Can Uber survive their own disasters?

IMG_0713.0.0We’d all likely agree that Uber thrust itself into the marketplace with one of the most recent disruptive technologies. It was such a brilliant idea, where you can order a car, track exactly where it is and when it will pick you up and then pay for it via your smart phone. But will they even survive?  This week, Apple announced that they had purchased Didi for $1 Billion, Uber’s biggest rival in China. While I’m a huge Apple fan, they never really invent stuff, they look to enter categories with easy entry and where consumers are being under-served. Maybe this is just a sign that Apple has too much cash or they want to replace lost sales in China.

While Uber might have launched a great App, they sure are bad at managing their brand. Here are mistakes they have made the past year.

Brands have four choices: better, different, cheaper or not around for long

When Uber first came out, I thought “wow, that’s so much better than a Taxi cab”.  Yet the fixation on price has treated ride-sharing like a commodity. In Uber’s mind, they want to use the efficiency of the App to drive out the weak. Just like Twitter, they are yet to figure out the way to become profitable. However, what is their long-term vision for becoming a profitable brand?

Here’s a quote from an Uber spokesperson: “Shock, horror, Uber makes a loss. This is hardly news and old news at that. It’s the case of business 101: you raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors.”  That’s more like Business Arrogance 101, sounding like Twitter, who after 10 years has yet to convince us that it will be around for 15 or 20 years.

The risk here for Uber is you treat yourself like a commodity, yes, you will drive every other competitor out of the market. But after you do, you will be a commodity.

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Uber has yet to define their brand, and exactly what their core strength will be

There are four options for what CORE STRENGTH your brand can win on: product, promise, experience or price. Many brand leaders have their marketing strategy wrong, when it comes to aligning everything behind the right strength. 

  • Product: your main strategy should focus on being better. You have to invest in Innovation to stays ahead of competitors, remaining the superior choice in the category.
  • Promise: your strategy should focus on being different. To tell that story, you need to invest in emotional brand communication. You want to connect consumers on a deep emotional level with the concept.
  • Experience: your strategy and organization should focus on linking culture very closely to your brand. After all, your people are your product. As you go to market, invest in influencer and social media that can help support and spread the word of your experience.
  • Price: focus on efficiency and drive low-cost into the products you sell and high turns and high volume. You have to be better at the fundamentals around production and sourcing.
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I keep trying to figure out where Uber should play. At first, I thought what an amazing EXPERIENCE. I love ordering, love watching the little car on my phone and love getting out of the car. Just like Netflix, the Uber brand could have been all about the brand experience. However, while Netflix has created their own content (House of Cards) while Uber has had a hard time recruiting higher quality drivers, hurting the experience. In the last month, I’ve had two Uber drivers get lost and one car in disastrous smelly condition, really questioning the whole brand experience.  The Airbnb brand would be a role model of a brand that has taken the experience to new levels. But, that leaves me to say Uber is a price brand, similar to how we’d peg Expedia. I can use a car-sharing app to get Uber, Lyft, Juno, or a taxi. I don’t see any significant difference between any of the services, each of which arrives quickly, charges similar fares, and offers clean cars and knowledgeable drivers. Sounds like Uber is fast becoming a commodity, focused on price. Maybe they will end up being the Expedia, who competes as a price-commodity with about 15 other hotel/travel brands.

Don’t go to war with City Hall

Of course, all these disruptive technologies are going to upset someone. Netflix had to work directly with governments around the world to gain entry. Netflix stayed patient and tried to work behind the scenes market by market. Still a work in progress. Uber took on the completely different tact, continuing to directly challenge City Hall. In Toronto recently, Uber took out a very aggressive Petition Campaign, pitting voters against City Hall. In the end, the Toronto City counsel voted to keep Uber, but with 3 major stipulations: 1) Uber had to charge the same price as Taxis. 2) Uber had to pay a licensing fee 3) Uber had to do a better job in regulating their drivers. After those 3 stipulations, that leaves Uber without any competitive advantage.  The taxis have apps, and now with everything equal, the Taxi companies have a long list of experienced drivers, a local brand name and service values. Uber might have won the approval of City Hall, but they just lost big time.

