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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10 Ads that will definitely leave you with goose bumps (get some tissues ready)

Posted on 2 CommentsPosted in Beloved Brands in the Market

goosebumps-101027-02When clients say they want emotional advertising, I usually say “I can’t wait to see this emotional brief you wrote”. Without understanding the emotional space you wish to own in your consumer’s heart, asking for an emotional ad, feels like a random game of chance.

Here are ten ads that do a fantastic job going into the emotional space, whether it’s a mass retailer, a utility or a shoe company. They do a nice job trying to connect the consumer tightly to the brand. While the ads do that, does the brand do what it takes to back it up when you experience that brand? In some cases, but not all.

Google “Paris”

For all the romantics, this is one of the best ads. They tell the complete story through google searches, with a few surprises like the airline ticket, wedding bells and of course the baby. Extremely creative.

 

Nike’s “If You Let Me Play”

Nike released this inspiration way back in 1995, outlining the benefits of having girls play sports. Brands such as Always “throw like a girl” were inspired by this type of message.

 

P&G “Thank you mom”

Back in the 2012 London Olympics, P&G was making an attempt at a Master Brand strategy. This is a beautiful ad, that is a nice salute to moms around the world, whether your child is an Olympian, or not.

 

Ram “Farmer’s”

Aired during the Super Bowl, it’s one of the best spots I have ever seen. Using Paul Harvey’s story telling hit a positive vibe with Farmers, and Americans in general. Simplicity of idea, yet story telling at it’s best.  They didn’t over-do the branding, but consumers were so engaged in the ad, they were dying to know who is it that’s telling this story. While everyone else is being loud, maybe being so quiet stands out. 

 

 Canadian Tire “Bike Ad”

This ad makes me cry every time. We can all remember our first bike and how special it is. In Canada, Canadian Tire was that store, prior to Wal-Mart entering the market. Now, Canadian Tire can’t deliver on this promise, because it now resembles Wal-Mart. No longer is it where you go for your first bike, but rather where you go buy Tide when it’s cheap.

 

Bell “Dieppe”

Wow, a utility delivering an ad that gives you goosebumps. I have been to that beach in Dieppe and it does command such intense feelings. As you can tell from the phone at the end, this was in the early days of Cell phones, trying to link the idea of connecting anywhere. While this is just an ad, I do wish that utilities would try harder to connect with consumers at every stage of the consumer’s buying journey.  

 

John Lewis “Christmas 2011”

Every Christmas, British retailer John Lewis has been releasing campaigns around Christmas.  To me, this one is the best, especially the ending. John Lewis is an employee-owned retailer, with a very unique culture that delivers on the brand.  

 

Budweiser “9/11”

Aired only once, only a few months after 9/11 the context of this ad is paramount to the emotion. An amazing salute, by the brand, to the heroes of 9/11.

 

Pfizer “More than Medication”

A nice twist. The ad appears to be a typical rebellious teenager, but he turns into an angel, with a big message for his sister.

 

Nike “Find your Greatness”:

Aired during the 2012 Olympics, this ad was very high risk, but also ran counter to all the athlete ads. There are many types of motivation, for some of us, Michael Jordan is the inspiration. But not all of us are Michael Jordan. This kid running is the average person that gets out there and makes it happen.My hope is that it inspires you do get out there and “just do it”, on your own terms.

 

To see a training presentation on getting Better Marketing Execution, click on the link 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. 

Positioning 2016.112

 

10 ways to build an exceptional Customer Experience, just by saying “stop it” to these brand killers

Posted on Posted in Beloved Brands Explained

 

 

There is only one source of revenue: Your Customers!!!

The most Beloved Brands create a brand experience that lives up to even over-delivers against the brand’s promise. I always like to remind myself that the customer is the most selfish animal on the planet, and deservedly so, because they have given you their hard-earned money. Brand Leaders are always fixated on driving demand to increase share and sales. Yet they usually only reach for marketing tactics like advertising, special promotion or new products. Many tend to forget about creating exceptional customer experiences. It takes years to get customers to change their behavior and move away from their favorite brand and try yours. Yet it takes seconds of bad service for you to lose a customer for life.

Do you treat those who love your brand better than you treat other customers?  You should. You can never lose their love, and then you have to find ways to use that love to get them to influence others in their network.

