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

Posted on Posted in How to Guide for Marketers

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

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

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

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

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

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

Does having a brand vision statement pay out?

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

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

A brand vision helps to frame the overall brand plan

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

Things that Make a Good vision: 

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

The watch outs for vision statements:

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

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

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

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

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

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

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

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

I run Brand Leader Training programs on this very subject as well as a variety of others that are all designed to make better Brand Leaders. Click on any of the topics below:

To see the training presentations, visit the Beloved Brands Slideshare site at: 

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

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

Posted on Posted in How to Guide for Marketers

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

How to win in a Red Ocean world

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

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

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

Competitive Warfare

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

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

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

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

The leader uses defensive strategies

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

The challenger brand uses offensive strategies

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

The flanker brand stays clear of any battles

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

Guerrilla warfare wins where no one notices or cares

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

Marketing Warfare Rules for Success

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

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

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

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

We make Brands better.

We make Brand Leaders better.™

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

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Can Donald Trump manage his outspoken chaos and win?

Posted on Posted in Beloved Brands in the Market

The Donald Trump brand has clearly captivated America, dominated the media, polarized the electorate and rallied those who hate politics. And it’s now rallying those who hate Trump.

It has confused the political pundits and media experts, who are in shock that he’s leading the polls. Trump’s performance raises lots of questions: Can Trump keep up his controversial voice over the next 16 months, without self-destructing or wearing out his audience? Can Trump increase his following from that of a niche “challenger” type brand to being a mass “leader” type brand? While Trump now has a following, can he overcome his huge negatives and actually win? 

At Beloved Brands, we look at all types of brands and see what we can learn. This is our first politician we’ve covered, so bear with us. If you can’t see straight when reading a branding article about Trump, I suggest you stop reading. I’m just a marketer so this article will only talk about the Trump brand, not about the Trump politics. Plus, I’m Canadian so I’m not even a voter.

Love him or hate him. Trump 2016 is fascinating and offers plenty of lessons for brand leaders either running a brand or trying to create their own personal brand.

As Marketers, what can we learn from Trump?

