Tag Archives for " brand marketing "

Sailing into a big, blue ocean of opportunity.

Kevin Plank, CEO of Under Armour, likes to tell the story of his origin as an entrepreneur. And it always revolves around focus…

Under Armour marketing on the Brand Insight Blog“For the first five years we only had one product. Stretchy tee shirts,” Plank said. “Great entrepreneurs take one product and become great at one thing. I would say, the number one key to Under Armour marketing – to any company’s success – plain and simple, is focus.”

Under Armour’s marketing focus on stretchy tees for football players enabled Plank to create a whole new pie in the sporting goods industry. He wasn’t fighting with Nike for market share, he was competing on a playing field that no one was on. It was a classic “blue ocean” strategy… instead of competing in the bloody waters of an existing market with well-established competitors, he sailed off on his own. And he kept his ship on course until the company was firmly established. Only then did they begin to expand their product offerings.

That’s good branding. That’s a Blue Ocean Strategy. That’s Under Armour marketing.

bend oregon advertising agency blog post blue ocean strategyOften the lure of far-away treasure is just too tempting for the entrepreneur. The minute they get a taste of success, and have some good cash flow, they sail off into completely different oceans.

It’s a common phenomenon among early-stage start-ups, where it’s spun, for PR purposes, into a strategic “pivot.” Every meeting with a potential investor or new strategic partner triggers a dramatic shift in the wind…

“Wow, that’s a great idea. We could do that.” “Oh, we never thought of that. Yes, definitely.” “Well, that would be a great pivot for us. We’ll definitely look into that.” Those are usually the ones that burn through their first round of funding and then sail off into oblivion. Because there’s no clear purpose. No definitive direction. No substance upon which a brand could be built.

W. Chan Kim and Renee Mauborgne wrote the book “Blue Ocean Strategy” back in 2005. They don’t mention Under Armour, but it fits their blueprint of success precisely… “Reconstruct market boundaries to create uncontested market space.” “Use value innovation to make a giant, disruptive leap forward in your industry.”

Plank was sailing into uncontested waters with one simple, focused idea. Plus he had a well-executed brand identity that was perfectly aligned with his blue ocean strategy. The name, Under Armour, fits perfectly. It sounds strong because it was originally targeted toward strong, burly football players. Plus, it’s under shirts, not outter shirts. It even implied safety in an inherently unsafe sport.

Plank didn’t have to explain his value proposition to anyone… From the very beginning it was ridiculously clear what the company was all about. Potential customers grasped the idea immediately.

635951675884228258570468626_ikea-shoppingWhen it comes to branding, simplicity trumps complexity. The strongest brands are always built on simple, single-minded ideas.

Take Ikea, for instance. They have thousands of products, but they all revolve around one simple core brand concept: Furniture for the masses. They figured out how to offer functional, contemporary furniture for a lot less money… by leaving the assembly in the hands of the customer. The products themselves are cheap, cheesy and downright disposable. But that’s not the point. You can furnish an entire apartment for what you’d normally pay for a couch. Plus, Ikea created a shopping experience that makes you feel like you’re getting something more. And consumers eat it up.

Ikea has a cult-like brand following. People camp out for days at Ikea store openings. They drive hundreds of miles and devour 191 million copies of Ikea’s printed catalog. All because of two things: price and shopping experience.

Ikea didn’t try to compete with traditional furniture manufacturers who focused on craftsmanship and quality. Instead, they ascribed to the old saying, “If you want to live with the classes, sell to the masses.” Every Ikea design begins with one thought in mind: How to make common household items less expensive.

Their single-minded focus on cost-conscious consumers is their “Blue Ocean” strategy and the cornerstone of their success. They design products and a retail shopping experience to fit that core brand concept.

So the next time you walk into one of those giant, blue stores for some Swedish meatballs and bed linens, think about that… Are you trying to slug it out with bigger competitors in the bloody waters of a red sea, or are you charting your own blue ocean strategy?

Go where the enemy isn’t. Take a page from the Under Armour marketing handbook and zig when everyone else zags. That’s how you’ll create a brand, and a business, that sticks.

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The difference between marketing strategy and tactics.

I’m appalled. A successful marketing guy asked me a question recently — a real no-brainer — which led me to believe he didn’t know the difference between marketing strategy and tactics.

How can that be?

He’s held several high-paying marketing positions. He’s college educated in Marketing 101. And 301, for that matter. He’s gotta know this stuff.difference between marketing strategy and tactics

So I started doing some research online and I’ve found the problem: The internet!

There’s more misinformation than information out there. More nonsense than common sense.

Even some of the biggest gurus in the industry have posted misleading information on the difference between marketing strategy and tactics.

For instance, I ran across one article that listed “search engines” as a marketing strategy and said that “long-term strategies such as giving away freebies will continue to pay off years down the road.”

No wonder the guy’s confused. Freebies are NOT a strategy.

This isn’t just a matter of semantics, it’s negligence. Advice like that would never get past the editors of a brand-name business magazine, but you can find it on-line.

marketing warfare marketing strategy and tactics from BNBranding

Feeling embattled? BNBranding can help. Schedule a free, 20-minute consulting call today.

In any case, the easiest way to clarify the difference between marketing strategy and tactics is to go to the source. I’m sorry if the war analogy doesn’t appeal to you, but that’s where these terms came from, some 3,000 years ago.

Here’s how it breaks down: Goals first. Then strategy. Then tactics.

