The new burger war: 5 Guys vs In-N-Out vs Shake Shack

Posted on Posted in How to Guide for Marketers

When I was a kid, after my hockey practices, my mom and I used to go to Burger King. It became our tradition. What did i like the best? It was nice and quiet, compared to the crowded noisy McDonald’s right across the street. There were no lines, no one taking up the great seat locations. It was so quiet, it was almost zen. Even today, Burger King remains the place you go if you don’t like crowds.

Today, there’s a new burger war heating up:

  • 5 Guys Burgers
  • In-N-Out Burger
  • Shake Shack

Who will win? It might depend where you live. If you are in California, you may be partial to In-N-Out, if you are a New Yorker, it is Shack Shake for sure. Everywhere else, it looks like 5 Guys is the dominant brand. This is a brand site, so we look at this through the eyes of marketers and consumers, not food critiques. I am also a burger fan.

Who has the best burger?

I know there is a lot of debate out there. Lets dispel the myth here: they are almost the same piece of meat. They take a high quality ground chuck, and squish it firmly onto a grill, use a cooking technique to lock in the flavor and create a juicy burger. It is a much higher quality meat than McDonald’s and much juicier in the end due to the cooking technique.

The only difference is at 5 Guys, the burger feels like the burger actually breaks apart more which could make it feel less fast-food while In-N-Out feels very neatly stacked. I do like the bacon at Five Guys, but In-N-Out does a nicely toasted bun. Small details.

VERDICT:  Tie

Fries versus shakes

5 Guys FriesIf the burger is a relative tie, then what else can you look at. 5 Guys wins on fries, Shake Shack or In-N-Out wins on Shakes.  I’m a big fries fan, and 5 Guys does have pretty darn good addicting fries. They give you enough that you likely won’t finish them.  The In-N-Out fries (except for Animal Fries) are a little bit nondescript and boring. I do like the crinkle cut style Shake Shack fries, but they are frozen, not fresh. In terms of shakes, the In-N-Out shakes are legendary, whereas 5 Guys is completely missing out by not even having a shake. Verdict:  Tie, pick your poison and likely only have it once in a while.  

Who has better atmosphere?

I have to say, neither In-N-Out or Five Guys have a nice atmosphere.  The In-N-Out restaurants have the plastic feel of a McDonald’s, with booths too small to fit those who can eat a double-double. The hats on the employees are cute, giving it a 50’s diner feel. The 5 Guys atmosphere feels like a Costco, with dusty floors, crappy little tables and chairs. Plus, do we really need 50 signs per restaurant telling us how great you are. There is no effort on their store atmosphere. What you are doing is opening up the door to local establishments finding a niche against both of these with a cooler pub-like atmosphere. The Shake Shack locations are much nicer. If you ever get the chance to go to the original Shake Shack in NYC, it is worth it. I was doing some work with an ad agency, and arrived a couple of hours before the meeting. I didn’t feel like going up early and I noticed about 50 people lined up for lunch at this “shack” in the park.  Every time I have Shake Shack whether in Dubai or throughout the US, I still think of the park. A litlte like my first Movenpick experience, 20 years ago, in the middle of the swiss alps. Verdict: Shake Shack

Five Guys Shake Shack In-N-Out

 

Where does In-N-Out Burger win?

Clearly as I’ve heard from the fans, In-N-Out does a great job engaging with their consumers. The secret menu and the secret sauce, the traditions of the double-double and the “animal fries” all help create a “club” filled with brand fans who will take on anyone that knocks their brand.  There’s a slight difference in who each attracts.  In-N-Out’s menu items are generally less expensive — the chain is most popular with young men ages 18 to 24 with an income of less than $70,000 a year, according to NPD. By contrast, Five Guys patrons are generally 25 to 50 years old, with an income of more than $100,000. In-N-Out seems to have a more engaged consumer base that it can leverage as 5 Guys is now into the Southern California market ready to do battle right in the backyard of In-N-Out.t this point, In-N-Out is stuck as a West Coast brand, in California, Arizona, Nevada and now Texas, giving them only 320 locations.  They have not expanded very quickly, believing it is better to be loved by a few than tolerated by many. This gives them a regional strength and more emotional engagement goes to In-N-Out.