  • Trump has a focused and clearly defined target market and he is not afraid to alienate those not in his target. We will call Trump’s core target market the “grumpy old men”, who are mad at all the changes over the years that have weakened America. But Trump is now connecting with a broader group of “disenfranchised Americans” that have struggled over the past 15 years. Trump has shown no fear of going after the enemy of his target:  illegal immigration. It’s a hot button with the “grumpy old men” but also for those “disenfranchised”. But the immigration policy is highly risky, potentially alienated many hispanic voters, who are approximately 22% of voters. While the issue reduces the size of “where will Trump play” to 78% of voters, his calculation likely assumes he’d be no where without that issue. The lesson for marketers: never be afraid to alienate consumers as long as you are passionately connecting with your core consumers. I once had a Brand Leader tell me that their target market was, “18-65, new potential customers, current customers and employees”. My sarcastic response was, “you’ve left out tourists and prisoners?” Every brand has limited resources (financial, people, time, partners) and spreading those limited resources across an entire population is resource prohibitive. While targeting everyone “just in case” might safe at first, it’s actually less safe because you never get to see the full impact. Realizing not everyone can like you is the first step to focusing all your attention on those that can love you. Trying to be everything to anyone ends up being nothing to everyone. Be honest in assessing your brand’s assets and then match those assets up to who is most likely to be motivated enough to buy your brand.
  • Trump is “different”. While every politician takes the “I’m an outsider to Washington” strategy, normally it’s said by a Governor or Senator–who are just as bad as those inside the beltway of DC. Trump is the only true outsider–never having ventured into politics in his life. When people lay claim to come from industry, Trump can own this, since he truly is industry. Beyond the classification, Trump comes across as the anti-politician, almost saying and doing everything “wrong”, but that’s part of his “charm”. The lesson for marketers: Brands have four choices: better, different, cheaper or not around for very long. You have to take a stand on finding what makes you unique. Unless you have a true technical advantage, being different is a much more powerful space to own than trying to be better, especially when it’s difficult to prove that you are better. When I look at market research, one number I love to look at is “made the brand seem different”. 
  • Trump has a focused 7-second Big Idea brand message, that’s easily explained and understood. 885734_1280x720“Make America great again” speaks to the idea that he wants to turn back the clock to a different time–likely to the 80s and 90s when American capitalism of Ronald Regan and Bill Clinton made America the one super power in the world. It’s an idea and not just a slogan. What’s Jeb’s brand in 7-seconds? His website say “I’m Jeb Bush and I’m asking for your support”. There’s not even a benefit in that statement.  Trump’s idea stands out as it will alienate the liberal left that organized and supported the Occupy movement a few years ago. Heck, Trump is the 0.000001% and makes no apologies for it. The lesson for marketers: are you able to describe your brand’s big idea in 7 seconds? And then, do you live up to it? Here’s when you need a 7 second pitch: a) In your advertising, it should be the idea line at the end of the TV ad, the billboard ad in Times Square or the button on Facebook. b) Internally, this is the rallying cry to R&D to focus their innovation, to HR on building the culture and to Senior Leaders for how to define the brand to everyone in the company. c) In sales, this is your opening line to the buyer or store manager or the dentist you’re trying to get to recommend your product. d) Even personally, at the start of the job interview, you should lead off with a 7 second pitch that describes yourself (e.g. I’m a marketer that finds growth where others can’t) At Beloved Brands, we believe that you should build everything on your brand around a Big Idea. Consumers want consistency from the brand. Constant changes to the advertising, packaging or delivery can be frustrating to consumers. Leverage a Brand Story and a Big Idea that balances rational and emotional benefits to help establish and build a much tighter relationship. Once you establish your big idea, line up everything under it, including your brand positioning, communication, innovation, in-store and the overall experience you create. So, what is your 7-second big idea for your brand?
  • Trump has used a marketing strategy that started with the love of a few followers, and created a momentum to gather more followers.creating beloved brands 2015x.049 If we use the Brand Love Curve above, Trump entered the race at the Indifferent or Like It stage for most voters, but he had a very small group of core loyal supporters who loved him. He used the Immigration Issue to immediately separate himself from the pack, giving him a tight connection with the “grumpy old men” who love him. Once it created a news story, it allowed Trump to use the Immigration issue to reach others and connect with them–particularly the “disenfranchised Americans” who were indifferent to Trump at first, but have since moved to Like Him or Love Him. The lesson for Marketers: you can leverage your following from those that already love your brand to create an even bigger following. Line ups follow line ups. This has been the strategy for a few populous brands like Apple and Starbucks the past 5-10 years as they’ve shifted from a cool challenger type brand with a core base of artist-type users that love the brand to becoming a mass brand that any demographic or profession can love.
  • Trump’s media execution and leverage of the media has been brilliant (so far). He’s dominated the news media every week. He’s consistently stayed on brand, with very few wobbles. Here’s how I would define the Trump brand character: Trump is that outspoken (loud mouth), strong-willed (over-bearing), highly accomplished (almost pompous) business leader from the opulent days of the 1980’s (the 1%). It will be a challenge for Trump to maintain this type of media execution–as most PR agencies tell you to “be careful”, yet Trump has to be the opposite. He had a post debate wobble when he attacked Fox’s announcer Megyn Kelly. It didn’t really do him any good, but he seems to have gotten past it without much damage. One thing Trump should never do is apologize as it would go against his brand. Voters who are connecting with Trump like his outspoken voice because he is saying what they wish they could say. And if he apologizes they’ll feel bad for thinking exactly what he has already said. Think of it as the “Andrew Dice Clay effect”: He was funny, until he told us he was sorry (and cried) then we felt bad for laughing and then he wasn’t funny anymore.
  • Trump’s entry into the Presidential race has broken every normal rule. For instance, on his recent visit to Iowa, he landed at a state fair in a Helicopter, brought a huge entourage and wore a suit (mind you, he had his baseball cap on). Trump’s rhetoric and style are so different from the usual politicians that his competitors (Jeb Bush or Scott Walker) don’t know how to deal with him. The lesson for Marketers: when you enter a new category, being the rule breaker sets you up as different. The launch of the iPhone was so different that the CEO of Blackberry laughed. When Starbucks launched the $4 latte, coffee competitors had no idea how to react. The launches of Amazon, Netflix and Uber have created such confusion among the incumbent brands, they don’t even know what to do. As you enter a new category, what rules will you break and how will you use that to your advantage?

