strategy

Strategy: How to Build a Brand that Emotionally Connects with Users? Ask the Right Questions

A recent TechCrunch post reflected on the reasons Facebook and MySpace have failed to emotionally connect with Japanese users, commenting:

Mixi, the country’s biggest social network, positioned itself as a tool for communicating at a distance through diaries and communities to meet like-minded members. It doesn’t primarily exist to make new friends (poking is restricted) or as a platform for public self-presentation.

A perfect example of a cultural misconception: Mark Zuckerberg recently said in Tokyo one of Facebook’s unique selling points is the usage of real names and photos in profiles. This may be true but it’s exactly what Japanese web users usually try to avoid.

Whether or not TechCrunch’s observations are correct, it is a fact that all too often a company cobbles together a brand positioning statement based on superficial or incorrect perceptions of their target audience, whether the users are global or local. The company’s tribal knowledge, assumptions and incomplete or poorly executed research masquerade as insight. This makes it unlikely they will be able to establish a framework on which to emotionally connect with their target audience.

Building a brand that resonates emotionally with users requires the leadership team’s commitment to the overall branding process. It also means the company must consider perspectives which may be different from their own. And it also requires an ability to ask the right questions.

I can’t help you with the first two requirements. But I can suggest some questions that will help you understand your target user’s cultural, emotional and attitudinal perspectives regarding the category and category brands. Keep in mind that you may need to utilize indirect, as well as direct, questioning techniques since the target audience may be unable or unwilling to express their perspectives.

  • Identify the lifestyle motivators behind your users’ decisions to help you understand the role your brand can play in their lives, i.e., why do they choose to live where they live? Why did they choose the type of car they drive? Why do they dress the way they do? Try to ascertain what drives their decisions…status, self-expression, security, etc.?
          • How do your users wish to be perceived by others? Which brands assist them in attaining the image they seek?
          • What are the emotional drivers that influence the target’s use of brands in your category? If your brand is a line of baking mixes, for example, determine what emotions motivate target users to bake. Is it love for their family, self-expression, etc.? What emotional benefits are most important to them? Do any of the category brands deliver the emotional benefits they’re seeking? If so, how?
          • What are the specific features and functional benefits that ensure emotional satisfaction with the brand? How well do brands in the category, including yours, deliver these features and functional benefits?
          • Also ask users what they dislike about brands in the category and what emotional needs are unmet so that you can understand how well your brand resolves their issues.
          • What proof do users need to trust your brand will deliver what it says it will deliver?

One critical result of a well-defined target audience is understanding the emotional benefits that are important to target users and how your brand delivers on these emotional benefits. This does not preclude the importance of identifying demographic, geographic and technographic attributes. But keep in mind that you don’t want to amass a laundry list of information.

Ask questions that reveal opportunities to emotionally connect with your users and you’ll be well on your way to developing a richly compelling and successful brand.

See also:
brand – what is it?
positioning statement
point of difference
pain point
target audience
frame of reference
reason to believe
brand essence
portfolio architecture
commoditization

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Strategy: Brand Marketers Should Look Before They Leap Into a Green Strategy

According to Brandweek, “Eco Pulse,” a national study that focused on consumer knowledge and attitudes about green issues, found that 42% of respondents said they didn’t know what features a home would need to have before they would consider it green. Another 28% said solar, 12% said compact fluorescent light bulbs and 10% named Energy Star appliances.

Nearly half (49%) of respondents said that a company’s environmental record was important in their purchasing decisions. But just 21% said this had driven them to choose one product over another.

So what does this mean to brand marketers?

Adopting green branding and messaging should be a strategic decision, not a response to media noise. Where to start?  Define what greenness means to your brand---there are lots of definitions of green, and lots of implications. Incorporating green into your brand may require significant changes within the organization; regarding it simply as a communications message is a mistake that may result in a loss of credibility with consumers.

Then ask yourself if you can articulate the problem or need that green features and benefits solve for your consumer. Keep in mind that numerous studies have shown that most consumers don’t see a ‘green’ problem in need of solving. And they won’t pay a premium for something that doesn’t provide them with a unique solution to an important problem or need just because it’s green.

Also, keep in mind that some consumers feel companies should adopt environmental and energy friendly policies as a matter of business practice. So don’t assume that announcing that your brand is green is necessarily going to result in a competitive or public relations advantage.

Finally, even when green is relevant, its positioning should be secondary to key product benefits. Consumers, as indicated in the study above, focus on their needs first. Then they’ll consider whether your green products fit their needs and budget.

Here's a great post on the subject, "Saying You're Green Doesn't Make it So" by Lewis Green.


