20 thought starters to challenge brand managers to be better

Posted on Posted in How to Guide for Marketers

Here are twenty simple messages to provoke and challenge your thinking as a brand manager.

  1. Consumer Insight comes to life when it’s told in such a captivating way that makes people stop and say “hmm, I thought I was the only one who felt like that.:20 thought starters
  2. Can you explain your brand (or your personal brand) in 7 seconds, 2 minutes and 30 minutes? You should be able to organize your thinking.
  3. Strategic Thinkers see “what if” questions before they see solutions. They map out a range of decision trees that intersect and connect by imagining how events will play out. Moreover, they reflect and plan before they act. They are thinkers and planning who can see connections. Instinctual Thinkers see answers before questions. They get to answers quickly, and get frustrated in delays. They believe doing something is better than doing nothing at all. Instinctual thinkers opt for action over thinking. They are impulsive and doers who see tasks. They get frustrated by strategic thinkers.
  4. Learn to change your brain speeds, knowing when to go slow and when to go fast. Think slowly with strategy. Think quickly with instincts.
  5. The role of BRAND is to create a bond, power, and profit, beyond what the product itself could achieve. In fact, we only have brands, if we think we can make more money from the brand than just the product alone. The really is no other reason.
  6. The more loved a brand is by consumers, the more, the more powerful and profitable that brand can be.
  7. Halfway between the exactness of Science and the unknown of Art lies the power of an IDEA that can bring them together”
  8. The best brands are either different, better or cheaper. Or else, not around for very long. Do you know what your brand is?
  9. Consumers don’t care what you do until you care what they want. Instead of just yelling what you do, put yourself in the consumers’ shoes and ask yourself  “so what do get?” and then ask “so how does that make me feel?” This turns product features into consumer benefits, both functional and emotional. 
  10. The power of three helps provide focus. If your brand only has 3 strategies and each strategy only has 3 tactics, then you should be able to do an amazing job on all 9. Much better than 5 strategies times 5 tactics and 25 things. I would bet that my 9 would beat your 25 any day.
  11. The better your people, the better the work, the better the business results. So then, are you doing enough to make your people better? Invest in training your people.
  12. Ask your people at every stage “Do you love it?” and watch their eyes to see if they tell the truth. Because, if you don’t love the work, how do you expect your consumer to love your brand?
  13. A beloved brand uses the love consumers have for the brand to replicate the positional power of a Monopoly. And from that power, the Beloved Brand drives stronger growth and higher profits.
  14. Smart media plans start with understanding where the customer is, not where the media is.
  15. Analytical stories get decision-makers to “what do you think” stage Analysis turns fact into insight and data breaks form the story that sets up strategic choices.
  16. If you knew that being a better client would get you better advertising, do you think you’d be able to show up better?
  17. If you aren’t talented enough to come up with an ad in the first place, then why are you now talented enough to do something even harder: change the ad. Instead of telling the creative team your changes, I’d rather you give the creative team your problem with the ad, and let them figure out it rather than your solution for the ad and let them feel demoralized.
  18. Creative advertising people are problem solvers, not blue sky thinkers. So give them a problem, not a blank page. They are “in the box” thinkers not “out of the” box thinkers. Use your brief to put them in a box and your creative direction to put them in a new box.
  19. The classic flaw of Brand Plans is having both penetration and Usage frequency. Penetration Strategy gets someone with very little experience with your brand to likely consider dropping their current brand to try you once and see if they like it. Usage Frequency Strategy gets someone who knows your brand to change their behavior in relation to your brand, either changing their current life routine or substituting your brand into a higher share of the occasions. Trying to do both at the same time will destroy your plan.
  20. We control more than we think we do. But just like in sports, the most competitive weapon we have is the creation of time and space. The most competitive brands act quickly, before others do and create a space around themselves that they own, through reputation, and are free from attack.

You will find this type of thinking in my book, Beloved Brands.

Beloved Brands Book

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

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

  • How to think strategically
  • Write a brand positioning statement
  • Come up with a brand idea
  • Write a brand plan everyone can follow
  • Write an inspiring creative brief
  • Make decisions on marketing execution
  • Conduct a deep-dive business review
  • Learn finance 101 for marketers

Available on Amazon, Apple Books or Kobo

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

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

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

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

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

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

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

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

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

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

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

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

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

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How to win the competitive battle for your consumer’s heart

Posted on Posted in Beloved Brands Explained

You must decide if you will position your brand to be better, different, or cheaper. Otherwise, you will not be around for very long. 

A winning brand position matches what consumers want with what your brand does best, always better than your competitors. I will outline four types of competitive brand strategy situations: the power player, challenger brand, disruptor brand and the craft brand. You must identify and choose one competitive situation, which best fits where you are today, and where you want to go next.

To find the competitive space in which your brand can win, I introduce the Venn diagram of competitive situations. Looking below, the first circle should list out everything the consumer wants. The second circle then lists everything your brand does best. And, finally, the third circle lists everything your competitor does best.

competitors

To win, brands have to find the space where they are better, different, cheaper…or else they will not around for very long.

To find your brand’s winning zone, you should match up what consumers want with what your brand does best. This provides you a distinct space that you can own and defend from attack. To maintain ownership over that space, your brand should always be able to satisfy the needs of the consumer better than anyone else can.

Your brand will not survive in the losing zone, which is the space that matches up the consumer needs with the area where your competitor does it better than your brand. It is dangerous to try to play in this space, because over the long term, your competitor will beat you.