But can he actually win?

The only way he wins is if he goes mainstream. And if he goes mainstream, the Trump brand will die. Like everyone that enters the race, his obvious brand vision is to win the Presidential election. (Or is it?) As the challenger brand, he’s captured a significant niche of frustrated voters. But while owning a niche is a great brand strategy for gaining share and effectively destroying your competitors, it isn’t enough to achieve your vision of winning the race. At some point, Trump needs to shift to being a mass brand and I’m not yet sure that’s possible. The only way to become mass is to become more mainstream and that risks going completely against the controversial Trump brand he’s created. Won’t a mainstream Trump brand be so watered-down that it would die?

Trump is looking at the wrong data points. He needs to reduce the negatives before focusing on the positives. While Trump keeps telling everyone he’s winning, as his support numbers has grown to 25% of the Republican side of the race, the real number they have to manage is the high 62% of voters who reject Trump, saying they’d never vote for Trump. If he can’t get that number down below 50, he’ll never have a chance to go beyond a novelty act. The issue in this election is that both parties are burdened by high un-likability numbers, with Hillary’s un-approval ratings above 50%. With all these high negatives, maybe all parties might like the idea that they won’t need a voter majority to win.

Can Trump maintain this level of chaos or will the Trump brand eventually fizzle? Trump has shown no signs of reducing the chaos, no signs of going mainstream and no signs of apologizing. That just leaves one alternative: voters get tired of Trump before election day. It’s hard to keep up such a long tenure of organized chaos to stay in the news while avoiding being attacked by the news. Lots of celebrities have tried this and it ended up biting them eventually. The brash “shock humor”  tends to wear out just as fast as it entered. Trump may finally say something so offensive that people want off the bandwagon for fear of association. Can Trump sustain this level of controlled chaos that connects with the disenfranchised voters? Election day is a long way away. My guess is he fizzles.   

Will Trump go third party still?  Every Republican beyond the voters seem to be against Trump, so let’s assume he’ll eventually lose the nomination. With Trump’s ego, he won’t be able to resist going as a third-party candidate.. And if we look to the 1992 results, it’s possible Trump could replicate Ross Perot’s support and get 18% of the vote. While that doesn’t win, it certainly changes the election as the other two will really be playing to see who can get over 41% instead of over 50%. So that brings us back to Trump’s real vision. Does he really want to be President or does he just want to disrupt the election?

Who will save this mess? And for everyone but Trump, this sure is a mess. The first two weeks of a campaign can make or break the candidate. Both Scott Walker and Jeb Bush must be disappointed with their performance, completely over-shadowed by Trump.They also bombed in the debate. Trump may not win the race, but he has possibly destroyed everyone else’s chances of winning. Maybe the next President isn’t even in the race yet?  

Love him or hate him, the Trump brand is fascinating. Many of us are starting to ask “can he actually win?”

To read more on how to create a personal brand, here’s a training workshop we lead with brand leaders around the world:

Also, if you’re interesting in Beloved Brands Training Programs for brand management, feel free to contact us to learn about our one day or three day boot camps for brand leaders. We believe that better leaders make better work which produces better results. Here’s more information.

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 39112015x gmr bio.001

What you should do when your brand is stuck at the Like It stage

Posted on Posted in Beloved Brands Explained

Figure out how tightly connected your brand is with your consumer

At Beloved Brands, we have created a hypothetical curve called the Brand Love Curve. The more tightly connected consumers are to the brand, the farther along the curve the brand sits, with brands sitting anywhere from Indifferent to Like It to Love It and finally to the Beloved stage, where demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans.

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While marketers dream of becoming a Nike, Coke, Disney or Apple, the reality is that most brands are closer to the “Like It” stage. That means you are doing a pretty good job, you’ve been able to carve out a bit of a niche and be a consistently chosen brand against proliferation of brands in your category. And you likely have good steady market shares, moderate profits and most brand indicators are reasonably healthy. It’s just that no one loves you. You’re likely not really doing enough to create a tight bond with consumers. It also means you might not be maximizing the full potential of your brand, you may be leaving your brand vulnerable to future attacks and you are leaving money on the table. 

