, but rather nice leather seats.  There are no loud screams, just nice acoustic music.  There are no happy meals here, the drinks and pastries are not average, but have a European touch.  Not only is she appreciated, the 21 year old college student knows her name and what her favorite drink is.  Starbucks fights off her HECTIC LIFE and gives her a nice 15 minute escaping moment in the middle of her day.  Yes, the Starbucks product is coffee, but the Starbucks brand is about MOMENTS.  

Apple fights off the enemy of FRUSTRATION: Unless you work in IT, you likely find computers extremely frustrating.  We have all sat at our computer wanting to pull our hair out. Spending 38 minutes to figure out how print, getting computer frustrationError 6303 message that says close all files open and reboot or buying a new computer and you need to load up 13 disks and 3 manuals to read before you can even email your friend to tell them how amazing your computer is. Apple has recognized the FRUSTRATION consumers go through and realized it was in the way of many consumers experiencing the potential of communications through computers.  They capitalized on the frustration of PCs with the famous TV campaign of “Hi I’m a Mac,….and I’m a PC” to demonstrate issues around setting up computers, viruses, and cool applications you can use. Everything Apple does has SIMPLICITY at it’s core.  As soon as you open the box you can use it, they have compatibility with other software or external devices and eve the store set up makes it easy to check out or questions of experts. You can even take classes to learn. Yes the Apple product is about computers tablets and phones, but the Apple brand is about fighting off FRUSTRATION by making everything SIMPLE enough so that everyone can be part of the future. Here’s how Apple drives simplicity into everything they do: 

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Special K fights off the enemy of THOSE FEW EXTRA POUNDS:  As we hit our 30s and 40s, the metabolism slows down, yet we still want to look and feel our best.  The proactive preventer does everything they can to maintain a healthy life but they can still have problems with a few extra pounds.  Yes, there are so many diet programs promising to lose 50 or even 80 pounds.  You can take pills, join a gym, get needles in your butt. Everywhere you look.  It’s almost over-whelming to consumers.  But what if you just want to lose 5 or 10 pounds, for that cruise you have coming up, or just to get ready for the summer season?  What if you just want to fit into your favorite pair of jeans again?  You can’t show up to Weight Watchers and say “Hi I want to lose 5 pounds”.  `  Special K has recognized a potential niche in the market to take on those “few extra pounds” with the Special K challenge promising that if you use Special K for two meals a day, you will lose six pounds, or one jean size.  This is obviously not the miracle cure being offered by everyone, but rather it targets women doing as much as they can already, and want to TAKE CONTROL of their weight.  Here’s how Special K takes the idea of empowering women to take control into everything they do:Slide1

Use the talk of your consumers’ enemy to be more insight driven on your brand. Insight comes to life when it’s told in such a captivating way that makes consumers stop and say “hmm, I thought I was the only who felt like that”.  Stop asking who is your brand’s enemy.  At your next team meeting, start off by asking “who is our consumers enemy?” and see if it enables you to connect more with your consumer and see if it takes you into a highly creative zone?  If your team has a problem answering that question, maybe you have a problem in how you run your brand.  

So, who is the enemy of your consumer? 

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How loved is your brand?

We believe a brand’s source of power is the emotional feelings it generates. With that power comes added profitability.

In the consumer’s mind, brands sit on a Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand for Life. At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans. It’s this connection that helps drive power for your brand: power versus competitors, versus customers, versus suppliers and even versus the same consumers you’re connected with. The farther along the curve, the more power for the brand. It’s important that you understand where your brand sits on the Love Curve and begin figuring out how to move it along towards becoming a Beloved Brand. With the power of connection, the brand can leverage that power into increased growth and profits. To read more, follow this presentation.

 

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How to match up the internal and external connections of your brand.

There are too many Brands where what gets said inside the corporate office is completely different than what gets said in the marketplace.  Moreover, there are brands who only view “messaging” as something Brand does in TV ads or through logos.  At its most simple state, if you say “simple” on TV ads, then consumers should experience simplicity right away, your R&D people better be looking into new simple technologies, your technical service department should speak in simple common language, your payment check out better be simple and everyone in your entire company should be working towards simple.  This is why Apple is such a great brand.  

