Did Apple just break the Steve Jobs golden rule?

Innovation is not easy. We all look for those blue ocean ideas and game-changers that no one else can see. Most times when see them, we get scared. They look so different. Will they work?  Who knows. Incremental Innovation is easy. It is comfortable, similar to what we did last year, so let’s pull the trigger because we know it will work. The original iPhone was a game-changer. It looked so different, that even the main competitor laughed about it. (There is video footage somewhere).

The beauty of the original iPhone is that it was intuitive in design, simple enough for anyone to use.  From a technical view, it wasn’t innovative at all. From the consumer view, it was the most innovative product of the century. It was merely a copy-cat product that was bundled together in a much smarter consumer way. While everyone else in the category was inventing cool things and spending lots of time figuring out how this would work with consumers, Apple figured out what the consumer wanted and then went and collected and bundled all the current technologies into one simple phone.

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This statement is what made Steve Jobs a Marketer among scientists. He understood that everything a Marketer does has to start and end with the consumer in mind. For a Marketer like me, this is half common sense and half motivational that I can project to Marketers.

Let me whisper something quietly. The only real reason we have brands is because the brand owners believe that they can make more money from investing in a brand, than they could if they just sold the product alone. Jobs was a billionaire beyond belief. Yet, the beauty of Apple is that while they are the richest company on the planet, until this week, they never let anyone know that was their end goal. They have always been on the side of the consumer. Always living by the golden rule of Apple: “You’ve got to start with the customer experience and work back toward the technology. Not the other way around”.

No Headphone Jack

I have an iPhone 6, so I’m good for now. I am not seeing enough in the iPhone 7 that makes me want to jump. It’s purely an incremental play. Since I’m not in the market for a new phone, once I heard that it was fairly incremental, I barely paid attention. As I said above, pumping out incremental innovation is a necessity of business.

But then when I heard the new iPhone  did not have a headphone jack, I kinda cringed. There is no way the consumer was demanding that you get rid of the headphone jack. 

A couple of years ago, I started to see guys at the gym with headphones without a wire. What a great idea. That way it wouldn’t get in my way doing a bench press or on the elliptical machine. I went to the store and was like, “Woah, $100 more for wireless, I think I’ll wait”. Checking Best Buy’s website this morning, we can see that we can buy some nice Beats by Dr. Dre headphones for $129….

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While the same pair of WIRELESS headphones cost $229.

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I’m sure someone on the Apple team thinks this is a brilliant move: if we take away the headphone jack, we will make the entire planet go spend $229 on new headphones. That’s a bit like the bank that gave out a huge bonus to the person who came up with the 19.99% interest rate on your credit card, instead of 19.9%, because the extra decimal gave the bank made millions of dollars more. That is also brilliant. But both of these things are fairly disgusting. And almost too obvious that there is a complete “money grab”

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The role of Marketing is to improve your brand HEALTH, which then can be stored and leveraged over time to drive longer term to drive more WEALTH for the brand. Sometimes, going after wealth in the short term, can actually take away from the overall heath of the brand. You have to believe that by driving the health that the wealth will come.

Apple’s lack of a headphone jack makes them look greedy for money. It is an annoyance to the consumers who love your brand. For those not willing to invest in new headphones, this is the solution that Apple is providing. Wow, that really just screams consumer friendly. It costs $40, and likely weighs 3x more than the phone. It will be great for consumers to carry that while they run.

Tama-Electric-Lightning-To-Headphone-Adapter

It is completely fine for brands to make a lot of money. But the best Marketers never let consumers see that ugly side. And this one by Apple is pretty ugly. By the way, the Apple stock price first broke the $100 mark in September of 2012. Four years later, it is at trading at $104. It just might be time for Apple to invest in driving that brand health a bit higher.

I love Apple. I just want them to love me back.

Apple just failed big time, because they failed to start with the consumer experience and work back toward the technology. 

To read more on what makes a Beloved Brand, here is our workshop presentation:

Beloved Brands: Who are we?

At Beloved Brands, we promise that we will make your brand stronger and your brand leaders smarter. We can help you come up with your brand’s Brand Positioning, Big Idea and Brand Concept. We also can help create Brand Plans that everyone in your organization can follow and helps to focus your Marketing Execution. We provide a new way to look at Brand Management, that uses a provocative approach to align your brand to the sound fundamentals of brand management. We will make your team of Brand Leaders smarter so they can produce exceptional work that drives stronger brand results. We offer brand training on every subject in marketing, related to strategic thinking, analytics, brand planning, positioning, creative briefs, customer marketing and marketing execution.

Beloved Brands Training program

At Beloved Brands, we promise to make your team of BRAND LEADERS smarter, so they produce smarter work that drives stronger brand results.

  • How to think strategically: Strategic thinkers see “what if” questions before seeing solutions, mapping out a range of decision trees that intersect and connect by imagining how events will play out.
  • Write smarter Brand Plans: A good Brand Plan provides a road map for everyone in the organization to follow: sales, R&D, agencies, senior leaders, even the Brand Leader who writes the plan.
  • Create winning Brand Positioning Statements: The brand positioning statement sets up the brand’s promise to the consumer, impacting both external communication (advertising, PR or in-store) as well as internally with employees who deliver that promise.
  • Write smarter Creative Briefs: The brief helps focus the strategy so that all agencies can take key elements of the brand plan positioning to and express the brand promise through communication.
  • Be smarter at Brand Analytics: Before you dive into strategy, you have to dive into the brand’s performance metrics and look at every part of the business—category, consumers, competitors, channels and brand.
  • Get better Marketing Execution: Brand Leaders rely on agencies to execute. They need to know how to judge the work effectively to ensure they are making the best decisions on how to tell the story of the brand and express the brand’s promise.
  • How to build Media Plans: Workshop for brand leaders to help them make strategic decisions on media. We look at media as an investment, media as a strategy and the various media options—both traditional and on-line.
  • Winning the Purchase Moment: Brand Leaders need to know how to move consumers on the path to purchase, by gaining entry into their consumers mind, help them test and decide and then experience so they buy again and become a brand fan.

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

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

 

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Case study: How Apple builds everything around simplicity

appleIn 1996, the Apple brand bordered on bankruptcy. It was just another computer company without any real point of difference. Years of overlooked opportunities, flip-flop strategies, and a mind-boggling disregard for market realities caught up with the company. The Windows 95 launch by Microsoft had severely eroded Mac’s technology edge. Apple was rapidly becoming a minor player in the computer business with shrinking market shares, price cuts, and declining profits.