UPDATE:

Here's an excerpt from a July 17th article in The New York Times entitled Cooling Off on Dubious Eco-Friendly Claims that reinforces some of the points in my above post:

"The advertising industry is quicker than most to pick up on changing consumer tastes and moods, and it seems to have grasped the public’s growing skepticism over ads with environmental messages.The sheer volume of these ads — and the flimsiness of many of their claims — seems to have shot the messenger. At best, it has led consumers to feel apathetic toward the green claims or, at worst, even hostile and suspicious of them."


See also:
Brands: What Do You Mean By Green?

Brands: GM Rethinking Multiple Brand Strategy

Offering multiple brands in the same market, but to different target segments, can help a company maximize share. That's been GM’s strategy for years, but the Wall Street Journal reports the company may discontinue some of its brands, in spite of the belief that more brands equals broader market share.  And helps them fight Toyota Motor Corp.

Cutting some of its eight brands, such as Saab, which, according to the article, sells just 35,000 cars per year, or Saturn, which reportedly has never been profitable, could help the company redeploy critical resources in a difficult market. But it most certainly will also result in a loss of market share since not all of a discontinued brand’s customers will necessarily migrate to another GM brand.

Please don't cut the Corvette.

Source:
GM Weighs More Layoffs, Sale of Brands, Wall Street Journal - 7/7/08

Image Credit:
Chevrolet.com

Strategy: Is There Profit In The Long Tail?

It depends on who you ask.

Source: The Long Tail BlogChris Anderson, editor-in-chief of Wired Magazine and author of The Long Tail: Why the Future of Business is Selling Less of More explains “The theory of the Long Tail is that our culture and economy is increasingly shifting away from a focus on a relatively small number of ‘hits’ (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail. As the costs of production and distribution fall, especially online, there is now less need to lump products and consumers into one-size-fits-all containers. In an era without the constraints of physical shelf space and other bottlenecks of distribution, narrowly-targeted goods and services can be as economically attractive as mainstream fare.” Anderson predicts that over time, the cumulative demand for all these niche products will cumulatively exceed the demand of mainstream products.

But ”Should You Invest in the Long Tail?” , a just-published article examining the Long Tail theory in the Harvard Business Review by Anita Elberse, an associate professor of business administration at Harvard Business School comes to a different conclusion:

Although no one disputes the lengthening of the tail (clearly, more obscure products are being made available for purchase every day), the tail is likely to be extremely flat and populated by titles that are mostly a diversion for consumers whose appetite for true blockbusters continues to grow. It is therefore highly disputable that much money can be made in the tail. In sales of both videos and recorded music—in many ways the perfect products to test the long-tail theory—we see that hits are and probably will remain dominant. That is the reality that should inform retailers as they struggle to offer their customers a satisfying assortment cost-efficiently. And it’s the unavoidable challenge to producers. The companies that will prosper are the ones most capable of capitalizing on individual best sellers.”

Elberse provides advice on leveraging long-tail demand that’s applicable to producers of media and entertainment goods, online retailers and content aggregators as well as manufacturers and retailers of physical goods. Visit here for the full article. Subscription may be required.

Sources:
”Should You Invest in the Long Tail?” Havard Business Review, July-August 2008
“The Long Tail,” Wired Magazine, October, 2004

The Long Tail Blog

Image:
The Long Tail Blog

See Also:
The Long Tail: Why the Future of Business is Selling Less of More, Amazon Books
“The Long Tail”, Wikipedia

Brands: What Do You Mean By Green?

Green branding is a topic that many marketers have been grappling with---not only how to incorporate a green story in their brand positioning---but to understand exactly what it is.

The problem is that while ‘green-ness’ means one thing to you, it might mean something totally different to your customers, since it is used to describe a broad range of strategies and activities from environmental sustainability and organic ingredients to carbon neutral energy consumption and reduced waste. It’s all in how you choose to define it.

So here’s a ‘cheat sheet’ to help you understand a few of the many, varied meanings of green. And don’t forget---the most important meaning of green is how your customers define it, so be sure you’re in touch with how they view it before you make significant changes to your brand.

Some of the varied shades of green:

Recycling
Wind Power
Energy Efficient
Sustainable
Quality
Reduced Environmental Impact
Trash Reduction
Organic Foods
Frugality
Natural
Simplicity
Solar, Wind, Geothermal, Biogas, Biomass and Low-impact Hydro Resources
Water Conservation
Environmentally Friendly
Reduced Shipping
Purity
Reduced Carbon Footprint

 

 

five lessons you can learn from the coca-cola company

When Neville Isdell became The Coca-Cola Company CEO in 2004, sales were declining. Trends seemed to indicate that the lag in sales was due to shifts in consumer tastes and habits, and a growing belief that carbonated beverages were unhealthy.

As a result, the company had moved away from "anything that wasn't carbonated," according to this article from the Atlanta Journal Constitution. 

