Case Study: How Special K moved from indifferent to beloved

Posted on Posted in How to Guide for Marketers

Special K is a great case study of a brand who has gone from a one-dimensional boring cereal into something beyond what the brand could imagine. Cereal is one of those categories filled with a touch of magic, many of the beloved brands coming out of the “Mad Men” days of TV advertising. Brands like Corn Flakes, Cheerios, Rick Krispies and Froot Loops all have a certain wholesome charm. But while those brands have ‘historical equity’ it’s not really an equity that can drive sales. I’d say these brands are in a bit of a time warp, a throwback to simpler times when Cartoons were only on Saturday mornings.

Special K

Special K was an indifferent brand

I worked in the cereal business back in the 1990’s and we never thought anything about Special K. It just sat there with a very small and dying share. Basically, it was just the one flavor of cereal. Zero innovation. Just Rice Krispies crushed differently. Trust me, I was on the General Mills side and no competitors were worried about Special K.

The brand idea for Special K has been connected with weight loss since the mid 80s. The ads were focused on 110 calories–which is just a feature, not a benefit for the consumer. And honestly, if you look at most cereals, they’ll say 120-140 calories on the box.

This is a classic example that no one cares what you do until you care what they want. No one at Special K was putting themselves in the shoes of the consumer and asking “so what do I get?” or “how does this make me feel?” It was implied, but it was buried in the woman looking at herself in the mirror.

Our brand love curve

In the consumer’s mind, brands sit on a Brand Love Curve, with brands going from Indifferent to Like It to Love It and finally becoming a Beloved Brand for Life. At the Beloved stage, demand becomes desire, needs become cravings, thinking is replaced with feelings. Consumers become outspoken fans.

Special K was clearly an Indifferent Brand. There was very little consumer opinion, and for those who did buy Special K, they weren’t exactly the most ardent fans of the brand. Not only was the original flavor fairly bland, but everything about the brand was bland. Special K needed to stand for something. It needed an idea. They were dancing around the idea of weight loss but not really bringing the benefit to life.

A brand starts with an idea

The most beloved brands are based on an idea that is worth loving. It is the idea that connects the Brand with consumers. And under the Brand Idea are 5 Sources of Connectivity that help connect the brand with consumers and drive Brand Love, including 1) the brand promise 2) the strategic choices you make 3) the brand’s ability to tell their story 4) the freshness of the product or service and 5) the overall experience and impressions it leaves with you. Everyone wants to debate what makes a great brand–whether it’s the product, the advertising, the experience or through consumers. It is not just one or the other–it’s the collective connection of all these things that make a brand beloved.

 

Around 2000, Special K made a dramatic turn in the market. With all the diet-crazed consumers looking for new solutions, Special K had a stroke of brilliance when someone figured out that if you ate Special K twice a day for just two weeks, you could lose up to 6 pounds in 2 weeks. While all the other diet options felt daunting, this felt pretty easy to do.

While Special K had spent decades dancing around the weight loss idea, now they had a Brand Promise that was benefit focused and empowering: With Special K, just twice a day for 2 weeks, you can lose 6 pounds or better yet, drop a jean size. They stopped talking about the product and starting talking in the voice of the consumer.

The brilliant strategy is around the usage occasion of the second meal each day. Cereal had been a category that grew +3% for years, steady only with population growth and some demographics around boomers and echo generations. But now, there was finally a reason to eat cereal twice in one day.

Empowering Women

The communication of the Brand Story become about empowering women to take control using the Two Week Challenge. Here’s a very empowering ad around the “Drop a Jean Size” idea.

With a Brand Idea bigger than just a cereal, Special K’s innovation rivalled that of Apple. It started with the launch of Berry Special K that thrust the brand into a good tasting cereal, and has since added bars, shakes and water. Most recently, they’ve now launched potato chips (only 80 calories for 20 chips) and a Breakfast Sandwich option. it just goes to show you that it’s not about ‘out of the box’ ideas, but rather how you define the box. All these product launches are aligned to the idea of empowering women to maintain their weight. The diversified line up beyond cereal helps off-set any sales softness on cereal. This year, they’ve just announced they are re-looking Special K’s original recipe to keep the cereal share strong.

And rounding out the consumer experience is to take the challenge on-line, gives women a community of encouragement to help achieve their personal weight loss goals. Special K has also launched App for smart phones to help monitor weight goals. Special K has also tapped into time of year occasions around New Years and spring to re-enforce the brand messages.

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GAP Clothing: The fall from BELOVED all the way to INDIFFERENT

Posted on Posted in Beloved Brands in the Market

GAP Clothing was once a BELOVED Brand, back in the middle of the 1990s. It was loved by consumers, envied by marketers and revered in the retailing world.  In 1990, it celebrated it’s 1000th store opening and was the place to go for stylish trendy clothing at a reasonable price. At one point, GAP had an Inventory Rotation of “8 seasons” per year, just to keep up with the consumer’s desire to see new products as they walked through the GAP stores for the umpteenth time. Consumers couldn’t get enough of GAP.

Fast forward to 2011, GAP Clothing sales are down 19% this year and down over 25% since the peak of 2005. And they’ve just announced the closing of 200 stores–which will continue the downward spiral.   Who cares about inventory turns when people aren’t even walking into the stores?

This year, GAP filed a lawsuit against GAP Adventures saying they felt having the co-existance of the two brand names “caused confusion in the marketplace”.   Considering that GAP Adventures is having a record year and is one of the most BELOVED brands in the adventure travel business, you would think GAP Clothing would think that confusion was a good thing.   For GAP Clothing to be complaining about being mixed up with GAP Adventures feels like George Castanza complaining about being mixed up with George Clooney.

Brands ride THE LOVE CURVE, going from Indifferent to Like It to Love It and then it becomes a Brand For Life–at each stage gaining a more emotional consumer connection with the brand. GAP Clothing rode this curve all through the 70s and 80s and by 1995, it had achieved the enviable “Brand For Life” status, which very few brands achieve.

But GAP got greedy and forgot what made them great: trendy fashion for a stylish generation at a reasonable price. And who is the spokesperson for fashion:  the coolest people on earth…TEENAGERS of course. Every generation of Teens believes they are the most important people on earth and they want products that speak out for their generation. It’s all about them. They influence Music, Movies, TV Shows and Clothing and believe each has to speak directly to them and for them. Imagine being 15 in the late 90s, you’re walking in your favourite mall, trying to be as cool as can be, heading for your favourite clothing store. All of a sudden, you look up and your favourite clothing brand is now flanked by BABY GAP on one side and GAP MATERNITY on the other side. How could this brand speak for the teen generation, when your 2 year old nephews or your pregnant Aunt are wearing the same clothes you’re wearing?  GAP also forgot about feeding that desire for leading edge, trendy clothing–the whole reason for that “8 seasons” rotation of inventory.  Go into a GAP store this year, and you’ll realize how boring and drab the products have become.  In terms of the LOVE CURVE, GAP Clothing has slid from the BELOVED status to Like It all the way down to INDIFFERENT. No teenager today likes GAP. They don’t even care. Are you kidding me? Duh.

GAP is so confused as to what to do next. So what do brands do when they are confused? Well, they should look themselves right in the mirror, challenge themselves at the executive leadership team to address the issues directly with an honest assessment and a high willingness to change. That’s the ideal. Instead GAP did what a lot of brands do:  they changed their logo. Oh god!!! The logo change only lasted one week–such uproar that they pulled it so fast, no one really saw it.  So what did they do next? They closed 200 stores. Very strategic. Bu-bye GAP. Say hello to Benneton, Wranglers and Doc Martins  when you get to the obsolete stage.