Go beyond Porter’s Model to understand the 8 sources of brand power

Porter’s 5 forces modelWhen I was in business school, I learned about Michael Porter’s five forces model as a way to understand the industry attractiveness and competitive intensity. It’s a great starting point to get you to think more strategically.  However, I want to show you how you can go beyond Porter and start to see other sources of power, which reinforces the idea that the more loved a brand is by consumers, the more powerful and profitable that brand will be.

Start with Porter’s Model

I created the brand love curve, which shows the differences in how consumers feel about a brand as they move through five stages. It defines their feelings as unknown, indifferent, like it, love it and onto the beloved brand status.

For unknown brands, the strategic focus should be to stand out so consumers will notice the brand within a crowded brand world. For indifferent brands, the strategy must establish the brand in the consumer’s mind so they can see a clear point of difference. At the like it stage, the strategy is to separate the brand from the pack, creating happy experiences that build a trusted following. And at the love it stage, the focus shifts to tugging at heartstrings to tighten the bond with the most loyal brand fans. At the beloved brand stage, the strategic challenge is to create outspoken, loyal brand fans who are willing to whisper to their friends on the brand’s behalf.

Porter's Model

Competitive Rivalry = Brand Power

As your brand moves to the loved and beloved stages, the power of buyers goes down. We see that Consumers start to feel more and think less. They become outspoken brand fans who can’t live without the brand. Your brand is becoming a favorite part of their life, built into their normal routines. These brand fans defend you, sell you and crave you at times.

The other source of buyer power are the Channels you sell through. In that relationship, it is the retailers who are powerless against a beloved brand. Consumers switch stores before brands. Stores can’t stand up to the beloved brand.

When it comes to the threat of substitutes, competitive brands cannot match the emotional bond that the beloved brand has with their brand fans. It becomes less about product and more about connection and how the consumer feels through the brand. The beloved brands have a monopoly on feelings.

When it comes to the power of Suppliers, they serve at mercy of the beloved brand. High volumes drive down costs and margins. Suppliers build completely around brand.

New brands can’t break through the emotional bond of a beloved brand. Their message can become lost in the clutter or shut out by the loyal brand fans.

Going beyond Porter

Porter is a great starting point for assessing brand power. However, Brands are in the midst of a significant change on a few fronts. The obvious one people can see and touch is Media. However, don’t forget to look beneath the surface and you’ll start to see a more significant change in brands than the media, and that’s the Brand Culture and the Conversations.

Porter's Model

Brand love generates brand power over buyers

The tighter the bond a brand creates with their consumers, the more powerful the brand will become with all stakeholders. Think of brand love as stored energy a brand can unleash in the form of power into the marketplace. You can use that power with consumers, competitors, new entries, employees, influencers, media, suppliers and channel partners.

These beloved brands command power over the very consumers who love them, as consumers feel more and  think less. These consumers pay price premiums, line up in the rain, follow the brand as soon as it enters new categories and relentlessly defend the brand to any attackers. They cannot live without the brand.

Beloved brands have power over channel customers, who know their consumers would switch stores before they switch brands. Stores cannot stand up to the beloved brand; instead, they give the brand everything in negotiations. The beloved brand ends up with stronger store placement, better trade terms and better promotions from retail partners. 

Competitors can’t compete

The competitors, whether current competitors or new entries, cannot match the emotional bond the beloved brand has created with their brand fans. The beloved brand has the monopoly on emotions, making the consumer decisions less about the actual product and more about how the experience makes consumers feel. Unless a new brand has an overwhelming technological advantage, it will be impossible to break the emotional bond the consumer has established with the beloved brand.

The power over media

The beloved brand also has a power over the media whether it is paid, earned, social or search media. With paid media, the beloved brand gets better placement, cheaper rates and they are one of the first calls for possible brand integrations. The beloved brand is considered newsworthy, so they earn more free media via mainstream media, expert reviews and bloggers. 

Being a famous, beloved brand helps bypass the need for search engine optimization (SEO). The beloved brands become part of the conversation whether it is through social media or at the lunch table at work. Beloved brands can use their homepage website to engage their most loyal users, inform the market of upcoming changes, allow consumers to design their version of the brand and then sell product directly to brand lovers.

The beloved brands have power over key influencers, whether they are doctors recommending a drug, restaurant critics giving a positive review or salespeople at electronics shops pushing the beloved brands. These influencers become fans of the beloved brand and build their own emotions into their recommendations.

Power over suppliers and employees

Suppliers serve at the mercy of the beloved brand. The high volumes drive efficiencies of scale that drive down production costs, backing the supplier into a corner before they offer up most of those savings. Plus, the supplier becomes willing to give in, so that they can use the beloved brand as a selling tool for their supplier services to other potential brands.

Beloved brands even have power over employees, who want to be part of the brand. They are brand fans, who are proud to work on the brand. They embody the culture on day 1 and want to help the brand achieve success.

Brand love means brand profits

With all the love and power the beloved brand generates, it becomes easy to translate that stored power into sales growth, profit, and market valuation. Here are the eight ways a brand can drive profits: 

    1. Premium pricing
    2. Trading up on price
    3. Lower cost of goods
    4. Lower sales and marketing costs
    5. Stealing competitive users
    6. Getting loyal users to use more
    7. Entering new markets
    8. Finding new uses for the brand.

Beloved brands can use higher prices and lower costs to drive higher margins 

 

To learn more about this type of thinking, you should explore my new book, Beloved Brands.

