How to Guide for Marketers

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

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

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

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

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

Here’s a solution for Brand Leaders 

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

1.  Where is your consumer?

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

2.  Where is the Brand?

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

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

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

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

What I recommend you do:

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

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

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

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

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

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

The media math from a client’s view

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

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

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

 

To see a training presentation on getting Better Marketing Execution: 

Beloved Brands: Who are we?

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

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

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

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Beloved Brands Explained

Consumer Insights are secrets that we discover and use to our brand’s advantage

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There is a difference in selling to someone and motivating someone to buy.

When you just sell, you start with the product and you don’t really care who you sell to. Whoever comes through the door, you start talking to them about the features of the product and look to close the deal.
Motivating someone to buy starts with the consumer not the product. Instead of selling to anyone, you have to target those consumers who are already motivated by what you do. You have to matter the most to those who already care the most. You have to understand them, to match your brand up to their needs, wants and desires.

You have to get in the consumer’s shoes, observe, listen and understand their favorite parts of the day. You have to know their fears, motivations, frustrations and desires. Learn their secrets, that only they know, even if they can’t explain. Learn to use their voice. Build that little secret into your message, using their language, so they’ll know you are talking to them. We call this little secret the consumer insight. When portrayed with the brand’s message, whether on packaging, an advertisement or at the purchase moment, the consumer insight is the first thing that consumers connect with. When consumers see the insight portrayed, we make them think: “That’s exactly how I feel. I thought I was the only one who felt like that.” This is what engages consumers and triggers their motivation and desire to purchase. The consumers think we must be talking to them, even if it looks like we are talking to millions.Strategic Thinking 2016.062

Consumer Insights are secrets that we discover and use to our brand’s advantage

It is not easy to explain a secret to a person who doesn’t even know how to explain their own secret. Try it with a friend and you will fail miserably. Imagine how hard it is to find that secret and portray it back to an entire group of consumers. Safe to say, consumer insights are hard to find.

The dictionary definition of the word Insight is “seeing below the surface”. To get deeper, when you come across a data point, you have to keep looking, listening asking yourself “so what does that mean for the consumer” until you have an “AHA moment”. You can start with the observations, trends, market facts and research data, but only when you start asking the right questions do you get closer to where you can summarize the insight. Look and listen for the consumer’s beliefs, attitudes and behaviors that help explain how they think, feel or act in relationship to your brand or category. Because the facts are merely on the surface, you have to dig, or you will miss out on the depth of the explanation of the underlying feelings within the consumers that caused the data. Think beyond the specific category insights and think about life insights or even societal trends that could impact changing behaviour.

Good insights get in the SHOES of your consumer and use their VOICE. We force every insight to be written starting with the word “I” to get the Marketer into the shoes of the consumer and force them to put the insight in quotes to use their voice.

Here are two examples of how using Consumer Insights drove business results.

  • Working in the quit smoking business, our starting point was: “Studies show that people try to quit cold turkey 7x before reaching for a smoking aid to help them quit.” That’s not insightful. That’s just a lack of deep thinking. Only when we watched, listened and dug deeper could we feel the consumers pain. When you hold a 2 hour focus group with smokers and tell them “you can’t smoke for 2 hours and we’re going to talk about smoking the entire time” you can see them getting crankier and crankier in the second hour. What we learned is smokers are actually scared to quit, because they knew they’d either fail or lose friends. The new insight we came up with was: “I know I should quit. I’ve tried to quit so many times, it’s ridiculous. I’m not myself, I’m grouchy, irritable and feel out of control. Quitting Smoking Sucks.” When we share this secret with a smoker and they say “yup, that’s exactly how I feel”. The ad they made was a Flight Attendant losing her mind trying to quit smoking, and was the highest tested ad in the company’s history.
  • Working with a bank who was trying to gain a competitive advantage by staying open late, our starting point was this fact: “Recent research shows if a Bank were to open till 8pm, that customers would use the bank 3.4x more each month and with added transactions that would mean $26 more for each customer, and nearly $32 Million in revenue overall.” That’s not insightful. That’s just a lack of deep thinking. Consumers would resent a bank if they knew they were only opening late so they can make more money from them. When we started to think like the consumer, we landed on this insight: “I am so busy driving my kids around, I can never get to the bank during banking hours. I wish there was a bank that worked around my life, rather than me working around the banks’ life.” When we share this secret with a busy mom, she says “that’s exactly how I feel”. The ad they made with this insight had a woman doing a head stand on a yoga pillow with the caption “I do my banking between yoga and taking my kids to soccer practice”. The ad was the highest performing ad in the bank’s history.

Knowing the secrets of your consumers is a very powerful asset. An insight should ONLY connect with the audience you are talking to. I hate when people say “we don’t want to alienate others”. The best brand communication should be like whispering an inside-joke that only you and your friend get. Yes, when we target, we actually do want to alienate others. That’s the only way we will truly connect. Your ability to harness those secrets into creating insights that are arresting or intriguing, fuels the creative spirit as you tell your brand’s story, launch new innovation and move the consumer through to the purchase moment.
After all, there is one source of revenue, not the product you sell, but the consumers who buy. In a tough competitive market, your ability to harness the secrets of your consumers that only you know, is a huge potential competitive advantage.

Done right, if you can make consumers want to buy, you will never have to sell.

Here is the Nicoderm ad based on the consumer insight:

 

We run brand training workshops on everything connected to marketing. Here’s our workshop on Brand Positioning:  

 

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. To learn more about Marketing, continue to visit beloved-brands.com where you will have access to stories on everything connected to brand management. 

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Beloved Brands in the Market

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

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Barbie faced major declines

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

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

 

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

 

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

Here are five lessons for Brand Turnarounds

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

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

 

Beloved Brands: Who are we?

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

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

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

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

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How to Guide for Marketers

5 key success factors at the CMO level

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CMO slides.001At the Chief Marketing Officer (CMO) level, success comes from your leadership, vision and ability to get the most from your people. If you are great at your job, you might not even need to do any marketing, other than challenge and guide your people to do their best work. Steer on principles, values and strategy. But let your people equally challenge you from the bottom up. Especially with the shift to media that did not even exist when you started your career. Your greatness comes from the greatness of your people. Once you figure out the magical leadership equation that better people create better work, you’ll be able to deliver better results. Invest in training your people as a way to motivate your team and keep them engaged. At the end of meetings, use teaching and mentoring moments to share your wisdom. Equally, you represent Marketing to the rest of the organization. You must challenge the other functions, challenging your sales peers on ensuring the channel strategies deliver the purchase moment, challenging HR peers to ensure that the organization can deliver the expected brand experience, challenging R&D to ensure the innovation pipeline is strong and challenging your Finance peers to ensure the strategy has adequate resources to deliver the results. You also have to challenge your CEO to push for the right brand strategies and highly creative executions. You have to stay fresh, on top of trends with consumers, channels, competitors, media and in most cases the economic conditions of various geographies around the world.