While Toronto is just one city, Uber is going head to head with City Hall around the world. Even the wins are turning out to be losses. While all my Facebook friends were happy with the win for Uber, I was sitting there with my mouth open thinking “what a destruction of the Uber brand”.

Uber has not created Service Values

Uber’s President recently re-designed his own logo. The old logo seemed good enough. What he should have been doing is working hard to create an Uber culture, backed by service values that the company could have built a superior brand experience. With Experience Brands, your strategy and organization should focus on linking culture very closely to your brand. After all, your people are your product. As you go to market, invest in influencer and social media that can help support and spread the word  of your experience. Wells Fargo bank offers comfortable banking, Ritz-Carlton uses impeccable customer service to really separate itself, Emirates Airlines who take service to new heights (and prices accordingly) and Starbucks creates an escape with indie-music, cool servers, leather chairs and a touch of Europe. Each of these brands operate in high commodity type businesses, yet they each use precision based service guided by tight service values that line up to a brand purpose.

Uber is forgetting that a brand is a reputation

Every week, there seems to be a bad story about Uber. When that Uber driver went on a shooting rampage last month, I must have heard “Uber driver” 50x a day. Uber, Uber, Uber. Every time I hear Uber executives quoted, they seem mad at the entire Universe.

When a woman tweeted Uber, claiming that she had been choked by her driver. According to an email leaked to Gawker, Kalanick immediately emailed his PR team, blaming the media for suggesting that Uber is “somehow liable for these incidents that aren’t even real in the first place,” and then instructing them to “make sure these writers don’t come away thinking we are responsible even when these things do go bad.”

You are supposed to manage these stories, not get just get angry at them.

The race to convergence of the Automobile market

It’s still hard to imagine what driving will be like in the year 2030. I have no clue, so it’s safe to say my only input will be to say “Wow, this is really cool”.  When markets converge, there are many sub-categories working really hard in the hopes that they will be the ultimate winner. Here are the various sub-categories that are converging:

  • Electric Automobiles. (Tesla)
  • Self-Driving Automobile Software. (Apple or Google or Microsoft)
  • Self-Driving Automobiles. (Mercedes, BMW, Audi, Toyota, Honda)
  • Efficient production of mass produced automobiles. (Toyota, Honda)
  • Design and Styling of the inside of automobiles. (Mercedes, BMW)
  • Ride sharing Apps. (Who cares)

 

I have put in brackets who might win. This convergence could set up partnerships you could imagine, such as Apple and Tesla or Google and Toyota. A year ago, I would have thought that the ride-sharing Apps would be at the centre of the power structure of the market. BTW, the real winner of this convergence might be 15 years old and designing cool things in his garage. Unless Uber can stop treating this like a commodity, they will just end up the next Expedia where no one really cares what App you use.

Uber has no competitive advantage. They have a hyper focus on price, not the experience potential. They lack any service values that will establish a brand culture. And they have an arrogant attitude that will make many cheer on their demise. Maybe Apple really does know something. Or maybe they just had a spare billion sitting around doing nothing.

Uber is one more cool App, with bad management of the execution. I’m predicting Uber becomes the next Pet Rock that we will soon forget.

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

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Is the Bose brand considered high quality or low quality?

 

bose-logo-vectorAmong the masses, Bose is one of the most respected, trusted and beloved brands when it comes to audio speakers and headphones.  That’s what their core target market would say. But to serious Audiophiles, with a discerning ear, Bose is total crap, with inferior technology, shabby production standards and resulting poor value. This might be the equivalent about asking a Foodie what they think of Morton’s Steakhouse or Ruth’s Chris.

Bose has a great word of mouth reputation. I remember when I first heard of Bose, it was a guy at work, who seemed to know more than I did say definitively “Bose are the best speakers you can buy”. I immediately believed this to be true and have felt that way ever since. I proudly own Bose headphones, a Bose docking station and Bose speakers in my car. I am a highly satisfied Bose fan.

I wanted Bose Speakers for my TV, having drooled over the idea for years. So I went into a Bose store, listened to a few different options and they all sounded amazing. So I looked on the Bose box, and there was no mention of Watts at all or really anything. My first thought was “wow, Bose is just such a great brand, they don’t really need to get into those tiny details like watts”. But I wanted to compare brands just to ensure I was spending good money. So I went on-line and here’s the Bose specs: still nothing.