It starts with the Big Idea of your Brand

I’ve always heard how Brand is the hub of the organization and everything should revolve around the Brand. While it makes sense, it’s just talk unless you are managing your business based on your brand’s Big Idea throughout every inch of your organization. Everyone connected to the brand, should fully understand the brand’s Big Idea. And when I say “everyone”, I’m talking about everyone in the entire organization, including Sales, Finance, Production, R&D, HR and Marketing, as well as everyone outside the organization that’s agencies or employees at your retailers.

The Brand’s Big Idea (some call it the Brand Essence) is the most concise and inspiring definition of the Brand. For Volvo, it’s “Safety”, while BMW might be “Performance” and Mercedes is “Luxury”. Volvo has stood for safety for almost 60 years, long before safety even registered with consumers. Here is the Tool I use to figure out a Brand’s Big Idea.  The model revolves around four quadrants that surround and yet help to define the Brand:

  1. Brand’s personality: human descriptors that express the brand’s style, tone and attitude.
  2. Products and Services: features, attributes, and functional characteristics that are embedded in what we sell.
  3. Internal Beacons: the internal views or purpose of the brand, why people believe their brand can win, what inspires, motivates and challenges.
  4. Consumer Views: honest assessment of how the consumer sees the brand, the good and bad.  

big ideaHow this tool works best with a team is that we normally brainstorm 3-4 words in each of the four quadrants and then try to form those words into a sentence for each quadrant. After all 4 quadrants are filled, we then looking collectively, we begin to frame the brand’s Big Idea with a phrase that embodies the entirety of the brand. As I facilitate sessions using this tool, it’s almost magical as we see the brand really come to life.

The Five Brand Connectors

Once you have your Big Idea, you should then use it to frame the 5 different connectors needed to set up a very strong bond between your brand and your consumers.

  1. The brand’s promise sets up the positioning, as you focus on a key target with one main benefit you offer.  Brands need to be better, different or cheaper. Or else not around for very long. ”Me-too” brands have a short window before being squeezed out. How relevant, simple and compelling the brand positioning is impacts the potential love for the brand.
  2. The most beloved brands create an experience that over-delivers the promise. How your culture and organization sets up can make or break that experience. Hiring the best people, creating service values that employees can deliver against and having processes that end service leakage. The culture attacks the brand’s weaknesses and fixes them before the competition can attack.  With a Beloved Brand, the culture and brand become one.
  3. Brands also make focused strategic choices that start with identifying where the brand is on the Brand Love Curve going from Indifferent to Like It to Love It and all the way to Beloved status. Marketing is not just activity, but rather focused activity–based on strategy with an ROI mindset. Where you are on the curve might help you make strategic and tactical choices such as media, innovation and service levels.
  4. The most beloved brands have a freshness of innovation, staying one-step ahead of the consumers.  The idea of the brand helps acting as an internal beacon to help frame the R&D.  Every new product has to back that idea.  At Apple, every new product must deliver simplicity and at Volvo, it must focus on safety.  
  5. Beloved brands can tell the brand story through great advertising in paid media, through earned media either in the mainstream press or through social media.  Beloved Brands use each of these media choices to connect with consumers and have a bit of magic to their work.

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Using the Brand’s Big Idea to Create a Brand Strategic Road Map

Having the brand road map on one page can help align everyone that works on a brand.   This is especially useful when managing a Branded House or Master Brand where there are various people in your organization that each run a small part of the brand.  The road map helps guide everyone and keep everyone aligned. Here’s the one I use that has all the key elements that help define the brand, at the center-point is the Big Idea and the 5 key connectors we talked about—promise, strategy, story, freshness and experience.

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Key Elements of the Brand Strategy Road Map

  • Brand Vision:   End in Mind Achievement.  What do you want the brand to become?  Think 10 years out: if you became this one thing, you would know that you are successful.  Ideally it is Qualitative (yet grounded in something) and quantitative (measurable) it should be motivating and enticing to get people focused.  
  • Purpose: Start with what’s in you:  Why do you exist?  Why do you wake up in the morning?   What’s your purpose or cause behind your brand?   Very personal and connects to your own story.  In the spirit of Simon Sinek:  “People don’t buy what you do, they buy why you do it”.
  • Brand Values How do you want your people to show up?   What type of service do you want?  How much emphasis on innovation?   What type of people do you want to hire?  What behavior should be rewarded and what behavior is offside.  Having the right Brand Values will help you answer these questions.   The Brand Values become an extension of what the Brand Leader wants the brand to stand for.
  • Goals: While the vision serves as a 10-year big goal, it’s also important to have annual goals to push and challenge everyone in the organization.  It’s a great way to ensure milestones on the pathway to the vision are being hit. Goals should be S.M.A.R.T. (specific, measurable, attainable, relevant and time-sensitive)
  • Strategies: These are potential choices you must make in HOW to get to the vision. Good strategy has focus, early win, leverage and a gateway to something even bigger. There are four main types of strategy: 1) consumer oriented 2) competitive oriented 3) operational and 4) financial. My recommendation is that Master Brands have 3-5 key strategies, but never more.  This forces you to focus.  
  • Tactics: Activities and executions that fit under the strategies. This could be advertising, media, sales, events, social media and professional influence.   I recommend focusing on 3 key tactical areas per strategy, continuing to make sure that you focus.  

