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Tag Archive: Profit

How to Express your Brand’s Big IDEA through Great Advertising

In an earlier article we big-idea-1talked about creating your Brand’s Big Idea and using it to drive every inch of your organization. The Big Idea should drive every activity and every function.  To read more on how to come up with the Big Idea and how to leverage it throughout, click on:  How your Brand’s Big Idea should drive every part of your Organization

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

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Brands are able to generate love for their brand when the consumer does connect with the brand. I wish everyone would stop debating what makes a great brand and realize that all five connectors matter: promise, strategy, story, innovation and experience. The first connector is the Brand Promise, which connects when the brand’s main Benefit matches up to the needs of consumers.  Once knowing that promise, everything else feeds off that Promise.  For Volvo the promise is Safety, for Apple it is Simplicity and FedEx it might be Reliability.  It’s important to align your Strategy and Brand Story pick the best ways to communicate the promise, and then aligning your Innovation and the Experience so that you deliver to the promise.  

Slide1Beloved 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.  That story telling should come from the Brand’s Advertising.  

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

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

Put another way, a good piece of communication can only move one body part at a time:  the head, the heart or the feet. Challenge yourself:  do you want to target the HEAD so you can get consumers to think differently about you, the HEART to try to connect emotionally or the FEET where you try to drive action.  

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

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

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

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

My hope is this will help you align your Advertising to the Brand’s Big Idea and manage it so whether you are looking to develop new Creative or Media Plans.  Remember, you can only move one body part at a time.  That choice should come from your strategy.  

Use your Brand’s Big Idea to Align the Advertising into the Market

 

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

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

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:

*Brand DNA first seen at Level5 Strategy Group

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How generating more Love for your brand will make You More Money

Love = Power = Profit

This message is for the Brand Leaders who many times stick to the straight rational management of a brand.  I grew up in the CPG Brand Management world.  And today I’m about to tell you a message that you likely hear all the time from your agency:  you should be more emotional with your brand!   I preface it by saying I’m one of you (client), not one of them (agency).  It’s very common among clients to think that way because we get frustrated that the agency doesn’t deliver what we want.  From my experience, many Brand Leaders still say:  “Give me a very straight forward ad that delivers the message we know will work”.  When an agency starts to push for us to be more emotional, we immediately think they are just trying to win an award.  

I guess I wished I listened to my agency.  But I just wish the agency went a layer deeper and connected going emotional with making more money and then they would have gotten my attention more. Hey Agencies:  Try telling your client this next time:  We should be more emotional because then you’ll make more money.  If you could generate more love for your brand, that would give you more power in the market and that power would  help you to drive more profits.

love = power = profit

Here’s the theory part on how the more love you create, the more power you command and the more money you make.  Brands sit somewhere on the hypothetical Brand Love curve, going from Indifferent to Like It to Love It and finally becoming a Beloved Brand.  Brands can connect with the consumer through 5 sources:  how strong is the promise, how good is their story, how focused is their strategy, how do they keep the brand fresh through innovation and how do they turn all this into an experience beyond the product.  It is the Brand’s connectivity and love that generates power for your brand–a power with the very consumers who love it, versus the channels who carry it, the competitors who fight you, possible new entrants trying to de-throne you, influencers who recommend you, suppliers, the employees and the media.   Having power enables your brand to generate higher profits in 8 ways, through price points, trading up/down, product costs, marketing costs, stealing other users, getting users to use more, entering new categories or creating new ways to use for the brand.

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There are 5 Ways to Generate more Love for your Brand
  1. The brand’s promise sets up the positioning, as you focus on a key target with one main benefit you offer.  Brands need to be 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.  Apple goes above just their product with a promise of simplicity that allows everyone to experience the future through technology.
  2. 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.  I love the Starbucks experience that has been created with coffee as the base, but they have gone so deeper to enable magical moments for their consumer.
  3. Brands also make focused strategic choices that start with identifying where the brand is on the Brand Love Curve going from Indifferent to Like It to Love It and all the way to Beloved status.   Marketing is not just activity, but rather focused activity–a focused target, a focused message, focused strategic choices, focused activities always 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.  Slide1Find those who are most motivated to buy what you do best.  I love how Volvo is so singularly focused on the safety message since 1954.   Yes they have leather seats and a great radio, but the message is always safety first.
  4. The most beloved brands have a freshness of innovation, staying one-step ahead of the consumers.  The idea of the brand helps acting as an internal beacon to help frame the R&D.  Every new product has to back that idea.  At Apple, every new product must deliver simplicity and at Volvo, the innovation must deliver the safety promise.
  5. Beloved brands can tell the brand story through great advertising in paid media, through earned media either in the mainstream press or through social media.  Beloved Brands use each of these media choices to connect with consumers and have a bit of magic to their work.  John Lewis out of the UK, is an employee-owned store growing double digits right through the recession because of their commitment behind amazing story telling around the simple message of the gift of giving.

There are 12 ways to turn the Love to Generate Power for your Brand

A brands connection between consumer is a power.  And that power translated itself into 12 forces of a power that a Beloved Brand wields, (show below).

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.

How to use the Love and Power to generate more Profits for your brand

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

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

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

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

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Beloved = Power = Growth = Profit

 

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

 

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.  gr bbi picWe believe the thinking that got you here, will not get you where you want to go.  Our 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.robertson@beloved-brands.com or follow on Twitter @grayrobertson1

 

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 help you uncover the love and power on your brand or ask how we can help train you to be a better brand leader.
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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.  

 

To read more about how to love what you do.:

 

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.robertson@beloved-brands.com or follow on Twitter @grayrobertson1

 

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.

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Is Social Media is the new “Invisible Hand”?