Brands can win the risky zone

As markets mature, competitors copy each other. It becomes harder to be better with a definitive product win, and that leaves you to play in the risky zone, which is the space where you and your competitor both meet the consumer’s needs in a relative tie. The tie is important to understand, because brands can still win the tie when they make their brand seem different enough that consumers perceive their brand to be better. Perception becomes reality. The four ways to win the risky zone is to leverage your brand’s power in the market to squeeze out lesser brands, or to be the first to capture and defend the space, or to win with innovation and creativity, or find ways to build a deeper emotional connection.

Sadly, I do have to always mention the dumb zone where two competitors “battle it out” in the space where consumers do not care. One competitor says, “We are faster” and the other thinks, “We are just as fast”. A competitive war starts up, yet no one bothered to ask the consumer if they care.

Competitive situations

Brands rarely experience competitive isolation. Even in a blue ocean situation, the euphoria of being alone quickly turns to a red ocean, cluttered with the blood from nasty battling competitors. The moment we think we are alone, a competitor is watching and believing they can do it better than we can. When you ignore your competition, believing only the consumer matters, you are on a naive pathway to losing. Competitors can help sharpen our focus and tighten our language on the brand positioning we project to the marketplace.

Regarding marketing war games, I will use this Venn diagram to map out four types of competitive brands: 

  1. Power players
  2. Challenger brands
  3. Disruptor brands
  4. Craft brands. 

Power Player brands

Power players lead the way as the share leader or perceived influential leader of the category. These brands command power over all the stakeholders, including consumers, competitors, and retail channels.

Regarding positioning, the power player brands own what they are best at and leverage their power in the market to help them own the position where there is a tie with another competitor. 

Owning both zones helps expand the brand’s presence and power across a bigger market. These brands can also use their exceptional financial situation to invest in innovation to catch up, defend, or stay ahead of competitors.

Power player brands must defend their territory by responding to every aggressive competitor’s attacks. 

They even need to attack themselves by vigilantly watching for internal weaknesses to close any potential leaks before a competitor notices. Power player brands can never become complacent, or they will die.    

 

One of the best contemporary power player brands is Google, which has managed to dominate the search engine market. The company’s extreme focus and smart execution gained market power and squeezed out Microsoft and Yahoo. Focused on providing knowledge for consumers, Google has continued to expand its services into a bundle of products with e-mail, maps, apps, docs, cloud technology, and cell phones. Regarding advertising dollars, the combination of Google and Facebook now accounts for over 80% of all digital advertising spending. We are currently entering the digital duopoly age with influence shared between these two power player brands. 

Challenger brands

Challenger brands must change the playing field by amplifying what your brand does best while simultaneously repositioning the power player brand you want to take down. 

While your first instinct would be to attack the power player’s weakness, the smarter move is to reposition one of the power player’s well-known strengths into a perceived weakness. This strategy helps move the power player brand outside of what consumers want.

When you attack a power player brand, be ready for the leader’s potential defensive moves and anticipate a response with full force, as the power player brand has more significant resources than you. Be highly confident that your attack will make a positive impact before you begin to enter into a war. The worst situation is to start a war, you cannot win, as it will drain your brand’s limited resources, only to end up with the same market share after the war. 

Since the power player leader tries to be everything to everyone, you can narrow your attack to slice off those consumers who are frustrated with the leading brand. Tap into their frustration to help kickstart a migration of consumers away from the leader. If you can gain these lost consumers, you can quickly change share positions. 

One of the best examples of a challenger brand that made significant gains is the Pepsi Challenge from the 1970s. It was a direct offensive attack on Coke. In blind taste tests, Pepsi was the preferred brand. Pepsi is a much sweeter taste, so in a quick hit, it was the chosen brand. Coke is an acquired and memorable taste. The blind taste test took away the Coke brand name and the emotional feelings of that brand. At the same time, Pepsi amplified its strength as the “new generation” and positioned the brand as the solution to consumers ready to reject the “old taste” of Coke. This approach was so powerful it was even a contributing factor to the launch of a sweeter “New Coke.” 

Disruptor brands

Disruptor brands move into a blue ocean space, alone. They use a new product, distribution channel, target market, or price point. They are so different that they appear to be the only brand that can satisfy the consumer’s changing needs.

When successful, the disruptor brand repositions the major players, making them appear unattached to consumers. 

While everyone wants a game-changer, it is a high-risk, high-reward competitive situation. The trick is you have to be “so different” to catch the consumer’s attention and mindshare. Being profoundly different increases the risk you may fail. Also, your success may invite other entrants to follow. At that point, you become the new power player of the new segment. You have to continue attacking the major players while defending against new entrants who attack your brand.

Uber, Netflix, and Airbnb are contemporary brands that effectively use modern technology to create such a unique offering that they cast major category-leading brands or entire industries as outdated and outside what consumers want. Uber disrupted the taxi market, Netflix is revolutionizing the way we watch TV, and Airbnb has had a dramatic impact on hotels. These brands have a smarter ordering system, better service levels, and significantly lower prices.

Craft brand

Craft brands must win a small space in the marketplace that offers something unique to a highly engaged target. These brands succeed when they are far enough away from major competitors that the leaders ignore them because craft brands stay hidden away. 

Craft brands build themselves behind a micro-benefit, including gluten-free, low fat, locally grown, organic or ethically sourced. These craft brands take an antagonistic approach to the rest of the category, portraying every other brand in the category as old-school, overly corporate, unethical, flawed in the manufacturing or the use of ingredients. Many times, these brands take a very aggressive marketing stance, calling out the other brands as unethical or stupid. Craft brands believe it is better to be loved by the few than liked or tolerated by many.

A fantastic of example a craft brand is Five Guys Burgers, which uses fresh, high-quality beef and a commitment not to begin cooking your burger until you order it. The portions are more substantial than typical fast food, and they charge super-premium prices. Five Guys have gone in the opposite direction to most fast food restaurants, whose meals seem frozen and microwaved. Five Guys expanded rapidly with word-of-mouth helping the brand earn a reputation as “the best burger.” Now that Five Guys has become a global brand, McDonald’s has to figure out an adequate competitive response. 