Quintessentially, rule #1 is you have to make the numbers. 

As the CMO, your main role is to create demand for your brands. You are paid to gain share and drive sales growth to help drive profit for the company? The results come from making the right strategic choices, executing at a level beyond the competitors and motivating your team to do great work. But how you do it, and the balances you place in key areas are choices you need to make.  Making the numbers gives you more freedom on how you wish to run things. Without the numbers, the rest might not matter.

Five success factors for CMO roles:

1. People come first

Focus on the People and the Results will come: The formula is simple: the smarter the people, the better the work and in turn the stronger the results will be. You should have a regular review  of the talent with your directors. CMO slides.002I would encourage you to ensure there’s a systemic way to get feedback to everyone on the team, preferably on a quarterly basis. Invest in training and development. Marketing Training is not just on the job, but also in the classroom to challenge the thinking of your people and give them added skills to be better in their jobs. Marketing fundamentals matter. The classic fundamentals are falling, whether it is strategic thinking, writing a brand plan, writing a creative brief or judging great advertising. People are NOT getting the same development they did in prior generations. Investing in training, not only makes them better, but it is also motivating for them to know that you are investing in them.  

2. Be the visionary

You are the Mayor of Marketing: Bring a vision to the role. Look at what needs fixing on your team, and create your own vision statements that are relevant to your situation. Bring a human side to the role. Get up, walk around and engage with everyone on your team. It will make someone’s day. Your role is to motivate and encourage them to do great work. Influence behind the scenes to help clear roadblocks. Know when you need to back them up, whether it’s an internal struggle, selling the work into your boss or with a conflict with an agency. Do they love it? When they put their great work up for approval, and it’s fundamentally sound, approve it. Don’t do the constant spin of pushing for better, because then you look indecisive. 

3. Put the spotlight on your people

Let them own it and let them Shine: It has to be about them, not you. Do not be the super-duper Brand Manager. It is not easy to balance giving them to freedom to lead you and yet knowing when to step in and make a decision. By making all the decisions, you bring yourself down a level or two and you take over their job. Instead of telling, you need to start asking. Ask good questions to challenge or push your team into a certain direction without them knowing you’re pushing them is more enlightening than coming up with statements of direction. Challenge your team and recognize the great work. It might be my own thing, but I never said: “thank you” because I never thought they were doing it for me. Instead I said: “you should be proud” because I knew they were doing it for themselves.  

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4. Be a consistent, authentic, approachable leader

People have to know how to act around you. You have to set up an avenue where they are comfortable enough to approach you, and be able to communicate the good and bad. A scary leader discourages people from sharing bad results, leaving you in the dark. Open dialogue keeps you more knowledgeable. If you push your ideas too far, you could be pushing ideas from a generation too late. Get them to challenge you. Inconsistent behavior by a leader does not “keep them on their toes”. It inhibits creativity and creates tension. Be consistent in how you think, how you act in meetings and how you approve. Leadership assumes “follower-ship”. Creating a good atmosphere on the team will make people want to go the extra mile for you. Knowledge makes you a great leader, and it starts with listening. You will be surprised how honest they will be, how much they will tell you.

5. Run the process and the system

While your people run the brands and the execution, you should run the P&L and essentially run all the marketing processes. You have to run the P&L and make investment choices. Bring an ROI and ROE (Return on Investment and Effort) mind set to those decisions. These choices will be one of the essentials to making the numbers and gaining more freedom in how you do the job. In terms of process, it’s always been my belief that great processes in place—brand planning, advertising, creative briefs—is not restrictive but rather provides the right freedom to your people. Get your people to drive all their creative energy into great work that gets in the marketplace, not trying to figure out what slide looks really cool in the brand plan presentation.  To read more about running the Planning process, click on this hyperlink: 

How to lead the entire Brand Planning process on your business

The head of Marketing role can be very lonely.

I remember when I first led a Marketing team, I found it surprisingly a bit lonely. Everyone in marketing tries to be “on” whenever you are around. And you don’t always experience the “real” side of the people on your team. Just be ready for it. The distance from your new peers (the head of sales, HR, operations or finance) is far greater than you are used to.Your peers expect you to run marketing and let them run their own functional area. They have their own problems to deal with, and likely see many interactions as a win-loss for resources. The specific problems you face, they might not appreciate or even understand the subtleties of the role. Your boss gives you a lot of rope (good and bad) and there’s usually less coaching than you might be used to. It is important for you to have a good mentor or even an executive coach to give you someone to talk with that understands what you’re going through.

As a CMO, you have to know that better people leads to better execution, which leads to stronger brand results

 

 

We will make your team of brand leaders smarter

While you might think that having a great product, the right strategy and a winning TV ad will drive your brand, the long-term success of your brand is dependent is how good your people are. If you have great Brand Leaders, they will be on top of your business, make the necessary strategic course corrections, create better executions that connect with consumers and drive profitable growth for your brand.

One of the best ways to drive long-term business results from your brands is to ensure you have a strong marketing team in place. At Beloved Brands, we can develop a tailored program that will work to make your team better.  Regardless of industry, the fundamentals of Brand Leadership matter. In terms of connecting with your people, Training is one of the greatest motivators for teams and individuals.  Not only do people enjoy the sessions, they see the investment you’re making as one more reason to want to stay. They are focused on their careers and want to get better.  If you can be part of that, you’ll retain your best people.

The Brand Management courses we offer:

At Beloved Brands, our training center offers 10 selected courses to get you ready to succeed in Brand Management.

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Beloved Brands: Who are we?

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

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

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

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

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How to Guide for Marketers

Playing to win in the right EMOTIONAL space

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How loved is your brand?

We believe a brand’s source of power comes from the emotional feelings that it generates with consumers. 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.

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At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans. The farther along the curve, the more power for the brand. It is 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.

Too many times, Brand Leaders ask their agency for emotional advertising, without even understanding what emotions they want. Usually the same Brand Leader is handing their agency a brief and a brand positioning statement that is strictly functional. And somewhere on that same brief, we see a very usual tone of “trusted, reliable, liked, authentic and optimistic”. You should realize that when you can’t figure out the emotional zone to play in, brands end up with these words on the brief. We will show you below that trust, smart, optimistic, liked all play in different emotional zones. When you tell the consumer too many things, they shut you out as a confused brand they can’t figure out.

Just as Brand Leaders should look to own one rational benefit, they should also own ONE emotional benefit. Before asking your agency to make you an emotional ad, do the homework to understand what emotional zone you can win.

