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Tag Archive: Brand Value

What will Happen when Teenagers Leave Facebook?

tumblr_lgfj0tfVVo1qdetk0o1_400I have two teenagers at home, so I can safely call myself the world’s foremost EXPERT ON TEENAGERS!!!   Actually, as a parent of teenagers, I have absolutely no clue what’s going on.  But that’s a whole different blog.  What I have noticed in 2013 is that my two teenagers aren’t using Facebook at all.  A sample of two:  my 16-year-old has only 5 posts this year and my 15-year-old has 7 posts.  I know 40 year-olds that have that many posts in a day, posting anything from photos of cute cats rolling on the grass to a hilarious video of an old lady dancing to 28 photos of their 3-year-old at the zoo pointing to a Lion or commenting on “what’s a color without the letter E in it”.  Unknown-1

And we can’t figure out for the life of me why teenagers would want to leave this cool and fun party?  Actually, the answer is pretty easy: “YOU GUYS ARE SUCH LOSERS”.  I hear that one every day.  Keep in mind, we drop them off where we can’t be seen.  This is the same thing that goes for social media.  Don’t embarrass me!

Facebook was originally developed by College Students for College students and then quickly followed by High School students.  It became the place to be around 2007.  Then 20 somethings got on, then Moms then snuck on in 2010 and now….Grandmas are on there.  The biggest growing demographic is 55+.  And they are commenting on photos.  OMG!!!  WTF!!!  IKR!!!  GTFO!!!  We had to tell my mom not to comment on my daughter’s Facebook page anymore for fear she would be unfriended and blocked.   We are already blocked so we know what that feels like.   It stings.

This is pure comedy, an example of the horror teens are facing.  It’s a mother trying to defend her son, on his girlfriend’s Facebook page.  My guess is they are no longer dating. 

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Are we starting to get a picture of why the teens are leaving Facebook?  Just keep repeating this and it will help you understand teens:  “YOU GUYS ARE SUCH LOSERS”.  And then maybe go slam your door.  

Let’s Look at the Facts
  • The active number of Facebook users in the US is down 7.4% in 2013.  The average age continues to climb every year, with 65% of Facebook users are now over 35 years old.  The biggest complaint people have is that it’s boring.  As my friend says “how come people will watch videos of cats falling off a sidewalk on-line, but if we said that’s a TV show, no one would watch it”.  The answer is likely novelty.  
  • Moms have gone on Facebook in droves:  72% of Moms are now on Facebook.  Half of them said they are really just going on to keep tabs on their kids.  And 74% of Moms say they check their kids Facebook several times a week.  Slide1
  • On the flip side, one in three teens are embarrassed by their parents’ Facebook comments.  The problem is that your teenagers know you’re spying.  And they don’t appreciate it.  Over 30% of teens say they have unfriended their parents.  Teens complain they don’t get enough privacy on Facebook.  
  • Teens continue to turn to smartphones as their primary source and as a result prefer App based programs such as SnapChat, Twitter, KIK Messenger, Ask FM and Instagram. Adults can’t even find these and when they do, they can’t even work them. And when you figure it out, teens will just move on to something else.
  • Recent study found 33% of teens called Facebook the most important social network, closely followed by Twitter with 30%.  Twitter is significantly gaining.  Just 6 months ago, the scores were 42% to 27%.  
So now what happens? 

A few things come to mind.  

  • Kids want something that is uniquely their own.  It reminds me of what happened to the Gap Clothing store.  Back in the 1990s, it was the cool brand for teenagers.  Then Baby Gap and Maternity Gap meant teens would now be wearing the same clothes as their cute little nephew or their hugely pregnant Aunt.  Total Horror.  So the teens stopped going and then the pregnant aunt didn’t want to dress like someone uncool.  So sales tumbled.  This could be a metaphor for Facebook.  Once you are everything to everyone, you end up nothing and to no one.   
  • One less chance for Control Freak Moms:  If a lot of moms are on Facebook only to spy on their kids, maybe they’ll now move on and stop using Facebook so much.   How many pictures of Cats can we really “Like” while waiting for your little precious to post something you can tell her is totally inappropriate?   And other moms are likely only on Facebook because it’s the cool thing that teens do.  Once they find out it’s no longer cool, we could have our new version of the tipping point that Gap went through.
  • Advertisers are confused by Social Media yet again.  Just as they were finally able to start putting numbers to social media, the whole world has changed yet again.  Advertisers want to know reliable sources for where to invest their advertising dollars.  They need payback and if the audience keeps moving, then it’s hard for them to have a steady reliable place to invest in.
The same problem continues:  How do we Monetize Social Media Platforms?