Another excellent example of a craft brand is Dollar Shave, which launched as an online subscription model for razor blades. Dollar Shave uses smart sourcing and a direct-to-consumer distribution model. This efficient model eliminates costs and allows the brand to sell razors at a fraction of the cost you pay for Gillette. For consumers, the price of razor blades has gotten out of control, no matter how much innovation the leaders try to portray. Dollar Shave’s advertising openly mocked Gillette, yet it started in such a small niche, so Gillette ignored them. While year one sales were only $30 million, without a competitive response from Gillette, Dollar Shave continued to grow year-by-year, until Unilever recently purchased the brand for $1 billion. 

Our marketing training program

This type of thinking is in my playbooks, Beloved Brands and B2B Brands

Learn how to think, define, plan, execute and analyze

Beloved Brands marketing model
  • You will find strategic thinking models and examples for each of the four strategic thinking methods, looking at core strength, competitive, consumer, and situational strategies. 
  • To define the brand, I will provide a tool for writing a brand positioning statement as well as a consumer profile and a consumer benefits ladder. I have created lists of potential functional and emotional benefits to kickstart your thinking on brand positioning. We explore the step-by-step process to come up with your brand idea and bring it all together with a tool for writing the ideal brand concept. 
  • For brand plans, I provide formats for a long-range brand strategy roadmap and the annual brand plan with definitions for each planning element. From there, I show how to build a brand execution plan that includes the creative brief, innovation process, and sales plan. I provide tools for how to create a brand calendar, and specific project plans. 
  • To grow your brand, I show how to make smart decisions on marketing execution around creative advertising and media choices. When it comes time for the analytics, 
  • I provide all the analytical tools you need to write a deep-dive business review, looking at the marketplace, consumer, channels, competitors and the brand. Write everything so that it is easy to follow and implement for your brand.

You will learn everything you need to know so you can run your brand. My brand promise is to help make you smarter so you can realize your full potential.

You can find Beloved Brands on Amazon, Kobo and Apple Books

If your brand is afraid of Amazon, then you should be terrified of Alibaba

Posted on Posted in How to Guide for Marketers

[sg_popup id=”9″ event=”onload”][/sg_popup]Now begins the North American battle of Amazon vs Walmart, with the winner to take on Alibaba on the world’s retailer stage.

alibabaI love watching the Kentucky Derby, especially those horses that start off slow, then pick it up on the back straight, and then basically fly past everyone on the last turn, like they are standing still. That’s how I feel about watching the Alibaba brand.

The joint venture between Walmart and Google is a signal that both might be a little bit scared of Amazon. 

But, Alibaba is using their dominance in the world’s largest market (China) to pick up all that speed in the back straight and likely beat both Amazon and Walmart.

Walmart is a tough competitor. They won’t go down without a fight.

Obviously, Amazon has a huge advantage in the US, but things are about to get really ugly as Walmart and Amazon attempt to destroy each other. 

But, if you have ever dealt with Walmart, you would have to be an idiot to ever count them out. Their culture focuses on the relentless fixation on fast-moving items that helps drive cash flow. Sure, Walmart beats up their vendors over price–but that’s mainly to drive sell through. If your brand moves slow, there is no debate–you are told to speed up your sales, and if you don’t, you are gone.

I remember when Walmart starting sending us their weekly sales data. My first thought was “Wow, this is true partnership, amazing data, thanks Walmart”. Then the questions started to come. “Your 250ml cherry flavored cough syrup is not selling fast enough, what will you do to accelerate turns”. We lowered the price. Or even worse, “Your Listerine Pocketpaks product accounts for the highest theft of any product in our stores, fix it”. We changed the packaging, just because they asked us.   In the bricks and mortar space, while most department store retailers sell through their inventory in 130-150 days. Walmart sells through their inventory in 29 days. That’s cash flow.

I expect Walmart will go lower on price than Amazon can tolerate. What retailer owned the low price positioning before Walmart?  Sears. If you go compare prices at Walmart and Sears, you will see why Sears stores are empty and about to go bankrupt.

Does the Google partnership help Walmart?  A little. But both better step it up fast. If Walmart loses to Amazon, the case study class starts off with “Walmart should have started their on-line war with Amazon in 2002, not 2017.”

Even if Amazon can tolerate lower prices and eventually beats Walmart, it will do some damage to their profits. Amazon will experience lower margins, squeezed cash flow, and a divided consumer base. It will further open the possibility of seeing Alibaba entering the US market.

Why Alibaba will win

Alibaba, valued at $420 Billion has seen an 80% increase in the market capitalization in the past twelve months. In the same period, Amazon has seen a 20% increase, still with a slight lead at $465 Billion. 

Here are 5 reasons why Alibaba will eventually win the global e-commerce retail space:

  1. Alibaba can utilize their home-field advantage. Alibaba is dominating the Chinese market, which is the #1 e-commerce population in the world. China has 500 million active on-line users, is twice the size of the US market. Walmart and Amazon will divide up the US market.
  2. Alibaba has a business model that delivers higher profitability. Alibaba’s business model, with no listing fees, with the bulk of their revenue coming from keywords and digital-advertising is closer to the social media model. This gives Alibaba significantly higher margins than Amazon. 
  3. Alipay payment system.  Alibaba launched a digital payment system in 2004, just for their own customers. Along with WePay, it has become the accepted method of payment in China. They have moved to a cashless and even cardless payment world. 
  4. Alibaba will ride the growth curve of the Chinese Economy. Despite the recent slowdown, China’s economy is still growing at almost three times the rate of the US – around 7% over the last couple of years, compared to less than 2.5%.The US has a growing trade deficit – it imports more than it exports – while China imports significantly less than it exports, resulting in a trade surplus.
  5. Alibaba’s sales will benefit from the growth of the Chinese Middle Class. In the last ten years, the average income for China has tripled. It is expected that from 2012 to 2022, those in China making more than $34K US will increase from 3% currently up to 9%, and those in the growing middle class ($16K to $34K) will increase from 14% up to 54%.