 

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That brings us to The Bose philosophy: Unlike other audio product manufacturers, Bose does not publish specifications relating to the measured electrical and objective acoustic performance of its products. This reluctance to publish information links back to the classic Amar Bose paper presented in 1968 “On the Design, Measurement and Evaluation of Loudspeakers”. In the paper, Bose rejects these measurements in favor of “more meaningful measurement and evaluation procedures”, and considers the human experience the best measure of performance.

For Bose, sound is an experience, not a statistic. Bose spends all their effort and dollars on perfecting the in-store sound demo so they can show off Bose’s great sound quality and let consumers be the judge of their sound.  And yet it’s arguably tough for the average ear to distinguish. Bose invests a lot of money into their own retail stores as well as the store-in-store concepts. That way, it can control the experience the consumer gets with its products–ensuring the consumers hear Bose at it’s best.

Bose has figured out how to make their brand work to their advantage–the proof is in the sound you hear in the store. There’s a certain magic that happens in store when listening to the Bose stereo system. Despite what Audiophiles say, consumer feedback from the masses is definitively in favour of Bose with very high scores. And in a most recent poll, Bose is the #3 trusted brand in Consumer Electronics, so they must be doing something right. It’s tough for consumers to separate Product from Brand, even a brand like Apple has had success in this confusion where consumers think Apple has “great products”. To the masses, Bose is a great brand and has great products.

Is Bose a beloved or hated brand? You be the judge.  

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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The 10 most abused words by Marketers

 

On a daily basis I hear Marketing buzz words bantered about and it becomes obvious people say them and don’t really even know what they mean. I think people use the sacred marketing words like relevant, equity or insights, because they figure no one will challenge them. Of course, everyone puts “strategic thinker” on their Linked In profile. The problem I see is that a generation of Brand Leaders have not been properly trained and it’s starting to show. For the past 20 years, companies have said “on the job” training is good enough. But now the lack of training is starting to show up. The mis-use of these words can be linked to the lack of understanding of the fundamentals of marketing.

Here are the 10 words mis-used and even abused by Marketers.

1. Relevant

When I was running the marketing department at J&J, I jokingly banned this word “relevant” because it was so abused. I found that when a marketer would say “we need to make sure it’s relevant”, the room would go silent. Then there’s a pause and someone would add their own brilliance “yeah, we have to be relevant”. The room went silent again. So then I would usually ask a simple question “so what do you mean relevant?” and sadly that question seemed to stump most of my marketers. Relevant has become the marketing equivalent of the word “nice”, because people say it so much now, they have no clue what they mean by it. My mom and my new iPhone speakers are both “nice”. Yes, of course, marketing should be relevant. But what exactly do YOU mean when YOU say the word relevant? When you answer the question, you likely just wrote down something better. So use that instead of just blindly saying “we need to be relevant”.

2. Awareness

Just like the word relevant, you’re just forcing me to ask, “so when we get awareness, what do we get then”. Once you spend money, you should be able to get awareness–it’s just a question of how much money you spend. Jeb Bush just spent $130 Million–everyone knew he was running. No one voted for him and his awareness did very little for him. In brand terms, we don’t make any money from awareness–we only begin to make money as we are able to move our consumer through the consideration-search-purchase stage.  So, let’s save the word “Awareness” for the lazy brains.

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3. Brand equity

The term was first coined in the 1980s, as part of the RJR Nabisco take-over when they couldn’t explain why they were willing to pay a higher price than the pure book value of the assets. The word has strayed since in two different directions–those like Brand Finance and Interbrand who still use it to correctly attribute it to the VALUE of the brand and those who mis-use the word when they attribute to the HEALTH of the brand. Where it gets abused is when it has become  a catch-all statement for the “unexplainable”. They’ll say “the final scene of the TV ad is really emotional and should really drive the equity of this brand”. We look at Brand Health and Brand Wealth separately and then use the model to predict future success of the brand. As Brand Leaders, it’s actually important to keep them separate so that the actions you take hit the right spot on keeping your brand healthy and wealthy. But Brand Equity is about the wealth side, linked to Value.