 

where you are on love curve.001

 

How do consumers see brands at the “Like It” stage

Consumers see your brand as a functional and rational choice. Your brand does a good job in meeting a basic need they have. They tried it and it makes sense so they buy it, use it and enjoy it. They likely prefer it versus another brand. The might not give it much more though. Consumers lack an emotional connection or have any real feeling for the brand. They see it as ordinary, which is just a little bit better than indifferent. Overall, consumers see you brand in the “it will do” space. 

Why is your brand at the Like It stage?
There are seven reasons why you are at the Like It stage of the brand love curve:

  • 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. Nearly every category has some consumers that have the potential to love the brand–it’s just a matter of finding them and a willingness to drive more emotion into your marketing.
  • We are rational thinking Marketers: Those marketers that believe consumers are strictly rational when it comes to the brand 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. Don’t get stuck with just features and claims–match them up to consumer needs and create rational benefits and then dial them up to emotional benefits. We recommend using a customer value proposition brand ladder below to help turn your features into benefits.

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  • New Brand with Momentum: The second stage 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. Looking at the various ads for Wendy’s, do you see a big idea? The only consumers remaining are those who like their burgers, not the brand.

 

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  • Your brand has positional power–so you figure who needs Love: There are brands that have captured a strong positional power, whether it`s a unique technology or distribution channel or even value pricing advantage. Brands like Microsoft or Walmart or even many of the pharmaceuticals products don`t see value in the idea of being loved. The problem is when you lose the positional power, you lose your customer base completely. Case in point is the Microsoft brand which has struggled to go beyond their Windows monopoly. 
  • Brands who capture Love, but no Life Ritual: There are brands that quickly capture the imagination but somehow fail to capture a routine embedded in the consumers’ life, usually due to some flaw. Whether it’s Krispy Kreme, Pringles or even Cold Stone, there’s something inherent in the brand’s format or weakness that holds it back and it stays stuck at Loved but just not often enough. So, you forget you love them.

Indicators that your brand is at the Like It stage

From a business point of view, you likely see the brand has a lower conversion from awareness to sales, there is a high % bought on deal, low loyalty and you’re likely faced battling a  strong private label share. 

  • 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 stage, 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.Slide04
  • Stagnant Shares: Your brand team is happy when they hold on to 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.

How to get to the Love It stage

  • Separate your brand from the pack: stake out certain spaces in the market creating a brand story that separates your brand from the clutter. The best brands have 3 choices:  better, different or cheaper. When you struggle to be better, you need to find a way to be different so that your brand matches the winning zone below–where your brand’s clear point of difference matches up to what the consumer wants. Begin to sell the solution, not just the product.
  • Build a bigger following: Invest in building a brand story that helps to drive for increased popularity and get new consumers to use the brand.

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  • Leverage those that already love the brand: Focus on the most loyal consumers and drive a deeper connection by driving the routine which should increase usage frequency. On top of that, begin cross selling to capture a broader type of usage.

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  • Love the Work: It is time to dial-up the passion that goes into the marketing execution. Beloved Brands have a certain magic to them. But “Like It’ brands tend to settle for ok, rather than push for great. With better work, you’ll be able to better captivate and delight the consumers. If you don’t love the work, how do you expect the consumer to love your brand.
  • Fix the Leak: Brands that are stuck have something embedded in the brand or the experience that is holding back the brand. It frustrates consumers and restricts them from fully committing to making the brand a favourite. Be proactive and get the company focused on fixing this leak.
  • Build everything a Big Idea: Consumers want consistency from the brand—constant changes to the advertising, packaging or delivery can be frustrating. Leverage a Brand Story and a Big Idea that balances rational and emotional benefits helps to establish a consistency for the brand and help build a much tighter relationship. Once you establish your big idea, line up everything under that big idea including your brand positioning, communication, innovation, in-store and the overall experience you create.

 

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Brands at the Like It stage tend to get complacent. You need to drive the Love into the work, and find the balance between rational and emotional benefits.