Apple looked like it would not survive, as it was a poorly run organization through the early 1990s. Executives made terrible decisions with inconsistent strategies and, most importantly, there was no brand idea for what they should be. After Steve Jobs came to Apple in 1997, he shifted the focus to rebuilding around the  brand idea of “Apple makes technology so simple that everyone can be part of the future.” He took a consumer-first approach in a market dominated by an obsession with gadgets, bits, and bytes.

Here’s how the five elements of smart strategic thinking show how Apple completed its turnaround plan:

1. Set a vision of what you want

Apple’s vision was to make it easy to get everyone to be part of technology in the future. The main issue was how to create brand fans then mobilize them to spread the word to the masses.

2. Invest resources in a strategic program

Apple invested and aligned everything behind a brand idea defined as “Apple makes technology so simple; everyone can be part of the future.” The company uses this brand idea at every touchpoint, including the brand positioning, communication, innovation, purchase moment and experience.

3. Focus on an identified opportunity

For decades, Apple consistently focused on empathizing with—and taking advantage of—the consumer’s frustration with technology. In the 1980s, Apple attacked IBM personal computers as being too complicated. In 2005, they used “I’m a Mac, and I’m a PC” advertising to attack Microsoft. Each time, Apple used its “consumer-first” mentality to transform leading-edge technology into accessible consumer technology.

4. Leverage a breakthrough market impact

Apple takes a fast-follower stance that takes current technology and makes it simple to use. Every platform, including desktops, laptops, phones, watches, tablets, and music streaming delivers the brand idea of “simplicity.” And, Apple deploys high profile launch hype to use vocal Apple advocates to spread the word to their friends.

5. Performance result that pays back

Apple created a consumer bond with their brand fans to enter new categories. On top of that, Apple is now the most beloved consumer-driven brand, with premium prices, stronger market share, sales, and profits. They used brand love to help drive a remarkable 40x revenue growth over 10 years, skyrocketing from $5.7 billion in 2005 to $240 billion in 2015. This rapid growth helps cover the high costs of advertising and R&D, giving them very healthy operating margins, up over 35%. All this strategic effort has increased their market capitalization approaches $1 trillion.

 

The Apple Brand Plan

If you took the strategic thinking model and began to outline a brand plan for Apple brand, these would be the  core elements:

Vision: Apple wants everyone in the world to be part of the future.

Goals: Continue aggressive sales growth, geographic expansion into China, launch a major new consumer-friendly technology each year.

Key issues: 1) How do we convey Mac’s superior user experience versus the traditional PC?  2) How do we enter the music industry and increase the availability of online music to support our iPod?

Strategies: 1) Apple will launch a full communications assault to challenge the PC/Microsoft Windows dominant position by finding flaws in the PC to contrast with Mac computers’ simplicity to steal significant market share by enticing frustrated PC consumers to buy a Mac.  2) Apple will launch a full assault against the entire music industry with a disruptive innovator stance to show how iTunes provides higher quality digital music on your iPod much cheaper, faster and smarter than CDs to gain an entry point into the music industry.

Tactics: TV advertising to highlight new features and challenge competitors. Launch innovation each year including phones, tablets, online music, watches and personal computers. Laugh specific products for China. Increase retail space around the world. Build out the e-commerce program.

How Apple builds everything behind the “simplicity” brand idea

The brand idea for Apple is “making technology so simple that everyone can be part of the future.”  They take a consumer-first mentality, as they transform leading technology advancements into “consumer-accessible” technology, helping fuel the perception among the mass audience that Apple is an innovative leader. 

Apple has done a great job in taking that brand idea and stretching it across their brand story through advertising, and their innovation plan (as they have entered many new technology categories). They have also used their brand idea to guide how they manage the purchase moment (to make sure their retail outlets are easy for consumers), and how they create happy experiences for consumers. And when they don’t nail the ideal consumer experience, they go out of their way to help out. They also have the genius bar and on-site lessons, which help increase the knowledge of consumers.

Apple’s advertising has delivered “simplicity” since the 1970s

Apple’s advertising has been relatively consistent for over 40 years and incredibly connected with consumers. The early print ads of the 1970s talked about how we designed the computer, so you don’t have to worry about the details.

The “1984” TV ads for the Mackintosh launch spoke about the freedom from machines. Although the message was a little ahead of its time, it fit with simplicity.

The brilliance of the side-by-side “Mac versus PC” TV ads epitomized the brand idea by making the PC seem overly complicated and frustrating while setting up the Mac as the simple alternative.

Apple builds product innovation around simplicity

Apple has taken many failed technology ideas like online music, tablets, or mp3 players, and turned them into consumer-friendly platforms such as iTunes, iPads, and iPods. With each new product, Apple uses launch hype to generate excitement to spark the enthusiasm of the early adopters who spread the word. Also, Apple has successfully taken its cherished brand fans into new categories. 

Purchasing Apple products is very simple, including its own retail store experience 

Apple uses simplicity to manage the purchase moment through its retail stores, making sure the experience is simple and straightforward. All staff carry a credit card machine and complete the transaction very quickly. No lines or cash registers. Simplicity shines through the store layout, with the genius bar for one-on-one tech questions and support and the training area to teach classes. The brand also puts every Apple product on display to allow consumers to take them for a test drive. 

Even when Apple products are in other stores, the brand has used its power with that retailer to create a distinct store-within-a-store concept, which replicates a similar look and experience from Apple’s own retail locations.   

Apple obsesses about the consumer experience

As Steve Jobs famously said, “You have to start with the customer experience and work backward to the technology.” Apple even believes opening your Apple products should be like unwrapping a gift.

The brand wants the consumer to be able to use any Apple product right away rather than spending hours loading software or setting up your machine. Regarding product integration, Apple products work together, and they work the same way, which makes it very simple for consumers when they move from one Apple product to another.

Brand Love leads to power

As Apple has achieved an extremely tight bond with a loyal mass of followers, they use the tight consumer bond to generate brand power that they quietly wield in the market. Apple’s retail network of stores generates twice the sales per square foot of any retailer in the world, yet it is a very soft-sell environment. I was recently on a double-decker bus tour of New York City, and when the bus went past the 5th Avenue Apple flagship store, half the bus stood up to take a photo. And, Apple has such a power over the supplier network with an array of engineers following extremely tight procedures. Also, they have a power over the media, generating over $2 billion worth of free media each year. Moreover, Apple fans want to work at Apple, many times giving up lucrative jobs just to be part of the brand.

Apple Case Study Big Idea Simplicity

Brand Love leads to Profit

Apple extrapolates the power they generate into profit, with their incredible financial performance over the last 15 years. And, they generate significant price premiums, relatively lower cost of goods and moderate marketing spend ratios. This holds their margins at healthy levels for a technology firm. Furthermore, Apple has entered many new categories over the past 15 years, each time their army of loyal fans has followed, moving into laptops, phones, tablets and the music business. In each segment, Apple continues to gain share to drive volumes. Finally, the higher margins and higher volumes make for a beautiful profit statement.