As we map out how consumers buy and experience brands, we have created 5 main consumer touch-points that will impact their decisions on whether to engage, buy, experience and become a fan. Our five consumer touch-points we use are:

  1. Brand Promise: Brands need to create a simple brand promise that separates your brand from competitors, based on being better, different or cheaper.
  2. Brand Story: 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.
  3. Innovation: Fundamentally sound product, staying at the forefront of trends and using technology to deliver on your brand promise.
  4. Purchase Moment: The moment of truth as consumers move through the purchase cycle and use channels, messaging, processes to make the final decision.
  5. Brand Experience: Turn the usage of your product into an experience that becomes a ritual and favorite part of their day.
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Here are the 10 customer experience things that you should STOP DOING:

#1: Stop it with the attitude of “I’m in shirts not ties”.

It can be extremely frustrating walking up to an employee of a store who has no clue about anything but their own little world. And even worse when they just point and say “go over there”. The better service is those who take the extra step by jumping in and helping and those know what’s going on in every part of the brand–not just their own world.Stop Try asking someone at Whole Foods where something is and they will walk you right over to the product you’re asking about and ask if you need anything else.

#2: Stop it when you make the customer do the work.

The airlines have been shifting all their work over to customers for years–boarding pass, bag tag and now even lifting your suitcase up onto the conveyor belt. While it might help you control your costs in the short-term, you’ll never be a Beloved Brand and you’ll never be able to charge a premium price for your services. Instead, in a highly price competitive marketplace, you just end up passing those cost savings onto to the customer in lower prices. No wonder most airlines are going bankrupt.

#3: Stop it when you feel compelled to bring up the fine print when dealing with a customer problem.

A year ago, I had a problem with a laptop I bought, but I felt extra confident because I had paid extra money to get the TOTAL service plan. Yet with my first problem with the laptop, I was told the TOTAL service plan did not include hardware,software, water damage or physical damage. 1e1d5d079e23366d1149ea834ce8102f62d562519d45930ae0c0fb1b485ffff7Are you kidding me? With a computer, what else is there? As a consumer, I had gone through the brand funnel–from consideration to purchase–and made a choice to buy your brand. Yet, at the first sign of my frustration with your brand you are deciding to say to me “don’t come back.” I had a problem with my iPhone and returned it to the Apple store. They went into the back room and got a new iPhone for me and said “would you like us to transfer all your songs over?” I was stunned. Apple took a problem and turned me into a happy customer who wanted to spend even more money with them.

#4: Stop it when you send a phone call to an answering machine.

We’ve all experienced this and secretly many of us have done this. Now if you know you’re going to get a machine ask the customer: “is it OK if you get their machine”. But willingly sending a caller into a machine is just plain lazy and it says you just don’t care. Treat them with the respect that a paying customer has earned with you and make sure there is a human on the other line.

#5: Stop it with processes that make it look like you’ve never been a customer before.

While brand leaders tend to think they own the strategy and advertising, it is equally important that you also own the customer experience. While the positive view of the purchase process is driven by a brand funnel, you should also use a “Leaky Bucket” analysis to understand where and why you are losing customers. It is hard work to get a customer into your brand funnel, it is great discipline to move them through that brand funnel by ensuring that every stage is set up to make it easy for the customer to keep giving you money. Step into the shoes of your customers and experience the brand through their eyes on a regular basis so you can effectively manage the experience. You should always be shopping your own category, just to see how it is to buy your brand. When you find leaks to the brand funnel, find ways to close them so you can hang on to the customers you’ve worked so hard to get into the doors.

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#6: Stop it with trying to win every customer interaction.

This past Christmas I was lucky enough to be 34th in the return line at Best Buy. For some reason they put the most angry person they could find to manage the returns line. I suppose it lowers their return budget, but it also drives away customers. With every customer, this guy was hell-bent on trying to break the customer’s spirit so they’d avoid returning the product. As I watched, I felt like I was headed into a police interrogation. On the other hand, if you want to see a comfortable returns policy, try returning something at Costco. They take the stance that they are on the side of their “members” and help you go up against the big bad manufacturers. If you don’t have your receipt, they’ll print it out for you. At Costco, the returns process is where they earn that $50-100 membership price. Just maybe you should start treating your customers like members and see if it forces you to see things differently.

#7: Stop it when you are explaining your problems instead of listening to the customer’s problems.

When a place is completely messed up, some workers feel compelled to tell you how stupid they think this is. Unfortunately, this constantly complaining ‘why me’ attitude can quickly become systemic and contagious within the culture. It takes an effort to turn the culture around. The best way is to create service values, driving process that helps reward good service, and driving personal accountability within everyone. Then reward behavior that matches up to the service values.

#8: Stop it with the hollow apologies that seems like you are reading from a manual.