Start with the Consumer and Map out their Emotional Insights

Beloved Brands know who their customer is and who it is not. Everything starts and ends with the Consumer in mind. To demonstrate knowledge of that target, defining consumer insights help to crystallize and bring to life the consumer you are targeting. The dictionary definition of the word Insight is “seeing below the surface”. Positioning 2016.019When insight is done right, it is what first connects us to the brand, because we see ourselves in the story. We see an ad and say “that’s me”. The best way to get consumers motivated is to tap into their need states, by understanding what frustration points they may have. We call these consumer enemies. While products solve regular problems, beloved brands beat down the enemies that torment us every day. What are your consumer’s frustration point that they feel no one is even addressing? To paint the picture of our consumer target, you should use Consumer Insights to help to crystallize and bring to life the consumer you are targeting. The dictionary definition of the word Insight is “seeing below the surface”. Too many people think data, trends and facts are insights. Facts are merely on the surface—so they miss out on the depth–you need to bring those facts to life by going below the surface and transforming the facts into insights. Insight is something that everyone already knows and comes to life when it’s told in such a captivating way that makes consumers stop and say “hmm, I thought I was the only who felt like that”. That’s why we laugh when we see insight projected with humor, why we get goose bumps when insight is projected with inspiration and why we cry when the insight comes alive through real-life drama. When Consumer Insights are done right, we get in the shoes of the consumer by starting the insight with the word “I” and we use the voice of the consumer by putting the insight in quotes.

Finding your brand’s emotional benefit

The best way to work the Consumer Benefits Ladder is to hold a brainstorming session with everyone who works on the brand so you can:

  • Leverage all the available research to brief the team, helping define the consumer target and get all the consumer insights and need states out.
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  • List out all the features that your brand offers, and the brand assets it brings to the table. Make sure that these features are competitive advantages.
  • Find the rational benefit by putting yourself in the shoes of the consumer and seeing the brand features from their eyes: start asking yourself over and over “so if I’m the consumer, what do I get from that?”. Ask up to 5 times and push the answers into a richer zone.
  • Then find the emotional benefit by asking “so how does that make me feel?” As you did above, keep asking, and you’ll begin to see a deeper emotional space you can play in and own.

This tool is designed to get you out of talking about yourself (your claims) and gets you talking about what the consumer gets (the benefits)  For instance, no one really cares that a golf club has 5.7% more torque. When you ask what do i get from that, the better answers are longer drives or lower scores or winning a tournament. These are rational benefits. When you ask how does that make you feel, the emotional space is confidence and optimism. This is the emotional benefit. Below, we lay out 3 examples of how to turn your feature into a rational benefit and then an emotional benefit.

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People tend to get stuck when trying to figure out the emotional benefits. It seems that not only do consumers have a hard time expressing their emotions about a brand, but so do Brand Managers. Companies like Hotspex Research have mapped out all the emotional zones for consumers. I’m not a researcher, but if you’re interested in this methodology contact Hotspex at http://www.hotspex.biz  Leverage this type of research and build your story around the emotions that best fit your consumer needs.  Leveraging the Hotspex work, we’ve mapped out 8 zones in a simplistic way below:

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Within each of the zones, you can find emotional words that closely align to the need state of the consumer and begin building the emotional benefits within your CVP.  It almost becomes a cheat sheet for Brand Managers to work with.  How it works is when you figure out which ONE emotional zone you think your brand can own, and just like a rational position, you can’t try to own them all.

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Examples of bringing emotion to life

If we think of the world’s leading  companies, Apple owns Freedom while Google owns Knowledge and they are at their best when they stick to those positioning statements.

Here’s how well Apple has brought “Freedom” to life.  You’ll not really hear any functional benefits within this type of Ad.  Poetry matched against the beauty of the world is a perfect demonstration of FREEDOM–making Apple seem interesting, exciting and alive.

While knowledge might sound boring, by sticking to that strategy, here’s how well Google has done. Embedded within the story line, Google is used as an enabler of knowledge–making you smarter, wiser and competent.

 

At Beloved Brands, we run a workshops on how to find your Brand Positioning. Click on the Powerpoint presentation below:

 

Beloved Brands: Who are we?

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

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

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

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Beloved Brands in the Market

The delusion of mergers hurts the brands

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6-merger-slide1-304-1M&A (Mergers and Acquisitions) talk around the Kraft-Heinz deal has dominated the business news. For most of us outsiders, it seemed like a surprise. We knew something was up with Heinz after the purchase by 3G Capital private equity group. But for Kraft, it seems like there has already been 30+ years of mergers starting with Kraft and General Foods in 1989, then adding Nabisco and Cadbury only to then split those two companies back out into two separate companies: Kraft and Mondelez. Since the split, the Kraft business is flat, the Mondelez continues to decline, likely both companies hurt by the changing diet of consumers as they cut high fat, high sugar products from their diet.

During my 20 year career, I went through three mergers. Each mergers used a different “merger” rule: one went fast, one went slow and one went clumsy. They say it takes 2 years for a merger to work. From my experience it takes longer.  Prior to the merger, everyone wastes a lot of time speculating what is going to happen, lots of lunch table chit chat and good people leave in anticipation. Headhunters are now pouncing on the people at Kraft. When the merger finally hits, you spend a lot of time on things not related to growing the brands. You have to train senior leaders above you and sales people beside on the “new” brand. Usually, everyone is trying to appear as smart as they can, but in reality for the next year, they ask the most elementary questions. As people jockey for power, some the brightest and best people I’ve ever worked with turn into school children–gossiping, maneuvering, changing their personality to fit in with key people, and some feeling/appearing demoralized and defeated.

Most M&A research studies estimate that the overall failure rate is at least 50 percent. In surveys with executives conducted in recent years, the percentage of companies that failed to reach the goals of the merger was 83 percent. With those statistics known, you would expect leaders to avoid the M&A activity, yet the trend of mergers and acquisitions has been constantly increasing over the past 20 years. Moreover, the number of mergers and acquisitions and the sums of money invested in them have shattered the record almost every year! Even though acquisitions cost billions, the purchase is much easier to do than executing merger. We see the lack of planning, the realization that synergies are not what you expected, the major differences in the culture becomes clear, negotiation assumptions and mistakes prove costly, and quick decisions made impact the overall motivation.