With Beloved Brands, you will learn everything you need to know so you can build a brand that your consumers will love.

You will learn how to think strategically, define your brand with a positioning statement and a brand idea, write a brand plan everyone can follow, inspire smart and creative marketing execution and analyze the performance of your brand through a deep-dive business review.

Beloved Brands book

To order the e-book version or the paperback version from Amazon, click on this link: https://lnkd.in/eF-mYPe

If you use Kobo, you can find Beloved Brands in over 30 markets using this link: https://lnkd.in/g7SzEh4

And if you are in India, you can use this link to order: https://lnkd.in/gDA5Aiw

Beloved Brands: Who are we?

At Beloved Brands, our purpose is to help brands find a new pathway to growth. We believe that the more love your brand can generate with your most cherished consumers, the more power, growth, and profitability you will realize in the future.

We think the best solutions are likely inside you already, but struggle to come out. Our unique playbook tools are the backbone of our workshops. We bring our challenging voice to help you make decisions and refine every potential idea.

We start by defining a brand positioning statement, outlining the desired target, consumer benefits and support points the brand will stand behind. And then, we build a brand idea that is simple and unique enough to stand out in the clutter of the market, motivating enough to get consumers to engage, buy and build a loyal following with your brand.

We will help you write a strategic brand plan for the future, to get everyone in your organization to follow. It starts with an inspiring vision that pushes your team to imagine a brighter future. We use our strategic thinking tools to help you make strategic choices on where to allocate your brand’s limited resources.

Our brand playbook methodology will challenge you to unlock future growth for your brand

  1. Our deep-dive assessment process will give you the knowledge of the issues facing your brand, so you can build a smart plan to unleash future growth.
  2. Find a winning brand positioning statement that motivates consumers to buy, and gives you a competitive advantage to drive future growth.
  3. Create a brand idea to capture the minds and hearts of consumers, while inspiring and focusing your team to deliver greatness on the brand’s behalf.
  4. Build a brand plan to help you make smart focused decisions, so you can organize, steer, and inspire your team towards higher growth.
  5. Advise on advertising, to find creative that drives branded breakthrough and use a motivating messaging to set up long-term brand growth.
  6. Our brand training program will make your brand leaders smarter, so you have added confidence in their performance to drive brand growth.

To learn more about our coaching, click on this link: Beloved Brands Strategic Coaching

To learn more about our training programs, click on this link: Beloved Brands Training

If you need our help, email me at graham@beloved-brands.com or call me at 416 885 3911

You have my personal promise to help you solve your brand building challenges. I will give you new thinking, so you can unlock future growth for your brand.

Signature

Graham Robertson

Founder and CMO, Beloved Brands Inc.

A Brand Vision should scare you a little, but excite you a lot!!!

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Every brand plan should start with a brand vision of where you want to be in the long term. Yet, too many brand leaders try to write their brand plans so quickly, they go directly to strategies and action plans. They never think far enough out (e.g. This is a one year plan) but rather just focus on HOW to win NOW with their get-it-done attitude.

But, if a brand vision answers “where could we be?” and the brand strategy answers “how can we get there?” then how could you ever write the strategy without knowing the vision. How can you write how to get there, if you don’t know where “there” is?

Imagine leaving the house, without knowing where you’re going.

Think of the brand vision as the end-in-mind goal of an ideal state where you would feel completely satisfied that you achieved it. To get to that idealized state, we always ask the question:

“If you woke up on January 1st, ten years from now, and you were in a great mood because of what was happening on the brand, then what are the three biggest things on your business that you would you have accomplished?

At first, we keep it as a “straw dog” vision, with 3 simple bullet points, knowing we can always word-smith it later. But we have found that we have to ask this same question 5+ times, because normally the first few answers are complete B.S., filled with corporate rhetoric, cool statements that look good but say very little and lines that try to please your boss rather than provide the authentic direction of where you could be. 

Does having a brand vision statement pay out?

Companies that have vision statements have a better sense of where they are going. And the proof that it pays off:

  • A Harvard Study across 20 industries looking at businesses showed that companies with vision statements saw their revenue grew more than four times faster; job creation was seven times higher; their stock price grew 12 times faster; and profit performance was 750% higher.
  • Newsweek looked at 1000 companies and found companies with vision statements had an average return on stockholder equity of 16.1%, while firms without them had only a 7.9% average return.
  • “Built to Last” showed that for companies with vision statements, that a $1 investment in 1926 would have returned $6,350 compared to only a return of $950 for comparable companies without a vision.

A brand vision helps to frame the overall brand plan

“Where could you be” should be a stake-in-the-ground that inspires and pushes you, while motivating others. It should scare you a little, but excite you a lot. Think of the Vision as the end in mind achievement towards your purpose. Some call them Big Hairy Audacious Goals (BHAGs). Even if it’s a one year plan, think 10 years out: if you became this one thing, you would know that you are successful. Ideally, balance the statement in the qualitative (want) and quantitative (measurable). It should be motivating and enticing to get people focused. It should be personal and speak to why you get up in the morning—supporting why you got into this business.

Things that Make a Good vision: 

  1. Easy for employees and partners to understand and rally around
  2. Think about something that can last 5-10 years or more
  3. Balance between aspiration (stretch) and reality (achievement)
  4. It’s ok to embed a financial ($x) or share position (#1) element into it as long as it’s important for framing the vision.