Where does 5 Guys win?

5 Guys has been much more aggressive on their expansion plan. They have pursued winning on review sites and lists that can help drive awareness for the brand. In 2010, they won the Zagat best burger. They have aggressively gone after celebrities such as Shaq and Obama. And most of all, they are winning on location, location and even more location.  5 Guys is everywhere, with 1000+ locations, fairly national and even in Canada. They are clearly following the McDonald’s real estate strategy by trying to be everywhere. The other area where 5 Guys wins is pricing. I am a marketer, so the more price you can command the better. For relatively the same burger, 5 Guys charges twice what In-N-Out charges. In this current stagnant economy, people are proving they’d rather pay $10 for an amazing quality burger than $15 for a lousy steak. It feels like In-N-Out is leaving money on the table with the prices that are just slightly above the McDonald’s price points. More aggressive growth goes to 5 Guys. 

Where does Shake Shack win?

They were definitely late the expansion party, with only 120 stores at this point. The NYC location in the park is such a part of their brand, yet it also drives a lot of revenue. At one point, Shake Shack thought they would stay a “New York only brand” which is part of their delay. Right now, the US market is fairly saturated with burger shops, so they now have 30% of their locations overseas including Seoul, Tokyo, London, Cardiff, Istanbul, Moscow, Muscat, Beirut, Dubai, Abu Dhabi, Doha, Kuwait City, Riyadh. Pretty smart strategy to see an opportunity in those markets and close on them before the others could. I would say, the more interesting locations goes to Shake Shack. 

So who will win?  

At this point the clear winner will be 5 Guys. Just like McDonald’s versus Burger King in the original burger war, it’s not as much about the burger itself but about the aggressive pursuit of real estate. Unless In-N-Out wakes up, take all that brand love they have generated among their fans and they go on an 5-year big expansion, they will be relegated to a regional brand we only visit on our road trips to California.

5 Guys is quickly becoming the upscale version of McDonald’s

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

 

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

How to find the ideal Consumer Benefit for your brand

Posted on Posted in How to Guide for Marketers

What is the right consumer benefit?

The 4 elements of a winning Brand Positioning statement include who you will serve, where you play, where you will win then why the consumer should they believe us. Simply put, that’s the target, category, main benefit and support points.

Before you just write out a random brand positioning statement, we recommend that you dig deeper on doing the homework that helps uncover options and then focuses you on the best possible space to own. Positioning has a sense of ambiguity and uncertainty, which means randomness is only an intuitive guess on your part. Having a process that grounds your thinking will ensure you are owning the best space. I always think the positioning statement takes everything you know about the brand and narrows the focus to only those things that matter. The homework helps to lay out everything you know, and then your decision making helps to focus on the elements that matter.

  1. Who is in the consumer target? What slice of the population will be the most motivated to buy what you do? The first thing to decide is the consumer target, which should be your first point of focus, so that you can find the slice of the population that will be the most motivated by what you do. The mistake for many Marketers is they think about who you want, and they forget to ask who wants you. Who is the most motivated to buy what you do?
  2. Where do you play? What is the frame of reference that helps to define the space in the marketplace that you compete in? We then frame the positioning by determining the category you play in, defining the competitors you will position yourself against. No one really operates in a blue ocean space, as positioning is always relative to some other choice the consumer can make.
  3. Where do you win? We then need to determine the main promise you will make to the consumer target, in the sense of a benefit for the consumer, both the rational and emotional. Think about what does the customer get, and how does it make them feel?
  4. Why should they believe us? Finally, we will look to understand what support points are needed to back up the main promise you are making. These support points have to support the main benefit, not just random claims or features that you want to jam into your brand message.
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The homework is hard, but the output provides clarity when you begin writing a brand positioning statement that will help focus you on what is unique, own-able, and motivating to consumers. One of the biggest mistakes brands make is speaking at the consumer with features (what you do) and not benefits (what they get). The old saying is, “features tell, but benefits sell”. Stop telling consumers what you do and start telling them what they get and how it will make them feel.

The first thing you want to do is to know up your brand’s core strength.