Here’s a list of the top mergers in history

M&A

The reasons most M&A’s happen is the same reason they fail

  • Our business is struggling, their business is doing well: So if your business is struggling, you need a turnaround, not the distraction from a merger. The effort undertaken during a merger will only make your business struggle even more. And you acquired a high growth, which means you’re likely buying high at a price premium. That will be hard for you to realize. This premium is generally so high that even successful management activities after the acquisition do not provide ROI (return on investment) and do not remedy the valuation “error.” The only thing left to do is to cut costs, both in people and marketing usually resulting in the struggling business doing even worse and the newly acquired business starting to flatten out.  
  • Allow us into new markets (new categories, new channels, new geographies). Yes, now your newly merged company will be in new markets, but it doesn’t necessarily translate that your brands will gain easy entry into those markets. At the shelf, retailers may hold your companies share of shelf so that means if you want your new brand in, you have to take out skus of your newly acquired brand. All that means is that as your brand takes time to gain any momentum in the new market it is entering, any gain is offset by a dramatic loss of sales of the brand you took off the shelf. A second risk to entering into markets is the merger may have cost the talent with the knowledge of the new market–and now inexperienced leaders are making decisions about markets they know very little about. With the Heinz-Kraft deal, 60% of Heinz sales are beyond North America, but 2% of Kraft. They have already tried to spin this great myth that this opens up new markets for the old Kraft brands. I want to see them try to sell Velveeta, Jello or Cheez Whiz in France or Italy. Sounds good on the books, but not in reality. 
  • Imagine the power of us together: the size, clout and efficiencies. In a business driven or dominated by retail, that power can certainly help. Where there are large manufacturing or union costs, the efficiency can be leveraged for lower costs. layoff-in-newspaperBut when all you have is efficiency, it becomes obsessive and you look everywhere to cut costs in order to pay off the merger. The first round is easy: close redundant plants and warehouses, eliminate duplicate sales people. And you see results. But since every business must show incremental profit to show the merger a success, the second round of synergies that are harder to show. Now you cut brand support–reduce marketing spend, starting re-organizing teams to reduce people, squeeze suppliers for cost reduction. It can work in the short term, but while the organization becomes obsessive about synergies, who is focused on the growth? If the top-line doesn’t grow,you will eventually run out of places to cut. And becoming this huge conglomerate can make you slow to respond, stodgy, risk-averse and ripe with bureaucracy. This starts to sound like the old Kraft General Foods of the 90s and early 2000s, who closed successful businesses, got rid of some great talent through the years and are known as one of the most risk-averse conglomerates around. My big worry about the new Heinz-Kraft is how to make sure the new company can move with the agility needed in this ever changing marketplace. 
  • We will acquire a technology or expertise we don’t have. At first, it makes sense that you can buy the technology or expertise of your competitor, but likely it comes at a premium with no guarantee for success. If it’s a technology buy, you can certainly use it in your own product since you bought it. But we like to say that brands have four choices:  better, different, cheaper or not around for very long. Now you’ll have both brands appearing almost the same. It’s very challenging to run two brands in one category–I know from experience. The biggest issue is that the two brands start to resemble each other to the point of duplication–if this worked here why won’t it work there. The same technology under the hood, the same distribution strategies and the same ad agency produces similar ads. The best case study for this was when Ford bought Mazda and used identical parts for cars yet tried to appeal to different targets at different price points. On the other case, when you acquire talent, you also acquire a distinct culture you need to make sure you continue. There are many cases where companies purchased an innovative R&D team and failed because that team was mis-managed and lost that innovative spirit. Case in point was Ford’s purchase of Volvo, almost destroying the brand’s spirit of innovation in safety. Both the Volvo and Mazda brands did much better after escaping Ford. Oddly enough, is it any coincidence that the Ford brand is now one of the best performing brands in the market?  It will interesting to see what happens with Apple and Beats by Dre as that deal highly favored Beats, and it’s Apple’s first real attempt at M&A. 
  • Ego Play: Many times the personal interests of senior management are not always aligned with those of the stockholders. The CEO and management team see personal advantages in the merger, such as greater empowerment and control of a larger organization, improvement of the social-management status, and higher salaries and benefits. With wide-eyed optimism, they convince themselves that they can do a better job managing the brands they acquire, they tell themselves they can find more growth and cut costs at the same time. Ego can get in the way of good strategic thinking. Companies can get in bidding wars and corporate ego sees the price get out of hand. They get so deep into the deal, they have to have it–at all costs. In any transaction, when things get emotional the seller wins.
  • Our cultures are a perfect match: Very rarely do we hear this as the primary reason. Yes, we hear it in the press release and at the opening day rally, but as many of us have gone through a few of these, we know that 5 senior leaders meeting 5 other senior leaders and working out a deal is not usually a good indicator that the cultures are a good fit. Even if they say so. Business culture is an odd thing and should not be under-estimated. Usually a merger never allows the due-diligence to find out about whether the cultures fit.  

mergers-acquisitions-22744864Who benefits from Mergers

  • The brands don’t benefit. And the consumer misses out as well. With a distracted company sorting through the merger and trying to make the numbers, it’s usually innovation that gets delayed or cut. With demand for synergies, production costs/warehouse costs likely impacts ingredient choices and freshness options. Sadly, many times the product just isn’t the same as it used to be. 
  • Brand Leaders don’t benefit. They have to re-work and re-work plans for new management. And usually the discussions are a step back in the degree of strategic challenge the first year or two. You get questions like “so tell me how this brand works?” or “have we always done it that way?”.  As synergies happen, we see options like re-structuring the marketing team to group brands together. That means less attention can be paid to each brand or the details beneath. Brand budgets are scrutinized and cut–usually sticking to the safest options in the plan and eliminating creative ideas that that carry risk.  
  • The HR team doesn’t benefit. While they are seen as the “evil group” in a merger, they are usually under the most pressure to cut head count and deliver the bad news, while coincidently being challenged to find a new culture from these two companies that don’t fit nicely together.  This group bears the brunt of the merger. 
  • Shareholders: The statistics show that the shareholders of the seller benefits more than the shareholder of the buyer. Considering, mergers can come out of nowhere fast, this is just a crap shoot as to which company stock you hold. But it really does speak to the premium paid in these deals. As they say in Real Estate, never buy high. 
  • Investment Banks and McKinsey Consulting: At the whim of the leaders, both groups receive huge fees for doing the deal and executing the merger plan. Oddly enough, neither group seems to be at risk or on the hook if the deal or the merger go bad. They just keep moving on to the next deal. 
  • Senior Leaders in the short-term. With the approval to move forward, they increase their status within every touch point–with retailers, with peers, with agencies and in the business community. They likely benefited financially from the merger–either higher salary bump or bonuses. In the longer term, they are on the hot seat to make this deal pay off, and with a 50% failure rate, they likely won’t last. 

Yes mergers are as much of a reality as baseball trades. Like in baseball, managers think we can do more with that asset (brand or player) than they are doing. But more and more, just as the best sports teams are winning because of the organic development of their players, the same holds true for brands. Focus on growing your brands, choosing the right consumer driven strategies and executing with intelligence and passion. Stay focused on your own business instead of drooling over others.  

While the grass always looks greener on the other side of the fence, make sure your own business is in good shape.

 

To see a more in depth presentation please read the powerpoint presentation below which is a Workshop to show brand leaders how to create a beloved brand so they can generate more power and profit for their brand.


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.