 

Does being loved matter?

The big idea behind RETURN ON LOVE (R.O.L.) is that the work you do on the brand is first and foremost focused on creating a strong bond between your consumer and your brand. Once you have that bond, you can use it as a source of power versus all the stake holders of the brand: power over customers, suppliers, competitors and even the very consumers you have the bond with. The brand would also generate added power with the media, key opinion leaders and employees. Once you have power, you can drive growth and profit, using that power to drive up price, drive down costs, gain market share and enter new categories. If your finance person asks “so what is the ROI on this”, I’m not recommending you say “we are focused on ROL buddy, not ROI” but what you should say is “we are investing in building a bond with our consumer that will give us more power that we can then wield much greater profit for our brand”

But seriously, having more love adds to the profits. Here are the 8 ways to turn brand love into more PROFITS for your brand.

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

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

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

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

The more loved a brand is by consumers, the more powerful and profitable that brand will be.

 

To read more on how to create a beloved brand, here’s a training workshop we lead with marketing teams around the world:

Also, if you’re interesting in Beloved Brands Training Programs for brand management, feel free to contact us to learn about our one day or three day boot camps for brand leaders. We believe that better leaders make better work which produces better results. Here’s more information.

We make Brands stronger.

We make Brand Leaders smarter.™

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

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What is “Blowfish” marketing?

Posted on Posted in How to Guide for Marketers

blowfishWhen I talk with Brand Leaders about their problems, one of the first things they say is they don’t have enough Marketing Budget to do things they need to do. But when I observe what they are doing, I see that they are trying to do too much with the little money that they have. No matter how much marketing spend you have, you should challenge yourself to think and act like a BLOWFISH.

Simply put, a BLOWFISH strategy is trying to seem bigger than you are. In the world of highly competitive marketing, whether you are a start-up or a smaller niche player, you need to look like a real player to be noticed and purchased. To be successful, take all of your marketing budget and put it against one target market who you know you can move. Talk about one simple message that you know will be the most motivating. Put all of your money behind one activity that you know will drive your strategy.Slide1

You need to hyper-focus all of your resources against a very tightly defined target so that you will be able to reach everyone in the target with your message and move them to take action. That might mean narrowing the age to no more than a range of 3-5 years. It also might mean narrowing other demographics such as occupation or income level. And you may choose to only focus on key influencers and let them take your brand to the bigger mass audience. The big thing for a BLOWFISH strategy is you need to know that everyone in the target is already highly motivated so that all your effort will be in providing your brand as the solution. In the first time home buyers market, (mortgages, new homes) the idea target is 28-33, when most consumers decide to buy a new home. If you can win with that target, you’ll be able to establish your brand in the market.

You need to compress your activities over a focused time period so that you seem bigger than you are. Pick a 12-week period when you think your audience might be the most motivated to buy and take all your resources you have so you can completely dominate that period. In the spirit that crowds follow crowds, the target will start to believe that you are a major brand and look like a potential leader in the market. In terms of Return on Investment, (ROI) yes it’s a higher risk, but on the other hand after 12 weeks you’ll know if you have something–either your promise or your execution–that can move your target to action. So while the ROI might look riskier it’s actually less risky because you can find out quickly if you pass or fail. When I was in the allergy business, we took all of our money and focused it on 8 weeks of pollen season and 4 weeks of rag weed season, believing if we won these 12 weeks, we’d win the year. We saw tremendous growth going from a distant #2 to the clear #1 brand.

Take all your resources and focus them on the activities you know will have the most impact in moving your target to buy your brand. Where as most brands seem to spread their resources across 50 activities, I usually recommend only 9 activities. I believe that 3 strategies with 3 tactics per strategy gives you 9 activities that you can do an amazing job against. I’d put my 9 up against your 50 any day. For a BLOWFISH strategy, I’d recommend you only do 3 activities and do them well. If you know your concept is better than the product, focus on advertising, if you know your product is better than the concept then focus on trial. If it’s a consumer driven brand, put all your money on the consumer and let them search and demand the product. But if it’s about being on shelf, then focus on the retailers. When I was in the confectionary business, we had such a unique format on Listerine strips that we spent all our money on sampling before we even got to shelf. The product was so unique, people wanted to share their secret. We were able to track that consumers were sharing a pack of 24 strips with up to 13 people, so that the consumers were doing the work for us. In our first share period, we were the #1 brand.