The watch outs for vision statements:

  1. It’s not a positioning statement.  Almost positioning neutral  Let the positioning come out in the strategy.
  2. Make sure we haven’t achieved it already.  If you are #2, then don’t put “be #2”.
  3. Don’t put strategic statements. Vision answers “where could we be” and not “how can we get there”
  4. Try to be single-minded: Tighten it up and don’t include everything!! Can you say it in an elevator. Can you actually remember it? Can you yell it at a sales meeting?

Your brand vision scare you a little, but excite you a lot. 

There is no value in having a brand vision that is easy to meet. I once had a client tell me their vision was “to be the #2 brand” and I said “what are you now” and they said “we are #2 now”.  I said “this was the easiest project I’ve ever worked on”.  Having an easy vision  won’t push you, stretch you or inspire you to work harder. A funny story: when my son was in 9th grade, his teacher asked on the first day “what grade do you hoped to achieve in the class?”  My son put a D. When I asked him why, he said “I like to over-achieve”. I would rather he put A+ and miss it, than a D and over-deliver. Imagine if he had an A- at the mid-term, the stretch vision would have motivated him to work even harder or change his habits to reach that stretch goal of an A+. Even if he fell short, he would have achieved an A. It’s better to narrowly miss a stretch vision that pushed and inspired you to work harder than to have an easy goal you cheerfully achieved. 

Below are a few examples of brand visions that will hopefully inspire you.

  • I love the Nike vision of “Crush Adidas”, written in the 1960s. I’m sure when they wrote that vision, it seemed somewhat insurmountable (scares you a little) but certainly provided a single-minded focus (excites you a lot) and steered them to actually crushing Adidas by the early 1980s, forcing Adidas to make a necessary come-back.  
  • Princess Margaret Hospital is a cancer hospital with a beautiful and inspiring vision to “conquer cancer in our lifetime”. This speaks to the ongoing on-going battle against cancer, but speaks to the purpose (the why) that everyone connected to the hospital lives and breathes everyday.
  • Lexmark took the inspiration even further by getting the employees to write the brand vision, because they are the brand. The idea of “customers for life” helps inspire and focus everyone who works for Lexmark. 

vision 2.001A well-articulated vision can really make a difference for employees, giving them both a challenge and focus to what they do each day. For service driven companies, where people are the brand it becomes essential.  Adding in brand values and even service values can help people in knowing what they should be doing each day and how they should be doing it. For a product driven brand, it can help all drive focus for all those working around the brand whether that’s ad agencies, R&D, sales or operations.

A brand vision has to stretch you, the point of uncertainty that you can actually meet it.

Slide1To see how a Brand Vision helps to frame the brand plan, read the following presentation: 

I run Brand Leader Training 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 see the training presentations, visit the Beloved Brands Slideshare site at: 

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

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Do “Blue Ocean” opportunities really exist? Or is it all just “Red Ocean”?

fedex-blue-ocean-strategy-1-638People love brainstorming “blue ocean” ideas where they’ll talk about how to create their own uncontested market space and make competition irrelevant. I’ve participated in those sessions and admit they are a blast. It’s a great tool for opening up business minds that might be stuck, get them out of the usual and explore where else you could go.
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At Beloved Brands, we always start with the consumer so that we ensure we are meeting the needs of consumers rather than blindly putting things out into the marketplace that no one wants. However, the second check is the competitive nature of your positioning to make sure I’m not blindly putting things out that someone is already doing. Murder and Strategy have one thing in common, they both start with opportunity. Yes, finding those blue ocean strategies, can create opportunities.However, the reality is that most brands play in a highly competitive space where every gain you make, comes at the expense of someone else, who is also constantly trying to win. Netflix has dramatically impacted network television and movie theatres, Uber is experiencing fights across North America with Taxi companies and Municipal governments and Amazon is fighting against brands selling direct. While you might use Blue Ocean to create these type of ideas, you have to use Red Ocean when you start to run these businesses. Be prepared that anytime you take a dollar away from someone, they will fight back.

How to win in a Red Ocean world

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

The key is to find a unique selling proposition for your brand.  You don’t always need to find a rational point of difference as long as there is room to be emotionally unique.Slide04

Map out everything your consumer wants–all the possible need states. Then map out all the benefits that you and your competitors can do better than anyone else–both functional and emotional zones.  You want to find that intersecting zone where what you can do best matches up to a need state of the consumer. Then find a way to serve that need state to the best of your ability and transform it into an even bigger deal than first meets the eye. Avoid the intersecting zone where your competitor is better than you and please avoid that zone where you and your competition foolishly battle in an area that “no one cares” about. The battle ground zone is where both you and your competition can satisfy the consumer need at an equal rate. To win in this situation, you need to get creative and find ways to out-execute or find some emotional connection that changes the game and makes you the clear winner.

Competitive Warfare

At the start of any strategy definition, you should ask “where are we?” Here are four questions to be asking that force you to choose four possible solutions to each.

  1. What is your current share position in the market?
  2. What is the core strength that your brand can win on?
  3. How tightly connected is your consumer to your brand?
  4. What is the current business situation that your brand faces?

This article focuses on question one which speaks to where you rank in the market, which a great indicator of how much power you can command in the market.  You have four choices, using Marketing Warfare (Trout and Ries) you are either the Leader, Challenger, Niche or a Guerilla.

  • Leader (defensive): Leader of category or sub-category defending their territory by attacking itself or even attacking back at an aggressive competitor.
  • Challenger (offensive): Challenger’s attack on the leader to exploit a weakness or build on your own strength.
  • Flanking: An attack in an open area where the Leader is not that well established.
  • Guerrilla (Niche): Go to an area where it’s too small for the Leaders to take notice or are unable to attack back.