 

Beloved Brands Graham Robertson

Beloved Brands Explained

How severely damaged is the Toronto Maple Leafs brand?

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leafs-badI think the Leafs should be a little worried about the health of their brand. While they have been bad for the entire century so far, this year feels even more disconnected and puts them at risk, if things are not fixed. There are major signs of brand health issues, which usually shows up in advance of any issues with brand wealth. But I think with a quick shot of the optimism drug over the summer, the crazy Leaf fans will be hooked again.

Here’s the brand health issues that should raise concern:

  • Leaf game not shown on TV?  Last Saturday, Hockey Night in Canada decided not to air the Leafs game on the main network for the first time in forty years. With TV media, there are so many games on TV and on-line, that the big Saturday night game is not the same. In fact, the biggest risk now is that I can see 82 games of any team I want.  
  • No sell out? This past Monday, the Leafs failed to sell out for the first time in 15 years. While giving up a little revenue for not selling out, the bigger risk here is that if tickets are going for $30, then it takes away the mystique of going to the game. The good news is the Leafs have announced they won’t raise ticket prices. I love that they actually felt compelled enough to announce this, which shows the true power of the brand.  
  • Fans cheering for the Leafs to lose: Not only are the Leafs tanking this season to get a good draft pick, the fans are cheering for the opponents so that the Leafs do lose. If the Leafs are bad again next year, the fans may again cheer against the Leafs.  If this goes on for 5 years, do these fans go find another team?
  • Fans are mad at the current team: Fans are so enraged at the current crop of Leafs that they continue to boo the best players and have thrown sweaters on the ice in dis-respect of the team. The players took it upon themselves to “not salute the fans” as their retribution. It’s never good to go to war with the fans, when the only thing you have is fans. 

The Leafs brand is on pause this year. The fans are on hold, waiting to see what happens next. I believe if the Leafs get rid of a few players, draft a big name (even if it’s not McDavid) and get a big name coach, they would create the perception that they are moving in the right direction. As we discuss below, the Leafs are not really focused on winning the cup, but rather giving the illusion and optimism that they “could” win the cup. 

The success of the Leafs brand defies logic

When we look at the most valuable sports franchises around the world, whether it’s Ferrari, Manchester United, Real Madrid, New York Yankees, Los Angeles Lakers or New England Patriots, they usually have one thing in common:  THEY WIN.  And in most cases, they win a lot. We’ve never really found out what happens to those brands when they lose.  And then there’s the Toronto Maple Leafs who recently joined the ranks of the most valued brands, now worth an estimated $1.2 Billion. 

  • The last time the Leafs won a hockey championship was 1967, when Lyndon Johnson was President, The Beatles were releasing the Sgt Pepper’s album and Wal-Mart only had 24 stores (all still in Arkansas). It was even 8 years before Justin Bieber’s mom would be born.
  • The Leafs have made the playoffs once since 2004. None of their current players were even in the league in 2004. And they are the only NHL team not to make the playoffs during those years.
  • There were two major work stoppages in the NHL in 2005 and 2012–one wiped out an entire season, the other a half season. In both of those years, the value of the Leafs jumped up. And yet, since 2004, the value of the Toronto Maple Leafs has gone up from $280 Million to $1.2 Billion.

So clearly for the Leafs, actually playing and winning the games doesn’t really matter to value of the Leafs brand. Yes, Apple’s market value has gone up at a faster pace, but they’ve launched iTunes, iPod, iPhone, iPad and the Macbook during that time.  

Most great brands have a vision for the future: what’s the Leafs brand vision?

Like any sports team, the Leafs will state their vision of “we want to win the Stanley Cup”. It sounds good. It’s what you’re supposed to say. Proof for what the real vision might be in the fact that for past 15 years they were owned by a pension fund and they rewarded their President financially, not for how the Leafs did on the ice, but how well the Leafs did off the ice. And now they are owned by a media conglomerate who sees the Leafs as content to get the millions of insane Leafs fans watching in person, on TV and on-line. I believe a more appropriate Brand Vision for the Leafs is “to be the most beloved sports franchise” or even a stretch “to be the most valued sports franchise in the world”. 

Does winning matter?  Yes, but it’s a strategy to help the vision of being the most loved or most valuable sports franchise. It’s the “how” you get to the vision, but not the vision itself. The hook is to appear that you are doing the right things to try to win the cup–enough to keep the fan base engaged.

Holding the Leafs up to the principles of a beloved brand

I once had an economics Professor who said “economics proves that what happens in real life can actually happen in theory”. Well, I usually use the Apple brand to prove how the theories of Beloved Brands work, but let’s take the Leafs brand on a test run and see how they line up.

First, we believe that consumers connect with brands based on a “big idea”. That’s the tough question for the Leafs: what is their big idea? Is it the heritage/history, being the home team of the biggest hockey market or the great underdog story?  At times, it’s been the “loveable losers”, where the mediocre/good players like Palmateer or Vaive become legends in the community. But that’s still not enough to make the brand that connected. The big idea during Steinbrenner’s Yankees was “we we will do whatever it takes to win–at any cost” where as the Montreal Canadiens are all about “we maintain the pride and dignity of history and we’ll do what’s right in our pursuit of victory”. It’s hard to truly see a big idea to connect with the Leafs. While most fans have this nagging feeling in the back of their mind that the Leafs will never win in their lifetime, I believe they cheer for the Leafs “to stay engaged enough just in case there is that once in a lifetime chance to win the cup”. So the Leafs are more like a potential “once in a lifetime eclipse” that fans want to see or even a lottery ticket. The only other sports brand like the Leafs are the loveable Chicago Cubs.  If the Leafs are that “eclipse”, I’ve always debated that if they ever do win the Cup, would more people keep watching or would people stop watching. The Toronto Blue Jays may prove that once they won the World Series, the Toronto fans were like “great, so what’s next” and moved on. My guess is that I’ll never know the answer to this question, as I don’t expect the Leafs to ever win the cup.  

Once you have the big idea for your brand, you need to map out the 5 Brand Connectors to help deliver that big idea: the brand promise, strategy, brand story, freshness of Innovation and a culture that helps deliver the promise.  

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Arguably, the Leafs might be defying all 5 of these sources of connectivity. 