There are four options for what Core Strength your brand can win on: product, promise, experience or price. Many brand leaders have their marketing strategy wrong, when it comes to aligning everything behind the right strength. Which core strength can really impact your brand positioning. Product and experience brands have to be better, promise brands have to be different, price brands have to be cheaper.

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Here’s a simple little game that we play with executive teams. We provide them with 4 chips against the 4 choices of product, promise, experience or price. They have to put one at the highest competitive importance, two at the mid level and then force one to be at the low level. Try it and you will be surprised that your team struggles to agree. You may also find that you are at one strength now and figure it is time to shift your brand marketing to become focused on something else.

  • Product: your main strategy should focus on being better. You have to invest in Innovation to stay ahead of competitors, remaining the superior choice in the category.
  • Promise: your strategy should focus on being different. To tell that story, you need to invest in emotional brand communication. You want to connect consumers on a deep emotional level with the concept.
  • Experience: your strategy and organization should focus on linking culture very closely to your brand. After all, your people are your product. As you go to market, invest in influencer and social media that can help support and spread the word of your experience.
  • Price: focus on efficiency and drive low-cost into the products you sell and high turns and high volume. You have to be better at the fundamentals around production and sourcing.
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Just like any decision, it’s hard to just pick one. But if you start to think about it more and more, you will see how different each of these four choices really are.

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The next decision is the main benefit you want to focus on. Doing a Consumer Benefits Ladder helps to organize your thinking as a great tool for bringing the benefits to life. 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.
  • 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.
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Put all the information of the group brainstorm into a Consumer Benefits Ladder Worksheet. You can put more on this list than you can use, either using market research to help narrow your focus or making tough decisions on what you where you want to go.

What are the emotional benefits?

From my experience, Marketers are better at the rational benefits than they are at the emotional benefits. I swear every brand out there thinks their brand should be the trusted, reliable and yet like-able brand. As a brand, you want to own the emotional space in the consumer’s heart as much as you own the rational space in the consumer’s mind. 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 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 We have taken this research method and created an Emotional Cheat Sheet for Brand Leaders. This lists out the 8 major emotional consumer zones, optimism, freedom, being noticed, being liked, comfort, be myself, be in control and knowledge.

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To own a space in the consumer’s heart, you want to own and dominate one of zones, always thinking relation to what your competitor may own. Do not choose a list of emotions from all over the map, or you will just confuse your consumer as much as trying to own a long list of rational benefits. Once you narrow the major emotional zone you can own, you can use the supporting words of the Emotional Cheat Sheet to add flavor.

We always recommend that you speak with consumers in terms of benefits, not features. They don’t care what you do, until you care about what they get. Put yourself in their shoes and start asking “so what do I get?” to help frame the rational benefit and “how does I feel?” to find the emotional benefit. You will become a much more powerfully connected brand.

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At Beloved Brands, we lead workshops to help teams build their Brand Positioning Statement, helping the team find the target, main benefits, reason to believe.  Click on the Powerpoint file below to view:

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.

GR bio Jun 2016.001

 

Who is your consumer’s enemies that you will fight on their behalf?

Posted on Posted in Beloved Brands Explained

While regular products solve regular problems, the most beloved brands beat down the enemies that torment consumers every day. Positioning-2016.027What are your consumer’s frustration point that they feel no one is even noticing or addressing? For instance, the Disney brand fights off the consumer enemy of “growing up”, while Volvo fights off the consumer enemy of “other drivers” or Starbucks fights off the consumer enemy of a “hectic life”. Shifting from solving a rational consumer problem to beating down a consumer enemy is the starting point to reaching into the emotional state of your consumer.

Starbucks fights off the enemy of the hectic life

Put yourself in the shoes of your Starbucks consumer, who is a 38-year-old mom with two kids. She wakes up at 6:15 am, not only to get ready for work, but to get everyone in the house ready for their day. She drops off one kid at daycare, the other at public school and then rushes into the office for 8:30 am. She drives a van, not because she wants to but because it is a great transportation choice for carrying all the equipment needed for after-school activities, including soccer, dance, tutoring and ice hockey. It never stops. No one is really old enough to thank her, the only appreciations are random moments of celebration or a hug at the end of a long day. Just after getting both to bed, she slinks into her bed exhausted. What is her enemy? a03e0da8-fac7-11e3-acc6-12313b090d61-medium-1Her enemy is the hectic life that she leads. If only she had a 15-minute moment to escape from it all. She doesn’t want to run from it, because she does love her life. She just needs a nice little break. A place where there is no play land, but rather nice leather seats. There are no loud screams, just nice acoustic music. There are no happy meals, just nice pastries have a European touch. Not only does she feel appreciated, but the cool 21-year-old college student not only knows her name but knows her favorite drink. Starbucks does an amazing job in understanding and fighting off the consumer’s enemy, giving her a nice 15-minute moment of escape in the middle of her day.