There are 8 ways to drive Brand Wealth: premium pricing, trading the consumer up or down, reducing both product costs and marketing costs, stealing other users or getting current users to use more, entering new categories and creating new uses for your brand. Those are not ambiguous at all.

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4. Target market

I’m in shock at how Marketers list out their target market on the creative brief. I once read a brief with a target that said “aged 18-65, new customers, current customers and even employees”. That pretty much covers everyone but prisoners and tourists. A well-defined target should be a combination of demographics (age, income level, male/female) and psychographics (attitude, beliefs and behaviors). I actually try to put an age demographic on every brief. Call me old-fashioned or just realistic. The media you buy, the talent you put in the ad, the stores you choose to sell to, or even the claims you make are likely going to have an age component, so you’re just kiddng yourself by saying “we are more about psychographics than demographics”. When it comes to age, I try to push for a maximum of a 5 year gap. This doesn’t mean you won’t sell to people outside of this target, but it does help give focus to you.

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5. Alienate

This word drives me bonkers and it seems to be growing or at least I keep hearing it. The best brands have focus, the worst don’t. The best marketing programs also have focus, and the worst don’t. If you want to be a great marketer, you must have focus–defined target, positioning, strategies and  execution. Stop being worried and cautious that you alienate older consumers or your current consumers, that you water down your marketing programs to a degree that we have no clue who you’re talking to or what you’re even saying. As long as you are staying consistent and true to the brand, no one should be alienated by what you have to say and who you say it to.

6. Benefits

There’s an old selling expression: “features tell and benefits sell”. But I’m seeing that Marketers have become so obsessed with shouting their message as loud as they can, most brand communication is wall-to-wall claims about how great you are. Brand Leaders should be organizing their Customer Value Proposition into rational and emotional benefits. What I recommend you do is list out the brand features and put yourself in the shoes of your consumer and ask “what do I get?” (for rational benefits) and “how does that make me feel?” (for the emotional benefits). Your brand’s communication should be a combination of the two.

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7. Brief

It’s called a brief, because it’s…BRIEF.  I saw a creative brief last year that was 8 pages long. And even that length, I couldn’t find one benefit or one consumer insight. Every brief should be one page maximum. I’ve done a 1000 briefs at this point, and it is pretty easy to nail the one page brief.

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8. Brand

Too many companies have now separate Brand from Product marketing, especially on the Master Brand type companies. The “Brand” department handles PR, brand advertising, websites and events. The “product” department handles new products, pricing, distribution, and product-oriented or promotion-oriented advertising. Brand and Product should NEVER be separated. It’s crazy. 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.” To have a successful brand, you need to connect with consumers based on a BIG IDEA for your brand and then line up the 5 connectors (promise, story, innovation, purchase moment and experience)

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9. New Media

New Media has been around 15-20 years old now. I’m not sure I hear the term “new media” on Mad Men when they talk TV ads, but that’s how crazy it sounds at this point. A better way to look at today’s Media is to manage all 5 types: Paid, Earned, Search, Social and Home media. Paid is what we think of the traditional media (TV, Print, OOH, Radio and Digital options). With EARNED media, you need to create and manage the news cycle with mainstream news, expert reviews and blogs. SEARCH Engine Optimization balances earned, key words and paid search. SOCIAL is about engaging users where they are expressing themselves through sharing and influencing. HOME media is where you host your website where you can use as a source of information, influence or even closing the sale.

10. Strategic

To me, the difference between a strategic thinker and a non-strategic thinker is whether you see questions first or answers first. Strategic Thinkers see “what if” questions before they see solutions. They map out a range of decision trees that intersect and connect by imagining how events will play out. They reflect and plan before they act. They are thinkers and planning who can see connections. Non Strategic Thinkers see answers before questions. They get to answers quickly, and will get frustrated in the delays of thinking. They think doing something is better than doing nothing at all. They opt for action over thinking. They are impulsive and doers who see tasks. They are frustrated by strategic thinkers. But to be a great marketer, you must be a bit of a chameleon. While pure strategy people make great consultants, I wouldn’t want them running my brand. They’d keep analyzing things to death, without ever taking action. And while tactical people get stuff done, it might not be the stuff we need done. I want someone running my brand who is both strategic and non-strategic, almost equally so. You must be able to talk with both types, at one minute debating investment choices and then be at a voice recording deciding on option A or B. You need to make tough choices but you also have to inspire all those non-strategic thinkers to be great on your brand instead of being great on someone else’s brand.