Isdell reportedly spent "hundreds of millions of dollars" on marketing for carbonated soft drinks and new cola innovation. The result? "The company's global soft drink sales grew faster last year than they have since 1988, despite falling sales in the U.S."

The company's success suggests this advice for marketers who are promoting mature brands:

  • Don't Let Emotion Rule Your Marketing Strategy. Isdell notes that a "lack of belief" in carbonated soft drinks became a "self-fulfilling prophecy" when innovation and marketing support for carbonated brands faltered. New product innovation, such as Coke Zero and added marketing dollars are credited with helping to reverse the negative sales trend.

    True, carbonated beverage sales still declined in the U.S. according to the article. But added marketing support and new product innovation lessened the decline.

  • Stand On The Balcony Once In Awhile. A former boss used this expression to reinforce the importance of learning to separate yourself from the day to day issues that cloud your thinking and vision. Being 'on the balcony' helped Isdell to reaffirm the company's vision and coalesce the company's strategy.

  • Don't Let Others Define You. Isdell is "reframing the category as"sparkling beverages" from "carbonated," a term that has been repositioned as unhealthy by critics.

  • Dance With Who Brung You. Even "aggressive" growth in The Coca-Cola Company's portfolio of non-carbonated drinks won't offset overall sales declines, Isdell points out in the article. It's a mistake to withdraw support from your core while it's still bringing in the lion's share of revenue.

  • Stick To Your Knitting. One of Coke's biggest recent successes has been, you guessed it, a carbonated beverage: Coke Zero. Before you abandon a category or product, consider the ways you can innovate the category to meet changing tastes or trends.   

Via Brandsizzle.com

Celebrity Endorsements – Perilous or Profitable?

The use of celebrity endorsers is a common---and tricky---brand building strategy. Consider these recent ‘incidents’ involving celebrity endorsers:

Christian Dior dropped celebrity spokesperson Sharon Stone from their advertising in China, after the actress suggested that recent earthquakes there were “karmic retribution for Beijing’s treatment of Tibet.”

Conservative bloggers protested a Dunkin Donuts ad that featured Rachel Ray wearing a scarf that they charged resembled keffiyeh, the patterned and fringed scarf that is the traditional headdress of Arab men---and associated by some Americans with terrorism.

A 2007 print ad for Deréon Girls, Beyoncé’s fashion line for young girls, resurfaced as the target of criticism by a new round of bloggers for oversexualizing and ‘tarting up’ young girls. The label is an offshoot of the Hip Hop fashion House of Deréon.

Celebrity endorsements have the potential to significantly raise sales and market share, and introduce the brand to a new target audience. For example, Forbes reports that Chanel’s endorsement deal with spokes icon Nicole Kidman increased business by nearly 16%, without any changes in fragrance or packaging, because “all of a sudden, younger women took notice of the brand.” (Reportedly Nicole Kidman is being replaced by "Amelie" star Audrey Tautou)

But endorsement deals can turn bad in an instant. Who can forget actor Ben Curtis’ famous utterance, “Dude, you’re getting a Dell”? The consumer campaign, was “hugely successful” for Dell Computer Corp. In 2002 Dell began to transition away from Curtis’ character and it’s just as well since the actor was arrested for attempting to buy marijuana on Manhattan’s lower east side.

As a result, the memorable line and character spawned a host of parodies and late night jokes, many of which were at the Dell brand’s expense. (See the left column for a video of one of the Dell ads. If the ad isn’t visible you can view it here.) After Kobe Bryant’s rape arrest, Nutella and McDonald’s hastily dropped their agreements with the basketball star.

Celebrities are human after all; it’s impossible for marketers to remove every bit of risk from a deal. But here are three things every marketer must to enhance the potential for celebrity endorsement success:


Going Global? Make sure you understand cultural sensitivities.
Blogger Daisy Kong asks why Dior would pick Sharon Stone to endorse their brand in China since her pro-Tibet stance is well known. Good question. Brands need to understand cultural sensitivities if they expect to succeed outside familiar turf.

Does the endorser/endorsee relationship make sense?
Seriously, when you think brand extensions for sexy, R&B star Beyonc
é, do you immediately think children’s clothing line?  Strategically smart celebrity/brand pairings enhance the core brand equities of each partner---and this doesn’t work for either.

Put fires out quickly. Despite a marketer's best efforts, sometimes stuff just happens. In the case of Rachel Ray’s scarf, most critics were also fans--- even the most vocal doubted she was trying to make a political statement. (Personally, the only reaction that I had to Ray’s scarf was that it was unattractive. The connection between it and a keffiyeh didn’t occur to me.)

While it's absurd to suggest that Dunkin Donuts was promoting a terrorism symbol, the company was right not to provide fodder for those bloggers who live for controversy. The company simply pulled the ad and got back to making donuts.   