The leader uses defensive strategies

Defensive strategies should be pursued by the leader. Not only the market share leader, but the perceived leader in the consumers’ mind. Attacking yourself is the best defense. Identify and close leaks in service, experience or products. Introduce new products superior to your current. Challenge the culture to step it up to continually get better and stay ahead of the competitors. Can’t be complacent or you’ll die. The Leader blocks all offensive moves. Keep an eye on your competitors moves—and adjust your own brand to ensure you defend against their attacks. Attack back with an even greater force than the one attacking you. Demonstrate your brand power. Leverage all the brand power you’ve mustered to maintain your positional power.Slide1

The challenger brand uses offensive strategies

The best offensive attack is to actually find weakness within the Leader’s strengths. Turn a perceived strength around is very powerful. Attack a weakness might be insufficient. Be careful of the Leader’s Defensive moves. Anticipate a response with full force—possibly even greater than yours. Avoid wars that drain resources and hold same share after the war. Attack on as narrow of a front as possible to ensure your resources are put to that area—which might be more force than the leader puts to that one area. Narrow attacks are effective when the leader tries to be all things to all people—enabling you to slice off a part of their business before they can defend it. Leapfrog Strategy, technology and business models are game-changers in the category.Slide2

The flanker brand stays clear of any battles

The flanker strategies go to uncontested areas, in the safety where the leader is not competing. Make sure you are the first in this area. Speed and surprise can help win the uncontested area before the Leaders take notice. Make your move quickly and stealthfully. Follow through matters, to defend the area you’ve won. Others may follow—whether it’s the leader trying to use their might or copy cats looking for an early win. You can win with new targets, price points (premium or value), distribution channels, format or positioning. Flanking, while lower risk of attack from the leader, is a higher risk with consumers because innovation is always riskier because consumers might not like the concept.

Guerrilla warfare wins where no one notices or cares

Pick a segment small enough that it won’t be noticed and you’ll be able to defend it. Be aggressive. Put all your resources against this small area, so that you’ll have the relative force of a major player. Be flexible and nimble. You’ll need to enter quickly to seize an opportunity that others aren’t noticing, but also be ready to exit if need be—whether the consumers change their minds or competitors see an opportunity to enter. Explore non-traditional marketing techniques to get your brand message out and your brand into the market quickly. Because you’re playing in a non-traditional market, you’ll be given leeway on the tools you use. For Guerrilla brands, it is better to be loved by the few, than liked or tolerated by many.Slide1

Marketing Warfare Rules for Success

  1. Speed of attack matters. Surprise attacks, but sustained speed in the market is a competitive advantage.
  2. Be organized and efficient in your management. To operate at a higher degree of speed, ensure that surprise attacks work without flaw, be mobile enough.
  3. Focus all your resources to appear bigger and stronger than you are. Focus on the target most likely to quickly act, focus on the messaging most likely to motivate and focus on areas you can win.   Drawn out dog fights slows down brand growth. Never fight two wars at once.
  4. Use early wins to keep momentum going and gain quick positional power you can maintain and defend counter-attacks.
  5. Execution matters. Quick breakthrough requires creativity in your approach and quality in execution.
  6. Expect the unexpected. Think it through thoroughly. Map out potential responses by competitors.

In a red ocean world, you need to efficiently own your territory and ruthlessly beat your competitors.

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. 

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 gets in the way of you loving the work you do?

love workWhen I was a Brand Manager and my son was in kindergarten at the time, I once said that our lives were very similar.  We make stuff that we want to put on our fridge.  It stuck with me because I started to look at work and wonder if it was “fridge worthy”? Would I be proud enough of this to put it up on the fridge at home. In other words, did I love it?

I’ve always stressed to my team “you have to love what you do, that has to be the benchmark on whether we approve things–do you love it?” And one day, one of fridge artmy Group Marketing Directors said to me “Loving it seems a bit unrealistic, why do we have to love it?  Why not just like it”.  Great question. I suppose not all marketers think this way, and I’m fine with that.  If you think I’m crazy, that’s fine. Stop reading. I just wish I competed with you.  

If you love it, you’ll fight for it. You’ll believe in it so much, you’ll fight all the way to the top of your organization to make it happen. You’ll work harder for it. The work will inspire you and give you energy. You’ll stay up till 3am working on it. You will want to make sure it’s perfect, knowing details matter. You will inspire everyone working on the project to share your vision. If you love what you do, the consumer will know. Think of the most beloved brands, whether it is Disney, Starbucks, Apple or Ferrari and look how much energy the people working there put into the brand. In fact, show me a brand where people working there settle for good and I will show you an OK brand that struggles for its existence.  

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The more connectivity you have with your consumer, the more power your brand has. And with that power, comes faster growth and deeper profits.  Your relationship between your brand and your consumer has to be treated like a real relationship. As Oscar Wilde said “never love anyone who treats you like you are ordinary”.  In a brand sense, “if you don’t love the work you do, then how do you expect the consumer to love your brand”.

The answer for that Director of mine:  “If you love your work, they will love you back.” 