It is OK to use these words. Just make sure you use them properly.

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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In advertising, what comes first: the MEDIA choice or the CREATIVE idea?

Of course the consumer always comes first. However, as you begin the advertising process, Brand Leaders need to figure out whether the creative determines the media choice you make or the media choice helps frame the creative. When I started in marketing, way back in the mid 90s, life was a little simpler because the media and the creative were both under one agency roof. The meetings were simple: you’d see your various TV script options, give some feedback and then the room would go silent and the account person would say “now let’s look at the media plan” and the media person would take you through a 15 page presentation on where else the idea of your TV script could go. You would see some magazine, OOH and even some sampling idea. Back then, there was no internet advertising yet.

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Then one day, our media folks from our agency were spun off, had a new name, moved offices and had a new President. It now just meant we had two presentations and the Brand Leader now had to make sense of things and try to piece it together. About a year into that new relationship, I was sitting there confused and asked the question: “So what comes first, the media choice or the creative idea?” The room went silent for about 5 minutes. Then of course both sides talked over each other, both saying it was them that came first.  

All Marketing Execution has to do something to the brand–getting the consumer to think, act or feel differently about your brand. Media is an investment against your strategy and creative is an expression of your strategy. Both media and creative are only useful if they connect with consumers. Great advertising must connect through very insightful creative that expresses the brand’s positioning and told in a way that matters to those who care the most. Great advertising must be placed within the consumers’ life where it will capture their attention and motivate them in the expressed desired way to meet the strategy. So really, the consumer comes first and strategy comes second. Media and creative need to work to jointly capture the consumer and deliver the strategy.  

With separate agencies, the problem now rests with Brand Leaders to figure it out. While one could theoretically argue that if the Creative Idea of the advertising is so big, it should work in every medium. That’s just not always true in reality. Some ideas just work better in certain mediums. Yet the media people could also theoretically argue that if you go for the most efficient and effective media option, the media will do the work for you. That’s also not true. The best overall advertising should work focus on what has the most impact and what has the highest efficiency.  

Here’s a solution for Brand Leaders 

The three questions you always need to keep in your head at all times: 1) where is your consumer 2) where is your brand and 3) how does the creative idea work? 

1.  Where is your consumer?

You should really understand who your consumer is, and who they are not. You need to make sure you understand the insights about them, because it’s those insights within your creative that allow you to connect with them. They’ll say “they get me”. You should always be mapping out a day in the life of your consumer. Get in their shoes and say “what does my consumer’s day look like and how will my message fit or interrupt their life?” Take a “be where they are approach” to your media. 

2.  Where is the Brand?

First thing you have to do is consider where your brand is on the Brand Love Curve where brands go from Indifferent to Like It to Love It and all the way to Beloved. At INDIFFERENT, it’s about announcement style such as mass media, LIKE IT becomes about separating yourself from the competition while LOVE IT and BELOVED you’ll start to see the growing importance of event marketing to core users or social media as a badge of honor to share with others.

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3.  How does the Creative work? (The ABC’S)

The best advertising should draw ATTENTION, be about the BRAND, COMMUNICATE the main message and STICK in the consumers head long beyond the ad.

  • Attention: You have to get noticed in a crowded world of advertising. Consumers see 7,000 brand messages per day, and will likely only engage in a few. If your brand doesn’t draw attention naturally, then you’ll have to force it into the limelight.
  • Branding: Ads that tell the story of the relationship between the consumer and the brand will link best. Even more powerful are ads that are from the consumers view of the brand. It’s not how much branding there is, but how close the brand fits to the climax of the ad.
  • Communication: Tapping into the truths of the consumer and the brand, helps you to tell the brand’s life story. Keep your story easy to understand. Communication is not just about what you say, but how you say it—because that says just as much.
  • Stickiness: Sticky ads help to build a consistent brand/consumer experience over time. In the end, brands are really about “consistency” of the promise you want to own. Brands have exist in the minds of the consumer. 
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In the reality of advertising, not every ad execution will be able to do all four of the ABC’S.  When I’m in the creative room, I try to think about which of the two ABC’S are the most critical to my strategy. If it is a new product, I want all four, but I have to have: Attention and Communication. If the brand is in a competitive battle I have to have Brand and Communication.  If the brand is a leader and beloved, I need to make sure the advertising is about the Brand and that it Sticks.   