Brand LeadershipWell, today is a picture perfect weather day.  Sunny, which is rare, no humidity even rarer this spring, and likely 80 degrees.  It’s a sunday, a lazy one after a few tough weeks of work.  I feel like it’s a rejuvenation day. where we can shut down our brain.  That’s why I’ve picked the geekiest of topics to write about comparing an 18th century economist in Adam Smith with the modern-day world of Social Media.

The Original “Invisible Hand”

The concept of Adam’s Smith’s “Invisible Hand”  can be summarized to say that the individuals’ efforts to maximize their own gains in a free market benefits society, even if the ambitious have no benevolent intentions.  In economics, the “invisible hand” of the market is the term economists use to describe the self-regulating nature of the marketplace. This is a metaphor first coined by the economist Adam Smith. 529423_272713376142007_1735862437_nThe exact phrase is used just three times in his writings, but has come to capture his important claim that by trying to maximize their own gains in a free market, individual ambition benefits society, even if the ambitious have no benevolent intentions. My economics professor once said “economics is the practice of proving what happens in real life can also happen in theory”.  I love that line.  So how we as marketers spin the invisible hand is that we have to know that consumers are greedy, and if we satisfy that greed better than others, our brand will be more powerful and more profitable.

Consumers have the right to be greedy because they have money and options for how to spend that money.  Like Gordon Ghekko said “GREED IS GOOD”.  It’s this greed and the ability of some brands to satisfy that greed better than other brands which separates “likeable” brands from “beloved” brands.  As a marketer, I think greed helps you understand the needs of the customer, it forces you to rise and meet their expectations and it pushes you to beat your competitor for that almighty dollar the consumer could use on either you or them.  Fight for it.

Is Social Media the new “Invisible Hand”?

Over the last 5-10 years, Social Media has been the obvious marketing phenomena.  But do we fully understand it yet?  For most Brand Leaders, it still seems hit and miss.  I mean some of the leading cooler brands like Coke, Nike, Starbucks and Whole Foods are doing an amazing job.  But we see others not doing so well.  Arguably if Facebook hasn’t even figured out how to fully monetize itself, then how would Brand Leaders be able to figure it out.

The “invisible hand” of social media is actually hard to explain.  Just like it took Adam Smith 20= years of research, it might be the same for social media.  By no means am I a social media expert guru.  I’m as confused as the rest.  But what I do preach is the more love you can generate for your brand, the more power you can command and then you can turn that power in profit.Slide1

So my new message to every brand leader, if you want to be loved, you need to engage.  You need to be telling your story, your purpose, your passion and do so in a way that the consumer know you are genuine.  if you have no voice then you give control of you brand to the consumer.  We have seen so many bad cases like Motrin or Kitchen Aid to see what happens when a brand loses control.

Take someone like Whole Foods who has an amazing brand.  They use Twitter to perfection, offering constant recipes and engaging with their most loyal of consumers.  They don’t have any real off-line advertising.  All the energy is generated through on-line word of mouth.   Starbucks, a brand built on word of mouth seemed confused by social media a few years ago has now picked up tremendous steam the last year to where they are also a huge success story. And Apple does such an amazing job they get 2.5 billion of free media a year.

Brand Leaders View of Social Media

A few thoughts from one brand leader to another. Forget all the social media experts just for one minute.  We can approach them once we figure things out.  So here goes:

  1. Your media choice has to be influenced by your brand strategy.  This was true in 1920 when we only had print and signs.   It’s still true now that we have 3,000 media options.  You don’t just randomly select activities.  What other part of your life do you do that?   So then why would you do it in marketing.  Let the tactics match up to the strategy, not just do a bunch of random activities and then try to write a strategy to it.Slide1
  2. Media Plans should also map out the life of your consumer and the media choices be driven by where the consumer is, not where the media is.  A great day in the life analysis has always helped find where to interrupt your consumer with your message.   If you knew that the consumer was awake for 16 hours a day and sees 6,000 messages each day, that means we see a new message every 10 seconds.  Which 10 seconds do you think would be the best of the day for you?Slide1
  3. Don’t put out crap.  Please don’t. Please hire a professional to help you.  It seems people are in more of a rush than ever to put stuff out.  But sometimes when you go too fast, it takes longer.   Please do a strategic creative brief.  Give the creative people enough time to do great work.  If you are going to get into story telling, you should have a purpose driven strategy at the anchor.  You should really know why you come to work every day and once you do, bring that purpose into all your stories you tell.  The “why” is such a powerful message.
  4. Be Interesting, but equally you should be interested.  If you’re going to engage with consumers, don’t just talk about yourself.  Ask them questions that get them talking about themselves.   Instead of serving up what you do constantly, speak in the voice of the consumer and tell them what they get.   No one cares what you do until you care about what they get.
  5. You need to focus.  A brands resources are confined by money, time and people. That’s still true.  Social Media IS NOT free.  Because it takes time and it takes people resources to do it right.   You don’t have to be on Facebook because your nephew thinks you’re a loser.  You should be on it because it’s where your consumer is likely to be motivated the most to engage with your consumer.  Focus on those social media options that most make sense for your brand. 

Now, and only now should you go approach a social media “expert” who will help you figure out how to translate your brand strategy at the social media area, who will map out where your consumer is so you know where/when and how to interact with them.  Make sure you put out quality still.   Crap is always crap.  If you’re going to tell stories and engage, then make sure it’s from the heart.  Honestly means knowing your real purpose of why you chose this business and the struggles you went through.  And finally, I want you to focus.  I know I sound like a broken record.  But if you focus on every other part of your life, then why when it comes to marketing do you all of a sudden thing “it’s ok to cover everything”.   When the discipline of marketing is all about focus.