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What gets in your way of Loving it?
  1. Not enough Time: Oddly time forces most people to make quick approvals of things and opt for next time.not-ok My first recommendation is to build in longer time cycles so you can have room in the schedule to keep pushing for work you love. But my second recommendation is to use the pressure of time to put pressure on everyone on your team. Rather than approving work you think is OK, next time, just stare at everyone and say “yes but I just don’t love it.  And I need to love it” and see if you can inspire the team to push even harder, even in the face of a deadline. I’ve always looked at deadlines as my ally and use it to my advantage to get what I want.  Not to cave and settle for OK.  
  2. Risk vs Fear: The best of marketing ideas have risk to them. If you eliminate all risk, then you also eliminate any big wins. good-vs-differentA great idea should scare you a little, but excite you a lot. Given, we see 6,000 brand messages a day, you have to find a way to stand out. To be a great brand, you must be better, different or cheaper–and that different shows up in the work that you do. Looking at the grid beside us, the obvious answer is “Good and Different”. When you are not different, it just falls flat, consumers don’t connect and they end up feeling blah about the brand.  Push yourself to find a difference not in your brand’s positioning but in the brands execution. Take a chance, even if it feels risky. The middle of the road might feel safe, but it also where you find dead animals run over in the night.  A great story is the lesson Steve Jobs and the color “Beige”.  When Jobs was launching the original Mac back in the late 1970s, he wanted to make sure the color was different.  The plastic mould company presented him with 2,200 variations of beige until he picked one. While the behavior of Jobs were obsessive, his virtues show up in his work. Would Apple be Apple if he didn’t push.  
  3. Do you care enough?  If you don’t care, you should give up your desk to someone who does. I know it sounds harsh. But the role of Brand Leader is very difficult. You are competing in a finite market, with very talented people at the competition who seem to care about beating you every day. If you only sort of care, then is this really the job for you?  Push yourself, find ways to inspire yourself.  
  4. Are you able to motivate partners? As Brand Leaders, we never really make anything. We think we only have one weapon which is that of decision-making. I’ve heard some Brand Leaders say, I can really only say “yes” or I can say “no” to the work that comes to my desk. That’s so not true. Your primary role is to motivate everyone who touches your brand. Not just those you directly deal with (Your team, account people at the agency or your sales people) but those who you don’t directly deal with. If someone talks about your brand at the kitchen table, then they are part of the Brand team. That means sound editors, producers or actors. As a leader if you want to motivate everyone, then make it personal. Deal with everyone on a face to face basis. Once the brief is approved, how many of you are saying, I want to take the Creative Team to lunch just to get to know them?  When you walk into an edit studio, shake hands with the sound editor and stand near them. Because in this meeting, you might need them on your side. When you go to the shoot, talk to the actors directly. Make it personal. Let everyone know what you’re trying to do, how important it is to you, and how happy you are to have them on your team. That’s inspiring.  Most Brand Leaders only work on one major campaign per year.  But everyone on your team likely works on 40 or 60 or even 80.  What are you doing to make sure that your work is the one they love the most this year?  Just like our hurdle above asking you the brand leader “do you love it”, then how do you make sure everyone who touches your work shares in your love. Leadership should be called Follower-ship because it’s not about being out front, but rather when you turn around “are people following you?”   
  5. Strategy versus Execution. Execution in marketing is all about the Brand Leader’s balance between control and freedom.  What I find odd is that most Brand Leaders give too much freedom where they should be exhibiting control and tries to exhibit too much control where they should be giving freedom. Brand Leaders should control the Strategy, giving very little wiggle room.  And yet Brand Leaders write such broad-based strategies with a broad target, many benefits, and a long list of “just in case” reasons to believe. It’s almost as though they figure, I’ll write so many things it will give the agency options. That just means you gave up control of your strategy. You want a tight strategy, with very little wiggle. On the other hand, Brand Leaders exhibit control over the execution.  “We don’t want humor, we’d like to use a popular song, we don’t like the color red and we want to make sure it doesn’t offend anyone”.  The list of mandatories on the brief is long.  My recommendation is that if you write a very tight strategy, you should be willing to give freedom to the execution.  
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.  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.

 As a Leader, you will find that if you have passion, people will follow. It’s inspiring and it’s contagious.  Challenge yourself to set a new bench mark to love what you do. Reject OK because OK is the enemy of greatness.     

Another article you might enjoy is to see how Love for your brand can translate into more power for your brand and in turn more profits.  Click on: Love = Power = Profit

Love what you do.  Live why you do it.  

email-Logo copyABOUT BELOVED BRANDS INC.:  At Beloved Brands, we are only focused on making brands better and making brand leaders better.Our motivation is that we love knowing we were part of helping someone to unleash their full potential.  We promise to challenge you to Think Different.  We believe the thinking that got you here, will not get you where you want to go.  grOur President and Chief Marketing Officer, Graham Robertson is a brand leader at heart, who loves everything about brands.  He comes with 20 years of experience at companies such as Johnson and Johnson, Pfizer Consumer, General Mills and Coke, where he was always able to find and drive growth.  Graham has won numerous new product and advertising awards. Graham brings his experience to your table, strong on leadership and facilitation at very high levels and training of Brand Leaders around the world.  To reach out directly, email me at graham@beloved-brands.com 

 

At Beloved Brands, we love to see Brand Leaders reach their full potential.  Here are the most popular article “How to” articles.  We can offer specific training programs dedicated to each topic.  Click on any of these most read articles:

Ask Beloved Brands to more love for your brand or ask how we can help train you to be a better brand leader.