So when will Alibaba move west? Likely after the Walmart vs Amazon dust settles. By 2020, I would expect both Walmart and Amazon to be weakened. Whoever wins will have to take on a very healthy, highly profitable, cash-rich Alibaba. Realistically, Alibaba could end up two or three times the size of Amazon.Then it will be like watching that horse in the Kentucky Derby, with Alibaba rounding the final turn on the way to the finish line.

To read more on competitive strategy, click on this link: 

Competitive Brand Strategy

 

In retail, the smart money should be on Alibaba for the win.  

 

To learn about strategic thinking, follow this powerpoint slide presentation. 

 

Beloved Brands: Who are we?

Beloved Brands is a brand strategy and marketing training firm that is focused on the future growth of your brand and your people.

It is our fundamental belief that the more loved your brand is by your most cherished consumers, the more powerful and profitable your brand will be. We also believe that better marketing people will lead to smarter strategy choices and tightly focused marketing execution that will higher growth for your brands.

With our workshops, we use our unique tools force you to think differently and help unleash new strategy solutions to build around. I believe the best solutions lay deep inside you already, but struggle to come out. In every discussion, I bring a challenging yet understanding voice to bring out the best in you and help you craft an amazing strategy.

We will help you find a unique and own-able Big Idea that will help you stand out from the clutter of today’s marketplace. The Big Idea must serve to motivate consumers to engage, buy and build a loyal connection with your brand. Equally, the Big Idea must work inside your organization, to inspire all employees who work behind the scenes to deliver happy experiences for consumers.

We will help build a brand plan everyone can follow. It starts with an inspiring vision to push your team. We then force strategy choices on where to allocate your limited resources. With our advice on brand execution, we can steer the brand towards brand love and brand growth.

To learn more about our coaching, click on this linkBeloved Brands Strategic Coaching

At Beloved Brands, we deliver brand training programs that make brand leaders smarter so they are able to drive added growth on your brands. 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 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

Graham Robertson Beloved Brands

 

Non-Marketing people really need to stop defining what marketing people do.

Posted on Posted in Beloved Brands Explained

I suppose that everyone who has a TV and can critique Super Bowl ads or those with a Twitter account thinks they can now say they are a marketer expert. Sadly, we have let far too many people use the word “MarketingMarketing”or “Brand” in their title. The commentary that I see coming from non marketers is borderline cringe-worthy or hilarious. I have to tell you that the comments are silly.

When I read, “Marketers need to think more about the consumer” I think you’ve never met a real marketer. The best marketers starting doing that around 1915. I guess somehow this is now popular among non-marketers.

When I hear,  “Marketers should analyze data”, again, I’m thinking what incompetent marketers have you been hanging around with. That’s been a major part of the job since 1950. Sure, big data. But I have been working any data from share report data to Ipsos tracking data to weekly Walmart sales tracking data.

Do you know what marketers do?

When I read, “The CEO should be in charge of the brand”, I think “Well then the CEO should be in charge of the IT system”. Sure, in charge, but they should be smart enough to delegate to the experts who will make their brand stronger.

From my experience, the best marketing led organizations have bottom up recommendations, empowering the brand manager to tell their directors what they want to do, who then support them in moving that up to the VP and President.

The worst organizations are when the CEO walks down the hall and asks “Why are we not on Instagram? My 15-year-old daughter was just showing me how cool it is this weekend”. This is likely the reason why the average tenure of a CMO is under 24 months at this point. They are likely sports coaches, hired to be fired, by the impatience of getting results.

When I hear, “Marketing needs to be more than just advertising” once again, you just don’t understand the job….typically advertising is 10-15% of the job.The best marketers determine the strategy, figure out the brand promise, brand communication, product innovation, purchase moment and consumer experience…they touch all, decide all, but they let their experts run each of those touch points.

Marketers don’t just “do marketing”

I am glad so many want to be in Marketing. But you really should have to earn your way into it. Go interview for a job, get rejected a few times, push to really get in there and then learn like ton for a few years. I spent 20 years in marketing. I could not believe how much I learned  in my first five years, then even more in the next five, then way more in the following five and absolute insane amount in those last five years. I’ve now been a consultant for over five years and I swear I know twice as much as I learned in the first 20.

Marketing is not just an activity. The best marketers have to think, define, plan, execute and analyze, using all parts of your brain, your energy and your creativity.

OK, my rant is over.

 

To learn more, here’s a presentation on how to create a beloved brand:

 

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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Can Whole Foods survive? I hope so. But, unless they change, I doubt it.

Posted on Posted in How to Guide for Marketers

Whole Foods has lost 14 million customers the past 2 years. The people they irritated the most: their core customers who used to love the brand. Amazon, who recently bought them, sure has their work cut out to fix what has been messed up. Here are the four main reasons why customers have left Whole Foods.

  1. They got rid of freshly prepared market and used pre-prepared foods,that upset their core customers.
  2. They now carry “unhealthy” and non-organics products such as Cliff Bars, that upset their core customers.
  3. They desperately launched discount “365” brand, did nothing for their core customers.
  4. Mainstream retailers offered same organic products at lower prices. Their non-core customers left Whole Foods.