If you want your brand to be loved, then you have to be engaged in Social Media.  If you are not involved in the conversation about your brand, you’re giving up control to the pack.  And who knows what they’ll say.  

Social Media is more likely the “Invisible Voice” we can’t always hear, but we better start realizing it is there and engaging our own voice.
 

Follow me on Twitter at @grayrobertson1

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

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

 

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

Pick your Social Media vehicle and follow us by clicking on the icon below:

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

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

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What to do when your Brand is Stuck at “Like It”?

Don’t feel bad.  Most brands are at the Like It stage

You have been able to carve out a niche and be a chosen brand against a proliferation of brands in the category.    And you have good shares, moderate profits and most brand indicators are reasonably healthy.  It’s just that no one loves you.  There’s nothing wrong with being a Liked brand.   All the power to you.  But just know that you might be leaving good money on the table.  

Beloved = Power = Growth = 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.

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 Like It Stage

At the Like It stage, the funnel is fairly strong at the top but quickly narrows at purchase and has a very weak bottom part of the brand funnel.  As people see your brand as a good rational choice, they might consider it and use it, but it lacks separation from the other brands and it’s missing that emotional connection.  Brands stuck here usually focus on what they do (features) and not what the consumer wants (benefits)  In the funnel, you’ll see pretty strong awareness and consideration but you’ll lose out at the purchase stage and have no real repeat or loyalty at all.  You’ll notice fairly high trade spend just so you can keep your share going–and you use price as a weapon to close the deal.  The best strategy here is to begin to Separate Your Brand from the clutter of the market, by establishing a brand promise based on benefits–rational and emotional.  A brand like Dove was at the Like It stage back in the 1990s.  Only when they could shift from talking about themselves to talking about the consumers would they be able to establish more love for their brand.  

Consumers see your brand as a functional and rational choice they make.   They tried it and it makes sense so they buy it, use it and they do enjoy it.  It meets a basic need they have.  They likely prefer it versus another brand, but they think it is better, cheaper or easier to use.  Or your mom told you to use it.  But, consumers don’t have much of an emotional connection or feeling about the brand.     Where Indifferent is really bad, you’re ordinary, which is just a little bit better.  Overall, consumers see you brand in the “it will do” space.

The Five Sources of Brand Love

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.

Slide1
Why is your Brand stuck at the Like It Stage:

If your brand is stuck at Like It, look to the five sources of love to see if you have a weakness.  

  1. Protective Brand Leaders means Caution:  While many of these brands at the Like It are very successful brands, they get stuck because of overly conservative and fearful Brand Managers, who pick middle of the road strategies and execute “ok” ideas.  They do a bad job at either telling the story or launching new products.  On top of this, Brand Managers who convince themselves that “we stay conservative because it’s a low-interest category” should be removed.   Low interest category means you need even more to captivate the consumer.
  2. We are rational thinking Marketers:  Those marketers that believe they are strictly rational are inhibiting their brands.  The brand managers get all jazzed on claims, comparatives, product demonstration and doctor recommended that they forget about the emotional side of the purchase decision.   Claims need to be twisted into benefits—both rational and emotional benefits.   Consumers don’t care about what you do until you care about what they need.  Great marketers find that balance of the science and art of the brand.   Ordinary marketers get stuck with the rational only.  The promise stays very rational, and the execution of the brand story becomes rather bland.  
  3. New Brand with Momentum:  As a new brand, you might not have found a way to use a unique brand promise to separate yourself from other competitors.  Stage 2 of a new brand innovation is ready to expand from the early adopters to the masses.   The new brand begins to differentiate itself in a logical way to separate themselves from the proliferation of copycat competitors.   Consumers start to go separate ways as well.  Retailers might even back one brand over another.  Throughout the battle, the brand carves out a base of consumers.
  4. There’s a Major Leak:  If you look at the brand buying system, you’ll start to see a major leak at some point where you keep losing customers.  Most brands have some natural flaw—whether it’s the concept, the product, taste profile ease of use or customer service.   Without analyzing and addressing the leak, the brand gets stuck.  People like it, but refuse to love it. That leak could be in the freshness or experience stage.  
  5. Brand changes their Mind every year:  Brands really exist because of the consistency of the promise.  When the promise and the delivery of the promise changes every year it’s hard to really connect with what the brand is all about.  A brand like Wendy’s has changed their advertising message every year over the past 10 years.  The only consumers remaining are those who like their burgers, not the brand.  The story never gets told in a consistent manner that delivers the brand promise.  It fails to catch on, so instead of just fixing the communication the brand also changes the brand promise.  
  6. Positional Power–who needs Love:  there are brands that have captured a strong positional power, whether it`s a unique technology or distribution channel or even value pricing advantage.  Brands like Microsoft or Wal-Mart or even many of the pharmaceuticals products don`t see value in the idea of being loved.   The problem is when you lose the positional power, you lose your customer base completely.  The brand with just positional power becomes complacent and lazy–with a culture that does not create a brand experience that surpasses the promise. 
  7. Brands who capture Love, but no Life Ritual:  There are brands that quickly capture the imagination but somehow fail to capture a routine embedded in the consumers’ life, usually due to some flaw.   Whether it’s Krispy Kreme, Pringles or even Cold Stone, there’s something inherent in the brand’s format or weakness that holds it back and it stays stuck at Loved but just not often enough.  So, you forget you love them.  The strategy of linking the brand’s promise to the other connection points of the brand.  
Indicators that you’re at the Like It Stage
  • Low Conversion to Sales.   While the brand looks healthy in terms of awareness and equity scores, the brand is successful in becoming part of the consumer’s consideration set, but it keeps losing out to the competition as the consumer goes to the purchase stage.  It usually requires a higher trade spend to close that sale which cuts price and margins.
  • Brand Doesn’t Feel Different:  A great advertising tracking score to watch is “made the brand seem different” which helps to separate itself from the pack, many times speaking to the emotional part of the messaging.
  • Stagnant Shares:  Your brand team is happy when they hold onto their share, content to grow with the category.
  • High Private Label Sales:    If you only focus on the ingredients and the rational features of the product, the consumer will start to figure out they get the same thing with the private label and the share starts to creep up to 20% and higher.
Why Would you want to get to the Love It Stage