Most social media platforms follow the same pattern.  They launch with a unique way of communicating that is a dramatic improvement over prior methods.  There is minimal advertising because they are focused more on gaining a large following that might take a year or two.  Plus, they are so unproven, making it very hard to get advertisers to buy into it.  They end up with a large audience but no proven method of making money from that large audience.  And then they take it public with a promise that “we’ll now use advertising to our huge audience to drive future revenues”.  teens-on-cell-phonesThe claim is that the value of Social Media platforms should not be based on current revenue streams but on future revenue sources.  They say “trust us, this will be huge”.  Right?  You’ve heard this story before.  But as they said in Jerry McGuire:  “Show me the money!!!”  

We have to be able to see how a social media platform can make money.   With some of these sites, I’m not seeing it yet.  But now, as Facebook is still trying to figure out how to monetize their huge user base, that user base is starting to leave.  Down 7.4% is pretty significant for something that is free.  The new mediums they are leaving for look like a total fad.  How do these new vehicles make money?  There are no ads on Instagram or Snap Chat.  Yes, Facebook now owns Instagram for a tidy $1 Billion.  But how do you now make money on it?  By the time they figure out how to monetize, the teenagers are likely already moving on to what’s next.  And the cycle continues.

Facebook had quickly become the wonder-drug of Social Media, the one powerhouse that everyone was engaged in and Advertisers were starting to understand.  Will there be a new version of the mega social media platform or will the future just be fragmented into unique platforms for unique groups?  Does that make it harder or easier on Advertisers?  Yes, there will be better segmentation but confusion over how to go about reaching.  Too many executional options for too many media choices.  

Is Facebook at a Tipping Point?  Will they just become the social media site for the over 30?

What’s Your Next Move Facebook?

 

Follow me on Twitter at @grayrobertson1

 

Here’s a presentation that can help Brand Leaders to get better Media Plans.  

Other Stories You Might Like
  1. How to Write a Creative Brief.  The creative brief really comes out of two sources, the brand positioning statement and the advertising strategy that should come from the brand plan.  To read how to write a Creative Brief, click on this hyperlink:  How to Write a Creative Brief
  2. How to Write a Brand Plan:  The positioning statement helps frame what the brand is all about.  However, the brand plan starts to make choices on how you’re going to make the most of that promise.  Follow this hyperlink to read more on writing a Brand Plan:  How to Write a Brand Plan
  3. Turning Brand Love into Power and Profits:  The positioning statement sets up the promise that kick starts the connection between the brand and consumer.  There are four other factors that connect:  brand strategy, communication, innovation and experience.   The connectivity is a source of power that can be leveraged into deeper profitability.  To read more click on the hyper link:  Love = Power = Profits

 

Brand LeadershipI run the Brand Leader Learning Center,  with programs on a variety of topics that are all designed to make better Brand Leaders.  To read more on how the Learning Center can help you as a Brand Leader click here:   Brand Leadership Learning Center

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To reach out directly, email me at graham.robertson@beloved-brands.com

About Graham Robertson: The reason why I started Beloved Brands Inc. is to help brands realize their full potential value by generating more love for the brand.   I only do two things:  1) Make Brands Better or 2) Make Brand Leaders Better.  I have a reputation as someone who can find growth where others can’t, whether that’s on a turnaround, re-positioning, new launch or a sustaining high growth.  And I love to make Brand Leaders better by sharing my knowledge.  Im a marketer at heart, who loves everything about brands.  My background includes 20 years of CPG marketing at companies such as Johnson and Johnson, Pfizer Consumer, General Mills and Coke.  My promise to you is that I will get your brand and your team in a better position for future growth. Add me on LinkedIn at http://www.linkedin.com/in/grahamrobertson1 so we can stay connected.

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How to Drive Profits through Your Brand

The more loved the brand, the more powerful the brand and in turn the higher growth and profit it can generate.

Brand LeadershipA beloved brand can use the connection with their consumers as a source of power. The tighter the connection to consumers, the more loved the brand. As a brand becomes more loved, it becomes more powerful, and is able to wield that power onto all aspects of the market. A Beloved Brand can entice consumers to keep coming back, it can fight off competitors to win with key targets, it can generate earned media easier, it can challenge suppliers to come back with lower costs and it leverage its positional power to gain preferential treatment with real estate owners, government or tour operators. Even employees would rather work for a powerful beloved brand than an indifferent brand.