What I recommend you do:

In a sense, you have to work the creative and media together. But that’s impossible. So what I do is hold off on making any media decisions until you see the creative idea and how it is expressed in a few media options. With all the potential media options now available, I ask for 3 executions for each creative option:

        1. Video version
        2. Billboard 
        3. Long Copy Print

Sounds simple, but here’s the logic. With those 3, I can now imagine how the advertising might work across all possible media options. 

  • The “Video” allows me to imagine how the creative would work for traditional 30-second TV ad, a 60-second movie theatre ad, 2 or 3 minute viral video for sharing or even a video you could put on a website.
  • The “Billboard” allows me to imagine how it would work with traditional media options such as out-of-home billboard, bus shelter, in-store poster, packaging copy and the back cover of a magazine.  Or if we want to look at digital, it could be a digital billboard, Facebook photo, website cover.
  • The “Long Print” allows me to imagine what how it might work with a print ad, side panel of packaging, brochures, public relations story-line,  social media feed or even a blog on your website.  

With 3 simple asks against each creative idea, it covers off most of the traditional media options, even covering the digital media. So now as the Brand Leader goes to their Media Agency, they will know how the creative idea would work against any of their recommendations. 

Obviously, we always recommend that you focus. So we’ll likely recommend a lead traditional media and a lead digital and lead social option. You need to make the most out of your limited resources of dollars, time, people and partnerships. However, if we want a creative idea to last 5 years, seeing it work across this many media options gives me a comfort that should I need that option, I know the creative idea will work.

The media math from a client’s view

While the media agency owns the media math that blows your mind, here is some simple client side media math. As clients, we have to make the most of our budgets. 

  • Your production budget should be around 5-10% of your overall advertising plan. If you have small budgets, that may creep up to 20%, but that’s it. Every time you do a new piece of creative, the production dollars go up and the media dollars go down. I’d recommend you focus on one main traditional media and have only one secondary option. This keeps your spend focused. 
  • When it comes to social media, keep in mind there is no free media options. Instead of financial capital, you are now exhausting people capital. Just like the traditional options, I would recommend one lead social media and one secondary focus. Do not try to be all things to all people.  
  • The other reason to focus is to ensure you do great executions and not just “ok”.  Pick the media that maximizes the power of the creative. Don’t exhaust the team by spreading them against too many activities.   
  • Allow 80 to 90% of your media spend be on the highly effective highly efficient media plan. That means 10-20% of your media spend can now go against high IMPACT creative ideas that you know will break through.  

Work with both the creative and media at the same time, figuring out what gives the highest return on your investment

 

To see a training presentation on getting Better Marketing Execution: 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management.

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands.

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Barbie is trying to inspire girls to believe that “you can be anything”

Barbie faced major declines

Barbie has been heavily criticized over the last few decades for projecting an unrealistic image for girls. Launched in 1959, Barbie was the blonde all-American dream, but a complete fiction that many believe to be doing more damage of the self confidence of girls. The modern Moms didn’t want their daughters playing with Barbie anymore. All of a sudden, Barbie sales declined 20% in 2012 to 2014. The brand needed to make a dramatic change.

Barbie took a dramatic step forward–even if just to catch up to where they should be–by launching new possibilities with realistic options for body type (curvy, tall and petite) and various ethnicities (seven skin tones) They needed to create a Barbie that Moms would think acceptable for their girls to play with. These moms wanted a good symbol for their daughters, not something unrealistic and unattainable. The new Barbie is a good first step.

 

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Next, the supporting Advertising for Barbie has gone viral with over 20 Million views. The ad starts by showing a young girls in situation as a College Professor, a Museum curator, a Veterinarian or a Soccer coach.  The supporting copy: “When a girl plays with Barbie, she imagines everything she can become.” with a bold tag-line:  YOU CAN BE ANYTHING. This is a great ad with a new message that should fit with the modern moms.

 

Barbie sales are up 8% this past holiday period, a good start to the turnaround. 