Go beyond Porter’s Model to understand the 8 sources of brand power

Porter’s 5 forces modelWhen I was in business school and I learned about Michael Porter’s five forces model as a way to understand the industry attractiveness and competitive intensity. It’s a great starting point to get you to think more strategically.  However, I want to show you how you can go beyond Porter and start to see other sources of power, which reenforces the idea that the more loved a brand is by consumers, the more powerful and profitable that brand will be.

Start with Porter’s Model

I created the brand love curve, which shows the differences in how consumers feel about a brand as they move through five stages. It defines their feelings as unknown, indifferent, like it, love it and onto the beloved brand status.

For unknown brands, the strategic focus should be to stand out so consumers will notice the brand within a crowded brand world. For indifferent brands, the strategy must establish the brand in the consumer’s mind so they can see a clear point of difference. At the like it stage, the strategy is to separate the brand from the pack, creating happy experiences that build a trusted following. And at the love it stage, the focus shifts to tugging at heartstrings to tighten the bond with the most loyal brand fans. At the beloved brand stage, the strategic challenge is to create outspoken, loyal brand fans who are willing to whisper to their friends on the brand’s behalf.

Porter's Model

Threat of Substitutes

As your brand moves to the loved and beloved stages, the power of buyers goes down. We see that Consumers start to feel more and think less. They become outspoken brand fans who can’t live without the brand. Your brand is becoming a favorite part of their life, built into their normal routines. These brand fans defend you, sell you and crave you at times.

The other source of buyer power are the Channels you sell through. In that relationship, it is the retailers who are powerless against a beloved brand. Consumers switch stores before brands. Stores can’t stand up to the beloved brand.

When it comes to the threat of substitutes, competitive brands cannot match the emotional bond that the beloved brand has with their brand fans. It becomes less about product and more about connection and how the consumer feels through the brand. The beloved brands have a monopoly on feelings.

When it comes to the power of Suppliers, they serve at mercy of the beloved brand. High volumes drive down costs and margins. Suppliers build completely around brand.

New brands can’t break through the emotional bond of a beloved brand. Their message can become lost in the clutter or shut out by the loyal brand fans.

Going beyond Porter

Porter is a great starting point for assessing brand power. However, Brands are in the midst of a significant change on a few fronts. The obvious one people can see and touch is Media. However, don’t forget to look beneath the surface and you’ll start to see a more significant change in brands than the media, and that’s the Brand Culture and the Conversations.

Porter's Model

Brand love generates brand power over buyers

The tighter the bond a brand creates with their consumers, the more powerful the brand will become with all stakeholders. Think of brand love as stored energy a brand can unleash in the form of power into the marketplace. You can use that power with consumers, competitors, new entries, employees, influencers, media, suppliers and channel partners.

These beloved brands command power over the very consumers who love them, as consumers feel more and  think less. These consumers pay price premiums, line up in the rain, follow the brand as soon as it enters new categories and relentlessly defend the brand to any attackers. They cannot live without the brand.

Beloved brands have power over channel customers, who know their consumers would switch stores before they switch brands. Stores cannot stand up to the beloved brand; instead, they give the brand everything in negotiations. The beloved brand ends up with stronger store placement, better trade terms and better promotions from retail partners. 

Competitors can’t compete

The competitors, whether current competitors or new entries, cannot match the emotional bond the beloved brand has created with their brand fans. The beloved brand has the monopoly on emotions, making the consumer decisions less about the actual product and more about how the experience makes consumers feel. Unless a new brand has an overwhelming technological advantage, it will be impossible to break the emotional bond the consumer has established with the beloved brand.

The power over media

The beloved brand also has a power over the media whether it is paid, earned, social or search media. With paid media, the beloved brand gets better placement, cheaper rates and they are one of the first calls for possible brand integrations. The beloved brand is considered newsworthy, so they earn more free media via mainstream media, expert reviews and bloggers. 

Being a famous, beloved brand helps bypass the need for search engine optimization (SEO). The beloved brands become part of the conversation whether it is through social media or at the lunch table at work. Beloved brands can use their homepage website to engage their most loyal users, inform the market of upcoming changes, allow consumers to design their version of the brand and then sell product directly to brand lovers.

The beloved brands have power over key influencers, whether they are doctors recommending a drug, restaurant critics giving a positive review or salespeople at electronics shops pushing the beloved brands. These influencers become fans of the beloved brand and build their own emotions into their recommendations.

Power over suppliers and employees

Suppliers serve at the mercy of the beloved brand. The high volumes drive efficiencies of scale that drive down production costs, backing the supplier into a corner before they offer up most of those savings. Plus, the supplier becomes willing to give in, so that they can use the beloved brand as a selling tool for their supplier services to other potential brands.

Beloved brands even have power over employees, who want to be part of the brand. They are brand fans, who are proud to work on the brand. They embody the culture on day 1 and want to help the brand achieve success.

Brand love means brand profits

With all the love and power the beloved brand generates, it becomes easy to translate that stored power into sales growth, profit, and market valuation. Here are the eight ways a brand can drive profits: 

    1. Premium pricing
    2. Trading up on price
    3. Lower cost of goods
    4. Lower sales and marketing costs
    5. Stealing competitive users
    6. Getting loyal users to use more
    7. Entering new markets
    8. Finding new uses for the brand.

Beloved brands can use higher prices and lower costs to drive higher margins 

 

To learn more about this type of thinking, you should explore my new book, Beloved Brands.

With Beloved Brands, you will learn everything you need to know so you can build a brand that your consumers will love.