Apple Case study big idea simplicity

 

Even though Apple gives the perception of an extremely friendly brand who is on the side of the consumer, they are now a huge mass market corporate brand, with a market capitalization of $500-600 billion, which 2-3 times the value of companies like Coke, Procter & Gamble, Pfizer, and IBM. So, if you invested a mere $10,000 in 2005, you would have $240,000 a decade later.

Apple uses their brand’s Big Idea to turn Brand love into higher power and profits.

At Beloved Brands, here is an expanded version of the Apple Case Study, including how Apple’s Big Idea guides everything they do, how to develop Apple’s Brand Strategy Road Map and how Apple’s brand love drives power and profit. Click on the Powerpoint file below to view:

 

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

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

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

Beloved Brands book

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

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

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

Beloved Brands: Who are we?

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

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

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

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

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

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

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

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

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

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

Signature

Graham Robertson

Founder and CMO, Beloved Brands Inc.

 

When your brand is liked, but not loved

308040_478690928818846_943242162_nAs we dive deeper into brand love, we need to set up the Brand Love Curve as a core foundation that we use in every part of this book. In the consumer’s mind, brands sit on a Brand Love Curve, with brands going from “Indifferent” where consumers have no opinion to the “Like It” stage where consumers have a rational connection up to the “Love It” stage where consumers start to crave it and develop an emotional connection and finally up to becoming a “Beloved Brand” for life, where consumers are outspoken fans with a deeply emotional cult-like connection to the brand. Slide1

 

Don’t feel bad about being at the “Like It” stage, because that’s where most brands sit. But it does mean that you might not be making the most out of the potential of your brand. You have been able to carve out a niche and be a chosen brand against a proliferation of other brands in the category. You have good shares, moderate profits and most brand indicators are probably reasonably healthy. It’s just that no one loves you. You are likely not really doing enough in your marketing to create a bond with consumers. Consumers see your brand as a functional and rational choice. They tried it and it makes sense so they buy it feeling that it meets a basic need. But, consumers don’t have much of an emotional connection or feeling about the brand. You you are seen as ordinary, which is just a little bit better than indifferent.

There are seven reasons why you are at the “Like It” stage:

  1. Protective brand leaders leads to “caution”:  While many of these brands at the Like It are successful, they get stuck because of overly conservative and fearful Brand Managers, who pick middle of the road strategies and execute “ok” ideas. On top of this, Brand Managers who convince themselves that “we stay conservative because it’s a low-interest category” should be removed. Low interest category does not mean you just give up. It means you need to do even more to captivate the consumer.
  2. Rational thinking marketers means “boring”: Those marketers that believe they are strictly rational are inhibiting their brands. They lack passion. Boring brand leaders produce boring brands. dont be boring.001The brand managers get so jazzed on claims, comparatives, product demonstration and doctor recommended, that they forget about the emotional side of the purchase decision. Claims need to be twisted into benefits—both rational and emotional benefits. Consumers don’t care about you do until you care about what they need. Great marketers find that balance of the science and art of the brand. Ordinary marketers get stuck with the rational only. 
Don`t get stuck with just features and claims. Match them up to consumer needs and create rational benefits and then dial them up to emotional benefits.
  3. New brand with momentum: Stage 2 of a new brand innovation is ready to expand from the early adopters to the masses. The new brand begins to differentiate itself in a logical way to separate themselves from the proliferation of copycat competitors. Consumers start to go separate ways as well. Retailers might even back one brand over another. Throughout the battle, the brand carves out a base of consumers. As your new brand continues to gain momentum, now is the time to layer in the emotional benefits, look to find a small growing army who love the brand.
  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 addressing the leak, the brand gets stuck. People like it, but refuse to love it.
  5. Brand changes their mind every year:  Brands need consistency. When the promise and the delivery of the promise changes every year it’s hard to really connect with the brand. A brand like Wendy’s has changed their advertising message every year over the past 10 years. The only consumers remaining are those who like their burgers, not the brand.
  6. Positional Power so you think “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 Walmart or even many of the pharmaceuticals products don`t see value in the idea of being loved. The problem is when you lose the positional power, you lose your customer base completely.
  7. Brands who capture love, but don’t impact the life ritual: There are brands that quickly capture the imagination of consumers but somehow fail to capture a routine embedded in the consumers’ life. Whether it’s Krispy Kreme, Pringles or even Cold Stone Ice Cream, there’s something inherent in the brand’s format or weakness that holds it back. It might be loved, but just not often enough. Out of sight, out of mind, means you almost forget you love them.

Here are the indicators that your brand is at the “Like It” stage:

  • Low conversion to purchase: While the brand looks healthy in terms of awareness and tracking scores, the brand 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 enough: An important advertising tracking score to watch is “made the brand seem different” which helps separate the brand from the pack. When you’re a rational message, you won’t see this score break through.
  • Stagnant market shares: When you’re a liked brand, gains you make are offset by losses on something else. Your brand team is content 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 can get the same thing with the private label and the share starts to creep up to 20% and higher.

Here’s some challenges for how to get to the “Love It” stage:

  1. Build a bigger following by driving deeper consideration and purchase:  Begin to sell the brand’s benefits as solutions, not just the product. Invest in building an emotional brand story that helps to drive increased popularity and entices new consumers.
  2. Begin to leverage those people 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 for the brand.
  3. Love the work: It is time to dial up the passion that goes into the marketing execution. The most beloved brands have a certain magic to them. However, “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.
  4. 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 favorite.  Be proactive by fixing the leak.
  5. Build a Big Idea: Consumers want consistency from the brand as constant changes to the advertising, packaging or delivery can be frustrating. Build everything around a big idea, including the brand story, the innovation and experience to establish a consistency for the brand and help build a much tighter relationship.

Brands at the “Like It” stage get complacent. You need to disrupt the marketing team to focus on driving passion into the work. You need find a better balance between rational and emotional benefits. 

Find your love by showing more love for your consumers

Here’s a workshop we run on creating a beloved brand. We hope it provokes you to think differently so you can see how you can unleash the full power and profitability of your brand.

We make Brands stronger.

We make Brand Leaders smarter.™

We offer brand coaching, where we promise to make your brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your brand’s full potential.