Brands move along a “LOVE CURVE” going from Indifferent to Like It to Love It, and then they’ll make it their Brand For Life. The farther along the curve, the more connected to the brand.

The “Brand Love Curve” can be linked to the Brand Funnel which becomes the underlying scoreboard. You can use the funnel to map out the buying process for the consumer, identifying both strategy and tactics to move them along the funnel towards being more loved. Used properly, the Power of the Brand can help drive the P&L with four important levers: driving increased price, lowering costs, increasing share, creating new markets. As a result, a powerful connected brand is much more efficient. And that efficiency can leverage the P&L to invest back in the brand’s connectivity and drive Profit and over the long run create value for the Brand.

As a Brand Leader looks to how to drive their Brand through the P&L, here are the four ways the Brand Leader can drive profits:

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1. Using price as a weapon to drive Brand Value. It can be a price change, up or down, or it could be trying to get consumers to trade up or down.

  • 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.

  • Trading Up: If you have In 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? Does your brand image/ratings allow it?
  • Trading Down: Risky, but you see unserved 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.

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. 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. Can’t be all things to everyone. The final concern is what does it do your Brand’s image, especially risky when trading downward.

2. Managing cost as a weapon to enhance the Brand’s Value. It can be either your cost of goods or the potential selling costs.

  • 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.

  • Selling 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.
  • Selling 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.

3. Externally, the Share and volume game are traditional tools for brand. Either stealing other users or get 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.

  • 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 “life saving” 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.

4. Increase the Size of the Market by Finding New Users or Creating New Uses.

  • Find New Users: 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.
  • 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.

  1. Higher volume helps you exert pressure on costs. That could be supply costs, operations costs, 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.

You should be looking at your business through the lens of your brand. Yes, the brand promise sets up how the external community views your brand whether that’s consumers, customers or key influencers. It’s the consistency in delivering the promise that connects consumers with your brand, both emotionally and rationally, letting it become a part of their lives. But equally so, brand becomes an internal beacon to help guide behaviour, decisions, action, structure and the formation of a culture. You should drive your growth and profitability through your brand, with a focus on driving share, enhancing price while managing costs and finding new markets.

Most marketers will tell you that branding is about positioning. I think positioning is a means to driving growth and making money.

 

To view a copy of How to drive Profits into your Brand, click below:

 

I run the Brand Leadership Learning Center with programs on this very subject as well as a variety of others that are all designed to make better Brand Leaders.  Click on any of the topics below:

To join the Brand Leadership Learning Center Facebook page, click below:

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If you or team has any interest in a training program, please contact me at graham.robertson@beloved-brands.com

About Graham Robertson: I’m a marketer at heart, who loves everything about brands.  My background includes 20 years of CPG marketing at companies such as Johnson and Johnson, Pfizer Consumer, General Mills and Coke. The reason why I started Beloved Brands Inc. is to help brands realize their full potential value by generating more love for the brand.   I only do two things:  1) Make Brands Better or 2) Make Brand Leaders Better.  I have a reputation as someone who can find growth where others can’t, whether that’s on a turnaround, re-positioning, new launch or a sustaining high growth.  And I love to make Brand Leaders better by sharing my knowledge. My promise to you is that I will get your brand and your team in a better position for future growth.  To read more about Beloved Brands Inc., visit http://beloved-brands.com/inc/   or visit my Slideshare site at http://www.slideshare.net/GrahamRobertson/presentations where you can find numerous presentations on How to be a Great Brand Leader.  Feel free to add me on Linked In at http://www.linkedin.com/in/grahamrobertson1  or on follow me on Twitter at @GrayRobertson1

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Linsanity becomes an overnight Beloved Brand

Jeremy Lin has become an overnight sensation.  Here’s a guy who didn’t get any scholarships, went undrafted and has been cut by two NBA teams already.  His rookie NBA season, he averaged 2.6 points per game and barely got any playing time.  Just two months ago, he was cut by Golden State, one of the worst teams in the league.    He went to Harvard of all places and even in the Ivy League, he only averaged 12 points a game.    This guy has literally come from out of no where.   Even he knows that.  He was sleeping on his brothers couch just a month ago.  On top of all this, Jeremy Lin is the first American born Chinese player to break through in the NBA, which strengthens his fan based around the world.  In just seventeen days, he’s gone from a nobody to an instant global sensation, who might one day command a brand value of over $100 Million.