No one wants to deal with people who just feel like they are going through the motions. It’s crucial that you set up a culture that is filled with authentic people who have a true passion for customers. TD Bank retail staff does an exceptional job in being real with customers. When you consider that they hire from the same pool of talent as all the other banks, it’s obviously the culture of caring about their customers that really makes the difference in separating their customer experience from others.

#9: Stop it when you try using my complaint call as a chance to up-sell me. The only up-sell is to get me to come back again.

Last month, I had an issue with my internet being way too slow. When I called my local service provider, instead of addressing how bad their current service was, the first response was to try selling me a better service plan that with a higher monthly fee and a higher priced modem. Then suddenly, they tried to sell me a home security system. If a customer is a point of frustration, why would they want to pay you even more money for a bad service. You haven’t earned my business. The best in class service is the Ritz Carlton who proactively look to turn customer problems into a chance to WOW the customer. It’s built right into the culture as employees are encouraged to brainstorm solutions and empowered with up to $2,000. Instead of up-selling, the Ritz spends the extra effort to ensure you’re satisfied with the service you’ve already paid for.

#10: Stop it when it just becomes a job for you and you forget the passion you have for the business.

When your team starts to feel like they have no power, they just start to show up as pencil-pushing bureaucrats. There’s no passion left–as it’s been sucked out by a culture with a complacent attitude and a bunch of check in-check out types who follow the job description and never do anything beyond it.  Ask yourself “why do you come to work” and if the answer doesn’t show up in your work, then you know that the culture needs a complete overhaul. If you don’t love the work, then how do you expect your customer to love the brand?  

The best Marketers manage their brand culture

Beloved Brands create an exceptional customer experience. They know it’s not just about advertising and innovation. As a consumer, I’ve become spoiled by the best of the brands who raise the bar and continue to surprise and delight me. Think of how special you feel when you are dealing with Disney, Starbucks and Apple. Compare that to how demoralized you feel when dealing with the airlines, utilities and electronics shops. For the Beloved Brands, they understand that Culture and Brand are One. The Brand becomes an internal beacon for the culture—and the brand’s people have to genuinely be the strongest most outspoken fans who spread the brand’s virtues.keep-calm-and-stop-it-stupid.jpg

As you look at your own customer experience, take a walk in your customers shoes and see where your customer would rate you. Are they with you because they love you and want to be with you or because they have to be with you? Even though they like the product, they may feel indifferent to your brand. And they’ll be gone at the first chance at an alternative. And as a brand leader, your brand is likely stuck on a rational promise, unable to separate yourself from competitors and instead you are left competing on price and promotion.

  • Begin by holding the culture up the lens of the brand’s Big Idea and ensure the right team in place to deliver against the needs of the brand.
  • Start finding ways to create a culture that is more consumer centric (customer first)
  • Begin to push the culture to create a unique delivery of the product experience. Use Leaky Bucket analysis to take a walk in your customers shoes and to discuss weaknesses.
  • Set up forums for innovation—that create an energy through the culture and one that starts to take risks on the best ideas.
  • Use a purpose driven vision, with a set of beliefs and values to challenge the team to create and deliver that experience.
  • Reward the behaviors that match up to your values, with both rewards and recognition. Creating a culture of wow stories motivates all employees to seek potential wow moments they can deliver.
  • Begin using power of a loved brand to attract and keep the best. Find fans of the brand who will become your front line spokespeople. They bring that passion for the brand.

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

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

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

Positioning 2016.112

 

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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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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Don’t be one of these 10 worst types of Advertising clients

Posted on Posted in How to Guide for Marketers

They say clients get the work they deserve. If you knew that being a better client would get you better Advertising, could you show up better? Would you actually show up better? There’s a reason why there are so many Agency Reviews: clients can’t really fire themselves. However, if you fire your current Agency and then you don’t show up better to the new Agency, they will be doomed to fail from the start. And the cycle will continue.

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I believe that most Brand Leaders under-estimate their role in getting great advertising creative. I have seen OK agencies make great work for an amazing client. I have also seen the best agencies fail dramatically for a bad client. My conclusion: the client matters more than anyone else, as they hold the power in either enabling or restricting impactful advertising from happening. Great clients communicate their desires with passion to inspire their Agency; they hold everyone accountable to the strategy and stay open to explore new solutions through creativity. Great clients are wiling to stake their reputation on great work. If you knew that being a better client would get you better work, do you think you could show up better?

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The 10 worst types of Advertising clients

#1: Clients who say: “You’re The Expert”

While intended to be a compliment to the Agency, it is actually a total cop-out by the client!  You really just give the agency enough rope to hang themselves. As a Brand Leader, you play a major role in the process.  You have to be engaged in every stage of the process and in the work. Bring your knowledge of the brand, make clear decisions and steer the work towards greatness.  