The Big Idea helps Guide the Brand’s Management

 The Big Idea should help frame 

  • Brand Plan that drives the business for the upcoming year or the next 5 years 
  • Brand Positioning that connects to the consumer through marketing communications Slide1
  • Customer Value Proposition that links the consumer needs to the benefits of the brand 
  • Go-To-Market strategy that frames the distribution and the selling process 
  • Cultural Beacons that help define the brand internally through values, inspiration and challenge and finally 
  • Business Results, with each brand offering a unique way that it makes money.  

So if the brand’s Big Idea really works well to drive the organization, then if you are in finance at Volvo, you should be thinking about how to make safe cars cheaper, if you are in HR at Starbucks, you should be hiring people that deliver moments and if you are working at the Genius Bar at Apple, you have to make sure your language choices are simple and easy for every type of consumer to understand. Taking this even beyond the organization, if you are working at Dick’s sporting goods, you should know what makes Taylor Made such a great golf club. Everything should float down and throughout every inch of the organization from the brand’s Big Idea.

When you begin to blow this out one step further, you can start to see where everyone in your organization should align and understand how they can deliver the brand’s Big Idea.  Slide1

Telling the Brand’s Story Internally:

 

Use the Big Idea to set up the Culture through Brand Values

In managing your Brand’s Big Idea you must manage the Brand Story internally which helps creates the experience through the culture, innovation pathway, and service levels, and then manage the Brand Story externally establishing the brand’s positioning through advertising, logo/packaging and in-store.Slide1

Great Brand Leaders should be looking at the culture as an opportunity to win in the market place.  No matter how good your promise is, if your company is not set up to deliver that promise, everything comes crashing down.  The brand story told within the company is even more important than what you might tell the market through your advertising.

Managing organizational culture is very challenging.  The Big Idea should provide an internal beacon for all the People in the organization to follow and deliver the brand promise.  As you move along the Brand Love Curve from Indifferent to Like It to Love It and on to Beloved status, you need to make sure the culture keeps pace with where the brand is.

While the Big Idea can provide the internal beacon, it might not be enough to capture all the behaviors.  Brand Values should come from the Big Idea, and act as guideposts to ensure that the behavior of everyone in the organization is set to deliver upon the Brand’s promise.  How do you want your people to show up?   What type of service do you want?  How much emphasis on innovation?   What type of people do you want to hire?  What behavior should be rewarded and what behaviors are offside.  Having the right Brand Values will help you answer these questions. The Brand Values become an extension of what the Brand Leader wants the brand to stand for.


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A great example of Brand Values is the Virgin Group of Companies defines what each value is, but also what it shouldn’t be.  I love that Fun means enjoyment but not incompetent and Value means simple but not cheap.

Having values is one thing, but the other component of Culture is the right people leadership.  Use the values to help people deliver upon the right behaviors, skills and experiences.  Leaders must embody the Brand’s DNA and live by the values.  Employees will be watching the Leaders to ensure they are living up to the words on the wall. Leaders need to believe that by investing in their people, the business results will come.  Better people produce better work and that drives better results. Talent management means hiring the right people and providing the right training.   Too many companies are skimping on training and development, which is equivalent to cutting back on your Research and Development department.  

Every communication to employees, whether in a speech or memo, should touch upon the Brand Values, by highlighting great examples of when employees have delivered upon a Brand Value.  Leverage values, with inspirational touch points and processes to inspire and challenge them on achieving greatness.  The culture will only change when everyone makes the decision to make the change.  

Aligning brand with culture is essential for the long-term success of the brand. Brand Leaders should look to the overall Culture as an Asset to make your Brand Experience more powerful.  