  • Brand Promise: Most beloved sports teams can say “we promise to deliver an on-field team that will always be competitive enough to win a championship”. The Yankees, Man U, Ferrari, the Canadiens and Real Madrid can easily say that. The Leafs promise to “win a championship” feels hollow. If that was their promise, the brand would be a complete failure. Fans would walk away and the value of the team would fall. Well, at least for a normal team. When fans get excited about the Leafs, the world feels better, they are happy and optimistic for the future. The real promise for the Leafs is “we’ll make you feel good even if the pursuit of victory is greater than the victory itself.” Maybe if you have that underdog spirit in your own life, you see hope in the Leafs where no one else sees hope. But the problem for this year is that when they lose, that optimism comes crashing down. A friend of mine who is a Leafs fan had a baby a few weeks ago, and posted on Facebook “when do you break it to the kid that the Leafs won’t win a Championship in his life time?” Sadly, that kid will be a Leaf fan. He now bleeds blue. And will pay thousands of dollars towards the leafs coffers over his life time. 
  • Strategy: In terms of players, the Leafs have relied the last 15 years on signing free agents. But in managing the brand, they focus on hyping up the players, they build up the optimism at the beginning of each year and keep the fan base engaged with constant communication and stay reasonably competitive to at least give hope for getting in the playoffs. The Leafs manage to keep the fan base hooked by constantly feeding them optimism. The problem this year is that they’ve fallen so far out of the playoffs the talk of re-build has the fans confused. Those players they’ve hyped turned out to be jerks, who won’t salute the fans, refuse interviews and don’t even try on the ice. It’s hard for the Leafs to hype players that aren’t well liked. 
  • Brand Story: As I was growing up, the Leafs always successfully connected the past (Johnny Bower, Bobby Baun or Daryl Sitler) to the current team. The stories stressed the values of toughness, hard work and how the underdog always over-achieved in the face of adversity. That story fit nicely to the Leaf teams of the 90s with Doug Gilmour, Wendel Clark and Felix Potvin who went to the semi finals in back to back years. However, today’s current Leaf teams are the opposite:  over-hyped, over-paid and under-achieving players like Kessel and Phaneuf, certainly not aligned to the values of toughness and hard work. 
  • Freshness: For a sports team, freshness comes through the signing of new players and then building optimism around those players. The problem is the salary cap and the current roster has the team trapped. The tanking to get a draft pick has been a good strategy as it will provide someone (McDavid or even Strome) that they can build around. You will see this summer that the Leafs will build all the optimism of a rebuild around the youthful team. And fans will buy into it.   
  • Experience: There are only two ways to experience the brand–either in person or on TV. Going to a Leaf game has a buzz and excitement to it. The tickets are usually so expensive that it is so rare for the average person to get to go. The TV games are rooted in history: “Hockey Night in Canada” at 7pm has been one of the highest rated TV shows since the 1950s. And so this year, we’ve now seen two things happen. Last Saturday, for the first time since the early 1970s, the Leafs were not shown on Hockey Night in Canada, with the CBC choosing the Montreal Canadiens game. It’s all about ratings, even though the network that shows the games owns the Leafs. And this past Monday, the Leaf game wasn’t a sell out, and on StubHub you can easily get tickets for $25. So while this is your chance to finally go to a game, no one really wants to even go.

How the Leafs make money

Like any brand, there are really only 8 ways to make more money:  premium pricing, trading up on price, lower cost of goods, efficient spending, stealing share. getting loyal users to use more, entering new markets and finding new uses for the brand.

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Pricing: Ticket prices for the Leafs are the highest in the NHL–an average of $375 over 42 home games, which is three times the average ticket price for Detroit Red Wings or even six times the price for Tampa Bay. Getting tickets to a game is nearly impossible for the average fan. Every game is a sell-out. It’s a 40 year wait for Leaf seasons tickets. These end up in people’s wills. The ACC also uses strong luxury box and platinum ticket sales to trade the business consumers up on price–so not only are they paying $1,000, they also have to order enough food and drinks to support a luxury box. If the Leafs look at an extended downturn on play or even a 5-year turnaround, it likely won’t impact average price but it may impact the # of sell outs–especially as the Leafs just experienced their first non-sellout in 15 years.  

Costs: Control of costs works in the favour of the Leafs. The NHL has a salary cap that holds teams to $60 Million per year, which is 6% of the team’s brand value. For the other hockey teams worth $200 Million, that’s 30% of their brand value. That’s a huge competitive advantage for the Leafs–still defies why they can’t win. There’s no real need for “marketing costs” as every game is on TV, with normal exceptionally strong ratings. While the ratings are only in Canada, they are such a dominant ‘country brand’ that it makes the local market all of Canada, which means it has access to 30 Million people.The Leafs receive added earned media with 2 sports TV stations, 3 radio stations and 3 major Newspapers constantly covering every move the team makes. Both sports stations hold a daily live show at lunch time. 

Share: The Leafs dominate the media landscape but end up sharing that revenue with the NHL. It’s estimated that 70% of the league revenues come from Canada–my guess is that most of that comes from the Leafs. For the Leafs merchandise sales are very strong. The Leafs announced it was changing its third jersey to be a replica of the 1967 jersey. Which means all those fans have to go out and drop another $129 on a new jersey. This past year, the Leafs have added a sports bar to the ACC, just outside the arena that has hundreds of TVs and seating for two thousand people. With a roster currently filled with unpopular players, the Leafs need a few popular players for the fans to put a name on the back to really drive up the merchandise sales.

Market Size: The Leafs have expanded the size of the market by driving sponsorship and even creating Leafs TV. The team’s sponsorship drive is incredible–carrying an astounding 50+ sponsors on its roster–including separating out the banking category into Core Banking, Wealth Banking, Credit Card banking, which allows them to get money from three separate banks. Sponsorship is a money machine. The Leafs TV expands the brand for the most loyal followers to connect even more. The Leafs have also launched a bar attached to their stadium that holds another 2,200 fans who drink and eat during the 2 and 1/2 hour game. If the crowd shrinks or the Leafs lose early each time, this bar will be clearing out by the 2nd period. 

Income statement: In 2011 with the world facing a global recession, following up on a 29th place finish in the standings, the Leafs revenue went up ELEVEN PERCENT!!!  And then they raised ticket prices. Because of the player strike a few years ago, player costs have gone down from $69 million to $57 million. Revenue up, costs down–that’s a P&L the people of Price Waterhouse dream about. A lot of the value is now connected to how much money will be made in the future.  The NHL just signed a 10 year labor contract giving the Leafs cost certainty and a 5 year media deal giving the Leafs revenue certainty. While I still don’t think the Leafs will win a championship in the next 10 years, I would bet they will hit $2 Billion.  

It’s not easy being a Leaf Fan. Yet like a drug, it’s not easy to stop being a Leaf fan.

 

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To see a more in depth presentation please read the powerpoint presentation below which is a Workshop to show brand leaders how to create a beloved brand so they can generate more power and profit for their brand.


We make Brands better.

We make Brand Leaders better.™

We offer Brand Coaching, where we promise to make your Brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. For our Brand Leader Training, we promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

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How to Guide for Marketers

10 ways how to make your brand more loved

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Where is your brand on the Brand Love Curve?

In the consumer’s mind, brands sit on the Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand. At the Beloved stage, you will see that 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. 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.

Here are the indicators of why you might be stuck 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.