Credits
Rachel Ray photo from AdAge
Dereon Girls Print ad from BrownSista
Dell Dude Screen Shot from YouTube

Brand Strategy: Adopting Your Competitors’ Brand Identity– Smart or Not?

Just about everyone who’s ever reached for an artificial sweetener knows the color code: pink is Sweet’ N Low, Splenda is yellow and Equal is blue. At least until recently. According to AdAge, NutraSweet plans to introduce their packets in the pink, yellow and blue colors of its competitors.

It’s a strategy practiced by generics for years---co-opting the look and feel of the established brands’ packaging to encourage substitution. Quoted in AdAge, NutraSweet says “Consumers use sweeteners by color. Our goal is to improve each color.”

Experts predict that NutraSweet’s gambit will fail because of the competing brands’ appeal to consumers, and because NutraSweet’s pricing won’t provide consumers with a low-price alternative.

But the strategy doesn’t have to be sustaining or low price to steal market share from incumbents. Adopting elements of a competing brand’s identity and focusing on their vulnerabilities---for example, pink packets proclaiming NutraSweet is “New!100% saccharin free,” a clear swipe at Sweet’ N Low---will convince some customers to try NutraSweet and some of those substitutions will be permanent. And the NutraSweet brand and logo have significant recognition and awareness, another huge plus.

That’s not to say that they will have an easy time of it. Aspartame has its own vulnerabilities. Sucralose sweeteners, such as Splenda, have overtaken aspartame in market share, and the artificial sweetener category is commoditized. It will be tough to generate market share based on substantive brand differentiation so NutraSweet’s strategy to grab share from competitors is smart. Hopefully, they've planned additional smart strategies as a follow-up.

Brands: Zappos Brand Based on Great Service Not Lip Service

Are you tired of companies who prattle about good service as if saying it is the same as delivering it? Here’s an online retail brand built on great service, not lip service.

Zappos.com was founded in 1999 by twenty something entrepreneurs Nick Swinmurn and Tony Hsieh, founder of LinkExchange.

In addition to a gargantuan selection (3 million shoes, handbags, clothing items and accessories from over 1,100 brands) Zappos.com offers free shipping and a 365 day return policy.

From the beginning, the founders wanted the Zappos brand to be a “service company that happens to sell shoes.” 

Providing great service requires a customer-focused culture. So all new hires at Zappos.com Las Vegas headquarters, "including accountants, lawyers and software developers," are required to go through Customer Loyalty training.

After a week, trainees are offered a $1000 bonus to quit, plus their salary. Why? To weed out the ‘wrong’ people. “If you want to create a memorable company, you have to fill your company with memorable people, says a Harvard Business article.

The 1500 employee company expects $1 billion in 2008 sales, primarily through repeat business and word-of-mouth. Hsieh says the company" will continue to build our brand and our culture, because in the long run, brand and culture are the same thing.” (Speaking of culture, when was the last time you read about a CEO forgoing his bonus to provide bigger employee bonuses?)

Zappos’ success demonstrates some of the key characteristics of a strong brand: Leadership’s passion for the brand, an unwavering focus on delivering the brand, and a culture that reinforces each employee's responsibility for the brand.

That isn’t to say that the road to success hasn’t had its speed bumps. The company’s recent decision to discontinue their price protection policy prompted customers to post a few dozen complaints, such as the one below, on CEO Hsieh’s blog:


“…For me, the price matching was critical for shopping at Zappos. I find Zappos to charge full retail or even more than full retail for the shoes I've looked at, probably to cover for the "free" shipping. I was happy to give Zappos my business when they could give me a good price, but since the elimination of price matching, I won't be shopping at Zappos anymore.”

Whether or not the removal of the price protection policy significantly impacts the brand remains to be seen. But their close bond to customers and focus on exceptional customer service puts Zappos is in a much better position to weather the complaints than companies who simply offer lip service.

Sources:
Zappos.com
Zappos.com CEO & COO Blog
How I Did It: Tony Hsieh, CEO, Zappos.com
Building a Customer-Focused Culture


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Strategy: The Devil Is In The Execution

 “Creating strategy is easy, but implementing it is very difficult, “ says Wharton management professor Lawrence G. Hrebiniak, author of  Strategy Work: Leading Effective Execution and Change. One challenge is that traditionally, MBAs were trained in planning versus execution, and in many organizations, strategic development and execution are siloed.

One way to ensure that your strategy achieves its objectives is to understand that “execution is a process, and not an action or a step,” says Hrebiniak. Make sure your strategy is planned in tandem with execution and ensure that execution isn’t simply a lower-level responsibility. Becoming skilled at “coordinating decisions and actions across organizational boundaries” is another criterion for success, says Rick Lepsinger coauthor of Flexible Leadership: Creating Value by Balancing Multiple Challenges and Choices.

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