Yes, the Starbucks product is coffee, but the Starbucks brand is about moments. Starbucks provides a personal moment of escape from a hectic life, between work and home. They fight off the consumer enemy of the hectic life.

Apple fights off the enemy of frustration

Unless you work in IT, you likely find computers extremely frustrating. We have all sat at our computer wanting to pull our hair out. computer-frustrationExamples of computer frustration includes spending 38 minutes to figure out how print, getting error message 6303 that says “close all files open and reboot” or if you have ever bought a new computer and you need to load up 13 disks and 3 manuals to read before you can even email your friend to tell them how amazing your computer is. Apple has recognized the frustration that consumers go through and capitalized on the enemy of frustration with PCs with the famous TV campaign of “Hi I’m a Mac,….and I’m a PC”, helping to demonstrate the many issues around computer set up, viruses and trying to make the most of your computer.  As soon as you open the box you can use the new computer, Macs are intuitive, aligned to how consumers think, not how IT people think. You can even take classes to learn.

Yes, the Apple product is about computers tablets and phones, but the Apple brand makes technology so simple that everyone can be part of the future. They fight off the consumer enemy of frustration with technology.

If you want to show that you better understand your consumers, how would you project the enemy that you are fighting on their behalf.

 

Understanding the consumer is the first step in writing a winning brand positioning statement. To read more on brand positioning, here’s our workshop we run for brand teams:

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 416-885-3911You can also find us on Twitter @belovedbrands. 

GR bio Jun 2016.001

If you knew that being a better client would get you better Advertising, could you actually show up better?

Posted on Posted in How to Guide for Marketers

 

Clients get the advertising they deserve.

While 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 aSlide1 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. Baseball pitcher David Price has a sign above his locker:  “If you don’t like it, pitch better”. The same thing should hold true for Brand Leaders: If you don’t like your Advertising, then show up better. 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.

Show up as a better client and watch the Advertising work get better

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. 

Creative Advertising Process

 

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. 
  • 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. 

Be a better client and get the advertising you deserve

To read more on Marketing Execution, here is a workshop we run. 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. 

Graham Robertson Bio Brand Training Coach Consultant

 

Would you ever pay more for a bottle of water than you would for beer?

Posted on 2 CommentsPosted in How to Guide for Marketers

This past week, I was in Shanghai, China and found the price of a bottle of Evian and Fiji water about ten times the prices of local bottled water (Nestle). And when I went into the Beer section, the water was still twice the price of a Budweiser beer (produced locally). You can also buy Coke or Gatorade much cheaper.

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The prices above  are in Chinese Yuan (1 CYN = 0.15 USD), with the US Dollar equivalent being just under $2.00 US for the Evian or Fuji water, and then only 21 cents US for the Nestle water. The Budweiser is only $1 USD and the Coke is about 50 cents US. Given any worries about “don’t drink the water”, you might easily be willing to pay for the Evian. Or just grab a few Budweiser’s and not worry so much about the water.

China is in a state of dramatic change

The economy of China has been going through vast changes and you see it live on the streets of Shanghai. The contrast of the modern sky scrappers of downtown Shanghai, with the small street neighborhoods with laundry hung out on the phone lines. The increasing number of Mercedes driving past old school three wheel bikes carrying layer upon layer of boxes for delivery. High end restaurants contrasting against live chickens being killed and bagged for dinner that night. The small boutique 100 square foot stores and the 80,000 square foot Carrefour Super Markets.

While China has benefited from global trade, making Apple computers and Nike shoes to be sold around the world, the government uses protectionist practices to ensure high transfer pricing to ensure local goods benefit.