You will learn how to think strategically, define your brand with a positioning statement and a brand idea, write a brand plan everyone can follow, inspire smart and creative marketing execution and analyze the performance of your brand through a deep-dive business review.

Beloved Brands book

To order the e-book version or the paperback version from Amazon, click on this link: https://lnkd.in/eF-mYPe

If you use Kobo, you can find Beloved Brands in over 30 markets using this link: https://lnkd.in/g7SzEh4

And if you are in India, you can use this link to order: https://lnkd.in/gDA5Aiw

Beloved Brands: Who are we?

At Beloved Brands, our purpose is to help brands find a new pathway to growth. We believe that the more love your brand can generate with your most cherished consumers, the more power, growth, and profitability you will realize in the future.

We think the best solutions are likely inside you already, but struggle to come out. Our unique playbook tools are the backbone of our workshops. We bring our challenging voice to help you make decisions and refine every potential idea.

We start by defining a brand positioning statement, outlining the desired target, consumer benefits and support points the brand will stand behind. And then, we build a brand idea that is simple and unique enough to stand out in the clutter of the market, motivating enough to get consumers to engage, buy and build a loyal following with your brand.

We will help you write a strategic brand plan for the future, to get everyone in your organization to follow. It starts with an inspiring vision that pushes your team to imagine a brighter future. We use our strategic thinking tools to help you make strategic choices on where to allocate your brand’s limited resources.

Our brand playbook methodology will challenge you to unlock future growth for your brand

  1. Our deep-dive assessment process will give you the knowledge of the issues facing your brand, so you can build a smart plan to unleash future growth.
  2. Find a winning brand positioning statement that motivates consumers to buy, and gives you a competitive advantage to drive future growth.
  3. Create a brand idea to capture the minds and hearts of consumers, while inspiring and focusing your team to deliver greatness on the brand’s behalf.
  4. Build a brand plan to help you make smart focused decisions, so you can organize, steer, and inspire your team towards higher growth.
  5. Advise on advertising, to find creative that drives branded breakthrough and use a motivating messaging to set up long-term brand growth.
  6. Our brand training program will make your brand leaders smarter, so you have added confidence in their performance to drive brand growth.

To learn more about our coaching, click on this link: Beloved Brands Strategic Coaching

To learn more about our training programs, click on this link: Beloved Brands Training

If you need our help, email me at graham@beloved-brands.com or call me at 416 885 3911

You have my personal promise to help you solve your brand building challenges. I will give you new thinking, so you can unlock future growth for your brand.

Signature

Graham Robertson

Founder and CMO, Beloved Brands Inc.

Love = Power = Profit

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. 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.

Slide1

 

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.

The most beloved brands are based on an idea that is worth loving.

It is the idea that connects the Brand with consumers. And under the Brand Idea are 5 sources of connectivity that help connect the brand with consumers and drive Brand Love, including the brand promise, the strategic choices you make, the brand’s ability to tell their story, the freshness of the product or service and the overall experience and impressions it leaves with you. Everyone wants to debate what makes a great brand–whether it’s the product, the advertising, the experience or through consumers. It is not just one or the other–it’s the collective connection of all these things that make a brand beloved.

Generating Love for the Brand

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 either 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.
The most beloved brands create an experience that over-delivers the promise. How your culture and organization are set up can make or break that experience. Hiring the best people, creating service values that employees can deliver against and having processes that eliminate 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.
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.
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. .
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.

 

Slide1

 

Using Apple as an example, which is the most valuable brand on the planet, the big idea behind Apple is complexity made simple. Since every great brand tackles an enemy of the consumer, Apple takes on the frustration and intimidation that consumers have with technology. The Apple brand promise is we make it easier to love technology, so that you can experience the future no matter who you are. Apple has done an amazing job in creating products that take the most complicated of technology and deliver it so that anyone can use it. People criticize Apple for not being that leading edge of technology saying they just copy. But they don’t get what Apple is about. Whereas every other geeky computer company starts with the technology and forces consumers to figure it out, Apple takes that same technology and makes it so simple–whether that’s the iPhone iPad or the Mac which have made technology accessible for anyone. Apple knows how to tell their story, starting with the launch meeting–last week’s iPad Mini launch was covered for days in the mainstream media. You could even watch it live on-line. Apple has made great ads over the years, but they know how to work the media–whether that’s on CNN, technology magazines or through social media such as Twitter and Facebook. Apple manages the Brand Experience to perfection–starting with the excitement of launches to the helpfulness of the genius bar to the out-of-box start-up of any of the Apple products. As much excitement as Apple generates, they always seem to over-deliver. Look how giddy people get over their iPhones and iPads. All these contribute to the Love for the Apple brand and generates a loyal following.

 

Using the Love to Generate Power

The 12 forces of a Beloved Brand map out how a beloved brand can leverage the power generated from being loved.

 

A Beloved Brand with a loyal group of followers has so much more power–starting with a power over the very consumers that love them. These consumers feel more than they think–they are e-rational responding to emotional cues in the brand. They’ll pay a premium, line up in the rain for new products and follow the brand to new categories. Look at the power Starbucks has with their base of consumers, making their Starbucks moment one of their favorite rituals of the day and how consumers have now added sandwiches and wraps to those rituals. All day long, Starbucks has a line up of people ready for one of their favorite moments of their day.

Using Porter’s 5 forces, we can see that the love also gives Beloved Brands power over channels, substitutes, new entrants, or suppliers. People rather switch stores than switch brands. Apple has even created their own stores, which generate the highest sales per square foot of any retailer. These brand fans are outspoken against competitors and suppliers will do what it takes to be part of the brand. In Apple’s case, Intel has given them the lead on new chip technology.