#2:  Clients who say: “I never Liked the Brief”

These passive-aggressive clients are usually insecure about their own abilities in the advertising space.  They keep firing their agency instead of taking ownership, because it is easier to fire the agency than fire yourself. A great Brand Leader never approves work they don’t love. If you don’t love the work, then how do you expect the consumer to love your brand? As the decision maker, you can never cop-out, and you never have the right to say “I never liked…”

#3:  Clients who have a Jekyll & Hyde personality

When Brand Leaders bring major mood swings to the Ad process, it is very hard for the agency. While clients are “rational” people, agencies are emotional and prone to your mood swings. monster_boss_at_conference_table_1600_clr_14572The worst thing that could happen is when your mood swing alters the work and you end up going into a direction you never intended to go, just based on a bad day you had. The best Brand Leaders stay consistent so that everyone knows exactly who they are dealing with.   

#4:  The Constant “Bad Mood” client

I have seen clients bring their death stare to creative meetings where hilarious scripts are presented to a room of fear and utter silence. The best Brand Leaders should strive to be their agency’s favorite client. For an odd reason, no one ever thinks that way. Advertising should be fun. If you are having fun, then so will your consumer.

#5:  Pleasing the mysterious “boss” who is not in the room

When the real decision maker is not in the room, everyone guesses what might please that decision maker. As a Brand Leader, you have to make decisions that you think are the right thing, not what your boss might say. Make the ad you want and then find a way to gain alignment and approval from your boss. And if you are the boss who is not in the room, let the creative process unfold and hope that it pleasantly surprises you. 

#6:  The dictator client

The best ads “make the brand feel different”. If we knew the answer before the process started, the ads would never be different, would they? When a Brand Leader comes in with the exact ad in mind, then it’s not really a creative process, it just becomes an order taking process. When you TELL the agency what to do, there is only one answer:  YES. But when you ASK the agency what you should do, there are many answers. When they come back to you with many, it makes your job of selecting the best, much easier. Revel in the ambiguity of the process, let the work happen.

#7:  The long list of Mandatories client

Clients who put 5-10 mandatories on the brief forces the agency to figure out your needs instead of the advertising problem. You end up with a Frankenstein. I have seen briefs that say no comedy, must use Snookie, setting must be a pharmacy, put our new lemon flavor in the ad, must include a demo. My challenge to Brand Leaders is that if you write an amazing creative brief, you won’t need any mandatories at all.

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#8:  The kitchen sink client

The “just in case” clients who want to speak to everyone with everything they can possibly say. If you put everything in your ad, you just force the consumer to make the decision on what’s most important. Consumers now see 7,000 brand messages every day, yet only engage in a handful each day. When you try to be everything to everyone, you end up nothing to anyone.

#9: The client who keeps changing their mind

Advertising is best when driven by a sound process, with enough time to develop ideas against a tight strategy. Think of it as creativity within a box. However, clients that keep changing the box will never see the best creative work. The best Brand Leaders control the brand strategy and give freedom on the execution.

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#10:  The Scientist client

Some clients think THERE IS AN ANSWER. The world of SEO and Digital tracking and advertising testing seems to be encouraging this mindset more than ever. Where you might think “precision”, I see navel gazing. Be careful giving up your instincts to the analytics. You might miss the blue-sky big picture or the freight train about to run you over. As a Brand Leader, you can’t always have THE answer. Too much in marketing eliminates risk, rather than encourages risk taking.  That might help you sleep better, but you’ll dream less. Revel in the ambiguity of the process. It is ok to know exactly what you want. Just not until you see it.

 

Being a better client is something you can learn.

Advertising takes experience, practice, leadership and a willingness to adjust. Ask for advice. Watch others who are great. Never give your Agency new solutions, just give them new problems. Inspire greatness from your Agency; yet never be afraid to challenge them for better work. They would prefer to be pushed rather than held back. Be your agency’s favorite clients, so the agency team wants to work on your brand, not just because they were assigned to work on your business. Think with strategy. Act with instincts. Follow your passion. Be the champion who fights for great work even if you have to fight with your boss. Make work that you love, because if you don’t love the work, how do you ever expect the consumer to love your brand?

Below is a presentation for a training workshop that we run on getting Better Marketing Execution, whether that is through traditional Advertising, social, digital, search, event, retail stores and public relations. 

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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Is the Tim Horton’s brand at risk? How can they re-kindle the Love?