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For our brand leader training, we promise to make your team of brand leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

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The ads that have defined the Apple brand

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The most beloved brand of today is Apple, which has created a cult-like status to drive towards the masses, giving the brand a bond unlike any brand in our history. Apple is based on the Big Idea that Apple makes technology so simple that everyone can be part of the future. The promise to support that idea is to make things so simple, everyone can feel smarter & more engaged. The Apple story starts whit he belief that technology shouldn’t be frustrating. You should be engaged right away, do more and get more.apple big idea map.001

Apple also wields the most power in the market, with consumers lined up behind every new launch, the media giving Apple over 2 billion worth of free media each year and a retail store network that has twice the sales per square foot of any retailer in the world. Apple is now a huge mass market corporate brand, with a market capitalization of $700 billion, 3 times the value of companies like Coke, Procter & Gamble, Pfizer and IBM. They have the Profit and Loss statement that every Brand Leader wants with high margins, relatively low marketing costs, growing market shares and quick entry into every new market.

I recently saw the new “Steve Jobs” movie, which I would highly recommend. I believe he is the marketing genius of our generation–albeit equally flawed in how he treated people. People at Apple used a term “Reality Distortion Field” to describe how it felt to work with Steve Jobs. The movie really captured the good and bad of the reality distortion field: the good is that he had an incredible vision to see things others couldn’t and the bad is he had delusions to read into things that others didn’t. Overall, Jobs was able to get people to produce results that they had believed impossible. The movie uses 3 major launches to anchor the story of Steve Jobs, which triggered my thinking to look at the 3 major Apple ads that defined the brand.

1984

At the time, it was called the best ad ever. What it did very well was express the brand’s vision for the future, even if that vision was ahead of its time. While it didn’t sell many Macs at the time, that was likely due to issues around others parts of the marketing mix such as price and product. I also see it part of Jobs’ “reality distortion field” with the entire market, where he saw things going and it would take another 15 years to catch up to his vision.

Think Different

Upon the return of Jobs to Apple in 1997, his first product launch was the iMac, but the “Think Different” idea really captured how he saw the brand’s purpose and challenger attitude. As much as this was advertising, I believe it an even better internal message to the culture and organization that he wanted to build and how he saw their role was to change the world at the impact level of the world’s greatest leaders ever. There were two versions, one in the voice of Richard Dreyfuss and the other in the voice of Jobs himself. When you see the original copy of the ad below, tell me this doesn’t read like Apple’s true internal beacon you could hang on the walls of the head office. That’s why I prefer the voice of Jobs, almost as though he’s holding his team accountable for achieving what seems to be the impossible in the future.

“Think Different”

Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes.

The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them.

About the only thing you can’t do is ignore them. Because they change things. They invent. They imagine. They heal. They explore. They create. They inspire. They push the human race forward.

Maybe they have to be crazy.

How else can you stare at an empty canvas and see a work of art? Or sit in silence and hear a song that’s never been written? Or gaze at a red planet and see a laboratory on wheels?

We make tools for these kinds of people.

While some see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.

“I’m a Mac”

The Mac vs PC campaign serves to express Apple’s clear point of distinction with their main competitor and carving out Apple’s big idea around “simplicity”.  With 66 ads made in this campaign, each one points out a new difference between Macs and PCs. This campaign is one of my favorites of all time. At Beloved Brands, we teach brand leaders how to judge advertising using our ABC’S tool:  Attention, Branding, Communication and Stickiness. This campaign easily achieves all 4, the humor grabs your attention, the iconic side-by-side technique over 66 spots serves to establish the brand and the communication of simplicity and the inevitable answer at the end of each ad helps stick the overall message that Macs are clearly better.

What’s your favorite Apple Ad?

Here’s a workshop we run on helping brand leaders make better advertising. We hope it provokes you to think differently so you can see how you can unleash the full power and profitability of your brand.

We make Brands stronger.

We make Brand Leaders smarter.™

We offer brand coaching, where we promise to make your brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your brand’s full potential.

BBI ads for 2015.003For our brand leader training, we promise to make your team of brand leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911New 2015 Bio .001

 

 

Is Samsung a beloved brand? Not quite, but it’s really likeable.

Samsung is a classic product-driven brand, but has struggled to reach that next level where it becomes an idea brand.  I know the first thing people will say:  Does it matter if they love Samsung?  Well, my argument is that the more beloved the brand, the more power it can command and the more profit it can generate.  Profit has to matter, right?  

I like Samsung Products a lot!  But there’s not Brand Idea

Samsung-LogoSamsung has amazing products.  The TV’s are fantastic, high quality good designs and good prices.  The laundry products appear to be best in class, going beyond LG.   And the Samsung phones are amazing–leading Android technology with many consumers saying they are ahead of Apple.  The leading market share backs that up.  

But what’s the unifying idea behind Samsung?   Has Samsung created such a following that their most loyal consumers wouldn’t even look at another competitor?  Would they follow Samsung into a new category just because they buy into the brand?  Does Samsung elicit that crazed passion we see in Apple consumers?  This week, Apple launched a pretty good new phone, and we saw the usual line ups, running consumers and even a fight this time.  

There are enough Apple haters, but are they Samsung lovers?  

Samsung tried last year to go head-to-head with the Apple brand by mocking Apple, which tapped nicely into those who are sick of Apple and their fan club.  But there was very little in the ad that made us love Samsung.  

The problem for Samsung is they keep talking features and not benefits.  Even in that ad above, the only thing you take away is you can share song lists and you get a bigger screen.  There’s no talk of benefits, either rational or emotional.  In a technology battle, features are easy to duplicate but benefits are harder to replicate.  And the ad has no real brand idea, likely because the folks at Samsung don’t seem to know what their brand idea is.  

Where is Samsung on the Brand Love Curve?

In the consumer’s mind, brands sit on a hypothetical Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand for Life.  Knowing where you on the curve allows you to understand how much connectivity and power your brand has in the marketplace.


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.  And with that power, you can generate more profit for your brand–through higher prices, lower cost, new categories or market share.  It’s important that brands understand where they sit on the Love Curve and begin figuring out how to move it along towards becoming a more Beloved Brand.  

While filled with fantastic products, the Samsung brand feels stuck at “Like It”.  Part of what separates “Like” from “Love” is the lack of the emotional connection.  When consumers start feeling more and thinking less, it shifts the discussion from just the product features to connecting to the brand idea.  slide1

The question that has to be bugging Samsung is How loyal and passionate is the Samsung consumer base?  If Samsung loses the technological advantage behind Android (which is slightly out of their control) then will they lose their customer base as well?  The head-to-head comparison with Apple might have Samsung winning on share, but Apple’s brand love still generates profit margins almost 4x that of Samsung.  And when Apple launches a new phone, we see line ups, people running to get into the store and even a reported fist fight in line.  Samsung would die for the connectivity with their consumer base and die for those margins.