Notice a trend? Whole Foods does not seem to care about their care customers.

Would you invest in Whole Foods right now?

I remember 20 years ago, someone told me that Blockbuster would go bankrupt once on-line movies would take off. My immediate response was “No way!!!” I had just spent 45 minutes lined up at my local Blockbuster to rent “Usual Suspects” for the third time. How could a brand with so much demand completely fall off the face of the earth?

Now I am starting to wonder if Whole Foods will be around in 20 years? Strategic Thinking Whole Foods I sure hope so. I am a big fan of their brand and all the work they have done. Whole Foods has been the dominant player in ‘organic’ grocery stores the past 20-30 years. They have done everything right. They brought a clear brand positioning, a big idea, a fantastic culture that oozes off the walls of their stores and exhibited through every employee you engage with in the stores. They nail branding as well as Apple, Tesla or Nike. They built an army of outspoken brand fans and they are a beloved brand.

Would you invest in Whole Foods right now? Their market capitalization has fallen from $24 Billion to $9 Billion the last 2 years. None of their moves have re-assured investors that their future is bright.

Is Whole Foods a victim of their own success? 

For the past 70 years, the average grocery stores have served the local community within a 10 minutes drive, with 20,000 skus across 10 aisle grocery stores. The business model of traditional stores pumped out ridiculously high volumes at ridiculously low margins. At the retailer’s head office, the buyers had to beat down manufacturers like P&G, J&J, Coke, Kellogg’s and Kraft. They pushed high listing fees and high trade spend to get any displays or flyer ads. Even after all this work, Grocery stores traditionally make only 20-25% gross margins and then make only 2-4% operating profits. Over the last 10 years Kroger has averaged 22% gross margins and 2.7% operating margins. These are very typical numbers for a grocery retailer.

Whole Foods started as a rebellious disruptor to the grocery category.

Strategic Thinking Whole Foods Rebel BrandWhole Foods came along and figured out they could sell organic raspberries at $5.99  instead of $2.99 for normal raspberries and they could sell organic bacon for $9.99 instead of 3.99. They knew that not everyone would pay, but enough would. Instead of high volume, low margin, they went for modest volume with a much higher margin. Whole Foods averages 35% gross margins (+13% higher than Kroger) and 5.3% operating profit (double that of Kroger).

Up until the year 2000, Whole Foods only had 100 locations, capable enough to own a niche position as a rebel brand, yet small enough to fly under the radar of the bigger grocery players. If you notice the Venn diagram to the right, rebel brands own a niche that is far enough away from the mainstream players, to avoid being seen as a direct competitor. For these rebel brands, they believe it is better to be loved by a few than tolerated by many. These brands take all that passion of their consumers and build around it. At this point, Whole Foods owned organic, and the traditional grocery stores were fine to let Whole Foods own the ‘yoga enthusiasts’.

Most brands start as a rebel brands. They win over the trend influencers, satisfying those consumers who do not want what the mainstream brands offer. The rebel brand takes the aggressive stance against the mainstream, finding flaw in the way they do business.  They stand out as a completely different and a better choice to a core group of trend influencers who are frustrated with all the competitors in the marketplace. This consumer group becomes the most motivated consumers to buy into your new idea. Rebel brands must bring these on board and use their influence on others, as the brand begins their journey from rebel brands to island brands to challenger brands and then onto the Power Player brand. Below is a chart that outlines that evolution, and you can see how to use the different consumer types from the trend influencers and early adopters at the beginning and then finding the mass audience as the brand gets bigger and more powerful.

Brand Innovation

After 2000, the move to organic foods hit a tipping point of acceptance within the mainstream audience. Whole Foods took advantage of this shift and invested in rapid expansion across North America. Whole Foods moved to the next stage of what I call the “Island Brand” stage, where you are so different you are on your own. For the health-conscience consumers, Whole Foods success left the traditional grocery stores in a position where they disconnected from what these consumers want. During this time, Whole Foods expanded from 100 to 430 stores, with forecasts of up to 1,200 stores. Whole Foods had gone from a niche player that traditional grocery brands were willing to ignore to a major threat that pushed the traditional brands to make a counter move.

Strategic Thinking Whole FoodsAs organic moved to the mainstream the traditional grocery store responded by bringing in organic foods into their stores. Most traditional grocery chains report that 25-35% of their fresh food has become organic. These grocery stores are charging 15-25% lower prices than Whole Foods, yet still loving the added margins it gives them.

Simply marketing lesson, no one will ever travel farther and pay more, for something they can get close by at a cheaper price.

As a result, Whole Foods has lost customers to the traditional players. According to Barclays analysts, “Whole Foods has lost about 14 million of its customers over the last 18 months. The magnitude of the traffic declines … is staggering. As most retailers know — once traffic has been lost, those patterns rarely reverse”. Did Whole Foods move to the mainstream too quickly, trying to use the groundswell towards organic among mass consumers to move to a challenger position?

Whole Foods next move was a dumb one.

The history of warfare can be characterized by Generals who over-reacted and under-reacted. Both would lose. Whole Foods made the poor decision to launch a lower price, lower service, and lower margin version of itself called “365”.  I always find it frustrating to watch brands who face an attack and then try to act more like the competitor attacking them, rather than backing up a bit and being themselves. When in a competitive battle, especially against those who own the traditional space who you have attacked, never act like your competitor. Instead of staying themselves, the move to “365” acts more like their competitors.

I do not believe these 365 stores can win. They are a hybrid store which is confusing. They will not attract the mainstream consumer who want their organic foods at lower prices, but still wants to buy Diet Coke and Frosted Flakes. They will not win with the core health trend influencer audience who want more, not less.