Before you get started you might evaluate what has your brand stuck at the Like It stage.

  • 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. 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.
  • You see yourself as a rational thinking marketer: 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 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
  • It’s a 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.
  • 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.
  • 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.
  • You believe that you have positional power, so 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 has captured some 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.

Here are the 10 ways that you can move your brand along the journey to being a beloved brand.

#1  Everything you do should start and end with the consumer in mind.

#2  Focus everything on where your brand can win.

#3 Be seen as unique—both in positioning and execution.

#4 Connect with consumers based on insights that get in the SHOES of your consumer and use their VOICE.

#5 Build a big idea that you can shout from the mountain.

#6 Connect with your consumers on a deeply emotional level.

#7 Beloved brands don’t just solve basic problems, they beat down the consumer’s enemy.

#8 Focus all your resources against those strategic pressure points that provide the greatest return.

#9 Execute with passion. If you don’t love your work, how do you expect your consumer to love your brand?

#10 Use your brand idea to build an experience that over-delivers the brand promise you made.

To see a more in depth presentation please read the powerpoint presentation below which is a Workshop to show brand leaders how to create a beloved brand so they can generate more power and profit for their brand.


We make Brands better.

We make Brand Leaders better.™

We offer Brand Coaching, where we promise to make your Brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. For our Brand Leader Training, we promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

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How to Guide for Marketers

You deserve better advertising

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Slide1While that’s a very famous tongue-in-cheek quote from David Ogilvy, it should be a kick in the butt to clients. It suggests that if you suck as a client, you will get advertising that sucks. It’s likely true. As I’m coaching clients on advertising, I like to ask a very difficult question: If you knew that being a better client got you better advertising, would you actually be able to show up better? When it comes to advertising, the role of the Brand Leader is to consistently get good advertising on the air, and equally consistently keep bad advertising off the air. So what is it that makes some brand leaders good at advertising?

Before we figure what makes someone good at advertising, let’s figure out what makes someone suck

Theory #1: you blame yourself

  • You never find your comfort zone: You are convinced you’re not good at advertising. No experience, feel awkward or had a bad experience. You think you’re strategic, not tactical. You are skeptical, uptight, too tough and too easily annoyed.
  • You don’t know if it’s really your place to say something: You figure the ad agency is the expert—that’s why we pay them—so you give them a free reign (aka no direction). Or worse, you give them the chance to mess up, and blame them later.
  • You settle for something you hate, because of time pressure, or you don’t know why: You don’t really love it, but it seems ok for now. The agency says if we don’t go for it now, we’ll miss our air date and have to give up our media to another brand.
  • You can’t sell it in to management: you need to make sure if it’s the right thing to do, you are able to sell the idea in. Tell them how it works for your brand—and how it delivers the strategy.

Being a good client takes experience, practice, leadership and a willingness to adjust. Don’t write yourself off so quickly. Learn how to be a good client.

Theory #2: You Blame your Agency

  • You hate the brief: Agency writes a brief you don’t like—or you box them into a strategy. If either of you force a strategy on the other, then you’re off to a bad start.
  • Creative team over sells you: you get hood-winked with the “we are so excited” speech: You’re not sure what you want, so you settle for an OK ad in front of you—the best of what you saw. Ask yourself what’s missing before you buy an ad.
  • You lose connection with the agency: Keep your agency motivated so that you become the client they want to make great work on, rather than have to work on.
  • You lose traction through the production and edit: Talent, lighting, directors and edits—if the tone changes from the board to edit, then so does your ad.

An OK agency can do great work on a great client. But a great agency will fail with a bad client. Next time you want to fire your agency, maybe focus on yourself for improvement, because you’ll bring the same flaws to the next agency.

Theory #3: You Blame your Brand

  • The “I work on a boring Brand” argument. You think only cool brands like Nike, Apple, Ikea etc. are so much easier to work on. However, think again, because your boring brand has so much room to maneuver, it should be even easier.
  • You are too careful and think we can’t swing too far: Good ads either go left or right, not in the middle of the road. Consumers might not notice your “big shift”.
  • Advertising roulette: Where brand managers haven’t done the depth of thinking or testing, briefing is like a game of chance. Brands go round and round for years.
  • Your strategy Sucks: You figure if we don’t have a great strategy, a good ad might help. A great strategy makes an ad, but an Ad will never make a great strategy.

It’s one thing to be a “fan” of advertising in general, but we need to see you be a “fan” of YOUR advertising.

Be a better client

Here are eight ways to challenge yourself to show up better at every stage of the advertising process

  1. Do you develop a testable Brand Concept with rational and emotional benefits, plus support points that you know are actually motivating?
  2. How tight is your brief? Do you narrow the target and add engaging insights? Do you focus on the desired consumer response before deciding what your brand should say? Do you focus on one benefit and one message?
  3. Do you meet creative team before the first creative meeting to connect, align them with your vision and inspire them to push for great work?
  4. Do you hold tissue sessions to narrow solutions before going to scripts?
  5. At creative meetings, do you stay big picture, avoid getting into details? When giving direction, do you avoid giving your own solutions and but rather try to create a “new box” for the creative team to figure out the solutions?
  6. Do you take creative risks, and are you willing to be different to stand out?
  7. Do you manage your boss at every stage? Do you sell them, on your vision what you want?   Are you willing to fight for great work?
  8. Are you one of your agency’s favorite clients? Do they “want to” or do they “have to” work on your business? If they love you, they’ll work harder for you and do better work. They are only human. They will never tell you this, but I’m a former client so I will: if you want better work–it’s pretty simple–show up better. 

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Be better at every stage 

  • When doing the strategy pre-work, dig in deep and do the work on insights, create a Big Idea and lay out the brand Concept. Even consider testing the concept to know that it motivates consumers. Never use the advertising process to figure out the brand strategy. 
  • Create a focused creative brief to create the box for the creative team, that has one objective, two insights, the desired response, one main benefit, two support points. 
  • Hold a creative expectations meeting to give a first impression on your vision, passion. Inspire and focus creative team. Do not take a hands off approach and avoid meeting the creative team, assuming your account team has conveyed EVERYTHING. 
  • Use a tissue session to explore ideas. Use this when you don’t have a campaign. Be open to new ways of looking at your brand. Focus on Big Ideas, without getting into the weeds. Be willing to push for better ideas if you don’t see them at the tissue session.
  • When in the creative meeting, be a positive minded client, focus only on big picture, give direction, make decisions. Avoid giving your solutions. No Details. Ask yourself: are you inspiring?
  • Use a feedback memo that is 24-48 hours after the creative meeting for more detailed challenges but without giving specific solutions. Use this to create a new box. Do not use this memo to say new thoughts that were not in the creative meeting or in the management meetings you had. If it is a new thought, pick up the phone and talk about it with your account person first. Slide01
  • If you use ad testing, you can use either quantitative or qualitative depending on time and budget. I always recommend that you use it to confirm your pick, not make your decision.
  • When gaining approval internally, sell it in!!!  That’s part of your role is to fight for the work you love. Be ready to fight resisters to make it happen. My rule of thumb is to bring the senior account person when that person has a good relationship with my boss and even use them to help sell it in (since they are better trained at selling) and then bring the most senior creative person when the creative work needs selling. 
  • Through the production stages, your role is to manage the tone to fit the brand. Think of this like managing the kitchen of your house–you have to live in it, so you have to live with every decision. Always, get more than you need so you can use it later. 
  • With post production, talk directly with and leverage every expert you come in contact with. The more you connect and empower them, the harder they’ll fight for what you need. 