Most beloved brands are based on an idea 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. brand promise
      2. strategic choices you make
      3. brand’s ability to tell their story
      4. freshness of the product or service
      5. 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.  

Looking at those 5 connections, Samsung promises high quality, modern products at a good price.  And they deliver.  They do a great job on product freshness–especially in TVs and most recently phones and appliances.  But that’s where Samsung gets stuck:  they are just a promise and a product.  They fail on the Samsung story where we can’t see a unifying brand idea to help tell a consistent story across the Samsung brand.  And once we see them start turning their features into benefits for the consumer, we’ll start to see Samsung control the end experience for that consumer.  All beloved brands create an experience beyond the product, and it’s that experience that keeps consumers loyal and engaged with the brand.  

Samsung could learn from Apple

The Apple brand idea is all about simplicity.  The people at Apple take the technology out of the technology to make it so simple that everyone can be part of the future.  They align all their new products to this promise, whether it’s iPhones, Mac Books or iPads.  Apple lines up the story through advertising, social media and the use of key influencers.  And the retail stores deliver the experience of simplicity.

Slide1

Samsung could also learn from the now famous Steve Jobs quote that you  “You’ve got to start with the customer experience and work back toward the technology – not the other way”.  If Samsung were to get into the shoes of the consumer and see the world through their eyes, they might start talking benefits, they might find a brand idea that unifies all the Samsung product lines and they might find that experience to take Samsung to the next level.

Hey Samsung:  Stop being just the “next best product feature” and find a brand idea to build around.    

 

For a presentation on how to write a Positioning Statement, follow:

 

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.  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@beloved-brands.com 

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

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

The Microsoft Tablet Disaster was so easy to Predict

bgr-surface-red-touch-coverWell, that was quick.  Nine months ago, Microsoft made a big deal about getting into the Tablet business. And now nine months later, Microsoft is writing off $900 Million worth of Tablets that have been occupying a warehouse.   Not only the major write off, but now that the outlook and confusion of what’s next for Microsoft looms, the stock price dropped 10%, losing $30 Billion in market value.  Ouch.  

I hate being right!!!  I just hate it. The reason I hate it, is because it seems like the obvious should be obvious to everyone.  This tablet launch just had disaster screaming all over it.  Sometimes the answers are so obvious, yet people are blinded by not asking the right question.  They just go ahead with wrong answers. For Microsoft, they missed a bunch of right questions?  

Q: What business are we in?   
A: We do software really well.  Especially when we are in a monopolistic position.  We kinda suck at hardware.  Did you see what we did on Zune?  That wasn’t pretty.   

Q: Do we have a leap-frog technology? Is the Microsoft Surface product better, different or cheaper?  
A: Not really different.  It’s like a really nice iPad with a very bad and cheap plastic lid. And better?  Well it is better than a tablet, which people use for fun.  But it’s nowhere near a Macbook Air which people use for work.  So we’re better than one and worse than the other.  We’re a bit confused but we hope the consumer gets it.  And we are going to charge a significant premium, because we are Microsoft and we always do.   So I guess it’s not really better, cheaper or different.  But, we have lots of resources and stores of our own.  Well, not a lot of stores, and they aren’t very crowded.  But we hope this does well? 

Q: Will it be pretty easy to communicate the point of difference?
A:  Not really easy.  We are going to do ads with geeky people dancing and closing the lid. A lot.  People might think they are laptops.  But we’ll press the screen so they know it’s like their iPad, only it has a lid.  We won’t try to out-cool Apple.  We’ll try to be cool, as in “the coolest kid in the Science club” kind of cool.

Q: Apple is already on their 4th tablet and likely has 3 years of incremental innovation in the pipeline?  Samsung Galaxy is an amazing product and they are killing it on cool innovation.  Do we have any R&D innovation beyond the initial launch?    
A:  No.  Is that a problem?  

Q: If we are so good at software, and the world has moved to Apps, which is sort of like software, why don’t we take all our energy and expertise in the software business and start applying that to Apps?  
A:  Wow, that’s a good question, but we’ve already ordered the plastic lids for the Tablets.  Why don’t we do both.  But truth be told, we kinda suck at Apps.    

These questions would have allowed us to look at the vision, promise, strategy, story, freshness and culture that would showcase how ill prepared Microsoft was for the Surface launch. Here’s an example of how a brand like Special K uses the promise, story, freshness, and culture to help guide their brand.

Slide1

Answering these 5 questions also helps to map out the Microsoft Brand Strategy Road Map.   It might also highlight how wrong the surface is to the overall Microsoft brand. Here’s an example of what the Brand Strategy Road Map looks like.

Slide1

Predicting Disaster Was Pretty Easy

In the spirit of predicting this disaster, I wrote a story last June on the how the Microsoft Surface would be a disaster.  Like I said, I hate being right.  Click on the story below:  

Why Does Microsoft Keep Copying Apple?

At the time, the response i got back was 50/50, with half of the people criticizing the Microsoft Surface launch and the other half criticizing me for criticizing the Surface launch.  I always figure 50/50 is a good ratio to stir the pot.  But, I was starting to think I might be going overboard on being an Apple lover.  Here’s a summary of my view.

Getting into the Tablet Business Feels like Zune

Getting into hardware is a big gamble and not something that fits with Microsoft’s strengths.  To be a success, you either have to be better, different or cheaper and this feels like none of those.  Just like the Zune, it feels as though they are late and aren’t really offering anything that’s a game-changer to the category.  Like most categories at the stage where tablets are, until someone really shakes it up, the next few years are likely all about constant small innovation, new news each year with Apple leading the way on the high-end and Samsung’s cost innovation will likely squeeze Microsoft right out of the category.  The analysts are so excited by the launch that the MSFT stock price is down 1.3%.

The Best Strategic Answers Start with the Best Strategic Questions

 

To read more on How to Write a Brand Plan, read the presentation below:

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

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

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

Apple: What goes up, might come down

 

The Apple brand of today is still healthy, the stores are still packed and sales are still strong. But the fear is that if Apple’s innovation over the next 18 months looks like Apple’s innovation of the past 18 months, then the Apple brand may be at its peak, no longer on the climb.   

My hope is that Apple finds their way and regains the momentum of the brand that has surprised and delighted us like no other brand. But my fear is they become another Sony that rests on their laurels and coasts for the next decade. I’m a big Apple fan, typing away on my MacBook Air with my iPad mini and iPhone close by and my iMac sitting on my desk. But it sure does feel like Sony of the early 1990’s. There’s talk of geographic expansion into China, but that might take their eyes off the real need: we need to see real innovation. Enough of the incremental BS. What do you have that will surprise me beyond my wildest dreams?