How will the 365 stores make money?  Low volume and lower margins is a recipe for bankruptcy.

If they can’t win the mass audience, do they still have the health trend influencers? 

We are seeing local healthy grocery stores pop up around North America ready to offer the health trend influencers more. Due to “costs” Whole Foods has made some moves that will irritate this audience.  They got rid of their freshly prepared market and now use pre-prepared foods. There are now swirling questions about whether their food choices are 100% organic. Whole Foods uses their own standards of judging good/bad food options. Whole FoodsAlso, Whole Foods uses national distribution on most items, not through local farmers. On top of that, Whole Foods carries fairly mainstream brand choices such as Cliff Bars with 28% sugar or Kellogg’s Special K. This confuses or frustrates the health trend setter segment who do not want to see those types of brands in their grocery store.

This leaves Whole Foods potentially without a positioning to stand behind and without a core audience to build around. When you try to be everything to anyone, you end up nothing to everyone. Whole Foods have lost who they are. They could take the advice of Oscar Wilde who once said: “Be yourself, everyone else is taken”.

The problem I see for Whole Foods is they have been spiraling downward with losing sales base, yet they seem unable or unwilling to make the right changes. I would not invest, would you?  While brands start as rebel brands, no matter what stage your brand reaches, when the world around you collapses, I recommend the best thing a brand can do is return back to the rebel status and re-start their brand. Instead of going mainstream with lower price/lower service options like the launch of their “365 store”, Whole Foods should go back to their rebellious roots and go even healthier, go even more local, add high end services back. Make it a full experience the health trend influencers want. Instead of trying to drive high volume from their current audience, they should add higher margin services. Be more like who they were 20 years ago.

When you lose your way, return to the rebel position and kick-start your brand again.

 

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

Beloved Brands: Who are we?

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

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

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

Beloved Brands Graham Robertson

 

 

 

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

Posted on Posted 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. 

Positioning 2016.112

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

Posted on Posted in Beloved Brands in the Market

Barbie has 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 to the self-confidence of girls. The modern Moms didn’t want their daughters to play with Barbie anymore. All of a sudden, Barbie sales declined 20% from 2012 to 2014. The brand needed to make a dramatic change.

 

barbie

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.

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. 

 

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.

This type of thinking can be found in our Beloved Brands and B2B Brands playbooks

Learn to think, define, plan, execute and analyze your brand

  • You will find strategic thinking models and examples for each of the four strategic thinking methods, looking at core strength, competitive, consumer, and situational strategies. 
  • To define the brand, I will provide a tool for writing a brand positioning statement as well as a consumer profile and a consumer benefits ladder. I have created lists of potential functional and emotional benefits to kickstart your thinking on brand positioning. We explore the step-by-step process to come up with your brand idea and bring it all together with a tool for writing the ideal brand concept. 
  • For brand plans, I provide formats for a long-range brand strategy roadmap and the annual brand plan with definitions for each planning element. From there, I show how to build a brand execution plan that includes the creative brief, innovation process, and sales plan. I provide tools for how to create a brand calendar, and specific project plans. 
  • To grow your brand, I show how to make smart decisions on marketing execution around creative advertising and media choices. 
  • When it comes time for marketing analytics, I provide all the analytical tools you need to write a deep-dive business review, looking at the marketplace, consumer, channels, competitors and the brand. Write everything so that it is easy to follow and implement for your brand.

You will learn everything you need to know so you can run your brand. My brand promise is to help make you smarter so you can realize your full potential.

You can find Beloved Brands and B2B Brands on Amazon, Rakuten Kobo or Apple Books

New Axe ad campaign trying to be the “Dove” brand for young men

Posted on Posted in How to Guide for Marketers

71hRmSv1NvL._SL1500_The Axe consumer has grown up and now Axe wants to grow up with that consumer. When my son was 13, he started using the Axe brand. One day, I was walking past him and he asked if I wanted a spray.  I said “No, I don’t want to smell like a 13-year-old”. My son is now in University now and uses “The One” by Dolce and Gabana. Even he doesn’t want to smell like a 13-year-old. And now, Axe is showing they no longer want to be the brand for 13-year-olds. They want to grow up.

Axe has released an Ad campaign that feels a bit like Dove’s “Real Beauty” campaign. (Axe and Dove are both owned by Unilever) Unilever does a fantastic job in bringing consumer insights into their work. “Masculinity today is going through seismic changes. More than ever, guys are rejecting rigid male stereotypes,” says Matthew McCarthy, senior director of Axe and men’s grooming at Unilever. “We’ve been part of guys’ lives for decades, and Axe champions real guys and the unique traits that make them attractive to the world around them. In recent years, Internet searches by men on hair tips eclipsed female in volume. Men are curious about experimenting and trying different things and are spending more time in front of the mirror. It’s much more acceptable.”

The new Axe message is “you don’t have to be perfect, just be your best self”. The ad shows various iterations of the new modern man from brainiacs to one with a big nose, from protestors to dancing in heels or dancing in a wheel chair. Whoever you are, Axe wants you to feel good about yourself and “Find your magic”. 

The challenge for Axe is that it will take time to transform. They will have to stand by their convictions should sales slip. The Axe brand did such a great job in creating that edgy, hilarious, egomaniac, sexy teenage male positioning, the reputation of Axe is deeply engrained in our minds. Here’s the type of Ad we are normally used to seeing from Axe.

This is a good start for Axe brand. It will take time to transform the brand. My hope is they they don’t give up quickly. 