Beloved Brands have a power over employees that want to be part of the brand and the culture of the organization that all these brand fans are proud to project. People at Starbucks love working there and wear that green apron with a sense of pride. Brand fans know the culture on day 1 and do what it takes to preserve it.

Beloved Brands have a power over the media whether that’s paid, earned, social or search media. Apple generates over a billion dollars of free media via the mainstream media and social media. Competitors complain about Apple getting a positive media bias–they are right, they do. Even for paid media,beloved brands get better placement, cheaper rates and they’ll be the first call for an Integration or big event such as the Super Bowl or the Olympics. Nike did such a great job with social media during the London Olympics that people thought they were the main shoe sponsor–when it was Adidas.

Beloved Brands have a power over key influencers whether it’s doctors recommending Lipitor, restaurant critics giving a positive review for the most beloved restaurant in town or Best Buy sales people selling a Samsung TV. They each become fans of the brand and build emotion into their recommendation. They become more outspoken in their views of the brand. And finally beloved the Beloved Brand makes its way into conversation at the lunch table or on someone’s Facebook page. The brand fans are everywhere, ready to pounce, ready to defend and ready to say “hey, you should buy the iPhone”. The conversation comes with influence as crowds follow crowds. This conversation has a second power, which creates a badge value. People know it will generate a conversation and are so proud to show it off. After all, they are in the club. All twelve of these forces combine to generate further power for the brand.

Using the Love and Power to generate Profits

 

 

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.

Beloved Brands have momentum they can turn into share gains. Crowds draw crowds which spreads the base of the loyal consumers. Putting name Disney 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.

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.

The formula for a Beloved Brand is simple: Beloved = Power = Growth = Profit

Apple has been able to take all the love they generate with consumers and transform it into a power that they’ve been able to drive into their P&L, with 25-fold gains in revenue, increases in gross margins and can move all their ratios into the right space.  As a result, Apple is now the most valuable company in the world.

 

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.

 

Beloved Brands: Who are we?

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

Positioning 2016.112

 

 

Five Brand Resolutions For 2012

As we start 2012, here are some Brand Resolutions.

  1. Take a Walk in Your Consumers Shoes.  See the brand as they do.
  2. At every turn, ask yourself “DO I LOVE IT?”   Reject all work that is “just ok”.
  3. Delegate But Do Not Abdicate Ownership of your Brand.
  4. Create a Culture around your Brand—Brand should be everyone’s job, not just marketing.
  5. Once you create a Beloved Brand, you should run your branded business as a source of Power that helps drive Profit and Value.

#1:  Take a Walk in Your Consumers Shoes.  See the brand as they do.  It’s not just about doing research and finding consumer insights.  It’s about experiencing the brand as your consumer does.  Bringing the consumer into everything you do tightening the connection.   In 2012, be the spokesperson who represents the consumer to your team and watch the work get better.

At each stage of a the Brand Love Curve, you should challenge yourself with Amazing programs by asking “do I love this”  Reject all work that is “just ok” and push everyone to make the work better.  

#2:  At every turn, ask yourself “DO I LOVE IT?”    Reject all work that is “just ok”.  Moving your brand from indifferent to Like It is relatively easy:  good product, smart investment and doing the basics right.  But moving from “Like It” to “Love It” can be a herculean task.  If you want your consumer to love your brand, you have to love the work you do.  Look at the love Apple projects to its consumers through the magic of design, branding and marketing.  Never let something out that’s “just ok”.  If you’re indifferent, then you’re brand will be as well.   Challenge yourself in 2012 to lead yourself with passion equal to logic and find a way to love the work you do.

#3:  Delegate But Do Not Abdicate Ownership of your Brand.   In 2012, stop saying a)  “Oh well, the agency is the expert” b) “I never liked the brief” or c) “I never fully agreed with the Decision”.  These feel like a cop out, and it makes you look like a wimp.   Good brand leaders engage in the brand and lead it.   Sometimes it’s delegating to the team to keep them motivatated, but just as many, you have to challenge the direction to ensure the thinking is sound.   In 2012, stop acting like a Manager and start acting like a Brand Owner!

#4:  Create a Culture around your Brand—Brand should be everyone’s job, not just marketing.  There are hundreds and sometimes thousands of people impacted by the vision, mission and values you set out for the brand.   While most people will think the Brand Manager leads the brand, it’s the collective wisdom of all those who touch it.   From Sales People negotiating on the brands behalf to HR people who pick the right people to various Agencies, right down to the Editor who works just one day on your brand.  Motivate them, embrace them, challenge them, lead them, follow them and reward them.   Great people make great work and great work leads to great brands.   In 2012, challenge yourself to realize that you need more than just you living the brand, you need everyone living and breathing it.

#5:  Once you create a Beloved Brand, you should run your branded business as a source of Power that helps drive Profit and Value.  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.  But equally so, brand becomes a 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—it’s about being “unique”.  I think positioning is a means to driving growth and making money—it’s about being “powerful”.   The challenge for 2012 is to create a connection with your consumer that can be leveraged as a source of power for you to drive value and profit for your brand.

By driving a deeper emotional connection with your consumers, you can turn that connection into power, which can than be used to drive even further power and value for the brand.  


I really hope you try one of these out in 2012.   And I hope you see the difference.  

Happy New Year!