Posted on 1 CommentPosted in Beloved Brands in the Market

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Said with Canadian pride, Tim Horton’s is not just an emotional decision, it’s a personal one. How we feel about Tim’s is in part irrational. We are loyal, un-relenting, outspoken, and possessive. And we are OK to wait in a long line to get our double-double. Tim’s is still a Beloved Brand, but there are signs it might be getting tired and could be at risk at losing. The most Beloved Brands connect with their consumers in five common ways: a brand promise (positioning) consumers love, an emotional brand story (advertising) freshness (innovation), purchase moment and finally the experience (backed by the culture and operations).

 

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Over the last 20 years, Timmy’s had consistently nailed all five, which is what made it our most Beloved Brand.  But in the last few years, we are seeing slippage on the advertising and the customer experience.  We can see that in the stock price for Tim Horton’s. If you invested $10,000 in 2009, your money would have doubled in just 2 and 1/2 years–considering how badly the stock market was doing this would have been an ideal place for your money.  But since then, the stock has gained very little, and has basically been flat for the last 9 months. That’s not worthy of panic just yet, but from usually we see issues with Brand Health before we see issues of Brand Wealth. It seems that Tim’s has been so focused on the US expansion over the last two years, that they risk letting the brand slip in Canada.

Let’s use the five Brand Connectors to assess Tim Horton’s Brand Health:

  • The “comfortably Canadian” Brand Promise has been brilliant over the past 20 years, striking an emotional cord with our Canadiana more than any other brand. They have created a humble brand, with a simple comfortable menu.  Timbits-500x254It’s not the best food or coffee, but it’s comfortably predictable. People always point to how Tim’s coffee loses in blind taste tests. So would my mom’s dried out and burnt Roast Beef. But I love my mom’s roast beef, because I familiar with it, and it makes me feel comfortable. I’d grade the brand promise an A+.
  • As for the Brand Story, it is what has made the Brand, with deeply emotional and engaging advertising. Magical Canadian story telling at it’s best, whether an old woman walking up a hill or a grandfather at the hockey rink. What’s happened the last few years? Nothing. The last two great spots that connected with consumers were at the 2010 winter Olympics with the Sidney Crosby “wouldn’t it be great…” TV Ad and the other about an immigrant family arriving at a Canadian airport. Those spots made us proud to be Canadian and Tim’s owned that pride. But, the last few years, all I see are “cute” product spots, with a media plan completely void of the anthemic beautiful ads that made Tim’s a Canadian Icon. Please don’t show me how coffee is made. That’s completely off the brand character.  Tim’s has to return to using deeply emotional story telling to deliver the “comfortably Canadian” brand promise. I’d give the advertising an A+ for pre-2010, C+ since. I’d like to see Tim’s return to doing more ads like this one, a simple story about hockey, but beautifully told about a grandfather visiting the hockey arena to see his grandson play hockey:

 

 

  • As for Freshness, the innovation pipeline with Lemonade, breakfast sandwiches, grilled cheese, ice caps, maple donuts and oatmeal all delivering the “comfortably Canadian” brand promise.  Nothing wild, nothing crazy, very Tim’s. In terms of coffee, Tim’s has issues with McDonald’s which has an amazing coffee and a great trial strategy offering free coffee for a week. Tim Hortons vs McDonalds CanadaMost published blind taste tests show that McDonald’s clearly beats Tim’s. But improving the Tim’s coffee might be like changing the Coke formula. I’d rather Tim’s build on the comfortable taste of the Tim’s coffee linking it to memories. I’d give Tim’s an A- on innovation, lots of hits, a few flops.
  • The big gap I see “brewing” (pardon my pun) is the the purchase moment, where I am seeing a huge drop off.  The expansion utilizing the franchise model has created a dramatically inconsistent experience from one store to the next. I’m starting to hear a lot of horror stories from consumers. In my last 10 visits to Tim’s, I received friendly and polite service just once. (a shout out to the Aurora store where you feel good leaving)  Most times, the service is efficient, but completely impersonal. Rarely do you hear “please” and “thank you” from the staff. It’s not as polite as McDonald’s and not as friendly as Starbucks. If you want to deliver the brand promise of “comfortably Canadian” Tim’s needs to step it up on customer service to deliver that promise.  Polite and friendly are always free. Tim’s needs start by setting up customer service values, strategically aligned to the brand promise. They need to create action standards on service to hold franchisees accountable to delivering the brand promise. And they need to create a training program to help staff deliver the service values.  Until we see some improvement, the grade for Tim’s experience ranges from an F to an A+, due to inconsistencies. But overall, I’d give the Tim’s experience a D+.