Get the advertising you deserve

At Beloved Brands, we run a Brand Leadership Center to train marketers in all aspects of marketing from strategic thinking, analysis, writing brand plans, creative briefs and reports, judging advertising and media. To read more on strategy, here is a workshop on HOW TO THINK STRATEGICALLY, click on the Powerpoint presentation below:


We make Brands better.

We make Brand Leaders better.™

We offer Brand Coaching, where we promise to make your Brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. For our Brand Leader Training, we promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

Slide19

 

Beloved Brands Explained

What the #*$& is wrong with McDonald’s? Here’s five things wrong.

Posted on

imagesI’ve been confused about McDonald’s marketing the past year, mainly because it appears that McDonald’s is confused about their marketing. That coincides with poor business results, in a downward trend for each of the past 9 months, with February’s numbers showing a deepening issue–down 4% versus last year. “Consumer needs and preferences have changed,” the company said in Monday’s statement. “McDonald’s current performance reflects the urgent need to evolve with today’s consumers, reset strategic priorities and restore business momentum.”

McDonald’s are in desperate need for a RE-FOCUS, so they can get everyone focused on what matters the most. There needs to be an alignment of the team, a return behind their strengths and a return to the fundamentals. The issue with the culture at McDonald’s is that it’s very top-down insular culture with very little outside thinking–which is great when things are going well, but will be tough to battle through when things aren’t going so well.  

Here’s the top 5 potential things wrong with McDonald’s. 

McDonald’s is not aligned with the trend towards healthy eating. 51JW1207ZALThat’s obvious, but that was also equally obvious the past 5 years ago when they grew an average of 10% a year, even +13% the year after the “Super Size Me” movie came out. Also, there are a few examples of indulgent brands that have done well (e.g. 5 Guys), in countering the health trend, to use it as a regular escape from your diet.McDonald’s scored high marks for putting calories on their menu, but bad publicity when they fought NYC on the size of drinks they serve. So while this might be part of the decline, I’m not sure this is the main reason for the decline. McDonald’s should be able to still find growth in this market. 

McDonald’s lacks a product-identity of what it’s now the best at. I’m older so I still think of it as a fast-food burger & fries place. But the menu has become so diverse, I’m no longer sure consumers know what McDonald’s is all about. Without a main product identity where it can win, McDonald’s runs the risk of being second fiddle to everyone they compete against–second fiddle to 5 Guys on burgers, to Dairy Queen on Shakes, to Chick-Fil-A on chicken, to Starbucks on Coffee and Subway on sandwiches. A great case study for McDonald’s is what happened with Starbucks in 2009, where they closed every Starbucks for a day to re-train baristas and send a signal that they are a coffee place. Here’s what I wrote about the Starbucks Case Study: The Starbucks Come Back story: Losing their focus, only to regain it!!!  McDonald’s should re-claim the stake that they are the best burger. They should have done this the past 12-24 months before allowing 5 Guys to get to 1500 locations. They need to own the burger. 

Slide1No one wants to know how sausage is made. I know the internet is attacking McDonald’s all the time about using bleach in their burgers and pink goop in their chicken but we don’t really need McDonald’s mass media to tell us their burgers are made from 100% real beef and their chicken is made from 100% real chicken. I always assumed it was, but now that you bring attention to it, you’re kind of grossing me out. McDonald’s took it a step farther with this on-line video they produced.  Here’s what I wrote last spring: McDonald’s takes a wonderful Advertising idea…and makes a complete disaster out of it  While they might think this video works to explain what their brand is about, I find this video makes me never want a nugget again in my life. As CNN reports below, it’s not pink goop, it’s beige goop and it sure doesn’t make you hungry.   Looking at the options above, McDonald’s should be focused on the heart and the soul of their consumers. McDonald’s needs less attention on the product and more on the magic of the idea of the brand–as the fun little escape for lunch place. 

The experience is now slow and not really that cheap. Ray Kroc’s McDonald’s that grew so fast in the 1960s and 70s was vested in the strong values of quality, service, cleanliness and value. People were trained the McDonald’s way and as a customer you benefited from fast, friendly service and franchises were expected to keep a clean, well-run restaurants. The last few times I’ve been, the speed has been disastrous–you order and then wait 5-10 minutes for them to yell out your number. There is no way the service is friendly–as I rarely hear manners from a McDonald’s employee. Manners are free and can go a long way in making a difference.  

mccafe-headerThe McCafe branding and restaurant re-design. Here’s an article I wrote on McDonald’s launch into the coffee market two years ago: Can McDonald’s win the Coffee War? Not a chance. But two years later, it’s even more important to realize that not only is Starbucks winning, but the investment McDonald’s has put into the coffee launch has taken away from investing in their core fast food business. McDonald’s put major capital into putting fake fireplaces into most locations–major costs that still resemble a plastic play-land. The thing that drives me most crazy about the McCafe is they are hiding what they really are: the golden arches, Ronald McDonald’s, the Big Mac and french fries. While McDonald’s should keep a good coffee, it’s time to re-focus back on being a fast food destination. Get rid of the McCafe branding BS and just make it a product that McDonald’s has, not a separate brand logo that competes with the McDonald’s logo. 

As a new CEO takes the helm, it is time for McDonald’s to re-focus. There is a need for some creativity and investing back in creating a food experience that McDonald’s can win on. Re-train staff to be friendlier and faster for consumers Create magical brand advertising that bonds with consumers. My hope is that McDonald’s can get there–as it’s one of the hall of fame brands out there.

McDonald’s needs to find a reason for their consumers to love it again

At Beloved Brands, we run a Brand Leadership Center to train marketers in all aspects of marketing from strategic thinking, analysis, writing brand plans, creative briefs and reports, judging advertising and media. To read more on strategy, here is a workshop on HOW TO THINK STRATEGICALLY, click on the Powerpoint presentation below:


We make Brands better.

We make Brand Leaders better.™

We offer Brand Coaching, where we promise to make your Brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your Brand’s full potential. For our Brand Leader Training, we promise to make your team of Brand Leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911

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