At Beloved Brands, we lead workshops on Marketing Execution that can help your brand team explore their role as a leader in the process, how to write a strategic brief, how to judge and make decisions on marketing execution and then how to give feedback to the agencies. Here’s the powerpoint file:

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 at416-885-3911. You can also find us on Twitter @belovedbrandsPositioning 2016.081

Coke’s new Ad campaign has more fizzle than sizzle

Posted on Posted in Beloved Brands in the Market

coke-taste-the-feeling-1I have been impressed with Coke’s Marketing execution the past couple of years. I love the Coke Freestyle machines where you can customize your own drink from up to 100 options. And I have to admit loving the names on the bottle, even though I had my doubts in the beginning. All that great stuff, and yet the sales have been sluggish for the past 15 months. It’s not the activity that is at fault. It’s just that people want healthier options and Coke is now fighting against that major consumer movement away from Sugary or Aspartame drinks. Sugary cereals are going through the same crisis. But since Coke can’t “fix” the health trend, they may as well try to fix the activities–even if it’s not broken. 

With the earnings report showing that Coke’s revenue has fallen for the past 3 straight quarters, I can only imagine the CEO walking down the hall to find the CMO and say “we need your Advertising to sell more product”. 

At Beloved Brands, we believe that Advertising can only move one body part at a time: the head, the feet, the heart or the soul.Creative Brief 2016 Extract.001

Here’s a great example of a Coke ad idea called “Remove labels this Ramadan” that really touches the consumer’s soul. Even with 19 Million views, it likely didn’t sell a lot of Coke.

To me, an Advertising idea is like a magnet. When it gets too far away from the brand, it no longer moves the brand. The “share happiness” campaign was a huge umbrella idea, but likely so huge, the one thing it didn’t do is move product. 

Today, Coke announced two moves in rolling out their new “Taste the Feeling” advertising campaign. First, you will see in the work that they are clearly linking life moments with drinking Coke. Meaning the creative team was told: “we have to SELL MORE PRODUCT”. Or as I would say, the ads have to move feet.  Second, they announced they would have ONE Master Brand creative idea for all 3 Coke products, red Coke, Diet Coke and Coke Zero.

Here is the main spot Coke launched today, appropriately called Anthem.

I would say it’s an OK spot, not a great spot. For a 90 second spot called “Anthem” it lacks the emotional appeal you would expect, and it won’t really generate any viral share-ability. It has a lot of product shots, but not really the connectivity needed to move product. And I barely even noticed any Diet Coke or Coke Zero. 

To evaluate advertising, we use something we call the ABC’S, which stands for Attention, Branding, Communication and Stickiness. I’d say these score low on attention, moderate on branding, modest on communication and pretty low on stickiness. These type of spots that show a lot of consumer moments to a song usually end up as wallpaper that falls into the background of our multi-tasking lifestyle. There’s no real compelling story here.Marketing Execution 2016.055

Here’s another TV ad called “What is Coke for?”

Again, a bit generic. No emotional pull. Lots of Coke fizzle. And hard to find the Diet Coke or Coke Zero. 

The print does a better job in capturing emotion than the TV, showing how Coke fits in to various moments of your life. 

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Here’s a challenge to Coke, if you are going to name your new spot “Anthem”. make sure it is as epic as this 1971 TV ad: 

Do you think this new campaign will increase Coke’s revenue?

Here’s a workshop we run on how to get better Marketing Execution. In this workshop, we go through how to come up with an Executional brief, based on both positioning and strategy, we take you through how to judge the work and how to provide motivating feedback to your agencies.

We make Brands stronger.

We make Brand Leaders smarter.™

BBI ads for 2015.011We offer brand coaching, where we promise to make your brand better by listening to the issues, providing advice that challenges you, and coaching you along a strategic pathway to reaching your brand’s full potential. For our brand leader training, we promise to make your team of brand leaders better, by teaching sound marketing fundamentals and challenging to push for greatness so that they can unleash their full potential. Feel free to add me on Linked In, or follow me on Twitter at @belovedbrands If you need to contact me, email me at graham@beloved-brands.com or phone me at 416 885 3911Positioning 2016.081

The consumer has changed dramatically. Have you changed enough?

Posted on Posted in How to Guide for Marketers

consumer change.001

Marketing has changed dramatically and if you are not changing with it, then you will not be able to unleash the full potential of your brand nor will you be able to unleash your own full potential as a Brand Leader. When I say that Marketing has changed, people think I am about to talk about the change in media options over the last 15 year, with the opening up of digital, social and search. Sure, that has changed the way we do things, but is really at the surface level. Starting at the turn of this century, we began witnessing a deeper underlying change happening with consumers, who have begun rewarding those brands who exceed their expectations, who have gravitated towards brands that treat them as though they are special, and who have become loyal to brands that open up and establish a higher purpose worthy of connecting with.

Consumers ended the last century tired of the crap that brands kept promising, jaded by the tricks brands used to get them to buy, leaving them feeling burned by over-promise and under-delivery. Consumers now want and expect more. Consumers want to be appreciated and they are willing to love the brand that will treat them like they are the only person that matters. Everything a brand does, should start and end with the consumer in mind. Brands are shifting from fighting for a space in the mind of the consumer to fighting for a place in the consumers heart. It is about becoming one of the favorite parts of the consumers’ day, not just pure product performance. The change in media is merely an enabler to the underlying change, but not a driver. The best brands of today are loved.The media options have had a dramatic influence on the consumers lifestyle–the number of messages, multi-tasking and being tired of being burned. The change in the consumer should drive your Media Planning more than the change in media