Goal: Win the war.

Strategy: “Divide and conquer.”

Tactics:

CIA spies gather intelligence.

Navy Seals knock out enemy communications.

Paratroopers secure the airports.

Armored Divisions race in and divide the opposing army’s forces.

Drone attacks take out the enemy leadership.

An overwhelming force of infantry invade.

Hand-to-hand combat.

A marketing strategy is an idea… A conceptualization of how the goal could be achieved. Like “Divide and Conquer.” Another possible war strategy would be “Nuke ‘Em.” (They call them Strategic Nuclear Weapons because they pretty much eliminate the need for any further battlefield tactics.)

A marketing tactic is an action you take to execute the strategy.

But let’s get off the battlefield and look at a successful brand. In business, great strategies are built on BIG ideas. And BIG ideas usually stem from some little nugget of consumer insight.

imagesBack in the 70’s, executives at Church & Dwight Inc. noticed that sales of their popular Arm & Hammer baking soda were slipping. The loyal moms and grandmas who had been buying the same baking soda all their lives weren’t baking as much as they used to.

Business Goal: Turn the tide and increase Baking Soda sales.

Strategy: Devise new reasons for their current customers to pick up that yellow box at the supermarket and use more baking soda. Specifically, sell Arm & Hammer as a deodorizer for the fridge.

That’s a big, strategic idea that led Arm & Hammer in a completely different direction. They’re now marketing a whole line of environmentally friendly cleaning products. Every current Arm & Hammer product, from toothpaste to cat litter, originated from that strategy of finding new ways to use baking soda. And in the process, an old-fashioned brand has managed to stay relevant.

Tactics: All the traditional marketing tactics were employed… TV advertising. Magazine ads. Digital advertising. Search engine marketing. Content marketing. Retail promotions. Website dedicated to all the various uses of Arm & Hammer Baking Soda.

 

 

All good marketing strategies share some common components:

• Thorough understanding of the brand’s status and story.

Arm & Hammer has a strong heritage that dates back to the 1860’s. That yellow box with the red Arm & Hammer logo is instantly recognizable, and stands for much more than just generic sodium bicarbonate.

• A realistic assessment of the product’s strengths & weaknesses.

Market research proved what Arm & Hammer executives suspected… that people don’t bake as much as they used to. But it also showed that people were using their baking soda for all kinds of things besides baking. That was the insight that drove the strategy.

• A clear picture of the competition.

Arm & Hammer has always been the undisputed market leader in the category. However, when they decided to introduce toothpaste and laundry detergent, the competition became fierce. Arm & Hammer’s long-standing leadership position in one vertical market gave them a fighting chance against Procter & Gamble.

• Intimate knowledge of the consumer and the market.

The shift away from the traditional American homemaker directly affected baking soda sales. Church & Dwight kept up with the trends, and even led the charge on environmental issues.

• A grasp of the big-picture business implications.

Good strategies reach way beyond the marketing department. When you have a big idea, execution of the strategy will inevitably involve operations, R&D, HR, finance and every other business discipline.

the branding process at BNBranding

The top three circles represent strategy. All the activities in the blue circles are tactics. You can’t do it all yourself. BNBranding can help. Schedule a free, 20-minute consulting call today.

A great strategy does not depend on brilliant tactics for success. If the idea is strong enough, you can get by with mediocre tactical execution. (Although I wouldn’t recommend tactical short cuts.)

However, even the best tactics can’t compensate for a lousy strategy. You can waste a lot of money on tactics if there’s no cohesive strategy involved.

Some people confuse marketing strategy with marketing objectives. They are not synonymous. Here are a few examples of “marketing strategies” from seemingly credible on-line sources:

“Create awareness.” “Overcome objections.” “Boost consumer confidence.” “Refresh the brand.” “Turnkey a multiplatform communications program.” That’s just marketing industry jargon!

These are NOT strategies, they’re goals. (And not even very good goals.) Remember, it’s not a strategy unless there’s an idea behind it.

Any number of strategies can be used to achieve a business goal. In fact, it often takes more than one strategy to achieve a lofty goal, and each strategy involves its own unique tactical plan. Unfortunately, a lot of marketing managers simply throw together a list of the tactics they’ve always used, and call it a strategy.

unnamedIf you’re still wondering about the difference between marketing strategy and tactics, try the “what-if” test…

At Dominoes, someone said, “Hey, what if we guaranteed 30-minute delivery?” Dominoes couldn’t compete on product quality or price, but they could compete on speedy delivery.

So a strategy was born.

After that, their entire operation revolved around the promise of 30-minute delivery. They built a hell of a strategy around a simple, tactical idea. That strategy worked well for more than 20 years until a lawsuit forced them to abandon it. Now Jimmy John’s owns the “Super fast delivery” niche in the fast food industry.

At Arm & Hammer someone asked, “What if we could come up with a bunch of new uses for baking soda?” That’s a strategy.

On the other hand, “What if we do search engines?” doesn’t make sense. Must be a tactic.

“What if we increase market share?” There’s no idea in that, so it must be a goal.

What if we could screen all web content for factual errors and eliminate some of this confusion? Wouldn’t that be nice.

The fact is, even the sharpest marketing people need help sometimes. BNBranding can help take your business to the next level by devising a unique new strategy and executing it in creative ways. Schedule a free, 20-minute consulting call today.

For more on strategy and tactics, read THIS post.

by John Furgurson. Copyright 2017 BNBranding.