 

Telling the Brand’s Story Externally:

 

Use the Big Idea connect with consumers of the Brand

Once you have your Brand’s Big Idea, it should inspire you to seek out a Creative Idea, from which everything should come from.  The best brands use a Master Brand anthemic spot to help tell the overall story of the Brand.  But even more so, the Creative Idea should help with any specific product spots around the Innovation you’re bringing to the market.

Taking that a step further, you can use it to begin crafting your media plan, by launching with the Anthemic Spot, and layering in your specific product messages.  As you look to continue to stay connected with your consumer, you should keep coming back to regular intervals of the Anthem spot.  Too many brands, who are failing, try to do both at the same time. They try to create a lofty “Brand Spot” with their agency and just as they start to like it, they ask “can we jam in some news about our new faster widget” message in the middle, or maybe even do a 5 second tag with it.   Slide1

As you look at the Creative Advertising you want to ensure you take the Big Idea into how the Advertising delivers the rand messaging. The best ads attract ATTENTION, tell the BRAND story, COMMUNICATE the main benefit of the brand and STICK over time.  Leveraging the BIG IDEA and matching up a CREATIVE IDEA, you should make sure it’s the CREATIVE IDEA that does the hard work to a) Earn the consumers’ ATTENTION  b) Draw and hold attention on the BRAND c) tells the brand story in a way that COMMUNICATES the benefit and s)  STICKS with the consumer and builds consistency of  brand experience over time.  It’s the ABC’s of Good Advertising.

Slide1Once you align everything to the Brand’s BIG IDEA, you’ll create a strong bond with your consumers.  That bond becomes a source of power for your brand, whether that power is with the very consumers who love your brand, versus retailers, suppliers, competitors, influencers, employees or even versus the media.  

Once you’re able to generate power for your brand, you can then turn that into profit, whether driving price, cost control, market share or increasing the market size.

 Use your Brand’s Big Idea to Align internal and external dimensions of your Brand

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Do you want to be an amazing Brand Leader? We can help you.

Read more on how to utilize our Brand Leadership Learning Center where you will receive training in all aspects of marketing whether that’s strategic thinking, brand plans, creative briefs, brand positioning, analytical skills or how to judge advertising. We can customize a program that is right for you or your team. We can work in person, over the phone or through Skype. Ask us how we can help you.

 

*first exposed to the Big Idea and DNA concept at Level5 

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8 Simple Ways that Brand Leaders can impact Profits

The ugly truth is that too many marketers chose marketing as a career in business school because they hated accounting and finance. They were drawn to the strategy or creativity of marketing, hoping that someone else would do the accounting.  But in reality, from the CEO’s point of view, the only reason marketers exist is to drive growth and profit for an organization, with a focus on ROI (return on investment) for all those creative marketing programs.  

The more love you can create for your brand, the more power and profits you can generate. At Beloved Brands, it is our belief that marketers need to create more love for their brand, but not just for loves sake, but for the sake of profit.  Love = Connection + Power + Profit. That bond between your brand and your consumer becomes a source of power for your brand, whether that power is with the very consumers who love your brand, versus retailers, suppliers, competitors, influencers, employees or even versus the media. Once you’re able to generate power for your brand, you can then turn that into profit, whether driving price, cost control, market share or increasing the market size. 

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Driving Profit

While good marketers can run brands and marketing programs.  Great marketers can drive their brands P&L and deliver growth and profit for their brands.  Here are  eight ways the Brand Leader can drive profits:

  1. Pricing
  2. Trading the consumer up or down
  3. Product Costs
  4. Marketing Costs
  5. Stealing other users
  6. Getting current users to use more
  7. Enter new categories
  8. Create new Uses for your brand 

 

1.  Pricing

While many marketers think of price as a defensive reaction, most times to counter inflation or something happening in the trade channels, marketers should refocus and start using price as a weapon to drive Brand Value. Beloved Brands seem more capable at driving profits through pricing, but they also are careful to ensure the premium does not become excessive to create backlash.

  • Price Increase: You can do a price increase if the market or brand allows you. It likely has to be based on passing along cost increases. Factors that help are whether you are a healthy brand or it’s a healthy market as well as the power of your brand vs. competition and channel.
  • Price Decrease: Used when fighting off competitor, if you need to react to a sluggish economy or channel pressure. Another reason to decrease price is if you have a competitive advantage around cost, whether that’s manufacturing, materials or distribution.