  1. Consumers see more brand messages than their brains can handle. 
    • In the year 2015, consumers see up to 7,000 brand messages every day. The fastest thing our brains now do is reject advertising messages. The digital ads on every website you visit, at the top, on the side, on the bottom, drop down boxes. Whenever you turn on Facebook, every google search you make. Take the subway and see hundreds or drive to work and see the same. We now surf messages quickly and only engage in a few each day. Life was much simpler in the last century when consumers saw a few billboards on the way home from work, had dinner and watched Seinfeld on TV seeing a few ads each night. But, in the current world, your consumer is being bombarded by brands. Are you doing anything to change the way you approach consumers to ensure you are gaining their attention?
  2. Consumers are constantly multi-tasking—driving, walking, talking.
    • Even with 7,000 messages a day, consumers are barely watching. FOMO (Fear of Missing Out) means people are constantly multi-tasking. I rarely watch a TV show without my laptop or phone nearby. Most people sleep beside their phone and read updates as soon as they awake. Even with laws against texting and driving, I see it every day. And walk downtown in a straight line and you are bound to walk into someone “walking and texting”. Once you gain the consumers attention, you have to find a way to engage them to stay with your brand. What are you doing to hold the attention of your consumer to avoid them being distracted away?
  3. Consumers are tired of being burned by faulty brand promises.
    • Consumer marketing is a little over 100 years now and hopefully consumers have become much more sophisticated in their decision-making. Last century, we saw too many brands over-promise and under-deliver. But brand reputations are now being made and equally dying based on the consumers ability to do their homework. They do their own research, they can ask friends or read on-line reviews. If they are burned by a brand, they quickly spread the message. Have you figured out a brand promise that you can deliver beyond the purchase moment? Have you created an experience that will get purchasers to become brand fans?
  4. Consumers now take control and action over the buying process.
    • Consumers now control what they buy. They are not sold to. Last century it was all about selling. In the current world, it’s all about buying. They are taking full control over the buying process–gaining awareness about brands from friends, only considering after doing their own research to validate what they are hearing and then they figure out the ideal pathway to the purchase moment. They read labels, read reviews and make up their own minds. They pose questions to friends for advice. Putting 100% of your budget on a 30 second TV no longer works. Have you figured out how to co-manage the path to the purchase moment along side the consumer to help them consider, search, purchase and experience your brand?
  5. Consumers connect with brands they believe in.
    • Consumers now want and expect more. They line up to brands that line up to their values and expectations. Consumers want to be appreciated and they are willing to love the brand that will treat them like they are the only person that matters. Ethics and behavior now matter. We are seeing the ethics of brands like Volkswagen and GM destroying the brand reputation. We are seeing Chipotle facing small regional safety crisis points, with the news spreading like wild-fire and the brand is dying before our eyes. Consumers have full access to information and they are not just buying what you do, but why you do it. The most loved brands are based on a big idea that consumers connect with, yet that idea has to reflect the brand’s soul. Have you figured out your brand purpose and then figured out how to build your stated brand purpose into your brand story, your product innovation and the brand experience? Have you figured out how to make the brand purpose be part of the purchase moment as a deal closer to a tie between two brands?
  6. Consumers reward amazing experiences over products alone.
    • Last century, consumers just bought products like Tide, Kodak and Pampers. Most of them we learned about on quick 30 second TV ads that followed a similar formula screaming “we are the best”, shown every half hour trying to drive awareness. But consumers are connecting at a deeper level with brands that offer an experience that over-delivers the promise. With Starbucks, it’s more about the “moments” than it is about the “coffee”. Everyone keeps pointing to the fact Starbucks coffee finishes middle of the pack in blind taste tests. But you cannot replicate the experience of nice leather chairs, cool music, great conversations, amazing culture of people. We are starting to see that the new product is becoming the experience, and while claims supported the product, it is the organization’s culture that supports the experience. Have you figured out to create an experience around your brand that brings it life beyond the product itself? 
  7. Consumers explore rationally, but stay emotionally.
    • In this 21st century economy, the winning brands are those who can create strong emotional bonds with their consumers. While brands might gain entry into the consumers mind in the first 7 seconds, consumers are now emotionally engaging with brands. Research companies like Hotspex show that over 50% of brand decisions are emotionally based. To achieve Brand Love,  brand needs a Big Idea that expresses your brand’s soul and serves to connect with consumers while shaping the internal culture of the brand. Brands need Focus in the choices a brand makes in terms of vision, strategy, positioning and execution. And brands need to show Passion in everything to drive creativity that connects with consumers and precision that helps create brand experiences that exceed expectations. The best brands build every touchpoint around the Big Idea including the promise, brand story, innovative products, ubiquitous purchase moments and brand experiences. How will you use Big Ideas, focus and passion to really create a bond with your consumers to turn them into brand fans that love your brand?

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What is it that creates a bond between the consumer and the brand? You need to be able to describe your brand to CONSUMERS in 7 seconds, 60 seconds, 30 minutes and over the lifetime of the brand, always telling the same story. 

  • In today’s crowded branded marketplace, the modern consumers see 7,000 brand messages a day. The fastest thing our brains do is reject brand messages. Brands need an entry point to gain permission to the consumer’s brain. Can you explain your brand in 7 seconds?
  • After decades of being burned by false promises, modern consumers are naturally cynical and constantly doubting brands. They test the brand by asking detailed questions. Brands need a solid story that closes off any doubts consumers may have. Can you explain your brand in 60 seconds?
  • Modern consumers like to take control over their buying process as they move from consideration to search and finally to a purchase moment. Brands need to move with consumers through to the purchase moment. Can you explain your brand in 30 minutes?
  • As the modern consumer experiences the brand, they either accept or reject the promise. Consumers are more loyal to brands they share a common purpose and shared values. Brands need to create experiences that match the brand story. Can you describe your brand over the lifetime of the brand, always telling the same story?

What are you doing to deal with the changing consumer?  

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Below is our Beloved Brands Workshop we run on Strategic Thinking:

We make Brands better.

We make Brand Leaders better.™

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

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