As I’ve laid out the Brand Love Curve, people ask me “Can a brand go straight to LOVE IT?”   My answer is “NO”, but some brands can go along the curve at warped-speed.   A few examples: the first time I had a White Chocolate Magnum Bar in the 1990s, I made it all the way to the Love It stage on the second bite.  When Kevin Spacey as “Keyser Söze” started limping away at the end of The Usual Suspects, I instantly knew it would be my one of my brands for life.  Lin has gone to Beloved Status that fast.

Jeremy Lin’s first big game was only 17 nights ago and yet he’s all over the news.   Eighteen days ago, no one really knew him.   In fact his own facebook status in early January was “Everytime i try to get into Madison Square Garden, the security guards ask me if im a trainer LOL”.   His story has grown in legendary fashion, winning 7 games in a row, hitting last second shots, beating Kobe Bryant.   All this is the basketball side.

As a brand, Jeremy Lin has gone along the Brand Love Curve at warp-speed, potentially even faster than Justin Bieber.   But for Lin, it’s been the Perfect Storm of Events.

  1. He’s just an Average Joe: He went undrafted, cut by two teams, no job, sleeping on his brothers couch. Great Story. It all adds up–he’s one of us.  We love those stories, where the guy just shows up to try out and makes the team.  Before the Lakers game, Kobe was laughing about the prospect of guarding him.   After he scored 38 points, Kobe was marvelling at his ability.  They make movies wtih scripts like that.
  2. He’s another Tebow:  He thanks Jesus when he win.   He’s nice and humble.  He’s also a highly flawed player who like Tebow, wins in the end.  And like Tebow, he wins in dramatic fashion.  We just rode the Tebow Story–and we’re clearly not done with it.   Most of us want more Tebow.   We want heroes and we want them to be good guys.    http://beloved-brands.com/2012/01/15/527/ 
  3. New York is the Centre of the Universe:  If this was Oklahoma or Portland, it might not be so crazy, but it’s New York, the home to the most powerful media and advertising in the world.   He’s already made the cover of Time Magazine and now back-to-back covers on Sports Illustrated.  Ratings for Knick games are through the roof–the highest since Michael Jordan.  His #17 jersey is selling like crazy.  Social Media has gone crazy behind Lin.  Did the New York Media help add fuel to the fire?  Likely.
  4. It’s a Global Story:  Lin, while born in America is the first American born Chinese player in the NBA.   His games are being watched Live in China.   And he’s an instant national hero in a country of One Billion people.  And as we know, the economy in China is strong–giving them the real purchasing power to get behind Lin.

As with any Beloved Brand, the more loved the brand the more valuable that brand will be.    A month ago Lin was making league minimum.  Now, he could be worth somewhere between $15 Million and $150 Million, depending on how long this status can last for him.   A few numbers that help tell the story.

  • Since Feb. 4th MSG’s stock price has increased 6%, adding $139 million to the company’s market value. During the same period the S&P 500 has gone up less than 1%.  With increased TV ratings, higher ticket prices and the #1 selling jersey, with continued success, the Knicks have to re-sign him.  That means, Lin’s next contract could see a salary of $10 Million per year.
  • Yoa Ming, the only other notable Chinese player in the NBA, made up $80 million in endorsement deals in China.  China has gotten behind Lin in a dramatic fashion.  With a soaring economy and One Billion consumers, that could be a huge payday for Lin.   Especially for American brands wanting to break through in China.   With all this hype and Chinese pride, Lin could generate $80-100 Million in China.
  • There are already rumours going on that he has signed on with Nike, that he will be the new face of NBA’13 and his agent is quoted as saying that he has already turned down Millions.  Even in America, Lin could easily turn this into another $25 Million in US Endorsements.  

If things go right, and assuming Lin continues to play reasonably well, add it all up and Jeremy Lin could easily turn his Beloved Brand Status into $100-150 Million per year.

About Graham Robertson:  I’m a marketer at heart, who loves everything about brands. I love great TV ads, I love going into grocery stores on holidays and I love seeing marketers do things I wish I came up with. I’m always eager to talk with marketers about what they want to do.   My background includes CPG marketing at companies such as Johnson and Johnson, Pfizer Consumer, General Mills and Coke.  I’ve done executive training of marketing executives and managers as well as taught marketing at Major Universities including York University, Queen’s University and Cornell University.  If you have interest for your team, email me and we can customize a program to your needs.  For Powerpoint versions of Beloved Brands as well as other team learning presentations, visit Beloved Brands Learning Sessions

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