So the report card for Tim’s looks like my grade 9 report card. A few A’s, a C+ and a stupid D+.  Most business people think “Brand” is what the Marketers do. And Culture should be left to Human Resources.  Everyone is responsible for Brand and Culture. Brand is not just about logos and ads, but is equally important internally where it acts as an internal beacon for everyone to follow. How does Tim Horton’s want their people to show up?  What behavior should be rewarded? If the Tim’s culture is not set up to deliver the brand promise, the risk is it all comes crashing down.  To read more on how Culture and Brand go together read:  Brand = Culture: How Culture can Help Your Brand Win

For the Tim’s brand succeed in the future and stay a Beloved Brand in Canada, they need to take that “Comfortably Canadian” Big Idea down to every part of their organization. There might be signs that the new CEO understands what’s happening at the store level.  He recently stated: “Future battles are not going to be won, in my view, with who has the best strategy or who has the best innovation. The companies that will win will be the companies that can execute flawlessly at the store level.”

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It’s time for Tim Horton’s to step it up on Service

Here is a powerpoint presentation on “What makes a Beloved Brand”  Click on the arrow below to follow:

 

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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Brands need to drive Return on Love (R.O.L.)

Posted on 1 CommentPosted in How to Guide for Marketers

I created the brand love curve, which shows the differences in how consumers feel about a brand as they move through five stages. It defines their feelings as unknown, indifferent, like it, love it and onto the beloved brand status. Consumer Strategy

It takes a strategic mind to figure out brand love. 

For unknown brands, the strategic focus should be to stand out so consumers will notice the brand within a crowded brand world. For indifferent brands, the strategy must establish the brand in the consumer’s mind so they can see a clear point of difference. At the like it stage, the strategy is to separate the brand from the pack, creating happy experiences that build a trusted following. Then, at the love it stage, the focus shifts to tugging at heartstrings to tighten the bond with the most loyal brand fans. At the beloved brand stage, the strategic challenge is to create outspoken, loyal brand fans who are willing to whisper to their friends on the brand’s behalf.

The necessary ingredients to create brand love

Everything must be about the consumer:

You need to know your consumers as well as you know your brand. Dig deep to understand and appreciate the consumer insights, enemies and needs. Emphasize consumer benefits, not features. Since consumers always wonder, “What’s in it for me?” communicate what they get from you and talk about how your brand makes them feel.

Dare to be different:

Your brand needs to stand out as being better, different, cheaper, or else it won’t be around for very long. Be the brand that defines your unique value, rather than adding more clutter to the mountain of clutter.

Build everything you do around your brand idea:

Your brand idea is the first point of connection and creates the lasting impression. The brand idea is the reason consumers first buy. Every time your brand delivers, the bond tightens just a little more. Whenever you fail to deliver, the consumer goes into doubt mode, wondering if they will stay with your brand.

Breakthrough focus:

You must focus your brand’s limited resources to key breakthrough points you believe will tighten the bond with your consumers, putting the brand in a more powerful position to drive higher profits. You have to know your consumer, know what your brand stands for and be willing to focus on the strategies that will pay back in building the brand.

Passion matters:

You must exhibit incredible passion in the marketing execution, consistently focused on surprising your consumers, with a goal of becoming one of their favorite brands. Always remember “I love it” is the highest bar you can set for achieving great work. If you do not love the work, how can you ever expect your consumer to love your brand?

Brand love generates brand power

The tighter the bond a brand creates with their consumers, the more powerful the brand will become with all stakeholders. Think of brand love as stored energy a brand can unleash in the form of power into the marketplace. You can use that power with consumers, competitors, new entries, employees, influencers, media, suppliers and channel partners.

These beloved brands command power over the very consumers who love them, as consumers feel more and  think less. These consumers pay price premiums. They line up in the rain. They follow the brand as soon as it enters new categories and relentlessly defend the brand to any attackers. Finally, they cannot live without the brand.

Beloved brands have power over channel customers, who know their consumers would switch stores before they switch brands. Stores cannot stand up to the beloved brand; instead, they give the brand everything in negotiations. The beloved brand ends up with stronger store placement, better trade terms and better promotions from retail partners. 

Power over competitors

The competitors, whether current competitors or new entries, cannot match the emotional bond the beloved brand has created with their brand fans. The beloved brand has the monopoly on emotions, making the consumer decisions less about the actual product and more about how the experience makes consumers feel. Unless a new brand has an overwhelming technological advantage, it will be impossible to break the emotional bond the consumer has established with the beloved brand.