Five Connectors of a Beloved Brand

To be a Beloved Brand, you must have an idea that’s worth loving.  Under the Brand Idea are 5 sources of connectivity (see diagram below) that help connect the brand with consumers and drive Brand Love, including

  1. Brand promise
  2. Strategic choices
  3. Ability to tell their story
  4. Freshness of the product or service
  5. Overall experience and impressions it leaves with you.  

Everyone wants to debate what makes a great brand–whether it’s the product, the advertising or the experience.   It is not just one or the other, but the collective connection of all five that make a brand beloved.  If one of them weakens against the brand promise, it puts the entire brand at risk.

Slide1

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.  

Problem #1:  Has Apple Broken their Promise? 

Over the last decade, 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. Apple takes the technology out of technology so we can all benefit. That’s right–“so we can all benefit”.  Apple is now a brand owned by the Masses. Yes, the masses rely on the innovators for advice, but Apple caters as much to my 70-something mother (iPad owner) as it does to my 14-year old daughter (iPhone user).  

There are 4 instances in the past 18 months where Apple has gotten off track:  

  1. Apple Maps were a disaster in more ways than one. The first week of iPhone 5 owners was largely filled with the most loyal Apple users, the innovators who will influence the rest of us. And the maps disaster was the first major flaw of the post-jobs era that people were waiting for.   
  2. Siri remains a disaster. Siri does not deliver the promise as it adds frustration, not solves it. Siri is a nice little toy that combined with Apple’s auto-correct takes my enunciation and turns into words I’ve never dreamed of saying. I end up having to re-type the mistakes of Siri, which defeats the whole purpose behind voice recognition.  If these were brakes on a car, it would be re-called for the safety of society. It’s unlike Apple to release such a bad product.   
  3. Retina Display is not a mass play. The launch of iPad 3 feels odd. They kept the iPad 2 out in the market and didn’t even put the #3 on the iPad 3. It feels like something the niche Apple brand would have done, but now that you are a mass brand, you must cater to your consumer.  
  4. Apple TV has done nothing really. While a few friends have it, I hear no one talking about it. A quiet Fizzle.  

USP 2.0

Strategically, these 4 innovations were some of the big plays by Apple in the past 18 months. And where do they fall on the test of uniqueness? The Maps puts you in the losing zone where you are competing with Google Maps in the zone where they kick your ass.  Retina Display ends up being a niche play for photographers or fussy consumers, but for the rest of us it is in the “who cares”, certainly not worth an extra $150 compared to the iPad 2. And Siri is not on the map, because it’s just an under-delivery that while it’s an innovation that leads the consumer, it only ends up frustrating them even more.   

Problem #2: Is Apple still making a dent in the universe?

What caused Apple to rise so fast during the first decade of the century was innovation–the iPod followed by iTunes, the iMac vs the PC, the iPhone and then the iPad revolutionized the way we interact socially. In many cases, Apps have replaced software.   Wow, Wow and Wow!!!

Slide1

But, the last 15 months has been a period of incrementalism.  In 2012, we saw iPad 3, iPhone 5 and iPad Mini and the fear among investors is that 2013 might be iPad 4, iPhone 6 and iPad Mini 2. Slightly better, slightly lighter, but just as expensive. There becomes less and less of a reason to trade up. And sadly, at risk, less and less of a reason to love the brand. Technology is about leap-frog. And the world will not stand still in the next year. Brands like Google and Samsung are ready to leap.  

Steve Jobs always talked about “Making a dent in the Universe” and people bought in and followed. Apple’s beauty has always been to give us what we never imagined.  And yet, now we are starting to not only imagine it, but predict it.  Everyone saw the iPad Mini coming. In fact, we asked for it and Apple merely succumbed to our request. Technology is supposed to surprise us with advances that not only meet our needs but cater to the needs we didn’t even know we had. Apple has to get that back.  

Is Apple still making a dent in the Universe?  

Problem #3: Apple must quiet the “Anti” Apple Segment

Haters are always going to hate. In the technology space, the innovators and early adopters are those who tell the rest of us what to think and do. These consumers are constantly looking for the “technology fraud” and it feels as though some are starting to call Apple on it. The Samsung advertising has capitalized on this insight, openly mocking the iPhone5 launch. The only way Apple can shut this down is with action on the technology front. If Apple’s next product is the iPad Mini with Retina display or  the iPad4 comes with a better battery life than this group will become even more outspoken.

There are so many parodies of Apple being shared by millions that not only mock the technique of the advertising but the incrementalism of their technology.  This only fuels the haters.  

Problem #4: Leadership Style

When Tim Cook took on the Apple brand, people worried but became re-assured that he had been running the Apple brand for a while. The brand was on a high after an amazing decade under Steve Jobs, and as a leader he faced a “sustaining success” leadership challenge. Keep the momentum going. Can anyone re-live that visionary relentless pursuit of perfection that Jobs brought to the role.  

Now it appears that Cook faces a “re-alignment” challenge. Cook needs to re-invigorate the R&D at Apple to push for innovation that goes beyond expectations. Making a dent in the universe means pushing for greatness, not settling for OK incremental-ism. Cook has quickly fired all those connected to the Maps fiasco. But, he has to look at himself in the mirror for wondering how it got out past him. The pressure is definitely on. The questions of 18 months ago are back:  

Can Tim Cook do it?   
The World and the stock market are watching Apple.

To read How to Create and Run a Beloved Brand, read the following presentation:


Positioning 2016.112

Target Market: Why not just target everyone?

“You have to start with the customer experience and work backwards to the technology.  You cannot start with the technology and try to figure out where you are going to sell it”                                                      

Steve p. Jobs

I once had a Brand Leader tell me that their target was “18-65, new potential customers, current customers and employees”.  My response was “you’ve left out tourists and prisoners?”  It took me another hour to talk them into potentially focusing their limited investment on a group of people who might be most likely to buy their product. That Brand Leader was a Bank selling first time mortgages.  While there could be an 18-year-old or a 64½ year old that might be buying a mortgage for the first time, it’s actually not likely.  In fact 18-65 is the opposite of a target.  I did manage to talk them into a 28-33 year old target, which gave us the chance to build insights about all the life-changes these consumers were going through (careers, babies, need for more space) that allowed us to develop Advertising Creative around moments that the consumer goes through and we focused the media in places where the 28-33 year olds would most likely see our ads. That would have been missed with the broader 18-65 target range–we would have spread our dollars so thin that no one would have seen it, and we would have spread our message so broadly that no one would have felt any connection to it.