Here are five lessons for Brand Turnarounds

  1. Ensure the right people in place: Before even creating the plan, you need to get the right leadership talent in place. Talent, motivation, alignment. Mattel brought in new CEO last spring who reshuffled a lot of the executives in an effort to turn the business around.
  2. Look to close leaks on the Brand: Use brand funnel to assess, using leaky bucket tool to close leaks. Find out where the specific problems are coming from. Barbie has done a nice job in listening to their consumers, the moms who were rejecting the brand due to stereotypes.
  3. Cut the fat, re-invest: go through every investment decision, invest only in programs that give you an early break through win. Even faced with Sales declines, Mattel made a smart move to cut costs by 10% to drive profits back into the business. It is hard to do a turnaround while the profit keeps falling.
  4. 3-stage plan: In stage 1, find early/obvious win, halts slide, helps motivation. In stage 2, invest behind new positioning/new plan, focused decisions, take risks. In stage 3, make adjustments to plan, build innovation behind new ideas that fit plan. Barbie started talking about the plan a year ago, listening to consumers and preparing for the big launch. So far, they’ve stemmed the decline, but now they need to build a plan for the next 3-5 years that grows this business.
  5. Motivating a demotivated team: Losing can be contagious to a culture/team. Recognize wins to fuel performance driven culture. People on the team needed new leadership and needed room to take chances with this iconic brand.

We run workshops on Strategic Thinking that looks at brand strategy including competitive war games, focusing on your core strength, building connectivity with consumers and situational strategy.

 

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept.

custom_business_card_pile_15837We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

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How to lead the entire Brand Planning process on your business

4 stages of the planning process

Our  planning process starts with a deep-dive business review, lays out the brand positioning. We use the Brand Plan to get everyone on the same page, helping make decisions, resource allocations and set up the brand’s execution. We then build an execution plan that helps every stakeholder to contribute their part to the brand.

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First, you need to go deep to gain an understanding

Every situation has unique challenges. It is important to do the work to understand where your brand is today, what is holding it back from the expected growth. Whether that means doing a deep dive on the business or challenging your people with key questions that will highlight the challenges facing the brand.

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To read more on conducting a Deep Dive Business Review, here is our workshop that we run to help make brand leaders smarter:

Create a winning brand positioning statement for your brand

You need to create a brand idea and brand positioning that will help your brand win in the market. Find a winning brand positioning, that balances the rational and emotional benefits.  Work to create a Big Idea that frames the external and internal promise of your brand. We recommend that you validate a Brand Concept with your consumers to see if  you have something unique, own-able and motivating.

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To read more on developing a unique, own-able and motivating Brand Positioning Statement, here is our  workshop that we run to help make brand leaders smarter:

Write a Brand Plan that everyone can follow

The main goal of writing a focused strategic brand plans is to get everyone on the same page, so that everyone in your organization can follow. Here, you want to get your team lay out a long range strategic road map and brand plan that includes a vision, purpose, goals, strategies and tactics. Then, work with your team to create actionable project plans for each tactic with goals, milestones and budget.

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To read more on building a Brand Plan that everyone can follow, here is our workshop that we run to help make brand leaders smarter:

Build the marketing execution plan that drives growth for your brand

We use the Big Idea map to lay out a plan every consumer touch point–including the brand promise, brand story, innovation, purchase moment and brand experience. From there, we match up with the consumer buying system to focus on moving consumers from awareness to purchase to repeat and on to becoming loyal. This sets up the communication brief that frames both the creative and media, helps drive the innovation plan, sets up the culture of the organization as the backbone to the experience and manages the purchase moment through channel management and merchandising.

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To read more on getting the most from your Marketing Execution, here is our workshop that we run to help make brand leaders smarter:

 

We run workshops that help Brand teams make better decisions on the way to smarter action plans

We are big believers in the workshop process. We think it’s the best way to get the decision makers in the room, push for alignment, make decisions and drive the team towards action. The most noticeable point of difference we offer is that we will challenge you with new ideas to get your brand and your team in a better position for future growth. As the facilitator, I bring my executive experience into the room, ready to challenge the thinking and pushing for better answers. It’s like having another VP Marketing in the room.