Power over those who promote your brand

The beloved brand also has a power over the media whether it is paid, earned, social or search media. With paid media, the beloved brand gets better placement, cheaper rates and they are one of the first calls for possible brand integrations. The beloved brand is considered newsworthy, so they earn more free media via mainstream media, expert reviews and bloggers. 

Being a famous, beloved brand helps bypass the need for search engine optimization (SEO). The beloved brands become part of the conversation whether it is through social media or at the lunch table at work. Beloved brands can use their homepage website to engage their most loyal users, inform the market of upcoming changes, allow consumers to design their version of the brand and then sell product directly to brand lovers.

The beloved brands have power over key influencers, whether they are doctors recommending a drug, restaurant critics giving a positive review or salespeople at electronics shops pushing the beloved brands. These influencers become fans of the beloved brand and build their own emotions into their recommendations.

Power over those who make your brand

Suppliers serve at the mercy of the beloved brand. The high volumes drive efficiencies of scale that drive down production costs, backing the supplier into a corner before they offer up most of those savings. Plus, the supplier becomes willing to give in, so that they can use the beloved brand as a selling tool for their supplier services to other potential brands.

Beloved brands even have power over employees, who want to be part of the brand. They are brand fans, who are proud to work on the brand. They embody the culture on day 1 and want to help the brand achieve success.

Brand love means brand profits

With all the love and power the beloved brand generates, it becomes easy to translate that stored power into sales growth, profit, and market valuation. Here are the eight ways a brand can drive profits: 

    1. Premium pricing
    2. Trading up on price
    3. Lower cost of goods
    4. Lower sales and marketing costs
    5. Stealing competitive users
    6. Getting loyal users to use more
    7. Entering new markets
    8. Finding new uses for the brand.

Beloved brands can use higher prices and lower costs to drive higher margins 

Most beloved brands can use their loyal brand lovers to command a premium price, creating a relatively inelastic price. The weakened channel customers cave in during negotiations to give the brand richer margins. Satisfied and loyal consumers are willing to trade up to the next best model. A well-run beloved brand can use their high volume to drive efficiency helping to achieve a lower cost of goods 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 the beloved brand. The beloved brand will operate with a much more efficient marketing spend, using their power with the media to generate lower rates with plenty of free media. Plus, the higher sales volumes make the beloved brand’s spend ratios much more efficient. The consumer response to the marketing execution is much more efficient, giving the brand a higher return on investment. 

Beloved brands use higher shares of a bigger market to drive higher volume

The beloved brands use their momentum to reach a tipping point of support to drive higher market shares. They can get loyal users to use more, as consumers build the beloved brand into life’s routines and daily rituals. 

It is easier for the beloved brands to enter new categories, knowing their loyal consumers will follow. And finally, there are more opportunities for the beloved brand to find more uses to increase the number of ways the beloved brand can fit into the consumer’s life.

 

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

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

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

Beloved Brands book

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

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

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

Beloved Brands: Who are we?

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

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

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

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

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

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

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

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

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

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

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What’s your view on Tiger Woods as a brand? #1 in golf, #1 in endorsements (again)

Posted on 1 CommentPosted in Beloved Brands Explained

As they are about to tee off at this year’s US Open, the question remains simply:  Will Tiger Win?   Even if you hate Tiger, you’re probably asking that.  Tiger has had 4 years of no majors.  He’s been a complete collapse in front of our eyes.  He’s been a complete idiot, his wife left him, sponsors fired him.  And yet, now he’s back to #1 in golf and incredibly back to #1 in endorsements.  He’s certainly not as popular as he was before the incident, at least among the masses.  But while there are less Tiger Fans, the depth of love the fans that remain is even more intense.   And for any brand, you’d rather be loved by a few than tolerated by everyone.  

From 1997, Tiger Woods was the media darling.  What a great story.  
  • His dad was a green beret and taught Tiger all the discipline of the green berets, which Tiger then transferred into the world of golf.  
  • The video clips of him as a 3-year-old hitting the driver on the Mike Douglas show.  Cute kid, who knew he’d one day wind up being TIGER WOODS.
  • He was a 3-time US Amateur Champion, a teenager, wearing shorts, skinny, hitting it longer than anyone else.  
  • Run-away winner of the Masters at 21-years old.  With that win, golf got younger, cooler and more urban.  
  • Tiger signed with Nike of all companies.  A cool new line of clothing, cool golf balls and  amazing TV ads.  
  • Every time Tiger was playing in a golf tournament, the TV ratings went through the roof.  tiger-woods-excitementWhat you may not realize is the TV network will show every shot that Tiger takes–and likely even cutaway to him arriving and hitting on the range about 3-4 times.  
  • He was the #1 golfer, indisputably the best ever.  Other superstars (Ernie, Phil, David, Sergio) were intimidated and would collapse in fear.  By 33, Tiger had 14 Majors, and destined to easily destroy Jack’s record of 18.  
  • He had an impeccably clean image.  He was completely wholesome all-american.  He was married to a Swedish Model who was a nanny, he had two darling kids.  He was nearly flawless.   Yes, he was intense on the golf course, but all was forgiven.  