A good brand strategy has four key elements: 

  1. FOCUS all your energy and investment to a particular strategic focal point or purpose. Match up your brand assets to pressure points you can break through, maximizing your limited resources—either financial resources or effort. Make tough choices and choose to be loved by the few rather than tolerated by the many.
  2. 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. Without the early win, you’ll likely seek out some new strategy even a sub-optimal one. Or someone in management will say “it’s not working”. You don’t want either of those–so the early win helps keep people moving towards the big win.
  3. 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.  This is where strategy provides that return on Effort–you get more than the effort you are putting into it.
  4. 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.

Since Every brand has limited resources—marketing dollars, people resources to carry out programs and any share in the market, whether that’s share of voice, shelf, display, recommendations–you never want to waste these resources by spreading them so thinly on everyone.  When you turn to your brand P&L, your CEO and finance people will expect you to deliver an appropriate ROI, or that investment will start to get smaller because they’ll give your dollars to someone else that can deliver a higher ROI.  And yet, even with that, you still refuse to focus? If you had to lift up a car, would you rather 8 football players each standing 3 feet apart or a simple $89 car jack. I’d take the jack because lifting up at a key focal point gives you an early win as you start to watch that car start moving up, the leverage point of the jack holds that 3000-pound car in the air so you can change your tire without even breaking a sweat (the gateway) and you can now drive away. Those poor football players would begin shaking after a few minutes.

Spreading your limited resources across an entire population is cost prohibitive. While targeting everyone “just in case” might safe at first, it’s actually less safe because you never get to see the full impact. Realizing not everyone can like you is the first step to focusing all your attention on those that can love you. Be honest in assessing your brand’s assets and then match those assets up to who is most likely to be motivated enough to buy your brand. That’s when you start to define the target, and then take your resources and do your best to get them to buy.

Who is the Consumer Target and What do they want?

Try to balance the target based on demographics (age, sex, income) and psychographics (behaviours, attitudes and values). Yes, people criticize relying on demographics, but when you go to market, traditional media usually sells their media based on demographics (e.g. TV target is 18-34 years old).  With new media, whether that’s search, display or social media it allows you to focus more on psychographics and match up to whats most important to the consumer. In terms of the creative, I always challenge people to narrow the target down to a 5 year range (eg. 28-33 years old) to give the creative the appropriate tone and feel. For every part of the buying system connected to your brand, take a walk in the shoes of the person who is paying their hard-earned money for the brand you offer, whether that’s a customer, consumer, purchaser, contractor or medical professional. I always think of my consumer as the “most selfish animal on the planet” just to ensure I’m doing the most I can to satisfy that selfishness. After all, the selfishness is well deserved, since they have money spend. Understand and meet those needs.

What do they want?
Consumers don’t care what you can do, until you care about what they need. 
They will only pay you money, if you give them something. That sounds simple. But, keep in mind they will pay you even more money if you give them what they need. And they’ll start to do that over and over again if they get even more from your brand. That means moving your brand from just features up to benefits and all the way up to emotional benefits. Ask consumers what they want. Listen. Don’t start with what you’re selling.   Put yourself in their shoes and ask yourself over and over again “so what do I get from that” until you’ve come up with something powerful. Speak in terms of benefit, not features.

And remember, no one ever really wanted a quarter-inch drill; they just needed a quarter-inch hole.  Sell the hole, not the drill. 

Beloved Brands: Who are we?

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

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

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

Positioning 2016.112

 

 

 

Apple is Facing Major Declines…

Those are fighting words for most Mac, Iphone or Ipad users. If you are in the Apple tribe, that headline probably gets your blood boiling, ready to call me an idiot and tear into this blog. But, I don’t really mean it. I hope that you’re totally upset, so I can prove a point, as to how loyal Apple users are. So relax and enjoy the article. It’s all about how great Apple is. In fact, I’m typing on my Mac as I speak, with my Ipad charging away about a foot away. I could not live without my Ipad–stylus and all.

A few weeks ago, someone asked for a good marketing book to read. I said “Have you read the Steve Jobs biography, because that would be a great starting point.”  I do believe that aside from his craziness, Steve Jobs is the best marketer of our generation. Everything he did was about the consumer, not just in taking their feedback but in guessing what they might want next. He was committed to the art of marketing, from the design in the product and software right down to some of the best advertising of our generation whether it’s “1984” or “I’m a Mac”.  He was obsessive in his commitment. He had to love the work or he’d reject it.  His bar was exceptionally high.

For Apple to this point, it has all been about Steve Jobs and thinking differently.  With his own voice, here is what makes Apple great.

 

Brands travel along the Love Curve, going from Indifferent to Like It, to Love It and finally become a Brand For Life.  When you achieve the ultimate status as a Beloved Brand, demand becomes desire, needs become craving and thinking is replaced by feelings. And, Apple is the most loved of all Brands. When you love a brand like Apple, you are loyal, unrelenting and outspoken. Try saying something negative about Mac to someone in the tribe and watch out. That’s like knocking their favourite sports team. To Apple users, it’s very personal: you are possessive of your Apple brands you own. It’s extremely emotional for you, certainly not rational.

Nothing comes close to what Apple has done over the past 10 years, whether it’s in desktop computers, laptops, mp3 players, smart phones, tablets and even the retail space. Three times this year, I’ve walked past an Apple store before the mall opens, and there are usually 10-15 people waiting for the doors to open up. I’m sure every retailer would love that.

Samsung and Microsoft are strong brands, but stuck at the Like It stage.  While consumers gladly buy their products, no one is going to stand up and defend them. People are indifferent about Brands like Dell and HP who have commoditized laptops, charging a slight premium, but barely.  Even Sony has fallen from grace, recently announcing billions in losses.  If you are born before 1975, and rarely buy electronics, you still think “wow, that’s a great price on a Sony”.   But that group gets smaller every year.  The HTC brand only wins from carrying Android, but no one really cares they have an HTC phone.

Apple has an amazing brand following.  It’s like a tribe of loyalists ready to speak out and defend the brand.   How have they done this?

1.  Products that the consumer doesn’t even know they want yet:  While in the technology field, Apple has never done the better mousetrap. Apple is all about the consumer. Apple has an invention mindset.  It’s more than just making money. They want to make a dent in the universe.  It’s about thinking different and delivering something the consumer could never have imagined. Apple carefully considers what consumers are looking for. They are completely meticulous in the planning and design stage. They keep things plain, simple and so easy-to-use products not only to make the consumers happy, but also make them want to buy more products in the future. Apple is an idea connected to simplicity, not just a series of products.