As you become more loved, you can use that love consumers have for your brand to drive more power for your brand.  That power may be against retailers, other competitors, suppliers, media and key influencers.   As well as a power over the very consumers that love your brand.  With more power, a more loved Brand has 8 ways it can add profit. 

Slide1

In terms of pricing, you can charge premiums and any change in pricing is relatively more Inelastic.  Loyal consumers, weakened channels pay premiums, and trading up where offered.  More engaged employees deliver better experience—even more premiums.  This gives your brand an opportunity to drive higher margins.

With costs, a more loved brand becomes more Efficient and Powerful.  You’ll be able to achieve Economies of scale.  Suppliers cut costs due to volume & wanting brand in portfolio. Efficient media spend, free media through search, earned and social. Gov’t willingly subsidize. Partners give favorable terms.  This gives your brand lower costs–both in terms of product costs and marketing costs.  

A more loved brand can drive market share by pushing the Momentum and finding that Tipping Point.  Crowds draw crowds.  Power of media (search + social + earned) keeps brand in the conversation with heavy influence. Competitors can’t respond to the momentum.  You can steal share from weakened competitors who have no love, or get current users to use even more.  

A more loved brand can enter new markets.  Loyalists Will Follow Wherever:  Loyal users will follow where brand goes, and doors will open to new ventures. The idea of brand no longer tied to product, but to how brand makes you feel. 

As the brand is more loved, the P&L statement looks a lot stronger–higher markets, lower costs, higher share and new market entries all add up to much higher profitability.  It’s worth finding that love.  

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

So be content with being Liked.  But just realize that you’re leaving profits behind for someone else to capture.  

If you are stuck at Like It, then you are leaving money on the table

 

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. Consumer Insights:  To get richer depth on the consumer, read the following story by clicking on the hyper link:  Everything Starts and Ends with the Consumer in Mind

 

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

 

Pick your Social Media vehicle and follow us by clicking on the icon below

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

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

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A Beloved Brand commands the Power of a Monopoly

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.  FormulaIt’s this LOVE that helps drive POWER for your brand: power versus competitors, versus customers, versus suppliers and even versus the same consumers you’re connected with.  With added power, you will be able to drive stronger PROFITS.  For a Beloved Brand, prices are inelastic and you can trade consumers up to new premium options.  You can drive share and move to new markets with your loyal consumers following.  And you can put pressure on costs.  All these drive added profitability for the Beloved Brand.   LOVE = POWER = PROFITS

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 1) the brand promise 2) the strategic choices you make 3) the brand’s ability to tell their story 4) the freshness of the product or service and 5) 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.

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.

Power over consumers:  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.

Power over Porter’s 5 Forces:  We can see that the love also gives Beloved Brands power over channels, substitutes, new entrants, or suppliers.   With a beloved brand, there is power over channels because consumers would rather switch stores than switch brands.  Apple has even created their own stores, which generate the highest sales per square foot of any retailer.  And even with their own stores, Best Buy still gives Apple preferential treatment with a ‘store-in-store’ concept.  With outspoken fans, they’ll even fight on behalf of the brand against competitors.  Competitors can duplicate the product, but they can’t get close to duplicating the emotional connection.  Beloved Brands even have power vs Suppliers, who want the beloved brand on their roster.   Many suppliers will cut their prices, offer extras and first right of refusal on new technologies. In Apple’s case, Intel has given them the lead on new chip technology two years before they gave them to PC ultrabooks, giving them a huge competitive advantage.  With these powers, it makes it hard for new entrants to break through.

Power over Employees:  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 that get hired into the system, know the culture on day 1 and will do what it takes to preserve it.  Starbucks employees ooze the brand and honestly from a cultural view, their interactions make the difference in the experience of the brand.  Employees have their regulars, know their name and their drink.  It’s no longer just the coffee.  It’s your escape and your comfort zone.

Power over the Media:  Beloved Brands have a power over the Four types of Media:  1) Paid 2) Earned 3) Social and 4) Search.  Beloved Brands have a much more efficient media buy–lower GRPs needed to break through and a lower Ad Spend/Sales is needed to keep share strong.  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.  Beloved Brands have figured out the earned media, with launch events, press releases and executive story lines that seep into the mainstream press.  Competitors complain about Apple getting a positive media bias–they are right, they do.  As brands are still figuring out social media, it’s the most loved brands that are doing it right, whether it’s Coke, Nike or Apple.  Are they smarter?   Maybe.  But the beloved Brands have such a huge advantage because people want to connect socially, want to share and want to influence.   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.  Lumping earned, social and search together as ‘free’ media, Apple generates over a billion dollars of free media via the mainstream media and social media.

Power over Influencers:  Beloved Brands have a power over key influencers whether it’s doctors recommending a certain drug, restaurant critics giving a positive review for the most beloved restaurant in town  or electronics sales people selling a beloved TV. Each of the influencers 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 12 forces combine to generate Power for the Brand, that matches that of a Monopoly.