This was a bit like Jack Kennedy, where the writers had suspicions, yet no one knew.  

The Comeback Story

America loves a comeback story.  Tiger’s Comeback wasn’t exactly smooth.  Following his indiscretions that led to the divorce and the sex addiction clinic, Tiger would get far worse before he’d get better.  On the course, he was a disaster, duck-hooking, missing short putts, missing cuts and collapsing when he looked like he might win.  Off the course, Tiger was a first class JERK.  He was rude to fans and reporters.  Temper tantrums.   He fired his long time Caddy.   He fired his swing coach.  The wholesome Tiger, who was the face of golf, was now the rude Tiger.  tiger2

Tiger was a lousy golfer in 2010 and was just OK in 2011.  He kept changing his swing.  Even the naked eye could see what was wrong with it.  At times, it looked like Tiger was done.  Late 30s now, might never catch Jack and looking like he was struggling.  By 2012, there were signs of Tiger was returning to form.  He won a few tournaments, was in contention in the majors. And by 2013, Tiger is back to being Tiger.  He’s won more than anyone this year, looks back to his dominant self.   Yet he still hasn’t won a major.  

Do you think Tiger will win 5 more majors and beat Jack?  Time is ticking.  

And as of 2013, Forbes has just announced that Tiger is now the #1 on Forbes’ annual ranking of the world’s highest-paid athletes.  Forbes estimates that Woods pulled in $78.1 million over the last year from prize money, endorsements, appearance fees and golf course design work.   After the incidents of 2009, he lost five sponsors, $50 million in annual income, his place atop the world golf rankings and his marriage.  His resurgence on the links boosted his prize money over the last 12 months to $13.1 million, double his total from the prior year.  His endorsements include EA sports, Nike, Rolex, Upper Deck, TLC Eye Centers, NetJets, Japan’s Kowa and sports nutrition firm Fuse Science.

Nike was heavily criticized this spring for an ad they took out:  

woods1

What’s the Brand Lesson Here?

From 1997 to 2009, Tiger was popular among the masses.  When he was on TV, non-golf fans would grab a beer and watch.  He was liked by nearly everyone.  After 2009, he was an embarrassment and sponsors ran.  No one seemed to like him.  Those that loved Tiger loved him quietly, and were frustrated by his poor on course performance.  

I’m not in the Tiger club.  But i can feel those around me that are.  I can hear and feel the intensity.  And the intensity of those hoping he loses is fading.  

As we’re now in 2013, Tiger is back.  While not everyone likes him now, we can certainly see he has a core base of fans who LOVE him.  Tiger’s brand promise has been simplified to winning golf.  He’s not trying to be a great guy.  He’s trying to be an OK guy.  But the fans of Tiger just want to see him win.  They know he’s personally flawed and they really don’t care.  They are inspired to see the best golfer of all time.  It is always far better as a brand to be loved by a few than liked by everyone.  That love becomes a source of connection with core fans and a source of power for the Tiger brand.   With brand power, Tiger has been able to drive added revenue for himself off the course.  More shirts, more video games and more watches.  If Tiger wins a major and continues to be “an OK guy”, I suspect we’ll see a few main stream endorsement deals for Tiger.  

Tiger 2.0 is Loved by a few not liked by everyone.  

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

Other Stories You Might Like
  1. How to Write a Creative Brief.  The creative brief really comes out of two sources, the brand positioning statement and the advertising strategy that should come from the brand plan.  To read how to write a Creative Brief, click on this hyperlink:  How to Write a Creative Brief
  2. How to Write a Brand Plan:  The positioning statement helps frame what the brand is all about.  However, the brand plan starts to make choices on how you’re going to make the most of that promise.  Follow this hyperlink to read more on writing a Brand Plan:  How to Write a Brand Plan
  3. Consumer Insights:  To get richer depth on the consumer, read the following story by clicking on the hyper link:  Everything Starts and Ends with the Consumer in Mind

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

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

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