A brand like Evian, with water from the French Alps can not maintain that positioning if they begin producing in a factory just outside Shanghai. In the Carrefour, they have three specific aisles for “Imported” goods, all recognizable Western brands, but all with dramatic price premiums to the local products. This aisle might appeal to the high number of expats living in China as well as the growing Chinese upper middle class. The rest of the grocery store has 10-20% global brands interwoven among the shelves of local goods. This sets up two specific strategies, produce locally (for instance Nestle) and compete directly with the local goods, or stay in the “Imported” and use the super-premium pricing as a strategy to set yourself apart.

I remember being in France in the early 1990s, where I found myself walking all over Paris for about 4-5 hours on a 35 Celsius day. I finally came across a store selling Diet Coke and it was the equivalent of $6. I was in shock, but my thirst overcame my Scottish blood and I guzzled down the most expensive Diet Coke of my life. Later on, my wife ordered a glass of wine for $3. One more reminder that if you eat and drink like the locals, you will be much better off.

Global Pricing Management Systems

Global pricing models get very complicated. With a desire to do well in every local market, you must consider regional and global pricing to ensure you avoid any grey-market activity. Most of the big global brands are using pricing corridors by region to ensure local pricing stays local. Here are five things when considering your pricing as you enter new markets.

  1. Define your Pricing Strategy in alignment with your business strategy and business objectives and based on a deep understanding of your own competitive position, customer insight and cost-to-serve. When starting to look at your pricing, here is what you should be considering.
    • Market Price: If you are confused, pricing studies that look at various options to identify the price elasticity. In general, the more loved a brand, a combination of interesting or important are more price inelastic. One water scare and Evian could charge $5 per bottle, without seeing a change in the volume would make it an inelastic price.
    • Value Price: A brand has good value if the price is deemed “fair”. For a marketer, the mid point hits when the perceived price and perceived value match up. If the price is too high, there is a risk of losing customers/volume. If the price is too low, there is a risk of not realizing the full profitability on the brand.
    • Strategic Price: the pricing strategy can actually impact the positioning as much as it just reflects the positioning. A super premium brand like Evian can make the consumer believe it must be a super premium if it really can command that value.
    • Short vs. Long-term Revenue Pricing: Marketers can get caught up in the addiction to pricing promotions. Once you get up to 30-50% sold on deal, the actual price begins to have little meaning for the consumer.
    • Portfolio Pricing (Price Points): One option for a brand entering a local market who wants to maintain the price of their global brand would be to create a specific local brand with a local price. This would allow you to own both the super-premium and the value priced brands, with the consumer never knowing you own them both.
  2. Operationalize Pricing Strategy in marketing activities and generate all required input for Price Execution.  Here are the factors you should be considering when you operationalize your pricing into the new markets.
    • Competitor Responses
    • Not-in-Kind (NIK) Replacements
    • Reduce/Increase attractiveness of business
    • Keep out competition
    • Setting Visible Market prices
    • Customer Reaction Product Pricing Cannibalization
  3. Implement Pricing Strategy and Price Determination framework into daily sales activities and transactional processing. As you evaluate the impact of your pricing in the market, here are the factors you should be looking at.
    • Buying Power
    • Supplier Power
    • Place in the Value Chain
    • Price Elasticity
    • Global vs. Local Supply and Demand
    • Capacity
    • Substitute products
  4. Define pricing capabilities and skill sets, establish pricing organization and assure consideration of legal requirements
  5. Enable pricing capability by monitoring and provision of tools, systems and processes related to pricing in an integrated manner

Pricing Waterfall

It is good discipline for brands to map out and manage their pricing waterfall. This provides a good control tool as you can track the waterfall over time and identify problems you are encountering. Here’s an example of the dimension involved in a pricing waterfall, helping move you from a desired price to a profitable price.

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So would you pay a 90% price premium for the Evian? I did. 

Here’s a presentation we use for the deep dive analytical thinking that can help you determine your pricing.

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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Use our consumer benefits ladder to focus your brand message

Posted on Posted in How to Guide for Marketers

The consumer benefits ladder is an effective tool for translating product features into functional benefits and emotional benefits. It forces you to stop talking about yourself, and start listening to your consumer. Instead of saying what you do, say what consumers get or how consumers will feel. This seems to be the simplest lesson great marketers do, and the rest of marketers miss out on.