Where Your Focus Shows Up

  • Pick a focused Target Market
  • Pick a focused Brand Positioning
  • Pick a Focused Strategy
  • Focused Activities

Why should you focus?

  • Every brand is constrained by resources—dollars, people and time. Focus makes you matter most to those who actually might care. Focusing your limited resources on those consumers with the highest propensity to buy what you are selling will deliver the greatest movement towards sales and the highest return on investment for those resources. I was leading a session on a Tourism Region and asked who the key targets were. The first answer was pretty good–it was some of the regions that were within close proximity. Then people around the room kept saying “well, what about…” and “we can’t forget…” and “we don’t want to alienate…” And the President says in serious tone: “we target everyone, because it could be anyone really”.
  • In a competitive category, no one brand can do it all. Focus makes you decide whether to be better, different or cheaper. Giving the consumer too many messages about your brand will confuse them as to what makes your brand unique. Trying to be everything is the recipe for being nothing. I was lucky that my first marketing job at General Mills was managing child cereals, where each quarter, I had to do a promotion on 5 different cereals. So, twenty times per year, I had to work with the 2 x 2 inch corner of the cereal box and put a message that would make a 5-year-old scream at their Moms to buy the cereal. That taught me a lot about focusing my messaging.
  • Trying to do everything spreads your resources and your message too thin, so that everything you do is “ok” and nothing is “great”. With a long to-do list, you’ll never do great at anything. And in a crowded and fast economy, “ok” never breaks through so you’ll never get the early win to gain that tipping point that opens up the gateway to even bigger success. I once had a director working for me, who kept spinning around never getting anything done. His team was complaining that every time they started a new project, he’d come up with new ideas. I sat down with him and asked him to bring his project list for the up-coming quarter. He came in with 83 projects!!! I said “how do we narrow this list down to five”. He looked at me like I was insane.

When You Focus, Four Things Happen

  • Better ROI: With all the resources against one strategy, one target, one message, you’ll be find out if the strategy that you have chosen is able to actually moves consumers, drives sales or enhances other key performance indicators. Did you actually get done what you wanted to get done? If you spread those resources, you may never see any movement and then figure your strategy is wrong.
  • Strong Reputation: When you only do one thing, you naturally start to become associated with that one thing. With consumers, you get the reputation as the “fast one” or the “great tasting”. And internally, as people in the company start to align to your one thing, eventually you become very good at that one thing. Look at Volvo with “safety”. Every consumer message for 30 years is about safety. And internally, everyone at Volvo is fixated on safety, coming out with new safety innovations ahead of everyone else. Yes, Volvo’s have leather seats, go pretty fast, have a CD player and even come in multiple colours. But they don’t feel the need to have to say it.
  • More Competitive: As your reputation grows, you begin to own that one thing and your are able to better defend the positioning territory. As categories mature, brands start to stake claims and if you’ve got something that’s unique, relevant and motivating, you’ll be able to own it.
  • Bigger and Better P&L: As the focused effort drives results, it opens up the P&L with higher sales and profits. With a better ROI, you get to go back to management and say “it worked” and they’ll say “ok, let’s increase the investment”. And that means more resources will be put to the effort to drive even higher growth. As you efficiently drive the top-line, the P&L opens up a bit and becomes easier for a brand leader to work with.

While many start-ups or smaller brands use this strategy, the ideals behind the BLOWFISH strategy are relevant to everyone. Look and act bigger than you are. Take all of your resources and put them to one target, one message, one time period with fewer bigger bets that you know will pay off. Wait a second, that’s starting to sound like Marketing, not just this crazy BLOWFISH strategy.

Like a BLOWFISH, brands need to look and act bigger than they are

To read more on brand strategy, here’s a training workshop we lead on brand strategy:

Also, if you’re interesting in Beloved Brands Training Programs for brand management, feel free to contact us to learn about our one day or three day boot camps for brand leaders. We believe that better leaders make better work which produces better results. Here’s more information.

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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