While anyone can recommend a strategy, we recommend a realistic strategy that drives towards action. Quite frankly, I’m not big on consultants that just bring in big presentations that just sit on the shelf and never make it to the market. They cost a lot, take a long time, and in general they are written by consultants that have never run a business. Even Ad Agencies can recommend strategy, but they usually bring an agency bias and just give strategies that set up work they want to make–whether it drives growth for your business or not. I’ve run many businesses and I understand the pressure you’re facing on driving growth.

My personal promise to you is that I will get your brand in a better position for future growth

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. custom_business_card_pile_15837We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. 

We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution. 

To contact us, email us at graham@beloved-brands.com or call us at 416-885-3911. You can also find us on Twitter @belovedbrands. 

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BMW Films: Branded content light years ahead of its time

Twelve Years Ago…

2000px-BMW.svgAs marketers are abuzz with Content Marketing, my challenge is to push yourselves to do great content you love, not just ok content work you like.  While being part of the community and targeting unique users is the right strategy, creating bad content might do more damage than good. It looks cheap. When you forget to entertain, when you don’t put in the quality in execution, or where your brand is too obviously jammed into a piece of content that has nothing to do with your brand. When you don’t astonish and delight the consumer, you fall flat. So, don’t just do content, do content that you and your consumer will love.

In 2001, BMW launched BMW Films, light years ahead of the industry. While everyone was still worried about producing 30s and 15s and newspaper ads, most brand leaders were still thinking whether they could afford to put 1% of their budgets into the Internet. From a brand point of view to that point, BMW had always used traditional media like TV and Print to sell their cars. But they saw that things were changing, especially seeing that the role of the internet on the purchase cycle. Roughly 85% of BMW purchasers used the Internet before purchasing a BMW. BMW knew that the average work-hard, play-hard customer was 46 years old, with a median income of about $150,000. Two-thirds were male, married, and had no children. In general, we see that Brands move along the Love Curve, going from Indifferent to Like It and Love It before becoming that Beloved Brand for Life.  Competitively, BMW had a lot of love but it was still battling traditional rival Mercedes who had the most love of all Luxury Car Brands. Everyone else was compared to Mercedes.  Also, brands like Lexus and Infiniti were gaining some emotional support from consumers and gaining share. BMW needed something to show consumers what makes a BMW truly a BMW. They needed to put their stake in the ground to push to be the Most Beloved Luxury Car brand. They needed something that the consumer would love and in turn love the BMW brand.

Integrated Content at it’s Best

The idea of BMW Films was to cast the BMW car as a hero into the starring role of a movie, and in fact many movies. BMW assembled a cast of A-list directors (Guy Richie, Tony Scott, Ang Lee) and A-list actors (Clive Owen Forest Whittiker, Madonna, Mickey Rourke), and developed scripts within the basic framework of having a central character that helped people through difficult circumstances using deft driving skills—in a BMW. The car became the star. Each director who chose a script was then given complete creative control over content and direction, something they would be hard-pressed to find in Hollywood, and something that BMW ordinarily wouldn’t allow if filming a traditional advertisement.

BMW used traditional media with mock movie trailers on TV and on-line advertising to surround their consumer and drive traffic to the website. The end results were staggering: the series had been viewed over 100 million times in four years and had changed the way products were advertised. BMW has had a great decade of sales, recently surpassing both Lexus and Mercedes as the #1 luxury brand.

BMW Films was out there. It took risks, and was an incredible production. To me, it’s still the benchmark for Content Marketing. To me, it’s like Bob Beamon surpassing the long jump record by 2 1/2 feet when everyone else was measuring in inches. It’s like Babe Ruth hitting 60 home runs when the next guy had 17. The love for a brand normally comes when we love the work we do on that brand. The love permeates through our work and onto the consumer. However, if we don’t love the work, how do we expect our consumers to magically love the output of our work and then love our brand?  Not likely. My challenge to you:  push yourself to love it, don’t just kinda like it. Don’t settle.

Since BMW Films, I have seen some great viral work like T-Mobile, incredible integrations which make me stare and say “wow, I wish I did that”. But in the past 10 years I’m yet to say “Now that’s better than BMW Films”.  

Hey Marketing Community!  My challenge to you:  Beat This!!!

 

 

To read more about how the love for a brand creates more power and profits:

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

 

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