Marketers should be fixated on your consumer, not your brand. 

I always ask Marketers: “Do you represent your brand to your consumer or do you represent your consumer to the brand?consumer benefits ladderYes, I get stunned looks of confusion when I ask that. But it’s an important question as to your mindset of how you do your job. My challenge to you is to start thinking about your consumer and be their representative of your brand. The work gets better. You will see clearer paths to growth and start to create a brand that consumers love rather than just likes. When this happens, sales go up and the P&L spits out higher profitability. The more loved the brand, the more powerful position it occupies and the more profit it can generate from that source of power.

The Consumer Benefits Ladder

The consumer benefits ladder helps turn your brand’s features into consumer benefits. You should stop talking about what your brand does and start talking about what your consumer gets. The four steps to building a consumer benefits ladder: 

  1. Leverage all available research to define your ideal consumer target profile with need states, consumer  insights, and the consumer enemy.  
  2. Brainstorm all possible brand features. Focus on those features you believe give your brand a competitive advantage.
  3. Move up to the functional benefits by putting yourself in the shoes of the consumer. For each feature on your list, ask, “So, what do I get from that?” Challenge yourself to come up with better benefits by asking the question up until you move into a richer zone.
  4. Then move up to the emotional benefits. Look at each functional benefit and ask, “So, how does that make me feel?” As you did in step 3, keep asking the question until you see a more in-depth emotional space you can win with and own.

Brand Positioning

People buy benefits.

If you are a headache medicine that is fast, tell your consumer they can on with their day. And, if you are a mouthwash that is strong, talk about how you make your consumer’s mouth healthier. If you are in financial services, leave them feeling more knowledgeable about where their money goes, or in control over their financial health.

Turn your feature into a functional benefit by getting in the shoes of your consumer and ask “so what do I get?” Turn your functional benefit into an emotion benefit by asking “so how does that make me feel?”

Have you ever heard of a bad date “where all he did was talk about himself?” The same thing for a brand. The trick is to genuinely show you care. Show interest. Listen. Make them feel better about themselves.

Stop talking about you. Start talking about them.

Brand Positioning

Worksheet example

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.
  • 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.

Put all the information of the group brainstorm into a Consumer Benefits Ladder Worksheet.

consumer benefits ladder

Read more about brand positioning by clicking on this link below:

How to create your brand positioning statement

My book, Beloved Brands, has everything you need to be successful with your brand. 

 

I wrote my book, Beloved Brands, as the playbook for how to build a brand your consumers will love.

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

Available on Amazon, Apple Books or Kobo

We have the paperback and e-book version on Amazon. Click here to order: https://lnkd.in/eF-mYPe  

We are also on Apple Books, which you can click here to order: https://lnkd.in/e6UFisF

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

 

At Beloved Brands, we help build brands that consumers love and we make brand leaders smarter.

🎈Help create a brand positioning statement that motivates consumers to buy, and gives your brand an ownable competitive advantage.

🎈 Build a brand plan that forces smart focused decisions to help organize, steer, and inspire your team towards higher growth

🎈Align your marketing execution behind a brand idea that tightens our bond with consumers and moves them through their buying journey

🎈Use a deep-dive 360-degree assessment of your brand’s performance to trigger richer thinking before you write your brand plan

🎈Our brand training program will help realize the full potential of your brand leaders, so they are ready to grow your brand.

 

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

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

About Graham Robertson

As the founder of Beloved Brands, Graham has been an advisor to the NFL Players Association, Shell, Reebok, Acura, Jack Links, Miller beer, Earls restaurants and Pfizer. He’s helped train some of the best marketing teams on strategy, brand positioning, brand plans, and advertising.Graham Robertson

In his marketing career, Graham led some of the world’s most beloved brands at Johnson and Johnson, Coke, General Mills, and Pfizer, rising up to VP Marketing. He has won numerous awards including Marketing Magazine’s “Marketer of the Year”, Businessweek’s best new product award and four Effie advertising awards. His book, Beloved Brands, is the playbook for how to build a brand consumers will love.

We live by the beliefs that guide us

We believe the best answers are inside you already. My role is to get those answers out, and make your answers even smarter. I never give you the answer. I will ask more questions that challenge your answers to be better.