 

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. Consumer Insights:  To get richer depth on the consumer, read the following story by clicking on the hyper link:  Everything Starts and Ends with the Consumer in Mind

 

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

Pick your Social Media vehicle and follow us by clicking on the icon below

linkedin-groups-large             images-1              facebook-logo

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

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

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Finance 101 for Brand Leaders

Brand LeadershipTo be a great Brand Leader, you have to be good at running the P&L.  Even as you are launching new products, creating new advertising or writing a great brand plan, you have to have profit front and center in everything you do.  Yet, there are far too many Brand Leaders who can’t run the P&L.  These Brand Leaders hit the mid-point of their career and then we realize that they aren’t very good with numbers and all of a sudden, a fast track career for the super star Brand Manager completely stalls.   As you’re looking up to the director level jobs, challenge yourself to get better with finance.

Looking at the P&L

Here’s my Finance 101 that can help  simplify your role with the P&L.  This is meant for the Brand Manager level who is aspiring to continuing to move up.  But regardless of level, if you secretly are weak in the P&L area, this might help you.  

Slide1While it’s important to learn every line of the P&L, where Brand Leaders can have the biggest impact is on the Net Sales, the Gross Margin and the Contribution Margin.  

The Net Sales line is simply Gross Sales minus the Trade Spend.  Some income statements have brought the trade spend up to the sales line, while others have left it down in the cost line.   Check with your company’s or country’s way of doing it.  In many industries, the trade terms are dictated by the channels.  While I would want to say the more Beloved Brands have a power over the channels, many times they still aren’t able to turn that power into lowering the trade spend.  If the trade spend is out of your control, you should be working with sales to ensure you are maximizing the value in programs that you are getting for the trade spend.  

Net Sales is the Unit Sales times Net Price.  For unit sales, you’ll have to either drive the market share or enter new markets.   That’s where the marketing programs you leverage drive faster growth relative to the spend.  And for price, you can increase price or get consumers to trade up to a premium price within your portfolio.  The overall brand image you drive will usually be one of the biggest impacts on price.  The more love you create for the brand, the more inelastic the price. 

Gross Margin is Net Sales minus Cost of Goods.  Just like above this can be impacted by how high of a price premium you can drive for the brand, or whether you can lower your Cost of Goods without impacting the quality of the product.  As a Brand Manager, this becomes your primary focus for “profit” as you feel the below the line costs are out of you control, so you don’t pay much attention to them.   However, as you get up to the Director or VP level, you get involved in discussions about marketing spend, R&D and the goals for the bottom line contribution margin levels.  This is where your strength or weakness in running the P&L begins to really show up.  

4 Ways to Drive the P&L

Looking at the above P&L lines, in a slightly different way you really have 4 different areas that you can impact the Profit:

    1. With Price, you can increase/decrease the price or you can get consumers to trade up to a premium line or down to a value line.   
    2. When looking at Costs, you’re either driving the product costs or the marketing costs.  You’re trying to minimize the costs without impacting the brand or the impact on the brand.
    3. Driving the Market Share is a focus on either stealing other users or getting your current users to use more. 
    4. The Market Size is all about entering new categories or finding new uses for your current brand.  

#1.  Using Price as a weapon to drive brand value.  It can be a price change, up or down, or it could be trying to get consumers to trade up or down.

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

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

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

When looking at Price Increases, here’s a formula to help get you started on your analysis for gaining approval.  

Slide1

Beloved Brands seem more capable at driving profits through pricing, but they also are careful to ensure the premium does not become excessive to create backlash. There are a few watch outs around trying to trade up or down: Premium skus, can feel orphaned at retail world—on the shelf or missing ads or displays. Managing multiple price levels can be difficult—what to support, price differences etc. For all the effort you go to, make sure your margins stay consistently strong through the trading up or down. Be careful that you don’t lose focus on your core business. Can’t be all things to everyone. The final concern is what does it do your Brand’s image, especially risky when trading downward.

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

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

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

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

Here’s a simple margin calculation to get you going:

Slide1Always be in an ROI mindset: Manage your marketing costs as though every DOLLAR has to efficiently drive sales. Realize that short-term cuts can carry longer term impact. Competitive reaction can influence the impact of investment stance–like a price change, your competitor might over-react to your increases in spending.

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

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

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

  • Get Current Users to Use More: When there is an opportunity to turn loyal users into creating a potential routine. Changing behaviours is more difficult than enticing trial. It’s a good strategy to use, when your there’s real benefit to your consumer using more. It’s hard to just get them to use more without a real reason.

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

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

  • Find New Users: When there is an untapped or under-served need. There could be a significant changing demographic that impacts your base. Or you are able to translate/transfer your reputation to a new user group. There should be something within your product/brand that helps fuel the brand post trial. Trial without repeat, means you’ll get the spike but then bust. Substantial investment required. Don’t let it distract from protecting the base loyal users.
  • Create New Uses: Format Line Extensions that take your experience or name elsewhere. Able to leverage same benefit in convenient “on the go” offering. Make sure current brand is in order before you divert attention, funding and focus on expansion area. Investment needed, could divert from spend on base business. Be careful because the legendary stories (Arm and Hammer) don’t come along as much as we hope.

As you look to either grow by share or new categories the two crucial calculations for you are Compound Annual Growth Rate (CAGR) and Return on Investment (ROI) 

For CAGR, here is a calculation tool:

Slide1

And for ROI,

Slide1

Show Your Work:  Just like in grade school where you get extra points for showing your work, the same thing goes when taking senior leaders through your assumptions.  