There are watch outs for price changes. It’s difficult to execute especially if it has to go through retailers. You need to understand power relationships–how powerful are the retailers. Many times, price changes are scrutinized so badly by retailers that you must have proof of why you are doing it. It’s likely your Competitors will over-react. So your assumptions you used to go with the price increase will change right after. And finally, it’s not easy to change back.

2.  Trading the Consumer Up or Down

Aside from price increases, another strategy would to create a range of products that allows you to reach up or down to a new set of consumers.  You need to ensure that you are doing this for the right reason or it could backfire on you.  

  • Trading Up: If you have a range of products, sometimes it can be beneficial to get consumers to trade up. Can you carve out a meaningful difference to create a second tier that goes beyond your current brand? Do your brand image/ratings allow it?
  • Trading DownRisky, but you see un-served market, with minimal damage to image/reputation of the brand. In a tough economy, it might be better to create a value set of products rather than lower the price on your main products.

There are a few watch outs around trying to trade up or down: Premium skus can feel orphaned at retail world—on the shelf or missing ads or displays. Managing multiple price levels can be difficult—what to support, price differences etc. For all the effort you go to, make sure your margins stay consistently strong through the trading up or down. Be careful that you don’t lose focus on your core business. You can’t be all things to everyone. The final concern is what it does your Brand’s image, especially risky when trading downward.

3.  Product Costs

Managing cost as a weapon to enhance the Brand’s Value. It can be either your cost of goods or the marketing costs.  As marketers, we sometimes think cost is someone else’s job.  But it’s an effective weapon that marketers should be utilizing.  

  • Cost of Goods Decreases: You are able to use the power of your brand to drive power over your suppliers; you find cheaper potential raw materials, process improvement or find off-shore manufacturing.
  • Cost of Goods Increases: Make sure that you manage the COGs as they increase. Watch out for suppliers trying to pass along costs. But realize that with new technology, investing in brand’s improved image, going after premium markets, offering new benefit or a format change, that cost of good increases could be a reality.

The watch outs with managing costs: with cuts, make sure the product change is not significantly noticeable. You should understand any potential impact in the eyes of your consumer on your brand’s performance and image. Can the P&L cover these costs, either increased sales or efficiency elsewhere? Managing your margin % is crucial to the long-term success of your brand.

4. Marketing Costs

As marketers sometimes we get protective of the amount, hoping to have as much money as we can to carry out the activities on our priority lists.  But we should be looking at marketing costs from the view point of the CEO, with a focus on making sure every program drives profit.  

  • Marketing Cost Decrease: To counter changes in the P&L (price, volume or cost), it’s very tempting to look to short-term P&L management or look at changes in go-to-market model. Where a brand stands on the product life cycle or how loved the brand is can really impact the selling costs. Even though we think that Beloved Brands have endless spending, they actually likely have a lower investment to sales ratio.
  • Marketing Cost Increase: When you’re in Investment mode, defensive position trying to hold share against an aggressive competitor or when you see a proven payback in higher sales–with corresponding margins.

Always be in an ROI mindset: Manage your marketing costs as though every DOLLAR has to efficiently drive sales. Realize that short-term cuts can carry longer term impact. Competitive reaction can influence the impact of investment stance–like a price change, your competitor might over-react to your increases in spending.

5. Stealing other Users

Externally, the Share and Volume game are traditional tools for brand. Either stealing other users or getting current users to use more.

  • Offensive Share Gains: Use it when you have a significant Competitive Advantage or you see untapped needs in the market. Or opportunistic, use first mover advantage on new technology.
  • Defensive Share Stance: Hold the fort until you can catch up on technology, maintain profitability, loyal base of followers needs protecting.

Be careful when trying to gain share. A Beloved Brand has a drawing power where it does gain share without having to use attack modes. Attacking competitors can be difficult. It could just become a spend escalation with both brands just going at it. After a share war that’s not based on a substantive reasoning (eg. technology change), there might end up with no winners, just losers. Many times, the channel will try to play one competitor against another for their own gain. Watch out what consumers you target in a competitive battle: some may just come in because of the lower price and go back to their usual brand.

6. Getting Users to Use More

Going after frequency is a different strategy.  

  • Share of Requirements:  In many categories, even loyal consumers will work within a competitive set of favourite brands. A good strategy is to provide a reason (claim, experience, emotion) for loyal consumers to stay with your brand.  
  • Get Current Users to Use More: When there is an opportunity to turn loyal users into creating a potential routine. Changing behaviours is more difficult than enticing trial. It’s a good strategy to use, when your there’s real benefit to your consumer using more. It’s hard to just get them to use more without a real reason.