We believe investing in your people pays off. With my training program, I know I will make your people smarter, so they make the right choices, and produce exceptional work that will lead to higher brand growth.

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

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

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

Posted on Posted in How to Guide for Marketers

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

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

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

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

Here’s a solution for Brand Leaders 

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

1.  Where is your consumer?

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

2.  Where is the Brand?

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

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

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

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

What I recommend you do:

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

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

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

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

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

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

The media math from a client’s view

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

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

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

 

To see a training presentation on getting Better Marketing Execution: 

Beloved Brands: Who are we?

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

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

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

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

Posted on 1 CommentPosted in Beloved Brands in the Market

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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Align the 5 consumer touch-points to build consumer connectivity and brand love

Posted on Posted in How to Guide for Marketers

When we think of the most beloved brands–Starbucks, Apple, Ferrari, Disney, Nike or Mercedes–it’s really hard to figure out the ONE part of the brand that really makes it great. For example on Apple, I have heard: “Apple has the best products” or “they have the best ads” or “it’s actually the experience”. At Beloved Brands, we believe you need 5 magic moments that a brand must deliver at an extremely high degree in order to become a beloved brand:

  1. Brand Promise
  2. Brand Story
  3. Innovation
  4. Purchase Moment
  5. Experience
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Brand Promise: Create a simple brand promise that separates your brand from competitors, based on being better, different or cheaper. Try to use a brand positioning exercise to figure out your brand’s value proposition–we use a brand ladder (below) where we map out the target definition, product features, rational benefits and emotional benefits. To read more, click on this hyperlink: How to write a brand positioning statement

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Brand Story: At Beloved Brands, we see Advertising as a tool for telling your brand story in a way that creates a bond with consumers, to establish your brand’s positioning and to drive change in your consumers behavior that leads to higher sales, share and profit. You should use your brand story to motivate consumers to think, feel or act, while beginning to own a reputation in the mind and hearts of consumers. Here’s a hyperlink to a story on helping you judge advertising: Judging Advertising

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Innovation: Fundamentally sound product, staying at the forefront of trends and using technology to deliver on your brand promise. The trick with innovation is keeping the serendipity of an R&D team aligned, while pushing for a balance of blue ocean against staying within the perimeters of the brand strategy. New products have to meet consumer needs and many times creating a consumer need they didn’t even know they had. 

Purchase Moment: As consumers get near the purchase, there becomes this “moment of truth” when they have to make the final decision to buy. We manage the purchase moment using a buying system that maps out how consumers move through the purchase cycle and use channels, messaging, processes to make the final decision.

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Experience: Turn the usage of your product into an experience that becomes a ritual and favorite part of their day. One of the best brand experiences is Starbucks, providing consumers with more than just coffee, but rather an escape from daily grind a hectic life. At Starbucks, you find that little moment between home life and work life, a cool atmosphere indie music and leather chairs, a barista that knows your name and your drink, you can order in Italian and one of the best things they manage to indirectly achieve–no screaming little kids.

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The brand becomes more powerful when everything is aligned under a “big idea” for your brand. In today’s crowded media world, consumers now see 6,000 brand messages every day. They have to quickly sort through those messages, rejecting most and only engaging in a few each day. It’s those brands who can communicate in a headline style idea will grab the consumers attention.

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Once you establish that big idea, you can align each of the 5 magic moments underneath that big idea. 

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Using the Big Idea map above, we can see the promise comes from the brand positioning, the brand story is told through advertising, the innovation is driven by R&D, the purchase moment is a combination of your sales team and your distribution strategy while the experience comes directly from how you manage the operations and culture of your organization. As you can start to see, everyone and every activity should be driven by the Big Idea. To show you how to use the Big Idea map, here’s the example using the Apple brand, showing how they align behind everything linked to the big idea of “simplicity”.

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You should align and manage every part of your Organization around your Brand’s Big Idea

 

To read more about how to create a beloved brand, click on this presentation which is our workshop we lead around how to create a beloved 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.

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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5 key success factors at the CMO level

Posted on Posted in How to Guide for Marketers

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: 

https://beloved-brands.com/2016/03/07/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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