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

 

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

 

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  1. 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
  2. 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
  3. Brand Management:  A look at how to run a Brand, starting with the Brand DNA, Strategy, Planning, Managing and Leading the Brand.  To read more, follow this hyper link:  Brand Management 

 

To see How to Run a Brand, click below:

 

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

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

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

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How to ask Big Questions that get to Big Strategic Answers

Slide1In our marketing careers, we start off in a doing-role and get completely swamped in execution.   We think “if only I had a higher level job, I’d actually have time to think, rather than just do”.   The problem for many of us, is not only do we get good at the doing, we get so good that we can’t get past it and we never end getting to the real strategic thinking.  We just become a do-er at a higher level and drive everyone crazy beneath us.

When I talk to many of the senior Brand Leaders, at the VP and Director level, I hear 3 common things:

  1. “I am too busy and I have no time for strategic thinking”
  2. “My team lacks the experience so I have to jump in resolve issues myself”
  3. “If I didn’t jump in, it just wouldn’t get done right”
Are you really Strategic?

Everyone out there claims to be a strategic thinker, but I would guess that really only half of us really are strategic.

  • 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.   This is PLANNING!
  • 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  then doing nothing.   They opt for action over thinking.    They are impulsive and doers who see tasks.  They are frustrated by strategic thinkers.  This is EXECUTING!

As a senior Brand Leader, it is easy to get so wrapped up in the details of the execution that you’re making the non-strategic decisions on behalf of the team.   You have just really become the “senior” Senior Brand Manager that really annoys your team.   Instead of providing the team with a vision, challenging on strategy or teaching the team, you’re telling them to make the flash bigger and change the sell sheet to purple.

If you speak in a telling voice, you leave your team with one answer:  YES.   If you speak in an asking voice you leave your team with 3 answers:  YES, NO or let me dig in a bit more and find out.  

Instead of telling people what to do, why not challenge yourself to sit back slightly and ask the really tough challenging questions.  You’ll know you’ve asked a really tough question when you don’t even know the answer.   There’s nothing wrong with stumping the team, because you’re even stumping yourself in the process.

So What are the Tough Questions to Ask?  

As your team might be at the beginning stage of digging in on analysis, here’s are 10 great questions to ask your team:

  1. How do we make money?   This focuses them on figuring out the pathway from the activities on the brand to the results in the market and the profitability on the balance sheets.   The most beloved brands use the consumer connection to create a source of power that they can use on various areas of the market and then use that power to drive the brand’s profitability.   Your team should be able to map this out and use it as a roadmap for the brand’s future.   If you’re not focused on power and profit, then you’re not strategic.  
  2. What is it that makes us different?  USP 2.0The best of brands are either better, different or cheaper.   Or not around for very long.   If you can’t answer this question, then how do you expect your consumer to be able to answer.   You’re likely just a me-too brand and once that’s discovered, you’ll be on a downward spiral.   
  3. Why are we here?  How did we get here?  Where could we be?    It’s great for getting to the vision, without writing the word “vision” up on the board and saying to everyone “ok go”.  That gets you no-where.   Pick a magical date of 5-10 years from now and say “if you got everything you wanted, what would the brand look like in 5 years?”  Push them hard on the where to, because that’s when the brand starts to transform itself.  
  4. What’s holding us back from being where we want to be?   Once you get the team focused on the vision of 5 to 10 years from now.  This allows you to start attacking your brand, to find the inhibitors that you can try to unleash or course correct.  
  5. Which would be easier:   getting our most loyal users to use more, moving up those who have already bought into the brand to start using regularly or getting a new user?    This is pushing them towards a strategic choice, whether to focus on base users or new users–penetration or usage frequency.  It also should start to force you to look at your brand funnel to see where you have strength and where you have gaps.   Every brand should be utilizing a brand funnel.   It’s almost negligent to not use one.   Slide1That’s like working out at the gym and not knowing your blood pressure or cholesterol scores.  When you layer in What would make us more Money, you might start to see the ROI impact of the same decision.  
  6. What would our consumer say about our brand?  This shifts the focus of the discussion from a myopic brand focus into thinking about the consumer first.   Everything you do should be start and end with the consumer in mind.  After all, if you figure out how to win over the consumer, you become more powerfully connected and can drive greater growth and profits through that power   
  7. For Strategy, what choices are on the table that helps you gain a foothold into the market but also helps to drive the long-term win? A test for any great strategy is whether it has all 4 key elements.   FOCUS:  all your energy to a particular strategic point or purpose.  Match up your brand assets to pressure points you can break through, maximizing your limited resources—either financial resources or effort.   Pick a tight target market of those who can love you, and pick a unique position that you can stand behind and win.   You want that EARLY WIN, to kick-start of some momentum. Early Wins are about slicing off parts of the business or population where you can build further. Find that connection with your consumer—moving them along the love curve.  LEVERAGE everything to gain positional advantage or power that helps exert even greater pressure and gains the tipping point of the business that helps lead to something bigger.  Your brand finds a way to turn the consumer connectivity into a source of power the brand can leverage.Seeing beyond the early win, there has to be a GATEWAY point, which is the entrance or a means of access to something even bigger.   It could be getting to the masses, changing opinions or behaviours.  Return on Investment or Effort, where you can translate all the power you’ve earned into profits and brand value.
  8. For any choice related to brand positioning and go-to-market, whether it’s target market, main message, media choices or activities, force their hand by asking a few questions to ask:  1) which one gets us on our way to vision faster?    2) which one helps us grow faster  3) which one makes us more money?   Always push your team to focus by making them use the word “or” instead of “and”. If you think you are a strategic decision maker, then whenever you choose both, you’ve failed.   When you go into a casino, and put one chip on each of the 38 choices on the roulette wheel, it might be fun, but you’ll never win.    By targeting everyone then you’re not making the choice, you’re just depleting your resources.   And you run the risk that no consumer ever says “wow, that brand is really speaking to me.”
  9. When seeing new creative execution of anything, ask “DO YOU LOVE IT?” and then watch their eyes.  Do you think our costumer will love it?  Is this connected to personal pride or are they just passing the buck filling in forms.  not okGetting something to market, big or small takes a herculean effort to overcome obstacles.   I want to know on day 1, will they fight for it?   A great idea that falls on the vine is worth less than an OK idea executed with passion.  If we don’t love the work we do, then how do we expect the consumer to love the brand?    OK is the enemy of greatness.  
  10. Why do you want to spend this money?    If you are about to spend millions of dollars, I want to hear the reason why you think it’s crucial, why it will pay back even greater than the resources we put forward.   Understanding and aligning to one key objective allows everyone to focus on the outcome.   