“You’ve got to start with the consumer experience & work backwards to the technology.  You can’t start with the technology & try to figure out where you’re going to sell it”

Steve p. Jobs

2.  Are You a Mac?: Let’s face it, Apple is a cool, hip brand. It pushes a strong identification with everything young, up-to-the-minute and smart. The “I’m a Mac Campaign” was brilliant in not only defining the Mac brand as smooth, confident and cool, but defining the PC brand as old, uptight and awkward. At the height of this campaign I was in a crowded bar that went immediately silent when one of the “I’m a Mac” TV ads came on. Also, many of the Apple products have separated themselves from the competitor, whether it’s the white headphones on the iPod, the number of apps for Iphone and Ipad or the cool sleek designs of the Mac.  Not only that, the Apple store is a store just for Apple users.  My mom, who is 77 and a recent ipad user has been to the Apple Store numerous times, taking some of the courses or just asking for help.

For fans of the “I’m a Mac” campaign, here are 15 ads.

3.  An Obsessive Commitment to the Consumer and the Apple Brand.  Stemming from Steve Jobs, the entire company is committed to simplicity in design and functionality. Whether it’s the rounded edges, colour choices for product or the Glass on the Apple stores, there is a certain obsessive behavior. Sometimes you wonder if it’s worth it, but would Apple be Apple if it wasn’t for these obsessions?

Apple leverages this obsession to create consumer loyalty. Looking at the phone industry loyalty data, Apple has by far the highest loyalty of any brand:  over 90% of their consumers love the Iphone. Brands like HTC, Blackberry and Sony have scores in mid 60s while Samsung has only 57% prefer the Samsung. Creating the tribe is great, but Apple delivers satisfaction to their consumers.

To be a Beloved Brand, you must love the work you do. If you don’t love the work you do, how do you expect your consumer to fall in love with your brand?   Brands that are stuck at the like stage settle for ok. Beloved Brands like Apple start at great and still push to make it even better. They are never satisfied.

The more loved the brand, the more valuable the brand. The tight emotional connection with the consumer becomes a source of power it can leverage whether that’s with consumers themselves to pay more, stay loyal or buy more products.   Plus, that power can be leveraged with retail partners, suppliers or competitors.  

In 1976, early in the life of Apple, Ronald Wayne decided to cash in his 10% of Apple for around $800. If he held onto it, that 10% would be worth $56 Billion. Mind you, we have all missed out on quite a few investment windows over the years. If you had put $100K into Apple in 2003, you would have around $10 Million!!! You wouldn’t be complaining about the economy, wondering who to vote for in the fall. But unfortunately, I didn’t know Apple would do so well.  Has the Apple brand peaked? Hardly: Apple has gained 81% in market cap the past 12 months. I missed that window as well.   

My hope is that momentum can continue. Not because I have invested money, but because I’m emotionally invested. I crave what’s next, even though I can’t even imagine where they will go.

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Finding your love in the art of being different.

I found this year’s Super Bowl ads were “pretty good”.While the Farmers ad stood out as amazing, the Budweiser ad was nice. But the rest of it while well executed feels like something we see on CNN all the time. Nothing was different.

Given the current economy, shouldn’t we be taking more risks to stand out rather than playing it safe right down the middle of the road? Let’s hope someone has the strength to do something different.

The classic launch formula: do the basic product concept testing, hope for a moderate pass. Then meet with sales and explain how this is almost identical to the launch we did last year, and builds on the same thing we just saw our competitor do. Re-enforce that the buyer hinted that if we did this, we’d get on the shelves pretty easily. Go to your ad agency, with a long list of mandatories and an equally long list of benefits they can put in the ad. Tell the agency you’re excited. They’ll tell you they’re excited as well. Ask for lots of options, as a pre-caution because time is tight and we’re not sure what we want. Just hope the agency clearly understood the 7-page brief. Test all the ads, even a few different endings, and then let the research decide who wins. That way, no one can blame you. Do up a safe media plan with mostly TV, some small but safe irrelevant secondary media choice. Throw in a web site to explain the 19 reasons why we launched. Maybe even a game on the website.

Ah, we have our launch. 

This is a guaranteed formula for success, because it follows last year’s launch to a tee and will be done hundreds of brands this year. Convince yourself, you had to play it safe because sales are down, margins are tight and you will do something riskier next year once this launch is done. What looks like a guaranteed success will likely get off to a pretty good start and then flat-line until it will be discontinued three brand managers from now.

At some point, to break through in a cluttered market, you’ve got to do something different to stand out:  now, more than ever. It might feel like a risky move, but it’s almost riskier not to take that chance.

Push yourself to be different. The most beloved brands are different, better or cheaper. Or not around for very long.  

There are four types of launches:

good-vs-different

Good but not different (our launch above) 

These do very well in tests mainly because consumers have seen it before and check the right boxes in research. In market, it gets off to a pretty good start—since it still seems so familiar. However, once challenged in the market by a competitor, it falters because people start to realize it is no different at all. So they go back to their usual brand and your launch starts to go flat. This option offers limited potential.

Good but different:

These don’t always test well: consumers don’t really know what to make of it. Even after launched, it takes time to gain momentum, having to explain the story with potential investment and effort to really make the difference come to life. But once consumers start to see the differences and how it meets their needs, they equate different with “good”. It begins to gain share and generates profits for the brand. This option offers long-term sustainability.

Not good and not different:

These are the safest of safe. Go back into the R&D lab and pick the best one you have–even if it’s not very good. The tallest of midgets. They do pretty well in test because of the familiarity. In market, it gets off to a pretty good start, because it looks the same as what’s already in the market. But pretty soon, consumers realize that it’s the same but even worse, so it fails dramatically. What appears safe is actually highly risky. You should have followed your instincts and not launched. This option is a boring failure.

Different but not that good

Sometimes we get focused on the product first: it offers superior technology, but not really meeting an unmet need. So we launch what is different for the sake of being different. It does poorly in testing. Everyone along the way wonders why we are launching. But in the end, consumers don’t really care about your point of difference. And it fails. The better mousetrap that no one cares about.

It will be up to you to figure out how to separate good from bad. One caution is letting market research over-ride your own instincts. As Steve Jobs said: “it’s hard for consumers to tell you what they want when they’ve never seen anything remotely like it. Yet now that people see it, they say OH MY GOD THAT’S GREAT”

We always tracked many numbers (awareness, brand link, persuasion etc), but the one I always wanted to know was “made the brand seem different”. Whether it is new products, a new advertising campaign or media options push yourself to do something that stands out. Don’t just settle for ok. Always push for great. If you don’t love the work, how do you expect your consumer to love your brand? The opposite of different, is indifferent and who wants to be indifferent.      

In case you need any added incentive: Albino fruit flies mate at twice the rate of normal fruit flies. Just because they are different! And the place where most ground hogs are run over is right in the middle of the road.  

Push yourself to find your difference

 

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

 

For a presentation on how to write a Positioning Statement, follow:

Other Stories You Might Like

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