There has to be a real benefit connected to using more or it might look hollow/shallow. Driving routines is a challenge. Even with “lifesaving” medicines, the biggest issue is compliance. Find something in their current life to help either ground it or latch onto. When I worked on Listerine, people only used mouthwash 20-30 times a year compared to 700+ brushing occasions. So we focused on connecting rinsing with Listerine to the twice daily brushing routine.

7. Enter New Categories  

When there is an untapped or under-served need. There could be a significant changing demographic that impacts your base. Or you are able to translate/transfer your reputation to a new user group. There should be something within your product/brand that helps fuel the brand post trial. Trial without repeat, means you’ll get the spike but then bust. Substantial investment required. Don’t let it distract from protecting the base loyal users.

8. Create New Uses

Format Line Extensions that take your experience or name elsewhere. Able to leverage same benefit in convenient “on the go” offering. Make sure current brand is in order before you divert attention, funding and focus on expansion area. Investment needed, could divert from spend on base business. Be careful because the legendary stories (Arm and Hammer) don’t come along as much as we hope.

Beloved Brands drive strong sales growth, which helps the P&L work harder and more efficiently.

With all the love and power the Beloved Brand has generated for itself, now is the time to translate that into growth, profit and value. The Beloved Brand has an Inelastic Price. The loyal brand fans pay a 20-30% price premium and the weakened channels cave to give deeper margins. We will see how inelastic Apple’s price points are with the new iPad Mini. Consumers are willing to trade up to the best model. The more engaged employees begin to generate an even better brand experience. For instance at Starbucks, employees know the names of their most loyal of customers. Blind taste tests show consumers prefer the cheaper McDonald’s coffee but still pay 4x as much for a Starbucks. So is it still coffee you’re buying?

A well-run Beloved Brand can use their efficiency to lower their cost structure. Not only can they use their growth to drive economies of scale, but suppliers will cut their cost just to be on the roster of a Beloved Brand. They will benefit from the free media through earned, social and search media. They may even find government offer subsidies to be in the community or partners willing to lower their costs to be part of the brand. For instance, a real estate owner would likely give lower costs and better locations to McDonald’s than an indifferent brand. Apple get a billion dollars worth of free media, with launches covered on CNN for 2 weeks prior the launch and carried live like it’s a news event.

Beloved Brands have momentum they can turn into share gains. Crowds draw crowds which spreads the base of the loyal consumers. Putting the Disney name on a movie generates a crowd at the door on day 1. Competitors can’t compete–lower margins means less investment back into the brand. It’s hard for them to fight the Beloved Brand on the emotional basis leaving them to a niche that’s currently unfulfilled. Walk past an Apple store 15 minutes before it’s open and you’ll see a crowd waiting to get in–even when there are no new products.

Beloved Brands can enter into new categories knowing their loyal consumers will follow because they buy into the Idea of the Brand. The idea is no longer tied to the product or service but rather how it makes you feel about yourself. Nike is all about winning, whether that’s in running shoes, athletic gear or even golf equipment

profit chart

Here are lessons learned for driving more profits for your brand.

  1. Higher volume helps you exert pressure on costs. That could be supply costs, operations costs, and distribution over even media costs.
  2. Get More for Less From the Trade. You can begin exerting power over the sales channels to your advantage–trimming variable trade costs with retailers while demanding more display, prime real estate, coop advertising and more control over pricing. ROI on trade programs.
  3. Smarter More Efficient Management: manage your inventories, meet customer expectations, control pricing and drive cheaper costs.
  4. Growth means you start outgrowing any fixed costs. This includes start-up costs, sales force, product plants or R&D costs.
  5. Lower Cost of Capital: More certainty means lower risk and you can re-invest, knowing the ROI will be quicker and stronger.

 

 Love = Power + Profit

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How loved is your brand?

We believe a brand’s source of power is the emotional feelings it generates. With that power comes added profitability.

In the consumer’s mind, brands sit on a Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand for Life. At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans. It’s this connection that helps drive power for your brand: power versus competitors, versus customers, versus suppliers and even versus the same consumers you’re connected with. The farther along the curve, the more power for the brand. It’s important that you understand where your brand sits on the Love Curve and begin figuring out how to move it along towards becoming a Beloved Brand. With the power of connection, the brand can leverage that power into increased growth and profits. To read more, follow this presentation.

 

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