And finally, the most important question of all:  What do your instincts think we should do?   And then listen.  You might be surprised by the good thinking on your team and you might be surprised that their answer is better than the one that is in your head.  

This might be most obvious of questions, but how many times per week do you ask this?   Imagine the responses you might get from that.  Imagine how motivated your team would be.  As a leader, I want you to start exhibiting more patience.  You have to learn the art of questioning that sets up the listening.  If you learn this skill you’ll start to realize that you can still control the direction of the brand through questions, even more than through direction.  On the plus side, you’ll have a fully engaged, motivated team that’s ready to deliver.

As a Brand Leader at the executive level, you should walk into every meeting telling yourself “I know less about this than anyone in the room” and that puts you in the most powerful position to ask the right strategic questions and listen for the right strategic answers.

The bigger the question, the bigger the answer.

To help improve your strategic thinking, read the following presentation:

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

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

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:

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How Beloved Brands Fall From Grace

Very few Beloved Brands stay on top for long. 

Beloved Brands like Disney, McDonald’s and Coke have stayed at the top across many generations of consumers helping to deepen their connectivity and solidifying their power as a brand.  But these brands are rare.  Instead, most of the brands that reach beloved status stay at the top for one generation at best.  These brands get to the top and think they are invincible. They fail to recognize the decline before it’s too late because as they are in denial of the underlying problems which could be a result of fear, arrogance, not listening or making the wrong choices.  They fail to attack themselves which opens the door to an attack from others.

The 5 ways that Beloved Brands fall from grace
  1. Beloved Brands forget who they are and what it was that made them famous.  Benetton is great example of a brand who forgot what made them famous.   In 1990, Benetton could do no wrong.  Business schools wrote case studies of their success and Ad Agencies held them up as the brand of envy for all clients to learn from.  They had shock-value advertising campaigns that people talked about at the lunch table and there was a Benetton store in every mall.  Their colorful and stylish fashion was the desire of the core teenage crowd.  Benetton’s brand promise was providing European fashions at an affordable price.  But the arrogance of the “can do no wrong” brand quickly faded.  While they were so busy creating shock-value advertising and arrogantly talking of their brand as it were art itself they forgot about the fashion part of the business.  Benetton started to look like a hollow promise of cool ads with not-so-cool clothing.  Also, Benetton expanded so broadly and so fast, they opted for franchises instead of maintaining ownership over the distribution.  The managing of the large franchise network became a drain on the company and there’s a belief that not being close to the consumers in the stores hurt their ability to listen to what teenagers were saying and wearing.  With a fickle teenage target, Benetton quickly went from a must-have to a has-been brand.
  2. Struggle to keep up with the times.   The Beloved Brands of General Motors–Cadillac, Oldsmobile and Corvette–not only peaked in the 1970′s, but found themselves stuck their as well.  The 70′s were one of those decades with such a distinct look with Disco, perms, gold chains and the 3-piece suit, that most things connected to the 70′s were completely rejected in the 1980′s.  A brand like Cadillac was the ultimate luxury brand, so revered that people would describe the best brand of any category as “it’s the Cadillac of….” but that has since been replaced by “it’s the Mercedes of…..”   Cadillac’s unit sales peaked in 1973 just as gas prices began to rise and the look of those huge gas-guzzlers. It no longer fit the desires of the Yuppies of the 1980′s who were now opting for sleeker luxury with Mercedes and BMW.  The Corvette brand had done a nice job transitioning from the 50′s of James Dean through the 60′s and 70′s, always remaining as an icon of sophisticated American cool.   But Corvette failed to update their 1970′s brand look until 1984, which was too late to escape the stigma and giggles of those who looked at the drivers as having a “mid-life crisis”.  Consumers of the 80′s were now driving smaller and sleeker sports cars like the RX7, 280Z and later on the Miata.  And finally, the Oldsmobile was a classic American family car who sales soared through the 1970′s.  By the mid-80′s, in an effort to try to capture a new generation, they used the infamous tagline of “Not your father’s Oldsmobile”  which only re-enforced that it WAS your father’s Oldsmobile.  I believe that the near-bankruptcy of General Motors can be traced back to the 1970′s when the brands peaked and yet felt stuck in a time-warp forever.  GM failed to keep up in design, and failed to change as gas prices rose dramatically.  They found themselves attacked on the lower end from the Japanese cars like Toyota and Honda and at the higher end from German brands like Mercedes, Porsche, Audi and BMW.
  3. They make the wrong strategic choices because they think of themselves before the consumer.   Gap Clothing got greedy and forgot what made them great: trendy American fashion for a stylish generation at a reasonable price. And who is the spokesperson for fashion:  the coolest people on earth:  TEENAGERS of course.   Every generation of Teens believes they are the most important people on earth and they want products that speak for their generation.  It’s all about them.   They influence Music, Movies, TV Shows and Clothing and believe each has to speak directly to them and for them.   Imagine being 15 in the late 90′s, you’re walking in your favorite mall, trying to be as cool as can be, heading for your favorite clothing store.  All of a sudden, you look up and your favorite clothing brand is now flanked by BABY GAP on one side and GAP MATERNITY on the other side.   How could this brand speak for the teen generation, when your 2-year-old nephews are wearing a mini-version of what you’re wearing or your pregnant Aunt is wearing the stretchy version?  GAP made the mistake of putting their name on all their line extensions, which most fans of Master Brands thinks strengthens the brand but it actually runs the risk of actually weakening the brand.  GAP also forgot about feeding that desire for leading edge, trendy clothing–the whole reason for that “8 seasons” rotation of inventory.  Go into a GAP store this year, and you’ll realize how boring and drab the products have become.  No teenager today loves GAP or even thinks much about GAP.  They are totally indifferent.   Fast forward to 2011, GAP Clothing sales are down 19% this year and down over 25% since the peak of 2005.  And they have just announced the closing of 200 stores–which will continue the downward spiral.
  4. If you are Afraid to attack yourself, expect an attack from someone else.   Kodak was such a revered brand for so long, but their refusal to attack themselves opened up so many windows of attack from others.  The first attack came in the traditional film business from low-priced Fuji film.   Kodak did nothing to stop Fuji for fear of eroding their margin, letting Fuji gain a 17% share of the film market.   The second attack came from new entrants into the digital camera market before Kodak was ready to enter.    Even though Kodak had the first digital camera as early as 1975,  the product was dropped internally for fear it would threaten Kodak’s photographic film business.   In 1990 Kodak finally laid out a plan to enter the digital camera market but took another decade to enter the market.  The world was changing, yet Kodak executives still could not fathom a world without traditional film which gave them little incentive to deviate into the digital camera space.  The third attack came once Kodak entered the digital camera space.  Kodak entered at the high-end of the market and for a brief moment was the #1 digital camera.  But Kodak failed to recognize how quickly the digital camera market would become commoditized.   They did cut their prices, but couldn’t lower their cost of goods fast enough to keep up with the Japanese manufacturers.  Kodak was losing $60 for every camera sold at the same time as their traditional film business was dying. The result: Bankruptcy.  Interestingly enough, at the time of their bankruptcy, Kodak released 1000′s of patents for sale.  It’s not a question of innovation that killed Kodak, it’s a refusal to act on the right innovation in a timely fashion. They failed to attack themselves only to let others attack and ultimately destroy them.
  5. Lose focus and let the experience slide.   A recent case study in a brand experience not living up to expectations is the Blackberry.  It’s a classic case where they grabbed early share as the category innovator and then forgot to keep making improvements to the overall experience.  The list of problems for blackberry is long: major service outages, keyboard that sticks, small screen size, bad cameras, poor quality speaker-phone, slow internet browser and when the screen freezes you have to take the battery out and re-boot.  In my last few months as an angry blackberry user, I was taking the battery out 5x a day.  The leaders at RIM believed they were invincible almost laughing when Apple launched the iPhone.  These guys would next launch a tablet without any Apps on it.  Oh man!  What I think Blackberry’s biggest failure is not mapping out the customer experience and attacking every possible weakness.   It’s a classic case of technology first and then thrust it into the marketplace and hope it sells.  The blackberry experience has just not kept pace with Android and Apple.  As a result, the RIM share price is down 95% since its peak of 2008.
Maintaining Beloved Brand Status
  1. Keep the brand’s promise front and center on who you are.  You need to be either better, different or cheaper.   Challenge yourself to stay relevant, simple and compelling.
  2. Keep challenging the status quo to maintain an experience that over-delivers the promise.  Create a culture that attacks the brand’s weaknesses and fixes them before the competition can attack.  With a Beloved Brand, the culture and brand become one.
  3. Make focused strategic choices that starts with being honest with yourself.  Find a way to listen to your consumers and stay ahead of the trends.  Watch for dramatic shifts because they can really open a door for a competitor.  It’s easier said than done, but don’t be afraid to attack yourself even if it means cannibalizing your current business.  A good defense starts with a good offense.
  4. The most beloved brands have a freshness of innovation, staying one-step ahead of the consumers.  The idea of the brand helps acting as an internal beacon to help frame the R&D.  Every new product has to back that idea. .
  5. Keep the brand story clear and simple through great advertising in paid media, but also through earned media either in the mainstream press or through social media.

 

Here’s a presentation on what makes a Beloved Brand:

 

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.  gr bbi picWe believe the thinking that got you here, will not get you where you want to go.  Our 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.robertson@beloved-brands.com or follow on Twitter @grayrobertson1

 

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 run a workshop to find your brand positioning or ask how we can help train you to be a better brand leader.
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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.

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
  1. The brand’s promise sets up the positioning, as you focus on a key target with one main benefit you offer.  Brands need to be 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.
  2. 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.
  3. Brands also make focused strategic choices that start with identifying where the brand is on the Brand Love Curve going from Indifferent to Like It to Love It and all the way to Beloved status.   Marketing is not just activity, but rather focused activity–based on strategy with an ROI mindset.  Where you are on the curve might help you make strategic and tactical choices such as media, innovation and service levels.
  4. The most beloved brands have a freshness of innovation, staying one-step ahead of the consumers.  The idea of the brand helps acting as an internal beacon to help frame the R&D.  Every new product has to back that idea.  At Apple, every new product must deliver simplicity and at Volvo, it must focus on safety.  .
  5. Beloved brands can tell the brand story through great advertising in paid media, through earned media either in the mainstream press or through social media.  Beloved Brands use each of these media choices to connect with consumers and have a bit of magic to their work.

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

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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.

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How loved is your brand?

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

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

 

 

 

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